Full text of Review (Federal Reserve Bank of Dallas) : April 1965

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business
•
review

april 1965

FED ERA IL. RES E R V E
BANK 0F DALlAS

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

contents

texas manufactured products
in international trade .......................

3

perspective on bank profits ........ . ........

7

district highlights ........................... 12

texas manufactured
products in
international trade
Foreign markets provided an important outlet for Texas manufactures in 1963, according
to data recently released by the U. S. Department of Commerce. 1 Products from nearly
every major industry group were shipped to
foreign ports or across the Mexican and Canadian borders. The regional specialization of the
Texas economy is clearly evident, however,
~rom the preponderance of nondurable goods
IU total sales abroad. This preponderance refte~ts the agricultural and mining bases upon
whIch much of the manufacturing activity in
Texas is built. Three product groups - chemiC~ls, food, and petroleum - accounted for
tree-fourths of the value of Texas manufactured exports.
I Texas factories shipped (f.o.b. producing
pants) $899 .1 million of merchandise inter~ationally in 1963, a value which ranks the
f tate as the seventh largest exporter of manutctured goods in the Nation - behind Cali'ornia, New York, Illinois, Ohio, Pennsylvania,
~~d Michigan. Of this total, $694.5 million, or
d percent, was derived from sales by the nonur.able goods industries. In none of the other
major exporting states did the export of n0n-

-

lTh C
of ma e f ensus Bureau survey of the value of exports
run o~u act.ure~ products by state of origin has been
Consist y tWl<?e, ID 1960 and in 1963. The respondents
ing m ed mamly of manufacturing establishments havthan $~~e than 100 employees and exporting more
rePOrted ,000 of goods per year. The figures actually
sUs Bu by manufacturers were adjusted by the Cenufactu:eeJu to account for the local origin of all manPOrt valu e~ports. The product classification of exof total ~s IS bh~sed upon the industrial classification
vidual pP dant s Ipments, rather than exports of indiro ncts.

durables play such a leading role. Threequarters of the value of internationally traded
manufactured goods of California origin, for
example, represented shipments of durables.
Most of the other leading manufacturing states
had an even higher proportion of durable goods
in total foreign shipments.
This heavy weighting of nondurables in the
composite of Texas shipments of manufactured
goods abroad was important, however, in keeping the State in the ranks of the largest international traders in the Nation between 1960
and 1963. Whereas sharp increases in durable
goods exports were recorded for the top six
states, Texas reported a slight decline. It was
only in the export of nondurables that the
Texas gain about matched the performance of
the Nation.
The absence of growth in the shipment of
durables to foreigners from Texas plants between 1960 and 1963 is attributable to sizable
decreases in the value of exports by two of the
largest durable goods industries in the Statenamely, nonelectrical machinery and primary
metals. Nearly all of the other industries producing hard goods realized appreciable gains
between the two periods of time, especially
electrical machinery and fabricated metal
products.
The value of foreign shipments of primary
metals of Texas origin showed a 51-percent
decline from 1960 to 1963, a precipitous decline that reflects a number of factors. Although
a list of the primary metals produced in the

business review / april 1965

3

State includes aluminum, antimony, copper,
lead, manganese, tin, zinc, and steel, the bulk
of the dollar value of exports of these metals
from Texas is accounted for by zinc, lead,
aluminum, and copper, most of which is sent
abroad in the form of ingots or slabs. 2 The
volume of foreign shipments of zinc, copper,
and aluminum, both from the United States
and from Texas, was at an all-time high in
1960 - in fact, at a level neither before nor
since closely approached. This peaking in 1960
was caused, in part, by a high world demand
for the three nonferrous metals in a year when
the American economy was experiencing a mild
recession. There was, also, some stocking of
nonferrous metals in the world economy that
year, especially refined copper. Thus, the comparison of primary metal exports for Texas between 1960 and 1963 is distorted by the
unique, unsustainable level of such exports in
the former year.

oil the zinc ,slabs ' sold abroad by domestic producers went to Ind£a. 'United States exports of
lead, copper, and aluminum also declined ap.
preciably between 1960 and 1963.'
\VALUE 'OF 'MANUFACTURES EXPORTED
BY SELECTED STATES, 1963

1

J

CALIFORNIA

I

I

J

j

ILLINOIS

I
j

OHIO

I
PENNSYLVANIA

I
I

MICHIGAN

J

J

TEXAS

I

I

NEW JERSEY

I
I

MASSACHUSETTS

Furthermore, the export prices of lead, zinc,
and copper were all slightly lower in 1963 than
in 1960; aluminum ingot prices were generally
down by about 13 percent. As a result, the
effects of sharply reduced tonnage were magnified in value terms by price declines.
Another contributing feature of the significant reduction in the value of primary metals
shipped internationally from Texas plants between 1960 and 1963 was the growth of world
capacity to produce nonferrous metals, a
growth that led to changed patterns of international distribution. In 1960, when Texas was
the Nation's largest producer of zinc, the
United Kingdom purchased one-third of all
zinc slabs and pigs shipped from the United
States; however, by 1963, such shipments from
the United States to the United Kingdom had
declined to zero. In this latter year, 89 percent
2 Texas produces much of the Nation's supply of
magnesium. The metal is pro~uced by a!1 electr~­
chemical process, however, and IS classed wIth chemIcals and allied products.

4

J

NEW YORK

L
WISCONSIN

J
o

J

400

800

1,200

1,600

MILLIONS OF OOLLARS
SOURCE:U,S, Daporlm'nl of Commt rce.

The decrease in the value of nonelectrical
machinery sold abroad by Texas plants between 1960 and 1963 mainly represents a reduction in the shipment of oil field equipment.
Although the nonelectrical machinery industry
in the State embraces the production of a wide
range of items, including farm, construction,
food-processing, refrigeration, and air-conditioning equipment, the manufacture of oil field
supplies is clearly the leading segment. This is
not surprising in view of the fact that more
than half a million oil and gas wells have been
drilled in Texas since 1900. The moderate decline in the value of oil field machinery sent
abroad between 1960 and 1963 probably reflects a reduced pace of exploratory drilling in
the latter year in Canada, Libya, and Argentina. Texas-based oil firms and drilling contrac-

tors were much involved in the oil plays in
those countries during 1960.
In the durable goods category, slightly over
one-half of the losses incurred by the primary
metal and nonelectrical machinery industries
were offset by appreciable gains in foreign sales
by Texas producers of electrical machinery and
tr~nsportation equipment. The electrical ma~hlUery industry in Texas is highly concentrated
In electronics, although industrial controls,
carbon electrodes, storage batteries, and other
~ypes of electrical equipment are manufactured
In the State. The larger sales to foreigners in
19.63 reflect, to a significant degree, increased
shIpments of radar and microwave systems, system components, and solid state semiconductor
devices. In the case of transportation equip~ent, the sharp rise from 1960 to 1963 derIved, in part, from increased sales to Latin
America of Texas-produced motor vehicles,
truck and bus bodies, truck trailers, helicopters,
and boats.
The strong advance in Texas shipments of
nondurable manufactures between 1960 and
1963 is attributable almost entirely to increased
Erxportds of nondurables manufactured in
exas u'
ind
rmg 1963 came mostly from three
Ustry groups . ••
~NDURABLE GOODS
PETROLEUM
AND COAL
PRODUCTS ...-r-r-_

DURABLE GOODS

FOOD
AND KINDRED
PRODUCTS

PRIMARY
METAL INDUSTRIES
SOIJRCE: U,3.0t pol lmtnt 01 Commerce.

foreign sales by each of the three largest exporting industry groups in the State - chemicals and allied products, food and kindred
products, and petroleum and coal products.
Nondurable goods were a major part of
Texas factory exports in 1963 ...
TE XAS

UNITED STATES

DURABLE
GOODS

64%

NONDURABLE
GOODS

SOU RCE: U.S, D, porlm,nl 01 Commltce.

