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In t h i s i s s u e : Tobacco: The Nation's Oldest Commercial Crop Banking Notes: Shift in Consumer District Business Conditions T O o b l d a c c o e s t : C T o h m e N a t i o m e r c i a n l 's C r o p by Gene D. Sullivan T o b a cco has been an im p o rta n t c o m m e rc ia l c ro p in A m e ric a since th e tim e o f o u r p ilg rim fo re fa th e rs. Even b e fo re th e w h ite man reached th e A m e rica s, th e Ind ian s in b o th N o rth and S outh A m e ric a g re w to b a c c o and tra d e d it a m o n g them selves. T o b a cco q u ic k ly becam e o n e o f he N e w W o rld 's m o st im p o rta n t c o m m e rc ia l crops a fte r e s ta b lis h m e n t o f the ,a m e sto w n C o lo n y in 1612. In 1972, it ranked as th e fifth m ost im p o rta n t cash in c o m e -p ro d u c in g fie ld c ro p in th e U n ite d States, fo llo w in g soybeans, c o rn , w h e a t, and c o tto n in th a t o rd e r. In e ig h t eastern states, to b a c c o ranks fifth o r h ig h e r as a fa rm in c o m e p ro d u c e r, and it is th e n u m b e r o n e farm e n te rp ris e in th re e o f tho se states. D is tric t Versus N a tio n a l P ro d u c tio n M o s t o f th e n a tio n 's to b a c c o is g ro w n o u ts id e th e Sixth D is tric t states.1 N evertheless, to b a c c o p ro d u c tio n is an im p o rta n t e n te rp ris e in th is D is tric t and is th e n u m b e r on e cash in c o m e -p ro d u c in g c ro p in Tennessee, w h ic h also has th e largest n u m b e r o f to b a c c o farm ers w ith in th e re g io n . G e o rg ia 's to b a c c o p ro d u c tio n has at tim e s been g re ater than Tennessee's, b u t th e n u m b e r o f farm s are fe w e r and o th e r farm e n terprises o u tra n k to b a c c o as in c o m e p ro d u ce rs. F lo rid a is th e next m o st im p o rta n t to b a c c o state, w ith A la b a m a in fo u rth place. Ranked a m o n g o th e r en terprises, to b a c c o is o f m in o r im p o rta n c e in b o th states. A very sm all acreage o f P erique to b a c c o 2 g ro w n in Louisiana is w o rth y o f m e n tio n o n ly because o f its uniqueness. It is p ro d u c e d e n tire ly w ith in on e parish b u t is fam ou s w o rld w id e fo r its va lu e in to b a c c o blends. In th e D is tric t as a w h o le , to b a c c o acreage has d e c lin e d ra th e r sh a rp ly since 1945, b u t p ro d u c tio n has te n d e d to rem a in stable because y ie ld s have increased. Im p ro v e d farm te c h n o lo g y has been re sp o n sib le fo r rising y ie ld s as farm ers fo r m any years re sp o n d e d to p r o fit in ce n tive s to increase o u tp u t o n th e ir lim ite d acreages. The re ce n t m o v e m e n t to p o u n d a g e q u o ta s as a means o f re s tric tin g p ro d u c tio n appears to have in te rru p te d th e u p w a rd tre n d in yie ld s p e r acre. The v a lu e o f to b a c c o p ro d u c e d in b o th the n a tio n and th e D is tric t has soared since 1945. This has la rg e ly been a ttrib u ta b le to th e c o n tin u o u s p rice increases re su ltin g fro m p ric e -s u p p o rtin g o p e ra tio n s ca rrie d o u t u n d e r the iT h e s e states in c lu d e A la b a m a , F lo rid a, G e o rg ia , L o u isian a, M iss is sip p i, a n d T e n n e s s e e . 2 N a m e d f o r a n A c a d i a n F r e n c h m a n c r e d i t e d w i t h its d e v e l o p m e n t . M o n th ly R e vie w , Vol. LIX, No. 3. Free subscription and additional copies available upon request to the Research Department, Federal Reserve Bank of Atlanta, Atlanta, Georgia 30303. M A R C H 1974, M O N T H L Y R E V IE W TA BLE 1 T o b a c c o P ro d u c tio n Year Ga. Ala. Fla, La. Tenn. District States U. S. Acres Harvested 1,000 Acres 1945 1950 1955 1960 1965 0.30 0.40 0.60 0.46 0.50 103.80 93.20 102.00 71.30 56.20 21.90 22.20 25.00 18.70 15.50 0.30 0.40 0.20 0.32 0.28 124.20 103.10 85.10 73.90 69.15 250.50 219.30 212.90 164.68 141.63 1,821 1,599 1,495 1,142 976 1970 1971 1972 1973* 0.57 0.59 0.52 0.53 66.75 59.63 57.65 60.53 15.00 13.15 12.50 13.60 0.21 0.20 0.20 0.18 53.83 51.76 57.39 57.69 136.36 125.33 128.26 132.53 899 838 843 886 Production 1,000 lbs. 1945 1950 1955 1960 1965 1970 1971 1972 1973* 270 400 654 704 798 105,975 102,120 149,385 131,139 114,145 20,082 23,268 35,133 29,361 26,214 192 150 150 320 259 146,386 132,385 129,519 115,336 131,276 272,905 258,323 314,841 276,860 272,692 1,991,108 2,029,557 2,192,852 1,944,175 1,854,568 892 1,035 926 875 133,305 115,119 115,241 99,700 28,923 25,630 23,468 23,703 189 170 120 162 114,269 105,605 124,657 120,054 277,578 247,559 264,412 244,494 1,907,803 1,704,884 1,749,058 1,787,703 Yield Lbs. Per Acre 1945 1950 1955 1960 1965 900 1,000 1,090 1,530 1,595 1,021 1,096 1,465 1,839 2,031 917 1,048 1,405 1,571 1,691 640 375 750 1,000 925 1,179 1,284 1,522 1,631 1,898 1,089 1,178 1,479 1,681 1,925 1,094 1,209 1,466 1,703 1,898 1970 1971 1972 1973* 1,565 1,754 1,781 1,651 1,997 1,931 1,999 1,647 1,928 1,949 1,877 1,743 900 850 600 900 2,123 2,040 2,172 2,081 2,036 1,975 2,069 1,845 2,121 2,035 2,076 2,017 Farm Value $1,000 1945 1950 1955 1960 1965 96 188 310 379 495 42,814 50,958 72,452 77,372 79,092 10,925 19,382 23,609 27,276 27,536 125 90 90 234 192 54,748 59,441 67,609 70,009 85,336 108,708 130,059 164,070 175,270 192,651 848,216 1,048,545 1,165,643 1,183,802 1,206,649 1970 1971 1972 633 756 778 102,260 91,054 99,582 30,278 26,616 26,433 151 139 98 79,557 79,983 91,867 212,879 198,648 218,758 1,389,311 1,340,626 1,442,801 Sources: USDA, Agricultural Statistics 1972; Annual Report on Tobacco Statistics 1972; Crop Production, November 9, 1973. ^Indicated to b a c c o pro g ra m . In 1973, h o w e ve r, stro n g w o r ld w id e d e m a n d pushed to b a c c o prices w e ll ab ove s u p p o rt levels, p a rtic u la rly ea rly in th e season. Thus, even th o u g h D is tric t p ro d u c tio n was d o w n in 1973, the fa rm v a lu e o f th e c ro p was lik e ly to be m uch h ig h e r than in 1972. G o v e rn m e n t P rogram s A lm o s t fro m the o u tse t o f the to b a c c o in d u stry's d e v e lo p m e n t, th e c o m m o d ity was so im p o rta n t to the e c o n o m ic w e lfa re o f p ro d u ce rs th a t de m an ds arose fo r som e o rg a n iz e d fo rm o f c o n tro l o ve r p ro d u c tio n and m a rk e tin g . P roducers w e re s u sce p tib le to e c o n o m ic d e va sta tio n fro m the FED ERA L RESERVE B A N K O F A T LA N TA o v e rp ro d u c tio n w h ic h re g u la rly fo llo w e d p e rio d s o f im p ro v e d prices. These cycles e v e n tu a lly led to c o n tin u o u s g o v e rn m e n t pro gra m s de sig ned to sta b iliz e p ro d u c tio n fro m year to year. The A g ric u ltu ra l A d ju s tm e n t A c t o f 1938 c o n v e rte d e a rlie r pro gra m s to p e rm a n e n t le g isla tio n . U n d e r this A ct, to b a cco p ro d u c tio n has been rig id ly c o n tro lle d e ith e r by acreage a llo tm e n ts o r by s tric t m a rk e tin g a llo tm e n ts k n o w n as p o u n d a g e quotas. In som e lo c a tio n s b o th measures are in e ffe ct. The acreage a llo tm e n t specifies th e n u m b e r o f acres th a t m ay be g ro w n by an in d iv id u a l p ro d u c e r, based o n th e fa rm 's h isto rica l o u tp u t o f the crop . Because o f to b a c c o p ro d u c tio n 's high la b o r re q u ire m e n ts, the acreage a llo tm e n t pe r farm 31 T A B LE 2 G o v e rn m e n ta l R e v e n u e from T o b a c c o P ro d u c ts ($ Mil.) F iscal year All Governme Federal State Local 1963-64 1964-65 1965-66 1966-67 1967-68 2,053 2,149 2,074 2,080 2,122 1,196 1,284 1,541 1,615 1,886 84 102 105 116 100 3,333 3,535 3,720 3,811 4,108 1968-69 1969-70 1970-71 1971-72 1972-73 2,138 2,094 2,207 2,207 2,229 2,056 2,308 2,536 2,830 3,010 97 129 140 143 146 4,291 4,531 4,883 5,180 5,385 Source: USDA, Tobacco Situation, Sept. 1973 