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Review

Hiithlv

FEDERAL RESERVE BANK O ATLANTA
F
Volume X X IX

Atlanta, Georgia, December 31, 1944

Sixth District in
n d u s t r ia l

and business activity and farm and nonfarm in­

in the Sixth District were maintained
peak
I come 1944. Though some indexes have declined near their
levels in
from

wartime peaks, no substantial change in the overall situation
has yet appeared.
►Consumption of cotton in District textile mills reached its
peak as early in the war period as the autumn of 1942. Dur­
ing 1944 consumption in Alabama, Georgia, and Tennessee
mills averaged something more than 50 per cent higher than
the prewar levels of 1935-39. The year’s peak was reached in
February at 168, based on 1935-39 as 100, and the year’s low
of 147 was recorded in July.
Coal production in Alabama and Tennessee rose sub­
stantially in the first half of the year and during May and
June was almost twice as large as in the five prewar years
1935-39. Since June, however, production has been falling
and in November was at 163 per cent of the prewar average.
Despite significant new discoveries of petroleum reserves
in Mississippi this year, production of crude petroleum has
shown little increase. Throughout the year the index based on
production figures in Mississippi and coastal Louisiana has
remained in the neighborhood of 200 (1935-39= 100).
Maintenance of industrial activity during 1944 at a more
or less constant level in the District is reflected in the index
of electric-power production, which fluctuated between 150
and 170 per cent of the 1935-39 average. Production of fuel­
generated electric power has increased more rapidly during
the war than has hydroelectric power production.
A marked decline in construction was recorded in the Dis­
trict. In December 1943, the construction contracts let
amounted to 170 per cent of the prewar average. The index
dropped almost 100 points the next month, never rose as
high as 120 afterward, and in November stood at 68 per
cent of the prewar level.
►Manufacturing employment in the District showed little
change, another reflection of the relatively stable level of
industrial activity during the year. The index throughout the
year has approximated 160 per cent of the 1939 average,
showing little seasonal fluctuation. The experience of the
states in the District has varied somewhat, however.
Manufacturing employment in Florida has declined slightly
during the year but is still far above the District Average.




Number 12

1 9 4 4

Manufacturing employment in Alabama has maintained its
large wartime gains, with the state index remaining near 190
per cent of prewar. Tennessee employment in manufacturing
industry has been between 135 and 140 per cent greater than
the 1939 figure, the state’s index remaining below that of the
other states of the District throughout 1944. Employment in
Mississippi industries has experienced the largest percentage
fluctuations in the District, falling by about 10 index points
between December 1943 and June 1944 and then recovering
this loss by September. Manufacturing employment in both
Louisiana and Georgia showed little change over most of
the year.
►The turnover of demand deposits in District banks was
substantially below prewar levels throughout the year, with
marked increases in the rate occurring during each of the
year’s three war-loan drives. Debits to demand accounts were,
of course, substantially above prewar levels, but the tre­
mendous increase during the war in the size of demand de­
posits has more than offset the increase in debits so that the
rate of turnover is now only about two thirds of the prewar
rate.
The success of the price-stabilization program is reflected
in the District cost-of-living index, which remained virtually
unchanged throughout the year. The cost of living in the
large cities of the District now averages about 30 per cent
higher than prewar levels.
Increased incomes, reflecting both increased manufactur­
ing employment over prewar levels and a substantial rise in
farm income in the District, have resulted in a continuing rise
in department-store sales during the year. On a seasonally
adjusted basis, in the large cities of the District these sales
were running about 25 per cent higher late in 1944 than
at the end of 1943.
►The current high level of incomes in the District and the
active state of business were also reflected in increases in the
volume of debits to individual bank accounts during the year.
In several cities of the District percentage increases in debits
in 1944 over those of 1943 were of large magnitude despite
the fact that the 1943 volume attained record levels. In Ala­
bama, Anniston banks reported debits to individual accounts
in the first 11 months of 1944 up 29 per cent over the com­
parable period of 1943. Increases of from 4 to 8 per cent

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were recorded in Montgomery, Mobile, Gadsden, Dothan,
and Birmingham. Miami led Florida reporting centers with
a 35 per cent increase in debits to individual accounts for the
January 1-November 30 period. St. Petersburg registered an
increase of 20 per cent, and Jacksonville, Pensacola, and
Tampa reported increases approaching 10 per cent. Debits
fell 5 per cent in Orlando. In Georgia, Elberton banks re­
ported debits to individual accounts 16 per cent greater than
they reported in the first 11 months of 1943. Savannah,
Albany, Valdosta, and Atlanta debits were up about 10 per
cent. Smaller gains were recorded in Augusta, Brunswick,
Columbus, Macon and Newnan.
New Orleans was the only reporting center in the Sixth
District portion of Louisiana to register an increase: 14 per
cent. Debits to individual bank accounts in Baton Rouge and
Lake Charles were unchanged from those of last year. In the
Sixth District portion of Mississippi, Jackson recorded a 13
per cent gain in debits between January 1 and December 1
over debits for the similar period of 1943. Meridian and
Hattiesburg had increases of 9 and 8 per cent respectively,
but Vicksburg experienced a 2 per cent decline. Knoxville’s
increase of 63 per cent was the largest in the District. The
other two reporting centers in Sixth District Tennessee, Nash­
ville and Chattanooga, registered small increases of less than
5 per cent.
N aval Stores Stocks Decline
The naval-stores industry in the District has been handi­
capped by severe labor shortages during 1944. The result is
that, despite favorable prices, the production of naval stores
this year is the smallest in decades. During the first six
months of the current naval-stores year, April 1 to October
1, were produced 159,000 barrels (50 gallons) of gum tur­
pentine and 110,000 barrels of wood turpentine. In the
similar period of 1943 about the same amount of wood
turpentine was produced, 112,000 barrels, but production of
gum turpentine was substantially higher, 186,000 barrels.
The carry-over on April 1 was slightly larger than it was on
the same day last year, but consumption was much larger in
the spring and summer this year and, as a result, the carry­
over on September 30, 1944, was only 258,000 barrels, com­
pared with 315,000 on September 30 a year ago.
On April 1, 1943, stocks of rosin in the United States
totaled 1,284,000 drums (520 pounds net), but the carry­
over on April 1, 1944, was only 795,000 drums. Production
of wood rosin from April 1 to October 1, 1944, declined
39,000 barrels, compared with the same six months in 1943,
and production of gum rosin was less by 76,000 barrels. Cur­
rent consumption of rosin, including exports, for which
separate figures are not available, declined from 1,009,000
drums in the spring and summer of 1943 to 862,000 drums
in the similar period of 1944. Nevertheless, stocks of rosin
of the lighter grades are virtually exhausted and the total
carry-over on September 30, 1944, was only 662,000 drums,
compared with 1,119,000 on September 30, 1943.
The production of gum turpentine and rosin is a seasonal
industry. About 65 per cent of the 1943-44 production was
achieved between April 1 and October 1. Indications are that
the season is being terminated somewhat earlier this year, so
that the reduced carry-over at the end of the summer this
year will undoubtedly be further reduced by the spring of
1945.




