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MONTHLY REVIEW B U S I N E S S C O N D I T I O N S I N T H E S I X T H F E D FEDERAL RESERVE BANK OF ATLANTA D is tr ic t In the first half of 1 9 4 0 Sixth District busiS u m m a r y ness an^ industry compared favorably with that part of last year. Department store sales were greater by 7 per cent, wholesale trade was up 5 per cent, and business failures were fewer by a considerable margin. Construction contracts were up 1 4 per cent and building permits at reporting cities were 4 0 per cent greater, pig iron production was 2 6 per cent larger, and textile operations averaged 9 per cent higher. For the month of June most comparisons with May are unfavorable. Sales by department stores and wholesale firms declined slightly more than usual and failures increased, construction contracts and building permits were not equal to the large May totals, and textile operations and pig iron production were somewhat lower. In comparison with June last year, however, department store sales were 5 per cent larger and wholesale trade was up 3 per cent and most lines of industrial activity were at higher levels . Trade S ixth D istrict departm ent store sa le s d eclin ed 1 per cent m ore than m igh t h ave been exp ected in June, after recovering in M ay h a lf o f th e A p ril d eclin e. T h e June in d ex w as, h ow ever, 5 per cen t a b ove that fo r June 1 9 3 9 , and in the first h a lf o f 1 9 4 0 departm ent store sa les averaged 7 per cent greater than in that part o f last year. T h e B oard’s sea so n a lly adjusted in d ex fo r th e U n ited States advanced 7 per cent in June and w as 8 per cent above that fo r June la st year, fo llo w in g a less fa v o ra b le sh ow in g in M ay. In the first h a lf o f J u ly D istrict sa les averaged 8 p er cent larger than a year a go, and i f th is ga in sh o u ld h o ld fo r th e entire m onth it w o u ld m ean a rise o f about 9 per cent over June in the sea so n a lly ad ju sted in d ex. ► W h o lesa le trade reflected in sa les figures reported to the U n ited S tates D epartm ent o f C om m erce b y 147 firm s in th is D istrict, w as off 8 per cent in June, a lo ss som ew hat larger than u su al. June sa les w ere 3 per cen t larger than C O N D IT IO N O F 2 2 M EM BER B A N E S IN SELE C TED C IT IE S ( I n T h o u s a n d s o l D o lla r s ) J u ly 1 7, C h a n g e F ro m : 1940 J u n e 1 2 ,1 9 4 0 J u ly 1 9 ,1 9 3 9 — 9 ,7 6 4 + 1 9 ,8 3 0 L o a n s a n d I n v e s tm e n ts — T o ta l......................... $ 6 1 8 ,7 6 7 L o a n s — T o t a l.................................................................. 3 0 7 ,9 2 3 + 357 — 1 ,3 4 5 C o m m e rc ia l, in d u s tr i a l a n d a g r i c u lt u r a l l o a n s .............................................. 1 5 1 ,6 9 6 + 365 — 2 5 ,9 9 3 O p e n m a r k e t p a p e r .............................................. 3 ,3 5 9 — 614 + 369 L o a n s to b r o k e r s a n d d e a le r s i n s e c u r i t i e s .......................................................... 4 ,4 6 4 — 354 — 3 ,1 5 9 O th e r lo a n s fo r p u r c h a s i n g a n d c a r r y i n g s e c u r i t i e s ............................... 1 0 ,7 7 9 + 66 — 1 ,2 3 3 R e a l e s ta te l o a n s ..................................................... 3 2 ,2 3 8 + 7 + 1 ,4 8 9 L o a n s to b a n k s ........................................................ 1 ,0 0 6 + 248 — 251 O th e r l o a n s .................................................................. 1 0 4 ,3 8 1 + 639 + 2 7 ,4 3 3 I n v e s tm e n ts —T o t a l................................................... 3 1 0 ,8 4 4 — 1 0 ,1 2 1 + 2 1 ,1 7 5 U . S . d ir e c t o b l i g a t i o n s ...................................... 1 4 3 ,0 2 3 — 6 ,7 8 3 + 1 ,8 3 2 6 3 ,0 2 3 — 1 ,9 6 2 + 4 ,8 3 8 O b lig a tio n s g u a r a n t e e d b y U. S ............... O th e r s e c u r i t i e s ..................................................... 1 0 4 ,7 9 8 — 1 ,3 7 6 + 1 4 ,5 0 5 R e s e r v e w ith F . R . B a n k ........................................ 1 4 1 ,6 1 6 — 8 ,5 3 8 + 3 0 ,7 7 6 C a s h in v a u l t .................................................................. 1 3 ,1 7 0 — 841 + 930 B a la n c e s w ith d o m e s tic b a n k s ......................... 2 3 3 ,2 3 8 + 2 ,9 7 8 + 5 8 ,6 4 2 D e m a n d d e p o s i t s - a d j u s t e d ................................. 4 3 2 ,2 8 0 + 1 ,5 3 2 + 5 5 ,1 2 1 T im e d e p o s i t s ................................................................. 1 9 1 ,0 6 7 — 537 + 6 ,8 5 3 U . S . G o v e r n m e n t d e p o s i t s ................................. 3 6 ,8 5 7 — 8 ,0 1 6 — 3 ,0 2 5 D e p o s its o f d o m e s tic b a n k s ............................... 