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ATLANTA, G E O R G IA , SEPTEMBER 30, 1956 J n % is I s s u e : R e s e r v e s . . . o r fro m T h ro u g h th e th e W in d o w M a rk e t L o w e r D is tr ic t F a r m I n c o m e in 1956 B a n k s E x te n d M o r e T erm L o a n s to B u s in e s s D is tr ic t B u s in e s s H ig h lig h t s S ix t k D if lr id S t a t is t ic s : Co n d itio 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 Cash Loans R eta il Furniture S to re O p erations W holesa le Sales and Inventories S ix t h V ift r id In d e x e s : 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 Nonfarm Em ploym ent Petroleum Production Turnover o f Dem and D eposits 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 T h e tren d o f m a n u fa ctu rin g a ctiv ity in th e D istr ic t is u p w ard , w ith e m p lo y m e n t and p a y rolls in m o st in d u stries risin g. T o ta l n o n fa rm e m p lo y m e n t is still g a in in g , an d u n e m p lo y m e n t h as d eclin ed . F arm ers are farin g a b o u t th e sa m e as la st y ear, b u t th eir to ta l 1 9 5 6 in c o m e w ill p ro b a b ly b e low er. C on su m ers co n tin u e to sp en d at n ear-record rates. B a n k lo a n s to b u sin ess h a v e in c rea se d sea so n a lly , b u t th e e x p a n sio n in oth er len d in g h as sla ck en ed . T h e reserve p o sitio n o f m em b er b a n k s in th e D istr ic t is so m e w h a t ea sier th a n in th e U n ite d S tates gen era lly . M a n u f a c t u r i n g p a y r o l l s , after adjustment for seasonal variation, rose further in July and August, reflecting increases in employment. N o n f a r m e m p l o y m e n t increased to a new seasonally adjusted high in July, with preliminary data indicating a further rise in August. I n s u r e d u n e m p l o y m e n t decreased in August more than usual for this time of year and the number of employed workers increased. p r o d u c t i o n i n B i r m i n g h a m recovered rapidly following the strike settle ment. Output in late August reached near capacity and continued near that rate in September. S te e l C r u d e p e t r o l e u m p r o d u c t i o n in Mississippi and coastal Louisiana rose more than seasonally in August, after declining in other recent months. R e s id e n t ia l 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 in August were sharply above July, but total awards declined slightly. F a r m p r i c e s of milk, peanuts, rice, and truck crops exceeded those of last year; prices of cotton, corn, hogs, beef, and chickens were lower; while prices of eggs and beef were the same. O u t p u t o f l i v e s t o c k p r o d u c t s is exceeding that of a year ago because of increased production of milk, eggs, pork, and poultry. C ro p o u tp u t is falling behind a year ago as the harvest season gains headway. was favored by dry weather during early September, but as the month ended, a hurricane damaged some crops in the southern part of Louisiana, Ala bama, and Georgia and in northern Florida. The h a rv e st C o tto n p r ic e s in August were lower than in July and in August last year. b y c h e c k in August, as measured by seasonally adjusted bank debits at District banks, is down slightly from July but well over August 1955. S p e n d in g D e p a r t m e n t s t o r e s a l e s in September, seasonally adjusted, were off slightly from August, but the third quarter was the highest quarter on record. F u r n i t u r e , r a d i o , a n d t e l e v i s i o n s a l e s at department stores in August were brisk, but sales of major household appliances still were lagging. i n s t a l m e n t c r e d i t o u t s t a n d i n g at commercial banks edged upward slightly in August, with the largest gain in loans for repair and modernization purposes. B u s i n e s s l o a n s at weekly reporting banks increased seasonally during September, but total loans, according to preliminary data, have declined. C o n su m er D e p o s i t s at District member banks, after seasonal adjustment, were slightly higher in August than in July and probably were still higher in September. b a n k b o r r o w i n g from the Federal Reserve Bank declined gradually during September and by the end of that month had reached a relatively low level. M em ber T o t a l r e s e r v e s increased somewhat during September; and, with required reserves holding at August levels, unborrowed reserves rose further. • 2 • R e s e r v e s . . . ThroughtheWindoworfromtheMarket Quite properly, we think of the commercial banker as being primarily a lender of money. Yet the banker is sometimes a borrower. Borrowing by banks, however, is a bit different from that by businessmen or farmers. Banks usually borrow for much shorter periods; frequently