Full text of Review (Federal Reserve Bank of Dallas) : April 1960
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BUSINESS REVIEW APRIL 1960 Vol. 45, No.4 RECENT DEVELOPMENTS IN THE DISTRICT PETROLEUM INDUSTRY After two rather disappointing years which were marked by generally lower levels of crude oil production and declining prices for petroleum products, the petroleum industry looked to 1960 as a year for at least some improvement. In the Southwest - most notably in Texas - petroleum companies, leaseholders, royalty owners, and others have felt the effects of the prolonged period of low production allowables; and because of the industry's substantial contribution to the employment and income of the area, the prosperity of many communities has been affected. The petroleum industry entered the winter months (traditionally the period of highest product demand, refinery operations, and crude oil production) with stocks of crude oil and refined products in statistically good balance with industry requirements. Following five consecutive months when Texas crude oil production was limited to 9 days, output was scheduled for 10 days in December, and crude oil prices firmed. Furthermore, the mandatory import quotas on foreign crude oil and refined products seemed to assure domestic producers and refiners the benefits of the improvement in demand anticipated for 1960. Before the beginning of the new year, however, forecasts and hopes for a more prosperous petroleum situation in 1960 had already been modified by the unseasonably warm winter weather, revealing the extent to which the domestic petroleum industry can become unbalanced by small shifts in demand. Total demand for the four major refined products during December and January averaged only 8,718,000 barrels daily, or 4 percent less than a FEDERAL RESERVE DALLAS, BANK OF DALLAS TEXAS This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) year earlier, and demand for distillate fuel oils was 12 percent lower. Despite the weakness in demand in these 2 months, Eleventh District crude oil production advanced, and refinery output increased more than seasonally to a daily average of 2,332,000 barrels, or 1 percent higher than a year ago. The combination of the enlarged output of refined products and relatively low demand re-established an oversupply situation, with total stocks of the major refined products on February 5 at about 9 percent above a year earlier and supplies of light heating oils up 32 percent. As a result, Gulf Coast prices of heating oils were reduced to the lowest seasonal levels in 8 years. winter only re-created the inventory problem which now threatens to necessitate another period of painful adjustment. During the months of peak demand for petroleum products, December through February, District crude oil output averaged only 3,072,000 barrels daily, with Texas producers limited to 10 days of allowable output. However, all areas of the country have not shared equally in the crude oil production cUrtailments. While Texas petroleum output from December 1, 1959, to March 1, 1960, averaged 12 percent less than in the comparable period during 1956-57, winter production in all states was only 3 percent lower. Surpluses of the refined products appear to dim prospects for an early rise in Texas daily allowables; in fact, the April schedule has been reduced to 9 days, or an expected cut of 123,029 barrels per day. Substantially colder weather prevailed over the major heating oil areas during much of Feb~uary and March; and with rising industrial activity, the total demand for Perhaps more than ever before, southwestern prorefined petroleum products resisted the usual seasonal decline. Nevertheless, demand continued below the ducers are now earnestly engaged in efforts to protect year-earlier total, and stocks of most refined products their market shares by investing in new and more effiwere at record levels for fuis time .of the year. On March cient materials to drill and produce crude oil and by sup4, an approximately 39-day supply of distillate fuel oils porting cooperative unitization of oil and gas reservoirs was in inventory, compared with the previous postwar and other production practices to lower costs and raise March record of a 36-day supply reached in 1950. output. Recently, more producers have been asking for Stocks of gasoline, at 2l9,428,000 barrels, were sub- wider field spacing as a means of lowering development stantially above normal requirements. As an outgrowth costs. In addition, producers and regulatory agencies of these excessive stocks, wholesale prices of most re- are reconsidering the proportionate shares of the limfined products have weakened considerably; however, ited total output which should go to new wells, strippers, if inventories continue to decline at the rapid pace and wells operating under secondary recovery methods. achieved during the second week in March, prices may For the first time, New Mexico recently began restrictfirm. ing the output of secondary recovery wells, and the Texas Railroad Commission has been under increasing Rather than bolstering hopes for a prospective period pressure to reduce the number of wells exempted froIll of improvement in the petroleum industry, the 1959-60 allowables. In Oklahoma, support has been given to a proposal to raise the minimum allowable per well to CRUDE Oil PRODUCTION " AND REFINING 50 barrels daily, which, if granted, would require a Elevent" Federal Reserve District basic redistribution of petroleum production in that (In thousand. of barre ls doily) State. Crude oil production Date 1958, January . .. ................... . February, . .. .... . ......... . .. . March ... .......•.. . • . .... . ... 1959, January . .... ......... ..... ... . February .••..•.....•.......... March .•........ . ...... •. . .... April ........................ . May •.. .·............. .. .. . . .. June • .••.•..... •. .•..••.•... . July .................. ....... . Augus\ •. . ............. . . ... .... September . ... ..... ... ....... . ~~~~~eb;r·.', : :::'::::::'::::::. :: : Deceri)ber ... .........•........ 1960, January ...................... . February .................... . . March .•..........•....• . ....• e - Estimated. SOURCES, American Petroleum Institute. United States Bureau of MInes. I BUSINESS 12 REVIEW 4:1960 3,098 3,115 2,690 3,286 3,251 3,261 3,212 3,234 3,072 2,865 2,849 2,891 2,907 2,941 3,072 3,042 3,164 3,085e Crude runs to reflnery still s 2,182 2,036 2,082 2,359 2,180 2,288 2,277 2,360 2,226 2,174 2,~46 2,199 2,073 2,197 2,3'1 4 2,350 2,353 2,260. Possibly because of the imposition of strict mandatory controls on imports of foreign crude oil and refined products, the District refining industry has been successful in retaining most of its market share. From last December to March, District refiners processed about 29.0 percent of domestically produced and imported crude oil, compared with 29.6 percent during the 1956-57 winter. Crude oil imports, averaging 989,000 barrelS daily last winter, were near record levels. In addition to, and partly caused by, the persistent surpluses of crude oil and refined products in the early months of 1960, unexpectedly low levels of drilling ac- tivity have discouraged the petroleum industry. In the January-February period, there were only 1,761 oil well completions in the District, contrasted with 2,134 completions a year earlier. On a year-to-year basis, total oil and gas well completions