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In T h is Is s u e : Louisiana and the Energy Shortage Benefits of 1974's Bad Weather Accrued to District Farmers Board of Directors Banking Notes: Liquidity Pressures Intensify District Business Conditions 9 7 5 ib r u a r y iia ia iii i F e d e ra l R e s e rv e B a n k O f A t la n t a BU LK RATE ' P A ID Atlanta, Georgia Permit No. 292 F e d e r a l R e s e r v e S t a t io n A t la n t a , G e o r g ia 3 0 3 0 3 A d d r e s s C o r r e c t io n R e q u e st* i * 8 L o u T h e i s i a E n n a e r g a n y d S h o r t a g e by Joseph E. Rossman, Jr. W e s h o u ld e x p e ct that Lo u isia n a , w ith its v ast reserves o f o il a n d n atural gas, w o u ld h e a d the list o f states least lik e ly to feel the p r o b le m s o f fue l sh o rtag e s. T h e Pe lica n State is the s e c o n d largest d o m e s tic o il p r o d u c e r a n d c o n ta in s o n e -fo u rth o f U. S. natural g a s reserves. H o w e v e r, o u r a n a ly sis in d ic a te s that L o u isia n a d id n o t e sc a p e e n e rg y -re la te d p r o b le m s an d , in s o m e instance s, felt fuel sh o rta g e s as se verely as the rest o f the nation. D e s p ite in c re a se d d e m a n d a n d h ig h e r prices, oil p r o d u c t io n in L o u isia n a re m ain s b e lo w 1 971's a ll-tim e p e a k; so d o e s p ro d u c t io n p e r w ell. In 1972 the yearly ave rage p e r w e ll w a s 150 b arrels p e r day. Latest a v a ila b le figu re s (late 1974) s h o w an a ve rag e o f 109 b arrels p er day. T h e re a so n s fo r d e c lin in g p ro d u c t io n are m a n y a n d c o m p le x ; h o w e v e r, m a n y o il expe rts o ffe r the f o llo w in g e x p lan atio n s. L o u isia n a 's in la n d w e lls are o ld a n d are b e in g d e p le te d . M a n y o f the se w e lls have be en in p ro d u c t io n fo r m o re than 50 years; s o m e w e re d rille d ju st after the turn o f this century. T h e e m b a r g o o n the sa le o f o ffsh o re oil leases d u r in g 1971 a n d m o st o f 1972 se rio u sly hu rt e x p lo ra tio n a n d c o n se q u e n t o il p ro d u c tio n . E x p lo ratio n , d rillin g, a n d final d e v e lo p m e n t o f an o il- p r o d u c in g w e ll take fro m three to five years. A re a s in v o lv e d in the o il lease sales, to ta lin g o v e r $2.0 b illio n in late 1972, c a n n o t re a so n a b ly be e x p e cte d to p r o d u c e until 1976. O ffs h o r e d r illin g itself is e x p e n siv e ; sh o rta g e s in c lu d in g pip e, drills, a n d la b o r c o m b in e d w ith these h igh e x p e n se s to h o ld b a c k the total n u m b e r o f d rillin gs. P ip e sh o rta g e s h a ve b e c o m e so acute, in fact, that a fe w p r o d u c in g in la n d w e lls h a ve be en d ism a n tle d fo r the ir p ip in g . A n in c re a se d e m p h a sis u p o n p o llu t io n c o n tro l w ith its h ig h c o st h as a lso affe cted L o u isia n a oil p ro d u c tio n . E q u ip m e n t n e c e ssary to re d u c e o r e lim in a te p o llu t io n en tire ly is expe nsive , a n d d o lla rs m u st be d iv e rte d fro m o th e r areas su c h as e x p lo ra tio n o r n e w p la n t e q u ip m e n t. M o n th ly R e vie w , V ol. LX, No. 2. Free su bscription and ad d itio n al co p ies availab le u pon request to the R esearch D ep artm en t, Federal Reserve Bank o f A tlanta, A tlanta, G eorgia 30303. M aterial herein m ay be rep rin ted o r abstracted p ro vid ed this R e vie w , the Bank, and the au tho r are cred ite d . Please p ro vid e this Bank's R esearch D ep artm en t w ith a co p y of any p u b licatio n in w h ich su ch m aterial is reprinted. FEBRUARY 1975, MONTHLY REVIEW O il prices, u ntil recently, have be en relatively lo w an d , w h ile n o t d is c o u r a g in g oil e x p lo ra tio n a n d p ro d u c tio n , h ave n o t se rve d to p ro m o te them . D e s p ite a b u n d a n t reserves, L o u isia n a has su ffe re d natural g a s sh o rtage s. A s w ith oil, L o u isia n a 's natural g a s p ro d u c t io n d u r in g 1973 a n d 1974 w a s b e lo w p e a k levels. In 1973, p ro d u c tio n a v e ra g e d 1 5 .8 -m illio n M C F (m illio n c u b ic feet) u nits p er day, w h ile in 1974 the a ve ra g e d r o p p e d to 1 2 .8 -m illio n M C F units. A g a in , re a so n s for the d e c lin e are m a n y a n d c o m p le x . M a n y experts c o n te n d that the p rice o n interstate gas, re g u late d b y the Federal P o w e r C o m m is s io n , is to o lo w a n d re m o v e s in c e n tiv e fo r e x p lo ra tio n a n d d rillin g. L o u isia n a g a s p ro d u c e r s e x p o rt s o m e 70 p erce n t o f the ir o u tp u t to o th e r states, re c e iv in g an a ve rag e 50 cen ts p e r M C F . T h e re m a in in g 30 p e rce n t is retain ed fo r state use a n d is s o ld at an u n re g u la te d p ric e o f $2.12 p e r M C F . W h ile the Federal P o w e r C o m m is s io n d o e s n o t . . . but value of output has skyrocketed because of higher unit prices. Mil $ (Value at Wells) re gu late the p ric e o f intrastate gas, it d o e s require that natural ga s p ro d u c e rs g iv e resid en tial a n d in stitu tio n a l n e e d s p rio rity o v e r industry. M a n y in d u strial u sers fo u n d th e m se lv e s w ith re d u c e d s u p p lie s o f natural ga s d u r in g 1973. Im p a c t o f S h o rta g e s N a tu ra l g a s a n d g a s o lin e sh o rta g e s affected m a n u fa ctu re rs in v a ry in g d e gre e s d u r in g 1973 an d 1974. It is d iffic u lt to iso late these in flu e n c e s b e c a u se o f the c o n c u rre n t effects o f risin g p rices a n d n o n e n e r g y sh o rtages. H o w e v e r, o n e researcher in early 1974 tried to d e te rm in e the effects o f the e n e rg y crisis as w e ll as the im p a c t o f p rice increase s a n d n o n e n e r g y sh o rtag e s, su c h as stee l.1 A c c o r d in g to this study, n early o n e -fo u rth o f the re sp o n d e n ts re p o rte d that sh o rt e n e rg y su p p lie s cu rtaile d b u sin e s s activity at an a v e ra g e o f 12 percent. Plastic sh o rta g e s tro u b le d n early 30 perce n t o f the re sp o n d e n ts, w h ile c h e m ic a ls, p artic u larly th o se w h ic h are p e tro le u m -b a se d , led sh o rta g e p ro b le m s m e n tio n e d in the w rite -in category. A lt h o u g h the e n e rg y crisis d id fo rce m a n y o f the r e s p o n d in g firm s to c u t b a c k p ro d u c tio n , they re p o rte d steel rather than e n e rg y to be m o st tro u b le so m e . P ape r a n d b u ild in g -m a te r ia l sh o rta g e s w ere m e n tio n e d as w ell. L o u isia n a farm e rs a lso e x p e rie n c e d u n ce rtain tie s a n d p ro b le m s fro m sh o rt su p p lie s o f e n e rg y a n d e n e rg y -re la te d item s. increase s in a cre a ge c o m b in e d to p r o d u c e a d d itio n , in c re a sin g ly cut sh a rp ly into farm Fertilizer sh o rta g e s a n d u n d e r c u ltiv a tio n have lo w e r o u tp u ts p er acre. In h ig h fertilizer c o sts have profit. N a tu ra l ga s sh o rta g e s p artia lly h a m p e re d the 1973 su g a r c an e harvest. Faced w ith u ncertain tie s a b o u t ga s su p p ly , farm e rs started h a rv e stin g earlier than u su al in 1974. L o u isia n a c o n su m e r s have reacted to sh o rta g e s a n d h ig h e r c o sts b y r e d u c in g s o m e w h a t their use o f e n e rg y a n d related item s. H o u s e h o ld electricity use in 1974 w a s d o w n s o m e 8 p erce n t fro m 1973. A u t o m o b ile sale s d r o p p e d sh a rp ly in 1974, o w in g at least p artly to the e n e rg y situation . H ig h e r fuel c o sts a n d sh o rta g e s p lu s in crease d p rices a n d sh o rt su p p lie s o f p e tro le u