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MONTHLY REVIEW B U S IN E S S FED ERA L RESERVE C O N D IT IO N S BANK IN T H E S IX T H D IS T R IC T N o v e m b e r 3 0 , 1 93 3 Trade As was true of the United States as a whole, the volume of retail trade increased in October by considerably less than the usual seasonal amount, largely by reason of continued mild weather. While the actual sales of reporting retail firms in the District were up by 11.1 per cent over September, they were 2.9 per cent less than in Oc tober last year. Preliminary reports for the first two weeks in November, however, show an increase of 5.7 per cent over the same two weeks a year ago; and, if these preliminary reports prove a reliable indication for the rest of November, C O N D IT IO N O F 2 2 M EM BER BANKS IN S E LE C TED C IT IE S (I n T h o u s a n d s of D o lla r s ) R E S E R V E O F A TLA N TA The business improvement begun in the second quarter of this year has continued without reversal of direction in October, either in the country as a whole or in the Sixth District. Judging from incomplete data currently becoming available, moreover, the upward trend is being extended in November. From a comparative standpoint, the District seems in general to have held its own in the total recovery movement to date. Increasing business activity in the Sixth District on the basis of latest available data has been represented by ex pansion in residential construction contracts, in the pro duction of pig iron and electric power, in employment and payrolls, and in farm income. The increase in residential contracts in October reversed a previous decline in Sep tember. The October increase in pig iron production was 14 per cent over September, and the production rate—the largest in a year—was more than two and one half times the rate in July. Electric power production for September, the latest available figure, increased to the highest level on record. Declines in business activity were represented by a small decrease in wholesale sales and, after a previous steady in crease for five months, in a decrease of 2.3 per cent in the rate of cotton consumption. In addition, retail trade was affected by a lagging seasonal movement. L o a n s a n d I n v e s tm e n ts — T o t a l___ L o a n s — T o t a l................................................... C o m m e rc ia l, i n d u s tr i a l a n d a g r i c u l t u r a l l o a n s ............................ O p e n m a r k e t p a p e r ............................... L o a n s to b r o k e r s a n d d e a l e r s in s e c u r i t i e s ............................................ O th e r lo a n s fo r p u r c h a s i n g o r c a r r y i n g s e c u r i t i e s ..................... R e a l e s t a t e l o a n s .................................... L o a n s to b a n k s ......................................... O th e r l o a n s ................................................. I n v e s tm e n ts — T o t a l .................................... U . S. d ir e c t o b l i g a t i o n s .................... O b lig a tio n s g u a r a n t e e d b y U . S. O th e r s e c u r i t i e s ...................................... . R e s e r v e w ith F . R . B a n k ....................... C a s h in v a u l t ................................................... B a l a n c e s w ith d o m e s tic b a n k s ___ D e m a n d d e p o s it s —a d j u s t e d ............... T im e d e p o s i t s .................................................. U . S. G o v e r n m e n t d e p o s i t s .................. D e p o s its of d o m e s tic b a n k s ............... B o r r o w in g s : F ro m F . R . B a n k .......... F ro m O t h e r s .................. F E D E R A L No-w. 16 1938 C h a n g e F ro m : O c t. 1 2 ,1 9 3 8 N o v .1 7 ,1 9 3 7 $ 5 9 5 ,2 4 5 3 0 7 ,0 0 9 + 1 5 ,8 4 1 + 1 3 ,3 3 5 + 4 0 ,9 5 8 + 1 8 ,5 2 7 1 7 1 ,7 9 6 2 ,8 7 3 + 1 0 ,3 6 8 + 663 + 1 6 ,8 2 0 — 1 ,3 1 9 — — 6 ,0 3 8 694 the lag in October will have been somewhat more than counterbalanced by the end of this month. Total sales by reporting firms in the District for the ten months of 1938 were only 4.0 per cent less in dollars than in the first ten months of 1937. Both in retail and wholesale trade a relatively improved inventory position may be indicated by the fact that inven tories in October this year are smaller than in October a year ago: in the case of retail trade, 5.0 per cent less and, in the case of wholesale