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ATLANTA, GEORGIA, NOVEMBER 30, 1955 I n J f tis Iss u e : S o u th e r n P in e In d u str y F aces C h a lle n g e B a n k in g F a c ilitie s K e e p P a c e w it h P r o s p e r o u s S o u th D is t r ic t B u s i n e s s H i g h l i g h t s S ix th D itfr id S ta tis tic s : C o n d i t i o n o f 2 7 M e m b e r B a n k s in L e a d i n g C i t i e s D e b its t o I n d iv id u a l D e m a n d D e p o s it A c c o u n ts D e p a r tm e n t S to r e S a le s a n d I n v e n to r ie s I n s ta lm e n t C a sh L o a n s R e t a i l F u r n itu r e S t o r e O p e r a t i o n s W h o le s a le S a le s a n d I n v e n to r ie s S ix t h V ffir id In d e x e s : C o n s tr u c tio n C o n tr a c ts C o t t o n C o n s u m p tio n D e p a r t m e n t S to r e S a le s a n d S to c k s E le c tr ic P o w e r P r o d u c tio n F u r n itu r e S t o r e S a l e s a n d S t o c k s M a n u fa c tu r in g E m p lo y m e n t M a n u fa c tu r in g P a y r o lls N o n fa rm E m p lo y m e n t P e tr o le u m P r o d u c tio n T u rn o ver o f D e m a n d D e p o sits D I S T R I C T B U S IN E S S H I G H L I G H T S S o m e sig n s o f fa lte rin g h a v e a p p e a re d in S ix th D is t r ic t b u s in e s s a c tiv ity a fte r a b o u t a y e a r o f c o n tin u e d a d v a n c e . S p e n d in g as m e a s u re d b y d e p a rtm e n t sto re sa les a n d b a n k d e b its tu rn e d d o w n s lig h tly fro m s u m m e r a n d e a rly fa ll le v e ls , a n d n o a d v a n c e o c c u rre d in n o n fa r m e m p lo y m e n t. C o n s tr u c tio n a w a rd s fe ll b e lo w la s t y e a r fo r th e first tim e . A g a in s t th ese a d v e rse sig n s, h o w e v e r, w e re fu rth e r g a in s in b a n k lo a n s a n d d e p o sits, a n d fa rm c a s h re ce ip ts e x c e e d e d la s t y e a r’s. Department store sales, seasonally adjusted, declined in the first three weeks of November after a sharp rise in October. Instalment buying at department and furniture stores in October was at a slower pace than in the previous month, but both charge and cash transactions recorded greater year-to-year gains. Gains in sales of nondurables at department stores equaled those of durables during October, after having lagged during most of the year. New car registrations in September and, according to preliminary reports, in October continued to show sizable gains over a year ago. Nonfarm employment, after seasonal adjustment, remained practically unchanged in September for the third consecutive month. Manufacturing payrolls, after seasonal adjustment, rose slightly in September, reflecting a longer workweek and higher hourly earnings. Residential construction awards recovered somewhat in October, but remained below a year ago. Total construction awards for the first time this year fell below previous year levels. Petroleum production, after seasonal adjustment, continued to increase in Septem ber and October. Farm cash receipts through August this year exceeded receipts for the similar 1954 period. Crop production is expected to exceed last year’s output by a wide margin; cotton, tobacco, and peanut crops are improved, but rice and sugarcane and pecan harvests will be lower. Prices of most farm products are near or below last October’s; cattle, eggs, and oranges have improved, but cotton, hogs, and corn have declined. Farm costs remained near their last fall levels; farm wage rates were higher, but some feed costs were slightly lower. Moisture shortages in most areas through mid-November materially aided har vesting operations but damaged pastures and delayed fall planting of grazing and small grain crops. Citrus harvesting began later than usual; aided by favorable weather, however, the crop is expected to exceed last year’s. Total deposits at member banks, seasonally adjusted, increased during October, reflecting gains in all types. Seasonally adjusted loans at member banks increased during October and, according to preliminary information, continued to gain during November. Spending, as measured by seasonally adjusted bank debits, decreased in October but remained well above a year ago. Business, real estate, and consumer loans continued the upward pattern of recent months and accounted for most of the gain in total loans. The Federal Reserve Bank of Atlanta raised the discount rate on loans to member banks from 214 percent to 2 Vi percent on November 18. 