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BUSINESS REVIEW AUGUST 1960 Vol. 45, No.8 THE NATION'S ECONOMY AT MIDYEAR The Nation's economy was 'at a high level during the first half of 1960, though there were a substantial number of crosscurrents within its various segments. The important broad forces supporting and stimulating this near-record level of operation were partly born out of the developments of late 1959. Of particular significance was the impact of the steel strike - with all of its ramifications - in terms of imports and exports of steel, the slowdown in the Nation's productive operations, the eventual decline in jobs and personal income toward the end of the strike, and the marked shifts between inventory accumulation and liquidation. Also significant was the shifting Treasury position, which moved from a substantial deficit in late 1958 and early 1959 to the prospect of a minor surplus in fiscal 1960 and a larger surplus in fiscal 1961. Finally, concomitant with these changes has been the influence of monetary policy, which shifted as the tone of the economy changed from one of strongly rising and inflationary prospects to one of stability with a virtual absence of inflationary pressures. To a great extent, the above developments can be isolated as the principal changes affecting the economic and financial pattern in early 1960, but other factors, such as the weather, seemed to be of even greater importance this year than in previous winter seasons. Tracing the pattern emerging from all of these forces, the firstquarter developments showed a mixed reaction. Production rose sharply, stimulated by the resurgence of inventory accumulation in steel and the restocking of the Nation's automobile pipelines. FEDERAL RESERVE DALLAS, BANK TEXAS OF ·DALLAS This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) Other forces affecting the pattern of industrial production could be seen in the continuation of the late fourthquarter strength in nondurable goods output, which offset the decline in mining activity. Consumer goods output rose sharply with the strong automobile production , and equipment output showed remarkable stability. Fabricated metal products, machinery, textiles and apparel, paper and printing, and chemicals and petroleum products also showed great strength at very high levels of operation. However, there were still contrasting movements elsewhere, including sharp dips in crude oil, appliance, and television production. Perhaps one of the major areas of strength relative to the fourth-quarter level was the production of new automobiles, which was slightly ' above 2 million units in the first quarter of 1960. Steel output also rose substantially in the first 3 months of the year, with the operating rate maintained above 90 percent of capacity until late March. As a result of these factors, the industrial production index reached a new record of 111 in January and averaged 110 for the first quarter, compared with 105 in the last quarter of 1959. These production developments exceeded even the growing level of sales; and with a fairly steady level of incoming orders, the backlog of unfilled orders dropped sharply and inventories accumulated. In another area of the economy, the total value of new construction advanced in the first quarter of 1960 to an average of $54.2 billion, but only because a steady decline in the private residential field was offset by a gain in private nonresidential construction and by INDUSTRIAL PRODUCTION UN I TED STATES I Slasonall y od ju il id Ind .... ,' ~l.I OO) 9 0 . ""----;~95;-;; 9-------=------L----:-:1960--J 90 P·Pre llmlno ry. SO URCE I Doord 01 OO'l orno" . Fed e ral I BU SINES S Rc u r'l l S y.tem . REVIEW 8:1 960 a rising level of public construction. New nonfarJll housing starts in the first quarter averaged 1,227 ,600 units, compared with 1,361 ,000 units in the final quarter of 1959 and 1,542,000 units in the January-March period of the past year. Highway and heavy engineering construction contributed to the satisfactory level of total construction activity. Of perhaps equal importance to the level of construction was the apparently steady rise in plant and equipment expenditures, although a large portion of such expenditures was expected to be devoted to equipment rather than new plant construction. The rate of such capital investment expenditures rose only 1 percent above the fourth quarter of 1959, led by a substantial gain in outlays of durable goods producers. The only significant categories reflecting lower outlays were mining and transportation other than railroads. The combination of these developments in production and construction was important in the erratic, but generally rising, level of employment in the first quarter of 1960. Unemployment, remaining at a high level and averaging 5.1 percent of the labor force in the first quarter, was a problem, especially in certain areas where structural unemployment has developed . With the high level of employment, personal incow e rose slowly to a March level of $394.0 billion, or nearlY $19 billion over a year earlier but only $2 billion above the December 1959 total. Advances in labor inco)1le more than accounted for the first-quarter gain since farm income declined. Personal interest income showed the only other major improvement. Consumer credit changes during the first quarter reflected the relatively slow start in sales of appliances and new automobiles . After the usual seasonal dip ill the first 2 months, however, the total began anotber upward thrust. Increased earnings and more consU)1l~r credit supported a modest rise in consumer expendItures, with more than half of the $4 billion advance occurring in service expenditures. The influence of eJ(tremely bad weather in February and March brought retail trade to a lower than expected level and was at least partly responsible for the rapid accumulation of automobiles in dealers' hands until their inventories reached more than 1 million units by the end of March. Price changes in the first quarter of 1960 showed a small advance at the wholesale level; the index rose to 120.0 in March, mainly on the basis of higher food and farm product prices. The consumer price index advanced nominally to 125.7 in March. Steady increases in medical care and housing costs were offset by declines in transportation and stability elsewhere. The general pattern of the first quarter reflected, first, the strongly optimistic outlook at the start of t~e year and, soon afterward, the realization that the ear~er forecasts were unrealistic. Consequently, productIOn Was brought closer in line with actual developments and prospects for the near-term future. Nevertheless, inventory accumulation at a rate of $11.4 billion an& the modest gain in personal consumption ?r?ught the gross national product to a level of $501 .3 