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V o lu m e
A t la n t a , G e o r g ia , M a y
X X V I
N um ber
3 1 ,1 9 4 1
D is t r ic t S u m m a ry
5
A s s ig n m e n t o f C la im s in
o f B u s in e s s C o n d itio n s
D e f e n s e f in a n c in g
M e r c h a n d is e d is t r ib u t io n in A p r i l a t b o th r e t a il a n d w h o le s a le
A n a s p e c t o f th e n a t io n a l d e fe n s e p r o g r a m p a r t ic u la r ly a n d
in c r e a s e d m o re th a n u s u a l o v e r M a r c h a n d w a s w e ll a b o v e th e
d ir e c t ly c o n c e r n in g b a n k e r s is th e A s s ig n m e n t o f C la im s A c t
le v e l a t th e c o r r e s p o n d in g tim e la s t y e a r ; t h e re w e re g a in s in
o f O c to b e r 1 9 4 0 , u n d e r w h ic h th e p a r t t h a t b a n k s m a y p la y in
b u ild in g a n d c o n s t r u c t io n a c t iv it y , a n d t e x t ile o p e r a t io n s ro s e
th e d e fe n s e p r o g r a m
to a n e w h ig h le v e l. C o a l p r o d u c tio n in A la b a m a a n d T e n n e s
o g n iz in g th e a s s ig n m e n t to b a n k s a n d o t h e r fin a n c in g in s t it u
s e e w a s in t e r r u p t e d b y la b o r d if fic u lt ie s a n d p ig ir o n
w a s re d u c e d s o m e w h a t b y a n e x p lo s io n
h a s b e e n s u b s t a n t ia lly e n la r g e d . I n
re c
o u tp u t
t io n s o f c la im s a g a in s t it s e lf , th e g o v e rn m e n t h a s p r o v id e d
b la s t
p r o s p e c t iv e d e fe n s e c o n t r a c t o r s w it h a n a d d it io n a l b a s is f o r
t h a t c u r t a ile d
f u r n a c e o p e r a t io n s .
o b t a in in g
► D e p a rtm e n t s t o r e s a le s in c r e a s e d in A p r i l b y 1 0 p e r c e n t o n
s e c u r it y is a t t r a c t iv e to th e b a n k s , f a c ilit a t e d t h e fin a n c in g o f
a d a ily a v e r a g e b a s is , a n d w e re 3 2 p e r c e n t h ig h e r th a n in
d e fe n s e w o r k , a n d h a s e n c o u ra g e d th e p a r t ic ip a t io n o f b a n k s
A p r i l la s t y e a r . A f t e r a llo w a n c e f o r s e a s o n a l in flu e n c e s , in
a n d o th e r p r iv a t e le n d e r s in th e d e fe n s e e f f o r t .
c lu d in g th e la t e r d a te o f E a s t e r t h is y e a r , th e a d ju s t e d in d e x o f
The
b a n k c r e d it , a n d h a s , to th e e x t e n t t h a t t h is n e w
A ct
re p re s e n t s
th e
re v e rs a l o f a
g o v e rn m e n t p o lic y
d a ily a v e r a g e s id le s w a s u p 1 3 p e r c e n t fr o m M a r c h a n d w a s 2 7
a d o p te d in 1 8 4 6 a n d u n in t e r r u p t e d ly m a in ta in e d f o r a lm o s t a
p e r c e n t a b o v e t h a t f o r A p r i l 1 9 4 0 . T h e u n a d ju s te d in d e x f o r
c e n t u r y . U n d e r a s t a tu te o f t h a t y e a r a l l t r a n s f e r s a n d a s s ig n
A p r i l is h ig h e r th a n i t h a s e v e r b e e n in A p r i l b e fo r e , a n d th e
m e n ts o f c la im s u p o n th e U n it e d S ta te s w e re d e c la r e d “ a b s o
a d ju s te d in d e x is th e h ig h e s t f o r a n y m o n th in th e s e r ie s c o v
lu t e ly n u ll a n d v o id ”
e r in g
a llo w e d , th e a m o u n t o f th e c la im
m o re th a n tw e n ty - tw o y e a r s . W h o le s a le s a le s in
in c r e a s e d
6
p e r c e n t o v e r M a rc h , w h e n
t h e r e is
A p r il
u s u a lly
a
► T h e v a lu e o f c o n s t r u c t io n c o n t r a c t s a w a rd e d in A p r i l in th e
S ix t h D is t r ic t in c r e a s e d 5 4 p e r c e n t o v e r th e M a r c h t o t a l a n d
w a s 3 8 p e r c e n t g r e a te r th a n f o r A p r i l la s t y e a r . W h ile th e re
w a s a g a in o f 1 3 p e r c e n t in r e s id e n t ia l c o n t r a c t s in A p r i l , th e
la r g e r p a r t o f th e m o n th ’ s in c r e a s e w a s in “ a l l o th e r” a w a r d s ,
w h ic h in c lu d e n o n - r e s id e n t ia l b u ild in g , p u b lic w o r k s , a n d u t il
it ie s . R e s id e n t ia l a w a r d s w e re o ff 1 5 p e r c e n t in
c o m p a ris o n
w it h A p r i l o f la s t y e a r , b u t “ a l l o th e r” c o n t r a c t s w e re u p 9 5
p e r c e n t . T h e fo u r - m o n th t o t a l o f c o n t r a c t s f o r a l l ty p e s o f c o n
s t r u c t io n
f o r th e
J a n u a r y - A p r il p e r io d
a m o u n ts to
$ 1 3 3 .4
m illio n , a n d is 2 5 p e r c e n t la r g e r th a n f o r t h a t p a r t o f 1 9 4 0 .
