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Atlanta, Georgia, November 30, 1947
Volume XXXII
L
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Number 11
Bank Credit for Farm Production
or many years commercial banks have supplied the Sixth
District farmers with most of their production credit.
F
Although production-credit associations and retail mer
chants and other persons are important sources of short-term
loans for some farmers, they provide only about 40 percent
of the total production credit used by farmers.
At the middle of this year District banks had outstanding
more than 200,000 loans to farmers that were not secured
by farm real estate. Although these loans amounted to al
most 85 million dollars, they constituted only 5 percent of
the total loans outstanding at all insured commercial banks.
The aggregate figures obscure the importance that non-realestate farm loans have for some of die banks. They consti
tute, for instance, a large portion of the total earning assets
of many small banks.
The total amount of non-real-estate farm loans that Dis
trict banks held was about 9 percent larger in mid-1947 than
it was a year earlier. This increase is part of a trend that
began during the war. During the past few years farmers’
production costs have increased steadily. Furthermore, since
the end of the war more production goods, such as machin
ery, have again become available. As a result farmers are
borrowing larger amounts at a time and more of them are
apparently using short-term credit. Despite the recent increase
in total volume of farm-production loans, the volume of
non-real-estate farm debt is low in relation to farm income
and value of assets. In fact the entire debt position of Dis
trict farmers is relatively favorable. The bankers and farmers,
of course, concern themselves with problems other than those
which might arise from an over-extension of farm-production
type of credit. Particularly to the small banks in rural areas
are the farmers the most important group of customers. In
order to serve adequately their farm customers and to meet
competition for this loan business from other sources, they
must be prepared to provide production credit in the amounts
and under the conditions needed. To farmers in general pro
duction credit is a means of obtaining the working capital
they need. For the individual, the amount of such credit
available and the terms and conditions under which it can
be obtained may vitally affect his success in the way that
the amount and quality of land or the amount and cost of
labor does.
The problem of production credit is a dynamic one for
Sixth District farmers. Compared to farming in the rest of
the nation, District agriculture is characterized by a low
productivity per worker and a small amount of capital per
worker. Evidence that farmers are beginning to substitute
capital for labor in more-extensive farming systems is grow
ing. If a really prosperous agriculture is to be attained, the
trend toward more capital per worker must continue and
much of the new capital must come from the banks in the
form of farm-production loans.
In evaluating bank credit for farm production from the
bankers’ and farmers’ standpoint as well as its ability to
facilitate needed changes in farming systems more detailed
information is needed than that given in routine reports. An
understanding of development in non-real-estate farm lending
requires, among other things, information on the character
istics of short-term loans to farmers and typical lending prac
tices in farm financing. Present lending practices also may
give some indication of the ability and willingness of banks
to meet anticipated changes in farm credit needs. To supply
some of this information needed for a better understanding
of short-term production credit for farmers the Federal Re
serve Banks and the Federal Deposit Insurance Corporation
conducted a joint survey as of June 30 at a sample group of
member and nonmember banks.
These figures show that small banks supply farmers with
most of their bank credit that is not secured by farm real
estate. Of the total number of farm-production loans held by
banks, more than a third was held by banks with deposits
of less than two million dollars. These and other banks
with deposits of less than 10 million dollars held four fifths
of all reported farm-production loans. Since the average size
of the loans held by all sizes of banks was virtually the
same, banks with total deposits of less than 10 million dollars
held also about four fifths of the total dollar volume out
standing on these loans.
In the number of loans the District’s large banks, those
having total deposits in excess of 10 million dollars, are
more important sources of farm-production credit, however,
than are the large banks over the nation as a whole* The
latter held only 8 percent of the total number of farmproduction loans outstanding, whereas the former held 20
percent of the total number in the District. Although the
loans held by small banks over the entire nation were rela
tively small, in the District the size of the loans appeared
to have little or no relationship to the size of the bank.
Apparently the smaller District banks are making loans in
a wide range of sizes on terms that are competitive with those
of the larger banks.
For both the District and the nation, however, there were
tendencies for small farmers to borrow at small banks and
large borrowers at large banks. These tendencies were much
130
M o n t h ly R e v ie w
o f
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 ta
f o r
N o v e m
b e r
1 9 4 7
FA H M P R O D U C T IO N L O A N S O F IN SU R ED C O M M E R C IA L BANKS O U T ST A N D IN G IN M ID -I9 4 7
BY N ET W O R T H O F B O R R O W E R A N D S IZ E O F BA NK
S iz e o f b a n k
(D e p o s its in m illio n s o f d o ll a r s )
N e t w o r th of b o r r o w e r
A ll B a n k s
L e s s th a n 2
2 to 1 0
10 a n d o v e r
10 a n d o v e r
N um ber
U n d e r $ 2 ,0 0 0 _____
$ 2 ,0 0 0 - 1 9 ,9 9 9 .............
$ 1 0 ,0 0 0 - 3 2 4 ,9 9 9 ....
$ 2 5 ,0 0 0 - 5 9 9 ,9 9 9 ....
$ 1 0 0 ,0 0 0 a n d o v e r .
N o t c l a s s i f ie d ..........
1 0 3 ,6 6 6
A m o u n t (T h o u sa n d s )
328
1,1 6 1
$ 1 9 ,4 2 2
3 0 ,0 8 2
1 5 ,7 0 9
1 2 ,8 3 7
6 ,1 4 1
469
$ 7 ,4 1 5
1 1 /4 58
5 ,4 2 5
3 ,7 6 7
717
43
$ 9 ,1 0 1
1 3 ,7 6 3
7 ,7 3 7
6 ,2 8 9
4 ,3 6 1
$ 2 ,9 0 6
4 ,8 6 1
2 ,5 4 7
2 ,7 8 1
1 ,0 6 3
338
4 0 ,0 6 2
$ 8 4 ,6 6 0
$ 2 8 ,8 2 5
$ 4 1 ,3 3 9
$ 1 4 ,4 9 6
2 2 .9
3 5 .5
1 8 .6
1 5 .2
7 .3
0 .5
2 5 .7
3 9 .8
1 8 .8
1 3.1
2 .5
0;1
522.0
3 3 -3
1 8 .7
1 5 .2
1 0 .6
0 .2
2 0 .1
3 3 .5
117.6
19 a2
7 .3
2 .3
1 0 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
4 8 ,6 3 8
3 2 ,3 9 6
6 ,8 0 9
3 ,0 7 1
578
312
1 7 ,0 4 8
1 5 ,1 6 1
4 ,4 7 8
1 ,9 5 6
3 7 ,9 8 0
2 5 ,5 0 0
4 ,6 6 4
1 ,7 1 4
69
483
ALL B O R R O W E R S .
2 0 2 ,2 7 6
70,41Q
9 1 ,8 0 4
U n d e r $ 2 ,0 0 0 ......................................................
$ 2 ,0 0 0 - $ 9 , 9 9 9 ......................................................
$ 1 0 , 0 0 0 - $ 2 4 ,9 9 9 ............................ . . ...............
$ 2 5 , 0 0 0 - $ 9 9 ,9 9 9 .............................................. .
$ 1 0 0 ,0 0 0 a n d o v e r ......................................
N o t c l a s s i f ie d ......................................................
511.2
8 6 .1
7 .9
3 .3
0 .5
,1.0
5 4 .0
3 6 .2
6 .6
2 .4
0 .1
0 .7
5 3 .0
3 5 .3
7 .4
3 .4
0 .6
0.53
4 2 .6
3 7 .8
1 1 .2
4 .7
0 .8
2 .9
ALL B O R R O W E R S .........................................
1 0 0 .0
<100.0
1 0 0 .0
1 0 0 .0
713,057
1 5 ,9 5 1
6 ,6 7 1
975
1,886
88
P e r c e n t a g e D is tr ib u tio n
more pronounced over the nation than they were in the
District. At banks with deposits of less than two million dol
lars 25 percent of the farm-production loans in the nation
were made by borrowers whose net worth was less than
$2,000. This proportion declined to 16 percent at banks with
deposits of 10 million dollars and more. In the District the
proportion of loans made to borrowers with a net worth
of less than $2,000 ranged from 43 percent of all loans at
the large banks to 54 percent at the small banks. At the
large banks 20 percent of the number of loans and 46 per
cent of the amount outstanding involved borrowers with a net
worth of $10,000 and more, compared with 10 percent and
35 percent at the small banks. Throughout the country farmproduction credit is mainly local in nature, but in the District
this local aspect is even more marked. Most District farmers,
regardless of the size of their operations, apparently are
able to obtain the needed production credit from smaller
banks at terms comparable to those they can get at the
larger banks.
The survey shows also that a large proportion of farmproduction loans were extended to small farmers. More than
half the number of production loans at District banks, rep
resenting one fourth the total amount of such loans, were
made to farmers with a net worth of less than $2,000. The
District’s proportion of total loans made to small farmers
was about double the nation’s. Since small-scale farming pre
dominates in the District’s agriculture, it determines to a
large extent the nature and the problems of farm-production
credit. And since most of the farm borrowers have very
limited financial resources, most of their loans are small
with a relatively high degree of risk to the banks. The effect
on terms and conditions of loans is to make production credit
relatively inflexible and costly for the small-scale operator,
the very farm borrower who has by far the greatest need
for more capital. Most farmers have found it difficult to
break out of the circle of low incomes, low rates of savings,
and limited capital accumulation. Many bankers who serve
farmers may, therefore, be faced not only with the problem
of meeting their customers’ present needs but with that of
helping to bring about changes in farming that will permit
a more effective use of capital.
Bank credit to finance District farm operations is concen
trated in relatively few types of farming. Almost half the
short-term production loans outstanding were made to farm
ers who receive at least 50 percent of their income from
cotton. Only a twentieth of all production loans were made to
farmers who received at least 50 percent their income from
livestock or livestock products. General farms accounted for
about 25 percent of total loans.
More than two fifths of all production loans and a fifth
of the amount outstanding were to farmers with less than
70 acres of land each. About one in every 10 of the farmproduction loans outstanding was made to a cotton farmer
with less than 30 acres of land. Farmers with more than
500 acres of land each had, on the other hand, only a twen
tieth of the loans but more than a fourth of the total amount
of outstanding loans.