billion for an advance of almost $15 billion over the fourth quarter of 1959. Bank loan demands, together with the sub.stantially loaned-up positions of banks (especially In larger cities), caused substantial pressure on bank reserve Positions and created a feeling of tightness. Member bank borrowings rose to more than $1 billion on many days. In March, total loans of all commercial banks Were over $10 billion higher than a year earlier. Soon after the year-end adjustments were completed, the Federal Reserve permitted the market to ease someWhat· net borrowed reserves declined from an average of $3'61 million in January and February to $219 million in March, and borrowings fell from a January average of $905 million to a March level of $635 million. In the foreign sphere, the trade balance of the. United States reflected substantial improvement dunng the first quarter of 1960, with exports rising to ~n annual rate of over $19 billion. The deficit in the Umted States balance of payments was reduced to a~ ~nn~al rate of $2.7 billion compared with about $4 billion ill the first quarter of i959. The outflow of gold was reduced also to about $48 million this year, contrasted with $500 million in the January-March period of 1959. A significant change in the financial picture w.as the Shift in the Treasury fiscal posture. As usual In the Spring of the year, the Treasury's positi~n moved to'Ward repayment, but in early 1960 ~IS move was accentuated by higher than expected receIpts and lower than expected expenditures. Throughout most of th.e first quarter, inflationary forces were suppresse~. BUSInessmen and consumers recognized that the high expectations at the beginning of the year were ~ot to be realized and adjusted their operations accordIngly. The second quarter started with a strong advance in most major economic indicators. Rising employment and retail sales quieted many fears of decline and brought, instead, a feeling of stability and greater confidence in the business outlook. With the weather moderating, outdoor work in both agriculture and construction increased rather sharply, and retail buying appeared to spurt ahead, making up, to some extent, the losses in the earlier months of the year. Industrial production, however, had begun to edge downward, principally as a result of the declining rate of steel operations. Steel mills operated at steadily lower levels in each succeeding month of the second quarter, with the rate of operations only slightly above 50 percent of capacity by the end of June and averaging around 61 percent for the month. New orders to steel producers were especially disappointing as consumers moved toward partial liquidation of their sharply advanced inventory levels. Ready availability from the mills, together with the economies involved in financing smaller inventories, contributed to the manufacturers' reluctance to carry enlarged stocks. Despite continued high levels of automobile output, the increased emphasis upon compact cars somewhat reduced the demand for steel from the automobile industry. With automobiles selling at a rapid pace, producers maintained output at levels perhaps higher than had been expected at the end of the first quarter. Total production in the second quarter reached over 1.8 million units. This strength, together with improvements in other areas of consumer goods production and some gains in building materials output, offset the steel output decline. Consequently, the total production index slipped only 2 points to a level of 109 in both March and April, recovered slightly to 110 in May, and then edged back down to 109 in June. This stability extended to the level of new orders to manufacturers, but machine tool orders were well below expectations, giving rise to substantial comment that the anticipated business capital investment program was not proceeding on schedule. However, though substantiated to a minor extent by the secondquarter survey, these fears generally have not been fulfilled; and recent evidence on capital appropriations tends to indicate a continued but more slowly rising level of plant and equipment expenditures which may reflect an increase of 13 percent for the year. Second-quarter developments also included a further shift in the construction mix, with downward pressures BUSIN ESS RE VIEW ' 8:1960 31 on residential construction easing as mortgage money became more readily available. Nevertheless, total construction activities showed a minor loss in the second qaarter since new residential building was slow in developing. A rising level of apartment vacancies, continued :elatively higher mortgage interest rates, and a developmg overhang of unsold older houses restrained the growth of new housing construction. On the other hand, highway construction was maintained at a rapid pace; and the release, toward the end of the quarter, of an additional $718 million in Federal funds for highway construction was expected to spur further contract lettings in the third quarter. Of perhaps greater significance to the future and to the level of development in the second quarter was the red1,lced rate of inventory accumulation, which slowed from $11.4 billion in the first quarter to approximately $6 billion in the second quarter. Concealed within this continued inventory accumulation were the beginnings of the liquidation of steel inventories, coupled with the accumulation of finished goods at various retail outlets. Uncertainties in the level of final demand for some consumer durables have led to selective price cutting, involuntary inventory accumulation, and a modest amount of production cutbacks. In fact, there may still be a larger than needed accumulation of inventories under way which may require correction in the future. I Developments in total employment in the second quarter indicated a new record in each month; but continued gains in the labor force, especially in June, kept the rate of unemployment near the 5-percent level and, in fact, resulted in a sharp rise in unemployment in the final month of the quarter. After moving steadily downward during the first quarter, the length of the average workweek in manufacturing turned slightly upward in both May and June; and with the rising level of employment and moderate wage increases, total personal income made some substantial advances in the second quarter, reaching a new record of $405.8 billion in June - or $1.1 billion above the annual rate in May. Consumer credit increases, though at a somewhat slower pace in the last 2 months of the quarter, supported a higher level of consumer purchasing. The gross national product, reflecting these several developments, advanced to approximately $503 billion . Wholesale prices moved downward from an index level of 120.0 in March to about 119.6 in June. Consumer prices advanced moderately in the second quarter from