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Monthly Review ATLANTA, G E O R G IA , SEPTEMBER 30, 1954 In% islssue: A n o th e r Lo ok a t D evelopm ent C o rp o ra tio n s D is tr ic t B a n k L o a n s in 1 9 5 4 D is tr ic t B u s in e s s H ig h lig h t s SixtkDifindStatistics: C o n d ifio n o f 27 M em b er Banks in Leading C itie s D ebits to Individual Dem and D eposit A cco u n ts D epartm ent S to re Sales and Inventories Instalm ent C ash Loans R eta il Furniture S to re O p era tio n s W ho lesa le Sales and Inventories SfrtfiVffiridIndexes: Con struction C o n tra cts C o tto n Consum ption D epartm ent S to re Sales and Stocks E le c tric Pow er Production Furniture S to re Sales and Stocks M anufacturing Em ploym ent M anufacturing Payrolls Petroleum Production Turnover o f Dem and D eposits S ^ e r d l ^ s e r v e ^ a n ^ ^ S f a n t a D I S T R I C T B U S I N E S S H I G H L I G H T S Economic conditions in the Sixth District are mixed, but the over-all situation is little changed from the immediately preceding months. Employment and prices are unchanged; consumer spendings are slightly down; and farm prospects are weakening. Construction, on the other hand, remains strong; credit continues easy; and bank credit is behaving in seasonal fashion. Department store sales in September, seasonally adjusted, fell below the high July and August volume. Consumer instalment credit outstanding at commercial banks rose less than usual in August. # Trade loans to retailers by commercial banks have risen more than usual dur ing September after declining contra-seasonally through most of August. • Excess reserves of member banks declined somewhat during the last half of August, reflecting a substantial increase in Government security holdings, and have remained at a lower, though still high, level during September. • Total loans at m ember banks declined substantially during August because of a decrease in C C C loans, but increased during September, according to preliminary data. Deposit turnover at m em ber banks declined during August, but remained sub stantially above the year-earlier level. • Business loans at banks in leading cities increased during August, despite de clines in borrowings by commodity dealers and sales finance companies. Short-term farm production loans outstanding at member banks are well be low year-ago levels; the volume of farm real-estate loans, however, has increased significantly. Cash receipts from livestock so far this year are matching last year’s receipts, but sharply reduced crop returns are causing total receipts to fall below those of last year. Prolonged drought has been especially disastrous to District farmers as many of them began the year with low feed and financial reserves. The shortage of feed and forage for stock will be further intensified this winter since farmers have not been able to work their land and start fall seedings. Construction contracts, residential and other than residential, advanced during August and were above a year ago. Factory payrolls during July, after seasonal adjustment, remained virtually un changed from June. # Cotton textile activity, measured by seasonally adjusted cotton consumption, advanced during August to the highest point this year, but remained substantially below the year-ago mark. •2 • A n o th e r h ook a t D evelo p m en t C orporation s Leaders in small Southern communities have gradually come to recognize that industrial development is required in order to enlarge incomes in their communities. The end of World War I I intensified recognition of the need for expanded industrial payrolls as former servicemen resisted a return to low-paying farm jobs and some localities suf fered from the loss of wartime activities. For a community to be successful in increasing industrial activity, considerably more than mere acknowledgment of such a need is required. Most important is that the town can satisfy those considerations that are generally essential to industry location— good markets, available raw mate rials, and an adequate labor supply. Other elements, usually of lesser importance, include the availability of bank credit, of factory buildings, and of industrial sites. Although the degree of industrial development is deter mined by basic economic forces, many communities have attempted to influence decisions of industrial location. One such method is the creation of community development corporations or industrial foundations, as they are some times called. An industrial foundation is a privately owned and managed corporation which uses funds collected through public subscription to provide various financial services as a means of attracting new industry or assisting in the expansion of local manufacturing firms. The objec tive is to expand payrolls in the community. One of the oldest and most successful development corporations in the country is the Louisville Industrial Foundation in Louisville, Kentucky. The organization spe cializes in providing capital loans to both new and estab lished small businesses that often have difficulty in securing this type of capital. It does not, however, make loans in competition with existing lending institutions. The