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MONT H LY
B USINESS
REVIE W
of

the

Volume 34

FEDERAL

RESERVE

BANK

Dallas, Texas, May 1, 1949

Dallas
Number 5

SEVENTH ANNUAL DISTRICT SURVEY OF RETAIL CREDIT STORES:
SUMMARY AND COMMENTS
A moderate expansion in total dollar sales and a substantial decline in cash sales, together with
consequent marked increases in instalment sales and receivables outstanding, constituted some of the
developments at retail credit stores in the Eleventh Federal Reserve District during 1948. These trends
are revealed by data obtained from the Seventh Annual Retail Credit Survey, conducted as part of a
nationwide project of the Federal Reserve System. In addition, the data show that the experience of
individual firms in each of the several lines of retail trade studied varied more widely in 1948 than in
other recent years, while the total volume of business in each line showed smaller changes than in any
other postwar year. The variation in the experience of individual firms reflects, in part, local conditions, operating policies, and a marked strengthening in competitive forces, as well as the effects of
economic conditions which influenced the supply of and demand for goods in the particular lines of
trade; moreover, increases in the stresses and strains within the economy brought about important
shifts in consumer purchases of various types of goods.
As in other recent years, the current survey covers data obtained from representative firms
engaged in nine lines of retail trade in which credit sales normally constitute a significant proportion
of total sales, namely, automobile dealerships, auto tire and accessory stores, and department, furniture,
hardware, household appliance, jewelry, men's clothing, and women's apparel stores.
The important items covered in the survey include total sales, cash sales, credit sales (chargeaccount and instalment), and receivables outstanding; inventories and bad-debt losses, included in
previous surveys, were omitted from the 1948 study.
Reports for the year 1948, with comparative figures for 1947, were received from 472 firms
operating 594 retail outlets. These stores, located in 72 cities and towns throughout the territory of
the Eleventh Federal Reserve District, reported aggregate sales in 1948 of approximately $960,000,000.
Although a majority of the reports and the major portion of the sales were of establishments operating
in the larger cities of the District, nevertheless, the reporting stores are well distributed among the
nine lines of trade and on a geographical basis and appear to constitute a representative sample of
these lines of retail trade in the Southwest.
The activities of national chain store outlets were reported for the most part in consolidated form
to the Board of Governors of the Federal Reserve System and are reflected in its analysis of national
retail credit developments. Consequently, the sample of firms included in the survey for the Eleventh
Federal Reserve District represents mostly independent stores and local outlets of chains operating
in limited areas. Since the main purpose of the survey is to study developments relating to credit
conditions in retail trade, those firms which sell for cash only were excluded from the sample.

Total Sales. The trend of sales in the Eleventh Federal Reserve District during 1948 in the
several lines surveyed was similar to the national pattern, but the over-all sales experience of firms in
the District was more favorable than that for the country. A detailed comparison of the percentage
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

MONTHLY BUSINESS REVIEW

changes in sales for the District and the Nation may be obtained through a study of Table I in
conjunction with Table III. The relatively moderate changes in total sales for 1948 as compared with
1947 tend to obscure the wide fluctuations that occurred during the course of the year, characterized
by three broad movements. The general hesitation in buying that prevailed dlJring the first quarter
of the year gave way to a wave of optimism, accompanied by renewed inflaTABLE I
tionary pressures which brought about a
PERCENTAGE CHANGE IN SALES-BY KIND OF BUSINESS
marked upsurge in buying during the secBY YEARS, 1945-48
ond and third quarters. This upward
Eleventh Federal Reserve District
movement, however, was followed by a
..----Percentage change in total sales----noticeable slowing down in demand dur1948 o ve r
1947 over
1946 over 1945 over
1947
1946
1945
1944
ing the final quarter of the year, especially
Ki nd of business
44
87
8
for durable goods. In some lines the net Automobile dealers _______ ________________ _ 21
tire and accessory stores __ _
51
1
5
8
sales gains for the year as a whole reflect Auto
Department stores ___ ______ _______ ____ _____
4
13
8
25
Furniture
stores
___
__
___
____
_____
__
____
___
__
_
13
5
38
11
the higher average prices prevailing dur- Hardware stores _______________ _________ _
5
15
39
20
ing the year rather than an increase in the Household appliance stores __ _
115
47
20
6
Jewelry stores _____________________________ _ - 1
-10
19
8
physical volume of goods sold.
Men's clothing stores __________________ _ - 2
Women's apparel stores ________ _____ __
5
TotaL __ _________________ _
8

1
-1
11

7
8
11

In analyzing the sales comparisons in
36
individual lines, as well as at individual
stores, several significant developments
should be taken into consideration. Of major importance were the appreciable changes in the demand
and supply relationships as a result of which the emphasis during the year shifted from problems of
production to problems of distribution and considerations of price and quality became increasingly
significant in sustaining demand. In the nondurable lines, supplies of most items had come into balance
with demand during 1947, with the result that in 1948 producers and distributors were confronted
with buyers' markets. This condition led to a marked strengthening of competition, the reappearance
of greater variety and improved qualities of merchandise, increased supplies of moderately and lower
priced items, downward readjustments in prices of some items, and a return to the widespread use
by retailers of special promotions and "mark-down" or "clearance" sales as a means of stimulating
consumer demand.
In the durable goods lines substantial backlogs of demand still existed at the beginning of 1948,
and the production of major items either reached new peaks for the year or was only moderately under
the peak output in 1947. In virtually all cases the output for the year was much larger than the
average annual production during the prewar period. Reflecting the increasing availability of goods,
the strong consumer demand maintained retail sales of such merchandise at levels well above those in
1947 during the first three quarters of the year, with buying exceptionally heavy during August and
the early part of September following the announcement of the Board of Governors of the Federal
Reserve System that controls over consumer instalment credit would be reimposed on September 20.
This buying wave was induced by the indications that credit terms under the regulation would be
somewhat more restrictive than those that had prevailed between November 1, 1947, and the effective
date of the new regulation. In the final quarter of the year buying of durable goods leveled off and,
as a consequence, sales in durables other than automobiles fell below the large volume in the corresponding quarter of 1947.
Closely associated with the improved demand and supply relationships was the increasing consumer resistance to high prices. While the prices of some items declined during the year, prices of most
commodities at retail increased further in 1948 and the averages for the year were higher than in 1947.
Moreover, the upward trend in the cost of living which continued until late in the year had the effect
of exerting pressure upon the incomes of a large segment of the population and required, to a greater
extent than for several years, consumers to choose carefully among types of goods purchased. With
their most urgent demands satisfied and with goods available in greater quantities and in wider
varieties, consumers generally pressed for lower prices and better quality merchandise. These valueconscious demands found expression in buying shifts among types and qualities of merchandise, as
well as a tendency to defer purchases whenever prices and quality of merchandise were not in line
with consumer preferences.

MONTHLY BUSINESS REVIEW

The strength of the competitive forces was manifested not only among stores in the same lines
of trade but also by the intensified efforts of concerns in each line of trade to maintain or expand their
relative share of the consumer's dollar.
The
data presented in Table IT are indicaTABLE II
tive of the diversity of experience among
N UMBER OF STORES REPORTI NG INCREASE OR DECREASE individual firms, as well as among lines of
IN SALES-BY KIND OF BUSI NESS, 1948 OVER 1947
business. The number of firms reporting
Eleventh Federal Reserve Dist rict
increases in sales during 1948 as compared
N umber of
Number of stores reporting
with 1947 greatly exceeded the number
Kind of business
stores
Increase
Decrease
h
th
79
10
t at experienced decreases; is was espeAutomobile dealers ............. _
89
44
55
cially apparent among automobile dealers
Auto tire and accessory stores ..
99
Department st ores ........................... .
66
~g
~~
and
furniture, household appliance, and
Furniture stores ............................ . 104
16
27
women's apparel stores. On the other
Hardware stores .............................
43
Household appliance stor es ........... .
36
26
2~
hand, 36 percent of all reporting stores
Jewelry stores .................................. .
42
~~
27
had smaller sales in 1948 than in 1947;
Men's cl othing stor es ..................... .
50
Women's apparel stores ................ .
66
49
17
moreover, in three lines of trade a majority
of the reporting stores experienced
TotaL .......................................... . 594
881
218
decreases in sales from 1947 to 1948.
The increase of 21 percent in the sales of automobile dealers during 1948 as compared with 1947
was much larger than that for any other line of trade, although smaller than the increase which
occurred in the preceding year. This increase reflects not only the larger supplies of automobiles available for distribution but also the continued strong demand for repairs and parts to maintain old cars
in satisfactory operation. Because of the size of the backlog of demand and the limitation on productive capacity, it has taken the automobile industry longer to meet the deficiency; consequently,
although the production of automobiles was in near-record number, supplies were still inadequate
at the end of 1948 to meet the demand.
Despite the fact, however, that the deTABLE III
mand for cars at the end of 1948 was still PERCENTAGE CHANGE IN SALES-INDEPENDENT STORES
relatively strong, there was some weakenBY KIND OF BUSINESS, 1947·48
ing in the extraordinary pressures that had
United States
prevailed throughout the postwar period,
P ercentage chan". in total . ale.
Kind of bus iness
194 8 over 1947
1947 over 1946
especially in the market for used cars and Motor-vehicle dealers............................................
17
64
for higher priced new models. One factor Accessory, tire, battery dealers......................... - 1
- 8
in the weakening demand has been that ~i~r:~~n:t~;~~~~:::::::::::::::::::::::::::::::::::::::::::::::::
~
more people are finding it diflicult to pur- Hardware stores....................................................
2
14
chase cars at existing prices in view of Household appliance dealer s..............................
5
85
J ewelry st ores........................................................ - 6
- 9
increasing pressure upon their budgets.
Men's, boys' clothing and f urnishings stores. - 5
1

Women's r eady-to-wear stores...........................

