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V o lu m e X X V I A t la n t a , G e o r g ia , O c t o b e r 3 1 ,1 9 4 1 T H E M O N E Y A N D C R E D IT S IT U A T IO N In S e p te m b e r to ta l re s e rv e s of S ix t h D is t r ic t m e m b e r b a n k s re a c h e d th e h ig h on a d a ily a v e ra g e b a s is , $302 T H E S IX T H th a t d a te . It is to ta l 10 F E D E R A L R E S E R V E D IS T R IC T r is e in t o t a l lo a n s a n d in v e s t m e n ts s in c e e s t le v e l th e y h a v e e v e r a t t a in e d , t o t a l in g , IN N um ber The phenom enon o f e xce ss re s e r v e s w a s d is c u s s e d a t le n g th in th e D e c e m b e r to b e e x p e c te d , o f c o u r s e , t h a t a s s e ts , d e p o s its , 1941 is s u e s o f n o e x te n b e tw e e n th e is m a d e h e r e . S u ffic e i t to s a y t h a t th e re p o rt d a te , t o t a l m o v e m e n ts o f th e t o t a l a s s e ts c u r v e a n d m o s t im p o r t a n t s o u rc e o f th e g re a t in p o s it s of m em ber w e re a t r e c o r d th e h e ig h ts to ta l lo a n s banks in t h is a re a p e a k s th a t f a r e xce e d e d o f th e m id d le 1 9 2 0 ’s , an d d e p o s its c u rv e has re m a in e d 1 9 1 8 to d a te . T h e m o v e m e n t o f lo a n s a n d in v e s t m e n ts c o rre s p o n d e d c re a s e in re s e rv e fu n d s th e b a n k in g s y s te m w h o le s in c e 1933 in o f th e c o u n t r y a s a h a s b e e n th e tre m e n d o u s in flo w th e s e v e r y c lo s e ly w it h th e 1926 fr o m 1 9 1 8 to p e a k . A s u m m a ry o f th e r a p id a n d s t r ik of s h o rt H o w e v e r, re d u c t io n of in g s in c e 1 9 3 3 th e re h a s b e e n a g re a te r a n d d o lla r . In th e c o u n t r y a s a w h o le , a s in t h is a r e a s in c e 1 9 3 3 is p re s e n te d in th e g r e a te r th e S ix t h D is t r ic t , e x p a n s io n o f th e lo a n s g ro u p o f c h a r t s o n t h is a n d th e f o llo w c h ie f ly in d ic a t in g th e p r e s e n c e o f a n in and in g p a g e s , a n d , in c r e a s in g a m o u n t o f e x c e s s r e s e r v e s . n o t k e p t p ace m ay w e re in v e s tm e n ts to ta l c lo s e fr o m s iv e t h e o r e t ic a l a n a ly s is o f th e p r o b le m of banks and th e th e a n d th e F e b r u a r y lo a n s de f o llo w 1940 t h is R e v i e w . F o r t h a t re a s o n s a m e t r e n d . T h e s im ila r it y to ta l w il l to ta l a s o f S e p te m b e r 2 4 , th e m o s t re c e n t c a ll and in v e s t m e n ts and m illio n . P r e lim in a r y f ig u r e s in d ic a t e th a t a s s e ts and to ta l s lig h t ly c h a n g e s in th e ab o ve b a n k in g p ic t u r e in o r d e r t h a t th e re a d e r b e tt e r v is u a liz e th e p r e s e n t s it u a t io n , th e c h a r t s h a v e b e e n c a r r ie d b a c k o f 1933. a b r in g s to g e th e r f o r p u r p o s e s o f c o m p a ris o n th e c h a n g e s in th e 1 9 3 3 , w it h p e r io d d iv e rg e n c e ► T h e g ro w th in th e e x c e p tio n 1925. b e tw e e n th e tw o , o f e x c e s s r e s e r v e s in t h is D is t r ic t s in c e 1 9 3 3 is r e fle c te d in C h a r t III. ► C h a rt N o . I t h a t o f t o t a l d e p o s its The e x is t e n c e of e xce ss re s e r v e s o f g o ld , c o u p le d w it h a n in c r e a s e d d o m e s tic p r o d u c tio n o f g o ld a n d th e 1 9 3 4 th e g o ld c o n te n t of th e in v e s t m e n ts o f m e m b e r b a n k s h a s s e rv e s , so w it h th a t, th e g ro w th d e s p ite th e o f re fa c t th a t re s e r v e r e q u ire m e n t s a f t e r N o v e m b e r 1 w il l b e t w ic e a s h ig h a s in 1 9 3 3 , th e o v e r a lo n g p e r io d o f y e a r s is a c h a r a c v o lu m e o f e x c e s s r e s e r v e s in th e c o u n t r y t e r is t ic a s a w h o le w il l s t i l l t o t a l a b o u t $ 4 b i l of th e p o s t- 1 9 3 3 p e r io d o n ly . to t a l a s s e t s , t o t a l d e p o s its , a n d th e t o t a l T h e c h a r t r e fle c t s t h is , f o r in th e p e r io d lio n , a n d in t h is D is t r ic t w i l l a m o u n t to lo a n s a n d in v e s t m e n ts o f m e m b e r b a n k s fr o m so m e $ 7 5 m illio n . 1 9 2 6 to 1 9 3 2 e x c e s s re s e r v e s (t h e in t h is D is t r ic t s in c e th e c lo s e o f W o r ld a re a b e tw e e n th e tw o c u r v e s ) w e re v i r ►Fo r th e W a r I . T h e c h a r t illu s t r a t e s th e g ro w th t u a lly n o n - e x is t e n t ; in d e e d , d u r in g m o s t lo a n s and o f th e s e t h re e b a la n c e s h e e t it e m s in th e of p e r io d fr o m th e re w e r e , a s w e ll a s a p o r t io n 1 9 1 8 to th e m id d le 1 9 2 0 ’ s , th e 1 9 2 0 ’s su ch th e p r e c ip it o u s d e c lin e o f a l l th re e fr o m r e q u ir e d th e m id d le e x is t e n c e by c o m m e r c ia l c o u n tin g of p a p e r a t th e m a r k a b le 1 9 2 0 ’ s to 1 9 3 3 , a n d th e r e in c r e a s e s in t o t a l d e p o s its and th e t o t a l a s s e ts a n d m o re m o d e ra te re s e rv e s , e xce ss w e re re s e rv e s b ro u g h t b a n k s’ as o f th e in t o r e d is F e d e ra l s e rv e B a n k s . Re p a st le s s r a p id ly in th e year th e in v e s tm e n ts in n a t io n . th e S ix t h T h is C h a r t N o . I I . T h is e x p a n s io n has is of p ro c e e d e d D is t r ic t th a n illu s t r a t e d c h a r t g iv e s s e rv e s o f m e m b e r b a n k s in th e by re th e D is t r ic t a s a p e rc e n ta g e o f re s e r v e s o f a l l m e m - Continued on page 57 CHART I TOTAL D EP O SIT S, TOTAL A SS E T S, A N D L O A N S A N D IN V E ST M EN T S O F SIXTH D IS T R IC T M E M B E R B A N K S C a l l R e p o r t D a t e s . 