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cAl1l1ual CJ:2eport
FEDERAL RESERVE BANK OF DALLAS

1960
To the Member Banks in the
Eleventh Federal Reserve District:
The Statement of Condition and the Earnings and
Expenses of the Federal Reserve Bank of Dallas for the year
1960, with comparative figures for 1959, are shown herein.
A review of economic and financial developments in the
Nation and the District during 1960 is being presented in the
January 1961 Annual Report Issue of the Business Review
of this Bank.
Additional copies of these publications may be obtained
upon request to the Research Department, Federal Reserve
Bank of Dallas, 400 South Akard Street, Dallas 2, Texas.
Sincerely yours,

WATROUS

H. IRONS

President

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

Statemel1t

01

eOl1ditiol1
Dec. 31, 1960

Dec. 31, 1959

ASSETS
. $ 731,394,963.80
32,693,136.17

$ 713,196,271.55
31,036,856.17

764,088,099.97
24,646,600.00
15,265,157.01
814,000.00

744,233,127.72
33,442,100.00
16,519,287.39
8,910,000.00

116,877,000.00
365,108,000.00
502,996,000.00
102,486,000.00

104,007,000.00
419,376,000.00
439,465,000.00
99,137,000.00

1,087,467,000.00

1,061,985,000.00

1,088,281,000.00
825.03
259,467,958.26
13,900,431.99
8,620,432.64

1,070,895,000.00
748.48
294,453,959.80
11,338,918.76
10,599,025.81

2,174,270,504.90

2,181,482,167.96

835,972,900.00

815,894,820.00

971,083,292.56
53,390,099.41
12,412,000.00
3,423,107.94

973,362,268.70
44,230,629.95
18,096,000.00
11,902,615.30

Total deposits.
Deferred availability cash items.
Other liabilities.

1,040,308,499.91
226,450,052.54
1,027,352.45

1,047,591,513.95
249,555,498.97
959,280.32

TOTAL LIABILITIES

2,103,758,804.90

2,114,001,113.24

23,503,900.00
47,007,800.00

22,322,450.00
44,644,900.00
513,704.72

70,511,700.00

67,481,054.72

TOTAL LIABILITIES AND CAPITAL ACCOUNTS $2,174,270,504.90

$2,181,482,167.96

Gold certificate account
Redemption fund for Federal Reserve notes .
Total gold certificate reserves.
Federal Reserve notes of other Banks .
Other cash .
Discounts and advances .
U. S. Government securities
Bills
Certificates
Notes.
Bonds
Total U. S. Government securities.
Total loans and securities .
Due from foreign banks .
Cash items in process of collection .
Bank premises .
Other assets
TOTAL ASSETS
LIABILITIES
Federal Reserve notes in actual circulation.
Deposits
Member bank - reserve accounts .
U. S. Treasurer - general account.
Foreign .
Other.

CAPITAL ACCOUNTS
Capital paid in .
Surplus .
Other capital accounts
TOTAL CAPITAL ACCOUNTS

€arning~ and €xpen~e~
1960

1959

$ 1,210,594.35

$ 1,281,935.17

43,466,853.37

34,008,358.32

55,372.15

16,251.49

44,732,819.87

35,306,544.98

8,041,579.73

7,467,476.47

376,500.00

337,600.00

291,479.00

300,509.00

31,025.00

25,401.00

8,740,583.73

8,130,986.47

960,036.00

1,130,417.00

7,780,547.73

7,000,569.47

36,952,272.14

28,305,975.51

97,523.33

7,509.34

513,704.72

5,002,666.30

686.83

856.80

611,914.88

5,011,032.44

1,713.83

4,408.52

CURRENT EARNINGS
Discounts and advances.
U. S. Government securities.
All other
TOTAL CURRENT EARNINGS
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

.

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) .
Transferred from reserves for contingencies.
All other.
Total additions
Deductions from current net earnings.
Total deductions.
Net additions .
Net earnings before payments to U. S. Treasury .
Dividends paid
Paid U. S. Treasury (interest on F. R. notes) .
Transferred to surplus

1,713.83

4,408.52

610,201.05

5,006,623.92

37,562,473.19

33,312,599.43

1,380,653.36

1,307,562.25

33,818,919.83

30,796,436.54

2,362,900.00

1,208,600.64

FEDERAL RESERVE BANK OF DALLAS
President
First Vice President
*CHARLS E.

WATROUS H. IRONS,
HARRY
HOWARD CARRITHERS,
JAMES

P. E.
J.

A.

SHUFORD,

Vice President and
Ewnomic Adviser
ARTHUR H. LANG, General Auditor
"'GEORGE F. RUDY, General Counsel and
Assistant Secretary of the Board
ROBERT H. BOYKIN, Assistant Counsel
THOMAS R. SULLIVAN, Assistant Vice President
E. H. BERG, Assisttrnt Cashier
Roy E. BOHNE, Assistant Cashier
HERMAN W. KILMAN, Assistant Cashier and
Assistant Secretary of the Board
E. A. THAXTON, JR., Assistant Cashier
JAMES O. RUSSELL, Chief Examiner

Vice President

L. CAUTHEN, Vice President

COLDWELL,

Vice President

L. COOK, Vice President

T. A. HARDIN, Vice President
CARL H. MOORE,

Vice President

Vice President and Acting
Secretary of the Board

G. R. MURFF,

Vice President
Vice President and Cashier

JAMES A. PARKER,
T. W. PLANT,

L. G. PONDROM, Vice President
W. M. PRITCHETT,

Vice President

WALKER,

EL PASO BRANCH
HOWARD CARRITHERS,
FREDRIC W. REED,

Cashier

Vice President in Charge
T. C. ARNOLD, Assistant Cashier

HOUSTON BRANCH
J.

L. COOK, Vice President in Charge

B. J. TRoy, Cashier
W.

C. HARTUNG, Assistant Cashier

RASCO R. STORY,

Assistant Cashier

SAN ANTONIO BRANCH
CARL H. MOORE,

A. E.
ALVIN

E.

RUSSELL,

• On leave of absence.

Assistant Cashier

Vice President in Charge
Cashier

MUNDT,

FREDERICK J. SCHMID,

Assistant Cashier

';])irector~
FEDERAL RESERVE BANK OF DALLAS
O.

(Chairman and Federal Reserve Agent),

President, Hondo Oil & Gas Company,
Roswell, New Mexico
LAMAR FLEMING, JR. (Deputy Chairman), Member, Board of Directors, Anderson, Clayton and Company, Inc.,
Houston, Texas
MORGAN 1. DAVIS, President, Humble Oil & Refining Company, Houston, Texas
JOHN M. GRIFFITH, President, The City National Bank of Taylor, Taylor, Texas
D. A. HULCY, Chairman of the Board, Lone Star Gas Company, Dallas, Texas
1. EDD MCLAUGHLIN, President, Security State Bank & Trust Company, Ralls, Texas
1. B. PERRY, JR., President and General Manager, Perry Brothers, Inc., Lufkin, Texas
ROY RIDDEL, President, First National Bank at Lubbock, Lubbock, Texas
H. B. ZACHRY, President, H. B. Zachry Company, San Antonio, Texas
ROBERT

ANDERSON

EL PASO BRANCH
FLOYD CHILDRESS, Vice President, The First National Bank of Roswell, Roswell, New Mexico
ROGER B. CORBETT, President, New Mexico State University, University Park, New Mexico
DYSART E. HOLCOMB, Director of Research, El Paso Natural Gas Company, El Paso, Texas
JOSEPH F. IRVIN, President, Southwest National Bank of El Paso, El Paso, Texas
WILLIAM R. MATHEWS, Editor and Publisher, "The Arizona Daily Star," Tucson, Arizona
CHARLES B. PERRY, President, First State Bank, Odessa, Texas
DICK ROGERS, President, First National Bank in Alpine, Alpine, Texas

HOUSTON BRANCH
A. E. CUDLIPP, Vice President and Director, Lufkin Foundry & Machine Company, Lufkin, Texas
M. M. GALLOWAY, President, First Capitol Bank, West Columbia, Texas
JOHN E. GRAY, President, The First National Bank of Beaumont, Beaumont, Texas
MAX LEVINE, President, Foley's, Houston, Texas
J. W. McLEAN, President, Texas National Bank of Houston, Houston, Texas
TYRUS R. TIMM, Head, Department of Agricultural Economics and Sociology, A. & M. College of Texas,
College Station, Texas
_ _ _ _ _ _ _ _ ), VACANCY

SAN ANTONIO BRANCH
BURTON DUNN, Chairman of the Executive Committee, Corpus Christi State National Bank, Corpus Christi, Texas
G. C. HAGELSTEIN, President and General Manager, Union Stock Yards, San Antonio, Texas
DONALD D. JAMES, Vice President, The Austin National Bank, Austin, Texas
FORREST M. SMITH, President, National Bank of Commerce of San Antonio, San Antonio, Texas
JOHN R. STOCKTON, Professor of Business Statistics and Director of Bureau of Business Research,
The University of Texas, Austin, Texas
DWIGHT D. TAYLOR, President, Pan American State Bank, Brownsville, Texas
HAROLD VAGTBORG, Chairman of the Board, Southwest Research Center, San Antonio, Texas

FEDERAL ADVISORY COUNCIL MEMBER
I.

