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7
FEDERAL RESERVE BANK OF DALLAS

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

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I

"..---- - --------- ECONOMIC REVIEW
conomic c nditi ru in Lb
outhwe, t during 1957 reflected
th varied performances of the major indu tries f th area, a'
well a the shiftin o economi.c environment in the ation. Therc
were marked contrast' in output among industrie and, aL '0. ubstantial shift witllln individual industries. particularly b tween
the fir t and econd hal e
f the year. In general, ec n mic
cJeveJ pment in the leventb ederal Re erve Di trict reve . ed
the pattern e tabl' hed in 1956; 'trength w' ' shown primarily
in UJe fir t half of L957, with adjustments and moderate weakne' e de el ping in the econd half.
The greatest rrength in the
uthwestern economy during
1957 was vident in employment, per onal in orne, and conumer pending. Showing I
trengtb but still providing ubantial upport wer construction. gov rnment a tivitie' and
ariou manufacturing indu tries. For the year as a whole, the
mo t notable
akne 'se' occurr d in petrol urn and ass ciuted
industrie , industrial con truclioll, and capital inve ·tmen!.
In mot of 1957, nonagriculturaL mpl melll pro ided a
major ~timulati e force in the oUlhwesL reaching a recorcJ
4. 75,900 in De ember. However. th· year-to-year margin of
gain narrowed fr m 4 percent in January to I per 'em in December as empl yment in mining amJ a number of manufacturing
indu tri s turned downward. Within the aggregate of nonagricultural employment trength
as specially n ticeable in
governm nt, ervice, finance and constru tion employm nt.

\

,

'-

With full employm nt ontinuing f r three quart rs of the
y ar and wage rat~ advancing, per onal income ro<e to a level
timated at percent abo
195. Wag and alaries wer th
prime mover in this advance. An ther reason for the ain in
per ooal income was the ris in tran. fer payment. 3. an earlier
change in tb law hrought farmers and others under S cial
ecurity coverage.

A personaJ inCODl~ climbed upward, c nsumer purcba. e~
also moved ahead. H wever. this latter increase was relatively
small averaging le's than 4 percent at retail t res, and could be
accounted for primarily by the ri ing prices f consumer g ds.
M t of the trength in c ru umer purcha log came in the nondurabl and ervices eet . There wa weakn , in at of
c nsumer durable g ods, particularly major howehoLd it m',
although aut mobile sales were tr nger in th.c
uthwest than
in the ation.
Another major element f economi trength in th regi n
was on truction acli ilie . Total construction was nearl 9 percent ab ve 1956, as mea ured b the value of con truction
contract· a aIded but a large part f the advance stemmed
from rising co t flab r and materials. Indu trial construction,
though starting th year at a fairl high I vel was reduced harply
b midyear and continued d wnward for tbe remainder of L957.
On th ther hand, r identi' I
n tru ·tion m( ved upward fr m
early pring and ended the year n a tronger t ne, w.ith awards
12 percent ab
th pre i us ear. Th main str ngth in onlructi n awards 'curreo in publi work:-.. :-'I;ho ,I, and highway
onstru lion.
Agriculture 'bowed evidence. of con iderable :trength during
tbe fir t 10 month of 1957' however, when crops were harvested,
total produ ti n wa m derat ly bel w a year earlier, and a h
farm income feU hort of th total in 1956. de: pire higher Government payment.. High yields, reduced acreage, and greatly
impr ved moi ture conditi n were the mo. t important influence.
upon agri ultural production in 1957. Heavy spring rains.
oupl d with more intensive pr ducti n on fewer acre , increased
il
yield. p r acre to near-Tee rd high.. Participation in the
Bank programs - e pecially by colt n, wheat. and rice growers
I w red plant d acreage but sub. tantially incr a. ed Govem-

,--------------------------

----------_..-~~--

ment payments to south we tern farmer. Total performance of
rops did not fulfill earlier expe tat ion , a exee ive fall rains
and an early freeze ever ly reduced c tton out-put and quality
and damaged grain orghums.

CROP PRODUCTION
FIVE SOUTHWESTERN STATES

Live t ek a Ii ities were
I tered during th
ear
the
abundance f f ra e and grain•. In me eeti n of the Di trict,
ntinued f r the fir t time in aIm . t
upplemental feeding wa di
7 year. With the larger supplies of f rage. caul marketings
were curtailed markedly in I 57 and ome re"l eking ceurred.
At the cl e f the year. range and pa ture c nditi n. were the
be t in many year, encouraging winter feeding aDd further
r stocking.
There were a number f di appointing developments in the
Southwest during 1957, orne cumulating into actual decline
which became more important a tbe year progressed. Indu trial
activity howed minor impro ement through th third quarter.
with gains in machinery, primary metals, chemicals. and fabri-

.
OAIS
, . . . . . . . . 1e>..)'V+(L",J

SORGHU~GRJ\IH
fetJ!lH£U,

.
,. . . . . . . . . . . . . . .

·20

+120

NONAGRICULTURAL EMPLOYMENT
t d meta-I' being only partially ff et by d cline in lransportati n quipll1 ot. mining. and petroleum. M nufa Luring employment reached a record 786. 00 in ugust. but the ear-toyear gain a'i reduced teadily and disappeared by the end of
me 1 s f output becau. e of . trik . but
the year. There wa
the maj r de line in the outbwe t w re tho a ciated with
either the petr leum industry or the r ulL of tretch-outs in
defense expenditure, mainly in the air raft industry. In 1957,
few ery trong gains occurred in any indu try, the growth rate
lowed. Hnd new facilitie weI' not added at th rate establi hed
in rreviou. years. onsequenlly. Lher were fewer offeets to the
montru of the year and total
widening d line or the final
tnd trial pr duction edged downward.

FIVE SOUTHWESTERN STATES

CONSTRUCTION
FINANCE
GOVERNMENT
TOTAL
MANUFACTUR ING
MINING

+2

rERr~Nl'GE

3

INCREASE, 19~7 FRO~ 19~6

+4

A ignificant r a f de line wa. mining utput. ubstantial
utbacks in copp r. lead. zinc. and crud oil produ tion were
nly a mall e tent y increa ed produ tion of
ountered t
natural gao and r tao b. D' triet rude il producti n r ached a

MAN- HOURS IN MANUFACTURING
'FIVE SOUTHWESTERN STATES
MILLIONS Of HOURS

:330

32.5I----+--+--+---'---t--+-----i~...._,-_+_

32.5

+---1-----l32.0

-...........- 1 .

