O p e r a t in g R a t i o s o f S i x t h D i s t r i c t M e m b e r B a n k s f o r

Transcription

1 V o l u m e X X V I A t l a n t a, G e o r g i a, M a r c h 3 1, N u m b e r 3 O p e r a t g R a t i o s o f S i x t h D i s t r i c t M e m b e r B a n k s f o r O n th e c e n t e r p a g e o f t h is R e v i e w t h e r e i s p r e s e n te d a t a b u la r s ta te m e n t o f t h e o p e r a t g r a t io s o f m e m b e r b a n k s o f th e S ix t h D is t r ic t f o r , g e n e r a lly s i m il a r f o r m a n d c o n te n t to th o s e p r e p a r e d f o r th e p a s t f e w y e a r s b y t h is a n d o t h e r F e d e r a l R e s e r v e B a n k s. H i e m e th o d b y w h ic h th e a v e r a g e s a r e c a lc u la t e d a n d g ro u p e d is id e n t ic a l w ith t h a t o f la s t y e a r a n d th e y e a r b e f o r e, b u t f o r th o s e u n f a m ilia r w ith t h is m e th o d a b r ie f d e s c r ip t io n i s p r o v id e d th e la s t s e c t io n o f t h is a r t ic le. T h e p r c ip a l n o v a t io n m a d e t h is y e a r s p r e s e n t a t io n f o r th e S ix t h D i s t r i c t i s a n a tte m p t to f o r m t h e m e m b e r b a n k s o f th e e x t e n t o f v a r ia t io n th e r a t io s o f d iv id u a l b a n k s c lu d e d w it h a g iv e n g r o u p. F o r t h is p u r p o s e th e r e i s s h o w n w ith e a c h g r o u p a v e r a g e f o r a n u m b e r o f s e le c te d r a t io s a r a n g e o f v a lu e s w it h w h ic h f a l l s th e m id d le 5 0 p e r c e n t o f th e r a t io s o f t h e d iv id u a l b a n k s t h e g r o u p. T h e s e tw o f ig u r e s, th e h ig h e s t a n d th e lo w e s t r a t io s w ith t h is c e n t r a l g r o u p, a r e p r t e d c o n t r a s t g t y p e b e s id e th e a v e r a g e r a t io s to w h ic h t h e y r e f e r. T h e m a n n e r o f c a lc u la t io n a n d th e s ig n ific a n c e o f th e s e a d d it io n a l f ig u r e s w i l l b e c o m m e n te d u p o n b e lo w, a n d p a r t ic u la r r e f e r e n c e w i l l b e m a d e to t h e f a c t t h a t a s m a y b e n o t ic e d f r o m th e c h a r t f o r c e r t a r a t io s th e e x t r e m e ly h ig h v a lu e s te n d t o b e b u n c h e d o n e o r tw o s t a t e s a n d t h e e x t r e m e ly lo w v a lu e s o t h e r s t a t e s. T h e p u b lic a t io n o f a v e r a g e o p e r a t g r a t io s v it e s c o m p a r is o n w ith th e r a t io s o f d iv id u a l b a n k s, a n d th e p r o v is io n o f s u c h a b a s e f o r c o m p a r is o n i s o n e o f th e p r c ip a l re a s o n s f o r w h ic h s u c h a v e r a g e s h a v e c o m e to b e p r e p a r e d a n d c ir c u la t e d. It m u s t b e b o r n e m d, h o w e v e r, t h a t c o m p a r is o n h a s n o m e a n g u n le s s th e t h g s c o m p a re d e x h ib it c e r t a a t t r ib u t e s c o m m o n. T h e o p e r a t g r a t io s o f d i v id u a l b a n k s a r e s ig n if ic a n t ly c o m p a r a b le o n ly i f th e s e b a n k s o p e r a t e u n d e r c ir c u m s t a n c e s t h a t a r e to s o m e e x t e n t s i m i l a r ; a n d th e m o re c o m p r e h e n s iv e t h is s i m il a r it y o f b a n k g c ir c u m s t a n c e s th e q O ^ m o re m e a n g f u l th e c o m - lc w p a r i s o n s. I t i s, c o u r s e, t h e a t te m p t t o d iv id e d iv id u a l b a n k s t o g r o u p s o p e r a t g u n d e r s i m il a r c ir c u m s t a n c e s t h a t s iz e c la s s if ic a t io n s a r e m a d e, b u t th e r a n g e s e x h ib it e d th e t a b le g iv e e v id e n c e o f th e c o m p le t e s u c c e s s w ith w h ic h t h is c la s s if ic a t io n d if f e r e n t ia t e s b a n k s t o s u b s t a n t ia lly s im ila r g r o u p s. T h e la c k o f e x a c t s i m il a r it y t h e b a n k g c ir c u m s t a n c e s s u r r o u n d g b a n k s a g iv e n s iz e g r o u p w o u ld s e e m to a c c o u n t f o r m u c h o f th e d iv id u a l v a r ia t io n th e o p e r a t g r a t io s b e tw e e n d iv id u a l b a n k s. F o r s u c h a s iz e g ro u p o f b a n k s t h e r e u n d o u b t e d ly w i l l b e g e n e r a l f lu e n c e s a f f e c t g e q u a lly th e p o lic y d e c is io n s a l l t h e d iv id u a l b a n k s. T o th e e x t e n t o f t h e r e la t iv e im p o r t a n c e o f th e s e g e n e r a l f lu e n c e s c o m m o n to a l l th e b a n k s th e d iv id u a l b a n k r a t io s w i l l te n d to b e c o n c e n tr a te d a b o u t a n a v e r a g e. B u t th e lig h t o f t h e m u ltit u d e o f s p e c ia l c a u s e s i t is n o t s u r p r is g t h a t a b a n k w o u ld r a r e ly f d it s r a t io s c o c id g e x a c t ly w ith th e a v e r a g e s o f it s s iz e g r o u p. A d i s c r e p a n c y b e tw e e n a n d iv id u a l b a n k s r a t io a n d th e a v e r a g e r a t io f o r th e g r o u p o f w h ic h th e b a n k is a m e m b e r r a is e s th e q u e s tio n o f th e u n u s u a ln e s s o f th e d is c r e p a n c y f r o m th e a v e r * a g e o r th e d e g re e to w h ic h th e d is - c r e p a n c y is n i $» e x t r e m e. _ c V paf'0 Sf In the preparation oi this chart the values shows by the dividual banks each size group for a given ratio were arranged descendg Br. The banks the up 25% aaa those the lower 25% were then disttibuted accordg to states. The white bars ol die chart dicate ior each state, for the selected ratios, the centage ol banks that fall the up 25%. The green bars show similarly the centage fallg the lower 25%. bar extendg above the up dotted le shows that the state dicated has a greater proportion ol banks the high range than the District as a whole; a bar extendg below the lower dotted le ihows that the state has a greater proportion ol banks the lower range than the District as a whole.

