The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
IN THIS ISSUE: MONTHLY REVIEW F E D E R A L R E S E R V E B A N K • B ook k eep in g for F a n n ers A N ew Bank S e rv ice • C oonty Job Growth and U nem ploym ent P a tte r n s • D istrict B u sin e s s C onditions O F JU LY A T L A N T A 1968 B A o o k k e e p i n g N e w B a n k f o r F a r m S e r v i c e H is to r ic a lly , farm ers h a v e b e e n g o o d te c h n ic ia n s in o p e r a tin g m o st p h a se s o f th e ir b u sin e sse s, b u t th e y h a v e b e e n v e r y poor b o o k k eep ers. In fa ct, k e e p in g reco rd s w a s o fte n a ss ig n e d su ch lo w p r io rity th a t b efo re th e p a ssa g e o f th e In te rn a l R e v e n u e A c t a farm er w ith a n y ty p e o f a c c o u n t in g s y s te m w a s a ra rity . E v e n s in c e 1913 fa rm e r s’ a c c o u n tin g p ro ced u res o fte n h a v e sa tisfie d o n ly th e m in im u m req u ire m en ts for in c o m e ta x es. T h e y u s u a lly in c lu d e d a c ig a rb o x fu ll o f re c e ip ts or sc a tte r e d sh e e ts o f p ap er a n d /o r e n v e lo p e s o n w h ich a few p e r tin e n t n o te s w ere scrib b led . C er ta in ly , th e s e p ro ced u res w ere n e v e r a sig n o f so u n d fin a n cia l m a n a g em e n t; b u t th e y c o u ld be to le r a te d m ore in b y g o n e d a y s w h e n farm u n its w ere sm a ll, th e o p era to r a n d fa m ily la b o r rep re se n te d th e m ajor p r o d u ctio n in p u t, a n d c a p ita l in v e s tm e n t in m a c h in e r y a n d la n d w a s sm a ll. T o d a y , h o w ev er, w h e n c o m m er c ia l fa rm s rep re s e n t m ajor b u sin e sse s , a c c u r a te a n d d e ta ile d r e c o rd s h a v e b e c o m e a p r e r e q u isite to su c c e ssfu l farm m a n a g em en t. In r e c e n t y e a r s n u m ero u s s o lu tio n s for im p ro v in g record s y s te m s h a v e b e e n p ro p o sed . T h e c o o p e r a tiv e e x te n s io n se r v ic e in m a n y s ta te s h a s d e v e lo p e d a n d im p le m e n te d v a r io u s p rogram s. A lso , farm su p p lie r s, farm o r g a n iz a tio n s, so m e b a n k s, farm er co-op s, a n d o th e r o rg a n iz a tio n s h a v e d e sig n e d reco rd -k eep in g p ro g ra m s for fa rm ers. H o w ev er, c o n tin u e d a d v a n c e s in e le c tr o n ic d a ta p ro cessin g h a v e c a u se d m o re a n d m o re b a n k ers to b eco m e aw are o f th e o p p o r tu n ity to e x te n d a v a lu a b le a n d p ro fita b le re c o rd -k eep in g se r v ic e to b o th th eir farm a n d n o n fa rm c u sto m ers. I n c r e a s e d In te r e s t T o d a y ’s cu rren t h ig h in te r e st in c o m p u te r iz e d record s y s te m s w a s sp a rk ed b y tw o d e v e lo p m e n ts. Monthly Review, Vol. LIII, No. 7. Free subscription and additional copies available upon request to the Research Department, Federal Reserve Bank of At lanta, Atlanta, Georgia 30303. 90 for FRASER Digitized e r s : F ir st, m o re a n d m o re b a n k ers a re b e c o m in g fa m ilia r w ith d a ta p r o c e ss in g e q u ip m e n t a n d it s a p p lic a tio n to b a n k in g o p e r a tio n s a n d se rv ice s. E v e n th o u g h m a n y b a n k ers d o n o t o w n or le a s e E D P e q u ip m e n t, th e y n o w h a v e a c c e ss to c o m p u te rs th ro u g h lo c a l se r v ic e b u r e a u s or co rre sp o n d e n t b a n k s. In a d d itio n , m o re b a n k ers a re g e ttin g e q u ip m e n t to c o d e c h e c k s a n d d e p o sit s lip s w ith m a g n e tic in k c h a ra cter r e c o g n itio n (M I C R ) s y m b o ls to a id in a c c o u n tin g p ro c e d u res. T h is e x p e r ie n c e w ith E D P m e th o d s h a s m a d e b a n k ers m o r e a w a re o f th e p o te n tia l for n ew a n d d iffe re n t c o m p u te r a p p lic a tio n s. S e c o n d , n u m e r o u s ty p e s o f c o m p u te r iz e d rec o r d -k ee p in g s y s te m s h a v e b e e n d e v e lo p e d a fter a s u c c e s sfu l la u n c h in g in 1 9 6 5 o f a p rogram d e sig n e d b y a s m a ll ru ral b a n k in Io w a . T h is b a n k r ec o g n iz e d th a t b a n k e r s a re n o w in a b e tter p o sitio n to offer a r e c o r d -k ee p in g s y s te m th a n m o s t o th e r o r g a n iz a tio n s. T h is a d v a n ta g e lie s in th e b a n k ’s p a r tic ip a tio n in v ir tu a lly a ll o f a fa rm er’s fin a n c ia l tra n sa c tio n s. B y r e d e sig n in g th e ch e c k is su e d to farm ers, th e p o r tio n o f e a c h c h e c k a l lo c a te d to e a c h p u r p o se is reco rd ed a fter it h a s c le a r e d a t th e b an k . A $ 1 0 0 c h e c k w r itte n to a lo c a l farm s u p p ly sto r e m ig h t sh o w th a t $ 2 5 w a s u se d to p u rc h a se p o u ltr y fe ed , $ 2 0 for m a c h in e r y rep a irs, a n d $ 5 5 for so m e b a b y ch ick s. B y r e co rd in g th e s e d a ta for e a c h c h e c k w ritten , th e b a n k c o u ld p e r io d ic a lly g iv e it s farm c u s to m ers a v a lu a b le rep o rt o f th e ir e x p e n d itu r e s. In lik e m a n n er, d e p o s it s lip s w ere r e d e sig n e d to sh o w th e r e v e n u e g e n e r a te d fro m e a c h farm e n te r p r ise . B y c o m b in in g e x p e n d itu r e a n d r e v e n u e d a ta in o n e rep o rt, th e b a n k er c a n g en e r a te a m o n th ly c a sh flo w r ep o rt th a t is a v a lu a b le farm m a n a g e m e n t to o l. E x te n t o f U s e P rio r to 196 5 o n ly tw o b a n k s o ffered a farm r e co rd -k eep in g sy s te m . H o w e v e r , b y 1967 over 2 0 b a n k -o r ie n te d a g r ic u ltu r a l E D P farm reco rd k e e p in g p rog ra m s w ere in o p e r a tio n , a cc o r d in g M O N T H L Y R E V IE W D e p o s it s l ip s , c h e c k s , a n d p e tty c a s h v o u c h e r s a r e th e p r im a r y in p u t r e c o r d s . to a n A m erica n B a n k ers A sso c ia tio n su r v e y . P r e s e n tly , 15 o f th e 2 0 p ro g ra m s a re n o w b e in g le a s e d or fra n ch ised . A b o u t 4 5 0 b a n k s a re e x te n d in g so m e ty p e o f reco rd -k eep in g s y s te m ser v in g o v er 4 ,5 0 0 farm ers. M o s t o f th e m u lti-b a n k p la n s are le a s e d or fr a n ch ise d o n a lo c a l or re g io n a l b a sis, b u t so m e a re o ffered n a tio n a lly . M id w e ste r n b an k s a re th e m o st a c tiv e in d e v e lo p in g c o m p u terized reco r d -k eep in g p rogram s. T h