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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 F E D E R A L BAN K O F A TLA N TA R E S E R V E D IS T R IC T S e p te m b e r 3 0 , 1 9 3 9 over August 1938. In the January-August period department store sales were 8.8 per cent, and wholesale sales were 7.5 per cent, * activity and in the distribution of merchan greater than in the like period of last year. dise through department stores and wholesale channels, and ^ Inventories at department stores increased 7.3 per cent, coal output also increased. Construction operations, reflected and wholesale stocks rose 5.8 per cent, in August. in contracts awarded and in building permits, declined and ^ The collection ratio for department stores declined pig iron output was lower. slightly in August but collections by wholesale firms The August increases in department store sales and in improved. D is tr ic t Substantial gains in August, due in part to S u m m a r v seasonal influences, were reported in textile cotton consumption in this District, in comparison with July and tvith August a year ago, were larger than gains for the country as a whole, while the changes in construction con tracts, and in pig iron and coal production were consider ably less favorable. Following the outbreak of hostilities abroad at the begin ning of September, business activity in the District has been accelerated in many lines, notably in foodstuffs, steel opera tions, textile manufacture, naval stores, lumber and paper. Trade Merchandise distribution through department stores and wholesale firms showed substantial gains in August and inventories increased. Both sales and stocks were larger than in August last year. Business failures, in point of liabilities, increased somewhat in August but continued less than a year ago. ^ Daily average sales in August by reporting department stores increased over July by considerably more than the usual amount, and the seasonally adjusted index rose to the highest level in the series. August sales by 45 reporting firms, some of which are not included in the index, were 12.1 per cent greater than in August 1938, but in the first two weeks of September reports from a smaller number of firms show a gain of only 6.3 per cent over that period last year. Reports to the United States Department of Commerce by 152 wholesale firms in the District show an increase of 17.9 per cent in August over July and an increase of 8.5 per cent 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 of D o llars) S e p t. 13, C hange 19 39 A u g l6 ,1 9 3 9 ! e p t. 1 4 ,1 9 3 8 S $ 5 8 1 ,9 7 1 + 1 9 ,9 6 3 + 3 ,4 0 5 2 8 7 ,1 2 0 + 2,688 L o a n s — T o t a l.............................................. + 5 ,1 1 9 C o m m e r c ia l, i n d u s tr i a l a n d 1 5 3 ,1 1 9 542 — 1 ,3 0 7 a g r i c u l t u r a l l o a n s .......................... + 2 ,9 7 0 O p e n m a r k e t p a p e r .......................... 70 + 535 L o a n s to b r o k e r s a n d d e a l e r s in s e c u r i t i e s ....................................... 5 ,0 3 2 575 — 1 ,0 6 7 — O th e r lo a n s fo r p u r c h a s i n g 1 1 ,2 4 5 36 — 3 ,3 4 0 + 3 1 ,1 4 5 276 + 3 ,2 5 6 + 1 ,0 4 9 328 L o a n s to b a n k s . — 2 ,1 4 1 . 8 2 ,5 6 0 O th e r l o a n s .......... + 6 ,7 5 2 + 5 ,2 3 8 1 ,7 1 4 + 1 7 ,2 7 5 2 9 4 ,8 5 1 1 4 2 ,3 7 9 735 — 7 ,0 7 1 + 6 0 ,7 4 9 4 ,0 3 7 + 1 9 ,2 2 7 9 1 ,7 2 3 + 5 ,1 1 9 + 1 ,5 8 8 1 3 3 ,1 4 3 3 ,4 2 5 + 3 8 ,2 2 6 1 3 ,4 7 6 + 2 ,0 6 6 + 1 ,6 7 9 2 0 4 ,0 8 1 + 5 ,0 9 4 + 6 1 ,8 5 2 — 3 8 4 ,3 4 7 785 + 4 4 ,1 7 4 1 8 8 ,2 2 2 + 2 ,1 5 5 + 1 ,3 0 5 3 9 ,8 7 9 + 1 6 ,6 3 5 + 1 ,3 9 1 2 6 2 ,7 5 7 + 5 9 ,0 2 6 + 6 ,0 3 2 B o r r o w in g s . Banking In the latter half of August and the first two weeks of September total loans at weekly re porting member banks in the District have increased. Invest ments at these banks declined in the first half of September. ►Reversing the previous downward trend, loans increased by 5.1 millions of dollars in the five weeks between August 16 and September 13. Increases in 6All Other” loans, those 6 for commercial, industrial and agricultural purposes and real estate loans were partly offset by declines in security loans and loans to correspondent