FARM P R O D U C T IO N LO A N S O F IN SU R ED C O M M ER C IA L BANKS
O U T ST A N D IN G IN M ID -1 9 4 7
BY TYPE O F FARM
T ype an d
s iz e o l fa rm
A m ount
N u m b e r (T h o u s a n d s )
P e rc e n ta g e
D is trib u tio n
N um ber A m ount
A v e ra g e
S iz e
C o tto n —a l l s i z e s .....................
S m a ll— u n d e r 3 0 a c r e s . .
M e d iu m —3 0 - 6 9 a c r e s . . .
L a rg e — 7 0 a c r e s
& m o r e .................................
U n c la s s ifie d — a l l s iz e s
G e n e r a l— a ll s i z e s . . . . . . . .
S m a ll— u n d e r 7 0 a c r e s . .
M e d iu m —7 0 -2 5 9 a c r e s . .
L a r g e —2 6 0 a c r e s
& m o r e . ....................... ..
U n c la s s if ie d — a ll s i z e s . .
O th e r c r o p s — a l l s i z e s . . . .
L iv e s to c k & liv e s to c k
P r o d u c ts — a ll s i z e s ..........
N o t c la s s if ie d — a ll s iz e s
9 7 ,6 2 6
1 9 ,7 7 8
4 2 ,2 1 0
$ 2 8 ,8 6 7
2 ,7 3 2
8 ,8 3 4
4 8 .3
9 .8
120.9
3 4 .1
3 .2
1 0 .4
296
138
209
3 3 ,4 4 8
2 ,1 9 0
5 5 ,8 6 1
1 6 ,0 4 5
2 2 ,6 3 2
1 6 ,8 6 4
447
2 3 ,7 0 6
2 ,8 9 1
8 ,5 6 7
1 6 .5
1.1
2 7 .6
7 .9
1 1 .2
1 9 .9
0 .5
2 8 .0
3 .4
10 .1
504
204
424
180
379
7 ,4 5 6
9 ,7 2 8
3 1 ,8 9 9
9 ,5 6 9
2 ,6 7 9
2 1 ,3 3 8
3 .7
4 .8
1 5 .8
1 1 .3
3 .2
2 5 .2
1 ,2 8 3
275
669
9 ,6 3 8
7 ,2 5 2
9 ,3 6 8
1 ,3 8 1
(4.7
Q .6
1,1.1
1 .6
972
190
ALL B O R R O W E R S ................
2 0 2 ,2 7 6
$ 8 4 ,6 6 0
1 0 0 .0
1 0 0 .0
419
Production loans to District farmers averaged about $400
in size, and those to farmers over the nation about $700.
Most District farmers are engaged in small-scale types of
farming. About three fifths of the loans were for less than
$250 each. Less than $500 was the most common size of loan
for all types of farms, but otherwise there was considerable
variation among the different types. Although about two
M o n t h ly R e v ie w
o f
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 ta
f o r
N o v e m
b e r
131
1 9 4 7
PERCENTAGE DISTRIBUTION O F FARM PRODUCTION LOANS O F INSURED COMMERCIAL BANKS
OUTSTANDING IN MID-1947
BY TENURE O F BORROWER AND SECURITY FO R LOAN
S e c u rity lo r lo a n
T e n u re
ol
N ot S e c u re d
N ot E n d o rse d
b o rro w e r
N ot
S e c u re d
E n d o rse d
G ro w in g
cro p s
L ivestock
M ach in ery
C om bination
of C rops
L ivestock or
M achinery
O th e r
S e c u rity
T otal
N um ber ol Loans
O w n e r , no, m o r t g a g e ............................................
O w n e r , m o r t g a g e ...................................................
T e n a n t o r c r o p p e r ...................................................
1 9 .8
1 2 .9
6 .7
7 .5
1 0 .3
1 4 .2
1 2 .0
1 5 .4
1 7 .2
3 .3
.1.9
4 .6
5 .1
3 .9
2 .9
4 6 .9
4 9 .5
4 9 .6
5 ,4
6 .1
4.'8
1 0 0 .0
1 0 0 .0
1 0 0 .0
ALL B O R R O W E R S ...................................................
1 2 .4
1 1 .2
1 4 .8
3 .6
4 .3
4 8 .6
5 .1
1 0 0 .0
O w n e r , n o m o r t g a g e ...........................................
O w n e r , m o r t g a g e ...................................................
T e n a n t o r c r o p p e r ............................ ......................
1 8 .2
1 0 .3
4 .1
5 -1
3 .9
1 0 .0
9 .8
1 3 .3
1 1 .2
12.8
0 .6
4 .0
>7.3
4 .0
6 .0
4 2 .6
5 7 .6
5 9 .1
1 4 .2
10 .3
5 .6
1 0 0 .0
>100.0
1 0 0 .0
ALL B O R R O W E R S ...................................................
1 1 .6
6 .5
1 0 .8
2 .4
6 .2
5 2 .2
1 0 .3
1 0 0 .0
A m ount of Loans
FARM PRODUCTION LOANS O F INSURED COMMERCIAL BANES OUTSTANDING IN MID-1947
B Y lfE T WORTH O F BORROWER AND INTEREST RATE
In te re s t ra te
N et w o rth of
b o rro w e r
U n d er 5
5-5.9
6-6.9
7-7.9
9 an d
O ver
8-8.9
Total
U n d er 5
5-5v9
N u m b er
U n d e r $ 2 ,0 0 0 ....................
$ 2 ,0 0 0 - 1 9 ,9 9 9 ....................
$ 1 0 ,0 0 0 - 5 2 4 ,9 9 9 ...............
$ 2 5 ,0 0 0 - $ 9 9 ,9 9 9 ................
$ 1 0 0 ,0 0 0 a n d o v e r ___
U n c la s s if ie d ....................
ALL B O R R O W E R S .. .
6-6.9
7-7.9
9 and
O v er
8-8.9
Total
A m ount (T h o u san d s)
729
87 1
236
560
256
44
902
2 ,0 6 6
913
1 ,1 0 4
252
415
2 3 ,0 0 2
2 6 ,9 4 0
9,3120
4 ,2 0 6
378
507
3 ,8 5 0
3 ,5 8 7
936
69
0
0
4 7 ,8 1 6
2 8 ,0 8 6
3 ,4 8 6
732
89
921
2 7 ,3 6 7
1 1 ,6 0 7
1 ,0 6 0
0
0
69
1 0 3 ,6 6 6
7 3 ,0 5 7
1 5 ,9 5 1
6 ,6 7 1
975
1 ,9 5 6
$
209
1 ,0 2 6
205
2 ,3 2 2
3 ,1 3 8
10
2 ,6 9 6
5 ,6 5 2
6 4 ,2 5 3
8 ,4 4 2
8 1 ,1 3 0
4 0 ,1 0 3
2 0 2 ,2 7 6
$ 6 ,9 1 0
$
295
1 ,9 8 4
1,3 9 1
1 ,4 7 2
842
71
$ 4 ,9 1 7
1 1 ,1 9 6
1 0 ,6 9 6
7 ,8 2 5
2 ,0 0 0
233
$ 1 ,2 0 4
1 ,4 9 2
582
420
$ 9 ,2 2 0
1.1,448
2 ,2 5 7
798
161
1 52
$ 3 ,5 7 7
2 ,9 3 6
578
"3
$ 1 9 ,4 2 2
3 0 ,0 8 2
1 5 ,7 0 9
1 2 ,8 3 7
6 ,1 4 1
469
$ 6 ,0 5 5
$ 3 6 ,8 6 7
$ 3 ,6 9 8
$ 2 4 ,0 3 6
$ 7 ,0 9 4
$ 8 4 ,6 6 0
P e rc e n ta g e D istrib u tio n
U n d e r $ 2 ,0 0 0 .....................
$ 2 ,0 0 0 - $ 9 ,9 9 9 ....................
$ 1 0 ,0 0 0 - $ 2 4 ,9 9 9 ...............
$ 2 5 ,0 0 0 - $ 9 9 ,9 9 9 ...............
$ 1 0 0 ,0 0 0 a n d o v e r ___
U n c la s s if ie d .....................
0 .7
1 .2
1 .5
8 .4
2 6 .3
2 .3
0 .9
2 .8
5 .7
1 6 .5
2 5 .8
2 1 .2
2 2 .2
3 6 .7
5 8 .4
6370
3 8 .8
2 5 .9
3 .7
4 .9
5 .9
1 .0
4 6 .1
3 8 .5
2 1 .9
1 1 .1
9 .1
4 7 .1
2 6 .4
1 5 .9
6 .6
1 .1
3 .4
1 .3
1 8 .1
5 1 .1
2 .1
1 .5
6 .6
8 .8
1 1 .5
1 3 .7
1 5,1
2 5 .3
3 7 .2
6 8 .1
6 0 .9
3 2 .6
4 9 .8
6 .2
4 .9
3 .7
3 ,3
4 7 .5
3 8 .1
1 4 .4
6 .2
2 .6
3 2 .4
1 8 .4
9 .8
3 .7
3 .5
'100.0
1 0 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
ilOO.O
‘.6
1 0 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
1 0 0 .0
ALL B O R R O W E R S ...
1 .3
2 .8
3(1.8
4 .2
4 0 .1
1 9 .8
1 0 0 .0
8 .2
7 ,1
4 3 .5
4 .4
2 8 .4
8 .4
1 0 0 .0
FARM PRODUCTION LOANS O F INSURED COMMERCIAL BANKS OUTSTANDING IN MID-1947
BY NET W ORTH O F BORROWER AND SECURITY FO R LOAN
S e c u rity for lo a n
N et w o rth
of b o rro w e r
(Not S e c u re d ;
N ot E n d o rse d
Not S e c u re d ;
E n d o rse d
L ivestock
G ro w in g
C ro p s
M ach in ery
C om bination of
C rops, Livestock,
a n d M achinery
O th er
S e c u rity
Total
N u m b er of L oans
U n d e r $ 2 , 0 0 0 . ................................................
$ 2 0 0 0 - y $ 9 9 ...................................................
$ 1 0 ,0 0 0 - 2 4 ,9 9 9 ....................... ...........................
