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M o n th ly W

R e v ie w

F E D E R A L R E S E R V E B A N K O F AT L A N T A
Volume X X V II

Atlanta, Georgia, November 30, 1942

Number 11

A g ricu ltu ral Incom e in the Sixth D istrict
The recent debate concerning farm prices has directed atten­
tion to the national farm income picture. Total cash farm in­
come in the United States is estimated at $15.0 billion for this
year. Cash farm income for 1941, including government pay­
ments, was about $11.8 billion, a half billion larger than in
1929. However, because of certain peculiarities in the farm
income picture in the Sixth District, which differentiate it
from the national picture, it is of value to consider the Dis­
trict situation alone.
The variations in cash farm income since 1924 for the
United States are shown in Chart 1, and for the District in
Chart 2. Several significant differences may be observed from
the charts.
►In the first place, although the total cash farm income in
the United States in 1941 was at a higher level than in 1929,
the District aggregate did not quite equal the 1929 figure. In
1929 cash farm income in the Six States of the District
amounted to $1,091 million, and in 1941 to $1,052 million.
A second distinctive difference is the greater importance to
the farmers of the District of crops as compared with live­
stock. In 1941 approximately 67 per cent of the total cash
farm income in the District was derived from the marketing
CASH
U N IT E D S T A T E S

B L N O D LAS
IL IO S F O L R




of crops, while 25 per cent came from the sale of livestock
and livestock products. The remaining 8 per cent represented
government payments. For the United States as a whole, on
the other hand, only 41 per cent of the total cash farm income
came from the sale of crops, while 54 per cent came from the
sale of livestock and livestock products, with 5 per cent being
accounted for by government payments.
A third factor worthy of note is the importance of govern­
ment payments in the aggregate farm income of the District.
Although total cash farm income in the District in 1941 ap­
proached the 1929 level, this would not have been the case
without government payments.
►An interesting development in District agriculture over the
past decade or so has been the growing importance of the
livestock industry. In 1929 approximately 22 per cent of the
District’s total farm income was received from the marketing
of livestock and livestock products and in 1941 this item ap­
proximated 25 per cent of the total. Excluding government
payments, the income from livestock marketing accounted for
a somewhat larger proportion, about 27 per cent. It is still
true, however, that the farmers of the District depend pri­
marily upon income from crops for their cash income.

FARM

INCOME
S I X T H D I S T R IC T

M L N O D LAS
IL IO S F O L R

M

7 8

o n t h l y

R e v ie w

of the Federal Reserve B a n k of Atlanta for November 1942

While the foregoing over-all picture of the farm income
situation in the District indicates the general trends through­
out the area, there are variations from state to state. The trend
of farm income payments in each of the Six States can per­
haps be best understood by converting the payments into year­
ly indexes of farm income. These indexes, using 1929 as the
base year, are shown in Table 1.
While it is true that income from the sale of crops accounts
for the largest part of farm income in the District, the par­
ticular crops stressed vary from state to state. The proportion
of income coming from important crops in the District is
shown in Table 2. Cotton is the chief money crop in the Dis­
trict as a whole and in each state of the District with the ex­
ception of Florida.
The dependence upon this crop for such a large proportion
of cash farm income, therefore, means that much of the vari­
ation from year to year in the level of cash farm income in
this area results from variations in the prices received for cot­
ton and the size of the cotton crop. The total cash farm in­
come of the District from 1929 through 1941 is compared in
Table 3 with the price of cotton in ten markets each year.
There is a rough parallel movement between farm income and
the price of cotton. This has been reduced somewhat by the
introduction of benefit and other types of government pay­
ments beginning with 1933.
►During the first 9 months of 1942, cash farm income in
the six states of the District was 41 per cent higher than dur­
ing the same period in 1941. Assuming that this percentage
increase holds in the last 3 months of 1942 as well, income
from the marketing of crops and livestock in 1942 will
amount to $1,360 million—more than in any year since 1924.
However, this estimate is too conservative. The present crop
forecast indicates that the cotton crop will be much larger
and the price higher than in 1941. The ten-market average
price for Middling 15/16 on November 20 was 19.27 cents a
TABLE 1
IN D EX ES O F C A S H FA RM IN C O M E , IN C L U D IN G G O V ER N M EN T PAY M EN TS
1929 - 100
S ix
Y ear
U. S.
A la.
F la .
G a.
La.
M iss.
Tenn.
S ta te s
1924
91
87
86
94
75
80
89
85
1925
97
103
102
100
98
115
94
103
94
1926
88
101
80
83
75
87
84
1927
95
92
95
94
78
98
92
92
1928
98
85
103
88
84
92
94
90
1929
100
100
100
100
100
100
100
100
1930
80
64
101
77
67
64
74
73
1931
56
35
87
41
51
35
52
47
1932
42
33
31
70
31
38
42
38
41
1933
48
61
48
43
42
47
46
1934
60
70
82
68
59
61
66
67
1935
68
62
85
67
78
63
72
70
1936
77
72
95
78
85
83
76
81
1937
82
79
73
118
76
78
87
83
1938
71
72
66
99
77
75
77
83
1939
77
61
115
81
73
79
77
70
1940
81
60
75
72
60
85
73
102
1941
105
120
96
83
84
96
125
83

T B E2
AL
IN E FROM TH M R ETIN OF CROPS
COM
E AK G
SIX D
TH ISTRICT STA
TES
P e r c e n t a g e D is tr ib u tio n 1941
A la .
F la .
G a.
La.

...
..................
.........................
...............
............

C o tto n lin t a n d s e e d
.
T o b a c c o ...............................
V e g e ta b le s
F ru its
F o o d G r a in s * ....................
F e e d cro p s* *
A ll o th e r c r o p s

73.0
.1
5.8
2.2
.1
3.3
15.5

1.4
3.5
41.5
42.2
.6
10.8

51.8
9.2
6.2
3.9
.9
3.1
24.9

*R y e, r ic e , w h e a t , b u c k w h e a t .
* * C o rn , o a t s ,g r a in s o r g h u m s , h a y .
S O U R C E : B u r e a u of A g r ic u ltu r a l E c o n o m ic s




M iss.

