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

------------------------------------------------------