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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 3 f a f e r a [ \ % s e r w B a n k ^ t f a n t a D I S T R I C T B U S I N E S S H I G H L I G H T 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