was o rig in a lly q u ite sm all and has been p ro gre s sively w h ittle d aw ay to o ffs e t risin g yie lds. In o rd e r to p ro d u c e m a xim u m o u tp u t on th e ir sm all a llo tm e n ts , g ro w e rs te n d e d to u tiliz e te c h niqu es th a t so m e tim e s lo w e re d to b a c c o q u a lity . This b ro u g h t a b o u t th e a d o p tio n o f th e p o u n d a g e q u o ta , w h ic h spe cifie s th e n u m b e r o f p o u n d s th a t a g ro w e r is e n title d to m a rk e t d u rin g a given year. U n d e r p o u n d a g e qu otas, a g ro w e r has a s tro n g e r in c e n tiv e to p ro d u c e a q u a lity o f to b a c c o th a t w ill b rin g th e best p ric e p e r p o u n d . U n d e r acreage c o n tro ls alo n e , g u ara ntee d m in im u m prices on to ta l p ro d u c tio n o fte n in d u c e d g ro w e rs to a d o p t te ch n iq u e s th a t w o u ld m a x im iz e y ie ld s even th o u g h q u a lity was red uce d. In lo c a litie s w h e re p o u n d a g e q u otas a lo n e p re v a il, a g ro w e r has gre ater fre e d o m in d e te rm in in g h o w m u ch la nd he w ill c o m b in e w ith o th e r resources to p ro d u c e th a t p o u n d a g e ; and a h ig h e r q u a lity p ro d u c t has usu ally resulted. A g ro w e r is a llo w e d to p ro d u c e and m a rk e t up to 110 p e rc e n t o f his p a rtic u la r p o u n d a g e q u o ta in any given year, b u t th e fo llo w in g yea r his q u o ta w ill be re d u ce d by a c o rre s p o n d in g a m o u n t. O n the o th e r hand, if th e g ro w e r happens to fa ll s h o rt o f his a llo tm e n t, he can g ro w m o re to b a c c o in the su cce e d in g year in o rd e r to m ake up the d e fic it. This has g e n e ra lly led to a m o re satisfa cto ry m a rk e t in g a rra n g e m e n t fo r g ro w e rs, and th e y c o n tin u e to a p p ro v e p o u n d a g e qu otas in c o n ju n c tio n w ith acreage c o n tro ls in G eo rg ia , A la ba m a, and F lorida and in lie u o f acreage c o n tro ls in Tennessee. In a d d itio n to p ro d u c tio n c o n tro ls , th e U. S. D e p a rtm e n t o f A g ric u ltu re clo se ly supervises m arke t o p e ra tio n s in to b a c c o g ro w in g areas. Both state and Federal g o ve rn m e n ts reg ulate th e n u m b e r o f buyers a llo c a te d to in d iv id u a l m arkets, th e le n g th o f tim e m arkets m ay o p e ra te , and the sp e c ific c o n d itio n s u n d e r w h ic h m arkets m ay be he ld . W arehouses m ust be license d by state a u th o ritie s . In this w ay, w arehouses in any p a rtic u la r g ro w in g area are lim ite d to th e n u m b e r co n sid e re d ju s tifia b le fo r 32 o rd e rly m a rk e tin g c o n d itio n s . L im ite d m arkets and lim ite d p e rio d s o f o p e ra tio n are m a jo r sources o f d issa tisfa ctio n a m o n g gro w e rs, w h o o fte n fe e l th e y have n o t had a m p le tim e o r o p p o rtu n ity to dispose o f th e ir cro p . T o b a cco prices re ce ive d by g ro w e rs are s u p p o rte d at a p a rity level c a lc u la te d to m a in ta in th e a p p ro x im a te re la tio n s h ip e xistin g b e tw e e n to b a c c o prices and th e prices o f go od s and services pu rcha sed by farm ers in 1959. For m an y years p rio r to this, to b a c c o prices w e re s u p p o rte d at 90 p e rc e n t o f th e 1910-14 p a rity level. Price s u p p o rts are a c c o m p lis h e d th ro u g h th e T o b a cco S ta b iliz a tio n C o rp o ra tio n , an agency w ith in th e U S D A w h ic h places a m in im u m b id o n each lo t o f to b a c c o a u c tio n e d . Unless th e b id is raised b y o th e r buyers, th e S ta b iliz a tio n C o rp o ra tio n takes possession o f th e lo t. The C o m m o d ity C re d it C o rp o ra tio n issues n o n re co u rse loans o n th e to b a c c o , w h ic h e v e n tu a lly m oves in to g o v e rn m e n t-o w n e d stocks if th e loans are n o t red ee m ed. T he e ffe c t o f this o p e ra tio n has been to m a in ta in prices to d o m e s tic g ro w e rs w e ll a b o ve tho se in w o r ld m arkets in m o st years.3 D u tie s have been le v ie d to disco u ra g e d o m e s tic m a n u fa ctu re rs fro m im p o rtin g lo w e r-p ric e d fo re ig n tob accos. This p ro vid e s p ro te c tio n fo r th e d o m e s tic g ro w e r b u t also increases th e prices p a id by con sum e rs. Price increases a ttrib u ta b le to p ro te c tiv e d u tie s and g ro w e r subsidies have been sm all, h o w e v e r, co m p a re d to tho se re s u ltin g fro m va rio u s taxes le vie d on re ta il sales o f to b a c c o p ro d u c ts . T o b a cco has been a p rim e reve nu e e a rn e r fo r b o th state and n a tio n a l g o ve rn m e n ts fo r m any years. In fact, taxes a c c o u n t fo r th e largest sin gle share in th e p ric e o f a package o f cig are ttes. State taxes a lo n e range fro m a lo w o f 2.0 cents p e r package in N o rth C a ro lin a to a h ig h o f 21 cents in C o n n e c tic u t and average a b o u t 11.5 cents n a tio n w id e . Federal taxes c la im an a d d itio n a l 8 cents, b rin g in g th e average tax to ta l to a ro u n d 20 cents pe r package o f 20 cigarettes. T o ta l g o v e rn m e n t reve nu e fro m sales o f all to b a c c o p ro d u c ts exceeded $5.3 b illio n in fiscal 1972. Use o f O ff-fa rm In p u ts For m ost o f its h isto ry, to b a c c o p ro d u c tio n has been la b o r-in te n s iv e w ith o n ly m o d e ra te m e c h a n iz a tio n . 3ln recent years, prices received by U. S. growers of flue-cured tobacco have averaged about 25 cents per pound above the prices of flue-cured tobacco exported by Rhodesia, Zambia, and Malawi, thought by some to be typical of world tobacco market prices. At that rate, the calculated income support received by American tobacco growers from a 1.8-billion pound crop would amount to about $450 million, or approximately one-third of the total value of recent crops. The cost borne by the government is limited to the amount acquired and disposed of below cost. In the mid1950's, government purchases approached 20 percent of annual production, but acquisitions have averaged less than 5 percent during the 1970's. Thus, the bulk of the income support has been borne directly by the consumer. M A R C H 1974, M O N T H L Y R E V IE W Use o f o ff-fa rm in p u ts has been ra th e r lig h t co m p a re d w ith m o st c o m m e rc ia l crop s in the U n ite d States. R ecent changes in som e areas have b ro u g h t w id e r a d o p tio n o f la b o r-sa vin g in p u ts. In flu e -c u re d to b a c c o p ro d u c tio n , a m e ch a n ica l harvester has d ra s tic a lly re d u ce d la b o r hours, b u t th e m a ch in e is s till in lim ite d use. T able 3 show s th a t la b o r acco u n ts fo r a b o u t o n e -h a lf o f th e to ta l v a ria b le co st o f to b a c c o p ro d u c tio n . O th e r in p u ts th a t have g ro w n in im p o rta n c e as yie ld s have increased are: fe rtiliz e r and lim e ; ch e m ica ls fo r c o n tro l o f insects, diseases, suckers, and w e e d s; fu e l; and n u m e ro u s m isce lla n e o u s expenses associated w ith increa sing m e c h a n iz a tio n . E x p e n d itu re p e r acre varies fro m o n e area to a n o th e r, b u t U S D A stud ies in d ic a te a ty p ic a l p ro d u c tio n cost o f a b o u t $740 p e r acre. For th e D is tric t as a w h o le , 135,000 to b a c c o a llo tm e n ts , g ro w n o n 133,000 acres, are e stim a te d to ge ne rate an nu al p ro d u c tio n e x p e n d itu re s o f a b o u t $100 m illio n , w h ic h flo w s to w o rk e rs and m erch an ts s u p p ly in g o ff-fa rm in pu ts. A b o u t 65,000 D is tric t farm ers g ro w to b a c c o and, o f course, m an y o f th e m c o n tro l m o re than on e a llo tm e n t. N a tio n a lly , th e re w e re in excess o f 530,000 a llo tm e n ts issued to g ro w to b a c c o in 1972. T he a llo