View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Monthly Review
Atlanta, Georgia

Recession: Southern Style

July • 1958

ji k o

in

j

S i x months ago when we summarized the preceding year’s economic
developments in this District, we found “the slowing down of activity
in the country’s economy touching on the District but lightly.” With six
months in 1958 already gone, we find that the recessionary develop­
ments have spread to most sectors of the District’s economy and to most
areas within the District. Nevertheless, we see that by a good many
measures the District’s economy has reacted less to recessionary forces
than that of the nation.
The final figures for the first six months will undoubtedly show about
the same comparisons as those we can make from the preliminary data
available now. At the end of May, total nonfarm employment, for
example, in the District was down 3.5 percent from the peak reached
last June and 2.3 percent below last May. On the other hand, the nation’s
employers had 4.1 percent fewer workers on their payrolls than in
August 1957, when national nonfarm employment reached its peak.
These comparisons are based on seasonally adjusted data.
It is not clear where economic activity began to decline first—in
the District or in the nation. If it declined sooner in the District, as the
figures on nonfarm employment indicate, the subsequent downward
drift here was not necessarily sharper.

t h is is s u e :

TERM LOANS GAIN
IN IMPORTANCE
ECONOMIC
CHARACTERISTICS
OF THE SIXTH
FIDERAL RESERVE
district

IpVtlCT BUSINESS
HIGHLIGHTS
*XTH DISTRICT
STATISTICS

Recession in District
Follows National
Pattern

^XTH DISTRICT
indexes

Seasonally Adjusted Indexes
U. S. Peak = 100

NONFARM EM PLO Y M EN T
O'ifr.cr _

I

ffaenv
ia n tig f
■4tfarrta




_

OEMANO D E P O SIT S ADJ.
ANO CU RRENCY

u s '^ i

____ _ 90 ,,------- 1
--------1
-------- 1
-------- 1
--------1
-------- L
i_____ I_____ i_____ 1

Most Sectors Affected
In the District, as elsewhere, the impact of the recession
has been heavier in some types of economic activity than
in others, as we see from the economic scoreboard below.
In general, manufacturing has felt the recession most,
durable goods more than nondurable goods.
There are now fewer workers on the payrolls of all
types of manufacturing plants throughout the District,
except at printing and publishing establishments. Lower
employment is reported by the District’s “growth” indus­
tries such as chemicals, paper, and fabricated metals, but
declines in these industries have been less than in many
others. Indeed, in some states employment was higher than
a year ago. As in the nation, employment declined much
more sharply in the primary metals industry and slipped
further in the District’s already depressed textile and
lumber industries. The rate of decline from a year ago
in practically every line of manufacturing, however, was
less than that registered elsewhere in the nation.
Recessionary forces have spread to the nonmanufactur­
ing sectors that provide three times as many nonfarm
jobs as manufacturing. For the District, employment is
slightly less than a year ago, although it is a little
higher in Florida. The trend of employment in Florida,
however, has been downward since last fall. State and
local governments have more workers than a year ago;
so do service firms and finance, insurance, and real estate
firms. All other types of nonfactory employment declined.
Cash receipts from farm marketings in the District
in the first five months of this year were higher than those
in the like period of 1957. Net income, however, is lagging

somewhat because farm costs have increased. Poor
weather conditions so far have reduced cash income from
crops and fruit, but receipts from livestock and poultry
items—beef, pork, eggs, and broilers—are up sharply.
The greater proportion of the District’s farm cash
receipts, however, is obtained in the last half of the
year. Considering last year’s poor growing conditions, the
possibility of favorable weather for the remainder of
this year, and possible price changes, net farm income
in the District for 1958 may top that for 1957.
Personal income for a good many people has been cut
because of the recessionary developments in the Dis­
trict. Nevertheless, considering personal income as a
whole, first-quarter figures show a slight gain over the
corresponding quarter of the preceding year. The great
majority of workers are still employed. Part of the loss
in wage income of the unemployed has been offset by un­
employment compensation and other social security pay­
ments, and some employees are earning higher wages.
Second-quarter data are not yet available, but it seems
likely that total personal income may approach that of
the second quarter of 1957.

Recovery and Resumed Growth
As the second quarter of 1958 ends, there are increasing
signs that the momentum of the recession may be losing
strength, although there is no overwhelming evidence that
an upturn is starting. Having declined less than the nation,
perhaps the economy of this part of the South will not
have so far to travel on the road to recovery. But even
so there is still the question of whether recovery will be
complete until the long-term economic growth of the
area is resumed.
C h a r l e s T . T aylor

Economic Scoreboard
Sixth District and United States
Percent Changes, 1958 From Corresponding Period in 1957
Period

Nonfarm employm ent.........................
Manufacturing ................................
Food ............................................
Textiles ........................................
Apparel ........................................
Lumber and wood products,
furniture and fixtures...............
Stone, clay and glass...................
Primary m e ta ls............................
Fabricated metals.........................
Chemicals ....................................
Transportation equipment.........
Paper and allied products...........
Printing and publishing...............
Nonmanufacturing .........................
Construction ................................
Mining ..........................................
Trade ............................................
Government ................................
Transportation, commumcatio.is,
and public utilities...................
Services ........................................
Finance, insurance, and
real estate..................................
Manufacturing payrolls .....................
Insured unemployment.......................
Construction contracts........................
Cash farm incom e..............................
Department store sales*.....................
New car registrations.........................
Bank d eb its* ........................................
Member bank loans*..........................
Member bank deposits*.....................
Member bank investments*...............