The chemical industry - the largest manufacturing group in Texas, as measured by
value added - was the largest exporter, by a
wide margin, in both 1960 and 1963. The
chemical industry in the State is primarily oriented toward the production of organic compounds derived from the sophisticated processing of natural gas, natural gas liquids, and refinery off-gases. Sizable quantities of inorganic
chemicals are produced annually in the State,
but most of these are consumed within the area
in the production of organic compounds. Solvents, alcohols, resins, and elastomers were
all represented in the product mix shipped
abroad from Texas in 1963, with most of the
foreign sales going to the developed nations of
the world, particularly those of Western
Europe, Japan, and Canada. Japan and Western
Europe were also important takers of carbon
black, mainly used in the production of tires.
Lacquers, enamels, and primers found favorable markets in Latin America.

business review / april 1965

5

The Texas industries classified as manufacturers of food and kindred products were the
second largest exporters of manufactured goods
in both 1960 and 1963. In addition, this industry group enjoyed the largest absolute gain
in the value of merchandise shipped abroad of
any manufacturing industry in the State. Except
for the production of liquors, wines, and brandies, virtually every major food-processing
activity is carried on in Texas. In international
commerce, however, a significant proportion of
the value of food and kindred products shipped
from the State is accounted for by vegetable
oils, animal feeds, milled rice, animal fats and
oils (both edible and inedible), and meat and
meat products. Important markets for rice include India, Japan, and Pakistan, while Western Europe and the United Kingdom are significant importers of other products.

weather. In the early months of 1963, Western
Europe experienced one of the worst winters of
record for that area; and, not surprisingly, heating oil consumption spurted to a new high. This
record call for heating oils required supplemental shipments from outside Western
Europe's usual primary channels of supply,
running from the Middle East and North Africa. Venezuela provided additional quantities
of residual fuel oil, and the United States
(mainly Texas) sharply increased shipments of
distillate fuel oil. Compared with the prior year,
distillate exports from the United States in
1963, on a volumetric basis, were up 82 percent. This advance was the first strong yearto-year rise in distillate sales abroad since the
Suez crisis in 1957. The upward spurt in 1963
boosted distillate exports for the Nation to a
level that was 53 percent higher than in 1960.

The sharp increase between 1960 and 1963
in foreign sales of petroleum products refined
in Texas does not reflect a major uptrend. The
gain largely mirrors an aberration of European

Apart from the chemical, food processing,
and petroleum refining industries, the other
Texas manufacturing groups in the nondurable
goods category posted relatively modest abso-

VALUE OF EXPORTS OF MANUFACTURED PRODUCTS, BY MAJOR PRODUCT GROUPS
(Values f.o .b. producing plants. In millions of dollars)
Texas

Product group

1963

1960

. . .... . , ....
Durable manufactures
Lumber and wood products ....... .. .
Furniture and fixtures ....... . .......
Stone, clay, and glass products .....
Primary metal industries .... . ... . .. . .
Fabricated metal products .. . ........
Machinery, except electrical .. . .... . ..
Electrical machinery .....
Transportation equIpment ...... .. ...
Instruments and related products ....
Miscellaneous manufacturing 3 . . .

204.6
5.5
.8
3.5
32.6
22 .9
77.9
30.7
15.6
7.2
8.0

.... ..
Nondurable manufactures
Food and kindred products ...
Tobacco manufactures
Textile mill products . . .... . ..
Apparel and related products .
Paper and allied products ....
Printing and publishing . . .....
Chemicals and allied products .
Petroleum and coal products
Rubber and plastics products ...
Leather and leather products ...

694.5
194 .7
.0
2.2
2.8
7.0
2.0
314 .5
169.0
2.0
.2

205.9
4.2
.9
1.3
67.1
13.0
85.4
11.5
11.2
4.6
6.7
621.0
166.0
.0
2.4
2.6
7.9
1.6
294.0
144.4
1.9
.2

899.1

826.8

Total manufactures

.... . , .....

.....

United States
Percent
change
-1
33

( 1)
(~)

-51
( 0)

-9

(0)

39

(0)

20
12
17
0
-8
5
-12
25
7
17
9
(t)

9

1963
10,463.4
192.9
26.4
197.7
852.1
546.6
3.473.3
1,206.8
2,590.6
697.2
679.8
5,814.0
1,710.2
498.7
266.2
119.5
452.0
168.5
1,869.5
428.5
240.1
60.8
16,277.4

Not calculated in instances where exports were less than $1 million.
o More than 50.percent change, and less than three·fourths of total figure was actually reported.
3 Includes ordnance and accessories .
NOTE. - Details may not add to totals because of rounding.
SOURCE: U. S. Department of Commerce.

1

6

1960

Percent
change

9,199.8
152.3
30.2
173.4
1,072.3
410.9
2,827.0
919.2
2,551.4
507.4
555 .7

14
27
-13
14
-21
33
23
31
2
37
22

5,143.4
1,384.0
456.7
284.0
114.4
376.1
132.0
1,728.2
393.6
219.4
55 .0
14,343.2

13
24
9
-6
4
20
28
8
9
9

11

13

lute changes in the value of goods exported
between 1960 and 1963 . Increases in some in~ustries were slightly outweighed by declines
In others.
There is little room for doubt that exports
of merchandise provide a significant margin
of ~evenue and employment for a number of
major Texas manufacturing industries. The five
largest exporting groups - chemicals, food

processing, petroleum refining, nonelectrical
machinery, and primary metals - accounted
for 88 percent of the total value of :Texas manufactured shipments abroad in 1963. These
same industries employed 45 percent of the
factory wage and salary workers in the State
and generally paid their employees aboveaverage wages for the area.
WELDON C. NEILL
General Economist

P@rsp@ctive on

ban/~ p,.ofits ·
D~ring the current period of economic ex-

pa~slon, which began in March 1961 financial
savlUgs h ave been accumulated by corporatIOns
'
.
and 'md'IVlduals
.
at an unprecedented rate. A
gro .
Wing share of these funds has accrued to
comm
. I banks in the form of time and sav.
erCla
lUgs d
.
deposits; and, as a result, the banking ini~try has. undergone significant changes. The
ow of time and savings deposits has stimuIated the
. banks and enbl
growth of commercIal
~ ed them to satisfy a greater proportion of
T~ total credit requirements of the economy.
e enlarged role of banks in the financial markets has n t b
. a como een reflected however III
"
parabl .
e Improvement in bank profits.
Member banks in the Eleventh Federal Reserve D' .
.
Istnct experienced a decline in the
raho of
t
net current earnings before taxes to
otal assets during the 1961-64 span of the
current
.
sh
economic expansion. This trend is in
arp Contrast to that shown in each of the two ·

prior periods of rising economic activity.1
Earnings as a percentage of total assets rose
steadily from 1954 to 1957 and from 1958 to
1960, but from 1961 through 1963, this percentage fell sharply. In 1964 the ratio of earnings to total assets was unchanged from the
1963 level. This article examines the principal
factors affecting the profitability of member
banks in the Eleventh District during the current phase of the business cycle and highlights
major features of bank operating statements for
1964.

