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Monthly Review ATLANTA, G E O R G IA , MAY 3 1 , 1 9 5 4 JnJftishsue: P r ic e o f G o v e r n m e n t lO U 's B a la n c e S h e e t o f A g r ic u lt u r e O w n e r s h ip o f^ D e m a n d D e p o s it s SixthDiAridStatistics: Co n d itio n o f 27 M em b er Banks in Leading C itie s Debits to Individual Dem and D eposit A cco u n ts D epartm ent S to re Sales and Inventories Instalm ent C a sh Loans R eta il Furniture S to re O p erations W holesa le Sales and Inventories Sixth Di^tridIndexes: C o n struction C o n tra cts C o tto n Consum ption D epartm ent S to re Sales and Stocks E le c tric Power Production Furniture S to re Sales and Stocks M anufacturing Em ploym ent M anufacturing Payrolls Petroleum Production Turnover o f Dem and D eposits S f c f e r a l 'f f y s e m B a n k g 0 t f a n t a D I S T R I C T B U S I N E S S H I G H L I G H T S C on sid erab le rep la n tin g o f cotton has been necessary because unseasonably cold weather damaged first stands. Exports o f cotton are running larger than last year’s and are expected to be well above those of the last marketing season. • Farm incom e during the remainder of 1954 is likely to continue slightly under 1953 levels because of reduced crop marketings and lower prices. • Factory e m p lo y m e n t, seasonally adjusted, declined during March at the same rate as in the nation; it was lower than a year ago in all Dis trict states except Florida. • Factory p a y ro lls in March, seasonally adjusted, were almost un changed from February. • U n em p lo y m en t co m p en sa tio n claim s declined slightly during March, for the first time since September; preliminary figures show a further decrease in April. • S tee l production in the Birmingham area during the week ending May 20 jumped sharply from April, with the reopening of a major mill previously closed down for repairs. # C onstruction contract a w a r d s were lower during April than in March, but above those of a year earlier. • C otton t e x t ile a c tiv ity , as measured by seasonally adjusted cotton consumption, rose slightly in April, but was still substantially below the 1953 level. D ep artm en t sto r e s a le s picked up more than seasonally in April and May. Furniture sto r e b u sin ess also rallied in April. N e w car reg istr a tio n s during March showed less increase than during last March and were below a year earlier for the first time this year. • Bank d e b its, seasonally adjusted, increased somewhat in April. • Total d e p o s its at member banks increased slightly during April and, according to preliminary information, continued to increase during May. • The red iscou n t r a te was reduced from 13A percent to IV 2 percent on May 15 by the Federal Reserve Bank of Atlanta. The r e s e r v e p osition o f m e m b er b a n k s remained easy in May, as excess reserves averaged considerably higher than indebtedness to the Federal Reserve Bank. • B usiness lo a n s at banks in leading cities declined in May, but were substantially above the year-earlier level. • 2 • B eans a n d B o n d s ... OR The P R I C E of G O V Until recently, Government bond prices have been rising, in contrast to most commodity prices, which have jogged along or fallen slightly since the recession began. Despite the recent reversal in bond quotations, the price level of the IO U ’s of the Federal Government is substantially higher than it was a year ago. The high price of Governments, of course, means lower cost of borrowing to the Treasury. In addition, it is indic ative of eased credit conditions that mean lower cost and greater availability of credit to private borrowers. On the other hand, banks and other lenders obtaining most of their revenue from interest charges are hard pressed to maintain their 1953 earnings level. Legumes and Liabilities Although both lenders and borrowers are usually aware of the changes taking place in credit conditions and in the securities markets, less well understood is the background behind these changes. To facilitate such an understanding, it might be well to consider here a some what more familiar commodity— beans, for example. The price of beans, like the price of Governments, is deter mined by supply and demand conditions. Unlike the price of beans, which are perishable, however, today’s price of Governments is affected by estimates of the future price— not only tomorrow’s but a year from tomorrow’s. For this reason the background of today’s price has more than passing relevance in indicating the factors that are possibly C H A N G ES FREE IN SAN K RESERV ES . EXCESS RESERV ES Min u s b o r r o w in g s ifcNLUOHS OF DOLLARS} - E R N M E N T I O U ’s important in determining tomorrow’s and next year’s price. In turn these background factors affecting Government prices are important in determining the future terms of private