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M onthly |§ | Review FEDERAL RESERVE V o lu m e BANK OF A T L A N T A A tla n ta , G e o rg ia . M a y 3 1 , 1 9 4 7 X X X II N um ber 5 Farm Forestry in the Sixth District D e s p ite th e ir m o re th a n s ta te s . m ake ra p id F a v o ra b le th is c lim a tic e x te n s iv e o f its e c o n o m ic and th e th a t la n d s to and and rem ed y s ta te th e m ade in y ie ld p la c in g la rg e th e th a t w ill th o u g h tim b e r in s u re la n d s a b o u t tw o a re in fo re st o w n e rs, w o o d la n d o w n e rs o n e th ird th a t th e o f th e ow ner has re a so n The is m ost m ade of been th e of up im p r o v e m e n t any a been s u s ta in e d - p ro d u c tio n , fo llo w m ost in e ffic ie n t le s s th a n im p o rta n t of of farm c o m p re h e n s iv e In a d e q u a te th a t can th e its D is tric t p a y m e n ts to fa rm m ust a tta in th e in c o m e s be $ 1 ,8 8 0 a v e ra g e . s m a ll s iz e on a year In in c o m e th e th e in th e fro m is s t i l l th is re la tiv e ly fa rm -w o o d la n d and D is tric t fa rm e rs, c u ltu r a l c e n su s re le a s e s , h a d L e ss th a n p ro d u c ts m illio n 10 can is an im p ro - fo r 1 9 4 4 . D e s p ite d o lla rs , th e of about 50 som e a D is tric t T he its p e r-a c re to ta l re tu rn v a lu e on so m e re tu rn s fro m on of fo re st s to c k e d been year in th e n a cau sed of by tu rn s th e liv e re d m o re h im s e lf to o f fo re st th a n a m uch th e y fa rm e rs th e ir w o o d la n d s in th e The om y. so u rces to th e w o o d la n d s n o w p ro d u c e o n ly a b o u t o n e th ird th e so of w ith th e m fa rm tim b e r in F o re st sh o w w ood- g ro w in g cro p in th is fa rm th a t in w o u ld of re tu rn s one s tu m p a g e an to s to c k re a c re . If and de d o u b le h is tim b e r and s to c k s , o th e r c ir D is tric t th a t g e n e ra l e s p o s s ib le o n ly fa irly of th a n of m a rk e ts , o v e r th e a re p ro d u c ts m o re S ta m a jo r g ro w in g d o lla rs q u a n tity a v a ila b ility th e th a t m a x im u m , tim b e r fo re s try E x p e rim e n t in c o m e s fo u r th e th e w id e ly u n d e rly in g farm e rs th e fro m a w ith lim ite d m o n e ta ry b e tte r v a lu e . fa rm - I t is b e n e fits a lo n e c e r ju s tify w o o d la n d s th a n in th e a d e q u a te get o u ts id e of s tu m p a g e o n ly p a rtia lly w o o d la n d s h a v e in cau se re c e iv e num ber th e m lo w . F a r m any th a t g ro ss to he and re c e iv e d u n d e re m p lo y e d s till b e e x tre m e ly annual re c e iv e . lu m b e r , i f th e p r o d u c ts s o u s e d w e re g iv e n a m o n e ta r y v a lu e , w o o d la n d s w o u ld m ill, fin a n c ia l to ta l re tu rn s fa rm a v e ra g e fo re s te rs on w o o d la n d s tw o m anagem ent have in c o m e A n at an p ro fe s s io n a l p o s s ib ilitie s p ra c tic a l c a te s th e v a lu e th a t f a r m S o u th e rn im a v e ra g e d m o re in te n s iv e m a n a g e m e n t o f f a r m now has a t s lig h tly a c re . T h e an n u a l fa rm S o u th e rn ta in , h o w e v e r, th a t p r o b a b le 19 s o ld o f s u c h h o m e -u se p ro d u c ts a s fe n c e p o s ts , fu e lw o o d , a n d fro m th e c o n d itio n s , a g ri th e b e g in n in g s ta n d s tu m p a g e . O n c e th e th e q u a lity c u m sta n c e s v a ry of of an h a rv e s te d g ro w in g tim a te s p re se n t m a rk et c le a rly annual fro m h e lp p ro d u c ts lo w . T h o u g h to T he th e ir fa rm s. s a le s up ra n g e in c o m e . es th e th e p ra c tic a b le fa rm fro m m ost w o o d la n d 1945 re g io n s a c re b u ilt th e m at a t th e an at C o m m itte e y ie ld s h o u ld fa rm e r d o lla rs show th e c o u ld has a a p p ro x im a te ly and of tre a tm e n t m a n a g e m e n t. w e re h a rv e s te d fin a n c ia l by C o tto n c o tto n -p ro d u c in g w e ll c u ttin g M o reo v er, as as m uch of Pace d o lla rs a n is to be be o r co rn . e s tim a te s fo r th e a c re . re s u lts th a t w e re p re p a re d tw o s a m e tim e , in any s h o u ld a s c o tto n A lth o u g h fa rm s h a s an w o o d la n d c e n ts w a s d is a p p o in tin g ly a se n se re a liz e d fo rm and th e a m ade, d e liv e re d about an s p e c ia l p ra c tic a l q u a lity fo u r p ro d u c ts lo t. T h e r e f o r e im p ro v e m e n t w ill p e rc e n t, h o w e v e r, r e p o r te d th e s e c o u ld fo re s t p ro d u c ts v a lu e d th a n s m a ll b e lo w a c c o rd in g o f m o re of p e c i a l e f f e c t o n t h e D i s t r i c t ’s e c o n o m i c p r o g r e s s . A lm o s t 6 0 0 ,0 0 0 th e p e rio d e x p e rim e n ts a re a w as $ 1 ,5 0 0 o n th e s tu m p ra te G o v e rn m e n t of on a d d itio n th e no good a lm o s t w h a t it w a s $14 p ro d u c tiv ity p ro d u c tiv ity , b e tte r f o r e s tr y In is th a n $560 w ill, a t th e v o lu m e p e rio d . m o re th a n g ro w th th e s e c o n s id e re d d is p a rity lo w 1 9 3 8 -4 6 y e a rs reg ard S ix th fa r n in e annual p ro v e d . D u rin g of re c e iv e d and th e w e ll-s to c k e d a r e a w a s th a t h a s b e e n b u il t u p to a p r o tra c t h ig h e r d e v e lo p m e n t. e x c lu s iv e 1 9 4 6 , it m a in ta in th e tim b e r in d u s try c re a se fa rm been a v e ra g e g re a t m e a su re and lo n g b e fo re e c o n o m ic fa rm e rs’ cash in c re a s e d have s u rm o u n te d m a x im u m D is tr ic t f a r m s . S in c e in th e T he b e tte r w o o d la n d s m a n a g e m e n t. F o re s t E x p e ri ju s t w h a t re tu rn s p ro te c tio n a c re s, th e ir fa rm s. F o r fo re st w o o d la n d a n d g a v e it th e fa irly th e of to v a lu e fo re s t-im p ro v e m e n t good fire tim b e r tio n b a rrie r tio n a l of fo re s t la n d have w ho in under 1 9 3 7 th e S o u th e rn d e m o n s tra te to key c la s s fa rm e rs, are a 5 ,0 0 0 th e to c o n d itio n . each fo rest g ra m . 1940 In to ta l c a lle d o rd e r th a n p ro g re ss D i s t r i c t ’s c o m m e r c i a l c o m m e rc ia l w o o d la n d p o rta n t p a r t o th e r annual s m a ll h o ld in g s , tra c ts m a n a g e m e n t. in d u c tiv e re ro le . has of F o re s try F o rty ” . A fo re st equal o w n e rs c o n tin u e to th ird s th e s m a ll w o o d la n d n am e “ F a rm a c tiv e m e a s u r e s to on c a p a b le e x p e c te d o n f a r m tim b e rla n d tim b e r a re m e n t S ta tio n s e t a s id e a 4 0 - a c r e tr a c t o f s e c o n d -g ro w th s h o rt- s e le c te d been e c o n o m ic h o ld in g s th e y A t C ro s s e tt, A rk a n s a s , in le a f p in e to b e m a n a g e d a s a f a r m of w a s te fu l p ra c tic e s . S in c e in c o m e im p r o v e d be D i s t r i c t ’s good fu tu re to M uch tim b e r m ust th e la rg e r B u t, c o m b in e h a s th e in d u s tr ie s h a v e ta k e n o f th e s m a ll tim b e r la n d and if cover D is tric t g ro w in g . im p o rta n t th e now S ix th a n a tu r a l w e a lth ra p id ly th e ir a g e n c ie s , s itu a tio n . b a s is tim b e r m anagem ent in th e c o n d itio n s fo r r e h a b ilita te d w o o d -u sin g th e its c o n tin u e F e d e ra l So la n d s in com e fro m s ta n d s . h o w e v e r, are fo re st a rea s o il id e a l p ro g re ss h as fo re st so u rc e s and re g io n m e rc h a n ta b le -tim b e r d e p le te d , e x p lo ita tio n h a lf th e to ta l la n d is of th e th e fa rm th e fa r m re la tiv e ly lo w ra tio w o rk e rs. lo w fo r e m p lo y m e n t p h y s ic a l re M any fa rm e rs a re p ro d u c tiv e d u rin g in c o m e s of se n se th a t th e ir fa rm s f a il to o p p o rtu n ity in d i econ s la c k p ro v id e w o rk . Som e p e rio d s on 5 8 M th e ir o w n fa rm s . A lth o u g h c o n s id e ra b ly , it is at o n t h ly th is w o rk best o n ly o f th e F e d e r a l R e s e r v e B a n k o f A tla n ta f o r M a y 1 9 4 7 R e v ie w a u g m e n ts th e ir in c o m e a p a rtia l s o lu tio n . F a rm w o o d la n d s o ffe r o n e o f th e b e s t o p p o r tu n itie s f o r th e p r o f ita b le e m p lo y m e n t o f fa rm la b o r p ro d u c tiv e ly e m p lo y e d . T o h o w e v e r, th e y v o lu m e of m ust be v a lu a b le th a t w o u ld p ro v id e c a p a b le of p ro d u c ts. F o re s try F o rty ” sh o w o th e rw is e la b o r w ith good p ro d u c in g T he a re s u lts be and w e ll-m a n a g e d c u ttin g and th e d e liv e ry fa rm of 1946 tim b e r y e a rs m ust not re a liz e th e tra c t la b o r re tu rn s on o th e r f a r m c ro p s. P e r c e n t o i A ll F a rm e rs A la b a m a ........... F lo r id a ............... G e o r g i a ........... L o u i s i a n a ......... M is s is s ip p i. . . . T e n n essee ... SIX S T A T E S .. 29 32 25 30 30 38 30 fa rm is be th e farm e rs ta k e n to 1935 1940 1945 a re 24 33 22 23 22 31 25 28 29 18 25 19 26 23 78 152 90 81 72 94 86 88 142 109 91 71 106 97 109 178 123 113 99 139 122 168 220 164 150 111 179 161 s iv e of on now c o n trib u te to fa rm s te p th e p ro g ram s a c tio n b e tw e e n farm e rs and b u s i a ll th e D is tric t g ra m re a c h in g W h e re it is c o n d u c te d on p ro v id e an a n n u a l-y ie ld b a d ly needed in c o m e s . b a s is , tim b e r p r o in c o m e in poor c ro p S o c ia l and e c o n o m ic fa rm e rs’ in c o m e p ro v e m e n t. F o r p o rtio n th e o f its e n tire v a lu a b le th e In som ew hat tin g in f u rn is h in c re a s e la rg e The S ix th 1946 M o re m o re e m p lo y th a t fa rm e rs p ra c tic e s w e re b e in g o p e ra te d a fo llo w e d fa rm c o m m e rc ia l fa rm to ta k e on o n ly w o o d la n d s . w o o d la n d s w e re 2 3 c a re is of c u t p erc e n t re c e iv in g good of fire Application of Better Forestry th e lo n g ru n , fa rm -w o o d la n d and re se a rc h , im m e n s ity a g e n c ie s , upon its c re d it, o f th e and ta s k su c c e ssfu l p riv a te in itia tiv e . a g ric u ltu ra l m ake of is th is g reat p ro b a b ly tim b e r v a lu e s and re s p o n s ib le fo r th e T re e s have not been c o tto n and c o rn can m ake p ro b le m s n a tu ra l th e te n u re . th e F a rm th e m ust u n d o u b t T he resp ect tw o f a r m e r ’s to good m a in to w a rd ju s tifie s re g a rd in g m ade p riv a te th e th e th e th e la te s t a g e n c ie s . re so u rc e fu lly fa rm e rs ’ g e n e ra l in c o m e in e ffic ie n t reg ard e d h av e. In a of th a t m anagem ent as a c ro p th e c e p te d in in a d e q u a te fo r P riv a te g re s s iv e fo re s try ta s k of o w n e r s is th a t a re p ro m o t S e rv ic e , and th e M a rk e tin g th e V a lle y p ra c tic e s of F a rm A u th o rity , is a g e n e ra lly handed a tim b e rla n d fro m in fo rm a tio n m ade of have to tra fa th e r n e ig h b o rin g a g ric u ltu ra l num ber fro m a c c e p te d dow n Second, uses one w ith com es m anagem ent on th ro u g h in a g ric u ltu re p ra c tic e s o b serv e. effo rt d iffe rs a g ric u ltu ra l p ra c a p p lie d is th a t about w hat p rim a rily b y lim ite d a re se a rc h p u b lic been d e v e lo p c o n s titu te s and la rg e ly th e fa rm th e good h u sb an d ry . m a n a g e m e n t, th e re fo re , m u s t a use re so u rc e s re a s o n a b le in d u s try in its o f th is s e c o n d s o u rc e o f of p u b lic D i s t r i c t ’s p e rio d m any of tim e . a g e n c ie s appear fa rm -w o o d la n d F o r th is re a so n c le a r th a t th e r e s p o n s ib ility f o r th e f u ll w o o d la n d s w o u ld h a v e to iz e , p ra c tic e d . w ill d e p e n d in th e D is tric t p ro m o tio n in d u s trie s p rim a rily o th e r w o rd s, tim b e r h a rv e s tin g in p ro re st u p o n in itia tiv e . is sense th e F o rest p ro th is A d m in is tra tio n , h im e s t d e v e lo p m e n t o f f a r m p riv a te s im p ly th e a g e n c ie s in re a c h in g w ith in a p p re c ia tio n now o b v io u s ly T en n essee can little tra d itio n s k n o w le d g e . T h e u s in g p ro d u c tiv e . la c k p o s s ib ilitie s of e ffo rts g iv e farm ers A lth o u g h th e to m a rk e tin g w o o d s a s a n a n n u a l c ro p , th e re a re , h o w e v e r, n o g e n e ra lly a c o w n e rs s o lu tio n p ro v is io n s fis c a l y e a r 3 1 P ro d u c tio n of good S in c e a lo n e it w o u ld s e e m la rg e ly a g e n c ie s c o -o p e ra tiv e fa rm -w o o d la n d d e v e lo p m e n t to w ith th e fo r a b o u t 2 ,5 0 0 G e o rg ia . th e re fa rm e r a v a ila b le e x p lo ita tiv e , 1946 a re use, m o s t e x te n g o v e rn m e n ts th a t o f o th e r g o o d th e p ra c tic e w h ic h th e o f th e good F irs t, n a tu re c o n tin u in g to b u s in e s s , tim b e r-p ro d u c ts C re d it h u sb a n d ry p u b lic th a t fa rm - s ta te on k n o w le d g e so u rc e s. good under fie ld -c ro p -p ro d u c tio n of depend c o n trib u tio n as d e p a rtm e n ts. of th e S in c e e ffe c tiv e n e s s p erfo rm a n ce im p ro v e m e n t D i s t r i c t ’s It la n d lim its C e rta in ly w o o d la n d to th e b e a c c o m p lis h e d im p ro v e m e n t w ill e d ly in v o lv e a c tiv ity w ith in a ll s u c h fie ld s a s e d u c a tio n , m a r k e tin g , tic e s . is and E d u c a tio n r e g a r d in g tim b e r la n d p ro te c tio n . In a th e tim b e r V a rio u s a c t p ro v id e s use A d m in is tra tio n , and p e r c e n t o f th e O n ly so w h ic h w o rk , th e success, S e rv ic e , im p o rta n t re s p e c t fro m fa rm s, good s ta n d s on o f th e ir tim b e r, w ith c o n d u c te d m a rk ed a p p lic a tio n p o s s ib ili re c e n t su rv e y , If, fa rm he u n til fa rm -w o o d la n d v a lu e a h a lf m illio n a n d th e s ta te fo r e s tr y T he good th e except fa rm -w o o d la n d H om e of poor th a t in c o m e -p ro d u c in g m a n a g e m e n t. b e in g s ta te s A d m in is tra tio n , d itio n w o o d la n d s , it v e ry D u rin g it. fro m and g a v e a s s is ta n c e to C o n s e rv a tio n i n d u s t r y ’s th e tim b e r e d u c a tio n a l its sc o p e . S o m e b e tte r e rs in F ed eral a c h ie v e d far beyond in g of in th a t am ount cro p fo r p a r t o f th e a tta in in g a s s is ta n c e m o re th a n to s o n m an ag em en t o f fa rm tra c ts . A c c o rd in g c o m m e rc ia lly a ll th e a d o lla rs . to to in im s ta tu s p e rso n s b illio n f o r h ig h e r in c o m e s a n d good s u rp ris in g tim b e r im p ro v e d . 