tm e n ts averaged a b o u t 1.6 acres and w e re o p e ra te d by several h u n d re d th o u sa n d in d iv id u a l p ro d u ce rs. Processing and M arketing T o b a cco 's m a jo r c o n trib u tio n to th e re g io n 's e c o n o m y occu rs at th e farm le ve l, b u t th e m o v e m e n t o f th e harvested le a f fro m th e farm in to m a rk e tin g , processing, and d is trib u tio n fa c ilitie s also generates s ig n ific a n t e c o n o m ic a c tiv ity . W a re h o u s in g is th e firs t m a jo r o ff-fa rm a c tiv ity in th e m a rk e tin g cha in . This is w h e re th e w o r ld fa m o u s to b a c c o a u ctio n s o ccu r. Farm ers b rin g th e ir in d iv id u a l b u n d le s in to a w a re h o u se w h e re th e y are h e ld te m p o ra rily u n til sold at a u c tio n . W a re h o u se o w n e rs ty p ic a lly charge 4 p e rc e n t o f gross reve nu e fo r th e services th e y p ro v id e in g iv in g th e fa rm e r space fo r his to b a c c o c ro p , b rin g in g in buyers, and c o n d u c tin g th e au ction s. A ty p ic a l w a re h o u se m a n e m p lo y s six to e ig h t p e o p le to p ro v id e necessary services d u rin g th e m a rk e tin g season. W ith in th e to b a c c o -g ro w in g areas o f th e D is tric t, th e re are o v e r 200 w areh ouse s used fo r m a rk e tin g d u rin g a six- to e ig h t-w e e k p e rio d each year. D u rin g th e o f f season, these m ay be used fo r storage o f a v a rie ty o f p ro d u c ts e ith e r by th e o w n e r o r b y o th e r m erch an ts and dealers w illin g to pay in sura nce p re m iu m s o n th e w a reh ouse s d u rin g th e p e rio d o f use. S om e tim es th e y m ay s it id le . M o s t o f th e to b a c c o p ro d u c e d w ith in th e D is tric t m oves e lse w h e re fo r processing. C ig a re tte to b a c c o is ty p ic a lly s h ip p e d d ire c tly fro m w a reh ouse s to storage sites at m a n u fa c tu rin g pla n ts lo c a te d in FED ERA L RESERVE B A N K O F A T LA N TA TABLE 3 Estimated Inputs and Variable Costs in Tobacco Production Quantity Value Estimated* Total Costs District States (Per Acre) Preharvest Inputs: Labor Seed & Plant Bed Fertilizers Power & Equipment Insecticides & Fungicides Herbicides Insurance Interest 92.98 hrs. 19.00 cwt. 18.16 hrs. ------------------------- ------ Total Preharvest Cost Harvest Inputs: Labor 255.90 Power & Equipment 27.00 Heating Fuel 3.30 — Sticks & Twine Marketing Charge 18.00 Total Harvest Cost Total Variable Cost hrs. hrs. gal. cwt. $101.32 32.42 59.60 34.38 $13,427,940 4,296,623 7,898,788 4,556,381 24.76 17.50 50.00 13.00 3,281,443 2,319,275 6,626,500 1,722,890 $332.98 $44,129,840 $267.60 30.12 59.40 12.50 36.00 $35,465,028 3,991,804 7,872,282 1,656,625 4,771,080 $405.62 $53,756,819 $738.60 $97,886,659 Source: USDA, Selected U. S. Crop Budgets, Yields, Inputs, and Variable Costs, Volume 1, Southeast Region, ER S 457, April 1971. iCost per acre multiplied by total acreage of tobacco for harvest in 1973. states o u ts id e th e D is tric t. C ig a re tte to b a c c o pro cessing w ith in th e D is tric t is lim ite d to leafs te m m in g and re d ry in g o p e ra tio n s. A Tennessee co m p a n y engaged e xclu sive ly in le a f pro cessing op era te s several plan ts in th e area. In a d d itio n , fiv e m a jo r co m p a n ie s are in v o lv e d in m a n u fa c tu rin g c h e w in g to b a cco , sm o k in g to b a cco , and s n u ff in Tennessee. These plan ts lis t a b o u t 800 fu ll- tim e e m p lo ye e s, w ith seasonal e m p lo y m e n t ru n n in g m u ch h igh er. T h o u g h F lo rid a is n o t a m a jo r to b a c c o -p ro d u c in g state, it acco u n ts fo r m o st o f th e D is tric t's cig a r m a n u fa c tu rin g . This in d u s try is a m a jo r user o f im p o rte d to b a cco s as w e ll as th e sp e cia lize d cig ar tob accos p ro d u c e d w ith in th e D is tric t. T he state d ire c to ry o f in d u s try id e n tifie s 37 d iffe re n t firm s engaged in to b a c c o m a n u fa c tu rin g . T o ta l e m p lo y m e n t in these firm s a p pro ache s 5,000 o n a fu ll- tim e annu al basis. A lth o u g h m o st o f these m a n u fa ctu re rs are ra th e r sm all, at least n in e firm s e m p lo y m o re tha n 100, and o n e firm lists 1,500 fu ll- tim e em p lo yees. A la ba m a and G e o rg ia re p o rt a to ta l o f fiv e cig ar m a n u fa c tu rin g co m p a n ie s e m p lo y in g a to ta l o f 1,300 fu ll- tim e e m p lo ye e s. A c ig a re tte -m a n u fa c tu r in g p la n t is re p o rte d ly p la n n e d fo r G e o rg ia w ith in th e near fu tu re . Louisiana co n ta in s th re e sm all co m p a n ie s, w ith a c o m b in e d e m p lo y m e n t o f 80, w h ic h m a n u fa c tu re b le n d s o f P erique to b a cco , p rim a rily fo r th e e x p o rt trade. 33 A lth o u g h th e n u m b e r has d e c lin e d in the past decade, a p p ro x im a te ly 7,200 fu ll- tim e e m p lo yees are d ire c tly engaged in som e fo rm o f to b a cco m a n u fa c tu rin g in th e Sixth D is tric t. A t average an nu al earnings o f $7,700 p e r w o rk e r, these w o rke rs c o n trib u te an e s tim a te d $ 5 5 .4 -m illio n to ta l in c o m e to th e re g io n 's e c o n o m y each year. The T o b a cco In s titu te in d ica te s th a t th e to ta l m a n u fa c tu rin g e m p lo y m e n t in th e in d u s try as a w h o le a m o u n te d to a b o u t 75,000 p e o p le in 1972. Thus, th e to ta l annual p a y ro ll ge ne rated by U. S. to b a c c o m a n u fa c tu rin g a c tiv itie s is an e sti m ated $578 m illio n . In d u s try F ina ncing Both c o m m e rc ia l banks and farm c re d it agencies are in v o lv e d in fin a n c in g to b a c c o at the farm level. C o m p a re d w ith o th e r crops, to b a c c o fin a n c in g is n o t a large v e n tu re fo r m o st lenders because acreage a llo tm e n ts are e x tre m e ly sm all and th e ty p ic a l g ro w e r does n o t b o rro w a large a m o u n t to p ro d u c e his cro p . N evertheless, spokesm en fo r a g ric u ltu ra l lenders in d ic a te th a t to b a c c o is im p o rta n t to th e ir areas, and th e y are q u ic k to a d m it th a t to b a c c o is a m a jo r d e te rm in a n t o f th e e c o n o m ic w e lfa re o f c o m m u n itie s w h e re its p ro d u c tio n is c o n c e n tra te d . The re d u c tio n in n u m b e r o f to b a c c o pro d u ce rs th a t is a c c o m p a n y in g th e a d ve n t o f m e ch a n ize d ha rvestin g seems lik e ly to change fin a n c in g at the p ro d u c e r level. In th e flu e -c u re d to b a c c o area, e ffo rts are alrea dy b e in g m ade to assem ble m uch larger acreages on in d iv id u a l farm s, a lth o u g h c u rre n t restraints against m o v in g a llo tm e n ts across c o u n ty lines are h in d e rin g this d e v e lo p m e n t. N evertheless, m any g ro w e rs have a lre a d y succeeded in c o m b in in g a llo tm e n ts in to tracts o f 30 acres o r m ore . A m e ch a n ize d ha rvester c o stin g a b o u t $30,000 can be e c o n o m ic a lly ju s tifie d on o p e ra tio n s o f this scale. M a c h in e ry o f th is s o p h is tic a tio n and v a lu e w ill in v o lv e le n d in g agencies in to b a c c o fin a n c in g at the fa rm level to a g re a te r extent. T he w a re h o u s in g o p e ra tio n is c u rre n tly a m a jo r user o f c re d it in to b a c c o -p ro d u c in g areas. W a re house o p e ra to rs u su ally d o n o t b u y large a m o un ts o f th e c ro p , b u t th e y generate a sub stantia l v o lu m e o f c re d it fo r c o m m e rc ia l banks d u rin g th e m a rk e tin g season. Buyers w h o purchase to b a c c o at a p a rtic u la r w a re h o u se a u c tio n u su ally pay w ith checks w ritte n o n banks lo c a te d o u ts id e th e area. Im m e d ia te ly a fte r th e sale, p ro d u ce rs receive p a ym e n t in checks d ra w n on th e w a re h o u se