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Monthly Review
Atlanta, Georgia

The Postwar Price Rise

March • 1959

higher now than they were at the end of World
War II. Because of this, there seems to be a widespread belief
that continuing price increases are inevitable in this day and age. A
close look at recent price history, however, reveals that the assump­
tions upon which this belief seems to be based are false. Contrary
to one popular notion, prices have not increased constantly since
World War II. Contrary to another notion that price rigidities have
caused the market place to lose its function as testing ground for
products seeking consumer acceptance, recent price history demon­
strates that prices still respond to the forces of demand and supply.
That prices have increased, of course, cannot be denied, as both
the wholesale and consumer price indexes show in the chart. At the
end of 1958, wholesale prices were about 70 percent higher than they
were at the first of 1946, and consumer prices were up about
60 percent. Just as the increases cannot be denied, neither should
they be minimized. The rises over the thirteen-year span since World
War II have been large and have meant corresponding decreases in
the value of the dollar used in wholesale and consumer purchases.
JL rices ar e m u c h

A ls o

in

t h is is s u e :

TEN BILLION DOLLARS
THE RURAL DEVELOPMENT
PROGRAM
SIXTH DISTRICT
BUSINESS HIGHLIGHTS
SIXTH DISTRICT
STATISTICS
SIXTH DISTRICT
INDEXES

Three Definite Periods of Increase
The increase in prices, however, has not been uninterrupted. Con­
sumer prices have spurted upward in three more-or-less defined
periods—from mid-1946 to mid-1948, from mid-1950 to mid-1953,
and from mid-1956 to mid-1958. Between the first two periods,
prices actually declined! Stability prevailed from late 1953 until midNation's Postwar Price Increase
due to increases in three periods, shown for consumer
prices by the shaded areas.
(1947-49 — 100)

P e rce n t

P e rce n t

pern
IBan/tgf



1946

1948

1950

1952

1954

1956

1958

1956 and has been the rule again over the last seven or
eight months. Generally, wholesale prices followed a
similar pattern, except they declined in 1951 and 1952.
Wholesale prices, moreover, started to rise before con­
sumer prices in the second and third periods of increase.
Advancing prices in the first two periods can be
traced largely to the effects of war. In the first period,
there were shortages of consumer goods because the
nation’s productive effort had been concentrated on
turning out military supplies for several years. Satisfac­
tion of consumer wants had to be postponed, building up
a huge potential demand for consumer goods. Moreover,
with wartime price controls and rationing to limit dollar
expenditures, personal savings increased sharply, thereby
building up the means for making the potential demand
effective. When Federal price controls were removed
after the end of the war, the free play of these forces
resulted in rapidly rising prices. Between May 1946 and
August 1948, consumer prices rose 33 percent.
A similar sudden increase in demand for goods and
services relative to the supply generated price advances
in the second period under review. War was again the
major stimulus. Hostilities in Korea aroused fears of
shortages and inflation and led to increased spending by
both consumers and businesses. The Federal Govern­
ment, of course, increased its spending for national secur­
ity purposes sharply. Again, a demand that was excessive
in relation to supply was responsible for a rise in con­
sumer prices. Between March 1950 and October 1953,
prices rose 15 percent, less than half the previous rise.
The third period of price rise was not associated with
war, and it began at an advanced stage of the recovery
from the 1953-54 economic recession. Confidence in
long-run economic growth had led to increased business
spending for new productive facilities. Consumers were
willing not only to spend current income, but to commit
future earnings for payment of automobiles and other
durable goods purchased on credit. Rising sales led
businessmen to add to their inventories. As these de­
mands increased relative to the economy’s capacity to
produce, prices again rose. This time, however, the rise
was still smaller, amounting to less than 8 percent be­
tween April 1956 and March 1958.

Two-Way Price Adjustments Common
Just as broad price movements over the last thirteen
years indicate responsiveness to changing demand and
supply conditions, divergent price movements in recent
months indicate that the price system is effecting changes
in the allocation of our economic resources. Since March
1958, when the wholesale price index reached its most
recent peak, the divergencies were concealed by the rela­
tive stability in the index for all commodities.
Among 70 industrial components, price changes from
March through December ranged from an increase of
30 percent for hides and skins to a decline of over 5
percent for wool products. Forty of the components
showed increases; 20 registered declines; and 10 re­
mained unchanged. The divergent price changes suggest
that the forces of supply and demand can, despite the
imperfections of the market, still bring downward as well
as upward price changes.



Lesson Clear
Whether we look at broad movements over the years or
detailed movements in recent months, it seems clear that
prices have responded to changes in demand and supply.
The general price increases since World War II have come
about as a result of an imbalance between excessive
monetary demand and a relatively short supply of goods
and services. However, the progressively smaller in­
creases in the three periods of price rises suggest that a
gradual long-run correction has been taking place in the
imbalance. If this is true, it seems clear that further price
increases will be inevitable only if aggregate monetary
demand continues to be excessive in relation to supply.
Fortunately, the American people are able to do
something about both demand and supply. Money, being
man-made, can be so controlled by men as to limit ag­
gregate monetary demands. The will to do so is, of course,
essential. At the same time, the tremendous increase in
this nation’s productive capacity accomplished in the
past provides ample evidence of our ability to do some­
thing about supply. Since the nation’s supply of money
is much easier to expand than its supply of goods and
services, to avoid inflation, as a nation we must discipline
ourselves to keep monetary demand in balance with our
capacity to produce at current prices.
P h ilip M. W ebster

Ten Billion Dollars
On December 31, 1958, for the first time in history,
the combined year-end statements of Sixth District mem­
ber banks showed their total deposits to be over $10
billion. Since the end of 1958 marked the tenth consecu­
tive year in which deposits were greater than those of the
preceding year, it marked a significant milestone in the
economic growth in that part of the South served by the
Federal Reserve Bank of Atlanta and its member banks.
Thus, this is an appropriate time for a glance backward
at the changes in the region’s banking since 1948.

