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MONTHLY REVIEW B U S IN E S S FED ERA L RESERVE C O N D IT IO N S IN T H E S IX T H R E S E R V E D IS T R IC T BAN K O F ATLA N TA S e p te m b e r 3 0 ,1 9 3 8 Substantial gains in trade and industrial activity from July to August are indicated in available statistics relating to the Sixth Federal Reserve District. Retail trade increased considerably more than the usual seasonal amount, and wholesale trade increased slightly more than usual. Con struction contracts awarded in August increased about 29 per cent when they usually decline at that time and August awards for residential construction were the largest in more than nine years. Building permits and cotton textile activity increased much more than usual in August, and output of Alabama blast furnaces increased substantially over July and was the largest since April. Trade August sales by 49 reporting retail firms in the Sixth District increased 32.5 per cent over July and were slightly larger than in August last year, and stocks increased 11.2 per cent over the month but were 7.9 per cent less than a year earlier. On a daily average basis, sales in July, which had 25 business days, had declined less than seasonally, and in August, which had 27 business days, daily average sales increased considerably more than the seasonal amount. After adjustment for the usual seasonal changes, the index of daily average sales rose from 104.3 per cent of the 1923-1925 average for June to 113.4 per cent for July, and 128.2 per cent for August. Total sales in the January-August period were 3.9 per cent less than in that part of last year. Preliminary reports for the first three weeks of September indicate a further increase of more than seasonal propor tions over August, but a decrease of about 6 per cent com pared with that period a year ago. Wholesale trade in the Sixth District, according to reports by 145 firms to the United States Department of Commerce, increased 15.8 per cent from July to August, and was 10.7 C O N D IT IO N O F 2 2 M EM BER BA N E S IN S ELE C TED C IT IE S (I n T h o u s a n d s of D o lla r s ) S e p t. 14, 1938 L o a n s a n d I n v e s tm e n ts — T o t a l ............... . . . $ 5 6 2 ,0 0 8 L o a n s — T o t a l........................................................... . . . 2 8 4 ,4 3 2 C o m m e r c ia l, i n d u s tr i a l a n d a g r i c u l t u r a l l o a n s .................................... .. 1 5 4 ,4 2 6 2 ,4 3 5 O p e n m a r k e t p a p e r ...................................... L o a n s to b r o k e r s a n d d e a l e r s 6 ,0 9 9 in s e c u r i t i e s ................................................... O th e r l o a n s fo r p u r c h a s i n g 1 4 ,5 8 5 o r c a r r y i n g s e c u r i t i e s ............................ 2 7 ,8 8 9 R e a l e s t a t e l o a n s ........................................... . . . L o a n s to b a n k s ................................................ ., . 3 ,1 9 0 O th e r l o a n s ........................................................ 7 5 ,8 0 8 2 7 7 ,5 7 6 In v e s tm e n ts — T o t a l........................................... U. S. d ir e c t o b l i g a t i o n s ............................ . .. 1 4 9 ,4 5 0 O b lig a tio n s g u a r a n t e e d b y U. S . . . . 4 1 ,5 2 2 O th e r s e c u r i t i e s .............................................. . . . 8 6 ,6 0 4 9 4 ,9 1 7 R e s e rv e w ith F . R. B a n k ............................... . . 1 1 ,7 9 7 C a s h in v a u l t ........................................................... . . . 1 4 2 ,2 2 9 B a la n c e s w ith d o m e s tic b a n k s ............... 3 4 0 ,1 7 3 D e m a n d d e p o s it s — a d j u s t e d .................... 1 8 6 ,0 6 7 T im e d e p o s i t s ........................................................ 2 3 ,2 4 4 U . S . G o v e r n m e n t d e p o s i t s ....................... 2 0 3 ,7 3 1 D e p o s its of d o m e s tic b a n k s ....................... B o r r o w in g s : F ro m F . R . B a n k ............... F ro m O t h e r s .......................... F E D E R A L C han g * e F ro m : A u g . 