F. BETTS, President, The American National Bank of Beaumont, Beaumont, Texas

BUSINESS
REVIEW
JANUARY 1961
Vol. 46, No. 1

ANNUAL REPORT ISSUE

1960 -

ECONOMIC GAINS AND
DISAPPOINTMENTS

By surface indications, 1960 was a year of moderate economic
gains at very high levels, with more people employed than in any
other year in America's history and with gross national product,
industrial production, personal income, and retail sales at new
records, averaging from 2 percent to 6 percent above 1959.
Obscured by these yearly averages were the rising unemployment
totals, the generally declining business pattern of the latter half
of the year, and the rather sharply contrasting developments in
a number of major industries. Indeed, for many businesses and
individuals, 1960 was not a year of fulfillment in terms of the
economic opportunities and advances widely anticipated at the
end of the previous year. Instead, 1960 was a year of disappointment for many--disappointing to the producer, who had expected
full utilization of increasingly efficient capacity in order to achieve
rising profit levels; disappointing to the retailer, who had anticipated substantially higher sales; and, of course, disappointing to
those individuals who became unemployed or underemployed
by reason of production curtailments.

FEDERAL

RESERVE
DALLAS,

BANK
TEX A S

OF

DALLAS

In fact, from an economic point of view, 1960 was
a year of disappointment for the Nation as a whole, as
the international financial problems of 1958 and 1959
were re-emphasiud in the latter part of the past year
and the outflow of gold - stemming mainly from the
deficit in our balance of payments but reinforced by the
widening differential between domestic and foreign
interest rates - became a matter of national concern.
The Nation's disappointment could probably be extended to include its sober realization that prolonged
and arduous efforts will be required to meet the rising
Communist challenge on a broad political, economic,
and financial front.
The Nation's economy showed a peak early in the
year, remained virtually stable for about 5 months
thereafter, and then slid downward by late summer and
into the fall and winter. The causes of the recent decline
in the economy might be labeled by some as a continuation of the cyclical pattern evident in the postwar
economy and by others as a reaction against overly
optimistic expectations of the economy's performance.
Even before the year started, there were many who predicted a 1961 recession and a few who believed that it
would start in 1960. Perhaps the 1960 downturn was a
cyclical development, but even business cycles must
have their generating causes. Thus, one must consider
the important underlying influences which led to an
economy of adjustment in 1960, rather than the economy of abundant prosperity that was envisioned at the
turn of the year.
Most obvious amon.g the group of dominant influences was the changing inventory situation, especially
in the steel industry. In no other industry was there
such a wide fluctuation in inventories as that which
occurred in the steel industry over the past 18 months.
The rapid build-up in steel stocks in anticipation of the
mid-1959 strike was followed by (1) liquidation during
the strike, (2) then, exceptionally rapid accumulation,
and (3) renewed liquidation. Thus, the steel industry
contributed substantially to the instability in the
Nation's economy during the past 2 years, although the
total output of the country's steel mills reached nearly
100 million tons in 1960 for a gain of more than 6 percent over the strike-reduced 1959 level.
Miscalculations as to the supply of and the potential
demand for steel led to a high rate of production,
averaging about 94 percent of capacity in the first
quarter, and inventory accumulation at rates which
proved to be excessive. The lower than expected
demand was a result of many factors, including more

I

BUSINESS REVIEW

1:1961

intensive competItion from aluminum, copper, and
plastics; smaller automobile requirements as compact
cars became more important; slower oil drilling, which
cut back pipe demand; and the realization by steel users
that rapid deliveries could be expected, enabling them
to reduce inventory costs.
100,.-_ _.

STEEL
60

OPERATING
\

40

\

RATE

1959-,

20

o L.-

,

I
\ to..

.

_

I
(Percent of capacity)

I
-'

Inventory changes were not confined to steel but
spread over a wide range of industries, many of them
suffering from the same overoptimism about final
demand. There was a rapid rise in raw materials inventories in early 1960, followed by a period of liquidation.
A more slowly developing, though persistent, increase
occurred in stocks of finished products. Total business
inventories rose to a seasonally adjusted peak of $93.4
billion in June, or $2.9 billion over January and $4.1
billion above June 1959. The sharp fluctuations in
inventories accounted for many of the changes that
occurred in gross national product during 1960.
12

8

RATE OF
BUSINESS
INVENTORY

o

CHANGE
(Billions of dollars)

-4 L.-_ _:-:-::-:;:__--'-----~;:__----'

Some observers stress the inventory change as a
primary influence on the economy: With rising inventory levels not matched by sales increases, orders were
reduced, production had to be curtailed, factory employment declined, prices weakened, profit margins
narrowed, and capital spending plans were cut back.
Though it undoubtedly provides at least a partial explanation for the economy's performance in 1960, this
sequence of events seems far too simple as it does not
explain, for example, why consumers - with steadily
rising personal incomes - were reluctant to make purchases proportionate to their increased buying power.
Thus, inventory changes are both a cause and a result
of basic trends in the economy. Be that as it may,
their impact is most noticeable in the industrial production sector. Total industrial production for 1960, as
measured by the Board of Governors' index, averaged

108 percent of the 1957 base, or 3 percent above the
1959 level. The strongest improvement of the year
occurred in the mining sector, which rose 19 percent as
iron ore and copper mines expanded output to be prepared for what was expected to be a record year for
metal producers. By the end of 1960, however, the
increase in stocks and ready availability of mineral supplies had markedly reduced both types of mining. Crude
oil output for 1960 showed only a minor gain, and the
industry sought to lower burdensome stocks.
Durable goods output rose 3 percent in 1960 but by
the fourth quarter was about 9 percent below the firstquarter level. Moreover, the year's advance should
be discounted by the fact that 1959 contained the sharp
curtailment in durable goods production occasioned by
the steel strike. Fabricated metals and machinery production provided most of the supporting strength in
durables during 1960, though gains in clay, glass, and
lumber and furniture output were also important.
The most uniform improvement of the year occurred
in nondurable goods production, which also averaged
3 percent above the 1959 total. The gains in this sector
reflected steady improvement through midsummer and
only a minor setback during the fall and winter months.
Increases occurred throughout the range of nondurable
goods, but the largest advances were in the paper and
printing and food and beverage categories.
The weakening in industrial production - particularly of durable goods - resulted in increased layoffs
of factory workers during 1960, amounting to more than
500,000, and contributed heavily to the rising unemployment levels. The trend of unemployment, which

totaled over 4 million by the end of 1960, was a composite of the usual frictional unemployment and structural (or semipermanent) unemployment, coupled
with cyclical aggravation. Equally serious was the
apparent lack of sufficient strength in the economy to
absorb the rising number of new entrants into the labor
force. The unemployment pattern featured heavy concentrations, especially, near the steadily declining coal
and textile industries in the East and the steel centers in
the Midwest.
RATE OF
......----',,'. UNEMPLOYMENT

6

5

(Percent of labor force)

4L-

----'

The performance of the consumer contributed not
only to the inventory fluctuations but also to instability
in other sectors of the economy. From a rather slow
start in early 1960 - attributed partly to weather conditions, partly to the seasonally slow period of the year,
and partly to an unexplained reluctance to buy - consumer purchasing accelerated rapidly in the second
quarter but showed a renewed surge of caution in the
summer. The cautious buying attitude was mainly reflected in the slackening in purchases of goods, in contrast with the steady rise in service outlays. This consumer reluctance brought further downward pressures
upon the economy and a build-up of consumer durable
goods inventories. During the fourth quarter, however,
consumer expenditures strengthened, providing a more
optimistic sales picture.
SALES

INCOME

20

420
INCOME

INDUSTRIAL PRODUCTION

....

--------

e

INCOME
19

UNITED STATES

AND

I Seasonally adjusted indulI, 19S7 * 100)
PERCENT

PERCENT

RETAIL
SALES

120

120
NONDURABLES~

.,

1 1 5 1 - - - - - - - - - - + - - - - ,..~,

/.

,----.,

110

0_0

""'.-.......,.

1

TOTAL

115

._-'. e

110

95

o I - - - - - - ' - = " - " - ' - - - f - - - - - - - - - - j 90
85Lw<----;c19"'5"'9----'---------,1"'9"60--------wo-' 85
e· Estimated.
SOURCE: Federal Ru.rYI Bulletin.

PERSONAL

360l.-_ _;-;;19'"5"9--~I.------;c....,..,,--------' 17
1960

( Billions
of dollors)

Despite record personal incomes (at $404 billion)
which were nearly 6 percent over the previous year, the
consumer did not expand his purchases proportionately
and actually reduced purchases of certain durable
goods. Perhaps some of the consumer's caution was
induced by the prospects of downward price adjustments, but even though there were some discounts from
stated prices, the general level of consumer prices
increased about 1.5 percent over 1959. The main
increases were in service and housing costs, though seaBUSINESS REVIEWl
1:1961

sonal advances also developed in food prices. Inasmuch
as the past year was also an election year, at least a portion of the caution on the part of the consumer and the
businessman could be attributed to the uncertainties
generated by the political campaign.
NEW CAR
OUTPUT.
SALES.
AND
STOCKS
( Thousands
of units)

Consumer attitudes toward future purchases showed
a steady lessening of confidence until the third quarter
and, even at that point, exhibited a marked degree of
caution. As expected in such periods, the impact of the
consumer's attitude of caution was reflected mainly in
his purchases of consumer durable items. Sales of new
automobiles, at 6.6 million units (including about
500,000 imports), were substantially above the 1959
level, but such consumption must be viewed in the light
of the greater proportion of compacts in the sales composition and the fact that in late 1959 there was a
shortage of automobiles because of the steel strike.
Thus, even though total sales expanded sharply over
a year ago, this gain was lower than had been anticipated; and with production (totaling 6.7 million units)
exceeding sales of domestic units by 500,000, the industry was plagued with exceptionally large inventories
most of the year.
Purchases of other major consumer durables were
down sharply in the last half of 1960, with anticipated
price concessions, a fairly full consumer inventory, a
decline in residential construction, and general uncertainties apparently responsible for the decline. Thus,
output of appliances, television sets, and radios reached
a peak in May and then decreased for the remainder
of 1960.
Consumer purchases of nondurables rose in the first
half of 1960 to more than 4 percent above a year earlier,
then slipped somewhat in the third quarter, but recovered to the second-quarter level in the final quarter of
the year. As mentioned before, service expenditures
continued to expand at a fairly uniform rate. Nevertheless, total consumer spending increased less in 1960
than it did in 1959, and most of the strength was in the
early part of the year.
A third major influence in the economic pattern of
1960 was the capital expenditures of United States

