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FEDERAL RESERVE BANK OF DALLAS
ANNUAL ~58
REPORT
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
The outhwe t e nomy foll wed
pattern of reces ion
and recov ry during 1958 clo ing the year on an upward
trend. conomi condition in thi area reflected a mixture
f record performanc in me egments countered by ratber
evere curtailm n in ther. The d wnward inliu n e' in
1958 wer trong n ugb t ca e a mall decline in t t l
economic activity during the fir t half 0 the year but a
br adly based r covery rno ern nt d minated the la t 6 months.
Perhap the outstanding feature of the recession w the
elective nature of its impact. In general mineral produce
and durable goods manufacturer received the great t etbac , bile nondurable good manufacturer, ranchers and
fanner and ervice finance,
nslructi 0, and real-e tate
concerns u, tained or increased their perations. Only a mall
degree f cumulation was evident in the reces i nary force
- largely through the effect upon the oil indu try, it upplier and ervice firms. and oil field equipment producer.
Moreover, there were orne econdary effec of the declines
in the transportation equipment industri
particularly upon
ubc ntractor . The reces ion wa hort and the probl m
inherent in long peri d of rising unempl yment and reduced
income were n l ignificant to the outhwe tern economy as
a whole.
Through ut 1958 a few egments of the southwe tern economy howed real trength. The 010 t important f tbe ewer
the agri ultural and c n truction industries. The agricultural
gain in 1 5 were a continuation of the upward trend tbat
commenced in early 1957 after I og years of drougbt. The
principal factor in the gain w the steady and wide pread
improvement in rnoi ture c ndition which r ulted in b tter
range conditions ad quate forage, and abundant crop.
D pite acreage \ ithdrawal by placem ot in the A rage
and onservation R er e f tbe
il Bank and furth r limitali n by acreag aU lmen and qu ta, r p pr duction in
the uthwe t reach d ne ree rd in both value and olume.
Re rd yield brought c tl n pr duction to 6,035000 bale
r 15 percent above a year earlier. Rice OID, wheat grain
orghum , and hay al 0 howed higher production Ie els,
a
re ult, ca h receipt from crop ro e bout 39 percent ver
the 1957 total, e en though prices for crop av raged percent
les than a year ago.
Live tock perati n 0 farms and ran bes cent red up n
the resto king f herd, which had been ut back harply during the drought year, Encouraged by the fa arabI m i ture
situation, rapidly inlproving range ondition and large feed
suppli ranch r began rebuilding herd thu restdcting the
supply of salable cattle.
on equently, cattle pric s r e
sbarply a eraging 39 percent a ve tho e in the preceding
year and cash r ceipt fr m live tock operati
increa ed
n arly 16 percent from 1957. By the end of 195 , re~to king
was well und r way, and marketing began t ri e e onally.
o er-all farm and ranch perati n in 1958 br ught ca h
receipt to nearly 28 percent ab e th 1957 level. Howe er
with continu d incr as in c t f operation net farm income
howed a gain of about 25 percent during the year.
on tcucti n e perienced an upward urge in the uthwe t
in 195 . Re idential construction tarted rather I wly but
gathered peed quickly as ne Gov rnment leg' lation and an
e i r m ney market pr vided an abundant upply of m rtgage ill ney, term f FHA and A loa were liberalized
and the A program wa extended. Re idential contract
award ro 29 percent over 1957, with home building con-
REVIEW AND OUTLOOK---
centrated upon the 1 0 0-$13 5 0 price class. principally
beau e of the favored terms for the ale of ucll mortgage
Lo the FNM.
nr id ntial award a1
howed renewed
trength to reach a level of 10 percent ver the pre iou year,
as local government pushed forward in tbe construction of
new schools and ther institutional building. Moreover industrial con truction contract award were higher than in 1957,
contrary to the nationaJ picture.
Further trength came from th pubJi wor
e t r f c ntruction, although the 3-percent increas over a year ago a
Ie n ticeable than the gain in either Ie identiaJ or nome idential building. Con tructi n of new highway one f the major
type of public w rk moved rapidly ahead with pecial edera! Government a j tance. In addition, bonds were approved
in 1957 and early 1958 for
er, treet and ther ervice
improvement con tructed in 1958. arge bond approval in
ovember indicate a heavy chedule of uch coustructi n
in 1959.
Judging from mployment developm nt in the constru tion industry the large volume of work was handled in n
effi ient manner.
n tructi n employment averaged 1 percent
les than in 1957
hile th total o]ume of work increased
15 percenL. Perbap the major reasons for the improved productivity were the a aHability of UDU ed capacity in industry
and increa ed mechanization.
Oen rally upporting the southwe tern economy during
1958 were the activitie f mane and ervice concerns and
government employment gain for which ranged ir m 2 to
percent over 1957. De pite harp employment decline in
mining manufacturing and transportation and public utiliti s
t tal nonagricultural emp] ym nt averaged 4,277 000 w deer
and was only 1 percent below 1957. The expan ion in G vernment operations stemmed partly from renewed activity at
defense plant and partly from the increasing number and ize
f educational institutions.
The growth of 'ervice cone rns re ult d fr m the generally
high Ie el of consumer pur ha ing. ven retail trade th ugh
harply lower in the early months of the year totaled about
the arne
in 1957. Reduced aJ at mo t maj r durable
goods outlets were effectively count red by higher ale t n 0durable goods tore and ervice establishment. The mo t
ignificant declin in the Eleventh District, a in the arion,
was in the sale of new automobile.
MAJOR TYPES OF NONAGRICULTURAL EMPLOYMENT
FIVE SOUTHWESTERN STATES
The
u taining influence of consum r buying was made
ontinued high level of personal income.
Although wage and alary payment declined with the ri e
in unempl ment and the redu ed workweek for rna t factory worker during the fi t balf f 19-8 there were m
ignificant off et . A marked gain in farm incom rising unemand further increases in
ployment compensation pc ymen
wag rate of many employee oft's t the deeM • and total
peronal income ro e lightly from the year-earlier level.
po sible by th
While the above-menti ned areas of trength nd upport
in the uthwe tern can my were e ident to most ob erver ,
weakn
in a few ect r c rnmand d much more attention.
o
PERCENTAGE CHANGE, 1958 FROM 1951
SOURCE Slate tmploymenf OCJ1ltu:les
CASH RECEIPTS FROM FARM
MARKETINGS
Five Southwestern States
1958 (est.)
$3.9 billion
1957
$3.1 billion
CONSTRUCTION CONTRACT
AWARDS
Five Southwestern States
1958
$3.9 billion
1957
$3.4 billion
DEPARTMENT STORE SALES
INDEX
Eleventh Federal Reserve District
1958
159
1957
159
WELL COMPLETIONS
Eleventh Federal Reserve District
1958
1957
•
. 21,359
. 24,928
CRUDE OIL PRODUCTION AND REFINING
ELEVENTH FEDERAL RESERVE DISTRICT
gAILy AVEft.AGE.
