Full text of Review (Federal Reserve Bank of Dallas) : July 1962

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BUSINESS
REVIEW
JULY 1962
Vol. 47, No.7

DEVELOPMENTS AT SOUTHWESTERN
TRUST DEPARTMENTS IN 1961
The expansion in bank trust department activities in the
Southwest since the Second World War has been quite significant.
In 1945, trust department earnings at all member banks in the
Eleventh Federal Reserve District totaled $1.2 million; after rising
to $2.9 million by 1950, such earnings reached almost $11.0
million in 1961. The importance of a trust department to the
parent bank cannot be measured, however, simply by the growth
in earnings of the department or by the contribution its operations
make or fail to make to bank earnings. Rather, to tell a more
complete story, consideration must also be given to the other
banking business and good will accruing to the bank as a result
of its trust department activities.
The principal services which a trust department performs for
individuals usually involve settling estates of decedents and administering personal trusts, although, in recent years, there has been
a noteworthy growth in personal agency functions, as well as in
the handling of pension and profit-sharing trusts. The trust
department may serve a corporation as trustee under a corporate
mortgage or other debt instrument and perform a variety of
corporate agency functions, such as fiscal agent, transfer agent,
or registrar.
Because of the diverse nature of the properties which it is
called upon to manage, a modern-day trust department must
maintain a highly competent staff capable of performing the many
specialized functions associated with fiduciary activities. A large
trust department probably enjoys some advantage in obtaining

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)

ANNUAL TRUST DEPARTMENT
EARNINGS AT MEMBER BANKS

of the trust department to bank earnings is becoming
more significant in the region. Trust department activities in the Eleventh District tend to be heavily
concentrated in personal accounts, largely reflecting the
importance of personal trusts. In recent years, however,
corporate accounts have shown noteworthy growth.

7001 - - - -if - - - - - I - - -- t'\
Trust Department Income
5001 - - - - - l - - - - I - - -

- 1 - - - - - 1 500

---1--------:
",,"

,.-"

3001t-----t-------;,........,I~---'---,:
,,'·roo::'~
" --~ 300
1--_ _ _ /"- - -

-- -------~-- .....-.. ------'

~, ... ''''-UNITED

STATES

10~'.,45~.::....--~--::
19L
49~~~...J
1953~~~J
I95-7~~....o....,..J
19~?0
SOU RCE: Fe d era l Rller",

~.

the needed personnel, and this is one of the factors encouraging the growth of trust operations at
larger banks.
A detailed picture of bank trust department developme~t~ ~n ~e Southwest may be obtained from the annual
survey ~f . trust department income and expenses at
selected banks'in the Eleventh Federal Reserve District.
These surveys have been conducted each year since
1957 by the Federal Reserve Bank of Dallas in cooperation with tj1e Trust Section of the Texas Bankers
Ass?ciation. The latest survey covered bank trust
department operations at 47 of the 114 banks in the
District · reporting trust earnings in 1961. The trust
dep~riinents in the sample accounted for nearly 92
percent of total trust department earnings at District
member banks during the year. The following discussion is based on the data provided by the survey.

Earnings from personal accounts during 1961, as in
the past, represented close to 80 percent of District
trust department earnings. Personal trusts were the
source of about 43 percent of total earnings, while the
share of income from settlement of decedents' estates
was approximately 18 percent. Pension and profitsharing trusts and personal agencies each contributed
11 percent of total earnings. In the corporat~ area,
which historically accounts for about 20 percent of
total trust department earnings, the income provided
by corporate agencies during 1961 represented 14
percent of the total, and the contribution of corporate
trusts was about 4 percent.
During 1961, the total income of 44 trust departments participating in both the 1960 and the 1961
surveys rose over 12 percent, the largest increase
recorded in recent years. With income from personal
trusts increasing nearly one-fifth, earnings from total
personal accounts advanced 13 percent, or more than
double the gain in 1960. The 12-percent rise in income
from corporate agency activities was partially offset by
a reduction in the corporate trust area, and earnings
from total corporate accounts advanced 8 percent,
contrasted with the 27 -percent gain in the previous year.
MEMBER

BANK

EARNINGS

ELEVENTH FEDERAL RESERVE DISTRICT

Altbpugh the many small trust departments throughout the District perform valuable services for their
customers, the heavy volume of trust services in the
Southwest, as in the Nation, is concentrated at the
larger banks. During 1961, almost 85 percent of the
earnings of District bank trust departments was accounted for by 21 banks located in the principal cities
in the Southwest. In fact, five banks were responsible
for over 37 percent of total trust department earnings
in the Eleventh District.
As trust department activities have grown in
importance in the Southwest, total earnings of the trust
departments have moved steadily upward at a faster
rate than total bank earnings. Thus, the contribution
BUSINESS REVIEW
2
7:1962

! - - - - - 1 300

1957
SOURCE : EiH!9l

8J..u.!!.i tlI!.J..I.gJln.

1959

TRUST DEPARTMENT INCOME. BY TYPE
OF ACCOUNT. AT 47 COMMERCIAL
BANKS. 1961
ELEVENTH FEDERAL RESERVE DISTRICT

PERSONAL TRUSTS

AGENCIES 11 . 2 'r.

CORPORATE

TRUSTS 3. 5%

~CORPORA.TE

AGENCIES

13.7 %

·It is interesting to note that, while total member
bank earnings in the Eleventh District leveled off in
1961, trust department earnings rose at a faster rate
than in other recent years. A lack of vigor in loan
demand during 1961 depressed bank earnings from
commercial operations, but the recovery in economic
activity last year materially increased personal incomes
and very likely encouraged the establishment of new
inter vivos (living) trusts. This development would
account for the increase in the number of personal
trust accounts and the attendant expansion in income
from this source during 1961.
Earnings from personal agencies rose 15 percent at
the District trust departments last year, indicating a
continued expansion in requests for trust departments
to perform numerous investment custody and advisory
services. The demand for this type of service has been
especially pronounced at the smaller survey banks,
Where well over 100 new agency accounts were established during 1961. To meet this growing demand,
many of the smaller trust departments have engaged
investment advisers on a full- or part-time basis.

somewhat misleading. It will often take many months
to close a large estate, but the fee may be paid at one
time; thus, the income from this source may expand
sharply during one year and then show an equally sharp
decline the next. The variability in this type of trust
department activity is illustrated by comparing the
substantial rise in the number of these accounts during
1961 with the noteworthy decline in 1960. It appears
that the better over-all earnings performance on the
part of trust departments receiving total commissions
and fees of $100,000 to $300,000 is explained by the
fact that they experienced a net increase in earnings
from estates while banks in the other size classifications
did not.
Earnings from corporate accounts in 1961 failed to
continue growing at the unusually fast rate shown
during 1960. Indeed, 1961 earnings from corporate
trusts actually declined almost 6 percent. The decline
was accounted for principally by the larger survey
banks and partly reflected the smaller number of bond
issues floated by southwestern corporations during
1961. Since the larger banks often act as trustees for
issues of corporate notes and bonds, earnings from this
source of trust income are similarly affected when the
volume of financing by corporations is reduced.
The expansion in corporate agency earnings during
1961 was only about one-half that recorded in the
previous year, with the slowest rate of growth. occurring at the largest banks. These developments in the
corporate agency area may appear to be somewhat
surprising in view of the sharp increase in the volume
of stock and bond trading on the organized exchanges.
TRUST DEPARTMENT INCOME
AT 44 COM MERCIAL BANKS*
ELEVENTH

