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IN THIS ISSUE: • Is the Consumer Behaving? •T ennessee’s Pace Begins To Slacken REVIEW FEDERAL RESERVE • District Business Conditions BANK OF A T L A N T A OCTOBER 1969 Is t h e C o n s u m e r B e h a v i n g ? Sometimes consumers surprise even the keenest analysts of economic activity. Such has been the case for th e last year. In the sum m er of 1 9 6 8 , consumers continued to spend heavily even in the face of the newly enacted 10-percent surtax. Now, over a year later, they are spending more cautiously. Personal income has continued to grow in 1 9 6 9 , b u t by m id-year it had n o t increased as rapidly as it did in 1968. Sharply rising prices have eroded income gains, and consumers have apparently become less eager to p a rt with their hard-earned dollars for m any goods b u t not for services. R ecent consumer behavior, coupled with other economic factors, therefore, has been instrum ental in bringing about an easing in the m om entum of the D istrict’s economy and of the n ation’s. Personal income, the fountainhead of consumer activity, has con tinued to grow in recent months at about the same rate in the District as in the nation. Billion * Billion I Personal Income -B O O 7 0 - — Persanal Income — 23 Billion * Persanal Incame -11 -7 0 0 District 60 -6 0 0 I ‘6 7 '68 I '6 9 In the District, growth in personal income has varied by state, with Florida leading and Georgia placing second. 122 ‘6 7 68 '6 9 '6 7 '6 8 '6 9 1957-59=100 Consumer Price Index -1 3 0 -1 2 5 -120 -1 1 5 '67 68 69 Consumers, while enjoying what would appear to be sizeable income gains, seem to have realized that the magnitude of increases in their dollar incomes has been heavily reduced by rising con sumer prices. The upward movement in prices has been as sharp in Atlanta as in the nation. 1957-59=100 U.S. Consumer Price Index “ 130 - 125 -120 “ 115 '6 9 '67 '6 8 Rapidly growing prices for food and services have been largely responsible for the higher consumer prices this year. In coming months, however, retail food prices may increase less rapidly, since wholesale food prices are declining. 123 B illion $ U .S . R etail S a la s -2 9 - 27 ~ 10 The volume of retail sales indicates that consumers are realizing their in come gains are being whittled away by rising prices, and they appear to be less willing to spend than they were earlier in the year. Nondurable expenditures in the nation have pushed upward, while durable spending has lessened. - 8 - 20 - 18 a ; - 5 - 4 '67 '68 ’69 In the District, department store sales—one measure of retail activity—have shown a downward tilt since mid-1968. Several large cities in the Southeast, notably Birmingham, Knoxville, and New Orleans, have experienced considerable slackening in department store sales. Year to Year % Chg. Department Store Sales -2 5 -1 5 V ! '16 Cities '67 124 '6 8 '6 9 MONTHLY REVIEW Department Store Sales,* Year-to-Year Percent Changes Percent Percent Percent — 30 - 30 —S — 30 Birmingham L '67 "SMSA '68 — 30 —20 —20 —10 —10 Jl '6 9 '68 ’67 N ew Orleans 20 '6 9 Billion $ Instalment Credit - Sixth District Seas. Adj. - .3 6 Extensions A certain degree of hesitancy is demonstrated by a taperingoff in the use of consumer credit, including automobile financing. Apparently con cerned with keeping new debt within bounds, consumers have kept their repayments moving at about the same pace at which they incurred new obligations. - .3 2 - .2 8 V \7 — Repayments - .2 4 — Seas. Unadj. - 4 .0 - 3.6 - 3.2 - u '67 OCTOBER 1969 '68 '69 125 Million$ Savings & Loan Capital - District Status Month-to-Month Net Changes Billion $ — Consumer Time Deposits - District Member Banks -3 .5 -2 .7 I Similar to the trend in the nation, savings at selected District institutions have slowed. Consumer time deposits at member banks in recent months have actually declined, as has the savings inflow to savings and loan as sociations. '6 7 '68 '6 9 % of Disposable Personal Income — Personal Saving R ate-U .S . Seas. Adj. - 8 - 7 6 L. I '6 7 J5 68 69 In view of the historically low personal savings, consumers are not likely to increase their spending much more than the further growth in personal income. — E m erso n 126 A t k in s o n MONTHLY REVIEW T e n n e s s e e 's P a ce B e g in s T o S la c k e n After almost a decade of watching the indicators of business activity in Tennessee show proof of expansion, we should not be surprised to see some signs of less buoyancy from time to time. The economy of Tennessee, along with that of the nation, has experienced temporary downturns in the past only to move forward strongly after a short respite. Generally, it has been on an up ward course since the so-called “mini-recession” of 1966-67, but recently questions about the vigor of the nation’s economy might well cause us to wonder whether the pace in