MIL-LIO S OF" 8ARRElS
MILUONS OF l!AfiRELS
4.0
40
-----'---------135
/ CRUDE OIL PRODUCTION
30~---==~~~\--2.5
'f---------i-~==~~:..---____l2.0
CRUDE RUNS TO REFINERY STILLS /
I 5'----:::19c;;:57:;-------'-------;-:19:-::5~8- - - - - - , - 1.5
SOURCES Amerlcoll P,troltum Institute
U.S.Bureou of Mints
TEXAS INDUSTRIAL PRODUCTION
SEASONALLY ADJUSTED
k"5,:;;E>l:....-.
----'jIH;~~
(_
.._47,-4_9._'O_OI
22.51-------
-~--------____i
Forem t among th e were the mining industrie , particularly
petroleum. International problem were n imp Itant fact r in
the 12-percent decline in Di trict crude oil pr duction from
1957 to 195 . The problem began with the udden termination of the uez cri i , whi h gr ally reduced exports of rude
il. inee d me ti pr ducti n adjusted 1 wly t the lower
demand., a sharp build-up of inventorie e urred in the eeond
quarter of 19-7. inlultane u ly, crude oil import [0 e
harply, thus ompli ating the over upply ituation further.
With demand leveling becau of the recession the petroleum industry w' forced to decrease production dr tically
for nearly a year to liquidate the e ce i e inventories. Total
imp rt were curtailed from the early 1958 pea but till averaged 9 percent above 1957. prin ipally as a result of th
2-p rcent in r e i n refined produ t impor.
g neral
overcapacity ituation de eloped at all levels in the petroleum
industry during early 1958 and, even with the recovery movement, wa till evident at the end of the year. Di triet drilling
activity fell about 14 p rcent but r finery runs averaged only
6 percent below 1957.
Other type' of mining generaUy foll wed the national patterns for their r pective pr ducts. opp r, lead. and zinc
mining as topped aJ.m t entirely in early 195 ; ho ever
mea urable recovery as apparent b late urnmer, and fuU
peration developed at orne mines in the fall. Pota h mining
in ew Mexico was cut back in the ummer.
2001--------+----"""=-------;
NONDURABLES
175
...
"","_~-------i150
.-.
,-
I2 5 1 - - - - - - - - + - I00L--
--'---1957
.
-----1125
...,..,,-:-:--_ _---..-' '00
1958
Reflecting the d cline noted b v , industrial utput was
reduced qui kly ith the adju tments commencing in the late
pring of 19 7 and extending for approximately 1 year. As
me ured by the Te
ind x indu trial pr duction de r ed
14 percent from a peak of 173 in March and May 1957 to
trough of 149 in April and ay 195 . H wev r, the recovery
in the la t months of 1958 returned th inde to a level f
Ie than .5 percent bel w it prerec i n peak. Among the
major indu trial egments, tbe mineral ind d elined 26 percent during the re e i n, the index of durable manufacture
f 11 15 percent. and the nondurable manufacture index wa
reduced illy 5 P rcent. Th cutback' at durable go d manufacturer temmed largely !:rom the petr leum industry adjustment and from decline in transportati n equipment indu tries.
As crude oil utput decrea d drilling wa curtailed and th
demand for teel pipe drilling rig, drilling mud. cement and
many other items fell barply. At about the arne time, in mid1957 the Government lowered the rate of defense pending
and tretched out me major air raft contract '.
Among the n ndurable goods manufacturer th m st
noticeable rece ion decline wa in petroleum refining
alth ugh c rlain egment f the chemical industry also cuI
back sbarply. On the ther hand, teady or in rea ed output
wa evid nt during tb r ce sion period in the appar 1 textile
food and printing and publi hing indu uies.
In the Nation. indu trial plants
defen e sp nding and I wer ale
everely. In fact since durabl g d
hare of industrial capacity in the
the itnpa t of r duced
of automobil wa felt
producer have a greater
ation than in the outh-
MANUFACTURERS' INVENTORIES, NEW ORDERS, AND SALES
w t de line at durable plant were m re important in influencing nati nal e onomic activity.
mong the m t influential factors in the aLion' reces ion
were th barp curtailment f plant and equipment spending
and the exten i e inventory liquidation. Plant and equipment
e penditure de Lined 2.5 billi n between the fir t and f urth
quarter of 1958 whil inventory liquidation reached an
annual rate of $9.5 billion in the fir t quarter f the year. Th e
two tT nds accounted for a large part of the de lin s in new
rders to manufacturer and indu. trial pradu tion. The cutbacks in indu trial production led to employee layoff and
ri ing unempl yment. H wever, per nal income -augmented by higher levels [un mployment ompen ati n
payment, wage rate and farm income - declined only
slightly in the early part of 1958 and recovered quickly to
reach a new record in ovember. Both new capital pending
and inventory liquidation moderat d about midyear and
howed definite sign f improvement by the fourth quarter.
in the S uthwe t agricultur and construction a tivity
in the ation exhibited real trength. Farm income impr ved
markedly and new nsuuction w at record levels by early
fall. H me building and highway c truction were the tronge t e t r with publi ly financed c n truction upplying m t
of the year-to-year g j •
UNITED STATES
SEASONALLY ADJUSTED
5
Price movements were a significant fe tur f th
ation'
econ my during 1958; the Dec mber 195 Ie el of wholesale
and con um r price wer 0.6 percent and 2 percent r pectively, ab v a year earlier. Imp ftant flu tuation in farm
and proce ed-food pric
er mainly re p n ible for increases
in whole al,e price early in J958 and f' r the apparent tability
in the clo ing 6 month. The pattern of industrial ommodity
price was the rever e f farm price movements howing a
,teadily upward trend during the la t half f the year, Con,urner price fO e in early 1958 under the. timulus f previous
o in rea es but with the decline in food price in the econd
half of 1958, the total inde h Id fairly teady.
INDUSTRIAL PRODUCTION INDEX
United States
1958
134
1957
143
HOUSING STARTS
United States
1958
. 1,130,600
1957
.
992,800
STATE AND MUNICIPAL SECURITY
ISSUES
1958
$7.4 billion
1957
$6.8 billion
CONSUMER CREDIT
1958
1957 . .
. . .
+
+
$ 291 million
$2,677 million
Financial developmen in 1958 reflected the pattern of busine rece sian and recovery. During the &st 6 months credit
ease resulting fr m a lackening demand for fund w inten ifled by a trongly expansive monetary policy. ederal R erve
actions to ease credit included dlfee reductions in discount
rates three reducti ns in m mber bank reserve requirements
and pen market perations that pr m ted a high I vel of fr e
re erves in the banking sy t m. Yield on Government and
ther ecuriti
c ntinuing th decline which began in late
1957 fell to the I we tIe els in everal year.
