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MONTHLY
REVIEW
fy M ti

FED ERA L R ESER V E



BANK
M ARCH

1970

OF A T LA

I n t e r n a t i o n a l L e n d in g A g e n c i e s :
I n s t r u m e n t s f o r E c o n o m ic D e v e lo p m e n t
S in c e

th e

fin a n c ia l

end

of

a g e n c ie s

W o r ld
have

W ar

II,

in te r n a tio n a l

1914.

th e ir

expanded

S y s t e m , c o o r d in a t io n o f m o n e ta r y p o lic y a m o n g

r o le

in

D e s p it e

th e

d e c e n tr a liz e d

n a tu r e o f

th e

w o r ld e c o n o m ic a ffa ir s . B e c a u s e o f t h e n u m e r o u s

th e

liq u id it y a n d e x c h a n g e c r is e s o f t h e la s t d e c a d e ,

B oard

th o se

n e c e s s a r y to p r e v e n t t h e in d iv id u a l p a r ts o f th e

a g e n c ie s

te r n a tio n a l
o c c u p ie d

th e

n a tio n a l
th e

p r im a r ily

m oney

fo r

in v o lv e d

w ith

p a y m e n ts

Fund

and,

In te r n a tio n a l

to

th e in ­

sy ste m

have

th e

In ter­

so m e

e x te n t,

s p o tlig h t— e s p e c ia lly

M o n eta ry

B ank

and

S e ttle m e n ts .

O th e r

in te r n a tio n a l a n d r e g io n a l in s t itu t io n s c o n c e r n e d
m a in ly

w ith

lo n g e r - te r m

tw e lv e
of

S y stem

F ederal

R eserve

B anks

and

th e

d e v e lo p e d .

G overnors so o n

T h is

w as

fr o m w o r k in g a t c r o s s p u r p o s e s in in f lu ­

e n c in g fin a n c ia l a n d e c o n o m ic a c t iv ity . T h is c o ­
o r d in a tio n
O pen

g r a d u a lly

M arket

e v o lv e d

C o m m itte e ,

in to

w h ic h

th e

F ederal

w as

le g a lly

fo r m a liz e d b y th e B a n k in g A c t o f 1 9 3 5 .
S im ila r ly ,

f in a n c in g o f e c o n o m ic

in

th e

in te r n a tio n a l

sp h ere,

th e

d e v e lo p m e n t h a v e a ls o e x t e n d e d th e ir r o le in th e

w r e n c h in g e f f e c t s o f tw o w o r ld w a r s a n d a s e v e r e ,

w o r ld e c o n o m y . T h e s e in s t it u t io n s h a v e r e c e iv e d

w o r ld w id e

e c o n o m ic d e p r e s s io n o n in te r n a tio n a l

le s s a t t e n t io n in m o s t a d v a n c e d in d u s tr ia l c o u n ­

tra d e

p a y m e n ts

tr ie s . T h i s a r t ic le f o c u s e s o n

in te r n a tio n a l

m o n e ta r y

s ta b iliz e

w o r ld

th e g e n e r a l n a tu r e

o f th e m o s t im p o r ta n t o f t h e s e le n d in g

in s titu ­

and

th e

m e m b e r s h ip

le d to

th e

c r e a tio n

in s t itu t io n

p a y m e n ts

in c lu d e s

in

sy ste m .

m o st

of

1944

an
to

B eca u se

tio n s a n d o n t h e m a jo r d iffe r e n c e s in th e ir a c t iv i­

its

tie s .

f r e e w o r ld , t h is i n s t it u t io n h a s p la y e d a k e y r o le

n a tio n s

of

th e

in t h e o p e r a t io n o f t h is s y s t e m .

R a tio n ale for Len d in g In stitu tio n s

O u ts id e th e fr a m e w o r k o f th e I M F , r e p r e s e n ta ­

T h e e v o lu t io n o f th e in s t itu t io n a l fr a m e w o r k o f

t iv e s o f c e n tr a l b a n k s in m a jo r fin a n c ia l c o u n tr ie s

th e in te r n a tio n a l fin a n c ia l s y s t e m

have

in

its

d e v e lo p m e n t

fin a n c ia l
years

of

th e

h a s p a r a lle le d

e v o lu t io n

sy ste m .

W ith in

p e r io d ic

fin a n c ia l

th e

of

th e

U n ite d

c r is e s

le d

U.

S.

S ta te s,
to

e s ta b lis h m e n t o f th e F e d e r a l R e s e r v e S y s te m

th e
in

a ls o

been

a u s p ic e s o f th e

m e e t in g
B ank

m o n th ly

fo r

under

In te r n a tio n a l

th e

S e ttle ­

m e n ts . H e r e , t h e y h a v e m u tu a lly d is c u s s e d a n d ,
to a d e g r e e , c o o r d in a te d
o p e r a tio n s h a v e b e e n

p o lic y .

lim ite d

H ow ever,

jo in t

to s p e c ia l c ir c u m ­

s t a n c e s s u c h a s t h e v a r io u s s t e r lin g c r e d it p a c k ­

M o n th ly R eview , Vol. L V , No. 3. Free subscription
and additional copies available upon request to the
Research Departm ent, Federal Reserve B a n k of
Atlanta, Atlanta, G eorgia 30303.
38




a g e s d e s ig n e d

to s u p p o r t t h e B r it is h

pound.

F o llo w in g th e c r e a tio n o f t h e F e d e r a l R e s e r v e
S y s t e m , it w a s r e c o g n iz e d t h a t e v e n w ith a s t a b le

M O N TH LY

R E V IE W

m o n e ta r y a n d c r e d it s y s t e m , c r e d it m a y n o t a l­

te r n a tio n a l B a n k fo r R e c o n s tr u c tio n a n d D e v e l ­

w a y s flo w

o p m e n t, o r t h e W o r ld B a n k a s i t is m o r e c o m ­

in w a y s th a t a c h ie v e th e m o s t d e s ir ­

a b le s o c ia l o r e c o n o m ic r e s u lts . T h is m a y o c c u r

m o n ly c a lle d . C lo s e a f f ilia t e s o f t h e W o r ld B a n k

fo r a t le a s t tw o

are

rea so n s:

F ir s t, b e c a u s e

o f im ­

p e r fe c tio n s in fin a n c ia l m a r k e ts , s o m e e c o n o m ic
se c to r s

th e

and

m ay

s u f f ic ie n t

se p a r a te ,

o f r e tu r n in t h e s e s e c to r s , o r t h e la c k o f a d e q u a te

W o r ld

in s t itu t io n s

be

a b le

to

fo r c h a n n e lin g

o b ta in

fu n d s

in

th e

d ir e c tio n , m a y a c c o u n t fo r s u c h

tio n s .

S e c o n d ly , th e r e tu r n

n eces­

im p e r fe c ­

to p r iv a te s u p p lie r s

th e se
th e

D ir e c to r s ,

th r ee

and
serve

r e s p e c t iv e ly ,

C o r p o r a tio n

A s s o c ia tio n .

v e lo p m e n t

as

th e
The

a re o fte n

n o t r e fle c t th e to ta l e c o n o m ic or s o c ia l b e n e fits

le g a lly
of

th e

P r e s id e n t

and

I n te r n a tio n a l
th r ee

The

C o n s e q u e n tly , th e U . S . C o n g r e s s e s ta b lis h e d
a

n u m ber

of

F e d e r a l c r e d it

p rogram s

to

im ­

o ld e s t

of

to c o lle c t iv e ly

F i­
D e­

in s t itu t io n s

B a n k G roup.

th a t r e s u lt fro m su c h in v e s tm e n ts .

referred

are

D ir e c to r s

o f th e I n te r n a tio n a l

and

o f fu n d s fr o m in v e s tm e n ts in c e r ta in s e c to r s m a y

C o r p o r a tio n .