In d e e d , n o t s in c e
1 9 2 7 h a s th e J a n u a r y - A p r il t o t a l in
t h is
D is t r ic t b e e n s o la r g e a s i t h a s b e e n t h is y e a r .
A n o th e r n e w
h ig h
le v e l in
t e x t ile
a c t iv it y
in
t h is D is t r ic t
w a s re a c h e d in A p r i l. C o tto n m ills in A la b a m a , G e o r g ia , a n d
T e n n e s s e e c o n s u m e d a t o t a l o f 3 0 3 ,9 0 5 b a le s o f c o tto n , o r a n
a v e r a g e o f 1 1 ,6 8 8 b a le s f o r e a c h o f th e t w e n t y - s ix w o r k in g
d a y s in A p r i l . T h is re p re s e n t s a g a in o f 5 p e r c e n t o v e r th e
r a t e f o r M a r c h , a n d is h a lf a g a in a s la r g e a s f o r A p r i l la s t
y e a r . I n th e n in e m o n th s o f th e c u r r e n t s e a s o n , A u g u s t th ro u g h
A p r i l, m ills in t h is D is t r ic t h a v e u s e d 1 7 p e r c e n t m o re c o tto n
th a n in t h a t p a r t o f th e p r e v io u s s e a s o n . F o r th e c o u n t r y a s a
Continued, on p age 28
L o a n s a n d C o m m itm e n ts to
M a k e L o a n s fo r D e fe n s e
P u rp o s e s . W e e U y R e p o rtin g
B a n k s o f th e S ix t h D is tric t ,
A p r il 3 0 , 1941. S o ]jd A re a s
R e p re s e n t L o a n s a n d C o m
m itm e n ts F in a n c e d b y A s
s ig n m e n t o f C la im s .
h a d been
a s c e r t a in e d , a n d a w a r r a n t
is s u e d f o r it s p a y m e n t. U n d e r s u c h c o n d it io n s d ie p o s s e s s io n
of a
d e c lin e , a n d w e re 3 0 p e r c e n t g r e a t e r th a n in A p r i l 1 9 4 0 .
u n t il s u c h t im e a s th e c la im
g o v e rn m e n t c o n t r a c t p r o v id e d
c r e d it . E a r l y
in
in
it s e lf li t t l e
a c c e s s to
th e p r e s e n t d e fe n s e p r o g r a m , h o w e v e r, th e
B o a r d o f G o v e r n o r s o f th e F e d e r a l R e s e r v e S y s t e m , th e N a
t io n a l D e fe n s e C o u n c il, th e W a r a n d N a v y D e p a rtm e n t s , a n d
o th e r in t e re s t e d g ro u p s a n d p e rs o n s p e titio n e d th e g o v e rn m e n t
f o r a r e v e r s a l o f it s c e n tu r y - o ld p o lic y .
T h e v o lu m e o f w o r k c o n te m p la te d b y th e d e fe n s e p r o g r a m
w a s v e r y la r g e , a n d a c o n s id e r a b le n u m b e r o f p r o d u c e rs w o u ld
h a v e b e e n e lig ib le to c o m p e te b y d ir e c t b id s o n g o v e rn m e n t
w o r k o n ly i f
fin a n c in g
c o u ld
b e a r r a n g e d . T h e g o v e rn m e n t
w a s a n x io u s to e n lis t th e s e r v ic e s o f p r iv a t e le n d e r s a s m u c h
a s p o s s ib le , b u t w illin g n e s s u p o n th e p a r t o f le n d e r s d e p e n d e d
in m a n y in s ta n c e s u p o n t h e ir o b ta in in g th e s e c u r it y o f a d ir e c t
c la im
a g a in s t th e g o v e rn m e n t. W it h o u t a n a s s ig n e d c la im , a
b a n k m a k in g a d e fe n s e lo a n w o u ld b e a p t to f in d it s e lf a m o n g
th e g e n e r a l c r e d it o r s o f th e c o n t r a c t o r — e v e n f o r th e p o r t io n
o f th e c o n t r a c t a lr e a d y f u lf ille d — in th e e v e n t o f h is in s o lv
e n c y , a n d w o u ld h a v e n o a s s u r a n c e , e v e n i f th e c o n t r a c t w e re
f u lf ille d , t h a t fu n d s re c e iv e d f r o m
th e g o v e rn m e n t w o u ld b e
u s e d p r o m p t ly to r e p a y th e lo a n .
A t th e S e n a te h e a r in g s i t d e v e lo p e d t h a t , n o t o n ly w a s t h e re
n o o p p o s itio n to th e b i l l , b u t t h a t n o n e p r e s e n t k n e w o f a n y
s e r io u s o b je c t io n
a c c o u n tin g
to th e p r o p o s a l o th e r th a n
r e q u ir e d
o f th e
g o v e rn m e n t b y
th e a d d it io n a l
th e
tra n s fe r o f
c la im s . T h e B o a r d o f G o v e r n o r s o f th e F e d e r a l R e s e r v e S y s te m
s u p p o rte d th e b i l l w it h th e a s s u ra n c e t h a t i t w o u ld “ f a c ilit a t e
f in a n c in g
th e
p e r fo r m a n c e
o f G o v e rn m e n t c o n t r a c t s , w o u ld
e n c o u ra g e a d d it io n a l b u s in e s s c o n c e rn s to b id f o r s u c h c o n
t r a c t s a n d , b y in c r e a s in g th e n u m b e r o f b id d e r s , w o u ld te n d
to e x p e d it e , a n d to re d u c e th e c o s t o £ , th e d e fe n s e p r o g r a m .”
