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The Common Market and Agriculture Atlanta, Georgia May • 1963 Also in this issue: GOOD GROW TH G E O R G I A 'S IN S IX T H M ARKS ECONOM Y '6 2 D IS T R IC T S T A T IS T IC S D IS T R IC T B U S IN E S S C O N D IT IO N S A s certa in as th e k n o w le d g e o f d ea th an d ta x e s is th e re a liza tio n o f m a n y farm ers th a t th ey m u st e x p o r t th eir p r o d u c e to p ro sp er. B u ild in g an d h o ld in g an ex p o rt m a rk et to a c h ie v e m a x im u m in c o m e h a s lo n g b ee n a ca rd in a l a im o f farm ers in D istr ict sta tes, an d th e y h a v e d e v e l o p e d a la rg e e x p o r t trade. In fisca l year 1 9 6 1 , th eir e x p o r t sa les o f rice, c o tto n , and to b a c c o a c c o u n ted fo r a lm o st tw o -fifth s o f th e v a lu e o f their a n n u a l h a rv ests or sa les o f th o se cro p s, a cco rd in g to th e U n ite d S tates D ep a r tm e n t o f C o m m erce. F u rth erm o re, a lm o st o n e -fo u r th o f th e farm la o o r fo r c e in D istrict sta tes w a s u tiliz e d to p ro d u c e th e v o lu m e so ld ab road . T o la y b are an d sev er th e D istr ic t’s fa rm e x p o r t n erv e is to sev er a p o c k e tb o o k n erv e, an d th e p a in ca u sed by su ch an e v e n t c o u ld b e in ten se. W h en farm ers o b se rv e cu rren t e c o n o m ic an d p o litic a l d e v elo p m en ts a b road , e sp e cia lly in th e E u ro p e a n E c o n o m ic C o m m u n ity or C o m m o n M ark et, w h o se m em b er n a tio n s are F ra n c e , Ita ly , W est G erm a n y, th e N eth e rla n d s, B e lg iu m , an d L u x e m b o u rg , their a tten tio n is red irected a lm o st im m ed ia te ly to th eir o w n ex p o r t sa les. In terest is e sp e c ia lly k een b eca u se D istr ic t farm ers h a v e b e e n in crea sin g th eir ex p o rts, p articularly o f c o tto n and p o u ltry p ro d u cts, to th e C o m m o n M a rk et sin c e 1 9 5 8 . A s farm ex p o rts to m em b er n a tio n s in th e C o m m o n M a rk et in crea sed , D istrict farm ers b e c a m e m o re d e p en d e n t u p o n th em . C o n c o m ita n tly , c a m e th e r ea liza tio n th at a d e c lin e in fa rm ex p o rts to th a t m a rk et w o u ld b e p o te n tia lly d a m a g in g to th e D istr ict’s fa rm e c o n o m y . D u tie s recen tly im p o se d o n b roilers b y C o m m o n M a rk et a u th orities an d cu rren t d is c u ssio n s a b o u t th e p o ssib ility o f a d d itio n a l d u ties o n rice an d o th er farm p ro d u cts, th erefo re, h a v e sp u rred farm ers an d th o se d ep e n d en t u p o n fa rm a ctiv ity an d p ro sp erity to b e c o n c e r n e d a b o u t th eir fu tu re. T h is co n c e rn is also sh ared b y th o se en g a g e d in sh ip p in g an d o th er pu rsu its c o n n e c te d w ith farm ex p o rts. The C o m m o n M a rk e t a n Econom ic U n io n S % jS fa fe r a s e m H m ta f T h e C o m m o n M a rk et c a m e in to b e in g w ith th e sig n in g o f th e T reaty o f R o m e in 1 9 5 7 . F u n d a m en ta lly , th e six m em b er n a tio n s u n ited to a ch iev e th e e c o n o m ic g o a ls o f in crea sin g th eir in tern a l m ark ets and th eir p ro d u ctiv ity . T o attain th ese g o a ls, th e y p la n to a b o lish restrictio n s o n in tern a l m o v e m e n ts o f g o o d s, c a p ita l, serv ices, an d w o rk ers. In tern al trad e barriers w ill b e lo w e r e d in fo u r-y ea r step s, an d th e fin al a ct o f th e d ram a is sch ed u led fo r D e c e m b e r 1 9 6 9 . In ad d itio n , ex tern a l trad e and tariff p o lic ie s b in d in g u p o n e a ch m em b er n a tio n are b e in g fo rm ed . U lti m a tely , free trad e a m o n g m em b er n a tio n s and a sin g le p o lic y o n im p orts w ill b e a ch iev ed . A lth o u g h th e C o m m o n M a rk et n a tio n s are rela tiv ely sm a ll g e o g ra p h ica lly — co v er in g 4 5 0 ,0 0 0 sq u are m ile s, c o m p a r e d w ith 3 0 7 ,0 0 0 fo r the D istrict sta tes an d 3 ,6 1 5 ,2 1 1 fo r th e U n ite d S tates— th ey p a c k a p o w - erfu l e c o n o m ic p u n ch . T h ere w ere a b o u t 1 7 0 m illio n p e o p le in th e C o m m o n M a rk et c o u n tries in 1 9 6 0 an d a p p ro x im a tely 1 8 0 m illio n in th e U n ite d S tates. T h e G ro ss N a tio n a l P ro d u ct fo r th e C o m m o n M a rk et th a t year to ta led a b o u t $ 1 8 1 b illion ; it w a s $ 5 0 5 b illio n h ere. C o m m o n M a rk et o u tp u t in 1 9 6 2 , h o w e v e r , w a s ex p a n d in g at a b o u t 6 p ercen t p er y ear, as m ea su r ed b y in d u stria l p ro d u ctio n , co m p a red w ith a b o u t 4 p e r c en t fo r th e U . S. econ om y. A C o m m o n A gric u ltu ra l P olicy for the S ix A g ricu ltu re h as b e e n a ssig n ed a cen tra l r o le in E u r o p e a n e c o n o m ic a d ju stm en ts by the C o m m o n M a r k e t’s e c o n o m ic p lan ners. In E u ro p e, th e b a sic em p h a sis is u p o n m a x im u m self-su fficien cy in farm p r o d u ctio n . T h is b ro a d p o lic y g o a l w o u ld ten d to a llev ia te sh o rta g es o f fa rm p ro d u cts e x p e r ien ced in fo rm er years an d g iv e th e w id e st p o ss ib le sc o p e to p ro d u ctio n and e c o n o m ic gro w th o f th e fa rm e c o n o m ie s o f m em b er n a tio n s. T h e se aim s find e x p re ssio n in the C o m m o n A g ricu ltu ra l P o lic y . In its b ro a d est term s, th e C o m m o n A g ricu ltu ra l P o lic y ca lls u p o n e a ch m em b er n a tio n to m o d e r n iz e its agricu l tural e c o n o m y . T h e n u m e r o u s sm a ll fa rm s— n in e m illio n in all— m u st be co n so lid a te d to a c h ie v e th e e c o n o m ie s a sso cia ted w ith la rg er-sca le o p era tio n s. In th is p r o ce ss, farm ers w h o ca n n o t p rofitab ly en la rg e their u n its w ill b e a b sorb ed in to th e gen era l la b o r fo r c e and, it is h o p e d , u tilized in th e b u rgeon in g n o n fa rm e c o n o m y . T h is h a s, o f c o u rse, a fam iliar ring to u s, sin ce it is stressed in th e U . S. as a p artial so lu tio n to ou r “fa rm p r o b le m .” A lo n g w ith farm en la rg em en t, th e C o m m o n M a rk et is b en t u p o n m e ch a n izin g its farm s and a p p ly in g m u c h m o re w id e ly the farm tec h n o lo g y that is ta k en fo r gran ted in th is cou n try. A t th e o u tset, th e au th o rities in ten d to u se th e w e llk n o w n d e v ic e o f p rice su p p o rts to a c h iev e greater selfsu fficien cy in farm ou tp u t, as w e ll as to adjust agricultural p ro d u ctio n w ith in th e C o m m o n M a rk et. T h e im m ed ia te g o a l o f this p o lic y is a g reem en t u p o n u n ifo rm su p p ort p rices