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Moiitliljj Review ATLANTA, GEORGIA, OCTOBER 31, 1955 J n % is ls s u e : M ore B u s in e s s D is c o u n t T hrough th e W in d o w F u r t h e r E x p a n s i o n in T h ird Q u a r t e r D is t r ic t B u s i n e s s H i g h l i g h t s S ix td D iS tr id S ta tis tic s : C o n d i t i o n o f 2 7 M e m b e r B a n k s in L e a d i n g C i t i e s D e b its t o I n d iv id u a l D e m a n d D e p o s it A c c o u n t ^ D e p a r tm e n t S to r e S a le s a n d I n v e n to r ie s I n s ta lm e n t C a s h L o a n s R e t a i l F u r n itu r e S t o r e O p e r a t i o n s W h o le s a le S a le s a n d I n v e n to r ie s S ix t h V iS tr id In d e x e s : C o n s tr u c tio n C o n tr a c ts C o t to n C o n s u m p tio n D e p a r tm e n t S to r e S a le s a n d S to c k s E le c tr ic P o w e r P r o d u c tio n F u r n itu r e S t o r e S a l e s a n d S t o c k s M a n u fa c tu r in g E m p lo y m e n t M a n u fa c tu r in g P a y r o lls N o n fa rm E m p lo y m e n t P e tr o le u m P r o d u c tio n T u rn o ver o f D e m a n d D e p o s its D IS T R I C T B U S IN E S S H I G H L I G H T S G re a te r-th a n -s e a s o n a l rises in m o s t in d ic a to rs c o n tin u e to c h a ra c te riz e D is t r ic t b u sin e ss. C o n s u m e rs ste p p e d u p th e ir s p e n d in g b y s u p p le m e n tin g h ig h e r in c o m e s w ith in c re a s e d u se o f c re d it a n d re d u c e d rates o f s a v in g . S p e n d in g fo r d u ra b le s a t d e p a rtm e n t sto re s a n d fo r n e w c a rs in c re a s e d s u b s ta n tia lly , a lth o u g h b a n k d e b its d e c lin e d . F a r m in c o m e ro se , a n d b a n k lo a n s sh o w e d a d d itio n a l g a in s . N o n fa r m e m p lo y m e n t fa ile d to g a in , h o w e v e r, a n d re s id e n tia l c o n tra c t a w a rd s fe ll b e lo w y e a r-a g o le v e ls. Department store sales, seasonally adjusted, increased sharply in October; dur able goods sales gained more rapidly than nondurables. The growing importance of credit buying is indicated by increased instalment sales at department stores and a further rise in instalment credit at commercial banks. Income payments to Sixth District residents in the third quarter were the highest on record. Consumer savings, seasonally adjusted, declined during September as indicated by time deposits, savings and loan shares, and ordinary life insurance sales. New car registrations in August advanced sharply from a year ago and apparently rose further in September. Farm income is greater than it was a year ago; production volume is up, and prices of important products are either above or near last year’s. Demand deposits at banks in rural areas were above a year ago in all states except Tennessee; Florida and Mississippi banks registered large gains. Production of milk, eggs, broilers, hogs, and beef is greater than a year ago. Prices of eggs, broilers, and beef are higher; the average price of all milk is about the same; but hog prices are off. Prices of livestock feed have declined further and are well under levels at this time last year. Interest rates on new business loans at banks in major cities averaged slightly higher in September than in June. Business, real estate, and consumer loans increased further in September and more than offset declines in security loans. Total deposits, seasonally adjusted, at member banks decreased somewhat during September, reflecting declines in all types except interbank deposits. Bank debits, seasonally adjusted, declined during September, but remained well above September 1954. Nonfarm employment, after seasonal adjustment, during August was unchanged from the previous month. Residential construction awards fell sharply during September and for the first time this year were below a year ago. Insured unemployment declined slightly more than is customary during September. Steel operations in Birmingham during early October increased slightly from mid-September and were practically at full capacity. Excess reserves at member banks in October held near the September level; borrowing from the Federal Reserve Bank declined slightly, leaving free reserves somewhat higher than in the previous month. 