By the end of 1947 most items sold SOURCE , United States BUreau of the Cen. u•.
by auto tire and accessory stores were in
ample supply to meet consumer demand, and competitive forces were coming to the forefront. These
forces were reflected in price declines in some items and efforts to improve the quality of products;
these trends were accentuated during 1948 when competition became even keener. In an effort to
meet consumer preferences for price and quality more adequately, there was a noticeable trend
toward the improvement of product; furthermore new lines were introduced, and-in the case of
such items as tires and batteries- goods were offered in several price ranges. As the year drew to a
close the downward trend of prices of many items handled was accentuated. As pressure on consumer
budgets increased, greater inducements were offered to consumers in the form of easier credit terms.
While 1948 sales were only 1 percent higher than in 1947, the volume was maintained at an exceptionally high level.
The large volume of home building during 1948 and the strong demand for major household
appliances continued as important factors in sustaining the business of furniture and household appliance stores. On the other hand, the price increases on many items of furniture and appliances and
the inadequate supplies of goods that would meet consumer preferences from the standpoint of quality
and price served as deterrents to buying. In the field of household appliances the deferred demand for
smaller items had been satisfied in earlier years and distribution tended to slacken in 1948. In most

MONTHLY BUSINESS REVIEW

of the major durable items, however, production reached new peaks in 1948, and the increased supplies
moved rapidly into consumer hands until the fourth quarter of the year, when buying leveled off.
As a result, supplies began to accumulate in the hands of both manufacturers and distributors, necessitating some cutbacks in production.
The increase of 6 percent in the sales of hardware stores during 1948 as compared with 1947 is
indicative of the strong demand for hardware, especially builders' hardware, some items of which
continued in short supply during much of the year. As in some other lines, the high prices prevailing
for most items of hardware met with consumer resistance, with the result that as the year advanced
stores found it increasingly difficult to maintain sales of many items at existing prices.
The downward trend which began in 1946 in the sales of jewelry firms continued during 1948.
Even at the reduced level, sales in this line were still greatly in excess of those during the prewar years.
The decline in jewelry sales during most of the postwar period corresponds with the downward movement in the sales of virtually all luxury goods and reflects the shift of consumers' purchases to other
goods as supplies have become available in greater quantities.
The supplies of men's
TABLE IV
clothing and furnishings, which
WHOLESALE PRICES BY GROUPS OF COMMODITIES
were inadequate to meet the demand during the early postwar
(1926= 100)
years, had reached an equilibri...---December-----.
...--Annual average8~
Percent
Percent
um with demand during 1947.
HU8
1941
chan ge
1948
1947
change
In 1948, sales were stimulated All commodities................................... 165.0 152.1
162.3 163.2 - 1
8
177.3 196.7 -10
4
Farm products ................................ 188.3 181.2
by some downward price read170.2 178.4 - 5
6
Foods ................................................ ~79.1 168.7
justments in many items of
5
153.0 145.5
11
Other commodities-total ...... .160.7 135.2
146.7 148.0 - 1
Textile products ............. ........ 148.6 141.7
5
men's furnishings, but prices of
137.0 124.6
10
23
Fuel and lighting materials ..... 134.1 108.7
clothing continued to advance.
173.8 151.5
15
13
Metals and metal products ...... 163.6 145.0
11
202.1 191.0
6
Building materials ......................199.0 179.7
Throughout most of the year
3
185.3 203.4 - 9
Hides and leather products ...... 188.0 182.4
there was strong consumer re130.6 135.0 - 3
Chemicals and allied products 135.1 127.3
6
148.4 139.4
6
Housefumishing goods .............. 144.5 131.1
10
sistance to advancing prices, and
Miscellaneous
............ 120.5 115.5
4
118.5 121.5 - 2
this development, together with
172.1 182.0 - 5
Raw materials .................................. 178.4 165.6
8
the. fact dthat supplies
in the
157.5 154.9
3
2
I
Manufactured products .................. ~50.4 146.0
pnce an qua ity ranges pre- SOURCE, Bureau o( Labor St at; stics.
ferred by consumers were inadequate, had deterrent effects upon consumer demand.
The radical style changes in women's apparel, together with price advances on most items, had
held down the demand for women's apparel during the greater part of 1947, with the result that sales
for that year showed a slight decline. During 1948, however, there was a rebound in sales as women
adjusted to the new styles, even though prices tended to advance somewhat.
In view of the diversified business of department stores, the factors affecting sales in most of
the lines mentioned above influenced the total sales of department stores. The 8 percent increase in
sales during 1948, which was larger than that in 1947, reflects, in part, the aggressive merchandising
policies of department stores generally and the tendency to make quick adjustments to changes in
underlying conditions. These factors found expression in frequent promotion and price reduction
sales, widespread advertising, and the better assortment of improved quality merchandise.
Cash sales. The year-to-year decline in cash sales during 1948 was more general and more pronounced than in any other postwar year. Perusal of Table V indicates that eight of the nine reporting
lines of trade had smaller cash sales in 1948 than in 1947, the decreases ranging from 1 percent in
the case of department stores to 18 percent at household appliance stores. Moreover, Table V indicates
that in each reporting line cash sales in 1948 constituted a smaller percentage of total sales than in
1947. It should be observed, however, that cash sales represented 40 percent of total sales in the lines
surveyed, a much larger percentage than was characteristic of prewar years. The high ratio of cash
sales to total sales at automobile dealerships during 1948-58 percent-reflects to a considerable extent

MONTHLY BUSINESS REVIEW

the increasing tendency during recent years of consumers to raise funds to purchase automobiles, as
well as some other durable goods, by borrowing directly from financial institutions. The lowest percentage reported-15 percent-was at furniture stores, where merchandise traditionally is sold largely
on a credit basis.
TABLE V
Credit sales. The trend
tow~rd the shifting of merchanSALES BY TYPE OF BUSINESS TRANSACTION AND END-OF-YEAR
dise sales from a cash to a credit
RECEIVABLES BY KIND OF BUSINESS
basis, which has been in evidence
Eleventh Federal Reserve District
since the late war years, continPercentage change 1948 over 1947
~---->Sales
.--Recelvables end-of-year-----.
ued at a substantial rate during
Charge
Total
Charge
Instalment
Kind of business
accounts In stal ment
t\Ccounts accounts
accounts
Casb
1948. The aggregate of credit
16
101
16
25
35
8
sales at all reporting stores dur- Automobile dealers ......
Auto tire and accessory
ing 1948 exceeded that in 1947
stores ................................. -12
34
-6
45
35
-10
11
47
18
9
69
by 16 percent, or about double Department stores.............. - 1
Furniture stores ................. -17
13
30
31
8
25
the net increase in total sales. Hardware stores.................. - 7
16
65
-1
26
3
Although credit sales increased Household appliance
stores ................................. -18
4
27
17
-4
44
substantially in all reporting Jewelry
stores ..................... -14
5
17
24
5
8
17
17
9
16
21
lines, the shift from cash to Men's clothing stores...... .. -12
apparel stores.. - 6
14
13
13
16
14
credit sales was more pro- Women's
TotaL ........................... - 1
11
29
20
11
43
nounced at auto tire and accessory, hardware, and household
appliance stores. Perhaps the most potent factors contributing to the increased use of credit in 1948
were some easing in credit terms, the decrease in or the exhaustion of the backlog of savings of a
large number of families, and the pressure exerted by rising prices upon the budgets of many families,
making it necessary for them to use more of their readily available cash funds to purchase foods and
other related items sold largely on a cash basis. Retail outlets also continued aggressive efforts to
establish credit relationships with potential customers and to induce existing customers to make greater
use of their credit resources as a means of increasing the number of regular customers and the aggregate
volume of business.
TABLE VI

Charge-account sales increased
further in 1948 at stores in all reporting lines of trade except auto
Eleventh Federal Reserve District
tire and accessories, but the size of
~-::--,--:Percentnge of tot&! sal..
the gains varied considerably, rang1948C"~947
Ch~fs'
"<~~~~ts
1~:8tal~~~~
ing
from 4- percent at household apKind or business
13
pliance stores to 25 percent at auto15
Automobile dealers
..... 68
61
27
26
37
21
24
Auto tire and accessory stores ... 42
48
2~
mobile dealerships. The decline in
42
54
53
8
Department stores
38
60
charge-account sales at auto tire and
19
21
Furniture stores..
15
21
64
7
43
Hardware stores ..
46
53
47
3~
accessory stores is explained chiefly
37
35
Household appliance stores
27
32
38
16
by the marked increase in the use of
42
18
Jewelry stores. .....
37
42
45
Men's clothing stores ..
46
45
3
52
51
3
instalment credit. From Table VI it
49
2
45
53
Women's apparel stores
49
1~ will be noted that the ratios of
14
Total.
.......................... 40
44
46
45
charge-account sales to total sales
increased at stores in seven of the
nine lines of trade. The lines in which instalment sales are relatively unimportant, such as department,
hardware, men's clothing, and women's apparel stores, had the higher ratios as well as the larger
increases in such ratios in 1948 as compared with 1947.
PERCENTAGE OF CASH AND CREDIT SALES TO TOTAL SALES
BY KIND OF BUSINESS

Instalment sales increased during 1948 in all reporting lines of trade, the aggregate being 29
percent larger than in 1947. The percentage gains were impressive in the case of automobile dealers
and hardware, department, and auto tire and accessory stores. Substantial percentage gains were also
reported in all other lines except jewelry, where the increase was moderate. In those lines which handle
durable goods, the increase in instalment sales was accentuated by the larger supplies of goods and a
wider distribution among those customers who find it necessary to make use of maximum credit terms
in order to acquire such goods. It is significant, however, that despite the large percentage gains in