LONG-TERM BOND YIELDS
1958
fERCE/Or fE A ANN u M
11_1_ _ 4.20
PERCENf PER ANNUM
4.2o
4.0
3.8
3.6
o
o
V'1
MOODY'S
o>-e-=-...1l--I
-- -
3.0 0
2.8 Or-J
~~
F
M
A
-
11
3.60
LONG-TERM
GOVERNMENTS
l/ V
......
3.20
~
3.80
........V
V
l7-
3.40
2.6 0
4.00
CORPORATE AOO=71
3.40
....
:---
....~
3.20
3.00
MUNICIPALS Aoo
MOODY'S
2.80
~
M
A
SON
2.60
0
allowing the end f the rece i n and the onset of recovery
yield on Government and other e urities r v rsed d,eir tr nd
ri jng harply in the ummer. In keepin a with the change in
bu ine -conditions y tern credit policie moved lightly away
fr m the aggre ively ea y policy f preceding months. In
August everal Re erve banks raised di count rales to 2 percent.
reeov ry continued credit markets tended to firm
moderately and in October and
vember. dis unt rate
were rai ed again t 2lh percent. At the year nd yield on
long-term Go ernmen were appr imately three-fourths of
1 p rcentage polDt above their April low and rates on
3-month Trea ur bill had risen to 2.74 percent from the low
of 0.64 percent in May.
Despite the relatively sharp increas in interest rat during
the latter half f the year pre UI in redit marke f r the
year as a hole weI considerably 1 ss than in 1956 or 1957.
Diverg nt movem nt
urred with respect to particular type
of credit. Financing by tate and local go ernment . re p nding br' kly t the easier credit conditions, ad ailC d to a record
total of 7.4 billion. orporate bond issues while Ie s than in
1957 were ustain d at a high level' public utilities were
especially active borrower of long-t rm fund . With pending
for automobile and other durable at reduced levels, con umer
credit ro only 291 milli n - th smalle t annual increase
in the po twar period. Mortgage debt xpanded harply con. tent with the up urge in r idential construction that began
in the pring. Tre ury ca h financing f 16.3 billion added
to market pressures, especially in the second half of 1958,
wben new money borrowed by the Treasury totaled 59.5
billion.
Although commercial bank loans increased $4.0 bilJion.
most of the increase occurred at banks outside of the ation's
financial centers. The recession was not as severe in the lessindustrialized areas of the country: in addition. agricultural
loans rose markedly. reflecting a gain in certificates of intercst
issued by the Commodity Credit Corporation, as weU as the
general improvement in agricullUral conditions. At city banks.
a sharp contraction in commercial and industrial credits largely
offset expansion in othcr types of loans. The reduction in business loans was associated mainly with the high rate of inventory liquidation during the first three quarters of the year.
Moreover, many business corporations used funds obtained
through bond and stock flotations to reduce b::tnk indebtednes~.
The llexibility of Federal Reserve credit policies was again
demonstrated in 1958. In late 1957. System policy had
been shifted from restraint toward ease as business activity
declined. The System vigorously promoted monetary expan
sion during the first half of 1958. The reductions in discount
ratcs lowered the cost of borrowing to member banks. exerted
some influence on the interest rate structure, and indicated
clearly that credit policy would be used actively to combat
recession. The reductions in reservc requirements provided a
powerful force promoting bank credit expansion. The S 1.5
billion of reserves released by the reductions. along with nel
purchases of Government securities totaling $ 1.2 billion during
the 6-month period. more than offset the restrictive impact
of a $1.4 billion gold outflow. Net free reserves of member
banks rose frolll negative levels in late 1957 to a monthly average of almost $500 million in March. rcmaining close to that
level through July.
4
The rapid increase in availability of bank rcserves tended
to cushion recession and foster recovery in several ways. In
the first place. ready availability of bank credit helped to pro-
mote orderly adjustment of inventories. A shortage of credit
might bave reinforced reccssionary pressures by hampering
orderly inventory liquidation. which took place at a record
rate during the first 3 months of the year. Secondly, the
expansive policy assured that banks had sullicient funds to
meet all reasonable demands for credit. The business loan
decline during the recession reflected a genuine decrease in
demand. rather than a shortage of funds for lending.
Finally, the ease in credit conditions promoted rapid growth
in bank credit. By the end of January, commercial banks had
reduced their borrowings from Reserve banks to a relatively
low level. Thereafter, confronted with weak loan demand and
growing availability of reserves. banks aggressively sought
Government and other securities. Moreover. the volume of
securities attractive to banks expanded as the Treasury sold
new issues of intermediatc maturities and state and local
governments increased their offerings. By acquiring these securities. banks obtained highly marketable assets and, at the
same time. bolstered earnings. Reflecting primarily the growth
in holdings of securitics. bank loans and investments expanded
$9.9 billion between thc end of January and the end of July.
Total bank deposits rose by about the same amount; the money
supply increased at an 8-pcrcent annual rate. The rapid growth
in the money supply, which is in sharp contrast to developments in pre-World War II recessions, was a strong financial
force tending to cushion recession and promote recovery.
The rise in bond yields that began about midyear was even
sharperthan the decline in late 1957 and carly 1958. The turnaround in interest rates resulted mainly from a revision of
views concerning the business situation. Many holders of
Government and othcr debt securities re:\soned that if recoverY
continued, and especially if it were characterized by inflution""ary developments, cr~dit dcmands would increase. T1Ionet<lry
policy would be shiftcd toward restraint, and interest rales
would rise. This reasoning led to anticipatory actions in the
market which tended to forcc bond prices down and interest
rales up. Monetary policy did not change significantly until
BANK LOANS
1958
1957
+
+
$4.0 billion
$3.6 billion
BANK INVESTMENTS
1958 .
1957 .
+
+
$10.4 billion
$ 1.3 billion
BANK DEPOSITS
1958 .
1957 .
+
+
$12.8 billion
$ 3.8 billion
FEDERAL DEBT
1958
+
$8.0 billion
1957
-
$1.7 billion
Aug t· by that tim yield on I ng-term Government had
already Ii en by about one-half of 1 percentag p int and bill
rat had increased from Ie than I percent to clo
t
2 percent.
Other important factor promotin the upward trend in
inter t Tat included: (1) a gr wing r alizati n that the
reasury would have to finance record peacetime deficit in
fi cal year 1959' (2) larg - cale liquidati n of peculative
h ldings of bond that wer built up in late 19 7 in early
958 and particularly in conn ction with the Treasury' JUD
financing peration' and 3 a tendency on the part of many
ob ervers to accept the inevitability f inflation.
ill mid-July, at the time of the Middle Ea t crisi , pre ure
n the G vernment e uritie market b came ever . In order
t correct a di ord rly market ituation and to a . t ao e pecially d.iffi ult Treasury refunding th Sy t m purchased
1.3 billi n f Governm nt
ther than bills, including a
mode t amount of long-term bonds. In view of the developing
bu ines situation coupled with the factthat bank re er p itions were already quite easy the funds injected thr ugh the
upport purcba ewer qui kJy ab rbed. Availability of
r· rv wa curtailed furth r in ucceeding we ks' free re rves
declined from an averag f 546 milli 0 in July to 383 mil)j n in Augu t. Incr a e. in discount rate to 2 perceot at f ur
R erv banks in the latter part of ugust confirmed that
monetary policy w
hifting away from aggr iv a e,
By September free re erve bad declined to about ] 00 millioo and remained I e to that Ie el until mid- ov mber.