•

RESER VE

DISTRICT

ESTATES

II

PERSONAL TRUSTS
PENSION AND
PROFIT -SHARING
TRUSTS

PERSONAL AGENCIES

Pension and profit-sharing trusts continued to show
the upward trend that has characterized this activity for
many years. The expansion in earnings from pension
~nd profit-sharing trusts reflects the growing interest
In such trustee-type arrangements by corporations and
the success of bank trust departments in developing and
administering this class of business.
Income from settlement of decedents' estates is rather
Volatile, and movements from year to year may be

FEDERAL

TOTAL
PERSONAL ACCOUNTS
CORPORATE TRUSTS
CORPORATE
AGENC IES
TOTAL CORPORATE
ACCOUNTS
TOTAL INCOME

- 10

-5

0

+5

+10

+ 15

+20

PERCENT CHANGE. 196 1 FROM 1960

*

Bonks " hlc: h re ported In both 1960 and 196 1 l urve y• .

BUS I NES S REVIEwl
7:1 96 2

31

Part of the explanation probably lies in the fact that
some southwestern corporations were listed on the
organized exchanges during 1961. As such firms are
listed on the exchanges, the proportion of stock-transfer
operations performed by trust departments in the region
usually declines substantially. Also, there were some
mergers of southwestern corporations with firms in the
East, which tended to reduce the corporate agency
services performed by District banks. Moreover, the
earnings picture is understated somewhat because fees
for corporate agency work performed in 1961 and not
paid until 1962 were unusually large.
Trust Department Expenses

During 1961, total trust department expenses grew
at about the same rate as in previous years and showed
the identical percentage gain recorded in 1960. Direct
expenses were up about 13 percent, but overhead costs
declined slightly.
The principal expense items for the trust departments
were salaries, wages, and other employment costs. At
all banks in the survey, these employment costs ranged
between 65 percent and 70 percent of total expenses.
Officers' salaries tended to be a relatively higher proportion of total employment costs at the smaller trust
departments, partly reflecting the greater amount of
corporate business at the large banks. The management of corporate accounts, especially corporate
agencies, permits the utilization of more clerical help
and less supervisory personnel. Further examination
of employment costs also reveals that the larger banks
tended to spend a greater amount on such nonsalary
TRUST DEPARTMENT EXPENSES
AT 47 COMMERCIAL BANKS. 1961
ELEVENTH FEDERAL RESERVE DISTR ICT

OVERHEAD 11 .1
PLOYEES' SALARI ES
WAGES 30.9 %

ALL OTHER DIRECT
EXPENSES 15.0 %

TRUST DEPARTMENT EXPENSES AT 44 COMMERC IAL BANKS
1961 ANp 1960'
Eleventh Federal Reserve District

Item
Salaries and wages
OfAcers .............. ................
Employees •• ..••••..••.• • • . •...•••..••
Pensions and retirements•• •• • •••••••••••• ••
Personnel Insurance •••••••••••••••••••••••

Other ex p enses related to salaries ••• • •.••••
Occupancy of quarters •••••••• • •••••••••••
furniture and equipment .••.•••••••••.•••••

Stationery, suppli es, and postage •••••• .• ••..
Te lephone ond telegraph . ...... . ........ ..
Advertising ••• •..•••...•••••.•••••..•••••

Directors' and trust committee fees •• • ••• •• .. .
l egal and professional fees • .. .... ....• . . ..
Periodicals and Investment services •••••••••.•
Examinations •• •• •••••••••••••••••••• • •••

Other direct expenses •••••••.•• •• .• ••• • . ••
Total direct expenses • • •• •.••• ••••.• ••••
Overhead .. .............. .. ............

Total expenses •••• • ..• • ••.. •••• ; •.•.• ..

Percen t
change

1961

1960

$2,794,601
2,986,09 1
485,447
84,835
146,669
629,592
213,740
286,894
101,736
143,992
48,621
49,860
70,988
45,092
488,709

-$8,576,867

$2,456,676
2,763,697
468,696
66,855
153,872
504,228
173,670
228,466
78,302
161,077
49,526
53,395
57,356
37,044
371,410

-$7,624,270

13.8
8.0
3.6
26.9
-4.7
24.9
23.1
25.6
29.9
-10.6
-1.8
-6.6
23.8
21.7
31.6

1,079,384

1,082,785

12.5
- .3

$9,656,25 1

$8,707,055

10.9

1 Da ta are derived from the reports of 44 trust depar tm ents which participated in

both the 1960 and the 1961 surveys.

employment items as retirement plans and personnel
insurance.
Outside of employment costs, the only other direct
expense of great significance was that for occupancy
of quarters, which accounted for 4112 percent to 7
percent of total trust department costs at the survey
banks. The remaining direct expenses were relatively
unimportant as a proportion of the total when considered individually but, taken together, represented
about 15 percent to 20 percent of total expenses.
Overhead costs ranged from 8112 percent to 13:YZ
percent of total expenses in 1961.
The rise in trust department expenses from 1960 to
1961 mainly resulted from higher employment costs,
although expenses for occupancy of quarters and for
furniture and equipment also moved higher, patticularly
at the larger banks. An exception to the ' rise in employment costs occurred in "other expenses related to
salaries," which declined somewhat at the largerI banks.
This development, however, resulted almost exclusively
from the experiences of a few banks and, therefore,
should not be generalized. The larger banks have evidenced some concern in recent years over the .growth in
the costs of obtaining trust business. An attempt was
made in 1961 to decrease such expenses, as the larger
banks noticeably reduced their advertising outlays.
Net Income of Trust Departments

o~~~~;~:SLO~~E"I~T

r BUSINESS

Total trust department expenses for the banks surveyed rose about the same as in the previous year, but
income expanded more than in 1960. Nevertheless,
net income before income taxes in 1961, at 2 percent
REVIEW

..

of total trust income, was only slightly above a year
earlier. The failure of net trust earnings to move
substantially higher reflected the sharply reduced rate
of growth in income from corporate accounts and a
continuation of the rise in expenses. The increase in
earnings from personal accounts could only partially
compensate for these developments.
Of the 47 participating banks, 21 showed net losses
from trust department activities in 1961. Less than
one-half the banks in the smallest size classification
showed a profit, and the same was true of banks in the
largest size classHication. The fact that over one-half
of the large banks suffered losses can be principally
explained by the reduced level of earnings from corporate activity; the losses recorded by the smaller banks
may reflect the sharp expansion in the number of personal agency accounts, which are usually rather costly
to administer.
. A number of banks allow deposit credits in recognition of the fact that the trust operations of a bank
result in increased deposits for its commercial departments which can be utilized to expand over-all bank
earnings. Of the 47 banks surveyed, 23 allowed such
deposit credits at interest rates ranging between 2.3
percent and 3.3 percent. After taking this deposit
credit into account, the earnings picture is noticeably
improved. Indeed, none of the largest banks would
show net losses if the deposit credit is allowed, and
profits would be substantially improved for all sizes
of survey banks. Even with the deposit credit, however,
some of the smallest banks would continue to show
unprofitable trust operations.
An analysis of the data supplied by 16 large trust
departments which were able to distribute income and
expenses between personal accounts and corporate
accounts confirms earlier observations regarding the
greater relative return available from corporate acCounts. After allowance was made for deposit credit,
the net income derived per corporate account was
almost double that obtained from a personal account.
This income margin reflects the expansion in deposits
which results frequently from corporate trust activities
and, to a somewhat lesser extent, from corporate
agency business.
The in£ormation gathered from these 16 large banks
indicates a lower officer-employee ratio in handling
corporate business. There were almost seven employees
per officer servicing corporate accounts at these banks
but only about three employees per officer servicing