MONTHLY BUSINESS REVIEW

instalment sales during 1948 as compared with 1947, the aggregate of such sales last year constituted
only 14 percent of total sales. The largest percentage-64 percent-was reported by furniture stores
and reflects the f act that merchandise handled by such stores is normally handled on an instalment
basis, a trend that persisted throughout the war period in contrast to developments at most other
types of stores. At auto tire and accessory stores where 37 percent of the year's total sales were made
on an instalment basis, the increase in 1948 as compared with 1947 reflects the wider use of instalment
credit, with its longer pay-out periods, as a competitive factor in attracting customers and stimulating
sales. In the case of household appliances, the increase in the relative importance of instalment sales is
indicative of the fact that many dealers who were able to sell the available merchandise for cash or on
a limited credit basis during the period of shortages have had to shift increasingly to an instalment
credit basis as supplies have become more plentiful. At men's clothing and apparel stores, where credit
sales are handled mostly through regular charge accounts, the volume of instalment sales continued
negligible and the ratio to total sales remained unchanged in 1948 as compared with 1947.
Receivables. The continued expansion during 1948 in the volume of receivables outstanding at
reporting stores in the Eleventh District constituted merely a part of nationwide developments. From
Table VII it will be observed that the
TABLE VII
volume of consumer credit outstanding at
the end of 1948 totaled nearly $16,000,ESTIMATED CONSUMER CREDIT OUTSTANDING
000,000, representing an increase of
United States
about $2,500,000,000 or 19 percent.
(Amounts in millions of dollars)
While the increase was smaller than in
Percent
Amount outst.anding
e nd~f.y ea r
change
either of the preceding two years, it is
1948
1941
1948 over 1947
Type of credit
significant not only from the standpoint Instalment credit-tota1. .......................... . $ 8,196 $ 6,187
32
44
4,095
2,839
Sale credit-totaL ................................. .
of the amount but also because of the
Automobile ............................................
1,961
1,151
70
extent to which credit has been a factor
874
34
Department and mail order stores ..
650
20
Furniture stores ..................................
528
631
in sustaining sales. As in other recent
52
62
Household appliance stores .............. .
84
years, most of the increase during 1948
192
209
9
J ewelry stores ......................................
266
26
336
All other stores ................................. .
occurred in the instalment credit segInstalment loans.............. ..................... . 4,101
3,348
22
ment, where the rate of growth was oc- Single payment loans ................................. 2,902
2,707
7
3,612
7
casioned by a gradual lengthening of av- Charge accounts ......................................... . 3,854
Service credit ................................................
972
920
6
erage maturities, as well as a rapid rise
Total consumer credit........................ $15,924 $13,426
19
in new credit extensions. During the first
three quarters of 1948 the expansion in SOURCE: F ederal R eaer1J4 BuUetin, March 1949.
the volume of consumer instalment credit
was more pronounced than in the comparable period of 1947, but in the fourth quarter the increase
was only about one-half the amount in that quarter of 1947. This slackening in the rate of growth
of instalment credit was largely a consequence of the leveling off of consumer purchases of durable
goods in the latter part of the year. The net increase of $2,000,000,000 in instalment credit outstanding
during 1948 brought the total of such credit at the end of the year to $8,200,000,000, representing a
fourfold increase since the close of the war. In 1948 the increase in instalment sale credit, which was
about as large as in 1947, was occasioned in large part by the 70 percent rise in automobile sale credit
outstanding. While other types of instalment sale credit increased, the growth was at a much slower
rate than in 1947. The volume of outstanding instalment loans made by various lending institutions
showed an increase during 1948 of 22 percent, a rate about one-half that for total instalment sale
credit. In comparison with the large increase in instalment credit, charge-account credit rose only 7
percent in 1948. This rate was also much smaller than the 18 percent increase experienced during 1947.
In the Eleventh District the changes during 1948 in outstanding receivables varied widely, both
among the several lines of trade surveyed and as between charge accounts and instalment accounts.
Charge-account receivables reflected net declines during the year at stores in three reporting lines
of trade and showed increases of about 25 percent in two lines. In tlle other four lines the increases
generally were of moderate proportions. In four lines which handle durable goods, the net changes

MONTHLY BUSINESS REVIEW

in charge-account receivables during 1948 indicate that collections on charge accounts exceeded
new credits extended, but this development may have reflected, in part, the conversion of some charge
accounts to an instalment basis during
the course of the year. With respect to
TABLE VIII
instalment accounts the increases in receivables outstanding in seven of the
PERCENTAGE CHANGE IN SALES-BY KIND AND LOCATION
nine lines of trade were more proOF BUSINESS
nounced than the respective increases in
Eleventh Federal Reserve District
instalment sales. Moreover, in the case
.....--Percentage change 1948 over 1947----.
Num'ber
Total
Cash
OpeQ.
of
of automobile dealers and furniture
sales
s ales
credit Instalment
stores
Kind o( business by location
stores, the increases in instalment re- Automobile dealers:
Corpus ChristL _____ ______________ 3
25
32
19
24
ceivables were greater than the national
Dallas _____ ___________ ___ _ _____________ 8
28
32
10
2
_____________________ 6
F ort Worth____
average. In most of the lines handling
143
13
26
26
Galveston ______ __________________________ 4
9
74
14
24
durable goods, the increase in instalLubbock____________ __ _________ _______ ___ ____ 6
46
29
28
30
ment receivables outstanding is under- Auto tire and accessory stores:
Houston _________________________
3
37
3
-1
-3
stated to some extent because of the
Department stores:
substantial increase in the volume of
Abilene ________________ ____________ _____ _____ 3
13
10
6
-2
Austin _______ _______________ __ __________ ______ 3
19
11
1
6
instalment paper sold to financing inCorpus ChristL ____ ________ ______ ____ 3
19
10
2
-7
Dallas
______
_
______
__
_
____
_
_
_
_
_
___
_
____________
6
stitutions.
8
47
5
-9
The information on credit developments made available through the
current Retail Credit Survey and from
other sources confirms the fact that
in 1948 consumers made use of larger
amounts of credit to purchase merchandise and that many of them found
it increasingly difficult to meet credit
terms, which resulted in a noticeable
slowing down in the rate of repayments. Moreover, the changes were
most significant with respect to instalment credit, where the consumer could

Denton ________ __ _______ ___ ___ ________________
Fort Worth__________
___________
Houston ____ ___ ___ ________ _______ ___________
San Antonio ______________________________

Fur niture stores:
Dallas ____________________________________ ._ ...
Fort Worth.... ________ ..... ____ ...____ ...
Houston ______ .. __ .. _.. ____ .. __ . _____________
Port Arthur __________________ ________ ..
San Antonio_____ . __ . ________ .________
Shreveport..
____ . __ ..
Texarkana
_____ . __ .. ____
J ewelry stores:
Dallas ____ . ______ ... __ .. _____ ... _______ . __ . ____
Houston _. _____________________ .______ .
Men's clothing stores:

W~~~~~~n~pp~;~I ·~t~~~~-: ·· -

3
3
5
4

-1
6

6
3
9
4
6
3
3

8
3
16
10
8
-6
4

-33
-14
-15
-13
-19
-26

-4

1
7

5
3

-1
-1

-14
-12

9
6

•

-12

-1
7

-7
-8

4
Dallas ____ .. _______________ ----------.... --... 3
Houston ______________ ____ ____ . ____ ... ____ ... 5

-11

-1

19
-9

21
9

122
31

15
13
10

-1

. JndicatE s change or less than one-half of one percent.

spread repayments over a period of
several months. These developments, as
well as many other readjustments in the economy mentioned as being prominent during 1948, have
continued thus far in 1949 and are indicative of the forces which may influence economic activity
and the operations of individual concerns to a greater or lesser degree in the coming months. The
problems growing out of these readjustments are not new and are common in some degree to all lines
of business and industry and to each individual enterprise. It is important, therefore, that each business
analyze the forces of readjustment and their implication and formulate sound business policies and
practices for its operation within the framework of the general economic conditions, so that it can
contribute to the strength of the economic system and to the stability of economic activity.

MONTHLY BUSINESS REVIEW

Review of Business. Ind ustrial. Agricultural. and Financial Conditions
DISTRICT SUMMARY
The outlook for agricultural and livestock production in the
Eleventh Federal Reserve District has improved materially during the past six weeks as a result of the generally adequate
moisture supplies and the favorable growing and planting conditions in most areas. Range vegetation, which has made rapid
growth, is providing ample grazing; as a result, livestock are
making substantial gains in weight. The wheat crop is reported
to be in good to excellent condition, with the estimate of 99,190,000 bushels for Texas indicating the second largest production of record for the State. Planting of spring crops is progressing satisfactorily, and early crops are making generally
good, growth. According 'to the March 1 intentions of farmers
to plant, the acreage seeded to spring crops in Texas this year
may be substantially smaller than in 1948.
Department store sales at reporting stores in the District increased by more than the usual seasonal amount from February
to March, if allowance is made for the effect on sales of the
late date of Easter this year. The dollar value of sales during
Marcil exceeded that in February by 26 percent but was 8 percent smaller than in March last year. During the first quarter,
sales were down 6 percent from those in the same period last
year. Sales of furniture stores also showed a substantial seasonal
increase from February to March but were 12 percent smaller
than in March last year. The year-to-year decrease in March,
while slightly larger than a month earlier, was lower than in
each of the four months preceding February.
The downward readjustment in the production of crude petroleum in die District continued during March and April,
and the Texas Railroad Commission has reduced production
allowables for the State in May by 54,000 barrels daily. The
moderate reduction in May allowables apparently reflects the
better balance between the demand for and the supply of crude
petroleum in the District. Daily average production declined
about 175,000 barrels from February to March, and a similar
drop is indicated for April. The April production rate is running
about 475,000 barrels below that in April 1948.
Due partly to seasonal factors, the value of construction
contracts awarded in the District during March rose substantially above the relatively low levels prevailing in January and
February, the total for the month being 38 percent greater
than in February and 12 percent larger than in March last year.
While residential awards were higher than in February, they
continued smaller than a year ago, with the total for the first
quarter being about one-third lower than in the first quarter of
1948.
The deposits of weekly reporting member banks in leading
cities of the District increased about $30,000,000 between
March 9 and April 13 and on the latter date were modera tel y
larger than at mid-January. Loans and investments continued
downward during the five-week period, and the total On April
13 represented a net decline of $118,000,000 during the preceding three months, with the decrease about equally divided
between total loans and total investments.
BUSINESS
The seasonal increase of 26 percent in the dollar volume of
sales at department stores in the Eleventh Federal Reserve District in March was greater than the usual seasonal rise for
that month, if allowance is made for the late date of Easter
this year. In consequence, the seasonally adjusted index of sales,