$ 2 5 , 0 0 0 - 9 9 ,9 9 9 . ................................................
$ 1 0 0 0 0 0 a n d O v e r ......................................
U n c la s s if ie d .................. ...................................
6 ,5 0 7
1 1 ,1 5 6
4 ,5 1 7
2 ,1 8 3
360
376
1 2 ,7 9 1
6 ,5 6 6
1 ,9 7 2
528
41
717
1 7 ,0 3 9
1 0 ,7 0 3
1 ,5 2 0
488
41
166
4 ,2 0 5
2 ,7 1 0
128
133
89
41
2 ,1 9 1
4 ,6 1 5
1 ,0 1 5
255
ALL B O R R O W E R S ............................ .........
2 5 ,0 9 9
2 2 ,6 1 5
2 9 ,9 5 7
7 ,3 0 6
8 ,8 2 1
5 5 ,3 0 2
3 4 ,4 0 7
5 ,8 3 2
2 ,4 6 0
247
5 ,6 3 1
2 ,9 0 0
967
624
197
111
1 0 3 ,6 6 6
7 3 ,0 5 7
1 5 ,9 5 1
6 ,6 7 1
975
1 ,9 5 6
9 8 ,2 4 8
1 0 ,4 3 0
2 0 2 ,2 7 6
545
P e rc e n ta g e D istribution
U n d e r $ 2 ,0 0 0 ...................................................
$ 2 ,0 0 0 - 9 ,9 9 9 ..................................................... ..
$ 1 0 ,0 0 0 - 2 4 ,9 9 9 .......... ........................................
$ 2 5 ,0 0 0 - 9 9 ,9 9 9 ...................................................
$ 1 0 0 ,0 0 0 a n d O v e r ......................................
U n c la s s if ie d ............... - .................................
ALL B O R R O W E R S ......................................
2 .1
6 .3
6 .4
3 .8
6 .3
1 5 .3
2 8 .3
3 2 .7
3 6 .9
.19.2
1 2 .3
9 .0
1 2 .4
7 .9
4.25
3 6 .7
,16 .4
1 4 .6
9 .5
7 .3
4 .2
8 .4
4 .1
3 .7
0 .8
2 .0
9 .1
2 .1
2 7 .9
1 2 .4
1 1 .2
1 4 .8
3 .6
4 .3
5 3 .4
4 7 .,li
3 6 .5
3 6 .9
2 5 .4
5 .4
4 .0
6 .1
9 .4
2 0 .2
5 .7
>100.0
1 0 0 .0
1 0 0 .0
,1 0 0 .0
1 0 0 .0
1 0 0 .0
4 8 .6
5 .1
ilOO.O
132
M o n t h ly R e v ie w
o f
t h e
F e d e r a l
R e s e r v e
B < m k o f
A t l a n ta
f o r
N o v e m
b e r
1 9 4 7
FARM PRODUCTION LOANS O F INSURED COMMERCIAL BANKS OUTSTANDING IN M ID-1947
BY T O E O F FASEW AND SIZE O F LOAN
S h e of le a n s
T ype of farm
U n d er
250490
mo
500-
;
1,5002,499
1,0001,499
m
2,500
a n d O re l
All
Sixes
32*384
83,256
9J918
1 5 ,0 1 7
6,393
2,916
1,770
1 ,8 2 8
2 ,3 6 0
1 ,2 0 8
2 ,1 0 6
789
.1,762
484
1,306
134
4 0 ,6 1 2
2 1 ,9 6 8
8 ,5 4 4
ijm
1 1 9 ,5 7 1
ALL B O R R O W E R S ...
6 ,6 7 1
8 ,3 3 0 j
4 ,7 2 1
2 ,3 5 6
5 ,7 5 8 '
1,0001,499
1,50®2,499
2,500
a n d O ver
All
Sizes
$ 2 3 ,7 0 6
A m ount o f L oans (T h o u san d s)
ffaaafeer of L oans
G e n e r a l ...............................
C o tt o n ............... . .................
O th e r C r o p s ,
L iv e s to c k a n d
liv e s to c k p r o d u c t s ,
N ot c l a s s i f ie d ..................
500999
250499
U n d er
$259
2 jm \
1,302
5 5 ,8 6 1
9 7 ,6 2 6
3 1 ,8 9 9
$ 3 ,3 3 6
7302
1 ,8 7 7
884
44
1 ,0 4 0
43
9 ,6 0 8
7 ,2 5 2
341
5 51
6 ,0 1 2
5 ,5 6 9
2 0 2 ,2 7 6
$ 1 3 ,4 0 7
i;i8 2
$ 3 ,0 7 4
7 ,1 5 8 :
2 ,0 8 5
$ 2,883
$ 4 ,0 7 8
5 ,1 2 5
2 ,8 6 2 !
533
2321
1 ,0 G 6 :
267
$ 1 3 ,3 3 8
$ 1 3 ,0 8 2
1,8 7 1
2
$ 2/881
2 ,0 6 8
3 ,8 8 8
$ 7 ,4 4 9
Qjm
28,867
21,338
1 ,2 2 6
122
1 ,3 7 9
80
4 ,8 8 3
12 9
9 ,3 6 8
1J381
$ 1 0 ,2 9 6
$ 2 5 ,8 5 0
$ 8 4 ,6 6 0
1 2 .1
1 8 .2
3 1 .4
18*5
3 7 .7
■100.0
1 0 0 .0
$ 8 ,6 8 7
5,343
P e rc e n ta g e D istribution
G e n e r a l ......................... ....
C o tt o n ............... ................. !,
O th e r c r o p s .......................
L iv e s to c k a n d
liv e s to c k p r o d u c t s .
N ot C la s s if i e d ...............
ALL B O R R O W E R S ...
1 1 .9
8*5
1 4 .8
5 .2
1A
3 .2
1J2
6 .6
'3.6
4 7 ,1
1 7 ,8
2 2 ,4
2 0 .0
4 .1
a o o .o
1 0 0 ,0
1 0 0 .0
14.1
2 5 ,3
8 .8
1 3 .0
2 4 ,8
9 .8
3 0 .7
7 9 .4
1 7 .5
1 0 .9
1 8 .3
6 .7
1 3 .5
1 .8
9 .2
0 .6
1 0 .8
0 .6
ao o .o
.1 0 0 .0
0 .7
4 0 .0
5 9 .11
2 0 .1
1 0 .9
4.-2
3 .0
2 .7
ao o .o
1 5 .8
5 8 .3
64.8
<12
1 7 .2
1 7 .7
1 3 .4
1 2 .2
6 .5
12.1
'5.7
1 6 .8
1 0 .7
1 9 .3
13.1
8 .8
1 4 .7
5 .8
52 J
9 .3
1 0 0 .0
1 0 0 .0
1 5 .5
1 5 .7
1 0 .3
1 2 .2
3 0 .5
1 0 0 .0
1
in
.j
100*0
FARM PRODUCTION LOANS O F INSURED COMMERCIAL BANKS
OUTSTANDING IN MID-1947
BY PURPOSE AND SIZE O F LOAN
P u rp o se of lo an
U nder
$250
$250$499
$SOO$999
S h e of lo a n
$1,000-1 $1,500
$1,499 $2,499
FARM PRODUCTION LOANS O F INSURED COMMERCIAL BANKS
OUTSTANDING IN MUD-1947
BY SIZE O F FARM
$2,500 { AH
a n d Ovear f Sixes
N u m b er
P ay p ro d u c tio n
® l v i B g o ® r t e .. .
B ay m im prove
la n d ot b u ild in g s
Bwy m a c h in e ry
o r liv e s to c k . . . . . . .
R epay d e b t s . . . . . . .
ALL B O R R O W E R S .
9 6 ,5 3 0
8 1 ,2 9 6
15 $ 0 2 ;
1 ,2 3 4
663
sse
1 1 ,2 7 9
6 ,2 4 3
892
5 ,1 7 1
2,740
7,788
1 1 9,5 7 1
3J2S3
4 ,8 2 2 ^
43 7;
1,518
760
2 ,6 1 4
86
385
4 0 ,6 1 2
2 1 ,9 6 8
8 ,5 4 4
483
3 ,5 8 7
154* 490
354
3 ,4 0 4
164
2 ,0 5 4
42
499
1 ,4 1 9 1 2 8 ,9 8 0
209
4 ,4 5 2
L e s s th a n , 1 0 .............
1 0 - 2 9 ................................
3 0 - 6 9 ............. .................
3 ,4 2 7
2 4 ,1 1 6
61*017
$ 1 ,1 0 7
3 ,8 5 1
1 .7
1 1 .9
3 0 .2
1 .3
4 .5
1 5 .9
m
13,449
160
220
6 .9
8 .1
8 .1
6 ,0 1 2 !
5 ,5 6 9 1 202/278
7 0 - 1 3 9 ............... ...........
1 4 0 - 2 5 9 .........................
4 6 ,5 7 1
2 4 ,3 4 0
1 5 ,1 8 2
1 5 ,(B I
2 3 .0
1 2 .0
1 7 .9
1 7 .8
326
620
7 .5
6 .5
2 6 0 - 4 9 8 .......... ..............
5 0 0 a n d m o r e ..........
U n c la s s if ie d .
21,006
lU lS j
10,684;
8,5®6
22,m
10,950
P e rc e n ta g e D istrib u tio n
P ay p ro d u c tio n
or liv ia g c o s t s . ,»
B uy o r im prove
la n d o r b u ild in g s
B uy m a c h in ery
o f liv e s to c k ..........
R ep a y d e b t s . . . . . . .
Not k n o w n ................
ALL B O R R O W E R S .
62.4
2 0 .3
21
2.4
1 2 .8
4 .8
1 0 .4
1 0 0 .0
9 .7
5 .0
4 .7
4 0 0 .0
3 0 0 .0
aoo.o
2.7
1 0 0 .0
9 .7 J
3 .1
P e rc e n ta g e
N um
D istrib u tio n A verage Sise
ta o itn to f
of Loam j TUkioi
ber
In te re st
L oans (T ho u san d s) N um ber A m ount
Size of farm
(A cre#)
3 6 .3
19J5
16J2 *
3 8 .9
6 1 .6
7 1 .1
2 1 .5
2 0 .0
1 3 .9
1 7 .8
1 0 .9
6 .9
ft*9
3 ,5
7 ,1
.9
4 .6
5 9 .1
2 0 .1
1 0 .9
4 .2
0 .0
ALL B O R R O W ER S 202,276!