fo r th e six n a tio n s. In itia l step s to carry o u t th is p o licy are a n ticip ated this year, an d th e p o lic y is e x p e c te d to b e fu lly im p lem en ted by 1 9 7 0 , if n o t so o n er. A t p resen t, d iscu ssio n s in E u r o p e are cen terin g o n a sin g le su p p ort p rice fo r w h ea t. If this su p p o rt p rice is set lo w er th an th e recen t W est G erm a n su p p o rt p rice o f ab o u t $ 3 .0 0 p er b u sh el b u t h igh er th an th e cu rren t F r en ch su p p ort p rice o f a b o u t $ 2 .1 5 p er b u sh el, F ren ch farm ers w o u ld b e en co u ra g ed to e x p a n d w h e a t a crea g e an d ap p ly m o re te c h n o lo g y to its p r o d u ctio n . G erm a n g row ers w o u ld ten d to red u ce o u tp u t and d ivert so m e reso u rces to step -u p farm p ro d u ctio n fo r w h ich th ey h a v e a c o m p e titiv e a d v a n tage. M ea n w h ile, w h e a t fro m ab road , a v a ila b le at p er h a p s $ 2 .0 0 p er b u sh el, w o u ld n o t b e a c c e p te d b y a m e m b er n a tio n at a p rice b e lo w th at r ec e iv e d b y th e E u r o p ea n farm er. A n im p o rt le v y , w h ic h w o u ld b e step p e d u p or d o w n to b rin g ex tern a l an d in tern a l p rices in lin e, w o u ld b e p la c e d u p o n th e im p o rted w h ea t. T h is w o u ld lik ely h a v e ad verse effects o n w h e a t ex p o r tin g n a tio n s. T h e E u ro p ea n su p p o rt p rice fo r w h e a t w ill h a v e fa r-rea ch in g im p lica tio n s, fo r it w ill affect th e p rice stru ctu re fo r o th er grains and, u ltim a tely , fo r liv e sto c k and p o u ltry p ro d u cts. F a rm p rice p o lic ie s in a so m e w h a t d ifferen t g u ise w ill b e in effect for certain fa rm p ro d u cts. P o u ltry m ea t is a c a se in p o in t. P r o d u c e rs in E u r o p e w ill b e p r o tected b y a m in im u m im p o r t o r “g a te ” p rice, in a d d itio n to th e va ri a b le im p o rt le v ie s o n th e im p o rts. T h is en try p rice, an n o u n c e d in 1 9 6 2 as 3 3 .3 4 c e n ts p er p o u n d in th e p o rt o f en try fo r r e a d y -to -c o o k p o u ltry , is h ig h er th a n th is c o u n try’s c o sts o f p r o d u c tio n an d d eliv e r y to E u r o p e . Im p o rt d u ties o n p o u ltry w er e ra ised fro m 4 y2 c e n ts a p o u n d in 1 9 6 1 to 1 2 % c e n ts a p o u n d o n J u ly 3 0 , 1 9 6 2 . T h e se d u ties, o f c o u r se, p r o te c t p ro d u cers in th e C o m m o n M ar k et n a tio n s an d p la c e th em in a p o sitio n to c a p ita lize o n a g ro w in g in tern a l m a rk et fo r p o u ltry m ea t. T h e restric tio n s, h o w e v er , are a th rea t to o u r p o u ltry in d u stry, w h ich finds itse lf p r ice d o u t o f th e m ark et. O u r Farm E xp orts to the C o m m o n M a rk e t O v era ll, th e C o m m o n M a rk et, a p r o sp e r o u s in d u strial unit, is n o w a p rim e o u tle t fo r U . S. fa rm p ro d u cts. A m e r ica n fa rm ers n u m b er W est G erm a n y , th e N eth e r la n d s, and Ita ly a m o n g th eir la rg est C o m m o n M a rk et cu sto m ers. T h e se c o u n tries r e c e iv e 8 0 p e r c en t o f U . S. sh ip m en ts; F ra n ce , B e lg iu m , a n d L u x e m b o u r g , 2 0 p ercen t. W h en th e se n a tio n a l ex p o r t figu res are r ela ted to D istr ict states, w e see th at farm ers in th e se sta tes su p p lie d a b o u t 1 2 p e r c e n t o f to ta l fa rm ex p o rts fro m th e U . S. in fisca l y ea r 1 9 6 1 . E x p o r ts fr o m D istr ic t sta tes b u lk larger, h o w ev er, w h e n th ey are r ela ted to th e to ta l a m o u n t so ld or h a rv ested b y farm ers. In 1 9 6 1 , D istr ict fa rm ers e x p o r te d 2 0 p ercen t o f their to ta l sa les or h a rv ests. T h e p r o p o r tio n fo r field Farm Export Equivalent as a Proportion of Amount Sold or Harvested Sixth District States Fiscal Y e a r 1960-61 C om m odity Group F ie ld C r o p s 1 ( E x c l. V e g e t a b le s , F r u it s a n d N u ts ) V e g e t a b le s 1 F r u it s a n d N u t s 1 T o t a l L iv e s t o c k a n d P ro d u cts D a ir y P o u ltr y O th e r T o t a l A g r ic u lt u r a l P ro d u cts Value of C om m odity Sold or H arvested as Shown in the 1959 Census E xport E quivalent ( $ 0 0 0 ,0 0 0 ) ( $ 0 0 0 ,0 0 0 ) Export Equivalent as a Percent of A m ount Sold or H arvested 1 ,2 1 4 102 357 459 12 70 38 12 20 1 ,2 8 4 269 404 611 47 9 16 22 4 3 4 4 2 ,9 5 7 588 20 1 Includes products and preparations. Source: United States Department of Commerce. cro p e x p o r ts— c o tto n , so y b e a n s, to b a c c o , an d rice— w a s 3 8 p ercen t. E x p o r ts o f fru its, p r in cip a lly citru s fru its and p ro d u cts, a c c o u n te d fo r 2 0 p er c e n t o f th e to ta l; v e g e ta b le s, 12 p ercen t; an d p o u ltry , 4 p ercen t. A lth o u g h n o t all fa rm e x p o r t item s to th e C o m m o n M a rk et are e q u a lly im p o rta n t, th e sa le s tren d s fo r so m e less im p o rta n t item s h a v e c o n sid e ra b le lo c a l im p a ct. P o u l try p ro d u cts, rice, fru its, an d v e g e ta b le s c o m e rea d ily to m in d . T h e se item s h a v e b e e n p u rch a se d in in crea sin g v o lu m e b y n a tio n s in th e C o m m o n M a rk et, e sp e c ia lly b y W est G erm a n y and th e N e th e r la n d s, sin ce 1 9 5 5 . W h ile o n ly 2 p e r ce n t o f o u r b ro iler p ro d u c tio n w e n t to th e C o m . 2 • m o n M ark et in 1 9 6 2 , a su d d en sh rin k age in sa les c o u ld d a m p en m ark et p rices here. S o m e P ressure o n Fa rm ers L ike ly W h ere w ill A m erica n farm ers, p a rticu larly th o se in th e S ix th D istrict, stand as th e C o m m o n A g ricu ltu ra l P o lic y b e c o m e s o p era tiv e and E u r o p e a n n a tio n s b e c o m e m o re self-su fficien t? T a k in g an o v era ll v iew , th e im p a c t o n this r a tio n ’s fa rm ex p o rts c o u ld b e m o d e st d u rin g th e n e x t year or so. F o rtu n a tely , E u ro p ea n s w ill req u ire so m e tim e to pu t th eir C o m m o n A g ricu ltu ra l P o lic y in to fu ll o p era tio n . M ea n w h ile, their h o p e d -fo r resu lts m a y n o t b e a c h iev ed rap idly. F arm ers h ere p ro b a b ly w o u ld b e u n rea listic, h o w ev er, to e x p e c t an yth in g b u t a g en era lly restrictiv e p o lic y against certain farm ex p o rts fo r sev era l years. C o n sid erin g this n a tio n ’s to ta l fa rm ex p o r t trad e w ith th e C o m m o n M a rk et, a p o ssib le lo ss in e x p o rts m a y h a v e to b e b o rn e p rin cip a lly b y A m e r ic a n w h e a t grow ers. E v e n h ere, h o w ev er, th e o u tc o m e is u n certa in b e c a u se m u ch d ep en d s u p o n th e in tern al p rice set fo r w h e