Tennessee has begun to slacken. When we compare Tennessee’s economic situa tion now with a year ago, the conclusion is that conditions still look favorable. Employment and income, for example, are up considerably from a year ago, although month-to-month changes from the first of this year to mid-summer reveal signs of a slowing-down in growth. In some cases, after normal seasonal factors are taken into ac count, actual declines are showing up. Income Levels Off A leveling-off in seasonally adjusted personal in come during the summer months this year reflects the general economic situation in the state. The lack of growth in this comprehensive measure of economic activity is in marked contrast to a nearly 8-percent increase during 1968. No single factor seems to be responsible for the recent softening in personal income. After seasonal factors are taken into considera tion, the total number of persons employed in the state did not expand during the first six months of this year, although the total employed in manufacturing increased slightly. Important exceptions occurred in the primary metals, chemicals, and textile industries, which registered substantial gains. The number of persons em OCTOBER 1969 ployed in the ordnance sector, on the other hand, has declined recently, after expanding nearly 20 percent in 1968. The real decline in workers has come in the nonmanufacturing sector, where strong gains were recorded last year. Construction employ ment in recent months has declined substantially, mirroring a general weakening in the construc tion sector. Both residential and nonresidential construction contracts have experienced a sharp decline since March. Not all nonmanufacturing employment has contracted; state and local governments have continued to add employees to their payrolls. Other signs of a slowing-down in Tennessee’s economy are appearing: Factory workers are putting in shorter hours. Even though a cutback Employment in Tennessee Percent '67 '68 '69 127 Bank* Debits at Insured Commercial Banks in District Portion of Tennessee* Patent 1957 59=100 '6 7 '6 8 '6 9 *Eastern two-thirds. in the number of hours worked has been going on, hourly wages have increased enough to just bare ly maintain some upward movement in average weekly eamings for the state as a whole. Many manufacturing industries, however, are reporting declines in both employment—after seasonal ad justment—and weekly earnings of production workers. Unemployment, although still at a low level, has increased. Spending Activity Remains Mixed While the industrial side of the economy in Ten nessee has shown definite signs of cooling off, the pattern of spending in the state is mixed. Judging by one indirect measure—seasonally ad justed bank debits or charges to checking ac counts of individuals, businesses, and govern ments—spending definitely has leveled off in re cent months. Collections of sales and use taxes grew at a slower pace during the first five months of this year than in the same period of 1968. On the other hand, new auto registrations in the state and department store sales in Chattanooga, Knoxville, and Tri-Cities combined have con tinued strongly upward. Also, Tennesseans are still expanding their instalment debt. of lower feed-grain prices. The favorable feedprice ratio, however, has led to expanded supplies of beef cattle, poultry, and pork. As a result, prices for these products have shown signs of weakening recently. In spite of higher cash receipts, net farm income has been only slightly higher than last year, ac cording to the U. S. Department of Agriculture. Tennessee farmers continue to be faced with a shortage of skilled farm labor, which has led to rising labor costs. Rising costs for farm machin ery and equipment and other expenses have also cut into their net income. New Legislation Affects Tennesseejs Banks The General Assembly of Tennessee passed several bills this spring that directly affected banks. The statutory interest rate that banks may charge on many types of loans was increased from 6 percent, a rate below that of any of the sur rounding states, to 10 percent. This action was expected to make bankers more willing to make loans, particularly in periods of higher interest rates. Loans for construction purposes and real estate mortgages—traditionally subject to de clines as interest rates rise—should be more easi ly obtainable than before. The rather large ex pansion in bank loans this spring probably re flected, in part, the more liberal conditions under which banks could lend. The other important legal banking change raised the ceiling on interest payments for time and savings deposits. From a previous limit of 4 percent, Tennessee banks were allowed, as of April 2, to pay the maximum interest rates on time and savings deposits as established by the Board of Governors of the Federal Reserve Sys tem