A Bigger Business
One of our first observations is that banking in the
Sixth District has become a much bigger business during
the last decade. At the end of 1948, total deposits of
member banks amounted to but $5.7 billion; at the end
of 1958, they totaled $10.2 billion. On an average, de­
posits of individuals and businesses and governments in­
creased about $450 million each year, an impressive
growth record for any business.
But the growth of 80 percent in total deposits in ten
years does not tell the whole story of how banking has
become a bigger business. In 1948, the customers of all
commercial banks in the District were making with­
drawals from their demand deposit accounts in the
amount of $74 billion. By 1958, they had increased
this sum to $174 billion. Obviously, the use of checking
accounts increased more rapidly than deposits themselves.
The magnitude of the paper work involved in sorting
the checks, debiting the proper accounts, clearing the
checks, and receiving them as deposits is difficult to
• 2 •

Significant Changes at District Member Banks, 1948-58*

Sixth D istrict
M illion D ollars
1948
1958

Total Deposits
Total Loans
Business
Consumer
Real Estate
Security
Other
Total Investments
U. S. Securities
Other Securities
•End of year.

5,698 10,244
1,546 4,217
731 1,924
361 1,245
682
232
153
81
141
213
2,653 4,035
2,255 3,104
398
931

Sixth
D istrict

Percent Increase 1948-58

•
•
•
•
c
•
s
*
£
O
4
55 56 81 62
115 157 236 133
101 127 327 183

it,
80 49 147
173 120 361
163 106 307
245
194 119 414 147 221 134 104
89
51
52 34 91 47 29 49 40
38 20 73
33
18 30 28
134 88 219 141 115 100 106

**Includes only that part o f state in Sixth District.

conceive by one not versed in banking operations. No
one knows exactly how many pieces of paper are involved
in these transactions, but a reasonable estimate places
the number of checks drawn against all commercial banks
in the Sixth District in 1958 at something like 431 mil­
lion. Last year these banks probably processed 273 mil­
lion more checks than they did ten years ago. Last year
they had about five million demand deposit accounts on
their books; ten years ago they had over three million.
How did the member banks keep abreast of this larger
volume of business? First of all, there are more member
banks: At the end of 1948, there were 346 member
banks; at the end of 1958, 401. In addition, they have
established 196 additional offices or branches to meet
the needs of the growing urban centers. They also in­
creased the number of officers and employees. Member
banks at the end of 1948 had 14,327 officers and em­
ployees on their payrolls; by 1958, they had 28,520.

A Different Kind of Business
Not only is banking in the District bigger than it was a
decade ago, it is also a different kind of business. Keep­
ing and transferring funds of depositors is, of course, only
one function of commercial banking. A primary function
of the banks is to make credit available to individuals,
businesses, and governments. Banking is different today
because of the changes in the way this function is executed.
Banks now make more intensive use of their available
funds than they did ten years ago. Total combined in­
vestments and loans of the member banks in 1948
amounted to about 74 percent of their total deposits. At
the end of 1958, reports showed that loans and invest­
ments amounted to 81 percent of total deposits. Further­
more, in the process of making additional credit available,
bankers have placed more emphasis on granting credit to
the private borrower—businesses and consumers— and
placed less emphasis on making credit available to the
Federal Government. Total investments, consisting prin­
cipally of United States Government securities, amounted
to 47 percent of total deposits in 1948, whereas loans out­
standing came to but 27 percent. Since then, the relative
importance has been reversed. Total loans amounted to 41
percent of total deposits at the end of 1958 and invest­
ments to 39 percent. The banks had a total of $4.2
billion in loans outstanding at the end of last year.
Banks extend credit both when they make loans and
when they buy securities. However, the nature of the
work involved in granting credit through loans differs
greatly from that in making investments. Investments



are generally made in large amounts in negotiable secur­
ities, and if not in Government securities, in ones that
generally have been rated as to credit-worthiness by
security analysts. Loans, on the other hand, are likely to
be for smaller amounts for shorter terms, and the judg­
ment of credit-worthiness is made by the banker alone.
The business of making loans has also changed. The
most striking change we note from the statistics is the
greater importance of the consumer as a customer for
bank loans. Consumer loans are now just about four
times as important as they were ten years ago, and the
consumers, who at the end of 1958 owed the member
banks $1.2 billion, now rival as borrowers the business­
men, who owed $1.9 billion. Ten years earlier, consumer
loans were just about half as important as business loans.