1 9 1 8 -1 9 4 1 M IL L IO N S O F D O L L A R S ( SEM I ~ LOGARITHM 1C S C A L E ) M IL L IO N S O F D O LLA R S M o n t h l y R e v ie w o f th e f e d e r a l R e s e rv e B a n k o f A t la n t a f o r O c to b e r 1941 CONDITION OF FEDERAL RESERVE BANK OF ATLANTA (In Millions ol Dollars) per Cent Change Oct. 15, 1941, from Oct. 15 Sept. 17 Oct. 16 Sept. 17 Oct. 16 1940 1941 1940 1941 1941 .1 Bills discounted...................... .04 .06 .3 .2 .3 rndustrial advances................ 90.6 92.1 * i 1( 33 0. S. securities....................... 93.2 91.0 92.3 Total bills and securities. . . . . 93.6 + l f 38 177.9 235.8 + 5 F. R. note circulation............ 246.9 228.2 304.5 -+ 1 -f 35 Member bank reserve deposits... 308.8 24.6 15.8 + 28 • • 17 U. S. Gov't deposits................ 20.3 38.7 26.2 + 7 + 58 Foreign bank deposits.......... 41.3 + 4 + 32 7.9 6.2 Other deposits....................... 8.2 285.2 366.9 + 3 + 33 Total deposits...................... 378.6 + 42 •I- 3 375.7 516.9 Total reserves......................... 534.2 .5 1.0 Industrial advance commitments. 1.0 CONDITION OF 22 MEMBER BANKS IN SELECTED CITIES (In Millions ol Dollars) per Cent Change Oct. 15, 1941, from Oct. 15 Sept. 17 Oct. 16 Sept. 17 Oct. 16 1941 1940 1940 1941 1941 + 4 1 16 659.5 739.6 Loans and Investments—Total . 766.0 1 8 f 25 382.9 333.0 Loans—Total....................... . 414.7 Commercial, industrial, and j- 26 191.7 169.1 + 11 agricultural loans............ 213.6 • 11 + 132 2.2 5.7 5.1 Open market paper............ Loans to brokers and dealers 5.6 t- 43 6.1 r 31 8.0 in securities.............. Otner loans fof purchasing t- 3* 10.4 + 23 11.3 and carrying securities... . 13.9 — 6 + 16 40.7 32.9 33.1 Real estate loans.............. 1.7 1.6 1.1 + 6 + 55 Loans tobanks.................. 111.7 125.8 +. 7 + 20 Other loans....................... 134.2 1 + 8 326.5 356.7 Investments—Total................ 351.4 171.1 149.3 — 3 + 11 U. S. direct obligations....... . 165.9 Obligations guaranteed by 4- 3 + 8 66.3 71.6 69.8 U. S.................... - 2 + 3 115.7 110.8 Other securities.................. 113.9 — 0 + 37 197.4 144.3 197.3 Reserve with F. R. Bank. .. 16.4 16.1 13.1 :t 2 + 25 Cash in vault....................... • 7 + 19 277.7 215.6 Balances with domestic banks.. 257.2 + 3 + 30 428.3 . 557.8 542.9 Demand deposits-adjusted 152.7 190.1 + 1 + 3 Time deposits....................... 195.4 71 — 64 42.0 15.1 51.6 U. S. Gov't deposits............... 314.1 380.3 + 6 + 29 Deposits of domestic banks..... 403.9 Borrowings.......................... DEBITS TO INDIVIDUAL ACCOUNTS Per Cent Change (In Thousands of Dollars) Sept. 1941 from Sept. Sept Aug. 1940 Aug.1941 Sept.1940 1941 1941 ALABAMA 94,922 + 10 + 50 141,995 128,569 Birmingham......... 3,419 + 16 + 60 4,725 5,473 Dothan........... 43,002 + 5 + 60 65,550 68,691 Mobile................ 24,067 31,849 28,667 t- 11 + 32 Montgomery........ FLORIDA + 30 75,911 .... 6 98,395 104,831 lacksonville.......... 51,541 43,692 55.802 4- 8 + 28 Miami.... .......... + 40 1 3 ,4 9 5 9,933 + 3 13 ,9 4 0 Pensacola............ 28,524 5 + 30 38,893 37,103 Tampa................. GEORGIA 5,383 + 5 + 45 7,404 7,785 Albany................ 212,471 • 2 + 29 274,301 281,089 Atlanta................ 18,615 + 4 + 41 25,227 26,203 Augusta........ 2,814 + 6 + 28 3,609 3,393 Brunswick........... 18,364 "+* 1 + 38 24,891 25,260 Columbus............ 1,252 + 1 + 10 1 ,3 8 0 1 ,3 7 0 Elberton.............. 16,928 "h 4 + 59 Macon................ 26,902 25,785 1,967 . + 13 + 67 2,907 3,277 Newnan............... 1 + 33 39,055 29,062 38,743 Savannah........... 4,798 -• 36 + 38 6,604 10,296 Valdosta.............. LOUISIANA 1 45 288,159 205,390 1 4 298,697 New Orleans........ MISSISSIPPI 10,164 i 17 1131 11,854 5,123 Hattiesburg......... 28,843 t 2" * 4 Jackson............... 36,359 34,931 9 f 46 12,177 19,397 Meridian.............. 17,722 ! 4B 6,636 + 35 7,187 Vicksburg............ 9,712 TENNESSEE 43,036 + 5 4 43 58,441 Chattanooga .. . 61,528 ! 37. 30,096 4 4 Knoxville............. 38,158 39,755 i ?8 85,634 i 7 118.424 110,913 Nashville............. . .. SIXTH DISTRICT \ 39 1 3 26 Cities........... 1,461,363 1,425,038 1,052,059 UNITED STATES * 30 274 Cities............ 43,870,000 42,847,000 33,812,000 1 2 RETAIL TRADE —SEPTEMBER 1941 (Cities lor which no indexes are compiled) Sales for September compared with : Aug. 1941 Sept. 1940 Aug. 1941 Sept. 1940 Baton Rouge. + 21 + 22 Knoxville........ - - 5 •- 21 Chattanooga.... + 2 +20 Macon............ - 30 36 fackson........... + 18 4- 26 Montgomery.... 4- 11 + 18 Jacksonville..... + 4 +24 Tampa ........... 