100.0
5,213
104
5 .5
5 .3
1 0 .1
2 6 .3
6 .2
767
'2.0 8 3
248
6 .8
&0
6 .6
$84,660
1 0 0 .0
m o
419
6 .9
FARM PRODUCTION LOAM S O P TW M lREn COMMERCIAL BANKS OUTSTANDING IN MID-1947
BY PURPOSE O F LOAN AUD MATURITY O F LOAN
P u rp o se of lo a n
3 M em ths
a n d Less
D em an d
3 to 6
M onths
1
I
6 to 9
M onths
M atu rity of lo a n
1 Y ear
9 M onths
a n d O ver
to 1 y e a r
I U nclassified |
1
ah
1 M aturities
P ast D ue
N um ber
B u y m a c h in e r y o r li v e s to c k ...............................
R e p a y d e b t s ....................................................................
J f S ^ G i i o w n ......
.............. ..
J
2,13®
161
591
44
202
ALL L O A N S ....................................................................
3429
P a y p ro d u c tio n o r fiv in a c o s t s .........................
Buy o r im p ro v e land. <S B u il d in g s ..................
!
’
■
1 5 4 ,4 9 0
2 ,0 7 4
2 0 ,4 5 5
1 ,0 6 0
5 ,9 1 3
1 ,6 0 2
4 ,4 9 7
4 2 ,5 2 4
1 ,3 7 8
8 ,9 9 4
1 ,0 9 4
3 ,0 4 8
6 4 ,8 5 4
250
4 ,9 2 2
530
1 ,2 0 0
1 6 ,4 1 3
426
6 ,1 4 0
778
5 ,0 5 6
1,246
984
128
1,1280
382
13 0
3 3 ,5 2 7
57/0S 8
7 1 ,7 5 6
2 5 ,0 0 3
2 ,8 8 4
5 ,8 4 1
3 ,0 9 8
|
2 0 2 ,2 7 6
3 .3
0
1 .9
0
Q.3
1 .4
€
2 .1
0 .9
3 .5
;
1 0 0 .0
1 0 0 .0
1 0 0 .0
T O .#
m o
2 .9
1.5
247
28,980
6CQ |
538
.
42
380
|
4,4S 2
1 0 ,9 S 0
P e rc e n ta g e D istrib u tio n
P a y p r o d u c t io n o r liv in g c o s t s .................. . ■
B u y o f im p ro v B la n d |6» B u il d in g s . . . . . . . J
B u y sBM chinery o r liT e a io c k ...............
R e p a y 4 ta b t s ...................................... ..........................
LOANS..................................... ..................
Digitized forALL
FRASER
1.8
1 3 .2
3 1 ,1
2 0 .4
3 6 .0
4U
2 7 .5
4 0 .5
3 1 .0
2 4 .6
2 7 .8
4 2 .0
7 .4
1 7 .0
1 1 .9
1 0 .9
1 0 ,6
1 2 .5
2 1 J2
173
1 1 .4
0 ,6
3 .7
4 .4
6 .1
il S
i.5
1 6 .6
Ml
3 5 .5
1 2 .4
1 .4
1 .4
4 .8
2 .0
1 .0
.
1
aoo.o
M o n t h ly R e v ie w
o f
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 ta
f o r
N o v e m
b e r
1 9 4 7
DISTRIBUTION OF TOTAL DOLLAR VOLUME OF FARM PRODUCTION LOANS
OUTSTANDING IN M ID -1947 BY SELECTED CHARACTERISTICS
Type of Farm
Purpose of Loan
Tenure Status of Borrower
Security for Loan
133
134
M o n t h ly R e v ie w
o f
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
f o r
N o v e m
b e r
1 9 4 7
INTEREST CHARGED O N FARM PRODUCTION LOANS
0i m m
Size
UNOCft
or $290
Production credit was obtained on relatively favorable terms by
borrowers with large financial resources.
AMenMCmtmsr hate
mm
1904«e
900eet
1,0001.499
i&a
1,900
2.499
2,000
4,ttt
9,000
9,99*
<
0,000
mmom
Farmers witli large financial resources borrowed relatively large
sums. Interest rates wero relatively low.
AVERA0E INTEREST RATE
9
9
8
8
7
7
6
6
5
5
4
4
.
I
I
I
3
2
I
0
TY
P
E
O
FM
FA
R
O'
COTTON
TOBACCO
GENERAL 9UQARCANE TRUCK
QMRV
OTHER LIVESTOCK
Farmers who obtained most of their income from enterprises re
quiring large financial resources paid relatively low interest rates.
size
OF
UNDER
10 ACRES
1029
70199
140299
290499
9 0 0 AND
OVER
Large financial resources and low interest rates were associated
with large farms.
M o n t h ly R e v ie w
o f
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 ta
thirds of the loans to cotton farmers were for less than $250,
less than a third of the loans to livestock farmers were that
small. In fact the average loan to livestock farmers amount
ing to almost $1,000 was about three times as large as the
average loan to cotton farmers. Loans of less than $250 made
up about slightly more than a sixth of the total amount
of loans outstanding. Loans of more than $2,500, on the
other hand, accounted for about a third. Of the total dollar
volume of loans to livestock farmers, more than half was
in loans that exceeded $2,500 in size. Such large loans, how
ever, comprised only about a fifth of the total dollar volume
of loans made to cotton farmers.
Bank credit used to finance District farm operations was
used mainly to pay production and living costs and to buy
machinery and livestock. Three fourths of the total number
of loans were made for the purpose of paying production
and living costs, and about two thirds of these were in
amounts of less than $250. Less than a seventh of all farmproduction loans were for the purchase of machinery or live
stock. These loans were considerably larger than the loans
made in order to meet costs of production and of living.
Two fifths of the machinery and livestock loans were in
amounts larger than $500, as compared to one fifth of the
production-cost and living-cost loans.
For the nation almost a third of all farm-production loans,
comprising half the total amount of loans outstanding, were
used for buying livestock and machinery. It would appear
that, for the attainment of efficient farming systems, the need
for this type of capital is greater in the District than it is in
the nation as a whole. Despite the rapid strides that District
farmers have made toward diversification and mechanization,
the purposes for which they used bank credit indicate their
heavy reliance on cash crops and hand labor.
Loans used to buy and improve land and buildings and
to repay debts accounted for only 4 percent of production
loans. Those in the former classification, of course, were for
larger amounts than any other type of loan was.
Most of the farm-production loans held by District banks
were for short terms. Loans with original maturities of six
to nine months were the most common, comprising about 35
percent of all loans. Fewer than 2 percent of all loans were
written for maturities of longer than a year.
Since an investment in livestock and machinery requires
a relatively long period before it can be repaid out of cur
rent earnings, loans for this purpose would be expected to
have long maturities. It is an interesting fact, however, that
more than half these loans had maturities of less than six
months. Although there appears to be little relationship be
tween the purposes of loans and their original maturities,
such a relationship may exist. In actual practice loans for
durable capital, such as machinery and livestock, may be
made with the understanding that they can be renewed if
necessary.
Maturities on loans to pay production and living expenses
are longer for District farm-production loans than they are
for loans of this type for the entire nation. About 42 per
cent of the loans obtained by District farmers to pay produc
tion and living costs were written to mature in six or nine
months. For the nation’s farmers only about 16 percent of
such loans were for a six-month or a nine-month period.
Apparently maturities for loans of this type are roughly ad
justed to the time required for the production of the crops
most commonly grown.
f o r
N o v e m
b e r
135
1 9 4 7
About nine tenths of the farm-production loans held at
District banks were secured by specific assets or by endorse
ment. About half the loans and half the total amount of
loans outstanding were secured by a combination of crops,
livestock, and machinery. Livestock alone, which accounts
for about 15 percent of the loans and approximately 11 per
cent of the amount of outstanding loans, is the second most
important type of security. Only about 4 per cent of all loans
were secured by machinery alone, and growing crops held
an even less important place.
The security for production loans varied significantly ac
cording to the tenure status of the farm operator. A fifth
of the owners with no mortgages on their farms obtained
their production credit without endorsement and without
pledging any assets. Only 7 percent of the tenants or crop
pers obtained their production credit in that way. Endorse
ment alone was more common on loans made to tenants and
croppers than it was on those made to other tenure groups.
Landlords often endorse notes for their tenants or croppers
to enable them to obtain the credit they need for producing
a cotton crop.
District farmers obtain less of their production credit in
the form of unsecured loans and loans secured by livestock
than do farmers nationally. For the nation as a whole about
30 percent of the amount of production credit was unsecured,
against 12 percent in the District. Livestock was the only
security for about a quarter of the production credit used by
the nation’s farmers, whereas in the District it was the only
security for no more than about 11 percent of the total
amount of the production loans outstanding.
The average interest rate on loans made to finance District
farming operations was 6.9 percent. Two fifths of the loans
carried interest rates ranging from 8 to 8.9 percent. Since
the larger loans are usually obtained at lower interest rates,
only 28 percent of the total dollar volume carried interest
rates ranging from 8 to 8.9 percent. The pattern of interest
rates appeared to be related more closely to the net worth
of borrowers than to other characteristics. For the borrowers
with a net worth of less than $2,000 more than a fourth of
the loans carried interest rates of 9 percent and more. They
obtained only about a fourth of their loans at rates lower
than 7 percent. Borrowers with a net worth of $10,000
to $25,000, on the other hand, obtained 65 percent of their
loans and 78 percent of the total dollar amount of their
loans at rates below 7 percent.
Interest rates on farm-production loans are closely related
also: to the size of the loan and to the type of farming in
which the borrower is engaged. Both, of course, bear close
relationships to the net worth of the borrower. On loans of
less than $250 the farmers paid an average rate of 8.5 per
cent. As the size of loan increased the rate of interest de
creased. On loans of $2,500 and more the average rate was
only 5.6 percent.
Cotton farmers paid an average interest charge of 7.6 per
cent, and livestock farmers an average charge of 5.9 percent.
