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1
MONGJrHL'Y
RBVIBW
FED ERA L
RES E R V E
Vol. 37, No.7
BANK
o
DALLAS, TEXAS
F
DALLAS
July 1,1952
..Atake United .states .savings Jionds
a Part
01 Your .savings Program
* There is a place for United States savings bonds in
program. Yields consistent with the need for safety
and liquidity vary according to the manner in which
savings are held or invested.
the savings and investment program of every
American .
* Individuals saved
more during the past 12 months
than in any other 12-month period since Warld War
II, and the current rate of saving continues at a high
level.
•
* ment program, United Statesyour savings and investIrrespective of the size of
savings bonds can help
meet your requirements. Savings bonds are unexcelled with respect to safety of principal and certainty of return. Savings bonds are readily convertible into cash should the need arise, without risk
of market loss, thus providing a high degree of
liquidity. Yields on savings bonds are more attractive than ever before.
* ferent ways. But may be held orsaver 's inchoice may
Personal savings
used
many difwhatever the
be, the fact remains that savings must be held or
invested.
*
Savings may be invested in capital assets either directly, such as in housing, or indirectly, such as
through the purchase of corporate securities. Savings
may be held in the form of currency or accumulated
cash balances in demand deposit accounts.
* and takemay formchanneled intoclaims, such as savSavings
be
savings institutions
the
of increased
ings deposits or shares, or may be used to build
equities in pension funds, annuities, and life insurance. Savings may be kept in savings bonds or other
United States Government securities.
*
The needs of each saver and each investor may vary
from those of every other. Personal preference for
one form of saving or investment over another is
important.
*
There are three considerations, however, which are
common to the decisions of most individuals in choosing savings or investment media appropriate to their
needs . These are Safety - Liquidity - Yield
*
A well-planned program includes a satisfactory balance among these three factors. Each is present to
some degree with respect to most types of savings
and investment.
*
Safety and liquidity are of overriding importance in
most individual C\lses and must be considered in any
*
There is a type of savings bond to meet the needs
of every saver and investor. Purchases of the new
Series E bonds through the payroll savings plan are
well suited to the programs of regular saving of most
individuals. New Series H bands fulfill the requirements of savers for current income, while the new,
improved Series J and K bonds are attractive media
for other investors.
* and intermediaterevisions of savingsyields to together
Recent upward
in both
maturity
yields
bonds,
with increases in the amounts that may be purchased
annually, are features to be considered in planning
your savings program.
* Increased defense spending in the months immediately ahead and the necessity of raising funds to
meet those expenditures constitute a problem of considerable magnitude for the Treasury. Moreover, that
problem must be considered by each of us as Americans interested in the defense of our Nation and the
preservation of the value of our savings.
* Help the Nation and help yourself through a carefully
planned program of saving that includes the purchase
of United States savings bonds.
* to purchase the new, more attractive United States
Plan your savings and investment program and plan
savings bonds.
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
•
BoAIUl OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
COMPTROLLER OF THE CURRENCY
FEDERAL DEPOSIT INSURANCE CORPORATION
NATIONAL ASSOCIATION OF SUPERVISORS OF STATE BANKS
AMERICAN BANKERS ASSOCIATION
Washington, D. C.
June 23, 1952.
To the Chief Executive Officer:
Your business, and ours, is to help people face financial problems
squarely and solve them realistically. This has led to a pay-as-you-go
and save-as-much-as-you-can policy during the defense emergency. This
policy has paid dividends, --more than IS months of relatively stable prices
in the face of rising defense expenditures.
As essential spending for our defense continues to rise, maintaining
a pay-as-you-go program becomes increasingly difficult.
We must therefore continue to encourage the upward trend in savings. This is the people's
method of minimizing the effects of inflation.
United States Savings Bonds play an important part in the public's
savings program. Savings Bonds can be sold and are being sold. Bankers
have played an indispensable role in this great thrift program. More than
57 billion dollars are now outstanding, --substantially more than at the end
of 1945. About 2 million more payroll savers were Signed up in 1951 by
concerted efforts in bU!liness and industry. Sales of small denomination
E bonds were up almost 25 per cent in the first four months of 1952.
In order to show needed improvement in sales of the larger denominations, we solicit the same effective support by bankers to inform their
customers as to the features of the improved Savings Bonds Series E, H,
J, and K. The public should be informed that these series now carry improved investment yields which make them more attractive to larger as
well as smaller denomination buyers.
We endorse the Treasury's new Savings Bonds Program and we
urge every banker to enlist personally in an intensified effort to promote
the sale of these new and improved bonds.
Insuran
Comptroller of the Currency
prq.&
~SSOCiatl~n
NatlOnal
of Supervisors of State Banks
{o/h~~
President, American Bankers Association
F'EDERAL RESERVE BANK
OF DALLAS
R . R. GILElERT
PRESIDENT
June
27, 1952
To the Principal Executive Officer
of the Bank Addressed:
The Federal and State supervisory authorities and the President of the American Bankers Association recently sent you a joint letter,
endorsing the Treasury's savings bond program and urging your. personal
support in promoting the sale of the new Series E, H, J, and K savings
bonds. I should like to take this opportunity to add my unqualified
endorsement to their statement.
United States savings bonds always have been regarded as being of the highest investment quality, but the new revised series offer
even better investment opportunities - both for the individual investor
and the institutional investor. Higher yields to maturity, as well as
for intermediate periods, and more favorable extension privileges make
these bonds more attractive.
In the months ahead the Treasury will face financing problems
of considerable magnitude. Spending for defense will increase, and the
Government will run a budget deficit. If inflationary pressures are to
be minimized, the deficit must be financed as largely as possible by the
sale of securities to nonbank investors, rather than to banks. Promotion of the sale of savings bonds is an essential part of such a policy.
