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M o n th ly F E D E R A L R E E R V E B A N K O F A T L A S u m m a ry B u s in e s s o f C o n d itio n s N T A Num ber 3 A tlanta, Georgia, M arch 31, 1942 Volume XXV II D is tric t S R e v ie w ^ O p e ra tin g R a tio s M e m b e r B a n k s o f in 1941 In February cotton textile activity in the Sixth Federal Reserve D istrict advanced to a new high level and building perm its issued at reporting cities increased somewhat. M er chandise distribution through both retail and wholesale channels declined, in com parison with the more favorable reports fo r January, but continued well above the corres ponding m onth of last year, and departm ent store sales were at a new high level for February. Construction contracts awarded in the D istrict declined further in February and were less than they were a year ago, and pig iron production was at a rate 3 per cent below the record level reported for January and February last year. ^ D epartm ent store sales in the Sixth D istrict declined 1 per cent, on a daily average basis, in February, but were 11 per cent greater than in February last year and were at a level higher than they had ever before been in February. The sm all decline from January to February followed a decrease in January that was 13 per cent sm aller than the drop that usually follows the December holiday business, and the seasonally adjusted index rose, as a consequence, by 13 per cent in January. The further sm all decrease in February was contrary to the usual seasonal movement, and the adjusted index declined in February by 11 per cent. These percentage com parisons and the index num bers are based upon actual dollar sales figures and make no allowance for changes in the level of prices. W holesale prices, as meas ured by the United States Bureau of Labor Statistics’ weekly price index, averaged 1 per cent higher in February than in January, and were 19.6 per cent above the average for Feb ruary 1941. The indexes for the country as a whole compiled by the Board of Governors of the Federal Reserve System indicate a decline of 8 per cent from January to February, and an increase of 21 per cent over February 1941. Among the reporting cities in the District, Birmingham had an increase in departm ent store sales of 41 per cent over February 1941, Chattanooga a gain of 24 per cent, Jackson 23 per cent, Knoxville and New Orleans 17 per cent, Tampa 16 per cent, Macon and Montgomery 15 per cent, Jacksonville and N ashville 10 per cent, and Baton Rouge 7 per cent. Weekly sales figures fo r the first half of M arch were at a rate about 17 per cent above that of February and 14 per cent greater than in M arch last year, for the District as a whole. D epartm ent store inventories at the end of February aver aged 16 per cent larger than a month earlier and were 34 per cent greater than for February last year. The February in crease in inventories was about 8 per cent larger than usually occurs at that time and the adjusted index of stocks rose by that amount. ^ W holesale distribution of merchandise in the Sixth Dis- F or the past five consecutive years, the Federal Reserve Bank of A tlanta has computed the average operating ratios of its member banks. For each of the years 1937, 1938, and 1939, the ratios were published in pam phlet form and distributed to the individual member banks. Last year, however, the ratios were published in the Review with somewhat extended comment. Publication in the Review again has been adopted as the means of distributing the 1941 operating ratio averages with the exception that comment has been confined to report ing upon the classification and derivation of the data. On the inner pages of this issue, therefore, will be found a statistical summary of the average operating ratios as calculated for 315 member banks of the Sixth Federal Reserve District. y As was done in the operating ratio calculations of previous years, the member banks of the Sixth D istrict for the 1941 ratios were classified into seven groups, ranked according to the am ount of average deposits. One group, for example, consists of all member banks in the D istrict with less than $250,000 average deposits. A second group consists of the banks having average deposits of $250,000 up to $500,000. Succeeding groups, on an ascending scale, are likewise set forth with the seventh group consisting of all banks having average deposits in excess of $10,000,000. It is recognized that banks (for the purpose of showing operating ratios) might well be classified on some other basis than that of average deposits. The fact that a bank is located in one state instead of another may have some bearing on its ratios. Location in a farm ing community instead if in a m anufacturing community will likewise affect the operating ratios of a particular bank. By and large, however, both expense and income ratios are probably as responsive to changes in the amount of deposits as to any other factor. ►In recognition of influences other than the size of deposits in determining operating ratios, it is proper to emphasize the caution that no particular average ratio should be accepted as a standard or ideal. For this reason, it was regarded as helpful to show beside each ratio in each of the seven groups, the spread between the low and the high ratio reported for the m iddle 50 per cent of the banks. This spread is what is technically known as the interquartile range. For a particular ratio in a particular size group, this range is computed by arranging in ascending order the ratios of the banks in the group and then elim inating the lower one-fourth and the upper one-fourth. The range of dispersion or departure from the group aver ages probably has some significance in appraising the oper ating experience of a particular bank. In any event, by com paring its ratios with the interquartile ranges a bank can determine whether its ratio is within the range occupied by Continued on page 20 Continued on page 15 14 M o n t h ly R e v ie w o f th e F ederal R eserve B a n k o f A tla n ta fo r M arch 1942 Changes in Regulation W, Consumer Credit Effective M arch 23, 1942, the Board of Governors of the Federal Reserve System amended Regulation W, the con sumer credit control measure, in several particulars. Regu lation W was first issued August 21, 1941, under authority of section 5 (b ) of the Act of October 6, 1917, as amended, and Executive O rder No. 8843, dated August 9, 1941. The first amendment became effective Septem ber 20, 1941, and the second amendment became effective December 1, 1941. ►1. A num ber of new articles was added to the list con tained in the original Supplem ent to Regulation W. Bicycles, lawn mowers, silverware, and cameras were included in the list subject to maximum credit values of 66 2 /3 per cent of basis price. Clocks and watches and floor coverings were also included, at maximum credit values of 80 per cent of basis price. A maximum m aturity of 15 months was placed on all instalm ent contracts involving these