►In the District’s large lumber industry, shortages of labor,
gasoline, heavy-duty tires, and trucks have seriously handi­
capped the production drive. In the first year or so of the
war, lumber was looked upon as a plentiful material that
could serve in many ways as a substitute for scarce metals.
By the end of 1944, however, the lumber situation had be­
come critical while aluminum and magnesium programs were
being cut back and the supply of steel was easier. The short­
age of lumber results not only from production difficulties
in the woods, complicated by an early winter, but also from
ever-rising military demands. Reconstruction of wrecked port
facilities in Europe and the ever-increasing demand for
lumber for packaging materiel for shipment abroad have
brought about critical shortages of Southern pine and hard­
woods, and virtually no cypress has been available for
civilian use in many months. There is little prospect of im­
provement in this situation until one of the wars reaches its
end.
►The citrus industry in Florida has been enjoying unparal­
leled prosperity. In the current season, early freezes and the
October hurricane have damaged the crop but, even so,
production this season will far exceed the prewar average.
Prices are higher than they were in prewar years and, all in
all, the prospects of the Florida citrus industry for 1945
are excellent.
Early vegetables in Florida also have been damaged by the
hurricane and by freezes, but some replanting has been done.
The demand is almost certain to remain good, with prices
firm, in 1945 so that the truck farmers will enjoy another
prosperous season. Tobacco growers of the District had an­
other good year in 1944 and seem likely to repeat this suc­
cess in 1945.
Cotton Yield Increases
Cotton growers in Alabama, Florida, Georgia, Louisiana,
Mississippi, and Tennessee have produced a crop of cotton
this year amounting to 5,037,000 bales, according to the
last monthly estimate made by the United States Department
of Agriculture on the basis of conditions on December 1. The
crop in these six states is apparently 1,003,000 bales, or 17
per cent, larger than was expected at the time of the first
estimate of the season, August 1, and is 144,000 bales larger
than the 1943 production in these states.
This year’s crop is smaller than that of last year by 4 per
cent in Georgia, 15 per cent in Louisiana, and 25 per cent
in Florida, a small cotton-growing state. Alabama, however,
produced 5 per cent more cotton than it did in 1943, Missis­
sippi 9 per cent more, and Tennessee 16 per cent more. Har­
vested acreage was less in each of the six states than it was
in 1943. For the six states combined the decrease was 10 per
cent, while for the individual states the reductions were 6
per cent for Tennessee and Mississippi, 10 per cent for
Louisiana, 12 per cent for Alabama, 16 per cent for Georgia,
and 23 per cent for Florida.
Per acre yields, however, were larger than those of a year
ago, except in Louisiana, the increase for the six stiates
averaging 8.2 per cent. The yield in Louisiana was 6 per cent
less than it was in 1943, but increases in the other five states
ranged up to 24 per cent, in Tennessee. The Georgia yield is
reported to be the highest ever attained in the state, but the
harvested acreage is the smallest in 73 years. The indicated
yield in Alabama is also the highest on record in that state

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R e c o n n a is s a n c e
Sixth District Statistics for Novem 1 4 com
ber 9 4
pared with N
ovem 1 4
ber 9 3
PEB CENT DECBEASE W' PEB CENT INCREASE

Department S.on, Sales
Department iilf ili Stocks
F u n u tu iiiiiin iiiig iy iiiii

Petroleum |jf|j§j§£uction
Cotton HHnsumption
Gasoline Ta^jijfjbllections
Bank M i l
M em ^r Bank Loan*
Member Bank la^ lm enta
Demand n AnjmilillMIHilliliili
^ n fm i1 nnfm
T rrn m flnfnnm n
m
40

30

20

10

0

1
0

20

30

4
0

— 56 pounds larger than the 1943 yield, and 114 pounds
greater than the 1933-42 average. In Mississippi, this year’s
yield is the largest of any of the Sixth District states and 125
pounds greater than the 10-year average for Mississippi. The
yield in Tennessee this year has been exceeded only twice
before in that state.
At the middle of December the 10-market average price for
spot middling 15/16-inch cotton was 21.60 cents per pound,
up somewhat over the previous week, and 1.85 cents higher
than it was at the corresponding time a year earlier. Accord­
ing to the War Food Administration, spot prices for middling
15/16-inch cotton for the second week in December averaged
55 points under the December purchase price of the Com­
modity Credit Corporation, which was 22.11 cents per pound.
Current sales are in larger volume than they were a year
ago, owing possibly to the later harvesting this year, but
farmers are not offering freely at present market prices. The
storage situation is reported to be improving over much of
the belt, making it possible for additional quantities of cot*
ton to enter the Government loan-and-purchase programs.
Loans were reported on 1944-crop cotton for the season
through December 9, amounting to 1,380,400 bales, com­
pared with 2,346,300 bales through the corresponding week
last year. CCC purchases through December 12 totaled
537,400 bales.
Shipyards Active
From the standpoint of employment, shipbuilding is the
major new wartime industry of the District. This industry
continued to operate near its peak in 1944. In the first 11
months of the year, all United States shipyards delivered
1,532 ships, aggregating 15 million deadweight tons. Of
these, 337 were built in Sixth District yards.
Between January 1 and December 1, the Alabama Drydock
and Shipbuilding Company at Mobile delivered 40 tankers.
The other yard at Mobile, Gulf Shipbuilding Company, built
five C -2 cargo ships and two C-type cargo vessels.
The J. A. Jones Construction Company yard at Panama
City, Florida, has delivered 29 Liberty ships, 15 EC-2 cargo
ships, and 1 special-type vessel. The St. Johns River Ship­