On loans of equal size, however, cotton farmers typically pay
higher rates of interest than do livestock farmers.
Average interest rates on bank loans for farm production
have, according to the survey, declined markedly since 1930.
District farmers still pay slightly higher average interest
rates—6.9 percent—than the nation’s farmers who pay, on
the average, only 6.2 percent.
B rown R. R awlings
M o n t h ly R e v ie w
136
o f 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
f o r
N
o v e m
b e r
1 9 4 7
District Business Conditions
Trade
y th e end of October Sixth District department stores
had sold goods only a little greater in dollar value than
those they sold during the corresponding 10 months of 1946.
Sales made in the first two weeks of November exceeded those
of the corresponding weeks last year 11 percent. But, only
if consumers do almost the same record spending for the re
mainder of the Christmas buying season that they did last
year at this time will the record of year-to-year increases since
1938 be continued.
Although total sales this year have so far been at about
the 1946 rate, the retailers’ needs for working capital are
higher than they have been for several years. Combined ac
counts receivable and inventories at credit-granting depart
ment stores reporting to this bank were 8 percent greater
at the end of October than they were at the end of the cor
responding month last year, and 69 percent greater than they
were at the end of October 1945. Although inventories were
larger than they were at that time last year, almost 85 per
cent of the combined increase was accounted for by greater
accounts receivable.
Department stores normally expand their stocks during
this time of the year because their heaviest selling months
are usually September through December. In addition, a
large proportion of this selling is made up of credit sales,
with no corresponding increase in immediate cash receipts.
Unless they have ample cash reserves, the stores may require
short-term bank loans to finance the high inventories and
accounts receivable until their goods are sold and their col
lections made.
In addition to periods of normal seasonal increase in in
ventories and accounts receivable, there may be periods, like
one in 1946, during which merchants expand their inven
tories at rates greater than the seasonal influences justify
and, like the present period, during which they make an
increasing proportion of their sales on credit. Because of
the wartime accumulation of liquid assets while inventories
were low in relation to total sales and the proportion of cash
sales was high, most of the stores were able to end the year
1946 without resorting to bank borrowing. During 1947, how
ever, the stores’ cash assets have probably been reduced by
increased operation costs and by expenditures for the wardelayed construction of store additions and remodeling.
Moreover, because sales during the first 10 months remained
at approximately the 1946 level, the amount of cash receipts
could not increase in accordance with the rise in accounts
receivable. During the third quarter cash receipts were 5 per
cent less than they were during that period of 1946. At the
same time inventories, although they have not accumulated as
rapidly as they did in 1946, have not declined to the low
ratio to sales that was characteristic of them in the war
period. During the first three quarters of the year stocks
on an average were 2.5 times the average monthly sales,
whereas they were only twice the average value of sales
in the corresponding period of 1946. Accounts receivable
were 1.2 times, against nine tenths in 1946, the average
monthly sales.
This combination of circumstances may partly account
for the recent expansion in bank lending to businesses. With
B
minor variations, the pattern is characteristic of the other
reporting retailers also. The furniture stores’ October sales
were 7 percent greater than they were in 1946, though their
accounts receivable were up 33 percent. The jewelry stores*
sales were up 3 percent, and their accounts receivable 42
percent. The household-appliance dealers had a 24 percent
rise in sales and a 65 percent increase in their accounts re
ceivable.
If the present high value of sales is maintained, inven
tories are sold, and collections are made on the accounts,
retailers will pay off the loans they have made with the
banks and, thus, their total loans will probably show the
normal seasonal decline after the first of the year. On the
other hand, if a great expansion of credit sales is induced by
easier credit terms and a lengthening of the period over
which the accounts are paid, bank loans to retailers may re
main relatively high.
c. T. T.
Employment and Industry
Manufacturing employment in Sixth District states continued
to rise in September for the second consecutive month. Al
though the number of workers employed by manufacturing
industries in September was only slightly greater than the
number employed in August, it was well above the figure
for September 1946. Each of the states participated in the
increase.
Unemployment decreased considerably during the same
period. Approximately 184,500 persons were unemployed
under the state insured-unetnployment plans and the veterans’
unemployment program in the last week of August This total
is a considerable decline from the figure for the last week
in July but is not as low as the figure for the last reporting
week of either May or June. Each of the Six States partici
pated in the August decrease, with differences of course.
Tennessee and Louisiana, for example, each reported a new
postwar low for itself. In Mississippi the unemployment ratio
dropped a full percentage point; Five of the Six States re
ported^ fewer continued claims in the last week of Septem
ber than they had reported in the corresponding week of
1946. Florida, however, reported 7,000 continued claims
more than the 9,000 it reported last year. Reports from state
employment offices in key District cities indicate that in
September the trend for all claims was still downward, and
predictions from all state offices were that it would continue
so through the end of the year.
The value of construction contracts awarded in the Sixth
District states for the third quarter of 1947 was somewhat
greater than that for the second quarter and considerably
higher than the figure for the first quarter of the year. At
$269,613,000, the value set by the F. W. Dodge Corporation,
it was, however, almost 20 million dollars below the figure
for the third quarter of 1946. Residential construction con
tinued at a high level in the District during that quarter,
comprising about 45 percent of total construction.
The outstanding record for construction among the Six
States was made in Florida, where the estimated value of
contracts awarded during the third quarter came to $106,380,000. This consisted of $63,830,000 for residential con
struction and $38,449,000 for other construction. The high
residential figure represents 53.4 percent of this type of con
M o n t h ly R e v ie w
o f
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 ta
struction in the Six States. It is explained by a program
of increased home construction in Florida. In the Miami area
alone 11,060 dwelling units were started in the first eight
months of the year. Permits were issued for 2,020 dwelling
units in August and for 1,838 in September. The total number
of new dwelling units, according to estimates of the Bureau
of Labor Statistics’ Southeastern Regional Office, will exceed
16,000 this year in that area.
The population growth in Florida accounts, in part, for this
increased construction activity. This growth is almost phe
nomenal compared with the national growth of 8.9 percent. A
gain in population of 26.2 percent occurred between April
1940 and July 1947. Even for the year July 1946—July
1947, when many states had population losses, the gain was
3.6 percent. Florida has increased in popularity as a place
for retirement, and the advancing age of the nation’s popula
tion has in recent years accentuated this trend. Also, many
veterans who were stationed there at the numerous military
bases during the war decided to make the state their home.
These factors combined with the need for increased facilities
at the resorts of the state, which have always made it a mecca
for tourists, have contributed to the great rise in real-estate
values and made plausible the prediction that construction
activity in the state for the year 1947 will surpass that of
the boom year of 1925.
The construction cost of the average one-family house
started in the Miami area in September is set at $10,343 by
the Bureau of Labor Statistics’ Southeastern Regional Office.
The figure, which is based on contractors’ estimates, repre
sents the cost of labor and materials and all subcontracted
work but excludes the cost of land and development. Present
real-estate prices in Florida are very high, a condition that
would further tend to inflate the actual selling price. This
figure is considerably higher than the average cost, $5,008,
of the one-family houses started in September in Memphis
and the comparable figure, $6,233, in Atlanta, but in Miami
a much greater proportion of the total was for higher-cost
housing.
L . c.
Finance
Private-credit expansion, which is evident in the recent
growth of member-bank loans, continued during October and
November to increase inflationary pressures. By the end of
October all Sixth District member-bank loans had mounted to
1,378 million dollars. This record-breaking total is 153 mil
lion dollars greater than the amount at the end of June, when
the present expansion began. The gain was more than twice
the amount of the reduction, 70 million dollars, in the banks’
holdings of Government securities during the period.
According to the experience of the weekly reporting banks,
about four-fifths of the total expansion is in business loans.
A growth of consumer loans and real-estate loans has con
tributed further to the increase.
Total loans for the Sixth District banks were about 23
percent greater at the end of September than they were a
year earlier, and the rate of increase for the entire United
States was) 22 percent. Since June the District’s loans have
increased 5.9 percent, approximately the rate for all member
banks in the United States.
Industrial production, on the other hand, was 2 percent
lower at the end of the first nine months than it was at the
beginning of the year. That this decrease in production was
accompanied by an unprecedented rise in loans and by ad
vances in wholesale prices, 13 percent, and consumer prices,
7 percent,
has made the price structure particularly sensitive
f o r
N o v e m
b e r
137
1 9 4 7
S ix t h D is t r ic t S t a t is t ic s
INSTALMENT CASH LOANS
V olum e
O u tsta n d in g s
N o. of
P e rc e n t C h an g e
P e rc e n t C h an g e
L e n d e rs
R eport N ovem ber 1947 Iron; N ov. 1947 from
in g
N ov.
O c to b er
O c to b er
N ov.
1946
1947. .
1946
1947
Lender
F e d e r a l c r e d it u n io n s ,.............
S ta te c r e d i t u n i o n s .................. .
I n d u s tr ia l b a n k i n g
c o m p a n ie s ...............................................
I n d u s tr ia l l o a n c o m p a n i e s . .
S m a ll lo a n c o m p a n ie s .............
C o m m e rc ia l b a n k s ..................
43
25
+ 17
— 3
+ 58
+ ' 63
+
—
2
2
+ 52
+; 5 4
ai
,19
5*3
34
+
9
+ 5
+i 30
+
2
— 5
— 4
+! 2 3
+': S3
+
+
+
3
0
2
8
+ 20
+ /16
+ 15
+ 75
RETAIL FURNITURE STORE OPERATIONS
P e rc e n t C h a n g e
Nov. 1947 from
N u m b er
of
S to res
R ep o rtin g
Item
93
<85
85
92
92
66
C a s h s a l e s ........................................................
In s ta lm e n t a n d o th e r c r e d it s a l e s . .
A c c o u n ts r e c e iv a b l e , e n d of m o n th
C o lle c tio n s d u r in g m o n t h .................. ..
I n v e n to r ie s , e n d o f j o o n t h ....................
N ov. 1946
O ct. 1947
+
+
+
+
—
+
5
6
5
4
+
7
— 26
+ 15
+ 33
+
9
— 0
0
9
WHOLESALE SALES AND INVENTORIES*
SALES
INVENTORIES
P e rc e n t C h a n g e
No. of
No. of P e rc e n t C h a n g e
Firm s O c to b er 1947 from Firm s O ct. 31, 1947, from
R
eport S e p t. 30 O ct. 31
R eport
O ct.
