Full text of Economic Review (Federal Reserve Bank of Atlanta) : May 31, 1945, Volume 30, Number 5

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N um ber 5

The New Orleans Tidewater Channel Project
u b l i c w orks projects, even w hen th ey are m ost d esirab le
from an econ om ic p oin t o f view , are freq u en tly m atters
o f o n ly lo c a l sign ifican ce. O cca sio n a lly , how ever, there is
p ro p osed a p roject w ith an econ om ic sig n ifica n ce that tran­
scends an y m erely lo ca l advantage to be d erived fro m its c o n ­
struction. Just such a p roject is now under con sid eration at
N ew O rleans. It is a p lan to con n ect the port o f N ew O rleans
w ith th e deep w ater o f the G u lf o f M exico b y m ean s o f a tid e­
w ater ch an n el. T h e effect o f o p en in g su ch a ch an n el w ou ld
be to alter the h isto rica l pattern o f th e p ort’s d evelop m en t to
the ben efit o f a ll persons u sin g the port d irectly or in d irectly .
T h e projected tidew ater ch an n el is sig n ifica n t b ecau se what
h ap p en s to the p ort o f N ew O rlean s is n ot m erely a m atter o f
lo c a l or even region al interest. It is a m atter o f n a tio n a l c o n ­
cern, as w e ll. N ew O rleans is not o n ly th e S ou th ’s la rg est city,
but it is a lso the n a tio n ’s secon d m ost im p ortan t port. A l­
th ou gh it lie s w ith in the S ixth F ed eral R eserve D istrict, o f
w h ich it is b y a ll odds the m ost im p ortan t port, N ew O rleans
serves and in tim a tely affects com m ercial interests over a very
w id e area.
G eo g ra p h ica lly , N ew O rlean s is situated near the m outh o f
w hat is p rob ab ly the w o rld ’s greatest river system . M ore than
1 5 ,0 0 0 m iles o f that system are n a v ig a b le w aterw ays. T he
area drained b y the M ississip p i R iver and its trib u taries com ­
p rises a p p ro x im a tely 1 ,2 4 0 ,0 0 0 square m ile s and con tain s
m ore than h a lf the n ation ’s p o p u la tio n and w ealth . F o r this
v ast territory reach in g fro m th e A p p a la ch ia n M ou n tains on
the east to the R ock y M ou n tain s on th e w est to fo rm the
h eartlan d o f th e continent, N ew O rlean s is a p ort o f v ita l im ­
p ortance. In order to h a n d le the stream s o f com m erce arisin g
in th e area or d estined fo r it, ad eq u ate p ort and term inal
fa c ilitie s had to be p rovid ed at N ew O rleans.
Such fa c ilitie s w ere provid ed in th e first in stan ce at w hat
is ca lle d the river-fron t harbor, fo r N ew O rlean s lie s in a
bend o f th e M ississip p i R iver som e 110 m ile s fro m its m outh.
T he c ity is reached b y a ch an n el v a ry in g in depth fro m so m e­
th in g in ex cess o f 35 feet to m ore than 2 0 0 feet in som e
p la ces. A t its narrow est p o in t w ith in the p ort th e river has
a w id th o f 2 ,0 0 0 feet.
D esp ite the vo lu m e o f com m erce p a ssin g th rou gh the port
o f N ew O rleans, the fa c ilitie s fo r h a n d lin g th is traffic re­
m ain ed alm ost rudim entary up to th e p resent century.
W harves and la n d in g s fo r the accom m od ation o f ocean and
river sh ip p in g w ere m o stly o f tem p orary con stru ction , and
th ey w ere u su a lly p rivately ow ned, alth o u g h con trol o f the
riv er fro n t w as vested in th e city as th e agen t o f th e state.
A fter th e C ivil W ar, w hen th e b u sin ess o f the p o rt had b e­



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gun to recover from the effects o f that stru g g le, th e city d is­
charged its o b lig a tio n s in d irectly b y lea sin g th e river fron t
to private interests. T he lea se w ent to th e b id d er p rom isin g
the la rg est exp en d itu re fo r th e b u ild in g and m ain ten ance o f
w harves.
P erm anent and su b stan tial d evelop m en t o f w h arves a lo n g
the river fron t, how ever, did not take p la c e u n til after the
turn o f th e p resen t century. D issa tisfa c tio n w ith th e private
lessees had le d to the creation o f a new state a g en cy in 1896.
T h is b od y w as th e B oard o f C om m issioners o f th e P ort o f
N ew O rleans, in w h ich con trol o f th e port w as vested . S in ce
the settin g up o f the board o f com m ission ers, th e river-front
w h a rf system h a s com e to extend in th e form o f an alm ost
con tin u ou s q u ay fo r a distance o f m ore than 10 m ile s alo n g
the le ft bank o f th e river. S lig h tly m ore than seven m iles o f
th is stretch are ow ned and op erated b y th e dock b oard, the
rem ainder b ein g w harves ow ned b y railroad s and other p ri­
vate interests. A ll to ld , the dock board has p rovid ed a total
w h arf fron tage o f 3 7 ,7 5 9 feet fo r th e accom m od ation o f sh ip ­
p in g a lo n g th e river. T h e to tal area o f th is system com prises
alm ost seven m illio n square feet, o f w h ich m ore than five
m illio n are covered space.
T hat a ll the w harves are o f th e quay ty p e, ly in g lo n g itu ­
d in a lly w ith the river, is a p ecu lia rity o f th e w h a rf system
at N ew O rleans. T he river its e lf m akes th is ty p e o f construc­
tion necessary. Steep banks and th e ex cessiv e depth o f the
w ater at o n ly short d istan ces fro m them m ake it im p racticable
to b u ild p iers in to th e river. I f slip s w ere dredged in to the
banks, on th e other hand, ex ten siv e and c o stly le v e e con ­
struction w o u ld b e essen tia l, and, in ad d ition , m ain tenance o f
the slip s w o u ld b e ex p en siv e b ecau se o f sh o a lin g resu ltin g
fro m the d ep o sit o f silt d u rin g p eriod s o f h ig h w ater.
A lth o u g h m ost o f the N ew O rlean s w harves are u sed fo r
the h a n d lin g o f g en eral cargo, som e o f them have been d e­
sign ed fo r the h a n d lin g o f sp ecific com m od ities such as coffee
and bananas and oth er green fru it. S p ecia lized storage f a c ili­
ties and u n lo a d in g eq u ip m en t are p rovid ed at such w harves.
In ad d ition to its w harves the state has p rovid ed a lo n g the
river fron t other, sp ecia lized fa c ilitie s fo r h a n d lin g certain
im p ortan t com m od ities. O ne o f these is th e p u b lic ly ow ned
cotton w areh ou se, o ccu p y in g 4 8 acres, 33 o f w h ich are
covered w areh ou se sp ace. W ith a storage ca p acity o f 4 6 1 ,8 5 6
h ig h -d en sity b a les, th is is o n e o f th e la rg est cotton w are­
h ou ses in th e w o rld . A t present, how ever, the fa c ility is under
lea se to th e U n ited States N avy.
A n oth er o f th e state’s enterp rises is th e p u b lic grain e le ­
vator, w ith a storage ca p a city o f 2 ,6 2 2 ,0 0 0 b u sh els o f grain.
Y et another fa c ility w as th e fo rm er p u b lic co a l and bulk-

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com m od ity h a n d lin g p la n t, w h ich w as d esig n ed fo r the
h a n d lin g o f bunker an d cargo co a l, su lp h u r, g ra v el, b au xite,
an d sim ila r m aterials. B ecau se o f a la ck o f sufficient ton n age,
h ow ever, th is p la n t h as b een d ism an tled , and th e site is now
leased to a sh ip rep air concern.
C onnections betw een a ll th e fa c ilitie s o f th e state and the
r a ilroad s en terin g the port are m ade b y w ay o f th e N ew O r­
lea n s P u b lic B elt R ailroa d . T h is road is a m u n ic ip a lly ow ned
u tility under the con trol o f th e P u b lic B elt R a ilro a d C om ­
m ission . B eg in n in g w ith 2 0 m iles o f track and o n ly one lo c o ­
m otive, th e railroad now h a s 1 1 8 , m iles o f track and 19
locom otives, six o f w h ich are D ie se l elec tric, and the rem ain ­
in g 13 steam -driven. T w en ty-tw o m ile s o f the road ’s trackage
are d o u b le m ain track, and a p p ro x im a tely 7 4 m ile s are yard
tracks and sid in g s.
T hrough the a ctiv ity o f the dock board, an o ld -fa sh io n ed

N E W

O R L E A N S ’P R O P O S E D

o f A t la n t a

river harb or h as b een con verted in to a m od ern and very
efficient p ort o f w o rld -w id e im p ortan ce. T h e d ev elop m en t o f
the river-fron t harb or, h ow ever, rep resen ted m er e ly the first
stage in the d ev elo p m en t o f th e p ort o f N ew O rleans. A
secon d p h ase b eg a n w ith th e d ig g in g o f a can al 5y2 m iles
lo n g to con n ect th e river w ith L ake P on tch artrain, ly in g
n orth o f the city.
Such a can al had b een un d er co n sid era tio n fo r m any years,
but not u n til 191 8 w as o n e a c tu a lly con structed. O rig in a lly
the id ea had b een to p ro v id e m e r e ly a w aterw ay fo r barges
and other sh a llo w -d ra ft v e sse ls b etw een th e river and the
lak e, w h ich is an arm o f th e G u lf o f M ex ic o . C onstruction o f
the canal how ever, w as p recip ita ted b y the p ro b a b le location
o f sh ip b u ild in g yard s a lo n g its b an k s in resp o n se to the de­
m and fo r a “ b rid ge o f sh ip s” d u rin g th e first w o rld w ar. T he
use o f the can al fo r su ch a p u rp o se n ecessitated in creasin g

N E W

O U T L E T

T O




/ ( (i
orgne\

Errol Is.

S o u th w e st

T H E

S E A
Pascagoula

Pass
Christian

New Orleans

fo r M a y 1945

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o f A t la n t a f o r M a y 1 9 4 5

th e d im en sion s o f the can al b ey o n d th ose first p la n n ed . S till
la ter the chan nel w as deep en ed fro m 25 feet to 30 feet. T he
bottom w idth w as 150 feet. A further w id en in g o f the can al
to from 500 to 600 feet w as con sid ered a fu tu re p o ssib ility .
B ecause the lev el o f the river at flood stage in the sp rin g
w as as m uch as 2 0 feet ab ove that o f Lake P on tch artrain , a
lo ck w as constructed to en a b le v e ssels to p a ss back and forth
b etw een th e can al and the river. T h is lock , lo ca ted 2 ,0 0 0 feet
fro m th e river and b u ilt o f rein forced concrete, was' 6 4 0 feet
lo n g and 75 feet w id e b y in sid e m easurem ent. T h e lo ck w as
p rovid ed w ith five sets o f gates, each driven b y a 57-h .p .
elec tric m otor. A t lo w w ater, a v essel d raw in g as m uch as
3 1 ^ feet c o u ld b e passed through the lock.
T h e w h o le can al p roject w as com p leted in 1 92 3 at a cost
o f a lm o st 2 0 m illio n d olla rs. From 1 9 2 4 onw ard there has
b een a con sisten t grow th in the u se o f the can al. A total o f
3 ,2 51 v essels w ith a ton n age o f 2 6 2 ,3 0 8 ton s traversed the
ca n al in 1 9 2 4 , w hereas th e num ber o f v e sse ls in 1 943 had
risen to 2 7 ,1 6 5 and the to n n a g e to 9 ,6 3 2 ,8 0 2 tons.
W ith th e co m p letio n o f th e can al tw o new u ses su ggested
th em selves. O n th e on e hand, the la n d th at h ad been acquired
on both sid es o f th e can al co u ld b e used as in d u stria l sites
fo r con cerns in a p o sitio n to b en efit fro m w ater-front lo ­
cation s. Such sites co u ld be p rovid ed n ot o n ly a lo n g th e m ain
can al bu t a lo n g an y latera ls that m igh t later b e connected
w ith it. In th is w ay the can al co u ld be m ad e th e a x is o f a
la rge in d u strial b asin . O n the other h and, th e can al co u ld
a lso b e d evelop ed as an in n er harbor b y th e b u ild in g o f
future w harves and term in al fa c ilitie s at th e site.