May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
May
January-May
May
January-April
January-May
January-May
January-April
January-May
May
May
May

Alabama
— 3.2
— 8.2
4- 2.4
— 11.0
— 0.9
_ 4.7
— 2.5
— 11.8
— 1.8
— 1.0
— 28.3
0.0
4- 3.8
— 0.7
— 7.9
— 11.5
— 1.3
4- 1.9
_ 1.0
4- 1.5

Florida
+ 0.6
— 0.4
— 8.1
—
— 4.9
_ 8.3
— 5.5
—
+ 2.4
8.2
+
4- 7.8
2.9
+ 3.8
0.8
+
1.2
— 1.2
+ 0.4
+ 2.4
_ 0.9
4- 0.5

1.5
7.3
97.4
20.5
12.0
4.0
28.0
2.6
6.5
5.2
10.9

+ 6.4
4" 4.8
+ :121.1
9.0
+ 7.0
1.0
— 19.4
4.1
44- 9.8
4- 9.7
+ 9.9

4+
+
4—
—
—
44+

iO
utside NewYork.
•Figures for Louisiana, M
ississippi, an T n e e cover District portion of sta only.
d e n sse
te



Georgia
— 3.8
— 10.4
+ 0.3
7.5
— 6.3
_ 8.1
4- 1.2
8.7
— 18.8
+ 4.3
52.2
— 5.0
0.0
— 0.5
+ 3.6
4.0
_ 3.1
4- 2.9
_ 5.2
4- 1.3
+
+
+
+
__
+
444-

0.5
27.0
77.8
7.5
6.0
1.0
26.6
1.3
0.1
5.5
15.1

Louisiana Mississippi
— 2.6
— 0.2
— 5.3
+ 1.4
— 3.3
4.3
_
— 19.1
4- 2.2
— 12.3
_ 3.7
_ 9.9
—
+ 2.9
—
—
_
—
— 4.4
— 9.1
— 19.2
+ 103.2
_ 2.9
— 7.2
— 4.0
+ 1.8
— 0.8
1.9
_ 4.3
+ 2.5
_ 10.1
2.3
_ 2.4
— 0.6
+ 2.7
+ 0.3
_ 3.3
_ 8.8
— 1.4
— 0.3
+
+
+
_
__
+
+
4-

1.4
2.0
96.0
21.2
13.0
5.0
22.0
1.2
3.2
1.6
1.3

Tennessee
— 4.0
— 6.5
— 10.0
— 0.3
— 0.5
__ 6.6
— 11.9
— 25.6
— 3.6
— 4.7
— 36.1
— 8.0
+ 1.5
2.7
— 11.3
— 4.8
_ 3.5
4- 2.9
_ 9.4
— 0.7
_
1.6
+ 1.8
_ 6.8
+ 4.7
+ 34.4
+ 46.7
37.1
+ 4.5
+ 11.0
+ 4.0
6.0
3.0
_ 30.5
_ 27.6
__ 0.0
+ 4.2
+ 18.9
+ 7.3
+ 22.2
+ 9.9
4- 22.6
4- 9.2

Six
States

— 2.2
— 6.3
— 4.2
_
7.4

U
nited
States
_ _ 3.8
_ 10.3
_
2.4

__

8.6

— 2.8

__

4.9

_
7.7
— 4.4
— 14.9
— 3.7

_
-

8.7
9.7

— 2.0

_
__
__
_

12.5
4.9
19.2
3.1

1.8
+ 0.8

Z

0.8

— 22.9
— 4.1

3.1
8.3
1.7
2.3

_ 2 .0
0
+ 0
.1

4.3
_ _ 10.7

_ 1
.2
+

29

— 4.1

__

6.6

+ 0.2

+ I-6

+ 2.3
_
4.5
+ 71.1
— 7.6

Z 12.2

+ 8.0

— 3.0
_ 24.3

+ 1
-1
+ 6.1
+

7.4

+

9.5

4-

I-5

+ 105.9
Z 6.7

+ 1.0
0

Z

2.0

—

232

X

13.1

_ 2.31
+ 5.5
14
X

Term Loans Gain In Importance
District bankers are making more and more credit avail­
able to business customers on a long-term basis. In midOctober 1957, one outstanding business loan out of three
was originally granted for a term of over one year. Two
years earlier, less than one in five was a term loan, that is,
with a maturity of over one year.
These data are from the Survey of Business Loans as
of October 16, 1957, conducted by this Bank in coopera­
tion with the Board of Governors of the Federal Reserve
System. The Survey revealed that on that date District
member banks had 33,643 term loans amounting to 445
million dollars, outstanding to business firms. Two years
earlier, the date of a similar survey, they had 21,176
loans, totaling 300 million dollars. This represented a gain
of 59 percent in number and 49 percent in amount. In
contrast, the dollar amount of short-term loans, those
with original maturities of one year or less, increased
only 21 percent in the two-year period.
Term loans have gained favor rapidly in the postwar
period, as is illustrated by the rise from 76 million dollars
in 1946 to 445 million in late 1957. Most types and sizes
of businesses are now receiving a greater proportion of
their bank credit in this form. On the other side of the
desk, most bankers are finding longer maturities a feasi­
ble means of employing bank funds.
Bankers have adapted their lending practices to meet the
needs of business firms who had to supplement their
own capital with large amounts of borrowed funds in
order to expand productive capacity during recent years.
They have financed equipment purchases under condi­
tional sale agreements and have provided for instalment
Payments on term loans. They have also directed more
attention to the long-run prospects of a business in passing
on loan applications. Taken together these developments
suggest that today’s bankers view term loans somewhat
differently than bankers a generation ago, who thought

