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ATLANTA, GEORGIA, FEBRUARY 28, 1954 Jn% isIssue: M aking C lo th e s A n A p p ra is a l o f a S ix th D istric t G r o w th I n d u s tr y D istric t B u s in e s s H ig h lig h ts SixtfiDifindStatistics: C o n d itio n o f 27 M em b er Banks in Leading C itie s D ebits to Individual Dem and D eposit A cco u n ts D epartm ent S to re Sales and Inventories Instalm ent Cash Loans SixthVffiridIndexes: d Stocks : . d Stocks acturing Payrolls um Production m o v er o f Dem and D eposits D I S T R I C T B U S I N E S S H I G H L I G H T S D ebits to d e m a n d d e p o s its , seasonally adjusted, continued their downward movement in January to a point well below the August alltime high. • D ep artm en t sto r e s a le s after seasonal adjustment continued down ward in February. • The ra tio o f o u tsta n d in g o rd ers to s a le s at department stores fell further from year-earlier levels during the last three months of 1953 and increased less than seasonally in the first month of 1954. • S h ort-term farm lo a n s outstanding at member banks are less than during last winter, but farm-real-estate loans outstanding total slightly more. • Broiler o u tp u t seems slated for a gain judging from the larger num ber of chicks being placed with North Georgia producers. C otton a c r e a g e in District states will be cut about one-sixth instead of one-fourth as a result of recent congressional action. • M em b er b an k d e p o s its declined more than seasonally in all District states except Mississippi and Florida. M em b er b a n k lo a n s declined less than seasonally during January despite more than seasonal declines in Alabama and Georgia. • B usiness lo a n s at banks in leading District cities slipped during Janu ary largely because of reduced loans to trade concerns and sales finance companies, but in February business loans have been increasing. • R esid en tial m o r tg a g e term s are apparently easing since down pay ments are lower and maturities have lengthened. • Currency retu rn ed from circulation so far this year has added more to member bank reserves than during the corresponding period last year. • M em b er b a n k b o r r o w in g s, that increased immediately after the re duction of this Bank’s rediscount rate on February 9, have since declined and excess reserves continue to exceed borrowings. • U n em p lo y m en t c o m p e n sa tio n claim s increased sharply during D e cember to reach their highest point since the outbreak of the Korean War. • M anufacturing p a y r o lls for December were below the previous year’s level for the first time during 1953 and continued lower in January. • 2 • M A n A K A p p r a is a l I N o f a G C S ix t h One of man’s oldest occupations—the making of clothes —has been hitting the headlines in southern states regu larly in recent years. Scarcely a month goes by without several announcements of new plants being set up within the borders of the Sixth Federal Reserve District. Many of these plants, as well as those already established, are comparatively small but when taken together they add up to the fourth largest manufacturing enterprise in the District. These new plants have created new jobs, in creased output, added to income, and thereby broadened the South’s economic base. Although moving somewhat slower than the general tide of industry, apparel manufacturing in the District has grown substantially since 1939 when viewed in terms of employment, wages, new plants, value added by manu facturing, or for that matter, any of the other measures of economic activity. In 1939, for example, the industry employed 50,000 workers; today it provides some 117,000 jobs, which add around 50 million dollars a year to the District’s income stream. Again, in 1939 value added by apparel manufacturing amounted to 59 million dollars; by 1947 it was 195 million dollars, and between 1947 and 1952 it increased over 50 percent, judging from data available for four of the six states. To develop and expand this industry, both local and national savings have been tapped. Figures that show exactly how much comes from within the region and how much is obtained from outside the region are not available, but of the two sources of investment capital, probably the most important has been the South itself. Many of the larger plants in the District, those employing between 500 and 1,000 workers, have relied almost completely upon local capital and retained earnings. A number of these concerns have also used their own capital to establish branch plants elsewhere in the District. Beyond this, “national” money has flowed into the District. Some of it represents a complete “lock, stock, and barrel” shift from the apparel centers in the North. ProbAPPAREL PLANTS IN DISTRICT STATES V ALU E ADDED BY M AN UFACTURIN G AND SIZE CLA SSIFICA TIO N , 1 9 47 E x p re sse d in P e rce n ta g e s Size Group by N umber of Employees _______ Type of Product Value A dded 58.7 M en’s-boys’ furnishings M en’s-boys’ suits & coats . 