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Monfhlu Review ATLANTA, G E O R G IA , OCTOBER 31, 1954 In% isIssue: M o n e ta ry P o lic y in 1954 T h e R im o f t h e S a u c e r ? D is tr ic t B u s in e s s H ig h lig h t s SixtfiDiStridStatistics: C o n d itio n o f 27 M em b er Banks in Leading C itie s D ebits to Individual Dem and D eposit A cco u n ts D epartm ent S to re Sales and Inventories Instalm ent C a sh Loans Sixth ViftritfIndexes: C o n struction C o n tra cts C o tto n Consum ption D epartm ent S to re Sales and Stocks E le c tric Pow er Production Furniture S to re Sales and Stocks M anufacturing Em ploym ent 1 M anufacturing Payrolls Petroleum Production Turnover o f Dem and D eposits it W D I S T R I C T B U S I N E S S H I G H L I G H T S The drought is adversely affecting agricultural income, particularly in certain areas. In the nonagricultural segment of the District’s economy there are some indications of im provement: Nonagricultural employment has apparently stabilized. Textile production has recovered slightly. Construction remains extremely high. Bank loans are expanding as is customary at this time of year. And there are indications that merchants are adding more than seasonally to their inventories in response to a pick-up in consumer buying and anticipation of continuing improvement. Free reserves off m em ber banks continued adequate during October as both excess reserves and borrowings from the Federal Reserve Bank remained near their September levels. Nonfarm employm ent in August remained virtually unchanged from the pre ceding month and from last August. Textile activity improved during August as cotton consumption and seasonally adjusted textile employment increased significantly, although preliminary data indicate that part of this gain was lost in September. A verage w holesale prices of nonffarm commodities important in the District during September continued to show the relative stability of previous months, but prices of certain types of industrial products continued to rise. Steel operations, as a percent of capacity, between mid-September and midOctober were relatively unchanged in Birmingham but were up in the nation. Petroleum production on the coast of Louisiana and Mississippi continued to decline more than seasonally during September. Department store sa le s, seasonally adjusted, after a low September reached their high point for the year in October, well above last October. Departm ent store stocks rose more than seasonally in September after having been relatively stable during the past few months. Retailers increased their borrowings from commercial banks more in October than they did last October. Sales of durable home furnishings at department stores were strong in August • and September, bringing durable sales for the year up to those of the corresponding period last year. Commercial bank loans increased more than seasonally during September and, according to preliminary information, continued to expand in October. Interest rates on new business loans made by banks in Atlanta and New Orleans averaged slightly lower in September than they did three months earlier. Bank debits, seasonally adjusted, declined in September, but remained above the year-ago level. Crop production will be substantially below last year’s, with cotton, com, peanuts, pecans, hay, and pastures showing the greatest declines, but marketings of livestock and poultry are increasing substantially. Prices received by farm ers for most farm products are below last fall’s prices, with eggs, rice, chickens, hogs, beef cattle, milk, and corn showing the greatest declines. Cotton and peanut prices are above last fall’s levels. Increased livestock m arketings during the latter part of this year will offset part of the substantial loss in cash receipts from crop marketings. •2• M o n eta ry P olicy in 1 9 5 4 Program of Ease Affects Bank Loans, Home Values, Capital Issues Monetary conditions during the first ten months of 1954 continued to be dictated by the policy of ease adopted in the late spring and summer of 1953. Although actions taken by the Open Market Committee, the Board of Governors, and the twelve Federal R e serve Banks were relatively unspectacular during most of the year, their effect probably reduced the impact of the seventeen-month old recession. District banks and local business generally felt these effects, but they may not have easily identified them as the product of monetary policy. Bond prices h a v e in crea sed a s y ie ld s h a v e fa lle n Percent W h en to ta l lo a n s b e g a n to s ta b iliz e / All Three Reserve W eapons Used in 