an index of 125 .7 in March to 126.3 in May. However, the over-all price stability demonstrated that the gain I BUSINESS REVIEW 14 8:1960 in the gross national product was mostly real, rather than inflationary, and further emphasized the "liquidation of inflationary psychology." ConSistent with these changes in the general ecOnomic pattern, the Federal Reserve adjusted the degree of restraint upon bank reserves; as a result, net borrowed reserves were steadily reduced, and free reserves appeared by late May. Substantial purchases of Government securities by the Federal Open Market Account were necessary to achieve this move, with the System's total holdings rising $1,260 million between March 31 and June 30 - contrasted with an advance of only $547 million in the same period of 1959. As another step in this central banking policy, the Federal Reserve banks lowered their discount rates from 4 percent to 3% percent in early June. Treasury bill yields moved downward irregularly, and prices on long-term Government securities made substantial gains during the second quarter of the year. Continued impro~ement in the Treasury budget position, fostered by a hIgher than expected level of receipts and a lower than expected level of spending, permitted a substantial reduction in the national debt during the first half of 1960. Total demands for credit continued on the mode.st side, thus failing to replace this continued absorptIon ?f funds by the Treasury's payoff, and total credit reqUIrements in the first part of 1960 were substantiallY lower than in the first half of the previous year. The influence of all of these various factors resulted in a fairly stable, high-level economy throughout the first half of 1960, and, at midyear, this same situation prevailed. Industrial production was within 2 points of the J anuary re~ord, but the summer doldrums may prevent a clear pIct~re of production developments and trends for some tlme. Compared with a year earlier, many of the ~ajor industrial production segments were at markedly hIgher levels, but these, in turn, were offset by the .substantially lower output levels of a few principal umts. On a broad basis, total manufacturing was al?parently the same as a year ago, with durables slIghtly lowe~ and nondurables moderately higher. The s~e. offse~t~ng pattern existed between mining and utilIties; mmmg was down slightly, but utilities showed a reasonably strong advance. Steel output in the first part of 1960 reached 60,74.3,000 tons for an average of 70.2 percent of capaCIty, but a nearly 50-percent rate prevailed at midyear. ~stimates indicate a range of 50 to 60 percent of capaCIty for July and August operations, but some improvement is expected for the fall months. An early model shutdown and near-record automobile inventories forecast a marked reduction in automobile output in July. Other consumer durables, particularly appliances, were also feeling the effect of some lag in sales. Only a few major household appliances could point to gains in first-half sales over a year earlier, and the average was down nearly 9 percent. earlier. The principal increases in other than labor i~ come during the past year occurred in business 'proprietors' ineome, personal interest income, and transfer payments. Personal consumption in the latter part of the ?~st half of 1960 continued to advance, supplying addItIOnal support for the current level of the economy. On the other hand, business inventory accumulation rates are slowing and are currently estimated at an annual rate of less than $3 billion, with some liquidation of steel inventories. Total inventories, however, are reaching toward a fairly high level relative to current sales; new orders to manufacturers have not shown the growth needed to support a substantial increase in production, and order backlogs have been reduced. , The midyear economic position also presented an U1teresting pattern in construction. The total value of new construction put in place in the first half of 1960, at $24.5 billion, was just 3 percent below the corre~ponding period in 1959, but this relative comparabilIty concealed the decrease in private residential On the financial side, the midyear picture was one Construction, down nearly 1 percent, and the relative strength in nonresidential construction, which ad- of less restraint in the money market and some substanVanced an almost equal amount. Further evidence of tial improvement in prices of both Government and a ,slackening rate of growth in capital investment at municipal bonds. Bank credit demands remained subI1lIdyear also concealed the rather marked 13-percent stantial; but with increased reserves and lower borrowadVance in total plant and equipment expenditures ings, the banks were beginning to show improvement in their capacity to handle the loan demand. Corporate from the first half of 1959 to the first half of 1960. and municipal capital requirements continued on the The midyear employment and unemployment p~t easy side compared with a year earlier, further reductern showed little change from earlier months, WIth ing the strain upon the market. Substantial gains in the size of the civilian labor force Adjusting continuously through the first half of largely accounting for the increases in employment and 1960, Federal Reserve policy at midyear was in a relaunemployment. Total employment for June 1960, at tively neutral position but was supplying additiona1 68.6 million, was more than 1,300,000 above the yearreserves to support economic operations. The Treasury earlier level, but unemployment, at 4.4 million, was position at midyear was one of strength, with subs tan5,00,000 above the June 1959 total. Of perhaps greater SIgnificance is the fact that the June level of unemploy~ent, seasonally adjusted, was 5.5 percent of the civilMEMBER BANK RESERVES Ian labor force, contrasted with 5.1 percent a year ago. UNITED STATES It seems that the improvement in productivity - esti~ated at 4 percent during the past year - and the Increase in expenditures for plant and equip~ent .are -+~~-----.I 18,OOO steadily providing a greater production capacIty WIth?ut a corresponding rise in employment. Manufactur17,0001--- -- -- - --1-- - ---1 17,000 Ing employment is an excellent example; total +1, 2 0 0 1 - - - - -- - -- -- \ -- -- - 1+1,200 l1l anufacturing employment in June was down nearly BORROWINGS "'>............. __ .• ___ . 100,000 from a year earlier, while the broad total of + 800 I~" + 800 ........... EXCESS RE SERVES ' ___ manufacturing output was at the same level. ° .,."."",.,. + Advances in total employment have been accomPanied by increases in wage rates and total average Weekly earnings. Additional pay increases have been granted in recent weeks, especially the 7 .5-perce~t boost to all classified Government employees. ThIS alone will occasion a further sizable gain in total persOnal income, wllich amounted to $405.8 billion in J llne _ about $19 billion, or 5 percent, above a year o 400 I::~---------+--~p .......... ,. FREE RESERVES~ + 400 p F M A M J J 1959 A SON 0 0 ... _,,'" I---~.....