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MONTHLY REVIEW B U S I N E S S C O N D I T I O N S I N T H E S I X T H F E D E R A L R E S E R V E D D is tr ic t Industrial activity in the Sixth District S u m m a r y showed substantial gains in September and ^ wholesale distribution increased more than usual for the month, but department store sales recorded a smaller - than - seasonal advance. Construction contracts awarded in September increased 4 1 .6 per cent, and residen tial awards rose 55 .8 per cent. Textile operations advanced further after increasing 15.9 per cent in August. Pig iron production increased 13.1 per cent, steel mill activity rose to 9 0 .0 per cent of estimated capacity, and coal output also increased. The September increases over August in construction activity, textile operations, and pig iron output in this dis trict were larger than for the country as a whole, but the changes in department store sales, coal production and in bank debits to individual accounts were less favorable. In comparison with September last year, the district changes in department store sales, residential awards, cotton con sumption and coal output lead those for the country but total construction contracts, pig iron output and bank debits compare less favorably. T rade In Septem ber departm ent store sa les in the Sixth D istrict increased less than se a so n a lly , but w h o le sa le trade rose b y about tw ice the u su al am ount. In ven tories, both retail and w h o lesa le, increased. B u sin ess fa ilu res d e clin ed from A u gu st and w ere low er than a year ago. ► D epartm en t store sales, on a d a ily average b asis, increased 16.9 per cent in Septem ber, w hich had o n ly 2 5 bu sin ess days, over the lo n g er m onth o f A u gu st, but the in d ex, after season a l adjustm ent, d eclin ed 3 .0 per cent. T h e Septem ber in d ex w as, how ever, 11 .4 per cent h igh er than in Septem ber last year and w as the h igh est fo r S eptem ber in the tw enty years in clu d ed in the series. Septem ber sa les reported to the U nited States D epartm ent o f Com m erce b y 155 w h o lesa le firm s in the D istrict increased 1 5 .9 per cent over A ugust, fo llo w in g an A ugust gain o f 17.9 per cent over Ju ly, and w ere 15.3 per cent greater than a year ea rlier. Cum ulated CONDITION O F 22 MEMBER BANES IN SELECTED CITIES (In T h o u sa n d s oi D o llars) L o a n s a n d I n v e s tm e n ts — T o t a l............... L o a n s — T o t a l........................................................... C o m m e r c ia l, i n d u s tr i a l a n d a g r i c u l t u r a l l o a n s ...................................... O p e n m a r k e t p a p e r ...................................... L o a n s to b r o k e r s a n d d e a l e r s in s e c u r i t i e s ................................................... O th e r lo a n s fo r p u r c h a s i n g a n d c a r r y i n g s e c u r i t i e s ....................... R e a l e s t a t e l o a n s ............................................ L o a n s to b a n k s ................................................. O th e r l o a n s ........................................................ In v e s tm e n ts — T o t a l............................................ U . S . d ir e c t o b l i g a t i o n s ............................ O b lig a tio n s g u a r a n t e e d b y U . S — O th e r s e c u r i t i e s .............................................. R e s e r v e w ith F . R. B a n k ............................... C a s h in v a u l t .......................................................... B a l a n c e s w ith d o m e s tic b a n k s ............... D e m a n d d e p o s i t s - a d j u s t e d ....................... T im e d e p o s i t s ........................................................ U . S . G o v e r n m e n t d e p o s i t s ......................... D e p o s its of d o m e s tic b a n k s ....................... B o r r o w in g s ............................................................... 1 6 4 ,3 0 9 3 ,4 2 1 4 ,2 6 9 1 0 ,8 6 6 3 1 ,5 3 7 1 ,0 4 0 8 7 ,2 4 7 3 0 3 ,6 5 5 14 3,1 6 1 6 3 ,3 8 2 9 7 ,1 1 2 1 2 2 ,3 3 0 1 3 ,0 9 1 2 0 6 ,5 0 2 3 8 5 ,9 4 2 . 