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BUSINESS REVIEW NOVEMBER 1958 Vol. 43, No. 11 ELEVENTH DISTRICT BANKING IN RECESSION AND RECOVERY The close relationship between business developments and banking trends was further demonstrated during the recession and recovery of 1957-58. The impact of the recession that began in the latter part of 1957, along with the monetary and debt management policies designed to cushion recessionary forces, was clearly reflected in changes in bank loans, investments, and deposits. The vigorous and widespread recovery which began in the. spring of 1958 has also influenced banking activity. This article examines banking trends in the Eleventh District between October 1957 and September 1958, a period that began only a month or so after the recession and extends into the recovery period. Growth in Banking Totals Perhaps the most significant banking development in the District during the 12-month period was the establishment of new peaks by most of the major measures of banking activity, despite the fact that the level of economic activity was generally less than in the preceding year. Resources of member banks, which rose to a record level of $10.7 billion on September 24, exceeded the total of October 11, 1957 (the date of the autumn call a year ago) by 7 percent. Particularly noteworthy was the 9-percent increase in loans and investments-one of the largest of record for a 12-month period. In contrast with banks in the Nation, Eleventh District member banks added substantially to both loan and investment portfolios; loans rose $331 million, or 8 percent, and investments increased $328 million, or 11 percent. In the Nation, loans were FEDERAL RESERVE DALl!AS , BANK OF DALbAS TEXAS This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) approximately stable, while investments rose by almost twice the percentage gain in the District. GROWTH IN BANKING TOTALS MEMBER BANKS- ELEVENTH FEDERAL RESERVE DISTRICT AND UNITED STATES The growth of loans and investments found its counterpart, on the liabilities side of the statement, in marked increases in deposits and capital. As District member banks utilized the reserves made available through an expansive monetary policy to add to their earning assets, demand deposits increased $225 million, or 3 percent, and time deposits continued the rapid gain that began in early 1957, rising $452 million, or 27 percent. Member banks added $54 million, or 7 percent, to their capital accounts. This impressive record of banking growth, despite the influence of recession, arose from several factors. These factors - including the minor impact of the recession in the Southwest, the end of a long drought, and the expansive influence of monetary and debt management policies - are discussed below. Loan Demand A general business decline tends to depress banking activity primarily through its impact on loan demand and the accompanying effect on deposits. As economic ,activity subsides, businesses commonly reduce their borrowings from banks, and, in the process, deposits tend to decline. In addition, consumer loan demand is likely to diminish during a recession, as consumers adopt cautious spending policies and attempt to strengthen their financial positions. Other types of bank credit extension, such as loans to finance real-estate or securities transactions, may also be dampened by recessionary forces. Loan trends in the Nation generally followed this traditional pattern during the recession of 1957-58. Loans of all member banks failed to register the usual seasonal expansion in the autumn of 1957 and, after rising temporarily to a peak at the year end, declined substantially in early 1958. As recovery gained momentum in the summer, member bank loans began to increase moderately and, by September, had risen slightly above the year-earlier level. This trend was in sharp contrast with the experience during 1955 and 1956, when loans rose rapidly. Not since the recession of 1953-54 had loans failed to advance substantially during a full 12month period. The impact of the recession on business loan demand in the Nation is emphasized by data relating to the Nation's weekly reporting member banks, which account I~USINESS REVIEW October 1957 - September 1958 LOANS AND INVESTMENTS LOANS AND DISCOUNTS .......••....... j . . .... I ....... ··················:1 U. S. GOVERNMENT SECURITIES OTHER SECURITIES DEMAND DEPOSITS TIME DEPOSITS ELEVENTH DISTRICT UN ITED STATES ······························1 .' ill ·············································l o 10 20 PERCENTAGE INCREASE 30 for about four-fifths of the dollar amount of commercial and industrial loans made by banks throughout the country. Business loans of these banks declined 7 percent between September 1957 and September 1958, in sharp contrast with the 9-percent increase registered in the preceding 12 months. Moreover, the influence of the recession on business loans was even more pronounced than is indicated by the 7-percent decline in the past 12 months, inasmuch as these loans have in. creased moderately - mainly as a result of seasonal factors - since midyear. Loan demand in the Eleventh District, in contrast, actually strengthened during the recession, with loans advancing at each of the intervening calls between October 1957 and September 1958. All major categories of loans participated in the net increase during the 12 months, with business loans accounting for 41 percent of the gain and agricultural and real-estate loans for about 20 percent each. The growth in loans during the past year was more than 21/2 times the increase in the preceding 12 months. The expansion of $134 million, or almost 7 percent, in commercial and industrial loans of District member banks resulted primarily from the relatively minor impact of the recession in the Southwest, coupled with developments in the petroleum industry which tended to increase loan demand. The recession was concentrated in industrial activity, and the economy of the Southwest, although adding substantially to industrial potential in the postwar years, is much more diversified than that of most industrial areas in the North and East. CHANGES IN LOANS OF MEMBER BANKS Eleve nth Federal Re se rve District (Dollar amount s in thou sond s) Sept. 24, 1958, from Oct. 11, 1957 Type of loon Oct. 11, 1957, from Sept. 26, 1956 Amount Percent Amount Comm ercial and industrial loans ... .. Agricultu ral loons..... . . .... . .... . Real -estato loons..... ............ Consum er loon s . .. • . ..•....•...•. Loan s for purchasing or carrying $ 134,420 65,344 65,756 24,514 6.5 21.9 17.1 2.6 $ 59,822 -18,158 -19,076 72,684 3.0 -5.7 -4.7 8.3 securiti es.•. • • • ...• .. •• .• •••..• All other loons ............... .... 25,543 10,185 5,051 12. 1 89.1 3.3 16,791 4,858 7,163 8.7 73.9 5.0 LOANS AND DiSCOUNTS ..... $330,813 8.1 $124,084 3.1 loons to bonks ....... ............ Percent Consequently, the 13-percent decline in industrial production in the Nation between August 1957 and April 1958, while of some significance in the Southwest, had much less effect on the level of business activity and on loan demand in the region. Levels of unemployment ruled substantially lower than in the Nation, and other measures of business activity reflected greater strength than prevailed elsewhere. Developments in the petroleum industry also added to loan demand. Petroleum activity in 1958 declined to the lowest level in several years, not so much as a result of the recession but mainly because of adjustment to international developments in the industry. As the petroleum situation deteriorated in the winter and spring of 1958, wells in Texas were reduced to a production schedule of 8 days per month, compared with a range of 12 to 18 days in 1957. The sharply diminished allowables tended to depress refining and drilling activity and no doubt lowered the demand for bank credit. On the other hand, the reduction in allowables stimulated the sale of property by some producers who were confronted with a decrease in their cash inflows. The increase in bank loans to finance such transfers more than offset the decline from reduced petroleum activity. Consequently, loans of District weekly reporting member banks to the petroleum industry increased almost 9 percent in the 12 months ended in September 1958. Agricultural developments also bolstered loan demand in the District; loans to farmers by District member banks advanced $65 million, or almost 22 percent. The end of a severe and extended drought in 1957 and the continuation of satisfactory moisture conditions in 1958 contributed to the most favorable agricultural situation, from the standpoint of production, in a number of years. In addition, higher prices for some commodities, particularly livestock, bolstered agricultural income. The improved situation increased the willing- ness and ability of farmers to borrow in order to purchase and repair equipment and to expand operations, as well as the willingness of banks to meet these credit demands. Demand for real-estate credit at District member banks, although well maintained during the recession, has been especially strong in recent months; threefourths of the increase registered in the past 12 months has occurred since March. Construction loans at weekly reporting member banks followed a similar pattern. These trends reflect the rising level of construction activity in the Southwest since this spring, particularly with respect to residential building. A major factor contributing to the revival of residential construction was the increased availability of mortgage funds, which resulted partly from the emergency mortgage purchasing program of the Federal National Mortgage Association and partly from the general easing of credit conditions. Other loan developments at District member banks included a moderate (less than 3-percent) gain in consumer loans - contrasted with an increase of more than 8 percent in the year-earlier period - and a 12percent expansion in securities loans, reflecting in part the increased level of activity in the stock market. Loan trends at District member banks during the past year can be summarized as reflecting the generally satisfactory level of business activity that prevailed, coupled with the special situation in the petroleum industry, the improved agricultural situation, and the rising level of construction activity. District banks continue to report a strong loan demand, as would be expected in SELECTED LOAN ACCOUNTS MEMBER BANKS - ELEVENTH FEDERAL RESERVE DISTRICT BILLI ONS OF DOLLAR S BILLION S OF DOLLARS 3 3 I I I I I COMMERCIAL AND INDU STRIAL LOAN~~ ~ I 2 CON.SUMER LOANS I~ _ _ _ _ ~~--- - - ___ - - - I I I ...I~ ........ .............I .................... lEAL- ES1TATE L L s o oI C.31 1956 I Mor,14 Jun,S 1957 OcUl AGRICULTUR AL LOANS Otc.SI Mor. 4 Jun,Z:5 SepL2.4 o Dec.SI 195B BUSINESS REVIE~1 view of the vigor of the recovery movement and the prospects for further growth in the Southwest. Influence of Monetary and Debt Management Policies Even though national developments are exerting a growing influence on loan activities of District banks, trends in loan accounts of banks in the Southwest respond principally to regional developments; foremost in the banker's mind is the need for accommodating all worthy credit demands of his local customers. Investment activity, on the other hand, responds significantly to the influence of national monetary and debt management policies. Perspective concerning the investment activity of District banks during the past year can be gained only by first reviewing the nature of these policies in recent months. The recession that began in the late summer of 1957 marked the end of 3 years of high and generally rising levels of business activity. Early in 1955 - as the boom gained momentum - shortages of labor, material, and equipment, in the face of strongly rising demand for goods and services, began to exert pressure on costs and prices. Federal Reserve policy, accordingly, was directed toward restraint, as reflected in a conservative open market policy and increases in Reserve bank discount rates. By the time the boom came to an end in 1957, discount rates had been increased seven times, the availability of new credit had been curtailed, and interest rates- responding to the forces of demand and supply-had risen to the highest levels since the 1930's. In the autumn of 1957, when it became clear that recession was developing, monetary policy was shifted from restraint to ease. In October the System began to move gradually away from restraint by easing pressures on bank reserves. In mid-November, four Reserve banks reduced their discount rates by one-half point. As is shown in the accompanying chart, the effect of this action on the bond market was dramatic; yields declined sharply-prices rose-as investors became convinced almost overnight that the outlook was for lower rather than higher, levels of interest rates in coming Iponths. Rates on new issues of Treasury bills, which had risen to an average of 3.59 percent in October, declined rapidly in ensuing months and averaged less than 1 percent in June and July 1958. Average yields on long-term Government bonds backed away from the 3.73-percent average of October, declining to a low of 3.12 percent in April 1958. I:USINESS REVIEW Although the initial yield declines reflected primarily a shift in expectations arising from the reduction in discount rates, this reduction was followed by aggressive System actions to ease credit. By the end of April, discount rates had been reduced four times, from 3112 percent to 1% percent, and member bank reserve requirements had been lowered three times, releasing about $1. 