under the provisions of Regulation Q. Loans and Deposits at Member Banks in District Portion of Tennessee* Saaa. Adj. -1 8 0 0 Farm Income Continues to Rise One part of Tennessee’s economy still going strong is the agricultural sector. Generally, gross farm income has been higher in response to higher prices for livestock and kindred products, while increased production of crops has more than offset declining prices for crops. That Tennessee farmers are collecting larger payments under the Federal Feed Grain Program for crop diversion and price support has helped offset the effects 128 - 1400 - 2800 - 2400 I 67 ’6 8 '6 9 *Eastern two-thirds. MONTHLY REVIEW The effects of allowing Tennessee banks to pay more in order to attract time and savings deposits become readily obvious when we com pare the rate of deposit growth in periods during the year ending July 1969—before banks were permitted to pay the higher rates—with cor responding periods this year after higher rates became possible. From July 1968 through March 1969, when the 4-percent ceiling was still in ef fect, time and savings deposits declined 6.5 per cent at member banks in the Sixth District por tion of Tennessee (the eastern two-thirds of the state). For the District as a whole, in the same eight months, time and savings deposits increased almost 9 percent. From the first part of April through July this year, these deposits zoomed up nearly 18 percent in Tennessee, whereas in the District they increased less than one percent. D iffe r e n t A r e a s S h o w D iffe r e n t P a tt e r n s While the state as a whole shows signs of reduced economic activity, not all its large cities present the same general picture. In Chattanooga, sea sonally adjusted bank debits in August were up over 24 percent from late 1968, whereas bank B a n k Jacksonville State Bank, Jacksonville, Alabama, a newly organized nonmember bank, opened for business on September 2 and began to remit at par. Officers are David W. Pearson, president and chairman; Ray V. Hartwell, Jr., executive vice president; C. Eugene Boyd, vice president and cashier. Capital is $140,000; sur plus and other capital funds, $210,000. Also on September 2, the Metter Banking Company, Metter, Georgia, a nonmember bank, began to remit at par. On September 3, the newly organized Peoples Hialeah National Bank, Hialeah, Florida, opened for business as a member of the Federal Reserve System. Officers are Leonard A. Usina, chairman and president; John H. Frink, executive vice president and cashier; Roland M. Stafford and George M. Vadurro, vice presidents. Capital is $400,000; surplus and other capital funds, $300,000. A newly organized bank, Siesta Key Palmer Bank, Siesta Key, Florida, opened as a member on September 5. Officers are Benton W. Powell, chairman; William C. Coleman, president; Francis D. Newell, executive vice president and cashier; James K. Rowland, as 1969 T h e F u tu re fro m H e re Do the present signs of easing point merely to a pause in the economy of Tennessee, or are they indicative of a more lengthy economic decline? It is still much too early to tell. Economic activity in Tennessee at other times has closely paralleled that throughout the nation. The nation’s economy at this writing is still on an upward course, al though it has shown signs recently of slowing down. Tennessee’s economy appears to be fol lowing a similar pattern. — J o h n M. G odfrey A n n o u n c e m e n ts On September 1, the Farmers and Merchants Bank of Pine Mountain, Georgia, and the Farmers and Mer chants Bank of Leslie, Georgia, two nonmember banks, began to remit at par for checks drawn on them when received from the Federal Reserve Bank. OCTO BER debits in the other major metropolitan areas in the District portion of the state declined. Check book spending can be an elusive indicator of spending in that it includes many purely financial transactions and bank clearings of checks from other cities. In spite of the large jump in bank debits for Chattanooga, employment since the first of the year has increased only slightly. Knoxville and Nashville, on the other hand, have posted de clines in spending, as measured by bank debits, but have experienced strong gains in employment. sistant vice president. Capital is $400,000; surplus and other capital funds, $200,000. On September 15, the Citizens and Southern South DeKalb Bank, Decatur, Georgia, opened for business as a newly organized nonmember, par-remitting bank. Officers are Warren L. Berry, president; and Dan Blackwell, cashier. Capital is $300,000; surplus and other capital funds, $300,000. Another newly organized nonmember bank, Citizens and Southern Bank of Chatham County, Savannah, Georgia, opened on September 22 and began to remit at par. Officers are J. Frank Scott, president; and Mrs. Bette B. Anderson, vice president and cashier. Capital is $250,000; surplus and other capital funds, $250,000. On September 23, a nonmember bank, CordovaCitizens Bank, Cordova, Alabama, began to remit at par. Teche Bank and Trust Company, St. Martinville, Louisiana, a newly organized nonmember bank, opened for business on September 27 on a par-remitting basis. Officers are Nolan L. Olivien, chairman; Clarence J. Duchamp, president; Tom L. Voorhies, executive vice president and cashier; Harris J. Champagne, first vice president; Tilden A. Bonin, Jr., James B. Bulliard, Lawrence P. Melancon, Murphy Oubre, vice presidents; and Owen J. Resweber, Sr., assistant vice president. Capital is $225,000; surplus and other capital funds, $225,000. 