e 2 0 b a sic p rogram s rev ie w e d in th e A B A su r v e y are lo c a te d in 11 d iffe r e n t sta te s. E ig h t p ro gram s o r ig in a te d in Io w a a n d I llin o is , w ith th e b a la n c e sta r tin g in o th e r C o m B e lt or P la in s ta te s. N o n e o f th e progra m s o r ig in a te d in th e S o u th e a s t, an d th e lic e n sin g or fr a n c h isin g o f e x is tin g p rogram s b y so u th ern b a n k s is a lso v e ry lim ite d . S e r v ic in g fe e s ch a rg ed to farm ers v a ry from a fla t m o n th ly rate to a c h a r g e for e a ch ite m p r o c e sse d to a c o m b in a tio n o f b oth . A lso , so m e b a n k s h a v e a n in itia l se t-u p fee, w h ich in m a n y p ro gram s is a d ju ste d a cc o rd in g to th e n u m b er a n d ty p e rep o rts th e farm er req u ests. R a te s u s u a lly fa ll w ith in a ran ge from $ 7 .5 0 to $ 1 5 m o n th ly . If a w id e v a r ie ty o f rep o rts is g iv en , th e c h a rg e m a y e x c e e d th e s e le v e ls. A b a n k ’s c o st to fra n JU LY 1 9 68 c h is e a r e co rd -k eep in g p rogram v a rie s a n d is b a sed o n b an k d e p o sits, se r v ic e s p ro v id ed , an d th e ty p e a n d n u m b er o f rep o rts a v a ila b le . P rogram M o s t o f th e o v er 2 0 b a sic farm reco rd -k eep in g p rogram s n o w o ffered b y b a n k s u se th e c h eck a n d d e p o sit s lip a s m ajor in p u t item s. T h e y u s u a lly h a v e a th r e e -d ig it c o d e to a llo w d e ta ile d id e n tific a tio n o f c o sts an d rev e n u e s a ss o c ia te d w ith ea ch en ter p rise , a s w e ll a s fa m ily liv in g e x p e n se s a n d n o n fa rm in co m e. M o s t s y s te m s a llo w th e farm er to c o m p le te a s p e c ia l in p u t form so th a t cu rren cy tr a n sa ctio n s w ill a p p ea r o n h is sta te m e n ts. T h e in p u t d a ta , o f co u rse, d e te r m in e th e fle x i b ility o f rep orts or o u tp u t r e c e iv e d b y farm ers. B y u sin g ch eck s, d e p o sit slip s, a n d c a sh tr a n s a c tio n s, th e rep o rts a re u s u a lly lim ite d to v a rio u s c a sh e x p e n se a n d r e v e n u e sta te m e n ts. M o s t p ro g ram s p ro v id e th e cu sto m er w ith m o n th ly su m m a ry ta b le s sh o w in g e x p e n se s a n d r e c e ip ts b y c a te g o r y for th e cu rren t m o n th , p lu s y e a r -to -d a te to ta ls. In a d d itio n , th e farm er u s u a lly r e c eiv es a m o n th ly tr a n sa c tio n s jo u rn a l lis tin g e v e r y c h e c k 91 a n d d e p o s it b y c a te g o r y th a t c le a r e d h is a cc o u n t. T h is rep o rt p ro v id es a n o p p o r tu n ity to c h e c k for c o d in g errors. g ram s p rep a re d e p r e c ia tio n s c h e d u le s for in c o m e ta x p u rp o ses. S o m e reco rd s y s te m s c o m p u te a n n u a l b a la n c e sh e e ts, re p o rts o n fu n d s b orrow ed a n d rep a id , c a p ita l e x p e n d itu r e s, in v e n to r y a d ju stm e n ts, su m m a r y e n te r p r ise re p o r ts for p a r tic u la r fie ld s a n d /o r p e n s o f liv e sto c k , in v e s tm e n t c r e d it rep orts, a n d fa rm b u sin e ss a n a ly s e s w ith in d iv id u a l grou p c o m p a r iso n b y en te r p r ise . S o m e o f th e s e p ro g ra m s w ere d e v e lo p e d b y n o n b a n k in g firm s b u t a re n o w b e in g le a s e d or fr a n c h ise d b y co m m e r cia l b a n k s. M a n y o f th e record s y s te m s offered b y b a n k s h a v e o th er rep orts a v a ila b le to farm c u sto m ers. T h e y m a y in c lu d e a p relim in a r y y e a r -e n d rep ort is su e d in N o v e m b e r or D e c e m b e r for ta x p la n n in g p u rp o ses. O th er p rog ra m s h a v e c o d in g s y s te m s to c o in c id e w ith S c h e d u le F o f th e F e d e r a l in c o m e ta x form s. C o st a n d r e c e ip t d a ta for e a ch in d iv id u a l en te r p r ise o n a farm ca n a ls o b e d e v elo p ed . A n d if c o d in g s y s te m s a re d e ta ile d su f fic ie n tly , c o st for a p a rticu la r fie ld w ith in a g iv en farm or sep a ra te record s for d iffe re n t farm s o p e r a te d b y th e sa m e farm er ca n b e g en era ted . A lth o u g h n o n e o f th e a p p r o x im a te ly 2 0 d if fe r en t farm record p rog ra m s n o w offered b y b a n k s h a s a ll th e o p tio n s lis te d a b o v e, m o s t h a v e tw o or m ore. M a n y progra m s offer o th er o p tio n s a t extra c o sts to th e farm cu sto m er. W ith th e in c lu s io n o f su p p le m e n ta l in fo r m a tio n , so m e p ro I m p lic a t io n s O p p o r tu n itie s for th e b a n k c o n sid e r in g su c h a r ec o rd -k eep in g p rogram for it s fa rm c u sto m er s se e m n u m ero u s. F o r th e b a n k it r e p r e se n ts a n o th e r se r v ic e th a t c a n b e e x te n d e d to it s c u s to m ers w ith th e a d d e d b e n e fit o f profit. M o s t b a n k s e n te r in g o n e o f th e s e p ro g ra m s h a v e re p o rted so m e o p e r a tin g lo s s e s in th e first o n e or tw o y ea rs. H o w e v e r , a fte r th e p ro g ra m h a s b e e n This cash flow report shows monthly and year-to-date income and expenditures. ...A D S MR. NBC ROUTE CUSTOMER 122, SOUTHEAST, CODE BOX BY PERI0D NBC 5 ACCOUNT 66 123 456 7 1 U. S. A. r A a t fl r 1C v .Un D K ii lc oc im UIN INCOME \/ c a n 1r l L I EXPENSE INCOME xn r vATt r EXPENSE INCOME 105 COTTON LINT SALES 110 COTTON SEED SALES 115 SOYBEAN SALES 120 RICE 125 LIVESTOCK 130 M ISC . 135 INTEREST 140 RENT 145 1,1 3 2.00 SALES SALES SALES 1,124.68 23 .68 23.68 RECEIVED RECEIVED CUSTOM WORK 150 GOVERNMENT 155 OTHER 202 EXPENSES LABOR 100 .00 350.00 PAYMENTS 3 ,041.66 75.00 TOTAL 204 1,124.68 1 ,248 .36 5 ,747.02 696.64 206 SOCIAL SECURITY TAX FED. TAX W IT H H E LD 208 SEED 210 F E R T ILIZ E R 212 FUEL 214 EQUIPMENT AND OIL REPAIRS 27.84 3 ,636.41 134.40 36.23 181.15 2 ,643.11 2 , 6 4 3 . 11 876.41 1,328.82 742.80 3 ,260.01 119.30 1, 102.50 216 AERIAL 118.50 419 .0 0 218 CHEMICALS P0ISON 485.00 1,0 8 2 .9 0 126.50 326.00 220 APPLICATIONS 222 IRRIG A TIO N 224 DEFOLIANTS 226 HARVEST 228 TRUCK 230 LAND EXPENSE AND HAULING RENTS MACHINE HIRE 234 TENANTS FURNISH IN G 236 M ISC . 