bank loans should be restricted to self-liquidating loans of
very short term.
Although banks of all sizes located in all sections of
the District make term loans, most of the dollar volume is
concentrated at larger banks. Banks with deposits over
100 million dollars, for example, accounted for 52 percent
of the dollar volume of term loans. Banks with deposits
between 10 million and 100 million dollars held 42 per­
cent of term loans outstanding and those with deposits of
less than 10 million dollars held only 6 percent.
Sixth District banks increased their term loans to most
types of businesses between 1955 and 1957. Loans to
trade and service firms, the most important long-term
borrowers, rose 63 percent and 28 percent, respectively.
It is also significant that sales finance companies and food
processors, the only business groups to show a decline in
total loans, enjoyed a sizable increase in term loans.
Although most size groups shared in the rise in term
loans, the smaller firms tended to show the greatest rate of
gain. Firms with assets of less than 250,000 dollars in­
creased their term borrowings 69 percent, compared with
42 percent for large firms. In contrast, short-term loans to
small business increased only slightly between 1955 and
1957, but rose sharply to large firms.
Interest rates of all types rose during this period in re­
sponse to the heavy demand for funds. Rates on term loans
were no exception. The average rate charged on loans
of over one year maturity rose from 4.7 percent in 1955
to 5.8 percent in 1957, an increase of 1.1 percentage
points. Rates on short-term loans advanced somewhat less,
however, from 4.5 percent to 5.2 percent.
The 1957 Survey indicates that District bankers are
extending a sizable amount of funds on a long-term basis
to new businesses. About 40 million dollars, or 9 percent
of the total amount of business term loans outstanding,
went to firms organized in the preceding two years.
W. M. D avis

Business Loans with Maturities of Over One Year
Sixth District Member Banks, October 5, 1955, and October 16, 1957
___

(Millions of Dollars)

All Businesses*
1955
1957
All b u s i n e s s e s ..........................................
297.8
444.6
wufacturing and mining, total .
61.8
108.8
F o o d , liq u o r, a n d t o b a c c o
. .
10.2
11.4
T e x tile s, a p p a r e l, a n d l e a t h e r . .
10.2
14.5
M e tals a n d m e ta l p r o d u c t s
39.8
12.5
T ra n s ., c o m ., a n d p u b . u tilitie s .
13.3
14.5
A ll o t h e r .................................................
29.8
14.4
Trade, total . . . . . . . .
113.2
69.5
W h o le s a le t r a d e ...................................
22.1
30.4
R e ta il t r a d e ..........................................
82.8
47.4
Other, total . . . . . . . .
222.6
166.5
C o m m o d ity d e a l e r s ............................
3.1
.7
Sales f in a n c e c o m p a n ie s .
. .
1.1
4.0
T ra n s ., c o m ., a n d p u b . u tilitie s .
44.8
47.2
C o n s t r u c t i o n ..........................................
27.4
18.6
R e a l e s t a t e ..........................................
29.1
63.4
S e rv ic e f i r m s ..........................................
56.4
44.0
_All other nonfinancial businesses
25.8
23.5
t°ans to firms whose size was not ascertained.
-— Business of Borrower__________

‘L ess th
Digitized a n $ 5 0 , 0 0 0 .
for FRASER


______
Assets of Borrowers
$250,000- $5,000,000
Less than $250,000
1957
1955
1955
1957
208.8
89.9
152.0
135.5
25.5
60.7
13.9
24.1
5.4
4.9
3.9
5.2
4.8
8.0
.6
1.6
3.5
30.5
3.7
5.1
3.2
4.9
1.5
3.5
9.0
4.2
12.4
8.3
44.2
29.3
51.3
31.4
13.5
18.0
10.0
7.3
26.2
17.9
41.3
22.0
103.9
78.6
76.6
46.7
—
1.1
1.2
.6
1.2
.7
2.8
.2
25.3
22.0
7.5
5.0
15.6
8.5
7.1
9.2
32.1
17.3
19.1
7.3
17.7
17.3
31.8
18.4
10.9
12.8
7.1
6.0

Over $5,000,000
1955
1957
51.9
57.7
21.9
20.5
.3
1.2
4.6
4.9
5.2
2.8
9.2
4.9
1.2
8.1
4.6
16.0
.6
2.0
4.0
14.0
26.8
19.8
.8
—
—
—
10.6
19.6
**
—
.1
3.0
2.5
3.7
1.7
4.6

The first revision o f

E c o n o m ic

C h a r a c t e r i s t i c so f

t h e

is now available for dis­
tribution: This study classifies economic data for the District
by state and 27 trade and banking areas. Some o f the infor­
mation is discussed below. Individual copies o f the complete
study may be obtained without charge by addressing the
Research Department, Federal Reserve Bank o f Atlanta.

S i x t h

Because an analysis of economic developments in a region
is likely to be rather complex, there is a tendency to at­
tempt to simplify the picture by generalizing. The analyst
must remember, however, that generalizations for an entire
area may not be applicable to smaller sections within
that area, where the economic structure may be entirely
different. This is particularly true for an area as large as
the Sixth Federal Reserve District, comprising Alabama,
Florida, Georgia, and part of Louisiana, Mississippi, and
Tennessee.
To further economic analysis of various sections within
the Sixth District, the Federal Reserve Bank of Atlanta has
compiled statistics on income, employment, sales, popula­
tion, and banking, not only for the entire District and the
states within the District, but, when possible, for the
smaller trade and banking areas outlined on the map.
These trade and banking areas represent groups of coun­
ties with generally homogeneous characteristics.