m -b a se d m a te ria ls c o m p lic a t e d the lives o f L o u isia n a 's fish e rm e n d u r in g 1974. For e x am p le, sh rim p e rs had 'Such a study was made by Dr. Edward Strong, Tulane University. It was jointly sponsored by the New Orleans Chamber of Commerce, the U. S. Department of Commerce, and the Tulane Graduate School of Business Administration. Dr. Strong's study was based on the responses of some 700 businesses in the New Orleans Standard Metropolitan Statistical Area. FEDERAL RESERVE BANK OF ATLANTA to p a y m u c h h ig h e r p rice s fo r m a n y o f their nets a n d w e b b in g s m a d e o f n y lo n a n d o th e r p e tro c h e m ic a l m aterials. F is h -p ro c e ssin g p lan ts w h ic h use natural ga s as a p o w e r so u r c e w e re h a m p e re d b y the h igh c o sts a n d sh o rt s u p p ly o f that fuel. M e n h o d e n -p r o c e s s in g p lan ts w ere 15 Nonfarm em ploym ent has dropped, while unem ploym ent jumped. Thl EM PLOYM ENT M a n u fa ctu rin g and con stru ction have experienced the greatest job losses. Thous 187 183 179 175 88 84 80 1972 1973 1974 Both durable and nondurable m an ufacturin g jobs declined, though d u rab le s dropped m ost . Thous 104 100 e sp e c ia lly affe cted b y n a tu ra l-g a s p ro b le m s. (The m e n h o d e n is a sm all h e rrin g -lik e fish v a lu a b le m o stly fo r m e al a n d fertilizer a n d fo r its oils.) 96 84 O v e r a ll P e rfo rm a n c e 80 L o u isia n a 's m a jo r e c o n o m ic in d ic a to rs fo r 1974 n o t o n ly reflect the n e ga tiv e in flu e n c e s o f e n e rg y sh o rta g e s b u t a lso th o se o f in fla tio n a n d n a tio n w id e recession . T h e p ictu re is still b righ te r fo r the state than the n ation, h ow eve r. Its u n e m p lo y m e n t rate has been c lo se to the n a tio n 's in recent m o n th s; D e c e m b e r 's 6 .7 -p e rce n t rate a p p r o a c h e d the U. S. 7 .2 -pe rce nt rate. H o w e v e r, in crease d jo b le ssn e ss is still less than in the U.S. R e c e ssio n -h it m a n u fa c tu r in g is less im p o rta n t in L o u isia n a 's e c o n o m y . A n d its la b o r fo rce g ro w th has been less than n atio n a lly. E x p an sio n in oil activity has be en a n o th e r reason the recession has hit the state less hard. A n a b se n c e o f strikes in the Port o f N e w O r le a n s a n d the in cre a se d activity in m a jo r sh ip y a r d s h ave p ro v id e d a d d itio n a l stability. C o n str u c tio n activity, o n the o th e r ha n d , has d e c lin e d , as it has n atio n a lly. R e sid e n tial and n o n re sid e n tia l c o n stru c tio n a w a rd s w ere d o w n in 76 Som e sectors, however, still held up. Thous 276 272 268 264 244 240 236 232 228 192 1974; n o n b u ild in g h e ld up. Farm ers, m e a n w h ile , b e n e fite d fro m h igh e r receipts b e c a u se o f im p ro v e d c ro p m a rke tin gs. R is in g costs, h o w e v e r, lo w e re d their in c o m e . 188 184 180 O u t lo o k 176 T h e P re sid e n t a n d the C o n g r e s s have o u tlin e d v a rio u s fiscal p ro g r a m s that, if en acted , w ill m o st lik ely stim u la te L o u isia n a 's e c o n o m y (as they w ill the n atio n 's). T h e s lo w in g in in flatio n , a 60 56 re d u c tio n in interest rates, and, in d u e cou rse, a reversal fro m the curren t recession sh o u ld 52 1972 16 1973 1974 FEBRUARY 1975, MONTHLY REVIEW e v e n tu a lly im p ro v e e c o n o m ic c o n d itio n s in the sh o re o il port, is c o n sid e r e d to b e the le a d in g P e lica n State. P ro sp e c tiv e d e v e lo p m e n ts in the state s h o u ld p ro v id e a d d itio n a l h elp. Six o ffsh o r e lease sale s s c h e d u le d fo r 1975 b y the In te rio r D e p a rtm e n t w ill increase the p o ssib ility o f f in d in g m u c h -n e e d e d fue l reserves. E x p lo ratio n a n d d rillin g , a lre a d y u p sh a rp ly in 1974, are e x p e cte d to rise th r o u g h c a n d id a te fo r a lic e n se to b u ild a d e e p -w a te r p o rt 1975 a n d 1976, p artic u larly if m ate rial a n d la b o r are a vailab le . In c re a se d c a p a c ity is b e in g b u ilt in to e x istin g refineries, a n d g r o u n d has b e e n b ro k e n fo r several n e w on es, t h o u g h s o m e p la n s h a ve b e e n c an c e le d . U n til late 1973, n o n e w refinery h a d b e e n started sin c e 1969. P ro sp e c ts o f a L o u isia n a su p e rp o rt im p ro v e d sh a rp ly w h e n the U . S. S e n ate a n d H o u s e a p p r o v e d su p e rp o rt le g isla tio n late last year. T h is e sta b lish e s a thre e-tiere d p referen tial sy ste m o f lic e n sin g. Prefe re n ce is first g iv e n to a state, then to o th e r p u b lic b o d ie s a n d p rivate b o d ie s u n a sso c ia te d w ith oil, a n d fin a lly to p rivate c o m p a n ie s in v o lv e d in th e p ro d u c t io n o f oil. L O O P , Inc., L o u isia n a 's o ff B an k A n n o u n ce m e n ts o ffsh ore . C o m p o s e d o f 15 m a jo r o il c o m p a n ie s, L O O P is e x p e cte d to b e a b le to h a n d le the largest e x istin g tan ke rs in the w o r ld , th o se w h ic h at p re se n t c a n n o t b e se rvic e d in a n y U. S. port. T h e n e w su p e rp o rt is e x p e cte d to create th o u s a n d s o f n e w jo b s fo r L o u isia n ia n s a n d incre a se e a rn in g s by m illio n s o f d o lla rs. It s h o u ld a lso h e lp red u ce the c o st o f im p o r t o il as w e ll as im p ro v e ove ra ll efficie ncy. C o m p le t io n in June 1975 o f the N e w O r le a n s S u p e r d o m e s h o u ld p ro v id e a b o o s t to the are a's to u rist industry. A ttra c tiv e fo r sp o rts a n d c o n v e n tio n s, the d o m e is e x p e cte d to b r in g in m illio n s o f to u rist d o lla rs a n n u ally. C o n tr a c t a w a rd s to ta lin g $800 m illio n fo r the c o n stru c tio n o f sh ip s a n d d r illin g rigs b y the A v o n d a le S h ip y a r d s s h o u ld h e lp p ro v id e a d d itio n a l e m p lo y m e n t a n d in c o m e . T o su m up, L o u isia n a has s o m e se ctors c u rre n tly e x p a n d in g that are n o t tie d to n atio n a l d e v e lo p m e n ts a n d w h ic h s h o u ld h e lp esta b lish an e c o n o m ic r e c o v e r y . * O C T O B E R 1,1974 COMMERCIAL BANK AND TRUST COMPANY Franklin, Louisiana Began to remit at par. SEPTEMBER 4,1974 O C T O B E R 1,1974 BARNETT BANK OF SOUTH ORLANDO WAKULLA COUNTY STATE BANK Orlando, Florida Crawfordville, Florida O pened for business as a par-remitting nonmember. Opened for business as a par-remitting nonmember. SEPTEMBER 4, 1974 OCTOBER 7,1974 FLAGSHIP BANK OF NORTH DADE FIRST PORT CITY BANK Miami, Florida Bainbridge, Georgia O pened for business as a par-remitting nonmember. Opened for business as a par-remitting nonmember. SEPTEMBER 10,1974 O C T O B E R 7,1974 GUARDIAN BANK FLORIDA COAST BANK OF CORAL SPRINGS, NATIONAL ASSOCIATION Seminole, Florida Opened for business as a par-remitting nonmember. Coral Springs, Florida Opened for business as a member. Officers: SEPTEMBER 16,1974 NORTHERN TRUST INTERAMERICAN BANK Miami, Florida O pened for business. Stewart Kester, chairman; Robert C. W ilkins, president; Alfred J. Young, executive vice president; Sal DeM arco, Jr., cashier; Mrs. Carol Comyns, assistant operating officer. Capital, $1,000,000; surplus and other funds, $1,000,000. (Cont'd. p. 21) FEDERAL RESERVE BANK OF ATLANTA 17 B e B a d t o n D e f i t s W e o a i s t r i c f t h t 1 9 7 e r A F a r m 4 's c c e r u e d r s by Gene D. Sullivan " It 's an ill w in d that b lo w s n o g o o d " is a p ro v e rb that h a d p a rtic u la r m e a n in g fo r Sixth D istric t c ro p farm e rs in 1974.1 W h ile m o st o f the n a tio n 's c ro p s w