borrowing, so closely are the various markets for loanable funds tied together. The supply of marketable Government securities has re mained fairly constant since last fall at about 154.5 billion dollars, although a slight drop did occur in March when tax receipts were used to pay off some Federal obligations. More important than the constancy of the supply of Governments has been the changes in types of securities available to would-be purchasers. Just as there are many kinds of beans, there are numerous types of Governments, the various issues differing principally in the maturity or date of repayment. Since last summer there have been sharp changes in the amount of securities available in the various maturity ranges. Principal among these changes has been the sharp reduction in short-term securities— those maturing under one year. Demand for Early Varieties H eavy This reduction has been particularly important because of the large demand for these securities. Nonfinancial busi nesses investing funds being held for tax payments find them attractive, and some corporations have put funds obtained from reducing inventories into short-term securi ties. Finally, many state and local governments have put money raised for major construction projects into short term Governments until they are ready to go ahead with the project. The heavy corporate and local government demand for short-terms beating upon the reduced supply of this particular variety of Government IO U ’s has helped to increase the price, making the return received a smaller proportion of the original cost. Short-term interest rates on Treasury bills, in other words, have fallen to a level lower than that at any time since 1947. But what has this done to prices and interest rates on long-term Governments? To answer this question, let us return to our example of beans. When the price of pole beans gets too high, some people will shift to butter beans or snap beans. As a result, the price of butter beans or snap beans will start up too. The same thing happens in the case of Governments. When the prices are thought to be too high and the rates of return too low on short-term securi ties, some investors switch to long-term securities. Banks, for instance, have sold short-term Governments in order to invest in long-term Governments. Some investors even shift into different markets such as municipal securities or mortgages. The increased competition causes an in crease in price and a decrease in interest earned on these types of debt obligations. Thus the high price of beans even causes the price of black-eyed peas to rise— and that’s another vegetable! Just as the actions of the largest buyer or potential buyer can affect the bean market, so Federal Reserve policy is indirectly important in the securities market. During the last part of 1952 and early 1953 the Reserve System supplied bank reserves only niggardly, causing banks to restrict their lending and investing activity. This was done, of course, to head off the apparent inflationary bubble at that time and it resulted in falling Government bond prices. As the economy began to turn around, however, Reserve Bank policy also turned around in order to dis courage deflationary developments. This action shortly manifested itself in sharply rising prices of Government bonds. Neither Too Fast Nor Too Slow The shift in Federal Reserve policy last year is perhaps best illustrated by changes in wording of the directives of the Federal Open Market Committee, a record of which is published as a part of the annual report of the Board of Governors. In early March the committee was directing that the open market account continue to be operated “with a view to exercising restraint upon infla tionary developments.” At the June meeting the directive was changed to “avoiding deflationary tendencies without encouraging a renewal of inflationary developments.” In September the directive was again changed to prescribe operations “avoiding deflationary tendencies.” Finally, at the December meeting the Committee prescribed that operations be carried on with the view “to promoting growth and stability in the economy by actively maintain ing a condition of ease in the money market.” Here the official record ends, yet the reduction in the rate at which Reserve Banks lend to their member banks to 1% percent in January and another reduction at some Reserve Banks in April to IV 2 percent seem to indicate B a n k A n n o u n c e m e n ts On M ay 20, the Jackson-H inds Bank, Jackson, M ississippi, a nonmember bank, located in territory served by the New Orleans Branch, together with its branches in Leavell Woods and T erry, M ississippi, began to remit at par for checks drawn on it when received from the Federal R eserve Bank. Officers of this bank include M arvin Collum, President; M a x T , A llen , J r ., Vice President and Cashier; George A Morgan and