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M o n th ly ^ R e v ie w F E D E R A L R E S E R V E B A N K O F AT L A N T A V o lu m e X X V III A tla n ta , G e o r g ia , M a rc h N um ber 31, 1943 3 The D istrict Business S ituation March Sixth District business and industrial activity maintained its previous gains. Although some of the sta tistical evidence fails to show further increases over the pre vious month or over the corresponding period a year ago, there is little doubt that industrial operations in furtherance of the war effort are being held at the highest level possible in immediate circumstances. In the week ending March 20, 1943, department store sales in the Atlanta district were 5 per cent above the correspond ing week of 1942. Continued expansion of war industry and military activities in the District has resulted in a further increase in the circulation of this Bank’s notes. On March 24, circulation totaled 650.9 million dollars, an increase of 115 per cent over the same day a year ago. The increase in industrial activity is fairly widespread over the Southeast. For example, deliveries on naval contracts and subcontracts let in the Carolinas, Georgia, Florida, Alabama, Mississippi, and Tennessee are now approaching 100 million dollars’ worth monthly, representing a trebling of the 1942 rate. Some damage was done crops by the freeze of February and March, one estimate being that the 1943 tobacco crop in the Georgia bright leaf belt will decline 44 per cent from last year’s levels because of the destruction of seed beds during the freeze. The agricultural labor situation remains tight, and during the month the Secretary of Agriculture announced an agreement with the Bahamian Government providing for the importation of agricultural laborers from the Bahamas to Florida. Steel mill activity, reported weekly by The Iron Age, has been at 102 per cent of rated capacity since the middle of January, with the exception of one week, and it may be ex pected that capacity operations will continue except in in stances where the necessity for repairs may cause interrup tions. For many months Sixth District textile mills have been operating at virtual capacity, very largely on war orders. In the short month of February textile mills in Alabama, Geor gia, and Tennessee consumed nearly 302,000 bales of cotton. This consumption was at a daily rate slightly below that of January but slightly higher than in February a year ago. Lumber mills in the South, as elsewhere, are having an increasingly hard time filling their orders. The demand for lumber continues without abatement, but production has lagged considerably. Particularly in the regions near the shipyards is the manpower problem in logging and sawmill operations acute, with most mills unable to operate on any thing like a full-time basis. In last month’s Review attention was called to the wave of scare buying reflected in preliminary retail sales figures that were then available for the first half of February. Reports for the entire month received from 80 department stores I N R e c o n n a is s a n c e S ix th D is tric t s ta tis tic s io r F e b r u a r y 1943 c o m p a r e d w ith F e b r u a r y 1942 PER C E N T D E C R E A S E - W PER C E N T IN C R E A SE Det# » » 4 f Store Stocks Furniture Sales Constructiol|giif|||ii| |y|||||||||||j| |[|||[[|jJ||[||^||| Cotton Consumption ■ ■ lliB ii— C C d h c to . Bank Debits | M ember Bank Loans M ember B a n l l l l i i l i i i i i l i i l l l l l l l l l l l l l l l Demand Deposits-Adjusted 48 40 30 20 10 0 10 20 30 40 located all over the District indicate that this buying wave continued throughout the month, but weekly reports now available show that it has largely subsided during the present month. February sales by 80 reporting stores were 50 per cent larger than in February last year when sales were at the highest level ever reported for that month. Some part, but by no means a large part, of this increase may be attributed to higher prices, but by far the most of it must be laid to scare buying in anticipation (or fear) of the extension of rationing to clothing and possibly other commodities. The daily average sales index advanced 26 per cent from January to February, a rise 11 per cent larger than usually occurs at that time. Compared with this average increase of 50 per cent over February last year for the District, sales in Baton Rouge were twice as large, or an increase of 100 per cent; in Macon they were up 88 per cent; in Atlanta, 74 per cent; in Jack sonville, 68 per cent; in Nashville, 57 per cent; and in Tam pa, Montgomery, and Jackson they were up 56 per cent. In the first two weeks of March sales reported by a smaller number of stores averaged a little less than 10 per cent above the level of those weeks last year, and if this comparison should be borne out for the whole month of March, it will mean a decline of about 13 per cent from February. Department store inventories have declined each month since August. At the end of February they were 15 per cent smaller than they were a year earlier. It was in February, March, and April last year that stores were adding substan tially to their stocks, and the increase continued through June. M o n t h ly R eview of the Federal Reserve B a n k of Atlanta for M arch 1943 1 8 M ember B an k O perations f o r 1 9 4 2 with the year 1937 the Research and Statistics Department of the Federal Reserve Bank of Atlanta has annually made a study of the financial reports of Sixth Dis trict member banks. The study of these reports for the year 1942 has just been completed and summary tables of the principal findings are presented in this Review. While there are 318 member banks in the District, the study was confined to the reports of 315 banks since three of the member banks were admitted to membership during the year and financial reports for them for the entire year were not available. Three tables have been chosen for presentation. One table, found on page 19, shows operating ratios of all member banks for the years 1937 through 1942. The second table, also on page 19, shows member bank changes in deposits, earning assets, and profits for 1941-42. The third table, pages 20 and 2 1 , presents the average operating ratios of the member banks grouped according to size of deposits. Studied in relation to each other, the three tables provide a basis for certain gen eralizations with respect to the changes and adjustments the member banks have experienced as a result of the cur rent war. 1 . Sixth District member banks, instead of sharing in the general prosperity arising from war activities, actually ex perienced a decline in the rate of return on their capital ac counts. The average of the ratios of net profits to capital accounts for the 315 banks was 6 per cent for 1942 as com pared with 8 per cent for 1941. In dollar volume, profits for the group actually declined from 17.7 million dollars for 1941 to 14.8 million dollars for 1942, a decline of about 17 per cent. The smaller banks, as a general rule, suffered greater proportionate declines in net profits than did the larger banks. The seven banks in the group having deposits up to $250,000 reported a decline of 52 per cent in profits for 1942 as compared with 1941. The 42 banks having deposits of over 10 million dollars, on the other hand, reported a decrease of 13 per cent in profits for the same period. 