a t in E u ro p e. W h eth er E u ro p ea n farm ers w ill b e ab le to q u ick ly satisfy lo c a l n e e d s and w h eth er o th er n a tio n s th at c o u ld su p p ly w h ea t b e c o m e fu ll o r a sso c ia te m em b ers o f th e C o m m o n M a rk et are also im p o rta n t fa cto rs. F in a lly , th e C o m m o n M a rk et’s im p a ct o n w h ea t grow ers h in g es to so m e e x ten t u p o n this n a tio n ’s agricultu ral p rice p o lic ie s. T h e im p o rta n t S ixth D istrict farm p ro d u cts ex p o r te d to th e C o m m o n M a rk et are c o tto n , o ilse e d s, an d to b a c c o . Farm Product Export Equivalent, Major Commodity Groups Fiscal Y e a r 1960-61 C om m odity Group Ala. Fla. Ga. La. Miss. Six United Tenn. States States (P ercent o f T otals) F ie ld C r o p s 1 ( E x c l. V e g e t a b le s , F r u it s a n d N u ts ) 87 V e g e t a b le s 1 1 F r u it s a n d N u t s 1 1 P o u ltr y 5 O t h e r L iv e s t o c k a n d P ro d u cts 6 T o ta l T o ta l A m o u n t E x p o rte d ( $ 0 0 0 ,0 0 0 ) 21 10 63 1 84 1 3 6 94 1 1 93 * 1 2 90 1 1 1 78 2 12 3 80 2 6 2 5 6 4 4 7 5 10 100 100 100 100 100 100 100 100 72 101 103 82 137 93 588 4 ,9 0 0 1 Includes products and preparations. * Less than 0.5 percent. N ote: The export equivalents show the state’s proportionate share of national agricultural exports and do not necessarily mean that the commodities shown were actually exported. They do reflect, however, the contribution of the state to total national trade. Source: United States Department of Commerce. B e c a u se th ese p rod u cts are n o t p r o d u ce d in an y q u an tity, if at all, in th e C o m m o n M a rk et, D istrict grow ers sh o u ld c o n tin u e to en jo y ex p o rt sa les to th e se co u n tries. C o tto n ca n n o w en ter th e C o m m o n M a rk et d u ty free. T h u s, ou r fu tu re co tto n trad e w ith th e C o m m o n M a rk et n a tio n s w ill h in g e m o re u p o n ou r farm p o lic ie s th an u p o n th eir p o li c ies. O ilseed s, su ch as so y b ea n s and o il m e a ls, a lso en ter C o m m o n M a rk et ports d u ty free. U n d e r p resen t co n d itio n s o f d em a n d and su p p ly, farm ers h ere c o u ld w ell ex p e r ie n c e in crea sed sa les o f th ese item s, a cco rd in g to th e U n ited S tates D ep a rtm en t o f A gricu ltu re. T o b a c c o sa le s to th e C o m m o n M a rk et are m o r e p ro b le m a tic a l b e c a u se th e C o m m o n A g ricu ltu ra l P o lic y and p o ssib le le v ie s o n im p o rted to b a c c o h a v e n o t b e e n p u t in fo rc e . If th ey sh o u ld b e so m e w h a t restrictiv e b e c a u se o f F r en c h and Ita lia n attitu d es, D istric t to b a c c o ex p o rts m ay b e crim p ed . H o w e v e r , D istr ic t p ro d u cers m ig h t b e ab le to in crea se th eir ex p o rts to o th er E u r o p e a n n a tio n s and thus a v o id m a k in g an y im m ed ia te a d ju stm en t to a lo s s o f e x p o rt sa les to th e C o m m o n M ark et. F o r th e D istr ic t’s farm e c o n o m y , sh rin k in g p o u ltry sales to C o m m o n M a rk et co u n tries is a tr o u b le so m e ex p o rt p ro b lem . T h e E u r o p ea n p o lic y fo r b ro ilers h a s alread y ca u se d a d e clin e in b ro iler ex p o rts to th e se n a tio n s, and fu rther d e clin e s c o u ld o ccu r. E x p o r ts, o f co u rse , m a y b e r ea so n a b ly w e ll m a in ta in ed if farm ers in E u r o p e ca n n o t su p p ly co n su m e r d em a n d fo r b roilers. H o w e v e r , th e b roiler in d u stry in this n a tio n p ro b a b ly w ill e x p er ie n c e , at lea st tem p orarily, a d ec lin e in ex p o rts to th e C o m m o n M ark et. T h e in d u stry m a y o ffset sa les lo ss th ere, h o w ev e r, w ith in crea sed sa les to o th er n a tio n s in E u r o p e an d e lsew h ere in th e w orld . T a k in g a lo n g er-ra n g e v ie w , farm p ro d u ct ex p o rts from b o th th e n a tio n and th e D istrict c o u ld a ctu a lly in crea se to th e C o m m o n M a rk et. A s E u r o p e a n e c o n o m ie s b e c o m e m o re p ro d u ctiv e, co n su m ers w ill g ain sp en d in g p o w er, and th eir d em a n d s fo r fo o d , c lo th in g , and o th er c o n su m er g o o d s w ill in crea se. T h e se d em a n d s c o u ld c a u se C o m m o n M a rk et trad e n eg o tia to rs to u ltim a tely a d o p t m o re lib eral trad in g p o lic ie s fo r farm p ro d u cts, a lth o u g h th e E u ro p ea n farm p o p u la tio n m igh t n o t a cq u ie sc e rea d ily to su ch p o li cies. T h is resista n ce is reflected in cu rren t C o m m o n M a r k et d isc u ssio n s w ith resp ect to th e su p p o rt p rice fo r w h ea t, w h ich m a y b e se t m o re for p o litic a l th an fo r e c o n o m ic rea so n s. N e v e r th e le ss, th ere is ro o m fo r m a n eu v er, e sp ecia lly w ith th e p o w ers gran ted b y C o n g ress in th e T ra d e E x p a n sio n A c t o f 1 9 6 2 . T h is A c t g iv e s th e P re sid e n t auth ority to b argain an d n e g o tia te to o b ta in sim u lta n e o u s c o n c e s sio n s fo r a la rg e ran ge o f item s. U n til n e g o tia tio n s are c o m p le te d , th e v o lu m e o f b o th n a tio n a l an d D istrict e x ports to C o m m o n M a rk et co u n tries, w h ich n o w ta k e o n e third o f o u r farm e x p o r t sa les fo r d o lla rs, w ill b e u n cer tain. S a les to o th er fre e -w o r ld n a tio n s o u tsid e th e E u ro p ea n E c o n o m ic C o m m u n ity , h o w e v e r , m a y offer farm ers so m e c o n so la tio n . A r t h u r H. K a n t n e r FEDERAL RESERVE OPEN MARKET OPERATIONS IN 1962 This report, originally published in the April 1963 issue of the F ed era l Reserve Bulletin, describes the open market operations of the Federal Reserve System, as they took p lace against the background of b road system policy objectives on one side and money and cap ital market developments on the other. It sup plements the 1962 A nnual Report of the Board of G overnors of the Federal Reserve System, which traced the developm ent of O pen M arket Committee policy during the y e a r. Reprints of this report may be obtained from the Division of Administrative Services, Board of Governors of the Federal Reserve System, W ashington 25, D. C ., a n d , in limited quantities, from the Research Department, Federal Reserve Bank of A tlan ta, Atlanta 3, G e o rg ia . • 3 • Good Growth Marks Georgia’s Economy in ’62 In a gen era l clim a te o f sh arp c h a n g e s in th e n a tio n a l fin a n cial m ark ets, su b stan tia l c o ld -w a r sh o c k s, and h ig h le v e l e c o n o m ic p la tea u m a n sh ip , G e o r g ia ’s d iv ersified e c o n o m y fo rg ed stron gly a h ea d in 1 9 6 2 . T h is su rv ey