39.0

90.4

9.4
4.8
21.7
1.5
23.6

2.6
.7
2.0
4.3

T enn.
53.3
19.9
5.7
3.7
3.7
6.9
6.8

S ix
S ta te s
54.7
5.4
11.3
9.1
3.3
2 .9
13.3

R e c o n n a is s a n c e
PER CENT DECREA SE

^

PER C E N T IN C R E A SE

Department
Stocks
Department $
F u rm tu rlln p e s
W h o le s a iH ie s
Construction Contracts
Cotton C o iH lip tio n
Emplo
P a y ri
Collections
Bank Debits H I!
Loans
M ember Banlfl
Demand D e p J l f l H
40

30

20

10

0

10

+
20

30

40

S ix th D is tr ic t s ta t is tic s io r O c to b e r 1942 c o m p a r e d w ith O c to b e r 1941

pound, considerably above the 1941 price of 16.41 cents. The
cotton and peanut crops are reported to be moving to market
more slowly than usual this year so that the marketing of
these crops is likely to be unusually large in the last 3 months
of the year. Thus, when this year’s crops are marketed, the
rate of increase will probably be larger. At any rate, cash
farm income, excluding government payments, will be higher
than at any time since 1924.
The fact that cash farm income, excluding government pay­
ments, will probably be higher in the District this year than
for many years should not obscure the fact that the cash farm
income in the District is still highly dependent upon govern­
ment assistance in one form or another. Although there have
been increased demands for cotton due to the war program
and increased consumption by textile mills, there is still a
large carry-over and the 1942 crop will probably exceed con­
sumption. Because of the great dependence upon cotton and
the fact that the income from that crop is to a large extent
dependent upon the government’s agricultural policy, it may
be concluded that farmers in the District, perhaps more than
those in the United States as a whole, are dependent upon the
government’s agricultural program.
TABLE 3
C A S H FA R M IN C O M E . IN C L U D IN G G O V E R N M E N T PA Y M EN TS. A N D TH E
P R IC E O F C O T T O N IN SIX T H D IST R IC T STA TES
C a s h F a rm In c o m e
P r ic e o f C o tto n *
Y ear
192 9
193 0
193 1
193 2
193 3
193 4
1935...............................
1936........... ' ..................
1937...............................
1938...............................
1939...............................
1940...............................
1941...............................

...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................
...........................

(m illio n s of d o lla r s )
1,091
788
512
418
502
728
749
882
903
838
840
798
1,051

(c e n ts )
16.23
9.99
6.09
7.29

11.00

12.68
11.88
13.25
9.09
9.00
10.09

11.00
16.14

• M id d lin g 15/16 in c h , 10 m a r k e ts ; y e a r l y a v e r a g e th r o u g h 1940; in 1941 p r ic e
o n A u g u s t 15.
S O U R C E : B u r e a u o f A g r ic u ltu r a l E c o n o m ic s

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of the Federal Reserve B a n k of Atlanta for November 1942