2 M o r e B u s in e s s T h r o u g h th e DISTRICT MEMBER B A N K D ISC O U N T IN G D is c o u n t W in d o w Sep tem ber 1955 Commercial banks are borrowing more of their re serves from Federal Reserve Banks now than they were in the spring and summer. A greater use of the “discount window,” together with two recent increases in the dis count rate, has called attention once more to direct bor rowing as one means that member banks have of getting reserve funds. Why banks borrow and what a greater volume of borrowing means are therefore timely topics. Generally, borrowing has been on the upgrade in both the Sixth District and the nation since September 1954. Borrowing is low when banks have plenty of excess reserves, as they do in a period of “active ease,” or when the Federal makes open market purchases to supply re serves at about the rate they are needed. But when credit expands at a too-rapid rate and the Federal Reserve Sys tem cuts down on the reserve supplies through open mar ket operations, individual banks that get pinched for funds come in to the Federal’s discount window for reserves. Usually, the big increases in borrowing come because the banks that have beaten a path to the discount window borrow more and not because more banks borrow. Most banks do not borrow. To make more loans they wait for deposits to rise or for old loans to mature. Some of them sell investments if the new loans will mean more earnings or if they want to take care of regular customers. But when banks that do not have excess reserves find their deposits declining or discover a strong demand for loans, they can get an advance on Government securities from their Reserve Bank. Alternatively, banks hard pressed for reserve funds can discount eligible short-term loans with the Federal. Lately most borrowing has been on Govern ments, but just recently one District bank began to borrow on “eligible paper”—notes of its customers. In the Sixth Federal Reserve District, only 35 of the 378 member banks borrowed during September. Nevertheless, the amount of discounts and advances by the Federal Reserve Bank of Atlanta to these 35 banks averaged 62 million dollars each day during the month. The bigger banks in major District cities such as Atlanta, Birmingham, Chattanooga, Jacksonville, Knoxville, Nashville, Miami, Mobile, New Orleans, and Savannah borrowed over fourfifths of the total amount. Why did these major city banks borrow? Any banker will tell you he only borrows to replenish his reserve account. That isn’t the whole story though, for what hap pens to a bank’s deposits, loans, and investments pretty much determines whether the bank needs more or less reserves. To find out why these banks borrowed compare them with major city banks in the Sixth District that did not borrow. During September, a greater percentage of the borrowing banks increased their loans, sold their invest ments, and gained deposits than did banks that were not borrowers. The big difference, however, was in the per centage of the two groups expanding their loan portfolio. M o s t B a n k s D id n 't B o r r o w 95% DIDN'T 55% DIDN'T 45% DID 5 % DID MAJOR CITIES SMALL CITIES In M a j o r C i t i e s B o r r o w i n g B a n k s differed from banks that did not borrow in that proportionately more of them . . . | 9 4 % of Borrowers Increased Loans 73% of Nonborrowers \ [ 83% of Borrowers Sold Investments 77% of Nonborrowers |^0% ^or^orrowe rs Gained Deposits J^S^^jofJNon bo rrowe rs In S m a l l C i t i e s B o r r o w i n g B a n k s differed from banks that did not borrow in that proportionately more of them . . . 71% of Borrowers | 65% of Nonborrowers Increased Loans 53% of Borrowers Sold Investments 45% of Nonborrowers 59% of Borrowers Lost Deposits But 3 Loss of deposits is the most important cause of bor rowing by banks in less populated centers. True, the banks that did borrow in September differed from those that did not in that more of them increased loans and sold invest ments but the biggest difference between the two groups of small banks was in the higher proportion of borrowing banks that suffered a deposit decline. Most banks in small cities do not borrow; only about one in twenty were “into the Federal” during September. Individual banks that need reserves don’t necessarily have to borrow from the Federal to meet a deposit drain or to increase loans. Many large banks buy and sell excess reserves, or Federal funds, in daily transactions with major New York and Chicago banks and thus adjust their reserve positions. Even more common for banks that can foresee a continued need for additional reserves is the sale of invest ments, principally Government securities. Sometimes both borrowing and sale of investments are required. The pro portion of borrowing banks, in large and small cities, that sold investments during September was greater than the proportion of nonborrowing banks selling investments. Borrowing banks had fewer short-term Govern ment securities than banks that did not borrow. This was a deeper reason for borrowing, as only short-terms could be liquidated with little or no loss. For example, only 2 percent of the Government securities held by borrowing banks in ten major District cities were in easily liquidated Treasury Bills on June 30, the last date for which figures are available. This compares with 11 percent