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Monly th FED ER A L Volume X X X I Review R ESER V E OF ATLAN TA Number 12 Atlanta, Georgia, December 31, 1946 D is tr ic t B u s in e s s B oth incomes and living expenses during October estab lished new highs for the year. Moreover, the value of department store sales in December will probably be the highest ever recorded in the Sixth District, though the Novem ber value exceeded the October figure only slightly. In con trast, the December 1 estimate of District cotton production brings the 1946 yield down 5,000 bales further to the short est crop in 23 years. Textile mills, on the other hand, during November consumed the greatest amount of cotton for any month during the past four years, in anticipation of a power shortage because of the coal miner’s strike. At the end of the strike the crippled steel mills began a fairly rapid return to normal activity. Seventeen days after the miners resumed work, production had reached 95 percent of capacity. Farmers from eight Georgia counties gathered in Waycross on December 5 for a meeting of considerable significance to tobacco growers in the southeastern part of the state. Initiated by the First National Bank in Waycross, the meeting was in the nature of a tobacco clinic. Its purpose was to edu cate tobacco growers in the importance of taking early and adequate steps for the control of blue mold. The address was made by J. G. Gaines, plant pathologist at the Tifton Experiment Station, who discussed the economic implications of blue mold infestation and the approved methods of con trolling it. Blue mold wrought enough havoc in the tobacco beds of Southeast Georgia this past season to arouse considerable interest among farmers in proper methods of control. Because the disease made heavy inroads in the tobacco beds it be came necessary for farmers and others acting in their behalf to scour the tobacco belt for plants grown elsewhere, which were, however, available only at high prices. This procedure, Dr. Gaines said, delayed the appearance of Georgia tobacco on the market and caused the crop to be sold at about five cents a pound less than the tobacco in neighboring states. Georgia tobacco farmers, it has been estimated, lost approxi mately five million dollars because of this adverse differential. An expenditure of only 100 thousand dollars for suitable spraying materials, on the other hand, would have protected all the beds. Blue mold is a microscopic plant that lives both in the tobacco plant and in the soil. Once established, it can prob ably never be completely eradicated. Though it is particularly damaging only in certain years, the farmer must, Dr. Gaines emphasized, guard his crop against the disease with suitable protective measures every year. Farming is always a gamble, of course, but the farmer should take no more risks than he has to. Especially should he refrain from gambling his money away on nostrums. This year, Dr. Gaines said, Georgia BANK C o n d itio n s farmers spent close to 700 thousand dollars fighting blue mold with worthless methods. Each year the Federal and state governments spend a great deal of money to develop the best scientific methods for fighting plant disease and other pests. Information on these methods is available from the state experiment stations. For their own interest, farmers should learn to make use of it. The Waycross tobacco clinic was significant for another reason. Although it was actively promoted by the chamber of commerce and the county agents and other persons, the idea originated in a bank that had already demonstrated its interest in the farmers of its area, by spending hundreds of dollars to help them find badly needed tobacco plants last spring. The intelligent interest displayed by the First National Bank in Waycross in the economic welfare of its customers and po tential customers is something for other banks to emulate. The prosperity of a bank is something that comes about indirectly— by engaging in activities calculated to further the economic welfare of the people upon whom the bank depends for its business. Agriculture Cotton production in the six states of this district accounted for 3,160,000 bales of the national crop of 8,482,000 bales in the 1946 season, according to the latest monthly estimate of the U. S. Department of Agriculture. Indications are that the national crop is about one-third smaller than the 10-year average and now only 537,000 bales larger than the short crop of 1921. Only twice in more than 40 years— in 1923 and 1921— have the Six States produced crops smaller than the current crop. During this long period neither Georgia nor Florida has had a crop as small as its 1946 crop, and only once— in 1910— has Louisiana had one as small as the one it has this year. The Six-State total is 21 percent less than the 1945 crop. For the individual states, Tennessee had a 9 percent increase over its 1945 crop, but decreases in the other states ranged from 16 percent in Alabama and 17 percent in Georgia to 33 percent in Mississippi, 35 percent in Louisiana, and 37 per cent in Florida. Between the time of the first estimate for the season, on August 1, and the last, on December 1, there was a reduction of 13 percent in those estimates for the Sixth District states. Excessive rains in midsummer were followed by attacks of boll weevils, but the weevil damage was not fully apparent until picking