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A tlanta F eder A t la n t a , G e o r g ia , J u ly 3 1 ,1 9 4 1 V o lu m e X X V I R e c o n n a is s a n c e T h e d e f e n s e P ro g ra m PER CENT DECREASE >y PER CENT INCREASE D is c u s s io n s o f d e fe n s e a c t iv it ie s in D is t r ic t R e t a ilf ce W h o le s e C o n tra c ts h ave a p p e a re d b e fo r e . P ig I r o n P j H o w e v e r, R e v ie w t h is s in c e th e la s t Pay: th a t h ave s o p e r a t in g in |r D em and D ep been 20 p a r t ly D is t r ic t — th a t lie le t ite m s e p ro g ra m th e S ix t h D is t r ic t . in t h is s e c tio n of been a w a rd e d t h is D is t r ic t b y to 1940, th ro u g h M ay 31, 1941. The th e be p ro d u c e d s ta te ly in g o f $ 5 0 ,0 0 0 N avy D e p a rtm e n ts in th e d e fe n s e p r o g r a m lio n . I n c o n t r a c ts IN THE a w a rd s is a m o u n te d 4 .1 as to a w h o le $ 1 1 .2 D is t r ic t ’ s s h a r e p e r c e n t. I n D is t r ic t d e p a rtm e n t s to r e AWARDED BY WAR AND s a le s d e c lin e d s lig h t ly m o re th a n s e a s o n a l ly b u t w e re , n e v e r t h e le s s , a t th e h ig h e s t le v e l e v e r re c o r d e d an d w h o le s a le t ra d e f o r t h a t m o n th , d e c lin e d b y a b o u t h a lf th e a m o u n t it u s u a lly d o e s in J u n e ; li f e in s u r a n c e s a le s in c r e a s e d , a n d b u s i n e s s f a ilu r e s w e re lo w e r . I n d u s t r ia l a c t iv it y w a s m a in ta in e d at a h ig h le v e l. C o a l o u tp u t in c re a s e d s u b s t a n t ia lly , a n d t e x t ile o p e ra tio n s w e re at a new h ig h p e a k , b u t p ig ir o n p r o d u c tio n w a s s lig h t ly o f f , a n d c o n s tr u c t io n c o n t r a c t a w a rd s d e c lin e d s o m e w h a t in c o m p a ris o n w it h th e la r g e t o t a ls o f A p r il a n d M a y . ► D e p a rtm e n t s to r e s a le s in t h is D is t r ic t w e re 1 6 p e r c e n t le s s in Ju n e th a n in M a y , o n a d a ily a v e r a g e b a s is , b u t a f t e r a llo w a n c e f o r s e a s o n a l in flu e n c e s th e d e c lin e w a s 3 p e r c e n t. T h e a d ju s t e d in d e x f o r J u n e , a t 1 3 4 p e r c e n t o f th e 1 9 3 5 1939 Ju n e a v e ra g e , c o m p a re s la s t y e a r , a n d is 115 fo r h ig h e r th a n w it h fo r J u n e o f a n y o th e r y e a r . T h e la r g e r g a in s c o m p a re d w it h J u n e 1 9 4 0 w e re in h o u s e h o ld w h ite a p p lia n c e s , g o o d s. In th e f u r n it u r e , fu rs , and f ir s t h a lf o f 1 9 4 1 A = C O N ST R U C T IO N B — ORDNANCE C = S H IP S D = T E X T IL E S E = M IS C E L L A N E O U S d e p a rtm e n t s to r e s a le s h a v e b e e n 1 6 p e r c e n t g r e a te r th a n in th a t p a rt o f 1 9 4 0 . J u n e in v e n t o r ie s w e re d o w n 5 p e r c e n t fr o m M a y , b u t w e re 1 6 p e r c e n t g re a te r th a n a y e a r a g o . F o r th e U n it e d S t a t e s , C on tin u ed on p a g e 36 SCALE: H = $20 MILLION NAVY o f to ta l th e D is t r ic t FEDERAL CONTRACTS RESERVE D IS T R IC T o f B u s in e s s C o n d itio n s J u n e S ix t h th e s e b i l l i o n ;1 t o t a l, c o n s tr u c t io n a c t iv it ie s a c c o u n t f o r DEFENSE S IX T H o ver th e f ir s t y e a r o f C on tin u ed on p age 36 M AJO R and to ta le d $ 4 6 0 .7 m il th e c o u n t r y th u s th e S ix t h 30 d i s t r i c t S u m m a ry in w it h in a w a rd e d in t h is D is t r ic t b y th e W a r a n d th e a n d N a v y D e p a rtm e n ts d u r in g th e to th e Sixth District Statistics lor June 1941 compared with June 1940 In p a r t ly o u ts id e o f th e S ix t h L o u is ia n a , M is s is s ip p i, a n d th e d a ta a r e p re s e n te d b y s t a t e s , b u t in 20 and d is t r ic t s ta te s r e q u ir e a c o m p le te r s t y e a r o f th e d e fe n s e p r o g r a m , J u n e 1, th o s e ► T o t a l c o n tr a c t s o ver anjHlQiMl i i n t s w it h in of c o n t r a c ts f o r m o re c o n t r a c ts h a v e p ic t u r e s th e d e fe n s e c o n tr a c ts o f $ 5 0 ,0 0 0 Bank t h e S ix t h m any T h e c h a r t o n th e b o tto m o f t h is p a g e Em pl in ca se s T e n n e s s e e — th e re a r e in c lu d e d o n ly th e a re a . C oal P r 30 in th e ih a r t ic le a p p e a re d in N o v e m b e r 1 9 4 0 , C o tto n C o : B ank Lo ans N um ber 7 DEPARTMENTS JU N E 1. 