2 S o u th e rn P in e I n d u s tr y F aces C h a lle n g e In the Sixth Federal Reserve District, more people depend on wood products industries for their livelihood than on any other type of manufacturing. Marked differences in trends within this group of industries in the last few years, therefore, are of widespread interest. The rapid expansion in the paper industry, for example, has been noteworthy, but the contraction in lumbering, the most important of the forest product industries, has caused some concern. Be tween 1947 and 1954, employment in lumber and furniture declined 22 percent in District states; between 1947 and 1953, output of all types of lumber fell about 15 percent. Producers of Southern yellow pine, which accounts for about two-thirds of this area’s lumber output, had special cause to lament. Many mills went out of business and onefourth of the operating companies showed no profit at all in 1954, according to the Southern Pine Industry Com mittee. Production of Southern pine tumbled from about 4.8 billion board feet in 1947 to about 3.8 billion in 1953 in District states, where about one-half of the nation’s output is produced. These declines were part of a secular downtrend that began in the District in 1925. Large-scale operations had characterized the preceding era, and after the virgin forests had become practically depleted, many big operators moved to the Pacific Northwest. In 1919, the District states produced 29 percent of total lumber output in the nation; by 1953 the proportion had fallen to 17 percent. Econom ic C on trib u tion Although less so than in the past, lumbering still makes a tremendous economic contribution in every District state. Second only to textile manufacturing, lumber and wood products (excluding furniture) provided jobs to some 160,000 District workers in 1954, or about one-sixth of total manufacturing employees. Scattered throughout the region and often located in rural areas, sawmill opera tions are a major source of cash income in many small com munities. Southern pine provides the raw material for other District industries, such as naval stores and paper. Manufacturing and Lumber Employment District States, 1947-55* p e rc e n t p e rc e n t The basic process in manufacturing Southern pine is similar to that used for other types of wood. Trees are felled, limbed, and cut into suitable lengths. The resulting logs are then skidded to a central place where they are loaded on a vehicle and hauled to a sawmill. Here the logs are fed through a saw that reduces them to boards or planks of the desired thickness, after which they are conveyed to edgers and trimmers. The lumber is then ready to be airor kiln-dried for seasoning purposes and is later graded and sorted. Finally, in a planing mill, the rough dry lumber is dressed smooth and sometimes further processed. S tru ctu re The nature of the timber resources has imposed special characteristics on the Southern pine industry. Generally of second or third growth and principally found in small scat tered tracts, the timberstands in this region lend themselves best to small operations. That small operators are the prin cipal lumber producers is evident from Census data. Num bering about 11,000 in 1947, small-size mills (those pro ducing less than three million board feet annually) com prised 96 percent of the mill population in District states and produced almost two-thirds of the total lumber. The Southern pine industry is also known for a high rate of turnover in number of mills. In 1947, a fairly good year from a market standpoint, some 1,432 mills in District states were idle and 545 new ones were organized. The ease with which firms enter this business reflects the insignificant amounts of capital and manpower neces sary. The equipment required for starting a small mill that saws approximately 5,000 board feet of lumber daily costs less than $ 10,000 , and such a mill can be operated with about eight men, excluding loggers. Many of the District’s small sawmills are of the portable type. Operating in the midst of a small timberstand, they can be easily moved to another tract when the supply of available logs has been exhausted. Typically, such mills are the properties of part-time farmers or small business men. In some instances, they employ loggers, although many producers now obtain their logs from contractors, which eliminates the purchase and upkeep of logging equip ment as well as the supervision of the logging crew. That small producers usually do not have finishing ma chines and facilities for seasoning has given rise to an im portant processing and manufacturing establishment—the concentration yard. These yards buy, from small sawmill operators, rough green lumber which they season, dress, and grade and eventually sell, either to outside markets or directly to local users. Some concentration yards also oper ate a permanent sawmill or one or more portable sawmills. Although fewer in number than small mills, large saw milling establishments still account for a fairly important share of total production. These mills are permanent instal lations with an elaborate plant for manufacturing finished lumber, including dry-kilns and planing facilities. Some times they cut hardwood as well as pine. Unlike the typical small operator, they usually possess timber tracts of their 3 Lumber Production in United States Yellow Pine Production in District States 1904-53* b illio n s o f bd. f t . b i l li o n s o f bd. ft . own. But because the sawtimber