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M O N T H L Y REVIEW B U S IN E S S F E D E R A L R E S E R V E C O N B A N K O F D I T I O N S I N T H E S I X T H E R A L R E S E R V E A T L A N T A T rade After declining in June and July, retail sales by 49 reporting firms showed an increase of 24.1 per cent in August and were 6.4 per cent larger than a year ago. The decrease in July was smaller than seasonal and the increase in August much larger, and the index of sales by 28 firms which have reported over a long period of years, after seasonal adjustment, rose from 110.9 per cent of the 1923-1925 average for June to 114.1 per cent for July and to 131.8 per cent for August. This is the highest adjusted index number in the series, which began with 1919. In ventories also increased more than seasonally and were 19.3 per cent larger than for August, 1936. Wholesale trade, reported by 70 firms, declined from March through July, but increased 13.3 per cent in August, and for the eight months of 1937 has been 19.9 per cent larger than in that period last year. Department of Commerce statistics indicate that daily average sales of general merchandise in small towns and rural areas of the South declined 19.7 per cent from June to July and were 2.2 per cent larger than in July, 1936. C O N D IT IO N O F 22 M EM BER BAN KS IN S E L E C T E D C IT IE S (In Thousands ol D o llars) Sept. 15 C h a n g e From 1937 A u g .l 1,1937 Sept.16,1936 Lo an s a n d Investm ents.................................^43,727 Lo ans— T o ta l..................................................... 263,780 Com m ercial, industrial and ag ricu ltu ra l lo a n s : O n S e c u ritie s................................................. 10,867 O therw ise secured and u n secu red — 124,182 O pen market p a p e r.......... .......................... 3,747 Lo an s to brokers a n d d ea le rs in s e c u r it ie s ............................................... 7,511 O ther lo a n s for pu rch asin g or carryin g se cu rities............................. 15,715 R e a l estate lo a n s .............................................. ^6,619 to b a n k s .................................................. 5,324 Other Lo an s : _______ O n se cu ritie s....................................... .. — 25,798 O therw ise secu red a n d u n se cu re d ---44,017 Investm ents— T o ta l......................................... 279,947 U . S . direct ob lig atio n s............................. 171,261 O bligations guaranteed b y U . S ............ 33,823 O ther se cu rities........................................... 74,863 R eserve w ith F . R. B a n k ................................. 108,382 C a s h in v a u lt ...................................................... 10,241 B a la n ce s w ith dom estic b a n k s ................... 107,257 D em and deposits— a d ju ste d ......................... 330,861 Tim e d ep osits..................................................... 187,044 U . S . Governm ent dep osits........................... 15,035 Deposits of domestic c a n k s ......................... 179,683 Borrow ings : From F . R. B a n k ................... 540 From o thers............................. 311 D I S T R I C T S E P T E M B E R Retail trade in the Sixth District increased more than seasonally from July to August, and there were increases also in wholesale trade, building permits issued at twenty reporting cities, and in operations at cotton mills and cotton seed oil mills. Construction contracts awarded in the Dis trict, and pig iron output in Alabama, were somewhat smaller than in July. In the five weeks ending September 15, loans at weekly reporting member banks increased but investments declined. Demand deposits-adjusted declined, but time and Government deposits and balances of other banks increased. ‘ C oFRASER m p a r a b le fig u re s not a v a ila b le . Digitized for F E D — 758 + 1,088 , 4* .1 5 6 4- 3,320 — 686 TTqo'c m + 32,614 * 4- 16 — 1,324 , onc. 4- 2,064 — — — Z25 56 243 4- 2,593 4- 4,435 4998 — 2,192 — 1,846 — 1,588 4- 1,659 — 1,917 4- 1,960 — 1,427 4- 5,030 — 11,286 4- 