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Monthly Review ATLANTA, G E O R G IA , M A Y 31, 1956 J n % is ls s u e : Q u e s tio n s a n d A n sw e rs on B u s in e s s L o an s F i f t e e n Y e a r s T h is M o n t h C a n G a i n s in L i v e s t o c k R e c e i p t s H o ld F arm In com e U p? D is tr ic t B u s in e s s H ig h lig h t s S ix tk D iS tr id S ta tis tic s : C o n d itio n o f 27 M em b er Banks in Leading C itie s D ebits to Individual Dem and D eposit A cco u n ts D epartm ent S to re Sales and Inventories Instalm ent Cash Loans R eta il Furniture S to re O p erations W holesa le Sales and Inventories S ix t h V iS tr id In d e x e s : Construction 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 Nonfarm Em ploym ent Petroleum Production Turnover o f Dem and D eposits S w f e r a l If e e i r e B a n l i 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 A lth o u g h n o m ajor ex p a n sio n in g en era l b u sin ess a ctiv ity is ev id en t, th ere are fe w signs o f d eclin e. T o ta l co n su m er sp en d in g is h igh , reflectin g in p art greater p a y ro lls, u se o f cred it, an d a red u ced rate o f savin gs. O u tp u t o f b o th m a n u fa ctu red an d farm p rod u cts is still siza b le. P riv a te d em an d fo r b an k cred it co n tin u e s to grow . T h e w e a k n esses, m a n i fe sted b y d eclin es in a u to m o b ile cred it and sa les, b y effects o f th e steel strik e, an d b y slo w er a ctiv ity in th e lu m b er an d te x tile in d u stries, are n o t stron g e n o u g h to tem p er th e e x p a n sio n a ry fo rces. e m p l o y m e n t , seasonally adjusted, was practically unchanged in March and in April, according to preliminary estimates, held near these records. M a n u f a c t u r i n g p a y r o l l s , seasonally adjusted, advanced in March and, according to preliminary estimates, continued upward in April. Early estimates for April also indicate in advance in adjusted e m p l o y m e n t , which had dropped somewhat in March. S t e e l o p e r a t i o n s in Birmingham in late April dropped drastically because of a labor dispute at a major steel plant. Production in late May remained depressed. R e s i d e n t i a l c o n s t r u c t i o n c o n t r a c t s , in dollar value, set a new record in April. T e x t i l e a n d l u m b e r a c t i v i t y weakened as seasonally adjusted employment in both industries in March declined from February and was below a year ago. D e p a r t m e n t s t o r e s a l e s in May, after adjustment for seasonal variation and trading day differences, increased slightly from April. F u r n i t u r e s t o r e s a l e s in April, seasonally adjusted, increased sharply from March. N e w c a r r e g i s t r a t i o n s in March, although larger than in February, were consid erably lower than a year ago. C o n s u m e r s a v i n g s in April, seasonally adjusted, as indicated by time deposits and savings and loan shares, were down from March, but ordinary life insurance sales increased. C o n s u m e r a u t o m o b i l e c r e d i t o u t s t a n d i n g at commercial banks declined in April from a month earlier for the first time since last summer. All other types of instal ment credit, however, increased. B r o i l e r p r o d u c t i o n is higher than it was this time last year, but farmers are sharply curtailing the numbers started, apparently because prices are well under a year ago. F a r m p r i c e s of hogs and cattle have risen, but remain below those of last year; prices of cotton, eggs, and milk are higher. O u t s t a n d in g f a r m p r o d u c t i o n d e b t at member banks was about the same in April 1956 as a year earlier; outstandings of farm real-estate debt were larger. F a r m c a s h r e c e i p t s through March this year increased from those of a year ago, but declined in the nation. T o t a l l o a n s at all member banks increased contra-seasonally during April and, according to preliminary information, continued to gain in May. S p e n d i n g , as measured by seasonally adjusted bank debits, rose during April and remains well above the year-ago level. T o t a l d e p o s i t s at all member banks increased contra-seasonally during April as gains in demand deposits more than offset declines in interbank, United States Government, and time deposits. T o t a l i n v e s t m e n t s rose slightly in April, reflecting primarily a gain in Treasury bills. B u s i n e s s a n d r e a l - e s t a t e l o a n s a n d l o a n s t o c o n s u m e r s increased in April; loans to manufacturing and mining and trade firms expanded substantially. F r e e r e s e r v e s became negative in May as excess reserves declined and borrowing from the Federal Reserve Bank increased somewhat. N o n fa rm 2 Q u e s t io n s a