which moved upward for the first time this year, was 376
percent of the 1935-39 average, compared with 358 percent in
February and 384 percent in March 1948. Reflecting, in part,
the effects of a three-weeks-Iater Easter in 1949 than a year
earlier, however, March sales were 8 percent below those of the
comparable month in 1948. The substantial year-to-year increase of 18 percent in sales which occurred in March 1948
was due to an unusually favorable set of circumstances, such
as good weather, availability of merchandise, early spring shopping, and an early Easter; consequently, it is not surprising
that sales during March this year fell below those of the same
month a year ago. On the other hand, sales during March 1949
exceeded those of the 1947 month, despite an II-day earlier
Easter in 1947. A comparison of t otal sales for the four weeks
before Easter 1949 with the comparable weeks before the previous Easter indicates only a 3 percent decline from the 1948
dollar volume, a decrease due at least in part to lower prices
and the seasonal influence of the shifting date of Easter. When
the data are available, a comparison of total sales in March and
April 1949 with those in the same months of 1948 will provide
a much better indication of the trend of current I>usiness than
a comparison of sales in either month considered separately.
WHor,ESAT.E AKD RETAil. TRADE STATISTICS

Ae:ail trado :
Department. stores:

Tot.'ll 11th Dial..

~l~~~~~~i....

Fort Worth ..

Houston ..... .
S:m Antonio .. .
Shreveport, t..a .... . .
Other cit.ic5 .. . .. . •.
Furniture stores:
Tot.a.11lth Dist .... .
Dallas ........ . . .
Jlouston ........ .
Port Arthur.
San Antonio.
Wholesale trade:·
Automotive supplies
Drugs and sundries.
Dry goods ..... .. .
Grocery (CulMine
wholesalers not
sponsoring groupJ)
Hardware ......... .
Tobacco products ..•

48
4

7
4
7
5
3
18
45

4
6

4
3

-8

- 4
-7

26
28
21
19
32
31
38
26

-12
2
-13
-27
-3 1

21
22
31
6
18

-8

16
9

-2
-8
- 10
- II

-5

8
- 10
34

- 11

-7
-6

15
4
5

-5

-11

-2
-14

7
10

- 5••

-7

- 6
5

- 6

- 5
-15

18
13

-6
-3
- 7
-6
-5
-0

- 11

-4

5
4
8

-8

-3

Wiring supplies, construction materials
- 12
- 13
distributors ..
·Prc1imiruuy daL'l. COml)lied by United States Bureau of Census.
tStocks at end o£ month.
0Indicates change of leJ!K tha.n one-ha lf of oue percent.

I)/DEXES OF DEPARTMENT STORE SALES AND STOCKS

Daily average sales-(1936-39- 100)
Mar.

Adjusted
Jail ,
Feb.

1949
376
356
463

1949
358
323
386

Unadjwted Mar.
1949

11th Distrid .
Dallas .

Houston ... . .

3.\3

Feb.

Jan,

1949
315

1949
306
277
303

335

311

399

340

Mar.
1948
384
363
449r

1949

3i8

Mar.
1948
384

338
466

363r
408r

Adjusted
Feb.
Jan.

Mar.

StO<lks--(l935-39-IOO)

----Unadju..sted}'eb.
Jan.
Mar.
1949
392

1949

1949
346

362r
· Unndjusted for 8e3.!IOnal variaticm.

11th District .

Mar.
1948
404r

Mar,
1949
413

1949
406

11}49

384

1948

42(lr

r-Reviacd.

Reports indicate that conSumers generally responded favorably to Easter and early spring promotions and price-reduction sales. Special price reductions on refrigerators and other
appliances, radios and combiqations, nylon hosiery, and carpets
and other floor coverings stimulated sales in those lines, with
the result that the February to March gains were greater than

MONTHLY BUSINESS REVIEW
usual at this season. Moreover, the year-to-year decreases in
sales of those items during March were smaller than in other
recent months. Due at least in part to the lateness of Easter this
year, the February to March increase in sales of women's and
misses' ready-to-wear apparel and accessories was much smaller
than in 1948, but the decrease from a year ago was much
larger in March than in February. The sales of men's and boys'
wear showed a moderate increase in March as compared with
February and were about one-fifth smaller than in March
last year.
Reflecting the receipt of additional merchandise for the
Easter season, the dollar value of inventories at reporting department stores continued upward in March, rising 7 percent from the level of the previous month. The earlier
Easter last year, however, necessitated larger stocks on hand
during March 1948, and inventories in March 1949 were
4 percent bclow those of the 1948 month. With virtually
all forward commitments for Easter merchandise having been
made prior to or early in March, the dollar volume of outstanding orders declined 26 percent from that in February.
The decline of 35 percent in outstanding orders from the
volume of the previous March also reflects the different Easter
dates, as well as the all-time record level of sales during the
spring of last year.
TI,e ratio of collections during March to accounts receivable outstanding at the first of the month showed that the
gradual downward trend on both regular accounts and instalments had been checked, at least temporarily. The rate of collections on regular accounts rose to 54 percent in March from
50 percent in the previous month and compares with 53 percent
a year ago. The ratio of collections to instalment accounts increased for the third consecutive month and in March was 21
percent, or 1 percentage point above a month ago but still 4
points under the 1948 high reached in March. The increase
in the rate of collections probably reflects in part the effects
of tbe 1948 tax refunds, the average of which was higher this
year than last, and the lower volume of durable goods sales.
Credit purchases, however, continue to comprise an increasing
share of total purchases. In March the ratio of credit sales to
total sales was unchanged from tbat of ihe previous month at
66 percent but compared with a ratio of 64 percent in the
corresponding month of the previous year.
A seasonal upswing was reported in March sales at furniture
stores in the Eleventh Federal Reserve District, the dollar volume being 21 percent above that of the previous month. This
sales increase, however, was insufficient to equal last year's
sales, and the March volume was 12 percent below that of
March 1948. The dollar volume of furniture sales has shown
decreases from the high levels of a year ago in each of the
past six months. This slowing down in furniture buying apparently reflects the steadily diminishing backlog of demand,
stronger resistance to high prices, the shift in buying to the
more moderately priced furniture which is now available in
larger volume, and the declining rate of home building, with
the consequent smaller demand for furnishings.
In line with the year-to-year declines in total sales of furniture, credit sales in each of the past six months have shown
decreases from those a year earlier, but the percentage declines
have been smaller than those in total sales. In consequence,
the ratio of credit sales to total sales has continued the upward
trend in evidence throughout the postwar period. This trend
has reflected the marked expansion in furniture buying, the
increasing pressures upon current inconlcs, and the dinlinisrung
backlog of liquid reserves of an increasing number of families.

The ratio of credit sales to total sales in March this year was
88 percent, as compared with 86 percent in March 1948 and
75 percent in March 1946.
Collections on furniture accounts increased slightly during
the month for the first month-to-month rise this year and
were 6 percent above those of March 1948. Accounts receivable,
reflecting in part the monthly increase in collections, continued
to edge downward from the level of the previous month,
despite the increase in credit sales from the February volume.
Tbe year-to-year increase of 17 percent in receivables was the
smallest gain reported since the middle of 1946, suggesting
a leveling trend in the growth of accounts receivable.
The value of inventories at District furniture stores turned
upward in March for tbe first month-to-month increase since
last November. The 4 percent increase in the value of furniture
stocks during March as compared with February reflects the
anticipated seasonal increase in spring sales, as well as the
addition of several types of furniture designed primarily for
spring and summer use. Despite this seasonal increase in stocks,
the total at the end of March was 2 percent below that in
March 1948.
AGRICULTURE
Moisture supplies throughout most of the Eleventh Federal
Reserve District arc favorable for the germination and growth
of early spring crops, although additional moisture would be
beneficial in southern counties of the Rolling Plains of Texas
and New Mexico. Weather conditions in late March and April
generally were satisfactory and field work in most areas progressed about on schedule, although planting was delayed somewhat Iby wet fields in the eastern and Coastal Bend counties
of Texas and by unseasonally cool weather in tbe western part
of the State. Spring crops generall yare making good growth,
except where retarded by cool nights. Damage from freezing
temperatures in the northwestern sections of the District during the first part of April was slight and confined to early
gardens. Livestock have improved greatly during the past month
as ranges and pastures responded rapidly to the wanner weather
and the improved moisture supply.
On April 1, the United States Department of Agriculture
forecast a 1949 wheat crop in Texas of 99,190,000 bushels. This
estiDlate, which indicates the second largest production of
record for the State, compares with 56,290,000 bushels produced last year and the 10-year (1938-47) average of 53,944,000 bushels. The seeded acreage, estiDlated last December
at 7,630,000 acres, is the largest of record, and it appears that
acreage abandonment may be relatively small. Wheat has
made rapid growth during the past month and is reported to
be in excellent condition, except for slight insect damage in
the northern Blackland counties of the State. Although additional rainfall in some counties of the Southern High Plains
and Low Rolling Plains would be helpful in insuring high
yields, moisture supplies generally are reported to be adequate
throughout the wheat-producing areas of tbe District.
Oats are heading out in southcentral Texas, witb leaf rust
damage rather heavy in some counties. There has also been
ligbt damage to the crop from ruSt and insects in northcentral
areas. Corn planting is virtually completed throughout Texas
and Louisiana, but cool nights have retarded the growth of
young corn in northern and eastern counties. Grain sorghums
are up to a good stand in southern and Coastal Bend counties
of Texas, with seeding well advanced in western areas. Maturity
of the Texas An crop was retarded in some areas by early
April rains but a good crop is in prospect, with excellent yields