banks. In the first two weeks of September the banks reduced their holdings of United States securities, both direct and guaranteed, but holdings of “Other Securities” have shown further small increases in recent weeks. In comparison with the corre sponding Wednesday a year ago, loans on September 13 were about 2.7 millions larger and total investments were 17.3 millions greater, although holdings of United States direct obligations were more than 7.0 millions less. ►Demand deposits-adjusted increased to another record total on August 30 and on September 13 were only slightly less. Deposits of correspondent banks have recently in creased and on September 13 were 59 millions greater than a year ago, and balances maintained with other banks have alsoi risen and were 62.9 millions larger than on the corre sponding Wednesday last year. ^ At the Federal Reserve Bank of Atlanta holdings of United States securities have recently increased more than 13 mil lions of dollars as a result of participation in purchases by the Federal Reserve System’s Open Market Committee. Mem ber bank reserve deposits, and total reserves, have declined somewhat from the record high levels of early August that followed the transfer of cotton loans from commercial banks C O N D IT IO N O F F E D E R A L R E S E R V E B A N S O F ATLA N TA (In Thousands of D o llars) S e p t. 13, C h a n g e F ro m : 1 9 39 A u g . 1 6 ,1 9 3 9 S e p t. 1 4 ,1 9 3 8 165 — 416 B ills d i s c o u n t e d ................................................... . . . .$ + 11 19 B ills b o u a h t ............................................................. — 3 + 634 752 In 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 , d ir e c t a n d . 1 1 6 ,5 6 7 + 1 3 ,4 1 9 + 5 ,3 7 1 g u a r a n t e e d ........................................................ 1 1 7 ,5 0 2 + 1 3 ,4 2 5 + 5 ,5 8 8 T o ta l b ills a n d s e c u r i t i e s ....................... — 3 ,2 4 6 + 7 8 ,2 7 3 . 3 1 9 ,3 9 6 T o ta l c a s h r e s e r v e s ........................................... + 984 + 1 3 ,7 5 5 . 1 5 4 ,3 4 3 F . R . N o te c i r c u l a t i o n ...................................... + 1 ,8 5 1 2 1 0 ,6 7 9 + 5 2 ,1 2 0 M e m b e r b a n k r e s e r v e a c c o u n t s ............. 4 5 ,5 5 5 + 4 ,0 9 2 + 1 0 ,8 2 1 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 .......... + 1 1 ,0 0 4 + 7 1 ,9 0 8 , 2 7 7 ,5 0 5 T o ta l d e p o s i t s ................................................... C o m m itm e n ts to m a k e in d u s tr i a l — 39 139 B u s in e s s C o n d it io n s in 2 t h e S ix t h DEBITS TO INDIVIDUAL ACCOUNTS ( I n T h o u s a n d s of D o lla r s ) A u g u st ALABAMA— 1939 B irm in g h a m ................... $ 7 9 ,8 0 3 $ D o t h a n . ............................ 2 ,5 7 8 3 5 ,6 7 8 M o b ile ............................... M o n tg o m e r y .................. 2 2 ,0 1 5 Ju ly 1939 8 4 ,4 5 9 $ 2 ,3 7 6 3 4 ,8 7 0 2 1 ,7 0 1 A u g u st 19 38 7 1 ,1 5 5 2 ,7 8 2 3 3 ,4 8 8 1 6 ,8 6 8 P er C ent C h an g e A u g . 1 9 39 F ro m : J u ly 1 9 39 A u g . 1938 + 12.2 — 5 .5 — 7 .3 + 8 .5 + 6 .5 + 2 .3 + 3 0 .5 + 1.4 FLO R ID A — J a c k s o n v il le .................. M ia m i.................................. P e n s a c o l a ............. .. T a m p a ............................... 6 7 ,6 4 8 3 8 ,9 5 3 8 ,3 4 2 2 4 ,0 7 5 7 1 ,1 5 6 4 2 ,8 0 8 8 ,1 5 6 2 6 ,7 1 8 6 2 ,2 6 1 3 1 ,9 6 3 8 ,6 9 0 2 3 ,0 9 7 G E O R G IA — A l b a n y ............................... A t l a n t a ............................... A u g u s t a ............................ B r u n s w ic k ....................... C o lu m b u s ....................... E l b e r to n ............................ M a c o n ............................... N e w n a n ............................ S a v a n n a h ....................... V a l d o s t a .......................... 3 ,9 5 4 1 9 4 ,9 5 4 1 7 ,2 4 8 2 ,2 3 5 1 4 ,2 6 2 928 1 3 ,5 5 1 1 ,7 9 1 2 7 ,1 1 2 9 ,2 3 7 3 ,8 4 8 1 9 2 ,9 7 4 1 6 ,7 7 9 2 ,4 2 9 1 3 ,4 0 0 940 1 4 ,5 9 7 1 ,8 8 4 2 5 ,7 0 5 4 ,7 3 7 3 ,9 3 6 1 8 4 ,4 5 1 1 4 ,3 3 6 2 ,2 8 7 1 1 ,7 8 5 880 1 2 ,2 6 8 1 ,4 0 9 2 6 ,6 1 0 1 0 ,1 0 0 + 2.8 + 1.0 + 2.8 — 8.0 L O U ISIA N A — N e w O r l e a n s ................ 