The bankers of the Eleventh District have played an important
part in making the savings bond program of the past a really remarkable
success. Your assistance in support of the new program is just as essential.
I urge your cooperation and ask that you request the officers
of your bank to familiarize themselves with the program so that they can
inform the people of your community regarding the advantages of savings
bonds, first, as a safe, sound, profitable investment opportunity and,
second, as an essential part of the Nation's program to finahce its defense in a noninflationary manner. I know that you will accept this
challenge and important responsibility.
Sincerely yours,
uke .New H h'on~
H 801m TlRlIS Aim CONDITIONS _ _ _ _ __
SIMILAIlITJU TO lID • BOIIIl
1.IDteresL _____________
3.0OS to uturity
SIMILARITIES ...
2.lssue date ______________ First day of .onth of
purchase
3 .•• turlt1 ________________ 9 years and 8110nths
4.Annual li.it ( .. turity
value) ______________
to new E Bond
$20,000
5.El1g1ble 6ubscribers _ _
~]nd1vldua1&
6.Bearer or reglstered ___
~Reel&tered
only
ooly
7 .Kegotllbl1 t ty____________ MODe
8.E11C!bl11ty as collateral _______________ NoDe
....
H BOIm TERIIS Aim CONDITIOIIS _ _ _ _ _ _ __
DI'FPERElICRS P'ROII
nw
E DOlfi)
H
I.Type of bond ___ Accrual
2 . Effe~tLve
Current income
June I, 1952
date_ May I, 1952
3 . MaturltJ value
l issue prtce_ 54 for every $3
ioveated
DIFFERENCES
Par
4.Rede.p. values_ Incr, each 6 .os.
Always at plir
5.0eno_lnatlons __ $25, $50, SlOO ,
$200, $500,
$500, 51,000,
$5,000,.
SlO,OOO
$l,OOO,~
6.Redeeaabllity__ After 2
$10,000
.as . ,
After 6 .os . , on
1 110. 'S notice
on de .. nd
7.ElItensLon _____ Up to 10 yrs . IIOre
None
8.AvailabiUty
of new stock __ Old stock tempo-
Interi. receipts
rarily
YIELD COMPARISON OF NEW E AND H BONDS
Investment yield
Period Held
1/2 )'ur ____ _ _ _ _ __ __ __ _
1 year ____ _ ___________ _
3 yoar6 ________________ _
5 yearS _ ______________ _
7 years _______________ _
Hew
Series E
1.0""
Series H
.80\
1.59
2.25
2.52
2.72
2. 2 1
2.49
2 . 73
3.00
3.00
1.65
9 years and 8 nonths
(IIUlturllyL ___________ _
YIELD
uke flew $erieJ J and K JJondJ
~_ _
Y1ELDS ON SERIES F AND J BONDS _ _--,
For Selected Periods
-".::!:'''~-'
SERIES J BONDS REPLACE SERIES F BONDS,
giving higher intermediate and
over-all yields, and •..
SERIES K BONDS REPLACE SERIES GBONDS,
~_ _
with similar increases in yields.
YIELDS ON SERES GAND K BONDS _ _--,
For SeIIctId Pwrtods Held
9actJ oIbout uke
Net
r--_ _ _ _ IMPROVED E BOND YIELDS _ _ _ _---.,
For Selected Period, Held
3.00
INTERMEDIATE YiElDS HIGHER DURING FIRST 9 YEARS, 8 MONTHS AND ................. .
CHANGES II! E BOIID TERMS AIID COIIDIT IONS
New E
Old E
NOW YOU MAY BUY EACH YEAR
] ,Maturity_______
Effective 5/1/52
_10 yrs.
9 yrs.
•
8 mos.
2.lnle r esL ______
MORE E bonds
2.900, to ma turi ty 3.000, to ma lurl ty
3.Annual l1mlL ___
510,000
4 .De nomlnations
(matur. va lue L. 525, S50, SlOO,
$200. $500,
With SHORTER maturities
At HIGHER yields
$20,000
Sl,OOO
5. HedeeN bll i ty
00
demand. ____ .After
6.Availabllity of
new stock __ _ __
60 oays
•
Same plus $10,000
After 2 month s
-_.-- --- --- --- Old stock t e mporarily
OffliCt of the Secretary of the lra.aSlJy
Offa d "- TdncoI SIoff
•
t!rteJ
...--_ _ IMPROVED E BOND EXTENSION YIELDS _ _.....,
.
For Selected Periods Held During Extension
~es
....
-...--
-."''''-
~
........................... :......................... 0URING 10·YEAR EXTENDED MATURITY PERIOD
E BOND EXTENSIONI_ _ _ _ _ _ _ _ _ _ __
~
Ilf TERIS AND CONDI T IONS
Old exte nsion
New extension
BUY AND HOLD E BONDS
1. InteresL ______ _2.9()\ to extended 3 . 0()\
IlAturi t7
2.Extended Ma tur ity va l ue
per $ 1 00 bond __
$133.33
3 . Applica U an to
old E's _ _____ _ . Appll es to outstand!ng E's
iSsu e d 5/1 / 4 1
to 4/1 / 42
4 .Curr e nt 1 ncoae
bond o p tion _ _ __ _ G bonds redee.able at pa r
orla <t tho SeeMory of the fnlosuy
Otfa 01 !he T.ari:cI StIff
$13 4 .68
To outstanding
E'. begin ning
with 5/1/42
Iss u es
K bonds redeema bl e at pa r
To earn MORE
During EXTENSION period
With improved OPTION
100
MONTHLY BUSINESS REVIEW
REVIEW OF BUSINESS, INDUSTRIAL, AGRICULTURAL, AND FINANCIAL CONDITIONS
Agricultural conditions in the District
generally are very good, although some
areas still need more moisture and mois·
lure reserves in other areas are becomin g
depleted. Harvest of winter wheat and oats has made good
progress; yields per acre are very good. Weather has favored
the cotton crop, but insect infestations are heavy in some
areas. The sorghum grain and peanut, crops are in good con·
dition. Fruit production in the District this year will be
relatively smalL Han'est of spring vegetables is proceeding
satisfactoril y; production estimates for most crops are down
from last year. Marketings of cattle have been running 20
percent above last year; marketings of other livestock show
littl e change. Farm commodity prices average about 10 per·
cent below a year ago.
