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BUSINESS
REVIEW
APRIL 1961
Vol. 46, No. 4

1960 FINANCIAL DEVELOPMENTS
IN THE SOUTHWEST
For member banks in the Eleventh Federal Reserve District,
1960 was another record year, with profits substantially higher
than in 1959. Influences of the national economic and financial
situation were perhaps more significant than local developments
in 1960, but special factors in the southwestern economy were
also important to District banking activity. The 1960 financial
environment included a decline in interest rates early in the
year, reduced security yields, and considerable congestion in
the corporate and municipal bond markets. With reserves substantially more plentiful in the latter part of the year, stemming
from both an easier monetary policy and a rising level of deposits, the District member banks were able to accommodate a
6-percent increase in loans and a nearly 7-percent increase in
cash accounts while adding slightly to investments. In consequence, profits of the District's member banks rose sharply, and
further additions to capital accounts were made during the year.
Major Developments During 1960

The national economic and financial picture for the year was
dominated by five principal developments. First, despite a strongly
optimistic outlook in the early part of 1960, a downturn in business activity commenced at midyear. The decline was relatively
mild but serious, as a massive shift in inventory policies caused
curtailments in production and employment. Influenced by a
rising level of unused capacity and narrowing profit margins,
businesses began to reduce capital expenditures, thereby accentuating the developing decline in business orders and sales. More-

RESERVE
DALLAS,

BANK
TEXAS

OF

DALLAS

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

over, with residential construction failing to provide its
usual countercyclical support, total construction moved
somewhat lower during 1960. One particularly disturbing aspect of the recession has been the rate of unemployment, which started from a higher level than in any
other postwar recession. Under the impact of this rising
level of unemployment and influenced by other conditions in the economic and financial markets, consumer
spending declined as consumers became more cautious,
particularly with respect to purchases of durable goods.
A second in1portant development was the virtual disappearance of inflationary psychology. With goods
and services abundantly available in the market and
with inventories at new record levels, consumer and
business decisions were, for the first time in more
than 5 years, based upon the presumption of virtually
stable prices. While not statistically verifiable, this
change in attitude may have been one of the most
important developments of the entire year.
A third change of considerable significance to the
over-all pattern was the shift in the budget position of
the Federal Government. In calendar year 1960, there
was a slight reduction in the public debt, whereas a
deficit of $8 billion had occurred in 1959. This shift
relieved much of the pressure from the credit markets
during the year and was probably a major factor in
the decline in inflationary expectations.
A fourth development of the year, and one which
had more than usual influence upon decisions in monetary and fiscal matters, was the very sizable outflow of
gold from the United States in the last 6 months of 1960.
For the year as a whole, the outflow of gold amounted
to almost $2 billion, with all but $142 million of the
loss occurring after June 30. However, as a result
of a $300 million sale of gold to the United States by
the International Monetary Fund, the net decline in
total gold stock was $1. 7 billion. The increase in
short-term claims due foreigners, which permitted this
movement of gold, was a product of several factors .
A long-term deficit in the United States balance of
payments - originating in the high levels of foreign
and military aid, capital investments, and tourist expenditures - has consistently outweighed the Nation's
favorable merchandise trade balance and resulted in
the steady build-up of short-term foreign balances. In
1960, there was yet another important cause of the
gold outflow. Interest rates declined in the United
States, because of the slowdown in business and the
reversal in monetary policy, but remained high in
Western Europe, where economic activity was boom-

I

BUSINESS REVIEW

4 :196 1

ing. As a result, there was a substantial outflow of
short-term funds seeking investment at the higher
interest rates in Europe. In addition, there was probably some temporary weakening of confidence in the
dollar, which was reflected in speculation that a devaluation was imminent.
Finally, a pronounced shift in monetary policy, as the
Federal Reserve moved to accommodate the changing
economic and financial conditions, had a significant impact on the money and credit markets of the Nation.
Monetary policy, which had been restrictive during
1959 because of heavy credit demands and an expanding level of business activity, eased in 1960. The
monetary authorities, however, were faced with a
particularly difficult problem in view of the gold outflow associated with the disparity in interest rates
between the United States and Western Europe. Monetary policy was placed in the position of attempting
to supply adequate reserves to the banking system to
create an environment conducive to economic recovery
while, at the same time, keeping short-term interest
rates from falling to unduly low levels, which would
have widened the differential in interest rates and accelerated the outflow of gold.
Early in 1960, the System moved to bolster the
economy by allowing market forces to ease bank
reserve positions. By April, however, the System,
through open market operations, became a net supplier
of reserves and continued in this posture throughout
1960 except in September and December, when market factors and changes in reserve requirements created an adequate supply of bank reserves.
Overt moves by the System during 1960 included
reduction of the discount rate from 4 percent to 3 1 2
/
percent in early June. On July 28, margin requirements for stock purchases were decreased from 90
percent to 70 percent. In late August, a 'second reduction lowered the discount rate from 3lh percent to
3 percent. Moreover, beginning in August and September, banks were permitted to count an additiona1 part
of their vault cash in meeting reserve requirements . On
September 1, reserve requirements of central reserve
city banks were lowered from 18 percent of demand deposits to 17 1/2 percent. Later in the year, all vault
cash was allowed toward required reserves; but, as a
partial offset, reserve requirements of country bankS
were raised from 11 percent to 12 percent on November
24. On December 1, reserve requirements for central
reserve city banks were further reduced to 16 112 percent.
The effect of these actions, together with developments

in the market, resulted in a movement from net borrowed reserves of $361 mjJlion in January 1960 to
free reserves of $682 million in December.
The money supply of the country (seasonally adjusted) declined in early 1960 but increased in the
latter part of the year to a level $1 billion below a
year ago. On the other hand, the turnover of demand
deposits increased, and savings rose markedly. The
Nation's commercial banks ended 1960 in a better
~iquidity position in spite of an increase in loans and
Investments.
Total credit demands in the Nation were markedly
reduced in 1960. Consumer credit, mortgage credit,
and credit demands of the United States Government
all declined. On the other hand, all types of financial
institutions experienced sharp increases in savings.
Thus, while the supply of funds available to the capital
markets was greater, demand was substantially reduced.
Regional Economic and Financial Considerations

In addition to the above developments on a national
basis, several important considerations at the regional
or district level influenced the changes in District
banking conditions. The differences between the economies of the Southwest and the Nation, combined
with the relatively smaller magnitude of fluctuations
in the southwestern economy during the previous 2
Years, were partly responsible for these special considerations. The petroleum industry, so important to
the Southwest, experienced offsetting movements;
Crude oil production and drilling activity declined 5
percent and 17 percent, respectively, but refinery
activity advanced 3 percent. The natural gas industry
expanded its operations moderately.
. There was further improvement in the manufactur~ng phase of the District economy. Thus, the Texas
Industrial production index, advancing 2 percent,
~howed a slightly lower rate of gain than the national
Index during 1960 but much greater stability and
closed the year at virtually the same level as a year
before. Important to this manufacturing improvement
were the gains in 'apparel, paper and printing, and
food industries. On the other hand, defense-related
industries and lumber and furniture manufacturing declined from the 1959 levels.
The construction industry showed virtually the
same pattern in the District states as in the Nation.
The total value of construction contracts in the five
states in 1960 declined 4 percent, as an 18-percent
reduction in residential contracts was partially offset