6.6 0.3 C hildren’s outerwear . . 3.3 W omen’s-misses’ outerwear 0.5 M i l l i n e r y ........................... Misc. fabricated textiles . 26.1 Misc. apparel & accessories 4.5 100.0 A ll types . . . . L O D is t r ic t T H E G r o w t h S In d u s t r y ably of greater importance, however, have been the open ings of branch plants here by companies that were al ready established outside the District. Many of the firms transferring operations to the South have come from the great apparel manufacturing centers of New York, New Jersey, and Pennsylvania. S p e c ia liz a tio n W ith in th e R e g io n a n d W i t h i n t h e P la n t Around 30,000 establishments throughout the nation turn out practically all the garments worn by our more than 160 million men, women, and children—from those un mentionables next to the skin to the suits, coats, and dresses that meet the eye. An endless variety of clothing is produced, not only because of differences in men’s and women’s clothing and in their ages and sizes, but also because of constantly changing styles and seasons. The 830 plants located in the Sixth District are in a position to satisfy many of the clothing demands of both men and women but generally there is a tendency for producers in this area to concentrate on men’s and boys’ wear, particularly work clothes such as overalls and shirts. In a recent census year, men’s and boys’ wear accounted for two-thirds of the value added by apparel manufacturing in this area. Even so, apparel production is not a simple procedure but rather it involves numerous details and complications. In the production of a man’s sport shirt at a southern plant with a well-organized assembly line, for example, there are around 50 different operations from the cutting of the cloth to the pressing of the finished shirt. To pro duce several other garments at the same time would great ly increase the complexity of production which in turn would very likely result in a decrease in the productive efficiency of the plant. Moreover, the manufacturer may have to make frequent changes in the design and cut of the garment as well as in the type of material used. No longer is the choice of material confined to cotton or wool; instead the whole gamut of new synthetics and combina tions thereof must also be considered. The virtual im possibility of keeping abreast of style changes in a large number of items is in itself enough to compel manufac turers to specialize in one or at most a few items. 1-19 20-99 100 and Over Total S m a ll T o w n s A ttr a c t th e N e e d le s T ra d e 13 17 67 48 0 66 35 42 36 50 33 40 80 24 44 32 51 33 0 12 20 10 21 26 100 100 100 100 100 100 100 100 Besides the concentration on particular types of garments, there has been a tendency in the industry to converge in some states more than in others. Georgia is the District leader, accounting for almost a third of total apparel employment; Tennessee, with about a fourth, ranks sec ond, and is followed by Mississippi, Alabama, Louisiana, • 3 • and Florida in that order. Despite its position as the lowest state on the apparel totem pole, Florida experienced the greatest increase between 1947 and 1953. The chief apparel manufacturing section of the nation lies in the highly industrialized Northeast, where the plants are normally found in the crowded metropolises. In the District, however, the rapidly expanding apparel industry, or needles trade—as it is known, generally has side stepped large cities and has settled for the most part in small towns. More than 40 percent of all apparel pro ducers listed in the manufacturing directories of the Dis trict states are located in communities of less than 10,000 GROWTH AND DISTRIBUTION OF APPAREL MANUFACTURING EMPLOYMENT Sixth District States, 1939-53 Percent Increase Alabam a . . . Florida . . . Georgia . . . Louisiana . Mississippi . . Tennessee District . . . U. S. . . . . 