S e p t.
in g
in g
1947
1946
1947
1946
Ite m s
A u to m o tiv e s u p p l i e s .
S h o e s ...................................
D ru g s a n d s u n d r ie s ..
D ry g o o d s ..........................
E le c tric w ir in g s u p . . .
E le c tric a l a p p l i a n c e s .
F a r m s u p p l i e s ...............
C o n f e c tio n e r y ...............
G r o c e r i e s ..........................
F u ll l i n e s ..................
S p e c ia lty l i n e s ..........
B e e r ......................................
G e n e ra l h a r d w a r e .. .
I n d u s tr ia l h a r d w a r e . .
J e w e lr y .................................
L u m b e r a n d b u il d in g
m a t e r i a l s .......................
T obacco p r o d u c ts .. . .
M is c e l la n e o u s ...............
8
8
3
7
7
4
4
4
+ 10
+
+
+
+
+
+
+,
+
7
23
3
o
24
22
15
14
—
+
+
+
—
+
+,
+
+
16
16
43
4
22
53
34
27
12
30
5
3
5
4
5
+ 13
+
6
+ 11
+ 26
+
1
+ 16
1
0
—• 3 6
+ 16
+ 19
— 16
3
11
18
122
+ 9
+ 15
— 0
+ 10
+ ' 13
+ 1
+ 42
+ 10
3
4
3
— i6
— 5
+
0
— *i
+ 50
+ 160
IS
—
2
+ 30
*5
+
2
— 20
‘3
25
59
—
—
+
2
+ 27
+ 37
+ 30
—
4
3
* B a s e d o n U . S. D e p a r tm e n t o f C o m m e r c e f ig u r e s
DEPARTMENT STORE SALES AND STOCKS
P la c e
ALABAM A
B ir m in g h a m ..................
M o n tg o m e r y ...............
FLO R ID A
J a c k s o n v ille ..................
M ia m i...............................
O r l a n d o . .......................
G E O R G IA
A u g u s t a .........................
C o lu m b u s ....................
LO U ISIA N A
B a to n R o u g e ...............
N e w O r l e a n s .............
M IS S IS S IP P I
J a c k s o n ............................
TENN ESSEE
C h a t ta n o o g a ...............
K n o x v ille .......................
N a s h v ill e ..................
O TH ER C IT IE S*
D IST R IC T
SA L ES
INVENTORIES
No. of P e rc e n t C h a n g e
No. of P e rc e n t C h an g e
S to res O c to b er 1 9 4 7 from S tores O ct. 3 1 , 1 9 4 7 , from
R ep o rt
S e p t.
O ct. R eport S ept. 3 0
O ct. 31
in g
in g
1947
1946
1947
1946
5
5
3
+
4
+i 9
+ 10
+
+
+
2
9
1
4
4
3
5
+
+
+
+'
18
25
43
13
+
+
+
+
0
3
17
2
6
4
3
4
+
+
+
—
4
5
6
1
+
+
1
5
3
7
4
+
4
5
— 3
+ 10
—
+
6
2
4
4
+ 17
— 0
+ 11
— 4
3
4
4
+
8
—
— 1
+
6
+' 9
+
9
+ 17
+
9
— , 10
— 7
3
— 3
— 3
+ 0
3
3
+
+
6
5
+ 14
+ 39
5
22
73
+
+
+
8
7
8
+
+
+
4
3
4
4
6
18
94
+
4
+
4
+
2
3
+
is
—
3
3
3
+ 11
+ 21
3
+
5
3
+' 9
+ 22
7
io
— 12
+
1
+ 23
—
+
6
1
+
2
1
*9
2
1
* W h e n fe w e r th a n th r e e s t o r e s r e p o r t in a g iv e n c ity , t h e s a le s o r s to c k s
a r e g r o u p e d t o g e th e r u n d e r " o t h e r c i t i e s ."
138
M o n t h ly R e v ie w
o f
t h e
to any further increases in purchasing power that are not
accompanied by production increases. Thus, the attitude pri
vate lenders take toward restricting their loans or expanding
them helps to determine the direction that inflationary de
velopments take.
The Board of Governors, in its statement issued in con
nection with the ending of consumer-credit control on No
vember 1, emphasized that the responsibility for avoiding
excessive consumer-credit expansion now rests primarily
upon the banks, the finance companies, and the instalment
sellers. Under present conditions of capacity production, the
Board pointed out, expansion in purchasing power through
increased lending and easier credit terms could only heighten
demand and accentuate* the upward pressure on prices.
The 11.2-billion-dollar total of consumer credit outstand
ing in the United States at the end of September exceeded the
prewar peak, at the end of 1941, by 1.5 billion dollars and
more than doubled the amount outstanding at the end of
December 1943. Between the end of 1946 and September 30,
total consumer credit expanded 1.3 billion dollars. By making
instalment loans directly to consumers and by purchasing
instalment paper, commercial banks have contributed more
than half the total expansion in consumer credit since the
first of the/ year. An increase in their single-payment loans
to consumers has made an additional contribution to the
total.
Commercial banks in the Sixth District had consumer in
stalment loans outstanding at the end of October that were
estimated to be in the amount of 142.8 million dollars. The
total of these loans increased each month after February
1944, when it was only 27.8 million dollars. For the first 10
months of this year the growth amounted to 46.5 million.
Great as the growth in consumer instalment loans out
standing at the Sixth District commercial banks was between
September 1946 and September 1947, its rate of 72 percent
has been exceeded in six of the 11 other Federal Reserve
districts. In fact, the average for all the commercial banks
in the United States was 75 percent.
Of the total consumer instalment loans outstanding at
Sixth District commercial banks, about 39 percent were
made for the purchase of automobiles and about 17 percent
for the purchase of other goods* Repair and modernization
loans amounted to 15 percent of the total, and personal in
stalment cash loans 29 percent. So far, the credit expansion
has depended in large measure upon the increase in the
supply of consumer durable goods. Future expansion will
depend also on how greatly credit terms are relaxed.
C. T . T .
Agriculture
Sixth District farmers will find that their plans for next
year’s operations are going to be influenced by the shortage
of commercial fertilizer. Normally they use 30 percent of
the quantity produced in this country, since high yields of
their principal cash crops require heavy applications. Nitro
gen is the scarcest of all the fertilizer ingredients.
The shortage is relative rather than absolute, however,
for current production rates are higher than they have ever
been. In 1944, the last year for which complete figures are
available, District farmers used 3,820,371 tons of commercial
fertilizer, 65 percent more than their 1935-39 average.
Farmers in other sections of the United States increased their
use 81 percent. Thus the national output is now about 75 per
cent higher than the average for 1935-39.
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 ta
f o r
N o v e m
b e r
1 9 4 7
S ix t h D is t r ic t I n d e x e s
DEPARTMENT STOBE SALES*
A djusted**
P la c e
DISTRICT...............
A tla n ta ...........
B aton R o u g e ...
B irm in g h a m .. . .
C h a tta n o o g a ...
J a c k s o n v ille ....
K nox v ille...........
M i a m i .. ............
M o n tg o m e ry ...
N a sh v ille ...........
N ew O r le a n s ...
U n a d ju ste d
O ct.
1947
S e p t.
1947
O ct.
348
408
356
333
343
011
431
297
309
891
333
407
299
492
361
422
394
063
351
025
4301
S ll
346
380
852
418
306
1484
1946
O ct.
1947
S e p t.
1947
O ct.
1946
348
401
379
021
369
325
431
307
334
379
028
420
290
483
372
432
085
363,
360
358
46(2
321
334
344
380
432
332
483
368
448
372
429
409
350
387
073
461
331
360
334
374
445
322
473
m
378
365
374
422
318
363
1296
8713
426
327
460
DEPARTMENT STORE STOCKS
A djusted**
U n a d ju ste d
Place
O ct.
1947
S e p t.
1947
O ct.
1946
O ct.
1947
S e p t.
1947
O ct.
1946
DISTRICT...............
800
887
238
313
453
238
282
392
m
All
035
454
268
355
520
269
31,1
418
257
308
483
£ 69
333'
482
263
365
477
^ 0
B irm in g h a m .. . .
M o n tg o m e ry ...
N ash v ille...........
N ew O rle a n s.
m
234
322
416
248
276
446
256
GASOLINE TAX COLLECTIONS***
A d ju sted * •
P lace
SIX STATES . . . .
A la b am a .............
G e o rg ia .............
L o u isia n a ...........
M ississip p i........
T e n n e s s e e ........
Sep t.
1947
O ct.
1946
m
171
179
159
.184
155
1181
194
1 60
165
1147
140
149
153
206
>191
167
171
162
•165
■182
COTTON CONSUiMPTION*
T O T A L ...............
A l a b a m a ....
G e o r g ia .. .
M is s is s ip p i.
T en n essee.
U n a d ju ste d
O ct.
1947
O ct.
1947
S ep t.
1547
O ct.
1946
148
156
147
1108
137
136
/144
134
91
/126
172
183
171
132
141
170
as9
m
170
J66
168
182
S e p t.
1947
Oct.
1946
175
188
156
*7il
157
163
133
147
•144
.156
205
m
187
,198
ELECTRIC POW ER PRODUCTION*
S e p t.
A ug.
S e p t.
1946
1947
1947
S IX S T A T E S ........
H y d ro g e n e ra te d . .
Fuel-*
g e n e r a te d ..
296
285
269
195
193
261
m
406
279
CONSTRUCTION CONTRACTS
MANUFACTURING
EMPLOYMENT***
P la c e
P la c e
S e p t.
1947
A ug.
1947
S e p t.
1946
SDC ST A T E S.
A l a 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.
<144
155
1,14
11131
1144*
165
156
143
,152
112r
1 3 0r
1144
162r
)15'5
*40
/146
'113
1139
180
148
150
D IS T R IC T .. . .
R e s id e n tia l.
O t h e r .............
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 is s ip p i.
T e n n essee.
S e p t.
1946
Item
S e p t.
1947
A ug.