1940 - MAY 31 194) 36 M o n t h l y R e v ie w o f th e f e d e r a l R e s e rv e B a n k o f A t la n t a f o r J u l y 1941 D is t r ic t S u m m a ry o f B u s in e s s C o n d itio n s D e f e n s e P ro g ra m C o n tin u e d fr o m p a g e 35 in t h e S ix t h D is t r ic t C o n tin u e d fr o m p a g e 35 th e B o a r d ’ s a d ju s te d in d e x o f s a le s w a s a ls o o ff 3 p e r c e n t $ 2 3 4 .8 m illio n , o r 5 1 .0 p e r c e n t . O r d e r s f o r s h ip s h o ld s e c o n d fr o m M a y , b u t w a s 1 2 p e r c e n t a b o v e 't h a t f o r J u n e la s t y e a r . p la c e , a m o u n tin g to $ 1 4 6 .4 m illio n — 3 1 .8 p e r c e n t— th ro u g h W h o le s a le tr a d e in M a y 3 1 , 1 9 4 1 . S u r p r is in g ly e n o u g h , th e p r o d u c tio n th e D is t r ic t d e c lin e d 3 p e r c e n t in Ju n e n a n c e c a lle d f a ilu r e s , b o th in n u m b e r a n d lia b il it i e s , d e c lin e d in J u n e , a n d t e x t ile w e re s u b s t a n t ia lly le s s th a n in J u n e la s t y e a r . I n th e f ir s t h a lf to $ 3 0 .4 m illio n o f 1 9 4 1 th e n u m b e r o f f a ilu r e s in th e D is t r ic t h a s b e e n s m a ll d u r in g e r b y 2 8 p e r c e n t, a n d lia b ilit ie s h a v e b e e n le s s b y 2 5 p e r c e n t, c o n tr a c ts a m o u n te d to $ 3 9 .8 m illio n . T h e s e a w a r d s r e p re s e n t th a n in t h a t p a r t o f 1 9 4 0 . 6 .6 a n d 8 .6 p e r c e n t o f t o t a l c o n t r a c t s , r e s p e c t iv e ly . M a y , r e s id e n t ia l c o n c o n tra c t th e s u c h c o n t r a c t s is n e a r ly a s g re a t a s t o t a l a w a rd s . C o n tra c ts fo r o rd n a n c e w e re a w a rd e d to f ir m s in f ir s t y e a r o f th e d e fe n s e a m o u n tin g th e S ix t h o r in th o s e p o r t io n s o f L o u is ia n a and in t e x t ile F lo r id a M is s is s ip p i t h a t lie t r a c t s d e c lin e d 9 p e r c e n t, a n d o th e r a w a rd s 2 2 p e r c e n t. T h e w it h in Ju n e e v e r y s ta te in th e D is t r ic t e x c e p t F lo r id a , a lth o u g h th e a w a rd s t o t a l w a s , h o w e v e r, 3 4 p e r c e n t g re a t e r th a n th a t f o r th e D is t r ic t . T e x t ile D is t r ic t p r o g r a m , w h ile N o c o n t r a c t s f o r o rd n a n c e h a v e b e e n a w a rd e d ► T h e v a lu e o f c o n s t r u c t io n c o n tr a c t s a w a rd e d in th e D is t r ic t d u r in g J u n e w a s d o w n 1 7 p e r c e n t fr o m f o r in o f o rd b u t w a s 3 6 p e r c e n t g r e a t e r th a n it w a s a y e a r e a r lie r . B u s in e s s Ju n e la s t y e a r a n d , w h ile a w a rd s f o r r e s id e n t ia l c o n s t r u c t io n in w e re s m a lle r b y 1 9 p e r c e n t, c o n t r a c t s f o r o th e r c o n s tr u c t io n s ta te s h a v e w e re m o re th a n d o u b le th e J u n e 1 9 4 0 fig u r e . In th e f ir s t h a lf o f 1941 c o n t r a c t s a g g re g a tin g m o re th a n $ 2 2 3 m illio n b e e n a w a rd e d f o r c o n s t r u c t io n in h ave t h is D is t r ic t . T h is t o t a l is la r g e r b y o n e - th ird th a n th e t o t a l f o r th e c o rr e s p o n d in g p a r t re c e iv e d The f ir s t fo u r c la s s if ic a t io n s c o n tr a c ts ► W h ile c o n t r a c t s th a n a y e a r ag o , and o th e r d e fe n s e c o n tra c ts — c o n p e r cen t $ 9 .3 m illio n , in c lu d e a w a rd e d by o rd e rs th e fo r W ar m any and d if fe r e n t N avy D e p a rt m e n ts in it ia t e th e b u lk o f d e fe n s e e x p e n d it u r e s in th e D is t r ic t , a n u m b e r o f f e d e r a l a g e n c ie s h a v e a llo t t e d a n d a r e s p e n d in g w o r k s , a n d p u b lic u t ilit ie s , w e re 6 3 p e r c e n t g r e a t e r . J u n e b ro u g h t a n o th e r n e w h ig h le v e l in of o f t o t a l c o n t r a c t s in th e D is t r ic t . T h e r e m a in in g 2 .0 p e r c e n t, t o t a lin g th o s e f o r n o n - r e s id e n t ia l b u ild in g , p u b lic f o r s h ip s , c o n s t r u c t io n , s t r u c t io n , o r d n a n c e , s h ip s , a n d t e x t ile s — c o v e r 9 8 .0 k in d s o f it e m s . 1 p e r c e n t le s s so m e c o n t r a c t s a n d m is c e lla n e o u s it e m s . a n y o th e r re c e n t y e a r . F o r th e s ix m o n th s p e r io d , r e s id e n t ia l w e re in L o u is ia n a a n d M is s is s ip p i a r e u n im p o r t a n t , w h ile a l l s ix o f la s t y e a r a n d is a ls o m u c h la r g e r th a n f o r th e s a m e p a r t o f a w a r d s , in c lu d in g c o n t r a c t s h a v e b e e n a w a rd e d th e r a t e o f t e x t ile la r g e a m o u n ts o f m o n e y in th e s ix s ta te s t h a t lie e it h e r w h o lly a c t iv it y in t h is D is t r ic t . A lt h o u g h th e n u m b e r o f b a le s o f c o t o r p a r t ly to n c o n s u m e d in th e lo n g e r p h a s e s o f th e d e fe n s e p r o g r a m . T h e U n it e d S ta te s M a r it im e m o n th o f M a y , th e d a ily r a t e w a s h ig h e r th a n it h a s e v e r b e e n C o m m is s io n u n d e r it s e m e rg e n c y s h ip p r o g r a m a llo t t e d $ 6 3 .2 J u n e w a s d o w n c o m p a re d w it h w it h in D is t r ic t c a r r y in g o th e r m illio n m ills in A la b a m a , G e o r g ia , a n d T e n n e s s e e , a n in c r e a s e o f 2 4 P la n t C o r p o r a t io n