m a n 's a c c o u n t at th e local bank. Bank fin a n c in g p ro vid e s th e im m e d ia te c re d it ne ed ed by w a re h o u se m e n to pay o f f pro d u ce rs b e fo re bu ye rs' checks are c o lle c te d . W h e re buyers w r ite checks on banks in d ista n t citie s, a large a m o u n t o f c re d it is som e tim es e x te n d e d u n til these checks are cleared. For exa m ple, d u rin g th e 1973 m a rk e tin g season, 34 Japanese buyers m ade d ire c t purchases in to b a c c o m arkets w ith checks d ra w n o n C a lifo rn ia banks. A c o n s id e ra b ly lo n g e r c le a rin g tim e is re q u ire d fo r these checks as co m p a re d to tho se issued by d o m e s tic buyers h e a d q u a rte re d in ne arb y areas. M a jo r to b a c c o co m p a n ie s a llo w stocks to age fo r a p p ro x im a te ly th re e years b e fo re pro cessing in to fin a l p ro d u cts. D u rin g th is p e rio d , th e to b a c c o in v e n to ry ties u p a gre at deal o f c a p ita l, w h ic h m ay be s u p p lie d e ith e r by th e c o m p a n y 's in te rn a l fu n d s o r by large c o m m e rc ia l banks. T o b a cco 's p ro m in e n t ro le in th e e x p o rt m a rk e t in vo lve s th e use o f c re d it in a n o th e r m an ne r. Bankers, b o th d o m e s tic and in te rn a tio n a l, b e co m e in v o lv e d in fin a n c in g to b a c c o th a t m oves in in te r n a tio n a l trade. W h e n to b a c c o is pla ce d o n b o a rd ship to m o ve in to th e e x p o rt m a rke t, th e s h ip p e r ty p ic a lly receives p a y m e n t by a d ra ft o n a b a n k at th e d e s tin a tio n p o in t. T hat ba nk fina nce s the tra n sa ctio n u n til th e s h ip m e n t is d e liv e re d to the b u ye r, w h o the n settles w ith th e ba n k fo r th e c re d it e xte n d e d . Thus, c re d it e q u iv a le n t to th e to b a c c o 's va lu e in tra n s p o rt is e x te n d e d fo r th e p e rio d o f sh ip m e n t. F oreign M a rke ts U. S. to b a c c o acreage is less than 10 p e rc e n t o f th e w o r ld acreage b u t acco u n ts fo r n e a rly 20 p e rc e n t o f p ro d u c tio n ; and U. S. to b a c c o m akes u p o v e r o n e fifth o f to ta l w o rld to b a c c o exports. T he high q u a lity o f U. S. to b a c c o has c o m m a n d e d a p rim e p o s itio n in fo re ig n m arkets fo r m any years. F lu e -cu re d to b a c c o , p ro d u c e d in F lo rid a , G eo rg ia , and A la b a m a , is o n e o f th e p rim e types m o v in g in e x p o rt m arkets. It is e stim a te d th a t a m a jo r p o rtio n o f flu e -c u re d to b a c c o p ro d u c e d w ith in th e Sixth D is tric t e v e n tu a lly enters th e e x p o rt tra d e .4 U n til 1973, m o re and m o re U. S. to b a c c o had been m o v in g to fo re ig n m arkets by means o f va rio u s e x p o rt subsidies, w h ic h w e re te rm in a te d e ffe c tiv e w ith th e 1973 c ro p . Because g ro w e rs ' prices had been s u p p o rte d a b ove w o rld p ric e levels, these subsidies w e re re q u ire d to m o ve g o v e rn m e n t stocks in to w o rld trade. M u c h to b a c c o had m o v e d u n d e r the Food fo r Peace Program (P u b lic Law 480) w h ic h e n title s fo re ig n c o u n trie s to a c q u ire surp lu s c o m m o d itie s fro m th e U. S. G o v e rn m e n t u n d e r a v a rie ty o f c o s t-re d u c in g arra ng em en ts. T he b a rte r p ro v is io n s o f P u b lic Law 480, w h e re b y th e g o v e rn m e n t exch an ge d su rp lu s c o m m o d itie s fo r ce rta in stra te g ic m aterials, had a c c o u n te d f o r a large, c o n tin u o u s ly in cre a sin g share o f g o v e rn m e n t- 4 E x p o rts o f u n m a n u f a c tu r e d to b a c c o fro m th e M ia m i C u s to m s R e g io n in 1 9 7 2 w e r e v a lu e d at $ 2 9 3 m il l io n . A b o u t t w o - t h ir d s o f t h i s t o b a c c o is e s t i m a t e d t o h a v e o r i g i n a t e d w i t h i n t h e S i x t h F e d e ral R e se rv e D istrict sta te s, re fle c tin g th e m a jo rity o f th e annual crop. M A R C H 1974, M O N T H L Y R E V IE W Policy Considerations T A B LE 4 Government-Financed Versus Other Exports of Unmanufactured Tobacco Year Ending June 30 Government Financed1 Other Sales Government Financed as Percent of Total (Percent) (Million Pounds) Average: 1955-59 1960 1965 1970 1971 1972 19732 49.2 94.5 49.9 447.9 362.1 434.1 9.9 20.7 10.3 201.8 242.4 240.9 219.7 369.2 312.3 283.8 349.9 35.3 43.7 46.0 38.6 1Includes primarily exports under Public Law 480 and short-term Commodity Credit Corporation credit P relim inary Source: USDA, Tobacco Situation, September 1973 fin a n ce d to b a c c o exports. In re ce n t years, exports in v o lv in g th e g o v e rn m e n t had a cc o u n te d fo r up to 46 p e rc e n t o f to ta l U. S. to b a c c o exports. W o r ld to b a c c o prices increased in 1973, and c o m m e rc ia l exp o rts o f U. S. to b a c c o b e n e fite d fro m cu rre n c y re a lig n m e n ts and sh o rtfa lls in fo re ig n p ro d u c tio n . D e sp ite th e rem o val o f subsidies, the e x p o rt m a rk e t fo r U. S. to b a c c o appears th e b rig h t est in m any years. T o b a cco c o n s u m p tio n is in crea sing as personal in com e s rise in a m a jo rity o f th e c o u n trie s o f th e w o rld . The d e v e lo p m e n t o f s y n th e tic to b a c c o p ro d u c ts , re p u te d ly less h a zard ous to he a lth , has n o t m a te ria lly a lte re d th e b risk w o rld w id e to b a c c o d e m a n d expressed in e x p o rt m arkets in 1973. R e striction s on th e a m o u n t o f ch e m ica l residues th a t can be c o n ta in e d u p o n to b a c c o leaves in som e in te rn a tio n a l m arkets caused grave co n ce rn am o n g to b a c c o grow ers. A d ju s tm e n ts have been rap id , h o w e ve r, and e ith e r o ffe n d in g ch e m ica ls have been e lim in a te d o r a p p lic a tio n p ro ce d u re s m o d ifie d to m e e t restrictio ns. FE D E R A L R ESERVE B A N K O F A T LA N T A T here are p ro b a b ly no pro gra m s in w h ic h c o n flic tin g g o ve rn m e n ta l p o lic y is m o re o b v io u s than in those in v o lv in g th e to b a c c o in d u stry. The g o v e rn m e n t is h e a vily in v o lv e d in re g u la tin g to b a c c o p ro d u c tio n because o f th e c ro p 's lo n g -s ta n d in g im p o rta n c e to the n a tio n 's e c o n o m y and because o f th e large n u m b e r o f p e o p le a ffe c te d by th e in d u stry. A t the same tim e , th e g o v e rn m e n t has th e re s p o n s ib ility o f p ro te c tin g th e he a lth and safety o f its citiz e n s by p o lic in g p o te n tia lly hazardous p ro d u c ts m a rke te d fo r hu m an c o n s u m p tio n . These vast re s p o n s ib ilitie s place branches o f th e g o v e rn m e n t in c o n flic tin g p o s itio n s w ith regard to th e ir sp e c ific re g u la tio n s g o v e rn in g to b a cco . T o su b sid ize the p ro d u c tio n and e x p o rta tio n o f a c o m m o d ity — som e fo rm s o f w h ic h have been la b e le d as hazardous to h e a lth — is a c o n flic t th a t seems lik e ly to arouse g ro w in g c o n s te rn a tio n as tim e passes. M e a n w h ile , re ce n t progress in m e c h a n iz a tio n o f to b a c c o p ro d u c tio n m ay q u ic k ly reshape the s tru c tu re o f to b a c c o fa rm in g . As farm sizes g ro w , by o n e m eans o r a n o th e r, to a c c o m m o d a te large m achines, m any o p e ra to rs w ill be released fro m to b a c c o p ro d u c tio n . S h o u ld th e ranks o f to b a c c o p ro d u ce rs and th e ir p o litic a l in flu e n c e d w in d le s ig n ific a n tly in th e fu tu re , changes in to b a c c o le g is la tio n m ay co m e m o re easily. In fact, th e in itia tiv e fo r som e changes m ay arise fro m gro w e rs them selves as th e y seek fre e d o m to m ove to b a c c o p ro d u c tio n in to th e m o d e rn farm era o