sources and uses of f unds
An analysis of the sources of bank funds and
the purposes for which the funds are used is
basic to interpreting changes in bank 'profita1 These periods have been designated by the National Bureau of Economic Research as extending
from August 1954 to July 1957 and from April 1958
to May 1960.

business review / april 1965

7

bility. Sources of bank funds include increases
in deposits and other liabilities and shifts in
the composition of assets. Funds from these
sources may be used to acquire other assets or
to reduce other bank liabilities. The accompanying table reveals marked differences in the
sources and uses of bank funds in three periods
of economic expansion, differences which are
important in explaining variations in bank
profits among the periods.
During the 1961-64 upswing in economic activity, the increase in deposits provided about
88 percent of the expansion in bank funds,
compared with about 70 percent in the 195860 interval and almost 46 percent in the
1954-57 period. Increases in other liabilities
and capital accounts supplied a significantly
smaller proportion of bank funds than in the
other two expansionary periods.

This inflow of deposits enabled member
banks to meet customers' loan demands without reducing U. S. Government security holdings and other liquid assets. Cash assets of
member banks - principally reserves at the
Federal Reserve Bank and balances with correspondent banks - increased sharply from
1961 to 1964, absorbing 19 percent of the rise
in bank funds during the period. It should be
noted, of course, that this gain stemmed partially from the larger required reserves associated with higher levels of deposits.
The growth in deposits in the 1961-64
period largely took the form of a surging inflow
of time and savings deposits. During this
period, these deposits rose at an average annual rate of 21 percent, compared with rates of
about 14 percent and 7 percent in the 1954-57
and 1958-60 periods, respectively. The higher

COMPARATIVE STATEMENT OF SOURCES AND USES OF MEMBER BANK FUNDS
DURING THREE PERIODS OF ECONOMIC EXPANSION

Eleventh Federal Reserve District
(Dollar amounts in millions)
October 7, 1954June 6, 1957
Source or use of funds
Sources of funds
Increase in:
Time and savings deposits ... . ....... .
Demand deposits ............. .. .. .
Other liabilities .......... .. . . . . .
Capital accounts ...
. ........•
Decrease in:
U. S. Government obligations ..... . .. .
Cash assets . . .. . ......... . . .
Total sources . . .. ... .. . ...• . ... . .

Amount

Percent
of total

$ 490

45.9

March 4, 1958June 15, 1960
Amount

Percent
of total

April 12, 1961December 31, 1964
Amount

Percent
of total

$2,067
1,706
231
300

48.0
39.6
5.4
7.0

-4.5

$ 425
287
175
131

41.5
28.0
17.1
12.8

6

.6

$1,068

23.2
~
100.0

$1,024

100.0

$4,304

$ 778
(429)
(81)
(174)
(94)

. 72.8
(40.2)
(7.6)
(16.3)
(8.8)

$ 690
(162)
(54)
(231)
(243)

67.4
(15.8)
(5.3)
(22.6l '
(23.7

$2,655
(1,235)
(343)
(614)
(463)
79

48
159
248
123

14.9

Uses of funds
Increase in:
Loa ns (net) ....................... .
Commercial and industrial loans .
Real estate loa ns ..... . .
Consumer loans ..
All other loans ... . ..... . .
U. S. Government obligations ... . . . . . .
Obligations of states and
political subdivisions ......... . .. . .
Cash assets
.......... .
Other assets ... . . .
. ... .. . . •.. .
Decrease in demand deposits ..... . .. . . .
Total uses .. ... .. . .. . .. . ......•. .

80

7.5

125
85

11.7
8.0

$1,068

100.0

100.0

=

61.7
(28.7)
(8 .0)
(14.3)
(l0.8)
1.8

170
119
45

16.6
11.6
4.4

592
823
155

13.8
19.1
3.6

$1,024

100.0

$4,304

100.0

~

NOTE. - Details may not add to totals beca use of rounding.
SOURCE: Call reports for dates most nearly corresponding to business cycle reference dates as designated by the National
Bureau of Economic Research.

8

interest rates paid, increased sensitivity of the
public to rate changes, and development of the
negotiable time certificate of deposit as an imPOrtant money market instrument were major
factors contributing to the mounting importance of interest-bearing deposits at member
banks in the District.

~ Contrast to the two prior expansionary

larger proportion of high-yielding assets in their
portfolios. Real estate mortgages became a
more important outlet for funds, and taxexempt state and municipal obligations were
purchased in large volume. While declining
as a percentage of total funds used, consumer
loans absorbed a far greater dollar amount of
bank funds than in other past periods.

per~ods, the growth of time and savings deposits

durmg the 1961-64 period was accompanied by
a sharp rise in demand deposits, which ac~Ounted for almost 40 percent of the increase
1Q bank funds . During the 1958-60 period, demand deposits supplied only 28 percent of total
bank funds; in the 1954-57 period, a decline in
these deposits absorbed funds. The growth in
deposits during the 1961-64 span of the current
economic expansion was supported by a monetary
I . policy which remained basically stimuattve throughout the period. Due to the pres~nc~ of inflationary pressures, the two previous
yclical upturns were accompanied by a monetary policy designed to limit the growth in bank
deposits.
While providing funds to meet rising credit
?emands, the inflow of time and savings depos~s . created problems for bank management,
hlch had to find profitable outlets for these
relatively expensive funds. This problem was
compounded by the fact that the demand for
Commercial and industrial loans, which constitute the principal outlet for bank funds, was not
~s strong in relation to the inflow of funds as it
ad ?een in some past periods of economic expansion. Funds channeled into business loans
~ccOunted for about 29 percent of the increase
; ~otal bank .funds during the 1961-64 interval.
hiS proportion was greater than in the 1958~o expansion but was significantly less than the
o percent recorded for the 1954-57 period.
b ~o compensate for a rather disappointing
USlness loan demand and to improve earnings,
~ember banks in the District modified their
oan and investment policies to incorporate a

trends in bank pro fits
Although increasing in dollar amount, profits
of member banks in the District, whether computed before or after taxes, have declined substantially since 1961 in relation to both bank
assets and capital accounts. Net profits as a
proportion of assets fell from 0.74 percent in
1961 to 0.65 percent in 1964. During this same
period, the ratio of net profits to capital accounts declined from 8.8 percent to 7.8 percent. Diminishing profitability was recorded at
all sizes and classes of banks.
The sharp rise in bank expenses, rather than
the reduction in revenues, was largely responsible for pressure on bank profits at District
Member bank assets, expenses, and revenues rose at more rapid rates during the
1961-64 span than in the two prior periods
of economic expansion • .•
ELEVENTH FEDERAL RESERVE DISTRICT
(AveroQI onnuol rot .. ol lncrlOIl)

