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In this issue: Southeastern Agriculture: A N ew D ress and a N ew Girl, T oo M ississippi in 1972 District Banking N otes: Loans and Investm ents District Business C ond ition s S o u th e a s te rn A g r ic u ltu r e : A N e w D re s s a n d a N e w G ir l, T o o by G en e D. Sullivan "T h e s a m e o ld g ir l w it h o b je c ts th a t h a v e d e s c r ip tio n o f d u r in g la s t th e a n e w u n d e rgo n e ch an ge s te n in stru c tu re th at a g r ic u ltu r e ye ars. th a t h a r d ly a n y fe a tu r e th e d re ss o n " C h a n ge For m o st o f 1969 C e n su s p e r io d s , th e th e tw o th e average fiv e le a v in g r e m a in in g m ad e had up s h ift e d s h r in k a g e gro u p s to p e r io d s a c t u a lly fa rm T h is S ix t h is II, 5 5 -6 4 1950 to ta l R e se rve o f th e In 1950, fir s t t im e gro u p o f In a d d it io n , each p e r io d . D u r in g m u ch o f le s s fa rm M o re o ve r, th e o f th e re th e th e m o st th a n had o p e rato rs in ave rage age s e r v ic e s o n d u r in g age re ce n t 35 t h is been th e 2 5 -3 4 fo r in 44 d e c id e d age p e r io d , e a r lie r year fa rm e rs to gro u p a fiv e -y e a r tru e o ld e r p ro ce ss o f fro m 1969, had o f s u ffic ie n t c o r r e s p o n d in g been o f ste ad y a T he C e n su s n a tu ra l a g in g In in w e re re ce n t w it h in gro u p . fa rm e rs p r e d o m in a n c e r a n g in g fa rm e rs o f in o p e rato rs. fa rm o f a g r ic u ltu r e . a lm o s t th e c o u p le d fa rm e rs age e n te r in g fro m ye ars case s, r e c o g n iz a b le . ave rage r e m a in e d r e s u lte d D is t r ic t a g r ic u ltu r e C h a n ge d w e re th at fo r re ce n t age p r o p o r t io n in c r e a s e d . to d e s c r ib e a p p r o p r ia t e Fe d eral th e lo n g e r th e m en o p e rato rs in n o H ave W a r has n u m e ro u s d e c lin e s th e th e u se d not a n p e rv ad e d ago y o u n g sh o w e d o f n u m b e r th e th e se an d W o r ld o p e rato rs. th e th e s in c e h o w e ve r, o fte n It is b e g in n in g fa rm e rs, th u s o ffs e t tin g th e m o st in age ye ars. fa rm th e so T h e m s e lv e s fe w e r a g r ic u ltu r e n u m b e r o f y o u n g th e w it h in has d e cad e s s in c e th at o f A g r ic u ltu r e p r e c e d in g fa rm e rs ye ars in d ic a t in g ad a ge r e m a i n s a s it w a s t e n y e a r s a g o , a n d , in s o m e e x is te d F a rm e rs in c r e a s e d , is a n s u p e r f ic ia l c h a n g e s . age C e n su s gro u p th re e D is t r ic t sta te s d e c lin e d . V ast ch an ge s stru c tu ra l o p e rato rs on in s h ift th e la r g e r an d ch an ges. R e c o g n iz in g o f th e lo a n s For m arke t T h is at th e se e x a m p le , v a lu e a o f s h ift th e w e re la r g e ly le v e l have fa rm asse ts. Monthly Review, u p o n re q u e s t V o l. to A tla n ta , G e o r g ia 150 th e on LV II, m ad e c r e d it T h is m an a N o . R e s e a rc h has o f th at a lr e a d y have fa rm a llo w s r e c e n t ly to th e y are c o n s e r v a tiv e e s tim a t e F re e p la c e d r a s t ic ge ared h ig h e r m o re le n d in g . o f s u b s c r ip t io n D e p a r t m e n t , at F e d e ra l th e a n d fa rm in p u t s , c o n tin u e d a d j u s t m e n t s in o p e r a t io n s le n d e r s fo r u n d e rgo n e have th e e d u cate d d e m a n d th at c o n s id e r a b le a c c o m p a n ie d b e tte r th e to w h o m 9. have yo u n ge r, a g e n c ie s a g e n c ie s sco p e fa rm s o f m ean t th o se b road e r b ase d has fa rm th e m a n a g e r ia l c a p a b ilit y o f th e lo a n s p r o p o r t io n ch a n ge s, a g r ic u ltu r e c o v e r in g fo r g r o w in g in fo r m a t io n s u c c e s s f u lly s e r v ic e m ake a fa rm s. s e r v ic e s , p ro gra m s. d e m a n d to w ard In to t h e ir up to p e rc e n ta ge s w e ig h t on th e p a st, m arke t v a lu e a d d it io n a l R e s e rv e B a n k c o p ie s o f A tla n ta , 3 0 3 0 3 . SEPTEMBER 1972, M O N T H L Y REVIEW o f c o lla t e r a l. th e T h e in d iv id u a l p r o c e ss, p o s s ib ly le s s v a r ia tio n p o t e n t ia l w as b e cau se in e a r n in g m in im iz e d t h is in in th e q u a lit y c a p a c it y th e o f e v a lu a t io n a g r ic u lt u r e r e s e r v o ir p a st th e re w a s a m o n g fa rm B ut L a rge r o p p o s ite F a rm s o f in (a th e d e c lin e th e m o st s in c e in n o t a b le 1950. h a lf ho w e ve r, 1954 has n u m b e rs ch an ge s A c c o r d in g A g r ic u ltu r e , th a n fa rm th e to in th e 1950 le v e l. an d 1959. S in c e been m o re th at re ce n t a fa rm e rs D is t r ic t lo w d e c lin e in p o in t. r e t ir e d an d a la r g e e x is te n c e fa rm s w e re are th e t h e ir s m a lle r th e p r o p o r t io n a te a g g r e g a t io n o f O n c e o f o ld e r o f th e fa rm e rs rece n t th e e n o u gh has by of th e to 82 o f n o w a lm o s t is have T he its u p w ard as lit t le th e th at la r g e r a p id ly acre age has in as Even le s s th e fa rm s gro w th s iz e e v id e n c e d e c lin e d e v id e n t th at fa rm s. t w ic e th e re r e m a in in g an d in to By c o n tra st, s m a lle r in 1969 as t im e s e x p a n s io n d is le ft its by in b e in g been la r g e average fa rm th e fa rm o n ly la r g e s t in gro w n fa rm s iz e has sh o w n an d an average o ve r in th e th e 1950 p e r io d w e ll e x is tin g w it h s in c e a fro m acre s— s iz e , o n e s iz e w h e re , 220 co u n te rp art. th e th e in have T e n n esse e 1950 fa r fa rm s aro u n d o n e -h a lf o f in ch an ge M is s is s ip p i, d ecades, acre s tw o 1950. lo w e s t average rate fa rm o n e - h a lf t im e s a s T e n n esse e n u m b e r o f s t ill fa rm s la r g e r e t a in s o f an y sta te D is t r ic t . F lo r id a h o ld s t h e d is t in c t io n average th re e . is r a p id tw o th e . it m a in t a in o f h a v in g th e fa rm s is th e red u ced . ch an ge s t h is ra te o f in c r e a s e . m o st w it h in Few er in th e c o n tin u e d ago ; to o ccu rre d o f o ld e r have an d g r e a tly been to n u m b e r n u m b e rs ye ars, have has d e cad es fa rm The u n it s fo rm e r fa rm r e t ir e m e n t , be s iz e . be c u r r e n t ly c o m m u n ity . in s iz e th e 1950 or w ill im a g e ) in o f a n y s lo w d o w n ab so rb e d of th e ir h o ld in g s . fa rm s an n u m b e r as tw o so m e m ay p o r tio n th e w it h in is ab o u t e x p a n d in g o f le s s ye ars n u m b e rs m a jo r to d e c lin e th e re s in c e w as th o u gh d e c lin e , cam e s o ld n u m b e r t im e , A sh ru n k C e n su s an d o f fa rm D is t r ic t it o f a g r ic u ltu r e m a jo r fa rm n u m b e rs o th e r fa rm e rs w h o T h u s, th at o n e C e n su s had th e m o d e ra te , a p p r o a c h in g 1969 T h e b e tw e e n been D is t r ic t th e n u m b e r o f fa rm s o ccu rre d in d ic a t io n has d e a th fa rm s m ir r o r e v id e n c e d th ru st T h e s m a ll C h a n ge s o p e rato rs. w e re Few er th ro u g h o f f e w e s t n u m b e r o f f a r m s , b u t in fa rm t im e s s iz e th at in in F lo r id a w as 1969 m o re th a n T e n n e sse e . . Mi lion N um ber of farm s F a rm U se o f C a p ita l So ars 1.0 W it h H ’5 0 but im ’5 4 la r g e r . th e e n la r g e m e n t . ’5 9 ’6 4 0.5 fa rm has so are d . a t t r ib u t a b le ’6 9 0 T he o f v a lu e b u ll '5 4 ’5 9 '6 4 '6 9 fa rm s th e per in c lu d e d re al 1969 b a s is w as th a n it s u b s t it u t io n in th e t r a ile d . 