►T h e
d e fe n s e
p ro g ra m
has now
b e e n u n d e r w a y f o r ju s t a
y e a r , a n d th e A s s ig n m e n t o f C la im s A c t h a s b e e n in e ffe c t f o r
C on tin u ed on p a g e 28
26
M o n t h l y R e v ie w
o f th e f e d e r a l R e s e rv e B a n k o f A t la n t a f o r M a y 1941
CONDITION OF FEDERAL RESQtVE BANK OF. ATLANTA
Millions of Dollars)
Per Cent Change
May 14,1941,from
May 14 Apr. 16 May 15 Apr. 16 May 15
1940
1941
1941
1941
1940
Bills discounted___
.01 $ .06 $ .11 — 83 — 91
— 33
.3
.2
.2
Industrial advances.
— 9
104.4
94.9
U. S. securities......
94.9
—“ 6 — 9
104.8
95.1
95.2
160.4
+ 2 + 31
. 209.9
205.2
— 3 + 17
240.2
. . 281.4
288.7
—
17 — 17
26.8
26.9
22.2
13.9
+ 2 + 104
28.4
27.8
Foreign bank deposits.
5.6
5.7
+ 12 + 14
6.4
— 3 + 18
286.6
338.4
349.2
+ 32
— 1
347.8
461.8
458.9
Industrial advance commitments........
....
CONDITION OF 22 MEMBER BANKS IN SELECTED CITIES
(In Millions of Dollars)
Per Cent Change
May 14,1941,from
Apr. 16 May 15
M
ay
1
5
May 14 Apr. 16
1940
1941
1940
1941
1941
+ 13
+ 1
Loans and Investments—Total... $710.4 $703.0 $626.2
+ 22
— 1
306.8
375.6
Loans—Total........... .............. 373.3
Commercial, industrial, and
+ 22
157.8
198.5
agricultural loans............ 192.1
+ 26
3.8
5.0
Open market paper..............
4.8
Loans to brokers and dealers
1
3
+ 17
5.2
7.0
insecurities........... .........
6.1
Other loans for purchasing
4* 3
10.7
11.2
and carrying securities....... 11.0
+ 12
31.8
35.8
Real estate loans.................. 35.7
+ 100
.7
1.2
Loans to banks.................... 1-4
+
26
96.9
117.0
Other loans......................... 122.3
+ 6
319.4
327.3
Investments—Total.................. 337.0
+ 7
148.3
158.2
U. S. direct obligations.......... 159.1
Obligations guaranteed by
— 7
66.5
53.2
U.'S................................ 61.7
+ 11
104.6
115.9
O th er s e c u r it ie s ............................... ^ § -2
+ 22
144.9
172.4
Reserve with F. R. Bank........... 176,7
+ 27
1
2
.7
14.8
Cash in vault.......................... 16.1
+ 9
240.7
268.2
Balances with domestic banks... 261.5
+
21
413.2
483.9
Demand deposits—adjusted..... 501.6
+ 1
191.0
193.0
Time deposits......................... 193.0
—
24
47.5
34.3
U. S. Government deposits....... 36.0
+ 17
315.9
386.4
Deposits of domestic banks..... . 370.9
Borrowings....................................
(In Thousands of Dollars)
Per Cent Change
April, 1941,from
April
April
March
M
ar. 1941 Apr.1940
1
9
4
0
1
9
4
1
1
9
4
1
ALABAMA
— 2 + 21
Birmingham...... ........ $ 117,463 $ 119,841 $ 97,336 —
0 + 35
2,935
3,963
3,954
40,864 — 2 + 30
54,569
........
53,206
22,438 + 7 + 30
27,197
29,139
Montgomery......
FLORIDA
85,237 — 11 + 27
122,035
108,474
Jacksonville......
62,873 — 14 + 15
72,474
84,313
Miami.............. ........
9,267 — 2 + 27
12,013
11,812
Pensacola........ ........
35
32,717 + 9
40,522
44,158
Tampa............ .........
GEORGIA
5,423 — 3 + 18
6,568
6,389
Albany............
216,241 — 6 + 25
286,648
269,745
Atlanta............
19,625 + 1 + 31
25,469
25,777
Augusta........... .......
3,227 + 6 + 4
3,174
3,366
Brunswick........
16,621 + o + 48
24,417
24,537
Columbus........
1,218 + 11 + 22
1
,3
4
5
1
,4
9
1
Elberton...........
15,554 — 10 + 54
26,530
23,943
Macon..............
1,939 — 3 + 30
2,60
1
2,513
Newnan...........
28,937 — 1 + 22
35,832
35,341
— 1
3,895
+ io
4,312
4,271
Valdosta... i.....
LOUISIANA
- 3 + 21
217,299
270,115
262,930
New Orleans...
MISSISSIPPI
5,187 — 12 + 90
11,209
9,864
Hattiesburg.......
29,121 + 5 + 15
31,923
33,479
Jackson...: .......
12,397 + 2 + 27
15,385
15,683
Meridian.......... ........
8,051 — 0 — 2
7,877
7,872
Vicksburg........
TENNESSEE
44,011 — 11 + 14
56,267
50,333
Chattanooga.....
32,252 — 7 + 8
37,483
34,975
Knoxville..........
85,288 + 3 + 26
104,371
107,078
Nashville..........