Founda tion also furnishes business advice to its clients, and its capital is used as a revolving fund rather than being ex pended outright to subsidize particular enterprises. This type of organization is also found in the District, and while no accurate count is available, is apparently increasing in number. This Bank from time to time has studied methods by which industrial expansion may be attained and, therefore, in 1946 surveyed a representative group of recently organized development corporations located in Georgia and Tennessee. Passage of time has now made it possible to draw on the experiences of these corporations and provide answers to the following ques tions which could not be answered at that time: How successful have development corporations been in achieving their objective of enlarging payrolls in the community? What have they contributed to the industrial growth of the District? Have they satisfied the need of some small businesses for capital loans and counseling or have they been merely an extension of the activities of the local Chambers of Commerce? O rgan ization and C ap italization Many development corporations were established near or immediately after the end of the Second World War. A ll except one of the organizations covered in this report were formed at that time and located in small communities with little manufacturing. Business and professional men were generally responsible for founding these organizations and have since managed the affairs. Stock and bond holders vote for directors in proportion to their security holdings. Officers, who serve without pay and are often officials of the Chamber of Commerce, are elected by the directors. Development corporations are usually not organized for the purpose of making profits; only three of the founda tions studied intend to earn money for stockholders. Owners of the others consider themselves sufficiently com pensated by increased payrolls resulting from the organiza tion’s activities. Subscriptions in at least one-third of the foundations were considered outright donations. The initial amount of capital raised in each case was small, the average being less than $75,000. There was little correlation between the amount of paid-in capital and populations of the respective communities. Common stock with a par value of $100 was the usual type of security issued; only three ever raised money through bond sales. To some extent, development corporations also obtained funds from other sources. One draws on a one-mill prop erty tax levied by the city and county for industrial de velopment purposes. Another has borrowed from the Reconstruction Finance Corporation to help expand an industrial building already leased to an apparel firm. Two others have borrowed from local banks. S cop e an d T ype o f A ctivities Development corporations have concentrated their efforts in attracting new enterprises rather than helping industries already established. About three-fourths of the total num ber of firms aided were companies brought in from outside the community. Assistance to old, established companies was less important, although most development corpora tions participated to some extent in this type of activity. Except in one case, no help was given to individuals wishing to organize new businesses. In general, the corporations did not follow any precon ceived plan in providing services, but rather chose one particular activity in lieu of another as a result of circum stances. They discovered that by providing modern plant facilities on a lease basis, they could satisfy a major requirement of enterprises desiring to locate in an area. The erection and subsequent leasing of plants, therefore, was the most frequent type of assistance rendered in terms of total companies aided. Three foundations have been responsible for all the leasing to date, although most of the others plan to follow suit at the first opportune time. One erected a building but immediately sold it to a gar ment manufacturer. Where leases have been granted, the occupant usually has an option to purchase after a speci fied period. Inability to secure capital and unwillingness to tie up money in real estate are probably the major reasons why many businesses prefer to rent a plant rather than buy one. •3• When they lease, they have more money available for working capital purposes and they can charge off the rent as an operating expense, an inducement emphasized by its alleged tax-saving features. It is not surprising that most leases granted were to the small and lesser-known firms, which particularly find these considerations appealing. Uncertainty of success by such companies in their new localities probably also contributed to a preference for rental. Once operations become profitable, they will fre quently exercise their purchase option. A knitting mill and a hosiery manufacturer have already done this; other firms are expected to take similar action when the opportunity arises. Some communities have learned that they may lose a prospective industry because of a scarcity of favorable sites or because the owner increases his asking price after a company has shown interest in buying this land. If a foundation purchases the land before there is an actual prospect, on the other hand, it can give an enterprise DEVELOPMENT CORPORATION DATA P ro tectiv e a n d Financial F eatu res 1. D e v e lo p m e n t c o r p o r a t io n s s t u d ie d w e r e lo c a t e d m a in ly in s m a ll m u n ic ip a lit ie s w ith lit t le m a n u fa c tu r in g . Percent Em ployed Population in M fg.