I

BUSINESS

REVIEW

1: 1961

businesses. Such expenditures were programmed for an
exceptionally rapid rise in the early part of 1960 and, to
some extent, achieved this expected gain; however, with
the development of un utilized capacity, declining orders
and sales, and the intense competition which narrowed
profit margins, industry began to take a new and searching look at its capital spending program. After reaching
a peak in the second quarter and then declining steadily
for the remainder of the year, plant and equipment
expenditures totaled $35.7 billion in 1960 and were
about 10 percent above those of 1959. The largest
gains occurred in manufacturing and railroad outlays,
up 20 percent and 11 percent, respectively. (The only
year-to-year decline among the major categories was in
transportation other than railroads.) Thus, capital
expenditures were an important supporting force in the
economy in the early part of 1960, stimulating both
industrial plant construction and, to a relatively greater
degree, the demand for new machines and other capital
goods. This strength is reflected in the steady output of
business equipment in spite of the marked decline in
farm equipment production.
PLANT AND
EQUIPMENT
EXPENDITURES
(Billions of dollars)

Construction activity exerts an important influence
on the demand for raw materials and, indirectly, on the
demand for consumer durables. Since the total volume
of new construction during 1960 showed only a small
decline from the previous year, construction activity
was not a major stimulant or depressant to the over-all
economy. Gains occurred principally in public construction and in private commercial and industrial
building. Federal Government expenditures for the
interstate highway program were an important sustaining force, and municipal and state expenditures for
educational buildings and highways increased. Industrial plant construction gains were a major feature of
the private sector.
These evidences of strength in construction were
more than offset, however, by the persistent decline in
residential construction. Home building, suffering from
an overhang of unsold new and used houses and from
restraint by relatively high mortgage rates, declined
irregularly throughout 1960, continuing the downward

trend which began in early 1959. Private housing starts,
averaging approximately 1,250,000 units in 1960, were
nearly 17 percent below the year-earlier total. Custom
building, rather than project or speculative construction, was a continued feature of the housing market.
With the increased availability of mortgage funds in the
second quarter of 1960, there was some improvement
in forward contracts, but unenthusiastic consumer demand more or less checked the number of new homes
scheduled for construction.
TOTAL

TEXAS INDUSTRIAL PRODUCTION
(Stolon oily adjusted lndll ... 1947-49-100)

STARTS
(Annual

IOURABLES

250

. -,- -...._---,- ...-.;"""---............--_.-- .......
-*,-.."", """,'
~

~ 250

....

I-

[NONOURABLES

200

150

. ·__···-·..·1- '.~
....' ·.. ·..·.
.-

-........ ..

•

•••

....
--.
.;J1_._.~_

. . . _.-etiiii:

e 200

.

TOTA:J
I 50

..._1. C··......................·
············l·
MINING

10 o

1959

1960

100

rote.

Millions of units 1

1.0 L -

300

300

HOUSING
1.2

PERCENT

PERCENT

----'

Interwoven throughout this pattern of economic
developments were the influences of export-import
relationships of the United States. Total exports expanded to about $19.5 billion in 1960; special factors
included some extraordinarily large exports of jet aircraft and cotton. However, there was still evidence that
domestic firms were running into severe competition for
many of their principal products. The advantages shown
by advancing industrial technology in the United
States supported, and perhaps strengthened, this Nation's hold on orders for machine tools, and foreign
orders for such goods were a major sustaining force for
the domestic industry. These factors - coupled with
strong industrial production gains in Europe, which
spilled over into foreign orders for United States products - brought an optimistic atmosphere to the export
markets of this country. Imports declined to an estimated $15 billion, with decreases especially noticeable in automobiles and steel.
The net impact of these varied forces during 1960
produced an economy struggling to maintain its level
of operation without an inflation stimulus. While this
might seem to be a relatively minor adjustment, the
"liquidation of inflationary psychology" has proved, in
reality, to be one of the most important conditioning
influences for the economy this past year.
Within this context of national economic developments, the Southwest showed some similar but many
dissimilar economic trends, partly because of the smaller
magnitude of upward and downward movements over
the previous 2 years. The Southwest's economic posture
was influenced, and continues to be influenced, by its

1- Estimat.d.
SOURCE: Federal R. . . rv. Bonk of Dallas_

differing structure and greater or lesser emphasis upon
certain individual industries. Industrial production in
this area, as measured by the Texas production index,
remained relatively strong throughout 1960. The gains
in late 1959 and early 1960 were well below those in
the Nation, although the Texas index did not decline as
much in late 1960. Consequently, for the year as a
whole, the 2-percent gain in the Texas index failed to
meet the 3-percent rise in the national index.
Industrial production in the Southwest in 1960, concentrating in the newer electronics industries and the
continually gaining chemical industry, displayed a
5-percent rise in total manufactures, which offset a
3-percent decline in mining. The apparel, paper and
printing, and food industries also showed substantial
growth over 1959. The structure of the Southwest's
industrial complex is an important factor in this manufacturing strength, since primary metals (particularly
steel) are not a major segment of the region's manufacturing capacity. Instead, although some minor declines
continued to occur in defense-related industries and in
lumber and furniture manufacturing, the Southwest's
industrial production in 1960 was featured by a constancy relative to that in the latter part of 1959.
A major part of this steady performance can be attributed to the offsetting trends in the petroleum industry. District crude oil production was reduced 5 percent
from the 1959 level as the industry sought and achieved
a better balance in crude oil stocks. The number of
allowable producing days for Texas was cut from 123
in 1959 to 103 in 1960. This pressure of lower output,
coupled with some crude oil price reductions, brought
BUSINESS REVIEW

1: 1961

I

a 17-percent decline in drilling activity, but wildcat
well completions were off only 8 percent. In contrast,
refining activity advanced 3 percent, with District refineries operating at 80 to 85 percent of capacity most of
the year. The natural gas industry expanded operations
moderately, and copper and nonmetallic mining increased relative to the strike-reduced 1959 levels.
CRUDE OIL PRODUCTION AND REFINING
ELEVENTH FEDERAL RESERVE
(Deily
OVllr0QIS 1
MILLIONS OF BARRELS

DISTRiCT
MILLIONS

OF BARRELS

4.D

4.0

3 . 5 1 - - - - - - - - - \ - - - - - - - - - - 3.5

II-----"---/t--........-----~e 3.0

1---------+---------12.5

1---1-------+---------12.0

1. 5 lNv---'1"'95"'9---L-------,;;19'"6O"--------"~ 1.5
e - Estimated.
SOURCES: U,S, Bureau of Minn.

Americon

Petroleum In,titut•.

Agricultural production in the Southwest showed
some expansion over the high levels of 1959, particularly such major crops as cotton, grain sorghums,
peanuts, rice, and winter wheat. This stimulus was
somewhat dissipated, however, by lower prices for these
products. A continued rise in the numbers of cattle
and sheep and a substantial increase in marketings of
these types of livestock were more than offset by the
sharp 17-percent decline in meat animal prices.
Trends in the construction industry in the Southwest
did not appear to differ substantially from those described for the Nation as a whole. The overhang of
unsold new houses was reportedly large in certain
major markets, but it is doubted whether this was the
primary restraining force on southwestern home builders. Instead, it appears that the Southwest has, for the
first time in the postwar period, caught up to the immediate housing demands of the area. The existence of new
uncertainties regarding the Southwest's growth trend
also may have been an important factor affecting the
home-building industry. With residential awards off 18
percent, the total value of construction contract awards
declined 4 percent. Only a strong and rising industrial
and commercial sector sustained the industry in 1960.

I

BUSINESS REVIEW
1: 1961

These factors, together with the caution exhibited by
consumers and others, were partly reflected in the Southwest's employment picture. However, total nonagricultural employment in the five southwestern states rose
1.3 percent in 1960, mainly because of increases in
finance, service, and government employment. Manufacturing and trade employment advanced modestly.
Unemployment also increased, though, particularly
in areas where petroleum production is a major
local activity.
Personal incomes improved in the Southwest, but
the gain was relatively minor (about 3 percent) and
was sharply below the average yearly gains during the
postwar period. Perhaps this slower income advance, a
rate less than half that shown by the Nation, can explain,
to some extent, the lower rate of consumer purchasing
in the Southwest, especially of automobiles and other
automotive products. Whereas the Nation showed a
marked gain in the number of new automobiles sold in
1960, there was an actual decline in the Southwest.
In fact, retail sales in this region were about 2 percent
below those of 1959. In addition to automotive establishments, the major types of retail outlets showing sales
declines from a year ago were furniture, homefurnishings, and appliance stores and lumber, building materials, hardware, and farm equipment dealers. The
strongest sales gains were at apparel, food, and general
merchandise stores. Eleventh District department store
sales averaged 2 percent below 1959 levels, partly
because of rising competition from new discount houses
and suburban specialty shops.
As in the Nation, though, the over-all performa,nce of
the southwestern economy was at a high plateau, marred
principally by the low level of operations of petroleum
and associated industries and the decline in home
building. Even in the latter part of the year, however,
the changes in general economic activity in the Southwest were, on balance, relatively modest, continuing the
region's record of resisting the downturns in the national
economy.
Financial Developments

Within this economic environment, national financial
developments in 1960 featured the increased availability of loanable funds and a concomitant easing of demands for credit in many sectors of the economy. Thus,
it appears that the total volume of credit extended in
1960 was about one-fourth lower than in 1959, with
business and Federal Government requirements especially reduced.

