Full text of Review (Federal Reserve Bank of Dallas) : June 1960

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BUSINESS
REVIEW
JUNE 1960
Vol. 45, No. 6

THE GROWTH OF THE SOUTHWESTERN
PETROCHEMICAL INDUSTRY
Since World War II, the petrochemical industry, a substantial
portion of which is located in the Southwest, has expanded production several times over. The output of petroleum-derived
chemicals is currently estimated at an annual rate of 50 billion
pounds valued at approximately $6 billion, compared with only
8 billion pounds at slightly less than $1 billion in 1945. Few industries in the United States can claim such a rapid rate of growth
in this IS-year period.
A Short History of Petrochemicals

Petrochemicals, conven~ionally defined as products made
wholly or partly from petroleum or natural gas hydrocarbons, were
developed in research laboratories before and during World War
I. In 1919, this country's first commercial petrochemical plant
was constructed in New Jersey; but, except for a few products, such
as carbon black, progress was mostly confined to laboratory research before 1940. Residents of the Southwest, now accustomed
to chemicals as a basic regional economic foundation, may find it
d~fficult to remember that the Gulf Coast petrochemical industry
virtually did not exist prior to World War II. In fact, the word
"petrochemical" could not even be found in a dictionary before
the end of the war.
The basic incentive to utilize the by-product gases from petroleum refineries and other hydrocarbon resources in the Southwest
for petrochemical manufacture was provided by wartime shortages
of aviation gasoline, synthetic rubber, and explosives. Production
of synthetic rubber, in particular, required construction of large

FEDERAL

RESERVE
DALLAS,

BANK

OF

DALLAS

TEXAS

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

intermediate chemical suppliers, principally styrene and used principally to make styrene, is the major aromatic
butadiene manufacturers. In all, about 20 major syn- intermediate), which are increasingly being derived
thetic rubber, butadiene, and styrene plants were built from petroleum sources but were originally made exduring World War II in Texas and Louisiana, and these clusively from coke and coal tars.
early plants formed the nucleus for today's vast Gulf
Synthetic rubber and synthetic detergents are perhaps
Coast petrochemical complex.
the most obvious examples of petrochemical products
Although the Federal Government was instrumental which have largely displaced older materials. Synthetic
in the development of many of the wartime petrochemi- rubber now accounts for about 65 percent of United
cal plants along the Gulf Coast, private interests rapidly States rubber consumption; and synthetic detergents,
recognized the opportunity and were responsible for 75 percent of cleaning agent consumption. It is estimost of the postwar growth. It is estimated that about mated that about 80 percent of all organic chemicals
$400 million was invested in Gulf Coast chemical plants now manufactured in the United States are derived from
by the end of World War II and that another $500 crude oil, natural gas, or natural gas liquids, contrasted
million in facilities was added by 1950. Nearly all of with less than 45 percent at the end of World War II.
the Government-owned plants constructed during and In addition, several very large-volume inorganic chemiafter World War II were sold to private owners by 1955 cals are produced from petrochemicals. Large quantities
of sulfur are extracted from crude oil or natural gas;
at a cost of more than $250 million.
and synthetic ammonia, the basis of much nitrogen
Petrochemicals have accounted for a steadily in- fertilizer, is derived principally from petroleum sources.
creasing proportion of total chemical product values. Carbon black, perhaps the oldest large-volume petroThe estimated 32 billion pounds of petrochemicals chemical, is still produced extensively in the Southwest.
produced in 1954 were valued at $3.7 billion, or about
A Major Southwestern Industry
one-half of total chemical production. Today, petrochemicals account for about 60 percent of chemical
The petrochemical industry has been centered in the
industry sales, although they represent less than oneSouthwest in recent years and has become a major area
third of the physical volume of chemical production.
employer and income producer. In 1959, there were
It is also estimated that petrochemical facilities are reabout 35,000 workers employed by over 100 firms prisponsible for well over one-half of the entire plant and
marily producing or processing petrochemicals in
equipment investment of the chemical industry. InvestTexas. Moreover, almost one-fifth of the total number
ment in Gulf Coast petrochemicals during the past
of workers at petroleum refineries and gasoline-stripping
decade approached $3 billion; the total investment in
plants were engaged in producing petrochemical raW
this area is estimated to be in excess of $4 billion.
materials. The petrochemical industry in Texas thUS
A portion of the rapid expansion of petrochemicals provided job opportunities for about 45,000 workers
has been at the expense of older materials; recently, whose wages totaled approximately $250 million last
however, the greatest growth has occurred in plastics, year. It is estimated that employment in the industry
which generally are not profitably obtainable from other has increased roughly 16 percent since 1954 and has
hydrocarbon sources. It is estimated that plastics pro- nearly doubled since 1947. In addition, payrolls have
duction this year may reach 6 billion pounds, compared risen fourfold in the past 15 years, with a 41-percent adwith only about 2 billion pounds in 1950. Synthetics vance recorded in the last 5 years.
made from low-cost petrochemical materials also have
In Louisiana during 1959, there were an estimated
frequently displaced products made from coal tars,
17,000
workers employed in the manufacture of chemwood pulp, or vegetable matter. Hydrocarbons derived
icals
and
allied products, the major portion of which is
from petroleum and natural gas are available at a lower
petrochemicals,
and wages totaled approximately $100
cost, partly because such materials are used primarily
million.
Current
employment in the industry is about
for fuel and, hence, have a relatively low established
11/2
times
as
great
as it was in 1947, and payroll earnings
market value. In addition, in several cases in which
have tripled.
petrochemical materials lack a clear cost advantage,
alternative coal- or vegetable-based production capacity
The economic importance of the petrochemical
is insufficient to meet growing industry requirements. industry cannot be judged in terms of employment
This has been the experience with aromatics (benzene, alone, however, as investment per employee is rated

I
I2

BUSINESS REVIEW

6:1960

among the highest of any industry. Hourly employment
has risen only moderately in the last several years, although job opportunities for engineers and scientists
have advanced rapidly and average wages are relatively
high in the chemical industry. In 1958, Texas hourly
chemical workers earned an average of $105 per week;
~ationally, wages have risen faster in the chemical
Industry than in most other industries during the past
decade. In 1954, wages accounted for only 24 percent
of the value added by the chemical industry in the
United States, compared with 38 percent for all manufacturing. These ratios have almost certainly declined
since then.
. In addition to measuring the Gulf Coast petrochemIcal industry in terms of employment, some indication
of the value added and capital spending accounted for
by the industry may be obtained from preliminary reports of the most recent Census of Manufactures. In
1958, the chemical and allied products industry group,
Which includes petrochemicals, added $1,063 million
to the value of chemical products manufactured in
Texas, or about 21 percent of the value added by all
major industrial production within the State. In contrast, the value added by chemical industries during
1954 was only $722 million. From 1954 to 1958, the
value added by chemicals and allied products increased
47 percent, while industry employment rose only
5,000 workers, or 14 percent. Since 1947, the value
added by the chemical industry in Texas has risen about
fOUf times, or nearly twice as rapidly as employment.
Between 1954 and 1958, the value added by Louisiana's chemical industry rose 26 percent - from $250
million to $316 million - and employment declined
2 percent, or 300 workers. Since 1947, the value added
by the industry in Louisiana has nearly tripled, while
employment has advanced about one-half. In other Dis~rict states, petrochemical production is of far lesser
Importance than in Texas and Louisiana. The combined
total value added by chemical industries in Oklahoma,
~ew Mexico, and Arizona is roughly one-third of that
tn Louisiana and one-eighth of the Texas total.