2 M o n t h l y X e r i e w o f t h e f e d e r a l R e s e r v e o f A t l a n t a f o r M a r c h CONDITION OF FEDERAL RESERVE RANK OF ATLANTA (In Millions of Dollar*) Per Cent Change Mar. 12,1941, from Mar. 12 Feb. 12 Mar. 13 Feb. li Mar Bills discounted $.01 $ Industrial'advance* ^72 U.-S. securities Total 1411s and securities F. R. note circulation Member bonk reserve deposits U. S. Gov't general deposits Foreign bsiu&posils Other deposits Total deposits...^ Total reserves Industrial advance commitments CONDITION OF 22 MEMBER BANKS IN SELECTED CITIES (In Millions of Dollars) Per Cent Change Mar.12,1941,from Mar. 12 Feb. 12 Mar. 13 Feb. 12 Mar Loans and Investments Total....$702.8 $700.3 $ Loans Total Commercial, dustrial and agricultural loans Open market papsr... 5^ Loans to brokers and dealers securitiiss Other loans for purchasg and carryg securities Realestate loans Loans to banks Other loans Inve8tm nts Total U. S. direct obligations Obligations guaranteed by U. S Other securities Z Reserve with F. R. bank Cashv«ult Balances with domestic banks Demand deposits-adjusted Time deposits U. S. Government deposits Deposits oi domestic banks Borrowgs DEBITS TO INDIVIDUAL ACCOUNTS (In Thousands of Dollars) Per Cenl change * Feb. Ian. Feb. Feb from WT,BFHMA 194^ Jan Feb Birmgham... $ 101,951 $ 124,426 $ 93, Dothan... 3,297 3,629 2, Mobile... 45,741 56,135 39, Montgomery... 24,688 28,080 26, FLORIDA Jacksonville , ,506 84, Miami... 77,259 84,296 70, Pensacola... 10,400 11,136 8, Tampa ,504 40,990 33, GEORGIA > Albany ,69? 7,486 4, Atlanta , , , Augusta... 21,637 22,422 16, Brunswick... 2,893 3,231 2, Columbus... 22,337 25,323 15, Elberton... 1,233 1,314 \ Macon... 25,478 23, , Newnan ,974 2,483 ; 1, Savannah ,364 34,728 25,896, Valdosta... 4,020 4,720 3, LOUISIANA New Orleans , , , MISSISSIPPI Hattiesburg... 10,499 12,558 4, Jackson... 30,765 34,887 29, Meridian... 13,596 14,611 11, Vicksburg... 7,293 8,402 7, TENNESSEE Chattanooga... 46,964 58,976 39, Knoxville... 33,581 43,472 32, Nashville... 87,917 99,808 78, SIXTH DISTRICT 26 Cities.... 1,214,935 1,356,520 1,076, UNITED STATES 274Cities... 35,783,000 41,133,000 32,197, RETAIL TRADE FEBRUARY 1941 (Cities lor which no dexes ace compiled) Sales for February com pared with Jan Feb Jan Baton Roups Knoxville Chattanooga.: M acon Jaefrison M ontgom ery Jacksonville....' Tampa... 0 Feb P e r h a p s th e m o s t im p o r t a n t d e fic ie n c y o f a v e r a g e o p e r a t g r a t io f ig u r e s b y t h e m s e lv e s i s t h a t t h e y p r o v id e n o d ic a t io n o f th e u n u s u a ln e s s o r s e r io u s n e s s o f a p a r t ic u la r d e v ia t io n f r o m th e a v e r a g e. A b a n k e r, f o r s t a n c y w h o s e r a t io o f lo a n s to a s s e ts is 3 0 p e r c e n t w h ile t h a t f o r h is s iz e g r o u p i s 4 0 p e r c e n t h a s n o m e a n s o f k n o w g w h e t h e r h e i s s g u la r ly d iff e r e n t f r o m h is g r o u p o r w h e t h e r th e g e n e r a l r u n o f b a n k s o f h is s iz e h a s r a t io s w id e ly v a r y g, s a y f r o m 2 0 to 6 0 p e r c e n t, s o t h a t a d e v ia t io n a s g r e a t a s h is is n o t p a r t ic u la r ly n o t e w o r t h y. I t is to p r o v id e a ro u g h a n s w e r to t h is q u e s t io n, w h ic h a r is e s th e m d o f t h e r e a d e r w h e n th e a v e r a g e s a r e c o n s id e r e d, t h a t t h e r e i s s h o w n o n th e t a b le th e h ig h e s t a n d lo w e s t r a t io s o f th e m id d le 5 0 p e r c e n t o f t h e b a n k s e a c h g r o u p. T h e s e tw o f ig u r e s, t h e r a n g e s, a r e d e t e rm e d b y a r r a n g g d ie d iv id u a l b a n k r a t io s f o r e a c h s iz e g r o u p d e s c e n d g o r d e r a n d s t r ik g o f f th e u p p e r a n d lo w e r 2 5 p e r c e n t. I f a r a t io o f a p a r t ic u la r b a n k lie s b e lo w th e lo w e r r a n g e fig u re ^ t h e b a n k e r c o n c e rn e d w i l l k n o w t h a t a t le a s t 7 5 p e r c e n t o f t h e b a n k s o f h is s iz e g r o u p h a v e r a t io s t h a t a r e la r g e r t h a n t h e r a t io o f h is b a n k ; a n d c o n v e r s e ly i f h is r a t io lie s a b o v e th e u p p e r ra n g e f ig u r e. S o m e e s t im a t e o f th e u n u s u a ln e s s o f h is r a t io t e rm s o f th e r a t io s o f o t h e r b a n k s o f h is g r o u p is t h e r e b y p o s s ib le. G la n c g d o w n th e s e r a n g e c o lu m n s t h e r e a d e r w i l l s e e t h a t f o r m a n y o f t h e r a t io s th e d is p e r s io n o f d iv id u a l b a n k s o n e ith e r s id e o f th e g r o u p a v e r a g e s i s w id e, d ic a t g t h a t e v e n th e c e n t r a l 5 0 p e r c e n t o f th e b a n k s t h a t a r e b y s e le c t io n m o s t n e a r ly a lik e, d if f e r s u b s t a n t ia lly. I n t h e c h a r t o n p a g e I I a s e c o n d v a r ia b le -^thie s t a t e w h ic h e a c h b a n k i s lo c a t e d i s t r o d u c e d a d d it io n to th e s iz e c la s s if ic a t io n to s h o w th e s o u r c e o f s o m e p a r t o f t h is w id e v a r ia t io n. T h e c h a r t s h o w s f o r s e v e r a l o f t h e r a t io s th e p e r c e n ta g e o f th e n u m b e r o f b a n k s e a c h s t a t e t h a t f e l l a b o v e o r b e lo w th e c e n t r a l r a n g e o f t h e ir r e s p e c t iv e s iz e g r o u p s. I f t h e r e w e r e n o d if fe r e n c e s b e tw e e n s t a t e s th e c o n d it io n s o f b a n k o p e r a t io n i t w o u ld te n d t o b e t r u e t h a t 2 5 p e r c e n t o f th e b a n k s o f e a c h s t a t e w o u ld l i e a b o v e a n d 2 5 p e r c e n t b e lo w th e c e n t r a l 5 0 p e r c e n t r a n g e e a c h r a t io, s c e b y c o n s t r u c t io n 5 0 p e r c e n t o f th e b a n k s o f t h e e n t ire D is t r ic t h a v e b e e n p la c e d t h e c e n t r a l r a n g e a n d 2 5 p e r c e n t a b o v e a n d b e lo w t h e c e n t r a l r a n g e e a c h s iz e g r o u p. T h e u p p e r a n d lo w e r 2 5 p e r c e n t m a r k s a r e s h o w n o n t h e c h a r t b y d o tte d l e s, a n d i t i s a p p a r e n t t h a t m a n y c a s e s c o n s id e r a b ly m o re th a n 2 5 p e r c e n t o f th e b a n k s o f a s t a t e te n d to l i e e ith e r th e u p p e r o r th e lo w e r 2 5 p e r c e n t r a n g e. F r o m t h is e v id e n c e i t m a y b e c o n c lu d e d t h a t t h e r e a r e s ig n if ic a n t d if fe r e n c e s b e tw e e n th e D is t r ic t s s t a t e s th e c o n d it io n s o f b a n k o p e r a t io n s. T h e b a r f o r F lo r id a s e r v ic e c h a r g e s, f o r s t a n c e, s h o w s t h a t 7 2 p e r c e n t o f a l l F lo r id a b a n k s h a d r a t io s o f s e r v ic e c h a r g e s to t o t a l e a r n g s a b o v e t h e c e n t r a l ra n g e f o r t h e ir r e s p e c t iv e s iz e g r o u p s, a n d p r a c t ic a lly n o n e h a d r a t io s t h a t w e re b e lo w. T h u s, s iz e g r o u p f o r s iz e g r o u p, F lo r id a b a n k s g e n e r a l l y r e c e iv e a la r g e r p o r t io n o f t h e ir c o m e f r o m s e r v ic e c h a r g e s " t h a n d o b a n k s o t h e r s t a t e s o f th e D is t r ic t. T h e b a r s s h o w a ls o t h a t F lo r id a b a n k s t y p ic a lly r e c e iv e a s m a lle r p o r t io n o f t h e ir c o m e f r o m t e r e s t a n d d is c o u n t o n lo a n s t h a n d o t h e a v e r a g e b a n k s o f t h e D is t r ic t. T h e y p a y o u t m o re o f t h e ir g r o s s e a r n g s s a la r ie s a n d w a g e s t h a n o t h e r b a n k s o f t h e D is t r ic t, b u t c o n s id e r a b ly le s s t e r e s t o n t im e a n d s a v g s d e p o s it s. C o n s is t e n t w ith t h e ir e a r n g s f r o m lo a n s, a m u c h s m a lle r p r o p o r t io n o f t h e ir a s s e t s a r e lo a n s, a n d a s o m e w h a t h ig h e r p r o p o r t io n i s k e p t c a s h.