111

building Company at Jacksonville built 28 Liberty ships and
18 E C -2 cargo ships in the first I I months of this year. The
other major Florida shipyard, McCloskey and Company at
Tampa, built 20 concrete vessels during the same period; 15
of these were cargo ships and 5 were barges.
Up to December 1 the J. A. Jones Construction Company
at Brunswick, Georgia, had delivered 27 Liberty ships and
19 E C -2 cargo ships. The Southeastern Shipbuilding Cor­
poration of Savannah delivered 24 Liberty ships and 16 EC-2
cargoes. Seven concrete barges were delivered by the Mac*
Evoy Shipbuilding Corporation, also of Savannah.
The Delta Shipbuilding Company at New Orleans com­
pleted 31 Liberty ships, 5 emergency tankers, and 23 EC -2
cargo vessels between January 1 and December 1. Pendleton
Shipyards, Inc., of New Orleans delivered four coastal cargo
ships in the same period, and Avondale-Marine Ways, Inc.,
of Westwego, Louisiana, delivered six vessels of this type.
The Ingalls Shipbuilding Corporation at Pascagoula, Mis­
sissippi, delivered 17 vessels in the first 11 months of 1944.
Of these, 6 were coastal cargo ships, 4 were C -3 cargo ships,
3 were C-type cargo ships, 3 were military types, and 1 was
a special job.
The 12 District shipyards together completed 139 Liberty
ships, 91 E C -2 cargo ships, 40 tankers, 16 coastal cargo ves­
sels, 15 concrete cargo vessels, 12 concrete barges, 5 each
of the emergency tankers, C -2 cargoes, and C-type cargoes, 4
C-3 cargoes, 3 military type vessels, and 2 special types.
Labor Supply Improves
Important labor-market areas are placed in four categories
by the War Manpower Commission. Group I includes areas
in which acute labor shortages that will endanger essential
production exist or are anticipated. Group I I areas are those
in which there are labor shortages that may endanger es­
sential production or areas that are approaching a balanced
demand-and-supply situation. In Group II I areas, the labor
supply substantially balances the demand so far as essential
production is concerned or a moderate labor surplus currently
exists or is anticipated. Those labor-market areas in which
there is a substantial labor surplus or in which such a surplus
is expected to develop are classified as Group IV.
On December 1, 1944, six areas in the Sixth District were
classified in Group I : Columbus, Macon, and Savannah,
Georgia; Mobile, Alabama; Knoxville, Tennessee; and
Pascagoula, Mississippi. A year earlier 10 areas in the Dis­
trict were so classified. Besides Columbus, Macon, Knoxville,
Mobile, and Pascagoula, these included Pensacola, Panama
City, and Jacksonville, Florida; Biloxi-Gulfport, Mississippi;
and Brunswick, Georgia. Savannah, now classified in Group
I, was in Group II on December 1, 1943.
On December 1, 1944, Biloxi-Gulfport; Brunswick and
Rome, Georgia; Jacksonville, Panama City, Pensacola, and
Tampa, Florida; Vicksburg and Jackson, Mississippi; New
Orleans and Shreveport, Louisiana, were in Group II. A
year earlier Atlanta, Augusta, and Savannah, Georgia; Jack­
son, Mississippi; Lakeland, Orlando, and Tampa, Florida;
Florence, Talladega, and Tuscaloosa, Alabama; New Or­
leans and Lake Charles, Louisiana, were in Group II.
Key war-production areas in Groups II I and IV, that is,
areas in which there is sufficient labor available, on December
1, 1944, included Anniston, Birmingham, Florence, Gadsden,
Huntsville, Talladega, Tuscaloosa, and Decatur, Alabama;

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S ix th D is t r ic t S t a t is t ic s

WHOLESALE SALES AND INVENTORIES—
NOVEMBER 1 4
94

Automotive Su p p lie s.
C lo th in g .........................
Shoes and O ther
Fo o tw ea r...................
D rugs and S u n d rie s..
D ry G o o d s.....................
F re sh Fru its and
V e g e tab le s...............
Farm S u p p lie s............
C on fectio nery..............
G ro ce rie s— F u ll Line
W h o le sa le rs............
G ro ce rie s— Sp ecialty
Lin e W h o le sa le rs..
B e e r.................................
Hardw are— G en eral
H ard w a re...................
H ardware— Industrial
S u p p lie s.....................
M achinery Equipment
and S u p p lie s.............
Paper a n a Its
Products.....................
Tobacco and Its
P roducts.....................
M iscellaneous...............
T O T A L .....................

SALES
Percent change
Percent change
Nov. 19 4 Irom
4,
Nov. 19 4 irom
4,
N oi
o.
Oct.
Nov. N oi Oct.
Nov.
o.
94
Firms 1 4
94
14
9 3 Firms 1 4
14
93
1
3
1
0
+ 5
+ 3
+ 15
+ 16
3
—1
5 — 5
— 1
3
+ 5
— 1
3
9
— 4
+ 8
+
9
4
+ 7
+ 18
1
0
—2
3
+ 2
5

3
6

35

— 8
+ 8
— 15

+ 17
— 4

—

+

0

8
4

—
—

3
5

14

—

— 19

4

16

+ 13
— 11

5
4

+ 11
+ 21

+
+

5

—

1

+ 17

+ 12
— 6
+ 3

+
1
— 12
— 3

5

+

9

4

— 11

—

+

2

17
io

7

4

+

4
11
9
145

+

8

+

0

9

—

2

4- 16
— 6
— 3

+ 4
— 12
+ 4

3
16
66

DEBITS TO INDIVIDUAL BANK ACCOUNTS
(In Thousands oi Dollars)
Per Cent Change
N
ov.
Oct.
N
ov.
14
93
14
94
14
94
Area
Oct. 1 4 N 1 4
9 4 ov. 9 3
ALABAM
A
1 ,7 9
48
1 ,5 9
84
1 ,6 9
89
Anniston..............
16 ,5 6
63
13 8
9 ,0 6
19 2
8 ,7 1
Birmingham.........
8,694
1 ,1 8
09
9,2 1
6
Dothan................
1 ,5 0
00
1 ,1 3
21
1 ,0 9
20
Gadsden..............
10 3
3 ,7 5
13 0
2 ,3 1
13 7
1 ,9 8
42,460
4 ,7 1
20
43,505
M
ontgom
ery.........
FLORIDA
14 6
7 ,5 3
16 8
6 ,6 6
17 9
5 ,6 8
lacksonville.........
11 ,9 9
06
18 3
0 ,9 4
11 1
0 ,4 3
M
iami..................
14 0
5 ,6 5
14 ,0 9
50
16 9
2 ,8 1
.Greater Miami*.....
2
6,925
23,402
21,767
Orlando...............
2
3,394
22,954
22,003
Pensacola............
25,709
22,405
20,648
St. Petersburg.......
80,259
6 ,2 1
96
74,425
Tampa.................
GEORGIA
12 0
,7 7
Albany................
11 9
,0 2
10 0
,9 5
48 6
8,51
Atlanta................
492,164
442,369
34,030
Augusta...............
35,286
3
0,278
1 ,8 7
43
16 1
,7 9
Brunswick............
1 ,0 0
31
36,465
Columbus............
34,409
32 53
,7
2,09
5
27
,4 1
Elberton..............
16
,8 7
4
1,909
M
acon................
46,366
40,500
5,805
Newnan...............
5,318
4,486
8
3,828
8 ,0 1
60
84,724
Savannah............
7,079
6,905
7,275
Valdosta..............
LOUISIANA
4 ,1 1
21
Baton Rouge........
42,154
38,347
1 ,4 9
64
Lake Charles........
1 ,8 3
50
21,447
451,758
New Orleans........
4
50,468
402,776
MISSISSIPPI
Hattiesburg..........
1 ,8 4
64
1 ,5 1
31
.1 ,3 9
12
Jackson...............
52,877
50,000
48,738
Meridian..............
1 ,6 4
72
1 ,5 9
82
1 ,3 4
54
Vicksburg............
2
3,406
23,598
20,865
TENNESSEE
Chattanooga........
87,334
83 33
,5
86,845
Knoxville..............
11 9
1 ,7 3
19 1
0 ,2 8
8 ,8
0 62
Nashville..............
13 2
7 ,2 8
14 5
7 ,6 6
16 9
7 ,8 7
SIXTH DISTRICT
3 Cities............... 2,564,991 2,519,119 2,339,653
2
UNITED STATES
3 4 Cities.............. 77,706,000 73,861,000 65,025,000
3
* N t included in totals
o