decreased 13 percent, and the footage drilled declined 10 percent. The somewhat smaller decline in drilling footage partially reflects a reduction in development wells and an increase in wildcat wells, which commonly are deeper than development holes. It is estimated that 15 percent fewer development wells were drilled within the District during the first 10 weeks of this year than in early 1959, with the sharpest decline noted in Texas. On March 7, the number of rotary rigs in operation in Texas was about one-seventh below a year earlier. Within the District states, drilling trends during the first quarter of this year have been mixed. In central, south, and southwest Texas, well completions have been nearly equal to the year-earlier levels; however, in west Texas, Oklahoma, and inland Louisiana, from 19 percent to 36 percent fewer holes were drilled during the first 10 weeks of 1960. In east Texas, New Mexico, and Offshore Louisiana, well completions have been running moderately higher than a year ago. Part of the decrease in District drilling activity t4us far this year may have been due to inclement weather, but the prospect of continued low crude oil production aUowables also appears to have dampened drilling interest. Excess crude oil production capacity may be expected to affect current field development more than exploratory drilling ; however, a sharp and persistent decline in geophysical activity within the District indiCates that wildcat drilling may be directly affected as DRILLI NG ACT IVITY Ele ve nt h Fed e ral Rese rve District ~~~~===================================== Oil an d Rotary ri gs (W eekly Developm ent Do tc overage) w ells wells gas well compl etions 1 1958, January ....... 93 2 886 856 857 8 23 856 906 934 9 43 923 929 897 951 992 905 710 722 1,779 1,268 1, 192 1,732 1,229 1,407 1,635 1,478 1,443 1,752 1,49 1 1,645 1,46 1 1,314 1,441 1,526 991 478 313 282 415 266 321 326 297 299 409 342 362 310 305 377 403 229 1,466 1,039 1,036 1,354 984 1,11 9 1,286 1,168 1, 159 1,372 1,169 1,295 1,126 1,09 1 1,113 1, 195 767 ---- February ... . .. March ....... . 19 59, January ..... .. February .. . . . . March .. . .... . April . . . ...... May . .. . ... . . Jun e • ....... . Jul y ...... . ... August . ..... . . Septe mb er .... Octob er .. .. . . November . ... . Decemb e r ..... 1 960, Ja nuary • .. .... February . .... . ~6ncludO$ dry ho les and se rvice wells. URCE , Tho Oil and Gas Journal . Wildcat well. Outside the District, geophysical exploration has increased in recent months to near-record levels , with . Interest centered upon the Rocky Mountain area and the State of Mississippi. In 1959, total well completions in the District states advanced nearly 4 percent, or at about the same rate as nationally; but proved reserves of crude oil increased nearly 6 percent, contrasted with a modest decline in domestic reserves outside the District states. With Texas registering its first advance in crude oil reserves since 1953, District proved reserves rose to 22,410 million barrels on December 31, 1959, or nearly 71 percent of the Nation's domestic supply. Extensions and revisions of old fields accounted for nearly 90 percent of the additions to District reserves, but the District's share of new discoveries in the Nation was greater than its share of total reserves. However, in both the District and the Nation, withdrawals from producing fields, as in past years, greatly exceeded proved discoveries in new oil pools. Louisiana led the Nation in new discoveries, followed closely by Texas, but the relative positions of these tW? leading states were reversed with respect to changes 111 reserves due to extensions and revisions. Louisiana and Texas accounted for almost 90 percent of the net addition to proved reserves of crude oil in the District states last year. Proved reserves rose about 15 percent in both Louisiana and New Mexico in 1959, but Texas reserves increased only 3 percent and Oklahoma recorded a decline. Both New Mexico and Louisiana increased their shares of the Nation's store of crude oil reserves, but the Texas share declined from 68 percent to 66 percent. Reserves of natural gas liquids and natural gas in the District states each rose about 4 percent last year and accounted for aro und 86 percent and 82 percent, respectively, of the national totals at the end of December. For most areas in the District, increased production and sales of natural gas and liquid petroleum gases have made up for part of the weakness in crude oil production. Marketed output of natural gas in Texas totaled an estimated 5,230 trillion cubic feet in 1959, reflecting a gain of 6 percent over the 1958 level, and production of liquid petroleum gases rose 16 percent. In contrast to the weakness in prices of crude oil and refined products, natural gas prices have risen steadily in recent months, particularly prices on sales contracts for intrastate delivery. THEODORE R. ECK General Economist BUSIN ESS REVI EW \ 4: 1960 3\ THE EMERGING EMPLOYM,ENT PATTERN Economic developments in the Southwest during 1959 displayed an interesting pattern of strong recovery and prosperity in the first half of the year but mixed trends and more moderate growth during the final 6 months. The employment situation in the area reflected these trends, with gains in employment at somewhat lower rates than in other postwar years. The changing structure and long-run forces affecting the major economic sectors of the Southwest, as well as some rather special short-run developments, retarded growth in both employment and general business. During the first 5 months of 1959, continuing the economic recovery of the previous year, the Southwest and the Nation rode the rapidly rising trend of increased production, construction, employment, and personal income - a trend stimulated, in part, by a potential steel strike and additional gains in consumer buying and business spending. However, by early summer, a number of factors came to the forefront to reduce the rate of growth in the Southwest. Of particular importance were the strikes in steel and copper industries; the contract cancellations at major defense plants; the oversupply of petroleum and petroleum products, which led to cutbacks in crude oil allowables; and the declining prices of agricultural products. Industrial production in Texas rose to a May record and then turned downward moderately until November. While the confidence of businessmen and consumers remained high despite the strikes, a measure of caution developed with the recognition that the southwestern pattern of economic developments was showing less strength than the Nation's and that perhaps the problems of this area were more fundamental than those depressing national industrial production levels. The employment data on the Southwest followed these trends but also reacted to the reluctance of businessmen to expand personnel. This reluctance was caused mainly by the steadily rising labor costs; increased efficiency in utilization of existing personnel, in part due to further mechanization; and the general ease in the employment situation, which made workers re~di1y available ex~ept in some of the more specialized skills. Average earmngs and personal income of south~estern ~orker~ were favorably affected by continued illcre~ses ill baSIC wage rates and by the slight improvement ill total employment, but the rates of gain slowed markedly from previous years. Moreover, despite gen- I BUSINESS REVIEW