31 5I--+-----f--+-_+_ --L.--+----I--+---I-----r-----131.5

31.0

--t--+----l---..--+--_+_--+--+-----11----I31.0

30.5,1,..,...-+--*M-~--!M;----+-~--!---!--±-~~...-;!o30.5
P',hrninlrr

SOURCE- Slat, trn"IO,lIllnlllOtM:!"

re ord high in March 1957 in response to the foreign demand
for crude ou' but production remained at an advanced level far
into the pring and tocks accumulated when both foreign and
dome tic demand declined. District production in the final quarter of 1957 fell 9 percent below the level f a year earlier. with
nearly all the decline occurring in Texa .
One of th major re ulr. of tb cutback in District crude oil
production wa a decrease in drilling. Although tb
uthwe t
reduced drilling only 5 p r enl, or omewhal I s than th national decline f 7 percent. tbere wa a harp effe 1 up n suppH r of drilling quipmenl' od upon indep odent pr du er~ of
crude oil.
apitaJ iove lmenl in the Dislricl ~Iowed c nsiderably as urilling decreased and a unu ed capacity aJ '0 became evidenl in
other indu tries. The chemical industry continued to e pand its
facilitie but transportation equipment fabricated metal, and
machinery indu tries reduced capital outlay.

A in other year the ou e and pattern of econ rnic development in the Southwe t were directly influenced by change taking place in the national economy. Economic condition for the
country as a whole were marked by high-level tability in the first
8 months followed by a decline. The gro national product for
the entire year ro e about 5 percent although at least 3 percent
of the increase temmed from the higher price level. Main feature of the national ec n my during the fir t months of 1957
were table physical output increased con truction and plant
investment ri ing prices and gain in employment, income and
onsumer pending. In the clo ing 4 months of the year, nearly
all major economic me urement reflected orne weakening led
by declines in industrial production. The major exception was
the mild upturn in re idential building.
The broad forces shaping these change. in economic environment included inventory adjustments· a teady decline in new
order production, and ale of durable go ds' continued moderation o[ inflationary pres ure ; and rather ub tantial fluctua-

DAILY AVERAGE CRUDE OIL PRODUCTION
ELEVENTH FEDERAL RESERVE DISTRICT
MILLIONS Of B••RELS

3_8

3.6

,.-+--:--+--+--'---1---1-----13.6

341---------11---+-

34

321---j--j--1---1---..-J1-

3.2

1957

30

-!---:;-M--+---+---+---s!c--o!c-~o---.r..D~8

SOURCES U,S llurtollol' Mln'li
"IIl,rltan p,tro'..m In"lllIt.

.",.

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-

- - - - -- - - - MANUFACTURERS'
- -- - - - - ..... ,
~

GROSS NATIONAL
PRODUCT

INVENTORIES

UNITED STATES

UNITED STATES

\

B'LL'FON""SO",-F~DO~LU.~":S::r::;;;::;;;;;;;;;;;;;;;;;~J
32.0
~-------'---~"­

Inventory change during 1957 reflected the interaction of a
number of factors. With harp gains in productive capacity in
many industries and a lackening in the rate of new order, rna t
industrial raw mater.ials - particularly teel copper, lead and
zinc - b came available on short notice. This availability, t gether with the rise in the co t of credit. encouraged producer
t cut back their inventorie and thus av arrying charge .
. econd major lnfluence \] inventory change wa the fluctuation
in consumer purcha e . During rno t of the year, durable g d
ales were relatively weak, occa ioning involuntary to k accumulation in some ector. pecia! situations in the p troleum
and automobil indu trie were responsible for maoy of the largest fluctuations in inventories. Some pressure toward inventory
accumulation stemmed from attempt to buy before cheduJed
price increases but price declines in certain material militated
again t building larger tack. Balancing aU the e fore
rna t
bu inessmen adopted a policy of tigbt inventory control.

1956-,......'
.--_
..
......

18.0

-10
Pflll ... _rr.

iWlIIC.E..5'U5t1.,.rl ..r ljiDCl tIl ll'llUCfC:~\IncIlIlllEc~""·lt"L

......-!" DURABLE GOODS

F M

~-"f.llml"'l,

l'htll'II~!IId
'MIu,utl.llr"'I~lln

sou"C!: lL..SrNNiltaudClfC:II-..rel

MANUFACTURERS'
SALES AND NEW ORDERS

tion' in bu iness and consumer c nfidence. Total busin s inventories fO e teadily through September but most of the increas
came from revisions in the value of inventorie already in place.
For the year as a whole inventories showed some decline in
physical volume especiaUy io the final quarter.

PRICES
UNITED STATES

UNITED STATES
BILlIOll5 Of DOLLAllS

3'2.0

-+------131.0

A econd major factor which markedly influenced lbe general
trend of the economy was the hange in the durabl good indu trie. n keeping with the la kening rate of growth of the general
economy and the slower gr wth in plant and equipment expenditure. new orders to durabJ go d manufacturer declined
. teadily. With ale of both can umers' 'wd producer' durables
d elining production wa curtailed especially in the primary
metals and machinery indu tries. By the nd of the third quarter,
the weight of the decline cau ed a d wnward In em nl in
1 tal indu trial production.

I DEX ,..7 -49-'00)

122
12n1----

A~---~

._SALES

1r---;-;;19"'5"""6---'----..
19..,~o;-------.J25.0
P-P"lhllillll'r·
E-E,UmatH.
StolonaU,adjulltd.

\
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"

---------- SOURGE'U.S D.po.'mefll CIf COfnIllI.et,

lI'fM . . . .

JASOND

SOURCE:
U.S _
O.porl.....
ltl of Lobar.
_
_
_
_ _ _ _ fIIII'

I
"

ow r al . improved produ tivity and th d i.re 10 reduce
o t5 led to a ceady attrition in manufacturing empl yment
lhroughou the year. While many of these worker were ab orbed
by other industrie in the first 8 months the generaJ adjustment
in the economy in the September-December period brought a

more than ec anal ri~ in un mpl ym 'ol ,Inu r uu ed lotal
empl yment elow year-earlier levcl~.

INDUSTRIAL PRODUCTION

Inflalionary pressure', after continuing trong in th fir t 9
month•.. ubsided in the fourth quarter, rom December 1956 t
ecember J957 whole 'ale priL:es increa cd nearly 2 percent and
can urn r price' fO' 3 percent. with prices f farm products
being r pan ibl for a igoi.fic<lnt part of th increas ,
Anoth r factor in th changing economi pktur \ a' Ule 'harp
. wing in bu. ine and can umer ntim ot. rom a peri d of
pes inti ill at the b ginning of the year busines men took n a
brighter outl k in the late pring and summer only t . witch
back to pe ill1i m in the fall. While these shifts could scarcely
be justified on the basis of the change in general economic c 0dition . they pr bably e erted some influence on plant operation , inventory policie ancl plan for capital e penditures.
inancial de el pmenls in 1957 were con i tent wilh the
adju lmenl in bu ines, aeti ity during the year. During the first
three quarters of L 57, a stroog u mand f r funu$ and a re.tricti e credil p Ii Y c nlribul d l in .rea 'es in yield.)Q nil d
tate~ Go eroment 'e urities 'lOU advan 'e' in (ther inl re~t rat s.
Th
r<ue in rease' were capped b a rise in the c L1Jmer iul
bank prim lending ral in Augu~t and, ~horlly thereafter, U
V2-point increase in di counl rates of the Federal Re:er e bank.
to a uniform level of 3 V2 percent.
In Oct ber and November, evidence of a gen cal downtr nd
in bu ine activity began to m unt, and on ovemb r J5, four
Re erve bank reduc d their di count rate to 3 per ent. followed
by. imilar reductions at th remaining ight bank. \ ithin '\ few
e s. Th reducti~nu in mid- ovember wer foUo ed by a
harp rall in the hond market and ea. ier m netar conditions
in general. By th ear end, ields on Inger-term , eaun nls
were 4 t 7, ba is p iot below the peak leveL. of mld-O tober.
and rate
n new issues f Treasu ry bul. had declined 10 3.17
percent fr m Ihe 3.66-percenl high reached in 0 l ber.
While lotal credit demand' in 19 7 were les than in 1 56
and 1955 pre. sure. in credit market were p rhap. greater.