1 8 8 ,1 9 5 4 0 ,2 6 1 2 7 5 ,6 1 2 I C T October 31, 1939 F E D E R A L R E SE R V E B A N K O F A T L A N T A O c t. 18, 1939 $ 6 0 6 ,3 4 4 3 0 2 ,6 8 9 I S T R C h a n g e F ro m : S e p t. 1 3 ,1 9 3 9 O c t.1 9 ,1 9 3 8 + 2 2 ,0 3 5 + 2 4 ,3 7 3 + 5 ,3 2 7 + 1 5 ,5 6 9 + 1 1 ,1 9 0 + 451 + + 391 911 — 763 — 1 ,6 1 7 — 379 + 392 — 9 + 4 ,6 8 7 + 8 ,8 0 4 + 782 + 2 ,6 3 3 + 5 ,3 8 9 — 1 0 ,8 1 3 — 385 + 2 ,4 2 1 + 1 ,5 9 5 — 27 + 382 + 1 2 ,8 5 5 — 3 ,6 6 4 + 3 ,0 8 2 — 1 ,0 2 5 + 7 ,2 4 9 + 1 6 ,7 0 8 — 1 5 ,7 0 0 + 2 1 ,5 1 6 + 1 0 ,8 9 2 + 2 0 ,9 8 5 + 1 ,3 8 6 + 6 4 ,1 9 7 + 4 5 ,1 7 7 + 2 ,5 6 5 + 5 ,7 6 4 + 5 3 ,4 4 1 totals fo r the January-Septem ber p eriod show increases o f 8 .9 per cent in departm ent store sales and o f 8.5 per cent in w h o lesa le d istribution over that part o f 1938. ► Septem ber in ven tories at departm ent stores increased 15.5 per cent over A ugust, and w h o lesa le stocks rose b y 14.8 per cent, and they were 6.1 per cent and 15.2 per cent, respec tiv ely , larger than a year ago. Banking In recent w eeks both loan s and investm ents at w eek ly reporting m em ber banks in lead in g cities o f the Sixth D istrict h ave increased. Interbank de p osits have risen su b sta n tia lly since Ju ly. ►T otal loan s at these 22 banks have increased about 20 .7 m illio n s o f d ollars betw een m id-A ugust, w hen they w ere the sm a llest in eleven m onths, and October 18, m ore than h a lf o f the gain b ein g in the last two w eeks o f that period. S in ce A ugust 16 loan s fo r com m ercial, industrial and agricu ltu ral purposes have risen n early 12 m illio n s, and “A ll O ther” loan s have increased about 10 m illio n s, w h ile secu rity loan s and loan s to banks have d eclin ed . H old in gs o f investm ent securities on O ctober 18 w ere the largest reported for any W ednesday since M arch 24, 1937. Investm ents in direct o b li gation s o f the U nited States declined in the first h a lf o f the year, but h o ld in g s o f securities carrying the guarantee of the U nited States G overnm ent have increased this year by m ore than h a lf, and h o ld in g s o f Other S ecurities have also increased in recent m onths. Com pared w ith the corresp on d in g W ednesday last year total loans on O ctober 18 were larger b y about 5.3 m illio n s, and investm ents w ere 16.7 m illio n s greater. ► D em and cteposits-adjusted reached another record high lev el on Septem ber 27, and on October 18 w ere 4 5 .2 m il lio n s greater than th ey w ere a year earlier. Interbank de posits have increased sin ce J u ly and have recently been w ell above the average fo r the first h a lf o f the year, and on O ctober 18 w ere 5 3 .4 m illio n s greater than on the corre sp on d in g W ednesday a year ago. ► A t the Federal R eserve Bank o f A tlanta discounts for m em ber banks, and in d u strial advances to business firms, h ave declin ed in recent w eeks. H old in gs o f U n ited States securities are also som ew hat low er, partly because o f a re duction in the bank’s p articip ation in the S ystem ’s in vest m ent account at the b eg in n in g o f the fourth quarter. F ederal CONDITION O F FEDERAL RESERVE BANK O F ATLANTA (In T h o u sa n d s of D ollars) O c t. 18, 1 939 145 19 645 B ills d i s c o u n t e d ...........................................................$ B ills b o u g h t ..................................................................... I n d u s tr ia l a d v a n c e s ................................................ U n ite d S ta t e s s e c u r i tie s , d ir e c t a n d g u a r a n t e e d .................................................................. T o ta l b ills a n d s e c u r i t i e s ................................. F . R. n o te c i r c u l a t i o n .............................................. M e m b e r b a n k r e s e r v e d e p o s i t s ....................... U . S . G o v e r n m e n t g e n e r a l d e p o s i t s .......... F o r e ig n b a n k d e p o s i t s ........................................... O th e r d e p o s i t s ............................................................. T o ta l d e p o s i t s ........................................................... T o ta l r e s e r v e s ................................................................ C o m m itm e n ts to m a k e in d u s tr i a l a d v a n c e s ................................................ ...................... 1 0 9 ,2 4 5 1 1 0,0 5 5 1 5 9,4 8 0 1 9 6 ,8 2 2 2 4 ,5 1 0 1 4 ,6 1 6 6 ,1 8 5 2 4 2 ,1 3 3 2 9 5 ,7 4 3 79 C h a n g e F ro m -: S e p t. 1 3 ,1 9 3 9 O c t.1 9 ,1 9 3 8 — 20 — 515 — ’ ’i07 + ” 467 — 7 ,3 2 2 _ 7 ,4 4 7 + 5 ,1 3 7 — 1 3 ,8 5 7 — 2 1 ,0 4 5 — 1 ,1 3 1 + 661 — 3 5 ,3 7 2 — 2 3 ,6 5 3 + 4 ,7 2 4 + 4 ,6 7 7 + 1 2 ,3 7 5 + 3 1 ,8 5 1 — 1 3 ,2 4 3 + 7 ,7 1 1 + 318 + 2 6 ,6 3 7 + 3 4 ,3 0 8 — — 60 96 2 B u s in e s s C o n d it io n s in t h e D EBITS T O IN D IV ID U A L A C C O U N T S (I n T h o u s a n d s o i D o lla r s ) ALABAMA— B ir m in g h a m ............. D o t h a n .......................... M o b ile ............................ M o n tg o m e r y ............. $ S e p t. 19 39 8 6 ,8 0 3 3 ,2 1 2 3 8 ,5 9 8 2 2 ,7 8 4 $ A ug. 1 9 39 7 9 ,8 0 3 2 ,5 7 8 3 5 ,6 7 8 2 2 ,0 1 5 $ S e p t. 1 9 38 7 5 ,6 1 2 3 ,7 0 4 3 8 ,7 8 6 2 2 ,3 4 0 P er C ent C h an g e S e p t. 1 9 39 F ro m : A u g . 1 9 39 S e p t .1 9 38 + 8.8 + 1 4 .8 + 2 4 .6 — 1 3 .3 + 8 .2 — 0 .5 + 3 .5 + 2 .0 FLO R ID A — J a c k s o n v il le ............. . M ia m i............................ P e n s a c o l a .................. T a m p a ............................ 6 9 ,8 9 8 3 8 ,7 5 9 8 ,9 5 3 2 6 ,6 1 9 6 7 ,6 4 8 3 8 ,9 5 3 8 ,3 4 2 2 4 ,0 7 5 6 0 ,9 7 4 3 1 ,3 6 8 7 ,5 9 9 2 2 ,9 1 1 + 3 .3 — 0 .5 + 7 .3 + 10.6 + 1 4 .6 + 2 3 .6 + 1 7 .8 + 1 6 .2 G E O R G IA — A l b a n y .......................... A t l a n t a .......................... A u g u s t a ....................... B r u n s w ic k .................. C o lu m b u s .................. E l b e r to n ....................... M a c o n ............................ N e w n a n ....................... S a v a n n a h .................. V a l d o s t a ..................... 4 ,6 9 4 1 9 5 ,3 2 6 2 0 ,2 5 7 2 ,2 5 6 1 5 ,2 9 4 1 ,1 5 4 1 8 ,1 1 5 2 ,1 9 0 3 0 ,4 0 1 4 ,5 0 8 3 ,9 5 4 1 9 4 ,9 5 4 1 7 ,2 4 8 2 ,2 3 5 1 4 ,2 6 2 928 1 3 ,5 5 1 1 ,7 9 1 2 7 ,1 1 2 9 ,2 3 7 4 ,9 5 4 1 8 2 ,7 8 3 1 5 ,7 5 1 2 ,2 3 7 1 2 ,9 1 5 1,0 5 1 1 4 ,1 1 6 1 ,6 4 3 2 8 ,8 5 9 4 ,6 7 0 + 1 8 .7 + 0.2 + 1 7 .4 + 0 .9 + 7 .2 + 2 4 .4 + 3 3 .7 + 2 2 .3 + 12.1 — 5 1 .2 — 5 .2 + 6 .9 + 2 8 .6 + 0.8 + 1 8 .4 + 9 .8 + 2 8 .3 + 3 3 .3 + 5 .3 — 3 .5 LO U ISIA N A — N e w O r l e a n s .......... 2 4 2 ,4 0 7 2 0 0 ,4 0 0 2 2 7 ,0 5 6 + M IS S IS S IP P I— H a t t i e s b u r g ............... J a c k s o n .......................... M e r id i a n ..................... V ic k s b u r g .................. 5 ,6 6 1 2 8 ,7 4 9 1 2 ,6 9 6 7 ,9 9 5 4 ,4 0 0 2 5 ,1 2 5 1 0 ,5 7 0 6 ,3 2 2 4 ,9 0 4 3 4 ,6 9 0 1 0 ,6 5 7 7 ,2 9 8 + 2 8 .7 + 1 4 .4 + 20.1 + 2 6 .5 + 1 5 .4 — 1 7.1 + 1 9 .1 + 9 .6 4 3 ,7 7 0 3 0 ,7 0 8 8 9 ,2 1 4 5 4 ,0 4 1 3 0 ,7 6 4 8 3 ,3 9 7 4 0 ,8 2 1 2 7 ,7 1 2 8 0 ,7 0 9 — 1 9 .0 — 0.2 + 7 .0 + 7 .2 + 10.8 + 1 0 .5 1 ,0 4 8 ,7 6 5 9 7 9 ,3 8 3 9 6 6 ,1 2 0 + 7 .1 + U NITED STA TES— 141 C i t i e s ..................... ..$ 3 3 ,6 6 4 ,1 6 5 $ 3 0 ,6 1 3 ,1 8 4 $ 2 9 ,5 2 5 ,2 7 6 + 10.0 TE 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 ..................... SIXTH D IST R IC T 2 6 C i t i e s ....................... . . 21.0 + 6.8 8.6 + 1 4 .0 Reserve note circulation of this bank’s issue has increased since midyear and on October 18 was the largest since early in January 1938. Member banks in the District have reduced their reserve deposits since early August by about 18 mil lions of dollars. Deposits of the United States Treasurer have also been reduced to the lowest level, on October 18, in a year and a half. ► Excess reserves of all member banks in the District, esti mated on the basis of latest available data, amounted on October 18 to about 64.2 millions of dollars, or 48.4 per cent of legal requirements. In September estimated excess reserves averaged about 68 millions, which was also 48.4 per cent of legal requirements. ► Check transactions in September at 26 reporting cities in the District were 7 .1 per cent larger than in August and 8.6 per cent greater than a year ago. At 14 1 centers throughout the country the increase over August was 10.0 per cent and the gain over September last year was 14.0 per cent. Agriculture Farm income in the six states of the District increased substantially from Ju ly to August. The large increase in Georgia was partly due to the move ment of tobacco, and Louisiana, Mississippi and Alabama also had large gains as cotton began to move. August receipts from crops and livestock in the six states combined, although up 47.0 per cent from July, were 16.0 per cent less than in August 1938. Government benefit payments increased only slightly in August but were half again as large as they were a year earlier, and the decline in total receipts, com pared with August last year, was 1 1 .3 per cent. ► Unfavorable weather conditions resulted in a reduction of 239,000 bales, or 4.9 per cent, in the October