e re b u ffe te d a b o u t b y extrem e w e a th e r v a ria tio n s that to o k h e a v y to lls o n total p ro d u c tio n , m o st D istric t c ro p p ro d u c e rs w e re e x p e r ie n c in g a relative ly g o o d year. From July to Jan u ary 's final estim ate, n a tio n a l c ro p p ro sp e c ts p ro g re ss iv e ly d e te rio ra te d as w e a th e r c o n d itio n s o u ts id e the S o u th e a st w e n t fro m o n e extrem e to another. R e c e n tly a n n o u n c e d p la n t in g in te n tio n s fo r 1975 u n d o u b t e d ly reflect last y e a r's e xpe rie nce s, p a rtic u la rly w ith in this regio n. D istric t V e r s u s U . S. C r o p P r o d u c tio n T h e a c c o m p a n y in g charts c o m p a r e the c h a n g e s in p ro d u c t io n p ro sp e c ts o f se le cte d c ro p s im p o rta n t to b o th the D istric t a n d U. S.; first a se vere d ro u th to o k its toll in the central areas o f the c o u n try b e tw e e n July a n d A u g u s t a n d then a b n o r m a lly early frosts a n d freeze s in early fall arre ste d g r o w th a n d further re d u c e d p ro d u c tio n . W it h the e x ce p tio n o f co tto n , p r o d u c t io n in d ic a tio n s o f D istric t c ro p s either in c re a se d o r h e ld n early ste a d y w h ile m isfo rtu n e w a s d e a lin g h ea vy b lo w s e lse w h e re in the c ou n try. T h e f o llo w in g c o m p a r is o n s a d d re ss these c ro p s in the o rd e r o f their n a tio n a l im p o r ta n c e in 1974 a n d in d ic a te the im p o rta n c e o f this r e g io n 's p ro d u c t io n to total U. S. o u tp u t. C orn In d ic a tio n s o f re g io n a l corn p ro d u c tio n , la rge ly in G e o r g ia a n d T e n n e sse e , a c tu a lly in cre a se d fro m July to harvest w h ile in d ic a te d U. S. p ro d u c t io n d e c lin e d b y 1 .5 -b illio n bu sh e ls. D istric t fa rm e rs' b e n e fits w e re e n la rg e d n o t o n ly b y g o o d p ro d u c t io n b u t a lso by a 3 2 -p e rc e n t incre a se in c o rn p rice s re su ltin g fro m 1The Sixth Federal Reserve District includes all of Alabama, Florida, and Georgia, and portions of Louisiana, Mississippi, and Tennessee. This article reports data from the total area of all six states. FEBRUARY 1975, MONTHLY REVIEW the n a tio n 's sh o rt crop. T h e D istric t a c c o u n te d fo r less than 5 p e rce n t o f total U. S. p ro d u c tio n . S u c c e ssiv e Crop E stim ates for D IS T R IC T S T A T E S Mil. Bu. U .S. CORN Soybeans In d ic a te d so y b e a n p ro d u c t io n (m o stly w ith in M is s is s ip p i, Lo u isia n a , a n d T e n n e sse e ) in cre a se d s lig h tly as the se a so n p ro gre sse d , w h ile the U. S. p ro je c tio n w a s d r o p p in g by 2 2 5 -m illio n bu sh e ls. D istric t so y b e a n a cre a ge w a s sh a rp ly h ig h e r in 200 1974, b u t the D istric t's share o f the total U. S. c ro p w a s still less than 15 percent. N e v e rth e le ss, the 25p e rce n t increase in so y b e a n p rice s fro m y e a r -a g o 100 - le vels a m o u n t e d to a su b sta n tia l b o n u s to D istric t farm in c o m e s. C o tto n T h e S o u th e a st sh ared in the n a tio n 's d e c lin in g c o tto n p ro d u c t io n p ro sp e c ts as the se a so n p r o gre sse d, la rge ly b e c a u se o f u n fa v o ra b le w e a th e r in M is s is s ip p i w h e re n early h alf o f this r e g io n 's c ro p is p ro d u c e d . Even as in d ic a te d n atio n a l p ro d u c t io n d e c lin e d b y 3.9 m illio n b a le s a n d a m illio n b a le s fa d e d fro m the in d ic a te d D istric t c ro p, c o tto n p rice s d r o p p e d m o re than 20 cen ts a p o u n d b e lo w the p e a k level in the s p r in g o f the year. Tobacco T o b a c c o w a s the S o u th e a st's C in d e r e lla c ro p in 1974 in term s o f b o th p rice a n d p ro d u c tio n increases. G o o d w e a th e r in c re a se d in d ic a te d p r o d u c tio n (nearly all in G e o r g ia a n d T en n e sse e) fro m 2 5 3 -m illio n p o u n d s in July to 3 0 5 -m illio n p o u n d s th ro u g h y e a r's end. A t the sa m e tim e, U. S. p ro d u c t io n in d ic a tio n s, o f w h ic h the D istric t a c c o u n te d fo r o n ly 15 percent, h e ld n early steady. Prices w e re n ea rly o n e -fifth h ig h e r than the y e a r-a g o level, a d d in g to the b o n a n z a for D istric t to b a c c o farm ers. G r a in S o r g h u m In d ic a te d D istric t p ro d u c tio n h e ld e sse n tia lly ste a d y d u r in g 1974; the su m m e r d ro u th sh riv e le d July Aug. July Jan. FLORIDA i W the U. S. c ro p b y o n e -fo u rth . Prices so a re d 40 p e rce n t a b o v e the y e a r-e a rlie r level, w ith S o u t h TENNESSEE □ eastern farm e rs a ga in re a p in g the d o u b le rew ard o f u n d im in is h e d p ro d u c t io n a n d sh a rp ly h ig h e r prices. H o w e v e r, this re g io n a c c o u n te d for o n ly 1 p e rce n t o f total U. S. p ro d u c tio n . MISSISSIPPI FEDERAL RESERVE BANK OF ATLANTA LOUISIANA I I Aug. Jan.’ DISTRICT STATES I 1=1 U.S. H OTHER i I V//A GEORGIA ‘ Final estimate of 1974 production. 19 G eo rg e ' C h a i r m a n , Pi Lakel M e m b e r b a n k representatives elected b y m e m b e r b a n k s Robert D Manager— Tenne C o m p Ah 2N o n b a n k e r s elected b y m e m b e r ban ks 3 N o n b a n k e r s a pp oi nt ed by B oa rd of Governors, *Ulysses V Executiv Southern Nat Birmir Federal R eserve S y s t e m Note: Expiration dates of t e r m s o c c u r o n D e c e m b e r 31 of the year b eside each name. S a m I. Y a r n e l l — 1 9 7 5 C ha ir ma n, A m e r i c a n National B an k & Trust C o m p a n y Chattanooga, Tennessee J o h n T . O l i v e r , Jr.— 1 9 7 6 P r e s i d e n t , Fir st N a t i o n a l B a n k Jasper, A l a b a m a ♦ Jack P. K e i t h — 1 9 7 7 P r e s i d e n t , First N a t i o n a l B a n k W e s t Point, G e o r g i a John A le xan d er, Jr.— 1 9 7 5 President, City National B a n k of B i r m i n g h a m Birmingham, Alabama L \ \ \ \ Af \ C la re n ce L. T u rn ip se e d — 1 9 7 6 P r e s i d e n t , First N a t i o n a l B a n k Brewton, Ala ba ma \ \ -1975 X rM ic h a e l J. Franct C h a i r m a n , City National B a n k of M i a m i M i a m i , Florida \ } R ich a rd A. C o o p e r— 1 9 7 6 C h a i r m a n , First N a t i o n a l B a n k of N e w Port Ric he y N e w Port Richey, Florida John M ap les, Jr.— 1 9 7 6 Executive V i c e President, \ U n i o n B a n k & Trust C o m p a n y \ Montgomery, Alabama + D . C . W a d sw o rth , Jr.— 1 9 7 7 \ \ \ \ President, S u n President, A m e r i c a n National B a n k of G a d s d e n Gadsden, Alabama D a v i d M a t h e w s — 1976 President, University of A l a b a m a University, A l a b a m a \ \ + H a r o l d B . B l a c h , Jr.— 1 9 7 7 President, X \ \ \ \ J. B l a c h & S o n s , I n c . Birmingham, Alabama f f + M a c D o n e l l Tyre— 1976 F ir st N a t i o n a l B a n k o f O r l a n d o Orlando, F r a n k P . S a m f o r d , Jr. ( C h a i r m a n ) — 1 9 7 5 C h a i r m a n of the Board, L i b e r t y N a t i o n a l Life I n s u r a n c e C o m p a n y Birmingham, Alabama i Federa J a m e s E. L y o n s ( C h a i r m a n ) — 1 9 7 5 President, L y o n s Industrial C o r p o r a t i o n W i n t e r H a v e n , Florida y f / Florida -t-C hau ncey W . Lever— 1 9 7 7 P re si de nt a n d C h i e f E x e c u t i v e Officer, F l o r i d a F ir st N a t i o n a l B a n k Jacksonville, Florida E g b e r t R. B e a l l — 1 9 7 6 P r e s i d e n t , Beall's D e p a r t m e n t S t o r e s B r a d e n t o n , Florida *Gert H. W . S c h m i d t — 1 97 7 President, T e L e V i s i o n 12 of Jacksonville Jacksonville, Florida B I R M I N G H A M B o a r d o JACKSONVILLE F e b r u ; i ns — 1 9 7 5 > er M a r k e t s , I n c . ’ rida T h e Federal A dv is or y C ou nc il m e m b e r f o r 1 9 7 5 is L a w r e n c e A . M e r r i g a n , P r e s i d e n t , eck— 1976 erations, A l u m i n u m \merica inessee T h e B a n k of N e w O rl ea ns a n d Trust C o m p a n y N e w Orleans, Louisiana. /yn— 1 97 7 ’r e s i d e n t , s o u r c e s , Inc. M a b a m a ^ R e a p p o i n t e d o r r e-elected for t h r e e - y e a r t e r m Class C 3 + N e w m e m b e r s i n c e J a n u a r y 1, 1 9 7 5 F. E v a n s F a r w e l l — 1 9 7 5 P r e s i d e n t , M i l l i k e n a n d F a r w e l l , Inc. N e w Orleans, Louisiana C l i f f o r d M . K i r t l a n d , Jr. ( D e p u t y C h a i r m a n ) — 1 9 7 6 President, C o x B ro ad ca st in g C o r p o r a t i o n Atlanta, G e o r g i a * H . G . Pattillo ( C h a i r m a n ) — 1 9 7 7 P r e s i d e n t , Pat tillo C o n s t r u c t i o n C o m p a n y , Inc. Decatur, Georgia Ernest F. Lad d, Jr.