2 0 0 ,4 0 0 2 0 2 ,3 3 2 2 2 0 ,6 3 8 1.0 M ISS IS S IPP I— H a t t i e s b u r g .................. T a c k s o n ............................ M e r id i a n .......................... V ic k s b u r g ....................... 4 ,4 0 0 2 5 ,1 2 5 1 0 ,5 7 0 6 ,3 2 2 4 ,3 8 9 2 6 ,4 8 0 1 0 ,6 6 5 6 ,5 4 2 3 ,9 0 4 2 5 ,1 2 6 8 ,1 0 9 5 ,3 2 3 + — — — 5 4 ,0 4 1 3 0 ,7 6 4 8 3 ,3 9 7 4 2 ,8 5 5 2 8 ,3 6 3 8 1 ,8 4 2 3 7 ,7 7 1 2 6 ,7 4 0 7 2 ,1 5 9 + 2 6 .1 + 8 .5 + 1 .9 + 4 3 .1 + 1 5 .0 + 1 5 .6 9 7 9 ,3 8 3 9 7 3 ,0 0 5 9 1 8 ,1 3 6 — 0 .7 + 6 .7 $ 2 8 ,2 7 0 ,1 7 3 — 0 .4 + 8 .3 TE N N E S S E E — C h a t t a n o o g a ................ K n o x v ille .......................... N a s h v ill e .......................... SIXTH D IST R IC T 2 6 C i t i e s ............................. UNITED STA TES— 141 C i t i e s ..........................$ 3 0 ,6 1 3 ,1 8 4 $ 3 0 ,4 7 6 ,7 3 7 — — + — 4 .9 9 .0 2 .3 9 .9 + 6 .4 — 1 .3 — 7 .2 — 4 .9 + 5 .5 + 9 4 .9 0 .3 5 .1 0 .9 3 .4 + 8 .7 + 2 1 .9 — 4 .0 + 4 .2 + 0 .5 + 5 .7 + 2 0 .3 — 2 .3 +21.0 + 5 .5 + 1 0 .5 + 2 7 .1 + 1 .9 — 8.6 — 9 .2 + 1 2 .7 — 0.0 + 3 0 .3 + 1 8 .8 to the Commodity Credit Corporation. Discounts for member banks have increased slightly but continue in small volume. ► Excess reserves of all member banks in the District, esti mated on the basis of latest available data, amounted on September 13 to about 68.7 millions of dollars, or 48.4 per cent of legal requirements. This compares with an excess of 721 millions in the first half of August, and an average /4 excess of 46.8 millions in July. ►Check transactions at 26 reporting cities declined 0.7 per cent in August but were 6.7 per cent greater than in August 1938. At 141 centers throughout the country bank debits de clined 0.4 per cent in August and were 8.3 per cent larger than a year ago. Agriculture Farm income from marketings of crops and livestock in the six states of the District was 6.6 per cent smaller in July this year than last, Government benefit payments were substantially less, and the total was 22.2 per cent smaller than for July 1938. For the JanuaryJuly period receipts from crops have been 25.4 per cent less than in that part of last year, but this was offset by a gain of 2.3 per cent in income from livestock and livestock products, while Government payments were almost twice as large, so that total receipts for the period were down only 1.8 per cent. ►Prospects for the 1939 cotton crop improved during August in all states of the District except Florida. The Sep tember 1st estimates by the United States Department of Agriculture were up 4.1 per cent over those for August 1st and foretell an increase of 1.5 per cent over the 1938 crop in these states. Damage from excessive rainfall in some sections of Alabama and Georgia were more than offset by F ed er a l R eser v e D is t r ic t improvement elsewhere. Greatest improvement over August was in Tennessee, Louisiana and Mississippi, which are situ ated partly in other Federal Reserve Districts. ► The September 1st estimates indicate improved prospects, over those a month earlier, for most of the growing crops in the six states of the District. The combined estimates for tobacco increased 4.1 per cent, increases of more than 2.0 per cent were reported for pecans, sugar cane, rice, apples and grapes, and estimates for corn, hay, potatoes, sweet po tatoes, peanuts and peaches showed smaller gains. Compared with 1938 production, these six states have apparently pro duced less wheat, com, oats, hay, rice, sugar cane,'' peanuts, potatoes and pears, but more tobacco, pecans, apples, peaches, grapes and sweet potatoes. Industry Textile operations in the District increased in August, and press reports indicate a further rise in the first half of September. Coal production increased further in August, but building and construction activity declined and pig iron output in Alabama was lower. ► The value of construction contracts awarded during August declined for the third consecutive month and, for the first time in a year, was less than for the corresponding month a year earlier. The August total was the smallest since February and was 22.5 per cent less than for August last year when there was an increase of 28.9 per cent