articles. Registration Statements should be filed by all persons not already registered who make instalm ent sales of any of the additional articles. In the Sixth District, registration is accom plished by filing one copy of Registration Statement Form F.R. 563-a with the Federal Reserve Bank of A tlanta or its branches at New Orleans, Birmingham, Jacksonville, and Nashville. These institutions will furnish the necessary forms upon request. Since January 1, 1942, cash instalm ent lenders have been required to have the Statem ent of Borrower, Form F.R. 564, executed by prospective borrowers. W ith the addition of more articles subject to the Regulation, the Statem ent of Borrower as originally prescribed by the Board of Governors will be incomplete following the effective date of the amendment. W hile it is not necessary that Registrants discontinue the use of the form s that they already have on hand, it is suggested by the Board of Governors that the Registrants add the new items to the list by means of a rubber stamp, sticker, or other appropriate means, until the original supply of forms has been exhausted. ►2. The maximum m aturity in months was reduced from 18 to 15 months for all credits subject to the Regulation except credits fo r building modernization, plum bing, fu r naces, water heaters, water pumps, and pianos. The credit term for the items excepted remains at the original 18 months. It is to be understood that all instalm ent loan credits, as distinguished from instalm ent sale credits, are limited to a maximum m aturity of 15 months instead of the previous 18 months. Instalm ent loan credits refer to credits extended by a cash lender to a borrow er. The maximum m aturity of 15 months applies to all instalm ent loans of $1,500 or less (or more than $1,500 if the proceeds are to be used to pur chase listed articles) not otherwise excepted under Section 6 of the Regulation. To the previous exceptions as given in Section 6, the Amendment adds three additional classes of instalm ent lo an s: (a) an extension of credit made to finance the purchase of aircraft where a preference rating of A-10 or higher has been granted; (b) an extension of instalm ent loan credit made by the D isaster Loan C orporation; and (c) an extension of credit made by the Land Bank Commissioner on behalf of the Federal Farm M ortgage Corporation that is found neces sary for the production of essential agricultural commodities. ►3. The maximum credit value of used automobiles, instead of being 66 2 /3 per cent of the purchase price as hitherto, was based upon 66 2 /3 per cent of the lower of either (a) the bona fide cash purchase price or (b) the average retail value as given in approved autom obile appraisal guides. The effec tive date of the option thus offered was given as A pril 1, 1942. The option, however, does not apply to cars of 1934 and older models for whieh the maximum credit value will still be 66 2 /3 per cent of the bona fide cash purchase price, without reference to the appraisal guide values. The appraisal guides designated for use in the Sixth Fed eral Reserve D istrict are five in num ber: (1) The Official Blue Book New and Used Car Guide, published by N ational Used Car M arket Report, Inc., either A or B edition; (2) The Blue Book N ational Used Car M arket Report, Ex ecutive Edition, published by the N ational Used Car M arket Report, Inc., the “ Retail sales values” fo r Zone No. 2 for the states of Alabam a, Georgia, Louisiana, M ississippi, and Ten nessee; and “ Retail sales values” fo r Zone No. 4 for the state of F lorida; (3) The Red Book N ational Used Car M arket Report, pub lished by the N ational Used Car M arket Report, Inc.; (4) M arket Record, published by the M arket Record, Inc., District 5 Edition; and (5) N.A.D.A. Official Used Car Guide, published by the N ational Automobile Dealers Association, D istrict EF Edition. An autom obile dealer in the Sixth Federal Reserve D istrict is not confined to the use of any p articu lar autom obile a p praisal guide but may use quotations from any one of the foregoing publications. Furtherm ore, the appraisal guide val ues apply only to the car being sold by the dealer and not the car being traded in by the purchaser. Suppose a used car has an “appraisal guide value” of $600. The dealer may m ark this car for sale at any price he chooses and he may assign in good faith any value on the trade-in, but he may not finance this car fo r more than two-thirds of $600, or more than two thirds of the selling price, if the selling price is less than $600. For example, if he sells the $600 car for $1,000 he may finance only $400. The “appraisal guide value” of the trade-in car does not enter into the transaction except that it might be used to impeach the dealer’s good faith in assigning a value to the trade-in. ►4. Motorcycles, including m otor bicycles, were shifted from Group B to G roup A. This change means that a motorcycle may now be accepted as a trade-in on another motorcycle, with the trade-in value accepted as a p art or all of the required down paym ent as has hitherto been perm itted only in the case of automobiles. ►5. A slight liberalization was provided with respect to the rescheduling of delinquent payments and the consolidation of outstanding instalm ent obligations. A footnote was added to Section 8 (a ) of the Regulation, providing that past-due payments (not arising out of any plan to evade the Regula tion) may be divided equally among and added to the rem ain ing payments. P rio r to this change, a delinquent instalm ent contract could not be revised without a Statement of Necessity if the revision would involve larger payments than those originally scheduled, even though the contract would pay out M o n t h ly R e v ie w o f the Federal Reserve B a n k o f A tlanta fo r M arch 1942 within the original maximum maturity. By means of the foot note, permission is now given to increase the monthly pay ments following a period of delinquency, if the revised schedule of payments will pay out the contract within the original maturity. For example: suppose a customer has con tracted to pay $120 at $10 per month. He pays for the first three months and then becomes delinquent for the next three payments. The contract may be rescheduled to provide for the division of the delinquent $30 equally among the remain ing six scheduled payments, making each subsequent payment $15 per month instead of the original $10 per month. Option 1 in Section 8(b) was amended to provide that in a consolidated obligation, payments that have fallen due within different days within a month might be combined so that the first payment on the new consolidated obligation might be made within one month after the consolidation. For example: suppose that a Registrant is asked to consolidate three outstanding obligations repayable $10 each on the 10th, 15th, and 20th of the current month respectively, with an additional advance of $70, repayable $5 per month. In con solidating these obligations, the change in Option 1 now permits the first payment of $35 to be made within one month from the date of consolidation. ►Only the more salient changes in Regulation W as provided for in Amendment No. 3 have been discussed in the foregoing. Specific questions concerning the amendment, or requests for copies of the amendment, should be addressed to the Federal Reserve Banks or their branches. SUMMARY TA B LE Operating Ratios of A ll Member Banks la tb* Sixth Federal B m m District. 