personal accounts. The distribution of expenses between corporate accounts and personal accounts reveals
that 30 percent of total expenses attributable to personal accounts was due to officers' salaries while the
comparable figure for corporate accounts was only 17
percent. Since the potential return is greater in handling
corporate trusts and corporate agencies, the large
bank trust departments vigorously compete for this
type of business.
The survey data reveal that there are certain similarities among the banks showing a net loss from trust
operations. Generally, banks showing unprofitable
results were those reporting a greater proportion of
income derived from personal agency accounts. In the
smaller trust departments, almost all the agency business involved personal accounts. Because the management of personal agency accounts usually requires a
considerable amount of time from high-cost personnel
and the expenses entailed are quite large in relation
to the commissions and fees obtained, these accounts
often prove to be unprofitable. With regard to the
larger trust departments, however, the banks showing
net losses received much greater deposit credits - an
indication that much of their agency business probably
involved corporate accounts. This type of service is
also relatively expensive but may be quite profitable
when the deposit credit is considered.
A significant number of the banks included in the
survey had considerable difficulty in allocating their
trust department expenses and, in some cases, in identifying the sources of their income. While some of the
smaller banks experienced such difficulty, a few of the
large banks also had problems along these lines.
While the proportion of total bank earnings accounted for by trust departments is still relatively small
in the Eleventh District, the faster rate of growth in
trust department income tends to emphasize its importance. Moreover, this more rapid growth in trust
department earnings does not take into account any
deposit credits or other credits for services performed by
the trust department for the parent bank.
N. GRIGGS
Financial Economist

WILLIAM

A group of detailed statistical tables compiled from
the survey of 1961 earnings and expenses of commercial bank trust departments in the Eleventh Federal
Reserve District may be obtained upon request.

BUSINESS REVIEW 'I
7:1962

'51

REV I 'EW

BUSINESS

BUSINESS, AGRICULTURAL, AND FINANCIAL CON'DITIONS

The Texas industrial production
index and nonagricultural employment in the five southwestern states attained record
levels during May. Although
construction contracts in the five states declined during April, cumulative contracts for the first 4 months
of 1962 were at an all-time high.
Eleventh District petroleum activity showed mixed
trends during May and early June. Crude oil production decreased slightly in May but was little changed
in early June. Refinery activity strengthened, and indicators of drilling operations expanded, with both
total well completions and total footage drilled rising
significantly. The number of rotary rigs active in the
District, however, declined moderately in May.
Agricultural conditions in much of the District were
substantially improved by drought-breaking rains
in late May and early June. Plantings of cotton and
sorghums are behind schedule, but wheat combining
is ahead of a year ago. Winter wheat production in
the District states is estimated to be moderately

Although sales at Eleventh
District department stores rose
to a record level during the
Mother's Day buying season, the
sales pace slackened sharply
thereafter; and for the full month of May, daily average sales showed less than the usual seasonal increase
over April. As a consequence, the seasonally adjusted
index of department store sales declined from 187 percent of the 1947-49 average in April to 180 in May,
which compares with 160 for May last year.
The unadjusted dollar volume of District department
store sales for May advanced 9 percent over April and
12 percent over a year earlier. In addition to the strong
Mother's Day trade, sales rose because there were two
more business days in May than in April. Sales in the
first half of June continued above a year ago, gaining

I

BUSINESS REVIEW

16

7:1962

below the May 1 forecast. Summer grazing prospects continue on the upgrade throughout most of
the Southwest.
Seasonally adjusted sales of District department
stores declined during May but continued well above
a year earlier. Cumulative weekly sales through
June 16 were 6 percent greater than in the comparable period in 196 i. The index of department store
inventories, seasonally adj'usted, rose from 198 in
April to 202 in May, compared with 180 in May 1961 .
Registrations of new cars in four major Texas
markets in May rose 6 percent from a month earlier
and were 29 percent above May last year. During
the first 5 months of this year, registrations were 38
percent greater than in the same period of 1961.
During the 5 weeks ended June 20, the weekly
reporting member banks in the District showed increases in loans, investments, and demand deposits
but a decrease in time and savings deposits. Free
reserves rose significantly at reserve city banks but
declined moderately at country banks during May
and early June.

approximately 7 percent. Cumulative weekly sales for
the year through June 16 were 6 percent higher than in
the corresponding period in 1961.
The index of District department store inventories,
adjusted for the usual seasonal fluctuations, has shown
an upward trend since the beginning of the year, rising
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
Eleventh Federal Reserve District
(1947. 49

= 100)

SALES (Dally average)
Date

Unadjusted

1961, May ..••..•••.
1962, March •• • ••..•.
April •• • •... '"
May ...• • •...•

160
158
178
180

rp -

Re vised .
Preliminary.

Seasonally
adjusted
1'60
181
187 ,
180

STOCKS (End of month)
Unadjusted
178r
207
206
200p

Seasonally
adjusted
180r
197
198
202p

from 197 at the end of January to 202 in May. This
compares with 198 for April this year and 180 for
May 1961.
DEPARTME NT STOR E SALE S
(Percentage cha ngo i n retail va l ue)

Ma y 1962 from
April
1962

Area

Totol Eleve nth District. •• •....•
Corpus Christi • ••• • • • ... • •... •

Houston • • •••••••••••••• • •••

San Antonio ••• • .. • ••.••.•

12
- 10
11
19
34
10
13
20
8
10

9
-5
9
6
12
7
11
13
13
12

Da lla s • • • .• • •.. • ••. ..• ••• .. •
EI Paso •..• • •.• •• ...•• • .• •• •
Fort Worth .. . .. ... .. . .. .. . . .
'0 • •

Shreveport, La • • ••.. . • •. .. . • •
Wa co • • . •.• • • ...• • • • •.• • • • .
Other cities •••••.• •• ••• • ••. • •

5 months,
1962 from
1961

May
1961

-3
7
9
17
12
9
14
8
6

needed in the Southern High Plains, Trans-Pecos, and
southern sections of Texas and in New Mexico.
Planting of the District's 1962 cotton crop is runmng
behind schedule. Heavy rains, hail, and blowing sand
have delayed seeding in the Northern High Plains and
Low Rolling Plains. Many Southern High Plains dryland areas were missed by the June rains, and plantings
are late for the season. In most central, eastern, and
coastal areas of Texas and in northern Louisiana, wet
fields have hampered c:ultivation. Cotton in the Blacklands is squaring, and some early blooms are showing.
The crop in the Lower Rio Grande Valley of Texas is
opening; the season's first bale of cotton was ginned
on June 9.