p e r c e n t o v e r t h a t p a r t o f th e p r e v io u s s e a s o n . I n th e U n it e d f o r th e e x p a n s io n o f p la n t f a c ilit ie s in t h is r e g io n a n d a c o n S ta te s a s a w h o le , c o tto n t e x t ile o p e r a tio n s w e re d o w n 2 p e r s id e r a b le c e n t fr o m M a y b u t w e re 4 8 p e r c e n t g r e a t e r th a n in J u n e 1 9 4 0 . h o u s in g p r o je c t s in th e B irm in g h a m - G a d s d e n a re a a v e r A g e , a s lig h t d e c lin e fr o m 9 7 .4 p e r c e n t f o r M a y b u t w e ll a b o v e th e a v e r a g e o f 8 7 p e r c e n t f o r J u n e la s t y e a r . In th e o f m e rc h a n t v e s s e ls in Ju n e c e r t a in c o n s t r u c t io n in 1 , 1940, and on J u n e , n e a r ly 3 m illio n b a le s o f c o tto n h a v e b e e n c o n s u m e d b y S t e e l m ill a c t iv it y J u ly in in a n y p r e v io u s m o n th . I n th e c u r r e n t s e a s o n , A u g u s t th ro u g h a g e d 9 6 p e r c e n t o f c a p a c it y in J u n e , a c c o r d in g to T h e I r o n b e tw e e n th e t h is 3 0 , 1 9 4 1 , fo r a re a . T h e th e D e fe n s e u p to J u n e 3 0 h a d a llo t t e d $ 4 2 .2 m illio n a m o u n t o f m o n e y h a s b e e n s e t a s id e t h is a r e a b y th e U n it e d fo r d e fe n s e S t a te s H o u s in g A u t h o r it y a n d th e P u b lic B u ild in g s A d m in is t r a t io n . O th e r d e fe n s e a c t iv it ie s a re b e in g c a r r ie d on in th e s ix s ta te s o f th e D is t r ic t b y th e C i v i l A e r o n a u t ic s A d m in is t r a t io n , th e W o r k P r o je c t s A d m in is t r a t io n , th e O ffic e o f E d u c a t io n , tw o w e e k s f o llo w in g th e J u ly F o u r t h h o lid a y th e re p o rte d r a t e th e N a t io n a l Y o u t h h a s b e e n 9 5 p e r c e n t. P r e s s r e p o r t s in d ic a t e a la r g e a n d c o n A d m in is t r a t io n . T h e t a b le o n p a g e 3 7 lis t s th e d e fe n s e c o m s t a n t ly g ro w in g b a c k lo g o f o r d e r s . F o r th e c o u n t r y , th e J u n e m itm e n ts o f th e s e a g e n c ie s in a v e r a g e o f 1 0 0 c o m p a re s w it h 9 8 f o r M a y a n d w it h 8 3 .8 f o r D is t r ic t f o r th e p e r io d J u ly J u n e la s t y e a r . P ig ir o n p r o d u c tio n in A la b a m a d e c lin e d 3 A d m in is t r a t io n , a n d th e F a rm e a c h o f th e s ix S e c u r it y s ta te s o f th e 1 , 1 9 4 0 -Ju n e 3 0 , 1 9 4 1 . T h e e m e rg e n c y s h ip p r o g r a m o f th e U n it e d S t a te s M a r it im e p e r c e n t o n a d a ily a v e r a g e b a s is in J u n e , b u t w a s 1 5 p e r c e n t C o m m is s io n g r e a t e r th a n a y e a r a g o , w h ile in th e U n it e d S ta te s J u n e o u t L o u is ia n a h a s re c e iv e d a b o u t t w o - th ir d s o f th e t o t a l a llo tm e n ts is g o in g fo rw a rd in L o u is ia n a and A la b a m a . p u t g a in e d 2 p e r c e n t o v e r M a y a n d w a s u p 1 9 p e r c e n t fro m u n d e r t h is p r o g r a m Ju n e 1 9 4 0 . th e r e m a in in g t h ir d . P la n t e x p a n s io n fin a n c e d b y th e D e fe n s e C o a l p r o d u c t io n in A la b a m a a n d T e n n e s s e e , s h a r p ly c u r in t h is a r e a , w h ile A la b a m a h a s r e c e iv e d P la n t C o r p o r a t io n h a s a s s u m e d la r g e p r o p o r t io n s in A la b a m a t a ile d in A p r i l, w a s re s u m e d in th e e a r ly p a r t o f M a y . J u n e and o u tp u t w a s 3 7 p e r c e n t g r e a te r th a n in M a y a n d 2 5 p e r c e n t o f th e s e v a r ie d a b o v e th e le v e l o f J u n e la s t y e a r . I t w a s , w h e n a llo w a n c e is fu n d s a r e to b e s p e n t in m a d e f o r s e a s o n a l in flu e n c e s , a t th e h ig h e s t p o in t re a c h e d s in c e th e e a r ly p a r t o f 1 9 2 7 . E le c t r ic p o w e r p r o d u c tio n w a s a t th e h ig h e s t le v e l o n r e c T e n n e sse e . W P A d e fe n s e p ro g ra m s and p r o je c t s a r e a lm o s t h a lf th e t h ir d of la r g e s t th e s e W PA F lo r id a . A s o f J u ly 5 , th e re w e re 5 ,7 9 6 d e fe n s e h o u s in g u n it s u n d e r c o n s t r u c tio n a t a t o t a l e s tim a te d c o s t o f $ 1 6 .2 m illio n , o r a n a v e ra g e u n it c o s t o f $ 2 ,7 8 3 . P r o je c t s — f o r w h ic h c o s t e s t i o rd in A p r i l, a n d d e c lin e d le s s th a n 1 p e r c e n t in M a y . N o t m a te s a r e n o t y e t a v a ila b le — h a v e b e e n a p p ro v e d w h ic h w il l w it h s t a n d in g th e c o n tin u e d d ro u g h t, M a y o u tp u t w a s 2 4 p e r p r o v id e a n a d d it io n a l 3 ,3 4 0 u n it s . T h e b u lk o f t h is c o n s t r u c c e n t a b o v e t h a t a y e a r e a r lie r . t io n is o c c u r r in g in ► T h e S ix t h D is t r ic t , a s w e ll a s th e c o u n t