George W. Morgan, Vice Presidents; and Chester Thornton and M rs. Clyda Harper, A s sistant Cashiers. Its capital amounts to $400,000 and surplus and undivided profits to $114,377. The Bank of D ickson, D ickson, Tennessee, did not open A p ril 1 as was announced in the A p ril issue of this Review . The exact opening date was M ay 28. A nonmember state bank, it will remit at par. Officers are Hugh Wynns, President; Wayne Sensing, E x e c u tive Vice President; and Glenn Hamilton, Cashier. I t has a capital of $100,000 and surplus of $100,000. that the policy of “active ease” has not been changed. So far, however, the Reserve Banks have not flooded member banks with reserves but instead have released reserves in some weeks and sopped them up in other weeks as the private credit needs of the economy required. Free re serves— that is, excess reserves minus borrowings— have been maintained in this manner at an average level of about 500 million dollars during most of 1954, as is shown by the weekly Federal Reserve statements. Present mone tary policy, therefore, although directed toward freer credit conditions as is consistent with a period of declining busi ness conditions, can hardly be characterized as a “crash” program designed to stimulate the economy at all costs. The fact that large pools of excess reserves do not exist at present is evidence that monetary policy has been effective in stimulating banks to expand loans and in vestments at rates of return attractive both to themselves and to their borrowers. The high price of Governments, particularly short-term Governments, is therefore only partially the result of deliberate Federal Reserve policy. The “Natural” Price The record of policy actions taken by the Federal Open Market Committee in 1953, contained in the Annual R e port of the Board of Governors, indicates that during most of last year open market purchases and sales were con ducted only in short-term Government securities and were “entered into solely for the purpose of providing or ab sorbing reserves.” In the discussion of this policy it was made clear that this course was adopted because it was felt the monetary authority should not attempt to deter mine “what the market should be” and that direct pur chases and sales in the short-term sector would affect least the dollar price of securities. Thus, “the market would still reflect natural forces of supply and demand and thus furnish a signal of the effectiveness of credit policy aimed primarily at the volume and availability of bank reserves.” The price of butter beans was not being determined di rectly by the biggest potential buyer, for he was buying only pole beans. Butter bean prices still reflected the “natural” forces of the market as well as the manner in which the demand for them “spilled over” from highpriced pole beans. Although long-term operations are not precluded in the event of disorderly market conditions or when otherwise required, the weekly statements of Reserve Bank holdings of the various classes of securities show no operations in the long-term sector this year. As long as monetary policy continues to be a foremost weapon in fighting cyclical swings in economic activity and as long as changes occur in both the supply and type of Government debt instruments, some changes in the price of Governments may well be expected. Because changes in the price of Governments are both a reflection of general credit conditions and an important causal factor in deter mining movements in the cost and availability of private credit, alert investors and businessmen who make use of credit as well as lenders who supply credit, might well say with Thoreau “I was determined to know beans.” T h o m a s R. A t k in s o n •4 • B a la n ce Sheet o f A g ric u ltu re A la. ASSETS P h y s ic a l A s s e t s R e a l E s t a t e ..................................................................................... N o n - R e a l E s t a te L i v e s t o c k .................................................................................... M o t o r V e h ic le s , M a c h in e r y a n d E q u ip m e n t . C r o p s , S t o r e d o ff a n d o n F a r m s ............................ H o u s e h o ld F u r n is h in g s aftid E q u ip m e n t . . . F in a n c ia l A s s e t s D e p o s it s a n d C u r r e n c y ........................................................ U . S . S a v in g s B o n d s ( E ) ........................................................ I n v e s tm e n ts in C o o p e r a t i v e s ................................................. T o t a l A s s e t s ...................................................................... , C L A IM S L ia b il it ie s R e a l E s ta te D e b t ...................................................................... N o n - R e a l E s t a te D e b t T o P r in c ip a l I n s t itu t io n s E x c lu d in g C C C ............................................................... H e ld o r G u a r a n t e e d b y C C C . . . . . T o O t h e r s .................................................................................... T o t a l L i a b i l i t i e s ........................................................ P r o p r ie t o r s ’ E q u i t i e s ............................................................... , T o t a l L ia b il it ie s a n d N e t W o r t h ................................... . Fla . Ga. S IX ™ La . M iss. Tenn. D istrict States Outside D istrict States United States (M illions of D ollars) 1 ,3 1 2 1 ,3 3 2 1 ,3 7 5 1 ,1 0 5 1 ,5 0 7 1 ,7 2 7 8 ,3 5 8 8 3 ,9 4 2 9 2 ,3 0 0 197 427 72 145 173 172 8 84 183 492 94 168 196 356 56 105 201 522 204 75 238 551 148 153 1 ,1 8 8 2 ,5 2 0 582 730 1 3 ,7 1 2 1 4 ,6 8 0 8 ,5 1 8 9 ,2 7 0 1 4 ,9 0 0 1 7 ,2 0 0 9 ,1 0 0 1 0 ,0 0 0 104 38 16 2 ,3 1 1 94 18 24 1 ,9 0 5 120 38 29 2 ,4 9 9 103 38 26 1 ,9 8 5 1 65 48 30 2 ,7 5 2 140 40 35 3 ,0 3 2 726 220 160 1 4 ,4 8 4 1 3 ,4 7 4 4 ,7 8 0 2 ,5 4 0 1 5 0 ,9 1 6 1 4 ,2 0 0 5 ,0 0 0 2 ,7 0 0 1 6 5 ,4 0 0 102 114 133 71 136 113 669 6 ,4 3 1 7 ,1 0 0 52 16 22 192 2 ,1 1 9 2 ,3 1 1 46 * 62 40 36 271 2 ,2 2 8 2 ,4 9 9 43 14 12 140 1 ,8 4 5 1 ,9 8 5 82 30 44 292 2 ,4 6 0 2 ,7 5 2 65 26 63 267 2 ,7 6 5 3 ,0 3 2 350 1 26 247 1 ,3 9 2 1 3 ,0 9 2 1 4 ,4 8 4 3 ,8 5 0 1 ,0 7 4 3 ,1 5 3 1 4 ,5 0 8 1 3 6 ,4 0 8 1 5 0 ,9 1 6 4 ,2 0 0 1 ,2 0 0 3 ,4 0 0 1 5 ,9 0 0 1 4 9 ,5 0 0 1 6 5 ,4 0 0 70 230 1 ,6 7 5 1 ,9 0 5 * $ 4 0 1 ,0 0 0 For the past couple of years threats of lower prices and reduced incomes have been snapping at District farmers’ heels like a pack of yelping dogs. Although declines have not been as large as was feared, they have been large enough to halt the improvement in farmers’ financial posi tion that had begun in the early forties. District state farmers’ equities in their farms rose consistently from year to year, from about 3.3 billion dollars in 1940 to slightly more than 13 billion dollars in 1952. By 1953, however, the upward trend had ended. At the start of that year Dis trict farmers’ net worth in their composite farm businesses was some 47 million dollars less than a year earlier. The pronounced improvement in farmers’ financial standing in recent years is revealed in a Balance Sheet of Agriculture for Sixth District states prepared by this Bank. According to the Balance Sheet, farmers generally, through 1947 at least, found it fairly easy to borrow money; had little difficulty paying back the loans; and did, in fact, reduce their total debt. After 1947, however, they went more heavily into debt. But the over-all growth in debt between 1940 and 1953 did not severely retard the improvement in the financial standing of District farmers. During this period, inflation pushed asset valuations to record peaks and gave a marked lift to incomes. A little more than half of the gain in farm ers’ equities came from greatly expanded land values. Many farmers had to acquire additional assets, such as livestock, machinery, and certain other farm and home equipment, so that they could produce enough to meet the increased needs of the nation’s growing population and those of our wartime allies. Some of the new strength in Southern agriculture came from farmers’ increased hold ings of financial assets, which gave them greater flexibility in arranging their investment programs. A ll these additions to assets other than land and buildings accounted for nearly half of the gain in farmers’ equity. Farmers in the District have less liquidity than farmers in the balance of the nation. For each dollar of short-term farm debt in 1953, District farmers had $1.30 of deposits, currency, and Government bonds, which represent their “quick assets.” For the balance of the nation there was $2.25 of “quick assets” for each dollar of short-term debt. District farmers’ holdings of some 14.5 billion dollars worth of assets were, however, a source of satisfaction. Their assets were compromised by a debt of only 1.4 bil lion dollars, roughly a tenth of the value of all assets. Judging from District farmers’ equities in their farm businesses, a further large decline in value of assets or a rise in debts could occur without being fatal. Of course, on the basis of a lowered financial standing, the volume of capital attracted to the region’s agriculture would likely di minish. At present the anxieties of District farm people center about the need for preventing a shrinkage in asset values and in their equities and a curtailment in their ability to get funds from the capital markets. Unfortunately some of these anxieties are well founded for there has been a further deterioration in farmers’ financial standings since early 1953. Land values, for example, have declined and livestock inventories are worth less. Very likely there has been a cut in their holdings of savings