Sorghum plantings in the Southwest are behind a
New car registrations in four major Texas markets year ago for many of the same reasons which have dein May rose 6 percent over April and 29 percent over layed the cotton crop. The crop is heading in the BlackMay 1961. Cumulative registrations in the first 5 lands, and early sorghums are in the soft-dough stage
months of this year were 38 percent more than in the in south-central counties. In the Coastal Bend, sorghums
same period last year. Among the individual markets, are turning color rapidly.
Dallas reported gains of 19 percent over April and 25
Although wheat harvest in the Texas Panhandle was
percent over May 1961. The Houston market, although delayed by rains and hail during June, combining of
showing a 7-percent decline from April, reported a the District's crop is considerably ahead of a year ago.
26-percent rise over May last year. May registrations
Based on June 1 conditions, winter wheat production
in San Antonio and Fort Worth were 8 percent and
in the District states is estimated at 142 million bushels,
21 percent, respectively, higher than in the previous
or 5 percent below the month-earlier forecast and 31
month and, compared with a year earlier, were up 40
percent less than the 1961 outturn. Compared with. the
percent and 43 percent.
preceding month, output decreases were repoited for
Oklahoma
and New Mexico, but Arizona showed an
Crop and pasture prospects
throughout much of the District increase; indicated production in Texas and Louisiana
were brightened by drought- was unchanged. The national winter wheat crop is estibreaking rains during the latter mated to be 5 percent below the May 1 forecast and 21
part of May and early June. percent less than the 1961 outturn.
However, hail, strong winds, and torrential rains
Full-scale planting of peanuts is under way in the
hindered crop planting and wheat harvesting in the important Cross Timbers and Blacklands areas. AdeTexas Panhandle and necessitated replanting of sub- quate planting moisture is available in these regions,
stantial acreages of cotton and sorghums. Moisture is but precipitation is needed for growth of early peanuts
in south Texas. Oat harvesting is well advanced in
WINT ER WHEAT
the District, and more than three-fourths of the barley
crop
is out of the field. Some early rice is heading in
ACREA G E
(In tho usa nd ~ of ac res )
Louisiana and Texas. Harvesting of hay is active in
PRODUCTIO N
Fo r
eastern, central, and coastal areas of Texas; and second
(In thousa nd s of bushe ls)
harvest
Ha rvested
Cro ps of
cuttings of alfalfa have been made in the Texas High
Cro p of
Crop of
Crop of
Crop of
Cro ps of
195 1· 60
196 1
1951·60
1962 1
Area
1962
196 1
Plains and in New Mexico.
Oklahom a ••• •••
Texa s . .• ••.. • • •

25
31
215
3,833
2,76 8

26
35
276
4,6 18
3,690

47
' 41
156
4,484
2,697

1,075
682
4,5 15
80,493
55,360

1,11 8
840
8,004
11 0,832
84,870

1,567
'750
1,9 17
75,225
38,874

Total ... .... ..

6,872

8,645

7,425

142, 125

205,664

11 8,333

Arizona •• •• •• • •

louisi ana • ••.. . •
New Mexico • • •• •

1 Ind ica ted June 1.

Short·ti me a ve rage.
SOU RCE, Un ited States Deportment of Agric ult ure .

!!

Watermelons and cantaloupes were shipped in
volume from the major south Texas commercial vegetable areas during June. Supplies of tomatoes are
moving to local markets in central and east Texas, and
gathering of sweet corn is under way in the latter area.
BUSINESS REVI EW

7:1962

I

71

CONDITION STATISTICS OF WEEKLY REPORTING
MEMBER BANKS IN LEADING CITIES

CASH RECEIPTS FROM FARM MARKETINGS
(Dollar amounts In thousands)

Eleventh Federal Reserve District
January-March
1962

Area

Texas • •••• • ••.•••••••••••• •

101,338
71,870
41,272
126,159
476,827

Total ... . . .... . ..... . .. .. .
United States ............. .

$ 817,466
$7,578,108

Arizona •• •• • ••••• ••••• ••• ••
louisiana ••• ••• ••• • ••••••• ••
New Mexico .. • .• ••••.•• .••••
Oklahoma • •••••••••••••••• •

$

1961
90,912
65,245
34,109
116,302
413,699

11
10
21
8
15

$ 720,267
$7,586,200

13

$

o

SOURCE , United States Departm en t of Agriculture.

Wet fields have delayed onion harvest in north Texas,
but digging of Irish potatoes has progressed rapidly in
the San Antonio area. High Plains carrots for summer
and fall harvest are in good condition.
Summer grazing prospects continue on the upgrade
throughout most of the District. Plains, central, and
coastal areas of Texas received additional moisture at
mid-June, and most stock tanks are full. On the other
hand, ranges are extremely dry in sections of New
Mexico and in southern and Trans-Pecos counties of
Texas. Shipping of lambs is under way in the Edwards
Plateau area.
Loans, investments, and deposits
advanced at the Nation's weekly
reporting member banks during
the 5 weeks ended June 13, with
the stronger deposit picture dominating the changes. The money market exhibited an
easier tone during the period, as reserve pressures eased
at central reserve city banks and free reserves moved
moderately upward. Dealer holdings of Government
securities receded until the final week of the period.
Considerable demand for Treasury bills developed from
both bank and nonbank sources. However, the auction
rate on 91-day Treasury bills climbed from 2.646
percent on May 17 to 2.721 percent on June 21, partially because of the addition of $200 million to each
Treasury bill auction during the first 3 weeks of June.
The rate on Federal funds moved downward, especially
during the middle portion of the 5-week period.
The market for intermediate- and long-term Government securities showed a firmer tone during the 5 weeks
ended June 13. Declines in prices appeared early in
the period, as investors appraised such widely varying
factors as the developments in southeast Asia, gains in
current business indicators, and the congestion in the
market for municipal bonds. Government security
prices later strengthened, largely because of weakness

'I' B U'S IN ES S

il·
8

REVIEW

7:1962

(In thousonds ' of dollars)

Perc ent
change

June 20,

May 16,

June 21,

1962

1962

1961

1),745,282
41,750

1,742,512
49,539

1,516,808
35,589

16,277
65,735

12,274
65,169

792
43,343

2,442
1J75,373
74,321
133

2,230
173,643
62,884
151

4,484
218,488
40,880
30

'89,922
IJ 86,253
259,965
'843,927

90,521
170,885
252,992
810,522

94,189
144,978
219,199
804,280

Gross loans •••..•••••..••••••• ' •••••••.•
less reserves and unallocate d charge·offs ••

3,501,380
61,611

3,433,322
62,417

3,123,060
56,534

Item
ASSETS
Comm ercial and industrial loans •.• ••...• • •.. .
Agricultural loans •••••.••••.•••..•••••.•••
loans to brokers and d e alers for purchasing
or carrying :
U. S. Government securities •••.•••..•.•.•..
Other securities ••.•••.•••• ••• •••.• .... . •
Other loans for purcha sing or carrying :
U. S. Government securities •••••••.••....•.
Othe r securities •••.•••••••••••••...•.•..
loans to domestic commercial banks •.•••......
loans to foreign banks ••••••• .. • • •.... . .•..
loans to other financial institutions:
Sales finance, p ersonal finance, etc ......... .
Savings banks, mtge. cos., ins. cos., etc .•••• ••
Real· estate loans ••.• •• ..••••••..•••• •••• ••
All other loans••••••••••••••••••••••••••••

Net loans ••.•••• •••• ••• ••• •••••••••••••

3,439,769

3,370,905

3,066,526

Tre a sury bills •••..••..•••.••••.•••••..••••
Tre asury certificates of ind e bte dness • •... •••• •
Treasury notes and U. S. Government bonds,
including guaranteed obligations, maturing:
Within 1 year •••.• ••.• •••••••..••••• •••
After 1 but within 5 years ••• •• •••••••• ••• •
After 5 years .......................... .
Other securities ••••• . ••• ... • ••• •• • ••••• • • .