2 9 1 ,0 6 1 — 1 4 ,8 3 9 + 5 0 ,9 2 4 B o r r o w in g s ....................................................................... E R A L R E S E R V E D I S T R I C T July 31, 1940 a year a g o , and th e January-June to ta l w as up 5 p er cent from that part o f la st year. ► D ep artm en t store in ven tories d eclin ed ab ou t 4 per cent m ore than u su al in June but w ere 5 per cen t larger than a year ea rlier, and w h o le sa le stocks w ere dow n s lig h tly from M ay but 10 per cent larger than a year a g o . Banking A t w eek ly rep ortin g m em ber banks in lead in g c ities o f th e S ix th D istrict dem and d ep osits-ad ju sted reached a new record le v e l on Ju n e 2 6 b u t h ave m ore recen tly b een slig h tly low er, and other d ep o sits h a v e d eclin ed som ew hat. T o ta l lo a n s and investm ents con tin u ed th e prev io u s d eclin e through J u ly 3 but in the fo llo w in g tw o w eeks there w as a slig h t reversal as both lo a n s and investm en ts h ave increased som ew hat. T h e J u ly 3 total o f lo a n s and investm ents at th ese banks w as the sm a llest reported fo r a n y W ed n esd ay sin ce N ovem b er 1. T o ta l lo a n s h ave not fluctuated m a teria lly in the p ast fou r m onths, but there w as a d eclin e o f ab ou t 3 0 m illio n s o f d o lla rs in the v o lu m e ,of lo a n s fo r com m ercial, in d u strial and a g ricu ltu ral p urposes betw een ea rly January and J u ly 3, and on J u ly 17 they w ere 2 6 m illio n s less than on th e co rresp on d in g W ednesd ay a year a go. B etw een January 3 and J u ly 3, how ever, “All O ther” lo a n s in creased ab ou t 16 m illio n s and th ey have m ore recen tly been about 2 7 m illio n s greater than th ey w ere a year ago. Investm ents h eld b y th ese banks continued th e ea rlier in crease through M arch 2 0 , w hen th ey w ere the la rg est on record, but have sin ce d eclin ed to a p oin t b elow that at th e b e g in n in g o f the year. T h e d eclin e in recent m onths h as b een du e to a reduction in h o ld in g s o f U nited States secu rities, both direct and guaranteed, as “O ther” secu rities h ave sh ow n a stead y though sm a ll in crease through June. ►D em and d ep osits-ad ju sted , after reaching a new peak on June 2 6 , h a v e m ore recen tly been slig h tly less, alth ou gh on J u ly 17 th ey w ere 5 5 m illio n s greater than a year earlier. T im e d ep osits h a v e been som ew hat less in Ju ly, and in ter bank d ep osits h ave d eclin ed about 2 7 m illio n s from the A p r il 17 peak, a lth ou gh on J u ly 17 they w ere up about 51 m illio n s fro m a year ago. ► In recent w eeks to ta l d ep o sits and m em ber bank reserve d ep o sits at th is bank h ave been less than th e record totals CONDITION O F FEDERAL RESERVE BANK O F ATLANTA (In T h o u sa n d s oi D ollars) J u ly 1 7, C h a n g e F ro m : 1 9 4 0 J u n e 1 2 ,1 9 4 0 B ills d is c o u n t e d .............................................................$ 184 + 65 ........ B ills b o u g h i ......................................................................................... In d u s tr ia l a d v a n c e s ................................................... 231 — 27 U n ite d S ta te s s e c u r i tie s , d ir e c t a n d g u a r a n t e e d .................................................................. 8 9 ,8 4 3 — 1 4 ,7 0 7 T o ta l b ills a n d s e c u r i t i e s ................................. 9 0 ,2 5 8 — 1 4 ,6 7 0 F . R . n o te c i r c u la t io n ................................................. 1 6 7 ,4 9 6 + 3 ,3 9 7 M e m b e r b a n k r e s e r v e d e p o s i t s ....................... 2 2 6 ,6 3 6 — 1 3 ,9 0 1 U . S . G o v e r n m e n t g e n e r a l d e p o s i t s ............. 1 3 ,4 7 9 + 307 2 5 ,4 8 0 + 9 ,3 0 4 F o r e ig n b a n k d e p o s i t s ........................................... O th e r d e p o s i t s ................................................................ 5 ,1 0 6 — 247 T o ta l d e p o s i t s ........................................................... 2 7 0 ,7 0 2 — 4 ,5 3 6 T o ta l r e s e r v e s ................................................................ 3 5 4 ,4 9 8 + 1 3 ,8 3 0 C o m m itm e n ts to m a k e in d u s tr i a l a d v a n c e s ....................................................................... 5 11 — 4 J u ly 1 9 ,1 9 3 9 + 59 — 19 — 535 — 1 6 ,3 9 7 — 1 6 ,8 9 4 + 1 6 ,2 4 0 + 4 3 ,3 7 4 — 3 6 ,5 8 7 + 1 5 ,7 1 4 — 2 ,0 2 1 + 2 0 ,4 8 1 + 5 3 ,7 7 3 + 3 7 1 2 B u s in e s s C o n d it io n s in t h e S ix t h D EBITS T O IN D IV ID U A L A C C O U N T S ( I n T h o u s a n d s o i D o lla r s ) ALABAMA— June M ay Jun e 1940 1940 1939 B ir m in g h a m ..................$ 9 2 ,0 1 2 $ 9 7 ,9 3 7 $ 8 0 ,7 9 8 D o th a n ............................... 2 ,2 2 9 3 ,0 3 9 2 ,6 8 5 M o b ile ............................... 4 1 ,3 3 3 4 4 ,3 0 0 3 4 ,2 2 0 M o n tg o m e r y .................. 1 9 ,6 7 1 2 5 ,1 3 7 2 0 ,9 8 3 FLO R ID A — J a c k s o n v ille .................. 7 3 ,1 0 8 8 6 ,5 3 5 7 4 ,2 9 8 5 0 ,3 7 0 5 7 ,3 1 8 4 0 ,6 9 8 M ia m i................................. P e n s a c o l a ....................... 9 ,3 9 3 1 0 ,2 9 1 8 ,7 5 8 T a m p a ............................... 