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Fe d e r a l R e s e r v e B a n k OF A T L A N T A . ATLANTA, GA., May 25th, 1919. Monthly Report on Business and Agricultural Conditions in the Sixth Federal Reserve District -------- JOS. A. BY -------- MCCORD, Commercial. Reports from practically all sections of the Sixth Federal Reserve District indicate that business in almost all lines has continued active during the past month. The retail trade is still on the increase, and wholesale merchants also report an increased volume of trade. This applies to all lines, but especially is it true with regard to the dry goods business, and to those lines which during the period of the war were more or less restricted. A large increase has been noticeable in the number of sales by automobile houses and jewelry stores. Financial. The Victory Liberty Loan has been over-subscribed, and with the assurance that this is the last public loan, business men and bankers are laying the foundation for a period of extended and extensive activity in all lines of industry. Deposits in some instances are reported to have de creased due to payments on Victory Notes, while in other cases large increases in deposits are reported. Interest rates remain steady. There has been some liquidation of discounts as a result of scattered sales of cotton. An extended inquiry throughout the District indicates that the cash sales are considerably larger than before the war, or even a year ago, and there has also been a decrease in the credit sales, not, however, to the extent of the increase in cash sales. Merchants are availing themselves of the privilege of discounting their bills more than ever before, and more sales are being made on thirty days time whereas previously goods were sold on sixty and ninety days time. This is at tributed to the increased wages and higher prices received for all products. These reports indi cate that there is more money in the hands of the people than ever before. Foreign and Central American Trade. Since the signing of the Armistice, both the export and import trades have increased con siderably. The shippers as yet are still governed by Government Allocations, and are unable to make bookings for foreign destinations. In spite of this, however, large shipments of grain, lum ber, cotton and foodstuffs are being made. Inland shippers are handicapped as the railroads refuse to accept freight for foreign destinations until cargo space is assured. Relief is promised in the form of more ships in the near future, and in this event trade conditions will be better than ever before. Central American trade is also hampered by lack of ships, but in spite of this large quantities of coffee, sisal and tropical fruits, especially bananas, are being imported. Agriculture. The weather has been favorable for crop planting, practically all cotton and other crops hav ing been planted. Good stands are reported in the soutnem portion of these states. Excessive rainfall the second and third week of the month, however, with the cool nights following caused injury to the growth of cotton, as well as other crops, but replanting where imperfect stands have shown up, will place this crpp iip good condition. The price of cotton has increased since last report, and if this increase, although slight, con tinues* it is probable a good deal of the cotton now held by farmers and merchants will be disposed of, causing a release to other lines of business of the money now carried on cotton paper. Latest reports indicate a general reduction in the cotton acreage in all of the States of the District except Alabama, where a 5 per cent, increase is predicted. Reports state the acreage in Georgia will be cut 20.5'*, in Tennessee 18'/?, in Mississippi, 15%, and in Louisiana from 15 to 2 0 ';. Corn crops are reported in good shape. Fruits and vegetables appear not to have been damaged by recent light frosts, and the outlook is encouraging for large yields. Strawberry crops are excellent and prices satisfactory. The wheat and oats crops are reported fair, with prospects for large yields. It is estimated that the total production in Alabama will be 2,000,000 bushels. The orange and grapefruit crops for this season have been practically all shipped. citrus trees are in good condition and there is no unusual sign of the small fruit shedding. new crop is said to have never been finer and prospects are for a large yield another season. The The Tomato shipments from the East coast of Florida have practically closed, and the West coast has just started shipping in a small way. The market is about $4 to $4.50 for fancy stock. The potato market is firm at from $7 to $7.25. About 75% of the Hastings crop has been moved, and the next two weeks will probably see it completed. It is probable