110,399
58,999

93,320
66,204

175,002
71,554

265,957
654,731
445,063
465,439

269,526
676,463
443,847
438,O~2

210,044
630,194
457,530
393,581

Total investments •••........••......•.•••

2,000,588

1,987,402

1,937,905

Cash Items in process of collection •••• • .•• ••• •
Balances with banks in the United States ••• .• • •
Balances with banks In foreign countries .•••...
Currency and coin ••.••••••••• • •••• •. .. .. .•
Re serves with Federal Reserve Bank •••.. ...•..
Other asse ts ••••••..••••..•• •••... . .......

576,469
530,832
2,558
59,277
594,071
200,423

603,531
478,130
1,948
58,384
565,498
197,898

501,896
516,186
2,140
56,029
612,302
184,407

TOTAL ASSETS . • • • • • • • • • • • • • • • • • • • • • •

7,403,987

7,263,696

6,877,39 1

LIABILITIES AND CAPITAL ACCOUNTS
Demand deposits
Individuals, partnerships, and corporations •••
Foreign governm ents and official institutions,
central banks, and international institutions ••

3,068,576

2,976,248

2,952,882

States and political subdivisions •..••••..•••
Banks in th e United States, including mutual
savings banks ••••..•• ••• .•••..•••. ••••
Banks in fore ign countries •• • ••••••••••••..
Certified and officers' checks, etc •. • •••••• • .

3,045
173,535
231,569

3,245
161,628
277,552

. 2,622
245,632
189,817

1,106,142
14,326
54,708

1,010,792
14,064
60,403

1,032,632
11,278
56,158

Total demand deposits ........ .. .... . .. .

4,651,901

4,503,932

4,491,021

922,482
697,377

906,234
692,757

777,190
544,209

2,507
6,617
271,113

3,007
6,617
304,535

7,102
296,927

6,567
2,350

6,556
2,150

8,732
900

United Statcs Governmo'n t •••• • • ••••••••• •

Time and savings deposits
Individuals, partnerships, and corporations
Savings deposits ••••••••••..•••.•••..•
Othe r time deposits • •.• •• ••••••••••.•••
Fore ign governments and official Institutions,
ce ntrol banks, and international institutions ••
U. S. Government, Including postal savings .••
States and political subdivisions . •• . •• .. ••••
Banks in the Unite d States, including mutual
savings banks ••••.•• ••..• ••..••••.• • ••
Banks in foreign countries •• •••.• ••..••••.•

6

Total time and savings deposits • • ••..••••

1,909,013

1,921,856

1,635,066

Total deposits •••••• ••••..••••••••••
Bills pa yable, rediscounts, etc ••••••••••••••••
All other liabilities •••••••• •• ••• ••• •••••••••
Co pita I accounts ••••••••••••••.•••••••••••

6,560,914
102,150
107,356
633,567

6,425,788
101,600
105,538
630,770

6,126,087
71,300
93,441
586,563

TOTAL LIABILITIES AND CAPITAL ACCOUNTS

7,403,987

7,263,696

6,877,3il,

IBecause of recla ssiflcation s, thesa data ora no. strictly comparable with year.earlier
data.

in the stock market, continued discussions on the lack
of real strength in the outlook for capital spending, and
the feeling that Treasury financing operations in the
near future would be confined to the short-term area.

i
I

I

Under the weight of a,relatively large amount of unsold
securities, the municipal market weakened considerably
during the period, while the corporate market exhibited
a firmer tone.

NEW MEMBER BANKS

Loans, investments, and demand deposits moved
higher at the District's weekly reporting member banks
in the 5 weeks ended June 20, but time and savings
deposits declined. Cash accounts and total assets
advanced moderately.

The First National Bank of Irving, Irving, Texas, a
newly organized institution located in the territo ry
served by the Head Office of the Federal Reserve Bank
of Da llas, opened for business June 1, 1962, as a member of the Federal Reserve System. The new member
bank has capital of $200,000, surplus of $200, 000, and
undivided profits of $100 ,000 . The officers are: Curtis
G. Innerarity, President, and Hugh F. Whiteside, Vice
President and Cashier.

Gross loans (excluding interbank loans) rose $56.6
million at the weekly reporting member banks in the
District, with the principal increases in "all other
loans," loans to nonbank financial institutions, and
real-estate loans. Commercial and industrial loans advanced moderately, reflecting gains in services and
durable and nondurable goods manufacturing; the
other major categories of such loans showed declines.

The Northeast Nationa l Bank of Fort W o rth, Fort
Worth, Texas, a newly organized institution located
in the territory served by the Head Office of the Federa l
Reserve Bank of Dallas, opened for business June 14,
1962, as a member of the Federal Reserve System.
The new member bank has capital of $250,000 , surplus
of $250,000, and undivided profits of $125,0 00. The
officers are: Charles C. Brinkley, Chairman of the
Board and Pres ident, and Jim D. McBee, Vice President
and Cashier.

Total investments at the District weekly reporting
member banks advanced $13.2 million in the 5 weeks
ended June 20, primarily as a result of a $27.4 million
increase in non-Government security holdings. The
decline in Government security holdings centered in
certificates and in notes and bonds maturing within 5
years. In the comparable period last year, total investments rose $46.9 million, with larger holdings of
Government securities offsetting smaller holdings of
non-Government securities.

The Clear Creek Nationa l Bank, Seabrook, Texas, a
newly o rganized institutio n located in the territory
served by the Houston Bra nch of the Federal Reserve
Bank of Dallas , opened for business June 16, 1962,
as a member of the Federal Reserve System. The new
member bank has capita l of $2 00 ,00 0, surplus of
$1 00,000, and und ivided profits of $50 ,000 . The officers are: W. H. Baugh, President; N. A. Smith, Vice
President; and Max J. Frels, Cashier.

Demand deposits moved upward $148.0 million at
the District's weekly reporting banks, mainly because of
RESERVE POSITIO NS OF MEMBER BANKS

NEW PAR BANK
The First State Bank, Euless, Texas, an insured nonmember bank located in the territory served by the
Head O ffice of the Federa l Reserve Ba nk of Dallas, was
added to the Par List on its o pening date, J une 20 , 1962.
The officers are: Blease Tibbets, President, and B. F.
Simms, Executive Vice Pres ident and Cashier.