2 9 ,2 7 2 3 3 ,5 1 3 2 6 ,7 6 2 G E O R G IA — A lb a n y ............................... 4 ,8 7 8 5 ,4 7 1 4 ,2 5 1 A tla n ta .......... .................... 2 1 0 ,4 0 4 2 3 8 ,8 2 0 2 0 2 ,0 5 6 A u g u s t a ............................ 1 7 ,5 1 4 1 9 ,5 5 7 1 7 ,9 4 2 2 ,8 9 6 3 ,2 3 5 2 ,4 2 2 B r u n s w ic k ....................... C o lu m b u s ....................... 1 5 ,5 2 1 1 9 ,4 0 1 1 3 ,8 7 9 E l b e r to n ............................ 1 ,1 3 5 1 ,2 9 5 1 ,0 0 4 M a c o n ............................... 1 4 ,7 1 3 1 6 ,9 3 3 1 4 ,7 1 4 N e w n a n ............................ 1 ,5 5 9 1 ,8 8 7 1 ,6 4 6 S a v a n n a h ....................... 2 8 ,8 6 2 3 1 ,3 5 7 2 7 ,3 3 5 V a ld o s ta .......................... 3 ,4 1 5 4 ,7 3 9 3 ,4 3 2 LO U ISIA N A — N e w O r l e a n s ................ 2 0 2 ,3 9 9 2 4 1 ,8 2 5 2 1 9 ,8 7 2 M IS S IS S IP P I— H a t t i e s b u r g .................. 4 ,6 4 8 5 ,1 4 8 4 ,4 1 7 2 5 ,4 8 6 3 0 ,3 2 1 2 2 ,5 4 7 J a c k s o n ............................ M e r id ia n .......................... 1 2 ,4 4 3 1 2 ,9 6 9 1 0 ,4 5 9 7 ,0 1 2 8 ,0 8 0 5 ,9 9 6 V ic k s b u r g ....................... TENNESSEE— C h a t t a n o o g a ................ 4 3 ,1 3 4 4 4 ,0 7 4 4 4 ,9 9 1 K n o x v ille ......................... 3 0 ,0 0 0 2 8 ,5 9 8 2 8 ,1 9 2 N a s h v ill e .......................... 8 1 ,6 7 1 8 6 ,2 8 7 8 0 ,4 2 1 S IX T H D I S T R I C T 2 6 C i t i e s .......................... 1 ,0 2 5 ,0 7 8 1 ,1 5 8 ,0 6 7 9 9 4 ,7 7 8 U N ITED STA TES— 2 7 4 C i t i e s ..........................$ 3 5 ,0 0 5 ,0 0 0 $ 3 7 ,2 5 7 ,0 0 0 $ 3 6 ,8 8 3 ,0 0 0 Per C ent C hang e June 1940 From : M ay 1940 June 1939 — 6.0 +13.9 -17.0 -26.7 - 6.7 +21.0 — 6.3 -21.7 -15.5 -12.1 - 8.7 -12.7 -10.8 -11.9 -10.4 -10.5 -20.0 -12.4 -13.1 -17.4 — 1.6 +23.8 + 7.3 + 9.4 + 14.7 + 4.1 — 2.4 + 19.6 + 11.8 + 13.0 — 0.0 - 8.0 -27.9 — 5.3 + 5.6 — 0.5 -16.3 — 7.9 — 9.7 — 15.9 — 4.1 — 13.2 + + + + 5.2 13.0 19.0 16.9 — 2.1 + 4.9 — 5.3 — 4.1 + 6.4 + 1.6 — 11.5 + 3.0 — 6.0 — 5.1 fo r June 5. T otal reserves, how ever, reached a new h igh lev el on J u ly 10, and F ederal R eserve notes o f this bank’s issu e in circu lation in creased in early J u ly to the h igh est lev el sin ce O ctober 1937. A t the b eg in n in g o f th e third quarter this bank’s p articip ation in the S ystem ’s h o ld in g s o f G overnm ent secu rities w as reduced n ea rly 15 m illio n s o f d o lla rs. D ep o sits o f fo reig n banks h ave recen tly increased. ► E xcess reserves o f a ll m em ber banks in the D istrict in the first h a lf o f June averaged 8 6 .3 m illio n s o f d o lla rs, a new record to ta l. R ecent estim ates in d ica te a d eclin e b y J u ly 17 to about 75 m illio n s. ►Check tran saction s in June at 2 6 reportin g cities in the D istrict d eclin ed 12 per cent, but w ere 3 p er cen t larger than a year earlier. A t 2 7 4 rep ortin g centers th ou gh ou t the country the June total w as dow n 6 per cent from M ay, and 5 per cent less than in June 19 3 9 . T ransit clea rin g s at the F ederal R eserve B ank o f A tlan ta and its branches d eclin ed 11 per cent in num ber o f item s and in total am ount from M ay, but w ere 13 per cent larger in num ber and 4 p er cent larger in am ount than a year ago. Agriculture Cash farm in com e in the six states o f th is D istrict in creased 21 per cent in M ay, after d eclin in g 13 per cent in A p ril. M ay in com e from crop and livestock m arketings w as up 4 4 per cent from A p r il, but Governm ent paym ents d eclin ed 37 per cent. T he JanuaryM ay total is sm a ller b y 4 p er cent than fo r that part o f la st year. ► S ixth D istrict farm ers have a p p aren tly plan ted a s lig h tly larger acreage in cotton this year than last. In L ou isian a there is an increase o f 3 per cent, in T en n essee 2 per cent and in G eorgia 0.3 per cent, in A lab am a and M ississip p i the acreage is the sam e as a year ago, and in F lo rid a it is 1.4 per cent sm aller. ► M ost parts o f the D istrict had excessive ra in fa ll in the first h a lf o f J u ly, and tem peratures have averaged b elow F ed er a l R eser v e D is t r ic t norm al. On the b asis o f J u ly 1 estim ates b y the U n ited States D epartm ent o f A g ricu ltu re it seem s that m ore w heat, corn, oats, rye, b arley, p otatoes and pears are in p rosp ect th is year than w ere produced last year, but less tob acco, h ay, sw eet potatoes, peaches, grapes, rice and su gar cane. T h e corn crop is exp ected to be 32 per cent larger in these six states than it w as in 1939, w heat increased 11 per cent and potatoes 3 per cent. T h e reduction in the peach crop o f 35 per cent results from decreases o f 8 0 per cent in T ennessee, 6 2 per cent in M ississip p i, 61 per cent in A lab am a and 5 per cent in G eorgia, offset in sm a ll part b y in creases in F lo rid a and L ou isian a. In F lo rid a , oran ges from the 193 9 b lo o m declin ed 18 per cen t and gra