m e a s u res recen t p rogress in th e tw o m a jo r areas o f p erso n a l in c o m e and e m p lo y m en t. F o llo w in g th is rev ie w , a lo o k at lo n g -term in c o m e an d em p lo y m e n t tren d s w ill p r o v id e a b a sis fo r ev a lu a tin g th e sta y in g p o w e r o f th e se gain s. Personal Income G e o r g ia ’s to ta l p er so n a l in c o m e in cr e a sed a b o u t $ 4 5 0 m illio n d u rin g 1 9 6 2 , a c co rd in g to p relim in ary estim a tes o f th is B a n k . T h is rep resen ted a lm o st o n e-th ird o f th e to ta l g ain reg istered b y th e six sta tes in c lu d ed in th e S ixth F e d e r a l R e se r v e D istrict. L o o k in g at a n n u al rates o f g ain fo r se a so n a lly ad ju sted in c o m e , it a p p ears th at G eo r g ia ’s g ro w th o f m o r e th a n 7 p ercen t th rou gh D e c e m b e r set th e p a c e w ith in th e D istrict. A c o m b in a tio n o f fa cto rs, in c lu d in g u n u su a lly sev ere w eath er, ca u sed G e o r g ia ’s e c o n o m y to slo w d o w n so m e w h at in D e c e m b e r , as d id th a t o f th e D istr ict as a w h o le . H o w e v e r , p relim in ary e stim a te s in d ica te th a t G e o r g ia ’s r eb o u n d w a s v ig o ro u s, th o u g h still h a m p e re d b y w ea th er an d th e effects o f th e E a st C o a st d o c k strike. T o ta l p e r so n a l in c o m e , se a so n a lly a d ju sted a n n u al rate, sp u rted in J an u ary a lm o st $ 1 7 0 m illio n , a g ain o f 2 .3 p e rcen t o v er D e c e m b e r ’s retard ed rate. In c o m p a riso n , th e D istr ic t’s e c o n o m y reco rd ed a le ss im p r essiv e g a in , 1 .8 p ercen t. L o o k in g further b a ck , it w a s p o in te d o u t w h e n G e o r g ia ’s e c o n o m y w a s la st rev ie w ed ( M onthly Review, A p r il 1 9 6 2 ) th at G eo rg ia r eco v ered rather slo w ly fro m th e rec e ssio n trou gh o f F eb ru a ry 1 9 6 1 . In fa ct, G eo r g ia ’s r e c essio n , as m ea su red b y m a n u fa ctu rin g e m p lo y m e n t, d id n o t b o tto m o u t u n til M arch 1 9 6 1 , and it w a s n o t u n til M a y th at n o n m a n u factu rin g and to ta l n o n fa rm em p lo y m e n t h it their lo w p o in ts. T o ta l p e rso n a l in c o m e g a in ed slo w ly th rou gh M a rch o f 1 9 6 1 , b u t th en slu m p e d sh arp ly. F r o m m id 1 9 6 1 to y ea r-en d , h o w ev er, all fo u r in d ic e s reflected stea d y and v ig o ro u s gain s. T h u s, th e in crea se in p e r so n a l in co m e fo r 1 9 6 2 w a s a c h iev ed fro m a y ea r-en d 1 9 6 1 b a se , w h ich h a d risen a lm o st 7 p ercen t fr o m th e en d o f 1 9 6 0 . F ro m Janu ary 1 9 6 2 th rou gh Jan u ary 1 9 6 3 , p erso n a l in c o m e in G e o rg ia c lim b ed stea d ily w ith o n ly sligh t an d tem p o ra ry in terru p tion s. A n a ly sis o f in c o m e ch a n g e s sh o w s th at stren gth in th ese a g gregate gain s h a s n o t b e e n reflected in p er c a p ita in c o m e grow th . A s in d ica ted in th e ta b le, G e o r g ia ’s rate o f COMPARATIVE PER CAPITA INCOME CHANGES G e o r g ia D is t r ic t S ta te s U n it e d S ta te s G e o r g ia D is t r ic t S ta te s U n it e d S ta te s 1957 1958 1 ,4 1 8 1 ,4 6 5 2 ,0 5 2 1 ,4 6 9 1 ,5 0 5 2 ,0 6 9 1958 from 1957 1959 from 1958 3 .6 2 .7 0 .8 6 .1 5 .4 4 .8 1959 1960 (D ollars) 1 ,5 5 8 1 ,5 8 7 2 ,1 6 8 1 ,6 1 0 1 ,6 1 2 2 ,2 1 8 1961 1962 1 ,6 4 9 1 ,6 4 7 2 ,2 6 6 1 ,7 1 4 1 ,7 0 8 2 ,3 5 7 (P ercent C hange) 1960 1961 from from 1959 1960 3 .3 1 .6 2 .3 2 .4 2 .2 2 .2 1962 from 1961 3 .9 3 .7 4 .1 per c a p ita in c o m e gro w th , w h e n m ea su r e d ag a in st th e n a tio n a l a verage, h a s b e e n slo w in g p e rcep tib ly . M o reo v er, in sp ite o f a fiv e-y ea r g ro w th o f 2 1 p erce n t, c o m p a red w ith 15 p e rcen t fo r th e n a tio n , th e a v era g e G e o rg ia n still re c e iv e s o n ly 7 3 p e rcen t o f th e n a tio n a l a verage. Em ploym ent and Production M easures U n d er ly in g th ese g row th tren d s in to ta l p e r so n a l in c o m e , o f c o u r se , are so lid g a in s in em p lo y m e n t an d p r o d u c tio n m e a su res. G eo r g ia ’s to ta l n o n fa rm e m p lo y m e n t, o n w h ic h la ter d a ta are a v a il ab le, ro se in F eb ru a ry to 111 p e r c en t o f th e 1 9 5 7 -5 9 in d ex b a se. T h is c o m p a r e s w ith an in d e x o f 1 0 7 for F eb ru a ry 1 9 6 2 . O n th e o th er h a n d , m a n u fa ctu rin g e m p lo y m e n t, after rem a in in g o n a p la te a u fr o m D e c e m b e r th ro u g h F eb ru ary, rose o n ly slig h tly to 1 0 7 .1 in M a rch . E v e n so , fo r th e 12 m o n th s en d in g in M a rch , th is in d e x ro se 2 .5 p ercen t, but fe ll so m e w h a t sh o rt o f th e 2 .6 p e r c e n t in cr e a se fo r th e D istrict states. G e o r g ia ’s star p erfo rm er in e m p lo y m e n t fo r th e p ast 12 m o n th s h a s b ee n n o n m a n u fa c tu rin g e m p lo y m e n t. P a ced b y b u o y a n t c o n stru ctio n , serv ice , an d state an d F ed era l g o v er n m e n t e m p lo y m e n t an d su sta in e d b y g o o d rates o f a ctiv ity in trad e, fin a n ce, in su ra n ce, an d real esta te, th is typ e o f e m p lo y m e n t r o se 4 .5 p e r c e n t fo r th e y ea r en d in g in M a rch 1 9 6 3 . A s w a s also tru e o f th e D istr ict, farm e m p lo y m e n t w as G e o r g ia ’s w e a k e st e m p lo y m e n t in d e x fo r th e p a st year. T h is in d e x m o v e d d o w n fro m 7 9 to 7 5 , a d e c lin e o f n early 16 p ercen t. R e d u c tio n s in a crea g e an d y ie ld s fo r so m e ty p es o f c ro p s co n tr ib u te d to G e o r g ia ’s d e c lin e an d m ore th an o ffse t g a in s in liv e sto c k an d p o u ltry a ctiv ities. A v e r a g e w e e k ly h o u rs in m a n u fa ctu rin g in G e o rg ia rose to 4 0 .2 in M a rch , c o n tin u in g th e tren d o f Ja n u ary and F eb ru a ry g ain s. T h is w a s so m e w h a t b e lo w th e M a rch le v e l o f 4 0 .7 fo r th e D istr ict. In su r e d u n e m p lo y m e n t c o n tin u ed to d e c lin e , rea c h in g a le v e l o f 3 .0 p er c e n t o f c o v e r e d e m p lo y e e s in M a rch . T h is w a s su b sta n tia lly b e lo w th e le v e ls o f J an u ary an d F eb ru a ry and c o m p a r es w ith th e D istr ic t’s rate o f 4 .0 p er c e n t fo r M a rch . Will It Last? G e o r g ia ’s e c o n o m y h a s c h a n g e d co n sid era b ly in th e p o stw a r p erio d , as is sh o w n b y th e ch a rt tra cin g e m p lo y m e n t in d ic es. W h ile to ta l n o n a g ricu ltu ra l e m p lo y m en t h a s b e h a v e d in a b o u t th e sa m e m a n n er as n a tio n a l cy clica l p attern s, its c y c le h a s b e e n d ecr e a sin g in sev erity . A t th