to redress temporary losses in their reserve funds. In many instances, they borrow through the “discount window” at their Federal Reserve Bank. Sometimes they obtain needed reserves in the Federal funds market. Bank borrowing fluctuates a great deal. It usually de clines both nationally and regionally when banks gain deposits or when their loan demand falls off. But when banks with low excess reserves are hard pressed by cus tomers for loans or when their deposits fall off, then their borrowing increases. Because many commercial banks traditionally are reluctant to go into debt, however, most of them do not borrow even then. Banks in small commu nities are particularly reluctant to borrow. Rather than do so, they usually sell Government securities or wait for loans to mature or for deposits to rise. The larger city banks, on the other hand, often supplement their reserves by borrowing. Since these banks are responsible for the lion’s share of total member bank borrowing, the most comprehensive information available is for that group of banks. Our discussion, therefore, deals largely with them. Thus far in 1956 in the Sixth District, two-thirds of the large banks in Atlanta, Birmingham, Chattanooga, Jack sonville, Knoxville, Nashville, Miami, Mobile, New Or leans, and Savannah have borrowed. Their borrowings from the Federal Reserve and other banks averaged 40 million dollars each Wednesday during the year, slightly less than in the like period of 1955. In the nation such borrowing has been much higher this year than last. The lower-than-last-year rate of borrowing by banks in this M em ber Bank B o r r o w in g s fr o m F e d e ra l R e se rv e B a n k s Sixth District and United States, 1953-56 M illions of Dollors 1953 1954 1955 1956 Total borrowings by member banks in the nation are higher this y e a r than in 1955, contrary to experience in the District. District is partly attributable to a relatively slower loan expansion in the District than in the nation; in part it was because the District gained deposits and reserves from other areas. When it was necessary for District banks to borrow, however, they relied more on discounting at the Federal Reserve than on borrowing from other banks, which was contrary to the national experience. To understand this difference requires a closer look at interbank borrowing. Borrowing from Other Banks When banks borrow from each other, they often bor row for one business day. The usual procedure is to buy (borrow) “Federal funds,” that is, sums in excess of the legally required reserves that member banks maintain at the Federal Reserve Bank. Many banks prefer to fill their temporary needs by buying Federal funds rather than by using the Federal Reserve discount window or by selling their investments. By the same token, banks with excess reserves usually prefer to sell (lend) them to another bank rather than leave them idle or invest them. The transfer of Federal funds between banks in the same city usually involves an exchange of checks, whereas a sale of Federal funds between member banks in different localities is commonly made through the Federal Reserve wire transfer service. The lending bank transfers funds to the borrower on one day, and the borrower usually re turns it the next day. Sometimes, the transaction takes another form— the borrowing bank sells Treasury bills and repurchases them the next day from the lending bank. Some banks that need Federal funds deal directly with the lending bank; others transact their business through a financial intermediary, who may or may not maintain a regular quotation on Federal funds. The rate for which such funds are bought or sold, however, is actually deter mined by the supply and demand for them. If money is hard to get, the rate on Federal funds is typically at, or only slightly below, the Federal Reserve discount rate. Otherwise a bank would borrow from the Federal Reserve rather than buy Federal funds. Thus, during July, when banks were under considerable pressure for funds, the rate at which large volumes of Federal funds were traded dropped below the discount rate on only two business days. Of course, if banks anticipate shortages of reserves for several days they may choose to borrow from the Fed eral Reserve, knowing that if the Federal funds rate declines sharply, the discount can be repaid by borrowing Federal funds. Sums involved in Federal funds transactions are large; an individual bank would usually not find it worthwhile to buy or sell less than $500,000. For that reason only the larger banks, requiring big sums, usually buy funds. Since the proportion of smaller banks is great in the Sixth District, there is less borrowing from other banks here than in some other areas. Evidently, most of this borrowing