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Monfhlu Review
ATLANTA, G E O R G IA , JU N E 30, 1956

J n

%

tS

Is s u

e :

M o n e ta ry
S ta te a n d

P o lic y

in t h e

F irs t

H a lf o f

L ocal G o v e r n m e n t s C o n tin u e to

1956

B orrow

f o r C o n s tr u c t io n
S i x t h D i s t r i c t F o r e i g n T r a d e S i n c e W o r l d W a r II
D is tr ic t B u s in e s s H ig h lig h t s

S ix t h D id r id S t a t is t ic s :
D ebits to Individual Dem and D eposit A cco u n ts
D epartm ent S to re Sales and Inventories
Instalm ent Cash Loans
R eta il Furniture S to re O p erations
W holesa le Sales and Inventories

S ix t h V f f ir it f In d e x e s :

Con struction C o n tra cts
C o tto n Consum ption
D epartm ent S to re Sales and Stocks
E le c tric Pow er Production
Furniture S to re Sales and Stocks
M anufacturing Em ploym ent
M anufacturing Payrolls
Nonfarm Em ploym ent
Petroleum Production
Turnover o f Dem and D eposits

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S I N

E S S

H

I G

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S

E c o n o m ic a ctiv ity in th e D istr ic t is ta k in g a b reath er as m o st in d ica to rs eith er m ark tim e
or reced e sligh tly. M a n u fa ctu r in g e m p lo y m e n t an d co n su m er sp en d in g an d sa v in g are
d o w n . W ea k n esses, h o w ev er, are n o t p ro n o u n c e d en o u g h to sig n a l th e en d o f g en era l
sta b ility in th e D istr ic t’s ec o n o m y .




N o n fa rm

after seasonal adjustment, in April held near the records

e m p lo y m e n t ,

reached in March.
e m p l o y m e n t , after seasonal adjustment, rose slightly in April but,
according to preliminary estimates, declined in May.

M a n u f a c t u r in g

o p e r a t i o n s in Birmingham in late June remained at depressed May levels
because of a continued work stoppage at a major producer’s.

S te e l

p e t r o l e u m p r o d u c t i o n in Mississippi and coastal Louisiana, after seasonal
adjustment, dropped slightly in May from the peak reached in March.

C ru d e

a c t i v i t y , as measured by seasonally adjusted cotton consumption, fell some­
what in May after having increased slightly in April.

T e x t ile

r a t e o f h o t e l a n d m o t e l o c c u p a n c y in greater Miami in May was higher
than last May, according to the University of Miami Business Bureau.

The

In s u re d

u n e m p lo y m e n t ,

reflecting the effects of a labor dispute, rose contra-

seasonally in May.
s t o r e s a l e s in June, after adjustment for seasonal variation and
trading day differences, were down slightly from May.

D e p a rtm e n t

F u r n it u r e

s a le s ,

seasonally adjusted, decreased in May from the April

r e g is t r a t io n s

in April were lower than in the previous month and the

sto re

volume.
N ew

car

same month last year.
at commercial banks were down contra-seasonally during the last two
weeks of May and the first three weeks of June. Loans to both wholesalers and
retailers have declined sharply.
T r a d e lo a n s

were down in May from April as indicated by time deposits and
ordinary life insurance sales.

C o n s u m e r s a v in g s

i n s t a l m e n t c r e d i t at commercial banks increased in May, with the
largest gains recorded in automobile credit.

C o n su m er

p a y m e n t s , measured by bank debits, rose further in May, after seasonal
adjustment, to a point considerably above a year ago.

C heck

at member banks declined somewhat more than seasonally in May,
but, according to preliminary information, increased in June.

T o t a l d e p o s it s

at all member banks increased slightly more than usual during May,
and preliminary data reveal a further rise in June.

T o t a l lo a n s

B u s i n e s s l o a n s at banks in selected cities rose somewhat in June as loans to sales
finance companies and to manufacturing and mining and construction firms
increased.
M e m b e r b a n k b o r r o w i n g s from the Federal Reserve Bank held near the May
high, but excess reserves increased slightly; free reserves, therefore, rose somewhat.
F a v o r a b le w e a t h e r

has aided crop development in most areas.

p r o d u c t i o n will continue to rise this year; the spring pig crop was substan­
tially above last year’s crop, but the national pig crop was smaller.

P o rk

P r i c e s of many farm products continued upward through May; orange, hog, and
beef cattle prices were up from a month and from a year ago.

•

2

•

M

o n e ta ry

P o lic y

in

th e

Credit conditions can be a result of both Federal Reserve
policy and economic activity. This is illustrated by what
has happened in the first six months of 1956. As the
year began, the economy was operating at near capacity.
Demands for steel, paper, aluminum, cement, and other
key products were so strong that they could not be met
from current production. Consequently, prices of many
industrial commodities and even some consumer goods
were rising. Credit demands were also strong in relation to
the credit that was available.
Following a policy of promoting sustainable growth in
the economy, the Federal Reserve System took steps to
limit forces that might lead to inflation. But as mid-year ap­
proached, there were signs that economic activity was
slowing down.