was well under way. This year’s cotton is of a better grade than last year’s, however, and the staple is longer. Though more tobacco, white potatoes, and citrus fruits were produced this year than last, there were declines in most other crops. The pecan crop was smaller by 38 percent than 1 2 6 M o n t h l y R e v ie w o f th e F e d e r a l R e s e rv e B a n k o f A tla n ta f o r D e c e m b e r 1 9 4 6 it was in 1945. In Georgia, the largest pecan-producing state of the District, this year’s crop falls short of last year’s by more than a half. The current estimate of Florida’s citrus crops for this season indicates a production of 61 million boxes of oranges, compared with 49.8 million boxes for the 1945-46 season and 34 million boxes of grapefruit, an increase of 6 percent over last season’s 32 million boxes. The weather in Florida during November was not as favorable as it was earlier in the season. There was too much rain, and there was some hot weather. The storm early in November worked little apparent damage at the time but evidently caused the heavy dropping that occurred later in the month. In Louisiana the estimated crop of oranges this season is placed at 360,000 boxes, an increase of 30,000 over the state’s 1945-46 crop. Trade The rapidly rising trend of sales at Sixth District department stores during most of the months of 1946 was not continued in November. Although the estimated 50 million dollars worth of goods these stores sold during November brought the seasonally adjusted index of daily average sales to 348, a figure one point higher than that for October and 58 points above that for November 1945, this year’s index for Novem ber was considerably less than that for September, when sales were 367 percent of the 1935-39 average, the highest point the index ever reached. The department stores did 20 per cent more business this November than they did in November 1945. For the same period furniture store sales were 29 per cent higher and those at jewelry stores were slightly lower than they were in November 1945. There is little doubt, however, that the actual dollar volume of sales in December will exceed that of any other month during 1946. Normally December is the year’s greatest retailselling month. Weekly reporting stores indicate that this December’s sales will also exceed those of last year. After adjustment is made for seasonal variation the index of the daily average sales will probably be higher than that for any December on record, in fact. It may not, however, reach the record level of September. Events in the first two weeks of December at the weekly reporting stores indicate that the month’s seasonally adjusted index for the District will be about 353. It is possible, of course, that buying during the last weeks of December may raise it. Although extraordinarily high increases above the previous year’s sales have continued in some lines, such as household appliances, radios, housefurnishings, and silverware, in creases in other lines have not kept pace with the record set in the first half of 1946. Even though the Sixth District stores reporting their sales and stocks by departments had an in crease of 20 percent in the amount of their store-wide sales in October above that of the previous year, sales of women’s and misses’ clothing were up only 10 percent, men’s and boy’s clothing 7 percent, piece goods 16 percent, and jewelry 8 percent— all below the percentage increase for total sales at these stores. Higher prices account for a part of the increase in report ed sales. For the same types of goods the stores’ customers paid an average of 18 percent more this year than they did last year, according to the United States Department of Com merce’s index of retail prices. Prices in October were reported to be 67 percent higher than those of the base period 1935-39. With the elimination of this difference in prices from the reported sales, the seasonally adjusted index of department store sales for November stands at 208 instead of the unde flated 348. The Bureau of Labor Statistics reports that families of moderate incomes in the Sixth District paid 2 percent more in October for living essentials than they did in September. For the Sixth District the index of consumer prices, which is a weighted average of the index for six large cities, was 152 percent of the 1935-39 average. The chart shows the rapidity DEPARTMENT STORE SALES AND STOCKS CONSUMER PRICE INDEX Department store sales on a seasonally adjusted basis reached their peak in September of this year. The index in that month was the highest on record. Stocks, however, continued to advance after September. The data for November are the latest shown. After remaining comparatively stable during the war years prices of commodities and services purchased by moderate-income families in Sixth District cities rose rather sharply after hostilities ended. The data for October are the latest shown. M o n t h l y R e v ie w 1 2 7 o f th 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 6 of price advances in recent months. Between the first of the year and the last date shown the cost of all items rose 13 percent. Prices paid for food registered the greatest increase, most of it occurring after food-price decontrols were begun. Food sold on an average at prices 26 percent higher in Octo ber than those in January. Clothing was up 13 percent, and housefurnishings 12 percent. Because