f large-scale p ro d u c tio n and lo w u n it costs. In th a t s tru ctu re , to b a c c o w ill p ro b a b ly rem a in an im p o rta n t c ro p n a tio n a lly as w e ll as in th e reg io n fo r years to com e. H o w e ve r, th e sub sid y p ro v id e d d ire c tly to gro w e rs th ro u g h e v e r-ris in g p ric e su p p o rts and, in d ire c tly , to o th e r segm ents o f th e in d u s try m ig h t be sha rply c u rta ile d if n o t a lto g e th e r e lim in a te d . In d e e d , th e re is som e e v id e n c e th a t s im ila r pro g ra m changes are n o w b e in g c o n s id e re d b y p o lic y fo rm u la to rs . ■ 35 B A N K IN G S T A T IS T IC S Billion $ DEPOSITS* -3 6 ’ 34 *3 2 •30 -2 8 ■20 -1 4 16 -1 0 Other Securities U.S. Gov’t. Securities .4 ■*......... ** ” 'V, I I I I I I I I I I I I I I I I I II I I I I I I I I II J J DJ J 1972 DJ 1973 I I II I I I I I I i l l J J J DJ 1972 1974 J 1973 LATEST MONTH PLOTTED: FEBRUARY *F ig u res a re fo r th e last W e d n e s d a y o f e a c h m o n th * *D aily a v e ra g e fig u res. SIXTH DISTRICT S h i f t in BANKING C o n s u m ND TES e r D e p o s i t s S IX T H D IS T R IC T M E M B E R B A N K T IM E D E P O S I T S ( In c lu d e s C D ’s over $100,000) December 1973 Amount (million $) DISTRICT ....................... . . . 19,644.3 % Change From Year Ago + 21.0 . Anniston-Gadsden . . . Birmingham . . . . . Dothan .............. . M obile................. . Montgomery . . . . . . . . . . . . 2,859.5 . 164.1 . 1,271.6 . 139.5 . 511.6 . 510.6 + + + + + + 18.6 14.2 18.8 16.1 24.0 16.3 . . . . . . . . . . . . . . . . . . 7,445.5 713.0 3,477.4 1,009.5 187.6 2,058.1 + + + + + + 21.6 24.2 21.6 21.5 34.3 19.9 . . . . . . . 1,084.6 Jackson .............. . . . 682.4 Hattiesburg-Laurel-Meridiani 270.2 Natchez .............. . . . 66.9 + + + + 34.2 33.8 35.5 21.0 ALABAMA ....................... FLORIDA ........................... Jacksonville . . . . M ia m i................. O r la n d o .............. P e n sa c o la ........... Tampa-St. Petersburg M ISSISSIPPI* Amount (million $) GEORGIA ........................... Atlanta ................. A u g u s t a ................. Columbus1 ........... M a co n .................... Savannah .............. South Georgia . . . . L O U IS IA N A * ....................... Alexandria-Lake Charles Baton Rouge ........... Lafayette-Iberia-Houma New O rle a n s........... T EN N ES S EE* ....................... Chattanooga........... Knoxville .............. Nashville .............. Tri-Cities1 . . . . . . % Change From Year Ago . 2,957.3 . 2,013.5 284.5 216.2 145.1 285.3 91.2 + + + + + + + 22.0 28.2 11.4 19.4 3.5 10.5 5.9 . 2,409.6 239.4 368.3 194.6 . 1,629.1 + 17.8 + 13.6 — . 2,887.8 472.5 476.4 . 2,062.1 103.8 + + + + 3.3 + 16.6 + 24.5 19.4 20.9 11.2 26.8 — 31.7 Note: Figures shown are for trade and banking areas, which include several counties surrounding central cities. Boundaries of some areas do not coincide with state lines. JYear-ago changes reflect structural changes in series. ‘ Represents that portion of the state in the Sixth District. 36 M A R C H 1974, M O N T H L Y R E V IE W In te re s t-b e a rin g d e p o sits at D is tric t m e m b e r banks g re w 21 p e rc e n t d u rin g 1973, a c re d it re stra in t year w h e n d e m a n d d e p o sits o th e r tha n in te rb a n k d e posits increased o n ly 1 pe rce n t. A lth o u g h th e g ro w th o f la rg e -d e n o m in a tio n m o n e y m a rke t tim e de po sits a ttra c te d m u ch a tte n tio n , th e level and c o m p o s itio n o f co n s u m e r tim e and savings deposits also cha ng ed s ig n ific a n tly . By O c to b e r 1973, sm a lld e n o m in a tio n co n su m e r d e po sits had increased $633 m illio n o v e r th e p re vio u s year's $11,1 7 8 -m il lio n to ta l. This increase cam e d e sp ite a n tic ip a tio n in late s p rin g th a t these fu n d s m ig h t flo w o u t o f banks because o f h igh in te re st rates a va ila b le to savers in th e o p e n m arke t. In te re st rates banks pay o n co n s u m e r tim e and savings d e po sits vary w ith m a tu rity . Passbook sav ings a cco un ts, w h ic h have n o s tip u la te d m a tu rity , u su ally d ra w a lo w e r re tu rn than d o tim e c e r tifi cates. Passbook savings, nonetheless, rem ain th e m ost p o p u la r fo rm o f savings, m a k in g up a b o u t 50 p e rc e n t o f all s m a ll-d e n o m in a tio n in te re s t-b e a rin g acco un ts in th e D is tric t. M a n y con sum e rs, h o w e ve r, take advantage o f h ig h e r rates o ffe re d on c e rtific a te s o f d e p o s it, w ith s h o rt-te rm m a tu ritie s v a ry in g fro m 90 days to 1 year and lo n g e r-te rm ce rtific a te s m a tu rin g in 1 to 4 years o r m ore. The in te re st rates banks and t h r ift in s titu tio n s pay o n these savings c e rtifica te s are lim ite d by re g u la to ry ce ilin g s. As th e year progressed, th e banks' and o th e r d e p o s ito ry in s titu tio n s ' a b ility to a ttra c t co n su m e r t h r ift d e p o sits w e a ke n e d because rates o n m a rke t secu ritie s rose a b ove tho se th e y w e re a llo w e d to pa y u n d e r th e re g u la to ry ce ilin g s. T o a lle v ia te a pos sib le re d u c tio n o f these savings flo w s , re g u la to ry agencies increased th e m e m b e r ba nk c e ilin g rates, e ffe c tiv e July 1. By O c to b e r, passbook savings at D is tric t m e m b e r banks had increased $250 m illio n o v e r a year ago ra th e r tha n de crea sing as had been feared. O n e reason was th a t th e average rate o ffe re d by these banks had risen to 4.8 p e rce n t, co m p a re d w ith 4.3 p e rc e n t in 1972. Rates o n s h o rt-te rm ce rtific a te s m a tu rin g in less tha n o n e year also increased, fro m 5.0 p e rc e n t to 5.4 p e rc e n t o v e r th e same p e rio d . Even so, th e v o lu m e o f these s h o rt-te rm ce rtific a te s fe ll by $438 m illio n , w hereas ce rtific a te s m a tu rin g o v e r on e year o ffe rin g even h ig h e r rates increased a h e fty $832 m illio n . C o m p le x events in m o n e y m arkets, to g e th e r w ith re g u la to ry rate changes, thus resu lted in a sustained level o f s lig h tly h ig h e r in te re s t-b e a rin g co n s u m e r passbook savings and a s h iftin g o f c o n sum e r tim e fu n d s fro m s h o rte r-m a tu rity to lo n g e rm a tu rity c e rtific a te s y ie ld in g th e h ig h e st a va ila b le rates. This s h ift to lo n g e r m a tu ritie s was e sp e cia lly m a rke d a fte r m id -1 9 7 3 , w h e n banks, a lo n g w ith o th e r t h r ift in s titu tio n s , started m a k in g a ctive use o f th e n e w a u th o rity to o ffe r c e ilin g -fre e fo u r-y e a r (“ w ild c a rd " ) ce rtifica te s. By th e en d o f A u g u st, a sam p le o f large D is tric t banks had issued n e w fo u ryear c e rtific a te s to ta lin g $177 m illio n . This to ta l increased at a b o u t a 2 0 -p e rc e n t m o n th ly rate d u rin g FE D E R A L RESERVE B A N K O F A T LA N T A MATURITY DISTRIBUTION October 1973 $ Millions % of Total Savings Deposits Christmas Savings 5,957 228 50.4 1.9 Time Deposits under $100,000 Maturing in: less than 1 year 1 — 2 V2 years 2 V2 — 4 years Over 4 years 2,335 2,018 581 691 19.8 17.1 4.9 5.9 Total 11,810 Note: Figures cover all District member banks. 