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business
•
revIew

april 1969

FEDERAl RESERVE
BANK OF DALLAS

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

contents

moment of truth
for consumer credit . . . . . . . . . . . . . . . . . . . . . . . ..

3

district highlights . . . . . . . . . . . . . . . . . . . . . . . . . .. 14

'ROlnent of tl-uth
fOl- cOI,sumel- claedit
July 1, 1969, might well be called the molUent of truth for consumer credit. This is the
date the Federal Truth in Lending Act takes
effect.
What is truth in lending? Why do we have
it? How,will it work? These questions are being
asked more and more frequently as the effective
date of the act approaches. This is all to the
good; any program concerned with informing
the public, as this one is, needs a broad measure of public understanding if it is to succeed.
Beyond that, however, the Nation's creditors
have pressing reasons of their own to ask these
questions, for it will be largely up to them to
carry out the mandate of the act after July 1.
This article will go into those questionsthe whats, whys, and hows of truth in lending.
It will attempt to explain what truth in lending
is and what it is not. It will also examine the
new vocabulary which truth in lending will
superimpose on the field of consumer credit and
which may be the program's principal long-run
COntribution.

the program
To begin with, it might be well to set out in
general terms just what truth in lending is.
Essentially, it is a new Federal program intended to see that the consumer gets complete
and accurate information as to the cost of

credit. The program has three principal parts.
The first is disclosure. The act will require
creditors to give their customers certain cost
information - including, in most cases, the
annual percentage rate of the finance charge in connection with each extension of consumer
credit. The second is advertising, with the act
establishing rules to be followed in advertising
consumer credit. The third is rescission, a new
rule applicable mainly in home improvement
and second mortgage situations but actually
having much broader applicability; this part of
the program will give the customer three days
to rescind (that is, cancel) any consumer credit
transaction which involves a lien on his residence. The rescission rule will not apply in
most home purchase situations.
Having said what truth in lending is, it is now
necessary to say what it is not. It is not Federal
regulation of the terms of consumer credit contracts. Regulation of the terms is left to the
states. Creditors will continue to look to state
law to see how much they can charge for credit.
The theory of truth in lending is that, once the
terms of the contract have been decided, the
creditor must then go forward and make disclosure to the customer, using standardized
rules and concepts established by Federal law.
Of course, to predict that truth in lending
will have no effect on industry practices would

George C. Cochran, III, the author of this article on truth in lending, is Assistant
Counsel and Assistant Secretary of the Board of the Federal Reserve Bank of Dallas. H e
served as a member of the initial task force which was assembled by the Board of Governors of the Federal R eserve System to draft the truth in lending regulation.

business review/ april 1969

3

be a mistake. The likelihood is that it will. The
effect, however, will be indirect. Creditors will
change their practices to facilitate the mechanics of disclosure or to disclose more favorable
rates. As one example, many lenders now require the borrower to insure the collateral with
insurance purchased from the lender. After
July 1, some of these lenders may allow the
borrower to use a policy purchased elsewhere
in order to exclude the premium from the finance charge under truth in lending - a practice which, in turn, allows disclosure of a lower
rate. Strictly speaking, these lenders will not
be changing because truth in lending requires
it but because competition does. In actuality,
though, the rather subtle distinction between
direct and indirect effects on trade practices
will probably be overlooked more often than
not.

'for example, traditionally compute interest on
a monthly basis. BaTIks, on the other hand, tend
to use the add-on annual rate in their consumer
instalment loans. The typical state disclosure
law applies to one type of creditor and follows
the lending practices of that type. For this
reason, most of tlle state laws convey information to the public but do little to facilitate meaningful cost comparisons among different types
of lenders.
A new approach was taken in 1966. In that
year, Massachusetts enacted the first broadly
based truth in lending law, one which imposed
uniform disclosure across the entire spectrum
of consumer credit. By 1968, a handful of other
states had joined Massachusetts.

the reasons
Why do we have truth in lending? There are
a number of ways to approach tllis question.
One answer is that Congress has been increasingly concerned with consumer protection in
the last few years, and truth in lending is but a
logical continuation of this trend.
Other trends, however, have played a part.
One is the increasing tempo of legislation dealing with the problems of the disadvantaged.
Another is what appears to be a long-standing
congressional attitude that full disclosure legislation is inherently worthwhile on its own. As
these trends converged, the prospects for
Federal trutll in lending legislation improved
markedly.
This is not to say that disclosure legislation
in the field of consumer credit is a new idea, for
it is not. Virtually every state has long had one
or more disclosure laws on the books; and by
the early 1960's, such laws were proliferating.
As they did, a problem of fragmentation became
apparent. The consumer credit industry is
highly diversified, and each category of lenders
uses procedures uniquely its own. Credit unions,

The idea of a Federal truth in lending laW,
however, goes back even earlier. In 1960, thenSenator Paul H. Douglas of Illinois, along witb
a number of others, introduced the first Federal
truth in lending bill. Eight years were necessary
to obtain enactment, and, in the interim,
Douglas retired from the Senate. Others took up
his campaign, though, notably Senator WiIliaDl
Proxmire of Wisconsin and Representative
Leonor K. Sullivan of Missouri; and the bill waS
ultimately signed into law on May 29, 1968.
In the legislative process, a number of addi-

tional provisions were attached to the bill; the
Truth in Lending Act is actually Title I of an
expanded statute called the Consumer Credit
Protection Act.
What is truth in lending expected to accomplish? The proponents do not speak with a
single voice on this matter. One segment, perhaps the largest, talks in terms of permitting
the consumer to comparison-shop for credit.
To these advocates, the principal value of the
program is the creation of a uniform yardstick
by which the cost of consumer credit can be
measured.
Other proponents make the allegation, doculllented in numerous studies, that merchants and

the approach
Having run briefly through the whats and
whys of truth in lending, let us now turn to the
hows. A logical place to start is the question of
coverage. To which transactions will truth in
lending apply?
The answer is deceptively simple. Truth in
lending applies to any extension of consumer
credit made or arranged for by a creditor, unless one of the exemptions is applicable. The
difficulty comes in defining the terms. Here we
encounter the new truth in lending vocabulary,
which is expected by many to become a sort of
20th-century lingua franca for the consumer
credit industry. We also encounter a few surprises.
Consider first the definition of consumer
credit. It is defined as any extension of credit-

o
o
o

lenders in the ghettos tend to impose high
charges for credit and to disguise these charges
in various ways, such as costly "no charge for
credit" sales. These practices create the illusion
of easy credit to the ghetto dwellers but, in
reality, keep them mired in poverty. It is hoped
that truth in lending, by bringing the practices
into the open, will discourage some of the
higher charges for credit and will make ghetto
residents more aware of how much of their income is being siphoned off to pay for credit.

To an individual;
Primarily for personal, family , household,
or agricultural purposes; and
For which a finance charge is or may be
imposed, or which is payable, by agreement, in more than four instalments.