1937-1941. 1937 1938 1939 1940 1941 Number oi banks.................. ..........................320 318 313 314 315 R A T IO S : TO TO T A L EARNIN GS Interest and discount on loans.................. 55.4 59.1 60.3 62.3 62.7 Interest and dividends on securities........ 27.5 24.7 23.6 21.6 20.5 ** 4.8 4.9 5.1 5.4 Service charges............................................. All other eaiS in g s......................................... 17.1 11.4 11.2 11.0 11.4 100.0 100.0 100.0 100.0 Total earnings..............................................100.0 Salaries and w ag es....................................... 28.6 29.1 29.6 30.1 30.4 Interest on time and savings dep osits... 15.3 15.2 14.7 14.4 13.6 A ll other expenses......................................... 25.8 25.7 25.9 27.1 28.1 Total expenses........................................... 69.7 70.0 70.2 71.6 72.1 Net current earnings................................. 30.3 30.0 29.8 28.4 27.9 Net charge-offs, etc....................................... 3.6 4.6 2.9 3.7 3.2 Net profits..................................................... 26.7 25.4 26.9 24.7 24.7 TO TO TA L C A PITA L A CCO U N TS Net current earnings................................... 9.4 9.0 9.0 8.7 8.9 Net charge-offs, etc....................................... 1.4 1.4 1.0 1.3 .9 Net profits..................................................... 8.0 7.6 8.0 7.4 8.0 C ash dividends declared............................ * 3.3 3.4 3.4 3.5 Real estate assets........................................... * * 27.1 26.1 24.2 T O TO T A L ASSETS Total earnings................................................. 4.1 4.1 3.9 3.8 3.6 Total expenses............................................... 2.9 2.8 2.7 2.7 2.6 Net current earnings............................... 1.2 1.3 1.2 1.1 1.0 Net charge-offs, etc............................................... 1 .3 * .2 .1 1.0 * .9 .9 Net profits..................................................... 1.1 Loans t T............................................................. * * 37.2 36.5 35.5 Securities......................................................... * * 25.0 23.0 22.0 Real estate assets........................................... * * 3.6 3.2 2.7 C ash assets..................................................... * * 33.9 37.0 39.5 All other assets............................................... * * .3 .3 .3 Total assets................................................. * * 100.0 100.0 100.0 T O TO T A L DEPO SITS Total capital accounts................................. * * 17.1 16.1 14.7 Time deposits................................................. * * 35.2 34.6 32.6 T O TIM E D EP O SIT S Interest on time and savings d ep o sits... * * 1.8 1.7 1.6 T O LOAMS Interest and discount on loan s.................. 6.5 6.5 6.5 6.6 6.5 Net losses on loan s............................................... 4 .4 .4 .4 .2 Net return on loans.................................... 6.1 6.1 6.1 6.2 6.3 T O S E C U R ITIE S Interest and dividends on securities........ 3.7 3.6 3.5 3.3 3.2 Profits on securities sold..................................... 7 .8 1.1 .9 .8 Net l o w on securities................................ .2 .2 .2 .2 .0 Net return on securities............................ 4 i 4.2 4.4 4.0 4.0 *Notpofafahed Digitized “forIncluded FRASER ia " a ll other earnings" 15 O p e r a t i n g R a t i o s o f M e m b e r B a n k s in 1941 Continued from,page 13 50 per cent of the other banking institutions for which ratios were calculated in this study. The condition statements of member banks were drawn upon for the basic data in computing the ratios. In past years the ratios were computed on the basis of condition reports submitted for call dates entirely within a calendar year. For the 1941 operating ratios, however, the call reports of De cember 31, 1940, and the succeeding reports of April 4, June 30, and September 24, of 1941, were used. This change in procedure was adopted because it was believed that the new selection of call dates was somewhat more representative of the average condition of banks during the 1941 calendar year of earnings. Items for earnings and expenses were taken for the entire calendar year of 1941. In the previous ratio studies, real estate taxes have been shown as a separate item. For the year 1941, however, the only tax item shown is “taxes other than real estate.” Taxeson real estate were grouped with the item “all other ex penses.” Thi% change in procedure was adopted in order to place less emphasis upon the real estate tax item. Less em phasis upon this item was regarded as desirable in view of the variations to be found in state real estate taxation pro cedures and in view of the difference existing in the character and value of bank real estate holdings. ►In computing the ratio of “loans” to “personal and retaiL instalment paper,” the amounts of instalment receivables only of June 30, 1941, were used. The receivables for this date were regarded as more satisfactory from the standpoints of accuracy and consistency than those of December 30, 1940. Since the holdings of receivables were confined to one date, the figures for total loans were likewise confined to the same date in calculating the ratio. Since many banks in the District do not have trust depart ments, the ratios for trust department earnings are relatively meaningless and unimportant except for the group of banks with deposits of $10,000,000 and over. In other groups, the average ratio of trust department earnings represents a ratio based on the experience of only a part of the banks in the size group. The supplementary table at the bottom of this page indicates in part the extent of the unreliability. This table contains average ratios, for all size groups, of trust de partments earnings to total earnings computed by adding the ratios of the individual banks in the group and dividing by the number of banks that reported trust department earnings in this group. ►Those who are interested in a somewhat more intensive analysis of their own bank’s performance in relation to those of the other member banks in the District may procure upon request from this Bank a series of analytical questions that will aid in reviewing their bank’s performance. RA TIO O F TRUST DEPARTM ENT EARN IN G S T O TO T A L EARNIN GS— 1941 1 G roup $ 2 Number of Banks in Group 0—250,000........................ 250.000—500,00 0 500.000—1,060,00 0 l.Ofa.OOO—2.0fo,000....... 2,000,000—5,000,000....... 