1954 The Reserve System has three weapons at its command which it can use to alleviate the swings in the business cycle— open market operations, reserve requirements, and the discount rate. During 1954, all three of the weapons were used in an attempt to slow the slide in economic activity and, if possible, turn it the other way. O pen m a rk e t o p e ra tio n s during the year aimed at providing banks with ample reserves to satisfy the credit demands of the economy without so flooding the money and capital markets with presumably temporary funds that the long-term requirements of savers and investors would cease to be served and users of funds would gain little advantage from a further artificial lowering of rates and superabundance of credit. During the first part of the year, pursuit of this policy meant that the System sold securities in order to offset the seasonal decline in credit demand. As the fall seasonal credit demand began to appear, the System com menced to purchase securities and between the first of September and mid-October added about three-fourths of a billion dollars to bank reserves through this route. On two different occasions since the first of the year r e s e rv e re q u ire m e n ts were reduced. In mid-June a reduction of one per centage point in reserve requirements on demand deposits of banks in New York and Chicago and one percentage point on time deposits of all banks made 600 million dollars available to banks. In late July and August, a further reduction in reserve requirements released an additional 900 million dollars, actually making neces sary open market sales of securities to prevent an unduly easy money market. Early in February and again in April, d isco u n t r a te s were reduced. The February reduction from 2 to 13A percent in the rate charged by Federal Reserve Banks lending to commercial banks was followed by an announcement that commercial banks in major cities were reducing the rate of interest charged to prime business customers. The second reduction, from 13A to IV 2 percent, however, produced no similar reaction. Commercial Banks Affected Directly Monetary policy during 1954 has been aimed at e a sin g r e s e rv e p o sitio n s of commercial banks so that lack of reserve funds did not, in itself, tend to restrict the expansion of bank credit if demand for such an expansion existed. Commercial banks in general have substantially reduced their debt to Federal Reserve Banks, and some commercial banks— principally those in smaller cities— have Loans to sm all b u sin ess a p p a r e n tly ro se Prices o f co rp o ra te stocks a lso r o se A nd n e w issu es r em a in e d in g o o d v o lu m e M il.# Jk ^ 200 15 0 A 100 50 A -A V/ w Vy aV// THREE-MONTH MOVING AVERAGE OF GROSS PROGEEOS OF COMMON AND PREFERREO STOCK ISSUES 1 l 1 1 1 1 1 t 1 1_l.-1-1_ 1 1 1 L L I 1 1 1 1 1 1 1 1 1 1 1 1 v t- i 1952 1953 1954 •3• 111 increased the amount of reserves held idle. At present, if all excess reserves of member banks were utilized, a threeto four-billion dollar increase in the volume of credit out standing would ensue. The abundance of reserves lo w e r e d th e ra te s o f e a rn in g s on n e w in v e stm e n ts. Eased reserve positions, of courses, increased the supply of bank funds available for purchases of investments, and partly as a result security prices rose and yields fell. Yields on long-term Government bonds have fallen about one-tenth since the end of 1953 and on medium-term securities about one-fifth. Treasury bill yields, however, have fallen by one-third or more. Both in the District and elsewhere member banks have begun to feel a shrinking in this source of income, causing them to cast about for other earning opportunities. A ris e in ca p ita l v a lu e s of previously purchased securi ties in bank portfolios acted to encourage shifts out of in vestments and into loans, whenever loan demands justified, at the same time that declining interest rates were acting to reduce the rate of earnings on new investments. In particular, banks in smaller cities during 1954 were prob ably encouraged to expand loans because they could sell securities at a capital gain. Banks React in Loan and Investm ent Policies Despite eased reserve positions some banks felt a reduced demand for credit by their customers, although in the Sixth District total member bank loans continued to ex pand during 1954. In other sections, however, when the volume of loans declined, commercial banks in c re a se d s e c u rity h o ld in g s by as much or slightly more than the drop in loans. As a result total bank deposits expanded in spite of a comparatively mild loan