5 billion in reserve funds to the banking system. Moreover, System open market policy served to ease reserve positions further. As a result of these moves toward monetary ease, member banks in the District and the Nation found that, for the first time in several years, they had ample funds to meet all worthy loan demands and, in addition, to add substantially to investments. One indicator of reserve availability is the level of "free reserves" or "net borrowed reserves," which refer to the net relationship between excess reserves of member banks and their indebtedness to Reserve banks. Generally speaking, a large volume of free reserves (excess reserves greater than indebtedness to the Reserve banks) indicates monetary ease. High levels of net borrowed reserves (borrowings from the Reserve banks greater than excess reserves) reflect monetary restraint. As the System moved to promote easier credit conditions, banks obtained funds to reduce their indebtedness to the Reserve banks and to build up their excess reserves. Consequently, the net borrowed reserves that had prevailed in the Nation during most of 1957, ranging above $500 million at times, were eliminated by the INT EREST RATES (Monlhly Averao .. ) ;¥ E R~C E~NT~PE~ R~AN~NU~M_ _ _- ,_ __ _ ~P~ER~CE~NT~P~ E R~AN~NU~ . --------~3 2'~-------+- \- ~ __~ TREASURY BILLS---" •• •• I-- - -- - - - I - - - - . :..:.:.: .....~.:.---I 2 FREE RESERVES MEMBER BANKS - ELEVENTH FEDERAL RESERVE 01 STRICT (M onlhl1 Av.rao .. ) MIL. L.I ONS OF COLLAR S +70 MILL-ION S OF DOLLARS +70 ~------------~----=----- & ---~+60 +50 - - - - - - - --1+4 o ~-------------l---------------~ +30 ~------------~--------------~+20 """-- - - - 1 +10 r-------------~,-------------~O . , .,...- - - - - - - - - - - - - ---1- 10 end of the year. In January, free reserves emerged and, by April, were averaging close to $500 million. Free reserves of District member banks followed a similar pattern. As is shown in the above chart, reserve city banks in the District experienced net borrowed reserves throughout all of 1957 but moved to net free positions in January 1958. Free reserves of country banks, after declining to relatively low levels in the autumn of 1957, rose rapidly in subsequent months. The ample availability of reserves induced banks in the District and the Nation to purchase large amounts of Govermnent and other securities. In the Nation, the decline in loan demand, coupled with lower rates on loans, exerted pressure on bank earnings. For this and other reasons, banks purchased Government and other securities. Even though loans at District banks actually rose during the recession, the banks were eager to obtain securities in order to protect earnings while acquiring assets with a high degree of safety and liquidity. As noted above, District member banks increased their investments by 11 percent in the 12 months ended in September. Government securities accounted for almost two-thirds of the increase. Treasury debt management policies during the recession facilitated the expansion in bank holdings of Governments. Banks were particularly interested in acquiring Government securities of intermediate maturity; such issues normally carry higher interest returns than securities of shorter maturity. The Treasury was therefore able to pursue its policy of lengthening the ma- turity of the debt, while promoting growth in bank credit during the recession, by offering securities of intermediate range that were especially attractive to banks. In its cash and refunding operations during the first half of 1958, the Treasury offered, among other securities, $16.7 billion of issues maturing in 4 to 8 years. In the initial distribution of these issues, banks in the Nation obtained $10 billion, and banks in the District were allotted $390 million. The extent to which District member banks acquired intermediate-term securities during the past year is indicated also by the fact that holdings of Govermnent obligations maturing within 5 to 10 years increased almost 43 percent. As a result of these purchases, holdings of Govermnents in the 5- to 10-year range rose from 11 percent of total holdings in October 1957 to 15 percent in September 1958. Government obligations maturing within 5 years declined from 82 percent to 76 percent of total holdings. In summary, monetary and debt management policies during the recession promoted a significant growth in bank credit by encouraging bank purchases of Government and other securities. Because of the strength of loan demand in the District, however, investment expansion was considerably less, percentagewise, than in the Nation. Moreover, it is important to note that these policies, by promoting a substantial increase in bank credit, resulted in growth of bank deposits and the money supply. The expansion in the money supply cushioned recessionary forces and minimized the danger of a cumulative decline in business activity. MATURITY DISTRIBUTION OF U.S. GOVERNMENT SECURITIES MEMBER BANKS - ELEVE NTH FEDERAL RESERVE DISTRICT ~N';",• • • October 11,19 5 7, and Se pt emb er 24 , 1958 OVE R 10 YEARS 5-10 YEARS ------ WITHIN 5 YEARS 195B BUSINESS REVIE:I Growth of Deposits The 8-percent expansion in total deposits of District member banks during the 12-month period, while about the same as in the Nation, was much more heavily concentrated in time deposits than demand deposits. Demand accounts advanced 3 percent, while time deposits increased 27 percent; increases in the Nation were 3 percent and 16 percent, respectively. Indeed, if it had not been for developments in the petroleum industry in 1957 and 1958, which resulted mainly from events not directly related to the recession, few signs of declining activity would have been evident in the Eleventh District. This conclusion is, of course, significant to District banks, which are not likely to experience the wide swings in loan demand that are characteristic of the more highly industrialized areas of the country. The sharp growth in time accounts in both the DisSecondly, experience in the recessions of 1953-54 trict and the Nation, while perhaps reflecting in part a genuine increase in individual savings, probably re- and 1957-58 indicates that bank credit and deposits are sulted mainly from the rates of return on such deposits likely to grow most rapidly during recessions, not in as compared with yields on Treasury bills and other periods of rising and high-level business activity. This high-quality, short-dated investments. Bank rates on tendency is based upon the assumption that monetary savings accounts, certificates of deposit, and other time and debt management policies would continue to be accounts - which had generally been raised in 1957 directed toward cushioning recessionary pressures, once - did not decline as rapidly as yields on money market they emerge. Under such conditions, banks may obtain instruments in late 1957 and early 1958. Consequently, increased availability of reserves, which could be used business corporations and other investors transferred to purchase Government and other securities. A decline large amounts of funds into time accounts and certifi- in