F e d e r a l R e s e r v e D i s t r ic t

We do not have complete data for all the trade and
banking areas that would enable us to pinpoint the vari­
ations from the general picture shown for each state, yet
the data we do have tell us the variations are there.
Take, for example, the Pensacola area, where government
disbursements provided over 40 percent of total personal
income in 1954, compared with the average of about 21
percent for Florida. In the Orlando area, agriculture,
providing 12 percent of personal income, was about twice
as important as in the state. In the trade and banking
area of Chattanooga, Tennessee, agriculture provided only
3 percent of personal income in 1953, whereas in the
Nashville area, farming was three times that important.
Information on sources of total personal income for
Per Capita Retail Sales, 1954
By Trade and Banking Area
Sixth District

Diverse Sources of Income
For a better understanding of the structure of the econo­
my of the District, we look first at the sources of personal
income. The chart on the opposite page shows only very
broad categories, but it does give a hint of the diverse
sources of income in District states. In 1956, about 73 of
every 100 dollars in income received by individuals in Dis­
trict states came from private nonfarm sources. Another
20 dollars came from government disbursements, either in
the form of military pay from the Federal Government,
civilian pay from Federal, state, and local governments,
or funds dispensed to recipients of pensions, social insur­
ance payments, and the like. The remaining 7 dollars in
personal income came from farming. This last figure un­
doubtedly will surprise those who still think of the region
as being primarily agricultural.
The relative importance of these three broad sources of
personal income is remarkably similar in all Sixth District
states except Mississippi. There, farming is much more
important than elsewhere, accounting for nearly 16 per­
cent of total personal income in 1956. Balancing this,
private nonfarm income is less important, accounting for
only 63 percent of total income, compared with the Sixth
District average of 73 percent. The relative importance of
government disbursements in Mississippi is not much dif­
ferent than in other District states.



n n

6 0 0 -6 5 0

D o lla rs

£^651-700
E 3

7 0 1 -7 5 0

■ 1 7 5 1 -9 0 0
1 1 1 9 0 1 - 1 ,2 0 0
■

1 .2 0 1 -1 ,5 0 0

K e y to A r e a s :
1.
2.
3.
4.
5.
6.
7.
8.
9.

Anniston-Gadsden
Birmingham
Dothan
Mobile
Montgomery
Jacksonville
Miami
Orlando
Pensacola

10.
11.
12.
13.
14.
15.
16.
17.
18.

Tampa-St. Petersburg
Atlanta
Augusta
Columbus
Macon
S avannah
South G eorgia
A lexan dria-Lake C harles
Baton Rouge

19.
20.
21.
22.

M e rid ia n

23.
24.
25.
26.
27.

•4 •

m District states is limited, but detailed data are
ost
available for wages and salaries. Such payments, totaling
over 17.6 billion dollars in 1956, accounted for nearly twothirds of all income received in the six states in that year.
Looking at the many different sources of wages and
salaries, one is likely to be impressed by the diversity of
activities from which citizens in our part of the Southeast
earn their livelihood. The most important single source—
manufacturing—provided only 25 percent of all wages
and salaries paid in the six states combined. Here again,
however, we see a wide variation among District states,
w 35 percent of all wages and salaries coming from
ith
manufacturing in Tennessee and only 12 percent in
Florida. Even the state averages, of course, hide variations
among trade and banking areas, as we can judge from the
Tennessee figures for 1953, the latest available for local
areas within the state: Manufacturing industries provided
about 35 percent of all wages and salaries paid in the
entire state but nearly 50 percent in the Tri-Cities area—
Johnson City, Kingsport, and Bristol.
The importance of all government disbursements in
total income has already been noted in District states,
so it is not surprising to see that government payrolls
are an important part of total wages and salaries. Over 20
percent of all wages and salary payments comes from
Federal, state, and local governments. Close behind
government payrolls in relative importance are the wages
and salaries paid by the trade industry, which provided
nearly 19 percent of all wages and salaries in 1956.

Varied Manufacturing Activities
Within the manufacturing sector, we see from employment
ngures for 1957 that a wide variety of activities provides
jobs to individuals in Sixth District states. The textile in­
dustry is important, of course, but it far from dominates
manufacturing, providing only about 14 percent of the
area s factory employment. Moreover, the District’s textile
industry is concentrated in Georgia, where over 50 per­
cent of the area’s textile workers are located. Naturally,
his means its relative importance is much greater in
rgia; nearly one-third of all factory jobs in the state
were provided by the textile industry in 1957. Figures
collected in the Census of 1950 show that the industry is
ro°re concentrated in some parts of Georgia than in others,
ontrast, for example, the Columbus area, where the texie industry provided nearly three out of every four
actory jobs, with the Savannah area, where it provided
ess than one percent of such employment.
In other trade and banking areas, other types of manuscturing activities are predominant. Again, to cite examPes using the Census figures for 1950, the latest available
or these areas, we see that the food industry provided over
a« the factory jobs in the Lafayette-Iberia area of Louisia^a, and the furniture industry provided over 60 percent
0 the factory jobs in the Natchez area of Mississippi.

M ixed Agricultural Activites
The person interested in Sixth District agriculture is
ortunate in that detailed data on sources of cash farm
income are available for local areas as well as individual
iqcC Using *he latest information available, that for
S'
’ he can see how varied are agricultural pursuits in



Sources of Personal Income, 1956
Sixth District States

Ala.

Fla

Go.

La

Miss.

Tenn.