— 1 9 7 5 Cha ir ma n, M er ch an ts National B an k d by Mobile, A l a b a m a -1975 /e B a n k R ob ert E. Cu rry President, F ir st N a t i o n a l B a n k Pulaski, T e n n e s s e e C h a rle s W . M c C o y — 1 9 7 6 C h a i r m a n of the B o a r d a n d President, Louisiana National B a n k of Bat on R o u g e Bat on R ou g e , Louisiana Fred R. Law so n — 1 9 7 6 President, B lo u n t Natio nal B a n k Maryville, T e n n e s s e e Jam es H. Jones— 1 9 7 6 C h a i r m a n a n d C h i e f E x e c u t i v e Officer, First N a t i o n a l B a n k o f C o m m e r c e N e w Orleans, Louisiana T . Scott Fille b ro w n , Jr.— 1 9 7 6 P r e s i d e n t , First A m e r i c a n N a t i o n a l B a n k Nashville, T e n n e s s e e + R. B. Lam pton— 1 9 7 7 P r e s i d e n t , First N a t i o n a l B a n k Jackson, Mississippi + W . M. Johnson— 1 9 7 7 P r e s i d e n t , First N a t i o n a l B a n k Sparta, T e n n e s s e e E d w i n J. C a p l a n — 1 9 7 5 P r e s i d e n t , C a p l a n ' s M e n ' s S h o p s , I nc . Alexandria, Louisiana J o h n C. T u n e ( C h a i r m a n ) — 1 9 7 5 Butler, T u n e , a n d E n t r e k i n F l o y d W . L e w i s ( C h a i r m a n ) — 1976 President, M i d d l e S o u t h U ti li ti es , I n c . 11 Nashville, T e n n e s s e e N e w Orleans, Louisiana James W . Long— 1976 Farmer Springfield, T e n n e s s e e * F r e d A d a m s , Jr.— 1 9 7 7 President, C a l - M a i n e F o o d s , Inc . Jackson, Mississippi + J a m e s R. L a w s o n — 1 9 7 7 P re s i d e n t , Fisk U n i v e r s i t y Nashville, T e n n e s s e e N E W )i r e c t o r s NpP° NASHVILLE Boa’ i 1 9 7 5 \ote' o < G °v e V r\OtS ORLEANS] P e an u ts S u c c e ssiv e Crop Estim ates for Mil. Bu. D IS T R IC T S T A T E S G R A IN S O R G H U M In b o th the D istric t a n d the U. S., p e a n u t p ro d u c tio n p ro sp e c ts incre a se d as the se aso n w o re on. H o w e v e r, m o st o f the 3 6 5 -m illio n p o u n d ga in in U.S. in d ic a te d — 800 6 — — 600 4 — — 400 2 — — 200 o u tp u t c a m e fro m the Sixth D istrict, w h e re tw o -th ird s o f the n atio n a l c ro p is p ro d u c e d (G e o r g ia a c c o u n te d fo r the lio n 's share). T he 1 2 -p e rc e n t increase in a ve rag e p rice s o v e r y e a r-a g o levels sh a rp ly im p ro v e d p e a n u t farm e rs' 1974 in c o m e s. Sugar Cane PEANUTS Expected D istric t p ro d u c tio n d e c lin e d slig h tly fro m A u g u s t to y e a r's end, la rge ly fro m h u rric an e d a m a g e to the L o u isia n a crop. T h at state a lso a c c o u n te d for m u c h o f the slig h t d e c lin e in total U. S. su g a r c a n e p ro d u c tio n , m o st o f w h ic h c o m e s fro m the Sixth D istrict. S u g a r p rices in crease d so m u c h in 1974, h o w e v e r, that g ro w e rs w e re e sse n ti ally o b liv io u s to the y e a r's-e n d d e c lin e in p ro d u c tio n . O ranges In d ic a tio n s fo r a b u m p e r 1974-75 harvest w ere still h o ld in g up th ro u g h January. A lt h o u g h p rices w ere r u n n in g 7 p erce n t b e lo w y e a r-a g o levels, sales w e re rep orte d b risk; a n d F lo rid a citrus farm ers, w h o g r o w th re e -fo u rth s o f the n a tio n 's c ro p, se e m h e a d e d fo r a n o th e r g o o d in c o m e year. July Aug. Jan.* July Aug. Jan.* ORANGES Mil. boxes Mil. boxes 300 200 TA B LE 1 VALUE OF PRODUCTION OF MAJOR CROPS — 200 DISTRICT 100 1974 value ($ mil.) — 100 Corn FLORIDA [ ;I LOUISIANA I ) I I MISSISSIPPI ‘ Final estimate of 1974 production. 22 1974 value ($ mil.) 1974 as % Of 1973 697 167 16,330 122 136 9,480 107 Cotton 768 104 2,592 93 Tobacco 331 160 2,124 134 20 164 1,918 878 380 |^ | DISTRICT STATES Sorghum □ u.s. SugarCane V 7Z \ GEORGIA OTHER 1 974 as % o f 1973 1,394 Soybeans TENNESSEE c z ) U. S. 976* 96 400* ♦Excludes Hawaii Source: Based on reports issued by the Statistical Reporting Service, USDA FEBRUARY 1975, MONTHLY REVIEW Value of Crop Production In c r e a sin g p ro d u c t io n a n d c ro p p ric e s a v e r a g in g 25 p e rce n t a b o v e y e a r -a g o le vels in N o v e m b e r c o m b in e d to raise 1974 farm cash receip ts fro m D istric t cro ps. T h e e stim a te d v a lu e o f m a jo r c ro p s in 197 4 w a s u p sh a rp ly fro m 1 9 7 3 's le vels (see T a b le 1), a n d the g a in s o f sp e c ific c ro p s w e re p ro p o r tio n a te ly gre ater than in the U. S. as a w h o le . T h e v a lu e o f th o se c ro p s s h o w n in c re a se d a b o u t $1.5 b illio n fro m 1973 levels. Planting Plans for 1975 R e su lts fro m a January su rv e y o f farm e rs' p la n tin g in te n tio n s fo r three m a jo r c ro p s su g g e s t that 1 974's TABLE 2 PLANTING INTENTIONS FOR SELECTED CROPS IN 1975 DISTRICT 1975 A creage U. S. 1975 a s % of 1974 1975 A creage 4,431 105 76,132 100 Soybeans 10,945 131 57,106 108 61 9,500 68 (000) (000) Corn Cotton 2,535 1975 as % of 1974 Source: Statistical Reporting Service, USDA e x p e rie n c e s h a ve led farm e rs to p la n su b sta n tial a d ju stm e n ts in c ro p a c re a ge s (see T a b le 2). Farm ers in D istric t states p la n to increase so y b e a n p la n tin g s m o st; G e o r g ia farm e rs w ill lead the w a y w ith nearly a 5 0 -p e rc e n t incre a se in 1975 acreage. T o ta l U. S. so y b e a n a cre a ge w ill rise 8 percent. D istric t c o rn a cre a ge w ill g r o w 5 p e rce n t in 1975; su rp risin g ly , total U. S. a c re a ge w ill n o t change prices. d e sp ite 1 9 7 4 's ex tre m ely attractive co rn T h e sto ry is d ra m a tic a lly d ifferen t fo r cotton . T h e c o m b in a tio n o f w e a k m a rk e t d e m a n d as e x e m p lifie d b y relatively lo w prices, ra p id ly in c re a s in g p ro d u c t io n costs, a n d attractive returns fro m alte rn ative c ro p s have led farm e rs to p la n c o tto n acre a ge re d u c tio n s a v e r a g in g a b o u t 30 p erce n t B an k A n n o u n ce m e n ts (C o n t'd . fro m p. 17) O C T O B E R 15,1974 FIRST STATE BANK OF FORT LAUDERDALE Fort Lauderdale, Florida Opened for business as a par-remitting nonmember. fo r the re g io n as a w h o le a n d as m u c h as 60 p e rce n t in G e o rg ia . P la n n e d U. S. a cre a ge is o n ly 68 p erce n t o f 19 7 4 's level. C h a n g in g p rice s a n d w e a th e r c o n d itio n s p rio r to p la n t in g tim e can vastly alter farm e rs' c urren t p lan s. T h e Jan u ary p la n tin g -in te n tio n s rep ort m a y eve n in d u c e s o m e farm e rs to m a k e c h an ge s. N e verth ele ss, it a p p e a rs certain that s o m e dra stic shifts in c ro p p ro d u c t io n are in the m a k in g fo r the 1975 se a so n ; these w ill have fa r-re a c h in g im p a c ts in re g io n a l o ff-fa rm e c o n o m ie s. A ll firm s related to the c o tto n in d u stry in b o th the D istric t a n d the U. S. as a w h o le m a y e x p e rie n c e a m a jo r s h o c k fro m the p la n n e d a cre a ge r e d u c tio n .