* City 1940 1950 1940 1950 A lb a n y , G a .................. B a in b r id g e , G a . . . C o r d e le , G a ................ D e c a t u r v ille , T e n n . D u n la p , T e n n . . . . G r e e n e v ille , T e n n . H a w k in s v ille , G a . . Jack son , T en n . . . M a c o n , G a ................... M a r ie t ta , G a . . . . S p a r ta , G a .................... W a r r e n to n , G a . . . W a v e r ly H a ll, G a . W aycross, G a. . . . . 1 9 ,0 5 5 . 6 ,3 5 2 . 7 ,9 2 9 433 721 . 6 ,7 8 4 . 3 ,0 0 0 . 2 4 ,3 3 2 . 5 7 ,8 6 5 . 8 ,6 6 7 . 1 ,8 7 2 . 1 ,2 8 4 569 . 1 6 ,7 6 3 3 1 ,1 5 5 7 ,5 6 2 9 ,4 6 2 514 873 8 ,7 2 1 3 ,3 4 2 3 0 ,2 0 7 7 0 ,2 5 2 2 0 ,6 8 7 1 ,9 5 4 1 ,4 4 2 690 1 8 ,8 9 9 16.8 1 6 .0 1 4 .8 1 5 .4 1 9 .2 1 7 .2 1 3 .0 1 5 .7 2 2 .2 11 .5 2 3 .2 9 .8 3 0 .7 1 3 .8 1 4 .6 1 4 .4 1 1 .3 1 3 .6 1 1 .8 8 .2 7 .9 1 2 .6 2 3 .1 2 6 .2 1 0 .2 5 .3 1 6 .2 8 .7 * A s represented b y cou n ty data. 2. O n ly o n e h a lf o f t h e s e c o r p o r a t io n s h a v e a c t u a lly p r o m o t e d in d u s tr y a n d th e ir e ffo r ts h a v e b e e n d ir e c t e d p r im a r ily to w a r d a tt r a c tin g o u t s id e firm s a n d c r e a tin g a d d it io n a l jo b s a n d p a y r o lls . New E xisting Lo ca l F irm s Enterprise Assisted Outside Firm s L o ca l Firm s Total N um b er o f C o m p a n ie s . . . 18 N u m b e r E m p lo y e d 4 ,9 4 5 ( E s t . ) ..................... A n n u a l P a y r o ll ( E s t . ) ..................... $ 1 5 ,0 5 0 ,0 0 0 3. 6 1 25 458 80 5 ,4 8 3 1 ,0 4 0 ,7 5 0 1 5 0 ,0 0 0 $ 1 6 ,2 4 0 ,7 5 0 A s s is ta n c e w a s l a r g e ly in t h e fo r m o f p r o v id in g b u ild in g s a n d w e n t m a in ly t o t h e a p p a r e l a n d t e x t i l e in d u s tr ie s , m o s t ly to e m p lo y e r s o f a s m a ll n u m b e r o f w o r k e r s . Ty pe o l Ent erpri se A pparel . T e x t ile . . F u r n itu r e E le c . m a c h . S t o n e , c la y O th e r m f g . N o n m fg . N o. o f Cos. N o. o f W orkers* * . . . 6 . ■ 4 . . . 3 . . 2 . . . 2 . . . 6 . . . 2 0 -5 0 5 1 -1 0 0 1 0 1 -2 0 0 2 0 1 -3 0 0 3 0 1 -5 0 0 O ver 5 0 0 N o. o f Cos. . . . . . . . . . . . . . . . . . . . . . . . 9 4 3 3 1 5 Form s o f Assistance L e a s in g b u ild in g s L oans . . . S a le s o f la n d G if t s o f la n d O th e r d o n a tio n s N o. o f Cos. . . . . . 12 . 4 . 4 . 2 . . 3 ** R efers to em p loym en t b y com p an ies in cities stud ied. In som e ca ses, th ese firm s are bran ch es an d, th erefore, are larger em p loyers o f lab or than is in d ica ted here. assurance of immediate availability at a reasonable price. Three local associations bought or sold sites at one time or another. However, not any of them have developed industrial tracts to the extent that paving, sewerage, util ities, and buildings are fully provided. Lending by development corporations has not been common, and foundation officials have given little or no thought to the problem of small business financing. One possible reason for this is that the foundations’ capital is usually relatively small. The four loans which were made were of a type that local banks would not have granted because of the risk involved or because they were for too long a term. Furthermore, those foundations that did lend money insisted on repayment rather than stock ownership in the assisted enterprise. Development corporations studied in the District provide no counseling service for their clients. Of the actual finan cial services rendered only a small proportion went to non-manufacturing enterprises. One association, for ex ample, was responsible for the constructing of private homes to help relieve a housing shortage. Development corporations have not been equally thorough in their preliminary investigation of concerns seeking assist ance. One aided a previously bankrupt firm, whereas at least four others turned down aid to firms they considered bad risks. Commonly, no obligation is imposed on the client as to a specified number of workers. Once an invest ment is made, the mortgage on the property is usually the only safeguard. Demands for advance rental payments as added collateral are exceptional. Usually, reserves are not set up against possible losses. While foundation officials almost universally condemn subsidies, they are, in fact, common. Only two organiza tions have operated wfthout granting outright subsidies and even these may have offered indirect subsidies at times. In terms of total transactions, at least one-third contain an indisputable element of subsidization. Many foundation officials emphasize that community attitude is extremely important to new industry. As evi dence that industry was welcome, two foundations donated land, although sites were usually sold at cost. Fearful of losing an industrial prospect to another locality, develop ment