bonds. At the end of 1953, long-term debt at member banks was still rising. It seems quite probable that these trends are persisting in 1954. Consequently, District farmers’ equities in their composite farm businesses could, by year-end, be as much as half a billion dollars below the 1953 level. A rthur H . K antner • 5• O w n ersh ip o f D e m a n d D eposits Demand deposits of individuals, partnerships, and cor porations in all commercial banks of this District were estimated at 5,628 million dollars as of January 30, 1954. This figure is about 220 million above the January 1953 level and about 3 billion above the level of 1943, when the first survey of demand deposit ownership was made. The large increase in these deposits during 1953 and since 1943 did not appreciably change the ownership distribution, as individuals and trade and manufacturing and mining firms continued to hold relatively large shares. In January 1954, individuals, including farmers, held about 84 percent of the four million accounts and about 46 percent of the total dollar volume. At present the mean average personal checking account in this District is about 760 dollars. This may seem high to most individuals, but it does reflect the large balances held by a relatively few persons. There are about 300 personal deposits of over 100,000 dollars, and some 5,600 accounts between 25,000 and 100,000 dollars. There are about 3.3 million accounts of less than 10,000 dollars, totaling 1,914 million dollars. Although business firms hold only 11 percent of the accounts, their deposits amount to 49 percent of the dollar volume. Together these firms have about 2,768 million dollars in their demand deposit accounts, with trade firms holding 964 million and manufacturing and mining com panies holding 656 million. Financial businesses, such as DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS A ll C o m m e r c ia l B a n k s , S ix t h F e d e r a l R e s e r v e D istr ict Janu ary 3 0 , 1 9 5 4 Type o f Owner N um ber of Accounts ( Thousands) M illion s o f Dollars D olla r Volume Percent Percent Change Distribution f r o m ------------------Jan. 1953 1953 1954 M a n u f a c t u r in g a n d M in in g a . C o r p o r a te b. N o n c o r p o r a te 36 18 18 656 572 84 + 4 .6 + 3 .4 + 1 3 .9 1 1 .6 1 0 .2 1 .4 1 1 .7 10.1 1 .6 P u b lic U t ili t ie s a . C o r p o r a te b. N o n c o r p o r a te 15 8 7 265 233 32 — 1 .6 — 3 .5 + 1 5.1 5 .0 4 .5 .5 4 .7 4 .1 .6 T rad e a . C o r p o r a te b. N o n c o r p o r a te 234 49 185 964 505 459 + 3 .6 — 2 .8 + 1 1 .7 1 7 .2 9 .6 7 .6 1 7 .1 9 .0 8.1 C o n s tr u c tio n a n d S e r v ic e s a . C o r p o r a te b. N o n c o r p o r a te 106 21 85 401 181 220 + + + 4 .1 1 .6 6 .3 7 .1 3 .3 3 .8 7 .2 3 .3 3 .9 F in a n c ia l ( E x c l. T r u s t A c c t s .) a . C o r p o r a te b. N o n c o r p o r a te 48 17 31 482 347 135 — + — 0 .6 0 .8 4 .0 9 .0 6 .4 2 .6 8 .6 6 .2 2 .4 439 113 326 2768 1838 930 + + + 2 .7 0 .1 8 .2 4 9 .9 3 4 .0 1 5 .9 4 9 .3 3 2 .7 1 6 .6 3370 354 3016 2566 314 2252 + + + 6 .1 7 .6 5 .9 4 4 .7 5 .7 3 9 .0 4 5 .5 5 .8 3 9 .7 168 198 — 7 .2 3 .9 3 .5 23 96 + 1 6 .1 1.5 1.7 4000 5628 1 0 0 .0 1 0 0 .0 T o t a l B u s in e s s a. C o r p o r a te b. N o n c o r p o r a te P e r so n a l A c c o u n ts a. F arm ers b . O th e r N o n p r o f it O r g a n iz a tio n s A l l O th e r D is tr ic t T o ta l + 4 .0 investment, loan, real-estate, and insurance firms, have balances totaling 482 million dollars, followed by con struction and services with 401 million, and by public utilities which include transportation and communication and power companies with 265 million. Nonprofit organi zations and trust funds of banks hold about 5 percent of the number and of the dollar volume of accounts. Although total deposits incfeased about 4 percent be tween January 1953 and January 1954, all types did not share in the increase. “A ll other deposits,” which include trust funds of banks and, to a lesser extent, foreign bal ances had the largest rate of increase— 16 percent, de spite a decline at large banks. Personal accounts, other than farm, increased 6 percent, although farm accounts, despite lower farm prices and farm income, increased 8 percent. Manufacturing and mining accounts and bal ances of services and construction firms also increased during the year. The increase in these deposits generally took place at all banks, although manufacturing and min ing balances declined at small banks and construction and service balances decreased slightly at banks with 10 mil lion to 100 million dollars in deposits. Deposits of public utilities, financial firms, and non profit organizations were the only types showing declines for the year. The decline in deposits of public utilities was generally in corporation accounts and was not restricted to banks of any particular size. The drop in holdings of financial firms was