2 . The decline in profits was reflected in a decline in the ratio of dividend payments to capital accounts. The average B e g in n in g of the ratios of dividends to capital accounts for the banks of the entire group was 3.1 for 1942 as compared with 3.5 for 1941, 3.4 for 1940 and 1939, and 3.3 for 1938. While the average of the rates of return to the stockholders was about 3 per cent for all banks, the smaller banks fared less well than did the larger banks. The group of banks with deposits of less than $250,000 had the smallest average ratio of divi dends to capital— 1.8 as compared with 3.5 for the banks in the deposit range from 1 million to 2 million dollars, and 3.0 for banks with deposits in excess of 10 million dollars. 3. The proportion of total earnings for 1942 represented by income from investments and from service charges on deposit accounts increased while that part derived from inter est and discount on loans decreased. The contrast with 1941 is especially notable, the ratio of interest and dividends on securities to total earnings increasing from 20.5 to 25.0. Nevertheless, in spite of very considerable increases in the investment portfolios of banks as the result of war financing, the proportion of earnings derived from interest and discount on securities was less for 1942 than it was for 1937— 25.0 as compared with 27.5. The proportion of bank earnings derived from loans for 1942 represented a reversal of the trend that began in the year 1937. In 1942 the ratio of interest and discount on loans to total earnings was 55.0 as compared with 62.7 for 1941, 62.3 for 1940, 60.3 for 1939, 59.1 for 1938, and 55.4 for 1937. Service charges have assumed increasing importance in recent years. In 1938 the average ratio of service charges to total earnings was 4.8. In 1939 this ratio was 4.9; in 1940, 5.1; in 1941, 5.4; and in 1942, 6.6. Service charges for the smaller banks represent a smaller part of the total income than for the larger banks. For banks with deposits of less than $500,000, service charges provided about 4 per cent of total earnings in 1942. For banks in the other groups the average ratio of service charges to total earnings was from 6 to 8 per cent. 4. The proportion of time deposits to total deposits has steadily declined over the past several years. In 1942 this ratio was 26.0, compared with 32.6 for 1941, 34.6 for 1940, and 35.2 for 1939. The proportion of time deposits to total deposits tends to be smaller as total deposits are larger. Time deposits of the smallest group were 36.2 per cent of total de posits. This proportion for the 42 largest banks was 16.1. 5. During 1942 member bank deposits in the District reached the highest levels ever recorded. The long-term trend in the growth of such deposits is pictured graphically in the accompanying chart. At the close of 1942 member bank de posits were 3.2 billion dollars as compared with 2.3 billion dollars at the close of 1941, an increase of 840 million dol lars, or 36 per cent. The growth of deposits was fairly wide spread among all banks, regardless of size. Banks in the group having deposits between $500,000 and 1 million dollars showed the greatest percentage increase for 1942 over 1941, an increase of about 49 per cent. None of the group averages, however, was less than 33 per cent. Nevertheless, it was the smaller banks that generally experienced the greatest in creases in deposits. 6 . The increase in deposits for the District as a whole for 1942 somewhat closely paralleled the increase in security M o n t h ly R eview of the Federal Reserve B a n k of Atlanta for M arch 1943 1 9 holdings (especially Government securities) on the part of next largest deposits, 15.9; and for the group with the larg the banks. The net increase in deposits for the year 1942 was est deposits, 7.7. 8. Continued Treasury offerings, drives to sell Govern 840 million dollars, while holdings of Government securities ment securities, and declining loan opportunities have brought increased by 768 million dollars. The smaller banks tended to gain more deposit funds than about substantial increases in the percentage of total earn they used in buying Government securities. The 57 banks in ing assets represented by securities. In general, it may be the group having deposits of from $500,000 to a million dol said that the higher the ratio of securities to total assets, the lars experienced an increase of 18 million dollars in deposits, larger are the deposits of each bank. The percentage of total assets represented by Government while they increased their holdings of Government securities securities is much greater than that represented by other se by only 8 million dollars. In contrast, the 42 banks having curities for all groups of banks except the very smallest in deposits in excess of 10 million dollars experienced a total point of deposits. Banks with deposits of less than $250,000 increase of 605 million dollars in deposits and at the same had an average ratio of 8.6 of Government securities to total time bought 606 million dollars of Government securities. assets and a ratio of 12.1 of other securities to total assets. The average ratio of Government securities to total de Corresponding ratios for banks with deposits in excess of 10 posits for all banks at the close of 1942 was 19.6. This ratio, million dollars were 27.5 and 8.8, respectively. as a general rule, was larger as deposits were larger. Banks So long as the imperative need for wartime financing in the smallest