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■ I ?'k. \\* 6 A I S issiALAr J< j 171 Atlanta, Georgia November • Monfhlu Review From Panic to Prosperity 1964 T h e S o u t h ’s E c o n o m y a n d t h e F e d e r a l R e s e r v e A ls o in t h is is s u e : SIXTH DISTRICT STATISTICS DISTRICT BUSINESS CONDITIONS The opening of the Federal Reserve Bank of Atlanta on November 16, 1914, unlike the inauguration of most other banking ventures at that time, was attended by a great deal of publicity, both in Atlanta and throughout the region. This institution, representing an entirely new concept of banking in the United States, brought new hope to southern farmers, businessmen, and bankers who suffered from the frequent fi nancial panics that had become characteristic of the American economy. Recurring Panics Gripped the Nation The success or failure of a bank in rural Alabama in the opening years of the twentieth century might very well have depended upon what the citizens of New York thought of a copper mine in Montana. Such a relationship may seem a bit far-fetched in the present era in which few banks fail and usually those that do are the victims of poor manage ment or drastic changes in local economic conditions. Back in the 1800’s and in the early years of this century, however, large numbers of banks might suspend operations at one time, often as the result of events hundreds of miles away and completely beyond local control. The nature of the American financial system as it had evolved under the National Banking Act of 1864 was largely responsible for these conditions. The Act required all Federally chartered country banks to maintain a 15-percent cash reserve against deposits, but it permitted them to keep up to three-fifths of this amount at banks in certain designated reserve cities. Banks located in the forty-seven reserve cities had to keep a 25-percent cash reserve, half of which could be deposited in banks in the three central reserve cities. Most state banking laws also permitted state chartered banks to keep some portion of their reserves in large city banks. As financial resources became more and more concentrated, the proportion of business transactions that took place in these cities increased substantially. Accordingly, banks throughout the country found it necessary to keep more of their deposits as reserves in the large city banks to accommodate the needs of their customers who dealt with businesses in these cities. By 1907, half the reserves of national banks were deposited in reserve city banks, and almost one-third of this amount was held by New York City banks alone. This arrangement was profitable for the country banks, for it allowed them to discharge a large portion of their check clearing obligations without frequent, costly currency shipments; at the same time, it satisfied part of their reserve requirements. The reserve city banks also gained, for they were provided with additional funds with which to make loans and investments. Such a system was also a source of trouble. The southern banks, for example, had widely fluctuating currency needs, depending largely upon the time of year in which crops were planted, harvested, and marketed. Thus, each fall they would draw down their balances at the northern reserve city banks to help finance the cotton crop, forcing Then . . . The Federal Reserve Bank of Atlanta was the smallest of the twelve regional reserve banks opened in the fall of 1914. On December 31 of that year, it held the following proportions of the Federal Reserve System’s assets and liabilities: 1 .4 % o f the gold. 2.1 % o f to ta l cash assets. 2 . 4 % o f the reserves o f m e m b e r banks. 1 1 .5 % of the Federal Reserve notes issued. 2 . 7 % of to ta l resources. A t the same time, the national banks in the six states served by the Atlanta Reserve Bank accounted for: 4.1 % o f the loans and 3 .3 % o f the deposits of a ll n a tio n a l banks. T h e F e d e r a l R e s e r v e B a n k o f A t l a n t a o p e n e d in o ffic e s o n t h e s e c o n d f lo o r o f t h is b u i ld in g , t h e l a r g e s t in t h e S o u t h in 1 9 1 4 . those banks to liquidate some of their earning assets. In addition to these seasonal drains, any event that affected the confidence of a number of people could cause a run on banks in various parts of the country, which would quickly lead to withdrawals from the central reserve city banks. The latter then might be forced to suspend cur rency payments to maintain their own cash reserves. The resulting withdrawal of currency from circulation could bring a halt to trade and a general economic break down. Recurring crises or panics of this nature became a characteristic feature of the American scene. Especially sharp contractions occurred in 1873,1884,1893, and 1907. The 1907 panic is particularly interesting because it occurred in the midst of a period of relative prosperity, thus illustrating the vulnerability of the banking system and the entire economy to what would today appear to be a very minor disturbance. The New York banks held cash reserves well above the minimum required by law, although somewhat below the level proved to be necessary in times of crisis. At the same time, however, they had become reserve depositories for many state banks and trust