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BUSINESS
REVIEW
AUGUST 1961
Vol. 46, No. 8
ECONOMIC RECOVERY
Over the past 12 months, the Nation's economy has completed
its fourth postwar business cycle, moving from a plateau of highlevel activity in the second quarter of 1960 to an apparent cyclical trough in February 1961 and the.q showing rapid recovery.
In fact, many indicators had reached prerecession highs by June.
The forces of instability dominated the economic picture through
the end of 1960 but, after rapid correction, faded in the second
quarter of 1961.
Among the forces of instability exerting an influence toward
contraction of economic activity were the declines in the rates of
government spending for purchases of goods and services and the
sharp reversal of the Government's budget position. Federal Government purchases of goods and services decreased from a rate
of $54.1 billion in the third quarter of 1959 to $51.8 billion in
the first quarter of 1960. A reduction in state and local government expenditures during the fourth quarter of 1959 also added
to the rate of decline and broadened the impact of the lower
spending rates. Moreover, from a deficit of $12.4 billion in fiscal
1959, the Government's budget position shifted to a surplus of
$1.2 billion in fiscal 1960; this shift sharply reduced the stimulative impact of the higher levels of Federal Government spending
in the previous year.
Interwoven with these changes were the marked shifts in inventory positions. The forces bringing some of the most violent fluctuations in inventories had their origin in the steel strike of 1959,
when sharp accumulations of steel inventories in the earlier part
of the year were counterbalanced by liquidation toward the end
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)
of the year. Also important to the inventory shifts were
the widespread expectations of economic prosperity for
the year 1960. With the steel strike settled and an economic advance anticipated, inventories were again accumulated at an exceptionally rapid rate in early 1960.
However, without a comparable rise in final demand,
stocks became burdensome; and the slowdown in accumulation and subsequent liquidation brought further
downward pressure on the economy.
Perhaps to some extent, these forces of recession
were augmented by the reactions of consumers and
businessmen to the failure to achieve their expectations.
This failure was translated into positive action by businessmen in their reduction of expenditures for new
plant and equipment, which, in turn, was reflected in
decreased demands for a wide range of goods and services. Consumers, in addition to reducing purchases of
basic durable goods, curtailed expenditures for new
housing. In previous cycles, residential construction
had countered recessionary trends; however, in this
instance, the decrease in home building contributed to
the over-all economic decline. The steady reduction in
new housing starts developed partly because of the
influence of the relatively high level of mortgage rates
ane!. partly because of the satisfaction of basic demand,
which was manifest in the rising level of vacancy rates.
As has been the case in other postwar cycles, the
impact of the recession was centered in the durable
goods manufacturing sector. Evidences of recession
were most marked in the rate of output, sales, and orders
of durables producers and the employment and income
generated by such producers. Over the May 1960February 1961 period, durable goods output fell 12
percent; the weakness was concentrated mainly in the
primary metals and transportation equipment industries, which showed declines of more than 18 percent.
The reaction in the primary metals sector reflected
industry adjustments to the increased levels of steel
inventories that developed in early 1960, whereas the
transportation equipment decline - accounted for primarily by lower output of motor vehicles and parts reflected producer adjustments to the higher levels of
dealer inventories and the slower consumer demand in
the early part of 1961. By contrast, nondurable goods
output declined only 3 percent, and mining output was
virtually unchanged; total industrial production decreased 7 percent.
Of course, the decrease in industrial production
brought a marked decline in employment of factory
BUSINESS REVIEW
2
8:1961
MANUFACTURING EMPLOYMENT, INDUSTRIAL
PRODWCTION, AND I NVENTORY CHANGES
UNITED STATES
EMPLOYME NT
THOUSANOS OF WORI<ERS
(Sealonallyad Jul t.d)
PRODUCTION
IN DEX 119~ 1 . I OO )
114
16,750
MANU FACTURING
I=-~=~<
- EMPLOYMENT 1 - - - - - 1 112
-
16,000'1---- - - - -,
1
5,7501 - - - - - - - -
106
15,500f -- --
104
-'-'-'-"::..::..:.c..:..::.:..:...--
1 5,250 1-----------+-~=---__I 102
15,OOO L...J---'----'----L-,l: -:7 -L--'--'--'---'--L....J.-"'='=-:-_,_'--.J 100
19 6 0
19 6 1
BILl.IONS OF DOLLARS
+12
+8
+4 1 --
0 1 --
- - - / +8
------r----~ +4
-
---
o
-4 1--- - - - - - - - --..,,- - ---1 -4
-8 1--- - - - - - - --1-- - - ---1 -8
-12 "-'--L_
_
~::__-L---L---,-,-'----1 - 1 2
p ~Pfe lJ m lna rr .