5!000,000—10,000,000.... Over 10,000.000............... A U .................................... •Fewer than 3 banks reported 9 43 68 71 67 21 36 315 3 4 Number w ith Trust Department Earnings Ratio on Basis of Colum n 3, % * * * 5 12 36 16 33 102 * 0.2 0.3 1.3 3.0 4.1 1.0 M o n t h ly 16 A V E R A G E R e v ie w o f the Federal Reserve B ank o f A tlanta fo r M arch 1942 O P E R A T IN G R A T IO S O F M E M B E R B A N K S GROUPED ACCORDING Up to f2!PMHW G r o u p s w i t h a v e r a g e d e p o s i t s o f. T O T A L E A B N IN G S : In te r e st a n d d iv i d e c r i s o n s e c u r i t i e s ......... to to $1.000000 Range within which fell middle 50% of the banks Average of Qroup $1,000,000 to $2,000,000 Range within which fell middle 50% of the banks A rm g * of Q ro u p Range within w hich fell middle 50% of the banks Average oi Qreup % % 5 0 .7 — 6 7 .0 5 5 .5 1.4— 1 9 .5 144 6 .2 — 18 .9 174 9 .8 — 2 4 .3 7 .3 — 3 2 .3 22.1 1 1 .4— 2 9 .6 2 0 .9 2 .3 — 9 .2 94 4 . 9 — 1 2 .4 4 .0 — .0 214 .3 44 2 .3 — 5 .9 5 .4 2 .7 — 94 5 .5 — 1 3 .8 19 3 .9 — 1 2 .2 1004 1004 £ d a r i e s a n d w a g e s .............................................. 324 2 7 .7 — 3 4 .8 324 2 7 .8 — 3 7 .1 294 2 5 .5 — 3 3 .2 In t e r e s t o n t i m e a n d s a v i n g s d e p o s i t s . . . 1 3 .8 9 .2 — 1 8 .3 134 8 .9 — 1 8 .7 154 1 0 .5 — 1 9 .3 T a x e s o t h e r t h a n r e a l e s t a t e ............................ 74 A l l o t h e r e x p e n s e s ............................................... T o t a l e x p e n s e s ................................................... 194 724 N e t c u r r e n t e a r n i n g s ..................................... 274 741 3 .9 — 9 .0 6 . 2 — 1 4 .4 1 1 .5 100.0 100.0 Range within which fell middle 50% of the banks Average of Qroup 4 7 .8 — 5 9 .8 1 3 .9 — 2 7 .2 Average of Group % % 4 7 .7 3 8 .6 — 5 6 .6 6 2 .7 2 9 .3 2 1 .2 - 3 6 .4 2 0 .5 34 .0 — 4 .7 4.1 1.8— 5 .4 14 7 .9 4 .8 — 9 .7 5 .4 4 .2 — 5 .4 5 .4 6 .7 — 1 7 .9 1 2 .7 7 .7 — 1 7 .9 134 104 1004 1004 1004 3 0 .3 2 5 .4 — 3 4 .6 3 0 .9 2 6 .8 — 3 5 .5 304 2 5 .5 — 3 5 .4 2 8 .7 2 5 .1 — 3 0 .8 3 0 .4 1 5 .7 1 2 .9 7 .4 — 1 7 .5 104 6 .0 — 1 3 .8 8.1 5 .1 — 1 0 .6 134 1.9— 2 .8 — 6 .5 74 3 .0 — 1 0 .4 54 2 0 .0 — 2 9 .5 264 2 2 .4 — 2 9 .6 M i 6 .6 5 .9 2 1 .7 1 8 .2 — 2 5 .5 2 0 .7 1 6 .6 — 2 3 .1 2 2 .9 1 8 .6 — 2 7 .0 64 2 4 .4 6 7 .8 — 8 0 .9 714 6 6 .2 - 7 7 .4 724 6 5 .0 — 7 7 .8 714 6 6 .8 — 7 6 .5 704 6 3 .6 — 7 3 .4 7 2 .1 284 6 5 .4 — 7 7 .6 2 2 .4 — 3 4 .6 7 2 .6 19 .1— 3 2 .2 274 2 2 .7 — 3 3 .9 284 2 2 .3 — 3 5 .0 2 8 .4 2 3 .5 — 3 3 .2 2 6 .6 — 3 6 .4 274 12.1 .3— 1 0 .9 44 2 .7 — 1 0 .8 14 4 .7 294 + 14 144 1 1 .0— 3 1 .5 244 1 9 .7 — 3 1 .9 274 1 9 .3 — 2 9 .1 3 1 .1 6 .3 — 1 1 .6 94 44 204 1 7 .6 — 2 4 .8 6 7 .9 — 7 7 .3 734 2 2 .7 — 3 2 .0 2 6 .1 9 .6 2 2 .7 — 2 9 .9 8 .9 6 .7 1 7 .7— 2 1 .7 4 .3 — 7.1 .0— 2.2 1 .3 315 36 Range within w hich fell middle 50% of the 1 0 .5 — 2 0 .0 2 .7 — 8 .2 9 .6 3 .2 — .0— .0 All District Member Banks 2 .9 — 1.7— + 2 .7 — 7 .3 2 .3 1 9 .8 — 3 2 .5 2 5 .1 7 .2 — 1 1 .0 8 .9 + 5 .3 8 .0 + 2.1— 6.2 24 1 8 .9 — 3 2 .4 2 5 .9 6 .4 — 1 1 .7 94 + 2 .6 — + , 9 .0 3 .2 2 3 .3 — 3 8 .4 2 4 .7 7 . 3 — 1 2 .4 84 6 .6 — T O T A L C A P IT A L A C C O U N T S : N e t c u r r e n t e a r n i n g s .......................................... 64 N e t ch a rg e - o ffs, e t c .............................................. 4 N e t p r o fits ............................................................. 64 C a s h d i v i d e n d s d e c l a r e d ................................. 24 R e a l e s t a t e a s s e t s ................................................. 174 T O 21 67 Rang* within w hich fall middle 50% of th« banka % 64 R A T IO S ol Q reup Over $ 3 0 4 0 0 ,0 0 0 5 8 .1 1004 H A T IO S T O A w tg * to $10400400 % 4.1 1941 to 4 9 .9 - 8 3 .3 .7— IN $ 5 ,0 0 0 .0 0 0 % 34 D IS T R IC T $ 5 ,0 0 0 .0 0 0 842 T o t a l e a r n i n g s ..................................................... 2 6 .7 $ 2 4 0 0 .0 0 0 /• % % 17 TO SIZE OF DEPOSITS 71 Range within which fell middle 50% of the banks R E S E R V E 6 3 .2 — 7 7 .4 A l l o t h e r e a r n i n g s ................................................. + F E D E R A L 6 7 .7 4 .4 4 S IX T H 6 6 .6 — 8 3 .6 % 1.8— N e t p r o fits ............................................................. T H E o f the Federal Reserve B a n k o f A tlanta fo r M arch 1942 724 34 N e t c h a rg e - o ffs, e t c .............................................. R e v ie w 6 4 .5 — 8 3 .6 % % 7 5 .1 1 4 .4 Average of Qroup T r u s t d e p a r t m e n t e a m u ^ s .............................. S e r v i c e c h a r g e s ...................................................... IN 43 Average oi Qroup In t e r e s t a n d dn.-x>unt o n l o a n s ..................... $ 5 0 0 ,0 0 0 $ 5 0 0 .0 0 0 N u m b e r oi b a n k s in e a c h g r o u p . R A T IO S T O $2 5 0 4 )0 0 M o n t h ly TO TA L + 4 .2 — 7 .2 7.1 4 .7 — 9 .3 94 1.9— 4 .4 24 .9— 3 .2 14 4 .1 — 8.1 44 3 .0 — 8 .2 8.1 .6— 3 .7 34 1.8— 4 .2 34 5.1— 1 2 .7 194 8 .9 — 2 5 .5 204 + .6— 2 .2 1.1 6 .0 — 9 .9 74 2 .8 — 4 .8 34 1 0 .0 — 2 9 .3 214 + 3 .5 .4 5 .6 — 1 0 .5 94 .8 — 4 .6 34 1 2 .2 — 3 0 .4 284 2 .8 — + .6 — 2 .0 4 6.0 — 1 0 .6 2 .3 — 3 .9 84 3.1 1 4 .5 — 3 6 .2 3 0 .4 + 7 .4 — 9 .8 .7— 1.8 5 .9 — 1 1 .0 2 .5 — 104 + + 4 104 3 .4 34 1 4 .3 - 3 9 .8 3 2 .1 2 .3 — 2 .4 4 7 .7 — 1 2 .3 84 3 .6 34 2 0 .3 — 4 3 . 0 2 .1 — 244 ASSETS : T o t a l e a r n i n g s ........................................................ 4 .7 4 .7 — 4 .9 4.1 3 .6 — 4 .7 4 .1 3 .6 — 4 .6 3 .6 T o t a l e x p e n s e s ........................................................ 3 .4 2.9 — 3 .7 34 25— 3 .4 24 2 .5 — 3 .2 24 N e t c u r r e n t e a r n i n g s ...................................... 14 1.0— 1 .4 1.1 .7— 1.4 14 7 .5 — 8 .9 .2— .5 4 .0— .5 4 .1— .3 14 .9— 1.5 1.0 .1 4 .4— 1.3 14 .8 — 1.3 4 L o a n s .............................................................................. 394 3 1 .8 - 4 4 .3 394 3 0 .8 - 5 0 .8 394 3 0 .6 — 4 7 .8 S e c u r i t i e s .................................................................... 164 2.1— 2 4 .6 1 2 .2 — 2 4 .5 R e a l e s t a t e a s s e t s ................................................. 5.1 C a s h a s s e t s ............................................................... 384 N e t ch arg e- o ffs, e t c .............................................. N e t p ro fits............................................................. .1 + 164 8.8— 2 0 .8 204 2 .8 34 1.3— 4.1 24 3 0 .5 — 4 3 .4 414 3 3 .7 — 4 8 .8 3 7 .7 1.1— + 1.6— 3 .1 — 4 .2 34 2 .8 — 4 .0 3 .1 2 .6 — 3 .4 24 2 .2 — 2 .9 3 .6 1.7— 2 .9 24 2.1 — 2 .8 24 1 .8 — 2 .3 14 1.4— 2.1 2.6 .7— 1.3 14 .6— 1 .3 4 .7— .9 4 .6 — 1.0 14 .1— .4 .1 — .2 .1— .2 4 .2— .2 .1 .6 — 1.3 4 .6 — 1.1 4 .6 — .9 4 .6— .9 .9 364 2 2 .5 — 4 8 .7 334 2 3 .5 — 4 3 .2 304 2 4 .2 — 3 7 .1 2 7 .4 1 8 .7 — 3 5 .6 354 224 9 .8 - 3 2 .6 2 4 .1 2 1 .5 — 3 2 .5 234 1 4 .7 — 3 2 .1 284 2 2 .5 — 3 5 .1 22.0 3 .4 24 3 1 .2 — 4 3 .3 3 9 .1 + + 1.5— .1 3 .0 2 .9 3 0 .5 — 4 5 .2 394 + .1 3 .9 24 3 2 .4 — 4 5 .5 434 1.6— + 1.2— 3 .5 3 8 .1 — 4 7 .0 + 1.8— 24 4 0 .4 3.1 2 .7 3 6 .5 — 4 4 . 