Of course, the shifting trends and tone of the Nation's
basic economic conditions were of prime importance to
the 1960 financial developments, but there were several
other significant factors, including subsidence of the
inflationary stimulus. Foremost among these major factors was the change in the Nation's fiscal position. As
the Treasury moved from a large deficit for fiscal year
1959 to a small surplus in fiscal year 1960, the change
occasioned a significant dimunition in the demand for
credit and had some marked effects on the credit and
security markets. A second important influence was the
shifting but reduced credit demands of businesses,
consumers, and home buyers, as well as the rising volume of private savings, which augmented the supply of
loanable funds.
Monetary policy was also a major factor in the financial developments of the Nation this past year. The
Federal Reserve System shifted its early-1960 policies
designed to restrain the possible emergence of a speculative boom in favor of steadily easier policies pointed
toward encouraging a stronger economy. As will be
developed later, the policy changes were not only in
direction but also in means of implementation.
The international financial relationships of the United
States were an important influence upon the domestic
financial scene and upon the fiscal and monetary policies formulated to accommodate the changing economic
pattern as the final 6 months brought a sharp acceleration in the gold outflow. The American people interested themselves in the Nation's international financial
position more in the last half of 1960 than at any other
time in the postwar period.
MEMBER BANK RESERVES
UNITED STATES
(Monlht, overOQII 01 daily 119urlll)

MILLIONS OF DOLLARS

MILLIONS OF DOLLARS

+1,200

+1,200

+ I,OOO~----..,...- - - + - - - - - - - - - - - - - j + I , O O O
+ 80d----/-----t--,---------j+800
e

I--/~----__+-~........- - - - _ _ : ,..,.- +600

f--------------+----"""""-" "

"

+400

f-----------+--------;~~'­

----+

o I-

~~

,,;.C-..-_ _---i 0

RE-lS~..~/-'-----I-200
I..-~L
...__ '-'-~-:=-'---------j
-400

_ _ _F_R_EE_ _

,
-400f-------'~\.

'........ ...."..,.."..,.
"".

-60'd---'1"95.->9~----L---,IQ96"'0,--------'-600
,·E,llmoled.
SOURCE: Federal

RII"rve eull.tin.

The impact of the four major factors upon the banking structure of the country is reflected in the change in
bank reserve positions. Total reserves of all member
banks moved downward from $18,878 million in January to $18,104 million in April but then reversed direction, as System policy shifted, and reached more than
$19 billion by the end of the year. Free reserves of member banks (excess reserves less borrowings) moved
from a substantial negative average of about $360 million in January and February to net free reserves of $41
million in June and heavy average free reserves approximating $600 million in early December.
There were even greater differences in the volume of
free reserves of reserve city banks and country banks.
Throughout 1959 and 1960, country banks in the
Nation maintained a free reserve position, although the
magnitude of the free reserves shifted upward or downward largely in accordance with System policy. Of
course, during 1960, the general trend of free reserves
of country banks showed some improvement with the
developing ease in monetary policy. In similar fashion,
though showing a net borrowed reserve level, reserve
city banks experienced a steadily declining net borrowed
reserve position.
Federal funds were available at decreasing rates of
interest as bank reserves expanded. Member bank borrowings from the Federal Reserve banks were progressively reduced in 1960 until, by early December, the
total for the Nation was less than $100 million - contrasted with more than $1 billion in the early part of
the year.
These reserve positions reflected a number of changing developments which affected aggregate banking
statistics. Commercial bank deposits in the Nation improved modestly, as total demand deposits expanded
slightly and time deposits advanced sharply. The expansion in demand deposits stemmed principally from
the gains in deposits of individuals, partnerships, and
corporations since United States Government deposits
declined. Time deposits, reflecting increased personal
incomes and savings, showed a substantial growth at
commercial banks and a moderate growth at mutual
savings banks.
With increased availability of reserves and some improvement in deposits, banks had a greater supply of
loanable funds, and total loans rose about 5 percent in
1960, with most of the advance occurring in the first
half of the year. The loan picture reflected moderate
gains in business, agricultural, and consumer-type loans
BUSINESS REVIEW
1: 1961

I'

DEPOSITS

AT ALL COMMERCIAL BANKS
UNITED

STATES
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

120

120

115

f - - I - - - - - - - - l - - - - - - - - - - - - - j 115

110~-------I----==~~~::::~1I0
70)1----------I---------o.~-70

6 5 1 1 - - - 1 - - - - - - - 1 - - - - - - - - 65
DEPOSITS t

TIME

60·'-w\'--'1"'9<59..-------1..------,-1-;;-96""'0~----'\rw---- 60
e - Esllmaled,

* 511Q5OIIoll1

adjusted

o .... rov .. of dall)' flgur •••

t A, of 1011 Wednesday of month.
SOURCE: Federol R... , ....

Bulletin.

but declines in security and nonbank financial loans.
The ratio of loans to deposits for all banks in the Nation
generally increased in the first half of 1960, reaching
57.1 percent, but declined thereafter to an estimated
end-of-year level of about 55 percent.
These changes in loans, deposits, and reserves allowed considerable leeway for banks to enlarge their
investment portfolios in the latter half of 1960. Total
investments of all commercial banks declined steadily
in the last part of 1959 and the early part of 1960 to
a level of $74.1 billion in June but then expanded to
more than $81 billion by the end of the year. On balance, though, investments were less than 2 percent
above the 1959 level.
LOANS AND INVESTMENTS
ALL COMMERCiAL BANKS IN THE UNITED STATES
BIL LIONS

12 0

BILLIONS OF DOllA RS

OF DOLLARS

I 20

e

~

11 0

10

"D'~

I 10

-LLOANS
I 00

90

90
"',

' .................

[INVESTMENTS
~._~

BO

~----~--~ ... ~

e

-I " ,""".............

70

1960

1959

II ·Eatimol.d.
SOURCE; Federal

Reserve

I BUSINESS

_-,~.."

Bullttill.

REV I EW

1:1961

;,'~

80

70

In the Eleventh District, banking indicators showed
a somewhat different pattern, although total changes
since the first of the year were similar. District member
bank deposits advanced moderately; both demand and
time deposits rose, but the greatest improvement over
1959 occurred in time deposits. Total loans at these
District banks expanded about 4 percent during 1960
and were increasing approximately seasonally in the
final quarter of the year. Commercial and industrial
loans at the District's weekly reporting banks expanded
more rapidly in the second half of 1960 than a year
earlier, with the strongest advances in loans in the "all
other manufacturing" category and loans to transportation concerns. Compared with a year ago, loan
extensions were slower to commodity dealers and manufacturers of petroleum, coal, chemicals and rubber, and
metals and metal products.
The investment pattern of the District's member
banks did not differ greatly from the pattern exhibited
by all member banks in the Nation, in that investments
were liquidated in the first half of 1960 but were increased in the latter half as bank reserve positions eased.
Much of this fluctuation occurred in holdings of Government securities. In contrast, holdings of non-Governments were moderately higher.
The changes in banking aggregates discussed above,
both in the District and in the Nation, reflected many of
the changes occurring elsewhere in the economy, particularly other financial developments. Outside the
banking system, credit demands varied considerably
from 1959. In the corporate market, an increase in new
corporate issues, especially in the second and third
quarters, brought the 1960 total to slightly more than
the 1959 volume. The corporate market was congested
in the latter part of the year, as weakness in the demand
for long-term issues resulted in a build-up of dealer
inventories of new corporate issues. The total volume of
such new issues in 1960 probably reached approximately $7 billion, or moderately above the 1959 total
but well below the record in 1957.
In the municipal market, new issues offered in 1960,
estimated at about $7.1 billion, were less than the 1959
total of $7.7 billion. However, with somewhat lower
interest rates prevailing, the number of municipalities
and states issuing new bonds rose sharply in the third
quarter of 1960; and in the November general election,
voters approved about $3.3 billion of new municipal
issues. The municipal market was affected by the same
general trends influencing the other long-maturity
markets but was stimulated by the necessity of meeting

road bond and utility issues, some of which had been
deferred from previous years.