Economi reeo ery broadened and c ntinued at
atisfa tory
pac, and in Octob r and ovember, th Re erve banks
increa ed d' count r te to 21;2 p rcent. In December ill ney
market pre sur firmed light! partly as a re ult f easonal
force and partly a a re ult of reduced availability of re erve
- a reflected in a return to net b rrow d re e ve at member
banks. Howev r. m netary pr ure in D ember were by n
m ans e er a
mpared with earHer peri d of eas nal
stress: money market rates were still below the peak levels Lhat
prevailed in the latter part of 1957. Thus, by the end of 1958,
the credit ease of the first half of the year had been replaced by
a modest degree of monetary restraint.
Treasury debt operations in the first half of 1958 reinforced
the expansive monetary policy. With reserves readily available
and loan demand declining. banks were eager to acquire Government securities of intemlediate maturity. which normally
carry a higher interest return than securities of short maturity.
Excluding bills, new issues of Treasury securities during the
first 6 months totaled $31.7 billion. including $17.2 billion
of 4- to 9-year maturities. Banks obtained about 60 p~rcem of
the initial distribution of these issues; growth in bank credit
and the money supply during the recession was stimUlated.
The Treasury also made significant progress during the first
6 months in lengthening the maturity of the Federal debt. In
addition to the intennediate-term securities mentioned above.
the Treasury issued $2.9 billion of long-tenn bonds. Consequently. the average maturity of the debt increased from 55
months at the end of 1957 to 63 months in mid-1958. However. market pressures induced the Treasury to rely primarily
upon securities of short maturity during the latter half of the
year, with the result that the average maturity at the end of
1958 was only 2 months longer than a year earlier. During
the last 6 months, new issues of Treasury securities (including
increases in the weekly Treasury bill tender amounting to
$1.6 billion) totaled $34.7 billion. of which $30.6 billion
consisted of issues maturing in 13 months or less. While a large
portion of the new issues W,IS acquired by nonbank investors,
the heavy reliance on short-term financing inevitably resulted
in considerable expansion in commercial bank holdings of
Governments.
New techniques in Treasury debt management in 1958
included "premium pricing" of a new issue in June, "discount
pricing" of two issues in December. and introduction of a
6-month Treasury bill in December. The ability to olTer secu-
rities at other than par prices alTords greater nexibility and finer
pricing in debt operations. The new 6·month bills - which
are issued weekly on an auction basis. along with the traditional 3-month bills - were well received by the market. It
is hoped that the Treasury. by shifting some of its I-year debt
into the new bills. will be able to reduce the size of its frequent
certificate maturitjes.
The most significant development in Eleventh District banking in 1958 was the sharp increase in major balance sheet
items. Total resources advanced $999 million. or about 9 percent. to a record high of S I 1.633 million, reflecting an II-percent gain in loans and a 14-percent increase in investments.
The expansion in assets was paralleled by a $959 million rise
in deposits to a record volume of $10.660 million. Demand
accounts advanced 7 percent. and time deposits rose 25 percent. Member banks added 51 million. or 6 percent. to their
capital accounts.
The large growth in loans. as contrasted with a gain of Jess
than 5 percent in the Nation. was indicative of the relatively
slllall impact of the recession in the Southwest. Loans of member banks in t.he District advanced persistently throughout the
year. but almost two-thirds of the total gain occurred in the
fOllrth quarter. The nature of the loan expansion is brought
out by examination of loan trends at weekly reporting member
banks, which accounted for the major portion of the increase.
The e~pansion was concentrated in business loans, particularly in the petroleum and construction categories. The rising
level of construction activity in the District contributed to a
sharp increase in construction loans and real-estate loans.
Agricultural loans of District mcmber banks rose substantially,
reRecting primarily an expansion in ccrtificates of interest
issued by the Commodity Credit Corporation. Bank loans to
finance the purchasing and carrying of securities also advanced.
The only loan category which showcd li slackening from the
1957 growth rate was consumcr loans, which were influenccd
by the reduction in consumer spending for automobiles and
other durable goods.
FEDERAL RESERVE BANK OF DAllAS
(Chairman and Federal Re ene I'gellt). Pre ldent, Pioneer Hydrotex Industries, Inc., Dallas, Texas
IDept/ly Chairman). Rancher :lIld Fee"~r. Dcxler, 'ew Mexico
SMITR
BooL
Induslria!i~'!
hnirrnan
PreSident.
hnirman
PrCIIldenl,
President,
Pre ldent.
and armer, Henderson. Texas
uf the Il ard, Amlerson.
nylon and ompany. Inc.• Houston, Texas
The lly aeional Bank of aylor. Taylor, Texa
of the Iloard. Lone .lar Gas Compan , Dallas, Texas
eurlly late Bunk & Trust ompany. Rall , Texas
lOl Paso National Bank, E1 Pa!lO, Te as
H. B. Zachry
mpany. an Anlonio. texas
El PASO BRANCH
D.
(hairman),
TMtMANN
halrman of I he Hm"d and Trea:;urer, tahmann Farm . Inc., Las Cruces, New Mexico
Tbe Marla IItionat Bank, Marfa. Texas
Pr' ident, The ir>t ational B k of Mldland. lIIlidln.nd. Te"as
VIce President. The FiThI 31ion 1 Bank f R weU, Ro~we\l •• ew Mexico
DirectQr of Research. El Paso aLllral Gas ompany, EJ Pa'\{), Texa
Presiuenl,
uthwest
all nal Bank of £1 Pa , I Paso. Texas
Elfitor and Publisher. TII~ ArlwlIi.l Dal/,· lar, Tucson. Arizona
F. W. BART
JOII P. BUTLER
Prc~idcm.
-L YO OIlLDR
Dy
E. HOLCOM 8
PH F. IR I
WILl.IAM R. J LA rUEW
RT
JO.
HOUSTON BRANCH
JOHN
(Chairllla,,). Vice Presiuent and Genera! Manager.
H UqlOn. Texa.,
exas Distribution Division,
nited Gas Corporation.