of the retention of controls, reported rents were practically unchanged. The cost of fuel, electricity, and ice advanced only 3 percent. The food bill for the average moderate-income family in the Dis trict was 61 percent higher in October than it was in the month in which the United States entered the war. It was also 87 percent higher than it was when the war in Europe broke out. A further increase between October and Novem ber in large cities throughout the country of 4.5 percent in the cost of food and of 2 percent in all items has been an nounced by the Bureau of Labor Statistics. General indexes of prices, of course, conceal the wide variations in the price changes both in different classes of commodities and in the particular commodities within these classes. Even during a period of generally advancing prices, some commodities may decline in price. Some of these dif ferences are shown in recent changes in the various indexes. Although the Department of Commerce’s index of retail prices for October showed a general increase of 18 percent above the level of prices for October 1945, the United States Department of Labor’s wholesale-commodity-price index had risen 27 percent during the same period. The prices of vari ous classes of wholesale commodities also showed variations. Farm products, for example, were reported to have risen 30 percent, commodities other than farm products 26 percent, foods 49 percent, and commodities other than foods 16 per cent. Within the group of commodities classified as other than farm products, increases ranged from 5 percent for chemicals and allied products to 27 percent for textile products. Recent levels of retail trade throughout the nation have been sustained by a high level of income payments. Accord ing to the Department of Commerce, during the first 10 months of 1946 income payments to individuals in the United States were equivalent to an annual rate of 163 billion dollars — approximately one percent more than the rate for the first 10 months of 1945. The rate of payments for October, how ever, was much greater than this. After allowance is made for seasonal influences, payments during October would pro vide an annual rate of 172 billion dollars, compared with the 161-billion-dollar total in 1945. Finance In response to the needs of business, weekly reporting mem ber banks in the Sixth District continued to expand their commercial, industrial, and agricultural loans during Novem ber. By December 11, however, the outstanding loans held by these banks had dropped to 326 million dollars, two mil lion below the high level at the end of November. From May 15 until December a higher figure was reported at the end of each successive week, with only one interruption. Season al influences accounted for part of that increase. Despite the decrease after December 1, loans at the weekly reporting banks amounted to one third more on December 11 than they did at the end of the corresponding week in 1945. About the same expansion has taken place in other dis tricts now that private business, rather than the Government, S i x t h D i s t r i c t In d e x e s DEPARTMENT STORE SALES* Item DISTRICT............. A tlanta............... Baton R ouge.. . Birmingham . . . . C hattanooga.. . Jackson............. Jacksonville___ Knoxville........... M acon............... M ontgom ery... N ashville.......... New O rle a n s... Tam pa............... Nov. 1946 348 382 395 318 388 316 423 335 334 349 337 428 306 464 Adjusted** Oct. 1946 347 400 379 321 369 325 431 307 334 379 328 420 290 483 Unadjusted Nov. 1945 290 325 308 282 296 273 355 312 290 280 299 338 246 371 Nov. 1946 417 473 447 381 442 379 507 395 421 425 414 497 361 547 Oct. 1946 372 428 409 350 387 373 461 331 360 334 374 445 322 473 Nov. 1945 348 403 348 339 338 328 426 368 365 341 368 392 291 438 Unadjusted Oct. 1946 333 482 263 365 477 280 Nov. 1945 203 300 149 213 349 132 DEPARTMENT STORE STOCKS Place DISTRICT............. A tlanta............. Birmingham___ M ontgom ery... Nashville........... New O rle a n s... Nov. 1946 330 407 229 313 475 259 Adjusted** Oct. 1946 297 411 234 322 416 248 Nov. 1945 193 260 126 183 301 117 COTTON CONSUMPTION* Nov. Oct. Nov. 1946 1945 1946 182 173 156 TOTAL............. 193 A labam a___ 183 165 171 G eorgia............. 183 155 T ennessee........ 141 132 134 SIX STATES A labam a........... F lorida............... G eorgia............. Louisiana.......... Mississippi. T ennessee....... Place SIX STATES ., Alabama............ G eorgia............. Louisiana......... M ississippi........ T ennessee........ i48 i52 LUMBER PRODUCTION* Adjusted** Sept. Oct. Oct. 1946 1946 1945 151 146 96 87 175 115 174 92 60 106 161 129 139 64 108 170 162 85 138 208 139 Oct. 1946 142 89 171 109 133 190 136 Unadjusted Sept. 1946 152 164 89 171 112 170 224 Oct. 1945 95 108 61 126 66 82 156 MANUFACTURING EMPLOYMENT*** Oct. Sept. Oct. 1946 1946 1945 141 140 133 149 146r 137 120 113r 114 139 138 128 129 138 128r 148 148 135 151 150r 141 GASOLINE TAX COLLECTIONS Nov. Oct. Nov. 1946 1946 1945 168 157 132 179 163 140 151 133 118 127 163 147 165 144 129 174 156 116 164 188 205 CONSUMERS' PRICE INDEX Sept. Oct. Oct. 1946 1946 1945 ALL ITEMS.. 152 149 134 Food......... 185 180 147 C lothing.. . 162 163 144 Rent........... n.a. 115 114 Fuel, elec. and ic e .. 114 114 110 Home fur nishings . 