PERCENT

16

D
14

o

r--

REVENUES
EXPENSES
ASSETS

12

r-

r-

:-"'

-

0

.",

r-

8

6

4

2-

1954-57

D

n

1958-60

1961-64

business review / april 1965

9

Until the current cyclical expansion, increased rates .of earnings on member bank
assets in the Eleventh District have been
associated with rising economic activity in
the Nation .•.
PERCENT

BILLI ONS OF DOLLARS

1. 5 5

650

1. 45

590

1.3 5

530

1 25

1.15

1956

1958

1960

1962

SOURCES: U.S,O,porlm,nl 01 Comm,ru.
F,d,ral R.urn Bonk 01 0011111,

banks during the 1961-64 period. Operating
expenses as a proportion of total operating revenue rose 6.7 percentage points during the
period to a level of 71.0 percent in 1964. From
1954 to 1957, this ratio increased only 1.7 percentage points; and between 1958 and 1960,
the proportion declined fractionally.
Rising interest costs, associated with the inflow of time and savings deposits and with
higher rates paid, were the major factor contributing to the sharp increase in bank costs
during the 1961-64 period. As a proportion of
interest-bearing deposits, interest expense rose
from 2.58 percent in 1961 to 3.30 percent in
1964. This upward trend generally followed the
changes made in regulation Q by the Board of
Governors of the Federal Reserve System in
January 1962, July 1963, and November 1964
to allow member banks to pay higher interest
rates on time and savings deposits.
Bank revenues in the 1961-64 period rose
more rapidly than in the other two expansionary periods. Interest earnings on loans and dis-

10

counts - the most important source of revenue
to member banks - increased at an annual
rate of 12 percent in the most recent period,
compared with 11 percent in the 1958-60 expansion . The 1961-64 advance was associated
with increases in loan volume and higher rates
of earnings. Interest received from loans as a
proportion of outstanding loans rose from 5.88
percent in 1961 to 6.18 percent in 1964. Moreover, fees and other charges levied on borrow~rs rose at a very rapid pace. During the
previous periods of economic expansion, fees
and charges on loans declined.
Earnings from investments have become an
increasingly important source of bank revenue
in recent years. This development is largely
the result of the growing prominence of state
and municipal obligations in bank portfolios.
Revenue from these securities rose at an annual
rate of almost 23 percent from 1961 through
1964. The rate of increase in revenue from
U. S. Government obligations fell below that
recorded for the other two periods, due principally to the relatively moderate increase in
interest rates since 1961. Holdings of these
securities receded only modestly. From February 1961 to December 1964, 91-day Treasury
bill rates rose 1.42 percentage points to 3.84
percent. This increase compares with gains of
about 2.20 percentage points in the two previous cyclical expansions.
The failure of bank revenue to keep pace
with expenses during the 1961-64 period resulted in a sharp decrease in the rate of growth
of bank profits at District member banks. Net
income increased at an annual rate of only
slightly in excess of 2 percent during the
period, compared with rates of 8 percent in the
1958-60 period and 5 percent in the 1954-57
interval.

costs and revenues in 1964
Member bank operating statements for 1964
generally mirrored a continuation of develop-

ments which have affected bank profits
throughout the current cyclical expansion.
Pressure on profits stemming from rising interest costs remained great during the year;
and, as in other past years, banks sought to
COver these costs by channeling funds into more
profitable assets. Net current operating earnIngs expanded at a slightly faster pace last year
than during the 1961-64 span of the current
Cycli~al expansion, principally because of the
levelmg off in the upward trend in bank
expenses.
The II-percent rise in current operating revenue in 1964 was little different from that of
other recent years. Over three-fourths of the
?ollar gain was accounted for by greater earnlU.gs on loans and discounts, partly associated
With a $1.4 billion expansion in loan portfolios.
Rates of earnings on loans, as well as fees and
charges, also advanced in 1964.
Revenue from investments accounted for almost one-fourth of the total revenue of District
~ember banks in 1964. Interest earnings on
. S. Government securities declined nearly 2
percent, as a $185 million reduction in holdings
of these obligations more than offset the in~:as~d revenues accruing from higher yields.
f rnmgs from non-Government security port~lios, however, rose about one-fourth from
t e 1963 level. Service charges on deposit ac-

counts, which rank just below interest on loans
and investments as a source of bank revenue,
advanced almost 8 percent during 1964 to a
level of $27.7 million. This rate of advance is
somewhat greater than the average rate of gain
over the 1961-64 period. Trust department
revenue, which has been gaining in importance
at District member banks in recent years, rose
further during the year.
Total expenses of member banks advanced
sharply during 1964, but the rate of increase is
less than the average for the 1961-64 period.
Interest costs rose 23 percent during the year
to become the largest single item of cost to
member banks. This rise, however, was about
10 percentage points below that registered for
the 1961-64 period. Salaries and salary-related
expenses trended upward at about the same
rate as in other recent years.
Net income before taxes of member banks
receded about 3 percent during 1964, due principally to a substantial increase in losses,
charge-offs, and transfers to valuation reserves.
Because of this reduction and the lower rates
of taxation, taxes on income declined almost
15 percent; partially reflecting this decline, net
income of member banks showed a 4.8-percent
increase.
DON L. WOODLAND
Financial Economist

business review / april 1965

11

dist,.ict highlights
The negotiable time certificate of deposit in
recent years has become an increasingly important financial instrument in the Eleventh Federal Reserve District, as well as in the Nation.
In an effort to appraise the development of this
money market instrument, the Federal Reserve
banks recently conducted the fourth quarterly
survey of negotiable certificates of deposit in
denominations of $100,000 or more outstanding at weekly reporting member banks.
The outstanding negotiable time certificates
of deposit as reported by the respondent banks
in the Eleventh District aggregated $970.8
million on February 17, 1965. This level represented a gain of $75 .2 million, or 8.4 percent,
over the volume recorded for November 18,
1964, the previous survey date. From the first
survey, based on data for May 20, 1964, to the
most recent one, there was a 5.9-percent advance in the level of negotiable time certificates.
Results of the latest District survey show
that the maturity distribution of certificates of
deposit is heavily concentrated in the near-term
area. Slightly over one-half of these deposits
fall due within 3 months, and over 80 percent
mature within 5 months. This maturity distribution is quite similar to that indicated by each
of the three previous surveys.
The seasonally adjusted index of industrial
production in Texas reflected a gain of 1.4 percent in nondurables and durables production
during February. Weakness in the mining sector, however, limited the month-to-month gain
in the total index to 0.7 percent. In the durable
goods sector, output gains were recorded in the
furniture and fixtures, primary and fabricated
metal, and machinery industries. The February
advances in the primary metal and machinery