1939-47 1947-53 114 125 34 33 54 25 24 53 103 136 34 4 67 50 50 6 A s Percent of Total Mfg. Employment, 1953 13 5 31 8 17 26 100 ~~ population. In Florida and Louisiana, however, most of the plants are in the larger cities, but together these two states account for only a small share of the District’s apparel output. Although several reasons might be given as to why garment producers have chosen to locate in small towns, possibly the most valid is the abundance of low-priced labor in these places. This is particularly important since about 55 percent of total value added by apparel manu facturing in the District represents labor cost, which is 15 percent greater than that for total manufacturing. Estimates show that even with today’s high-speed ma chines, about two-thirds of an employee’s time is taken up with handling and manipulating the garments. Stitching itself takes but a few moments; far more time is spent in picking up the parts, placing them together properly, putting them under the needle, bringing down the machine attachments that hold the pieces in place, and finally starting the machine. Besides these, other operations such as fitting and pressing require hand work. Three-fourths of the total number of employees in the needles trade throughout the nation are women. The share is somewhat higher in the men’s and boys’ division, which accounts for the biggest portion of the trade in the Dis trict. Hourly wage rates are lower for women than for men in the industry. A Bureau of Labor Statistics compilation for July 1953 shows that rates average from 10 to 20 cents higher for men than women in Mississippi, Georgia, and Tennessee, the only District states for which such information is available. Hourly rates in 1953 for all apparel workers in the District averaged $0.91, which was less than that in any of the other leading industries in the area. For manufacturing as a whole the average rate was $1.34. Special programs like Mississippi’s BAWI have con tributed to the rise of the apparel industry in small com munities. To attract new business, municipalities with little or no industry may offer special inducements such as low rentals of plant space and tax benefits. In Missis sippi, apparel and shoe manufacturing concerns have been more inclined to take advantage of these inducements than have other producers. O p e r a tio n s H ig h ly S e a s o n a l The apparel industry is composed of many firms of diverse sizes insofar as employment is concerned: some employ only a handful of workers; others have a labor force approaching the 1,000 mark. Small operations are in the great majority, however, unlike the situation, say, in the textile and paper industries. According to the 1947 Census of Manufactures, a little over 40 percent of the District’s 830 establishments employed between one and 19 workers; about 30 percent of the firms had between 20 and 99 workers; and about the same percentage had 100 or more employees on the payroll. Apparel manufacturing is a highly seasonal business, a fact that has considerable implication for employees, bankers, suppliers of materials, and others. During certain periods of the year, apparel sales are dull; at other times business booms. At District department stores, for ex ample, about 21 percent of the year’s total sales of men’s and boys’ wear is made during the Christmas month, in contrast to only 5 percent in January. Sales usually pick up a little in the spring and sag during the summer. Similar ebbs and flows occur in retail purchases of women’s apparel and accessories although the peaks and troughs are not so far apart. Such seasonal variations in consumer purchases neces sarily cause similar movements in production and employ ment. Fluctuations in employment, however, are much less pronounced than those in retail sales. Employment in the District is usually lowest in the summer with the June total running at about 97 percent of the monthly average for the year. From the June low, employment in creases 5 percent on the average to the year’s high point in the final quarter. Actual output, however, swings up APPAREL EMPLOYMENT IN DISTRICT SINCE 1 9 4 7 OUTSTRIPS GROWTH IN NATION 1947-49 = 100, Indexes Seasonally Adj. PERC EN T PERCEN T • 4 • MEMBER BANK LOANS TO APPAREL MANUFACTURERS Sixth District, November 1953 PERCENTAGE DISTRIBUTION BY ASSET SIZE OF BORROWER Loans to Manufacturers of Women’s Wear M en’s Wear A s s e t S iz e B o rro w er: of N o . Under $50,000 . . $50,000-$250,000 . $250,000-$750,000 . $750,000-$5,000,000 $5,000,000 and over P e r c e n ta g e D is tr ib u tio n P e r c e n ta g e D is tr ib u tio n ------------------ 5 28 22 44 A m t. A ve ra g e L o a n 1 $ 9,500 9 26,147 78,932 133,070 20 ----------------N o . 35 27 27 A m t. A ve ra g e L o a n 9 $ 6,142 16,024 17 28 26,889 46 100,000 69 11 1 1 100,000 0 0 All Sizes . . 100 100 $ 83,743 100 100 $ 257292 SECURITY AND REPAYMENT METHODS Percentage Distribution of N um ber of Loans T ype of Se c u r it y : Warehouse receipts Endorsement . . Accounts receivable Unsecured . . . O th e r...................... M eth o d of R epaym en t: Single payment . . . Instalment . . . . R e p a y m e n t P e r io d : Demand . . . . 30 days or less . . 30-60 days . . . 60-90 days . . . 90 days-6 months . 