demand. The expansion of total bank deposits, approximating six billion dollars in the 12 months prior to October, in itself acted to encourage bank lending. Particularly in smaller banks the recent deposit trend is probably more important than any other single factor in determining lending policy. In 1954 loan expansion continued in banks located in smaller communities, and although cus tomer loan rates in these communities probably were not greatly different from those prevailing in 1953, in major cities b u sin e ss loan r a t e s f e ll during the year. Loan policies of commercial banks during 1954 showed changes not only in the average rate of interest charged to borrowers but also in the ty p e o f b o rro w e rs they were willing to accommodate. Here the evidence is very uncer tain. Nevertheless, if there is any association between size of loan and size of borrower, small business must have been accommodated more this year than last. There was a 10-percent increase in loans of $1,000 to $10,000 size from December 1953 to September 1954 in the face of declines in larger size loans at a sample of banks in 19 cities throughout the country reporting lending volume data by loan size. Other Institutions Similarly Affected and the improved availability of credit were probably stimulating to the economy in two ways. First, in spite of the success of the construction industry in reducing the postwar physical housing shortage, the volume of homebuilding remained extremely high in 1954. One immediate cause of high homebuilding volume has undoubtedly been eased money conditions, which have resulted in relatively s ta b le p ric e s o f n e w h o m e s. Be cause of declines in yields on market securities, the relative attractiveness of mortgages improved in 1954 and many nonbank lending institutions were encouraged to grant more favorable terms to would-be purchasers of homes. The result was an increase in the number of families able to meet credit standards of lenders and therefore able to bid for housing. In the short run, stable housing prices thus encouraged speculative building, much of which would not have materialized in a period of falling housing prices. Second, falling interest rates during most of the last half of 1953 and so far in 1954 have undoubtedly con tributed to the ris e in p ric e s o f c o rp o ra te e q u ity se c u ri tie s . Income-earning assets in general are subject to price increases in periods of falling interest rates because a fixed return is capitalized for a greater sum at a lower, rather than a higher, rate of interest and the stock market fre quently reacts in the same general manner as the markets for other income-earning assets. Rising prices in corporate equities, of course, have encouraged stock flotations and perhaps aided in maintaining a high level of corporate investment. Deterioration of security markets which has been conspicuous in previous recessions has been equally conspicuous by its absence during 1954. In a moderate recession such as the present one, mone tary policy performs a useful service by so assuring plenty of low-cost credit that particular sectors of the economy still enjoying a high demand for their product find it easy and profitable to expand production facilities. If these sectors are important enough in the total economy or if a new stimulus to expansion occurs, the decline in eco nomic activity can perhaps be reversed. During the first ten months of 1954, although no enormously important stimulus to economic expansion appeared, monetary policy has undoubtedly been successful in aiding the maintenance of high rates of activity in several major sectors of the economy. T h o m a s R. A t k in s o n T h e M o n t h ly R e v ie w is p u b l i s h e d r e g u l a r l y b y fh e R e se a rc h D e p a r tm e n t o f th e F e d e ra l R e se r v e B a n k o f A tla n ta , A tla n ta , G e o r g ia . S in g le o r m u ltip le c o p ie s m a y b e o b ta in e d fr e e o f c h a r g e u p o n r e q u e s t. A ll types of financial institutions, of course, felt the effects of an easy money policy. The reduction in interest rates . 