7,195 4- 3,416 4- 7,374 4* 167 — 1,750 — 58,007 — 44,563 — 5,696 — 7,748 4-25,759 -f 471 — 26,287 4- 26,051 4- 9,427 — 37,909 — 25,045 4540 4311 30, 1937 B anking Principal changes in the condition of weekly reporting member banks in leading cities of the District in the five weeks ending September 15 were in creases in total loans, in holdings of guaranteed obligations of the United States, in balances maintained with other banks, in time deposits, in Government deposits, and in deposits of other banks. There were decreases in total loans and investments, in total holdings of investment securities, in some classes of loans, in demand deposits-adjusted, and in borrowings. In this period loans for commercial, indus trial and agricultural purposes increased about 3.5 millions of dollars, and loans to brokers and dealers in securities increased slightly, but holdings of open market paper, loans to banks, real estate loans and Other Loans declined. Total loans on September 15 were 32.6 millions greater than on the corresponding Wednesday a year ago. Holdings of in vestment securities declined 1.8 millions between August 11 and September 15, and were 58 millions less than on Sep tember 16 last year when they were the largest in available records. Demand deposits adjusted declined 11.3 millions in the five weeks ending September 15, after reaching on August 11 the highest level for any Wednesday, except June 23, on record. Time deposits have recently increased at mid-Sep tember to a new high level. At the Federal Reserve Bank of Atlanta member bank reserves declined from 180.6 millions on May 12 (the final increase in reserve requirements was effective May 1) to 166.3 millions on July 21, and at the middle of September were 173.8 millions. Estimates based on latest available figures indicate that this total was 26.1 millions of dollars, or 17.7 per cent, in excess of legal requirements. Discounts have recently shown a small increase, but industrial advances have continued to decline. Treasury deposits increased on September 15 but were about 8.4 millions less than a year ago, and total reserves have also increased compared with August 11, but since the middle of the year have averaged somewhat less than in the January-June period. The decline in outstanding Federal Reserve notes of this bank’s issue was offset in part by a net increase in payments into circu lation of United States Silver Certificates by the bank, its branches and agencies. F E D E R A L R E S E R V E BAN K O F ATLAN TA (In thousands of dollars) C h a n g e From Sept. 15, A u g .l 1,1937 Sept.16,1936 1937 B ills d iscou nted............................... B ills bought in O pen Market Industrial A d v a n ce s ....................... United States S e c u ritie s.............. Total B ills and S e cu ritie s........ Total R e se rv e s................................. Member Bank Reserve A cco u n t. $ 1,530 107 175 110,991 112,803 251,185 173,753 5,363 167,152 4- 105 — 'i3 4- '92 4- 1,753 4- 2,030 4- 1,877 3,753 4- 1,412 1 — 408 4-12,635 4-13,638 4- 4,113 4-35,007 — 8,355 —14,853 — B u s in e s s 2 C o n d it io n s D E B IT S T O IN D IV ID U A L A C C O U N T S (In Th ousand s of D o llars) August July 1937 1937 A LABAM A Birm ingham ..................................... $ 80,433 D o than ................................................ 3,119 M ob ile................................................ 36,591 M ontgom ery..................................... 20,137 in t h e July 1936 $ 88,369 2,654 40,335 22,226 $ 66,639 3,228 27,230 18,790 67,633 29,188 8,638 26,003 70,246 30,194 8,783 26,460 57,386 26,572 7,901 22,735 G E O R G IA A lb a n y ................................................ 4,287 A tla n ta ................................................ 172,154 A u g u sta ............................................. 15,500 B ru n sw ick ......................................... 2,621 C o lu m b u s.......................................... 13,613 E lb erto n ............................................. 948 M aco n ................................................ 