__ ------.... - - ,..,....,,-,:.,"'- ----1- - 800 J p- p - P- p "'" - .p 400 J F 400 M A M J- 800 1960 Prellm1nary. SOURCE : f.!.!!.!.!! R... r. o ~ BUSINESS REVIEW 8: 1960 I 51 tial cash balances offering the possibility of reduced borrowings by the Treasury and encouraging hopes of a satisfying surplus in the current fiscal year. The turnover of deposits at the Nation's member banks was substantially higher than the midyear figure in 1959, though not quite as high as in the late winter. The Nation's money supply on June 29 amounted to $138.2 billion, or $1.8 billion below the level on December 31, 1959, and $2.1 billion under the June 24, 1959, figure. However, deposit turnover at the end of June was 6.5 percent above a year ago, reflecting a more intensive utilization of deposit money. . In general, as indicated above, the inflationary pressures in the Nation have subsided, although it should also be pointed out that there could be a resumption of such pressures if a marked upsurge in economic conditions from the currently high level of operations were to occur. The margin of capacity, which seems very large when measured against the current rate of operations in certain industries, could be narrowed quite rapidly if a further stimulant developed. With wage increases and other costs continuing to mount, pressures for higher prices to cover the increased costs and provide a better rate of return on invested capital could reappear. ELEVENTH FEDERAL RESERVE DISTRICT ~ 001/01 Head Office Territory mrm HOUlton Branch Terrllor), ·1::::::;:;:1 San Antonio Branch Territory ~ EI PO l O Branch Territory I BUSINESS REVIEW 16 8:1960 - B U SINESS REVIEW BUSINESS, AGRICULTURAL, AND FINANCIAL CONDITIONS Widespread moisture in the Eleventh District during July further boosted prospects for a favorable crop year. This year's acreage of cotton is greater than the 1959 figure, but that of grain sorghums is smaller. It is expected that rice output will be unchanged from last year but that summer vegetable and melon outturn will be larger. Range conditions have improved as a result of the rains. District department store sales in June declined less than seasonally from May but were lower than in June 1959. Seasonally adjusted department store inventories reached a record level at the end of the month. ~ew car registrations in the four most populous areas In the D'istrict during June were below both a month ago and a year ago. . District crude oil production decreased in July, and little change is expected in August as existing allow~bles have been continued. Nationally, a moderate Increase over June in crude runs to stills, together with relatively steady production, caused a decline in crude stocks. The demand for refined products, - June department store sales in the Eleventh District declined less than seasonally from May but were 2 percent lower than in June 1959. Though rising from !59 in May to 170 in June, the seasonally adjusted llldex was still 4 points below the year-earlier level. Cumulative sales for the first half of 1960 were 1 perCent less than in the same period last year. Preliminary data indicate that the District's seasonaUy adjusted department store inventories at the end of June were at a record level. The adjusted stock index W?S 191 percent of the 1947-49 average, compared ~lth 185 in May and 181 a year ago. The previous high was 188 in November 1959. Orders outstanding at the end of June and new orders placed during the lllonth registered substantial, but mostly seasonal, in- especially gasoline, improved, but product stocks rose. Construction contracts awarded in the District states during M.t::Jy declined significantly from April but were considerably above May 1959. A very sharp decrease in nonresidential awards accounted for all of the decline in May, offsetting a slight increase in residential contracts awarded. Nonagricultural employment in the District states increased moderately during June. In Texas, unemployment rose to 5.1 percent of the labor force. AItho~gh nondurables manufacturing remained steady dunng June, durables manufacturing advanced to bring the Texas industrial production index to 173 or 2 points above June last year. ' The District's weekly reporting member banks extended their deposit. gains between June 15 and July 20. Investment holdings showed a strong rise, especially Treasury bills, but I,o an demand slackened particularly for real-estate and consumer-type loans~ Reserve positions of all member banks eased moderately in June and early July as borrowings declined. creases over May. New orders were slightly below a year earlier, while orders outstanding were 4 percent higher than at the end of June 1959. Accounts receivable at District department stores in June were less than at the end of May but were still DEPARTMENT STORE SALES (tPe rce ntag e chang o In ro toil valu e ) June 1960 from 6 month s, Ma y Jun e Are a 1960 1959 Total Eleve nth Dist rict •••• •. • . . . . • • •••.•• . . -2 5 - 8 5 - 9 -4 -2 Corpus Christi ....... . .. ....... . . . ...... .. Dalla s .... . . .. .. ................ . .... .. EI Pa so . .. .. . .. ... •••••• ••• • • ••••• • •• ••• Fort Worth •• ... • . . ..•. ... . . . . ... .. . . .... Houston •• •• •• •• •• •••• •• ••••• • • ••••• • ••• San Antonio • . • . . ....• •. . • . •. . . . •.•• • .. .. Shre ve port, La ••.• •• • . . ••• .• •••.• . • ..• ••• Waco .•... • .. . . • ... ... 0 • • •• • • • • • ••• •• •• Oth e r cities • • •• • •• • • •••• • • .• •• .•....• • •• o 5 - 1 5 1960 from 1959 - 2 - 1 -5 - 4 - 15 - 3 -5 - 1 0 1 4 2 -12 -4 2 -4 -3 -4 BUSINESS REVIEW 8:1960 2 I INDEXES OF DEPARTMENT STORE SALES AND STOCKS CROP PRODUCTION Eleventh Federal Reserve District (In thousand. of bushe ls) (1947·49 ::::j 100) SALES (Daily average) STOCKS (End of month) Dote Unadjusted adjuste d Unadjusted adjusted 1959,)une ...... . .. 1960, Ap ril . . . .• . . . . Ma y.. . .... . . June .. .. .. . .. 160 172 159 156 174r 181 159 170 169 189 183r 178p 181 181 185r 191p Pre liminary. 1959 194 9-58 July 1 1959 Winte r wh oat .. .. 89,677 29,876 26,520 8,763 13,136 1,772 1,160 2,547 1,320 59,850 42,72 8 26,473 5,75 2 13,136 2,340 357 2,562 1,495 36,7 5 1 41,318 28,388 3,045 13,050 1,846 655 1,5 91 1,337 2 16,222 55,4 4 1 40,4 66 34,978 25,960 5,799 1,185 6,286 4,64 8 157,687 72,139 42,764 29,598 26,046 6,463 435 5,565 6,615 Corn • ... . . . .. . . Oats •. .. . .. .. . . Barl ey . .