7 394 A l l o t h e r a s s e t s ...................................................... .1 T o t a l a s s e t s ........................................................... 1004 T o t a l c a p it a l a c c o u n t s ........................................ 244 18 .2— 2 3 .1 164 12 .1 — 1 8 .7 134 9 . 8 — 1 6 .2 124 9 .9 — 14.1 104 8 .4 — 1 2 .6 94 8 .3 — 1 0 .7 8.1 394 3 0 .1 - 4 6 .3 284 2 0 .5 — 3 7 .4 214 15 .4— 2 5 .4 204 16.1— 2 2 .9 1 8 .1 1 4 .7 — 2 0 .6 174 1 4 .5 — 1 8 .0 134 124 324 9 . 2 — 1 4 .7 104 2 6 .1 9 . 0 — 1 2 .0 84 7 .2 — 1 0 .0 1 4 .7 2 4 .3 - 3 8 .0 1 8 .2 — 3 1 .4 1 8 .7 1 3 .6 — 2 3 .1 316 T O TOTA L .1 4 .0 — .1 1004 4 .0 — .2 1004 344 2 2 .2 — 3 0 .1 204 1 3 .9 - 2 4 . 4 154 1 0 .9 — 1 9 .4 1 4 .1 1 1 .0 — 1 6 .5 T im e 404 3 0 .1 — 4 7 . 2 314 2 1 .7 — 4 2 .2 374 2 8 .5 - 4 5 .2 354 2 8 .6 — 4 5 .6 d e p o s i t s ........................................................... T O .0 — .4 4 .1— .3 100.0 .3— .7 .7 .3 1004 1004 114 1 1 .4 — 1 5 .6 2 0 .9 D E P O S IT S : T o t a l c a p it a l a c c o u n t s .......................................... R A T IO 4 1004 A SSE T S: T o t a l c a p it a l a c c o u n t s .......................................... R A T IO S .0 - CT> E A R N IN G 4 1004 1 cb T O .1 r**» R A T IO .0 — T IM E D E P O S IT S : 24 1.9— 2 .2 14 1.8— 2 .2 14 1.7— 2 .0 1 .7 1.5— 2 .0 14 1.2 — 1 .8 14 .9 — 1.4 1.1 In t e r e s t a n d d i s c o u n t o n l o a n s ..................... 94 7 .9 — 1 0 .2 7 .7 7 .0 — 8 .5 7.1 6 .5 — 7 .8 64 6 .0 — 7 .2 64 5 .5 — 6 .6 5 .7 5 .2 — 6.1 44 R e c o v e r i e s o n l o a n s ............................................. 4 .0 — .4 4 .1— .3 4 .0 — .4 4 .0 — .4 .0 — .5 4 .1— .3 4 L o s s e s o n l o a n s ...................................................... 4 .0— .7 4 .0— .1 4 4 .1— .7 4 .1— .6 4 .0 — .4 4 .1— .6 .3 N e t r e t u r n o n l o a n s .......................................... 84 7.1— 9 .9 7 .1 6 .4 — 8 .3 64 6 .3 — 7 .7 64 5 .6 — 7 .1 6.1 5 .4 — 6 .7 54 4 .9 — 6.1 44 3 .9 — 4 .8 64 P e r s o n a l a n d retail i n s t a l m e n t p a p e r .......... 94 3 .6 — 1 4 .5 9.1 2 .8 — 1 5 .0 94 4 . 0 — 1 5 .6 94 3 .4 — 1 3 .3 114 5 . 8 — 1 4 .7 114 3 .5 — 1 7 .0 74 1.8— 1 2 .6 104 3 .5 — 34 2 .9 — 14 2.9— 3.9 34 2 .7 — 3 .8 X I 2 .6 — 3 .6 .0 - .1 .0 - 1.0 A .0 — .1 4 .0 - 2 14 .0 - 1.1 4 .1— 1 .0 .0 - .3 3 .0 - 4.5 * AA 4 — .4 4 .0 — 2 .9 — 4 .6 3 4 2.8 — In t e r e s t o n t i m e a n d s a v i n g s d e p o s i t s . . . [R A T IO S T O H A T IO S T O 14 1.6 L O A N S : 4.0— 4.8 .0— .2 .0— .4 64 4 4 S E C U R IT IE S : In t e r e s t a n d d iv id e n d s o n R e c o v e rie s o n s e c u r i t i e s ......... N et i+tum o n s e c u r i t i e s ............................... 3 .8 J 14 .0 - 2 .5 4 .0— 4 .0 - .5 4 3 .3 — 6 .8 u .0— .6 4 s e c u r i t i e s ............................................. 5 .7 .0— .0 s e c u r i t i e s .................................... Profits o n s e c u r it ie s s o l d ................................... Losses o n .8— 10 .0 3 .1 — .9 5 .0 4 J 4 U 24 2 .4 — 3 .1 24 1 .9 — 2 .8 34 .1 .0 - .1 4 .0 — .3 4 4 .1— 14 14 .4— 1.4 4 .5 .7 .1 — .7 .7 ; .2 — .8 4 4 .1 1 9 1 .9 — 3 .9 3 4 I 2 .4 — 3 .6 4 4 18 M o n t h ly R e v ie w o f the Federal Reserve B ank o f A tlanta fo r M arch 1942 INDUSTRIAL PRODUCTION N a tio n a l S u m m a ry o f B u s in e s s Prepared by the Board oi Governors oi the Federal Heeerre System 1940 1942 1936 r« d *ttl monthly index oi physical volume oi production, adjusted ior seasonal variation. 1935-39 aver age = 100. Subgroups shown are expressed in terms oi points in the total index. Latest figures shown are ior February 1942. WHOLESALE PRICES Bureau oi Labor Statistics' weeldy indexes. 1926 average = 100. Latest figures shown are ior w eek ending March 21. 1942. MEMBER BANKS IN KM LEA0MG CITIES W ednesday figures. Commercial loans, w hich include in dustrial agricultural loans, represent prior to May 19. 1937. so-called “ other loans'* as then reported. Latest figures shown are ior March 11. 1942. MEMBER BANK RESERVES AND RELATED ITEMS Industrial activity increased further in February and the first half of March. Retail trade was sustained at high levels and commodity prices continued to advance. P r o d u c tio n : In February the Board’s seasonally adjusted index of industrial pro duction rose from 171 to 173 per cent of the 1935-39 average. As in other recent months, activity in the durable goods manufacturing industries, where the majority of military products are made, continued to advance, while in industries making nondurable goods and at mines activity was maintained at about the levels reached last autumn. Steel production rose to 96 per cent of capacity in February and increased further to 98 per cent in the third week of March—which corresponded to an annual rate of nearly 87 million net tons. Lumber production also increased, following less than the usual sea sonal decline during the previous two months. In the machinery and transportation equip ment industries, now engaged mainly in armament production, activity continued to advance rapidly as plant utilization increased and capacity expanded. Conversion to armament production in the automobile industry, where output of civilian products was discontinued in early February, is apparently being effected much more rapidly than had been anticipated earlier. There were further increases in output at cotton textile mills and at chemical factories, reflecting an increasing amount of work on military orders. At meatpacking establish ments activity was maintained near the high rate reached in January. Shoe production increased by less than the usual seasonal amount. Anthracite production rose sharply in February and bituminous coal production was maintained near the high rate of other recent months. Output of crude petroleum, which had been at record levels in December and January, declined somewhat in the latter part of February and in the first half of March, reflecting transportation difficulties. C o n s t r u c t i o n i Value of construction contract awards increased considerably in February, according to figures of the F. W. Dodge Corporation, owing mainly to a sharp rise in awards for public projects. Total awards in February were half again as large as last year, and public awards were about three times as large. In nonresidential building, awards for public projects increased materially, while those for private projects continued to decline. There was a slight rise in awards for public utility construction. In residential building, contracts for private work changed little from January, while those for publicly-financed projects increased sharply and amounted to about half of the total for the first time on record. For the past six months there has been a noticeable shift in privately-financed housing activity from building for owner-occupancy to building for sale or rent; in February, awards for the former constituted only about one-fifth of the small-homes total. This shift is attributable mainly to the activity in defense areas and to legislation enacted last spring making possible the insurance of mortgages taken out by builders. D i s t r i b u t i o n .