A More Complex Business
Banking has become more complex in the last ten years
because, for one thing, with an estimated 118,000 business
loans on their books now, compared with 57,000 in 1948,
bankers must deal with more than twice as many busi­
nessmen. Complexity has also increased because bankers
have developed many specialized ways to meet the credit
needs of their business borrowers and to keep abreast of
the changes that have been taking place in the economy
of the South.
Figures on total consumer loans are evidence enough
of how much the bankers’ contacts have branched out
into the community. Making judgments about the credit­
worthiness of each of the numerous consumer borrowers
is a complex job in itself, even though most consumer
loans are fairly small and more of them are repaid through
regular instalments than are business loans. Keeping
abreast of the repayment records adds to the complexi­
ties, and finally, since so many consumer loans are made
to finance purchases of durable goods, bankers find it
necessary to keep abreast of economic developments that
influence the trend of consumer buying.
Moreover, even though the relative importance of
investments has declined, Sixth District member bankers
now have 52 percent more investments on their books
than they had ten years ago. They place more emphasis
on securities other than those of the Federal Govern­
ment. Different types of skill are thus required to man­
age an investment account than when most securities
bought were those of the Government. Much more skill
and careful attention are also needed for successful
management of the Government security account now
that the money market is free to react to changes in the
supply and demand for funds.

Bank Announcement
The Bank of Perrine, Perrine, Florida, a newly organ­
ized nonmember bank, opened for business on Febru­
ary 18, 1959, and began to remit at par for checks,
drawn on it when received from the Federal Reserve
Bank. Officers are George C. Pedersen, Chairman;
W. L. Mussett, President; and James J. Drury, Cashier.
Capital totals $300,000 and surplus and undivided
profits $101,223.
•3 •

The Rural Development Program
farm and nonfarm incomes and living standards in rural
areas chronically distressed or failing to share fully in
economic growth. Local participation and action within
counties or larger trade areas are emphasized. “The
basic principle,” says Harry J. Reed, coordinator of the
Rural Development Program, “is not new—it is based on
helping people help themselves.”
There are numerous reasons why many rural families
have not shared the national prosperity, but there are
several major ones. Too often farm families are illequipped for farming by present standards. Many farms
are too small, whether they are measured by land, by
labor used, or by investment. Often the families are in­
adequately trained for farming or they lack interest or
they are too old to farm intensively. Many have apti­
tudes and interests not satisfied by farming; yet they feel
frozen in because they were born on farms and learned
no other work and therefore they believe there are no
alternative jobs available to them.

Too many rural families are stuck in an economic eddy
while the main stream of national prosperity flows swiftly
past them. Facts and figures on this nation’s 4.8 million
farms in 1954, the latest year for which data are avail­
able, reveal a widespread economic and social problem.
About 2.7 million of those farms had gross sales totaling
less than $2,500 annually. Such farms in the Sixth Dis­
trict states numbered 735,000, or 79 percent of all farms
there. Heavily weighted by receipts on many small farms,
net farm income per person in Alabama, Georgia,
Louisiana, Mississippi, and Tennessee in 1957 averaged
from $254 to $363, against $569 in the United States.
Not only do many farm families earn too little, but too
often other people depending partly on farmers’ incomes
fail to have adequate earnings. In the six District states,
where farming still has considerable weight, total per­
sonal income per capita averaged $1,458 in 1957; the
average for the United States was $2,027.
With the income gap between rural and urban people
wide and persistent, the public began to demand that
efforts be made to narrow it. Thus, the Secretary of
Agriculture in 1954 asked experts in agriculture, edu­
cation, industry, and labor to study the problem. Follow­
ing this study, President Eisenhower recommended in
1955 that Congress establish the Rural Development
Program, a program embracing both town and farm
people in rural areas. Congress endorsed the program
and passed legislation to implement it.
Broadly speaking, the goal of the program is to lift

A Many Sided Program
A rural development program must necessarily be many
sided because of the very nature of the problems involved.
Some farmers can build up their farm earnings, but the
majority in underdeveloped areas must look to off-farm
jobs for more income. To provide the needed jobs may
take special efforts by industrial development corpora­
tions, local civic clubs, and other groups. Guidance and
counseling about jobs may be best supplied through a

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• 4 •

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coordinated labor marketing service. Young people especi­
ally can benefit from advice and guidance in choosing
work which may or may not be associated with farming.
Finally, people not only farm better but learn more
readily and adjust more easily to other work if they are
healthy and energetic. Better health standards, of course,
call for fighting malnutrition and disease. Coupled with
and supporting these efforts is the building of spiritual
strength in people to give them a sense of purpose and
direction. Local churches, therefore, are vital for fully
implementing rural development.
An energetic, trained, and resourceful people can
obtain from their resources benefits not envisioned by
apathetic, ill-trained, ill-fed, ill-housed, uninspired people.
Thus, rural development depends on inciting people to
act in their own interest. They can husband their re­
sources, improve them, and reorganize them to reach
new goals. Meanwhile to help people gain these ends,
service and educational agencies like the agricultural
extension service may have to redirect their efforts.
Private and public agencies also may have to cooperate
in solving problems too big for one agency alone.