13,647 N ew n a n .............................................. 1,769 S a v a n n a h .......................................... 33,130 V a ld o s ta ............................................ 9,801 4,055 177,951 17,158 2,747 14,776 1,128 14,365 1,796 33,784 4,911 3,606 159,629 15,622 2,385 12,267 876 13,621 2,191 27,980 9,030 L O U IS IA N A New O rle a n s ................................... 207,129 207,760 194,326 F L O R ID A Ja ck so n ville ..................................... M iam i.................................................. P e n sa co la ......................................... T a m p a ................................................ M ISSIS SIP P I H attiesb u rg ..................................... Ja ckso n .............................................. M e rid ia n ............................................ V ic k sb u rg .......................................... 4,988 19,616 8,888 6,128 4,872 20,168 9,766 6,822 4,181 28,984 7,801 5,907 TEN N ESSEE C h a tta n o o g a ................................... K n o x v ille ........................................... N a s h v ille ............................................ 38,519 29,560 76,185 44,953 29,297 87,084 37,271 24,668 70,877 T O T A L 26 C it ie s ......................... $930,225____________ $972,660 $851,703 A griculture The September 1 estimate of the 1937 cotton crop in the United States by the Department of Agriculture indicates the production of 16,098,000 bales, an increase of 505,000 bales or 3.2 per cent over the August estimate, and 3,699,000 bales or 29.8 per cent greater than the 1936 crop. The September estimates for the six states of this District combined total 6,092,000 bales, 3.0 per cent larger than the estimate a month earlier and 13.5 per cent larger than 1936 production in these states. Figures back to 1903 show only five years in which the crop in these six states has been larger than that estimated for 1937. The estimates by states are compared in the table. 1937 Estim ates Septem ber 1 August 1 A la b a m a ................................................ F l o r i d a .. . .............................................. G e o rg ia .................................................. L o u is ia n a .............................................. M ississip p i............................................ Te n n e sse e ............................................. S ix S ta te s......................................... 1,310,000 40,000 1,321,000 873,000 2,027,000 521,000 6,092,000 1936 Production 1,302,000 40,000 1,282,000 864,000 1,917,000 508,000 1,145,000 31,000 1,086,000 761,000 1,911,000 433,000 5,913,000 5,367,000 Spot cotton prices have continued in August and early in September to decline. The average on the ten designated spot markets on September 16 was 8.75 cents per pound, which compares with 11.24 cents on August 5, prior to the release of the first official estimate of the crop, and with an average of 12.12 cents for the month of July. July receipts from the sale of principal farm products, including livestock and livestock products and Government payments, were 18.4 per cent less than in June, but were 17.8 per cent greater than a year earlier notwithstanding a reduction of 79.6 per cent in Government payments. For the seven months of 1937, however, total receipts were 39.4 per cent larger than in that part of 1936. There was some increase from August to September in the estimates of all the principal crops in this District except tame hay, and nearly all of them are considerably larger S ix t h F ed er a l R eser v e D is t r ic t than last year. The estimated decrease in production of peaches was reduced slightly to 33.2 per cent, compared with 1936, and the estimates for peanuts and pears are also smaller. Production of pecans is estimated to be 10.2 per cent larger than a year ago. Prospects for sugar cane and rice improved during August, and the estimates for Sep tember are 1.4 per cent and 9.3 per cent, respectively, larger than 1936 production. In d u stry Employment and payrolls at 5,700 firms in the six states of this District reporting to