3 M o n t h l y R e v i e w o f t i e f e d e r a l R e s e r v e S a n k o f A t l a n t a f o r M a r c h S i m ila r d if fe r e n c e s e x is t a l l o f th e s t a t e s e x c e p t A la b a m a, w h o s e b a n k s, e x c e p t f o r t h e ir u n u s u a lly lo w r a t io s o f t a x e s to t o t a l e a r n g s, te n d to b e m o s t n e a r ly c o m p a r a b le to th e a v e r a g e r a t io s. O n ly A la b a m a h a s th e m a jo r it y o f th e r a t io s th e s a m e p e r c e n ta g e o f it s b a n k s e a c h r a n g e a s th e D is t r ic t a s a w h o le. I n t e r e s t g ly, T e n n e s s e e a p p e a r s to b e th e o b v e r s e o f F lo r id a m is d is t r ib u t io n o f e x t r e m e v a lu e s, m o s t o f th e r a t io s t h a t a r e c o n s is t e n t ly h ig h F l o r i d a, b e g u n u s u a lly lo w T e n n e s s e e. W it h s t r ik g e x c e p t io n s t h a t m a y b e n o te d o n th e c h a r t, G e o r g ia a p p e a r s to b e g e n e r a lly s i m il a r to T e n n e s s e e a n d d iff e r e n t f r o m F lo r id a w ith r e s p e c t to th e d is t r ib u t io n o f e x t r e m e r a t io v a lu e s. T h e r a n g e s o f th e r a t io s o f t e r e s t a n d d is c o u n t o n lo a n s a s a p r o p o r t io n o f t o t a l lo a n s a n d n e t p r o f it s a s a p r o p o r t io n o f c a p it a l a c c o u n t s s e e m to d is t r ib u t e th e m s e lv e s m o re e q u a lly a m o n g s t th e s t a t e s. O n ly F lo r id a h a s m o re t h a n 2 5 p e r c e n t o f it s b a n k s t h e u p p e r r a n g e o f th e r a t io o f n e t p r o f it s to t o t a l c a p it a l 2 5 p e r c e n t b e g t h e p e r c e n ta g e t h a t w o u ld b e e x p e c te d i f t h e r e w e r e n o d if f e r e n c e s b e tw e e n b a n k s c a u s e d b y th e s t a t e s w h ic h t h e y a r e s it u a t e d. S c e f o r t h is p a r t ic u la r r a t io th e s t a t e s te n d to h a v e a p p r o x im a t e ly 2 5 p e r c e n t o f t h e ir b a n k s b o th t h e u p p e r a n d lo w e r r a n g e s, i t m a y t h e r e f o r e b e c o n c lu d e d t h a t th e s t a t e w h ic h a b a n k i s lo c a t e d h a s h a d l i t t l e f lu e n c e u p o n th e p e r c e n ta g e o f p r o f it s o n c a p it a l. F lo r id a s p e r c e n ta g e p r o b a b ly r e s u lt s f r o m th e lo w e r r a t io o f c a p it a l t o a s s e t s o f F lo r i d a b a n k s. U n d e r s t a n d a b ly, th e s ta t e d is t r ib u t io n o f e x t r e m e v a lu e s f o r n e t c u r r e n t e a r n g s to t o t a l e a r n g s a ls o s h o w s a s m a lle r d is c r e p a n c y f r o m th e e x p e c te d d is t r ib u t io n t h a n d o a n y o f th e o t h e r e a r n g s r a t io s. A lth o u g h m a r k e d c o n c e n t r a t io n s a r e o b s e r v e d f o r t h e r a t io s t h a t s h o w b r e a k d o w n s o f th e e a r n g s a n d e p x e n s e ite m s, th e s e c o n c e n t r a t io n s te n d to b e o f f s e t t g th e a g g r e g a t io n o f th e s e e a r n g s a n d e x p e n s e s t o th e n e t f ig u r e. N o s t a t e h a s m o re th a n it s e x p e c te d p e r c e n ta g e o f b a n k s w ith h ig h n e t e a r n g s, a n d o n ly M is s is s ip p i h a s m o re t h a n it s e x p e c te d p e r c e n ta g e o f b a n k s w ith lo w e a r n g s. T h is c h a r t s h o u ld s e r v e a s a r e m d e r t h a t t e r p r e t g th e h ig h n e s s o r lo w n e s s o f a g iv e n r a t io o f a n d iv id u a l b a n k im m e d ia t e r e f e r e n c e s h o u ld b e m a d e t o th e p a r t ic u la r b a n k g c ir c u m s t a n c e s e x p e r ie n c e d b y t h a t b a n k ; f o r th e h ig h n e s s o r lo w n e s s o f th e r a t io o f th e b a n k c o u ld h a r d ly b e c o n s id e r e d u n u s u a l i f a l l th e b a n k s o f th e s a m e s t a t e w e r e s i m il a r ly h ig h o r lo w. ^ C o m p a r a b le d a t a o n s o m e o f th e o p e r a t g r a t io s h a v g n o w b e e n c o m p u te d f o r t h r e e y e a r s, th e p o s s ib ilit y o f y e a r to y e a r c o m p a r is o n s w o u ld s e e m to e x is t, b u t c o n s id e r a t io n s o f s p a c e p r o h ib it t h e p u b lis h g a t t h is t im e o f th e c o m p le te s e r ie s o f t h r e e y e a r s d a t a. F o r th e m o s t p a r t t h e r a t io s b o th f o r t h e D is t r ic t a s a w h o le a n d f o r th e s iz e g r o u p s s e p a r a t e ly s h o w o n ly m o r d if fe r e n c e s o v e r th e p e r io d a n d f e w i f a n y m o v e m e n ts t h a t c o u ld b e c a lle d t r e n d s. I n t h e t a b le b e lo w s o m e o f d ie m o re t e r e s t g d e v e lo p m e n ts a r e s h o w n. O n e m u s t b e w a r n e d, h o w e v e r, o f th e d a n g e r o f d r a w g s t r o n g c o n c lu s io n s f r o m th e f o r m a t io n t h e t a b le, f o r m a n y o f th e c a s e s w h e r e th e r a t io s o f a p a r t ic u la r s iz e g ro u p a p p e a r to h a v e c r e a s e d o r d e c re a s e d o v e r t h e p e r io d, i t c a n b e s h o w n t h a t th e s e m o v e m e n ts r e f le c t c h a n g e s th e c o m p o s it io n o f t h e g r o u p s r a t h e r t h a n th e r a t io s o f id e n t ic a l b a n k s. D u r g th e y e a r s to th e t o t a l d e p o s it s o f b a n k s th e U n ite d S t a t e s a n d th e S ix t h D i s t r ic t a s w e ll w e re C ontued on page 17 SIXTH DISTRICT BUSINESS INDICATORS Indexes ( average = 100, except as noted) Adjusted Unadjusted Feb. Jan. Feb. Feb. Jan. Feb BETAIL SALES* ( Av. = 100) DISTRICT (47 Firms) Atlanta Birmgham Nashville New Orleans BETAIL STOCKS DISTRICT (21 Firms) Atlanta Birmgham Nashville New Orleans WHOLESALE SALES TOTAL Groceries Dry Goods Hardware Drugs CONTRACTS AWABDED _ DISTRICT r 66 Residential Others r Florida G t e S i:::::::::::::.:: Louisiana Mississippi Tennessee BU BUILDING PERMITS 20 CITIES Atlanta Birmgham Jacksonville Nashville H New Orleans PIG IRON PRODUCTION*... Alabama COAL PRODUCTION* ( Av. = 100) TWO STATES r AlnbnmA COTTON CONSUMPTION* THREE STATES Alabama G m orai* l/o EMPLOYMENT (1932 Av. *= 100) SIX STATES...