11 + 6 D is t r ic t In S e p te m b e r a ll t r a c t s a w a rd e d S u m m a ry p r e v io u s in re c o rd s th e S ix t h of D is t r ic t o f c o n s t r u c t io n w e re co n b r o k e n , b u ild in g p e r m its is s u e d a t r e p o r t in g c it ie s re c o r d e d a s u b s t a n t ia l g a in , a n d th e re w e re f u r t h e r in c r e a s e s in p ig ir o n c lin e d t e x t ile o p e r a t io n s a n d in p r o d u c t io n . D e p a rtm e n t s to r e s a le s , h o w e v e r, S e p t e m b e r, a f t e r a llo w a n c e is m a d e f o r th e u s u a l in s e a s o n a l c h a n g e , a lth o u g h th e S e p t e m b e r in d e x is de th e h ig h e s t o n re c o r d f o r th a t m o n th , a n d w h o le s a le tr a d e in c r e a s e d le s s th a n it u s u a lly does in S e p te m b e r as c o m p a re d w it h A u g u s t. ► S ix t h D is t r ic t d e p a rtm e n t s to r e s a le s in c r e a s e d in S e p te m b e r b u t th e g a in w a s o n ly h a lf t h a t w h ic h m ig h t h a v e b e e n e x p e c te d o n th e b a s is o f e x p e r ie n c e o f p a s t y e a r s . T h e r a t e o f s a le s in S e p t e m b e r w a s 1 0 p e r c e n t g r e a t e r th a n A u g u s t a n d 2 0 p e r c e n t g r e a t e r th a n in The f a ilu r e u s u a lly o f S e p t e m b e r s a le s to in c r e a s e a s m u c h a s th e y had o ve r A u g u st m ay be a t t r ib u t a b le , a t p a r t , to th e f a c t t h a t t h e r e g u la t io n th e B o a r d i t w a s in S e p t e m b e r la s t y e a r . le a s t in o f c o n s u m e r c r e d it b y o f G o v e r n o r s o f th e F e d e r a l R e s e r v e S y s te m be c a m e e ffe c t iv e o n S e p te m b e r 1 , a n d to th e f u r t h e r f a c t t h a t th e a d ju s te d in d e x , w h ic h m a k e s a llo w a n c e f o r s e a s o n a l te n d e n c y , ro s e o th e r 10 ju s t e d in in d e x fr o m d e x e s , b o th re c o r d e d in t h is J u ly by 10 p e r cen t and p e r c e n t . N o t w it h s t a n d in g A u g u s t to u n a d ju s te d fo r and t h a t m o n th B a n k ’s s e r ie s , lo w e r th a n th o s e th a n any m o n th fo r o th e r a d ju s t e d , a r e th e A u g u st b y a n th e tw e n ty - tw o th e a lth o u g h in d e c lin e in th e ad S e p t e m b e r, th e S e p te m b e r in in and th e h ig h e s t e v e r y e a rs in c lu d e d S e p te m b e r a d ju s t e d in d e x , fo r A u g u st an d J u l y , is h ig h e r in th e s e r ie s . The la r g e s t in c re a s e o v e r S e p te m b e r 1 9 4 0 , 3 6 p e r c e n t , w a s re p o r te d fr o m M aco n , and g a in s r e p o rte d fr o m of v i ll e , A t la n t a , B a to n T o t a l s a le s in S e p te m b e r, w e re y e a r, a n d fo r o ver year la s t b e tw e e n 20 and 30 per cen t w e re N e w O r le a n s , B ir m in g h a m , J a c k s o n , J a c k s o n R o u g e , K n o x v ille , a n d th e n in e 20 per t h is cen t c u m u la t iv e w e re C h a tta n o o g a . m o n th s p e r io d , J a n u a r y g re a te r p e r io d re p o r te d t h is th e fro m year th ro u g h th a n la s t la r g e s t in c r e a s e s J a c k s o n v ille , M aco n , B ir m in g h a m , T a m p a , C h a tta n o o g a , J a c k s o n , a n d N a s h v ille . R e p o rts a o f s a le s c la s s if ie d n u m b e r o f s to r e s in d ic a t e by d e p a rtm e n ts f r o m t h a t th e te m b e r o v e r th a t m o n th a y e a r a g o w e re in The h o u s e h o ld g a in s s m a lle r m o n th in in s a le s of S e p te m b e r th a n p r io r to th e th e y e f fe c t iv e d a te s m a lle r la r g e r in c r e a s e s in a p p lia n c e s w e re of in th e Sep w o m e n ’s w e a r. w e re m u ch A u g u s t , th e C o n su m e r la s t C r e d it R e g u la t io n . In v e n t o r ie s a t d e p a rtm e n t s to r e s in c r e a s e d 1 4 p e r c e n t fr o m A u g u s t to S e p te m b e r a n d w e re 3 4 p e r c e n t g re a te r th a n a y e a r a g o , a n d w h o le s a le s to c k s d e c lin e d 4 p e r c e n t in S e p te m b e r a n d w e re 1 5 p e r c e n t la r g e r th a n a y e a r a g o . ► W h o le s a le S e p te m b e r tr a d e o ver in th e A u g u s t, D is t r ic t a g a in in c r e a s e d 3 so m e w h a t per cen t s m a lle r in th a n u s u a lly o c c u r s , b u t w a s 4 6 p e r c e n t g r e a t e r th a n in S e p te m b e r la s t y e a r . L i f e in s u r a n c e s a le s in t h is D is t r ic t in c r e a s e d 8 p e r c e n t fr o m A u g u s t to S e p te m b e r a n d w e re 2 1 p e r c e n t a b o v e th a t m o n th a y e a r a g o , w h ile in t h e ,c o u n t r y a s a w h o le S e p te m b e r s a le s w e re 1 6 p e r c e n t fro m ab out th e sa m e as in A u g u st and up S e p te m b e r la s t y e a r . I n S e p te m b e r b u s in e s s f a ilu r e s in t h is D is t r ic t d e c lin e d 2 9 p e r c e n t in n u m b e r , b u t li a b ilit ie s n e a r ly d o u b le d o v e r th e A u g u s t f ig u r e s . A s c o m p a re d w it h S e p t e m b e r 1 9 4 0 th e n u m b e r o f f a ilu r e s w a s d o w n 3 0 p e r c e n t b u t lia b ilit ie s w e re u p M o n t h ly R e v ie w o f t h e f e d e r a l R e s e r v e B a n k o f A t la n t a f o r O c t o b e r 1 M 1 B u s in e s s 3 0 p e r c e n t. In of f a ilu r e s C o n d itio n s th e f ir s t n in e m o n th s o f t h is y e a r th e n u m b e r w as 29 p e r c e n t s m a lle r th a n in th a t p a rt of 1 9 4 0 a n d lia b ilit ie s w e re 1 6 p e r c e n t le s s . ► T h e v a lu e D is t r ic t , o f c o n s t r u c t io n a fte r re a c h e d b r e a k in g c o n t r a c t s a w a rd e d a ll p r e v io u s a n e v e n h ig h e r le v e l in in re c o rd s S e p t e m b e r. T h e t o t a l w a s 1 3 p e r c e n t la r g e r th a n th e r e v is e d th