0 T he lo c a t e d in v a lu e o f th e m o st $ 1 4 0 ,0 0 0 a per o f th e a ls o as in 1950 n in e fo ld m o re fa rm in c r e a s e b e cau se t im e h o w e ve r, t im e s w ay in s in c e of th e 1950, v a lu a b le sta te ave rage p asse d . D is t r ic t v a lu a b le in 1950. D is t r ic t th e but acre s is an d $ 6 ,0 0 0 in v e s t m e n t a lo n e , in le d th e fro m per in c r e a s e la n d b e cau se acre s fiv e w as M is s is s ip p i v a lu e in m o re e sta te fa rm 1 00 b a s is , n o t o n ly acre o f r e p r e s e n t in g in d iv id u a l have a fa rm in c r e a s e g r o w in g , v a lu e in c r e a s e d 1969, has been O n fa rm s, F lo r id a , per in c r e a s e an d fa rm fa rm h o w e ve r, w h ere w as in T e n n esse e th e n e a r ly w e re average t w ic e as v a lu a b le Thous. $ per f arm gre at as 60 expen ses rate 30 o f 0 tw o fa rm on an d o th e r o n e -h a lf c a p ita l, le d th e $ 1 .6 1970, fo r a n n u a l o p e r a t in g F lo r id a an b illio n th e in im p r e s s iv e expen ses e x p a n d in g in w ay D is t r ic t . sh o w n o p e r a t in g t im e s th e w it h a ls o fro m in in r e q u ir e d has F a rm b illio n has state c a p ita l fa rm s in c r e a s e d $ 4 .2 G e o r g ia FEDERAL RESERVE BANK OF ATLANTA an y gro w th . D is t r ic t ab o u t F ig u r e s sh o w n for D istric t state s. in T h e w o r k in g Value of farm s N ote an d s u b s t a n t ia l r is in g per in 200 m o re fa rm s m o st fa rm s in e x p a n s io n . . a on $ 5 4 ,0 0 0 The th e O n in v e s t m e n t to Size of farm s and to b u ild in g s . Acres ’5 0 o f o f m a c h in e r y f o r la b o r , th e c a p it a l e m p lo y e d th e in in m o re 2 0 -y e a r in as to th a n p e r io d . in c r e a s e d c o m in g th e 1950 a u se o f c lo s e 151 S h a r p ly r is in g p ro d u c tio n expe nses and. . . T h ou s. $ p er farm c r e d it to in te r e st fin a n c e T he N o asp ect w it h in s o a r in g a g r ic u lt u ra l in v e s t m e n t . u se as a u se fu l c a p ita l, as a ggre gate v o lu m e o f s in c e c r e d it th an $3 o f b illio n A lth o u g h have m a in t a in e d gro w th 21 in to ta l in 1950. p o s itio n o f ban ks been fo r s iz e s e r o d in g . d iffic u lt cu sto m e rs. la r g e r , c r e d it L e n d in g as in L o u is ia n a , by ab o u t O n a $400 per o f c a p ita l The th at In had th a n th e fa rm — T he le s s r a p id r e fle c t s su ch as fe e d s, fro m w h ic h on th at has a as to a ll are o n ce d is p la y e d w as th e o n e o f r e s u lt 152 o f is th e th e d e a lin g la r g e an d m o re as and ban ks o f to fa rm s o m e t im e s b o rro w e rs. to not so th e in d iv id u a l in a p o t e n t ia l tak e s case n u m b e rs of M o re o ve r, gro w n o p e rato r w as fa rm a c c u m u la t e d lo a n s fa rm ye ars, o f a c c o m m o d a t io n have th a n w it h F a rm s By m o re of in p u t s , p u r c h a s in g The fa rm in te r e s t e x p e n d it u r e r a p id in c r e a s e d gro w th u se are a M o re cash any has on w h e n of P r o d u c t iv e T h an fa rm of era m e asu re , D is t r ic t o f p r ic e th e th at ever an ban ks s m a lle r Ever th at has been o f w as w it h a g r ic u ltu r a l not fa rm s D u r in g to th e at n e a r ly M o st of la r g e r K ore an a g a in in 1970 c o m m o d it ie s a g r ic u lt u r a l reach ed gro w th to tal 1950. are s ix -s t a te s t a n d in g in a t t r ib u t a b le 1 9 5 0 's , T h e th e b illio n e x is te d in c r e a s e s . e a rly b e fo re . u n in te r r u p te d 1960, o f $ 5 .9 le v e l o u tp u t to h ig h s in c e in c o m e th e p h y s ic a l o f th an e x p e r ie n c e d r e c e ip t s d o u b le a u n it p r o d u c t iv e cash th a n p r o d u c in g case. a lm o s t t h is in c r e a s e and th a n m o st o n e th e o p e ra to rs. fa rm , ave rage . c h e m ic a ls , a o ve r as 33 1969, a s t o u n d in g . p r in c ip a lly m o n e y an y w e re per p r o d u c t io n q u a n tit ie s ra th e r w it h p r o p o r t io n s o ve r in c r e a s e are o f o n ly 1971, so u rc e e n c o u n t e r g r e a t e r r is k s , s i n c e la r g e r fo r in c o m m e r c ia l s in g le th a t a th e th e s iz e le n d e r s p r o p o r t io n $ 4 ,8 0 0 per ab o u t D is t r ic t in s e c tic id e s , By g r o w in g not r e m a r k a b le e x p e n d it u r e s $ 2 4 ,0 0 0 th e D is t r ic t $ 1 0 ,0 0 0 w as u se im p r e s s iv e . 1950. is s o m e w h a t so u rc e s c o m b in e d o f la r g e r fa rm e rs b o rro w e d in o u t-o f-p o c k e t areas o f to th e ave rage state , average in in m o re n e a r ly le a d in g h a lf u se f e r t iliz e r s , t h e m s e lv e s rate s, in th e o ff-fa rm p a id th a n th e $ 1 ,5 2 5 q u in t u p le d gro w th fig u r e , th e b o rro w e rs, d is a s t e r gro w th o f gro w n th e lo w e s t is e v e n o n ly T e n n e sse e e x p e n d it u r e s It th e expen ses to th e th o se a n n u a lly . b a s is , D is t r ic t sta te s F lo r id a , m o re w it h m illio n am o u n te d w h e re as per in am o u n t fa rm . state fa rm p r o d u c t io n fa rm e r had th e exceeded as an nual t im e . fa rm e rs an d d e m a n d s p r o h ib it o f to have T h u s, lim it s d e m a n d s w it h e x p e n d it u r e s to b illio n . th at b e co m e s s m a lle r th e sta te s it th e to 1964 to ta l s lig h t ly to tal lo a n s c r e d it fo r r e s t r ic t iv e c r e d it in A s a g r ic u lt u r a l gro w $ 6 .2 th e a cc o u n te d th e o f th e s h a r e o f th is lo a n s fa rm s. fro m lo a n s a g r ic u ltu r a l in o ver 1964, ban ks 23 acc o m m o d ate F ig u r e s sh o w n for D istric t s ta te s. b an k need gro w th so ared p r io r 1964, p e rce n t been r is in g D is t r ic t th a n u se d B an k have on exceeds to ta l has m o re m o re w it h d e m a n d s fa rm s in c e m a t e r ia lly fa r m in g in c r e a s e d s in c e o f r e la t iv e c r e d it to a to ta l fa rm s c r e d it c r e d it . co m p are d th e Ju st a p r o p o r t io n a te p e rc e n t p e rce n t th e D is t r ic t w id e ly ad d o f c r e d it c o m m e r c ia l d o u b le d can f a r m e r 's has in c r e a s e fa rm th at by D is t r ic t $ 3 .4 - b illio n q u a n tit y o u t s id e umion * h ig h e r r a p id ly th e b e co m e a g e n c ie s of 1950. has th e c r e d it on le s s e s p e c ia lly le n d in g a g r ic u lt u r a l m o re th a n c a p a c it y in d ic a t e d T h is b o th to o l e a r n in g M o st to s e v e n fo ld In C r e d it a cc o m m o d a te u se o f C r e d it gro w n p e r io d a n x io u s th e se co n d . has c r e d it . in c o m e T o ta l an d A g r ic u ltu r a l te n -y e a r o f fo r Note: o f o p e r a t io n . . . _____________________________________________________B illio n $ b o o s t t o t a l f a r m c r e d it , c o m m e r c ia l b a n k s o p e r a t io n s fa r m in g la s t r e c o g n iz e d th e U se o f th e f a r m e r 's to fa rm rate s. p r ic e s u n t il rath e r W a r a t t a in e d ve ry r e c e n t ly . M a jo r so u rc e s of th e gro w th in cash r e c e ip t s , SEPTEMBER 1972, M O N T H L Y REVIEW th e n , have d r a m a t ic been in c r e a s in g in c r e a s e s liv e s to c k . in T h is r e fle c t s o f p o u lt r y , p r o d u c t io n crop th e y ie ld s , o u tp u t g re a te r eggs, as per e ffic ie n c y m ilk , w e ll u n it in beef as C h a n g in g of d e c lin e th e an d In N e w a d d it io n t r a d it io n a l so m e th e crop s o f F a rm im p o r ta n c e So u th e a st, So yb e an se c to r, fro m crop s. h o w e ve r, has e it h e r n e w o ld e r o n es cash been p r o d u c t io n r e c e ip t s an d o f T he have o f m ake u p o f im p o rta n c e r e c e ip t s . o f a cc o u n te d in c o m e 1969, o ve r h o w e ve r, (1 ) p e rce n t c a t t le , to 40 fa rm 20 m o ve d p e rc e n t up fro m to tal p e rce n t o f to tal So yb e an sh o w n ye ars s ig n ific a n t an d has t r a d it io n a l in p r o v id e s p r o d u c t io n are a. at r e la t iv e ly a b r is k h ig h o n w ard a g r ic u ltu r e , rate s, has o f g r a in pace as fo r th ru st o f r e s u lte d in fa rm w o rke rs. T he 1971 sto o d ab o u t fo r by c o n tin u in g 6 5 1 ,0 0 0 FEDERAL RESERVE BANK OF ATLANTA fiv e in w e re A m o n g not g re a te st in th e to to to fa rm a m o u n t in g le v e l. By of The 7 6 ,0 0 0 th e S o u th e rn fo rc e o n ly in T he fa rm to in o f in th e o f The sce n e is e s s e n t i a l l y re ve rse th e A lth o u g h fiv e -y e a r th a t o ccu rre d la b o r fo rc e m ass its e lf 27 had w it h w o rk fo rc e o f ran ked L o u is ia n a o f in th e f ir s t in 1971, w it h th e th e p e rce n t p e rc e n t in T o as ex od u s in M is s is s ip p i 1971 its F lo r id a le v e l th e to tal 1 5 1 ,0 0 0 . p la c e d th a t state lis t . fa rm s d e c lin e 1950. to th e 107 w o rke rs w o rke rs n u m b e rs to th o se o n ly 1950. T e n n esse e b o tto m u n lik e ly w age la s t la b o r e r s , to c o n tra st, in c r e a s e d in le v e l. th e as state s, in fo rc e at r e d u c t io n s w o rk D is t r ic t r e d u c tio n n u m b e r 1950 s h r in k . th e e x is tin g its w it h in p e r io d s , w o rk a c t u a lly th e of gre at W h e re r is in g w o rke rs, as C e n su s 1950 acre s resp o n d o n e -th ir d r e d u c tio n s p r e v io u s c o n tin u e s crop s w it h in o ver fo rc e Sca rce r r a p id ly a g r ic u ltu r a l F ig u re s s h o w n fo r D istrict states. s lig h t ly th e c o n tin u in g m e c h a n iz a t io n a lo n g Note: p e r io d has c o m m o d it y . W o rk e rs B e co m e *1971 fig u re u se d b e c a u se of co rn leaf b lig h t in 1970. w o rk