Influencing Bank R eserves
To further economic stability, the System depends on its
ability to expand or contract the supply of credit and to
make credit more costly or less costly. It exercises this
function by effecting changes in reserves, upon which the
volume of bank credit extended is based. The most direct
method of doing this, and one that the System chiefly
depends on, is through open-market operations, that is, the
buying and selling of Government securities.
Other factors also affect reserves, however, some of
which are not subject to such direct Federal Reserve con­
trol. These include a flow of currency from the public to
the banks, which is usually heavy in the early part of each
year. Another is member bank borrowing, which to some
degree is subject to System control. One problem of mone­
tary policy, therefore, is to offset or reinforce changes re­
sulting from factors that are subject to little or no control.
During most of this year, System open-market operations
have been aimed at keeping reserves under considerable
pressure while guarding against sharp or erratic changes.
In early 1956, the System sold substantial amounts of se­
curities, which had the effect of offsetting increases in
reserves caused by the return flow of currency and the
decline in required reserves. Between the end of December
1955, and May 23, 1956, the System on balance sold 1.6
billion dollars of securities, but there were week-to-week
changes to take care of such factors as float, that is, checks
that are credited but not collected.
Bankers supplemented their reserves by borrowing from
the Federal Reserve Banks during this period. At member
banks in the nation, average daily borrowings amounted
to 937 million dollars in the first five months of this year.
That was more than twice the amount for the same months
in 1955. In this District, borrowings increased at a smaller
rate than in the nation.
One way the System can influence member bank borrow­
ing is to change the discount rate. By raising the rate and
making it more costly for the banks to borrow, the System
supplements the pressure on reserves caused by openmarket operations. In April, the Federal Reserve Bank of
Atlanta and nine other Reserve Banks increased the rates



F ir s t

H

a

lf o f 1 9 5 6

from 2 l/i percent to 23A percent; the San Francisco and
Minneapolis Banks increased the rates from 2Vi percent
to 3 percent.
The movement of free reserves is one indicator of the
degree to which these actions effected restraint, free re­
serves being excess reserves less borrowings from the
Federal Reserve. Open-market operations to some extent
influenced the level of these reserves. In April 1956, for
example, free reserves averaged minus 460 million dollars,
which meant that member banks owed the Reserve Banks
more than they held in idle reserves. Last April, on the
other hand, free reserves were positively inclined— an in­
dication that bank reserves were under no great pressure.

M onetary Conditions Ease Slightly
Economic conditions in the late spring of this year became
less buoyant. Spending on residential housing failed to turn
upward; cutbacks in automobile production became more
pronounced; and output of farm machinery and synthetic
textiles was curtailed. Industrial commodity prices, more­
over, began moving sideways.
Thus, between May 23 and June 20, the System added
to reserves by buying 292 million dollars of Government
P r e s s u r e o n r e s e r v e s c o n t in u e d in t o 1 9 5 6 a s . . .

L o a n s r o s e ; b u t s in c e b a n k s s o ld

T h e m o n e y s u p p ly c h a n g e d lit t le .

in v e s t m e n t s . . .

securities. Banks found it possible to reduce their borrow­
ings, and free reserves fell from about minus 600 million
dollars in mid-May to less than minus 200 million in midJune. Security yields also tended to decline.

Pinch Not Too S evere
We can understand the impact of monetary policy more
clearly if we see whether credit became more or less avail­
able and more or less costly to private borrowers. During
the first half of 1956 as a whole, it is clear that more rather
than less credit became available through bank loans. For
example, at member banks in the nation’s leading cities,
total loans between December 28, 1955, and June 6, 1956,
rose 1.7 billion dollars, a record gain.
Member banks in leading District cities so far this year
have added to their real-estate and consumer loans and
have lent more to brokers than they did last year. To
satisfy this overall expansion in lending, banks sold large
amounts of Government securities.
While banks were lending at a record rate, they were
charging more interest. At reporting banks in Atlanta and
New Orleans, average interest rates on business loans of
$1,000 or more that matured within one year rose from
3.91 percent in December 1955 to 3.98 percent in March
1956. Immediately following the hike in the discount rate
was an increase from 3 Vi percent to 3% percent in the
prime rate at banks in New York and other cities.
Many borrowers, moreover, probably did not receive
as much credit as they wanted. Some banks screened loan
requests more carefully; in some cases they lent less than
was requested, and on occasion they may have rejected
requests altogether. The credit expansion, consequently,
was probably smaller than it would have been in the ab­
sence of restraint. By holding down increases in the money
supply, the System probably helped keep down price ad­
vances. Demand deposits adjusted and currency outside
banks, after seasonal adjustment, fell 0.2 percent between
the end of December 1955, and the end of May 1956,
compared with a rise of 1.5 percent in that period of 1955.
Although some persons found it more difficult to obtain
credit, it seems likely that bankers provided some credit
to most types of borrowers. Small businessmen, at least
in some areas of this District, were apparently accom­
modated to about the same degree as last year. This is
suggested by the data on loan volume— by size of loan,
which is associated with size of borrower. For a sample of
banks in Atlanta and New Orleans, loans of less than
$10,000 made in March 1956 represented nearly the same
proportion of total loans as was granted in March 1955.