PRODUCTION AND · SALES OF CRUDE
ORGANIC PETROCHEMICALS
UNIT E D STATES
MILLI O N S

OF POUNDS

M IL.L IO NS OF DOLLARS

21,000
SALE =- VALUE

15,000 .

- --

_

,

, '. ,
9,000

I,

1\ , ....,' ..

1'

.

350

2 50

I-

1- -, -

"
~, -

I - ,--:=J __-,.._,'~

I'
- , -- ' ---_~ 1 5 0

'_ ....... ,' 1\------~

50

1950

1958

o

' SO URC EI U,S, Torlff Com ml n lon .

facturers of chemicals and allied products amounted to
$56 million in 1958, or 34 percent of the total spent by
the State's principal industries.
Major Centers of Petrochemical Production

The Texas-Louisiana Gulf Coast chemical complex,
which contributes at least 90 percent of the Southwest's
chemical production, consists of a 700-mile strip of
coastal land, ranging up to 100 miles in width, that
stretches from Brownsville, Texas, to New Orleans,
Louisiana. More than 100 major petrochemical plants
are clustered around the following area complexes, listed
in descending order of size: (1) Houston-Freeport, (2)
Beaumont-Port Arthur-Orange, (3) Baton Rouge, (4)
New Orleans, (5) Lake Charles, (6) Corpus Christi,
and (7) Brownsville. These complexes, although geographically separated, are becoming increasingly interdependent. Moreover, new plants frequently are being
constructed between existing complexes, with pipeline
connections to other plants both to receive raw materials and to deliver products. Feedstock pipelinesespeci~lly for ethylene-exceed 100 miles in length, and
potential users on much of the Gulf Coast would have
little difficulty in locating near such supply pipelines.

According to preliminary data based on the Census
Most locations of petrochemical complexes on the
of Manufactures, Texas chemical producers spent nearly Gulf Coast offer roughly comparable attractions to pro$200 million on capital improvements in 1958, com- ducers because virtually the entire Gulf Coast area is
Pared with only $141 million in 1954, and their plant rich in petroleum and natural gas hydrocarbons, either
and equipment expenditures accounted for 34 percent produced locally or delivered by pipeline from inland
of total major industry capital spending in the State areas. Other major attractions are access to the Gulf
?Ufing the later year. Although moderately smaller than of Mexico, affording chemical companies low-cost
In 1954, the capital expenditures of Louisiana manu- water transportation for their high-tonnage products;
BUSINESS REVIEW

6:1960

l'

the large, readily available supplies of natural gas, sulfur, salt, and lime; and the substantial quantities of
fresh water. The larger petrochemical plants, in addition
to using heavy quantities · of natural gas for fuel and
petroleum or natural gas hydrocarbons for feedstock,
are major consumers of water, principally for cooling
purposes. A single plant may use in excess of 5 million
gallons of water per day, or enough to supply a small
city.
The greater Houston area has proved to be the most
attractive location for chemical producers along the
Gulf Coast in the past several years. Today, chemical
plants are scattered along virtually all of the Ship Channel. Houston area producers, located near a concentration of vety large refineries and major petroleum and
natural gas pipeline terminals, enjoy among the lowest
raw material and fuel costs on the gulf.
Because of its excellent deepwater transportation,
Houston has attracted very large-scale chemical plants
which principally produce intermediate petrochemicals
for water shipment to northern and eastern final processors. At present, most large-volume shipments of
chemical materials from Houston to northeastern
markets are made by tanker or barge, with overland
railroads generally transporting only relatively smallvolume chemical products. It is estimated that Houston
area employment in the petrochemical industry has increased one-third since 1952 and payrolls have nearly
doubled. Between 1954 and 1958, the value added by
chemical and rubber producers in Harris County alone
advanced 30 percent to $261 million, and capital spend-

AVERAGE VALUE OF PLASTICS
AND SYNTHETIC RESINS
~ ~~T p"6u~~ .--_-r-_~U~
NI.!.!TE~
O --'S~
TATT.:oES!....-____r--r__-

.36
.34

.32

.30

f----'----i'---j---f---I-----,

a 0 .281946
L-_~,__~:-:----:~-~_:__~I::-:---___::I
19 46
195 0
1952
1954
1956
1956

SO URCE : U. S. Torl ll

Commi .. lo n.

I! BUSINESS REVIEW
6:1960

ing rose sharply. In the greater Houston area during
1959, an estimated 17,000 workers, earning about $100
million in wages, were directly employed in petrochemical production or the fabrication of finished products
from petrochemicals.
Although the Houston area continues to groW
rapidly, many new chemical companies are currently
locating somewhat away from the now-crowded Ship
Channel- frequently in the direction of Corpus
Christi, where there are many refineries and large quantities of available natural gas. Victoria and Seadrift
already are established chemical centers between the
greater Houston area and Corpus Christi. While Corpus
Christi, witll five refineries as a raw materials base, has
developed as a major chemical center, Brownsville, the
southernmost terminus of the Texas Gulf Coast petrochemical region, has seen only relatively limited chemiical industry development.
The Beaumont-Port Arthur-Orange area has become
the second most important Gulf Coast chemical center,
offering readily available, low-cost raw materials, deepwater transportation, large water resources, and an
established center of chemical industry suppliers. Area
employment in the petrochemical industry d,uring 1959
was approximately 5,000 workers, whose earnings were
in excess of $35 million. Since 1952, job opportunities
in the chemical-manufacturing and -processing industries have expanded 50 percent, and payrolls have
doubled.
Small inland locations of District petrochemical
development include Longview, the upper Texas Panhandle, and the Midland-Odessa-Big Spring area.
Percentage employment increases in the west Texas
petrochemical industry have been impressive in recent
years, but, in actual numbers, such gains have been
small compared with those achieved by Gulf Coast
chemical firms. Because of remoteness from major consumption centers, distance from water transportation,
and a relative scarcity of fresh water, development
of an inland petrochemical industry has been slow in
the Southwest. Much of the production of the Odessa
styrene and butadiene plants is directed toward supplYing a local synthetic rubber plant, although tank-car
shipments of styrene, equal to perhaps one-third of area
production, are made to out-of-District processors.
Recently, plans were announced for the construction of
a new plant in Odessa which is expected to produce 200
million pounds per year of ethylene- and propylenebased chemicals.

LOUISIANA

<S1BATON ROUGE

LAKE CHARLES

liEXAS .