from other banks is in the form of Federal funds, although exact figures on Federal funds borrowing • 3 • are not available, for either the District or the nation. Borrowing by major Sixth District banks from other banks constitute about one-fourth of their total borrowings so far in 1956. And those banks that relied on both the Federal Reserve and other banks borrowed about equal amounts from each source. B o r r o w in g s by W e e k ly R e p o r t in g M em ber Banks Sixth District, 1955-56 - Borrow ings from F ederol R eserve Bonk ^ 1 u L ~ ' fk * 1 t h \ , A V L J F M A M J J A S O 1955 N D J * V ▼ if i F M ’ i A u i i M i J f 1A M I N | * \ J S n p f i i * T J A B orrowings 1 from 1 0 ,h er I BanKS i S . O N Sources of Borrowing and Bank Reserves Bank borrowing, either from the Federal Reserve or from other banks, makes possible more lending or invest ing by all banks. It does, however, make a difference where the banks borrow. When they go to the Federal Reserve for money, it increases the total amount that all banks combined can lend or invest. When one bank bor rows from another, on the other hand, it does not add to the total reserves of the banking system; it merely involves transferring funds from banks that have plenty of re serves to those that do not have enough and therefore leads to the most efficient utilization of bank reserves. One function of the Federal funds market is to distribute excess reserves among the thousands of member banks in the Reserve System. To sum up, bank borrowing is an important mechanism for evening up pressures in the banking system. Since dis counting at the Federal Reserve has become an increas ingly significant aspect of monetary policy, analyses of bank borrowing are valuable in studies and discussions of the economic situation. H arry B randt i D 1956 Sixth District banks rely more on borrowing from the Federal Reserve than they do on other banks. Some District banks that borrowed also lent money to other banks. In late July, when many out-of-District institutions were pressed for funds and those in the Dis trict had ample reserves, several large District banks sold considerable amounts of Federal funds. To avoid the legal limit on size of loans (sales of Federal funds) to a single borrower, some banks traded with several others rather than with one. Since the District apparently has no regional market for Federal funds, there is little trading between institu tions here. Typically, arrangements are made by wide trans fer with correspondents or security dealers in New York. Discounting at the Federal For the larger major city banks in the District, the Federal Reserve was the principal source of funds this year, and for the majority of those that borrowed at all, it was the only source. Such borrowing was commonly collateraled by Government securities. An examination of the loans, deposits, and investments of large city banks shows us why some borrowed and some did not. During May, for example, when discounts and advances at the Federal Reserve Bank of Atlanta were at a peak, a higher proportion of borrowing banks increased their loans and lost deposits than did nonborrowers. Loss of deposits was a more important cause of borrowing in less populated centers than in the big cities. An alternative to borrowing Federal funds or to bor rowing from the Federal Reserve is to sell short-term securities. Many banks have done this in 1956. Others have done this and borrowed too. During May, a greater percentage of borrowing than nonborrowing banks in small cities sold investments. In large cities, however, such was not the case, partly because the borrowing banks there held a larger portion of their investments in securities that could not be liquidated profitably at prevailing prices. B a n k A n n o u n c e m e n ts The Federal Reserve System is happy to welcome three new banks into membership during September. On Sep tember 19, the M iam i National Bank, M iam i, Florida, opened for business. Its officers are Lo u is E . Goldman, President, and Daniel B . Hudson, Vice President and Cashier. Capital stock amounts to $900,000 and surplus to $900,000. Another new member is the City National Bank of Coral Gables, Coral Gables, Florida, which opened for business September 26. R ob ert M . Altem us is President, R . Ernest Nitzsche is Vice President, and Allan T . A bess, J r ., is Cashier. It has capital stock of $500,000 and surplus of $200,000. The First National Bank in Plant City, Plant City, Florida, a newly organized member bank, opened for business on September 28. Officers are J . T . Haynsworth, President; Charles R . Westfall, Executive Vice President and Chief Executive O fficer; and William M . R ickert, Cashier. Capital totals $300,000 and Surplus and Undivided