by a substantial increase in industrial and commercial
construction.
Employment in the five District states in 1960
showed only a minor gain from a year earlier, accounted for mainly by the service, finance, and government categories. Personal income advanced at only
half the rate of the Nation's gain. Consumer buying in
the Southwest was slightly below the 1959 level,
largely as a result of declines in sales at automotive
establishments and furniture and appliance stores.
Agricultural production in the District expanded
noticeably, with both crops and numbers of cattle and
sheep marketed considerably higher than in 1959.
However, reduced prices for these agricultural products
more than offset the larger production; therefore, cash
receipts from farm marketings declined slightly from
a year before.
The District financial developments were also similar to the national pattern, with the changes in the
United States Government's fiscal position reflected in
the reduced highway and defense expenditures in the
Southwest. The growth in consumer credit slowed as
sales of automobiles decreased. Moreover, mortgage
credit demands were substantially reduced from a year
earlier because of the decline in residential construction. On the other hand, reflecting the sharp rise in
District savings, time deposits of member banks
advanced sharply, as did shares at savings and loan
associations. Moreover, net redemptions of savings
bonds narrowed considerably during the year, and
investments in municipal and corporate securities
advanced. Thus, in the District, as in the Nation ,
there was a larger supply of loanable funds to meet a
lower level of credit demands.
Loan Demand

Total loans at all commercial banks in the Nation
rose approximately 7 percent in 1960, or only about
half the rate of expansion recorded in 1959. Moreover, on a seasonally adjusted basis, most of the
1960 growth in loans occurred in the first 6 months
of the year as the slowdown in business after midyear
reflected itself in reduced loan demand. Consumertype loans, business loans, and farm loans showed
the largest relative gains. Smaller gains were recorded
in other types of loans, but loans to nonbank financial
institutions were slightly reduced.
In the Eleventh District, total loans at all member
banks rose more than 6 percent during 1960. In contrast to developments in the Nation, the loan expanBUSINESS REVIEW

4:1961

I

31

sion was somewhat greater in 1960 than in the previous year, reflecting the difference in the economic
base of the southwestern economy and the milder
upswing in the District during 1959. The most significant loan expansion at the District member banks
last year occurred in commercial and industrial loans,
which increased $141 million, or 6 percent; in loans
for purchasing or carrying securities, which rose $74
million, or 28 percent; and in consumer-type loans,
which advanced $70 million, or 6 percent. A detailed
examination of commercial and industrial loans at
the District weekly reporting member banks indicates
that loans to public utilities increased almost 50 percent during 1960, loans to transportation manufacturers expanded 27 percent, and loans in the "all
other manufacturing" category rose 12 percent.
As a result of the large inventories of steel relative
to demand, steel firms operated considerably below
capacity in the last three quarters of 1960. This fact
was reflected, especially as inventory liquidation developed, in a marked reduction in loans by the District member banks to firms manufacturing metal and
metal products. Inventory reductions were also important in the petroleum industry; the substantial
liquidation of crude oil and refined product stocks
possibly explains some of the decline in bank loans
to manufacturers in the petroleum, coal, chemicals,
and rubber industries.
The 1960 expansion in loans to public utilities
indicates the continued growth of both electric and
gas utilities as further extensions of services to suburMEMBER BANK LOANS.
INVESTMENTS. AND DEPOSITS
ELEVENTH
( Ai

FEDERAL RESERVE DISTRICT

of to" Wed nesd ay of mon l h )

BILLIO N S OF DOL L AR S

BI LLIO N S

5. 5

OF DOLLA R S

5 . 0 . ... __ ..

5.5
5.0

~

4. 5 1 - - - - - - - t - - - - - - - - - I 4.5
3.0

1 - - - - - - - - - l - - - - - - - - - 1 3.0
RE SERVE

I.

CITY BANK LOAN ~

5 b-- - - - - - - t - - - - --=::--:.......=l

I.

5

I

RESERVE

CIT Y BANK INVESTMENTS

I. 0 1 - - -"' 5"9- - - ' - - - - - - '"9 -;:-; ;--- - - - ' I. 0
19:<"
1 60

I

BUSINESS REVIEW

4: 1961

ban areas and a secular increase in per capita consumption made larger capital expenditures necessary.
It seems probable that the substantial increase in loans
to transportation manufacturers during 1960 may have
been largely accounted for by firms engaged in the
manufacture of pleasure boats.
The growth in loans for purchasing or carrying
securities was almost entirely the result of new loans
to brokers and dealers. The very substantial growth
in these loans probably reflected increased participation by District banks in financing the large inventories carried during 1960 by dealers in United States
Government securities. Of particular importance in
this respect has been the growing tendency toward the
utilization of Federal funds sales to dealers as a means
of financing inventories, although there has also been
an extension of the move to provide some financing
through overnight loans by corporations.
Almost one-half of the expansion in consumer-type
loans at the District banks resulted from an increase
in loans to individuals for automobile purchases. In
addition, other instalment loans and single-payment
loans moved to higher levels.
A comparison of the loan growth at reserve city
banks and country banks indicates that reserve city
banks in the District increased total loans by $140
million, or 5 percent, while country banks showed a
$164 million, or 7 -percent, rise. Loan expansion at
the reserve city banks was centered in commercial and
industrial loans and loans to brokers and dealers for
purchasing or carrying securities. The exceptionally
sharp increase in loans for purchasing or carrying
securities that occurred after midyear was primarily
responsible for the relatively large expansion in total
loans at reserve city banks. Country banks, on the
other hand, showed almost no gain in security loans
but noticeably expanded commercial and industrial,
agricultural, and consumer-type loans.
Investments

Total investments at all commercial banks in' the
Nation rose $2.7 billion during 1960, with liquidation
of $5.4 billion in the first half of the year being more
than offset by accumulation of $8.1 billion in the last
6 months. There was a noticeable interest in shorterterm maturities as the yield spread narrowed.
In the District, total investments of all member
banks rose $32 million, or less than 1 percent. Increases in holdings of United States Government obIi-

gations, direct and guaranteed, and obligations of
states and political subdivisions were only partially
offset by decreases in holdings of other securities.
These developments are in contrast with the situation
in 1959, when the District banks liquidated 6 percent
of their direct holdings of Treasury obligations, and
reflect the change in the business and financial envirOnment. Reserves were under some pressure throughout 1959, and the banks were forced to liquidate
a portion of their investments in order to meet loan
demands. This trend continued through the first half
of 1960; but, in the latter half of the year, as reserves
expanded, the banks were able to enlarge their investments considerably.
The expansion in District member bank holdings of
United States Government obligations last year resulted primarily from increases of $144 million in
Treasury notes, $59 million in FHA debentures, and
$5 million in Treasury bills. Partially offsetting these
gains were decreases of $93 million in United States
~overnment bonds maturing in 5 to 10 years, $72 milh~n in United States Government bonds maturing
~Jthin 5 years, $8 million in Treasury certificates of
llldebtedness, and $7 million in United States Government bonds maturing in 10 to 20 years. Thus, as they
added to their holdings of Government securities, the
banks also altered the maturity structure of these
~oldings. There appears to have been a general shift~ng of funds out of bonds maturing in 5 to 20 years
Into obligations maturing within 5 years.
Both reserve city banks and country banks showed