SOURCES: Boord 0' Gov.rnofl, Federal R... r... , SYltem ,
U.S, D'porlm,rli o f Com m.rc •.
U.S, a.porlmenl 01 Lo bor.
workers. Total manufacturing employment in the Nation was reduced by more than 1 million workers
between May 1960 and February 1961, with about
700,000 laid off by durable goods manufacturers. AVerage weekly hours were also reduced. The consumer,
in reaction to the declining availability of new job
opportunities and the rising level of unemployment,
began to curtail expenditures in the second quarter of
1960; and retail sales declined from a peak of $18.9
billion in April 1960 to a trough of $17.8 billion iJl
January and February 1961. Moreover, following the
pattern of lower final demand, business sales contracted
and exerted further pressure upon inventory positions.
Business capital spending declined from an annual
rate of $36.30 billion in the second quarter of 1960 to
$33 .85 billion in the first and second quarters of 1961.
The decline was relatively mild in comparison wid!
changes which had been evident in other postwar receSsions. In fact, capital spending was reduced only 1
percent in the 1960-61 recession, contrasted with 22
percent in the 1957-58 slowdown.
· Activities in the construction industry were likewise Extended Unemployment Compensation Program was
reduced, although, in opposition to the change in capi- inaugurated in March 1961. This brought immediate
tal spending, one of the strongest sectors during 1960 relief to workers who had exhausted their state benefits
Was commercial and industrial construction. Residen- and was a reinforcing factor to the development of
tial building declined from a seasonally adjusted rate the recovery.
of 1,331 ,000 new housing starts in May to 996,000 in
Much earlier, however, other government policies
December, while total construction held fairly steady had resulted in a drastic change in rates of spending for
at a level of approximately $55 billion over the period. goods and services. The Federal spending rate advanced
With total exports exceeding imports by about $4 from $51.8 billion in the first quarter of 1960 to $56.5
billion, the marked improvement in import-export re- billion in the second quarter of 1961, and state and
lationships of the United States in 1960 s01~ewhat mO.d- local expenditures showed a little more rapid advance
erated the effects of the domestic receSSIOn. SpecIal from $45.0 billion to $51.0 billion in the same period.
eXports of jet aircraft and cotton were partly responsi- The supporting effect of these sharp increases clearly
ble for the exceptionally high levels of exports for 1960. helped to limit the duration of the recession and reduce
the magnitude of the over-all decline to sharply less
The recession also had an important impact upon than in any of the previous postwar recessions. Implicit
the financial area. With the beginnings of the plateau in the change in Federal Government spending rates
in early 1960, demand for bank loans declined more was a similar change in the Government's budget posithan seasonally, and interest rates started d~wnward. tion. With higher spending rates and lower revenues,
R.eserve availability for the Nation's commercIal banks the budget slipped from surplus back to deficit, and the
Was markedly improved by a shift in Federal Reserve deficit reached $3.9 billion in fiscal 1961.
System policies from restraint to moderate ease and then
Other policies to counteract the recession included
active ease as the recession developed.
an attempt to stimulate capital spending by a multiOf particular importance during 1960, especially faceted program designed to lower long-term interest
after June, was the development of a strong ?utflow of rates and by the continued and aggressive policies of
gold from the United States which complicated the ease on the part of the Federal Reserve System. The
problem facing the monetar; authorities in providing System's purchases of securities outside the bill area
reserves to meet the domestic situation. The outflow of may have contributed to the marked rise in corporate
gold was tied, at least in part, to the international dif- and municipal borrowing during the first half of 1961.
ferential in interest rates and to a confidence factor. Policies with respect to yields on short-term securities
Bfforts were made by the Federal Reserve to avoid may also have contributed, along with rather strong
Undesirable declines in short-term inteFest rates . by statements by the Administration concerning the mainSUpplying reserves through changes in reserve requrre- tenance of the gold price at $35 an ounce, to the cessalllents, by authorizing the counting of v~u1t ~ash as tion of gold outflows in the early part of 1961.