companies, both of which maintained cash reserves below what was considered a prudent level. Thus, the cash needs of the reserve city banks were substantially greater than they had been in the past. The events leading to the crisis were certainly in significant enough. A brother of two men involved in speculation in Montana copper properties became presi dent of a small New York bank. Many depositors with drew their funds from the bank, forcing it to reorganize under new management. Meanwhile, the activities of one of the bank’s directors, who also had interests in a number of other banks, came under suspicion. The banks in his chain suffered heavy deposit withdrawals, as did a large trust company whose president was an associate of the man in question. The New York Clearing House failed to come to the aid of any of the state chartered asso ciations involved, and the crisis quickly spread throughout the country as depositors became frightened and country bankers no longer felt that their funds were safe in the New York banks. Currency payments were halted at most major clearing houses, and bank holidays were declared in several states. In Atlanta, for example, the clearing house issued loan certificates in lieu of cash from October 31, 1907, to January 16,1908, and the banks limited cash withdrawals of customers to $100 a week. Factors other than the concentration of bank reserves contributed to this crisis, as well as others, of course. The majority of the banks were too small to provide the sole source of income for management, and officers and directors usually had other interests. At times, these activities interfered with the normal operations of some of the banks and, occasionally, these banks would be called on to finance questionable ventures of their owners. Recurring failures brought on by injudicious management and currency crises resulted in a general lack of public confidence in the banking system. The crisis of 1907, which probably could have been averted with a little cooperation among bankers, intensi fied an already vocal demand for reform. Congress launched a five-year study of the entire banking system . 2 . that culminated in the passage of the Federal Reserve Act in late 1913. Among other things, this legislation provided for a regional pooling of bank reserves at des ignated Federal Reserve cities, as well as inter-regional flows of such reserves. Under the then existing system, the cash resources of the reserve city banks had proved inadequate in times of crisis since they had to provide for their own liquidity. One of the purposes of the new Reserve System, therefore, was to provide a last resort source of funds for individual banks in times of special need. At the same time, the Act permitted the nation’s currency to fluctuate with the normal seasonal needs of business throughout the country. Removing the need to depend upon the great financial centers, it was hoped, would lead to a more balanced development of the entire United States. Several southern cities competed vigorously for the regional bank, and the Federal Reserve Organizational Committee held meetings and hearings in a number of them. Atlanta was finally chosen as the site of the Federal Reserve Bank for the deep South because of its central location, superior transportation facilities, and its position as regional headquarters for many national concerns. Atlantans, of course, were pleased to obtain the Bank, but the entire region expected to profit from the facilities provided by the institution. The six states that were located entirely or partly in the newly created Sixth Federal Reserve District— Alabama, Florida, Georgia, Louisiana, Mississippi, and Tennessee— constituted one of the most economically backward areas of the United States. An arrangement that promised to provide an elastic currency and, at the same time, free funds for investment was bound to be of tremendous benefit. T h e S o u th W a s U n d e r d e v e lo p e d What was this part of the South like fifty years ago? First and foremost, a major part of the population lived on farms and in small towns. Despite a 50-percent in crease during the previous decade in the number of those living in towns with over 2,500 people, only 20 percent of the population was classified as urban in 1910, com pared with a 50-percent ratio for the rest of the nation. New Orleans, with a third of a million people, was by far the largest city in the six-state area. Atlanta, Memphis, and Birmingham all had less than half as many people as New Orleans, and Nashville, the only other large city, was about a third as big. Key West was the only city with over 6,000 people south of Tampa. The population, then, was widely scattered. Social and economic activity was centered in the 495 county seats, each of which contained an average population of a little over twenty thousand. Although the area was served by a good network of railroads, communication between these towns was limited. There were thirty-four telephones for each thousand inhabitants— about one-third the na tional average— and these were installed only in the larger towns. Residents of the six states had fifty-two thousand registered motor vehicles, but most of them had no place to go. Improved roads were a thing of the future, and total state expenditures for roads in the region were less than $400,000 in 1914. Lack of good communications . . . Now By 1964, the Federal Reserve Bank of Atlanta was the sixth largest in the System. On June 30, its holdings of the Federal Reserve System’s assets and liabilities had changed to the following proportions: 5 .6 % of the gold certificates. 