} Alabama Florida qsssfc V LoubSuia Mississippi... H Tennessee PAYROLLS (1932 Av. 100) SDC STATES Alabama Florida H9 110 Georgia Louisiana Mississippi Tennessee Jan. Dec. Jan. ELECTRIC POWER PRODUCTION* }? SDC STATES r 309 Alabama z Florida^ r 631 Georgia Louisiana r 670 Mississippi r 81 Tennessee Statistics (000 Omitted) Feb. Jan. Feb. Year to Date COMMERCIAL FAILURES Number(Actual not 1000's) Liabilities....$ 331 $ 303 $ 622 J ,106 Jan. Dec. Jan. FARM INCOME** SIX STATES... 64,700 83,955 51,175 Alabama... 5,918 10,866 5,681 Florida... 13,996 14,129 11,022 Georgia... 8,590 11,951 5,856 Louisiana... 9,201 10,092 6,635 Mississippi... 9,398 17,960 9,849 Tennessee... 17,597 18,957 12,132 *Indexes of retail sales, electric power, coal, and pig iron production, and of cotton consumption are on a daily average basis. Includes Governm ent benefit paym ents, r = R evised.

4 F o r f o o f n o t e s s e e p a g e 17. M o n t h l y R e v i e w o f t h e f e d e r a l R e s e r v e B a n k o f A t l a n t a f o r M a r c h A V E R A G E O P E R A T I N G R A T I O S O f M E M B E R B A N K S G ro u p e d a c c o rd i $2504)00 $500,000 G ro u p s -w ith a v e r a g e d e p o s its o f... U p to to to $2504)00 $500,000 $14)004)00 N u m b e r o f b a n k s e a c h g ro u p Average Range with Average Range with Average Range with ol which fell middle of which fell middle ol which fell middle Group 50%of the Group 50% of the Group 50% of the banks banks banks R A T IO S T O T O T A L E A R N IN G S : % % % % % % In te re s t a n d d is c o u n t o n lo a n s In te re s t a n d d iv id e n d s o n s e c u r itie s T r u s t d e p a rtm e n t e a m g s... ( i ) ( i ) ( i ) S e r v ic e c h a rg e s A ll o th e r e a m g s T o ta l e a m g s S & la rie s a n d w a g e s In te re s t o n tim e a n d s a v g s d e p o s it s R e a l e s ta te t a x e s O th e r t a x e s A ll o th e r e x p e n s e s T o ta l e x p e n s e s N e t c u rre n t e a r n g s N e t c h a rg e - o ffs, e tc N e t p r o fit s R A T IO S T O T O T A L C A P IT A L A C C O U N T S : N e t c u rre n t e a r n g s ) N e t c h a rg e - o ffs, e tc L5 N e t p r o fits C a s h d iv id e n d s d e c la r e d R e a l e s ta te a s s e t s R A T IO S T O T O T A L A S S E T S : T o ta l e a r n g s T o ta l e x p e n s e s N e t c u rre n t e a r n g s N e t c h a rg e - o ffs, e tc N e t p r o fit s L o a n s S e c u r it ie s R e a l e s ta te a s s e t s ) C a s h a s s e t s A ll o th e r a s s e t s T o ta l a s s e t s T o ta l c a p it a l a c c o u n ts R A T IO T O E A R N IN G A S S E T S : 4 T o ta l c a p ita l a c c o u n ts R A T IO S T O T O T A L D E P O S IT S : T o ta l c a p it a l a c c o u n ts T im e d e p o s its R A T IO T O T IM E D E P O S IT S : In te re s t o n tim e a n d s a v g s d e p o s its R A T IO S T O L O A N S : In te re s t a n d d is c o u n t o n lo a n s R e c o v e rie s o n lo a n s... 2 J2.2 I oo * ^ L o s s e s o n lo a n s A N e t re tu rn o n lo a n s R A T IO S T O S E C U R IT IE S : In te re s t a n d d iv id e n d s o n s e c u r itie s R e c o v e rie s o n s e c u r itie s P ro fits o n s e c u r itie s s o ld JS L o s s e s o n s e c u r itie s N e t re tu rn o n s e c u r itie s R A T IO T O T O T A L D E C E M B E R L O A N S : D e c e m b e r s ta llm e n t lo a n s (s c h e d u le A - l)

5 M o n t h l y R e v i e w o f t h e F e d e r a l R e s e r v e B a n k o f A t l a n t a f o r M a r c h I N T H E S I X T H F E D E R A L R E S E R V E D I S T R I C T I N to s iz e o f D e p o s its $ 1,0 0 0,0 0 0 $ 2,0 0 0,0 0 0 to to $2,0 0 0,0 0 0 $ 5,0 0 0, Average Range with Average Range with of which fell middle oi which fell middle Group 50%of the Group 50%of the banks banks % 60.6 % % 58.2 % (!) ( i ) A ll $5,000,000 D istric t to O v e r M e m b e r $10,000,000 $10,000,000 B a n k s Average R a n g e w i t h i n Average R a n g e w i t h i n Average of w h i c h f e l l m i d d l e of w h i c h f e l l m i d d l e of Group 50% o f t h e Group 50% o f t h e Group b a n k s b a n k s % % % % % (! ) : J

6 1 6 M o n t h l y R e v i e w o f t h e f e d e r a l R e s e r v e t a n k o f A t l a n t a f o r M a r c h t H! INDUSTRIAL PRODUCTION k) rqwto M TOW. MMX Prepared by the Board of Governors of the Federal Reserve System In d u s t ria l a c tiv ity an d em p lo ym e n t c rea s e d fu rth e r F e b ru a ry a n d th e f irst h a lf o f M a rc h. B u y g b y p ro d u c e rs a n d co n su m e rs co n t u e d la rg e vo lu m e an d w h o le sa le co m m o d ity p ric e s, p a r tic u la r ly o f im p o rts, a d va n ce d " HjuSulftC umes \ MANURMTURES ^ M1NERAL8 V Federal Beserve dex of physical volume of production, adjusted ior seasonal variation, 1935*1939 average = 100. Subgroups, shown are expressed terms of pots ia the total de*. By months. January 1935 to February WHOLESALE p r ic e s o f b a s ic co m m o d ities r ^ y 'V r p FOODSTUFFS av V - e... - v v - -z/y INDUSTRIAL MATERIALS V -\lv V Bureau of Labor Statistics' dex based on 12 foodstuffs and 16 dustrial materials. August 1939 = 100. Thursday figures. January to March MEMBER BANKS IN 101 LEADING CITIES I93S * Wednesday figures, January 3, 1935 to March 12, Commercial loans, which clude dustrial and agricultural loans, represent prior to May 19, 1937 so-called Other Loans" as then reported. MONEY RATES IN NEW YORK CITY V A v TREASmr b ills TR 1U& TREASURY P..» -» NOTES Ml S Weekly averages of daily yields of 3- to 5-year tax-exempt Treasury notes. Treasury bonds, and average discount on new issues of Treasury bills offered with the week. For weeks endg January 5, 1935 to March 15, V u h ISO P r o d u c t i o n I n F e b ru a ry vo lu m