Six States

the Sixth District. The person who has thought of the
area’s agriculture as concentrating on crops will be sur­
prised to learn that about 38 percent of cash farm income
in 1954 came from livestock and poultry products, whereas
the remainder came from the sale of crops. In the Atlanta
trade and banking area, receipts from livestock and poultry
production accounted for nearly 75 percent of cash farm
income, most of which came from poultry.
We see specialization of crops in some trade and
banking areas of the Sixth Federal Reserve District. In
1954, oranges yielded 52 percent of farm income in the
Orlando area; cotton yielded about that much of total
farm cash receipts in the Jackson area. Peanuts are im­
portant income producers in the Dothan area.

Market Potentials Differ and
Population Growth Uneven
One obtains an indication of variations in potential markets
for consumer goods and services from the figures on per
capita retail sales. As the map shows, per capita sales
vary widely from place to place within the Sixth District.
In 1954, the latest year for which such information is avail­
able for trade and banking areas, per capita retail sales
ranged from nearly 1,500 dollars to less than 650 dollars.
Even within states the range was rather wide.
Anyone who has followed developments in this part of
the South undoubtedly has heard much of expanding
markets resulting from rapid population growth. It is true
that population has grown rapidly in Sixth District states—
an estimated 44 percent from 1930 to 1957. From 1930
to 1955, the latest year for which data are available for
trade and banking areas, population of the District states
grew 37 percent. Yet the pattern of growth within the
District is far from uniform. The Miami area shows the
fastest growth, increasing its population an estimated 339
percent in the 25-year period. The other four Florida trade
and banking areas shown on the map, though expanding
less rapidly than Miami, also showed increases much
greater than the average for the Sixth District states. Popu­
lation growth in other areas, such as those surrounding
Mobile and Atlanta, approximated the average, but
changed relatively little in areas surrounding Macon,
Montgomery, and Natchez. To the other extreme, popu­
lation actually declined in the Dothan and the HattiesburgLaurel-Meridian areas.
P h il ip M. W e b st e r
•5 •

Bank Announcements
On June 26, the Beach State Bank, Panama City Beach,
Florida, a newly organized, nonmember bank, opened
for business and began to remit at par for checks drawn
on it when received from the Federal Reserve Bank.
Officers of the bank are C. C. Moore, Chairman of the
Board; T. H. Gainer, President; Sam B. Hearn, Vice
President; and Dan H. McLeroy, Cashier. Capital totals
$250,000 and surplus and undivided profits, $62,500.
The Bank of Louisiana in New Orleans, Louisiana, a
newly organized, nonmember bank, opened for business
July 1 and began to remit at par. Officers are James F.
Quaid, President; Robert A. Avenel, Vice President;
and Albert J. Hynes, Cashier. Capital totals $715,000
and surplus and undivided profits, $286,000.
On July 1, the Hernando State Bank, Brooksville,
Florida, began to remit at par. The bank’s officers are
A. A. McKethan, President; J. M. Mason, Executive
Vice President; S. M. Loftin, Vice President and Cash­
ier; E. E. Wever, Jr., Assistant Vice President; and
Henrietta M. Mason, Assistant Cashier. Its capital totals
$225,000 and surplus and undivided profits, $230,000.
The Alexander City Bank, Alexander City, Alabama,
has announced that on July 1 it would begin to remit at
par. Officers are L. M. Willis, President; J. B. Ewing,
Department Store Sales and Inventories*
__________________Percent Change
Sales
May 1958 from
5 Months
April
May1958 from
1958
1957
1957

Place

+9
A L A B A M A ..............
Birmingham . . . .
+9
M o b ile .................
-j-9
Montgomery . . . .
+15
F L O R ID A .................
+1
Daytona Beach . . . — 12
Jacksonville . . . .
+22
Miami Area . . . .
— 4
M ia m i.............. — 4
Orlando
.............. + 1 0
St. Ptrsbg-TampaArea.
+4
St. Petersburg
. .
—8
T a m p a .............. +1 4
G EO R G IA .................
+6
A tla n ta **..............
+3
A u g u s t a .............. +1 8
Colum bus..............
+9
M a c o n ................. +1 0
Rome**
..............
+8
Savannah.............. +1 3
L O U IS IA N A .............. +1 0
Baton Rouge . . . .
+21
New Orleans . . . .
+9
M ISSISSIP P I
. . . .
+9
Jackson
..............
+6
Meridian** . . . .
+2
TENNESSEE
. . . .
+1 0
Bristol-KingsportJohnson City** . . + 1 4
Bristol(Tenn.&Va.)** + 1 6
Chattanooga . . . .
+14
K n o x ville .............. +10
DISTRICT
+7

. . . . .

—2
— 4
+o
—0
+1
+4
— 4
—3
—6
+1
+9

H 4
—4
—2

—6

Inventories
May 31,1958 from
April 30,
May 31
1958
1957

__8
+17

+22
—3
— 5

—1

+12
+7
— 20
— 2

—4
—6
—4
—0

+1
+10

—4

Z fi
_3
”

_ i
+0
__ 5
+o
__4
__ 3

_ l4
_2

_!_2
+3

_14

—1
—1
—8
+3
—1

_J,

__3

+4

__a

2

—0

_5

_t

— 21

4
_5

-ik

3
5
_3

— 4

5

__a

—k

_21
__5

+3

_ i

-3

-6

— 9

13
_5

_4

_o

L

__o

3

_15

+1
+0
_5
-2

0
_q

2

JJ,

_5

•Reporting stores account for over 90 percent of total District department store sales.
••In order to permit publication of figures for this city, a special sample has been
constructed that is not confined exclusively to department stores. Figures for nondepartment stores, however, are not used in computing the District percent changes'