* Value of retail trade continued large in February. Sales at general merchandise stores and variety stores increased more than seasonally, while sales at department stores declined. In the first half of March department store sales increased by about the usual seasonal amount Freight-car loadings, which in January had been unusually large for this time of year, declined somewhat in February owing to smaller shipments of coal, grain, and miscel laneous freight C o m m o d i t y p r i c e s .* Wholesale prices continued to advance from the middle of February to the middle of March, particularly those for finished consumer goods such as meats, fruits and vegetables, shoes, clothing, and household items. Temporary maximum price orders were issued covering wholesale prices of some of these products, including pork, canned fruits and vegetables, finished cotton and rayon fabrics, cotton rugs, and bedding equipment These orders, according to statute, used as maximums the prices prevailing within five days prior to issuance. They are effective for only 60 days and may be replaced by regular schedules. in March income tax receipts by the Treasury for the first time reflected the higher schedule of rates. The effect of these receipts on the money market was largely offset by redemption of Treasury bills previ ously issued to mature during the tax collection period, by tax-anticipation notes turned in on payment of taxes, and by continued heavy Treasury expenditures. As a consequence a record volume of Treasury operations was effected with little influence on conditions in the market Excess reserves of member banks showed no large change and on March 18 amounted to about $3.2 billion. United States Government obligations held by member banks in leading cities showed little change during the first three weeks of March following a sharp rise in February. Commercial loans increased farther. U n i t e d S t a t e s G o v e r n m e n t s e c u r i t y p r i c e s : Prices of United States Gov eminent bonds advanced steadily from the middle of February to the middle of March. T r e a s u r y f i n a n c in g a n d b a n k c r e d i t : Mt So ares shown are lev March 11. WO. M o n t h ly R e v ie w o f th e F ederal R eserve B a n k o f A tla n ta fo r M arch 1942 CONDITION OF FEDERAL RESERVE BANK OF ATLANTA (In Thousands of Dollars) per Cent ch a n g e Mar. 18, 1942, from Mar. 18 Feb. 18 Mar. 19 Feb. 18 Mar. 19 1942 1942 1941 1942 1941 125 ................... 11 Bills d iscounted.............................. Industrial ad v an ces....................... 461 501 350 — 8 + 32 U. S. secu rities................................ 95,664 95,709 91,109 — 0 -I- 5 Total bills an d secu rities........... 96,249 96,210 91,471 + 0 4 -5 F. R. note circulation..................... 300,166 289,118 201,292 -j- 4 +49 Member bank reserve deposits. .. 343,629 336,656 268,893 + 2 + 28 U. S. G ov't dep o sits....................... 518 19,120 29,044 — 97 — 98 Foreign bank d ep o sits................... 25,622 21,663 27,411 + 18 — 7 Other dep o sits................................ 2,974 2,865 5,451 + 4 — 45 330,800 — 2 + 13 Total dep o sits.............................. 372,743 380,303 Total reserv es.................................. 586,265 579,000 448,466 + 1 + 31 Industrial advance commitments. 1,594 1,644 — 3 CONDITION OF 20 MEMBER BANK? IN SELECTED CITIES (In Thousands of Dollars) Per Cent ch a n g e Mar. 18, 1942, from Mar. 18 Feb. 18 Mar. 19 Feb. 18 Mar. 19 1942 1942 1941 1942 1941 Loans and Investm ents—T o ta l... 833,327 831,305 703,797 + 0 + 18 Loans—Total.................................... 404,279 415,980 378,497 — 3 + 7 Commercial, industrial, and agricultural lo an s................... 226,803 233,888 199,826 — 3 + 14 Open market p a p e r..................... 7,796 8,378 5,149 — 7 + 51 Loans to brokers and dealers in se c u ritie s.............................. 4,771 5,797 7,275 — 18 — 34 Other loans for purchasing 8,601 8,428 11,533 + 2 — 25 an d carrying secu rities......... Real estate lo an s......................... 31,867 33,440 35,562 — 5 — 10 Loans to b an k s............................ 1,314 1,352 1,210 — 3 + 9 Other lo an s.................................. 123,127 124,697 117,942 — 1 + 4 Investments—Total........................ 429,048 415,325 325,300 + 3 + 32 U. .S direct o bligations............. 256,991 243,754 153,880 + 5 + 67 O bligations guaranteed by U. S ............................................. 60,637 61,719 54,585 — 2 + 11 109,852 116,835 + 1 — 5 Other secu rities.......................... 111,420 Reserve with F. R. Bank............... 21'5,741 200,047 164,434 + 8 + 31 Cash in v au lt.................................... 18,283 18,132 15,309 + 1 + 19 Balances with domestic b an k s. .. 356,289 254,950 252,791 + 40 + 41 477,720 + 3 + 22 Demand d eposits-adjusted........... 583,154 568,865 189,746 191,648 — 0 — 1 Time d ep o sits.................................. 189,455 U. S. Gov't d ep o sits....................... 64,168 47,259 26,728 + 36 +140 Deposits of domestic b an k s......... 434,234 427,571 378,092 + 2 + 15 Borrow ings...................................... 50 ........ DEBITS TO INDIVIDUAL ACCOUNTS (In Thousands of Dollars) per Cent Change Feb. Jan. Feb. Feb. 1942 from ALABAMA 1942 1942 1941 Jan. 1942 Feb. 1941 Birm ingham .................... 143,121 171,327 101,951 — 16 + 40 D othan............................ 5,756 5,277 3,297 + 9 + 75 75,932 82,871 45,741— 8 + 66 M obile.............................. M ontgom ery................... 31,427 34,008 24,688 — 8 + 27 FLORIDA Jacksonville..................... 111,509 120,239 102,718 — 7 + 9 Miami.............................. 81,809 84,027 77,259 — 3 + 6 Pensacola........................ 14,710 15,367 10,400 — 4 + 41 T am pa.............................. 44,795 50,412 36,504 — 11 + 23 GEORGIA 7,722 9,838 5,697 — 22 + 36 A lbany............................ A tlanta............................ 290,371 319,112 246,941 — 9 + 18 A ugusta.......................... 37,164 38,587 21,637 — 4 + 72 Brunsw ick....................... 3,231 3,995 2,893 — 19 + 12 24,782 26,878 22,337 — 8 + 11 C olum bus...................... E lb e rto n ..,..................... 1,387 1,540 1,233 — 10 + 12 M acon.............................. 27,101 30,091 25,478 — 10 + 6 N ew nan.......................... 3,269 3,641 li,974 — 10 + 66 S avannah........................ 36,158 42,055 30,364 — 14 + 19 V aldosta.......................... 6,087 6,957 4,020 — 13 + 51 LOUISIANA New O rlean s................... 277,998 322,151 219,189 — 14 + 27 MISSISSIPPI H attiesburg..................... 10,289 12,216 10,499 — 16 — 2 Jackson............................ 39,266 46,235 30,765 — 15 + 28 16,448 19,662 13,596 — 16 + 21 M eridian.......................... V icksburg....................... 11,936 11,646 7,293 + 2 + 64 TENNESSEE C hattanooga................... 64,548 74,290 46,964 — 13 + 37 Knoxville........................ 37,702 49,019 33,581 — 23 + 12 N ashville......................... 