e S ix t h in A u g u s t, S e p te m b e r to ta l fo r A u g u s t, a n d n e a r ly f o u r t im e s th e a m o u n t re p o rte d f o r S e p te m b e r la s t y e a r . R e s id e n t ia l a w a r d s in S e p te m b e r w e re a b o u t a t h ir d le s s th a n t h e y w e re in A u g u s t b u t 1 7 p e r c e n t g r e a t e r th a n a y e a r a g o , w h ile “ a ll o t h e r” c o n tra c ts in c r e a s e d 24 p e r c e n t f u r t h e r in S e p te m b e r a n d w e re m o re th a n f iv e tim e s th e S e p te m b e r 1 9 4 0 t o t a l. I n c o n s t r u c t io n c o n t r a c t s in to ta l o f $ 4 7 8 th e f ir s t t h re e q u a r t e r s o f 1 9 4 1 t h is D is t r ic t h a v e m illio n , la r g e r by $141 a m o u n te d to m illio n , o r 4 2 a per c e n t , th a n in t h a t p a r t o f la s t y e a r , a n d a lth o u g h r e s id e n t ia l a w a r d s in t h a t c u m u la t iv e p e r io d d e c lin e d 6 p e r c e n t, o th e r c la s s e s o f a w a r d s in c r e a s e d 7 3 p e r c e n t. I n th e 3 7 E a s te rn S t a te s f o r w h ic h F . W . D o d g e C o r p o r a t io n f ig u r e s a r e a v a il a b le t o t a l c o n t r a c t s d e c lin e d 1 8 p e r c e n t in w e re 7 9 p e r c e n t g r e a te r th a n in S e p te m b e r b u t S e p te m b e r la s t y e a r , a n d th e n in e m o n th s t o t a l i s u p 6 2 p e r c e n t . C o tto n t e x t ile co n su m e d a n n e s s d a y in m ills in A la b a m a , G e o r g ia , a n d a v e r a g e o f 1 1 ,8 7 3 b a le s o f c o tto n T e n n e sse e e ach b u s i S e p t e m b e r, a n in c r e a s e o f a b o u t 3 p e r c e n t o v e r th e r a t e f o r A u g u s t a n d 3 5 p e r c e n t g r e a t e r th a n in S e p te m b e r la s t y e a r . T h e S e p t e m b e r in c r e a s e p la c e s th e in d e x a t a p o in t o n ly o n e p e r c e n t u n d e r th o s e f o r M a y , J u n e , a n d J u ly a n d , w it h th e s e e x c e p t io n s , h ig h e r th a n f o r a n y o th e r m o n th o n r e c o r d . I n th e n a t io n a s a w h o le , a c c o r d in g to th e B o a r d ’ s in d e x , c o tto n c o n s u m p tio n d e c lin e d 2 p e r c e n t in S e p te m b e r b u t w a s u p 3 1 p e r c e n t fr o m S e p t e m b e r la s t y e a r . ► S t e e l m il l B irm in g h a m - G a d s d e n a c t iv it y in th e a re a w as r e p o rte d a t 9 6 .5 p e r c e n t o f c a p a c it y in th e f ir s t t h re e w e e k s o f S e p t e m b e r, d e c lin e d to 87 p e r c e n t in th e w e e k e n d e d S e p te m b e r 2 7 , a n d ro s e b y th e t h ir d w e e k in O c to b e r to 9 9 .0 p e r c e n t . T h e D is t r ic t r a t e h a s b e e n s lig h t ly th e c o u n t r y a s a w h o le in b e lo w e n d e d O c to b e r 1 8 i t w a s o n e p o in t h ig h e r . T h e ir o n p r o d u c t io n in th a t fo r re c e n t m o n th s , b u t f o r th e w e e k r a t e o f p ig A la b a m a a d v a n c e d 7 p e r c e n t f u r t h e r in S e p t e m b e r, w h e n i t w a s th e h ig h e s t s in c e M a r c h , a n d 4 p e r c e n t h ig h e r th a n S e p te m b e r a in tw e lv e y e a r s a n d t io n , r a is in g S e p te m b e r fu rn a c e th a t o n ly 1940. A t had r e c e n t ly been th e out o f b e g in n in g o p e ra tio n r e b u ilt w a s p u t in t o th e n u m b e r o f a c t iv e fu r n a c e s in of fo r o p e ra A la b a m a to 19 f o r th e f ir s t tim e in m a n y y e a r s . A d e c lin e o f 1 9 p e r c e n t in th e r a t e o f c o a l p r o d u c tio n in A la b a m a s io n d u r in g o f a c t iv it y S e p te m b e r, d u e to th e te m p o ra ry a t so m e o f th e m in e s , w a s p a r t ly a n in c r e a s e o f 4 p e r c e n t in su sp e n o ffs e t b y T e n n e s s e e , b u t th e D is t r ic t in d e x w a s d o w n 1 1 p e r c e n t a t a tim e w h e n p r o d u c t io n n o r m a lly in c r e a s e s . S e p t e m b e r o u tp u t w a s , n e v e r t h e le s s , 4 c e n t g re a te r th a n c o u n try as a it w h o le w as in S e p te m b e r la s t S e p t e m b e r p r o d u c tio n cen t o v e r A u g u st a n d w as 13 per y e a r. F o r in c re a s e d p e r c e n t h ig h e r th a n 4 th e per a year ago. E le c t r ic p o w e r p r o d u c t io n in c r e a s e d 3 p e r c e n t in Aug u s t , f o llo w in g a r is e o f 4 p e r c e n t in J u ly , a n d in S e p te m b e r c o n tin u e d a t th e A u g u s t le v e l. S e p te m b e r o u tp u t w a s 2 4 p e r cen t g r e a te r th a n in t h a t m o n th la s t C o n tin u e d o n page 58 y e a r. P r o d u c t io n of 55 SIXTH DISTRICT BUSINESS INDICATORS Indexes (1923-1925 Average = 100, except as noted) Adjusted Unadjusted Sept.Aug. Sept. Sept. Aug. Sept. 19411941 1940 1941 1941 1940 RETAIL SALES* (1935-1939 Av. - 100). DISTRICT (47 Firms).....................146 163 122 158 144 132 150 Atlanta........................................................... 177 164 Birmingham.....................................................176 153 140 Nashville........................................................ 136 132 120 New Orleans.............................. .....................148 146 125 PPTH IT G T A T T S DISTRICT (21 Firms).....................107 101 76 114 98 81 Atlanta...................................... 215 216 138 236 205 152 Birmingham................................. 