erally high-level activity in most segments of the southwestern economy, the rate of unemployment remained well above the postwar standards of this area. Some of the long-range problems of the area which were apparent in 1959 are recurring in 1960. The oversupply of petroleum products has been re-established, bringing prospects for renewed cutbacks in state allowables, some curtailment of refinery runs, and a continued low level of drilling activity. This petroleum situation, in turn, is having a significant impact upon oil field equipment, service, and supply businesses. The rate of cancellation of defense contracts appears to have slowed somewhat, but southwestern plants do not seem to be obtaining their former share of the contracts. In addition to such specialized problems, the Southwest shares with the Nation the current decline in residential construction and the hesitations, at least of the moment, in steel and automobile production. This economic situation is mirrored in the total and internal composition of employment in the Southwest. The January 1960 nonagricultural employment total of the five southwestern states-Arizona, Louisiana, New Mexico, Oklahoma, and Texas - showed a gain of slightly more than 2 percent over a year earlier. The current year's total of 4,348,800 workers is a nearrecord level for January, but the individual states reported marked differences in their rates of change over the past 12 months. The largest percentage improvement occurred in Arizona, followed by Texas, Oklahoma, New Mexico, and Louisiana. Individual state differences are largely indicative of their internal economic developments and, in this particular situation, may reflect the significance of the economic segments in the Southwest which have been showing little growth Of actual declines. NONAGRICULTURAL EMPLOYMENT IN THE SOUTHWEST JANUARY 1960 AND JANUARY 1959 TOTAL NONAGRICULTURAL EMPLOYMENT = MANUfACTURING EMPLOYMENT - January Area January Percent Jan uary January 1960p 1959 increase 1960p 1959 Percent change 298,200 76 1,600 223,000 549,700 2,422,900 5.2 1.1 1.7 2.1 2.2 47,100 137,800 16,500 87,200 488,800 43,900 139,000 16,300 83,500 476,100 7.3 _.9 1.2 4.4 2.7 2.2 777,400 758,800 2.5 313,600 769,900 New Mexico. 22 6,900 Oklahoma .. . 561,100 Texas .... . . 2,477,300 Arizona . ... Louisiana . •• --- --4,255,400 Total ..... 4,348,800 p Preliminary. SOURCE: Stot e emp loym e nt ag encies. in Texas and New Mexico but an actual decline in Louisiana. EMPLOYMENT CHANGES IN SELECTED SOUTHWESTERN NONAGRICU LTURAL INDUSTRIES JAN UARY 1960 FROM JAN UARY 1959 Tota l nonagricultura l Manu- Area e mploym ent facturing Trado Arizona • •• • .. •• louisiana . ...... Ne w Mexico .. . o. Oklahoma ••• •• • Te xas .... .. .. . . 15,400 8,300 3,900 11,400 54,400 3,200 -1 ,200 200 3,700 12,700 5,600 7,300 2,200 5,600 26,300 3,600 2,800 2,500 600 8,000 3,900 2,400 800 2,700 8,100 Total • • . • •••. • 93,400 18,600 47,000 17,500 17,900 N Se rvices Government OTE . _ Al l figuro . oro de rive d from preliminary data for January 1960. SO URCE , State e mployment agencio •. For the five states as a whole, the major categories of nonagricultural employment with the greatest percentage gains over January 1959 were trade, financ.e, and services. Relatively small percentage advances. m employment occurred in government, tr~nsportatlO1l: and utilities, and manufacturing, while declmes were eVIdent in construction and mining. Measured by the actual number of workers added during the 12 months, the largest improvements were in trade, manufactu~ing, government, and services, which showed a combmed gain of 101,000 workers. Among the nonmanufacturing segments: the l.oss in mining employment was most noticeable I? ~nzona, Where an extended copper strike was the prmcIpal factor. Although the strike has now been settled, the January employment data do not reflect the return-to·wo~k movement. More fundamental declines occurred m Louisiana, Oklahoma, and Texas, where the decr~ases in mining employment were more .directly assoclated with the problems of the petroleum mdustry. The overall decline in construction activities has centered most heavily in New Mexico and Louisiana, although Oklahoma and Texas have shown some reductions also. The year-to-year construction employment dec~ine may have been caused, in part, by the unusually mclement Weather in most of the Southwest and, in part, by the downward movement in both residential and highway Construction activity. However, Arizona construct~on employment was moderately higher than ~ year earlier. lIigher rates of gain in Arizona stem partIally from. the fact tllat with a smaller employment total, even a mmor gain in ~umber can be a large percentage improvement. . On a year-to-year basis, manufacturing emp~oyment In the five southwestern states rose 2.5 percent m January 1960 to a total of 777,400 workers. T~e c.hang~s ocCurring in this sector reflected strong gams m Anzona and Oklahoma and more moderate improvements In Texas the distribution of manufacturing employment shows that manufacturers of durables and nondurables made equal rates of gain in employment over the past year. However, there were some marked differences among the major manufacturing industries of the State, varying from a gain of 40 percent in electrical machinery employment to a decline of 12 percent in transportation equipment employment. The extremely high rate of advance in electrical machinery reflects the growing electronics industry, particularly in the DallasFort Worth area. In contrast, the sharp cutback in transportation equipment employment was occasioned principally by reductions in force at the major aircraft producers in the same area. Among other durable goods manufacturers, a strong employment increase was shown in machinery (except electrical), and there were moderate gains in lumber and wood products and primary metals. The gain in primary metals employment is traceable largely to the increased activity at steel and aluminum producers. In the Texas nondurable goods manufacturing sectors, the main employment gains were shown in leather and leather products and apparel and finished fabrics. On the other hand, actual declines were evident in petroleum refining and textile mill employment. The basic reasons for the improvement in apparel and finished fabrics can be attributed to a general increase in the demand for apparel, particularly sportswear, of which the Southwest is a major producer. The decline in petroleum refining is, of course, another part of the generally contractive pattern of the petroleum industry. Other declines were relatively modest and could have occurred merely because of fluctuations in work schedules. NO NAGRI CULTU RAL EMPLOYMENT IN SELECTED MAJOR SOU THWESTERN CITIES JANUARY 19 6 0 AND J AN UARY 1959 Actual increase a~r:~~tt January AR IZONA Tucson ... . ... . TeXAS Dalla .... . . . .. EI Pa . o ...... . For t Worth .. .. Ja nua ry 1960p Ar ea 1959 Act ua l increase increase Percent southwestern increase 67,300 63,200 4, 100 6.5 4.4 Houston . .. . .. San Antonio . .. 430,630 89,500 206,800 488,020 203,935 413,380 82,250 204,200 47 1,450 198,430 17,250 7,250 2,600 16,570 5,505 4.2 8.8 1.3 3.5 2.8 18.5 7.7 2.8 17.7 5.9 Total-6 citio s. .. 