the Bureau of Labor Statistics exhibited further small declines from June to July, but continued well above that month of other recent years. Number employed in July was 9.3 per cent, and the amount of a week’s payroll 19.5 per cent, larger than in July, 1936. Value of contracts awarded in the Sixth District in August continued at a level higher than a year ago, and building permits at reporting cities were also larger. The value of building permits increased 17.6 per cent from July to August, and was 16.1 per cent greater than in August last year. The eight months total of $45,945,918 is 4.7 per cent larger than for the corresponding part of last year, and the largest for the period since 1929. The August total was the largest for any month, excepting July last year, since May, 1929. Reflecting a decrease in factory awards in Alabama from July, value of contracts awarded in the Sixth District declined 20.8 per cent in August, but was 47.1 per cent greater than a year earlier, and for the eight months period was 14 per cent greater than in that part of 1936. Contracts for residential construction were smaller in both July and August than in those months last year, but residential con tracts reported each month from February, 1936, through June, 1937, were larger than in the corresponding month a year earlier. Increases in total awards from July to August were reported in Florida and Louisiana, and in creases over August, 1936, were reported in Alabama, Flor ida, and Louisiana. Press reports indicate the demand for lumber was irregularly lower in August, and weekly state ments of the Southern Pine Association show that orders, shipments, and production averaged less than in the cor responding weeks a year ago. Cotton mill operations in this District increased from July to August, and consumption of cotton was the largest for the month in twenty years for which statisics are available. Cotton seed oil mills crushed 44 per cent more seed in August, the first month of the new season, than a year earlier. Coal production in Alabama and Tennessee increased slightly in August and continued well above the correspond ing period a year ago. Production of pig iron in Alabama declined 2 per cent from July to August but was 58 per cent greater than a year ago, and the total for the year through August was 37.3 per cent larger than for that part of 1936, and the largest for the period since 1930. In the second week of September one blast furnace was blown out, leaving 17 in active operation. Receipts of turpentine and rosin declined in August and continued substantially smaller than a year ago. In the third week of August quotations on rosin rose sharply but they have since declined, and the price of turpentine de clined by September 13 to 30 cents per gallon, the lowest in a number of years. B u s in e s s C o n d it io n s in t h e SIX T H D IS T R IC T B U SIN E SS S T A T IS T IC S C o lle c SA LES STO CKS tion Jan.-Aug A ug. 1937 Ratio Incl. August 1937 Com pared Com pared Com pared August W ith With W ith : 1937 Y e a r Ago Aug. 1936 _____________________________ July 1937 Aug. 1936 R E T A IL TR A D E A tla n ta ........................... +43,0 Birm ingham ................... 4-27.0 Chattano oga................. 4-16.7 Montgomery................. 4-15.2 N ash ville.........................+24.7 New O rle a n s................. 4-31.2 O t h e r C itie s ................... 4- 2.7 D ISTR IC T (49 firm s). . . . +24.1 + 4.0 4*16.5 4- 7.1 4- 6.3 4- 3.1 4- 4.5 4- 6.5 + 6 .4 W H O L E S A L E TR A D E G ro ce rie s....................... Dry G o o d s..................... H a rd w a re ....................... Fu rn itu re....................... E lectrical S u p p lie s ... D ru g s............................... T O T A L (70 firm s). . . + 0.2 — 5.2 +18.5 + 5.3 +34.6 +14.8 +10.7 + 4 .4 4-64.1 +11.4 4-39.1 — 18.9 + 4.6 +13.3 A ugust 1937 C O M M ER C IA L FA IL U R E S — D IST R IC T Number (A ctu a l)................... lia b ilit ie s .................................