1 7 ,1 9 3 8 S e p t.1 5 ,1 9 3 7 + 1 0 ,5 5 8 + 2 ,1 6 0 + 1 8 ,2 8 1 + 2 0 ,6 5 2 + — 619 493 + 1 9 ,3 7 7 — 1 ,3 1 2 + 649 — 1 ,4 1 2 96 407 497 1,5 7 1 8 ,3 9 8 7 ,0 9 5 1 ,3 5 2 2 ,6 5 5 8 ,0 6 3 727 9 ,3 1 0 4 ,7 4 7 149 299 8 ,0 0 0 — 1 ,1 3 0 + 1 ,2 7 0 — 2 ,1 3 4 + 5 ,9 9 3 — 2 ,3 7 1 — 2 1 ,8 1 1 + 7 ,6 9 9 + 1 1 ,7 4 1 — 1 3 ,4 6 5 + 1 ,5 5 6 + 3 4 ,9 7 2 + 9 ,3 1 2 — 977 + 8 ,2 0 9 + 2 4 ,0 4 8 — 540 — 311 — + — + + + — + — + + + + + + per cent less than in August, 1937. The cumulated total for the eight months of 1938 was 13.6 per cent less than for that part of 1937. Inventories at 48 reporting wholesale firms increased 2.9 per cent in August but were 14.8 per cent less than a year ago. Business failures in August increased in number, but lia bilities declined, compared with July, but were larger than in August last year in both number and liabilities. Banking Total loans and investments at 22 weekly report ing member banks in leading cities of the Sixth District have continued to increase in recent weeks and on September 14 were 10.6 millions of dollars larger than they were four weeks earlier and 22 millions larger than on July 6, when they were at the lowest point in two years. The larger part of the increase in the past two and one-half months has been in investments, which have risen 16 mil lions, while loans have increased 6 millions. In this period, commercial loans, loans on real estate, and “other loans,” have increased 8.4 millions, and loans to banks, security loans and holdings of purchased paper have declined; there have been increases in holdings of United States direct obli gations of 4.8 millions, in those guaranteed by the United States of 3.0 millions, and in Other Securities of 7.5 mil lions. Compared with a year ago, total loans on September 14 were about 20.7 millions larger, but investments were about 2.4 millions less. Demand deposits-adjusted have continued to increase and have recently been the largest in a little more than a year, and time deposits have in the latter part of August and early September averaged higher than they have been since last fall. Deposits of correspondent banks have also in creased recently to the highest level on September 14 since early May, and balances maintained with other banks were on September 14 the largest in a year and a half. At the Federal Reserve Bank of Atlanta discounts for member banks have recently declined somewhat further to the lowest level since April, 1937, but the total of discounts, purchased bills, industrial advances and holdings of United States securities has continued at approximately 112 mil lions of dollars. Total reserves of the bank increased someC O N D IT IO N O F FED ER A L RESER V E B A N E O F ATLANTA ( I n T h o u s a n d s of D o lla r s ) S e p t. 14, ____________________________________ 19 38 B ills D is c o u n te d ........................................... B ills B o u g h t..................................................... I n d u s tr ia l A d v a n c e s ................................... U n ite d S ta t e s S e c u r i tie s .......................... T o ta l B ills a n d S e c u r i tie s .................. T o ta l C a s h R e s e r v e s ................................. F R. N o te C ir c u la tio n . ....................... M em b er B an k R eserv e D e p o s its ... U . S. T r e a s u r e r — G e n e r a l A c c o u n t T o ta l D e p o s its ........................................... C o m m itm e n ts to M a k e I n d u s tr ia l A d v a n c e s ........................................................ $ 581 19 118 1 1 1 ,1 9 6 1 1 1 ,9 1 4 2 4 1 ,1 2 3 1 4 0 ,5 8 8 1 5 8 ,5 5 9 3 4 ,7 3 4 2 0 5 ,5 9 7 178 C h a n g e F ro m : A u g . 1 7 ,1 9 3 8 S e p t.1 5 ,1 9 3 7 — 62 .......... 3 .......... ' — 60 — 9 ,1 5 8 — 1 ,5 4 2 — 9 ,7 4 7 — 1 ,3 0 5 — 7 ,9 5 6 + — 2 — 949 — 88 — 57 + 205 — 889 — 1 0 ,0 6 2 — 2 6 ,5 6 4 — 1 5 ,1 9 4 + 2 9 ,3 7 1 + 1 5 ,5 6 2 — 134 2 B u s i n e s s C o n d it i o n s d e b it s t o in th e S ix t h F A LABAM A B in n i n g h a m ..............................................$ 7 1 ,1 5 5 D o t h a n . ........................................................ 2 ,7 8 2 M o b ile ........................................................... 3 3 ,4 8 8 M o n tg o m e r y ............................................ 1 6 ,8 6 8 FLO R ID A [a c k s o n v i lle .............................................. 6 2 ,2 6 1 M ia m i............................................................. 2 5 ,7 5 6 P e n s a c o l a .............................................. .. 8 ,6 9 0 T a m p a ........................................................... 2 3 ,0 9 7 G E O R G IA A l b a n y ........................................................... 