estimates of cotton in the six states of this District, compared with those a month earlier. The crop in Louisiana was further advanced S ix t h F ed er a l R eser v e D is t r ic t than in other states, but in Florida there was too much rain, and in some other parts of the District the long periods of dry weather were unfavorable for late fruiting and weevil damage was apparently heavier than had been anticipated. ► October estimates indicate some reduction from earlier ex pectations in the production of corn, peanuts, tobacco, sweet potatoes, hay, sugar cane, apples, pears and grapes, but esti mates for pecans and potatoes increased. ► The first estimate of citrus fruit production in Florida from the 1939 bloom indicates a total of 35.9 million boxes of oranges, 2 million larger than last year, and a total of 17 .1 million boxes of grapefruit, a decrease of 6.5 million boxes from the 1938-1939 season. Industry In September building and construction activity and pig iron production reversed the August de clines, textile operations increased further, and there were seasonal gains in coal output and cotton seed oil m ill opera tions. ► The total value of construction contracts awarded in the District increased 41.6 per cent in September after declining about one-third between May and August. The September total had been exceeded only twice in more than two years. Contracts for residential construction, which accounted for more than half the month’s total, were only slightly less than in May and with the exception of that month, were the largest since April 1926. The September residential total includes several large housing projects. Value of building permits issued at twenty reporting cities increased 8.0 per cent in September and was more than double the total for September last year. The September total was slightly less than that for Ju ly, but was larger than for any other month since December 1928. In the first three quarters of the year building permits have been 59.8 per cent larger than in that part of 1938, residential- contracts increased 64.3 per cent, and other awards were up 14.4 per cent. ► Textile mill activity, reflected in the rate of cotton con sumption, increased 10.4 per cent further in September, fol lowing a 15.9 per cent gain in August, and was at the high est level in more than two years. Cotton seed oil mill opera tions recorded a substantial gain, with the movement of the new cotton crop, but were slightly below September last year. ► Steel mill activity in the Birmingham area has risen fur ther in recent weeks and at the middle of October was at 90.0 per cent of capacity. This represents a gain of 15.0 points in two months, and compares with the low for the year, at 43.5 per cent, at the beginning of May. A year ago the rate was 49.0 per cent. The rate of pig iron output in September rose 13 .1 per cent in Alabama, and 12.6 per cent in the United States, over August, and Alabama production was 12 .3 per cent greater than a year ago while for the country as a whole the increase over September 1938 was 71.9 per cent. A ll of the eighteen Alabama blast furnaces were in active operation the last week of September and the first half of October. ► Coal production in Alabama and Tennessee increased fur ther in September to the highest level since February, and was 23.0 per cent greater than a year ago. ► Electric power production in the six states of this district increased 1 . 1 per cent in August and was 8.6 per cent greater than a year ago. The August rate was less than 1.0 per cent below the record high reported for June. B u s in e s s C o n d it io n s in t h e S ix t h SIX T H D IST R IC T B U SIN ESS S TA TISTIC S SALES --------------------------:— — J a n .S e p t. S e p t. 1 9 39 C o m p a r e d w ith : RETAIL TRA D E A u g .1 9 3 9 S e p t.1 9 3 8 A t l a n t a ................................... + 9 .2 + 9 .4 B ir m in g h a m ....................... + 7 .2 + 8 .7 M o n tg o m e r y ..................... + 3 9 .6 + 6 .1 N a s h v ill e .............................. + 1 3 .8 + 4 .2 N e w O r l e a n s ..................... + 1 .2 + 1 4 .0 + 9 .9 O t h e r s .................................... + 1 9 .7 D ISTR IC T ( 4 6 F ir m s ). + 1 0 .8 + 9 .7 W H O LESA LE TRADE G r o c e r i e s ............................ + 1 9 .4 D ry G o o d s .......................... + 2 6 .2 H a r d w a r e ............................ + 1 7 .6 E le c tric a l G o o d s .............