Department store sales in the Eleventh District in May
were 14 percent above April and 14 percent above May 1951;
average sales per business day were the highest for any May
on record. Suspension of credit controls, along with other
factors, boosted instalment sales 49 percent above April and
90 percent above the relatively low May 1951 leveL Large
percentage gains in sales were scored by television sets, ai r
conditioning, laundry eq uipment, and mechanical refri gera.
tors. End.of·May inventories at department stores were 12
percent below a year earlier; orders outstanding were 20 per·
cent above the low level of a year ago, when merchants were
attempting to reduce large inventories. Sales at district retail
furniture stores in May registered gains of 38 percent over
April and 31 percent over May of last year. Sales of automo·
biles in the District have not responded to the easing of credit
terms as had been expected.
Department store sales in the Eleventh •
Federal Reserve District rose durin/! May
to thl' higbest monlh ly level for the year
to date, showing an increase of 14 per.
ren t above Apr il and 14 percent above May 1951. The average
doll ar volume of sales per business day in May was the highest
for any May on record.
When Reglliation W was suspended on May 7, it was the
general consensu s in the trade that the suspension of cred it
controls would be only moderately stimu lating to department
store sales. The figures representing the full month's oper·
ations, however, indicate tbat the suspension, together with
other factors, stimu lated sales to a considerable degree.
Department stores extending instalment credit reported that
their instalment sales during May rose 49 percent above April
and 90 percent above May of last year. Instalment sales durin g
Apri l represented 12 percent of total store sales. which is
about the same percentage as during the first quarter. During
May, however, that type of credit sales rose to 16 percent of
total store sales and accounted for more than 75 percent of
the total store in crease over year·ago hgures. 'Charge account
sales durin g May were 4 percent above a year ago and rep·
resen ted approximately 49 percent of total sales, compared
with 52 percent during April.
RETAil TRADE STATISTICS
(Percentage change)
Line af trode
b y area
DEPARTMENT STORES
Totol EJe't'entt. District ••• • • • • •••• ••
Corpus Christi • •••••••••• •• •••••.
Dallas ••••••••••••• ••• • ••• , ••••
EI Poso • • •••.••••.• • ••••• •• ••• .
I.
Fort Worth •.•• . •••• • • • . .•.• .. •.
Houston •••••• •••• •••• , ....•. •••
Son Antonio ••••••••••••••••••• •
Shreve port, la . • •. •••••••••••• . •.
Waco . •••.•• . •..•••• •• ••• ••• ••
Other cities ••••• . •..•••.••••••••
FURNITURE STORES
23
9
10
10
19
20
26
39
8
TOlal Eleventh District ••• ••...•. • ••
31
Austin •••••••• •. •... •••.••••••.
Dollal •••••••••••••.•• . • • .•.. •.
85
Houston ••••••• •.•• . •••..•. •. .. .
60
Port Arthur ••• •••• . ••.••.••••. • _ -13
San Antonio ••••• • •• • _ • __••••.. _
41
Shreveport, Lo ...... . .. .. _• _ •••• _
11
Wichito Fo ils •••• •••• • •••••••••..
1.
HOUSEHOLD APPLIANCE STORES
19
Totol Eleventh District.
••
0
••••••••• ·,
001101 ••• • ••••••••••••••••• ••
0
_
5
May 1952 f rom
5 mo. 1952
compo with
5 mo. 1951
Moy
1951
The recent oil strike caused a loss of an estimated 50,000,·
000 barrels production of refined petroleum products. At the
end of May, national stocks of gasoline, kerosene, and distil·
late were down 12 to 15 percent as compared with a year
earlier; residual fuel oil stocks were off 3 percent. Meanwhile,
refineries are attempting to increase production in order to
build up the reduced stocks. Crude oil stocks accumulated
during the strike to reach the highest level in more than a
decade. WeeKly crude oil production in the Eleventh District,
having declined since March, was down in the week ended
June 14 to the lowest rate since March 1951, except for the
strike period. Drilling activity continues at a record leveL
STOCKSl
NET SALES
May 1952 from
14
6
14
-2
9
16
21
27
20
11
38
49
5.
61
16
31
31
9
4
19
-1
3
1
8
5
12
21
-3
Moy
1951
-12
-11
-14
-16
-9
-12
- 12
-1
1
-9
-.
-3
-3
-4
-2
-2
9
-5
-5
-.
- 17
- 6
- 36
-10
- 28
-7
-20
_ 1
1
- 11
-I
43
28
1 Stocks ot end of month.
In the 4 weeks ended June 18, loans at weekly reportin g
member banks rose fractionally; about two· thirds of the
increase was in the category including co nsumer· type loans.
Loans for finan cing security transactions rose almost 4 per·
cent, while real estate loans and loan s to banks declined.
Investments rose 2 percent, reflecting principally an expansion
in holdin gs of Treasury bills, although holdings of Treasury
bonds also increased. Demand deposits rose 3 percent; time
deposits increased 1 percent. Total resou rces and cash assets
also scored gains.
I
Indicates chon.. o of
I." thon one·holf of I percent.