The Inner Harbor
Im m ed iately after the canal w as co m p leted steps w ere taken
to d evelop it a s an inner harbor. T h e first step in th is d i­
rection w as th e construction in 1 9 2 4 o f the G alvez Street
W h arf at a cost o f a p p roxim a tely 1.8 m illio n d o lla rs. T h is is
b y fa r the largest and m ost m odern o f a ll th e w harves under
th e con trol o f th e dock board. It is o f steel and con crete co n ­
stru ction , an d it h as a to ta l area o f 6 3 8 ,3 1 0 square feet,
4 7 6 ,0 0 0 o f w h ich are shedded. A sm a ller fa c ility , th e F lorid a
A venue W h arf, w ith a total area o f 8 1 ,6 2 4 sq u are feet, w as
constructed in 1942.
In ad d ition to th ese w harves, a com pact freig h t-h a n d lin g
u n it had been p lan n ed b y the board fo r con stru ction just
north o f F lo rid a A ven ue. T h is u n it w as to co n sist o f p iers
and s lip s that w ou ld p rov id e b erth in g sp ace fo r 2 0 vessels.
T h e p iers w ere d esign ed to carry three railroad tracks on the
w h a rf ap ro n s; to p rovid e covered sp a ce to a depth o f 2 0 0
fe e t; to accom m odate railro a d tracks in the rear; and, in the
ca se o f three o f the p iers, to a llo w 1 0 0 feet fo r th e b u ild ­
in g o f w arehouses. U n til the outbreak o f th e p resent w ar the
w ork had p rogressed no further than th e d red gin g o f the fou r
slip s.
D esp ite the advantages N ew O rlean s had b ecau se o f its
lo ca tio n on th e M ississip p i R iver and d esp ite th e p o ssib ility
o f d e v elo p in g a sp aciou s in n er harbor in the n e w ly co n ­
structed ca n a l, th e port n everth eless w as su b ject to certain
lim ita tio n s that tended to b ecom e m ore evid en t as the com ­
m erce o f th e port increased. In lo o k in g forw ard to the p o st­
w ar p eriod an d in p la n n in g fo r a furth er in crea se in co m ­
m erce, th e board w ill u n d ou b ted ly find these lim ita tio n s
m atters o f cru cial im portance.
A s fa r back as 3 0 years ago it w as ap p aren t to a ll in ­
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ha v e to sh ift fro m the river fro n t to so m e other lo c a tio n in
order to exp an d the port. T h e n ecessity fo r e m p lo y in g endto-end, qu ay-typ e w harves a lo n g th e river m ean t that they
w o u ld ev en tu a lly reach p o in ts b eyon d w h ich it w o u ld n ot be
eco n o m ica l to b u ild . C on sciou sn ess o f these p oten tial lim i­
tation s la y b eh in d th e p la n n in g o f th e in n er Harbor p roject.
W here w harves h ave to be strung out fo r m an y m iles a lo n g
a river bank, som e o f the in cid en ta l costs o f u sin g th e port,
such a s sw itch in g , tru ck in g, and h a n d lin g costs, are a lso
n e c essa rily h ig h er than th ey w o u ld b e otherw ise.
M oreover, th e co st o f m ain ta in in g w harves a lo n g the river
is in creased b ecau se o f river action. T h e varia tio n o f a p p ro x i­
m a tely 2 0 feet betw een the h igh - and low -w ater le v e ls o f the
river and the ex cessiv e sed im en tation th at o ccu rs d u rin g highw ater n ecessitate d red g in g s ilt fro m in fro n t o f th e w harves
p e r io d ic a lly and w a sh in g it dow n fro m b en eath th e w harves
w ith h o se lin es.
A lth o u g h the in n er h arb or esca p es som e o f th e lim ita tio n s
in herent in th e river harbor, it h a s on e serio u s h an d icap
o f its ow n, n a m ely , th e tim e and in co n v en ien ce in v o lv ed in
u sin g the lo ck . T he lock is ad eq u ate fo r presen t needs, but
a n y co n sid era b le in crease in the use o f th e ca n a l or in the
size o f v essels w o u ld tend to create serio u s co n g estio n , w h ich
w ou ld en ta il c o stly d ela y s to sh ip p in g .
B oth th e river harbor and th e in n er harb or are su b ject to
h a n d icap s im p o sed b y th e river. V e sse ls u sin g th e river and
th e p asses at its m outh encounter m an y u n certa in ties an d d e­
la y s b ecau se o f slo w d o w n s n ecessary to m ake turns, to n a v i­
g ate narrow sectio n s, to av o id m eetin g other v essels at critica l
p o in ts, to a v o id w avew ash a g a in st th e le v e e s and b ecau se o f
fo g s and the lo ss o f sp eed in fa c in g an o p p o sin g current
w hen g o in g upstream .

The Tidewater Channel
A s sp on sored b y th e N ew O rlean s T id ew ater D ev elo p m en t A s­
so cia tio n under th e v ig o ro u s lea d ersh ip o f its p resid en t,
L ester F. A lex a n d er, and su p p orted a lm o st u n a n im o u sly b y
lo c a l b u sin ess g rou p s and sh ip p in g orga n iza tio n s in the
M ississip p i v a lle y , th e tid ew ater ch an n el p ro ject em b od ies a
fu n d a m en ta lly sim p le p la n . W hat is p ro p o sed is a w aterw ay
that w o u ld h a v e a ch an n el depth o f 4 0 fe e t and that w ou ld
con n ect th e in n er harb or can al w ith the G u lf o f M exico by
w ay o f Lake B orgne, an arm o f th e G u lf.
S om e o f the gen era l ad van tages o f th e w aterw ay are im ­
m ed ia tely o b viou s. M an y m ile s w o u ld b e cut fro m th e d is­
tan ce betw een qu aran tin e and the deep w ater o f th e G u lf, and
the v icissitu d es o f th e o ld river route w o u ld be avoided. D i­
rect access to th e in n er h arb or w o u ld b e p o ssib le fo r th e la r g ­
est sh ip s w ith ou t th e n ecessity o f u sin g th e lock . O n ly one
d raw bridge w o u ld h a v e to b e passed. T h e p ro p o sed channel
w ou ld p ro v id e sufficient w ater fro n ta g e fo r a n y co n ceivab le
ex p a n sio n o f w harves and term in al fa c ilitie s in th e v isib le
future. T he e a sily recla im a b le m arsh lan d th rou gh w h ich the
p rop osed ch an n el w o u ld run co u ld offer sites fo r a vast in ­
d u strial d evelop m en t.
T h e p rop osed route fo r the tidew ater ch an n el p ossesses
another advantage o f co n sid era b le im portance; It w o u ld not
in v o lv e w h o lly n ew con stru ction sin ce it w o u ld fo llo w in part
th e route o f th e present In tracoastal W aterw ay. T h is w ater­
w a y in tersects the in n er harb or at a p o in t ab ou t 8 ,0 0 0 feet
n orth o f th e lo ck and p roceed s in an ea sterly d irection to the
R ig o lets about 2 6 m ile s aw ay. A fter fo llo w in g th is route fo r

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a p p ro x im a tely 2 0 m ile s the tid ew ater ch an n el w o u ld th en in ­
c lin e to th e righ t to m ake a d irect rou te th rou gh G rand Isle
P a ss to M ile 4 0. F rom th is p o in t it w o u ld b ear in a so u th ­
e a sterly d irection through Cat Isla n d C hannel to a p o in t ju st
north o f C handeleur L igh t. T he ov er-a ll len gth o f th e p r o ­
p o sed sh ip channel w ou ld be 6 2 .5 n a u tica l m iles.

Estimated Cost
B y fo llo w in g the route o f th e In tracoastal W aterw ay th rou gh
a lm ost a third o f its len g th th e tidew ater ch an n el w o u ld
n ecessitate o n ly th e d eep en in g o f th e e x istin g w aterw ay fro m
its present 15 fe e t to the p ro p o sed 4 0 feet an d th e w id en in g
o f th e ch an n el to p erh ap s 6 0 0 feet. A co n sid era b le am ou n t o f
ex cavation w o u ld th u s b e saved , and the co st o f th e p roject
co rresp o n d in g ly reduced.
E stim ates have been m ade o f the am ou n t o f ex ca v a tio n that
w ou ld b e required fo r the p ro ject as w e ll a s o f th e p ro b a b le
cost. T h e excavation estim ates h a v e b een based o n d eta iled
field sh eets o f the C oast and G eod etic S o ciety , and th e e sti­
m ates o f d red gin g costs h a v e b een b ased on in fo rm a tion
fu rn ish ed b y d red gin g con tractors w ho have w orked a lo n g th e
In tracoastal W aterw ay and on the ex p erie n c e o f th e U n ited
States C orps o f E ngineers.
F rom the in tersection w ith th e in n er harb or can al to a
p o in t 2 2 n au tical m ile s d istan t, an estim ated 1 3 2 ,3 4 6 ,5 0 5
cu b ic yards w o u ld have to b e excavated at a cost o f six cents
a cu b ic yard, or a total cost o f $ 7 ,9 3 4 ,7 9 0 . F rom th e 2 2 -m ile
p o in t to th e 4 7 -m ile p o in t an estim ated 1 0 9 ,9 9 0 ,2 9 1 cu b ic
yard s w o u ld h ave to be dred ged at a u n it cost o f sev en cents,
or a to ta l co st o f $ 7 ,6 9 9 ,3 2 0 . U p to that p o in t d red g in g w o u ld
b e done b y p ip e lin e. F rom the 4 7 -m ile p o in t to th e 6 2 .5 -m ile
p o in t d red gin g w o u ld be d o n e b y m ean s o f h o p p er dredges,
and it w o u ld in v o lv e th e m o v in g o f 4 2 ,7 2 8 ,1 7 5 cu b ic yards
at a cost o f 15 cents a cu b ic yard , or a to ta l co st o f
$ 6 ,4 0 9 ,2 2 6 . T h e total d red g in g cost w o u ld th erefo re am ount
to $ 2 2 ,0 4 3 ,3 3 6 . S in ce the estim ates o f cost a llo w $ 9 5 6 ,6 6 4 fo r
co n tin gen cies, the fin al over-a ll cost o f th e p ro ject is e sti­
m ated at 2 3 m illio n d o lla r s. W ith th e righ t o f w a y p rovid ed
b y lo c a l interests, the exp en d itu re o f such a sum b y the
G overnm ent on th is p roject w o u ld b e g rea tly o u tw eigh ed by
th e advantages that w o u ld accru e to th e en tire n a tio n .
N o r w o u ld m aintenan ce costs b e ex cessiv e. O f the 4 0 .5
m ile s b etw een th e R ig o lets and C handeleur L igh t, 15 .5 m iles
o f th e p rop osed ch an n el w o u ld lie in th e G rand Isle P a ss and
Cat Isla n d C hannel section s. T h ese sectio n s w o u ld b e v ir tu a lly
self-m a in ta in in g , fo r the con cen tration o f tid a l currents there
has scoured out a r e la tiv e ly d eep ch an n el. M oreover, sin ce
the currents w o u ld b e lo n g itu d in a l w ith th e ch a n n el, th ey
w ou ld tend to carry aw ay a n y so ft m aterial exca v a ted from
the bottom or sid es as a resu lt o f w ave action or other d is­
tu rb in g factors. T h e rem a in in g 2 5 m ile s o f th e stretch b e ­
tw een the R ig o lets and C handeleur L igh t w o u ld require the
d red gin g o f an estim ated 1 ,3 2 0 ,3 9 3 cu b ic yard s a year. For
that part o f the p rop osed ch an n el that w o u ld fo llo w the
In tracoastal W aterw ay, m ain ten an ce costs w o u ld p ro b a b ly
be but little m ore than th o se n ow n ecessary to m ain tain the
e x istin g w aterw ay. It has b een estim ated th at $ 1 5 0 ,0 0 0 a year
in ad d ition to the current m ain ten an ce cost o f th e Intra­
coastal W aterw ay w o u ld be sufficient to m ain tain th e w h o le
tidew ater ch an n el from the in n er harbor in N ew O rlean s to
th e G u lf o f M exico.
T h e

e c o n o m ic

v a lu e




o f

th e

t id e w a t e r

c h a n n e l,

lik e

th a t

o f

o f A tla n ta

fo r M a y 1945

a n y other im p rovem en t, is b est m easu red in term s o f cost
red u ction that can be effected b y its u se. F o r a sh ip tim e is
o f the u tm ost im p ortan ce, b ecau se tim e in v o lv e s ex p en se. N o
on e know s, o f course, ju st w h at th e h o u r ly cost o f op eratin g
an a v erage sh ip w ill be in th e p ostw ar p erio d , b u t $ 6 0 has
so m etim es b een assum ed as a fa ir estim ate. T h e savin gs in
sh ip ’s tim e that w o u ld be p o ssib le b y th e u se o f th e p rop osed
tidew ater ch an n el m ig h t th erefo re m ean im p ortan t savin gs
in d o lla rs.