n d A n s w e r s o n B u s in e s s L o a n s District Member Banks Participate in Survey For the first time in about ten years, authoritative answers can now be given to many detailed questions about commercial banks’ business lending practices. Per haps the questions most frequently posed on this subject which the loan survey data serve to answer are: What types of business firms obtain funds from commercial banks? Has the pattern of bank lending conformed to the rapidly changing economic structure of the area? How do the terms today compare with those immediately after the war? Are interest rates higher now than they were ten years ago? Other questions pertinent to business lending by commercial banks and covered in the loan survey data will be discussed in later issues of this Review . Most of us know the fable of the blind men who reached very different conclusions about what an elephant is really like, depending on the part of the animal they hap pened to touch. The one who touched the knee thought the elephant was like a tree; another, touching the trunk, thought it was very like a snake; still another, happening to fall against the side, argued that the elephant was like a wall. When it comes to judging commercial bank lending, many of us are in a somewhat similar position. We may not be quite as blind as the men in the fable, but may nevertheless have our judgment distorted by our own per sonal view which acts as a kind of blinder. A businessman whose loan application is turned down will argue that banks lend only to farmers. The manufacturer who needs long-term credit and can’t get it feels that sales finance companies get all the money. A would-be borrower in the construction business concludes that banks are not in terested in the building industry. On the other hand, the banker states that all legitimate needs of business are being met. W h a t B u s in e s s e s O b ta in F u n d s fr o m B a n k s? During the last decade, business firms increased their borrowing tremendously. On November 30, 1946, total business loans at Sixth District member banks amounted to 565 million dollars, and on October 5, 1955, they totaled 1,429 million. That banks are making more loans to businesses is thus obvious. The survey figures show that the pattern of lending has changed. Measured in dollars, loans to food, liquor, and tobacco manufac turers, wholesale and retail trade firms, and public utilities declined in importance, whereas manufacturers of metals and metals products and of petroleum, coal, and chemicals increased substantially; sales finance companies and con struction and service firms also increased their share of bank credit. To some extent the changes in importance of the vari ous types of business firms reflect the conversion from a war economy, which still prevailed in 1946, to peacetime production in 1955. The dates of the two surveys, more over, are not exactly comparable. By and large, however, It is not very often that we get the chance to take off our blinders and see the whole elephant. Such a chance is now afforded by the Federal Reserve System’s survey of business loans conducted recently. About 1,900 banks listed approximately 190,000 loans that were on their books on October 5, 1955. About 8,000 of these loans were on the books of sampled banks in this District. Because the reporting banks were selected on a scientific sampling basis, it is possible to estimate the structure of business lending at all member banks in considerable detail. The most recent information previously available was for November 1946. C o m m e r c ia l a n d I n d u s t r ia l L o a n s b y T y p e o f B o r r o w e r 1 9 5 5 C o m p a r e d w it h 1 9 4 6 , S ix t h D is t r ic t M e m b e r B a n k s A m o u n t o f L oans N u m b er o f L oans P ercent o f D istrict T otal M illions o f dollars T ype o f B orrow er M anufacturing and M ining . . . . Food, liquor, and t o b a c c o ...................... Textiles, apparel, and lea th er...................... Metals and metals p r o d u c t s ...................... Petroleum, coal, chemicals, and rubber All other manufacturing and mining . . Trade ................................................................... Wholesale1 ........................................................ R e t a i l ............................................................. Other ................................................................. Sales finance c o m p a n ie s ............................ Transportation, communication, and other public u tilitie s.................................. C o n s tr u c tio n .................................................. Services ............................................................. All other nonfinancial2 .................................. A ll b o r r o w e r s....................................... N ov. 20, 1946 Percent change Am ount __________ N um ber 1955 1946 1955 1946 Oct. 5, 1955 N ov. 20, 1946 Percent change Oct. 5, 1955 317.8 70.5 52.7 62.0 43.6 89.0 403.5 189.4 214.1 707.6 118.8 155.0 50.8 23.9 18.6 12.4 49.3 220.0 131.9 88.1 190.2 24.5 + 1 0 5 .0 + 38.8 + 120.5 + 2 3 3 .3 + 2 5 1 .6 + 80.5 + 83.4 + 43.6 + 143.0 + 2 7 2 .0 + 3 8 4 .9 14,345 2,742 1,665 2,583 1,190 6,165 44,471 9,759 34,712 45,032 1,186 6,664 1,403 564 802 424 3,471 23,988 6,804 17,184 14,904 655 + 1 1 5 .3 + 95.4 + 195.2 + 2 2 2 .1 + 180.7 + 77.6 + 85.4 + 43.4 + 102.0 + 2 0 2 .1 + 81.1 22.2 4.9 3.7 4.3 3.1 6.2 28.3 13.3 15.0 49.5 8.3 27.4 9.0 4.2 3.3 2.2 8.7 38.9 23.3 15.6 33.7 4.3 13.8 2.6 1.6 2.5 1.2 5.9 42.8 9.4 33.4 43.4 1.1 14.6 3.1 1.2 1.8 0.9 7.6 52.7 15.0 37.7 32.7 1.4 68.5 112.4 132.2 275.7 1,428.9 46.6 33.5 26.2 59.4 565.2 + 47.0 + 2 3 5 .5 + 4 0 4 .6 +364.1 4-152.8 2,544 9,016 17,706 14,580 103,848 1,608 2,845 4,321 5,475 45.556 + 58.2 + 2 1 6 .9 + 3 0 9 .8 + 166.3 + 1 2 8 .0 4.8 7.9 9.2 19.3 100.0 8.3 5.9 4.7 10.5 100.0 2.5 8.7 17.1 14.0 100.0 3.5 6.3 9.5 12.0 100.0 1 Includes commodity dealers. 2 Includes real-estate firms. • 3 • the shift reflects the changing structure of the District’s economy. Perhaps the most striking gain in the District’s economy was the growth of manufacturing. Between October 1946 and the same month in 1955, employment in the metals and metals products industry increased 78 percent, the largest gain in the manufacturing group. At the same time, the gain in textile manufacturing was 19 percent and in food, liquor, and tobacco, only 16 percent. Thus, the movement toward greater industrialization materially in fluenced the lending pattern of commercial banks. Nevertheless, insofar as numbers are concerned, loans to wholesale and retail trade firms continue to be the largest single outlet for bank credit. Such firms constitute a large share of the business establishments in this District, and therefore would be expected to be frequent borrowers. But trade firms are important borrowers for still other reasons. The credit demands of such firms fit in with the traditional lending practices of commercial banks. Trade loans are short-term, usually about 90 days, secured by inventory, and usually self-liquidating, that is, the sale of the inventory provides funds for the payment of the loan. Furthermore, trade loans are attractive to small banks and the large number of small banks in this District assures a high proportion of such loans in the area. Although, by number, loans to the corner drug store and other retail stores are the most important type, such loans generally are not large and make up only 15 percent of the dollar amount. The decline in relative importance of these loans, as shown in the table on page 3, can be attributed to larger gains by other borrowers. Sales finance companies, for example, increased their borrowing 385 percent during the ten-year period partly by increasing the number of loans but primarily by borrowing larger amounts. Service firms, such as hotels, barbershops, and the like, had only 4,000 loans in 1946 but 18,000 in 1955. This gain undoubtedly reflects the increased tourist trade, notably in Florida, as well as higher incomes throughout the District. W h a t a r e t h e M a t u r it ie s o n B u s in e s s L o a n s ? Terms on loans to business firms held to the pattern of 1946; short-term loans continue to dominate bank lending, and interest rates continue to vary inversely with the size of borrower. Banks make most of their loans for one year or less, but they pattern their loans to suit the needs of their borrowers. With the exception of loans to public utilities, loans were mostly short-term, as is shown on the chart. Sales finance companies are pre dominantly short-term borrowers. Despite the increase in importance of loans to these companies, the amount of long-term loans, nevertheless, increased significantly after 1946 and now constitutes 21 percent of the total, compared with 14 percent in 1946. More than likely this change reflects to some extent the increased lending to metals manufacturers and also the greater bank financing of mortgage lenders. B u s in e s s L o a n s O u t s t a n d in g , O c t o b e r 5 , 1 9 5 5 B y T y p e o f B o r r o w e r a n d b y M a t u r it y Sixth District Member Banks Percent of Total Busme S e r v ic e S a le s F in a n c e P u b li c A ll F ir m s U t il i t ie s O the r (Includes Commodity Deolers) W h a t D o t h e L o a n s C o s t? Average interest rates at banks in this District are higher than they were in 1946, when rates were held low for war financing, and small borrowers continue to pay more for their loans than do large borrowers. To some A v e ra g e In t e r e s t R a t e s b y M a t u r it y a n d A sse ts o f B o rro w e r Sixth District Member Banks _________________________________October 5, 1955_________________________________ A ssets o f B orrow er (In thousands of dollars) L oan s Short-term Long-term U n d e r 5 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . 5 . 7 3 5 0 - 2 5 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . 5 . 0 6 2 5 0 - 1 , 0 0 0 ....................................................... ........... 4 . 6 0 1 .0 0 0 - 5 ,0 0 0 ........... 4 . 1 5 5 .0 0 0 - 2 5 ,0 0 0 ........... 3 . 7 9 2 5 .0 0 0 - 1 0 0 ,0 0 0 3 .5 9 1 0 0 ,0 0 0 a n d o v e r . . . . 3 .0 6 A l l b o r r o w e r s ..................................... 4 .5 1 6 .8 1 5 .8 0 4 .8 3 4 .5 0 3 .8 4 3 .0 1 3 .3 1 4 .8 9 extent this relationship is explained by size of loan rather than by size of borrower, as firms with large assets usually borrow larger amounts than do smaller firms. Since the cost of servicing the loan does not increase proportionately with the size, the bank can afford to make larger loans at lower rates. Rates on long-term loans tend to run higher than on short-term loans primarily because, when funds are tied up for a longer period, the bank underwrites a greater risk. C h a r l e s S. O v e r m i l l e r T h e S o u th a n d th e S ix t h F e d e ra l R e se rv e D i s t r i c t in t h e M id - T w e n t i e t h C e n t u r y The greater part of this Bank's Annual Statement and Report for the Year 1955 is devoted to a review of the economic expan sion and achievements in the Sixth Federal Reserve District in the twentieth century. The smaller part is confined to considera tions relating to the Bank itself. Copies of the publication are available upon request to the Research Department, Federal Reserve Bank of Atlanta, Atlanta 3, Georgia. B a n k A n n o u n c e m e n ts The Peoples Bank of North Miam i Beach, North Miam i Beach, Florida, which opened for business on M ay 16, is welcomed to membership in the Federal Reserve System. Officers of the new bank are Frank H . Wilier, President; Agnes B . Barber, Executive Vice President; Roland M . Stafford, Vice President and Cashier; Paulk Reeves and Charles W. Lantz, Vice Presidents; and R obert O. Ly e ll, Jr . and Lo u is J . D iek, Assistant Cashiers. Capital stock totals $600,000 and surplus $ 1 2 0 ,0 0 0 . On M ay 7, the newly organized, nonmember Murray H ill Barnett Bank, Jacksonville, Florida, opened for business and began to remit at par for checks drawn on it when received from the Federal Reserve Bank. Its officers are Robert M . Baird, President, and Roland S. Kennedy, Vice President and Cashier. Capital amounts to $300,000 and surplus and undivided profits to $125,040. Another newly organized, nonmember bank — the Seminole Bank of Tampa, Tampa, Florida— opened on M ay 9 as a par-remitting bank. Its officers are Gordon E . M arks, President; Julian H . Lifse y, J r ., Vice Presi dent; and J . D . Gibbons, Cashier. The bank’s capital amounts to $300,000 and its surplus and undivided profits to $100,000. On M ay 22, the Security Exchange Bank, West Palm Beach, Florida, opened for business as a nonmember state bank and began to remit at par. Its officers are B . F . Paty, President; Lawrence H . Skeen, Executive Vice President; and Taylor G . Grant, Cashier. It has capital of $450,000 and surplus of $90,000. SPECIAL STU D Y AVAILABLE F if t e e n Y e a r s T h is M o n th Most Americans have shared in the far-reaching savings program that began May 1, 1941, with the birth of the Series E bond. Today, over 40 million persons hold 58 billion dollars in bonds of the various series. In itself, that accumulation is an achievement, but of perhaps greater import, from another view, has been the contribution the program has made to economic stability. Bankers, particularly, realize how important that func tion of the program is and that realization accounts for the constant, widespread participation of the nation’s bankers in the savings bond program. The services they provide as issuing and redemption agents have made possible the widespread participation of the public. In this Federal Reserve District alone, 1,571 commercial banking officers are authorized agents for United States savings bonds. The lodging of a large part of the growing debt in the hands of individuals during the years of World War II was, as most bankers realize, one of the reasons for the postwar price inflation. Price pressures resulting from the growth in public debt, however, would have been much greater had not a large portion of it been lodged rather permanently in the hands of individuals. When the Government borrows from individuals (who purchase savings bonds) rather than from banks, a brake is applied to expansion in the money supply. In 1941, savings