President, The merlcan ational Bank of Beaumont. Beaumont. Te as
Prc,ldem, The VI tori.. litlonal Bank, lctOrill. Te. '"
!'r"siuenl. The lIll nat Bllflk or Commer e of H u,t n. Hou IOn, Te~llS
i e Pre idem and Director, Lu kin Foundry
Ma hine Comp n , Lufkin. TeJl.3l
Vice 'bairlllilll vi the Bard. Tex
ali na! Bank of Houst n. BOlli,'!on, Texas
Heau. Depanmenl of grlculturnl Economicq and
ciology. A. & M. ollege of rex as, College Station, Texas
SAN ANTONIO BRANCH
Re~arch institute. San
monio. Texas
Professor of Eeonoml ,The Onlver It of cxas, uSlln. 1 e. a
Preslde.nt, First .tiona! Dank t an Ani nio•• an AnlOnill. Texas
President. I he Fir.l Miona! Bank of Rarlinllen, Harlingen, Texas
Chainnlln of the E ccmh'e Commlltce,
rpus hri Ii late alional Bank, Corpus Christi, Texas
le~ !'re idem, The
alional Bank. Auslin. Texas
Icc Prc.,ident, Ge .
3ughan
'n~. an Amonio. Texas
(Chi/irma,,), Pre idenl. outh",,,,,t
FEDERAL ADVISORY COUNCil MEMBER
WALTER
B. JACOBS
I
Chairman of the Board, The First National Bank of Shreveport, Shreveport, Louisiana
DIRECTORS
STATEMENT OF CONDITION
ASSETS
Gold certificate account . . • • . •
Redemption fund for Federal Reserve notes
Total 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 loons and securities
Due from foreign bonks
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
Capitol paid In. .
Surplus
. . . . .
Other capitol accounts.
TOTAL CAPITAL ACCOUNTS
TOTAL LIABILITIES AND CAPITAL ACCOUNTS
Dec. 31,1958
Dec. 31, 1957
$ 721,519,040.41
29,844,811.17
751,363,851.58
28,332,800.00
14,687,218.53
1,680,800.00
0
$ 808,001,430.00
28,495,116.17
836,496,546.17
21,148,300.00
12,828,212.31
14,825,000.00
0
88,152,000.00
730,529,000.00
112,325,000.00
97,292,000.00
1,028,298,000.00
1,029,978,800.00
754.79
242,746,905.33
7,786,446.96
5,917,036.29
2,080,813,813.48
38,545,000.00
781,178,000.00
0
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
798,612,775.00
748,183,830.00
969,769,135.15
30,629,942.35
12,220,000.00
2,778,528.67
1,015,397,606.17
196,450,758.56
709,588.74
2,011,170,728.47
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
20,683,700.00
43,436,299.36
5,523,085.65
69,643,085.01
$2,080,813,813.48
"ncludes, prior to September 2,1958, Section 13b surplus of $1,307,124.72.
19,405,250.00
* 42, 178,208.Ql
5,506,100.24
67,089,558.25
$2,053,793,169.01
REVIEW OF
Total re our e of the Bank on Decemb r
31, 195 whi b amounted to $2 0 0 814,000
ere 27,021,000 high r than a year earlier.
This relativ J mall incr a e c ncealed veral
fib tantial and larg 1y counterbalancing
change among indi idual item , orne of which
re ulted directly from the effec of Feder J
Re erve policy. Gold certificate re erve
declined
5 133,000 reflecting the outflow
f fund fr m til
Ieventh District in payment
f r Uli Bank', in rased partlcipati n in the
f
overnment ecuritle.
tern' holding
Th n t incr
[98,777,000 in the participation temmed Ir 111 net purchase. by the
y tern Open
ark t
count t
uppI
n~~erve to member banks. Loans and advan e
by the Bank to it member bank' av raged. ubtantially lower than in 1957.
Thi' Bank Federal R r e n t ircul ti n
e to a new peak durino the ear and n
December 31 totaled 798,613,000, r pre. enting a net gain of 50.429.000 ver D cember
I 1957. Year-end reserve baJan c of memer bank d dined 2 ,454.000 from n year
ag d pit the ub, tantial increa e in dep si
at m mb r bank. This decJin i attTibut bl
to r duction durin February March and
pril in the p rcenta e f re erves that member
banks ar required t maintain at the Fed ral
Re erv Bank against their n t d mand depo TO
EARNINGS AND EXPENSES
1957
19S8
)PERATIONS
CURRENT EARNINGS
irs. Dep . it of th
nit d tate Trea ury
remained virtuall unchanged from a year
earlier but foreign dep it decrea ed
5512,0 0, which reflect thi Bank' pro rata
hare of foreign dep i withdrawn fr m th
Federal R serve Bank f
w York b central
ban of other c unlries. The Bunk' paid-in
capital rose 1 278.450 during 195 , and the
increase w a direct outgrowth of addition f
about $42.6 million to the apital and urplu
ace unt of member banks in the District.
.
.
.
U. S. Government securities.
All other.
.
.
.
.
•
.
TOTAL CURRENT EARNINGS.
168,848.30
0
28,717,892.12
15,805.73
$
791,239.03
0
28,792,666.83
13,842.04
28,902,546.15
29,597,747.90
7,249,300.70
308,700.00
6,844,766.62
388,700.00
181,027.00
26,161.00
144,221.00
22,143.00
7,765,188.70
7,399,830.62
1,137,382.38
1,107,327.00
6,627,806.32
6,292,503.62
22,274,739.83
23,305,244.28
6,490.32
63,295.09
6,940.95
135,349.16
69,785.41
142,290.11
16,869.99
855.33
15,707.37
403,386.00
17,725.32
419,093.37
52,060.09
22,326,799.92
18,620,110.49
1,196,810.00
-276,803.26
23,028,441.02
18,545,291.76
1,119,714.60
2,509,879.43
3,363,434.66
CURRENT EXPENSES
Current operating expenses.
•
•
.
•
.
.
Assessment for expenses of Board of Governors
Federal Reserve currency
Original cost, including shipping charges.
.
Cost of redemption, including shipping charges.
Total.
urrent earning of tb Ban during 1 5
amounted t
2 ,90 00 , repr senting a
d ere e f 695.000 fr m 1957. while net
e p n es of 6,628.000 w r up 335.000.
The reduced arning were due to the decline
in tJle amount of di c tints and advance and
the 10 er level of int re t rat . After giving
effect to net addition. to current earning, net
earning during the year totaled 22, 27 0 O.
or 701,0 0 less than in 1957. Of total net
earning, 18, 20,000 was pa id to the
ruled tal. Tr a ury a interest n Federal
1,197,000 wa paid in diviRe erve n te
dend to m mber bank and 2,510.000 wa"
lran ferred t
urplus. On Dec mb r 31,
1958 the paid-in capital of the Bank totaled
20 684 000, wlljle the surplus account
amounted I $43,436,00.
$
Discounts and advances.
Industrial loons.
.
.
.
"
..••.
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 .
.
.
Total deductions
.
.
Net additions or net deductions (-)
Net earnings before payments to U. S. Treasury
Paid U. S. Treasury (interest on F. R. notes) .
Dividends paid .
.
.
Transferred to surplus.
.
.
.
.
.
.
.