on his own land may fall short of his everyday log requirements and because he may wish to build up his forest, the large operator is commonly obliged to buy stumpage (standing timber) and, to a lesser extent, green lumber from small mills. F inan cin g Lumber producers obtain their capital from various sources. Concentration yards frequently finance the small mills. If a yard extends a loan to finance timber purchases, the mill must contract to sell its output to that yard until the obligation is discharged. Some District bankers also lend to small operators, but others consider many of them poor risks because of their unstable nature and inadequacy of in vested capital. The larger concern, however, often has its own funds to finance production and distribution, but some times large firms do borrow from banks for short periods. Lumber concerns use borrowed funds primarily to carry inventories and to purchase timber and equipment. Since sawmills usually must pay for timber as soon as it is cut, some banks accommodate them by lending against timber contracts. To the extent that the larger mills do not market their lumber until after it is properly seasoned and must carry various grades of finished lumber in stock, substan tial amounts of working capital become tied up. Some Dis trict banks, therefore, advance funds against inventories— commonly by a field warehousing arrangement. In lumber ing, this technique is highly specialized and complex, since lumber is poorly suited as collateral. Banks that engage in equipment financing often prefer to lend on trucks rather than on specialized machinery and, since much of the lumbering equipment wears out quickly, they often insist on rapid repayment. Loss o f M a rk ets Known for its strength and nail-holding power, Southern pine has many sales outlets. Its most extensive use is in the building of homes, but large quantities go into the produc tion of boxes and crates; lesser amounts are used in railway construction and other industrial fields. The industry has recently suffered a declining market for its products. In residential building, for example, lumber consumption dropped, according to the Stanford Research Institute, from 18,900 board feet per dwelling unit in 1920 to 10,520 board feet in 1953. About one-half of this decline is attributable to the use of competing ma terials; the remainder to changes in size and architecture of homes. The use of lumber fell more rapidly between 1950 and 1953 than it did in the previous thirty years, according to the same report, because of a change in trend to low-cost, slab-type construction. C o m p e titio n fr o m D o u g la s Fir Additional competition has come from brick, tile, sheet rock, and concrete and from other forest products, such as paperboard, masonite, veneer, and plywood, as well as from other types of lumber. Inroads by Western soft woods have been a particular source of difficulty to South ern pine producers. Whereas total consumption of Southern pine fell 8 percent between 1947 and 1954, Douglas fir consumption rose 21 percent. The severity of this com petition is reflected by rising shipments of Douglas fir into the Southern pine producing states themselves, despite freight costs that are equivalent to as much as 50 percent of the f. o. b. mill price (per 1,000 board feet). Southern producers find it even more difficult to compete in Northern states, to which they once shipped large quantities. The Western mills’ ability to outsell Southern pine pro ducers is largely attributable to their lower costs. It takes from one-third to one-half as many manhours to log and manufacture 1,000 board feet of Douglas fir as it does to produce a like amount of Southern pine. This is because in the West, trees are much larger, volume per acre is higher, and mechanization is greater and, therefore, the wage levels and proportion of skilled workers are higher. In c r e a sin g C osts Rising costs in manufacturing Southern pine have made for additional pressure, especially since wholesale pine prices have been held down. Stumpage prices, which to the typical small producer constitute the largest portion of his total costs, have shown a sharp upward trend since 1949. Many mill owners in the District consider this the principal cause for the declining number of mills and lowered production. Declines in the local supply of suitable timber and in the large-size and high-quality trees in many areas are respon sible for the higher stumpage prices. Also, an increasing number of timberland owners have learned that they can enhance the value of their tracts by careful management and they have become reluctant to sell except at unusually good prices. Loss of skilled labor to industries offering higher wages has also increased costs to pine producers. Sawmill operators have made concerted efforts to reduce their work force by increased mechanization. The use of power chain saws has become more widespread, and the replacement of animals with