1 .2 and of e c o n o m ic 2 4 5 ,0 0 0 at in c re a s e th e re g io n a l ec o n o m y . o f th e n e e d tie s f o r th e m th e ir in d u s try th e be e m p lo y e d v a lu e d an fa rm -w o o d la n d p ro d u c tiv ity to w o o d la n d s w ill te n d in v ie w th e c e rta in in d u s try tim b e r im p o rta n c e is th a n fro m is in c re a s e d p ro d u c ts fa rm m e n t in o th e r ac c ru e th in g , w h e n are a c o m m u n ity p ro d u c e d b e n e fits w ill one la n d D is tric t tim b e r and has S o il y e a rs. th e an T h e re fo re tim b e r o ffer v a lu e f o r e s t m a n a g e m e n t. D u r in g re d u c e can th e A c t. T h is th e te c h n ic a l a s a d v e rs e w e a th e r a n d d u c tio n an re g u la r su ch N o rris -D o x e y in fe s ta tio n s , fa rm h im s u s ta in e d -y ie ld o f th e n e s s s ta b ility . N a tu r a l h a z a rd s , su c h s e v e re ly a in p e rfo rm in g in s e c t o fte n as a p p re c ia te firs t e m p h a s is D ay s W o rk ed P er F a rm e r a lso m akes m u s t b e e d u c a te d 1930 w o o d la n d s v a lu a b le s to c k fe s s io n a l fo re s te rs P ro d u c tiv e a has h is 1945 25 37 . 21 22 22 27 24 in v a lu e s . g ro w in g 1940 1935 a ll h a rv e s t. tim b e r m anages A s 1930 s trip p in g o p e ra tio n , c a p a b ilitie s o f h is w o o d la n d s . F A R M E R S ' W O R K O F F FARM S P la c e buyer each of fa rm e r lik e ly c o m p a ra b le to b e tw e e n s ig h t p ro d u c tiv e m ay fig u re or one re m o v a l o f o n ly th e a c ro p s h o u r, a at o th e r h a n d , he a d o lla r a n c u ttin g , g ro u n d m a in ta in a n d e q u ip m e n t u se d m o re th a n e la p s e lo s e s th a t h e fo re s t-p ro d u c ts p ro v id e d 4 1 4 m a n -h o u rs o f w o rk . G ro s s r e tu r n s f o r th e la b o r a v e ra g e d c le a r th e e q u a l to th e a n n u a l g r o w th . W h e re c le a r c u ttin g is p r a c tic e d , m any m ay In of fro m c u ttin g , o r th e fa rm e r th is fo rm o f s e le c tiv e th e la rg e . c ro p , s te a d “ F a rm th e w o o d la n d s a r e its th e tr e e s tim e t h a t th e la b o r r e t u r n s p o s s ib le o n w e ll- s to c k e d ta k e n m e rc h a n ta b le la rg e fa irly on un- re tu rn s , u s u a lly p ra c tic e of good is b e tte r fo re s try b e c a u s e it is a g o o d b u s in e s s h o w ev er, th a t on th a t la n d s . To has v a lu e s p riv a te how c o n v in c e th e th e adequacy m any sm a ll in d u s try has b e in g of g ra tify in g ly w o o d la n d on use. th e ir ow n la n d s p ro p o s itio n . T h e y fu tu re tim b e r ag W ood- re a l s u p p lie s s m a ll o w n e rs u se th e ir w o o d w o o d la n d a tte m p te d o w n e rs of th e ir tim b e r se v e ral p ro g ram s, o ne M o n t h ly o f th e b e s t k n o w n is s p o n s o r e d is a by p riv a te ly m a rily o f th e F e d e r a l R e s e r v e B a n k o f A tU m ta f o r M a y 1 9 4 7 R e v ie w to a b e in g th e th e “ T re e S o u th e rn ow ned fo re s t-la n d c o n tin u o u s F a rm ” P in e a rea th a t is fa rm d e v o te d p ri of m any th e fa c to rs , d is ta n c e such to as th e m a rk e t, k in d and enced b u y er know s how th e o f tim b e r, to ta l u n d e r g o o d f o r e s t p ra c tic e s . T h is m o v e m e n t, w h ic h h a s b e e ij hand, L o u isia n a , in c lu d e s T he b e rs on S o u th e rn have th e ir fo r d e v e lo p is D is tric t a lm o s t la n d s and s u s ta in e d -y ie ld on good th e o w n e rs. p ra c tic e p riv a te of good la n d s a s s o c ia tio n fo re s try upon re ta in s la n d and to and p u lp m ill v a te in d u s try is p riv a te a ls o in te re s te d tim b e rla n d s . s a w -tim b e r s u p p lie s . T he p ro g ram in is th a t it on p u t th e ir w o o d la n d s s a w m ill s im ila r h ig h ly a T he re q u ire e n c o u ra g e s to p ri p ro d u c tiv e M arketing th e tim b e r p ro fita b le g ro w in g fa v o ra b le a re in c lo s e ly f o llo w e d by rio u s o b s ta c le s to th e d e c id e d T o so have v o lu m e in th e ir o fte n u s u a lly little or th e m ake of any p a rt, m a rk e ts fo r th e w o o d la n d s . re la te d good to a b ility th e a c c u ra te fo r of w hen lo w fa rm e rs’ “cut and s e ll of and p ric e s g e n e ra l tim b e r get p ra c tic e s . a c c u ra te ly th e y u s u a lly and su c c e ssfu l m a rk e t o u t” o p e ra to rs , a r e th e s ta n d in g e s tim a te s b u y e rs cro p , L u m p -su m m a rk e tin g v a lu e fa rm a v a ila b le un la c k o n ly if a p o lic y S in c e fa rm e rs a p p ra is in g tim b e r, th e y on e ith e r s ta n d in g -tim b e r in c lu d e a s a fe ty at v a lu e s m a rg in a tio n a l is th e ir b id s . A p p r a is a l o f tim b e r v a lu e s in v o lv e s c o n s id e r a tio n try has fa c tu re s of fo r on tra c t w ith fo r. tra c ts o f tra c ts b e p u t to th e ir S in c e o f m a r is th e ir not a re saw t h e i r m o s t e ffic ie n t p ro d u c ts tim b e r w a s te , a n d are a lo n e , even of in se v e ra l th e in h a rv e s te d fo r and e x a m p le , re ex p en se b ecau se an th e m a rk e t im p o rta n t p u lp w o o d o u tle ts . T he sensa in d u s o u tle t f o r fo r fo re s t p ro d u c ts paper and in d u s try o th e r c o n tin u e s m anu s tro n g , w ith th e im m e d ia te f u tu r e . a r e a s a r e , o f c o u rs e , b e s t s u ite d f o r p u lp w o o d and of D is p u lp -a n d -p a p e r S o u th e rn tim b e r. D e m a n d T h in n in g im p ro v e m e n t c u ttin g , w h ic h p ro a re es w o o d a n d , a s a r e s u lt, e x tr a in c o m e in s te a d o f e x p e n s e . F u e lw o o d , p o le s , p ilin g , c ro s s tie s , m is c e lla n e o u s ite m s a ls o The on e d u c a tin g fe n c e p o s ts , and a v a rie ty of a r e im p o r ta n t m a r k e t o u tle ts . p ro f ita b le m a rk e tin g depends th e o f fa rm -w o o d la n d fa rm e r to m a rk et p ro d u c ts a w id e firs t v a rie ty o f p ro d u c ts a t r e g u la r in te rv a ls in s te a d o f m a k in g in fre q u e n t lu m p -s u m be s a le s . p ro v id e d In fo r a la rg e u tiliz e d . T h e a seco n d p la c e lo w -g ra d e tim b e r p a rt th is uses a ll th a t have a p ro d u ct fo r p a rtic u la r e rs th a n iz e d p ro d u c t a re th e o w n ers n e e d to have of tim b e r c o n c e n tra te s m a ll q u a n titie s p o s s ib ilitie s p la n ts c o u ld sum er goods. th e th a t B y F o re s try M any of a re To re se a rc h th a t m ust speed som e s m a ll F re of a q u a n ti o ffer la rg e r q u a n la rg e m o re v o lu m e s a ttra c tiv e up have to of buy u tiliz e to to such fin is h e d b y -p ro d u c ts con w a s te d in w o o d -p ro c e s s in g se v e ra l open w ith s ta n d s no ty p e s of fo re st w o o d la n d fo r p ro p o rtio n th e la rg e th e s ta n d s can a v a lu e . of a tta in d e v e lo p m e n t o f n e w tim b e r g ro w th w o u ld do im p ro v e m e n t. o u ts id e a b le m a rk e ts m a rk et b e fo re lo w -v a lu e new p rese n t a c o n ta in rem o v ed m a in ly in to seem s O fte n g r e a te r m a r k e t o u tle ts . p ro m ise s been lo c a tio n s o u tle ts . tim b e r th e p ro d u c tiv e n e s s , a n d e x te n t, c o -o p e ra tiv e s m a rk et of to p ro d u c ts be s tra te g ic m a n u fa c tu re , fu rn is h c o m m e rc ia l u s e s f o r th is to use e q u ip p e d a ls o tim b e r th e ir m a x im u m m uch m eans th a t m o s t in d iv id u a l f a r m lo w e r-g ra d e m a k in g fa rm -w o o d la n d s p e c ie s at g re a te r tim b e r-p ro d u c t p ro d u c ts c o u ld num ber p la n ts fo r c o n v e rt usual p la n ts by th e R e la tiv e ly g e n e ra lly c o n ta c t p ro d u c ts. s e ll. A n in c re a s e in th e n u m b e r o f s m a ll s p e c ia l w o o d -p ro c e s s in g o ffer m a r in c o m p le te ly s a le . a re of is tie s o f p r o d u c ts , g r a d e a n d s o r t th e m , a n d of each in tre e s . v a rie ty a c c o m p lis h e d w o u ld th a t o u tle ts p a rtic u la rly p ro d u c tio n ty p e s c o n ta c t m ig h t b e agency re q u ire s o f h a rd w o o d o w n e rs o f th e ir s m a ll tim b e rla n d m a rk e t th a t it p ro d u c ts , a la rg e p ro p o rtio n D is tric t k e t o u tle ts w ith th e m any th o s e a r e a s w ith e r s h a v e to h is s o ld s e n tia l in th e g o o d m a n a g e m e n t o f th e s e la n d s , p r o v id e p u lp a LNLAADLS PE OG FNSA I E HN S(INCTDESFNLPINELYINESSEE)HDOS H LUEVIRGINIAB INTPEN AWD OLAADOO EN AD R O R LL N REBTOHDOSNCRS I RO MRWDADY E V T A O PS UADA WD P NHDOS L RO PAI ADASLN RI ENM H D R RA lo s s e s a p ro s p e c t o f e v e n g re a te r d e m a n d s in titie s HH of o w n ers h a v e saw m a rk e tin g FOREST T Y P E S IN THE SIXTH DISTRICT fo r been re m o v a l o f u n d e s ir a b le tre e s . F o r tu n a te ly re s u lte d o th e r th a n q u e n tly F O R E S T TY PES w o o d la n d s c a n d e v e lo p m e n t A lth o u g h in have f a r m e r ’s c o m p a r i s o n c o n s id e ra b le tric t tim b e r b a s is . th a t a re tra c ts o w n e r, o n th e o th e r m ade o ffs e t p o s s ib le v a rie ty th e n e c e s s a ry s a le s , m ost se o ffe r o f e v a lu a tio n . T y p ic a l fa rm use d u c tio n . re a d ily s m a ll s a w m ill d is a d v a n ta g e d iffic u lt th a t a In a d e q u a te a c c o u n t, in te re s t w h ic h p ro d u c tio n re q u ire s p ric e s . d o u b te d ly of lia b le m e a n s P in e la n d b a s is . L ik e a c tu a l v a lu e , th e in s a w m ill th e o th e r to s u lts o p e ra to rs ’ p ro g ra m o w n e rs to try c o n d u c t th e m o s t a g g re s s iv e e d u fre e o p e r a to r s ’ e d u c a tio n a l-a n d -a s s is ta n c e th e o p e ra to rs M anagem ent m anagem ent of a d e q u a te know s c o s ts , e x p e ri g in a l v a lu e b y b u y in g th e b e tte r s ta n d s a t p ric e s b e lo w to p ro he s o ld . w ith la r g e r firm s , w ith th e ir h e a v y p la n t in v e s tm e n ts , a ls o c o n tin u o u s w h ic h fo re s te rs p ric e s c o m p a re m a n ag em e n t se rv o w n ers th e and th e th e G e o rg ia A s s o c i a t i o n ’s m e m p la n s f o r c o m p a n y p u lp m ills c a m p a ig n s , o b ta in in g tim b e rla n d o th e r T h e p riv a te -tim b e rla n d c a tio n a l except C o n s e rv a tio n o b je c tiv e p ro d u ced . s ta te s 500 P u lp w o o d ic e s . T h o u g h th e in th e th e ir ow n s tu m p a g e v id e a ll o n ly T he to g iv e e a c h f a c to r its p r o p e r w e ig h t a n d s till m a k e a p ro fit. U s u a lly th e f a r m cah lo g g in g v o lu m e . p ro d u c ts in of tre e m e rc h a n ta b le o rg a n iz e d g ro w th m o v e m e n t, w h ic h A s s o c ia tio n . A 5 9 to th e S ix th D is tric t, a tta in m o re fa v o ra b le fo re st m a r k e ts . F r e q u e n tly th e in d iv id u a l f a r m e r w ill fin d it im p r a c tic a l to a c q u ir e th e k n o w le d g e n e c e s s a r y to e ffic ie n t m a r k e tin g . B y M 6 0 o n t h ly c o -o p e ra tiv e a c tio n h e c a n e n tr u s t h is tim b e r - m a r k e tin g le m s to a tra in e d fo re s te r, w h o b u y e rs . A s it h a s b e e n o w n e rs h ip th u s d e v e lo p e d o f w o o d -p ro c e s s in g f a r m e r to c a r r y o b ta in can in b a rg a in o f th e F e d e r a l R e s e r v e B a n k o f A tla n ta f o r M a y 1 9 4 7 R e v ie w p ro b e ffe c tiv e ly w ith so m e a re a s , c o -o p e ra tiv e fa c ilitie s e n a b le s th e p ro b le m as w e ll v a te -w o o d la n d -m a n a g e m e n t tio n to p ro b le m . It w o u ld b ro u g h t p ro b a b ly p re c e d e d A la b a m a ........... 223,369 F lo r id a ............. 61,159 G e o r g i a ........... 225,897 L o u i s i a n a ......... 129,295 M is s is s ip p i___ 263,528 T e n n e s s e e ___ 234,431 SIX S T A T E S .. 1,137,679 fa rm F arm s R e p o r tin g S o m e F o re st P r o d u c ts S o ld 4,079,153 ,1,352,480 6,439,062 1,010,136 3,859,482 2,749,068 19,489,381 c o u ld m ay fo rc e fa rm w o o d la n d is expand th e th e fa rm a re a s u n its . te rm in g le d th e e rty . fire T he fa rm s m a ll liv e th a t th e ir m ost d is ta n c e p ra c tic e s a re and of an in to in p ro p and th e M uch d itio n G ood s to c k in g a 3 3 (060 56,563 60,777 15,156 13,690 89,623 0 2 0 2 7 1 2 12 2 9 35 8 F a r m ............................................... N o n f a r m ........................................ T ra c ts le s s th a n 5,000 a c r e s T ra c ts 5,000 to 50,000 a c r e s T ra c ts o v e r 50,000 a c r e s ___ T o t a l . . . . ............................. to D e s tru c tiv e Poor 25 27 25 26 31 27 65 49 65 46 21 55 is s in k cannot c o m b in e tim b e r p ro d u c tio n w ith 8 10 8 17 6 9 th e ir o th e r a c tiv itie s , h o w e v e r, it is d o u b tf u l th a t th e ir tr a c ts c o u ld be as p ro fita b le fa rm h is a s th e o w n e r s e ld o m ow n age h a rv e s tin g b a s is . in c o m e T hus th a t th e s iv e th a n f o r h im is c o n tro l can is it is f o r are. T h e e q u ip m e n t o r th e re fo re u n a b le fa rm e r fire w o o d la n d s h a s th e and he F u rth e rm o re fa rm to get d e riv e m o re e x tra u s u a lly th e s e lls ever s m a ll n o n la b o r to on a fro m d iffic u lt th e f a r m e r w h o do s tu m p c o n s id e ra b le th a t in m ust cash G ood 36,103 61,319 67,081 16,207 14,134 97,422 3 3 2 2 7 3 ow n tim b e r tra c ts in to farm u n its w o u ld th e s e p ro v id e an p re v e n t liq u id a tio n w o o d la n d is in h is w ill b e p la n tin g Poor 40 41 42 36 39 40 s m a ll a of cases. such re q u ire d or o th e r N one 33 27 37 32 18 29 n o n fa rm p a rtia l s o lu s ta n d s poor con to th e re tu rn s p la c e m eans D u rin g b efo re of it re re la tiv e ly b e g in to com e fire p r o te c tio n , ta x e s , p r u n in g , a n d ac c ru e . O fte n re q u ire d . T h e in v e s tm e n t th a t P re ssu re c o n s id e ra b le fa rm e r w ill fo r o f a n y e x tra tim b e r y ie ld c u rre n t la b o r in s ta n d , s in c e no re tu rn s in c o m e w o rk th e w o rk c a n n o t affo rd in m ay re o ff th e fa r m la tte r cash w ill im p ro v e m e n t, c re d it f o r fo re s t-la n d tio n w o u ld le g a l th e h a v e to c re d it c re d it s io n of to and fo r in y ie ld are M any f o r lo n g banks p e o p le la b o r re h a b ilita d e g re e fro m p e rio d s. to w h ic h p ro v id in g im p ro v e m e n t. now im p ro v e m e n t o f f a r m e x tra th e fa rm -w o o d la n d p o lic y . u s e h is in te re s t ra te s n e c e ssa ry s u b s id iz a tio n p u b lic th e be to p re v e n t c o m m e rc ia l needed re g u la tio n e n c o u ra g e h im b e a t lo w m ay re s tric tio n s m e n ts and w id e ly a d v o c a te w o o d la n d s . C re d it u sed in s tru th e ir e x te n I t w o u ld seem a n y c a s e th a t th e b e n e fits w h ic h w o u ld a c c ru e in th e fo rm s e rv a tio n , and re d u c tio n s so m e m e a su re h a n d le th e y w e re of flo o d h az a rd s, w a te r c o n w o u ld ju s tify o f p u b lic s u b s id iz a tio n . h o w ev er, c re d it th e c o m m e rc ia l p ro b le m s a llo w e d c o u ld . W o o d la n d s in P e r c e n t in P ro te c tio n C la s s of c a te g o rie s — th e f o r w o o d la n d if 24 29 25 30 36 28 in c o rp o ra tio n g e n e ra l w ood w o o d la n d o f m o re - n e a rly a d e q u a te tim b e r s u p p lie s , s o il a n d F a ir fu lly fa rm th e n e c e s s a ry p a rtic u la rly C o m m e rc ia l F o r e s t A re a (T h o u s a n d s o i a c re s ) th e of w o rk . h is be c a p a c ity . T h e expen on fa rm - o f b u s in e s s , c a n m o re liv e s a rea s of s h o u ld life b lo o d tw o m any as fu tu re . on G e n e ra lly , cases to e la p s e w ill b e in th a n to fa v o ra b le c o m m e rc ia l c re d it. I n do th e re la te d so, banks to b e tte r th a n D i s t r i c t ’s l a r g e p o s itio n w ith su ch c o u ld p u b lic p in e re g a rd a g e n c ie s a re a s to a r e in a use of th e th e im p ro v e m e n t o f s ta n d s o n m o s t o f s ta rt fro m g in n in g . s to c k b rin g in T h e re is re tu rn s S o u th e rn p in e s o n ly re la tiv e ly fo r w hen liq u id a tio n th e a lre a d y soon g ro w p re ssu re m uch a fte r so sh o rt g ro w in g s ta n d ra p id ly im p ro v e m e n t th a t in d e b te d n e s s s ity im p e ls th e f a r m e r to c re d it m ay th e b e w h ic h w ill is begun. be needed p e rio d s . o f fo re s t g ro w in g of p ro b im p ro v e m e n t, th e s e w o o d la n d s it w ill n o t b e n e c e s s a ry to T he m any th a t in C LA SS O F F IR E P R O T E C T IO N O N PRIVATELY O W N E D F O R E ST LANDS - 1945 In e x p a n sio n n o im m e d ia te la b o r r e tu r n . T h e r e f o r e , in o r d e r to e x te n d h im a b ly F a r m .............................................. N o n f a r m ........................................ T r a c ts le s s th a n 5,000 a c r e s . T r a c ts 5,000 to 50,000 a c r e s . T ra c ts o v e r 50,000 a c r e s . . . . T o t a l..................................... th e th e s e la b o r and a re p ro d u c tio n , in tim b e r h is ow n o w n er v a lu e s c o tto n d e v e lo p m e n t in to c u ttin g s , w ill q u ir e th e u tiliz a tio n p ro p e rty . O w n e r s h ip C la s s of p ro d u c tiv e T re e n e c e ssa ry im m e d ia te ra th e r th e th e fa ll b a s is . o u tla y P u b lic u s u a lly A s w is e of la n d la n d in c o m e lin e g re a t d e a l o f tim e p e rio d cash th e in n ec e ssary p ro fita b le lo n g and P ER C EN T O F C U T T IN G F a ir th is o f t h e D i s t r i c t ’s f a r m th a t a im p ro v e m e n t H ig h O rd e r fa rm s. under p ro d u c tiv e . as o w n ers C H A RA CTE R O F TIM BER C U T T IN G P R A C T IC E S O N PRIVATELY O W N E D F O R E S T LA N DS - 1945 O w n e r s h i p C la s s in be r e h a b ilita te u n p r o d u c tiv e tim b e r s ta n d s in , v a r io u s c o s ts , s u c h O p e r a ti n g C o m m e rc ia l F o re s t A rea (T h o u san d a c re s ) out fa rm c a lle d ro le needs c re d it a lre a d y is poor in a d v a n ta g e w hen p o s s ib ilitie s m a x im u m c re d it on as been f in a n c in g r e q u ir e d to of s m a ll w o o d la n d are a s o ffe rs has th e ir o w n e r ’s D is tric t. th e ir fa irly a a t p r e s e n t. B e c a u s e m e c h a n iz a tio n u p la n d im p o rta n t to in a d e q u a c y th e m anagem ent w o o d la n d s . S in c e th e s e th e fro m p e rio d p ri- by now th e th e to v a lu a b le a d ju s tm e n ts a to have Financing e ffic ie n t c lo s e ly in a re c o n s id e re d . A lo n g C re d it, w h ic h b e n e c e s s a r y to tra c ts over som e its a p p re c ia te s u p p le m e n tin g a c re a g e m o re as e x p lo re d . la n d s a d ja c e n t w o o d la n d s p o n fa rm w o o d la n d s c u ttin g in d ic a te th a t o f fa rm s m a ll o w n e rs p resen t c o n tro l in c o rp o ra tin g T h ese w ith F re q u e n tly by e x tre m e ly s u c h c a se s it m a y w o o d la n d s Such best th e y la rg e w o o d la n d Expansion of Farm W oodlands th e w ill tn a d e fo r m ust be 0.54 0.23 0.60 0.35 0.56 0.54 0.50 be m e asu res th e becom e w o o d la n d s . le s s in f la te d th a n p la y W h e re of w o o d la n d s a d ja c e n t s h ip D o lla r V a lu e o i F o r e s t P r o d u c ts S o ld P e r A c re T o ta l o i W o o d la n d 10,207 1,981 11,284 3,721 12,266 9,993 49,452 and im p ro v e m e n t p resen t m a n ag em en t fa rm e rs 129,040 29,831 141,135 46,624 108,236 136,355 591,221 u s e m a y b e im p o s s ib le . I n s lo w ly g e n e ra l F O R E ST P R O D U C T S SO L D BY FA RM ERS IN 1944 F arm s R e p o r tin g W o o d la n d about m em ber in g T o ta l F arm s lo w -fa rm -in c o m e fu rth e r a n d th e p r o d u c tio n p ro c e s s o n e s ta g e a d d itio n a l p ro fits . P la c e th e s to c k or fre q u e n tly o th e r fin a n c ia l o c c u rs neces s e ll a ll h is m e r c h a n ta b le g ro w th in M o n t h ly o rd er to o f th e F e d e r a l R e s e r v e B a n k o f A tla n ta f o r M a y 1 9 4 7 R e v ie w get im m e d ia te cash p o s s ib le . T h is c o n v e rs io n th e f a r m ’s e a r n i n g re tu rn s c a p a c ity . tic u la r s u s ta in e d -y ie ld S ta n d A re p o rt b a s is th a t h a s p re p a re d by th e and F o re s try P ack p ile d in s ta n d c o n ta in in g ber 1942 c o u ld , show s w ith th e it, b u t h e w o u ld re c e iv e ro w h is tim b e r in g he le a v e th e a llo w a had of m ost a m o re by u n ifo rm firs t 3 0 y e a rs, tim s ta n d at b o r have to ta lin g le ft g ro w v a lu e o f a b o u t $ 1 ,1 5 0 . S e le c tiv e a m o rtiz a tio n g ro w in g fo r s to c k of th e debt and p ro v id e th e in te r e s t c h a rg e s . I t w o u ld th a t w o u ld p ro v id e c o n tin u o u s s to c k to T he w o u ld y e a r ’s t i m e , t h e r e not do tiv e it w ith c u ttin g , h is on b e r h a rv e s tin g a such a liq u id a tio n s u lts . I n id ly it h is m uch a ll w o rk and th e tim b e r th e c o u ld re g u la r fa rm in te g ra te w o rk a fa rm e r c o u ld e q u ip m e n t. W ith hand, he in and s e le c it is c le a r o f w o o d la n d S o u th e rn be th a n v a lu e s p in e and c o u ld have to in use th e c re d it even N o rth e rn h a rd w o o d advan re g io n s. P la c e A re a (M illio n s of a c re s ) P e r c e n t of T o ta l L a n d A re a A re a (M illio n s of a c re s ) P e r c e n t of T o ta l F o r e s t L and A rea 18.8 21.8 21.1 16.2 15.9 11.8 105.6 58 63 56 56 52 44 55 6.6 3.9 9.6 2.3 5.8 4.8 36.1 39 18 49 18 40 44 34 32.7 34.7 37.5 28.9 30.4 26.9 191.0 A la b a m a .................... F l o r i d a ...................... G e o r g i a .................... L o u i s i a n a .................. M is s is s ip p i............. T e n n e s s e e ............... SIX S T A T E S ........... have o th e r c re d it F a rm w h ic h fo rm w ho to th e liq u id a te s fu n c tio n fo rm s of p ris e s , pal on fa rm w o u ld se c u re w o o d la n d s , e n ta il and to c e rta in in s u re lik e le n d in g sa fe g u a rd s th e to su ccessfu l on and m ake th e h is in c o m e - in tim b e r a g ric u ltu ra l to tim b e r p ro d u c tio n C re d it A d m in is tra tio n to p ro has been th e in le n d B a n k s . A t p r e s e n t b o th th e D is tric t based fo rm re ta in e d of to on C a ro lin a , and fa rm -w o o d la n d th e lo n g - tim e a o f c o u rse, N ew o w n e rs. e a rn in g ca need he c u ts c e rta in la n d and f o r a d d itio n a l lo a n c a p ita l. P ro fe s s io n a l in h e re n t c a p ita l v a lu e s p o s s ib ilitie s s tip u la te re q u ire m e n t th a t th e b efo re p ro d u c tiv e e v a lu a te th e in c o m e - p r o d u c in g banks, of tim b e r s ta n d s . sa fe g u a rd s. o w n e r o b ta in s e lls h is s e rv ic e s to O ne th e tim b e r. of b a n k ’s p e r B ecause tim b e rla n d T he th e m of a o w n e rs, p a r tic u la r ly in th e S o u th , th e e s ta b lis h m e n t o f a s p e c ia l d iv is io n F arm is C re d it now if p u b lic a c tiv itie s p ro v id e on th e A d m in is tra tio n b e in g c re d it in s titu tio n s tim b e r la n d s , th e y by fo re , th e c o m m e rc ia l b a n k s c re d it if a ll th e to m ake lo a n s on c o n s id e re d . c re d it n e e d e d fin a n c ia l do expand p ro b a b ly fa rm -w o o d la n d m ust be needs farm be le n d in g u n a b le to o w n e rs. T h e re a llo w e d fo r th e ir w ill to e x te n d w o o d la n d s su ch a re to b e m e t. are of o th e r im p o r ta n t c o n s id e ra tio n s p riv a te fa rm -fin a n c in g are a lre a d y T h ese le n d in g m a te in p ro b le m s w ith le n d e rs h a v e a re h a n d lin g of th e in m a k in g m ake d e s ira b le . c lo s e ly re la te d to fa rm e rs’ c re d it v a lu a b le k n o w le d g e c h a ra c te ris tic s p ro b le m s . o th e r of c re d it s im ila r th e F arm o th e r b a n k e rs , f o r e x a m p le , th e c o m m u n ity fa rm e rs’ th e w h ic h seem m uch b o rro w e rs’ p e rso n a l k n o w le d g e in v a lu a b le in s titu tio n s p ro b le m s . T h e c o u n try fa m ilia r p riv a te p ro s p e c tiv e p ro b le m s . and T h e ir on in ti e x p e rie n c e p ro b le m s lo a n s o f th e an w o u ld fa rm be w ood la n d s . T h e r e la tiv e ly c o s tly in v e s tig a tio n s th a t a r e f r e q u e n tly m o st e n te r B e c a u s e o f th e le a d in g p rin c i c o u n try banker of liq u id a tio n w ho tim b e r p re se rv e r e q u ir e d b y p u b lic a g e n c ie s c o u ld b e r e d u c e d to L e n d in g of a a re w o o d la n d -fin a n c in g FARM W O O D L A N D S FO R E ST LAND ow ner h e lp in g B a n k s o f C o lu m b ia , S o u th s ta n d s f o re s te rs T h e re T o tal L a n d lA rea (M illio n s of a c re s ) th e fu n c s ta n d tim b e r a c tio n F O R E ST LAND AREA tim b e r w o o d la n d s u n d e r g o o d m a n a g e m e n t, c o n s id e r th e g ro w s r a p m o re of th e a re lo a n s , la n d s re in p ro p e rty . e c o n o m ic p a c ity o f fa rm fo re st p ro fita b le v ery By in T h e ir w ith in th e c a ttle c o u ld has le n d re c e iv e p rev en t th e c re d it it c a p ita l cash . O rle a n s , L o u is ia n a , tim th e th u s re g io n s w h e re tim b e r p o s s ib le it w o u ld c re d it by F ed eral L a n d Even th a t th a t e s s e n tia l p ro d u c tiv e in g a c tiv itie s o f th e F e d e r a l L a n d o f a t le a s t $ 8 0 0 . case, th e so la b o r o th e r w ith s h o u ld ta g e o u s ly re g u la r th e la b o r in c o m e In be of lik e im p o rta n c e m is s io n re m o v a l h ig h ly read y a s s e ts , re c o g n iz e d is fo r a an d u c tio n . c u ttin g c a lls m anner has of is o b ta in p ro d u c tio n a n d in c r e a s in g ly v a lu a b le tim b e r p ro d u c tio n . S