Organization of the Program
Pushing forward on many fronts in rural development
not only requires a guiding philosophy but a coordinated
effort by the nation, the state, and the local community.
To coordinate the current program, committees exist
at three levels: (1) a national committee for rural de­
velopment, whose chairman is True D. Morse, Under­
secretary of Agriculture; (2) state committees for rural
development; and (3) local or county committees.
Specialists agree that the program should be tested in
pilot counties to expose strengths and weaknesses and
to give it direction. The state committees selected the
test counties; all told there are now 102 pilot counties,
twenty of which are in Sixth District states. Committee
members in the pilot counties were chosen by local
people. Usually 15 to 20 people in the community were
asked to serve, and usually the county farm agent was
appointed Secretary. No one doubts that the county com­
mittee is the key one in the program. Upon it falls the
task of inventorying local resources, sizing up local needs,
and inspiring people to improve their status.
County committees can request aid from Federal, state,
and local agencies. Five Federal departments—Agricul­
ture, Interior, Commerce, Labor, and Health, Education,
and Welfare— and the Small Business Administration
offer them technical assistance. Federal agencies may
conduct research, supply bulletins and printed helps,
and furnish experts in many fields. Community workers
also call for aid from their state health departments, the
forestry and game commissions, the extension services, the
colleges, and other agencies. Local farm specialists sup­
port committee activities.
No great increase in the Federal budget is necessary
for the success of the program, although the USDA’s ap­
propriation was stepped up $2.6 million for fiscal 1958.
But, long-range benefits can stem from recent Federal
legislation in several fields: (a) the lending power of the
Small Business Administration has been broadened to pro­
vide a source of investment capital for small businesses;




(b) the National Defense Education Act of 1958 provides
qualified rural and urban youths with financial aid for at­
tending college; (c) the national Social Security program
has been broadened to cover farmers; (d) the Farmers
Home Administration has been given authority to make
loans to farmers for repairing and building homes and
other buildings.

The Program in Action
Widespread, rapid progress cannot be expected from a
program as complex as the Rural Development Program.
Its full impact may not be felt for decades. Yet in the
three years since its inception notable changes have oc­
curred in the test counties. People have been stirred to
work at rural development. To evaluate the program at
this point, questions about the pilot counties were asked:
What did they do to get started in the program? What
major problems did they find? What did they decide to do
about them? Are they actually solving some problems?
When these questions were asked in Twiggs County,
a test county in central Georgia, the answers showed
what can be accomplished in the first stages of the pro­
gram. With 630 farms in the county and almost 60 per­
cent of them obtaining less than $1,200 annually from
marketings, a need for development was obvious. A
county committee was formed in 1956. Members were
drawn from an existing agricultural council and from
local civic clubs, garden clubs, church groups, and house­
wives. Georgia’s state committee attended the first meet­
ing of the Twiggs County committee to discuss the pro­
gram’s goals and the support the state could give.
The local committee then appointed five subcommit­
tees: Health, Religion, Business and Industry, Educa­
tion, Agriculture. These were asked to survey the county
resources. People on the health subcommittee, for exam­
ple, secured facts on garbage disposal pits, vaccination
of dogs against rabies, polio shots, tests of the family
water supply, screens on farm homes, and the like. Some
subcommittees looked for facts in local records at the
office of the County Soil Conservation Service and other
offices. The Home Demonstration Clubs and the Georgia
Power Company cooperated in an industrial survey.
Each committee studied the facts and found numerous
problems in the process: Families were living under
inadequate health conditions, had little or no planned
recreation, and were using too few acceptable farm prac­
tices, and so on. After the analysis each subcommittee
set reasonable goals for 1961. Only 45 percent of the
farm homes were screened in 1956; the goal for 1961
was set at 75 percent. Standards were not placed so
high that people would become discouraged, but having
a plan for action based on needs and goals did help focus
attention on specific tasks.
People in Twiggs County worked especially hard on
several major problems. They saw that for some farmers
who were not reaching their potential in yields from crops
and livestock, simple changes in farm practices could step
up yields. They set up 28 demonstrations on farms to
show how higher yields could be obtained. Within three
years both yields and farm income rose markedly. People
saw that too few homes in towns were landscaped; again
• 5 •

demonstrations were established and the townspeople
urged to watch and learn. Planned recreation in the
county was inadequate, especially in rural areas. The
rural development committee set up a program; a record
player and records were bought with funds given by a
civic club, and for two years five well-attended community
dances have been held each month in the county.