tractors has continued. Even portable mills often have chain saws and tractors. At the larger mills, handling of materials has become highly mech anized. Furthermore, within the last few years an increas ing number of mills have installed debarking machines, which strip the bark from the logs before sawing. The outside pieces of the log left after sawing, or slabs, are 4 made into chips for sale to pulp mills. Since this reduces the cost of producing the lumber by about four dollars per 1,000 board feet, sawmills that have the equipment gain a considerable advantage over those that do not. A con comitant benefit of this development is the reduction in the waste common to some sawmill operators. Future The most immediate problem confronting the industry is the increase in the minimum hourly wage from 75 cents to one dollar. More than four-fifths of the workers in Southern pine sawmills in early 1955, but few lumber workers else where, earned less than the new minimum. To offset this comparative disadvantage, Southern pine producers will be forced to mechanize further. Since the nature of small saw milling operations severely limits the application of ma chinery, the larger mills are likely to become more im portant at the expense of the smaller ones. The quality of the finished pine lumber produced in the future will be a strong determinant of sales and production. A good deal of Southern pine that was sold immediately after World War II lacked proper seasoning, according to some observers, and therefore, caused considerable con sumer resistance. Standard grading rules, which require that lumber be dried to certain specifications, have been adopted by more and more producers, but they still cover only little more than half of the total Southern pine output. Markets for Southern pine will depend heavily on the level of housing and industrial activity and on scientific de velopments in lumber substitutes. According to the afore mentioned Stanford Report, the amount of lumber per dwelling unit will decline still further. Another potentially adverse factor is the effects on sawtimber prices of a possible sharp expansion in demands for logs by pulpwood producers. Moreover, the better-quality species of Southern pine sawtimber apparently is still declining in some areas. On the other side of the ledger are a number of favorable elements for the future. According to the United States Forest Service the annual rate of growth of softwood saw timber in District states in 1952 was 12 percent greater than the drain on sawtimber for all purposes. Although the productivity of recently cut lands, especially on small private ownership lands, is still relatively poor in the South, improved management practices induced by tree-farm and other programs are beginning to pay dividends. Another favorable aspect is that the average rate of growth of Southern pine is greater than that of woods in most other parts of the country. And since the Pacific Northwest will eventually exhaust its virgin timber, com petition from that area will probably diminish. Finally, greater development of new products made of Southern pine and the creation of new markets for present products are foreseeable. One of the most promising developments of this type is the use of glued laminated construction. The Southern pine industry will undoubtedly continue to make a substantial economic contribution in this region. Harry Brandt Banking Facilities Keep Pace with Prosperous South A substantial addition to the number of banking facilities has accompanied a growth of banking resources in the Sixth District states during the war and postwar periods. There were 391 more banking offices here at the end of 1954 than there had been at the end of 1939; this number includes 190 new banks and 201 new branches. It appears likely that by the end of 1955, there will have been an addition of 60 more new offices. The figure 391 repre sents an increase of 27 percent, which compares with one of only 13 percent for the nation as a whole. Like the increase in banking resources, it reflects the area’s greaterthan-national rate of expansion. Commercial banks help in the smooth functioning of the economy in many other ways besides granting credit. Among the many services they provide, they give their cus tomers a safe place to keep their funds and they furnish a means of convenient payment in the form of checks. To provide these services, a commercial banking system must have not only adequate resources but also banking offices that are conveniently accessible to its customers. How many banking offices an area can support, how ever, is more than a matter of how many people live in the area; it is a matter of the amount of financial resources of the community. The success of a new banking office de pends upon its ability to attract and retain the deposits needed to insure a profitable operation and upon the potential loan demand in the area. Persons interested in opening a banking