Prospective Economies

In 1 9 4 0 th e to ta l n u m b er o f in b o u n d v esse ls fo r th e port o f
N ew O rlean s w as 2 ,1 0 5 . F rom th e reco rd s o f 1 ,7 7 0 o f these
sh ip s, a com p u tation ta k in g in to a ccou n t th e la st p ort o f c a ll
and sa ilin g sp eed h as b een m ad e o f th e n u m b er o f h ou rs that
w o u ld have been saved i f th ese 1 ,7 7 0 v esse ls co u ld have
entered th e p ort b y w a y o f th e tid ew ater ch a n n el. A sim ila r
c a lc u la tio n w as m ade fo r 8 9 5 outw ard b ou n d v essels. S av­
in g s o f tim e in th e ca se o f the in b o u n d sh ip s w o u ld have
am ounted to 1 ,6 3 8 h ou rs and in the ca se o f th e outbound
sh ip s to 6 6 2 h ou rs. M oreover, if 3 0 0 v e ss e ls en terin g or le a v ­
in g th e tid ew ater ch an n el h ad u sed th e in n er harb or an ad ­
d itio n a l sa v in g o f 1.5 h o u rs each w o u ld h a v e b een m ade.
W hat th e p o stw a r traffic th rou gh th e p ort o f N ew O rleans
w ill b e is a m atter o f sp ecu la tio n . A ssu m in g 4 ,2 1 0 v essels
in b ou n d w ith a lik e num ber ou tb ou n d and a lso assu m in g the
sam e d istrib u tion as in 1 9 4 0 w ith resp ect to sp eed and first
and la st p orts o f c a ll, it h a s b een c a lcu la ted th at th e tid e ­
w ater ch an n el w o u ld save a to tal o f 4 ,9 2 8 sh ip h ou rs. A t the
rate o f $ 6 0 an h ou r, th is sa v in g in tim e w o u ld am ount in
m on etary term s to $ 2 9 5 ,6 8 0 .
Other sa v in g s w o u ld a lso resu lt fro m th e u se o f th e p ro ­
p osed tidew ater ch an n el. O ne su ch eco n o m y w o u ld b e in
ch arges fo r p ilo ta g e . In tra v ersin g th e 6 2 .5 n a u tical m iles
fro m th e in n er harb or to th e G u lf o f M ex ic o , a p ilo t w ou ld
be on a ctiv e duty fo r le s s th an sev en h ou rs on th e average.
In g o in g fro m th e in n er harb or to the G u lf b y w ay o f the
lo ck and th e river rou te, a p ilo t is o n d u ty fo r m ore than
seven h ou rs. A t P ilo tto w n , m oreover, a sp e c ia l b ar p ilo t m ust
be taken on fo r th e rem ain d er o f th e trip to op en w ater. At
p resent th e ch arges fo r bar p ilo ta g e at th e p a sses o f the
M ississip p i R iver are $ 4 fo r each fo o t o f d raft fo r v essels
d raw in g m ore than 10 feet an d $ 3 .5 0 fo r v esse ls d raw ing 10
feet or less. T h e average d raft o f v esse ls u sin g th e river
p asses in 194 1 w a s ab ou t 2 2 feet. In th e p ostw ar1 p eriod it
w ill in a ll p r o b a b ility b e h ig h er. O b v io u sly , th erefore, p ilo t­
in g an average v essel th ro u g h th e tid ew ater ch a n n el w ou ld
cost ab ou t $ 9 0 less than p ilo tin g it b y w a y o f th e lock , the
river, and th e p asses. F or an a n n u al m ovem en t o f 1,156
v essels, th e sa v in g in p ilo t ch arges a lo n e w o u ld am ount to
$ 1 0 4 ,0 4 0 .
In a d d itio n a sa v in g w o u ld b e m a d e in th e cost o f in ­
su rin g v e sse ls and carg o es m o v in g th rou gh the tidew ater
ch an n el in co m p a riso n w ith th e co st o f in su r in g th ose m ov­
in g b y th e river route, w h ere m a rin e hazard s are m ore p ro ­
nou n ced . S a v in g s re su ltin g fro m a red u ction o f m arine risks
w o u ld tend to accru e in m an y w a y s, d irect and in d irect, to
the p e o p le o f th e w h o le cou n try.
E co n o m ies in tran sp ortation costs, h ow ever, w o u ld n ot be
th e o n ly eco n o m ies flo w in g fr o m th e u se o f th e tidew ater
ch an n el. If, th rou gh th e co n stru ctio n and u se o f such a w ater­
w ay, the b u lk o f th e p ort’s cargo h a n d lin g c o u ld b e con cen ­
trated at m o d e m w h arves and p iers in th e in n er harbor or

M

o n t h l y

R e v ie w

o f th e F e d e ra 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 1 9 4 5

a lo n g the sh ip chann el itse lf, im p ortan t sa v in g s c o u ld be
effected. T h ese w ou ld take the fo rm o f lo w er sw itch in g
ch arges, low er trucking ch arges to and fro m the barge
term in al on the can al, m ore eco n o m ica l stev ed o rin g , and less
co n fu sio n and conseq uent e x p en se a risin g fro m in terferen ce
b y v eh icu la r traffic on the w harves. Furtherm ore, th e constant
w ater le v e l in the tidew ater ch an n el w o u ld fa c ilita te th e d i­
rect m ovem ent o f m an y com m od ities fro m sh ip sid e tracks to
v essels. A t th e river harbor th e great v a r ia b ility in th e lev el
o f th e river n ecessitates b u ild in g the lo w est w harves at least
2 0 fe e t ab ove the low -w ater lev e l o f the river, thus putting
sh ip decks at v a ria b le h eig h ts ab o v e th e w harves. Such
variation s in terfere w ith lo a d in g and u n lo a d in g op eration s
and in crease the exp en se.
A dded together, th e variou s eco n o m ies that w o u ld be p o s­
sib le through th e u se o f a d irect tid ew ater con n ection betw een
the in n er harbor and the G u lf am ount to a co n sid era b le sum .
A ca refu l estim ate o f the m agn itu d e o f th ese savin gs m ade
by C olon el E llio t J. D ent, c o n su ltin g en g in eer to th e tid e ­
w ater a ssociation , p laces th e figure at m ore than 1.7 m illio n
d o lla r s a year.

Role in National Defense
A n other argum ent fo r the con stru ction o f the tidew ater
ch a n n el is th e p oten tial u sefu ln ess o f such an artery in the
in terest o f n ation al d efense. T he strategic lo ca tio n o f N ew
O rleans at a p oin t w here airw ays, h ig h w a y s, w aterw ays, and
ra ilw a y s con verge to m eet sh ip p in g lin es that spread their
netw ork a ll over th e g lo b e m akes th e c ity a lo g ic a l p la c e at
w h ich to set up bases in the postw ar p eriod fo r the servicin g
o f overseas estab lish m en ts o f the A rm y and N a v y . G iven a
d irect and eco n o m ica l ou tlet to the G u lf fro m th e inner
harbor, the lan d s abutting on the can al and on th e sh ip
ch an n el w o u ld afford id ea l lo ca tio n s fo r such su p p ly bases.
B oth in W orld W ar I and W o rld W ar II th e n ation has
m ade in ten siv e u se o f the port o f N ew O rleans as an a ssem b ly
p o in t fo r th e p rodu cts o f the M ississip p i v a lle y , as a m an u ­
fa ctu rin g and con struction center, and as a p ort o f em barka­
tion fo r troop s. S tatistics on the m ilita ry u se o f the port in
th e current w ar are o f cou rse not a v a ila b le to th e p u b lic. In
v iew o f the past, how ever, it is certain th at if, u n h a p p ily , the
n ation sh ou ld ever find its e lf en g a g ed in an oth er w ar on a
w o rld scale, N ew O rleans w o u ld again b e used as a m ajor
m ilita ry port. M ilitary n ecessity a lo n e, th erefore, w ou ld
seem to require the port to be as m odern and efficient as
p o ssib le. T he prop osed tidew ater ch an n el m ore than any
other th in g w ou ld contribute to that end.
W h en the state o f L ou isian a con nected the river w ith Lake
P on tch artrain b y d ig g in g the n a v ig a tio n can al, th u s creat­
in g at that p oin t both an in d u strial b asin and a sp a cio u s
in n er harbor, it la id the fo u n d a tio n fo r a new and m o d em
port w h ose benefits w ou ld b e fe lt b y com m ercia l in terests o f
h a lf th e n ation . T hat action , how ever, w as o n ly a b eg in n in g .
I f the fu ll benefit o f the state’s exp en d itu re is to b e realized ,
th e fu rth er step o f p rovid in g th e tid ew ater ch an n el is n eces­
sary. T h e estim ated constru ction and m ain ten an ce costs o f the
p ro ject are-m odest as expen d itu res now go. T he b en efits to be
d erived from such a sh ip chan n el p rom ise to b e g rea tly in
ex cess o f the cost. T hese benefits, m oreover, w o u ld be shared
in som e m easure b y every sh ip p er w ho is d irectly or in ­
d irectly dependent u pon th is port.
Earle L. Rauber



4 9

S ix th D is t r ic t In d e x e s
DEPA R TM EN T S T O R E S A L E S *
Adjusted**

D IS T R IC T ...............
Baton R o u g e ...
Birm ingham ____
C h a tta n o o g a ...
Jackso n...............
Jackso nville____
K n o x v ille ...........
M ontgom ery...
N ash ville............
N ew O r le a n s ...
Tam pa.................

U nadjusted

Apr.
1945

M ar.
1945

Apr.
1944

Apr.
1945

M ar.
1945

Apr.
1944

235
256
240
233
243
222
316
295
185
222
224
254
195
263

274r
288
305
238
262
274
361
326
263r
228r
289r
300r
260
308

221 r
224r
223r
231r
228r
208r
310r
283r
225r
209r
205r
245r
195
266r

228
245
238
206
230
229
297
277
199
226
226
246
203
280

281r
303
292
253
275
274
368
327
266r
286r
284r
315r
246
326

228
224r
229
214
225
219
299
276
246
212
214
243
206
290

D EPARTM EN T S T O R E S T O C K S
Adjusted**

D IS T R IC T ...............
Atlanta................
Birm ingham ____
M ontgom ery...
N a sh v ille ...........
N ew O r le a n s ...

U nadjusted

Apr.
1945

Mar.
1945

Apr.
1944

Apr.
1945

Mar.
1945

Apr.
1944

185
275
145
187
267
99

171r
268
132
177
257r
100

182r
231
137
193
252r
134

183
293
151
202
296
105

17,lr
274
136
187
267r
105

180r
246
142
209
280
142

C O TT O N CO N SU M PTIO N *

T O T A L .....................
A labam a............
G e o rg ia ...............
T e n n e sse e ........

C O A L PR O D U C TIO N *

Apr.
1945

Mar.
1945

Apr.
1944

Apr.
1945

Mar.
1945

Apr.
1944

155
161
155
130

162
172
158
141

153
157
154
127

95
95

163
171

165
174

95

i46

i52

C O N ST R U C T IO N C O N T R A C T S
April
M arch
1945
1945
D I S T R IC T ........................................
R e sid e n tial.................................

734
179
1,003
284
219
180
48
97
2,770

A lab am a.......................................
G e o rg ia .......................................
Lo u isia n a .....................................
M ississip p i.................................
T e n n e sse e ...................................

170
44
231
348
61
110
317
62
112

M A N U FA C T U R IN G
EM PLO YM EN T***

S IX ST A T E S ..........
A lab am a............
Flo rid a .................
G e o rg ia ..............
Lo u isia n a ..........
M ississip p i........
T e n n e sse e ........

Fu e l, e le c­
tricity,
and ic e ..
Home fur­
n ish ing s .
M iscel­
laneous. .

G A S O L IN E TA X
C O L L E C T IO N S

Fe b .
1945

Mar.
1944

Apr.
1945

Mar.
1945

Apr.
1944

147
.175
146 •
138
154
137
131

152r
184
154r
141 r
159r
141r
,133r

160
188
181
150
167
146
138

104
115
108
107
94
94
104

95
97
94
91
91
81
113

104
106
98
101
99
98
125

E L E C T R IC P O W E R P R O D U C TIO N *

M ar.
1945

Fe b .
1945

M ar.
1944

13'1
143
141
114

131
144
141
114

127
139
135
114

109

109

109

141

141

126

129

127

123

C R U D E P E T R O LEU M P R O D U C T IO N
IN C O A S T A L LO U IS IA N A AND
M ISSIS SIP P I*

U n a d ju ste d ..
A d ju s te d * *...

113
79
130
ai
150
119
133
65
2J

M ar.
1945

C O S T O F L IV IN G

A L L IT E M S ..
F o o d ..........
C lo t h in g ...

April
1944

Apr.
1945

Mar.
1945

Ap r.
1944

207
203

207
207

197
194

Mar.
1945
S IX S T A T E S ...
H ydro­
generated.
F u e l­
generated.