CHRISTI

MAJOR GULF COAST
PETROCHEMICAL CENTERS

Although the chemical industry experienced a
somewhat later start in Louisiana than in Texas, recent
development has been rapid at the three major centers
- Lake Charles, New Orleans, and especially Baton
Rouge. Louisiana is rich in petrochemical raw materials
and water resources and has abundant deepwater and
barge channel plant sites. Chemical industry employl11ent in the New Orleans standard metropolitan area
alone rose about 1,000 workers from 1954 to 1958, and
the value added by chemical manufactures advanced
68 percent to nearly $25 million. At the present time,
Perhaps the most rapid development of the Louisiana
Petrochemical industry is centered in the greater Baton
Rouge area, where raw materials are readily available
from the Nation's largest refinery. Although raw materials (including natural gas) are somewhat more expensive in Louisiana than in Texas, lower transportation
Costs to most major northern markets have encouraged
l11any large petrochemical producers to locate in the

State. A very large portion of the chemicals produced
in. Louisiana is trans~orted by barge up the Mississippi
RIver, but ocean frelghters and tankers make regular
shipments from as far up the Mississippi as Baton
Rouge.
Currently, most Gulf Coast petrochemical producers
are principally making intermediate products which are
shipped to northeastern states for final fabrication. The
Gulf Coast has been comparatively slow in developing
a consumer-oriented chemical industry. Of the estimated
45,000 workers employed by the petrochemical industry
in Texas, only about 3,000 are believed to be engaged
in final consumer product manufacture. Dallas and Fort
Worth presently account for two-thirds of state-wide
employment in the fabrication of plastics and miscellaneous rubber products, and production there appears
to be increasing. Because the manufacture of consumer
or industrial plastics products employs a relatively large
BUS I N E S S REV I E'W !l
6:1960

51

CHEMICALS AND ALLIED PRODUCTS INDUSTRY, 1958 AND 1954

Five Southwestern States
(Dollar. am oun ts in th ou sa nds)
Emp loyment
Area

1958

1954

Arizona . . .. • .... . . . . ...... . . ..
Louisiana • • •.•• •• .•.• . •.. . •• . .•
New Mexico . • .....•.... . . .. • • •
O klahoma •• •• • • . . •. • ...•• . ••••
Texas •• • .• . • .. .. •• . . .. ••... • .

1,154
17,133
7,0 83
1,479
42,1 66

1,333
17,479
5,9 67
1,561
36,976

Tota l • . . .. •• . . .. •• •.• •••.. • .

69,0 15

63,3 16

SOU RCE,

Va lu e a dde d, una djusted

Pa yroll

1958
$

6,004
100,459
47,6 24
7,043
254,518

--

$4 15,648

$

5,607
83,752
3 1,8 07
5,547
179,926

$3 06,639

$

10,348
315,866
105,055
15,52 6
1,063,3 13

$1,5 10, 108

$

15,669
25 0,238
67,472
10,553
722,056

$1,065,9 88

1954

1958

1954

1958

1954

Capital expenditures, neW

$

673
56,137
1,035
821
199,033

$257,699

$

9 23
67,476
533
13,765
141, 176

$223,873

United States Departm ent o f Commerce.

proportion of labor to machines and production in
small-scale plants is often economically feasible, it is
possible that some growth in this industry may take
place in the current labor surplus areas of Texas.
A Competitive Industry

Economies of large-scale production are becoming
increasingly important in the production of petrochemical intermediates, and the average economic size of
plants is showing a steady rise. A comparatively recent
development-now a clear trend-is the construction
of single large plants to produce "merchant" petrochemical intermediates, or basic chemical building
blocks. For example, several ethylene makers produce
in excess of their captive requirements to supply area
users, and a few firms have constructed plants to manufacture ethylene solely for sale as petrochemical
feedstock. In effect, the security and other advantages
of complete vertical integration are sacrificed for the
impressive economies of plant specialization. The first
merchant ethylene plant in Texas was completed in
1953, and most new ethylene users are basing their
plans on the purchase of ethylene, instead of accepting
the high capital costs of captive production. It is estimated that already as much as one-third of the ethylene
produced on the Gulf Coast is sold rather than captively
used.

panies have also sought the advantages of association
with a petroleum company by actually merging with or
acquiring the assets of smaller petroleum producers.
Entry into the petrochemical industry is limited
mainly by the need for large quantities of investment
capital. Patent licenses are obtainable, but extensive
research facilities are needed to keep abreast of the very
rapid rate of technological progress characteristic of
the industry from its beginning. Despite these requirements, there seem to be sufficient numbers of wellfinanced entrants to maintain a vigorously competitive
industry environment. As a result, prices of major petrochemical intermediates and final products have been
steadily declining in recent years, enabling the industry
to win new markets away from established products
and promote new products successfully.

In addition to aggressive conventional interfirJIl
competition between producers of the same product,
there is a great deal of interproduct and interproces s
competition in the petrochemical industry. Interprodu ct
competition is particularly intense in the field of synthetic fibers, while interprocess competition most frequently results from the ability of producers to make
similar products out of a variety of alternative raW
materials . Currently, an intensively competitive situation is developing among acetylene, propylene, and
ethylene
as basic petrochemical building blocks. InterEven though the average capital costs of individual
process
competition,
however, exists at all levels of
petrochemical plants are relatively large, high investment outlays do not appear to be effective barriers to petrochemical manufacture. For instance, there are five
new firms. Recently, petroleum refiners have been no- major commercial methods to produce ethylene presticeably active in the petrochemical field, although not ently in competition. Such intensely competitive
infrequently as partners with established organic or conditions foreshadow a continued rapid rate of growth
inorganic chemical producers. The large investment in the petrochemical industry. An article to appear in a
costs of entering into petrochemicals and the advantage subsequent issue of the Business Review will discuSS
of pooling petroleum and chemical experiences have growth prospects for the petrochemical industry, with
encouraged such joint ventures. Several chemical com- particular reference to the outlook in the Southwest.
THEODORE R. Eel<
General Economist
BUS I NESS RE VI EW

I

16

6 :1 960

-

BUSINESS

REVIEW

BUSINESS, AGRICULTURAL, AND FINANCIAL CONDITIONS

Record Easter-season sales
boosted the Eleventh District department store sales index to
an all-time high in April. Wearing apparel and accessories
scored the most outstanding year-to-year gains.
Department store inventories remained above the
comparable 1959 level but were down more than
seasonally from March. New car registrations in the
four most populous areas, although lower than in the
preceding 2 months, were higher than in April 1959.
Industrial production in Texas remained unchanged from March to April, as the weakness in mining
~ctivity was about offset by the continued strength
In manufacturing. Nonagricultural employment in the
District states increased seasonally during the month.
Unemployment declined seasonally in Texas to 168,000, which is 4.6 percent of the labor force.
District crude oil output declined 5 percent during
the first half of May, with Texas production limited to
8 days. Crude runs to refinery stills decreased seasonally but continued to be larger than a year earlier.
Although demand for the major petroleum products
averaged 4 percent greater than a year ago during

April and early May, large stocks of gasoline preven.t~d norm~1 seasonal price adjustments. Drilling

actIvIty remains depressed in the District at a level
well below that of a year ago.
Construction contracts awarded in the District
states during March showed a sizable increase over
February but still remained slightly below a year
earlier.
Weekly reporting member banks in the District
experienced fairly substantial deposit drains during
the 4 weeks ended May 18, and both loan and investment accounts were reduced. Pressures on the reserve
positions of member banks in the District moderated
in April and early May.
Agricultural conditions in the District remain favorable, although cool weather and dry soils have
reduced prospects in some areas. Production of winter
wheat in the District states is estimated, as of May 1,
t·o be 16 percent greater than last year. Spring vegetables in Texas are making good development but
output is expected to be smaller than in 1959. General rains would benefit ranges and pastures in
western sections of the District.