7 9

Sixth D istrict Business Conditions
Acceleration of the war production program in November was last year, but are still higher this fall. The ten-market aver­
reflected in the expansion of shipbuilding facilities in the Dis­ age of spot cotton prices on November 20 was reported by the
trict, the letting of a large cargo plane contract to a District Department of Agriculture at 19.27 cents per pound, while at
firm, and continued exploitation of additional raw material the corresponding time last year it was 16.41 cents. In the
resources in the District. Concomitant with this further con­ four designated markets in the Southeast the average on No­
centration of the District industries on war production, the la­ vember 20 this year was 19.46 cents against 16.66 cents a
bor supply available for the expansion of District industrial year earlier.
and agricultural production approached more closely to a
Reports of the Agricultural Marketing Administration indi­
condition of full employment than at any other time in recent cate that ginnings of cotton through November 13 reflect
business history. While no over-all labor shortage can be said somewhat lower average grades and shorter lengths than in
to have developed in the Sixth Federal Reserve District to 1941. Except in Louisiana and Mississippi, a smaller percent­
date, very real shortages of special skills and shortages in age of cotton ginned has been graded as Middling or better,
specific localities are present and were further intensified and for the Six States the proportion is in the neighborhood
during November.
of 46 per cent, against 51 per cent at this time last year. In
Banking and credit agencies in the District continued the Tennessee 81 per cent of the cotton ginned this year, to No­
conversion of credit resources from peace to wartime use dur­ vember 13, has been one inch or longer, against 70 per cent
ing November. The holdings of Government obligations by last year, but in the other five states decreases were indicated.
member banks expanded during the month, while their out­ The Six State average of cotton one inch or longer is about
standings of consumer credit paper continued to decline, thus 6 6 per cent of the total ginned, compared with about 72 per
reflecting in the financial sphere the conversion of industry cent last year.
Sixth District farmers planted larger areas this year in pea­
from the production of durable civilian consumer goods to
the production of weapons and military supplies. Monetary nuts, cotton, hay, oats, tobacco, potatoes, rice and sugar cane,
circulation continued to expand in November as business ac­ and somewhat smaller areas in corn, rye and sweet potatoes.
tivity increased and farmers marketed extraordinarily large The peanut acreage was increased substantially over that of
other years, at the request of the Government, to meet the
crops at extremely favorable prices.
Agriculture: Farmers in the six states located wholly or increased demand for oils and to help provide substitutes for
partly in the Sixth Federal Reserve District have had in 1942 other oils that have heretofore been imported. The increase in
a most profitable season. Increased acreages were planted to the quantity of peanuts picked and threshed in the Six States
most of the more important crops this year, weather condi­ amounted to 67 per cent, according to the November esti­
tions were on the whole favorable in both the growing and mates by the Department of Agriculture. Total production in
harvesting seasons, and the strong demand from civilian, mili­ the area was 1,360,475,000 pounds, or almost half the esti­
tary, and lend-lease sources has kept prices of farm products mate of 2,810,525,000 pounds for the country as a whole.
Production of sugar cane this year for both sugar and seed
and foods at the highest level in many years.
On an acreage that on July 1 was about 4.5 per cent larger in Louisiana and Florida is estimated at 7,073,000 tons, com­
than that harvested in 1941, farmers in the Six States have ap­ pared with 5,462,000 tons produced in 1941 and the ten-year
parently produced a cotton crop larger by 34 per cent than (1930-1939) average production of 4,729,000 tons. Cane to
that of last year, according to the November estimate by the be ground for sugar is placed at 6,445,000 tons, an increase
United States Department of Agriculture. The November esti­ of 31 per cent from last year and the largest tonnage on rec­
mate indicates a total crop for the Six States of 5.058,000 ord. Indicated sugar content points to a production of sugar
bales, as against 3,766,000 bales produced last year. While a of 562,000 tons, which compares with 419,000 tons produced
large part of the season’s crop has been picked and ginned, last year and a ten-year average production of 355,000 tons.
picking had not on November 1 been completed, and it may In Louisiana a cool spell early in October favored an increase
be that the last monthly estimate, to be prepared on the basis in sucrose. Warm weather followed, however, and during the
of information available for December 1, will vary somewhat last week of the month rains had a tendency to retard matur­
ity of the cane. Cutting and grinding began shortly before
from this November estimate.
In more recent years the only crops that have been larger mid-October but made slow progress because of a shortage of
than this year’s production were those of 1937 and 1936. On labor that was later relieved by the tapering off of cotton and
a per acre basis, the yield in the Six States has been 25 per rice harvests. Cutting and grinding are in progress in Florida
cent larger than that obtained last year. In Tennessee the and sucrose content is expected to be favorable.
The Louisiana rice crop is estimated at 25,474,000 bushels,
yield is apparently 2 per cent lower than the record yield of
1941, but in the other five states there are increases ranging somewhat less than earlier expectations, but 28 per cent
from 17 per cent in Alabama to 86 per cent in Louisiana larger than that of last year, and larger than any previous
where the 1941 yield was much below the average for other year’s crop.
Production of corn increased this year in Tennessee, Lou­
recent years. For the country as a whole, the November esti­
mate places the current cotton crop at 13,329,000 bales, isiana, and Florida, but the Six State total is slightly less
against 10,744,000 bales produced last year. Cotton ginned than that for last year, according to the November estimates.
There were small increases in wheat and oats, and small de­
up to November 1 totaled 9,726,443 bales.
Cotton prices rose substantially in the summer and fall of creases in hay and rye.
(Continued on next page)



M

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o n t h l y

of the Federal Reserve B a n k of Atlanta for Novem ber 1942

R e v ie w

The tobacco crop is estimated to be 8 per cent larger than
that of 1941. Potatoes show an increase of nearly 7 per cent
over last year, a large decrease in Alabama being more than
counterbalanced by increases in the other five states. On an
acreage slightly less than in 1941, about 4 per cent more
sweet potatoes have been produced this year.
The estimate of the Georgia pecan crop has been reduced
somewhat since September 1, but it is still the largest ever
produced. The Louisiana crop is larger than it was in 1941,
although insects have taken a heavy toll again this year.
There were declines in Alabama, Florida, and Mississippi.
Prospects are for a much larger production of citrus fruits
in Florida from the bloom of 1942 than last season. The cur­
rent estimates indicate a crop of 35,700,000 boxes of oranges,
an increase of 22 per cent over last season, and production of
grapefruit is expected to be 25,100,000 boxes, 29 per cent
larger than for last season.
The increase in agricultural production has been accom­
plished in spite of a much smaller supply of farm labor. The
season began in the late winter and early spring with fewer
workers than last year, and this smaller supply has been fur­
ther reduced by many workers leaving for war jobs or enter­
ing the armed forces. Picking the cotton crop presented a
serious problem in many localities. In Georgia, and possibly
elsewhere, school holidays were announced at many points so
that students could help in this work. It is estimated that in
DEBITS TO INDIVIDUAL BANE ACCOUNTS
(In T h o u sa n d s oi D o llars)
P er C ent C h an g e
O c t. 1942 fro m

O c t.
1942

S e p t.
1942

17,566
173,647
7,772
10,531
102,888
43,020

14,658
158,227
7,252
8,043
98,665
35,800

130,803
68,940
14,383
17,729
13,329
56,674

123,188
64,148
13,013
18,795
11,418
53,010

112,321
60,864

40,663

+
+

6
7
10
6
17
7

9,275
368,531
33,740
9,157
36,793
2,454
38,264
4,612
65,821
6,195

7,967
325,127
30,235
7,991
33,303
1,767
34,973
3,511
63,222
6,158

8,837
335,825
33,233
3,956
28,779
1,844
31,805
4,009
42,465
7,447

+
+
+
+
+
+
+
+
+
+

16
13
12
15
10
39
9
31
4
1

41,057
14,414
368,335

27,152
12,230
334,111

332,786

13,864
71,760
16,447
19,132

12,846
61,351
15,412
11,368

11,434
41,006
19,104
13,780

85,750
47,318
159,664

78,411
44,293
137,608

69,748
41,636
134,370

+
+

1,958,585

1,768,739

274 C i t i e s .................. 55,057,000

52,704,000

O c t.
1941

S e p t. 1945 O c t. 1941

ALABAMA*
A n n is to n * ..................
B ir m in g h a m .............
D o th a n ........................
G a d s d e n * ..................
M o b ile ........................
M o n tg o m e r y .............