100.0 S h if t T o w a rd s Lo n g e r T e rm S a v in g s % o f T o ta l T im e & S a v in g s D e p o sits I___Under one year l / S A Over one year _ S a v in g s D e p o sits Oct., 1972 Oct., 1973 ‘ C o n s u m e r s h o ld 8 5 % of t h e s e t im e c e rtific a te s. N o te : F i g u r e s c o v e r all D is t r ic t m e m b e r b a n k s . S ep tem be r and O c to b e r, as savers a p p a re n tly s h ifte d fro m s h o rte r m a tu ritie s in to th e " w ild c a r d s ." A t th e en d o f O c to b e r, a b o u t 75 p e rc e n t o f all D is tric t m e m b e r banks o ffe re d these ce rtific a te s , and th e ir h o ld in g s to ta le d $680 m illio n . A b o u t h a lf th e to ta l was h e ld by sm a lle r banks w h o se to ta l d e p o s it size was less than $100 m illio n . T he m o st c o m m o n rate p a id was 7 ' U p e rce n t, a lth o u g h m any banks p a id as h igh as 73A p e rc e n t; and a fe w o ffe re d rates o v e r 8 pe rce n t. Large banks in th e $ 1 0 0 -m illio n and o v e r size d id n o t ap p e a r to c o m p e te so ag gressively fo r c o n su m e r c e rtifica te s, and th e ir rates averaged so m e w h a t lo w e r. So as n o t to im p a ir savings flo w s to t h r ift in s titu tio n s th a t p ro v id e m o rtg a g e c re d it, th e re g u la to ry agencies, as d ire c te d by Congress, set n e w c e il ings o f 7 1/4 p e rc e n t fo r banks and 7 ' t i p e rc e n t fo r t h r ift in s titu tio n s on ce rtific a te s m a tu rin g in fo u r years o r m ore , e ffe c tiv e N o v e m b e r 1. T he re a fte r, g ro w th in fo u r-y e a r c e rtific a te s at D is tric t m e m b e r banks s lo w e d to a b o u t $42 m illio n in N o v e m b e r and in D e ce m b e r, o r to a b o u t a 6 -p e rc e n t m o n th ly rate. January, h o w e ve r, p o sted a stro n g $154 m illio n upsurge as s h o rte r-te rm ce rtific a te s purchased p r io r to th e rate changes reached m a tu rity and consum ers s h ifte d th e ir savings to th e h ig h e r-ra te fo u r-y e a r ce rtifica te s. C o n su m e r savings v o lu m e in th e fo rm o f ce rtific a te s m a tu rin g o v e r o n e year thus rem ains c o n s id e ra b ly h ig h e r tha n in p re vio u s years. Charles D. Salley 37 S ix th D i s t r i c t S t a ti s ti c s Seasonally Adjusted (All data are Indexes, unless indicated otherwise.) L a te st M o n t h One M onth Ago Two M on th s Ago One Year Ago S IX T H D IS T R IC T U n e m p lo y m e n t R a te (P e rc e n t o f W o rk F o r c e ) .............. Avg. W e e k ly H rs. in M fg. (H rs.) . . . Jan. IN C O M E A N D S P E N D I N G M a n u f a c tu r in g P a y ro lls .................. Jan. F a rm C a s h R e c e i p t s ......................... Dec. C r o p s ........................................... Dec. L iv e s to c k .................................... Dec. In s ta lm e n t C re d it at B a n k s * / 1 (M il. $) Ne w L o a n s .................................... Jan. Rep aym ents ................................ Jan. 173 1 90 217 190 172 185 216 185 170 201 191 22 2 152 144 159 154 6 79 636 66 4 r 612r 75 2 6 28 6 55 565 One M onth Ago Tw o M on th s Ago O ne Year Ago N.A. 41.5 N.A. 4 1.0 N.A. 41.6 N.A. 41.3 242 195 231 2 35 19 4 230 237 192 2 28 196 177 192 180 160 179 182 179 2 17 154 145 142.5 121.4 146.6 183.4 94.9 143.3 122.4 147.4 185.3 9 4.8 144.0 123.2 148.0 187.6 96.6 136.3 116.8 140.1 170.5 95.6 N.A. 41.1 N.A. 40.8 N.A. 41.2 N.A. 41.0 2 95 237 282 2 90 228 288r 281 2 32 3 02 239 165 246 165 194 1 58 2 54 143 154 131.1 113.7 139.1 152.9 96.4 129.7 114.2 136.8 152.1 91.1 N.A. N.A. N.A. N.A. 89.6 124.6 111.7 132.7 143.7 92.5 N.A. 41.0 N.A. 4 0.9 N.A. 40.3 N.A. 38.9 271 181 25 1 180 2 53 1 74 209 168 147 222 137 148 118.6 108.1 120 .8 9 7.9 7 8.2 116.5 117.2 105 .8 104.9 118.7 118.6 92.6 9 0.3 8 1.9 71.9 115.5 107.1 117.3 92.6 78.2 N.A. 41.2 N.A. 41.0 F IN A N C E A N D B A N K IN G M e m b e r B a n k L o a n s ......................... Jan. M e m b e r B a n k D e p o s i t s .................. Jan. B a n k D e b i t s * * .................................Jan. F L O R ID A IN C O M E E M P L O Y M E N T A N D P R O D U C T IO N N o n fa rm E m p l o y m e n t .................. M a n u f a c t u r i n g ......................... N o n d u r a b le G o o d s .................. F o o d .................................... T e x t i l e s ............................. A p p a re l ............................. P a p e r ................................ P r in t in g a n d P u b lis h in g . . C h e m i c a l s ......................... D u ra b le G o o d s ...................... Lbr., W ood Prods., Furn . & Fix. Stone , C lay, a n d G la s s . . . P rim a ry M e t a l s .................. Fa b ric a te d M e t a l s .............. M a c h i n e r y ......................... T ra n sp o rta tio n E q u ip m e n t N o n m a n u f a c t u r i n g ...................... C o n s t r u c t i o n ...................... T r a n sp o rta tio n .................. T r a d e ................................ Fin., ins., a n d real est. . . . S e r v i c e s ............................. Fed e ral G o v e rn m e n t . . . . S ta te a n d Lo ca l G o v e rn m e n t F a rm E m p l o y m e n t ......................... U n e m p lo y m e n t R a te (P e rc e n t of W o rk Fo rce) . . . . In s u r e d U n e m p lo y m e n t (P e rc e n t of Cov. E m p . ) .............. Avg. W e e k ly H rs. in M fg. (H rs.) . . C o n s tru c t io n C o n t r a c t s * .............. R e s i d e n t i a l ................................ All o t h e r .................................... C otto n C o n s u m p t i o n * * .................. Pe trole u m P r o d u c t i o n * * .............. M a n u f a c tu r in g P ro d u c tio n . . . . N o n d u r a b le G o o d s ...................... Food ................................ T e x t i l e s ............................. Ap p a re l ............................. P a p e r ................................. P rin tin g a n d P u b lis h in g . . C h e m i c a l s ......................... D u ra b le G o o d s ......................... L u m b e r a n d W o o d .............. F u rn itu re a n d F ix t u re s . . . Stone , C la y, a n d G la s s . . . P r im a r y M e t a l s .................. F a b ric a te d M e t a l s .............. N o n e le ctrica l M a c h in e r y . . Ele ctrica l M a c h in e r y . . . T ra n sp o rta tio n E q u ip m e n t L a te st M o n t h . . . . . . . . . . . . . . . . . . . . . . . . . Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. Jan. • • • • Jan. Jan. Jan. Jan. Jan. ■ Dec. . Jan. . Oct. Oct. . Oct. . Oct. . Oct. . Oct. Oct. . Oct. . Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. Oct. 130.0 117.2 115.0 105.8 113.2 114.0 133.6 150.2 106.7 134.5 145.9 115.0 135.9 141.0 141.7 104.0 135.0 90.7 133.5 143.1 114.7 134.8 141.5 142.7 102.9 134.5 87.9 N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. 84.9 N.A. N.A. N.A. N.A. 1.9 41.1 207 1.8 1.6 205 78 108 307.5 244.8 188.6 298.1 289.4 224 .8 155.3 319.6 382.0 40.9 25 5 258 2 52 78 109 304.2 244.4 188.6 297.8 290.0 224 .9 156.4 315 .4 375.1 202.0 20 1.8 190.8 211.9 271.6 298.0 501.8 917.4 471.8 191.4 206 .9 257 .8 293 .4 498.5 920.0 456.7 41.6 325 32 4 325 80 105 304.7 244.8 189.1 297.8 290.1 225 .2 157.4 311.7 376.1 202.4 191.7 205 .9 254.7 287.6 496 .9 916.0 471.3 1.9 39.6 255 331 180 83 119 280.6 234.0 183.5 276.1 271.9 278.5 438 .9 739.5 439.5 2 66 2 54 257 '2 4 3 253 2 38 21 3 197 1 1 2 .2 126.7 108.8 119.8 119.0 125.3 112 .6 2 10 129.4 117.4 115.4 105.0 113.5 114.8 112.9 127.3 109.4 120.0 117.7 123.6 113.1 132.7 150.0 110 .2 125.5 115.0 112.5 105.1 112 .0 113.4 112 .0 123.2 106.1 116.8 117.5 12 0 .1 112.3 126.1 138 4 109 8 129 2 137.2 206 179 2 58 EM PLOYM ENT N o n fa rm E m p l o y m e n t ......................Jan. M a n u f a c t u r i n g ............................. Jan. N o n m a n u f a c t u r i n g ......................... Jan. C o n s t r u c t i o n ............................. Jan. F a rm E m p l o y m e n t ............................. Jan. U n e m p lo y m e n t Rate (P e rce n t of W o rk F o r c e ) .............. Avg. W e e k ly H rs. in M fg. (H rs.) . . . Jan. F IN A N C E A N D B A N K IN G M e m b e r B a n k L o a n s ......................... Jan. M e m b e r B a n k D e p o s i t s ......................Jan. B a n k D e b i t s * * .................................Jan. 2 10 242 1 1 1 .2 130.6 134.7 137.0 101.4 129.7 91.2 2 2 1.0 157.5 302.8 336.8 197.8 187.7 193.7 2 2 1.8 F IN A N C E A N D B A N K IN G Loans* A ll M e m b e r B a n k s ......................... Jan. L a rg e B a n k s ................................ Jan. D e p o s its * A ll M e m b e r B a n k s ......................... Jan. L a rg e B a n k s .................................Jan. B a n k D e b it s * / * * ............................. Jan. .................. Jan. M a n u f a c tu rin g P a y ro lls Fa rm C a s h R e c e i p t s ......................... Dec. 200 200 177 250r 175 255 185 161 21 9 173 225 175 196 15 9 155 G EO R G IA IN C O M E M a n u f a c tu rin g P a y ro lls .................. Jan. F a rm C a s h R e c e i p t s ......................... Dec. EMPLOYM ENT N o n fa rm E m p l o y m e n t ......................Jan. M a n u f a c t u r i n g ............................. Jan. N o n m a n u f a c t u rin g ......................Jan. C o n s t r u c t i o n ............................. Jan. Fa rm E m p lo y m e n t ......................... Jan. U n e m p lo y m e n t R a te (P e rc e n t of W o rk F o r c e ) .............. Avg. W e e k ly H rs. in M fg. (H rs.) . . . Jan. F IN A N C E A N D B A N K IN G M e m b e r B a n k L o a n s ......................... Jan. M e m b e r B a n k D e p o s i t s .................. Jan. B a n k D e b i t s * * .................................Jan. L O U IS IA N A IN C O M E .................. Jan. M a n u f a c t u r in g P a y ro lls F a rm C a s h R e c e i p t s ......................... Dec. 152 1 85 1 49 204 EM PLO Y M EN T N o n fa rm E m p l o y m e n t ......................Jan. M a n u f a c t u r i n g ............................. Jan. N o n m a n u f a c t u r i n g ......................... Jan. C o n s t r u c t i o n ......................... Jan. F a rm E m p l o y m e n t ............................. Jan. U n e m p lo y m e n t R a te (P e rc e n t of W o rk Fo rce) . . . Avg. W e e k ly H rs. in M fg. (H rs.) . . . Jan. N.A. 40.7 N.A. 39.7 2 37 2 31 184 176 197 1 9 6 r 18 8 227 175 18 9 169 202 191 246 192 17 4 189 171 1 68 187 130.5 131.7 130.0 146.6 83.3 130.4 132.0 129.6 136.9 79.5 129.3 131.4 128.3 136.5 79.9 125.1 128.9 123.3 136.2 85.7 F IN A N C E A N D B A N K IN G M e m b e r B a n k L o a n s * ......................Jan. M e m b e r B a n k D e p o s i t s * .................. Jan. B a n k D e b i t s * / * * .................................Jan. ALABAM A M IS S IS S IP P I IN C O M E M a n u f a c tu rin g P a y r o l l s ......................Jan. F a rm C a s h R e c e i p t s ......................... Dec. EM PLOYM ENT N o n fa rm E m p l o y m e n t ......................Jan. M a n u f a c t u r i n g ............................. Jan. N o n m a n u f a c t u rin g ......................Jan. C o n s t r u c t i o n .............................Jan. F a rm E m p l o y m e n t ............................. Jan. 38 176 197 121.2 120.4 121.0 117.8 117.7 117.7 122.8 121.6 122.5 131.7 86.7 132.3 82.0 134.9 76.4 IN C O M E M a n u f a c tu rin g P a y r o l l s .................. Jan. Fa rm C a s h R e c e i p t s ......................... Dec. EM PLOYM ENT 116.7 114.3 117.8 131.0 85.1 N o n fa rm E m p l o y m e n t ......................Jan. M a n u f a c tu r in g ............................. Jan. N o n m a n u f a c t u r i n g ......................... Jan. C o n s t r u c t i o n ............................. Jan. Fa rm E m p l o y m e n t ............................. Jan. MARCH 1974, M O N T H L Y R E V IE W La te st U n e m p lo y m e n t Rate (P e rc e n t of W o rk F o r c e ) .............. Avg. W e e k ly H rs. in M fg. (H rs ) . . . Jan. M on th O neTw o M on th M o n th s Ago Ago One Year Ago La te st M o n t h One M onth Ago Tw o M o n th s Ago O ne Year Ago EM PLO YM ENT N.A. 40.2 N.A. 40.4 N.A. 40.5 N.A. 38.1 26 5 2 13 238 261 209 2 13 2 50 209 221 212 180 194 F IN A N C E A N D B A N K IN G M e m b e r B a n k L o a n s * ......................Jan. M e m b e r B a n k D e p o s i t s * .................. Jan. B a n k D e b i t s * / * * ................................ Jan. U n e m p lo y m e n t Rate (P e rc e n t o f W o rk Fo rce) . . Avg. W e e kly H rs. in M fg. (H rs.) Jan. Jan. Jan. Jan. Jan. 126.0 115.4 131.9 139.0 93.1 125.2 116.3 130.2 128.2 90.1 125.2 116.4 130.1 124.3 90.1 123.8 115.3 128.5 128.8 96.7 Jan. N.A. 41.2 N.A. 41.1 N.A. 40.8 N.A. 39.5 Jan. Jan Jan. 2 50 198 232 2 45 192 2 23 2 39 189 2 15 208 179 188 TEN NESSEE F IN A N C E A N D B A N K IN G IN C O M E M a n u f a c tu r in g P a y r o l l s ......................Jan. F a rm C a s h R e c e i p t s ......................... Dec. 179 1 49 178 202 177 180 * F o r S ix t h D ist ric t area only; o th e r to ta ls fo r en tire s ix sta te s 156 110 * * D a il y ave ra g e b a s is fP r e lim in a r y d ata r-R e v ise d N.A. N o t a v a ila b le Note: Indexes for bank debits, construction contracts, cotton consumption, employment, farm cash receipts, loans, petroleum production, and payrolls: 1967 = 100. All other indexes: 1957-59 = 100. S o u rc e s : M a n u f a c t u r in g p ro d u ctio n e stim a te d b y t h is B a n k ; non farm , m fg. a n d n o n m fg . emp., m fg. p a y ro lls a n d hou rs, a n d unem p., U.S. Dept, of L a b o r a n d c o o p e ra tin g state a g e n c ie s; cotton c o n su m p t io n , U.S. B u re a u of C e n s u s; c o n stru c tio n c on trac ts, F. W. D o d g e Div., M c G ra w -H ill In fo rm a tio n S y s t e m s Co.; petrol, prod., U .S. B u re a u of M in e s; fa rm c a sh re c e ip ts a n d fa rm emp., U.S.D.A. O th er in d e x e s b a se d on data c ollec ted b y t h is B a n k . All in d e x e s c a lc u la te d by t h is B an k . 'D a t a b e n c h m a rk e d to Ju n e 1971 Rep ort of C o n d itio n . E m p lo y m e n t data fo r A la b a m a , G eorgia, L o u isia n a , a n d M i s s is s ip p i have been ad ju ste d to new b e n c h m arks. D e b i ts t o D e m a n d D e p o s i t A c c o u n t s Insured Commercial Banks in the Sixth District (In Thousands of Dollars) P e rc e n t C h a n g e Perc e n t C h a n g e Jan. 1 9 7 4 from Jan. 1 9 7 4 from Jan. 197 4 Dec. 1973 Jan. 1973 Dec. 1973 Jan. 197 3 D otha n Se lm a S T A N D A R D M E T R O P O L IT A N S T A T IS T I C A L A R E A S * * B ir m in g h a m . . . . G a d sd e n . . . H u n t sv ille . . . . .............. M o b ile M o n t g o m e r y ■. . . T u s c a lo o sa . . 4,227,100 101,757 358 ,900 1,163,737 68 6 ,336 2 6 3 ,379 B a r t o w - L a k e la n d W in te r H aven 897,486 D ay to n a B e a c h . . 441 ,165 Ft. L a u d e rd a le — H o lly w o o d . . . . 2,065,826 Ft. M y e r s . . . . 461,351 G a in e s v ille 290,011 J a c k s o n v ille . . . . 4,705,955 M e lb o u r n e — T itu sv ille -C o c o a 48 3 ,5 3 9 .............. M ia m i 7,858,077 1,724,707 O r l a n d o .............. P e n s a c o la . . . . 458 ,420 S a r a so ta . . . . 642,957 T a lla h a s se e . . . 858,159 T a m p a - S t . Pete. . . 4,650,102 W. P a lm B e a c h 1,460,100 A l b a n y .............. A t l a n t a .............. A u g u st a . . . C o lu m b u s . . . . M acon .............. Savannah . . . . A le x a n d ria . B ato n R o u g e L afay ette . . L a k e C h a r le s N e w O rle a n s . . . . . . . . . . . . B ilo x i- G u lf p o r t Jackson . . . . C h a tta n o o g a . . K n o x v ille . . . . N a sh v ille . . . . . 