-------------------------------------------------------------------The arrival of warm spring
weather during April furnished
an additional impetus to the normally heavy pre-Easter sales at
Eleventh District department
stores; as a result, April sales rose 9 percent over a
Year ago. The seasonally adjusted sales index reached
a record level for any month of 181 percent of the
1947-49 average - up from 164 in March and 175 a
year earlier. The previous high was 179, recorded in
both August and November of 1959. At the end of
April, cumulative sales for 1960 were 2 percent higher
than in the first 4 months of 1959.
The effect of the shift in the Easter date on April
?epartment store sales in the District can be seen clearly
In the reports on sales by types of merchandise. Com-

pared wit~ a .year ago, soft goods sales were generally
strong, WIth Increases of 15 percent or more in men's
and women's wearin? apparel. Particularly outstanding
was a 29-percent gam m sales of women's and misses'
DEPARTMENT STORE SALES
(Percentage change in retail va lue)

April 1960 from
4 months,

March
1960

April
1959

1960 from
1959

Total Eleventh Di.trict. ••••..••
Corpus Christi •... ... ........•
00110 •••••••....• •••••••••••
EI Po.o •. ............•......
Fort Worth ... ....... .. .... ..

16
13
17
3

9
10
12

2
-2

Houston •••••••.. . • .. •..••• •
San Antonio .. .••...••••• • •••

13
1

Area

Shreveport, l a .... . ....• . ••..
Waco • •••••. . ••••.• . • ••••..
Other cities •••.•. . • •••••.•..

29
29
22
23

-6
10

7
9
11

7
12

5
-10

-2
7
-2
-1

-3
4

BUSINESS REVIEW
6:1900

I

INDEXES OF DEPARTMENT STORE SALES AND STOCKS

WINTER WHEAT PRODUCTION

Eleventh Federal Reserve District

(I n thousands 01 bushe ls)

(1947-49

-=

= 1DO)

1960,

Average

indicate d

Date

Unadjusted

Se asonally
adjusted

1959: April. • • • • • . • •
1960: February . . • • _ .
March ...... ..
April • .. . . _.. .

158r
122
143
172

175r
157
164r
181

r p -

Are a

STOCKS (End 01 month)

SALES (Daily average)

Unadjusted
180r
175
191
188p

Se asonally
adjusted

174
180
182r
180p

1959

1949-58

Oklahoma • •• • ..• • .... • •••••
Texas .. .... . ....... .. ..... .

3,672
1,200
3,791
89,174
59,850

1,229
'772
1,678
66,759
36,751

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

182,771

157,687

107,189

louisiana . .... .. . . .. .. .. . .. .
New Me xico ................ .

1

Revised.
Preliminary,

May 1
1,152
1,080
4,063
99,876
76,600

Arizona • • ••. . • • .. • •.. . . • • • •

Short- tlmo averag e .

SOURCE : United States Departme nt 01 Agriculture.

accessories. On the other hand, sales of dmable goods
were generally below those of a year earlier. Major
household appliance sales were down 18 percent, and
sales in departments featuring furniture and bedding
and radios, television sets, and musical equipment were
each 2 percent lower.
District department store inventories declined a little
more than seasonally in April but at the end of the
month were still 4 percent higher than at the same
time last year. New orders placed during April and
orders outstanding at the end of the month were also
more than a year ago. In relation to sales, however,
both inventories and orders outstanding were slightly
lower than in April 1959.
ANNOUNCEMENT

The Federal Reserve Bank of Dallas has reviewed the
seasonal adjustment factors relating to the Eleventh
Federal Reserve District department store sales index
series from 1950 to date and has revised these factors
where shifts in the seasonal buying pattern were indicated. Simultaneous reviews of district and national
seasonal factors have been made by each of the 12 Federal Reserve banks and the Board of Governors of the
Federal Reserve System. Revised Eleventh District index
numbers from 1955 to date are available, upon request,
from the Federal Reserve Bank of Dallas.

The bulk of the District wheat crop is headed. In
some sections, wheat prospects were reduced slightly
because of inadequate moisture during the time when
the kernels were filling. Early fields of grain are being
combined. Production of 1960-crop winter wheat in
the District states, as of May 1, is placed at almost 183
million bushels, or 4 percent above the month-earlier
forecast and 16 percent greater than output in 1959.
The gain over a month ago is virtually all accounted for
by a 9.3 million-bushel increase in Oklahoma; Louisiana showed only a 90,OOO-bushel rise. Declines w~re
noted for the other District states. Production in Texas
is now indicated at 76.6 million bushels, which is 3
percent below the month-earlier forecast but is 28 percent larger than in 1959.
Cotton in the Coastal Bend and south Texas is
making rapid growth; in the Lower Valley, the crop is
forming bolls. Heavy rain in upper coastal, southcentral, and Blackland counties of Texas packed soils
in some areas so that replanting was necessary. Replanting also has been heavy in the Plains area of the District
as a result of poor germination from cool weather.
Drilling of grain sorghums is virtually complete as far
north as the Texas Blacklands, although planting is just
getting under way in the High Plains of Texas and NeW
Mexico. In eastern sections, corn is growing well, and
mid-May rains maintained favorable prospects.

Spring vegetable harvest continues active in the
Cool temperatures, high winds, Lower Valley and the Winter Garden areas. In more
and widely scattered thunder- northerly sections of the District, cool temperatures
showers characterized District delayed development of crops. Tomato harvest is under
weather conditions during the way in the Lower Valley, and plants in south-central
past month. The unseasonably and eastern Texas are setting fruit. In the Panhandle,
cool temperatures have prevented optimum germination planting of the crop is nearing completion. Blowing
of seeds and delayed growth of crops in many areas, and sand damaged cantaloupes and watermelons in south
high winds have sapped surface soil moisture supplies. Texas, while these crops in south-central and eastern
General rains are needed in the western half of the Dis- Texas are making slow development because of loW
trict, particularly in the Southern High Plains, and temperatures. High winds also sapped topsoil moisture
in north Texas onion areas, and potatoes and onions
plantings have been delayed because of dry soils.

I BUSINESS

REVIEW
6:1960

CONDITIO N STAT ISTICS OF WEEKLY REPORT IN G
MEMBER BANKS IN LEADING CITIES

in the Panhandle suffered light damage as a result of
blowing sand.
Production of spring vegetables in Texas, excluding
potatoes, is estimated, as of May 1, to be 11 percent
below output last year. Outturns of cantaloupes, sweet
corn, honeydew melons, and late-spring onions and
t?matoes are expected to be below a year ago. A reduchon in the number of acres for harvest is primarily
responsible for the decline in output.
Fruit prospects are favorable in central and east
Texas. Thinning of peaches is under way in the Fredericksburg area . Pecan trees have set a good crop of
nuts in most areas, and spraying for nut case-bearer
has begun.
Range conditions show considerable variability in
the District. Ranges and pastures in the Blackland,
SOuth-central, and coastal counties of Texas and in
Arizona are providing excellent grazing. Pasturage in
SOutheastern and northeastern Texas is fair, and additional rain is needed. Range conditions in northeastern
parts of Texas and Oklahoma, in the Trans-Pecos of
!exas, and in Arizona and New Mexico are deteriorat~ng because of inadequate moisture. Supplemental feedIng has been stepped up in some of these areas.