12

industries resulted partially from the resumption of normal production schedules after labor
difficulties in January. Broadly based gains
were registered in the nondurables sector in
February, especially in the printing and publishing and textile industries. February crude
oil output in Texas slipped, however, from the
January level.
Total nonagricultural wage and salary employment in the five southwestern states advanced 0.3 percent from January to February,
reaching a level of 4,976,300 persons. This advance reflected fractional employment increases
in both the manufacturing and the nonmanufacturing sectors. However, employment in
trade, construction, and mining registered
downturns in February. Employment in the
five states posted a strong 3.8-percent gain
over the same month in 1964, with strength
evident in both the manufacturing and the nonmanufacturing sectors. The gain from February
last year to February 1965 reflected an advance
of 10.5 percent in construction employment
and an increase of 5.2 percent in service
employment.
After gaining for 6 consecutive months,
daily average crude oil production in the
Eleventh District dipped 1 percent in March to
a level that was 2 percent higher than a year
earlier. The decline from February is attributable to decreases in Texas and northern Louisiana, as crude oil output in southeastern NeW
Mexico was relatively unchanged. A smaller
allowable in Texas contributed to the slower
rate of production in the State. In northerll
Louisiana, the month-to-month decrease reflected, in part, some buyer prorationing in the
area. At mid-March, inventories of crude oil
stored aboveground in the District were 5 percent less than a year earlier.

f A March 1 survey of prospective plantings
or 1965 shows that southwestern farmers i,ntend to seed about 27 million acres to springplanted crops, or 3 percent less than the acreage planted to these crops in 1964. According
to the U. S. Department of Agriculture, there
~re some noticeable shifts among crops in
965. Decreases in acreages of cotton, corn,
oats, barley, and peanuts more than offset increases in those of sorghums, Irish potatoes,
~weet potatoes, soybeans, and sugar beets.
creages of hay, rice, and flaxseed are exP:cted to remain stable. Farmers in the Distnct states plan to seed 7.6 million acres to cotto .
l~ ~ 1965 - moderately below last year's
P ntIngs. Of the spring-seeded crops, soy-

beans lead in acreage expansion, followed by
sorghums.
The 1964 citrus fruit crop in the District
states is estimated at 7.8 million boxes. An
output of this size would be more than onefourth above the previous year but one-fifth
below the 1958-62 average. Indicated production of grapefruit is 32 percent above the 1963
outturn, and the orange crop is up 19 percent.
Realized net income per farm in 1964 declined in each of the five District states except
Oklahoma. The figures ranged from $2,448 per
farm in Oklahoma to $19,363 per farm in
Arizona. The realized net income per farm in
Texas amounted to $3,877 in 1964.

AVAILABILITY OF FEDERAL OPEN MARKET COMMITTEE MINUTES
Minutes of the meetings of the Federal
?pen Market Committee from the time of
Its organization in 1936 through the end
of 1960 are being made available by the
Federal Reserve System for the use of
s~holars and other interested persons. To
t at end, the Board of Governors has transferred to the custody of the Archivist of the
United States the original signed copies
of the minutes for these years.
Although the Federal Reserve System
available a great deal of inormation on its actions and operations,
th~s is the first time that official records of
thl~ type relating to monetary and credit
pollcy actions have been released to the
~Ub1ic for research or historical studies.
hese materials increase significantly the

~as long made

sources of information regarding Federal
Reserve policy decisions over the years.
Copies of the minutes transferred to National Archives are available for inspection and use at each Federal Reserve bank
and branch, as well as at the Board's offices in Washington, D. C.
In addition, the National Archives is in
a position to furnish complete microfilm
copies (16 rolls of 35 mm. film, either
positive or negative) at a cost of $55, including shipping charges. The National
Archives will also furnish prints of individual pages at 20 cents each. Requests for
these materials should be sent directly to
that agency, Eighth Street and Pennsylvania Avenue, N. W., Washington, D. C.
20408 .

business review / april 1965

13

PER JACOBSSON FOUNDATION LECTURES

On November 9, 1964, in Basle, Switzerland, the Per Jacobsson Foundation
presented the inaugural lectures of a series
to be continued in future years and other
cities. The Foundation thus honored the
late Managing Director of the International
Monetary Fund and began to carry out its
principal purpose, which is to sponsor and
publish regularly lectures on international
monetary affairs by recognized authorities.
The first two lectures, both on the subject of "Economic Growth and Monetary
Stability," were given by Maurice Frere,

former Governor of the National Bank of
Belgium and President of the Bank for
International Settlements (viewing the subject from the standpoint of a developed
country), and by Rodrigo G6mez, Director
General of the Bank of Mexico (the view
from a developing country) .
The Foundation has now published the
texts of these lectures in English, French,
and Spanish and will make copies available
to interested persons. Requests for copies
(indicating the language desired) should
be addressed to:

THE PER JACOBSSON FOUNDATION
INTERNATIONAL MONETARY FUND BUILDING
WASHINGTON,

14

D. C. 20431

lie,.,
par
ballJ~

16

The Prosper State Bank, Prosper, Texas, an insured nonmember bank
located in the territory served by the Head Office of the Federal Reserve Bank
of Dallas, was added to the Par List on March 15, 1965. The officers are : U. N.
Clary, Chairman of the Board; Ralph C. Boyer, President; Charles J. Winikates, Vice President; Mrs. M. L. Boyer, Cashier; and Mrs. Mary Keith,
Assistant Cashier.

STATISTICAL SUPPIlEMENli
to the

BUSINESS REVIEW

April 1965

FEDERAL RESERVE BANK
OF DAllAS

CONDITION STATISTICS OF WEEKLY REPORTING
MEMBER BANKS IN LEADING CITIES

RESERVE POSITIONS OF MEMBER BANKS
Eleventh Federal Rese rve District

Eleventh Federal Reserve District

(Averages of daily flgures . In thousands of dollars)

=

(In thou sands of dol/ors)
Mar. 31,
1965

Feb . 24,
1965

Apr. I,
1964

Gross loans .... . ... ... ............ .........

4,648,285
82,887
4,73 1,172

4,528,818
82,026
4,610,844

4,273,483
76,297
4,349,780

Commercial and industrial loans.. ..... .. .....
Agricultural loans... . . . ............... . ....

2, 188,4 13
58,537

2,156,015
60,835

2,057,207
46,335

4,274
46,165

20,303
39,036

274
78,348

2,4 13
291,126

2,396
282,280

3,458
256,558

129,357
276,736
134,923
9,173
387,604
1,202,451
2,107,658

119,858
259,840
106,328
6,431
378,234
1,179,288
2,098,795

11 1,413
264,927
133,383
2,418
344,954
1,050,505
2,113,266

1,337,390
143,975
0

1,327,570
109,553
0

1,379,497
107,541
6,647

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

176,777
625,124
391,514
770,268
77 1,084
514,640
3,106
63,623
544,510
288,883

180,323
608,678
429,0 16
771,225
594,623
45 1,503
3,193
65,776
539,345
282,385

125,075
741,660
398,574
733,769
670,394
497,908
3,701
58,926
563,722
238,605

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

8,94 1,789

liABIlITIES AND CAPITAL ACCOUNTS
Total deposils .•••••.. • •.•••..•.••..••..••••

7,840,900

7,5 17,23 1

7,347,621

4,928, 115
3,209,37 1

4,644, 121
3,152,292

4,749,151
3,120,147

5,661
176,322
328,490

5,747
146,902
282,104

2,472
162,725
277,936

1,1 08,075
18,131
82,065
2,912,785

966, 102
25,518
65,456
2,873,110

1,096,572
13,437
75,862
2,598,470

1,283,212
1,224,814

1,256,512
1,207,789

1,130,960
1,096,439

500
3,594
389,357

500
3,594
393,625

500
3,899
357, 168

Capital accounts ............ . .. . ............