group in size of deposits had a ratio of only exists, the trends in the member bank operations that have 10.9, while the banks in the largest size group had a ratio been indicated in this analysis may be expected to continue. of 29.6. The proportion of member bank assets represented by Gov 7. There was a further decline during the year 1942 in ernment securities will tend to become larger. As bank hold the ratio of total capital accounts to deposits. For 1942 this ings of Government securities increase, the volume of de ratio was 11.5 as compared with 14.7 for 1941, 16.1 for 1940, posits will tend to rise and the ratio of capital accounts to and 17.1 for 1939. Here again, this ratio is in inverse pro deposits will tend to fall. With a sufficient volume of Govern portion to the volume of total deposits. The average ratio for ment securities, the banks may be in a position to reverse the seven smallest banks was 32.2; for the group with the the present tendency towards decreased profits. SUM M ARY TABLE O p e r a ti n g R a tio s o i A ll M e m b e r B a n k s in th e S ix th F e d e r a l R e s e r v e D is tric t, 1937-1942. 1937 1938 1939 1940 1941 1942 N u m b e r of b a n k s ..................................................... 320 318 313 314 315 315 R A T IO S : T O TO TA L E A R N IN G S I n te r e s t a n d d iv id e n d s o n s e c u r i t i e s ......... 27.5 I n te r e s t a n d d is c o u n t o n l o a n s .................... 55.4 S e rv ic e c h a r g e s ................................................... ** A ll o th e r e a r n i n g s .............................................. 17.1 T o ta l e a r n i n g s ...................................................100.0 S a la r ie s a n d w a g e s ............................................ 28.6 I n te r e s t o n tim e a n d s a v in g s d e p o s i t s . . . 15.3 A ll o th e r e x p e n s e s .............................................. 25.8 T o ta l e x p e n s e s ................................................ 69.7 N et c u r r e n t e a r n i n g s ...................................... 30.3 N et c h a rg e - o f f s , e t c ............................................ 3.6 N et p r o f it s ........................................................... 26.7 T O TO TA L C A PIT A L A C C O U N T S N et c u r r e n t e a r n i n g s .......................................... 9.4 N e t c h a rg e - o f f s , e t c ............................................ 1.4 N e t p r o f it s ........................................................... 8.0 C a s h d iv i d e n d s d e c l a r e d ............................... * T O TO TA L A SSETS T o ta l e a r n i n g s ....................................................... 4.1 N e t c u r r e n t e a r n i n g s ..................................... 1.2 N e t p r o f it s ........................................................... 1.1 S e c u r i t i e s ................................................................ * L o a n s ......................................................................... * R e a l e s ta te a s s e t s .............................................. * C a s h a s s e t s ............................................................ * All o th e r a s s e t s ..................................................... * T o ta l a s s e t s ....................................................... * T O TOTA L D E P O S IT S T o ta l c a p ita l a c c o u n t s ..................................... * T im e d e p o s i t s ....................................................... * TO TIM E D E P O S IT S I n te r e s t o n tim e a n d s a v in g s d e p o s i t s . . . * T O S E C U R ITIES I n te r e s t a n d d iv i d e n d s o n s e c u r i t i e s ......... 3.7 R e c o v e r ie s o n s e c u r i t i e s ................................. * P ro fits o n s e c u r i tie s s o l d ......................................... 7 L o s s e s o n s e c u r i t i e s ................................................... 2 N e t r e t u r n o n s e c u r i t i e s ............................... 4.2 T O LO A N S I n te r e s t a n d d is c o u n t o n l o a n s .................... 6.5 R e c o v e r ie s o n l o a n s .......................................... * L o s s e s o n l o a n s ............................................................ 4 N e t r e t u r n o n l o a n s ........................................ 6.1 *N ot p u b li s h e d ‘ ‘ I n c l u d e d in " a l l o th e r e a r n i n g s '' 24.7 23.6 21.6 20.5 59.1 60.3 62.3 62.7 4.8 4.9 5.1 5.4 11.4 11.2 11.0 11.4 100.0 100.0 100.0 100.0 29.1 29.6 30.1 30.4 15.2 14.7 14.4 13.6 25.7 25.9 27.1 28.1 70.0 70.2 71.6 72.1 30.0 29.8 28.4 27.9 4.6 2.9 3.7 3.2 25.4 26.9 24.7 24.7 9.0 1.4 7.6 3.3 9.0 1.0 8.0 3.4 8.7 1.3 7.4 3.4 8.9 .9 8.0 3.5 25.0 55.0 6.6 13.4 100.0 32.5 12.8 28.7 74.0 26.0 5.7 20.3 8.0 2.0 6.0 3.1 SIXTH DISTRICT MEMBER BANK CHANGES IN DEPOSITS. EARNING ASSETS, AND PROFITS FOR THE YEAR 1942** (In th o u sa n d s oi d o llars) N um ber Y ear E n ding Y ear E nding C hange D ec. 1942 D ec. 1941 in G ro u p A m ount G roup* P e r C en t Deposits A B C D E F G 7 25 57 81 72 31 42 1,660.9 12,887.4 53,690.4 149,095.1 285,395.0 273,627.0 2,410,341.9 1,204.9 9,275.1 36,155.8 104,790.8 200,513.3 189,136.7 1,805,557.1 T o tal 315 3,186,697.7 2,346,633.7 A B C D E F G 7 25 57 81 72 31 42 351.8 2,762.0 12,112.9 37,850.0 87,969.8 92,898.7 999,910.5 84.9 764.5 4,245.5 11,288.3 31,882.1 24,025.4 393,837.1 + 266.9 + 1,997.5 + 7,867.4 + 26,561.7 + 56,087.7 + 68,873.3 + 606,073.4 + 314.4 + 2 6 1 .3 + 185.3 + 235.3 + 175.9 + 2 8 6 .7 + 153.9 T o tal 315 1,233,855.7 466,127.8 + 767,727.9 + 164.7 A B C D E F G 7 25 57 81 72 31 42 391.9 3,346.8 13,818.4 33,583.0 56,411.8 51,248.8 473,228.4 546.5 3,990.4 14,366.0 40,780.2 70,477.0 63,999.9 576,932.3 — 154.6 — 643.6 — 547.6 — 7,197.2 — 14,065.2 — 12,751.1 — 103,703.9 — — — — — — — 315 632,029.1 771,092.3 — 139,063.2 — 18.0 G o v ern m en t + 456.0 + 3,612.3 + 17,534.6 + 44,304.3 + 84,881.7 + 84,490.3 + 604,784.8 + + + + + + + 37.8 38.9 48.5 42.3 42.3 44.7 33.5 + 840,064.0 + 35.8 S e cu rities Lo a n s 4.1 3.9 1.3 1.2 1.0 * * 25.0 * 37.2 * 3.6 * 33.9 * .3 * 100.0 3.8 3.6 1.1 1.0 .9 .9 23.0 22.0 36.5 35.5 3.2 2.7 37.0 39.5 .3 .3 100.0 100.0 2.8 .7 .6 27.4 27.2 2.1 43.1 .2 100.0 * * 17.1 35.2 16.1 34.6 14.7 32.6 11.5 26.0 * 1.8 1.7 1.6 1.5 3.6 * .8 .2 4.2 3.5 * 1.1 .2 4.4 3.3 * .9 .2 4.0 3.2 .5 .8 .5 4.0 2.4 .1 .2 .3 2.4 6.5 * .4 6.1 6.5 * .4 6.1 6.6 * .4 6.2 6.5 .3 .5 6.3 6.0 .3 .4 5.9 T o ta l 28.3 16.1 3.8 17.7 20.0 19.9 18.0 Proiits A B C D E F G T o tal 7 25 57 81 72 31 42 315 9.2 73.5 334.9 770.1 1,335.9 1,094.2 11,183.7 19.3 16.4 347.1 1,028.0 1,917.6 1,474.6 12,916.7 — + — — — — — 10.1 57.1 12.2 257.9 581.7 380.4 1,733.0 — 52.3 + 348.2 — 3.5 — 25.1 — 30.3 — 25.8 — 13.4 14,801.5 17,719.7 — 2,918.2 — 16.5 •A v erag e D eposits G r o u p A— U p to $ 250,000 G r o u p B— $ 250,000— 500,000 G ro u p C— 500,000— 1,000,000 G r o u p D— 1,000,000— 2,000,000 G r o u p E— 2,000,000— 5,000,000 G ro u p F— 5,000,000— 10,000,000 ____ G r o u p G— O v e r 10,000,000 * The b a n k s in e a c h g r o u p a r e id e n tic a l fo r b o th y e a r s , th e c la s s if ic a tio n o f e a c h b a n k b e i n g d e t e r m i n e d b y its d e p o s it s a s o f D e c e m b e r 31, 1942. M o n t h ly R eview of the Federal Reserve B a n k of Atlanta for M arch 1943 2 0 A V E R A G E 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 GROUPED ACCORDING $ 2 5 0 ,0 0 0 to $ 5 0 0 .0 0 0 U p to $ 2 5 0 ,0 0 0 BAN KS W ITH A V E R A G E D EPO SITS O F . NUM BER O F BAN KS IN E A C H G R O U P . $1.000.000 25 A v erag e of G ro u p RATIOS TO TOTAL EARNINGS: Interest and dividends on securities...... Interest and discount on loans.............. Service charges on deposit accounts___ Trust department earnings..................... All other earnings................................. Total earnings..................................... Salaries and wages.............................. Interest on time and savings deposits... All other expenses................................ Total expenses................................... Net current earnings............................ . Net charge-offs, etc............................... Taxes on net income............................. Net profits......................................... . $ 5 0 0 ,0 0 0 to R a n g e w ith in w h ic h fe ll m id d le 50% o f th e banks % % 1 5 .6 6 9 .8 4 .4 4 .5 — 2 3 .2 5 7 .3 — 8 7 .2 3 .9 — 5 .5 10.2 100.0 5 .5 — 1 8 .2 A v erag e oi G ro u p % 57 R a n g e w ith in w h ic h fe ll m id d le 50% o f th e banks % 1 1 .0 — 2 0 .7 6 4 .8 — 7 3 .6 1 .7 — 5 .4 A venge o! G ro u p % R a n g e w ith in w h ic h fe ll m id d le 50% o f th e banks % 1 0 .0 — 2 4 .5 5 3 .6 — 7 0 .0 2 .8 — 8 .5 3 8 .0 1 3 .8 2 5 .5 7 7 .3 2 2 .7 5 .5 3 .8 1 3 .4 3 8 .4 — 9 .1 — 2 3 .1 — 7 0 .9 — 1 7 .1 — + 1 .8 — .0 — 5 .1 — 4 6 .4 2 2 .5 3 0 .4 8 4 .1 3 0 .1 1 5 .5 7 .1 3 0 .9 1 7 .0 6 6 .7 4 .1 .0 1 2 .2 1 0 0 .0 3 5 .1 1 3 .4 2 8 .4 7 6 .9 2 3 .1 1 .1 2 .5 1 9 .5 4 .3 3 .3 — 1 .5 — .0 — 7 .0 4 .3 3 .3 5 .9 4 .9 2 .7 3 .7 — 3 .4 — 1 .3 — 7 .8 7 .5 3 .6 7 .6 5 .9 3 .2 RATIOS TO TOTAL ASSETS : Total earnings........................................ Net current earnings........................... Net profits.......................................... Government securities........................... Other securities..................................... Loans.................................................... Real estate assets................................. Cash assets........................................... All other assets..................................... Total assets........................................ 4 .0 .9 .5 8 .6 12.1 3 2 .5 4 .9 4 1 .9 .0 1 0 0 .0 3 .8 — .7 — .2 — 6 .2 — 1.7 — 2 6 .4 — .9 — 3 5 .4 — 4 .4 1.3 1.4 1 3 .6 2 6 .5 3 6 .9 5 .6 5 6 .3 3 .2 .7 .6 1 1 .4 7 .5 3 0 .7 2 .4 4 7 .8 .2 1 0 0 .0 2 .7 — .5 — .4 — 7 .4 — 2 .5 — 2 3 .3 — 1 .0 — 4 3 .3 — 3 .6 1 .0 .8 1 5 .9 1 0 .5 3 8 .6 3 .3 5 2 .6 .2 3 .2 .9 .7 1 3 .7 8 .5 3 0 .0 2 .0 4 5 .5 .3 1 0 0 .0 2 .3 — .6 — .4 — 9 .1 — 3 .0 — 2 4 .5 — 1 .1 — 3 7 .7 — 3 .1 1 .2 .9 1 6 .8 1 1 .3 3 7 .7 2 .3 5 2 .3 .2 RATIOS OF CAPITAL ACCOUNTS TO: Total assets........................................... Securities, loans, and real estate........... Risk assets............................................ Total deposits........................................ 2 3 .1 4 0 .2 4 7 .3 3 2 .2 1 7 .0 — 3 3 .4 — 3 8 .9 — 2 0 .5 — 3 5 .4 5 0 .3 6 1 .5 5 4 .9 1 3 .5 2 6 .9 3 4 .7 1 5 .9 1 0 .2 — 1 5 .3 1 8 .9 — 3 1 .3 2 7 .1 — 4 1 .3 1 1 .3 — 18.1 1 1 .8 2 2 .6 3 0 .8 1 3 .6 9 .1 — 1 7 .1 — 2 2 .7 — 1 0 .0 — 1 3 .6 2 4 .9 3 7 .1 1 5 .8 TIME DEPOSIT RATIOS: Time to total deposits............................ Interest to time deposits........................ 3 6 .2 2 .1 3 1 .5 — 5 3 .5 1 .9 — 2 .2 2 5 .7 1 .9 2 3 .3 — 3 3 .9 1 .7 — 2 .3 2 7 .7 1 .7 2 0 .3 — 3 7 . 3 1.5 — 2 .0 RATIOS TO SECURITIES: Interest and dividends on securities...... Recoveries on securities........................ Profits on securities sold........................ Losses on securities.............................. Net return on securities..................... 2 .7 .1 .1 .0 2 .9 RATIOS TO LOANS: Interest and discount on loans.............. Recoveries on loans.............................. Losses on loans..................................... Net return on loans............................ 8 .7 .3 .4 8 .6 RATIO TO TOTAL DEPOSITS: Government securities........................... 1 0 .9 RATIOS TO TOTAL CAPITAL ACCOUNTS : Net current earnings............................. Net profits............................................ . Cash dividends declared....................... 2.6 1.8 2 .7 — 3 .9 2 .5 3 1 .4 — 1 1 .2 — 2 5 .9 — 7 3 .0 — 1 8 .0 — + 2 .8 — .8 — 1 4 .2 — 3 9 .0 1 6 .4 3 3 .3 8 4 .3 2 8 .6 3 .8 3 .5 2 8 .0 1 9 .0 6 1 .0 6 .4 .0 1 3 .6 1 0 0 .0 0 3 3 .0 1 3 .4 2 7 .1 7 3 .5 2 6 .5 2 .5 3 .3 2 0 .7 9 .8 — 1 4 .3 2 .1 — 3 .0 2 .5 .1 ...— 2 .0 — .0 .0 3 .2 .1 .3 2 .4 6 .4 — .1 — .0 — 5 .7 — 7 .4 .5 .9 8 .1 6 .9 .3 .3 6 .9 J2 ...— .2 2 .7 — 4 .0 .2 .1 2 .8 7 .8 — ...— 9 .9 .3 .0 9 .6 7 .0 .6 1.1 6 .5 7 .3 — 1 5 .8 1 3 .2 . . . . . . . . 7 .8 — 8 . 8 — 1 8 .1 1 5 .6 6 .9 — 1 8 .4 2 7 .4 — 9 .0 — 2 3 .7 — 6 7 .0 — 1 9 .1 — + 1 .0 — 3 6 .7 1 7 .0 3 0 .6 8 1 .5 3 3 .6 7 .7 6 .3 1 1 .8 — 2 8 .2 5 .5 — 1 0 .4 3 .3 — 8 .4 2 .8 — 3 .7 2 .0 — 3 .1 ...