a g e n c ie s

n o r m a lly

A s s o c ia tio n

F in a n c e

P r e s id e n t

Bank

nance

D e v e lo p m e n t

In te r n a tio n a l

A lth o u g h

c r e d it. I n v e s t o r u n fa m ilia r ity w it h r is k s o r r a te s

sa ry

not

I n te r n a tio n a l

th e

th e in te r n a tio n a l

l e n d i n g a g e n c i e s , t h e W o r ld
a t th e B r e tto n

s is te r in s titu tio n

p r o m o te

F u n d . A lth o u g h th e B a n k

c e r ta in

d e s ir e d

e c o n o m ic

and

s o c ia l

fo r ts

in s titu tio n s a s

of

th e

S m a ll

F ederal

L and

B u s in e s s

A d m in is tr a ­

to w a rd

th e

W o r ld

d e v e lo p m e n t

B a n k , w a s fo u n d ed

W o o d s C o n fe r e n c e in

p r o v e t h e e f fic ie n c y o f fin a n c ia l m a r k e ts a n d /o r
g o a ls . T h e s e p r o g r a m s a r e a d m in is te r e d b y s u c h

as

1944 a s a

o f th e I n te r n a tio n a l M o n e ta r y
d ir e c te d

it s e a r ly e f­

h e lp in g
E u rop e,

w a r -to r n

fin a n c e th e r e c o n s tr u c tio n
it

has

s in c e

d ev o ted

its

th e

a t te n t io n e n t ir e ly to fin a n c in g e c o n o m ic d e v e lo p ­

F e d e r a l H o u s in g A d m in is tr a t io n , a n d t h e E x p o r t-

m e n t. I n a d d itio n , it p r o v id e s t e c h n ic a l a s s is t a n c e

Im p ort B an k .

to d e v e lo p in g c o u n tr ie s .

tio n ,

th e

B ank

B e c a u s e o f d iffe r e n c e s in
in s titu tio n s

am ong

S y stem ,

The

la w s, c u s to m s , a n d

n a tio n s , h o w e v e r ,

im p e r fe c ­

Bank

n o r m a lly

fin a n c e s

th e

fo r e ig n e x ­

c h a n g e p o r tio n o f th e c o s ts o f c a r e f u lly s t u d ie d

tio n s in in te r n a tio n a l m o n e y a n d c a p it a l m a r k e ts

p r o je c ts th a t w ill c o n tr ib u te a p p r e c ia b ly

a r e c o n s id e r a b ly g r e a te r th a n w it h in t h e U n it e d

p r o d u c tiv ity

to

th e

S ta te s . I n e f f ic ie n c y o f m o n e y a n d c a p ita l m a r k e ts

o n ly to m e m b e r g o v e r n m e n ts , th e ir a g e n c ie s , o r

o f t h e b o r r o w in g c o u n t r y . I t l o a n s

w it h in in d iv id u a l c o u n tr ie s a d d s to t h e s e im p e r ­

to p r iv a te fir m s w it h in m e m b e r c o u n tr ie s w h ic h

f e c t io n s . M o r e o v e r , n a t io n s w ith

carry

in c o m e s

and

lo w

in v e s tm e n ts in

ra tes

areas

of

lo w

p e r c a p ita

s a v in g r e q u ir e la r g e

su ch

as

e d u c a tio n ,

tr a n s­

th e ir

g o v e r n m e n t ’s

g u a r a n te e .

L oans

are

o n ly m a d e w h e n o th e r so u r c e s o f fin a n c in g c a n ­
n o t b e o b t a i n e d ; b u t t h e b o r r o w in g c o u n t r y m u s t

p o r ta tio n , a n d p o w e r fo r e c o n o m ic d e v e lo p m e n t.

have

W h ile

c a r r ie s a fix e d r a te o f in te r e s t a n d h a s a m a tu r it y

retu rn s

q u ite h ig h ,

fr o m

th e y

su ch

are

in v e s tm e n ts

r e a liz e d

o n ly

m ay

over

be

lo n g

th e

c a p a c ity

r a n g in g fr o m

to

s e r v ic e

th e

lo a n ,

w h ic h

1 0 to 3 1 y e a r s . T h e B a n k f in a n c e s

p e r io d s o f tim e . I n a d d itio n , th e r e tu r n s t o p r iv a te

a w id e v a r ie ty o f p r o je c ts; th e m o s t c o m m o n a r e

in v e s to r s

w ith

l o a n s f o r h i g h w a y a n d r a i lr o a d c o n s t r u c t i o n a n d

t h e b e n e fits th a t a c c r u e to n a tio n a l d e v e lo p m e n t

lo a n s fo r b u ild in g d a m s to p r o v id e e le c t r ic p o w e r

e ffo r ts . T h u s , in te r n a tio n a l in s t itu t io n s h a v e b e e n

a n d ir r ig a tio n .

m ay

be

q u ite

s m a ll,

com p ared

fo r m e d t o c h a n n e l c r e d it to n a tio n s t h a t w o u ld

T h e v a r i o u s r e s t r i c t i o n s o n t h e B a n k ’s f i n a n c ­

o th e r w is e h a v e g r e a t d iff ic u lty in o b ta in in g fu n d s

in g a c t iv itie s

fo r b a d ly n e e d e d in v e s t m e n t p r o je c ts.

fo r a n o th e r a g e n c y

The
in

p a r tic ip a tio n

m any

of

th e se

of

th e

U.

S.

in s titu tio n s is

G overnm ent
b e c o m in g

in ­

to

p r i v a t e f ir m s c r e a t e d

th e n eed

to s u p p le m e n t it s a c tiv itie s .

T h i s r e s u l t e d in t h e f o r m a t i o n o f t h e I n t e r n a t i o n a l
F in a n c e

C o r p o r a tio n

in

1955.

The

C o r p o r a tio n

c r e a s in g ly im p o r ta n t in o u r o w n fo r e ig n p o lic y .

m a k e s n o n g u a r a n te e d lo a n s to p r iv a te e n te r p r is e

R e c e n t ly , in a s p e e c h o n L a tin A m e r ic a , P r e s i­

in

d e n t N ix o n s p e c ific a lly c a lle d a t te n t io n to th e ir

c a p ita l

r o le in U . S . p o litic a l a n d fin a n c ia l p o lic y . H e

A fte r it s c h a r te r w a s a m e n d e d in 1 9 6 1 , t h e I F C

in d ic a t e d t h a t , in t h e fu tu r e , a m u c h la r g e r p o r ­

h a s b e e n a b l e t o p r o v i d e r is k c a p i t a l b y p u r c h a s ­

tio n

of U .

S.

a id

to

L a tin

A m e r ic a

w o u ld

be

c h a n n e le d th r o u g h in te r n a tio n a l le n d in g a g e n c ie s .

d e v e lo p in g
is

c o u n tr ie s

not

a v a ila b le

w hen
on

s u f f ic ie n t p r iv a te
r e a s o n a b le

term s.

in g s to c k in in d iv id u a l c o m p a n ie s a s w e ll. I n a d d i­
tio n to d ir e c tly

f in a n c in g in d iv id u a l p r o je c ts in

d e v e lo p in g c o u n tr ie s , t h e I F C in v e s t s in d e v e lo p ­

T h e W o r ld

Bank

G ro u p

M o s t im p o r ta n t o f t h e s e in s t itu t io n s is t h e I n ­

M ARCH

19 70




m e n t b a n k s t h a t r e lo a n to o th e r in s t it u t io n s a n d
p a r t ic ip a t e s in u n d e r w r itin g a n d s t a n d b y tr a n s a c ­

39

t io n s fo r p r iv a te fir m s r a is in g c a p it a l. F in a n c in g

L o a n s m a d e b y th e s e p a r a te ly a d m in is te r e d F u n d

a

fo r S p e c ia l O p e r a tio n s

ste e l

p la n t in

A r g e n tin a ,

a

cem ent

p la n t in

T h a i l a n d , a n d a c e l l u l o s e a n d f ib e r p l a n t i n P a k ­

tio n .

i s t a n e x e m p l i f i e s t h e I F C ’s a c t i v i t i e s .
E v e n a fte r t h e I F C

b e g a n su p p le m e n tin g

th e

a c t iv it ie s o f t h e W o r ld B a n k , o th e r g a p s in d e ­
v e lo p m e n t

le n d in g

s till

r e m a in e d .

M any

in c o m e c o u n tr ie s h a v e u r g e n t n e e d s

lo w

fo r in v e s t ­

r e s e m b le t y p e s o f lo a n s

m a d e b y th e In te r n a tio n a l D e v e lo p m e n t A s s o c ia ­
In

a d d itio n ,

tr u st fu n d
S o c ia l

on

th e

ID B

a d m in is te r s ,

b e h a lf o f t h e

P rogress

T ru st

U n ite d

Fund

as

a

S ta te s, th e

w h ic h

c h a n n e ls

U . S . c o n tr ib u tio n s to L a tin A m e r ic a u n d e r th e
A llia n c e

fo r

P ro g ress.