~his general shifting in the maturity structure of their

lUVestment portfolios. However, while the country
banks reduced their holdings of Treasury bills, the
reserve city banks enlarged their bill position. The net
result of these shifts has been a more liquid investment
Portfolio for the District member banks.
Reserves and Borrowings

The reserve positions of member banks in the District improved during 1960, with both reserve city
banks and country banks showing gains. The figures
for all District member banks combined showed net
~orrowed reserves through March 1960 but substantlal free reserves the remainder of the year. However,
these free reserves were found exclusively at country
banks until August, when, for the first month in more
than a year, the reserve city banks had free reserves.
The reserve city banks again showed slight net borrOwed reserves in September but maintained free re-

MEMBER BANK RESERV
ES
ELEVENTH FEDERAL RESERVE DISTRICT
MILL. I ON S OF DOL LARS

( Ave rllO" 01 d ally flouru )

MI L. L IO NS OF DOL.LARS

+100

+100

+80 ~------------4- j , - - - - - - - - - - -

+ 60 f - - - - - - - - -

+ 60

+40 f - - - - J

+40

\
o

+20

....-.. ...
~

\

. :,
'-

.

:"--FREE

o
RESERVES

: - - - - - - - - - - - 1 - 20

- 20 f - - - - - - - - - - - + \ -

..

-40 L---~ 57---L---~177~--~ -40
19~ 9
96O

serves the rest of the year. Some measure of the
extent to which reserves were improved is indicated
by the fact that reserve city banks had average net
borrowed reserves of about $63 million in January
but free reserves averaging approximately $5 million
in August and about $10 million in December. Country banks had average free reserves of $46 million in
January and $76 million in December. The developments in 1960 are in sharp contrast with those in
1959, when reserve positions were under pressure
throughout the year.
Borrowings from the Federal Reserve Bank of
Dallas were reduced sharply by reserve city banks
during 1960, while borrowings by country banks declined more moderately. By the end of the year, borrowings were limited to the seasonal needs of country banks.
It seems clear from the information on District
reserve positions that the lower rate of loan growth
in the latter part of 1960 did not result from any
pressure on reserve positions. Rather, a strong demand
for bank loans simply was not present. Should demand
develop in the future, however, most District banks are
in an improved position to accommodate borrowers.
Deposits

In the Nation, total demand deposits showed a decline of 1 percent during 1960, contrasted with an
increase of the same magnitude in 1959. On the other
hand, time deposits at all commercial banks rose substantially in 1960, primarily as a result of increased
deposits by individuals, partnerships, and corporations.
BUSI NE SS REV I EW
4:1 96 1

I

51

At District member banks last year, total demand
deposits expanded somewhat less than 2 percent, after
showing virtually no change during 1959. Total time
deposits rose almost 20 percent during 1960, as every
deposit category except deposits of foreign banks
moved to a higher level. Time deposits of individuals,
partnerships, and corporations accounted for more
than one-half of the dollar increase and advanced 14
percent. During 1959, total time deposits rose only
1 percent.
The trends in District demand and time deposits
reflected the economic developments associated with
the 2 years. In 1959, a business expansion and restrictive credit policies allowed only a slight increase in
deposits. In 1960, there was a mild downturn in the
economy, and an easier monetary policy prevailed.
As a result, demand deposits increased somewhat
more than in 1959, while time deposits moved to a
markedly higher level.
At the reporting member banks in leading District
cities, the annual rate of deposit turnover during 1960
was 23 .8, up from 22.7 in 1959. Although deposit
turnover could be expected to rise in a tight money
period such as 1959, it may not be readily apparent
why deposit turnover rose in 1960. The increased
deposit turnover in 1960 can probably be largely attributed to the fact that, because reserve city banks
were under some reserve pressure until midyear, the
turnover rate during early 1960 was higher than in the
same period in 1959. In addition, there has been evidence in the last few years of a movement toward
more efficient utilization of demand deposit balances.
The reserve city banks in the District experienced
greater relative deposit growth in 1960; their total
deposits expanded 8 percent, and those of country
banks, only 2 percent. At both reserve city banks and
country banks, time deposits of individuals, partnerships, and corporations moved up sharply in 1960; but
demand deposits of these depositors were noticeably
lower at the country banks.
Earnings and Expenses

Total earnings from current operations at District
member banks were 8 percent above 1959, and total
current operating expenses rose 7 percent during
1960. The net effect of the movements in these two
variables was a 9-percent rise in net earnings from current operations. Every earnings classification reached
a higher level, but the most important gains occurred
in interest and discounts on loans, which advanced

I

BUS I NESS REVIEW

4 :1961

SELECTED BALANCE SHEET ACCOUNTS OF MEMBER BANKS
1960 AND 1959

Eleventh Federal Reserve District
In thousands of dollars
Item
Loans (g ross) ..................
Investments •••• •••• .•• • •••••.••
Cash and bank balances •••••••••
Demond deposits ••...••• • •....•
Time deposits • •••••• • •...••••• •

Capital accounts •• • •••••• . •• • ••
Net proRts ••••• • • • ...•••• • ••. .
p-

Percent

Dec. 31,
1960p

Dec. 31,
1959

Increase

increase

5,252,663
3,501,842
3,357,949
8,694,292
2,521,617
973,457
88,889

4,949,498
3,469,554
3,145,330
8,555,686
2,114,299
909,042
70,630

303,165
32,288
212,619
138,606
407,318
64,415
18,259

6.1
.9
6.8
1.6
19.3
7.1
26.0

Preliminary.

$24 million (or 9 percent), and in. interest and dividends on securities, which increased $6 million (or
7 percent). However, the growth in net earnings from
current operations during 1960 was considerably below the 14-percent expansion in 1959.
During 1960, total recoveries, transfers from valuation reserves, and profits on securities at the member
banks were up 13 percent; but total losses, charge-offs,
and transfers to valuation reserves declined 27 percent.
These changes reflect the shift in portfolio positions of
the banks, especially the reserve city banks. The primary cause of the improved net profit position of the
member banks was the change in the handling of
charge-offs. Net profits after taxes in 1960 showed a
growth of $18 million for a substantial 26-percent improvement - in contrast with a 7 -percent reduction in
1959. Total capital accounts increased, and the capital-deposit ratio rose slightly from 8.5 percent on
December 31, 1959, to 8.7 percent on December 31,
1960. The ratio of loans to total deposits for all member banks in the District advanced slightly from 45.5
percent in 1959 to 45.9 percent in 1960, with the
ratio moving up almost 2 percent at country banks
but declining over 1 percent at reserve city banks.
Summary

Considering the slowdown in business during 1960,
the District member banks fared very well. Reserve
positions eased markedly, especially after midyear,
and the banks increased their liquidity by shortening
the average maturity of their investment portfolios.
Total bank credit expanded as loans and investments
moved to higher levels; ·and cash accounts showed a
sharp rise, in contrast with a decline in 1959. Member bank earnings improved substantially, with earnings from both loans and investments noticeablY
higher.
WILLIAM