Fe b .
1945

Mar.
1944

284

287

260

303

274

285

260

305 .

228

A N N U A L R A T E O F TU R N O V ER O F
DEM AND D E P O S IT S

U n a d ju ste d ...
A d ju ste d **.-...
In d e x **.............

Apr.
1945

M ar.
1945

Apr.
1944

14.5
14.7
56.8

15.2
15.6
60.2

16.9
17.2
66.4

*D aily average basis
**Adjusted for seasonal variation
***1939 monthly a v e ra g e = 100; other
indexes, 1935-39= 100
r = R e v is e d

M

5 0

o n t h l y

R e v ie w

o f th e F e d e ra l R e s e rv e B a n k

o f A t la n t a

fo r M a y 1945

International House at New Orleans
H ou se in th e heart o f N ew O rlean s’ b u sin ess
d istrict is an in stitu tio n fo u n d ed u p o n a fa c t that is too
o ften obscu red o r en tirely fo rg o tten in eco n o m ic d iscu ssion .
E con om ic rela tio n sh ip s are freq u en tly and alm o st e x c lu siv e ly
th ou gh t o f in term s o f th e in te r p la y o f vast im p erson al
fo rces. W hat is e q u a lly true, h ow ever, is that eco n o m ic re­
la tio n s are, at bottom , o n ly rela tio n s o f m en to on e another.
T h e sh a p e o f econ om ic fo rces, th erefore, is b ound to b e d e­
term ined to a sig n ifica n t degree b y th e sp irit an d attitudes
w ith w h ich m en enter in to r ela tio n sh ip s w ith th eir fe llo w s.
F u n d am en tally, the p u rp o se o f the m en w ho h a v e sp o n ­
sored In tern ation al H ou se h as been to create in N ew Or­
lean s — on e o f th e m ost co sm o p o lita n p ort cities in the
cou ntry — an in stitu tio n d ed icated to th e cu ltiv a tio n o f good
w ill, m utual u n d erstan d in g and respect, n eig h b o r ly h e lp fu l­
ness, and p erson al frien d lin ess betw een th e p e o p le o f the
U nited States and th e n a tio n a ls o f oth er cou n tries.

I

n te r n a t io n a l

Organization and Activities
T h e id ea fo r such an in stitu tio n orig in a ted in the m in d s o f
a sm a ll grou p o f p u b lic-sp irited N ew O rlean s citizen s. In the
cou rse o f a few m on ths th is group had grow n into an or­
ga n ization co m p risin g execu tiv e officers o f m an y N ew O rleans
and M ississip p i v a lle y b u sin esses and in stitu tio n s. T h ese m en
represented steam sh ip , b arge, air, m otor, and ra il tra n s­
portation a g en cies; fin an cia l and com m ercial co n cern s; ed u ­
cation al in stitu tio n s; and govern m en tal b od ies. In a d d ition
to these w ere other p rom in en t citizen s and p ro fe ssio n a l m en.
In ord er to carry out th e id ea o f th e p rojected in stitu tio n ,
fu n d s w ere raised fro m fo u r c la sses o f m em b ersh ip . T he first
o f these cla sses w as th at o f fo u n d er m em bers. Founder
m em bers are th ose w ho have con tributed $ 1 ,0 0 0 or m ore
to the project. T h ese m em bers, in ad d itio n , p a y $ 7 5 a n n u a lly
in dues. S u sta in in g m em b ers p a y an n u al dues o f $ 2 5 0 , and
active m em bers $ 7 5 . N o n resid en t m em bers, co n sistin g o f
th ose w ho liv e m ore than 50 m iles fro m N ew O rlean s and
w ho do n ot w ish to b ecom e a ctiv e m em bers, p a y $ 5 0 a year
as dues. F o reig n n on resid en t m em bers p a y $ 2 5 a year. So
far, alm ost $ 5 0 0 ,0 0 0 has b een raised fo r ca rry in g on the
w ork o f the organ ization . In tern ation al H ou se is a n on p rofit
corp oration , w h ose affairs are m an aged b y a b oard o f d i­
rectors that w ill ev en tu a lly num ber 100. A t present, 68
p la ces on th is board have been filled .
In ad d ition to receiv in g th e co-op eration and su p p ort o f
lo ca l groups and in d iv id u a ls, the p u rp oses and p rogram o f
In tern ation al H ou se a lso h a v e the official ap p ro v a l and en ­
d orsem ent o f th e State D epartm ent and th e Office o f InterA m erican A ffairs. In tern ation al H ou se w ill w ork in the
clo sest co-op eration w ith these govern m en tal a g en cies, w h ich
w ill h ave a residen t represen tative located in th e in stitu tion .
C lose contact w ill a lso b e m ain tain ed w ith th e official rep re­
sentatives o f other countries. Ind eed , h o n o ra ry m em bership
in Internation al H ou se is exten d ed to each cou n try’s con su lar
representative accred ited to N ew O rlean s.
T he sp ecific a ctiv ities b y w h ich In tern ation al H ou se h o p es
to ach ieve its p u rp oses are m an y and varied . B u sin essm en
and d istin gu ish ed v isito rs fro m abroad w ill b e w elco m ed and
assisted accord in g to th eir n eed s. C ontacts w ill be arranged
fo r such guests w ith p e o p le o f th eir own cou n try or w ith



U n ited S tates citizen s o f lik e in terests. A lth o u g h In tern ation al
H ou se w ill e n g a g e in no d irect tra d in g , a p la n n ed program
fo r th e d evelo p m en t o f ex p o rt and im p o rt b u sin ess betw een
M ississip p i v a lle y con cern s and th o se o f oth er cou n tries w ill
b e set up. T he ex ch a n g e o f stu d en ts b etw een c o lle g e s in this
v a lle y sectio n o f the U n ited S tates and fo r e ig n cou n tries w ill
be en cou raged and aid ed . T h e p rogram co m m ittee o f Inter­
n a tio n a l H ou se w ill arran ge fo r the r eco g n itio n o f the s ig ­
n ifican t h o lid a y s and an n iv ersa ries o f other n ation s, and co ­
op eration in in tern a tio n a l sp orts even ts and in a ll p rojects
that tend to p rom ote cu ltu re and scien ce w ill b e encouraged .

Facilities
In order to h o u se its a c tiv ities p r o p er ly In tern ation al H ou se
pu rch ased a n in e-storied fo rm er b ank b u ild in g at the co m er
o f G ravier and C am p Streets. T h is b u ild in g is n ow in the
cou rse o f b ein g rem od eled to m ak e it a p p rop riate to its
fu n ctio n . It w ill be op en ed fo r u se on or ab ou t June 1 o f
th is year.
A t least three stories o f the b u ild in g w ill be u sed to p ro ­
vid e clu b h o u se fa c ilitie s fo r fo r e ig n gu ests. O n th ese floors
w ill b e offices, a lib ra ry , c o n feren ce room s, an in form ation
center, a co m fo rta b le lo u n g e, an d an a sse m b ly h a ll su itab le
fo r lectu res and la rg e grou p m eetin g s h e ld in * c o n n ectio n
w ith in tern a tio n a l affairs. In a d d itio n to th e m ain d in in g
room th ere w ill a lso b e five p riv a te d in in g room s, and the
cu isin e w ill b e o f such e x c e lle n c e as N ew O rleans is p ar­
tic u la r ly fitted to p rovid e. A co m p reh en siv e lib ra ry o f cu r­
rent p erio d ic a ls and film s w ill be m a in ta in ed fo r th e u se o f
an y o n e w h o m ay n eed such a service. T h e u p p er floors w ill
b e lea sed , and the ren tals d eriv ed fro m th em are exp ected to
go fa r tow ard m a k in g the b u ild in g p a y fo r itse lf.
T h e m a n a g in g d irector o f In tern a tio n a l H ou se, J. Stanton
R ob b in s, has tra v eled w id e ly in E u rop e and L atin A m erica.
H e w ill h a v e under h is su p erv isio n a staff w h ose p erson n el
w ill in c lu d e c a p a b le lin g u ists fo r th e co n v en ien ce o f fo reig n
gu ests. S ten o g ra p h ic and c ler ic a l serv ices in th eir ow n
la n g u a g es w ill a lso be a v a ila b le fo r fo r e ig n b u sin essm en.
A lth o u g h th e perm an en t h o m e o f th is u n iq u e N ew O rleans
in stitu tio n h as n o t y et b een fo r m a lly op en ed , In tern ation al
H ou se its e lf w as presen ted to th e w o r ld on Jan u ary 2 8 , 1944,
b y w ay o f a n ation -w id e rad io h ook u p w ith short-w ave relay
to fo r e ig n cou n tries. On th is b road cast N e lso n R o ck efeller, c o ­
ord in ator o f In ter-A m erican A ffa irs, an d G eorge M essersm ith,
U n ited States A m b assad or to M ex ico , en d orsed In ternation al
H ou se w h o leh ea rted ly . A n en th u sia stic resp o n se to the project
w as a lso evok ed in th e p ress, b oth lo c a lly and n a tio n a lly . If
In tern ation al H ou se co u ld arou se su ch in terest w hen its w ork
w as eith er ju st in the p la n n in g stag e or w as b ein g carried on
under th e h an d icap o f a lack o f quarters, o w in g to w ar con ­
d itio n s, it w ill p ro b a b ly com m an d s till w id er in terest w hen
its p rogram is fu n c tio n in g sm o o th ly in a perm anent hom e
characterized b y b eau ty, co m fo rt, an d con v en ien ce. Indeed,
th is in terest m a y be ex p ected to sp read to b u sin esses th rou gh ­
out the w h o le area trib u tary to the p ort o f N ew O rleans. H ere
if anyw here b u sin essm en w ill h a v e an o p p o rtu n ity to h elp
convert the so -ca lled “ g o o d n eig h b o r p o lic y ” fro m an ab ­
straction o f G overnm ent p o lic y in to the liv in g tissu e o f
hum an rela tio n s.

M

o n t h l y

R e v ie w

o f th e F e d e ra l R e s e rv e B a n k

A d d itio n s

to

o f A t la n t a

P a r L is t

M ay tw o nonm em ber banks w ere added to the
F ederal R eserve P ar L ist in the S ix th F ed eral R eserve
D istrict.
E ffective M ay 8 the G uaranty Bank and T rust C om pany,
L afayette, L ou isian a, w as added to the F ed eral R eserve P ar
L ist and w ill rem it at par fo r a ll checks draw n a g ain st it
and routed fo r c o llectio n th rou gh th e N ew O rleans Branch
o f the F ed eral R eserve Bank o f A tlan ta.
T h is bank w as organized in 193 7 and o p en ed fo r b u sin ess
on Septem ber 11 o f that year. A t th e c lo se o f b u sin ess D e ­
cem ber 3 0, 1944, its d ep osits exceed ed $ 4 ,9 0 0 ,0 0 0 ; its ca p ital
w as $ 1 0 0 ,0 0 0 ; and its su rp lu s, u n d ivid ed profits, and re­
serves am ounted to m ore than $ 1 3 0 ,0 0 0 .
T. L. E vans is p resid en t; L. P . D eB la n c is v ice p resid en t;
P . R. D u p le ix is c a sh ie r ; G. J. G uidroz and G eorge A rceneaux
are assistant cash iers; and F. X a v ier M outon is attorney. In ­
clu d ed in the board o f directors, in ad d itio n to M essrs.
E vans, D eB la n c, and M outon, are: J. E dw in B utcher, M ike
D o n lo n , E lm o H od ges, D r. L. B. L ong, S id n ey M outon, M rs.
Isid o re P rejean , and G eorge H . T hom as.
A noth er nonm em ber bank to go on th e P a r L ist d u rin g the
m onth o f M ay w as the C om m ercial B ank and T rust C om ­
p any, Jackson, M ississip p i. T h is bank began rem ittin g at par
on M ay 2 5 fo r a ll checks drawn a g ain st it w hen subm itted
th rough the N ew O rleans B ranch o f the F ed eral R eserve
Bank o f A tlanta. T he bank w as o p en ed fo r b u sin ess in J u ly
1937.
Officers o f the bank are: C harles H . R u sse ll, p resid en t;
W . P . M cM u llan, execu tive v ice p resid en t; D . L. W illia m s,
v ic e p resid en t an d trust officer; C harles A . M cF adden, a s­
sistan t v ice p resid en t; W arn ie C. K en n in gton , ca sh ier; and
H . H . M itch ell, assistan t cashier.
T he directors o f the bank are M. S. C onner, S im F. K in g,
C. H . R u ssell, J. T. W illia m so n , A . M . T isd a le, D . L. W il­
lia m s, W . P . M cM ullan, W . D . L ow e, and T . E. W right.
T he C om m ercial Bank and T rust C om pany at the c lo se o f
1 9 4 4 had ca p ita l o f $ 1 0 0 ,0 0 0 , su rp lu s and p rofits o f $ 1 0 4 ,0 0 0 ,
an d d ep o sits o f $ 6 ,6 8 1 ,0 0 0 .
In ad d ition to th e C om m ercial B ank and T rust C om pany,
Jackson is served b y th e C apital N a tio n a l B ank in Jackson,
the D ep o sit G uaranty Bank and T rust C om pany, and the
Jackson-State N a tio n a l Bank. Jackson now h as no nonpar
clea r in g bank.
A ll banks that are m em bers o f th e F ederal R eserve System
are required to be on the P ar L ist. S uch banks in the S ixth
F ed eral R eserve D istrict at p resent num ber 31 9 . In ad dition
to th ese m em ber banks, there are n ow in th e D istrict 108 n o n ­
m em ber p a r-clearin g banks o f w h ich 7 7 clea r d irect and 31
clear in d irect. D irect-clearin g banks agree to rem it p ro m p tly
in im m ed ia tely a v a ila b le fu n d s fo r a ll cash letters forw arded
to them b y the F ederal R eserve Bank. T he in d irect-clearin g
banks clea r at par through corresp on d en t banks.
T he n on m em ber p ar-clearin g banks are u n ev en ly d is­
tributed in th e states or p ortion s o f states w ith in th e D istrict.
A s fo r the three states that lie w h o lly in th e D istrict, A la ­
bam a has 8 nonm em ber par-clearin g banks, F lo r id a h as 2 8 ,
and G eorgia has 2 2. W ith respect to th e p ortion s o f the three
states that m ake up th e rem ainder o f th e D istrict, L ou isian a
h a s 3 nonm em ber par-clea rin g banks, M ississip p i has 1,
and T en n essee has 4 6.