Eleventh Federa l Reserve District
(Ave rages of daily flgures . In thousands of dollars)
.............

Item
RESERVE CITY BANKS
Total reserves held . • • . . ....•..

With Fedoral Reserve Bank ..•.
R Cu!rency and coin . . .........

E=:,~~er~s~~~~sv.e~ : : : : : : : : : : : : :
Borrowing s• .•• • .. • •••..•••• . •
Free reserves • .• .. ..•. , .. . ..•.

CO UNTRY BANKS
Total reserves held . •. . .. ••. •..

With Federa l Reserve Bank ....
R Cu!rency and coin . .. . .. .. ...

E:~~~er~s~~~~sv.e~: : : : : : : : : : : : :

Borrowing s• •• ••• • • ••. •• •••• ••

Free reserves • •• . ...••..••....

All MEMBER BANKS
Total reserves held • •• •• • ••..••
With Fe deral Reserve Bank .. ..
Re Cu!rency and coin . ... . .... ..

Exieu~;er~s~~~~;.e~: ::::::::::::

-

~orroWlngs ••• •• •••• ••• • ••••••

ree rese rves • .. ...•••.•••.•..

5 weeks ended
June 6, 1962

4 weeks ended
May 2,1962

5 weeks ended
June 7,196 1

592,786
552,802
39,984
582,9 16
9,870
29
9,841

588,493
548,585
39,908
583,826
4,667
1,803
2,864

559,129
520,587
38,542
551,149
7,980
1,172
6,808

539,467
435,41 1
104,056
476,856
62,6 11
3,457
59,154

549,048
444,05 1
104,997
486,053
62,995
1,175
61,820

5 13,811
4 16,556
97,255
444,882
68,929
798
68,131

1,132,253
988,213
144,040
1,059,772
72,481
3,486
68,995

1,137,541
992,636
144,905
1,069,879
67,662
2,978
64,684

1,072,940
937,143
135,797
996,031
76,909
1,970
74,939

advances in deposits of individuals, partnerships, and
corporations and deposits of domestic commercial
banks. Time and savings deposits receded $12.8 million,
as a reduction in deposits of states and political subdivisions more than counterbalanced a rise in deposits
of individuals, partnerships, and corporations. In the
corresponding period in the preceding year, time and
savings deposits climbed $5.0 million.
Total reserves moved slightly lower at District
member banks during the 5 weeks ended June 6, reflecting a decrease at country banks. Excess reserves
advanced significantly at reserve city banks, and, thus,
the need for borrowing was reduced. At country banks,
excess reserves decreased slightly, while borrowings
advanced moderately. As a result of the above changes,
BUSINESS REVIEW
7:1962

I

9 1

free reserves expanded significantly at reserve city banks
but declined moderately at country banks. Total free
reserves moved to a higher level during the period but
were still somewhat below a year earlier.
Mixed trends characterized petroleum industry activity during
May and early June. Crude oil
demand in the Nation expanded
slightly in May, and new supplies
of crude oil declined as an increase in crude oil imports
failed to offset a reduction in domestic output. Processing of crude oil continued at a rapid pace during the
first 2 weeks of June, in which crude oil runs to national
refinery stills averaged almost 8.6 million barrels daily.
Crude oil production was little changed in early June,
but imports decreased from the month-earlier level.
During May and the first 15 days of June, crude oil
stocks declined 3 million barrels to about 250 million
barrels and were 3 percent below a year ago.
Similarly, trends in the District were mixed during
the period. District crude oil output decreased slightly
in May to about 2.9 million barrels daily, while production in early June was little changed. A slight
decline in daily average output is anticipated during
the longer month of July, since Texas has retained
its June allowable schedule. Refinery activity in the
District strengthened during May and the first
half of June, and indicators of drilling operations
expanded. The total number of wells completed in the
District during the 5 weeks ended June 9 was almost
20 percent more than in the prior 5-week period, and
total footage drilled rose significantly. However, the
number of District rotary rigs active, an indicator of
future well completions, declined moderately in May.

Refined product supplies and requirements both expanded in May, resulting in an unchanged inventory
level. The seasonally adju,sted index of demand for
the four major refined products increased 1 point during
the month to 108 percent of the 1957-59 average as
consumption of gasoline, kerosene, and residual fuel
oil advanced sufficiently to offset a decline in the use
of distillate fuel oil. Refined! product demand decreased
3 percent in early June, while, normally, a moderate
rise is expected; and stocks of the major products on
June 15 were 5 percent above the month-earlier level.
Gasoline demand increased less than anticipated during
the period; prices at the wholesale level were generally
firm throughout the Nation in mid-June. Price reductions were noted at the retail level in several midwestern
markets.
The Texas industrial production
index advanced 2 points during
May to a record 112 percent of
the 1957-59 base; a significant
gain in mining output and a slight
rise in nondurable goods manufacturing more than
offset a moderate decline in durable goods manufacturing. Compared with a year ago, the over-all index
showed a 5-point advance in Mayas a result of gains in '
18 of the 21 components of the index.
Nonagricultural employment in the five southwestern
states increased to an all-time high of 4,534,900 workers during May, A month-to-month decline in the
number of transportation and public utilities workers,
especially those engaged in water transit, was more than
offset by a significant rise in construction employment
and slight advances in all the other sectors. Compared
with May 1961, employment decreases in mining and
transportation and public utilities were. more than

NATIONAL PETROLEUM ACTIVITY INDICATORS
(Seasonally adiusted indexes, 1957·59

=

INDUSTRIAL PRODUCTION

100)

(Seasonally ad ius ted Indexes)
May
1962p

Indicator
CRUDE Oil RUNS TO REFINERY STillS
(doily overage).. ••••••• . . • • . . • • •• . •
DEMAND (doily overage)
Gasoline.... • • • . • • . • • . . • • . . • • • • • • • •
Kerosene. • • • • • • . • • • • • • • • • • . • • • • • • •
Distillate fuel
Residual fuel
Four reflned products. • • • • • • • • • • • . •
STOCKS (end of month)
Gasoline.... • • • . • • • • • • . • • . • • • . . • • • •

011.....................
011....... ... . .. . ... . ...

Kerosene. . . . . . . . . . • . . • • • • • . • . . . . . .

Distillate fuel all... • • • • • • . • • • • • • • • • • •
Residual fuel all.... . •• . •••• . •• •••• • •
Four refl ned products. • • • . . . • . . . . . .
p -

Preliminary.

SOURCES: American Petroleum Institute.
United States Bureau of Mines,

Federal Reserve Bonk of Dallas.

IBUSINESS
110

REVIEW
7:1962

April
1962p

May
1961
Area and type of index

May
1962p

April
1962

March
1962

May
1961

112

110
122
116
126
95

108

107

121
117
124
91r

117
117
114
12 2
101
139

116
116
112
122
99
138r

107

106

104

TEXAS (1957·59 = 100)
Total Industrial production........

107

106
160

107
180

Manufacturing. . . . . . . . . . . . . . .

122

93

112
91

115
127
99

108

107

110
99
109

Du ro ble. • . • • • . . • • • • • • • • • •
Nondurable. • • • • • • • • • • • • • •
Mining.. . .•••• ••• •.• •••••. •
UNITED STATES (1957 = 100)
Total industrial production..... •••
Manufacturing. • • • • • • . • • • • • • •
Durable. • • • • • . • • • • • . • • . • •
.~ondurable. • • • • . • • • • • . . • •
Mining.....................
Utilities.................. ...