office, therefore, usually make a study of the resources available in the community to determine the need for such an establishment. Thus it has been the growth in financial resources in the District that has made possible the new banking facilities. In 1939, per-capita deposits amounted to $170 in the District states; at present the figure is $679. The pattern of location and type of office opened have varied from state to state within the District, depending on population shifts, on economic changes, and on banking legislation. State laws are the most important factor de termining the type of new banking office. In terms of net additions, Florida, which prohibits branch banking, has met the needs of its growing com munities by opening 59 new banks since 1939. In Georgia, where banks may open branches in the city of the main office provided the city has a population of 80,000 or over, the new offices consisted of 80 banks and 25 branches. In other states where branches are permitted in the same county as the parent bank, greater relative use of branches was made. In Alabama, 25 new banks and 13 branches 5 Net Additions to Banking Facilities, by State* New Banks and Branches, Member and Nonmember From Jan. 1, 1940 through Dec. 31, 1954 num ber -5 num ber -------------------------------------------------------------------------------------------- ---------------------------------- 1-5 A la . F la . Ga. La. M iss. Tenn. -Includes all of each state. were opened. Louisiana has 27 new banks and 47 branches. Tennessee showed a decline of one bank but a gain of 73 branches. In Mississippi, which permits branches provided they are established within a radius of 100 miles of the parent banks, no new banks were established but 42 branches were opened. (See Chart 1.) More detailed data are available for the 1945-54 period. These data show that although state laws set the framework for establishing the type of banking facility, they are only of secondary importance in determining location. Since much of the increase in population occurred in and around large cities, the need for banking facilities in these areas was extremely great. In a large city, however, a small be ginning bank finds it difficult to compete with the large and well-established banks. As a result, when state laws permit, branches are usually established in newly developed areas of the city by the older, going banks. In the suburban areas also, it is easier to start a new branch than it is to open a new bank, particularly because T a b le 1 G e o r g ia M is s is s ip p i L o u is ia n a o f C ity ^ (in cq B a n k B ra n ch B a n k B ra n ch Bank B ranch B a n k B ra n ch B a n k B ra n ch T en n essee B ra n ch 1 F lo r id a i A la b a m a 1 1 7 9 18 3 0 3 1 7 8 11 10 15 44 0 0 0 0 0 3 3 16 18 40 20 0 0 0 20 1 0 8 4 13 10 4 3 4 21 0 0 1 3 4 7 1 0 1 9 1 1 2 2 6 17 3 3 4 27 th o u s a n d s ) 50 and over 15 to 50 2.5 to 15 Under 2.5 Total T a b le 2 New Branch Banks Opened By Size o f Parent Bank and Size o f C ity F rom Jan. 1, 1945 through Dec. 31, 1953 Sixth D istrict States* P o p u la tio n B ra n ch and over 100 to 500 50 to 100 25 to 50 10 to 25 Under 10 Total 500 S iz e o f (in C ity (in th o u s a n d s ) Over 100 1 22 0 0 2 6 31 50 to 100 3 5 7 0 0 5 20 o f P a ren t m illio n s o f B a n k d e p o s its ) 20 to 50 10 to 20 Under 10 Total 2 0 6 0 36 1 8 0 15 2 6 0 6 4 2 0 4 0 1 1 9 2 2 17 84 9 21 3 * I n c lu d e s o n ly S ix th D is tr ic t p o r tio n s o f L o u is ia n a , M is s is s ip p i a n d T e n n e s s e e . Bank Announcements The Merchants Bank of Miami, Miami, Florida, a newly organized, nonmember bank, opened for business N o vember 14 and will remit at par for checks drawn on it when received from the Federal Reserve Bank. Its offi cers are H. T. Maroon, President; Ronald N. Aurswald, Executive Vice President; Gregory Constantine, A . E. Schrader, and M. E. Stephens, Vice Presidents; and James M. Lord, Cashier. The bank's capital amounts to $400,000, and surplus and undivided profits to $200,000. New Banking Offices Opened F rom Jan. 1, 1945, through Dec. 31, 1953 Sixth D is tric t States* P o p u la tio n the name of the city bank is already well known and cus tomers can conduct their bank business either in their own neighborhood or in town without changing their banking affiliation. Furthermore, in these areas loan demand tends to be comparatively weak. Whether a bank can establish a branch in the suburbs, however, depends upon state legislation. In states prohibiting branch banking and in states limiting branches to the incorporated area of the city in which the main office is located, new banks are opened in suburban areas to provide banking services. Because the laws of most states in the District permit branch banking within the same county, it is generally the practice to meet much of the need for banking facilities in and around large cities by opening new branches. Indeed, many of the new branches in cities of less than 15,000 population, as