Although substantial gai ns over a year ago were recorded
in some of the soft goods lines, such 3 S dresses, sportswear,
and men 's clothing, the greatest percentage increases were in
ohomefurnishings. Furniture and bedding increased 11 per .•
cent. Sales of television sets rose 241 percent, while in the.
major househol d appliance group, sales of air conditioning
units, laundry equipment, and mechanical refrigerators
showed increases of 362 percent, 210 percent, and 126 per·
MONTHLY BUSINESS REVIEW
cent, respectively. On the other hand, sales of radios and
phonographs declined 19 percent.
•
District department store sales through June 1'4 continued
substantially above a year ago. Cumulative weekly sales for
the year to that date were 4 percent above the comparable
period of last year. That compares with a 4,· percent decreasc
ror the department sto rcs of the Nation as a whole.
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
( 1947-49
=
100)
ADJUSTEDl
UNADJUSTED
Moy
1952
Area
SALES-Doily overage
Eleventh District .. . . .... . ...
Dallas ... .. ............. . .
Houston •••••• • •.. •.•.• •• • .
STOCKS-End of month
Seventh Diuriel .... .....•..
125
116
141
April March Moy
1952 1952 1951
Moy
April
Moy
March
1952 1952 195 2 1951
114
106
126
105
102
116
118
106r
109
126
120
142
114
109
128
115
108
129
111
110
120
125p 129
131
141
124p
122
124
District retail furniture stores during May registered a
38·pcrcent gain over thc April volume and a 31-percent rise
above a year ago. The increase was sharp and was contributed
to by the relaxation of down payment and credit terms.
Moisture conditions over the District
at mid·June generall y were the best in
2 years, although there were some dry
areas, notably several South High Plains
and Edwards Plateau counties of Texas. Steady winds and
growing crops rapidly depleted moisture reserves in the last
half of the month, however, and more rain is needed in many
areas. Hot, open weather in June favored crop development
and permitted farmers to make good progress in planting
and replantin g summer crops. Feed crops and pastures made
good to excellent growth during the month.
140
WINTER WHEAT PRODUCTION
Adjusted for seasonal ... ariotion.
r Revised.
p Prelimina ry,
lin thousands of bushels)
The retail value of inventories at department stores at the
end of May is estimated at a total slightly under April and
approximately 12 percent below stocks on hand at the end
of May 1951. The largest percentage reduction of inventories
was in homefurnishings, which experienced the largest per·
centage increase in total sales. As compared with May of
1951, inventories of furniture and bedding declined 30 per·
• cent, and major household appliances fell 49 percent, while
, stocks of televi sion sets, radios, and musical instruments were
reduced by 31 percent.
WHOLESALE TRADE STATISTICS
Eleventh Federal Reserve District
(Percentag o change)
STOCKSlp
NET SAlESp
May 1952 from
May 1952 from
5 mo. 1952
lin e of trode
orl.tgs and sundries ...... ....
Dry goods .................
Grocery (full.line wholesalers
not sponsoring groups) .•. ..
Hardwa re ......... ....... .
Industrial supplies .. .........
Metals .. ... .. ............ .
Tobecco produch ... .. .... . .
Wines and liquers .. ........
Wiring 5uppJil!S, construction
meterials distributors ... ...
101
Moy
1951
1952
5 mo. 195 1
Moy
1951
1952
-4
-3
-7
- 12
20
-37
I
-8
4
5
8
-8
3
20
-8
5
-7
-8
1
-2
_11
14
6
6
15
9
3
-13
-4
3
3
-11
-2
- 12
-6
0
April
camp. with
7
- 13
9
-6
April
,
Stocks 01 end of month.
p-Prelimino ry.
I lnd1coles change of leu th<ln one·half of 1 percent.
SOURCE; United Stotes Bureau of the Census.
I
The total value of merchandise on order at the end of May
was 6 percent above 1 month earlier and 20 percent hi gher
than the extremely low level at the end of May 1951. Prior to
May of last year, receipts of merchandise had been excep·
tionally heavy; the district stock index stood th en 8t141, com·
• pared with 108 in May 1950. As a result, new orders were
, curtailed until in ven tories could be brought into better rela·
tionship with the level of demand. The current volume of
stocks on order may be takcn to represent a conservatively
optimistic view regarding a continuing high demand.
Average
1941-50
Area
Arizona .. ................ ........
New Mexico ..................... .
Oklohoma ..... .... ...... .. . ..... .
Texas ........ ....... , ...........
.
.
.
.
TOlal ............ .......... .
United States .. . ...••.• .• •. . , ..... .
1951
Indicated
1952
3,800
71 ,737
60,347
572
786
575
628
38,902
90,132
136.455
799.977
57.567
645.469
132.867
1.060.296
571
17.307
41,532
SOURCE; United Stales Department of Agriculture.
Harvest of the District's winter wheat crop, which began
in IIorth Texas about June 1, is well along on the High Plains.
Yields are better than were expected earlier in the season. The
Texas crop is estimated at 41,532,000 bushels, whi ch is far
above last year's small harvest of only 17,000,000 bushels but
still below average. The Oklahoma crop estimate is placed at
90,132,000 bushels- more than double last year's production
and substantially above average. The New Mexico crop is
down from last year, while the Arizona estimate reflects little
chan ge. United States production is the largest on record.
Harvest of the oat crop in the District was carried forward
in June with very good yields.
Cotton planting was active in the Hi gh and Low Rolling
Plains in June. Warm days favored germination. The crop in
the Blacklands, east Texas, and northern Louisiana has made
good growth. Light to severe insect infestations are reported
in cen tral , eastern, and southern parts of Texas. Official esti·
mates of the acreage of cotton in cultivati on will be released
July 8; meanwhile, private forecasts indicate a large crop,
although the acreage in Texas may be smaller than in 1951.