of Govern ment securities in Bills for the major city banks that did not borrow in September. Small city banks that borrowed also had a smaller share of their Governments in short term securities than did the nonborrowing country banks. Borrowing is a privilege, not a right. Loan applica tions are carefully scrutinized at Reserve Banks, and the operations of borrowing banks are looked over carefully. Evidence of lending or investing for speculative purposes or over-reliance on borrowed money leads to a request that the borrowing bank repay the loan to Federal Reserve. When a bank really needs money to meet the critical needs of its local community, however, Reserve Banks willingly supply the necessary amounts. What’s the significance of more borrowing? First, reserves immediately get to banks that need them most. This is not always the case when the Federal supplies reserves to the banking system through purchases of Gov ernment securities, because banks selling securities are not always those with the greatest credit demand. Sixth District member banks this year apparently have relied more on borrowing from the Federal Reserve than have banks throughout the nation. For instance, so far this year Sixth District banks have obtained 4.8 percent of their reserves through borrowing, in comparison with 2.7 percent for all member banks. At least part of the heavier reliance on borrowing seems attributable to greater loan expansion in the Sixth District than in the nation this year. Increased cost of business loans to private borrowers also goes along with increased borrowing by commercial banks. For one thing, this increased borrowing generally comes at a time when the demand for credit is strong. Banks can then push up their charges on loans because the market will bear it and this helps ration credit. Also the Federal Reserve Banks, following a restrictive monetary policy, increase their discount rates—the cost on their loans to commercial banks. Between the first two weeks of June and the first two weeks of September, large banks in Atlanta and New Or leans that report interest rates on their new business loans raised their rates slightly. Most affected were the business firms that were borrowers of large amounts ($ 200,000 and over). Small borrowers found rates down a little from June, but by now they are probably feeling higher rates also. Third, most bankers don’t like to have their insti tutions in debt and try to get out at the earliest oppor tunity. This is hard to do when credit is tight because de posits often do not rise as fast as when credit is easy. Also security prices are depressed, making sales of investments a losing business. Bank indebtedness itself puts a crimp into some bankers’ thoughts of loan expansion. This is a see-saw affair with loan expansion leading to borrowing from the Federal and with larger indebtedness to the cen tral bank making bankers less willing to pick up new loans. The result usually is that not-so-good customers get their loan requests pared down or politely refused and the best customers still get accommodated although at higher rates. Conclusion Borrowing from the Federal Reserve is the safety-valve that prevents individual banks from getting pinched too tightly by monetary policy or adverse local economic conditions. It is also a useful device to get mem ber banks to slow up a bit on lending and raise their rates. The volume of borrowing is a pretty good indicator of credit supply and demand conditions and central bank policy. T h o m a s R. A t k i n s o n Bank Announcements On October 21 the National Bank of Commerce in Jefferson Parish, Jefferson Parish, Louisiana, opened for business as a member of the Federal Reserve Sys tem. The bank’s officers are Dale Graham, President; J. Wensles Parra, Executive Vice President; Frances M. Leguenec, Vice President and Cashier; R. M. Walmsley, III, and Joseph S. Delaney, Vice Presidents; Frank A . Greco, Assistant Vice President; and Numa J. Barrois, Harry E. Woods, and Edward Smira, A s sistant Cashiers. Capital stock amounts to $600,000 and surplus, $250,000. The Key West State Bank, Key West, Florida, opened for business October 29 as a nonmember, par remitting bank. Its officers are Howard E. Wilson, President; C. L. Gardner, Executive Vice President; and John M. Koenig, Vice President and Cashier. The capital totals $370,400 and surplus and undivided profits, $129,640. Another new nonmember, par remitting bank— the Tuscaloosa Bank, Tuscaloosa, Alabama— opened for business October 31. Officers of this bank are A . M. Grimsley, Jr., President; James F. Hunt, Executive Vice President and Cashier; and D. W. Stanford, Assistant Cashier. It has capital of $160,000 and surplus and undivided profits of $40,000. 