— 1 .9 — .1 .1 3 .2 6 .1 — .. — .0 — 6 .0 — 7 .7 .2 .4 7 .5 1 0 .0 — 1 8 .9 M o n t h ly IN R e v ie w TH E o f th e F ederal R eserve B a n k o f A tla n ta fo r M arch 1943 S IX T H FEDER AL R ESER V E 2 1 D IS T R IC T IN 1942 T O A M O U N T O F D E P O S IT S 81 Average of Group $5,000,000 to $10,000,000 $2,000,000 to $5,000,000 $1,000,000 to $2,000,000 31 72 Range within which fell middle 50% of the banks Average of G roup O ver $10,000,000 Range within which fell middle 507o of the banks Average of Group 42 Range within w hich fell middle 50% of the banks Average of G roup Range within which fell middle 50 % of the banks A ll D istric t M em ber B anks 315 Average of Group 29.0— 35.5 6.3— 15.9 26.8— 35.8 67.9— 78.1 21.9— 33.4 .5— 11.1 .3— 7.2 12.0— 23.8 % 33.4 42.4 5.6 3.8 14.8 100.0 29.7 6.8 32.5 69.0 31.0 2.1 4.5 24.4 25.9— 32.3 4.4— 8.7 28.6— 36.0 63.1— 75.6 23.6— 36.7 + .5— 6.3 1.8— 6.2 19.5— 28.5 % 25.0 55.0 6.6 1.0 12.4 100.0 32.5 12.8 28.7 74.0 26.0 2.1 3.6 20.3 8.9 5.8 2.9 6.4— 10.1 3.8— 8.0 2.2— 3.5 10.2 7.6 3.0 7.5— 12.1 5.7— 8.9 2.1— 3.4 8.0 6.0 3.1 2.4— 3.0 .5— .9 .4— .7 12.0— 27.4 4.7— 15.4 17.0— 33.2 1.3— 2.9 34.3— 45.8 .0— .3 2.6 .7 .5 20.4 10.7 24.9 2.2 41.5 .3 100.0 2.3— 2.9 .5— 1.0 .4— .7 15.9— 23.5 7.7— 14.7 17.9— 29.7 1.4— 3.0 3 5 .6 - 4 6 .1 .0— .3 2.2 .7 .6 27.5 8.8 22.7 2.2 38.4 .4 100.0 1.9— 2.5 .5— .8 .4— .6 20.1— 33.6 5.5— 11.8 17.9— 28.2 1.5— 2.5 35.2— 40.4 .1— .5 2.8 .7 .6 17.7 9.7 27.2 2.1 43.1 .2 100.0 9.1 15.6 25.8 10.1 7.2— 10.6 12.6— 17.7 19.8— 32.0 7.7— 11.9 8.2 14.2 22.4 9.0 6.8— 9.2 12.8— 15.6 19.2— 25.1 7.4— 10.6 7.1 11.7 22.0 7.7 5.9— 7.8 9.4— 12.7 17.0— 25.8 6.3— 8.5 10.1 18.4 27.2 11.5 23.1— 37.4 1.4— 1.9 26.7 1.3 20.6— 31.2 .9— 1.7 24.3 1.2 19.1— 32.2 .9— 1.5 16.1 1.0 11.9— 18.2 .8— 1.1 26.0 1.5 2.6 .1 .2 .3 2.6 2.0— 2.9 . . . — .0 . . . — .2 . . . — .3 1.9— 3.1 2.4 .1 .1 .2 2.4 2.0— 2.7 . . . — .0 .0— .2 .0— .2 1.8— 2.9 2.2 .1 .2 .4 2.1 1.9— 2.5 . . . — .1 .0— .4 .0— .6 1.7— 2.5 2.0 .2 .2 .4 2.0 1.6— 2.2 . . . — .1 .1— .2 .0— .4 1.6— 2.3 2.4 .1 .2 .3 2.4 6.3 .3 .3 6.3 5.6— 6.7 .0— .5 .0— .5 5.6— 7.0 5.4 .3 .3 5.4 4.9— 6.0 .0— .6 .0— .3 4.9— 6.0 5.4 .4 .4 5.4 5.0— 6.2 .1— .6 .1— .5 4.9— 5.9 4.2 .2 .4 4.0 3.6— 4.6 .0— .3 .1— .6 3.3— 4.5 6.0 .3 .4 5.9 16.6 9.8— 21.9 22.4 19.3— 24.7 22.2 17.6— 25.2 29.6 22.5— 36.1 19.6 % 23.8 59.2 6.0 .2 10.8 100.0 31.8 15.9 27.8 75.5 24.5 1.2 3.5 19.8 26.1— 36.2 11.3— 20.5 23.3— 31.9 68.3— 84.2 17.0— 32.1 + 2.3— 4.0 .9— 5.4 15.1— 27.6 % 28.9 49.5 8.3 .9 12.4 100.0 33.4 12.7 28.5 74.6 25.4 1.8 3.5 20.1 29.8— 38.0 7.3— 17.6 24.5— 31.8 68.8— 79.7 20.3— 31.2 + 4.8— 5.3 .4— 5.1 15.0— 25.3 % 27.3 49.9 8.3 2.5 12.0 100.0 32.3 10.9 30.2 73.4 26.6 4.9 4.0 17.7 7.5 5.9 3.5 5.0— 10.6 3.5— 8.5 2.6— 4.6 8.1 6.2 2.9 5.3— 9.8 4.1— 8.4 2.4— 3.6 2.9 .7 .6 14.9 9.8 28.6 1.5 45.1 .1 100.0 2.5— 3.2 .5— 1.0 .4— .7 8.5— 20.0 3.8— 14.8 19.6— 38.1 1.0— 2.0 37.8— 51.1 . . . — .1 2.7 .7 .5 20.3 11.1 25.2 2.2 41.0 .2 100.0 10.0 18.5 26.2 11.2 7.8— 11.8 14.9— 20.6 19.6— 30.3 8.5— 13.4 29.1 1.7 % 12.8— 33.8 45.8— 74.9 3.0— 8.0 4.8— 14.8 % 16.6— 37.6 35.9— 60.5 4.3— 10.6 . . . — 1.2 8.0— 14.1 % 21.5— 35.6 43.1— 56.0 4.5— 9.9 .1— 3.9 7.6— 16.3 % 24.6— 39.4 33.0— 50.6 3.9— 6.3 1.7— 4.3 10.0— 19.4 22 M o n t h ly o f th e F ederal R e se rv e B a n k o f A tla n ta fo r M arch 1943 R e v ie w S ix th D is tr ic t B u s in e s s S ta tis tic s S eco n d UNITED STATES TREASURY BILLS Tenders and Allotments in the Sixth Federal Reserve District Dated Tenders Allotments March 3, 1943......................................................... $12,826,000 $18,160,000 March 10, 1943......................................................... 12.095.000 13.935.000 March 17, 1943......................................................... 10.621.000 13.121.000 March 24, 1943......................................................... 9,986,000 12.730.000 O W a r L o a n — A p r il 1 9 4 3 N A p r il 1 2 , th e s e c o n d m a jo r w a r f in a n c in g d r iv e w ill b e g in . T h e a n n o u n c e d g o a l is 13 b illio n d o lla r s , a p p r o x i m a te ly th e sam e am ount ra is e d la s t D e c e m b e r, w hen th e g o a l w a s 9 b illio n d o lla r s . T h e p r e s id e n ts o f e a c h o f th e tw e lv e F e d e r a l R e s e r v e B a n k s a r e s e r v in g a s c h a ir m e n o f U n ite d S ta te s T r e a s u r y W a r F in a n c e C o m m itte e s in th e ir r e s p e c tiv e D is tr ic ts , a n d h a v e b e e n v e s te d b y th e S e c r e ta r y o f INSTALMENT CASH LOANS Lender Federal Credit U nions..................... State Credit U nions......................... Industrial Banking Com panies. . . . Personal Finance C om panies........ Commercial Banks........................... Number Reporting 47 33 42 52 38 Per Cent Change Jan. 1943 tc Feb. 1943 Volume + 23 — 16 + 3 + 6 — 21 O utstandings — 2 — 7 — 6 — 3 — 58 th e T r e a s u r y w ith f u ll a u th o r ity a n d r e s p o n s ib ility d ir e c tio n o f th e A p r il F in a n c in g D riv e . f o r th e W . S. M c L a rin , J r ., P r e s id e n t o f th e F e d e r a l R e se rv e B a n k o f A tla n ta , is s e rv in g a s C h a ir m a n o f th e S ix th D is tr ic t W a r F in a n c e C o m m itte e . T h e S ix th D is tr ic t W a r F in a n c e C o m m itte e is c o m p o s e d o f W i l l i a m C . W a r d la w , J r . , D ir e c to r , V ic to r y F u n d D iv is io n ; A ls a C . G le n n , D ir e c to r , W a r S a v in g s D iv is io n ; th e S ta te A d m in is tr a to r s o f th e W a r S a v in g s S ta ffs in RETAIL FURNITURE STORE OPERATIONS oi Stores Total S ales.............................................. Cash S ales.............................................. Instalment an d Other Credit Sales. . Accounts Receivable, end of month. Collections during m onth................... Inventories, end of m onth................. 111 96 96 108 108 80 Per Cent Change F ebruary 1943 irom January 1943 F ebruary 1942 + + + — — + th e S ix th D is tric t o r to p m e m b ers of th e ir s ta ffs ; th e r e g io n a l m a n a g e r s o f th e S ix th D is tr ic t V ic to r y F u n d C o m 8 6 10 6 6 1 + — — — + 68 6 40 4 2 m itte e ; and le a d in g b a n k e rs, b ro k e rs, and b u s in e s s m e n of th e D is tric t. T h e W a r F in a n c e C o m m itte e w ill a c t in a n a d v is o r y c a p a c ity to its c h a ir m a n a n d w ill s e rv e to in te g r a te th e e ffo rts o f th e W a r S a v in g s S ta ff a n d th e V ic to r y F u n d C o m m itte e in th e s a le o f a l l G o v e r n m e n t s e c u r itie s to b e o ffe re d in th e A p r il F in a n c in g D riv e . S e v e r a l ty p e s o f s e c u r itie s w ill b e o f f e r e d f o r p u r c h a s e in DEBITS TO INDIVIDUAL BANK ACCOUNTS (In T housands oi Dollars) Per Cent Change Jan. Feb. Feb. Feb. 1943 irom 1942 1943 1943 Jan. 1943 Feb. 1942 ALABAMA Anniston*............... Birm ingham ........... D othan..................... G adsden*............... M obile..................... M ontgom ery......... 12,244 140,942 6,044 8,795 90,714 33,338 14,023 166,392 7,203 9,389 105,573 36,272 143,121 5,756 75,932 31,427 FLORIDA Jacksonville........... Miami....................... O rlando*................. P ensacola............... St. P etersb u rg ........ T am pa..................... 136,760 76,234 19,460 17,197 18,746 61,931 141,219 78,341 29,412 18,190 17,421 65,306 111,509 81,809 GEORGIA A lbany..................... A tlanta..................... A ugusta................... B runsw ick............. C olum bus............... E lberton................. M acon..................... N ew nan................... S avannah............... V aldosta................. 7,428 303,110 30,061 10,764 29,618 1,392 32,560 4,113 61,489 4,414 9,336 328,018 30,464 9,950 32,245 1,523 33,017 4,476 66,085 5,242 7,722 290,371 37,164 3,231 24,782 1,387 27,101 3,269 36,158 6,087 14,710 44,795 — — — — — — — — — — + — 13 15 16 6 14 8 —' 2 + 5 + 'i9 + 6 3 3 34 5 8 5 + 23 — 7 — 20 — 8 — 1 + 8 — 8 — 9 — 1 — 8 — 7 — 16 — 4 + 4 — 19 + 233 + 20 + o + 20 + 26 + 70 — 27 + '17 + '38 LOUISIANA Baton Rouge*....... Lake C harles*....... New O rlean s......... 38,082 16,454 307,363 41,056 17,136 355,549 277,998 — 14 + 11 MISSISSIPPI H attiesb u rg........... Jackson................... M eridian................. V icksburg............... 11,023 46,775 12,889 18,930 11,909 62,464 14,718 21,477 10,289 39,266 16,448 11,936 7 — 25 — 12 — 12 + 7 + 19 — 22 + 59 d u e te n y e a r s f r o m is s u e d a te , a n d y ie ld a b o u t 2 .9 p e r c e n t i f h e ld to m a tu r ity . T h e y a r e f o r s a le to n a t u r a l p e r s o n s o n ly a n d n o i n d i v i d u a l in v e s to r m a y p u r c h a s e m o r e th a n $ 5 ,0 0 0 w o r th ( m a tu r ity v a lu e ) in a n y o n e c a le n d a r y e a r . A d d itio n a l p u rc h a s e s in c o -o w n e rs h ip a r e p e r m is s ib le in c e r ta in cases. (2 ) United States Savings Bonds, Series F. 90,438 54,894 138,954 64,548 37,702 108,088 — 15 7 + 11 + 24 + 38 SIXTH DISTRICT 26 C ities................. 1,712,402 1,889,255 1,512,606 — 9 + 13 UNITED STATES 274 C ities............... 51,871,000 54,730,000 41,545,000 — + 25 20 + B o n d s in th is s e rie s a r e d u e tw e lv e y e a r s f r o m is s u e d a te a n d y ie ld a b o u t 2 .5 3 p e r c e n t i f h e l d t o m a t u r i t y . A n i n d i v i d u a l i n v e s t o r m a y b u y a s m u c h a s $ 1 0 0 ,0 0 0 w o r th o f th e s e s e c u r itie s (is s u e v a lu e ) in a n y o n e c a le n d a r y e a r , a n d th is fig u re in c lu d e s p u r c h a s e s o f S e rie s G b o n d s a s w e ll. S e rie s F b o n d s a r e f o r s a le to a n y b u y e r o th e r th a n a c o m m e r c ia l b a n k , a t 7 4 p e r c e n t o f m a tu r ity v a lu e . (3 ) United States Savings Bonds, Series G. T h i s s e r i e s i s d u e tw e lv e y e a r s f r o m is s u e d a te , is s o ld a t f a c e v a lu e , a n d y i e l d s 2 .5 0 p e r c e n t t o m a t u r i t y . I n t e r e s t i s p a i d s e m i a n n u a l l y o n th e s e b o n d s a n d th e y c o n tr a s t w ith S e r ie s F b o n d s w h ic h a re d is c o u n t b o n d s. A ny in d iv id u a l, p a rtn e rs h ip , o th e r th a n c o rp o ra a c o m m e rc ia l b a n k m a y p u r c h a s e S e r ie s G b o n d s , b u t n o t m o r e th a n $ 1 0 0 ,0 0 0 w o rth 71,918 46,766 148,629 (1 ) United States War Savings Bonds, Series E. T h e s e s e c u ritie s a r e s o ld a t 7 5 p e r c e n t o f th e ir m a tu r ity v a lu e , a r e tio n , o r f in a n c ia l in s titu tio n TENNESSEE C hattanooga......... Knoxville............... N ashville............... ‘ N o t in c lu d e d in totals A p r il. T h e is s u e s c o m p r is e th e f o llo w in g : ( is s u e v a lu e ) m a y b e p u r c h a s e d b y a n y o n e p e r s o n in a c a le n d a r y e a r , a n d th is l im ita tio n a p p lie s to th e c o m b in e d p u r c h a s e s o f S e rie s F a n d S e rie s G b o n d s . S e r ie s G S a v in g s b o n d s , lik e S e rie s E fo rm (4 ) o n ly a n d and S e rie s F , a r e is s u e d in r e g is te r e d a re n o t tra n s fe ra b le . 2 Per Cent Treasury Bonds of 1950-52. T h is is s u e w ill b e d a te d A p ril 15 , 1 9 4 3 , w ill b e a r in te re s t fro m t h a t d a te , a n d w ill b e d u e S e p te m b e r 1 5 , 1 9 5 2 . B o n d s o f th is is s u e w ill b e r e d e e m a b le a t th e o p tio n o f th e U n ite d S ta te s a t 1 0 0 p e r 5 c e n t a n d a c c ru e d in te re s t o n a n d a f te r S e p te m b e r 1 5 , 1 9 5 0 . T hey w ill be is s u e d in coupon or re g is te re d fo rm a t th e 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 1943 o p tio n o f th e p u r c h a s e r. T h e p ric e w ill b e 1 0 0 p e r c e n t a n d a c c ru e d in te re s t. S ix th D is tr ic t B u s in e s s In d e x e s ( 5 ) 2 .5 P e r C e n t T r e a s u r y B o n d s o f 1 9 6 4 -6 9 . T h e s e b o n d s w ill b e d a te d A p r il 1 5 , 1 9 4 3 , a n d w ill b e a r in te r e s t f ro m th a t d a te . T h e y w ill b e d u e J u n e 1 5 , 1 9 6 9 , a n d w ill b e r e d e e m a b le a t th e o p tio n o f th e U n ite d S ta te s a t 1 0 0 p e r c e n t a n d a c c r u e d in te r e s t o n a n d a f te r J u n e 1 5 , 1 9 6 4 . T h e y w ill b e is s u e d in e ith e r c o u p o n o r r e g is te r e d f o r m a t th e o p tio n o f th e p u r c h a s e r, a n d w ill b e s o ld a t 1 0 0 p e r a c c ru e d in te re s t. U n lik e th e 2 p e r c e n t T r e a s u r y cent and bonds of 1 9 5 0 -5 2 , th e is s u e o f w h ic h w ill b e s u b je c t to n o r e s tr ic tio n s w h a t e v e r , t h e 2 .5 p e r c e n t T r e a s u r y b o n d s m a y n o t b e h e l d o r p u r c h a s e d b y c o m m e r c ia l b a n k s — th o s e b a n k s a c c e p tin g d e m a n d d e p o s its — f o r t h e ir o w n a c c o u n t u n til A p r il 1 5 , 1 9 5 3 . (6 ) 7/ g J>er C e n t T r e a s u r y C e r t i f i c a t e s o f I n d e b t e d n e s s o f S e r ie s B -1 9 4 4 . T h e s e c e r tific a te s w ill b e d a te d A p r il 1 5 , 1 9 4 3 , w ill b e a r in te r e s t fro m Departm ent Store Sales* (1935-39 Average = 100) Adjusted** Unadjusted Feb. Jan. Feb. Jan. Feb. 1943 1943 1942 1943 1943 DISTRICT............. A tlanta............. Baton R o u g e ... Birmingham. . . . Chattanooga. . . Jackson............. Jacksonville. .. . Knoxville......... M acon............... Miami............... M ontgom ery. . . N ashville......... New Orleans. .. Tam