1,486,185 1,432,910 53,275 3.7 57.0 p - --- Pre liminary . SO URCE , steto e mploymont agencio • . B U S I NESS REVI EW 4: 1960 I Among the major cities of the Southwest, there were substantial variations in the year-to-year comparisons of nonagricultural employment. The largest gains appear to have occurred in El Paso and Tucson, with more moderate but better than average increases in Dallas and Houston. The rates of gain in San Antonio and Fort Worth seemed to be somewhat closer to the average rate of advance for the entire Southwest. The relatively strong employment gains in the major cities are a part of the pattern of a concentrating population which has been noticeable in the region for many years. The differences between the cities are occasioned mainly because of the relative importance of the various sectors of nonagricultural employment. For example, the Dallas metropolitan area is heavily committed in the finance, trade, and service fields, which are among the major sectors of nonagricultural employment showing the greatest improvement in the Southwest as a whole. On the other hand, special circumstances have combined to slow the rate of growth in Fort Worth and also in San Antonio, where the rate of increase has largely tracked the advance in government employment, which is very important in that city. Unemployment in Texas, showing modest improvement from a year earlier, was 5.4 percent of the labor force in January 1960. Among the major reporting cities (which account for approximately 95 percent of the State's uneclployment total), the largest ratios of unemployment to labor force were for the BeaumontOrange-Port Arthur area, the Texarkana area, and the Corpus Christi area. The special problems in the Beaumont-Orange-Port Arthur area reflect the impact of re- ductions at some of its major refineries. The Texarkana situation, one of long standing, is at least partially a result of the cutbacks at the Lone Star ordnance plant. Finally, the Corpus Christi situation is probably reflective of curtailments at certain defense installations, as well as the cutbacks in the petroleum industry. The largest cities in Texas reflected unemployment ratios ranging from 3.4 percent to 5.3 percent of their respective labor forces. With the southwestern economy continuing its recent moderate rate of growth, increases in employment are likely to be relatively modest. Nevertheless, special factors developing in the Southwest might provide a stimulus to the employment situation, particularly the manufacturing sector. These factors include a strong and continued rise in the electronics field, additional gains in end-product manufacturing, and potential developments in primary metals. The expected continued growth in chemical plants in the Southwest may also be an important stimulus, especially for construction employment and the demand for highly skilled or professional workers. Other expected trends in employment include a further gain in service employment as recreation areas expand, continued concentration of labor in major cities of the Southwest, and a steady upgrading of employee training requirements. Increased demand for professional and highly skilled workers will be a major feature of the Southwest's labor market as technological inlprovements continue in southwestern industries. Thus, wage differentials against unskilled workers may widen. ELEVENTH FEDERAL RESERVE DISTRICT ~ Dallal Head OHico Territory IIIIIIl HOUlton Bronch Terrllory 1 ;:;:::::::1 Son Antonio Bronch Territory ~ EI PalO Bronch Territory I BUSINESS REVIEW 4:1960 - REVIEW BUSINESS BUSIN ESS, AGRICULTURAL, AND FINANCIAL CONDITIONS Unseasonably cold weather held Eleventh District depa rtment store sales in February at the comparable 1959 level. At the end of February, departrnent store inventories were up less than seasonally from a month earlier but were higher than at the sarne time last year. New car registrations in the four rnost populous counties in the District, showing little effect from the unfavorable weather, rose above both a month ago and a year ago. Some progress has been made in preparing land and planting spring crops. Vegetable and citrus production remains favorable, and livestock conditions have improved as temperatures have moderated. Deposits at weekly reporting banks in the District rose substantially in the 4 weeks ended March 16, partly reflecting the usual receipt of funds to meet oil run payments. The deposit gain enabled banks to reduce borrowings, increase cash balances, and show a net increase in earning assets. Ice and snow over a large part of the District in late February appeared to be the principal reason why Eleventh District department store sales declined more than seasonally from January and just equaled February 1959 sales, despite the additional trading day in the lnonth this year. The seasonally adjusted sales index for February was 157 percent of the 1947-49 average, down from 171 in January and 163 a year earlier. Sales remained below a year ago in early March as the cold, wet weather continued, and cumulative sales through mid-March 1960 were 2 percent lower than in the comparable period of 1959. Data from department stores that report on sales by tYpe of goods indicate that consumer durable goods Crude oil production in the District was contraseasonally lower in February and was 6 percent below a year earlier. Crude runs to stills declined more than seasonally as refiners attempted to reduce supplies of finished products, and strong late-season demand for heating oils contributed to an unusually rapid reduction in stocks of major products. Continuing excessive stocks of gasoline and distillate fuel oils are believed to be responsible for a scheduled 4-percent reduction in Texas crude oil output during April. Total nonfarm employment in the District states increased contraseasonally during February, with gains occurring in construction, government, finance, services, and mining. Unemployment in Texas rose less than seasonally. Industrial production in the State advanced slightly during the month; however, total manufacturing showed a small decrease. Construction contracts awarded in the District states increased less than seasonally during January, as further declines in residential awards more than offset the strength in other construction. INDEXES OF DEPARTMENT STORE SALES AND STOCKS Eleventh Federal Reserve Di strict (1947 -49 = 100) SALES (Dail y average) Dote Unadiuste d Se asonally adiusted 1959, February_ _____ Dece mb er.. ... 1960, January. ... • • • Fe bruary.. . • • • 127r 29 1 135 122 163r 168 171 157 r p - STOCKS (End 01 month) Unadiusted 16 4r 170 161 170p Sea sonall y adiuste d 169r 183 183 176p Revise d . Preliminary. sales in the District in February were better relative to a year ago than were sales of soft goods. Outstanding examples were sales of radios, television sets, and musical equipment, which rose 31 percent, and sales of domestic floor coverings, which gained 24 percent. A year-toyear decline of 1 percent was recorded in sales of womBUSINESS REVIEW 4:1960 I 71 CASH RECEIPTS FROM FARM MARKETINGS DEPARTMENT STORE SALES (Do liar amounts In thousands) (Percentage change in retail value) February 1960 fram Area January 1960 February 1959 Total Eleventh District • •..... . . -10 Corpus Christi . ... . ..... . ... . . o Dallas . • . . . .. . ......... .. ... EI Paso •. .. ......... . ...•... Fort Worth .. .. ...... . . . .•.. . -11 -2 -12 -11 -13 -11 -7 -6 0 -3 4 - 13 Houston • ••• . . . ... • •... . ... . San Antonio . ...... . . ....... . Shreveport, La .. ... . .... . ..•. Waco ............ . ... .. • . . . Other cities .. . .. ...... . ... . . -7 10 -2 -3 -6 -1 2 months, 1960 from 1959 4 - 14 Oklahoma .......... . . . ... . . Texas . ........ . . ..... ····· . 404,278 391,259 230,056 601,545 2,195,561 7 Total . ••.. . ..... . ..... . ·· . United States . . .. . . .. ..... . $ 3,822,699 $32,777,499 -1 -7 -5 -5 -5 -7 o en's and misses' dresses, although men's clothing sales and sales of women's and misses' coats and suits each rose 6 percent over February 1959. Inventories on hand at the District department stores at the end of February were up less than seasonally from a month earlier but were 4 percent higher than the February 1959 leveL Orders outstanding were also up 4 percent from a year ago, but new orders placed during the month were 7 percent lower than in February last year. Arizona . . ... ......... . ... . . Louisiana . . • ... • .... . ..... . . New Mexico .... . ........... . 1958 1959 Area $ $ 435,582 361,555 225,285 633,777 2,372,620 $ 4,028,819 $33,559,73 2 Percent change -7 8 2 .-5 -7 -5 -2 SOURCE , United States Department of Agriculture. mercial vegetable areas, most of the early watermelon and cantaloupe fields which were frozen by the late February freeze have now been replanted. Additional acreages of spring vegetables are being seeded in south Texas. Throughout vegetable areas, the low temperatures are checking development of crops, and warm, open weather is needed. Texas winter vegetable production for fresh market is forecast, as of March 1, at 60 percent larger than a year ago. Higher prospects for cabbage, carrots, and lettuce have resulted in larger anticipated output than was forecast earlier. Production of all types of winter vegetables is expected to be larger than in 1959. Despite the unfavorable weather, new automobile registrations during February in the four most popuFreezing temperatures in the Lower Valley in late lous counties in the District rose 14 percent over Jan- February "burned" tender growth on citrus trees, but uary and 16 percent above a year ago. The greatest most of the damage was confined to young trees and is improvement in both comparisons was in the Houston not expected to affect next year's crop materially. Texas area, although increases were also recorded in Dallas citrus production for the 1959-60 season is estimated at and San Antonio. In Fort Worth, February registra- 8.8 million boxes, as of March 1. The latest estimate tions were below both the month-earlier and the year- indicates an output of 3 million boxes of orangesearlier reports. Cumulative registrations through Feb- down 200,000 boxes from the month-earlier forecast. ruary in the four areas were 1 percent ahead of those Grapefruit production is placed at 5.8 million boxes, in the same period last year. which is unchanged from the previous estimate. Brief periods of warm, open weather in the latter part of March permitted some progress in land preparation and planting in the District, although wet, cold weather maintained a tight grip on most sections during much of the past month. Coastal Bend area cotton, corn, and sorghums, which are usually well advanced by March, are quite late this year; and in much of Louisiana and in the Texas Blacklands, very little headway has been made in preparing fields for planting. Additional rain would be welcome in south Texas and the Trans-Pecos area. In the Lower Valley, corn and sorghums are mostly planted, and cotton seeding is well advanced. In com- I BUSINESS REVIEW 4:1960 Livestock continue to show shrinkage from cold weather and lack of green forage. The failure of small grains, clovers, and winter grasses to provide grazing has kept supplemental feeding at high levels. In some areas, roughage supplies are being exhausted, and many stockmen are purchasing hay. Warmer temperatures during the latter part of March boosted grazing prospects. An increase in deposits during the 4 weeks ended March 16 enabled the District's weekly reporting member banks to make an appreciable reduction in borrowings, boost cash balances, and show a net increase in earning assets. COND ITION STATISTICS OF WEEKLY REPORT ING MEMBER BANKS IN LEADING CITIES Eleve nlh Fe dera l Reserve District (In thou sonds of do llors ) Itom Mar. 16, 1960 ASSE TS Com mercial and industrial loans • ••••• ..••.. .. 1,459,988 31,1 29 Ag ri cultural lo ans •••.• ••• •• . •• • ••.•••• . . . • • l oan s to brokers a nd d ea lers for purchasing or carryingl U. S. G ove rnm ent securities •• • • • • .. • • • •..•• O the r securities • . • . • .• • • . •. •.• •• .• •• •• .. Oth e r loons for pu rchasin g or carrying: U. S. G overnm ent securities • •• • •• • • . .. ••• . . Other securities ••. • ••• . •• • •• . .•• •••• •• •• Loans to nonbank Anancla l institutions: Sa les Anan ce, p ersona l Ananc e, e tc .• • • . • . . . • Saving s banks, mtg e . cos., ins. cos., e tc .• .•. . • Loans to for ei gn bank s •• • •• • •• •••• •• •• •• ••• Loans to dom estic comme rcia l banks ••• • • . •• • •• Real- estat e loans • •.•.. .. •••••• •• .. •• • • • •.. All other loans . .... . .. . •.• .. . . .•• ... . . .•. . Feb. 17, 1960 1,476,337 32,221 Ma r. 18, 1959 35,724 291 2 t,035 383} 19,5 13 2 1,783 7,330 194,33 2 8,5 24} 193,582 183,944 14 2,643 99,11 5 754 53,275 206,694 738, 149 134,18 1 109,3 18 655 } 34,277 205,116 725,946 22,458 2 19,434 G ross loans .• .. • .•. ••.. .• .•.• . . •• . • . . • • 2,954,735 54, 190 l ess reserves and unallocat e d charg e -offs • • 2,940,053 53,722 2,835,931 48,785 Ne t loans . . . ... •••• . ••• . •.. ·••• · · •••••• 2,900,545 2,886,331 2,787,146 36,42 2 22,5 24 48,599 127,908 Tre a sury bills . • •. .. ••......••••. . .. . .• •• . • Tre a sury ce rtiAcat es of ind e bte dn ess • • •.. • •• •• Tre a sury notes and U. S. Government bon~ s, including g uarant eed obligations, maturing: Within 1 year • •. ••. . . . ••• . . • •· ·• •••••· · After 1 but within 5 years . • •.. . .. . .. . .. . . After 5 yea rs . ••........ . . .. . .... •.. .. . . Othe r securities • • ...•• . .. . •• • .• •• • . • . •• •• • --44,224 18,525 75,246 769,285 320,950 371,030 71,5 52} 760,379 1,187,3 2 1 3 16,2 11 346, 870 370,230 1,577,3 18 1,7 10,698 523,996 2,34 1 47,027 485,596 206,753 496,655 456,056 2,270 4 8,707 555,985 2 17,93 1 499,380 466,904 1,695 48,553 6 13,185 173,983 TOTAL ASSETS .••... .... .. .. . . . .•.• .. 6,316,545 ~ 6,30 1,544 990,753 16, 100 56, 100 2,838,777 93,863 216,936 892,228 14,029 50,13 1 2,945,597 88,030 260,259 974,300 15,463 9 2,108 Total domand de posits • ... . .•. .. • .. .• . . 4,2 84,852 4,105,964 1,014,873 11,255 394 239, 11 0 6,663 1,087,512 7,130 42 1 178,847 1,847 Tota l time d e posits •• • • . • ••• . • • • • •.• •• • 1,285,600 1,272,295 1,275,757 Total d eposits . •• •.. ••. .. . ..... . ••. . 5,570,452 74,265 127,180 All other liabilities • . • • • . . . . .•.• . .. ... .. ... . 544,648 Capitol accounts • • • • • ••••• • • • • • •••.. ••••.• 5,378,259 184,800 132,552 5 45,642 5,65 1,514 57,806 70,797 52 1,427 TOTAL LIABILITIES AND CAPITAL ACCOU NTS 6,316,545 6,241 ,253 6,301,544 A moderate loan decline occurred at the reporting banks between February 17 and March 16. Commercial and industrial loans were reduced $16.3 million, mainly because of a much lower level of borrowings by commodity dealers and petroleum companies. However, this contraction was almost offset by the $12.2 million expansion in consumer-type loans and a gain of $1.6 million in real-estate loans, Although sales finance companies increased their borrowings by $8,5 million, there was a net decline of $1.7 million in loans to nonbank fin ancial institutions. A gricul tural loans decreased moderately, and loans to finance securities transactions registered a slight gain, Gross loans (exclud ing interbank loans) showed a net decline of $4.4 million, which contrasts with an advance of $23 .5 million in the similar 1959 interval. 