129 S ix th D is tric t S ta tis tic s S e a s o n a l ly A d ju ste d (All data are indexes, 1957-59 = 100, unless indicated otherwise.) L a t e s t M onth 1969 One M onth Ago Two M o n th s Ago O ne Year Ago S IX T H D I S T R IC T IN C O M E A N D S P E N D IN G P e r so n a l In co m e (M il. $, A n n u a l R a t e ) ...........................J u ly M a n u fa c tu rin g P a y ro lls . . . . . . A ug. F a rm C a s h R e c e i p t s ......................................J u ly C r o p s ................................................................ J u ly L i v e s t o c k ........................................................... J u ly In s ta lm e n t C re d it at B a n k s * (M il. $) N ew L o a n s ..................................................... A ug. R e p a y m e n ts ................................................ Aug. 7 1 ,6 6 4 7 0 ,9 5 6 247 244 184 196 154 204 201 173 7 0 ,2 6 3 244 173 188 172 6 4 ,7 8 0 231 159 143 159 3 1 5 .8 3 0 7 .3 3 4 4 .3 3 1 3 .2 3 0 8 .9 2 7 2 .6 148 147 175 141 169 114 106 129 139 113 216 148 137 58 148 146 175 1 40 168 115 106 129 136 113 204 148 137 62 148 146 175 139 168 117 106 130 137 113 143 141 175 135 160 113 106 126 130 3.5 2 7 9.5 2 9 7 .0 L a t e s t M onth 1969 ................................ . M a n u f a c tu rin g N o n m a n u f a c t u r in g ........................... . C o n s t r u c t i o n ................................ . F a r m E m p l o y m e n t ................................ . U n e m p lo y m e n t R a te (P e r c e n t of W ork F o r c e ) t . . • . Avg. W e e k ly H r s . in M fg. (H r s .) . . One M onth Ago Two M o n th s Ago One Year Ago A ug. Aug. A ug. Aug. 171 169 131 81 171 169 131 84 173 169 126 95 169 162 112 87 . A ug. . A ug. 2 .7 4 1 .9 2 .6 4 1 .1 2 .6 4 1 .7 2 .9 4 2 .2 . A ug. . A ug. . Aug. 374 260 278 370 261 282 366 264 287 311 235 235 1 3 ,9 7 7 261 136 1 3 ,7 6 2 253 157 1 3 ,6 2 3 256 163 1 2 ,6 6 5 236 170 149 144 152 148 58 14 9 141 152 150 55 148 140 151 151 47 144 137 147 146 2 .9 4 1 .0 3 .0 4 1 .0 3 .3 4 1 .1 3.5 4 0 .7 338 242 308 332 242 306 330 243 315 298 237 260 1 0 ,0 8 5 186 247 1 0 ,1 7 7 191 191 10,131 191 165 9 ,2 5 6 177 170 133 133 123 135 134 61 131 136 133 54 134 137 58 4 .9 4 0 .9 4 .9 4 2 .3 5 .5 4 2 .5 5.1 4 1 .2 268 179 208 268 182 205 261 180 203 238 173 189 5 ,2 9 1 263 263 5 ,2 3 1 265 204 5 ,1 4 6 264 195 4 ,7 6 2 252 175 147 156 143 148 50 147 156 143 143 62 146 157 141 136 45 4 .6 4 0 .1 4 .3 4 0 .4 4 .5 4 0 .2 4 .6 4 0 .8 388 270 259 389 266 256 385 260 264 345 248 247 . . . . F IN A N C E A N D B A N K IN G M e m b e r B a n k L o a n s ........................... M e m b e r B a n k D e p o s i t s ...................... B a n k D e b i t s * * ........................................... . . . P R O D U C T IO N A N D E M P L O Y M E N T N o n fa rm E m p l o y m e n t t ................................ A ug. M a n u f a c tu rin g ...........................................A ug. A p p a re l ...........................................................A ug. C h e m i c a l s ......................................................Aug. F a b r ic a te d M e t a l s ..................................... A ug. F o o d ......................................................................Aug. L b r ., W ood P ro d ., F u r n . & F ix . . . . A u g. P a p e r ................................................................ A ug. P rim a ry M e t a l s ...........................................Aug. T e x t ile s ...........................................................A ug. T ra n s p o rta tio n E q u ip m e n t . . . . A u g. N o n m a n u f a c t u r i n g t ..................................... A ug. C o n s t r u c t i o n ................................................ A ug. F a r m E m p l o y m e n t ...........................................A ug. U n e m p lo y m e n t R a te (P e r c e n t o f W o rk F o r c e ) t ......................A u g. In s u r e d U n e m p lo y m e n t (P e r c e n t of C o v . E m p . ) ...........................A ug. Avg. W e e k ly H rs. in Mfg. (H rs .) . . . A ug. C o n stru c tio n C o n t r a c t s * ........................... A ug. R e s i d e n t i a l ......................................................Aug. All O t h e r ...........................................................A ug. E le c t r ic P o w e r P ro d u c t io n * * . . . . J u ly Co tto n C o n s u m p t i o n * * ................................ J u ly P e tro l. P ro d , in C o a s t a l L a . a n d M is s .* * A u g . 202 112 135 58 190 142 131 63 3.5 3.7 3 .9 1.9 4 0 .8 3 10 2 75 340 164 101 248 1.9 4 0 .9 240 265 219 162 106 238 1.7 4 0 .9 215 253 183 159 104 243 4 0 .8 244 217 2 68 146 104 264 330 272 327 273 322 265 286 250 229 191 269 229 191 270 230 190 273 215 186 233 148 2.0 F IN A N C E A N D B A N K IN G P e r s o n a l In co m e (M il. $, A n n u a l R a t e ) ........................... J u ly M a n u f a c t u r in g P a y r o l l s ................................ Aug. F a r m C a s h R e c e i p t s ......................................J u ly 8 ,9 5 8 8 ,7 5 4 189 173 210 211 8 ,7 3 0 20 6 162 8 ,1 3 4 187 161 P R O D U C T IO N A N D E M P L O Y M E N T 130 131 130 127 64 131 131 130 126 69 130 131 129 124 127 116 4.1 4 0 .8 3.8 41 .4 4.1 4 0 .9 4 .8 4 0 .6 304 2 14 241 294 214 2 36 2 88 215 2 39 263 206 220 P e rso n a l In co m e (M il. $, A n n u a l R a t e ) ...........................J u ly 2 2 ,2 4 7 M a n u fa c tu rin g P a y r o l l s ...........................A ug. 337 F a rm C a s h R e c e i p t s ......................................J u ly 180 2 2 ,0 0 2 3 27 218 2 1 ,6 0 0 325 2 04 1 9 ,8 60 296 N o n fa rm E m p l o y m e n t t ................................ Aug. M a n u fa c tu r in g ........................................... Aug. ................................ Aug. N o n m a n u f a c tu rin g C o n s t r u c t i o n ........................................... Aug. F a rm E m p l o y m e n t ........................................... Aug. U n e m p lo y m e n t R a te (P e rc e n t of W ork F o r c e ) t ......................Aug. Avg. W e e k ly H rs. in Mfg. (H rs .) . . . Aug. 128 126 68 F IN A N C E A N D B A N K IN G D e b i t s * * ........................... . Aug. . Aug. Aug. F L O R ID A IN C O M E P R O D U C T IO N A N D E M P L O Y M E N T N o n fa rm E m p lo y m e n tt IN C O M E P e rso n a l In c o m e (M il. $, A n n u a l R a t e ) ........................... J u ly M a n u f a c tu r in g P a y r o l l s ........................... A u g. F a r m C a s h R e c e i p t s ......................................J u ly P R O D U C T IO N A N D E M P L O Y M E N T N o n fa rm E m p lo y m e n t t ...........................A u g . M a n u f a c tu r in g ........................................... A u g. N o n m a n u f a c t u r in g ......................................A u g . C o n s t r u c t i o n ........................................... A u g. F a r m E m p l o y m e n t ........................................... A u g . U n e m p lo y m e n t R a te (P e r c e n t of W o rk F o r c e ) t ......................A u g. A vg . W e e k ly H r s . in M fg. (H r s .) . . . A u g. 61 F IN A N C E A N D B A N K IN G M e m b e r B a n k L o a n s ......................................A u g. M e m b e r B a n k D e p o s i t s .................................A u g. B a n k D e b i t s * * ...................................................... A u g. L O U IS IA N A IN C O M E Loans* A ll M e m b e r B a n k s ......................................A u g. L a r g e B a n k s ................................................ A u g . D e p o sits * All M e m b e r B a n k s ......................................A ug. L a rg e B a n k s ................................................ A u g. B a n k D e b i t s * / * * ................................................ A u g. Bank G E O R G IA ........................... A ug. 130 169 170 169 18.? P e rso n a l In c o m e (M il. $, A n n u a l R a t e ) ........................... J u ly M a n u f a c tu r in g P a y r o l l s .................................A u g. F a r m C a s h R e c e i p t s ................................ J u ly P R O D U C T IO N A N D E M P L O Y M E N T N o n fa rm E m p l o y m e n t t .................................A u g. ........................................... Aug. M a n u f a c tu r in g N o n m a n u f a c tu r in g .................................A u g. C o n s t r u c t i o n ........................................... A u g. F a r m E m p lo y m e n t . ....................................... A u g. U n e m p lo y m e n t R a te (P e r c e n t of W ork F o r c e ) t ......................A ug. A vg. W e e k ly H rs. in M fg. (H r s .) . . . A ug. F IN A N C E A N D 134 122 137 132 50 122 121 B A N K IN G M e m b e r B a n k L o a n s * .................................A ug. M e m b e r B a n k D e p o s i t s * ........................... Aug. B a n k D e b i t s * / * * .................................................A u g. M I S S IS S IP P I IN C O M E P e r s o n a l In c o m e (M il. $, A n n u a l R a t e ) ........................... J u ly M a n u f a c tu r in g P a y r o l ls .................................A u g. F a r m C a s h R e c e i p t s ......................................J u ly P R O D U C T IO N A N D E M P L O Y M E N T N o n fa rm E m p l o y m e n t t ................................ A ug. ........................................... A u g. M a n u f a c tu r in g N o n m a n u f a c t u r in g ......................................A u g. C o n s t r u c t i o n ........................................... A u g . F a r m E m p l o y m e n t ........................................... A u g. U n e m p lo y m e n t R a te (P e r c e n t of W ork F o r c e ) t ......................A ug. Avg. W e e k ly H rs. in M fg. (H r s .) . . . A ug. F IN A N C E A N D 145 155 1 4 0 414 2 54 B A N K IN G M e m b e r B a n k L o a n s * ................................ A u g. M e m b e r B a n k D e p o s i t s * ........................... A ug. B a n k D e b i t s * / * * .................................................A u g . M O N TH LY R E V IE W L a t e s t M onth 1969 One M on th Ago Two M o n th s Ago One Year Ago L a t e s t M onth 1969 TEN N ESSEE N o n m a n u f a c t u r in g ................................ C o n s t r u c t i o n ...................................... F a r m E m p l o y m e n t ...................................... U n e m p lo y m e n t R a te (P e r c e n t of W ork F o r c e lt . . . . Avg. W e e k ly H o u rs in Mfg. (H rs .) . IN C O M E P e r s o n a l In co m e (M il. $, A n n u a l R a te ) . . . . M a n u f a c t u r in g P a y r o l ls ..................... F a r m C a s h R e c e i p t s ........................... . . . J u ly 1 1 ,1 06 . A u g. 239 J u ly 198 1 1 ,0 3 0 241 157 11 ,0 33 236 132 1 0 ,1 03 215 134 One M on th Ago Two M o n th s Ago One Y& r Ago . Aug. . A ug. . A ug. 141 154 58 141 155 58 141 157 48 13 9 147 61 . Aug. . A ug. 3 .6 4 0 .0 3 .7 4 0.1 3 .7 4 0 .0 3.6 4 0 .1 . Aug. . A ug. . A ug. 304 205 286 3 13 204 301 305 2 03 287 2 75 191 244 F IN A N C E A N D B A N K IN G P R O D U C T IO N A N D E M P L O Y M E N T N o n fa rm E m p l o y m e n t t ...................... M a n u fa c tu rin g ................................ * F o r S ix th D is t ric t a re a . . . A ug. . A u g. o n ly . O th e r to t a ls 146 157 145 155 fo r e n t ir e s ix 147 156 s ta te s . M e m b e r B a n k L o a n s * ........................... M e m b e r B a n k D e p o s i t s * ...................... B a n k D e b i t s * / * * ........................................... 143 153 * D a ily a v e ra g e b a s is . t P r e lim in a r y d a ta . S o u r c e s : P e r so n a l in c o m e e s t im a t e d by t h is B a n k ; n o n fa rm , m fg . a n d n o n m fg . e m p ., m fg . p a y ro lls a n d h o u rs , a n d u n e m p ., U .S . D e p t, of L a b o r a n d c o o p e r a tin g s ta te a g e n c ie s ; co tto n c o n s u m p t io n , U .S . B u r e a u of C e n s u s ; c o n s tr u c tio n c o n t r a c t s , F . W. D odge C o rp .; p e tro l, p ro d ., U .S . B u r e a u o f M in e s; in d u s tr ia l u s e o f e le c . p o w er, F e d . P o w e r C o m m .; fa rm c a s h , r e c e ip t s a n d fa rm e m p ., U .S .D .A . O th e r in d e x e s b a s e d on d a ta c o lle c te d b y t h is B a n k . A ll in d e x e s c a lc u la t e d b y t h is B a n k . D e b its to D e m a n d D e p o s it A c c o u n ts Insured Commercial Banks in the Sixth District (In T h o u s a n d s o f D o lla r s ) Percent Change Percent Chance Year A u g u st 1969 Fro m J u ly 19 69 A u g u st 1969 STAN DARD A u g u st 1 968 19 69 fro m 1 9 68 J u ly A ug. 1969 1968 A u g u st 1969 J u ly 1969 . 1 1 0 ,0 5 4 1 0 9 .1 8 3 ...................... 131',924 1 9 4 ,1 7 3 . 3 5 ,2 6 3 3 9 ,5 0 0 3 6 ,1 9 2 O c a l a ................................ 1 1 6,91 1 9 8 ,1 9 5 5 8 ,9 3 2 + 19 + 98 + 39 G a in e s v ille M E T R O P O L IT A N . L a k e la n d S T A T I S T IC A L A R E A S t M o n ro e C o u n ty B ir m in g h a m G ad sden . . . . ...................... H u n t s v ille M o b ile . . . . ..................... 1 ,8 6 2 ,7 3 2 1 ,9 7 1 ,4 9 7 1 ,7 9 7 ,3 2 5 - 6 + 4 + 11 6 4 ,1 6 9 6 9 ,2 5 0 6 3 ,5 2 3 - 7 + 1 + 4 1 + 1 9 2 ,8 9 4 2 1 3 ,0 9 0 1 9 4,25 1 -1 0 - 6 1 5 ,3 9 7 6 5 8 ,9 5 5 5 4 5 ,9 2 5 - 7 +13 + 12 3 7 4 ,5 0 6 3 3 6 ,4 2 3 - 8 + 2 + 12 1 2 9,69 6 1 1 7 ,6 5 9 - 4 + 6 + 15 M o n tg o m e ry . . . 3 4 4 ,7 9 4 T u s c a lo o s a . . . 124,711 6 F t. L a u d e r d a l e H o lly w o o d . . . 9 1 1 ,7 5 9 7 1 0 ,4 7 1 -1 8 + 28 +31 J a c k s o n v ille . . 1 ,7 7 3 ,1 7 3 2 ,0 0 8 ,7 6 0 1 ,6 2 6 ,7 4 8 -1 2 + + 17 . l,lll,1 2 4 r 9 M i a m i ........................... 3 ,1 0 6 ,5 7 5 3 ,5 5 3 ,5 6 0 2 ,8 2 7 ,4 2 9 -1 3 + 10 + 19 O r l a n d o ...................... 