that a steady and possibly higher market will prevail. Potatoes from the Putnam district are now being harvested, and the yield is estimated at about one-third of that of last year, but the prices about four times as good. In the middle of the State the bean and cucumber crops are light and quality only fair. Peanuts, velvet beans and sugar cane in this section are in good condition. Weather conditions on the whole have been very favorable to growing crops. Labor. There is still an appreciable shortage of farm labor throughout the District, though possibly not so acute as formerly reported. In industrial lines the supply of labor seems to be about equal to the demand, although some sections report a shortage and others report a slight surplus. Live Stock. Good reports are received from all of the States in the district regarding increased live stock production. This is further evidenced by the fact that another large packing plant is to be located at Nashville in the near future. Florida Meats. Cattle prices have been steady but at considerably lower level than early March. The run of grass cattle is at least thirty days late as compared with last year. Hog receipts for April show an increase of about 60% over the same month last year, and it is estimated the summer run “ will show an improvement of about 25%. W ool There is little activity in the Nashville wool market, due to the unsatisfactory movement of spring clip wool. The cold weather recently prevailing has greatly hampered shearing and Ten nessee wool producers have not furnished enough of the product to enliven the market. Dealers believe, however, that the movement will begin to be satisfactory with more favorable weather. Naval Stores. Turpentine has continued to be in active demand and is bringing a very good price. Rosin accumulations have all been taken up by exporters and at better prices than were expected, and receipts are being brought up daily. The statistical position o f rosin and turpentine is very strong and seems to be getting better. The new crop is late, but a large movement is looked for from now on. Lumber. In the lumber market during April there was a good demand for boards and planing mill! stock, and prices held up well. On dimension lumber the demand was light and prices fell off. Dur- \ ing the past two or three weeks the demand for planing mill stock has greatly increased, and the price has advanced to a point where it is now higher than it ever has been. Stocks of boards and planing mill material are low and with the movement for home building being advocated over the entire country, it seems reasonable to suppose that prices of boards and light stock will go highe r. The demand for dimension lumber is weak and the price has continued on a downward trend. Coal. Coal production is not up to the standard, due to inactivity of the manufacturing business which, at the present time, is not up to normal. The coal output for April was 1,350,019 tons as compared with 1,436,517 tons for March. It is believed that the coal production will be increased considerably during the next sixty days, as orders for domestic use will begin to be placed. Cotton mills are not active, running on short time. orders, and this industry is showing improvement. Pipe plants are beginning to receive Iron and Steel. Pig iron trade at the present is dull. The high freight rates heretofore prevailing out of this territory have been a handicap to the manufacturers. The recent ruling by the Interstate Commerce Commission will result in great benefit to the manufacturers of pig iron in Alabama, as it will enable them to compete for trade in northern territory, which has heretofore been impos sible. Inquiries for pig iron show an increase and the outlook is for a larger volume of business. The production of pig iron in April was 152,186 tons, as compared with 185,604 tons for March. The Steel Mills in Alabama are active. Steel rails are being rolled and it is believed that the railroads cannot much longer delay entering the market for a large tonnage, for rails as well as for other equipment. The unfilled steel tonnage of the United States Steel Corporation in April was reported to be 4,800,865 tons, as against 5,430,572 tons in March. Considering the district as a whole, business conditions may be considered very satisfac tory. The readjustment to peace conditions is taking place, though slowly and with caution. With the declaration of peace, and the lifting of all embargoes on exportations, it may confidently be ex pected there will be a demand for all of the things that we can produce or manufacture, certainly for a considerable length of time. CLEARINGS—APRIL. 