corporations also offered the following forms of subsidies: loans at lower-than-bank rates; some degree of tax minimization; payment of the difference between the land owner’s selling price for property and price industry was willing to pay; monetary contributions toward the rent and cost of a building; considerably lower rental terms than would be charged by private landlords; and free rent. Usually, however, rent payments were large enough to provide, besides repayment of the principal, some return on the investment, and the occupant commonly pays property taxes, insurance, utilities, and maintenance charges. Like all other institutions, development corporations find it advantageous to keep their capital funds intact, yet only three out of the seven foundations which actually assisted enterprises were able to completely preserve their capital. The same three experienced a net profit in their operations; •4 • the other four incurred losses. With expenses generally low and losses infrequent, inability to show profits depended directly on the degree of subsidization involved. Corporations have tended to follow a policy of reinvest ing funds in other enterprises. Although two have declared dividends at one time or another and one has retired a modest amount of its outstanding securities, in those instances where an occupant eventually purchased the leased building, the funds were reinvested in other plants rather than being returned to stockholders. Other organi zations contemplate similar action in the future. Success of development corporations in attracting indus try has been far from universal, and their overall accom plishment has not been considerable. Six of the thirteen organizations studied in 1946 (Bainbridge, Cordele, Mari etta, Waycross, Georgia; and Greeneville and Jackson, Ten nessee), in addition to the one in Macon, helped locate at least one new plant each or assisted local industry. At present, all the above mentioned are active, except the Marietta Industrial Association. These six foundations have assisted a total of 25 companies employing an estimated 5,500 workers with annual aggregate payrolls of over 16 million dollars. Foundations in Greeneville, Marietta, and Cordele were responsible for assisting the bulk of these companies. As a result of the establishment of industries in at least two communities, the suppliers of raw materials located in the area. Probably accompanying the increased payrolls were greater retail sales and additional jobs in trade and services. Organizations in Albany and Hawkinsville, Georgia, and in Decaturville, Tennessee, rendered no assistance and, with the exception of Hawkinsville, have been disbanded. No information was obtainable regarding the other four (Sparta, Waverly Hall, and Warrenton, Georgia and Dun lap, Tennessee). Presumably, they are inactive. D ifficulties an d P roblem s A major difficulty encountered by the development cor porations studied was the comparatively small size of their paid-in capital funds. Inadequacy of capital largely explains why even the most successful ones erected only a limited number of buildings and confined assistance primarily to businesses requiring relatively small, inexpensive plants. In only a few cases have corporations tried to overcome the problem of inadequate capitalization. Only two have engaged in further subscription drives, although some others are considering this action. However, as one cor poration did experience, it is difficult to raise additional capital when no pecuniary return can be offered, and it is almost impossible unless the community has an actual industrial prospect. Foundations commonly experience some trouble with leasing arrangements, which are fairly easily broken. Five assisted companies at one time or another vacated the property. Although the development corporations man aged to collect any back rent, they were often obliged to find a manufacturer of similar products to move into the building, because of the very nature of much industrial property. In order to prevent a long vacancy, one organi zation was forced to agree to extremely favorable rental terms for the occupant. The reason some were unable to attract industry can be attributed to peculiar local factors. In one, the foundation device was apparently never taken very seriously partly because of the town’s success in locating industry without it. In another, inadequacy of water discouraged efforts to attract manufacturers. As a corollary to the difficulties of some and failures of others, it may be said that an industrial foundation will be more successful if the community, aside from economic advantages, has an active Chamber of Commerce, a citi zenry truly interested in industrial development, and an association supplied with ample capital. A pp raisal an d C onclusions The experiences of the development corporations under study suggest that these organizations were not guided by any underlying philosophy. Their methods of operation differed considerably from the Louisville Industrial Foun dation. The need of some small businesses for capital loans and counseling aid has not been satisfied. Instead, the development corporations represent an extension of