r y a s a w h o le , h a s a o f w h ic h s ta te s m o re th a n 2 ,0 0 0 u n it s w il l b e b u ilt . C o n tin u e d on p a g e 40 A la b a m a , F lo r id a , a n d G e o r g ia , in each 37 M o n t h l y R e v ie w o f t h e f e d e r a l R e s e r v e S a n k o f A t l a n t a f o r J u l y 1 9 4 1 ► A lt o g e t h e r , p la n n e d e x p e n d it u r e s u n d e r th e s e p r o g r a m s in th e S ix S ta te s re a c h e d $ 1 9 2 .7 m illio n o n J u n e 3 0 ,1 9 4 1 , w h ic h , a d d e d to t o t a l A r m y a n d N a v y c o n t r a c t s u p to t h a t d a te o f $ 4 7 7 .3 g ra n d m illio n ,1 g iv e s a g ra n d t o t a l f o r th e D is t r ic t is , t o t a l o f $ 6 7 0 .0 m illio n .5 T h e o f c o u rs e , s o m e w h a t lo w e r th a n th e f ig u r e f o r th e S ix S ta te s b u t is n o t a v a ila b le b e c a u s e d e fe n s e c o n t r a c t s a n d e x p e n d itu r e s o th e r th a n th o s e o f th e W a r a n d N a v y D e p a rtm e n t s a re n o t b r o k e n d o w n b y F e d e r a l R e s e r v e D is t r ic t s b y th e r e p o r t in g a g e n c ie s . June 1941, page 6. The May 31 figure was computed by totaling all contracts in the May 1941 supplement to the OPM Listing of Major Defense Contracts Awarded by War and Navy Departments and adding the total thus secured to the April 30 total similarly computed in Dun's Review. The OPM Listing “covers all public-knowledge, prime contract awards made by the War and Navy Departments and re ported to the Bureau of Research and Statistics . . . excepting awards with a gross value of less than $50,000 and excepting awards for fuel and foodstuffs. All directives issued to Army and Navy establishments are excluded, but awards made by those establishments to private industry are included.” ’This figure applies only to contracts for items that are to be produced in the continental United States. Off-continent contracts as well as con tracts that could not be assigned to a Federal Reserve District are excluded. The total as of April 30, 1941, appears in Dun's Review for 2Figures for Army and Navy contracts in the Six States are taken from tabulation number 24 of National Defense Program Contracts and Expenditures compiled by the Office of Government Reports. It should be remembered that this figure for Army and Navy contracts differs from the total pictured in the chart because the chart covers Army and Navy contracts in the Sixth District for the period June 1, 1940May 31, 1941, while this present figure is the total for the Six States for the period July 1, 1940-June 30, 1941, and is used here in order to make possible an addition of Army and Navy contracts and the defense commitments of other federal agencies. Publication of this information on Navy Department contracts was stopped on June 2, 1941. For this reason the figure given is below the correct one. D E F E N S E C O M M IT M E N T S O F F E D E R A L A G E N C IE S O T H E R T H A N W A R A N D N A V Y D E P A R T M E N T S IN T H E S IX ► A rm y and N avy c o n tra c ts p lu s d e fe n s e c o m m itm e n ts of o th e r f e d e r a l a g e n c ie s in th e y e a r e n d e d J u n e 3 0 , 1 9 4 1 , to t a l $ 1 7 .3 b illio n in th e n a tio n a s a w h o le . O f th e n a t io n a l t o t a l, $ 0 .7 b illio n , o r 3 .9 o f th e S ix t h p e r c e n t, w i l l b e s p e n t in th e s ix s ta te s D is t r ic t .— B . B . S TA TES O F TH E S IX T H F E D E R A L R E S E R V E D IS T R IC T . J u ly 1, 1 9 4 0 - Ju n e 3 0 , 1941 A LA B A M A United States Maritime Commission—Emergency Ship Program ............... ............................................................... $ 20,822,500 Civil Aeronautics Administration— 116,200 Airport Expansion Program............................................... Work Projects Administration—Defense Projects........... 3,073,046 United States Housing Authority—Defense Housing Projects ................................ ............................................... 2,787,553 Public Buildings Administration—Defense Housing....... 1,409,000 Office of Education—Defense Training............................... 1,079,911 National Youth Administration— Defense Training Funds for 1941....................................... 1,258,008 Defense Plant Corporation...................................................... 9,801,211 Reconstruction Finance Corporation..... .............................. 19,068,188 Office of Education—Defense Training.. National Youth Administration— Defense Training Funds for 1941..... Defense Plant Corporation......................... 697,846 994,699 125,000 TOTAL ......................................................................................... $ 52,879,810 M IS S IS S IP P I Work Projects Administration—Defense Projects........... $ Public Buildings Administration—Defense Housing....... Office of Education—Defense Training....._....................... National Youth Administration— Defense Training Funds for 1941................................. Reconstruction Finance Corporation................................... 