UNITED STATES

' '(I (I"'''' ''"'''0".
170
i.

NONDURABLE
MANUFACTURES

1201vo----iCI9""SS.-----I-..---'1"'9S...7,...---------.""l12D
'fttll",l.afJ

SnnQl1t, .tljntl.

SHORT- TERM INTEREST RATES
157

HI') -----'--

I REASURY Bill <; NEW,«"(S

.

'1..
"i'

"

tv

,"~'bLI/.~
,'"
"
, \r~-:'
.' '\'1 • / \ '
"I

'70 ,,\,'\

I

'........

_

•

lOI'JI---i--"'~...iIp"'~~~~ ~--1f-I"'..IIo-l300

'I

DISCOUNT RIITE

Commercial bank loans rose only $3.6 billion. compared with
increase.. of $7.6 billion in 1956 and $11.6 billion in 1955. a~
banks exercised selectivity in lending operations in view of their
reduced liquidily position and the limited availability of reserves.
The diminished growth in totalloan5 resulted primarily frolll the
moderate rale of increase of business inventories in lhe first three
quarters and lhe sharp reduction in the fourth quarter and from
a slackening in corporate demands for funds as businesses used
part of the proceeds of long-ternl borrowing to reduce bank debt.
Business corporations. confronted with increased needs for
funds to finance record new plant and equipment expenditures.
borrowed heavily in the long-ternl capital markets throughout
the year. The record volume of new corporate security issues.
coupled with near-record borrowing on the part of state and
local governments. provided an undertone of strong demand in
capital market;) that precluded. until late in the year. anything
but temporary advanc~ in bond pric~. An additional factor
contributing to pressures in credit markets was the nece.!>sity for
the Treasury to borrow heavily to meet ca~h drains. These drains
were substanti.. 1 a~ .. result of large net redemption.!> of ;)avings
bond.!> and an unexpectedly high rate of Federal expenditures.
Federal Reserve credit policies throughout most of 1957 were
directed toward restraining inftation.. ry credit expan~ion. Anum·
ber of developments jU.!otificd the continuation of re.!olraint until
late in lhe year, when it became c1~ar that inflationary pres.!our~s
were subsiding. First. the record level of long-term borrowing
indii:ated a continuing strong demand for funds. Business corporations probably would have turned to commercial banks for
temporary accommodation in order to await lower interest rates
and less restrictive borrowing Icrms. had the bank" poS!;;e.'_scd
sufficient fund .. to accommodate them. Thu". the pcrsi."tcnt
pressure on bank reserve positions tended to limit the use of
bank credit ;n cflpit:.l1 expansion.
Secondly. economic rcsourcc." in general continued to be uti.
lized intensively during the first three quarters of 1957. For
example. steel output averaged more than 90 percent of capacity
during the first 6 months of the year and. except for July. did

nO( drop below 80 percent until November. Bel\\:een January
and September. seasonally adju<;ted unemployment fluctuated
c1oc;e to 4 percent of the civilian labor force. rising above 4.5
percent only in the final quarter. Thc.<;c figures indicate a full
and satisfactory utilization of economic resources during the
first 9 months of 1957.
Finally. the sustained increasc in consumer prices from early
1956 contributed to inflationary p.!oychology on the part of busi·
nessmen and consumers. The expectation that inflation was
inevitable threatened to undermine savings habits and to encour·
age spending as a hedge against future price increases. The
detennination of Federal Reserve authorities to adjust credit
policies to the requirements of sustainable gro"1h probably
helped to dispel this inflationary point of view.
During the firsl 2 months of 1957. strong casing tendencies
domin:.lted the money and capital mar~ets. despite efforts of
System authoritie~ to Ill:.lintain :l fairly taut rein on bank reserves.
The net borrowed reserve position of member banks that had
prevailed throughout almost all of 1956 was replaced by nel
free reserves in January. Yields on Treasury bills and longerterm Governments and on corporate and Illunicipal issues
declined somewhat.
The ea.!oing tendencies resulted from several factors: (I) Systelll net sales or redemption.!> of 2 billion of Governments in the
2-month period were largely offset by the net change in other
reserve factors, including currency in circulation. gold stock,
required reserves, float, and Treasury deposits at the. Reserve
banks: (2) funds obtained from net redemptions of savings
bonds found their way into the mJrkets for corporate and municipal issues and. In a lesser extent. for m:lrketable Federal securities; and (3) a deterioration of business conlidence. together
with the unintentional easing of bank reserve pOSitions. caused
some market participnnts to conclude that credit policies were
being shifted toward ease.
Both the easing tendencies ill credit markets and the increased
caution in assessing (he business outlook were short-lived. Steps
taken by the System to rccapture earlier degrees of restraint

J

c ntribute<! t increa e in n t b rro d re erve in March and
April t leve approaching tho e that had prevailed a year
earlier. Frequent Trea ury financing operati os al 0 added t
market pre . ure .

LONG- TERM BOND YIELDS
1957

3.8

1--

3.6

-,

3.4

\

3.0

Busine c nfidence appeared t trengthen teadily and persi lenlly in the ec nd quarter a capital spending and b Trowing
continued at re rd I vels, tock market pri e advanced to new
1957 high and on umer price c ntinued to ri e. The up urge
in confid nee perhap reached it p ak: in midsummer. Rates in
money and capital marke firmed with I ng-term rate rising
harply in June. Under these condition - and e pecially in
vi w of the fact that the Treasury bill rate e cept for 2 weeks
of brief decline in May nad ruled steadily above the di count
rate throughout the year - rumors as to an imminent increase
in di count rat spread through the market in the late spring
and early ummer,
In August, ommerciaJ banks in the m ney center increa ed
th iT prime lending rate from 4 percent t 4 J/2 percent. hortly
thereafter, ederal Re erve authoritie confirmed this rate increa e, as wen as the generaJ rate tructure that had emerged
in the preceding months by raising di count rale Jh point to
a unif ml level f 3 1h percent at the 12 Re erve banks.