Executive Vice President; C. C. Richardson, Cashier;
and John T. Fuller, Assistant Cashier. Capital stock oj
the bank amounts to $110,000 and surplus and un­
divided profits to $316,590.
A newly organized, nonmember bank opening for
business on July 7 as a par-remitting bank was The
Citizens Bank of Perry, Perry, Florida. Officers are F.
H. Bolton, President; R. H. Roach, Jr., Executive Vice
President and Cashier; and A. C. Lowe, Assistant
Cashier. It has capital of $170,000 and surplus and
undivided profits of $80,750.
Debits to Individual Demand Deposit Accounts
(In Thousands of Dollars)
Percent Change
May 1958 from 1958
April
May from
1958
1957 1957

April
May
May
1957
1958
1958
ALABAMA
32,324
36,240
Anniston . .
35,855
718,028
711,070
698,608
Birmingham .
24,042
24,870
Dothan . .
24,155
27,521
32,583
Gadsden . .
32,791
270,528
243,332
246,037
Mobile . .
142,114
Montgomery .
144,793
131,240
21,204
21,476
Selma* . .
20,083
41,634
Tuscaloosa* .
46,183
43,009
FLORIDA
51,436
Daytona Beach*
52,696
57,103
174,001
Fort Lauderdale*
173,637
200,447
Gainesville* .
32,463
33,536
33,420
648,738
Jacksonville .
641,240
737,389
Key West* .
15,202
15,045
16,245
Lakeland*
58,862
61,648
66,333
Miami . . .
718,441
691,607
797,389
Greater Miami*
1,113,262
1,059,591
1,209,111
Orlando . .
161,944
166,123
183,562
Pensacola
81,621
78,436
80,409
St. Petersburg
145,324
154,662
165,369
Tampa . .
317,598
327,750
330,643
West Palm Beach
100,732
104,794
120,026
GEORGIA
Albany . .
56,472
60,076
52,908
34,547
Athens* . .
34,844
32,887
1,629,389
Atlanta . .
1,599,704
1,632,422
87,364
Augusta . .
89,266
88,059
Brunswick
19,568
20,990
19,614
Columbus . .
101,273
90,114
93,422
Elberton . .
8,558
10,435
7,672
Gainesville* .
44,881
53,391
49,382
Griffin* . .
16,177
15,524
16,965
21,214
LaGrange*
18,408
18,787
Macon . . .
102,268
104,858
100,765
Marietta*
26,849
26,797
25,264
Newnan . .
15,291
15,810
15,446
Rome* . .
36,541
40,691
36,593
Savannah .
183,852
177,200
171,311
Valdosta . .
23,186
21,271
23,031
LOUISIANA
Alexandria* .
66,297
66,616
63,165
Baton Rouge .
199,571
201,011
183,323
Lafayette* .
51,804
60,148
50,843
Lake Charles
79,711
83,5%
80,628
New Orleans
1,236,988
1,363,405
1,243,487
M ISSISSIP P I
Biloxi-Gulfport*
40,141
39,141
37,175
Hattiesburg . .
31,397
30,668
30,519
Jackson . . .
207,204
252,212
207,076
Laurel* . . .
20,782
22,882
22,783
Meridian . . .
36,580
43,163
33,918
Natchez* . . .
20,189
19,581
18,739
Vicksburg
. .
18,640
16,811
20,050
TENNESSEE
Bristol* . . ,
38,146
39,426
38,803
Chattanooga . .
269,543
274,685
262,015
Johnson City* ,
37,765
38,052
38,786
Kingsport* . .
66,920
68,055
64,152
Knoxville . . .
201,382
213,422
198,198
Nashville . . .
589,189
598,358
602,197
SIXTH DISTRICT
32 Cities . . .
8,364,389
8,558,242
8,512,287
UNITED STATES
344 Cities . . . 997,602,000 204,100,000 197,181,000

+11 — -3
1
+2 -1 -0
+° — -5
3
+19
+1
—1

-1 0

+7
+7

+1 +1
+11 +8

+10

8 +2 +8
Ifl +1

—
— 13

-1 3

—7

—
7

+3

—1 +10

—
1

— 13
— 12

— +1
5
— +3
10
—2
-0
—12

—1
—13
+14

+b
+1
+7
+4
+
s
—2

n
+4
+6
+2
-0
+3
+8
+5

+10

+7

tf +
S
ii

+? lo
+»
-4
+8

+Z
la
+22
+19
+5
—
13
+3

__o

+*
+«
+0

+5

+3 +*
—10 - i

—
1

+0 +g
+1

+12
+4
—1

+l
+27

+4

j.1 1

•Not included in Sixth District totals.

•

-11

+2 +2

6

•

+1
+«

7

—7

Zfl

-3

Sixth District Indexes
Seasonally Adjusted (1947-49 = 100)
1957

SIXTH DISTRICT

1958

APRIL

MAY

JUNE

JULY

AUG.