4,083,196 104,886 339,223 1,148,377 675,649 223 ,624 3,463,148 98,715 306,761 1,016,862 608 ,096 186,934 + + + + + 4 3 6 1 2 18 +22 + 3 + 17 + 14 + 13 +41 828,757 383 ,893 777,425 388 ,195 + 8 + 15 + 15 + 14 1,983,822 348 ,645 291 ,469 4,255,061 2,046,210 355 ,433 226,061 3,708,643 + 4 +32 - 1 + 11 + 1 +30 +28 +27 567 ,030 7,369,847 1,636,562 428 ,969 5 74,906 672 ,009 4,15 4,749 1,305,171 4 5 9 ,112 6,784,200 1,456,569 423 ,123 503,977 8 4 0 ,952 4,04 9,988 1,357,384 -1 5 + 7 + 5 + 7 + 12 +28 + 12 + 12 + + + + + + + + 217 ,175 18,353,747 6 2 3 ,088 486,331 685,477 601 ,496 192 ,619r 16,406,077 568,608 4 2 7 ,906 578,021 5 73,699 199,880 13,589,470 473,547 4 1 9 ,374 4 9 9 ,470 559 ,786 + + + + + + + 9 + 35 +32 + 16 +37 + 7 296,143 1,435,627 322,233 2 86,483 4,972,677 279 ,766 1,274,002 284 ,996 229 ,028 4,519,503 238 ,496 1,197,197 2 6 3 ,489 235 ,152 5,743,787 13 12 10 14 19 5 + 6 + 13 + 13 +25 + 10 5 16 18 8 28 2 15 8 + 24 +20 + 22 + 22 -1 3 252 ,040 1,647,863 218 ,667 1,462,802 217,675 1,268,713 + 15 + 13 + 16 +30 1,410,480 1,472,202 3 ,898,405 1,474,922 1,258,942 3,580,488 1,157,708 890 ,595 3,266,594 - 4 + 17 + 9 + 22 +65 + 19 O THER C E N T E R S A n n i^ o n . . . . 1 1 1 ,0 2 2 106,379 106,977 + 4 + 4 . . . . . . . . B rad e n to n . . . M o n ro e C o u n ty O c a l a .............. St. A u g u st in e St. P e te rsb u rg . Tam pa . . . . Athens . . . . B ru n s w ic k . . Dalton . . . . Elb erton . . . G a in e s v ille . . G riffin . . . . L a G ra n g e . . . New nan . . . R o m e .............. V a ld o s ta . . A b b e v ille . . B u n k ie . . . . H am m ond . . N e w Ib e ria . P la q u e m in e . T h ib o d a u x . . H a ttie s b u rg . Laurel . . . . M e rid ia n . . N a tc h e z . . P a s c a g o u la M o s s P o in t V ic k s b u r g . . Y a zo o C ity . . . . . . . . . . . Dec. 197 3 Jan. 1973 149 ,192 84,362 + 11 + 6 +35 +33 2 1 0 ,354 84,701 210 ,340 45,6 07r 1,014,268 1,928,994 2 0 1 ,274 79,1 1 4 185,380 35,0 99 1,071,370 1,807,213 + 5 +49 + 10 +26 + 12 + 12 + 10 +59 +24 +63 + 6 158,273 110,974 197,319 24,2 09 165,094 86,7 27 4 5,5 75 60,2 20 148,757 9 8,6 72 161,440 103,948 201 ,016r 24,1 37 141,377 77,6 93 41,3 54 61,785 147,993 98,241 161,541 91,909 174,997 21,3 15 134 ,109 69,831 36,8 69 57,3 80 142,926 104,046 20,4 64 14,229 91,207 76,8 94 30,2 57 4 8,9 84 18,206r 14,8 49 85,7 48 66,275 2 4 ,6 9 6 r 43,085 Jan. 197 4 Dec. 1973 202 ,132 112,233 181,911r 105,915 221 ,799 125,855 2 30,621 57,296 1,133,084 2,163,731 Jan. 1973 + + + + + + + 2 7 2 0 +20 - 2 +21 1 0 + 13 + 14 +23 +24 +24 + 5 + 4 - 5 17,713 12,474 70,9 78 6 8,1 93 27,7 72 4 3,2 07 + 12 - 4 + 6 + 16 +23 + 14 + 16 + 14 +29 + 13 + 9 +13 17 12 10 3 133,211 83,351 128,857 55,530 125,687 76,483 114,209 60,143 115,590 70,395 120,953 54,735 + 6 + 9 + 13 - 8 + 15 + 18 + 7 + 1 149,665 . . 1 0 1 ,0 1 1 146,130 86,413 47,8 04 160,787 78,207 44,7 56 + 2 + 17 58,249 +22 - 7 +29 +30 B risto l . . . . J o h n so n C ity K in g sp o rt . . . 113,365 180,144 2 9 3 ,278 119,784 163,627 264 ,103 1 36,797 1 60,079 241 ,689 - 5 + 10 + 11 +21 D istrict Total . . A la b a m a . . F lorid a . . . . G eorgia . . . . L o u is ia n a ' . M is s is s ip p i' . T e n n e sse e ' . . . . . -1 7 + 13 . 8 6 ,5 88,920 78,2 66,049 r 73,395,410 + 11 +18 . 9,682,466 . 30,0 05,110 . 24,8 13,234 . 8,74 2,969 . 3,44 3,762 . 9,90 1,379 9,165,090 8,170,263 27,3 90,003 r 25,920,693 21,3 80,318 19,527,210 7,93 1,916r 8,954,567 3,083,890 2,840,518 9,314,832 7,982,159 + + + + + + 6 10 + 19 + 16 +27 - 2 16 10 12 6 +21 +24 1 District portion only r-Revised F ig u r e s fo r so m e a re a s d iffe r s lig h t ly fro m p re lim in a ry fig u re s p u b lish e d in " B a n k D e b its a n d D e p o sit T u r n o v e r " b y B o a rd of G o v e rn o rs of the Fed e ral R e se rv e Sy ste m . •’ C o n f o r m s to S M S A d e fin it io n s a s of D e c e m b e r 31, 1972. F E D ER A L R ESERVE B A N K O F A T LA N T A 39 D i s t r i c t B u s i n e s s C o n d i t i o n s The S outheast's e c o n o m y c o n tin u e s to e x h ib it signs o f unevenness. Loan an d d e p o s it g ro w th at c o m m e rc ia l banks resu m ed in January, b u t g ro w th in c o n su m e r in s ta lm e n t c re d it an d v a lu e o f c o n s tru c tio n co n tra cts w e a ke n e d f o r th e seco nd s tra ig h t m o n th . A g ric u ltu ra l p rice s m o v e d h ig h e r in January, b u t in crea sed p ro d u c tio n b ro u g h t F ebruary de clin e s. Energy p ro b le m s c o n tin u e d to cause d is to rtio n s in som e la b o r m arkets. H o w e v e r, to ta l n o n fa rm jo b s a d van ced w h ile n e w u n e m p lo y m e n t in su ra n ce cla im s fe ll fro m th e ir u n u s u a lly h ig h January le ve l. G ro w th o f c o n s u m e r in s ta lm e n t c re d it at c o m p a rtic u la rly large. R e fle c tin g risin g prices fo r fa rm m e rc ia l banks s lo w e d again in January. C o n tin u e d p ro d u c ts weakness in a u to le n d in g and a s lo w d o w n in n o n 1973 fa rm cash rece ip ts w e re n e a rly o n e -th ird ab ove th ro u g h o u t m o st o f th e year, ca le n d a r a u to m o tiv e co n s u m e r loans c o m b in e d to p ro d u c e th e 1972 level. In F ebruary, prices o f m o st liv e s to c k m o re item s d e c lin e d , w ith b ro ile r and c a lf prices d ro p p in g tha n tw o years. U n it a u to sales fe ll su b s ta n tia lly w e ll b e lo w yea r-ag o levels. F ebruary b ro ile r p la c e w h e n c o m p a re d to th e yea r-ag o m o n th . H o w e ve r, m ents m o st re ta il sales sh o w e d sm all real gains. th e slo w e st g ro w th in co n s u m e r c re d it in and egg p ro d u c tio n increased fro m b o th Loan g ro w th a t m e m b e r banks resu m ed in Janu m o n th -a g o and yea r-ag o le vels; b u t fo r th e firs t tim e in several years, January m ilk p ro d u c tio n ary, fo llo w in g a d ip in D e ce m b e r. D e po sits also d ro p p e d fro m th e y e a r-e a rlie r le ve l, re fle c tin g u n re co ve re d stro n g ly , e sp e cia lly tim e de po sits at c o u n fa v o ra b le m ilk -fe e d p ric e ratios d u rin g th e past year. try banks. B o rro w in g s fro m th e Federal Reserve and T here was m o re e v id e n c e o f e n e rg y p ro b le m s ne t purchases o f Federal fu n d s c o n tin u e d to d e c lin e , d is to rtin g la b o r m a rke ts in January. A lth o u g h n o n - a lth o u g h som e large banks m a in ta in e d th e ir high levels o f b o rro w e d reserves. T o ta l in v e s tm e n t h o ld ings rose as purchases o f state and lo cal o b lig a tio n s o ffs e t liq u id a tio n s o f U. S. securities. in January. A ga in th e F lo rid a re p o rte d a d e c lin e . F lo rid a 's jo b losses w e re heaviest in th e service and tra d e m a n u fa c tu rin g The v a lu e o f c o n s tru c tio n co n tra cts c o n tin u e d to s lu m p farm jo b gains w e re re co rd e d in o th e r D is tric t states, p rim a ry p a rtic u la rly in d u strie s, b u t fo o d processing, also fe ll o ff. O n a D is tric t basis, n o n m a n u fa c tu rin g of jo b s increased s lig h tly , b u o y e d b y stre n g th in c o n weakness was th e h o u sin g sector, w h e re a c tiv ity s tru c tio n e m p lo y m e n t. M a n u fa c tu rin g e m p lo y m e n t c o n tin u e s to d im in is h d e sp ite re ce n t increases in d ro p p e d in all D is tric t states e xce p t Louisiana. The c re d it a v a ila b ility and m ild in m o rtg a g e sharpest jo b d e c lin e was in tra n s p o rta tio n e q u ip rates. N o n re s id e n tia l co n tra cts d ro p p e d sh a rp ly fo r m e n t m a n u fa c tu rin g . T o ta l fa c to ry ho urs, h o w e v e r, d e clin e s source jo b s , th e second m o n th in a row . h e ld up w e ll. T he in su re d u n e m p lo y m e n t rate rose Prices re ce ive d b y farm ers m o v e d u p s te e p ly in s lig h tly in January. N e w u n e m p lo y m e n t in sura nce January. N e a rly all c o m m o d itie s shared in th e rise, claim s, th o u g h s till at a h igh level in e a rly February, b u t p rice d ro p p e d fro m even h ig h e r m id -Ja n u a ry levels. NOTE: increases fo r c o tto n and b ro ile rs w e re D a t a o n w h ic h s t a t e m e n t s a r e b a s e d 4 0 for FRASER Digitized h a v e b e e n a d j u s t e d w h e n e v e r p o s s i b l e t o e li m in a t e s e a s o n a l in f l u e n c e s . M A R C H 1974, M O N T H L Y R E V IE W
@FedFRASER