is shown in Table I, were actually in sub urban areas of large cities. Since most states prohibit branch banking beyond the limits of the county of the parent bank, needs for banking facilities in smaller rural communities were met by estab lishing new banks. In Alabama, for instance, where there was an apparent need for 20 new banking facilities in small cities between 1945 and 1953, the need was met by the establishment of 16 new banks and only 4 branches. C h a r l e s S. O v e r m i l l e r On November 18 the Richmond County Bank, A u gusta, Georgia— another newly organized, nonmember, par-remitting bank— opened for business. Officers of this bank are Spencer L. Hart, President; W. C. Clary, Jr., Vice President; and Henry B. McNorrill, Cashier. It has capital of $100,000 and surplus and undivided profits of $100,000. The Federal Reserve Bank of Atlanta is pleased to welcome a new member into the Federal Reserve System— the newly organized Florida National Bank at Arlington, Arlington, Florida, which opened for business November 25. Its officers are Byruss Lee, President; H. E. Lewis, Vice President; and Herman A . Alexander, Cashier. Capital stock totals $150,000 and surplus $50,000. Another new member of the System, the City National Bank of Clearwater, Clearwater, Florida, opened for business November 19. Officers of this bank are Addi son A . Wakeford, President; Earle L. Divers and John L. Martens, Vice Presidents; and Edwin A . Branson, Cashier. Capital stock amounts to $300,000 and surplus and undivided profits to $200,000. 6 Sixth District Statistics In s t a lm e n t C a sh Condition of 27 Member Banks in Leading Cities Lo a n s (In Thousands of Dollars) Outstandings Percent Change Oct. 1 9 5 5 from Volume Percent Change Oct. 1 9 5 5 from No. of Lenders Lender Federal credit unions . . State credit unions . . Industrial banks . . . . industrial loan companies Small loan companies . Commercial banks . . . . . . . . . . . . . . 15 . S . 11 . 28 . 33 Sept. 1955 Oct. 1954 Sept. 1955 Oct. 1954 —6 + 17 +0 + 16 —9 + 56 + 25 1 1 1 —1 +1 +1 + 21 + 16 + 18 +9 + 64 + 20 —28 —7 + 12 —0 —5 + + + + 14 + 23 + 13 +1 + 10 +5 . . +9 + 25 +7 +8 +9 +3 Wholesale Sales and Inventories* Type of Wholesaler Sales Percent change Oct. 1 9 5 5 from N'' or Sept. Oct. Firms 1955 1954 Grocery, confectionery, meats Edible farm products . . . Drugs, chems., allied prods. . Drugs ...................................... A u to m o tiv e ................................. Hardware, plumbing & heating g o o d s ...................... Machinery: equip. & supplies In d u stria l................................. Iron & steel scrap & waste m a te ria ls ................................ IS 14 16 7 44 +2 + 20 —7 +1 +9 —9 +9 + 15 + 12 24 36 25 +7 +3 +6 +9 + 23 + 24 7 + Inventories Percent change Oct. 1 9 5 5 from No. of Sept. Oct. Firms 1954 1955 +6 12 + 9 42 23 21 15 —0 +1 + 13 + 12 + i2 +8 + 18 + 20 *Based on information submitted by wholesalers participating in the Monthly Wholesale Trade Report issued by the Bureau of the Census. Percent Change Place ALABAMA ................................ Birm ingham............................ M obile....................................... Montgomery............................ FLORIDA ................................ Ja ck so n v ille ........................... O r l a n d o ................................ S t. Ptrsbg-Tampa Area . . S t. Petersburg . . . . T a m p a ................................ GEORGIA ................................ A tla n ta * * ................................ A u g u s t a ................................ Columbus................................. M a c o n ...................................... R o m e * * ................................ Savannah** ........................... LOUISIANA................................ Baton R o u g e ...................... New O r l e a n s ...................... MISSISSIPPI ........................... Jackson ................................ , M e r id ia n * * ........................... TENNESSEE ............................ Bristol (Tenn. & V a.)**.. Bristol-KingsportJohnson City** . . . Chattanooga ........................... . Knoxville................................. . N a sh v ille ................................ DISTRICT ................................, Inventories 1 0 Months 1 9 5 5 from 1954 8 +8 +9 +9 + 11 +7 + 16 +6 +9 +5 +9 +2 + 11 + 12 +2 + 18 +7 + 10 +8 +7 +4 +7 +4 +2 + 11 +8 + 16 + 11 + 25 + 11 + 35 + 40 + 32 + 30 + 32 + 28 +4 —1 + 12 + 19 + 11 + 41 +7 + 17 +3 + 20 + 21 + 17 + 30 + 17 + 13 + 17 + 13 + 15 + 20 + 18 + + 10 —3 + 21 +5 +7 + 11 + 12 + 10 +2 +2 —3 +9 +3 + 18 —2 +6 +1 +7 +5 +3 + 19 +8 +8 +8 +4 + 11 +8 +9 —2 +1 +0 + 13 +8 11 + Oct. 3 1 , 1 9 5 5 , from Sept. 3 0 , Oct. 3 1 , 1954 1955 +3 +2 +4 +4 8 +2 +1 —1 +6 + + + 6 6 +5 +4 , + . 