232 EXPENSE 100.00 100.00 68.32 176.40 238 VETERINERY 240 TELEPHONE 12.62 68.40 242 2 44 U T IL IT IE S 3 1 .40 106.30 OFFICE 246 DUES EXPENSE AND DONATIONS 248 INTEREST 250 ACCOUNTING 252 254 P. 256 PROPERTY P. R-E TAXES INSURANCE 258 INS SHOP 262 B U ILD IN G 264 DEPRECIATIO N 266 PERSONAL OTHER 92 for FRASER Digitized 66.00 100.00 TAX 260 268 25.00 100.00 32.40 AND INCOME EXPENSE WORKERS COMP EXPENSE 232.00 52.00 161.00 REPAIR EXPENSE TOTAL 300.00 1,5 0 0 .0 0 6 ,561.67 16 , 6 5 6 . 8 0 M O N T H L Y R E V IE W A m o re e x t e n s iv e c o d in g s y s t e m 48-650013 100 and s u p p le m e n t a l in fo r m a t io n w e re re q u ire d fo r t h is e n t e r p r is e rep o rt. DECEMBER 31,1967 JOHN Q. PU BLIC ROUTE 1 BOX 13 SOUTHEAST, U. S. A. DAIRY HERD 1 E N T ERPR ISE REPORT FOR 70 U N ITS ITEM D E SC R IP T IO N TOTAL * * * * * CASH EXPENSES * * * * * FEED BOUGHT CUSTOM WORK H IRED SUPPLY EXPENSE BREEDING FEE EXPENSE VET £ M E O IC IN E EXP. HAULING EXPENSE GEN. LIVESTO CK EXP. TOTAL OPERATING EXP. 4 ,9 9 3 .9 8 2 25.00 9 03 .4 2 294.01 2 64 .60 1 ,8 2 9 .3 6 9 93 .0 6 % LIV EST O C K PURCHASES TOTAL CASH EXPENSE 9 ,5 0 3 .4 3 i 1 0 ,4 0 3 .4 3 2 6 ,7 5 5 .7 4 TOTAL ORDINARY INCOME $ 2 6 ,7 5 5 .7 4 C A PIT A L G A IN -L IV S T C K t $ 2 ,8 6 9 .7 2 $ 2 9 ,6 2 5 .4 6 * * * NON-CASH EXPENSES * * * NON-CASH FEED % 1 3 ,3 3 5 .0 0 TOTAL NON-CASH EXPENSE $ 1 3 ,3 3 5 .0 0 * * * * NON-CASH INCOME * * * * NON-CASH LIVESTO CK TOTAL NON-CASH INCOME $ 9 00 .0 0 * * * * * CASH INCOME * * * * * M ILK SOLD TOTAL CASH INCOME PER UNIT $ 2 ,2 1 3 .7 5 $ 2 ,2 1 3 .7 5 e sta b lis h e d a n d o p era tin g p r o ced u res a re refin ed , a p rofit p o te n tia l e x is ts. N o t o n ly co u ld th e p rogram it s e lf b e p ro fit a b le, b u t n u m ero u s o th e r a d v a n ta g e s c o u ld a c c r u e to th e b ank. E x p e r ie n c e r e v ea ls th a t o p e r a to rs o f la rg e farm s are m o s t lik e ly a ttr a c te d to a fa rm reco rd -k eep in g p rogram a n d c o n se q u e n tly b o th d e p o sits a n d g ood lo a n d e m a n d for th e bank. In a d d itio n , m a n y o f th e p ro g ra m s c a n b e m o d i fie d to serv e sm a ll b u sin e sse s, p r o fe ssio n a l p e o p le , p e r so n a l a c c o u n ts, a n d sp e c ia l a c c o u n ts (lo c a l g o v ern m en t a n d c iv ic o r g a n iz a t io n s ). W ith th e s e ch a n g es, th e b an k er is in a p o s itio n to e x te n d th is n e w s e r v ic e to th e b u lk o f h is d e p o sito r s. A n d im p ro v ed reco rd s w ill p r o v id e th e b a n k er w ith m o re in fo r m a tio n for fin a n c ia l c o u n se lin g a n d e v a lu a tin g lo a n req u ests. U r b a n b a n k s m a y a ls o c o n sid e r e m p lo y in g E D P reco rd -k eep in g sy s te m s. E v e n th o u g h m a n y u rb an b a n k s h a v e few farm borrow ers, th e y m ig h t $ OPERATOR LANDLORD 71.34 3.21 12.90 4 .2 0 3 .78 26 .1 3 14.18 2 ,4 9 6 .9 9 112.50 4 51.71 14 7.00 132.30 9 14.68 4 9 6 .5 3 2 ,4 9 6 .9 9 112.50 45 1.71 147.01 132.30 91 4.68 49 6.53 135.76 4 ,7 5 1 .7 1 4 ,7 5 1 .7 2 * 12.85 45 0 .0 0 4 50 .00 148.62 5 ,2 0 1 .7 1 5 ,2 0 1 .7 2 382.22 1 3 ,3 7 7 .8 7 1 3 ,3 7 7 .8 7 382.22 1 3 ,3 7 7 .8 7 1 3 ,3 7 7 .8 7 * * 4 0 .9 9 1 ,4 3 4 .8 6 1 ,4 3 4 .8 6 423.21 1 4 ,8 1 2 .7 3 1 4 ,8 1 2 .7 3 190.50 6 ,6 6 7 .5 0 6 ,6 6 7 .5 0 190.50 6 ,6 6 7 .5 0 6 ,6 6 7 .5 0 * 31.63 1 ,1 0 6 .8 7 1 ,1 0 6 .8 8 31.63 1 ,1 0 6 .8 7 1 ,1 0 6 .8 8 * * u se th e s y s te m for in d iv id u a ls a n d o th e r d e p o sito rs. A lso , m a n y c it y b a n k s a re n o w d e v e lo p in g record s y s te m s for th eir c o u n tr y co r resp o n d e n ts. In m o s t ca se s, th e c o u n tr y b a n k h a s n o co m p u te r e q u ip m e n t. T h e y s im p ly p rep a re th e d a ta a n d se n d th e m to th e c ity c o r re sp o n d e n t for p r o cessin g . T h e r e p o rts a re p rep a red b y th e c ity co r re sp o n d e n t a n d d is tr ib u te d to th e farm c u s to m ers b y th e c o u n tr y b ank. W h ile th e a d v a n ta g e s to su c h a p rogram for b a n k s are o b v io u s, h a za r d s a n d p r o b le m s h a v e to b e s o lv e d b e fo r e a n efficien t a n d p ro fita b le o p e r a tio n c a n e x ist. F r a n c h isin g a n e x is tin g p ro gram m a y e lim in a te so m e p ro b lem s o f d e v e lo p in g a n e w re c o rd -k eep in g s y s te m b y th e lo c a l b ank. H o w e v e r , e v e n th is ty p e p rogram req u ires c o n sid era b le tim e a n d effo rt to b e o p er a tio n a l. A n y b a n k c o n sid e r in g su ch a p rogram sh o u ld s tu d y th e c o st a n d p o te n tia l b e n efits c a r e fu lly . R o b e r t E. Sw eeney Illustrations reprinted from Bank EDP Farm Recordkeeping Programs (Copyright 1968) with permission from The American Bankers Association. JU LY 1968 93 C o u n t y A n d U J o n e m b G r o w p l o y m t h e n t The development of more jobs in urban slums and im poverished rural areas is an immediate, urgent need, de manded by the present critical problems of joblessness, under employment, and substandard earnings in these areas. . . . More readily available manpower services are needed in both urban slums and rural areas to help disadvantaged workers find out about, qualify for, and obtain jobs. — 1967 M anpow er R eport of the President W ith a n u n e m p lo y m e n t r a te b e lo w 4 p e r ce n t for tw o a n d a h a lf y e a r s, th e D is t r ic t s ta te s a n d th e n a tio n h a v e e x p e r ie n c e d “h ig h e m p lo y m e n t.” Y e t u n e m p lo y m e n t rem a in s a c r u c ia l p rob lem . I n m a n y rural areas th e p a c e o f te c h n o lo g y in a g r ic u ltu r e h a s r e d u ced farm e m p lo y m e n t fa ste r th a n n o n fa rm jo b s h a v e b ee n c rea ted . P o c k e ts o f p o v e r ty a n d u n e m p lo y m e n t e x is t in th e m id s t o f p ro sp ero u s e c o n o m ie s w h er e m a n y jo b s, b o th s k ille d a n d u n sk ille d , go u n fille d . W h e re a re th e s e a rea s o f e x c e s s iv e u n e m p lo y m e n t in th e D is t r ic t sta te s? W h ere are th e jo b o p p o r tu n itie s a s r e v e a le d b y th e ra tes o f e m p lo y m e n t grow th a m o n g co u n tie s? D is tr ic t A r e a s o f H igh U n e m p lo y m e n t T h e lis t o f a rea s g iv e n p r efer e n c e in F e d e r a l p ro c u r e m e n t p o lic y in d ic a te s th e a r ea s w ith th e m o s t sev e r e u n e m p lo y m e n t. T h is p o lic y g iv e s Digitized 94 for FRASER P a t t e r n s first p re fe r e n c e to “firm s o p e r a tin g in s e c tio n s o f c it ie s or s ta te s w ith h ig h c o n c e n tr