SIXTH DISTRICT
- 4 + 24
26 Cities...........
1,360,267 1,415,979 1,099,953
UNITED STATES
274 Cities..........
42,237,000 44,558,000 37,780,000 — 5 + 12
RETAIL TRADE —APRIL 1941
(Cities for which no indexes are compiled)
Sales for April compared with:
Mar. 1941 Apr. 1940
Mar. 1941 Apr. 1940
Baton Rouge___ + 29
+ 27
Knoxville....... +11
+30
Chattanooga.... + 7
+31
Macon............ +16
+55
Jackson........... +21
+31
Montgomery___ +12
+21
Jacksonville___ +10
+43
Tampa............. + 8
+22
N a tio n a l S u m m ary o f
Prepared by the Board oi Governors
W h o le sa le co m m o d ity p ric e s ad van ced s h a rp ly in A p r il an d th e firs t h a lf
o f M a y , w ith th e e xce p tio n p rin c ip a lly o f m e ta ls fo r w h ic h m aTin n im
p ric e s h ad been e sta b lish e d . In d u s tria l p ro d u ctio n d e c lin e d in A p r il,
o w in g to re d u ce d o u tp u t o f c o a l an d a u to m o b ile s, b u t in cre a se d ra p id ly
in th e firs t h a lf o f M a y a s o p e ra tio n s in th e se in d u strie s w e re re su m e d .
P R O D U C T IO N .
In A p r il th e B o a rd ’ s se a so n a lly a d ju ste d in d e x o f
in d u s tria l p ro d u ctio n d e c lin e d to 139 p e r c e n t o f th e 1935-1939 ave ra g e ,
a d rop o f 4 p o in ts fro m M a rc h . T h e d e c lin e re fle c te d c h ie fly a sh a rp
re d u c tio n in o u tp u t o f b itu m in o u s c o a l, a s m o st m in e s w e re clo se d
d u rin g th e e n tire m o n th . T h e m in e s w e re reo p ened on A p r il 3 0 an d
in th e firs t h a lf o f M a y c o a l o u tp u t in cre a se d ra p id ly .
A u to m o b ile p ro d u ctio n a lso d e c lin e d in A p r il, o w in g to stop pag e
o f w o rk a t p la n ts o f th e F o rd M o to r C o m p an y d u rin g an in d u s tria l
d isp u te . T h is w a s se ttle d ab o u t th e m id d le o f th e m onth an d d o m estic
o u tp u t h as sin c e ad van ced to a h ig h m o n th ly ra te o f o ve r 500,00 0 c a rs
an d tru c k s . A n n o u n ce m e n t b y th e O ffic e o f P ro d u c tio n M anag em en t
th a t o u tp u t in th e tw e lv e m o n th s e n d in g J u ly 31 w o u ld a p p ro xim a te
5.2 9 0 .0 0 0 u n its in d ic a te s th a t a ra te clo se to th a t n o w p re v a ilin g sh o u ld
be m a in ta in e d th ro u g h J u ly , a lth o u g h th e re is u s u a lly a co n sid e ra b le
d e c lin e in th is p e rio d .
S te e l p ro d u ctio n w a s c u rta ile d so m ew h at in th e la tte r h a lf o f A p r il
b y sh o rtag e s o f c o a l an d co k e an d o u tp u t d e c lin e d fro m a le v e l o f
100 p e r ce n t o f c a p a c ity to 9 4 p e r ce n t a t th e m onth e n d . S u b se q u e n tly
o u tp u t in c re a se d , re a c h in g 99 p e r ce n t b y th e m id d le o f M a y .
In m ost o th e r lin e s a c tiv ity co n tin u e d to in c re a se d u rin g A p r il an d
th e firs t h a lf o f M a y . M a c h in e ry p ro d u ctio n ro se fu rth e r an d a c tiv ity
in th e a irc ra ft an d s h ip b u ild in g in d u s trie s co n tin u e d to e xp an d ra p id ly .
C o n su m p tio n o f n o n fe rro u s m e ta ls a lso a d va n ce d , a n d , a s in M a rc h ,
d o m e stic so u rce s o f co p p e r w e re su p p lem en ted b y la rg e su p p lie s fro m
L a tin A m e ric a . T e x t ile p ro d u ctio n ro se fu rth e r fro m th e h ig h ra te p re
v a ilin g in M a rc h . C o n su m p tio n o f ra w co tto n in A p r il am ou nted to
920.00 0 b a le s, a n ew re c o rd le v e l, an d ra y o n d e liv e rie s a lso ro se to
a new p e a k .
INDUSTRIAL PRODUCTION
A t w o o l te x tile
m ills a c t i v it y
w a s m a in ta in e d
n e a r th e h ig h
M a rc h r a t e .
C o n tin u e d a d
van ce s w e re re
p o rted in th e
c h e m ic a l,
pa
p e r, an d food
in d u strie s.
A n t h r a c it e
p ro d u ctio n de
c lin e d co n sid
e ra b ly in A p r il,
o w in g to a de
Federal Reserve index of physical volume of production,
la y b y d e a le rs in
adjusted for seasonal variation, 1935*1939 average — 100.
p la c in g u s u a l
By months, January 1935 to April 1941.
s p r in g o rd e rs,
WHOLESALE PRICES OF BASIC COMMODITIES
b u t in cre a se d in
th e firs t h a lf o f
M a y . O u tp u t o f
c ru d e p e tro
le u m s h o w e d
lit t le c h a n g e
fro m th e M a rch
ra te , fo llo w in g
so m e in c re a se
fr o m t h e r e
d uced le v e l o f
t h e w in t e r
m o n t h s . Iro n
ore sh ip m e n ts in
A p r il am ounted
to ab o u t 7,000,Bureau of Labor Statistics' index based on 12 foodstuffs
000 to n s, an exand 16 industrial materials, August 1939 = 100. Thursday
c e p t i o n a l ly
figures, January 3, 1935 to May 8, 1941.