A fte r

r e c e iv in g

its

la s t

m e n t in s o c ia l o v e r h e a d s u c h a s h o u s in g , s c h o o ls ,

in c r e a s e in r e s o u r c e s in 1 9 6 5 , t h is fu n d h a s b e e n

tr a n s p o r ta tio n , a n d p o w e r in o r d e r to a c c e le r a te

c o m b in e d w it h t h e F u n d fo r S p e c ia l O p e r a tio n s .

e c o n o m ic d e v e lo p m e n t. B u t s e r v ic in g lo a n s m a d e
on

a

c o n v e n tio n a l

b a s is

w o u ld

im p o s e

sev ere

s tr a in s o n t h e a lr e a d y p r e c a r io u s b a la n c e o f p a y ­
m e n ts s it u a tio n s o f m a n y o f t h e s e n a tio n s . C o n ­
s e q u e n tly ,
s o c ia tio n

th e

I n te r n a tio n a l

(ID A )

D e v e lo p m e n t

w a s c r e a te d in

so -c a lle d

“so ft

c a p a c ity

to o b ta in

lo a n s ”

to

n a tio n s

c a p ita l

A s­

1 9 6 0 to p r o v id e
w ith

a n d /o r

lim ite d

s e r v ic e

con­

ID A

s im ila r to

m akes

p r io r ity

th o se m a d e b y

d e v e lo p m e n t

t h e W o r ld

Bank

but
and

o n c o n s id e r a b ly m o r e g e n e r o u s te r m s
“ so ft

lo a n ” ) .

lo a n s

o f p u rp o ses

fo r a s o m e w h a t b r o a d e r r a n g e
e x p r e s s io n

L oans

( th u s, th e

are

n o r m a lly

g r a n te d o n a n in te r e s t - fr e e b a s is ( w ith a % o f o n e
percent

per

fo u n d e d in la t e 1 9 6 6 . T h e A D B , m o d e le d s o m e ­
w hat

a fte r

annum

s e r v ic e

charge)

fo r

a

th e

In te r -A m e r ic a n

D e v e lo p m e n t

B a n k , is a r e g io n a l b a n k fo r A s ia . T h u s , i t c o n ­
d u c ts

d e v e lo p m e n t

le n d in g

o p e r a tio n s

u s in g

c r ite r ia s im ila r to t h o s e o f t h e W o r ld B a n k a n d
m akes

“so ft

s p e c ia liz e d

v e n t io n a l lo a n s .
The

T h e U n ite d S ta t e s h a s a ls o b e c o m e a p a r tic i­
p a tin g m e m b e r in t h e A s ia n D e v e lo p m e n t B a n k ,

v e lo p m e n t

lo a n s ” th r o u g h
p u rp o ses.

Bank

I n te r -A m e r ic a n
p o rta n t resp ect:

sev era l

H ow ever,

d iffe r s

fu n d s

th e

A s ia n

s ig n ific a n tly

D e v e lo p m e n t

B ank

A p p r o x im a te ly

in

fo r
D e­

fr o m

th e

one

im ­

o n e -th ir d

o f its

su b s c r ib e d c a p ita l a n d , th e r e fo r e , a s im ila r p r o ­
p o r tio n o f it s v o t in g p o w e r b e lo n g to n o n r e g io n a l
in d u s tr ia l n a tio n s .

m a­

t u r ity p e r io d o f 5 0 y e a r s . T h e r e p a y m e n t s c h e d u le
in c lu d e s a 1 0 -y e a r g r a c e p e r io d , 1 0 y e a r s d u r in g
w h ic h o n e p e r c e n t o f t h e p r in c ip a l is r e p a id a n ­

C A P IT A L

RESO U RCES

IN T E R N A T IO N A L

L E N D IN G

OF
A G E N C IE S

($ T h o u sa n d s)

n u a lly , a n d 3 0 y e a r s d u r in g w h ic h 3 p e r c e n t o f
t h e p r in c ip a l is r e p a id a n n u a lly .

R e g io n a l
In

a d d itio n

to

Subscribed
C a p ita l

P a id -in
C a p ita l

23,036

2,304

107

107

International Developm ent
Association*
1,013
V o tin g C ap ita l
Supplem entary
1,053
Resources

1,013

L e n d in g A g e n c ie s

th e

in te r n a tio n a l

in s titu tio n s

W o rld B a n k *

j u s t d e s c r ib e d , th e U n it e d S t a t e s h a s a ls o p a r ti­
c ip a t e d in t h e fo r m a tio n o f r e g io n a l a g e n c ie s t h a t
p r o m o te

e c o n o m ic

A m e r ic a n
is

th e

d e v e lo p m e n t.

The

In te r-

D e v e lo p m e n t B a n k , fo u n d e d in

o ld e s t

of

su ch

in s t itu t io n s .

1959,

The

ID B ,

w h o s e o r ig in a l m e m b e r s h ip in c lu d e d t h e U n ite d
S ta te s

and

crea ted

20

L a tin

A m e r ic a n

c o u n tr ie s ,

w as

to s u p p le m e n t th e w o rk o f o th e r in te r ­

n a tio n a l

in s t itu t io n s

in

L a tin

A m e r ic a

and

to

d e a l w it h p r o b le m s p e c u lia r to t h a t r e g io n . A s id e
fro m

p r o m o tin g

e c o n o m ic

in d iv id u a l

L a tin

has

concerned

been

A m e r ic a n
w ith

d e v e lo p m e n t
c o u n tr ie s ,

w ith in

th e

s u p p o r tin g

ID B

r e g io n a l

e c o n o m ic in te g r a tio n .
I n it s o r g a n iz a tio n a l str u c tu r e , th e I D B

com ­

b in e s f e a tu r e s o f b o th t h e W o r ld B a n k a n d
I n te r n a tio n a l

D e v e lo p m e n t

A s s o c ia tio n .

p a tte r n e d

a fte r

th o se

40




of

th e

W o r ld

Inter-A m erican
Developm ent B a n k * *
O rd in a ry C a p ital
F u n d for Special
Operations
Social Progress
T ru st F u n d
A s ia n Developm ent
B an k**

1,053

2,741

475

1,900

1,900

525

525

970

291

th e

W hen

l e n d i n g o u t o f o r d i n a r y c a p i t a l , t h e I D B ’s p o l i c i e s
are

International Finance
C orporation*

* A s of June 30, 1969
* * A s of Decem ber 31, 1968

B ank.

M O N TH LY

R E V IE W

in g . A t te m p t s t o b o o s t lo a n a b le r e s o u r c e s th r o u g h

U. S.

P A R T I C I P A T IO N

IN T E R N A T IO N A L

IN

C A P IT A L

L E N D IN G

in c r e a s in g

OF

c a p ita l

s u b s c r ip tio n s

of m em ber n a ­

t io n s h a v e m e t w ith d if f ic u lt y b e c a u s e o f b a la n c e

A G E N C IE S

o f p a y m e n t s p r o b le m s o f v a r io u s in d u s t r ia liz e d

($ T housands)

n a tio n s

Subscribed
C ap ital

th a t

fu r n is h

m o st

of

th e

new

c a p it a l.

T h is p r o b le m h a s b e c o m e p a r t ic u la r ly s e v e r e fo r

P aid-in
C apital

“ s o f t lo a n ” a g e n c ie s w h ic h d e p e n d u p o n c a p it a l
c o n tr ib u tio n s fo r th e ir p r in c ip a l so u r c e o f fu n d s .

W o rld B a n k *

6,350

635

35

35

C o n t r ib u t io n s to

International Finance
Corporation*
Intern ational Developm ent
Association*
V o tin g C ap ital
Supplem entary
Resources
Inter-A m erican
Developm ent B a n k * *
O rd in a ry C ap ital
F u n d for Special
Operations
Social Progress
T ru st F u n d

S in c e

th e ir

in s titu tio n s

320

in te r n a tio n a l

here

have

le n d in g

c o m m itte d

a

c u m u la tiv e to ta l o f th e e q u iv a le n t o f $ 1 7 b illio n

320

312

in c e p t io n ,
d e s c r ib e d

D e v e lo p m e n t

312

to f in a n c in g e c o n o m ic d e v e lo p m e n t. S lig h t ly le s s
th a n h a lf h a s b e e n d is b u r s e d . T h e s e in v e s t m e n ts
have

1,174

150

1,800

m ade

p o s s ib le

a

a d d itio n a l in v e s tm e n ts

c o n s id e r a b le
fr o m

o th e r

am ount
so u rces,

of
p r i­

v a t e a s w e ll a s p u b lic , t h a t p r o b a b ly w o u ld n o t
h ave been m ade

1,800

o th e r w is e .