:eserves, and through open market operatIOns,.mcludGovernment programs alone, however, could not
lUg transactions outside the 91-day Treasury bill area.
have been sufficient to complete the adjustments necesIn consequence, short-term interest rates held at about
the July level through the remainder of the year, and sary for economic recovery. During the fourth quarter
yields on long-term Governments showed little change. of 1960 and the first quarter of 1961, liquidation
brought business inventories to a level more consistent
By the trough of the recession in early 1961, several with sales patterns; and with the commencement of
actions both automatic and discretionary, had already recovery, rising sales caused a marked move to accumubeen t~ken to induce recovery. These policies ra~ged lation in the second quarter of this year. Private activiWidely in timing, degree of effectiveness, and magmtude ties also were responsible for the development of a
of Change. The automatic stabilizers began to operate better balance between debt and income, for the more
When additional unemployment developed~ and un- efficient handling of inventories, and for reducing costs
elllployment compensation payments rose qUIckly, both and improving productivity.
through the regular state programs and through suppleThe shift in business policies was responsible for an
lllental unemployment benefit programs in. t~e steel and
improving balance of factors of production, inventories,
automobile industries. Government polICIes supplelllented these automatic stabilizers when a Temporary and sales in a number of industries. However, to the
BUSIN ESS REVI EWI
8 :196 1
adjust~d rate comparable to that in the trough of the
receSSIon. Total employment in June reflected a neW
record of 68,706,000 workers. Factory employment increased to 16 million during the month but was about
470,000 below a year ago. The unemployment total in
~usi?~ssmen ~ere quick to see the advantages of
June amounted to 5,580,000, or still more than 1 milmamtammg a hIgher level of capital spending than
lion above a year earlier, and comprised 6.8 percent of
perhaps could have been justified on the basis of curthe labor force. The composition of this unemployment
rent sales. The need for more competitiveness against
total reflects an increasing proportion of women and
comparable industries in foreign nations and the need
teen-agers in the labor force, as well as the rising total
to improve productivity in order to reduce costs were
of the labor force itself. The average workweek of facamong the important factors in limiting the decline in
tory workers has advanced 1 hour since January, and
capital spending.
average weekly earnings reached a new record of
Thus, at the low point in the recession in February $94.24 in June.
196!, there were already a number of forces under way
These increases in employment and hours worked,
l~admg toward a reversal of the decline and the begincoupled with some special disbursements of National
nmg of recovery. Perhaps the most apparent sign of
Service Life Insurance dividends and the new unemr~covery. was the ~harp increase in industrial producployment compensation payments, have resulted in a
tion, which was stlIDulated by higher levels of govern~harp rise in personal income. Total personal income
ment spending, the change in inventory policies, and
m June, at $416.7 billion, was $13.6 billion above the
the need to service a developing higher level of both
recession low, with most of the gain in wages and salb~siness and consumer demand. By June 1961, indust1'1al production had returned to the year-earlier level; aries of manufacturing workers. Prices at both wholesale and consumer levels have been virtually stable over
primary metals and transportation equipment showed
advances of more than 16 percent, and there were the past year. Some minor increases in service prices
broadly based gains by virtually all other durable goods have been largely offset by declines in food prices.
industries. Moreover, nondurable goods output had There have been some underlying changes in prices,
however, reflected mainly by discounts.
advanced over a year ago, and the gain of nearly 6 percent was accounted for mainly by chemical, petroleum, . With economic recovery maturing, there have been
and rubber products and textile, apparel, and leather Important changes in the financial environment of the
products manufacturing. The breadth of these advances Nati?n.l?uring the first half of 1961, total loans (exsu~gests more strength than could be attributed merely
cludmg mterbank loans) at all commercial banks
to mventory changes.