4,375,757 Time d e posits . Ind ividua ls, partne rship s, and cor pora tions . • • . 1,03 4,327 11 ,255 Unite d Stat es Governm e nt • • • • . • ••. .. • •• • . 394 Posta l sa vings •• ••• • • ••• • • . . ••• •. ••••• • • 236,076 States and politica l subdivisions • • • • • ••• • •.• 3,548 Banks in th e U. S. and foreign countries • • • . • • run payments. All classifications of demand balances reached higher levels, but increases in the accounts of banks, individuals, and businesses were particularly pronounced. In the time deposit category, the balances of individuals and businesses accounted for the entire gain of $1 3.3 million. On March 16, total deposits were 1.4 percent below the year-earlier level. Tota l in vestm e nts •. . •.•. •.• ••• . ••••••.• . • 1,599,2 60 Ca sh ite ms in process of co ll ection • • . .••• • . .•• Balances with banks in the Uni ted Stat es • . . • . •• Balances with bon ks in fore ign countries • • • • •• . Cu rre nc y and coin . . ••• . • .• • •• • ••• •• • •. . . . • Reserves with Fe d e ral Reserve Bank •• •• .• , .•.. O ther a ssets • • • • .• • . . • ••.• . • •• ••. . • •••. • .. - 55 1,027 - - LIABILITIES AND CAPITAL ACCOUNTS De mand d e posits . Individuals, partnerships, and corpo ra tions.... 2,89 1, 15 1 96,093 Unite d Sta tes Gove rnm ent • • • •• • • • • • .•••• • 234,655 States and poli tica l subdivisions ••• ••• • • ••.. Banks In the United States •.• • . .•. . .. .• ... . Banks in fo reign countries ••• , • ..•• • • .• . • •• Certlfl e d and offlcers' che cks, e lc..... . . .. . . Bills pa yab le, re d isco unts, e tc .... . .... ..... .. ~TE.-Effectivo July 1 , 1959, thi s series wa s revi sed . Th e re.vise.d f.o rm. incl udes s~ve ro l new ite ms, th e most imp orta nt of which is ioa ns to fl na nciol In stlt~tl on s , pre· lously re po rte d a ga inst othe r loan categories. Comparab le yea r-earli er flgures V for th e new ite ms wi ll bo shown whe n th ey be come a vaila bl e . The banks added almost $22 million to their investment portfo)jos during the period as they purchased sizable amounts of Treasury bills, notes, and bonds, Holdings of non-Governments increased slightly, but investments in Treasury certificates declined. RESERVE POSITIO NS OF MEMBER BA NKS Ele ve nt h Fe d e ra l Res e rve District (Ave ra ges of dai ly flgu res. In thousands of do lla rs ) Ite m RESERVE CITY 8ANKS Total rese rves held • • . ••• . ...• •• •• Wit h Fe dera l Reserve 8ank . • ... . Cosh a ll owe d a s rese rves . •..• ••• Re quire d rese rves •• • ... •.•.• ••• •• Excess rese rves •• • • ..• ••• ..• •• •.• Borrowing s • • .. •.•• .. . . • • ••• . • .•• Free rese rves • ..••••••• . •• • • • . . •• COU NTRY BANKS Total reserves he ld • • • • ••• .. ..•• .. With Fe d era l Rese rve Bank •• • •. • Ca sh allowe d a s rese rves ... . ••.. Re quire d rese rv es • • •• • . . . •• .. .. •• Exce ss re se rves ••• ••... • • •. .. • • .. Borrowings • ...• •••••••••• • •• . • • . Freo rese rves • •• •• • .. •• • • . ..• • • •• 4 weeks end ed Mar. 2, 1960 4 weeks end e d Month of Feb. 3, 1960 February 1959 52 2,846 520,853 1,993 520,5 15 2,331 63,745 - 61 ,4 14 548,015 5 44,963 3,05 2 5 42,2 60 5,7 55 73,519 - 67,764 561,900 463,380 456,910 6,470 4 15,371 48,009 16,8 19 3 1,190 475,349 46 8,572 6,777 42 2,289 53,060 9,579 43,48 1 464,323 986,226 977,763 8,463 935,886 50,340 80,564 - 30,22 4 1,0 23,364 1,013,535 9,829 964,549 5 8,8 15 83,098 -24,283 1,026,223 552,473 9,427 17,175 - 7,74 8 416,155 48, 168 3,983 44,185 ALL MEMBER BANKS Total deposits at the weekly reporting banks rose $192.2 million, over nine-tenths of which ($178 .9 million ) represented an advance in demand deposits, It should be noted, however, that much of the deposit gain reflected unexpended balances from the regularly reCurring monthly receipt of funds for making oil Total re serves he ld •• •••.. . ••••. •• With Fe d eral Rese rve Ba nk . • • ••. Cash allowe d a s rese rves .. • • ..•• Re quir e d rese rves . •..• • . .. • •• •• • • Excess rese rves • •.•. •• • .. ••..• ••• Borrowings • • • •.. ..• . •• . .•••• . . • . Free rese rves ••. •.• . . •• .. • • ... ••• 968,628 57,595 2 1,158 36,437 NOTE . - Regulat ions pe rm it ting me mb e r bo nks to count part of th ei r va ult cash In meetin g rese rve re quire me nts becam e e ffe cti ve in Dece mb e r 1959, and on Janua ry 1, 1960 th e rese rve computation pe riod for count ry me mbe r ban ks wa s change d to a biwe~k lY basis. Thorofare , month ly da ta comparable to ye ar.earli e r mate ri al are no t avai lable. B USIN ES S REVI EW 4:1960 I CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS (In thousands of dollars) It em March 16, 1960 Feb. 17, 1960 March 18, 1959 Total gold certiflcate rese rves ..... .... ..... . Discounts for member bonks . •... • . . ... •• ... 619,777 24,355 683,576 85,526 1,012,238 1,036,593 888,944 784,543 1,009,809 1,095,335 962,914 789,425 783,026 11,041 952 997,686 1,009,679 1,004,943 777,270 Other discounts and advances .. ........... . U. S. Government securiti es ... . ............ . Total earning assets .•.... ................. Member bank reserve deposits .... .... .... . . Federal Reserve notes in actual circulation •••.• o o Although average reserve balances of member banks in the District decreased $37.1 million in the 4 weeks ended March 2, required reserves were reduced by $28.7 million, resulting in an $8.4 million decline in average excess reserves. Average daily borrowings from the Federal Reserve Bank, at $80.6 million, were $2.5 million less than the previous 4-week average. There were, however, divergent movements in borrowings of the country banks and the reserve city banks. Country banks borrowed more from the Federal Reserve Bank, whereas the borrowings of reserve city banks registered a decline. Earning assets of the Federal Reserve Bank of Dallas decreased $58.7 million in the 4 weeks ended March 16· The reduction was due to a decline in discounts for ANNUAL BANK DEBITS AND ANNUAL RATE OF TURNOVER OF DEMAND DEPOSITS (Dollar amounts in thousands) Demond depositsl Debits to demand de posit accounts 1 Area - - - - - - - - - - - - - Annual rate of turnover Perc ent 1958 chang e 1959 1958 1959 ARIZONA Tucson ••••. ..... 2,675,236 $ 2,230,431 20 20.2 20.5 937,567 3,739,648 848,607 3,374,125 10 11 17.7 19.4 16.7 18.5 LOUISIANA Monroe .... ... . . Shreve port • . .... NEW MEXICO Roswell ........ . TEXAS 459,112 396,684 16 14.8 13.9 1,180,070 2,690,721 2,473,585 1,892,543 2,283,148 202,986 31,519,353 4,213,093 9,431,146 1,067,860 30,206,880 323,815 2,450,732 761,796 649,943 7,223,239 263,591 1,04 3,64 0 1,308,217 1,443,5 80 1,039,535 2,264,738 2,157,188 1,790,824 2,203,981 200,679 27,973,942 3,660,789 8,586,616 1,066,373 27,750,385 311,519 2,030,762 778,609 591,721 6,498,530 234,719 980,982 1,153,363 1,238,028 14 19 15 6 4 1 13 15 10 9 4 21 -2 10 11 12 6 13 17 18.4 22.8 16.0 18.2 19.9 9.9 27.5 25.1 25.0 16.8 24 .1 14.6 21.0 17.2 14.2 18.6 16.3 17.1 18.9 13.6 17.2 19.8 16.7 16.6 19.5 9.1 26.2 23.4 23.3 16.0 22.9 14.4 18.9 16.9 14.2 17.4 14.3 16.0 17.1 11.6 Totol-24 cities. . .. $ 110,44 1,501 $99,363,130 11 22.7 21.5 Abilen e . . . ... . . . Amarillo ....... . Austi n ... ..... . . Beaumont .. . . . . . Corpus Chri sti .. . . Corsicana .