over the previous month. The Aug,list decline was proportionately smaller in residential contracts than in awards for nan-resi dential building and public works and, while residential contracts were 10.5 per cent greater than in August last year, other awards were 40.1 per cent smaller. After increasing each month since February, the value of building permits declined 9.4 per cent in August but was, nevertheless, 51.3 per cent greater than in August 1938. In the January-August period total contract awards were 38.1 per cent greater than in that part of last year, residential contracts were up 54.3 per cent, other awards increased 28.3 per cent, and building permits were up 53.4 per cent. ►Cotton milk in Georgia, Alabama and Tennessee con sumed an average of 7,763 bales of cotton for each of the 27 business days in August. This is a gain t f 15.9 per cent over o July, the highest since March and 18.6 per cent above the rate of consumption in August last year. ►Steel mill activity in the Birmingham area declined from 82.0 per cent of capacity in the first week of August to 75.0 per cent in the week ended September 2, but recovered to 82.0 per cent in the weeks ended September 16, and 23. This compares with 71.0 per cent for the country in the week ended September 16 and 79.0 per cent the following week. Alabama production of pig iron, on a daily average basis, declined 4.8 per cent in August, while total output in the country increased 13.0 per cent. Compared with August 1938, production increased 34.1 per cent in Alabama as against 78.0 per cent in the country. Output of coal in Alabama and Tennessee showed a further small gain in August and was substantially greater than in August last year. ► The July rate of electric power production declined 1.7 per cent from the record level reported in June and was 17.6 per cent greater than a year ago. In the country as a whole July output was down 2.1 per cent from June and was 11.4 per cent above July 1938. B u s in e s s C o n d it io n s in t h e S ix t h F ed er a l STOCKS COLLEC T IO N RA TIO A u g . 1939 C o m p a red A ug. w ith 1 9 39 A u g . 1938 2 4 .7 + 1 5 .5 — 0.1 3 0 .3 A u g . 1 9 39 C o m p a r e d w ith : J u ly 1 9 3 9 A u g . 1 9 38 A t l a n t a ................................... + 6 3 .4 + 1 6 .9 B ir m in g h a m ....................... + 2 9 . 7 + 1 7 .5 M o n tg o m e r y ..................... + 7 . 5 + 2 .9 N a s h v ill e .............................. + 3 2 .1 + 1 2 .9 N e w O r l e a n s ..................... + 3 8 .0 + 3 .3 O t h e r s .................................... + 1 7 .1 + 1 4 .0 D IST R IC T (4 6 F i r m s ) . + 3 5 . 7 + 1 2 .1 RETAIL TRADE C o m p a re d w ith Y ear A go + 12,0 + 11.2 + 10.1 + 8.8 W HOLESALE TRADE G r o c e r i e s ............................ + 1 3 . 7 D ry G o o d s .......................... + 7 3 .4 H a r d w a r e ............................ + 1 3 .9 E le c tric a l G o o d s .............+ 5 .5 D r u g s ....................................... + 1 5 . 2 S h o e s ....................................... + 5 8 .4 TO T A L ............................... + 1 7 . 9 — 20.2 — 3 .5 + 1-7 — 7 .1 + 4 .6 + 8 .3 + 1.2 — 1.6 + 3 .6 + 6 .7 + 1 0 .6 + 4 4 .0 + 4 .6 — 1 6 .1 + 8 .5 + 4 .7 + 7 .0 + 9 .3 + 2 3 .6 + 7 .1 + 1 7.1 + 2 4 .9 + 1 2 .7 — 6 .5 + 7 .5 + 6.8 2 6 .5 2 9 .9 2 8 .9 2 7 .7 8 3 .0 3 5 .2 4 4 .2 6 5 .7 6 2 .7 2 7 .4 5 6 .8 (000 OMITTED) COMMERCIAL FAILURES— D IS T R IC T ......................................... N u m b e r .............................................. L i a b il iti e s ......................................... A ug. 1939 57 7 46 C O N T R A C T S A W ARDED— D IS T R IC T .........................................$ R e s id e n tia l ................... A ll O t h e r s ......................................... 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 ......................................... 19,759 9,790 9,969 2,661 8,694 2,714 2,899 3,311 3,607 B U IL D IN G PERM ITS— 20 C IT IE S ......................................... $ A t l a n t a ................................................ B ir m in g h a m .................................... J a c k s o n v il le .................................... N a s h v ill e ........................................... N e w O r l e a n s ................................. 