5 .4 % o f U. S. G o ve rn m en t securities. 5 .4 % of m em b er b a n k reserve accounts. 5 .7 % o f the o utstand in g Federal Reserve nales. 5 .9 % o f to ta l resources. A t the same time, member banks in the six D istrict states accounted fo r: 5 .9 % o f the loans and 6.5 % of the deposits of a ll m em b er banks. In 1964, the B an k m oved into its n e w q u a rte rs , w h ich occupy a lm o st an e n tire b lo ck in do w nto w n A tla n ta . • 3 • Then . . . When the Federal Reserve Bank of Atlanta opened in 1914, the six-state region it served contained the following proportions of the economic assets and liabilities of the United States: 12.1 % of to ta l p o p ula tio n. 5 .3 % o f the city d w e lle rs. 1 4 .1 % o f school-age p o p u la tio n , b ut o n ly 1 1 .9 % of those a tte n d in g school, and 3 0 .5 % of the n atio n 's illite ra te s . 3 1 .6 % of the persons em p lo ye d on farm s, w h o w o rk e d on 1 9 .6 % of the farm s, w hic h accounted fo r o n ly 5 .9 % of the v a lu e of fa rm lands an d eq uipm en t, 1 3 .7 % of the v a lu e of crops produced, 3 .7 % of the receipts fro m sales of a n im a ls , and 3 .2 % of the v a lu e o f livestock products. 7 .5 % o f the nation's m a n u fa c tu rin g establishm ents. 6 .6 % of th e fa c to ry w o rke rs, w h o earned 4 .8 % of w ag e s and created 4 .7 % o f the v a lu e ad ded b y m anufacture. Courtesy of Atlanta Historical Society. The South w a s p re d o m in a n tly r u r a l, a n d m ost of th e cities lo o k ed m o re lik e o v e rg ro w n tow ns th a n fu tu re m e tro p o lita n ce n te rs. facilities, both a cause and effect of low incomes, pre cluded cooperative effort to hasten economic develop ment. It also prevented the quick and accurate trans mission of information necessary for the smooth function ing of the economy. The location of the population was reflected in the occupational structure of the six-state area. Out of a work force of almost five million people, over 60 percent were engaged directly in farming and forestry, while less than 13 percent worked in factories. This contrasted sharply with the remainder of the nation, where each of these categories employed about 30 percent of the labor force. The region’s farms, which provided the major source of income in each of the six states, were, on an average, much poorer than those in the rest of the country. The typical farm property, including land, buildings, machin ery, and livestock, was worth less than $2,000 in 1909, or about one-fourth that of the rest of the nation and one-third of the value achieved in this area in 1860. The receipts from the sale of animals and livestock products plus the value of all crops produced averaged $670 per farm, compared with $1,370 in the remaining states. Such sharp differences resulted from a number of factors: The farms in this area were about 60 percent as large as those in the rest of the nation; a smaller proportion of the land on each farm was improved; less of the improved land was planted in crops; and the income from sales of animals and livestock products was only a small portion of the total, while it amounted to half the value of crops in the rest of the country. The plight of the factory worker in the deep South was probably no better than that of his agrarian cousins. Most production workers averaged close to sixty hours a week on the job, or five to ten hours longer than workers in the North and West. Despite more time spent at work, however, the typical southern wage earner made only $380 per year, compared with $530 elsewhere in the nation. The value of the products he turned out was less than two-thirds that of the remainder of the country. Children constituted a larger part of the work force and women a smaller proportion than in other parts of the United States. This part of the South, then, found itself in a sort of vicious circle of underdevelopment. Incomes were low; consequently, savings were low. The highly seasonal nature of production meant that funds needed for invest ment had to remain idle to accommodate currency needs in the fall and spring, while the low market potential and the lack of an educated labor force in the region discouraged the inflow of funds from other areas. Such were the broad economic characteristics of the states to be served by the new Federal Reserve Bank of Atlanta. During the summer of 1914, some of the more undesirable aspects of these qualities were brought to the fore. Over six and a half million bales of cotton had been produced in the six-state region, a substantial increase over 1913’s yield, which was a near record. At the same time, war had broken out in Europe, the cotton industry’s principal market, and naval blockades halted shipments to many countries. The fiber began to pile up, . 