plicated by the rather large shifts in Treasury debt ownership which were taking place throughout 1960, but
such financings were eased by the shift in monetary
Mortgage loan demand, reflecting the substantially
policy
and the resultant increase in bank reserves. Net
lower level of housing starts, was well below the 1959
changes
in outstanding public debt ownership during
total. Interest rates on mortgage loans, though declinthe first 9 months of 1960 showed that nonfinancial
ing somewhat, remained relatively high compared with
previous years. However, the volume of mortgage credit corporations sold or redeemed more than $3.5 billion
of Government securities while Government and Fedextended failed to increase proportionately with the
eral Reserve holdings increased over $2 billion.
rising availability of mortgage funds. Increased savings
Monetary policy actions during 1960 were indicative
of individuals and corporations provided a sharply expanding pool of funds from which mortgage loans could of the flexibility of the central bank in the face of an
uncertain economic picture and some unusual forces
have been extended in much greater volume.
within the Nation's financial situation. From a policy of
Consumer credit requirements shifted considerably restraint in early 1960, which had been carried over
during 1960, with the rate of instalment credit advance from the previous year, Federal Reserve monetary and
slowing compared with both 1959 and the early part of credit policies were gradually shifted to active ease by
1960. Net extensions of instalment credit averaged the end of 1960. Perhaps the most important features
$203 million in the third quarter of 1960, against a first- of this shift were the timing and the means of implequarter average of $403 million, and apparently were mentation. By the start of the second quarter of the
even lower in the fourth quarter. Much of the change year, the Federal Reserve began to allow market forces
exhibited by these figures reflected not only the decline to ease the position of banks to such an extent that net
in the volume of automobile paper but also the signifi- borrowed reserves declined from over $450 million in
cant decrease in the amount of other consumer goods early January to net free reserves by late May. In large
paper. Net instalment credit extensions for personal measure, this reserve change occurred because of the
loans were strong throughout 1960 but were not equal declining demand for bank credit.
to the year-earlier totals. Instalment credit rose to about
Reserve bank discount rates were lowered from 4
$42.5 billion, and total consumer credit reached
percent to 31;2 percent in early June and stock margin
approximately $56.0 billion, with the year-to-year adrequirements were reduced in late July, as the System
vance of more than $4 billion in total consumer credit
further recognized the lack of buoyancy in the economy
comparing with a $6.5 billion gain in 1959.
and the decline in inflationary expectations. The sum700
mer months brought a further easing in bank reserve
NET
positions through both open market operations and
INSTALMENT
500
changes in regulation D which permitted member banks
CREDIT
to count an increasing amount of their vault cash in
EXTENSIONS
300
meeting reserve requirements on demand deposits and
(Millions of dollors)
reduced central reserve city bank reserve requirements
100'----------l
from 18 percent to 17 1h percent. In mid-August, ReThe Federal Government's credit requirements also serve bank discount rates were lowered from 31;2 perchanged substantially during 1960, as its fiscal position cent to 3 percent, the level prevailing for the rest of the
moved from deficit to surplus. The Treasury's require- year.
In the fourth quarter, rather massive injections of
ments in early 1960 reflected a more than seasonal decline, and the total outstanding public debt decreased. Reserve bank credit were made by further changes in
The usual seasonal increases of the third and fourth regulation D, allowing banks to count all vault cash in
quarters were lower so that, for the calendar year 1960, meeting reserve requirements and reducing central
there was a slight reduction in the net public debt- reserve city bank reserve requirements from 17V2 percontrasted with a rise of $8 billion during 1959. The cent to 16V2 percent. These efforts by the System to
use of advance refunding techniques to extend the av- increase the availability of bank reserves and the supply
erage maturity of the public debt was partially success- of loanable funds were designed to recognize the develful, but the total volume extended did not exceed $8 oping decline in the domestic economy, to meet seabillion. The Treasury's actions in the market were com- sonal requirements of businesses and consumers in the
BUSINESS REVIEW
1:1961

I

fourth quarter, and to offset the reserve effects of the
enlarged outflow of gold.
International considerations were an important factor in both the financial and the economic developments
of 1960. The net trade surplus, improving substantially
to reach nearly $5 billion, was more than offset by the
continued outflow of funds to meet military and
economic aid commitments, to support United States
troops and their dependents stationed abroad, and to
meet the continuing capital outflow occasioned by rising plant investment in foreign nations by United
States firms.
Important in the latter half of 1960 were the shortterm capital outflows attracted by the differential in
interest rates of the United States and foreign nations.
Short-term government obligations of foreign nations
brought a net advantage of more than 1 percent to the
investor; and even some longer-term obligations, particularly German issues, were of interest to many investors. Thus, a growing volume of dollar balances was
moved out of United States Treasury obligations and
deposits in United States banks to be invested abroad.
This process occasioned a further increase in foreign
government or central bank dollar balances, part of
which was converted to gold. The gold outflow, which
amounted to only $134 million in the first half of 1960,
expanded sharply so that, for the year as a whole, more
than $1.9 billion was transferred to foreign ownership.
The net effect on the monetary gold stock was somewhat less since the International Monetary Fund sold
$300 million in gold to the Treasury in early December,
but the stock was below $18 billion at the end of 1960.
All of the factors and considerations mentioned
above were brought to bear upon the money and security markets of the United States during 1960. The
changes which occurred in those markets reflected, of
course, not only the intensity and dominance of the
individual factors at any particular time but also the
differing dealer and investor interpretations of these
basic market forces. In addition, dealer holdings of
Government securities increased rather sharply in early
August and remained high for most of the rest of the
year.
Average monthly yields on 91-day Treasury bills
declined from a January peak of 4.35 percent to an
early-December level of about 2.27 percent, average
yields on intermediates were reduced from 4.87 percent
to around 3.49 percent, and yields on long-term Government securities fell from 4.37 percent to about 3.87

I

BUSINESS REVIEW

110

1:1961

MONEY RATES
PERCENT

PER

PERCENT

ANNUM

PER

ANNUM

5.0

5.0

4.5~--'7";;;;;;;;;;;/~~?""""=='--~

3.5 f - - - -

3.01-- •
2.5

_-+-......

.;.J - - - - - - - t - - - -

L.......J.------+---F. R. DISCOUNT RATE
(New

3.5

L..._-\3.0
-~--I2.5

.....

York)

2.0Lw---""'19=5~9---l----.lo;96,-;;O~---.JI/IN'2 .0
e· Eslimol.d.

percent. By the end of August, most of the 1960 decline
in yields on United States Government securities had
already occurred.
Summary

Economic and financial developments in the Nation
and the District during 1960 were hardly those which
many people had anticipated in the early part of the
year, but, on balance, the economy did make some further advances. The economic adjustment developing at
midyear brought an unfavorable atmosphere to the
domestic scene, and international balance-of-payments
problems cast a cloud over the Nation's financial
position.
As the year closed, the dominant forces in the
domestic economy were exerting more downward than
upward pressures, though the margin of difference was
not substantial. Total business sales, orders, and inventories had been sliding irregularly downward for many
months; home building was reduced; and unemployment increases proved to be much larger than seasonally
expected. Moreover, the decline in private capital expenditures began to reflect industry's reappraisal of
its substantial unutilized capacity and the marked
pressures on profit margins. On the other hand, Government spending was increasing, consumer buying
improved somewhat, and gains in personal income and
the high level of total employment seemed to provide
an undercurrent of strength. Thus, economic forecasters face a familiar problem of timing, attempting
to measure the developing power of the underlying
forces against the further need for adjustments to balance inventory, sales, and employment relationships.

BUSINESS

REVIEW

BUSINESS, AGRICULTURAL, AND FINANCIAL CONDITIONS

Eleventh District department
store sales in November rose
less than seasonally over
October and were below a year
ago. Department store inventories at the end of November were slightly under
the October level and were about the same as a
year earlier. Total new car registrations in the
District's four major centers during November were
higher than in either the previous month or the same
month in 1959.

member banks continued to grow, and loans rose
substantially. Total investments were reduced, but
holdings of Government bonds maturing after 5 years
advanced noticeably.

Crude oil production in the District increased
moderately during November and early December.
Crude runs to refinery stills also advanced, but at a
somewhat slower rate. As a result, crude oil stocks of
District origin also rose slightly. District drilling
activity remained well below a year ago, although
the number of rotary rigs actively engaged rose
significantly.

The seasonally adjusted index of Texas industrial
production declined to 171 during November but
was 2 points above November 1959. Nonfarm employment in the District states held virtually steady in
November and was slightly above a year earlier.
Unemployment in Texas during the month increased
to 5.1 percent of the nonfarm labor force.

Changes in reserve regulations highlighted recent
financial developments in the District. During November and early December, both reserve city banks
and country banks enjoyed the highest free reserve
level of the year. In the 4 weeks ended December 14,
time deposits of the District's weekly reporting

Eleventh District department
store sales during the December
Christmas buying season failed to
reach the 1959 record, though
the margin of difference was
small. Sales in November had continued below the
year-earlier level, for the seventh consecutive month,
with a 5-percent decrease, despite the fact that there
was an additional trading day in November 1960. On
a month-to-month basis, November sales rose 4 percent, or less than seasonally, reflecting the effect of
cold, wet weather over most of the District in the latter
part of November, when sales usually begin their sharp
rise toward the pre-Christmas peak. The seasonally
adjusted sales index declined to 163 percent of the

The total value of construction contracts awarded
in the District states during October was 9 percent
below September and 11 percent lower than a year
ago. Residential awards declined in October and
remained under a year earlier, but "all other" awards
increased.

District agricultural activity was at a low ebb during
December as a result of cold, wet weather. Production of Texas citrus fruits this season is expected to be
sharply above a year earlier. Pasture and livestock
conditions remain favorable, although snow and rain
have curtailed grazing and low temperatures have
caused moderate livestock shrinkage.
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
Eleventh Federal Reserve District
(1947-49

=

lOOt

SALES (Daily average)
Date

Una djusted

Seasonally
adjusted

1959, November... . .
1960, September. • . •
Octaber. • • . . .
November.... .

208
159
176
190

179r
166
172
163

rp -

STOCKS (End af month)
Unadjusted

Seasonally
adjusted

207
201
211
207p

188
189
192
189p

Revised.
Preliminary.