4 . T h e R im o f th e Since mid-1954 economists have actively sought signs that the economy is once again on the upgrade. Those who trace the economy’s course by plotting economic statistics on charts have searched for the characteristic saucer-like curve which, they explain, has historically appeared in some series of economic data between recession and recov ery. Efforts to find that historic pattern have brought var ious interpretations of the current economic scene. Some observers believe the downward trend in economic activity is continuing; some believe the recession has hit bottom. Others read the charts and are convinced that the economy is climbing the rim of the saucer. The National Economy There is some evidence that the decline in national eco nomic activity has halted or— more succinctly— that it has “bottomed out.” Stability in industrial output this year at about 9 percent below the peak of 1953 tends to support this view. Unemployment, which reached a high in March of this year, has been gradually reduced and according to the latest data on insured unemployment, the decline in numbers of unemployed workers is continuing. Changes in production and employment between June 1953 and March 1954 indicate that a recession did occur and that it reached a low point, but the average of all wholesale prices and consumer prices held reasonably steady. Since spring, stable prices and output have prevented a further decline in the nation’s gross national product, which de clined in the latter part of 1953 and early 1954. Some areas of economic activity such as construction have shown great vitality through the summer. Spending by consumers at a record annual rate of 234 billion dollars in the third quarter of 1954 has also been gratifying. Another source of satisfaction is the recent quickening in some lines that had previously experienced a slowing-up in tempo. Production of primary metals, electrical equip ment, lumber products, and nondurable goods, for ex ample, started to edge up in September. And though busi ness inventories were still being reduced, the rate of reduc tion had slackened. Finally, it is worth noting that the amount of consumer instalment credit outstanding rose about 684 million dollars between March and August, fol lowing a sharp decline that began in January 1954. Increased output in some lines, improvements in the inventory situation, and consumers’ renewed use of credit could bring a further rise in general economic activity, although just now the magnitude of these forces seems in sufficient to offset reductions in business spending for durable equipment, in Federal spending, and in farm in come. The annual rate of spending on durable equipment by business firms fell about 2.4 billion dollars between the third quarter of 1953 and the second quarter of 1954. Estimates by the Department of Commerce on expendi tures of business firms indicate a cutback in such spending in the fourth quarter of 1954. Cash outlays of the Govern ment in fiscal 1955 are expected to be down an estimated S a u ce r? 2.4 billion dollars from outlays a year earlier, and the decline in farm income that started in 1951 continues. Sixth District Developm ents Economic changes in the Sixth District, like those in the nation, manifest mixed tendencies. Industrial activity has been low, but is improving slightly. Factory employment in August was 6 percent below its 1953 peak on a season ally adjusted basis, principally because of the poor per formance of the lumber and textile industries. Since spring time, manufacturing employment has gotten some support from the opening of new plants such as the Rayonier plant at Jesup, Georgia, the General Electric plant at Rome, Georgia, and the Bowaters Southern paper plant at Cal houn, Tennessee. More recently, total factory employment has risen by the normal seasonal amount. Factory payrolls have also risen but no more than seasonally. Although Factor/ Employment Not Up Much, Insured Unemployment at New Low One sign of modest industrial recovery is the September decline in insured unemployment to the lowest point of the year. Although the total number of District unemployed workers has declined recently, improvements in Chatta nooga, Knoxville, and Columbus, and nine minor areas have not yet been great enough to warrant removing those areas from the “substantial labor surplus” classification. Recall of workers in furniture, textile, construction, and cotton oil industries in Jackson, Mississippi, however, has been sufficient for a reclassification of that city. Steel M ay Be Strengthening Force but Lumber Still Somewhat W eak Another reason for hope that industrial activity in the District is at least moving into a normal seasonal upswing is the rise since late August in steel production at Birming ham, Alabama. The steel operating rate there rose from 58 percent of capacity on August 19 to 74 percent on October 14. Increased steel production has been accompanied by a gain in the region’s textile activity, as indicated by a modest rise of 4 percent in the seasonally adjusted index of cotton consumption between July and September. This rise has come after a