in c e th e c le a ra lte rn a tiv e th is u n u su al cases h e b o r r e ta in s h is in c o m e - e a r n in g re v e n u e -p ro d u c in g p ro d u c in g to s u s ta in e d - re tu rn s , and h is in ow ner g ro w in g c o u ld p ra c tic in g T he h e rd liq u id a tio n c le a r h is tim b e r tio n . Eco h a rd w o o d fa rm e r C re d it u se d com d a ta such fin a n c ia l o b lig a tio n . E x c e p t in s e lls m e rc h a n ta b le p re v e n t c o u ld a d d itio n a l in c o m e g r e a te r th a n a lso p a r be to w ith w ho w o rth th e a d d itio n a l tim b e r in c o m e a liq u id a tio n w o u ld fa rm e r ro w s w h a t h e n e e d s a n d A g ric u ltu ra l o th e r h a n d , th e re c e iv e d u rin g s to c k w ith c u ttin g of m eet a y e a rs. F o u n d a tio n c re d it, no th e s ta n d , m anagem ent a b o u t $ 1 ,4 5 0 cash fo u n d fo r m any fa rm e r c o u ld y e a rs. If, o n y ie ld am ount red u ce s la rg e s t f o r m e e tin g a d e b t p a y m e n t, if h e n e e d e d le a s t 4 0 on a of been B u re a u $ 1 ,2 0 0 u se o f fo re s t v a lu e s . T h e o b ta in $ 1 ,2 0 0 c a s h th e how about th e m anagem ent on p r o f ita b le is th u s m a d e im p o s s ib le n o m ic s in o f c a p ita l v a lu e s in to 61 m o tio n of th e lo a n . T o m a k e a ti m b e r lo a n s o u n d , a d e q u a te fire p r o te c tio n , been th e p o s itio n c o u ld b e tte r a lso be w h ic h an he e ffe c tiv e fa rm -w o o d la n d u se. a m in im u m . o fte n o c c u p ie s , th e fo rc e th e p ro a p p ro a c h T h is in has p ro b le m s . m a in te n a n c e of s u ffic ie n t m ent and h a rv e s tin g fa rm la b o r m ig h t b e ro w e r s h o u ld and T h is fro m th e re g a rd annual th e th e g ro w in g fro m in v o lv e s , p re v a le n t and of a ttitu d e th e th e s to c k m anage use th e of b o r as p ro d u c tiv e c a p ita l a th e good m a x im u m le n d e r a n d tim b e r co u rse, th a t s to c k , th e r e q u ir e d . B o th g ro w th v ie w p o in t g ro w in g p ra c tic e s , s ta n d as th e fu n d a m e n ta l tim b e r s ta n d c ro p . change its e lf is th e c ro p . O nce h o w ev er, to fa rm F o re st th e ir p ro p e r lo a n s lo a n s w h ic h is a ttitu d e s on fa rm fo r o th e r f o r th e h is and sa fe g u a rd s w o o d la n d s p ro d u c tiv e w ill appear p u rp o se s. o w n e r o f v a lu a b le in c o m e - p r o d u c in g a re c o m p a ra b le O rd in a rily c a ttle c a p ita l, a c q u ire d , in to it s e ll h is o rd e r to th a t a c tiv itie s h a v e n o t o n ly th e m s e lv e s so. In p riv a te v ie w an of by i t is in and le n d in g be in o b ta in in g le n d in g fie ld . o p p o rtu n ity th e ir th e th a t th e case c o m m e rc ia l th e r e -e x a m in e d . an in in c u m b e n t fa rm to re s tric tio n s has le n d e rs such b a n k e rs o b ta in th e s e but a based on th e on le g a l banks o b v io u s expand p a rtic u la rly a d v a n ta g e s f o r have and to c o n c e p ts a v ita l re v is io n R . on need in te re s t of p res tim b e rla n d s . B r o w n do p o s s ib ilitie s re s tric tio n s tra d itio n a l re c o n s id e ra tio n to re s p o n s ib ility w o o d la n d s ’ e c o n o m ic C o m m e rc ia l e a rly s o il-c o n s e rv a tio n th e s e C o u n try m anagem ent a re of banks on c o m m u n itie s s u s ta in e d -y ie ld to ent te s te d fin a n c in g a d v a n ta g e s under th e is p o o r e c o n o m y h e rd , s u c c e s s fu lly R a w l in g s M 6 2 o n t h ly o f th e F e d e r a l R e s e r v e B a n k o f A tla n ta f o r M a y 1 9 4 7 R e v ie w Term Lending by District Member Banks O ne of th e m ost s ig n ific a n t d e v e lo p m e n ts in c o m m e rc ia l b a n k in g in th e S ix th D is tr ic t d u r in g th e p o s tw a r p e r io d has been th e th e g e n e ra l ra p id e x p a n sio n in c re a s e in bank s h o r t- te r m , o r s o -c a lle d th o s e lo a n s w h ic h in te rm lo a n s . le n d in g In c o n tr a s t to s e lf-liq u id a tin g , e x te n d fo r a a c c o m p a n y in g lo n g p e rio d of th e te rm tim e usual s iz e o f th e firm . A c c o r d in g to th e s u r v e y , b ig b u s in e s s e s m a d e p r o p o rtio n a te ly m o re o f th e ir b o rro w in g s fro m banks in h a v in g te rm lo a n s a s s e ts a re cent of th a n th a n a y e a r. In lo a n s lo n g e r th e of th a n m o re d o lla r d id th a n s m a ll fiv e m i llio n v o lu m e of th e ir S ix th D is tr ic t b u s in e s s e s . C o m p a n ie s d o lla rs lo a n s had 25 m a tu rin g in p er m o re c o n tr a s t, m e d iu m -s iz e d firm s , th o s e h a v in g a s- is n e c e s s a r y to p r o d u c e o r s e ll m o s t ty p e s o f g o o d s . A ll lo a n s m ade fo r m o re th a n one year a re g e n e ra lly c o n s id e re d te rm D O L LA R lo a n s . T e rm a V O L U M E H E LD lo a n s to c o m m u n ity , b u s in e s s e s c re a te n e w re g io n , or n a tio n . BY s o u rc e s o f in c o m e f o r L oans m ade fo r m o re O F S IX T H T E R M L O A N S D IS T R IC T N O V E M B E R th a n (In 20, thousands T O M E M B E R B U S IN E S S E S B A N K S O N 1946 of d o lla r s ) o n e y e a r a r e u s u a lly f o r fin a n c in g p u rc h a s e s o f e q u ip m e n t o r o f o th e r fix e d a s s e ts s u c h a s b u s in e s s p r o p e r t y W hen used d u s tria l th is m a n n e r, th e y fin a n c in g m a y a lso over in a as a re s to c k or bond is s u e s . T e rm of m ade to tim e , re fin a n c e o f in te re s t. T o fo r th e fin a n c in g and th u s th e y p ro v id e h ig h -c o st fu n d e d e x te n t th a t te rm b u s in e s s p re v io u s ly in c u rre d o f p riv a te b u s in e s s o f te rm of fu n d s fo r d e v e lo p m e n t d e b t, th e m ay ra th e r g ro w th of b e e s p e c ia lly and n a tio n a lly in lo w e r r a te th a n fo r Less $2 $10 M ore Banks Than to to Than $2 $10 $100 $100 re tirin g L e s s t h a n $ 5 0 , 0 0 0 ........... 1 3 ,7 0 4 293 3 ,7 9 9 6 ,6 4 3 2 ,9 6 9 $ 5 0 ,0 0 0 t o $ 2 5 0 , 0 0 0 . . . 1 9 ,0 2 7 61 3 ,2 0 5 9 ,9 9 3 5 ,7 6 8 $ 2 5 0 ,0 0 0 t o $ 7 5 0 , 0 0 0 . . . 1 1 ,2 0 7 284 3 ,9 0 9 7 ,0 1 4 $ 7 5 0 ,0 0 0 t o $ 5 , 0 0 0 , 0 0 0 . . 8 ,9 6 6 132 4 ,0 2 6 4 ,8 0 8 c a p a c ity p ro d u c tiv e in flu e n c e d le n d in g a n d th e e ffe c ts o f te r m re g io n a lly debt at a lo a n s , h o w e v e r, a r e u s e d M o re th a n $ 5 ,0 0 0 ,0 0 0 .. T o ta l a ll b o r r o w e r s * .. 129 7 7 ,9 2 2 3 ,5 9 6 2 0 ,0 2 7 7 ,5 4 9 .2 9 ,3 2 7 4 0 ,6 9 2 2 3 ,7 5 2 th e ra te by o f: M em ber Borrow er a lo a n s Total D e p o s it s , M illio n s# A ll b e u s e d to e n la r g e th e w o r k in g c a p ita l o f a b u s in e s s p e rio d w ith in Assets lo a n s h ig h e r le v e l o f b u s in e s s a c tiv ity . I n a d d itio n , s o m e te r m are Banks a n d b u ild in g s . a r e a s s ig n if ic a n t a id s to in 354 lo a n s m a y b e f e lt b o th lo n g -te rm changes in e m p lo y * I n c lu d e s s o m e te rm lo a n s n o t c la s s if ie d b y s iz e of b o r r o w e r . m e n t a n d in c o m e . S ix th D is tric t le n d in g in g at a d u rin g m em ber g re a te r ra te banks th a n in c re a s e d th e y th e ir lo n g -te rm d id th e ir s h o rt-te rm le n d 1 9 4 6 , a c c o r d in g to th e lim ite d d a ta a v a ila b le . T h e re c e n t F e d e r a l R e s e rv e b u s in e s s -lo a n s u rv e y s h o w e d th a t n e a r th e end o f N o v e m b e r 1 9 4 6 th e m e m b e r b a n k s o f th e D is tr ic t w e re le n d in g 7 7 .9 m illio n W h e re a s o n ly w ere p e rio d s fo r $14 out d o lla r s in te r m of o f m o re firm s m o r e th a n e v e ry th a n $100 a p o rta n t p a rt g io n . Som e q u ire in m o re b u ild in g of lo n g -ru n fu n d s fin a n c in g A s m ig h t b e lo a n s m a d e fo r of in g by th a n as 000 te rm T e rm g a th e re d te rm on to m ade In re q u ire m e n ts. th e se firm s lo n g e r th a n firm s a re O f fro m a th e to ta l y e a r. A lth o u g h c o m p a ra tiv e ly m ade m any am ount m ake te rm th e lo a n s f o r m o re th a n th e y c h e a p ly H ow fro m b o rro w fro m m uch a lso a y e a r. O th e r in m ost im p o rta n t D is tric t m em ber la rg e a m o u n ts in d u s try , banks th a t a re m o n e y m a rk e ts o u ts id e th e a b u s in e s s u s e s te rm c o n c e rn s, w h ic h d id little p ro b a b ly o b ta in e d be m o re D is tric t. lo a n s a ls o d e p e n d s o n th e to o f th e ir d o lla r to th e ir to ta l d o lla r b o rro w in g s m a ll b u s in e s s e s d iffe r s h a r p ly fro m l o a n s o f th o s e f ir m s w i t h a s s e ts o f $ 5 0 ,- lo a n s m a d e to L oans th e to th is re s e m b le to b u s in e s s e s w ith s m a ll b u s in e s s e s a s s e ts o f $ 5 0 ,ra re ly s p e c ific p u rp o ses fro m th e of each ty p e s of lo a n , had m a d a ta w e re m ay be o ffe re d it s e c u rity on fin a n c e p u rc h a se s re sp ect m a n y te rm c o n s u m e r-in s ta llm e n t o f s p e c ific ite m s lo a n s m a d e lo a n s m o re by of e q u ip s m a ll firm s c lo s e ly th a n th e y d o g e n e ra l- p u r p o s e , b u s in e s s -fin a n c in g lo a n s . A m ong c h e m ic a l firm s a n d s e rv ic e e s ta b lis h te x tile -m a n u fa c tu rin g D i s t r i c t ’s b o rro w in g cau se by b o rro w e rs w e re fo o d a n d m e ta l-p ro d u c ts m a n P a ra d o x ic a lly , up b o rro w e d p e rc e n t w as fo r p e tro le u m , c o a l, a n d u f a c tu r e r s a s w e ll a s c o n s tr u c tio n m e n ts . m oney lig h t b o rro w e rs , th e s e c o n c e rn s o f th e ir b a n k im p o rta n t te rm of D is tric t m e m b e r b a n k s , 4 3 fix e d -a s s e ts a s s e ts o f $ 5 0 ,- p erc e n t lo a n s b y s m a ll b u s in e s s b o r r o w e r s th a t th e s e lo a n s w e re m e n t. heavy m ade c o n c lu d e and have 16 tu ritie s e x te n d in g b e y o n d th re e y e a rs . A lth o u g h n o o fte n c o m p a n ie s , w h ic h p e rc e n t b o rro w lo a n s a n d th e r e f o r e w e re a c tu a lly h e a v ie r p ro p o rtio n $ 2 5 0 ,0 0 0 . th e S ix th D is tr ic t, a c c o r d in g to th e s u rv e y , w e re p u b lic - u tility tra n s p o rta tio n 12 la r g e r b u s in e s s e s , a c c o r d in g to th e s u rv e y . T h e f o r te rm to p o s s ib le b o rro w e rs in o n ly lo a n s . T e r m firm s , h a v in g a p p ro x im a te ly a v e r a g e s iz e o f te r m on e x p e c te d , th e h e a v ie s t lo n g - te r m s u s p e c te d . T h e s e had lo a n s tu rn in g -o v e r in v e n to rie s . m o re te rm 0 0 0 a n d le s s w a s o n ly $ 3 ,0 6 4 , c o m p a r e d w ith t h e $ 1 7 ,1 3 8 a v 000 p ro p o rtio n a te ly c o n s ta n tly le s s , b o rro w e rs in e ra g e and d o lla rs , h a d in th a n w e re th e m e d iu m -s iz e d firm s . re e q u ip m e n t m illio n b o rro w in g s b o rro w in g s in te rm re fin a n c in g fiv e s m a lle s t b u s in e s s e s , h o w e v e r, w a s m o re im p o r ta n t th o s e m a d e to a n im to bank been and th is in th e had m a n u fa c tu rin g , d e v e lo p m e n ts $ 5 0 ,0 0 0 o f th e ir to ta l up b o r r o w e r s d is c lo s e s th e such d o th o s e th a t b o rro w fo r b u s in e s s e s D is tric t b a n k s a r e p la y in g b u s in e s s e s , lo n g -te rm th a n s h o rt te rm fin a n c in g ty p e s to m e d iu m -s iz e d b a n k s . Id e n tific a tio n o f th e p r in c ip a l te rm w h ic h lo a n e d y e a r, th e s e h a v e s o m e o f th e f ie ld s o f b u s in e s s in lo a n s to b u s in e s s e s . s e ts a p p e a rs m em ber to be a banks fa irly in th e S ix th w id e s p re a d D is tric t te rm p ra c tic e le n d in g b e c a u se a p p ro x i m a te ly th re e o u t o f f o u r o f th e s u rv e y e d b a n k s r e p o r te d so m e te rm lo a n s to b u s in e s s e s in th e r e c e n t s u rv e y . A lm o s t 9 0 p e r c e n t o f th e la r g e s t b a n k s , th o s e h a v in g to ta l d e p o s its o f m o re th a n 1 0 0 m illio n tio n a te ly few er th e s u rv e y . O n ly 10 m illio n d o lla rs , m a d e so m e te rm o f th e s m a lle r b a n k s lo a n s , b u t p r o p o r re p o rte d te rm lo a n s in 6 8 p e rc e n t o f th e b a n k s h a v in g fro m d o lla rs in d e p o s its h a d te rm tw o to lo a n s o u ts ta n d in g at th e tim e o f th e s u rv e y . B anks lo a n s but d iffe re d a ls o in n o t o n ly th e in th e ir w illin g n e s s to p ro p o rtio n o f th e ir to ta l m a k e te rm lo a n s w h ic h M o n t h ly w e re in o f th e F e d e r a l R e s e r v e B a n k o f A tla n ta f o r M a y 1 9 4 7 R e v ie w te rm lo a n s . la r g e r b a n k s C o n tra ry as a g ro u p m o re h e a v ily in te rm in to th e usual th e S ix th o f th e ir to ta l b u s in e s s lo a n s th a n as g ro u p . te rm A lth o u g h lo a n s at p ro p o rtio n th a n a ll, not engage le n d in g in p r o p o r tio n to th e d o lla r v o l um e a a s s u m p tio n s , th e D is tric t d id m any th o s e of th a t th e d id d id banks th e m m ade had m o s t fre q u e n t te rm le n d e rs , in A p p a re n tly , th e to ta l th e o p p o s ite ends of th e s iz e sc a le , th e la rg e s t and and are K ansas C ity p re d o m in a n tly D is tr ic ts , w h ic h a g ric u ltu ra l, b e tw e e n in o th e r d is tr ic ts m a y b e a ttr ib u ta b le to th e h o w e v e r, D is tric ts D is tric t fo rm 25 lo a n s . lo