M o r e o v e r , th e ir

ex­

p e r ie n c e h a s p r o v e d h e lp fu l in c o o r d in a tin g o th e r

525

525

200

A sia n Developm ent
Ban k**

60

t y p e s o f o f f i c i a l a i d . T h i s c o o r d i n a t io n , b y r e d u c ­
in g d u p lic a tio n o f e ffo r t, h a s m a d e fin a n c ia l a id
m o r e e ffe c tiv e . I n a d d itio n to p r o v id in g fin a n c ia l
r e so u r c e s, th e s e a g e n c ie s h a v e b u ilt a v a s t sto r e

* A s of June 30, 1969
* * A s of Decem ber 31, 1968

o f v a lu a b le d e v e lo p m e n t e x p e r tis e t h a t h a s b e e n
p a s s e d o n to r e c ip ie n t c o u n tr ie s .

M e th o d s
I n te r n a tio n a l le n d in g
le n d in g

th r o u g h

a

D e s p it e th e fo r m id a b le d iff ic u ltie s o f d ir e c tly

o f F in a n c in g
a g e n c ie s o b ta in

v a r ie ty

of

fu n d s

fo r

m e th o d s . P a id - in

m e a s u r in g

th e

im p a c t

of

a g e n c ie s , th e ir

le n d in g

a c tiv itie s

in te r n a tio n a l

le n d in g

h a v e c e r ta in ly

c a p ita l fr o m m e m b e r n a tio n s is a c o m m o n s o u r c e

c o n tr ib u te d to fa v o r a b le r e s u lts a lr e a d y s e e n in

of

th e

fu n d s

W o r ld

to

a ll th e

Bank

m ent

Bank

and
have

s e c u r itie s o n

a g e n c ie s .

In

a d d itio n ,

th e I n te r -A m e r ic a n
b e e n •a b le

w o r ld

c a p ita l

to

D e v e lo p ­

flo a t th e ir

m a r k e ts

th e
ow n

b eca u se

of

la r g e m a r g in s o f c a lla b le c a p it a l a n d b e c a u s e o f
th e q u a lity

o f th e ir lo a n s . T h e A s ia n

m e n t B a n k is lik e w is e e x p e c te d
in t h is m a n n e r .
Som e

of

th e

le n d in g

to

D e v e lo p ­

r a is e

fu n d s

e c o n o m ic

p e r io d

d e v e lo p m e n t

record.

O ver

th e

1 9 6 0 -6 7 , d e v e lo p in g c o u n tr ie s a s a w h o le

e x p e r ie n c e d h ig h e r a v e r a g e g ro w th r a te s in G N P ,
in

a g r ic u ltu r a l

in

gross

and

in d u s tr ia l

in v e s tm e n t

c o u n tr ie s .

th a n

O f cou rse,

w id e v a r ia tio n

in

one

p r o d u c tio n ,

d id
m u st

e c o n o m ic

and

in d u s t r ia liz e d
c o n s id e r

p erfo r m a n c e

th a t
e x is ts

a m o n g in d iv id u a l c o u n tr ie s .

in s t itu t io n s

have

a ls o

D e s p ite

th e ir

g a in s ,

le s s

d e v e lo p e d

n a tio n s

a u g m e n te d th e ir lo a n a b le r e s o u r c e s th r o u g h s a le s

s t ill f a c e s o m e d if f ic u lt p r o b le m s . F o r in s t a n c e ,

o f p a r tic ip a tio n s in th e ir o w n p o r tfo lio s . R e p a y ­

b ecau se

m e n t s o n p a s t lo a n s p r o v id e a d d it io n a l f u n d s fo r

in c r e a s e in p e r c a p it a G N P w a s le s s t h a n fo r i n ­

new

d u s tr ia liz e d

le n d in g

a c tiv ity

to

th e

W o r ld

B ank,

th e

of

th e ir

r a p id

p o p u la t io n

g ro w th ,

th e

c o u n tr ie s . M o r e o v e r , d e b t s e r v ic in g

I n te r -A m e r ic a n D e v e lo p m e n t B a n k , a n d th e I n ­

r e q u ir e m e n ts o n

t e r n a t i o n a l F i n a n c e C o r p o r a t io n . T h e o t h e r t w o

b e in g s h o r t-te r m , is b e c o m in g a s e r io u s b u r d e n fo r

a g e n c ie s h a v e n o t o p e r a te d

som e.

c e iv e

lo a n

lo n g

enough

to

re­

T h u s,

r e p a y m e n ts.

B u t t h e g r o w in g d e m a n d s fo r f u n d s in w o r ld

e x te r n a l d e b t, a

d e v e lo p in g

c o u n tr ie s

la r g e p o r tio n

need

in c r e a s in g

a m o u n ts o f n e w c a p ita l to o v e r c o m e t h e s e c r itic a l

c a p ita l m a r k e ts h a v e m a d e th e c o m p e tit io n fa c in g

p r o b le m s a n d to c o n s o lid a t e e c o n o m ic

t h e s e a g e n c ie s fo r o b ta in in g fu n d s m o r e in te n s e

ready

in r e c e n t y e a r s . F u r th e r m o r e , th e a c c o m p a n y in g

th e

r is e

tin u e

of

h ig h

w o r ld

le v e ls

in te r e s t

has

g r e a tly

ra tes

to

e x tr a o r d in a r ily

in c r e a s e d

th e

cost

of

fu n d s n e c e s s a r y fo r s u s ta in in g d e v e lo p m e n t le n d ­

M ARCH

1970




a c h ie v e d .

in te r n a tio n a l
to

have

a

P a st

e x p e r ie n c e

le n d in g
la r g e

in s titu tio n s

in flu e n c e

g a in s a l­

su g g e sts
on

w ill
th e

th a t
con­

fu tu r e

d ir e c tio n o f fin a n c ia l flo w s to m e e t t h e s e n e e d s .
J

ohn

E . L e im o n e

41

A r e a D i v e r s i t y in L o u i s i a n a ' s G r o w t h
P e r s is te n t

d iffe r e n tia ls

in

e c o n o m ic

g ro w th

are

L a fa y e tte -I b e r ia -H o u m a

area,

bank

lo a n s

in ­

fr e q u e n tly fo u n d a m o n g g e o g r a p h ic a r e a s. S u c h

cr e a se d a t a m o d e r a te b u t s te a d y p a c e th r o u g h ­

d iffe r e n tia ls a r e o fte n r e la te d to d iffe r e n c e s in e c o ­

o u t t h e s a m e f iv e -y e a r p e r io d .

n o m ic str u c tu r e . D iv e r s it y in e c o n o m ic p e r fo r m ­

D e p o s it a c t iv ity in th e d iffe r e n t a r e a s c lo s e ly

a n c e w ith in v a r io u s a r e a s o f L o u is ia n a illu s t r a te s

p a r a lle le d lo a n a c t iv ity . A s in lo a n s , B a t o n R o u g e

th e se

and

p a tte r n s.

g ro w th
w ith

arou n d

b o o m in g

R ouge,
L ake

and

For
N ew

e x a m p le ,
O r le a n s

a c tiv ity

in

s u r r o u n d in g

C h a r le s

1 9 6 9 , h o w e v e r .)

and

L ake
areas.

B a to n

s lo w

e c o n o m ic

C h a r le s ,
(T h is

A le x a n d r ia -L a k e

C h a r le s

su rp a ssed

o th e r

s h a r p ly

co n tra sts

a r e a s in d e p o s it e x p a n s io n fr o m 1 9 6 5 th r o u g h 1 9 6 8

B a to n

b u t d is p la y e d a le s s h e c t ic p a c e in 1 9 6 9 . N e w O r­

boom

in

R o u g e ta p e r e d o ff in

T h e s e d iv e r g e n t p a tte r n s w ith in

le a n s tr a ile d b e h in d a ll o th e r a r e a s in t h e r a te o f
d e p o s it
N ew

g ro w th . T h e le v e lin g -o ff o f

O r le a n s

d u r in g

1969,

th o u g h

d e p o s its

in

c o n tr a s tin g

L o u is ia n a a r e c lo s e ly r e la te d to g e o g r a p h ic d iffe r ­

s h a r p ly w ith t h e u p s u r g e in lo a n s , r e m a in e d c o n ­

e n c e s in e c o n o m ic m a k e u p .

s is t e n t w ith t h e lo n g e r -r u n tr e n d s in b o th in d ic a ­

G ro w th a s M e a s u r e d b y B a n k i n g A c tiv ity

to rs. D e p o s it s in n o r th L o u is ia n a a n d L a fa y e tte I b e r ia -H o u m a a d v a n c e d s t e a d ily u p w a r d .