15 O th e r C i t i e s ............................... 9,674 436 300 633 418 579 7,308 J u ly 1 9 39 48 608 A ug. $ 2 4 ,3 6 1 1 1 ,4 5 1 1 2 ,9 1 0 3 ,0 7 0 9 ,2 9 5 5 ,8 4 0 2 ,4 1 8 2 ,0 9 2 6 ,7 8 0 $ 2 5 ,4 9 3 8 ,8 6 3 1 6 ,6 3 0 2 ,9 7 6 8 ,9 0 2 5 ,0 1 8 4 ,9 1 5 2 ,0 6 3 5 ,8 7 1 1 9 38 76 780 J a n .- A u g ., In c l. 1 9 38 1 9 39 470 462 $ 5 ,6 6 7 $ 5 ,0 2 5 $ 1 9 0 ,2 8 8 8 0 ,7 2 4 1 0 9 ,5 6 4 2 6 ,7 9 8 6 0 ,4 1 8 4 0 ,0 9 7 4 0 ,7 9 5 2 4 ,5 9 9 3 4 ,7 0 3 $ 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 0 ,6 7 6 955 725 603 244 989 7 ,1 6 0 6 ,3 9 4 367 186 493 1 ,2 6 8 470 3 ,6 1 0 $ 5 9 ,4 1 0 3 ,9 1 1 2 ,7 8 2 5 ,1 0 9 3 ,1 0 2 4 ,4 9 8 4 0 ,0 0 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 3 201 211 150 1 ,6 4 9 1 ,0 5 8 1 ,0 8 8 461 972 418 815 376 6 ,9 8 5 3 ,0 4 8 6 ,5 9 7 2 ,6 4 5 P IG IR O N P R O D U C T IO N —T o n s A l a b a m a ............................................ A ug. 1 9 39 J u ly 1939 Au< Rtug. 1 9 38 68 126 15 209 53 101 13 16 7 54 108 15 177 63 25 90 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 TH REE S T A T E S . . . A t l a n t a ................................................................................. 2 2 9 .8 B irm in g h a m ..................................................................... 1 0 0 .7 N a s h v ill e ............................................................................ ............ 9 4 .6 ........ N e w O r l e a n s ................................................................................. 9988.5 .5 J u ly 1 9 39 8 8 .1 1 5 2 .4 8 7 .2 7 7 .3 7 7 .1 A u g . 1938 1 0 0 .0 1 9 3 .4 8 7 .6 7 2 .0 9 5 .4 RETAIL SALES*—A d ju s te d . . 1 4 6 .3 .. 1 2 5 .9 1 2 5 .9 2 0 8 .8 1 1 9 .5 1 1 2 .0 1 1 1 .7 1 2 8 .2 2 3 5 .9 1 0 9 .5 8 6 .7 1 2 2 .3 D IST R IC T (2 4 F i r m s ) ............................................................. 7 0 .3 A t l a n t a ..............................................................................................1 3 1.4 B ir m in g h a m ....................................................................................6 9 .5 N a s h v ill e ............................................................................ ............ 4 9 .5 N e w O r l e a n s .................................................................................5 7 .1 6 4 .4 1 1 9 .2 6 4 .7 4 3 .6 5 5 .5 6 7 .1 1 1 0 .9 6 8 .9 5 1 .2 5 6 .2 N a s h v ille RETAIL STOCKS*— U n a d ju s te d RETAIL S T O C K S — A d ju s te d D IST R IC T (2 4 F i r m s ) ............................................................. 7 2 .5 A tla n ta ........................................... ...............................................1 3 8 .3 B ir m in g h a m ................................................................................. 7 3 .2 N a s h v ill e ......................................................................................... 5 0 .0 N e w O r l e a n s ............................................................................... 5 8 .3 W H O LESA LE SALES— T o t a l................................................. 7 4 .2 G r o c e r ie s ......................................................................................... 55.1 D ry G o o d s ....................................................................................... 7 4 .9 H a r d w a r e ...................................................................................... 105.4 D r u g s .......................................................................................... . . 1 0 4 . 5 C O N T R A C T S A W A RDED — D IS T R IC T ............................ 5 6 .3 5?wfential.............................................. 47.3 8 A ll O t h e r s ...................................................................................... 69* A l a b a m a ......................................................................................... 53.2 F l o r i d a .............................................................................................. 59.9 Georgia ........................................................................................... 