a n s a r e u s e d le s s in th e S ix th D is tr ic t th a n to rs . n u m b e r o f b u s in e s s lo a n s m a d e , w e re th e tw o g r o u p s o f b a n k s at T h a t lo n g -te rm a re in one year to S t. L o u is D is tric t th e y S ix th p ro p o rtio n th e A tla n ta no d id th e a v e ra g e S ix th D is tric t b a n k . T he b o th g re a te r a o f b u s in e s s lo a n s m a tu r in g in m o re th a n in th e p e rc e n t o f th e a m o u n t o f b u s in e s s lo a n s w a s in te r m th e s m a lle r b a n k s s m a lle r m ake even lik e 63 is not w e re d iffe re n c e one of le n d in g o f b u s in e s s a in th e m lo a n s sev eral fa c s iz e s becau se s m a lle r te rm th e of p r o p o rtio n th a n banks banks w ere in of th e m oney banks of th e s a m e s iz e in o th e r d is tr ic ts . th e D iffe re n c e s in e c o n o m ic c h a ra c te ris tic s b e tw e e n d is tric ts s m a lle s t b a n k s . S ix te e n p e r c e n t o f th e la r g e s t b a n k s ’ b u s in e s s a c c o u n t f o r s o m e o f th e v a r ia tio n s in te r m -lo a n u s e . W h e re a s lo a n s a n d banks 1 9 p e r c e n t o f th e s m a lle s t b a n k s ’ w e re in te rm a g a in s t a n a v e ra g e o f o n ly 14 p e rc e n t fo r a ll lo a n s s iz e s o f m e m b er banks. M uch in th e N ew Y o rk D is tric t a re c lo s e ly c o n n e c te d w ith m a n u f a c tu r in g a c tiv ity , m a k in g 4 7 p e r c e n t o f th e ir d o lla r v o l u m e o f b u s in e s s lo a n s to m a n u f a c tu r e r s a n d m in in g c o n c e rn s , o f th e o f v a rio u s d iffe re n c e in th e s iz e s m a d e te r m e n t v a ria tio n s in th e fre q u e n c y w ith w h ic h lo a n s is a c c o u n te d p o lic ie s re g a rd in g te rm banks fo r b y lo a n s ap p a r to s m a ll S ix th D is tric t b a n k s lo a n s to m ake th e s e firm s . I n c u s to m e rs of o n ly 27 p e rc e n t o f th e ir b u s in e s s c o n tra s t, p r o p o r tio n a te ly m o re o f th e D is tric t banks are w h o le s a le rs and re ta ile rs b u s i n e s s e s . T h e l a r g e s t b a n k s a p p a r e n t l y 'm a k e p r o p o r t i o n a t e w h o , b e c a u s e o f th e c h a r a c te r o f th e ir b u s in e s s , n e e d a s m a ll ly e r a m o u n t o f lo n g -te rm m o re te rm lo a n s in lo w a m o u n ts to s m a ll b u s in e s s e s th a n d o a ll b u t th e s m a lle s t b a n k s , th o s e h a v in g a s s e ts o f le s s th a n tw o m i lli o n d o l l a r s in d e p o s its . O r, s ta te d in a n o th e r w a y , m e d iu m -s iz e d b a n k s m a k e te r m b u s in e s s e s th a n d iffe re n c e s in do even th e lo a n s in la r g e r a m o u n ts to s m a ll th e a v e ra g e la rg e s iz e s banks. o f te rm T h is is sh o w n lo a n s m a d e to by firm s A p a rt tw e e n u se o f te rm fu n d s, w as th e b o th th a n 100 w e re $ 2 ,6 3 2 m illio n fo r d o lla rs , banks $ 3 ,2 3 7 h a v in g fo r d e p o s its banks of h a v in g m o re d e p o s its o f 1 0 to 1 0 0 m i l l i o n d o l l a r s , $ 3 ,3 6 1 f o r b a n k s h a v i n g d e p o s it s o f tw o to 1 0 m illio n p o s its le s s th a t of th e la rg e r b u s in e s s firm s of banks th a n A tla n ta D is tric t b a n k s b u s in e s s -lo a n a v e ra g e of 34 in p e rc e n t. in in have d e v e lo p e d has been banks te rm te rm 14 N ew Y o rk in D is tric t le n d do to banks th e w ith o f th e d o lla r v o lu m e o f b u s in e s s lo a n s w a s in te r m in su rv e y , to ta l a n a tio n a l D is tric t 4 4 not p e rc e n t lo a n s a n d LOANS A p p a re n tly o f b u s in e s s titu d e s of M ATURITY OF LO A N S 1 3 .8 F in a lly , to 10 lo n g -te rm lo a n s lo a n s in th e h e ld by is d e p o s its 1 7 2 .4 3 0 .5 2 ,4 3 6 1 8 .4 q u e n tly 17 .4 3 ,1 3 0 2 3 .7 7 .4 1.3 546 4.1 such lo a n d o lla r a ttitu d e a h ig h m uch to do S y ste m b a n k s in th a n h e a v ie r b a n k D is tric t b a n k in g even if banks p e rc e n t w e re 1 4 .9 p e r th e N ew Y o rk D is tric t. d iffe re n c e g re a te s t b e tw e e n in had b u s in e s s 25 o n ly fiv e 5 .9 p e r lo a n s , w h e re a s p e rc e n t. debt in and S ix th D is b o rro w e rs. th e U n a m o n g b u s in e s s firm s in th e a d d itio n , d u r in g th e tw o th e in liq u id ity of bank a s im p o r ta n t in th e S ix th th e 3 y e a rs to 4 y e a r s 6.1 1.1 217 1.6 to 5 y e a r s 11 .0 1.9 654 4 .9 1 7 .4 A lth o u g h te rm a b le o n ly 3 .3 th e lo n g -te rm c o u n try , lo a n s th e re is on th e m e th o d s is bank T he le ft th e ir m a rk a s s e ts is conse on S ix th im p a ire d , te rm lo a n s o f te rm te rm th a t re la tiv e ly le n d in g e d u c a tio n of fin a n c in g of b o th le n d in g o f th e c o u n try o f b u s in e s s is not yet D is tr ic t a s i t is in o th e r s e c tio n s o f e v id e n c e b e c o m in g e x p a n sio n s ta b ility 1 0 0 .0 have a fa s te r ru n -o ff o f d is tric ts . m a y a c t to s ta b iliz e b u s in e s s c o n d itio n s . 2 .4 4 y e a rs in d u s tria l p o lic ie s . T h e r e is s o m e b e l ie f , h o w e v e r , t h a t 315 th e m a tu rity o n e t o fiv e y e a r s a g a i n s t in it. I n fa ilu re s 1.9 1 3 ,2 3 1 o th e r D is d o lla r v o lu m e 3 3 .2 a g r ic u ltu ra l d is tric ts h a d d id 10 .8 1 0 0 .0 in d iffe re n t re g io n a l a t le n d e rs ra te w ith 2 y e a r s to 3 y e a r s 5 6 5 .2 th e to m o rta lity 3 .6 T o ta l to lo n g -te rm com m on 4 .9 423 th o s e s in c e le s s o f Y o r k D is tric t. S im ila r ly , 7 v o lu m e re g a rd in g p ro b a b ly 647 .9 d id D is tric t m e m b e r b a n k s 476 4 .8 firm s , o f b u s in e s s lo a n s m a tu r in g in f r o m 2.1 O v e r 10 y e a r s a n d u n c la s s ifie d lo n g - te r m D is tric t h a d d e b t. O f th e to ta l show ed 3 .8 2 ,3 1 2 b u s in e s s m em ber banks m a tu ritie s 12.1 5 .9 th e m a jo r d e p r e s s io n s s in c e th e e s ta b lis h m e n t o f F e d e r a l R e s e rv e P ercen t 9 8 .7 3 3 .2 of d iffe re n c e in Y o rk b a n k s h a d m o re th a n D is tric t h a s 1 5 .7 10 y e a r s of S ix th o n ly th e N e w 2 1 .3 5 y e a r s to be in o th e r D is tric ts . T h is th e A tla n ta D is tr ic t, w h e re a s o n ly su rv e y c e n t o f th e ir 2 ,0 7 4 1 year th e in lo a n s th a n 1 y e a r to 2 y e a r s 9 m o n th s to s iz e s in is a s c r ib a b le y e a rs . S ix th 3 3 .2 6 m o n th s to 9 m o n th s te rm d is tr ic ts in th e g r o u p D o lla r A m o u n t ( in M illio n s) 90 d a y s to 6 m o n th s d iffe rin g a m a jo r p a r t o f th e p e r c e n t w ith P e rc e n t 90 d a y s in p ro p o rtio n D is tric t h a d m a tu ritie s r u n n in g fro m 1 8 7 .4 L e ss th a n of banks v a ria tio n p e r c e n t o f th e d o lla r v o lu m e o f b u s in e s s lo a n s in th e A tla n ta D o lla r A m o u n t (in M illio n s) D em and s m a lle r w e re th o s e c e n t w e re o f th is ty p e in T h is U NITED STA TES of re g a rd in g d o u b te d ly SIX TH D IST R IC T a s m a ll firm s lo a n s b u s in e s s tric t O N N O V E M B E R 20, 1946 re s u lt c u s to m e rs th e S ix th D is tric t. R e ta ile r s in th e S ix th b o rro w in g and th e u n e x p la in e d tr ic ts . th e N e w M A T U R IT Y O F M E M B E R B A N K a la rg e in is s til l a n f o r e x a m p le , th a n dem and p e rc e n t o f th e ir lo a n s , c o m p a r e d th e th e ir s m a ll banks. th a n c o u n try . A c c o rd in g to in c re a s in g o f th e lo a n s a p p e a rs a m o u n ts m e d iu m -s iz e d o u ts ta n d in g In I t th e re fo re s m a ll le n d in g m em ber o f th e fu n d s D is tric t o f th e m oney had d o lla rs . lo a n s som e th e le s s m o s t o th e r s e c tio n s th e th e th a t te rm D is tric t, p ro p o rtio n a te ly in te rm have e v id e n c e m illio n fu n d s. d iffe re n c e s lo a n s in w ere th e ir b o rro w in g s d o ll a r s , a n d $ 1 ,4 4 3 f o r b a n k s h a v i n g d e tw o m a k in g m o re D e s p ite th e th a n th e d is tric ts , th e re D is tric t w ith a s s e ts o f le s s th a n $ 5 0 ,0 0 0 . T h e s e a v e ra g e s , a c c o r d in g to su rv e y , fro m th e p ra c tic e m o re of m a k in g A ny s iz w ill n e v e rth e le s s d e p e n d not b a n k e rs but on p re v a le n t. and th e b u s in e s s m e n g e n e ra l a n d th e D is tr ic t. T ho m a s R. A in e c o n o m ic t k in s o n M 6 4 o n t h ly o f th e F e d e r a l R e s e r v e B a n k o f A tla n ta f o r M a y 1 9 4 7 R e v ie w The District Business Situation Small-Town Unemployment and New Industries I N th e m id st of n a tio n a l “ fu ll e m p lo y m e n t” and p e a c e -tim e p r o s p e r ity th e r e s till a r e p o o ls o f s u r p lu s in m any s m a lle r m a jo r S ix th th e c o m m u n itie s of th e D is tric t. D is tr ic t b a n k s h a v e a p p a r e n tly m a d e s u b s ta n tia l lo a n s to n e w re c o rd la b o r U n lik e m ost D is tr ic t c itie s , w h e r e b u s in e s s d e v e lo p m e n t s in c e w ar has u s u a lly have heavy m eant p ro p o rtio n s abundant jo b s , th e y o f u n e m p lo y m e n t. In c o n tin u e th e S ix firm s , s in c e n e a r th e e n d o f 1 9 4 6 a p p r o x im a te ly o n e t h i r d th e d o lla r d u r in g F e b r u a r y a n e s tim a te d 2 1 7 ,0 0 0 w o r k e r s e lig ib le f o r u n to w e ll as jo r m ent by th e m b e in g v e te ra n s . T h is fig u re , h o w e v e r, th e re a so n s p a rtic u la rly u res. To o fte n c o m p lic a te b a la n c e th is b e tw e e n w o rk e rs, w h o p a rtia lly id le p ic tu re , in e m p lo y m e n t a r e n o t in c lu d e d in th e s o m e to w n s th e m en and s e rio u s u n w om en m a n u fa c tu rin g been e s ta b lis h e d in firm s th e w as p rece d th a t e n o u g h lo c a l m a n a g e ria l ta le n t e x p e rie n c e d w o rk ers a re A a re n o t g iv e n d e v e lo p m e n t g ro u p s . p ro b le m s a re re c e n t su rv e y im p o rta n t by th e m o re C e rta in ly cau ses e n c o u ra g e p e rso n n e l and b u s in e s s fa il C o m m erce d is of D e p a rtm e n t o f c lo se s th a t th e m a n u f a c tu r in g f irm s w h ic h w e re s o ld o r liq u i o r u n d e re m p lo y e d . of sm a ll lo c a l e n te rp ris e s m a n a g e ria l s in c e f a r m fe e lin g th e s e u n d e r s ta te s th e u n e m p lo y m e n t in s m a ll to w n s a n d r u r a l a r e a s , e s tim a te s , a r e to th a t h a d n o t a v a ila b le to s ta f f a s u c c e s s f u l c o n c e r n th a t m a y b e th e m a 60 of lo a n s I t is r a t h e r a la c k o f c o n fid e n c e in as e m p l o y m e n t i n s u r a n c e a n d v e t e r a n ’s b e n e f i t s w e r e o u t o f w o r k , p erc e n t of c o m p a n ie s i n g fiv e y e a r s . to S ta te s v o lu m e m ade w o rk ers d a te d d u rin g th e second c o m p e te n t e m p lo y e e s q u a rte r n e x t to of 1946 te m p o ra ry lis te d th e m a te ria l la c k and of e q u ip m a y m e a n th a t c h a n g e s in th e s o c ia l s tr u c tu r e a r e in th e m a k m e n t s h o rta g e s a s th e in g . I n s o m e s m a lle r c o m m u n itie s th e w o m e n a r e e m p lo y e d in M o r e o v e r , th e s u r v e y r e v e a le d t h a t tw o f if th s th e s o ld o r li q u i m o s t im p o r ta n t c a u s e f o r th e ir a c tio n . t h e t o w n ’s s o l e i n d u s t r y , a n a p p a r e l f a c t o r y o r c a n n i n g p l a n t , d a te d firm s f a ile d to k e e p th e a c c o u n tin g r e c o r d s r e q u ir e d f o r w h ile th e e ffic ie n t m en keep house an d p a rtm e n t o f th a t m ost of th e in d u s trie s p la n ts w h ic h e m p lo y a n “ If in d u s trie s w ag e ra te seek w o rk . T h e T e n n e sse e D e E m p lo y m e n t S e c u rity s ta te s in e n te rin g th e its m a rk e t le tte r s ta te a re a p p a re l veyed an m en a re n o t lo c a te d in at a c e rta in re a s o n a b ly s a tis fa c to ry s e c tio n s ,” th e le tte r c o n s h o u ld su rv e y fro m p la n n e d som e to b e o n e o f u n m e a s u re d u n e m p lo y m e n t a s w e ll a s o n e o f u n s ta ff th e la s t th re e m o n th s o f 1946 th e n u m b e r o f new a of s ta te s th a n v a te p lo y e rs s u b je c t to tr ic t s ta te s on u n e m p lo y m e n t-c o m p e n s a tio n O c to b e r 1, a n d th re e m o n th s em la w s in D is la te r th e re w e re of la c k b u s in e s s ta le n t in th e ir o n ly 3 .4 p e rc e n t. T h o u g h m any o f th e s e firm s m a y o th e r lo c a lity . s p e c ific n e w S till o th e rs have p ro g ra m s in d u s try la b o r. in p ro b le m s re se a rc h by new m uch e n te rp ris e s a g e n c ie s . T h e s e g iv in g n e w , lo c a lly f o r m e d ceed and th u s re lie v e w a s in d ic a te d b y th e 2 0 a ttra c t n ew in d u s trie s m any c o m m u n itie s h a v e o ffe re d it w ith has a been fro m p u b lic have and p ri p o s s ib ilitie s of e n te r p r is e s a b e tte r c h a n c e to s u c u n e m p lo y m e n t. T. R. A. L ittle To th a t fitte d Finance have a s g re a t a s e v e r. be p ro v id e e m p h a s is m e a su re s s m a ll-to w n p o rtu n itie s th e s e to w n s is p r o b a b l y and s u g g e s te d m ig h t w e ll o r d e r to R e c e n tly b e e n e s ta b lis h e d in s m a ll to w n s , th e n e e d f o r e m p lo y m e n t o p in su r c o m m u n ity 5 6 ,2 8 2 , a n in c r e a s e o f 4 .4 p e r c e n t a g a in s t a n a t i o n a