N
onfarmEmployment . . .
.134
M
anufacturing Employment . . 120
Apparel..................................168
Chemicals............................. 134
Fabricated Metals . . . .172
Food...................................... 117
Lbr, W
ood Prod., Fur. & Fix. . 81
Paper & Allied Products . .163
Primary M e t a ls ....................107
Textiles.................................. 91
Transportation Equipment . .209
M
anufacturing Payrolls
. . .191
Co n Consumption** . . . .
tto
84
Electric Power Production** . . 304r
Petrol. Prod, in Coastal
Louisiana & Mississippi**
. 195
Construction Contracts* . . .313
Residential............................. 268
All o t h e r ............................. 350
Farm Cash Receipts....................129
Crops . . .
....................120
149
Livestock........................
D Store Sales*/* * . . . .158
ept.
Atlanta................................. 141
Baton R o u g e ........................ 167
Birmingham.........................118
Chattanooga........................ 140
Jackson.................................. 98
Jacksonville........................ 119
Knoxville............................. 146
M acon.................................. 141
M ia m i.................................. 231
N O rle an s.........................140
ew
Tampa-St. Ptrsbg..................... 182
Tam pa..................................148
D Store Stocks*.................... 206
ept.
Furniture Store Sales*/ • •
. . 113
M ber Bank Deposits* . . . 160
em
M ber Bank Loans* . . . 259
em
B Debits*............................. 223
ank
Turnover of Demand Deposits* .138
In Leading C itie s....................156
Outside Leading Cities . . .102

134
120
170
136
175
116
81
162
108
91
218
194
88
303

135
121
171
136
179
117
80
163
107
90
231
198
89
310

135
121
164
136
185
118
80
156
108
89
235
201
87
298

135
120
164
133
180
113
80
161
107
89
243
200
89
297

134
119
165
133
177
113
81
159
104
89
230
197
90
299

134
120
166
131
178
113
8078
161
105100
8888
216
194
8685
303

195
311
291
327
132
135
146
168r
163
183
134
141
112
127
154
149
252
142
185
157
200r
108r
160
260
224
144
159
109

170
320
325
315
142
150
145
172r
158
186
131
146
107
128
148
151
251
148
187
165
198
111
159
261
223
140
160
103

172
330
319
340
148
149
158
171r
159
177
128
149
119
127
151
147
267
148
183
159
204
114
162
263
231
152
168
111

160
330
341
321
109
74
152
175r
167
194
138
151
121
135
158
166
274
148
185
167
203
110
160
268
225
147
166
106

164
315
324
308
83
62
147
168r
154
181
132
147
111
132
156
141
267
151
189
165
201
105
161
268
231
144
158
110

167
283
334
241
93
76
157
154r
149
187
128
141
102
118
139
136
244
145
177
147
208
103
159
265
221
138
145
101

161
261
288
239
102
82
151
162r
154
205
123
147
115
130
144
143
231
140
195
180
206
108
159
263
216
136
144
99

123
113
181
117
140
215

123
114
185
113
140
219

123
114
187
131
140
219

123
113
193
125
139
223

122
109
187
100
139
226

123
112
188
111
136
223

122
112
185
120
136
218

121
107
173
117
139
222

FLORIDA
Nonfarm Employment . .
171
Manufacturing Employment ______
172
Manufacturing Payrolls . . . 264
Furniture Store Sales .
124
M ber Bank Deposits . . . 201
em
M
ember Bank Loiuis . . . . 401

175
174
273
113r
201
404

177
177
280
118
201
405

179
177
286
124
206
410

179
180
290
114
207
414

180
179
293
111
211
415

178
180
291
106
212
416

176
182
290
111
213
417

GEORGIA
Nonfarm Employment . ,
Manufacturing Employment
Manufacturing Payrolls . .
Furniture Store Sales .
M
ember Bank Deposits .
M
ember Bank Loiuis . .

131
. 122
. 192
107
144
214

130
122
194
106r
142
214

129
123
1%
105
142
216

130
122
198
106
145
218

130
120
199
107
141
219

130
118
192
107
141
217

130
117
187
103
138
212

. 131
.174
.137
. 155
.259

130
101
174
128r
155
262

131
103
173
139
155
261

130
101
173
139
156
267

. 125
. 125
.207
.9 4
.152
. 278

124
122
207
90r
155
280

123
124
211
92
155
283

. 120
. 119
189
91
. 144
.226

119
118
188
87
144
229

120

ALABAMA
Nonfarm Employment . .
Manufacturing Employment
Manufacturing Payrolls . .
Furniture Store Sales . .
M ber Bank Deposits . .
em
M ber Bank Loiuis . . .
em

122
111
177
108
143
214

SEPT.

OCT.

NOV
134
120
166
131
176
114
78
159
99
88
216
1%
79
299

DEC

| JAN.

133
118
164
131
172
115
77
159
95
87
225
194
83
295

134
117
167
129
173
117

175
259
294
229
123
108
173
169r
156
201
126
145
117
133
156
149
255
147
207
201
207
113
162
269
235
149
160
113

FEB.

MAR.

317

133
116
167
129
169
117
76
156
90
86
197
182
78
325

132
113
165
127
166
114
74
155
90
84
191
183
78
311

169
264
272
257
124
103
160
157
151
181
121
142
109
127
146
139
234
132
192
185
202
107
161
270
227
146
157
111

170
298
293
303
129
111
160
147
147
171
111
128
99
116
128
137
227
135
174
171
199
93
161
269
226
144
155
112

168
309
279
333
115
85
160
158
157
175164r
132
141
97
122
139
148
233
125
186
180
193
95
166
272

122
105
171
123
139
224

175
179
292
126
213
423

130
119
198
111
137
208

APR.