40.7 L o u i s i a n a ......................................................................................... 4 6 .1 M is s is s ip p i...................................................................................... 171.7 T e n n e s s e e ...................................................................................... 6 5 .1 7 0 .0 1 3 1 .0 68.1 4 6 .9 5 8 .5 6 2 .8 4 8 .5 4 3 .2 92.5 9 0 .2 6 9 .2 1 1 6 .7 7 2 .5 5 1 .7 57.3 73.2 5 0 .1 7 6 .6 8 0 .5 9 6 .9 6 9 .4 7 2 .6 81 6 51.3 63-2 73 9 6 7 .1 6 4 .1 8 7 .6 3 8 .5 1 0 8 .5 1 2 2 .3 94.9 6 5 .1 6 1 .4 75.3 7 8 .2 1 0 7.0 1 0 5 .9 BU ILD IN G PERM ITS— 2 0 C i t i e s ......................................... 8 6 .0 A tla n ta ........................................................................................... 2 8 .2 B irm in g h a m ................................................................................. 2 0 .2 J a c k s o n v il le ................................................................................ 7 6 .9 N a s h v il e ......................................................................................... 6 5 .9 N e w O r l e a n s ............................................................................... 4 5 .0 15 O th e r C i t i e s ............................................................................ 1 3 3.4 6 1 .7 4 8 .9 7 3 .4 3 8 .4 7 6 .9 1 3 0 .7 5 6 .8 2 3 .8 12 .6 5 9 .9 1 9 9 .8 3 6 .5 65 9 8 5 .0 8 9 .3 6 3 .4 COTTON CONSUMPTION— 3 S T A T E S ......................... 1 6 3 .7 (000 OMITTED) COTTON CONSUMPTION— B ales RETAIL SALES*— U n a d ju s te d A u g . 1939 D ISTR IC T (27 F i r m s ) ............................................................. 114.1 1 1 4.1 PIG IRON PRODUCTION—ALABAMA*. COAL PRODUCTION—T ons A l a b a m a ....................... ................... T e n n e s s e e ......................................... 3 D is t r ic t SIXTH DISTRICT BUSINESS INDEXES (1923-1925=100 ex ce p t a s n o ted ) SIXTH DISTRICT BUSINESS STATISTICS SALES R eser v e 1 4 1 .2 1 5 9 .6 1 3 3 .4 1 3 8 .9 1 3 8 .0 1 5 0 .6 1 3 1 .6 1 4 4 .6 1 2 8 .3 9 6 .8 1 3 7 .4 1 2 5 .0 1 0 3 .9 1 2 9 .8 1 2 6 .8 1 2 0 .6 9 0 .4 1 3 2 .5 1 1 6 .6 1 0 1 .6 1 2 1 .5 1 2 0 .0 1 9 2 .5 8 3 .0 1 7 6 .1 1 4 4 .3 1 2 8 .5 1 6 2 .2 1 6 2 .0 1 7 4 .3 7 4 .5 1 6 3 .8 1 4 9.1 1 2 8 .5 1 5 5 .1 1 5 4 .5 A l a b a m a .........................................................................................1 8 9 .5 G e o r g i a ...........................................................................................1 5 4 .5 T e n n e s s e e ...................................................................................... 1 4 6 .6 EMPLOYMENT (Av. lor 1 9 3 2 = * 1 00 ) COTTON SEED CRUSHED— T o n s * ................................................... FERTILIZER TAG SALES—T ons T O TA L S IX S T A T E S ............. 24 36 • 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. .................... 1 3 0 .2 .................... 9 5 .2 .................... 1 4 0 .6 .................... 1 2 9 .5 M is s is s ip p i............................................................... ...................... 1 0 6 .4 T e n n e s s e e ................................................................ .................... 1 2 9 .5 S IX S T A T E S .............................................................................. 1 2 8 .4 22 (000 O m itted ) FA R M IN C O M E*— Six States. $ 32,594 A l a b a m a ............................................ 3,422 F l o r i d a ................................................. 4,645 G e o r g i a .............................................. 10,953 L o u i s i a n a ......................................... 3,983 M is s is s ip p i....................................... 2,362 T e n n e s s e e ......................................... 7,229 E L E C T R IC P O W ER PR O D U C TIO N — kw 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 ......................................... TO TA L S IX S T A T E S ............. B y W a te r P o w e r ..................... B y F u e l s ......................................... Ju n e 19 39 I 3 8 ,9 3 0 4 ,9 9 0 8 ,0 6 8 5 ,8 9 7 5 ,3 7 3 4 ,8 4 7 9 ,7 5 5 ii; $ 4 1 ,9 0 2 6 ,2 6 8 3 ,5 9 5 1 4 ,1 4 2 6 ,0 6 9 3 ,7 6 3 8 ,0 6 5 J a n .