163 158 145 i on IQA Misc........... 134 131 Purchasing pow er of dollar. .67 .66 .75 CRUDE PETROLEUM PRODUCTION IN COASTAL LOUISIANA AND MISSISSIPPI* U n ad ju sted .. A djusted**... COAL PRODUCTION* Nov Oct. Nov. 1946 1946 1945 108 166 169 111 177 174 ioi Item Nov. 1946 232 229 Nov. 1946 347 470 271 365 552 293 Oct. 1946 227 228 Nov. 1945 208 205 ELECTRIC POWER PRODUCTION* Oct. Sept. Oct. 1946 1945 1946 232 SIX STATES. 276 269r Hydro generated 261r 213 263 Fuel 256 279 generated 293 ANNUAL RATE OF TURNOVER OF DEMAND DEPOSITS Oct. Nov. Nov. 1946 1945 1946 18.9 16.0 U n ad ju sted .. 19.0 18.7 15.1 A djusted**... 17.9 58.4 72.4 Index**......... 69.3 *Dailv average basis **A djusted for seasonal variation ***1939 monthly average=100; r\+ i inrlavae 1Q V Q^_Q —D Q—1 O r Revised n.a.Not available 1 2 8 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 t la n t a f o r D e c e m b e r 1 9 4 6 S ix t h D is t r ic t S t a t is t ic s C O N D IT IO N O F 20 M EM BER BAN KS IN S E L E C T E D C IT IE S (In Thousands ol D o llars) Tipc. 18 Item 1946 Loanst and investm ents— T otal.................................... Loans—Total.......................... Commercial, industrial, an d agricultural loans. Loans to brokers and dealers in secu rities... Other loans for p u r chasing and carrying secu rities......................... Real estate lo a n s............. Loans to b an k s................. O ther lo an s....................... Investm ents—to tal............... U. S. direct o b lig atio n s.. O bligations g u aranteed by U. S............................ O ther secu rities............... R eserve w ith F. R. B a n k ... C ash in v a u lt....................... Balances with domestic b an k s.................................. Demand deposits adjusted. Time d ep o sits....................... U. S. G ov't d ep o sits........... Deposits of domestic b an k s. Borrow ings............................ Nov. 20 1946 D ec. 19 1945 Percent C hang e D ec. 18, 1946, .Irom Nov. 20 1946 D e c. 19 1945 — 15 + 7 1,949,922 2,020,983 2,302,953 583,786 578,214 547,545 — 4 4- 1 248,429 + o + 32 328,125 328,045 16,623 ,+ 8 — 61 85,604 86,655 156,478 41,463 23,520 41,089 3,476 4,117 4,101 99,019 118,352 111,895 1,366,136 1,442,769 1,755,408 1,201,993 1,277,515 1,605,303 — — — rf — — 1 1 0 6 5 6 - i 45 )4* 75 rf 18 4- 20 — 22 —• 25 — 7 — 1 4- 1 4- 4 4- 21 + 9 4- 2 + 1 + 13 + 1 1 — 57 — 1 — 67 — 4+ — — 6,515 1,360 162,783 381,115 32,252 6,039 1,460 163,794 377,063 31,100 1,121 148,984 372,622 31,837 153,839 135,860 171,251 1,395,335 1,376,329 1,260,861 452,979 455,770 414,193 43,768 102,304 473,296 487,722 493,527 614,875 6,000 18,000 — 10 11 9 91 21 D EB IT S T O IN D IV ID U A L B A N E A C C O U N T S (In Thousands ol Dollars) P lace No. ol Banks Report ing Nov. 1946 Oct. 1946 Nov. 1945 Percent C hang e Nov. 1946 irom Oct. 1946 Nov. 1945 ALABAMA A nniston.......... Birmingham.. . D othan............. G ad sd en .......... M obile............. M ontgom ery... 3 6 2 3 4 3 20,611 290,486 11,674 18,058 106,626 68,824 23,206 287,013 13,433 17,235 105,877 70,126 15,742 228,438 11,263 13,437 91,367 50,058 — 4— 4+ — 11 1 13 5 1 2 44+ + + + 31 27 4 34 17 37 FLORIDA Jacksonville... Miami............... G reater Miami* O rlando........... P ensacola........ St. P etersburg. Tam pa............. 3 8 13 2 3 3 3 231,254 195,686 271,033 44,559 30,688 46,274 105,474 223,953 191,808 269,603 43,793 29,886 44,875 97,269 189,935 157,232 220,051 35,282 26,928 35,129 82,129 t + 4+ + + 4- 3 2 1 2 3 3 8 +. + + + 444- 22 24 23 26 14 32 28 GEORGIA A lbany............. A tlanta............. A u g u sta........... Brunsw ick........ C olum bus........ E lberton........... G ainesville*. . . Griffin*............. M acon............... N ew nan........... Rome*............. Savannah........ V aldosta......... 2 4 3 2 4 2 3 2 3 2 3 4 2 17,467 712,191 49,251 8,093 56,409 3,971 11,310 11,285 57,522 8,336 21,698 76,107 10,242 16,394 716,613 54,613 8,623 56,855 4,554 13,654 10,961 58,027 9,782 22,321 77,904 12,172 15,411 538,722 39,460 9,946 39,376 3,075 10,539 8,022 45,147 7,756 17,156 70,263 9,980 + 7 1 10 6 1 13 17 3 1 15 3 2 16 444— 4~ 4•4444* 44+ 13 32 25 19 43 29 7 41 27 7 26 8 3 LOUISIANA Baton R o u g e .. Lake C h a rle s .. New O rle a n s.. 3 3 7 66,981 25,869 582,712 68,377 24,979 696,749 49,242 20,350 456,714 MISSISSIPPI H attiesb u rg ... Jackson........... M eridian......... V icksburg....... 2 4 3 2 16,443 91,308 28,691 27,006 20,323 97,858 31,184 29,782 14,082 69,989 20,557 23,649 TENNESSEE C h attan o o g a-. ■ Knoxvillei......... Nashville......... 4 4 6 117,612 100,227 246,793 125,908 103,949 269,364 92,989 101,569 201,442 — 7 — 4 — 8 4- 26 — 1 4- 23 109 3,473,445 3,632,484 2,766,659 — 4 rf- 26 86,627,000 91,315,000 79,401,000 — 5 4- SIXTH DISTRICT 32 C ities......... UNITED STATES. 334 C ities........ * N o t in c lu d e d in S ix th D istric t total — — — — — — 4— — — — — — 2 4- 4 — 16 4- 36 4- 27 4- 28 — — — — 44,44- 19 7 8 9 17 30 40 14 9 has increased its importance as a user of bank credit. At Sixth District reporting member banks total loans in December constituted about 29 percent of these banks’ total loans and investments, compared with 20 percent last year. The rate of increase in business and agricultural loans at the Sixth District reporting banks, however, was not as great as that at the reporting banks in any of the 11 other Federal Reserve Districts. With the exception of those in the St. Louis and Boston Districts the reporting member banks in all the other districts reported greater percentage increases in this type of loan between December 5, 1945, and December 4, 1946, than did the reporting banks in the Atlanta District. For all the districts the increase was 46 percent; in the Atlanta Dis trict it was 34 percent. A similar comparison made for the first week in November showed that at that time the increase at the banks in this district had exceeded the increase in all but four of the other 11 districts. The expansion of private credit was not great enough at all member banks in this area to offset declines in the banks’ holdings of Government securities. Although loans increased 51 million dollars, between the end of June and the end of September total resources of Sixth District member banks declined 194 million, largely because of declines of 211 mil lion dollars in holdings of United States Government obliga tions and 31 million in reserves and cash balances. The de cline in total resources after the end of 1945 amounted to ap proximately half a billion dollars. Total resources of mem ber banks were 5.6 billion on September 30. On the liability side of the member banks’ balance sheets there was a total decline in deposits of 206 million dollars from June to September and one of 540 million from the end of 1945. The growth of 38 million dollars in the amount of deposits of individuals, partnerships, and corporations was far from sufficient to offset the decline of 171 million dollars in Government deposits and the decline of 52 million in the deposits of banks between June and September. The amount of deposits in Sixth District member banks fell sharply after the close of World War I, beginning at the end of 1919, a period when deposits throughout the coun try were declining at a much more moderate rate. So far as the demand deposits adjusted of the weekly reporting banks are concerned, this occurrence has not yet been repeated. On December 4 these deposits amounted to 7 percent more than they did on the corresponding date in 1945. The rate of in crease exceeds that of each of the districts with the exception of the Minneapolis District. Although in the reporting banks throughout the country the amount of these deposits was 6 percent above that of a year ago, in the Sixth District the increase was 12 percent. Industry The ending of the coal strike on December 7 brought an end to the threat of wholesale unemployment that would have resulted if the strike had continued much longer. Railroad schedules, sharply curtailed to conserve fuel, were promptly restored, and plans for other curtailments on the part of industry were abandoned. Steel-mill activity in the Birmingham-Gadsden area, w rhich M o n t h l y o f th 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 6 R e v ie w S ix t h D is t r ic t S t a t is t ic s R E T A IL FU R N IT U R E S T O R E O P ER A T IO N S Number of Stores Reporting Item Percent C hang e November 1946 from October 1946 102 Total sa le s.......................................... C ash sa le s.......................................... Instalm ent and other credit sales Accounts receivable, end of month Inventories, end of m onth............. — — — ,+ — 94 94 101 81 Nov. 1945 8 5 8 2 + -j+ + + 1 29 21 32 34 57 IN STA LM EN T C A S H LO A N S Volum e No. of Stores Report ing Lender Outstandings Percent C hang e Nov. 1946 from Percent C hang e Nov. 1946 from October 1946 Nov. 1945 Nov. 1945 45 25 4- 1 + 41 4- 65 <+ 77 :+ + 3 2 + 72 + 45 10 22 Federal credit u n io n s......... State credit u n io n s .. . . . . . . . Industrial banking com p an ies.................................. Industrial loan com panies. Small loan com panies........ Commercial b an k s............... October 1946 — 10 + + + ■'+ + + + + 3 4 3 6 + .+ + + + 53 34 1 + 3 — 3 27 25 30 93 61 29 38 128 W H O L E S A L E S A L E S AND IN V E N T O R IE S * IN V E N T O R IE S SA LES Percent Change Nov. 1946, from No. of Firm s Report ing Items Oct. 1946 Nov. 1945 Percent C hang e No. of Firm s Nov. 30, 1946, from Report Oct. 31 Nov. 30 ing 1946 1945 6 — 10 + 29 3 — 2 + 60 3 Automotive supplies. Clothing and fur nishings ................... Drugs and sundries. Dry g o o d s................... Electrical g o o d s........ Fresh fruits and v eg etab les............. C onfectionery........... G roceries..................... Full lin e s................. Specialty lin e s....... B eer.............................. G eneral h ard w are. . . Industrial su p p lies... Lumber and building m aterials ............... Tobacco p ro d u c ts... . M iscellaneous........... T otal............. . ............ — — — — 21 9 5 4 — 8 !+ 9 ,+ 120 ..+ 93 3 5 3 + 3 — 5 + 7 + 6 + 134 ,+ 97 + 17 — 8 + 7 + 35 — — — — ,+ 13 25 32 8 <+ ’+ — + *+ 17 7 4 4 + 26 ,+ 8 + 8 1 2 + + ,+ — +» + — + — 13 15 9 7 is + 16 + 12 + 58 + 58 10 10 4 5 6 37 11 4 9 3 4 6 19 137 o 20 39 44 59 69 42 25 31 + 94 + 10 + 38 + 36 61 * Based on U. S. Departm ent of Commerce figures DEPA R TM EN T S T O R E S A L E S AN D S T O C K S SA LES Place ALABAMA Birmingham M obile............... M ontgom ery... FLORIDA Jacksonville---Miami................. O rlando........... Tam pa............... GEORGIA A tlanta............... A u g u sta........... C olum bus........ Macon,............... LOUISIANA Baton R ouge. . . New O rle a n s.. MISSISSIPPI Jackson............. TENNESSEE B risto l.. . . ........ C h a ttan o o g a ... Knoxville . . . . N ashville.......... OTHER CITIES*.. DISTRICT............. No. of Stores Report ing IN V E N T O R IE S Percent C hang e Nov. 1946, from Percent C h an g e No. oi Stores Nov. 30, 1946, from Report Oct. 31 Nov. 30 ing 1946 1945 Oct. 1946 Nov. 1945 5 5 3 + + + 1 8 2 + 11 + 24 + 13 3 — 0 + 2 3 3 ,+ 4 + 18 — 4 + 7 + 19 + 25 + 15 + 22 + 8 ,+ 62 + 79 3 + "6 + '42 6 + 5 — 2 + 57 4 3 4 + + + + 18 + 37 + 24 + 15 *4 + 13 + '42 4 5 + vf + 28 + 24 4 4 +1 10 1+ 5 rf 66 + 122 4 — 6 + 16 4 i+ 5 ,+ 102 3 4 4 + .+ 26 + 31 + 9 + 27 + 15 + 20 3 + 9 1 i+ 66 had been reported at near-capacity operations since the mid dle of June, declined to 78 percent in the week ending November 26 and to 41 percent the following week. For the week ending December 10, however, it was reported at 60 percent of capacity and a week later at 80 percent. The District index of manufacturing employment con tinued in October, the latest period for which figures are available, at a higher level than it held a year ago. The daily rate of electric-power production in the District increased each month from April through October and was greater dur ing both this September and October than it was in those months last year. Although lumber production in the District has been con sistently higher during 1946 than it was last year, there is still a good deal of confusion in the lumber market. Present indications, however, are that lumber buying is beginning to return to a basis of quality and price and that more buyers are requiring quality lumber and refusing that which is green or ungraded. It is also believed that more lumber is becoming available and that the market will soon become stabilized on the basis of reasonably profitable prices— somewhat higher than the former OPA ceilings but not as high as those re ported immediately following the lifting of price restrictions. There is, of course, a large amount of construction planned. Contracts awarded in the Six States during the first 10 months of this year amounted to almost 788 million dollars, com pared to a total of 481 million awarded in that part of last year. Of the January-October total this year, 40 percent, or 318 million dollars, was for residential construction. This is more than four times the residential total in these six states for the whole of 1945. Partly in preparation for the curtailment threatened by the coal strike with the consequent shortage of power at many points, textile mills in Alabama, Georgia, and Tennessee used 12,884 bales of cotton for each working day in November. That was the highest daily average rate of consumption in these states for any month in more than four years. It was an increase of 6 percent over the October rate and was 17 percent above the figure for November 1945. + 71 4 4 3 5 1 2 9 6 18 94 2 7 6 8 1 4 9 + 6 + 10 + 3 — 2 :+ 4 4 + 3 3 — ‘5 24 72 ,+ 2 + 4 + ^ + 82 + 167 + ‘58 + 53 + 71 * W hen few er than 3 stores report in a given city, the sales or stocks are gro u p ed together under ’'other cities." R E T A IL JE W E LR Y S T O R E O P ER A T IO N S Item Number of Stores Reporting Oct. 1946 Total sa le s......................................... Cash sa le s......................................... Credit sa le s................................ . Accounts receivable, end of month Collections during m onth............... 21 20 20 21 21 + 23 + 26 + 22 + 8 + 9 Percent C hange Novem ber 1946 from Nov. 1945 — — + +. + 0 11 15 47 38 B A N K A N N O U N CEM EN T The Bank of Arab, Arab, Alabama, a nonmember bank located in the territory served by the Birmingham branch, began remitting at par on November 14. This bank has a capital of $25,000, surplus and undivided profits of $48,000, and deposits of $1/403,000. Max Luther is president, J. M Leak vice president, and J. L Scott cashier. . . 1 3 0 M T h e o n t h l y R e v ie w N a t i o n a l o f th e F e d e r a l R e s e rv e B a n k o f A tla n ta f o r D e c e m b e r 1 9 4 6 B u s in e s s I ndustrial production and employment in most lines of ac tivity continued to be maintained at record peacetime levels in November. Department store sales were larger in dollar amount in November and the early part of December than they were during the holidays last year, mainly because of increased prices. Prices of industrial commodities have generally advanced further, but a number of important farm products and foods have declined from previous peaks. Industrial Production Total output of manufactured goods and minerals, as meas ured by the Board’s seasonally adjusted index, was 182 per cent of the 1935-39 average in November. This was about the same as in October, notwithstanding the sharp drop after November 20 in coal, coke, iron, and steel production as a result of work stoppages in the bituminous-coal industry. After the resumption of bituminous-coal output on December 9, activity at steel mills, which reached a low of 60 percent of capacity in the first week of the month, rose sharply and during the third week was scheduled at 84 percent. Output of steel in November was at an average rate of 84 percent of capacity, compared with 89 percent in October. Activity in the nonferrous metals and machinery industries continued to increase in November, and the output of most other metal products was maintained at a high level. Lumber production showed less than the usual seasonal decline. Output of manufactured food products was maintained in November at an exceptionally high level for this season of the