6 months to one year Over one year . . M e n ’s W e a r 3 7 W o m e n 's W e a r 0 A ll T y p e s 2 71 13 9 17 70 4 100 100 100 87 13 96 4 90 100 11 100 0 100 8 11 12 68 0 6 15 16 8 8 71 11 10 16 11 5 0 55 4 3 3 100 100 100 51 5 2 4 S o u r c e : Based on data reported by 15 member banks located in the more important apparel producing areas. and down more sharply than is indicated by employment figures since manufacturers will lengthen or cut their work week to meet market conditions before adding to or sub tracting from their labor force. Needless to say, a manu facturer will try to maintain production at as constant a level as possible throughout the year in order to achieve greater efficiency in operations. The extent of seasonal variations in production, of course, depends upon the type of product manufactured. Work clothing producers are in a better position than some others to hold production at a pretty steady rate throughout the year simply because the demand for work clothes tends to be somewhat steadier than for other items of apparel and also because the style of work clothes generally changes little. A manufacturer of sportswear or fashion clothes, on the other hand, may experience quite severe fluctuations unless he is able to diversify his output. Changing seasons, while adding to the spice of life, also add to the production problems of garment manufacturers. D ir e c t f r o m F a c to r y t o R e t a i l e r Apparel manufacturers have experimented with several methods of getting their output from the factory to the consumer. Following World War II, many began to sell directly to retail outlets rather than to wholesalers and jobbers with the aim of absorbing profits going to middle men. Apparently this practice has not been entirely suc cessful since those in the field now say that there has been some tendency recently to revert to the traditional distribu tion channels. Trade people say that with the return of a buyer’s market, manufacturers find it difficult to maintain as adequate sales forces as middlemen can. Much of the industry’s output in the District is sold within the South although some concerns do a nation-wide business and a few also have invaded foreign markets. Specialty shops and department stores are the main out lets for goods flowing off the production lines of District apparel plants. A manufacturer selling directly to these retailers will usually keep several salesmen on the road contacting customers. Regardless of the channel used to move the goods from the factory to the consumer, the growth of retail sales of apparel since 1940 provides evidence of the sharp expansion in the industry. Apparel sales throughout the nation in 1953 amounted to over 11 billion dollars, or an increase of 208 percent from the 1940 mark. Even so this striking gain failed to match that for retail trade as a whole, which jumped 267 percent during that period. During World War II, apparel sales rose somewhat more rapidly than total retail sales because of the greater availability of clothing and the virtual non-existence of major consumer durables like appliances and automobiles. Since the end of the war, however, apparel sales have not kept pace with total retail sales. Between 1945 and 1953 total retail sales in the nation climbed nearly 127 percent, compared with an increase of 44 percent in apparel sales. The lag in apparel sales in the postwar period may in part reflect a shift in consumer spending habits. It is true that people in the lower income brackets spend a greater percentage of their income on clothing; as incomes increase the percentage tends to go down. B a n k F in a n c in g f o r P r o d u c tio n a n d S a l e s From the foregoing, several characteristics of the apparel manufacturing industry stand out. In the first place, the industry is composed of many small firms. Secondly, sales are highly seasonal. Thirdly, the industry has experienced a long-term rising growth trend. Out of these factors mainly, arise the financing needs of the industry. To learn something about the borrowing habits of ap parel manufacturers, this Bank surveyed some 15 com mercial banks in the more important apparel producing areas in the District. Data were obtained on about 130 loans which were on the books as of November 18, 1953. A more comprehensive survey was made in 1946. Capital requirements for apparel manufacturers gen erally are not as great as those for other industries. Al most any building or part thereof can be converted over night into a clothing factory. Working space is often rented, not only by newcomers but also by old and wellestablished firms. Moreover, the chief items of equipment —sewing machines of various kinds—are relatively in expensive. Plant and