$ 29 192 + 12.1 + 3.4 + 9.8 + 3.7 + 10.0 + 9.2 + 8.2 + + + + + + July 1937 $ 25.2 31.5 22.7 + 19.2 + 16.4 +23.7 +26.0 + 32.9 + 28.2 + 9.5 + 19.3 + 11.5 + 13.5 4.9 27.8 12.5 58.1 15.4 19.9 23.5 34.7 29.8 28.5 72.8 32.0 39.8 41.2 + 35.0 +27.2 +37.6 66.0 + 18.4 +33.2 48.5 (000 Omitted) August Jan.-Aug. Incl. 1936 1937 1936 25 310 $ 23 114 $ 233 2,274 $ 192 3,100 S ix t h F ed er a l R eser v e D is t r ic t 3 SIX T H D IS T R IC T B U SIN ESS IN D E X E S (1923-1925=100 except a s noted) Aug. 1937 July 1937 R E T A IL S A LE S * U nadjusted D IS T R IC T (28 firm s)......................................... Birm ingham ......................................................... . C h a tta n o o g a....................................................... New O rle a n s ...................................................... R E T A IL S A LE S * Adjusted D IS TR IC T (28 firm s)......................................... Birm ingham ........................................................ C hattano o g a...................................................... New O rle a n s ..................................................... . R E T A IL S T O C K S Unadjusted D IST R IC T (24 firm s)......................................... Birm ingham ........................................................ C hattano og a...................................................... , New O rle a n s...................................................... R E T A IL S T O C K S Adjusted D IST R IC T (24 firm s)......................................... Birm ingham ........................................................ C hattano og a...................................................... N ash v ille .............................................................. New O rle a n s ...................................................... , , C O N TR A C TS A W A R D ED — D IS T R IC T ...................................$ R e sid e n tial............................... A ll O th ers................................. A la b a m a ................................... F lo rid a ....................................... G e o rg ia ..................................... L o u isia n a ................................... M ississip p i............................... Te n n essee................................. 26,925 6,369 20,556 1,579 11,616 1,734 11,604 2,689 3,336 33,983 6,910 27,073 11,670 5,773 3,061 12,509 2,659 3,444 $ 18,304 8,517 9,787 1,219 7,963 2,465 1,791 4,818 4,066 $171,934 54,565 117,369 21,935 65,654 20,679 47,193 19,792 26,319 $150,814 46,847 103,967 25,812 49,317 22,464 24,187 24,025 40,707 W H O LE S A L E TR A D E (70 firm s)..................... , , B U ILD IN G PERM ITS— 20 C I T I E S ................................. $ A tla n ta ....................................... Birm ingham ............................. Jack so n v ille ............................. N ash v ille ................................... New O rle a n s ........................... 15 Other C itie s ......................... 7,398 343 221 561 895 550 4,828 1 6,292 616 325 451 377 634 3,889 6,374 240 337 508 563 794 3,932 $ 45,946 3,460 2,597 3,566 3,791 3,217 29,315 $ 43,897 3,281 1,534 2,663 6,350 3,146 26,923 A la b a m a .............................................................. F lo rid a .................................................................. 234 239 148 1,709 1,244 1,150 435 1,140 430 916 363 8,079 3,387 7,486 3,123 P IG IRO N PR O D U C TIO N — Tons A la b a m a ................................... C O A L P R O D U C TIO N — Tons A la b a m a ................................... T e n n e sse e ................................. (000 Omitted) July August 1937 1936 65 114 15 194 58 113 15 186 14 188 C O TT O N S E E D C R U SH ED — T o n s*......................................... 78 20 54 F E R T IL IZ E R T A G S A L E S —Tons 34 23 Total 6 S ta te s........................... *G eo rg ia, A labam a, Lo uisiana and M ississippi. 