177
109

101
114
110

102

82

80

87

102

102

102

105

114

121

109

100

115
109

119
97
\

118
118
11 4
123
101

143

p Preliminary.
r - Revised.
SOURCES: Board of Governors of the Federal Reserve System.
Federal Reserve 8ank of Dallas.

108
108
103

116
97
130

counterbalanced by ~ains in all other sectors, with
particularly noteworthy advances occurring in government, finance, and service employment.
NONAGRICULTURAL EMPLOYMENT
Five Southwestern Stotes 1
Pe rcent chang e

Ma y 1962 from

Numb er of pe rsons

Type of employm ent

May
1962e

April
1962

Ma y
1961r

April
1962

Ma y
1961

4,534,900
785,300
3,749;500
240,700
297, 100

4,520,400
783,900
3,736,500
240,400
291,200

4,460,900
771,600
3,689,300
242,000
294,000

0.3
.2
.3
.1
2.0

1.7
1.8
1.6
- .5

380,100
1,090,700
227,600
617,300
896,000

382,800
1,086,300
226,700
613,500
895,600

389,500
1,078,400
220,500
599,700
865,200

- .7

-2 .4

Total nonagricultural

wag e and salary workers • •
Manufacturing •. . •.... ...
Nonmanufocturing • • • • • ..•
Mining ... . . ••.••.. . • .
Construction •• • ••..••• ~
Transportation and
public utilitie s.•.. . . . .

Trade • •• • • •••••••...•
Finance • • • .• •••• •• ••• •

Se rvice . ...... . . . ... . .
Gove rnment • • • •.•. •• • •

1.1

.4

1.1

.4
.6
.0

3.2
2.9
3.6

ment insurance decreased 9 percent to 52,473. In line
with usual patterns, a number of students have entered
the labor force, and it is likely that the unemployment
rate in Texas will increase in June.
The value of construction contracts in the five southwestern states declined to $376 million during April
but was 11 percent above a year ago. The month-tomonth gain in residential building was offset by a
reduction in public works and utilities and a decrease in
nonresidential building from the very high March level.
Construction contracts through April totaled a record
$1,419 million, or 6 percent higher than in the same
period in 1961; a significant advance in residential
building and a gain in nonresidential building outweighed a decline in public works and utilities.
VALUE OF CONSTRUCTION CONTRACTS

l Arizona, Louisiana, New Mex ico, Oklahoma, and Texa s.

a -

Estimated.

r -

Rev ise d .

(In millions of dollars)

SOURCES , State e mployment ag encies.
Federa l Reserve 8ank of Dallas.

There were 152,600 persons unemployed in Texas
during May, representing 4.2 percent of the civilian
labor force and the lowest level since September 1959.
The May unemployment rate compares with 4.3 percent
in April and 5.2 percent in May 1961. Insured unemployment continued to decline in the State; from midMay, when the total unemployment survey was taken,
to mid-June, the number of persons filing for unemploy-

Area and type
FIVE SOUTHWESTERN
STATES' ..• •• •• •..• • •• ••
Resid ential building • . .• • ••
Nonr esid ential building .. . .
Public works and utiliti es • .•

UNITED STATES ... . . .......
Resi d entia l building •......

Nonresidential building .• ••
Public works and utiliti es •..

January-April

April
1962p

March
1962

April
1961

1962p

1961

376
190
90
97
3,860
1,816
1,102
943

444
169
160
115
3,986
1,552
1,325
1,108

339
137
110
92
3,298
1,454
1,050
794

1,419
629
429
361
13,188
5,712
4, 153
3,323

1,336
530
407
399
11,154
4,660
3,683
2,812

Ari zona , Loui si ana, N ew M ex ico, O klahoma, and Texa s.
p Pre l iminary.

1

NOTE . - Details may not odd to totals because of rounding.
SOURCE , F. W. Dodg e Corporation.

ELEVENTH FEDERAL RESERVE DISTRICT
~ Dalla l Head OffiCI Ter ritory

IIIIID Houston Branch Territory
I::::!:::::I Son Antonio Branch Territory
~ EI Pa l o Branch Territory

BUSINESS REVIEW1
7:1962
11

I

CONDITION STATISTICS Of ALL MEMBER BANKS

BANK DEBITS, !:ND-Of-MONTH DEPOSITS
AND ANNUAL RATE Of TURNOVER Of DEPOSITS

Eleventh federa l Reserve District

(Dollar amounts in thousands)
Debits to d emand
deposit accounts l

(In millions of dollars)
May 30,
1962

April 25,
1962

May 31,
1961

Balances with banks in foreig n countries e ....
Cash items in process of collection • ••.•••••
Other a ssets e • • •• • ••••••••••••••••••.••

5,649
2,798
1,048
957
161
1,076
3
486
256

5,633
2,877
1,060
938
168
1,094
3
648
303

5,111
2,650
902
869
147
1,038
3
461
272

TOTAL ASSETse .. . . .... .............

12,434

12,724

11,453

1,175
6,684
3,251

1,232
6,933
3,243

1,127
6,444
2,733

Borrowlngse ••• •••• • • • •.. • ••••• • • ••• •••
Othe r lIabilities e ••..• • ••••••••. : • •• • •••
Total capital accountso • •• ••• • •• •••••••• •

11,110
98
138
1,088

11,408
108
131
1,077

10,304
16
127
1,006

TOTAL lIA81l1TIES AND CAPITAL
ACCOUNTSe • • • • •••• •••.• •••••• . • •

12,434

12,724

Demand depo sitsl

Item

Percent

change from

Annual rate of turnover

ASSETS

April
1962

May
1961

May 31,
1962

May
1962

April
1962

May
1961

Loans and discounts •••• ••••••••••• •••• • •
United Stotcs Govornm ent obligations • • ••••
Other sec uriti es •• ••.• ••. .•.••••.••. ••••
Rese rves with Fe d e ral Reserve Bank ••••••••
Cash in vault e •• •• •• •••• •••• •.. •••• ••••

401,178

13

54

$ 161,702

29.8

27.0

22.6

8alances with banks in the United States • • ••

95,678
340,376

7
3

9
-6

51,424
171,649

21.7
23.0

20.5
21.8

20.8
23.6

59,382

0

26

39,661

17.9

18.1

16.0

118,552
238,862
322,585
183,872
211,522
16,872
3,558,946
366,573
849,648
101,882
3,318,713
35,367
203,955
68,884
59,158
713,791
25,538
100,478
11 7,936
12 1,320

8
-1
28
6
12
4
4
5
2
-1
14
4
2
19
9
5
7
5
4
2

17
6
26
10
9
12
11
7
6
13
18
17
15
4
0
7
14
7
9
3

74,097
114,22 9
140,829
98,674
113,495
19,364
1,282,281
171 ,3 14
379,379
60,147
1,378,629
24,813
120,365
43,739
46,753
390,515
16,985
61,203
70,037
95,204