Profits $100,020. On September 1, the Peoples Trust and Savings Bank, Goodwater, Alabama, a nonmember bank, began to remit at par for checks drawn on it when received from the Federal Reserve Bank. Officers of the bank are Sim S. Wilbanks, President; Joseph F . Gilliland, Cashier; and Avanelle T . Peoples, Assistant Cashier. Capital stock amounts to $100,000 and surplus and undivided profits to $85,531. On September 17, the Marietta Commercial Bank, Marietta, Georgia, a newly-organized, nonmember bank, opened fo r business and began to remit at par. Officers are C . G . A rant, President; James E . Berry, Vice Presi dent; and Fre d Hutchins, Cashier. Capital stock amounts to $200,000 and surplus and undivided profits to $ 1 0 0 ,0 0 0 . 4 Lower District Farm Income in 1956 Net farm income in 1956 will be down roughly 6 percent from 1955 in Sixth District states. Alabama and Missis sippi are destined to suffer the largest declines, but Louis iana will also experience a sizable drop. Florida and Tennessee are the only states in which farm income will be up from last year. Lower receipts and higher expenses are responsible for the lesser income that District farmers will receive. Earlier this year farmers’ cash receipts were exceeding receipts of a year ago by a tenth or more. There was little hope even then, however, that total receipts for the year would be great enough to raise farm income above the near record of 1955. Not only were planted acreages of major crops sharply reduced this year, but price supports for important District crops were lower. The effect of such developments, of course, could not be expected until the fall harvest, when about half of the total receipts from farm marketings is obtained. As the crop season advanced, adverse weather reduced prospective yields and turned a probable decline in receipts into a certainty. Livestock production, although growing in importance in the District, is not contributing sufficiently to sales in 1956 to lift total farm cash receipts to the 1955 level. R e c e ip t s f r o m C r o p s R e d u c e d When the year’s sales of crops in District states are totaled, the amount will be about 12 percent less than the total for 1955. Sales will be much smaller in Alabama and Mississippi, and somewhat lower in Georgia and Louisiana. There will be small gains in Florida and Tennessee. The major cause for lower sales is the reduced output of cotton and cottonseed, tobacco, peanuts, rice, and sweet potatoes, C a s h R e c e ip t s f r o m F a rm M a r k e t in g s Sixth District States -3 0 -2 0 Percent Change 1956 from 1955 -1 0 0 +10 + 20 as indicated by the United States Department of Agricul ture’s September 1 report on crop production. Lower aver age prices received by District farmers, however, also are contributing to smaller receipts from cotton, tobacco, corn, oats, and potatoes. It is those farmers who depend heavily upon the basic crops who will suffer an income loss; those growing soy beans, fruits, and vegetables will gain income. Output of soybeans, peaches, strawberries, and grapefruit is im proved, and prices are favorable. Receipts from vegetables have been especially large in 1956: Output this year is either approaching or exceeding that in 1955, and prices are averaging much higher. Gross income from vegetables, therefore, will probably be a fifth larger in 1956. The situ ation is most pronounced in Florida, where truck crops account for a fourth of the receipts from farm marketings. G r e a t e r R e c e i p t s f r o m L iv e s t o c k Producers of most livestock products will regard 1956 as a reasonably good year. Receipts from the sale of all live stock products in the District will exceed those in 1955 by roughly 6 percent. Beef and sheep and lambs are the only items not showing gains, largely because marketings have been reduced. Hogs especially are bringing in more dollars this year, since farmers are selling many more of them than they did last year. Prices are averaging lower, but they are not down enough to offset the increase in sales. The improve ment in receipts from hogs is sizable in all District states except Alabama, where the volume of sales is down. Larger sales of poultry products are raising gross in come from livestock this year. Receipts from broilers, for instance, are larger in all states except Florida. Broiler growers increased their output enough to raise their re ceipts about a tenth over those of last year, despite prices that averaged about six cents a pound less. Farmers’ gross incomes from egg sales in the District show a substantial rise, with the largest gains in Florida and Tennessee. R e ceipts from eggs are also up in Mississippi and Alabama, but they are lower in Georgia. Meanwhile, total farm costs inched higher