4 F u rth e r E x p a n s io n in T h ir d Q u a rte r Business in the Sixth District became more spirited during the third quarter of 1955. Personal income, seasonally adjusted, was up slightly after setting a new record in the first quarter and breaking it in the second. All major sec tors of the economy expanded, with manufacturing, which had lagged during the first part of the recovery, accounting for the principal share of income growth. The primary and fabricated metals, paper, and trans portation equipment industries were responsible for push ing total manufacturing employment almost up to the peak of 1953 and payrolls considerably above that point; the District’s principal industries—textiles, lumber, and food— contributed little to the boom. Consumers were spending more than ever before; few persons were unemployed by any comparative standards; construction continued active, although contracts awarded declined. The farm situation was perhaps slightly better than a year ago. In one respect the story is the same in each District state—continued income growth—but it is a story with variations, depending upon the basic economic structure of each state. A la b a m a Alabama’s economy responded to heavy de mands for steel and other metal products. In July, before a strike in August pushed employment down, total manu facturing employment (seasonally adjusted) was 2 percent above second-quarter averages and 6 percent above a year earlier. Wage hikes, particularly in the primary metals field, pushed weekly paychecks for primary metals workers up to $86.64 in July 1955 from $75.83 in July 1954. By September 1955 the apparent effects of the steel strike had faded. Steel operations in the Birmingham area, down to almost one-fourth of capacity in early August, are now running at almost full capacity. Insured unemploy ment, up in July and early August because of strikes and related effects, slid below June levels in September. Alabama farmers will apparently enjoy a better harvest than last year. The 1955 estimated output of peanuts and tobacco and soybeans, for example, is much higher than in 1954, when production was adversely affected by the drought. Favorable weather for growing and harvesting this year also raised estimated cotton output. Consumer spending in the state was high in the third quarter, with new car sales, as elsewhere in the District, up substantially. Indeed, the August 55-percent increase in new car registrations was above the District average. F lo r id a Less dependent upon manufacturing for its in come than most other states in the District, Florida experi enced a growth in income from trade and service activities, government employment, transportation, public utilities, and communication, and construction. Lacking many of the heavy and rapidly expanding types of manufacturing, Florida’s manufacturing employment showed only modest gains over a year ago. Total nonfarm employment increased about 4 percent from August 1954 to August 1955. Increased farm receipts supplemented the larger urban payrolls. Cash receipts from marketing crops in the first half of 1955, for example, were 8 percent greater than receipts in the like period a year ago, largely because of greater income from citrus. Also, output from the late summer vegetable crop was up and prices were higher. Tobacco and peanuts also brought more income this year. Spending of Floridians in the third quarter apparently was well above last year’s. Checkbook activity, measured by bank debits, was high, and spending has moved at an especially fast clip in Miami and Orlando, where bank debits in the third quarter were up 27 and 26 percent, respectively, from last year. G e o r g ia Accelerated growth in Georgia income during the third quarter illustrates one variation in the impact of national economic developments on an individual state. Apparently, in no other District state was the growth in income over last year as great as in Georgia. This growth N O N FARM EM P LO YM EN T 1947-49 = 100, Seasonally Adjusted i I 2 K . , 1 .................... >, ....tni.i. I .....J t, „XmmX .....A ----,i ..... JL. .1.......», „ t „„„„ | ...........1954 , I ........ 