MEMBER BANK RESERVES
UNITED STATES

,

-

--I

I
I
I

I

The fir 1 onvincing ign that inflationary pre ur
were
diminishing ignificanUy was the failure of loan at the Nation'
weekly rep rting member bank to regi ter their u ual autumn
!!ain. During S ptemb r-Oetob r. loan of the e bank de lined
'321 million, contrasted with increa es of
72 million and
'1 .. 75 million in the omparable we
of 1956 and 1955.
r 'pectively. M re ver. appraisal f bu ine pro peets again
turned toward c ution. The market began to generat a m derate
amounl of ea e, partly b au 'e f the r duced pre sure on bank
for 1 an funds and partl beau.') market opinion shifted toward
Ib~ vi~
that interest rate' had reach d their V ak!..
1n the light of the:'e and ther development pointing lO a
'Iackenlng in economic activity, Federal Re erve authoritie permitted the easing generated by the market l be reflected in
somewhat less re tricti e bank re erve p ition. This ea iug,

,
/

---

;------~--

LOANS AND INVESTMENTS

1

MEMBEFl 9AN~-EI.EVENTIi FEOERAL RESERVE OISTIIler
81l.LldNe Of' DOL.L4RS

I
I

SILUONSOI' OOt:lAlls

'(2

ot2.

4.0

I

3,8

I

'3,6

3.6

I

3,4

3.4

I

4.0

3;8

LOA:~S

I
I
J
2.6

I
I

1957

1\)56

I

I

CHANGES IN BANKINGTOTALS
MEMBER BANKS"ElEVENTHFEOERAL RESERVE DISTRICT

I
I

I
I

pEJ/elON'l"lGE ellA" GE

+25
TIME
DEPOSITS

+20

+20

+15

+15

+10

+10

+5

+5

I
I

0

0

I
\

-5

I
I

I

I
I
I

I

2,,6

~8t>~W'S

--------~~~~-..,

Market reaction to litis straightforward signal that monetary
policy was being adjusted to the changing bu ine s siLuation was
dramatic. The bond market rallied sharply' Treasury bill rates
declined to levels lose to the new di count rate; and a Treasury
financing operation which included a J7-year b nd, wa l1eavily
oversubscribed. Throughout the remainder of the year markets
for Government securiti s and other debt in trwnents were
strong in tone, with sustained upward price movements int rrupted only temporarily.
Sy tem purchase of Governnl Dts foUowing the di count rate
reductions increased the availability of re erve and thereby
added an important tangibl fore to the easing pressures. During the la t 5 week of 1957 ytem holding of Government
ecuritie rose $662 miJlion. In response to these purcba e , net
borrowed re er es declined during December and by tlle end of
the year, were replac d by a small volume of net free reserves.
Furthermore bank u. ed part of the reserve funds injected by
the ystem to add substantially to tlleir hidings of Government
ecuritie .
By the year nd, it wa ~1 ar thaI open mar t and discount
policie had been adju ted L th chang in the bu in S5 . iruati n. This shift, coupled with the determination of y tem
authorities t combat ioft lionary pres ure arlier in th y ar,
empba ',ized the fact that monetary polie would contiou LO be
adjusted fte ibly to economic trends.

-5

... tat~~iHIl1l

although light. contributed La a decline in Trea. Ul' bill rat
and moderate decrea es in yield on longer-term Gov rnment
securities. Then, as additional economic and financial data confirmed the judgment that inflationary pre. sures were dimini bing.
four Reserve banks reduced their di. count rates by Ih point
to 3 percent, effe tive ov mber J5 followed by similar reduction al the remaining bank within a few weeks.

I
/

Banking devel pill nls in the lev~nth Federal Re 'erve Distri tin L957 reflected the m deraLe ver-all gr wth f the region
and lh divergen: trend in individual industrie. he increa e in
totaJ loans of 152.] million r 3.7 percent, wa almo t twice
the gain in 1956. ontcasted wiLh the Nati n loan demands in

the Eleventh District showed considcrable
strength in the lattcr half. of the year, especially in the commercial and indus(rial category. Of particular note were the JuneNovember gains at city banks, in contrast to
the national picture, where commerci,ll and
industrial loans declined contraseasonally.
Changes within the loan category, as evi·
denced by figures applicable to the District's
weekly reporting member banks. reflected im·
portant shifts in loan demand in 1957 as com·
pared with 1956. Three types of borrowerssales finance companies, construction firms.
and manufacturers of petroleum and related
products - accounted for most of the strength
in District loan demand during (he year, while
most other categories borrowed less (han in
1956. The active demand on the part of petroleum concerns in the latter part of the year
may have resulted from a need for funds to
carry exccssive inventories. The strength in
construction demand paralleled the 9-perccnl
gain in contract awards in the District states.
Consumer loans rose substantially, if somcwhat less than in the preceding year.
Investments of District member banks in·
creased $27.5 million. or less than I percent.
and capital accounts expanded $62.6 million.
or 8.5 percent. The decline in total deposits
resulted from partially offsetting changes in the
demand and time categories. Demand deposits
decreased $385.9 million. or 4.6 percent, but
time deposits rose $284.8 million. or 20.5 percent. The increase in time deposits. which was
approximately four times the growth in 1956,
rellected primarily the geneml increase in rates
on savings deposits effected by member banks
during the year. Moreover, it is probable that

a substantial portion of the decline in demand
accounts represented shifts to savings accounts
in order to obtain an interest payment.
Treasury debt operations in 1957 added to
market pressures, even though a modest budge(
surplus permitted a reduction of $1.7 billion
in the gross direct debt. As noted earlier. sub·
stantial net redemptions of savings bonds,
together with a faster than expected rate of
expenditure during the first three quarters of
the year, contributed to steady and persistent
pressure on the Treasury's cash position. Thus,
total cash borrowing in 1957 was $20.0 billion, compared with only $7.6 billion in 1956.
Although the necessary cash was raised in
a variety of ways. only $4.6 billion was bar·
rowed through securities maturing in more
than I year. Shortly after the reduction in
Federal Reserve discount rates. however. the
Treasury successfully raised $1.8 billion by
issuing a 5-year note and a 17·year bond.
Toward the end of the year. as the tot::tl debt
increased, the $275 billion statutory debt
limit forced the Treasury to resort to cash bar·
rowing through certain Government agencies
and affected the timing and amount of otller
cash borrowing.
Refunding operations 10 replace lhe $48.8
billion of maturing Treasury issues (other than
bills) in 1957 were also confined largely to
issues of short maturity. Attrition during refundings. which amounted to $3.2 billion. was
an additional factor pressing on the Treasury's
cash position. As a result of thc issuance of
large amounts of short-term securitics, the
average maturity of the tOial debt was short·
encd further in 1957.

/

,-

FEDERAL RESERVE BANK OF DALLAS

I

J.

ROBERT

I

~UTH

(Clmirll'll/II a"d F deral Resen'e Agent). Presidenl. Pioneer eranautical Services, Inc., Dallas, Texas
(Deput)' Chairmall), Rancher. nd Feeder, Dexter. ew Mexico
Industriallsl and Farmer. Henderson. Texas
hairman of Ihe Board. Anderson. la on and Com·pan~. Inc.. H USI n. Texas
President. The hy National Bnnl.. or Ta.lor. Ta lor. Texas
Chairman of rhe Roard. lone SI3r Ga
ompany. nHlIlt~ T.: a~
President. curlty IMe Bilnk Trosl ompan~·. Rail;. ~ X",
Pre"id.nt an I General Mana".. and Direclor. 'I e,as Electric en'ice ompan)'. Fort Worth. Texas
President, EI Pa 0 mional BanI... 1:.1 Paso, rcus

HAL RaGLE

R.