e o f d u s tr ia l o u tp u t, on a d a ily a ve ra g e b a s is, ro se m o re th a n se a s o n a lly, an d th e B o a rd s a d ju sted d e x a d va n ce d fro m 139 to 141 p e r c e n t o f th e a v e ra g e. In c re a s e s F e b ru a ry, a s o th e r re c e n t m o n th s, w e re la rg e s t th e d u ra b le goods d u s trie s w h e re a la rg e p ro p o rtio n o f d e fe n se p rog ra m o rd e rs h a ve b een p la c e d. A c tiv ity c o n t u e d to r is e s h a rp ly a t m a c h e ry p la n ts, a ir c r a f t fa c to rie s, s h ip y a rd s, an d th e ra ilro a d e q u ip m e n t d u s trie s. S te e l p ro d u ctio n flu c tu a ted a ro u n d % p e r c e n t o f c a p a c ity Ja n u a ry an d F e b ru a ry an d ro se to 9 9 p e r c e n t th e f irst h a lf o f M a rc h. N e w o rd e rs fo r s te e l co n t u e d la rg e a n d, d e sp ite th e h ig h ra te o f o u tp u t, u n fille d o rd e rs c rea s e d fu rth e r. M a n y o rd e rs h a ve b een p la c e d fo r d e liv e ry th e seco n d h a lf o f th is y e a r, re fle c t g th e p ro sp e ct o f h e a vy co n su m p tio n a n d som e u n c e rta ty o n th e p a rt o f s te e l u se rs reg a rd g fu tu re a v a ila b ility o f s u p p lie s. O u tp u t o f p ig iro n, c o k e, an d n o n fe rro u s m e tals w a s lik e w is e a t n e a r c a p a c ity ra te s F e b ru a ry an d u n fille d o rd e rs fo r th e se p ro d u c ts, too, w e re a t e x c e p tio n a lly h ig h le v e ls. D e m an d fo r lu m b e r co n t u e d la rg e o w g to a h ig h ra te o f c o n stru c tio n a c tiv ity an d o u tp u t w a s su sta e d la rg e v o lu m e fo r t s tim e o f y e a r. A u to m o b ile p rod u ctio n c rea s e d F e b ru a ry a n d th e f irst h a lf o f M a rc h to ab o u t the peak rate attaed la st N ovem ber. R e ta il sales o f new and used ca rs advanced to unu s u a lly h ig h le v e ls. In d u s trie s m a n u fac tu r g n o n d u ra b le g o o d s, a c tiv ity co n t u e d a t th e rec o rd le v e ls rea ch e d th e la tte r p a rt o f T h e re w e re fu rth e r c rea s e s th e co tto n t e x t ile, ru b b e r, an d c h e m ic a l d u s trie s an d a c tiv ity a t w o o len m ills a lso c re a s e d, fo llo w g a tem p o ra ry red u c tio n Ja n u a ry. In m o st o th e r l e s a c tiv ity w a s m a ta e d a t d ie h ig h le v e ls o f o th e r re c e n t m o n ths. C o a l p rod u ctio n ro se le s s th a n se a s o n a lly F e b ru a ry b u t c rea s e d c o n sid e ra b ly the first h a lf o f M a rc h w h e n, a c c o rd g to tra d e re p o rts, th e re w a s som e v e n to ry a ccu m u la tio n a n tic ip a tio n o f a p o ssib le sh u td o w n on A p r il 1 a t th e e x p ira tio n o f th e p re se n t c o n tra c t b etw een th e m e o p e ra to rs a n d th e m e rs u n io n. C o p p e r an d z c p rod u ctio n creased Fe b ru a ry and re ce n tly dom estic su p p lies of cop have begun to be supp lem en ted b y im p o rts fro m S o u th A m e ric a. O u tp u t o f c ru d e p e trole u m co n t u e d a t ab o u t the rate th at had p revailed d urg d ie three precedg m onths. V a lu e o f c o n stru c tio n c o n tra c t a w a rd s F e b ru a ry d e c l e d so m ew h at m o re th a n seas o n a lly, re fle c t g d e crea se s b o th p u b lic a n d p riv a te w o rk, a c c o rd g to re p o rts o f th e F. W. D o d g e C o rp o ra tio n. A w a rd s fo r p u b lic c o n s tru c tio n, a lth o u g h s h a rp ly re d u ce d fro m th e h ig h le v e ls rea ch e d th e la t t e r h a lf o f , w e re so m ew h at ab o ve th o se o f a y e a r ag o, an d a w a rd s fo r p riv a te c o n stru c tio n w e re, n e a rly h a lf a g a a s la rg e a s F e b ru a ry o f la s t y e a r. D i s t r i b u t i o n D is trib u tio n o f co m m o d itie s to co n su m e rs c rea s e d m o re th a n se a so n a lly fro m Ja n u a ry to F e b ru a ry. S a le s a t v a r ie ty sto re s an d b y m a il-ord e r h o u se s w e re th e la rg e s t o n re c o rd, m a k g a llo w a n c e fo r u s u a l se a so n a l ch a n g e s, an d d e p a rtm e n t sto re s a le s w e re a lso a t a h ig h le v e l. F re ig h t- c a r lo a d g s c rea s e d b y a b o u t th e u s u a l se a so n a l a m o u n t. S h ip m e n ts o f m is c e lla n e o u s fre ig h t, c o n sis t g m o stly o f m a n u fac tu red p ro d u c ts, sh o w ed a n c re a s e w h ile lo adg s o f fo rest products rose less than seaso nally and g ra shipm ents d ecled. W h o l e s a l e C o m m o d i t y P r i c e s P r ic e s o f a n u m b e r o f b a s ic im p o rts ro se s h a rp ly fro m th e e a rly p a rt o f F e b ru a ry to th e m id d le o f M a rc h. C o tto n y a m s an d g ra y goods a n d n o n fe rro u s m e tal sc ra p sh ow ed fu rth e r creases th is iod and there w ere also advances p rice s o f som e other dom estic com m odities, clu d g le a d, w heat, cotton, and o ils and fa ts. B a n k C r e d i t C o m m e rc ia l lo a n s co n t u e d to c re a s e a t m em b er b a n k s 101 le a d g c itie s F e b ru a ry a n d th e f irst h a lf o f M a rc h an d th e se b a n k s a lso p u rch a se d a d d itio n a l T re a s u ry n o tes an d b ills is su e d c o n n e ctio n w ith th e d e fe n se p rog ra m. A s a re s u lt o f th e c re a s e lo ans and vestm ents, bank deposits showed a fu rth e r m arked advance. U n i t e d S t a t e s G o v e r n m e n t S e c u r i t y P r i c e s P ric e s o f G o v e rnm e n t s e c u ritie s c rea s e d a fte r F e b ru a ry 1 5, fo llo w g a sh a rp d e c l e th e p rec e d g ten w e e k s. T h e b o n d s o n M a rc h 15 w e re ab o u t 3 % p o ts ab o ve th e ir p ric e on F e b ru a ry 15 an d a b o u t 1 % p o ts b e lo w th e a ll-tim e p e a k o f D e ce m b e r 1 0. T h e y ie ld on th is issu e, w h ich creased from 2.03 p er cent at the peak p rice s on D e cem ber 10 to 2.30 p er cent on Fe b ru a ry 15, had d ecled to 2.14 p er cen t on M arch 15.