e n te r p r is e fro m crop s fa rm e rs th e p ast o th e r u se is 25 1950. so yb e an rem o ve d an d R ic e 10 b r o ile r s in t o th e p r o d u c t io n p r ic e s sp e d at th e so m e T o b a cc o cc r e c e ip t s , sta rte r, in r o a d s a lt e r n a t iv e c o tto n F a rm T h e la t e w it h in been so yb e an s in c e a a g r ic u ltu r e . T h e have o f T h u s, e xp an d o f p r o f it a b le th a t r e c e ip t s m ad e P e a n uts j ts cash In a p p r o x im a t e ly th o u gh gro w th p o s itio n s a la n d fa rm r a p id ly S o u th e a ste rn o f cash p r o d u c t io n , to C otton L in t 25 0 cash ab o u t (2 ) p o u l t r y p r o d u c t i o n , i n c l u d i n g b o t h p e rc e n t O a ts p e r io d cash eggs, 8 C orn 500 C o m m o d it ie s an d fro m Soybeans un de r 10 t h is 40 1950 B W heat th e to tal _ Lbs. per acre________________________________________ Cwt per acre th e to tal an d up 1970, fa rm e rs. d u r in g o f th e o f - ii i I I n Jf r-j fo r in w e ll " 17 90 196o| ch an ge d th e ’7 0 Bu per acre n la y in g In O n e in c o m e . im p o r ta n c e w h ic h n e a r ly o f ’65 d r a m a t ic a lly on p r o d u c t io n D is t r ic t ’6 0 in c r e a s e gro w th in c o m e o f c o tto n ’55 y ie ld s s t r id e s d e c lin e r e c e ip t s w e r e D is t r ic t in has p e rc e n t and p e r c e n t in 1 9 5 0 . p e rc e n t by c o tto n m o st a ’5 0 w h ere th e fa rm ye ars. th e ago, r e c e iv e d to tal th a t g a in e d as ye ars se c to r, ch a n ge d 27 IIIIIIIIIIIIIIIIIIIII gro w th , R a p id r e c e ip t s is th e e m p h a s is cash 20 th e r e c e ip t s a cc o u n te d w it h past c o tto n fo r fa rm o f th e ch an ges T w e n ty p e rce n t cash d u r in g - 2.0 No. of farm workers in in a g r ic u ltu r e . to ta l a decade. cash b r o ile r , liv e s t o c k h a lf la s t ram p an t v a s t ly S o u th e a ste rn fro m n o t a b le w e re th e D is t r ic t , a s c o m p a r e d r e m a r k a b ly to 1 9 6 0 's . o f cau se . . o f o n ly in c o m e g re a te r th e w o rk e rs. are a, n e w co m e r liv e s to c k or c o w th e o f c o n tr ib u t e d beef m ix a p p r o x im a t e ly m o st th e d u r in g r e c e ip t s in t h e in been s w e llin g so u rc e e ffic ie n c y th e in c o m e cash m a jo r have in hen, in o f th e p r o m in e n c e w it h in r e la t iv e e n te r p r is e s in p r e v io u s ly a id e d T he has a w it h in g a in e d p a r t ic u la r ly p r o d u c t io n , crop p r o d u c t iv it y liv e s to c k have m e c h a n iz a t io n E n t e r p r is e s in c r e a s in g an d e n te r p r is e s t h a t h a d m in o r th e to M ix and n u m b e r o f fa rm p o rk. _ A e n t e r p r is e s in t h e F ro m H e re? an d fa rm r a p id ly as th e y have p e o p le fro m th e has n o w o f ove r; th e so m e areas tre n d as w o rke rs la r g e r are s in c e ru ral b e gu n n u m b e rs 153 o f p e o p le to w n s in c it ie s . e ffic ie n c y o f th e to to liv e F a rm s an d to fa rm in th e p e o p le . as crop s, g r a in s u ita b le in t e r n a l T he fu rth e r fo r ru ral s iz e but be s u r r o u n d in g to e n te r p r is e n e w ad a p te d to th e e ffic ie n c ie s fe e d in g , of b u t p r im a r ily w ill fa rm s b e co m e fo r m o n e ta ry o p e rato rs to d o u b le w ill a g a in M o re o ve r, su ch o r ie n te d m o re fo o d m o re o f p r o m in e n t . m o re o n th e c o m m e r c ia l fo r s u b s is t e n c e th e b u s in e s s su c c e ssfu l o r ie n t a t io n u s e o f c r e d i t is w i d e l y D is t r ic t ever be g a in ), a n d r e fle c t w it h in to w a rd p ro d u cts an w ill ( i.e ., n o t c a r r i e d o f a g r ic u ltu r e . T h e p r o b a b ly an d a g r ic u ltu r e e v e r b e fo re fa rm n u m b e rs e n te r p r is e s r e g io n th a n a t t r ib u t a b le d e c lin in g m ix as So u th e a ste rn im p r o v e th e m o re o p e r a t io n s an d ch an ge liv e s to c k are as c o n tin u e lik e ly t o in c r e a s in g fa r m u n d e rgo in w ill p r o d u c t iv it y , n e xt d e c a d e are ch an ge s th a n o f ch o o se an d th at w ill be p r o d u c t io n are a fflu e n t e x p e c te d n e x t t e n -y e a r p e r io d . fa r m in g th e m o re th e p le a s in g an d in c r e a s in g ly o f to h ig h -q u a lit y th e p a la t e d is c r im in a t in g c o n su m e r.® APPENDIX Selected Characteristics of Sixth District Agriculture N u m b e r o f F a rm s D istrict Sta te s A lab am a Florida G eorgia Lo u isia n a M is s is s ip p i Te n n e sse e 1950 1954 1959 1964 1969 211,512 176,956 115,788 92,530 72,491 56,921 57,543 45,100 40,542 35,586 198,191 165,523 106,350 83,366 67,431 124,181 111,127 74,438 62,466 42,269 251,383 215,915 138,142 109,145 72,577 231,631 203,149 157,688 133,445 121,406 1,073,819 930,213 637,506 521,494 411,760 1950 1954 1959 1964 1969 99 118 143 165 188 290 316 338 380 394 82 96 135 163 221 80 87 102 114 124 106 121 151 176 205 1950 1954 1959 1964 1969 $ 4,809 6,816 12,780 20,552 37,596 $ 15,437 28,444 73,554 109,055 139,818 $ 4,566 7,053 14,292 24,322 51,611 $ 6,182 8,049 13,288 20,509 33,176 $ 6,008 9,231 19,671 31,752 54,209 1950 1954 1959 1964 1969 $ 49 58 89 125 200 $ 58 115 218 286 355 $ 55 74 106 150 234 $ 77 93 130 179 268 $ 57 76 130 180 265 $1,130 1,638 3,197 4,860 7,909 $ 4,652 6,400 10,701 14,210 23,698 $1,161 1,659 3,078 4,774 9,016 $1,170 1,521 2,463 3,377 4,817 $1,525 2,194 3,942 5,761 9,645 A v e ra ge F a rm V a lu e of L a n d o f La n d 1950 1955 1960 1965 1971 1950 1954 1959 1964 1970 $459 396 527 628 821 $ 98.7 178.1 287.6 690.4 1,155.3 1,333.9 F a rm 763 562 831 1,009 1,286 B u ild in g s E x p e n se s $ F a rm 689 582 738 920 1,228 A c re Per F a rm $ 1,706 2,224 3,817 5,387 10,831 C r e d it ($ M illio n ) $123.5 152.3 194.6 323.8 710.1 848.8 E m p lo y m e n t C a sh Per F a rm $ 82 112 171 233 321 $ 180.1 265.0 348.6 484.2 961.2 1,163.0 $ 151.6 241.9 272.4 516.8 897.5 1,049.0 $ 874.1 1,296.6 1,625.0 2,913.0 5,217.9 6,279.8 (T h o u sa n d s) 320 234 183 139 98 T o ta l $ an d 174.4 261.2 289.4 558.0 921.7 1,197.0 107 119 121 121 114 P er $ 7,416 11,497 23,719 38,636 74,414 A g r ic u ltu r a l $ 277 200 154 120 87 B u ild in g s $ 1,812 2,830 5,287 8,038 12,723 T o ta l $145.8 197.6 232.5 339.5 572.1 688.1 an d $ 43 61 97 135 234 P r o d u c t io n 1950 1954 1959 1964 1969 1971 (A c re s) 90 103 139 167 232 $ 5,323 7,905 17,944 29,155 54,883 V a lu e 1950 1954 1959 1964 1969* S iz e 130 145 185 215 234 459 340 239 179 125 213 182 151 121 76 In c o m e ($ $336 389 396 506 704 363 283 253 197 151 1,739 1,358 1,101 877 651 $530 524 656 797 1,058 $425 479 537 614 778 $3,202 2,932 3,685 4,474 5,875 M illio n ) *ln 1969, e x p e n s e s for certain c h e m ic a ls w e re reported that had n ot been in clu d e d in p re v io u s C e n s u s q u e stio n n a ire s. 154 SEPTEMBER 1972, M O N T H L Y REVIEW M is s is s ip p i in 1 9 7 2 by W illiam N. Cox, M l W e la s t s u r v e y e d e c o n o m y fu lly has th e sta te o f M is s is s ip p i e a r ly been g r o w in g at an in 1 9 7 1 . 1 S i n c e in c r e a s in g ly r a p id pace. th e n , th e n a t io n a l M is s is s ip p i has sh a re d in t h e a c c e l e r a t i o n . T o ta l p e rso n al a c t iv it y w e in c o m e gre w se co n d an d in c o m e , h a v e , t e lls t h e at a s lu g g is h ly h a lf o f 1 9 7 1 , im p r o v e d gro w th re b o u n d th e fu rth e r in d ic a t io n , b e st sto ry r e s p e c t a b le h o w e ve r, even is a n y p e rh a p s M is s is s ip p i rate th at g ro w th in th e fir s t o v e r a ll b e st. In 5V 2 o f rate fir s t of to 1972. is c a u g h t o f up per 11 If in e c o n o m ic h a lf o f 1 9 7 1 , p e rc e n t d o u b le d q u a rte r th e n , M is s is s ip p i m e a su re th e ye ar. p e rc e n t p e rso n al th e p e rso n al In th e per year in c o m e n a t io n a l e c o n o m ic in f u ll m e a s u r e . S t a t is tic s e c o n o m ic fo r n o n fa rm te m p o . fir s t h a lf o f 1 9 7 1 , th a t pace v ie w in g but th ro u g h su ch a u n e m p lo y m e n t e m p lo y m e n t T he an n ual it t r i p l e d th e fir s t p e r io d fe ll o f g iv e gro w th to fo u r 4 .3 5 .1 sam e h e re p e rc e n t m o n th s e x p a n s io n fro m th e rate o f to p e rc e n t in in th e 1972. fin d im p r e s s io n w as 1 .4 se co n d It th at o n ly is 1970 in rate to o f 4 .3 th e m a in t a in e d s u r p r is in g S t a t e 's D e ce m b e r q u ic k e n in g h a lf a n d h a r d ly th e o f p e rce n t w h en la b o r p e rce n t in J u n e 1 9 7 2 . W e can c o rro b o ra te e x p a n s io n w it h m o st o f in p a rt lo o k in g e v id e n c e e le c tr ic a lim it e d at th e th e h o st o v e r a ll stre n gth o f s u p p le m e n t a r y sco p e , ge n eral tak e n p o w e r m e n t a ls o u sage , e c o n o m ic s a le s in s t a lla t io n s , g iv e s tax s it u a t io n . an d o f th e N o t w it h s t a n d in g th e p r o b le m s . e c o n o m ic H er an d is t h e o n l y th e per o f th e sta te c o n tin u e s p o stw ar rece n t su rge c a p ita stan d ard average $ 4 ,1 3 9 ran k In o f $ 2 ,7 6 6 S ix t h per in t h e u n i o n d e s p ite p e r io d . p e rso n in th e fo r are u se fu l e x c e p tio n , ban k th e y c h e c k in g b an k o f an d b e st ran ks w as th e g iv e th e a cc o u n ts, le n d in g . 