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M O N T H L Y REVIEW B U S IN E S S F E D E R A L R E S E R V E C O N B A N K O F D I T I O N S I N T H E S I X T H R E S E R V E D I S T R I C T Ja n u ary T rade Retail trade in the Sixth District increased sub stantially in December, as it usually does at the holiday season, but wholesale trade declined. Business failures declined in December, but were larger in number and in liabilities than a year earlier. December sales by 49 reporting retail firms increased 67 per cent over Novem ber, an increase larger than usually occurs at that time, and the seasonally adjusted index of daily average sales by 28 of these firms which have reported over a long period of years rose from 105.4 per cent of the 1923-1925 average for November to 113.5 per cent for December. Total sales of the 49 firms during the year 1937 were 6.9 per cent larger than in 1936. Inventories at the close of December were 2 2 .6 per cent smaller than for November, but 5.7 per cent larger than a year ago. Volume of sales by 70 reporting wholesale firms declined 7.8 per cent from November to December and was 10.0 per cent less than a year earlier, but total sales volume for the year 1937 was 11.5 per cent larger than in 1936. By lines, total sales of hardware, drugs and groceries were larger than in 1936, but sales of dry goods and furniture were smaller. B anking Total loans and investments at 22 weekly re porting member banks in leading cities of the District declined more than 17 millions of dollars in the four weeks ended January 12, and were then 41.7 millions C O N D IT IO N O F 22 M EM BER BAN KS IN S E L E C T E D C IT IE S (In Th ousand s of D o llars) C h a n g e From Jan uary 12 D e c .15,193/ Jan.13,1937 1938 $547,884 Lo an s a n d Investm ents........................... 290,624 Lo an s— T o ta l................................................ C om m ercial, in du strial and ag ricu ltu ra l loan s : 11,997 O n S e c u ritie s........................................... O therw ise secu red and u nsecured. . . . 147,698 3,943 O pen m arket p a p e r................................ . . . Lo an s to brokers a n d dealers 5,798 in se cu ritie s......................................... O ther loans for pu rch asin g 15,177 or carryin g se cu rities....................... 27,259 R e a l estate lo a n s ....................................... 1,896 Lo an s to b a n k s ........................................... O ther Lo an s : 25,381 O n S e c u ritie s ......................................... . 51,475 O therw ise secu red and u nsecured. . . . 257,260 Investm ents— T o ta l................................... 152,102 U. S. direct o b lig atio n s....................... 31,162 O bligations gu aranteed by U. S . . .. 73,996 O ther se cu rities..................................... , 105,156 Reserve with F. R. B a n k ......................... 11,621 C a s h in v a u lt............................................... 109,742 Balan ces with domestic b a n k s............ 322,010 Dem and deposits— a d ju ste d .................. , 182,303 Time dep osits............................................. 18,126 U. S. Governm ent dep osits.................... 193,440 Deposits of domestic b a n k s.................. 357 Borrow ings : From F . R. B a n k ............ 61 From o thers..................... ♦ C o m p a ra b le fig u re s not a v a ila b le . E R A L A T L A N T A In December there was a substantial increase in the value of construction contract awards, and a larger than seasonal increase in retail trade in the Sixth District. Other series of figures reflected a decline in industrial activity. At weekly reporting member banks loans and investments have recently declined. F E D — 17,380 — 4,944 — 41,682 + 27,544 — — + 3 602 54 * — 1,912 — 403 — 2,539 — + — 100 127 509 * + 1,650 + 1,246 — 692 — 2,816 — 12,436 — 7,532 — 2,592 — 2,312 + 513 + 930 + 14,149 — 6,488 — 1,277 + 1,262 + 7,738 — 1,465 — 250 * * — 69,226 — 56,181 — 4,110 — 8,935 + 15,311 — 227 — 29,897 — 8,083 + 7,421 — 19,236 — 40,033 + 357 + 61 * 31, 1938 less than a year earlier. Total loans by these banks in creased each week between August 18 and December 22, the aggregate increase amounting to 36.6 millions, but in the three following weeks loans declined 7.6 millions. “Other