this year. Wages rose further and, indicative of the trend in items supplied by industry, prices of building materials and hardware moved upward. Other expenses, like taxes, also increased. Feedstuffs, on the other hand, averaged less. The decline in farm income registered in much of the Dis trict, however, should not be great enough to cause seri ously depressed business and loan carryovers in very many rural areas, although in some rural communities in Ala bama, Georgia, Louisiana, and Mississippi where crop income has a large impact, business probably will be somewhat depressed. . TT A rthur H. K antner Banks Extend More Term Loans to Business Long-term loans are gaining favor with business borrowers and with bankers in the Sixth District. Late last year mem ber banks had on their books about 300 million dollars in business loans with maturities extending one year or more. About a decade earlier they had only 78 million dollars in such loans outstanding. The difference in these figures emphasizes two developments: the much greater amount of long-term credit that business in this area is now getting from banks than they were ten years ago, and the greater importance of this type of lending to member banks. In 1946, term loans, as loans with maturities of a year or over are commonly called, constituted only 14 percent of total business loans. In late 1955, such loans amounted to 21 percent of business loans in member banks’ portfolios. Despite these gains, however, banks in this area still make relatively fewer long-term loans than do member banks throughout the country. The term loan occupies a special place not only in commercial bank lending but also in the economic develop ment of a region. Although short-term bank credit pro vides businesses with a great deal of the working capital T e rm L o a n s a t S ix t h D is t r ic t M e m b e r B a n k s (Loans Outstanding for One Y e a r or More) A m o u n t O utstanding Millions of Dollars O ct. 5, N o v . 20, 1955 All businesses.................... 298.7 M anufacturing and m ining 65.5 Food, liquor, and tobacco 13.1 Textiles, apparel, and leather ....................... 9.3 Metals and metal products.................... 12.4 Petroleum, coal, chemi cals, and rubber . . . . 16.7 All other manufacturing and m ining.............. 14.0 69.2 Trade, t o t a l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wholesale1 .................... 22.1 Retail............................. 47.1 O ther, t o t a l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164.0 Sales finance companies . , 1.0 Transportation, com munication, and other public utilities........... 42.0 Construction................. 17.8 Services .......................... 45.7 All other non-financial2 . 57.5 Percent of Total Oct. 5, N o v . 20, 1946 1955 1946 77.9 20.7 6.8 100.0 21.9 4.4 100.0 26.6 8.8 .3 3.1 .3 3.3 4.1 4.3 4.5 5.6 5.8 5.8 18.7 9.6 9.1 38.5 .1 4.7 23.2 7.4 15.8 54.9 .3 7.4 24.0 12.3 11.7 49.4 .2 20.2 5.7 5.3 7.2 14.0 6.0 15.3 19.3 25.9 7.4 6.7 9.2 1 Includes commodity dealers 2 Includes real-estate firms needed for current operations, if credit is to be used to make the kind of investments that a business needs to permanently expand its scale of operations, it must gener ally be granted on an intermediate or a long-term basis. For a rapidly developing, capital-hungry region, such as the Sixth Federal Reserve District, therefore, access to long-term credit has much to do with raising income. The results of the Survey of Business Loans, con ducted by the Federal Reserve Banks as of October 5, 1955, provide a rare view of the extent to which long term credit is being provided by member banks in the area. The Survey data provide information not only on the amount of long-term bank credit being extended, but also on who is doing the borrowing and the lending and the terms under which credit is granted. The data also pro vide an opportunity to compare term lending in this area with that in the entire United States. By comparing the findings of the recent survey with those of a similar survey in 1946, one may also note changes that have occurred in the structure of term lending. Banks of all sizes located throughout the District do some term lending, but large banks overshadow small banks in the amount of such loans. Banks with deposits over 100 million dollars, for example, originated over half of the dollar volume of total term loans of member banks, whereas banks with deposits under 10 million dollars (of which there is a larger number) accounted for only 7 per cent. Small banks tend to make smaller amounts of term loans in relation to total business loans than large banks: Term loans averaged 17 percent of total business loans at banks with less than 10 million dollars in deposits, com