N. GRIGGS

Financial Economist

BUSINESS

REVIEW

BUSINESS, AGRICULTURAL, AND FINANCIAL CONDITIONS

Retail sales at Eleventh District
department stores in February
were approximately 1 percent
below February 1960, primarily
because there was one less business day in the month this year. The February sales
index, after adjustment for differences in trading
days and other seasonal factors, was 168 percent
of the 1947-49 average, compared with 165 for
January and 163 for February last year.
Agricultural activity in the District increased sharply during March as temperatures moderated and
soils dried. A considerable acreage of cotton, corn,
and peanuts has been seeded in early areas; and
rnost small grains are making good growth. Forage
supplies are increasing rapidly in response to wOl'mer weather and are furnishing lush grazing.
Daily average crude oil production in the District
increased only fractionally in February but rose significantly in early March. The Texas allowable production schedule has been reduced to 9 days for
April. Crude oil runs to stills advanced moderately
in February; however, in the first half of March,
refinery activity was curtailed. Demand for refined

-

Department store sales in the
Eleventh Federal Reserve District in February were approximately 1 percent below the
volume reported for February
1960. The decline from the year-earlier total was
tnore than accounted for by one less business day in
the month this year. On a daily average basis, February sales in 1961 were moderately above those in
February 1960. The February adjusted index, which
lllakes allowances for differences in trading days and
other seasonal factors, was 168 percent of the 194749 average, compared with 165 for January and 163
for February last year. The index changes reflected
a less than seasonal decline from January to February
and a 3-percent gain in adjusted sales over a year ago.

products declined seasonally during February but
more than seasonally in early March.
In the 4 weeks ended March 15, the District's
weekly reporting member banks showed an increase
in loans but a decrease in investments. While demand and time deposits moved to higher levels,
the growth in time deposits was the smallest in 8
months. Reserves of the District member banks declined during February but remained at a comfortable level.
The Texas industrial production index declined in
February because of reductions in mining activity
and the output of nondurable goods. The output of
durable goods held steady. Nonfarm employment
in the District states decreased at a slower rate during February as improvements were noted in several
sectors. Unemployment continued to increase in
Texas, reaching 6.7 percent of the State's total labor
force.
The value of construction contracts in the District states rose sharply during January. Residential
building and public works accounted for major
gains, while nonresidential building activity declined
only slightly.

In the Eleventh District, the tempo of consumer
demand at department stores usually picks up around
mid-February from the low point reached in late January or early February to begin a continuous rise into
DEPARTMENT STORE SALES
(Preliminary percentage change In retail value)'
February 1961 from
January

Area
Total Eleventh District. • • • • • • ••
Corpus Christl...... . . . .......
Dallas..... ............. ••..
EI Paso..... ........... . ....
Fort Worth.............. ....
Houston. • • • .. • • • • • • . • • • • • . •
San Antonio.................
Shreveport, La.. • • • . . . • • • • • ..
Waco............ .. ........
Other cities. • • • • • • • • . • • • • • ..

1961

February
1960

-7
-1
-6
1
-4
-16
-11
-10
-4
0

-1

-9

o

-8

o
-s
2
-1
2
4

2 months,
1961 from
1960

-3

-8
-3

-10

-s

-2

1

-2

1

1

BUSINESS REVIEWI
4:1961

71

INDEXES OF DEPARTMENT STORE SALES AND STOCKS
Eleventh Federal Reserve District
(1947-49

= 100)

SALES (Daily average)
Date

Unadjusted

1960: February ___ • • •
December. • • • • •
1961: January.......
February. • • • • •

Seasonally
adjusted

163r
171
165
168p

122
293
130
126p

STOCKS (End of month)
Seasonally

Unadjusted
175
169
160
169p

adjusted

Grande Valley have been irrigating in order to promote seed germination and plant growth. In the TransPecos area, cotton growers are applying preplanting
irrigations. With fields dry enough for plowing, tractors have operated around the clock along the upper
coastal sections.

180
182
181
174p

Cotton planting in Texas is about 2 weeks earlier
than last year's very late plantings. Virtually all of the
intended acreage has been seeded in the Lower Valley,
r - Re vis ed.
p - Preliminary.
and a few fields have received their first cultivation.
More than one-third of the south-central Texas cotton
the heavy spring buying season. In accordance with acreage has been seeded, and some plants just south of
this pattern, sales at District department stores in- San Antonio are up to a stand. About one-half of the
creased in the latter half of February. From February State's corn crop has been planted, and sorghum drill11 through March 18, the sales volume rose each ing is approximately one-fifth complete. Much of the
week from the one before and from the comparable early south Texas peanut crop has been planted, and
week in 1960. Cumulative weekly sales for the year
some fields are up to a stand.
through March 18 were 2 percent above the correWheat has continued to make satisfactory growth in
sponding weeks in 1960.
the. High Plains, and the mid-March snow improved
It is expected that the week-to-week and year-tomOIsture supplies in much of the area. Oats have
year gains in District department store sales will
made rapid growth and are beginning to joint in the
continue through Easter week. Because of the earlier
Blacklands and Cross Timbers sections. Green bugs
date of Easter this year (April 2), it is possible that
have built up in many wheat and oat fields, and
March sales may be at or above the record volume
farmers have been spraying for these pests.
set for that month in 1959, when Easter fell on March
29. However, in analyzing the performance of March
Early and midseason orange harvest in Texas was
and April sales separately, due allowance should be virtually complete at the end of February, but movemade for the changing dates of Easter. The March sales ment of y~lencias is expected to continue into May.
increase should be discounted for the influence of the ?rapef~U1t ~s exp~cted to be available in good volume
earlier Easter date this year, and the April sales change m Apnl, w~th a lIght s~pply extending into May. The
should be adjusted upward.
1960-61 CItrus crop IS placed as of March i at
9.3 million boxes, or 18 perc;nt more than in' the
New car registrations in the four major Texas
markets in February decreased approximately 1 per- preceding season and about double the 1949-58 avercent from January and were 28 percent below February age. At 3.1 million. boxes, orange output is indicated
1960. Compared with a year ago, February registra- to be 1~ percent hi~her than in 1959-60; grapefruit
tions were 25 percent lower in Dallas and 28 percent productIOn of an estImated 6.2 million boxes is up 19
percent.
less in Houston. Fort Worth and San Antonio reported declines of 29 percent and 36 percent,
St~ong, dry winds during March depleted soil moisrespectively.
ture m south Texas commercial vegetable areas. CulField work progressed rapidly
throughout most of the District
f~R~U LTirRE ~' during March as a result of dry,
,~~
warm weather. However, land
,
preparation was halted temporarily at mid month by snow in the High Plains of New
Mexico and Texas and rain across the northern half
of Texas and most of Louisiana. Moisture is inadequate in the Edwards Plateau, south-central, and
southern areas of Texas. Farmers in the Lower Rio
_,j "

<

i~

',, ..:., ~ "

I BUSINESS
\s

REVIEW
4: 1961

CASH RECEIPTS FROM FARM MARKETINGS
(Dollar amount. in thou .and.)

Area
Ari~~na ••••••••• •• •.•.•••••
~ouisiana: ••• • ••••• • •••• . •••

1960

$

Oew Mexico ..•...... ... .. ...

kla homa •••••• • • •• • __ •• •• •
Texas .... . ....... . ... ..... .

422,483
374,737
228,020
672,394
2,174,442

Total ............. .. . . .. . .
Unite d State ••• •• _•••••••••

$ 3,872,076
$33,745,692

SOURCE: United State. Department of Agriculture .