4 . and the price dropped steadily from around thirteen cents to a little over five cents a pound. Farmers were unable to repay their bank loans, bankers were unable to obtain funds to finance other business, and trade in general was paralyzed. . . • Now Fifty years later, the states in this region had increased their share of almost all the important economic variables: F e d e r a l R e s e r v e P r o m i s e d R e l ie f The cotton crisis was one of the reasons the Federal Reserve Board decided to open the regional banks in late 1914, rather than at a later date as was originally intended. The Board was instrumental in the creation and successful implementation of the cotton loan fund, whereby banks in New York and other clearing house cities outside the cotton-producing areas pledged $100 million for long-term loans on cotton. This action, coupled with the opening of the Federal Reserve Banks, which released millions of dollars worth of reserves to back up new short-term loans, went a long way toward restoring confidence and averting a more serious crisis. The apparent need for a Federal Reserve Bank in the South was illustrated quite vividly during the Bank’s first year of operation. In the thirteen and one-half months ending on December 31, 1915, the Federal Reserve Bank of Atlanta, which held less than 3 percent of the resources of the entire System, discounted over $35 million worth of commercial paper for member banks, or almost 20 percent of the total for all Federal Reserve Banks. As many as half the member banks were accommodated at one time. And, as early as October 1915, the Atlanta Bank was able to report in the Federal Reserve Bulletin that: The bright outlook in the cotton market, marked by the rapid and continued advance in the price of cotton, is the most important factor in the business situation in the Sixth District. The knowledge that the Federal Reserve System is now thoroughly or ganized and in position to render efficient aid to the agricultural, commercial and industrial life of this section has had a marked effect in restoring con fidence. The Federal Reserve System, the Federal Reserve Bank of Atlanta, and the region that it serves have undergone important changes during the past fifty years. The original assumption underlying the rediscount mechanism, that credit flows would be automatically regulated by prices and international gold movements, was abandoned in the light of experience. The Reserve System thus moved from a position of passively rediscounting commercial paper to one of actively striving through open market operations and other techniques to influence the volume of available credit. In addition to its original goal of providing an elastic currency, the System has also sought to provide a financial climate conducive to prosperity and high employment of the nation’s resources. At the same time, its original function as a lender of last resort in times of great need remains intact, although it is seldom called upon for this purpose. As the functions of the Reserve System changed and its duties expanded, the Federal Reserve Bank of Atlanta increased its range of responsibility. Branches were estab lished in New Orleans in 1915, in Jacksonville and Birmingham in 1918, and in Nashville in 1919. From a 1 1 .8 % of to ta l p o p ulatio n. 9 .9 % of the u rb a n p o p ula tio n. 1 2 .7 % of the school-age p o p ulatio n. 1 2 .3 % of those a tte n d in g school. 1 6 .2 % of the nation's fa rm em ploym ent. 1 7 .2 % of the farm s, w hic h accounted fo r 8 .7 % of the v a lu e of la n d and b uild in g s. 1 0 .2 % of the v a lu e o f fa rm products. 8 .7 % of the m a n u fa c tu rin g establishm ents. 8 .6 % of the production w o rke rs, w h o e arn e d 6 .8 % o f fa c to ry w ag e s and created 7 .0 % of the v a lu e added b y m anufacture. Courtesy of Atlanta Chamber of Commerce. S k y sc ra p e rs dot the so uthern la n d sc a p e in 1964, a s an in crea sin g ly g r e a te r p a rt of the p o p u latio n is d ra w n to th e econom ic o p p o rtu n itie s p ro vid ed b y th e u rb an ce n ters. • 5 • single office employing fourteen persons primarily con cerned with rediscounting the commercial paper of mem ber banks, the Atlanta Bank has grown to a five-office operation with over 1,350 employees engaged in check clearing, maintaining U. S. Treasury accounts, issuing and redeeming U. S. Government securities, bank supervision and examination, economic research, supplying currency and coin, and many other tasks that contribute to the smooth functioning of the region’s economy. The opera tions of this and the eleven other Federal Reserve Banks and the safeguards inherent in the decentralized process of monetary policy formulation have justified the controversial concept of a regional central reserve banking system. The six-state area served by the Federal Reserve Bank of Atlanta has not yet achieved a level of income equal to the average of the rest of the nation. In 1914, the gap was widening, and the prospects for future growth appeared to be quite dim. In 1964, however, the differ ences were narrowing, and the region was recognized as one of the major growth areas in the United States. Many factors have been responsible for these changes, but it is doubtful that they would have occurred in the absence of the monetary stability provided by the Federal Reserve System. _r J R o b e r t M. Y o u n g Bank Announcements On O ctober 8, the F i r s t S t a t e B a n k o f S t o c k b r i d g e , Stockbridge, G eorgia, a n ew ly organ ized n on m em ber bank, open ed fo r business and began to rem it at par fo r ch ecks draw n on it w hen received fro m the F ederal R eserve Bank. Officers are J. T. M ays, P resident; V irlyn Slaton, C hair m an o f the B oard; an d P aul B. C hristenbury, E xecu tive V ice P resident an d Cashier. C apital is $ 1 0 0 ,0 0 0 , an d su r plu s and u n divided profits, $ 1 0 0 ,0 0 0 . The B a l d w i n N a t i o n a l B a n k o f R o b e r t s d a l e , R obertsdale, A labam a, a con version o f the C en tral B ald win B ank, a n on m em ber State bank, o p en ed fo r business on O cto b er 13 as a national bank. Officers include M . W. B aldw in, President; R o b e rt I. G ulledge, E xecu tive V ice P resident; Jam es W. C ooper, V ice P residen t a n d Cashier; and T. W. M itch ell, V ice P resident. C apital is $ 1 0 0 ,0 0 0 , and surplus and u n divid ed profits, $ 2 9 7 ,9 1 6 , as re p o rted by the C o m p tro ller o f C u rren cy at the tim e o f the conversion. On O cto b er 26, the U n i t e d N a t i o n a l B a n k , M iam i, Florida, a n ew ly organ ized m em b er bank, o p en ed fo r business and began to rem it at par. Officers are Frank Sm athers, Jr., P resident; Frank E. Peuser, S enior V ice President; R o b ert Van W esterborg, V ice P residen t and Cashier; H erb ert H . H ellm ann, V ice P resident; a n d D e n nis P. C lum , V ice P residen t an d T rust Officer. C apita l is $ 2 ,0 0 0 ,0 0 0 , an d surplus an d o th er capital funds, $ 1 ,0 0 0 ,000, as rep o rted by the C o m p tro ller o f C u rren cy at the tim e the ch arter w as granted. The P e o p l e s N a t i o n a l B a n k o f B a y H a r b o r I s l a n d s , B ay H arbor Islands, F lorida, a n ew ly organ ized m em b er bank, open ed fo r business on O cto b er 2 8 an d began to re m it a t par. Officers include L eo n a rd Usina, C hairm an o f the B oard; F rank H . W ilier, V ice C hairm an; M o rris N . Broad, P resident; C arl E. B ow dre, E x ecu tive V ice P resi dent; and R o la n d M . Stafford, V ice P residen t and Cashier. C apital is $2 6 0 ,0 0 0 , an d surplus an d o th er capital funds, $1 6 0 ,0 0 0 , as rep o rted by the C o m p tro ller o f C u rren cy at the tim e the charter w as granted. Debits to Demand Deposit Accounts In su re d C o m m e rcia l B a n k s in th e S ix th D istrict (In Thousands of Dollars) Percent Change Year-to-date 9 Months Sept. 1964 from 1964 Aug. Sept. from Sept. 1964 1963 1963 1963 Sept. 1964 Aug. 1964 STANDARD METROPOLITAN STATISTICAL AREAS+ Birminqham . . . 1.171.211 57,460 Gadsden . . . . 150,966 Huntsville . . . 395,025 Mobile . . . . 256,148 Montgomery . . . 76,359 Tuscaloosa . . . 1,156,865 58,615 140,020 382,801 257,416 70,256 1,009,280 52,032 128,221 365,002 226,733 66,051 +1 —2 +8 +3 —1 +9 + 16 + 10 + 18 +8 + 13 + 16 + 11 + 10 + 20 +8 +6 +9 Ft. LauderdaleHollywood . . Jacksonville . . . M iami.................... Orlando . . . . Pensacola . . . 372,235 1,091,668 1,561,667 395,235 162,893 344,432 1,110,151 1,412,151 404,379 152,815 326,393 995,542 1,383,282 380,747 129,015 +8 —2 + 11 —2 +7 + 14 + 10 +13 +4 +26 + 12 + 14 +7 + 10 +14 St. Petersburg . W. Palm Beach . . 966,134 265,979 919,406 250,866 860,206 241,391 + 12 + 10 +9 + 10 + 21 +9 + 11 + 23 + 11 +7 + 11 +6 +9 + 19 +9 + 10 Tampa- Albany Atlanta Augusta* Columbus Macon Savannah . . . . . . . . . . . . . . . . . . . . . . Baton Rouge Lafayette . Lake Charles New Orleans . . . . . . . . . 80,230 3,499,002 155,258 191,284 181,296 204,922 64,478 3,271,513 163,019 182,961 170,180r 200,493 66,512 3,209,169 139,571 155,202 163,532 191,402 +5 +6 + 24 +7 —5 +5 +7 +2 371,512 82,898 97,143 1,873,596 349,877 84,050 89,370 1,754,823 342,097 72,557 93,689 1,587,034 +6 —1 +9 +7 +9 + 14 +4 + 18 +6 +9 +3 + 11 448,330 426,483 398,105 +5 + 13 + 12 Chattanooga . . Knoxville . . . . Nashville . . . . 425,798 362,027 1,085,339 408,006 356,719 1,060,660 388,560 345,950 1,028,540 +4 +2 +2 + 10 +5 +6 +9 +7 + 12 OTHER CENTERS Anniston . . . . Dothan . . . . S elm a.................... 53,606 52,255 37,096 49,799 43,888 31,946 49,099 48,698 34,551 +8 +19 + 16 +9 +7 +7 +6 +7 + 12 25,183 40,650 148,519 63,232 20,993 40,398 152,193 65,952 20,554 39,962 133,391 67,149 + 20 +1 —2 -4 + 23 +2 + 11 —6 + 13 +4 + 26 +6 . 52,116 65,130 18,042 90,724 42,905 14,750 233,460 73,477 87,977 506,533 44,164 48,999 59,958 17,829 81,340 41,433 15,590 222,870 69,046 88,466 489,604 43,556 48,599 56,710 16,601 78,628 39,904 14,360 210.068 72,883 76,136 452,402 41,534 +6 +9 + 1 + 12 +4 —5 +5 +6 —1 +3 +1 +7 + 14 + 10 +5 +5 +4 +8 +4 +12 +9 +14 Athens . . . . Brunswick . . . Dalton . . . . Elberton . . . . Gainesville . . . Griffin . . . . LaGrange . . . Newnan . . . . R o m e .................... Valdosta . . . . 53,776 37,183 79,472 11,934 61,617 26,727 18,547 25,913 57,555 43,090 51,234 36,908 71,323 10,567 60,761 25,112 17,615 23,050 55,079 47,543 46,122 32,918 71,629 9,613 56,577 23,437 16,542 20,374 55,560 37,349 +5 +1 + 11 +13 +1 +6 +5 +12 +4 —9 +7 + 15 +9 + 15 +8 +3 +11 +1 + 16 +12 +6 +17 + 13 +11 +24 +9 + 14 +12 + 27 +4 + 15 Abbeville . Alexandria Bunkie . Hammond New Iberia Plaquemine Thibodaux 10,779 96,524 5,273 28,128 28,918 7,399 17,484 7,560 97,894 4,535 25,314 27,148 7,853 15,730 9,110 84,587 5,287 22,590 26,734 6,831 20,947 + 43 —1 + 16 + 11 +7 —6 + 11 +18 +14 —0 + 25 +8 +8 — 17 +7 +11 +2 +9 + 17 + 15 +9 70,707 41,268 30,747 53,416 31,217 70,593 41,955 31,089 53,456 29,216 70,402 39,555 29,775 53,039 27,850 +0 —2 —1 —0 +7 +0 +4 +3 4*1 + 12 +5 +6 +8 +3 + 11 39,054 31,433 20,228 56,807 Bristol . . . . Johnson City . . 