M e m b e r b a n k lo a n s a n d d e p o s its , tw o im p o r ta n t
b a r o m e te r s o f e c o n o m ic a c tiv ity , sh o w th a t e c o ­
n o m ic e x p a n s io n h a s p r o c e e d e d u n e v e n ly in th e
P e lic a n

E m p lo y m e n t T r e n d s
T h e r a te o f jo b e x p a n s io n fo r t h e d iffe r e n t s e c ­

S ta t e . D u r in g t h e 1 9 6 5 -6 9 p e r io d , A le x -

t io n s o f t h e s t a t e c lo s e ly f o llo w e d g r o w th p a tte r n s

a n d r ia -L a k e C h a r le s a n d B a t o n R o u g e tr a d e a n d

e v id e n t in b a n k in g a c t i v i t y .1 T h u s , L a k e C h a r le s

b a n k in g a r e a s o u t s t r ip p e d o t h e r s e c t io n s in

th e

a n d B a to n R o u g e su r p a s s e d a ll o th e r L o u is ia n a

g r o w th o f b a n k lo a n s . H o w e v e r , d u r in g m o s t o f

S M S A ’s i n e m p l o y m e n t , d e s p i t e s o m e s l i p p a g e i n

19 6 9 , lo a n a c t iv ity b e h a v e d m o r e s lu g g is h ly . N e w
O r le a n s , o n

th e o th e r h a n d , e x p e r ie n c e d a n u p ­

s u r g e in 1 9 6 9 a fte r la g g in g b e h in d d u r in g m o s t o f
t h e 1 9 6 5 -6 9 p e r io d . I n n o r th

42




L o u is ia n a a n d th e

’ A n
in d ic a t io n
o f e m p lo y m e n t t r e n d s in
in
b a n k in g
a re a s c a n b e in fe r r e d
fro m
th e b e
m e n t in
th e S t a n d a r d M e t r o p o lit a n S t a t is t ic a
E m p lo y m e n t
w it h in
L o u is ia n a ’s
s ix
S M
o v e r h a lf o f t o t a l s ta te e m p lo y m e n t .

d iv id u a
h a v io r
l A r e a s
S A ’s

M O N T H L Y R E V IE W

M EM B ER

BAN K

LOANS

M EM BER

BANK

D E P O S IT S

Million $

Million $

-1 5 0 0

2090

NEW O RLEANS

750

1350
N O R T H L O U IS IA N A

500
NORTH

730

L O U IS IA N A

290

470

260

395

140

255
A L E X A N D R IA -

200

310

LA KE C H A R L E S

100

200

130

LAFA YETTE-

250

LA FA Y E T TE IB E R IA - H O U M A

65
l

i

I

i

160

i

65
67
'6 9
Note:
All figu res except those for north
Louisiana are seasonally adjusted and are
show n by trade and banking areas. The
areas include several counties surrounding
central cities.

1 9 6 9 , th e r e b y n e a r ly

p a r a l l e l i n g b a n k in g t r e n d s

in th e L a k e C h a r le s a n d B a t o n R o u g e tr a d e a n d

Note:
A ll figures except those for north
Louisiana are seasonally adjusted and are
show n by trade and banking areas. The
areas include several counties surrounding
central cities.

th e

e x p a n s io n

of

th ese

tw o

in d u s tr ie s

is

w e ll

know n.

th e se

T h e lo n g in v e s t m e n t b o o m in L a k e C h a r le s a n d

tw o s e c tio n s o f th e s t a t e c a n b e la r g e ly e x p la in e d

B a t o n R o u g e h a s a ls o s p a r k e d la r g e in c r e a s e s in

b y t h e i r l i o n ’s s h a r e o f L o u i s i a n a i n v e s t m e n t i n

c o n s tr u c tio n

new

a c c o u n t s fo r a m u c h la r g e r s h a r e o f t o t a l e m p l o y ­

b a n k in g

areas. T h e

and

exp an d ed

e c o n o m ic

p la n t

and

u p su rg e

in

e q u ip m e n t

fro m

e m p lo y m e n t;

in

fa c t,

c o n s tr u c tio n

1 9 6 5 -6 9 . T h is e x p a n s io n is r o o te d in t h e b u r g e o n ­

m e n t w i t h i n t h e s e S M S A ’s t h a n i n t h e r e s t o f t h e

in g p e tr o le u m r e fin in g a n d r e la t e d p e tr o -c h e m ic a l

sta te.

in d u s tr ie s , w ith

s tr u c tio n

s o m e a d d itio n a l g r o w th d e r iv e d

C o n s e q u e n tly ,

d ependence

e s p e c ia lly

on

con­

s e n s itiv e to th e

drop

L o u i s i a n a ’s r a w m a t e r i a l r e s o u r c e s i n p r o m o t i n g

d u r i n g 1 9 6 9 . L o c a l la b o r p r o b l e m s a n d t h e s l u m p

19 70




new

th e ir

fr o m th e p a p e r a n d lu m b e r in d u s tr ie s . T h e r o le o f

M ARCH

in

m a d e th e m

in v e s t m e n t o c c u r r in g in

L o u is ia n a

43

C

i v i l i a n

BATON

E m

ROUGE

p lo y m

e n t

(L o u i s i a n a

LAFAYETTE

Thousands

Thousands

S M

LAKE

S A

CHARLES

’s )

Thou$ands

— 50

'65

M O NRO E

NEW

ORLEANS

SHREVEPO RT

— 125

100
I

l

65

I

I

67

I

'69

I

'6 5

t h a t c h a r a c te r iz e d c o n s tr u c tio n n a tio n a lly a d d e d
t o t h e d iffic u ltie s o f t h a t s e c to r in B a t o n R o u g e

The

I

g ro w th o f e m p lo y m e n t in

S h r ev ep o r t, a n d

I

'67

'69

th e

L a fa y e tte ,

M o n r o e S M S A ’s t e n d s t o s u b ­

a n d L a k e C h a r le s . T h e c o n t r a c t io n o f n e w in v e s t ­

s t a n t ia t e t h e p a tte r n o f a m o d e r a te , u p w a r d tr e n d

m e n t p r o b a b ly

in d ic a te d b y b a n k in g d a ta in lo w e r c e n tr a l a n d

ca u sed

a d v e r s e r e p e r c u s s io n s

in

o th e r s e c to r s o f e c o n o m ic a c t iv it y a s w e ll.

n o r th L o u is ia n a . T w o d iv e r g e n t fo r c e s h a v e a f fe c t ­

E m p lo y m e n t in t h e N e w O r le a n s a r e a fa lte r e d
e v e n m o r e t h a n b a n k in g a c t iv it y . T h e lim it e d e x ­

ed

e c o n o m ic

fo r tu n e s in

and

around

L a fa y e tte .

T h e r e la t iv e ly la r g e im p o r ta n c e o f a g r ic u ltu r e , a

p a n s io n in jo b s a p p e a r s to b e d ir e c t ly r e la te d to

t r a d itio n a lly d e c lin in g s e c to r o f e m p lo y m e n t, a n d

t h e fo r tu n e s o f th e M ic h o u d

th e

w h ic h

e m p lo y m e n t

fe ll

fr o m

Space
a

F a c ilit y ,

peak

of

in

1 1 ,5 0 0

c lo s e ly

in d u s tr y

r e la te d

fo o d

h a v e te n d e d

and

to h o ld

k in d r e d
dow n

p r o d u c ts

t h e o v e r a ll

p e r s o n s in 1 9 6 4 to th e c u r r e n t le v e l o f a p p r o x i­

a s c e n t o f e m p lo y m e n t. N e v e r th e le s s , in v e s tm e n t

m a t e ly 3 ,6 0 0 p e r s o n s . I n a d d itio n , N e w O r le a n s ’

in

s lu g g is h g r o w th m a y h a v e b e e n in flu e n c e d b y t h e

in d u s tr ie s

d o m in a n c e o f fo o d

L a f a y e t t e ’s

and

k in d r e d

p r o d u c ts, t y p i­

c a lly a s lo w -g r o w th a n d lo w -w a g e in d u s t r y g r o u p .

th e

g r o w th -o r ie n te d
have
jo b

m ore

p e tr o le u m
th a n

g r o w th

in

o ffse t

and

c h e m ic a l

th e se

e ffe c ts.

c o n s tr u c tio n

and

t r a n s p o r ta tio n , c o m m u n ic a tio n s , a n d p u b lic u t i l i ­

T h a t th e d r a g o n to ta l e c o n o m ic a c t iv ity in N e w

tie s

O r le a n s w a s n o t g r e a te r s t e m s fr o m

r e f le c t t h e r e p e r c u s s io n s o f t h is p a r t ic u la r t y p e o f

s h ip b u ild in g

a boom

d u r in g t h e la s t tw o y e a r s .