8,868
2,440
214,701
155,403
730,785

8,790
2,300
168,680
150,35 1
728,176

7,104
2,400
229,268
142,524
700,592

TOTAL LIABILITIES AND CAPITAL ACCOUNTS

8,941,789

8,564,438

8,420,005

Item

Ilem

4 week s end ed

4 weeks end ed

4 weeks endod

Mar. 3, 1965

Feb. 3, 1965

Mar. 4, 196:

603,244
561,957
41,287
598,901
4,343
31,072
-26,729

6 14,626
571,122
43,504
609,822
4,804
7,929
-3,125

58 1,574
541,684
39,890
575,316
6,258
13,795
-7,537

589,755
454,404
135,351
551,283
38,472
973
37,499

600,778
460,320
140,458
556,674
44, 104
266
43,838

564,694
440,894
123,800
525,702
38,992
595
38,397

1,192,999
1,016,361
176,638
1,150,184
42,8 15
32,045
10,770

1,21 5,404
1,031,442
183,962
1,166,496
48,908
8,195
40,713

1,146,268
982,578
163,690
1, 101,0 18
45,250
14,390
30,860

RESERVE CITY 8ANKS
Tota l reserves held •.....•.. .. •

ASSETS
Net loans . . ...... ....................... . ..

Valuation resorvo •. .. ............. ..... ... . ..

Loans to brokers and dealers for
purchasing or carrying:

U. S. Government securities .. ..... . ...... ..
Other securities ........ .. ...... .. ... ....
Other loans for purcha sing or carrying:

U. S. Government securities ..... . ... ... .. ..
Other securities ........... . .............
Loans to nonbank flnanciol institutions:

Sales flnance, personal finance, etc ...... . ...

Olher ••..•••..••.•.•• . . •• •••.... ..• ...
Loans to domestic commercial banks.. .........
Loans to foreign banks .• ....... ......... . . .
Real estate loans . ... ......................
Other loans ..•• •.•••.•• . .. ... . .... .......
Total Investments ............. . ..............
Totol U. S. Government securities .. . ..... .....
Treasury bills.................. ... . .....
Treasury certiflcates of indebtedne ss ..... . ..
Treasury notes and bonds moturing:
Within 1 yeor ...•....................
1 to 5 yeors •••........ .... . ...... .. . .

After 5 years •••...•....•... • ... •...••

Other se cu rities ••......•••••• ••.•. .•.•....

Total demand deposits ........ .. ....... ....
Individuals, partnerships, and corporations .•..
Foreign governments and offlcial institutions,
central banks, and International institutions ..
U. S. Government . . . . . . . . . . . . . . . . . . .•. ..
States ond political subdivisions ............
Banks in the United States, including
mutual savings banks . ..... . .. . ... . . ....
Banks in foreign countries ............... ..
Certifled and offlcers' checks, etc ...........
Total time and savings deposits ••... . ••......
Individuals, partnerships, and corporations
Savings depo sits ....•. ••.... . .........
Other time deposits . . ..... .... .........
Foreign governments and offlcial institutions,
central banks, and international institutions ..
U . S. Government, including postal sa ving s ...
States and political subdivisions •.. .. .. .... .
Banks in the United Stotes, including
mutual savings banks•••.... .... .. ......
Banks in foreign countries ..... .. .. ... .....
Bill s payable, rediscounts, etc ..................

All other 110 b lIilies •..• • •..••••...•...•...••..

8,564,438

With Federal Reserve Bank .•••
Currency and coin ..... . .....
Required reserves .. . ..........
Excess reserves ...... .. ...... .
Borrowings . ...... ............
Free reserves . ........... . .•. .

COUNTRY 8ANKS
Total reserves held . ... .. ......
With Federol Reserve Bank ....
Currency and coin ... . .... . ..
Required reserves .............
Excess reserves . ....... . .. .. ..
Borrowings . . ........... . . ....
Free reserves . . .... ... ... . . . ..

All MEMBER BANKS
Totol reserves held .. . ... . . ....
With Federa l Reserve Bank ....
Currency and coin ... ........
Required reserves . . ...........
Excess reserves ...............
Borrowing s.... ....... .. ......
Free reserves......... ........

GROSS DEMAN D AND TIME DEPOSITS OF MEMBER BANKS
Eleventh Federal Reserve District
(Averages of doi ly flg ures. In millions of dolla rs )
GROSS DEMAND DEPOSITS

-

Total

city bonks

Country
banks

Tota l

city bonks

CountrY
banks

1963: February .•.
1964: February .• .
Septemb er.

8,354
8,359
8,530
8,582
8,683
8,852
9,042
8,582

4,007
3,887
4,090
4,098
4,120
4,2 13
4,271
4,006

4,347
4,472
4,440
4,484
4,563
4,639
4,771
4,576

3,706
4,440
4,689
4,627
4,655
4,713
4,88 1
4,984

1,811
2,2 17
2,354
2,274
2,269
2,288
2,399
2,438

1,895
2,223
2,335
2,353
2,386
2,425
2,482
2,546

Res erve

October ...
November . .
Dec ember ..

1965: January •.•
February ...

Reserve

---

-

COND ITIO N STAT ISTI CS OF ALL MEMBER BA NKS
Eleventh Federa l Reserve District
(In millions of dollars)

Item

Feb. 24,
1965

Jan. 27,
1965

7,773
2,592
1,606
933
198
1,029
5
671
344

7,654
2,65 1
1,566
976
199
1,064
6
725
464

~
Feb. 26,
196:-

ASSETS
Loans and di scounts•• . .•.... . .... . ......
U. S. Government obligations ••...........
Other securities . •...... . .... . ... . . .. ...
Reserves with Federal Re serve Bank •• ••....
Cash in va ult e .•....•.. . . .. . .. ....... ..
Balance s with banks in the United States • •••
Ba lances with banks in foreign countries e ....
Ca sh items in process of collection • .. . . .. ..
Other assets e ..• •.•.......•....•....••.

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

15,15 1

15,305

1,199
7,290
5,019

1,276
7,42 1
4,927

Borrowings e •.... ....••................
Other lia bilities e • •. . •. .. . . ... . . •. . . . ...
Tota l capital accounts e •......... . ..... "

13,508
171
188
1,284

13,624
197
'207
1,277

TOTAL liABILITIES AND CAP ITAL
ACCOUNTSe •.•...•.••.•..••....••

15, 151

15,305

6,955
2,697
1,453
916
182
10
1,

1

-

707
387

~

lIA81l1T1ES AND CAPITAL ACCOUNTS

(In thousands of dolla rs )

Demand deposits of banks ...............

Other demand deposi ts ••• •.. . ••• .• •.• . ..
Tim e d e posits ••. . .....................•

Item

Mar.31,
1965

Feb. 24,
1965

Apr. I,
1964

Total gold certiflcate reserves .. •••••• . ...• ••
Discounts for member banks •...............
Other discounts and advances . . ... . ...... . .
U. S. Government securities .•..... . .. .....•.
Total earning assets ..•............•.......
Member bank reserve deposits ...•..........
Federal Reserve notes in actual circulation .....