trade, 9.2 per cent less. However, with regard to wholesale trade, for which the Bureau of Labor statistics price index is available for comparison, the inventory shrinkage is almost exactly offset by an average price decline of 9.1 per cent over the year. It may be noted, moreover, that in wholesale trade the business shrinkage of 0.7 per cent from September to Oc tober was a reflection of prices that averaged 0.9 per cent lower. In the same way, from October, 1937, to October, 1938, there was a decline of 5.6 per cent in wholesale trade in the District, which was considerably more than counter balanced by the 9.1 per cent price decline referred to above. Banking At weekly reporting member banks in leading cities of the Sixth District both loans and invest ments have increased further in recent weeks. On November 16, total loans were 13.3 millions of dollars larger than five weeks earlier, 30 millions larger than at the middle of July and were at the highest level in more than five years. As in other recent months, increases in loans for commercial, in dustrial, and agricultural purposes account for most of the increase in total loans. Loans to banks have recently declined to the lowest amount reported since March, 1937. Holdings of investment securities have increased about 26 millions of dollars since mid-year, nearly two-thirds of the gain being in direct obligations of the United States, and about onethird being in “Other Securities.” At the middle of Novem ber total loans were 18.5 millions larger than a year ago, and investments were 22.4 millions larger. Demand deposits-adjusted have averaged higher each month since June and on October 26 amounted to 345.2 mil lions of dollars, a new high level, but only slightly larger than totals reported in August and March of 1937. Time de posits, and Treasury balances maintained with these banks, have changed little in recent weeks. Deposits of correspond ent banks have increased about 47 millions since June, and 700 1 5 .0 6 0 ............+ 633 — 211 2 8 ,3 7 7 ........... + 2 1 0 ...............+ 1 ,5 1 5 9 6 2 ............— 1 ,5 0 4 — 1 ,3 8 5 8 1 ,9 0 3 ............+ 3 ,6 5 9 ...............+ 3 ,8 0 7 2 8 8 ,2 3 6 ............+ 2 ,5 0 6 ...............+ 2 2 ,4 3 1 1 5 7 ,8 7 0 ............— 5 4 2 .............. + 4 ,0 1 9 4 2 ,8 0 7 ............+ 6 6 0 ...............+ 9 ,0 5 4 8 7 ,5 5 9 ............-4- 2 ,3 8 8 ...............+ 9 ,3 5 8 1 0 5 ,9 0 7 ........... + 3 ,1 7 4 ...............+ 3 ,2 8 1 1 1 ,4 6 5 ............— 3 7 5 ..............+ 87 1 4 1 ,3 0 8 ............+ 2 ,1 1 1 ............... + 4 1 ,5 4 9 3 4 2 ,6 8 1 ............+ 1 ,7 7 4 ...............+ 1 9 ,4 1 0 1 8 4 ,2 6 0 ............— 1 ,0 8 0 — 1 ,3 5 5 3 4 ,2 4 9 ............— 3 8 0 .............. + 2 3 ,9 2 9 2 3 4 ,6 6 3 ............+ 1 8 ,3 3 9 ...............+ 4 5 ,8 2 8 4 2 ............+ 42 — 2 ,0 5 5 ............. .........................— 311 C O N D IT IO N O F FED ERA L RESERV E BANK O F ATLANTA (I n T h o u s a n d s of D o lla r s ) N o v . 16 ____________________________________ 1 9 38 B ills D iscou n ted................................... B ills Bought........................................... In d u strial A d v a n ce s ........................... United States Se c u ritie s..................... Total B ills a n d Se c u ritie s............. Total C a s h R e se rv e s........................... F . R. Note C ircu la tio n ....................... Member B ank R eserve D e p o s its ... U . S. Treasu rer— G e n e ra l Account Total D ep osits................................... Commitments to M ake Industrial A d v a n ce s........................................... $ 486 19 181 1 0 4 ,5 2 1 1 0 5 ,2 0 7 2 8 5 ,0 9 6 1 4 8 ,4 9 0 1 7 3 ,1 1 5 5 0 ,8 0 4 2 3 5 ,6 8 9 172 C h a n g e F ro m : O c t. 1 2 ,1 9 3 8 N o v .1 7 ,1 9 3 7 — 107 — 3 ,6 2 8 ........................— 80 — . 5 + 4 7 .......... .............— 7 ,4 1 0 — 113 — 1 1 ,0 7 1 + 1 8 ,7 0 2 + 4 4 ,1 7 4 + 2 ,4 1 2 — 1 6 ,1 5 5 + 2 ,8 4 7 + 3 ,4 3 3 + 1 6 ,1 0 6 + 4 6 ,3 0 7 + 1 6 ,2 2 1 + 4 9 ,2 5 5 — 3 — 179 2 B u s i n e s s C o n d it i o n s in D E B IT S T O IN D IV ID U A L A C C O U N T S (In Th ousand s ol D o llars) O c t. S e p t. 19 38 19 38 ALABAMA B ir m in g h a m .............................................. $ 8 2 ,8 6 1 D o t h a n ........................................................ 3 ,6 3 1 M o b ile ........................................................... 