11 + io + 12 + i2 +2 +5 + 15 +4 +7 + 10 +8 + 15 + 10 + 11 + ib +3 + i4 +3 + 16 + 63 +4 + 10 + 10 +5 + 13 ^Reporting stores account for over 9 0 percent of total District department store sales. **ln order to permit publication of figures for this city, a special sample has been con structed that is not confined exclusively to department stores. Figures for nondepart ment stores, however, are not used in computing the District percent changes. 8 9 9 ,2 8 0 8 0 7 ,1 9 7 +4 + 16 2 6 ,5 4 0 2 1 ,1 9 0 +4 + 30 3 9 ,7 3 5 1 5 5 ,6 3 5 1 6 ,4 9 5 5 2 1 ,3 3 4 1 ,6 9 3 ,8 2 3 3 7 ,1 5 1 1 0 5 ,8 3 7 2 ,8 4 7 4 2 4 ,3 2 7 1 ,9 2 4 ,1 9 7 +6 +2 + 13 + 50 * + 26 — 13 6 1 5 ,2 8 3 7 5 4 ,0 0 6 3 2 4 ,5 3 4 4 9 1 ,4 3 1 5 1 ,9 0 0 7 1 8 ,4 7 4 8 9 6 ,1 8 7 3 0 9 ,5 3 6 5 2 2 ,4 6 6 4 5 ,2 7 4 2 4 7 ,4 2 1 2 ,3 4 3 ,2 5 2 6 2 7 ,3 5 2 9 9 ,7 6 2 6 8 8 ,7 9 8 5 5 ,2 5 0 2 6 0 ,4 9 7 2 ,2 9 8 ,9 2 6 6 1 5 ,2 7 1 1 6 7 ,0 3 1 7 2 2 ,4 5 9 4 4 ,4 0 0 +1 +4 +4 + 24 +3 —1 —3 +2 + 23 + 23 —0 —0 +1 —5 — 17 — 16 +5 —5 +9 +4 —1 +2 +1 —6 +5 —42 +4 +3 —4 4 +0 —28 percent or over. ALABAMA A n n is to n ..................... Birmingham . . . . Gadsden ..................... Montgomery . . . , Tuscaloosa* . . . FLORIDA Jacksonville . . . . M i a m i ...................... Greater Miami* . . , Department Store Sales and Inventories * Sales 3 ,3 0 0 ,8 8 8 1 ,3 7 6 ,6 9 1 1 ,3 9 8 ,5 4 9 (In Thousands of Dollars) 68 Oct. 1 9 5 5 from Sept. Oct. 1955 1954 3 ,3 2 8 ,4 2 6 1 ,6 3 4 ,6 0 3 1 ,6 5 9 ,0 1 9 Debits to Individual Demand Deposit Accounts + 15 + 19 + 13 9 3 ,3 7 1 ,9 8 6 1 ,6 9 8 ,7 8 3 Loans— G r o s s ........................... 1 ,7 2 3 ,0 9 9 Commercial, industrial, and agricultural loans . 9 3 9 ,0 5 9 Loans to brokers and dealers in securities . 2 7 ,6 0 7 Other loans for purchasing or carrying securities . 4 2 ,0 7 8 1 5 8 ,4 3 0 Real estate loans . . . . 2 0 ,4 4 8 Loans to banks . . . . 5 3 5 ,4 7 7 Other loans ........................... Investments— Total . . . . 1 ,6 7 3 ,2 0 3 Bills, certificates, 5 9 7 ,7 5 6 and notes .......................... 7 5 1 ,2 1 8 U. S. bonds .......................... Other securities . . . . 3 2 4 ,2 2 9 Reserve with F. R. Bank . 4 9 8 ,3 9 1 4 9 ,5 2 7 Cash in v a u l t ........................... Balances with domestic 2 5 8 ,3 0 7 Demand deposits adjusted . 2 ,3 9 3 ,9 7 2 Time d e p o s its ........................... 6 3 1 ,7 9 1 9 3 ,9 9 2 U. S. Gov’t deposits . . . 7 2 4 ,3 1 6 Deposits of domestic b an k s. 3 1 ,9 0 0 *100 +9 +2 +5 11 Nov. 1 7 1954 Loans and investments— Percent Change October, 1 9 5 5 , from Sept. 1 9 5 5 Oct. 1 9 5 4 Total s a l e s ................................... Cash sales ................................... Instalment and other credit sales . Accounts receivable, end of month Collections during month . Inventories, end of month . Oct. 1 9 1955 Item Retail Furniture Store Operations Item Percent Change Nov. 1 6 , 1 9 5 5 , from Oct. 1 9 Nov. 1 7 1955 1954 Nov. 1 6 1955 Pensacola . . . . S t. Petersburg . . West Palm Beach* GEORGIA . Augusta . . . . Brunswick . . . . Gainesville* . . . Griffin* . . . . Savannah . . . . Valdosta . . . . LOUISIANA Alexandria* . . Baton Rouge . Lake Charles . . New Orleans . . MISSISSIPPI Hattiesburg . . Meridian . . . . . . . . . . TENNESSEE Bristol* . . . . Chattanooga . . . Johnson City* . . Kingsport* . . . Nashville . . . . SIXTH DISTRICT 3 2 Cities . . . . UNITED STATES 3 4 5 Cities . . . Percent Change Oct. 1 9 5 5 fromi n Months Oct. Sept. Oct 1 9 5 5 from 1954 1955 1954 1954 Oct. 1955 Sept. 1955 3 7 ,5 7 8 6 1 0 ,7 2 0 2 4 ,9 5 4 3 1 ,6 1 8 2 0 6 ,7 5 9 1 2 2 ,3 1 6 4 3 ,8 9 0 3 5 ,7 5 9 6 0 5 ,5 8 7 2 3 ,3 8 1 3 0 ,9 3 2 2 2 8 ,8 3 8 1 2 9 ,8 4 6 4 1 ,9 1 8 3 2 ,3 0 7 4 9 5 ,9 7 9 1 9 ,6 1 1 2 6 ,8 3 0 1 7 4 ,4 2 7 1 0 9 ,0 6 2 3 8 ,2 3 0 5 2 5 ,8 0 7 4 8 3 ,5 6 2 7 5 3 ,1 2 5 1 0 5 ,9 9 0 6 5 ,0 8 3 1 1 7 ,3 8 7 2 2 2 ,4 0 7 7 1 ,6 7 5 5 4 6 ,7 1 0 4 7 1 ,4 3 6 7 2 3 ,1 7 4 1 0 6 ,8 4 0 6 5 ,1 3 9 1 1 5 ,5 2 3 2 2 2 ,2 8 8 6 3 ,6 2 0 4 6 4 ,7 9 4 3 9 8 ,9 1 5 6 2 5 ,5 8 0 9 4 ,2 5 6 5 3 ,3 7 5 5 2 ,7 0 3 1 ,4 9 6 ,8 1 5 9 4 ,7 0 4 1 6 ,3 7 0 1 0 4 ,5 3 0 6 ,4 6 1 4 3 ,4 4 2 1 6 ,5 5 7 9 8 ,9 4 6 1 4 ,9 0 9 4 4 ,6 5 9 1 3 8 ,8 7 9 2 3 ,6 1 1 4 8 ,8 9 9 1 ,4 6 5 ,5 5 0 9 4 ,7 6 1 1 4 ,2 8 1 9 8 ,5 2 8 6 ,2 7 6 4 2 ,2 1 7 1 6 ,2 6 1 9 8 ,5 4 0 1 3 ,8 2 4 4 0 ,0 7 4 1 3 4 ,3 8 3 2 8 ,0 1 2 5 3 ,2 6 7 1 ,3 5 1 ,9 0 1 9 6 ,9 2 6 1 3 ,8 5 0 8 7 ,4 0 7 6 ,0 5 4 3 3 ,2 1 5 1 5 ,6 7 1 9 6 ,8 9 7 1 1 ,6 6 7 3 8 ,1 5 1 1 2 9 ,7 0 1 1 9 ,7 2 5 5 3 ,4 1 7 1 5 4 ,6 1 3 7 1 ,5 1 5 1 ,0 7 2 ,1 8 9 5 7 ,9 4 0 1 5 0 ,2 5 2 6 6 ,5 8 9 1 ,0 5 0 ,3 1 4 5 1 ,1 0 8 1 3 6 ,8 5 3 6 6 .4 9 8 9 7 8 ,3 4 5 2 6 ,8 6 7 1 9 2 ,1 4 4 3 2 ,8 2 0 1 8 ,4 2 8 2 7 ,2 3 4 1 8 9 ,5 6 4 3 5 ,2 2 4 1 7 ,0 0 1 2 2 ,1 7 7 1 6 6 ,4 5 0 3 0 ,8 7 9 1 7 ,1 7 4 3 3 ,6 3 5 2 3 6 ,0 0 5 3 3 ,8 3 4 6 4 ,1 3 1 1 6 4 .9 7 7 5 2 8 ,7 2 2 3 2 ,1 0 2 2 4 8 ,2 5 5 3 5 ,1 4 9 58038 1 6 5 ,9 1 4 5 1 6 ,4 5 8 2 8 ,3 9 3 2 2 8 ,5 8 0 3 0 ,6 8 4 5 3 ,3 4 2 1 6 1 ,0 0 6 4 5 4 ,9 7 0 7 ,1 0 0 ,3 8 9 7 ,0 5 2 ,1 3 8 6 ,2 9 2 ,7 6 9 102,020 1 9 0 ,8 6 6 5 1 ,1 9 7 1 7 5 ,8 0 7 ,0 0 0 1 6 9 ,0 0 1 ,0 0 0 1 ,6 6 9 ,8 4 8 ,0 0 0 *Not included in Sixth District totals. 