MONTHLY BUSINESS REVIEW

expected in the southern half of the flax area. Cotton was up
to a good stand in the southern and south central counties of
Texas at mid-April. Much of the cotton land in northern counties was ready for planting at that time and some acreage
was seeded, but many farmers were awaiting warmer weather
before planting. According to press reports, a record acreage of
cotton has been planted in the Lower Rio Grande Valley, where
production prospects are good . Progress in seeding the Texas rice
crop has been relatively slow because of delay occasioned by wet
fields. Pecan trees have leafed out well in all areas and have
been blooming in the early producing sections.
Conditions in the commercial vegetable areas during the past
month were favorable for field work and growth of crops,
except in the upper coastal counties of Texas where delayed
by excessive rains. Harvest of the Rio Grande Valley early
potato crop is well advanced, with yields and quality reported
to be good. Planting of the Panhandle summer potato crop has
been virtually completed. Melon crops in early areas are growing
satisfactorily, although there has been some insect damage, and
planting of melons in the later areas has been active under
favorable moisture conditions. The tomato crop in the Lower
Valley, although much later than usual, is making good growth,
while transplanting of the east Texas tomato crop has been
active. Snap beans, cucumbers, and north Texas onions have
made good progress. Onion harvest is under way in the Raymondville and Laredo districts, and the crop in the Coastal
Bend continues to show improvement.
CASH RECEIPTS FROM FARM MARKETINGS
(In thousands or dollars)
Cumulative receipt..
February January 1 to February 28,

February 1949

State
Ariz!>~a .. , ..

T.JOul81ana ...•
New Mexico.
Oklahoma ...

Texas .......

Crope

Liyestock

$ 8,33 1
15,883
5,519

$ 5,410
4.840
3,914
17,278
41,102

9,707

51,493

Total
$ 13,741
20,723
9.433
26.9&1
92,685

1948
Total
I 11.1106
19.6110
8,635
37~09

113.0lI0

Total. .. . . $ 90,933
$ 72,634
$163,507
1190,270
SOURCE: United States Department of Agriculture.

1949
$ 37,305
61,446
23.881
65,124
209,553
1397,309

1948
I 32,677
46,976
20,002
89,847
280.084

--$469,586

CASH RECEIPTS FROM FARM MARKETINGS
(In thouSllods of dollars)
January 1949r

State

t:::~~:

. . . :::::::::.

New Mexico ....... .
Oklahoma .........•
Texas ... . . . . . ..... .

Oro",
$ 17.530
33 ,056
10.774
17.380
60,375

Livestock
$ 6,034
7.667
3,674
20.759
47,493

January

Total
1 23,564
40,723
14,448
38,139
116,868

TotAL ....... .•..
1148.115
$ 85,627
$233,742
SOURCE: United Statoo Department of Agriculture.
r-Revised.

1948
Total
$ 21.071
27.316
11.367
52,538
167,024
1279.316

New range and pasture feed is plentiful to abundant over
the eastern, central, and southern parts of the District and is
showing marked improvement in western areas as weather becomes warmer. Both surface and subsoil moisture are favorable
to good early summer grass. Supplemental feeding of livestock
was discontinued during the early part of April as ranges and
pastures began to supply adequate grazing. Estimates of range
feed conditions in Texas on April 1 were about 9 percent above
a month earlier and slightly above average for this season
of the year.
Cattle and calves gained flesh rapidly during March and
April, on the improving supply of new green feed and are now
carrying fair to good flesh. The calf crop in Texas has made
rapid gains, due to the fact that the milk flow of cows became
heavy as grazing conditions improved. Stocker cows and yearlings have been in very strong demand as ranchmen have
attempted to build up their herds in anticipation of favorable

feed supplies this year. It is expected that a larger-than-normal
percentage of heifers and heifer calves will be retained for
herd replacements. Movement of three and four year old steers
to Flint Hill and Osage pastures of Kansas and Oklahoma during late April and early May is expected to be substantially
smaller than last year.
Sheep and lambs are improving rapidly on the generally
abundant supply of early spring grass available in the main
sheep country. Losses of lambs since the storms in January and
early February arc reported to be unusually low, with the
percentage lamb crop in Texas expected to be near average or
above. Ewes have been giving an abundant supply of milk,
which enabled lambs to develop rapidly. Because of the generally
plentiful supply of green feed, stocker ewes and ewe lambs are
very much in demand. The few yearling lambs that have been
marketed during the last twO months generally have carried
better-than-average flesh for that season of the year.
I.TVEBTOCK RECEIPTS-(Numoo.)
- - 'Fort Worth market - _ - - ; & 0 Antonio marketMar.
Mar.
Feb.
Mar.
:Mar.
Feb.
1040
1948
1040
1949
1948
1049
C!.os
34,364
33.s65
26,311
23,062
21,190
Cattl•......... ....... . . . 39,160
9,509
9,366
13,607
14.99 7
8..187
Calves .. ............. . . . . 12,615
56.239
56,674
8.292
9,737
6,870
Hop ..... . . ... .•...•.... 68,924
36,925
75,524
25,772
17,4110
39,596
19.003
Sheep . .. . . ... • .•••.•...

TOP LIVESTOCK PRICES
(Dollars per hundredweight)
- - Fort Worth market - - - - ; 8 6 0 Ant.onin marketMarch
March February March
March February
1949
1948
1940
1040
1948
1949
Cia"
128.75
$23.110
124.60
$29 .00
122.50
S1auliliter steers ......... . $25.00

StDclt.er steers . .......... .

Slaughter cows ..•.• ... . ..
S1augbtar heifers and
yearlings .....•........
Slaughter calves ...... ... .
Stocker calves ........... .
Slaughter lambs ......... .

Hop ............... . . . . .

~.50

27.00

26.50

20.00

23.00

18.110

·2i:.iil

·23:00

·i9:25

27.00
26.00
28.50
32.00
21.25

28.75
28.00
26.50
22.00
23.25

24.60
25 .60
25.00
24.00
20.75

25.50
28 .00
27.00
27.50
21.25

29 .25
29 .00
26 .50

22.00
24.75
2<1.00

23 .50
26.50

23.50

21.00

Combined receipts of livestock at the Fort Worth and San
Antonio markets during March were 23 percent above those
of February but 15 percent below receipts of March 1948. The
increase over February resulted from larger marketings of each
class of livestock, with receipts of calves up about 46 percent
while other groups were larger by 20 to 22 percent. The fact
that total receipts were lower in March than during the same
month last year is due entirely to a decline of 53 percent in
marketings of sheep and lambs, which was only partially offset
by substantial increases in receipts of cattle and hogs.
Prices received by Texas farmers averaged slightly higher
at mid-March than a month earlier but still were fractionally
below the level of March 15, 1948, and 11 percent below the
high point reached in June and July of last year. During the
month ended March 15, price changes of individual commodities varied considerably, with most livestock and grains showing increases, while dairy products, eggs, truck crops, and
citrus reflected declines. Reports from commodity markets indicate that from March 15 to mid-April, prices of cotton,
lambs, and most classes of cattle made slight to moderate
advances. Grain prices fluctuated within narrow margins, while
hog prices declined sharply.
Prospective Plantings
The Nation's farmers will plant one of the smallest acreages
of spring-planted crops, other than cotton, in more than 10
years, according to their intentions to plant as reported by
the United States Department of Agriculture. The decline
from 1948, however, is offset partially by a much larger acreage

MONTHLY BUSINESS REVIEW
of winter wheat sown last fall. After allowing for duplications
and for certain crops nOt yet surveyed, the Department estimates that the total 1949 acreage of 52 principal crops may
be approximately 360,637,000 acres. This would be about
1,600,000 acres less than last year's planted acreage and well
below the wartime peak reached in 1944. The total prospective
acreage exceeds by about 1 percent the aggregate of allotments or goals suggested by the Department of Agriculture.
The greatest decline in spring plantings will be in the feed
grains, with smaller declines in the oil seeds-soybeans, flaxseed,
and peanuts-and most other row crops. Increases are indicated for spring wheat, dry peas, and tobacco. In the five
states lying wholly or partly in the Eleventh Federal Reserve
District smaller acreages of corn, oats, barley, sorghums, Irish
potatoes, sweet potatoes, cowpeas, peanuts, rice, and hay are
expected. As in the Nation, the increased acreage of winter
wheat in the five states constitutes a partial offset to the
smaller acreages intended for other crops. Because of legal
restrictions, the Department of Agriculture does not collect
information on farmers' intentions to plant cotton.
PLANTED ACRES-TEXAS AND FIVE STATES

(Tn thousands of fLCmJ)
Texas
Crop

Corn .
Winter

wheat :: ..
Oats. __ , ..... . . . .

Barley,
Flax ... .... ...... .. .....
Rice ................ _,_.
All sorghums ..• , ..•....•.
Irish potatoes ...... . . ....