- J u ly , In c l. 1 9 39 19 38 $ 3 1 8 ,0 3 5 $ 3 2 4 ,0 0 5 3 9 ,2 9 4 4 2 ,1 0 2 7 2 ,5 4 2 7 6 ,9 4 7 4 7 ,3 0 0 4 8 ,7 1 8 4 1 ,4 4 4 3 9 ,8 6 2 5 0 ,4 1 4 5 1 ,2 3 2 6 7 ,9 6 7 6 4 ,2 1 8 PAYROLLS (A v . fo r 1 9 3 2 = 1 0 0 ) .................... 2 0 4 .2 ..................... 8 3 .2 .................... 1 7 8 .9 .....................1 4 7 .8 M is s is s ip p i............................................................... ...................... 1 3 4 .8 T e n n e s s e e ................................................................ .................... 1 6 5 .9 SIX S T A T E S .............................................................................. 1 6 6 .4 J u ly 1 9 39 .................... 4 3 2 .6 F l o r i d a ..............................................................................................4 2 8 .7 G e o r g i a ........................................................................................... 2 0 6 .2 L o u i s i a n a ...................................................................................... .6 2 2 .7 M is s is s ip p i.................................................................................... 8 6 .1 T e n n e s s e e ...................................................................................... 2 5 2 .4 S IX S T A T E S ............................................................................ 3 4 6 .0 B y W a te r P o w e r ..................................................................3 4 3 .2 B y F u e l s ...................................................................................... 3 4 9 .1 ELECTRIC POW ER PRODUCTION* 345,579 87,157 123,913 165,826 5,581 158,344 886,400 462,129 424,271 ‘ In c lu d e s G o v e rn m e n t p a y m e n ts . 3 4 7 ,7 7 0 8 6 ,5 5 2 1 3 9 ,7 4 3 1 5 7 ,4 6 7 5 ,0 2 7 1 3 6 ,5 3 2 8 7 3 ,0 9 1 5 5 5 ,1 7 6 3 1 7 ,9 1 5 2 6 7 ,4 5 3 7 4 ,2 5 5 1 1 8 ,1 2 1 1 5 0 ,3 9 7 5 ,3 6 9 1 3 7 ,8 8 3 7 5 3 ,4 7 8 4 6 0 ,2 0 7 2 9 3 ,2 7 1 2 ,1 0 5 ,9 6 0 1 ,7 1 6 ,7 2 4 5 8 0 ,6 0 1 6 3 9 ,4 4 8 8 2 2 ,2 9 6 9 6 7 ,1 8 2 1 ,0 2 0 ,2 2 5 8 9 6 ,3 2 3 3 4 ,1 0 4 4 0 ,9 9 3 8 3 8 ,0 0 4 1 ,1 1 1 ,8 3 5 5 ,8 7 8 ,7 5 4 4 ,8 9 4 ,9 4 1 3 ,5 7 0 ,0 1 9 2 ,7 8 1 ,7 4 4 2 ,3 0 8 ,7 3 5 2 ,1 1 3 ,1 9 7 J u n e 1939 4 4 9 .8 4 3 9 .8 2 4 0 .4 6 1 1 .1 8 0 .4 2 2 4 .9 3 5 2 .2 4 2 6 .1 2 7 0 .3 J u ly 1 9 39 3 3 4 .8 3 6 5 .1 1 9 6 .6 5 6 4 .8 8 2 .8 2 1 9 .8 2 9 4 .2 3 4 1 .8 2 4 1 .3 • In d e x e s of r e t a il s a le s , e le c t r ic p o w e r a n d p ia iro n p ro d u c tio n , a n d of cotton c o n su m p tio n a r e o n a a a i ly a v e r a g e B a s is . B u s in e s s C o n d it io n s in 4 t h e S ix t h F ed er a l R eser v e N A T IO N A L SU M M A R Y O F B U S IN E S S C O N D IT IO N S D is t r ic t INDUSTRIAL PR D C N O U TIO P r e p a re d b y th e B o ard of G o v e rn o rs of th e F e d e ra l R eserv e S ystem "INDUSTRIAL activity, which had increased substantially during the summer, showed a sharp advance in the first half of September after the outbreak of war in Europe. Prices of basic commodities and equity securities rose sharply while prices of highgrade bonds declined. P r o d u c tio n In August, the Board’s seasonally adjusted index of industrial production was at 102.0 per cent of the 1923-1925 average as compared with 101.0 per cent reached in July. Volume of manufacturing production increased further, but mineral production declined, owing to a temporary curtailment in output of crude petroleum. In the iron and steel industry output increased somewhat further in August and rose sharply in the first half of September, steel ingot production reaching a rate of 70.0 per cent of capacity in the week ending September 16 as compared with about 63.0 per cent at the beginning of the month. Automobile production showed about the usual sharp sea sonal changes in this period as the shift to new model production was being made. Output of plate glass increased sharply. Production of nondurable manufactures advanced in August, reflecting chiefly increased activity at cotton and woolen textile mills. At meat-packing establishments activity declined less than seasonally, while at flour mills, where output has been at a high rate in recent months, there was not the usual large seasonal increase. Shoe