164,814
6,438
76,998
38,789

+

+
+
+
+
+

20
10
7
31
4
20

+ "5
+

21

+
+

34
11

+
+

16
13

+

23

+

39

FLORIDA
J a c k s o n v ille .............
M ia m i...........................
O r la n d o * ....................
P e n s a c o l a ..................
S t. P e t e r s b u r g * ----T a m p a .........................

14,375

+
+
+

GEORGIA
A lb a n y ........................
A tla n ta .........................
A u g u s t a ......................
B r u n s w ic k ..................
C o lu m b u s ..................
E l b e r to n ......................
M a c o n ----- ,..................
N e w n a n ................
S a v a n n a h ..................
V a ld o s ta ....................

+

10

+
+
+
+
+
+
—

131
28
33
20
15
55
17

+

11

+
+
—
+

21
75
14
39

+

9
7
16

+
+
+

23
14
19

1,677,326

+

11

+

17

50,869,000

+

4

+

8

LOUISIANA
B a to n R o u g e * .........
L a k e C h a r l e s * .........
N e w O r l e a n s ...........

+ 51
+
+

18
10

M ISSISSIPPI
H a t t i e s b u r g .............
J a c k s o n ......................
M e r id ia n ....................
V ic k s b u r g ..................

8
+
+ 17
7
+
+ 68

TENNESSEE
C h a t t a n o o g a ...........
K n o x v ille ....................
N a s h v ill e ....................

SIXTH DISTRICT
26 C i t i e s ....................

UNITED STATES

*N o in lu d e d in
Digitizedt for cFRASER t o t a l s .


Georgia alone approximately 150,000 bales of cotton were
picked by city and rural school children and business people.
This assistance not only promoted earlier harvesting of the
crop but resulted in an estimated saving of from $5 to $15
per bale by reason of getting the cotton picked and out of the
fields before it could be damaged by rain.
W holesale Trade: October sales by Sixth District whole­
sale firms increased 7 per cent over September and were 8
per cent greater than in October last year. Wholesale trade
usually reaches a peak in October and the increase over Sep­
tember this year was larger than the long-time average of
about 3 per cent. The increase of 8 per cent over October
1941 represents about the same volume of goods moving to
the retailers as, according to the wholesale price index of the
United States Bureau of Labor Statistics, wholesale prices in
October were about 8 per cent above those that prevailed a
year ago. Declines compared with October 1941 were reported
by wholesalers dealing in automotive supplies, electrical
goods, meats and meat products, hardware, machinery and
equipment and paper products, most of which involve essen­
tial materials, but these decreases were more than offset in the
total by increases in other lines. In the first ten months of the
year total sales by reporting wholesale firms in this District
have been 12 per cent larger than in that part of last year—
first quarter sales were up 27 per cent, second quarter sales
were 11 per cent larger, and third quarter sales averaged only
5 per cent above those a year ago.
October inventories reported by wholesale firms were down
7 per cent from September and were 27 per cent smaller than
a year earlier. Beginning in July, wholesale stocks have shown
progressively larger decreases compared with corresponding
months last year, reflecting the inability to obtain many of
the things whose manufacture has been discontinued or re­
stricted as a part of the war effort.
Retail Trade: Department store sales in the District in
November, as in preceding months, registered increases as
compared with a year ago. For the four weeks ending No­
vember 21, sales of 26 reporting department stores were 10
per cent greater than for the four weeks ending November
2 2 , 1941. For the single week ending November 21, 1942,
sales of the 26 reporting department stores were 16 per cent
higher than for the corresponding week of 1941. Atlanta
with 4 stores showed an increase of 20 per cent; Nashville
with 4 stores showed an increase of 20 per cent; and Miami
with 3 stores showed an increase of 18 per cent.
Increases of dollar volume, it should be recognized, are
deceptive in nature. Buyers, as well as sellers, realize that
many staple retail lines are moving well along towards full
liquidation, and that the time is rapidly approaching when
people with fat purses will besiege stores with lean shelves.
Based on the reports from 22 department stores of the Dis­
trict, sales will presently exhaust stocks in many important
lines. October sales of women’s hosiery, for example, were
55 per cent greater than for October 1941 and stocks at the
end of the month were 47 per cent lower. Sales of silks,
rayons and velvets were 23 per cent greater and stocks were
8 per cent lower. Sales of cameras were 29 per cent smaller
and stocks were 61 per cent lower. Sales of mechanical re­
frigerators were 43 per cent lower and stocks were 96 per
cent lower. There are numerous exceptions to this trend, of
course, but if sales continue to increase and the possibility

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of the Federal Reserve B a n k of Atlanta for November 1942