sh0v.:ed less streng~h than in the same period of the
The expansion in construction activities was based prevIOUS 2 years, WIth declines from a year earlier cenon some improvement in residential building but a more tered primarily in commercial and industrial loans and
s
important rise in public construction. New housing loans to sales finance companies. The changes in indu starts had recovered to a level of 1,374,000 units by strial loans reflected repayments by trade concerns,
June, and total new construction had reached a $56.5 m~t.a~ and metal products manufacturers, and publiC
billion annual rate. Capital spending programs are utIlitIes.
being reconsidered and, if new capital issues are a reliPart of these repayments may have stemmed fro!1l
able guide, may be quite large.
the avail~bility of funds created by new capital issueS
These forces of change have encouraged improve- and pOSSIbly less need for loans as inventories were
ment in total business sales, new orders to manufactur- being liquidated. A slower rate of capital spending in
ers, and consumer spending. Although consumer spend- the first half of 1961 than a year earlier probablY
ing has increased, the gain in purchases of durable caused some slackening in bank loans for interim finanCgoods thus far has been insufficient to spur a renewed ing. Finally, the generally lower level of business saleS,
even though improved during the first quarter may
rise in consumer instalment credit.
have reduced businessmen's needs for bank credit. The
The rising trend of business has brought a marked decline in sales finance company loans probably regain in employment, but unemployment remains at an flected the lower level of consumer purchases of durable
extent that rising productivity met the need for labor
an~ t~at adjustments could not be perfectly timed, these
polIcIes also may have contributed to the higher levels
of unemployment.
I BUSINESS
REVIEW
8:1961
goods, mainly appliances. With retail sales of durable
goods down 5 percent in June from a year ago, after
showing even greater year-to-year declines in earlier
lUonths of 1961, consumer credit extensions - and,
Consequently, the demands of sales finance companies
for bank credit accommodation - have been reduced.
On the other hand, commercial bank investments
Were sharply higher than in the early part of either of
the previous 2 years. Total holdings in the :first half of
1961 were increased $2 billion - a gain exceeded in
the past 10 years only by the corresponding 1958 advance. Commercial bank holdings of various maturities
showed considerable change during the first half of
1961, partly reflecting not only Treasury financings but
also the deliberate change in bank policies. Generally
Speaking, banks reduced the average maturity of their
portfolios, and declines were especially apparent in
hOldings of bonds maturing after 10 years. Increased
~Oldings were noticeable in the 1- to 5-year classificabon, where many of the Treasury security financings
concentrated. Total bank credit through June rose $2
billion, with nearly all of the gain in investments.
SELECTED
FINANCIAL INDICATORS
UNITED STATES
PERCENT ; Er"ANNUM - -_ _ _ _ _ _ _~--~ ~N PER ANNUM
o:o.:;::"
PE"~CE T
5
+-----4
--~---------------3
- f - - - - --l 2
1960
MI LLIO NS OF DOLL ARS
+1.000
+800
1961
MIL LIONS OF DOLLARS
- - - - f - - - - - -I+1,000
+800
+400 f----~~
+2001----- ~
0 1 - - - - -. /
+200
- -::;::::::::::::::..::~~~' o ·
+ - - - - --1 -200
Reserve availability at the commercial banks during
-400F' - - - - -- - - -+ - - -__
-400
the first half of this year was reflected in a free reserves
- 600 L......J---L--'_-L~~.l-..JL....!.--L.....L-L--L...,-'-~-.J -600
*
rol. .
1961
level averaging over $500 million. Although a comof
flour...
p. Pr.ll mlnar)'.
fortable level of reserves was maintained, total reserves
SOURCE: Boord of (iovlfnOfI, F,d, tol R.urn S,.II,rn.
declined more than in the same period in 1960, when
ease was just developing. Borrowings of commercial
banks showed very little change in this period, as total open market operations to purchases and sales beyond
borrowings from the Federal Reserve banks moved gen- the sho~t~term area had an important impact upon the
erally within a range of $50 million to $100 million compositlOn of System holdi~gs. From February 15
through July 5, System holdmgs maturing within 1
after February.