D

u r in g




fo r M a y 1945

5 1

S ix th D is t r ic t S ta t is t ic s
CO N D IT IO N O F 20 M EM BER B A N E S IN S E L E C T E D C IT IE S
(In Thousands of Dollars)

M ay 16
1945

Apr. 18
1945

M ay 17
1944

PerC en t C hang e
M ay 16, 1945. from
Apr. 18
1945

M ay 17
1944

Loans and investm ents—
1,825,699 1,821,206 1,522,055
322,185
319,751
294,896
Loans— total...........................
Com m ercial, industrial,
184,494
186,657
172,750
and agricultural lo a n s. .
Loans to brokers and
dealers in se cu rities. . . .
8,409
7,759
5,826
Other loans for pur­
chasing and carrying
se cu rities...........................
36,308
35,192
23,398
25,917
Real estate lo a n s.................
24,561
26,748
Loans to b a n k s.....................
1,623
1,817
724
Other lo a n s...........................
65,278
63,921
65,450
Investments— total............... 1,505,948 1,499,021 1,227,159
U. S. direct o b lig a tio n s... 1,366,030 1,362,916 1,092,329
Obligations guaranteed
by U. S ...............................
6,192
6,192
25,358
Other se cu rities...................
129,913
133,726
109,472
R eserve with F. R. B a n k .. . .
357,074
346,596
297,433
28,349
C a sh in v a u lt...........................
27,636
25,143
Balances w ith domestic
b a n k s.....................................
152,143
148,059
160,432
Demand deposits— adjusted 1,269,607 1,229,632 1,073,049
Time deposits...........................
364,897
357,014
273,078
U. S. G ov't d ep osits..............
121,881
146,805
136,277
Deposits of dom estic b a n k s. 499,927
505,977
427,049
200

0
1

+ 20
+ 8

—

1

+

+

8

4- 44

+
—

— 3

7

— 5
+ 12
+ 2
+ o
+ o

+
—
+
—
+
+

50
8
151
0
23
25

0
3
3
3

—
+
+
+

76
22
20
10

+ 3
+ 3
+ 2
— 17
— 1

—
+
+
—
+

5
18
34
11
17

+
+
—

D E B IT S T O IN D IV ID U A L BAN K A C C O U N T S
(In Thousands of Dollars)

P lace

A LABAM A
A n n isto n............
B irm in g h am .. . .
Dothan ................
G a d sd e n ............
M ob ile ................
M ontgom ery. ..

No. of
B anks
Report­
in g

Per C ent C hange
Apr. 1945 from

Apr.
1945

Mar.
1945

Apr.
1944

3
3
2
3
4
3

16,037
190,844
5,583
9,781
103,173
36,015

19,891
204,624
8,010
11,010
124,035
40,280

16,330
167,027
6,186
9,265
102,415
34,361

—
—
—
—
—
—

19
7
30
11
17
11

— 2
+ 14
— 10
+ 6
+
1
+ 5

Mar.
1945

Apr.
1944

FL O R ID A
Jackso nville. . . .
M iam i...................
G reater
M iam i*............
O rlan d o ..............
P e n sa co la ..........
St. P etersb u rg ..
Tam pa.................

3
6

170,029
138,137

191,739
159,908

159,991
123,712

— 11
— 14

+ 6
+ 12

10
2
3
3
3

197,229
35,507
23,113
30,523
85,222

219,872
39,562
25,580
32,394
89,846

170,718
28,340
22,401
25,334
78,709

— 10
— 10
— 10
— 6
— 5

+ 16
+ 25
+ 3
+ 20
+ 8

G E O R G IA
A lb a n y ................
A tlanta................
A u g u sta ............
B ru n sw ick ........
C o lu m b u s..........
E lb erto n ............
M acon................
N ew n an ............
Sa v an n ah ..........
V a ld o sta ............

2
4
3
2
4
2
3
2
4
2

8,845
457,599
34,042
11,955
33,718
1,744
37,401
4,854
87,518
6,637

10,041
514,895
40,231
15,366
36,242
2,040
44,010
5,759
87,330
7,097

8,540
428,895
33,305
13,404
32,696
1,875
37,920
4,318
76,410
5,924

—
—
—
—
—
—
—
—
+
—

12
U
15
22
7
15
15
16
0
6

+ 4
+ 7
+ 2
— 11
+ 3
— 7
— 1
4- 12
+ il5
+ 12

L O U IS IA N A
Baton Rouge. ..
Lake C h a rle s. ..
N ew O rle a n s . ..

3
3
7

43,026
15,391
406,537

42,926
17,547
446,086

38,546
22,805
386,257

-f* 0
— 12
— 9

+ 12
— 33
+ 5

M ISSIS SIP P I
H a ttie sb u rg ... .
Jackso n..............
M eridian ............
V ic k s b u rg ........

2
4
3
2

11,497
58,228
16,405
15,142

13,136
70,873
18,472
18,807

12,091
52,148
14,838
17,027

—
—
—
—

12
18
11
19

— 5
+ 12
+ 11
— 11

TEN N ESSEE
C hattanooga. . .
K n o x v ille ..........
N ash ville ..........

4
4
6

83,112
120,697
172,973

91,274
135,291
177,771

77,016
94,926
154,848

— 9
— 11
— 3

■
+■ 8
+ 27
+ 12

S IX T H D IS T R IC T
32 C it ie s ............

114

2,471,285

2,742,073

2,287,860

— 10

+

74,131,000

81,068,000

66,719,000

—

+ 11

U N ITED S T A T E S
334 C it ie s ..........

* Not included in Sixth District total

9

8

5 2

M

N e w

o n t h l y

C h e c k R o u tin g

R e v ie w

o f th e F e d e ra l R e s e rv e B a n k

S y m b o l

F or

som e years past th e A m erican B ankers A sso cia tio n and
th e F ed eral R eserve B anks h ave b een w o rk in g to geth er to
d ev elo p a p la n that w ou ld fa c ilita te the so rtin g o f check s fo r
c o lle c tio n th rou gh the F ed eral R eserve System . A d escrip tion
o f th e p la n that h as been d ecid ed u p on h as b een sent b y the
A m erican B ankers A sso cia tio n to a ll b anks in the U n ited
States.
F or m an y years each bank h as b een a ssig n ed an A B A
tran sit num ber, to b e prin ted u p o n its checks. T h is tran sit
num ber in d ica tes, first, th e c ity o r state in w h ich the b ank is
lo cated and, n ext, the p articu la r bank, a cco rd in g to th e A B A
N u m erical K ey S ystem . In th e case o f th o se banks lo ca ted in
w hat w ere o r ig in a lly reserve c itie s th e tran sit num ber in d i­
cates the city , and in th e case o f th o se banks lo ca ted ou tsid e
o f such c ities th e tran sit num ber in d ica tes the state. F o r e x ­
am p le, on checks o f the F ed eral R eserve Bank o f A tlan ta w ill
b e fou n d th e tran sit num ber 6 4 -1 4 . T h e 6 4 is u sed b y a ll
b anks in G eorgia ou tsid e o f th e c ity o f Savannah, w h ich as
on e o f the o r ig in a l reserve cities h as a sp ecia l p refix n u m ­
ber o f 3 8. F o llo w in g the dash in th e tran sit sy m b o l com es
the num b er that is assign ed to th e in d iv id u a l bank, that fo r
the F ederal R eserve B ank o f A tla n ta b ein g 14.

NO____________ ATLANTA, GA------------------------------------- 194-----

FIFTH NATIONAL BANK
PAY TO THE
ORDER OF

W 1

____________________________________$------------__________________________________DOLLARS

SPEC IM E N

T he n ew p la n con tem p lates that th e present tran sit n u m ­
ber and a new rou tin g sy m b o l w ill b e com bined in th e form
o f a fra ctio n and that, fo r the sak e o f u n ifo rm ity , th is com ­
bined transit num ber and ro u tin g sy m b o l w ill b e printed in
th e u p p er right-hand corner o f th e checks o f a ll banks
w h ose checks are c o lle c tib le through the F ed eral R eserve
Banks. T h e tran sit num ber w ill b e the u p p er part o f the
fraction , and b elo w the lin e w ill b e th ree or fo u r figu res in ­
d ica tin g the F ed eral R eserve D istrict in w h ich th e draw ee
bank is located , the head office or branch o f th e F ed eral R e­
serve Bank to w h ich th e check is to b e forw arded, and the
a v a ila b ility o f th e fu n d s, w hether im m ed iate or deferred. T he
sy m b o ls fo r banks in F ed eral R eserve D istricts num bered 1
through 9 w ill con tain th ree figures, and th o se fo r ban k s in
D istricts num bered 10, 11, and 12 w ill n ecessa rily contain
fo u r figures.
T h e acco m p a n y in g sp ecim en-check d raw in g con tain s the
new com b in ation sy m b o l inserted on a check o f an im agin ary
F ifth N a tio n a l B ank o f A tlan ta. T h e p resen t im agin ary
transit num ber form s th e u p p er part o f the sy m b o l. T he
lo w er part o f the sy m b o l reads 6 1 0 . In th is figure, the 6 in ­
dicates that th e draw ee bank is lo ca ted in the S ix th F ederal
R eserve D istrict, th e 1 m ean s that the draw ee bank is in that



o f A t la n t a

fo r M a y 1945

zone o f the S ixth D istrict served b y the h ead office o f the
A tlan ta F ederal R eserve B ank, and the 0 m ean s that the bank
is in a F ed eral R eserve city and that th e fu n d s represented
b y the check are a v a ila b le im m ed ia tely u p o n receip t o f the
check at the A tla n ta F ed eral R eserve Bank. Checks draw n
u p on banks in cities w here th e A tla n ta F ed eral R eserve Bank
h as branches w ill bear these sy m b o ls, th e 6 in each instance
rep resen tin g the S ix th D istrict, the seco n d figu re represent­
in g the branch city, and the third in d ica tin g im m ediate
a v a ila b ility o f fu n d s: B irm in gh am 6 2 0 , J a ck so n v ille 630,
N a sh v ille 6 4 0 , N ew O rlean s 65 0 .
T he first tw o d ig its in th ese figu res are to b e used in the
sy m b o ls on checks o f banks located in these resp ective zones.
T he last d ig it in th e figure, if a 0, w ill in d ica te that the
draw ee bank is located in A tla n ta or in a branch city and
fu n d s to cover th e check are im m ed ia tely a v a ila b le. But if
th e last d ig it is 1, or som e other figure, it w ill m ean a de­
ferred credit and in d icate the lo ca tio n , ou tsid e the F ederal
R eserve Bank or branch city , o f the draw ee bank. Banks
in that part o f southeastern A la b a m a served b y the head
office o f th e F ed eral R eserve Bank o f A tlan ta w ill u se the
sym b ol 6 1 1 , banks in G eorgia ou tsid e o f A tlan ta w ill use
6 1 2 , and banks in C hattanooga w ill u se 6 1 3 . Banks in the
part o f A lab am a served b y th e B irm in gh am B ranch w ill use
sym b ol 6 2 1 , banks in F lo rid a ou tsid e o f J a ck so n v ille w ill
use 6 3 1 , and banks in th e S ix th D istrict part o f T ennessee
ou tsid e o f N a sh v ille and C hattanooga w ill u se 6 4 1 . Banks in
that part o f A la b a m a (M o b ile and B a ld w in C ou n ties) served
b y the N ew O rleans B ranch w ill u se sy m b o l 6 5 1 ; banks in
th e S ixth D istrict part o f L ou isian a ou tsid e o f N ew O rleans
w ill u se 6 5 2 ; and banks in the Sixth D istrict part o f M issis­
sip p i w ill use 653.
A rou tin g sym b ol is b ein g assig n ed to each N a tio n a l and
state bank m em ber o f the F ed eral R eserve S ystem and to
each n onm em ber c lea r in g bank. It is not con tem p lated that
any bank w ill discard its p resen t su p p ly o f checks, but it is
h op ed that the p lan can becom e effective as r a p id ly as the
banks have new su p p lie s o f checks printed. W hen banks are
a b le to h ave the rou tin g sy m b o l appear o n th eir checks, the
co llectio n p rocess w ill be g rea tly fa cilita ted .