1955 ■ ' • 5 • is explained largely by the reaction of the state’s economy to sustained and increased demands for the manufactured products upon which it relies for a major part of its income. Most striking evidence was the 34-percent growth in employment between August 1954 and August 1955 in the transportation equipment industry, which added 8,000 workers to its payrolls. Much of this growth can be traced to the continuing demand for automobiles. Mild recovery in textiles increased employment 6 percent over a year ago and, because the industry is so important in Georgia, was a major force in increasing manufacturing payrolls. Practi cally all other types of manufacturing shared in the general employment growth. Other types of nonfarm employment, led by construction, also increased substantially. Georgia’s agriculture, too, shows improvements over its last year’s drought-stricken position. A larger crop of tobacco was harvested, and better forage and feed crops have supported a higher rate of livestock marketings. Favorable weather has been a major factor in insuring larger cotton, corn, and peanut crops, and as harvest of these crops advances, farm cash receipts should show fur ther gain. Nevertheless, the year-to-date net farm income is estimated slightly below last year’s. Louisiana Because of Louisiana’s economic structure, income growth lagged in recovering from the recent reces sion until the third quarter. Then nonfarm employment increased somewhat (measured on a seasonally-adjusted basis) and in August exceeded the year-ago level for the first time this year. Manufacturing payrolls were also higher, but total employment was below a year ago. Manufacturing not only is less important as a source of income in Louisiana than in some other District states, but also its composition is different. Its transportation equip ment industry, heavily concentrated in ship repair and construction, did not, of course, respond to increased demands for automobiles. Completion of ship building contracts, moreover, kept employment down. The food-processing industry—Louisiana’s most im portant manufacturing industry in terms of numbers em ployed—has not shared in the recent economic expansion. Significant employment gains, however, were scored in mining—including petroleum production—and in chemi cals, apparel, and paper manufacturing. The state’s agriculture yielded considerably less income in the first half of this year than in that period last year, largely because of lower returns from crops. In the third quarter, however, greater livestock receipts caused a sub stantial improvement over 1954. With only a slight gain in cotton income and with output of other crops down, how ever, the year’s total is likely to be less than in 1954. Despite Louisiana’s relatively modest economic expan sion during the third quarter, some economic indicators registered significant gains. Spending by check during September was 11 percent greater than a year earlier, and purchases from department stores were up 4 percent. Total deposits at Louisiana member banks at the end of September were 4.5 percent above those of a year earlier. Mississippi With farm conditions mending in the third quarter, general economic activity throughout Mississippi has shown improvement. Farm income is more important there than in other District states, and changes in the con dition of agriculture strongly affect the state’s economy. Percentagewise, income growth in Mississippi from the third quarter of 1954 apparently exceeded that of the Dis trict. This year nature smiled more kindly on farmers, and harvests were better for most crops. Cotton production will probably be greater than last year despite the cutback in acreage, and both soybean and milk production are up. Cattle and calf slaughtering was also greater and offset much of the decline in the slaughter of hogs. Mississippi’s farm income for the year may possibly exceed that of 1954. Farmers were not the only ones finding more money in their pockets. Mississippi’s growing manufacturing indus tries contributed substantially to the improvement, and employment in public utilities and trade firms also showed growth. Construction income, showing some hesitancy in the third quarter, remained well above a year ago and topped the District change by a considerable amount. Nonfarm employment increased about 3 percent for the year ended August. Although transportation equipment em ployment registered a decline in August from last August, the recent 50-million-dollar ship construction contract awarded at Pascagoula undoubtedly will bolster future employment. The reaction to the improved income conditions has not been completely reflected in consumer spending, according to available indicators. Gains over last year in checking account activity, measured by bank debits, department store sales, and new automobile registrations are below those in other parts of the District. Deposits at member banks at the end of September in that part of Mississippi served by this Bank were 2 percent greater than a year earlier—an increase lower than that in any of the other District states. Tennessee Tennessee’s current economic position can be traced to no single major development. In its diversified economy expanding and contracting forces were at work. Total nonfarm employment declined consistently on a seasonally-adjusted basis between the end of last year and April of this year, despite an almost constant increase in manufacturing