pa............... 216 209 300 199 226 291 283 213 320 152 265 177 196 262 DISTRICT............. A tlanta............... Birmingham. . . . M ontgomery. . . N ashville......... New Orleans. .. Departm ent Store Stocks (1935-39 Average = 100) Adjusted** Unadjusted Jan. Jan. Feb. Feb. Feb. 1943 1943 1942 1943 1943 147r 162 140 137 138r 154 162 187r 180 165r 144 127 140 122 121 168 168 140 164 149 225 184 188 168 183 107 141 172 107 122 TOTAL................... A labam a........... G eorgia........... T ennessee....... Cotton Consumption* (1935-39 Average = 100) Feb. Jan. Feb. 1943 1943 1942 178 183 177 186 188 189 175 183 170 159 170 162 195r 175r 260 186 200 237 273 198 266 134 240 163 190 226 144 121 151 149 157 186 168 144 170 115 172 117 140 175 190 184 233 166 175 227 234 184 244 194 211 151 161 235 Feb. 1942 151r 129r 173 132 151 158 194 144 184 151 169 115 142 187 127 105 117 124 122 145 139 124 130 147 137 100 116 157 th a t d a te , a n d w ill b e d u e o n A p r il 1, 1 9 4 4 . T h e p r ic e w ill b e 1 0 0 p e r c e n t a n d a c c ru e d in te re s t. S a le s to c o m m e r c ia l b a n k s w ill b e lim ite d to 2 b i l l i o n d o lla r s o r th e r e a b o u ts a n d s u b s c r ip tio n s b y c o m m e rc ia l b a n k s f o r t h e i r o w n a c c o u n t i n e x c e s s o f $ 1 0 0 ,0 0 0 w i l l b e s u b j e c t to a llo tm e n t. A ll o th e r s u b s c r ip tio n s w ill b e a llo tte d in f u ll. (7 ) T r e a s u r y T a x S a v in g s N o te s , S e r ie s C . T h e s e n o te s w ill b e d a te d th e f irs t d a y o f th e m o n th in w h ic h th e y a re p u r c h a s e d , a n d w ill b e d u e th r e e y e a r s f r o m th a t d a te . T h e y a r e a c c e p ta b le a t p a r a n d a c c r u e d in te r e s t in p a y m e n t o f F e d e r a l in c o m e , e s ta te , a n d g if t ta x e s . I n a d d itio n , th e y a r e r e d e e m a b le f o r c a s h a t p a r a n d a c c r u e d in te r e s t a t th e o p tio n o f th e o w n e r a t a n y tim e d u r in g a n d a f te r th e s ix th c a le n d a r m o n th a f t e r th e m o n th o f is s u e , o n 3 0 d a y s ’ n o tic e , e x c e p t th a t n o te s in s c rib e d in th e n a m e o f a c o m m e rc ia l b a n k a r e re d e e m a b le a t p a r o n ly , a n d n o te s a c q u ir e d b y a c o m m e rc ia l b a n k th r o u g h f o r f e itu r e o f a lo a n a r e re d e e m a b le a t th e re d e m p tio n v a lu e f o r th e m o n th (8 ) 2 3 in w h ic h so a c q u ire d . Feb. 1942 158 172 138 137 163 173 Coal Production* (1935-39 Average = 100) Feb. Jan. Feb. 1942 1943 1943 165 169 163 171 174 171 158 152 146 T r e a s u r y B ills . T h e s e s e c u ritie s a r e o ffe re d w e e k ly o n a d is c o u n t b a s is to th e h ig h e s t b id d e r a n d u s u a lly h a v e a m a t u r i t y o f 9 1 d a y s . T h e F e d e r a l R e s e r v e B a n k s s t a n d r e a d y to p u r c h a s e a n d r e s e ll th e s e b i l l s a t a d is c o u n t r a te o f % per cent p er annum . A n n o u n cem en t T h e F e d e ra l R e se r v e B a n k o f A tla n ta o n M a rch 1 6 , 1 9 4 3 , w e l c o m e d t h e L i m e s t o n e C o u n t y B a n k o f A th e n s , A l a b a m a , t o m e m b e r s h i p in th e F e d e r a l R e s e r v e S y s t e m . T h e b a n k o p e n e d f o r b u s in e s s o n O c to b e r 3 , 1 9 2 7 , w i t h p a i d - i n c a p i t a l o f $ 3 5 ,0 0 0 . T h is o r i g i n a l c a p i t a l h a s s in c e b e e n in c r e a s e d to $ 1 0 0 ,0 0 0 , a n d th e b a n k n o w h a s , i n a d d i t i o n , a s u r p l u s o f $ 6 0 ,0 0 0 . I t s t o t a l r e s o u r c e s a t t h e c l o s e o f t h e y e a r 1 9 4 2 a m o u n t e d t o $ 2 ,5 0 0 ,0 0 0 . B r u c e N e ls o n is C h a ir m a n o f th e B o a r d o f D ir e c to r s , a n d T . E . W i l l i a m s is P r e s i d e n t. T h e t h r e e V ic e P r e s i d e n ts a re W . V a n G ilb e r t, A . M . M c C o n n e ll, a n d U . G . W h ite ; A lle n B e a s le y is C a s h ie r ; a n d J o h n J . H u b e r , M r s . C . D . W h ite , a n d M r s . L o la B e a s le y a r e A s s is ta n t C a s h ie r s . In a d d itio n to M e ss rs . N e ls o n , W illia m s , G ilb e r t, M c C o n n e ll, W h ite , a n d B e a s le y , th e B o a r d o f D ir e c to r s a ls o in c lu d e s A . B . C r u tc h e r , J a m e s E . H o r to n , C . H . L in d s a y , E . E . N e ls o n , a n d G . B . P h illip s . Construction Contracts (1923-25 A verage = 100) Jan. Feb. Feb. 1942 1943 1943 169r 80 DISTRICT.... 151 74 Residential 123r 48 220 200r 83 O thers....... 171 373 Alabam a. . . 267 96 100 59 Florida. . . . 84 173 115 G eorgia. . . 149 79 Louisiana. . 378 . 793 110 310 Mississippi 144 59 42 T ennessee. Gasoline Tax Collections (1939' Monthly Average = 100) Feb. Jan. Feb. 1943 1943 1942 DISTRICT.... 81 86 125 A labam a.. . 89 77 129 Florida. .. . 70 86 117 G eorgia. . . 74 86 120 Louisiana. . 86 63 125 Mississippi 83 85r 129 T ennessee. 90 113 138 Cost of Living (1935-39 Average = 100) Jan. Feb. Feb. 1942 1943 1943 117 123 123 ALL ITEMS.. 137 120 F ood........... 137 119 127 Clothing. .. . 126 127 113 113 R ent............. Fuel, elec tricity, 104 and ic e . . . . 106 106 Home fur 118 121 121 nishings. . . Miscel 114 110 laneous. . . . 114 Electric Power Production* SIX STATES. Hydro generated. Fuel generated. (1935-39 Average = 100) Feb. Jan. Feb. 1943 1943 1942 230 229 195 257 259 170 195 189 227 ‘ Indexes of departm ent store sales, electric pow er and coal production, and of cotton consumption are on a daily average basis. ‘ ‘Adjusted for seasonal variation, r = Revised. Back figures for departm ent store sales and stocks, cotton consumption, gasoline tax collections, and cost of living indexes in the new series will be furnished upon request. 