desultory and dragging pattern of consumption during the first part of the year. Unfortunately, the District’s important lumber industry is not adding much, if any, steam to the fall upswing. Dur ing the summer, demand for southern pine increased because of a strike of lumber workers on the West Coast. That demand was met largely from inventories. Yet stocks in District states remain above year-ago levels. Despite the relatively large stocks, pine lumber prices have been fairly steady, indicating that demand has not weakened. Even so, not much increase in lumber production is likely until stocks are further reduced or demand picks up sharply. Construction Likely to Continue Strong Construction activity has been a strong sustaining force in the District as well as in the nation, and seems likely to •5• continue in that role. Construction contracts awarded for residential and nonresidential building increased during August and were greater than awards a year ago. This gain adds to the record value of contracts awarded in the District during early 1954 and helps to assure a high rate of construction through the fall and early winter months. Consumer Spending Shows Seasonal Rise A recovery in consumer spending has also been a sup port for District business this year. New automobile sales in the first part of the year, for example, were higher than in 1953, with May and June sales especially heavy. Con tinued high department and furniture stores sales since the recession low point in March also indicate that consumers have been spending more freely. In most months since March, major appliance and floor covering sales have been running ahead of last year. Consumers’ changed pattern of spending is also reflected in their use of credit. Consumers decreased their indebted ness to banks between October 1953 and May of this year. MANUFACTURING EMPLOYMENT SINCE 1 9 5 2 1 9 4 7 -4 9 = 1 0 0 , S e a s o n a lly A d ju s te d P tfC ftftt 120 _ G E O R G IA In June, however, they began borrowing more heavily, principally to buy automobiles and to pay other bills. Since July they have been borrowing more from banks to buy various types of hard goods. Gains in most types of loans since June, however, have been less than seasonal. There is little evidence that the free spending stream of many of the District’s urban consumers is likely to dry up this fall. On the other hand, there is severe distress in rural areas of the District where extreme drought persists. Farm cash receipts in the region will likely be off about a tenth from 1953 receipts. Because of lower incomes, farm families will unquestionably reduce their spending and avoid new debt as much as possible. For that reason there is small likelihood that total District consumer spending will rise more than seasonally this fall. Business Spending and Bank Loans Lag Although total consumer spending shows signs of rising seasonally, business spending is tending to be slack. Busi nessmen’s plans for plant construction and expansion, for instance, have apparently been altered in recent months. In the first half of 1954 the number of announcements for new and expanded plants was unchanged from recent com parable periods. In the third quarter of this year, however, announcements were small in number, compared with like months in former years. Nor is business spending for inven tories likely to be spectacular. District wholesale invento ries this year have been slightly higher than in 1953, with the greatest concentration in automobile, appliance, and refrigeration equipment lines. Department stores and furni ture stores reduced their inventories significantly earlier in the year. There has been a pick-up in their new orders, however, apparently because the gain in sales since early summer has eaten into their mid-year stocks sufficiently to stimulate reordering. But such inventory replenishment is unlikely to cause much of a rise in national production. Trends in District bank loans fail to show that the region’s economy is in a marked upswing. In fact, bank loans indicate that the increase in business activity has been no greater than would ordinarily be expected at this time of the year. Total loans at selected banks in the District have been well above 1953 levels during most of the year and since August have risen in a seasonal manner. Since District banks currently have very large excess reserves, compared with 1952 and 1953, there is little reason to expect that a shortage of funds will curtail bank loans and therefore bring about a slackening in business activity. MO io o Saucer Shallow and Broad Ito TEN N ESSEE HO IOO I .. i;,,,,1 .. i,,,j .. I , m2 „ i,,, ,t.. I.. 1953 1954 Business activity in the District and the nation remains high and evidently there has been a hesitant recovery from the 1953 recession. The hope for a further advance in economic activity rests largely on the building boom and consumers’ apparent willingness and ability to spend. There is, however, a counter-balancing slackness in business and Government expenditures and in farm income. Failure of District business to show more than seasonal improvement so far this year suggests that a substantial revival in eco nomic activity has not begun. This creates suspicion that the nation’s current economic saucer is shallow but broad. A rthur H . K antner Sixth District Statistics Instalment Cash Loans Debits to Individual Demand Deposit Accounts (In Thousands of Dollars) No. of Lenders Reporting Lender Federal credit unions . State credit unions . . Industrial banks . . . . Industrial loan companies Small loan companies . Commercial banks . . . . . 37 IS S . . . . . . 11 33 33 Volume Percent Change Sept. 1954 from Aug. Sept. Outstandings Percent Change Sept. 1954 from Aug. Sept. 1954 1953 1954 1953 Place —3 —9 +3 —7 —5 —3 +10 +2 —2 +1 +1 —0 +0 + 15 —3 —3 +3 +0 — 1 ALABAMA 31,542 Anniston . . . . Birmingham . . . 462,562 19,952 24,075 . 183,714 Montgomery . . . 110,553 Tuscaloosa* . . . 35,242 FLO RIDA Jacksonville . . . 468,106 Miami . . . . . 394,549 Greater Miami* . . 614,835 86,056 Pensacola . . . . 53,615 S t. Petersburg . . 97,318 188,423 West Palm Beach* 50,103 GEORGIA . 40,922 Atlanta . . . . 1,296,034 . 84,073 Brunswick . . . . 13,119 Columbus . . . . 83,914 + 19 +3 +9 +3 —1 Condition of 2 7 Member Banks in Leading Cities (In Thousands of Dollars) Item__________________________ Oct. 20 1954 Loans and investments— T o t a l ...................................... 3,186,832 Loans— N e t.................................. 1,302,970 Loans— G r o s s ........................... 1,324,786 Commercial, industrial, 749,496 and agricultural loans. Loans to brokers and 14,769 dealers in securities . Other loans for pur chasing or carrying 32,475 secu rities........................... 99,652 Real estate loans . . . . 7,167 Loans to banks . . . . 421,227 Other loans ........................... 1,883,862 Investments— Total . . . . Bills, certificates, and notes .......................... 710,128 U. S. bonds .......................... 884,791 288,943 Other securities . . . . Reserve with F. R. Bank . 534,173 Cash in vault ........................... 46,079 Balances with domestic banks ...................................... 244,997 Demand deposits adjusted . 2,269,123 610,044 Time deposits........................... U. S. Gov’t deposits . . . 133,881 Deposits of domestic banks 709,985 Borrow in gs................................ 12,400 Sept. 15 1954 3,123,656 1,258,327 1,280,148 Oct. 21 1953 2,939,882 1,273,661 1,295,287 Percent Change Oct. 2 0,1 9 5 4 , from Sept. 15 Oct. 21 1954 1953 +2 +4 +3 +8 +2 +2 716,558 744,836 +5 +1 15,513 13,690 —5 +8 33,391 95,264 7,000 412,422 1,865,329 37,519 89,963 6,314 402,965 —3 +5 1 , 666,221 — 13 + 11 + 14 +5 + 13 702,342 882,810 280,177 490,416 46,610 762,877 636,212 267,132 505,769 45,978 271,865 2,254,534 604,016 71,500 723,561 5,000 225,319 2,139,505 577,163 64,704 648,225 36,400 +2 +2 +1 +1 +0 +3 +9 —1 —7 + 39 +8 +6 +0 —10 +1 +1 +9 —2 + 10 —66 + 87 * +6 +6 * *100 percent or over. Departm ent Store Sales and Inventories* _________ Percent Change______________________ Sales Inventories 1954 from 9 m0nths Sept. 3 0 ,1 9 5 4 , from Sept. 1954 from Aug. 31 Sept. 30 1953 1953 1954 1953 +0 —4 +9 —3 +3 —4 + 11 +1 —5 —3 +4 —2 +6 +1 +1 +i +2 + 13 —5 +1 +3 +3 +1 +1 +2 +1 Sept. Aug. 1954 Place ALABAMA ................................. + 10 Birmingham............................ + 20 —9 Mobile....................................... —4 Montgomery........................... —6 FLO RIDA ................................. —7 Jacksonville........................... M ia m i...................................... —S —1 O r la n d o ................................ S t. Ptrsbg-Tampa Area . —1 —3 —1 St. Petersburg . . . . +0 —2 +i 2 +3 +1 T a m p a................................ —5 —3 +1 + 6 + 2 —1 + 9 — 5 GEORGIA ........................... +5 +3 + 10 —1 Atlanta**................................. +1 —4 —2 A u g u s ta ................................. + 10 +2 +0 +0 +0 —20 Columbus................................. —1 1 —9 +5 —5 M acon...................................... + 10 —9 —9 R o m e * * ................................ + 15 —4 Savannah**............................ + 15 + 11 L O U I S I A N A ........................... —4 —1 +2 +7 +3 Baton Rouge ...................... —2 —0 +9 +3 +8 —4 New O rle a n s...................... +3 +6 —5 +1 M ISSISSIPPI ............................ —4 +7 —3 + 10 —1 Jackson ................................ + 1 0 —1 —3 —3 + 11 M e rid ia n **........................... —4 +9 — 13 —1 —7 +7 +9 TEN N ESSEE ........................... +1 +4 —2 —10 —6 — 14 Bristol (Tenn. & V a .)* * Bristol-Kingsport—12 —S Johnson C ity** . . . +1 —1 —2 Chattanooga .......................... + 12 +4 + i3 +4 Knoxville................................. +9 +9 Nashville.................................. — 13 +3 —3 —4 +8 D ISTRIC T ................................ + 8 —2 —1 +3 +1 ^Reporting stores account for over 90 percent of total District department store sales. * * ln order to permit publication of figures for this city, a special sample has been constructed that is not confined exclusively to department stores. Figures for non department stores, however, are not used in computing the District percent changes. Percent Change September 1954 Gainesville* Macon . . . . . . . . 35,529 90,598 August 1954 Sept. 1954 from Year-to-date Sept. 9 months 1954 Aug. September from 1953 1954 1953 1953 29,230 414,089 19,131 21,447 186,502 101,730 32,524 31,469 432,097 19,762 24,616 184,728 103,815 36,263 509,965 400,912 600,973 82,668 55,153 89,300 179,071 53,362 38,677 1,263,840 77,623 13,768 76,506 3,975 29,965 12,691 85,255 10,674 30,115 118,414 36,474 +8 + 12 +4 + 12 +0 +7 +1 +9 —2 —1 +6 +8 —3 395,261 346,136 513,449 77,298 53,326 81,602 161,807 48,322 —8 —2 +2 + 18 + 14 38,462 1,358,966 87,271 11,475 77,952 5,608 30,127 14,469 78,339 9,990 32,062 129,663 18,485 Rome* . . . . . 32,397 Savannah . . . . 121,193 Valdosta . . . . 20,332 LOUISIANA Alexandria* . . . 47,962 45,655 43,304 Baton Rouge . . . 144,380 129,192 126,018 Lake Charles . . . 60,417 64,570 50,988 New Orleans . . . 986,565 973,838 948,636 M ISSISSIPPI Hattiesburg . . . 21,686 20,981 20,639 Jackson . . . . . 158,692 164,273 154,106 Meridian . . . . 29,881 26,132 33,790 Vicksburg . . . . 16,549 13,970 16,706 TEN N ESSEE Chattanooga . . . 212,781 205,914 208,032 Knoxville . . . . 152,678 150,691 166,590 Nashville . . . . 445,330 472,365 436,961 SIXTH D ISTRIC T 32 Cities . . . 6,116,357 6,036,330 5,890,594 UNITED STATES 345 Cities . 149,907,000151,510,000 147,699,000 —2 —3 +3 +5 —6 +5 +4 +1 + 19 + 16 +4 + 11 + 10 + 11 +5 +2 +9 +6 +3 +6 +6 —0 +3 —5 —4 + 14 +8 —4 + 18 —3 + 16 + 14 +1 —7 + 10 +4 —3 +9 +5 —6 +8 —5 + 10 +35 + 19 + 10 +6 +7 +8 +2 — 44 +5 + 12 + 20 + 11 +1 +4 —6 +7 —1 —7 + 14 —6 +3 +3 +4 —4 + 12 +6 +3 + 11 —6 +1 + 15 + 18 +4 +3 —3 + 14 + 18 —12 —1 — 14 +3 +1 —1 —6 +2 —8 +2 +1 +4 +3 —1 +1 +7 +6 +3 +2 —2 +5 +3 *Not included in Sixth District total. B a n k A n n o u n c e m e n ts T h e F e d e r a l R e s e r v e S y s te m w e lc o m e d tw o n e w m e m b e r s in O c to b e r . O n e c a m e a b o u t th r o u g h th e c o n v e r s io n o f th e I n d u s tr ia l S a v in g s B a n k o f M ia m i in to th e In d u s tr ia l N a tio n a l B a n k o f M ia m i, M ia m i, F lo r id a , o n O c to b e r 1. T h e o fficers o f th is b a n k in c lu d e L e o n a r d L . A b e s s , P re s id e n t; M ic h a e l J. F ra n c o , V ic e P re s id e n t a n d A s s is ta n t to th e P re s id e n t; R o y A . P e rr y , E x e c u tiv e V ic e P re s id e n t; a n d M a r y B . M itc h e ll, C a sh ie r. V ic e P re s id e n ts in c lu d e H . H . M e a d o r , a n d M a r ie G . W h a le r. A s s is ta n t V ic e P re s id e n ts a re W . J. D a n n e n h a u e r , R . T . P a ris, a n d H a r r y M . B a r k lo w . A s s is ta n t C a sh ie rs a re A n n a M . A m b le r , W . B . N e ls o n , a n d A lla n T . A b e s s , Jr. T h e b a n k 's c a p ita l s to c k to ta ls $ 6 5 0 ,0 0 0 a n d s u r p lu s a n d u n d iv id e d p ro fits , $ 1 ,0 7 8 ,0 0 0 . T h e F ir s t N a tio n a l B a n k o f D u n e d in , D u n e d in , F lo rid a , c o n v e r te d f r o m a sta te b a n k to a N a tio n a l b a n k in g a sso cia tio n w ith m e m b e r s h ip in th e F e d e r a l R e s e r v e S y s te m o n O c to b e r 20. W . V . R e g is te r is P r e s id e n t, G . W . H a m m o c k is V ic e P re s id e n t, a n d R a y m o n d J. B o lle s is C a sh ier. F lo y d H . B e a g le s , T h e lm a R . C h a lk , a n d F r e d C h a s e a re A s s is ta n t C a sh iers, a n d S . W ilb o r E d g e c o m b e is A u d ito r . T h e c a p ita l s to c k a m o u n ts to $ 2 0 0 ,0 0 0 a n d s u r p lu s a n d u n d iv id e d p r o fits to o v e r $ 2 5 0 ,0 0 0 . • 7 • —1 —5 +4 S ix t h UNADJUSTED District T o t a l...................... A la b a m a ........................... Flo rid a................................. Georgia................................ Lo uisiana........................... M is s is s ip p i...................... Tennessee............................ SEASONALLY ADJUSTED District T o t a l...................... A la b a m a ........................... Flo rid a................................. Georgia................................ Lo u isian a........................... M is s is s ip p i...................... Tennessee............................ D is t r ic t In d e x e s Manufacturing Employment 1 9 4 7 -4 9 = 100 Manufacturing Cotton Payrolls Consum ption** Aug. 1954 Aug. 1954 July 1954 106 108 107 98 124 109 104r 107 110 110 109 109 109 10 1 124 112 10 1 100 134 132r 111 111 105 107 109 105r 108 Aug. 1953 July 1954 Aug. 1953 115 107r 124 118r 113r 113 120 r 149 134 170 148 149 160 153 145r 128r 167r 142r 150 155r 150r 158r 140r 164 162r 157r 163 166r 115 106r 133 117r lllr 150 134 185 150 148 158 154 151r 131 183r 148r 148r 158r 152r 159r 140r 178 164r 155r 161 167r 112 111 119r Sept. 1954 Aug. 1954 Sept. 1953 93 93 93 95 103 94 9i 104 D ISTRIC T S A L E S * . . . . A tla n ta ^ ................................. Baton R o u g e ...................... Birmingham............................ Chattanooga........................... J a c k s o n ................................ Jacksonville............................ Knoxville................................. M acon...................................... M ia m i...................................... N ashville................................. New O rle a n s ...................... St. Ptrsbg-Tampa Area . Tam p a...................................... DISTRIC T STOCKS* . ■ . 121p 12Sp 107 113 117 108 100 130 116 136 106 123p 127 114 143p 131 122 114 113 124 110 117 130 129 156 113 134 142 131 136 119r 123 108 110 HSr lO lr 99 119 131r 133r llO r 120 129r 118 146r 108 95 114 104 92 96 101 115 125 102 101 110 98 102 119 112 117 103 124 115 110 136 • B ranch B ank C itie s mm D istric t B o u n d a ries ^ B ranch T e rrito ry B o u n d a ries B o a rd o f G o v e rn o rs o f th e F e d e ra l R e se r v e S y s te m Aug. 1954 Sept. 1953 124 236 188 310 168 175 171 233 259 142 178 169 167 183 175 237 103 149 Sept. 1954 95p 98 105 94 p 102 Aug. 1954 Sept. 1953 100 111 98 108 103 107r 96 107 100 99 77p 80r 84 92p 96 106r 107r 91r 107r 95 96r 97r lO lr 99r 74r 82r 99 102 76p Other District Indexes 122r 132 117 122 130r 114r 98 123 145r 109r 114r 120 117 112 151r that is not confined exclusively to department stores. Figures for non-department stores, however, are not used in computing the District index. *For Sixth District area only. Other totals for entire six states. **D aily average basis. Sources: Mfg. emp. and payrolls, state depts. of labor; cotton consumption, U. S. Bureau Census; construction contracts, F. W. Dodge Corp.; furn. sales, dept, store sales, turnover of dem. dep., FRB Atlanta; petrol, prod., U. S. Bureau of Mines; elec. power prod., Fed. Power Comm. Indexes calculated by this Bank. O R e se r v e Bank C itie s Sept. 1954 95p __________ Unadjusted________ Sept. Aug. Sept. 1954 1954 1953 123p 137p 115 125 129 112 98 135 129 112 110 123p 116 109 147p Furniture Store Sales * / * * 87 1 To permit publication of figures for this city, a special sample has been constructed — 100 103 91 Department Store Sales and Stocks** __________ Adjusted_________ Sept. Aug. Sept. ___________________________________1954 1954 1953 Construction Contracts Sept. 1954 Construction contracts*. . . Residential................................. O th er............................................ Petrol, prod, in Coastal Louisiana and Mississippi* Furniture store stocks* . . . Turnover of demand deposits* 10 leading cities . . . . Outside 10 leading cities . Adjusted Aug. 1954 128 109 19.9 21.3 17.1 Aug. 1954 130 106 21.7 24.0 17.5 July 1954 139 124 142 139 124 146 110 110 84 144 93 91 169 84 144 93 Sept. 1953 146r 125 19.2 20.8 15.8 Aug. 1953 Elec. power prod., total** . . Mfg. emp. by type C h e m ic a ls................................ Fabricated metals . . . . Lbr., wood prod., furn. & fix. Paper and allied prod. . . Primary m e ta ls ...................... Trans, equip.............................. r Revised p Preliminary n.a. Not Available 88 172 145r 123r 168r 109r 90r 144r lO lr 98r 181r Sept. 1954 Unadjusted Aug. 1954 206 191 218 210 r 210 r 210 r 211 127 109 20.3 21.5 17.1 Aug. 1954 n.a. 130 103 144 125 19.6 16.6 July 1954 15.8 Aug. 1953 188 140 120 140 111 85 144 93 91 162 20.2 21.6 210 136 119 138 107 84 142 92 87 167 Sept. 1953 187 168 21.0 147r 120 r 165r lllr 91r 144r lO lr 99 174r
@FedFRASER