Overcoming Obstacles
People like those in Twiggs County can use their own
resources for developing their areas, but sometimes they
are confronted with obstacles. Local leaders in farming
and other fields, for example, may resist changes. Rural
families may lack desire to change. Such apathy is not
necessarily bred into people; too often it stems from their
environment—from ill-health, defective homes, insuffi­
cient education, hopelessly poor land, no other jobs at
hand. Leaping such hurdles to build confidence can be
difficult when families needing help shy away from group
activity. Many have never had the advantage of profes­
sional advice and counsel and are not easily approached
by a “government” man or woman. The values and goals
some rural people hold high may not fit in with those of
their neighbors and townspeople; the two groups must be
brought into closer communion. Thus, motivating people
—getting them to know they must act individually and
collectively to better themselves—is the big task.
Finally, people in Twiggs County have learned that
rural development often requires action beyond the county
line. To provide off-farm jobs in factories for people in
Twiggs County, for example, requires industrial develop­
ment in the nearby city of Macon or possibly in adjoining
counties which may be better adapted to new industries.
Similarly, establishing hospitals and other health services
often requires cooperation between several contiguous
counties. Sometimes counties must join in creating a
Department Store Sales and Inventories*
_______________ Percent Change _____________
Sales
Inventories
Jan. 1959 from
Jan. 31,1959 from
Dec.
Jan.
Dec. 31
Jan. 31
Place
1958
1958
1958
1958
+11
—2
H l4
A LA B A M A ........................ — 59
B irm in gh am ................. — 57
+1 0
5
__17
M o b ile ........................ — 60
+11
M ontgom ery................. — 61
+6
F L O R ID A ........................ — 50
+8
+8
-4Is
Daytona Beach
.............. — 53
+1 4
Ja ck so n v ille ................. — 61
+1 2
—7
__ig
Miami A r e a ................. — 48
+4
+1 6
j-iq
M ia m i.....................— 49
+1
+
Orlando........................ — 43
+21
St. Petersburg-Tampa Area . — 50
+8
-ill
'i
G E O R G IA ........................ — 57
+9
13
T ,
A tla n ta * * .....................— 56
+8
+5
Tt
A ugusta........................ - 6 .
+7
^
+b
C olu m b u s.....................— 60
+8
+4
_12
M a c o n ........................ — 63
+1 6
-4-2
_i
Rom e**........................ — 63
+2 5
Sa v an n a h .....................— 59
+9
L O U IS IA N A .....................— 53
+7
_ i
S
Baton R o u g e ................. — 59
+7
3
. -.c
New O rle a n s................. — 51
+1 0
j .0
-in
M IS S IS S IP P I.....................— 56
+1 5
__c
£ < *“." ........................ - 5 5
+13
+8
_7
Meridian**
................. — 61
4-14
T E N N E S S E E .....................— 62
+11
’i
S
Bristol-KingsportT
1
Johnson City**
. . . .
_69
-j-2
f.
n
Bristol (Tenn. 4 Va.)**
. — 67
4.3
_ Ii 4
L
Chattanooga................. ..... 59
J q
8
K n o x v ille .....................__6i
T 10
,
D IS T R IC T ................. ... . - 5 6
+9
+f
-?
•Reporting stores account for over 90 percent of total District department store salesIn order to permit publication of figures for this city, a special sample has been
i ^ 1 , 0* coined exclusively to department stores. Figures for non5
department stores, however, are not used in computing the District percent changes




single market outlet for farm produce. Thus, some pilot
counties can make real progress only as their efforts are
linked with those of people in a larger economic area.
Despite snags preventing rapid progress in rural de­
velopment, leaders in Twiggs County feel confident. The
people in their county have three years of experience
with the Rural Development Program and are now build­
ing up momentum in it. They will surpass many county
goals before 1961.
A rthur
KantneI!
Debits to Individual Demand Deposit Accounts
(In Thousands of Dollars)

Jan.
1959
ALABAMA
Anniston . . . .
Birmingham
. .
Dothan . . . .
Gadsden . . . .
Mobile . . . .
Montgomery . .
Selma* . . . .
Tuscaloosa* . .
Total Reporting Cities
Other Citiesf . . .
FLORIDA
Daytona Beach* .
Fort Lauderdale* .
Gainesville* . .
Jacksonville . .
KeyWest* . . .
Lakeland* . . .
Miami . . . .
Greater Miami* .
Orlando . . . .
Pensacola . . .
St. Petersburg
Tampa . . . .
West Palm Beach*
Total Reporting Cities
Other Citiesf . . .
GEORGIA
Albany . . . .
Athens* . . . .
Atlanta . . . .
Augusta . . . .
Brunswick . . .
Columbus . . .
Elberton
. . .
Gainesville* . .
Griffin* . . . .
LaGrange* . . .
Macon . . . .
Marietta* . . .
Newnan . . . .
Rome* . . . .
Savannah . . .
Valdosta
. . .
Total Reporting Cities
Other Citiesf . . .
LOUISIANA
Alexandria* . .
Baton Rouge . .
Lafayette* . . .
Lake Charles . .
New Orleans . .
Total Reporting Cities
Other Citiesf . . .
M ISSISSIP P I
Biloxi-Gulfport* .
Hattiesburg
. .
Jackson . . . .
Laurel* . . . .
Meridian . . .
Natchez* . . .
Vicksburg . . .
Total Reporting Cities
Other Citiesf . . .
TENNESSEE
Bristol* . . . .
Chattanooga . .
Johnson City* . .
Kingsport* . . .
Knoxville . . .
Nashville . . .
Total Reporting Cities
Other Citiesf . . .
SIXTH DISTRICT .
Reporting Cities .
Other Cities* . .
Total, 32 Cities . .
UNITED STATES
344 Cities . . .

Dec.
1958

Jan.
1958

Percent Change
Jan. 1959 fran
Dec.
Jan.
1958
1958

+0
—
2
+4
+11
—
3
—
6
—
2
+1
—
2
—
1
—
1
—
1

40,849
786,354
33,852
41.805
283.036
166,291
24,284
52,440
1,428,911
777,086

40,820
798,797
32,676r
37,710r
290,644
176,959
24,708
51,818
l,454,132r
788,276r

36,257
743,387
33,232r
35,133r
271,553
135.265
23,414
47,802
l,326,043r
653,501r

60,864
235.036
41,421
801,852
17,641
84.508
904,811
1,406,458
259,916
90,530
247,582
437,546
151,426
3,834,780
1,709,209

61.525
236,292
38,658
835,357r
16,985
79,621
921,010
1,374,300
253,245r
89,903
241,517r
463,817r
151,499
3,842,719r
1,743,316r

63,077
230,027
38.560
801,094r
16,507
72,1%
800,683
1,280,337
210,077r
84,571
220,979r
394,570r
138,770
3,550,765r
l,520,309r