a tio n s o f h a r d c o re u n e m p lo y e d , p r o v id e d th e y a g r e e to e m p lo y d is a d v a n ta g e d u n e m p lo y e d or u n d e r e m p lo y e d p e r so n s” ; a n d se c o n d p r efer e n c e to “firm s o p e r a tin g in p e r s is te n t or su b s ta n tia l la b o r su r p lu s a r e a s.” B o th ty p e s o f a r e a s h a v e u n e m p lo y m e n t r a tes e x c e e d in g 6 p e r c e n t a fte r a llo w a n c e is m a d e for se a s o n a l a n d te m p o r a r y fa cto rs. F ifty -fiv e s e c tio n s o f 2 2 la b o r m a r k e ts a rea s in th e n a tio n m e e t th e first c la s sific a tio n . In th e D is t r ic t sta te s, 16 o f th e s e s e c tio n s a re in 4 areas: A tla n ta , B ir m in g h a m , N e w O rlea n s, a n d th e M is s is s ip p i D e lta . T h e lim ita tio n s o f th e su r v e y to th e v e r y la r g e s t c it ie s u n d o u b te d ly r e su lte d in th e o m issio n o f u rb a n a r e a s o f c o n c e n tr a te d u n e m p lo y m e n t in m a n y o f th e 1 5 0 m a jo r lab or m a rk ets. T h e h ig h u n e m p lo y m e n t r a tes in s e c tio n s o f A tla n ta , B ir m in g h a m , a n d N e w O rlea n s p e r sist, d e s p ite o v e r a ll lo w r a te s in e a c h m etro p o lita n area. A ll o f th e s e s e c tio n s o f h ig h u n e m p lo y m e n t a re n ea r th e c e n tr a l b u sin e ss d istr ic t. O f th e 5 2 0 sm a lle r a r e a s o f su b s ta n tia l la b o r su r p lu s (t h e se c o n d c la s s if ic a t io n ) , 7 6 a re in D i s tr ic t sta te s. In th e r e g io n A la b a m a h a s th e s m a ll e s t n u m b er o f su c h a r e a s ( 4 ) , a n d G eo r g ia h a s M O N T H L Y R E V IE W I Above Average More than 50 percent 97 Major Labor Market Areas (central county indicated by number) Small Standard Metropolitan Areas (central county indicated by number) METROPOLITAN AREAS Georgia Alabama 15. *16. *17. *18. *19. *20. *1. 2. 3. *4. 5. 6. Birmingham Gadsden Huntsville Mobile Montgomery Tuscaloosa Florida 7. *8. *9. 10. 11. 12. *13. 14. Fort Lauderdale Jacksonville Miami Orlando Pensacola Tallahassee Tampa-St. Petersburg West Palm Beach Albany Atlanta Augusta Columbus Macon Savannah Louisiana *21. 22. 23. 24. *25. *26. Baton Rouge Lafayette Lake Charles Monroe New Orleans Shreveport Mississippi *27. Jackson Tennessee *28. *29. *30. *31. Chattanooga Knoxville Memphis Nashville *Major Labor Market Area J U L Y 1968 95 th e la r g e s t n u m b er ( 3 6 ) . N e a r ly a ll o f th e sm a ller a rea s a n d th e M is s is s ip p i D e lt a a re ru ral c o u n t ie s so m e d is ta n c e from fa st-g r o w in g u rb a n areas. L o c a tio n o f F ast G ro w in g C o u n tie s Sixth District States (1962-66 Job Growth Exceeding 50 Percent) Types of Counties J o b G row th b y C o u n ty S iz e I f o n e th in k s o f th e le s s p o p u la te d c o u n tie s a s m o re rural, th e n h e co u ld c o n c lu d e th a t jo b s in ru ral c o u n tie s grew fa ste r d u rin g th e 1 9 6 2 -6 6 p e rio d , a s in d ic a te d b y m e a n g row th r a tes o f c o u n tie s o f d iffe r e n t s iz e s in th e ch a rt. H o w ev e r, d iffe r e n c e s b e tw e e n th e gro w th r a te s from c o u n ty to c o u n ty a re greater for th e sm a lle r c o u n tie s a s a grou p th a n for th e larg er o n e s. T h is is in d i c a te d b y th e co efficien ts o f v a r ia tio n (t h e s ta n d a rd d e v ia tio n a s a p e r c e n t o f th e m e a n ) o f th e g row th r a tes for d iffe r e n t c o u n ty siz e s. E x tr e m e ly h ig h or lo w r a tes o f e m p lo y m e n t grow th a re m o re lik e ly to c h a ra cterize th e sm a ll c o u n tie s. In p art, th e g reater v a r ia b ility in th e jo b g row th b e tw e e n sm a ll c o u n tie s r e su lts from th e c o n c e n tr a tio n o f e m p lo y m e n t in a few e sta b lis h m e n ts . I f th e fo r tu n e s o f e v e n o n e co m p a n y in a s m a ll c o m m u n ity a re u n u s u a lly g o o d or b ad , th e r e is lit t le sc o p e for th e c o m p e n s a tio n o f g a in s or lo s s e s b y o th e r e sta b lis h m e n ts in th e area. T h e im p o r ta n t e x c e p tio n to th e c o u n ty s iz e a n d jo b grow th tren d is in c o u n tie s la r g e e n o u g h th a t th e p re ssu r e s o f r u ra l-ty p e u n e m p lo y m e n t are m in im a l a n d sm a ll en o u g h th a t th e c o m m u n ity is n o t p la g u e d w ith e x te n s iv e p o v e r ty a r ea s w ith h ig h u n e m p lo y m e n t. T h e s e c o u n tie s w ith 255 0 ,0 0 0 jo b s a n d a p o p u la tio n in th e 5 0 -1 2 5 ,0 0 0 ra n g e a re cen tra l c o u n tie s o f sm a ll m e tr o p o lita n a r ea s or frin g e c o u n tie s o f th e la r g e m e tr o p o lita n areas. J o b G row th by C o u n ty L o c a tio n A lth o u g h th e sm a lle r c o u n tie s grew fa ster, o n Small counties, on average, had a large increase in jobs, but the growth was far from uniform. Mean Percent Increase 0 10 0 20 20 30 40 50 60 40 60 80 100 120 C oefficient of Variation, Percent 96 for FRASER Digitized In Standard Metropolitan Statistical Areas (SMSA’s) Adjacent to SMSA’s Proximate to SMSA’s Counties in or near SMSA’s In or adjacent to medium-size cities Rural Total Number Percent 9 36 21 (66) 15 16 9 37 22 (68) 15 16 97 100 a v era g e, a n e x a m in a tio n o f th e fa s te s t a n d th e s lo w e s t g ro w in g c o u n tie s in d ic a te s th a t g e n e r a lly th e fa s te s t g ro w in g c o u n tie s w ere n e a r p o p u la tio n c e n te r s a n d th e s lo w e s t w ere d e fin ite ly rural. T h e ta b le sh o w s th a t 6 6 , or n e a r ly 7 0 p e r c en t, o f th e c o u n tie s w ith a n in c r e a s e o f m o r e th a n 5 0 p e r c e n t in jo b s w e re p a r t o f or c lo s e to m e tr o p o lita n a rea s. T h e p r o x im a te c o u n tie s a re a d ja c e n t to o th e r fa s t g ro w in g c o u n tie s n e x t to p o p u la tio n c e n te r s. T h u s , th e y w o u ld r e fle ct th a t th e fa s t sp r e a d o f jo b s e n c o m p a s se d m o re th a n ju s t th e a d ja c e n t c o u n tie s. N e a r ly a ll o f th e s e c o u n tie s h a d a sm a ll n u m b er o f jo b s b u t w ere lo c a te d n ea r th e p e r ip h e r y o f m e tr o p o lita n a rea s. O f th e 16 fa st g ro w in g ru ral c o u n tie s, 13 h a d a 196 2 e m p lo y m e n t o f le s s th a n 2 ,0 0 0 s o th a t th e o p e n in g o