Eleventh Federal Reserve District
(In Ihousand s of dolla rs l

It em

Deposits at weekly reporting
member banks in t~e. District
\11- ) FINAN
JJ. j moved almost $85 mIllIon lower
\-!.~ ~~~ <;. .A~
-A../ during the 4 weeks ended May
...................... ...""."...............
18 , and banks met the deposit
drain by liquidating both loans and investments. Most
of the contraction in deposit balances centered in the
demand categories, where accounts of individuals and
bUsinesses declined $114 million and interbank acCOunts decreased $24 million. Other types of demand
balances moved slightly higher. Time accounts also
decreased during the 4 weeks, influenced primarily by
net withdrawals from the accounts of individuals and
businesses. The 4-week deposit drain was slightly
smaller than the decline recorded for the comparable
period of 1959, but total deposits on May 18 were about
4 percent below the year-earlier level.
Net liquidation of loans at weekly reporting banks
during the 4 weeks ended May 18 totaled $9.0 million,
Contrasted with an expansion of $27.7 million in the
same period last year. Except for loans to nonbank
financial institutions and loans to dealers in Government
securities, each of the major loan categories showed a
decline. Investment accounts at the reporting banks

Apr. 20,

1960

1960

Ma y 20,

1959

ASSETS
Comm ercial and industrial loans • • • .•. .•• • • • ..
Agricultural loans••• . ... . . ••• •.... . ••.....•
loan s to brokers and de al e rs fo r pu rcha si ng

or ca rry ing:
U. S. Governm e nt securi ti es .. . ..... .. .... ..
Othe r sec urities .. .. ... . .. . . ... .. . . . . .. ..
Oth e r loans for purcha sing or carryin g:
U. S. Gove rnm e nt securities ... ... .... . . . .. .
Oth e r se cu riti es . . .. . . . . . .. ... . ....... . . .
loon s to nonbank flnancial in stitution s:
Sales flnanc e, personal flnance , e tc .. . . ... . ..
Saving s bank s, mtge . co s., in s. ca s., e tc . . .. . ..
loons 10 foreign banks . .. .. ... .. . .. . ... ... .
loon s to dom estic comm ercial ban ks . . .. .. . ....
Re al·estate loon s . . . . .. . ..... .... . .. . . . . . . .
All ath er loans.. .. . . .... .. ...... .. . . ..... .

Gross loon s . . ... ... .. . . . . ......... ... . .
l ess rese rves and unallocat e d charg e·offs . •
Ne t loan s . ... . .. . . .. . .. .. . .. .. . . .. .. ...
Tre asury bills ... .... ... . .... ......... .. . "
Tre asury cerliAcates of ind e bte dn ess . .. .. . . ...
Tre a sury notes and U. S. Government bond s,
including gua rant ee d obligations, mat urin g:
Within 1 year . . .. .. . . .. . . .. .... . ... . . . .
Afte r 1 but within 5 ye a rs .... ... . .. ... .. .
After 5 ye a rs • •• •• • ••••••••• • ••• • •••• • ••
Oth e r se curities . ..... . . . .. . . . . . ..... .. . .. .

1,468,643
32,03 1

16,390

9,4 05
180,694

6,113 }
181,232

182,834

127,503
122,855
453
11 ,674
208,616
754,657

111,897
120,271
730}
15,215
2 15,211
761,859

---

Total tim e d epo sits •••••• . • ••••••• • ••••
Talal d epasils ...... . . .... .. . . ......
Bill s pa yabl e, re discounts, e tc ... .. . . ...... .. .
All other liabilities . .. . .... . . . . ..... .... . .. .
Capito l acco unts . .. ..... . . .... .... . . . . . . . .
TOTAL LIABILITIES AND CAPITAL ACCOUNTS .

-2,865,658
--

2,944,517
54,265

2,881 ,081

2,890,252

2,816,659

2 1,590

18,604

97,784

---

48,999

-- - 38,085
- - - 88,830
-36,043
70, 251
819,433
295,503
346,017

467,826
48 1,896
2,016
49,95 2
536,7 26
184,728

Tim e d e posits
Individual s, partn ership s, and corporations ....
Unit e d States Gove rnm e nt . . .... . . . .. . .. ..
Postal savin gs . .. . .. . .... . .... .. .... . ...
States and political subdivisions . . .. . . ......
Bonks in th o U. S. and fore ign count ries .. .. . .

12,410
223,925

2,93 5,508
54,427

Cosh it e ms in proc ess of coll e ction . .. . ........
Ba lanc es with banks in the Unit e d Stat es .... .. .
Balanc es with bonk s in fore ign countries . . .. .. .
Curre ncy and coin . . . . . . . .... . . . . .. . .. . . ...
Reserves with Fe d eral Rese rve Bon k . . . . . . . . ..
Other a ssets . . . . .. . . ... ....... . .. . . . . . .. . .

Totcl d emand d eposits • ••• • •• •• ••••••••

35,4 16

291 }
25,350

1,588,837

LIABILITIES AND CAPITAL ACCOUNTS
De mond d e posits
Ind ividual s, pa rtn ers hips, and co rporation s ....
Unite d States Governm ent . . .. ...... . . ... .
Stat es and politica l subd ivision s . .. ....... . .
Ban ks in th e Unite d States . .. .. . ...... . . '"
Bonk s in fore ign co un tri es . .... . . ... ... . . . .
Ce rtifl e d and offlcors' ch e cks, e tc . . .. .... .. .

1,474,297
32,051

286
18,691

Total investme nts . ......... . .. . ....... . . .

TOTAL ASSETS ......... ...... .. ... ...

... .
............."."...
/~ (q il....{~··
"..~~:\

May 18,

73,499 }
809,108 1,176,771
3 15,641
368,737
355,006

-1,623,674 1,718,391
- 488,141
- - -504,180
-464, 268
1,827
50,544
555,469
194,862

477,091
2,04 8
48,603
555,881
164,208

6,193,06 2

6,269,037

-6,2 87,061

2,799,817
160,058
252,101
8 24,507
19,22 4
44,762

2,913,94 3
118,466
231,768
848,503
16,954
43,998

2,920,367
156,119
265,432
888,466
15,845
64,590

4,173,632

4,310,819

1,032,945
12, 255
394
247,236
3,397

1, 284,440

-1,296,227

1,095,196
7,055
421
178,826
1,643

147,197
109,293
551,663

5.469,859
128,731
122,233
548,214

5,593,960
94,565
69,262
529,27 4

6,193,06 2

6,269,037

---

--4,100,469

1,025,558
12,2 55
394
242,340
3,893

---

-5,384,909

--- ---

--1, 283,141
- -- - --

--- - - -

-6,287,061

NOTE ,
,Effe cti ve July 1,.1959, thi s se ri,es ","o s I'e vi sed Th e rovi se d form includ es
seve ral new ,te ms, .th e most Importan t o f w h'lch IS loan s to flnonciol in stitUtion s, pre vi.
ou sly re port e d again st oth e r loan categ ori es. Comparob le ye ar·earli e r fig ures for th o
ne w It e ms wi ll be shown wh e n th e y be com e a vailabl e .

were reduced $34.8 million, reflecting a moderate decrease in holdings of Government securities and a somewhat larger reduction in non-Government investments.
Proceeds from the net liquidation of loans and investments failed to match the volume of deposit drains
during the 4-week period, and reporting banks increased
their borrowings while also reducing cash accounts.
BUSINESS REVIEW