JOHN

L

FORD

1AR FLEMING. JR.

M. RIFFITH
D. A. H LC
J. Eoo M L
1I11
1. B. THO IA
A~I D.
OUNG
JOII

HOUSTON BRANCH
JOHN

C.

W. B.
A. -.
S. M R
TVRUS

D RECTORS

( hairmall), Vice Pr""ldenl and General Manager, Texalo Distrlbullon Di"blun, United Gas orporation,
Ho"ston. Texas
Presiden , The American Nmional B'mll of Beaumont, Beaumonl, Texas
Vice Ch"lrman of the Bcmrd and Chairman of Ihe Execull e C mmiltee, Bank of Ihe Southwest National
","ocinllon. Houslon. Hou ton, Texas
Presidenl. The Vlcloria NUlionll1 Bank. Victorino re~as
Vice Pr""ldenl !lnd Director. Lufkin F undry & Machine Company. Lufkin. Te.as
ice Chuirmau (If Ihe Board, ir.1 ily allonal Bunk of Houston, Houslon, Texas
Ilelld. Department of AJ!Ticullu,.... t Fcunumlcs lind. ,doll>!!. . 'M.
liege of exas, CoUege Station, Texas

FLANAGAN

R.

GREER

11\11\1

SAN ANTONIO BRANCH
(CJlllirmml). lee Presidem, en. C. .ugh:!.n & 'uns, an Anlunlo, Tuas
l'rofe..<.sor l,f Ecnnomic . The nive.. il of Te,a.. uMin. Te as
Pre'ident. Flrst al uoal Ban~ of San Anlonit). nn Anlonio. 1 e"as
Presidenl. The First !I1mnnl I:lank
lIarIinllen. Harlingen. 1 exas
eculive
mmillee. orpos ehri II lUte IIlional Bank, Corpus Christi, Texas
; e Presidenl. The Auslin alional Bank. Aust;n. Te~ s
Pr«idenl. uuJhwest Research Insl IUle. on Antonio, Tcx1l.'

0'

EL PASO BRANCH
(Cllllirnul/l), Pre.sidenl.

ew Mexico InSlhute (f Mining and Technology, Socorro, New Mexico

President. The Marfa alion,,1 Bank. Marfa. re""s
!'resldent. til First al;onal Ban~ of MJdland. Midland. lexas
Vice PTe idwl. The Frr t atlonal BanI.. of R, well, R"swell. ew Mexico
Editor and PublIsh r. TI.. r/;:Ollu 0o"!' ~roT, fucson. Arizona
Vice Presidenl. £J Paso nli nal Bank. I P, o. Te as
Treasurer. Slahmann Farms. loc .• LaJ; Cruces. New Me~ co

\

,
......

----

FEDERAL ADVISORY COUNCIL MEMBER

----

WALTER B. JACOBS

J

Presidenl, The First National Bank of Shreveport, Shreveport, Louisiana

I

/

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--------_ ...... --

FEDERAL RESERVE BANK OF DALLAS
WATROU

I

W. D.
E.

H.

GENTRY.

IRON. President
Fir t Vice President

G. R.

B. AUSTIN, Vice President

HOWARD CARRITHERS,

1. L.

EAGL •

E. H.

W. H. HOL OWA ,
T,

General Auditor

Assistant Vice President
BERG,

Assistant Cashiu

Vice Pre. idellt
AUTHEN.

T. A. fURor , Vice Prl'sident
T. W. PL

MURFF,

CARL H. MOORE,

Vice President

K,

W. E.

Vice President

Vicl' President

HERM

Cashier

(///(1

ice Pre itlel/t

W. KILMAN,

Assi ·tal/t

ashier

A sistant Cashier

W. M. PRITCHETr. AS.I·istallt Cashier

L. G. Po DROM. Vice Presiclenl

PllILII'

H. RICE, Vice Presidel/I lIl/ I
ecrular)' of the Board

E.

OLDWEL,

Dire tor 0/ Res/'(/T(;h

IORGAN

HARRY

• SHUFORD,

General

01/1/.

Moss E. HUL

Via Pre. idem al/ll

Y.

Ill.. Chief Examiner

lAM S A. PARKER, Director

el

E. WALKER. Vice Pre.l'idellt al/d
ecol/omic Ad~'iser

GORGE

CHARL

0/ Personnel

F. RUDY, Assi lanl COl/mel anel
Assistant Set:retary 0/ the Boarel

OFFICERS
HOUSTON BRANCH
J. L.

Vice President in Charge
B. 1. TRoy, Cashier

COOK,

W. C. HARTUNG, Assistant Cashier

THOMAS R. SULLIVAN,

Assistant Cashier

SAN ANTONIO BRANCH
W. E. EAGLE, Vice President i/1 Chargl'

A.
ALVIN E. RUSSELL,

E. MUNDT.

Assistant Cashier

Cashier
FREDERJCK

1.

SCHMID,

Assistant Cashier

•
\

,

EL PASO BRANCH
HOWARD CARRITHERS,
"

FREDRIC

W.

REED,

Cashier

Vice President in Charge
T. C.

ARNOLD,

Assistant Cashier

ASSETS
Gold certificates
. . . . . . . .
Redemption fund for Federal Reserve notes
Totol gold certificate reserves .
Federal Reserve notes of other Banks
Other cash . . . . .
Discounts and advances .
Industrial loons . . . .
U. S. Government securities
Bills . . .
Certificates
Notes
Bonds . .
Total U. S. Government securities.
Total loans and securities
Due from foreign banks
Uncollected cash items
Bank premises . . .
Other assets. . . •
TOTAL ASSETS
LIABIlITIES
Federal Reserve notes in actual circulation
Deposits
Member bonk - reserve accounts
U. S. Treasurer - general account
Foreign. . . . . . . .
Other . . . • . • . .
Total deposits . . . .
Deferred availability cosh items
Other liabilities. . . .
TOTAL LIABILITIES

•

CAPITAL ACCOUNTS
Capital paid in . .
Surplus (Section 7) .
Surplus (Section 13b)
Other capitol accounts
TOTAL CAPITAL ACCOUNTS
TOTAL LIABIlITIES AND CAPITAL ACCOUNTS

~
$

808,001 ,430.00
28,495,116.17
836,496,546.17
21,148,300.00
12,828,212.31
14,825,000.00

°

38,545,000.00
781,178,000.00

°

$

STATEMENT OF CONDITION

727,344,125.56
26,197,381.17
753,541,506.73
28,288,000.00
14,955,680.81
1,275,000.00

°

68,410,000.00
434,509,000.00
363,813,000.00
111,353,000.00
978,085,000.00
979,360,000.00
1,135.39
250,706,071.20
3,969,819.92
10,583,715.49

109,798,000.00
929,521,000.00
944,346,000.00
754.79
223,368,027.92
6,259,703.45
9,345,624.37
2,053,793,169.01