R e c o n n a is s a n c e
Sixth District Statistics ior April 1945 com pared w ith April 1944
P E R C E N T D E C R E A S E 'W ’ P E R C E N T IN C R E A S E

Department |Store Sales
Department ||tore Stocks
F u m itu lllllilll
C o n s tr u c tio n G

^ t e

HIIIIIHIlllllllll] 5 5 °

G asoline Ta^ Collections
Cotton Cojjisumption
B a n k fi*
Member
Loans
Member Bank Investments [
Demand P ep —
—
40

1
4*

30

20

10

0

10

20

30

40

M

o n t h l y

R e v ie w

o f th e F e d e ra l R e s e rv e B a n k

o f A t la n t a

fo r M a y

1945

5 3

The District Business Situation
N th e w h ole, b u sin ess p rosp ects in the S ix th F ed eral R e­
serve D istrict con tin u e to b e fa v o ra b le. C utbacks in w ar
con tracts have not yet been su b stan tial, th o u g h th e sh ip yard s
w ill release great numbers, o f w orkers as contracts are com ­
p leted . T h e p rod u ction o f steel and c o a l rem ain s at w artim e
p eaks. F arm in co m e fo r th e current y ea r w ill a p p a ren tly be
su stain ed at lea st at the le v e ls p re v a ilin g la st year, even
th o u gh u n favorab le w eather w as a h am p erin g fa cto r in p la n t­
in g and cu ltiv a tio n . R etail trade, as m easured b y d o lla r
v o lu m e o f sa les, con tin u es to surpass p rev io u s records.

O

Production
A lrea d y co n ta in in g parts o f tw o m ajor o il p ro d u cin g states,
M ississip p i and L ou isian a, the D istrict m ay y et d ev elo p
m ajor o il field s in other states. A lab am a and T en n essee even
n ow have a few sm a ll p rod u cin g w e lls, and p rosp ects appear
to be g o o d that F lo rid a w ill p resen tly b eco m e a producer
o f o il in p a y in g q uan tities.
F lo rid a has ju st exp erien ced the stim u la tio n o f h a v in g a
secon d p rod u cin g w e ll brou gh t in . T he n ew p rod u cin g w e ll,
w ith a test flow o f about 1 8 0 b arrels a d ay, is th e secon d
b rou gh t in b y the H u m b le O il R efin in g C om pany near the
B ig C ypress Sw am p som e 2 5 m ile s north o f E verglad es C ity.
H u m b le’s first w e ll, com p leted la te in 1 9 4 3 , n ever d id b e ­
com e a b ig p rodu cer; its p resen t p rod u ction is b etw een 15
and 2 0 b arrels a day. B oth o f the p rod u cin g w e lls, w h ich are
lo ca ted abou t a m ile apart, struck o il b etw een 1 1 ,5 0 0 and
1 2 ,0 0 0 feet. D r illin g and testin g is n ow g o in g on in th e
F lo rid a cou n ties o f H igh lan d , M onroe, G u lf, C harlotte, Bay,
M adison , and C ollier.
G eorgia’s reported o il strike in F eb ru ary in T oom b s C ounty
near V id a lia has thu s fa r fa ile d to resu lt in a com m ercial
p roducer. C urrently, som e 18 or 2 0 g ravity m eter crew s are
w ork in g in South G eorgia but no core d r illin g is b e in g done.
L um ber prod u ction has im p roved recen tly, fo llo w in g the
red u ction caused b y floods in la rg e areas o f L ou isian a. In the
eastern part o f th e D istrict w eather c o n d itio n s h ave been
fa v o ra b le ex cep t in scattered areas. A lth o u g h th e crest o f
the flood has p assed, w ater h a s been rather slo w in reced ing
and m uch forest lan d is under w ater in L ou isian a.
T h e en d o f h o stilities in the E u rop ean th eater w ill h a rd ly
b rin g any e a rly chan ge in th e G overnm ent’s req u irem en ts fo r
lu m b er. H u ge quantities w ill co n tin u e to b e need ed fo r the
P a cific W ar, and la rg e quantities o f m aterial now in E urope
w ill h a v e to be recrated fo r sh ip m en t to th e P a cific forces.
P ro sp ects fo r any ea rly in crease in the am ount o f lum ber
th at w ill be a v a ila b le fo r c iv ilia n n eed s are n e g lig ib le . T he
m an pow er shortage and the lack o f tires and eq u ip m en t c o n ­
tin u e to b e the p rin cip a l o b sta cles to in creased output.
L um berm en are som ew hat d u b iou s ab ou t w hether m en w ho
m ay b e released from w ar p la n ts are g o in g to be sa tisfied to
return to th e lo w er-p ayin g jo b s in th e lu m b er m ills and
lo g g in g cam ps.
O utput o f co a l in A lab am a and T en n essee in A p ril d e ­
clin ed su b sta n tia lly from that o f M arch, b ecau se o f th e strike
at som e o f the steel com pan y m in es. T h e red u ction in A la ­
bam a w as 4 8 per cent, and that in T en n essee 35 p er cent. A s
a consequence, the rate o f steel m ill a ctiv ity in the B irm ingham -G adsden area d eclin ed from 9 9 per cent o f ca p a city in



M arch to 79 per cen t in th e w eek ended A p r il 10 and to 4 9
per cent the fo llo w in g w eek. In the w eek ended A p ril 2 4,
how ever, it advanced to 6 2 p er cent and to 95 p er cent in the
w eek ended M ay 1, and sin ce th at tim e it h as b een reported
b y the Iron Age at 9 9 per cent.
A ctiv ity at th e D istrict’s te x tile m ills d eclin ed som ew hat
in A p ril. C otton m ills in A lab am a, G eorgia, and T ennessee
consum ed 2 7 3 ,8 2 2 b a les o f cotton in A p r il, th e sm allest
m on th ly to ta l reported sin ce la st Ju ly . T h e in d ex o f d a ily
average con su m p tion w as dow n 4 per cent fro m M arch but
w as s lig h tly m ore than 1 per cent ab ove th e in d ex fo r A p ril
o f la st year.
C onstruction contracts aw arded in the D istrict in A p ril
w ere larger than fo r an y other m onth excep t A u gu st 1943 in
a lm ost three years. T he D istrict to tal fo r A p ril w as 1 49 m il­
lio n d o lla rs, m ore than fo u r tim es the M arch to ta l. R esi­
d en tial contracts w ere up , to som e extent, fro m M arch to
A p ril b ecau se o f som e la rg e aw ards fo r h o u sin g p ro jects in
F lo rid a , but the greater part o f the in crease w as in T ennessee.
A p ril aw ards in T en n essee to ta led 1 2 0 m illio n d o lla rs, and
contracts fo r la rg e m an u factu rin g p la n ts accou n ted fo r about
116 m illio n d o lla rs.

Crop Prospects
On a D istrict b a sis, as w e ll a s a n a tio n a l b a sis, crop p ros­
pects are n ot as b righ t as th ey w ere at th e b eg in n in g o f A p ril.
E xcessive rain s in m ost p arts o f th e D istrict and flood s in the
area trib u tary to th e M ississip p i Oliver cau sed som e crop
dam age an d lo ss o f acreage. H ow ever, th e central and
southern parts o f F lo rid a are still in need o f rain . T hou gh
the w eather in M arch w as m uch w arm er than u su a l and farm
w ork m ade g o o d progress, th e ex cessiv e rain s in A p ril and
ea rly M ay w ere accom p an ied b y tem p eratu res lo w er than
u su al. A t th e m id d le o f M ay m ost o f th e D istrict needed
w arm , dry w eather.
T h e in d icated w in ter w heat crop o f 2 3 2 ,0 0 0 b u sh els in A la ­
bam a is the la rg est sin ce 1 9 1 9 and com p ares w ith 2 1 8 ,0 0 0
b u sh els p rod u ced la st year and w ith th e 10-year (1 9 3 4 -4 3 )
average o f 8 7 ,0 0 0 b u sh els. T h e con d itio n o f th e oats crop on
M ay 1 w as reported as b ein g 8 6 per cent o f n orm al, the
h ig h est fo r that date ever recorded. T h e c o n d itio n o f ea rly
Irish p otatoes on M ay 1, at 8 3 per cent, w as five p o in ts above
average and 17 p o in ts h ig h er than it w as on that d ate last
year. P each p rod u ction in A la b a m a is fo reca st at 2 ,4 4 0 ,0 0 0
b u sh els. T h is is about 7 7 per cent greater than th e 1 9 44 crop
but o n ly 2 4 ,0 0 0 b u sh els u nder the state’s record crop o f 1941.
In m id-M ay, reports s till in d ica ted to o m uch rain in m ost lo ­
ca lities, and the con d itio n and p rogress o f cotton w ere
m a in ly poor.
D rou gh t co n d itio n s in northern F lo rid a w ere reliev ed b y
g o o d rain s in A p r il, but in th e central and southern parts o f
the state co n d itio n s rem ain seriou s. T h e lo n g con tin u ed dry
w eather is ser io u sly a ffectin g p rosp ects fo r th e 1 9 4 5 -4 6 citrus
crop , and it h as resu lted in b elo w norm al y ie ld s o f m ost
sp rin g vegetab les. R a in fa ll h as been sufficient in th e stap le
crop areas o f N orth and N orth w est F lo rid a , an d such crop s
as corn, cotton, p eanuts, and to b a cco are off to a g o o d start.
P astu res in that part o f the state are a lso sh o w in g im p rove­
m ent as a resu lt o f th e r a in fa ll in A p r il, but in cen tral and