44




in

( in c lu d in g

p ip e lin e

e m p lo y m e n t)

te n d s

to

in v e s tm e n t.
M O N TH LY

R E V IE W

d is p la y s

f a y e t t e a n d n o r th L o u is ia n a , d e s p it e t h e in v e s t ­

s o m e d iv e r g e n t fo r c e s . T h e d e c lin e in a g r ic u ltu r a l

N o r th e r n

L o u i s i a n a ’s

econom y

a ls o

m e n t d r o p -o ff in p e tr o le u m a n d r e la te d p r o d u c ts .

e m p lo y m e n t a r o u n d S h r e v e p o r t a n d a s ta n d s till

S u c h in d u s tr ie s p la y a s m a lle r r o le in t h e s e p a r ts

i n M o n r o e a n d S h r e v e p o r t ’s r e l a t i v e l y i m p o r t a n t

o f t h e s ta te . F u tu r e g ro w th w ill d e p e n d la r g e ly

f o o d in d u s t r ie s r e s tr ic te d e x p a n s io n . O n t h e o th e r

u p o n t h e e x t e n t to w h ic h t h e y c a n d iv e r s if y a w a y

h a n d , in v e s tm e n t in p e tr o le u m a n d c h e m ic a ls , a s

fro m a g r ic u ltu r e a n d fo o d in d u s tr ie s to m o r e d y ­

w e ll a s in lu m b e r a n d r e la t e d in d u s t r ie s , p r o v id e d

n a m ic in d u s tr ie s . T h e S h r e v e p o r t S M S A h a s d i­

a s o u r c e o f g r o w th . A c o n s id e r a b le u p s u r g e in in ­

v e r s ifie d

v e s tm e n t a n d e m p lo y m e n t in m e ta l a n d m a c h in ­

m e ta l a n d lin k e d m a c h in e r y in d u s tr ie s . T h is la t ­

e r y in d u s tr ie s a d d e d a fu r th e r b o o s t t o S h r e v e ­

te r in d u s t r y h a s a t r a d itio n a lly fa v o r a b le r e c o r d

p o r t ’s e c o n o m y .

o f lo n g - r u n e x p a n s i o n .

so m ew h a t

by

e x p a n d in g

its

p r im a r y

D e s p it e a d v e r s e im p a c t fr o m t h e s c a lin g -d o w n

P ro sp e c ts

a t M ic h o u d ,

th e r e

are

so m e

p o te n tia lly

b r ig h t

T h e le s s h e c t ic e c o n o m ic p a c e in t h e L a k e C h a r le s

s p o t s in N e w O r le a n s ’ e c o n o m y . T h e tr a n s p o r ta ­

a n d B a t o n R o u g e a r e a s in 1 9 6 9 r e fle c ts a d r o p -o ff

tio n e q u ip m e n t in d u s tr y — s h ip b u ild in g c o n s t it u t ­

in in v e s tm e n t, e s p e c ia lly in p e tr o le u m a n d p e tr o ­

in g a s ig n ific a n t p a r t— c o n t in u e s to a d d s ig n ifi­

c h e m ic a ls , a n d lo c a l a n d n a tio n a l d e v e lo p m e n ts

c a n t ly to N e w O r le a n s ’ m a n u fa c tu r in g jo b to ta l.

in

A m o d e r n iz a tio n p r o g ra m o f p o r t f a c ilit ie s s h o u ld

c o n s tr u c tio n .

th e se

tw o

F u tu re

g e o g r a p h ic

e c o n o m ic
areas,

p r o sp e c ts

th e re fo re,

fo r

d epend

im p r o v e N e w

O r le a n s ’ r o le in h a n d lin g in te r n a ­

u p o n t h e a b ilit y o f t h e s e in d u s tr ie s to r e g a in th e ir

t io n a l tr a d e , th e r e b y p r o v id in g a n a d d itio n a l b o o s t

e c o n o m ic str e n g th .

to th e area.

E c o n o m ic a c t iv itie s a d v a n c e d

s te a d ily

in

La­

J

This is one o f a series o f articles in which econom ic developm ents in

each

of the Sixth

D istrict

ohn

E.

states are

L e im o n e

discussed.

B a n k A n n o u n ce m e n ts
M. Feagin, cashier. Capital is $400,000; surplus and
other capital funds, $168,897.

On February 23, Congress National Bank, Palm Springs,
Florida, a newly organized member bank, opened for
business. Officers are Jerry Thomas, chairman; Daniel
S. Goodrum, president; George H. Boutwell, executive
vice president and cashier; Dennis Grimes, vice presi­
dent; and Mrs. Jean Pinder, assistant cashier. Capital
is $375,000; surplus and other capital funds, $375,000.

On February 26, another newly organized nonmember
bank, University State Bank, Tampa, Florida, opened
for business. Charles E. Futch, Jr. is president and
Cecil R. Fultz, Jr. is cashier. Capital is $500,000; sur­
plus and other capital funds, $150,000.

Five Points Guaranty Bank, Jacksonville, Florida, opened for business as a newly organized nonmember
bank on February 25. Officers are Julian E. Fant, chair­
man; Julian E. Fant, Jr., vice chairman; Carl E. Graham,
president; Eloise S. Perryman, vice president; and Eva

DeKalb County Bank, Atlanta, Georgia, opened for busi­
ness on February 27 as a newly organized nonmember
bank. Officers are J. Mack Robinson, chairman; David
M. Housend, president; Clinton L. Sanders, vice presi­
dent; and K. Lamar Thomas, cashier. Capital is $300,000;
surplus and other capital funds, $300,000.

M ARCH

1 9 70




45

S ix t h D is t r ic t S t a t is t ic s
S e a s o n a lly A d ju ste d

(A ll

d a ta

are

Latest Month

in d e xe s ,
One
Month
Ago

Two
Months
Ago

1 9 5 7 -5 9

INCOME AND SPENDING
. Dec.
. Dec.
. Dec.

N.A.
250
150
122
202

N.A.
251
156
133
193

N.A.
249
155
112
188

66,211
233
139
126
171

292.0
307.0

337.7
296.0

320.0
298.4

282.6
248.3

152
149
176
143
180
118
106
131
135
116
210
152
142
61

152
149
176
141
182
117
108
130
136
116
209
153
142
56

149
149
176
141
176
116
111
128
128
116
207
149
146
63

3.5

Instalment Credit at Banks* (Mil. $)
. Jan.
. Jan.
PRODUCTION AND EMPLOYMENT

u n le s s

in d ic a te d

Latest Month
Manufacturing
..................................
N o nm anufacturing ............................
C o n s t r u c t io n .................................. . . Jan.
Farm E m p lo ym e n t.................................. . . Jan.
Unemployment Rate
(Percent of Work ForceJt . . . . . Jan.
Avg. Weekly Hrs. in Mfg. (Hrs.) . . . Jan.

o th e rw is e
Two
One
Month Months
Ago
Ago

One
Year
Ago

178
176
138
91

177
176
134
93

176
178
136
90

177
169
129
94

2.4
41.3

2.6
41.4

2.8
41.3

2.6
41.0

385
259
294

379
278
284

378
263
294

324
250
251

N.A.
256
189

N.A.
271
160

N.A.
268
149

12,915
242
147

. Jan.
. Jan.

154
145
159
154
56

153
145
157
151
59

154
146
157
153
48

150
143
153
160
64

. Jan.
. Jan.

2.9
39.7

3.1
40.5

3.3
40.5

2.5
41.4

. Jan.
. Jan.

348
229
317

347
242
307

344
236
322

324
250
264

. Dec.
. Jan.

N.A.
200
136

N.A.
191
158

N.A.
194
164

9,487
181
156

136
124
139
154
45

134
123
136
140
50

134
123
136
135
51

134
123
136
154
51

. Jan.
. Jan.

5.2
42.6

5.1
41.2

5.6
42.0

4.7
41.5

. Jan.

278
176
217

281
186
204

270
179
207

247
178
190

N.A.
269
118

N.A.
261
126

N.A.
266
131

5,059
260
133

Jan.
Jan.
Jan.
Jan.
Jan.

149
157
146
171
54

148
156
144
158
50

147
156
144
157
45

147
157
142
160
57

Jan.
Jan.

3.9
40.9

3.8
40.7

4.7
40.8

3.6
40.9

Member Bank Loans* . . . .
Member Bank D e p o s it s * ............................Jan
. Jan.
Bank D e b its*/**.................................................. Jan

425
277
284

408
279
264

407
273
304

359
254
242

FINANCE AND BANKING
Member Bank L o a n s ............................ . . Jan.
Member Bank D e p o sits...................... . . Jan.
Bank D e b its * * .............................................
GEORGIA t

. Jan.