6 4 2 ,9 9 9 7 6 6 ,2 0 4 6 1 6 ,0 2 0 -1 6 + 4 + 10 P e n s a c o la 2 3 1 ,7 4 4 2 8 0,99 1 2 2 0 ,4 2 2 -1 8 + 5 + 10 + + 19 + 16 . . . . S t. A u g u st in e . . . 3 2 3 ,8 1 7 2 9 ,0 30 2 3 ,4 6 9 -1 8 + 1 + 19 4 4 4 .1 8 3 3 2 6 ,8 6 9 -1 7 + 13 + 21 1 5 1 ,5 4 5 1 8 5 ,8 0 8 1 3 0 ,5 4 7 -1 8 + 16 + 24 9 5 1 ,2 5 0 1 ,1 0 6 ,2 4 4 7 8 6 ,2 3 5 -1 4 + 21 + 19 . 6 5 ,3 1 4 7 9 ,3 0 9 6 2 ,6 6 6 -1 8 + 4 + 11 ........................... 9 8 ,7 8 0 1 0 3 ,3 6 4 8 6 ,0 4 6 - 4 + 15 B r u n s w i c k ...................... 5 2 ,3 6 5 5 4 ,4 0 5 4 7 ,4 8 1 - 4 +10 +12 + 5 Tam pa W in te r ........................... H aven A th e n s D a lto n . . ........................... 1 2 1 ,5 9 2 1 1 5,43 1 1 0 6 ,0 6 0 E l b e r t o n ........................... 1 6 ,7 97 1 9 ,7 3 5 1 4 ,5 27 G a in e s v ille 7 7 ,5 7 9 8 2 ,6 1 1 7 2 ,1 0 0 + 15 -1 5 + 16 G r i f f i n ................................ 3 7 .2 7 4 3 9 ,8 3 9 3 5 ,2 9 1 - 6 +8 - 6 +6 L aG ra n g e 2 5 ,6 5 0 2 4 ,0 5 8 2 3 ,5 1 5 + ........................... 2 3 ,3 1 7 2 9 ,0 6 4 2 5 ,7 2 3 R o m e ................................ 8 3 ,5 4 0 9 4 ,2 1 4 8 1 ,9 5 2 7 2 ,0 4 7 6 9 ,0 7 4 6 5 ,9 8 0 1 2 ,3 73 1 3 ,4 9 6 1 2 ,3 55 1 4 5 ,8 1 7 . . . . . 1 ,7 3 8 ,0 1 6 2 ,0 5 8 ,1 5 5 1,4 5 8,0 81 -1 6 + 19 + 20 5 4 2 ,5 6 4 7 0 6 ,4 0 4 4 3 7 ,3 4 2 -2 3 + 24 + 25 A lb a n y ..................... 1 0 6 ,1 1 7 1 1 2,79 1 9 4 ,5 6 0 - 6 + 12 + 10 V a ld o s ta ...................... A tla n ta ..................... 6 ,8 6 3 ,4 4 8 7 ,3 8 0 ,3 0 3 5 ,8 2 5 ,1 0 1 - 7 + 18 + 19 A b b e v ille ...................... A l e x a n d r i a ...................... N ew nan ..................... 7 + 9 3 0 0 ,9 1 1 3 0 5 ,0 6 9 3 0 1 ,9 1 8 - 1 - 0 - 1 6 2 ,0 9 3 1 7 7 ,7 8 0 C o lu m b u s 2 6 6 ,9 9 8 2 9 2 ,8 2 4 2 4 7 ,7 4 3 - 9 + 8 + 14 B u n k ie ........................... 7 ,7 2 0 8 ,1 0 7 6 ,2 0 4 5 + 24 ...................... 3 2 8 ,9 5 4 3 3 6 ,2 3 8 2 7 9 ,3 9 0 - 2 + 18 + 16 H a m m o n d ...................... 4 1 ,1 6 4 4 9 ,6 9 4 3 9 ,6 6 7 -1 7 + 4 . . . . 3 1 7 ,7 3 3 3 5 0,49 1 2 9 5 ,2 2 4 - 9 + 8 + 10 N ew I b e r i a ...................... 3 7 ,3 9 5 4 5 ,7 3 2 3 6 ,8 1 1 -1 8 6 7 1 ,6 0 6 6 5 9 ,0 0 8 61 2,89 1 + 2 + 10 + 15 2,42 5 1 8 1,02 9 1 4 1,781 -1 6 + 8 + 17 - + 7 + 2 M a co n Savannah B a to n R o u g e L a f a y e t te . . . . . . . 2 L a k e C h a r le s . . . 16 5,671 1 7 9,98 4 1 5 4,44 0 N ew O r le a n s . . . 2 ,5 0 0 ,8 7 9 2 ,8 1 6 ,5 7 1 2 ,4 4 0 ,4 8 7 -1 1 + B ilo x i—G u lfp o rt . . 109,330 14 8,70 5 1 2 3,33 8 -2 6 -1 1 + 11 ...................... 7 4 1 ,4 1 8 7 8 7 ,6 4 8 7 5 9 ,5 4 0 - - + 10 8 7 + 4 P la q u e m in e . 1 3 ,6 8 9 1 4 ,3 85 1 2 ,6 3 4 - 2 2 ,9 6 1 2 6 ,1 1 3 2 1 ,7 7 1 -12 H a ttie sb u rg 5 8 ,5 9 1 8 1 ,0 5 5 6 2 ,2 8 8 -28 C h a tta n o o g a . . . 6 6 2 7 7 0 ,5 5 5 8 2 2 ,4 1 7 6 3 7 ,0 6 7 - + 21 + 19 K n o x v ille . . . . 5 4 8 ,9 7 4 6 4 4 ,0 0 2 5 5 3 ,3 6 2 -1 5 - 1 + 10 N a s h v ille . . . . 2 ,1 4 9 ,3 7 1 2 ,3 7 4 ,2 3 9 1 ,8 8 9 ,2 9 2 - + 14 + 22 9 A n n isto n . . . . . . . . 5 5 4 ,4 3 7 4 0 ,2 4 8 8 5 ,8 4 1 9 5 ,8 1 9 7 7 ,1 2 4 N a t c h e z ........................... 4 4 ,3 5 3 5 0 ,7 9 3 4 1 ,3 3 1 -13 P a s c a g o u la — M o ss P o in t 7 5 ,4 7 3 1 0 0 ,1 2 8 6 7 ,5 3 4 -2 5 4 0 ,9 7 2 . . . V i c k s b u r g ..................... 4 5 ,1 1 4 4 4 ,6 5 5 Y a z o o C i t y ..................... 2 5 .2 7 4 2 7 ,3 8 8 B r is to l 8 6 ,5 5 3 1 0 0 ,9 5 6 r . . . . 8 9 ,3 2 5 ...................... 1 6 3 ,1 0 7 ........................... K in g s p o rt 3 2 ,3 3 8 + 18 + 14 + 9 + 3 + 15 + 18 +11 + 2 +10 +8 +8 + - 5 6 -10 +22 -10 +11 4 9 ,0 1 6 ...................... Jo h n s o n C ity O th e r C e n t e r s . ........................... M e rid ia n Ja ck so n . - T h i b o d a u x ...................... L a u re l . + 13 -20 - 9 - 3 -11 + 2 +10 + 4 + 9 +6 - 8 + 0 +10 - 9 +11 +20 A u g u s t a ...................... . . . . + 5 3 6 9 ,3 7 2 . 4 - + 10 + 15 . . P e te . -1 1 + 11 . 1 7 1,31 2 W . P a lm B e a c h 1 + 19 . 1 8 7 ,6 4 3 T a m p a —S t. + -3 2 . 2 0 3 ,1 2 7 8 9 2 ,2 2 9 1 1 8 ,7 6 1 . P e te r s b u r g S a r a s o ta . . A u g u st 1968 . S t. . . . T a l la h a s s e e Year to d a te 8 m os 1969 J u ly A u g. fro m 1 9 6 9 1 9 6 8 1 9 68 A u g u st 1969 F ro m + 7 +10 + 15 + 16 + 23 + 13 + 12 + 24 + 3 + 1 + 10 - 8 -2 2 + 2 8 3 ,8 6 0 -1 4 + 3 + 14 1 0 7 ,6 2 8 8 1 ,4 2 6 -1 7 + 10 + 15 1 9 8 ,5 5 2 1 5 9,26 1 -1 8 + 2 + 12 7 3 ,0 6 7 7 7 ,0 2 6 7 5 ,0 1 4 - 5 - ...................... 7 8 ,5 9 9 8 2 ,7 2 0 r 6 9 ,3 6 6 - 5 + 13 S e lm a ..................... 4 7 ,2 1 9 4 9 ,3 3 9 4 6 ,5 2 9 - 4 + 1 + 7 B a rto w ..................... 3 2 ,2 7 5 4 0 ,7 8 3 3 1 ,0 4 2 -2 1 + 4 + 9 4 ,7 0 3 ,4 6 8 5 ,0 1 9 ,8 1 4 r 4 ,5 0 5 ,1 0 7 -6 8 0 ,4 7 1 1 0 9 ,7 9 3 7 5 ,7 4 7 -2 7 + 6 + 16 F l o r i d a ! ........................... 