influencing Nonbank Lenders
Borrowers did not escape the higher costs and lessened
availability of credit when seeking help from nonbank
lenders, who also felt the effects of credit conditions and
monetary policy. Sales finance companies charged higher
interest rates and reduced the maturity of the paper that
they financed. In this District numerous sales finance
companies, which last year accepted from automobile
dealers paper on new cars sold for repayment within 36
months, reverted this spring to financing paper with a
maturity of 30 months or less.



Savings and loan associations, mutual savings banks,
and real-estate lenders found fixed interest-bearing Gov­
ernment guaranteed mortgages less attractive than pre­
viously because yields on corporate, municipal, and Gov­
ernment obligations rose in early spring. Savings and loan
associations and life insurance companies made fewer new
loans on residential housing in March 1956 than last
March. Nevertheless, their volume of loans this year was
large compared with any period other than 1955.
The number of new security offerings this year was
exceptionally large, reflecting extremely high demands for
long-term credit. Prices in the security market, moreover,
have been near records during the past six months. Post­
ponements were few, although several state and local
governments have put off their borrowing plans.

In conclusion, we find that exceptionally high credit
demands for the first half of 1956 as a whole made for less
readily available funds and for higher interest rates. Re­
serve actions reinforced this restraint. By keeping the
growth in credit in line with the rising output from new
production facilities and from businesses previously oper­
ating short of capacity, credit policy helped restrain infla­
tionary pressures and prevented speculative excesses, which
ultimately invite recession.
H arry B randt

B a n k

A n n o u n c e m e n ts

On June 1 the Bank of Jonesboro, Jonesboro, Georgia,
a nonmember bank, began to remit at par fo r checks
drawn on it when received from the Federal Reserve
Bank. Charles S. Conklin is President; J . B . Pulliam,
Executive Vice President; and Vance H . Stevens, Cash­
ier. Capital amounts to $25,000 and surplus and undi­
vided profits $104,154.
Another addition to the par list on June 1 was the
nonmember Commercial Bank and Trust Company,
Griffin, Georgia, whose President is D . J . A rnold. C. T .
Parker is Vice President and R alph S. Gibson is Cash­
ier. Capital is $200,000 and surplus and undivided
profits $684,590.
The State Bank, G riffin, Georgia, a nonmember bank,
also began to remit at par on June 1. D . R . Cumming
is President; Seaton G . Bailey and S. T . M artin are Vice
Presidents; F . Westmoreland is Cashier and J . M . Whiddon, Assistant Cashier. Capital is $200,000 and surplus
and undivided profits $684,905.
On June 4 the nonmember Bank of Covington and
Trust Company, Covington, Georgia, was added to the
par list. The President is J . L . Stephenson. R . R . Fow ler
is Executive Vice President; J . B . Weaver, Cashier; and
C . G . Henderson, J r ., Assistant Cashier. Capital totals
$100,000 and surplus and undivided profits $419,000.
On June 11 the newly organized nonmember South­
ern Bank, Way cross, Georgia, opened for business and
began to remit at par. Ralph H errin is President; M o r­
gan M . Z o o k, Executive Vice President; N . P . M iller,
Vice President and Cashier; and Taylor Zachry, Vice
President. Capital is $175,000 and surplus and undi­
vided profits $77,000.
•

4

•

S ta te

a n d
T o

L o c a l

B o r r o w

G o v e r n m e n ts
f o r

Construction continues to be a bolstering force in the
economy of the Sixth District states, primarily because
state and local governments are expanding the facilities
they provide their citizens. During the first quarter of this
year, construction by governmental units and public utili­
ties increased 40 percent, whereas total construction con­
tracts awarded were only 19 percent above the comparable
figure for 1955. Obviously, without public construction,
total building would have increased only slightly.
To build bridges, schools, and the like, state and local
governments obtain most of their funds by selling securi­
ties. The relationship, however, is not exact because at
times some construction is financed out of tax revenues.
Also, governmental units sometimes borrow short-term
funds and refinance an issue at a later date with a longerterm issue, particularly in the case of housing. Moreover,
some of the securities are issued to refund bonds sold
many years ago. Nevertheless, the total of securities issued
indicates fairly well the amount of construction that states,
cities, and counties are undertaking.
A recent detailed tabulation by this Bank of the securi­
ties issued by governmental units in this area revealed that
borrowing for public construction increased from 137
S e c u r it ie s Is s u e d b y S t a t e a n d L o c a l
G o v e r n m e n t s ; S ix t h D is t r ic t S t a t e s