p efru it 33 per cent, from the season b efore as a resu lt o f the w inter freezes. ►W h o lesa le p rices o f farm products d eclin ed n ea rly 8 per cent betw een M ay 4 and June 2 2 , but recovered about 1.5 per cent in the tw o fo llo w in g w eeks. T h e ten-m arket average o f sp ot cotton p rices d eclin ed from 1 0 .6 8 cents per pound on June 14, the h ig h est sin ce M arch 8 , to 10.42 cents on J u ly 12. Industry In the first h a lf o f 194 0 the v a lu e o f construction contracts aw arded in the S ix th D istict w as 1 4 per cen t larger than in that part o f 193 9 and 8 0 per cent greater than tw o years ago, and b u ild in g perm its reported from tw enty cities in the D istrict w ere th e la rg est fo r that part o f an y recent year. Contract aw ards in June, alth ou gh dow n 11 per cent from M ay, w ere 4 per cent ab ove th e total fo r June la st year. A ccounting fo r 4 4 per cent o f the total, resid en tial contracts in the January-M ay p eriod w ere 2 4 per cent greater than in that part o f 1 9 3 9 and d o u b le th e cor resp on d in g total tw o years ago, and press reports in d icate a further g a in in June alth ou gh th e D istrict figu re is n ot yet a v a ila b le. B u ild in g p erm its d eclin ed 8 per cent in June com pared w ith M ay, w h ich had the la rg est m o n th ly total sin ce O ctober 1926, but w ere 4 3 p er cen t greater than a year ago, and the January-June total w as 4 0 per cent ab ove that a year a g o . ►Cotton te x tile m ills in A la b a m a , G eorgia and T en n essee consum ed 5 per cent less cotton in Ju n e than in M ay, on a d a ily average b asis, and ab ou t 2 2 p er cent less than the record January total. F or the current season , A u g u st through June, con su m p tion has been 16 p er cent greater than in that part o f the 1938 -3 9 season. ►S teel m ill a ctivity in the B irm in gh am area w as at 9 6 per cent o f ca p a city in the secon d and th ird w eeks o f J u ly, accord ing to T h e Iron A ge, after d ro p p in g from 9 2 p er cent in the latter h a lf o f June to 7 6 .5 per cent in th e h o lid a y w eek en d in g J u ly 6. T h e n a tio n a l rate d eclin ed from 8 8 per cent in the last w eek o f June to 75 per cent in the h o lid a y w eek and recovered to 8 7 .5 per cent in th e tw o fo llo w in g w eeks. T he d a ily rate o f pig iron prod u ction in A labam a d eclin ed about 4 per cent in June but w as 3 0 per cent ab ove that m onth la st year w hen there w as a sub stan tial rise over the m onth b efore. O utput in the January-June p eriod w as up 2 6 per cent from that part o f la st year and the largest fo r the p eriod in an y recent year. ►C oal p roduction in A lab am a and T en n essee continued in June at about the M ay lev el and about one-third greater than a year earlier. ► E lectric pow er prod u ction , on a d a ily average b asis, rose 3 per cent in M ay to about the record January le v e l. F or the country as a w h o le the M ay increase w as less than 1 per cent. B u s in e s s C o n d it io n s in t h e S ix t h F ed er a l STOCKS COLLECTan -T une T IO N 1 I n i ' J u n e 1940 R A TIO J u n e 1 9 40 C o m p a r e d C o m p a r e d w ith : w ith C o m p a re d w i t h : Y e a r A g o J u n e 1 9 39 J u n e 1 9 4 0 R E T A IL TR A D E 1940 June 1939 2 4 .8 8.2 + 6 .9 A tla n ta ....................................— 2 1 .5 + 0 .9 3 2 .0 — 0.8 + 5 .9 + 1.1 B ir m in g h a m ....................... — 1 3 .6 + 3 .1 M a c o n .................................... — 1 7 .7 — 3 .1 + 9 .7 + 9 .4 M o n tg o m e r y ...................... — 2 6 .4 — 2 .4 2 7 .8 + 6 .5 + 0.2 N a s h v ille ...............................— 2 6 .5 — 3 .7 2 9 .5 + 7 .8 + 6 .5 — 2.2 N e w O r l e a n s ..................... — 1 3 .7 3 2 .5 + 3 .0 + 1 0 .3 O t h e r s .................................... — 2 2 .7 + 3 .7 2 8 .9 + 4 .9 + 7 .4 D IST R IC T ( 4 7 F i r m s ) . — 1 9 .6 + 0 .6 SA LES — 6.1 + 1 6 .0 7 9 .1 3 5 .7 4 5 .2 6 7 .0 2 2 .3 3 7 .2 + 1 4 .7 + 5 .4 + 9 .9 5 7 .9 + + + 7 .2 4-3.1 — 1 8 .3 +4.3 — 1 6 .4 + 3 .0 — 2. 0 — 1.2 7 .2 8 .3 + 11.2 + 3 .5 + 6 .4 — 1 3 .2 + 2 2 .7 +2.9 — 4 .2 (0 0 0 O M IT TED ) C O M M E R C IA L FA ILU RES— june M ay D IS T R IC T ......................................... 1940 19 40 N u m b e r ( a c t u a l ) .......................... 48 55 l i a b i l i t i e s ........................................... $ 555 $ 462 $ C O N T R A C T S A W A RDED — D IS T R IC T ...................................... , .$ 27,799 R e s id e n tia l.................................... A ll O t h e r s ...................................... 3 ,5 1 0 A la b a m a ......................................... 1 0 ,5 3 0 F lo r id a .............................................. G e o r g i a .............................................. 4 ,1 9 8 L o u i s i a n a ........................................... 8 ,9 4 8 M is s is s ip p i...................................... 1 ,1 1 2 T en n essee. 