FEDERAL RESERVE BANK OF DALLAS
President
First Vice President
WATROUS H. IRONS,
W. D.
HOWARD
J. L.
ARRI IiER
OOK,
GENTRY,
ice Presidelll
ARTHUR
ice Pre -idellt
H.
J{
MOORE
W. E. EAGLE, Vice Pre idem
T.
H. LAN ,
Imeral A /lditor
Assistant Vice President
H. B
s i tallt Cashier
RG,
H RDI , Vice Presidem
L.
JAME
AUTH
, Assi
taJ/1
ashier
G. R. MURFF, Vice Presidem
W.
H RM
T. W.
. G.
PLANT,
Vice Pre idellf /ll/d
w. M.
Vice Presidelll
PONORO 1,
I M
Assi talll Cashier
PRITCRETT,
As i -tulII Co hier
lIshier
OLOW 1.1.,
I'HlLlI'
H. RIC, ice Pre ·idellt lIl/d
Secretar of the BO/lrd
Director of Re 'eorcll
10RGAN
fo
A. J:fUFORD, Vice Pres/dew alld
General COl/llsel
HARRY
JAME'
• HOL EY, JR.,
A.
PAR
R,
Chief Examiller
Director of Pel' ollnel
F. Ruoy Assistant Counsel fmd
Assistallt Secretary of tile Board
.
AJ.KER Vice President and
Economic Adviser
GEORGE
CHAlU.S
EL PASO BRANCH
HOWARD
FREDRIC W. REED,
ARRITHERS,
Vice Pre ident
ill
Charge
T. C.
Cashier
ARNOLD,
Assistant Cashier
THOMAS R. SULLIVAN,
Assistant Cashier
HOUSTON BRANCH
J. L.
W.
C.
HARTUNG,
OK, Vice Pre idellf ill
B. J. TROY, ashier
Assistant Cashier
IlOrge
SAN ANTONIO BRANCH
W.
E. EAGLE,
A. E.
ALVIN E. RUSSELL,
Assistant Cashier
Vi e Presidellt III Charge
DT, Cashier
FREDERICK
1.
SCHMID,
Assistant Cashier
OFFICERS
OFFICERS OF FEDERAL RESERVE BANK OF DALLAS
AND ITS BRANCHES
March 1, 1959
WATROUS H. IRONS,
HARRY A. SHUFORD,
HOWARD CARRITHERS,
JAMES
J.
L.
L.
CAUTHEN,
COOK,
President
First Vice President
Vice President
Vice President
GEORGE F. RUDY,
Vice President
General Counsel and Assistant
Secretary of the Board
ROBERT H. BOYKIN,
W.
E.
EAGLE,
Vice President
CARL H. MOORE,
T. A. HARDIN,
Vice President
G. R. MURFF,
Vice President
T. W. PLANT,
L.
Vice President and
Secretary of the Board
Assistant Vice President
Assistant Cashier
Roy E. BOHNE,
Assistant Cashier
HERMAN W. KILMAN,
Assistant Cashier
W. M. PRITCHETT,
Assistant Cashier
Vice President
MORGAN H. RICE,
Assistant Counsel
H. BERG,
E.
Vice President and Cashier
G. PONDROM,
General Auditor
ARTHUR H. LANG,
PHILIP
E.
COLDWELL,
Director of Research
Moss E. HULSEY, JR.,
E. WALKER, Vice President and
Economic Adviser
CHARLS
JAMES
A.
PARKER,
Chief Examiner
Director of Personnel
EL PASO BRANCH
HOWARD CARRITHERS,
FREDRIC W. REED,
Vice President in Charge
Cashier
T. C. ARNOLD,
Assistant Cashier
HOUSTON BRANCH
J.
L.
COOK,
B.
W. C.
HARTUNG,
Vice President in Charge
Cashier
J. TROY,
Assistant Cashier
THOMAS R. SULLIVAN,
Assistant Cashier
SAN ANTONIO BRANCH
W. E. EAGLE,
Vice President in Charge
Cashier
A. E. MUNDT,
ALVIN E. RUSSELL,
Assistant Cashier
FREDERICK J. SCHMID,
Assistant Cashier
Number of Pieces
1958
Discounts for member banks
Secured by U. S. Government obligations
314
Other
Dollar Amount
1957
1958
789
1957
$ 1,012,'81,000 $ 2,649,555,000
56
3,475,000
32,417,000
Currency received and counted
152,170,000
155,499,000
887,580,000
894,499,000
Coin received and counted
257,313,000
247,973,000
25,230,000
23,690,000
855,237,000
835,704,000
30,934,000
29,661,000
Currency paid out
Coin paid out.
169,065,000
162,969,000
64,585,667,000
64,628,235,000
3,617,000
3,342,000
288,007,000
275,307,000
Collections handled.
856,000
862,000
476,155,000
449,263,000
U. S. Government interest
coupons paid .
306,000
300,000
73,906,000
64,413,000
Coupons of governmental
agencies paid .
6,000
7,000
1,370,000
943,000
Postal money orders
17,'51,000
17,954,000
310,210,000
334,287,000
U. S. Government checks
22,476,000
24,895,000
5,961,439,000
5,230,563,000
158,000
151,000
81,423,295,000
70,716,211,000
7,029,000
7,294,000
9,270,755,000
9,379,185,000
Securities of governmental
agencies issued, exchanged,
and redeemed
3,000
2,000
39,688,000
74,720,000
Purchases and sales of securities
for investors
9,000
8,000
3,666,896,000
3,071,040,000
270,000
333,000
516,670,000
523,807,000
Checks handled .
Checks returned unpaid
Traosfers of funds for
member banks
U. S. Government securities
issued, exchanged, and
redeemed
Postmasters' deposits
OPERATIONS
DEPARTMENTAL ACTIVITIES
In conjunction ith the other Re erve banks the Board of
Governor and th agencie and d partmen of th FederaL
Go ernment this Bank h
mcreas d its participation in
EMERGE C· PREPARED
S PROGR
S. The purpose of the e programs is t obtain a m a ure of capability for
survival and reconstru tion in the vent of a nuclear alta k
upon the United State. While preatta k planning and preparations ll,1ay provide a means of redu ing the imp ct upon the
banking y tern, ther are cle rly limit to such program in
both co t and r turns.
This Bank ha e tablished primary and ec ndary relocation
'ites to hich daily record f the Bank' balance sheet and of
tran actions with memb r bank ar sent. If n or all of the
p rmanent ffic of thi Bank were destroyed administrative
contr I could be re umed at the ec ndary r location ite
which is now manned by a keleton taft.
To effect check proce ing in ca e 'f an atta k the Bank
ha ubdivided the Di trict into 17 area and is pre enlly making arrangem n with bank or group f banks in e ch area
tat
our agent in the collection f checks in th event of
such an mergenc . It is contemplated that ca hagen will be
e tablished in a imilar manner at a later date.