First Quarter, 1955 and 1956
Million'-, of

c1
P uroo se of Borro w ings
D e v e lo p m e n t

10
i

20
i

*

Dollars
30
i

■

,*1955
h-1956

H o s p it a ls

Ii

P u b li c U t i l i t i e s

m m m *

40

50
—

i

j

60

i--------- 1—

Roads
S c h o o ls

i i H
i—

j
.—

j

M

|

H

H o u sin g

1

W ate r

—

,—

i—

Type

i

.

i

.

o f B o rro w e r

First Q uarter, 1956




Tenn

Alo

i

.

i

1

C o n t in u e

C o n s t r u c t io n
million dollars during the first quarter of 1955 to 167
million dollars in the like period in 1956. Although all
types of construction financing shared in the gain, the ex­
pansion in housing was particularly noticeable and reflected
the large amount of residential construction undertaken by
governmental units. Borrowing by housing authorities
amounted to 68.8 million dollars, compared with 57.2
million last year. In recent years, such borrowing has made
up about 40 percent of total borrowing, as many cities have
become more interested in clearing slums and in providing
an expanding population with adequate housing. To raise
the necessary funds, some cities and other governmental
units have established housing authorities which issue
securities. These issues are attractive to many investors be­
cause they are guaranteed either by the Housing and Home
Finance Agency or the Public Housing Administration.
As in 1955, governmental units in Louisiana had the
largest amount of new issues; about half of these were for
housing projects, which was about the same proportion in
the other states. City governments also were important in
contributing to the total. The airport expansion in New
Orleans accounted for a large part of the gain. Govern­
mental units in Georgia were expanding facilities, although
at a much lower rate than in Louisiana. In Georgia, aside
from housing authorities, city governments were the most
important type of borrower; their heavy borrowings largely
reflected expansions in water and sewerage systems.
The underwriting of such securities is big business for
local investment firms and commercial banks, but their
share was larger last year than it has been so far this year.
Of the securities issued during the first quarter 30 percent
were underwritten by southern firms or by syndicates made
up largely of southern firms. Last year, 34 percent were
underwritten by institutions in this area. The slight de­
crease reflects gains in housing securities, which are usually
underwritten by large northern firms. The amount of
housing securities was approximately 20 percent greater
for the first quarter of this year than it was in 1955. Fu r­
thermore, large issues generally call for syndicate under­
writing and therefore appeal primarily to firms and banks
in major northern cities. Of the 177 issues during the first
three months of 1956, some 23 percent were for over 5
million dollars, compared with only 19 percent in 1955.
Although local firms underwrite some securities orig­
inating in the District and elsewhere, they are not large
enough to handle all local issues, particularly the more
sizable ones. Even if they were, some local governments
that have a good credit rating and a national reputation
would find it more profitable to offer their securities on the
broader national market. A large proportion of local issues
consists of Government-guaranteed housing securities,
which in any case are not attractive to local underwriters
because of their low yield. Many local issues, therefore, are
underwritten by non-southern institutions.
C harles S. O v e r m il l er
• 5

•

S ix t h

D

is t r ic t

F o r e ig n

T r a d e

Many people in the Sixth District consider the sea that
washes the 1,812 miles of District coastline one of our
chief assets. The Atlantic and Gulf waters provide un­
paralleled facilities for recreation and excellent commercial
fishing grounds. They also serve as commercial highways
linking this District with foreign markets and sources of
supply. The total value of goods and services involved in
foreign trade through Jacksonville, Mobile, New Orleans,
Savannah, Tampa, and other District ports is greater than
that involved in either the tourist or the fishing industry.
Besides benefiting District agriculture and industry, foreign
trade has increased traffic for inland freight carriers.
During the 20 years immediately preceding World War
II, foreign trade through District ports failed to keep
pace with that through ports in the nation as a whole
largely because of the inability of American cotton to
compete successfully in world markets. World War II sig­
naled a halt to this downtrend. Shipments to our armed
forces and allies meant a greater diversification and larger
volume of trade through southern ports. After the war,
individuals with interests in the various port cities of this
region voiced strong hopes that the wartime gains could
be retained. The attitude expressed by the editors of the
New Orleans Port R ecord was typical: “Now with the
close of the war, the citizens of New Orleans have deter­
mined to capitalize on the strategic position occupied by
their port with respect to world trade . . . and have shaped
plans to utilize these natural advantages to help develop
a still greater flow of trade and travel between the Missis­
sippi Valley and the rest of the world.” Ten years have
passed since such objectives were voiced. It is now time
F o r e ig n T r a d e t h r o u g h S ix t h D is t r ic t P o r t s

A s P e r c e n t o f U n it e d

014-41

'42

'44

'4 6




*48

S ta te s T o ta l

'5 0

'52

'54

S in c e

W

o r ld

W

a r I I

to look back and see whether the hopes of District port
officials have been realized.