The sorghum grain crop in the District is in good concli·
tion in most areas. In the commercial area around Corpus
Christi, sorghums began maturin g in carly June, and harvest
began about midmonLh. Planting of the later crops On the
Hi gh Plains is virtually complete. The peanut crop in southern
counties of Texas is growing well. The crop in northern
counties is getting ofT to a good start, as rains in late May and
early June were greatly beneficiaL
MONTHLY BUSINESS REVIEW
102
Ranges and pastures in the District have shown a remarkable improvement since the widespread rains of May and
lune_ Moreover, feed grain and hay prospects are generally
good. Cattle and calves are gaining on the new grass and are
in good condition in most parts of the District. Sheep. on the
other hand, still show the effects of the drought.
LIVESTOCK RECEIPTS
(Number)
FORT WORTH MARKET
May
Class
May
1952
1951
Cattle ••....... .
~~,812
3~,350
(1111"'85 ••••••••• •
14,701
60,693
87,3H
10,732
68,972
130,752
Hogs .••........
She.p ......... .
SAN ANTONIO MARKET
tfs~
May
May
April
1952
1951
1952
33,719
10,609
83,435
66,120
26,027
13,264
4,202
123,518
18,754
14.019
6.350
18.155
9,013
5,371
120.097
'15,921
l Includes goats.
Receipts of cattle on the Fort Worth market in the 4 weeks
ended June 14 showed an increase of 89 percent over the
comparable period last year; receipts of calves were up 40
percent. Marketings of hogs were off 28 percent, while receipts of sheep and lambs were trailing last year's figures by
14 percent, due to latt<r movement of spring lambs to market
in large volume. For the year thus far, marketings of cattle
and calves in Fort Worth were up 20 percent compared with
a year ago; marketings of hogs and sheep show no significant
net change.
FARM COMMODITY PRICES
and savings notes. At the time of the offering of the bond the
Treasury had borrowed $1,600,000,000 through increasing ..
the weekly offerings of 9l-dal' bills (by $200,000,000 in ,.
excess of maturities) during 8 of the 9 weeks ended June 5.
.In addition, the Trcasury had raised about $318,000,000 during May through the offering of 2%,-percent nonmarketable
bonds.
The preliminary announcement of the offering of the new
2o/s·percent bond was made on June 10, with the announcement giving the approximate term of the secnrity, the amount
of the offering, and the method of handling proceeds of sales
(deposit of the proceeds in Tax and Loan Accounts was permitted). The Treasury, in its press release of June 12, announced that nonbank subscriptions for the new bond would
be accepted without limit and would be allotted in full. It
was announced also that subscriptions from commercial banks
for their own account would be restricted in each case to an
amount not exceeding combined capital, surplus, and undivided profits, or 5 percent of total deposits, whichever was
greater; subscriptions for amounts up to and including $100,000 from commercial banks would be allotted in full; and
subscriptions for amounts over 5100,000 from commercial
banks would be allotted on a percentage basis to be made
puhlic at the time of allotment. A linal announcement of the
terms of the new bond was made on June 16, giving the coupon rate and the date of maturity.
GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
Top Prices Paid in Local Southwest Markets
Week ended
Commodity and market
COnON. MIddling 15/16-inc.h. Oollas .....
WHEAT. N.o. 1 hard, Fort Worth ••••••.•.•
OATS, No.2 whit •• Fort Worth ••...•.••.•
CORN, No.2 yellow,.!, Fort Worth ....••••
SORGHUMS, No.2 yellow milo, Fort Worth.
HOGS, Choice. Fort Worth ....•. ......••
SLAUGHTER STEERS, Choice, Fort Worth . .•
SLAUGHTER CALVES, Choice, Fort Worth...
STOCKER STEERS, Choice, Fort Worth ••••.
SLAUGHTER LAMBS, Choice. Fort Worth .••
HENS, 3·.4 pounds. Fort Worth .......••.•
FRYERS, Commercial, Fort Worth ••••••...•
BROILERS. South Tuas ..................
EGGS, CUfrent Receipts, Fort Worth •••••••
TURKEYS, No.1 hens, Fort Worth •••••• . . •
Eleventh Federa l Reserve District
Comparable Comparable
week
week
Unit June23,1952 lad month
lb.
bu.
bu.
bu.
cwt.
cwt.
cwt.
cwt.
cwt.
cwt.
$ .4010
2.4BV2
1.061A
2.16l<\
3.25
20.75
33.50
34.50
30.00
lb.
lb.
lb.
25.50
.19
.30
.29
case
12.50
lb.
.28
(Averages of doily ftgurel. In thousands of dollars)
S .3860
2.68Yo.
1.06l<\
2.19
3.32
22.00
35.00
35.00
35.00
29.50
.19
.29
.28
10.50
.2 8
COMSINED TOTAL
lost yeor
$
.4477
2.60Y,
1.0.4'12
1.98l<\
2.60
22.75
36.00
36.50
37.00
33.50
Farm commodity prices in the District continue to average
below a year ago. Prices of individual commodities, meanwhile, are showing divergent trends. During late May and
most of June, prices of cotton, wool, and poultry advanced,
while most classes of livestock and some grains suffered losses.