108,088 125,280 87,917 — 14 + 23 SIXTH DISTRICT 26 C ities.......................... 1,512,606 1,706,721 1,214,936 — 11 + 25 UNITED STATES 274 C ities......................... 41,550,000 48,610,000 35,783,000 — 15 + 16 R E T A IL T R A D E — FE B R U A R Y 1942 (C itie s for w h ich no indexes are com piled) Baton R ouge. . . . C h a tta n o o g a .... Jackson............... Jacksonville....... Knoxville........... Jan. — — — — — Sales for F ebruary com pared with : 1942 Feb. 1941 Jan. 1942 Feb. 1941 10 + 7 M acon................. — 10 + 15 19 +24 Miami.................. — 4 12 11 +23 M ontgom ery.. . . — 3 1'5 9 +10 Tampa................. — 3 16 13 +17 SIXTH DISTRICT BUSINESS INDICATORS Indexes (1923-1925 Average = 100, except as noted) Adjusted* U nadjusted Feb. Jan. Feb. Feb. 1942 1942 1941 1942 RETAIL SALES** (1935-1939 Av. = 100) DISTRICT (46 F irm s)............................141 159r 127 122 A tlanta.......................................................................................... 120 Birmingham........................................... ......................................131 Nashville................................................. .....................................114 New O rleans......................................... ......................................116 RETAIL STOCKS DISTRICT (21 F irm s)............................ 115 106 83 113 A tlanta.....................................................213 186 160 204 Birmingham ........................................... 98 95 76 94 Nashville................................................. 96 90 60 91 New O rleans......................................... 105 91 67 105 WHOLESALE SALES TOTAL........................................................................................... 84 G roceries............................................... .......................................71 Dry G oods............................................. ...................................... 66 H ardw are............................................... ......................................137 D rugs............................................................................................ 147 CONTRACTS AWARDED DISTRICT..................................................................................... 80 R esidential............................................. ...................................... 74 O thers........................................................................................... 83 Alabam a.......................................................................................172 Florida...........................................................................................59 G eorgia.........................................................................................84 Louisiana......................................................................................79 M ississippi............................................. ..................................... 110 T ennessee............................................... ..................................... 59 BUILDING PERMITS 20 CITIES............................................... ...................................... 39 A tlanta...........................................................................................24 Birmingham........................................... ......................................29 Jacksonville........................................... ...................................... 54 Nashville....................................................................................... 5 New O rleans......................................... ...................................... 23 PIG IRON PRODUCTION** A labam a.......................................................................................139 COAL PRODUCTION** (1935-1939 Av. = 100) TWO STATES........................................ 142 151 134 165 A labam a................................................. ..................................... 171 T ennessee............................................... ....................................152 COTTON CONSUMPTION** THREE STATES.......................................................................... 263 Alabam a...................................................................................... 330 G eorgia....................................................................................... 237 T ennessee............................................... ....................................236 EMPLOYMENT (1932 Av. = 100) SIX STATES........................................... ..................................... 163 A labam a................................................. ..................................... 190 F lorida..........................................................................................126 G eorgia........................................................................................173 Louisiana................................................. ....................................158 M ississippi............................................. ..................................... 132 T ennessee............................................... .................................... 152 PAYROLLS (1932 Av. = 100) SIX STATES........................................... ..................................... 301 Alabama................................................. ..................................... 488 F lorida..........................................................................................149 G eorgia........................................................................................297 L ouisiana.....................................................................................259 M ississippi............................................. ..................................... 228 T ennessee................................................................................... 293 ELECTRIC POWER PRODUCTION** (1935-1939 Av. = 100) TOTAL.......................................................................................... 195 By W ater P ow er.........................................................................169 By F u el........................................................................................ 228 19 Jan. Feb. 1942 1941 123r 122 134 116 115 110 120 104 101 100 96 171 85 78 82 81 154 73 57 67 90 76 72 154 155 66 56 49 121 118 99r 97 lOOr 104 126 83 62 109 54 99 88 107 62 78 75 271 104 84 36 29 30 73 7 21 57 24 24 112 109 27 143 143 165 168 158 156 158 146 260 320 239 218 238 300 215 205 159 182 121 172 150 129 151 146 157 128 160 130 116 137 283 430 135 291 241 219 286 217 307 125 240 164 156 214 186 141 246r 171 151 196 Statistics (000 Omitted) Feb. Jan.Feb. Year to Date COMMERCIAL FAILURES 1942 19421941 1942 1941 Number (Actual, not thousands) 36 49 40 85 80 Liabilities......................................... $ 544 $ 618$ 331 $1,162 $ 634 Jan. Dec. Jan. FARM INCOME*** 1942 1941 1941 SIX STATES............................................... $ 94,377 $133,088 $ 64,700 A labam a..................................................... 8,801 19,557 5,918 Florida........................................................ 