year, reflecting chiefly further sharp increases in meat pro duction and larger output of flour and sugar products. Pro duction of cotton and rayon textiles, paperboard, rubber products, and some other nondurable goods showed further small gains in November. Output of minerals declined 5 percent in November. Bituminous-coal production dropped sharply as a result of work stoppages in the latter part of the month, whereas production of anthracite and crude petroleum was maintained at high levels and output of metals showed less than the usual sea sonal decline. Construction Estimated expenditures on construction projects in November were maintained close to the peak levels reached in August and September. Contracts awarded for nonresidential con struction, however, were at the lowest level since the end of the war, according to reports of the F. W. Dodge Corporation. Residential-building awards were sharply below the peak rate S u m m a r y reached in the spring but were still considerably above last year’s level. Distribution Department store sales in November and the early part of December were about one fifth larger than they were during the same period of the holiday-shopping season last year. The total value of retail trade outside of department stores in creased somewhat further in the fourth quarter, reflecting chiefly higher prices and larger expenditures for foods. Loadings of railroad revenue freight declined in November because of the sharp drop in bituminous-coal shipments at the end of the month. Loadings of manufactured products and most other classes of freight showed substantial gains after allowance was made for seasonal changes. Commodity Prices Following the initial sharp increases in basic commodities that occurred with the elimination of Federal price controls on November 11, price changes have become more selective. Prices of copper, lead, steel scrap, and cotton gray goods for immediate delivery have advanced further, whereas prices of hides, turpentine, and silk have declined. During the past week there has been a sharp drop in hog prices. Wholesale prices of foods have decreased somewhat further from the sharply advanced levels reached in the middle of October. Prices of industrial products have continued to advance. In retail markets the prices of women’s wear and of some other items have declined, but in general retail prices have con tinued to advance. Bank Credit Commercial, real-estate, and consumer loans increased fur ther at banks in leading cities during November and the first half of December. Government-security holdings declined considerably, reflecting the cash retirement of notes and cer tificates by the Treasury. Deposits of businesses and individ uals increased somewhat, and currency in circulation rose in the usual seasonal amount. The Treasury retired for cash during November and the first half of December 5.8 billion dollars of Government se curities held largely by the banking system. Withdrawals from war-loan deposits at commercial banks to redeem secur ities reduced U. S. Government deposits at banks to a level of about two billion dollars in mid-December, compared with 24 billion dollars before the retirement program was begun in March. T h e B oard of G overnors M o n t h l y R e v ie w o f th 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 I n d e x f o r th e A A griculture Sixth District Agriculture in 1945, Earle L. Rauber. 3 See also Business conditions, District summaries. B Banking Additions to the Par List Allapattah State Bank, Miami, Fla. 73 American Bank & Trust Co., Baton Rouge, La. 36 Bank of Lexington, Ala. 52 Bank of Orlinda, Tenn. 18 Citizens Bank, Gainesville, Ga. 36 Citizens Bank of Oviedo, Fla. 64 Citizens State Bank, St. Cloud, Fla. 64 City Bank & Trust Co., Natchez, Miss. 52 Claiborne County Bank, Tazewell, Tenn. 52 Commercial Bank of Daytona Beach, Fla. 12 East Lauderdale Banking Co. of Rogersville, Ala. 36 East Point Commercial Bank, East Point, Ga. 99 Farmers & Merchants Bank, Brewton, Ala. 64 Spring Hill branch of Farmers & Merchants Bank, Mt. Pleasant, Tenn. 99 Farmers Bank, Anderson, Ala. 36 Mechanics-State Bank, McComb, Miss. 52 Merchants Bank, Hanceville, Ala. 64 Metairie Savings Bank & Trust Co., La. 112 Springs State Bank, Sulphur Springs, Fla. 73 State Bank of Haines City, Fla. 112 State Bank of West Tampa, Fla. 112 Tropical State Bank, Sebring, Fla. 99 Venice-Nokomis Bank, Venice, Fla. 73 West Georgia Bank & Trust Co., Carrollton, Ga. 99 Admissions to FRS membership American Bank & Trust Co., Bessemer, Ala. 112 Citizens Bank of Stuart, Fla. 99 Farmers & Merchants Bank, “Inc.,” Brewton, Ala. 99 First National Bank of West Point, Ga. 52 First Savings & Trust Co. of Tampa, Fla. 18 North Shore Bank, Miami Beach, Fla. 112 See also National-charter grants. Appointments and elections. 12, 36, 99, 112 Debits Debits to Individual Bank Accounts. Tables : 12, 18, 25, 36, 45, 61, 73, 89, 102,114, 121 Sixth District Bank Debits. 62 Deposits Annual Rate of Turnover of Demand Deposits. Tables: 6, 19, 27, 39, 55, 67, 75, 85, 103, 115, 123 Ownership of Bank Deposits in the Reconversion Period. Charles T. Taylor. 110 Postwar Trends in Ownership of Demand Deposits. 34 Member banks Condition of 20 Member Banks in Selected Cities. Tables: 12, 25, 36, 45, 61, 73, 89, 102, 114, 121 Member Bank Operations During 1945. Charles T. Taylor. 