2,041,405,929.54

748,183,830.00

726,040,795.00

996,223,087.35
30,868,026.31
17,732,000.00
2,166,430.60
1,046,989,544.26
190,958,083.14
572,153.36
1,986,703,610.76

1,013,276,638.07
39,653,806.81
15,096,000.00
6,884,013.80
1,074,910,458.68
1n ,689,415.33
440,894.31
1,979,081,563.32

19,405,250.00
18,019,200.00
40,871,083.29
37,507,648.63
1,307,124.72
1,307,124.72
5,506,100.24
5,490,392.87
67,089,558.25
62,324,366.22
$ 2,053,793,169.01 $ 2,041,405,929.54

EAR

CURRENT EARNINGS
Discounts and advances
Industrial loons. . .
u. S. Government securitIes .
All other . . . . .
TOTAL CURRENT EARNINGS

$

791,239.03

$

•

830,142.10

o

o

28,792,666.83
13,842.04

22,699,658.36
13,264.22

29,597,747.90

23,543,064.68

6,844,766.62
388,700.00

6,297,728.69
269,900.00

144,221.00
22,143.00
7,399,830.62

97,148.00
21,252.00
6,686,028.69

1,107,327.00

1,073,098.54

6,292,503.62

5,612,930.15

23,305,244.28

17,930,134.53

6,940.95
135,349.16
142,290.11

11,536.95
37.33
11,574.28

15,707.37
403,386.00
419,093.37
276,803.26
23,028,441.02
18,545,291.76
1,119,714.60
3,363,434.66

17,891.63
641.26
18,532.89
6,958.61
17,923,175.92
13,223,260.27
1,039,339.09
3,660,576.56

CURRENT EXPENSES
Current operating expenses. . . . . . .
Assessment for expenses of Boord of Governors
Federal Reserve currency
Original cost, including shipping charges. .
Cost of redemption, including shipping charges.
Total . . . . . . . .
Less reimbursement for certain
fiscal agency and other expenses
NET EXPENSES

PROFIT AND LOSS
Current net earnings . . . . . . . . . .
Additions to current net earnings
Profit on sales of U. S. Government securities (net)
All other . . . . . . . . .
. . . . .
Total additions
Deductions from current net earnings
Reserves for contingencies
All other . . . .

NINGS AND EXPENSES

Total deductions . .
Net deductions . . . . .
Net earnings before payments to U. S. Treasury
Paid U. S. Treasury (interest on F. R. notes)
Dividends paid . . . . . .
Transferred to surplus (Section 7) . . .

•

OPERATIONS

•

Number of Piece.

Discounts for member banks
Secured by U. S. Government obligations .

Dollar Amaunt

789

695

$ 2,649,555,000

$ 3,812,277,000

56

67

32,417,000

60,946,000

Currency received and counted

155,499,000

147,601,000

894,499,000

867,579,000

Coin received and counted

247,973,000

220,979,000

23,690,000

20,977,000

835,704,000

835,941,000

29,661,000

29,856,000

Other

Currency paid out
Coin paid out

162,969,000

153,086,000

64,628,235,000

60,185,287,000

3,342,000

2,950,000

275,307,000

250,462,000

Collections handled

862,000

853,000

449,263,000

504,702,000

U. S. Government interest
coupons paid.

300,000

271,000

64,413,000

55,624,000

Coupons of governmental
agencies paid .

7,000

6,000

943,000

897,000

Postal money orders

17,954,000

18,459,000

334,287,000

330,975,000

U. S. Government checks
and warrants poid

24,895,000

24,120,000

5,230,563,000

4,541,853,000

151,000

137,000

70,716,211,000

64,845,789,000

7,294,000

6,668,000

9,379,185,000

6,777,469,000

Securities of governmental
agencies is.sued, exchanged,
and redeemed

2,000

1,000

74,720,000

17,696,000

Purchases and sales of securities
for investors

8,000

7,000

3,071,040,000

2,159,957,000

333,000

358,000

523,807,000

505,554,000

Checks handled
Checks returned unpaid

Transfers of funds for
member banks
U. S. Government securities
issued, exchanged, and
redeemed

Postmasters' deposits

REVIEW OF OPERATIONS
Since the District's economy experienced moderate growth in 1957 and
showed relatively mall net changes for the year it' not urprising that
tb Bank tatement of condition reflected only modest change. On Decemb r 31, 1957 t tal re ouree of the Bank amounted to 2053,793,000,
r presenting an increa!e of only 12.387,000 over a year earlier. Total gold
ertificate re erve of the Bank ro e 82 955,000, indicating a net inflow
of fund into tb Di trict. A maj r hang on the d wn ide was the net
reduction of $35,014,000 in total loan and securities. Thi' decrea e w
due primarily to maller boldings of G vernment 'ecurities in the System
Open Market Account resulting from the re trictive credit p licy followed
during rna t of the year, and this Bank I wer percentage participation in
that Account.
On tbe Jiabilitie • ide f the tatement tbe significant changes were an
in r ase of $22,143 000 in ederal Reserve note in cir illation. a decrea
f $27921,000 in total depo it , and a ri e of $4765000 in total capital
a ount, The paid-in capital tack of the Bank t the end of the year totaled
19,405250, repre enting a net gain of 1.386,050 during 1957. This gain
i a direct outgrowth of the increase in the capital and urplus of District
member bank' which ro e at Ie t $46.2 million during the year. M t of
the remaining increa e in capital account resulted from the tran fer of a
p rti n f net earning to the 'urplu acc unt.
Current earning of the Bank ros to an all-lime peak f '29 598, 00 in
1957; whil exp nse in r a ed omewbat, net arning were 23, 2 000, or
$5.105,000 mor than in J 956. Sin e av r ge b rrowing f member banks
and averaoe holding' of Go ernment s uritie - tb principal ources of
earning - w re maller than in 1956. lh harp increa e in amings r suited
from the higher average inl rest rates prevailing during lbe year. The Bank s
nel earning were distributed a follows: paid to th United SlaleS Treasury.
$1 545292' dividend paid to member bank. $1.119,715' and tran ferred
t
urp]u, $3 363 435,