concentrated in the noncorporate ac counts and was general among banks of all sizes. Changes since 1943 have more significance, of course, than the relatively small changes during the past year. Personal depositors who now hold about 46 percent of the dollar volume of all deposits held only 43 percent in 1943. Financial businesses had the largest percentage in crease since 1943. In that year they held about 5.6 percent of the total dollar volume, compared with 8.6 percent in 1954. Although deposits of trade and manufacturing and mining firms increased, they did not increase as rapidly as holdings of other segments of the economy, since deposits held by these firms dropped from 33.5 percent of total deposits in 1943 to 28.8 percent in 1954. For the same period balances of public utilities dropped from 6.2 per cent to 4.7 percent. The postwar trend in demand deposits in this District has continued despite the recent softness in the nation’s economy. There were some shifts in distribution among accounts during 1953, but on a relative basis the changes were small. Manufacturing and mining, services and con struction, and personal deposits increased in relative impor tance, whereas balances of public utilities, nonprofit organ izations, and financial businesses dropped slightly. In each case, the shift was less than one percent. It would ap pear, therefore, that the economy of this District was not appreciably affected by the recent downturn and that the purchasing power of the region remains high. C harles S. O v e r m il l e r •6 • Sixth District Statistics Instalment Cash Loans No. of Lenders Report ing 35 17 Lender Federal credit unions. . State credit unions . . Industrial banks. . . . Industrial loan companies Small loan companies. . Commercial banks . . . S 11 31 32 Condition of 2 7 Member Banks in Leading Cities Outstandings Percent Change Apr. 1954 from March April 1954 1953 Volume Percent Change Apr. 1954 from March April 1954 1953 +9 —6 +0 +1 +1 +2 —1 +1 —9 +6 —10 —1 —2 +0 — 39 +4 +3 — 15 + 20 +1 — 40 —1 +9 +2 Retail Furniture Store Operations Percent Change April 1954 from Apr. 1953 Mar. 1954 Number of Stores Reporting Item Total sales.................................................................... 128 Cash sales......................................................................112 Instalment and other credit s a le s ..................... 112 Accounts receivable, end of month . . . . 118 Collections during m o n th ..................................... 118 Inventories, end of month......................................88 —2 —3 —3 —1 —7 —3 +6 + 10 +5 —1 —9 +3 W holesale Sales and Inventories* Type of Wholesaler No. of Firms Report ing Automotive supplies. . . Electrical— Wiring supplies Appliances . . Hardware................................. . Industrial supplies . . . . Lumber and bldg. mat’ l s . Plumbing & heating supplies Refrigeration equipment . . Confectionery...................... . Drugs and sundries . . . Dry goods ........................... , Groceries— Full-line . . . . “ Specialty lines . Tobacco products . . . . M iscellaneous...................... . T o t a l ........................... ..... . . 4 3 7 10 19 4 8 4 6 3 7 16 30 7 12 13 153 Sales Percent Change Apr. 1954 from Mar. Apr. 1954 1953 —7 —31 —14 +4 +5 —3 +4 +3 + 43 + 14 —9 —11 —4 —15 +9 +0 —1 No. of Firms Report______ ing + 10 —26 —30 —3 —8 —8 —1 +3 +24 +5 +8 —1 —1 —13 —0 + 10 —3 Inventories Percent Change Apr. 3 0 ,1 9 5 4 , from Mar. 31 Apr. 30 1954 1953 3 3 6 5 6 3 7 3 6 +7 +7 +8 —8 +2 —8 —1 —3 + 17 +3 —6 —22 —8 +1 +8 —3 —1 + 19 12 15 3 8 9 89 —8 —1 —4 —1 + 19 +0 —6 +2 +2 +0 + 11 —3 Department Store Sales and Inventories* Percent Change Place ALABAMA ............................ Birm ingham ...................... M o b ile ................................. Montgomery..................... FLORIDA ................................ Jack so n ville ...................... M ia m i................................. Orlando............................... St. Ptrsbg-Tampa Area . St. Petersburg . . . T a m p a ........................... GEORGIA ............................... A tla n ta ** ........................... Augusta................................ Columbus........................... M a co n ................................ Rome** ............................... Savannah** ...................... LO U IS IA N A ........................... Baton Rouge ...................... New Orleans...................... M IS S IS S IP P I...................... Jackson ................................. M e rid ia n **...................... TEN N ESSEE .......................... Bristol, Tenn-Va** . . Bristol-KingsportJohnson C ity** . . . Chattanooga ...................... K n o x v ille ........................... N a sh ville ........................... D IS T R IC T ............................... 