153
150
176
142
178
118
109
128
135
117
210
154
149
60

Unemployment Rate
(Percent of Work Fon
Insured Unemployment

. Jan.

3.5

3.7

3.3

Avg. Weekly Hrs. in Mfg. (Hrs.)
Construction Contracts* . . .

. Jan.
. Jan.
. Jan.
. Dec.
. Dec.
“ Jan.

2.3
40.6
439
318
542
167
103
232

1.9
40.7
292r
332
258r
165
98
238

1.8
40.8
200
216
187
164
101
233

1.9
41.0
290
268
309
153
101
206

. Jan.
Jan.

342
289

339
286

335
282

301
265

. Jan.
. Jan.
. Jan.

225
186
276

238
199
268

229
189
278

224
189
243

. Jan.
. Jan.
. Jan.
. Jan.
. Jan.
Textiles
.......................................
Transportation Equipment

. Jan.
. Jan.

Construction

Electric Power Production*

1 0 0 ,

One
Year
Ago

SIXTH DISTRICT

Personal Income
(Mil. $, Annual Rate

=

INCOME
Personal Income
(M il. $, Annual Rate) . . . .
Manufacturing Payrolls . . . .
Farm Cash R e c e ip t s ............................

. . Dec.
. . Jan.
. . Dec.

PRODUCTION AND EMPLOYMENT
Nonfarm Employmentt
. . . .
.
Manufacturing
.................................. .
N o nm anufacturing ............................
C o n s t r u c t io n .................................. .
Farm E m p lo ym e n t........................................
Unemployment Rate
(Percent of Work ForceJt . . . .
Avg. Weekly Hrs. in Mfg. (Hrs.) . .

. Jan.
. Jan.

FINANCE AND BANKING
Member Bank L o a n s .................................
Member Bank D e p o sits............................
Bank D e b its**..................................................
LOU SIANA

FINANCE AND BANKING
Loans*

Bank Debits*/*
ALABAMA $

Personal Income
(Mil. $, Annual

PRODUCTION AND EMPLOYMENT

Nonmanufacturing

Personal Income
(Mil. $, Annual

. Dec.
. Jan.
. Dec.

N.A.
216
143

N.A.
216
131

N.A.
211
118

8,245
197
123

.
.
.
.
.

Jan.
Jan.
Jan.
Jan.
Jan.

134
137
133
127
60

134
137
132
125
64

134
137
133
125
63

132
135
131
124
61

. Jan.
, Jan.

3.8
40.3

3.9
40.8

4.0
40.9

3.6
40.9

Jan.
Jan.
Jan.

306
210
248

306
218
238

300
215
239

272
211
223

Dec.
Jan.
Dec.

N.A.
336
172

N.A.
348
198

N.A.
331
222

20,275
300
151

Jan.

177

177

178

171

PRODUCTION AND EMPLOYMENT
Nonfarm Employmentt . . . .
Manufacturing
............................
Nonmanufacturing
. . . .
C o n s t r u c t io n ............................
Farm Em p lo ym e n t............................
Unemployment Rate
(Percent of Work ForceJt . .
Avg. Weekly Hrs. in Mfg. (Hrs.)

Unemployment Rate
(Percent of Work ForceJt . .
Avg. Weekly Hrs. in Mfg. (Hrs.)
FINANCE AND BANKING
Member Bank Loans*

FINANCE AND BANKING

. . . .

M ISSISSIPPI

Personal Income
(Mil. $, Annual R a t e ) ............................Dec
. Dec.
Manufacturing P ayrolls..................................Jan
Farm Cash R e c e ip t s ....................................... Dec
PRODUCTION AND EMPLOYMENT

FLORIDA $

Personal Income
(Mil. $, Annual Rate) . . .
Manufacturing Payrolls
. . .
Farm Cash R e c e ip t s ......................
PRODUCTION AND EMPLOYMENT
Nonfarm Employmentt

. . .

46




Unemployment Rate
(Percent of Work ForceJt • •
Avg. Weekly Hrs. in Mfg. (Hrs.)
FINANCE AND BANKING

M O N TH LY

R E V IE W

One
Two
MonthMonths
Ago
Ago

Latest Month
~
“

TENN ESSEE $

One
Year
Ago

INCOME
Personal Income
N.A.
N.A.N.A. 10,230
(Mil. $, Annual R a t e ) ................Dec.
Manufacturing Payrolls................... Jan.
242
243
241
235
116
147
121
111
Farm Cash R e c e ip t s ...................... Dec.
PRODUCTION AND EMPLOYMENT
Nonfarm Em ploym entt................... Jan.
Manufacturing
......................... Jan.

150
157

149
157

147
154

147
155

Latest Month
Nonm anufacturing...................... Jan.
C o n s tr u c tio n ......................... Jan.
Farm Em ploym ent......................... Jan.
Unemployment Rate
(Percent of Work F o rc e lt.............Jan.
Avg. Weekly Hours in Mfg. (Hrs.) . . Jan.

One
Two
Month Months
Ago
Ago

One
Year
Ago

147
177
62

145
165
62

145
164
57

145
180
63

3.9
40.0

3.6
40.4

3.9
40.4

3.2
40.5

324
203
262

319
213
273

317
206
278

293
189
275

FINANCE AND BANKING
Member Bank L o a n s * ................... Jan.
Member Bank D e p o s it s * ................Jan.
Bank D e b its*/**.............................Jan.

*For Sixth District area only
Other totals for entire six states
**Daily average basis
tPreliminary data
tEmployment figures for Alabama, Florida, Georgia, and Tennessee have been adjusted to new bench mark data.

r-Revised

N.A. Not available

Sources: Personal income estimated by this Bank; nonfarm, mfg. and non mfg. emp., mfg. payrolls and hours, and unemp., U.S. Dept, of Labor and cooperating state
agencies; cotton consumption, U.S. Bureau of Census; construction contracts, F. W. Dodge Div., McGraw-Hill Information Systems Co.; petrol, prod., U.S. Bureau of
Mines; industrial use of elec. power, Fed. Power Comm.; farm cash receipts and farm emp., U.S.D.A. Other indexes based on data collected by this Bank. All indexes
calculated by this Bank.

D e b it s to D e m a n d

D e p o s it A c c o

I n s u r e d C o m m e r c i a l B a n k s in t h e S ix t h D i s t r i c t

(In T h o u s a n d s o f D o lla rs )
Percent Change

Percent Change

Jan. 1970 From

Jan. 1970 From
January
1970
STANDARD METROPOLITAN
STATISTICAL AREAS*t
. 2,011,268
Birmingham
. .
. .
70,472
Gadsden
. . . .
236,079
Huntsville
. . . . .
672,506
Mobile
............. . .
386,720
Montgomery
. . . .
129,262
Tuscaloosa
. . . . .

December
1969

January
1969

Dec.
1969

Jan.
1969

2,026,191
75,572
232,575
642,848
414,754
130,569

1,915,657
69,095
210,806
600,148
367,563
130,152

+
+
-

1
7
2
5
7
1

+ 5
+ 2
+11
+ 12
+ 5
- 1

January
January____ December
_____________________ 1970________ 1969________ 1969

Dec.
1969

Jan.
1969

102,692
149,525
47,497
81,615
29,977
492,041
176,762
1,089,859
86,031

- 3
+14
— 4
+ 7
+ 2
+ 6
+ 0
- 1
+14

+15
+27
— 10
+29
- 7
+5
+20
+23
+24

Gainesville
.............
117,729
Lakeland
................
190,555
Monroe County
. . .
42,867
...................
105,970
Ocala
St. Augustine . . . .
27,811
St. Petersburg
. . .
518,958
Sarasota
................
211,768
Tampa
................... 1,343,323
Winter Haven . . . .
106,736

121,746
167,546
44,787
99,014
27,236
490,593
211,410
1,360,474
93,374

Athens
...................... 108,258
Brunswick
............
60,583
...................
112,753
Dalton
Elberton
................
16,749
Gainesville
.............
105,835
Griffin
...................
44,215
L a G r a n g e ................
24,036
Newnan
................
28,874
...................
96,742
Rome
Valdosta
................
68,774

118,188
58,159
128,685
17,216
92,984
45,917
25,155
30,066
103,497
67,783

104,144
55,133
125,948
17,155
78,393
39,181
24,876
25,597
88,054
61,332

- 8
+ 4
-1 2
- 3
+14
- 4
- 4
- 4
- 7
+ 1

+4
+10
-1 0
- 2
+35
+13
- 3
+13
+10
+12

Abbeville
................
Alexandria
.............
Bunkie
................
Hammond
.............
New I b e r i a .............
Plaquemine
.............
Thibodaux
.............