1947-49 average from 172 in October and 179 in
November 1959. Cumulative sales for the first 11
months of 1960 were 2 percent below sales in the comparable 1959 period.
BUSINESS REVIEW
1: 1961

11

I
I

DEPARTMENT STORE SALES

CITRUS FRUIT PRODUCTION

(Percentage change in retail value)

(In thousands of boxes)

November 1960 from

State and crap
October
1960

Area

Totcl Eleventh District ••••••.••.•••••••...•
Corpus Christi ••••..•...•.•••.•..•••.••..•
Dallas •...............•....•..•••••••..•
EI Paso .•.••••.•••••••••••••••••••••••••
Fort Worth ••.•••••.•••••••••••••••.•••••
HOu:iton ••••••••••••••••••••••••••••••••

San Antonio ...•.••..••.•.••..•••••••••••
Shreveport, La.••••.•.•....••••..••••••••
Waco ...•.•••••• o • • • • • • • • • • • • • • • • • • • • • •
Other cities ••••••••••••••••••••••••••••••

4
-5
6
3
11

-1
2
12
16

5

November
1959

-5
-12
-2
-10
-6

-4
-7
-7
3

-4

-6

o

-12

-5

o

-4
-4
-6

Total new car registrations in the District's four most
populous areas in November rose 4 percent over October and were 19 percent greater than in November 1959,
when new-model production was being slowed by the
steel strike. Both month-to-month and year-to-year
increases were recorded in Dallas, Fort Worth, and
Houston, but November registrations in San Antonio
were lower than in either October 1960 or November
1959. Cumulative registrations in the four areas
through November were 3 percent below those in the
first 11 months of 1959.
Wet, cold weather generally
blanketed most of the District
during a major part of December, sharply curtailing field work
and necessitating supplemental
feeding of livestock. The over-all winter soil moisture
conditions in the District are the best in many years;
in some areas, minor flooding has occurred.
Snow over much of the High Plains and Trans-Pecos
areas and in New Mexico delayed stripping of the few

1: 1961

1949-58

Oranges..... . .. . ... . . . . ..
Grapefruil. . . . . . . . . . . . . . . .

1,150
2,570

1,500
3,220

1,062
2,603

275

260

178

3,000
6,700

2,700
5,200

1,566
3,090

LOUISIANA

Oranges...... .•. . .•.. . ...
TEXAS

Oranges... . . . . . . . . . . • . . . .
Gra pefruil. . . • . . . . . . . . . . . .

SOURCE: United States Department of Agriculture.

1

Preliminary data indicate that department store
inventories in the District declined slightly in November and were approximately the same as at the end of
November 1959. New orders placed for merchandise
by the stores during November were slightly higher than
in the preceding month but were 12 percent below a
year ago.

REV I EW

Average

1959

ARIZONA

-2

Women's and misses' dresses, with a 2-percent increase, were one of the few types of goods which
recorded a year-to-year sales gain at the District department stores during November. Sales in most of the
other major departments, both soft goods and consumer durables, registered declines from November
1959. For example, sales of women's and misses' accessories were 4 percent lower, and sales of men's clothing
were down 11 percent.

I BUSINESS

Indicated
1960

remaining fields of cotton, and inclement weather hampered completion of peanut harvesting in the Cross
Timbers, Edwards Plateau, and south Texas. Snow in
the Plains area of the District provided adequate soil
moisture for winter wheat, and oats in most sections
are in good condition.
A light mid-December frost - which extended as
far south as the Lower Valley of Texas - damaged
some plantings of peppers, eggplants, and tomatoes in
the Winter Garden, Eagle Pass, and Laredo areas. The
movement of carrots, spinach, cabbage, and cauliflower
is increasing in the Winter Garden section.
Citrus harvesting is making fairly good progress,
despite interruptions from rains. The size of Texas
citrus fruits was relatively small early in the season, but
rains in October and November resulted in steady improvement in the size of the fruit. Following the severe
1951 freeze, total citrus output in Texas declined to
about 500,000 boxes, contrasted with over 28 million
boxes a few years earlier. Subsequently, production has
gradually increased as groves have been replanted and
trees have reached bearing age. The indicated 1960
output of both oranges and grapefruit in Texas is larger
than the 1959 production and the 1949-58 average,
but in Arizona the estimated outturns of both types of
fruit this season are lower than in 1959. The Texas
grapefruit crop is forecast at 6.7 million boxes, or
almost 29 percent greater than a year earlier. Texas is
the only major grapefruit-producing state whose output is expected to be larger than in 1959. In the Nation,
grapefruit production is indicated at only 1 percent
greater than in 1959 and 2 percent below average.
Livestock in the District have remained in relatively
good condition, despite cold weather and wet fields and
pastures. At times, livestock have had to be removed
from small-grain pastures in many areas because of
boggy fields; consequently, feeding activity has been
stepped up significantly.

During the 4 weeks ended
December 14, increased reserves
it; INA~N
"\." and reduced investments pro\~
v
vided the funds for a substantial
\~~,,,.•.•, .~. ,,,~~.A,t,.,, .•~,.,...,'~./ expansion
in loans by the weekly
reporting member banks of the Eleventh Federal Reserve District. Time deposits continued to grow, and
demand deposits rose. The ratio of gross loans to total
deposits was virtually unchanged, while cash accounts
and total assets increased.
.•..,.,......."''''''''~'\

CONDITION STATISTICS OF WEEKLY REPORTING
MEMBER BANKS IN LEADING CITIES

l~"'...... "'''''···~}\

Gross loans (excluding interbank loans) expanded
almost $49.0 million in the 4-week period, largely as
a result of a $38.1 million expansion in loans for purchasing or carrying securities. Commercial and industrial loans grew only $1.3 million. In the comparable
period of 1959, gross loans increased $29.9 million.
Government security holdings in the recent period fell
$23.8 million, but non-Government holdings advanced
$16.5 million. In the 1959 period, total investments
rose $49.3 million, as both Government and nonGovernment security holdings expanded. Since midyear, the District weekly reporting member banks have
added approximately $65.9 million to their holdings
of Government bonds maturing after 5 years; and
although they reduced their holdings of Treasury bills
and certificates by $46.6 million between January 20
and June 15, their holdings of these securities had
almost returned to the January level by December 14.
Total deposits grew $61.7 million during the 4 weeks
ended December 14, as demand deposits advanced
$29.7 million and time deposits rose $32.0 million.
Demand deposits of individuals, partnerships, and corporations and of domestic banks were substantially
higher, but United States Government deposits declined
markedly. The expansion in time deposits was largely
accounted for by growth in the deposits of individuals,
partnerships, and corporations. Time deposits have
advanced steadily since June 15 and by December 14
had increased almost $189.9 million to reach approximately $1.5 billion.
CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS
(In thousands of dollars)
Dec. 14.
Item

Total gold certificate reserves ••.......•.•...
Discounts for member banks ••.•••..........

Other discounts and advances •.•.•.•...•...
U. S. Government securities •.•..............
Total earning assets •••••.••..•.•••••......

Member bank reserve deposits
.
Federal Reserve notes in actual circulation .•...

1960
669.173
400
348
1.102.309
1.103.057
898.090
837.055

Nov. 16,
1960

Dec. 16,
1959

711.509
6.100
1.276
1.112.495
1.119.871
970.534
822.526

711.271
24.305
260
1.083.313
1.107.878
959.739
821.355

Eleventh Federal

Reserve District

(In thousands of dollars)

Dec. 14,
1960

Nov. 16,

Dec. 16,

1960

1959

Commercial and industrial loans •...•....•..•• 1.551.816
Agricultural loons ••.•.....•......•.......••
32.287
Loans to brokers and dealers for purchasing
or carrying:
29,145
U. S. Government securities ••......•.•••.•.
Other securities •.•••......•.•...........
23.407
Other loans for purchasing or carrying:
U. S. Government securities •..•......••••..
8.665
Other securities •••....................••
185.046
loans to nonbank financial institutions:
Sales finance, personal finance, etc..•.•...••
94.814
Savings banks, mtge. cos., ins. cos., etc..••...
132.039
185
Loons to foreign banks ••...................
loons to domestic commercial bonks ••.•.......
49.158
212.745
Real-estate loons ••.•...................•..
758.396
All other loons .....................•......

1.550.473
33.336

1.537.854
31.825

274
21.284

5.298
12.439

6.295
180.272

8.942
183.645

95.309
135.516
287
92.510
208.230
748.273

142.085
113.011
440
52.215
207.211
724.252

Gross loons .........•.•........•........ 3.077.703
54.338
less reserves and unallocated charge-offs ••

3.072.059
54.775

3.019.217
49.774

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

3.017.284

Item

ASSETS

--3.023.365
---

2.969.443

---

82.197
32.987

116.377
32,557

147.696
744,617
359.624
368.946
--Total investments .......•.••............. 1.736.067

117.621
783.150
341.263
352,436
1.743.404

Cash items in process of collection •...........
Balances with banks in the United States ...•...
Balances with bonks in foreign countries ••.....
Currency and coin ....•.•.•••.•............
Reserves with Federal Reserve Bank .•••.......
Other assets ••.•.•...........•.••..•......

534.172
617.624
2.023
57.897
529.479
214.871

588.618
499.599
1.923
52.073
572.758
208.863

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

6.715,498

6,684,522

6,501,181

Demand deposits
Individuals, partnerships, and corporations ..•• 3.006.806
United States Government .•••............
60.795
218.001
States and political subdivisions ..•.........
Banks in the United States ..•...•.•........ 1.171.302
15.751
Banks in foreign countries ...........•.....
60.004
Certified and officers' checks, etc..•.•..•..•

2.927.797
157.827
213.257
1.126,455
17.399
60.212

3.010.552
127.834
237.064
1.049.768
16.100
74.085

Treasury bills .........••••................
Treasury certificates of indebtedness ..•••••.•.
Treasury notes and U. S. Government bonds,
including guaranteed obligations, maturing:
Within 1 year •..........•......••••••..
Alter 1 but within 5 years .•••..........••
After 5 years ..•.......•.•••............
Other securities ••.•...•..•...........•....

---

58.852
39.568

99.168
776.550
320.853
361.152
1.656.143

--538.627
515.669
1.953
52.600
546.917
219.829

LIABILITIES AND CAPITAL ACCOUNTS

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

--4.532.659
---

4.502.947

4.515.403

Time deposits
Individuals, partnerships, and corporations •.•.
United States Government ••••........•...
Postal savings •.........................
States and political subdivisions •...........
Bonks in the U. S. and foreign countries •.....