27
M o n t h ly R e v ie w o f th e f e d e r a l R e s e r v e S a n k o f A t la n t a f o r M a y 1 9 4 1
B u sin e ss C o n d itio n s
of the Federal Reserve System
la rg e am ou nt fo r tb is tim e o f y e a r, an d m in e o u tp u t o f n o n fe rro u s
m e ta ls co n tin u e d a t n e a r c a p a c ity ra te s .
V a lu e o f c o n stru ctio n c o n tra c t aw a rd s in A p r il d e clin e d som ew hat
fro m th e h ig h M a rc h to ta l, o w in g p rin c ip a lly to a s m a lle r vo lu m e o f
d efen se p la n t c o n tra c ts, a cco rd in g to F . W . D odge C o rp o ra tio n re p o rts.
T h e re w as an in c re a se in co n tra cts fo r p u b lic ly fin a n c e d d efen se hous
in g , an d a w a rd s fo r p riv a te re s id e n tia l b u ild in g ro se b y ab o ut th e
u su a l se aso n al am o u nt.
D IS T R IB U T IO N .
S a le s o f g e n e ra l m e rch an d ise a t d e p artm e n t an d
v a rie ty sto re s show ed ab o ut th e u su a l se aso n al ris e fro m M a rc h to A p r il,
m a k in g a llo w a n ce fo r th e ch an g in g d ate o f E a s te r. R e ta il sa le s o f n ew
a u to m o b ile s, w h ich h ad am ounted to 526 ,00 0 c a rs and tru c k s in M a rc h ,
ro se fu rth e r in A p r il and sa le s o f u sed c a rs w e re a t p e a k le v e ls .
F re ig h t-c a r lo a d in g s d e clin e d sh a rp ly in A p r il, re fle c tin g a re d u ctio n
in sh ip m e n ts o f c o a l an d c o k e , b u t in cre a se d in th e firs t h a lf o f M ay
w h en co a l m in e s w e re reo p en ed . B y th e m id d le o f th e m onth to ta l
lo a d in g s h ad ris e n to a w e e k ly ra te o n e-fo u rth h ig h e r th a n in th e
co rre sp o n d in g p e rio d la s t y e a r an d ab o ut th e sam e a s th e se aso n al
p e a k re ach e d in th e au tu m n o f 1940.
C O M M O D IT Y P R IC E S .
P ric e s o f m ost b a sic co m m o d itie s, both
d o m estic an d im p o rte d , ad van ced sh a rp ly fu rth e r in th e firs t h a lf o f
M a y fo llo w in g a sh o rt p e rio d o f lit t le ch an g e d u rin g th e la tte r p a rt o f
A p r il. P ric e in c re a se s w e re m o st p ro no un ced fo r a g ric u ltu ra l com
m o d itie s re fle c tin g in p a rt th e p ro sp e ct o f le g isla tio n ra is in g F e d e ra l
lo a n ra te s fo r b a sic fa rm c ro p s. P ric e s o f a n u m b e r o f se m im an u fac
tu re d in d u s tria l p ro d u cts, in c lu d in g p etro leu m p ro d u cts, co k e , le a th e r,
te x tile y a m s an d fa b ric s , an d b u ild in g m a te ria ls , a lso ad van ce d . M e ta l
p ric e s , n o w fo r th e m ost p a rt su b je c t to F e d e ra l c o n tro l, re m a in e d a t
th e m axim u m le v e ls e sta b lish e d e a rlie r.
B A N E C R E D IT .
B a n k lo a n s an d in ve stm e n ts h ave show n a m ark e d
ris e sin c e la s t su m m e r, th e in c re a se a t re p o rtin g b a n k s in 101 le a d in g
c itie s am o u n tin g to $ 4 ,0 0 0 ,0 0 0 ,0 0 0 . In A p r il an d e a rly M a y h o ld in g s
o f in ve stm e n ts
EXCESS RESERVES OF MEMBER BANKS
Wednesday figures partly estimated, January 2, 1935
to May 7, 1941.
MEMBER BANKS IN IO! LEADING CITIES
Wednesday figures, January 3, 1935, to May 7, 1941.
Commercial loans, which include industrial and agricultural loans, represent prior to May 19, 1937, so-called
"Other Loans" as then reported.
b y th e s e h an lrq
in c re a se d co n
sid e ra b ly , m ost*
ly a t N ew Y o rk
C it y B a n k s ,
re fle c tin g su b
s t a n t ia l p u r
ch ase s o f n e w ly
issued
Re
co n stru ctio n F i
n a n ce C o rp o ra
tio n n o te s. In
cre a se s in com
m e rc ia l lo a n s in
th is p e rio d w e re
so m ew h at sm a l
le r th an d u rin g
t h e p re ce d in g
tw o m o n ths.
E x c e s s re
se rve s o f m em
b e r b a n k s w e re
$5.7 b illio n on
M ay 14. S in c e
J a n u a r y th e y
h a v e d e clin e d
b y ab out $1.1
b illio n , o w ing
la rg e ly to re ce n t
in c r e a s e s in
T re a s u ry depos
it s w ith th e F e d
e r a l R e s e rv e
B a n k s an d to
in c r e a s e s in
P,irronpv in pir.
'
c u la tio n .
SIXTH DISTRICT BUSINESS INDICATORS
Indexes
(1923-1925average = 100, except as noted)
Adjusted Unadjusted
Apr. Mar. Apr.Apr. Mar.