1 9 7 1 -7 2 $ 3 ,4 1 4 .2 in c o m e s u s t a in e d im p r e s s iv e as w ay to T h e ir agre e e x p a n s io n . th e illu s t r a t e lo w e s t a m o n g s u b s t a n t ia lly D i s t r ic t 's p e r c a p ita s ig n ific a n t T h e re fo re , to an d n atu re s t ill 1971 R e se rve w it h are th e y P r o b le m s p e rh a p s M is s is s ip p i F e d eral gro u p e c o n o m ic d ata o f a c t iv it y , M i s s i s s i p p i h a s s o b e r i n g e c o n o m i c in c o m e , liv in g , a re ce n t T h e se t h e lis t : p l a n t a n n o u n c e m e n t s , d e b its w id e s p r e a d as W it h o u t c o n tra c ts, S u b s t a n t ia l d ata. but d o w n c o lle c t io n s , c o n s t r u c t io n e v id e n c e M is s is s ip p i's in d iv id u a lly , o f q u ic k e n in g e x p a n s io n , u p t e le p h o n e o f e c o n o m ic year o f an 50 th e a r e a 's state s. n a t i o n 's M is s is s ip p i $ 3 ,0 0 0 . T h is e c o n o m ic p a st b e lo w In d e e d , b e lo w th e gro w th lo w a ll e c o n o m ic th ro u g h a c t iv it y ’"M ississip p i in 1970: Paddling Against the Current," this Review, M arch 1971. -This average covers the six states of Alabama, Florida, Georgia, Louisiana, M ississippi, and Tennessee. FEDERAL RESERVE BANK OF ATLANTA 155 h a s . b e e n , it w i l l t a k e m a n y M is s i s s i p p i 's per c a p ita n a t io n a l a v e ra g e .3 T h e g r o w in g to o , c atch in up, w h ic h sh e n a t io n a l m u st an d in s e v e r it y th e stru c tu ra l r e c o g n iz e d . That th e a g r ic u ltu r e , m o re an d had its to 1 9 3 0 's r u r a l. u n t r a in e d th e an d S t a t e 's th e w orke rs w e re w a y a a p la n w as w it h m o re and le s s f le x e d o b je c t in d u s try — o f an y B A W I, k in d e it h e r s u b s t a n t ia l f e r t ile c r o p la n d p r o x im it y to it p o o l had— a th e re fo re , o f in d u s tr y . m in e r a l in th e in d u s t r ia l s u p p le m e n t e d a d v an tage s jo b s fo r The been o f o ff th e as w as to a ttra ct w it h re so u rce s (e x c e p t fo r or m ark e ts, an to is p ro gra m s t ill th e State u se d w h at la b o r — in d u s t r ia l in d u s t r ia l to w h at r e m a in s th ro u gh p r o s p e r it y fo u n d a la n d s c a p e p la n ts w o rke rs have tra d e , e v o lv e d O n e to an d w ill le ft o u ts id e e m p lo y m e n t m a n u fa c tu r in g w a s s u c c e s s fu l. b o n d th e an d m o m e n tu m h a n d le fo r th e any v is it o r w it h A n d w h o lig h t m an y in a lit t le in d u s tr y th e u n e m p lo y e d ru ral m o re fa r m in g th a n 10 a R e a liz in g w it h t h is , to m in d s fo c u s w h at has lig h t can be d o n e to h e lp s k e le t o n o f w it h in th e fle s h s e r v ic e s of an d go v e rn m e n t, su p p o rt th e m a n u fa c tu r in g a t t r a c tio n d r a w in g th e u n d e rsto o d . e ffo rts m a n u fa c tu r in g , r e c e n t ly , p u llin g co u n try . T he in o f, a an d lig h t w h ic h have ta k in g w o rke rs th e re fo re , p r o b le m s te n d e d jo b s in t o to o f th e u rb an M is s is s ip p i u rb an to has The no has not had c o n g e s tio n o th e r p a rts o f th e c o u n try . In n o w its rath e r U n til to th e n e w r ig h t th is been su cce ss th e State are a s k in g , in M is s is s ip p i to s h a r e o f t h e n a t i o n 's up w it h cu rren t S tate to , fo c u s co n ce rte d her th e pace n o w is o f o f c it iz e n s ' re st o f th e e c o n o m ic b o th r e t h in k in g th e is by no p ro gra m e v id e n c e e c o n o m ic m ean s has yet s e t t le d been p a st 35 is in d u s try . p la n t s but in d u s t r ie s a g r ic u ltu r e ye ars, sh e h ig h e r -w a g e are n o w to w e lc o m e , s h o u ld h e r s ig h ts fa c t o r ie s be s k ills , a n d u t iliz in g race th e b e g in n in g are b e in g fo r to ta k e n in d u s try P u b lic in d u s t r ie s . t e c h n ic a l se e a In s h ift t h is e d u c a t io n , is n o w a t t r a c tin g A aro u n d in r e la t iv e ly s c h o o ls , se t lo n g w id e ly th e n e w n e w up to e m p h a s is o f jo b s. State e m b r o ile d te ach in as w o rke rs o f to to u gh e r r e c o g n iz e d sy ste m n e w h ig h e r a p a r t ic u la r in an d h ig h e r -p a y in g are w it h d e m a n d in g n u m b e r o f j o b s to t h e q u a lit y q u e s tio n , keys to to as le a d e r s h ig h e r t e c h n o lo g y . are w e pay, her an d b a la n c e d h ig h e r le a g u e . and in d u s t r y d u r in g s h ift in g A p p are l s t ill th e y n o w o ffe r in g th e y e t, a cc e p te d , o f t h e o u t lin e s a r e c le a r . J u s t a s M is s i s s i p p i h e r s ig h t s f r o m A c tio n s in d u s w o rke r g h e tto s. p a r it y stro n g sp u r co m p e te d is p e r s e to 10 stra te gy . fro m b ase . M is s is s ip p i's liv in g o f th a n sa y th at a lr e a d y la r g e o f th e re a cc o u n t le s s n e w .p r o b le m s , th e re b y an d in d u s t r y . p o s t a d is p r o p o r t io n a t e ly g a in s , are p e rc e n t th ro u gh o u t o n a s u p p ly , n o w lit t le se n se , have th e la b o r in s t it u t io n s an d a g r ic u ltu r e b a la n c e d A g r ic u l lig h t W it h m o re B a la n c e co u n te d th e p o p u la t io n M is s is s ip p i's f u lly s a y in g , w it h in f in a n c e , w id e ly but C h a lle n g e s p e r c e n t o f h e r j o b s , 4 it s e e m s f a i r t o s e m b ly se arch f a c e t o f t h i s s u c c e s s , m o r e o v e r , is o n l y b e c o m in g has a lth o u g h M is s is s ip p i State , p e rh ap s, be th e p r o b le m . o n ly but so m e In d u s t r y d o tte d agre e. ru ral th e as M is s is s ip p i in d u s t r ia l fo r o f fro m M is s is s ip p i's an d a t t r a c tio n revenu e M is s is s ip p i, an d m u st ro o m u n d e r e m p lo y e d a c t iv it y ad v an tage o u s n o n u n io n s p e c ific c a m p a ig n a ttra c te d m an y w it h h a rn e ss s h ift e d m a n u fa c tu r in g w it h T h e re sta n d a rd b le s s e d lo w - w a g e it w i t h su ch B A W I p asse s th a n to e ffe c t, fin a n c in g . tr ia l In d u s t r y b e g in n in g to N o t D e lt a ) sp a re d b le s s in g s , e c o n o m ic T he an d has u rb an a n n iv e r s a r y , th e n , th e W it h th e fo u n d w h ic h m e c h a n iz e d an d fa rm . o f W e ll- d is g u is e d its 3 5 t h tu re in g th e u s in g p r o v id e O n but a ll c o tto n M is s is s ip p i to b e in g B a la n c e on by n a t io n m u s c le s , n o o f n e v e r t h e le s s . succe ss. V ir t u a lly b e c o m in g p r o d u c t iv e , of im b a la n c e . d o m in a t e d A s as 1937, le g a c y c le a r ly t h is : M o s t jo b s in d u s t r ia l b a s e th u s a p ro gra m , w as a lth o u g h in d u s t r ia l an d saw p ro d u ce. a lm o s t n o p o llu t io n . b le s s in g s re so u rce s h e ad ach es n atu re ago w as ( B A W I) tu rn , w a s w h ic h , la b o r p a r t ic ip a t e her th e co n ce n trate d le s s ex p an d e d sh e in lo n g to c o rr e c t a s p e c ific w as F a r m in g , th e D e p r e s s io n , fir s t m in e r a l th e S u c c e s s B r in g s N e w im b a la n c e year o f p o p u la t io n fa rm . G re at In d u s t r y d e s ig n e d p r o b le m is to o f o f p r o p o r t io n a lly r e c o g n iz e d p r o b le m s . A s th e W it h th a n la c k m an y in c o m e M is s is s ip p i m o re lo n g e c o n o m ic A g r ic u ltu r e T he o f p e r c a p ita fo r her th e gro w th . have o f th e se m id d le o f a c t io n sh a re it b e f o r e ap p roach e s n a t i o n 's m ean s e c o n o m ic M is s is s ip p ia n s m a n y y e a r s lik e in c o m e th e o n e of an d v o c a tio n a l- s p e c ific s k ills co p e a s s o c ia te d a s im ila r se n se , 4The M arch 1970 Census found 261 thousand persons, 12 percent of M ississip p i's 2.2 m illion population, living on farms. W ith regard to jobs, 47 thousand or V percent of the State's 725 thousand em ployed workers regarded farming as their principal econom ic activity. This figure is low, however, because the Census occurred during a slack farming season. The M ississippi farm em ployment totals published by the Department of Agriculture were 133 thousand for 1970 and 102 thousand for mid-1972. This series covers all persons w ho spend one hour or more w orking on a farm during a survey week, rather than just those w ho regard farm work as their primary occupation. 