80 99 73 82 94 75 Nashville.................................... 96 74 58 103 73 63 62 96 76 65 New Orleans............................... 91 78 WHOLESALE SALES TOTAL...................................... ..................... 99 96 70 Groceries........................................................ 73 70 53 Dry Goods.................................. ....................103 105 74 Hardware........................................................171 171 119 Drugs............................................................ 145 128 108 CONTRACTS AWARDED DISTRICT.................................. ................330 293r 89r 80r Residential...................................................... 94 141 Others.......................................................488 384r 95 Alabama..................................... .................... 260 580 150 Florida...................................... ..................... 59 197 83 Georgia..................................... .................... 271 533 75 Louisiana........................................................ 141 338 69 129 Mississippi.................................. ...................1057 147 Tennessee.................................. ................... 1319 229 98 BUILDING PERMITS 20CITIES........................................................110 75 73 Atlanta...................................... ..................... 78 32 56 Birmingham..................................................... 26 50 34 Jacksonville..................................................... 85 102 86 Nashville.........................................................23 17 22 New Orleans.............................. .....................425 46 83 PIG IRON PRODUCTION* 130 Alabama..................................... ....................135 126 COAL PRODUCTION (1935-1939Av. = 100) TWO STATES.............................. 138 172 132 135 152 130 Alabama..................................... ....................125 155 131 Tennessee.................................. .................... 152 146 126 COTTON CONSUMPTION* THREE STATES........................... .................... 250 243 186 Alabama..................................... ....................303 294 224 Georgia..................................... .................... 231 223 169 Tennessee.................................. .................... 218 228 187 EMPLOYMENT (1932Av. = 100) SDCSTATES.....................................................156 154 132 Alabama..................................... ....................173 169 142 Florida...................................... ..................... 99 96 91 Georgia..................................... .................... 174 176 147 Louisiana........................................................ 145 143 128 Mississippi......................................................134 128 103 Tennessee.................................. .................... 155 154 133 PAYROLLS (1932Av. = 100) 188 SIX STATES.....................................................252 249 Alabama..................................... ....................384 376 252 Florida...................................... .....................106 103 91 Georgia..................................... .................... 284 284 209 Louisiana........................................................ 201 198 162 Mississippi......................................................211 197 134 Tennessee.................................. .................... 251 248 178 ELECTRIC POWER PRODUCTION* (1935-1939 Av. =- 100) TOTAL...................................... ..................... 175 175 141 By Water Power.......................... ..................... 127 140 139 By Fuel...................................... ....................237 222 144 Statistics (000 Omitted) Sept. Aug. Sept. Year to Date COMMERCIAL FAILURES 1941 1941 1940 1941 1940 Number(Actual, notthousands).. 30 42 43 364 510 Liabilities.............................. $ 632 $ 317 $ 488 $ 4,211 $ 5,010 Aug. July Aug. Year toDate FARM INCOME** 1941 1941 19® 1941 l94^ SIX STATES........................... $58,110$38,693 $51,724 $465,211 $400,726 Alabama................................ 7,080 5,559 5,048 59,009 50,479 Florida.................................. 4,736 3,430 4,603 95,822 77,691 Georgia................................. 21,246 8.673 21,856 82,343 77,884 Louisiana.............................. 5e737 47452 7,253 65,982 59,924 Mississippi............................. 7,900 5,283 5,788 69,749 59,689 Tennessee............................. 11,411 11,296 7,176 92,306 75,059 ‘Indexes of retail sales, electric power and pig iron production, and of cotton consumption are on a daily average basis. ‘‘Includes Government benefit payments, r = Revised. 