e sa m e tim e, it is c le a r th a t a lth o u g h th e c y c lic a l p attern in m a n u fa ctu rin g e m p lo y m e n t c o n tin u e s to b e th e m o s t p r o n o u n c ed o f th e th ree in d ice s, it, to o , h a s sh o w n le ss e x trem e sw in g s in su c c e e d in g c y c le s. M o re o v e r , e a c h p o s t w ar lo w p o in t h a s h e ld at su c c e s siv e ly h ig h er le v e ls. It is n o t to b e in ferred fro m th e c h a n g e d b e h a v io r o f th ese e m p lo y m e n t in d ic e s th a t m a n u fa ctu rin g em p lo y m en t is an y le ss im p o rta n t in G e o r g ia ’s to ta l e c o n o m y . In fa ct, this ca te g o ry n o w c o n trib u tes a lm o st o n e -fifth o f to ta l p e r so n a l in c o m e , c o m p a re d w ith a ra tio o f a b o u t 1 6 p ercen t fo r th e a v era g e o f th e six D istr ic t sta tes. M o r e o v e r , th e q u a lita tiv e im p r o v em e n t o f “ a r e a -b u ild in g ” in c o m e from this so u rc e , in sp ite o f c o n tin u in g c y c lic a l sw in g s, m a y b e in ferred fr o m th e b e h a v io r o f n o n m a n u fa c tu r in g e m p lo y • 4 • m en t. A s th e ch art sh o w s, stron g rec o v e ry in m a n u fa ctu r in g e m p lo y m en t in e a c h su c c e e d in g c y c le h a s b e e n a c c o m p a n ied b y grow th in n o n m a n u fa ctu rin g em p lo y m e n t o f eq u a l r ec o v ery strength and o f e n h a n c ed sta y in g p o w er. P art o f th is ch a n g ed pattern is n o d o u b t attrib u tab le to g row th in trad e, fin an cial, and serv ice fu n ctio n s in th e reg io n . S tron g grow th in m a n u factu rin g e m p lo y m e n t w ith in th e state, h o w e v er, h a s su p p o rted su b sta n tia l in tra -sta te n o n m a n u factu rin g an d serv ice em p lo y m e n t. H o w d o e s G eo r g ia ’s m o re rece n t p e rfo rm a n ce affect the im m ed ia te o u tlo o k ? D o th e se ga in s, in clu d in g lo n g term o n e s, im p ly co n tin u ed an d p erh a p s in cr e a sed grow th fro m co n tin u in g diversificatio n ? Q u ite apart fr o m n o n q u an tifiab le an d lo n g er-term p o litic a l an d so c ia l fa cto rs th at in flu en ce grow th , it is clea r th at an y o n e sta te ’s e c o n o m ic h ea lth d ep en d s la rg ely o n n a tio n a l an d reg io n al trends. N e v e r th e le ss, an alysis o f c o m p a ra tiv e p erfo rm a n ce in tra -region ally in d ica tes th at G eo rg ia h a s h a d an e x c e p tio n a lly fa v o ra b le c o m b in a tio n o f e m p lo y m e n t so u rces in the recen t p ast. T h is an alysis, sh o w n in th e ch art co m p a rin g 13 c o m p o n en ts o f in c o m e so u rce, is b a sed u p o n p relim in a ry e sti m a tes b y this B a n k fo r p e r so n a l in c o m e in 1 9 6 2 . A s sh o w n in th e chart, G eo r g ia h a d th ree c o m p o n e n ts o f in c o m e so u rce th at w ere in d iv id u a lly w ea k er, y ea r -to year, th an th ey w ere in th e D istr ict as a w h o le. E a c h o f th e se , h o w e v e r , a cco u n ted fo r a sm a ller sh are o f G eo r g ia ’s to ta l p erso n a l in c o m e th an o f D istrict in co m e . M o reo v er, ta k en as a grou p , th eir total co n trib u tio n w a s actu a lly less retarded th an it w a s in th e D istrict. In tw o im p o rta n t co m p o n e n ts o f in c o m e so u r c e, G e o r g ia fa red a b o u t th e sam e as th e D istrict. E ig h t c o m p o n e n ts, h o w e v er, e x c e e d e d th eir D istric t co u n terp a rts and a cco u n te d fo r m o re th an sev en -ten th s o f to ta l in c o m e , co m p a r e d w ith slig h tly less th an tw o-th ird s fo r th e D istr ic t sta tes. A s in d i ca ted , the c o m p o site rate o f in crea se in th is grou p w a s a lm o st 9 p ercen t, v ersu s 7 p ercen t fo r all six states. R e c e n t e c o n o m ic d ata in d ica te a stren g th en in g u n d er ly in g curren t in th e n a tio n ’s e c o n o m y , w h ic h is m ark ed b y signs o f b ro a d en in g in v e stm e n t sp en d in g , as w e ll as c o n tin u in g stren gth in th e co n su m er secto r. I f th e se tren d s Components of Income, by Source G eorgia and Sixth District States, 1962 Percent of Total Income Percent Change 1962 from 1961 p ersist, it se e m s rea so n a b le to e x p e c t th at G e o r g ia w ill co n tin u e to sh o w v ig o ro u s grow th in th e m o n th s ah ead . W h eth er th e e c o n o m ic m ix w ill b e e q u a lly fa v o r a b le in th e m o re d ista n t fu tu re ca n n o t b e fo r e se en . O n th e oth er h a n d , it is e v id e n t th at th e c o n tin u a l u p g ra d in g and diver sifica tio n o f e m p lo y m e n t so u rces h a s g rea tly b en efited G e o r g ia ’s ec o n o m y . In d e e d , p arap h rasin g a lin e fr o m the e v er-p o p u la r m u sic a l, “S o u th P a c ific ,” G e o r g ia ’s e c o n o m y is, at p resen t, b ro a d w h ere an e c o n o m y sh o u ld b e b road. H i r a m J. H o n e a This is one of a series in which economic developments in each of the Sixth District states are discussed. Develop ments in Alabama’s economy were analyzed in the April R e v i e w , and a discussion of Mississippi’s economy is scheduled for a forthcoming issue. • 5 • Bank Announcements Debits to Individual Demand Deposit Accounts On April 1, the Lim estone County Bank, Athens, A la bama, a state member, converted into a national bank ing association under the title of the First National Bank of Athens. Officers include W. Van Gilbert, Chairman of the Board; Allen Beasley, President; John J. Huber, Vice President and Cashier; and James E. Horton, Vice President. Capital is $200,000, and sur plus and other capital funds, $639,719, as reported by the Comptroller of Currency at the time the conversion was approved. The Harbor State Bank, Safety Harbor, Florida, a recently organized nonmember bank, began to remit at par on A pril 1 for checks drawn on it when received from the Federal Reserve Bank. Officers are A . B. Edwards, Jr., President; and Charles M . Davis, Vice President and Cashier. Capital is $150,000, and surplus and undivided profits, $75,000. Also on April 1, The Bank of Inverness, Inverness, Florida, a nonmember bank, began to remit at par. The Hendry County Bank, La Belle, Florida, a newly organized nonmember bank, opened for business and began to remit at par on April 23. Officers include K. J. Curtis, President; and W. E. Dickson, Vice President and Cashier. Capital is $140,000, and surplus and un divided profits, $63,000. (In Thousands of Dollars) A REVIEW OF GEO RG IA'S ECONOMY, 1 9 6 0 -6 3 A compilation of articles devoted to G e o rg ia 's econom y that ap p e are d in this Bank's M onthly Review during 1960-63, to gether with revised monthly