f ju s t a fe w m e d iu m -s iz e firm s in th e s e c o m m u n it ie s w o u ld d r a m a tic a lly a ffe c t th e g row th rate. O f th e 2 2 c o u n tie s w ith fe w e r jo b s in 1 9 6 6 th a n in 1962, o n ly o n e h a d m o r e th a n 2 ,0 0 0 jo b s a n d s e v e n h a d b e tw e e n 1 ,0 0 0 a n d 2 ,0 0 0 jo b s. T h e d e c lin e in A n d e r so n C o u n ty , T e n n e s s e e (t h e la r g e s t c o u n ty r e g is te r in g a jo b d e c l i n e ) , r e su lte d from a c u tb a c k in a c tiv ity b y th e A to m ic E n e r g y C o m m issio n a t O ak R id g e . O f th e r e m a in in g c o u n tie s, 10 lo s t jo b s b e c a u se o f d e c lin in g m a n u fa c tu r in g a n d m in in g jo b s a n d 10 b e c a u se o f a lo ss in tra d e a n d se r v ic e jo b s. M o s t o f th e s iz a b le d e c lin e s in jo b s in th e s e c o m itie s c o u ld b e tr a ced to th e c lo s in g o r r e d u c tio n in e m p lo y m e n t b y th e la r g e s t firm in th e c o u n ty . T h e h ig h r a te o f v a r ia b ility in th e e m p lo y m e n t g row th o f s m a ll c o u n tie s r e su lts fro m th e fa s t gro w th o f sm a ll c o u n tie s n ea r b u r g e o n in g p o p u la tio n c e n te r s a n d th e d e c lin e in jo b s in is o la te d rural c o u n tie s. W ith in m e tr o p o lita n a re a s, th e r in g or n o n c e n tra l c o u n tie s grew fa ste r th a n th e ir corre sp o n d in g ce n tr a l or m o s t p o p u lo u s c o u n tie s. O f th e 2 2 rin g c o u n tie s in th e m a jo r la b o r m a rk et a rea s, 17 h a d a fa ste r g row th r a te th a n th e c e n tral c o u n ty w ith w h ic h th e y w e r e a ss o c ia te d . F o r a ll m u lti-c o u n ty m a jo r la b o r m a rk ets, jo b s grew 3 8 p e r c e n t in th e r in g c o u n tie s a n d 2 3 p e r c e n t M O N T H L Y R E V IE W in th e ce n tr a l co u n tie s. T h u s, th e fa s t jo b grow th is ta k in g p la c e in rin g c o u n tie s, a n d th e se c tio n s o f c o n c e n tr a te d u n e m p lo y m e n t are in cen tra l c o u n tie s. N o t o n ly w ere m o s t fa ste r g ro w in g c o u n tie s lo c a te d n ea r m e tr o p o lita n a rea s, b u t m o s t m e tro p o lita n a rea s h a d a d jo in in g c o u n tie s w ith fa st grow th rates. F o u r te e n o f th e 18 la rg e m e tr o p o li ta n a rea s c o n ta in a fa s t g ro w in g c o u n ty e ith e r w ith in or a d ja c e n t to it s b ord ers. M o reo v er, th e p r e se n c e o f fa s t g row in g p erip h e ra l c o u n tie s n ea r p o p u la tio n c e n te r s w a s n o t d e p e n d e n t u p o n fa st g ro w th in th e cen tra l c o u n ty . T h e la r g e s t n u m b er o f fa s t gro w in g c o u n tie s w a s lo c a te d n ea r A tla n ta , J a c k so n , N a s h v ille , a n d N e w O rlea n s. Y e t th e c e n tra l c o u n ty for a ll o f th e s e a r ea s h a d a b e lo w a v e ra g e grow th rate. O f th e c e n tr a l c o u n tie s, o n ly L im e sto n e C o u n ty , A la b a m a ( H u n t s v ille ) , a n d R ic h m o n d C o u n ty , G eo rg ia ( A u g u s t a ) , h a d a g row th ra te greater th a n th e 3 4 p e r c e n t m e a n o f a ll co u n tie s. B o th th e fa s te s t a n d s lo w e s t g ro w in g la r g e c o u n tie s (L im e sto n e , A la b a m a , a n d A n d e r so n , T e n n e s s e e , r e s p e c tiv e ly ) w ere h e a v ily in flu e n c e d b y c h a n g e s in F e d e r a l in s ta lla tio n s in th e s e c o u n tie s. u la tio n c e n te r s d u r in g th e 1 9 6 2 -6 6 p e rio d r e su lte d in la rg e p a r t from th e sp r e a d o f jo b s o u ts id e th e p r e se n tly d efin e d b o u n d a r ie s o f th e p o p u la tio n cen ters. T h u s, th e S ix th D is t r ic t p a tte r n s o f jo b g row th a n d a r ea s o f su b s ta n tia l u n e m p lo y m e n t in d ic a te th a t m a n y o f th e fo r c e s in a r ea s o f u n e m p lo y m e n t a n d u n d e r e m p lo y m e n t in th e n a tio n a re a ls o p r e se n t in th e D is t r ic t sta te s. S tu d ie s o f th e n a tio n a l p ro b lem b y th e U .S . D e p a r tm e n t o f L abor a n d o th e r G o v e rn m en t a n d p r iv a te g ro u p s r e v e a l th a t m a n y o f th e im p o v e r ish e d p e r so n s are u n e m p lo y e d b e c a u se o f p e rso n a l c h a r a c te r is tic s, su c h a s p oor ed u c a tio n , la c k o f jo b sk ills, a n d /o r p o o r h e a lth . T h e u n e m p lo y m e n t p ro b lem ca n b e h e lp e d b y b e tte r sc h o o ls, jo b tr a in in g p ro gram s, a n d h e a lth fa c ilitie s . S u c h m e a su r e s, h o w ev er, m a y n o t b e th e s o le so lu tio n to th e p ro b lem s o f h ig h u n e m p lo y m e n t area s. S in c e th e a re a s o f g re a te st e m p lo y m e n t o p p o r tu n itie s a re n o t th o s e o f g r e a te st u n e m p lo y m en t, e ffe c tiv e m e a n s m u s t b e fo u n d to b rin g th e u n e m p lo y e d w ork er a n d th e jo b to g eth er. B e tte r p u b lic tra n sp o r ta tio n , jo b in fo r m a tio n , a n d m o re e ffe c tiv e r e c ru itm e n t a re e ss e n tia l. R T h e fa ste r grow th o f c o u n tie s o u ts id e th e p o p B a n k A n n o u n c e m e n ts The Ban k of W oodstock, Woodstock, Georgia, a non member bank, began to rem it at par on June 1 fo r checks drawn on it when received from the Federal Reserve Bank. On June 18 the First Peoples Bank, Fort W alton Beach, Florida, opened as a newly organized non member bank and began to rem it at par. Officers are Gary E. Lee, president, and Roger B. Taylor, vice president and cashier. Capital is $250,000; surplus and other cap ital funds, $150,000. J U L Y for 1 9 6FRASER 8 Digitized ic h a r d L ong R E V IS E D P U B L IC A T IO N S A Review of Georgia’s Economy, 1960-68, r e v ise d M a y 1968. A Review of M ississippi’s Economy, 196068, r e v ise d J u n e 1968. Statistics on the Developing South, r e v ise d J u n e 1968. N o w a v a ila b le u p o n r e q u e st to th e R e se a r c h D e p a r tm e n t, F e d e r a l R e se r v e B a n k o f A t la n ta , A tla n ta , G eo rg ia 3 0 3 0 3 . 