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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

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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.




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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

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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.