bonds made up only 9.6 percent of the total Government debt, but by the end of 1950, 22.6 per cent of the total debt was in this form. These two figures are visible marks of the increasing success of the program as an economic stabilizer. Maintaining the proportion at approximately that percentage since then is further evi dence of the program’s success in keeping a large portion of the public debt in the hands of individual holders. In peacetime, as well as in wartime, the savings bond program is a stabilizer in the nation’s economy. U n it e d S t a t e s S a v in g s B o n d s O u t s t a n d in g Economic Study No. 4, titled “The Horticultural Specialty Industry in the Sixth District,” is available for distribution. This industry is one of several in this area which was practically unnoticed until a few years ago and which is now making a definite con tribution toward raising the income of the region. It is composed of many small units and its structure is still undergoing changes. The study deals, for the most part, with the specialization, marketing, All Series, 1941-55 Billion f - 60 and finance problems that have accompanied those changes. Other studies in the series published previously and also available are: Economic Study No. 1, Bal ance Sheet of Agriculture; No. 2, Tufted Textiles; '42 '44 '46 '48 '50 '52 '54 '48 '50 '52 '54 Percent of Total Federal Debt and No. 3, The Cypress Lumber Industry. Address requests to: Research Department, Fed eral Reserve Bank of Atlanta, Atlanta 3, Georgia. '42 '44 '46 • 5 • Percent Can Gains in Livestock Receipts Hold Farm Income Up? District farmers are not likely to match their 1955 incomes this year. Crop yields last year were exceptionally good and, despite falling prices, farm cash receipts were only 4 percent below the 1953 peak. Even with favorable weather and good cultural practices, crop yields are likely to fall below last season. Furthermore, acreages of some im portant crops were cut again this year and price supports are generally lower. Estimates of harvested acreage for some important District cash crops based on reports of spring planting intentions by the United States Department of Agriculture and announced acreage allotments indicate sizable cuts I n d e x o f H a r v e s t e d A c r e a g e , S p e c if ie d C r o p s Sixth District States, 1953-56* month since October 1952. But with substantial Govern ment-held stocks and lower price supports for the new crop, prices are likely to drift downward. Prices of eggs, milk, pork, and beef, on the other hand, declined during most of the first quarter of this year, but have strengthened recently and are expected to continue strong through the summer and early fall. Later in the year, however, prices of meat animals, except top-grade cattle, may drop to near last fall levels. If farm prices and output decline as expected, farm cash receipts will be below last year’s receipts. The se verity of the decline, of course, depends largely on weather developments. With favorable weather, farmers may be able to keep yields high. Furthermore, supports will pre vent sharp declines in prices of major crops, and expected strong consumer demand likely will prevent substantial declines in prices of livestock and livestock products. Cash receipts, thus, should not decline to the 1954 level. Farm production costs are about the same as last spring. Wage rates, having risen since January, are 7 percent above last April. Farm machinery and fuel costs have I n d e x o f C a s h R e c e ip t s f r o m F a rm M a r k e t in g s United States and District States, 1950-55 Rice Tobacco M956 Estimated by this bank Cotton in crop production this year. Cotton allotments were cut 6 percent to 4.8 million acres, rice acreage was cut 18 per cent to 0.5 million acres, and peanut acreage was cut 7 per cent to 0.8 million acres. Tobacco acreage was reduced about 4 percent from last year’s 212,000 acres. The only principal District crop for which an increase in acreage may develop is soybeans. The 1.7 million indicated har vested acreage is nearly 10 percent above last year. Gains in livestock production likely will offset some of the decline in crop production. Ample supplies of feed crops have induced farmers to increase milk, egg, and broiler production. Chick placements for broiler produc tion through the first quarter were 50 percent above the same period last year, and milk and egg production were up about 5 percent. Cattle and hog slaughter are declin ing, but high yields of feed crops could help farmers push this fall’s hog marketings above those of last fall. Although prices of some farm commodities have risen recently, large supplies will likely push prices of some com modities downward as the new marketing season begins. Cotton prices, for example, were