3 ,5 3 3 $ 3 1 ,2 9 7 1 5 ,5 7 0 1 5 ,7 2 7 4 ,2 2 5 1 0 ,9 1 8 9 ,2 1 4 2 ,5 2 0 3 ,3 0 0 4 ,6 1 5 $ 2 6 ,7 2 8 1 0 ,7 4 6 1 5 ,9 8 2 4 ,2 9 5 7 ,7 8 1 6 ,6 0 8 4 ,9 2 8 2 ,1 6 2 5 ,7 4 5 $ 1 6 6 ,0 5 1 1 9 ,5 3 6 5 6 ,2 1 2 3 7 ,7 6 2 3 2 ,4 2 1 1 5 ,7 2 7 2 8 ,5 2 7 $ 1 4 6 ,1 6 8 5 9 ,4 8 3 8 6 ,6 8 5 2 1 ,0 6 7 4 2 ,4 2 9 3 1 ,5 4 3 3 5 ,4 7 8 1 9 ,1 9 6 2 4 ,3 1 6 B U IL D IN G PERM ITS— 2 0 C IT IE S ........................................... $ A tla n ta ................................................ B ir m in g h a m .................................... J a c k s o n v ille .................................... N a s h v ill e ........................................... N e w O r l e a n s ................................. 15 O th e r C i t i e s .............................. 1 3 ,9 3 2 2 ,4 6 8 1 ,5 9 0 1 ,6 1 2 1 ,7 6 6 640 5 ,8 5 7 $ 1 5 ,1 7 4 3 ,7 1 7 2 ,3 6 6 624 294 428 7 ,7 4 6 9 ,7 6 2 592 286 773 564 627 6 ,9 2 0 $ 5 4 ,8 3 8 8 ,3 4 1 5 ,1 5 6 4 ,6 1 2 3 ,6 9 9 2 ,9 7 9 3 0 ,0 5 0 3 9 ,0 5 9 2 ,5 2 0 1 ,7 5 7 3 ,8 7 3 2 ,4 4 1 2 ,9 2 9 2 5 ,5 3 9 265 285 205 1 ,6 3 3 1 ,3 0 1 P IG IR O N P R O D U C T IO N — T o n s A la b a m a ............................................. C O A L P R O D U C T IO N —T o n s A la b a m a ........................................... T e n n e s s e e ...................................... 1 ,3 4 4 513 June 1 9 39 38 482 $ J a n .-J u n e , In c l. 1 9 39 1940 364 350 3 ,6 3 2 $ 4 ,3 1 3 4 ,9 2 5 2 ,1 6 5 960r 377 (0 0 0 O M IT TED ) J u n e A u g . 1 - J u n e 3 0 ,ln c l. 1 3 3 9 -4 0 1 9 3 8 -3 9 1 9 39 670 61 789 1 ,2 5 4 1 ,4 5 1 1 16 160 15 173 2 ,0 8 4 193 2 ,4 1 3 C O T T O N C O N S U M P T IO N — B a le s A la b a m a .............................................. G e o r g i a .............................................. T e n n e s s e e ......................................... TO TA L THREE S T A T E S .. June 1 9 40 62 110 15 18 7 M ay 1 9 40 65 130 17 212 C O T T O N S E E D C R U SH ED — T o n s * ...................................................... 18 41 55 1 ,4 5 8 1 ,5 3 4 FERTILIZER T A G SA LES— T o n s 204 63 T O TA L S IX S T A T E S ................ * G e o r g ia , A la b a m a , L o u is ia n a a n d M is s is s ip p i. 35 2 ,5 1 0 2 ,3 8 6 (0 0 0 O M IT TED ) A p ril J a n . 1-M ay 3 1 , In c l. M ay M ay 1940 1940 1 9 39 1940 1939 FA R M IN C O M E **— 6 S t a t e s . . $ 6 3 ,0 3 0 $ 5 2 ,3 2 7 $ 5 5 ,9 3 4 $ 2 7 7 ,7 7 1 $ 2 8 9 ,3 3 8 7 ,9 1 7 3 6 ,7 2 3 A la b a m a .............................................. 6 ,9 4 4 9 ,7 5 3 3 7 ,5 7 3 2 4 ,1 1 4 1 3 ,3 9 8 6 5 ,8 2 4 7 7 ,3 2 5 1 4 ,2 8 9 F lo r id a ................................................. 6 ,9 6 6 7 ,4 8 9 3 7 ,5 9 1 3 8 ,3 9 6 G e o r g i a .............................................. 7 ,0 7 2 9 ,2 6 1 8 ,9 2 6 9 ,8 3 6 3 8 ,9 5 0 L o u i s i a n a ............................................ 3 9 ,7 9 2 5 ,7 0 5 5 ,6 6 5 4 8 ,1 9 3 5 ,8 8 9 4 5 ,8 6 2 M is s s is s ip p i.................................... T e n n e s s e e ......................................... 9 ,0 6 7 9 ,3 1 9 4 9 ,7 5 1 9 ,6 8 1 5 1 ,1 2 9 E L EC TR IC P O W E R PR O D U C T IO N — k w h o u r s A la b a m a .............................................. 4 2 6 ,6 7 5 4 1 2 ,8 1 6 3 0 1 ,7 5 9 2 ,0 6 8 ,3 9 8 1 ,4 1 2 ,6 1 1 F lo r id a ................................................. 1 0 6 ,2 5 8 1 0 2 ,5 3 3 8 7 ,1 8 1 5 6 7 ,2 2 5 4 6 5 ,7 3 9 G e o r g i a .............................................. 1 2 1 ,6 6 8 1 3 0 ,5 8 5 1 5 1 ,7 6 7 6 4 3 ,4 2 2 7 0 3 ,5 2 6 L o u i s i a n a ........................................... 1 6 4 ,4 2 9 1 5 2 ,0 6 8 1 5 5 ,6 3 5 8 0 2 ,2 5 4 6 9 6 ,9 3 2 M is s is s ip p i........................................ 5 ,1 6 0 4 ,0 4 9 4 ,6 9 6 2 2 ,6 9 6 2 3 ,4 9 6 T e n n e s s e e ......................................... 1 9 7 ,2 4 3 1 5 4 ,8 0 8 1 4 8 ,2 7 7 8 3 5 ,2 5 7 8 1 6 ,9 5 9 TO TA L SIX S T A T E S ............1 ,0 2 1 ,4 3 3 9 5 6 ,8 5 9 8 4 9 ,3 1 5 4 ,9 3 9 ,2 5 2 4 ,1 1 9 ,2 6 3 B y W a te r P o w e r .................... 5 3 5 ,6 6 9 6 2 8 ,3 2 6 5 2 5 ,6 2 8 2 ,7 3 2 ,2 5 0 2 ,5 5 2 ,7 1 4 B y F u e l s ......................................... 4 8 5 ,7 6 4 3 2 8 ,5 3 3 3 2 3 ,6 8 7 2 ,2 0 7 ,0 0 2 1 ,5 6 6 ,5 4 9 *Not yet available. **Incltfdes Government benefit payments, r = revised. 3 D is t r ic t SIX T H D IST R IC T B U SIN E S S IN D E X E S SIX TH D IST R IC T B U SIN E S S S TA TISTIC S W H O LESA LE TRAD E G r o c e r i e s ............................. — 9 .0 D ry G o o d s .......................... — 2 8 .1 H a r d w a r e ............................ — 1 .2 D r u g s .......................................— 1 6 .0 S h o e s ...................................... — 1 6 .5 A u to S u p p l i e s ..................— 1 1 .5 T o b a c c o a n d I ts P r o d u c t s .......................... + 1 .0 T O T A L ...............................