1959

$

411,806
386,771
254,184
635,443
2,281,531

$ 3,969,735
$33,145,905

Percent
change

3

-3

-10
6

-5
-2

tivating, weeding, and irrigating of spring vegetables
are under way ; and harvest of cabbage, carrots, and
strawberries is active. Texas winter vegetable production for fresh market is indicated, as of March 1,
to be 31 percent below a year ago. Outturns of all
Winter vegetable crops are lower than year-earlier
levels, with substantial decreases reported for cabbage, carrots, and spinach.
Livestock conditions have improved throughout the
District with the rapid growth of pastures. Clovers,
in particular, are responding to the warmer temperatures. Supplemental feeding has declined in most areas;
and in the Plains, cattle have been removed from most
Wheat fields intended for harvest.
In the 4 weeks ended March 15,
total bank credit expanded at
the weekly reporting member
banks in the District, with an
increase in loans being only partially offset by a reduction in investments. Demand and
tune deposits both moved to higher levels, as did
cash accounts and total assets.
Gross loans (excluding interbank loans) rose $66.9
l11illion, contrasted with a $4.3 million reduction in
the comparable period of 1960. During the recent
4-week period, commercial and industrial loans in~reased $23.5 million, loans for purchasing or carryIng securities expanded $28.9 million, consumer-type
loans moved up $8.9 million, and loans to nonbank
financial institutions advaNced $6.4 million.
Total investments at the weekly reporting member
banks declined $18.1 million between February 15
and March 15 , as holdings of both Government and
non-Government securities were reduced. Government
security holdings fell $12.9 million; decreases of
$20.5 million in Treasury bills and $7.3 million in
Treasury certificates were only partially offset by a
$12.9 million increase in Treasury notes and Governl11ent bonds maturing within 1 year and a more modCO NDITIO N OF TH E FEDERAL RESERVE BANK OF DALLAS
(I n tho usa nds of dollars)

~~~===============================================
Item

March 15,
196 1

Feb. 15,
1961

March 16,
1960

01 go certl co te r.s.rv. s. . . .. . ... .... ..
O:hounts for memb.r bonks . • . . . . . . . . . • . • . .
U S discounts a nd advanc.s . . ..... . . .....
. ·r
Tot '1Government s.curltl.s . .. ... . .... . .....
II, a . arnlng ass.ts ...... .. .... .......... .
F.~"' b . r bonk r.s.rv. d. poslts .. ... . . . ......
. ral R.s.rv. notes In actual circulation ... ..

696,485
200
522
1,088,617
1,089,3 39
936,191
810,082

650,222
300
522
1,072,986
1,073,808
911,210
811,529

,
24,355
0
1,012,238
1,036,593
888,944
784,543

~--I----fl -------------------------------------6 1- 77 7
d
'~ 9----

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

CONDITION STATISTICS OF WEEKLY REPORTING
MEMBER BANKS IN LEADING CITIES
Eleventh Federal Reserve District
(In thousands of dollars)
Mar. 15,
1961

It.m

F. b.15,
1961

Mar. 16,
1960

1,561,149
35, 169

1,537,676
32,945

1,456,064
31,129

51,276
26,783

28,878
25,736

291
21,035

ASSETS
Commercial end industria l loans •••••••••••. . •
Agricultural loans••••••••••• ••• •••• •• ••••• •

loans to brokers and dea lers for purchasing
or carrying:
U. S. Gove rnm e nt securities ••••••••••.•• • • •
Other securities •••• • •••• • ••• ••• •• •.• ••• •
Other loans for purcha si ng or carrying:
U. S. Gove rnm en t securiti es •••••.••• • ••. . ••
Othe r securities ••....••••••• •••••• ••••••
Loans to nonbank finoncial Institutions:
Sales flnanc e, p e rsonal financ e, etc ... .. .. ...
Savings banks, mtg e. cos., ins. cos., etc .•.• •••
loons to foreign banks •• •• •..•••• • •••• •••.•
Loans to dom estic commercial banks • • ••• . •••• •
Real -estate loons • ••••••••••• •••• • • • . • • • ••.
All oth. r loons •••.•••. . . . . . • . ...•.•• .... . .

7,161
202,019

9,1 27
194,632

7,330
194,332

92,469
127,679
28
83,890
214,207
796,86 1

85,989
127,759
76
65,262
217, 103
787,947

125,742
116,016
754
53,275
206,694
742,073

Gross loons ••• • .• • • • ••••• • • • • •••.. •••• •
Less reserves and unallocate d cha rge-offs ••

3,198,691
57,756

3,113,130
57,220

2,954,735
54,190

Not loons .• ... . .... ••.•••.••.• . •. • . • •.•

~,140,935

3,055,910

2,900,545

Treasury bills ...•• • •.. . . .. ... . .... . • .. ••..

92,471
27,083

112,923
34,427

44,224
18,525

Other securities • •. . •.•••••••. •• • ••• ••..• . •

177,015
778,34 1
370,082
403,726

164,137
778,113
368,304
408,895

75,246
769,285
320,950
371,030

Total investments •. ••••••••••• • ••••••••••

1,848,718

1,866,799

1,599,260

Cash items in process of collection • • ••....••• •
Balances with banks In for eig n countries • •.••••
Curre ncy and coin •..••••••••••••. . •.••••••
Reserves with Federal Rese rve Bank ••• •. .••• ••
Othe r asse ts • • • •• • • . ••• •.•.••••••••• ••• • ••

546,139
531 ,315
2,100
53,099
573,656
189,996

541,239
498,398
2,068
53,067
537,779
210,488

551,027
523,996
2,341
47,027
485,596
206,753

TOTAL ASSETS . . . ...... . . .... ........

6.885.958

6,765,7 48

6,316,545

Banks in for eign countries ..•••..•••.••.• • •
Ce rtified and ofAcers' checks, etc .. .. . . .. . ..

2,988,334
87,140
244,668
1,121,504
13,821
74,655

2,9 17,671
103,714
227,870
1,079,243
14,646
55,8 13

2,89 1,151
96,093
234,655
990,753
16,100
56,100

Tre a sury certiflcat es of ind e bte dn ess . • ••••••••
Tr ea sury notes and U. S. Governm e nt bonds,
inc luding guaranteed obligations, maturing:

Within 1 year . • •.... . . ... .. . ...... ...• •
Aft. r 1 but within 5 years . ... .• . •.•••••.•.
After 5 y.ars • •. ... .. . .. . ...••..... ... ..

Balances with bonks in the Unlt. d Stat.s •.•••••

LIABILITIES AND CAPITAL ACCOUNTS
De mand de posits
Individuals, partnerships, and corporations ••••
United States Gove rnm ent •• •• • .•• • •••••••
States and political subdivisions • •••..••• •••

Banks In the Unite d States ........ ........ .

Total d. mand deposi ts ••••••••...• . ... .

4,530,122

4,399,159

4,284,852

Time deposits
Individuals, partnership s, and corporations ••••
Unit e d States Governm ent • • •• • •• • • • • •••..
Postal savings •• . • .••.. . •• •• •• • • • •• •.• . •
States and political subdivisions • • • •••••••••
Banks in the U. S. and foreign countries ••••••

1,306,681
14,513
394
274,567
9,326

1,306,619
14,513
394
270,240
10,288

1,034,327
11 ,255
394
236,076
3,546

Tota l tim e deposits • • ••• . •• • ••••.••••••

1,605,48 1

1,602,054

1,285,600

Total deposits •• . . • ••..••• .. . ... . • . •
Capito l accounts •••••• ••••••••••• ••• •• .• • •

6,135,603
87,000
90,Q58
573,297

6,001,213
71,000
118,808
574,727

5,570,452
74,265
127,180
544,648

TOTAL L
IABILITIES AND CAPITAL ACCOUNTS.

6,885.958

6,765.748

6,316.545 .

Bills pa yab le, re discounts, etc ... . ............

All oth.r lIabllltl.s • .• . ... . . .. . . .• . ...... . . .

erate expansion in other Government bonds. In the
corresponding period of 1960, total investments rose
$21.9 million as Government securities moved up
$ 21.1 million and non-Government holdings rose
$800,000.
In the 4 weeks ended March 15, total deposits at
the weekly reporting banks advanced $134.4 million.
Demand deposits expanded $131.0 million as a result

I

BUS I NESS RE VI EW
91
4: 196 1

free reserves of country banks were less than half
the level for the 4 weeks ended March 1, 1961.

RESERVE POSIT IO NS OF MEMBER BANKS
Eleventh Fe deral Reserve District
(Averag es of daily flgures. In thousands of dollars)'
4 weeks end e d
Ma r. I, 1961

Item

4 wee ks end e d
Fe b. I, 1961

4 wee ks end ed
Mar. 2,1960

564,4Bl
526,085
38,396
556,312
8,169
786
7,383

5B 1,528
540,928
40,600
567,1 97
14,3 31
304
14,027

522,846
520,853
1,993
520,515
2,331
63,745
-61,4 14

522,297
424,702
97,595
447,B24
74,473
344
74,129

52B,1 19
424,294
103,825
445,446
82,67 3
43 4
82,239

462,545
456,225
6,320
415,B79
46,666
16,776
29,890

1,086,778
950,787
135,99 1
1,004,136
82,642
1,1 30
81 ,512

1,109,647
965,222
144,425
1,0 12,643
97,004
73B
96,266

985,391
977,078
B,3 13
936,394
48,997
80,521
-31,524

RESERV E CITY BANKS
Tota l reserves held . .. ••..•....
With Fe dera l Reservo Bank . . . .