One surprise in this definition is that agricultural credit is included. Another is that consumer credit is not limited to instalment credit.
If a finance charge is or may be imposed, the
transaction is covered whether payable singly
or by instalments. When there is no stated
finance charge, a transaction is covered if there
is an agreement that it will be payable in more
than four instalments. The more than four instalments rule is intended to bring "no charge
for credit" sellers under the Truth in Lending
Act.
A third surprise is that real estate credit is
included. In a number of areas, by the way,
real estate credit is given special treatment, and
these will be mentioned from time to time in
the remainder of the article.

business review/ april 1969

5

A second nece~sary definition is the one for
creditor. A creditor is a person or firm that
regularly extends or arranges for consumer
credit in the ordinary course of business. The
surprise here is the inclusion of persons who
arrange for credit. For example, many banks
have arrangements whereby an automobile
dealer writes up loan papers on automobile
credit extended by the bank. More than likely,
the dealer will receive a fee for this service.
Under truth in lending, both the dealer and the
bank are creditors, and both are responsible for
disclosure.
The exemptions referred to earlier are:
• Credit to organizations (including partnerships and corporations) and governmental units.
• Credit for business and commercial purposes (for truth in lending, agriculture is
not considered a business purpose).
• Credit in excess of $25,000 except when
secured by real estate (when secured by
real estate, consumer credit is covered no
matter what the amount is).

II
ture which will oversee the program. The Board
of Governors of the Federal Reserve System
was directed to write implementing regulations,
and the result is regulation Z, which was is,Sued
in February of this year and constitutes the
principal reference document for truth in lending compliance. The Board, however, was not
given actual supervision of the entire program.
Congress divided the day-to-day supervisory
responsibility among several agencies, thereby
utilizing much of the existing Federal supervisory structure.

supervision

The three-way split of Federal banking supervision among the Comptroller of the Currency (national banks), the Federal Reserve
System (state member banks), and the Federal
Deposit Insurance Corporation (insured nonmember banks) was preserved for truth in lending. The Federal Home Loan Bank Board will
oversee the program at insured savings and loan
associations. Other agencies involved are the
Bureau of Federal Credit Unions, the Civil
Aeronautics Board, the Interstate Commerce
Commission, and the U.S. Department of Agriculture. For all creditors not otherwise supervised - and this is doubtless the majoritythe Federal Trade Commission has responsibility. Thus, FTC will supervise retailers, finance
companies, mortgage companies, and a host of
others.

Before leaving this general area, some attention should be given to the supervisory struc-

The supervisory agencies will not be without
teeth in their enforcement efforts. Most will

• Securities and commodities accounts with
a broker-dealer registered with the Securities and Exchange Commission.
• Bills for public utility services, where the
tariff and the discounts or penalties are
under some form of governmental surveillance.
To summarize coverage, truth in lending
slices out for itself a much broader segment of
the credit industry than has up to now been
thought of as "consumer instalment credit" and
will require disclosure of credit information by
many who have not up to now thought of themselves as being in the credit business.

6

have the full panoply of enforcement tools, such
as the right to issue cease and desist. orders,
obtain court injunctions, and subpoena records.
Criminal prosecution is possible for willful and
knowing violations. The public, too, may play
a significant part in enforcement. The act makes
Provision for civil liability for failure to disclose
Or incorrect disclosure; in such a suit, the aggrieved customer can recover twice the finance
charge, with upper and lower limits of $1,000
and $100, respectively, plus attorney fees and
court costs. In some instances, an assignee of

the original creditor is also subject to civil
liability.

tlte new vocabulary
Assuming, then, a transaction to be covered
by truth in lending, what happens? This question can be answered most easily, and the new
truth in lending vocabulary best examined, in
the context of a typical consumer credit transaction. This might be, say, an instalment loan
made by a bank.
In such a loan, disclosure must be made before the credit is extended, though there is provision for delayed disclosure in mail and telephone order situations. Regulation Z does not
set specific requirements for the sizes of type
used in disclosure documents except for numerical amounts and percentages; the disclosures
must, however, be clear and conspicuous. In
many cases, specified terminology is required;
when the terms "annual percentage rate" and
"finance charge" are required, they must be
more conspicuous than other required terminology. The customer must be provided a copy
of the disclosures, which may be in the note,
in some other document that is a part of the
transaction, or in a separate disclosure statement.

The object of the whole truth in lending effort, of course, is to reach the annual percentage rate. To do this requires that two other
figures be determined: the "amount financed,"
analogous to the principal, and the "finance
charge." These terms are central to truth in
lending and bear further examination.
The amount financed is essentially the
amount of credit which will actually be available to the customer. It is determined, in the
case of a loan, by starting with the base amount
of the credit. To this are added any other
charges imposed on the customer which serve
to increase the amount of the credit but which
are not part of the finance charge - for example, license and registration fees that are

business review/ april 1969

7

added to the loan balance. From the total (base
credit plus other charges) must be subtracted
any amounts which, in practice, decrease the
credit actually available. Thus, if any portion
of the finance charge is payable in cash, to the
creditor or otherwise, it must be deducted as a
prepaid finance charge. Such would be the case
when so-called points are payable to the creditor in connection with the transaction.
The next order of business is the determination of the "finance charge," another important
new consumer credit term. Here as well, truth
in lending takes a no-nonsense approach. The
creditor must include in the finance charge
every amount which the customer will pay, directly or indirectly, to obtain the credit. Interest, of course, is one such charge, but there are
others. Some components of the finance charge
may be payable to someone other than the
creditor, but they must be included. An example of this situation would be a finder's fee.
There are a number of specific and highly
technical rules for computing the f111ance
charge. Insurance is a case in point. Property
and liability insurance premiums must be included if the creditor refuses to allow the customer to supply his own policies. Different rules
apply to premiums for credit life and similar
insurance. The premium for FHA insurance
must always be included.
There are two special rules applicable in
real estate situations. Certain closing coststhey are specified in regulation Z - are not
includable in the finance charge when the transaction is secured by real property. Again, the
dollar amount of the finance charge need not be
disclosed in first mortgage home purchase
situations.

but the regulation will not permit the use of
this abbreviation in actual disclosures. The annual percentage rate is the most important
element of truth in lending, since it provides the
key yardstick by which the credit costs of all
types of transactions can be measured against
one another.

For typical instalment and single-payment
transactions, the APR is determined by what is
called the actuarial method, sometimes referred
to as the simple annual rate. The formulas for
the actuarial method are complex, so much so
that they are included in a supplement to regulation Z and not printed in the regulation itself.
They will be primarily of interest to producers
of rate charts or creditors with sufficient cowputer capability to make their own computations.
Most creditors, however, will compute their
rates through the use of tables. Regulation Z
contains detailed guidelines for their production, and official tables - the Regulation Z
Annual Percentage Rate Tables - are produced by the Board of Governors and made
available through the Board or the Federal Reserve banks. Presumably, though, the bulk of
the tables will be prepared by commercial
publishers.

the apr
After finding the amount financed and the
finance charge, the creditor is in a position to
determine the annual percentage rate. Even
now, this term is being referred to as "APR,"