of replacement becomes more and more remote, the con­
tinued upward movement in retail department store sales
will presently be checked, if not, indeed, turned downward.
In the meantime, retailers are faced with ever-increasing
merchandising difficulties. Restrictions of the Office of De­
fense Transportation have seriously complicated the delivery
problem. Not only did an order earlier in the year reduce
mileage of delivery cars by 25 per cent, but an order that
will shortly become effective requires a Certificate of War
Necessity for the operation of any commercial vehicle. De­
veloping shortages and drastically reduced delivery facilities
must be dealt with at a time when the merchants are ex­
periencing increased business activity and anticipating the
greatest Christmas shopping season in history.
Another serious difficulty arises from personnel shortages,
some department stores reporting a labor turnover of as much
as 25 per cent or more during a single month. Inexperienced
sales clerks and inexperienced delivery men exasperate pur­
chasers and store operators alike. Such exasperation, how­
ever, is merely another sign that the war is completely em­
bracing civilian life.
Sales of reporting furniture stores for the month of Oc­
tober show an increase of 7 per cent over October of a year
ago. Stocks of reporting retail furniture stores, also, are
above last year, being actually 5 per cent higher. As in the
case of the department stores, the furniture stores also face
difficulties in replacements. It is of course true that all lines
of retail trade face this difficulty. The situation obviously
calls for a much wider extension of Government rationing of
commodities for which prospective shortages are imminent.
Pending application of such controls, retail establishments
will in many instances be compelled to adopt shorter open
hours, to curtail delivery service, to develop group purchas­
ing practices, and to eliminate extra services such as gift
wrapping, fancy decorations, and special sales promotion
activities.
Industry: On November 20 the first 10,500 ton Liberty ship
was launched from the new shipyard in Savannah and
christened the “S. S. James Oglethorpe.” This event marks
an important expansion of the shipbuilding activities of the
District. In October eight of the 93 merchant ships delivered
in the wartime building program were built in District ship­
yards. According to public announcement of the Maritime
Commission, the Alabama Dry Dock and Shipbuilding Com­
pany at Mobile completed two vessels during October; the
Gulf Shipbuilding Corporation in Mobile completed one;
the Delta Shipbuilding Corporation in New Orleans com­
pleted four; and the Engle Shipbuilding Corporation in
Pascagoula completed one.
In November, the Higgins shipyard in New Orleans re­
ceived contracts for 1200 cargo planes to cost $180 million.
The contract will also involve the construction of $30 million
worth of plant. The planes, based on the Curtis Commando
type, will use many wooden materials, will have six engines,
a 300-foot wingspread, and a normal pay load of 100 tons.
As the war production program expands and the demand
for raw materials consequently grows apace, new sources of
material supply are being developed. An instance of this is
the rapid development of iron ore mining in North Georgia.
The output this year is estimated at one million tons as com­
pared with 300 tons in 1933. The ore is shipped to Birming­
ham for conversion into steel.
(Continued on next page)




8 1

UNITED STATES TREASURY ISSUES : SUBSCRIPTIONS AND
ALLOTMENTS IN THE SIXTH FEDERAL RESERVE DISTRICT
OCTOBER 21 - NOVEMBER 25. 1942.
TREASURY BILLS
D a ted

T e n d e rs

A llotm ents

O c to b e r 21, 1942............................................
O c to b e r 28, 1942............................................
N o v e m b e r 4, 1942........................................
N o v e m b e r 12, 1942........................................
N o v e m b e r 18, 1942........................................

|

$ 22,415,000
24,680,000
4.960.000
14.835.000
23.690.000
15.915.000

$ 9,405,000
18.708.000
3.355.000
6.385.000
13,473,000
6.954.000

T O T A L .........................................................

$106,495,000

$58,280,000

Vs P e r C en t C ertificates ol In d e b te d n e ss, S e rie s D-1943
D ated N ovem ber 2. 1942; D ue N ovem ber 1, 1943
S u b scrip tio n s

A llotm ents

A tla n ta ..................................................................

$60,886,000
20,391,000

$36,276,000
11,920,000

TO T A L .........................................................

$81,277,000

$48,196,000

SALES O F UNITED STATES WAR SAVINGS BONDS IN THE
SIXTH FEDERAL RESERVE DISTRICT
S ales R ep o rted in P erio d O cto b er 24 - N ovem ber 23, 1942
At Issu e Price
S eries E

S eries F a n d G

Total

T O T A L ........................

$27,839,444

$8,744,645

$36,584,089

A la b a m a ....................

5,741,400
4,866,638
6,071,812
4,784,744
2,153,906
4,220,944

1,091,518
2,220,931
2,189,159
1,372,957
762,624
1,107,456

6,832,918
7,087,569
8,260,972
6,157,701
2,916,530
5,328,400

L o u is ia n a * .................
M is s is s ip p i* .............
T e n n e s s e e * ...............

‘ T h e s e f ig u r e s a p p l y o n ly to th a t p a r t of th e s ta te ly in g w ith in th e S ix th
F e d e r a l R e s e r v e D is tric t.

WHOLESALE SALES AND INVENTORIES— OCTOBER. 1942
SALES
P e rc e n t
C h a n g e From
S ept.
O ct.
Firm s
1942
1941
A u to m o tiv e S u p p l i e s .............
5 _ 12 _ 21
D r u g s a n d S u n d r i e s .............
D ry G o o d s .................................
E le c tric a l G o o d s ......................
F r e s h F r u its & V e g e t a b l e s . .
M e a ts a n d M e a t P r o d u c ts .
G r o c e r i e s .....................................
H a r d w a r e .....................................
M a c h in e ry a n d E q u ip m e n t.
P a p e r P r o d u c ts ........................
T o b a c c o P r o d u c t s ....................
M is c e lla n e o u s ...........................
T o t a l..............................................
S o u rce :

3
6
11
7
7
3
43

+
+
-h
+
+

35
4
10
1
25

+

1

21

•f
+

5

+

21

—
+
4-

4
8
1
9
22

142

-F

7

4
6

b

+
+

INVENTORIES
P e rc e n t
C h a n g e From
S ept.
Oct.
1942
Firm s
1941
-

14

—
-h

21
55
60

3
7
4

-

28
24
16

1
7

-

7
27

-

6
5
3

—
-t-

21
12
23

+
-

18
65

?R
5fi
4
+ 20
2
— 19
— 16
20
+
f 24
-H 8
+

3

17
10
3

26
13
44

3

-

U. S. D e p a r tm e n t of C o m m e rc e .

OPERATIONS O F CONSUMER CREDIT AGENCIES
IN THE SIXTH FEDERAL RESERVE DISTRICT
P e rc e n ta g e C h an g e Sept.
1942 to O ct. 1942
V olum e
F e d e r a l C r e d it U n io n s ................................................
S ta te C r e d it U n io n s .....................................................
I n d u s tr ia l B a n k in g C o m p a n ie s ...............................
P e r s o n a l F in a n c e C o m p a n ie s .................................
1.

R e ta il in s ta lm e n t p a p e r p u r c h a s e d
(a ) A u to m o tiv e ................................................

—
—
—

D ire c t r e ta il in s ta lm e n t lo a n s
(a ) A u to m o tiv e ................................................