Indicated
1949
2.544
7.630
1,360
130
277
507
6,079
38
41
5
158
678
1,385

Fin States1
Average

1948
2,765
5,752
1,600
188
227
512
7,324
44
S1
5
185
798
1,505

lW8-47
4.320
5.134
1,838
335
40'
364
7,184
52
62
21
432
591
1,481

Indicated
1949
4,925
15,7411
2,570
441t

1948
5.238
14,7101
2,965
553'
26{1t

Average

1WIH7
7,625
11.086'
3,540
920'

320'
88'
.l,14{}1
1,104'
0251
8,028
9,477
9,704
81
91
131
Sweet potatoell .... . ..... .
120'
136 e
17S'
Soybeans alone l . . . . . . . • . .
140'
12S'
155'
Cowpea, al:one' .. , .... . • . .
2750
303'
640'
Peanuts alone 7 •••••••••.•
g24'
1,119'
804'
All hay•... . ... ......... .
3,511
3,717
3,569
lArirona, Lousiana, New Mexico, Oklahoma, and Texas, 2Arizona, New Mexioo, Oklahoma, and
Te:ta.1!l. IShort-time average. 4Texas, Arilona and Oklahoma.. 5Loui8ianllo and Tex88. 'TeX88;
Louisiana, and Oklahoma. 'Grown alone (or ah purposes. 8Louisian3, New Mexico, Oklahoma;
and TIUM. ·Aereage harve8ted.
SOURCE: United. States Department of Agriculture.

The report of farmers' intentions to plant indicates that in
Texas the acreage of all spring-sown crops, excluding cotton,
may be 5 percent 'below the acreage planted in 1948 and 4
percent below the 10-year average. Plantings of wheat and flax
in the State last fall were the highest of record, so the over-all
crop acreage, excluding cotton, will be about 1,000,000 acres
below both the 1948 acreage and the 10-year (1938-47) average. The prospective acreage of grain sorghums is 17 percent
below last year, due partly to the expanded wheat acreage. A
reduction of 31 percent is indicated for barley and 15 percent
each for oats, cowpeas, and peanuts. The smaller acreages of
oats and barley resulted partly from the severe and extended
drought of last fall, while peanut acreage reduction is due
to the acreage allotment program for 1949. The intended corn
acreage, which represents a decrease of 8 percent from last
year's planted acreage, is the lowest since 1879. The reduction
in hay acreage would result chiefly from the smaller acreage of
peanuts. In Louisiana, acreage reductions are indicated for all
major crops (excluding cotton). Oklahoma farmers are expecting to increase plantings of soybeans by 19 percent and corn
acreage by a small amount, while the intended acreages of all
other spring-planted crops (excluding cotton) are smaller than
in 1948,
FINANCE
Loans and discounts of the weekly reporting member banks
in leading cities in the Eleventh District continued to decline
between March 9 and April 13 and on the latter date amounted

to about $1,071,000,000. The decline in loans, which has been
unbroken since the first of the year, was a result in part of
the normal seasonaL trend but, in addition, shows the effects
of the slowing down in business activity that has been characteristic in this District and throughout the Nation. This has
been especially apparent in connection with commercial, industrial, and agricultural loans, which declined by over $31,000,000 during the five-week period ended April 13 and by
almost $47,000,000 since the first of the year. More cautious
inventory policies On the part of merchandisers and greater
selectivity on the part of bankers have combined with other
factors to bring about the steady decline in loans that has
occurred.
The slowing down in real-estate activity is reflected in the
slight decline in real-estate loans at selected member banks in
the District, This category of loans, which increased steadily
throughout 1948, has shown a decline of about $1,000,000 this
year to date, indicating that new loan volume and repayments
have been in approximate balance.
Loans at country banks in the District have increased slightly
during the last three months, but the increase has not been
large enough to offset the substantial decline that has occurred
at banks in the larger cities. Consequently, the total loans of
all member banks in this District are down moderately from
year-end levels. It is estimated that loans and discounts of all
member banks in this District amounted to $1,804,000,000
on the last reporting date in March, in contrast with $1,833,000,000 On the last reporting date in December 1948.
As a result of a decrease in holdings of certificates of indebtedness amounting to approximately $21,000,000, offset in
part by a slight increase in holdings of Government bonds, total
investments of the selected member banks in the District
declined rby about $18,000,000 during the five-week period.
Holdings of Treasury bills and other bonds, stocks, and securities showed no significant changes.
CONDITION STATISTICS OF WEEKLY REPORTING MEMBER BANKS IN
JJEADING CITIES-Eleventh Federal Reserve District
(In thousands of dollars)

Item

Apri11S,
1949
Total loans and iD\,'cstments ... . .............. .. ... $2,225,053
Total loans-Nett . ..... _. _. _.. .... "........... 1,000,820
Totalloans-GroB8 ................ ... ........... 1,070,957