In addition to thes pe ill
perational pr grams the pernne I of the Bank hav participated in nati nwid alert
te ting th effi iency of preparedne me ure, Training
hav been attended by certain key p rs nnel to obtain
cour
a b tter kn wledge of technique for damage
ment nd
other 10 al attack problem and as a part f the plan to train
people in handling y tern operati I OD a nati nwide basi .
A repIe entative f the Bank also attend meetings of the
R gional Bard of the Office of ivil and Defeo e Mobilization
and maint in c ntact ith ther per onnel in the Sy t m who
hav similar re p n ibiliti .
From the initial plan in 1950 th Federal Re erv y tern
ha made substantial progre ' in emergency preparednes and
planning. et further program and test n ed to b developed
to enable it t dis harg the re pan ibility for the maintenance
of an effective man tary y tern in the event f an attack.
Moreover, much remains t be d ne in the area of mmercial
bank planning to meet, at Ie t partially the problems which
might be expected to re ult from a nuclear attack.
The Bank i engaged in a BUILD G EXPA 10 A
REMODEL G PROGRAM which will in lve an expenditure of about 7.5 million. The ne can tructi n will add more
than 200,000 gro quar feet to the 150 000 contained in the
pr s nt buiLding. Th addition will consist of three floor
underground and five floor aboveground with a foundation
to support additional floor a demanded by the Bank
future requiremen .
T.he addition will be fully integrated with the pre nt building t achieve maximum unity at all floor and in the op ration
of all facilitie.. Mo t of th ele trical plumbing heating, and
air-conditioning facilitie in the existing building ar to be
replaced with new 'ysteilli to erve the enlarged building.
The new building will provide f r th handling of a h and
ecuritie tran a tion within well-prot cted area bel w
gr und level while all loading and unloading of valuables will
take p1ac within an enclo ed and tr ngly guarded ecurity
court. curity m asure will include clo ed-circuit television
by which all major activitie involving money and ecuriti
will b under continuous urveillance. Two large n w vaults
will be availabLe for the tor g f m ney and ecurities.
Excavati n for th fl r undergr und ha been completed,
and pouring of concrete f ling
all , and flo r i progresing. The ntire proj ct is ch dul.ed so that the addition and
remod ling will be ac omplished in stages, with occupancy of
th three b ements and fir t tIoor f the additi n exp ted by
lh end f 1959. Completi n of the whoLe pr gram i cbeduLed for August 1960.
CURRENCY PAID OUT
1958
$855.2 million
1957
$835.7 million
COIN PAID OUT
1958
$30.9 million
1957
$29.7 million
U. S. GOVERNMENT COUPONS
PAID
1958
$73.9 million
1957
$64.4 million
CHECKS HANDLED
(Number)
1958
169.1 million
1957
163.0 million
Th
ASH DEPARTMENT had a general increa e in it'>
op rati ns during 1958. Shipments f urrency and coin to
member banks numbered 76359. and shipments received
totaled 31 355 - each reOectlng a small year-to-year increase.
During 195 this Bank shipped $340936000 f unfit currency, or 4.2 perc nt mor than in 1957 t the Trea ury
D partment or tum d it over to th Bank' erifi ation unit
f r destruction localJy. The Ca h Depal'tment p id 12804
United States Governm nt and agenc coupon.s, which is 2.1
P rcent above 1957. Whil f wer commer ial bank. u. ed thi
Bank's facilities for the purchase and sale of Government securities in 1958, the total of 8,927 transactions was up 7 percent.
TJle
SIT D PARTMENT handled an average f
694,000 cash and noncasll coUe tion it ms per day in 1958.
representing a small increas
ver 1957. The number f city
and country cheCk handled total d 169.06500 . exceeding
th 1957 fio-ure by 3.7 P rcent. whil the number f Jovernm nt checks handled declined 9.7 percent. Postal money
order processed in 1958 deerea ed 4.5 percent, and p tal
depo it were down L9p rcent. Forthey ar the2L3,4 4000
items proc s ed by th.is Bank involving more than $72 bi.LLion,
wer lightJ larger than in 1957.
During 1958, th
ISCAL AGEN Y DEPARTME
handled 7.0 1.228 pi ces in th pro e of i suing. xchanging,
and redeeming securities with an aggre",ate value of $9310
million. The amount of savings bonds old ro e lightly while
the amount of redemptions declined 23.9 percent - bringing
about an improvement in the relationship between ale and
redemption. Reflecting th .in r a ed market activity, 51 806
piece of Go crnmen securities were tran ferred by wire. or
] 0.5 per ent mor than in 1957. The number of depositary
r eipts validated totaling 480,852. advanced 6 perc nt. Unlit
Trea ury currency destroyed totaled 58.466,300 pieces. or 1.5
percent lower than in 1957. he number of i uing agent for
saving bond decreased slightly. but the number of paying
agents rose funher during the year. Gain' were al 0 r corded
in the number f rea ury Tax and Loan
ccounts and
Federal tax clepo itari .
he LO
AND E URITIE D P RT
NT was
much le active in 1958 than in 1957. During the ear thi
Bank accepted nly 15 notes from 52 member banks involving advance f $1 016 million whereas in 1957 the Bank
accepted 845 noLe aggregating $2.682 million.
The operations of the OMNIODITY CREDIT D PARTME , which had declined in 1957 on account of the delayed
harv ling of that year s cotton crop, expanded sharply in
1958. During the year, note ecared by 2304 150 bale of
colton were rec ived and processed or nearly three times the
volume in 1957, Cotton rel a ed through the repayment of
producers' notes totaled only 158 l06 bal s although an
additi nal 1 217 85 bales were plac d under the pooling
arrangement. Th volum of the e tran actions was less than
one-half of that handled in 1957.
In erforming i ' upervi ory functjon the E AMINATIO DEP RTMENT conducted 172 e aminations and
investigations. On December 31 1958 the District had 631
n ember banks, con isting of 500 national banks and 1 1 tate
member bank and repre enting a net decline of fOUf banks
during the year, There w re 1 al4 banks in the D' trict remitting to thi Bank at par for checks drawn upon themselves
refle ting a net oain of 14 banks - compared with 15 in 1957.
The number of nonpar bank at the end of 1958 wa 83, or
one Ie than a year earlier.
An extensive BA K AND PUBLl R LA 0 S program was carried on in 195 to improve public under tanding
of th Bank policie mailltain a close and under tanding
working relationsrup between the Bank and c mmerciaJ banks,
timulate di cu i n f ec n ntic and financial problems, and
furni h economic and financial informati n. Principal activiti
in thi, field includ d regularly schedul d vi it with leventh
District banker ' meetings at the Head Office and branches
with bu me , indu trial educational and banking leader .
attendance at lDany banking educational and other conference . [oU
f the Head Office and branche by busine men,
educator, tuden' and other t ob'erve the Bank:
pera-
U. S. GOVERNMENT CHECKS
(Number)
1958
22.5 million
1957
24.9 million
WIRE TRANSFERS OF SECURITIES
1958
1957
$3.1 billion
.