6:1960

I

NEW PAR BANKS
The Merchants Marine Stdte Bank, Port Isabel,
Texas, an insured nonmember bank located in the territory served by the San Antonio Branch of the Federal
Reserve Bank of Dallas, was added to the Par list on
its opening date, May 2, 1960. The officers are: Noel
E. Ryall, Chairman of the Board; Richard A. Roloff, President; Eugene Geyer, Vice President and Cashier; and
Ura J. Breedlove, Vice President.
The Iraan State Bank, Iraan, Texas, an insured non member bank located in the territory served by the EI
Paso Branch of the Federal Reserve Bank of Dallas, was
added to the Par list on its opening date, May 9, 1960.
The officers are : Elmo B. Hail, Chairman of the Board;
Travis B. Curtis, President; Homer C. Smith, Vice President (Inactive); and Mary lu Webb, Cashier.
The Mid Valley State Bank, Weslaco, Texas, an
insured nonmember bank located in the territory served
by the San Antonio Branch of the Federal Reserve Bank
of Dallas, was added to the Par list on its opening
date, May 10, 1960. The officers are : Garland F. Smith,
Chairman of the Board (Inactive); V. C. Thompson, President (Inactive); George S. Potts, Executive Vice
President and Cashier; C. C. Stokes, Vice President
(Inactive); W. H. Drawe, Second Vice President (Inactive); Bob l. Davis, Assistant Cashier; and Mrs. Rosalee
lacey, Assistant Cashier.
The Tarrant State Bank, Fort Worth, 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,
May 20, 1960. The officers are : l. N. Wilemon, Chairman of the Board; D. J. Singletary, President and
Director; l. E. Ballengee, Vice President and Cashier;
and Darrell Wilemon, Vice President.

Reserve positions of member banks in the District
were under less pressure in April than in March. A verage reserve balances maintained by member banks during the 4 weeks ended May 4 were roughly unchanged
from the preceding 5-week average, but the level of
reserves was sustained with a considerably lower volume
of borrowings from the Federal Reserve Bank. As bank
deposits moved lower, the average level of required
reserves declined $11 million, inducing a comparable
expansion in average excess reserves. Reflecting both
the improvement in excess reserves and the reduction
in borrowings from the Reserve Bank, the net reserve
position of member banks in the District shifted from
average net borrowed reserves of $9.2 million in the 5
weeks ended April 6 to net free reserves of $23.9 million
in the 4 weeks ended May 4. Both country banks and

r BUSINESS

110

REVIEW
6: 1960

reserve city banks experienced the moderation of reserve pressures.
RESERVE POSITIONS OF MEMBER BANKS
Eleventh Federal Reserve District
(Ave ra ges of daily figures . In thou sand s of dollars)

=================================
Month of
4 wee ks e nded
5 wee ks e nd e d
It em

Apri1195~

May 4, 1960

April 6, 1960

524,67B
522,423
2,255
519,809
4,869
14,389
-9,520

520,202
518,272
1,930
514,769
5,433
37,183
-31,750

44B,779
441,759
7,020
406,938
41,841
8,469
33,372

453,451
447,394
6,057
423,135
30,316
7,797
22,519

457,045

973,457
964,182
9,275
926,747
46,710
22,858
23,85 2

973,653
965,666
7,987
937,904
35,749
44,980
- 9,231

1,007,404

RESERVE CITY BANKS
Totol rese rves held . .. . . . . . . . .
With Fe de ral Rese rve Bonk .. .

Ca sh allowe d a s rese rve s . . . .
Required rese rves • . •.•• .. •• .•

Excess rese rve s . ..... .. ..... .
Borrowing s• .. .• •..• • ..• • •...
Free rese rves •. . .••..••..••..

550,359
547,068
3,291
20,198
-16,907

COUNTRY BANKS
Total rese rves held . . . . .. .. .. .
With Fed eral Rese rve Bank . . .

Cash allow e d a s rese rves . . . .
Requir ed rese rves .• . ..••••...

Exces s reserves . ..... . ...... .
Borrowing s• ....• .• ... ••• . . ••
Free re serv es • •• . . . .• .... • ••.

412,765
44,280
l,lB7
43,093

All MEMBER BANKS
Total rese rves held . •. " .. ... .

With Federal Reserve Bank .. •

Cash allow e d a s rese rves . .. .
Re quire d rese rves • ••••. •••• .•

Excess re serves . . . . . ... .. ... .
Borrowing s• • • • • •... • .•••..••
Free rese rves• • •••... •• .....•

959,833
47,571
21,385
26,186

NOTE . Regulation s pe rmitting member banks to count part of th eir vault cosh in
mee ting rese rve requirem ents became effective in Dece mb er 1959, and on January 1/
1960, th e rese rve computation period for country membe r bank s wa s chang ed to' 0
bi wee kl y ba sis. Th ore fore , monthly data comparable to yeor~earli e r mat erial aro not

a vailabl e.

Earning assets of the Federal Reserve Bank of Dallas increased $31.8 million in the 4 weeks ended May
18, reflecting expansion in both Government security
holdings and discounts for member banks. In contrast,
the Bank's gold certificate reserves declined $38.9 roillion. With the decline in post-Easter currency needs in
the District, the Bank's Federal Reserve notes in actual
circulation decreased $5.8 million but on May 18 were
1.4 percent above a year earlier.
CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS
(In thousands of dollars)

==============================================~----~~
Ite m

May1~

1960

Ap~ 2 ~

1960

May2~

1959

----------------------------~~----~~----------Total gold certiAcate reserves ..... . . .... . . • .
679,235
718,126
714,766
Discounts for member banks . . . . . . . . . . . . . . . .
Oth e r discounts and advances . . ....... . " . .

U. S. Governm ent securities ........ .. .......
Total earning a ssets.. .. .. .. .... .. .. .. .. .. .
Memb er bank reserve deposits..... . .. . . .• • .
Fed eral Reserve notes In actual circulation.....

30,533
0
1,033,886
1,064,419
922,798
775,262

8,860
0

1,023,738
1,032,598
949,299
781,030

12,20 0
884

l,033,95~
1,047,03
954,77 1
764,468

--------------------------------------------------Crude oil production declined 5
percent in the District during the
first half of May, following reduCtions in scheduled output in
Texas, Louisiana, Oklahoma,
and southeastern New Mexico. With Texas production
limited to 8 days for the first time since June 1958,