3.

R e p a ir a n d m o d e r n iz a tio n lo a n s
( a ) F H A , T itle I, C la s s I ..........................

4.
5.

P e r s o n a l in s ta lm e n t c a s h l o a n s .............
T o t a l......................................................................

—
—

—

6.5
6.5
8.9
5.2

11.8
1.6

—

—

15.6
20.1

17.0
44.8

—
—

10.0
1.5

15.2
517.7
18.1
—
15.0

—
—
—
—

7.0
2.6
5.9
11.4

—
—

—
—
+

‘ In c lu d e s 37 b a n k s.

O ut3tandings

—

+

2.

14.4
29.9
7.8

—

8 2

M

o n t h l y

of the Federal Reserve B a n k of Atlanta for November 1942

R e v ie w

SIXTH DISTRICT BUSINESS INDEXES
D e p artm e n t S to re Sales*
(1935-39 A v e r a g e =

100)
U n a d ju s te d

A d ju s te d * *

D IS T R IC T .............
A tla n ta ................
B a to n R o u g e ..
B ir m in g h a m . . .
C h a tta n o o g a ..
J a c k s o n .............
J a c k s o n v il le .. .
K n o x v ille ...........
M a c o n ................
M ia m i..................
M o n tg o m e r y ..
N a s h v ill e ...........
N ew O r le a n s ..
T a m p a ................

S e p t.
1942
161
149
179
155
165
206
210
151
210
135
197
133
160
195

O c t.
1942
173
159
175
159
182
221
219
160
214
151
198
141
154
220

O c t.
1942
183
162
207
179
193
245
248
166
240
121
210
148
159
214

O c t.
1941
137
135
131
117
150
177
152
140
150
131
163
118
117
158

S e p t.
1942
171
166
207
160
185
233
215
164
226
111
213
139
163
185

O c t.
1941
145
138
154
131
159
196
172
148
168
107
173
125
121
153

D e p artm e n t S to re Stocks
(1935-39 A v e r a g e =

100)

A d ju s te d * *
O c t.
1942
166
197
157
143
193
165

D IS T R IC T .............
A tla n ta ...............
B ir m in g h a m .. .
M o n tg o m e r y ..
N a s h v ill e ...........
N ew O r le a n s ..

S e p t.
1942
177
210
179
144
206
167

U n a d ju s te d
O c t.
1941
155
181
154
146
177
148

O c t.
1942
186
231
177
162
221
186

C o tto n C onsum ption*

S e p t.
1942
187
224
182
161
223
175

O c t.
1941
174
213
173
165
203
167

C oal P roduction*

(1923-25 A v e r a g e =

(1935-39 A v e r a g e == 100)

O c t.
1942
268
326
248
220

T O T A L ....................
A la b a m a ...........
G e o r g i a ...........
T e n n e s s e e ___

100)
O c t.
1941
251
303
232
222

O c t.
1942
160
163

S e p t.
1942
285
327
271
247

D IS T R IC T ...
R e s id e n tia l
O t h e r s ___
A la b a m a ..
F l o r i d a ___
G e o r g ia ...
L o u i s i a n a ..
M is s is s ip p i
T en n essee.

O c t.
1941
415
148
593
931
217
542
156
129
610

158

G a s o lin e T a x
C o lle c tio n s
(1939 M o n th ly
A v e r a g e = 100)

(1923-25
A v e r a g e = 100)
S e p t.
1942
213
65
311
34
133
398
73
1,353
147

O c t.
1941
133
122

158

152

C o n stru ctio n C o n tra c ts

O c t.
1942
420
188
574
528
235
288
507
493
809

S e p t.
1942
165
168

D IS T R IC T .. . .
A l a b a m a ...
F lo r id a .........
G e o rg ia . . . .
L o u i s i a n a ..
M is s i s s i p p i.
T en n essee.

S e p t.
1942
102
124
73
81
105
111
137

O c t.
1942
99
125
73
84
108
109
118

O c t.
1941
125
143
103
124
137
130
127

E le c tric P o w e r
P ro d u c tio n *
(1935-39
A v e r a g e = 100)

* I n d e x e s o f d e p a r t m e n t s to r e
s a le s , e le c tr ic p o w e r a n d
c o a l p r o d u c tio n , a n d of
c o tto n c o n s u m p tio n a r e o n
a d a i ly a v e r a g e b a s is .
** A d ju s te d fo r s e a s o n a l v a r ia ­
tio n .
B a c k f ig u r e s fo r d e p a rt m e n t
s to r e s a le s a n d s to c k s in
t h e n e w s e r ie s w ill b e fu r­
n is h e d u p o n re q u e s t.

O c t.
12*12

S e p t.
1942
218

SIX STA T E S ..
H y d ro -g en ­
e r a t e d . ..
F u e l- g e n e r a t e d . ..

O ct.
1941
173

223

110

213

257

FARM INCOME IN THE SIXTH DISTRICT
(In T h o u sa n d s of D ollars)
S e p t.
1942

SIX STA TES

,,
A la b a m a .............
F l o r i d a ...............
G e o r g i a .............
L o u i s i a n a ...........
M is s i s s i p p i___
T e n n e s s e e .........