equipment, thus, accounts for a small share of the total assets of apparel manufacturing con cerns, amounting in many instances to no more than 10 percent. The ratio is considerably larger in most other • 5 • leading industries in the District. Both the new and old concerns ordinarily obtain such capital funds from local savings and retained earnings from operations. The industry’s chief need for financing is to provide working capital, for which it frequently relies upon the banking system. Bank loans are typically short-term loans with maturities of less than a year. About 90 percent of the loans mature in three months or less and 45 percent in two months or less. Since both production and sales are highly seasonal in character, the need for working capital is also seasonal. The experience of one manufacturer illustrates this point. His borrowings usually rise to a peak in the spring as production of summer goods gets under way; thereafter indebtedness tapers off until July when the loans are APPAREL MANUFACTURING FIRMS IN SIXTH DISTRICT Percentage Distribution by Size, and Date of Organization A sset Size (In Thousands of Dollars) 250- 750- Over Under 50A ll 750 5,000 > 5,000 50 250 Year Organized Before 1900 1900-1920 1921-1930 1931-1940 1941-1945 1946-1953 . . . . . . . . . . . . . 0 . . . 0 . . 0 . . . 15 . . . 30 . . . 55 0 14 11 23 23 29 3 29 14 18 7 29 12 44 32 9 3 0 33 33 34 0 0 0 5 24 17 16 14 24 100 100 100 100 100 100 . paid off. In the fall, when he begins production of winter merchandise, he again turns to the bank for funds. Certain sales practices affect the apparel manufacturer’s demand for short-term credit. Sales terms commonly offer ed are a 2-percent cash discount for payment within ten days with a 30-day net. Future or advanced dating, how ever, is practiced rather extensively in the garment in dustry. This simply means that a manufacturer ships merchandise to a retailer shortly after it comes off the assembly line rather than hold it; in stock until the re quested delivery date. The retailer accepts the merchandise before he needs it provided that the invoice bears a future date. For example, a manufacturer of men’s summer suits shipping merchandise to a department store in April may date the invoice as of June 1. If the buyer makes payment on or before June 10, he is allowed the usual cash dis count. In effect, the manufacturer extends credit to the retailer. In order to do so, he himself frequently must obtain funds from commercial banks or other sources. During the war and early postwar years, there was such a strong demand for apparel that sales were, for all prac tical purposes, on a cash basis. Seasonal movements in sales and production were less pronounced with the result that the industry had little or no need for advanced dating. With the return of more normal market conditions, how ever, the needles trade is again using future dating. As might well be expected the largest concerns in the District are also the oldest and it appears that bankers deal mainly with these firms. About half of the firms that were in debt last November to the banks surveyed were organized before 1930 and three-fourths of them were established before 1946. Also, more than half of the num ber of loans made by these banks were to concerns with assets of at least 250,000 dollars or better and more than 30 percent of them went to businesses with assets of over 750,000 dollars. On the other hand, firms with assets of less than 50,000 dollars held less than a fifth of the total number of loans outstanding. The average loan made by District banks to the apparel industry in November 1953 amounted to 69,000 dollars, about a tenth higher than the corresponding 1946 average. The average size loan made to manufacturers of men’s wear was more than three times as large as that to con cerns turning out apparel for wear by the opposite sex. Bankers lending to the apparel trade generally do not re quire any special collateral or security on the loans they make. Over 70 percent of the loans outstanding were unsecured. When security is required, it is usually a pledge of accounts receivable or an endorsement. It is not unusual for firms in the apparel industry in the District, particularly producers of men’s wear, to rely upon factors, located either in the area or in the important financial centers of the nation, for quick cash or bookkeeping and related services. Under one common contractual agreement the producer, in effect, hires the factor as his credit and collection department. As the man ufacturer receives sales orders, he forwards them to the factor for credit investigation and approval. After the merchandise is shipped, the buyer generally deals directly with the factor rather than the manufacturer. The