bank assets resulting from a decrease in loan demand might be offset by expansion of investments. During a cates of deposit in order to obtain a higher return. boom, on the other hand, expansion in total bank credit The large percentage growth of time deposits in the may be limited by restrictive monetary policies, even District, as compared with the Nation, probably re- though loans may rise. flected somewhat higher rates on certificates of deposit Finally, experience in the recession of 1957-58 lends at major southwestern banks than at banks in the North and East. Moreover, the percentage growth in District further support to the judgment that an easy monetary time deposits was magnified by the relatively small pro- policy furnishes a powerful expansive force which tends portion of time deposits to total deposits at District to cushion recessionary pressures and provide an atbanks. As of October 11, 1957, time deposits accounted mosphere conducive to recovery. In the case of an infor only slightly more than 18 percent of total deposits; ventory recession, expansive monetary policies increase the proportion in the Nation was about 40 percent. the probability that liquidation can be effected in an By the time of the September 1958 call, however, time orderly manner. Many of the stresses and strains that deposits at District banks had risen to almost 22 percent characterized pre-World War II recessions, in which disof total deposits. orderly inventory liquidation proved troublesome, can be avoided. Moreover, an expansive monetary policy Conclusions assures that banks will have adequate funds to meet all Three important conclusions can be drawn from worthy demands for loans. Perhaps most importantly, banking developments in the District and the Nation an expansive policy, coupled with debt management during the recession and recovery of 1957-58. In the policies that provide securities attractive to commercial first place, experience in the District demonstrates that, banks, promotes growth in bank credit and the money in an economy as large and diversified as that of the supply, which, in turn, increases liquidity in the econUnited States, relatively mild and short-lived recessions omy. As long as confidence remains unimpaired and are not likely to exert equal effects throughout the coun- the basic forces of demand are strong, the increase in try. The three postwar recessions - occurring in 1948- money supply and liquidity enhances the prospects for 49, 1953-54, and 1957-58 - have been dominated by early recovery. relatively large shifts in business inventory policies and by reduced activity in durable goods production. Consequently, an area that concentrates less heavily in such production may experience only a minor adjustment. B U SINESS REVIEW 6 CHARLS E. WALKER Vice President and Economic Adviser BUSINESS REVIEW BUSINESS, AGRICULTURAL, AND FINANCIAL CONDITIONS Business loans at weekly reporting member banks in the Eleventh District showed continued strength between mid-September and mid-October, and construction loans were particularly strong. In spite of a 4-week decline, deposits remained substantially above the year-earlier level. Seasonally adjusted department store sales during September in the District were down from the record high in August but were equal to a year ago. Inventories at the end of the month remained lower than in September 1957, but there was a marked increase in new orders, boosting total orders outstanding above the year-earlier level for the first time in 12 months. Harvesting has been delayed as a result of adverse weather. Fall-seeded small grains are making excellent development, but conditions have been unfavorable for commercial vegetables. The Texas citrus fruit crop is expected to be larger than last year's September department store sales in the Eleventh Federal Reserve District, seasonally adjusted, receded from the record August level but were equal to sales a year ago. The seasonally adjusted sales index was 162 percent of the 1947-49 average in September, compared with 172 in August and 162 in September 1957. The September dollar volume was up 4 percent from the same month last year but was 3 percent below the preceding month. Most of the increase over September 1957 was accounted for by the one additional trading day this year. During the first 2 weeks in October, sales were 11 percent above the same period a year earlier, but cumulative sales through October 11 were still 1 percent under the comparable 1957 period. Reports from a selected group of District stores on September sales in the various departments indicate production, but that for the District will be smaller. Ranges and pastures are in excellent condition. Industrial production in the District registered advances during September, with gains reported in both mining and manufacturing activity. Construction contract awards in the District states reflected continued strength during August, and September awards in Texas were above the August level. Nonagricultural employment in the District states rose during September, led by increases in education and trade. Available data for Texas show a decrease in unemployment and an increase to a new record in average weekly earnings of factory workers during the month. An improved refined products stock picture and rather persistent widespread cuts in crude oil prices were the principal changes in the petroleum industry during October. Substantial increases in crude oil imports contrasted with reductions in domestic production. gains of 6 to 8 percent over a year ago in sales of major household appliances, silverware and jewelry, and women's and misses' dresses. Smaller increases were registered in other departments, with sales of women's and misses' accessories up 2 percent and sales of men's clothing and radios, phonographs, and television sets DEPARTMENT STORE SALES AND STOCKS (Percentage change In retail valu e) STOCKS (End of month) NET SALES Se ptembe r 1958 from Septemb er 1958 from -~---- 9 mos. 1958 - - - -Septemb er Are a August Se ptembe r comp o with 1958 1957 9 mos. 1957 Total Eleventh District. . . . . Corpus Christl....... .. ... Dallas..... . ... .... ... . . EI Paso. ... . ...... . . .... Fort Worth.... . ......... -3 -18 4 0 -2 4 -1 2 13 Houston. • • • •• • • • • • • • • • • 1 -1 San Antonio. .. . . . . .. . . . . Shreve port, la.. . . . . . . . . . Waco......... ... . .. . .. Othe r cities. . . • . . . . . . . . . - 8 -6 -2 - 9 -1 2 6 10 4 -2 -5 1 4 o -8 1 -6 -7 2 BUSINESS August 1958 1957 7 8 9 2 11 12 1 5 8 1 REVIE~ -5 -6 -3 2 -7 - 8 -3 - 5 -9 -3 I INDEXES OF DEPARTMENT STORE SALES AND STOCKS Eleventh Federal Reserve District (1947·49 = 100) SALES (Da ily averag e ) Date Unadjuste d Sea sonally adjuste d 1957: Septe mbe r . • . • 1958: July . . • . . • • . • • August.... . . .. Septemb er. • . . 