loans” showed the largest decline, and there were decreases also in all other classifications excepting loans on real estate and open market paper, which increased slightly. Compared with the corresponding report date a year earlier, total loans by these banks on January 12 showed an in crease of 27.5 millions of dollars. Real estate loans and loans to banks were somewhat larger than a year ago, but loans to brokers and dealers in securities and open market paper were smaller. The major part of the increase in total loans was in those now classified in the weekly report as “Commercial, industrial and agricultural” and as “Other loans,” for which comparable figures of a year ago are not yet available. Holdings of investment securities by these banks increased somewhat in the first half of December, largely as a result of Treasury financing on December 15. Between December 15 and January 12, however, investment holdings declined 12.4 millions of dollars, and were 69.2 millions less than a year earlier. The January 12 total is the smallest for any Wednesday since August, 1935. Most of the decline has been in holdings of United States Gov ernment direct obligations, but holdings of obligations guar anteed by the United States and of Other Securities have also declined. Demand deposits-adjusted declined about 15 millions of dollars between December 15 and January 5, but increased about 6.4 millions the following week when they were about 8.1 millions less than on the corresponding Wednesday a year ago. Time deposits have recently declined, and on January 12 were the smallest since August 18, although 7.4 millions greater than a year earlier. Balances with other domestic banks, and deposits held for other banks, have recently increased, but continue smaller than on the corre sponding report date last year. At the Federal Reserve Bank of Atlanta discounts for member banks have continued to decline, and at the end of the year there were reductions in the bank’s participation in the System’s holdings of United States securities, and of purchased bills. Discounts on January 12 were, how ever, somewhat larger than a year earlier, but holdings of F E D E R A L R E S E R V E BAN K O F ATLA N TA (In Th ousand s of D o llars) Jan uary 12 C h a n g e From 1938 D e c .15,1937 Jan.13,1937 B ills D iscou n ted............................... B ills Bouaht in O pen M arket____ In d u strial A d v a n ce s ....................... United States S e c u ritie s.............. Total B ills a n d S e c u ritie s ........ Total R e s e r v e s ................................ Member Bank Reserve A ccou nt. U. S. Treasurer G e n e ral Accoun F . R. Note C ircu la tio n ................... $ 1,061 19 126 107,461 , 108,667 246,068 178,355 3,655 , 158,315 — — — — — — + — — 1,858 80 1 4,777 6,716 650 5,919 9,157 4,918 + 914 — 89 — 265 — 2,480 — 1,920 + 1,317 + 23,597 — 599 — 24,386 2 B u s in e s s C o n d it io n s in t h e S ix t h D E B IT S T O IN D IV ID U A L A C C O U N T S (In Thousand s of D o llars) Decem ber 1937 ALABAM A B irm ing ham ..................................... $99,992 D o th an ................................................ 3,673 M ob ile................................................ 44,758 M ontgom ery................................... 24,184 F L O R ID A Ja ck so n v ille..................................... M ia m i.................................................. P e n sa co la ......................................... T a m p a ................................................ G E O R G IA A lb a n y ................................................ A tla n ta ............................................... A u g u sta ....................... ...................... B ru n sw ick ......................................... C o lu m b u s.......................................... E lb e rto n ............................................ M acon ................................................ N e w n a n .............................................. S a v a n n a h .......................................... V a ld o sta ............................................ LO U IS IA N A New O r le a n s ................................... M ISSIS SIP P I H attiesb u rg ..................................... Jackso n .............................................. M e rid ia n ............................................ V ic k sb u rg .......................................... TEN N ESSEE C h a tta n o o g a ................................... K n o x v ille ........................................... N a sh v ille ........................................... November 1937 $ 83,586 3,205 37,341 24,239 Decem ber 1936 $ 97,244 3,997 37,298 25,809 86,543 41,260 9,575 32,335 68,298 32,865 8,221 26,925 88,859 48,365 10,593 32,090 5,928 229,936 18,682 3,260 15,320 1,299 16,095 2,309 33,655 4,146 5,641 172,393 16,468 2,700 13,299 1,297 15,191 1,938 30,698 3,609 5,855 204,939 22,489 2,884 16,895 1,410 19,387 2,918 39,171 4,889 257,762 209,741 266,714 4,686 29,555 9,613 8,905 4,496 33,671 9,757 9,959 4,642 32,553 10,573 9,904 44,877 33,172 88,275 41,444 26,077 75,192 45,619 29,896 88,831 T O T A L 26 C I T I E S .....................$1,149,795 $ 958,251 $1,153,824 purchased paper, industrial advances, and of Government securities, were less. Member bank reserve deposits have recently increased, and estimates based on latest available figures of deposits indicate that total member bank reserve deposits at the Federal Reserve Bank of Atlanta on January 12 , which amounted to $178,355,000, were about 28 millions of dollars, or 18.8 per cent, greater than legal requirements. A griculture November receipts from the sale of prin cipal farm products, with Government pay ments added, in the six states of this District declined from October, and were only slightly larger than a year ago. For the eleven months of 1937, however, total receipts have been 15.9 per cent larger than for that part of 1936. The De cember crop report issued by the United States Department of Agriculture contains estimates for the year 1937 of cash farm income received from the various crops, in addition to the final estimates of production. In the table are com pared the totals for the six states of this District combined. ESTIM A TES O F P R O D U C TIO N AND IN C O M E — 000 Omitted Six States of the Sixth Fe d e ra l Reserve District Estim ated Estim ated Production C a s h Income* 1937 1936 1937 1936 C o tto n — B a l e s ................................... C o t t o n S e e d — T o n s ............................ Z 'lo o 3,328 Com-bu......................................... 239.807 Wheat—bu....................................... |.272 O a t s — b u ............................. ............ T a m e H a y — T o n s ............................... P e a n u t s — l b s ...................................... P o ta to e s— b u ...... .............................. S w e e t P o ta to e s— b u .......................... T o b a c c o — l b s ........ ............................ P e c a n s — l b s ........................................ P e a c h e s — b u ...................................... A p p le s — b u ................ ....................... G r a p e s — T o n s — A c t u a l...................... S u g a r C a n e — T o n s ............................ R ic e — b u ............................................ O r a n g e s — F lo r id a — B o x e s ................. G r a p e fr u it — F lo r id a — B o x e s ............. * G o v e rn m e n t p a y m e n ts not in c lu d e d . A' , i i i 4 ,1 9 7 16,403 38,439 n n '\T k c'oco 6,359 5,950 7,270 6,291 21,262 24,000 13,000 5,367 2,384 199.279 6,472 12,290 3,530 806,900 11,121 31,992 169.280 22,540 9,660 3,101 6,980 5,419 21,076 22,500 18,100 $289,200 59,230 12,340 5,994 411 4,945 15,915 11,540 6,010 34,200 1,990 5,850 2,050 180 19,625 13,900 $334,765 65,355 11,180 4,180 287 3,615 18,305 9,565 4,965 33,800 2,180 7,660 1,030 112 18,573 12,000 F ed er a l R eser v e D is t r ic t The average price of cotton on the ten designated spot markets has increased somewhat in recent weeks, and on January 20, at 8.61 cents per pound, was 96 points above the low level at 7.65 cents reached on November 4, but was 2.63 cents below the high for the season, at 11.24 cents, on August 5. Sales of fertilizer tax tags in the six states of the Dis trict declined 5.7 per cent in December, were slightly larger than in December a year earlier, and for the five months of the new season, August through December, were approx imately 1 per cent smaller than in that part of the previous season. In d u stry There were further