higher in April than any risen too, as have prices of most other industrial products used in farm production. Probably offsetting those in creases, however, are declines that have occurred in some other major items going into District farm production. Dairy and poultry feeds, hay, and fertilizers, for example, have dropped since last spring. Lower cash receipts and steady farm costs will bring a decline in net farm income. District farmers will have fewer dollars to spend for family living and debt repay ment than last year. Declines, however, likely will not be large enough to seriously impair debt repayment ability, and changes in amounts rung up on cash registers in areas of the District will be scarcely noticeable if the weather looks on farmers with favor. T ^ TT J ohn T. H arris S ix th In s t a lm e n t C a s h D is tr ic t S ta tis tic s C o n d it io n o f 2 7 M e m b e r B a n k s in L e a d in g C it ie s L o a n s (In Thousands of Dollars) Percent Change Lender Federal credit unions . . State credit unions . . . Industrial banks . . . . Industrial loan companies Small loan companies . . Commercial banks . . . . . . . . Outstandings Apr. 1956 from Apr. Mar. 1956 1955 + 19 +1 + 22 +0 +5 +0 +0 +8 +8 +1 —0 + 15 Volume Apr. 1956 from Mar. Apr. 1956 1955 —6 + 13 + 15 + 18 +4 —3 No. of Lenders . . 39 . . 14 . . 8 . . 10 . . 32 . . 30 —8 —2 —1 — 24 — 13 —3 R e t a il F u r n it u r e S t o r e O p e r a t io n s Item Total sales ...................... Cash sales . . . Instalment and other credil: salts . Accounts receivable, end of month . Collections during month Inventories, end of month . _ . . . . . Percent Change April, 1956, from Apr. 1955 Mar. 1956 —1 +2 +6 . +10 —2 +1 —1 +9 +5 —8 +2 +2 W h o le s a le S a le s a n d In v e n t o r ie s * Percent Change Sales Inventories April 1956 from April 1956 from March March April April No. of 1956 1955 Firms 1956 1955 21 +7.1 +8.5 + 2.1 +2.3 — 1.2 11 — 12.5 — 5.6 — 0.3 7 +5.9 + 15.6 — 18.8 + 13.6 — 19.4 — 6.1 + 12.0 — is .7 — 18.9 — 52.5 6 — 10.5 + 3.9 No. of Firms Type of Wholesaler Grocery, confectionery, meats . . 31 Edible farm products . . . . . 12 . 11 Drugs, chems., allied prods. Dry goods, ap p arel................. . 8 . 6 Furniture, home furnishings Automotive................................ . 6 Electrical, electronic and + 26.7 — 5.2 — 5.3 12 + 1.5 appliance g o o d s ................. . 15 +5.9 — 1.0 10 — 8.3 — 7.0 Hardware................................... . 13 — 1.3 13 — 7.3 +6.9 Plumbing and heating goods . . 17 — 6.0 +76.2 +2.5 13 + 0.6 Lumber, construction materials . 20 + 2.9 +37.2 27 + 13.0 + 15.1 Machinery: equip, and supplies . 33 + 21.6 14 +24.4 + 48.9 + 18.9 In d u s t r ia l.......................... . 14 + 24.8 -Based on information submitted by wholesalers participating in the Monthly Wholesale Trade Report issued by the Bureau of the Census. D e p a rtm e n t S to re S a le s a n d In v e n t o r ie s * Percent Change Sa!e'» April 1956 from March April 1955 1956 Place A L A B A M A .......................... — 13 —8 Birmingham......................— 15 —9 Mobile.............................. — 16 —7 Montgomery......................— 7 — 12 FLO RID A .............................. — 15 —1 Jacksonville......................— 13 — 14 O rla n d o .......................... — 20 — 11 St. Ptrsbg-Tampa Area . — 14 —1 St. Petersburg . . . . — IS +2 Tam pa.......................... — 10 —4 GEORGIA.............................. — 14 — 13 Atlanta**.......................... — 14 — 12 A u g u s ta .......................... —23 — 20 Columbus..........................— 10 — 14 M acon.............................. — 17 — 14 R o m e * * .......................... — 21 — 12 Savannah**......................— 11 —9 LOUISIANA.......................... — 14 —2 Baton Rouge......................—18 —4 New Orleans......................— 17 —5 M IS S IS S IP P I......................— 11 —8 Jackson.............................. — 10 —8 M eridian**......................— 9 —9 T E N N E S S E E ......................— 15 — 14 Bristol (Tenn. & V a.)** . — 13 — 13 Bristol-KingsportJohnson City** . . . . — 15 — 16 Chattanooga...................... — 17 — 15 Knoxville.......................... — 13 — 12 Nashville.......................... — 17 — 13 D I S T R I C T .......................... — 14 —7 4 Months 1956 from 1955 +5 +5 +6 —1 +9 +6 +2 +6 +7 +5 +1 —0 —4 +2 +4 +23 +3 +7 +8 +5 +5 +3 +8 +2 +2 +2 +2 +2 +2 +5 Inventories April 30, 1956, from March 31, April 30. 1955 1956 +5 + 16 + 16 +6 —1 +1 + 16 +4 + 15 +2 +4 +3 +1 +1 +1 + 30 +5 +3 +5 +3 —4 +3 +3 +2 +4 +2 +8 + 23 +4 +4 +5 +U + 15 +34 +4 + 10 *Reporting stores account for over 90 percent of total District department store sales. *ln order to permit publication of figures for this city, a special sample has been con structed that is not confined exclusively to department stores. Figures for non-depart ment stores, however, are not used in computing the District percent changes. May 16, Item 1956 Loans and investments— 3,334,460 T o t a l .............................. 