63,887
37,337
1,900,324
101,304
25,241
100,493
9,155
49,105
18,478
21.805
119,642
33,068
19,622
41,812
193,021
32,317
2,766,611
884,287

69,383
40,528
2,079,350r
112,601 r
25,853
113,050
8,960
50,347
21,050
20,862
140,415
29,924
18,201
49,322
211,642
31,957r
3,023,445r
912,428r

60,510
36,835
l,799,539r
92,154r
23,819
99,645
8,643
48,057
16,382
23,304
111,519
28,132
19,548
41,886
177,870
28,694r
2,616,537r
838,170r

—
8
—
8
— 9
—
10
—
2
—
11
+2
—
2
—
12

78,191
272,635
70,895
99,168
1,352,173
1,873,062
644,847

75,016
281,501r
65,541
101,230
1,368,809
1,892,097r
633,667r

73.560
287,956r
61,909
94,779
1,357,998
l,876,202r
608,259r

+4

48,568
35,045
297,888
26,608
49,055
23.526
20,743
501,433
284,861

38,978
33,024
204,982
a , 715
36,437
23,192
19,353
377,681
225.265

+13
+6
+2
+19
+4
+23
+4
+10
+8
+19

45,782
36.509
285,451
27,532
41,905
23,837
19,868
480,884
242,742
43,527
356,942
42,910
79,456
243,284
721,045
1,487,164
531,119
16,660,702
11,871,412
4,789,290
10,088,410
221,925,000

46,078
338,557
45,353
79,682
276,785
779,943
1,566,398
522,749
17,165,521r
12,280,224r
4,885,297r
10,543,423r
238,975,000

37,923
323,037
41,169
70,379
219,015
626,313
1,317,836
513,704
15,424,269r
ll,065,064r
4,359,205r
9,391,636r
212,862,000

+7
— 4
+4

+6
—
2
+2
+3
+1
+3
—
6
—
0
—
0

+5
— 15

+11
+8

— 15

— 9

+1
—
9
—
3
—
3
+8
—
2

+2
+7
+0
+7
+17
+10
+12
+11
+j

+12
+6
il
iS
+1
+2
■a
+18
3
+9
+13
+6

a

— 1
— 1

3
-0

+4

+17
+39

+2

—
4

+4

+3
— 15

+1

—
15
+5
—
0
—
12
—
8
—
5
+2
—
3
—
3
— 5

—2
—

7

+*

+
5
+
15
+W
+i
+
13
+U
+W
£
$
+4

•Not included in total for 32 cities that are part of the National Bank Debit Series.
fEstimated.
rRevised.

•6 *

Sixth District Indexes
Seasonally Adjusted (1947-49 = 100)
DEC.

SIXTH DISTRICT
Manufacturing Employment

. .

.

Chemicals***.............................
Fabricated M e t a ls ....................
Food............................................
Lbr., W
ood Prod., Fur. & Fix.
Paper & Allied Products . . .
Primary M e t a ls .........................
Transportation Equipment . . .
Manufacturing Payrolls
. . . .
Cotton Consumption**....................
Electric Power Production** . . .
Petrol. Prod, in Coastal
Louisiana & Mississippi**
. .
Construction Contracts* . . . .
Residential..................................
All O t h e r ..................................
Farm Cash Receipts........................
Crops ............................................
Liv e sto c k ..................................
Dept. Store S a le s * / * * ....................
Atlanta .......................................
Baton R o u g e .............................
Birm ingham .............................
Chattanooga.............................
Jackson .......................................
Jackso nville.............................
K n o x v ille ..................................
M a c o n .......................................
M ia m i.......................................
New O r le a n s .............................
Tampa-St. Petersburg . . . .
Dept. Store Stocks*.........................
Furniture Store Sales*/* *
. . .
M
ember Bank Deposits* . . . .
Member Bank L o a n s * ....................
Bank D eb its*..................................
Turnover of Demand Deposits* . .
In Leading C itie s .........................
Outside Leading Cities . . . .
ALABAMA
Nonfarm Employment . . . .
Manufacturing Employment . .
Manufacturing Payrolls . . . .
Furniture Store Sales . . . .
Member Bank Deposits . . . .
Member Bank Loans....................
Farm Cash Receipts....................
Bank D e b it s ..............................
FLORIDA
Nonfarm Employment . . . .
Manufacturing Employment . .
Manufacturing Payrolls . . . .
Furniture Store Sales . . . .
Member Bank Deposits . . . .
Member Bank Lo an s....................
Farm Cash Receipts....................
Bank D e b i t s ..............................
GEORGIA
Nonfarm Employment . . . .
Manufacturing Employment . .
Manufacturing Payrolls . . . .
Furniture Store Sales . . . .
Member Bank Deposits . . . .
Member Bank Loans....................
Farm Cash Receipts....................
Bank D e b i t s ..............................
LOUISIANA
Nonfarm Employment . . . .
Manufacturing Employment . .
Manufacturing Payrolls . . . .
Furniture Store Sales* . . . .
Member Bank Deposits*
. . .
Member Bank Loans* . . . .
Farm Cash Receipts....................
Bank D e b its*..............................
MISSISSIPPI
Nonfarm Employment . . . .
Manufacturing Employment . .
Manufacturing Payrolls . . . .
Furniture Store Sales* . . . .
Member Bank Deposits*
. . .
Member Bank Loans* . . . .
Farm Cash Receipts....................
Bank D e b its*..............................
TENNESSEE
Nonfarm Employment . . . .
Manufacturing Employment . .
Manufacturing Payrolls . . . .
Furniture Store Sales* . . . .
Member Bank Deposits*
. . .
Member Bank Loans* . . . .
Farm Cash Receipts....................
Bank D e b its* ..............................