Ca sh allowe d a s rese rves .. . . .
Req uire d rese rves . . .... .. .. . . .

Excess reser ves . ... ... . . . ... . .
Borrow ing s•. .. . . . • . ... • ••• •• •
Free reserves • . ... •• .. . • • . .•• •

COUNTRY BAN KS
Totol rese rv es held . . •. .. . .. .. .

With Federal Reserve Bank. . . .

Cash allo we d a s rese rves . .. . .
Re quired reser ves . . • . . ........

Excess rese rves . .... ...... .. . .
Borrowing s. . •• •. . . •..• • .. . •••
Free reserv es . •• .. . •...••..•• •

ALL MEMBER BAN KS
Total reserves held . .• ... .... ..
With Fe deral Rese rv e Bank . . . .

Ca sh allowe d a s rese rves . .. ..
Re quire d rese rves . . •. ... . . ....
Excess rese rv es . . . .. •• . .. .... •
Borrowing s.. •.. .. . . ... . , ... .•
Fr ee rese rv es. . .... . . . . . ... •..

NOTE . Reg ulation s permitting me mbe r ban ks to count part of th eir vault cash in
mee tin g rese rve requ ire me nts becam e effec ti ve in De cemb e r 1959; effect i ve No ve mb er
24 , 1960, all va ult ca sh can be count ed in me eting rese rve require ment s.

of increases of $70.7 million in deposits of individuals,
partnerships, and corporations; $42.3 million in deposits of domestic banks; $18.8 million in certified
and officers' checks, etc.; and $16.8 million in deposits
of states and political subdivisions. A reduction of
$16.6 million was recorded in deposits of the United
States Government. Time deposits rose $3.4 million,
which represents the smallest gain in 8 months . A
slower rate of increase in time deposits of individuals,
partnerships, and corporations largely accounted for
the smaller growth in total time deposits.
Total reserves of the District member banks declined during February. Excess reserves were reduced
at both reserve city and country banks. Borrowings
were somewhat higher at reserve city banks but were
slightly lower at country banks. Nevertheless, reserve
positions remained comfortable at both types of banks.
In the corresponding period a year ago, reserve city
banks had substantial net borrowed reserves, while

NEW PAR BANK
The North Da ll as Ba nk & Trust Co ., Dall as, Texas,
an ins ured no nmember bank located in the territo ry
served by the Head O ffice of the Federal Reserve Ba nk
of Dallas, was added to the Par list o n its o pening
date, March 2 0, 1961. The officers are : H. L. Kimsey,
President; S. M. Payne, Vice Pres ide nt; Joe B. Sal mo n,
Cash ier; and Marli n l. Myers, Assista nt Cash ier.

I

B USI NESS RE VI E W
4: 19 6 1

Between February 15 and March 15, total earning
assets of the Federal Reserve Bank of Dallas rose
$15.5 million. United States Government security
holdings increased, while discounts and advances to
member banks moved slightly lower. Federal Reserve
notes in circulation declined $1.4 million to a level
$25.5 million above a year earlier. Gold certificate
reserves expanded $46.3 million and were $76. 7 million higher than a year ago.
Mixed trends characterized the
petroleum industry during February and early March. NeW
supplies of crude oil were limited in February, and refinery
needs were high . In early March, both crude oil production and imports advanced significantly and were
more than sufficient to satisfy refinery demands; consequently, crude oil inventories increased slightly. The
demand for petroleum products during most of February was generally strong, and prices were firm. HoWever, product consumption declined in early March,
and some price shading was reported for gasoline and
heating oils throughout the Nation.
Crude oil production in the District advanced fractionally during February, but early-March output,
averaging 3,126,000 barrels daily, rose 5 percentthe sixth consecutive monthly increase. National crude
oil output was also at a higher level during the first
2 weeks of March, and crude oil supplies were further
expanded during the period by an 18-percent rise in
crude oil imports. New supplies of domestic crude
should be somewhat less plentiful in April as the
Tex.as allowable schedule has been lowered to 9 prod~c~g days. Thus, the daily average flow of crude
Ollm the State should decline about 125,000 barrels.
District drilling operations during February were
at a lower level tllan in January; on the other hand,
drilling activity strengthened in early March, partiallY
because of the increase in crude oil production . Both
the average number of active rotary rigs and total
footage drilled in the District advanced significantly.

Refin~ry demand for crude oil was high in February·
Crude .o~l runs to national refinery stills averaged over
8,.4 million barrels daily during the month but declIlled moderately in early March . Refineries opec-

ated at about 80 percent of capacity at mid-March,
compared with 85 percent a month earlier.

Nonfarm employment in the District states declined
slightly during February, but the decrease was at a
The demand for the four major refined products more mode~ate rate than a month earlier. On a yearto-year baSIS, there was a net increase of 13,100 in
~ecreased seasonally in February. A contraseasonal
the number of nonfarm wage and salary workers in
Increase in gasoline consumption and a less than
anticipated decline in residual fuel oil demand offset the five states, primarily because of expansion in trade
more than seasonal decreases in the demand for kero- finance, service, and government employment. Th~
sene and distillate fuel oil. Weather conditions mod- growth in these sectors counterbalanced moderate
erated throughout most of the Nation in late February, declines in. manufacturing, mining, construction, and
transportatlOn and public utilities employment. Cona?d higher temperatures in early March caused a sigstruction employment reversed direction and increased
~i:ficant reduction in heating oil consumption. Gasosomewhat during February.
hne and residual fuel oil demand, however, failed to
Another encouraging labor market development was
offset this decline in early March. Therefore, the dethe 26-percent decline in the number of workers makmand for the four major petroleum products decreased
more than seasonally, and total product stocks ing initial application for state unemployment insurance benefits in Texas during the first half of March
advanced.
as compared with the first half of February. Initial
The Texas industrial production claims during the first part of March were about the
.~
.
index declined to 170, on a ~ame as a year earlier. Initial claims for unemployment
~f} U STRY
seasonally adjusted basis, during lDsurance benefits partially indicate the trend, size
February, or 3 points below both and composition of new unemployment. February un~
.
a month earlier and a year ear- employment in Texas reached an estimated 239,900,
her. Partly reflecting the fewer number of days in the or 6.7 percent of the State's total civilian labor force.
month, the decrease in the mining component, princiThe total value of construction contracts let during
pally in crude petroleum output, accounted for a major
January in the five southwestern states advanced
~ortion of the month-to-month decline in total produchon. Nondurable manufactures accounted for the sharply for the second consecutive month and
remainder of the decline from January as a result of amounted to $350 million. Residential contracts were
reductions in practically all sectors - especially petro- almost one-fifth above December and exceeded the
~um, food, chemicals, apparel, and textile products. year-earlier figure for the first time since mid-1959. "All
. he production of durable goods held constant as other" contracts were 52 percent above January 1960
and 23 percent higher than in December 1960. Al~ncre~ses in th~ output of lumber, primary metals,
lectncal machmery, and transportation equipment though private outlays for nonresidential building deproducts offset slight reductions in other durables clined somewhat, sharply increased public lettings
for heavy engineering projects boosted the "all other"
sectors.
component - in contrast with the national experience
NONAG RI CULTURAL EM PLOYMENT
in this construction sector.
Five Southwestern States 1

INDU STR IAL PRODUCTI ON