•... ... Rie e2 • • New car registrations during June in the four most populous areas in the District were 11 percent lower than in the same month of 1959, with each area reporting a decline, and were down 6 percent from the preceding month. Compared with May, Houston registrations, showing the only month-to-month increase, were up 5 percent, but registrations declined 5 percent in San Antonio and 14 percent in both Dallas and Fort Worth. Cumulative registrations in the four areas for the first 6 months of this year were 1 percent above those in the first half of 1959. Agricultural developments in July continued to emphasize favorable prospects for crops this year. Fairly good rains occurred in most parts of the District sometime during July, especially in many portions of the Edwards Plateau and eastern Trans-Pecos area which had received only scant moisture in June. Cotton harvest is increasing rapidly in the Lower Valley of Texas, where many farmers are defoliating the crop. In the Coastal Bend, the first bale was ginned on July 12, and picking in the south-central counties of the State will begin shortly. In most of the eastern half of Texas and in Louisiana, cotton insects have been a problem; frequent showers have made it difficult to maintain insect control measures. The cotton crop is making fairly good progress in the later sections of the District. Cotton is blooming and squaring in the High Plains of Texas; and in the Trans-Pecos region, the crop is above knee-high. In Arizona and New Mexico, crop conditions remain quite favorable. BUSINESS REV I EW 8 • • • . ••••• Hay' .. .. .. . . . . . !! Arizona, Louisiana, Ne w Mex ico, Oklahoma , and Texa s. In thou sand s of bogs, containing 100 pounds e ach . :1 In thousands of ton s. 1 moderately above the year-earlier levels. Collections during the month were also higher than in June 1959, but the collection ratios on both 30-day charge accounts and instalment accounts were slightly lower than a year ago, indicating slower payouts by credit customers. 8:1960 Ave rag e estimat e d July 1 es timated Fla xsee d . .. . . . . 'ris h potatoes" . .. Swee t potatoe s". . Revis ed . 1960, Av erag e Crop S ea sonally Seasonally r p - FIVE SOUTHW ESTERN STATES' TEXAS 1960, 1949- 58 107,189 69,317 43,937 16,278 25,356 5,349 821 3,708 6,341 • In thou sands of hundredwe ight. SOURCE , United States Departm ent of Agricuiture. CROP ACREAGE (In thousands of acres) TEXAS FIVE SOUTHW ESTERN STATES' Harvested Harvest e d For For harvest Crop Cotton .. . ...... Wint e r wh ea t. ... Corn ... . . . . .. . . Oats .. .. . ... ... Barley . .. . . . ... Rye ..... .... ... Ric e •. . . .... . .. Sorghums . ... . . . Hay .• . .. .. .... Peanuts (alone).. . Fla xseed •. ... . . Iri sh potatoes . ... Swe et potato es . . 1 1960 1959 6,950 3,899 1,358 1,105 381 18 417 7,797 1,651 307 116 21 22 6,775 3,420 1,526 1,15 1 295 20 417 8,475 1,703 3 13 34 20 23 Ave rag e harvest 1949- 58 1960 8,988 2,905 2,080 1,237 164 28 496 7,076 1,694 422 99 21 29 8,790 8,930 2,202 1,551 1,199 104 875 9,392 3,840 430 117 45 88 AV!lrag e 1959 1949-58 8,5 47 8,368 2,423 1,759 1,086 113 87 0 10, 195 3,866 445 37 42 106 11,437 7,862 3,418 1,921 533 117 1,041 9,206 4,036 582 106 44 120 Arizona, loui siana, Ne w Mex ico , Oklahoma, and Texas . SOURCE , United States Deportm ent of Agri cuitur • . The cotton acreage planted in the District states this year is estimated, as of July 1, at almost 8.8 million acres, or 3 percent above the 1959 figure but 23 percent less than the 10-year (1949-58) average. Part of the year-to-year gain resulted from increased plantings under the "Choice B" option. All of the District states showed increases over the year-earlier levels, ranging from a I-percent gain in Louisiana to a 12-percent advance in Arizona. As in the District states, the July 1 cotton acreages in Texas (almost 7 million acres) and the Nation (16.3 million acres) also were up 3 ]!>ercent from a year ago and were around 23 percent less than the average . . Combinirig of grain sorghums is virtually complete in the Lowel' Valley and Coastal Bend and is under way in' the Blacklands. July rains boosted sorghum prospects in the dry-land areas of the High Plains of Texas and New Mexico. The acreage of sorghums for all purposes for harvest in the District states this year is placed at 9.4 million acres, or 8 percent below that harvested in 1959. Rain in the northern Blacklands and in northeastern Texas was beneficial to corn. How~ver, corn acreage for harvest in the District, at 2.2 milhon acres, is indicated at 9 percent under last year, and output is estimated to be 23 percent smaller. Improved moisture was quite helpful to peanuts in the Cross Timbers and Plateau areas of Texas; the early crop in south !exas continues to make good growth. Rice is heading In the upper coastal area of Texas. Rice acreage in the District is 1 percent larger than in 1959, but indicated production is 86,000 bags smaller. Marketing of commercial vegetables in Texas has been concentrated primarily in moving onions, potatoes, watermelons, and cantaloupes. In east Texas, okra, peas, squash, corn, and green beans are being shipped in volume. Carrot and tomato planting is under :vay in south Texas, and field work is active in preparlllg seedbeds for fall and winter vegetables. Production of summer vegetables and melons in Texas is estimated to be 14 percent above last year, with larger acreages of Cantaloupes, onions, and watermelons contributing to the gain. Range feed conditions in Texas, as of July 1, were the lowest for the State since the drought year of 1956, but SUbsequent rains increased forage supplies in most sections of the District. The Edwards Plateau area was ~s~ecially benefited. The condition of cattle and sheep IS unproving as forage supplies increase. Weekly reporting member banks in the Eleventh District showed some marked changes between June 15 and July 20. Deposits rose, and loan demand moderated ; however, investments increased at a rapid rate. Cash accounts were reduced, and total assets declined. ~ number of forces were responsible for these changes In District banking statistics, including substan!i~l Treasury financings, in which District banks partiCIpated heavily. The slower rate of loan demand was caused principally by declines in real-estate loans and consumertYpe loans. Gross loans (excluding interbank loans) decreased $13,155,000, with the above-mentioned deClines being offset partly by an advance of $5,358,000 in commercial and industrial loans. Investment portfolios of the weekly reporting ba~s rose $108.9 million ; most of the increase occurred III hOldings of Treasury bills, primarily as a result of the ban.ks' participation in the new Treasury bill offerings dunng July. Holdings of Treasury certificates and CONDITION STATISTICS OF WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES Eleventh Federal Rese rve District (In thousands of dollars! July 20, 1960 15, 1960 July 22, 1959 1,469,349 31,199 1,502,274 32,482 18,486 1,736 16,224 19,178 14,710 10,231 179,502 10,241 177,771 10,108 188,803 121,479 137,200 347 80,892 203,883 756,327 129,535 125,143 403 57,759 208,641 776,154 134,801 110,738 10,033 11,925 222,512 716,186 Gross loons .............. ....... . ... ... 