1954 +18 + 12 +22 +22 +1 + 20 —3 —1 —3 —10 +3 + 18 + 18 + 15 + 18 + 24 +41 +20 + 15 +22 + 14 +21 + 18 +22 + 19 +2 + 15 + 23 +20 + 15 + 14 +1 —2 +3 +16 +20 4 Months 1954 from 1953 —5 —6 —1 —4 —1 +0 —1 —1 —2 —5 +1 +0 +2 +4 —4 + 10 +9 + 11 +5 + 13 —1 —7 —6 1953 +7 +6 + 15 +6 +7 + 16 +7 +4 +7 + 13 + 12 +12 +10 + 11 +5 Inventories Apr. 30,1954, from Mar. 31 Apr. 30 1954 —4 —2 1953 —14 —13 —2 +1 —5 —4 —13 +2 -^4 —13 —2 —1 —1 +i —io —6 —4 —4 —4 +2 —1 +2 —1 —1 —2 —1 —1 —3 —3 —3 —6 —6 —2 +3 —2 —6 —6 —3 —2 —12 —2 i —15 —6 +6 + 19 + 16 —4 +4 +0 +3 —5 —1 —5 + 10 —4 —1 —3 ^Includes reports from 126 stores throughout the Sixth Federal Reserve District. * *ln order to permit publication of figures for this city, a special sample has been con structed which is not confined exclusively to department stores. Figures for non-depart ment stores, however, are not used in computing the District percent changes. May 19 1954 Apr. 21 1954 May 20 1953 2,996,984 1,293,345 1,314,781 2,983,679 1,289,314 1,310,743 2,870,303 1,229,607 1,251,386 760,118 767,504 701,937 —1 +8 16,827 15,218 17,679 + 11 —5 34,356 89,180 12,839 401,461 1,703,639 33,770 86,831 10,490 396,930 1,694,365 37,190 91,132 10,466 392,982 1,640,696 +22 +1 +1 + 23 610,806 815,158 277,675 508,641 44,667 578,728 846,730 268,907 511,157 46,048 659,168 723,612 257,916 496,946 46,111 +6 —7 + 13 229,619 2,196,329 592,516 103,518 598,919 20,700 235,819 2,206,078 586,135 75,648 628,478 17,000 221,088 2,167,060 566,301 52,802 561,117 42,750 Item Loans and Investments— T o t a l ...................................... Loans— G r o s s ........................... Commercial, industrial, and agricultural loans. Loans to brokers and dealers in securities . Other loans for pur chasing or carrying securities........................... Real estate loans . . . Loans to banks . . . . Other loans ........................... Investments— Total . . . . Bills, certificates, and notes .......................... U. S. bonds .......................... Other securities . . . . Reserve with F. R. Bank . Cash in V a u lt .......................... Balances with domestic Demand deposits adjusted . Time deposits........................... U. S. Gov’t deposits . . . Deposits of domestic banks . Percent Change May 19,1954, from Apr. 21 May 20 1954 1953 +0 +0 +0 +4 +5 +5 +2 —8 —2 +3 +2 +4 —4 +3 —0 +8 +2 —3 —3 —3 +4 +1 +5 +96 +7 — 52 —0 +1 +37 —5 +22 Debits to Individual Demand Deposit Accounts (In Thousands of Dollars) __________ Percent Change______ -Based on information submitted by wholesalers participating in the Monthly Wholesale Trade Report issued by the Bureau of the Census. Sales April. 1954 from Mar. Apr. (In Thousands of Dollars) ALABAMA Anniston . . Birmingham. Dothan . . Gadsden . . . . . . . . . . Montgomery . . . Tuscaloosa*. . . FLORIDA Jacksonville . . . Greater Miami* . Orlando . . . . Pensacola . . . St. Petersburg . . T am p a..................... West Palm Beach* GEORGIA Augusta . . . . Brunswick . . . Col umbus. . . . Elberton . . . . Gainesville* . . . Griffin* . . . . Macon...................... Newnan . . . . April 1954 March 1954 April 1953 27,767 435,260 23,104 164,823 95,853 32,030 30,208 477,892 20,299 23,779 191,541 103,228 35,208 29,273 416,067 17,879 24,406 161,090 98,061 34,093 458,374 432,624 672,106 95,904 57,082 105,317 204,207 71,937 482,580 503,092 770,270 102,521 61,177 116,395 221,728 77,701 424,893 418,873 636,829 94,898 53,417 102,061 193,544 67,356 37,999 ,298,365 81,591 12,594 74,981 4,653 26,902 12,774 82,357 10,207 29,634 120,217 18,532 40,467 1,359,221 83,672 12,697 79,609 4,614 28,262 13,674 81,992 10,863 31,580 126,625 19,059 39,187 1,233,077 86,700 12,258 77,162 4,823 25,545 13,459 77,548 11,352 27,695 124,849 15,619 20,666 Savannah . . . . Valdosta . . . . LOUISIANA Alexandria*. . . 44,715 47,027 42,927 Baton Rouge . . 133,265 147,271 130,281 Lake Charles . . 52,911 54,712 54,590 New Orleans . . 956,198 1,054,591 915,140 M ISSISSIPPI Hattiesburg . . . 20,886 22,346 21,143 Jackson . . . . 156,681 163,538 159,288 Meridian . . . . 26,294 28,239 31,607 Vicksburg . . . . 15,198 17,279 16,739 TENN ESSEE Chattanooga . . . 207,475 229,692 214,403 Knoxville . . . . 139,888 153,918 144,953 Nashville . . . . 432,996 493,338 428,124 SIXTH DISTRIC T 32 Ci t i es. . . . 6,004,269 6,518,183 5,833,305 UNITED STATES 345 Cities . . 154,661,000 171,260,000 :1 45,567,000 *NotincludedinSixthDistrict totals. April 1954 from Year-to-date March April 4 months 1954 1954 1953 from 1953 —8 —9 +2 —3 — 14 —7 —9 —5 — 14 — 13 —6 —7 —10 —8 —5 +5 + 16 —5 +2 —2 —6 +8 +3 +6 +1 +7 +3 +6 —7 +7 —6 —3 +5 —6 +3 —3 —4 +5 —5 —5 —3 —1 —6 +1 —5 —7 +0 —6 —6 +6 —10 —5 +1 +9 —6 +4 +2 +1 +6 +7 +8 +1 +7 +5 +5 —1 —3 +6 —9 +4 —3 —7 +9 —7 +2 +3 +7 —4 + 19 + 10 —5 —3 —5 +4 +3 +3 —3 +2 —10 +2 —3 —9 —3 +5 —7 —4 —7 —1 —2 —3 +6 — 17 —9 +1 —5 — 16 +3 —12 —3 —4 +1 —0 —2 +6 —8 +3 +3 —10 +6 +8 —12 —10 —9 • 7 • Sixth District Indexes Manufacturing Employment Mar. 1954 UNADJUSTED District T o t a l ...................... I l l A la b a m a ............................ 