production advanced seasonally. At coal mines output increased by about the usual seasonal amount and shipments of iron ore were at the highest rate of this season. Petroleum production declined sharply during the latter half of August, reflecting shutdowns of wells in most of the principal oil pro ducing states, but increased rapidly in the first half of September when the wells were reopened. Value of construction contracts, as reported by the F. W. Dodge Corporation, increased somewhat in August, owing to larger awards for publicly-financed projects, including several large dams and an increased volume of United States Housing Admin istration projects. Private residential building showed little change, although there is usually some seasonal decline. Other private construction, which in July had been the highest for any month in two years, declined in August. In d e x of p h y s ic a l v o lu m e of p ro d u c tio n , a d ju s te d for s e a s o n a l v a ria tio n , 1923-1925 a v e r a g e = 100. By m o n th s, J a n u a ry , 1934, to A u g u st, 1939. DEPARTM ENT STORE SALES AND STOCKS D is tr ib u tio n Department store sales increased more than seasonally from July to August. The Board’s adjusted index advanced from 86.0 to 89.0 per cent of the 1923-1925 average and was at about the level reached in the latter part of last year. Sales at variety stores showed little change in August. Freaght-car loadings rose somewhat further in August, reflecting chiefly continued increases in shipments of coal and miscellaneous freight. In d e x e s of v a lu e of s a le s a n d sto c k s, a d ju s te d for s e a s o n a l v a ria tio n , 1923-1925 a v e r a g e = 100. By m o n th s, J a n u a ry , 1934, to A u g u st, 1939. W HOLESALE PRICES C o m m o d ity P r ic e s Prices of most basic foodstuffs and industrial materials advanced sharply in the first half of September. Prices of wheat, com, sugar, cocoa, and vegetable oils as well as of hides, rubber, wool, zinc, and tin showed the largest increases. The general level of wholesale commodity prices as measured by the Bureau of Labor Statistics index rose 3.1 points and in the week ending September 9 was at 78.4 per cent of the 1926 average, about the same level as a year ago. A g ricu ltu re Crop prospects showed some improvement on September 1 over a month earlier, according to the Department of Agriculture. Indications are that production of all leading crops except cotton will be average or above average in volume. A cotton crop of 12,380,000 bales, about 10.0 per cent below the 1928-1937 average, is forecast This compares with a crop of 11,940,000 bales in 1938 and an estimated world consumption of 11,265,000 bales of American cotton during the past season. In d e x e s c o m p ile d b y U. S. B u re a u of L a b o r S ta tistic s, 1926 = 100. By w e e k s , 1934, to w e e k e n d in g S e p te m b e r 16, 1939. G o v e r n m e n t S e c u r ity M a r k e t M N RATES IN N Y R CITY O EY EW O K Average yields on long-term Treasury bonds, which had advanced fractionally since last June, increased sharply by about % of 1.0 per cent in the latter half of August and early September. In pursuance of the System’s policy of endeavoring to maintain orderly conditions in the m oneys market, the Federal Reserve banks during the first half of September increased their holdings of Government securities by about $400,000,000. On September 1 the Board of Governors of the Federal Reserve System announced that the Federal Reserve banks are prepared at this time to make advances on Government obligations to member and nonmember banks at par and at the same rate of discount. B a n k C r e d it Total investments held by reporting member banks in 101 leading cities declined during the first half of September. At New York City banks the decline represented the redemption at maturity of Federal Farm Mortgage Corporation bonds and at banks in other leading cities it represented the sale of Treasury bills and bonds. Commercial loans of city banks showed a substantial growth during August and the first half of September. F o r w e e k s e n d in g J a n u a r y 6, 1934, to S e p te m b e r 16, 1939.
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