59,681 Kingsport . . . 106,753 SIXTH DISTRICT, Total 22,556,984 46,675 30,365 43,612 38,369 27,526 19,030 — 16 +4 — 54 +2 + 14 +6 53,801 56,195 105,530 53,657 51,033 96,916 +6 +6 +1 +5 +6 +17 + 10 + 10 + 13 +12 —1 + 13 +13 +10 +9 +3 +5 +6 +6 —1 +3 +7 + 15 + 10 +9 + 15 +9 +3 + 10 + 11 +9 +7 + 10 + 10 +9 + 11 Jackson . . . . Bartow . . . . Bradenton . . Brevard County Daytona Beach . Ft. MyersN. Ft. Myers Gainesville . . Key West . . Lakeland . . . . St. Augustine . St. Petersburg . Sarasota . . . . Tallahassee . . Tampa . . . . Winter Haven . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Biloxi-Gulfport . Hattiesburg . . Laurel . . . . Meridian . . . . Natchez . . . . PascagoulaMoss Point . Vicksburg . . Yazoo City . . Alabamaf . . Floridaf . . . . Georgiat . . . . Louisianaf** . Mississippi** . Tennesseef** . U.S., 344 Cities . . . . . . . . . . . •Richmond County only. fPartially estimated. 21,578,547r 20,482,015 3,081,932 3.165,144 2,752,301 5,981,904 6,559,777 6,265,308 5,440,364r 5 300 606 5,788,547 2,772,594 3,193,732 3,007,281 1,047,897 1,037,418 949,256 2,725,354 2,735,765 2,812,366 340,900,000 319,400,OOOr 310,400,000 + 11 +9 + 20 + 12 +7 +10 + 12 + 10 + 11 +12 **Includes only banks in the Sixth District portion of the state. r Revised. •6 • Sixth D istrict Statistics Seasonally Adjusted (All data are indexes, 1957-59 = Latest Month (1964) One Month Ago Two Months Ago One Year Ago SIXTH DISTRICT INCOME AND SPENDING Personal Income, (Mil. $, Annual Rate) . . Manufacturing P a y r o lls .............................. Farm Cash R e c e ip t s ................................... C r o p s ....................................................... Livestock.................................................. Department Store S a l e s * / * * .................... Instalment Credit at Banks, *(Mil. $) New Loans.................................................. Repayments............................................. PRODUCTION AND EMPLOYMENT Nonfarm Employment................................... Manufacturing................................... Apparel ............................................. Chemicals............................................. Fabricated M e t a ls .............................. Food .................................................. Lbr., Wood Prod., Furn. & Fix. . . . P a p e r .................................................. Primary M e t a ls ................................... Textiles ............................................. Transportation Equipment . . . . Nonmanufacturing................................... Construction........................................ Farm Employment........................................ Insured Unemployment, (Percentof Cov. Emp.) Avg. Weekly Hrs. in Mfg., (Hrs.) . . . . Construction Contracts*.............................. R e s id e n tia l............................................. All O t h e r .................................................. Industrial Use of Electric Power . . . . Cotton Consum ption**.............................. Petrol. Prod, in Coastal La. and Miss.** Aug. 44,745 Sept. 146 Aug. 123 Aug. 141 115 Oct. 139p 44,620r 43,537r 41,750 146r 144 138 115 110 128 99 101 144 121 113 117 136 121 143 Sept. Sept. 178 183 174 190 191 183 163 173 Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. Sept. 117 115 136 112 123 108 93 111 105 95 131 117 107 75 2.8 40.6 153 146 160 119 107 180 116 114 136 111 120 107 92 109 103 95 121 117 107 78 2.9 41.1 129 145 116 121 110 174 116 114 136 112 120 106 94 110 103 96 126 117 107 85 2.9 40.7 174 173 174 126 113 170r 113 112 132 109 115 106 93 108 102 94 121 114 101 85 3.5 41.1 145 145 144 116 103 163 Sept. Oct. 183 170 180 170 177 166 158 154 Sept. Oct. Sept. 148 136 152 144 140 153r 143 136 145 135 125 146 Sept. Sept. Sept. Sept. Sept. One Month Ago Two Months Ago Aug. 8,398 Sept. 147 Aug. 131 Sept. 130 8,347r 142r 102 139 8,217r 143 116 123 7,956 136 126 125 118 114 120 126 75 2.4 40.1 117 111 120 129r 83 2.6 40.8r 118 113 120 130 88 2.2 40.3 115 110 117 121 96 3.0 40.0 183 154 165 183 148 163 One Year Ago INCOME AND SPENDING Personal Income, (Mil. $, Annual Rate) . . Manufacturing P a y r o lls .............................. Farm Cash R e c e ip t s ................................... Department Store S a l e s * * ......................... PRODUCTION AND EMPLOYMENT Nonfarm Employment................................... Sept. Sept. Nonmanufacturing................................... Sept. Construction........................................ Sept. Farm Employment........................................ Sept. Insured Unemployment, (Percentof Cov. Emp.) Sept. Sept. Avg. Weekly Hrs. in Mfg., (Hrs.) . . . . FINANCE AND BANKING Member Bank L o a n s ................................... Member Bank D e p o s it s .............................. Bank D e b it s * * ............................................. 