■ O C T O B E R 28,1974 LANDMARK BANK OF TARPON SPRINGS, NATIONAL ASSOCIATION Tarpon Springs, Florida O pened for business as a member. Officers: Frank M. Harris, chairman; Howard W. Nix, Jr., vice chairman; Thomas B. Reed, Jr., president; Charles E. Hays, executive vice president; W illiam H. Bick ford, cashier. Capital, $400,000; surplus and other funds, $600,000. O C T O B E R 15,1974 O C T O B E R 28,1974 PATTERSON STATE BANK SUMTER COUNTY BANK Patterson, Louisiana Americus, Georgia Opened for business as a par-remitting nonmember. Opened for business as a par-remitting nonmember. FEDERAL RESERVE BANK OF ATLANTA 23 B A N K I N G S T A T IS T IC S Bil. $ C R E D IT * — L o a n s D E P O S IT S * * __ & 4 0 — Total ^ Investm ents 3 6 rJ AJ ~ L o a n s (N et) 2 6 - O t h e r /V 22 - 7 T im e Z. Net ,_______■ D e m a n d Securities U .S . G o v 't . Savings Securities 3 Ay /V AJ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 1 9 7 4 1 9 7 5 1 9 7 6 1 9 7 4 D I S T R I C T L iq u id ity 1 9 7 6 N D T E 5 P r e s s u r e s Large CD’s and Net Federal Time Deposits Funds I I I I * * D a i l \ / a \/p rA (JP f i a n r p c B A N K I N G BO RROW ED I I I I I I I 1 9 7 5 ‘ Figures are for the last Wednesday of each month LATEST MONTH PLOTTED: JANUARY S I X T H I I II I n te n s if y F U N D S S U P P O R T L E N D IN G Discount Activity Other Liabilities Total Borrowed Funds AT L A R G E B A N K S Change in Total Borrowed Funds Loans Change in Loans ($ Millions) 1974 J a n u a ry 4,235 1,073 67 290 5,665 + 245 12,1 8 5 F e b ru a ry 4,327 1,047 101 276 5,751 + 86 12,152 - M a rc h 4,321 1,331 96 476 6 ,224 + 473 12,345 + 193 + 1 85 33 A p ril 4 ,408 1,324 131 569 6,432 + 208 12,647 + 302 May 4,542 1,425 140 625 6 ,7 3 2 +300 12,837 + 1 90 June 4,681 1,228 182 584 6,675 - 57 12,9 4 9 + 112 Ju ly 4 ,7 9 0 1,511 149 512 6,962 + 287 1 3,078 + 129 A ugust 4,885 1,521 1 84 472 7,062 + 100 13,158 + 80 S e p te m b e r 5 ,004 1,592 191 37 3 7,160 + 98 13,217 + 59 O ctob e r 5,251 1,357 141 408 7,157 - 3 1 3 ,1 8 0 - 37 N ovem ber 5,295 1,077 94 385 6,851 -3 0 6 1 3 ,1 4 4 - 36 D ecem ber 5 ,386 960 59 362 6,767 - 13,089 - 55 84 Note: F ig u r e s are a m o n th ly a v e ra g e of W e d n e sd a y figures. 24 FEBRUARY 1975, MONTHLY REVIEW The largest D istric t banks cam e under in te n siv e liq u id ity p re ssu re s as a result o f stro n g lo an d e m a n d s a n d ve ry w e a k d e p o sit in flo w s d u r in g the first seven M e asure s of Liquidity m o n th s o f 1974. In A u g u s t a n d S e p te m b e r, lo an s rose m o d e ra te ly a n d then d e c lin e d th r o u g h the re m a in d e r o f the year; d e p o sit g a in s w e re sm all. W h ile g ro w th in le n d in g w a s n o t as str o n g as that in 1973, the re su ltin g liq u id ity strain s w e re m u c h -1.50 m o re severe b e c a u se o f w e a k d e p o sit gro w th . M e a s u r in g liq u id ity p re ssu res at the largest b a n k s p re se nts p ro b le m s n o t g e n e ra lly e n c o u n te re d w h e n a n a ly z in g sm a ll- a n d m e d iu m -s iz e d ban ks. For ex am p le , the tra d itio n a l lo a n -t o -d e p o s it ratio (L/D ) is fre q u e n tly u se d to reflect liq u id ity pressures. D e /\J /\y - 1 .0 0 L/D p o sits at m o st ban ks, h o w e v e r, are g e n e ra lly local b a la n c e s w h ic h rem ain stab le b e c a u se they are n o t h ig h ly interest-sensitive. But the L /D m e a su re d o e s n o t a d e q u a te ly reflect liq u id ity strain s at large ban ks, w h ic h typ ica lly " p u r c h a s e " o r b o r r o w a large 1974 p o rtio n o f their d e p o sits fro m the intere st-se nsitive m o n e y m arket. T h erefore , a L /D a d ju ste d fo r " p u r c h a s e d " d e p o sits is m o re ap p ro p riate . T h e a d ju ste d lo a n -t o -d e p o s it ratio (L /D *) u se d in this a n a ly sis rep resents total lo an s in c lu siv e o f Federal fu n d s sale s a n d total d e p o sits, w h e re dem and d e p o sits are a d ju ste d fo r d e p o sits o f b a n k s a n d cash ite m s in p ro c e ss o f c o lle c tio n a n d w h e re total tim e d e p o sits are e x clu siv e o f all th o se issu e d in d e n o m in a tio n s o f $100,000 a n d over. (This latter item in c lu d e s all large n e g o tia b le a n d n o n n e g o t ia b le C D 's issu e d by these large banks.) L o o k in g at L /D *, it is clear that liq u id ity p re ssu res in cre a se d d u r in g the first n in e m o n th s o f 1974, w h e n L /D * a d v a n c e d fro m 1.32 to 1.48. S in c e then, the ratio has d e c lin e d to 1.44, in d ic a tin g a slig h t e a sin g in liq u id ity pressures. Bu t these pre ssu res w e re still m o re severe than at the b e g in n in g o f the year. In con trast, the tra d itio n a l L /D is m u c h low er, sh o w s m u c h less variation , a n d su g g e sts less liq u id ity p re ssu re at the e n d o f 1974 than at the b e g in n in g o f the year. Be ca u se o f the pattern o f lo an d e m a n d s a n d d e p o sit c h a n ge s, large b a n k s sh a rp ly in cre a se d their use o f b o rr o w e d fun ds, the reb y re d u c in g liqu idity. From late 1973 to S e p te m b e r 1974, the use o f b o r ro w e d fu n d s ju m p e d a third to nearly $7.2 b illio n ; by the e n d o f the year, b o r r o w in g s h ad d e c lin e d by $400 m illio n . T h e large b a n k s h a ve alternative so u rc e s o f b o rr o w e d fu n d s: se llin g n e g o tia b le an d n o n n e g o t ia b le C D 's ; p u r c h a s in g Federal fu n d s ; b o r r o w in g at the d isc o u n t w in d o w ; b o r r o w in g " o t h e r " fu n d s su ch as E u ro d o lla rs o r term Federal fu n d s; a n d se llin g lo a n s o r se cu rities u n d e r re p u r ch ase a gre e m e n ts o r to a b a n k affiliate o r h o ld in g c o m p a n y su b sid iary . In a d d itio n , there are su ch c o n v e n tio n a l so u rc e s o f liq u id ity as the direct sale o f inve stm en ts, p artic u larly sh o rt-m a tu rity T re asu ry issues. T h e se v a rio u s so u rc e s o f b o rr o w e d fu n d s have diffe re n t liq u id ity im p lic a tio n s th ro u g h v a ry in g FEDERAL RESERVE BANK OF ATLANTA m aturities, sizes a n d certainty o f access. G e n e ra lly , tho se b o rr o w e d fu n d s w ith the sh o rte st m a tu rities (such as o v e rn ig h t Federal fu n ds) create m o re liq u id ity p re ssu res b e c a u se they m u st be "r o lle d o v e r " m o re frequen tly. Be ca u se C D 's have a m in im u m m a tu rity o f 30 d a y s w ith an ave rage a p p r o a c h in g 90 days, a b a n k w ill likely be u n d e r m u c h less p ressu re se llin g a C D than if it b o u g h t Federal funds. Early in 1974, the large b a n k s d e p e n d e d relatively m o re o n sh o rt-m a tu rity Federal fu n d s than o n C D 's ; they a lso relied m o re o n the Federal R eserve d is c o u n t w in d o w . S in c e Se p te m b e r, these b a n k s have n o t o n ly re d u c e d their o ve rall use o f b o rr o w e d fu n d s but, e q u a lly im p o rta n tly fo r liq u id ity c o n sid e ratio n s, have shifte d in to lo n g e r-m a tu rity so u rc e s o f fu n ds. S in c e lo n g e r-m a tu rity fu n d s are m o re stable, liq u id ity im p ro v e s as m atu rity le n g th ens. A n d b y re p a y in g b o r r o w in g s fro m the d isc o u n t w in d o w , b a n k s have an im p o rta n t liq u id ity so u rce to fall b a c k o n if n ee ded . " A d j u s t m e n t c r e d it" from the d is c o u n t w in d o w fo r these b a n k s c o u ld total o v e r h alf a b illio n do llars. T h e liq u id ity p o sitio n o f