declines from October to November in employment and payrolls at more than six thousand firms in the Sixth District reporting to the United States Bureau of Labor Statistics. In Florida there were increases in wholesale and retail trade, at hotels, and in cigar and cigarette and fertilizer factories. There was a small increase in employment at cotton mills in Mississippi. The value of construction contracts awarded in the Sixth District increased 52.3 per cent from November to Decem ber, but building permits reported by twenty cities declined 13.6 per cent from November and were 32.4 per cent less than a year ago. After declining each month from a total of 34 millions in July to about 13.4 millions in November, the value of contract awards rose in December to 20.3 mil lions, reflecting a large increase in non-residential awards. Residential contracts have declined each month but one since June. Totals for the year 1937 show decreases of 4.0 per cent in building permits, and of 4.4 per cent in contracts awarded, as compared with the year 1936. In Florida and Louisiana the 1937 totals were larger than in 1936. Press reports indicate that operations at lumber mills have in creased somewhat from the low holiday level, but orders, shipments and production in recent weeks continue less than at the corresponding time a year ago. Daily average consumption of cotton by mills in this District declined 10.7 per cent from November to December and was 37.2 per cent less than a year ago, and the smallest for any month since August, 1935. Operations at cotton seed oil mills declined further in December and were at about the level of December a year ago. Total coal production in Alabama and Tennessee in creased 2.4 per cent from November to December, but was 5.1 per cent less than in December, 1936. For the year production in these states was 6.6 per cent larger than in 1936. Production of pig iron in Alabama, on a daily average basis, declined 22.6 per cent in December, and was 25.3 per cent less than a year earlier, but for the year 1937 Alabama production was 29 per cent greater than in 1936. On January 1st eleven Alabama furnaces were active, com pared with 14 a month earlier and with 15 a year ago. Daily average production of electric power declined in No vember, and was slightly less than in November, 1936. Receipts and stocks of both turpentine and rosin declined somewhat from November to December. Price quotations on both commodities have recently reacted from the low levels recorded in the second week of December. B u s in e s s s ix t h C o n d it io n s in t h e S ix t h STO CKS Jan.-Dec. D ec. 1937 Incl. Com pared C om pared W ith W ith Y e a r Ago Dec. 1936 Dec. 1937 Com pared W ith : Nov. 1937 Dec. 1936 R E T A IL TR A D E A tla n ta........................... +71.4 Birm ingham .................. +62.1 C h a tta n o o g a ................ +62.3 M ontgom ery................. +68.6 N a sh v ille ....................... +71.1 New O rle a n s............... +59.0 O t h e r C itie s ................. +72.2 D ISTR IC T (49 F irm s ). +67.0 + 8.2 + 4.5 — 2.2 + 1.2 — 11.4 — 6.9 +6.4 + 1.1 + 1.7 — 2.1 + + + + W H O L E S A L E TR A D E G ro c e rie s....................... + 1.8 — 5.0 D ry G o o d s.....................— 26.0 — 25.4 H a rd w a re .......................— 12.0 — 15.8 Fu rn itu re ....................... — 0.3 — 31.4 D ru g s............................. — 1-3________+ 2.1 T O T A L (70 F ir m s ). . . . — 7.8 — 10.0 Dec. + 5.8 — 4.4 + 16.0 26.8 34.8 34.3 32.0 68.5 42.3 43.9 43.4 47.9 48.£ — 0.8 + 6.1 + 21.6 — 1.6 + 7.2 + 11.5 Nov. 1937 1937 4.9 3.3 8.5 6.9 C o lle c tion Ratio Dec. 1937 28.7 33.3 32.9 — 2.4 + 9.0 + 52.2 + 4.4 — 2.9 + 5.3 + 5.3 + 5.7 + 9.0 + 9.4 + 5.8 + 10.9 (000 Omitted) Dec. 1937 1936 Jan.-Dec. Incl. $ ° D K T R I C T S A W A B D E D _ .. .$20,344 3,393 16,951 3,679 6,128 4,205 3,940 2,700 3,503 B U ILD IN G PERM ITS— 20 C I T I E S ................................. $2,812 $ A tla n ta ....................................... 216 Birm ingham ............................. 129 Jack so n v ille ............................. 361 N a sh v ille ................................... 55 264 N ew O r le a n s ........................... 15 Other C it ie s ......................... 1,786 A la b a m a ................................... 