156r 144 160 156 162r 162 172 162 STOCKS (End of month) Unodjuste d Sea sonally adjuste d 183r 155 163 175p 173r 163 163 165p Revi sed. r p - Preliminary. up fractionally. Year-to-year decreases of 3 percent and 8 percent, respectively, occurred during the month in sales of women's and misses' coats and suits and furniture and bedding. Inventories at District department stores at the end of September were 5 percent below a year earlier but were up 7 percent from August, or slightly more than the usual seasonal rise. New orders for merchandise placed by the stores during September were up substantially from August and were 19 percent above September 1957. This marks the first time since January that new orders placed during a month have exceeded those placed during the same month a year ago. As a result of the heavier volume of new orders, total orders outstanding at the end of September were more than a year earlier for the first time since September 1957. This information indicates that departrrient stores are rebuilding inventories in anticipation of rising sales. New car registrations in the four largest metropolitan areas in the District declined further in September to the lowest level this year. Total registrations in the four areas were 13 percent below the preceding month and 38 percent below a year ago. conditions. Drilling of remaining winter small grains is being rushed to completion in northwestern sections of the District as soils dry. Surface and subsoil moisture supplies generally are favorable for small grains. Cotton harvest has been delayed, and the bulk of the crop from Lubbock northward remains in the field. Excessive moisture, especially in the Southern High Plains, has resulted in considerable regrowth of cotton stalks; efforts at defoliating the stalks continue over a wide area. Picking is near completion in the Brazos River bottom, Texas; and mechanical strippers have virtually finished harvesting the crop in northern Blacklands sections. In the irrigated regions of the TransPecos area of Texas and in New Mexico and Arizona, harvesting has made slow progress, and excessive moisture has damaged grades of cotton. The cotton crop in the District states is placed, as of October 1, at 5,845,000 bales, or slightly below the month-earlier forecast but 12 percent above the output in 1957. In Texas, production is placed at 4,100,000 bales, or about 100,000 bales fewer than indicated a month ago but 13 percent larger than the outturn last year. Combining of grain sorghums is nearing completion in the northern Low Rolling Plains and the central High Plains of Texas and is past the peak in northern sections of the High Plains in Texas and New Mexico. Grain sorghum production in the District states is placed at 306,224,000 bushels, or 14 percent above last year's record crop. Peanut digging is well advanced in all late areas, and combining of the crop is getting under way as weather permits. The peanut crop in the District states is estimated to be 59 percent larger than that in 1957. The Harvesting of the excellent crops much-delayed rice harvest is drawing to a close in Louin most sections of the District isiana and Texas. Rice output, although below estimates made halting progress during the earlier in the season, is indicated to be 9 percent above past month as a result of unfavor- the 1957 outturn. able weather. A series of weak Losses of fall and winter vegetable crops have occool fronts brought widespread precipitation to virtually in south Texas areas as a result of heavy rains. curred every section of the District. Rainfall was the heaviest Field work has been delayed, and many crops on high in south and southeastern sections, particularly in the ground are in need of cultivation. Clear, open weather Lower Valley of Texas, where heavy rains swelled the runoff of the flooding Rio Grande River. Proportion- is needed urgently so that crops can be worked and ally, the heaviest damage by the floodwaters occurred planting can be resumed. The citrus fruit crop in Texas in the low-lying areas on the Mexican side of the border. is estimated to be moderately higher tllan that of the previous season, but citrus output in Arizona and LouWheat, oats, and barley sown in early areas made isiana is estimated to be below a year earlier. The output excellent development as a result of favorable moisture of oranges and grapefruit in Texas is placed at 15 per- I :USINESS REVIEW CROP PRODUCTION CONDITION STATISTICS OF WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES Texas and Five Sauthwestern States Eleventh Federal Reserve District (In thousands of bushels) (In thousands of dollars)' TEXAS Crap Cotton' • . •..... . Corn • •••••••••• Winter wheat • ••• Oats .••.. .•.•. . 8arley ••••.. . .• Rye • •• •.• .....• Rice s• • •• ••• •••• Sorghum grain ••• Flaxseed. . . • • • • Hay'........... Pea nuts' • .. •.. .. Irish potatoes 6 • • • Sweet rOfolcesll .• Pecans •• • ••.•• • 1 Estimated October 1, 1958 1957 4,100 44,720 77,441 43,552 8,694 270 12,160 275,614 360 2,535 250,325 2,148 1,386 38,000 3,632 40,020 33,669 35,260 5,481 180 11,104 238,095 126 2,316 159,840 1,6 30 1,200 55,000 FIVE SOUTHWESTERN STATES' Estimated October 1, 1958 1947-56 Avorage 3,937 41,525 43,687 23,852 1,892 240 12,863 96,256 827 1,690 213,524 ' 1,498 ' 1,370 31,640 5,845 73,925 200,039 67,640 33,162 2,175 23,696 306,224 385 6,667 409,225 5,390 6,272 74,800 1957 1947-56 5,242 61,440 81,912 53,558 23,711 1,255 21,704 267,742 164 6,047 256,640 4,495 6,146 108,500 5,906 72,283 118,313 39,918 12,241 817 25,133 113,676 1,146 5,04 1 324,617 ' 3,424 '6,4 85 69,624 Arizona, Louisiana , New Mexico, Oklahoma, and Texa s. In thou sands of bales. a In thou sands of bags conta ining 100 pounds each. II In thousands of tons . :! ti In thousonds of pounds. o In thousands of hundredweight. 7 Average, 1949.56. SOURCE, United 'States Department of Agriculture. cent and 20 percent, respectively, larger than in the preceding season. Ranges and pastures remain in excellent condition, and favorable moisture conditions are promoting the development of lush volunteer and early seeded small grain forage. All classes of livestock are in excellent condition. Loan accounts at weekly reporting member banks in the District continued to expand during the 4 weeks ended October 15, influenced mainly by the growing credit demands of commercial and industrial borrowers. The demand for business loans this fall has consistently exceeded that of a year ago; and, to a large extent, the added strength has occurred in construction loans, paralleling the increased activity in residential building. In the manufacturing and mining categories, the largest increases have occurred in the borrowings of petroleum finns and metals and metal products concerns. Reflecting these advances, as well as approximately seasonal gains in other business loan categories, total business loans rose $29.5 million during the 4 weeks ended October 15 - in contrast to a decline of $13.6 million during the comparable period a year ago. Real-estate loans and agricultural loans showed moderate declines during the 4-week period, following several months of persistent week-to-week gains. Consumer-type loans, which have moved irregularly higher during the past several months, also declined. Sept. 17, 1958 Oct. 15, 1958 Item Average Oct. 16, 1957 ASSETS Commercial and industrial loans ••••.