District crude oil output averaged only 2,795,000 barrels daily, or nearly 14 percent lower than a year ago.
Outside the District, crude oil production declined moderately in May and was about equal to the year-earlier
level. Crude runs to District refinery stills declined seasonally during the first half of May, averaging 2,339,000
barrels daily, or 3 percent greater than a year earlier.
. Total imports of crude oil and refined products durIng April and the first part of May held about steady
but averaged 15 percent lower than in the comparable
period in 1959. Stocks of crude oil on May 6, totaling
260,525,000 barrels, were 2 percent greater than a
year earlier. Although crude oil demand and supplies
Were in somewhat better balance in May than in April,
several major purchasers continued prorationing, and
fears of additional reductions in postings persisted.
Drilling activity in the Southwest during April was
lower than in the late winter and continues well below
the level anticipated for this time of the year. An estimated 1,434 wells were completed in the District in
April, compared with 1,961 a year earlier, and footage
drilled declined about 21 percent. During the month,
an average of 773 rotary rigs was in operation within
the District, or 133 fewer than a year earlier. Outside
the District, drilling activity generally is only moderately lower than a year ago, possibly indicating that
Continued depressed rates of crude oil production are
reducing the drilling incentive in the Southwest.
The total value of construction
contracts awarded in the five
southwestern states during March
increased 22 percent over the
preceding month but was 15 perCent less than a year ago. Both residential and "all
other" awards rose sharply over the February levels,
though remaining 12 percent and 17 percent, respectively, below the March 1959 figures. The cumulative
Value of contract awards in the five states in the first
3. months of this year was 13 percent lower than in the
sImilar period in 1959; most of the decline centered in
residential awards, which were down 19 percent.
Outlays for cemmercial buildings, churches, schools,
hospitals, and highways are sources of continuing supPort to District construction activities . Among the
major business expansions and other construction proj~cts recently announced were the building of a $14 milhan addition to an existing power-generating plant in
Amarillo and the construction of a $7 million shopping
center in El Paso, a $10 million apartment hotel in

Dallas, a $9.3 million hospital in Houston, a $1 million
?aval aviation facility in Dallas, a $1 .2 million hospital
III Dallas, and a $1.4 million hospital in Weslaco.
The seasonally adjusted index of Texas industrial
production in April remained at the revised March figure of 173, compared with 170 for the same month in
1959. A continuing reduction in mining activity was
offset by an increase in durab1es and nondurables manufacturing, with special strength apparent in the latter
sector.
Total nonfarm employment in the five District states
increased seasonally during April to reach 4,413,900,
or 55,600 above the March level and 132,700 (over 3
percent) above a year ago. Employment in the construction, government, and trade sectors accounted for
the largest month-to-month gains. On the other hand
mining was steady, while transportation employment i~
April was only slightly lower than a month earlier.
INDUSTRIAL PRODUCTION

= 100 )

(Seasona lly adiusted indoxes, 1947·49

Area and type of ind ex
TEXAS
Total industria l production ••••
Total manufactures •••• •••••
Durable manufactures •••••• •

Nondurablo manufactures . ..•
Mining •• •••• ••• • ••• • • ••••

April
1960p

March
1960

February

1960

April
19.59

173
219
249
20.5
129

173
21.5
249
200
132

173
210
246
192r
137

170
206
239
191
136

16.5
164
173
1.59
128
278

16.5
164
17.5
1.57
12.5
282

166
166
177r
1.57
126r
281

162r
161r
171r
l.5.5r
129r
262

UNITED STATES
Tota l industrial production • • ..
Total manufactures • • •••••••

Durable manufactures •• • ••••

Nondurable manufactures •• • •
Mining ... ................
Utill ti••••• •• . . .. • •••• • .•• •

p - Preliminary.
r - Revised.
SOURCES , Board of Governors of the Federal Rese rve System.
Fed.ral Reserve 8ank of Dallas.

NONAGRICULTURAL EMPLOYMENT
Five Southwestern States]

Percent change
April 1960 from

Number of persons

Typ. of employment

April
1960e

Total nonagricultural
wago and sa lary workers •• 4,413,900
78.5,700
Manufacturing • ••.•.••• • •
Nonmanufacturing •.•• •••• 3,628,200
247,800
Mining •••..•.•.• • •• . •
Construction •••••..•.••
302,800
Transportation and public
404,000
utilities •••••••••• •• .
Trade • . ••• . ....••••• • 1,088,.500
198,400
Finance • ••••••••.••• • •
.538,.500
Service •.••••• • •• • ..••
848,200
Government •••••••..••

March
1960

April
19.59r

4,358,300
780,400
3,.577,900
247,600
288,900
40.5,600
1,073,800
196,000
.531,600
834,400

March
1960

April
19.59

4,281,200
770,900
3,.510,300
2.51,600
318,100

1.3
.7
1.4
.1
4.8

3.1
1.9
3.4
-1..5
-4.8

394,000
1,037,100
190,300
.507,700
811,.500

-.4
1.4
1.2
1.3
1.7

2 ..5
.5.0
4.3
6.1
4 ..5

Arizona, Louisiana, New Mexico, Oklahoma, and Te xas .
o - Estimated .
r - Rev ised.
SOURCES , State e mployment agencies.
Federal 'Reserve Bank of Dallas.

1

BU SINESS REVIEW

6:1960

1

CONDITION STATISTICS OF ALL MEMBER BANKS

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

Eleventh Federal Reserve District

(Dolla r amounts In thousa nds)

(In millions of dollars)

=-

Debits to de mand
de posi t accounts l

Ap ril
1960

Annual raf e of turnover

April 30,
1960

Apr.
Mar.
1960 1959

Ap r. Mar. Apr.
1960 1960 1959

ARIZONA
5

$ 135,329

20.5

2 1.5

20.4

- 8
3

10
16

51,109
184,791

18.8
22.3

20.0
2 1.1

17 .9
18.6

0

10

29,192

16.6

15.8

14.6

91,565
- 7
2 15,187
- 5
231,118
9
158,985
- 4
193,4 18
4
17,333
14
2,675,392 -11
333,304 - 12
736,743 -10
88,802
- 3
2, 496,104
-8
30,002
1
196,810
- 7
65,335
0
52,656
1
611,636
0
24,206
15
83,930
-3
105, 258
- 9
114,100
-5

-5
- 2
8
3
1
14
9
- 1
- 3
-5
0
3
7
2
- 6
- 1
12
-4
-4
-3

18.5
22 .9
19.2
19.4
2 1.6
10.7
2 8.9
2 4.1
24.5
16.6
24.1
16.2
20.4
18.8
14.5
20.0
17.4
17.3
18.8
13.9

19.3
24 .0
17.9
20.3
20.6
9.4
32.4
26.6
27 .0
16.9
26.0
15.6
21.5
18.4
13.8
20.2
15.5
17.5
20 .8
14.5

18.2
22.9
16.1
17.8
20.0
8.9
25.8
24.2
23.8
17.8
23.9
15.8
18.4
16.9
14.5
18.7
15.6
16.8
18.8
13.6

Tucson .. • •........ . . $

230,080

-7

LOUISIANA
Monroe .... ........ .
Shreveport •...• • .. • .

81,589
351,507

NEW MEXICO
Roswell .. .. .. .. ... ..
TEXAS

40,984

Abil ene .. . .... .. . . ..
Amarillo .. . .... . ....

Austin .. . .. . . . . . ....
Beaumont •.. .. . • ...•

Corpus Christi . . .. . ...
Corsicana .•. .• .. " ..

Dalla s ••. . .•. . . ... . .
EI Pa so . ....... . .. ..
fort Worth .. . ... . ...
Galve ston ..... . • . .. .
Houston • • .. .•. . . . .•

laredo .... ... .. ....
Lubbock . . . . . ...... .
Port A rthur • .. ..•. .. •
San Ang elo . . . .... . .
San Antonio ... .. . ...
Tex orkana 2 •• •••••• •

Tyl er ..... .. . .. .....
Waco ... . . . . . . . . ...
Wichita fall s .. . . . ...