374,857
1,770
870
1,627,078
1,629,7 18
908,883
1,070,710

546,32 1
1,645
2,610
1,446,760
1,45 1,015
933,288
1,069,106

544,671
1,777

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

o

1,348,458
1,350,235
921,333
956,759

e-

2

-=

TIME DEPOSITS

Dote

8,420,005

CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS

-

Estimated.

1,205
7,136
4,486

-

12,827
158
197
1,22 1

-=:::::.--~

BANK DEB ITS, END-Of-MONTH DEPOSITS, AND DEPOSIT TURNOVER
(Dollar amounls in thousands, sea sona lly adlusted)
DEBITS TO DEMAND DEPOSIT ACCOUNTS'
DEMAND DEPOSITS'
Percent change
Annual rate
of turnover

Feb. 1965 from
February

1965
1965r
(Annual-rate basis)

Stand a rd me tropolitan

statistica l area

ARIZONA
Tucson
LO U ISIA~~" "" """ """ "" """ """ ' " •

Feb.
1964

2 months,
1965 from
1964

January

Jan.

1965

Feb . 28,
1965

February

January

Fobruary

1965

1965r

1964

3,925,728

3,819,8 16

165,816

23.6

22.9

22.8

NE~re~~~f~~ : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : :

1,648,428
4,523,208

1,709,940
4,517,820

-4
0

21
3

23
2

73,027
198,961

23.2
22.9

24. 1
22.8

20.5
21.0

Roswell'
TEXAS
• ..• " ..•••••.•••.••••••••••••••••••••

596,400

610,236

-2

-7

-7

31,611

18.8

19.0

17.6

1,628,232
3,819,192
3,796,944
4,340,304
1,292,544
2,920,980
307,620
58,903,584
4,964,316
12,110,556
1,809,396
50,713, 128
476,616
3,061,428
1,728,216
1,104,588
756,144
10,034,244
979,500
1,52 1,168
1,876,584
1,960,11 6

1,806,372
3,985,476
3,593,832
4,470,408
1,323,6 12
2,969,400
292,644
51,923,016
4,614,768
11 ,762,280
1,770,180
51,84 1,128
474,384
3,861,708
1,79 1,720
1,004,424
78 1,536
9,983,532
947,628
1,491,864
1,848,168
1,863,180

-10
-4
6
-3
-2
-2
5
13
8
3
2
-2
0
-21
-4
10
-3
1
3
2
2
5

5
12
6
7
8
6
14
23
12
9
-1
8
9
-9
6
4
3
12
-4
14
14
8

6
12
6
8
6
3
17
22
5
6
0
14
11
-4
7
2
4
10
-2
13
11
8

90,587
135,996
162,062
198,053
51,847
137,194
25,998
1,548,336
193,525
481 ,500
83,220
1,722,189
27,539
137,949
119,729
62,918
51,461
477,116
48,792
78,670
100,541
11 0,625

17.9
28.0
22.4
21.8
25.0
21.2
11.6
38.2
25.0
25.2
21.3
29.4
17.3
22.1
14.4
18.4
14.8
21.2
19.6
18.9
18.7
17.2

19.7
29.1
20.2
22.5
25.0
21.5
10.5
33.8
23.3
24.7
20.1
30.2
16.6
27.0
15.2
17.5
15.4
21.2
19.2
18.7
19.0
15.8