A ug.
1942

S e p t.
1941

175,090
27,806
5,604
34,761
25,326
55,789
25,804

73,317
27,988
6,653
25,224
8,813
11,417
13,222

122,468
21,542
3,768
27,011
13,237
38,792
18,118




Y e a r t o D a te
1942
733,579
89,702
139,911
135,337
97,361
129,730
141,538

1941
520,117
67,751
96,121
95,546
67,579
91,371
101,749

Near Orlando, Florida, the first vegetable dehydration
plant in the Southeast is being constructed at a cost of
$1,500,000.
Labor Supply and Dem and: In October the employed
labor force of the United States rose to 52.4 million persons,
of whom 10.5 million were employed in agriculture and 41.9
million in other employment, chiefly manufacturing and
transportation. Very significantly, the number of female
laborers employed in agriculture was 66 per cent greater in
October as compared with October 1941, while the number
of male agricultural workers increased only 7.2 per cent over
the same 12-month period. In nonagricultural employment
the number of male workers actually declined by 1.4 per
cent between October 1941 and October 1942 while the num­
ber of female workers rose 12.4 per cent.
While no exactly comparable figures are available for the
Sixth District, certain nonstatistical factors seem to support
the conclusion that a similar development has been taking
place in this area over the past year; namely, a loss of male
workers to the armed forces and a very large increase in the
number of women employed in both industry and agriculture.
On the whole, the developing labor shortage is less acute in
this Federal Reserve District than in the nation as a whole.
Data collected by the Federal Bureau of Employment Security
indicated that in September only four of the 40 industrial
areas surveyed in this District had general labor shortages.
However, seven other industrial areas were approaching a
condition of labor shortage in September. The Bureau of
Employment Security surveys covered all cities of 25,000
population and over, and, in addition, some cities of smaller
size. In classifying the communities, the adequacy of the
amount of labor available with relation to the total labor
needs in the community was considered, although no special
correction was made to reflect employers’ hiring specifica­
tions regarding skill or race.
In general, it may be said that major industrial labor
shortages in this Federal Reserve District are concentrated
near the shipyard developments. While in the United States
as a whole 87 per cent of the communities surveyed by the
Bureau of Employment Security were already in a condition
of labor shortage or were approaching that situation by Sep­
tember, the same was true of only 28 per cent of the com­
munities surveyed in the Sixth Federal Reserve District.
There has been a shortage of farm labor in many parts of
the District throughout most of the 1942 growing season.
Particularly illustrative of this situation is the condition in
Florida’s winter vegetable belt. In October, William L. Wil­
son, Director of Florida State Farmers Markets, stated that
“labor still presents the greatest problem” in the production
of vegetables this Autumn and Winter. Of Florida City, he
reported that “the labor situation is so critical that farmers
are afraid to plant until they are certain of help to make
their crops.” Severe labor shortages also exist in South
Florida where in ordinary years 25,000 to 50,000 workers are
required to pick the fruit. In November seven southern
governors met in Nashville and agreed to cooperate re­
ciprocally in waiving laws hindering the recruiting of labor
so that the United States Employment Service might be
better able to recruit farm labor and move it to shortage
areas to aid in harvesting operations. Plans are being
formulated to bring several thousand agricultural laborers

M

o n t h l y

R e v ie w

of the Federal Reserve B a n k of Atlanta for November 1942

from the Bahamas to Florida to aid in alleviating the
situation.
Consumer Credit: The volume of consumer credit in the
Sixth District continues the downward decline that has been
reported in previous months. The declines that have been ex­
perienced reflect in some degree the application of the Board
of Governors’ Regulation W although numerous other factors
are perhaps of equal or even greater importance.
In its administration of Regulation W the Board of Gov­
ernors reached an important milestone when, because of ad­
mitted violations, it ordered the closing of the eight furni­
ture stores operated by Otis Clark, Fred Clark, and Mrs. Otis
Clark of Chattanooga, Tennessee, for the period from No­
vember 22 to November 28, inclusive. The violations as an­
nounced by the Board of Governors consisted of failure to
obtain required down payments, to deliver proper statements
of transactions to the customer, to schedule periodic pay­
ments in the required amounts, and to require customers to
agree to pay their charge accounts before the tenth day of
the second calendar month following the sale. It was further
alleged that charge accounts were used as means of evasion
in selling articles in reality on the instalment plan. All of
the stores operated by Clark Brothers—six in Chattanooga,
one in Dalton, Georgia, and another in Lafayette, Georgia—
are located within the Sixth Federal Reserve District. All of
the Reserve banks, acting in behalf of the Board of Gov­
ernors, now maintain active field forces for the purpose of
obtaining compliance with the provisions of Regulation W.
W artime Financing: During the month the Treasury an­
nounced that its December financing program would involve
borrowing approximately $9 billion from all sources. A part
of this sum will be obtained from the continuing sale of War
Savings Bonds and Tax Savings Notes. The major part of the
$9 billion borrowed, however, will be derived from the sale
of three new series: (a) the series of 21/2 per cent bonds due
December 15, 1968; (b) the series of 1% per cent bonds
due June 15, 1948; and (c) the series of % per cent Certifi­
cates of Indebtedness due December 1, 1943.
The new Treasury issues offer certain special features. In
order to achieve its announced policy of obtaining approxi­
mately half of the $9 billion from nonbanking investors, the




8 3

Treasury has excluded commercial banks from ownership
of the new 2^2 per cent bonds until ten years after date of
the issue. The Treasury further limits sales to commercial
banks to about $2 billion for each of the other two series,
although applications up to $100,000 for an individual com­
mercial bank will be allotted in full for each issue. Sub­
scription books will be kept open for several weeks with
respect to the subscriptions of nonbanking investors. In the
case of subscriptions by banks, the opening date was set at
November 30 on the 1% per cent bonds, and at December
16 on the % per cent certificates, with closing dates set at
December 2 and December 18, respectively. The 2V2 Per cent
bonds and the 1% per cent bonds are issued in coupon or
registered form, while the % per cent certificates are issued
in coupon form only. The denominations of the 2V2 per cent
bonds and of the 1% per cent bonds range from $500 to
$100,000, and the denominations of the certificates from
$1,000 to $100,000. All three series are dated December 1,
1942, and bear interest from that date. The Treasury an­
nounces that, after the completion of this borrowing opera­
tion, it does not expect to do further major financing until
February.
An intensive campaign to sell the new Treasury issues has
been organized under the direction of the 12 District Victory
Fund Committees. In the Sixth District the chairman of the
Victory Fund Committee is William S. McLarin, Jr., Presi­
dent of the Federal Reserve Bank of Atlanta. Serving as ex­
ecutive manager is J. A. Space, formerly of the securities
firm of Johnson, Lane, Space and Company of Savannah.
Serving as assistant executive manager is William C. Wardlaw, Jr., formerly of the securities firm of Fleet and Wardlaw, Inc. of Atlanta. Offices of the committee have also been
opened at the New Orleans, Birmingham, Jacksonville, and
Nashville branches of the Federal Reserve Bank of Atlanta.
In his capacity as chairman of the Victory Fund Com­
mittee, Mr. McLarin sent a letter to all banks in the Sixth
District calling attention to the imperative necessity that the
securities of the Government be purchased by all persons,
businesses and institutions having funds at their disposal. He
urged the banks to canvass their depositors for prospective
purchasers in order that every possible dollar be derived
from subscriptions from nonbanking investors.
C O S T O F L IV IN G