1.202.504
12.513
394
237.447
10.074

1.181.983
9.913
394
228.295
10.355
1.430.940

1.056.733
6.255
421
158.797
6.612
--1.228.818

Total deposits ..........•...•.•.•... 5,995.591
17.559
Bills payable, rediscounts, etc........•.•...••
129.479
All other liabilities .........................
572.869
Capital accounts •..•••....................

5.933.887
45.934
134.781
569.920

5.744.221
93.253
123.006
540.701

TOTAL LIABILITIES AND CAPITAL ACCOUNTS 6,715.498

6,684,522

Total time deposits ...................•

--1.462.932
-----

--MQ!.181

Total reserves of all District member banks increased
markedly during November and early December as a
result of the net effect of changes in regulation D allowing all vault cash to be counted as legal reserves but
also raising the legal reserve requirements for country
banks by 1 percent. Since country banks tend to hold
large amounts of cash, their reserves rose more rapidly
than those of reserve city banks. However, at both types
of banks, excess reserves advanced, borrowings from
BUSINESS REVIEW

1: 1961

I

RESERVE POSITIONS OF MEMBER BANKS
Eleventh Federal Reserve District
(Averages of daily figures. In thousands of dollars)

Item

5 weeks ended

4 weeks ended

Month of

Dec. 7, 1960

Nov. 2,1960

Nov. 1959

576,095
554,015
22,080
565,342
10,753

565,590
555,455
10,135
557,902
7,688

552,632

RESERVE CITY 8ANKS

Totol reserves held •••...•...••
With Federal Reserve Bonk
.
Cash allowed as reserves
.
Required reserves •••••••••••..

Excess reserves .•.............
Borrowings •.•••.......•.••..•
Free reserves •.••••....••••...

o

72

10,753

7,616

485,800
430,550
55,250
415,199
70,601
6,123
64,478

459,514
429,992
29,522
396,573
62,941
9,762
53,179

1,061,895
984,565
77,330
980,541
81,354
6,123
75,231

1,025,104
985,447
39,657
954,475
70,629
9,834
60,795

546,512
6,120
21,254
-15,134

COUNTRY 8ANKS

Total reserves held .••....•••.•
With Federal Reserve Bank.•.•

Cosh allowed as reserves ••...
Required reserves •••••••.•.•..

Excess reserves .•.•.•.........
Borrowings •...•....•....••..•
Free reserves •.•••••.•.•••••••

461,903
414,061
47,842
9,976
37,866

All MEM8ER 8ANKS

Tota I reserves hel d ••••.•.•••..
With Federal Reserve Bank.•.•

Cash allowed as reserves ....•
Required reserves •••....•.••..
Excess reserves •..•...••••....
Borrowings •..........••.•.•..
Free reserves •................

1,014,535
960,573
53,962
31,230
22,732

NOTE. - Regulations permitting member banks to count part of their vault cosh in
meeting reserve requirements became effective in December 1959; effective November
24, 1960, all vault cash can be counted in meeting reserve requirements. On January
1, 1960, the reserve computation period for country member banks was changed to a
biweekly basis. Therefore, monthly data comparable to year-earlier material are not
available.

the Reserve bank declined, and, thus, free reserves
reached record levels.
Total earning assets of the Federal Reserve Bank of
Dallas declined $16.8 million between November 16
and December 14, as discounts and advances and holdings of United States Government securities were
reduced. Federal Reserve notes in circulation rose
$14.5 million during the period to a level $15.7 million
above a year earlier. Gold certificate reserves decreased
$42.3 million in the 4 weeks ended December 14 and
were $42.1 million less than a year ago.
NEW PAR BANKS
The Seminary State Bank, Fort Worth, Texas, an
insured nonmember bank located in the territory served
by the Head Office of the Federal Reserve Bank of
Dal/as, was added to the Par list on its opening date,
December 1, 1960. The officers are: Walter Wal/erich,
President; Bil/ G. AI/en, Executive Vice President; and
David T. Joyner, Cashier.
The First Bank and Trust of Richardson, Richardson,
Texas, an insured nonmember bank located in the territory served by the Head Office of the Federal Reserve
Bank of Dal/as, was added to the Par list on its opening
date, December 15, 1960. The officers are: Charles T.
Boyle, Chairman of the Board; Charles W. Murphy,
President; Eugene Geyer, Executive Vice President; and
Maurice A. Tharp, Jr., Vice President and Cashier.

I

BUSINESS REVIEW
1:1961

A slightly less than seasonal
advance in total demand for the
four major petroleum products
during late November and early
December concealed significant
increases in the demand for kerosene and fuel oils during the first 2 weeks in December. The market for
heating oils was generally weak during November
because of abnormally warm weather, and discounts
from listed prices occurred; however, with the advent
of cooler weather in early December, discounts were
eliminated and fuel oil prices firmed. Total new supplies
of refined products, measured by crude oil runs to refinery stills and refined product imports, advanced at a
somewhat slower rate than is expected for this time
of year. Refineries throughout the Nation operated at
80 percent of capacity in mid-December. As the increase in demand exceeded the advance in new supplies,
total inventories of the four major refined products
declined.
District crude oil production during the first half of
December, averaging 2,959,000 barrels daily, advanced about 5 percent, primarily because of the higher
Texas allowable; crude oil production in the Nation
also increased. Imports of crude oil, however, decreased
contraseasonally, and during the week ended December
16, crude oil imports east of California declined to
the lowest level in the past 12 months. Crude oil stocks
of District and national origin rose slightly but remained
well below a year earlier.
Total drilling activity during November and early
December in the District, as well as in the Nation,
continued well below the comparable 1959 period,
although the average number of rotary rigs active in the
District increased significantly. Both total well completions and total footage drilled declined.
January production of crude oil in the District should
rise somewhat because of a slight increase in the southeastern New Mexico allowable; however, all other
crude oil-producing states in the District have announced that January production schedules will be at
the December level. Elsewhere in the Nation, output
should increase slightly more than in the District.
The total value of construction
contracts awarded in the five
southwestern states in October
amounted to $280 million, which
is 9 percent lower than in September and 11 percent below October 1959. Residen-

INDUSTRIAL PRODUCTION
(Seasonally adjusted indexes, 1947·49

Area and type of index

TEXAS
Total industrial production ••••
Total manufactures •••••••••
Durable manufactures •••••••
No,durable manufactures ••••

Mining •••••••••••••••••••
UNITED STATES
Total industrial production .••.
Total manufactures •••••••••
Durable manufactures •••••••
Nondurable manufactures ••••

Mining ••••••••••••
Utilities ..... o . o • • • • •

o ••• o ...
o .......

NONAGRICULTURAL EMPLOYMENT

= 100)

Five Southwestern States 1

November
1960p

October
1960

September
1960

November

171
215
250
199
128

173
217
253
201
130

174r
216
252
200
132r

169
209r
241 r
192
131

159
157
161
158
126
295

162
160
165
159
126
295

162
161
166
159r
127r
295r

15'r
154
156r
157
126
274r

October
1960

November

1959r

Ocl.
1960

1959

3,660,100
241,800
307,000

4,443,200
780,300
3,662,900
241,100
313,400

4,392,300
784,600
3,607,700
248,700
303,200

-0.1
-.1
-.1
.3
-2.1

1.1
-.6
1.5
-2.8
1.3

public utilities ••.••••.
402,700
Trade ••••••••
1,100,800
201,400
Finance ••••••..•••••••
Service •••••••••••.••.
550,900
855,500
Government•••••••••••

404,300
1,099,300
201,800
550,400
852,600

407,600
1,092,300
193,400
535,300
827,200

_.4
.1
-.2
.1
.3

-1.2
.8
4.1
2.9
3.4

November

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

Percent change
Nov. 1960 from

Number of persons

1959
Type of employment

1960e

Nov.

Total nonagricultural

wage and salary workers •• 4,440,000
Manufacturing •••••••••••
779,900
Nonmanufacturing ••••••••
Mining •••••••••••••••

Construction •..•..•••••
Transportation and
0

1

•••••••

Arizona, louisiana, New Mexico, Oklahoma, and Texas.

a -

Estimated.

r -

Revised.

SOURCES: State employment agencies.

tial awards decreased one-fourth during October, while
"all other" awards rose slightly above September.
Construction contracts awarded in the District states
during the first 10 months of 1960 totaled almost $3.3
billion, or 4 percent below the comparable 1959 period.
The decline occurred wholly in the residential sector,
which was 18 percent below January-October 1959;
limiting the decline in the total value of southwestern
contract awards was the 8-percent gain in the "all
other" sector, which includes heavy engineering and
nonresidential building.
The seasonally adjusted index of Texas industrial
production during November declined to 171 from the
October level of 173 but was 2 points above November
1959. Total manufacturing decreased from October as
a result of slight declines in both nondurable and durable goods production but was 6 points above a year
earlier. In the nondurables industries, decreases in the
output of petroleum products, textiles, and paper offset
advances in the output of food, apparel, printing, and
chemical products. For the durable goods industries,

Federal Reserve Bonk of Dallas.

declines in the manufacture of transportation equipment, electrical machinery, fabricated metal products,
and furniture counterbalanced substantial gains in the
output of machinery and primary metals. Mining decreased because of a 2-percent reduction in crude
petroleum output.
Nonfarm employment in the District states held virtually steady at 4,440,000 during November as seasonal increases in government, services, and trade more
than offset declines in manufacturing, construction,
finance, and transportation and public utilities. Compared with a year earlier, there were decreases in
manufacturing, mining, and transportation and public
utilities employment, while all other sectors showed
increases. Unemployment in Texas rose moderately in
November to reach 184,300, or 5.1 percent of the
nonfarm labor force. Average weekly insured unemployment benefit requests during November set an alltime record for the month and were above both October
and a year ago.