The Treasury borrowed approximately
$-1
.,249,000,000 of new money in June
through the offering of a 2%-percent intermediate-term bond dated Jul y 1 and
maturing June 15, 1958. The new marketable bond was offered to investors for cash on June 16; subscription books
clo~ed the same day_ The completion of that financing program increased the amount of new money borrowed by the
Treasury during April, May, and June to a total of approximately $6,167,000,000, exclusive of the sales of savings bonds
Dote
Gross
demand
nmo
RESERVE CITY BANKS
Gross
demond
COUNTRY BANKS
Gross
Time
demand
Time
May 1950 ...... 55,481,505 $670,514 $2,627,316 $423,42 8 $2,854,189 $247,086
May 1951 •..... 5,801,415
January 1952.... 6,779,455
February 1952 ... 6,567,846
Moren 1952. . . .. 6,513,810
April 1952... . .. 6,451,803
May 1952 •.. • .. 6,329,241
658,973
714,332
72 1,578
719,84.4
73j,170
736.861
2.697,033
3,162,301
3,030,813
3,046,289
3,021,143
2.959,228
362,380
391,577
395,992
392,193
401,280
403,137
3,104,382
3,617,154
3,537,033
3,467,521
3,430,660
3,370,013
296,593
322.755
325,586
327,651
332,890
333,724
The step-by-step procedure of announcing the offering permitted the market to adjust to the anticipated new supply of
marketable securities. Prices of the taxable bank-eligible
bonds of intermediate maturity declined by 8/32 to 15/ 32
following the arnlOuncement of June 10. Further moderate
adjustments in the prices of those issues occurred during the
remainder of the week. Decreases in closing prices between
June 10 and June 16 ranged from 8/32 to 17/32, with the
2%'s of March 15, 1957-59, showing the greatest change. At
the close of the market on J line 19, the bid price of the new
2%-percent bond (on a when-issued basis) was 100 14/32.
Total subscriptions for the 2%·percent bonds were more
than three times the amount of the offering, with nonbank
subscriptions alone amounting to $3,642,000,000. In accordance with the Treasury's announcement of June 12, nonbank4
subscriptions were allotted in full. Subscriptions of commercial banks up to $100,000 were allotted in full; commercial
banks subscribing to more than that amount were allotted
$J 00,000 each. Total allotments amollnted to approximately
MONTHLY BUSINESS REVIEW
sentin g cash subscriptions. Private investors accounted fOJ
71 percent of the cash su bscriptions, with Treasury invest·
ment accounts supplying the remainder_
BANK DEBITS, END -Of-MONTH DEPOSITS
AND ANNUAL RATE Of TURNOVER Of DEPO SI TS
(Am ounts In thousond, af dollars)
DeBITSl
DEPOSITS'
PercenlClge
chonge from
Mgy
City
1952
ARIZONA
Tvcson ...... . ....... $
LOUiSiANA
Monroe . ....•... .. . .
Shreveport . •......• .
HEW MEXICO
Roswell .••.•••.•••• •
98,877
IA
18
22,312
13
16
Beaumont •••. .. • . •• .
Corpus Chrilti ...... . .
Corsicana •••.•••••• •
0 0110$ .•. •••••••••••
EI P050 .•. ..........
Fort Worth ... . . . ...
Galveston . .. .......
HoustOfl • ••..••..• ••
Laredo ..... . . .. . . .
.
.
.
.
lubbock . .... . .... . .
Port Arthur . . ....... .
San Angelo ...... .. . .
San Antonio .. • .. . ...
Texarkana' ... . ... .. .
Tyl&r .... . ... . .. " ..
Waco." ... . . . ,' , ..
Wichita Falls ........ .
70,259
82,887
10101-24 cities . . ...... $5,585,995
6
8
19
6
5
3
12
12
-I
25
17
-9
-8
4
17
18
2
11
9
May
May
April
1952
1952 1951 1952
11.2 10.2 10.7
7
53,664
136,62A
138,287
123,231
137,264
1 1,962
1,438,900
170,074
5 15,770
83,554
1,598,549
27,621
101,336
36,623
39,95A
378,918
20,621
56,565
Annual rQI. of turnover
May 3 1,
104,910
22
46,00 2
196, 141
TEXAS
Abilene .... .. . .... • .
Amarillo ••••••• •.• ,_
Austin . . . . . . . . . . . . . .
April
195 1 1952
May
48,0 14
-1
4
201,935
26,706
4
-20
-1 5
54,559
114,232
121,891
96,892
106,242
23,159
1,000,144
145,795
410,050
101,688
1,1.44,427
26,031
99,465
43,036
2
384,632
-1
-4
2
-6
1
-5
6
-1
,
19
- 6
-2
50,238
25,516
-2
-7
54,944
85,243
105,278
2
10
$4,575,027
11.5
10.8
11.5
10.1
10.3
10.0
11.6 10.8 11.3
11.8 11.5 11.3
14. 3 14 .5 14.3
13.8 14.2 17.9
15. 1
15.6
6.4
17.3
14.2
15.5
9.8
16.7
13.1
12.4
10.0
9.6
11.9
9.7
12.5
9.8
9.5
14.6
15.6
14.8
6.5
18.1
15.1
15.6
10.1
15.8
12.6
11.3
1 1.8
10.3
11.9
8.8
11.3
10.6
9.5
14.6
14.8
9. 8
16.4
11.6
12.8
11.4
9.4
1 1.6
10.1
11.4
9.8
10.2
14,6
•
54,249,000,000, or about $749,000,000 In excess of the
amount of the original offering_ Subscription and allolment
figures were announced by the Secretary of the Treasury
Jun e 19,
On June 10, at the time of the preliminary announcement
of the offering of the inlermediate bond, the Secrelary of the
Treasury also announced that holders of the 1%-percent certificates of indebtedness which mature July 1 in the amo unt
of $5,216,000,000 would be offered (on June 16) a new 1%percenl certificate in exchan ge for their holdings. The refunding security is dated July 1 and matures June I , 1953,
The Treasury announced on J une 5 the subscri ption and
allotmenl f'gures with respect to the offering of additional
amounts of the 2%,-pereenl Treasury bonds, Inveslment
Series B-1975-80, for cash and in exchange for the 2Y2-percent Treasury bonds of 1965-70, 1966-71, and the two restricted issues of 1967-72, Total subscription s amounted to
$1,757,760,000, with $450,400,000 of that amount repreCONDITION Of THE fEDERAL RESERVE BANK Of DAllAS
(In thousands of dollars)
June 15,
•
Tota l gold cartiReate reserves .. , ............
Discounts for member bonks ... ........•. . ..
Industrial advances, .... . . ... . ........•....
Foreign loans on gold ..... . , .. . . .. . ..•....