130
112
162
127
163
106
74
153
89
81
172
183
75
n.a.
169
n.a.
n.a.
n.a.
159e
n.a.
n.a.
164p
154

139
150
11C

166
318
301
332
156r
143
182
155
153
172
117
136
99
108
141
151
242
135
181
168
190
103
170
275
229
141
160
106

120
103
162
99
139
221

120
102
165
104
140
223

119
103
162
109
150
226

119
104
166
117
147
229

175
174
281
100
210
427

174
173
276
99
206
428

173
170
267
95
213
436

174
169
274
109
218
448

175
174
283
107p
221
444

129
118
191
110
142
212

129
116
184
107
141
210

128
115
178
86
141
208

127
114
178
91
147
212

127
112
173
92
150
214

126
110
168
104p
150
214

130
97
173
148
153
274

129
98
172
135
151
268

129
98
170
116
154
269

128

169
137
156
266

127
96
171
123
155
267

126
95
168

125
123

124
123
208
77
164
305

124
123
228
79
167
308

123
125

124
124
223

90
187
309

189
333

115

115

115

114

175
72
148
233

177
75
155
236

176
84
156
242

174
84
158
246

158
211
187

220

LOUISIANA

Nonfarm Employment . .
Manufacturing Employment
Manufacturing Payrolls . .
■
-urniture Store Sales* . .
Member Bank Deposits*
.
Member Bank Loans* . .

.102

131

130

130

100

100

100

174
147
155
272

173
133
154
271

172
133
153
268

130
99
171
135
151
265

124
126
219
83
157
286

123
124
217
75
158
288

125
124
213
85
154

124
123
208
80
147
293

206
95
149
294

119
117
189
85
148
236

119
117
190

120

MISSISSIPPI

Nonfarm Employment . .
Manufacturing Employment
Manufacturing Payrolls . .
furniture Store Sales*
Member Bank Deposits*
.
Member Bank Loans* . .

282

TENNESSEE

Nonfarm Employment . .
Manufacturing Employment
Manufacturing Payrolls . . .
furniture Store Sales* . . .
Member Bank Deposits* .
Member Bank Loans* . .

118
187
86
144
233

82

148
236

116
186
82
147
236

119
115
185
82
146
230

124

122

120
115
183
80
147
233

MAY

131
113
162
130
168
112
74
158
89
85
184
182
74
306

124

121
212
107
154
296

118
114
181
87
148
236

212
88
163
302

117
113
175
85
146
239

110

%

110

222

111

130
145
107
122
147
159
244
137
203
192
190
104p
173
276
219
141
155
112

121

158
270

88

110

Revised.
Estimated.
•For Sixth District area only. Other totals for entire six states.
n.a. Not Available.
p Preliminary.
••Daily average basis.
Sources: Nonfarm and mfg. emp. and payrolls, state depts. of labor; cotton consumption, U. S. Bureau Census; constniction contracts, F._W. Dodge Corp.; petrol, prod., U. S. Bureau
of Mines; elec. power prod.. Fed. Power Comm. Other indexes based on data collected by this Bank. All indexes calculated by this Bank.




•7 •

SIXTH DISTRICT BUSINESS HIGHLIGHTS
...........I
I IS4T-4S* lOO' *

Seasonally Adjusted

^ N o n f a r m e m p lo y m e n t continued to drift downward in May I
as the result of drops in both the manufacturing and nonmanufac- I
turing sectors. Manufacturing payrolls rose, however, as the average I
work week increased. In addition, farm income improved further, I
reflecting higher livestock prices. Although total spending, as meas- I
ured by seasonally adjusted bank debits, declined, spending at I
department stores continued to advance. Loans at all commercial I

Mfg. Employment

banks expanded further and deposits increased sharply.

Cotton Consumption

Farm C o sh Receipts




^159

The decline in seasonally adjusted nonfarm employment during May ceo-1
tered in Georgia, Louisiana, and Tennessee. Employment in both mcmufoc- j
turing and nonmanufacturing was lower than in April. Most major types of I
manufacturing employment declined, with particularly sharp decreases ia I
food and transportation equipment. Insured unemployment declined in May, 1
but was still sharply above a year earlier. Factory payrolls rose in May, 1
reflecting an increase in average weekly earnings.
Activity at cotton mills, as indicated by cotton consumption, improved
somewhat from April’s record low. Steel operations in June declined slightly, I
with mills still operating well below capacity.
Cash receipts from farm marketings/ seasonally adjusted, rose to a record 1
in May largely because of higher livestock prices. The volume of marketing* j
of livestock, however, was still below last year's primarily because of lower j
sales of beef cattle. Broiler marketings, on the other hand, were up sub- j
stantially from last May. Larger volumes of peaches, cantaloupes, water­
melons, and tomatoes are moving to the market but at lower prices than last
year. A sufficient amount of soil moisture favors rapid growth and developing*
of field crops.
Total spending, as measured by seasonally adjusted bank debits, declined j
slightly in May. Department store sales in June, however, approached last
summer’s peak, and inventories leveled off after declining four straight
months. Furniture store sales moved up to last winter’s level, but st#
remained below year-ago volume. Household appliance sales dropped slight*
ly during May after picking up earlier in the spring.
Savings in the form of time deposits and savings and loan shares c o n tin u e
to show substantial gains, although sales of ordinary life insurance d ec lin e d
slightly. Consumer credit outstanding at commercial banks during May ro*
seasonally, led by a sharp boost in automobile paper purchased. Consumer
prices edged upward once again, but at a slower rate than during p re v io u s
months.
Investments at all commercial banks declined sharply in May as banks re­
duced their holding of Government securities; loans continued to rise and again
centered at banks outside leading cities. All states registered loan incrc®**
greater than seasonal except Florida. Member bank deposits, seasonally *»*
justed, rose sharply, with all states except Alabama and Georgia sharing in
rise. Time deposits continued to expand but at a slower rate than in other
recent months. In June, loans outstanding at banks in leading cities
creased at about the same rate as a year ago. Business loans, however, showeO
a marked rise over last year, with the borrowings of construction firms up shar£
ly. Member bank borrowings from the Federal Reserve bank of Atlanta
clined slightly in June.