The Postwar Pattern
Since 1945, the volume of foreign trade moving through
Sixth District ports has been impressive. The dollar vol­
ume of custom clearings during 1955 was almost double
that of 1945. The import trade has been especially strong.
It seems that those who predicted ten years ago that im­
ports would hold the key to the future of District foreign
trade were correct. Imports are now 133 percent greater
than they were in 1946; exports have grown 53 percent.
Historically, this District accounted for between 10 and
11 percent of the nation’s exports and a little over 6 per­
cent of its imports. Since the war, this pattern has changed.
Southeastern ports are now responsible for approximately
9.5 percent of the nation’s exports and 8.5 percent of its
imports. Thus, the District’s share of national imports and
exports is in fairly close balance.

Recent D evelopm ents
Statistics compiled by New Orleans port officials reveal
that cotton is no longer king among District export prod­
ucts. In 1953, machinery and vehicle shipments replaced
cotton as a major category of goods leaving New Orleans.
Some observers point out that new industrial plants in this
District have contributed to this shift. Recent developments
at other District ports are also worthy of note. Mobile,
which has always been an important handler of bauxite,
manganese and other ores, has recently begun receiving
iron ore for the steel mills of Birmingham from Venezuelan
mines. Jacksonville and Savannah are now major bases for
a concern pioneering in “fishybacking”— the movement of
truck trailers overseas aboard L S T ’s and similar craft on
a “roll-on, roll-off” basis.
One of the most significant features of the District for­
eign trade picture has been the dramatic growth of air
cargo shipments through Miami. International movements
of commodities by air through the resort city are now about
2Vi times greater than they were six years ago. Dade
County officials expect this trend to continue, especially
as the buying power of the 45-million-person Caribbean
market grows and as facilities for the production of prod­
ucts for export expand in Miami. The port of Tampa also
has a vital stake in the growing Caribbean market.
The continued expansion of District foreign trade, de­
spite declines in cotton shipments, seems to indicate that
the diversification sought in 1946 has come about. Thus,
in this respect, the postwar hopes of promoters of foreign
trade in the District have been realized. In another respect,
the aspirations of these persons have not been attained,
for although the growth of foreign trade through District
ports has kept pace with the rate of growth in the nation
as a whole, it has not outstripped the national rate. Future
commerce through southeastern ports seems tied closely to
the course of total American foreign trade.

L eon T. K en dall

•

6

•

S ix th
In s t a lm e n t

C a s h

D is tr ic t

C o n d it io n o f 2 7 M e m b e r B a n k s in L e a d in g

L o a n s

Lender

No. of
Lenders

Percent Change
Volume
Outstandings
May 1956 from
May 1956 from
April
May
April
May
1956
1955
1956
1955

Federal credit unions . . .
State credit unions . . . .
Industrial b a n k s.................
Industrial loan companies .
Small loan companies . . .
Commercial banks . . . .

.
.
.
.
.
.

+ 12
+ 38
+ 26
+ 13
+5
+6

R e t a il

.
.
.
.
.
.

38
14
8
10
33
31

F u r n it u r e

+9
+ 12
+ 21
+ 19
+4
—9

S to re

+3
+3
+3
+1
+0
+1

+ 17
+ 22
+5
+8
+7
+ 14

O p e r a t io n s

Percent Change
May 1956 from
Item________________________________________________________________ April 1956
May 1955
Total s a l e s ....................................................................................
+20
—1
Cash s a l e s ....................................................................................
+11
—5
Instalment and other credit s a le s .............................................
+21
—0
Accounts receivable, end of month.............................................
+2
+8
Collections during month..............................................................
+5
+9
Inventories, end of m o n th ........................................................
—4
+4

W h o le s a le

S a le s

and

In v e n t o r ie s *
Percent Change

Sales
No. of
Type of Wholesaler_______________ Firms
Grocery, confectionery, meats . . 48
Edible farm p ro d u c ts......................13
Drugs, chems., allied prods. . . . 16
D ru g s ................................................ 8
Dry goods, a p p a re l........................... 6
Automotive...........................................47
Hardware................................................ 12
Plumbing and heating goods . . 14
Machinery: equip, and supplies . 41
In d u s t r ia l...................................... 23
Iron and steel scrap and waste
materials............................................10