2,652,343 148,500 930,497 59,415,617 TOTAL ......................................................................................... $ 4,851,510 Civil Aeronautics Administration— 439,200 Airport Expansion Program................................................. j Work Projects Administration—Defense Projects............. 15,891,907 United States Housing Authority—Defense Housing 2,064,461 Projects ............................................................................... 2,452,500 Public Buildings Administration—Defense Housing....... 809,456 Office of Education—Defense Training............................... National Youth Administration— 652,491 Defense Training Funds for 1941....................................... 4,254,485 Reconstruction Finance Corporation................................... Farm Security Administration—Defense Housing........... $ Work Projects Administration—Defense Projects........... United States Housing Authority—Defense Housing Projects ........................................................... .................... Office of Education—Defense Training............................. National Youth Administration— TOTAL TEN N ESSEE F L O R ID A ..$ 28,692,700 TOTAL Work Projects Administration—D efense Projects........... $ United States Housing Authority—Defense Housing Projects ................................................................................ Public Buildings Administration—Defense Housing....... Office of Education—Defense Training............................... National Youth Administration— Defense Training Funds for 1941....................................... Reconstruction Finance Corporation................................... 5,367,846 1,704,833 2,452,500 1,184,434 1,426,365 68,701 ..................................................................................... $ 12,204,679 L O U IS IA N A United States Maritime Commission—Emergency Ship Program ................................................................................$ 42,341,000 Civil Aeronautics Administration'— Airport Expansion Program................................................. 340,000 Work Projects Administration—Defense Projects........... 6,686,265 Public Buildings Administration—-Defense Housing....... 1,695,000 114,750 433,530 774,800 1,093,569 Defense Training Funds for 1941............................. 1,218,616 D efense Plant Corporation..................................................... Reconstruction Finance Corporation................................... Federal Works A gency—Defense Housing....................... 32,223,829 15,086 786,625 TOTAL ......................................................................................... $ 36,660,805 S IX S T A T E S G E O R G IA TOTAL 970,170 150,000 United States Maritime Commission—Emergency Ship Program..................................................................................$ Civil Aeronautics Administration— Airport Expansion Program................................................. Work Projects Administration—Defense Projects........... United States Housing Authority — Defense Housing Projects................................................................................... Public Buildings Administration—Defense Housing....... Office of Education—Defense Training............................... National Youth Administration— Defense Training Funds for 1941................................. Defense Plant Corporation....................................................... Reconstruction Finance Corporation................................... Farm Security Administration—Defense Housing........... Federal Works A gency—Defense Housing....................... 63,163,500 895,400 34,104,937 7,331,647 8,285,700 5,795,713 6,520,349 42,150,040 23,556,460 114,750 786,625 TOTAL............................................................................................ $192,705,121 S o u r c e : National Defense Program Contracts and Expenditures— T a b u l a t i o n N o . 2 4 . C o m p i l e d f r o m p r e s s r e l e a s e s b y O f f ic e o f G o v e r n m e n t R e p o r t s . M o n t h ly R e v ie w o f th e f e d e r a l R e s e r v e B a n k o f A t la n t a f o r J u l y 1 9 W 38 INDUSTRIAL PRODUCTION 160 N a tio n a l S u m m ary o f B u sin e ss J t40 Prepared by the Board oi Governors oi the Federal Reserve System ISO 100 Industrial production increased further in June, continuing the rapid advance that began about a year ago. Commodity prices, both in retail and in wholesale markets, rose con siderably between the early part of June and the third week of July. 1 ' / 1 1 \ 80 P r o d u c tio n (V ^ MANUFACTURE ______ — 3 -J'i r -i i MANUFACTURES \ \ \ MINFRAI S i i Federal Reserve index oi physical volume oi production, adjusted ior seasonal variation, 1935-1939 average = 100. Subgroups shown are expressed in terms oi points in the total index. By months, January 1935 to June 1941. WHOLESALE PRICES Bureau oi Labor Statistics' indexes, 1926 —100. “Other" includes commodities other than iarm products and iood. By weeks, January 5. 