year declined $1,138 million, but holdings in the 1- to
Deposit changes over the first half of 1961 featured 10-ye~r area ~ere increased $1,990 million. System
a decline in demand deposits but a strong rise in time operatlOns continued to be aimed at providing sufficient
deposits at a rate about four times the year-earlier ad- reserves to foster economic recovery, while still trying
vance. With depositors favoring time and savings ac- to avoid ~ndue downward pressure on short-term rates
COunts, demand deposits (adjusted) showed only sm~ll and to stImulate the flow of funds into the longer-term
growth in this period; thus, the money supply was vrr- area.
tuaUy the same in June as a year ago. One should not
In addition to the Federal Reserve purchases, imOVerlook the possibility that, with recovery, some. of
proved demand for Government securities was evident
the time deposit increase may be used in augmentmg
from Government agencies and trust funds, banks savthe conventionally defined money supply.
ings and loan associations, and the general public. In
Reserve availability was maintained by the actions contrast, dealer holdings were reduced substantially.
of t?e Federal Reserve System. Net System purchas~s
Government security yields showed very little change
~url11g the first half of the year amounted to $576 ~1111o:er the :first half of 1961. Rates on 91-day Treasury
~on, reflecting primarily additions to System holdmgs
In the 1- to 10-year maturity range. Although. no bIlls, at a monthly average of 2.302 percent in JanuChanges were made in discount rates or reserve requrre- ary, moved within a narrow range of less than 30 basis
lUents during the first part of 1961, the extension of points and averaged 2.359 percent in June. Yields on
--i
Morkl l
'T Avuag ..
dolly
BUSINESS REVIEW
8:1961
I
3- to 5-year Government securities generally were reduced during the first 5 months of the year but then
moved sharply higher, increasing from 3.53 percent in
January to 3.70 percent in June. Long-term security
yields were highly stable; though fluctuating, on a
monthly average basis, within a range of 16 basis points,
such yields only moved from 3.89 percent in January
to 3.88 percent in June.
These stable yields in the first 6 months reflected
the impact of counterbalancing forces of supply and
demand. Reserve availability at commercial banks improved investment demand, but there was an increased
supply of debt instruments in the long-term area from
corporate and municipal financings and in the shortterm area from Treasury issues. The volume of corporate issues totaled $6,330 million in the first half of
this year, contrasted with only $4,527 million in the
first 6 months of 1960, and widened the spread in yields
between Aaa corporate bonds and long-term Governments. Yields were also influenced by the rising trend
in economic conditions over the last 4 months of the
period.
The economy apparently had passed its initial recovery stage by mid-1961 and appears to be moving into
higher ground. In fact, gross national product, government spending, employment, average weekly earqings,
and personal income are at record levels. The secondquarter gross national product, at an annual rate of
$515.0 billion, showed a $14.2 billion gain over the
first quarter. Of the total gain, $6.5 billion came frol11
the inventory turnaround; $5.3 billion, from higher
consumer expenditures; and $2.5 billion, from increased government expenditures. A nearly $2 billion
decline in net exports and a small rise in construction
accounted for the remainder of the change. The strength
of the recovery period ahead would seem to hinge
mainly upon the possibilities of additional growth in
consumer spending and higher levels of government
outlays and capital spending. These may have an important ramifying effect and, coupled with the stimulation from a number of new Government progral11 S
(such as those pertaining to housing, distressed areas,
and highways), may provide the spark for a period of
rapid economic gain.
NEW MEMBER BANK
The Pasadena National Bank, Pasadena, Texas, a
newly organized institution located in the territory
served by the Houston Branch of the Federal Reserve
Bank of Dallas, opened for business July 5, 1961, as
a member of the Federal Reserve System. The new
member bank has capital of $200,000, surplus of
$200,000, and undivided profits of $100,000. The officers are : W. Otto Frosch, President, and Thomas I.
Fetzer, Vice President and Cashier.
NEW PAR BANK
The Coahoma State Bank, Coahoma, 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 1, 1961. The officers are: Ed J. Carpenter, Chairman of the Board; Bill E. Read, President; Carl Bates,
Vice President (Inactive); and Weldon Estes, Cashier.