DEPARTMENTAL ACTIVITIES
The CA H DEP .RTMENT is the medium thr ugh which
currency and c in are made available to commercial baok,
which in turn upply the oeeds of the geoeral public. Likewi e
wheo the publi has more currency and coin than needed t
transact day-t -day bu ines , tbe urplus is depo ited in emmercial bank' which then hip their urplu. to the Federal Reserve
Bank for credit to their reserve accounts. Thu. , there is a constant
flow of currency to and frornthe ederal Reserve Bank.
During 1957 lhi Bank made 74960 hipm nt of currency
and coin to commercial bank and received from th m 31 054
shipments. The outgoing shipments amounted to , 863,812 65
while the incoming shipments totaled $895,875 140. Both the
number and the dollar amount f hipment were lightly mailer
in L957 than in 1956. Mu h f the currency returned to the
Fed ral Reserve Bank i either mutilated or badly w rn and,

ther fill unfit r r Furth r irculati n.
nnt Federal Re. erve
note are shipped to th United Slates Treasury for destruction
while unfit Treasury currency i destroyed locally by the Re erve
bank. Ln J 957 the v lume of unfit currency received by thi' Bank
am unted t $ 27,31 500. r ab u 16 percenl m re than in
th prevl u year. Thi amount included
185,694,450 of
unfit notes of ther Fed raL R erv banks, c n tituting ab ut
57 percent of the total of unfit curf ncy received.
The Cash D partment also paid 306 455 coupons of the
United tate Government and its agencies and handled 8,343
tran actions for member and nonmember banks involving the
purcha e and ale of United tat Government securities. The
volume of tb~ op ration was 10 per ent and 25 p rcent.
r pectiv ly greater than in 1956.
he handling of di c unts for and advance to member bank
i the principal function of the LO
AND E URITlES
D PARTMENT. During 1957 the Bank accepted 845 notes
from 52 bank which involved discounts and advances of $2,682
nllUion. Although the numb r of note wa. up nearly 1 J percent
the amount of credit extended wa down about I percent.
The principal duties of the TRA IT DEPARTM NT are
the proving in of ca h letter and the 'orting, endor iog, Ii ting.
and forwarding for payment of checks drawn on banks and the
Government. These checks - received from and ent to banks
throughout the District and the United State - are collected
in the horte t pas ible time. In 1957 thi higb- peed operation
required handling an average f approximat Iy 682,000 ca h
and noncash oUe tion item p r day which bad a vaJu of
230.3 million, repre enting increases ov r 1956 of 5.3 p rcent
in number and 7.8 percent in amount.
Th 1629 9,0 0 'ilyand )unlry he ks hamlled during I 57
e ceeded the 1956 volume by 6.5 percent. while Go emmenl
che k' pr ce.. d - L taling 24.895.000 - w r up nly 3.2
p rcent. P stal money order' handl d, which had shown little
chang in 1956, dropped to 17,954.000 in 1957, refte ting a
decrease of 2.7 percent. Although return item. involved only
342000 checks, the 13. -percent increase ver 195 was the

in secufltles reflects the sale and redemption of United Stales
savings bonds and the is."uancc and redemption of certificates of
indebtedness and Treasury bills. 1l0(C.~. and bonds. Related activ.
ilies cover the receipt of withheld taxes, the servicing of Treasury
Tax and Loan Accounts with commercial banks. wire transfers
of securities. and the destruction of unfit Trem,ury wrrency.
The department also performs occa~ional opcnllions for governmenial agencies.

)/

During J 957 the Fiscal Agency Department handled 7,296.642
pieces of securities with a value of $9,453,905.000, representing
gains of 9.4 percent and 39.1 percent, respectively, over 1956.
Savings bond operations, which cover most of the pieces of securities handled. increased 6.3 percent in the number sold and rose
14.4 percent in the number redeemed.
Wire transfers of markelable securities continued to increase
in 1957 with 46,880 pieces of securities involved. exceeding the
previous year's volume by 10.1 percent. Likewise. the number

largest among Ihe scvcral operations. For the ye:'lf, a tOial of 210.·
356.000 items was processed. involving more than $71 billion.
Operations of the COMMODITY CREDIT DEI)ARTMENT
declined sharply from 1956 as a result of a further reduction in
cotlon production. delayed harve~ting of the 1957 crop. and the
fact that a large share of the 1955 and 1956 cotton crops placed
in the Government loan was processed in 1956. During 1957.
notes secured by 792.723 bales of cotton with a loan value of
$1 16.794,000 were received and processed. reprcsenling less
than one-third the volulllc handled in 195(l, COllnn released
lhrough repayment ~lf prodlll:ers' nolc<; llltalcd 2R4.91R hale...
while fin additional 2.551.847 bales of colton helel under Ihe
1955 and 195(l loan pr('lgrams were placed under Ihe pooling
arrangcmcnl. The dcp<lrtmcni <111'0 processed the records Cllvering
62J.792 bales l]wt were ree()ncenlrated in w;treh(lul<ie~.
The FISCAL AGENCY DEPARTMENT performs many
services for the United St<.ltes Government. including the issuance.
exchange. and redemption of securities. The volume of activity

•

o

"",

~

of withheld tax. receipts validated rose 10 453.5K2. or 5.2 percent more than in 1956. Unlit Treasury currency destroyed
totaled 59.606.100 piece1-. or 15.1 percent above the preceding
year. There were further increases during Ihe year in the number
of issuing and paying agents for !)aving:- bonds. of Trea..ury Tax
and Loan AC4.:ounK and of Federal tax depositorie1-.
It is the cstablished policy of the Hank to examine all state
member banks. including trust departments of those exercising
fiduciary powers. at least once each year. The EXAMINATION
DEPARTME T also makes investigations in connection with
applications for Federal Reserve membership. tor permission to
exercise trust powers. and for national bank charters. During 1957
the department conducted 175 ex.aminatjons and investigations.

Membership in the Federal Reserve System at the end of 1957
included 634 banks in the District. comprising 499 national
banks and 135 state member banks. The net increase of one in
membership during the year was the result of the opening of six
newly organil.ed or converted national banks. the withdrawal of
four state banks from member:..hip. and the inwlvency of one
state member bank.
At the end of 1957. 1.000 banks in the District were remitting
to this Bank at par for checks drawn on them. representing a
year-to-ye:lr increa:.e of 15 banh. The number of nonpar banks
declined to 84 at the yeolr end from 89 :l year earlier.
The primnry functions of the RESEARCH DEPARTMENT
are the collection. analysis. and interpretation of statistical information and the continuous appraisal of economic and banking
developments to service the needs of the officers and directors of
the Bank. the Board of Governors. member himk ... bll"ine"'1- and
industrial concerns. and the general public.
During 1957. these activities were intensified. and certam
shifts in cmphasis were mHde in the light of trends in economic
conditions. the problems of central bank policy. and the necd~
for specialized information. The department also increased the
number and scope of special surveys. expanded its work on special
studies. and broadened the coverage of statistical data and other

information in an effort to improve the quality and scope of its
analyses. interpretations. and apprni1-als of cconomic trends.
The dellland for the department's pres." releases and publications - including the Hwi"e.\.\ Ri'I·iell'. Agricuill/ral Neil'S 0/ fi,e
Wet'k. ~lIld Farm lIIlIl Rime" HIIJlelin - continued to expand.
Moreover. requests received for !ltatbtical daln. economic studies.
and other special information were larger in number and broader
in coverage than in previous years.
The PERSONNEL DEPARTMENT pcrfOTlllS two major types
of services. One includes the handling of new employments. maintenance of personnel rec,)rd... iS1-ualll.:e of payroll ched.~. provision
for medical and cuisine service.... and employee counseling: the
other involves dos@ observation of laror. employment. and personnel developments as a mean1- of keeping the Bank's practices
comparable with those of other quality employer!l. Although the
personnel of the Bank and its branches. which numbered 1.020
on December 31. 1957, was 14 fewer than a year earlier, the
average for the year was up 20 as the decline at the Head Office
\\I,IS more than offset by increases althe Houston and San Antonio