pared with 21 percent at banks with deposits over 100 million dollars. Some people associate term loans with borrowing by industries having large investments in costly, long-lived capital equipment. Although this is true for the nation as a whole, the two top long-term borrowers in the Sixth District are retail trade and service concerns, neither of which requires large fixed investment. Together they had outstanding term loans amounting to 93 million dollars, or 31 percent of the total for all borrowers. Utility firms, including transportation and communication companies, were third with 42 million dollars. Wholesale trade, con struction, and petroleum and chemicals companies, with combined borrowings of 57 million dollars, rounded out the major long-term borrowers. Long-term business borrowers paid an average interest rate of 4.9 percent, somewhat more than the 4.5 percent paid by short-term borrowers. Moreover, large borrowers paid a somewhat lower rate than small borrowers. Small borrowers, however, rely more heavily on longterm borrowings than large borrowers. Sixty percent of the amount outstanding late last year was to the credit of firms with less than a million dollars in assets. Almost a third originated with businesses smaller than 250,000 dol lars. The smallest size group of borrowers, those with assets of less than 50,000 dollars, however, accounted for only 9 percent of the dollar total in 1955; but this repre sented almost a half of the total number of term loans. Moreover, small businesses secured over a half of their total bank credit through long-term loans, substantially more than larger borrowers did. Term lending has been, and continues to be, less im portant in the District than in the nation. Nevertheless, term lending has been increasing in importance in the Dis trict, whereas in the nation it has remained unchanged. W . M . D a v is 6 S ix th In s t a lm e n t C a s h D is tr ic t L o a n s S ta tis tic s C o n d it io n o f 2 7 M e m b e r B a n k s in L e a d in g C i t i e s (In Thousands of Dollars) Percent Change Lender Federal credit unions . . ., State credit unions . . . . Industrial b a n k s................. , Industrial loan companies . Small loan companies . . ., Commercial banks . . . . No. of Lenders . . 36 . . 17 . . S . . 11 . . 31 . . 32 R e t a il F u r n it u r e Volume August 1956 from July August 1956 1955 + 12 +7 +3 +1 —6 Outstandings August 1956 from July August 1956 1955 +5 + 17 +2 + 18 —1 +5 +6 +1 +9 +1 + 22 +1 —11 +8 +0 +4 +1 + 10 —6 S to re O p e r a t io n s Percent Change August 1956 from Item______________________________________________________________ July 1956__________August 1955 Total s a l e s ........................................ —1 + 11 Cash s a l e s ........................................ + 19 +2 Instalment and other credit sales —1 + 11 Accounts receivable, end of month . +2 +6 Collections during month . . . . +3 +4 Inventories, end of month . . . . +3 +7 W h o le s a le S a le s and In v e n t o r ie s * Percent Change Sales Aug. 1956 from Juy Aug. No. of Firms 1956 1955 +4 +5 60 +8 + 16 10 +2 — 14 6 + 17 + 24 10 + 64 +3 7 54 + 17 + 11 Inventories Aug. 1956 from July Aug. 1956 1955 — 14 +21 —7 +29 —5 +3 +6 +7 +5 + 17 + 4 —3 No. of Type of Wholesaler Firms Grocery, confectionery, meats . . 61 Edible farm products . . . . . 11 Drugs, chems., allied prod. . . . 8 Tobacco ............................... . . 10 Dry goods apparel . . . . . . 9 Automotive.......................... . . 5‘. Electrical, electronic and appliance goods . . . . . . 11 +7 —1 —3 9 —2 Hardware.............................. . . S + 13 8 +5 + 10 +1 Plumbing and heating goods. . . 23 +8 20 +8 +1 +1 Lumber, construction materials . 9 + 17 —4 7 —5 + 68 Machinery: equip, and supplies . 30 +22 +5 + 12 26 +1 Iron and steel scrap and waste materials......................... . . 5 — 29 —8 -'Based on information submitted by wholesalers participating in the Monthly Wholesale Trade Report issued by the Bureau of the Census. D e p a rtm e n t S to re S a le s a n d In v e n t o r ie s * Percent Change Sales Aug. 1956 from July Aug. 1956 1955 + 16 + 10 + 20 + 10 + 19 + 12 + 16 +6 + 10 +8 + 12 +5 + 15 +6 8 Months 1956 from 1955 +7 +6 +9 +4 + 10 +7 +4 +6 +8 +4 +3 +2 +0 +1 +7 + 19 +4 +9 + 12 +7 +6 +6 +7 +5 +3 Inventories Aug. 31, 1956, from July 31 Aug. 31 1956 1955 +9 + 12 +7 +5 Place ALABAMA .......................... Birmingham..................... M obile.............................. Montgomery..................... +4 FLORIDA .............................. + 13 Jacksonville..................... +6 + 10 Orlando............................. St. Ptrsbg-Tampa Area . . —0 +2 St. Ptrsbg..................... +9 +4 + 10 +1 T a m p a .......................... —2 —3 GEORGIA .............................. + 23 +8 + 10 +4 A tla n ta **......................... + 26 +9 + 10 +1 Augusta............................. + 18 +3 Columbus......................... +21 +2 +7 + 12 M acon.............................. + 14 +8 + 17 + 11 Rome** ............................. + 25 +24 + 2 Savannah** ..................... +8 LOUISIANA.......................... + 27 +7 +9 + 11 Baton Rouge .................... + 19 + 17 +28 + 13 New Orleans..................... +30 +8 +6 +6 MISSISSIPPI ...................... + 22 + 12 +2 + 11 Jackson ............................. + 26 + 14 +9 +2 M eridian**...................... + 14 +9 TENNESSEE ......................... + 20 +9 +8 +7 Bristol (Tenn. & V a.)