— 1 .8 D r u g s ....................................... + 9 .7 S h o e s ....................................... + 8 .5 T O T A L ............................... + 1 5 .9 STOCKS CO LLEC- -------- In c l. C o m p a re d w ith Y ear A go + 1 1 .6 + 1 0 .9 + 9 .5 + 8 .2 + 5 .7 + 8 .5 + 8 .9 S e p t. 1 9 3 9 C o m p a red w ith S e p t.1 9 3 8 + 1 4 .7 + 6 .5 — 1 7 .9 — 2 .5 + 8 .6 + 0 .8 + 6 .1 + 0 .1 + 7 .9 + 1 7 .9 + 2 7 .2 + 9 .8 — 8 .0 + 8 .5 + 2 2 .7 + 8 .6 + 2 1 .6 + 3 6 .7 + 7 .1 ... + 1 5 .2 + 2 0 .8 + 1 1 .4 + 2 7 .1 + 3 6 .2 + 5 .7 — 1 5 .0 + 1 5 .3 N RT AIO TIO — S e p t. 1939 2 5 .9 2 9 .2 2 5 .0 2 9 .1 3 0 .2 2 8 .0 7 9 .9 3 6 .0 4 4 .2 5 6 .4 6 0 .0 2 0 .2 5 4 .8 ( 0 0 0 O M IT T E D ) C O M M E R C IA L FA IL U R E S— D IS T R IC T ......................................... N u m b e r .............................................. lia b ilit ie s ................................. S e p t. 1 9 39 33 328 C O N T R A C T S A W A RD ED — D IS T R IC T ...................................... $ 2 7 ,9 8 2 1 5 ,2 5 5 R e s id e n tia l.................................... ............. 1 2 ,7 2 7 A ll O t h e r s ...................................... ........... 6 ,2 6 2 A l a b a m a ......................................... ............. 7 ,6 4 6 F l o r i d a .............................................. ............. 6 ,2 5 6 G e o r g i a ............................................ ............. 6 ,4 7 6 L o u i s i a n a ...................................... ........... 1 ,2 9 0 M is s is s ip p i.................................... T e n n e s s e e ...................................... ............. 3 ,0 4 7 B U ILD IN G PERM ITS— 2 0 C IT IE S ........................................... $ 1 0 ,4 5 0 A t l a n t a ................................................. 2 ,5 6 3 B ir m in g h a m .................................... 3 ,2 1 5 J a c k s o n v il le .................................... 676 151 N a s h v ill e ........................................... N e w O r l e a n s ................................. 488 15 O th e r C i t i e s ............................... 3 ,3 5 7 P IG IR O N P R O D U C T IO N — Tons A l a b a m a ............................................ C O A L P R O D U C T IO N — T o n s A l a b a m a ........................................... T e n n e s s e e ......................................... C O T T O N C O N S U M P T IO N — B a le s A l a b a m a ........................................... G e o r g i a .............................................. T e n n e s s e e ......................................... TO TA L THREE S T A T E S .. . 220 1 ,1 0 5 506 S e p t. 1 9 38 54 748 I a n .- S e p t ., In c l. 1 938 1 9 39 524 495 $ 5 ,9 9 5 $ 5 ,7 7 3 $ 1 9 ,7 5 9 $ 2 7 ,5 4 8 9 ,7 9 0 6 ,0 9 5 9 ,9 6 9 2 1 ,4 5 3 2 ,6 6 1 4 ,4 8 8 8 ,6 9 4 6 ,8 4 3 2 ,7 1 4 4 ,5 7 0 2 ,8 9 9 8 ,9 1 3 3 ,3 1 1 6 ,9 3 7 3 ,6 0 7 3 ,3 8 2 $ 2 1 8 ,2 7 0 $ 1 6 5 ,2 8 9 9 5 ,9 7 9 5 8 ,4 0 9 1 2 2 ,2 9 1 1 0 6 ,8 8 0 3 3 ,0 6 0 2 1 ,1 4 5 6 8 ,0 6 4 5 1 ,5 6 5 4 6 ,3 5 3 3 2 ,1 9 2 4 7 ,2 7 1 3 7 ,6 0 3 2 5 ,8 8 9 2 0 ,9 3 9 3 7 ,7 5 0 3 4 ,6 3 9 $ $ A ug. 1939 57 746 9 ,6 7 4 $ 436 300 633 418 579 7 ,3 0 8 4 ,9 8 4 342 165 721 313 346 3 ,0 9 7 $ 6 9 ,8 6 0 6 ,4 7 5 5 ,9 9 7 5 ,7 8 5 3 ,2 5 4 4 ,9 8 5 4 3 ,3 6 4 $ 4 3 ,7 2 1 2 ,7 9 4 1 ,9 8 4 7 ,4 2 3 2 ,4 5 9 3 ,6 3 1 2 5 ,4 3 0 201 196 1 ,8 6 9 1 ,2 5 4 l ,0 3 6 r 471r 870 440 8 ,0 3 8 3 ,5 6 0 7 ,4 6 7 3 ,0 8 5 ( 0 0 0 O M IT TED ) S e p t. A ug. 1939 19 39 F ed er a l R eser v e IS IN D EX ES xs n o te d ) RETAIL SALES*— U n a d ju s te d s p t. 1 9 39 A u g . 1 9 39 D ISTR IC T (2 7 F i r m s ) ............................................ 1 3 3 .4 1 1 4.1 A t l a n t a .............................................................................................. . 2 6 5 .4 2 2 9 .8 B ir m in g h a m .................................................................. 1 1 4 .2 1 0 0 .7 N a s h v ill e ....................................................................... , 1 1 6 .3 9 4 .6 N e w O r l e a n s ................................................................ 1 0 7 .7 9 8 .5 RETAIL SALES*— A d ju s te d D ISTR IC T (2 7 F i r m s ) ....................... A t l a n t a ........................................................ B ir m in g h a m .............................................. N a s h v ill e ................................................... N e w O r l e a n s ......................................... . A u g ,. 1 -S e p t. 30 1 9 39 1 9 38 .. 