62 3H ow many years? The M ississippi Research and Developm ent Center has its eyes fixed on the target year 2000. U. S. Department of Com m erce experts are more pessimistic, prophesying that M ississip p i's per capita income will reach 72 percent of the nation's by 1990. (See Survey of Current Business, A pril 1972.) Crude regressions run at the Federal Reserve Bank of Atlanta suggest equality near the year . 2100 156 SEPTEMBER 1972, M O N T H L Y REVIEW ______ M SSKSIW EC N M S OO Y A c c e le ra te d in to 1 9 7 2 . . . P e r s o n a l In c o m e C r e w r m m 8% between 1970 and 1971, then grew I 122% N o n fa r m m * 3m T h e E m p lo y m e n t B r e w between 1970 and 1971, then grew from 1971 into 1972. U n e m p lo y m L O from 1971 into 1972. 4.9% e n t R a le F e ll in 1970, down to . in 1971, then to 42% in 1 7 92 nL ' AT THE BAN KS; D e b it s G r e w between 1970 and 1971, then from 1971 into 1972. lo a n s G r e w between 1970 and 1971, then 14% from 1971 into 1972. Personal income growth, at seasonally adjusted annual rates, reflects Department of Commerce statistics for Fourth Quarter 1970 and 1971 and First Quarter 1972. Other growth rates, based on the "Sixth District Statistics" in previous issues of this Review, were calculated similarly except that Second Quarter statistics were used for 1972. for specific industrial developm ents, is n ow cop yin g the success of several other Southern states. G ro w th Centers The focus is shifting, too, tow ard M ississip p i's m ore densely populated areas. H ighe r-w age in dustries look both for larger p o ols o f skilled labor and for the services, am enities, and cultural attrac tions that urbanized areas find it easier to offer. The focus o f industrial attraction is shifting, specifically tow ard tw o grow th centers: Jackson and the G u lf Coast. The capital area around Jackson, boasting a central location and the best transportation c o n nections in the State, has en ough population in her environs (300,000) to warrant her em ergence as an industrial focal point. Jackson is not basically a regional distribution center, however; her products flo w to national markets. This fact is illustrated by tw o recent plant announcem ents, an au tom obile w irin g assem bly plant (of the traditional light industry type) and an agricultural im plem ent center (of the higher-w age, higher-technology variety). M o d e rn convention facilities are m u sh room ing, and a new m erchandise mart facility shou ld shortly provide a convenient m arketing center for the apparel and furniture plants scattered across the State. Jackson has gro w in g pains and is b egin n in g to feel the press o f urban problem s. But the city has room to grow , and a resurgence of civic awareness evidenced by a path-breaking capital im provem ents program strengthens the odds that Jackson's steady grow th will continue into the 1970's and 1980's. It is the G u lf C oast area, c o m p risin g the cities of Biloxi, G u lfpo rt and P a sca gou la-M o ss Point, w hich has show n m ore spectacular grow th, however. The C o ast is characteristically distinct from the rest of the State: Its heritage is French a la southern Louisiana; its population is predom inantly white; and its transportation ties lie east to M o b ile and w est to N e w Orleans. Long the State's major tourist and convention area, the G u lf C o a st also boasts the highest per capita incom e in M ississip p i and her only pocket o f heavy industry— the Pascagoula sh ip b u ild in g com plex. Fortunes in the Coastal area have ebbed and flow ed in recent years. Hurricane C am ille lashed the C o ast in 1969, but resort facilities and fishing activities have been reconstructed and rem odern ized. M o re recently, substantial sh ip b u ild in g activity swelled by the N avy's 47-destroyer contract has dom inated the Coastal econom y, sparking w hat can o nly be characterized as an eco n o m ic boom . D o w n through the list of eco n o m ic statistics, Pascagoula specifically, and the C o ast area m ore generally, lead the State. The boom , like all boom s, has brought difficul ties. C ivic services and sch ools in the Pascagoula 158 area have been strained to acco m m o d a te the influx of new workers. M a n y o f them, in fact, have decided to com m u te across the state line from M o b ile , where facilities are not so overtaxed and where urban am enities are m ore readily available. W h a t this m eans is that M ississip p i is sharing the benefits and the headaches of the b o o m w ith Alabam a, where m uch o f the incom e earned in Pascagoula gets spent. M oreover, with the m em ory of N A S A 's upsurge and later decline in sp e n d in g very m uch in mind, the Navy destroyer contracts have been slow to attract the kind o f support-industry or retail-andservice activity that typically accom p anies such a bo om in prim ary industry. For these reasons, the G u lf C o a st probably requires the sam e search for new industry, inde pendent of ship build in g, to balance the co n ce n tration already there. Tourism and com m ercial fishing are tw o o b vio u s possibilities for diversifica tion, but rapid expansion in these tw o industries faces the obstacle o f a turgid, pollu tion -p ron e coastal reef. So, the C o ast is co m p e tin g with Jackson, for different reasons, in the sam e higher w age industrial attraction market. A n n o u n c e d plans for a large natural gas refinery near Pascagoula evidence a recent success. O th e r Areas It w ou ld be unfair not to m ention tw o other M ississip p i grow th areas, even though they lie outside the boundaries of the Sixth Federal Reserve District. G ains have been significant both in the northwest corner next to M e m p h is and also in the n e igh b o rh o o d of Tupelo, w hich has broken away from its dependence on Delta cotton to m o un t an im pressive bootstrap program o f industrial attrac tion. Econ om ic planners are p oin tin g to T up elo as a m odel for other sm aller cities in M ississippi. W h a t of these sm aller cities? Can they match the pace o f Jackson and the G u lf C o ast and the n ear-M em ph is area? There are several possibilities for a positive answer. First of all, new light industry w ill still have an im portant role to play in p ro vid in g m anufacturing em ploym ent, in exactly the w ay that these industries have raised M ississip p i's standard o f living in the past. Then, too, there is n oth ing to prevent M iss is sippi's other sm aller cities from em u latin g T up elo to provide new bases for industrial growth. The third and m ost im portant reason, interest ingly enough, brings us full circle. W e have seen the success of M ississip p i's effort to balance her traditional cotton-oriented agriculture w ith industry, and we are n ow seeing m ore interest in attracting higher-w age, higher-tech no logy industry. So, agri culture itself, especially in the fertile areas alo n g the M ississip p i River, offers a valuable econ om ic SEPTEM 1972, M BER ONTHLY REVIEW resource for raising and dispersing M ississip pi incom e. C o tton cultivation provides an anchor, and will continue to provide an anchor as lon g as Federal price subsidies remain in place. How ever, soybeans represent the State's m ost valuable and fastestgro w in g cash crop. M ississip p i's share of national production is not so large as to preclude a su b stantial im provem ent of the share she provides, and in turn to capture a bigger slice, of the m any industrial processes w hich M ississip p i soybeans now pass through outside the State. Fruits and vegetables offer another prospect for an expanded processing industry. So does the newer techn ology now perm eating the State's oak and pine w o o d products in the eastern part of M ississippi, where particleboard plants, in particular, have been reaping the Bank A n n o u n c e m e n ts benefits of a national h ousing boom . Fifty years from now, w e may find that M ississip pi has com e full circle back to agriculture— a new, m ore sophisticated agriculture— as a prim