8

Irregular payment schedules will cause some
difficulty. Various irregularities are fairly common, such as a final payment that is a few dolla~'s over or under the other payments. These
mlllor irregularities may be disregarded in line

with certain limitations found in the regulation.
Others, however, must be fully compensated
for in computing the rate. The Board's tables
have a supplement of instructions for making
arithmetical adjustments to handle irregularities.
In certain transactions with a small finance
charge, disclosure of the APR is not required.
Thus, when the amount financed is over $75,
the APR is not required if the finance charge is
$7.50 or less. When the amount financed is $75
or under, the APR is not required if the finance
charge is $5 or less. Also, until January 1,
1971, the creditor may, at his option, state the
APR as dollars finance charge per year per
$100 of unpaid balance. This provision does
not allow him to state the so-called add-on rate,
only to restate the actuarial percentage in terms
of dollars.
In addition to the three major itemsamount financed, finance charge, and APRtruth in lending requires other disclosures. The
payment schedule must be set out, with a warning about any balloon payments. Security for
the indebtedness must be clearly identified. Information must be furnished as to the conditions under which the loan can be prepaid and
the charges which will be made in the event of
default.

o pen-end credit
The rules for disclosure in instalment and
single-payment transactions are not workable
in another large segment of consumer credit,
typified by department store revolving credit,
check-credit plans, and most of the credit cards.
Consequently, another set of disclosure rules
Was devised for this area, which for truth in
lending purposes is called open-end credit. A
caveat is necessary here : Do not confuse the
truth in lending use of this tenn with its traditiona l use. The time-honored open-end mortgage is not open-end credit for truth in lending. Truth in lending applies "open-end" to a
tYpe of account characterized by a fluctuating

balance, with a finance charge imposed periodically - usually monthly - and generally
based on the size of the balance.
For open-end credit, point-of-transaction disclosure is abandoned. Disclosures are required
before the account is opened - and in periodic
statements which must be furnished thereafter
- but generally not at the time the loan or
sale is made. For active accounts in existence
on J wy 1, disclosure equivalent to the preopening disclosure must be made by July 31,
1969.
Preopening disclosure is concerned largely
with setting out the tenns on which the account
will be handled. Periodic disclosure involves
such items as the opening and closing balances
(called previous and new balances, respectively), debits and credits during the period, the
finance charge added, the periodic rates, and
the APR. There is no APR exemption for openend credit.
The concept of APR for open-end c,redit is
also entirely different. Two methods of computation are available. In one, the various periodic
rates are annualized to produce the annual
rates; thus, a finance charge of 1;t2 percent per
month would produce an APR of 18 percent.
In the other method, the finance charge is divided by the balance on which it is based, and
the resulting percentage annualized. Creditors
will probably prefer to use the former method,
since it will preclude the need to compute the
APR each month. The tenns of the account can
be adjusted so that this procedure will be permissible.

the comparative index
One difficulty in the open-end field is that
terms other than the rate can make a considerable difference in the cost of credit. For example, consider two accounts which charge 11h
percent per month. One computes the monthly
charge on the previous balance (the opening
balance of the billing cycle in question); the

business review/april 1969

9

other, on the balance after payments during the
billing cycle have been deducted. Each will
carry an APR of 18 percent, but the effective
rate on the latter account will be less.
Truth in lending seeks to disclose this difference by a device called the Comparative Index
of Credit Cost. This is an optional disclosure;
to compute it, the creditor runs a standardized
hypothetical transaction through his account
and determines the rate that would be achieved.
If utilized, this device should provide an effective index to the relative cost of various openend accounts.

advertising
The second component of truth in lending advertising - is probably of almost equal importance in getting information to consumers
but is not nearly as complex in its details as is
disclosure.
One point to be remembered is that "advertising" is an all-inclusive term. It includes newspaper and magazine advertisements; messages
on radio and television; direct mail literature;
billboards, window displays, and posters; pointof-sale literature; catalogs; price tags - in
short, every sort of commercial message. Advertising for consumer credit is covered even
though it is not by a creditor. For example,
consumer credit advertising by an association of
creditors would be covered.
The principal rules applicable to advertising
are three in number. First, if a creditor advertises certain specific credit terms, he must make
them usually and customarily available. Thus,
an advertisement of "$25 down" 0~ :.'$7 . 50 per
month" means that the creditor wilI De required
to offer those terms to all who apply for them
if their credit standing justifies. Second, if any
specific credit terms are advertised, the creditor
must also advertise his whole credit package.
Finally, rate advertising must be on an annual
basis and in line with the APR approach of
truth in lending.

10

the three-day rule
The final aspect of truth in lending is the
three-day rescission rule. The purpose of the
rule is to give customers time to think things
over when confronted by the fast-tatking home
improvement gyp artists who have been plaguing homeowners of late. There is no question
that this has become a serious problem; many
states, on their own, have enacted laws with
the same objective. The rule as enacted by Congress, however, has implications far beyond the
home improvement field, and this important
point should be kept in mind.
What the rule says is this: In any consumer
credit transaction in which a lien is or may
be obtained by any party on the customer's
principal residence, other than a first lien purchase money mortgage, the creditor must allow
the customer three business days from the
"consummation" of the transaction or from the
making of all disclosures required by truth in
lending, whichever is later, in which to cancel
the transaction. The creditor must, in addition
to other required disclosures, give the customer
a specific notice of this right, and a copy of the
notice can be used to exercise it.
The customer has up to midnight of the third
business day following the beginning of the
period in which to rescind. The creditor is not
permitted to advance' any money except in
escrow, to start work, or, in many cases, even
to deliver materials until he is satisfied that the
customer has not rescinded. If rescission does
not occur, the transaction goes through as
agreed.
If rescission is exercised, any lien on the
residence arising as a result of the transaction
becomes invalid, and the creditor must remove
the lien from public records. The creditor also
must promptly return any money or property
of the customer which he has acquired. The
customer must thereupon return to the creditor
any property which the creditor has delivered
to him; if it would be impractical to do so, the

customer need only return the fair value of the
item.
There is provision for the customer to waive
the right of rescission in a bona fide personal
financial emergency. To do so, the customer
furnishes the creditor a separate dated and
signed statement describing the situation; the
use of printed forms for this purpose is prohibited. Waiver will allow the customer to obtain credit quickly in emergency situations,
such as when his furnace goes out in the middle of the winter.
The three-day rule will probably cause major
adjustments to be made in loan closing procedures for home improvement and second mortgage situations. One important fact to be remembered is that the rule comes into play even
though the creditor himself does not or will not
acquire a lien. For example, suppose a bank
makes an unsecured loan for home improvelllent purposes. The home improvement contractor will acquire a mechanic's lien by virtue
of performing construction work. The three-day
rUle would then come into play.

state laws
Some of the knottiest questions under truth
in lending involve the interplay between state
and Federal laws. One aspect of this - and
~erhaps the ultimate solution to the problem IS the exemption provided in Section 123 of the
act. This section allows the Board of Governors
to exempt from the Federal law any class of
t~ansactions which is subject to substantially
~llllilar state requirements and for which there
IS adequate provision for enforcement. At the
time of this writing, the Board is still in the
process of drafting guidelines for the granting
of such exemptions. One can only speculate
~hetller the states will flock to secure exemptlons of this type or will prefer to let Federal
money supervise credit disclosure.
The Uniform Consumer Credit Code may be
a factor here. It has been suggested for adoption

by the states, and the drafters of the code hope
that their final effort will contain disclosure
provisions which, if adopted, will support a
Section 123 exemption. Of course, there is
more to it than that; there must also be adequate enforcement, and a state's regulations
must comply as well. The UCCC currently is
bogged down in controversy, but the controversy does not necessarily relate to its disclosure
aspects. Otherwise, there is no reason why a
state not wanting to adopt the UCCC cannot
work out its own disclosure statutes and obtain
an exemption that way.
In the meantime, there is the question of
conflict between existing state disclosure laws
and Federal truth in lending. This is a difficult
area; regulation Z takes the position that any
state law touching on an area covered by Federal truth in lending and requiring disclosures
which are different is "inconsistent" with Federal law. It is recognized, however, tllat some
creditors may prefer to continue to comply with
both state and Federal laws, at least until legislation or an authoritative court decision clarifies the matter. To do tllis, a creditor will be
required to place his inconsistent state disclosures on a separate sheet from his Federal
disclosures or, if they are on the same sheet,
place the state disclosures below a conspicuous
demarcation line and identify them as inconsistent.