56 M o n t h l y R e v ie w o f t h e f e d e r a l R e s e r v e B a n k o f A t l a n t a f o r O c t o b e r 1 9 4 1 INDUSTRIAL PRODUCTION N a tio n a l S u m m ary o f B u sin e ss Preparedby the Boardol Oofwmn of ft* Federal Reserve System In d u s tria l a c tiv ity co n tin u e d a t a h ig h ra te in S e p te m b e r an d th e firs t h a ll o f O cto b e r. F u rth e r ad van ce s in th e o u tp u t o f d e fe n se p ro d u cts w e re acco m p an ied b y c u rta ilm e n t in som e lin e s o f c iv ilia n g oods, p a rtic u la rly a u to m o b ile s, ru b b e r, an d s ilk . P ric e s o f in d u s tria l p ro d u cts in cre a se d fu rth e r b u t a g ric u ltu ra l p ric e s d e clin e d a fte r th e m id d le o f S e p te m b e r, an d o n O cto b e r 16 d ro p p ed sh a rp ly in re sp o n se to in te rn a tio n a l d evelo p m en ts. P r o d u c tio n Federal Becerra Index of physical volume oi production, adjusted for seasonal variation, 1935-1939 average = 100. By months, January 1935 to September 1911. In d u s t ria l o u tp u t in cre a se d b y ab o u t th e u su a l se a so n a l am o u n t in S e p te m b e r an d th e B o a rd ’ s a d ju ste d in d e x re m a in e d a t 160 p e r c e n t o f th e 1935-1939 a ve ra g e , th e sam e a s in J u ly an d A u g u st. C o n tin u e d in c re a s e s in a c tiv it y w e re re p o rte d in th e m a c h in e ry , a ir c r a ft , an d s h ip b u ild in g in d u s trie s . A t ste e l m ills a c tiv ity in S e p te m b e r an d th e firs t h a lf o f O cto b e r w a s m a in ta in e d a t ab o u t 9 7 p e r c e n t o f c a p a c ity . O u tp u t an d d e liv e rie s o f n o n fe rro u s m e ta ls lik e w is e re m a in e d a t ab o u t c a p a c ity le v e ls , w h ile lu m b e r p ro d u ctio n d e c lin e d so m ew h at fro m th e h ig h A u g u st ra te . A u to m o b ile p ro d u ctio n in c re a se d le s s th a n se a so n a lly in S e p te m b e r, fo llo w in g th e ch an g e o ve r to n e w m o d e ls, a n d , a cc o rd in g to p re lim in a ry e stim a te s, o u tp u t in S e p te m b e r w a s c o n sid e ra b ly b e lo w th e m axim u m q u o ta th a t h a d b een a u th o rize d b y th e G o ve rn m e n t. In th e te x tile in d u s try a c tiv ity d e c lin e d so m ew h at in S e p te m b e r, re fle c tin g m a in ly a fu rth e r sh a rp re d u c tio n a t s ilk m ills . A c t iv ity a t w o o l m ills ro se to a n e w h ig h le v e l, w h ile a t co tto n m ills th e re w a s lit t le ch an g e fro m a ra te s lig h tly b e lo w th e p e a k re a ch e d la s t M a y . S h o e p ro d u ctio n co n tin u e d in la rg e v o lu m e , a n d o u tp u t o f m a n u fa ctu re d fo o d p ro d u cts w a s m a in ta in e d n e a r th e p e a k A u g u st le v e l. O u tp u t o f ch e m ic a ls lik e w is e co n tin u e d a t e a rlie r h ig h ra te s , b u t a t ru b b e r p la n ts a c tiv it y w a s c o n sid e ra b ly b elo w th e le v e l o f la s t su m m er o w in g to c u rta ilm e n t p ro g ram s o rd e re d b y th e G o ve rn m e n t. Federal Reserve indexes ol value of sales and stocks, adjusted for seasonal variation, 1923-1925 average = 100. I f months, January 1935 to September 1941. WHOLESALE PRICES OF BASIC COMMODITIES — r r ! AN A i v - i f j 1935 j n r / .j T j v / \ iA i T jjj V s L w V! ^ - - . 1- - - - - - - - W — MOUSTRMU \ r MATERIALS “ . 120 Zn 1936 V a lu e o f co n stru c tio n c o n tra c t a w a rd s d e c lin e d in S e p te m b e r, a cc o rd in g to fig u re s o f th e F . W . D odge C o rp o ra tio n , re fle c tin g c h ie fly d e cre ase s in a w a rd s fo r p u b lic p ro je c ts w h ic h h a d b een e x c e p tio n a lly la rg e in A u g u st. A w a rd s fo r p riv a te re s id e n tia l b u ild in g a lso d e c lin e d , w h ile c o n tra c ts fo r o th e r p riv a te w o rk in c re a se d so m ew h at fu rth e r. T o ta l a w a rd s in S e p te m b e r, a s in A u g u st, w e re 8 0 p e r c e n t la rg e r th a n in th e co rre sp o n d in g p e rio d la s t y e a r. T h is h ig h e r le v e l re fle c te d m a in ly a g re a te r am o u n t o f p u b lic co n s tru c tio n , w h ic h w a s n e a rly th re e tim e s a s la rg e a s a y e a r ag o , co m p ared w ith a n in c re a se o f ab o u t 10 p e r c e n t fo r p riv a te c o n stru c tio n . ft 1 r N N i fo o o sru rr* / 193? 1938 C o a l p ro d u ctio n , w h ic h d u rin g th e su m m er m o n th s h a d been u n u su a lly la rg e , in cre a se d le s s th a n se a so n a lly in S e p te m b e r, o w in g in p a rt to te m p o ra ry w o rk sto p p ag es a t som e b itu m in o u s a n d a n th ra c ite m in e s. C ru d e p e tro le u m p ro d u ctio n ad van ce d to re co rd le v e ls in S e p te m b e r an d d ie firs t h a lf o f O cto b e r, an d o u tp u t o f m e ta ls an d sh ip m e n ts o f iro n o re d ow n th e L a k e s co n tin u e d a t ab o u t c a p a c ity . O n O cto b e r 9 , th e S u p p ly P rio ritie s an d A llo c a tio n s B o a rd an n o u n ced th a t, e ffe c tiv e im m e d ia te ly , no p u b lic o r p riv a te c o n stru c tio n p ro je c ts w h ic h u se c r it ic a l m a te ria ls co u ld be sta rte d d u rin g d ie e m erg en cy u n le ss th e se p ro je c ts w e re e ith e r n e ce ssa ry fo r d ire c t n a tio n a l d efen se o r e sse n tia l to th e h e a lth a n d s a fe ty o f th e n a tio n . - - - - - - - - - - 100 80 1939 1940 D is tr ib u tio n 1941 Bureau of Labor Statistics' index based on 12 foodstuffs and 16 industrial materials. August 1939= 100. Thursday January 3, 1935, to October 16, 1941. MEMBER BANKS M 101 LEADING CITIES D is trib u tio n o f g e n e ra l m e rch a n d ise show ed le s s th a n th e cu sto m a ry se a so n a l ris e in S e p te m b e r, fo llo w in g a n u n u su a lly la rg e vo lu m e o f sa le s in A u g u st. D u rin g th e p a st th re e m o n ths sa le s h a ve te e n la rg e r th a n in th e co rre sp o n d in g p e rio d o f a n y p re vio u s y e a r. In th e fir s t h a lf o f O cto b e r sa le s a t d e p artm e n