29 July 1937 E L E C T R IC P O W ER PRO D U C TIO N — kw Hours A la b a m a ................................... F lo rid a ....................................... G e o rg ia ..................................... L o u isia n a ................................. M ississip p i............................... T e n n essee................................. Total Six S ta te s.................. By W ater P o w e r..................... By F u e ls ................................... . * Includes Governm ent benefit 122.7 224.5 109.5 81.6 89.9 114.7 74.1 123.5 70.7 64.2 64.8 62.3 68.9r 112.7 66.3 57.6 57.0 59.3r 59.0 103.1 56.6 51.9 48.7 48.6 76.4 130.0 74.4 74.9r 123.8 69.8 61.3 61.3 62.4r 60.8 108.5 59.6 53.5 49.2 49.6 77.8 55.0 50.8 87.4 77.6 57.2 76.7 45.4 97.6 34.5 80.1 26.0 84.5 139.4 60.2 96.8 49.2 128.3 255.2 39.8 45.9 198.9 137.9 62.1 52.2 60.7 46.5 26.7 54.9 37.0 28.5 249.9 73.3 65.7 56.6 15.5 22.7 61.7 88.1 55.9 39.8 21.9 54.8 59.5 49.3 71.0 98.9 100.9 62.6 157.5 186.9 145.0 154.4 150.7 166.7 144.1 146.9 152.4 179.1 142.3 139.1 July 1937 June 1937 July 1936 152.2 94.5 149.6 124.9 117.2 139.1 137.7 154.0 99.4 149.6 125.2 117.3 141.7 139.4 136.0 83.5 133.6 109.7 108.2 128.6 126.0 236.7 80.9 196.7 155.0 160.1 179.7 182.0 241.0 83.7 198.5 154.8 161.6 184.3 185.0 186.2 70.7 165.3 129.5 146.3 154.8 152.3 294.6 384.8 214.8 589.2 104.8 208.7 287.8 208.0 376.3 301.7 369.2 235.3 594.9r 105.3r 181.9r 287.6r 305.2 295.1 191.1 535.6 94.7 181.2 265.9 261.0 271.3 . 22.2 Birm ingham ........................................................ Jackso nville........................................................ 14.9 68.2 141.1 15 Other C itie s ................................................. T en n essee............................................................ . 88.0 88.8 61.7 71.8 EM PLO YM EN T— (Av. for 1932=100) .. (000 Omitted) July Jan.-July, Incl. 1936 1937 1936 $377,782 53,441 91,401 56,605 45,050 61,226 70,059 $271,035 39,192 67,670 48,202 28,254 36,833 50,884 235,342 233,249 78,248 72,666 129,055 136,785 156,885 153,285 6,791 6,585 130,988 110,431 737,309 713,001 280,053 322,387 457,256 390,614 payments. 243,842 60,003 114,825 142,629 6,148 113,675 681,122 351,391 329,731 1,639,136 533,296 991,010 933,847 38,396 780,070 4,915,755 2,844,554 2,071,201 1,407,919 473,554 916,407 879,741 34,250 842,709 4,554,580 2,808,071 1,746,509 9,397 3,056 4,643 9,092 114.1 184.5 113.2 79.5 89.4 103.3 112 $ 27,632 4,502 1,441 7,935 2,444 3,423 7,887 2,222 131.8 233.2 128.4 89.2 92.7 119.9 83.6 91.1 87.4 CO TTO N CO N SU M PTIO N — 3 STA TES* $ 39,886 5,181 5,691 7,009 5,450 7,489 9,066 FARM IN C O M E— Six S ta te s*. $ 32,545 4,135 A la b a m a ................................... G e o rg ia ..................................... L o u is ia n a ................................. M ississip p i............................... T en n essee................................. June 1937 95.7 184.1 87.6 62.8 74.6 89.5 68.0 101.2 P IG IRO N P RO D U C TIO N — ALABAM A* 62 79.9 134.7 82.6 58.8 61.7 71.3 88.1 57.4 83.4 97.3 94.6 105.9 . C O TT O N CO N SU M PTIO N — B ales A la b a m a ................................... G e o rg ia ..................................... Te n n e sse e ................................. Total 3 S ta te s....................... 102.8 66.2 B U ILD IN G PERM ITS— 20 C itie s ..................... August Augu 1937 191.2 102.7 68.7 76.9 93.5 65.5 63.6 C O N TR A C TS A W A R D ED — D ISTR IC T R e sid e n tial.......................................................... M ississip p i.......................................................... Aug. 1936 , . M ississip p i.......................................................... , Six Sta te s........................................................ . P A Y R O L LS— (Av. for 1932=100) . M ississip p i.......................................................... ,. Six S ta te s........................................................ E L E C T R IC P O W ER P RO D U CTIO N * .. .. G e o rg ia ................................................................ M ississip p i.......................................................... T en nessee............................................................ Six Sta te s....................................................... By W ater P o w e r........................................... By F u e ls ......................................................... .. *T ___3______ - L •! ___ 1 . _ _ 1 ___ j._ _ * ________ 147Ar 332.lr cotton c o n su m p tio n a r e on a d a ily a v e r a g e b a s is . r = R e v is e d . B u s in e s s 4 C o n d it io n s INDUSTRIAL PRODUCTION in S ix t h t h e 140 130 KXJ 90 80 70 60 60 1929 1930 1931 1932 1933 1934 1936 1936 1937 In d e x o f p h y sic a l vo lu m e o f p ro d u ctio n , a d ju ste d fo r sea so n a l v a ria t io n , 1923-1925 a v e ra g e = 100. B y m on th s, J a n u a r y , 1929, to A u g u s t , 1937. FACTORY EMPLOYMENT AND PAYROLLS R eser v e D is t r ic t N a t i o n a l S u m m a r y o f B u s i n e s s C o n d itio n s PERCENT 120 110 F ed er a l P r e p a r e d b y the B o a r d o f G o v e r n o r s of the F e d e r a l R e s e rv e S y s t e m I N A ugust m o n th s s p r in g . in d u s t r ia l and on a a c t iv it y s e a s o n a lly advanced fro m th e le v e l of th e a d ju s te d b a s is w as c lo s e to th e E a r ly re p o r ts f o r S e p t e m b e r in d ic a t e s o n a l d e c re a s e in th e p r o d u c t io n P a d e c lin e in tw o p r e c e d in g v o lu m e of ste e l o u tp u t a n d la s t a sea o f a u t o m o b ile s . r o d u c t i o n a n d E m p l o y m e n t V o lu m e o f in d u s t r ia l p r o d u c t io n , a s m e a s u r e d b y t h e B o a r d ’s s e a s o n a lly a d ju s t e d in d e x , w a s 1 1 7 p e r c e n t o f t h e 1 9 2 3 -1 9 2 5 a v e r a g e in A u g u s t a s c o m p a r e d w it h a le v e l o f 1 1 4 p e r c e n t in J u n e a n d J u l y a n d 1 1 8 p e r c e n t d u r in g t h e s p r in g . S t e e l p r o d u c t io n ro s e s lig h t ly f u r t h e r a n d w a s c lo s e to t h e h ig h le v e l p r e v a ilin g b e f o r e s t r ik e s c u r t a ile d o u t p u t in J u n e . A u t o m o b ile p r o d u c t io n w a s m a in t a in e d in c o n s id e r a b ly la r g e r v o lu m e t h a n is u s u a l in t h e m o n t h p r e c e d in g t h e s h if t t o n e w m o d e l p r o d u c t io n . L u m b e r o u t p u t d e c lin e d , f o llo w in g a p e r io d o f in c r e a s e . T n t h e n o n d u r a b le g o o d s in d u s t r ie s o u t p u t in c r e a s e d in A u g u s t , r e fle c t in g c h ie fly in c r e a s e s a t c o t t o n a n d w o o le n t e x t ile m ills , f o llo w in g c o n s id e r a b le d e c lin e s in t h e p r e c e d in g m o n t h . A c t iv it y a t m e a t p a c k in g e s t a b lis h m e n t s in c r e a s e d s o m e w h a t f r o m a n e x t r e m e ly lo w le v e l. S h o e p r o d u c t io n s h o w e d le s s t h a n t h e u s u a l s e a s o n a l r is e . A t m in e s , o u t p u t o f c o a l in c r e a s e d le s s t h a n s e a s o n a lly , w h ile c r u d e p e t r o le u m p r o d u c t io n c o n t in u e d to e x p a n d . V a lu e o f c o n s t r u c t io n c o n t r a c t s a w a r d e d , a s r e p o r t e d b y t h e F . W . D o d g e C o r p o r a t io n , d e c lin e d s o m e w h a t in A u g u s t a n d t h e f ir s t h a l f o f S e p t e m b e r . A w a r d s f o r p r iv a t e r e s id e n t ia l b u ild in g s h o w e d lit t le c h a n g e a n d w e r e in a b o u t t h e s a m e v o lu m e a s in th e c o r r e s p o n d in g p e r io d o f 1 9 3 6 , w h ile p u b lic ly - fin a n c e d r e s id e n t ia l b u ild in g d e c lin e d a n d w a s in c o n s id e r a b ly s m a lle r v o lu m e t h a n la s t y e a r . In d e x e s o f n u m b e r em p lo yed a n d p a y r o lls, w ith o u t ad ju stm e n t f o r se a so n a l v a r ia t io n , 1923-1925 a v e ra g e «= 100. B y m o n th s, J a n u a ry , 1929, to A u g u s t , 1937. In d e x e s co m pile d b y U . S. B u r e a u of L a b o r S t a tistic s. MEMBER BANK RESERVES AND RELATED ITEMS BILUONSOFD OLL. 8 BILUpNSOFDOLLARS 7 6 5 GoIdStock/ F a c t o r y e m p lo y m e n t , w h ic h h a d in c r e a s e d in J u ly , s h o w e d le s s t h a n a s e a s o n a l r is e in A u g u s t . F a c t o r y p a y r o lls in c r e a s e d b y a b o u t t h e u s u a l s e a s o n a l a m o u n t . T h e n u m b e r e m p lo y e d a t s t e e l m