That, in short, is truth in lending. No summary of a complex subject can take account of
all the twists and turns. For those who must
comply, there is no substitute for thorough
study of regulation Z and the act; articles like
this can only point the way.
Other efforts to point the way are increasingly in evidence as the task of gearing up for
July 1 moves ahead. The Board of Governors
has prepared a pamphlet containing regulation
Z, the act, a question-and-answer series, and

business review/april 1969

11

specimen forms; and the pamphlet is being distributed to creditors by the various supervisory

What you
aught to know about
FEDERAL RESERVE

REGULATION

Truth In Lendimg
Consumer Credit
Cost Disclasure

nus NEW FEDERAL LEOISLATION GOes INTO EFFECf JULY I. 1969

12

agencies. (Any creditor who does not receive,
the pamphlet should contact the appropriate
supervisory agency, as indicated in the accompanying box.)
Seminars are being held to acquaint personnel of the supervisory agencies with the new
regulation. Trade associations are active; speakers from the Board, the Federal Reserve banks,
and other enforcement agencies are addressing
trade association conventions and seminars on
the subject of regulation Z, and many associations themselves are preparing educational materials and presentations for their members.
New forms are being printed, tables prepared,
computers programmed, and sales and lending
personnel trained - all with the goal of regulation Z compliance on July 1.
No one wanted truth in lending to be complex, but it covers a complex field. There is not
a great deal of similarity between a 25-year loan
for the purchase of a $75,000 house, a seasonal
line of credit to a farmer, and the sale of a
watch for "$1 down, $1 a week," but all three
come under truth in lending. In the congressional hearings, a number of witnesses expressed doubts that a workable truth in lending
program could be devised. One has been devised, however, and it will work. It will require
the efforts of many between now and July 1 creditors, supervisory agencies, the publishers
of charts and forms - but, in the end, the
public, through increased ability to shop for
credit, will be the winner. And that, after all, is
what truth in lending is all about.

Truth in Lending Inquiries
The article points out that a number of Federal agencies are responsible for truth in lending supervision with respect to particular types of creditors., Questions regarding truth in
lending which concern a specific type of creditor shou ld be directed to the office of the appropriate agency as set out below.
National Banks
Comptroller of the Currency
United States Treasury Department
Washington, D.C. 20220
State Member Banks
Federal Reserve Bank serving the area in which the state member bank is located.
Nonmember Insured Banks
Federal Deposit Insurance Corporation Supervising Examiner for the District in which the
nonmember insured bank is located.
Savings Institutions Insured by the FSLlC and Members of the FHLB System
(Except for Savings Banks Insured by FDIC)
The FHLB's Supervising Agent in the Federal Home Loan Bank District in which the institution is located.
Federal Credit Unions
Regional Office of the Bureau of Federal Credit Unions, serving the area in which the Federal Credit Union is located.
Creditors Subject to Civil Aeronautics Board
Director, Bureau of Enforcement
Civil Aeronautics Board
1825 Connecticut Avenue, N.W.
Washington, D.C. 20428
Creditors Subject to Interstate Commerce Commission
Office of Proceedings
Interstate Commerce Commission
Washington, D.C. 20523
Creditors Subject to Packers and Stockyards Act
Nearest Packers and Stockyards Administration area supervisor.
Retail, Department Stores, Consumer Finance Companies, and All Other Creditors
Truth in Lending
Federal Trade Commission
Washington, D.C. 20580

bl.l,siness review/ april 1969

13

dist,-ict highlights
During February, the seasonally adjusted
Texas industrial production index rose nearly
1 percent to 168.5 percent of its 1957-59 base.
The increase in total manufacturing accounted
for all of the rise, since mining was down
slightly and utilities were unchanged. In tlle
manufacturing categories, nondurable goods
made a stronger gain than did durable goods.
The changes for the nondurable goods sectors
ranged from moderate declines to substantial
increases, while there was little change in most
durable goods sectors. Among the nondurable
goods, the largest monthly output gains occurred in chemicals and petroleum refining
(reflecting, in part, the strike in petroleum refining in January), as well as in "other" nondurables. The decrease in crude petroleum output was responsible for tlle lower mining index.
The industrial production index for the State
in February was almost 3 percent above the
same month in 1968. Both total manufacturing
and utilities showed gains, but mining output
declined nearly 9 percent. Total durable goods
exhibited considerably more strength than total
nondurable goods. Among all the manufactures,
only the textile mill products sector posted a
decrease from a year earlier. There was a 10percent gain for utilities, buoyed by a strong
rise in electricity generation. As was the case in
the month-to-month change, a decline in crude
petroleum output accounted for the reduced
level of mining activity.

Nonagricultural wage and salary employment
in the five southwestern states in February, at
a level of 6,025,900 persons, was fractionally
allead of the previous month and was 5 percent
over February 1968. The month-to-month increase in total employment was more buoyant
than seasonally expected. All sectors posted

14

stronger-than-seasonal gains with the exception
of transportation and public utilities employment, which was little changed from the preceding month'. Manufacturing employment exhibited the largest above-seasonal gain.
As compared with a year ago, all the nonagricultural employment sectors in the five
states showed increases in February. The percentage gains in the mining, construction, and
service sectors each exceeded the rise in total
employment. Transportation and public utilities posted the smallest year-to-year gain in
employment.
Registrations of new passenger automobiles
in the major metropolitan areas of Dallas, Fort
Worth, Houston, and San Antonio decreased 8
percent during February. Among the individual
centers, only Fort Worth reported an increase
over January. Combined February registrations
were down 11 percent from those for a year
earlier. Cumulative data for tlle first 2 months
of 1969 show that registrations in the four
markets were 5 percent below the same period
last year.
Department store sales in the Eleventh District for the 4 weeks ended March 22 were 8
percent ahead of the comparable period a year
ago. Cumulative sales thus far in 1969 were 12
percent higher than in the corresponding 1968
period.
Daily average production of crude oil in the
southwestern states of Louisiana, New MexicO,
Oklahoma, and Texas decreased 1.0 percent
during February to a level that was 6.4 percent
below a year earlier. The yearly decline was
concentrated in Louisiana and Texas, as New
Mexico and Oklahoma showed only small
changes. The decline from a year ago reflected