U. S. Government securities . . ...............
T0101 earning osseh, . . . .. .. . . .............
Member bank reserve deposits. , ......... . ..
Federal Reserve nates in actual circulation ... . .
June 15,
1952
195 1
$ 727,499 $ 492,144
6,700
2,461
40
4
304
0
1,021,442 1,098,578
1,028,450 1,101,079
998,572
928,022
694,808
628,2 12
May 15,
1952
$
CONDITION STATISTICS Of WEEKLY REPORTING
MEMBER BANKS IN LEADING CITIES
El eventh Federal Reserve District
15.4
15.2
7 .0
17.2
14.9
1 De bits to de posit accoun" except int&rbank accounts.
2 Demond and time dep01its. including certified a nd officers' checks outstanding but excluding deposits to the credit of bonks.
s The5e f'Igures include only one bonk In Texarkana, Texas. Total debits for all banks in
Te xarkana, Texas·Arkansas, including two banks located in the Eighth DIstrict. amounted to
$39,580,000 for the month o f May 1952.
, Indicates change of len than one-hal f of 1 percent .
Item
Between May 21 and June 18, most major categories of
assets and liabilities of the weekly reporting member bankE
in the Distri ct rose. The more notable changes included increases in total resources, cash assels, and deposits. On June
18, total resources of lhese banks amounted to $4,314,534,000,
refleetir1g an increase of about 3 percent during the 4-week
period and 12 percent during the preceding 12 months,
678,790
5, 100
5
38
1,022,840
1,027,983
987, 167
681,747
(In thoulclnds of daUa rs)
Item
June 18,
1952
Total loa ns (grolS) and investments •...... . ... $2,909,040
Totalloans-Net1•• •• • •••• , ••••••••• " . , 1,538,494Total loon s-Gross . ... , .... , . • . .... , .... 1,5 54,987
Commercial, in dustrial, and agricultural
loans .......... . .... . ...... , ... , .. 1.0-46,637
9,899
loons to brokers and dealers in securities ..
Other loan' for purchasing or carrying
61,454
securities, . ..... . ... . ...... .. . , ... .
Real estate loans. , . . ....... . .. ...... .
114,588
10,768
Loons to banks ...... . ... . . ...........
All other loans ........... . ......•... .
311,641
1,354,053
Total inVestments .......................
U. S. Treasury bills ............. , .... , .
214,126
165,127
U. S. TreallKY certificates of in debted ness.
U. S. Treosury notes ...................
177,028
U. S. Government bands (ind uding guar·
627,630
anteed o bligations) .... .. .. ... ......
170,142
Other securities •. .. ... .. ..............
557,968
Reserves with Federa l Reserve Bonk . . ........
Balances with domestic bon ks .... .......... .
447,848
Demand deposils-odiusted s.............. .. 2,376,777
467,453
Time deposits eltcepl Government . . ..........
88,216
United States Government deposits ...•.. . ....
Interbank d emand deposits .. , ..... . ... .. .. .
753,354
14,500
Borrowings from Federa l Reserve Bonk •.• . . . ..
June 20,
May 2 1,
1951
1952
$2,628,076 $2,877,078
1,444,361 1,531 ,258
1,461,072 1,547,696
1,000,283 1,045,586
8,412
8,381
57,228
60,488
, 15,062
122,443
1,245
11,325
271,461
306,854
1,167,004 1,329,382
88,263
195,213
80,688
169,959
259,251
177,363
574,297
613,488
16.4,505
173,359
550,590
570,87 1
351,975
389,006
2,209,992 2,348,558
-441,451
463,86 1
86,631
91,862
601,751
705,023
10,250
0
1 After deductions far reserves and unalloca ted charge-offs.
S Includes all demand d e posits othe r than Interbank and United States Government, less
cdsh items reported a s on hand o r in process of collectIon.
Loans rose $7,291,000, or less than one-half of 1 percent,
during the 4 weeks. Approximately two-thirds of that increase
occurred in the category "all other" loans, which includes
consumer- lype loans_ Loans for financing security transactions rose almost 4 percent, while real estate loans and loans
to banks declined. The declining trend of commercial, industrial, and agricu ltural loans which prevailed during most
other weeks of this year was reversed temporarily, with loan s
of that type showing a fractional increase_ Increases in loans
to commercial and industrial borrowers, such as sales finance
companies, construction firms, and manufacturers of petroleum and related products, were more than ofTsel by decreases
in loans to commodity dealers, wholesale and retail trade
establishments, and grain and milling concerns_
Inveslments of the weekly reporting member banks rose
$24,671,000, or 2 p~rcent, during the 4 weeks ended June 18,
with the expansion in holdings of Treasury bills accounling
ror most of the change. Investments in Treasury bonds increased, while holdings of certificates, notes, and non-Government secu rities declined,
Deposit trends included increases of $107,751,000 in demand deposits and S3,592,000 in time deposits, or 3 percent
and 1 percent, respectively, Approximately equal increases in
MONTHLY BUSINESS REVIEW
104
deposits of individuals, partnerships, and corporations and
interbank deposits accounted for about 90 percent of the
expansion in demand deposits. Time deposits of individuals
and bu sinesses rose somewhat more than total time depo sils.
States total, compared wilh only 9 percent a year ago. On the
other hand, nonresidential awards, totaling $84,000,000,
showed a decrease of 10 percent from the previous month .
and were 17 percent below May 1951. In May they accounted
for 11 percent of the United States total, as compared with
9 percent a yea r ago.
NEW PAR BANK
The oil industry faces an unbalan ced situation in refined
and crude stocks, which developed during the recent strike.
The strike caused an estimated national loss of production of
50,000,000 barrels of refined petroleum producls. Primary
stocks of the four major refined products declined over 33,·
000,000 barrels during the 5·week period ended May 31, a
decrease of roughly 950,000 barrels a day. Normally, refin ed
stocks would have risen appreciably during this period.