• • • ...••• $1,600,835 $1,571,296 $1,474,634 41,214 23,836 36,499 Agricultural loans •• •••••••••• ••••••• ••••••• 17,394 20,352 loans to brokers and deal ers in securities •.••.• 19,534 182,343 160,110 Other loan s for purchasing or carrying securities. 183,152 231,429 191,459 Re al- es tate loans ••.•.•...•.•••.•...••.•..• 22a.o 13 25,593 18,939 loans to banks • •••••..••..••..•••• • •...• • • 20,386 All other loans ...........• . ............... 636,885 642,039 628,927 Gross loan s •. . •••..••.•.••....•••..•••• less reserves and unallocate d charge-offs •• 2,725,304 45.862 2,707.612 45,818 2,521,953 42,984 2,679.442 2,661,794 118,553 188,970 279.896 924,470 319,832 69,433 199,877 269.04 1 924,367 323,127 Net loa ns .•••. . ...•..••••..... . •......• U. S. Treasury bills .•. ....... ... ............ U. S. Treasury certificates of ind e btedn ess ••••.• U. S. Treasury notes ••••••.• • •.• •.••••.•••.• U. S. Government bonds (inc. gtd. obligations) ... Other securities • ••• •.•••••.•••.••••••..•.. Total investments ••...• ••.••• .•••. •••• ••• Cash items In process of collection ••.•••.•• • . • Ba lances with banks in the Unite d States •••••. • Balances with banks in foreign countries ••••• .• Currency and coin •••.•••.•.••••.. •.• • •. ••• Reserves with Federa l Reserve Bank ••••.•• •••• Oth er a sso ts •••..•.•••••..•••....•••.• • ••• TOTAL ASSETS •.•.....•..... ..... ..• . --- --- -1,785,845 --- 2,478,969 --84,703 120,350 212,879 815,984 281,103 480.907 543,247 1,444 49,220 576,190 175,892 1,515,019 439,754 455,429 1,274 47,422 583,696 172,573 6,249,541 6,274,539 5,694,136 2,937,353 149,014 131,702 1,026,223 15,361 57,609 2,931,438 69,283 143,661 1,127,875 15,924 68,917 2,815,545 99,501 154,191 956,027 17,499 56,327 4,357,098 4,099,090 1,073,360 7,455 421 221,291 7,070 804,442 12,421 421 198,549 6,735 34,250 82,927 490,667 5,121,658 27,700 89,349 455,429 6,274,539 5,694,136 1,831,721 464,615 475,328 2,586 46,958 570,918 177,973 LlA81L1T1ES AND CAPITAL Demand deposits Individual s, partnerships, and corporations •••• United States Governm e nt •.•• ••. .•••••••• States and political subdivisions •..•••.••• •• Banks in the United States ....... ...... ... . Banks in foreign countries •••••. •••..• • •••• Certifled and offlcers' checks, etc . ••• •••• •. • Total demand deposits • • .•.•• . ... ...•.. Time deposits Ind ividua ls, partnerships, and corporations •••• United Sta tes Governm e nt .•••• ••• ..• •••• • Postal savings ••• •• ..••• ••. . .• • ••••.•••• States and political subdivisions •••.••..•••. Banks in the U. S. and for eig n countries • ••••• --4,317,262 --1,075,815 7,455 421 221,468 8,185 Total time deposits •••.••....••.••••••• 1,313,344 Total deposits •.•••.• •••.•••.• ••••.. Bills payable, rediscounts, e tc .•• ••..•••...••• 5,630,606 42,000 85,055 491,880 All olher lIabUllies ..•••...•...............• Total capital accounts •••.•• •••••••• •••••.•• TOTAL LlA81L1T1ES AND CAPITAL. ........ -6,249,541 -1,309,597 -5,666,695 1,022,568 CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS (In thousands of dollars)' Item Oct. 15, 1958 Total gold certiflcate reserves ••••.••••••.••• $ 711,672 23,650 Discounts for member banks •••.••..•••.•••• Other discounts and advances ••••.•••.•••. • 36 U. S. Government securities •••.•••••••..••.• 994,135 Total earning asse ts •••••...•••.• •••• • •.•.• 1,017,821 Member bank reserve deposits •. ••••.•.••••• 946,954 Federal Reserve notes in actual circulation ••••• 758,382 Sept. 17, 1958 Oct. 16, 1957 $741,684 6,150 $799,414 25,257 338 911,510 937,105 979,893 718,400 o 975,940 982,090 966,613 752,772 Although reporting banks liquidated investments on a moderate scale during late September and most of early October, investment accounts rose sharply near the end of the period as the Treasury's recent cash offering of $1.2 billion in Treasury notes and $2.7 billion III special 219-day Treasury bills brought a favorable BUSINESS REVIEW 9 I response from Eleventh District investors. Subscribers in the District were allotted $52.5 million of the 3 1/2percent notes and $149.3 million of the special bills. ended October 15. On that date, demand deposits at the reporting banks were 5.3 percent above the yearearlier level, while time deposits were 28.4 percent higher. Bank credits to Tax and Loan Accounts in payment Earning assets of the Federal Reserve Bank of Dallas for the new Treasury securities produced an expansive influence on total deposits, but the deposit increase from increased $35.7 million during the 4 weeks ended Octothis source failed to offset a relatively sharp decline in ber 15. The Bank's holdings of Government securities interbank balances. Consequently, total deposits at the expanded as the System made net purchases in the open weekly reporting banks declined during the 4 weeks market, and this increase was almost matched by a rise in discounts for member banks. NEW MEMBER BANK The First National Bank of Fort Stockton, Fort Stockton, Texas, a newly organized institution located in the territory served by the EI Paso Branch of the Federal Reserve Bank of Dallas, opened for business October 1, 1958, as a member of the Federal Reserve System. The new bank has capital of $125,000, surplus of $75,000, and undivided profits of $50,000. The officers are: R. D. McDonald, Chairman of the Board; Tom H. Stovell, President and Cashier; Fred Chandler, Jr., Vice President; Conoly Brooks, Vice President; and A. J. Broyles, Vice President. NEW PAR BANKS The East Dallas Bank & Trust Company, Dallas, Texas, an 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, October 1, 1958. The officers are: E. M. Bruhns, President; R. V. Stephens, Vice President; and H. L. Kirkpatrick, Vice President and Cashier. The Commercial State Bank, Garrison, Texas, an insured, nonmember bank located in the territory served by the Houston Branch of the Federal Reserve Bank of Dallas, was added to the Par List on October 1, 1958. The officers are: George W. Tinkle, Chairman of the Board; N. H. Jarrett, President; G. W. Young, Vice President; James S. Taylor, Vice President and Cashier; and Mrs. Maxine H. Williams, Assistant Cashier. The Park Cities Bank and Trust Company, Dallas, Texas, an 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, October 14, 1958. The officers are: Chevus M. Chapman, President; W. R. Garr, Vice President and Cashier; and Mrs. Anna Belle Collier, Assistant Cashier. The First State Bank, Clute, Texas, a nonmember bank located in the territory served by the Houston Branch of the Federal Reserve Bank of Dallas, was added to the Par List on its opening date, October 16, 1958. The officers are: J. T. Suggs, President; Allen J. Verdine, Jr., Executive Vice President and Cashier; and Fred A. Palmer, Jr., Vice President. I BUSINESS REVIEW 10 Effective October 16, stock margin requirements were increased from 70 percent to 90 percent by the Board of Governors of the Federal Reserve System. The present requirement is the highest in effect since 1947. Effective October 24, the Federal Reserve Bank of Dallas and four other Federal Reserve banks raised their discount rates from 2 percent to 2112 percent. Two important trends developed during October in the Nation's petroleum industry. A new round of price cuts for crude oil, particularly in the Southwest, and a marked improvement in the current relationships of refined products stocks were evident throughout the month. Despite forecasts of sharply improved demand for the coming year, the industry still faced persistent downward price pressures on both crude oil and certain refined products. October supplies of crude oil were generally higher, as a sharp rise in imports more than offset the cutbacks in domestic production. Crude oil imports in the 5 weeks ended October 17 rose 24 percent above the previous period, although the total was still 4 percent under a year earlier. In contrast to the recent increase in imports, October crude oil production in the Nation was down 2 percent from September, and District production, at 3,071,000 barrels per day, was down 5 percent. Although crude oil stocks rose slightly in recent weeks, the October 18 total of 254,031,000 barrels was well below a year earlier; and with the improved picture in products stocks, regulatory agencies in the principal states were encouraged to maintain a fairly consistent pattern of production allowables. The Texas Railroad Commission has ordered a continuation of the II-day producing schedule for November, which will bring a small increase in production because of the shorter month. Likewise, Louisiana and New Mexico regulatory authorities have held allowables near their October levels. Refinery activity during October showed a slight divergence between the District and the Nation. At 2,204,000 barrels per day, District runs averaged 1 percent higher than in September, while refinery runs in the Nation declined 1 percent. In general, the pattern of demand for the principal refined products was mainly seasonal, with distillate and kerosene demand sharply higher and gasoline demand moderately lower. Residual fuel oil demand also rose seasonally, although the general improvement in industrial production throughout the Nation may have added some strength. On the other hand, refined products stocks showed a small increase during early October but on October 17 were 4 percent below a year ago. This small change in total products stocks, however, conceals some improvement between the inventories of individual products and the total demand for those products. Gasoline stocks were reduced 2 percent from the September level and on October 17 were 5 percent less than on the comparable date last year. Similar improvement was shown in residual fuel oil stocks, which declined an equal amount from September but were still 16 percent above a year ago. Kerosene and distillate stocks, however, showed further gains in recent weeks, partly as a result of the increased refined products imports. In the 5 weeks ended October 17, such imports were 3 percent higher than in the previous 5 weeks and were 37 percent above a year earlier. Industrial production in the District apparently registered a larger than seasonal gain during September. In addition to a substantial increase in crude oil production, there were reports of greater activity in copper and potash mining. Electric power production in the area corresponding approximately to the District increased to a level which was 12 percent above a year earlier, an improvement over the year-to-year gain of 8 percent during August. Total manufacturing employment in the District states rose for the second consecutive month, reflecting a greater than seasonal advance. Furthermore, available data for Texas show that average hours worked in manufacturing increased 0.5 hour to 41.5 hours per week during September, and total manufacturing man-hours in the State rose about 1.5 percent - or more than seasonally - over the August level. During early October, there were mixed trends in District industrial activity. While declines occurred in oil production and electric power output, the continued stability in refining reflected a seasonally adjusted gain, lumber production appeared to be rising, and a number of other production indicators pointed upward. The demand for metals continued to improve, and there was evidence of increased activity in primary metals manufacturing. Near mid-October, the major east Texas steel producer placed back in operation two open-hearth furnaces which had been idle since August 3. The company indicated that expected increases in oil field activity during the fourth quarter and currently low inventories of certain sizes of pipe were the reasons for this action. In addition, an aluminum company scheduled the restarting, on October 15, of an idle potline at its Point Comfort, Texas, smelter; and another aluminum company planned to increase production at its plant near Corpus Christi, Texas. The total value of construction contracts awarded in the District states during August, while down seasonally from July, reflected a 56-percent increase over a year earlier. Residential and "all other" construction shared about equally in the year-to-year gain. In September, Texas construction awards were up 31 percent from August and 12 percent from a year ago, according to the Texas Contractor. Highways and industrial buildings accounted for most of the State's August-September gain. Confirming scattered reports of increases in the cost of mortgage credit, the Federal Housing Administration reported that the average secondary market price of typical FHA 51;4 -percent home mortgages in the Southwest declined 90 cents to $97.90 per $100 par value during September. Also, interest rates on conventional mortgages rose in the region to an estimated average of 5.75 percent on October 1, compared with an average of 5.65 percent during the summer. Total nonagricultural employment in the District states increased to 4,281,600 during September, which reflects a gain of 15,600 workers over August. Education and trade accounted for most of the increase, while construction - influenced by seasonal factors and labor-management disputes - showed the largest employment decline. Unemployment in Texas decreased 4,100 workers to 180,600 in September; however, unemployment was still 5.1 percent of the labor force, compared with 4.2 percent a year earlier. The volume of claims for unemployment compensation indicated a further moderate decline in the State's jobless total by mid-October. BUSINESS REVIEW 11 BANK DEBITS, END-Of-MONTH DEPOSITS AND ANNUAL RATE Of TURNOV,ER Of DEPOSITS BUILDING PERMITS VALUATION (Dollar amounts in thousand.) (Dollar amoun ts in thou sands) Percentage change De bits to d e mand deposit accounts1 Sept. 1958 De mand deposlts 1 NUM8ER Percentag e Annual rate of turnover chang e from Septe mber 1958 Are a Aug. Se pt. 1958 1957 ARI ZONA Tucson ••••.. • • • ••••• $ 187,970 LOUISIANA 76,365 Monro e ••• Shre ve port ••.