large b a n k s s h o u ld c o n tin u e to im p ro v e o v e r the c o m in g m o n th s. W it h the g r o w in g recession , lo an d e m a n d fro m b u sin e ss firm s a n d c o n su m e r s is a p t to rem ain w eak. A lso , b a n k s s h o u ld b e g in to e x p e rie n c e stro n g e r d e p o sit in flo w s fro m m o re tra d itio n a l, m o re stable, a n d less e x p e n siv e so u rc e s than tho se rep orte d d u r in g 1974. If this h a p p e n s, the large b a n k s sh o u ld be a b le to re b u ild liq u id ity , e n a b lin g the m to m e et c re d it d e m ands d u r in g the e c o n o m ic u p tu rn w id e ly p ro je cted later this year. JO H N M. GODFREY 25 S ix t h D is t r ic t S t a t is t ic s S e a s o n a lly A d ju ste d (A ll d a ta a re in d e x e s , L a t e s t M onth 197 4 O ne M onth Ago Tw o M o nth s Ago O ne Year Ago O ne M o nth Ago TW o M o n th s Ago O ne Year Ago 5 .4 3 9.6 4 .8 3 9 .4 3 .8 4 0 .9 265 208 281 2 65 209 2 76 264 2 10 2 59 2 35 194 230 177 242 189 241 186 166 184 217 148 1 22.5 153.1 1 77.2 9 4.1 151 1 25 .9 1 55 .8 183.1 9 7.5 153 1 27 .0 158 .2 191 .0 9 2.6 151 129.7 1 55 .4 2 1 4 .0 9 4.8 8 .3 3 9 .6 7 .1 3 9 .8 6 .3 4 0 .0 4 .9 4 0.8 311 238 3 12 311 243 311 314 245 3 09 2 90 228 2 88 168 .2 241 165.7 180 1 68 .6 128 1 67 .2 2 54 1 26.3 1 03.6 1 36 .6 1 32 .4 1 10 .4 127.7 106.0 1 37.6 131 .6 8 5 .8 128.7 1 08.7 1 37.9 135 .4 8 5.4 129.7 1 14.2 1 36.8 152.1 9 1.1 8.6 3 8.6 6 .4 3 9.0 5 .4 3 9.3 4 .4 4 0 .9 265 189 3 29 271 194 328 263 190 323 251 180 2 75 173 259 178 164 164 273 157 2 22 117.3 1 03 .2 120.3 9 4.0 6 9.7 117 .2 102.5 120 .4 8 9.3 6 6.0 116 .9 102 .8 1 19 .9 8 7.8 5 2.9 116.5 1 05 .8 1 18.7 9 2 .6 8 1.9 6.7 4 0.7 7 .3 4 0.5 7 .0 4 0 .4 5 .8 4 1 .0 256 196 258 196 257 195 231 176 181 190 198 150 199 191 198 171 1 26 .8 1 13.8 132.7 123.6 6 5 .4 129.1 123.7 131 .5 1 24 .9 7 6.8 1 2 9 .6 1 2 6 .4 131 .0 126.2 8 1.5 1 30 .4 1 32 .0 1 29 .6 1 36 .9 7 9.5 L a t e s t M o nth 1974 U n e m p lo y m e n t R a te (P e rc e n t o f W o rk F o r c e ) ..........................D ec. A vg. W e e k ly H rs . in M fg. (H r s .) . . . D ec. S IX T H D IS T R IC T IN C O M E A N D S P E N D IN G . D ec. . O ct. C r o p s ..................................................................... . O ct. L iv e s to c k ......................................................... . O ct. In s t a lm e n t C re d it a t B a n k s * / 1 (M il. $) . D ec. 1 75 .7 2 18 240 175 534 5 94 178 .3 172 167 177 578r 637r 1 78 .6 186 170 182 175 .6 201 191 222 570 597 6 64 612 F IN A N C E A N D B A N K IN G M em b er B a n k L o a n s . ...................................... D ec. M em ber. B a n k D e p o s i t s ................................D ec. B a n k D e b i t s * * ......................................................... D ec. F L O R ID A IN C O M E E M P L O Y M E N T A N D P R O D U C T IO N S to n e , C la y , an d G la s s T ra n s p o rta tio n E q u ip m e n t 125 .8 112 .5 115 .8 102.1 124.1 111 .8 126 .8 1 54 .6 104 .2 137.6 139 .3 126 .0 1 3 6 .9 147 .5 153.1 106.3 139.3 8 1.3 132 .0 1 19 .9 1 16 .6 104 .9 1 1 3 .9 1 17 .2 112 .8 130 .4 109.1 124.1 112 .5 1 32 .0 114 .2 133 .5 160 .2 114 .5 136 .3 153 .6 1 26 .2 136 .6 147 .3 148 .6 102 .5 133 .5 8 7 .9 7 .4 6 .3 5 .6 4 .3 5 .0 3 9.1 407 128 681 64 98 148 149 133 136 131 138 131 170 147 132 136 152 108 118 157 250 137 3 .9 39.3 146 137 156 69 98 151 152 133 142 133 138 133 175 150 144 142 155 110 119 156 255 138 3 .0 3 9 .7 207 155 257 73 101 153 152 134 147 135 139 134 174 153 154 149 156 111 121 158 258 137 1.8 4 0 .8 255 258 252 78 110 151 150 136 149 143 137 139 159 153 149 158 152 110 137 149 246 140 . D ec. 280 266 281 269 278 264 257 243 . D ec. 214 191 296 216 194 2 94 215 188 2 89 2 00 177 250 . D ec. . D ec. . D ec. . . . . . . . D ec. D ec. D ec. D ec. D ec. D ec. D ec. . D ec. S ta t e an d L o c a l G o v e rn m e n t F a rm E m p lo y m e n t ............................................ U n e m p lo y m e n t R a te (P e rc e n t o f W o rk F o rc e ) . . . . In s u re d U n e m p lo ym e n t (P e rc e n t o f C ov. E m p . ) ......................... Avg . W e e k ly H rs. in M fg. (H rs .) . . C otto n C o n s u m p tio n ** P e tro le u m P ro d u c tio n * 131 .4 114 .0 112 .2 1 04 .0 1 03 .6 109 .8 1 32 .4 116.0 113 .9 102 .7 107 .4 1 11 .8 112.1 127.1 112.8 118 .7 105 .2 1 25 .8 113 .8 1 29 .8 1 57 .4 106 .3 138.2 141 .8 125 .2 138 .6 147 .9 1 5 2 .9 105 .4 138 .6 7 4.7 . D ec. P r in t in g an d P u b lis h in g 129 .7 1 10 .7 109 .6 103 .6 9 9.6 1 02 .4 1 0 9 .4 125 .5 1 0 9 .4 111 .9 100 .5 120 .7 109 .7 125 .5 1 50 .8 9 3.0 1 36 .4 138.3 126 .5 134 .2 146.7 152 .3 105 .8 1 39 .4 8 6 .0 . . . . D ec. D ec. D ec. D ec. . D ec. . D ec. . D ec. . Nov. . D ec. . Nov. . Nov. P r in t in g a n d P u b lis h in g . Nov. F u rn itu r e a n d F ix t u r e s S to n e , C la y , a n d G la s s . . . . Nov. Nov. Nov. Nov. N o n e le c tric a l M a c h in e ry E le c t r ic a l M a c h in e ry . . T ra n s p o rta tio n E q u ip m e n t . . . . Nov. Nov. Nov. Nov. 111.0 Bank A LA B A M A F IN A N C E A N D B A N K IN G M em b er B a n k L o a n s .............................................D ec. M em b er B a n k D e p o s i t s ...................................... D ec. B a n k D e b i t s * * ......................................................... D ec. G EO R G IA IN C O M E M a n u fa c tu rin g P a y r o l l s ................................ D ec. F a rm C a s h R e c e i p t s .............................................O ct. N o n fa rm E m p l o y m e n t ...................................... D ec. M a n u fa c tu rin g ...................................................D ec. N o n m a n u fa c tu rin g ...................................... D ec. C o n s t r u c t i o n ................................................... D ec. F a rm E m p lo y m e n t .............................................D ec. U n e m p lo y m e n t R a te (P e rc e n t o f W o rk F o r c e ) ..........................D ec. A vg. W e e k ly H rs . in M fg. (H r s .) . . . D ec. F IN A N C E A N D B A N K IN G M e m b e r B a n k L o a n s .............................................D ec. M e m b e r B a n k D e p o s i t s ................................ D ec. B a n k D e b i t s * * ......................................................... D ec. LO U IS IA N A M a n u fa c tu rin g P a y r o l l s ................................ D ec. F a rm C a s h R e c e i p t s .............................................O ct. EM PLO YM EN T N o n farm E m p l o y m e n t ...................................... D ec. M a n u fa c tu rin g ...................................................D ec. N o n m a n u f a c t u r in g ............................................ D ec. C o n s t r u c t i o n ...................................................D ec. F a rm E m p lo y m e n t ................................................... D ec. U n e m p lo ym e n t R a te (P e rc e n t o f W o rk F o r c e ) ..........................D ec. A vg . W e e k ly H rs . in M fg. (H rs .) . . . D ec. M a n u fa c tu rin g P a y r o l l s ......................................D ec. F a rm C a s h R e c e i p t s ............................................ O ct. IN C O M E 182 212 176 162 180 267 170 196 EM PLO YM EN T N o n fa rm E m p l o y m e n t ......................................D ec. M a n u fa c tu rin g .................................................. D ec. N o n m a n u fa c tu rin g ......................................D ec. C o n s t r u c t i o n .................................................. D ec. F a rm E m p lo y m e n t ...................................................D ec. M em b er B a n k L o a n s * ...................................... D ec. M em b er B a n k D e p o s i t s * ................................ D e c . B a n k D e b i t s * / * * ..........................................................D ec. M I S S IS S IP P I IN C O M E 26 N o n farm E m p l o y m e n t ...................................... D e c . M a n u f a c t u r i n g ...................................................D ec. N o n m a n u f a c t u r in g .............................................D ec. C o n s t r u c t i o n ...................................................D ec. F a rm E m p lo y m e n t ................................................... D ec. U n e m p lo y m e n t R a te (P e rc e n t o f W o rk F o r c e ) ..........................D ec. Avg. W e e k ly H rs . in M fg. (H rs .) . . . D e c . F IN A N C E A N D B A N K IN G D e b i t s * / * * ......................... EM P LO YM EN T EM P LO YM EN T F IN A N C E A N D B A N K IN G Lo an s* A ll M e m b e r B a n k s ................................ L a rg e B a n k s ............................................ D e p o sits* M a n u fa c tu rin g P a y ro lls ................................D ec. F a rm C a s h R e c e i p t s .............................................O ct. M a n u fa c tu rin g P a y r o l l s ................................D ec. F a rm C a s h R e c e i p t s .............................................O ct. EM P LO YM EN T 1 18 .0 111.2 121.1 1 22 .9 7 2.3 120.0 119 .7 114.2 115.7 122.2 122.0 1 26 .0 7 8.8 125 .0 5 9 .§ 120 .4 117 .7 121 .7 132.3 8 2.0 . D ec. FEBRUARY 1975, MONTHLY REVIEW O ne M onth Ago L a t e s t M o nth 19 7 4 U n e m p lo y m e n t R a te (P e rc e n t o f W o rk F o r c e ) ..........................D ec. A vg . W e e k ly H rs . in M fg . (H r s .) . . . D ec. Tw o M o nth s Ago O ne Year Ago 4 .8 3 9.3 3.6 4 0.4 L a t e s t M onth 1 97 4 O ne M onth Ago Tw o M o nth s Ago O ne Year Ago EM PLO YM EN T 5 .9 3 7.8 Dec. N o n fa rm E m p l o y m e n t ...................................... Dec M a n u fa c tu rin g ...................................................D D ec. N o n m a n u fa c t u r in g .............................................Dec. Dec. D ec ec. C o n s t r u c t i o n ...................................................D F a rm E m p lo y m e n t ...................................................D D ec ec. U n e m p lo ym e n t R a te (P e r c e n t o f W o rk F o r c e ) ..........................Dec D ec. A vg . W e e k ly H rs . in M fg. (H rs .) Dec. F IN A N C E A N D B A N K IN G M e m b e r B a n k L o a n s * ...................................... D ec. M e m b e r B a n k D e p o s i t s * ................................D ec. B a n k D e b i t s * / * * ......................................................... D ec. 263 218 2 62 268 214 268 258 214 264 261 209 213 177 161 178 148 182 217 183 180 126.7 135.3 148.2 9 1.5 128.5 114.8 136.1 146.8 8 0.7 129.5 117.5 136.2 145.8 7 6.7 128.6 121.5 132.6 142.3 9 0.1 6.3 39.1 5.1 3 9.1 4 .6 3 9.8 3 .0 4 0 .9 274 271 2 06 269 245 192 223 111.2 F IN A N C E A N D B A N K IN G 281 M a n u fa c tu r in g P a y r o l l s ...................................... D ec. F a rm C a s h R e c e i p t s .............................................O ct. ‘ F o r S ix th D is t r ic t a re a o n ly ; o th e r to ta ls fo r e n tir e s ix s t a t e s B a n k D e b its * /* * * D a ily a v e ra g e b a s is fP r e lim in a r y d a ta r-R e v ise d 212 210 277 265 N .A . N ot a v a ila b le Note: All indexes: 1967=100. S o u rce s: M a n u fa c tu r in g p ro d u ctio n e s tim a te d by th is B a n k ; n o n fa rm , m fg . a n d non m fg . e m p ., m fg . p a y ro lls a n d h o u rs, a n d u n e m p ., U .S . D ept, o f L a b o r a n d c o o p e ra tin g st a t e a g e n c ie s ; c o tto n c o n s u m p tio n , U .S . B u re a u o f C e n s u s ; c o n s tru c tio n c o n t ra c t s , F . W . D odge D iv ., M cG ra w -H ill In fo rm a tio n S y s te m s C o .; p e tro l, p ro d ., U .S . B u re a u o f M in e s; fa rm c a s h re c e ip ts a n d fa rm e m p ., U .S .D .A . O th e r in d e x e s b a se d on d a ta c o l le cte d b y t h is B a n k . A ll in d e x e s c a lc u la t e d by t h is B a n k . ■Data b e n c h m a rk e d to J u n e 1971 R e p o rt o f C o n d itio n . D e b it s to D e m a n d D e p o s it A cco u n ts In s u re d C o m m e r c ia l B a n k s in th e S ix th D is tric t (In T h o u s a n d s o f D o lla rs ) P e rce n t Change P e rce n t C hange Decem ber 197 4 fro m D ecem ber 1974 N o ve m b e r 1974 D ecem ber 1973 N ov. D e c . 197 4 1973 Year to D ate 12 m os 1974 fro m 1973 5 ,1 0 8 ,3 2 8 1 1 0 ,4 1 6 4 4 7 ,4 1 7 1 ,3 9 5 ,6 9 5 8 0 2 ,3 1 7 2 5 3 ,1 0 1 4 ,6 7 4 ,1 9 7 1 0 9 ,7 9 2 4 0 1 ,3 3 7 1 ,2 6 3 ,3 6 8 7 1 2 ,6 9 4 2 4 1 ,2 7 8 4 ,0 8 3 ,1 9 6 1 0 4 ,8 8 6 3 3 9 ,2 2 3 1 ,1 4 8 ,3 7 7 6 7 5 ,6 4 9 2 2 3 ,6 2 4 9 09 ,2 01 4 4 0 ,8 9 2 7 5 2 ,9 8 3 3 7 9 ,2 6 3 8 2 8 ,7 5 7 3 8 3 ,8 9 3 +21 2 ,0 8 5 ,3 6 1 3 8 4 ,1 0 7 2 8 1 ,3 5 6 5 ,2 3 8 ,1 3 5 1 ,8 0 0 ,4 4 6 3 4 1 ,3 1 9 2 7 0 ,6 3 6 5 ,2 0 0 ,8 7 4 1 ,9 8 3 ,8 2 2 3 4 8 ,6 4 5 2 9 1 ,4 6 9 4 ,2 5 5 ,0 6 1 + 16 + 13 + 4 4 5 4 ,6 1 6 8 ,5 2 8 ,7 2 7 1 ,6 4 6 ,5 2 4 5 7 5 ,7 3 0 5 5 4 ,1 4 1 6 6 9 ,6 7 3 4 ,3 7 6 ,0 1 7 1 ,3 4 8 ,9 5 3 3 6 4 ,8 5 5 7 ,2 5 9 ,3 3 5 1 ,4 1 8 ,5 3 4 4 9 5 ,1 3 5 5 1 0 ,7 8 5 6 6 8 ,3 7 3 3 ,7 0 6 ,6 3 3 1 ,1 3 3 ,8 6 4 5 6 7 ,0 3 0 7 ,3 6 9 ,8 4 7 1 ,6 3 6 ,5 6 2 4 2 8 ,9 6 9 5 7 4 ,9 0 6 6 7 2 ,0 0 9 4 ,1 5 4 ,7 4 9 1 ,3 0 5 ,1 7 1 + 25 + 17 + 16 + 16 + 8 + 5 + 18 + 19 2 1 3 ,4 0 4 . 1 9 ,6 9 8 ,1 1 3 9 3 7 ,9 4 8 4 7 8 ,0 3 7 9 2 5 ,2 5 6 8 6 1 ,0 7 0 1 8 5 ,6 7 3 1 7 ,4 5 4 ,1 9 9 6 6 6 ,7 7 9 4 6 3 ,1 9 5 8 0 2 ,5 7 8 7 4 4 ,7 4 0 1 9 2 ,6 1 9 1 6 ,4 0 6 ,0 7 7 5 6 8 ,6 0 8 4 2 7 ,9 0 6 5 7 8 ,0 2 1 5 7 3 ,6 9 9 + 15 + 13 + 41 + 3 + 15 + 16 + 11 2 8 3 ,6 0 9 1 ,9 3 3 ,3 6 1 3 3 4 ,3 3 3 2 6 0 ,0 0 6 5 ,1 7 8 ,5 2 5 2 7 9 ,7 6 6 1 ,2 7 4 ,0 0 2 2 8 4 ,9 9 6 2 2 9 ,0 2 8 4 ,5 1 9 ,5 0 3 + 12 + 12 + 14 + 16 + 8 + 14 +70 + 33 + 32 +24 + 18 +47 + 9 + 27 B a rto w - L a k e la n d W in te r H a ve n D a yto n a B e a c h F t. La u d e rd a le H o lly w o o d . . . F t. M y e rs . . . . G a in e s v ille . . . J a c k s o n v ille . . . . M elb ou rne T itu s v ille - C o c o a M ia m i ......................... . . O rla n d o . . . . P e n s a c o la . . . . S a ra s o ta . . . . T a lla h a s s e e . . . . T a m p a - S t. P e te W. P a lm B e a c h A lb a n y ......................... A t l a n t a .......................... A u g u sta . . . . C o lu m b u s . . . . M aco n .......................... Savannah . . . . A le x a n d ria . . B a to n R o u g e . L a fa y e tt e . . . . L a k e C h a r le s . New O rle a n s . + 9 + 1 + 11 + 10 + 13 + 5 + 16 + 1 + 25 + 5 + 32 + 33 + 12 + 24 + 10 + 15 + 9 + 17 + 5 + 10 - 3 + 23 +20 + 9 +20 +22 +21 + 19 + 11 + 13 +20 -20 + 16 + 16 +34 + 8 + + 5 + 3 +20 + 65 + 12 + 60 + 50 + 11 + 2 + 14 + 7 + 19 + 12 + 6 + 9 + 5 + 8 + 24 + 31 + 17 + 51 +26 . . . . . . 3 1 8 ,7 9 1 2 ,1 5 9 ,4 5 3 3 7 9 ,5 0 6 3 0 1 ,2 4 0 5 ,5 8 3 ,7 4 3 B ilo x i- G u lfp o rt . . Ja c k s o n . . . . . 2 9 1 ,4 7 9 1 ,9 9 8 ,2 0 6 2 8 6 ,9 9 7 1 ,9 2 7 ,7 9 8 2 1 8 ,6 6 7 1 ,4 6 2 ,8 0 2 + 2 + 4 + 33 + 37 C h a tta n o o g a . . . K n o x v ille . . . . N a s h v ille . . . . . . 