182 149 159r 164 137 160 6,474r 129 113 125 6,375r 127 110 118 6,156 125 158 112 105 102 106 90 80 3.0 42.1 104 lO lr 105 90 89 3.3 41.7 104 100 105 89 88 3.4 41.4 103 99 104 83 81 3.8 42.9 167 134 139 162 129 141 164 127 133 145 122 127 3,369r 157 121 108 3,372r 156 131 93 119 123 117 123 61 3.3 40.5 119 123 117 120 67 3.4 40.3r 118 122 117 117 80 3.4 40.8 116 118 116 119 66 4.5 40.8 202 159 159 198 156 166 190 157 147 177 147 154 Aug. 7,226 Sept. 146 109 Aug. 118 Sept. 7,236r 146r 113 122 7,080r 144 112 110 6,689 138 114 115 117 119 116 139 80 3.2 40.5 117 120r 115r 139 83 3.3 40.7r 117 119 116 140 86 3.4 40.8 113 116 111 130 93 4.0 41.3 187 152 156 185 148 152 174 142 145 161 135 160 Sept. Sept. Sept. LOUISIANA INCOME AND SPENDING Personal Income, (Mil. $, Annual Rate) . . Manufacturing P a y r o lls .............................. Farm Cash R e c e ip t s ................................... Department Store S a l e s * / * * .................... Aug. 6,529 Sept. 133 Aug. 131 Sept. 115 PRODUCTION AND EMPLOYMENT Nonfarm Employment................................... Manufacturing........................................ Sept. Sept. Sept. Construction........................................ Sept. Sept. Insured Unemployment, (Percentof Cov. Emp.) Sept. Sept. Avg. Weekly Hrs. in Mfg., (Hrs.) . . . . FINANCE AND BANKING Member Bank L o a n s * ................................... Member Bank Deposits*.............................. Sept. Sept. Sept. MISSISSIPPI ALABAMA INCOME AND SPENDING Personal Income, (Mil. $, Annual Rate) . . Manufacturing P a y r o lls .............................. Farm Cash R e c e ip t s ................................... Department Store S a l e s * * ......................... Aug. 6,050 Sept. 135 Aug. 120 Sept. 109 PRODUCTION AND EMPLOYMENT Nonfarm Employment................................... Manufacturing........................................ Nonmanufacturing................................... Construction........................................ Farm Employment........................................ Insured Unemployment, (Percentof Cov. Emp.) Avg. Weekly Hrs. in Mfg., (Hrs.) . . . . Sept. Sept. Sept. Sept. Sept. Sept. Sept. FINANCE AND BANKING Member Bank L o a n s ................................... Member Bank D e p o s it s .............................. Bank D e b it s * * ............................................. Sept. Sept. Sept. 6,090r 133r 132 118 5,968r 129 119 111 5,747 126 133 103 109 105 111 101 74 28 41.2 109 104 111 102 69 3.0 41.5 109 105 111 102 83 3.1 40.2 107 102 109 100 82 4.1 40.8 180 149 150 176 145 158 173 144 141 157 134 138 FLORIDA INCOME AND SPENDING Personal Income, (Mil. $, Annual Rate) . . Manufacturing P a y r o lls .............................. Farm Cash R e c e ip t s ................................... Department Store S a l e s * / * * .................... Aug. 3,346 Sept. 156 Aug. 124 Sept. 96 PRODUCTION AND EMPLOYMENT Nonfarm Employment................................... Manufacturing........................................ Nonmanufacturing................................... Construction........................................ Sept. Sept. Sept. Sept. Sept. Insured Unemployment, (Percentof Cov. Emp.) Sept. Sept. Avg. Weekly Hrs. in Mfg., (Hrs.) . . . . FINANCE AND BANKING Member Bank L o a n s* ................................... Member Bank Deposits*.............................. Bank D e b it s * / * * ........................................ Sept. Sept. Sept. 3,122 147 132 96 TENNESSEE INCOME AND SPENDING Personal Income, (Mil. $, Annual Rate) . . Manufacturing P a y r o lls .............................. Farm Cash R e c e ip t s ................................... Department Store S a l e s * * ......................... Aug. 13,196 Sept. 168 122 Aug. Sept. 175 PRODUCTION AND EMPLOYMENT Nonfarm Employment................................... M anufacturing........................................ Nonmanufacturing................................... Construction........................................ Farm Employment........................................ Insured Unemployment, (Percentof Cov. Emp.) Avg. Weekly Hrs. in Mfg., (Hrs.) . . . . Sept. Sept. Sept. Sept. Sept. Sept. Sept. 127 130 127 99 91 2.6 40.3 127 130 126 98 82 2.5 41.7 126 130 125 98 94 2.6 41.5 122 126 121 92 98 2.8 41.7 FINANCE AND BANKING Member Bank L o a n s ................................... Member Bank D e p o s it s .............................. Bank D e b it s * * ............................................. Sept. Sept. Sept. 189 149 148 183 146 149 183 144 143 157 138 143 13,104r 176 113 179 12,525r 172 79 170 12,080 165 118 166 *For Sixth District area only. Other totals for entire six states. **Daily average basis, Sources: Personal income estimated by this Bank; nonfarm, mfg. and nonmfg. emp., mfg. consumption, U. S. Bureau of Census; construction contracts, F. W. Dodge Corp.; petrol, receipts and farm emp., U.S.D.A. Other indexes based on data collected by this Bank. Latest Month (1964) GEORGIA FINANCE AND BANKING All B a n k s.................................................. Leading C i t i e s ........................................ Member Bank Deposits* All B a n k s .................................................. Leading Cities ........................................ Bank D e b it s * / * * ........................................ 