150 C O A L P R O D U C T IO N — Tons A la b a m a ................................... T e n n e ssee ................................. 1,175 430 520 $ $ 13,358 27s $ 3,I s $235,465 $246,235 $ 18,746 4,111 9,247 1,227 4,655 3,081 3,186 2,618 2,224 5,342 13,404 1,735 6,348 4,998 2,838 1,783 3,516 73,365 162,100 29,047 86,919 32,946 62,919 28,875 37,284 69,613 176,622 48,288 72,687 40,139 34,586 36,360 67,663 $ 62,297 $ 64,921 4,422 4,622 2,288 3,404 5,227 5,399 7,630 4,429 4,425 4,481 40,929 39,962 3,257 $ 4,160 286 170 166 225 507 337 247 125 122 254 1,929 3,049 Dec. 1937 Dec. 1936 193.0 342,5 184.5 141.6 153.2 164.8 206.2 116.2 90.8 93.1 107.8 120.1 187.1 326.3 187.3 137.1 164.6 161.0 Birm ingham ............................................................ C h a tta n o o g a .......................................................... N a sh v ille ................................................................ N ew O rle a n s .......................................................... 113.5 207.6 108.5 90.8 91.7 95.8 105.4 192.7 103.8 81.8 81.7 90.6 R E T A IL ST O CEiS U nadjusted D IS T R IC T (24 firm s)........................................... A tla n ta ......................................... Birm ingham .......................................................... C h a tta n o o g a ............................. N a sh v ille ....................................... N ew O rle a n s ............................................. 64.8 99.6 63.7 53.5 48.6 56.9 86.5 143.6 72.4 73.4 61.2 100.9 57.3 35.2 50.1 54.0 72.8 114.5 70.0 60.8 54.0 63.9 77.9 127.1 77.0 60.7 64.6 67.3 116.0 63.0 40.0 55.7 60.7 70.4 53.9 45.2 73.6 76.4 53.0 61.1 83.6 77.5 58.6 60.6 87.8 133.0 134.8 103.6 C O N TR A C TS A W A R D ED — D IS T R IC T R e sid en tial.............................................................. 58.0 24.2 80.5 80.5 42.3 63.1 62.6 140.0 63.2 38.1 29.3 43.9 26.8 32.1 46.2 50.7 135.8 40.1 53.4 38.1 63.6 37.9 43.8 75.0 45.1 92.5 63.4 25.0 14.0 8.7 43.8 8.7 20.5 32.6 28.9 18.5 37.0 61.6 38.9 9.5 35.2 15.2 41.0 19.6 19.7 55.7 P IG IRO N P R O D U C TIO N — ALABAM A* 63.4 81.9 84.9 C O TT O N CO N SU M PTIO N — 3 STA TES* 117.9 137.4 110.3 110.1 132.0 139.5 129.2 128.0 187.6 217.9 167.2 165.5 Nov. 1937 Oct. 1937 Nov. 1936 147.6 150.5 106.2 149.7 131.1 117.9 139.5 139.7 147.6 108.4 144.6 119.2 122.7 136.6 138.5 213.8 87.0 181.7 142.6 163.6 170.9 169.5 R E T A IL S A L E S * U nadjusted D IS T R IC T (28 firm s)............................................ B irm ingham ............................................................ C h a tta n o o g a .......................................................... N ew O rle a n s .......................................................... R E T A IL S A L E S * Adjusted D IS T R IC T (28 firm s)........................................... B U ILD IN G PERM ITS— 20 C itie s ......................... 12,629 5,272 11,730 5,070 Birm ingham ............................................................ Jackso nville............................................................ New O rle a n s.......................................................... 15 Other C itie s ...................................................... Nov. 1937 Dec. 1936 Aug. 1 to Dec. 31 Incl. 1936 1937 156 300 255 1,291 1,104 F E R T IL IZ E R T A G S A LE S — Tons Total 6 Sta te s........................... 92 97 *G eo rg ia, A labam a, L o u isian a and M ississippi. 92 334 337 Nov. 1937 46 98 12 Oct. 1937 E L E C T R IC P O W E R PR O D U C TIO N — k w Hours A la b a m a ................................... 214,020 F lo r id a ....................................... 78,470 G e o rg ia ..................................... 151,963 L o u is ia n a ................................... 131,742 M ississip p i................................ 7,177 T e n n e sse e ................................. 109,431 Total 6 S ta te s....................... 692,803 B y W ater P o w er..................... 390,626 B y F u e ls ..................................... 302,177 275 519 69 863 345 624 78 1,047 (000 Omitted) Nov. Jan.-Nov. Incl. 1936 1936 1937 99,598 $119,410 29,048 19,023 7,618 8,264 19,722 14,508 15,844 24,517 32,260 20,548 14,918 12,738 220,903 75,626 149,976 150,299 7,775 130,200 734,779 379,198 355,581 68.6 1,167 525 145 11 W H O L E S A L E S A L E S (70 firm s)......................... 