1 .4 3 5 ,7 2 4 2 ,1 2 4 ,6 3 2 4 ,5 2 9 ,0 2 3 1 ,3 1 3 ,4 0 0 1 ,7 7 9 ,5 8 3 4 ,2 0 5 ,4 9 4 1 ,4 7 4 ,9 2 2 1 ,2 5 8 ,9 4 2 3 ,5 8 0 ,4 8 8 + 9 + 19 + 8 - 3 + 10 + 69 + 106 + 26 + 26 1 2 2 ,7 0 6 1 1 2 ,9 5 6 10 6 ,3 7 9 + 9 + 15 O TH ER C EN TER S A n n isto n . . . . +21 +22 + 22 + 12 D ecem ber 1973 N ov. D ec. 1 97 4 1973 Year to D ate m o s. 12 1974 fro m 1973 D ecem ber 1974 N o ve m b e r 1974 1 99 ,8 50 9 1 ,8 9 6 1 8 8 ,9 97 8 6 ,9 3 0 1 81,911 1 0 5 ,9 15 + 6 + 6 + 10 -13 + 8 + 6 2 2 1 ,6 4 3 1 4 2 ,6 63 193,201 4 2 ,6 3 3 9 9 5 ,4 2 3 2 ,2 3 9 ,9 1 8 1 82 ,2 53 1 1 1 ,8 0 8 171 ,1 11 4 1 ,6 8 5 8 8 2 ,2 9 6 1 ,9 1 5 ,9 8 3 2 1 0 ,3 5 4 8 4,70 1 2 1 0 ,3 4 0 4 5 ,6 0 7 1 ,0 1 4 ,2 6 8 1 ,9 2 8 ,9 9 4 + 22 +28 + 13 + 2 + 13 + 17 + 5 +15 +50 - 1 +34 + 4 +15 1 52 ,9 83 9 7 ,2 3 0 167 ,5 17 2 1 ,7 2 2 1 5 3 ,1 98 7 1 ,8 6 7 3 7,71 1 4 5 ,1 0 0 1 2 9 ,9 73 1 1 2 ,1 50 1 61 ,4 40 1 0 3 ,9 4 8 2 0 1 ,0 1 6 2 4 ,1 3 7 141 ,3 77 7 7 ,6 9 3 4 1 ,3 5 4 6 1 ,7 8 5 147 ,9 93 9 8 ,2 4 1 + 10 + 23 + 2 + 27 + 11 + 5 + 7 + 15 + 16 + 9 + 5 + 15 -1 5 + 15 . . . . . . 1 69 ,0 10 1 19 ,6 34 1 7 0 ,2 1 7 2 7 ,6 5 9 1 70 ,4 44 7 5,20 1 4 0 ,1 8 8 5 2,04 1 1 5 0 ,5 22 1 2 1 ,6 9 7 A b b e v ille . . . B u n k ie . . . . Ham m ond . . . N ew Ib e ria . . P la q u e m in e . T h ib o d a u x . 2 3 ,6 8 0 16,891 1 0 6 ,1 49 9 8 ,6 4 2 2 9 ,4 0 0 6 6 ,7 5 0 17,27 2 2 0 ,7 0 0 9 7 ,6 6 2 8 6 ,1 2 5 2 5 ,8 1 9 5 3,47 8 18,20 6 14,84 9 8 5 ,7 4 8 6 6 ,2 7 5 2 4 ,6 9 6 4 3 ,0 8 5 H a ttie s b u rg . L a u re l . . . . M e rid ia n . . N a tc h e z . . P a sc a g o u la M o ss P o in t V ic k s b u rg . . Y a zo o C ity . . . 1 41 ,0 83 7 9 ,7 8 5 1 37,611 7 0 ,1 0 6 1 2 9 ,6 45 7 7 ,2 2 7 1 2 5 ,4 93 5 9 ,4 1 0 1 2 5 ,6 87 7 6 ,4 8 3 1 1 4 ,2 09 6 0 ,1 4 3 . . 1 5 6 ,0 48 7 9 ,3 4 8 5 5 ,1 8 9 1 7 5 ,3 1 5 9 8 ,2 8 3 4 6 ,5 1 0 1 4 6 ,1 30 8 6 ,4 1 3 4 7 ,8 0 4 B ris to l . . . . Jo h n so n C ity K in g sp o rt . . . 1 46 ,8 93 1 5 9 ,1 14 3 0 9 ,7 1 5 134 ,4 28 1 4 2 ,5 73 3 0 6 ,9 2 4 1 1 9 ,7 8 4 1 6 3 ,6 27 2 6 4 ,1 0 3 D o th an S e lm a S T A N D A R D M E T R O P O L IT A N S T A T IS T IC A L A R E A S ' B ir m in g h a m . . . . G a d sd e n . . . . H u n ts v ille . . . M o b i l e ......................... M o ntg o m ery . . T u s c a lo o s a . . . D ecem ber 197 4 fro m . . . . . . . . B ra d e n to n . . M o nro e C o u n ty O ca la . . . . S t. A u g u stin e S t. P e te rs b u rg . Tam pa . . . . A th e n s . B ru n s w ic k D a lto n . E lb e rto n G a in e s v ille G riffin . L a G ra n g e N ew n a n Rom e . V a ld o sta D is t ric t . . . . . . . . . . . . . . . . . . . T o ta l A la b a m a F lo rid a . . G e o rg ia L o u is ia n a M is s is s ip p iTen n esseeJ . 9 5 ,8 9 5 ,6 2 2 8 5 ,1 9 7 ,8 6 1 1 1 ,4 7 6 ,3 1 3 1 0 ,3 6 0 ,8 7 0 3 0 ,6 9 8 ,0 0 7 2 6 ,5 8 3 ,0 3 3 . 2 7 ,4 2 0 ,9 5 4 2 4 ,5 2 9 ,2 1 4 1 0 ,4 2 9 ,4 5 7 9 ,5 4 8 ,5 9 3 3 ,8 7 0 ,5 5 9 3 ,7 7 6 ,9 1 7 1 2 ,0 0 0 ,3 3 2 1 0 ,3 9 9 ,2 3 4 +68 + 8 7 2 16 - 3 - 3 -1 6 + 2 +24 + 5 + 8 + 1 +13 + 18 + 16 + 8 - 9 + 6 + 18 + 37 -1 8 + 9 + 15 + 14 + 25 +30 + 14 + 24 + 49 + 19 + 55 +14 + 30 +15 +23 + 2 + 17 + + + + 9 3 10 18 + 12 + 4 + 17 + 7 + 13 + 12 + 13 -11 -1 9 + 19 + 7 + 8 + 15 + 13 + 23 + 24 + 9 + 12 + 1 + 23 - 3 + 17 + 11 + 5 + 19 +23 + 14 9 ,1 6 5 ,0 9 0 + 11 + 2 5 2 7 ,3 9 0 ,0 0 3 + 1 5 + 1 2 2 1 ,3 8 0 ,3 1 8 + 1 2 + 28 7 ,9 3 1 ,9 1 6 + 9 + 31 + 2 + 26 3 ,0 8 3 ,8 9 0 9 ,3 1 4 ,8 3 2 +15 + 29 +25 + 13 + 26 + 28 +23 + 35 7 8 ,2 6 6 ,0 4 9 + 13 +21 +20 ’ C o n fo rm s to S M S A d e fin itio n s a s of D e c e m b e r 3 1, 1972. - D is t r ic t p o rtio n o n ly r-R e v ise d F ig u re s fo r so m e a re a s d iffe r s lig h tly fro m p r e lim in a ry fig u re s p u b lis h e d in " B a n k D e b its a n d D e p o sit T u rn o v e r " b y B o a rd of G o v e rn o rs o f th e F e d e ra l R e s e rv e S y s te m . FEDERAL RESERVE BANK OF ATLANTA 27 D is t r ic t B u s in e s s C o n d it io n s 1967=100 — Bank Debits S«»s. Adj. Construction Contracts Moving Avg. Farm Cash Receipts *S e a s . adj. figure; n ot an in d ex La te st plotting: Dec., e x ce p t m fg. p ro d uction, Nov., an d farm c a s h receipts. Oct. T h e S o u th e a ste rn e c o n o m y h a s g r o w n d e c id e d ly w e a ke r. Job d e c lin e s sp re a d to n e a rly e v e ry in d u stry , a n d u n e m p lo y m e n t ju m p e d p a st the n a tio n a l rate. F la g g in g a u to sale s w e re a sso c ia te d w ith a c o n t in u in g sh a rp c o n tra c tio n in c o n s u m e r in sta lm e n t de bt. C o n s tr u c tio n a ctivity r e m a in e d d e p re sse d . B a n k lo a n rates fell in th e face o f re d u c e d le n d in g a n d the lo w e r c o st o f b o r r o w e d fu n d s. A g r ic u lt u r a l p ric e s d e c lin e d as farm e rs re v e ale d p la n s to in c re a se c ro p p la n tin gs. T h e slid e in e m p lo y m e n t a n d c o n se q u e n t rise in u n e m p lo y m e n t c o n tin u e d th r o u g h D e c e m b e r . T h e u n e m p lo y m e n t rate ju m p e d to 7.4 percent, le a d in g the n atio n a l rate o f 7.1 p e rce n t fo r the first tim e in o v e r fo u r years. G e o r g ia a n d F lo rid a re c o rd e d the sh a rp e st increases. N o n fa rm jo b s fell fo r the fou rth c o n se c u tiv e m o n th . N e a rly every in d u strial c a te go ry registe re d d e clin e s. T ra n sp o rta tio n e q u ip m e n t jo b s su ffe re d the b ig g e s t d ro p , la rge ly b e c a u se o f strikes. T h e fac to ry w o r k w e e k a n d m a n u fa c tu r in g p a y ro lls slip p e d again . T o ta l in sta lm e n t c re d it o w e d b y c o n s u m e r s to b a n k s d e c lin e d in D e c e m b e r fo r the fo u rth m o n th in su c c e ssio n . T h e c o n tin u e d w e a k n e ss o f a u t o m o b ile sale s w a s a sso c ia te d w ith re d u c e d c re d it ex te n sion s, w h ile lo an re p ay m e n ts re m a in e d at h igh levels. A m o d e s t increase in n o n a u to m o t iv e c o n su m e r g o o d s cre d it a c c o m p a n ie d in te n siv e h o lid a y sale s p ro m o tio n s . H o w e v e r, p e rso n a l lo a n s re g is tered an o ffse ttin g d e clin e , w h ile h o m e rep air a n d m o d e r n iz a tio n cre dit o u ts ta n d in g w a s u n c h a n g e d . D u r in g January, the c o st o f b a n k s ' b o rr o w e d fu n d s d r o p p e d sign ific a n tly . A t the sa m e tim e, b a n k cre d it re c e d e d a n d the interest c o st o f p rim e b u s i n ess lo a n s fell b e lo w 10 p e rce n t fo r the first tim e sin ce last sp rin g. Retail trade e s ta b lis h m e n ts a n d firm s e n g a g e d in the p r o d u c t io n o f fo o d , textiles, a n d a p p are l p a id d o w n the ir c re d it lin es at the larger ban ks. H o w e v e r, firm s p r o v id in g tra n sp o rta tio n a n d c o m m u n ic a tio n se rvices in c re a se d the ir use o f cre d it lines. T h e v a lu e o f re sid e n tia l c o n str u c tio n c o n tra c ts fell to a le vel less th a n o n e - h a lf that o f D e c e m b e r 1973. H o w e v e r, m o d e ra te in flo w s o f d e p o s its to sa v in g s a n d lo an a sso c ia tio n s a n d d e c lin in g interest rates o ffe re d so m e h o p e fo r recovery. O n e c o n tra c t fo r a $1.3 -b illio n e lectric g e n e r a tin g p la n t in M i s sissip p i raised the v a lu e o f n o n re sid e n tia l c o n trac ts to a level tw ic e as h igh as ever re c o rd e d in a sin g le m o n th . W it h o u t this con tract, h o w e v e r, v a lu e s are d o w n fro m the p re v io u s m o n th . Price s o f a g ric u ltu ra l c o m m o d it ie s h a v e d r o p p e d sin ce N o v e m b e r , a n d p re lim in a ry d a ta in d ic a te that the d e c lin e s h a ve a c c e n tu a te d in January. Even so, D istric t farm e rs p lan to e x p a n d 1975 p la n t in g s o f all c ro p s e x ce p t co tto n . L o w e r fee d p ric e s ga v e so m e relief to liv e sto c k p ro d u c e rs, a n d b ro ile r p la c e m e n ts in c re a se d d u r in g recent w e e k s b u t re m a in e d b e lo w y e a r-e a rlie r levels. Note: Data on which statements are based have been adjusted whenever possible to eliminate seasonal influences. 28 FEBRUARY 1975, MONTHLY REVIEW
@FedFRASER