1935, to July 12, 1941. MEMBER BANK RESERVES AND RELATED ITEMS BILLIONS OF DOLLARS &JUJ0NS OF OOLLAftS Reflecting the continued advance in industrial activity at a time when output ordinarily declines, the Board’s adjusted index advanced from 150 per cent of the 1935-1939 average, in May to 156 in June and preliminary estimates indicate a further rise in July. The current level compares with 104 before the start of the European war and 111 in the spring of 1940, when the Current advance in industrial activity began. Further increases in output were reported in June for a considerable number of industries, particularly those associated closely with the defense program, and there were no important declines. As in other recent months, activity in the aircraft, shipbuilding, machinery, and railroad equipment industries rose sharply. Automobile production was maintained at the high level of May, owing mostly to unusually large retail sales. Output of iron and steel and nonferrous metals, already close to capacity, did not show an increase to correspond with the rise in output of finished metal products and official statements indicated growing concern over shortages of numerous materials. Steel ingot production remained close to 99 per cent of capacity during June, but the rate in the middle of July was slightly lower. For the year to date output of steel has averaged 98 per cent of the rated capacity as of December, 1940. Output of textiles and most other nondurable manufactures in June continued at recent advanced levels, which in some instances represent capacity production. Output of chemicals continued to increase rapidly. Also, there was a sharp rise in rubber con* sumption, reflecting continued heavy demand for rubber products and the fact that June was the last month before curtailment of rubber consumption by industry was to go into effect and was the month to be used in apportioning July consumption among various manufacturers. Mineral production increased in June, with a marked rise in output of anthracite, some further increase in output of bituminous coal, and a continued advance in crude petroleum production to a new high level. Value of construction contract awards in June continued at the high level reached in May and was nearly two-thirds above a year ago, according to figures of the F. W. Dodge Corporation. Awards for public construction again increased sharply, reflecting continued expansion in the volume of defense construction projects. Private residential building contracts declined somewhat more than seasonally, following an increase in May. D is tr ib u tio n Sales of general merchandise showed little change from May to June. Department store sales decreased more than seasonally, while rural retail and variety store sales remained at the May level, although a decline is usual at this time of the year. In the early part of July sales at department stores rose somewhat and were 24 per cent higher than a year ago. Loadings of revenue freight increased further in June, reflecting continued expansion in shipments of coal and miscellaneous merchandise, and by the end of the month were in larger volume than at any time during the seasonal peak last autumn. C o m m o d ity P r ic e s Wednesday figures, January 4, 1939, to July 9, 1941. Wholesale prices of most groups of commodities continued to advance from the early part of June to the middle of July. Prices of foodstuffs showed large increases and there were substantial advances in prices of a number of industrial raw materials and finished products. Following earlier marked advances, prices of hides and cotton gray goods were reduced by Governmental action. Retail prices for foods and many other commodities have been rising and in June the cost of living was about 4 per cent higher than 4 months earlier. Preliminary figures indicate further advances in July. MEMBER BANK RESERVES M.UONS OF DOLLARS BILUONS Of BOlLAM V mmmmm TOTAL/.;: :::& : > ' ' r 1 -" M iplUJlJL REQUIR ED RESER V ES : : : : EX CESS RE SER V ES /> 1935 1936 B a n k C r e d it Holdings of United States Government securities by member banks in 101 leading cities increased further during June and early July, reflecting in part new offerings by the Treasury. Commercial loans continued to rise sharply. Notwithstanding the greater volume of bank loans and investments, deposits of city banks declined somewhat over the period, reflecting mainly a growing demand for cur rency and a