I
BUSINESS REVIEW
16
8:1961
-
BUSINESS
REVIEW
BUSINESS, AGRICULTURAL, AND FINANCIAL CONDITIONS
The Texas industrial production
index held steady at 175,
seasonally adjusted, during
June as a slight decline in man.
ufacturing balanced a small
Increase in mining. Nonfarm employment in the Eleventh District states rose slightly, with increases in
ll1anufacturing, mining, construction, trade, finance,
and transportation and public utilities sectors exceeding declines in service and government employll1ent. Unemployment in Texas reached 230,400,
Or 6.1 percent of the State's civilian labor force.
earlier. Total new car registrations in June in four
major market areas in Texas registered month-tomonth and year-to-year decreases.
Daily average crude oil production in the District
and crud~ runs to refinery stills were virtually unchanged rn June but declined in early july. Drilling
activity was generally improved, although the number of active rotary rigs was reduced slightly.
May construction contracts in the District states
:-Vere virtually unchanged from April. A strong gain
In residential building and a slight increase in nonresidential construction more than offset a decline in
public works and utilities contracts .
Rains during much of July delayed field work
throughout a large part of the District and damaged
row crops in some sections of Texas. Cotton plantings
in the District states are larger than a year ago. Outt~rns of winter wheat, oats, barley, rice, flaxseed,
Irrsh potatoes, and sweet potatoes are estimated to
be higher than in 1960. Corn production is indicated
to be lower, while the hay crop is about unchanged.
. Both sales and stocks, seasonally adjusted, at District department stores in June were higher than in
May but were lower than in June 1960. Cumulative
January-June sales were 1 percent below the comParable 1960 period. In early July, department store
sales improved slightly as compared with a year
In the 5 weeks ended July 19, loans, investments
and deposits declined at the District's weekly report~
ing member banks; and, for the first time in more than
a year, time and savings deposits decreased. Member bank reserves improved somewhat in the 4 weeks
ended July 5 and remained substantial.
June department store sales in
the Eleventh Federal Reserve
District were 10 percent lower
than in May and 4 percent below
June 1960, with part of the
month-to-month decline accounted for by the fact that
there was one less trading day in June. After adjustment
for differences in the number of trading days and seasonal variations, June sales were slightly better than
those in May. The seasonally adjusted index of sales
was 162 percent of the 1947-49 average in June, comPared with 160 in May and 170 in June last year.
Cumulative sales for the first half of 1961 were 1 perCent below sales in the same period of 1960.
Year-to-year sales comparisons in early July indiCated that consumers were responding to the stores'
USUal midsummer promotions. District department
store sales for the first 2 weeks in July were 1 percent
greater than in the comparable 1960 period.
-
Department store inventories in the District declined
less than seasonally during June but at the end of the
month were 5 percent below a year ago. The seasonally
DEPARTMENT STORE SALES
(Porcentege chenge in rotell veluor
Juno 1961 from
Area
Totol Eleventh District •••• •. • . •••
Corpus Christi ................. .
Delles ....................... .
EI Peso ••. .• ...•...•..........
Fort Worth ................... .
Houston •• •• ••••••.•..•••.•. . .
San Antonio ••••.•••• ••••••••••
Shreveport, La •..••••••..••••••
Waco •••••• • • ••••. •.• ••••••••
Other cities •• •• . . ...... • . • . .. .
Moy
1961
June
1960
6 months,
1961 from
1960
-10
-4
-1
-12
- 9
-13
- 1
-1
-13
-13
-3
-7
- 1
-7
-8
-11
-7
-8
-3
-5
-8
-7
-7
-7
-3
1
1
2
-3
-1
BUSINESS REVIEWI
8: 1961
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
CROP PRODUCTION
Eleventh Federal Reserve District
(In thousands of bushe ls)
(1947· 49
= 100)
SALES (Daily averag e)
~
Date
Unadjusted
adjusted
Unodiusted
156
159
160
149
170
177
160
162
179
186
177
170p
adiusted
192
179
178
183p
Pre li minary.
estimate d
July 1
1960
1950-59
July 1
1960
1950-59
Winter wheat. . . .