3 ,9 3 6 A t l a n t a ........................................................ 1 8 4 ,4 5 1 1 4 ,3 3 6 A u g u s t a ............................ ........................ B r u n s w ic k ......................................... 2 ,2 8 7 C o l u m b u s ................................................ 1 1 ,7 8 5 E l b e r to n ...................................................... 880 M a c o n ........................................................... *?'?§! N ew nan ............. 1 .4 0 9 V a l d o s t a ............................ ........................ N e w O r l e a n s ............................................ * * H a W « S S fl...................................... J a c k /o n .. ...................................... M erid iem .......................................... V i c k s b u r g . . . ............................................ ^ h ^ i ^ g a ............................................ W v f f l e .. ................................................ N a s h v ill e ................................................... TO TA L 2 6 C i t i e s ...............................$ $ 7 5 ,7 4 5 2 ,5 1 7 3 4 ,3 4 6 1 7 ,9 7 1 $ 8 0 ,4 3 3 3 ,1 1 9 3 6 ,5 9 1 2 0 ,1 3 7 2 6 ,8 9 2 7 ,9 8 1 2 3 ,8 1 8 2 9 ,1 8 8 8 ,6 3 8 2 6 ,0 0 3 3 ,4 6 3 1 7 4 ,5 3 8 1 3 ,9 8 0 2 ,3 2 5 1 2 ,2 8 2 880 4 ,2 8 7 1 7 2 ,1 5 4 n '5 2 9 2 ,6 2 1 1 3 ,6 1 3 26,610 26,024 i ' 7RQ 1 ,7 6 9 33,130 2 2 0 ,6 3 8 2 1 8 ,6 5 0 2 0 7 ,1 2 9 1 ,7 1 7 1 0 ,1 0 0 3 ,8 1 3 9 ,8 0 1 3,904 25 126 8,109 4,140 27,236 8,724 .o'c?e 19,616 8,888 5 ,3 2 3 6 ,1 8 9 6 ,1 2 8 3 7 ,7 7 1 3 8 ,5 9 4 3 8 ,5 1 9 2 6 ,7 4 0 2 7 ,3 6 4 2 9 ,5 6 0 7 2 ,1 5 9 ____________ 7 4 ,6 8 9 ____________ 7 6 ,1 8 5 9 1 1 ,9 2 9 $ 9 0 7 ,4 4 4 ________ $ 9 3 0 ,2 2 5 what in July and early August but have since declined to the mid-year level. Reserve deposits maintained by member banks, which declined from 190 millions on April 6, prior to the reduction in reserve requirements, to 154 millions on June 22, rose to 169.5 millions by August 10, and have since declined about 11 millions of dollars. Daily average figures of deposits and reserves of all mem ber banks in the District indicate that total reserves averaged in August approximately 39.9 millions of dollars, or about 31.3 per cent, in excess of legal requirements. The estimated excess was about 4.5 millions larger in August than in July. Because of the recent decline in actual reserves, however, latest available figures indicate that on September 14 total reserves were about 32.5 millions of dollars, or 25.8 per cent larger than legal requirements. Agriculture September reports of the United States De partment of Agriculture indicate some reduc tions, small in most instances, from earlier estimates for most of the principal crops in the six states of this District. However, the September estimates continue larger than 1937 production of most crops in these states, with the exception of cotton, pecans, apples, and grapes. The table contains figures comparing combined totals of the September esti mates for the states of this District with production last year. The September estimate of the cotton crop shows a small ( I n T h o u s a n d s o i U n its ) E s tim a te P r o d u c tio n P e rc e n t 1 9 37 S e p t .1 ,1 9 3 8 C hange C o r n , b u s h e l s ........................................... .................. O a ts , b u s h e l s ........................................... .................. T a m e H a y , t o n s ............................................................ P e a n u t s , p o u n d s ...................................... .................... T o b a c c o , p o u n d s .................................... .................. P o ta t o e s , D u s h e ls .................................... .................... S w e e t P o ta t o e s , b u s h e l s .................. .................. P e c a n s , p o u n d s ...................................... .................. A p p le s , b u s h e l s ...................................... .................. P e a c h e s , b u s h e l s .................................... .................. 2 5 2 ,6 9 0 1 7 ,4 4 2 4 ,4 5 0 7 3 3 ,0 5 0 2 2 4 ,4 7 9 1 6 ,7 7 1 4 2 ,1 6 9 2 2 ,8 7 7 2 ,4 7 2 9 ,0 6 5 2 3 9 ,8 0 7 1 5 ,7 3 7 4 ,1 9 7 7 1 2 ,0 1 5 2 1 4 ,2 5 1 1 6 ,4 0 3 3 8 ,4 3 9 2 7 ,4 1 9 5 ,9 5 0 6 ,3 5 9 + 5 .4 + 1 0 .8 + 6 .0 + 3 .0 + 4 .8 + 2 .2 + 9 .7 — 1 6 .6 — 5 8 .5 + 4 2 .6 R eserve D is t r ic t C O T T O N P R O D U C T IO N — B a le s E s tim a te s S e p t. 1, 1 9 3 8 A u g . 