employment throughout the state. Comple tion of major construction projects, such as that at the atomic center near Knoxville, contributed to a decline in construction employment which was not offset entirely by a pickup in manufacturing. In May, however, employment rose, but remained stable through June, July, and August. Within manufacturing, conflicting trends show up. High primary metals production, chiefly aluminum, has helped the economy, but a continued slump in the important textile industry has hurt manufacturing employment growth. Nevertheless, economic expansion has been strong enough to raise Tennessee’s income about 6 percent above a year earlier, with half the gain coming from manufactur ing. Most indicators of consumer spending now show greater rates of increase over last year than for the District. The farm picture in Tennessee was brightened some what by a gain in cash receipts in the third quarter over a year ago. Increased income from cattle and poultry prod ucts more than offset decreases in returns from some crops and from hogs. 6 Sixth District Statistics In s t a lm e n t C a sh Condition of 27 Member Banks in Leading Cities Lo a n s (In Thousands of Dollars) No. of Lenders Lender Federal credit unions . . S tate credit unions . . Industrial banks . . . Industrial loan companies Small loan companies . Commercial banks . . . . . . . . . . . . . . . Outstandings Percent Change Sept. 1 9 5 5 from Sept. Aug. 1954 1955 Volume Percent Change Sept. 1 9 5 5 from Aug. Sept. 1955 1954 — 10 + 19 —19 —13 —4 . 38 . 16 . 8 . 11 . 29 . 33 + 1 +4 +1 + 24 + 44 + 33 —1 +1 +2 —8 + 56 + 34 —6 + 20 + 16 + 18 + 12 + 60 + 14 Retail Furniture Store Operations Percent Change Sept. 1 9 5 5 from Sept. 1 9 5 4 Aug. 1 9 5 5 Item ......................—12 Total sales ........................... . . . . —18 Cash s a le s ................................ . . . . —11 Instalment and oiher credit sales . . . . . . . +0 Accounts receivable, end ol month . . . —1 Collections during month . . . . . +10 Inventories, end of month + 16 +6 + 17 + 10 + 11 .......... —1 Wholesale Sales and Inventories* Type of Wholesaler No. of Firms Reporting Grocery, confectionery, meats Edible farm products . . . Drugs, chems., allied prods. Paper, allied p roducts. . . A u to m o tiv e................................ Hardware, plumbing & heating goods ...................... Machinery: equip. & supplies Industrial ........................... Iron & steel scrap & waste materials . . . . 31 11 11 7 49 Sales Percent Change Sept. 1 9 5 5 from Aug. Sept. 1955 1954 No. of Firms Report ing +0 +4 + 26 +6 + 11 16 n.a. 9 n.a. 46 +9 + 22 + 26 25 —17 +6 +0 —5 —5 —8 13 32 15 16 +9 +4 —11 12 11 10 + 64 Inventories Percent Change Sept. 1 9 5 5 from Aug. Sept. 1954 1955 +7 —5 +3 +3 —6 +9 +5 —2 —4 + 14 Department Store Sales and Inventories* Percent Change Place 1955 +2 ...................... 1954 + 10 —10 —7 —5 —5 +1 —1 +1 —3 +6 +9 +5 + 16 +9 +22 + 14 + 10 +7 + 11 +5 + 12 + 15 +1 + 13 ALABAMA Birmingham . . . . M o b ile ........................... Montgomery . . . . FLORIDA ............................ Jacksonville . . . . O rlando............................ S t. Ptrsbg-Tampa Area St. Petersburg . . T a m p a ...................... GEORGIA ............................ A tla n ta * * ....................... Augusta ...................... C o lu m b u s...................... M a c o n ........................... R om e**........................... Savannah** . . . . LOUISIANA..................... Baton Rouge. . . ■ New Orleans . . . . MISSISSIPPI . . . . J ack so n ............................ Meridian** . . . . TENNESSEE . . . . Bristol (Tenn. & V a .)* * . . . . Bristol-KingsportJohnson City** . . Chattanooga . . . . K n o x v ille ...................... N a s h v ille ...................... DISTRICT ...................... +8 —8 +5 + 12 +3 .—10 +7 —13 +0 +2 +7 —2 +8 +8 + 15 +3 +4 9 Months 1955 from 1954 + 10 +9 + 11 Inventories Sept. 30,1955, from Aug. 31, Sept. 30, 1955 +9 + 10 1954 +8 + 10 +5 —3 +8 + io +7 +8 + i4 + 14 +4 +7 +3i —1 +7 +7 +7 + ii +8 +7 +8 + 16 +6 +9 +5 +9 +1 + 12 + 13 +3 +19 +8 +8 +4 —1 —2 + 11 +7 + 10 +7 +5 +7 +4 +2 +9 +7 + i2 + 13 —4 +3 —3 +9 +2 —2 +4 +0 + 14 +5 + 11 —0 —0 + 14 +s + 11 +8 —4 —7 —2 +8 +8 +9 + 29 + 12 +8 + i + 12 +7 +7 +55 +7 + 11 ^Reporting stores account for over 9 0 percent of total District department store sales. **ln order to permit publication of figures for this city, a special sample has been constructed th a t is not confined exclusively to department stores. Figures for non department stores, however, are not used in computing the District percent changes. Loans and investments— T o t a l ................................ Loans— N e t ........................... Loans— G r o s s ...................... Commercial, industrial, and agricultural lo a n s. Loans to brokers and dealers in securities Other loans for purchasing or carrying securities Real estate loans . . Loans to banks . . . Other loans ...................... Investments— Total . . . . Bills, certificates, and notes . . . . U. S. bonds ..................... Other securities . . . Reserve with F. R. Bank Cash in v a u lt...................... Balances with domestic Oct. 20. 1955 1954 1955 1954 3,328,426 3,251,902 3,186,832 1,634,603 1,558,815 1,302,970 1,659,019 1,582,741 1,324,786 +2 +5 +5 +4 + 25 + 25 899,280 865,372 749,496 +4 + 20 26,540 29,276 14,769 —9 +80 39,735 41,477 32,475 155,635 99,652 147,031 16,495 27,733 7,167 521,334 471,852 421,227 1,693,823 1,693,087 1,883,862 —4 +6 —41 + 10 +0 + 22 +56 * +24 —10 710,128 884,791 288,943 534,173 46,079 +7 —5 —1 —1 +7 —13 —15 + 12 —8 + 13 277,152 244,997 2,357,818 2,269,123 628,400 ’610,044 89,601 133,881 674,190 709,985 38,000 12,400 —11 —1 —0 + 11 +2 +45 +1 +3 +3 —25 —3 * 615,283 754,006 324,534 491,431 51,900 247,421 Demand deposits adjusted . 2,343,252 627,352 Time deposits...................... . 99,762 U. S. Gov’t deposits . . Deposits of domestic banks . 688,798 B o rro w in g s ........................... 55,250 572,600 793,646 326,841 497,840 48,470 *100 percent or over. Debits to Individual Demand Deposit Accounts (In Thousands of Dollars) Percent Change + 14 + 13 + 10 + 70 Sept. 21, 1955 .. *Based on information submitted by wholesalers participating in the Monthly Wholesale Trade Report issued by the Bureau of the Census, n.a. Not available. Sales Sept. 1955 from Aug. Sept. Oct. 19, Item Percent Change Oct. 19, 1955, from Sept. 21, Oct. 20. Sept. Aug. 1955 1955 35,759 605,587 23,381 30,932 228,838 129,846 41,918 Sept. 1955 from 9 Months Sept. Aug. Sept. 1955 from 1954 1955 1954 1954 33,579 596,594 22,162 30,206 222,921 116,381 39,358 31,542 462,562 19,952 24,075 183,714 110,553 35,242 +7 +2 +6 +2 +3 + 12 +7 + 13 +31 + 17 + 28 +25 + 17 +19 + 12 + 22 +9 +22 +21 + 18 +12 546,710 471,436 723,174 106,840 65,139 115,523 222,288 63,620 530,113 490,260 757,649 106,653 63,257 112,991 216,139 68,273 468,106 394,549 614,835 86,056 53,615 97,318 188,423 50,103 +3 —4 —5 +0 +3 +2 +3 —7 +17 +19 + 18 +24 +21 +19 + 18 +27 + 13 +23 +25 +27 + 11 +22 + 16 +22 48,899 1,465,550 94,761 B ru n sw ick ..................... 14,281 C o lu m b u s...................... 98,528 6,276 Gainesville* . . . . 42,217 16,261 98,540 13,824 40,074 Savannah ...................... 134,383 V a ld o s ta ...................... 28,012 46,965 1,546,776 90,195 15,241 92,502 4,531 39,634 14,450 98,456 16,618 38,226 128,535 53,993 40,922 1,296,034 84,073 13,119 83,914 5,377 35,529 13,987 90,598 11,371 32,397 121,193 20,332 +4 —5 +5 —6 +7 +39 +7 + 13 +0 —17 +5 +5 —48 + 19 +13 +13 +9 + 17 + 17 + 19 + 16 +9 +22 +24 +11 +38 +22 + 12 + 12 +7 + 18 +7 +28 + 11 +17 +23 +22 + 10 +16 ALABAMA Birmingham . . . . M o b ile ........................... Montgomery . . . . Tuscaloosa* . . . . FLORIDA Jacksonville . . . . M i a m i ............................ Greater Miami* . . P e n s a c o la ..................... S t. Petersburg . . . T a m p a ........................... West Palm Beach* . GEORGIA Albany ........................... LOUISIANA Alexandria* Baton Rouge Lake Charles New Orleans MISSISSIPPI Hattiesburg . . . . 57,940 150,252 66,589 1,050,314 50,142 149,281 63,376 1,100,669 47,962 144,380 60,417 986,565 + 16 +1 +5 —5 +21 +4 +10 +6 +10 + 11 + 17 +10 . . . . 27,234 189,564 35,224 17,001 24,005 182,436 30,812 15,658 21,686 158,692 29,881 16,549 + 13 +4 + 14 +9 +26 +19 + 18 +3 + 12 + 12 + 14 +5 32,102 30,091 27,928 +7 —2 +6 —3 —3 —6 + 15 + 17 +20 + 16 +9 +16 +7 + 12 + 11 +28 + 11 + 13 —2 + 15 + 15 +1 + 13 +7 . . . . . . . . . . . . M eridian......................... Vicksburg ..................... TENNESSEE Chattanooga . . . . 248,255 252,915 212,781 Johnson City* . . . 35,149 33,272 29,188 58,038 Kingsport* . . . . 59,653 49,870 165,914 170,950 K n o x v ille...................... 152,678 550,975 445,330 N a s h v ille ...................... 516,458 SIXTH DISTRICT 32 C i t i e s ...................... 7,052,138 7,176,145 6,116,357 UNITED STATES 345 Cities . . . . 169,000,000 167,365,000 149,899,000 *Not included in Sixth District totals. 7 Sixth District Indexes Nonfarm Employment Aug. 1955 SEASONALLY ADJUSTED District T o t a l ................................ 1 2 1 A labam a............................................. 1 0 9 140 F l o r i d a ........................................... G e o r g i a ........................................... 1 2 5 L o u i s i a n a ......................................1 1 6 M ississippi.......................................1 1 7 T e n n e s s e e ......................................1 1 7 UNADJUSTED District T o t a l ................................ 