+9
+ 29
+9
+2
+ 18
+7
+ 21
+ 21
—4
—7

+ 20

—4

May 1956 from
April
May
1956
1955

36

+7

+14

+ 11
+7
+ 15
+9
+ 12
+ 11

9

—6

—2

+ 12
+ 12
+ 42
+ 49

10
12
23
11

—1
—0
—1
—2

+7
+ 25
+ 32

— 17

6

+8

+42

+8

In v e n t o r ie s *

+ 10
+ 13

+8

+6

+7

+6
+5
+2
+15
+ 16
+ 13
+ 17
+ 20
+ 16
+11
+ 10
+ 13

+8
+7
+ 10

+8
+ 11

+6
+ 11

+2
+1
—2
+2

+6
+21
+5
+9
+ 11

—7
—7

D e b it s t o

June 22,
1955

May 23,
1956

June 22,
1955

3,342,521
1,770,950
1,799,593

3,323,644
1,762,493
1,790,673

3,219,854
1,503,557
1,528,015

+1
+0
+0

+4
+ 18
+ 18

954,187

952,780

848,360

+0

+ 12

35,617

35,647

21,051

—0

+ 69

49,987
48,538
161,411
160,928
17,847
13,388
570,848
563,564
1,571,571 1,561,151

40,122
137,147
16,721
464,614
1,716,297

+3
+0
—3
+1
+1

+25
+ 18
+7
+ 23
—8

520,228
738,698
312,645
520,274
51,069
270,216
2,380,738
638,904
111.857
668,100
71,000

590,250
794,259
331,788
498,843
47,094
242,261
2,344,378
634,625
87,281
619,248
36,500

+2
+0
+0
+4
—2
+ 11
+1
+1
—6
+8
—7

— 12
—7
—6
+4
+8
+ 12
+2
+1
+28
+8
+95

510,400
738,163
312,588
498,271
51,990
242,437
2,360,242
630,343
118,444
617,279
75,950

In d iv id u a l D e m a n d

D e p o s it A c c o u n t s

(In Thousands of Dollars)

Apr.
1956

May
1955

38,031
670,157
23,751
30,888
252,519
138,655
42,056

34,462
628,720
22,475
26,767
247,890
120,345
40,012

32,448
494,507
20,713
27,160
277,510
121,110
38,327

+7
+6
+ 15
+2
+ 15
+5

578,736
605,324
949,026
136,820
73,877
130,067
277,518
96,194

621,500
616,873
975,885
125,484
70,071
133,032
259,931
93,551

505,491
519,261
833,679
110,699
59,701
115,437
234,106
75,382

—7
—2
—3
+9
+5
—2
+7
+3

+ 14
+ 17
+ 14
+ 24
+24
+ 13
+ 19
+28

+ 14
+ 14
+ 13

48,373
1,483,870
86,628
16,035
92,499
6,735
41,898
14,335
100,599
12,943
37,562
134,911
21,861

48,569
1,426,605
96,403
13,897
89,636
5,124
36,662
13,670
96,972
11,605
36,175
133,842
22,519

+10

+10

+2
+8
+5
+7
+ 11

+8
+9
—1
+ 21
+9
+ 38
+23

+6
+6
+ 15
+3
+ 14
+ 12

+6
—3
+21
+ 11
+46
+25
+ 12

.
.

53,236
1,518,627
93.556
16,865
99,112
7,456
45,958
15,261
107,067
14,918
38,838
154,272
24,497

+29
+7
+15
+9

+7
+ 11
+ 11
+9
+ 11

.
.
.
.

63,173
165,773
75,196
1,227,226

55,394
158,895
68,351
1,081,001

49,525
153,683
67,682
1,104,221

+ 14
+4
+ 10
+ 14

+28
+8
+11
+ 11

+21
+5
+ 13
+8

.

29,114
191,315
35,131
16,753

26,926
186,839
32,379
16,422

23,111
177,889
30,904
17,076

+8
+2
+8
+2

+ 26
+8
+ 14
—2

+ 20

33,436
263,536
35,266
59,868
159,530
568,089

32,633
267,700
34,206
61,509
153,478
526,814

29,124
226,303
29,931
61,789
155,051
495,118

+2
—2
+3
—3
+4
+8

+ 15
+16
+ 18
—3
+3
+ 15

+ 12
+ 14
+ 12
+7
—3

7,777,612

7,430,809

6,914,353

+5

+ 12

+ 12

185,580,000 176,760,000 167,710,000

+5

+ 11

+10

ALABAMA
Anniston . . .
Birmingham . .
Gadsden

+8

. .

Montgomery . .
Tuscaloosa* . .
FLORIDA
Jacksonville . .

—4
—5

+ 13
+4

—2

+ 13

—6
—7

+2
—2

—3
—7

+ 14
+1

—5

—6

+8
+6

—5
—7

+5
+9
+3
+3

—8
—8
—2

+4
+3
+4
+3

— 11
—5

+6

—6

Pensacola. . .
St. Petersburg .
Tampa . . . .
West Palm Beach*
GEORGIA

+6
+27
+2
—1
—2
+ 10
+14

+ 22
+5
+7

Augusta .
Brunswick.
Columbus.
Elberton .
Gainesville*
Griffin* .