** . + 27 +s + 20 + 18 Bristol-KingsportJohnson City** . . . . + 25 +6 +4 Chattanooga ..................... + 21 + 12 +4 —2 Knoxville......................... + 15 +3 +8 +2 N ashville.......................... + 23 + 19 +7 +4 +7 D ISTR IC T............................. + 19 +9 +7 +8 +8 '"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 con structed that is not confined exclusively to department stores. Figures for non-depart ment stores, however, are not used in computing the District percent changes. Percent Change Sept. 19,1956, from Item Loans and investments— T o ta l................................. Loans— N e t .......................... Loans— Gross........................ Commercial, industrial, and agricultural loans . Loans to brokers and dealers in securities . . Other loans for purchasing or carrying securities . 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 v a u lt......................... Balances with domestic banks Demand deposits adjusted . . Time deposits...................... U. S. Gov’t deposits . . . . Deposits of domestic banks . Borrowings . . * . . . . Sept. 19, 1956 August 22, 1956 Sept. 21, 1955 3,343,341 1,803,024 1,832,055 3,364,655 1,810,917 1,839,887 3,251,902 1,558,815 1,582,741 981,662 974,367 865,372 +1 + 13 37,481 38,297 29,276 —2 +28 52,930 165,118 32,525 562,339 1,540,317 53,144 165,818 39,500 568,761 1,553,738 41,477 147,031 27,733 471,852 1,693,087 —0 —0 — 18 —1 —1 +28 + 12 + 17 + 19 —9 508,731 722,966 308,620 509,430 51,414 261,936 2,350,369 667,061 97,005 715,923 497,768 744,528 311,442 502,325 51,325 234,189 2,374,843 664,858 112,510 659,377 19,700 572,600 793,646 326,841 497,840 48,470 277,152 2,357,818 628,400 89,601 674,190 38,000 +2 —11 —3 —9 11,000 Aug. 22, 1956 Sept. 21, 1955 —1 —0 —0 +3 + 16 + 16 —1 —6 +2 +6 +1 +0 + 12 —6 —0 +6 +8 +6 —1 +0 — 14 +9 — 44 — 71 D e b it s t o I n d iv id u a l D e m a n d D e p o s it A c c o u n t s (In Thousands of Dollars) Percent Change Aug. 1956 from 8 Mo1nQt^ ALABAMA Anniston . . . . Birmingham . . . Dothan . . . . Gadsden . . . . Montgomery . Tuscaloosa* . FLORIDA Jacksonville . Miami . . . . Greater Miami* Orlando . . . . Pensacola . . St. Petersburg . . . . . . . . August 1956 July 1956 August 1955 July 1956 35,877 608,406 22,872 29,106 253,566 132,113 39,503 36,161 587,678 21,748 31,099 240,089 127,188 41,727 33,579 596,594 22,162 30,206 224,806 116,381 39,358 —1 591,532 588,560 904,835 121,698 78,991 122,656 256,900 76,619 557,589 628,583 963,454 124,793 71,809 126,974 247,526 78,686 530,113 506,898 788,538 106,653 63,257 112,991 216,139 68,273 West Palm Beach* GEORGIA 51,304 49,591 46,965 Albany . . . . 1,516,757 . 1,581,137 1,546,776 Atlanta . . . . 86,586 88,415 90,195 15,241 19,427 17,252 Brunswick . . . 87,414 92,502 101,447 Columbus . . . 7,220 8,001 4,531 Elberton . . . . 45,022 46,792 39,634 Gainesville* . . 14,378 14,450 14,904 Griffin* . . . . 99,076 98,456 . 104,915 Macon . . . . 14,369 13,651 16,618 37,041 38,226 37,734 Rome* . . . . 128,535 145,638 152,811 Savannah . . . . 27,114 48,040 53,993 Val dosta. . . . LOUISIANA 66,694 68,796 50,142 Alexandria* . . 179,481 149,281 168,949 Baton Rouge . . . 72,492 73,099 63,376 Lake Charles . . 1,200,458 1,100,669 New Orleans . . . 1,223,004 MISSISSIPPI 27,374 24,005 28,310 Hattiesburg. . . 205,533 182,436 199,311 Jackson . . . . 34,250 30,812 36,725 Meridian. . . . 17,342 16,856 15,658 Vicksburg . . . TENNESSEE 34,312 33,487 30,091 267,211 252,915 Chattanooga . . 266,075 35,524 33,272 37,103 Johnson C ity *. . 62,290 59,930 59,653 Kingsport* . . . 149,441 159,892 170,950 Knoxville. . . . . 583,102 586,635 550,975 Nashville. . . . . SIXTH DISTRICT . 7,777,100 7,582,119 7,194,668 32 citi es. . . . UNITED STATES 345 cities . . . 