the very strong demand for crude petroleum in
the winter of 1968 that resulted from the Middle East crisis and unusually cold weather.
Stocks of crude petroleum, which had risen
more rapidly than seasonal needs earlier this
year because of the strike by refinery workers,
eased to normal levels in February.
The oil allowable for Texas was 42.8 percent
of the Maximum Efficient Rate of production
in February and was raised to 45.6 percent for
March; for April, it has been set at 49.9 percent. The Oklahoma allowable, which had been
90 percent of permissible production for several
months, was raised to 100 percent in March
and will be the same for April. The allowable
has been raised slightly in Louisiana and in the
Southeastern part of New Mexico. These someWhat higher allowables can be attributed to the
fact that April is a transitional month for the
oil industry, when preparations are made for
the summer travel season.
Planting of corn and sorghums is active in
the southern part of the Eleventh District and
will begin in the northeastern section as soon
as fields become dry enough for working. Cool,
damp weather is delaying cotton seeding in
Illost parts of the District except the Lower Rio
Grande Valley. Winter wheat prospects continue to improve, especially in the western
areas, where recent rains have benefited the
crop's development. Southwestern vegetables
are generally in good supply.
According to the U.S. Department of AgriCUlture, fanners in the five southwestern states
~dicated at the beginning of March that they
Intend to plant about 28.4 million acres to
Illajor spring crops this year. If such intentions
are carried out, this acreage would be almost 5
Percent larger than actual plantings in 1968.
Acreages of most crops are expected to increase; the exceptions are rice, sorghums, and
hay, acreages for which are expected to be
dOwn only slightly. The additional cotton acre-

age would account for nearly tluee-fourths of
the gain in the. total acreage of major crops.
Ranges and livestock are generally in good
condition for this time of year. However, cold
weather has caused some loss of livestock
weight and fo'rced the continuation of supplemental feeding in a few areas as a result of the
slow development of permanent grasses.
The number of cattle and calves on feed in
Texas on March 1, 1969, totaled 1,039,000
head. This figure is 4 percent below a month
earlier but 38 percent greater than a year ago.
The number of cattle and calves on feed in
Arizona, at 430,000 head, was also 4 percent
below a month earlier but was 19 percent
.
larger than on March 1, 1968.
Prices received by Texas farmers and ranchers for all farm products during J anuaryFebruary averaged 7 percent above the same
period last year. A 20-percent increase in prices
for livestock more than offset an 8-percent decrease in those for crops.
Cash receipts from falm marketings in the
Eleventh District states during J anuat·y were
slightly below the corresponding month last
year. Crop income registered an 8-percent decrease, but receipts from livestock and livestock
products were 8 percent larger.
Reflecting seasonal factors and the reduced
availability of funds, all major balance sheet
items except loans adjusted decreased at the
weekly reporting commercial banks in the
Eleventh District in the 4 weeks ended March
12. Large certificates of deposit declined further as a result of the continued payment of
higher rates for other short-term investments.
Loans adjusted gained $57 million, as loans
to nonbank financial institutions increased $30
million and business loans expanded $17 million. Real estate loans rose almost $4 million,
or more than double the advance for the comparable period last year. Consumer instalment

bUiliness review/ april 1969

15

loans, however, were up only marginally, about
in line with the year-earlier gain.
Total investments declined $69 million, due
to decreases of $49 million in U.S. Government
security holdings and $28 million in holdings
of municipal securities. In the comparable 4week period a year ago, total investments rose
$14 million.
On the liability side sf the balance sheet,
total demand deposits decreased $112 million,
with U.S. Government deposits and deposits of

tlew
par

batik

16

states and political subdivisions declining $43
million and $84 million, respectively. Interbank
deposits fell $32 million, but demand deposits
of individuals, partnerships, and corporations
gained $46 million.
Total time and savings deposits declined $24
million, as the reduction of $63 million in
"other" IPe time deposits more than offset an
increase of $36 million in deposits of states and
municipalities. The runoff in large certificates of
deposit amounted to $73 million in the 4 weeks
ended March 12.

. The Ba~ of Baytown, Baytown, Texas, an insured nonmember bank located
the terrItory served by the Houston Branch of the Federal Reserve Bank of
Dallas, was added to the Par List on its opening date, March 14, 1969. The
officers are: Fred ~artman,. Chairman of the Board; L. A. Hill, President;
J. Evans Attwell, VIce PresIdent; John D. Lazrine Cashier' and Linda Otis
Assistant Cashier.
" ,

10

STATISTICAL SUPPLEMENT
to the

BUSINESS REVIEW

April 1969

FEDERAL RESERVE BANK
OF DALLAS

RESERVE POSITIONS OF MEMBER BANKS

CONDITION STATISTICS OF WEEKLY REPORTING
COMMERCIAL BANKS

Eleventh Federal Reserve District

Eleventh Federal Reserve District

(Averagas of daily flgure s. In thousands of doliars)

(In thousonds of doliars)
Feb. 26,
1969

Mar. 26,
1969

lIem

Total re serves held .• •.........

With Federal Resorve 8ank ••••

Net loans and discounts ... ... ........ , .. ..... .
Valuation roserves . ......................... .
Gross loans and discounts . .. . . ............... .

6,307,405
119,311
6,426,716

6,317,739
119,913
6,437,652

5,390,513
107,266
5,497,779

industrial loans • . . •••• •• • •• ••

3,070,509

3,055,587

2,697,398

105,871

103,939

98,436

1,001
74,966

1.001
134,471

16,774
25,890

400
412,113

368
408,650

431
337,203

Agricultural loans, excluding

5 weeks ended
Feb. 5, 1969

4 weeks end.d
Mar. 6,1968

74 1,387
689,590
51,797
740,265
1,1 22
45,414
-44,292

769,728
712,600
57,128
755,492
14,236
29,292
-15,056

698,261
651,662
46,599
692,990
5,271
3,003
2,268

766,901
591,715
175,186
736,284
30,617
10,534
20,083

775,262
589,814
185,448
747,418
27,844
9,046
18,798

700,371
537,146
163,225
665,965
34,406
1,181
33,225

1,508,288
1,281,305
226,983
1,476,549
31,739
55,948
-24,209

1,544,990
1,302,414
242,576
1,502,910
42,080
38,338
3,742

1,398,632
1,188,808
209,824
1,358,955
39,677
4,184
35,493

RESERVE CITY 8ANKS

ASSETS

Commercial and

4 weeks ended
Mar. 5,1969

Item

Mar. 27,
1968

eec

cortiflcotos of interest .•.••..•..••..•.....
Loans to brokers and dealers for
purchasing or carry ing:

U.S. Government securities .. .... . . ....... .
Other securities ........................ .
Other loans for purcha sing or carrying l
U.S. Government securitIes .••......••...•.

Other securities ........................ .

loans to nonbank flnancial institutions:
Sales flnance, personal Anance, factors,
and other business credit companies . .• •...

Other •.•• . ••.. •·••· ..•.•..••..•• •••. ••
Real estate loans ...•••...... •... . .....•...
loans to domestic commercial banks .••• • . .. . ,.
loans to foreign bonks .• .•........• .•. . .. ..
Consum er instalment loons .••... ....•.....•.•
loans to foreign governments, offlcial
institutions, central bonks, International
institutions ••••.•.. · •· .·• ••·· ··· · • ···· •• •
Other loans ••.•...••••..•..••.....••...••

Currency and coin ....•......
Required reserves .•...••... •..
Excess reserves •..... ••.......
Borrowing s. .... ........ .. ....
Free reserves ..... .. ...... ...•

COUNTRY 8ANKS
Total reserves held •• ......•...
With Federal Re ser ve Bank .. ..
Currency and coin ... ........
Required reserves ... ..........
Excess reserves ••.•...........
Borrowings . .. ......... .......
Free reserves •. ...... • .... ... .