.
.
.
.
.
.

Savannah . .
Valdosta . .
LOUISIANA
Alexandria* .
Baton Rouge .
Lake Charles.
New Orleans .
MISSISSIPPI
Hattiesburg .

Percent Change
><
5 Months
May 1956 from
Apr.
May
from
1956
1955
1955

May
1956

+ 10

-Reporting stores account for over 90 percent of total District department store sales.
**ln order to permit publication of figures for this city, a special sample has been con­
structed that is not confined exclusively to department stores. Figures for non-depart­
ment stores, however, are not used in computing the District percent changes.




May 23,
1956

Loans and investments—
Loans— N e t ..........................
Loans— G r o s s ......................
Commercial, industrial,
and agricultural loans .
Loans to brokers and
dealers in securities .
Other loans for purchasing
or carrying securities. .
Real estate loans . . . .
Loans to banks .................
Other lo a n s ......................
Investments— Total . . . .
Bills, certificates,
and notes ......................
U. S. bonds ......................
Other securities.................
Reserve with F. R. Bank . .
Cash in v a u l t ......................
Balances with domestic banks
Demand deposits adjusted . .
Time d e p o sits......................
U. S. Gov’t deposits . . . .
Deposits of domestic banks .
Borrowings..........................

Greater Miami*.

Inventories
5 jvionths
May 31, 1956, from
May
1956 fromApril 30,
May 31,
1955__________1956 1955
+7
+5
+S
+1
+ 10
+7
+3
+7
+S

+6

June 20,
1956

Item

+24
+ 13
+ 27

Percent Change

A L A B A M A ................................ + 1 4
Birmingham.............................+ 1 0
Mobile....................................... + 22
Montgomery........................... + 22
F L O R ID A ......................................
+5
Ja ck so n v ille ...........................+30
Orlando......................................+ 16
St. Ptrsbg-Tampa Area . — 1
St. Petersburg . . . .
— 11
T a m p a ................................
+9
GEORGIA
................................ + 17
Atlanta**
...........................+ 1 5
A u g u s t a ................................ + 28
Columbus................................ + 1 2
M a c o n ......................................+ 2 7
R o m e * * ................................ +14
S a va n n a h **........................... + 18
L O U IS IA N A .................................+ 1 7
Baton Rouge........................... + 30
New Orleans............................ + 18
M I S S I S S I P P I ........................... + 1 5
Jackson
................................ + 11
M e rid ia n * * ...........................
+9
T E N N E S S E E ........................... + 22
Bristol (Tenn. & V a .)* * + 18
Bristol-KingsportJohnson C ity**
. . . + 21
Chattanooga............................+21
K n o xville ................................ + 1 7
N a sh ville ................................ + 29
D I S T R I C T ................................ + 14

Percent Change
June 20, 1956, from

—6
+ 18

S a le s a n d

Sales
May 1956 from
April
Place____________________________1956__________1955

C it ie s

(In Thousands of Dollars)

Inventories

May 1956 from
April
May No. of
1956
1955
Firms

*Based on information submitted by wholesalers participating in the Monthly Wholesale
Trade Report issued by the Bureau of the Census.

D e p a rtm e n t S to re

S ta tis tic s

.
.
.
.
.
.

Meridian . . .
Vicksburg . . .
TENNESSEE
Bristol* . . .
Chattanooga . .
Johnson City* .
Kingsport* . .
Knoxville . . .
Nashville . . .
SIXTH DISTRICT
32 Cities . . .
UNITED STATES
345 Cities. . .

+10

+10

*Not included in Sixth District totals.

• 7

•

+ 17
+36
+ 15
+ 14
—9
+ 14

+10

+10

+ 15
+32
+ 17
+9
+ 13
+7
+ 11

+10
+ 19
+7
+ 14
+ 13

+10

+10
+ 12
+1

+10

S ix th

D is tr ic t
19 4 7 -4 9

.
.
.
.
.
.

.
.
.
.
.
.

M a n u f a c t u r in g

M a n u f a c t u r in g

C o n s t r u c t io n

F u r n it u r e

E m p lo y m e n t

E m p lo y m e n t

P a y r o lls

C o n tra c ts

S to re S a le s * / * *

116
149
127
121
121
120

Mar.
1956

.
.
.
.
.