1,943 252 47 87 B irm ingham .......................................................... .. C h a tta n o o g a .......................................................... N a sh v ille .................................................................. New O rle a n s .......................................................... 2,506 75 139 17 231 FARM IN C O M E—S ix S ta te s.. $ A la b a m a .................................... F lo rid a ....................................... G e o rg ia ..................................... L o u is ia n a ................................... M ississip p i................................. T e n n e sse e ................................. Nov. 1937 201 188 1,070 497r $ 294 4,216 (000 Omitted) C O T T O N C O N SU M PTIO N — B ales A la b a m a ............................. . G e o rg ia ..................................... T e n n e sse e ................................. Total 3 S ta te s....................... C O TT O N S E E D C R U S H ED — T o n s*........................................... Dec. 1937 R E T A IL S T O C K S Adjusted D IS T R IC T (24 firm s)........................................... u ^ a m e (sAo t u a l ) : : : : : : . & 3 D is t r ic t ! 99,064 14,000 9,180 13,104 24,638 26,289 11,853 $729,427 121,718 114,235 129,330 104,568 145,227 114,349 $629,561 94,215 90,086 124,796 91,385 136,212 92,867 245,946 69,811 113,953 143,578 6,248 120,187 699,723 398,338 301,385 2,537,610 833,137 1,585,704 1,536,569 70,161 1,280,219 7,843,400 4,279,810 3,563,590 2,352,771 736,661 1,419,154 1,483,024 63,283 1,357,463 7,412,355 4,389,724 3,022,631 68.8 11.2 EM PLO YM EN T— (A v. for 1932=100) A la b a m a .................................................. F lo rid a ...................................................... G e o rg ia .................................................... L o u isia n a ................................................ M ississip p i....................... ...................... T e n n e sse e ............................................... S ix S ta te s........................................... 144.8 129.0 118.5 132.2 136.5 P A Y R O L LS — (A v. for 1932=100) A la b a m a .................................................. F lo r id a ...................................................... G e o rg ia .................................................... L o u is ia n a ................................................ M ississip p i.............................................. T e n n e sse e ............................................... S ix S ta te s........................................... 219.8 90.7 182.1 154.9 151.1 168.4 175.5 234.1 287.6 398.8 261.4 511.2 114.4 180.2 279.5 299.8 257.0 276.5 372.0 249.6 564.4 E L E C T R IC P O W E R P R O D U C TIO N * A la b a m a .................................................. F lo r id a ...................................................... G e o rg ia .................................................... 111.8 * In c lu d e s G o v e rn m e n t b e n e fit p a y m e n ts . r = R e v is e d . 86.2 66.8 110.1 197.8 110.2 87.9 98.6 93.6 1936 C O M M E R C IA L F A IL U R E S — D IS T R IC T R e sid e n tia l............................... A ll O th e rs................................. A la b a m a ................................... F lo r id a ....................................... G e o rg ia ..................................... L o u is ia n a ................................... M ississip p i............................... Te n n e sse e ................................. R eser v e SIX T H D IS T R IC T B U SIN E SS IN D E X E S (1923-1925=100 except a s noted) d is t r ic t b u s in e s s s t a t is t ic s S A L E S F ed er a l cotton c o n su m p tio n a r e on a d a ily a v e r a g e b a s is . 