figures of major business indicators for G e o rg ia . The articles em phasize various aspects of G e o r g ia's econom ic scene and often consider longer-run develop ments. Copies a re a v a ila b le upon request to the Research Departm ent, Federal Reserve Bank of A tlan ta, A tlan ta 3, G e o rg ia . Department Store Sales and Inventories* Mar. Feb. 1963 +48 +53 +51 +38 +23 +24 +37 +23 +16 ______ Percent Change______________ Sales Inventories 1963 from Mar. 31,1963 from 3 Months Mar. 1963 from Feb. 28, Mar. 31, 1962 1962 1963 1962 —3 —0 +2 +0 —2 —2 —2 —3 +4 +9 +3 +5 +18 +8 +2 +5 +12 +13 + 12 +28 +15 +2 +4 + 1 —7 — 13 rt.a. n.a. n.a. n.a. + 2 +3 +6 +6 + 10 +3 +3 +8 +4 +9 +8 +4 +7 +7 +8 +6 +5 +0 + 14 +6 +8 + 11 + 15 +8 +5 +2 + 24 + 10 —6 +8 +15 +8 +4 +4 —3 +5 +4 +4 —6 +6 +4 +6 —0 +16 +3 +5 Place ALABAMA .............................. . B irm ingh am .................... . M o b ile .............................. • M ontgom ery.................... . FLORIDA.............................. . Daytona Beach .................... . J a c k so n v ille .................... • Miami Area .................... . Miami ......................... . Orlando.............................. St. Petersburg-Tampa Area . + 1 8 GEORGIA.............................. . + 5 0 A tla n ta * * ......................... Augusta.............................. • + 5 5 M a c o n .............................. . + 5 3 Rome** .............................. . + 6 0 S a v a n n a h ......................... . + 4 0 LOUISIANA......................... . + 4 2 Baton R o u g e .................... . + 8 2 New O r le a n s .................... . + 3 4 MISSISSIPPI......................... . + 3 2 Jackson.............................. . + 3 6 TENNESSEE ......................... . + 4 8 Bristol-KinqsportJohnson City** . . . . +44 —3 +4 +5 —6 Bristol (Tenn. &Va.)** . . + 5 4 —8 —0 C hattanooga .................... +6 —3 K n o x v ille ......................... . + 4 3 —5 DISTRICT.............................. . + 3 6 +7 +6 +3 +9 ♦Reporting stores account for over 80 percent of total District department store sales. **In order to permit publication of figures for this city, a special sample has been constructed that is not confined exclusively to department stores. Figures for non department stores, however, are not used in computing the District percent changes. n,a. Not available. Insured Commercial Banks in the Sixth District Percent Change Year-to-date 3 Months March 1963 from iq &3 Feb. March from March 1963 1962 1962 1962 March 1963 Feb. 1963 2,585,821 43,886 953,071 41,459 37,924 93,136 309,852 214,624 28,690 63,033 2,385,967 40,103 877,561 37,504 36,502 87,270 300,016 182,163 24,891 61,628 2,424,710 43,762 901,171 40,430 35,201 77,205 303,902 184,685 26,340 60,896 +8 +9 +9 +11 +4 +7 +3 + 18 + 15 +2 +7 +0 +6 +3 +8 +21 +2 +16 +9 +4 +8 +5 +5 +5 +10 +21 +9 +14 +8 +10 FLORIDA, Totalf . . Bartow* . . . . Bradenton* . . . Brevard County* Clearwater* . . . Daytona Beach* Delray Beach* . . Ft. Lauderdale4 Ft. MyersNorth Ft. Myers* Gainesville4 . . . Jacksonville . . . Key West* . . . Lakeland* . . . Miami . . . . Greater Miami* Ocala* . . . . Orlando . . . . Pensacola . . . St. Augustine* . . St. Petersburg . . Sarasota* . . . Tallahassee* . . Tampa . . . . W. Palm-Palm Bch.* Winter Haven* . . 6,474,686 23,265f 46,643 119,003 73,716 65,973 25,167 238,787 6,148,800 22,396 44,233 110,149 76,394 59,431 23,307 216,332 5,833,674 n.a. n.a. n.a. n.a. 61,378 n.a. 236,187 +5 +4 +5 +8 —4 + 11 +8 + 10 +11 n.a. n.a. n.a. n.a. +7 n.a. + 1 +13 n.a. n.a. n.a. n.a. +8 n.a. +0 55,420 51,517 874,762 18,959 94,820 1,075,768 1,565,363 44,523 286,935 99,268 16,362 232,756 82,518 70,197 483,588 178,593 46,813 53,003 51,422 872,390 17,611 86,355 984,651 1,466,235 40,837 277,598 86,079 15,509 211,944 76,574 77,280 452,460 170,955 45,167 n.a. 46,767 915,967 18,768 90,806 1,053,109 1,544,082 n.a. 269,500 96,975 n.a. 244,173 n.a. 68,812 477,018 179,676 n.a. +5 +0 +0 +8 + 10 +9 +7 +9 +3 +15 +6 + 10 +8 —9 +7 +4 +4 n.a. +10 -—4 +1 +4 +2 +1 n.a. +6 +2 n.a. —5 n.a. +2 +1 —1 n.a. n.a. +10 —3 —3 +6 + 2 +2 n.a. +7 +7 n.a. —6 n.a. +6 +4 +1 n.a. GEORGIA, Totalf . Albany . . . . Athens* . . . . Atlanta . . . . Augusta . . . . Brunswick . . Columbus . . Dalton* . . . . Elberton . . . . Gainesville* . . Griffin* . . . . LaGrange* . . Macon . . . . Marietta* . . Newnan . . . . Rome* . . . . Savannah . . Valdosta . . . . 4,848,257 58,190 42,911 2,728,961 136,310 33,939 118,766 57,631 10,080 53,280 21,184 16,264 146,299 42,019 20,853 49,675 185,012 35,328 4,536,438 56,539 42,658 2,570,837 128,050 28,475 114,151 52,164 7,661 48,622 21,250 15,123 127,075 35,485 19,677 45,694 169,120 32,802 4,396,071 58,615 46,999 2,454,468 126,017 30,529 122,483 n.a. 8,843 52,502 21,851 18,614 137,150 38,604 22,608 50,062 182,506 35,310 +7 +3 +1 +6 + 6 +19 +4 +10 +32 + 10 +0 +8 +15 +18 +6 +9 +9 +8 +10 —1 —9 +11 +8 +11 —3 n.a. +14 +1 —3 — 13 +7 +9 —8 —1 +1 +0 +15 +2 —2 +19 +10 +9 +0 n.a. +13 +9 +6 —9 +7 +14 —5 +0 +4 +1 2,769,436 7,752 81,621 296,872 4,470 23,900 74,718 87,371 26,398 1,496,981 6,308 17,662 2,482,920 7,170 76,015 289,680 4,196 21,807 65,351 79,586 23,283 1,316,917 5,755 14,989 2,682,534 n.a. 77,132 289,039 n.a. n.a. 70,675 84,211 n.a. 1,537,390 n.a. n.a. +12 +8 +7 +2 +7 + 10 +14 +10 +13 +14 +10 +18 +3 n.a. +6 +3 n.a. n.a. +6 +4 n.a. —3 n.a. n.a. +8 n.a. +5 +5 n.a. n.a. +6 +2 n.a. +2 n.a. n.a. 882,235 66,817 38,320 362,000 27,480 46,506 26,354 839,608 60,548 35,754 336,799 24,991 60,236 25,701 799,445 59,099 41,428 358,914 28,625 48,375 25,231 +5 + 10 +7 +7 + 10 — 23 +3 + 10 +13 —8 +1 —4 —4 +4 +14 +13 —3 +2 +1 +15 +9 37,855 24,189 16,576 32,518 23,601 14,762 n.a. 23,656 n.a. + 16 +2 +12 n.a. +2 n.a. n.a. +7 n.a. 2,368,676 50,974 376,969 50,175 108,576 259,065 822,528 2,214,458 52,270 336,338 45,568 85,383 246,895 793,158 2,377,738 55,383 373,073 47,396 108,793 254,143 835,157 +7 —2 +12 +10 +27 +5 +4 +0 —8 +1 +6 +0 +2 —2 +5 +2 +5 + 11 +1 +5 +6 SIXTH DISTRICT, Total 19,929,111 Total, 32 Cities 11,938,432 18,608,191 11,132,322 18,514,172 11,589,808 +7 +7 +8 +3 +11 +6 306,400,000 274,500,000 293,200,000 +12 +5 +10 ALABAMA, Totalf Anniston . . . . Birmingham . . Dothan . . . . Gadsden . . . . Huntsville* . . Mobile . . . . Montgomery . . Selma* . . . . Tuscaloosa* . . . . . . . . . . . . . . LOUISIANA, Totalf** Abbeville* . . . Alexandria* . . Baton Rouge . . Bunkie* . . . . Hammond* . . . Lafayette* . . . Lake Charles . . New Iberia* . . New Orleans . . . Plaquemine* . . Thibodaux* . . . MISSISSIPPI, Totalf** Biloxi-Gulfport* . Hattiesburg . . . Jackson . . . . Laurel* . . . . Meridian . . . . Natchez* . . . PascagoulaMoss Point* . . Vicksburg . . . Yazoo City* . . . TENNESSEE, Totalf** Bristol* . . . . Chattanooga . . . Johnson City* . . Kingsport* . . . Knoxville . . . . Nashville . . . . UNITED STATES 344 Cities . . . *Not included in total for 32 cities that are part of the national debit series main tained by the Board of Governors. fPartly estimated. n.a. Not available. ♦♦Includes only banks in the Sixth District portion of the state. • 6 • r Revised. S ix th D is tr ic t S ta tis tic s Seasonally Adjusted (All data are indexes, 1957-59 = 100, unless indicated otherwise.) Latest Month (1963) One Month Ago Two Months Ago One Year Ago SIXTH DISTRICT PRODUCTION AND EMPLOYMENT Nonfarm Employment ................................... Mar. Manufacturing........................................ Mar. Apparel..................................................Mar. Chemicals.............................................Mar. Fabricated M e t a ls .............................. Mar. F ood.......................................................Mar. Lbr., Wood Prod., Furn. & Fix. . . . Mar. P a p e r ..................................................Mar. Primary M e t a ls ................................... Mar. Textiles..................................................Mar. Transportation Equipment.................... Mar. Nonmanufacturing...................................Mar. Construction........................................ Mar. Farm Employment........................................ Mar. Insured Unemployment, (Percentof Cov. Emp.) Mar. Avg. Weekly Hrs. in Mfg., (Hrs.) . . . . Mar. Manufacturing P a y r o lls .............................. Mar. Construction C ontracts*.............................. Feb. Residential ............................................. Feb. All O th e r .................................................. Feb. Electric Power P rodu ction**.................... Feb. Cotton Consumption** .............................. Mar. Petrol. Prod, in Coastal La. and Miss.** . Mar. FINANCE AND BANKING Member Bank Loans* All B a n k s..................................................Mar. Leading C i t i e s ........................................Apr. Member Bank Deposits* All B a n k s..................................................Mar. Leading C i t i e s ........................................Apr. Bank D e b it s * /* * ........................................ Mar. 38,861 39,333r38,663r 36,979r 114 123 114 114 112 130 114 120 115 115 115 108 124p 134r 119 114 123 126r 129 113 166 149 178 146 148 141 147r 132r 110 109 129 104 110 103 93 107 98 94 116 I ll 100 89 4.0 40.7 130 124 122 125 145 96 157 110 109r 129 104 110 102 93 107 96 95 114 110 98 90 4.4 40.3 128 140 108 167 145 95 152 110 109 129 103 110 104 94 107 96 95 112 110 97 89 4.7 40.0 128 128 109 144 135 91 153r 108 106 124 102 107 102 93 104 99 98 103 108 96 92 4.1 41.0 124 133 112 151 120 109 149 149 141 147 141 146 139 132 130 131 124 137 129 125 132 126 122 128 121 118 127 Feb. Feb. Mar. 5,355 129 120 5,423r 134 104 5,330r 128 106 5,081r 115 114 Mar. Mar. Mar. Mar. Mar. Insured Unemployment, (Percentof Cov. Emp.) Mar. Mar. Avg. Weekly Hrs. in Mfg., (Hrs.) . . . . Manufacturing P a y r o lls .............................. Mar. 107 102 109 92 81 4.2 40.1 120 106 102 108 91 92 4.9 40.1 118 106 102 108 92 85 5.3 39.7 116 105 100 107 98 85 4.5 40.7 117 150 129 135 146 128 128 149 128 126 133 119 121 PRODUCTION AND EMPLOYMENT Nonfarm Employment......................... Manufacturing.............................. Nonmanufacturing......................... FINANCE AND BANKING Member Bank L o a n s ................................... Member Bank D e p o s i t s .............................. Bank D e b its* * ............................................. One Year Ago Feb. Feb. Mar. 7,349 114 137 7,445r 122 110 7,280r 109 120 6,902r 107 119 Mar. Mar. Mar. Mar. Mar. Insured Unemployment, (Percentof Cov. Emp.) Mar. Avg. Weekly Hrs. in Mfg., (Hrs.) . . . . Mar. Manufacturing P a y r o lls .............................. Mar. 112 107 114 109 75 3.0 40.2 128 111 107 113 108 66 3.5 39.9 127 111 107 113 114 75 3.7 40.0 126 108 105 109 103 84 3.3 40.5 123 Mar. Mar. Mar. 150 134 149 149 132 145 151 130 135 136 126 134 INCOME AND SPENDING Personal Income, (Mil. $, Annual Rate) . . Feb. Farm Cash R e c e ip t s ................................... Feb. Department Store S a l e s * / * * .................... Mar. 5,892 115 115 5,951r 130 103 5,818r 105 107 5,586r 117 101 INCOME AND SPENDING Personal Income, (Mil. $, Annual Rate) Farm Cash R e c e ip t s ......................... Department Store Sales** . . . . PRODUCTION AND EMPLOYMENT FINANCE AND BANKING Member Bank L o a n s ................................... LOUISIANA PRODUCTION AND EMPLOYMENT Nonfarm Employment................................... M anufacturing........................................ Nonmanufacturing................................... Construction........................................ Farm Employment........................................ Insured Unemployment, (Percentof Cov. Emp.) Avg. Weekly Hrs. in Mfg., (Hrs.) . . . . Manufacturing P a y r o lls .............................. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. 102 100 102 92 85 4.6 42.6 124 102 100 103 89 87 4.9 42.7 123r 102 100 102 88 91 5.3 41.4 119 100 93 102 85 97 4.5 41.5 107 FINANCE AND BANKING Member Bank L oans*................................... Member Bank D eposits*.............................. Bank D e b it s * /* * ........................................ Mar. Mar. Mar. 140 119 121 144 120 112 139 115 116 128 111 117 Feb. Feb. Mar. 2,985 141 104 3,029r 149 99r 2,966r 132 103 2,794r 127 93 Mar. Mar. Mar. Mar. Mar. Insured Unemployment, (Percentof Cov. Emp.) Mar. Mar. Avg. Weekly Hrs. in Mfg., (Hrs.) . . . . Manufacturing P a y r o lls .............................. Mar. 115 117 114 119 84 4.6 40.3 135 114 117 113 113 87 5.3 40.5 134 114 117 112 107 80 5.4 40.3 132 110 111 110 104 84 4.8 40.8 125 Mar. Mar. Mar. 165 141 147 161 140 140 159 136 135 148 127 136 Feb. Feb. Mar. 6,313 117 123 6,372r 119 104 6,245r 106 107 6,001r 106 118 Mar. Mar. Mar. Mar. Mar. Insured Unemployment, (Percent of Cov. Emp.) Mar. Avg. Weekly Hrs. in Mfg., (Hrs.) . . . . Mar. Manufacturing P a y r o lls .............................. Mar. 110 111 109 124 97 5.0 40.4 127 110 111 109 123 95 5.7 40.0 125 110 111 109 120 88 6.0 40.6 126 108 110 106 121 93 5.0 41.1 126 152 134 137 150 131 131 148 129 128 134 124 132 INCOME AND SPENDING Personal Income, (Mil. $, Annual Rate) Farm Cash R e c e ip t s ......................... Department Store Sales*/** . . . PRODUCTION AND EMPLOYMENT Nonfarm Employment......................... Manufacturing.............................. Nonmanufacturing......................... FINANCE AND BANKING Mar. Mar. Mar. TENNESSEE FLORIDA INCOME AND SPENDING Personal Income, (Mil. $, Annual Rate) . . Farm Cash R e c e ip t s ................................... Department Store S a l e s * * ......................... PRODUCTION AND EMPLOYMENT Nonfarm Employment................................... Manufacturing........................................ Nonmanufacturing................................... Construction........................................ Farm Employment........................................ Insured Unemployment, (Percentof Cov. Emp.) Avg. Weekly Hrs. in Mfg., (Hrs.) . . . . Manufacturing P a y r o lls .............................. Two Months Ago MISSISSIPPI ALABAMA FINANCE AND BANKING Member Bank L o a n s ................................... Member Bank D e p o s it s .............................. Bank D e b its* * ............................................. One Month Ago GEORGIA INCOME AND SPENDING Personal Income, (Mil. $, Annual Rate) . . Feb. Farm Cash R e c e ip t s ................................... Feb. C r o p s .......................................................Feb. L ivestock..................................................Feb. Department Store S a l e s * / * * .................... Apr. Department Store S t o c k s * ......................... IVIar. Instalment Credit at Banks,* (Mil. $) New Loans ............................................. Mar. Repaym ents.............................................Mar. INCOME AND SPENDING Personal Income, (Mil. $, Annual Rate) Farm Cash R e c e ip t s ......................... Department Store Sales** . . . . Latest Month (1963) Feb. 10,967 Feb. 103 Mar. 157 ll,113r ll,024r 112 102 149 148 10,615r 117 145 INCOME AND SPENDING Personal Income, (Mil. $, Annual Rate) Farm Cash R e c e ip t s ......................... Department Store Sales*/** . . . PRODUCTION AND EMPLOYMENT Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. 116 120 115 93 117 3.5 41.5 157 115 118 114 90 116 3.9 40.9 152 115 120 114 90 125 4.0 40.8 153 114 119 113 89 116 3.6 41.8 151 Mar. Mar. Mar. 148 134 136 145 130 134 142 126 130 128 121 125 FINANCE AND BANKING Member Bank L oans*................................... Member Bank D eposits*.............................. Bank D e b it s * /* * ........................................ Mar. Mar. Mar. *For Sixth District area only. Other totals for entire six states. **Daily average basis. p Preliminary. r Revised. Sources: Personal income estimated by this Bank; nonfarm, mfg. and nonmfg. emp., mfg. payrolls and hcurs, and unenip., U.S. Dept, of Labor and cooperating state agencies; cotton consumption, U.S. Bureau of Census; construction contracts, F. W. Dodge Corp.; petrol, prod., U.S. Bureau of Mines; elec. power prod., Fed. Power Comm.; farm cash receipts and farm emp., U.S.D.A. Other indexes based on data collected by this Bank. All indexes calculated by this Bank. DISTRICT BUSINESS CO N D ITIO N S I he District's economic indicators confirm a genuine improvement in recent business activity. Production and employment in nearly all sectors continued the strengthening trend begun earlier this year. The farm sector, experiencing relatively favorable marketings and prices for some products, added a push. District consumers, aided by larger incomes and an apparent willingness to incur debt, provided further basic strength to the advance. And, total loans at member banks remained near March's record level. v* v* District nonagricultural employment reached a new high in March, reflecting increases in every state except Louisiana and Tennessee. M a n u fa ctu rin g e m p lo y m e n t also clim b e d to a n e w p e a k . M a n u fa c tu rin g p a y ro lls ro se su b sta n tia lly , as b o th a v era g e h o u r ly ea rn in g s an d a v era g e h o u rs w o rk ed p er w e e k in crea sed . A m o n g ty p e s o f m a n u fa ctu rin g activ ity, prim ary m e ta ls, fa b rica ted m eta ls, an d tra n sp o rta tio n e q u ip m e n t sh o w e d th e stron gest a d v a n ces. C o n stru ctio n e m p lo y m e n t w a s u p in all sta tes, as th e resu lt o f recen t h ig h le v e ls o f co n str u c tio n co n tra c t a w ard s an d resid en tia l b u ild in g p erm its. C ru d e p etro leu m p r o d u ctio n r o se stro n g ly in M a rch ; an d ste e l p ro d u ctio n p a ra lleled th e sh arp n a tio n a l u p tren d in M a rc h a n d A p r il. v* Favorable economic developments have spurred the farm economy recently. D r y , c o o l w ea th er d u rin g m o s t o f A p r il fa c ilita te d field w o r k b u t d e la y e d cro p g ro w th an d se e d g erm in a tio n in so m e areas. R a in s h a v e re p le n ish e d so il m o istu re r ecen tly in m o s t p rin c ip a l fa rm in g areas in th e north ern h a lf o f th e D istr ic t. M e a n w h ile , fa rm m a rk etin g s h a v e b e e n su sta in ed , as la rg er -th a n -se a so n a l g a in s in m a rk etin g s o f liv e sto c k a n d p o u ltr y p ro d u cts, p rin cip a lly ca ttle , b ro ilers, an d e g g s, m o re th a n o ffse t d e c lin in g citru s and v e g e ta b le sh ip m en ts. E g g an d b ro iler p r o d u c tio n are m a in ta in in g th eir rap id p a ce o f r ec e n t w e e k s. ^ i* District consumer spending continues to make a substantial con tribution to the improvement in overall economic activity. P relim in a ry figures in d ica te th a t A p r il d ep a rtm e n t sto re sa le s d e c lin e d m o d e r a te ly fr o m th e reco rd v o lu m e o f M a rch . B a n k d eb its, h o w e v e r , re a c h e d an a ll-tim e record d u rin g M a rch , w ith all D istr ic t sta tes sh o w in g in cr e a ses. A u to sa le s fo r early ’6 3 , as reflected b y reg istra tio n fig u res, c o n tin u e d to run w e ll a h ea d o f th e y ea r-ea rlier v o lu m e . C o n su m e r c red it at D istr ic t co m m e r c ia l b a n k s ex p a n d ed stro n g ly , b u t th e n et in cr e a se in o u tsta n d in g s w a s sm a ller th a n th e record Member Bank Deposits v o lu m e reg istered in F eb ru a ry . u* \S P E R C E N T O F R E Q U IR E D R E S E R V E S j. 6.6 t Total loans at Sixth District member banks were virtually unchanged during April, and banks reduced their security holdings. T o ta l b a n k Excess Reserves v a 4.4 4.5‘V Borrowings from F. R Bank'll IIIi II m I960 ft n M l I-1 1961 "i"I 1962 3 i 1963 cred it, th erefo re, d e c lin e d m o d e r a tely . T o ta l d e p o sits a lso d e c lin e d d u rin g A p ril. D u rin g M a rch , lo a n s an d d e p o sits at m e m b er b a n k s p o ste d su b sta n tia l gain s, w ith all D istr ic t sta tes e x c e p t L o u isia n a sh a rin g in th e in c r e a se . ♦Seas. adj. figure; not an index. N o t e : D a ta o n w h ich sta tem en ts are based h a v e b een adjusted to elim in a te sea so n a l in flu en ces.
@FedFRASER