t sto re s d e clin e d fro m th e p e a k re ach e d in la te S e p te m b e r w h en th e re w e re co n sid e ra b le co n su m e r p u rc h a se s, p a rtic u la rly o f a rtic le s su b je c t to h ig h e r ta x e s on O cto b e r 1 . L o a d in g s o f re ve n u e fre ig h t in S e p te m b e r in c re a se d le a s th a n se a so n a lly , p a rtic u la rly th o se o f m isce lla n e o u s fre ig h t, w h ic h h a ve been h ig h in re c e n t m o n th s, an d lo a d in g s o t c o a l, w h ic h w e re c u rta ile d d u rin g p a rt o f th e m on th b y w o rk sto p p ag es a t som e m in e s. S h ip m e n ts o f fo re st p ro d u cts d e c lin e d c o n sid e ra b ly fro m th e h ig h A u g u st le v e l. C o m m o d ity P r ic e s 1930 Wednesday figures, January 3, 1935, to October 8, 1941. Commercial loans, which include industrial and agricul tural loans, represent prior to May 19, 1937, so-called "Ottier Loans" as then reported. P ric e s o f in d u s tria l p ro d u cts co n tin u e d to ad van ce in S e p te m b e r an d th e firs t h a lf o f O cto b e r an d F e d e ra l p ric e c e ilin g s w e re an no u n ced fo r a d d itio n a l co m m o d itie s, in c lu d in g le a d in g typ e s o f lu m b e r, c o k e , w a ste p a p e r, p a p e rb o a rd , a c e tic a c id , a lc o h o ls, an d card e d co tto n y a rn s . In som e c a se s th e se c e ilin g s w e re b e lo w p re v io u sly e x is tin g m a rk e t quo ta tio n s . P ric e ad van ce s w e re p e rm itte d , h o w e ve r, fo r som e o th e r co m m o d itie s u n d e r F e d e ra l c o n tro l. P ric e s o f co tto n an d o f fo o d stu ffs in c re a se d fu rth e r in th e firs t h a lf o f S e p te m b e r, b u t su b se q u e n tly d e c lin e d , o w in g p a rtly to se aso n al in flu e n c e s. O n T h u rs d a y , C o n tin u e d o n p a g e 58 M o n t h l y R e v ie w o f t h e F e d e r a l R e s e r v e B a n k o f A t l a n t a f o r O c t o b e r 1 9 4 1 a s a w h o le , it is T h e M o n e y a n d C r e d it S it u a t io n c e r t a in ly a la r g e U . S. T re a s u ry r e c e ip t s and C ontinued, fr o m page 53 ► N ot o n ly b a n k s in t h is D is t r ic t a s a p e rc e n ta g e o f th e lo a n s a n d in v e s t re c e n t y e a r s , b u t t o t a l c h e c k m e n ts o f a l l m e m b e r b a n k s in to in d iv id u a l a c c o u n ts ) th e S ix t h th e U n it e d S t a t e s . t h is c h a r t t h a t th e re s e r v e s o f m e m b e r D is t r ic t h a v e in d is b u rs e m e n ts , re c e n t m o n th s b e e n in h ave bank a g r e a t ly a c c e le r a te d p o r t in g d e p o s its been h a v e a ls o ra te d u r in g m e m b e r b a n k s in th e S ix t h th e th e f ir s t n in e m o n th s o f 1 9 4 0 . T h is It as a is w h o le , a s w e ll a s a ls o c le a r d e v e lo p m e n t s in c e e x p a n s io n of la t e bank th a t 1940 lo a n s an has and in c r e a s in g im p o r t a n t been th e in v e s t m e n ts in a b s o lu te fa c to r in s lo w e r in ra te t h is in w it h in v e s t m e n ts S ix t h s m a lle r e x p a n s io n of lo a n s and of D is t r ic t a s c o m p a re d w it h th e r a t e o f e x p a n s io n a t h is t h e n a t io n ; f o r , in th e D is t r ic t h a v e fo r t h a t re a s o n g a in e d re s e r v e s lin e in C h a rt N o . I I a b le re p re s e n t s th e m o v e m e n ts fig u r e M o n e y in o f a l l m e m b e r b a n k s in th e U n it e d r u p t io n t h is lin e h a s b e e n f a llin g y e a r. T h e d o tte d lin e o f m e m b e r b a n k s in b a n k r e s e r v e s in in g d u r in g in S t a t e s . W it h o u t in t e r s in c e th e b e g in n in g o f th e th e s a m e c h a r t s h o w s th e re s e r v e s th e D is t r ic t a s a p e rc e n ta g e o f m e m b e r th e n a t io n . T h is lin e h a s b e e n s t e a d ily 1 9 4 1 . In th e f ir s t n in e m o n th s o f 1 9 4 1 r is m em ber b a n k r e s e r v e s in th e A t la n t a D is t r ic t in c r e a s e d 2 0 .2 p e r c e n t. O v e r th e s a m e p e r io d , m e m b e r b a n k r e s e r v e s in th e c o u n t r y W h ile th e s lo w e r r a t e m e n ts in th e S ix t h n o t th e w h o le o f e x p a n s io n o f lo a n s a n d D is t r ic t , a s c o m p a re d w it h e x p la n a t io n r e s e r v e b a la n c e s in o f th e m em ber b an ks F e d e ra l R e s e rv e in c r e a s e $ 1 7 5 .5 m o re r a p id t h is D is t r ic t c o m p a re d in v e s t th e n a t io n , is w it h in c r e a s e of th e c o u n t r y r is e in th e th e U n it e d in m oney th e in c ir c u la t io n , h a v in g w eek o f O c to b e r 2 , r is e n 1 9 4 0 , to fr o m $ 2 4 3 .0 th e w e e k o f O c to b e r 1 , 1 9 4 1 . T h is is a n in c r e a s e ► C e r t a in a s p e c ts o f th e s it u a t io n w it h b a n k c r e d it in S in c e S ta te s is B a n k o f A t la n t a ’ s is s u e r e fle c t s th e n a t io n in m illio n in in th e S ix t h re s p e c t to m o n e y a n d F e d e r a l R e s e r v e D is t r ic t a r e c le a r . 