1, 1 9 38 in d iv id u a l a c c o u n t s ( I n T h o u s a n d s o i D o lla r s ) A ug. lu ly A ug. _______________________________________1 9 3 8 ______________ 19 3 8 ______________ 1 9 3 7 ederal 1937 P r o d u c tio n ..................... F l o r i d a . ....................................... ..................... G e o r g i a ....................................... ..................... .................... ..................... .................. 1 ,0 2 5 ,0 0 0 2 7 ,0 0 0 8 7 8 ,0 0 0 6 4 7 ,0 0 0 1 ,5 4 3 ,0 0 0 4 7 3 ,0 0 0 9 9 8 ,0 0 0 2 8 ,0 0 0 9 3 9 ,0 0 0 6 3 1 ,0 0 0 1 ,4 3 8 ,0 0 0 4 3 9 ,0 0 0 1 ,6 3 1 ,0 0 0 4 0 ,0 0 0 1 ,5 0 0 ,0 0 0 1 ,1 0 4 ,0 0 0 2 ,6 9 2 ,0 0 0 6 6 1 ,0 0 0 S ix S t a t e s ................................................... U n ite d S t a t e s ..................... .................... 4 ,5 9 3 ,0 0 0 1 1 ,8 2 5 ,0 0 0 4 ,4 7 3 ,0 0 0 1 1 ,9 8 8 ,0 0 0 7 ,6 3 8 ,0 0 0 1 8 ,9 4 6 ,0 0 0 reduction from that a month earlier, amounting for the United States as a whole to 1.4 per cent. In the six states of this District, the combined estimates increased 2.7 per cent from August 1 to September 1, because of increases indicated in Tennessee, Mississippi, Louisiana, and Alabama. The Florida estimate declined slightly, and in Georgia the effects of cool, wet weather in July and early August caused a reduction of 6.5 per cent. Weekly quotations of spot cotton on the ten designated markets have declined further and on September 16 the average was 8.01 cents per pound. Sep tember estimates are compared in the table. Industry The value of construction contracts awarded in the Sixth District, and the value of building permits issued at twenty reporting cities, increased substan tially in August and were the largest totals since August last year. Residential contracts awarded in August increased 30 per cent over July and were 39.2 per cent greater than a year earlier, and other awards increased 28.4 per cent over July but were 19.1 per cent less than in August, 1937. In creases over July were reported for each of the six states in this District, and over August last year in Alabama, Georgia, and Tennessee. Value of building permits increased 35.3 per cent over July, but was 13.6 per cent less than in August, 1937, which had the largest total except one (July, 1936) for any month since May, 1929. Fifteen cities reported in creases over July, and eleven over August last year. The de mand for Southern Pine lumber declined slightly in August and has continued in early September at about the August level. Cotton mills in Alabama, Georgia, and Tennessee con sumed an average of 6,545 bales of cotton for each of the 27 business days in August, an increase of 20.3 per cent over July and the fourth consecutive monthly increase. Operations at cotton seed oil mills increased substantially in August. Pig iron production in Alabama increased 69.2 per cent from July to August, as compared with a gain of 24.3 per cent for the United States. Alabama furnaces in active oper ation increased from 5 on July 1 to 7 a month later, and to 12 on September 1, and two additional furnaces have been blown in since the beginning of the month. Receipts of tur pentine and rosin increased in August, and price quotations declined slightly. Press reports indicate that at the middle of September there were about 173,000 barrels (50 gallons) of turpentine and the equivalent of about 685,000 barrels (500 lbs.) of rosin under loan with the Commodity Credit Cor poration. Daily average production of electric power in creased slightly in July over June and over July last year. Employment declined 1.8 per cent in July, but payrolls in creased 0.6 per cent. B u s in e s s C o n d it i o n s in th e SIX T H D IST R IC T B U SIN ESS S TA TISTIC S STO CKS SALES C o lle c J a n .- A u g ., tio n A u g . 19 38 In cl. C o m p a r e d C o m p a r e d R a tio Aug. 1938 Com pared A u g u st w ith w ith w ith 1 9 38 Y e a r A g o A u g . 1 9 37 J u ly 1938 Aug. 1937 S ix t h F ed era l R eserve D is t r ic t SIX T H D IST R IC T B U SIN ESS IN D EX ES ( 1 9 2 3 - 1 9 2 5 = 1 0 0 e x c e p t a s n o te d ) A u g . 