Lakeland, Miami, and Orlando, Florida; Augusta and At­
lanta, Georgia; Baton Rouge and Lake Charles, Louisiana;
and Chattanooga, Kingsport-Bristol, and Nashville, Tennes­
see. A year earlier about the same number of District labormarket areas had relatively easy labor-supply situations.
^Banking figures are, perhaps, the best overall measure of
the District business situation in 1944. Between December 20,
1943, and December 20, 1944, the reserve deposits of mem­
ber banks in the Sixth District increased by 19 per cent and
totaled 625 million dollars on the latter date. Circulation of
Federal Reserve notes issued by the Atlanta Bank increased
by 35 per cent over the same 12 months, reaching 1,269 mil­
lion dollars on December 20, 1944.
The weekly reporting member banks in the Sixth District
recorded an increase of 12 per cent in demand deposits (ad­
justed) between mid-December 1943 and mid-December
1944, and their time deposits increased 30 per cent. The total
loans outstanding remained virtually unchanged, but invest­
ments increased 21 per cent over the year, owing chiefly to
an increase in the banks’ holdings of direct obligations of
the United States Treasury.

+
—
+
—

2
9
6
2

+2
6
+ 1
6
+ 7
+ 1
5
+ 1
5
— 1

+
+
+
+
+
+
+

1
1
2
7
1
5
2
1
5
1
6

+
+
+
+
+
+
+

5
9
2
2
2
4
6
2
5
8

+ 1
7
1
— 4
+ 1
4
+ 6
—1
5
—1
0
+ 9
— 3
+ 3

+ 1
5
+ io
+ 1
2
—1
1
+ 1
1
+ 1
2
+ 3
+2
9
— 1
— 3

—

0
+ 4
+ o

+ io
—2
3
+ 1
2

+2
5
— 5
— 5
— 1

+
+
+
+

—

+ 5
+ 2
1

+ 1
+3
8
— 2

+ 2

+ 1
0

— 5

+1
4

—

4
9
3
1
5
1
2

Postwar Planning
A* considerable amount of interest in postwar planning is
evident in the District, and during the year both official and
unofficial groups have devoted a great deal of attention to
the postwar economic problems that are already taking shape.
In Mississippi the 1944 legislature established an Agri­
cultural and Industrial Board, reviving the state-sponsored
industrialization program of 1936-40. Under the chairman­
ship of the governor, the board began operation effective
July 1 with 20 directors. The board plans to encourage the
location in Mississippi of industrial plants that will process
the state’s raw materials. The Georgia State Agricultural and
Industrial Board has had an active year. Ten postwar-plan­
ning meetings have been held by the Georgia board in
various points over the state as the first step in a five-year
program for the encouragement of industrialization. The
board is planning to pay particular attention to the problems
of the smaller communities of the state where there is as yet
no industrial activity.
Private firms have also in some instances announced post­
war plans. The Southern Bell Telephone and Telegraph
Company, for example, has announced that the extension of
rural service is to be one of its major postwar aims when ma­
terials again become available. Also, the Florida Power and
Light Company has made public announcement of plans for
the postwar construction of a $1,500,000 power plant in Sara­
sota. The new plant will have a generating capacity six times
larger than Sarasota’s present power consumption, for the
company foresees a tremendous postwar expansion in
Florida’s west-coast area.
An interesting private program begun in 1944 is that of
Cason Callaway who has sponsored the formation of 100
private farming corporations in Georgia. Each corporation
is composed of seven stockholders who have each invested
$1,000. These corporations plan to buy land and spend
several years building up the soil before engaging in com­
mercial farming operations. The purpose of the plan is pri­
marily to demonstrate the possibilities of profitable, diversi­
fied farming in Georgia on soil that has been properly de­
veloped for greater fertility.

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C u rre n t B a n k in g

S ix th D is tr ic t I n d e x e s

E v e n ts

close of this year, the Federal Reserve System had
. 316 member banks in the Sixth District. The number
thus was the same as that at the beginning of the year, but
several changes of one kind or another took place during
the intervening 12 months.
Two entirely new banks were admitted to membership.
These new banks were the Gulf National Bank of Gulfport,
Gulfport, Mississippi, which opened for business on August
7, and the Florida National Bank at Coral Gables, Coral
Gables, Florida, whose admission on December 28 is noted
below.
Three state member banks became national banks. The
American Bank and Trust Company of New Orleans on
January 4 became the National American Bank of New Or­
leans; the Brunswick Bank and Trust Company of Bruns­
wick, Georgia, on May 5 became the American National Bank
of Brunswick; and the Commercial Bank and Trust Com­
pany of Knoxville, Tennessee, on June 5 became the Com­
mercial National Bank. These conversions, of course, did not
affect the total number of member banks in the District, be­
cause the banks were already members under state charters.
Two nonmember state banks relinquished their state char­
ters during the year and obtained national charters, and they
thus became new members of the Federal Reserve System.
The first of these conversions was that of the Security Bank­
ing Company of Alexandria, Louisiana, which became the
Security National Bank of Alexandria on May 31. The sec­
ond conversion was that of the Attalla Bank into the First
National Bank of Attalla, Alabama, on November 1.
Three nonmember state banks were admitted into member­
ship during the year. The Progressive Industrial Bank, New
Orleans, Louisiana, was admitted on January 28; the Farm­
ers and Merchants Bank, Mount Pleasant, Tennessee, on
July 18; and the Middle Tennessee Bank, Columbia,
Tennessee, on August 28.
Two national banks of the District went into voluntary
liquidation. The first of these was the First National Bank
of Milledgeville, Milledgeville, Georgia, which announced its
voluntary liquidation on October 26. The second was the
Lineville National Bank, Lineville, Alabama, which an­
nounced its voluntary liquidation on December 12.
Five state banks voluntarily withdrew from membership
during the year. These were the Bank of Millen, Millen,
Georgia; the Bank of Soperton, Soperton, Georgia; the Bank
of Commerce, Clayton, Alabama; the Bank of Canton, Can­
ton, Georgia; and the Blackshear Bank, Blackshear, Georgia.
These banks all withdrew from membership in order to
charge exchange on incoming cash letters.
►In summary, therefore, changes for the year in System
membership in the Sixth District included seven additions
and seven withdrawals. The additions to membership were
represented by two organizations of national banks, two con­
versions of nonmember banks to national banks, and three
admissions of state banks. The losses of membership were
represented by two voluntary liquidations and five withdraw­
als of state banks.
The number of member banks in the Sixth Federal Reserve
District, using year-end figures, reached its highest point in
1922 when there were* 536 member banks out of a total of
2,045 banks in the District. Since that time the number has

A

DISTRICT..........
Atlanta...........
Baton Rouge...
Birmingham--Chattanooga...
Jackson..........
Jacksonville--Knoxville.......
M
acon...........
M
iami............
Montgomery...
Nashville........
New Orleans...
Tampa...........