16.7
25. 1
20.7
21.4
23.6
21.4
11.2
32.1
24.0
23.4
21.1
29.1
16.1
24.8
15.7
18.3
14.5
20.3
20.7
17.8
1B.6
15.7

$180,799, 164

$ 175,059,072

12

13

$6,515,262

27.7

26.9

25.7

Monroo

Abilene

~~~[~I~~
:P:: :::::::::::::::::::::::::::::::::
8roYtns~~,~.H~r~~thur
• •...• . . ..••..••..••••.•••••

Corpus Ch"
gon-San 8enlto ••. • ..•.•••.••..•••
CorSicana i ,sh •••...•. . .•......•....•.....•••..•
Dallas
'" ....... . . ........•....••...•••.••

TOl a l_26 centers
_
.. . . . . ... ... . . ..... .. ............
1 De
.
:!

of individua ls partnerships, and corporations and of stotcs and political su bdivisions .
OUnly basis.
'

C

r-

pOSIts

Revised.

DEPARTMENT STORE SALES
IPorcentage change In re lall va lu e)

)NDEXES Of DEPA RTMENT STORE SALES
Eleventh federal Reserve District

February 1965 from
2 months,

(Da ily average sales, 1957·59 = 100)

=

-

Da le

Seasonally
adiusted

Unadlusted

125
123
117
124
129
131
125

91
118
120
142
223
102
91

196s.1af~1y:j< iii iii iii iii iii iii ii
nuary

~bruary::::: ::: :: :: :::::: : ::: ::

February

1965

Area

1964: February

.

January

Total Elevent h District • •••.. •••
Corpus Ch risti • •••.• ••••• . • •• .
Dallas •• •• • • • •••. . ••••• . • • •.
EI Paso ••••.•• . •• •••••••• ..•
Houston • • ••• • •• • • • ••••• • • • •

So n Antonio •. .•••• • • ••.. •• ..
Shreveport, la . •• • •• •• . •••.. .
Waco ••• • .• •• . .. •••• • . •• .. •
O ther cities . • • . • .••.....•...

1964

-14
-4
10
- 1
- 16
-21
- 16
-9
-10

-4
-13
-6
0
3
-5
-2
-8
-4

1965 from
1964
-4
2
0
8
2
2
-3
0

NATIONAL PETROLEUM ACTIV ITY IND)CATORS
DAILY AVERAGE PRODUCTION OF CRUDE OIL

=-

(Seasonally adl usted Inde.es, 1957·59 = 100 )

(In tho usands of barrels)
Percent change from

: - - - . Area
ELEVE
T NTH DISTRICT

eXas...
• •••. . "
Gulf C~~ ·t········ · ···
West Tox~;: " """"

Easl Te. ( •.•.••••.•
Pan hand'lS proper) • ••••
e
Rest of St i ' .... " ....

SOutheast a e . •. . ...•••
Northern L~n. ~ ew Me xico ..

OUTSIDE
ulS'ana •• • ••• • •
UNITED 5 ELEVENTH DISTRICT
____TATES • • . •• • ••• •..

Feb.
1965p
3,303.8
2,804.4
536.9
1,245.8
113.2
103.5
805.1
309.6
189.8
4,553. 1
7,856.9

Jan.
1965p
3,271.3
2,786.5
537.5
1,237.2
113.1
103.3
795.4
294.5
190.3
4,562 .7
7,834 .0

Sou-:re llminary.
CES · Am .

. U ~ncQn Petroleum Institute.
• . Burea u of Minos.

Fedora l Reservo Ba nk of Da llas.

Feb.
1964

1965

Feb.
1964

3,171.7
2,729.2
561.3
1,193.4
11 5.1
97.9
761.5
280.8
161.7
4,569.5
7,741.2

1.0
.6
-.1
.7
.1
.2
1.2
5.1
- .3
-.2
.3

4.2
2.8
-4.4
4.4
-1.7
5.7
5.7
10.3
17.4
-.4
1.5

Jan .

February

J anuary

February

1965 p

1965p

1964

111

110

110

11 7

11 6
130
105
106
11 2

116
137
109
94
111

114
143
121
70
11 2

108
137
117
84
109

In d icator

CRUD E O IL RUNS TO REFINERY
STILLS (Dally averag e). • • • • • • • • • • • . • •
DEMAND (Dally averago)
Gasoline. . . . .. .. ......... ..... .....
Kerosene . . . • • • . . . . • • . . • • • • . . . . • . . •

14 1

Distillate fuel
Residual fu ol
Four reflne d products. • • • • • . . . . . . . .
STOCKS (End of monl h)
Gasoline. . ... . . .. ... . . . . ...... . .. . .
Kerasone. • • • • . • . . . . . • • • • • • • • . . • • • •
Distillate fuel oil. .. . . . . • • . . • • . . . • • . . .
Residua l fue l

119
10 1
115

Four reflned p roducts . • . . . . . • • • . . . •

11 0

011.. .. . . . . . . . . . . . . . . . . .
011....... ... ...........

011..... .. . . . . .... . . . . . .

114
148
113
68

p - Preliminary.
SOURCES, American Petroleum Instit ute •
U. S. Bureau of Mines.
Federa l Reserve Ba nk of Da llas.

3

CITRUS FRUIT PRODUCTION

NONAGRICULTURAL EMPLOYMENT

(I n thousands of boxes)

Five Southwestern Stotes 1

State and crop

Indicated
1964

1963

1958-62

2,000
2,800

2,200
3,210

1,254
2,358

10

15

205

240
500

2,168
3,794

=

Average

ARIZONA
Orange s ................. .
Grapefruit .. .. .. ... . .. .. . .

LOUISIANA

-

Perce nt change

Fe b. 1965 from

Number of persons

Feb.
1965p

1965

Feb.
1964r

1965

Feb.
1964

wage and sa lary workers ..
Manufacturing . .. . ... . ...
Nonmanufacturing . . ......
Mining . ........ . .... .
Construction . . . ........
Transportation and

4,976,300
873,400
4,102,900
233,900
332,900

4,962,400
870,100
4,092,300
234,000
336,000

4,793,300
843,700
3,949,600
228,400
301,300

0.3
.4
.3
-.1
-.9

3.8
3.5
3.9
2.4
10.5

public utilities • •••... •
Trade • .••••..••••....

383,700
1,1 75,800
253,200
727,900
995,500

373,200
1,183,900
252,300
724,800
988,100

392,800
1,132,600
244,500
691,800
958,200

2.8
-.7
.4
.4
.7

_2.3
3.8
3.6
5.2
3.9

Type of employment

Jan.

Jan .

Total nonagricultural

Oranges .. .... .... .... .. . .

TEXAS
900
2,100

Oranges . . ............... .
Grapefruit ......... . . . ... .

SOURCE : U. S. Department of Agriculturo.

Finance .. • ..... .. .....
Service ............ . ..
Government . . . ..... . . .

VALUE OF CONSTRUCTION CONTRACTS
(In millions of dollars)

1

January-February
Area and type

FIVE SOUTHWESTERN
STATES' •••• • •••.•••••.•
Residentiol building •••. • • •
Nonresidential building ....
Nonbulldlng construction • •.

UNITED STATES • •• •..•••.••
Residential building • .•••.•
Nonresidential building ... .

Nonbuildlng construction ...

Feb.
1965

Jan.
1965

Feb.
1964

1965

1964

387
149
97
141
3,223
1,299
1,060
863

453
164
187
102
3,127
1,273
1,155
700

504
140
161
202
3,201
1,427
1,082
692

840
313
283
243
6,342
2,568
2,214
1,559

817
365
247
204
6,543
2,798
2,238
1,506

-

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

p - Preliminary.
r - Revised.
SOURCE: State employment agencies.

BUILDING PERMITS

;:::::::
VALUAT ION (Dollar amounts in thousands).-

1 Arizona, Louisiana, New Mexico, Oklahoma, and Texas.
NOTE. - Details may not odd to total s be cause of rounding ,
SOURCE: F. W . Dodge Corporation.

Percent change _____

Feb. 1965
NUMBER

from

Feb.
1965

Feb.
1965

2 mos.

506

1,035

$ 1,081

276

597

1,150

2,919

61
Amarillo ..• • ••
140
Austin ........
244
Beaumont .. . ..
282
Corpus Christl ..
339
Dallas . . . ... . . 1,550
EI Paso •..••• •
411
Fort Worth ••••
542
Galveston . . . . .
87
Houston . .. . .. 1,564
Lubbock ••••.•
182
Midland •••.••
74
115
Odessa . . . .. . .
Port Arthur ••• •
111
San Antonio .. .
845
Waco ........
183
100
Wichita Falls ••

135
300
551
457
694
3,210
766
1,105
187
3,342
367
160
214
203
1,853
380
203

1,685
3,573
3,422
2,104
2,731
14,813
4,258
4,331
291
26,352
4,174
7 10
683
385
4,303
2,035
545

2,408
7,491
7,183
5,060
4,8 10
25,607
11 ,594
8,894
640
45,440
7,043
3,233
1,241
704
8,072
3,931
2,231

Total-19 cities • • 7,612

15,759

$78,626

Area

INDUSTRIAL PRODUCTION

1965

2 mos.

Jon .

1965

1965

Feb.
1964

2 months,
1965 from

.-

1964

ARIZONA

(Seasonally adiusted indexes, 1957·59= 100)

Tucson . . .. ....

$

-53

-6 1

2

44

43
133
- 9
30
-9 -38
-29
30
31
62
37 -17
-42
7
-5
33
-17 -57
38
-6
45 -39
-72 -21
22
11
21 -37
14
10
7
12
-68 -53

15
_5
-45
61
_8
-20
84
0
-40
- 19
-29
_5
17
_58
_28
33
27

2, 150

LOUISIANA
Area and type of index

TEXAS
Totol industrial production •••.. •• •
Manufacturing .. . ...•.. • . • .••

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

Durable ••. •. ...••••••.• • •
Nondurable • •• ..••••••.•••
Mining •••• • .•••••••••..••••
Utilities • . •.. . •..• • ..........
p -

Feb.
1965p

Jan.
1965

1964r

Feb .
1964r

130.7
152.8
151.3
153.9
101.7

129.9
150.7
149.2
151.8
102.7

129.9
150.7
148.2
152.5
102.5

125.8
143.6
136.7
148.6
102.5

138.8
140.3
142.0
138.1
112.5
156.5

138.1
139.4
141.3
137.1
112.4
155.5

137.5
139.0
140.6
136.9
112.3
154.7

128.2
129.1
128.9
129.4
108.9
143.4

Preliminary.

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

4

Dec.

Shreveport ....

-35

TEXAS
Abi lene .. ... ..

$ 150,651

9

-8

-14

.....-/