factor is responsible for making collections. Or a manufacturer may wish to employ the factor primarily as a source of funds. Under such an arrange ment, as orders are approved the factor pays the con tractor either as goods are shipped, or at maturity, or at any intervening time, according to the contractual agreement. The factor charges a fee for performing book keeping, credit investigation, and related services. When he advances funds before the invoice expires, he also charges interest since in such a case he performs essen tially the same function as a bank that lends on receivables. Like business in general, expansion in the apparel trade today has eased somewhat in recent months as once again sales are becoming harder to make. Future growth may not be as rapid as that of the last fifteen years; never theless, the industry has made and continues to make an important contribution to the economic well-being of the Sixth Federal Reserve District. Basil A. Wapensky Bank Announcement On February 15, the Community National Bank of Bal Harbour, Bal Harbour, Florida, opened for business as a member of the Federal Reserve Sys tem . The bank began operations with capital of $500,000 and surplus and undivided profits of $250,000 . C. L. Clements, Sr. is President; Catchings T h en el, Kenneth C. Gifford, and C. L. Clem ents, Jr. are Vice Presidents; John J. MacCallum is Assistant Vice President; and John G . Gibbs is Cashier. • 6 • Sixth District Statistics Instalment Cash Loans Condition of 2 7 Member Banks in Leading Cities Volume Percent Change Jan. 1954 from Dec. Jan. 1953 1953 — 27 — 27 — 15 — 13 —41 — 13 — 19 No. of Lenders ReportLender ing Federal credit u n io n s ...........................34 State credit u n io n s............................... 17 Industrial loan companies . . . . 9 Industrial banks...................................... 6 Consumer finance companies . . . 32 Commercial b a n k s .................................32 Outstandings Percent Change Jan. 1954 from Jan. Dec. 1953 1953 + 29 +5 +9 —1 —21 —1 —2 —1 —2 —0 —10 +6 —11 —20 +1 +7 +10 Retail Furniture Store Operations Percent Change Dec. 1953 from Dec. 1952 Nov. 1953 + 39 Number of Stores Item__________________________________________ Reporting Total s a le s ......................................................................142 Cash s a l e s .....................................................................127 Instalment and other credit sales . . . . 127 Accounts receivable, end of month . . . . 136 Collections during m o n t h ...................................136 Inventories, end of month ............................101 —12 —6 0 —7 +1 +68 +6 —1 + 35 — 13 — — 13 W holesale Sales and Inventories* Type of Wholesaler No. of Firms Report ing Sales Percent Change Jan. 1954 from Dec. Jan. 1953 1953 4 +4 Automotive supplies . . . 3 Electrical— Full line . . . 4 “ Wiring supplies 5 — 25 “ Appliances . . — 13 Hardware................................ 16 Industrial supplies . . . 4 — 75 Je w e lry..................................... 7 Lumber and bldg. mat’ ls . +7 4 — 18 Plumbing & heating supplies Refrigeration equipment Confectionery . . . . Drugs and sundries . . 14 Dry goods .......................... 39 Groceries— Full-line “ Voluntary group . 3 +4 “ Specialty lines . 6 —10 12 —8 Tobacco products..................... M iscellaneous............................ 14 —10 T o ta l............................................... 165 —6 *Based on U. S. Department of Commerce Figures. +8 +10 10 6 6 8 —3 +8 —11 +11 +6 —1 No. of Firms Report ing Inventories Percent Change Jan. 1954 from Jan. Dec. 1953 1953 —1 + 18 + 52 — 23 — 23 4 4 +9 + 14 +5 +7 6 —7 —5 5 —1 —8 +5 5 3 —18 —0 6 +12 —4 +4 — 35 4 3 —8 12 19 —1 —10 —6 —2 —6 —1 + 17 —6 3 9 14 101 —8 + 12 —9 +2 —14 -7 Loans and investments— T o t a l ...................................... Loans— N e t ........................... Loans— Gross............................ Commercial, industrial, and agricultural loans Loans to brokers and dealers in securities . Other loans for purchasing or carrying securities . Real estate loans . . . Loans to banks . . . . Other loans .......................... Investments— Total . . . Bills, certificates, and notes .......................... U. S. bonds ...................... Other securities . . . . Reserve with F. R. Bank . Cash in vault ...................... Balances with domestic Demand deposits adjusted . Time deposits.......................... U. S. Gov’t deposits . . . Deposits of domestic banks +is —12 Feb. 17 1954 Jan. 20 1954 Feb. 21 1953 3,041,312 1,309,315 1,330,632 2,995,453 1,282,985 1,304,250 2,962,141 1,219,539 1,240,709 777,732 766,994 12,939 11,428 34,256 86,277 24,393 395,035 1,731,997 +2 +2 +2 +3 +7 +7 709,864 +1 + 10 14,111 + 13 —8 35,114 87,016 1,718 401,980 1,712,468 37,163 96,484 9,054 374,033 1,742,602 —2 —1 ❖ —2 +1 —8 — 11 * +6 —1 682,462 787,695 261,840 514,784 44,726 743,694 701,760 267,014 550,156 47,965 760,634 727,023 254,945 529,351 48,215 —8 + 12 —2 —6 —7 — 10 +8 +3 —3 —7 244,552 2,204,249 579,751 86,062 688,391 27,500 255,224 2,226,176 572,331 62,293 716,801 15,900 239,611 2,178,205 554,385 72,467 722,090 20,500 —4 —1 +1 + 38 —4 +73 +2 +1 +5 + 19 —5 + 34 Debits to Individual Demand Deposit Accounts +5 +9 (In Thousands of Dollars) +i —1 — 15 — 29 +4 +6 -3 —6 +1 —6 +1 Percent Change Inventories Jan. 31, 1954 from Dec. 31 Jan. 31 Place 1953 1953 1953 1953 —11 —63 —10 +6 ALABAMA ................................ —64 —14 B irm ingham ........................... + 15 —9 —62 —1 M o b ile ...................................... Montgomery........................... —59 —4 —52 FLO RIDA ...................................... —5 +2 +1 —64 —9 —6 Ja c k s o n v ille ........................... +1 —47 M ia m i...................................... —5 +3 +1 —53 —4 Orlando...................................... St. Ptrsbg-Tampa Area . . —51 —3 S t. Petersburg . . . . —47 —9 +8 —4 —54 T a m p a ................................. +2 —4 GEORGIA ...................................... —61 —7 +3 A tla n ta * *................................. —60 —4 —6 +4 —62 Augusta..................................... —5 —65 —5 +2 —6 Colum bus................................. M a c o n ...................................... —65 —13 +6 +2 —68 Rome** ..................................... —9 Savannah** ........................... —63 —13 LO U IS IA N A ................................. —4 —56 +6 —0 Baton Rouge ...................... —60 —7 +5 +7 New Orleans........................... —54 —5 +6 —1 —62 —8 +3 —3 M I S S I S S I P P I ........................... Jackson ...................................... —60 —8 + 14 —5 M e rid ia n * * ........................... —65 —7 TENN ESSEE ................................ —63 —4 +2 —2 —2 B r is t o l* * ................................ —69 —11 +3 Bristol-Kingsport-Johnson City** —68 —9 Chattanooga ........................... —62 —3 K n o x v ille ................................ —63 —3 +4 —i s N a sh ville................................. —3 —2 —2 —63 +4 D I S T R I C T . ................................ —59 —6 —3 ^Includes reports from 125 stores throughout the Sixth Federal Reserve District. *ln order to permit publication of figures for this city, a special sample has been constructed which is not confined exclusively to department stores. Figures for non department stores, however, are not used in computing the District percent changes. Item Percent Change Feb. 17,1 9 54 from Jan. 20 Feb. 21 1954 1953 + 17 Departm ent Store Sales and Inventories* Sales Jan. 1954 from Dec. Jan. (In Thousands of Dollars) Percent Change January 1954 from Jan. Dec. 1953 1953 January 1954 December 1953 January 1953 29,522 445,159 20,396 23,544 169,828 977020 35,309 32,341 523,705 20,404 25,106 193,621 101,668 34,947 30,940 464,037 20,067 26,264 178,617 101,375 33,844 —9 — 15 —0 —6 — 12 —5 +1 —5 —4 +2 — 10 —5 —4 +4 460,513 424,835 671,225 101,578 57,436 108,341 215,346 71,100 469,753 437,747 652,738 97,028 60,607 101,597 219,638 68,539 454,368 417,275 650,273 102,546 55,415 112,806 210,354 72,520 —2 —3 +3 +5 —5 +7 —2 +4 +1 +2 +3 —1 +4 —4 +2 —2 40,683 1,190,245 82,434 79,807 4,444 28,218 12,800 79,085 11,950 29,997 119,351 20,619 42,532 1,358,708 88,115 15,006 84,103 5,310 28,373 16,127 90,439 11,959 33,495 138,386 20,343 41,652 1,166,252 95,421 12,768 85,267 4,633 24,539 13,810 80,805 12,256 28,260 133,101 18,420 —4 — 12 —6 — 12 —5 — 16 —1 — 21 — 13 —0 — 10 — 14 +1 —2 +2 — 14 +4 —6 —4 + 15 —7 —2 —3 +6 — 10 + 12 47,912 137,544 58,344 916,862 50,875 141,630 58,617 1,018,635 48,576 136,477 59,354 1,060,753 —6 —3 —0 — 10 —1 +1 —2 — 14 21,252 21,367 22,012 195,982 148,198 211,897 M e rid ian ...................... 27,290 27,569 32,649 Vicksburg ..................... 15,352 16,804 15,790 TENN ESSEE Chattanooga . . . . 248,001 233,065 269,715 K n o xville ..................... 176,427 179,976 175,118 N ash ville ..................... 429,084 508,297 407,206 SIXTH DISTRICT 32 C i t i e s ..................... . 