88.1 193.5 161.2 160.7 181.9 185.1 120.1 207.5 286.9 281.6 292.6 68.8 100.2 11.0 318.1 354.7 196.0 557.2 99.5 197.9 282.3 305.7 256.3 4 B u s in e s s C o n d it io n s in t h e S ix t h F ed er a l R eser v e D is t r ic t INDUSTRIAL PRODUCTION N a t i o n a l S u m m a r y o f B u s in e s s C o n d i t io n s P r e p a r e d b y the B o a r d o f G o v e r n o r s o f the F e d e r a l R e s e r v e Sy ste m . N D U S T R I A L o u t p u t d e c lin e d f u r t h e r in D e c e m b e r a n d , a c c o r d in g to p r e lim in a r y r e p o r t s , s h o w e d lit t le c h a n g e in t h e f ir s t t h r e e w e e k s o f J a n u a r y . P r ic e s o f r a w m a t e r ia ls , w h ic h h a d d e c lin e d s h a r p ly in O c t o b e r a n d N o v e m b e r , h a v e b e e n m a in t a in e d s in c e t h a t t im e . I P In d e x o f p h y sic a l v o lu m e o f p ro d u ctio n , a d ju ste d f o r se a so n a l v a r ia t io n , 1923-1925 a v e r a g e — 100. B y m o n th s, J a n u a r y , 1934, to D ecem ber, 1937. FACTORY EMPLOYMENT AND PAYROLLS E In d e x e s o f n u m b e r em p lo ye d a n d p a y r o lls, w ith o u t a d ju s tm e n t f o r se a so n a l v a r ia t io n , 1923-1925 a v e r a g e = 100. B y m o n th s, J a n u a r y , 1934, to D ecem b er, 1937. In d e x e s c o m pile d b y U . S . B u r e a u o f L a b o r S t a t ist ic s. r o d u c t i o n V o lu m e o f in d u s t r ia l p r o d u c t io n d e c lin e d f u r t h e r in D e c e m b e r a n d th e B o a r d ’s s e a s o n a lly a d j u s t e d in d e x w a s a t 8 4 p e r c e n t o f t h e 1 9 2 3 -1 9 2 5 a v e r a g e a s c o m p a r e d w it h 8 9 in N o v e m b e r . T h e d e c lin e r e fle c t e d c h ie f ly a c o n t in u e d s h a r p c u r t a ilm e n t o f a c t iv it y in t h e d u r a b le g o o d s in d u s t r ie s . S t e e l in g o t p r o d u c t io n a v e r a g e d a b o u t 2 6 p e r c e n t o f c a p a c it y , o u t p u t o f a u t o m o b ile s a n d p la t e g la s s w a s r e d u c e d c o n s id e r a b ly , a n d p r o d u c t io n o f lu m b e r a n d c e m e n t a ls o d e c lin e d . T o t a l o u t p u t o f n o n d u r a b le g o o d s d e c lin e d s e a s o n a lly . T h e r e w a s a s h a r p d e c r e a s e in o u t p u t a t s ilk m ills , a n d c o t t o n c o n s u m p t io n d e c lin e d f u r t h e r . A t w o o le n m ills a n d s h o e f a c t o r ie s , h o w e v e r , o u t p u t w a s m a in t a in e d , f o llo w in g a c o n s id e r a b le p e r io d o f s h a r p d e c lin e . A c t iv it y a t s u g a r r e fin e r ie s in c r e a s e d f u r t h e r . M in e r a l p r o d u c t io n in D e c e m b e r , a s in o t h e r r e c e n t m o n t h s w a s a t a h ig h le v e l. O u t p u t o f c r u d e p e t r o le u m a n d b it u m in o u s c o a l d e c lin e d s e a s o n a lly , w h ile a n t h r a c it e p r o d u c t io n in c r e a s e d s o m e w h a t. I n t h e f ir s t t h r e e w e e k s o f J a n u a r y o u t p u t o f s t e e l a n d a u t o m o b ile s in c r e a s e d s o m e w h a t f r o m t h e e x t r e m e lo w le v e ls re e tc h e d in t h e la t t e r p a r t o f D e c e m b e r . V a lu e o f c o n s t r u c t io n c o n t r a c t s a w a r d e d in D e c e m b e r c o n t in u e d in a b o u t th e s a m e v o lu m e a s in th e p r e c e d in g th r e e m o n th s . D u r in g t h is p e r io d th e r e w a s a d e c lin e in a w a r d s f o r p r iv a t e ly - fin a n c e d p r o je c t s , r e fle c t in g in la r g e p a r t f u r t h e r r e d u c t io n s in r e s id e n t ia l b u ild in g , w h ile p u b lic ly - fin a n c e d w o r k in c r e a s e d . m p l o y m e n t F a c t o r y e m p lo y m e n t a n d p a y r o lls s h o w e d f u r t h e r d e c lin e s b e t w e e n t h e m id d le o f N o v e m b e r a n d t h e m id d le o f D e c e m b e r , a n d e m p lo y m e n t a t m in e s , o n t h e r a i l r o a d s , a n d in t h e c o n s t r u c t io n in d u s t r y a ls o c o n t in u e d t o d e c r e a s e . T h e d e c lin e in th e n u m b e r e m p lo y e d a t f a c t o r ie s w a s la r g e r t h a n in e a r lie r m o n t h s in in d u s t r ie s p r o d u c in g d u r a b le g o o d s , a n d w a s p a r t ic u la r ly m a r k e d in t h e s t e e l, m a c h in e r y , a n d a u t o m o b ile in d u s t r ie s . F o r t h e n o n d u r a b le g o o d s in d u s t r ie s a s a g r o u p , t h e d e c lin e in D e c e m b e r w a s a b o u t t h e s a m e a s in e a c h o f t h e p r e v io u s t h r e e m o n t h s , a f t e r a llo w a n c e f o r s e a s o n a l c h a n g e s . T h e r e w a s s o m e in c r e a s e in e m p lo y m e n t a t s h o e f a c t o r ie s * a n d l it t l e c h a n g e a t p la n t s p r o d u c i n g t o b a c c o p r o d u c t s , w h ile m o s t o t h e r