April 14,
1948
$2,l73,1g5........
1,010,507-

March Di
1949
$2.274,074
l,OQ2,511
1,101,836

~~~e~l~~~u:~~aJ!le~aFn~~~~[ti~~~: : : : 73~:As~
69~fo~
76~~f
Other loans for pUN!hasing or carrying securities..
52,341
55,g21
56,914
Real-estate loans........ ....................
87,152
80,748
88,247
Loans to banks.. .. .. .. . . .. .. .. .. ... . . . . . . . . . .
204
376
591
All other loan.!!.. . ..
.....................
189,048
169,715
183,588
Total investments . ..
I,Ui4,096
1,162,688
1,172,238
U. S. Treasury bills.............. . . ..... ......
28,051
11,311
28,450
U. S. Treasury certificates of indebtednesa.......
244,525
163,011
265,428
U. S. Treasury notes..... .....................
39,838
93,007
41,529
U. S. Government honda (inc. gtd. obligationa)...
121,957
778,822
716,306
Other securities................
........ . ...
119,719
116,537
120,525
Reserves with Federal Reserve Dank.
...... . .••..
529,037
467,488
544,124
Balances with domestic banks.......... . ...........
312,870
300,408
251,552
Demand deposit.&-adjustecl.· .............. . . . ....... 1,Q39,029
1,841.953
1,935.686
Time deposLts except Govt.. . . .. ... .. . . . . . . .. .. .. . .
418,382
S94,073r
406,602
United States Government deposits.. ... . . . . . . .. .. . .
52,320
44,397r
51,062
Tnterbank demand deposits. . . . . . .. .. .. . . .. .. . . .. . .
516,471
531,185
526,563
Borrowings from Federal Reserve Dank..............
0
0
1,000
-Includes all demand deposits other than interbank and United States GovernlUent. less cash
items repr>rted as on hand or in process of collectir>n.
r Revised. tArter deductions for reserves and unallocated charge-ofi's.
-Prior to June 30 1M8, the individual e1assea ofloaIl.!l were reported net; however, the amount
of rescrvps dedueted subsequent to June 30,1948, W'8! 80 small as to have DO significant effoot upon
the oomparability of the data.
Following several weeks of decline, demand deposits at
selected member banks in the District increased during the first
two weeks of April and totaled $2,702,000,000 on April 13,
or about $18,000,000 more than the total reported on March
9, The increase in deposits during the early part of April at
these selected member banks partially offset the decline that
had preceded the income tax date. Total demand deposits of

MONTHLY BUSINESS REVIEW

these banks on April 13 , however, were approximately $150,000,000 less than the amount reported at the end of 1948.
Changes that occurred in total deposits at these banks in leading
cities were the result of increases in deposits of individuals, partnerships, and corporations and of states and political subdivisions, offset in part by the decline in interbank deposits.
Gross demand deposits of all member banks in the District
declined moderately during March and averaged during that
month about $287,000,000 less than the daily average during
December 1948. The daily average of gross demand deposits
of the District's member banks, however, was about $120,000,000 larger during March of this year than during the same
month a year ago. For the past three months, time deposits have
shown virtually no change in this District, averaging about
$607,000,000 since the first of the year.

month ended April 15 from $659,357,000 to $688,998,000.
Holdings of Government securities declined moderately and
comprised the principal change in earning assets of the bank.
Reflecting the declining trend of bank deposits, member bank
reserve accounts with the Federal Reserve Bank of Dallas were
approximately $31,000,000 lower on April 15 than one month
earlier.
CONDITION OF THB FEDERAL RESERVE BAN K OF DALLAS
(Tn thouaandl! of doUars)
April 15,
1949
Hem
Total gold certificate reserves .... .
1688 ,998
2,280
Discounts ror member OOnks ..... .
5,323
FOrelgD loans on gold . ......... ..
915,534
U. S. Government securities ...... .
923, 137
Total earning assets ............. .
914,441
Member bank reserve deposita ........... .
593.368
Federal Reserve notel! in actual circulation ..

AprilUi,
1948
$525,097
549
5,202
930,315
936,066

Mnrch 16,

1949
1659,357
4,100
5,320
'24,740
'34.160
9'5.807
597,042

i97,919

589,143

GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
Eleventh Federal Reserve District
SAVINGS DEPOSITS

(A veragea of daily figures. In thousands of dollars)
Combined total

Gross

Date
demand
March 1047 ...
$4 ,6.14,452
March 1948 ......... . 5,019,'6'
November 1948 .. . . "
5,407,874
Dooember 1948 •..... , 5,427,633
Janua.ry 1949 ......... 5,430,929
February 1049 ....... . 5, 193,624
March 1049 .......... 5, 189,728

Country bow

Reserve city bankl

Gross

Time

demand
'lime
$2,22.\,4 18 $326,&.l3
2,357,864
357,605
2,584,489
379,005
2,613,198
382,118
2,612,02.\
300,682
2,474,757- 300,045
2,450,349
388,298

$517,295
569,800
594,12.\
595,339
607,167
607,063
607 ,104

Gro..
demand

BANK DEBITS. END·OF-MONTH DEPOSITS, AND ANNUAL RATE OF TURNOVER
OF DEPOSITS

(Amounta in t.housands of dollars)

City
1949
1948
Arirona: Tu C80n .. . ... $ 6.\,4 17 - 1

1949
16

Mar.31,1949
$ 85,070

Annual rate or turnover
Mar,
1949
9. 1

Mar.

1948
9. 1

Feb.
1949
7.7

LonWan.a :

:Monroe •.. .•.••..•.

Shreveport .. .......
New Mexico: Roswell .
Texaa:

36,040
140,322
14,978

Abilene ......

34,711
00,600
Amarillo
Austin ............ .
160,207
Beaumont ..... ....
911,116
Corpos Christi. . . . .
77,972
Cormca.na .•....••..
9,961
Dallaa.,., ... , .... , 1,059,239
EI Paso .... , ...... , 135,374
Fort Worth ....... .
310,101
Galveston . ... .•.•.
75,619
HOU8ton .........• . 1,147.191
lAredo ............
17.6M
Lubbock ...........
64,433
Port Arthur ....... .
34,219
San Angelo ....... , .
28,760
San Antonio ........
257,526
Texa.rkaro·· .......
14,293
44,059
~::: :'.'.::::::::: 52,295
Wichita Falla ..... . .
69,660

Total-24 cities .... . . 14,029,747

5
'0
24
-2
-1

-2

8
6
6
3
9
3
-4
-14
-6
6
3
8
2
16

15
17
27

42,143
163, 100
18,266

10.2
10.2
9.7

9.8
10.0
9.&

8.8
8.8
7.6

16
36
6
16
11
15
13
15
20
12
10
18
I
19
20
16
22
14
18

37,900
82,566
106,101
98,59'
78,005
20,158
736,523
117,699
287,375
911,125
900,761
21,990
65,047
39,725
37,238
315,772
23,010
49,005
66,026
110,515

10.3
13.1
18. 4
11 .8
11.8
5.9
17. 2
13.6
12.7
9. 2
15. 1
9. 5
lU
10. 2
8.9
9.7
7,4
10.3
9,5
8.8

9.7
12.0
15.4
12.6
13.1
6.1
17.2
13 .2
13 .3
9.6
16 .4
9.5
11.8
11.9
9.8
9,4
7.3
9.7
9.8
8.0

8 ,4
10 .9
13 . 3
10.9
10, 1
5.2
14 .9
12 ,0
11.0
7.8
13.3
8.5
9,5
10 ,1
7,3
8,2
6.4
8.5
8,2
7. 4

$3,573,592

13.3

13,3

11,5

March 31, 1949

'lim.

$2,42U,00' $100,602
2,661,600 212,195
2,823,385 214 ,220
2,814,435 213,221
2,818,004 216,<85
2,718,867 217,018
2,1189,379 218,806

Debits of banks in 24 cities of the District were 7 percent
larger during March 1949 than during the comparable month
in 1948 and 15 percent more than the total reported for February of this year, Largest increases during March in bank
debits were reported by banks in Austin, Wichita Falls, and
Amarillo, while largest decreases were reported from Port Arthur and San Angelo. The annual rate of turnover of deposits
increased from 11.5 times during February to 13.3 times during
March. The annual rate of tUrnover during March of this year
was the same as the rate reported during March of 1948.

- - - Debits+ - - Pc~. chanv over End~f-month
Mar.
1 ar.
eh.
deposita-

Eleventh Federal Reserve Dilltrict

+Debits LIl deposit accoWlts except interbank acoounts.
'Demand and time deposits at the end of the month include certified and officers' ched" out-.
atandintt but exclude deposits to the credit of banks.
'-This figure includes only one bank in Texarkan.'l. Texas. Tolal debits for all banks in Tu.
arkana, Tens-Arkansas, including two banks located in the Eighth District,amountedl.o $26,486.

Condition statistics of the Federal Reserve Bank of Dallas
show an increase in total gold certificate reserves during the

37,364

Amount of
savinp
depomtll
I 25,112,597

3
8
2
4
4
8
2
2
5
3
3
55

12,081
141,791
32,349
43,743
23,274
101,998
1,769
6.720
39,66.\
9,602
7,393
63.607

6,308.445
78.292.905
22,859.158
36,147,456
21.312.966
74,016,151
3.445.657
4,1188,864
46,175,61 8
10.164,863
4.556.744
54,449.720

102

620,346

$385,531,144

Kumber or Numoor or
City
wuisiana: Shreveport.
Texa8:
Iknumont ......•..
Dallas ...... . ..........
EIPaao ................
Fort Worth ...•.. • • ••••
Galveston .. . ..... . ... . .
Houst.on . ..

...........

Lubbock ....
Port Arthur ........... .
Sun Antonio .....
Wa.co . .. ... ... ..
Wichita Falls .....
All otber ...... ..

Total .............

reporting
bonks

ISBvings

tlc)XllSitors

Peroont.a~e change in
I18.vings epDflita from

March 31,
1948

2.6

Feb,28.
19'9
- 0 ,6

- 0. 2
- 0 .9
-1.7
0.2
- 0.8
2.7
96 .0
- 5.2

-5.1

6.3
0.1
0.6

0.2

0 .2
0 ,02
1.3
0 .2
0.3
0.04
10.8
0.8
0.7
0.6
0.9
0.01

0.00

A review of figures of currency circulation shows that the
amount of money in circulation in the United States and the
nOte circulation of the Federal Reserve Bank of Dallas continued
to decline through March, although the total decline during
the first three months of this year was less than during the same
period in 1948 . During the first quarter of 1949, the decline in
actual note circulation of this bank was about $28,300,000, as
compared with a decline of about $34,100,000 during the same
period in 1948. In the United States, money in circulation declined about $922,000, 000 during the first quarter of this year,
or approximately $2 69,000,000 less than during the first quarter in 1948. Latest figures available show that on April 15
Federal Reserve notes of this bank in actual circulation
amounted to $593,368,000, while money in circulation in the
United States on April 13 totaled $27,507,000,000.
The excess of sales of sa vings bonds over redemptions in this
District during the first three months of this year amounted
to about $6,600,000, in contrast with $2,700,000 during the
first quarter of 1948 , A better sales record during February
and a much smaller net vol ume of redemptions during March
than during the two comparable months last year more than
offset the less favorable record in January this year as compared
with the same month in 1948. During March, redemptions of
savings bonds in this Distric t amounted to $19,622,000 and
were about $548,000 more than sales. In the United States, however, sales of savings bonds during March exceeded redemptions
by almost $150,000,000,
During the first quarter of this year, Treasury receipts from
income taxes wi thheld by employers were about $543,000,000
less than during the same period last year, while other income
tax receipts were $470,000,000 less tban during the comparable

MONTHLY BUSINESS REVIEW
period in 1948. Treasury receipts from otber tban income tax
sources also were less, wbile expenditures during the first quarter exceeded those of the same period last year. Larger expenditures hy tbe military establishments, tbe Economic Cooperation
Administration, and the Commodity Credit Corporation contributed importantly to tbe larger volume of total expenditures
reported during tbe first quarter of this year.

NEW MEMBER BANK

The First State Blft/k, H<fWkins, Texas, located in the
territory served by the H ead Office of the Federal Reserve
Ba·nk. of Dallas, was admitted to membership in the Federal Reserve System on April 4, 1949. This bank. has
capital f'tnds of $73,900, including capital of $50,000,
surplus of $15,000, and undivided profits of $8,900. The
officers are: R. B. Smith, Chairman of the Board; C. C.
Sims, Presidmt; J. E. Green, Vice President; J. T. Hallmark., Cashier.

INDUSTRY
Nonfarm employment in Texas is reported to bave followed
tbe usual seasonal pattern with a moderate increase to 2,309,000
persons by mid-April, according to estimates of the Texas Employment Commission. The April level of nonfarm employment represents 26,000 or 1 percent more than tbat of February and 70,000 or 3 percent above tbe corresponding level of
a year ago. An increase in employment since February bas been