ELEVENTH FEDERAL RESERVE DISTRICT
~ 001101 Head Office Territory
HOUlton Branch Territory
1:;::::;:,:1 Son Antonio Bronch Territory

mnn

~ EI POlO Branch Territory

BUSINESS REVIEW

1:1961

I

CONDITION STATISTICS Of ALL MEMBER BANKS

BANK OEBITS, END-Of-MONTH DEPOSITS
AND ANNUAL RATE Of TURNOVER Of DEPOSITS

Eleventh federal Reserve Distrid

(Dollar amounts in thousands)'

(In millions of dollars)

Debits to demand

deposit accounts l
Percent
change from

November

1960

Area

Oct.
1960 1959
Nov.

Annual rate of turnover

Nov. 30,
1960

Oct. Nov.
1960 1960 1959
Nov.

224,725

6

2

130,292

21.1

20.6

18.6

84,740
332,527

4
4

2
10

52,458
184,085

19.3
21.8

19.2
21.4

18.7
18.7

6

31,972

17.0

17.3

16.1

8
-3
1
10
8
-8
7
-4
1
-5
4
-2
-4
4
-2
-1
7
2
3
-6

64,246
117,898
142,986
107,196
107,621
19,662
1,156,563
169,727
383,066
58,403
1,325,945
21,542
115,928
45,135
47,646
377,083
17,133
57,072
70,962
96,822

19.0
23.0
17.4
19.0
20.9
9.7
29.6
25.1
22.9
17.4
23.2
14.5
26.5
16.6
13.0
18.2
15.5
17.3
17.3
14.0

18.1
23.4
17.6
19.4
20.2
12.1
27.8
24.2
24.0
19.0
23.5
14.9
23.2
18.8
14.3
18.7
16.9
17.2
19.0
13.9

18.1
23.6
16.1
16.9
19.1
10.3
28.2
26.3
23.3
17.4
23.0
14.3
26.5
16.2
13.8
18.6
15.6
16.4
17.2
13.7

4

$4,901,443

23.2

22.9

22.6

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

Oct. 26,
1960

Nov. 25,
1959

loans and discounts ••....•...•..••.........
United States Government obligations ..•• •.••.
Other securities ••..............•.. .•••.•••
Reserves with Federal Reserve Bonk ...••..•.•
Cash in vaulte ••...........••....••.•••.• .
Balances with bonks in the United States ....•..
Balances with bonks in foreign countries e •.••..
Cash items in process of collection ••......•...
Other assets e •••.•......•••.•.••.••.... .•.

4,922
2,540
852
882
157
1,297
2
579
293

4,953
2,553
850
959
156
1,057
2
522
296

4,755
2,535
850
975
141
1,063
3
542
319

TOTAL ASSETse .••••••••............•..

11,524

11,348

11,183

Demand deposits of banks ..••••••••..•.. .•.
Other demand deposits ••••..••••••.••.••..•
Time deposits ••... .•...........•.••.•.•.••

1,262
6,638
2,451

1,159
6,628
2,386

1,167
6,719
2,096

Total deposits ••••..•.•.••••••..•.••••••
Borrowings e • .............•.••..•.••••••••
Other liabilities e •.• •••••.•.•...•....•.•.•.
Total capital aceounts e .....•. •••••...•.....

10,351
24
170
979

10,173
48
160
967

9,982
122
134
945

11,348

11,183

Item

ARIZONA
Tucson ••.•...•......

Nov. 30,
1960

Demand deposits l

ASSETS

NEW MEXICO
45,155

Roswell ••..•••.•.•.•

TEXAS
105,317
5
225,255
0
205,903
0
162,704
3
189,095
5
15,981 -18
2,863,600
6
354,966
6
737,730
-2
86,241
-9
2,510,670
1
26,021
-2
244,347
18
60,906
-9
51,191
-8
570,544
-2
22,246
-8
83,720
1
102,095
-7
113,084
1

Abilene .............
Amarillo ............

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

Corpus Christi ...•....

Corsicana ...........
Dallas .•••.....•..••
EI Paso ..........•.•

fort Worth ..........
Galveston ...........
Houston ••••..••••••

laredo .............

Lubbock •...........
Port Arthur •....•.•.•
San Angelo .........
San Antonio .........
Texarkana z •••.•...•
Tyler .•..•••••.•....
Waco •..•.•••....••
Wichita Falls •....•..

$9,418,763

Total-24 cities ••..••••

LIABILITIES AND CAPITAL ACCOUNTS

TOTAL lIABllITl~S AND CAPITAL
ACCOUNTSe ••••••.•..•.••.•••••••••.
e -

Estimated.

VALUE Of CONSTRUCTION CONTRACTS AWARDED
(In thousands of dollars)

January-October
1 Deposits of individuals, partnerships, and corporations and of states and political
subdivisions.
2 These figures include only two banks in Texarkana, Texas. Total debits for all banks
in Texarkana, Texas-Arkansas, including one bank located in the Eighth District,

omounted to $51,583,000 for the month of November 1960.

Area and type

October

September

October

1960p

1960

1959

FIVE SOUTHWESTERN
STATES' .•.••••....

280,338
103,327
177,011
.
. 3,319,145
Residential. .....•.• 1,390,402
All other
. 1,928,743
Residential. ..•..•. .

GROSS DEMAND AND TIME DEPOSITS Of MEMBER BANKS
Eleventh federal Reserve District
(Averages of daily figures. In millions of dollars)

All other
UNITEEl STATES

1

306,322
136,495
169,827
3,087,150
1,272,271
1,814,879

1960

1959

313,069
3,256,857 3,397,341
138,423
1,316,860 1,606,533
174,646
1,939,997 1,790,808
3,134,500 30,787,525 31,714,027
1,514,953 13,006,031 15,077,614
1,619,547 17,781,494 16,636,413

Arizona, Louisiana, New Mexico, Oklahoma, and Texas.
Preliminary.

p -

GROSS DEMAND DEPOSITS
Reserve
city banks

Total

Date

1958, November.
1959, November.
1960, July •.....
August •.• •
September.
October..•
November.

7,828
7,919
7,421
7,506
7,577
7,699
7,879

Country
banks

3,832
3,823
3,772
3,745
3,814
3,875
3,933

3,996
4,096
3,649
3,761
3,763
3,824
3,946

SOURCE, F. W. Dodge Corporation.

TIME DEPOSITS
Total
2,090
2,100
2,184
2,280
2,317
2,368
2,426

Reserve
city banks

1,131
1,077
1,104
1,143
1,170
1,198
1,229

Country
banks

BUILDING PERMITS

959
1,023
1,080
1,137
1,147
1,170
1,197

VALUATION (Dollar amounts in thousands)
Percent change

Nov. 1960
NUMBER

from
11 months,

Area

DAILY AVERAGE PRODUCTION Of CRUDE OIL

Nov.

11 mos.

Nov.

11 mos.

1960

1960

1960

1960

Oct. Nov.
1960 1959

1960 from
1959

ARIZONA

(In thousands of barrels)

776

9,390 $

2,396

$ 35,132

-31

-16

-4

324

Abilene ••....•
112
Amarillo ..... .
195
Austin ....... .
256
Beaumont •... .
274
Corpus Christi ••
262
Dallas ..•.... . 1,788

4,876

846

22,616

-32

-61

-13

395
459
114
882
252
188
995
235
109

1,711
3,373
3,165
3,349
1,037
23,248
6,114
6,967
1,418
12,892
2,534
2,030
12,922
2,581
2,561

1,499
1,785
2,595
1,984
910
9,869
5,077
3,814
334
14,356
2,525
598
3,056
1,235
2,606

21,765
30,785
40,186
17,174
10,830
128,914
44,310
43,903
5,982
274,414
34,977
9,460
52,747
15,857
26,330

Totol-17 cities •• 7,616

100,168

$55,485

$815,382

Tu(json ••••..•.

LOUISIANA
Change from

Shreveport •...

TEXAS
November

October

November

October

November

Area

1960'

1960'

1959'

1960

1959

ELEVENTH DiSTRiCT ..•..•..

2,834.9
2,465.6
447.6
1,104.7
125.2
101.2
686.9
258.8
110.5
4,134.9
6,969.8

2,781.5
2,415.5
436.5
1,075.0
121.2
101.8
681.0
255.5
110.5
4,036.3
6,817.8

2,941.1
2,560.0
467.6
1,143.5
136.5
109.0
703.4
248.6
132.5
4,040.5
6,981.6

1.9
2.1
2.5
2.8
3.3
-.6
.9
1.3
.0
2.4
2.2

-3.6
-3.7
-4.3
-3.4
-8.3
-7.2
-2.4
4.1
-16.6
2.3
-.2

Texas .•.........•..•.• •

Gulf Coast •...........
West Texas •.......•..
East Texas (proper) .•..•
Panhandle •••• ........
Rest of State .. ...•....
Southeastern New Mexico ..
Northern louisiana ••.••••

OUTSIDE ELEVENTH DISTRICT.
UNITED STATES ............
'SOURCES:

1

2

Estimated from American Petroleum Institute weekly reports.
United States Bureau of Mines.

I BUSINESS

REVIEW

1: 1961

EI Paso •..•..•
Fort Worth •..•
Galveston •....
Houston •.•...

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

-48 -18
-18
-8
-15
2
11
50
29
14
-13
-6
70
1
18 -38
147
241
-51
2
49 -11
45
68
19
16
-25
28
13 653
-22

-2

-16
-9
-25
-15
-41
-19
-27
-21
65
34
-34
2
-5
-4
103
-4