••.••.• 286,589 NEW MEXICO Roswe ll ••. • •.. • .••• • 31,928 TEXAS Abilene .... . . ....... 89,034 Amarillo •• • ••••• •• •• 196,288 198,484 Austin ••• •• • • • • • •• • • Beaumont ••• • ••• • • •• 147,450 Corpus Chrl. ti . •••.. .. 189,196 19,121 Corsicana •• • . •. . .• . • 2,250,916 Dalla . .......... . ... EI Pa. o ... .. .. .•••.• 293,711 732,416 fort Worth .. ........ Galveston •• 90,653 2,267,045 Houston ••• ••••••••• 24,722 Laredo ••••••••• •• •• Lubbock ..• • .•••. . . . 158,310 60,443 Port Arthur •..•..••.• 51,979 San Ang elo •••.•.... 540,923 Son Antonio • • •.••• • • Texarkana 2 • •• • ••••• 19,685 Tyler •.•.•. ..• . • .... 83,418 95,341 Waco • • . . • o . o • • • o . o 105,340 Wichita fall •.•...... o • 0 Se pt. Aug. Se pt. 1958 1958 1957 Se pt. 30, 1958 Sept. 1958 Area from Sept. 1958 9 mo s. 1958 •••••••• 22 $ 107,470 16.6 17.4 19.0 9 15 28,589 13.4 12.6 12.4 9 7 9 16 18 17 10 -2 1 3 21 21 5 6 4 8 11 9 5 0 4 0 8 7 8 25 -3 -10 12 3 5 9 8 3 9 3 1 7 8 7 61,843 116,461 119,384 102,740 116,570 21,941 1,108,871 155,550 376,611 64,551 1,200,738 22,106 105,367 45,866 42,858 390,107 17,126 60,724 67,394 109,141 17.5 20.2 19.3 17.2 19.7 10.4 24.8 22.8 23.8 16.4 22.7 13.7 18.4 16.1 14.6 16.8 14.2 16.3 16.8 11.6 16.4 18.5 15.8 15.6 20.2 8.5 24.5 22.3 22.0 15.2 21.8 12.8 17.3 16.4 13.2 16.2 13.4 14.8 16.9 10.9 16.8 19.2 16.9 17.0 19.6 8.8 25.9 22 .9 22.3 16.2 22.7 14.0 15.7 17.5 14.6 17.3 14.0 16.2 16.9 11.3 $4,669,388 21.2 20.3 21.0 6 17.6 19.7 19.4 10 5 6 5 4,351 173,029 21.4 10 11 Total-24 citie •........ $8,197,327 15.5 17.0 amounted to $43,707,000 for the month of Se ptembe r 1958. 344 3,917 $ 1,294 $ 12,299 29 - 62 -28 608 4,535 2,873 24,692 -49 65 31 202 362 308 359 92 2,165 713 739 117 1,355 465 164 1,245 221 147 1,508 2,451 2,341 3,207 2,121 18,381 5,938 6,078 1,089 11,894 2,575 1,571 13,507 1,996 1,338 3,213 3,282 5,270 1,130 1,088 13,716 5,329 3,807 249 21,058 4,953 359 4,696 1,492 889 16,192 21,487 36,658 16,121 18,619 120,365 49,728 40,280 2,862 175, 119 3 1,474 8,403 47,067 12,232 5,861 85 44 158 -76 -39 1 -32 -31 26 -6 31 4 -27 15 -4 148 84 23 6 -21 -2 58 18 -70 23 83 -21 61 -21 -47 43 5 3 15 50 14 89 1 -18 -1 47 88 20 1 -43 Total-17 citie . .. 9,606 84,447 $74,698 $639,459 -8 Tucson •••••.• • Shreveport • • •• TEXAS Abilene • • •• • . . Amarillo ..•••• Austin •••.•••• Beaumont •••• • Corpus Christi .. Dalla ....... . . EI Pa.o ....... fort Worth .... Galveston ••. • • Houston •••••• Lubbock .... •• Port Arthur • • . . San Antonio . . • Waco •• •• .• • • Wichita fall •.. Se pt. 1958 from - - - - - - - - - - - 9 mo •. 1958 Aug. Sept. compo with by area 1958 1957 9 mo •. 1957 Othe r cities •..•. • .• •• .• • ..••••.• • ••••• -13 -21 -8 -10 -18 -8 -2 -17 45 -1 1 7 8 11 16 6 17 0 9 0 6 HOUSEHOLD APPLIANCE STORES Total Eleventh Di.trlcl. . .... .. ........ . . . Dalla •.• . .......... •.• . •. .. . .•... .. . . . 19 14 27 27 Houston •••..•.•..• • . •.•.• • . • •..••. • . • Lubbock . . ..•. • ..•...... • ... • • . . . ..•.• January-August Augu.t 1957 1957 1958 fiVE SOUTHWESTERN STATES' .......... $ 403,089 $ 444,536 $ 259,086 $ 2,783,384 $ 2,412,873 900,735 Resid e ntial • ••. • •. • 176,673 174,119 115,789 1,115,225 226,416 270,417 1,512,138 Ail other ... .. .. . .. 143,297 1,668,159 UNITED STATES ...... 3,4l>6,576 3,607,056 2,817,966 23,798,508 22,656,652 9,033,764 Resid e ntial. ••• . • . • 1,450,576 1,557,443 1,283,513 9,500,035 All other .......... 2,016,000 2,049,613 1,534,453 14,298,473 13,622,888 1 12 Lin e of trade Dalla •. • •. •.. . .. .. . . . ....... . ......... July 1958 18 (Pe rcontag e chang e in re tail value) Amarillo .. .. .. . . ... . . ..• •• . . •..•••.• . • Austin ••.• •• ..••..••. • ...•.. • •.•.•. •• • (In thousand. of dollars)' --- SALES AT FURNITURE STORES AND HOUSEHOLD APPLIANCE STORES fURNITURE STORES Total Eleventh Di.trict . . .. ............. .. VALUE Of CONSTRUCTION CONTRACTS AWARDED 1958 9 mo •. 1958 camp. with 9 mo •. 1957 ARIZONA 1 De posits of ind ividual s, partn e rship s, and corporations and of states and political subdivi sion s. 2 Th ese figur es include only on e bank in Te xarkana, Te xas. Total debits for all banks in Te xarkana , Te xa s-Arkansas, including one bonk locate d in the Eighth District, Area and type 9fi 1958 LOUISIANA 10 •• •• • •• • August Aug. S 1958 l 9 mos. San Antonio . .••.••...•.. • •. • ••• • .• • •.• Shreveport, la . •..•••.. • •. • .. •• ..••. • .. Wichita fall • . ............ . ..... • ... . .. 0 -13 -1 2 3 -6 6 -13 -3 NONAGRICULTURAL EMPLOYMENT Ari zona, 'louisiana, Ne w Me xico , Oklahoma, and Texas. SOURCE , f . W. Dodge Corporation. five Southwestern Stotes' CRUDE OIL: DAILY AVERAGE PRODUCTION Percent change Number of persons (In thou.and. of barrels) Augu.t 1958 S e pt ~ mber Type of employment Sept. 1958 from Septe mber 1958r Aug. 1958 4,266,000 737,100 3,528,900 240,700 315,800 4,359,900 785,100 3,574,800 265,700 321,700 0.4 -1 .8 .3 -5.8 .4 -.9 -1.0 -10.3 -3.6 -5.4 394,600 1,127,200 191,700 532,500 726,400 412,700 1,137,800 184,700 523,200 729,000 - .7 .6 -1.0 .0 3.5 1958e Sept. 1957 Change from Ar e a 3,230.1 2,868.4 536.7 W est Te xa s • .. • •.••••• 1,256.3 164.4 Ea. t Texa. (p roper) . •. .• Panhandle ............ 107.8 Re.t of Slale . ......... 803.1 252.0 Southe a ste rn Ne w Me xico •• North e rn louisiana • • • •.. •• 109.7 OUTSIDE ELEVENTH DISTRICT .. 3,827.5 UNITED STATES ............ 7,057.6 elEVENTH DISTRICT. .•. . . . . Texas ..•..••.••..•..••• Gulf Coa . t • . . . . ... . . .. SOURCES : 1 !l Augu. t 1958' Ser~57~er Augu.t 1958 Septe mber 1957 3,046.2 2,689.8 501.1 1,181.4 152.8 105.9 748.6 249.9 106.5 3,810.5 6,856.7 3, 187.1 2,836.3 556.2 1,205.8 180.5 107.6 786.2 239.4 111.4 3,711.8 6,898.9 183.9 178.6 35.6 74.9 11.6 1.9 54.5 2.1 3.2 17.0 200.9 43 .0 32.1 -19.5 50.5 -16.1 .2 16.9 12.6 -1.7 115.7 158.7 September 1958' Estimate d from Am e rican Pe trol e um In stitute week ly re ports. Unite d States Bure au of Mines . BUSINESS REVIEW 12 Total nonagricultural wage and solary workers • • 4,281,600 739,600 Manufacturing •.• •• .•.. • • Nonmanufacturing • • • •. • .. 3,542,000 238,300 Mining • • •• • . ••.••.•.• 304,300 Construction • • •. •. •.. •• Transportation and public 391,800 utilities •••• • •.. • .•.. Trade . • .. . ..... . .. • .• 1,133,800 189,800 Finance ••• • ..•.. • , .• , • 532,300 Se rvice •••. • • . • •.••••• 751,700 Gove rnment ••.• • .• •• .• 1 Arizona, louisiana, New Mexi co, Ok lahoma, and Texas. e- Estimated . r- Revised. SOURCES , State employment agenci es. f ederal Reserve 80nk of Dalla •. -5.1 -.4 2.8 1.7 3.1
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