4 0 ,5 7 7 M o n tg o m e r y ............................................ 2 6 ,5 2 1 FLO R ID A J a c k s o n v il le .............................................. 6 3 ,8 2 4 M ia m i............................................................. 3 6 ,8 3 5 P e n s a c o l a ................................................... 8 ,0 6 0 T a m p a ........................................................... 2 4 ,7 3 6 G E O R G IA A l b a n y .......................................................... 5 ,4 0 0 A t l a n t a ........................................................ 2 0 0 ,2 2 6 A u g u s t a ...................................................... 1 7 ,2 3 8 B r u n s w ic k ................................................. 2 ,3 9 7 C o lu m b u s ................................................... 1 3 ,7 7 4 E l b e r to n ...................................................... 1 ,4 2 4 M a c o n ........................................................... 1 5 ,5 6 9 N e w n a n ...................................................... 1 ,8 8 2 S a v a n n a h ................................................... 2 8 ,5 5 4 V a l d o s t a ...................................................... 3 ,8 5 9 L O U ISIA N A N e w O r l e a n s ............................................ 2 3 8 ,8 8 9 M IS S IS S IP P I H a t t i e s b u r g .............................................. 4 ,9 7 5 J a c k s o n ........................................................ 3 8 ,7 0 9 M e r id i a n ...................................................... 1 1 ,9 6 1 V ic k s b u r g ................................................... 9 ,0 1 6 TE N N ESSEE C h a t t a n o o g a ............................................ 4 1 ,6 7 9 K n o x v ille ................................................... 2 8 ,8 1 5 8 1 ,1 7 6 N a s h v ill e ......................................... .. TO TA L 2 6 C i t i e s ...............................$ 1 ,0 3 2 ,5 8 8 $ 7 5 ,6 1 2 3 ,7 0 4 3 8 ,7 8 6 2 2 ,3 4 0 $ th e O c t. 1937 $ 9 3 ,9 6 7 3 ,7 1 8 4 2 ,6 1 0 2 4 ,7 7 1 6 0 ,9 7 4 3 1 ,3 6 8 7 ,5 9 9 2 2 ,9 1 1 6 9 ,7 8 2 3 0 ,6 4 4 8 ,9 7 5 2 6 ,0 3 8 4 ,9 5 4 1 8 2 ,7 8 3 1 5 ,7 5 1 2 ,2 3 7 1 2 ,9 1 5 1,0 5 1 1 4 ,1 1 6 1 ,6 4 3 2 8 ,8 5 9 4 ,6 7 0 5 ,6 4 9 1 8 4 ,1 6 5 1 9 ,0 5 4 2 ,6 2 5 1 5 ,4 8 4 1 ,4 9 0 1 7 ,4 0 2 2 ,3 5 5 3 2 ,8 9 8 3 ,9 9 4 2 2 7 ,0 5 6 2 5 9 ,9 6 5 4 ,9 0 4 3 4 ,6 9 0 1 0 ,6 5 7 7 ,2 9 8 4 ,9 1 6 3 6 ,0 4 1 1 1 ,6 8 2 1 0 ,8 7 4 4 0 ,8 2 1 2 7 ,7 1 2 8 0 ,7 0 9 4 3 ,8 3 6 2 9 ,5 0 8 8 8 ,3 6 9 9 5 6 ,7 6 0 $ 1 ,0 7 0 ,8 1 2 at the middle of November were the largest since March, 1937. The weekly statement of the Federal Reserve Bank of At lanta has recently shown further reductions in the small volume of discounts for member banks. Industrial advances, however, increased in the second week of October and, after declining through November 2, have since increased some what. In the five weeks ending November 16 Treasury de posits with the bank have been increased 16 millions of dollars and member bank reserve deposits increased 2.8 mil lions. Fereral Reserve note circulation has also been larger in recent weeks than since last spring, and total reserves . have increased to the highest point in recent years. Estimates based on latest available figures of deposits indicate that member bank reserve deposits on November 16, amounting to $173,115,000, were about 38.4 millions of dollars, or 28.5 per cent, in excess of legal requirements. Estimated excess reserves of member banks in August averaged nearly 40 mil lions of dollars, in September 30.9 millions, and in October 33.9 millions. Agriculture Continued warm, dry weather during Octo ber was favorable for cotton picking, so that a much larger than usual proportion of the cotton crop had been picked by November 1, and weather also favored the harvesting of corn, peanuts, and other late crops. At the same time, the sowing of winter grains was delayed, and a considerable decline was caused in the condition of pas tures and of late vegetables. The damage to fall vegetables was increased in upper central Florida and parts of the West Coast by exceptionally heavy rains. November 1 crop estimates by the United States Depart ment of Agriculture for the six states of this District com bined show a small monthly increase for corn, peanuts, to bacco, potatoes, apples, pears, and grapes, and an estimated monthly decrease for sweet potatoes and pecans, and, in Louisiana, for rice and sugar cane. A small