DEPARTM
ENT STORE SALES*
Adjusted**
Unadjusted
N
ov.
Oct.
Nov.
Nov.
Oct.
N
ov.
14
94
14
93
14
94
14
94
14
94
14
93
29
6
20
6
20
2
35
1
23
7
27
5
37
2
27
5
21
8
38
4
26
8
24
7
28
8
27
3
36
0
26
3
29
7
20
5
27
6
26
2
23
2
38
0
24
5
22
5
28
6
29
4
25
2
30
0
23
6
21
5
24
6
27
5
22
1
29
4
30
1
25
8
37
7
29
9
32
1
49
0
33
5
35
2
31
4
29
3
36
6
27
5
38
1
39
2
24
5
22
3
23
9
27
6
28
5
25
7
22
4
16
9
29
1
21
5
20
8
15
9
22
0
24
3
27
6
25
6
30
1
20
8
23
7
23
4
32
3
26
6
33
0
28
8
24
0
22
8
27
3
22
4
28
4
25
5
27
9
24
5
39
4
20
9
30
0
25
9

DISTRICT..........
Birmingham_
_
Montgomery..
Nashville........
New Orleans...

DEPARTM
ENT STORE STOCKS
Adjusted**
Unadjusted
Nov.
Oct.
Nov.
Oct.
N
ov.
Nov.
14
94
14
94
14
93
14
94
14
94
14
93
17
7
18
9
12
6
24
0
17
8
22
2
24
6
27
9
27
5
20
2
31
0
25 :
5
17
4
13
3
11
3
16
5
15
6
14
5
20
1
12
9
21
3
27
2
18
9
24
2
34
0
247
27
8
24
8
30
3
39
4
13
4
19
0
12
5
11
6
10
4
15
3

t th e




1 1 3

COTTON CONSUM
PTION*
Nov.
Oct.
N
ov.
14
94
14
93
14
94
TOTAL.............. 1 0
6
11
5
18
6
14
7
Alabama........
13
6
18
5
Georgia.........
11
5
18
6
11
6
19
2
Tennessee.....
17
3
10
4

COAL PRODUCTION*
N
ov.
Oct.
Nov.
14
94
14
94
14
93
13
6
18
5
13
4
11
7
12
5
16
6
i46
i27
19
3

MANUFACTURING EMPLOYMENT***
September
August
14
94
14
94
12
6
18
5r
SIX STATES...............................
11
9
18 r
8
14
7
18
6r
16
4r
17
4
17
7
17 r
1
Louisiana................................
11
5r
16
5
Mississippi..............................
10
4
13 r
7
Tennessee..............................

DISTRICT..........
Residential.....
Alabama........
Georgia.........
Louisiana.......
Mississippi.....
Tennessee.....

CONSTRUCTION
CONTRACTS
Nov.
Oct.
Nov.
94
14
93
1944.. 1 4
7
2
10
1
6
8
7
6
9
8
4
0
16
1
65r
8
2
9
9
8
0
17
0
7
2
16
2
6
0
6
4
12
3
15
4
3
6
4
8
7
8
1
1
8
2
3
12
4
5
8
5
1

COST OF LIVING
Oct. Sept. Oct.
14
94 14
93
94 14
ALL ITEMS.. 1 1
2
3
13f‘ 1 9
Food....... 1 3
4
15
4
15
4
Clothing... 1 9
3
13
3
19
3
Rent........ 1 4
1
14
1
14
1
Fuel, elec­
tricity,
and ice.. 1 9
18
0
0
19
0
H e fur­
om
14
2
nishings. 1 9
3
19
3
Miscel­
10
2
laneous. . 1 6
16
2
2
CRUDE PETROLEUM PRODUCTION
IN COASTAL LOUISIANA AN
D
MISSISSIPPI*
Nov. Oct. N
ov.
14
94 14
93
94 14
Unadjusted.. 2 5
12
9
0
22
0
Adjusted**... 2 2
0
23
0
10
9

September
14
93
19
5
12
9
18
7
13
4
11
6
16
4
11
4

GASOLINE
TAX COLLECTIONS***
Nov.
Nov.
Oct.
14
94
14
93
14
94
9
7
14
0
9
6
11
1
8
8
9
8
16
0
17
0
10
2

19
0
8
8
13
0
17
0
8
7
9
1

14
0
7
8
8
8
11
0
15
0
14
2

ELECTRIC POWER PRODUCTION*
Oct. Sept. Oct.
94 14
93
14
94 14
SIX STATES.. 2 3
6
22
5
20
7
Hydro­
generated. 2 2
1
18
9
26
0
Fuel
32
2
generated. 3 1
3
33
5
ANNUAL RATE OF TURNOVER OF
DEM
AND DEPOSITS
Nov. Oct. Nov.
93
14
94 14
94 14
Unadjusted.. 16
.7 1 .1 1 .1
6
8
7
Adjusted**... 1 .8 1 .2 1 .L
5
6
Index**....... 60.9 62.7 66.2
*Daily average basis
**Adjusted for seasonal variation
***1939 m
onthly average=100; other
indexes, 1935-39=100
r=Revised

1 1 4

M

o n t h l y

R e v ie w

o f th e F e d e ra l R e s e rve B a n k

S ix th D is t r ic t S t a t is t ic s

INSTALM
ENT CASH LOANS
Num
ber
Reporting

Lender
Federal Credit Unions...............
State Credit Unions...................
Industrial Banking Companies.....
Personal Finance Companies.......
Commercial Banks.....................

4
3
2
5
4
2
5
0
3
4

Per Cent Change
Oct. 1 4 to Nov. 1 4
94
94
Outstandings
Volume
+ 3
+ 1
—3
+5
5
+3
+ 1
+2
+ o
+3
+ 0

RETAIL FURNITURE STORE OPERATIONS
Item
Total Sales.................................
Cash Sales.................................
Instalment and Other Credit Sales..
Accounts Receivable, end of m
onth.
Collections during m
onth..............
Inventories, end of month.. ..........