1941 1941- 1940
1941RETAIL SALES* (1935-1939Av. = 100)
DISTRICT (47 Firms)..................141 125 111
137
Atlanta..........................................................155 130
Birmingham................................................... 125 134
Nashville............................ ..........................123 122
New Orleans................................................. 129 109
RETAIL STOCKS
DISTRICT (21 Firms)........ ......... 83 83
78
87
Atlanta.................................... 159 162 141
167
Birmingham.............................. 76 76
76
80
Nashville................................. 64 60
60
66
New Orleans............................. 69 71
67
72
WHOLESALE SALES
TOTAL.............................. ............................76
72
Groceries....................... ............................... 65
64
Dry Goods....................... ..............................58
54
Hardware.:................................................... 150 132
Drugs.......................... ................................. 114 125
CONTRACTS AWARDED
DISTRICT......................................................120
78r
Residential.....................................................96
84r
Others................ ..... .................................137
74r
Alabama........................................................116
69
Florida................ -........................................ 60
62
Georgia........................................................ 214
54
Louisiana...................................................... 140 122
Mississippi.................................................... 275
90
Tennessee................... ....
228 109
BUILDING PERMITS
20 CITIES......................................................61
54
28
Atlanta.......................................................... 37
Birmingham.............................. ..................... 44
29
Jacksonville.................................................. 123
90
Nashville....................................................... 33
14
New Orleans.................................................. 52
26
PIG IRON PRODUCTION*
Alabama........ ......................... ..................... 122 136
COAL PRODUCTION (1935-1939Av. = 100)
TWO STATES........................... 21 146 1?
21
Alabama........................................................ 19 163
Tennessee........................... .......................... 25 152
COTTON CONSUMPTION*
3 STATES........................... .......................... 246 235
Alabama........................................................295 279
Georgia.................................. ...................... 227 221
Tennessee.............................. .......................230 188
EMPLOYMENT (1932Av. = 100)
SIX STATE........................... ....................... 147 146
Alabama........................................................156 159
Florida.................................. ....................... 120 124
Georgia.................................. ......................163 162
Louisiana...................................................... 134 130
Mississippi............ ........................................117 116
Tennessee............ ................. .......................141 140
PAYROLLS (1932Av. = 100)
SEX STATES....:............................................223 221
Alabama................................. ...................... 316 312
Florida..........................................................118 123
Georgia........................................................ 257 247
Louisiana............................... ...................... 167 167
Mississippi.................................................... 160 * 160
Tennessee.....................................................222 220
Mar.
ELECTRIC POWER PRODUCTION*
1941 1941
SDC STATES..................................................485 489r
Alabama.................................. .................... 682 705r
Florida.........................................................683 71lr
Georgia.................................. ..................... 254 254
Louisiana..................................................... 632 645r
Mississippi__ ........................ .......................112 118
Tennessee..................................................... 369 338
Statistics
(000 Omitted)
Apr. Mar.
1941
125
86
165
78
61
74
Apr.
1940
104
105
99
96
105
82
148
80
62
69
67
55
51
99
117
87
113
70
81
60
98
142
59
91
71
24
19
84
46
32
113
160
128
134
115
164
190
155
152
132
136
110
145
119
110
132
179
100
2(X)
145
144
169
Mar.
222
Feb.
1940
386
526
561
227
569
61
258
Apr, ,
Year toDate
COMMERCIAL FAILURES
1941
1941
1940
1941
1940
Number{Actual—not 1000's)
41
44
70
169
247
Liabilities.....................$ 958 $ 439 $ 829 $2,031 $2,615
Mar. Fet.
Mar.
Year to Date
FARM INCOME**
1941
1941
1940
1941
1940
SIX STATES................... 65,831 54,257
59,858 184,788 162,414
Alabama....................... 7,491
5,402
8,380
18,811 22,712
Florida.......................... 17,983
12,314
8,963
44,293 28,312
Georgia......................... 11,048
9,543
10,457
29,181 23,135
Louisiana....................... 8,325
6,533
8,418
24,059 21,605
Mississippi...................... 11,226
9,430
13,439
30,054 34,268
Tennessee.................... 9,758
11,035
10,201
38,390 32,381
‘Indexes of retail sales, electric power and pig iron production, and ol
cotton consumption are on a daily average basis.
‘‘Includes government benefit payments,
r = Revised.
28
M o n t h l y R e v ie w o f t h e f e d e r a l R e s e r v e B a n k o f A t l a n t a f o r M a y 1 9 4 1
m e m b e r b a n k s t h a t r e p o r t w e e k ly in
A s s ig n m e n t o f C la im s in d e f e n s e f in a n c in g
C o n tin u e d fr o m p a g e 25
a lm o s t e ig h t m o n th s . I t is in t e r e s t in g , t h e r e fo r e , to r e v ie w th e
e x te n t to
w h ic h
b an ks and
d e fe n s e
p r o d u c e rs h a v e
a v a ile d
th e m s e lv e s o f th e r ig h t to a s s ig n c la im s a g a in s t th e g o v e rn
m e n t a s s e c u r it y f o r lo a n s , a n d to k n o w s o m e th in g a b o u t th e
ty p e s o f c o n t r a c t a n d c o n t r a c t o r w h o s e c la im s a r e m o s t f r e
a d d it io n a l c o m m itm e n ts . O f 2 2 4
T h e A m e r ic a n
a c c o rd a n c e
w it h th e a s s ig n m e n t o f c la im s p r o v is io n , a n d , b y a m o u n ts , 4 3
p e r c e n t o f th e lo a n s a n d 4 1 p e r c e n t o f th e c o m m itm e n ts h a d
b e e n s o fin a n c e d .