1 1 ,7 1 6 ,4 0 7 1 3 ,6 0 1 ,1 1 0 r 1 0 ,3 5 5 ,6 9 3 -1 4 +13 + 18 1 9 6,19 7 2 3 1 ,4 5 6 2 2 6 ,6 3 0 -1 5 -1 3 - 1 G e o rg ia * 1 0 ,9 9 8 ,3 5 7 9 ,0 8 0 ,0 9 4 - + 13 + 15 + 6 4 ,8 7 2 ,5 6 2 4 ,2 1 9 ,1 2 0 D o th a n B ra d e n to n B re v a rd . . . . C o u n ty . . 3 D a y to n a B e a c h . . 9 6 ,5 0 7 1 1 0 ,4 5 6 9 0 ,0 7 5 -1 3 + F t. M y e rs — N. F t. M y e rs . . 1 1 1 ,8 7 3 1 3 1 ,9 6 4 8 5 ,5 5 0 -1 5 + 31 Includes only banks in the Sixth District portion of the state. O CTO BER 1969 7 + 7 + 17 + 30 tPartially estimated. S IX T H D I S T R IC T A lab a m a^ T o ta l ..................... ..................... 1 0 ,2 9 4 ,1 0 6 L o u i s ia n a ! * . . . . 4 ,4 2 8 ,9 2 1 M i s s is s ip p i! * . . . . 1 ,6 3 1 ,5 1 6 1 ,8 4 7 ,8 3 2 1 ,6 3 3 ,2 1 4 T e n n e sse e t* . . . . 5 ,1 4 6 ,3 1 8 5 ,7 8 7 ,5 8 9 4 ,5 8 4 ,8 4 3 6 +4 +9 - 9 +5 +7 -12 - 0 +11 - 11 +12 +20 ^Estimated. 131 D is t r i c t B u s i n e s s C o n d i t i o n s I I — Billions o f D ollars Annual R ate — S e a s. Adj. i P e rs o n a l In c o m e _ 1 9 5 7 -5 9 :1 0 0 S e a s. Adj N o n f a r m E m p lo y m e n t 330 U n e m p lo y m e n t R a te A v e r a g e W e e k ly H o u r s 247- 229 M fg. P a y r o lls M e m b er B a n k D e p o s its II i i i i II i i II I II I II I 1968 1969 fcSe a s. adj. figure; not an index. The D is t r ic t econom y is i l i I Ml i l I i I I I I I i I I I l I i i i I i I i i I ii I 1967 1968 1969 1966 t N e w series. r e s p o n d in g to a n t i-in fla tio n a r y p o lic ie s . L o a n s at m e m b e r banks began to d e c lin e in the firs t w e e k s o f S e p te m b e r a s the a ttritio n o f la rg e c e r tif ic a te s o f d e p o s it a c c e le r a t e d . C o n s u m e r c re d it e x te n d e d its s la c k e n in g tre n d , a n d n et s a v in g s f lo w s slo w e d fu rth e r in A u g u s t . F a rm p r ic e s m o v e d d o w n w a rd , b u t w ere a b o v e p re -J u ly le v e ls. E m p lo y m e n t e x p a n d e d o n ly s lig h tly . B u s i n e s s lo a n s a t la rge c o m m e r c ia l b a n k s d e c lin e d d u r in g the f ir s t h a lf o f S e p te m b e r in m a rk e d c o n tr a s t to e x p e c te d s e a s o n a l g a in s . These large banks have continued selling off their U. S. Gov ernment securities of longer maturities. The smaller banks are also reporting declines in loans, compared with increases in the month of August. Country banks are showing small increases in passbook savings deposits, whereas reserve city banks report continued declines in time deposits, as the run-off of large certificates of deposit more than doubled the rate of the previous month. The f a llin g - o f f in new co n su m e r t h a t b e g a n in Ju ly c o n tin u e d lo a n v o lu m e in A u g u s t , w ith a ll Accounting for much of the weakness in new volume were sharp reductions in other consumer goods loans and repair and modernization loans. Amounts repaid slipped slightly in August but remained above the year-ago level. Both bank credit and check credit increased slightly from July. c a t e g o r ie s r e g is te r in g d e c lin e s . T o ta l c o n s tr u c t io n c o n tr a c t v o lu m e c o n tin u e d Two large electrical power sys tems and one large apartment project boosted the total substantially. Apartment building in major metropolitan areas is still vigorous, although s t r o n g in A u g u s t . NOTE: financing continues to become increasingly dif ficult and expensive to arrange. Further slowing in net savings at nonbank thrift institutions in the District was apparent in August. P r ic e s r e c e iv e d by f a r m e r s d e c lin e d D is t r ic t e m p lo y m e n t re g is te re d a d im in u t iv e in c re a s e in A u g u st, m o s tly in the m a n u f a c t u r in g Nevertheless, preliminary reports indi cate that Camille drastically reduced employment in several major industries in the Biloxi-Gulfport area. Recent layoffs in the aero-space industry have also adversely affected the total number employed in the Coastal counties of Mississippi. However, manpower needs for the massive re building programs planned may help offset these losses in the future. The oil-drilling industry in Louisiana also suffered substantially from Ca mille. se ctor. D ata on w h ic h sta te m e n ts are b a se d h ave been ad ju ste d w h e n e v e r p o s sib le to e lim in a te s e a s o n a l 132 in A u g u s t Lower prices for cotton and broilers are chiefly responsible for the drop, although prices also declined for eggs, vege tables, and most livestock in response to generally heavier supplies. Peanut farmers in the area are harvesting a good crop, but tung nut orchards and citrus groves along the western Gulf Coast suffered heavy damage from Hurricane Camille. a fte r in c r e a s in g s h a r p ly in July. in flu e n c e s. M O N TH LY R E V IE W
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