N ber
um
o
f
Stores
18
0
9
7
9
7
15
0
15
0
8
3

Per Cent Change
N
ovem 1 4 , from
ber 9 4
93
Oct. 1 4
9 4 Nov. 1 4
+2
9
+ 1
+2
9
— 0
+3
2
+ 6
+ 4
— 1
+ 1
1
—1
1
— 9

CONDITION OF FEDERAL RESERVE BANK OF ATLANTA
(In Thousands oi 'Dollars)
Item

U. S. securities, direct and
guaranteed..................
Total bills and securities.
M ber bank reserve
em
Foreign bank deposits.....
Total reserves..................

Per Cent change
Dec. 20, 19 4 irom
4,
Dec. 20, Nov. 22, Dec. 22,
2
14
94
14
94
14
9 3 Nov. 2 Dec. 2
2
14
94
14
93
4,000
4,903
22 — 4 —9
2
2
2
0
2
3
96 2 9 2 1 563,554 + 3
7,47
+7
2
4 ,5 1
96 4 947,437 567,776 + 2
7,49
+7
0
9,20
+3
5
1,269,030 1,237,949 93 2 + 3
+2
2
605,936 511,609 + 3
62 8
5,12
3
30,020 21,334 81,276 + 4
1 —6
—2
4
36,817 38,936 48,618 + 6
3,55
1
3,628 — 3 — 5
3,432
53
695,398 669,757 64 ,1 1 + 4
+ 8
7 ,1 1
955,800 946,356 9 4 0 + 1 — 2

CONDITION OF 2 M BER BANKS IN SELECTED CITIES
0 EM
(In Thousands o Dollars)
f
Item

Per cerit change
4
3 9 4 from
5
Dec. 1 , N 1 , Dec. 1 . Doc. 1 ,
3 ov. 5
ov. 5
14
9 3 N 1 . Dec. 1 ,
5
14
94
14
94
14
94
14
93

Loans and Investm
ents—
Total........................... 1,792,022
Loans—
Total................... 361,015
Commercial, industrial
1 ,1 1
and agricultural loans.. 2 1 7
Loans to brokers and
6,954
dealers in securities....
Other loans for pur­
chasing and carrying
securities..................
51 48
,7
Real estate loans...........
23 9
,8 1
2 8
,27
Loans to banks..............
64 73
,9
Other loans..................
,431,007
Investments—
Total........... 1
,2 9 1
U. S. direct obligations... 1 8 ,1 1
Obligations guaranteed
by U. S....................
1 ,4 1
90
Other securities............ 1 2 9
2 ,4 5
Reserve with F. R. Bank.... 323,950
Cash in vault..................
29,880
Balances with dom
estic
20
banks.......................... 17 ,0 0
Dem deposits—adjusted 1,125,804
and
Tim deposits.................. 320,239
e
U. S. Gov't deposits.......... 244,939
Deposits of dom
estic banks. 528,720
Borrowings.....................




1,7 2 0 1,545,459
1 ,3 1
54
3
27,042 36 ,5 1 + io
201,019 216,489 + 5
58
,3 1
9,867 + 2
9

+ 1
6
1
— 2
—3
0

29 85
,8
2
3,447
1,0 2
0
66 08
,3
1,385,259
1,241,829
1 ,4 2
90
14 2
2 ,0 8
333,677
2
7,256
13 4
4 ,8 3
1,156,107
318,614
10 7
3 ,1 7
510,609
3,000

+8
1
—1
7
+
.107
—1
9
+2
1
+2
7
—6
0
+ 8
+ 1
4
+ 1
3
+ 1
3
+ 1
2
+3
0
+2
6
+ 1
2

28 73
,5
28,799
10
,1 3
80,710
1,179,918
1,017,722
48,792
11 ,4 4
31
28 8
4,96
26,386
15 ,9 9
16
1,00 86
8,9
2
45,999
14 4
9 ,7 0
471,510
3,000

+7
3
+1 7
2
— 2
+ 3
+ 4
— 0
— 1
— 3
+ io
+2
0
— 3
+ 1
+8
8
+ 4

o f A t la n t a f o r D e c e m b e r 1 9 4 4

gradually declined, but the number of nonmember banks has
declined even more. Thus at the close of 1933 the low point
in membership, the member banks numbered 309 out of a
total of 1,055. Member banks had risen from 26.2 per cent of
the total at the end of 1922 to 29.3 per cent at the close of
1933. Numbering 315 on June 30, 1944, the district member
banks were 30 per cent of the total, the highest proportion
ever reached since the organization of the Federal Reserve
Bank of Atlanta in 1914.

Lake Worth Bank Increases Capital
The First National Bank in Lake Worth, Lake Worth,
Florida, increased its capital stock, effective December 15,
from $50,000 to $200,000. Of this increase, $50,000 repre­
sented the sale of additional shares at par and $ 100,000 a
stock dividend. Under the new capitalization the shares of
stock have a par value of $10 each and the number of shares
outstanding is 20,000.
The bank was first organized in 1936. Wiley R. Reynolds
is chairman of the board, Roy E. Garnett is president, and
John A. Boardman, Robert E. Conn, and R. S. Erskine are
vice presidents. Directors of the bank are: W. E. Arnold,
H. H. Bassett, R. E. Conn, R. S. Erskine, R. E. Garnett,
Annette H. Reynolds, Wiley R. Reynolds, Wiley R. Reynolds,
Jr., and Bert Winters.
Lake Worth had a 1940 population of 7,408. It is located
in Palm Beach County seven miles south of West Palm
Beach. In normal times, the business life of the city is based
largely upon the tourist trade.

New Member Bank Organized
The Florida National Bank at Coral Gables, Coral Gables,
Florida, opened for business on December 28, 1944. The
bank has a capital of $100,000 and a surplus of $25,000.
Officers of the bank are: George A. Chatfield, president;
R. C. Brown, vice president and cashier; and William C.
Swain, assistant cashier. Serving as directors of the bank are:
George A. Chatfield, L. A. Usina, R. C. Brown, Ernest J. C.
Doll, J. Lamar Paxson, Oscar E. Dooly, Jr., and H. E. Moredock, Sr.
Coral Gables, with a 1940 population of 8,294, is a part
of Greater Miami. It adjoins Miami on the west and south.
Founded during the real-estate boom of the 1920’s, the city
has a distinctive character, largely the result of restrictions
that require buildings in the business area to conform to the
Mediterranean style of architecture.