.
• •
•
.
•
$2.5 billion
SALES OF SAVINGS BONDS
$179.8 million
1958
1957
.
.
• •
•
• $178.9 million
DISCOUNTS FOR MEMBER BANKS
1958
$1.0 billion
1957
$2.7 billion
tion . numero
peaking engagement by the Bank officers
and enior taff member; 10 e contact with the teaching staff
of college and uui er ili in the Di trict· and the loan of the
Bank' educational.films and currency exhibit to member
banks on various 0 casions.
AVERAGE NUMBER OF EMPLOYEES
FEDERAL RESERVE BANK OF DALLAS
NUMBER
NUMBER
1,200
1,200
~ SALARIES RECOVERABLE
_
1,000
SALARIES NOT RECOVERABLE
1,000
800
BOO
600
600
400
400
200
200
Durioo 1958 the RESEAR H D PARTMENT broadened it di tributi n f ec nomic inf rmation and increas d it
efforts to provid up-t -date e onomic analy e e pecially on
the trend of the recessi n and recovery. ontinuing tudie
on the impact f changing monetary policies were maintained
throughout the year and pecial tudi s on th 1inancing of
small bu ine ~ ere ondu ted. In December publication
of the Te a indu:trial producti n index was a omplished.
The publication
f the Bank were in steadily increasing
demand during 1958. The Business Review Farm and Ranch
Bulletin, and Agricultural New of the Week were supplemented by the publication of An Economic Fact Book. Special
requests for tati tical and economic tudie were in larger
olume than in olb r year .
The PER 0
L D PARTMENT ervic th personnel of the B nk and bran he , which averaged 1.027 officers
and employee in 1958, ompared with 1,014 in 1957. The
increase of 13 re ulted from the fact that additions at the
El Pas and Houston Branche more than offset the declines
at the Head Office and an Antonio Branch. During 195
there were I retirement of offic rs and mploye and five
deaths in active ervic. At the year end 255 officers and
f which
mployee bad 'ervice r cords exceeding 15 yea
108 had more than 25 year of ervic
The UD TING DEPARTME T under the general
upervi. ion of the udit Review
mmittee f the Board of
Directors, fully maintained the audit frequency chedule for
the Head Office and branche a approved by the udit Re iew
Committee of tlli Bank. Tn c mpUance with the legal requirement , th field examining staff f the Board of Governor
conducted an e amination of the Bank: and branches as of
ugust 22 1958.
1958
•
Discounts for member banks .
•
.
...
$
Currency received and counted
•
1,200,000
.
•
. $
•
•
.
•
.
.
.
Collections handled
.
.
.
.
.
.
.
.
$
.
+8%
21,127,512
.
$
+14%
29,305,196
+12%
VOLUME OF TRANSACTIONS
EL PASO BRANCH
u.
$
S. Government interest coupons paid
$
Postal money orders .
.
$ 489,888,032
$ 342,001,298
S. Government securities issued, exchanged, and redeemed .
Purchases and sales of securities for investors.
.
. ... $
$
3,050,700
84,959,200
72,269
24,881,618
$3,273,432,300
Securities of governmental agencies issued, exchanged, and redeemed.
3,156,208
$
Coupons of governmental agencies paid .
Transfers of funds for member banks
u.
+10%
$4,409,757,001
U. S. Government checks
•
+14%
3,277,805
.
Checks returned unpaid
•
+19%
$ 113,038,900
Checks handled
•
+6%
1,235,811
Coin paid out .
•
•
$
Currency paid out
•
-73%
$ 150,190,800
Coin received and counted.
•
1958 from 1957
+19%
+66%
-27%
+2%
+22%
-9%
+18%
T958 from 1957
1958
•
Discounts for member banks.
.
.
.
Currency received and counted.
•
.
Coin received and counted.
•
633,050,000
$
.
.
.
.
.
.
.
.
• .
.
.
.
.
.
.
.
.
. $
.
.
.
.
156,983,350
.
$
Coin paid out
•
$
.
.
Checks handled.
•
.
•
$
-2%
6,182,370
• .
Checks returned unpaid
-7%
198,036,436
•.•.•••••
.
+ 1%
4,647,002
Currency paid out .
•
-39%
$18,867,137,785
.
.
.
• .
Collections handled
.
.
.
.
.
.
.
.
.
$
•
•
•
•
•
•
•
........... $
U. S. Government interest coupons paid .
$
U. S. Government checks
.
Transfers of funds for member banks.
.
.
Securities of governmental agencies issued, exchanged, and redeemed $
.
• • • .
• .
20,046,473
291,349
60,392,816
599,157,684
$
$28,881,901,444
U. S. Government securities issued, exchanged, and redeemed.
Purchases and sales of securities for investors.
.
$
$ 2,427,502,000
16,150,700
861,415,950
+45%
+22%
+61%
-5%
+86%
+25%
+10%
+90%
-10%
HOUSTON BRANCH
$
Postal money orders
°
132,469,749
$
Coupons of governmental agencies paid .
-6%
101,548,995
VOLUME OF TRANSACTIONS
•
-10%
•
Discounts for member banks.
•
.
.
Currency received and counted
•
.
Currency paid out
•
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$ 188,356,000
-56%
.
.
$ 175,618,700
-3%
6,694,851
.
.
.
.
.
.
.
.
.
.
+9%
•
•
•
•
•
•
•
.
Collections handled.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$
.
.
$
. . $
.
.
.
.
.
Tr'ansfers of funds for member banks .
U. S. Government securities issued, exchanged, and redeemed.
Securities of governmental agencies issued, exchanged, and redeemed.
Purchases and sales of securities for investors.
.
.
.
.
.
.
.
.
.
.
$
.
.
16,162,473
260,767
+28%
$6,169,888,691
4,817,000
$ 477,495,600
-2%
+83%
+14%
+95%
+33%
$1,047,854,158
+11%
-2%
53,779,198
$1,294,253,150
+8%
SAN ANTONIO BRANCH
$
Postal money orders .
+1%
84,921,13.4
$
Coupons of governmental agencies paid
+6%
45,018,070
U. S. Government interest coupons paid
U. S. Government checks
+15%
$9,367,950,535
VOLUME OF TRANSACTIONS
•
+ 1%
5,981,470
$
.
.
Checks returned unpaid.
•
.
$ 153,440,600
Checks handled .
•
.
.
Coin paid out.
•
.
1958 from 1957
.............. $
Coin received and counted
•
.
1958
HEAD OFFICE
400 South Akard Street
Dollas, Texas
El PASO BRANCH
301 East Main Street
El Paso, Texas
HOUSTON BRANCH
1701 Son Jacinto Street
Houston, Texas
FEDERAL RESERVE BANK OF OAL AS
SAN ANTONIO BRANCH
210 West Nuevo Street
Son Antonio, Texas
@FedFRASER