The Haltom City Bank, Haltom City, Texas, a newly
organized, insured, nonmember bank, located in the
territory served by the head office of the Federal Reserve
Bank of Dallas, was added to the par list on its opening
date, May 24, 1952. The officers are: E. P. Haltom,
Chairman of the Board; J. Allen Rhodes, President;
H. B. Seale, Executive Vice President ; S. M. Payne,
Assistant Vice President; and Grant Owens, Cashier.
The value of construction contracts
awarded in the Di strict during May
totaled $178,000,000, which is 24 per·
cent greater than in the previous month
and 11 percent above a year ago; a rise in residential awards
more than offset a decline in nonresidential awards. Residen·
tial awards of S93,000,000 were up 88 percenl from April and
were 58 percent over the year·ago figure. In May, residential
awards in the District accounled for 12 perccnl of the United
VALUE OF CONSTRUCTION CONTRACTS AWARDED
(In thousands of dollars)
January-May
May
Area and type
May
April
1952p
1951
1952p
1952p
1951
143,905
49,581
94,324
1,597,517
681,614
915,903
$ 628,824
$ 707.521
6,299,728
2,792,245
3,507,483
7.404,677
ElEVENTH DISTRICT .. $ 177.955
93,294
Re$idential • . .. . ..
84,661
All other .••......
UNITED 51 ATESl .... 1,593,660
Residential •••••••
783,755
All other •........
809,905
160,385
58,9 0 3
101,482
2,572,961
661,094
1,911,867
258,923
369,901
305.04 6
402,475
p_Prellmlnary.
SOURCE, f . W. Dodge Corporation.
BUILDING PERMITS
5 months 1952
Moy
April
Percentage
chonge in
va luation
f rom 5
months
1951
1952
_ _ !:.M~c~y~I~9~52~~M;;-;-A.;;;;- Numbe r
LOUISIANA
Shreveport . •. .
Voluation
Valuation
-38
425 $ 1,285,032
TEXAS
188
Abilene ... ... .
Amarillo ••... .
381
234
Austin ..•.... .
232
Beaumont . ....
Corpus Christi ..
399
1,958
Dallas ....... .
281
EI Paso . ......
Fort Worth . .. . 1,048
Galveston .... .
120
Houston ...... . 1,040
lubbock . .....
270
Port Arthur . •..
299
San Antonio . .. 1,539
360
Waco ....... .
51
Wichita faIl 5.. .
1.825
$ 10, 168.789
31
1,707.660
1,830,261
1,684,015
377,327
1,307,476
12,147,000
865,703
5,628,597
1,029,745
9,030,288
1,583,903
310,720
3,516,958
967,750
1,722,261
543
59
6
- 14
31
95
- 11
45
622
_ 8
18
- 44
25
- 36
352
59
- 35
- 52
- 79
5
31
-3
17
596
_22
_17
- 18
_11
- 42
71
750
1,957
1,301
1,221
1,907
9,275
1,576
4,852
585
4,848
1,4 13
957
6,922
1,775
653
.4,801,349
11,279,000
13,190,374
4,607,6 12
7,036,734
.41,694,470
8,329,707
21,199,112
1,953,207
45,417,472
7,539,938
1,338,949
18,285,747
7,148,681
13,880, 205
33
11
11
55
-38
-14
10
-20
24
-34
- 8
-28
-1 3
Total ........... 8,825 $44,994,696
35
- 7
41,817
$217,871,346
-10
I
While the oil strike was reducing refined slocks, crude oil
stocks were accumulating to reach the highest level in more
lhan a decade. Crude oil stocks in the Nation on May 31, near
the end of the strike, amounted to 288,000,000 barrels. This
rep,"eSents an increase of 23,200,000 barrels over the pre·
strike dale of April 26; the major portion of this gain was in
the Eleventh Federal Reserve District, where stocks rose 17,.
100,000 barrels. As compared with a year earlier, national
stocks at the end of May were up 39,900,000 barrels, with dis·
trict stocks up 26,300,000 barrels.
1951
Percentage
change in
valuation from
Number
Refineries are attempting to increase production in order
to build up the reduced stocks. Nevertheless, since a high
level of refinery oUlput is necessary to meet current demands,
the rebuilding of refined stocks may be extended over a fairly
long period. It is estimated that to regain the 50,000,000 barrels lost during the strike will require an increase in crude •
runs to refinery stills of about 165,000 barrels daily through
the first quarler of next year. The immediate task of the
industry is the maintenance of adequate supplies of gasoline
dllring the heavy consumin g season of the next few months,
but refineries must also make up the loss of home heating
fuels to insure sufficient supplies next winter.
2.778,575
4,626,102
I 37 dotes eost of the Rocky Mountains.
City
On May 31, national stocks of gasoline in primary slorage
were about 17,500,000 barrels, or 12% percent, lower than a
year earlier. Kerosene stocks were do wn over 15 percent, and
distillate, more than 13 percent. Residual fuel oil stocks,
however, showed a decline of only a little over 3 percent as
compared with a year ago. These decreases in stocks were
widely distributed over the Nation.
Indicates change of leu than ane·hclif of 1 percent.
;
288
The unduly high level of crude oil stocks was in Slrumental
in the Texas Railroad Comm ission' s action reducing July oil
allowables. This cut represents the fourth consecutive monthly
reduction in allowables and brings allowables down to the
lowest level since January 1951. Crude oil production in the
Eleventh District, largely reflecting the cut in Texas allow·
ables, has declined nOliceably from the March peak and in
the week ended June 14 was at the lowest rate since March
1951, except for the period of the strike. The daily average
production for that week was 2,987,000 barrels, or about 77,000 barrels below the daily average production of June a
year ago,
4
@FedFRASER