1 9 38 J u ly 1 9 38 100.0 1 9 3 .4 8 7 .6 6 3 .2 7 2 .0 9 5 .4 7 9 .4 1 3 9 .4 7 8 .1 5 8 .7 6 0 .2 7 1 .2 102.8 1 2 8.2 2 3 5 .9 1 0 9.5 8 2 .1 8 6 .7 1 2 2 .3 1 1 3.4 1 9 1 .0 1 0 7 .0 7 9 .3 8 7 .2 1 0 3 .2 1 3 1 .8 2 3 3 .2 1 2 8 .4 8 9 .2 9 2 .7 1 1 9 .9 6 7 .1 1 1 0 .9 6 8 .9 6 0 .9 5 1 .2 5 6 .2 6 0 .8 9 9 .9 6 0 .9 5 4 .3 4 4 .2 5 2 .8 7 4 .1 1 2 3 .5 7 0 .7 6 4 .2 6 4 .8 6 2 .3 6 9 .2 1 1 6 .7 7 2 .5 6 2 .8 5 1 .7 5 7 .3 1 0 9 .8 6 4 .1 5 7 .8 4 7 .5 5 5 .6 66.1 7 6 .4 1 3 0 .0 7 4 .4 ... 7 3 .2 5 0 .1 7 6 .6 8 0 .5 8 3 .5 9 6 .9 6 3 .2 4 8 .4 4 5 .4 7 0 .7 6 9 .9 8 4 .4 5 7 .4 8 3 .4 9 7 .3 9 4 .6 1 0 5 .9 ,. 7 2 .6 6 3 .2 7 8 .9 6 5 .1 6 1 .4 7 5 .3 7 8 .2 1 0 7 .0 1 0 5 .9 5 6 .3 4 8 .6 6 1 .5 5 0 .5 5 0 .9 6 5 .5 5 7 .7 7 4 .1 6 9 .3 7 6 .7 4 5 .4 9 7 .6 3 4 .5 8 0 .1 2 6 .0 8 4 .5 1 3 9 .4 6 0 .2 5 6 .8 2 3 .8 5 9 .9 1 9 9 .8 3 6 .5 6 5 .9 4 2 .0 1 4 .9 1 0 .5 5 9 .9 1 9 .4 1 9.1 6 3 .5 6 3 .4 3 7 .5 9 8 .9 1 3 8.0 1 5 0 .6 1 3 1 .6 1 4 4 .6 1 1 4 .7 1 3 2 .0 1 0 6 .5 1 1 9 .7 1 5 7 .5 1 8 6 .9 1 4 5 .0 1 5 4 .4 J u ly 1938 J u n e 1938 J u ly 1 9 3 7 114.1 8 8 .5 1 2 7.9 1 1 6 .0 1 1 4 .6 1 1 5 .5 1 1 9 .5 9 6 .3 1 2 7 .9 1 1 6.1 9 3 .9 1 1 6 .5 1 1 7 .6 1 5 2 .2 9 4 .5 1 4 9 .6 1 2 4 .9 1 7 7 .2 1 3 9.1 1 3 7 .7 1 5 9.3 7 3 .1 1 5 8 .3 1 4 7 .3 1 2 5.9 1 3 9.5 1 4 5 .8 1 6 3 .2 7 6 .1 1 5 3 .7 1 4 5 .0 1 1 6 .8 1 3 8 .5 1 4 4 .9 2 3 6 .7 8 0 .9 1 9 6 .7 1 5 5 .0 160.1 1 7 9 .7 1 8 2 .0 3 2 9 .1 3 6 5 .1 1 9 6 .3 5 6 5 .9 8 1 .8 M is s is s ip p i..................................................................... 2 1 9 .9 S ix S t a t e s .................................................................. ,. 2 9 2 .4 , 3 4 1 .9 B y W a te r P o w e r ................................................... 2 3 7 .6 B y F u e l s ..................................................................... . . . 3 1 9 .6 3 7 3 .3 2 0 3 .7 5 7 2 .9 7 9 .4 2 1 4 .6 2 9 2 .0 3 4 2 .8 2 3 5 .7 2 9 5 .0 3 7 7 .0 2 1 4 .9 5 8 9 .2 109.1 2 0 8 .8 2 8 7 .5 2 0 7 .7 3 7 5 .9 RETAIL SA LES*— U n a d ju s te d D IST R IC T (2 8 F i r m s ) .............................................. R E T A IL TR A D E A t l a n t a ................................... +50.1 B ir m in g h a m ................... +23.2 C h a t t a n o o g a ..................... +16.1 M o n tg o m e ry .......................+ 16.6 N a s h v ill e ...............................+29.1 N e w O r l e a n s .....................+44.7 O t h e r s .................................... +15.3 D ISTR IC T (49 F i r m s ) . +32.5 + 3.5 — 12.6 — 4.5 — 4.2 — 2.8 +5.9 + 0.9 + 0.3 — 2.1 — 5 .4 — 3 .9 — 5 .2 — 1 7 .6 — 2 0 .9 — 9 .8 — 3 .0 — 7 .9 W H O L E S A L E TR A D E G r o c e r i e s ....................... + 3.6 D ry G o o d s . . . ............... +68.7 H a r d w a r e .......................+13.8 E le c tric a l G o o d s ........ + 3.5 D r u g s ...................................... +14.8 F u r n i t u r e ....................... +19.4 T O T A L ............................... +15.8 — 13.6 — 11.5 — 13.3 — 23.2 + 8.8 — 0.8 — 10.7 — 1 3 .0 — 1 6 .0 — 1 6 .8 — 3 0 .0 — 3 .4 — 9 .5 — 2 5 .9 — 1 2 .7 — 1 8 .3 + 0 .3 8 3 .5 3 5 .1 4 0 .0 6 2 .6 66.0 RETAIL S T O C K S — U n a d ju s te d D ISTR IC T (2 4 F i r m s ) .............................................. — 1 3 .6 - 1 4 .i 5 7 .4 B ir m in g h a m .................................................................. C h a t t a n o o g a ................................................................ C O M M E R C IA L F A IL U R E S — D IS T R IC T Number (A c tu a l)................... Lia b iU tie s...................................$ 72 658 C O N T R A C T S A W A R D ED — D IS T R IC T ...................................$ 2 5 ,4 9 3 8 ,8 6 3 R e sid e n tia l............................... A ll O th e rs................................. 1 6 ,6 3 0 A la b a m a ................................... 2 ,9 7 6 F lo r id a ....................................... 8 ,9 0 2 $ —11.2 — 6 .9 + 2.1 —10.8 2 5 .0 3 2 .1 2 7 .3 2 4 .6 3 0 .2 2 9 .3 2 8 .0 (0 0 0 O m itte d ) A ug. J a n .- A u g ., In c l. 1 9 37 1938 1 9 37 68 1 ,1 2 0 452 4 ,4 2 3 29 192 2 31 2 ,1 4 3 $ 1 9 ,7 7 0 6 ,8 1 6 1 2 ,9 5 4 2 ,3 0 9 7 ,3 8 1 lio l Am $ $ 2 6 ,9 2 5 6 ,3 6 9 2 0 ,5 5 6 1 ,5 7 9 1 1 ,6 1 6 1 ,7 3 4 1 1 ,6 0 4 2 ,6 8 9 3 ,3 3 6 $ 1 3 7 ,7 4 1 5 2 ,3 1 4 8 5 ,4 2 7 1 6 ,6 5 7 4 4 ,7 2 2 2 7 ,6 2 2 2 8 ,6 9 0 1 4 ,0 0 2 3 1 ,2 5 7 $ 1 7 1 ,9 3 4 5 4 ,5 6 5 1 1 7 ,3 6 9 2 1 ,9 3 5 6 5 ,6 5 4 2 0 ,6 7 9 4 7 ,1 9 3 1 9 ,7 9 2 2 6 ,3 1 9 7 ,3 9 8 343 $ 4 5 ,9 4 6 3 ,4 6 0 2 ,5 9 7 3 ,5 6 6 3 ,7 9 1 3 ,2 1 7 2 9 ,3 1 5 4 ,7 2 7 231 155 493 123 247 3 ,4 7 8 561 895 550 4 ,8 2 7 $ 3 8 ,7 3 7 2 ,4 5 2 1 ,8 1 8 6 ,7 0 2 2 ,1 4 6 3 ,2 8 5 2 2 ,3 3 3 221 P IG IR O N P R O D U C T IO N — Tons A la b a m a ................................... 