7 M o n t h l y R e v i e w o f t h e f e d e r a l R e s e r v e B a n k o f A t l t r t t a f o r M a r c h 1 H 1 LOAN RATIO S $ $ $1,000,000 $ $ AH Under to to to to to Over District Sise group )80 $ SI.000,000 $ $ $ $ ss! l Aver Aver Aver Aver Aver Aver Average of age of age of age of age of age of age of Aver largest Aver largest Aver largest Aver largest Aver largest Aver largest Aver largest Average sample age sample age sample age sample age sample age sample age sample age as common as common as common as common as common as common as common as pub to three pub to three pub to three pub to three pub to three pub to three pub to three published years lished years lished years lished years lished years lished years lished years lished Number of banks is group : 1M * 314 Interest and dis count on loans to total earngs: , Interest and dis count on loans to total loans: O p e r a t i n g R o t h s o f S i x t h d i s t r i c t M e m b e r B a n k s f o r C ontued fro m page 13 c o n t u o u s ly c r e a s g, a n d t h is c r e a s e w a s v e r y g e n e r a lly s p r e a d th r o u g h o u t t h e b a n k g s y s t e m. M o s t b a n k s, t h a t i s, h a v e b e e n t e n d g to g r o w la r g e r, a n d h a v e b e e n t e n d g, t h e r e f o r e, to le a v e t h e ir o r ig a l s iz e g r o u p, a n d to m o v e t o th e n e x t la r g e r g r o u p. T h e e f fe c t o f t h is g r o w t h is c le a r ly a p p a r e n t th e t a b u la t io n o f th e n u m b e r s o f b a n k s e a c h s iz e g r o u p d u r g t h e t h r e e y e a r s, th e n u m b e r s t h e s m a ll g r o u p s c o n s is t e n t ly d e c l g a n d t h e n u m b e r s th e la r g e g r o u p s c o n s is t e n t ly c r e a s g. I f t h e c o m p le te s e r ie s w e r e h e r e r e p r t e d i t w o u ld b e n o t ic e d th e t a b u la t io n t h a t th o s e r a t io s t h a t te n d to c r e a s e f r o m t h e s m a ll to t h e la r g e s iz e g r o u p s a n y o n e y e a r a p p e a r a ls o to b e d e c l g e a c h s iz e g r o u p d u r g th e p a s t th r e e y e a r s. C o n v e r s e ly, th o s e r a t io s t h a t te n d to d e c r e a s e f r o m th e s m a ll to th e la r g e s iz e g r o u p s a p p e a r a ls o to b e c r e a s g d u r g t h e p a s t t h r e e y e a r s. B u t a s u b s t a n t ia l p a r t o f th e s e a p p a r e n t t r e n d s i s t h e d ir e c t r e s u lt o f t h e m o v e m e n t t o d ie la r g e r g r o u p s o f b a n k s w ith lo w e r F o o ta o tm to T a b la o f O p e r a t g R a tio s 1. Trust department earngs for those few banks the smaller groups havg trust departments were cluded with "all other earngs,' sce an average ratio of trust department earngs to total earngs would mean little when derived by dividg the trust earngs of a few banks by all the banks the group. The difference between the ratios shown ior the two largest groups is not itself significant sce a far larger proportion of the the largest group had trust departments than those the next smaller group. The ratios of trust department earngs to total earngs for those banks havg trust departments were, by groups, as follows : Number % of Banks $1,000,000 to $ 2,000, ,000,000 to <5,000, $5,000,000 to $10,000, Over $10,000, The significance of the distction between real estate and other taxes must be carefully terpreted sce state laws of real estate taxation are particularly varied, 3. All the ratios of group 1 banks contag net charge-offs or net profits are unreliable. Okie of the banks of this group charged off over 200 cent of its earngs durg the year, which, with only 13 banks the group, is responsible for makg the ratios of net charge-offs some 15 cent higher and of net profits some 15 cent lower than would otherwise have been the case. 4. Earng assets are defed here as the total of loans, securities, and real estate assets. 5. In these cases a few ratios unusually high or unusually low have caused the average to lie outside of the middle 50 cent group. The fact that this can occur is strong evidence of the usefulness of the ranges, for any such case an arithmetic average is not representative of tne typical banks the group. It will be noticed that the average ratio of losses on loans to loans lies consistently beyond or near the up limit of the range, dicatg that for all groups the arithmetic average of this ratio is raised.by the non-typieal losses of a few banks. r a t io s th e f ir s t c a s e a n d w ith h ig h e r r a t io s t h e s e c o n d. T h a t t h e r e h a s b e e n le s s c h a n g e th e c o n d it io n s o f d iv id u a l b a n k s t h a n o n e w o u ld b e a p t to c o n c lu d e f r o m d ie t a b le is d ic a t e d f ir s t b y th e s m a lle r t r e n d s s h o w n f o r t h e e n t ire D is t r i c t, a n d b y t h e s m a lle r t r e n d s s h o w n th e a v e r a g e s c o m p u te d f o r b a n k s c o m m o n to th e p a r t ic u la r s iz e g r o u p s f o r a l l t h r e e y e a r s. ^ I n c o m p u t g th e a v e r a g e o p e r a t g r a t io s, th e d iv id u a l r a t io s f o r e a c h b a n k a r e f ir s t s e p a r a t e ly c a lc u la t e d. F o r e a c h b a n k th e it e m s o f c o m e a n d e x p e n s e a r e d e t e r m e d b y a d d g to g e th e r th o s e ite m s a s r e p o r t e d t o t h is B a n k th e tw o h a lf - y e a r ly s ta te m e n ts o f e a r n g s m a d e b y e a c h m e m b e r b a n k, a n d th e a s s e t a n d l i a b i l i t y it e m s p r e v a il g d u r g th e y e a r a r e e s tim a te d b y a v e r a g g th e v a lu e s o f th e s e ijte m s a s r e p o r t e d th e t h r e e c o n d it io n s ta te m e n ts c a lle d f o r d u r g t h e y e a r. F r o m th e s e tw o s e ts o f d a