increase in the cotton estimate for Mississippi from October to November was slightly more than offset in the six-state total by de creases for Louisiana and Florida, and the total for the six S ix t h F ederal R eserve D is t r ic t states declined by 6,000 bales, or 0.1 per cent, which com pares with a decline of 0.6 per cent for the United States. Good progress is being made in harvesting the largest sugar cane crop ever grown in Louisiana. It is estimated that approximately 514,000 tons of raw sugar will be real ized from a production of 6,270,000 tons of cane that will be cut for sugar. Yields of rice in the southwestern part of Louisiana were short of expectations, because of the August storm. About 91 per cent of the Louisiana crop had been cut and threshed at the end of October. In general, November estimates continued to indicate a larger production of most crops in the Sixth District this year in comparison with last year. The important excep tions are cotton, pecans, apples, and wheat, which will show, respectively, approximate declines of 36, 26, 58, and 15 per cent. Estimated receipts from the sale of principal farm prod ucts, including Government payments in the six states of this District, increased 75.3 per cent from August to Sep tember and were 4.1 per cent larger than in September 1937. Cumulated totals for the January-September period, amounting to nearly 465 millions of dollars, were 9.4 per cent smaller than in that part of last year. The September income from crops was slightly more than double the total for August, but receipts from livestock and livestock prod ucts increased 4.2 per cent. Government payments also more than doubled from August to September and were much larger than a year earlier. Prices of farm products, according to the wholesale price index of the United States Bureau of Labor statistics, rose from 65.9 per cent of the 1926 average on August 20 to 68.9 per cent on September 24, but have since averaged somewhat lower. In the week ended November 5 prices of farm products declined 1.5 per cent, and those of foods 1.2 per cent, and in both instances were 13.5 per cent lower than at the same time last year. Industry Total value of construction contract awards in creased further in October by 1.9 per cent, and was 89.5 per cent larger than a year ago. The October total was the largest since July 1937, when contracts amounted to about 34 millions of dollars, a total that has been exceeded only twice since the summer of 1929. Following the large total for July last year, there were sharp declines to a little less than 11 millions of dollars in February, but since Feb ruary, the total has increased each month except June. Value of residential contracts, after a sharp reduction in September, increased in October and was 77.2 per cent greater than in October 1937. Total contract awards in creased from September to October in Georgia and Tennes see, and residential contracts declined in Alabama but in creased in the other five states. Total, and residential, con tracts were larger than a year ago in all six states. Cumu lated totals for the ten months of 1938 show an increase over that part of 1937 of 1.5 per cent in residential con tracts, but a decrease of 6.9 per cent in other awards. The daily average rate of pig iron production in Alabama increased 14 per cent further in October and was 3.0 per cent smaller than in October last year but larger than for other months since that time. From a low level of 2,859 tons in July, the daily rate has risen to 7,455 tons in Octo ber, when 16 of the 18 Alabama furnaces were in operation. Coal production in Alabama and Tennessee increased fur ther in October but continued less than a year ago. B u s i n e s s C o n d it i o n s s ix t h in th e STO CKS J a n .-O c t. O c t. 1938 In cl. C o m p a red C o m p a red w ith w ith Y e a r A g o O c t. 19 37 O c t. 1 9 38 C o m p a r e d w ith S e p t. 1 938 O c t. 1 9 37 R E T A IL TR A D E A t l a n t a ................................. — 3 ,4 B ir m in g h a m ....................... 4 - 1 6 .7 C h a t t a n o o g a ..................... + 4 .0 M o n tg o m e r y ..................... + 8 . 9 N a s h v ill e ............................ + 10.2 N e w O r l e a n s .................... + 1 8 .5 O t h e r C i t i e s .......................+ 1 9 .1 D ISTR IC T (4 9 F i r m s ) . + 11.1 + 0,1 —10.1 — 4 .5 — 0.8 ■ 1.5 ■ 9 .4 ■ 6 .4 — 0.7 — 2.7 0 .9 • 5 .9 - 4 .0 — 2 .9 W H O LE S A L E TR A D E G r o c e r i e s ............................ — 6.6 D ry G o o d s ..........................— 1 0 .4 H a r d w a r e ............................ + 9 .1 E le c tric a l G o o d s ........... + 1 7 .6 D r u g s .................................... + 1 .3 F u r n i t u r e ............................ — 1 1 .9 S h o e s ...................................... + 7 .7 T O T A L ...............................— 0 .7 —12.2 — 4 .2 — 3 .3 + 2.2 + 1.2 + 2.6 + 1 2 .5 — 5 .6 October 1938 2 6 .8 3 2 .9 3 2 .9 - 2.2 -21.6 - 1 4 .0 -10.6 - 7 .9 - 5 .0 2 7 .7 3 3 .G 3 2 .6 3Q.5 - 1 3 .3 - 1 3 .2 - 1 5 .4 -2 5 .7 - 3 .4 - 9 .7 - 5 .9 - 1 5 .7 8 6 .3 4 1 .9 - 3 9 .4 - 4 .6 6 5 .6 - 1 2 .4 9 .2 48.1 67.8 3 0 .6 5 9 .2 Sept. 19 38 C O M M ER C IA L F A IL U R E S — D IST R IC T N u m b e r ( A c t u a l ) ....................... L i a b il iti e s .........................................$ 4 7 6 Oct. 19 38 54 $ $ 1938 35 263 $ C O N T R A C T S A W A R D ED — D IST R IC T ....................................$ 2 8 ,0 8 2 $ 2 7 ,5 4 8 $ 1 4 ,8 2 0 R e s i d e n t i a l ...................................... 8 ,4 2 2 6 ,0 9 5 4 ,7 5 4 1 9 ,6 6 0 2 1 ,4 5 3 1 0 ,0 6 6 A ll O t h e r s ...................................... A l a b a m a ........................................... 3 ,9 8 5 4 ,4 8 8 1 ,1 4 2 F lo r id a ........................................... 6 ,1 7 2 6 ,8 4 3 4 ,8 4 9 G e o r g i a .............................................. 6 ,4 1 7 4 ,5 7 0 2 ,4 6 6 L o u i s i a n a ......................................... 7 ,5 7 0 8 ,9 1 3 4 ,6 5 7 M is s is s ip p i...................................... 4 ,1 2 3 6 ,9 3 7 1 ,7 3 9 T e n n e s s e e ......................................... 4 ,8 0 1 3 ,3 8 2 2 ,6 1 9 B U ILD IN G PERM ITS— 2 0 C IT IE S ........................................... A t l a n t a ................................................. B ir m in g h a m .................................... J a c k s o n v il le .................................... N a s h v ill e ............................................ N e w O r l e a n s ................................. 15 O th e r C i t i e s ............................ Jan.-Oct., Incl. 1 9 37 54 748 R e s e r v e D is t r ic t R E T A IL S A L E S * — U n a d ju s te d D IST R IC T (2 8 F i r m s ) .................................... B ir m in g h a m .......................................................... C h a t t a n o o g a ........................................................ N e w O r l e a n s ...................................................... R E T A IL S A L E S * — A d ju s te d D IST R IC T (2 8 F i r m s ) .................................... B ir m in g h a m ........................................................ C h a t t a n o o g a ....................................................... N e w O r l e a n s ........................................................ R E T A IL S T O C K S * — U n a d ju s te d D IST R IC T (2 4 F i r m s ) .................................... A t l a n t a ..................................................................... B ir m in g h a m .......................................................... C h a t t a n o o g a ........................................................ 564 5 ,7 6 9 $ 1 9 3 ,3 7 1 6 6 ,8 3 1 1 2 6 ,5 4 0 2 5 ,1 3 0 5 7 ,7 3 7 3 8 ,6 0 9 4 5 ,1 7 3 2 5 ,0 6 2 3 9 ,4 4 0 1937 $ 299 2 ,6 6 2 $ 2 0 1 ,7 6 2 6 5 ,8 6 0 1 3 5 ,9 0 2 2 4 ,1 4 0 7 6 ,1 3 6 2 5 ,6 6 0 5 5 ,7 9 3 2 3 ,5 5 8 3 1 ,5 5 7 R E T A IL S T O C K S * — A d ju s te d D IST R IC T (2 4 F i r m s ) .................................... B ir m in g h a m .......................................................... C h a t t a n o o g a ........................................................ N e w O r l e a n s ........................................................ W H O L E S A L E S A L E S — T o t a l....................... D ry G o o d s ............................................................. H a r d w a r e ............................................................... 4 ,9 8 4 342 165 721 3 13 346 3 ,0 9 7 5 ,1 4 3 304 198 452 217 456 3 ,5 1 6 4 8 ,3 3 4 3 ,1 7 5 2 ,2 7 1 8 ,0 1 7 2 ,6 5 5 3 ,8 3 8 2 8 ,3 7 9 5 6 ,2 2 8 4 ,1 2 0 3 ,1 0 9 4 ,5 3 1 4 ,1 2 7 4 ,0 9 5 3 6 ,2 4 7 P IG IRO N P R O D U C T IO N — Tons A l a b a m a ............................................ 231 196 238 1 ,4 8 5 2 ,1 6 8 C O A L P R O D U C T IO N — Tons A l a b a m a ............................................ T e n n e s s e e ......................................... B ir m in g h a m ........................................................... J a c k s o n v il le ........................................................... 998 460 870r 440 1 ,1 0 5 490 8 ,4 6 5 3 ,5 2 4 1 0 ,2 0 9 4 ,2 6 3 N e w O r l e a n s ........................................................ 15 O th e r C i t i e s ................................................... S e p t. 19 38 (000 Omitted) O c t. A u g .- O c t.,r In cl. 1937 1938 1937 C O T T O N C O N SU M PTIO N — B ales A l a b a m a ........................................... G e o r g i a .............................................. T e n n e s s e e ......................................... T o ta l 3 S t a t e s ............................ 58 106 13 177 56 105 14 175 56 104 14 174 167 319 42 528 180 335 46 561 C O T T O N S E E D C R U SH ED — T o n s*.......................................... 230 237 327 558 740 66 56 68 145 145 F E R T IL IZ E R T A G S A LE S — Tons Total 6 S ta te s........................... M is s is s ip p i............................................................. T e n n e s s e e ............................................................... S e p t. 1938 FA RM IN C O M E*— S ix States. $ 8 9 ,6 7 7 A l a b a m a ............................................ 1 7 ,9 9 3 F l o r i d a .............................................. .. 2 ,9 7 8 G e o r g i a .............................................. 1 7 ,5 6 0 L o u i s i a n a ......................................... 1 4 ,9 4 6 M is s is s ip p i....................................... 2 6 ,6 9 4 T e n n e s s e e .......................................... 9 ,5 0 6 E L E C T R IC P O W ER P R O D U C TIO N — kw Hours A l a b a m a ......................................... 2 6 0 ,2 7 2 F l o r i d a .............................................. 8 2 ,7 6 1 G e o r g i a ........................................... 1 3 0 ,3 2 8 L o u i s i a n a ...................................... . 1 5 3 ,5 2 6 M is s is s ip p i.................................... 6 ,7 2 6 T e n n e s s e e ...................................... . 1 7 1 ,4 4 8 T o ta l S ix S t a t e s .................... 8 0 5 ,0 6 1 B y W a te r P o w e r ....................... 4 1 9 ,2 2 6 B y F u e l s ......................................... . 3 8 5 ,8 3 5 A ug. 1938 (000 Omitted) S e p t. J a n .-S e p t. , In c l. 1 937 1938 1937 $ 5 1 ,1 7 0 5 ,6 6 7 5 ,1 0 2 2 3 ,5 2 9 5 ,8 4 5 4 ,1 4 0 6 ,8 8 7 2 6 6 ,0 9 9 7 4 ,7 2 6 1 4 9 ,1 0 8 1 5 4 ,8 9 3 5 ,9 8 4 1 6 8 ,2 6 0 8 1 9 ,0 7 0 5 1 1 ,4 3 4 3 0 7 ,6 3 6 =revised. $ 8 6 ,1 1 5 1 4 ,9 8 0 3 ,1 8 4 1 8 ,1 1 9 1 3 ,8 6 5 2 6 ,0 7 2 9 ,8 9 5 $ 4 6 4 ,8 5 3 6 5 ,7 6 2 8 0 ,6 2 3 8 9 ,8 0 7 6 2 ,2 3 5 8 2 ,0 6 6 8 4 ,3 6 0 $ 5 1 3 ,0 8 2 7 3 ,6 4 7 9 8 ,4 2 7 9 6 ,0 9 8 6 4 ,2 0 7 9 2 ,4 1 9 8 8 ,2 8 4 2 4 5 ,3 3 6 2 ,2 2 1 ,8 1 2 7 2 ,8 5 8 7 3 7 ,6 3 6 1 4 2 ,0 6 4 1 ,1 0 0 ,2 6 0 1 6 0 ,5 3 2 1 ,2 0 0 ,4 1 0 8 ,5 2 9 5 3 ,5 9 3 1 2 5 ,8 2 7 1 ,1 7 9 ,0 3 9 7 5 5 ,1 4 6 6 ,4 9 2 ,7 5 0 3 4 6 ,5 2 9 3 ,7 1 2 ,7 8 9 4 0 8 ,6 1 7 2 ,7 7 9 ,9 6 1 2 ,1 0 6 ,3 4 6 6 7 8 ,9 1 9 1 ,2 8 3 ,7 6 8 1 ,2 5 4 ,6 4 4 5 6 ,1 2 9 1 ,0 3 9 ,3 8 6 6 ,4 1 9 ,1 9 2 3 ,5 1 0 ,9 4 8 2 ,9 0 8 ,2 4 4 .. ... ... C O T T O N C O N SU M PTIO N — 3 STATES * ... T e n n e s s e e ............................................................. .. 10 6.1 1 9 0.0 1 0 7.5 7 8 .7 8 5 .9 9 7 .4 1 2 7 .3 2 3 7 .5 1 0 8 .7 1 0 2 .7 1 0 3 .0 1 0 2 .7 1 0 9 .6 1 8 6 .7 1 1 7 .2 8 2 .4 8 9 .9 9 4 .3 7 7 .4 1 3 2 .4 7 5 .2 6 6 .3 6 3 .0 6 4 .6 7 4 .0 1 2 4 .0 7 3 .3 6 4 .5 5 8 .2 6 2 .8 8 5 .1 1 3 9 .7 8 3 .7 6 7 .8 7 3 .3 7 2 .3 6 9 .7 1 1 8 .2 6 8 .4 5 9 .2 5 5 .8 5 8 .7 6 9 .8 1 1 2 .7 7 1 .2 6 2 .0 5 4 .4 5 9 .8 7 6 .7 1 2 4 .7 7 6 .1 6 0 .5 6 4 .9 6 5 .7 7 8 .4 4 9 .3 8 3 .3 9 2 .8 8 5 .5 1 0 9 .3 7 9 .0 5 2 .8 r 9 3 .0 8 5 .1 9 7 .1 1 0 7.9 68.6 1 4 1 .7 3 5 9 .8 6 1 .0 4 4 .3 22.1 11.2 8 7 .6 4 9 .4 2 6 .9 5 6 .5 8 9 .4 6 0 .2 86.6 9 8 .4 9 2 .2 1 1 8.8 4 2 .2 3 3 .9 4 7 .8 2 5 .0 3 3 .4 3 7 .0 74.1 9 0 .2 4 7 .2 4 5 .7 1 9 .6 1 3 .4 5 4 .9 3 4 .2 3 5 .4 6 4 .2 8 5 .6 1 0 0 .7 1 4 7 .2 1 6 6 .7 1 3 9 .0 1 4 4.0 1 4 1 .5 1 6 1.1 1 3 3 .3 138.1 S e p t. 1938 A u g . 1938 1 2 6 .8 9 3 .5 ... 1 3 4.4 110.0 ,. ... 1 2 4 .7 1 2 6 .0 M is s is s ip p i............................................................. T e n n e s s e e ............................................................. S ix S t a t e s ........................................................... 