1 4 1 .9 1 1 7 .1 D IST R IC T (2 4 F i r m s ) ....................... A t l a n t a ........................................................ B ir m in g h a m ........................................... . N a s h v ill e ................................................... N e w O r l e a n s .......................................... RETAIL S T O C K S — A d ju s te d D ISTR IC T (2 4 F i r m s ) ...................................................................... , 7 5 .8 A t l a n t a ..............................................................................................1 3 2.1 B ir m in g h a m ................................. ................................ 7 6 .9 N a s h v ill e ....................................................................... N e w O r l e a n s ................................................................ W H O LESA LE SALES— T o ta l. G r o c e r ie s ......................................... D ry G o o d s ...................................... H a r d w a r e ...................................... D r u g s ................................................. .. 86.2 1 2 4.0 C O N T R A C T S A W A R D ED — D IS T R IC T ............................ . . 7 9 .7 R e s id e n tia l..................................................................... All O t h e r s ...................................................................................... A l a b a m a ...................................................................................... ’ . 136^9 1 3 6.9 F l o r i d a ............................................................................ G e o r g i a ............................................................................ L o u i s i a n a ....................................................................... . .1 0 3 .0 M is s is s ip p i..................................................................... T e n n e s s e e ..................................................................... B U ILD IN G PERM ITS— 20 C i t i e s ....................... . . 9 2 .9 A t l a n t a ..............................................................................................1 6 5 ., B ir m in g h a m ................................................................................. 216^9 J a c k s o n v il le .................................................................................. 8 2 .2 N a s h v ill e ......................................................................................... 2 3 .8 N ew O r l e a n s ................................................................................ 37.9 3 7 .9 15 O th e r C i t i e s ............................ ............................................... 6 1 .3 56 84 79 EL EC TR IC P O W E R P R O D U C T IO N * *In c lu d e s G o v e rn m e n t p a y m e n ts , r = r e v is e d . 4 4 .3 22.1 11.2 1 8 7 .7 7 5 .5 1 7 1 .0 1 5 4 .2 1 3 4 .7 1 6 1 .3 1 6 1 .5 FERTILIZER TA G SALES— T o n s TO TA L SIX S T A T E S ............. 61 24 * G e o r g i a , A la b a m a , L o u is ia n a a n d M is s is s ip p i. EM PLO YM EN T (A v . fo r 1 9 3 2 = 1 0 0 ) A l a b a m a .......................................................... F l o r i d a ............................................................... G e o r g i a ......................................... m . _______ 1 ,9 8 7 ,9 4 2 6 5 5 ,3 5 9 9 7 1 ,6 2 5 1 ,0 5 2 ,0 4 6 4 6 ,9 9 1 1 ,0 0 6 ,3 9 9 5 ,7 2 0 ,3 6 2 3 ,2 9 3 ,3 9 9 2 ,4 2 6 ,9 6 3 68.6 14 1.7 3 5 9 .8 6 1 .0 2 0 4 .2 8 3 .2 1 7 8 .9 1 4 7 .8 1 3 4 .8 1 6 5 .9 1 6 6 .4 329 2 ,4 8 0 ,5 3 0 7 2 8 ,9 1 4 1 ,1 0 0 ,0 9 9 1 ,1 8 9 ,2 6 6 4 0 ,8 5 7 1 ,2 3 5 ,2 9 1 6 ,7 7 4 ,9 5 7 4 ,0 9 6 ,5 6 0 2 ,6 7 8 ,3 9 7 20.2 9 8 .1 4 7 .2 ..2 0 9 .5 . . 8 4 .8 . . 1 8 9 .6 ...1 5 3 .0 ...1 3 7 .6 . . 1 6 9 .4 273 PAY RO LLS (A v . fo r 1 9 3 2 = 1 0 0 ) A l a 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 e s s e e .............................................. SIX S T A T E S .................................... 86.0 2 8 .2 7 8 .5 4 3 .4 101.8 1 2 6 .8 9 3 .5 1 3 5 .5 1 3 4 .4 237 T e n n e s s e e .......... SIX STA TES. 5 6 .3 6 9 .8 4 7 .3 5 8 .2 5 9 .9 4 0 .7 4 6 .1 1 7 1 .7 6 5 .1 1 3 0 .2 9 5 .2 1 4 0 .6 1 2 9 .5 1 0 6 .4 1 2 9 .5 1 2 8 .4 63 2 7 1 ,2 1 8 7 4 ,7 5 8 1 4 9 ,3 2 9 1 5 5 ,7 2 3 5 ,9 9 8 1 6 8 ,3 9 5 8 2 5 ,4 2 1 5 1 1 ,6 5 5 3 1 3 ,7 6 6 7 9 .0 5 2 .8 9 3 .0 8 5 .1 1 0 7 .9 .. 1 3 4 .5 .. 9 5 .7 . 1 4 6 .2 . .1 3 0 .8 . . 112.0 .. 