1,756,342 Loans— N e t .......................... 1,799,740 Loans— G r o s s ...................... Commercial, industrial, 974,613 and agricultural loans . Loans to brokers and 38,257 dealers in securities . . Other loans for purchasing 48,297 158,211 or carrying securities . Real estate loans . . . . 15,230 Loans to banks.................. 565,132 Other loans ...................... 1,578,118 Investments— Total . . . . Bills, certificates, 529,777 and notes...................... 737,614 U. S. bonds ...................... 310,727 Other securities................. 505,471 Reserve with F. R. Bank . . 49,878 Cash in vault.......................... Balances with domestic banks 245,780 Demand deposits adjusted . . 2,414,440 Time d e p o sits...................... 630,353 U. S. Gov’t deposits . . . . 87,068 Deposits of domestic banks . 697,127 Borrowings.......................... 30,000 *100 percent or over. Percent Change May 16,1956, from April 18, May 18. 1956 1955 —1 +3 +0 + 18 + 19 +1 Apri' 18, May 18, 1956 1955 3,354,976 3,248,216 1,752,857 1,484,133 1,780,835 1,508,562 964,788 857,018 +1 + 14 38,733 20,123 —1 +90 48,807 36,607 131,438 154,663 17,145 5,132 556,699 458,244 1,602,119 1,764,083 —1 +2 —11 +2 —2 —11 —7 — 16 569,042 722,582 310,495 531,293 49,301 633,461 802,712 327,910 518,776 44,695 311,011 262,170 2,424,952 2,370,111 623,407 636,836 80,655 99,127 765,571 642,719 46,100 39:450 + 32 +20 * +23 +2 —8 +0 —5 +1 —5 —3 + 12 —21 —0 +1 +8 —6 +2 —1 —12 —9 — 35 +9 — 24 D e b it s t o I n d iv id u a l D e m a n d D e p o s it A c c o u n t s (In Thousands of Dollars) Percent Change Apr. 1956 Mar. 1956 Apr. 1955 34,462 628,720 22,475 26,767 247.890 120,345 40,012 38,815 690,082 24,097 28,581 235,422 123,600 40,462 32,820 486,628 20,049 27,484 192,802 118,121 36,316 621,500 616,873 975,885 125.484 70,071 133,032 259,931 93,551 651,018 654,598 1,018,803 137,313 75,431 143,107 277,567 100,719 503,570 549,930 869,373 121,579 63,381 136,007 241,797 94,959 . . 48,373 1,483,870 86,628 16,035 92,499 6,735 41,898 14,335 100,599 12,943 37,562 134,911 21,861 53,137 1,548,630 98,963 17,412 101,716 6,833 44,310 16,539 104,464 14,786 39,857 155,709 24,104 48,257 1,355,451 93,326 13,576 90,305 5,126 36,084 13,885 99,172 13,284 36,359 131,581 21.375 . . . . 55.394 158,895 68,351 1,081,001 57,285 153,960 75,673 1,223,887 50,726 149,797 68,027 1,027,713 . 26,926 186,839 32,379 16,422 28,312 203.220 34,023 16,618 24,032 181,814 30,016 16,518 32,633 267,700 34,206 61,509 153,478 526,814 35,707 262.688 367490 73,161 158,253 544,082 30,227 233,029 31,727 59,540 162.208 4767079 7,430,809 7,906,106 6,734,854 176,760,000 189,793,000 158,289,000 ALABAMA Anniston . . . . Birmingham . . . Gadsden . . . . Montgomery . . . Tuscaloosa* . . . FLORIDA Jacksonville . . . M ia m i................. Greater Miami* . Pensacola . . . . St. Petersburg . . West Palm Beach* GEORGIA Albany . . . . Augusta . . Brunswick. . Columbus . . Elberton . . Gainesville* . Griffin* . . Macon . . . . Savannah . . Valdosta . . LOUISIANA Alexandria* . Baton Rouge. Lake Charles. New Orleans. MISSISSIPPI Hattiesburg . . . . . . . Meridian . . . Vicksburg . . . TENNESSEE Chattanooga . . Johnson City* . Kingsport* . . Knoxville . . . Nashville . . . SIXTH DISTRICT 32 Cities . . . UNITED STATES 345 Cities . . Apr. 1956 from Mar. Apr. 1956 1955 —11 —9 —7 —6 +5 —3 —1 —5 —6 —4 —9 —7 —7 —6 —12 —6 — 13 —9 —3 +3 —10 —12 —2 +6 +7 +13 + 10 +2 +31 + 16 +3 +7 + 10 —1 +21 +9 +36 +23 +1 +10 +6 —3 +3 +3 +7 + 11 +2 + 12 +9 + 19 +4 +14 +6 +0 +8 +5 +8 —5 +12 —8 +3 —5 + 18 + 10 + 12 —1 +8 —1 —9 +8 +2 —6 +11 +15 — 16 —3 —3 +3 —5 + 11 + 13 + 11 +9 —4 +9 —6 +10 +11 —7 + 12 + 10 *Not included in Sixth District totals. 7 +8 + 14 + 13 + 13 +7 + 18 +0 +9 —7 +18 —5 — 13 —4 + 15 +32 + 18 +23 + 12 + 12 +3 + 11 —9 —4 —1 from 1955 + 20 +5 + 11 —1 —9 1956 +2 + 10 —7 —12 —8 • +5 +29 + 12 —3 +29 4 Months • +8 +2 S ix th D is tr ic t 1 9 4 7 -4 9 SEASONALLY ADJUSTED District T o t a l................................ . Alabama............................................, F l o r i d a .......................................... . G e o rg ia .......................................... , L o u is ia n a ................................ . M ississippi................................. . T e n n e sse e ................................ . UNADJUSTED District T o t a l................................ . Alabama....................................... . F l o r i d a ...................................... G e o rg ia ...................................... . L o u is ia n a ................................ . M ississippi................................. . Tennessee ................................ . = I n d e x e s 100 N o n fa rm M a n u f a c t u r in g M a n u f a c t u r in g C o n s t r u c t io n F u r n it u r e E m p lo y m e n t E m p lo y m e n t P a y r o lls C o n tra c ts S to re S a le s * / * * Mar. 1956 Feb. 1956 Mar. 1955 Mar. 1956 Feb. 1956 Mar. 1955 Mar. 1956 . 127 . 116 . 149 . 127 . 12 1 . 12 1 . 120 127 116 148 127 122 r 113r 141r 123r 117r 120 r 117r 117 108 147 119r 108 146 123 112 104 146r 120 r lO lr 119r 113r 178 168 215 185 164 197 179 175r 161 . . 126 115 155 126 119r 119 119 113 106r 149r 120 r 99r 119r 114r 180 168 230 185 159 191 179 127 116 . 126 . 120 . 120 . 119 12 1 122 120 122 99 12 1 101 117 123 118 118 119r 123r 112r 148r 110 110 153 122 122 115r 119r 116r 97 156 123 98 120 12 1 117 118 _ Unadjusted April March 1956 1956 136 146 132 142 112 128r 116 127 118 132 109 112 112 120 135 144 125 140 117 130 126 141 150 161 124 127 172 169 April 1955 141 145 113r 122 133 115 126 149 139 130 127 146r 124 155r 1 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, however, are not used in computing the District index. *For Sixth District area only. Other totals for entire six states. **D aily average basis. Sources: Nonfarm and 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, turnover of dem. dep., FRB Atlanta; petrol, prod., U. S. Bureau of Mines; elec. power prod., Fed. Power Comm. Indexes calculated by this Bank. • R e se rv e Bank C itie s Branch Bank C i t ;es ■■ D istric t Boun dar'ez — Branch T e rrito ry Boundaries B o a r d o f G o v e r n o r s o f th e F e d e r a l R e s e rv e S ys te m Apr. 1956 Mar. 1956 Apr. 1955 Apr. 1956 183 159r 184 180r 163r 148r 195r 170r 152r 185r 165r 115p 109 119 126p 176 161 225 185 152 r 181r 178r 164r 148r 209r 170r 148 r 180r 165r 210 265 353 243 469 170 154 Apr. _________________________________________1956 Construction c o n tra c ts*................................ Residential...................................................... Other ................................................................ Petrol, prod, in Coastal Louisiana and Mississippi** . . 167 Cotton consum ption**......................n.a. Furniture store sto ck s*......................l l l p Turnover of demand deposits* . . 21.1 10 leading c itie s ............................... 23.3 Outside 10 leading cities . . . 17.4 Mar. 1956 Elec. power prod., t o t a l* * .......................... Mfg. emp. by type A p p a re l................................................. 161 C h e m ic a ls ........................................... 131 Fabricated m e t a ls ........................... 148 F o o d ...................................................... 112 Lbr., wood prod., furn. & fix. . . 83 Paper and allied prod..................... 158 Primary m e ta ls................................ 104 T e x t ile s ................................................. 94 Trans, equip............................................ 182 r Revised O Mar. 1955 279 330 396 334 258 250 577 271 317 398 266 186 Mar. 1956 Apr. 1955 112 120 104 114 107 113 116r 90 83 92 lO lp 98 109 92r 99 95 99 98r 102 81 70 83 10 1 104 112 p 109 115 116 112 10 1 100 104 O t h e r D is t r ic t In d e x e s _____________ D e p a r t m e n t S t o r e S a l e s a n d S t o c k s * * ______________ __________Adjusted_________ April March April 1956 1956 1955 D ISTRIC T S A L E S * ...................... 144 143 142 Atlanta 1 ...................................... 154 140 153r Baton R o u g e ........................... 121 124r 109r Birmingham................................. 129 126 126 134 131r Chattanooga................................ 126 J a c k s o n ......................................116 lllr 113r Jacksonville................................ 122 121 126r Knoxville....................................... 141 148 142r Macon............................................. 154 133 144r N ash ville...................................... 121 133 124 New Orleans................................. 132 138 126 St. Ptrsbg-Tampa Area . . 152 151 142r Tampa............................................ 127 126 122r D ISTRIC T STOCKS* . . . . 165 162 149r Feb. 1956 p Preliminary Adjusted Mar. Apr. 1956 1955 168 96 114r 21.0 22.1 17.7 Feb. 1956 145r lO lr 109 20.7 22.4 18.5 Mar. 1955 164 129 151 113 157r 129r 145r lllr 83r 151r lOOr 95r 169r 86 157 108 97 184r n.a. Not available Apr. 1956 301 326 282 Unadjusted Mar. Apr. 1956 1955 331 326 317 283 341 359 147r 170 168 n.a. 10 1 103 118p 115r 116 21.2 21.3 20.9 22.7 22.7 21.8 17.4 18.5 17.3 Mar. Feb. Mar. 1956 1956 1955 280 297 236 160 134 152 162 131 154 110 112 84 158 105 95 189 85 158 109 96 189r 157r 132r 149r llO r 84r 151r lO lr 95r 176r
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