150 89 234 1 ,0 5 8 1 ,7 0 9 C O A L P R O D U C T IO N — Tons A la b a m a ................................... T e n n e sse e ................................. 840 370 742 280 1,101 6 ,7 4 0 2 ,6 1 8 8,002 A ug. 1938 430 12 136 65 114 15 194 C O T T O N SEED C R U SH E D — T o n s * ...................................................... 91 49 81 FERTILIZER T A G SALES— T o n s 27 22 T o ta l 6 S t a t e s ................................. ‘ G e o r g i a , A la b a m a , L o u is ia n a a n d M is s is s ip p i. 23 J u ly 1 9 38 44 80 RETAIL SALES*— A d ju s te d D ISTR IC T (2 8 F i r m s ) .............................................. B ir m in g h a m .................................................................. C h a t t a n o o g a ................................................................ N a s h v ill e .......................................................................... N e w O r l e a n s ................................................................ . . . N e w O r l e a n s ................................................................ . . . RETAIL STO C K S— A d ju s te d D ISTR IC T (2 4 F i r m s ) .............................................. A t l a n t a ............................................................................... B ir m in g h a m .................................................................. C h a t t a n o o g a ................................................................ W H O LESA LE SALES— T o t a l................................ D ry G o o d s ..................................................................... F u r n i t u r e .......................................................................... C O N T R A C T S A W A R D E D — D IS T R IC T .......... R e s id e n tia l..................................................................... M is s is s ip p i..................................................................... 2 4 7 ,1 0 4 7 3 ,4 6 5 1 1 8 ,4 4 2 1 4 7 ,6 2 4 4 ,9 8 0 1 3 2 ,1 3 6 7 2 3 ,7 5 1 4 4 6 ,6 0 8 2 7 7 ,1 4 3 , B U ILD IN G PERM ITS— 2 0 C i t i e s ....................... 12.6 B ir m in g h a m .................................................................. J a c k s o n v il le .................................................................. ... N e w O r l e a n s ................................................................ , , 15 O th e r C i t i e s ........................................................... , , . P IG IR O N P R O D U C T IO N — ALABAMA* .., A u g . 1 9 37 1 9 1 .2 1 0 2 .7 6 8 .7 7 6 .9 9 3 .5 66.2 6 5 .5 6 3 .6 88.1 6 5 .7 22.2 1 4 .9 68.2 14 1.1 4 2 .7 88.1 EM PLOYM ENT— (A v . fo r 1 9 3 2 = 1 0 0 ) (0 0 0 O m itte d ) Ju n e J u l^ J a n .- J u ly , In c l. 1 9 38 1937 1 9 38 FA RM IN C O M E*— S ix S ta te s . $ 29,087 $ 2 8 ,4 9 3 2 ,6 1 8 3,018 A l a b a m a ................................... 5 ,0 6 7 F l o r i d a ................................................. 2,886 5 ,6 6 6 G e o r g i a ..................................... 10,908 2 ,8 2 8 L o u i s i a n a ................................... 2,018 5 ,3 1 7 M is s is s ip p i............................... 2,875 6 ,9 9 7 T e n n e s s e e ................................. 7,382 262,932 74,246 117,953 150,700 5,309 137,947 749,087 460,363 288,724 , N e w O r l e a n s ................................................................ C O T T O N C O N S U M P T IO N — 3 STATES* 54 108 15 177 1 3 2 ,0 7 6 4 ,0 1 6 2 ,1 5 6 9 ,6 1 5 2 ,6 9 6 4 ,6 1 0 2 3 5 ,7 0 1 7 6 ,6 6 2 1 2 9 ,0 7 3 1 5 6 ,8 8 8 7 ,0 5 5 1 3 1 ,0 4 8 7 3 6 ,4 2 7 2 7 9 ,6 6 8 4 5 6 ,7 5 9 $ 2 8 2 ,1 9 6 3 4 ,7 8 5 7 0 ,6 4 6 4 0 ,9 0 1 3 2 ,8 6 2 4 1 ,9 6 5 6 1 ,0 3 7 $ 3 3 4 ,2 1 3 4 3 ,7 1 1 9 0 ,2 1 6 4 7 ,2 8 4 3 8 ,2 1 2 5 1 ,0 5 6 6 3 ,7 3 3 1 ,6 9 5 ,4 0 9 5 8 0 ,1 4 9 8 2 0 ,8 2 4 8 9 2 ,8 9 4 4 0 ,8 3 7 8 3 9 ,4 9 7 4 ,8 6 9 ,6 1 0 2 ,7 8 2 ,4 5 3 2 ,0 8 7 ,1 5 7 1 ,6 4 2 ,3 7 6 5 3 1 ,5 8 7 9 9 1 ,0 3 0 9 3 3 ,9 5 6 3 9 ,5 7 8 7 7 8 ,9 8 2 4 ,9 1 7 ,5 0 9 2 ,8 4 5 ,1 7 1 2 ,0 7 2 ,3 3 8 * F a rm In c o m e fro m c r o p s , liv e s to c k a n d liv e s to c k p r o d u c ts . G o v e r n m e n t P a y m e n ts n o t y e t a v a i l a b l e . 