90,475
25,326
26,675
9,925
12,927
2,196
1,610
2,738
1,275
78,826
27,522
24,492
9,518
12,927
2,166
1,112
2,465
1,200
32,891
38,502
26,202
3,549
13,331
1,821
501
1,662
1,246
211,661
38,960
44,085
39,929
26,667
6,611
1,610
6,314
4,605
206,434
44,456
39,623
37,184
26,209
6,631
1,135
5,572
4,531
104,03 1
61,366
42,034
18,239
25,846
5,408
580
3,817
6,307
estimat ed
Corn . . . . . .... . .
Oats ••....••..•
Barley •••••. • . .
Ric e:! •. ••...• • ..
Hoy' •• • .• •• ... •
fla xsee d . ..... .
Jrish potatoes" . ..
Swe et potatoes" . .
adjusted index of stocks at the end of June was 183
percent of the 1947-49 average, compared with 178 in
May and 192 in June 1960.
Total registrations of new passenger cars in four
major market areas in Texas in June declined slightly
from May. Registrations in Houston and Fort Worth
were unchanged, but Dallas and San Antonio registrations were down 3 percent and 1 percent, respectively. Year-to-year decreases ranging from 2 percent
to 8 percent were recorded among the four areas. Cumulative registrations for the four areas combined in
the first 6 months of 1961 were 18 percent below those
in the same period last year.
Widespread and almost continuous rains during much of July
delayed field work in the District
except in Arizona, New Mexico,
and the Trans-Pecos area of
Texas. Excessive precipitation in southern, coastal, and
Low Rolling Plains counties of Texas resulted in damage to row crops, particularly cotton. Hot, dry weather
is needed throughout the District to promote development of the cotton crop. Ranges and pastures have continued to improve, and grasses in most sections are
unusually lush for this time of the year.
Cotton harvest in the Lower Rio Grande Valley and
south Texas was delayed by the July rains, and weeds
became an increasing problem in all areas of the State.
Cotton insect populations built up as continued showers
reduced the effectiveness of insecticides. Plantings for
the 1961 cotton crop in the District states, as of July 1,
are placed at slightly over 9 million acres, or 4 percent
above the year-earlier total but 17 percent below the
10-year (1950-59) average. At 7.1 million acres,
Texas see dings are also 4 percent larger than a year
ago. Increases are reported for Louisiana and Oklahoma, while decreases are shown for Arizona and New
Mexico. In the Nation, the 1961 cotton acreage is indicated at 16.6 million acres, which is 3 percent above
I BUSINESS
REVIEW
8: 1961
Av erag e
Averag e
Crop
Se asonally
1960, June. .... . .. ..
1961, April ..... . ....
Ma y .. . ... . ...
June . . .. . .. .. .
1961,
1961,
STOCKS (End of month)
Sea sonally
p -
FIVE SOUTHWESTERN STATES'
TEXAS
1
!!
3
Arizona, Loui siana, New Me xico , Oklahoma, and Texas.
In thou sand s of bag s conta ining 100 pounds e ach .
In thou sands of ton s.
" In thou sand s of hundredweight.
SOURCE, United States Deportme nt of Agriculture.
the acreage seeded in 1960 but is 18 percent under the
10-year average.
Harvest of the District's sorghum crop is running
somewhat ahead of a year ago, although frequent showers have slowed combining in south Texas, the Lower
Valley, and the Coastal Bend and have delayed harvest
in south-central areas. The excellent Blacklands sorghum crop is fully headed and is coloring all the way
to the Red River. Corn is mature in south Texas and the
Lower Valley, but most of the harvest thus far has
been for silage and "green chop." In south-central
counties, the crop is holding up well despite repeated
downpours. Corn in the Blacklands is in good condition
and has passed the roasting-ear stage.
Peanut planting is virtually finished in the District,
although weeds, grass, and leaf spot have become
troublesome. The rice crop in Louisiana and Texas has
made satisfactory progress but has reached a point
where continued rain could cause damage. Broomcorn
pulling in the District has progressed slowly between
CROP ACREAGE
(In thousands of acres)'
TEXAS
=
Harvest ed
For
Harvested
For
harv es t
--
FIVE SOUTHWESTERN STATES'
Average
Averag e
harvest
---
Crop
1961
1960
1950-59
1961
1960
1950-59
Cotton . ........