— 8 .3 R eser v e (1 9 2 3 * 1 9 2 5 = 1 0 0 e x c e p t a s n o te d ) RETAIL SALES*— U n a d ju s te d Ju n e 1940 M ay 1 9 4 0 1 2 7 .9 r D IST R IC T (2 5 F i r m s ) ............................................................. 111122.6.6 2 3 3 .4 A tla n ta .............................................................................................. 1 19 95 5.3.3 9 .4 B irm in g h a m ....................................................................................11009.4 1 1 5 .2 1 2 2 .2 N a s h v ille ......................................................................................... 9 7 .0 1 0 1 .l r 4 .2 N e w O r e l a n s .................................................................................9 49 .2 J u n e 1 9 39 1 0 7 .5 1 8 3 .2 1 0 3 .1 9 6 .8 9 2 .6 RETAIL SALES*— A d ju s te d 1 2 6 .6 r 2 2 2 .3 1 1 4.1 1 1 0 .1 1 0 4 .2 r 1 1 9 .4 2 1 0 .6 1 1 0 .9 1 0 5 .2 1 0 4 .0 RETAIL STO C K S— U n a d ju s te d DISTR IC T (23 F i r m s ) ............................................................. , 669.0 9 .0 A tla n ta ..............................................................................................123.5 . . 1 2 3.5 B irm in g h a m ................................................................................... . . . 665.4 5 .4 N a s h v ille ......................................................................................... . . 51.5 5 1 .5 N e w O r l e a n s ............................................................................... . . 59.0 5 9 .0 7 7 .1 1 3 8 .6 7 4 .2 5 7 .9 6 5 .8 6 5 .1 1 1 3 .3 6 4 .9 4 9 .4 5 4 .7 RETAIL STO C K S— A d ju s te d .. 772.6 2 .6 D ISTR IC T (23 F i r m s ) ............................................................. A tla n ta ..............................................................................................128.6 ., 1 2 8 .6 B irm in g h a m ................................................................................... . . . 666.1 6 .1 N a s h v ille ......................................................................................... 53.1 5 3 .1 N e w O r l e a n s ............................................................................... 62. 6 2 .8 7 5 .6 1 3 7 .2 7 2 .7 5 7 .3 6 5 .1 6 8 .5 1 1 8 .0 6 5 .6 5 0 .9 5 8 .2 W H O LESA LE SALES— T o ta l............................... . 6 1 .0 G r o c e r ie s .........................................................................................50.4 , 5 0 .4 D ry G o o d s ...................................................................................... , 336.4 6 .4 H a r d w a r e .........................................................................................102.2 . .. 1 0 2 . 2 . 991.7 1 .7 D r u g s ................................................................................................. 6 6 .5 5 5 .4 5 0 .6 1 0 3.4 1 0 9 .2 6 4 .1 5 0 .4 4 6 .4 8 9 .9 9 2 .0 7 9 .2 C O N T R A C T S A W A RDED — D IS T R IC T ......................... . 79.2 R e s id e n tia l.................................................................. A ll O t h e r s ..................................................................... A la b a m a ........................................................................................... , 76.8 7 6 .8 F lo r id a .............................................................................................. . . 72.6 7 2 .6 G e o r g i a .......................................................................... . 6 3 .0 L o u is ia n a .........................................................................................142.3 .1 4 2 .3 . . 557.7 7 .7 M is s is s ip p i.................................................................................... T e n n e s s e e ............... .............................................. .. 6 3 .7 8 9 .2 1 1 1 .0 7 4 .7 9 2 .4 7 5 .3 1 3 8 .2 4 0 .1 1 7 1.1 8 3 .2 7 6 .2 7 8 .6 7 5 .9 9 3 .9 5 3 .6 9 9 .1 7 8 .4 1 1 2.1 1 0 3 .6 ..1 2 3 .8 B U ILD IN G PERM ITS—20 C i t i e s .........................................123.8 A tla n ta .............................................................................................. 159.5 B irm in g h a m ................................................................................. 107.2 J a c k s o n v ille ....................................................................................195.9 N a s h v ille ......................................................................................... 278.3 N e w O r l e a n s .................................................................................49.7 15 O th e r C it ie s ............................................................................ 106.9 1 3 4 .9 2 4 0 .3 1 5 9 .6 7 5 .9 4 6 .3 3 3 .2 1 4 1 .4 8 6 .8 3 8 .3 1 9 .3 9 3 .9 8 8 .9 4 8 .7 1 2 6 .3 P IG IR O N P R O D U C T IO N —ALABAM A* . 1 1 5 .8 1 2 0 .3 C O T T O N C O N S U M P T IO N — 3 S T A T E S *.................... 