3 ,3 0 4 ( 0 0 0 O m itte d ) J u ly A ug. 19 37 C O T T O N C O N S U M P T IO N — B a le s A l a b a m a ...................................... . . . G e o r g i a .............................................. T e n n e s s e e ......................................... T o ta l 3 S t a t e s ............................ E L E C T R IC P O W E R P R O D U C TIO N — k w Hours A l a b a m a ................................... F l o r i d a ....................................... G e o r g i a ..................................... L o u i s i a n a ................................... M is s is s ip p i............................... T e n n e s s e e ................................. T o ta l S ix S t a t e s ................... By W a te r P o w e r ................ B y F u e l s ................................. B ir m in g h a m .................................................................. C h a t t a n o o g a ................................................................ N e w O r l e a n s ................................................................ 'I ii !:“ ? B U ILD IN G PERM ITS— 2 0 C I T I E S ................................... $ 6 ,3 9 4 A tla n ta ....................................... 367 B irm ing ham ............................. 186 493 Ja ck so n ville ............................. N a sh v ille ............................... .. 1 ,2 6 8 470 New O r le a n s ........................... 15 Other C it ie s ......................... 3 ,6 1 0 — 9 .6 — 7 .1 J u ly 1938 A ug. 1 9 38 —12.2 — 1.6 3 F ig u r e s fo r ,, M is s is s ip p i........................................................ ............ . . . ... S ix S t a t e s .................................................................. . . . 101.0 PAYROLLS— (A v . fo r 1 9 3 2 = 1 0 0 ) .. M is s is s ip p i..................................................................... ., S ix S t a t e s .................................................................. . . . EL EC TR IC P O W E R PR O D U C T IO N * ... *Indexes of retail sales, electric power and pig iron production and of cotton consumption are on a daily average basis, r = revised. B u s i n e s s C o n d it i o n s 4 in th e S ix t h F ed era l R eserve D is t r ic t I N D U S T R I A L P R O D U C T IO N N a tio n a l S u m m a r y o f B u s in e s s C o n d itio n s P r e p a r e d b y th e B o a r d o f G o v e rn o rs o f th e F e d e r a l R e s e r v e S y s te m I NDUSTRIAL activity increased considerably in August and advanced further in September. Factory employment and payrolls also showed a substantial rise in August, and distribution of commodities to consumers increased seasonally. P r o d u c t io n I n d e x o f p h y s ic a l v o lu m e o f p r o d u c tio n , a d j u s t e d f o r s e a s o n a l v a r i a ti o n , 1 9 2 3 - 1 9 2 5 a v e ra g e = 1 0 0 . B y m o n th s , J a n u a r y , 1 9 3 4 , to A u g u s t, 1 9 3 8 . 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 T h r e e - m o n th m o v in g a v e ra g e s o f F . W . D o d g e d a t a f o r v a lu e o f c o n t r a c ts a w a r d e d in 8 7 E a s t e r n S ta t e s , a d ju s te d f o r s e a s o n a l v a r i a ti o n . L a t e s t fig u re s b a s e d o n d a t a f o r J u n e , J u l y a n d A u g u s t. M O N E Y R A T E S IN N E W Y O R K C IT Y Volume of industrial production showed a further considerable increase in August, and the Board’s seasonally adjusted index rose from 83 to 88 per cent of the 1923-1925 average. In manufacturing, increases in output were general except in the automobile industry where there was a sharp seasonal decline as plants were closed for inventory taking and for preparations for the shift to new model produc* tion. At steel mills, where activity had risen considerably in July, there was a further advance in August and production was at an average rate of 42 per cent of capacity as compared with 35 per cent in the previous month. Output of lumber and plate glass also increased. In the textile industry the sharp advance that had been under way since early summer continued. Mill consumption of wool and cotton increased further, and deliveries of rayon were maintained at the high level reached in July. Shoe production showed a further increase and activity at meat packing establishments showed less than the usual seasonal decline. Production of bituminous coal and crude petroleum increased somewhat further. In the first three weeks of September steel