ary eco no m ic base. A Q u ick R ecap Thus our 1972 survey of the M ississip p i eco no m y finds a strong recovery all across the State, with incom es and em ploym ent sh o w in g substantial gains. Looking m ore closely at the structure o f the State's industrial base, we detected a shift in em phasis tow ard attracting higher-w age, highertechnology industry. Jackson and the G u lf Coast, as relatively urbanized areas, stand to be the in dustrial focal points o f the 1970's and 1980's.B J Morthland, chairman; B. F. Wilson, president; . R. P. Morthland, vice president; and Schuster Siegel, vice president and cashier. Capital, $200,000; sur plus and other capital funds, $300,000. August 10, 1972 H EN RY C O U N TY BAN K Abbeville, Alabama August 1,1972 B A N K O F R IV E R V IE W Riverview, Florida Opened for business as a nonmember. Officers: Charles R. Westfall, president; and Archie H. Jones, vice president and cashier. Capital, $450,000; sur plus and other capital goods, $300,000. August 1, 1972 Opened for business as a nonmember. Officers: Donald F. Oakley, president; and Guy F. Medley, vice president and cashier. August 15, 1972 T H E A M E R IC A N B A N K St. Petersburg, Florida Opened for business as a nonmember. C A R R O LLT O N STA TE BAN K Carrollton, Georgia August 18, 1972 Open for business as a nonmember. Officer: Paul B. Christenbury, president. August 1, 1972 T H E P EO PLES B A N K A T SELM A M A LL, N A T IO N A L A S S O C IA T IO N Selma, Alabama Opened for business as a member. Officers: Rex FEDERAL RESERVE BAN OF ATLAN K TA BAN K O F TH E SO U TH EAST Birmingham, Alabama Opened for business as a nonmember. Officers: W. Cassell Stewart, chairman; C. Pratt Rather, Jr., president and chief executive officer; J Gaston . Demonson, vice president and cashier; and Howard W. Cater, Jr., assistant vice president. Capital, $1,000,000; surplus and other capital funds, $1,000,000. 159 BANKING STATISTICS Billion $ -3 2 C R E D IT * - — 34 D E P O S IT S ** 30 28 — 26 -2 4 — 14 -1 8 - 10 - -1 4 8 Os - 8 Time Other Securities Savings U.S. Govt. Securities -4 - 4 I I i i i i I i it l I I I i i i i i i i I i i i M i i I i i I I I i i J J DJ J 1971 1972 LATEST MONTH PLOTTED: JU LY * Figures are for the last Wednesday of each month. ** Daily average figures S IX T H D J A 1973 J J 1971 i I i I i I i M DJ i i I l I J 1972 i I I D J A 1973 D IS T R IC T B A N K IN G N O T E S CREDIT AT SIXTH DISTRICT MEMBER BANKS % Change, Annual Rate, December 1971 to June 1972 DISTRICT ................................ A L A B A M A ................................ Anniston-Gadsden . . . . Birmingham ...................... Dothan ................................ Mobile ................................ Montgomery ..................... FLORIDA ................................ Jacksonville ...................... Miami ................................ Orlando . ........................... Pensacola ........................... Tampa-St. Petersburg . . M ISSISSIPPI*........................... Jackson ................................ Hattiesburg-Laurel-Meridian Natchez . . . . . . . Loans 22.0 17.6 20.4 15.6 19.0 12.6 15.4 21.8 21.0 20.8 30.7 30.0 19.6 17.5 18.6 21.8 6.6 Investments 17.0 6.8 1.0 1.8 7.3 20.7 15.7 20.2 20.0 18.3 31.5 14.3 18.9 28.4 39.0 7.5 15.3 Loans Investments GEORGIA ......................................28.8 16.5 Atlanta ......................................29.2 18.2 A u g u s t a ......................................28.4 19.6 Columbus ................................ 18.4 20.1 Macon ......................................24.6 19.8 Savannah ................................ 21.8 42.7 South G e o r g ia ........................... 24.9 9.9 LOUISIANA* ................................ 13.0 Alexandria-Lake Charles . . 19.2 Baton R ouge.................................10.0 Lafayette-lberia-Houma . . . 3.2 New O r l e a n s ........................... 19.6 7.1 7.8 1.5 13.0 8.5 TEN N ESSEE*.................................23.6 Chattanooga ........................... 21.0 K n o x v ille ......................................14.6 Nashville ................................ 26.4 T r i-C ities......................................17.6 10.6 — 9.8 6.0 16.1 5.3 Note: Figures shown (not seasonally adjusted) are for trade and banking areas, which include several counties surrounding central cities. Boundaries of some areas do not coincide with state lines. *Trade and banking areas in Sixth District portion of state. 160 SEPTEM BER 1972, M ONTHLY REVIEW D IS T R IC T B A N K S : L O A N S A N D D u rin g the first half of 1972, District m em ber banks expanded their loans and investm ents (bank credit) by $2.4 billio n — an all-tim e record volum e. This expansion in bank credit represents a seasonally adjusted annual increase of over 20 percent, alm ost twice the national rate. A n exceptionally strong loan grow th accounted for the bulk o f this increase in bank credit, with m em ber banks a d d in g over $1.7 billion in loans— equal to a 22-percent1 increase. Dollarw ise and percentagew ise, total loan grow th w as greater than that achieved in the first half of any other year and equaled 90 percent of total loan grow th du ring all of 1971. M oreover, the dollar increases in total loans were greater than in any year prior to 1971, still another indication of the recent loan strength. W h ile m em ber banks were trying to satisfy strong loan dem ands, they also increased their investm ent h o ldin gs by 18 percent. The entire $.7-billion invest m ent increase w as centered in state and m unicipal securities as m em ber banks follow ed expected sea sonal patterns by slightly reducing their h o ldin gs of U. S. G overn m e nt securities. Strong loan grow th w as not lim ited to the largest m em ber banks but took place at m ediu m - and sm all-sized banks as well. Loan grow th at the 32 largest banks averaged 23 percent, and at the re m aining 536 banks, 21 percent. Sm all banks (those with total deposits of $25 m illion or less) increased their total loans by slightly over 20 percent. Loan grow th w as broadly distributed throughout the District, ranging between 13 percent for the District portion of Louisiana (southern half) and 29 percent for Georgia. A m o n g individual trade and ban king areas, O rla n d o led the w ay (see table on previous page). As one m ight expect, the greatest dollar grow th occurred in the " b ig three" loan categories— real estate loans, consum er loans, and business loans. Each of these increased by roughly $.5 billion, and, together, m ake up nine-tenths of the District's m e m ber bank total loans. W h ile real estate loans and consum er loans have show n continued strength since last year, the strong advance in business loans is in sharp contrast with last year's sluggish per form ance. Business loan dollar grow th achieved du ring the first half of 1972 alm ost equaled that du ring all of 1971. Percentagewise, the category, loans to other fi nancial institutions, show ed the largest rise; and loans to farmers, the smallest. The " b ig three" fell in-between. 'For consistency, all percentages in this article have been expressed as annual rates. Unless indicated, data have not been seasonally adjusted. FEDERAL RESERVE BAN OF ATLAN K TA IN V E S T M E N T S E X P A N D S H A R P L Y MEMBER BANK LOANS chg., A n n . ra t e o f D e c . ’71 to J u n e ’7 2 ■ Business ■ Consumer □ Real Estate - 40 10 Ala. Fla. Ga. *Sixth District portion La.* Miss.* Tenn.* Dist. MEMBER BANK LOANS INCREASE RAPIDLY 18% Real estate 28% Business Consumer 17% 1-4 family Instalment 19% residences 25% 26% Automobile 29% Mobile home Multifamily 14% Single payment residences 80% Farm 10% Nonfarm Financial 34% 25% nonresidential institutions Note: Figures shown represent percentage changes, at an annual rate, between December 1971 and June 1972. Several subcategories are omitted. Tw o categories of real estate loans— those se cured by 1 to 4 fam ily residential properties and those secured by nonfarm , nonresidential properties (e.g., business, industrial, fraternal, or church)— each were up one-fourth and were responsible for m ost of the dollar increase in real estate loans. This growth in real estate loans was vigorou s in all District states. Business loan gains (seasonally adjusted) at the 32 largest m em ber banks, w hich account for half of the outstanding m em ber bank loans, were more than twice the national grow th rate. Reports on the first half of 1972 from 23 large banks (who report by borrow er's business) indicate that the categories experiencing the greatest increases were construction (up 48 percent), service (up 28 per cent), and trade loans (up 24 percent). M in in g was the only category that show ed a decline. C on su m e r instalm ent loans, w hich account for nearly three-fourths of m em ber bank consum er loans, advanced 19 percent. A u to m o b ile loans m ade up m ore than half of the dollar increase in total consum er instalment lending; m obile hom e lend ing, an ever-grow ing portion of bank consum er in stalm ent debt, registered the greatest percentage increase. JO SEPH E. R O S S M A N J R . Note: A more detailed tabulation of changes in loans, derived from the Reports of Condition, is available on request. 