120 109 A labam a............................................ F l o r i d a ........................................... 133 G e o r g i a ........................................... 125 L o u i s i a n a ...................................... 116 M ississippi....................................... 1 1 8 T e n n e s s e e ......................................1 1 7 July 1955 Aug. 1954 1947-49 = 100 Manufacturing Manufacturing Employment Payrolls Aug. 1955 July 1955 Aug. 1954 Aug. 1955 121 113 139 124 116 118 117 117 108 135 118 115 114 114 114 101 144 120 101 114 114 116 llO r 141 121 103 116 115r 109r 101 139r lllr lO lr llO r 109r 166 142 203 178 151 177 171 120 112 132 123 116 117 116 117 114 108 102 128 134 118 121 116 102 114 115 1 1 5 ____________ 1 1 5 114 107 133r 119 101 115 113 109r 101 129 112r 103r lllr llO r 164 142 186 176 152 179 169 Sept. ___________________________ 1 9 5 5 DISTRICT SA L E S *. . . . 1 4 0 p A tlanta 1 ................................ 1 5 0 Baton R o u g e ......................1 1 9 Birmingham............................1 1 7 Chattanooga............................ 1 3 0 J a c k s o n ................................ 1 0 7 Jack so n v ille........................... 1 2 9 K noxville................................. 1 5 0 M a c o n ...................................... 1 3 2 N a sh v ille ................................. 1 2 2 New O r l e a n s ...................... 1 3 1 St. Ptrsbg-Tampa Area . 1 4 4 T a m p a ...................................... 1 2 6 DISTRICT STOCKS* . . . 15 7p Unadjusted Aug. 1955 Sept. 1954 Sept. 1955 Aug. 1955 Sept. 1954 143 139 118 118r 125 109 124 155 136 130 143 144 126 154 126r 131r lllr 109r 130r 109r 113r 132r 121r 117r 126r 134r 120r 142r 136p 158 124 125 131 111 113 149 141 116 125 126 115 1 6 3p 129r 134 107 107r 113 100 110 143 124 115 133 118 110 150r 122r 137r 115 116r 131r 113r lOOr 131r 130r lllr 121r 117r 109r 147r 'To permit publication of figures for this city, a special sample has been constructed th a t is not confined exclusively to department stores. Figures for non-department stores, however, are not used in computing the District index. *For Sixth District area only. Other totals for entire six states. **Daily average basis. Sources: Nonfarm emp., mfg. emp. and payrolls, state depts. of labor; cotton consump tion, 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 Reserve Bank Cities • Branch Bank Cities District Boundaries ——Branch Territory Boundaries ^ Board of Governors of the Federal Reserve Sys+em Aug. 1954 173 157 182r 154 178r 169r 151r 135 191r 150r 143r 163r 154r 166 154 184r 175 155 175r 168r 149r 135 175r 149r 144r 165r 152r 202r Sept. 1955 Aug. 1955 Sept. 1954 Furniture Store Sales*/** Sept. 1955 Aug. 1955 Sept. 1954 1 0 7p 106 111 120 92 87 99 95 112 114 115 207 266 147 623 359 301 189 266 331 208 145 191 124 236 188 310 168 175 115 113 132 102 83p 85 76 HOp 118 119 113 115 115 126 115 95 98 105 94 132 102 84p 93 77 120 Other District Indexes Department Store Sales and Stocks** _________ Adjusted________ July 1955 Construction Contracts _______ Adjusted_______ Sept. Aug. Sept. __________________________________1 9 5 5 1955 1954 Construction c o n tr a c ts * .................................. Residential .................................................. Other .................................................................. Petrol, prod, in Coastal Louisiana and Mississippi** . . 1 5 4 148r Cotton co n su m p tio n * * ...................... 95 105 Furniture store s to c k s * ......................1 0 9p 102 Turnover of demand deposits* . . 2 0 .6 2 1 .3 1 0 leading c i t i e s ........................... 2 2 .0 2 3 .6 Outside 1 0 leading cities . . . 1 7 .8 1 6 .9 Aug. July 1955 1955 Elec. power prod., t o t a l * * ....................... Mfg. emp. by type A p p a r e l.................................................1 5 2 151 C h e m ic a ls ............................................1 3 1 131 Fabricated m e ta l s ........................... 1 6 3 168 F o o d ...................................................... 1 0 7 109 Lbr., wood prod., furn. & fix. . 83 84 Paper and allied prod..................... 1 5 3 153 Primary m e ta ls ................................ 84 105 T e x til e s ................................................. 95 95 Trans, equip......................................... 1 9 3 190 r Revised p Preliminary n.a. Not available 127r 90r 110 1 9 .9 2 1 .3 1 7 .1 Aug. 1954 141r 127r 151r 107r S ir 147r 95r 91 169 Sept. 1955 Unadjusted Aug. Sept. 1955 1954 263 190 317 247r 284r 219 208 196 217 152 97 10 9p 148r 125r 92r 21.0 22.2 1 7 .8 Aug. 1955 n.a. 153 127 161 108 84 153 84 95 186 100 99 1 9 .8 110 2 0 .3 2 1 .5 1 6 .1 1 7 .1 July Aug. 1955 1954 258 217 21.2 148 126 159r 106 84 151 104 94 185 143r 123r 149r 108r 81r 147r 95r 91r 162
@FedFRASER