Apr.
1955

Apr.
1956

Mar.
1956

Apr.
1955

Apr.
1955

117
111
149
122
99
122
118

117
108
147
122
99
121
117

115r
107r
146r
120r
lO lr
121r
115r

180
169
220
186
163
194
181

178
167r
216r
186r
164
198r
179

165r
149r
201r
170r
155r
185r
167r

127
116
156
126
120
120
119

122r
112r
148r
121
115r
119r
116r

117
110
152
122
97
120
118

118
110
153
122
97
120
117

115r
106r
149r
120r
99r
120r
114r

180
169
225
186
158
192
179

180
167r
231r
186r
159
192r
179

165r
149r
205r
170r
150r
184r
165r

_____________ D e p a r t m e n t S t o r e S a l e s a n d S t o c k s * * ______________
___________ Adjusted________
April
1956

May
1955

May
1956

Apr.
1956

383
358
326
693
394
251

O th e r

May
1956

April
1956

May
1955

O Reserve Bank Cities
• Branch Bank Cities

mm District Boundaries
——Branch Territory Boundaries

"fa Board of Governors of the Federal Reserve System

265
353
243
469
170
154

May
1955

118
240
287
343
193
297

May
1956

Apr.
1956

May
1955

105p
113
109p
109p
114p

113r
109
119
118r
120

110
121
118
109
106

89

90

97

llO p
115
112p
116p
119p

99r
101
104
105r
109

115
124
120
116
111

95

81

104

D is tr ic t In d e x e s

___________Unadjusted

DISTRICT S A L E S * .................. 146
144
137r
143
136
135r
Atlanta1 ............................... 148
154
145
140
132
138
Baton R o u g e ...................... 132
121
114r
136
112
117r
Birmingham........................... 125
129
121r
119
116
115
Chattanooga........................... 129
126
124r
132
118
127
J a c k s o n ............................... 114
116
108
113
109
107
Jacksonville............................ 125
122
117r
135
112
126
Knoxville............................... 143
141
134r
147
135
138
154
137
147
125
133
Macon.................................... 151
Nashville................................ 129
121
127r
140
117
138
New Orleans
...................... 146
132
131
137
126
123
St. Ptrsbg-Tampa Area . . 157
152
148r
138
150
130r
Tam pa................................... 132
127
127r
125
124
120
DISTRICT STOCKS* . . . .
160
165
149r__________161
172
150r
’ To permit publication of figures for this city, a special sample has been constructed
that is not confined exclusively to department stores. Figures for non-department stores,
however, are not used in computing the District index.
*For Sixth District area only. Other totals for entire six states.
**Daily average basis.
Sources: Nonfarm and mfg. emp. and payrolls, state depts. of labor; cotton consumption,
U. S. Bureau Census; construction contracts, F. W. Dodge Corp.; furn. sales, dept,
store sales, turnover of dem. dep., FRB Atlanta; petrol, prod., U. S. Bureau of Mines;
elec. power prod., Fed. Power Comm. Indexes calculated by this Bank.




Mar.
1956

122r
lllr
143r
122r
116r
120r
116r

154
127
120
120
120

May
___________________________________ 1956

Apr.
1956

127
116
149
127
121
122r
120

. . 127
.
.
.
.
.

100

N o n fa rm

Apr.
1956
SEASONALLY ADJUSTED
District Total...........................
Alabama...............................
F l o r id a ...............................
G eo rg ia...............................
L o u is ia n a ..........................
Mississippi...........................
Tennessee..........................
UNADJUSTED
District Total...........................
Alabama...............................
F l o r id a ...............................
G eo rg ia...............................
L o u is ia n a ..........................
Mississippi...........................
Ten nessee..........................

=

I n d e x e s

May
_________________________________________1956
Construction contracts*...........................
Residential.............................................
O th e r.....................................................
Petrol, prod, in Coastal
Louisiana and Mississippi** . . 166
Cotton consumption**..................
96
Furniture store stocks*................. llO p
Turnover of demand deposits* . . 22.3
10 leading c it i e s ......................
24.0
Outside 10 leading cities . . . 18.8
April
1956
Elec. power prod., t o t a l* * ....................
Mfg. emp. by type
A p p a re l........................................ 157
C h e m icals................................... 133
Fabricated m e t a ls ...................... 154
F o o d ............................................ 113
Lbr., wood prod., furn. & fix. . . 84
Paper and allied prod.................160
Primary m e t a ls ...........................107
T e x tile s ........................................ 94
Trans, equip....................................183
r Revised.
p Preliminary.

Adjusted
April
May
1956 1955

May
1956
376
332
409

Unadjusted
April
May
1956 1955
316r
253
328r
248
306r
256

167
98
109r
21.1
23.3
17.4
Mar.
1956

151r
lOOr
106
21.5
23.1
18.2
April
1955

164
97
lllp
21.4
22.7
17.9
April
1956
275

160r
131
148
112
83
158
104
94
182

157r
129r
150r
112r
84r
153r
102r
96r
175r

159
134
153
109
84
159
108
94
188

170
149r
102r
100
116r
107
21.3
20.6
21.8
22.7
17.4
17.3
Mar.
April
1955
1956
280
230
160
134
152
110
84
158
105
95
189

158r
130r
149r
109r
84r
152r
102
96r
180r