21 fo r D ecem ber 1946 Y e a r 1 3 1 1 9 4 6 National-charter grants Broward National Bank of Fort Lauderdale, Fla. 64 First National Bank of Delray Beach, Fla. 64 Florida State Bank, Delray Beach, Fla. 64 Valley National Bank of Lanett, Ala. 52 See also Business conditions. Business Conditions District summaries. 1, 10, 19, 26, 37, 53, 65, 74, 86, 100, 113, 122 Economic Appraisal of the Postwar South. Earle L Rauber. 1 National summaries. 28, 40, 56, 68, 92, 116 Reconnaissance charts. 2, 18, 36, 52, 64, 73, 80, 111, 121 c C onsumer B uying H abits , Wartime C hanges I n. Thomas R. Atkinson. 98 C onsumer C redit A nd P ostwar B uying. Charles T. Taylor. 69 Coal Production. Tables: 6, 19, 27, 39, 55, 67, 75, 85,103, 115, 123 Construction, Postwar. Charts: 112 Consumers’ Price Index. 50. Tables: 6, 19, 27, 39, 55, 67, 75, 85, 103, 115, 123 Cotton Consumption. Tables: 6, 19, 27, 39, 55, 67, 75, 85, 103, 115, 123 C redit Consumer Credit and Postwar Buying. Charles T. Taylor. 69 See also Business conditions, Condition of 20 Member Banks, Furniture and Jewelry Store Operations, and Instalment Cash Loans. D Department Stores Sales. Tables: 6, 9, 19, 26, 27, 38, 39, 54, 55, 64, 67, 75, 76, 85, 87, 99, 103, 115, 116, 123, 124 Stocks. Tables: 6, 9, 19, 26, 27, 38, 39, 54, 55, 64, 67, 75, 76, 85, 87, 99, 103, 115, 116, 123, 124 See also Business conditions, District and National sum maries. Do Y ou R emember W h e n ? 77 E Economic Appraisal of th e Postwar South. Earle L. Rauber. 1 E ducation as an I nvestment in S ixth D istrict E conomic P rogress. Charles T. Taylor. 93 E le c tric Power Production. Tables: 6, 19, 27, 39, 55, 67, 75, 85, 103, 115, 123 E mployment Manufacturing Employment. Tables: 6, 19, 39, 55, 67, 75, 85, 103, 127 See also Business conditions, District and National sum maries. M 1 3 2 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 F Furniture Store Operations, R etail. Tables : 9, 20, 26, 38, 54, 64, 76, 87, 99, 109 G Gasoline Tax Collections. Tables : 6, 19, 27, 39, 55, 67, 75, 85, 103, 115, 123 H H un tsville , A labama, A S tudy in C ommunity D ev elo p ment . Thomas R. Atkinson. 117 I I ncreasing t h e V alu e of t h e S outh ’s F orest R esources T hrough R esearch . Charles T. Taylor. 41 I ndustry Huntsville, Alabama, a Study in Community Development. Thomas R. Atkinson. 117 Increasing the Value of the South’s Forest Resources through Research. Charles T. Taylor. 41 Industrial Information Service. C. H. Donovan. 79 New Sixth District Index: Lumber, the South’s Second Largest Industry. Thomas R. Atkinson. 81 Sixth District Industry in 1945. John Tyree Fain. 7 Southern Research Institute, Created in Recognition of an Economic Opportunity, The. Charles T. Taylor. 57 Spread of Development Corporations, The. C. H. Dono van. 105 I nventories Wholesale Sales and Inventories. Tables : 9, 26, 38, 54, 64, 76, 87, 99, 116, 124 See also Business conditions— District and National sum maries— and Department stores. J Jewelry Store Operations, R eta il. Tables : 6, 20, 27, 39, 55, 67, 76, 87, 116, 124 L L oans Secretary Vinson on the British Loan. 46 South and the Loan to Britain, The. Charles T. Taylor. 13 Tables and charts Instalment Cash Loans. 9, 19, 26, 38, 54, 64, 75, 80, 99, 116, 124 Postwar Loans of Sixth District Weekly Reporting Mem ber Banks. 35 See also Business conditions Lumber Increasing the Value of the South’s Forest Resources through Research. Charles T. Taylor. 41 New Sixth District Index: Lumber, the South’s Second Largest Industry. Thomas R. Atkinson. 81 Production. Tables: 85, 103, 115, 123 M Member Bank Operations During 1945. Charles T. Taylor. 21 o f A t la n t a fo r D ecem ber 1946 N N ew Orleans Role of the New Orleans International Trade Mart. Charles T. Taylor. 29 N ew S ix th D istrict I n d ex : L umber , t h e S outh ’s S econd L argest I ndustry . Thomas R. Atkinson. 81 o Ownership of Bank Deposits in th e Reconversion Period. Charles T. Taylor. 110 p Petroleum Production in C oastal Louisiana and Missis sippi, Crude. Tables : 6, 19, 27, 39, 55, 67, 75, 85, 103, 115, 123 Ports Role of the New Orleans International Trade Mart. Charles T. Taylor. 29 P ostwar T rends in Ownership of D emand D eposits . 34 R R esearch Industrial Information Service. C. H. Donovan. 79 Increasing the Value of the South’s Forest Resources through Research. 41 Southern Research Institute, Created in Recognition of an Economic Opportunity, The. Charles T. Taylor. 57 Reconnaissance Charts. 2, 18, 36, 52, 64, 73, 80, 111, 121 R e ta il Trade: See Trade. R o le of t h e N ew O rleans I nternational T rade Mart . Charles T. Taylor. 29 s Sales. Tables-. 9, 26, 38, 54, 64, 76, 87, 99, 116, 124 See also Department, Furniture, and Jewelry stores. S outh and t h e L oan to B ritain , T h e . Charles T. Taylor. 13 S outhern R esearch I nstitu te , C reated in R ecognition of an E conomic O pportunity , T h e . Charles T. Taylor. 57 S pread of D evelopm ent C orporations, T h e . C. H. Dono van, 105 T T rade Role of the International Trade Mart. Charles T. Tayor. 29 Secretary Vinson on the British Loan. 46 Sixth District Trade in 1945. D. E. Moncrief. 10 South and the Loan to Britain, The. Charles T. Taylor. 13 Wholesale Sales and Inventories. Tables: 9, 26, 38, 54, 64, 76, 87, 99, 116 See also Business conditions, and Department, Furniture, and Jewelry stores. v V inson on t h e B ritish L oan, S ecr et a r y . 46 w W artime C hanges in C onsumer B uying H abits . Thomas R. Atkinson. 98 W holesale Trade. See Trade.