Branches. At the year end, 236 officers and employees had service
records exceeding 15 years, of which 108 had more than 25
years of service.
The Bank carried out an extensive BANK AND PUBLIC
RELATIONS program during 1957 to achieve the following
specific objectives: broadening and improving public understand.
ing of the Bank's policies; building closer relationships with
member banks; stimulating objective discussions of economic and
financial problems through publications, personal contacts, and
meetings: and informing the District's business, agricultural. and
banking leadership of the Bank's services.
Although various media are utilized to make the program
effective, an important approach is the official visits to all memo
ber and nonmember banks each year to discuss economic and
banking conditions, to explain services of the Bank and how to
utilize them morc profitably, and to provide infonnation on spe·
cific operating problems. During the year, virtually all banks were
visited; in addition. many casual and special-purpose contacts
with banks served to strengthen relatjonships.
In 1957 the Bank. in cooperation with the Louisiana Bankers
Association and Louisiana State University, sponsored the ninth
series of fann clinics in Louisiana for the benefit of bankers.
agriculturalleadcrs, and 4-H Club and FFA boys. Several lunch·
cons and dinner meetings provided opportunities for System representatives to broaden contacts with business. industrial. and
educational leaders. The officers and senior staff members also
tlltended 355 banking. business, industrial, agricultural. and
educational conferences. Through sponsored tours of the buildings
at the Head Office and branches. 640 businessmen. bankers. educators. and others observed the Bank's operations and obtained
specific information about the Bank and its functions. The B:Jnk'~
live educational mills were shown to 124 audiences. and its cur.
rency exhibit was displayed on 21 occasions.
The B.lnk·s oftlcers and senior staff members IIJleu 135 speaking engagements, wilh audiences eSlimaled at 15.000 persons.
Close contact was maintained throughoullhe year with the teaching staffs of college~ and universities in the District. particularly

with teachers of economics and money and banking. In 1957
the Bank held its third Central Banking Seminar, attended by
26 instructors of economics and money and banking from 24
colleges and universities. The outstanding speakers drawn from
the Federal Reserve System and the Treasury Department pro·
vided the conferees with practical discussions of operalions and
central bank and fiscal policies.
The AUDITING DEPARTMENT. under the general supervision of tbe Audjt Review Committee of the Board of Directors.
maintained lhe audit frequency schedule for the Head Office and
branches as recommended by the Conference of General Auditors
of the Federal Reserve System and approved by the Audit Review
Committee of the Bank. In carrying oul its supervisory responsibilities. the Audit Review Comminee held eight meetings during
1957 to review audits and to discuss procedures and other pertinent matters with the General Auditor. In compliance with the
legal requirements, the field examining staff of the Board of
Governors made an examination of the Bank and its branches
as of November 25, 1957.

VOLUME OF TRANSACTIONS
HOUSTON BRANCH

1957

. $ 1,043,400,000

-31

154,932,850

+3

5,007.373

+5

203,085,,548

+3

6,879.505

-11

20,061,899,319

+2

Checks returned unpaid

101,780.494

+15

Collections handled

147,868,466

-29

U. S. Government interest coupons paid.

16,480,725

+8

Coupons of governmental agencies paid

181,455

-18

63,281,590

+1

321,681,785

+59

23.095.616,646

+10

2.215,254,572

+40

8,509,350

+15

595.155,500

+26

Discounts for member bonks
Currency received and counted
Coin received and counted
Currency paid out.
Coin paid out

.

Checks handled

MEMBER BANKS - 1957
• •.. NUMBER OF BANKS···

.

116

•... TOTAL ASSETS···
$2,978,469,000
T _e. TOTAL DEPOSITS·_·
$2,721,229,000
T _.. TOTAL LOANS - - $1,085,437,000

T .--TOTAL

INVESTMENTS···
$916,261,000

T ... TOTAL

CAPITAL ACCOUNTS···
$214,507,000

Percent change
1957 from 1956

Postal money orders .

.

.

.

.

.

.

U. S. Government checks and warrants paid
Transfers of funds for member bonks.

..

U. S. Government securities issued, exchanged.
and redeemed. . . . . . . . .
Securities of governmental agencies issued,
exchanged, and redeemed. . . . .
Purchases and sales of securities for investors

VOLUME OF TRANSACTIONS
SAN ANTONIO BRANCH
1957
.

. $ 426,981,500

+12

Currency received and counted .

181,766,977

+6

6,125,321

+2

152,671,100

+6

5,191,820

+4

8,872,706,559

+4

Checks returned unpaid

44,435,267

+16

Collections handled

78,412,924

+5

U. S. Government interest coupons paid

14,554,825

+14

133,732

+27

54,689,113

-2

787,492,989

+18

4,826,011,069

+19

1,314,827,882

+25

2,627,000

+1,005

419,042,800

+17

Discounts for member bonks.

Coin received and counted
Currency paid out
Coin paid out
Checks handled

MEMBER BANKS - 1957

T

---NUMBER OF BANKS-·94

T -_. TOTAL

ASSETS - -$1,330,261,000

T --- TOTAL

DEPOSITS--$1,233,823,000

T --- TOTAL

LOANS--·
$425,683,000

T ---TOTAL

INVESTMENTS - - $540,283,000

T ---TOTAL

CAPITAL ACCOUNTS - -$89,625,000

Percent change
1957 from 1956

Coupons of governmental agencies paid
Postal money orders
U. S. Government checks and warrants paid .
Transfers of funds for member banks .

.

.

U. S. overnment ecurities i ~ved, exchanged,
and redeemed . . . . . . . .
.
Securities of governmental agencies issued,
exchanged, and redeemed . . . .
Purchases and sales of securities for investors

VOLUME OF TRANSACTIONS
EL PASO BRANCH
1957
Discounts for member bonks.

.

. $

4,510,000

-37

141,435,900

+10

1,042,751

-2

99,007,918

+16

2,982,050

-11

4,100,501,882

+25

Checks returned unpaid

18,498,269

+2

Collections handled.

26,265,755

-9

Currency received ond counted .
Coin received and counted
Currency paid out
Coin paid out
Checks handled

MEMBER BANKS - 1957

Percent change
1957 from 1956

.

~ ... NUMBER OF BANKS···

U. S. Government interest coupons paid

2,675,970

+7

44
~ ... TOTAL ASSETS ...

Coupons of governmental agencies paid

43,555

+7

34,161,509

+41

479,309,683

+30

2,675,082',295

+33

375,646,008

+64

$743,263,000
~ ... TOTAL DEPOSITS···
$685,938,000
~ .-. TOTAL LOANS··.
$263,107,000
~ ... TOTAL INVESTMENTS···
$2 7,700,000
~ ••• TOTAL CAPITAL ACCOUNTS···
$51,740,000

Postol money orders

.

.

.

.

.

.

U. S. Government checks and warrants paid.
Transfers of funds for member banks .

.

.

U. S. Government securities issued. e)lchanged,
and redeemed . . . . . . . .
Securities of governmental agencie issued,
)lchonged, and radeem d . . . .
Purchases and sales of securities tor investors

0
71,236,200

+26