3,014,117 55,285 3,004,155 54,446 Net loons. . .. .....•......•.... .. . . . . . •• 2,958,832 2,949,709 Item ASSETS Co mm e rcial and industrial loans • •.••••• • • • .•• 1,474,707 Agricultural loans • • ••.••••••.••••••••••.•• • 30.789 Loans to brok ers and d oole rs for purchasing or carrying : U. S. Government securitie s•• ••••••••••••• • 274 Othe r securities • • ••••• •••.. ••••• . • . • . •.• Other loans for purchasi ng or carrying : U. S. Gove rnm e nt se curities •••..•.••••••••• Othe r securities .•..• . . . ••• •• ••••.•.•.•• • Loon s to nonbank financial institutions: Sales finance, p e rsonal flnanc e, e tc .•.••.••.• Savings ban ks, mtg e. cos., ins. cos., etc .••••. . loans to foreign banks ••••.•.. . .• .•.• • .• • . . loans to dom estic commercial banks •• • • .. • . ••• Real-estate loans ••. • • ......••..•.••••• •• •• All oth e r loans ••••• • • •.•..•....• •.•.• ••••• l ess reserves and unallocat e d charg e -offs.. June 2,973,750 50,831 --2,922,919 --- Treasury bills. .. • . •. . ..... . . . . .. ... . • . . . •. 147,362 Tre a sury ce rtificat es of indebtedness. . • • • . • • . . Tr ea sury not es and U. S. Governm ent bonds, including guarantee d obligations, maturing I 24,418 46,181 23,418 Within 1 year .... .... . . ........ . ...... . 61,817 840,724 281,374 346,525 68,198 820.377 293,738 341,433 40,346 842,668 300,726 341,759 520,283 1,977 50,451 557,463 181,858 463,845 1,719 51,613 552,768 166,070 6,391 ,677 6,2 86,465 2,902,354 140,577 208,354 980,036 14,962 48,639 2,948,196 157,418 226,753 884,264 16,732 80,289 1,037,170 8,655 394 222,916 3,943 1,089,648 7,045 421 181,798 2,866 After 1 but within 5 ye a rs • .••. • ..••••• • •• Afl e r 5 years •••....• . • . •••••••••••••••• Other securities •• ••••• ....•.•...•. • ••••••. Total investments .• ••••.•••• ..• •••••• • • • • 1.702,220 Ca sh items in process of collection ••..• ••••• .• Balances with banks in the United States • •••• .. Balances with banks in for ei gn countries •••• • . . Curre ncy and coin •....•.•••••••...•.••..•• Rese rves with Fe deral Rese rve Bank • • •• •••••• . Othe r a sse ts ••• • .••.•.• ••• • •••••• .• • ••.... 472,555 454.497 1,772 51,794 560,260 172,947 TOTAL ASSETS .. .................... . 6,374,877 60,191 65,743 -- --1,593,345 1.651,433 -476,098 -536,591 lIA81l1TIES AND CAPITAL ACCOUNTS Demand d e posits Individuals, partn ership s, and corporations • ••• 2,898,613 231,129 Unit e d States Gove rnm e nt • ••••.••••• ••• •• 210,182 States and political subdivisions •• • .•• •• • • .• 8anks In the United States . ... . • •••..•••.. Bon ks in fo reig n countries ••••...•••.•••••• Ce rtifie d and offlcen' ch ecks, etc .••••..•.•• 895,847 13,295 43,856 Total demand deposits. . •. • . .. . •• . . . . .• 4,292,922 Time deposits Individuals, partn ers hip s, and corporations •••• 1,050,381 8,455 United States Governm e nt .• •• ••• • • • ..••• • 394 Postal savings •••• . . ..•. •.•••• ..•. •••••• 225,584 States and political subdivisions • •• ...•.•••• 3,678 Banks in th e U. S. and foreign countries • • • ••• -- --4,294,922 4,313,652 ---- Total time deposits .•••................ 1,288,492 1.273,078 1,281,778 Total deposits ..................... . 5581414 5,568,000 170,864 100,185 552,628 5,595,430 102,734 57,484 530,817 Bills payable, rediscounts, e tc.. • • • • • • • • • • . • • • All other liabilities. ........................ Capital accounts. . • • • • • • • • • • • • • • • • • • • . • • • • TOTAlllA81llTlES AND CAPITAL ACCOUNTS. '154'601 83'331 555;531 -- --- --~ ~ ~ Treasury notes and bonds due after 1 year but within 5 years also in.creased, but holdings of notes and bonds maturing within 1 year and after 5 years showed declines. Total deposits of the weekly reporting banks rose modestly during the 5-week period, extending the advance made in the preceding 4 weeks. Demand deposits, however, declined in the recent period, led by reductions in interbank balances. Demand balances of BUSINESS REVIEW 8: 1960 I RESERVE POSITIONS OF MEMBER BANKS Eleventh Federal Reserve Di stri ct (Ave rag es of daily figures. In thousands of dolla rs ) 5 weeks e nd ed July 6, 1960 Item RESERVE CITY BANKS Total reserves held . •.. . .... ... With f ederal Rese rv e Bank .. . . Cash allowe d a s reserves . .. . . Required rese rv es . ... .. . . . . . . . Excess reserv es . .. .... .. . . ... . Borrowing s• • •• .. ... . .• . . . ... • fr ee rese rves .. . . .... .. . . . . . . . COUNTRY BANKS Total reserves held . . •. . .. . .... W ith Federal Rese rve Bank.. . . Cash allowed a s reserves . ... . Require d reserves . . . . ... .. ... . Excess reserves . ..... . ... .. .. . Borrowing s• • . .. .. . . . .... . .... Fr ee rese rves • .. ..... . . . ...... All M EM BER BANKS Total reserves held • .•. . . . . ... . With Federal Rese rve Bank .. . . Ca sh allowed a s reserv os . .. . . Require d reserves . . ...... . ... . EKcess reserves . . .... ........ . Borrowing s• .... ..... . ... .•. .. Free reserves . .. .. ... . . . .. ... . Month af June 1959 4 weeks end ed June 1, 1960 545,670 531,B72 5 29,821 2,051 525,436 6,436 11 ,489 -5,053 5 27,B19 5 25,44 8 2,371 52 1,22 5 6,594 16,656 - 10,062 44 1,179 4 34,41 5 6,764 395,B43 45,336 17,864 27,472 442,106 43 5, 115 6,991 4 16,790 25,316 2 1,36 2 3,95 4 448,330 973,051 964,236 B,B15 921,279 5 1,772 29,353 22,419 969,925 960,563 9,36 2 93B,015 31,910 38,018 -6,10B 994,000 539,486 6,184 32,879 - 26,695 The statement of condition of the Federal Reserve Bank of Dallas reflects a moderate gain in total earning assets from June 15 to July 20 and small increases in both discounts for member banks and holdings of United States Government securities. Member bank reserve deposits rose $19.5 million. Federal Reserve notes in circulation reached $795.7 million on July 20 and were $11.5 million above the June 15 level. NEW PAR BANK 405,964 42,366 9,532 32,83 4 945,450 4 B,550 4 2,4 11 6,139 NOTE. _ Rogulation s pe rmitting me mb e r banks to count part of th e ir vault co sh in mee ting rese rve require ments b ecom e e ffective in Dece mb e r 1959 , and on January 1, 1960, th e rese rve computation pe riod for count ry me mb er ban ks wa s chan ged to a biwee kly ba si s. The re fore , monthly data comparabl e to year-e arli e r mat e rial are not a vailabl e. The Peoples State Bank, Clyde, 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 its opening date, July 9, 1960. The officers are: Weldon Edwards, Chairman of the Board (Inactive); Lee Loper, President; and Truman Hornsby, Cashier. 