~~~~======================================
Percent chang e

Fe b. 1961 from

Number of persons
February

----2.ype of employment
Total nonagricultura l
Woge and salary workers ..
Manufacturing • ........ ••

NoM,:"onufacturin g .. .... . .
c~nlng.

' 0' • • • • • • • • • • • •

"struchon . . . . .......
Tran.sp!lrtation and public

Tr~~I~~I~~: :: : : : : :: :: ::
~inance • • •••••••••••••

Ge~~~cr~~~~t:::::::::: :

--t

January

February

196 1e

1961

1960r

~-

Jan.
1961

Fe b.
1960

4,383,300
758,400
3,624,900
241,600
285,900

4,398,500
76 1,300
3,637,200
242,500
285,500

4,370,200
778,600
3,59 1,600
249,500
292,200

-0.4
-.4
-.3
-.4
.1

0.3
-2.6
.9
-3.2
-2.2

392,700
1,074,600
208,600
562,700
858,800

394,800
1,087,200
207,900
561,500
857,800

405,400
1,073,200
198,200
540,300
832,800

-.5
-1.2
.3
.2
.1

-3.1
.1
5.2
4.1
3.1

Arizona , Louisiana, Now Mexico, Ok lah o ma, and Texas.

a-

Estimated.

Revised .

OURCES , State emp loyment ag encies.
Federa l Reserve Bank of Dallas.

(,Seasonally adjusted indexes, 1947·49

= 100)

Fe bruary

Area and type of index

TEXAS
Total indu strial production ••••. ...
Totol manufactures • • • •• . . .. ..•.
Durable manufactures ... . . .. ... .
Nondurable manufactures ••.. ....
Mining ...... .. ...... .. ...... .

January

Decemb er

1961p

February

1961

1960

1960

170
212
248
196
129

173
215
248
200
132

171
210
237
197
133

173
210
246
192
137

155
152
154
155
127
294

155
153
155
155
129
291

156r
154
156
156r
129r
291r

166
166
178r
157
126
282r

UNITED STATES
Total industrial production •. . •.•.•
Tota l manufactures •• •• •••••.• ••
Durabl e manufacture s... ..... •.•
Nondurable manufactures• . . . ...•
M ining .••....... . ...•.•..•.. .

Utilities •....••.•.•••••••••••••
p r -

Pre liminary.
Revised.

SOURCES, 80ard af Governors af the Federal Reserve System .
Fede ral Reserve 8ank of Dallas.

BUS I NESS REVIEW
4:1961
11

I
I

BANK DEBITS, END-OF-MONTH DEPOSITS
AND ANNUAL RATE OF TURNOVER OF DEPOSITS

CONDITION STATISTICS OF ALL MEMBER BANKS

Eleventh Federal Reserve District

(Dollar amounts In thousands)

(In millions of dollars)

D ebits to dema nd

de posit occounts 1

Item

Perce nt

change from

Annual rate of turnover

1961

Loans and discounts ••.....
United States Government obligations
Other se curities . ... .
Reserves with Fed eral Reserve Bank •••. •..•
Ca sh in vault e .•.
Balances with banks In th o United States . ...
Balanc es with banks in foreign countrl es O... .
Ca sh items In process of collection .•
Other assets e . ••..•.•.• ...

5,024
2,691
897
915
142
1,131
2
624
278

4,892
2,657
890
943
157
1,336
2
553
324

1961

Feb.
1960

Feb. 28,
1961

Feb.
1961

1961

- 18

-9

$ 136,863

18.6

22.6

19.2

AR IZONA

11.704

11,754

10.894

1,221
6,676
2,678

1,338
6,670
2,593

998
6,569
2,139

10,575
36
11 8
975

10,601
6
165
982

9,706
99
170
919

11 .704

11.754

10.894

0

Tucson • ••••••••..••• $ 212,740

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

71,673
313,698

-20
-15

-9
-1

54,829
190,341

16.3
19.8

20.0
22.4

17.5
19.4

Nf;W MEXICO
Roswell • • ••• ••• .••••
TEXAS

41, 178

-17

11

38,799

13.2

17.6

0

•••••

0

0

0

0

••••

••••••••••

0

•

0

•

•••

0

••

••

00

Feb.
1960

••••

0

•

•

•

•••

•

•

•••••

••••

0

•

•

14.0

0

0

91,073
196,354
212,335
148,010
180,655
14,492
2,749,7 45
293,574
703,725
83,252
2,364,494
24,931
208,672
63,449
48,755
566,711
19,700
77,261
95,227
107,267

-15
- 19
-3
-13
-7
-2 1
-16
-19
-16
-10
- 14
- 13
-30
1
- 15
- 10
-13
- 14
- 15
-15

-2
-8
-1
-8
1
-9
4
-13
-5
-9
-7
-9
-3
7
-4
-2
-4
-6
-5
-4

65,603
116,711
148,827
102,182
106,286
19,652
1,088,644
196,435
374,303
63,100
1,310,782
22,056
116,288
43,355
45,993
374,377
17,870
60,600
68,393
96,259

16.6
19.9
17.2
17.2
20.2
8.8
29.3
19.0
22.6
16.1
21.7
13.7
20.8
17.3
12.6
18.0
13.3
15.4
16.4
13.2

19.2
23.9
16.9
19.3
21.6
10.8
31.3
25.2
25 .8
18.4
24.6
15.8
28.3
17.4
14.6
19.7
15.6
17.9
18.8
14.8

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

10tol-24 cities . . . . .... $8,888,971

-15

-3

$4,858,548

21.7

246

22.7

Abilene . . •.•......•.