t a th e o p e r a t g r a t io s o f e a c h b a n k a r e c o m p u te d. T h e d iv id u a l b a n k s a r e th e n d iv id e d t o s e v e n s iz e g r o u p s, t o t a l d e p o s it s b e g u s e d a s t h e m e a s u r e o f s iz e, a n d t h e p u b lis h e d r a t io s f o r e a c h s iz e g r o u p a r e c o m p u te d b y a v e r a g g th e r a t io s f o r t h e b a n k s t h e s iz e g r o u p. T h is p r o c e s s h a s n o w b e e n f o llo w e d t h is a n d m o s t o f th e o t h e r F e d e r a l R e s e r v e D is t r ic t s f o r th r e e y e a r s. T h e f a c t t h a t th e a v e r a g e v o lu m e o f a b a n k s a s s e t s a n d l i a b il it i e s t h r o u g h o u t th e y e a r m u s t o f n e c e s s ity e s tim a te d f r o m th e a m o u n ts o f th o s e ite m s r e p o r t e d a s o f t h r e e o r f o u r d a te s d u r g th e y e a r, t r o d u c e s th e p o s s ib ilit y o f s o m e u n r e l ia b il it y t o th e d a t a. T h e v o lu m e o f o u t s t a n d g lo a n s p o s s e s s e d b y b a n k s s o h e a v ily a g r ic u lt u r a l a r e g io n a s th e S ix t h D i s t r i c t v a r ie s c o n s id e r a b ly th r o u g h o u t t h e y e a r, a n d a s y s te m o f q u a r t e r ly r e p o r t s, p a r t ic u la r ly w h e n e ith e r th e s p r g o r f a l l r e p o r t i s f r e q u e n t ly o m it t e d, i s n o t c a p a b le o f y ie ld g s u f f ic ie n t ly a c c u r a t e r a t io s o f lo a n s to t o t a l a s s e t s o r o f t e r e s t a n d d is c o u n t o n lo a n s to lo a n s to m a k e s ig n if ic a n t t h e s m a ll d if fe r e n c e s t h a t a p p e a r f r o m y e a r to y e a r. A s s e t a n d l i a b i l i t y f ig u r e s a r e a ls o s u b je c t to d if f ic u ltie s o f t e r p r e t a t io n f o r th e r e a s o n t h a t t h e y v o lv e a r b it r a r y a n d s o m e tim e s p a r t ia l ly d is s im ila r m e th o d s o f v a lu a t io n. A c c o u n t g p r a c t ic e c o n s is t s a s e r ie s o f w o r k g r u le s w ith w h ic h s e c u r it ie s, b a n k g h o u s e, a n d s o m e o t h e r a s s e t s a r e v a lu e d. E v e n i f th e c o n c e p t o f s o u n d b a n k g d id n o t e n c o u r a g e th e w r it g d o w n o f a s s e t s, t h e r e w o u ld b e l i t t l e r e a s o n to b e lie v e t h a t th e f ig u r e s a r e r e p o r t e d o n a b a s is s o n e a r ly id e n t i c a l a s to g iv e s ig n ific a n c e to v e r y s m a ll d if fe r e n c e s b e tw e e n D is t r ic t s, b e tw e e n s iz e g r o u p s, o r f r o m y e a r to y e a r, r a t io s c o n t a g s e c u r itie s o r r e a l e s t a t e. E H R V

8 M o n t h l y R e v ie w 18 o f t h e f e d e r a l R e s e r v e B a n k o f A t la n t a f o r M a r c h d i s t r i c t S u m m a ry o f B u s e s s C o n d itio n s In F e b r u a r y t h e re w e re f u r t h e r g a s t r a d e a n d d u s t r ia l g r e a te r th a n a y e a r a g o. A lt h o u g h t h e re w a s a d e c l e o f 5 p e r c e n t n u m b e r o f b a le s o f c o tto n c o n s u m e d b y m ills th e a c t u a l A la b a m a, a c t iv it y th e S ix t h D is t r ic t. D e p a rtm e n t s to r e s a le s c r e a s e d G e o r g ia, a n d T e n n e s s e e m o re a s c o m p a re d w it h th e lo n g e r m o n th o f J a n u a r y, th e d a ily r a t e th a n d e c l e d th e y s lig h t ly u s u a lly c r e a s e d. A d v a n c e s c r e a s e s c o a l, do le s s th a n F e b ru a ry, u s u a l, and w h o le s a le s a le s s u r a n c e s a le s lif e d u s t r ia l a c t iv it y a re d ic a t e d by c o tto n c o n s u m p tio n, p r o d u c tio n o f p ig ir o n a n d c o n s t r u c t io n c o n t r a c t s a w a r d e d, a n d b u ild g p e r m it s. B u s e s s f a ilu r e s, p o t o f li a b il it i e s, w e re s o m e w h a t la r g e r F e b r u a r y th a n J a n u a r y, b u t w e re 4 7 p e r c e n t le s s th a n t h e y w e re a y e a r a g o. In c r e a s e d f u r t h e r b y 3 p e r c e n t to a n e w h ig h D is t r ic t, a n d w a s 2 7 p e r c e n t g r e a t e r th a n y e a r. In n e s s d a y s a n d s h o r t e r th a n F e b r u a r y la s t y e a r b y o n e, d e p a r t m e n t s t o r e s a le s c r e a s e d s u b s t a n t ia lly o v e r J a n u a r y a n d w e re le v e l f o r th e F e b r u a r y la s t th e c u r r e n t s e a s o n, A u g u s t t h ro u g h F e b r u a r y, c o n s u m p tio n h a s b e e n 1 1 p e r c e n t g r e a t e r th a n t h a t p a r t o f th e p r e v io u s s e a s o n. F e b r u a r y c o n s u m p tio n th e c o u n t r y g a e d 6 p e r c e n t o v e r J a n u a r y a n d w a s u p 2 4 p e r c e n t fro m ru a ry F e b ru - la s t y e a r. T h e ra te F e b r u a r y, w h ic h w a s s h o r t e r th a n J a n u a r y b y tw o b u s i th e 2 4 b u s e s s d a y s o f F e b r u a r y o f p ig ir o n p r o d u c tio n A la b a m a c r e a s e d 6 p e r c e n t F e b r u a r y to a n e w h ig h le v e l t h a t w a s 2 2 p e r c e n t a b o v e t h a t o f F e b r u a r y la s t y e a r. F o r th e c o u n t r y, F e b r u a r y o u tp u t d e c l e d b y a f r a c t io n o f 1 p e r c e n t f r o m Ja n u a ry b u t 1 0 p e r c e n t g r e a te r th a n a y e a r a g o. T h e a d v a n c e o v e r J a n w a s 3 1 p e r c e n t g r e a t e r th a n a y e a r a g o. S t e e l m il l a c t iv it y u a r y w a s 4 p e r c e n t la r g e r th a n m ig h t h a v e b e e n e x p e c te d o n th e th e b a s is c e n t o f c a p a c it y, a s a g a s t a n a v e r a g e o f p e r c e n t f o r o f p a s t s e a s o n a l p e r fo r m a n c e, a n d th e d e x fo r F e b r u a r y, b o th u n a d ju s te d a n d a d ju s t e d, w a s a t th e h ig h e s t le v e l