B a n k e r s ’ A s s o c ia t io n m a d e a s u r v e y o f th e
to
d e te rm in e
th e
a m o u n t o f d e fe n s e
D is t r ic t ’ s w e e k ly r e p o r t in g b a n k s a r e fin a n c e d b y a s s ig n m e n t
o f c la im
in d ic a t e s t h a t th e g o v e rn m e n t’s s a n c t io n o f t h is p r o
lo a n s a n d c o m m itm e n ts to m a k e lo a n s o u ts ta n d in g a s o f M a r c h
c e d u re
has
3 1 . T h e s u r v e y s h o w e d t h a t , b y a m o u n t, 4 6 p e r c e n t o f th e
w h o se
lo a n s
h ave
been
lo a n s
d o u b t, h a v e
p e r m it te d .
been
r e fu s e d
by
lo a n s a n d c o m m itm e n ts in
T h e f a c t t h a t m o re th a n 4 0 p e r c e n t o f d e fe n s e lo a n s o f t h is
la r g e s t b a n k s
m ad e
D is t r ic t re p o rte d
a l l , 4 6 , o r a b o u t 2 0 p e r c e n t, h a d b e e n m a d e in
q u e n t ly a s s ig n e d .
n a t io n ’ s
t h is
$ 1 2 ,2 7 5 ,0 0 0 o f d e fe n s e lo a n s o u t s t a n d in g a n d $ 2 5 ,4 4 5 ,0 0 0 in
th e
la r g e
banks
in
t h is
D is t r ic t
had
been
fin a n c e d b y a s s ig n m e n t o f c la im s , a n d 6 7 p e r c e n t o f th e c o m
►T h e
m it m e n ts h a d b e e n so a r r a n g e d .
had
a v a ila b le
e f fe c t . S o m e , a t le a s t , o f th o s e
m ad e
upon
c r e d it
c o n tra c to rs
a s s ig n m e n t w o u ld , rto
had
a s s ig n m e n t n o t b e e n
d a ta d o n o t p e r m it v e r y p o s it iv e s ta te m e n ts
M o re r e c e n t ly , th e F e d e r a l R e s e r v e B a n k s h a v e c a lle d u p o n
a b o u t th e ty p e s o f c o n t r a c t a n d c o n t r a c t o r u s u a lly fin a n c e d
th o s e m e m b e r b a n k s t h a t r e p o r t w e e k ly to f u r n is h f ig u r e s o n
th ro u g h th e p r o v is io n s o f th e A c t . I n g e n e r a l, h o w e v e r, i t c a n
d e fe n s e
b e s a id th a t in t h is D is t r ic t t h a t ( 1 )
lo a n s
and
c o m m itm e n ts
as
of
A p r il
30.
The
22
th e la r g e r c o n t r a c t s a r e
m o re f r e q u e n t ly a s s ig n e d th a n s m a lle r c o n t r a c t s , t h a t ( 2 ) c o n
t r a c t s , a s w o u ld
D i s t r ic t S u m m a r y o f B u s in e s s C o n d it io n s
C o n tin u e d fr o m p a g e 25
w h o le th e B o a r d ’ s in d e x a d v a n c e d 3 p e r c e n t fr o m
b e e x p e c te d , a r e
m o re f r e q u e n t ly a s s ig n e d
w h e n th e a m o u n t o f th e c o n t r a c t is la r g e r e la t iv e to th e t o t a l
a s s e ts o f th e c o n t r a c t o r , a n d t h a t ( 3 ) s o m e b a n k s h a v e ta k e n
M a r c h to
a s s ig n m e n t o n m o s t o f t h e ir d e fe n s e lo a n s , ir r e s p e c t iv e o f p a r
t ic u la r
A p r il a n d w a s 4 5 p e r c e n t a b o v e th a t f o r A p r il 1 9 4 0 .
S t e e l m ill a c t iv it y in th e B irm in g h a m - G a d s d e n a r e a h a s b e e n
re p o rte d a t 9 5 p e r c e n t o f c a p a c it y s in c e M a r c h 1 . I n M a y la s t
c o n d it io n s , w h ile
o th e rs
h ave
ta k e n
a s s ig n m e n ts o n
n o n e o f t h e ir d e fe n s e lo a n s .
► T h e m a k in g o f lo a n s u n d e r th e A s s ig n m e n t o f C la im s A c t
y e a r th e r a t e a v e r a g e d 8 1 .5 p e r c e n t. I n th e U n it e d S ta t e s a s a
d e m a n d s a s h if t o f a tt e n tio n o n th e p a r t o f th e b a n k e r c o n s id
w h o le th e re p o rte d r a t e o f a c t iv it y d e c lin e d f r o m
10 0 p e r cen t
e r in g a c o n t r a c t o r ’ s a p p lic a t io n f o r f in a n c in g . I n m a k in g o r d i
f o r th e la s t w e e k in M a r c h a n d th e f ir s t w e e k in A p r i l to 9 4
n a r y c o m m e r c ia l lo a n s th e b a n k e r m u s t ju d g e th e w illin g n e s s
p e r c e n t f o r th e w e e k e n d e d M a y 3 , a n d ro s e th e f o llo w in g
a n d th e c a p a c it y o f th e b o r r o w e r to r e p a y , p a r t ic u la r ly i f th e
w e e k to 9 7 .5 p e r c e n t. T h e d a ily r a t e o f p ig ir o n p r o d u c tio n in
lo a n is u n s e c u re d b y s p e c if ic c o lla t e r a l, a n d h e m u s t ju d g e th e
A la b a m a
q u a lit y o f th e c o lla t e r a l i f th e lo a n is s e c u r e d . J u d g in g th e
d e c lin e d
1 0 p e r c e n t in
A p r il b u t w a s 8 p e r c e n t
a b o v e t h a t o f A p r i l 1 9 4 0 , w h e n o u tp u t w a s a t th e lo w e s t le v e l
c a p a c it y
o f th e y e a r . F o r m o re th a n tw o y e a r s A la b a m a o u tp u t h a s b e e n
o f th e b o r r o w e r ’ s a b ilit y
la r g e r e a c h m o n th th a n in
r e m u n e r a t iv e ly .