7 +5 +1 +2 —10 —6 +7 +5 —4 +3 +4 —1 —0 +2 +0 + 13 +8 +2 —0 + 15 +6 +3 +3 +2 +0 +8 + 11 +3 —16 —8 +3 +7 +2 —1 +1 —7 +8 +5 —5 —4 + 10 —1 +2 +1 +4 + 16 + 23 + 27 + 18 + 19 + 12 + 15 +12 +22 + 11 + 21 +20 + 18 + 12 + 13 + 13 + 23 + 25 + 26 + 12 +21 +20 + 12 +22 + 15 + 17 + 40 —1 11 —2 + 18 +20 + +7 + 31 +6 +2 + 28 + 17 +7 +20 +5 + 13 +8 +10 + 21 + 15 +6 +7 + 18 +3 + 10 + 20 +2 + 16 +21 + 16 + 23 + 19 + 12 + 11 +8 + 18 +7 + 29 +10 + 15 + 23 +21 +10 + 17 +10 +11 + 16 + 10 + 13 + 13 + 13 +6 +8 + 11 + 11 + 27 + 10 + 13 + 13 + 14 + 15 +8 Sixth District Indexes 1 9 4 7 -4 9 Nonfarm Employment SEASONALLY ADJUSTED District T o t a l ................................ 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 ississip p i................................ T e n n e s s e e ................................ UNADJUSTED District T o ta l................................ A labam a....................................... F l o r i d a ...................................... G e o r g i a ...................................... L ouisiana..................................... M ississip p i................................ T e n n e s s e e ................................ . Manufacturing Employment Sept. 1955 Aug. 1955 Sept. 1954 Sept. 1955 Aug. 1955 122 121 118 114 106 142 119 99 114 114 114 115 109 135 114 lO lr 134 111 116 115 115 115 112 111 110 135 120 113 140 125 116 118 117 109 140 125 116 117 117 116 115 115 122 120 118 114 134 125 117 119 118 109 132r 125 116 118 117 111 129 119 117 117 116 101 144 120 101 114 114 121 101 121 102 Sept. 1954 110 101 138r 112r lO lr 110 109r 103 131r 114 103r = 1 0 0 Manufacturing Payrolls Sept. 1955 Adjusted Sept. 1954 Oct. 1955 Oct. 1954 Oct. 1955 Sept. 1955 140 150 119 117 130 107 129 150 132 136r 138r 115 124r 135r lllr 122r 143r 139r 123r 133r 142r 126r 142r 1 5 4p 151 136 158 124 125 131 113 149 141 116 125 126 115 163r O Reserve Bank Cities • Branch Bank Cities mm District Boundaries ■— Branch Territory Boundaries ^ Board of Governors of the Federal Reserve System 107 106 111 110 84r 96 171 163 189 181 155 180 171 164 141r 186 176 152 178r 170r 153r 141 179r 152r 147r 171 157r 120p 110 111 197 235 221 359 174 276 207 266 147 623 359 301 214 284 279 242 257 177 112 114 115 118 119 113 115 127p 135 124 120p 85r 98p 119 117 121 108 123 113 117 93 Other District Indexes Oct. 1955 Oct. 1954 C h e m ic a ls ...................................... Fabricated m e ta ls ...................... 131 144 126 156r 111 Oct. 1954 1 03p aTo permit publication of figures for this city, a special sample has been constructed th a t is not confined exclusively to department stores. Figures for nondepartment stores, however, are not used in computing the D istrict index. *For Sixth D istrict area only. Other totals for entire six states. **Daily average basis. Sources: Nonfarm and mfg. emp. and payrolls, state depts. of labor; cotton consumption, U. S. Bureau Census; construction contracts, F. W. Dodge Corp.; furn. sales, dept, store sales, turnover of dem. dep., FRB A tlanta; petrol, prod., U. S. Bureau of Mines; elec. power prod., Fed. Power Comm. Indexes calculated by this Bank. 122 134 142 125 152 165 151 134 145 157 141 1 7 0p Sept. 1955 177 152 174 167 201 Construction contracts* . . . . R esidential...................................... 122 Oct. 1955 120p 1 2 9p 129 128p 124p 141r 148r 119 124r 137r 121r 145r 148r 146r 125r 135r 142r 128r 155r 148p 141 Baton R o u g e ........................... 1 1 9 B irm ingham................................. 1 3 4 140 114 128 160 144 133 New O r l e a n s ........................... 1 4 2 S t. Ptrsbg-Tampa Area . . 1 5 7 T am pa............................................ 1 3 8 156p DISTRICT STOCKS* . . . . DISTRICT SALES*...................... Oct. 1954 152r 137 1 9 0f 149 144 r 166 154r Unadjusted Sept. 1955 Sept. 1955 Furniture Store Sales*/** 166 141r 203 178 151 176r 172r 170 158 Department Store Sales and Stocks** Oct. 1955 Aug. 1955 Construction Contracts Petrol, prod, in Coastal Louisiana and Mississippi** . Furniture store stocks* . . . . Turnover of demand deposits* . 10 leading c i t i e s ...................... Outside 1 0 leading cities . . . 155 . HOp . 20.0 . 2 0 .4 . 1 6 .0 Sept. 1955 Elec. power prod., total** Mfg. emp. by type 154 108r 20.6 22.0 1 7 .8 Aug. 1955 127r 107 20.2 2 0 .5 1 6 .5 Sept. 1954 . . Lbr., wood prod., furn. & fix. Paper and allied prod. . . . Primary m e ta l s ........................... Trans, equip................................... r Revised Adjusted Sept. Oct. 1955 1954 p Preliminary . 152 . 130 . 161 . 106 . 83 . 152 . 106 . 95 . 189 152 131 164r 107 83 153 83r 95 194r 142r 126r 156r 106r 82r 145r 94r 93 165r Oct. 1955 Unadjusted Sept. Oct. 1954 1955 255 237 268 264r 195r 315r 155 114p 152 108r 20.0 21.2 1 6 .8 Sept. 1955 21.0 22.2 1 7 .8 Aug. 1955 256 275 242 127r 111 20.2 2 1 .3 1 7 .3 Sept. 1954 273 276 213r 154 132 162 107 83 153 106 97 187 154r 127 162 r 109r 84 153 83r 95 186 144r 127r 157r 108r 82 r 146r 94 94 164
@FedFRASER