ALL I T E M S ..
F o o d .............
C lo th in g ...
R e n t...............
F u e l, e l e c .,
a n d i c e ........
H o m e fu r
n is h in g s . . .
M is c ............... .
P u r c h a s in g
p ow er of
d o l l a r _____
168
212
185
n .a .
166
205
185
n .a .
im
12 8
*129
<114
181
>144
179'
143
,158
132
.6 0
.6 0
.6 7
180
1162
lil5 |
* D aily 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
* * * 1 9 3 9 m o n th ly a v e r a g e = 1 0 0 ;
o t h e r in d e x e s , 1 9 3 5 - 3 9 = 1 0 0
S e p t.
1947
A ug.
1947
S e p t.
1946
312
459
240
317
442
326
1126
385
000
475r
714r
360
585
685
476
241
317
317
431
666
017
639
414
474
.1711
89
'541
ANNUAL RATE O F TURNOVER O F
DEMAND DEPOSITS
CONSUMERS' PRICE INDEX
1 9 47
T947
U n a d j u s t e d ...
A d j u s t e d * * .. .
I n d e x * * .............
O ct.
1947
S e p t.
1947
Oct.
1946
1 9 .0
.18.8
7 6 .2 ,
'1 7 .5
1 8 .0
7 3 .0
(18.9
<18.7
7 2 .4
CRUDE PETROLEUM PRODUCTION
IN COASTAL LOUISIANA
AND MISSISSIPPI*
O ct.
S e p t.
O ct.
1946
1947
1947
U n a d j u s t e d .. .
A d ju s te d * * . . .
26©
26©
r R e v is e d
n .a .N o t a v a ila b le
259
262
236
236-
M o n t h ly R e v ie w
o f
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 ta
In the Southeast, as in other sections, high prices for the
principal cash crops have resulted in farmers applying, or
at least wanting to apply, heavier amounts of fertilizer ma
terials. In the Midwest farmers used little commercial fer
tilizer before the war because of their area’s natural fertility.
With the rapid spread of high-yielding hybrid corn, however,
a heavy drain was placed on the soils of the Midwest, and
the farmers began to find its use very profitable. The 193539 average annual rate of use in Illinois was 44,000 tons;
the 1944 figure was 411,000. In Iowa the 1935-39 rate was
9,000 tons and the 1944 amount 99,000. Though the prices
have risen, they have not kept pace with farm-product prices.
Thus the net gains from the use of commercial fertilizer
have encouraged heavier applications throughout the country.
Foreign demand for fertilizers has also increased. Since
the rebuilding of European agriculture depends to a large
extent on an extensive use of nitrogen, each of the European
countries requesting aid under the Marshall Plan has placed
nitrogen high on its list; of priorities. The Government has
committed itself to making nitrogenous materials available
to them and has requested that a certain percentage of each
month’s production be reserved for export. Present plans call
for shipping about the amount of nitrogen that was exported
last year, though the actual quantity will depend on the
amount of aid granted under the Marshall Plan. Phosphate
and potash, on the other hand, are not being requisitioned
for foreign shipment.
Doubtless, at the time of planting, many farmers will apply
materials low in nitrogen content with the hope of sidedressing or top-dressing during the growing season with
nitrates, the scarcest of all the materials. Small-grain pro
ducers have been the growers hardest hit by the shortage of
nitrates.
Although the price of commercial fertilizer has risen 10
to 12 percent in the past year, heavy use is still profitable.
The consensus at the meetings of the National Fertilizer Asso
ciation in Atlanta and the National Agricultural Outlook in
Washington in November was that supplies of all fertilizers,
with possibly one exception, will be about what they were
last year. Supplies of super-phosphate will probably increase
as additional plants are completed.
Farmers in the South are more fortunate than those in the
Midwest, for they can produce much of their nitrogen by
growing legumes in winter. Supplies of lime and phosphate
for use under legumes are not scarce. Since there is little
prospect that the nitrogen scarcity will be over in another
year, Southern farmers should plan now to increase their
acreage of winter legumes next year.
In the past a lack of farm power has, in many instances,
limited the acreage of winter legumes which farmers could
handle. Between 1940 and 1945, however, the number of farm
tractors in the Six States increased from 56,538 to 117,279
and the number of farms with tractors from 47,214 to 92,683.
The increased farm power together with the availability of
minerals and legume seeds should enable many farmers to
grow a sizable portion of their nitrogen requirements. More
over, farmersi will be reimbursed for a part of the cost by
the Production and Marketing Administration.
November and December are the months of the heaviest
fertilizer sales. The analysis and amount of fertilizer farmers
can buy will influence next year’s production.
J. L. L.
f o r
N o v e m
b e r
139
1 9 4 7
S ix th D is t r ic t S t a t is t ic s
C O N D IT IO N O F 2 8 M EM BER BANKS IN SELE C TED C IT IE S
(I n T h o u s a n d s o i D o lla r s )
P ercen t C h an g e
N o v e m b e r 1 9 , 1 9 47
N
o
v
.
2
0
O
c
t.
2
2
N
o
v
.
19
I te m
1946
1947
,1947
N ov. 20
O c t. 2 2
>1946
1947
L o a n s a n d in v e s tm e n ts —
T o ta l. .............................................. 2 ,3 8 3 ,3 3 3 2 ,3 7 1 ,9 7 3
8 0 0 ,4 3 4
L o a n s— t o t a l .................. ,..............
8 1 5 ,3 0 8
C o m m e rc ia l, in d u s tr i a l,
4 7 2 ,4 2 6
a n d a g r i c u lt u r a l l o a n s . 4 9 4 ,5 4 4
L o a n s to b r o k e r s a n d
7 ,2 6 0
6 ,6 5 5
d e a le 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 a n d c a rr y in g
s e c u r i t i e s ...............................
7 4 ,4 2 5
8 5 ,3 4 8
R e a l e s ta te l o a n s .............
6 4 ,7 8 4
6 1 ,4 6 2
L o a n s to b a n k s .......................
5 ,0 1 6
5 ,6 3 6
1 6 9 ,8 8 4
O th e r l o a n s ...............................
1 6 8 ,3 0 2
I n v e s tm e n ts — t o t a l .................. 1 ,5 6 8 ,0 2 5 1 ,5 7 1 ,5 3 9
U . S . d ir e c t o b l i g a t i o n s . .
3 3 7 ,,1 4 5
3 5 1 ,8 2 2
O b lig a tio n s g u a r a n t e e d
b y U . S ................................... 1 ,0 3 8 ,0 7 0 1 ,0 2 4 ,9 4 3
O th e r s e c u r i t i e s .....................
1 9 2 ,8 1 0
1 9 4 ,7 7 4
R e s e r v e w ith F . R . B a n k . . .
4 6 4 ,9 4 8
4 6 9 ,1 0 1
C a s h in v a u l t ............................ .
4 3 ,0 2 2
4 3 ,6 2 1
B a la n c e s w ith d o m e s tic
1 8 2 ,4 0 2
<196,399
D e m a n d d e p o s it s a d j u s t e d . 1 ,7 9 4 ,0 3 9 1 ,7 7 9 ,0 1 6
5 4 9 ,,458
T im e d e p o s i t s . ............................
5 4 8 ,5 5 2
U . S . G o v 't d e p o s its ,----3 4 ,5 0 9
4 2 ,4 1 2
5 1 8 ,3 7 3
5 3 7 ,2 9 9
D e p o s its of d o m e s tic b a n k s
5 ,0 0 0
8 ,0 0 0
B o r r o w in g s ............................
2 ,4 5 2 ,9 5 3
7 0 3 ,6 3 5
— 3
+ s 16
+
+
P
2
4 0 4 ,4 5 0
+
5
-f 212
8 ,2 4 7
—
8
— 19
9 9 ,7 8 4
4 9 ,5 4 0
4 ,1 1 7
1 3 7 ,4 9 7
1 ,7 4 9 ,3 1 8
5 2 3 ,3 0 0
— 13
+
5
— 11
+
1
— 0
_
4
—* 2 5
+ 31
+; 2 2
+ 24
— 10
— 36
1 ,0 3 0 ,6 6 9
195,3149
4 4 6 ,6 8 4
4 0 ,3 4 2
+
—
+
+
4—
-f
+
1 8 5 ,6 2 0
1 ,7 1 6 ,8 6 4
5 3 8 ,2 8 7
1 2 6 ,4 9 5
5 5 8 ,8 4 3
2 1 ,0 0 0
+ 18
4- 1
— 0
— 19
-j- 4
+ 60
,1
1
1
1
1
1
5
8
4- 6
4- 4
+ 12
— 73
_
4
— 62
D EB ITS T O IN D IV ID U A L BANK A C C O U N T S
__________ (I n T h o u s a n d s of D o lla r s )___________
P la c e
ALABAMA
A n n is to n .............
B ir m in g h a m .. .
D o th a n ..................
G adsden. . . . . .
M o b ile ..................
M o n tg o m e r y ..
F L O R ID A
J a c k s o n v i l l e .. .
M ia m i.....................
G re a te rM ia m i*
O r l a n d o ...............
P e n s a c o l a ..........
St., P e t e r s b u r g .
T a m p a ..................
N o . of
B anks
R e p o rtin g
P e rc e n t C h an g e
O c t. 1 9 4 7 fro m
S e p t.
O c t.
1947
1 9 46
O c t.
1947
S e p t.
1 9 47
O c t.
1 9 46
3
6
2
3
4
3
2 1 .2 4 4
3 2 5 ,7 3 4
1 4 ,1 1 5
20,25.1
1 2 9 ,9 3 5
8 6 ,4 5 4
1 8 ,5 5 5
2 8 9 ,3 0 3
1 1 ,9 4 3
1 6 ,0 4 1
1 1 4 ,2 7 0
7 0 ,2 6 5
2 3 ,2 0 6
2 8 7 ,0 1 3
1 3 ,4 3 3
1 7 ,2 3 5
1 0 5 ,8 7 7
7 0 ,1 2 6
44+
+
+'
+!
14
13
18
26
14
23
—
+.