10tol-24 cities .... , ... $ 9,22 6,044
1

March 30,
)960

April 29,
1959

Loan s and discounts. • . .. ... . ...•. . .•....
Unite d States Gov ernm ent obligations ..... .
Other se curiti es ...... .. .. .. . . ....•.... .
Rese rves with Fod era l Res erve Bank ..•• . ...
Ca sh in vault e . ... ..... ..... .... .. . . . . .
Balanc es with banks in th e United Stat es ....
Balanc es with banks in foreign countriese . ...
Ca sh items in proc ess of coll ection • •...... .
Oth er a ssets e ... . .... . ... .. .... . . •• . . ..

4,816
2,472
850
925
149
893
2
566
273

4,718
2,457
856
933
143
945
2
475
281

4,593
2,665
831
953
142
954
3
507
241

TOTAL ASSETse .....................
LIABILITIES AND CAPITAL ACCOUNTS

10,946

10,810

10,889

Demond d eposits of banks • . . .. .. .. ... . ..
Oth er d e mand d eposits.......... . .. . ... .
Tim e d eposits ..... •.• . . .. ....••...... . .

971
6,511
2,180

1,014
6,385
2,186

1,029
6,654
2,153

Total deposits ........ .. ... .. ...... ..

Other lIabllitles e . . . ......... . ..........

Total capitol accounts e ........ .. .. .. ....

9,662
177
182
925

9,585
138
165
922

9,836
67
91
895

TOTAL LIABILITIES AND CAPITAL
ACCOUNTSe .•...•.. . ...••... ••• ..

10,946

10,810

10,889

It em

Percent
chang e from

Area

April 27,
1960

Demand d epositsl

- 7

3

59,218
112,91 2
146,686 .
99,140
107,777
19,156
1,116,624
167,961
360,351
64,343
1,261,446
22,225
114,38 2
4 1,588
42,240
370,449
16,946
58,300
67,196
97,693
$ 4,747,054

23.5

25.1

ASSETS

Borrowing se • . ..• . .... ......... , ...... .

GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
Eleventh Federal Reserve District
(Ave rag es of dally flgures. In millions of dollars)

22 .1

De posits of indi vi dual s, partn e rships, and co rporations and of states and political

subd ivision s.
:J Th ese figures includ e onl y t wo ban ks in Te xarkana, Texas. Total debits for all bonk s
in Tox arkana , Texa s-A rkan sas. includ ing on e bank located in the Eig hth Di strict

amounted to $52,389,000 for th o month of April 1960.

'

Decemb er. •

1960: January ...

(In thousends of barre ls)

February ..
March .. . .
Chang o from

April
1960'

March
1960'

April
1959'

2,934.4
Texa s .. . ... . .. . .. .. .... 2,549.7
Gulf Coast ... .. .......
467.5
W est Texa s ... .... . ... 1,145.0
Ea st Te xa s (prope r) •. ...
131.8
Panhandle .. . .. . . .. ...
108.2
Rest of State .... .. . . . .
697.2
Southeaste rn N ew M ex ico . .
270.3
Northern Louisiana .. .... ..
114.4
OUTSIDE ELEVENTH DISTRICT. 4,076.3
UNITED STATES ...... .. .... 7,010.7

3,064.0
2,680.6
480.1
1,207.6
139.4
109.3
736.2
268.7
11 4.6
4,039.7
7,103.7

3,211.7
2,837.2
535.4
1, 263.4
154.2
109.6
774.6
251.8
122.7
4,044.5
7,256.2

Are a

elEVENTH DISTRICT ..... .. .

SOURCES :

1

March

1960
-4.2
- 4.8
-4.2
- 5.2
-5.5
-1.0
-5.3
.6
-.2
1.0
- 1.3

-8.6
-10.1
-12.7
-9.4
-1 4.5
- 1.3
-10.0
7 .3
-6.8
.8
-3.4

Estimated from Am e dcon Pe trol eum Institut e we ekl y report s.

VALUE OF CONSTRUCTION CONTRACTS AWARDED

Resid ential .. . ......

All oth er ...........
UNITED STATES .. . . . ..
Resid ential. ... . . . ..

All other ... . . .... . .

12

1,916
2,151
2,099
2,111
2,145
2,171
2,190

1,033
1,133
1,077
1,081
1,089
1,097
1,105

883
1,018
1,022
1,030
1,056
1,07 4
1,085

NUMBER
from
4 months,
April
4 mos.
April
4 mos.
Mar. Apr.
1960 from
Area
1960
1960
1960
1960
1960 1959
1959
ARIZ~
ONA-------------------------------------------------Tucson........
LOU ISIANA

895

3,337

Shreveport ... •

496

1,943

2,001

8,414

136
369
318
286
55
2,620
665
901
132
1,308
306
222
1,197
270
482

6 26
1,260
1,100
969
250
7,847
2,331
2,658
405
4,752
1,080
658
4,362
966
1,108

2,045
2,889
4,640
1,390
1,029
12,844
4,243
5,400
283
14,053
4,421
542
5,389
821
3,125

6,685
12,831
15,257
4,404
4,319
47,601
15,458
17,275
806
70,964
16,412
4,122
19,157
7,226
7,820

Janua ry-March

Total- 17 cities .. 10,658

35,652

$67,625

$271,494

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

March
1959

1960

1959

Dallas ..... . . .
EI Paso • .. .. ..
fort Worth .. ..

331,61 2
157,783
173,8 29
3,046,345
1,293,607
1,75 2,738

272,423
125,573
146,850
2,221,631
980,209
1,241,4 22

389,188
178,617
210,571
3,339,934
1,540,722
1,799, 2 12

863,147
395,135
468,012
7,457,691
3, 199,669
4,258,02 2

994,182
488,301
505,081
7,949,605
3,627,761
4,321,844

Galv eston ..•..
Houston ••• .. .

6:1960

3,825
4,003
4,148
4,172
3,980
3,878
3,863

Country
banks

Percent change ___

1960

BU ,SINESS REVIEW

Reserve
city bonks

Total

April 1960

February

SOURCE : F. W. Dodg e Corporation .

3,677
3,797
3,904
3,912
3,640
3,661
3,640

Country
banks

=============================
VALUATION (Dollar ameunts In thousands)

March
1960

1 Ari zona , Loui siana, N ew M ex ico, O klahoma, and Tex as.

7,502
7,800
8,052
8,084
7,620
7,539
7,503

Rese rye
city banks

BUILDING PERMITS

TEXAS
Abil ene • ......

(In thousands of dolle rs )

fiVE SOUTHWESTERN
STATES ' ... .. .... ..

April ..... .

Total

Apr il
1959

~ United States Bureau of M ines.

Area and type

Doto

=

TIME DEPOSITS

GROSS DEMAND DEPOSITS

1958: April ......
1959: April ...•..

DAILY AVERAGE PRODUCTION OF CRUDE OIL

-

e-E stimate d.

Lubbock . •. ...
Port Arthur ... .
San Antonio .. .
Waco ... . ... .
Wichita Falls. .

$ 2,510

$ 12,743

-17

87

-24

-13

_12

34
-34
0
-18
-25
10
-24
5
16
-40
-4
-25
-3
-78
46

-7
-12
-8
-23
-58
-27
-26
14
0
-27
-16
- 28
-23
-42
357

_31

-17 -18

_10

-12

_2

_21
_23
_41
_27
_27

7

_22
_2

_14
57
_14
44
66

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