1 3 4 .7 E L E C T R IC P O W E R P R O D U C TIO N * A l a b a m a .................................................................. F l o r i d a ....................................................................... , ... . ... 9 8 .1 4 7 .2 1 0 5 .2 1 0 8 .5 9 7 .7 P A Y R O LLS — (A v . fo r 1932=100) A l a b a m a .................................................................. L o u i s i a n a ................................................................ M is s is s ip p i............................................................. T e n n e s s e e ............................................................... S ix S t a t e s ........................................................... B y W a te r P o w e r ........................................... B y F u e l s ............................................................. 7 8 .5 4 3 .4 101.8 1 3 0 ,4 222.2 102.2 1 3 5 .9 1 4 3 .8 1 6 6 .5 1 3 5 .2 1 3 3 .2 EM PLO YM EN T— (A v . fo r 1932=100) A l a b a m a .................................................................. M is s is s ip p i............................................................. T e n n e s s e e ............................................................. S ix S t a t e s ........................................................... 112.0 1 1 9 ,7 2 3 9 .9 1 0 5 .4 9 7 .6 9 4 .8 9 4 .5 4 1 .0 2 4 .6 1 9 .4 7 2 .2 3 0 .9 1 6 .0 5 3 .8 P IG IRO N P R O D U C TIO N — ALABAMA * ‘ G e o r g ia , A la b a m a , L o u i s i a n a a n d M is siss ip p i. S e p t. 1938 1 2 6 ,3 2 2 6 .1 1 2 4 .7 9 7 .6 1 0 0 .5 86.6 B U ILD IN G PERM ITS— 2 0 C it ie s ............... O c t. 1 9 37 O c t. 1938 8 0 .0 6 0 .0 9 3 .3 8 7 .1 4 2 .6 9 6 .3 1 2 0.4 2 1 3 .8 C O N TR A C TS A W A R D ED — D ISTR IC T R e s id e n tia l............................................................. A ll O t h e r s ............................................................. 4 ,6 1 3 381 287 5 94 196 206 2 ,9 4 9 O ct. 19 38 3 N e w O r l e a n s ........................................................ (000 Omitted) Oct. ed eral C o lle c tio n R a tio - 6 .9 - 1 2 .5 - 8.1 • 6.6 — 4 .5 F S IX T H D IS T R IC T B U SIN E SS IN D E X E S (1923-1925=100 e x c e p t a s n o te d ) d is t r ic t b u s in e s s s t a t is t ic s SA L E S S ix t h 5 9 5 .8 1 0 7 .2 3 2 4 .8 3 2 1 .8 3 2 8 .1 120.6 S e p t. 1937 101.6 1 2 1 .5 120.0 1 5 1.9 9 9 .3 1 5 0.6 1 3 1 .5 1 2 2 .7 1 4 1 .2 1 4 0.0 1 7 4 .3 7 4 .5 1 6 3 .8 1 4 9 .1 1 2 8 .5 1 5 5.1 1 5 4 .5 2 3 6 .9 8 5 .2 1 9 5 .5 1 6 0 .6 1 6 3 .5 1 8 3 .9 1 8 6 .2 3 3 3 .1 3 6 7 .5 2 4 8 .2 5 8 1 .7 9 2 .3 2 6 8 .2 3 1 9 .8 3 7 9 .9 2 5 3 .2 2 7 7 .0 3 7 2 .0 2 4 9 .6 5 6 4 .4 1 1 9.6 2 0 7 .5 2 8 7 .0 2 8 1 .6 2 9 2 .9 9 0 .4 1 3 2 .5 1 1 6 .6 ‘ Indexes of retail sales, electric power and pig iron production and of cotton consumption are on a daily average basis, r = revised. B u s i n e s s C o n d it i o n s 4 INDUSTRIAL PRODUCTION in th e S ix t h F ed era l R eserve D is t r ic t N a tio n a l S u m m a r y o f B u s in e s s C o n d itio n s P repared by the Board of Governors of the Fed eral Reserve System I NDUSTRIAL production continued to increase sharply in October and the first three weeks of November, reflecting principally larger output of steel and auto mobiles. Wholesale commodity prices showed little change in this period. Volume of employment and national income increased in October. P I n d e x o f p h y s ic a l v o lu m e o f p ro d u c tio n , a d ju s te d f o r s e a s o n a l v a r i a ti o n , 1 9 2 3 - 1 9 2 5 a v e ra g e = 1 0 0 . B y m o n th s , J a n u a r y , 1 9 3 4 , to O c to b e r, 1 9 3 8 . FACTORY EMPLOYMENT AND PAYROLLS j u s tm e n t f o r s e a s o n a l v a r i a ti o n , 1 9 2 3 - 1 9 2 5 a v e ra g e = 1 0 0 . B y m o n th s , J a n u a r y , 1 9 3 4 , to O c to b e r, 1 9 3 8 . In d e x e s c o m p ile d b y U . S . B u r e a u o f L a b o r S ta t is tic s . WHOLESALE PRICES r o d u c t io n In October the Board’s seasonally adjusted index of industrial production was 96 per cent of the 1923-25 average, as compared with 90 per cent in September. Steel ingot production increased considerably, averaging 53 per cent of capacity in October, and in the first three weeks of November there was a further sub stantial advance. In the automobile industry output was increased rapidly during October and the first three weeks of November, both to stock dealers with new model cars and to meet the