71\- t: Crude petroleum production in the Eleventh District during "" OIL and GAS ; early July declined, contrathe United States Government contributed the major , ID1 seasonally, about 1 percent froIIl offset to the reduction in interbank deposits, as Tax and .... the June level and was 2 percent Loan Account privileges were used by the banks to pay for some of the new Treasury bills. On the other hand, lower than a year ago. In contrast, national crude oil time deposits showed a further gain, with the improve- output advanced slightly over both June and a year ment centered in balances of individuals, partnerships, earlier, with the month-to-month gain attributable to a 2-percent rise in production outside the District. Proand corporations. duction in the District is scheduled to remain about the Reserve positions of District member banks eased same in August, as the 8-day allowable has been conmoderately during the 5 weeks ended July 6, with total tinued in Texas. Despite increased nominations, oklareserves advancing and required reserves and borrow- homa will hold production allowables steady ill ings declining. The result was a shift to net free reserves August, and little change in output is anticipated ill for the member banks. Most of the improvement in free Louisiana and southeast New Mexico. reserves occurred at country banks, where a slight deCrude oil imports decreased 4 percent during the 5 cline in required reserves and a small decrease in weeks ended July 15 but increased 7 percent over the borrowings combined to boost average free reserves year-earlier period. In early July, crude oil stocks in the from $3,954,000 in the 4 weeks ended June 1 to United States totaled 249,120,000 barrels and those of $27,472,000 in the more recent period. Reserve city banks showed small gains in total reserves and required District origin, 115,218,000 barrels, with both reflectreserves and a similarly small decline in borrowings. ing significant declines from late June and the saIIle time last year. The reduction in crude oil stockS occurred because of the decline in domestic producCONDITION OF THE FEDERAL RESERVE BANK OF DALLAS tion and imports and an increase in crude oil runs to (In thousands of dollars)' refinery stills. Item Total gold certiflcate rese rves .••.. . •. . ..... . Dis counts for me mb e r banks . . •. ... . . .. . .. .. Oth er discounts and advanc es . ... .... .. .. . . U . S. Governm ent securities .... .. . . ... . . " . . To tal e arning a ssets...• .. . ... . . . . .. . . . .. ,. Memb er bank rese rve d e po sits•• ... . . . .•..•• Fe d eral Re serve notes in actual circulation •..•. BUSINESS REVIEW 10 8: 1960 July 20, 1960 Jun e 15, 675,180 33,34 2 663,843 2 1,039 1,063,673 1,097,015 948,604 795,704 1,054,056 1,075,095 929,101 7B4,206 o 1960 o July 22, 1959 696,292 20,610 88 4 1,05 4,047 1,075,54 1 94 1,63 2 786,307 Crude runs to stills in the United States showed a contraseasonal increase of about 4 percent during the first half of July and were 5 percent greater than a year ago. Within the District, refineries processed an aVerage of 2,372,000 barrels daily, which is 1 percent more than in June and 12 percent higher than in July 1959. Imports of refined products in the 5 weeks ended July 15 averaged 590,000 barrels /daily, or 19 percent above the year-earlier period. Demand for the four major refined products in the 5 weeks ended July 15 rose 2 percent and averaged 4 ?ercent greater than a year earlier. Gasoline demand, Influenced by the seasonal increase in automobile travel, advanced 3 percent and was 4 percent over a year ago. The demand for kerosene was also strong; however, distillate fuel oil demand weakened slightly. The demand for residual fuel oil was unchanged at a level 5 percent lower than in the same period in 1959. The more than seasonal increases in the demand for petroleum products modified the usu~l stock changes b~t did not totally offset the expansion in product supplIes. Stocks of the four major petroleum products rose 2 percent during the first half of July, reflecting increased crude oil runs and a substantial gain in refined product imports. However, these stocks, amounting to 390,838,000 barrels on July 15, were 3 percent lower than a year earlier. Gasoline stocks declined 2 percent from the end of June; stocks of distillate fuel oil, residual fuel oil, and kerosene increased significantly. Eleventh District well completions in June totaled 1,479, which is virtually equal to the previolJs month's level but is 15 percent less than in the same month last year. Total footage drilled in June showed a similar pattern. INDUSTRIAL PRODUPION = 100) (Soa sona ll y adiu sted inde xes, 1947-49 1960P May 1960 April 1960 1959 173 218 254 202 129 172 217r 252 202 128 174 220 252 206 129 171 209 250 189 135 166 165 172 162 127 288 167 166 174' 161 127r 287r 165 164 172 159 128r 288r 166r 166r 179 r 156' 129r 271 Juno Area and type of ind ex TEXAS Tota l industrial production • .•. Totol manufactures •.•.••••• Durabl e manufactures . •.• . •. Nondurable manufactures... . MinIng ................... UNITED STATES Total industrial production . . . . Totol manufactures • •• . • .... Durable manufactures . . . . . . . Nondurable manufactures . . .. MIning ................. -. 'Utilities ••...•.•... .. .... · . p r - June Prallmlnary. Revlsod. SOURCES: Board of Governors of th e Foderal Reserve Systom. Fede ral Reserve Bank of Dallas. NONAGRICULTURAL EMPLOYMENT Five Southwestern States' Percent change June 1 960 from Number of persons June Typ e of employm ent 1960 e Total nonagricultural wage and salary workers . . 4,429,700 791, 100 Nonmonufocturlng •. ...... 3,638,600 249,800 MIning .. . ...... ····· . 3 12,000 Construction . .......... Manufacturing . .......... Transportation and public 409,100 utilities . ... ......... Trade .. . ... ..•. ····· • 1,094,400 200,400 Finance • •. . . •.•.•••• , . 544,400 Service •• • .•••.• . • . • .. 828,500 Government • ........•• May 1960 1959 r 4,413,200 786,100 3,627,100 246,900 305,800 404,500 1,090,000 197,900 541,000 841,000 May 1960 1959 4,374,300 793,200 3,581,100 263,500 322,000 0.4 .6 _3 L2 2.0 1. 3 -_3 1.6 -5.2 -3.1 408,000 1,065,500 195,000 529,300 797,800 1.1 .4 1.3 _6 -1.5 .3 2.7 2.8 2.9 3.8 June June Arizona, Loui ~ ian'J, New Mexico, Oklahoma, and Toxas. e - Estimated. Revis ed. SOURCES , State employment agencies. Federal Rese rve Bank of Dallas. 