l i n c r e a s e of th e o f c a p ita l p la c e d o n th e o b ta in in g o f c o m p e te n t a d v ic e o n s c ie n tific a n d b u s in e s s th e r e s t o f t h e c o u n t r y . T h e r e w e r e 5 3 ,9 3 1 th e s k ille d a n d e n la r g in g b u s in e s s e s w a s g r o w in g f a s te r in S ix th D is tr ic t in p e rce n t fa ilu re . v o c a tio n a l-e d u c a tio n a ro u n d b a la n c e d D u rin g 10 w h e n c o m p e te n t m a n a g e r s a r e n o t o b ta in a b le th e r e h ir e th e m c lu d e s , “ a la r g e s c a le o u t- m ig r a tio n is s u r e to r e s u lt.” A p p a r e m p lo y m e n t. O n ly c o n c e rn s c o n s id e re d th e im p o rta n t c a u se o f th e ir e n tly th e p r o b le m in m a n y s m a ll to w n s a n d r u r a l a re a s se e m s m a n a g e m e n t. S o m e w r ite r s h a v e s u g g e s te d th a t lo c a l d e v e lo p m e n t g r o u p s “ o v e r w h e lm in g m a j o r it y o f w o m e n .” e m p lo y in g b u s in e s s m a n u fa c tu rin g p o rt le n d in g a c tiv ity w e e k ly . d u rin g A p ril a n d S ix th R e p a y m e n ts th e f irs t h a lf o f M a y D is tric t m e m b e r b a n k s th a t r e exceeded b o rro w in g s , w ith th e re s u ita b le lo w -re n t b u ild in g s to “ o u ts id e ” e n te r p r is e s a n d o th e rs s u lt th a t have u sed d o lla r s , w e re a t th e ir lo w e s t p o in t s in c e N o v e m b e r 1 3 , 1 9 4 6 . e x te n s iv e c a m p a ig n s o f p u b lic ity and n o n fin a n c ia l on M ay 14 to ta l lo a n s , a m o u n tin g , to 574 m illio n a s s is ta n c e . B e c a u s e c o m p e titio n f o r th e lim ite d n u m b e r o f e x B e c a u s e to ta l lo a n s a t th e m e m b e r b a n k s o u ts id e r e s e r v e c itie s p a n d in g w ere p la n ts spent m oney ta in e d . b o th is and C e n tra l p u b lic and heavy, p o s s ib ly e ffo rt o u t o f som e p ro p o rtio n in d u s tria l-d e v e lo p m e n t p riv a te , w hen c o m m u n itie s asked to th e re s u lts p la n n in g fo r have a d v ic e , ob a g e n c ie s , th e re fo re , of h ig h e r th e a t th e end to ta l y e a r, lo a n s o f A p ril of a ll th a n th e y m em ber w e re banks a t th e w e re firs t up, but o n l y 1 .5 p e r c e n t . O n th e b a s is th e re c e n t su rv ey b u s in e s s a n d p e r s o n a l d e p o s its a t a ll c o m m e rc ia l b a n k s in th e u n e m p lo y m e n t h a rd s h ip s . D is tric t, s till m a k in g e n c o u ra g in g m any beset to w n -d e v e lo p m e n t lo c a l e n te r p r is e s , a n d new g ro u p s m any b u s in e s s h e s ita n t g ro u p s a re are about s till re c o rp o ra tio n s h a v e in b o th m em ber and th a t in d iv id u a ls , of s h ip s , a n d w h ic h d e p o s its in r a th e r th a n c o u n t o n o u ts id e firm s to c o m e in a n d r e lie v e th e ir d iffic u ltie s dem and g a th e re d to w n s e n c o u r a g e th e d e v e lo p m e n t o f lo c a l b u s in e s s e n t e r p r is e s th e of f ig u re s th e A p p a re n tly o w n e rs h ip of h a v e f o u n d it in c r e a s in g ly n e c e s s a r y to r e c o m m e n d th a t s m a ll S ix th p a rtn e r D is tric t m e m b e r b a n k s , n o n m e m b e r, on F e b ru a ry 27 a m o u n te d to 4 .3 b i l l i o n d o l l a r s . T h e s e d e p o s it s w e r e a p p r o x i m a te ly o n e p e r c e n t le s s th a n th e y w e re o n J u ly 3 1 , 1 9 4 6 , th e la s t s u rv e y d a te , a n d 4 p e rc e n t m o re th a n th e y w e re a t th e e n d ly in g o n th e h o p e th a t s o m e o u ts id e firm s w ill s o lv e th e ir u n of Ja n u a ry e m p lo y m e n t p r o b le m . T h e m a jo r tr a d itio n a l d iffic u lty f a c in g F e b r u a r y o f th is y e a r w a s th e firs t th a t th e D is tr ic t b a n k s a s a new g ro u p had 1943. C h ie fly b u s in e s s — th a t o f r a is in g c a p ita l— n o lo n g e r se e m s, h o w e v e r, to be a s im p o rta n t a s it o n c e w a s. L ittle d iffic u lty has 1 9 4 6 . T h e d e c lin e had s in c e th e it w a s th e f o r th e seven s e m ia n n u a l s u rv e y c e s s a tio n o f th e m o n th s e n d e d w a s in itia te d in in T r e a s u r y ’s b o r r o w b e e n e n c o u n te r e d in r a i s i n g f u n d s a m o n g lo c a l r e s id e n ts to fi in g a n d s p e n d in g f o r w a r p u r p o s e s in th e D is tr ic t, w h ic h h a d n a n c e d e v e lo p m e n t c o r p o r a tio n s s tim u la te d O c to b e r 31 is s u e of th e M o f th e o n t h l y ty p e R e v i e w . d e s c rib e d in th e M o reo v er, S ix th c lin e . an e x p a n sio n o f to ta l d e p o s its , th a t c a u s e d th e d e M o n t h ly In an haps o f th e F e d e r a l R e s e r v e B a n k o f A tla n ta f o r M a y 1 9 4 7 R e v ie w a p p r a is a l o f p o s tw a r f in a n c ia l d e v e lo p m e n ts , o f p e r m o re s ig n ific a n c e th a n th e change in th e to ta l S ix th to bank and fro m o n e ty p e o f o w n e r to th o u g h th e r e w a s a s m a ll c h a n g e f r o m w ere a num ber of c o u n te ra c tin g fro m bank to b u s in e s s and p erso n al se v e n m o n th s fo llo w in g J u ly th a n th e d e p o s its d e c lin e d d u rin g th e fro m le s s 1 9 4 6 a t ra te s ra n g in g o n e p e rc e n t to m o re th a n 3 0 p e rc e n t. A t th e o th e r b a n k s d e p o s its e ith e r re m a in e d v a ry in g u p to and p erso n a l y e a r th a n th e y h a d posed of m illio n a t ra te s w e re c la s s ifie d b y th e a m o u n t o f th e ir d e p o s its , w e re e s tim a te d b u s in e s s o r in c re a s e d 2 5 p e r c e n t. A s g r o u p s b o th th e la r g e s t a n d th e s m a lle s t b a n k s , w h ic h dem and unchanged banks d e p o s its to at h a v e g r e a te r a m o u n ts o f th e end of F e b ru a ry a t th e e n d o f J u ly , 1 9 4 6 . T h e g ro u p w ith dem and d e p o s its d o lla r s w a s th e o n e th a t h a d of one A d ju s te d * * P la c e M o n tg o m e r y .. . N a s h v ille ........... N ew O r le a n s ... th is to n o n b u s in e s s b u s in e s s d e p o s its d e p o s ito rs e x c lu s iv e th a t a d e c lin e . d e c re a se d . A lth o u g h non in c re a s e d 2 ESTIM A TED D EM A N D D E P O S IT S O W N E D BY IN D IV ID U A L S P A R T N E R SH IP S , AND C O R P O R A T IO N S IN ALL C O M M E R C IA L BA NK S IN TH E SIX TH FED ER A L R ESER V E D IS T R IC T ( I n M illio n s of D o lla rs ) F e b ru a ry 1947 T y p e o l O w n e rsh ip 475 M a n u f a c tu rin g a n d m i n in g .. P u b lic u tilitie s , tr a n s p o r t a tio n , a n d c o m m u n ic a tio n s . R e ta il a n d w h o le s a l e t r a d e . . A ll o th e r n o n f in a n c ia l* ........... T o ta l n o n f in a n c ia l............. I n s u r a n c e c o m p a n ie s ................ T r u s t f u n d s of b a n k s ................ A ll o th e r f in a n c ia l* * ................. T o ta l f in a n c ia l...................... T otal Bu s in e s s .................... N o n p ro fit o r g a n i z a ti o n s ........... P e rso n a l F a r m e r s ...................................... O t h e r s .......................................... F o r e i g n .................................. .......... T otal I ndividuals , P art n ersh ips , and C orpor a t io n s ....... ................................ P e rc e n t C hange J u ly 1946F e b . 1947 21 54 7 63 i 0 5 6 69 17 — 9 __ 6 + 3 — 3 — 1 + 1 — 2 _ i — 3 + 18 5 .2 19.8 5.9 41.9 1.7 1.2 5.1 8.0 49.9 2.1 — 6 + 36 H- 1 2 4* 2 + 113 9.3 38.1 .0 226 855 255 1,811 72 51 222 345 2,156 115 — —. + — __ + — — — + 400 1,648 2 4,321 + — — 21 d u rin g 1946 and, in a d d itio n , s o ld c re d it th a n th e y h a d th e r d e c lin e expanded m o re ness d e p o s its , a m o u n tin g and A p r. 1946 A p r. 1947 M a r. 1947 A p r. 1946 D IS T R IC T ............. A tla n ta ............. B ir m in g h a m .., M o n tg o m e r y .. N a s h v ill e ......... N e w 1 O r le a n s . 320 371 237 322 423 321r 405 227 315 450 310 220 317 395 246 347 469 319 321r 413 233 334 468 327 217 337 167 215 345 155 to 6 p erce n t th e ir in v e n to rie s o f th e ir fo r goods r e s p e c t to m ay in d ic a te th e u s e o f fu n d s f o r p o s tw a r d e v e lo p m e n t p ro g ra m s . I n tr a s t to in th e s e d e c re a se s, a n m a n u fa c tu rin g T he of F e b ru a ry th e y w e re to ta l th e s e on d e p o s its d e p o s its th e w e re o n ly o th e r th a n in w e re p re c e d in g g r e a t a s th e y w e re in w h ic h of 5 p e r c e n t to o k con p la c e d e p o s its . d e p o s its o f p e rs o n s p erce n t in c re a s e f a r m e r s c o n s titu te d F e b ru a ry n o t o n ly su rv e y 1947. 2 d a te A t th e end 38 of p e rc e n t m o re th a n but th re e tim e s M a r. 1947 F eb. 1947 M a r. 1946 M ar. 1947 F eb. 1947 M a r. 1946 S IX STA TES A la b a m a ............. 117 124 70 136 100 134 138 124 144 78 143 97 151 105 116 137 48 147 79 113 204 115 124 73 140 94 126 124 122 144 81 140 93 145 95 114 137 50 151 74 106 184 A p r. 1916 A p r. 1947 M a r. 1947 A p r. 1946 169 181 167 133 170 179 171 129 ,159 164 .160 128 117 124 173 181 12 14 i55 *8 io i a h a l f tim e s a s g r e a t. S m a ll G A S O L IN E TAX C O L L E C T IO N S Feb. 1947 M a r. 1946 A p r. 1947 144 154 127 133 135 157 155 S IX S T A T E S .. A la b a m a ... F lo r id a ......... G e o r g i a ___ L o u isia n a . .. M is s is s ip p i. T e n n e s s e e .. 145 155 129 135 133r 159r 155r 133 137 119 127 132 138 140 170 175 187 159 152 160 180 M a r. 1947 A p r. 1946 153 157 155 164 142 137 154 184 161 179 144 142 144 140 C O N S U M E R S ' P R IC E IN D EX EL EC TR IC P O W E R P R O D U C T IO N * M a r. 1947 F eb. 1947 M a r. 1946 M a r. 1947 F eb. 1947 M a r. 1946 163 159r 193 177r n .a . 134 145 148 115 307 313 253 325 326 310 284 297 178 ALL I T E M S .. F o o d ........... C lo th in g ... R e n t............. F u e l, e le c . a n d ic e .. H om e fu r n is h in g s . M is c ............. P u r c h a s in g p o w e r, of d o ll a r , . i . . 202 180 n .a . 121 121 111 177 141 172r 140r 148 132 .61 .63 A NN U AL RATE O F TU RN O V ER O F D EM AN D D E P O S IT S A p r. 1947 A p r. 1947 U n a d ju s te d . A d ju s te d * * .. SIX STA TES. H y d ro g e n e r a te d F u e l g e n e ra te d .75 C R U D E P ETR O LE U M P R O D U C T IO N IN C O A S T A L L O U ISIA N A AND M IS S IS S IP P I* as p e r s o n a l d e p o s its a r e o f c o u rs e th e ty p e n e e d e d to s u p p ly th e C O A L P R O D U C T IO N * M a r. 1947 M a r. 1947 1 9 4 3 , in c o n tr a s t w ith b u s in e s s d e p o s its about one and U n a d ju s te d P la c e fo r p u b lic -u tility , c o m p a n ie s , 299 317 161 199 311 145 M A N U FA C T U R IN G EM PLOYM ENT*** d e c lin e o f 9 n o r m a l p ra c tic e s w ith c o m m u n ic a tio n U n a d ju s te d M ar. 1947 T O T A L ...................... A la b a m a ............. G e o r g i a ............. T e n n e s s e e ......... in v e n to rie s a n d c r e d it a r e re s u m e d . T h e o th e r d e c lin e in b u s i tra n s p o rta tio n , 336 376 362 318 350 325 421 355 837 324 320 399 302 420 A d ju s te d * fo rm e rly . T h e re w ill p r o b a b ly b e a f u r a s m o re n e a rly 346 392 362 332 351 311 392 314 317 396 338 407 301 459 A p r. 1947 f o r th e g r e a te r p a r t o f th e d e c re a s e in to ta l b u s in e s s d e p o s its . w h o le s a le rs 350 366 383 322 344 324 434 312 310 369 332 406 319 482 A p r. 1947 100.0 1 p e rc e n t, b u s in e s s d e p o s its d e c re a s e d 3 p e rc e n t. A and 327 383 339 317 329 319 421 351 329 318 316 377 294 392 C O T T O N C O N S U M P T IO N * p e r c e n t in th e d e p o s its o f r e ta ile r s a n d w h o le s a le rs a c c o u n te d re ta ile rs 346 374 356 331 358 322 394 315 329 341 357 412 317 458 DEPA R TM EN T S T O R E S T O C K S G e o r g i a ............... L o u i s i a n a ........... M is s is s ip p i......... T e n n e s s e e ......... a i n c l u d i n g c o n s tr u c tio n - c o n tr a c tin g e s ta b lis h m e n ts , t h e a t r e s , ■ n d h o te ls , la u n d r ie s , g a r a g e s , r e p a i r s h o p s , a n d o th e r s e r v ic e e s ta b lis h m e n ts . * * In c lu d in g in v e s tm e n t, lo a n , a n d i n s u r a n c e a g e n c ie s ; r e a l - e s ta t e b u s in e s s e s , e tc . B o th A p r. 1946 A d ju s te d * * P e rc e n t D is tr ib u tio n F e b . 1947 11.0 5 M a r. 1947 LUM BER P R O D U C T IO N * 1 + A p r. 1947 P la c e o f f a r m e r s ’ d e p o s its D o lla r C hange J u ly 1946F e b . 1947 A p r. 1946 10 G e n e r a lly it w a s th e a c c o u n ts o f b u s in e s s d e p o s ito r s r a th e r th a n M ar. 1947 353 409 390 343 348 333 455 330 314 362 352 400 318 469 D IST R IC T ................ A tla n ta ................ B a to n R o u g e . . . B irm in g h a m ___ C h a tta n o o g a ... J a c k s o n ................ J a c k s o n v ille ___ K n o x v ille ........... M a c o n .................. com m illio n U n a d ju s te d A p r. 1947 bank. A t s ix o u t o f e v e ry 1 0 o f th o s e b a n k s r e p o r tin g in th e d e p o s it su rv ey , I n d e x e s DEPARTM ENT S T O R E SALES* a n o th e r. E v e n J u ly to F e b r u a r y th e re s h ifts i s t r i c t am ount o f p e r s o n a l a n d b u s in e s s d e p o s its is th e s h if t o f d e p o s its f r o m bank D 6 5 M a r. 1947 A p r. 1946 238 234 237 236 209 205 U n a d ju s te d .. A d ju s te d * * . . . I n d e x * * ........... M a r. 1947 A p r. 1946 18.4 18.7 72.3 18.7 19.1 73.9 16.1 16.3 63.1 * D aily a v e r a g e b a s is **A d ju s te d , f o r s e a s o n a l v a r ia tio n ***1939 m o n th ly a v e r a g e = 1 0 0 ; o th e r in d e x e s , 1 9 35-39= 100 r R e v is e d n .a . N o t a v a ila b le M 6 6 S ix th D i s t r i c t 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 B a n k o f A tla n ta f o r M a y 1 9 4 7 S t a t i s t i c s n ec essary p o w e r f o r th e p u rc h a se of a la r g e v o lu m e o f c o n s u m e r d u r a b l e g o o d s . T h o u g h s u c h d e p o s it s , o f le s s t h a n $ 1 0 ,RETA IL JEW ELRY S T O R E O PE R A T IO N S N um ber of S to r e s R e p o r tin g Ite m T o ta l s a l e s ............................................... .. C a s h s a l e s ................................................... C r e d i t s a l e s ................................................. A c c o u n ts r e c e iv a b l e , e n d o f m o n th . C o lle c tio n s d u r i n g m o n t h .................... 0 0 0 e a c h , c o n s titu te d a b o u t 4 5 p e r c e n t o f a l l p e r s o n a l d e p o s P erc e n t C h a n g e A p ril 1947 fro m M a rc h 1947 — — — rf< — 19 19 19 19 19 its A p ril 1946 5 3 3 0 9 — 3 — 28 . + 22 ■+ 60 4- 9 a t th e of one D is tric t b a n k s , th e y p e rc e n t. p e rc e n t, and c re a se d 3 D e p o s its d e p o s its of b e tw e e n A p ril ih V o lu m e 41 24 10 19 54 34 F e d e r a l c r e d i t u n i o n s ................ S ta te c r e d i t u n i o n s ...................... I n d u s tr ia l b a n k i n g c o m p a n ie s I n d u s tr ia l lo a n c o m p a n ie s ___ S m a ll lo an , c o m p a n ie s ................ C o m m e r c ia l b a n k s ...................... O u ts ta n d i n g s P e rc e n t C h an g e A p ril 1947 fro m 4- 9 4- 50 4- 1 — 2 — 1 4- 4 A p ril 1946 +, 44* 4— 4- A p ril 1946 M arch 1947 63 65 8 30 5 68 444444- 44+ + 4-h 4 4 1 1 1 6 63 58 39 37 18 97 a lly N o . of F irm s R e p o r t in g a d ju ste d in M a rc h tw o A u to m o tiv e s u p p lie s . C lo th in g a n d s h o e s . D rugs* a n d s u n d r i e s . D r y g o o d s .................... F a r m s u p p l i e s . .1......... C o n f e c tio n e r y .............. G r o c e r i e s ...................... F u ll l i n e s .................. S p e c i a lt y l i n e s ----B e e r ................................. G e n e ra l h a r d w a r e ... I n d u s tr ia l s u p p l i e s . .. L u m b e r a n d b u ild in g m a te r i a ls .................... M a c h in e ry ,, e q u i p ., a n d s u p p l i e s ........... T o b a cco i p r o d u c t s . . . M is c e l la n e o u s ............. T o t a l.................... ............. P e rc e n t C h a n g e N o . of F irm s A p r. 30, 1947# fro m A p r. 30 R e p o r t M a r 31 1946 in g 1947 7 6 7 9 3 5 — 15 — 9 H- 1 — 4 ,+ 8 — 6 — — + — H1 + 17 17 16 21 76 21 5 rf- 9 1 + 3 4 4- 2 l+ 11 1+ 12 + 78 34 8 3 12 4 — 2 + 2 «+• 28 .+ 0 \+ 3 >+ 4— .+ .+ 14 20 48 34 36 17 4 3 6 4 + 3 6 18 129 3 80 «+ .+ + •4* d o lla r s w o rth in d e x — 5 — 0 r f 14 + 2 + 68 4- 66 .+ 24 4-1 0 2 a v e ra g e , c o m p a re d w ith 3 2 7 in w e e k ly s to re s th e firs t in d ic a te d A p r il u n le s s r e p o r ts f o r th e la tte r p a r t o f M a y sh o w d e c lin e s in m a rk e d s a le s . F u rn itu re -s to re p e rc e n t s a le s above f o r A p ril th e A p ril o f th is y e a r w e re 1946 le v e l. A t a lso je w e lry up, s to re s w e re B o th D is tric t th e 14 th e p e rc e n t g re a te r th a n in v e n to rie s and d e p a rtm e n t s to re s p e rio d o f in v e n to ry T h e re w as little th e y w e re o u ts ta n d in g a t th e end of m ay b u ild in g in o rd ers be M a rc h . re p o rte d A p r il in d ic a te c o in in g to by th a t an end. d if f e re n c e b e tw e e n th e M a r c h a n d A p r il sea* a d ju ste d in d e x e s of d e p a rtm e n t-s to re in d e x f o r A p r il, a t 3 2 0 , o n e p o in t b e lo w s a le s , w ith th e th a t f o r M a rc h . A l — — 6 2 rf- 81 4- 73 ris in g each m o n th u n til it re ac h e d 341, and m e rc h a n ts In began h a s d e c lin e d th e h ig h fa llin g of in 363 in D e Ja n u a ry , w hen ' e a c h m o n th s in c e th e n . 1 9 4 6 , w h e n s a le s w e re in c re a s in g s p e c ta c u la rly , th e A p ril w e re m a k in g 1947, e v e ry h o w e v e r, lo w e s t p o in t in e ffo rt to o u ts ta n d in g expand o rd e rs th e ir s to c k s . w e re at th e ir fiv e y e a r s , o n ly 3 6 p e r c e n t o f w h a t th e y w e r e re c e iv e d im m e d ia te ly a ll th e m e r c h a n d is e th e y h a d o n o r d e r a t th e e n d o f A p r il 1 9 4 6 , th e y IN V E N T O R IE S N o . of S to r e s R e p o rt in g 1947 1946. L a s t y e a r th e s e a s o n a lly a d ju s te d in d e x f o r J a n u a r y w a s 1 8 4 , D u rin g i9 61 m o n th to m o n th d u rin g h a v e n o t p a r a lle le d th e r a p id m o n th ly in c re a s e s d u r in g w o u ld h a v e r e c e iv e d th r e e tim e s a s to u c h a s th e y s o ld in th a t P e rcen t C h a n g e A p r. 30, 1947, fro m M a r. 31 A p r . 30 1947 1946 m o n th . I n c o n tra s t, d u r in g d e r s w a s le s s th a n A c o rre s p o n d in g A p r il 1 9 4 7 th e v a lu e o f th e s e o r th a t o f th e m e rc h a n d is e s o ld . d e c re a se in goods b e in g re c e iv e d , how e v e r, is n o t in d ic a te d , b e c a u se o f d ie p r o m p te r re c e ip t o f m e r — 3 — 5 3 — 2 4 4 5 + 11 — 7 4- 4 4- 5 5 4- 14 4* 9 ,4- 15 6 — 7 4 2 6 4 4'4— — 3 4- 13 •4- 12 2 — 4 5 44- 4 3 3 3 4 4 6 18 94 + 2 r— 3 4- 4 rf- 4 *3 3 3 *3 4- 47 c h a n d is e a n d th e c a n c e lla tio n o f p a s t-d u e o rd e rs . I n A p r il o f '+ ” 4 + *62 th is d e p a rtm e n t s to re s — 1 a lm o s t 9 0 — 6 4- 32 4- 32 — 14 + ’ i6 •fc 5 5 C O ALABAM A B ir m in g h a m ___ M o b ile .................. M o n tg o m e r y .. . F L O R ID A J a c k s o n v ille ----M ia m i.................. O r l a n d o ............. T a m p a .................. G E O R G IA A tla n ta ................ A u g u s t a .............. C o lu m b u s ......... M a c o n ........... LO U ISIA N A B a to n R o u g e . . . New l O r l e a n s . . M IS S IS S IP P I J a c k s o n ........... .... TEN N ESSEE B r is to l.................. C h a t t a n o o g a .. . K n o x v ille ........... N a s h v ille ......... O T H E R C IT IE S *. D IS T R IC T ............... re p o rtin g 353 p e rc e n t A p r il 1 9 4 6 . S a le s d u r in g a t th e it w e n t to SALES A p r. 1946 346 M ay in A p r il 1 9 4 6 . I f th e s to re s h a d M a r. 1947 w ith of c e m b e r. T h is y e a r th e in d e x D EPA RTM EN T S T O R E SA L ES A N D S T O C K S P la c e o f g o o d s s o ld d u rin g o f D is tric t d e p a rtm e n t-s to re s a le s to 1 9 3 5 -3 9 1 9 4 6 , o f 2 1 9 , th e c h a n g e s fro m 45 22 41 18 P ercen t C h an g e A p r. 1947 fro m in th o u g h th is fig u re w a s c o n s id e ra b ly m o re th a n th a t f o r A p r il *B a s e d o n U . S. D e p a r tm e n t of C o m m e rc e f ig u r e s N o . of S to r e s R e p o r t in g 5 $ 2 5 ,0 0 0 th a t th e fin a l in d e x f o r th e m o n th w ill b e m o re th a n th a t f o r s o n a lly v+ 26 1+ 8 rf- 22 — 2 — 0 and and w eeks th e y IN V E N T O R IE S P ercen t C h a n g e A p r. 1947 fro m A p r. M a r. 1947 1946 te n th s a le s w e re d o w n 3 p e rc e n t, a n d a t h o u s e h o ld -a p p lia n c e s to re s W H O L E S A L E S A L E S A N D IN V E N T O R IE S* I te m s $ 1 0 ,0 0 0 one in c re a s e d S ix th D is tr ic t d e p a rtm e n t s to re s b r o u g h t th e s e a s o n p e rc e n t o f th e 12 SALES m o re C. T . T . P e rc e n t C h an g e A p ril 1947 fro m M arch 1947 le s s th a n o r p e rc e n t. T h e e s tim a te d 4 4 m illio n L ender $ 2 5 ,0 0 0 Trade IN STA LLM EN T C A S H L O A N S N o . of L e n d ers R e p o r t in g in c re a s e d of th e p e rc e n t o f th e in g th e s a m e m o n th in r e c e iv e d m e rc h a n d is e w o rth v a lu e o f m e r c h a n d is e re c e iv e d d u r 1946. C. T . T. Agriculture 3 — — 4 9 4- 17 4- 26 8 "4 4" 0 4 -4 7 to o n th 6 6 H- 6 14- 5 4 4 rf— 3 1 4- 77 4-107 to 4- 4 — 0 4 4- 2 ,4- 58 L o u is ia n a , 4— — 4 #4* 3 — 2 3 3 4.4- 1 ta r d e d c r o p g ro w th . 6 H-129 !4-103 1 — 12 4- 2 4- 10 4- 3 5 22 v+“ 0 .+ *36 p e a ch c ro p 4— H- 46 4- 46 son. 2 — 0 .4— 4 0 5 73 1 1 * W h e n f e w e r th a n 3 s to r e s r e p o r t i i a g iv e n c ity , th e s a le s o r s to c k s a r e g r o u p e d t o g e t h e r u n d e r *‘o th e r c itie s /* ______________________________________ year A b o v e -n o rm a l w e re o v erco m e G e o rg ia T he th e and M ay te m p e r a tu r e s g e n e ra lly d e la y in g e a ste rn and c o n d itio n s P ro d u c tio n e ffe c ts in th e and h o w e v e r, in d ic a te a la tte r h a lf in S ix th th e a re c o rd la te , c o o l s p rin g . I n s o u th e rn la c k of A la b a m a , ra in fa ll re 2 5 .5 - m illio n -b u s h e l 1 0 S o u th e r n s ta te s th a t h a v e a n th e of f a rm e rs w h o w e re try in g o f th e T en n essee M is s is s ip p i, f o r th e d u rin g b e n e fic ia l to D is tr ic t s ta te s e a r l y sea* a c c o u n ts fo r a l m o s t 1 0 m illio n b u s h e ls o f th e to ta l. P ro s p e c tiv e G e o r g ia p ro ^ d u c tio n , e s tim a te d a t 6 .5 m i lli o n b u s h e ls , is 1 5 p e r c e n t g r e a t- M o n t h ly er th a n a m o n th o f th e F e d e r a l R e s e r v e B a n k o f A tla n ta f o r M a y 1 9 4 7 R e v ie w l a s t s e a s o n ’s c r o p . T r e e s la te r th a n b lo o m in g d a te s th e y in th e d id in th e s ta te la s t y e a r, a n d n o rth e rn a rea b lo o m e d th e and about S ix th D 6 7 i s t r i c t S t a t i s t i c s tim e b e tw e e n th e s o u th e rn area C O N D IT IO N O F 20 M EM BER BANKS IN SELECTED C IT IE S ( In T h o u s a n d s of D o lla rs) w a s m u c h s h o r te r th a n u s u a l. T h e firs t c o m m e rc ia l s h ip m e n ts o f th e G e o rg ia F lo rid a w ill p r o b a b ly g ro w e rs ’ firs t p ro s p e c ts tr e e s cro p in d ic a te b lo o m e d a re p o rts on fa v o ra b le about a be m ade about June th e 1 9 4 7 -4 8 season m o n th la te next th is c itru s y e a r. y e a r, 1. it Ite m cro p S in c e s till to o to an e a rly and m id se a s o n o ra n g e c ro p is at 71 p erc e n t o f a f u ll c ro p , V a le n c ia c ro p s a t 7 4 p e rc e n t, g r a p e f r u it a t 7 0 p e rc e n t, a n d ta n g e rin e s a t 7 2 p e rc e n t. T h e c o n d itio n on M ay 1 th is y e a r is a b o u t w h a t it w a s o n th e s a m e d a te la s t y e a r. D is tric t e a rly -p o ta to c o m p a re d in th e th e w ith th e H a s tin g s m id d le c ro p s s e c tio n o f th e and o n ly a re h a rv e s tin g F lo rid a q u a lity . f a ir in a s m a ll o f re c e n t y e a rs. T h o u g h of re a c h e d m o n th , y ie ld s a re lo w e r-th a n -a v e ra g e g ia g ro w e rs Y ie ld s its lig h t a n d a re poor c ro p h a rv e s tin g peak aro u n d th e c ro p in is o f S o u th G e o r A la b a m a . B e c a u s e o f b lig h t th e c ro p is a n e a r f a ilu r e in s o m e o f th e e a rly a re a s o f L o u is ia n a . M o v e m e n t o f th e c r o p in m o s t D is tr ic t p r o d u c in g a r e a s is la te r th a n u sual becau se of c o ld w et w e a th e r in th e e a rly p a rt o f th e season. P o ta to p r ic e s to D is tr ic t g r o w e r s w e r e s u p p o r te d b y g o v e r n m e n t p u rc h a se s $ 2 .6 0 to d u rin g $ 2 .7 0 a th e p ric e -s u p p o rt s c h e d u le d e c re a se in in m o n th bushel fo r su p p o rt fo r e a rly p ric e s at a m o u n ts ra n g in g U . S. N o. 1 g ra d e to m in im u m a fro m bushel peak reac h ed p ric e r e c e iv e d to e a rly fo r m eat fa rm e rs M arch . fo r A p ril, a n d in g by in in d e x P ric e s in r e c e iv e d th e by F ro m n a tio n g e n e ra lly 280 in w as little e s tim a te s , 276 w ere th e d a iry and to c h a n g e in fro m lo w e r th a n m id -M a rc h d ro p p e d D is tric t fa rm e rs th e re a n im a ls w e re A p ril p ro d u c ts in a lso M ay th e th e fa rm - m id -A p ril. s lig h tly lo w e r p ric e s , a c c o rd p ric e s . L o w e r p ric e s m o re th a n o ffse t th e h ig h e r p r ic e s f o r m o s t o th e r c o m m o d itie s . P ric e s p a id by fa rm ers w ere g e n e ra lly h ig h e r in A p ril th a n th e y w e re in M a rc h . T h o u g h fe e d a n d b u ild in g m a te ria ls w e re p rim a rily re s p o n s ib le fo r th e h ig h e r le v e l, th e p ric e s o f a lm o s t a ll c o m m o d itie s w e re h ig h e r . T h e lu m b e r - p r ic e d e c lin e , in c o s ts a re M a y , is o n e o f th e f ir s t d e c lin e s in s in c e th e a b o u t 11 y e a r. ra p id F e rtiliz e r-ta g fa rm e rs are ris e began. p e rc e n t h ig h e r th is u s in g s a le s 19 fo r fa rm -p ro d u c tio n F e rtiliz e r s p rin g A p ril p e rc e n t m o re p ric e s , th a n h o w e v e r, th e y in d ic a te w e re th a t fe rtiliz e r n o w la s t D is tric t th a n th e y d id in A p r il o f la s t y e a r. In th e g e o g ra p h ic a l are a s in c lu d in g s ta te s th e n u m b e r o f p e rs o n s e m p lo y e d s e a s o n a lly , th e num ber fa m ily h ire d vest th a n a th e year w o rk ers w as num ber ago. A la s t s lig h t o ffset b y an th e S ix th o n f a r m s w a s la rg e r, m o n th about equal to d e c lin e but in th e num ber of in c re a s e in th e num ber of la b o r e r s . A s a r e s u lt o f th e s h o r t- s p r in g in F lo rid a , m ig ra n t la b o re rs D is tric t began to v e g e ta b le h a r m ove a little e a rlie r th a n u s u a l. n o rth w a rd B. R. R. RETAIL FURN ITU RE S T O R E O PE R A T IO N S Ite m T o ta l s a l e s ................................................... C a s h s a l e s ................................................... In s ta llm e n t and, o th e r c r e d it s a le s . A c c o u n ts r e c e iv a b l e , e n d of m o n th C o lle c tio n s d u r i n g m o n t h .................... I n v e n to r ie s , e n d of m o n t h ................. N um ber of S to re s R e p o rtin g 95 87 87 94 94 74 P e rc e n t C h a n g e A p ril 1947 from M a rc h 1947 44-f 4__ — 4 8 3 3 4 4 A p ril 1946 -1— + + 4.4- 12 13 20 37 20 41 A p ril 23 1947 M a y 22 1946 — — 0 0 — 1 — 14 *+ 15 + 41 — 25 — 55 + 0 + 1 — 16 + 2 — 0 — 2 — 4-j+ — — 42 64 10 22 22 50 44+ — — + i+ + 2 1 0 7 1 1 0 3 — 3 + 3 -j- 4 — 90 — 15 — 33 + 1 4- 1 + o - 17 — 1 — 50 D EBITS T O IN D IV ID U A L BANK A C C O U N T S ( I n T h o u s a n d s of D o lla rs) P la c e A u g u st. P ric e s P ercen t C h a n g e M ay 21, 1947, fro m 1,905,810 1,909,497 2,214,435 574,732 496,305 L o a n s — t o t a l . . . ’.................... 