18,134
179,255
9,166
44,979
47,715
18,472
35,321

15,635
181,058
9,012
45,087
47,849
14,730
32,1.03

17,817
185,062
8,825
43,277
46,193
15,983
36,398

+16
- 1
+ 2
- 0
- 0
+25
+10

+ 2
- 3
+4
+4
+3
+16
- 3

Ft. LauderdaleHollywood
. .
Jacksonville
. .
Miami
.............
Orlando
. . . .
Pensacola
. . .
Tallahassee
. . .
Tampa-St. Pete.
W. Palm Beach

. 1,282,452
. 1,980,985
. 4,041,729
856,716
254,932
193,015
. 2,496,828
797,560

1,188,891
2,117,522
4,077,135
865,205
289,451
199,410
2,431,998
714,643

1,158,492
1,997,372
3,593,128
743,190
240,740
169,043
2,165,087
668,973

+ 8
- 6
- 1
- 1
-1 2
- 3
+ 3
+ 12

+ 11
- 1
+12
+15
+ 6
+ 14
+15
+ 19

Albany
.............
Atlanta
. . . .
Augusta
. . . .
Columbus
. . .
Macon
.............
Savannah . . . .

124,207
. 7,708,432
327,949
282,919
332,604
357,495

125,157
8,044,201
344,707
294,697
376,178
382,427

113,770
6,456,435
309,357
272,884
312,516
341,512

- 1
- 4
- 5
- 4
-1 2
- 7

+ 9
+ 19
- 6
+ 4
+ 6
+ 5

Baton Rouge
. .
Lafayette
. . . .
Lake Charles . .
New Orleans
. .

891,666
184,699
192,231
. 2,974,312

793,071
166,585
180,997
3,015,465

665,322
189,446
193,125
2,820,470

+ 12
+ 11
+ 6
- 1

+ 34
- 3
- 0
+ 5

158,581
864,755

173,542
854,612

132,737
759,490

- 9
+ 1

+ 19
+ 14

Hattiesburg
.............
Laurel
...................
Meridian
................
Natchez
................

58,595
55,295
85,509
NA

60,282
52,430
84,156
NA

71,718
40,305
81,213
NA

- 3
+ 5
+ 2
NA

-1 8
+37
+5
NA

871,470
586,013
1,897,973

881,706
630,543
2,110,042

766,233
600,216
2,443,931

- 1
- 7
-1 0

+ 14
- 2
-2 2

Pascagoula—
Moss Point . . . .
Vicksburg
.............
Yazoo C i t y .............

79,896
51,457
26,881

94,010
49,547
27,487

83,931
48,694
34,670

-1 5
+ 4
- 2

- 5
+6
-2 2

80,379
89,184
50,983

83,594
89,153
59,501

77,813
79,751
51,467

- 4
+ 0
-1 4

+ 3
+ 12
- 1

Bristol
...................
Johnson City
. . . .
K i n g s p o r t ................

94,967
103,101
172,872

103,996
107,797
189,825

91,008
94,619
186,410

- 9
- 4
- 9

+4
+9
- 7

49,175
114,391
269,981
117,082

46,067
107,654
272,604
106,312

50,921
121,804
286,893
106,974

+ 7

-

+ 6
- 1
+ 10

- 6
- 6

146,096

142,282

145,207

+ 3

+ 1

SIXTH DISTRICT, Total .
A l a b a m a * ................
F l o r i d a ! ...................
G e o r g ia !...................
Louisianat*
.............
M is s is s ip p it* .............
T e n n e s s e e t* .............

44,339,165
5,201,051
15,232,468
11,485,262
5,362,228
1,926,278
5,131,878

+
+
+
-

+9
+6
+12
+15
+9
+12
- 9

Biloxi-Gulfport
Jackson
. . . .
Chattanooga
. .
Knoxville
. . . .
Nashville
. . . .
THER CENTERS
Anniston
. . . .
Dothan
. . . .
Selma
.............
Bartow
. . . .
Bradenton
. .
Brevard County
Daytona Beach
Ft. MyersN. Ft. Myers

♦Includes only banks in the Sixth District portion of the state
M ARCH

1970




3

+ 9

tPartially estimated

^Estimated

45,075,662
5,253,868
15,153,705
11,938,671
5,243,153
1,921,707
5,564,558

40,802,215
4,899,474
13,628,151
10,017,696
4,913,879
1,720,909
5,622,106

2
1
1
4
2
0
8

r-Revised
47

D is t r ic t B u s in e s s C o n d it io n s

The pace of economic activity continues to moderate. Except for large projects, the construction
picture remains bleak. Consumer instalment credit posted a slight decline in January. According
to early reports, however, employment is holding up better than nationally, despite w eakness in some
areas. Higher interest payments on time deposits have helped reverse earlier deposit outflows, but
bank lending activity has moderated. Higher livestock prices were countered by declining crop prices.
In terms of dollar aggregates, construction
contract awards in January continued extremely
strong because of awards for large utilities,
factories, office and bank building, and Florida
apartment projects. T h i s b o o m i n t o t a l d o l l a r

sta tes

c o n s tr u c tio n

m e n t a t L o c k h e e d -G e o r g ia c o n t in u e s to fa ll o ff.

n ess

in

v o lu m e

r e s id e n tia l

m a sk ed

a

b u ild in g

c o n tin u in g

in

m any

so ft­

According to preliminary January returns, nonfarm employment, although soft in some areas,
is holding up better than the national average.
E m p lo y m e n t g a in e d in fo u r o f th e fiv e D is t r ic t
r e p o r tin g .

In

th e

A tla n ta

area,

e m p lo y ­

cen ters.

B u ild e r s a n d m o r tg a g e le n d e r s r e m a in p e s s im is ­
tic a b o u t h o u s in g p r o s p e c ts fo r 1 9 7 0 . T h e r e c e n t
tr e n d to w a r d lo w e r in te r e s t r a te le v e ls in

som e

Most member banks quickly posted the higher
time deposit interest rates permitted by recent
regulatory changes. M e m b e r s b a n k s o u t s i d e o f

se c to r s o f th e m o n e y a n d c a p ita l m a r k e ts h a s n o t

la r g e c it ie s w e r e a b le to e x p a n d th e ir v o lu m e o f

yet

S a v in g s

tim e d e p o s its in F e b r u a r y ; fo r th e o th e r b a n k s,

r e m a in

o u tflo w s s to p p e d . B a n k le n d in g g e n e r a lly h a s c o n ­

flo w s

p erm ea ted
to

th e

m o r tg a g e

m o r tg a g e
le n d in g

m a r k e t.

in s t itu t io n s

s tu n te d a n d m o r tg a g e c r e d it a v a ila b ilit y s e v e r e ly

tin u e d to a b a te s e a s o n a lly , b u t s o m e c a te g o r ie s

r e s tr ic te d .

of

b u s in e s s

le n d in g

have

d e c lin e d

m ore

th a n

u s u a l.

Early in the year, consum ers used instalment
credit from commercial banks more sparingly.
January

co n su m er

c r e d it o u ts ta n d in g

f e ll

fro m

Average prices received by farmers advanced
in February. T h e r i s e p r i m a r i ly r e f l e c t e d a n u p ­

t h e p r e v io u s m o n t h b e c a u s e o f r e d u c e d n e w lo a n

w ard

v o lu m e a n d in c r e a s e d r e p a y m e n ts . E s t im a t e s a r e

u s u a lly

m ovem ent
lo w

in

c itr u s

January

th a t a n n u a l d e p a r tm e n t sto r e s a le s in m a jo r m e t ­

h e ld

r o p o lita n a r e a s h a v e in c r e a s e d s lig h t ly le s s , p e r ­

o ffse t

c e n t a g e w is e , d u r in g 1 9 6 9 th a n in

s p it e o f th e r is e in

1968. T h e A t­

la n ta r e ta il fo o d p r ic e in d e x c o n tin u e d it s u p w a r d

in d e x

p u s h in J a n u a r y .

p r ic e s

le v e l.

s te a d y a s d e c lin in g e g g a n d
p r ic e

D ata on w h ich s ta t e m e n ts a re b a se d

48




h av e b e e n

a d ju s te d

at

its

fo r

hogs

of

an

un­

liv e s to c k

b r o ile r p r ic e s
and

c a ttle .

In

c itr u s p r ic e s , t h e t o ta l c r o p

1967.

NOTE:

w as

advances

fr o m

P r ic e s

w h e n e v e r p o s s ib le

lo w e s t

to

F ebruary

e lim in a te

seaso n al

le v e l

s in c e

in flu e n c e s.

MONTHLY REVIEW
MARCH 1970