Beaumont • ••.••••.••

Corpus Christi . ...... .
Corsicana .. .... .. ...
Dallas • • •..••.. ••• ••
EI Paso • •.•••...•••.
Fort Worth ••.. • •..••
Galveston .. .........
Houston ••••• • •.••••

Lor edo •...... .•....

Lubbock .•••.•••.•••
Port Arthur •. ..... .. •
San Ang elo •••••....
San Antonio .....••.•
Texarkana 2 •• •••••••

Tyl.r •••••.. ••••.. ••
Waco ... .... ...... .
Wichita Falls ••..••••

1

•••

•

0

•••

••

•

•••

lI A81LITIES AND CAPITAL ACCOUNTS

Amarillo ••••••••.•••
Austin ......•.... .. •

Demand d eposits of banks •...
Oth er d emand d eposits ... . . ..........
Time d epo sits ••.•• ...
000

0

•••••••

0

0

•

•••

•••••

••

0

0

•••

0

••••••••••

0

••••••

0

••

e-

Estimated.

VALUE OF CONSTRUCTION CONTRACTS
(In thousands of dollars)

Resi dential building •..

0

•

•••

•••••••

Thi rd "quarter

1960

1960

••

658,300
198,200
180,000
1,418,200

580,800
173,900
148,600
1,376,900

Total •••••••..•• . ••••• .•••

2,444,900

2,454,700

2,280,200

1960

289,537
105,651
183,886
2,717,70 1
877,733
1,839,968

259,687
111 ,905
147,782
2,192,949
926,966
1,265,983

January

Arizona ~ Loui siana, New M exico, Oklahoma, and Texas .
Preliminary.

SOURCE, F. W. Dodge Corporation.

1959

699,700
194,800
161 ,400
1,389,000

1960

349,925
124,704
225,221
2,485,050
973,803
1,511,247

All other ••••• •• ••••• •.••••• •.. .•
UNITED STATES •• •• ••••••..•••• ••••
Resi dential building • .• ••• • •.•••• ••
All other •••••• ••••.••• •••••••• ••

D ecembe r

1961p

FIVE SqUTHWESTERN STATES' .•••• ••

1

Second quarter

January

Areo and type

P -

Third quarter

••••

•••••••••••

TOTAL LIABILITIES AND CAPITAL
ACCOUNTSe •••• •• •.••••••.• . • • •••

•

(In millions of cubic f.el)

••

•

Deposits of Individuals, partnerships, and corporations and of states and political

MARKETED PRODUCTION OF NATURAL GAS

0

Total deposits • ••• ••• ..••••.. •••••.• •
Borrowings e •........
Oth er lIabilities e .••.......•... . .
Total capital accountse .• ••. .

subdivi si ons .
!! These flgures include only two banks In Tex arkana, Te xa s. Total debits for all banks
in Texarka na, Texas · Arkansas, including on e ban k located in the Eigh t h Di strict

amount.d to $4 1,820,000 for the month of february 1961.

-

4,758
2,502
862
842
144
935
2
527
322

TOTAL ASSETse •• • ••••• ••• •••••••• ••

Jan.

196 1

Jan.

Feb. 24,
1960

ASSETS
0

February
Area

Jan. 25,
1961

Marol,

Demand deposits!

Are a
Louisiana
New Mexico . ••• ...
0

0

0

•

0

0

0

0

0

••

0

0

0

0

••

••••

0

0

••

•

•

•

•

Oklahoma •• • •. •. ••• •••• •• ••
Texas • • .

0

•••••••••

0

•••••

0

BUILDING PERMITS

=======================
=
VALUATION (Dollar amounts in thousands)

----------------------------~---Percent cha nge ___

SOURCE , United States Bureau of Mi nes.

Feb. 1961

NUMBER

DAILY AVERAGE PRODUCTION OF CRUDE OIL
Area

( In thousonds of barrels)
Chang e from
February

January

February

January

Area

1961p

1961 P

1960

1961

elEVENTH DISTRICT. •••.. ••

2,994.6
2,617.1
475.8
1,192.6
132.7
104.3
711.7
265.7
111.8
4,191.6
7,186.2

2,990.8
2,617.8
479.9
1,188.7
132.9
104.2
712.1
262.6
110.4
4,186.1
7, 176.9

3,120.8
2,740.9
505.8
1,279.7
150.8
106.6
698.0
256.9
123.0
4,120.1
7,240.9

Texas . .

0

•••••••••••

0

•••

Gulf Coast •. . ••• • ••.••
West Texas .. .......•.
East Texas (prop er) .. ...

Ponhandl e •.••...••...
Rest of State ••••...•••
Southeastern New Mexico •.
Northern Louisiana •.•.....

OUTSIDE ELEVENTH DISTRICT.
UNITED STATES •• •.•• •.• •• .
p -

Preliminary .

SO URCES, Americon Petroleum Inslitul •.
United States Bureau of Minos.

Federal Ros.rve Bank of Dallas.

BUSINESS REVIEW

12

4: 1961

0.1
.0
-.9
.3
-.2
.1
- .1
1.2
1.3
.1
.1

February
1960
-4.1
-4.5
-5.9
-6.8
- 12.0
-2.2
2.0
3.4
-9. 1
1.7
- .8

Fe b.
1961

ARIZONA
764
Tucson. . . . . . ..
LOUISIANA
Shreve port.. • •
291
TEXAS
Abilene. . . ... .
89
Amarillo......
323
Austin.. .. . .. .
288
Beaumont. • • • •
250
Corpus Ch risti..
268
Dalla......... 1,526
EI Paso.. ••. ••
58 1
Fort Worlh. . . •
444
Galveston.....
118
Houston. • • • • • 1,052
Lubbock . . • . • .
207
Port Arthur. • . •
177
San Antonio . . . 1,086
Waco... . ... .
277
Wichita falls . •
95
Toto l-17 cities •• 7,836

from

2 mos.
1961

Fe b.
1961

2

mos.

2

Jan.
1961

Feb.
1960

9,663

10

21

1961

months,

1961 from
1960

---

1,403

$ 5,060

611

1,867

8,848

-73

13

133

206
588
587
500
505
3,074
1,075
947
191
2,155
410
293
2,014
443
267

824
3,017
3,824
924
1,175
13,288
10,896
3,042
273
13,814
4,179
741
4,332
82 1
1,468

2,293
5,320
8,400
1,936
2,784
35,23 1
16,502
5,145
62 1
28,914
7,262
1,299
8,189
1,970
4,899

-44
31
-16
- 9
-27
-39
94
45
-22
-9
36
33
12
-29
-57

-57
10
19
22
36
17
216
-12
46
-16
25
-58
-16
3
66

-26

15,269

$69,545

- 13

12

22

$

-----$149,276

31

_5

40
46
45
52
194
_24
123
_14
_2
_54
0
_26
92

----