161 Sixth D istric t S tatistics S e a s o n a lly A d ju s t e d (All data are indexes, unless indicated otherwise.] One Two Latest Month Month Months 1972 Ago Ago One Year Ago SIXTH DISTRICT INCOME AND SPENDING Manufacturing P a y r o lls ................ Farm Cash R eceip ts........................ C r o p s ........................................... Livestock ................................... Instalment Credit at Banks* (Mil. $) New Loans .................................. Repayments.................................. ALABAM A INCOME Manufacturing Payrolls Farm Cash Receipts . EMPLOYMENT Nonfarm Employment Manufacturing . . Farm Employment 162 One Year Ago Unemployment Rate (Percent of Work Force) . . Avg. Weekly Hrs. in Mfg. (Hrs.) . July . June . June 146 135 151 138 146 114 151 107 144 133 140 139 134 135 167 130 . July . July 447 416 452 392 465 404 116 108 108 101 105 107 111 115 104 108 103 111 108 116 125 101 119 109 116 119 125 124 98 127 86 116 108 109 102 105 105 111 115 104 108 102 110 104 117 125 102 119 109 116 119 125 124 98 126 86 116 108 108 103 105 105 110 115 105 107 102 111 106 118 123 101 119 111 116 119 125 123 100 125 90 113 106 107 101 103 107 108 114 105 104 99 107 104 116 116 103 114 107 112 116 121 119 99 119 88 4.3 4.2 4.3 4.8 2.4 41.0 189 251 127 173 87 125 271 233 186 268 286 215 163 297 318 193 184 181 205 270 409 708 407 2.4 41.1 195 247 143 168 86 123 269 234 185 266 290 215 164 299 311 193 183 185 200 267 398 650 413 23 41.0 238 259 217 176 85 124 268 231 184 264 287 211 164 294 314 190 179 187 202 266 395 652 425 2.8 40.6 172 181 164 168 89 127 254 219 177 243 278 200 166 261 296 174 177 166 211 241 386 614 389 . July July 184 170 181 168 177 1.65 154 141 . July . July . July 169 150 191 165 145 192 166 148 184 146 130 165 , July July 5.6 40.8 5.1 41.5 5.4 41.0 5.3 40.5 FINANCE AND BANKING Member Bank L oan s............... Member Bank Deposits . . . Bank D eb its**........................ . July July July 178 165 168 176 160 165 174 162 166 147 140 144 Manufacturing Payrolls . . . Farm Cash R eceipts............... July June 146 159 144 140 141 131 140 147 . July . July . July . July July 128 111 131 131 104 126 111 129 132 85 126 110 129 132 96 122 109 125 129 110 July July 3.7 41.7 3.5 41.3 3.7 41.2 4.0 40.8 July July July 201 196 185 219 194 186 210 167 165 191 144 132 144 128 131 130 381 364 EMPLOYMENT AND PRODUCTION Nonfarm Employment . . . . . July Manufacturing .................... . July Nondurable Goods . . . . . July F o o d .............................. . July T e x t ile s ....................... . July Apparel.......................... . July Paper ........................... . July Printing and Publishing . July C h e m ica ls.................... . July . July Durable G o o d s ................ Lbr., Wood Prods., Furn. & Fix.. . July Stone, Clay, and Glass . . . . July Primary M e ta ls.................... . July Fabricated M etals................ . July M achinery........................... . July Transportation Equipment . July Nonmanufacturing....................... . July Construction....................... . July Transportation .................... . July T r a d e ................................... . July Fin., ins., and real est. . . . . July S e r v ic e s ............................... . July Federal Government . . . . . July State and Local Government . July Farm Employment........................... . July Unemployment Rate (Percent of Work Force) . . . . . July Insured Unemployment (Percent of Cov. E m p .)................ . July Avg. Weekly Hrs. in Mfg. (Hrs.) . . . July Construction C ontracts*................ . July R esid en tial.................................. . July All O th er...................................... . July Electric Power Production** . . . . April Cotton Consumption**................... . June ** Petrol. Prod, in Coastal La. and Miss.- Aug. * . May .M ay Nondurable G ood s............... . May F o o d .............................. . May T e x t i le s ....................... . May Apparel ....................... Paper ........................... . May Printing and Publishing . May C h e m ica ls.................... .M ay Durable G o o d s ................... .M ay . May Furniture and Fixtures . . . May Stone, Clay, and Glass . . . May Primary M e ta ls................ Fabricated Metals . . . . . May Nonelectrical Machinery . May Electrical Machinery . . . . May Transportation Equipment FINANCE AND BANKING Loans* All Member Banks . Large Banks . . . Deposits* All Member Banks Large Banks . . . . Bank Debits*/** . . One Two Latest Month Month Months 1972 Ago Ago EMPLOYMENT Nonfarm Employment . . . . Manufacturing .................... Nonmanufacturing............... C onstruction.................... Farm Employment................... Unemployment Rate (Percent of Work Force) Avg. Weekly Hrs. in Mfg. (Hrs.) FINANCE AND BANKING Member Bank L oans............... Member Bank Deposits . . . Bank D eb its* * ........................ 191 223 GEORGIA INCOM E Manufacturing P a y r o lls....................July Farm Cash R e c e ip ts ........................June EMPLOYMENT Nonfarm Employment . . . . M anufacturing.................... Nonmanufacturing............... Construction.................... Farm Employment................... Unemployment Rate (Percent of Work Force) . . Avg. Weekly Hrs. in Mfg. (Hrs.) . . . . . July July July July July 115 104 120 110 78 115 105 120 108 80 115 105 120 108 87 113 103 116 107 82 . July . July 4.0 40.2 3.7 40.9 3.8 40.8 4.2 40.4 Member Bank Loans . . . . Member Bank Deposits . . . Bank D eb its* * ........................ . July . July . July 181 152 201 179 148 203 174 152 197 150 133 173 Manufacturing Payrolls . . . . Farm Cash R eceip ts................ . July . June 139 122 137 106 132 120 124 122 . . . . . July July July July July 107 102 108 85 83 107 102 108 86 75 107 102 109 90 85 104 100 105 82 77 . July July 6.3 42.8 5.9 42.5 5.7 41.9 6.7 42.2 . July . July . July 161 156 159 159 153 161 154 154 151 136 136 138 . July June 169 156 167 140 164 169 142 156 . . . . . 114 120 112 93 87 114 120 112 92 88 114 119 112 95 91 111 114 110 99 96 FINANCE AND BANKING EMPLOYMENT Nonfarm Employment . . . . Manufacturing .................... Nonmanufacturing............... Construction.................... Farm Employment................... Unemployment Rate (Percent of Work Force) . . Avg. Weekly Hrs. in Mfg. (Hrs.) FINANCE AND BANKING Member Bank Loans* . . . . Member Bank Deposits* . . . Bank D eb its* /* * .................... MISSISSIPPI . July . June 144 145 146 62 143 162 129 157 . . . . . 108 107 109 97 75 108 107 109 95 76 108 107 109 97 83 107 107 107 101 79 July July July July July Manufacturing Payrolls Farm Cash Receipts . . EMPLOYMENT Nonfarm Employment Manufacturing . . . July July July July July SEPTEM 1972, M BER ONTHLY REVIEW One Two Latest Month Month Months 1972______ Ago Ago One Year Ago Latest Month 1972 One Two Month Months Ago Ago One Year Ago EMPLOYMENT Unemployment Rate (Percent of Work Force) . . Avg. Weekly Hrs. in Mfg. (Hrs.) July July FINANCE AND BANKING Member Bank Loans* Member Bank Deposits* Bank Debits*/** . . . July July July 180 167 181 183 168 193 180 163 184 159 145 154 July July July July July 116 109 119 116 88 115 109 119 116 92 115 108 119 119 91 111 105 114 108 89 . July . July 4.0 40.7 3.9 40.5 3.7 40.8 4.5 40.2 . July . July . July Nonfarm Employment . . . . Manufacturing ................... Nonmanufacturing............... C onstruction................... Farm Employment................... Unemployment Rate (Percent of Work Force) . . Avg. Weekly Hrs. in Mfg. (Hrs.) 180 163 161 179 158 173 172 159 154 152 137 147 . . . . . TENNESSEE Manufacturing Payrolls...................... July Farm Cash R eceip ts........................... June 147 106 147 134 *For Sixth District area only; other totals for entire six states 137 138 “ Daily average basis FINANCE AND BANKING Member Bank Loans* . Member Bank Deposits* 1 tPreliminary data N.A. Not available Note: Indexes for bank debits, construction contracts, cotton