• . ... . Dallas • •.. .. . .. . EI Pa so . .. ... .. . Fort Warth .. ... . Galveston •... ... Houston • . . ..... laredo . . ...... . Lubbock • . ...... Port Arthur . . . .. . San Ang elo . ... . Son Antonio . ...• Tex arkana ' .. .. . Tyle r ........ .. . Waco .... .. . .. . Wichita Falls . . . . o 1 De posits of individuals, par tn ers hips, and corporations and of states and politicol subdivisions . !! Th ese flgures include only two bonks in Texarkana , Tex as. Total debits for all banks in Texarkana, Texa s-Arka nsa s, including on e bank locat ed in th e Eighth District , amounted to $576,950,000 during 1959. BUSINESS REVIEW 10 4:1960 member banks, offset to a minor extent by an increase in holdings of Government securities. Gold certificate reserves of the Bank decreased $63.8 million during the period, and Federal Reserve notes in actual circulation were reduced further. NEW MEMBER BANK The South Park National Bank of Houston, Houston, Texas, a newly organized institution located in the territory served by the Houston Branch of the Federal Reserve Bank of Dallas, opened for business March 10, 1960, as a member of the Federal Reserve System. The new member bank has capital of $250,000, surplus of $150,000, and undivided profits of $100,000. The officers are: W. Raymond Garrison, President; John H. Wilson, Vice President and Cashier; and James S. Garbs, Assistant Cashier. NEW PAR BANK The Texas State Bank, San Antonio, Texas, a nonmember bank locafed in the territory served by the San Antonio Branch of the Federal Reserve Bank of Dallas, was added to the Par List on its opening date, March 15, 1960. The officers are: E. A. Williams, President; B. Frank Spindle, Vice President; and Carl R. Dungan, Cashier. Crude oil production in the District, which averaged 3,076,000 barrels daily during the first part of March, was contraseasonally lower than in February and 6 percent below a year earlier. In the Nation, output also declined during early March but was only 1 percent less than a year ago. Imports of crude oil during the 5 weeks ended March 11 advanced to the year-earlier rate, but purchases of foreign refined products decreased seasonally and remained considerably lower than a year ago. Total imports of crude oil and refined products during February and the first part of March averaged about 1,855,000 barrels daily, or 12 percent under the comparable period of 1959. Crude runs to stills in the District and the Nation declined more than seasonally during the first part of March as refiners attempted to reduce supplies of finished products. District crude runs averaged 2,240,000 barrels daily during early March, compared with 2,295,000 barrels daily a year earlier, and refinery operations outside the District were 7 percent lower than a year ago. Reductions in refinery operations do not appear to have resulted from shortages of crude oil. Total demand for the major refined products declined considerably less than seasonally during the 5 weeks ended March 11 but was 4 percent under a year ago. Unseasonably cold weather during most of February and March caused strong late-season demand for heating oils, although sales continued below the record level of a year ago. The less than seasonal decline in demand, combined with unusually large reductions in refinery output, resulted in a considerably greater than expected decrease in stbcks of refined products during the past several week:s. Nevertheless, on March 11, inventories of the four major refined products totaled 376,066,000 barrels daily, or 4 percent above a year earlier. Stocks of distillate fuel oils were 16 percent greater than a year ago, and gasoline stocks were over 5 percent higher. Despite recent large imports of residual fuel oils, inventories are considerably lower than at this time in 1959. Heavy stocks of gasoline, kerosene, and distillate fuel oil have depressed prices of these products; shipments of light heating oil reportedly were available on the Gulf Coast during mid-March at as low as 7.5 cents per gallon, contrasted with 10 cents per gallon a year ago. Continued excessive stocks of refined products are believed to be responsible for a I-day reduction in Texas crude oil production allow abIes to 9 days in April. It is estimated that output in Texas will decline about 4 percent, and a scheduled reduction in southeastern New Mexico allowables should reduce production by 3 percent in that area. Crude oil output in Louisiana during April is scheduled for a slight increase. NONAGRICULTURAL EMPLOYMENT Five Southwestern States I Percent chang e Feb. 1960 from Numb er of p erson s Feb rua ry January February 1960e Type of employment 1960 1959r Jan. 1960 Feb. 1959 4,347,400 777, 100 3,570,300 248,700 284,100 4,24 6,900 758,800 3,488,100 253,500 298,900 0.2 -.1 .2 .8 2.1 2.5 2.3 2.6 - 1.1 - 3.0 405,600 1,078,600 194,500 530,300 828,500 395,600 1,028,400 188,200 513,800 809,700 - .1 - .7 .4 .5 .6 2.5 4.1 3.8 3.7 2.9 Total nona g ricultural 4,354,600 776,500 Nonmonufocturing • . . . .. .. 3,57 8,100 Mining . .. ... ... .. . .. . 250,800 Construction . ••....•. .. 290,000 wag e and salary workers .• Manufacturing . •... . .... . Tran sportation and public 405,300 utiliti es . . • • • .. .. ••.. Trad e •. . . . . . . .. .... . . 1,070,900 Finance •.• . ..... .. •. . . 195,300 Servic e • .......• • .•.. . 532,700 Governm ent • . . .. .. .... 833,100 1 Ari zona, Louisiana, Ne w Me xico, Oklahoma, and T axes. Estimated. r - R ised. ev SOURCES, Stato employme nt age ncies. 0- Fede ral Rese rve Bank of Dalla s. INDUSTRIAL PRODUCTION (Seasonall y adiusted indexos , 1947-49 = 100 ) Fe bruary Are a and typ e of ind ex Janua ry Decemb er 1960p Fe bruary 1960 1959 1959 173 2 10 247 194 137 172 213 249 196 133 171r 209r 241r 195 135r 167 198 237 180 137 167 167 179 158 126 283 168 168 181 159 128 280 165 164 174r 158 129 277 155r 153r 160r 150r 126r 259 TEXAS Total industrial production .. . . Total monufactures . . • ..... . Durabl e monufactur es . . . . ... Nondurable manufacture s.. . . Mining ........ ... ..... • . . UNITED STATES Total industrial production . . .. Total manufactures . ... ... .. Durabl e manufactures . . ..... Nondurabl e manufa ctures . . .. Mining •. . . ......... .. .. . . Utilities •.. . . . . . . . .... . .... p - Prelim inary . r - Rovlsed. SOURCES, Board of Gove rnors of th e Federal Reserve Syste m. Federal Reserve Bank of Dallas. Unemployment in Texas increased less than seasonally during February to about 5.3 percent of the labor force. The number of initial and continuing claims for unemployment insurance benefits in the State rose slightly from mid-January to mid-February. Total nonfarm employment in the five District states increased contraseasonally during FebruThe total value of construction contracts awarded in ary to 4,354,600, which is 7,200 the five southwestern states during January increased 3 above the January level and is percent over December 1959 but was still 13 percent 107,700 above a year ago. Construction, mining, gov- lower than a year ago. Residential awards fell to 30 perernment, and services accounted for the largest month- cent below the January 1959 level, while "all other" to-month gains in February. However, employment in contract awards showed continued strength, rising 7 construction and mining was still slightly below a year percent above a month earlier and 6 percent above a earlier. The recent increase of 3,200 workers in mining year earlier. reflected the settlement of a labor-management dispute The seasonally adjusted index of Texas industrial ~n the Arizona copper industry. Other nonmanufacturproduction in February increased 1 point from the lng activities - trade, finance, services, government, and transportation - showed considerable improve- revised January figure of 172 to a level of 173, comtnent over the February 1959 levels in spite of the fact pared with 167 for the same month in 1959. The adthat trade reflected some seasonal decline in employ- vance in mining activity was the major factor accounting for the rise. tnent. BUSINESS REVIEW' 4:1960 BANK DEBITS, END-Of-MONTH DEPOSITS AND ANNUAL RATE Of TURNOVER Of DEPOSITS CONDITION STATISTICS Of ALL MEMBER BANKS (Dollar amounts in thousands) (In millions of dollars)' E)eventh Federal Reserve District '. Demand deposits' Debits to demand deposit accounts! Item Percent change from Jan. Feb. 1960 1959 February 1960 Area ARIZONA Tucson ••••..