.

.

118

. .
. .
. .
. .
. .

181
Ill
76
159
100

. . 226
. . 194
. .
78
. . 295
.
.

.
.

175
259

.
.
.
.
.

.
.
.
.
.

119
92
166
170
156

. .
. .
. .
. .
. .

131
145
117
133
155

.

JAN.

MAR.

APR.

AUG.

SEPT.

OCT.

NOV.

DEC.

JAN.

134
117
167
132r
181
114
75
158
96
87
215
187
82
317

FEB.
133
115
167
131r
177
113
74
156
91
86
200
182
79
325

133
115
165
128r
174
110
72
157
91
86
194
183
79
311

132
114
161
129r
176
110
72
158
90
85
187
182
74
306

132
113
167
130r
176
109
72
157
93
84
172
183
75
297

133
115
170
129r
183
109
72
158
91
84
201
192
80
312

133
115
166
129r
186
111
73
157
90
85
198
1%
81
312

133
115
164
129r
183
108
73
158
89
85
212
198
83
313

134
116
166
127
182
108
75
157
90
86
211
197
89
311

134
116
166
128r
180
109
76
159
95
86
192
195
87
314

134
116
168
129r
177
108
76
158
91
86
202
200
87
316

134
116
168
129r
175
109
75
158
93
86
206
201 r
84
330

134
117
174
131
178
112
75
159
92
86
203
200
91
n.a.

169
272r
290r
257
119
97
161
159r
151
181
123r
147r
109
127
146
139
237r
132
191 r
205r
153r
162
269
244
146
156r
113r

170
309r
316r
303
118
92
156
147
147
171
111
128
99
116
128
137
227
135
174
199
125
163
269
233
143r
154r
lllr

168
317r
297r
333
121
87
160
158
157
175
132
141
97
122
139
148
233
125
186
193
132
166
270
230
138r
149r
109r

162
324r
315r
332
150
134
174
156
153
164
117
136
99
108
141
151
242
135
181
190
138
168
273
237
140r
159r
105r

164
375r
338r
406
157
153
178
166
154
172
130
145
107
122
147
159
244
137
203
191
143
170
276
226
140r
154r
lllr

167
294r
381r
405
165
146
184
176
169
199
129
144
106
126
137
165
259
145
202
191
139
174
279
233
144r
168
104r

170
427r
377r
468
134
90
184
173
168
185
127
159
111
127
139
164
268
141
207
192
139
170
278
240
148r
165r
HOr

176
397r
413r
384
136
118
182
183
183
187
147
161
124
138
156
183
285
147
219
192
153
176
281
229
147r
165r
113r

187
393r
421r
371
104
82
185
167
158
179
133
150
107
129
151
147
250
140
209
198
145
175
282
256
146r
161
116r

190
364r
433r
308
112r
84r
217r
165
154
180
131
154
111
135
146
153
258
144
209
202
145
175
285
249
142r
149
105r

190
333r
375r
298
123
99
216
170
161
214
129
163
126
136
155
158
230
144
214
207
152
180
291
242
139r
146r
102r

201
309
367
262
130
92
211
176
162
204r
138
156
124
142r
163
158
256
148
212
205r
148r
179
292
272
150r
161
121r

192
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
173p
164
194p
136p
162
123
143
161
161
247p
145p
207
202p
161p
181
298
264
144
153
114

MAY

JUNE

JULY

.

255

. .
. .
. .
. .

207
211
154
161

.
.
.

.
.
.

149
160
113

.
.
.
.
.
.
.

.
.
.
.
.
.
.

121
107
173
131
139
222
120

122
105
170
133r
140
224
120
205

120
103
162
113
140
223
113
197

120
102
165
122
140
224
128
199

119
103
162
134
145
226
152
204

119
104
166
135
146
230
142
200

119
105
174
128
150
231
147
206

119
106
175
130
150
235
143
209

119
104
177
145
154
233
130
207

119
102
174
138
152
234
97
230

121
106
181
136
153
239
106r
220

121
107
184
136
158
246
101
214

121
103
178r
131
155
242
111
230

121
104
180
147p
155
248
n.a.
229

.
.
.
.
.
.
.
.

.
.
.
.
.
.
.
.

177
177
288
179r
212
425
163
345

176
171
278
156r
212
425
162
344

176
171
273
142
211
426
178
326

175
168
264
146
215
431
151
319

176
167
271
153
216
444
239
337

177
171
280
157
221
441
249
322

180
174
292
155
227
447
308
354

182
176
301
156
225
449
214
361

182
182
307
172
233
456
206
343

183
181
311
171
234
457
212
386

183
182
315
153
235
463
162r
391

182
184
311
170
241
477
147
360

180
180
304
167r
241
477
162
409

182
178
306
169p
242
485
n.a.
376

. .
. .
. .

128
117
190

. .
. .
. .

142
213
142

128
115
183
137
142
213
140
222

126
114
177
113
144
212
141
210

126
113
177
127
147
211
150
202

125
111
171
121
147
212
150
212

124
108
167
139
148
213
157
207

125
112
182
136
152
216
167
212

126
112
189
133
146
213
129
219

126
113
192
154
154
212
157
212

127
114
189
147
155
219
158
235

127
113
184
151
154
223
104r
223

128
114
198
141
158
226
124
217

127
114
196r
153r
158
227
153
242

128
114
192
149
159
230
n.a.
235

.
.
.
.
.
.
.