1 5 7 .7 A la b a m a ............................................................................................1 8 4 .6 G e o r g i a ............................................................................................14 6.1 T e n n e s s e e ...................................................................................... 1 5 5 .7 1 6 6 .0 1 8 1 .2 1 5 9 .7 1 6 1 .9 1 5 6 .4 1 7 7 .2 1 4 7 .8 1 5 1 .0 A la b a m a ........................................................................................... ..113322.3 .3 F l o r i d a .............................................................................................. . . 8 9 .1 G e o r g i a .......................................................................... . . 1 3 9 .3 L o u i s i a n a ......................................................................................... . .111199.5 .5 M is s is s ip p i.................................................................................... . . 9 8 .0 T e n n e s s e e ...................................................................................... ..112299.1 .1 SIX ST A T E S ............................................................................ . . 1 2 5 .9 1 3 3 .9 9 4 .2 1 4 1 .7 1 2 1 .9 1 0 2 .8 1 3 0 .9 1 2 8 .5 1 2 5 .8 1 0 1 .7 1 3 7 .5 1 2 6 .4 1 0 0 .2 1 2 9 .0 1 2 6 .8 PAYROLLS (A v . io r 1 9 3 2 — 1 0 0 ) A la b a m a ........................................................................................... 2 2 5 .0 ,. .2 F lo r id a .............................................................................................. . . 8 7 .3 G e o r g i a ............................................................................................1 9 2 .3 L o u i s i a n a .........................................................................................1 . .1 4 7 .4 M is s is s ip p i....................................................................................1 . . 1 3 0 .0 T e n n e s s e e ...................................................................................... . .116644.0 SIX S T A T E S ............................................................................ . . 117722..8 8 2 2 2 .6 8 9 .7 1 9 6 .4 1 4 9 .8 1 3 5 .3 1 6 8 .2 1 7 5 .6 1 8 6 .9 8 4 .8 1 7 7 .2 1 4 6 .6 1 2 4 .2 1 6 3 .0 1 6 3 .6 N a s h v ille . ..1 2 5 .1 . . 2 2 4 .5 . .. 1 1 7 . 6 . . 1 0 5 .4 . . 1 0 5 .8 8 9 .4 r EMPLOYMENT (A v . fo r 1 9 3 2 = 1 0 0 ) ELEC TR IC P O W E R PR O D U C T IO N * M ay 1940 A la b a m a ........................................................................................... 5 3 4 .1 F lo r id a ..............................................................................................5 2 2 .6 G e o r g i a ........................................................................................... 2 0 2 .5 L o u i s i a n a .........................................................................................6 1 7 .5 M is s is s ip p i...................................................................................... 7 9 .4 T e n n e s s e e ...................................................................................... 3 1 4 .4 SIX S T A T E S ............................................................................ 3 9 8 .8 B y W a te r P o w e r .................................................................. 3 9 7 .9 B y F u e l s ...................................................................................... 3 9 9 .7 A p ril 1 9 40 5 3 4 .0 5 2 1 .0 2 2 4 .6 5 9 0 .1 6 4 .6 2 5 4 .9 3 8 6 .0 4 8 2 .2 2 7 9 .4 M a y 1939 3 7 7 .7 4 2 8 .7 2 5 2 .6 5 8 4 .4 7 2 .2 2 3 6 .3 3 3 1 .6 3 9 0 .4 2 6 6 .4 *Indexes of retail sales, electric power and pig iron production, and of cotton consumption are on a daily average basis, r = revised. B u s in e s s 4 C o n d it io n s in t h e S ix t h F ed er a l R eser v e D is t r ic t INDUSTRIAL PRODUCTION N A T IO N A L SU M M A R Y O F B U S IN E S S C O N D IT IO N S P r e p a r e d b y th e B o a r d of G o v e r n o r s of th e F e d e r a l R e s e r v e S y s te m V OLUME of industrial production increased rapidly during June and rose somewhat further in the first half of July. Distribution of commodities through retail and wholesale markets and by rail continued active. P r o d u c tio n The Board’s seasonally adjusted index of industrial production advanced from 106 in May to 114 in June. In that month, as in May, increases in activity were most marked in the iron and steel and textile industries where declines earlier in the year had been greatest. Steel ingot production rose from 60 per cent of capacity at the beginning of May to 87 per cent in the latter part of June and was maintained at about that level in the first three weeks of July. Production of coke and pig iron showed similar sharp increases and iron ore shipments down the Lakes were at near-capacity levels. Demand for steel was general as most domestic steel-consuming industries were operating at high rates. Exports of steel, which had declined in April, rose to earlier high levels in May and June, amounting to about 10 per cent of