1 9 3 3 t o t a l d e p o s its , t o t a l r e s e r v e s , a n d t o t a l a s s e t s o f m em ber b an ks in th e D is t r ic t h a v e been r is in g s t e a d ily w h ile in c r e a s in g s in c e 1 9 3 3 , h a v e d o n e so a t a m u c h m o re m o d e ra te r a t e u n t il th e p a s t y e a r w h e n th e r a t e o f e x p a n s io n of lo a n s and in v e s tm e n ts a g a in a p p r o x im a te d th e ra te a s m e a s u re d b y b a n k d e b its a n d b y th e c ir c u la t in g n o te is s u e o f t h is B a n k h a v e a ls o b e e n in c r e a s in g , a n d th e w h o le p ro c e s s h a s b e e n r a p id ly a c c e le r a te d s in c e th e in c e p t io n o f th e a r m a m e n t p ro g ra m in J u n e 1 9 4 0 . B. B. LO A N S A N D IN V E ST M EN T S A N D TOTAL R E S E R V E S OF SIXTH D ISTR ICT M E M B E R B A N K S A S A P E R C E N T A G E OF L O A N S A N D IN V E ST M EN T S A N D OF TOTAL R E S E R V E S OF A LL M E M B E R B A N K S PER < 3 . SO 3 .0 0 2 .5 0 2 .0 0 1 .5 0 C A L L R E P O R T D A TES, of th e D is t r ic t C H A R T II 4 .0 0 to n e w p e a k s . L o a n s a n d in v e s tm e n ts o f th e s e b a n k s , h o w e v e r, e x p a n s io n o f t o t a l d e p o s its . M o n e y p a y m e n ts in a s a w h o le d e c lin e d 5 .6 p e r c e n t. r a p id th e c o u n t r y a s a w h o le , th e c o m p a r a t an o f 3 8 p e r c e n t. in v e s tm e n ts w a s a m o re a o ver o f th e m illio n lo a n s D is t r ic t e x p e r ie n c e d now and to ta l r a p id ly a n d a t th e f ir s t n in e m o n th s o f 1 9 4 1 c ir c u la t io n D is t r ic t m e m b e r o f th e in (d e b it s a ll- t im e h ig h o f a b o u t $ 1 0 .2 b illio n . N o te c ir c u la t io n banks as p e rc e n ta g e a re a la s t y e a r . W e e k ly r e f o r a l l w e e k ly r e p o r t in g o f t o t a l lo a n s a n d in v e s t m e n ts o f th e S ix t h a t h is o f 1 9 4 1 th a n in th e s a m e p e r io d o f 1 9 4 0 . w id e th ro u g h th e in t e r - D is t r ic t m o v e m e n t o f f u n d s . T h e s o lid th e U n it e d S t a te s b e in g 2 0 p e r c e n t h ig h e r in th e f ir s t n in e m o n th s th e D is t r ic t i t h a s a lm o s t c e r t a in ly b e e n t r u e t h a t m e m b e r b a n k s in p e r c e n ta g e w is e th a n in in p e r m o n th in c r e a s e d th e 27 c o u n try p e r c e n t in c r e a s e in r is in g p a y m e n ts c r e a s in g r e la t iv e ly to t o t a l r e s e r v e s o f a l l m e m b e r b a n k s in a m o u n t. in flu e n c e s it u a t io n im p o r t a n t ly . b e r b a n k s , a n d s h o w s th e lo a n s a n d in v e s t m e n ts o f m e m b e r I t is a p p a r e n t fr o m p a r t o f th a t e x p la n a t io n . O f c o u r s e , o th e r f a c t o r s , s u c h a s th e in t e r - D is t r ic t b a la n c e o f in t h e S ix t h f e d e r a l R e s e r v e D is t r ic t b a n k s in 57 1 9 2 6 -JU N E 3 0 , 1941 58 M o n th ly R e v ie w o f th e f e d e r a l R e s e r v e S a n k o f A tla n ta f o r O c to b e r 19+ 1 R e c o n n a is s a n c e d is tr ic t S u m m a r y PER CEN T D EC R EA SE f o f B u s in e s s C o n d itio n s R a tio n a l S u m m a r y P E B C E N T IN C R E A S E o f B u s in e s s C o n d itio n s Retailjj Continued from page 55 Continued from page 56 hydro-generated power, after declining prices of these commodities w h o H il substantially in the first half of the Contracts year, increased in July following the ant June and early July rains. In August, Cotton Co: Commercial loans at member banks however, there was a drop of 16 per Pig Iron luction continued to rise during September and cent and in September a further decline the first half of October, reflecting in Of 9 per cent, and the continued de 0041 H iM " ® part defense demands. Increases were ficiency of rainfall in October has given Emploi bstantial both in New York and other rise to renewed fears of another serious ding cities. Holdings of United States power shortage. nment obligations decreased, mainBank ►The United States Department of y at banks in leading cities outside of Agriculture’s October 1 estimates of Bank Loans New York. Excess reserves of member cotton production in the six states of Demand Dep banks showed little change in this pe this District indicate a crop 168,000 bales larger than was expected a month 30 20 10 10 20 30 riod. earlier. Lack pf rainfall and continued Sixth District statistics ior Septem ber 1941 com pared U n ite d S ta te s G o v e r n m e n t high temperatures retarded weevil ac w ith Septem ber 1940. S e c u r ity M a r k e t tivity and caused rapid development of the crop except in Louisiana, where cot Following a slight decline in the first ton was damaged by excessive rains late in September. A half of September, prices of long-term Treasury partially taxfurther small decline in the estimate for Georgia was due to exempt bonds increased during the latter half of September excessive and prolonged weevil activity. On the basis of the and in the first part of October. The yield on the 2% per cent October estimates, these six states are expected to produce a bonds of 1960-65 reached a new record low of 2.01 per cent crop amounting to 3,839,000 bales. If the final figure bears in October. Prices of taxable bonds moved within a relatively out this current estimate, it will mean that this year’s crop narrow range during the period with yields slightly above previous low levels. is the smallest since that of 1923. MILLIONS OF DOLLARS 350 CHART S I X T H D I S T R I C T M III E M B E R B A N K R E S E R V E S 250 CALL REPORT DATES, 1926-1941 M ILLIONS O F DOLLARS 200 150 IO O 1927 1929 1931 1933 1935 1937 1939 1941
@FedFRASER