97 S i x t h D is t r ic t S t a t is t ic s S e a s o n a lly A d ju sted (All d ata are in d e x e s, 1 9 5 7 - 5 9 = One M onth Ago L a te s t M onth (1968) Two M onths Ago 1 0 0 , u n le s s in d ic a te d o th e r w ise .) One Y ear Ago O ne Two M onth M onths Ago Ago One Year Ago 161 156 107 80 160 155 105 83 159 154 102 96 157 150 103 83 . May . May 2.6 41.5 2.7 40.2 2.9 40.8 2.7 42.2 . Ju n e . Ju n e 295 227 222 289 221 213 261 198 191 L a te s t M onth (1968) SIXTH DISTRICT . May INCOME AND SPENDING P e rso n a l In co m e (Mil. $, A nnual R ate) . Apr. 64,347 64 ,2 5 5 r 6 3 ,8 4 4 r 58,260 M a n u fa c tu rin g P a y r o l l s ..............................May , May 225 219 221 201 Farm C ash R e c e i p t s ...................................Mar. Mar. 154 146 158 139 C r o p s ............................................. . Mar. 183 154 167 137 L i v e s t o c k ...................................................... .Mar. Mar. 148 152 156 145 In s ta lm e n t C re d it a t B anks* (Mil. $) New L o a n s ................................................. .May May 329 322 330 301 R e p a y m e n ts .............................................May . May 270 293 269 277 . May 177p 168r 178 163 Retail S a le s ................................... U n e m p lo y m e n t R ate (P e rc e n t of W ork Force) . . Avg. W eekly Hrs. in Mfg. (H rs.) FINANCE AND BANKING 289 223 22 8 r PRODUCTION AND EMPLOYMENT 141 140 172 133 156 114 104 122 131 109 181 141 130 61 140 139 170 133 156 113 104 121 130 109 177 141 132 64 141 140 171 134 156 114 105 121 133 109 181 141 133 67 137 136 168 130 151 114 103 119 128 108 180 137 125 61 3. 7 3. 7 3. 3 3. 8 1.8 41.1 207 240 180 151 107 225 1.9 40.3 147 194 107 149 109 227 2.0 41.0 184 222 151 155 116 219 2.2 40 .8 165r 191r 143 145 113 223 FINANCE AND BANKING L oans* All M em ber B a n k s ................................... Large B a n k s ............................................ D eposits* All M em ber B a n k s .................................. . L arge B a n k s ............................................ . B an k D e b i ts * / * * ............................................ , Ju n e 276 242 273 241 274 242 251 225 Ju n e Ju n e May 208 178 223 208 181 227r 207 182 225 189 169 199 P e rso n a l In co m e (Mil. $, A nnual R ate) . Apr. M a n u fa c tu rin g P a y r o l l s ............................. , May F arm C a sh R e c e i p t s .................................. , M ar. 8,790 199 150 8 ,701r 200 150 ALABAMA INCOME 8 ,377r 197 156 7,742 181 146 PRODUCTION AND EMPLOYMENT N onfarm E m p l o y m e n t ............................... M a n u fa c tu rin g ....................................... . N o n m a n u f a c t u r i n g .................................. . C o n s t r u c t i o n ....................................... , F arm E m p lo y m e n t ....................................... U n e m p lo y m e n t R ate (P e rc e n t of W ork F o r c e ) .................... Avg. W eekly Hrs. in Mfg. (Hrs.) . . . May May May May Apr. 127 127 126 116 69 126 127 126 114 62 127 128 127 116 68 125 125 125 115 68 May May 4.6 40.6 4.5 41.1 4.4 41.4 4.4 41.1 M em ber B ank L o a n s ................................... Ju n e M em ber B ank D e p o s i t s ........................., J u n e B an k Debits** ............................................. May 256 197 202 251 199 211 P e rso n a l In co m e (Mil. $, A nnual Rate) . Apr. 12,448 M a n u fa c tu rin g P a y r o l l s ......................... . May 224 Farm C ash R e c e i p t s .............................. . Mar. 147 12,409r 12,486r 11,252 216 220 203 134 159 135 PRODUCTION AND EMPLOYMENT N onfarm E m p l o y m e n t ......................... M a n u fa c tu rin g ................................... N o n m a n u f a c t u r i n g .............................. C o n s t r u c t i o n ................................... Farm E m p lo y m e n t ................................... U n em p lo y m en t R ate (P e rc e n t of W ork F orce) . . . . Avg. W eekly Hrs. in Mfg. (H rs.) . . . . . . . May May May May Apr. 141 134 144 143 52 140 133 144 148 56 141 133 145 152 58 137 132 139 139 51 . May . May 3.3 40.8 3.3 40.1 3.2 40.7 3.4 40.3 . June . Ju n e . May 288 226 251 284 227 249r 288 226 256 260 203 223 P e rso n a l In co m e (Mil. $, A nnual R ate) . Apr. M a n u fa c tu rin g P a y r o l l s ......................... ..... May F arm C ash R e c e i p t s ................................... Mar. 9,926 203 151 9 ,9 2 3 r 194 161 196 183 9,153 185 138 FINANCE AND BANKING M em b er B ank L o a n s .............................. M em b er B an k D e p o s i t s ......................... B ank D e b i ts * * ............................................. LOUISIANA INCOME PRODUCTION AND EMPLOYMENT N o n farm E m p l o y m e n t .............................. M a n u fa c tu rin g ................................... .... . N o n m a n u f a c t u r i n g .................................. . C o n s t r u c t i o n ....................................... . F arm E m p lo y m e n t ......................................... U n e m p lo y m e n t R ate (P e rc e n t of W ork F o r c e ) .................... Avg. W eekly Hrs. in Mfg. (H rs.) . . . May May May May Apr. 131 121 133 149 59 131 121 133 160 60 131 121 133 153 61 128 118 130 146 58 May May 4.7 43.1 4.5 41.2 4.3 42.5 4.5 41.8 M em b er B an k L o a n s * .............................. Ju n e M em b er B an k D e p o s i t s * ......................... Ju n e Bank D e b i ts * / * * ............................................., May 233 170 182 232 169 184 235 169 182 224 160 173 5 ,0 3 8 r 251 143 5 ,009r 258 182 FINANCE AND BANKING M ISSISSIPPI INCOME P e rso n a l In co m e (Mil. $, A nnual R ate) . Apr. M a n u fa c tu rin g P a y r o l l s .............................. May Farm C ash R e c e i p t s ................................... Mar. 4,965 259 132 4,569 220 144 PRODUCTION AND EMPLOYMENT FINANCE AND BANKING FLORIDA 00 P e rso n a l In co m e (Mil. $, A nnual R ate) . Apr. 18,167 M a n u fa c tu rin g P a y r o l l s .............................. May 277 Farm C ash R e c e i p t s ................................... Mar. 188 O cn INCOME 264 163 N onfarm E m p l o y m e n t .............................. M a n u fa c tu rin g ........................................ N o n m a n u f a c t u r i n g ................................... C o n s t r u c t i o n ........................................ Farm E m p lo y m e n t ........................................ U n em p lo y m en t R ate (P e rc e n t of Work F o r c e ) .................... Avg. W eekly Hrs. in Mfg. (H rs.) . . . 