4*
+
.+
+i
8
13
5
17
23
23
3
7
12
S3
2 5 1 ,4 5 2
2 2 1 ,6 0 9
3 0 5 ,0 7 7
4 3 ,6 6 0
3 3 ,1 9 7
4 7 ,7 5 0
1 0 3 ,2 7 4
2 2 6 ,3 3 4
1 9 3 ,6 3 8
2 5 8 ,0 4 3
3 9 ,0 0 7
3 0 ,9 9 2
4 1 ,3 6 7
9 1 ,2 3 3
2 2 3 ,9 5 3
1 9 1 ,8 0 8
2 6 9 ,6 0 3
4 3 ,7 9 3
2 9 ,8 8 6
4 4 ,8 7 5
9 7 ,2 6 9
+■
4+
+
444-
11
14
18
12
7
15
13
44+;
—
4*
v44-
12
16
13
0
11
6
6
4
2
1 8 ,1 8 1
8 1 4 ,3 9 8
5 9 ,9 1 9
9 ,0 3 4
5 8 ,3 1 7
4 ,6 4 3
1 5 ,8 4 8
1 1 ,7 8 7
6 0 ,0 4 0
9 ,6 0 4
2 9 ,3 6 0
8 7 ,8 1 5
1 0 ,9 3 8
1 5 ,3 2 8
7 2 2 ,3 2 7
5 0 ,6 6 7
8 ,9 8 6
5 3 ,5 7 7
4 ,0 7 6
1 2 ,6 7 2
1 0 ,3 2 6
6 0 ,4 2 7
8 ,0 7 5
2 0 ,8 4 0
8 9 ,1 0 6
1 0 ,7 4 7 r
1 6 ,3 9 4
716613
5 4 ,6 1 3
8 ,6 2 3
5 6 855
4 ,5 5 4
1 3 ,6 5 4
1 0 ,9 6 1
5 8 ,0 2 7
9 ,7 8 2
2 2 ,3 2 1
7 7 ,9 0 4
1 2 ,1 7 2
+.
+
+
44+
+,
+.
—
+
+
—
>4-
19
13
18
1
9
14
25
14
<1
19
41
1
2
,44-'
4444444—
44-i
—
11
14
10
5
3
2
16
8
3
2
32
13
10
3
3
7
8 3 ,0 3 4
3 1 ,0 7 7
6 7 9 ,4 7 6
8 1 ,4 9 0
2 7 ,5 0 4
5 9 1 ,3 7 8
8 8 ,3 7 7
2 4 ,9 7 9
6 9 6 ,7 4 9
2
+ 13
+ i 15
2
4
3
1 5 ,1 3 7
1 1 0 ,7 8 9
2 7 ,7 7 9
2 2 ,8 3 8
2 0 ,3 2 3
9 7 ,8 5 8
3 1 ,1 8 4
2 9 ,7 8 2
+. 11
4- 3 9
— 15
4- 18
— 1
4- 7
1 2 5 ,8 1 7
1 0 2 ,1 6 3
2 6 2 ,3 3 5
1 2 5 ,9 0 8
1 0 3 ,9 4 9
2 6 9 ,3 6 4
+ . 11
+
3
+ 17
4- 11
4- 2
4-r 14
3 ,6 3 2 ,4 8 4
4- 12
4-
9 1 ,3 4 0 ,0 0 0
4- 15
4- 15
Q
a
3'
G E O R G IA
2
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 .............
G a in e s v i lle * . .
N e w n a n ...............
S a v a n n a h ..........
V a ld o s ta .............
L O U ISIA N A
B a to n R o u g e . .
L a k e C h a r le s . .
N e w O r l e a n s .. .
M IS S IS S IP P I
H a ttie s b u r g ...
A
3
2
4
2
3
2
8!
2
3
M e r id i a n .............
V ic k s b u r g ..........
0
1 7 ,2 8 4
1 1 5 ,4 7 3
3 0 ,9 5 1
3 1 ,7 9 9
T E N N ESSEE
C h a t t a n o o g a ..
K n o x v ille ..........
N a s h v ill e . . . .
4
A
6
1 3 9 ,6 6 1
1 0 5 ,5 1 5
3 0 6 ,0 8 1
SIX TH D IST R IC T
3 2 C i t i e s .............
ao9
3 ,9 7 1 ,9 1 5
3 ,S 3 3 ,4 9 4 r
+ 14
4- 4
4- 21
4- 2 4
—' 2
9
U NITED STATES
1 0 5 ,3 2 0 ,0 0 0
9 1 ,8 8 9 ,0 0 0
* Not included in Sixth District total,
r Revised.
M o n t h ly R e v ie w
140
o f
t h e
F e d e r a l R e s e r v e
R a n k
o f A t l a n ta
f o r
N o v e m
b e r
1 9 4 7
National Business Summary
n d u s tria l
output increased further in October. Depart-
estimated that work was begun on 92,000 dwelling units in
sales continued in large volume in October and October, the same number as in September, and 82,000 units
Ithement-store
first half of November. The general level of wholesale were completed, as compared with 77,000 in September.
commodity prices advanced slightly further.
Industrial Production
Production of manufactures and minerals continued to rise
in October, and the Board’s seasonally adjusted index of
industrial production reached a level of 189 percent of the
1935-39 average. This was the same as the rate prevailing
during the first quarter of the year and 4 percent above the
third-quarter average.
Output of durable goods increased further in October to
about the level that prevailed in the early months of this
year, owing mainly to larger output of iron and steel. Opera
tions at steel mills were at 97.6 percent of capacity, the high
est rate since the end of the war, and this rate has been
sustained in November. Activity in most branches of the
machinery and transportation-equipment industries increased
somewhat further in October.
Production of nondurable goods showed a slight advance
in October to a level of 173 percent of the 1935-39 average,
as compared with a rate of 176 at the beginning of the year.
The rise in October reflected mainly increases in activity at
cotton mills and in the printing and publishing industry.
Cotton consumption in October was 10 percent above the re
duced rate prevailing during the third quarter but 10 percent
below the rate in October 1946. Newsprint consumption con
tinued to expand and was 16 percent larger than a year ago.
Minerals output advanced somewhat in October, owing to
further gains in fuel production and was about 5 percent
above the level at the beginning of the year. Most of the rise
this year has been due to a 10 percent increase in crudepetroleum output.
Employment
Nonagricultural employment continued to increase in Octo
ber, owing mainly to thel usual large pre-Christmas rise in
wholesale and retail trade. In manufacturing, a seasonal re
duction of nearly 150,000 workers in the canning industry
largely offset further gains in most other lines.
Construction
Value of construction-contract awards, according to the F. W.
Dodge Corporation, rose sharply in October following a de
cline in September and was only slightly below the August
peak. Awards for residential building and utility construc
tion showed the largest increase. The Department of Labor
AVERAGE INTEREST RATES ON FARM PRODUCTION LOANS O F INSURED
COMMERCIAL BANKS OUTSTANDING IN MID-1947
BY TYPE O F FARM AND SIZE O F LOAN
Size of lo a n
T ype of farm
U nder
$250
$250499
$500999
$1,000- $1,5901,499
2,499
O ver
$2,500
IAU
Sixes
A v e ra g e In te re s t R ate
G e n e r a l ...................................
C o tt o n ......................................
O th e r croiDB............. ..
l i v e s t o c k & liv e s to c k
p r o d u c t s ............................
N o t c l a s s i f ie d .......................
8 .2
8 .7
8 .8
7 .5
8 .1
7 .7
7 .2
7 .3
7 .6
6 .5
7;i
7 .3
6 .4
6 .3
7 .5
5 .5
5 .3
6.8
7 .6
6 .2
6 .8
6 .0
7 .0
6 .1
5 .8
6 .7
5 .6
6 .0
5 .5
6.0
6 .9
6 .2
ALL B O R R O W E R S ..........
8 .5
7 .8
7 .3
6 .8
6 .7
5 .6
6.9
6A
6 .6
7 .6
Distribution
Department-stores sales, according to the Board’s seasonally
adjusted index, were 278 percent of the 1935-39 average in
October as compared with 290 in September and an average
of 280 during the first three quarters of the year. In the
first half of November sales showed more than the usual
seasonal increase and were 11 percent larger than in the
corresponding period of 1946.
Commodity Prices
The general level of wholesale commodity prices increased
slightly further in October and the early part of. November,
reflecting advances in industrial commodities. Average price
levels foi' farm products and foods were unchanged, as in
creases in cotton, cereal products, and fats and oils were off
set by declines in prices of livestock products from the ad
vanced levels reached in September.
Retail prices, according to the consumers’ price index ad
vanced 2 percent in September, reflecting a rise of 4 percent
in foods, 2 percent in rents, and an average increase of one
percent in prices of other items. In October retail prices of
foods apparently declined somewhat while prices of various
other items continued to advance.
Bonk Credit
Rapid expansion in commercial and industrial loans con
tinued at banks in leading cities during October and the first
half of November. Real-estate and consumer loans also in
creased further.
Transfer of funds by the Treasury from war-loan balances
at commercial banks to Treasury accounts at reserve banks,
together with Treasury retirement for cash of Government
securities held by reserve banks, resulted in & dram on
member-bank reserves in late October and again in midNovember. Banks obtained reserves to meet this drain largely
through further gold inflows and by selling Government se
curities to the reserve banks.
Interest Rates and Bond Yields
Prices of Treasury bonds declined considerably in October
and November, following an earlier decline in corporatebond prices. The yield on the longest 2%-percent issue rose
to 2.44 percent, compared with a low point for this year of
2.28. Average rates on Treasury bills have risen gradually
since last summer to .94 percent in November. A new 13month 1%-percent Treasury note has been offered in ex
change for the 7/8-percent certificates maturing December 1.
The Board of Governors
RETAIL IEWELRY STORE OPERATIONS
N um ber
P e rc e n t C h a n g e
of
N ovem ber 1947irom
Ite m
S to res
R ep o rtin g O c to b er 1947 N ovem ber 1946
m
C r e d it s a l e s ......................... ........................ ..
A c c o u n ts r e c e iv a b l e , e n d o f m o n th
C o lle c tio n s d u r in g m o n t h . .............
40
40
140
40
+
—
6
2
+ 10
+ 5
—
a
+ 3
— 15
+ 17
-f 42
+
7
@FedFRASER