1 3 2 .2 .1 3 1 .9 210 3 4 5 ,5 7 9 8 7 ,1 5 5 1 2 3 ,9 1 3 1 6 5 ,8 7 6 5 ,6 2 0 1 5 8 ,3 4 4 8 8 6 ,4 8 7 4 6 2 ,1 2 9 4 2 4 ,3 5 8 7 4 .4 5 5 .1 7 4 .9 1 0 5 .4 1 0 4 .5 1 4 7 .2 1 6 6 .7 1 3 9 .0 1 4 4 .0 29 351 3 7 4 ,5 7 0 8 9 ,4 6 8 F l o r i d a ...................................... G e o r g i a .............................................. 1 3 2 ,9 1 7 L o u i s i a n a ......................................... 1 6 8 ,9 9 1 M is s is s ip p i...................................... 6 ,7 1 4 T e n n e s s e e ......................................... 1 2 3 ,4 5 6 TO TA L S IX S T A T E S ............. 8 9 6 ,1 1 6 B y W a te r P o w e r .................... 5 2 6 ,5 4 1 B y F u e l s ........................................ 3 6 9 ,5 7 5 6 9 .8 1 1 2 .7 7 1 .2 5 4 .4 5 9 .8 1 6 3 .7 1 8 9.5 1 5 4.5 1 4 6.6 C O T T O N C O N S U M P T IO N — 3 S T A T E S .. . . . .1 8 0 .7 A l a b a m a ........................................... .............................................2 1 4 .3 G e o r g i a .......................................................................... . . 169.1 T e n n e s s e e ..................................................................... . . 1 5 4.9 E L E C T R IC P O W E R P R O D U C T IO N — k w h o u r s 7 2 .5 13 8.3 7 3 .2 5 0 .0 5 8 .3 8 5 .6 110 212 FAR M IN C O M E *— S ix S ta t e s . A l a 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 e s s e e ......................................... 7 4 .0 1 2 4 .0 7 3 .3 5 8 .2 6 2 .8 8 5 .0 14 0 254 30 424 (0 0 0 O m itte d ) J u ly A ug. J a n .- A u g ., In cl. 1 9 39 19 38 1939 1938 $ 3 2 ,5 9 4 $ 5 1 ,1 7 0 $ 3 6 3 ,4 0 2 $ 3 7 5 ,1 7 6 3 ,4 2 2 5 ,6 6 7 4 4 ,0 7 2 4 7 ,7 6 9 4 ,6 4 5 5 ,1 0 2 8 0 ,7 0 5 7 7 ,6 4 5 1 0 ,9 5 3 2 3 ,5 2 9 6 5 ,5 6 7 7 2 ,2 4 7 3,9-83 5 ,8 4 5 4 6 ,7 9 4 4 7 ,2 8 9 4 ,1 4 0 2 ,3 6 2 5 5 ,6 6 2 5 5 ,3 7 2 7 ,2 2 9 6 ,8 8 7 7 0 ,6 0 2 7 4 ,8 5 4 7 0 .3 1 3 1 .4 6 9 .5 4 9 .5 5 7 .1 9 6 .1 . 56 105 14 175 A ug. 1 939 4 5 ,3 6 7 4 ,7 7 8 3 ,7 5 8 1 8 ,2 6 7 6 ,9 3 2 5 ,2 4 8 6 ,3 8 4 1 2 7 .3 2 3 7 .5 1 0 8 .7 1 0 3 .0 1 0 2 .7 8 7 .6 4 9 .4 2 6 .9 5 6 .5 126 15 209 C O T T O N SEED C R U SH ED — T o n s * ................................................... 1 4 6 .3 2 8 0 .2 1 2 5 .9 1 1 4 .0 1 2 6 .3 7 6 .9 6 5 .9 4 5 .0 1 3 3.4 71 128 15 2 14 68 S e p t. 1938 1 1 9 .7 2 3 9 .9 1 0 5 .4 9 4 .8 9 4 .5 RETAIL S T O C K S *— U n a d ju s te d P IG IR O N P R O D U C T IO N — A L A B A M A *.. . S e p t. 1 938 3 D is t r ic t A u g . 1 9 39 ................. 4 6 8 .9 ................. 4 3 9 .9 ..................2 2 1 .3 ..................6 3 4 .6 M is s is s ip p i.................................................................. ................1 0 3.8 .................. 1 9 6 .7 SIX S T A T E S ........................................................... ................ 3 4 9 .8 B y W a te r P o w e r .................................................................. 3 9 1 .1 ..................3 0 4 .1 J u ly 1 9 39 4 3 2 .6 4 2 8 .5 2 0 6 .2 6 2 2 .9 86.6 2 5 2 .4 3 4 6 .1 3 4 3 .2 3 4 9 .2 110.0 1 2 4 .7 1 2 6 .0 3 3 9 .5 3 6 7 .7 2 4 8 .6 6 0 4 .3 9 2 .3 2 4 8 .2 3 2 2 .2 3 8 0 .0 2 5 8 .2 * In d e x e s of r e t a il s a le s , e le c t r ic p o w e r a n d p ig iro n p ro d u c tio n , a n d of cotton c o n su m p tio n a r e o n a d a ily a v e r a g e b a s is . 4 B u s in e s s C o n d it io n s in t h e S ix t h F ed er a l R eser v e N A T IO N A L SU M M A R Y O F B U S IN E S S C O N D IT IO N S D is t r ic t INDUSTRIAL PRODUCTION P r e p a re d b y th e B o ard of G o v e rn o rs of th e F e d e ra l R ese rv e S ystem "VTOLUME of industrial production, which had turned up sharply last summer, * advanced still more rapidly in the six weeks after the outbreak of war. Employment also increased but at a less rapid rate. Consumption of goods by industry and by indi viduals has not expanded so rapidly as production and orders. Buying of basic com modities, after a burst of activity in early September, has slackened considerably, but orders for many semi-finished goods and for finished products, particularly machin ery and railroad equipment, have continued in large volume. Most orders have come from domestic sources. Prices of basic commodities advanced sharply in the early part of September, but in recent weeks prices of foodstuffs have declined while prices of industrial materials in most instances have been maintained. Prices of finished goods have shown a much smaller advance. P ro d u c tio n In September the Board’s seasonally adjusted index of industrial