.
.
.
.
.
.
.

132
99
172
223
153
270
101

131
98
174r
195r
153
269
116
205

131
97
169
178
155
270
113
193

130
96
168
193
156
269
111
209

129
96
171
171
154
269
96
206

129
95
169
181
157
271
115
203

127
93
166
178
159
272
147
211

127
93
163
177
153
264
143
208

127
93
168
189
157
273
109
200

127
93
167
181
155
265
72
234

127
94
163
166
152
268
99r
213

127
95
171
197
156
277
114
197

127
94
166r
1%
159
274
109
227

128
93
170
184p
163
284
n.a.
208

.
.
.
.
.
.
.

.
.
.
.
.
.
.

125
122
210
119
'57
299
82

126
121
210r
104
164
303
100
177

125
121
207
86
166
303
92
175

125
122
226
95
172
304
115
172

125
123
221
96
185
308
124
182

125
123
221
107
186
334
148
190

124
123
226
113
186
337
145
191

124
125
230
101
184
367
138
207

125
127
238
123
192
352
100
200

127
128
240
101
194
359
59
219

127
129
239
80
197
359
99r
208

128
131
240
107
198
363
129
210

127
129
239r
133
195
369
122
235

129
128
244
114
197
361
n.a.
212

.
.
.
.
.

.
.
.
.
.

118
116
186
114
147

.

.

98

119
116
179
107r
148
239
92
205

117
114
179
89
149
238
85
1%

118
114
181
101
155
239
107
197

117
112
178
106
156
242
116
197

117
112
179
109
158
245
103
197

117
113
181
104
161
248
113
199

117
113
186
105
156
243
114
201

117
113
192
105
159
250
112
200

118
114
190
103
158
247
77
214

118
115
186
103
159
251
114r
216

118
115
186
112
161
251
114
209

118
115
195r
113
162
256
100
228

118
116
199
111
165
262
n.a.
225

i.
n.a. Not Available.
p Preliminary.
r Revised.
Sixth District area only. Other totals for entire six s
Daily average basis.
***Revisions reflect new seasonal
Nonfarm and mfg. emp. and payrolls, state depts. of labor; cotton consumption, U. S. Bureau Census; consti
of Mines; elec. power prod., Fed. Power Comm. Other ndexes based on data collected by this Bank. All indexes




ion contracts, F. W. Dodge Corp.; petrol, prod., U. S. Bureau
culated by this Bank.

•7 •

S I X

T

H

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

N ,o n f a r m
M fg. P a yro ll*

Mfg. Employment




employment in the Sixth District continued relatively
unchanged in January, but factory payrolls declined slightly.
Consumer spending at department and household appliance stores
dropped from December’s advanced level, but sales at furniture
stores rose sharply. Bank debits, an indicator of total spending,
moved downward. M ember bank loans and deposits, however,
rose appreciably.

Nonfarm employment, seasonally adjusted, showed relatively little change
in January, continuing at about the same level as in the preceding four months.
Both manufacturing and nonmanufacturing employment increased
slightly, but not enough to change the total index appreciably. Factory pay­
rolls/ after equaling the pre-recession record in December, dropped slightly
in January because of a drop in average w eekly earnings. The rate of
insured unemployment changed little from December to January, after
allowance for seasonal variation.

Cotton textile output, as measured by seasonally adjusted cotton consump­
tion, rebounded sharply in January, following some decline in late 1958.
Crude oil production in Coastal Louisiana and Mississippi dropped back to
about the November level after having increased steadily for a number of
months Steel mill operations improved substantially in January, with further
sharp gains occurring in February. The three-month average of construction
contract awards declined further in December. Electric power production
advanced to a new record as 1958 ended.
Spending in the Sixth District declined somewhat during January, but
remained at a high level. Seasonally adjusted bank debits dropped slightly from
the record level attained during the Christmas season, but stayed well above
earlier months. Department store sales were also off slightly from Decem­
ber’s advanced level, but sales at District furniture stores rose to the highest
level in over three years. Household appliance store sales declined more
than they usually do in January.
Consumer instalment credit outstanding at District commercial banks
rose more than seasonally, mostly because of a sharp rise in loans to finance
automobile purchases. Savings in the form of time deposits declined more
than is usual for this period.
Farm marketings in the Sixth District states declined from year-ago levels
during January because of a drop in livestock marketings and a smaller carry­
over of 1958 crops. Farm prices rose above the December level primarily
because of increases in beef cattle, broilers, milk, corn, rice, and soybean
prices. Farm employment declined slightly, but remained above the level in
the corresponding period last year.
Member bank deposits, seasonally adjusted, increased slightly in January,
as banks in all District states registered increases. Member bank loans,
however, rose sharply, with gains reported by banks in all states but Missis­
sippi. Investments at all commercial banks also rose. The increase in invest­
ments reflected primarily an accumulation of U. S. Government securities by
banks outside leading cities. In February, total loans outstanding at banks
in leading cities rose more than in the corresponding period a year ago,
fhpFpHer*,? pa pickuP in ,co" s” ," er loans. Member bank borrowings
from the Federal Reserve Bank of Atlanta increased