ingot production continued to increase, while automobile production remained at the low level reached in August. Output of crude petroleum was reduqed, as wells in Texas were closed on both Saturdays and Sundays, whereas in August only Sunday closings had been required. Value of construction contracts awarded in 37 Eastern States increased con siderably in August, according to figures of the F. W. Dodge Corporation. The increase was in publicly-financed projects and reflected partly the expansion of the Public Works Administration program and the award of the first contract for the slum clearance projects of the United States Housing Authority. Awards for private residential building continued at about the same rate as in July and were close to the level reached in the spring of 1937. Commercial building, which had increased in July owing to the award of a contract for a large office building, declined in August to about the level of other recent months. E m ploym ent Factory employment and payrolls showed a marked rise from the middle of July to the middle of August, while in nonmanufacturing industries employment showed little change. The number employed at factories producing durable goods increased for the first time since the summer of 1937 and in the nondurable goods industries, where employment had increased in July, there was a further rise. Most leading industries reported increases in the number of workers. D is t r ib u t io n Distribution of commodities to consumers increased seasonally from July to August. Department store sales showed about the usual rise and mail order sales increased, while variety store sales declined. In the first half of September sales at department stores increased more than seasonally. Freight-car loadings increased somewhat further in August, reflecting chiefly larger shipments of miscellaneous freight. C o m m o d it y P r ic e s D is c o u n t r a t e o f F e d e r a l R e s e r v e B a n k ; w e e k ly a v e r a g e s o f d a ily y ie ld s o n 3 - to 5 - y e a r T r e a s u r y n o te s a n d o n T r e a s u r y b o n d s c a lla b le a f t e r 8 y e a r s , a n d w e e k ly a v e r a g e o f d a ily d e a le r s ’ q u o ta tio n s o n 9 0 -d a y T r e a s u r y b ills o r r a t e o n n e w b ills o ffe re d in w e e k . F o r w e e k s e n d in g J a n u a r y 6 , 1 9 3 4 to S e p te m b e r 1 7 , 1 9 8 8 . Prices of silk and rubber showed some advance from the middle of August to the third week of September and there were also increases at the end of the period in nonferrous metals. Wheat prices fluctuated considerably but showed little net change in this period. Prices of cotton and wool declined somewhat, and there were further decreases in prices of some finished industrial products. Bank MEMBER BANK RESERVES AND RELATED ITEMS BILLIONS OF DOLLARS____________________________ _____________________ BILU O N S OF P 0 LL * j * * GOLD SIrocx ^ ^ 1 MONEY IN CIFiCULATION y— L -— ^ — ^>/ IlE M B E R Bi RESERVE BAL ANCES -orAQiiDV r.ACu i ---- j p -•-RESERVE BANK---------------- --------------------1------------------s CREDIT 1 .. A TREASURY DEPOSIT •L— — J— 1934 L J 1935 w 1936 1937 1938 W e d n e s d a y fig u r e s , J a n u a r y 3 , 1 9 3 4 , to S e p t. 2 1 , 1 9 3 8 . C r e d it A heavy inflow of gold from abroad during the five weeks ending September 21 resulted in an increase of over $500,000,000 in the monetary gold stock. Member banks reserves were increased by Treasury payments for gold acquired but were sharply reduced in the last week of the period by payments to the Treasury for cash purchases of new securities and quarterly income tax collections. As a conse quence of these transactions, excess reserves, which had increased to $3,130,000,000, were reduced to $2,740,000,000 on September 21. Total loans and investments of reporting member banks in leading cities increased sharply during August and the first three weeks of September, reflecting chiefly an increase in holdings of United States Government obligations. Balances held in New York City for foreign banks showed a substantial increase. M oney R ates and B o n d Y ie l d s The average yield on long-term Treasury bonds increased in September from the low point reached at the end of August. The average rate on new issues of Treasury bills increased to 0.11 per cent, compared with 0.05 per cent. Yields on high-grade corporate bonds increased slightly.
@FedFRASER