17,856r 16,289 254 200 216 235 183 180 267 164 252 141 PRODUCTION AND EMPLOYMENT N onfarm E m p lo y m en t GEORGIA o o -vj N o n farm E m p l o y m e n t ......................... . May M a n u fa c tu rin g ................................... . May A pparel .................................................. C h e m i c a l s ............................................. . May F a b ric a te d M e t a l s .............................. . May F o o d ........................................................... . May Lbr., W ood Prod., F urn. & Fix. . . . May P a p e r ...................................................... . May P rim ary M e t a l s ................................... . May T ex tiles ................................................. . May T ra n sp o rta tio n E q u ip m e n t . . . . May N o n m a n u f a c t u r i n g ................................... . May C o n s t r u c t i o n ........................................ . May Farm E m p lo y m e n t ................................... . Apr. U n e m p lo y m e n t R ate (P e rc e n t of W ork Force) . . . . . Ma y In su re d U n em p lo y m en t ( P e rc e n t of Cov. E m p . ) .................... . May Avg. W eekly Hrs. in Mfg. (H rs.) . . . May C o n stru c tio n C o n t r a c t s * .................... . May R e s i d e n t i a l ............................................. . May All O t h e r .................................................. . May E le ctric P ow er P ro duction** . . . . May C o tton C o n s u m p ti o n * * ......................... . May P e tro l. Prod, in C o a stal La. a n d Miss.* * J u n e . ......................... May Digitized for98 FRASER 157 156 154 151 May May May May Apr. 142 151 138 141 51 142 150 138 143 64 143 151 140 155 59 138 145 135 141 51 May May 4.7 40.9 4.3 39.8 4.1 41.1 5.2 40.3 M em b er B an k L o a n s * .............................. Ju n e M em ber B ank D e p o s i t s * ......................... Ju n e B an k D e b i ts * / * * ............................................. May 328 239 211 327 240 228 327 237 246 298 222 207 FINANCE AND BANKING M O N T H L Y R E V IE W L a te s t M onth (1968) One M onth Ago Two M onths Ago O ne Y ear Ago O ne L a te s t M onth (1968) N o n m a n u f a c t u r i n g ......................... C o n s t r u c t i o n .............................. Farm E m p lo y m e n t .............................. . . Apr. U n e m p lo y m e n t R ate (P e rc e n t of W ork Force) . . . . . May Avg. W eekly Hrs. in Mfg. (H rs.) . . . May TENNESSEE INCOME P e rso n a l In co m e (Mil. $, Ann. R ate) Apr. 10,051 M a n u fa c tu rin g P a y r o l l s ......................... . May 215 F arm C ash R e c e i p t s .............................. . Mar. 144 10,115r 10,099r 213 215 107 125 9,255 188 133 Two M onth Ago One M o n th s Ago Y ear Ago 134 163 66 135 172 63 136 183 70 132 150 65 3.6 40.6 4.0 39.7 3.4 40.7 4.3 39.9 272 191 252 271 194 252 266 194 253 248 181 223 FINANCE AND BANKING PRODUCTION AND EMPLOYMENT N o n farm E m p l o y m e n t ......................... M a n u fa c tu rin g ................................... . May . May 139 148 139 148 140 149 *For S ix th D istrict a re a only. O th e r to ta ls fo r e n tire six s ta te s . 136 144 M em b er B an k L o a n s * .................... M em ber B ank D eposits* . . . . B ank D e b i t s * / * * .............................. p-P relim in ary e stim a te . ‘ Daily a v e ra g e b asis. D e b its to D e m a n d D e p o s it A c c o u n ts Insured C om m ercial B an k s in t h e S ixth D istrict (In T h o u sa n d s o f D ollars) May 1968 April 1968 P e rc e n t C h an g e P e rc e n t C h a n g e Y ear-to-D ate 5 m os. May 1968 from 1968 May April May from 1967 1968 1967 1967 Y ear-to-D ate 5 m os. May 1968 fro m 1968 April May fro m 1968 1967 1967 STANDARD METROPOLITAN STATISTICAL AREAS! B irm in g h am . . . G ad sd en ......................... H u n t s v i l l e .................... M obile ......................... M o n tg o m ery . . . . T u s c a l o o s a .................... .................... L a k e la n d M onroe C ounty . . . 1,712,518 66,519 192,494 566,870 354,149 116,406 l,6 2 7 ,5 2 5 r 63,207 190,022 452,422 337 ,6 2 4 94,142 1,678,728 61,956 185,981 500,144 302,689 100,199 +5 +5 +1 +5 +5 +24 +2 +7 +4 + 13 + 17 + 16 +7 +7 +5 + 11 + 12 +10 827,759 1,653,747 2,860,487 639,764 225,175 168,022 883,062 l,6 8 9 ,2 0 3 r 2,952,952 663,884 212,413 151,815 656,910 1,542,624 2 ,295,598 575,725 206,202 153,405 -6 -2 -3 -4 +6 + 11 +26 +7 +25 +6 +9 + 10 +20 +7 +23 +15 + 10 + 11 1,603,757 504,521 1,654,067 534,995 1,339,764 426,243 -3 -6 +20 + 18 +20 + 18 A lbany ......................... A tlan ta ......................... A u g u s t a ......................... C o l u m b u s .................... M acon ......................... Savannah .................... 100,542 5,776,176 334,140 249,277 278,998 326,651 99,185 5 ,442,724r 346,529 241,981 284,832 294,596 89,034 +1 5,062,575r +6 306,997 -4 219,488 +3 257,436 -2 286,015 + 11 +13 + 14 +9 + 14 +9 + 14 + + + + + + B aton R ouge . . . . L a fay e tte .................... Lake C h a rle s . . . . New O rlea n s . . . . 642,031 143,018 161,850 2,659,028 632,861 135,744 157,237 2,529,585 596,576 139,096 146,902 2,547,273 +1 +5 +3 +5 +8 +3 + 10 +5 + 10 + 13 + 10 +7 ......................... 624,512 672,106 683,714 -7 -9 + 10 C h a tta n o o g a . . . . Knoxville .................... N ash v ille .................... 660,204 526,793 1,999,288 657,254 517,465 1,884,674 596,533 469,963 1,717,254 +0 +2 +6 + 11 +12 + 16 +9 + 10 + 14 A n n i s t o n ......................... D othan ......................... S e l m a .............................. 77,691 70,142 47,519 71,896 67,420 46,352 63,967 64,983 43,619 +8 +4 +3 +21 +8 +9 +2 + 10 +8 B artow ......................... B r a d e n t o n .................... B revard C ounty . . . D aytona B each . . . Ft. M yers— N. Ft. M yers . . . G a i n e s v i l l e .................... 