consumption, employment, farm cash receipts, loans, petroleum production, and payrolls: 19S7 = 100. Sources: Manufacturing production estimated by this Bank; nonfarm, mfg. and nonmfg. emp., mfg. payrolls and hours, and unemp., U.S. Dept, of Labor and cooperating state agencies; cotton consumption, U.S. Bureau of Census; construction contracts, F. W Dodge Div., McGraw-Hill Information Systems Co.; petrol, prod., U.S. Bureau of . Mines; industrial use of elec. power, Fed. Power Comm.; farm cash receipts and farm emp., U.S.D.A. Other indexes based on data collected by this Bank. All indexes calculated by this Bank. D ebits to D em and D eposit A ccounts I n s u r e d C o m m e r c i a l B a n k s in t h e S i x t h D is t r ic t (In Thousands of Dollars) July 1972 June 1972 July 1971 Percent Change Percent Change Year to July date 1972 From 1972 June July from 1972 1971 1971 July 1972 116,913 53,027 129,056 57,611 141,522 29,226 735,602 1,414,660 141,513 58,223 153,930 32,090 703,277 l,508,443r 119,798 48,913 120,741 29,956 618,682r l,280,024r 148,519 90,595 148,890 22,815 105,615 51,566 31,350 47,869 123,286 84,468 14,149 8,490 60,550 49,341 15,218 31,902 158,144 80,801 164,367r 25,568 106,878 64,442 33,332r 52,104 124,304 84,361r 15,947r 8,643 56,421 50,600 16,658 30,346 171,011 80,248 130,516 16,380 97,148 49,792 28,173 36,893 119,486 75,343 13,489 8,773 57,448 48,983 15,472 26,594 . . 114,921 64.920 102,733 47,764 108,457 59,442 104,376 59,506 93,680 49,541 83,001 45,104 + 6 +23 + 15 + 9 +31 + 15 — 2 +24 + 20 20 + 6 + 8 131,110 59,088 37.556 153,635 59,516r 36,515 99,138 58,343 38,622 _ 15 + 32 + 31 . . Bristol . . . . Johnson City Kingsport . . . 116,145 146,029 216,010 128,246 154,704 226,784 113.772 136,919 195,815 2,309,264 85,051 237,308 720,533 467,933 153,345 -1 1 -10 - 2 + 0 - 1 + 3 + 20 - 5 + 8 + 20 + 8 + 5 + 24 1 + 2 + 17 + 9 + 8 - Bradenton . . Monroe County Ocala . . . . St. Augustine St. Petersburg . Tampa . . . . 601,134 306,412 508,558 252,839 2 + 8 + 16 + 30 + 18 + 27 1,621,908 220,637 214,393 3,325,793 1,235,326 208,053 173,135 2,659,702 - 7 - 3 - 11 - 6 + 22 + 3 + 10 + 17 + 16 + 6 + 18 + 23 371,080 5,191,506 1,283,001 412,144 332,795 541,333 3,009,760 884,897 287,674 4,876,063 946,022 332,883 273,079 352,667 2,525,857 751,195 8 - 4 - 7 -10 + 0 + 12 3 - 3 + 19 + 15 + 3 + 11 + 26 + 20 + 12 + 9 +22 + 24 + 71 + 100 5 + 15 + 14 + 7 Athens . . . . Brunswick . Dalton . . . . Elberton . . Gainesville . Griffin . . . . LaGrange . . Newnan . . Rome . . . . Valdosta . . Abbeville . . Bunkie . . . . Hammond . . New Iberia . Plaquemine . Thibodaux . 162,706 10,683,049 409,416 363,273 453,096 422,184 168,257 11,393,197 448,375 365,907 453,632 459,451 139.321 9,477,851 396,150 340,076 394,973 400,560 3 6 9 - 1 - 0 - 8 + 17 + 16 + 13 + 17 + 3 + 12 + 7 + 10 + 15 + 14 + 5 + 11 208,285 . . . 1,304,546 226,914 . . 195,154 . . 3,330,676 203,518 1,103,748 222,816 203,892 3,625,015 Albany ............... A tla n ta ............... Augusta . . . . Columbus . . . . M a c o n ................ Savannah . . . . Alexandria . Baton Rouge Lafayette . . Lake Charles New Orleans . . . . . _ 4 + 3 + 14 _ 1 + 10 + 12 125,106 58,800 2,749,881 90,002 263,750 864,642 508,634 157,648 “ Bartow-LakelandWinter Haven 591,631 **Daytona Beach 329,470 Ft. LauderdaleHollywood . 1,509,452 **Ft. Myers . . . . 213,535 “ Gainesville . . . 191,272 Jacksonville . . . . 3,118,999 “ MelbourneTitusvilleCocoa . . . 341,191 Miami ................ 4,998,964 Orlando . . . . 1,192,727 Pensacola . . . . 371,511 “ Sarasota . . . . 332,951 604,157 Tallahassee . . . Tampa-St. Pete . 2,909,793 W Palm Beach . 854,781 July 1971 date 7 mos. 1972 From 1971 119,906 58,121 STANDARD METROPOLITAN STATISTICAL AREAS Birmingham . . . 2,769,381 Gadsden . . . . 81,190 Huntsville . . . 257,365 M o b ile ................ 866,423 Montgomery . . . 503,880 Tuscaloosa . . . 161,626 June 1972 July 1972 from June July 1972 1971 184,761 + 2 955,593 + 18 195,397 + 2 4 183,966 3,192,523r 8 Biloxi-Gulfport . . Jackson . . . . 215,913 1,098,534 227,293 1,181,157 190,397 967,887 Chattanooga . Knoxville . . . Nashville . . . . 945,746 759,538 2,667,549 1,003,684 753,506 2,899,624 999,497 754,300 2,264,033 OTHER CENTERS Anniston . . . . 95,339 102,373 89,215 5 - 7 — + 13 + 37 + 16 4 6 4- 4 + + + + + + 13 + 13 + 14 + 12 12 14 15 10 6 6 - 5 + 1 f 1 f 1 + 6 8 + 18 + 19 7 + 7 + 10 Hattiesburg . Laurel . . . . Meridian . . Natchez . . PascagoulaMoss Point Vicksburg . . Yazoo City . District Total . . . . . . . . . . . . . . Alabama . . Florida . . . . Georgia . . Louisiana1 . Mississippi' . Tennessee' . . . . . . . 57,385,460 + 8 + 18 + 17 - 2 + 19 + 11 + + + + + + 21 17 51 78 20 16 _ 6 -13 + 12 + 13 9 + 14 - 11 +39 + 9 - 20 + 4 6 + 11 8 +30 — + 3 + 0 + 12 11 + 5 —2 - 3 + 7 + 5 —2 + 1 - 9 - 2 + 5 +20 _ + + + + + + + + + + + + + + + 17 18 19 27 5 9 1 30 14 15 8 4 10 7 8 6 9 1 8 9 5 6 — - + 3 + 1 + - 3 + 9 - 6 “ 5 + 2 + 7 + 7 + 19 + 10 + 12 59,663,900r 50,756,682r - 4 + 13 + 16 6,587,714r 5,746,886 . 6,625,552 19,600,956 20,381,692r 17,089,817 15,663,604 16,506,218r 13,845,859 6,303,560 6,421,404r 5,640,818r 2,667,168r 2,173,094 2,504,236 6,687,552 7,099,704r 6,260,208 . . . . _ + - + - 4 5 - 2 6 - 6 - + 15 + 15 + 13 + 12 + 15 + 7 + + + + + + 3 4 19 19 16 9 15 11 ‘District portion only ‘Annual Rate. Also reflects statistical adjustment for trading days. Figures for some areas differ slightly from preliminary f.gures published in “Bank Debits and Deposit Turnover” by Board of Governors of the Federal Reserve System. r *New Standard Metropolitan Statistical Areas. Data from 1964 forward available upon request. FEDERAL RESERVE BAN OF ATLAN K TA 163 D istric t B u sin e ss C o n d itio n s The region's e c o n o m y is still expanding. In July, nonfarm em ploym ent, farm incom es, and farm prices rose; construction activity declined slightly. Bank le n d in g increased m oderately. A lth o u gh consum er bo rro w in g and au to m o bile purchases grew less than they had in earlier m onths of this year, they ran w ell ahead of levels recorded a year ago. July's gains in nonfarm jobs were concentrated outside the m anufacturing sector. The em ploym ent increases were spread evenly a m o n g all n o n m a n u facturing industries. M an u factu rin g em ploym ent re m ained near its June level; however, average factory hours declined fractionally. A s a result of a sharp pickup in labor force growth, the u nem ploym en t rate rose slightly. D esp ite declines in prices of cotton, rice, and oranges, prices paid for farm products in July m oved up from the previous m onth and rem ained above year-ago levels. Soaring prices in the livestock sector accounted for m ost of the gain. In August, cattle prices appeared to w eaken, w hile broiler and e gg prices advanced and tobacco prices set record highs. Farm cash receipts continued substantially above last year's level; Florida's rate of gain c o n tinued to lead the District. It is estimated that cotton production in 1972 w ill be one-fourth higher than in 1971, with M ississip p i accou nting for m ost of the region's increase. The value of construction contract aw ards in July drifted dow nw ard. Nonresidential awards declined, since b u ild in g by manufacturers continued to lag. W ith residential m ortgage rates sh o w in g little change and inflow s at thrift institutions contin u in g at a high rate, residential aw ards were stable. W h ile co n tin u in g to grow , bank le n d in g appears to have m oderated from the rapid pace of the springtim e. B o rrow in g from the Federal Reserve Bank of Atlanta steadily increased d u ring the su m mer as the Federal funds market tightened up. M a n y of the banks outside of the largest District cities continued to attract substantial am ounts of c o n sum er time deposits, w hile the largest banks gained interest-bearing deposits by issuing large-denom ination C D 's to state and local governm ents. M a n y banks advanced their prim e lending rate from 5 V4 percent to 5 V 2 percent in late August. C o n su m e r instalm ent credit o u tstan din g at c o m mercial banks grew less vigo ro u sly in July than in recent m onths. Net extensions of both auto loans and personal loans were w eak relative to the average for the first half of the year but were above year-ago levels. Net extensions of loans for repair and m odernization and for purchases of consum er go o d s other than autos continued at high levels. Sales of dom estically produ ced autos were un usually strong for July. Note: Data on which statements are based have been adjusted whenever possible to eliminate seasonal influences. 164 SEPTEM BER 1972, M ONTHLY REVIEW
@FedFRASER