building up of Treasury deposits at the Reserve Banks. These developments also resulted in a decrease in the volume of excess reserves, which amounted to about $5,300,000,000 on July 16, compared with $6,900,000,000 a year earlier. W m m t, 1937 1938 1939 1940 1941 Wednesday figures, January 2, 1935, to July 9, 1941. U n ite d S ta te s G o v e r n m e n t S e c u r ity P r ic e s United States Government securities advanced further during the latter part of June. Partially tax-exempt 1960-65 bonds on June 26 were at an all-time peak, on a 2.02 yield basis. Since that time they have declined slightly. Taxable bonds generally continued to advance to successive new high levels. Yields on Treasury notes showed little change during the latter part of June and the first half of July. M o n t h l y R e v ie w o f t h e f e d e r a l R e s e r v e B a n k o f A t l a n t a f o r J u l y 1 9 4 1 CONDITION OF FEDERAL RESERVE BANK OF ATLANTA Per Cent Change (In Millions oi Dollars) July 16 June 18 July 17 June 18 July 17 1941 1941 1941 1940 1940 Bills discounted. . . . . $ .04 $ .01 $ .2 +300 — 80 Industrial advances. .2 .2 .2 U. S. securities..... 94.9 89.8 92.1 — 3 + 3 92.3 95.1 90.3 — 3 + 2 167.5 222.2 216.3 + 3 + 33 Member bank reserve deposits. . 284.4 268.0 226.6 + 6 + 26 U. S. Gov't general deposits . . 30.2 34.2 13.5 — 12 + 124 — 2 + 63 41.5 42.3 25.5 6.4 7.6 5.1 - 16 + 25 362.4 352.0 270.7 + 3 + 34 481.4 354.5 497.4 + 3 + 40 Industrial advance commitments .5 .05 .03 + 67 — 90 CONDITION OF 22 MEMBER BANKS IN SELECTED CITIES (In Millions of Dollars) Per Cent Change luly 16, 1941, from July 16 June 18 July 17 June 18 July 17 1941 1941 1940 1941 1940 Loans and Investments- Total . $731.5 $722.0 $618.8 + 18 + 1 Loans—Total........................ 381.1 376.7 307.9 + 24 + 1 Commercial, industrial, and __ 1 agricultural loans............ 192.4 151.7 + 27 193.5 Open market paper............ 5.4 5.2 3.4 + 53 —■ 4 Loans to brokers and dealers + 42 in securities................... 6.4 6.3 4.5 + 2 Other loans for purchasing and carrying securities..... 10.8 11.3 11.1 + 5 + 2 37.4 36.4 32.2 + 16 ■ + 3 Loans tobanks. 1.5 1.5 + 50 1.0 104.4 + 22 126.9 122.6 + 4 Investments—Total............ 350.4 310.8 345.3 + 13 + 1 143.0 U. S. direct obligations..... 167.8 163.8 + 17 + 2 Obligations guaranteed by 63.0 U. S........................... 69.3 65.2 + 10 + 6 113.4 116.3 104.8 2 + 8 182.2 171.1 141.6 + 6 + 29 — 3 15.4 13.2 15.9 + 17 259.1 233.2 + 14 Balances with domestic banks. 265.8 + 3 528.4 502.8 432.3 + 22 + 5 191.3 191.3 191.1 + o 36.9 + 33 48.9 47.2 U. S. Gov't deposits. + ' 4 1 2 9 1 .1 + 25 3 6 5 .1 3 6 3 .1 Deposits of domestic b. + Borrowings............. DEBITS TO INDIVIDUAL ACCOUNTS (In Thousands of Dollars) Per Cent Change June May June June 1941 from 1 9 4 0 1 9 4 1 M ay1941 Junel940 1 9 4 1 ALABAMA Birmingham. . $ 122,458 $ 124,455 $ 92,012 — 2 + 33 3,544 4,357 2,229 -— 19 + 59 Dothan........... 60,377 1 + 45 Mobile............... 60,043 41,333 Montgomery........ 19,671 —■20 + 27 24,953 31,038 FLORIDA Jacksonville. 106,195 114,215 7 + 45 73,108 Miami........... 56,279 67,382 50,370 — 16 + 12 Pensacola .... 12,086 12,861 9,393 — 6 + 29 Tampa........... 41,539 40,269 29,272 + 3 + 42 GEORGIA Albany............... 6,693 6,753 4,878 .— 1 + 37 Atlanta............... 283,864 210,404 — 5 + 35 298,405 Augusta............. 17,514 —— 2 + 47 25,661 27,988 Brunswick........... 3,381 17 + 17 4,080 2,896 Columbus........... 23,476 25,916 15,521 — 9 + 51 — Elberton............. 1,376 1,135 15 + 21 1,622 Macon................ 23,479 14,713 — 8 + 60 25,556 Newnan............. 2,726 2,731 1,559 _ . 0 + 75 Savannah............ 37,234 42,025 28,862 11 + 29 Valdosta. . . 4,207 3,415 -■ 9 + 23 4,608 LOUISIANA New Orleans 280,385 282,107 202,399 1 + 39 MISSISSIPPI Hattiesburg..... 8,860 9,972 4,648 ___ 11 + 91 Jackson......... 29,911 34,114 25,486 ___ 12 + 17 Meridian......... 16,073 16,573 12,443 3 + 29 Vicksburg........ 8,060 7,012 + 3 + 15 7,833 TENNESSEE Chattanooga. , . 58,910 43,134 + 3 + 37 57,252 Knoxville............ 38,410 30,000 J... 1 + 28 38,776 Nashville............ 109,737 114,114 81,671 4 + 23 SIXTH DISTRICT 26 Cities............. 1,389,540 1,455,379 1,025,078 5 + 36 UNITED STATES 274 Cities............ 45,942,000 43,665,000 35,003,000 + 5 + 31 RETAIL TRADE —JUNE 1941 (Cities for which no indexes are compiled) Sales for June compared with : May 1941 June 1940 May 1941 June 1940 Baton Rouge. — 25 16 Knoxville..... — 22 + 12 Chattanooga. — 19 +13 Macon.......... — 20 +17 Jackson....... - 21 f 19 Montgomery. +10 +16 Jacksonville — 23 + 35 Tampa — 12 +20 39 SIXTH DISTRICT BUSINESS INDICATORS Indexes ' = 100, except as noted) Adjusted Unadjusted June May June June May June 1941 1941 1940 1941 1941 1940 !) DISTRICT (47 Firms). . . 134 138 115 114 136 98 Atlanta.................. 114 142 98 Birmingham........... 121 140 104 Nashville............... 