1918 Atlanta, Ga____ ____________________________________ $183,227,941.04 Augusta, Ga. _______________________________________ 15,013,321.42 Macon, Ga____ ______________________________________ Savannah, Ga. ______________________________________ 28,041,535.35 Jacksonville, Fla __________ _________________________ 21,928,843.78 Tampa, Fla____ _____________________________________ 6,876,454.30 New Orleans, La_ __________________________________ 240,669,429.78 _ Vicksburg, Miss________ ____________________________ 1,910,784.04 Chattanooga, Tenn._________________________________ 20,519,392.18 Knoxville, Tenn______________________________________ 13,034,446.42 Nashville, Tenn._____________________________________ 58,926,375.53 Pensacola, Fla_______________________________________ 10,333,928.00 Mobile, Ala. ________________________________________ 6,356,019.34 Birmingham, A la .__________________________________ 17,603,409.58 Montgomery, Ala----------- ------------------------------------------6,857,959.05 1919 $207,845,363.39 12,830,737.10 25,689,182.79 36,032,363.76 9.110.271.27 208,011,539.51 1.518.708.28 21,265,002.35 12,103,617.62 68,484,268.58 11,688,504.00 7,288,945.02 47,407,270.88 7,526,040.00 BUILDING OPERATIONS—APRIL. Repairs and Additions Value Number New Buildings Number 125 28 27 14 3 33 1 91 13 4 2 2 23 73 19 15 26 1 4 72,449 1,000 2,150 17,765 2,524 2,310 156,483 46,563 21,945 2,000 54,175 10,300 11,304 1,750 $859,100 113,737 26,275 33,900 5,535 33,650 1,340 93,900 18,330 5,100 4,000 7,900 61,350 386,450 16,355 109,575 280,000 640 15,625 31 24 1 41 2 28 12 $ 88,120 20,086 3,075 38,746 5,535 16,625 2,173 78,636 13,733 ................ ..................... 218 Atlanta, Ga..................... Augusta, G a................................_ ..... ..................... 112 Brunswick, Ga................................................................. 19 Macon, Ga. ... ............... ..................... 80 Rome, G a ......... ...................................... ..................... 16 Savannah, Ga. ........................................... ..................... 20 Waycross, G a............................................. ..................... 10 ........... ......... 333 Birmingham, Ala. ..................... 137 Montgomery, Ala. Anniston, Ala..............................-............. .............. Sheffield, Ala. ............... ...... Tuscaloosa, Ala. ........... -.......................... Jacksonville, Fla. ..................... ............... ..................... 37 Miami, Fla. ..........................................-.... .. ............. .... 5 Orlando, Fla. ............................ ................ ................ . 6 Tampa, Fla. ............................... ............... ..................... 77 W. Palm Beach, Fla.................... ............... West Tampa, Fla. .................................... ..................... 18 Gainesville, F la......................................... ..................... 10 Chattanooga, Tenn. ..................... .....................249 Nashville, Tenn. ..................................... .................... 373 Knoxville, Tenn........................................ . ..................... 80 Clarkesville, Tenn. .................................. ............ ........ 7 New Orleans, La. .................................... .....................35 Meridian, Miss...... ...... .............................. .................... 12 Alexandria, La. ....................... ................. ..................... 34 Mobile, Ala. ............................................... ..................... 4 Value 140,850 92,950 1,500 156,869 18,200 29,150 112,800 SELECTED MEMBER BANK STATISTICS—SIXTH DISTRICT. (000’g omitted). Branch Cities NEW ORLEANS, JACKSONVILLE, BIRMINGHAM OTHERS 8 Members April 11 May 9 21 Members April 11 May 9 18 Members April 11 May 9 .$ 3,800 . 3,188 . 10,043 . 17,031 . 5,097 . 58,894 . 5,346 . 2,447 . 43,95(5 . 19,(521 $ 5,085 12,319 41,202 58,606 11,676 161,499 15,972 6,314 138,266 54,909 $ 6,380 14,393 19,560 40,333 5,415 82,515 7,525 4,958 63,941 34,174 ATLANTA I’. S. Bonds to secure circulation .......................... Other I,’. S. bonds including Liberty Bonds ........... U. S. Certificates of Indebtedness ............................ Total I’. S. Securities owned .................................. Loans secured by Liberty Bonds and Certificates... A other loans and investments, gross .................... 11 Reserve balances with F. R. Bank .......................... Cash in Vault........................................................... Net demand deposits on which reserve is computed. Time deposits .......................................................... # 3,800 3,682 10,983 18,465 5,235 58,233 7,034 2,504 45,755 21,441 $ 5,085 15,664 42,197 62,946 11,343 154,529 16,601 6,037 139,245 60,742 $ 6,615 19,340 20,701 46,656 5,439 81,554 7,952 5,004 65,178 34,072