•....... $ 233,061 LOUISIANA 78,614 Monroe •• • •••.. • • . •• 318,414 Shreveport • ......... NEW MEXICO 37,107 Roswell .•....... . ... TEXAS 93,314 Abilene ••.. . .• .•.. . • 214,542 Amarillo .......•...• 214,392 Austin • ••• .•...•.. .. 161,156 Beaumont • ••••.•.••• 179,176 Corpus Christl •....... 15,901 Corsicana •••. ......• Dallas . •••.......... 2,653,559 338,304 EI Paso . . ... ........ 737,008 Fort Worth .......... 91,589 Galveston • •••....... 2,530,976 Houston •••••••••••• 27,319 laredo •............ 215,204 Lubbock . •..... ..... 59,414 Port Arthur •. .... .... 50,586 San Angelo .......•. 578,727 Son Antonio •........ 20,524 Texarkana :! •.•.... ' . • 82,029 Tyler •••.• .... ..•... 100,746 Waco ••..... ... . ... 111,406 Wichita Falls •. .' .. . .. Feb. Feb. Jon. 1960 1960 1959 Feb. 29, 1960 -4 11 $ 144,027 19.2 19.1 20.3 -8 -7 16 13 53,678 195,704 17.5 19.4 18.4 20.4 15.7 18.6 -9 15 31,882 14.0 15.2 12.2 - 6 -1 -6 1 -12 -17 -14 - 3 -7 1 0 -11 -28 -11 -4 -4 -11 -5 -9 -12 0 10 14 13 3 6 15 ·3 3 14 9 11 23 10 6 11 2 1 7 7 62,586 113,768 143,745 98,143 110,262 19,384 1,133,179 178,113 364,317 65,419 1,265,097 23,318 120,731 43,648 46,333 366,0 16 16,333 58,927 67,211 101,028 17.6 22.2 18.2 19.3 19.4 9.7 28.1 23.3 24.4 16.7 23.8 14.3 20.5 16.1 13.1 19.0 15.0 16.4 17.9 13.0 18.5 21.8 17.8 18.1 21.4 11.3 31.0 24.5 25.7 16.8 23.3 16.2 27.0 17.6 13.6 19.6 16.7 16.7 19.0 13.0 17.4 19.8 15.1 16.0 18.1 8.6 24.1 22.2 22.9 15.1 22.1 13.7 16.7 14.3 12.6 16.2 14.0 15.8 15.8 11.5 Total-24 cities • .. ..... $ 9,143,068 I Annual rate of turnover -7 Fe b. 24, 1960 Jan. 27, 1960 Feb. 25, 1959 ASSETS loans and discounts ••••.•• • •..• • •••• •• •• United States Gove rnment obligations .••• • • Other securities •••• • •.• ••••••••••• • ••• • Reserves with Federal Reserve Bank • • •••••• Cosh in vault e ••••••••••••••••••••••• •• Balances with banks in the United States •••• Balances with banks In foreign countries c ... . Cash items In process of collection •• • •••.•• Other ass ets C •••••• •••••• • • • •• ••••• • •• • 4,758 2,502 862 842 144 935 2 527 322 4,738 2,548 862 920 150 1,005 2 507 340 4,575 2,720 842 930 142 1,012 2 479 267 TOTAL ASSETse •• • • ...••• . .....•...• 10 $4,822,849 23.8 22.7 10,894 11,072 10,969 LIABILITIES AND CAPITAL ACCOUNTS Demand deposits 01 banks .. ..•.. . . . . .. .. Other demand deposits ••••....••. • .. . ... Time deposits ••••.... . ...• ••• ..... . •.•• 998 6,569 2,139 1,094 6,642 2,145 1,0 46 6,777 2, 128 Total deposits ..••......... . ..•.•.... Borrowings c •.•• •••..• •••• •• •.•••• ••• •• Other liabllities e . . . ............... ..... Total capitol accounts e .......... .. .. ... . 9,706 99 170 919 9,881 101 175 915 9,951 27 113 878 TOTAL LIABILITIES AND CAPITAL ACCOUNTSe . . ...•.... ... •.. . ....• 10,894 11,072 10,969 e- Estimated. GROSS DEMAND AND TIME DEPOS ITS Of MEMBER BANKS Eleve nth Federal Reserve District (Ave rag es of daily flguros. In mi llion. 01 dollars) 20.4 GROSS DEMAND DEPOSITS Deposits of individuals, partnerships, and corporations and of stotes and political subdivisions. !! The se figures include only two banks in Texarkana, Texas. Total debits for all banles in Texarkana, Texos. Arkan sa s • .including on e bank located in the Eighth District) amounted to $42 ,806,000 for th e 'month of February 1960. Date 1958, February .. 1959, February •. Octob er . .• November. Dece mb er. • 1960, January ... February •• VALUE OF CONSTRUCTION CONTRACTS AWARDED (In thousands of dollars) Area and typ e January 1960 Decemb e r 1959 259,687 111,905 147,782 2,192,949 926,966 1,265,983 252,14'5 113,537 138,608 2,224,060 993,185 1,230,875 299,277 159,961 139,3 16 2,319,167 1,021,5 16 1,297,65 1 Total Reserve city banks 7,297 7,858 7,782 7,919 8,052 8,084 7,620 3,481 3,808 3,820 3,823 3,904 3,912 3,640 = TIME DEPOSITS Country banks Reserve city banks Total 3,816 4,050 3,962 4,096 4,148 4,172 3,980 1,729 2,117 2,099 2,100 2,099 2,111 2,145 915 1,119 1,078 1,077 1,077 1,081 1,089 Country banks 814 998 1,02 1 1,023 1,022 1,030 1,056 Ja .. uary 1959 FIVE SOUTHWESTERN STATES'. Residential .•••••..••••••.. All other ••.............•.• UNITED STATES .•............ Residential. •.. .•••.••..... All other ••..... ..... .. ... . --- Arizona, 'Louisiana, New Mexico, Oklahoma , and Texa s. SOURCE, F. W. Dodge Corporation. BU ILDING PERMITS ============================= VALUATION (Dollar amounts in thousan d s) -------------------------------------Percent change ___ 1 2 months, Feb. 2 mos. Feb. 2 mos. Jan. Feb. 1960 Irom ~~~A~re_________6 _____ 60 __~1~9~60~__~~ ~~ a 19 _0 1 9_~ 1 96~0 1~9~6~0~ 1~9~59~__~1~9~5~9 ___ DAILY AVERAGE PRODUCTION OF CRUDE OIL (In thousands of barrels)" Change from Area February 1960' January 1960' February 1959' January 1960 February 1959 ELEVENTH DiSTRiCT .. • ... . . Texas • •..•.••.. • ••• • ·· • Gulf Coast •....• .... . . West Texas •••••••.... East Texas (proper) . . . . . Panhandle .•... , .... . . Rest of State ..•....... Southeastern New Mexico •. Northern louisiana ••••.•.• OUTSIDE ELEVENTH DISTRICT. UN ITED STATES • . .•... •. . . . 3,161.4 2,783.3 519.6 1,272.9 146.7 109.4 734.7 263.4 114.7 4,133.3 7,294.7 3,042.3 2,670.2 498.9 1,208.7 142.2 109.3 711.1 258.9 113.2 4,110.8 7,153.1 3,250.7 2,882.0 550.7 1,291.3 161.9 108.0 770.1 253.2 115.5 3,943.1 7,193.8 3.9 4.2 4.1 5.3 3.2 .1 3.3 1.7 1.3 .5 1.9 -2.8 -3.4 -5.7 -1.4 -9.4 1.3 -4.6 4.0 -.7 4.8 1.4 SOU'RCES, 1 2 Estimated from Amoriean Petrole um Institute weekly reports. United States Bure au of Mines. BtlSINESS 12 REVIEW 4:1960 Feb. 1960 from NUMBER ARIZONA Tucson •••• . ••• 732 LOUISIANA Shreveport •••• 439 TEXAS Abilene ...... . 168 Amarillo ..... . 256 Austin ..••.••• 243 Beaumont ••.•. 214 Corpus Christi .. 64 Dallas •. . ..... 1,603 EI Paso . ..... . 532 Fort Worth .•.. 613 Galveston • • ••• 85 Houston ••••.. 943 Lubbock ..... . 233 Port Arthur ••.• 118 San Antonio .•. 1,126 Waco .•.. ••.. 248 Wichita Falls •• 185 Total-17 cities •. 7,802 1,324 $ 4,170 7,392 29 216 205 967 1,651 3,792 -23 -48 -27 319 423 470 410 122 2,906 904 1,151 149 2,005 488 246 2,005 431 394 1,910 2,75 1 3,226 759 863 11 ,316 3,447 3,475 187 16,4 11 3,344 1,763 5,166 797 884 3,111 5,592 5,997 1,328 1,918 23,115 5,616 6,748 279 33,460 7,402 2,854 8,229 2,663 2,556 59 -3 16 33 -18 -4 59 6 103 -4 - 18 62 69 -57 -47 -25 24 -37 -45 -43 -21 -28 -20 -23 10 -49 159 11 -20 1 -37 -28 -36 -50 -43 -13 -39 14,714 $62,120 $122,052 4 -11 -12 $ -9 -42 _1 -26 147 -13 5 22 ------------------------------------------------------