increased volume of retail demand accompanying the introduction of new models. Production, which in the first nine months of 1938 had been at a considerably lower level, was at nearly the same rate as in the corresponding period in other recent years. Output of plate glass also increased sharply further in October. Cement production showed a considerable increase, while lumber production declined slightly. Activity at textile mills, which had risen sharply during the summer, continued at about the August and September rate, although usually there is an increase at this time of the year. Shoe production declined somewhat further in October, and there was a decrease in output of tobacco products, while in most other industries manufacturing nondurable goods, changes in output were largely seasonal in char acter. Mineral production showed a further moderate rise, reflecting in large part increased output of crude petroleum and nonferrous metals. Lake shipments of iron ore also were in larger volume, although a decrease is usual in October. Coal production increased seasonally. Value of construction contracts awarded in 37 eastern states increased consider ably in October, according to figures of the F. W. Dodge Corporation, reflecting chiefly a sharp rise in awards for public projects. Contracts for hospital, educa tional, and other public buildings included in the Public Works Administration program were in large volume, and there was a further increase in contracts awarded for slum clearance projects of the United States Housing Authority. E m plo ym en t Employment and payrolls increased somewhat further between the middle of September and the middle of October. At automobile factories employment con tinued to rise sharply and there were further moderate increases in most other durable goods industries. The number employed at canning establishments declined and in other nondurable goods industries showed little change. Employment in creased somewhat at mines, on the railroads, and in the construction industry, while in trade the rise was less than seasonal. D is t r ib u t io n Sales at department and variety stores and by mail order houses showed less than the usual seasonal increase in October, partly because consumer buying of winter merchandise was retarded by unseasonably warm weather during most of the month. In the first two weeks of November department store sales increased moderately. Freight-car loadings rose considerably further in October, owing largely to in creased shipments of grains, coal, and miscellaneous freight. In the first half of November loadings showed a seasonal decline. I n d e x c o m p ile d b y U . S. B u r e a u o f L a b o r S ta tis tic s , 1 9 2 6 = 1 0 0 . B y w e e k s , 1 9 3 4 , to w e e k e n d in g N o v e m b e r 19, 1938. C o m m o d it y P r ic e s Wholesale commodity prices generally showed little change from the middle of October to the third week of November. Prices of steel scrap and leather advanced. Tin plate prices, on the other hand, were reduced, and there were also decreases in zinc, hides, and rubber. Prices of farm products and foods showed small fluctu ations in this period. B ank C r e d it Total loans and investments at reporting member banks in 101 leading cities declined by about $150,000,000 during the first half of November following a sub stantial increase during October. The decline in November was almost entirely at New York City banks and reflected the retirement of state and local government obligations held by these banks. Adjusted demand deposits, which reached an alltime peak of $16,000,000,000 at reporting banks in the last week in October, also decreased somewhat in the first half of November. Member bank reserves in the middle of November were at about the high level reached a month earlier. M W e d n e s d a y fig u re s o f to t a l m e m b e r b a n k r e s e r v e b a la n c e s a t F e d e r a l R e s e rv e B a n k s , w ith e s tim a te s o f r e q u ir e d a n d e x c e ss re s e r v e s , J a n u a r y 3 , 1 9 3 4 , to N o v e m b e r 2 3 . 1938. o n ey R ates and B ond Y ie l d s The prevailing rate on open-market commercial paper declined slightly in No vember to % of 1 per cent, a new low level. Other short-term open-market rates were unchanged. Yields on U. S. Government securities and on high-grade corpo rate bonds showed only small changes during November, continuing close to the low levels reached in October.
@FedFRASER