th e c o r r e s p o n d in g m o n th a y e a r
e a r lie r . F o r th e c o u n t r y a s a w h o le , th e B o a r d ’ s in d e x f o r A p r i l
w a s d o w n 4 p e r c e n t fr o m
M a r c h b u t 3 8 p e r c e n t a b o v e th a t
to
re p a y
in v o lv e s k n o w le d g e o n th e b a n k e r ’ s p a r t
to
p e r fo r m
th e c o n te m p la te d
ta s k
U n d e r th e a rr a n g e m e n ts m a d e p o s s ib le b y th e a s s ig n m e n t
o f c la im s p r o v is io n t h e r e is n o q u e s tio n — a s id e fr o m h o n e s ty
f o r A p r i l la s t y e a r . A c c o r d in g to T h e I r o n A g e , th e c o a l s t r ik e
o f p u rp o s e — o f th e b o r r o w e r ’ s w illin g n e s s to r e p a y , f o r th e
w a s r e s p o n s ib le f o r th e c lo s in g o f tw e n ty o f th e n a t io n ’ s f u r
T r e a s u r y ’ s p a y m e n ts a r e s e n t d ir e c t to th e a s s ig n e e , a n d u n d e r
n a c e s a n d a c o n s id e r a b le lo s s in
p r o d u c t io n . B e c a u s e o f th e
in t e r r u p t io n to m in in g o p e r a tio n s a t th e b e g in n in g o f A p r i l,
th e w e e k ly s ta te -
“ cnt« i3sued v
R e c o n n a is s a n c e
PER CENT DECREASE V PER CENT INCREASE
th e
B u re a u
o i
M in e s h a v e n o t in
c lu d e d
e s tim a te s
t h is t y p e o f fin a n c in g th e r e n e e d n o t a lw a y s b e s p e c if ic c o lla t
e r a l w h o s e q u a lit y
m u s t b e a s s e s s e d . M o r e o v e r , s a le
p r o b le m in m a k in g d e fe n s e lo a n s r e s t in g u p o n a n a s s ig n m e n t
o f th e c o n t r a c t o r ’ s c la im
C o n tra c tS : i M
i W
llllllllilllllll:
T e n n e ’sa^
m sa i n c e
M a r c h , w h e n p ro -
Cotton CoJF""“* " ..111...1111111... .
P ig I r o n P r o d u c t io n
*e
1 in
m o re th a n e le v e n
y e a rs . T h e ra te o f
E d u c t io n
e le c t r ic
E m p lo j
P a y «
B a n k !
B a n k L o a n s a z ^ il
e n ts
lin g n e s s to p e r fo r m
h is c o n t r a c t , f o r o n ly w h e n th e c o n t r a c t
20
10
20
Sixth District Statistics lor
April 1941 compared with April 1940
30
a g a in s t
it y
to p e r fo r m
a r e th e c o s ts a t w h ic h th e c o n t r a c t o r w i l l b e
a b le to o b t a in la b o r a n d s u p p lie s , a n d th e c o n t r a c t o r ’ s a b ilit y
to s o lv e h is t e c h n o lo g ic a l p r o b le m s o f in c r e a s e d o u tp u t o r o f
o u tp u t d iv e r t e d fr o m
►O u r
Bank
banker
re a d e rs
o f A t la n t a
p e a c e - tim e to w a r- t im e g o o d s .
w ill
r e c a ll
h a s p re p a re d
F e d e ra l
c ir c u la t e d
R e s e rv e
s ta te m e n ts o f
fr o m
e rn m e n t c o n t r a c t s . W h ile th e g o v e rn m e n t d o e s n o t s p e c if y a
th e
re c o rd
in
t h a t th e
and
th e p r o c e d u re to b e f o llo w e d
a s s ig n in g c la im s u p o n g o v
le v e l re p o rte d f o r
p a r t ic u la r fo r m
F e b ru a ry .
a n d p r o c e d u re w it h w h ic h n o t ic e o f a s s ig n m e n ts is to b e m a d e .
d u ced
10
p a r t , w il l th e re b e a c la im
th e g o v e rn m e n t. T h e p r in c ip a l f a c t o r s in th e p r o b le m o f a b il
p e r c e n t in M a r c h
W a t e r
d
D em and
30
pow er
o u tp u t d e c lin e d 1
a g a in s t th e g o v e rn m e n t m a in ly in
v o lv e s , t h e r e fo r e , ju d g m e n t o f th e b o r r o w e r ’ s a b ilit y a n d w il
h a s b e e n m e t, a t le a s t in
V V h o le s iiliP llilllllllllllllllllllllllig illll
o f th e
g o o d s a n d th e s e llin g p r ic e is a s u re d b e fo r e h a n d . T h e b a n k e r ’ s
c re a s e d ,
th e
p ro
pow er
d e s p ite
s h o rta g e
w a te r
in
s u p p ly .
of
o f a s s ig n m e n t, i t d o e s s p e c if y b o th th e fo r m
A d d it io n a l c o p ie s o f t h is B a n k ’ s s ta te m e n t o f p r o c e d u re m a y
b e o b ta in e d
u p o n r e q u e s t, a n d th e le g a l d e p a rtm e n t o f t h is
B a n k h a s u n d e rta k e n to a s s is t m e m b e r a n d n o n m e m b e r b a n k s
in
th e
p r o c e d u re
c o n tra c ts .
of
m a k in g
a s s ig n m e n ts
o rt
g o v e rn m e n t
P . T. - E. H .
@FedFRASER