reported in practically all major cities of the State. Employment
in construction sbows tbe largest gain, witb a prospective increase of 11,000 workers since the February seasonal low, while
retail trade, accelerated by Easter and other spring shopping,
added about 4,000 to its pay rolls. The food processing industry
and the aircraft manufacturing industry also employed more
workers.
Employment in tbe Nation in Marcb sbowed the first definite
improvement in five months, reacbing 57,647,000 workers. The
number of unemployed workers declined to 3,167,000, a drop of
54,000 from February, althougb remaining 727,000 greater
tban a year earlier. The number of employed persons actually
at work in Marcb was 55,832,000, wbicb was 655,000 more
tban in the previous month and was 687,000 more than in
Marcb 1948. A seasona l expansion of employment in agriculture, construction, and some other industries counterbalanced
the effect of further layoffs in other sectors of the economy.
The reductions since the first of the year in domestic crude
oil output and in imports have brought the Nation's supply of
petroleum into better balance with demand at present prices.
In the Eleventh Federal Reserve District, daily average crude
oil production in March was 2,379,000 barrels, or 392,000 barrels and 14 percent under the November 1948 peak rate. The
net reductions in daily allowable production for April of 222,000 barrels in Texas, 7,000 barrels in Louisiana, and 4,000 barrels in New Mexico may cut the District's daily average production to about 570,000 barrels below the November rate. Net
allowable production has been reduced since December by
723,000 barrels per day in Texas, 25,000 barrels in Louisiana,
and 6,000 barrels in New Mexico. The decrease in crude oil
production in Marcb as compared to February amounted to
190,000 barrels daily or 4 percent in rhe Nation and 175 ,0 00
barrel s per day or 7 percent in the Eleventh District. As compared ro a year ago, production is down 3 percent in the Nation

and 9 percent in the District. In April, production in the
District is expected to drop to about 8 or 10 percent below
March and 17 to 20 percent below a year ago.
CRUDE OIL PRODUCTION-(Barrelo)

March 1049

Area
Texas:
DisLrict 1 . ....... . . ... . . .
2 .. . ......... . ... .
3 ...... . . . . . . .

Total
production

Daily average
production

Increase or decrease in da.ily
average production rrom
March 19-48

26.768
1.298
829.!IJO
139.319
- 31.140
4.318.000
- 83.979
12.631.700
407.471
204.281
- 48.932
6.332.700
4.. ....
4 1.873
1.632
1.298,050
5 ...............
274.137
- 48.502
8.498.250
6 .................
97.405
- 23.8.\1
3.019.550
Other 6 ... ...•... .
50.845
17,668
1.886.200
7h ........ .. ......
46,977
3.095
1.456.300
7c ...........•.
614.247
- 53.150
8 .... . ........... 19.041.650
- 9.486
126.274
3.914.500
9 ..............
87,261
3.809
2.705.100
10 ............
- 2i4,802
2.126,851
6.\.932.700
Total Texas ....... . ..
134,274
5,401
4,162 .500
New Mexico . .. ... . .....
9.467
117,557
3.644.250
North Louisiana .........
- 259,934
2,378.692
73.739.450
Total Eleventh District
74,440
2.753.256
Outside Eleventh District ...... 85,350.950
- 185.494
5, 131,948
Uuited States ............ .. .. . 169,090.490
SOURCE: Estimated rrom American Petroleum Instit ute weekly reports.

... .

February 1949

---

1.114
16.OM
33.696
16.212
2.772
a9.368
9.902
4.621
2.746
44.494
12.446
2.460
184.885
222
1.770
186.433
16.626
202.11.19

Imports of crude petroleum and refined petroleum products
amounted to nearly 11 percent of the total n ew supply in the
United States in January and 10 percent in February, compared
:with 9 percent in February 1948. In 1939 such imports were
only 4 percent of the total new; supply. After allowing for tbe
effect of exports, net imports constituted 6 percent of the new
supply for domestic use in January and February 1949, compared with 4 percent in February 1948. By contrast, exports had
exceeded imports during each of the 25 years previous to 1948.
While the over-all petroleum situation is becoming more
balanced, the various sectors of the industry may continue to
have problems of adjustment. Thus, the low gravity heavy
crudes of east Texas and the sour crudes of west Texas are in
surplus supply, while higher gravity lighter crudes and sweet
crudes are in much better adjustment to requirements.
Crude oiL runs to refinery stills in March averaged about
5,420,000 barrels daily in the Nation and approximately 1,660,000 barrels in the District, representing an increase of 2 percent in the Nation and a decrease of 5 percent in the District .s
compared to the previous month. The national figure is up
1 percent from • year ago, while the District figure is unchanged.
Due to the mild winter, the demand for heating oil was
considerably smaller than had been anticipated last fall, resulting in the accumulation of heavy inventories; but in recent
weeks the refineries have been reducing the yields of fuel oil
and increasing the yields of gasoline in order to improve the
relation between the supplies of and demands for these products.
The seasonal rise in gasoline consumption during the spring
and summer months should maintain a strong demand for
gasoline.
The prices of crude petroleum, for the most part, have remained firm, althougb price reductions have been made for
Pennsylvania and West Coast crudes and weakness is reported
in the price picture for low gravity and sour crudes. Gasoline
prices, which had been declining earlier this year, remained
firm in March, while increases have been announced recendy in
some areas. Fuel oil prices have been declining for several
months and future prospects are still uncertain.
Drilling activity as measured by welL completions reflected
to some extent the general uncertainty in the petroleum situation. In the Nation during February 2,351 wells were completed, or 430 Jess than in January and 34 less than during

MONTHLY BUSINESS REVIEW

Februa·r y 1948. In the District, however, completion in February numbered 1,109, or 279 less than in January but 203
more than in February 1948.
The dollar volwne of construction contract awards in the
Eleventh Federal Reserve District in March amounted to $63,000,000, which is $17,000,000 or 38 percent more than in the
previous month and $7,000,000 or 12 percent more than in
March 1948. The increase was concentrated chiefly in nonresidential building and in public works. Residential building
awards were 12 percent higher than in the previous month but
were 22 percent less than during the corresponding month of
last year. During the first three months of 1949, construction
awards totaled only $154,000,000, which is $39,000,000 or 20
percent less than during the same period in 1948. Residential
awards were 34 percent lower, while nonresidential awards
were only 12 percent less than during the first quarter of last
year. Despite the smaller volume of awards during the first
quarter of the year, it is expected that the total for 1949 will
exceed the high 1947 figure, although the 1948 record may
not be equaled.
BUILDING PERMITS
Percentage
Pereentagochaoge
valuation rrom Jan. 1 to Mar. 31,1949 chaol;l:8
valuation
Mar.
Feb.
Valuntion 1948
1949 Number Valuation from lQ48

Ma.rch lOt!)

City

Number

Louisiana:
Shreveport .. , ..

312

951,800

-92

-13

817

I 2,830,919

381,244
1,045,740
1,548,268
961,367
1,020,915
5,928,278
767,082
2,393,971
235,995
4,434,250
1,112,8S9
293,623
2,701,BOO
1,035,725
344,635

-45
-23
-35
18
39
-53
17
-11
21
-27
-3
45
-31
35
-21

- 10
--49
8
-19
16
33
13
36
-80
-25
54
-10

1,305.873
3.433.165
4.759,525
2,882.696
2,797,478
16.18f;225
2.195.402
5,786.894
2.073,635

2
25
-21
64
-66
-39

131

232
465
743
947
663
3,220
614
1,548
618
1,607
394
387
3.204
391

20S

2,049 ,437
847,498
7,545,329
1.888,050
804,175

16,958

111.600,701

TClM:

Abilene ........
Amarillo ......•
Austin ........
Beaumont . .. ..
Corpus Christi.

Dallas .........

EI Paso ........

Fort Worth .. . .
Galveston." .. .
Houston .. ,., ..
Lubbock .......
Port Arthur ..•.

111
258
290
426
165
1.563
271
723
151
628

253

183
San Antonio.... 1,318
\Vaco . • • • .••••
194
Wichita Fall8 ...
108

Total ........... . 7,034

$25,157,652 -47
-I
'Indicates change of less than one-balf of one percent..

14~12,200

-14

10
205
-55
- 34
80
- 22
- 5,\

- 35
-41

Favorable factors in the construction outlook in the District
include greater availability of labor and materials, a small
decrease in construction costs, a large backlog of public and
institutional construction, and relatively low vacancy rates.
The winter slackening of construction and the slightly easier
housing and general construction market have reduced the demand for construction labor relative to supply so that, except
for a few crafts such as lathers and pl:Hiterers, sufficient workers
are reported to be available for current construction work. The
shrinkage in construction employment since last fall is reported to have induced noticeably greater labor productivity.

Adequate supplies of nearly aU construction materials are now
available, except for a few steel items. While lumber has been
reduced in price, very little reduction has yet occurred in the
prices of some metal goods. However, the greater availability
and more regular flow of materials have enabled contractors
to lower the costs of construction, since there are now fewer
work stoppages due to lack of materials. Some further reductions in costs of materials are anticipated this year.
VALUE OF CONSTRUCTION CONTRACTS AWARDED
(In thousands of dollars)

Eleventh District-totaL..
Residential. .... . . . . . . . .
AlIother........... ....
United States·- totaL....
ResidentiaL...........

All other.........

March
1949
$65,712

18,396

March
1948
$56,601

22,852

47,316

33,749

747,619
261,770
49!i.849

689,763
276.541
413,222

February
1949
145,114
15,603
29,511
668,467
193.073
315.394

January 1 to March 31,
1949
1948
I 155,175 I 193,057
48,173
72,714
107,002
120,263
1,199.070
1.986.936
603.971
146.889
1,195,099
1,240,041

·31 st.ates east of the Rocky Mountains.

SOURCE: F. W. Dodge Corporation.

Residential building activity in the District is noticeably
less than a year ago, with fewer large apartment projects and
fewer expensive homes now under way or planned, While construction of low-priced housing is being accelerated, often the
houses are reported to be too small, poorly built, and overpriced in terms of their size and quality. The housing shortage
has not disappeared, and practically all low-rent dwelling units
are quickly rented except in a few communities where overbuilding has occurred. Residential vacancies are found for the
most part among the higher rent dwelling units.
A decline is expected in the building of warehouses and office
buildings, while an increase is anticipated in the construction
of schools, churches, and other public and institutional buildings. Due to a few large projects, awards for manufacturing
buildings in the first three months of 1949 were 25 percent
higher than the average quarterly rate in 1948, but were 17
percent under the record 1947 rate. The postwar volume of
highway construction has been at a lower rate than in 1939, but
a larger volume of such construction is planned or in prospect.
Sewer and waterworks construction and utility construction
should be large in volume, due to the necessity of increasing
inadequate facilities now serving growing communities.
DOMESTIC CONSUMPTION AND STOCKS OF COTTON- {Bales)
March

March

February

1949

1948

1949

12,7S9
720,892

14,720
879,961

12,054
640,182

U. S. Stocks- end of month:
In consuming establishments .. 1,559,2S5
Public storage and compresses. 6,S15,51S

2,287,552
3,S75,09O

1,617,962
7,500,407

Consumption at:

Texas mills ... .... ..........•
United Statesmilla ....

Aug. 1 to Mar. 31,
This season Last season
101,602
5,060,131

104,029
6,311,107

Full text of Review (Federal Reserve Bank of Dallas) : May 1, 1949

FRASER