ills in c r e a s e d s o m e w h a t f u r t h e r w h ile a t a u t o m o b ile f a c t o r ie s , r a ilr o a d r e p a ir s h o p s , a n d s a w m ills e m p lo y m e n t d e c lin e d . I n t h e t e x t ile in d u s t r ie s e m p lo y m e n t in t h e p r o d u c t io n o f f a b r ic s d e c r e a s e d s o m e w h a t , w h ile e m p lo y m e n t in t h e p r o d u c t io n o f w e a r in g a p p a r e l in c r e a s e d . C h a n g e s in e m p lo y m e n t in m o s t o t h e r m a n u f a c t u r in g in d u s t r ie s w e r e s m a ll. A g r i c u l t u r e D e p a r t m e n t o f A g r i c u lt u r e c r o p e s t im a t e s b a s e d o n w e r e a b o u t t h e s a m e a s t h e e s t im a t e s a m o n t h e a r l i e r , e c o t t o n a n d a d e c r e a s e in c o m . O u t p u t o f le a d in g c r o p s is la s t s e a s o n . S u p p lie s o f liv e s t o c k a n d m e a ts a r e e x p e c t e A g r ic u lt u r e to c o n t in u e s m a lle r t h a n la s t y e a r . D S e p t e m b e r 1 c o n d itio n s x c e p t f o r a n in c r e a s e in s u b s t a n t ia lly la r g e r t h a n d b y th e D e p a rtm e n t o f i s t r i b u t io n M a i l o r d e r s a le s a n d s a le s a t d e p a r t m e n t s t o r e s s h o w e d s o m e w h a t le s s t h a n t h e u s u a l s e a s o n a l in c r e a s e f r o m J u ly to A u g u s t . F r e ig h t c a r lo a d in g s c o n t in u e d a t t h e le v e l o f t h e p r e v io u s m o n t h . 3 R ere rvd*itF*in jcsC ik ^--" Currency 1---r~ 1934 1935 2 O 1936 W e d n e s d a y fig u re s. 1937 J an u a ry 1934 1935 3, 1934, 1936 1937 to Sep tem b er 22, C P o m m o d i t y r i c e s C o t t o n p r ic e s d e c lin e d c o n s id e r a b ly f u r t h e r f r o m t h e m id d le o f A u g u t h ir d w e e k o f S e p t e m b e r a n d th e r e w e r e s m a lle r d e c r e a s e s in c o t t o n g o h id e s , s t e e l s c r a p , c o p p e r s c r a p , a n d lu m b e r . P r ic e s o f liv e s t o c k a n d p r o d u c t s , a f t e r s o m e d e c lin e in t h e la t t e r p a r t o f A u g u s t a n d t h e f ir s t S e p t e m b e r , a d v a n c e d s h a r p ly in th e m id d le o f S e p t e m b e r . s t to th e o d s , s ilk , liv e s t o c k w eek of 1937. B a n k C r e d i t E x c e s s r e s e r v e s o f m e m b e r b a n k s i n c r e a s e d i n t h e f iv e w e e k p e r i o d e n d i n g S e p t e m b e r 2 2 f r o m $ 8 0 0 ,0 0 0 ,0 0 0 t o $ 1 ,0 0 0 ,0 0 0 ,0 0 0 a s t h e r e s u l t o f a r e le a s e o f g o ld b y th e T r e a s u r y f r o m it s in a c t iv e a c c o u n t . T h e b u lk o f th e in c r e a s e in e x c e s s re s e rv e s w e n t to N e w Y o r k C it y b a n k s a n d o n S e p te m b e r 2 2 th e s e b a n k s h a d e x c e s s re s e r v e s o f $ 3 5 0 ,0 0 0 ,0 0 0 , C h ic a g o b a n k s h a d $ 5 0 ,0 0 0 ,0 0 0 , a n d banks e ls e w h e r e $ 6 0 0 ,0 0 0 ,0 0 0 . C o m m e r c ia l lo a n s a t r e p o r t in g m e m b e r b a n k s in 1 0 1 le a d in g c it ie s , r e fle c t in g in p a r t s e a s o n a l d e m a n d s , c o n t in u e d to in c r e a s e s u b s t a n t ia lly d u r in g t h e f o u r w e e k s e n d in g S e p t e m b e r 1 5 , b o t h in N e w Y o r k C i t y a n d o u t s id e . H o ld in g s o f U n it e d S t a t e s G o v e r n m e n t o b lig a t io n s a n d o f o t h e r s e c u r it ie s s h o w e d a f u r t h e r d e c re a s e , w it h th e r e s u lt t h a t t o t a l lo a n s a n d in v e s m e n t s d e c lin e d s o m e w h a t. M W e d n e sd a y fig u re s o f e stim ate d excess rese rv e s f o r a ll m e m b e r b a n k s a n d f o r N e w Y o r k C it y , J a n u a r y 6, 1932, FRASER to Sep tem b er 22, 1937. Digitized for o n e y R a t e s R a t e s o n 9 - m o n t h T r e a s u r y B i l l s d e c l in e d f r o m 0 .7 1 p e r c e n t e a r l y i n S e p t e m b e r t o 0 .4 4 p e r c e n t la t e r in t h e m o n t h , a n d a v e r a g e y ie ld s o n lo n g - t e r m T r e a s u r y N o t e s d e c lin e d f r o m a b o u t 1 % p e r c e n t to b e lo w 1 % p e r c e n t .
@FedFRASER