—

Election of Directors
Frank H. Neely, chairman of the Board of the Federal
Reserve Bank of Atlanta, announced on November 29 that
George J. White, president of the First National Bank of
Mount Dora, Mount Dora, Florida, had been re-elected by
member banks in Group 3 as a Class A director of the Fed­
eral Reserve Bank of Atlanta, and that Ernest T. George,
president of the Seaboard Refining Company, Ltd., New Or­
leans, Louisiana, had been re-elected by the member banks
in Group 1 as a Class B director. Each was chosen for a term
of three years, beginning January 1, 1945.
Chairman Neely in December also announced the appoint­
ment of a director for each of the four branches of the Fed­
eral Reserve Banjc of Atlanta. Reappointed to new three-year

M

o n t h l y

R e v ie w

o f t h e F e d e r a l R e s e rv e B a n k o f A t la n t a f o r D e c e m b e r 1 9 4 4

terms were: Gordon D. Palmer, president, First National
Bank of Tuscaloosa, Tuscaloosa, Alabama, to serve as direc­
tor of the Birmingham Branch; J. L. Dart, president, Florida
National Bank of Jacksonville, Jacksonville, Florida, to serve
as a director of the Jacksonville Branch; B. L. Sadler, presi­
dent, First National Bank in Harriman, Harriman, Tennessee,
to serve as director of the Nashville Branch; and J. F. Mc­
Rae, president, Merchants National Bank of Mobile, Mobile,
Alabama, to serve as a director of the New Orleans Branch.
Reappointed to seiVe Tor another one-year term as a mem­
ber of the Federal Reserve Advisory Council for the Sixth
Federal Reserve District was Keehn W. Berry, president of
the Whitney National Bank of New Orleans, New Orleans,
Louisiana.
The Board of Governors of the Federal Reserve System
also announced in December its appointments of directors for
the Federal Reserve Bank of Atlanta.
Reappointed for
another three-year term as a Class C director was Frank H.
Neely, executive vice president and secretary of Rich’s, Inc.,
Atlanta, Georgia. Mr. Neely was also designated by the Board
of Governors to serve for 1945 as chairman of the Board of
Directors and as Federal Reserve Agent of the Federal
Reserve Bank of Atlanta.
Reappointed to the board of directors of the Birmingham
Branch was Donald Comer; of the Jacksonville Branch,
Walter J. Matherly; and of the Nashville Branch, Clyde B.
Austin. Each of these branch directors was appointed for a
three-year term beginning January 1, 1945. Mr. Comer is
chairman of the board of the Avondale Mills, Birmingham,
Alabama; Mr. Matherly is Dean of the College of Business
Administration at the University of Florida, Gainesville.
CLASSIFICATION OF M BER BANKS IN THE SIXTH FEDERAL
EM
RESERVE DISTRICT AS OF DECEMBER 31, 1 4
94
State
Alabama....................................
Florida......................................
Georgia.....................................
Louisiana..................................
Mississippi.................................
Tennessee.................................
TOTAL....................................

National
Banks

State
Banka

67
55
47
22
14
59
264

17
5
12
7
3
8
52

Total
84
60
59
29
17
67
316

TOTAL DEPOSITS OF SIXTH DISTRICT M BER BANKS, JUNE 30. 1944
EM
(In Thousands of Dollars)
State
Alabama................
Florida..................
Georgia.................
Louisiana...............
Mississippi..............
Tennessee..............
TOTAL...............

N em Banks
onm ber
M ber Banks
em
Cent
Cent
Deposits PerTotal Deposits PerTotal
of
of
750,456
1,026,145
1,062,172
728,773
192,123
737,798
4,497,467

84
76
81
82
57
80
79

137,678
316,211
253,146
154,758
144,827
185,032
1,191,652

16
24
19
18
43
20
21

Total
888,134
1,342,356
1,315,318
883,531
336,950
922,830
5,689,119

MEM AND NONM BER SIXTH DISTRICT BANKS, TUN 30,1944
BER
EM
E
State
Alabama................
Florida..................
Georgia................
Louisiana...............
Mississippi..............
Tennessee..............
TOTAL................

M ber Banks
em
N em Banka
onm ber
Cent um
Cent
N ber PerTotal N ber PerTotal
um
of
of
83
60
62
29
16
65
315




38
35
21
35
17
33
30

134
113
231
55
79
130
742

62
65
79
65
83
67
70

Total
217
173
293
84
95
195
1,057

1 1 5

Florida; and Mr. Austin is president of the Austin Company,
Inc., Greeneville, Tennessee.

Additions to Par List
The J. C. Jacobs Banking Company, Inc., of Scottsbdro,
Alabama, will be added to the Federal Reserve Bank Par
List on January 1, 1945. Effective on that date, the bank will
remit to the Birmingham Branch of the Federal Reserve Bank
of Atlanta at par for checks drawn upon it by its depositors.
Officers of the bank are: H. G. Jacobs, president; E. P.
Jacobs, vice president; R. A. Jacobs, cashier; and J. C. Jacobs
II and Rachel Gold, assistant cashiers. The Bank has a capi­
tal of $50,000, surplus and profits of $72,000, and deposits
in excess of $ 1,000,000.
Scottsboro, a town of 2,834 in 1940, is located in Jackson
County, which is in the northeastern corner of the state, ad­
joining Tennessee and Georgia. Its business life is based pri­
marily on the trade of farmers located in the surrounding
area.
Another bank that is to go on the Federal Reserve Par List
on January 1, 1945 is the Hiwassee Bank of Charleston, Ten­
nessee. This bank will thus become one upon which checks
will be received by Federal Reserve Banks for collection and
credit. The routing of such checks will be through the Nash­
ville branch of the Federal Reserve Bank of Atlanta.
This bank was founded in 1906, and currently it has a
capital of $40,000 and surplus and undivided profits of
$25,000. E. A. Edwards is chairman of the board of directors,
J. E. Quisenberry is president and cashier, J. H. Epperson is
vice president, Mrs. Mae Dillard is assistant cashier, and
Charles S. Mayfield is counsel. In addition to Messrs. .Ed­
wards, Epperson, and Quisenberry, the board of directors in­
cludes C. C. Hambright, W. H. Moore, N. R. Wilson, and
Wood Wilson.
Charleston in 1940 had a population of 586. It is situated
in Bradley County about 40 miles to the northeast of Chat­
tanooga.

Conversion of State Bank to National Bank
Effective January 2, 1945, the Commercial Bank of Cedartown will be converted into the Commercial National Bank,
Cedartown, Georgia. Officers of the bank are Carden C. Bunn,
chairman 6f the board of directors, Roy N. Emmet, Sr., pres­
ident, W. K. Holmes, vice president, George D. Collins, cash­
ier, and H. J. Hedgepeth, assistant cashier. Serving with Mr.
Bunn on the board are Mr. Emmet and Mr. Holmes. The re­
maining members of the board are Robert Campbell, Marcus
M. Cornelius, S. S. Horton, J. A. Morton, Henry A. Stewart,
and Glenn T. York. This bank dates from 1889. It now has
a capital of $140,000 and surplus and profits of $100,000.
Operating under a national charter, the Commercial
National Bank will automatically become a member of the
Federal Reserve System. The addition of this bank will raise
the total number of member banks in the Sixth Federal Re­
serve District to 317.
Cedartown had a population of 9,025 in 1940. It is the
county seat of Polk County and is located near the Alabama
line about 60 miles northwest of Atlanta. In addition to be­
ing a trading center for a rich agricultural area, Cedartown
has a number of industrial plants manufacturing cotton duck,
tire cord, and wearing apparel. Located near by, as well, are
five iron-ore surface mines.