in d u s t r ie s in th is g r o u p s h o w e d f u r t h e r d e c re a s e s . WHOLESALE PRICES D is t r i b u t io n D e p a r t m e n t s t o r e s a le s in c r e a s e d in D e c e m b e r b y a b o u t t h e u s u a l s e a s o n a l a m o u n t, a n d th e B o a r d ’s a d ju s te d in d e x w a s 9 0 p e r c e n t o f th e 1 9 2 3 -1 9 2 5 a v e ra g e a s c o m p a r e d w it h 9 1 p e r c e n t in N o v e m b e r a n d a n a v e r a g e o f 9 3 p e r c e n t in th e f ir s t t e n m o n t h s o f t h e y e a r . M a i l - o r d e r b u s in e s s a n d s a le s a t v a r ie t y s t o r e s s h o w e d s o m e w h a t m o r e t h a n t h e s e a s o n a l in c r e a s e :, w h ile s a le s o f a u t o m o b ile s d e c lin e d s u b s t a n t ia lly . P r e lim in a r y r e p o r t s in d ic a t e t h a t in t h e f ir s t h a lf o f J a n u a r y s a le s a t d e p a r t m e n t s to r e s w e re a t a b o u t t h e s a m e le v e l a s a y e a r a g o . R a ilr o a d f r e ig h t - c a r lo a d in g s c o n t in u e d to d e c lin e in D e c e m b e r a n d in t h a t m o n t h w e r e 1 8 p e r c e n t lo w e r t h a n t h e a v e r a g e f o r t h e f ir s t h a lf o f t h e y e a r , m a k in g a llo w a n c e f o r u s u a l s e a s o n a l c h a n g e . C In d e x e s co m p ile d b y U . S. B u r e a u o f L a b o r S t a tistic s, 1926 = 100. B y weeks, 1934 to w ee k e n d in g J a n u a r y 15, 1938. EXCESS RESERVES OF MEMBER BANKS P o m m o d i t y r i c e s W h o le s a le p r ic e s o f b a s ic c o m m o d it ie s , a f t e r d e c lin in g s h a r p ly in t h e a u t u m n , s h o w e d lit t le c h a n g e in D e c e m b e r a n d t h e f ir s t t h r e e w e e k s o f J a n u a r y . G r a in s , c o tto n , p r in t c lo t h s , s te e l s c r a p , a n d b it u m in o u s c o a l in c r e a s e d s o m e w h a t, w h ile le a t h e r , r a y o n a n d w o o d p u lp p r ic e s w e r e r e d u c e d . P r ic e s o f a w id e v a r ie t y o f f in is h e d in d u s t r ia l p r o d u c t s s h o w e d f u r t h e r d e c lin e s , a n d liv e s t o c k p r o d u c t s c o n t in u e d to d e c re a s e s h a r p ly . B a n k C r e d i t E x c e s s re s e rv e s o f m e m b e r b a n k s in c r e a s e d in t h e f o u r w e e k s e n d in g J a n u a r y 1 9 f r o m $ 1 ,0 1 0 ,0 0 0 ,0 0 0 t o $ 1 ,3 7 0 ,0 0 0 ,0 0 0 a n d w e r e l a r g e r t h a n a t a n y t i m e s i n c e M a y 1 . T h e p o s t - h o lid a y d e c lin e in m o n e y in c ir c u la t io n , w h ic h a c c o u n t e d f o r t h is g r o w t h o f e x c e s s re s e rv e s , w a s la r g e r t h a n th e in c r e a s e th a t o c c u r r e d b e fo r e C h r is t m a s . T h e v o lu m e o f lo a n s a t r e p o r t in g m e m b e r b a n k s in 1 0 1 le a d in g c it ie s d e c lin e d s h a r p l y i n t h e f iv e w e e k s e n d i n g J a n u a r y 1 9 , w h i l e t h e ir h o ld in g s o f in v e s t m e n t s s h o w e d lit t le n e t c h a n g e . D e c lin e s o c c u r r e d in lo a n s t o s e c u r it y b r o k e r s a n d d e a le r s a n d in c o m m e r c ia l lo a n s , w h ic h d e c r e a s e d b o t h in N e w Y o r k C it y a n d in o t h e r le a d in g c it ie s . I n t e r b a n k b a la n c e s w e r e b u ilt u p d u r in g t h e p e r io d , w h ile o t h e r d e p o s it s d e c r e a s e d s o m e w h a t , r e fle c t in g la r g e ly t h e r e p a y m e n t o f b a n k lo a n s , p a r t ly o f f s e t b y a r e t u r n f lo w o f c u r r e n c y f r o m c i r c u l a t io n . M W e d n e s d a y fig u re s o f e stim ate d excess re se rv e s f o r a ll m e m b e r b a n k s a n d f o r selected N e w Y o r k C it y b a n k s, J a n u a r y 3, 1934, to J a n u a r y 19, 1938. o n e y R a t e s a n d B o n d Y i e l d s T h e a v e r a g e r a t e o n n e w is s u e s o f 9 1 - d a y T r e a s u r y b i l l s c o n t in u e d in J a n u a r y a t l e s s t h a n Ys o f 1 p e r c e n t , a n d y i e l d s o n T r e a s u r y n o t e s a n d b o n d s d e c l i n e d t o n e w lo w le v e ls f o r r e c e n t m o n t h s . Y ie ld s o f t h e h ig h e s t - g r a d e c o r p o r a t e b o n d s a ls o d e c lin e d s o m e w h a t , w h ile t h o s e o n t h e lo w e r - g r a d e r a ilr o a d is s u e s r o s e .
@FedFRASER