ALL MEM8ER 8ANKS
TOlol re so rvos held ..... . •.. ...

With Federal Reserve 8ank ••..
130,589
413,447
616,372
256,761
7,637
647,046

o

140,404
370,014
60e.o53
300,665
6,512
642,338

o

167,593
267,287
536,801
175,052
5,372
553,358

Currency and coin ...........
Required reserves ....• .. .•....
Excess rese rves . •........•....
Borrowings ....... ............
Free reserves •..••..... .•.....

o

690,004

665,650

616, 184

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

2,716,523

2,674,735

2,484,919

Total U.S. Government securities ••••....•••..•

1,079.412
86,641

1,113,552
109,716

1,194,441
100,664

123,576
667,969
201,226

129,204
666,275
208,357

213,494
616,381
263,902

Treasury bills .••• • ••• •• •••.• • •.••. •• ••••
Treasury certiflcates of indebtedness .. .•.•..
Treasury notes and U.S. Government
bonds maturing I

Within 1 year ............ ·· .. • .. •· .. •
1 year to 5 years .. •• . ••• .• ••• .. •... •.

After 5 years ........................ .
Obligations of states and political subdivisions:

o

o

CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS

o

(In thousands of dollars)

33,701
1,352,509

28,256
1,301,441r

7,012
1.Q94,741

154,482
96,419
986,554
793,240
84,560
472,982
6,250
377,784

150,174
81,312r
1,001,624
716,519
85,046
465,880
5,976
363,249

112,034
76,691
884,739
776,791
81,336
446,677
4,354
360,210

TOTAL ASSETS • ••.•. ..•••• •· • ••• ••·· ••• 11,745,298

11,630,768

==========================
Mar. 26,
Feb. 26,
Mar. 27,

______________ ________________~19~6~9______1 9~6~9______~~6~8____
It_.m
~
19

10,4 29,539

Tax warrants and short-term notes and bills ..

All ather ......... · ........ · ........ •· ..
Other bonds, corporate stocks, and securities:
Participation certiflcates in Federal
agency loons •.. . • ... ••. ..... .•...•• ..

All other (including corporate stacks) •• . . •...
Cash items in process of collection ••..•••.......

R.serves with Federal Reserve Bank •••••••.•••.•
Currency and coin ....•.•..•..•..••....•....•

Balanc.s with banks In the United States •••••..••
Balances with bonks in foreign countries ••.• .••••

Oth.r assets ......... · .......... • .. •· .. · .. ··

Tc:>tol gold certiflcate reserves ..••.•.•••..•••
Discounts for member banks .••. .•.... ......
~~e~ di scounts and advances.•......... . ..

T~t~1 e~~~~~:~~ls~~s~~r~t.I~~ .. : : : : : : : : : : : : : : : :
Member bank reserve deposits .............•
Federal Re serve notes in actual circulation •••••

379,795
95,096

340,893
26,140

2,111,555
2,206,651
1,274,108
1,517,219

2,113,276
2,139,416
1,235,867
1,519,065

o

o

365,747
34,499
855
2,113,582
2,148,936
1,215,948
1,391,160

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

CONDITION STATISTICS OF All MEMBER BANKS
LIABILITIES

Eleventh Federal Reserve District

Total d.poslts. • • • . • • . • .. • • • • • • • . . • • • • . . • • • •

9,578,402

9,581,106

8,893,608

Total d.mand d.pasits •••.•••.••••••••.••..

5,729,107
3,974,620
304,388
163,210
1,180,314

5,684,777
3,971,317
317,684
159,093
1,120,980

5,312,533
3,696,866
304,544
120,188
1,094,387

Individuals, partnerships, and corporations ••••
States and political subdivisions . •.•.. ......
U.S. Government •...•..•.•.. .... •.••. •.•

Banks In the United States ................ .
Foreignl
Governments, offlcial institutions, central
bonks, International institutions ... .•....
Commercial banks .. ..•. . ..•..•.. ... ...
Certifled and offlcers' checks, etc .••••......

3,672
24,029
78,874
3,849,295

2,396
22,212
91.Q95
3,896,329

4,092
24,303
68,153
3,58 1,075

U.S. Gavernm.nt {including postal savings} ••.
Banks In the United States ••.•••...••...•..

1,015,121
2,038,785
749,286
10,983
27,530

1,009,109
2,092,472
750,530
11,983
24,7 45

1,092,905
1,796,344
660,602
8,688
19,036

Foreign:
Governments, offlcial institutions, central
banks, international Institutions • •...•...
Commercial banks... •• ................

7,100
490

7,000
490

3,300
200

Bills payable, rediscounts, and ather
lIablllti.s for barrow.d money •.•..• •...• ••..
Other liabilities . ••.. ..•. ..••..••.. . •• •..• •.•

957,705
264, 170

850,624
252,324

406,333
228,011

CAP IT AL ACCOUNTS ....................... .

945,021

946,714

901,587

TOTAL L1A81L1T1ES AND CAPITAL ACCOUNTS 11,745,298

11,630,768

10,429,539

Total time and saving s deposits ....... . .. ... .
Individuals, partnerships, and corporations I
Savings deposits .••..• ........•.......
Oth er time deposits ... .........••......
States and political subdivisions •.......... .

r-

2

Revised.

(In millions of doliars)

========================================~
~
Feb. 26,

Jan. 29,

Feb. 28,

::

11,027
2,466
3,141
1,236
258
1,155

9,523
2,606
2,680
1,133
239
1,09~

.................. . .......

1,1 29
616

10,808
2,539
3,1 55
1,260
266
1,193
9
1,117
488

:;~;-------~ ~--------------~
lt~em
19~6~9------~~6~9------~9 6:~
19
1~
ASSETS

Loans and discounts.
U.S. Government abli~~ti~~; •• ..••••.••. •
Other securities ......... • .....•.. ..•. ..
Reserves with Federal Re ser~~ 'Sdn'k' .... .. .
Ca sh in vault. . . . . . . . . .
• ...... .
Balances w~th banks !n th~ iin'It'e'd' S;~te's: :
Balances with bonks In fore ign countriesD
Cash Items in process of collection
....
Other assets 0
. . . . . . . ••

7

TOTAL ASSETse ... ..... ............ .
LIABILITIES AND CAPITAL ACCOUNTS
Demand deposits of banks
Other demand d.poslts
•..••....• •..••

20,835
1,408
8,778
7,730

1,441
8,851
7,645

Borrowing s.. ..... .. .... ... . .......... .
Other Iiabilities e ... . .. .... .... ........ .
Total capital accounts e ...•..............

17,916
885
568
1,666

17,937
952
311
1,635

TOTAL lIA81l1T1ES AND CAPITAL
ACCOUNTSe ••.•. . ••....••...•• . ..

21,035

20,835

Timo deposits ..... ... .'::: : : : : : : : : : : : : : :

Total doposits ..................... ..

-M£
J
1,008
456

1,368
8,206
6,904

16,47 8
412
309
1.542

-

~

~--~~~----------------==~--~~~--~~::~
•
Estimated.