e v e r re c o r d e d f o r F e b r u a r y. T h e a d ju s te d d e x, a t p e r c e n t o f th e a v e r a g e, w a s o n ly tw o p o t s b e lo w B irm g h a m - G a d s d e n a r e a h a s r e c e n t ly been at 95 M a r c h la s t y e a r, w h ile f o r th e c o u n t r y a s a w h o le th e r a t e h a s r e c e n t ly r is e n to a r e c o r d p e r c e n t, c o m p a re d w it h fo r M a rc h th e re a c h e d N o v e m b e r a n d D e c e m b e r, w h ic h w a s th e F e b ru a ry o u tp u t o f c o a l A la b a m a and T e n n e s s e e h ig h e s t f o r a n y m o n th m o re th a n tw e n ty y e a r s. T h e B o a r d s c re a s e d f u r t h e r b y 5 p e r c e n t, a g a s t a g a o f 2 p e r c e n t f o r p r e lim a r y a d ju s t e d d e x th e c o u n t r y, a n d D is t r ic t o u tp u t w a s 8 p e r c e n t g r e a t e r th a n f o r th e c o u n t r y a s a w h o le a d v a n c e d 1 p e r c e n t F e b r u a r y, a n d w a s 1 3 p e r c e n t a b o v e t h a t fo r F e b ru a ry la s t y e a r. W h o le s a le t r a d e a ye ar ag o. th e D is t r ic t d e E le c t r ic p o w e r p r o d u c t io n t h e s i x s ta te s o f th e D is t r ic t c l e d 3 p e r c e n t F e b r u a r y, a d ro p s lig h t ly le s s th a n u s u a lly c r e a s e d 6 p e r c e n t J a n u a r y ( la t e s t a v a ila b le f ig u r e s ) to a o c c u r s, a n d w a s 1 6 p e r c e n t g r e a t e r th a n a y e a r a g o, a n d li f e n e w h ig h le v e l. s u r a n c e s a le s c r e a s e d 4 p e r c e n t o v e r J a n u a r y a n d w e re u p 1 1 p e r c e n t fro m B e c a u s e o f la r g e c r e a s e s C a sh fa rm c o m e w a s s e a s o n a lly lo w e r w a s 2 6 p e r c e n t la r g e r th a n F e b r u a r y la s t y e a r. F lo r id a and L o u is ia n a, th e D is t r ic t t o t a l o f c o n s t r u c t io n c o n t r a c t s a w a rd e d F e b ru a ry Ja n u a ry, b u t J a n u a r y In c o m e fr o m m a r k e t g s o f c r o p s a n d liv e s t o c k w e re u p 3 1 p e r c e n t, b u t G o v e rn m e n t b e n e fit p a y m e n ts w e re 6 p e r c e n t le s s. T h e c r e a s e d 2 0 p e r c e n t o v e r J a n u a r y, a n d r e s id e n t ia l c o n tr a c ts c re a s e o f 2 6 p e r c e n t f o r th e s i x s ta te s o f t h is D is t r ic t o v e r w e re 3 9 p e r c e n t la r g e r. B o th th e t o t a l a n d r e s id e n t ia l f ig u r e s J a n u a r y c o m p a re s w it h a r is e o f o n ly 2 p e r c e n t f o r th e c lu d e a n u m b e r o f p r o je c t s c o n n e c te d w it h th e n a t io n a l d e c o u n t r y a s a w h o le. T h e D is t r ic t t o t a l f o r J a n u a r y i s so m e fe n s e p r o g r a m. T h e w h a t le s s th a n i t w a s f o r t h a t m o n th o f a n d , b u t D is t r ic t t o t a l f o r F e b r u a r y w a s 5 1 c e n t g r e a te r th a n F e b r u a r y la s t y e a r, a n d r e s id e n t ia l a w a rd s w e re R e c o n n a is s a n c e PEB CENT DECREASE V PER CENT INCREASE R e t a il ] W h o l e s a i up 66 m ent g a M a rc h of c e n t 20 to ta l of fa rm e rs p la n t g 1 d ic a t e s t h a t th e f a r m e r s th e s i x u a ry c o m p a re s r ic e w it h a d ro p and g a o f 39 cen t t e n t io n s on s ta te s o f t h is D is t r ic t te n d to p la n t la r g e r a r e a s t h is y e a r th a n la s t o a ts, h a y, w h it e p o ta to e s, s w e e t p o ta to e s, b a r le y (T e n n e s s e e ), a n d ( L o u is ia n a ), b u t s o m e w h a t s m a lle r a c re a g e s c o r n, to of b a c c o, a n d p e a n u ts. N o t e n t io n s to p la n t r e p o r t is is s u e d or on rn M a r c h 1 r e p o r t s to th e D e p a rt m e n t S ix t h D is t r ic t f a r m e r s th e te n d e d to c r e a s e th e a c re a g e o a ts b y 1 7 p e r c e n t, t h a t c o tto n b e ca u se o f p r o h ib it o r y le g is la t io n. A c c o r d g to s w e e t p o ta to e s b y 1 2 p e r c e n t, th e a r e a s w h it e p o ta to e s a n d r e s id e n h a y b y 4 p e r c e n t, b a r le y T e n n e s s e e b y 5 p e r c e n t, a n d r ic e P ig I r o n P t i a l a w a r d s th e L o u is ia n a b y 2 p e r c e n t. D e c re a s e s a r e d ic a t e d o f 2 p e r C o a l P r< D is t r ic t c o m p a re s c e n t c o m w it h b a c c o a c re a g e T e n n e s s e e is d ic a t e d a t 9 p e r c e n t le s s th a n an c r e a s e o f 5 p e r ce n t fo r t h a t o f la s t y e a r w h ile G e o r g ia a n d F lo r id a s m a ll c r e a s e s a r e e x p e c te d. 37 E a s te rn A f t e r d e c l g s o m e w h a t J a n u a r y, t o t a l lo a n s a n d p e r m it s is s u e d a t v e s tm e n ts o f w e e k ly r e p o r t g m e m b e r b a n k s t h is D is t r ic t tw e n ty r e p o r t g h a v e c r e a s e d F e b r u a r y a n d th e f ir s t h a lf o f M a r c h. T o t a l c it ie s c r e a s e d lo a n s, a n d lo a n s f o r c o m m e r c ia l, d u s t r ia l, a n d a g r ic u lt u r a l 13 p e r c e n t F e b ru a ry S ix th D istric t S t a t ist ic s for F e b r u a r y 1941 c o m p a r e d w it h F e b r u a r y 1940 a n d p e a n u ts, a n d 4 p e r c e n t to b a c c o. T h e to th e S t a t e s. B u ild g 20 o f A g r ic u lt u r e a w a rd s o v e r Ja n - S ta te s, C o tto n 30 T h e a n n u a l s u r v e y c o n d u c te d b y th e U n it e d S t a te s D e p a r t c e n t. T h e m o n th s C o n tra c ts B u ild g ] la r g e r th a n f o r J a n u a r y o f o t h e r re c e n t y e a r s. an d w e re 2 1 p e r c e n t p u rp o s e s h a v e c o n t u e d to c r e a s e a n d le v e ls m a n y y e a rs. D e m a n d a re a t th e h ig h e s t d e p o s its - a d ju s te d h ave a ls o c o n t u e d to r is e a n d h a v e r e c e n t ly b e e n a t a n e w h ig h le v e l.