6,021,670 6,492,159 6,215,610 UNITED STATES 345 C itie s.................... 154,294,000 168,587,000 145,919,000 +1 + 32 —1 —9 —3 —8 — 16 —3 +6 —2 — 16 —8 +1 +5 —7 —3 —8 +6 Place ALABAMA A n n isto n ...................... Birmingham . . . . Gadsden ......................... Montgomery . . . . Tuscaloosa* . . . . FLORIDA Jacksonville . . . . Greater Miami* . . . Pensacola ..................... St. Petersburg . . . West Palm Beach* GEORGIA . A tlan ta.......................... A u g u s ta ...................... Brunswick..................... Columbus..................... Elberton ...................... Gainesville* . . . . Savannah ..................... V a ld o s ta ...................... LOUISIANA Alexandria* . . . . Baton Rouge . . . . Lake Charles. . . . New Orleans . . . . M ISSISSIPPI Hattiesburg . . . . . Sixth District Indexes Manufacturing Employment Dec. 1953 Nov. 1953 Dec. 1952 1 9 4 7 -4 9 = 100 Manufacturing Cotton Payrolls Consumption* * Dec. 1953 Nov. 1953 Dec. 1952 Jan. 1954 Dec. 1953 Jan. 1953 93 92 91 92 107r 107 94 9i 106r 120 89 iii 89 130 105 90 92 103r Construction Furniture Contracts Store S a le s * / * * Jan. 1954 Dec. 1953 Jan. 1953 126 224 137 277 85 94 208 205 170 190 113 187 91 147 194 159 135 130 Jan. 1954 Dec. 1953 Jan. 1953 72p 67p 83p 70 77 p 136 150p 140r 140 135p 78 75 98 71 83 60 li7 88p 89p 95p 90 92p 97 lO lp 111 100 99p 96 100 113 91 100 80 82 88 UNADJUSTED 113 105 136 114 110 110 113 114 107 134 116r 114 111 114 114 108r 134r 115r 107 114 115 154 137 187 154 155 156 157 156r 140r 185 155r 158r 153r 160r 155 144 180 158 142 162 159 113 106r 128r 115r 103 113 115 151 132 177 151 151 154 156 154r 144r 183 154r 151r 149 158 152 139 169 155 138 160 158 65 SEASON ALLY ADJUSTED 112 103 130 114 106 109 113 114 109 135 114 110 llO r 114 O ther District Indexes _________ Departm ent Store Sales and Sto cks**_________ __________ Adjusted_________ ________ Unadjusted________ Jan. Dec. Jan. Jan. Dec. Jan. _________________________________1954 1953 1953__________ 1954 1953 1953 D IS T R IC T S A L E S * . . . . 122p Atlanta1 .................................121p Baton Rouge..............................109 Birm ingham .......................... 99 Chattanooga.......................... ...127 Jackson..................................... 102 Jackso n ville ..............................103 K n o x v ille ................................116 M aco n ......................................116 M ia m i.........................................122 N a sh ville ................................ ...121 New O rleans.......................... 118p S t. Ptrsbg-Tampa A re a. . 136 T a m p a .........................................127 D IS TR IC T STOCKS* . . ■142p 127 135 110 121 136 110 116 124 121 126 121 125 139 127 142 125r 94p 124r 92p 113 76 lllr 77 125 95 llO r 74 105r 76 116r 85 129r 83 123r 123 119 82 119r 98p 137 119 120 103 146r____________130p 219 218 183 205 241 179 204 220 226 224 212 207 234 215 125 96r 94 79 86r 94 S ir 78 85 91 125 81 99 121 97 133r 'To permit publication of figures for this city, a special sample has been constructed that is not confined exclusively to department stores. Figures for non-department stores, how ever, are not used in computing the District index. ♦For Sixth District area only. Other totals for entire six states. **D aily average basis. Sources: Mfg. emp. and payrolls, state depts. of labor; cotton consumption, U. S. Bureau Census; construction contracts, F. W. Dodge Corp.; furn. sales, dept, store sales, turnover of dem. dep., FRB Atlanta; petrol, prod., U. S. Bureau of Mines; elec. power prod., Fed. Power Comm. Indexes calculated by this Bank. O R e se rv e B ank C itie s • B ranch B ank C itie s mm D istric t B o u n d a ries — ■B ranch T e rrito ry B o u n d a ries B o a rd o f G o v e r n o rs o f th e F e d e ra l R e se r v e S y s te m Jan. ___________________________________ 1954 Adjusted Dec. 1953 Construction co ntracts*....................... R e sid e n tial............................................. Other ....................................................... Petrol, prod, in Coastal Louisiana and Mississippi** 135 Furniture store stocks* . . . 109r Turnover of demand deposits* 19.2 10 leading cities . . . . 19.8 Outside 10 leading cities . 17.0 Jan. 1953 Jan. 1954 189 157 213 200 164 228 141 153 132 137 112r 143r 118 20.3 21.3 17.8 142 117r 19.0 20.0 15.8 140r 121 19.7 20.3 17.5 138 106p 19.8 Dec. 1953 Nov. 1953 Dec. 1952 Dec. 1953 Elec. power prod., total** . Mfg. emp. by type A p p a r e l...................................... 137 C h e m ic a ls ................................ 121 Fabricated metals . . . . 149 Food................................................ 106 Lbr., wood prod., furn. & fix. 89 Paper and allied prod. . . 143 Primary m e t a ls ......................101 T e x t ile s ...................................... 96 Trans, equip................................ 178 139 122 156 109r 90 144r 101 96 167r 136 116 159 106 95 133 105 102 160 r Revised p Preliminary n.a.Not available Unadjusted Jan. Dec. 1953 1953 20.8 17.3 20.0 21.4 16.1 Nov. 1953 Dec. 1952 n.a. 174 170 140 142 124 160 114r 90 145 139r 117r 165r lllr 95 135r 104r 122 154 111 89 144 100 97 174 101 97 172r 102 156r
@FedFRASER