the work customarily undertaken by Chambers of Commerce in the industrial development of their communities. Sub sidies have unfortunately played a considerable part in foundation activities. Furthermore, development corpo rations have often been unable to keep their capital funds intact. This situation arises from subsidization rather than granting of money to enterprises which failed. Such organizations, however, also have certain desirable features to their credit. By erecting and leasing plants, they have been of considerable help to small concerns lacking long-term capital. They have undoubtedly been of benefit to certain local communities, although there is no way of knowing the extent of industrial development which might have occurred without them. By encouraging industries to locate in agricultural areas, they have promoted a more diversified local economy. Their contribution to the indus trial growth of the District, however, has been minor. It is too early to tell whether this type of organization will become a permanent feature of these communities, although the reinvestment of funds returned to development corpo rations by assisted enterprises indicates that this may be th ec a se - H arry B randt B a n k A n n o u n c e m e n t On September 2, the Citizens National Bank of St. Petersburg, St. Petersburg, Florida, opened fo r busi ness as a member of the Federal Reserve System. This bank is in territory served by the Jacksonville Branch and has a capital stock of $400,000 and surplus and undivided profits of $250,000. George E . Tom berlin is President and Fre d H . Green is Vice President and Cashier. D is t r ic t B a n k Although businessmen, bankers, and economists may take some comfort in the recent stability in the nation’s econ omy, they are more interested in finding some signs of an upturn in business. Because many of them placed autumn as the time of a possible revival, they are now dusting off the old business indicators with the hope that some of them will reveal a rising trend. One of these is the trend of bank loans, a significant guide to economic activity not only because it registers borrowers’ expectations but also their current financial position. Some generalizations can be made about bank borrow ers. Businessmen— important bank customers— borrow because they see a chance to make a profit. They use the borrowed funds to expand inventory for future sales, to increase working capital, or to employ more workers. They may even want to improve the appearance or effi ciency of their stores or factories. Borrowing for any of these reasons is a sign that they expect business to improve. Although consumers may borrow for other purposes, they do have something in common with businessmen: they borrow when their incomes are increasing or when they are expecting an increase. Farmers, like businessmen, borrow because they need money to pay production ex penses that eventually will result in earnings. Upon these borrowers, the banker, of course, imposes many different requirements, but he requires all of them to be financially sound and have a reasonably good chance of making repay ment. Repayment, except for distress loans, depends upon foreseeable earnings. On the other hand, if businessmen or farmers cannot see a possibility of making a profit, they usually cut their inventory, slow down production, and reduce loans. The consumer, if he is not certain of future income, refrains from borrowing and attempts to reduce his debts. As a result of this relationship between banker and borrower, changes in loans reflect to some degree the optimism or pessimism of the economy. Total loan volume now high . • . So far this year, the behavior of bank loans in this Dis trict does not point to pessimism. Loans of all types at all member banks at the end of August were 339 million dollars greater than last year. By the middle of September, business loans at weekly reporting banks in leading cities were above the year-ago level as loans to manufacturing and mining concerns— chiefly textiles, metal, fuel and chemical firms— held the total relatively high. Loans out standing of food, liquor, and tobacco firms, however, were less this year than last year. Construction loans, in line with the recent building boom, are well above the 1953 level and are now at a post war high. Farm loans outstanding are less at District banks this year than they were in 1953, but outstandings on Commodity Credit Corporation loans, made last fall, have helped hold total agricultural loans up. The C C C repaid a large volume of its loans during the first week in August, L o a n s in 1954 however, thereby reducing total farm loans and conse quently total loans. After the postwar peak in October 1953, consumers de creased their indebtedness to banks month by month, but by June they were borrowing again, largely for automobile purchases and personal expenses. Since July they have increased their obligations to banks to obtain funds for other retail items, such as appliances. And should increase during the last quarter . . • Banks loans normally increase during the last quarter of the year, and some guideposts point to a gain again this year. As yet, however, these