572,718 C o m m e rc ia l, in d u s tr ia l, 333,937 235,135 331,061 a n d a g r i c u lt u r a l lo a n s . L o a n s to b r o k e r s a n d 5,115 6,822 d e a le r s in s e c u r i t i e s . . . 11,353 O th e r lo a n s fo r p u r c h a s in g a n d c a rr y in g s e c u r i t i e s ............................. 72,272 72,034 124,518 46,422 R e a l e s ta te l o a n s ............... 28,232 45,758 3,514 L o a n s to b a n k s .................... 3,183 4,168 114,334 93,884 O th e r l o a n s ...................... 112,013 I n v e s tm e n ts — t o t a l ............. 1,333,092 1,334,765 1,718,130 738,647 U. S. d ir e c t o b lig a tio n s . . 372,929 380,059 O b lig a tio n s g u a r a n t e e d 821,101 800,880 796,645 b y U . S . . . .......................... 158,382 O th e r s e c u r i t i e s .................. 159,283 158,061 363,185 R e s e r v e w ith F. R. B a n k . . 363,470 361,759 31,209 29,178 32,107 C a s h in v a u l t ............................ B a la n c e s w ith d o m e s tic 147,029 140,955 b a n k s ........................................ 142,654 D e m a n d d e p o s its a d j u s t e d . 1,403,291 1,396,117 1,363,043 T im e d e p o s i t s .......................... 462,190 460,580 442,629 336,483 34,006 40,775 U. S. G o v 't d e p o s i t s ............. 490,361 417,929 D e p o s its of d o m e s tic b a n k s 414,799 1,500 1,000 2,000 B o r r o w in g ................................... p o ta to e s . T h e o f $ 2 .0 0 M a y 22 1946 L o a n s a n d in v e s tm e n ts — p o ta to e s c a lls f o r a g r a d u a l a Apr i l 23 1947 th e e a r ly to a s c e r ta in th e s e t o f f r u it . C o n d itio n r e p o r ts , h o w e v e r, p o in t M a y 21 1947 ALABAM A A n n is to n ............. B irm in g h a m . . . . D o th a n ............... G a d s d e n ............. N o . of B anks R e p o r t in g A p ril 1947 M a rc h 1947 A p ril 1946 P ercen t C h an g e A p ril 1947 fro m M ar. 1947 A p r. 1946 M o n tg o m e r y ... 3 6 2 3 4 3 19,383 274,089 9,201 15,746 111,130 63,144 21,350 298,214 10,824 18,271 120,186 67,362 22,356 225,572 8,165 12,616 93,908 52,367 — 9 — 8 -— 15 — 14 — 8 — 6 — + 44* + + F LO R ID A J a c k s o n v ille M ia m i.................. G r e a te r M iam i* O r l a n d o ............. P e n s a c o l a ........... St., P e te r s b u r g . T a m p a .................. 3 8 13 2 3 3 3 233,998 212,923 306,039 42,893 30,609 52,628 102,357 247,365 239,007 343,252 49,807 30,215 55,846 108,904 202,061 197,419 289,919 45,437 27,755 46,072 97,631 — 5 — 11 — 11 — 14 4- 1 — 6 — 6 + 16 + 8 + 6 — 6 + 10 + 14 + 5 N e w n a n ............. R o m e * .................. S a v a n n a h ........... V a ld o s ta ........... .. 2 4 3 2 4 2 3 2 3 2 3 4 2 13,564 696,947 53,542 8,379 54,244 3,415 11,267 10,072 51,503 6,362 18,422 76,503 11,401 14,674 719,437 51,964 8,873 57,736 3,634 12,040 10,108 57,418 7,029 19,942 78,946 11,460 12,092 586,495 45,776 9,640 42,013 2,883 9,732 8,341 42,502 7,094 16..520 78,658 9,414 — 8 — 3 4- 3 — 6 — 6 — 6 — 6 0 — 10 — 9 — 8 — 3 — 1 + + + — 44+ + 4— + — + 12 19 17 13 29 18 16 21 21 10 12 3 21 LO U ISIA N A B a to n R o u g e . . . L ake C h a r le s .. N ew O r le a n s .. 3 3 7 67,507 24,420 566,402 74,394 25,378 608,269 55,785 20,032 492,438 — _ — + + + 21 22 15 M IS S IS S IP P I H a tt ie s b u r g . . . . J a c k s o n ............... M e r id ia n ............. V ic k s b u r g ......... 2 4 3 2 15,038 97,471 24,771 20,571 16,776 123,617 26,978 * 22,577 13,924 81,935 22,184 21,741 TEN N ESSEE C h a t ta n o o g a . . . K n o x v ille ........... N a s h v ill e ........... 4 4 6 118,689 100,150 261,432 131,099 105,476 262,845 S IX TH D IST R IC T 32 C i t i e s ............. 109 3,440,412 87,766,000 G E O R G IA A lb a n y ........... A tla n ta ............... A u g u s t a ............. B r u n s w ic k ......... C o lu m b u s ......... E l b e r to n ............. G a in e s v i lle * ... G riffin * ............... U NITED STATES 334 C i t i e s ........... * N ot in c lu d e d in S ix th D is tric t to ta l 9 4 7 13 22 13 25 18 21 — 10 — 21 — 8 — 9 4- 8 4- 19 + 12 — 5 100,589 96,423 227,174 — — — 9 5 1 + + + 3,675,931 3,000,151 — 6 H- 15 93,319,000 87,532,000 — 6 H- 18 4 15 0 6 8 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 B a n k o f A tla n ta f o r M a y 1 9 4 7 N ational Sum m ary o f Business Conditions I n d u s tria l A p ril. o u tp u t T he and v a lu e e m p lo y m e n t of d e c lin e d d e p a rtm e n t-sto re s lig h tly s a le s in c o n tin u e d to M a rc h to A p r il a n d w a s a b o u t o n e -fifth s m a lle r th a n in A p r il 1 9 4 6 . P riv a te re s id e n tia l a n d s h o w th e u s u a l s e a s o n a l c h a n g e s in A p r il b u t in c re a s e d s o m e a lth o u g h w hat A w a rd s f o r p u b lic ly in p ric e s M ay. T he d e c lin e d g e n e ra l le v e l A p ril s o m e w h a t in of w h o le s a le and show ed c o m m o d ity little change a w a rd s re fle c tin g c h ie fly f o r s tre e ts a n d in th e f ir s t th r e e w e e k s o f M a y . u s u a lly a d e c lin e d s lig h tly in la rg e 187 p e rc e n t 190 of in th e m a n u fa c tu re s a n d A s lig h t trie s in 1 9 3 5 -3 9 A p r il a c c o rd in g to in ch an g es. in in A p ril fu rth e r as A p ril in at in d u s s m a ll d e c lin e s in and s c h e d u le d o p e ra tio n s A p ril, in A p ril. fu rth e r, th e v o lu m e o f c o n tr a c ts o u t p ro d u c ts d e c lin e d fa b ric a tin g s m e lte rs in d u s trie s and re fin e rie s . a t s te e l m ills d u rin g a fte r s a le s c o n tin u e d a llo w a n c e B o a r d ’s a d j u s t e d fo r to usual in d e x w a s 2 7 5 show little seasonal change ch an g es. p e rc e n t o f th e 1 9 3 5 -3 9 in T he a v e r a g e in A p r il, c o m p a r e d w ith 2 7 7 in M a rc h a n d a n a v e ra g e o f in th e firs t f o u r m o n th s o f th is y e a r. I n u m e o f s a le s s h o w e d in th e le s s th a n f irs t h a l f o f th e th e c o r r e s p o n d in g m o n th p e rio d sh arp of d ro p coal in coal in c re a s e d fre ig h t w e re w as 12 p e rc e n t la r g e r th a n in of 1946. s h ip m e n ts and M a y d o lla r v o l th e u s u a l s e a s o n a l d e c lin e a n d F re ig h t c a rlo a d in g s d e c lin e d fo r u su al seaso n al S te e l p ro d u c tio n w a s a t 9 4 p e rc e n t o f c a p a c ity in A p r il, a s in M a rc h , in c re a s e in expanded h ig h w a y s . D e p a rtm e n t-s to re 271 ra te . s to p p a g e s a t p la n ts p r o som e a c tiv ity co m p a re d n o n d u ra b le th e M a rc h m e ta ls a n d in as and d u ra b le -g o o d s a f te r a llo w a n c e d e c re a se s g a in s th e e q u ip m e n t a n d m a te ria ls O u tp u t o f n o n fe rro u s s lig h tly o ffse t a c tiv ity m a in ly w o rk c o m m u n ic a tio n p u t o f b u ild in g fo r d u ra b le o f m in e ra ls w a s b e lo w d e c re a se A p r il re fle c te d d u c in g a v e ra g e M a rc h . O u tp u t o f b o th s e a s o n a l in c re a s e c o n s tru c tio n Distribution t h e B o a r d ’s s e a s o n a l l y a d j u s t e d i n d e x , w h i c h w a s a t a l e v e l o f w ith a f in a n c e d Industrial Production I n d u s tr ia l p ro d u c tio n n o n re s id e n tia l a w a rd s d e c lin e d , show in A p ril la rg e ly e a rly s h ip m e n ts m a in ta in e d in in of la rg e th e m ost v o lu m e becau se o f a m o n th . L o a d in g s o th e r in c la s se s th e e a rly of p art o f M ay. Commodity Prices M ay h a v e b e e n m a in ta in e d a t th is ra te . A u to m o b ile o u tp u t in A p r il P ric e s o f m o s t b a s ic c o m m o d itie s s h o w e d little c h a n g e in th e c o n tin u e d e a rly p a r t o f M a y , fo llo w in g d e c lin e s in A p r il. P r ic e s o f fe e d tru c k s ; trie s tio n at and an annual a c tiv ity in c re a s e d in ra te s o m e w h a t. is in d ic a te d of about fiv e m illio n c a rs and o th e r tra n s p o rta tio n -e q u ip m e n t in d u s A d e c lin e f o r M a y , la rg e ly in a u to m o b ile p ro d u c a s a r e s u lt o f s h o rta g e s o f P ro d u c tio n of s m a lle r v o lu m e n o n d u ra b le in A p ril p u t o f te x tile s . A c tiv ity m a n u fa c tu re s o w in g m a in ly in th e w as to a in som ew hat d e c re a s e in ru b b e r p ro d u c ts o u t^ in d u s try passenger c a rs , tru c k s , and b u sses w e re b e in g p ro duced at an a n n u a l r a te o f 1 0 0 m illio n , c o m p a re d w ith a b o u t 60 in m illio n g o o d s in 1940. P ro d u c tio n A p ril sh o w e d O u tp u t o f c o a l re fle c tin g e a rly w o rk of m ost little c h a n g e fro m d e c lin e d s to p p a g e s 20 at b itu m in o u s n o n d u ra b le M a rc h coal ra te . to f u r th e r in p a r t o f M a y to a n e w N o n a g ric u ltu ra l re c o rd e m p lo y m e n t d e c re a se d f o r s e a s o n a l v a ria tio n se rv e . T h is w a s d u e c h ie fly d e c lin e b itu m in o u s -c o a l, E m p lo y m e n t in and in d u s trie s to in c re a s e d by D odge C o rp o ra tio n , th e at B u re a u 147 of p e rc e n t L a b o r S ta of th e b ill is s u e s p ro g ra m b ills c o n tin u e d began, and w ere re tire d . by in to M a y . B e tw e e n M ay 22 L a rg e ly o n e b illio n as d e p o s its a at re s u lt A p ril of th e s e c o m m e rc ia l d o lla rs in 17, w hen ra te . s id e ra b ly b y th e F e d e ra l R e w o rk s to p p a g e s in e le c tric a l-m a c h in e ry m a n u fa c tu rin g th e in d u s s lig h tly in in c re a s e in g th e th e re tire m e n ts banks w ere show ed F e d e ra l th e ir le s s in R e se rv e h o ld in g s th a n th e m o n e ta ry fiv e w e e k s serv e banks h e ld o f T re asu ry m ost o f b ills a m o u n t re tire d , as th e d e c lin e d som e re tire d by change th e n e e d C o m m e rc ia l ra p id ly fro m so m ew h at fro m g o ld and s to c k of 300 s m a ll in flo w m illio n con c o m m e rc ia l fu rth e r d o lla rs o f c u rren c y fro m d u r c irc u f o r a d d itio n a l s a le s o f s e c u ritie s to th e R e S y s te m . and in c re a s e . in d u s tria l th e m id d le d u rin g le a d in g to little re fiv e w e e k s e n d i n g la tio n s u p p lie d m e m b e r b a n k s w ith r e s e r v e f u n d s a n d th e re b y re d u c e d n o n d u ra b le A p ril. th e d o lla rs o f T re a s u ry 21. A lth o u g h s e c u ritie s , 4 5 0 ,0 0 0 1926 Treasury Finance and Bank Credit o u tp u t ro se about w ool T r e a s u r y re d e m p tio n f o r c a sh o f p a r t o f th e w e e k ly m a tu rin g M ay Construction W . ru b b e r, le v e l o f 1 4 9 p e r c e n t in M a r c h . and T o ta l v a lu e o f c o n s tru c tio n c o n tra c ts a w a rd e d , a s r e p o rte d b y F. to been a b o u t 8 0 0 m illio n th e of a v e r a g e s in c e th e m id d le o f A p r il, c o m p a r e d w ith a n a v e r a g e in th e has duced g o o d s , c h ie fly te x tile s a n d a p p a r e l, a ls o d e c lin e d . T h e n u m b e r u n e m p lo y e d a c c o rd in g in d e x , p ric e s b a n k s s o ld b ills to m a in ta in th e ir re s e rv e p o s itio n s . A f ig u re s a s a d ju s te d p e rso n s p ric e s , A p ril, w o rk e rs in A p r il, a c c o rd in g to th e B u re a u o f L a b o r S ta tis tic s ’ of w h o le s a le w a r-lo a n Employment te le p h o n e , of w h ile lu m b e r d e c lin e d . T h e g e n e r a l le v e l in to m in e s a d v a n c e . C ru d e -p e tro le u m advanced, T re a su ry o f c ru d e p e tro le u m o f m e ta ls c o n tin u e d th e e a rly o th e r th e M a rc h p erce n t fro m p a r t o f th e m o n th . P ro d u c tio n trie s . copper w as s lig h tly b e lo w th e e x c e p tio n a lly h ig h f ir s t- q u a r te r le v e ls w h e n fo r and to p s , p a in t m a te r ia ls , a n d tis tic s ’ w e e k ly s te e l s h e e ts . tire s g ra in s c itie s . A p ril lo a n s , and R e a l-e s ta te th e and G o v e rn m e n t-s e c u rity th e m id d le o f A p r il a n d w h ic h had o f 1 9 4 6 u n til M a rc h firs t h a lf of consum er h o ld in g s expanded 1 9 4 7 , d e c lin e d M ay lo a n s d e c lin e d at banks c o n tin u e d b e tw e e n th e m id d le o f M a y . T h e B oard o f G o vern o rs
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