22,912 17,068 13,996 G eorgia....................................................... 10,025 16,499 8,590 Louisiana.................................................... 12,766 17,725 9,201 M ississippi................................................. 16,445 30,974 9,398 T ennessee................................................. 23,428 31,265 17,597 ‘ Adjusted for seasonal variation ‘ ‘Indexes of retail sales, electric power, coal, and pig iron production, and of cotton consumption are on a daily average basis. ‘ “ Includes Government benefit payments r = Revised 20 M o n t h ly R e v ie w o f th e F ederal R eserve B a n k o f A tla n ta fo r M arch 1942 D is tr ic t S u m m a r y o f B u s in e s s C o n d itio n s R e c o n n a is s a n c e Continued from page 13 trict declined 7 per cent from January to February, a decline larger than usually occurs at that tim e of year. February sales were, however, 24 per cent greater than in the same month last year. In February there was an increase in sales of shoes over January but decreases in other reported lines. Sales of autom obile supplies and electrical goods were down 24 per cent and 8 per cent, respectively, from February 1941, while there were increases in other lines that ranged up to 43 per cent in dry goods and 65 per cent in paper and paper products. Inventories averaged 1 per cent larger in dollar value than for January and 18 per cent greater than for February last year. ►Following an unusual January increase over December to the largest monthly total in m ore than twelve years, life insurance sales in the six states of the D istrict declined 32 per cent in February but were still 23 per cent greater than they were a year ago, and the combined January-February figures show a gain of 56 per cent over those months of 1941. In the United States, February sales declined 37 per cent from Jan uary and were up 18 per cent from February last year. Busi ness failures in the Sixth D istrict declined in February, in both num ber and liabilities. Compared with F ebruary last year the num ber of failures was sm aller by 10 per cent but liabilities were substantially larger. For the country as a whole failures declined in February from January, and from February a year ago. ►The value of construction contracts awarded in the Sixth D istrict declined in February by 19 per cent, and the February total was 20 per cent less than that for February last year. It was, moreover, the sm allest total reported for any month since M arch last year and, except for that month, it was the smallest total for any month in two years. Residential awards in February declined 23 per cent from January and, although larger than the residential total for December, were sm aller than for other months since January of last year and were less than those reported for any month in 1940 with the exception of February. The decline in residential awards is probably due in some p art to the wartime restrictions that have been put upon the construction of some types of residences. February residential awards accounted for 37 per cent of the m onth’s total, while in the 37 Eastern States for which F. W. Dodge Corporation figures are available they accounted fo r 39 p er cent of the total. The combined total of all contracts in January and F ebruary fo r this D istrict shows a decline of 2 per cent in com parison with those months of last year, but because of the increase in January, residential contracts for the two months combined were 13 per cent larger than a year ago. The value of building perm its issued in February at twenty reporting cities in the Sixth D istrict increased 11 per cent over January, but was 31 per cent less than the total for February last year. Excepting the month of January, the February total was sm aller than it had been in any other month in three years. ► Cotton textile operations in the D istrict reached another new high level in February. Although the actual num ber of bales of cotton consumed by the m ills declined somewhat because of the shorter month, an average of 12,481 bales of cotton was processed on each of the twenty-four working days in February. This represents a gain of 1 per cent over the January rate and 10 per cent above that for February last PER CENT DECREASE ^ PER CENT INCREASE Retail I H illl ■ i ■ iiif u — l l l i i l i l i i l Awarded Cotton C o f l i i i k m Pig Iron|||!|roduction Coal P r c iiU o n Fmr.lnj | | | | | | | Bank iii;i! iD iiiiB iiig iin iiiin i Bank Loans a r f « « # P t s 30 Demand D e p M t i P l P i i + 20 30 10 0 10 20 Sixth District statistics ior F ebruary 1942 com pared w ith F ebruary 1941. year. In the seven months of the current season— August through February— m ills in Alabam a, Georgia, and Tennessee have used 2,125,800 bales of cotton, an increase of 20 per cent over the num ber used in the corresponding part of the p re vious season. In the country as a whole textile operations advanced 3 per cent in February and were 14 per cent greater than a year ago. ►Steel m ill activity in the Birmingham-Gadsden area has been reported by The Iron Age at 99.0 per cent of capacity since the first week in February. In that week, and in January, activity was reported at 95.5 per cent, and this was approxi mately the average of the weekly figures reported during 1941. In the United States as a whole the rates reported for the first two weeks of M arch averaged 96 per cent of capacity, about the same as in February and only slightly below the rate for January. Pig iron production in A labam a declined 3 p er cent, on a daily average basis, in February, and was also 3 per cent below the rate fo r February last year. January this year had the largest m onthly total output on record for A labam a, but the highest daily rate of output was in F ebruary last year. For the country, February production declined 1 per cent from January but was 6 per cent greater than a year ago. ►Coal production in A labam a and Tennessee declined some what in February, because of the shorter month, but the daily rate of output continued at the January level and was 6 per cent higher than in February last year. The daily rate of output in January and F ebruary was the highest reported for these states since M arch 1927. In the country as a whole the February rate was down 2 per cent from January but was 5 per cent above that for February last year. ►Cash income received in January by the farm ers in the six states of the Sixth D istrict was less than it was in December, but 46 per cent greater than in January last year. In this District farm income has always declined in January because of sm aller crop marketings. The January total is the largest reported for that month in available figures. It amounted to $94,377,000, of which $85,017,000 was received from m arket ings of crops, livestock and livestock products, and $9,360,000 was in government benefit payments.
@FedFRASER