110 137 93 New Orleans......... 114 121 100 RETAIL STOCKS DISTRICT (21 Firms). . . 87 84 82 86 69 73 . 165 161 129 158 163 124 Birmingham. . 77 76 80 6b 78 66 64 64 Nashville.... .. 64 53 62 52 New Orleans. 74 75 76 63 71 59 WHOLESALE SALES TOTAL................ 61 78 80 Groceries............ 50 63 68 Dry Goods........... 54 36 59 Hardware............ 153 158 102 Drugs................ 103 112 92 CONTRACTS AWARDED DISTRICT.................. 84 113 137 Residential................ 104 114 127 Others...................... 119 152 55 Alabama................... 183 477 77 Florida.................... 6 7 73 78 Georgia................... 98 63 68 Louisiana.................. 113 115 142 Mississippi................ 462 144 58 Tennessee................ 64 99 129 BUILDING PERMITS 20 CITIES........... 86 92 124 Atlanta............... 36 26 160 Birmingham........ 28 38 107 Jacksonville........ 154 175 196 Nashville............ 35 25 278 New Orleans....... 30 76 50 PIG IRON PRODUCTION* Alabama................... 128 131 115 COAL PRODUCTION (1935-1939 Av. = 100) TWO STATES.............................. 184 132 145 156 114 125 160 109 134 Alabama................................... Tennessee.................................. 152 126 106 COTTON CONSUMPTION* THREE STATES...................... 253 252 158 309 312 185 Alabama................................. 227 225 146 Georgia.............................. 261 259 156 Tennessee............................. EMPLOYMENT (1932 Av. 100) 149 147 126 SIX STATES............ 165 163 132 Alabama.................. 105 102 Florida................... Georgia.................. 168 164 139 135 133 120 Louisiana................ Mississippi.............. 120 116 Tennessee............... 146 144 129 PAYROLLS (1932 Av. 100) S IX S T A T E S ........ 236 227 173 Alabama............ 348 330 225 Florida............... 87 106 108 Georgia............. 273 260 192 Louisiana........... 185 174 147 Mississippi......... 180 171 130 Tennessee........... 235 229 164 May Apr. May 1941 1941 1940 ELECTRIC POWER PRODUCTION* (1935-1939 Av = 100) TOTAL...................................... 173 174 139 By Water Power.......................... 136 163 129 By Fuel 153 220 Statistics (000 Omitted) June May June Year to Date 1941 1941 1940 1941 1940 COMMERCIAL FAILURES Number (Actual, not thousands) 38 46 48 253 350 Liabilities........................... ..$ 319 $ 361 $ 555 $ 2,711 $ 3,632 May Apr. May Year to Date 1941 1941 1940 1941 1940 FARM INCOME** SIX STATES......................... .. 68,460 59,427 63,030 312,675 277,771 Alabama............................. .. 12,140 8,252 7,917 39,203 37,573 Florida............................... . 16,119 18,969 24,114 79,381 65,824 Georgia.............................. .. 6,861 7,607 6,966 43,649 37,591 Louisiana........................... . . 11,968 8,310 9,261 44,337 39,792 Mississippi.......................... .. 10,666 7,963 5,705 48,683 45,862 Tennessee.......................... . . 10,706 8,326 9,067 57,422 51,129 ‘Indexes of retail sales, electric power and pig iron production, and of cotton consumption are on a daily average basis. “ In c l u d e s G o v e r n m e n t b e n e fit p a y m e n ts. M o n t h l y R e v ie w o f t h e F e d e r a l R e s e r v e B a n k o f A t l a n t a f o r J u l y 1 9 4 1 D is t r ic t S u m m a ry o f B u s in e s s C o n d itio n s o a ts , w h e a t, a n d s w e e t p o ta to e s , b u t le s s c o r n , h a y , to b a c c o , a n d w h ite p o ta to e s , th a n w e re p ro d u c e d la s t y e a r . C o n tin u e d fr o m p age 36 F a r m e r s ’ c a s h in c o m e f r o m s m a lle r a c re a g e p la n te d to c o tto n t h is y e a r th a n it h a s h a d in in c re a s e d s u b s t a n t ia lly in M a y m a n y y e a r s , a c c o r d in g w e re 1 2 p e r c e n t g r e a t e r th a n a y e a r a g o . G o v e rn m e n t b e n e fit to th e e s tim a te s o f th e U n it e d D e p a rtm e n t o f A g r ic u lt u r e . O n J u ly S ta te s 1 th e re w e re 8 ,1 3 2 ,0 0 0 c e n t fr o m is a re d u c tio n o f 7 .2 c re a s e o f 1 3 p e r c e n t in th e p la n te d a c re a g e la s t ( la t e s t a v a ila b le f ig u r e s ) a n d p a y m e n ts , h o w e v e r, w e re o f f 3 0 p e r c e n t fr o m A p r i l a n d 9 p e r a c re s p la n te d to c o tto n in th e s ix s ta te s o f t h is D is t r ic t . T h is p e r c e n t fr o m c r o p a n d liv e s t o c k m a rk e tin g s M a y la s t y e a r . T h e fiv e - m o n th t o t a ls s h o w a n in t o t a l c a s h in c o m e , a g a in o f 2 3 p e r y e a r , is 2 7 p e r c e n t le s s th a n th a t o f 1 9 3 7 , a n d 3 8 p e r c e n t le s s c e n t fr o m m a r k e tin g s b e in g o ffs e t in p a r t b y a d e c re a s e o f 2 0 th a n in 1 9 3 3 . T h e D e p a rtm e n t ’ s J u ly e s tim a te s in d ic a t e m o re p e r c e n t in b e n e fit p a y m e n ts .