40,643 78,513 242,011 100,727 36,857 88,024 237,569 103,041 38,387 70,597 236,947 89,899 + 10 -1 1 +2 -2 +6 + 11 +2 + 12 -2 + 17 +9 +8 107,914 101,935 103,884 96,150 80,554 86,797 +4 +6 +34 + 17 +33 + 16 Ft. L a u d e rd a le — Hollywood . . . . Ja c k s o n v ille . . . . M i a m i .............................. O r l a n d o ......................... P e n s a c o la .................... T a lla h a s se e . . . . T am pa— S t. P e te rs b u rg . . W. P alm B each . . . Jackson May 1968 13 14 11 13 13 11 OTHER CENTERS • In c lu d e s only b a n k s in th e S ixth D istrict p o rtio n of th e s ta te . J U L Y 1968 St. A u g u stin e . . . . St. P e te rs b u rg . . . S a r a s o t a ......................... T am p a ......................... W inter Haven . . . A th en s ......................... B r u n s w i c k .................... E l b e r t o n ......................... G a i n e s v i l l e .................... LaG range .................... R o m e ............................. V a l d o s t a ......................... A bbeville .................... A l e x a n d r i a .................... H a m m o n d .................... New I b e r i a .................... P la q u em in e . . . . T h i b o d a u x .................... Biloxi-G ulfport . . H a ttie sb u rg . . . M eridian .................... N a t c h e z ......................... P a s c a g o u la — M oss P o in t . . V i c k s b u r g .................... Yazoo City . . . . B r i s t o l .............................. Jo h n so n City . . . K ing sp o rt .................... April 1968 May 1967 130,921 40,155 61,694 23,955 366,895 124,009 852,483 77,813 132,070 42,040 65,507 23,029 404,840 146,555 845,750 73,301 119,731 36,608 57,925 19,508 318,595 104,433 700,827 64,103 -1 -4 -6 +4 -9 -1 5 +1 +6 +9 +10 +7 +23 +15 +19 +22 +21 +8 +8 +9 +8 +1 +26 +25 +13 86,312 45,159 103,001 15,697 73,709 29,989 23,279 25,855 79,749 59,167 87,889 45,487 105,450 15,692 73,575 38,448 21,813 23,063 80,666 58,583 73,905 40,193 79,008 17,719 73,227 34,507 23,799 25,187 72,473 54,515 -2 -1 -2 +0 +0 -2 2 +7 +12 -1 +1 +17 +12 +30 -1 1 +1 -1 3 -2 +3 +10 +9 +17 +14 +24 -5 -0 +5 -1 +7 +10 +8 10,928 149,012 6,697 40,942 35,697 20,252 26,278 12,433r 146,326 6,293 38,029 37,604 12,398 25,531 11,265 132,229 6,499 42,644 34,414 12,340 22,477 -1 2 +2 +6 +8 -5 +63 +3 -3 +13 +3 -4 +4 +64 +17 +9 +4 +5 +2 +4 +24 +9 113,005 64,257 42,678 69,877 40,237 115,158 59,362 37,646 61,240 39,870 105,827 55,126 31,927 69,029 36,344 -2 2 +8 +13 +14 +1 +7 +17 +34 +1 +11 +11 +9 +19 +3 +7 67,088 40,651 35,962 65,189 42,982 34,202 56,374 41,294 35,297 +3 -5 +5 +19 -2 +2 +21 +5 +8 80,403 85,547 176,367 80,829 81,556 177,628 81,461 76,929 159,675 -1 +5 -1 -1 +11 +10 -2 0 +8 +11 XTH DISTRICT, Total 35,136,382 34,682,842r 31 ,291,337r +1 +12 +13 A la b a m a ! .................... 4,504,409 F l o r i d a } : ......................... 10,769,734 G eo rg ia! .................... 9,087,249 L o u isian a* ! . . . . 4,494,855 1,481,577 M ississip p i* ! . . . 4,800,558 T e n n e sse e * ! . . . 4,330,621 r ll,2 2 2 ,9 1 5 r 8,753,777r 4,306,510r 1,486,756 4,582,042 +4 -4 +4 +4 -4 +5 +12 +16 +13 +5 +2 +14 +12 + 17 +13 +7 +10 +13 4,015,301 9,257,929 8,076,527r 4,266,583 1,452,306 4,222,691 tP a rtia lly e sti 99 D is tric t B u s in e s s C o n d itio n s L 1 — Billions of D ollars — A nnual R ate — S e a s . Adj. — 1 9 5 7 - 5 9 :1 0 0 — S e a s. Adj. I Personal Income Nonfarm Employment Unemployment Rate Average Weekly Hours * Mfg. Payrolls 1965 ‘Seas. adj. figure; not an index. 1966 1967 1968 fNew series. R ising m an u factu rin g payrolls and c o n su m er sp e n d in g buoyed a g en era lly rob u st D istrict e c o n o m y re cen tly , th u s m u tin g so m e sig n s of slu g g is h n e s s . H igher c a sh r e c e ip ts s u g g e s t farm ers are a lso con trib u t ing to g a in s. A sharp pick-up in bank lo a n s during June sh o u ld h elp fin a n ce h e ig h te n e d e c o n o m ic a ctivity. C onstruction h a s im proved, d e sp ite high fin a n cin g and labor c o s t s . A w ea k e n in g in u n em p lo y m en t s u g g e s ts th a t all se c to r s are not p articip a tin g in th e e x p a n sio n . M anufacturing jo b s, th e average w orkw eek, and payrolls perked up in May, fo llo w in g m ed io cre per fo r m a n ces in th e two p reviou s m o n th s. P r o d u c tio n o f ste e l a n d cru d e p etro le u m in cr e a sed . T h e u n e m p lo y m e n t r a te ro se s lig h tly , b e c a u se th e w o rk fo rce a d v a n ced m ore r a p id ly th a n to ta l job s. A sharp rise in au to m o b ile s a le s ap p aren tly b o o sted retail sp e n d in g in May. F o llo w in g a go o d first q u arter p erfo rm a n ce, n e w car s a le s tu rn ed d o w n w ard in A p ril, b u t reb o u n d e d str o n g ly in M a y a n d su rp a ssed ea r lie r a v e r a g e m o n th ly g a in s. O u tsta n d in g co n su m er cred it, refle c tin g th e im p r o v e m e n t in sa le s, a lso ro se in M a y . During first quarter 1 9 6 8 , c a sh r e c e ip ts from farm s a le s rose sig n ifica n tly ab ove th o se o f a year earlier. L arge rev e n u e s from F lo r id a ’s c itr u s sa le s a c c o u n te d for m u ch o f th e ga in , b u t o th e r sta te s sh a red in th e a d v a n ce. G e n e r a lly , w e a th e r c o n d itio n s rem a in good , a n d h a r v e stin g o f sm a ll g ra in s is n ear c o m p le tio n . P r ic e s o f fe ed e r c a lv e s, h o g s, co tto n , a n d b ro ilers a ll str e n g th e n e d , c a u s 100 for FRASER Digitized in g th e in d e x o f p r ic e s to r e m a in w e ll a b o v e la s t y e a r ’s. Large D istrict b an k s e x p e r ie n c e d a su rge in loan d em an d during June. B u s in e s s le n d in g a c c o u n te d for a m a jo r p o r tio n o f th e a d v a n c e . I n th e n o n b u sin e ss se cto r rea l e s t a te lo a n s, c o n su m e r in sta lm e n t lo a n s, a n d se c u r ity lo a n s sh o w e d th e g r e a te st grow th . L a rg e b a n k s c o n tr a c te d th eir in v e s tm e n t p o rtfo lio s, m a in ly b y r e d u c in g h o ld in g s o f T r e a su r y b ills. R u n -o ffs o f la r g e d e n o m i n a tio n c e r tific a te s o f d e p o s it w e r e m o d er a te . D istrict co n str u c tio n co n tr a c ts sh o w ed renew ed vitality in May. D o lla r v o lu m e o f r e sid e n tia l c o n tr a c tin g ro se to a n e w a ll-tim e h ig h , le d b y sev e ra l la rg e a p a r tm e n t p ro je c ts in F lo r id a . In c r e a se d c o n tr a c tin g o f u tilitie s , m a n u fa c tu r in g p la n ts, a n d office a n d b a n k b u ild in g s w a s a ls o e v id e n t. C o n str u c tio n la b o r c o sts h a v e r ise n sh a r p ly in re c e n t m o n th s, a n d fin a n c in g c o sts r e m a in a t v e r y h ig h le v e ls. NOTE: Data on which statements are based have been adjusted whenever possible to eliminate seasonal influences. M O N T H L Y R E V IE W
@FedFRASER