1 r- Nonagricultural employment in the District states increased seasonally in June to a level of 4 ,429 ,700 , or 1.3 percent above a year earlier. Both manufacturing and nonmanufacturing employment advanced slightly, and nonmanufacturing employment also was higher than a year ago. Among the principal sectors of nonmanufacturing employment, construction was 2.0 percent more than in May and mining rose 1.2 percent, but government employment declined somewhat. All other nonmanufacturing sectors showed continued increases over t~e pIieceding ~onth. With the exception of ma?ufactunng, constructIOn, and mining, employThe index of Texas industrial production during ment III all nonfarm sectors was above the June 1959 JUne increased to 173, which is 1 point above the May levels. ~evel and 2 points above June 1959. Total manufacturUnemployment in Texas showed a sharp seasonal lllg activities rose slightly above the May figure, with increase during June to reach a level of 188,000, or dUrable goods manufacturing moderately higher and 5.1 percent of the nonfarm labor force. A marked exnondurable goods output steady. June mining activity pansion in the labor force was primarily responsible also edged upward but was about 4 percent below the as teachers and students sought summer employment. year-earlier level. The total value of construction contracts awarded in the District states during May declined 21 percent from the preceding month but was 6 percent above a year ago. The very sharp month-to-month decrease of 32 percent in nonresidential aw.ards more than offset a nlinor increase in residential awards. The cumulative value of contracts awarded in the District states in the first 5 months of this year was 4 percent lower than in the same period in 1959. BU SI NESS RE V IEW 11 8: 1960 CONDITION STATISTICS OF ALL MEMBER BANKS BANK DEBITS, END-OF-MONTH DEPOSITS AND ANNUAL RATE OF TURNOVER OF DEPOSITS Eleventh Federal Reserve District (Dollar amounts in thousands) (In millions of dollars) Debits to demand deposit accounts l Percent change from 1960 Are a May June 1960 1960 1959 June 30, 1960 June ARIZONA 258,484 11 13 $ 129,604 22.7 20.0 21.1 Monroe ... ... ... . .. . Shreveport. ......... 79,990 337,233 -5 6 4 8 52,941 178,516 18.6 22.6 19.9 21.0 16.4 19.1 NEW MEXICO Roswell .... ... ..... . TEXAS 40,751 2 9 30,427 16.1 16.1 14.3 98,234 -2 224,335 6 203,468 -12 163,358 -2 189,430 6 16,029 5 2,857,114 -4 331,072 -1 825,245 7 83,682 -10 2,599,780 1 27,682 -10 176,403 -9 63,072 1 54,172 0 626,079 2 24,810 7 84,862 -4 106,058 3 123,311 5 -1 0 3 3 2 0 6 1 -1 -5 -1 2 -3 2 -3 -1 13 -9 -3 -1 61,555 111,962 139,165 95,238 101,535 18,823 1,149,186 157,526 358,992 62,421 1,221,592 22,175 106,287 42,502 46,022 366,690 16,567 58,406 66,918 98,785 19.0 24.2 17.8 20.6 22.0 10.1 30.6 24.7 27.5 16.3 25.4 15.0 19.6 17.8 14.3 20.5 18.1 17.5 19.1 14.9 19.9 22.8 19.7 20.6 20.2 9.5 32.3 24.2 25.7 17.9 24.8 16.6 20.6 17.8 14.9 20.0 16.7 18.2 18.6 14.3 18.4 22.7 15.4 18.5 20.3 9.5 28.4 24.5 26.4 16.2 25.3 14.5 19.9 17.0 14.6 19.2 16.6 18.4 19.1 14.3 2 $4,693,835 24.6 24.5 23.4 Tucson •••....•... . .. $ LOUISIANA Abilene . . . .... .• .. . . Ama rillo . .. . ... .... . Austin ....... .. ... . . Beaumont •. . .. .. .. • . Corpus Christi .... . ... Corsicana .... . ... . . . Dallas • •... .. . .. .. .. EI Paso . .. . . .... . .. . Fort Worth ..... . .. . . Galveston .. . . . . . .. . . Houston ••....... .. . laredo .... . .. .. .. . . Lubbock .. . . . ....... Port Arthur ......... . San Angelo ... . ..... San Antonio ......... Te xarkana ' , .. .... .. Tyle r ....... .. .. .. . . Waco .. ....... . .. . 0 Wichita Falls .. . .. . .. Totol-24 cities . . .. . .. . $9,594,654 0 1 De po sits of indi vidua ls, partne rships, and corporations and of states and political subd ivi sions . .2 These flgures includo only two bonks in Texarkana, Texas. Total debits for all banks in Texarkana, Texas-Arkansas, including one bonk located in the Eighth District, amounted to $54,351,000 for the month of June 1960. VALUE OF CONSTRUCTION CONTRACTS AWARDED (In thousands of dollars) January-May Area and type FIVE SOUTHWESTERN STATES' ..... .. . . . 339,153 147,535 Residential ....... . 191,618 All other ......... . UNITED STATES ..... . 3,336,723 Residential ....... . 1,452,872 All other ......... . 1,883,851 1 April 1960 May 1959 428,305 144,766 283,539 3,339,792 1,470,637 1,869,155 321,555 165,410 156,145 3,541,858 1,677,324 1,864,534 May 1960 1959 1960 1,629,019 1,700,461 832,065 686,969 868,396 942,050 14,122,786 15,230,334 6,120,524 7,126,054 8,002,262 8,104,280 Arlzona, louisiana, New Mexico, Oklahoma, and Texas. SOURCE, F. W. Dodge Corporation . DAILY AVERAGE PRODUCTION OF CRUDE OIL (In thousands of barrels) Change from May 1960' 1959' 2,795.1 2,416.5 450.4 1,067.8 120.2 107.9 670.2 265.5 113.1 4,013.2 6,808.3 3,072.3 2,705.5 512.6 1,203.5 147.2 107.0 735.2 248.0 118.8 4,010.8 7,083.1 June Area 1960' ELEVENTH DISTRICT. .•. .. .. 2,826.9 Texas ................ . . 2,458.3 457.9 Gulf Coast •.....• . .... West Texas . . ....... . . 1,083.4 122.8 East Te xas (proper) ..•.. 107.9 Panhandle .. .. ....... . 686.3 Rest of State .•.. . ..... 255.2 Southeast e rn Ne w Me xico •. 113.4 Northern louisiana ..•..... OUTSIDE ELEVENTH DISTRICT. 3,980.7 UNITED STATES .... .. ...... 6,807.6 SOURCES , 1 2 June May 1960 1.1 1.7 1.7 1.5 2.2 .0 2.4 -3 .8 .3 - .8 .0 Estimated from American Petroleum Institute weekly reports. United States Bureau of Minos. "BUSINESS REVIEW 8:1960 May 25, 1960 Juno 24, 1959 loans and discounts • . .... .••... . ... . . . .. United States Government obligations .. ... . Other securities ....... . ............ . . .. Reserves with Federal Reserve Bonk .•.•.... Cash in vault e .•.... . ........ . ......... Balances with bonks in the United States .. . . Balances with banks in foreign countriese .... Cash items in process of collection ... . ... . . Other assets e ..• . ... ... ......•..... . ... 4,895 2,362 815 906 147 1,000 2 518 265 4,805 2,408 823 906 142 891 2 490 277 4,685 2,541 823 935 143 995 2 544 254 TOTAL ASSETse . .. .......... .. ...... 10,910 10,744 10,922 1,075 6,358 2,215 910 6,425 2,175 1,081 6,553 2, 180 Total capitol accounts e . •. ........ . . . ... . 9,648 183 137 942 9,510 142 152 940 9,814 113 91 904 TOTAL LIABILITIES AND CAPITAL ACCOUNTSe . ... ... .. .... . . . ..... . 10,910 10,744 10,922 June 29, Item Annual rate of turnover May June 1960 1959 June 1960 Demand dopositsl June 1959 -8.0 -9.1 -10.7 -10.0 -16.6 .8 -6.7 3.0 -4.6 -.8 -3.8 ASSETS LIABILITIES AND CAPITAL ACCOUNTS Demand deposits of banks • ..•• • . • . . •.. • . Other demand deposits ........... . ..... . Time deposits •.......... . .... . . .. .. . . .. Tota l deposits ••• . ••........•..•. . ... Borrowlngs e . . . .......... . . . . .... . .. . . . Other liablllties e ••. •• ... •• .... • •...... . e- - Estimated . GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS Eleven th Federa l Reserve District (Averages of dally flgures. In millions of dollars) GROSS DEMAND DEPOSITS Reserve Date Total city banks 1958, June ••... • 1959, Juno ••...• 1960, February . • March •• • • April ...... May ...... 7,523 7,678 7,620 7,539 7,503 7,364 7,473 3,764 3,771 3,640 3,661 3,640 3,623 3,726 June . ..... Country banks 3,759 3,907 3,980 3,878 3,863 3,741 3,747 TIME DEPOSITS Total 2,048 2,177 2,145 2,171 2,190 2,178 2,191 Reserve city banks 1,122 1,135 1,089 1,097 1,105 1,094 1,098 ---Country banks 926 1,042 1,056 1,074 1,085 1,084 1,093
@FedFRASER