104 F lo rid a ................................ 139 Georgia................................. 113 Lo u isia n a ........................... 105 M ississip p i....................... 107 Tennessee...........................I l l SEASONALLY ADJUSTED District T o t a l ...................... 110 A la b a m a ............................ 103 F lo rid a ................................ 133 Georgia.................................113 L o u isia n a ...........................107 M is s is s ip p i....................... 108 Tennessee...........................110 1 9 4 7 -4 9 = 100 Manufacturing Cotton Payrolls Consum ption** Feb. 1954 Mar. 1953 Mar. 1954 Feb. 1954 Mar. 1953 Apr. 1954 Mar. 1954 Apr. 1953 112 104 140 113 108 106 llO r 115r 107r 136r 116r 106r 115r 116 151 136 187 150 149 155 154 151r 136r 192r 150r 150 153 153r 155 141 183 160 145 163 159 92 90 — 93 — 91 94 94 — 94 — 113 90 106 105 — 105 — 135 108 150 136 175 150 153 160 154 150r 136r 179r 149r 156 156 154r 154 141 171 160 149 168 159 92 — — — — —. — 90 — — — — — — 106 — — — — — — 112 103 132 113 111 108 HOr 113 106 131r 116r 108r 115 115 110 Construction Contracts 118r 129p 120r 132 lllr 116 112 113 120r 135 108r 116 106r 116 122r 133 139r 129 125r 134 116r 120 117r 128p 140r 140 117 123 143r_____________ 143p 110 108 92 97 106 95 93 106 100 133 100 108 139 115 147 Mar. 1954 Apr. 1953 160 204 189 166 186 171 176 115 117 196 248 183 141 195 369 __ — — — — — — __ — — — — — — __ — — — — — — 10 1 162 Apr. 1954 Mar. 1954 Apr. 1953 87 83 91p 87 93p — 78 82 80r 89r 84 90 — 66r 89 90 82 — 77 96 93r 92r 98r 95 106 — 75r 86 lO lp 93 99p — 77 86 88 94 91 98 96 87 —■ 76 Other District Indexes __________ Adjusted_________ _________Unadjusted________ Apr. Mar. Apr. Apr. Mar. Apr. _________________________________ 1954 1954 1953___________ 1954 1954 1953 117 120 107 105 116 103 101 118 116 127 112 117 135 121 141 Apr. 1954 201 Departm ent Store Sales and Sto cks** D IS TR IC T S A LES * . . . . 127p Atlanta 1 ....................................132 Baton Rouge.............................. 105 Birmingham........................... ... 110 Chattanooga........................... ... 134 Jackson..................................... ... 115 Jackso n ville ...........................117 Knoxville..................................... 129 M a co n ......................................... 133 M ia m i......................................... 129 N a sh ville ................................ 114 New Orleans............................122p St. Ptrsbg.-Tampa Area . 136 T a m p a ..................................... ... 120 D ISTRIC T STOCKS* . . ■ 135p Furniture Store S a le s * / * * 117r 110 108 106 114r 104 lOOr 115 118 125r 117r 114r 139 119 152r 'To permit publication of figures for this city, a special sample has been constructed that is not confined exclusively to department stores. Figures for non-department stores, how ever, are not used in computing the District index. *For Sixth District area only. Other totals for entire six states. **D aily average basis. Sources: Mfg. emp. and payrolls, state depts. of labor; cotton consumption, U. S. Bureau Census; construction contracts, F. W. Dodge Corp.; furn. sales, dept, store sales, turn over of dem. dep., FRB Atlanta; petrol, prod., U. S. Bureau of Mines; elec. power prod., Fed. Power Comm. Indexes calculated by this Bank. Adjusted Mar. 1954 Apr. 1954 Apr. 1953 Construction contracts* . . . R e sid e n tia l................................ Petrol, prod, in Coastal Louisiana and Mississippi**. 144 Furniture store stocks* . . . . 119 Turnover of demand deposits* . 19.8 10 leading c i t i e s ..................... 21.7 Outside 10 leading cities . . 16.7 Elec. power prod., total** Mfg. emp. by type Fabricated metals . . 142 123 19.0 20.9 16.2 . . . Trans, equip.................................. Unadjusted Mar. 1954 252r 217r 278r Apr. 1953 173 159 184 20.0 21.2 120 20.6 22.0 16.7 16.9 144 131 19.2 24.0 16.2 147 127 141r Mar. 1954 Feb. 1954 Mar. 1953 Mar. 1954 Feb. 1954 Mar. 1953 195 191 184 141 123 141 108 85 142 95 94 165 141r 143r 120 r 153r 107r 91r 140r 105r lO lr 154r 141 126 145 107 140r 123 146r 143r 123r 157r 106r 92r 140r 106r 102 r 160r . Lbr., wood prod., furn. & fix. Paper and allied prod.. . . Primary metals.......................... r Revised 141r 119 20.4 21.5 17.2 Apr. 1954 180 216 152 122 144r 111 87 140 96r 95 167 86 110 86 142 96 95 172 141 97r 95 172 p Preliminary MINNEAPOLISO EW YORK ILADELPHIA Salt Lake City ASHINGTON KANSAS CITY LOUIS emphis Oklahoma City ittle Rock o R e se r v e B ank C itie s • B ranch B ank C itie s mm D istric t B o u n d a ries — B ranch T e rr ito ry B o u n d a ries B o a rd o f G o v e r n o rs o f t h e F e d e r a l R e se r v e S y s te m DALLASO [Nashville ATLANTA
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