5 4

M

o n t h l y

R e v ie w

o f th e F e d e ra l R e s e rve B a n k

south ern F lo rid a ranges are v ery p o o r. E stim ates o f the cu r­
rent citru s crop sh ow n o ch an ge fro m th o se o f A p ril 1, w ith
oran ges at 4 3 .5 m illio n b o x es, g ra p efru it at 2 3 .1 m illio n , and
tan gerin es at 3 .9 m illio n . L ess p ro m isin g p rosp ects fo r the
n ext season , how ever, are in d ica ted in th e co n d itio n o f
oran ges, w h ich on M ay 1 w ere at 6 0 p er cen t o f n orm al co m ­
p ared w ith 7 7 per cent a year a g o ; o f g ra p efru it, at 5 5 per
cen t com p ared w ith 71 p er cen t o n M ay 1 la st y e a r; and o f
tan gerin es, at 5 0 per cent, 2 7 p o in ts u nder a y ea r ago.
In G eorgia, h ea v y rain s, h ig h w in d s, an d c o o l w eather b e­
g in n in g th e latter p art o f A p r il h a v e d ela y ed fa rm op era ­
tio n s an d retarded grow th o f p la n ted crop s. W arm , dry
w eather is need ed , p a rtic u la r ly in th e northern p art o f the
state; P ro d u ctio n o f w heat is fo reca st at 2 ,9 6 2 ,0 0 0 b u sh els,
s lig h tly le ss than in 1 9 4 4 but w e ll ab ove th e average. T he
G eorgia p each crop is estim ated at 7 ,8 1 2 ,0 0 0 b u sh els, 7 0 per
cent la rg er than it w as la st year. C old w eath er d id little
d am age th is sp rin g , and p ro sp ects are g o o d in a ll areas o f
the state. P each es h ave b een m o v in g to m arket in ca rloa d lo ts
sin ce M ay 1. A t the m id d le o f M ay there w as s till too m uch
rain, w ith u n fa v o ra b ly c o ld w eather. C otton .was sh o w in g
m uch d eterioration , and a g o o d d ea l o f r ep la n tin g w as
n ecessary.
Som ew hat m ore fa v o r a b le c o n d itio n s are rep orted in
L ou isian a, ex cep t in th e flood area w here a p p ro x im a tely
3 0 0 .0 0 0 acres o f cro p la n d w ere flood ed . It is ex p ected that
ab ou t 2 1 0 ,0 0 0 acres o f th is la n d h a v e b een or w ill b e p la n ted
to crop s fo r h arvest th is sea so n . E lsew h ere in the state A p ril
w eather w as r e la tiv e ly fa v o ra b le, and fa rm in g op era tio n s are
m ak in g g e n e r a lly sa tisfa cto ry p rogress. L o u isia n a ’s oran ge
crop th is season is ab ou t h a lf a g a in a s la rg e a s it w as la st
season — 3 6 0 ,0 0 0 b o x es com pared w ith 2 4 0 ,0 0 0 b o x es. P r o s­
p ects fo r o a ts th is year are m uch le ss p ro m isin g , how ever,
than la st year. T h e p lan ted a creage w a s larger, but part o f
it h as been d estroy ed b y floods.
T h e M ississip p i w heat crop is estim ated a t 5 0 6 ,0 0 0 b u sh els
th is year, com pared w ith 4 3 2 ,0 0 0 b u sh els in 1 9 4 4 . T h e co n ­
d ition o f oats on M ay 1 w as 9 0 p er cent o f n o rm a l, th e sam e
a s a y ea r ago. M ississip p i’s p each crop is ex p ected to be
1 .4 0 0 .0 0 0 b u sh els th is y ea r ag a in st 1 ,1 0 5 ,0 0 0 b u sh els in 1 9 4 4 .
A lth o u g h th e n igh ts are s t ill to o c o o l in th e northern and
central parts o f the state, rep orts in d ica te th at tem peratures
in th e m ain are fa v o ra b le fo r m ost crop s. C orn, truck, oats,
w heat, h ay, and cover cra p s h ave m ad e fa ir grow th, and co t­
ton p la n tin g is fa ir ly activ e w ith som e ch o p p in g g o in g o n in
th e southern and central parts. R a in fa ll h as been a m p le, and
som e lo w la n d s tire s t ill to o w et fo r cu ltiv a tio n .
In T en n essee freq u en t ra in s and a b n o rm a lly c o ld p eriod s
have been d ecid ed ly u n fa v o ra b le fo r row crop s. P astu res and
a ll fru it cro p s are rep orted as g o o d to e x c e lle n t ex cep t fo r
som e fro st in ju ry to fr u its in scattered lo c a litie s. T h e u n ­
u su a lly freq u en t rain s h a v e d ela y ed crop p rep aration s, and
the c o ld w eather h as b een very u n fa v o ra b le fo r cotton and
other sp rin g-p lan ted cro p s. W arm , dry w eather is b a d ly
needed th rou gh ou t the state. T h e w heat crop th is year, e sti­
m ated at 6 ,3 7 0 ,0 0 0 b u sh els, is ab ou t 5 p er cent b elo w that
o f la st year. M ost fr u it cro p s h a v e esca p ed serio u s fro st in ­
ju ry, and p rosp ects are fo r r ela tiv e ly la rg e crop s o f both
p each es and a p p les. L ittle cotton and corn had been p la n ted
b y m id-M ay.
S ix th D istrict farm ers are a p p a ren tly u sin g slig h tly m ore
fertilizer th is year than la st. A p r il sa les o f fertilizer ta x tags



o f A t la n t a

fo r M a y 1945

w ere 3 0 p er cen t greater than th e y w ere in A p r il la st year,
but th e la rg e in crea se in A p r il seem s to b e d ue to later b u y ­
in g th is year sin c e the to ta l fo r th e Jan u a ry -A p ril p erio d is
o n ly 3 .5 per cen t la rg er than fo r th at p art o f 1 9 4 4 . Increases
o f 4 p er cen t in F lo r id a and 6 p er cen t in A la b a m a , G eorgia,
and T en n essee m ore th an offset d ecrea ses o f 5 p er cent in
M ississip p i an d 10 p er cen t in L o u isia n a .

Farm Income
Cash fa rm in co m e in th e s ix states o f th e D istr ict d eclin ed
se a s o n a lly in F eb ru ary but, as in oth er recent m on ths, at­
ta in ed a new h ig h le v e l fo r th e m on th . T h e Jan u ary to F eb ­
ruary decrease th is year w as 19 p er cen t, w h ich com p ares
w ith a drop o f 33 per cen t at th e sa m e tim e a y ea r ago. T he
F ebruary to tal fo r th ese six states w as $ 1 2 9 ,6 9 9 ,0 0 0 , a gain
o f 2 5 p er cent over that m on th in 1 9 4 4 .
In co m e from crop s m arketed in F eb ru ary am ounted to
about 6 5 m illio n d o lla r s, and th at is 4 2 p er cent greater than
th e in co m e fo r F eb ru ary 1 9 4 4 ; in M ississip p i cash incom e
fro m cro p s m arketed w a s m ore th an tw ice th at a year ago,
and in F lo r id a and T en n essee the in crea ses w ere m ore than
5 0 per cent. F eb ru ary receip ts fr o m liv e sto c k and liv esto ck
p rod u cts m arketed, h ow ever, w ere 5 p er cen t le s s th an th ey
w ere a year ag o , in crea ses in F lo rid a , G eorgia, and M issis­
sip p i b ein g m ore than offset b y d ecreases in th e other three
states. D u rin g th e tw o m on th s, Jan u ary an d F eb ruary, farm
receip ts in th ese states w ere a p p r o x im a tely 2 9 1 m illio n d o l­
lars, a g a in o f 12 p er cent over th at p erio d a y ea r ago.

Retail Trade
It seem s p ro b a b le, o n th e b a sis o f rep orts fo r th e first tw o
w eek s in M ay fro m ab ou t 3 0 stores in th e la rg er c ities o f th e
D istrict, that M ay departm ent store sa le s recovered at lea st a
p art o f th e g rou n d lo s t in A p r il. In th e first tw o w eek s o f
M ay sa les averaged 8 p er cen t greater than in th e corresp on d ­
in g p erio d a year a g o . I f th is g a in h o ld s in th e m o n th ly re­
p orts that com e fro m 8 5 d ep artm en t stores it w ill m ean that
M ay sa le s w ere a lso 8 p er cen t la rg er th an th ey w ere in A p ril
o f th is y ear, but s till ab ou t 13 per cen t less, on a d a ily
a v erage b a sis, th an th ey w ere in M arch and 8 p er cent b elow
th e M arch in d ex after a llo w a n ce is m ad e fo r the u sual
sea so n a l in flu en ces and the e a rlier date o f E aster th is year.
T h e sharp drop in sa le s m a d e in A p r il b e lo w th ose in
M arch m a y b e attributed in p art to an ea r lie r E aster, but it
w as in a ll p r o b a b ility due p r in c ip a lly to w eath er con d ition s.
M arch w a s w arm and d ry and, w ith E aster f a llin g on A p ril
1, th ere w as every in d u cem en t fo r sp r in g b u y in g . A p r il, on
th e other h and, w a s in la rg e part a m on th w ith low er-thanu su a l tem peratures an d a g o o d d eal o f rain in m ost parts o f
th e D istrict. In d o lla r v o lu m e, A p r il sa le s b y th e 8 5 report­
in g departm ent stores w ere d ow n 2 5 p er cen t fr o m M arch and
w ere o n ly 1 p er cen t ab ove th e A p r il 1 9 4 4 v o lu m e. B ecause
o f th e sh orter m onth, h ow ever, th e in d e x o f d a ily average
sa les d eclin ed 1 9 per cent fr o m M arch to A p r il. In d ollars,
A p ril sa le s d eclin ed fro m th o se in M arch b y 2 0 p er cen t or
m ore at a ll rep o rtin g c ities, and at A u g u sta and M acon they
w ere dow n 3 2 p er cen t an d 31 p er cen t, resp ectiv ely . C om ­
p ared w ith A p r il o f la st y ear, w h en E aster fe ll on th e ninth
o f th e m onth, there w ere in crea ses th is y ea r o f 8 p er cent at
A tlan ta, 7 p er cent at M on tgom ery, 6 p er cen t at M iam i, 4
p er cen t at B aton R o u g e and Jack son , 2 p er cen t at C hatta­
n o o g a , and 1 p er cen t at K n o x v ille and N a sh v ille . A p r il sa les
th is year w ere less than th ey w ere a year a g o b y 1 per cent

M

o n t h l y

R e v ie w

o f th e F e d e ra l R e s e rv e B a n k

o f A t la n t a

at J a ck so n v ille and N ew O rlean s, 3 per cen t at B irm ingham
an d “ O ther C ities,” 4 per cen t at T am p a, and 7 per cen t at
A u gu sta. In th e first fo u r m onths o f 1 9 4 5 to ta l sa le s b y these
8 5 rep ortin g stores w ere 17 p er cen t greater than in that
p erio d la st year, w ith the g a in s ra n g in g fro m 4 per cen t at
M acon to 3 0 p er cent at M on tgom ery.
D ep artm ent store in ven tories at th e clo se o f A p ril w ere
up 7 per cent, on the average, fro m th o se a m onth ea rlier
and w ere 2 p er cent larger th an a year ag o . In creases over
A p r il o f la st y ear o f 19 p er cent at A tlan ta, 12 p er cent at
B aton R ou ge, and 6 p er cent at B irm in gh am an d N a sh v ille
w ere p a rtly offset in the total b y d ecreases o f 2 6 p er cen t at
N ew O rleans, 3 p er cent at M acon and M on tgom ery, and a
s lig h t d e clin e at “ O ther C ities.”
T h e c o lle c tio n ratios d eclin ed slig h tly in A p r il, but the
p ro p ortion o f sa le s {or cash ad van ced fro m 5 7 per cen t o f
th e to ta l in M arch to 6 3 per cent in A p r il, an d o p en b ook
cred it sa le s d eclin ed from 4 0 p er cent in M arch to 3 4 p er
cen t in A p r il. In both o f th ese m on th s in sta lm en t sa les ac­
cou nted fo r 3 p er cent o f to ta l sa les.
C ontrary to th e season al ten d en cy, A p r il sa le s at S ixth
D istrict retail fu rn itu re stores th at rep ort to th is bank also
d eclin ed fro m M arch. A sm a ll g a in w as reported b y stores
in B irm in gh am , but other cities reported decreases ra n g in g
fr o m 1 0 per cent at N ew O rlean s to 2 0 p er cen t at C olum bus.
C o llectio n s d eclin ed in A p ril, but in v en to ries w ere slig h tly
la r g er th an a m onth earlier. C om pared w ith A p ril 1 9 4 4 , sa les
w ere u p 1 4 per cent, c o llec tio n s 12 p er cent, and in ven tories
13 p er cent. C ash sa le s w ere up 31 per cen t fr o m A p r il last
year, an d th e g a in , in in sta lm en t and oth er cred it sa le s w as
19 p er cent.

Financial Activity
N et circu la tio n o f th is b ank’s F ed eral R eserve n o tes stood on
M ay 1 6 at $ 1 ,3 3 8 ,6 2 9 ,0 0 0 . T h is is a rise o f 6 2 m illio n d o l­
lars, or 5 p er cent, sin ce th e turn o f th e year. In th e sam e
p erio d a year ago the in crease w as 9 4 m illio n d o lla r s, or 10
p er cent. C irculation is n ow a lm ost six and a h a lf tim es w hat
it w as e a r ly in D ecem ber 1 9 4 1 , just p rio r to th e en try o f th e
U n ited S tates in th e w ar. In A p ril n et circu la tio n increased
1 8 m illio n d o lla rs, w hereas th e rise in M arch w as o n ly 8
m illio n . T h e m onth’s in crease w as a lm o st e n tir e ly in n o tes o f
th e th ree sm a ller den om in a tio n s — 5 ’s, 10 ’s, and 2 0 ’s — and
notes o f the 5 0 -d o lla r and la rg er d en o m in a tio n s in creased
le ss than a m illio n d o lla rs, th e sm a llest in m a n y m onths.
D em and d ep osits — adju sted at w ee k ly rep o rtin g m em ber
b an k s in selected cities o f the D istrict h a v e con tin u ed to in ­
crease. T im e d ep osits have a ls o show n g a in s in recent w eeks,
and th ese b an ks have con tin u ed to add to th eir h o ld in g s o f
U n ited States secu rities. D em and d ep o sits — ad ju sted at th e
m id d le o f M ay w ere larger b y 1 5 9 m illio n d o lla r s than th ey
w ere at th e turn o f the year and w ere 1 9 7 m illio n d o lla r s, or
18 p er cent, greater than th ey w ere a year ag o . T im e d ep o sits
at th ese banks h a v e risen 3 4 p er cent in th e la st 12 m onths.
A t m id-M ay these 2 0 banks h eld in th eir p o r tfo lio s a to ta l o f
1 ,3 6 6 m illio n d o lla rs in U n ited S tates secu rities — a new
h ig h and greater b y 2 7 4 m illio n d o lla r s, or 2 5 p er cent, than
th e am ount th ey h eld at th e sam e tim e a year a go. In A p ril
th e turnover o f dem and d ep o sits at th ese w e e k ly rep ortin g
ban ks w as at an annual rate o f 1 4 .7 tim es, a fter adjustm ent
fo r season al tenden cies. T h is w as 6 p er cent lo w er than the
M arch turnover, an d 15 per cent le ss than in A p r il la st year.



fo r M a y 1945

5 5

S ix th D is t r ic t S ta t is t ic s

INSTALMENT CASH LOANS
Per Cent Change
Mar. 1945 to Apr. 1945
Volume
Outstandings

Number
of

Lender

Lenders

Reporting
F e d eral credit u n io n s...............
State credit u nio ns.....................
Industrial banking companies
Industrial loan com panies____
Personal finance co m p a n ie s..
C om m ercial b a n k s .....................