8 4

M

o n t h l y

R e v ie w

of the Federal Reserve B a n k of Atlanta for November 1942

The N atio n al Business S ituation
(Prepared by the Board of Governors of the Federal Reserve System)
Industrial output expanded further in October and the first
half of November. Retail food prices continued to advance
while prices of other commodities generally showed little
change. Distribution of commodities to consumers was main­
tained in large volume.
Production: Industrial production continued to advance in
October and the Board’s seasonally adjusted index rose 3
points to 188 per cent of the 1935-1939 average. Gains in
armament production accounted for most of the increase, and
it is estimated that currently well over 50 per cent of total in­
dustrial output is for war purposes. In lines producing dur­
able manufactures, approximately 80 per cent of output now
consists of products essential to the war effort.
Steel output reached a new high level in October as produc­
tion expanded to 100 per cent of rated capacity. In the first
half of November output declined slightly to around 99 per
cent, reflecting some shutdowns for furnace repairs, according
to trade reports. Activity in industries producing nondurable
goods declined less than seasonally in October. Production of
foods, especially canning, was unusually large for this time
of year and output of textiles continued at a high level. Min­
eral production, which usually increases in October, declined
slightly this year owing chiefly to a decrease in coal produc­
tion which had been maintained in large volume throughout
the summer.
Value of construction contracts awarded in October in­
creased somewhat over that of September, according to re­
ports of the F. W. Dodge Corporation. Publicly-financed proj­
ects continued to account for over 90 per cent of total awards.
The Department of Commerce estimates that, in the third
quarter of 1942, expenditures for new construction amounted
to $4.2 billion, of which $3.5 billion came from public funds.
For the first nine months of this year the corresponding fig­
ures were $10.2 and $7.7 billion. Construction of military and
naval facilities and of industrial buildings accounted for the
bulk of the expenditures.
Distribution: Department store sales increased in October
and the Board’s seasonally adjusted index rose to 129 per cent
of the 1923-1925 average as compared with 123 in September
and 130 in August. In the first half of November sales in­

DP RMN S OE S LS ADSOK
EAT E T T R AE N T C S

F e d e r a l R e s e r v e m o n th ly in d e x e s o f v a l u e of s a le s
a n d s to c k s , a d j u s t e d f o r s e a s o n a l v a r ia tio n . 192325
v e a g e = 100.
Digitized afor rFRASER L a te s t f ig u r e s s h o w n a r e fo r
O c to b e r 1942.



creased further and were 17 per cent larger than in the corre­
sponding period last year, reflecting in part price advances of
about 10 per cent.
Railroad shipments of freight were maintained in large vol­
ume during October and declined seasonally in the first half
of November.
Commodity Prices: Retail food prices continued to advance
sharply from the middle of September to the middle of Octo­
ber and further increases are indicated in November. Prices
of most other goods and services increased slightly in this
period. In the early part of October maximum price controls
were established for a number of additional foods. Maximum
price levels for many other food products have been raised,
however, and the Office of Price Administration reports on the
basis of a recent survey that in numerous instances sellers are
not complying fully with the regulations now in effect.
Bank Credit: Excess reserves of member banks were $2.5
billion in the middle of November, a somewhat higher level
than generally prevailed in the preceding four months. At
New York City banks excess reserves amounted to about $500
million.
Additions to member bank reserve balances during the
four weeks ending November 18 were the net result of an in­
crease of $500 million in Reserve Bank holdings of Govern­
ment obligations, which approximately covered the continued
heavy currency drain, and a decrease of $200 million in
Treasury balances at the Reserve Banks.
Holdings of Government securities by reporting banks in
101 cities increased $1.9 billion to $24 billion during the
four weeks ending November 11. Almost half of the increase
occurred at New York City banks. There were substantial in­
creases in holdings of Treasury notes, bonds, and certificates,
and a smaller increase in Treasury bills, while holdings of
guaranteed obligations declined. These changes reflected new
offerings and retirements by the Treasury during the period.
Commercial and industrial loans at reporting member
banks in leading cities increased somewhat during the first
two weeks of November. Brokers’ loans in New York City in­
creased around Government financing dates, but subsequently
declined.

INUT IA P OUT N
DS R L RDCIO

1936 1937 1938 1939 1940

C S O L IN
OT F IV G

1941 1942

F e d e r a l R e s e r v e m o n th ly in d e x o f p h y s ic a l v o lu m e
of p r o d u c tio n , a d j u s t e d fo r s e a s o n a l v a r ia tio n ,
1935-39 a v e r a g e = 100. L a te s t f ig u r e s h o w n is
fo r O c to b e r 1942.

B u r e a u o i L a b o r S ta t is tic s ' in d e x e s . 1935-39 a v e r ­
a g e = 100. F if te e n th o l m o n th f ig u r e s . L a st m o n th
i n e a c h c a le n d a r q u a r t e r th r o u g h S e p te m b e r 1940.
m o n th ly t h e r e a f te r . L a te s t f ig u r e s s h o w n a r e fo r
O c to b e r 1942.