BANK DEBITS, END-OF-MONTH DEPOSITS, AND DEPOSIT TURNOVER
(Dollar amounts in thousands, seasonally adiusted)

=

DEBITS TO DEMAND DEPOSIT ACCOUNTS'
DEMAND DEPOSITS'
Percent change
February
1969
{Annual.rote
basis,

Standard me tropolitan
statistical area

Annual rate
of turnover

February 1969 from
January
1969

Fe bruary
1968

2 months,
1969 from
1968

F.bruary 2B,
1969

F.bruary
1969

January
1969

F.bruory
1968

ARIZONA, Tucson ••...•..•• • .. •• ••..•• • •• • •••.•• • •.•
LOUISIANA, Monro • .••... " ..••...••...•••... . •..••
Shreveport ••..• • . • • •• .... • .•• • •.••....••
NEW MEXICO, Roswell ' .............. .. . .. ..........
TEXAS, Abil.n e • •.•. . ••... • • . .• •• .. • ••.••• •. ..• •• •••
Amarillo • •.•• • ..••..•.•...• • ....• • .• • • • .. • ..
Austin ..•...••••.• • ...••... . ... • •••.••••.. . •
Beaumont·Port Arthur·Orang e •••• •• . • •••... . ..•
Brownsvill e· Harlingen·San Benito ••..••..•••.•...
Corpus Christi ........ .. ... .. ... .. ............
Corsi cana ~ • . • • . ..••... • •.. •• ... • • • •.• • • . . • ..
Dallas •••..... •• .••....• •• ..• • •...• • ...•..• •
EI Paso •..•...••.. . .•..• •• ... •• •... • ...• . •.•
Fort Worth ••• • ..• • . .• ••••.••....••...•.... • •
Golveston·T. xas City ........ . ................
Houston •.• •. . • ... • . ..••...•...•• • ..••....•.
lare do . . .. •. .. • ••. .• . • • • ...•• • .•••..••....•
lubbock •.... . . •• ... •• •• •• ... •• .......•...•.
McAII. n-Pharr· Ed lnburg ....... ... ..... . ....... .
Midland ..••..• • •...• • •• • •.••• • .••••.•••..•.
Odessa • • •••....•.•••••••••••••••• •• •••••.••
San Ang e lo .................................
San Antonio ••.. • ....•••• • •••.• • .••••..• • .• • .
She rman·Denison •••• •• •••••••• • •••• •• ••• • ••••
T.xarkana {Te xa s.Arkansa s' ••••••• • ••••••• • ••••
Tyler .......................................
Waco ••••.•. . .••••••••..• • •••••••••••••.••.
Wichita Falls ................................

$

4,917,768
2,422,428
6,848,592
772,764
1,984,008
5,180,904
8,560,884
5,608,656
1,556,400
4,717,296
382,356
98,511,468
6,032,892
18,898,536
2,563,896
83,580,228
803,460
3,616,476
1,511,592
1,925,268
1,384,896
1,095,372
14,701,296
920,280
1,511,196
1,870,248
2,625,132
2,250,024

0
8
3
0
3
3
8
-6
-6
0
-9
-8
-8
3
-1
- 5
2
-2
-5
-1
-6
1
-2
-7
-4
- 9
1
-6

9
13
6
16
9
2
56
1
4
4
8
33
19
8
4
11
20
5
13
16
12
9
-2
10
10
10
13
11

11
9
6
12
11
3
47
5
5
6
2
33
17
11
6
16
18
10
14
15
16
9
4
9
13
14
13
13

$ 211,032
83,867
227,867
32,796
96,797
148,371
267,560
229,319
72,507
201,603
32,131
2,107,175
212,460
610,971
105,200
2,450,824
38,967
151,757
89,729
129,446
76,774
65,524
622,236
59,026
71,804
91,861
108,700
119,545

23.4
27.9
29.5
23.6
20.0
35.2
30.5
24.5
21.9
23.7
12.4
47.2
28.1
31.3
23.9
35.2
20.6
24.5
17.0
14.8
18.4
17.0
24.1
15.0
21.8
20.5
23.6
19.2

23.9
25.4
27.9
22.3
18.6
33.5
27.3
25.3
23.7
23.1
14.1
49.9
29.2
30.3
23.8
37.6
20.5
25.2
17.5
15.0
20.7
16.7
24.9
16.3
23.2
21.8
22.6
20.9

26.9
26.8
28.9
20.2
19.1
37.5
24.0
25.0
20.1
23.5
12.5
40.7
25.5
31.9
24 .9
35.9
20.2
24.4
15.9
13.6
18.9
16.5
27.4
15.4
22 .2
20.2
20.3
18.0

Totol_28 c.nt.rs ... .... . . .. . . . ..... _ . • ••..• • •.• • ...

$ 286,754,316

-4

17

19

$8,715,B49

33.3

34.6

31.7

---~--------------------------------------------------------------------------------------------------------~ Deposits of indiv idual s, partnerships, and corporations and of statos and political subdivisions.
County ba. ls .

GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
Eleventh Federal Reserve District
(Average. of doily fl g ur•• . In million. of dollars)

BUILDING PERMITS
TIME DEPOSITS

GROSS DEMAND DEPOSITS

~
VALUATION {Dollar amounts in thousands'
Date

Total

Reserve
city banks

1967. Fe bruary ...
1968, F. bruary ...
S.ptember.
Octob.r •••
Novemb e r ••
December ••
1969, January •••
F.bruary ...

8,902
9,561
10,066
10,201
10,365
10,682
10,752
10,328

4,020
4,391
4,722
4,751
4,776
5,007
4,935
4,734

Total

4,882
5,170
5,344
5,450
5,589
5,675
5,817
5,594

Re serve
city banks

Country
banks

6,091
6,863
7,255
7,394
7,498
7,598
7,627
7,707

Country
banks

2,721
2,851
3,058
3,116
3,145
3,185
3,135
3,091

3,370
4,012
4,197
4,278
4,353
4,413
4,492
4,616

Percent change
F.b. 1969
from

NUMBER

F.b.
1968

4,875

145

71

31

1,753
4,148

2,761
6,578

74
71

116
115

6
81

73
321
835
185
111
621
3,474
64
811
926
178
4,567
74
241
145
98
114
114
1,864
105
51
396
143

1,135
1,552
15,111
1,051
302
1,340
22,061
648
13,332
6,719
532
39,651
766
3,245
494
1,300
213
635
6,386
668
368
1,973
2,217

1,409
4,043
25,249
2,112
3,275
2,819
49,967
1,100
19,221
19,401
919
81,090
1,044
4,893
950
1,668
590
1,054
16,615
989
484
3,169
4,300

314
-38
49
- 1
-90
- 9
-21
43
126
-47
37
-4
176
97
8
253
-44
52
- 38
108
217
65
6

584
- 27
17
- 26
- 50
-38
20
341
128
-24
-23
-3
287
171
-42
272
-28
-28
- 56
72
-47
67
251

118
0
24
-25
278
- 69
47
366
22
56
-19
5
247
34
-38
85
18
- 21
- 48
80
-54
-4
265

17,408

$ 131,063

$260,575

9

11

2 mos.
1969

544

1,002

48
358

125
770

41
169
459
89
55
299
1,656
32
F 050 ••• • •••
410
462
Worth ••. •
H a Veston .•• • .
98
l:r~~on .•••.. 2,515
40
Lubb 0 . . . . . . .
119
Mldl~ck .•..••
71
Od nd ..... .
p essa ••.•.••
54
SOrt Arthur ••• .
70
71
S~n ~ng .lo ..•
Sh:rm~tonio .. • 971
56
T n ......
Wxarkana .••.
30
oeo.
190
Wichita' F~il; ::
73

ARIZONA
TUcson
LO
........
lJlSIANA
Monroe .. West
Sh Monro ......
TEX;~v.port ••• •

~bll.ne •• • •••.