indicators do not reveal the extent of the rise. Ordinarily, business loans start to expand in August and reach a peak in December. So far, loans to District manufacturing and mining firms have followed closely previous seasonal patterns, the only exception being loans to textile, apparel, and leather firms, which are now borrowing at a rate well above that of last year. Loans to retail firms will probably continue to follow the seasonal pattern throughout the remainder of the year since depart ment stores and wholesalers will probably expand their substantially reduced inventories. The indications so far, however, do not point to more than a seasonal rise. Construction loans, based on contracts awarded thus far, should hold up well during the remainder of the year, and loans to commodity dealers probably will increase as long as the price attracts cotton to the market. Since automobile and appliance sales have been running well ahead of last year’s volumes and since department store sales have risen sharply, consumer loans probably will increase during the last quarter. Automobile loans, however, may experience a temporary decline in the next few months because of an expected slow-up in sales caused by model changeovers. On the other hand farm production loans and C C C loans more than likely will not be as great as those of last year. Production loans normally decline during the autumn and C C C loans probably will not expand as rapidly as last year because the attractive current cotton market is keeping farmers from placing their cotton in loans. To the extent that banks in certain drought areas renew production loans of their farm customers, the decline in these loans will be less than usual. Nevertheless, farm loans probably will remain fairly close to their present level instead of contributing to an end-of-the-year rise in total loans as they did last year. But no more than season ally . • . The prospects for bank loans for the remainder of this year, although bright, are not spectacular. On the basis of what can be seen at present, loans may possibly increase about 1 0 0 million dollars above the August level, raising total loans above the 2.5 billion dollar mark. Although the assumptions upon which this estimate is based may be altered in the next few months, few signs of marked opti mism can be found in the trend of Sixth District bank loans. C h a r l e s S. O v e r m i l l e r •6- Sixth District Statistics _____ Retail Furniture Store Operations_____ Instalment Cash Loans Volume Percent Change Aug. 1954 from July Aug. 1954 1953 No. of Lenders Report ing Lender 39 17 Federal credit unions . . State credit unions . . . Industrial banks . . . . Industrial loan companies Small loan companies . . Commercial banks . . . . +3 + 25 —S S 11 30 33 + 10 +1 + 17 + 28 +4 + 15 +7 +4 +1 Outstandings Percent Change Aug. 1954 from Aug. July 1954 1953 +1 +3 —0 +2 +0 +0 + 13 —3 —3 Number of Stores Percent Change August 1954 from Item Reporting July 1954 August 1953 132 +4 —3 Total s a le s ................................................................ Cash s a le s ................................................................ 112 +7 +5 Instalment and other credit sales . . . . 112 +3 —4 Accounts receivable, end of month . . . 114 +1 —2 Collections during m o n th ................................ 114 —1 —3 Inventories, end of m onth................................ 90__________________ + 0 _________________ — 9 +3 W holesale Sales and Inventories* +0 —2 Sales Percent change Aug. 1954, Irom July No. of Aug. No. of Firms 1954 Firms 1953 Condition of 2 7 Member Banks in Leading Cities (In Thousands of Dollars) Sept. 22, 1954 Item Loans and investments— T o ta l..................................... Loans— N e t............................. Loans— G r o s s ...................... Commercial, industrial, and agricultural loans Loans to brokers and dealers in securities. Other loans for pur chasing or carrying secu rities...................... Real estate loans . . . Loans to banks . . . Other loans ..................... Investments— Total . . . Bills, certificates, and notes ..................... U. S. bonds ..................... Other securities . . . Reserve with F. R. Bank Cash in vault ...................... Balances with domestic banks ................................ Demand deposits adjusted Time deposits...................... U. S. Gov’t deposits . . Deposits of domestic banks B orrow in gs................................ 3,096,262 1,258,810 1,280,638 Aug. 25, 1954 3,094,342 1,244,816 1,266,673 Sept. 23, 1953 2,912,755 1,228,941 1,250,569 Percent Change Sept. 22, 1954, from Aug. 25, Sept. 23, 1954 1953 +0 +1 +1 +6 +2 +2 721,786 695,093 696,311 +4 +4 13,988 16,269 14,739 — 14 —5 33,538 95,011 1,670 414,645 1,837,452 33,208 93,749 22,069 406,285 1,849,526 38,844 89,984 6,273 404,418 1,683,814 668,434 888,207 280,811 510,761 46,946 689,365 875,060 285,101 484,552 46,269 237,817 2,237,163 604,683 81,613 668,976 23,600 239,628 2,248,757 602,520 98,568 641,496 3,000 +1 +1 — 92 — 14 +6 +2 —1 — 73 +3 +9 791,796 622,743 269,275 510,765 46,379 —3 +2 —2 — 16 + 43 +4 +5 —0 +1 217,839 2,111,535 573,725 109,862 603,019 36,900 —1 —1 +0 +1 — 17 +4 +3 +5 +6 +5 +7 +4 +0 +3 —8 —0 — 12 —1 1 —4 +5 —1 +6 —3 —6 —7 —2 —5 —9 —8 +8 —5 +1 —4 —5 —2 —2 +1 +2 +1 —3 +1 —1 +1 —5 +0 +13 —7 —3 +2 +2 —2 —2 — 12 +2 —8 +6 —5 +9 +7 —7 —5 +8 — 13 +0 + 18 —9 —6 +2 —0 +1 —3 —3 —3 —1 —6 —7 —2 +3 —4 —1 +3 +9 +3 + 10 +4 — 12 + 10 + 17 — 10 — 11 + 15 +7 +7 +9 —4 +14 —8 —5 — 15 —3 *Reporting stores account for over 90 percent of total district department store sales. * * ln order to permit publication of figures for this city, a special sample has been constructed which is not confined exclusively to department stores. Figures for non department stores, however, are not used in computing the District percentage changes. —6 +2 31 —2 21 —8 9 + 19 +4 7 10 + 17 3 +8 18 —40 3 —15 5 +9 6 5 9 + 10 + 10 —4 6 +2 4 + 10 17 +1 3 —13 4 —21 7 +5 3 17 +i +3 17 +20 5 —5 4 —i 20 —4 10 +1 3 +4 26 23 +3 +2 + 10 —17 —12 14 13 +2 +1 26 —0 3 16 +4 —3 15 —15 12 —4 3 —6 3 —9 5 —31 8 +64 —i i —13 *Based on information submitted by wholesalers participating in the Monthly Wholesale Trade Report issued by the Bureau of the Census. Debits to Individual Demand Deposit Accounts ___________ (In Thousands of Dollars)___________________________________ Percent Change ALABAMA Anniston . . . . Birmingham . . . Gadsden +2 —1 24 3 3 Plumbing & heating goods 4 Lumber, construction materials Machinery equipment supplies 30 Industrial machinery, equip., supplies . . . 12 Iron, steel, scrap, 14 waste materials . . . + 11 — 36 + 11 +2 —11 +6 __________________________ Percent Change_________________________ ________________ Sales_______________ _____ Inventories Aug. 1954 from g lyionths Aug. 31, 1954, from July Aug. 1954 from July 31 Aug. 31 Place____________________________ 1954 1953______________1953____________ 1954 1953 +6 +1 +6 Electrical, electronic & appliance goods . . . Hardware, plumbing & heating goods . . . . +5 — 26 Departm ent Store Sales and Inventories* —2 —3 Dry goods, apparel . . . . Furniture, home furnishings Paper, allied products. . . 41 5 +9 *100 percent or over. A L A B A M A ................................. +6 Birmingham............................+ 12 Mobile.......................................+ 12 Montgomery........................... +2 F L O R I D A ................................ +6 Jacksonville............................ +4 M ia m i...................................... + 13 O r la n d o ................................ +2 St. Ptrsbg-Tampa Area . —2 S t. Petersburg . . . . —1 Tampa................................. —3 G E O R G I A ................................ + 11 A tlanta**.................................+ 1 7 A u g u s ta ................................ —1 Columbus................................. +0 M acon...................................... +0 R o m e * * ................................ +8 Savannah**............................ —4 L O U IS IA N A ...........................+ 18 Baton R o u g e ...................... +1 New O rle a n s......................+ 25 M IS S IS S IP P I........................... +2 +5 J a c k s o n ................................ M erid ian **............................ —3 T E N N E S S E E ...........................+ 1 0 Bristol (Tenn. & V a .)* * +25 Kingsport-Johnson C it y * * .................................+ 18 Chattanooga........................... +8 Knoxville................................. + 1 1 Nashville................................. +8 D I S T R I C T ................................ +9 Type of Wholesaler Grocery, confectionery, meats Edible farm products . . . Drugs, chemicals, allied products ........................... Inventories_________ Percent change Aug. 31, 1954, from No. of July 31, No. of Aug. 31, Firms 1954 Firms 1953 . . . . Montgomery . . . Tuscaloosa* . . . FLORIDA Jacksonville . . ■ M ia m i...................... Greater Miami* . Orlando..................... Pensacola . . . . St. Petersburg . . T a m p a ...................... West Palm Beach* GEORGIA Augusta . Brunswick . Columbus . Elberton . Gainesville* Griffin* . Newnan . . . . . . . . July 1954 August 1953 29,230 414,089 19,131 21,447 186,502 101,730 32,524 30,458 442,855 16,992 23,385 171,451 98,462 35,578 29,436 416,904 17,600 23A522 154,942 92,838 32,107 509,965 400,912 600,973 82,668 55,153 89,300 179,071 53,362 478,119 401,280 603,254 89,435 54,860 95,099 183,042 ‘ 53,989 498,429 70,335 54,605 77,129 164,218 49,309 +7 + 31 337J3S —0 + 19 —0 + 21 —8 + 18 +1 +1 —6 + 16 —2 +9 —1 +8 . . . . 45,655 129,192 64,570 973,838 49,606 138,599 55,160 971,163 42,027 126,284 49,902 923,246 . 20,981 164,273 26,132 13',970 21,388 151,659 28,025 14,901 20,589 159,787 30,286 14,411 Meridian . . . . Vicksburg . . . . TENN ESSEE Chattanooga . . . 205,914 213,974 207,673 Knoxville . . . . 150,691 140,859 154,342 Nashville . . . . 472,365 447,931 460,255 S IXTH DISTRIC T 32 C itie s. . . . . 6,036,330 5,995,558 5,630,830 UNITED STATES 345 Cities . . . . 