production advanced to 110.0 per cent of the 1923-1925 average as compared with 103.0 in August and 92.0 last spring. Increases in output of iron and steel, flour, sugar, meat products, and petroleum were particularly marked in September. In the steel industry ingot production rose from an average rate of 61.0 per cent of capacity in August to 71.0 in September. In the first three weeks of October the rate advanced further to 90.0 per cent and actual volume of output was at the highest level on record. Flour production rose to near record levels and at meat-packing establishments activity was at the highest rate reached in several years. The sharp increase in output of crude petroleum followed a considerable reduction in the previous month and currently production is at about the high rate prevailing before wells were closed in the latter half of August. In other industries increases in activity, though quite general, were not so marked. Automobile production showed a sharp seasonal rise as volume production of new model cars was begun at most plants, and in related lines, such as plate glass, activity also increased. Textile production increased somewhat further from the high level reached earlier. Shoe production, however, which had been in large volume in the first eight months of the year, decreased in September. Mineral production advanced generally and iron ore shipment schedules were expanded to build up stocks at lower lake ports before the close of the shipping season. Value of construction contracts, as reported by the F. W. Dodge Corporation, rose further in September, reflecting a contraseasonal increase in private residential build ing. Other private construction showed little change and there was some reduction in the volume of new public projects, both residential and nonresidential. In d e x of physiccd v o lu m e of p ro d u c tio n , a d ju s te d for s e a s o n a l v a ria tio n , 1923-1925 a v e r a g e = 100. By m on th s/ J a n u a ry , 1934, to S e p te m b e r, 1939. FREIGHT-CAR LOADINGS In d e x of to ta l lo a d in g s of re v e n u e fre ig h t, a d ju s te d for s e a s o n a l v a ria tio n , 1923-1925 a v e r a g e == 100. By m o n th s, J a n u a ry , 1934, to S e p te m b e r, 1939. WHOLESALE PRICES D istrib u tio n In September and the early part of October department store sales increased con siderably. Freight-car loadings also advanced sharply, with the most marked increases reported in shipments of coal and of miscellaneous freight, which includes most manufactured products. C o m m o d ity P r ic e s Wholesale prices of foodstuffs declined after the middle of September, following sharp advances earlier in the month. Prices of industrial commodities, which rose considerably until the third week in September, subsequently were generally main tained, although prices of some materials, such as steel scrap, hides, and rubber, declined from earlier peak levels. In d e x e s c o m p ile d b y U . S. B u re a u of L a b o r S ta tistic s, 1926 = 100. By w e e k s , 1934, to w e e k e n d in g O c to b e r 14, 1939. MEMBER BANKS IN 101 LEADING CITIES B a n k C r e d it Following reductions during the early part of September, Government security holdings by member banks in 101 leading cities increased somewhat during the three weeks ending October 11, reflecting largely the purchase of Treasury bills. Commercial loans continued to increase, but at a less rapid rate than in late August and early September. The volume of demand deposits at city banks also increased further. Excess reserves, which had increased sharply at member banks during the first half of September, showed further moderate increases during the four weeks ending October 11. M o n e y R a te s a n d B o n d Y ie ld s Prices of United States Government securities increased in the latter part of September and the first half of October, following sharp declines early in September. Average yields on long-term Treasury bonds declined from 2.79 per cent on September 21 to 2.62 per cent on October 16. Yields on Treasury notes declined to 0.78 per cent from 1.30 per cent early in September. W e d n e s d a y fig u re s for re p o rtin g m e m b e r b a n k s in 101 le a d in g c itie s, S e p t. 5, 1934, to O c to b e r 11, 1939. C om m e rc ia l lo a n s , w h ic h in c lu d e in d u s tria l a n d a g ric u ltu ra l lo a n s, re p re s e n t p rio r to M ay 19, 1937, s o -c a lle d " O th e r lo a n s " a s th e n re p o rte d .
@FedFRASER