— 22
+ 11
— 10
— 21
— 10
— 1

46
27

11

24
55
34

—
+
—
—

2
1
2
0

+

3

— 15

RETAIL FURNITURE STORE OPERATIONS
Number
Per Cent Change
oi
April 1945from
Item
Stores
Reporting Mar. 1945
Apr. 1944
— 4
103
+ 14
92
92
100
100
80

Instalment and other credit s a le s ..
Accounts receivable, end of month
C ollections during m onth.................
Inventories, end of month.................

—
—
+
—
+

4
3
0
4
1

+ 31
+ 19
+: 9
+ 12
+. 3

,

WHOLESALE SALES AND INVENTORIES* —APRIL 1945
INVENTORIES
SALES
No. oi Per Cent Change No. oi Per Cent Change
Item
Apr. 1945irom Firms Apr. 1945from
Firm s
Report­ Mar.
Report­
Apr.
Mar.
Apr.
ing
ing
1944
1945
1944
1945

11

Automotive su p p lie s.
C lothing and
iu rn isn in g s...............
Shoes and other
footw ear.....................
D rugs and su n d rie s..
D ry goods.....................
Fre sh fruits and
veg etab les........
Farm s u p p lie s.............
Con fectio nery............
G roceries— full line
w h o le sa le rs............
G ro ce rie s— sp ecialty
lin e w h o le sa le rs. . .
B e e r.................................
Hardware— g e n e ra l..
Hardware;— industrial
Paper and its
products.....................
Tobacco and its
products.....................
M iscellan eou s............
T O T A L ...................

— 12

+ 31

3

—

—

3

— 18

9

11
3
3
5

7

+ 17
+ 15
— 7

— 8
—

9

— 11
+ 1
— 10

+ 24
+ 45
— 30

— 14

— 2

4
13
3

+ 26

+
—

— .39

9
4

+ 2

34

12

+ 1

4

— 6
— 5
— 12
—

—

— 19,
+ 4
+ 13
+

15

— 20
+ 20

+ 'i

+

4

+ 1
+ 5
+ 2

— 19

13

— 21.
— 9
— 1

9
16
143

9

+ *4

— 20
— 11

' Based on U . S. Department of Com m erce figures.

Place

DEPARTMENT STORE SALES AND STOCKS
SALES
INVENTORIES
Cent Change No. ol Per Cent Change
No. ol Per
Stores Apr. 1945 from Stores Apr. 1945 from
Report­ Mar.
Apr. Report­
Mar.
Apr.
ing
ing
1945
1944
1945
1944

A LABAM A
Birm ingham ____
M on tgom ery...
F L O R ID A

5
5
3

— 24
— 23
— 26

— 3
— 11
+ 7

4
3
5

— 25
— 27
— 20

—
+
—

6
3
3

— 25
- 32
— 31

— 7
— 20

3
4

— 25
— 24

.4
— 1

4

— 23

+

G E O R G IA
A u g u sta ............
LO U ISIA N A
• Baton R o u g e ...
N ew O r le a n s ...
M ISSIS SIP P I

4
3

6

+ 11
—

3

+

8

+

7

+

19

.+ 10

—

3

1
6
4

+ fi

+

5
3
3
3

+

10
— 0

+ 12
— 26

4

TEN N ESSEE

Chattanooga...

3
— 23
+ 2
K n o x v ille ...........
4
— 21
+ I
Nashvill© ..........
6
— ?8
5
+ 1
+ 11
+ 6
24
O TH ER C I T I E S * . .
— 26
— 3
28
- 0
+ 7
D IS T R IC T ...............
85
— 25
61
• + 7
+ 1
. + 2
* W hen less .than 3 stores report in a given city, the sajes are grouped
together under other cities."

5 6

M

o n t h l y

R e v ie w

o f th e F e d e ra l R e s e rve B a n k

o f A t la n t a

fo r M a y 1945

The National Business Situation
and em p loym en t at fa c to r ie s d eclin ed som ew h at in
A p ril. D epartm ent store sa le s sh ow ed a m arked d eclin e,
and w h o lesa le com m od ity p rices con tin u ed to advance slig h tly .

O

u tp u t

Industrial Production
In d u strial p rod u ction , w h ich had ad van ced e a rlier th is year,
d eclin ed in A p ril to th e sam e gen era l le v e l that p rev a iled
d u rin g the latter h a lf o f 1 9 4 4 . T h e B oard ’s se a so n a lly ad ­
ju sted in d ex w as 231 per cen t o f th e 193 5 -3 9 average as com ­
pared w ith 2 3 5 in the first quarter.
A ctiv ity in th e m ach in ery and tran sp ortation -eq u ip m en t in ­
d u stries d eclin ed ab ou t 3 p er cent in A p r il, reflecting cur­
ta iled m u n ition s p ro d u ctio n ; the la rg est part o f the decrease
w as accou nted fo r b y a further red u ction in o p era tio n s at
sh ip yard s. A s a resu lt o f th e d e c lin e in sh ip b u ild in g du rin g
the last 12 m onths, a ctiv ity in th e tran sp ortation -eq u ip m en t
in d u stries in A p ril w as 10 per cen t b elo w a y ea r ago.
S teel p rod u ction w as m ain tain ed at the M arch le v e l as a
d eclin e in ou tp u t at op en hearth fu rn aces w a s offset b y a
furth er rise in steel p rod u ced in elec tric fu rn aces. P ro d u c­
tion o f n on ferrou s m etals, w h ich had in creased som ew hat
d u rin g th e first quarter o f th is y ear, sh ow ed little ch an ge in
A p ril. O utput o f ston e, cla y , and g la ss p rod u cts w as m a in ­
tain ed at th e first quarter le v e l, w h ile lu m b er p rod u ction
con tin u ed to d eclin e.
P rod u ction o f tex tile s and m an u factu red fo o d p roducts de­
c lin ed slig h tly in A p ril and w as at th e lev e l o f a year ago.
C otton con su m p tion sh ow ed a d ecrease o f 5 per cent from
M arch, but rayon sh ip m en ts rose fu rth er to a record lev e l.
A ctiv ity at m eat p ack in g estab lish m en ts, w h ich had show n
little ch an ge d u rin g th e first quarter after a llo w in g fo r
season al fluctu ation s, d eclin ed 1 0 p er cen t in A p r il. O utput
o f rubber products decreased as the sh ortage o f carbon b lack
continu ed to lim it p rod u ctio n , d esp ite m easures to stretch
a v a ila b le su p p lies. P ro d u ctio n o f m ost other n on d u rab le
good s show ed little change.
B itu m in ou s coal p rod u ctio n recovered in the latter part o f
A p ril fro m a su b stan tial d eclin e e a rlier in th e m onth b e­
cau se o f w ork in terru p tion s a cco m p a n y in g contract n e g o tia ­
tion s. O utput fo r th e m onth w as 8 p er cent b e lo w that o f
M arch and in th e first tw o w eek s o f M ay con tin u ed at th is
low er rate. A n th racite p rod u ction in A p r il w as 1 4 p er cent
h igh er than in th e p reced in g m onth but d eclin ed sh a r p ly in
M ay p rior to agreem ent o n a new w age contract on M ay 19.
O utput o f cru de petroleu m h a s b een m ain tain ed at record
lev els, and iron ore p rod u ction h as show n an e x c ep tio n a lly
la rg e in crease th is sp rin g o w in g to ea rly o p en in g o f th e n a v i­
gation season on th e Great L akes.

Distribution
D epartm en t store sa les d eclin ed sh a rp ly in A p r il, and the
B oard’s se a so n a lly ad ju sted in d ex w as 181 p er cen t o f the
1 935-39 average as com p ared w ith an average o f 2 1 1 in the
first quarter and w ith 172 in A p ril 1 9 4 4 . S a le s in th e first
h a lf o f M ay w ere o n ly s lig h tly la rg er than in th e corresp on d ­
in g p eriod a year ago. O w in g to u n sea so n a b ly w arm w eather
and exp ectation s o f shortages, m uch sp rin g sh o p p in g , w hich
w ou ld u su a lly be d on e in A p ril and M ay, occu rred th is year
in F ebruary and M arch. In m id -A p ril m an y stores w ere
closed im m ed iately fo llo w in g the death o f P resid en t R o o se­



v elt. A lso , in p a rticu la r c itie s p art o f th e recen t decrease in
sa le s a p p ea rs to h a v e b een a sso cia ted w ith a ctu al or a n tici­
p ated in co m e d e clin es r esu ltin g fro m cu tb ack s in w ar p ro­
d uction.
F reigh t c a rlo a d in g s o f m ost m an u factu red p rod u cts w ere
m ain tain ed at a h ig h le v e l in A p r il an d th e e a r ly part o f M ay
and w ere ab o v e th e sam e p erio d a year ag o . S h ip m en ts o f
co a l and lum b er, h ow ever, w ere in sm a lle r v o lu m e, reflect­
in g red u ction s in ou tp u t o f th ese co m m o d ities.

Comm odity Prices
W h o lesa le p rices o f fa rm p ro d u cts ad van ced in A p r il and
then sh ow ed little ch an ge in th e first th ree w eek s o f M ay.
M axim u m p rices fo r co a l, steel p rod u cts, an d v a rio u s other
in d u stria l co m m o d ities have b een raised som ew h at in recent
w eeks.
R etail p rice ch an ges fo r fo o d s and oth er co m m od ities a p ­
p a ren tly h ave con tin u ed to be sm a ll in A p r il and th e early
part o f M ay.

Bank Credit
D u rin g th e fo u r w eeks en d ed M ay 16 to ta l d ep o sit an d cur­
ren cy h o ld in g s o f b u sin esses and in d iv id u a ls in creased by
n ea rly three b illio n d o lla rs. In crea ses o f ab ou t 3 0 0 m illio n
in cu rren cy and o f over 4 0 0 m illio n in reserves required to
b e h e ld ag a in st ex p a n d in g d ep o sits at m em ber banks re­
su lted in an in creased dem and fo r reserve fu n d s b y m em ber
banks. T h is dem and w as su p p lie d la r g e ly b y an in crease o f
ab ou t 5 0 0 m illio n s o f d o lla rs in R eserve B ank h o ld in g s o f
G overnm ent secu rities, m o stly b ills and certificates, and in
part b y a tem p orary d e clin e in T reasu ry d ep o sits at th e R e­
serve B anks. E xcess reserves rose s lig h tly to around a b illio n
d o lla rs.
L oans to brokers and d ea lers fo r p u rch a sin g or carrying
G overnm ent secu ritie s, w h ich h ad d ec lin ed in e a r ly A p ril to
a lev e l co m p a ra b le w ith that reach ed b e fo re th e S ixth W ar
L oan D riv e, rose su b sta n tia lly d u rin g th e th ree w eeks im ­
m ed ia tely p reced in g th e S even th W ar L oan D rive. C om ­
m ercial lo a n s d eclin ed d u rin g the in terd riv e p eriod , reach ­
in g a le v e l about 5 0 0 m illio n d o lla rs lo w er th an that p re­
v a ilin g ju st b e fo re th e S ix th W ar L oan D riv e.

ANNOUNCEM ENT
The Federal Reserve Bank of Atlanta announces two
promotions: S. P. Schuessler has been advanced from
assistant vice president to vice president, and Lloyd B.
Raisty has been advanced from manager of the Re­
search Department to assistant vice president.
Mr. Schuessler now heads the Fiscal Agency Depart­
ment of the Bank. He is primarily responsible for hand­
ling the department’s public-debt operations and Government-security servicing. He first came with the Bank in
November 1918 and has served continuously ever since.
Mr. Raisty serves as head of the Research Department
and as operating head of the consumer-credit control
work of the Bank. His service with the Bank dates from
June 1941.