Arnarillo ••••..
BUllin •••..••.
Beoumon •...•.
Crownsvill e ••.•
D~II~uS Christl ..
D s ........
EI·plson •••.• . .

d"\

lOlal_26 cit',.s .•
__

8,980

2 month s,
1969 from
1968

Jan.
1969

F. b.
1969

~.a

Fe b.
1969

$

3,463

2 mas.
1969

$

VALUE OF CONSTRUCTION CONTRACTS
(In millions of dollars)
January- February
Ar. o and typ e

F.bruary
1969

January
1969

Decemb er
1968

1969

1968r

FIVE SOUTH WESTERN
STATES' . ........ . ......
R.sidential building • •• . • • •
Non resid ential building . . . .
Nonbuilding construction . • •
UNITED STATES .... .. . .....
Resid . nt lal building •..• ...
Nonresid.ntlal building ••..
Nonbullding construction •••

5 68
220
214
135
4,802
1,820
1,885
1,097

588
237
164
187
4,766
1,746
2,145
875

648
180
260
208
4,542
1,742
1,849
951

1,154
456
377
321
9,539
3,562
4,006
1,971

841
388
268
185
7,395
2,949
2,593
1,853

Ari zona, lou is iana, Now Moxlco, Oklahoma, and Texas.
r - Revi sed .
NOTE. - Details may not add to total. becau se of rounding .
SOURCE. F. W. Dodge, McGraw· HIII, Inc.

1

3

DAILY AVERAGE PRODUCTION OF CRUDE OIL

TOTAL OIL WELLS DRILLED

[In thousands of barrels)
Percent

chango

Fourth

Third

quarter

quarter

1968

1968

Area

Percent
change

from 1967

1968
cumulative

==========================
Percent change fro~

cumulative

February

FOUR SOUTHWESTERN
STATES . •.. .....• ·••· ·• .
loui siana ..... .... . • ....

Offshore • •• •. •..• ·••· •
Onshore .•.••.• ····•• .

New Me xico ... o

••••••• • •

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

Offshore • ••..•. .• ··•· •
Onshore . ...... · ·· ··· .

UNITED STATES •. ...• •. · · • ·

-2.3
-2.3
2.4
-4.9
.8
- 19.1
3.7

1,855
351
127
224
118
383
1,003
0
1,003
3,793

1,812
343
130
213
119
310
1,040
2
1,038
4,207

3.5
10.9

-11.8
14.3
27.6
8.1
-14.2
-4.1
-20.2
-66.7
-20.0
-6.5

6,984
1,353
481
872
514
1,328
3,789
8
3,781
14,331

SOURCE , American Petroleum Institute.

FOUR SOUTHWESTERN
STATES • • .•.. •.•.• .....•
Louisiana • •. •• ...•..... •
N ew M exico ..•. ...••• • ..

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

Gulf Coa st ..••.•••. •..
West Texas • ••• • .•• •••
East Texa s (proper) .....
Panhandle ••.... . ... ..
Rest of State .•.... ••• .
UNITED STATES •••• .• ••....

February

January

February

1969

Area

January

1969

1968

1969

1968

6,147.0
2,183.0
356.0
614.0
2,994.0
584.8
1,413.7
134.8
90.0
770.7
8,960.0

6,206.9
2,181.2
356.0
612.4
3,057.3
601.0
1,441.8
138.6
90.8
785.1
9,030.3

6,566.3
2,326.3
349.4
619.6
3,271.0
655.0
1,522.6
159.8
95.1
838.5
9,319.0

- 1.0
.1
.0
.3
-2.1
-2.7
-2.0
-2.8
-.9
-1.8
-.8

_6.4
_6.2
1.9
_.9
_8.5
- 10.7
_7.2
_ 15.7
_5.4
_ 8.1
_3.9

SOURCES, American Petrol e um In stituto.
U .S. Bureau of Mines.

-

Fede ral Reserve 8ank of Dallas.

NONAGRICULTURAL EMPLOYMENT
INDUSTRIAL PRODUCTION

Five Southwestern Stotes'

[Seasonally adiusted indexes, 1957-59

= 100)

Percent change

Feb. 1969 from

Number of persons

1969

February
1968r

Jan.
1969

Feb.
1968

6,025,900
1,117,600
4,908,300
231,500
389,100

6,002,600
1,103,400
4,899,200
231,600
390,700

5,736,100
1,070,900
4,665,200
213,800
354,200

0.4
1.3
.2
-.1
-.4

5.1
4.4
5.2
8.3
9.9

441,300
1,355,600
295,800
926,000
1,269,000

441,200
1,361,100
293,800
920,500
1,260,300

431,100
1,295,100
282,300
877,900
1,210,800

.0
-.4
.7
.6
.7

2.4
4.7
4.8
5.5
4.8

February

Type of employment
Total nonagricultural
wage and salary workers ••

Manufacturing ..... • .....
Nonmanufacturing • • •• • .•.
Mining •.•. • .. ··•• o • • •

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

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

finance .•.............
Service •..... • . . . •. ...
Government ••.•••••• • .

1 Arizona,

p _
r _

1969p

January

louisiana, New Mexico, Oklahoma, and Texas.

Prelimi nary.
Revised.

Area and typ e of index
TEXAS
Total industrial production ••• • . •
Manufacturing •••.••..••••• •• ••

Durable • • ••••• ••• ..•.•• •••••

M·~ondurab/e ••••.•.••.••..••..

Utlililt7~;. : : : : : : : : : : : : : : : : : : : : : :

Decemb er

1969

1968

FebruarY
1968r

168.5
193.8
213.4
180.7
119.2
236.0

167.4
190.7
212.6
176.2
120.8
236.0

166.1
19D.6
208.9
178.3
118.3
231.6

164.4
181.3
193.4
173.3
13Q.6
214.8

169.5
170.9
173.7
167.4
126.1
214.5

169.1
170.4
172.7
167.4
127.5
211.0

168.7
170.1
172.4
167.3 '
127.9
210.1

162.0
163.6
167.6
158.6
123.9
199.0

U;III,~g········· ·· ···· ······· •
t es • • .. •.• •••• • •••..••••••

p

Prelimi nary.

r -

Rev ise d.

SOURCES, 800rd of Gove rno rs of the Federal Reserve System.
Federal Reserve Bonk of Dallas.

SOURCE, Slate employment agencies .

ELEVENTH FEDERAL RESERVE DISTRICT
~ Dalla l Head Office Territor),
Hou l ton Branch Territor),
1;:;:;:;:;:1 Son Anton io Branch Territor),
E3 EI PO" BrOil'" Territory

mn:n

4

January

UNITED STATES
Total industrial production •••• .•
Manufacturing •.•••••... •• • •...
~ura:'e • •••. ... •••. ..•......
M ' .on uroblo ..••.........•....

=

February
1969p

.-

--