19.3
24.5
27.1
21.7
21.8
10.4
33.1
24.2
26.3
19.7
28.3
16.7
19.9
18.6
14.9
21.5
18.1
19.2
20.3
15.1

18.0
24.2
19.8
20.0
19.8
9.7
32 .0
22.3
25.4
19.1
24.7
16.3
18.8
15.2
13.4
20.2
16.7
18.0
19.4
15.4

18.0
24.0
19.8
20.5
21.8
9.6
32.2
23.2
25.7
17.3
25.9
17.3
19.1
18.8
15.1
21.2
15.8
18.5
18.1
15.0

Total-24 cities •• • . . . • . $ 11 ,63 1,068

7

13

$5,126,488

26.8

24.7

25.1

May
1962

Area

ARIZONA
Tucson •• • • •....•...• $
LOUISIANA
Monroe ••••••••• • •• •

Shreve port •..•••...•
NEW MEXICO
Roswell .... . . . ......
TEXAS
Abilene ••••••..• . .• .
Amarillo ••••••••••••

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

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

Dallas ••• •• •. ......•
EI Pa so ••. • •..••...•
Fort Worth ••.. .• •. ..
Galveston ••• •••...• .
Houston • •• •••••••••

lore do •••..........
Lubback • ••••.....••
Port Arthur ..........
San Angelo •.• ••••••
Son Antonio •••......
Texarkana' •..•...•.
Tyler ....... ....... .
Waco •••• . •... .....
Wichlto Falls •••••..•

1 Deposits of individuals, partn erships, and corporations and of states and political
subdivi sions.
~ Th ese Agures include only two banks in Texarkana, Texa s. Total debits for all banks
in Te xarkana , Texa s-Arkan sas, including ono bank located in th e Eighth District,
amounted to $56,709,000 for the month of May 1962 .

CONDITION Of THE fEDERAL RESERVE BANK Of DALLAS

lIA81l1TIES AND CAPITAL ACCOUNTS
Demand deposits of banks ••••• • ••••• • .••
Othe r d emand d e posits • •• • ••• ••••••••• • •

Time de posits • •..•• •.••••••••••••••••••
Total de posits . . .. .......... .........

e -

Estimated.

GROSS DEMAND AND TIME DEPOSITS Of MEMBER BANKS
Eleventh federal Reserve District
(Ave rages of daily figures. In millions of dolla rs )
GROSS DEMAND DEPOSITS
Date

Total

Re se rve
city banks

1960: May •••.••
1961 : May ••.•••
1962: January •• •

7,364
7,643
8,584
8,234
8,099
8,148
7,973

3,623
3,743
4,179
3,965
4,034
3,963
3,923

Fe bruary •••

March •••.•
April ......
May . ... . .

(In thousands of dolla rs)

1962

May 16,
1962

Jun e 21,

Item
Total gold certiflcate rese rv es •••• • • '" ••..••
Discounts for member banks ••••..••..••.•••
Other discounts and advances •• • • ••..••• •••
U. S. Governm e nt securities ••• . •• • .• • •.•••. .
Total earning a sse ts • • ••. ••• .• ••••• . ••.•. "
Member bank reserve deposits • •• •.••••• ••.•
Federal Reserve not es in actual circulation •••• •

674,375
2,180
2,979
1,187,956
1,193,115
989,888
846,126

615,327
3,330
3,651
1,190,259
1,197,240
939,393
827,909

760,181
3,424
116
1,090,377
1,093,917
987,392
830,094

Jun e 20,

TIME DEPOSITS

Country
banks

Re se rve

Country

Total

city banks

banks

3,741
3,900
4,405
4,269
4,065
4,185
4,050

2,178
2,736
2,990
3,107
3,125
3,234
3,266

1,094
1,382
1,508
1,577
1,596
1,625
1,654

1,084
1,354
1,482
1,530
1,529
1,609
1,612

1961

BUILDING PERMITS
VALUATION (Dollar amounts In thousands)
Percent change

NUM8ER
Are a

DAILY AVERAGE PRODUCTION Of CRUDE OIL

Texas • •.• •• . •• .• • ••••••

Gulf Coa st • .• • .• ••••••
W est Texas •• • ••• • ••• •

East Texas (prop er) •••••
Panhandle .. . ... ......
Rest of State ..........
Southe a stern Ne w Mexico ••
Northern Louisiana • • •• •• . •

OUTSIDE ELEVENTH DISTRICT.
UNITED STATES ........ .. ..

May
1962p

April
1962p

Moy
1961

Ap ril
1962

May
1961

2,931.9
2,53 5.1
468.8
1,136.5
125.2
104.2
700.4
270.8
126.0
4,329.6
7,261.5

2,973.9
2,564 .7
469.8
1,1 48.9
128.7
105.1
712.2
280.4
128.8
4,401.5
7,375.4

2,9 16.8
2,517.5
444.6
1,131.7
132.9
108.9
699.4
270.0
129.3
4,230.0
7,146.8

-1.4
-1.2
- .2
-1.1
-2.7
- .9
-1.7
-3.4
-2.2
-1.6
- 1.5

0.5
.7
5.4
.4
-5.8
-4.3
.1
.3
-2.6
2.4
1.6

p -

Pre liminary.
SOURCES : American Pe trol e um Institute.
United States Burea u of Min e s.

Fede ral Reserve 8ank of Dallas.

BUSINESS REVIEW

12

7:1962

1962

5 mon ths,

May
1962

5 mos.

$ 15,317

1962

April
1962

May
196 1

1962 from
1961

860

4,078

$ 2,590

365

1,565

3,777

9,201

116

48

-50

702
1,480
1,758
1,506
1,567
12,097
2,503
3,322
1,18 1
15,065
1,366
615
447
785
6,504
1,166
728

2,155
2,715
7,317
2,090
1,706
18,119
4,503
3,190
1,237
34,623
4,000
1,74 1
625
393
5.700
1,486
1,723

10,487
16,312
31,013
8,039
8,Q57
83,828
20,719
22,838
11,039
150,567
18,126
7,3 10
3,858
2,179
26.718
7,939
6,147

44
-20
58
43
104
3
12
-63
199
30
12
158
-23
34
12
-17
96

102
-3
37
78
55
-14
-27
-57
460
0
11
30
-24
-50
9
-34
-31

73
17
24
35
-1
-10
-34

Wichita Falls ••

128
322
384
351
327
3,717
482
612
265
8,831
222
138
96
170
1,551
235
219

Total- 19 cities ••

19,275

58,435

$99,690

$459,694

13

-3

Tucson ••••••••
Percent change from

elEVENTH DISTRICT. ... .. ..

5 mos.

ARIZONA

(In thousands of barre ls)

Are a

May
1962

Ma y 1962 from

LOUISIANA
Shreveport •••.
TEXAS
Abil ene .. .....
Amarillo •• . • • •
Austin ..•••. ••
Beaumont •••.•
Corpus Christi .•

Dallas ........
EI Pa so •••••••
Fort Worth ••••
Galveston ••• • •
Houston ••• • ••

Lubbock • •••..
Midland ••. . ••
Odessa .... .. .
Port Arthur • •••
San Antonio •.•
Waco ••.. • o • •

-38 '-11

-23

-'11

308
46
-13
13
-24
-36
24
- 13
-42
7