1 1 6

M

o n t h l y

R e v ie w

o f th e F e d e ra l R e s e rv e B a n k

o f A tla n ta

fo r D ecem ber 1944

The National Business Situation
O

u t p u t at factories and m in es show ed little change from

O ctober to N ovem b er. R etail trade exp an d ed further to
new -record lev els.

Industrial Production
In dustrial output in N o vem b er and the ea rly part o f D e ­
cem ber w as m ain tain ed at a p p ro x im a tely the sam e lev e l that
had p revailed d u rin g the p rev io u s fo u r m onths. P rod u ction
o f d u rab le g o o d s d eclin ed slig h tly in N ovem b er, w h ile output
o f other m an ufactu red go o d s, e sp e c ia lly w ar su p p lies, in ­
creased som ew hat further, and m in eral p rod u ction w as m ain ­
tained in large volu m e. O utput o f critica l w ar eq u ip m en t w as
larger in N ovem b er than in O ctober but w as still b ehind
sch ed u le, accord in g to the W ar P rod u ction Board.
A ctiv ity in the d u ra b le-g o o d s in d u stries, p a rticu la rly m a­
ch in ery, transportation eq u ip m en t, and lum ber, con tin u ed to
be lim ited in part b y m an p ow er sh ortages. E m p loym en t in
the transp ortation-equ ip m en t in d u stries has d eclin ed by about
one fifth during th e p ast 12 m onths, but to tal output o f a ir­
craft, sh ip s, and com bat and m otor v e h icles has d eclin ed by
a m uch sm a ller am ount o w in g to greater efficiency.
In m ost non d u rab le-g o o d s in d u stries, p rod u ction w as so m e­
w hat greater in N ovem b er than in the p reviou s m onth. A c­
tiv ity at e x p lo siv e and sm all-arm s am m u n ition p lan ts in ­
creased, reflecting en la rg ed w ar-p rod u ction sch ed u les, and
outp ut in m ost other b ranches o f the ch em ical in du stry a lso
exp an d ed , reach in g le v e ls ab ove th ose o f a year ago. P ro d u c­
tion in the p etroleum -refin in g and rubber in d u stries, ch ie fly
fo r w ar uses, in creased som ew hat in N ovem b er.
O utput o f m anufactured fo o d s show ed less d eclin e than is
usu al fo r th is season and w as as la rg e as in N o vem b er 1 943.
In th e te x tile ind ustry, ou tp u t at w o o len and w orsted m ills
continu ed to advance in O ctober fro m the reduced lev el o f
op eration s p rev a ilin g d u rin g the sum m er. C otton con su m p ­
tio n in N ovem ber w as above O ctober and rayon d eliv eries
w ere at a new record lev e l.
M ineral p roduction w as m ain tain ed in N ovem b er. Coal ou t­
put w as on e fifth larger than in N ovem b er 1 9 4 3 , w hen o p er­
ation s w ere sh arp ly reduced b y a w ork sto p p a g e. In th e early

part o f D ecem b er, h ow ever, c o a l p ro d u ctio n w as n early 10
per cent less than in the sam e p erio d la st year.
V a lu e o f d ep artm ent-store sa le s in N ov em b er w as 14 per
cent ab ove th e e x c e p tio n a lly h ig h le v e l la st year, about the
sam e year-to-year in crea se w h ich p rev a ile d in the previou s
fou r m onths. In th e first h a lf o f D ecem b er, sa le s w ere about
20 per cen t larger th an la st year. A ll F ed eral R eserve d is­
tricts have sh ow n la rg e in crea ses over la st year in pre-Christm as sa les.
R ailro a d fr eig h t ca rlo a d in g s, a d ju sted fo r sea son al changes,
were m ain tain ed at a h ig h le v e l in N o v em b er and the first
tw o w eeks o f D ecem b er. S h ip m en ts o f m ost cla sses o f freigh t,
how ever, w ere not q u ite as great as the e x ce p tio n a lly large
m ovem ent o f freig h t d u rin g th e sam e p erio d la st year.

Bank Credit
B an k in g d ev elo p m en ts d u rin g th e fo u r w eek s en ded D ecem ­
ber 13 w ere la rg e ly determ in ed b y th e S ix th W ar L oan D rive.
G overnm ent d ep o sits at w eek ly rep o rtin g b an k s in 101 cities
in creased b y a p p r o x im a tely 8 b illio n d o lla r s w h ile adjusted
dem and d ep o sits o f in d iv id u a ls and b u sin ess w ere drawn
dow n about 2 .6 b illio n s in p aym en t fo r secu rities purchased.
T h e rep ortin g banks added 3 .7 b illio n d o lla r s to th eir h o ld ­
in g s o f G overnm ent secu rities and in creased their loan s by
1.7 b illio n .
A s a resu lt o f the tra n sfer o f d ep o sits o f in d iv id u a ls and
b u sin esses to w ar-loan accou n ts, reserves required b y m em ber
banks d eclin ed about 7 0 0 m illio n d o lla r s fro m the b egin n in g
o f the drive th rou gh m id -D ecem b er. In ad d itio n , reserve fu n d s
w ere su p p lie d to th e b a n k in g system th rou gh th e p urchase by
the F ed eral R eserve B anks o f 6 4 0 m illio n d o lla rs o f G overn­
m ent secu rities. T h ese a d d itio n a l reserves w ere used in part to
reduce m em ber-bank b o rro w in g s at the R eserve B anks, w hich
had risen to n ea rly 6 0 0 m illio n d o lla r s in th e latter part o f
N ovem b er, an d to m eet th e dem and fo r currency. T h is d e­
m and, th ou gh slack en ed som ew h at b y th e W ar L oan D rive,
am ounted to 4 5 0 m illio n d o lla r s fo r th e fo u r w eeks ended
D ecem b er 13. E xcess reserves in creased b y 3 0 0 m illio n d o l­
lars, p r in c ip a lly at cou n try banks.

( This page was written by the staff of the Board of Governors of the Federal Reserve System)

INDUSTRIAL PRODUCTION

Federal Reserve indexes. Groups are ex­
pressed in terms of points in the total
index. Monthly figures, latest shown are
for November.




GOVERNMENT SECU RITY HOLDINGS OF BANKS IN LEADING C IT IE S

MEMBER BANKS IN LEADIN 6 C IT IE S

Excludes guaranteed securities. Data not
available prior to February 8, 1939; cer­
tificates first reported on April 15, 1942.
W ednesday figures, latest shown are for
December 13, 1944.

Demand deposits (adjusted) exclude U .S .
Governm ent and interbank deposits and
collection items. Governm ent securities
include direct and guaranteed issues.
W ednesday figures, latest shown are for
December 13, 1944.