24 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 1943 The National Business Situation I n d u s t r i a l a c tiv ity c o n tin u e d to a d v a n c e in F e b r u a r y a n d th e e a r ly p a r t o f M a rc h . R e ta il s a le s o f m e r c h a n d is e , p a r tic u la r ly c lo th in g , w e re e x c e p tio n a lly la rg e in F e b r u a ry b u t d e c lin e d s o m e w h a t in M a rc h . W h o le s a le p ric e s , p a r tic u la r ly o f fa rm p ro d u c ts , a d v a n c e d f u rth e r. P ro d u c tio n : T o ta l in d u s tr ia l o u tp u t c o n tin u e d to in c re a s e in g la s t su m m e r. F e d e r a l a w a rd s f o r h o u s in g d e c lin e in F e b r u a ry . c o n tin u e d to D is tr ib u tio n : D e p a r tm e n t s to re s a le s in c r e a s e d c o n s id e ra b ly i n F e b r u a r y a n d t h e B o a r d ’s s e a s o n a l l y a d j u s t e d i n d e x r o s e to a n e w h ig h le v e l o f 1 6 7 p e r c e n t o f th e 1 9 2 3 -2 5 a v e r a g e . P re v io u s p e a k s h a d b e e n 1 4 3 in J a n u a r y a n d 1 3 8 in J a n u a ry a n d N o v e m b e r 1 9 4 2 . T h e in c r e a s e in F e b r u a r y r e fle c te d a i n F e b r u a r y a n d t h e B o a r d ’s a d j u s t e d i n d e x r o s e t o 2 0 3 p e r c e n t o f th e 1 9 3 5 -1 9 3 9 a v e r a g e a s c o m p a r e d w ith 1 9 9 in J a n u a r y . L a r g e r o u tp u t a t c o a l m in e s , s te e l m ills , a n d a r m a m e n t n e w b u y in g w a v e th a t b e g a n e a r ly in th e m o n th a n d c e n te re d c h i e f ly i n c l o t h i n g i t e m s . I n t h e f i r s t h a l f o f M a r c h t h e b u y p la n ts w a s c h ie fly r e s p o n s ib le f o r th e r is e in th e in d e x . F e b r u a r y d e liv e r ie s o f f in is h e d m u n itio n s , in c lu d in g a r e c o r d o f in g w a v e s u b s id e d s o m e w h a t a n d s a le s h ig h le v e l r e a c h e d d u r in g F e b r u a r y . 1 3 0 m e r c h a n t s h ip s , c o n s id e r a b ly e x c e e d e d th e p r e v io u s m o n th . F r e ig h t c a r lo a d in g s s h o w e d m o r e th a n a s e a s o n a l r is e in F e b r u a r y a n d t h e f i r s t tw o w e e k s o f M a r c h a n d t h e B o a r d ’s a d ju s te d in d e x a v e r a g e d 4 p e r c e n t h ig h e r th a n in J a n u a r y . L a r g e o ff-s e a s o n a l m o v e m e n ts o f g r a i n c o n tin u e d to b e th e A c tiv ity a t ste e l m ills r e a c h e d th e p e a k se t la s t O c to b e r. O p e r a tio n s a v e r a g e d 9 8 p e r c e n t o f th e m ills ’ c a p a c ity , w h ic h h a s b e e n in c r e a s e d sin c e th a t tim e m illio n to n s o f in g o ts a n n u a lly . to a fig u re above 90 fro m th e m o st u n u su a l fe a tu re o f c a rlo a d in g s . L u m b e r p r o d u c tio n , w h ic h d e c lin e d in J a n u a r y o w in g la r g e ly to u n f a v o r a b le w e a th e r , in c r e a s e d in F e b r u a r y s o m e w h a t m o re th a n is u s u a l a t th is se a so n . O u tp u t o f te x tile p ro d u c ts re m a in e d d e c lin e d a t th e h ig h le v e l o f o th e r re c e n t m o n th s . C o tto n c o n s u m p tio n w a s s lig h tly lo w e r th a n th e c o r r e s p o n d in g m o n th o f th e p re v io u s y e a r , w h ile C o m m o d ity P r ic e s : P ric e s of a num ber of c o m m o d itie s a d v a n c e d f u rth e r in F e b r u a ry a n d in th e e a r ly p a r t o f M a rc h . F a r m p r o d u c ts h a v e c o n tin u e d to s h o w th e la r g e s t in c re a s e s a n d p r ic e s r e c e iv e d b y f a r m e r s in th e m id d le o f M a rc h a r e e s tim a te d to b e a b o u t 3 0 p e r c e n t h ig h e r th a n a y e a r a g o . F r u it a n d v e g e ta b le p r ic e s a r e c o n s id e ra b ly h ig h e r n o w th a n d u r in g th e sa m e s e a s o n la s t y e a r . P ric e s o f b r e a d g r a in s a n d r a y o n a n d w o o l c o n s u m p tio n w e re s o m e w h a t h ig h e r th a n la s t y e a r . S h o e p r o d u c tio n , u n c h a n g e d f r o m J a n u a r y , w a s c lo s e g r a in s u s e d f o r liv e s to c k f e e d in g h a v e a d v a n c e d s h a r p l y in to th e le v e l se t b y th e W a r P r o d u c tio n r e c e n t m o n th s a n d liv e s to c k p r ic e s h a v e a ls o r is e n f u r th e r . I n r e ta il m a r k e ts th e la r g e s t a d v a n c e s h a v e c o n tin u e d to B o a rd o r d e r w h ic h lim its o u tp u t o f s h o e s f o r c iv ilia n s in th e s ix m o n th s b e g in n in g M a rc h 1 to th e n u m b e r p r o d u c e d in th e la s t h a l f o f 1 9 4 2 . M e a tp a c k in g d e c lin e d le s s th a n s e a s o n a lly a f te r a r e d u c tio n in J a n u a r y , w h ile o u tp u t o f m o st o th e r fo o d s w as lo w e r. C o a l o u tp u t ro s e s h a r p ly in F e b r u a r y w ith th e g e n e r a l a d o p tio n o f th e s ix -d a y w o rk w e e k in th e m in e s . O p e r a tio n s in th e a n th r a c ite m in e s in c r e a s e d to th e h ig h le v e l o f la s t s u m m e r w h ile o u tp u t o f b itu m in o u s c o a l w a s th e h ig h e s t in m a n y y ears. T h e v a lu e o f c o n s tru c tio n c o n tra c ts a w a rd e d in F e b r u a ry w a s a b o u t t h e s a m e a s i n J a n u a r y a c c o r d i n g to r e p o r t s o f t h e F . W . D o d g e C o r p o r a tio n . T o ta l F e d e r a l a w a rd s f o r w a r c o n s tr u c tio n r e m a in e d a t a le v e l a b o u t o n e - th ir d a s la r g e a s d u r b e in fo o d p ric e s . I n th e l a t t e r p a r t o f F e b r u a r y m a x im u m le v e ls w e re e s ta b lis h e d f o r le a d in g f r e s h v e g e ta b le s f o llo w in g s h a r p p r ic e in c r e a s e s r e s u ltin g in p a r t f r o m th e r e s tr ic tio n s o n r e ta il s a le s o f c a n n e d a n d d r ie d v e g e ta b le s a n d f ru its . B ank C r e d it: E x cess re se rv e s of m em ber banks re m a in e d g e n e r a lly a b o v e 2 b illio n d o l l a r s d u r in g th e f irs t tw o w e e k s o f M a r c h , c o m p a r e d w i t h a n a v e r a g e o f a b o u t 1 .8 b i l l i o n d u r in g th e la tte r p a r t o f F e b r u a r y . D u r in g th e f o u r w eek s e n d in g M a rc h 17 to ta l R e se rv e B a n k h o ld in g s o f G o v e rn m e n t se c u ritie s sh o w e d a n in c re a s e o f 4 7 0 m illio n d o lla r s . P u r c h a s e s o f s p e c ia l T r e a s u r y o n e -d a y c e r tific a te s m o d e r a te d th e e ffe c t o f la r g e s c a le s h if ts o f f u n d s o v e r th e ta x p a y m e n t p e rio d . (Prepared by the Board of Governors of the Federal Reserve System) IN D U S TR IA L Fe d e ral R e s e r v e m o n th ly in d e x . L a te st s h o w n ia for F e b r u a r y 1943. D E PA R TM EN T S T O R E S A L E S AND S T O C K S PRODUCTION f ig u r e F e d e r a l R e s e r v e m o n th ly in d e x e s. L a te st f ig u r e s s h o w n a r ? fo r F e b r u a r y 1943. W H O LE S A LE P R IC E S B u r e a u of L a b o r S t a t is t ic s ' w e e k ly in d e x e s. L a te st f ig u r e s s h o w n a re fo r w e e k e n d in g M a r c h 20. 1943.
@FedFRASER