151,525,000 154,856,000 134,386,000 *NotincludedinSixthDistricttotals. —1 —1 388,445 37,165 1,193,413 83,432 13,738 77,080 4,645 24,702 12,940 82,402 9,588 30,931 119,814 35,066 . . . . —4 —6 + 13 +9 +3 —9 40,009 1,240,840 79,591 14,259 81,817 4,315 30,551 12,543 96,817 12,417 29,321 124,510 31,886 . . . . . . July Aug. 1954 from 1954 1953 1953 +9 —9 + 20 + 10 +1 38,677 1,263,840 77,623 13,768 76,506 3,975 29,965 12,691 85,255 10,674 30,115 118,414 36,474 . . . . Savannah . . . . Valdosta . . . . LOUISIANA Alexandria* . . Baton Rouge . . Lake Charles . New Orleans . M ISSISSIPPI Hattiesburg . . August 1954 —8 —3 +2 —2 —3 +4 +6 —7 +0 —6 —1 —8 — 14 —2 + 2 1 —2 +1 —12 +3 — 14 + 1 1 +3 —5 + 14 —1 —3 —8 +9 —7 + 17 +0 +2 +4 —3 +2 +6 —6 +6 +4 +2 + 10 + 10 + 10 +5 +3 +8 +5 +3 —1 +5 —7 +6 —2 —7 + 13 —7 +1 +2 +4 —4 + 12 + 29 +5 +6 +2 +4 +3 +2 +3 — 7 — 14 —6 — 3 +1 —3 — 14 —1 —1 —2 —2 +8 +3 —1 —5 +4 +1 +7 +3 —2 + 13 +8 —4 +7 +5 Sixth District Indexes Manufacturing Employment 1 9 4 7 -4 9 = 100 Manufacturing Cotton Payrolls Consum ption** July 1954 June 1954 July 1953 July 1954 June 1954 July 1953 Aug. 1954 July 1954 Aug. 1953 107 98 124 109 105 107 109 114 105r 123r 116r llO r 114 119r 146 129 166 143 150 157 152 149 134 174 146 152 r 156 153r 155r 138r 164 r 158r 155r 161r 164r 93 95 75 73 103r 99 117r lOSr 131r 119r 112r 115 120 r 152 131 182 149 149 160 153 152 135 180 149 152 r 157r 153r 162r 141r 180r 165r 153r 164 166r UNADJUSTED District T o t a l ...................... A la b a m a ........................... Florida................................. Georgia................................. Lo u isian a........................... M is s is s ip p i...................... Tennessee............................ SEASONALLY ADJUSTED District T o t a l ...................... A la b a m a ........................... Florida.................................. Georgia................................. Lo u isian a........................... M is s is s ip p i...................... Tennessee............................ 102 110 129 lllr 105 107 109 109 111 100 106 108 104 133 114 106 107 111 110 131 111 D ISTRIC T S A LES *. . . . Atlanta 1 ................................. Baton R o u g e ...................... Birmingham............................ Chattanooga ........................... Jackson ................................. Jacksonville........................... Knoxville................................. M acon...................................... M ia m i...................................... Nashville.................................. New O rle a n s ...................... St. Ptrsbfl-Tampa Area . Tam p a...................................... D ISTRIC T STOCKS* . . . Adjusted July 1954 131p 12 2 p 114 113 124 132 134 117 106 110 117 130 129 156 113 134p 142 131 136p Aug. 1953 Aug. 1954 117 115 130 119 115 117 134f 117 114 102 120 12 1 142 142 146r 148 118r 127 135 126 140r 122 12 1 124 147 133 137 106 107 102 10 1 110 10 1 90 103 104 102 120 r 98 104 99 119 93 98 106 112 112 127r 117 103 124p 115 103r 95 99 117 113 127r 136p 104 48 73 12 2 r 103 96 88 107 July 1954 Aug. 1953 171 233 259 142 178 169 242 223 171 63 172 152 165 103 171 Aug. 1954 lOOp 222 141 164 111 108p 96p 107 Aug. 1953 July 1954 104 113 98 108 97r 102 r 105r 96 107 101 s ip 80 97 96p 104 lOOr lllr 112 r 95 116 100 79 92 104p 92 p 103 76p Unadjusted July Aug. 1954 1953 115p 125p 110 77 Aug. 1954 Furniture Store S a le s * / * * 106 94 103 97 Other District Indexes Departm ent Store Sales and Sto cks** Aug. 1954 91 108 95 Construction Contracts 114r 12 1 110 Aug. 1954 Construction contracts* . . . Residential.................................. Petrol, prod, in Coastal Louisiana and Mississippi** Furniture store stocks* . . . Turnover of demand deposits* 10 leading cities . . . . Outside 10 leading cities . 111 108r 117r 109 106 140r 1 To permit publication of figures for this city, a special sample has been constructed that is not confined exclusively to department stores. Figures for non-department stores, however, are not used in computing the District index. ’“ For Sixth District area only. Other totals for entire six states. **D aily average basis. Sources: Mfg. emp. and payrolls, state depts. of labor; cotton consumption, U. S. Bureau Census; construction contracts, F . W. Dodge Corp.; furn. sales, dept, store sales, turnover of dem. dep.. FRB Atlanta; petrol, prod., U. S. Bureau of Mines; elec. power prod., Fed. Power Comm. Indexes calculated by this Bank. Adjusted July Aug. 1954 1953 130 106 21.7 24.0 17.5 July 1954 135 106r 20.8 22.2 144 120 C h e m ic a ls ................................ Fabricated metals . . . . 110 Lbr., wood prod., furn. & fix. Paper and allied prod. . . Primary m e ta ls ...................... 84 144 93 Trans, equip............................... r Revised p Preliminary 172 88 210 16.9 June 1954 204 136 119 138 107 84 142 92 87 167 140 119 141 108 84r 143 93 93 170 145r 119r 165r 108r 91r 143r lO lr 98r 166r 135 2 1.1 20.2 21.6 15.9 July 1953 16.6 July 1954 144r 124 146 llO r 84r 145 93 93 175 148r 123r 174r lllr 91r 145r 102 r 99r 171r 19.2 Unadjusted July Aug. 1954 1953 200 148 162 199 201 137 144 116 17.9 19.0 15.1 July 1953 183 130 103 17.6 June 1954 Elec. power prod., total**. . Mfg. emp. by type 139 124 146 Aug. 1954 206 207 206 102 20.0 2 1.1 YORK |altimore^^HILADELPWA ^ fcW ASHIN GTO N - .- J O R e se rv e Bank C itie s • B ranch B ank C itie s mm D istric t B o u n d a ries — » Branch T e rrito ry B o u n d a ries B o a rd o f G o v e r n o rs o f th e F e d e ra l R e se r v e S y s te m RICHMOND
@FedFRASER