steel-producing capacity. Automobile production, which had begun to decline in May, continued to decrease in June and the first half of July reflecting in large part seasonal influences. Retail sales of automobiles were in large volume and dealers’ stocks of new and used cars declined from the high levels prevailing earlier. In the textile industry there was a further sharp advance in activity at woolen mills, and at cotton mills output was reduced less than seasonally. Rayon production was maintained at earlier high levels while at silk mills activity remained near the unus ually low rate reached in May. Coal production continued in large volume during June, but output of crude petroleum declined in the latter part of the month, owing to reduced production in Texas fields. Value of construction contract awards showed little change from May to June, according to F. W. Dodge Corporation figures for 37 eastern States. Awards for private residential building decreased more than seasonally, following a sharp rise in May, and contracts for private non-residential building also declined. Contracts for public construction increased further in June, owing in part to expansion in the construction of Army and Navy air bases. D is tr ib u tio n Department store sales in June were maintained at the May level, although usually there is a considerable decline, and the Board’s seasonally adjusted index advanced to 93 as compared with 87 in May and a level of about 89 earlier in the year. Sales at variety stores showed little change from May to June, continuing at the advanced level that has prevailed since the beginning of the year. In the early part of July department store sales declined seasonally from the June level. Freight-car loadings increased further in June. Shipments of coal and miscellaneous merchandise continued to expand and loadings of coke, which usually decline at this season, showed a substantial rise. I n d e x of p h y s ic a l v o lu m e of p r o d u c t io n , a d j u s t e d fo r s e a s o n a l v a r ia tio n , 1 9 2 3 - 1 9 2 5 a v e r a g e = 1 0 0 . B y m o n th s# J a n u a r y / 1 9 3 4 , to J u n e , 1 9 4 0 . DEPAFtTMENT STORE SALES AND STOCKS I n d e x e s o f vallu e o f s a l e s a n d s to c k s , a d j u s t e d fo r s e a s o n a l v a r ia tio n , 1 9 2 3 - 1 9 2 5 a v e r a g e = 1 0 0 . B y m o n th s , J a n u a r y , 1 9 3 4 , to J u n e , 1 9 4 0 . WHOLESALE PRICES OF BASIC COMMODITIES C o m m o d ity P r ic e s Prices of a number of industrial materials, particularly steel scrap, copper, rubber, and silk, declined from the middle of June to the middle of July. Wheat prices also showed decreases in this period, while prices of livestock and products advanced owing partly to seasonal influences. A g r ic u ltu r e Production of major crops this season, according to the July 1 report of the Depart ment of Agriculture, may be slightly lower than last season. Tobacco production will be sharply reduced from last year, when the crop was unusually large. Domestic supplies of wheat and other field crops as well as of vegetables and fruit are expected to show little change from last season. Indicated hog production this year will be about 10 per cent smaller than last year. F e d e r a l R e s e r v e g r o u p i n g s o f B u r e a u o f L a b o r S ta tis tic s ' d a t a . T h u r s d a y f ig u r e s , J a n u a r y 4 , 1 9 3 4 , to J u ly 1 1 , 1 9 4 0 . B a n k C r e d it Total loans and investments at reporting member banks in 101 leading cities increased during the five weeks ending July 10, chiefly as a result of increases in holdings of short-term United States Government obligations and in commercial loans. Holdings of United States Government bonds and loans to security brokers and dealers declined. The monetary gold stock increased by $885,000,000 in this five-week period, the largest gold acquisition for any corresponding period on record. This inflow of gold was reflected in a growth of $310,000,000 in foreign bank balances with the Federal Reserve Banks and in increased deposits and reserves of member banks. On July 10, excess reserves of member banks amounted to $6,833,000,000. G o v e r n m e n t S e c u r ity M a r k e t Prices of Government securities, which had advanced sharply in June, showed further increases after July 8 when the Treasury announced a new bond issue for cash subscription. Between June 10 and July 15 the price of the 1960-65 bonds rose about 3 points, and the yield on this issue declined from 2.52 per cent to 2.34 per cent as compared with 2.26 per cent at the year’s peak in prices on April 2. MONEY RATES IN NEW YORK CITY PER CENT_________________ - • • V LV x 1 _______________________________ PEW CENT TREASlJRY BONDS ( 8 VtAIIS AND OVER) r * "V aI L RESERVE BANK V \ L . DISCOUNT RATE . AT* K h I AAv (5-a i y e a h s ) TREA!SURV ‘ BILL! U 1934 vA J — -A _ 035 |936 1937 ,1938 1939 1940 F o r w e e k s e n d in g J a n u a r y 6, 1934, to J u ly 13, 1940.
@FedFRASER