100, unless indicated otherwise.) INCOME AND SPENDING Personal Income, (Mil. $, Annual Rate) . . Manufacturing P a y r o lls .............................. Farm Cash R e c e ip t s ................................... Department Store S a l e s * / * * .................... PRODUCTION AND EMPLOYMENT Nonfarm Employment................................... Sept. Sept. Sept. Construction........................................ Sept. Farm Employment........................................ Sept. Insured Unemployment, (Percentof Cov. Emp.) Sept. Sept. Avg. Weekly Hrs. in Mfg., (Hrs.) . . . . FINANCE AND BANKING Member Bank L o a n s* ................................... Member Bank Deposits*.............................. Bank D e b it s * / * * ........................................ r Revised. payrolls and prod., U. S. All indexes Sept. Sept. Sept. p Preliminary. hours, and unemp., U. S. Dept, of Labor and cooperating state agencies; cotton Bureau of Mines; industrial use of elec. power, Fed. Power Comm.; farm cash calculated by this Bank. •7 • D IS T R IC T r* y ............i • ■• ............................ . — Billions ofateDollars — A nnual R Seas. Adj. B U S IN E S S C O N D IT IO N S I he District economy is still breezing along. Although harvesting activity has been hindered in some a re as by hurricanes, the ag ri cultural sector is gen erally healthy. The number of nonfarm jobs continues to increase, and insured unem ploym ent is at a low level. Member bank deposits and loans expanded further, and the con sumer is repaying his bank instalm ent debts faster than he is acquiring new ones. The construction industry is continuing to benefit from the vigorous growth of population and industry. u* u* Harvesting operations w ere ham pered by hurricanes Hilda and Isbell and by the above-average rain fall and below -average tem peratures that prevailed throughout the District. Although Hilda caused widespread damage to the Louisiana sugarcane crop, losses will not be as high as preliminary reports indicated. Damage from Isbell was largely con fined to the Everglades vegetable-producing area of Florida. While cool, damp weather in many areas has delayed maturity and caused a deterioration in the quality of some crops, total production of most crops will remain near or above last year’s level. However, prices received by farmers for crops and livestock remain well below those of a year ago. v* Additional nonmanufacturing jobs continued to boost total nonagri cultural em ploym ent in all District states in Septem ber. Losses in manu facturing curbed this gain in Florida and Tennessee, however. Manufacturing payrolls were also down in these states, as well as in Mississippi. The factory workweek was shorter in all states except Louisiana and Mississippi. Primary and fabricated metal activity has been strong, and transportation equipment employment rebounded strongly from the auto model changeover (the effect of the strike at assembly plants will show up in the October data). Insured unemployment reached its lowest level since January 1948. u* u* Industrial U s e of E lectric P o w e r Member banks registered substantial gains in both loans and de posits during September. Paced by an upturn in private demand deposits, total deposits rose at a greater rate than in any previous month during the present expansion. Lending activity was brisker than at any time since last spring, with security loans and loans to nonbank financial institutions especially strong. Investments rose slightly but fell short of the June record. Reports from banks in leading cities indicate that loans continued to increase through mid-October, while deposits and investments declined slightly. Consumer instalm ent credit outstanding at com mercial banks de clined in Septem ber for the second straight month. New extensions recently have been running at about the average rate for the year to date, but repayments in July, August, and September were well above those earlier in the year. Consumers continued to add to their savings in September, although at a slower rate than in earlier months. Personal income rose slightly in August, the latest month for which data are available. Department store sales, usually erratic, were down sharply in September but appear to be re gaining ground in October. Bank debits also slipped a bit in September from the record August level. Total volum e of construction contract aw ard s in Septem ber re covered substantially from the low m ark of August. Residential awards, B o r r o w i n g s f r o m F. R. B a n k s ^ 4L^** ^ Excess R eserves \ 1962 C l .......I , T, . i , i i i iJ 1963 ♦Seas. adj. figure; not an index. 1964 the most stable component of the total, continued their gradual readjustment to more realistic rates of growth following the sharp bulge at the beginning of the year. While fourth-quarter gains comparable to last year’s steep climb may be difficult to achieve, prospects appear good for continued high volume. Heavy backlogs of projects in the planning stage, an uptrend in nonresidential building awards, and a strong demand for mortgages in the national market underlie the good construction outlook for the District. N o t e : D ata se ason al o n w h ic h s ta te m e n ts a re b a s e d h a v e b e e n a d ju s t e d w h e n e v e r p o s s ib le t o e lim in a t e in flu e n c e s.
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