183,819,000 181,284,000 167,365,000 +4 +5 —6 +6 +4 —5 +6 —6 —6 —2 +10 —3 +4 —3 +3 +4 +2 + 13 +16 + 11 +4 +4 from 1955 +7 + 14 +3 —4 + 13 + 14 +0 + 15 +6 + 12 +12 + 12 +14 + 13 +2 + 16 + 15 + 14 + 25 +9 +19 + 12 +9 +2 —2 +21 +8 +8 +11 + 19 +8 + 15 + 13 +8 +8 —1 +27 +23 +42 +5 +77 + 18 +3 +7 — 14 +5 +77 —11 +6 +2 +10 —1 +8 +21 +8 +7 +7 +6 + 19 +9 +5 —3 +33 + 13 +14 + 23 +7 + 13 +9 +3 +3 +7 +3 + 18 + 13 + 19 —2 —0 + 11 +5 + 12 +4 —6 +6 + 13 + 12 + 10 +5 —5 +9 +3 +8 + 10 +1 + 10 + 10 —6 —1 +2 +4 +4 +7 +1 ’“Not included in Sixth District totals. • 7 Aug. 1955 • +11 +11 + 18 +9 + 13 +4 S ix th D is tr ic t I n d e x e s 1947-49 = 100 N o n fa rm M a n u f a c t u r in g M a n u f a c t u r in g C o n s t r u c t io n F u r n it u r e S t o r e E m p lo y m e n t E m p lo y m e n t P a y r o lls C o n tra c ts S a le s * / * * July 1956 SEASONALLY ADJUSTED District T o ta l......................... Alabama............................... F lo r id a ................................ G eorgia............................... L o u isia n a ........................... Mississippi.......................... Tennessee.......................... UNADJUSTED District T o ta l......................... Alabama............................... F lo r id a ................................ G eorgia............................... L o u isia n a .......................... Mississippi.......................... Tennessee .......................... June 1956 127 114 156 12S 127 114 154 128r 122r 121 121 120 120 120 125 113 147 127 126 114 149 128 121 121 120 D e p a rtm e n t July 1956 June 1956 124r 115r 147r 124 118r 120r 119r 117 105 151 123 117 106 151 125 101 119 118 122r 115 102 142 101 121 119 114r 138r 123 118r 120r 119r 121 120 120 S to re July 1955 121 100 120 117 S a le s and ISTRIC T S A LES * . . . Atlanta1 .............................. Baton Rouge.................... Birm ingham ..................... Chattanooga .................... Jackson ............................... Jackso n ville ..................... K n o x v ille .......................... M aco n................................ N a sh ville ........................... New O rleans.................... St. Ptrsbg-Tampa Area . T a m p a ................................ ISTRIC T STOCKS* . . . . . . . . . . . . . . . . 156p 151 137 130 140 125 130 152 151 p 155 155 147 123 166p Aug. 1955 177r 157 208r 186r 155r 187r 175r HOp 123 115 113p 128p 119 132 129 118r 130r 115 113 132 83 92 85 170r 154 190r 178r 156r 183r 174r 115p 129 115 119p 128p lllr 116r 118 117r 125r 115 126 115 91 90 June 1956 July 1955 118r 183 148 239 191 166 181 180r 153 231 189r 162 194r 179 175 145 218 183 167 198 179 177 152 224 185r 162 192r 179 145r 124r 103 122r 119r 202 116r 107 137r 121r 102r 121r 117r S to c k s** Adjusted Aug. 1956 July 1956 July 1956 110 116 104 147 122 100 119 117 Aug. 1956 July 1955 Aug. 1956 July 1956 416 330 271 282 236 250 650 251 320 344 139 162 Aug. 1955 160 157 135 138 140 125 135 158 162 156 151 164 136 161 143r 139 117r 118r 125 109 124 155 136 130 143 144 126 154 Aug. 1956 140p 147 125 118 126 115 115 140 137 138 144 121 107 163p July 1956 Aug. 1955 128 126 113 106 113 98 128r 134 107r 107r 113 131 130p 143 124 115 133 118 111 121 120 131 117 151 189 266 331 208 145 191 111 120 120 132 93 O t h e r D is t r ic t In d e x e s Unadjusted July 1956 Aug. 1955 100 110 110 151 ’ 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, how ever, are not used in computing the District index. *For Sixth District area only. Other totals for entire six states. **D aily average basis. Sources: Nonfarm and 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. All indexes calculated by this Bank. Aug. 1956 Adjusted July 1956 Aug. 1955 Construction contracts* . . . . R e sid e n tial..................................... Petrol, prod, in Coastal Louisiana and Mississippi** . Cotton consumption**..................... Furniture store stocks* . . . . Turnover of demand deposits* . . 10 leading c it ie s .......................... Outside 10 leading cities . . . . 162 161 148 lOOr . 91 90 . 109p 106r 102 . 22.5 22.8 21.3 . 24.9 24.7 23.6 18.3 . 17.9 16.9 July June July 1956 1956 1955 Elec. power prod., total** . . . Mfg. emp. by type Fabricated m etals........................ Lbr., wood prod., furn. and fix. Paper and allied prod................... Primary m e t a ls ............................ Trans, equip...................................... r Revised p Preliminary . . . . . . . . . 161 134 163 114 83 164 81 93 195 164 133 161r 114 83 163 88 93 194 158i 131 161r 112r 85r 155r 106r 96r 195r Aug. 1956 313 306 318 Unadjusted July 1956 324r 228r 396r Aug. 1955 247 284 219 148 162 161 102r 72 93 103r 106p 99 20.9 19.8 21.9 22.4 21.2 23.5 16.1 17.0 17.6 July July June 1956 1955 1956 n.a. 286 258 158 129 154 159 128 155 83 163 80 92 189 83 161 111 112 88 93 188 155r 126 152r 109r 85r 153r 105r 95r 189r n.a. Not Available YORK altimore-f(PHILADELPHIA O Reserve Bank Cities • Branch Bank Cities District Boundaries — Branch Territory Boundaries Boardof Governors of the Federal Reserve System
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