7,100
3,619
938
970
397
23
417
5,957
1,840
297
140
20
17
6,800
3,5B3
1,251
942
405
23
4 17
7,637
1,8 10
297
117
19
15
8,534
2,576
1,861
1,160
180
26
484
7,352
1,668
396
72
19
26
9,012
8,620
1,388
1,537
1,292
93
875
7,297
4,141
422
140
39
71
8,630
8,566
1,833
1,450
1,259
101
875
9,360
4,0 11
415
118
37
68
10,853
7,30 0
2901
1'841
'605
110
1 015
9'452
3'99 4
'550
75
41
114
Winter wheat •• ••
Corn .......... •
Oats ..... .... ..
Barley • • ••••• ••
Rye ............
Rice .•••... •• . •
Sorghums•.••.. .
Ho y ••• •• ..•• . .
Peanuts (alone) • •
Flaxseed •• ••• • •
Irish pC!>tatoes .. ..
Sweet potatoes ..
1
Arizona, Loui siana, Ne w Mex ico , O klahoma, and Texas .
SOURCE , United States De portment of Agriculture.
---
showers and is more than two-thirds complete. Compared with a year earlier, increases in output for the
District states are indicated for the 1961 crops of winter
wheat, oats, barley, rice, flaxseed, Irish potatoes, and
~weet potatoes. On the other hand, production of corn
~s estimated to be below that in 1960, and hay outturn
IS virtually unchanged.
Livestock in the District are mainly in good condition
as a result of the improved ranges and pastures. However, screwworm infestations have increased because
of damp weather. Ranchers in the Edwards Plateau
are shearing goats.
"'''.~''' ....''......., ,,"''''''''''''''''''1~...
''''
/11- ,9 {:'\./JIo ~' ~. \
1
During the 4 weekds ednded. July
12, investments an
eposits at
\~ ""F I NAN e
JJ.l the Nation's weekly reporting
\~~ et~1J) 1'$,Af
*;,/ member banks were reduced sub.....,,"'.....," ..............""."
stantially, while loans moved
moderately lower. Total demand deposits fell markedly,
but time and savings deposits expanded. The money
market was easy throughout the period, reflecting the
C?mfortable reserve positions of member banks, espeCIally the banks in the money centers. The rate on
Federal funds was generally 2% percent or below, with
the rate under 1 percent on a number of days.
The Treasury bill market was generally steady in the
week ended June 21 but, as demand developed from
bank and nonbank sources, evidenced a slightly firmer
tone the remainder of the period. The market rate for
91-day Treasury bills moved from 2.32 percent on
!une 14 to 2.26 percent on July 12. The market for
Intermediate_ and long-term Government securities displayed a generally heavy tone during the 4 weeks as
news of improved business conditions and the approach
of the August 1 Treasury refinancing dominated the
market.
Loans, investments, and deposits declined at the
W~ekly reporting member banks in the Eleventh DistrIct during the 5 weeks ended July 19. Cash assets and
total assets moved noticeably lower, and the liquidity
Position of these banks was reduced somewhat.
CONDITION STATiISTICS OF WEEKLY REPORTING
MEMB ER BA NKS IN LEA DING CITIES
Eleventh Federa l Reserve District
(In thousonds of dollars)
Item
July 19,
1961
June 14,
1961
July 20,
1960
Co~mercial and industrial loans •.• •. .•.• •••••
Agricultural loans ••••••••••••.•• • •••• ••••••
loons to b~okers and dealers for purchasing
1,508,179
39,062
1,504,581
34,948
1,474,707
30,789
U. S. Government securities • .•• • • .• .•.. . ...
Other securities •.. ••.••.• •
311
54,295
8,791
43,085
274
18,486
U. S. Government securities • • • • • •••• •• • •...
Other securities •• • •• •• •• • ••
loans to domestic commercial ba~ks' • •••••..••
loans to foreign banks ••••••••.. • ••. • .....•
l oans to other flnanclal institutions: . ..••......
Sal~s flnance, personal flnance, etc......... .
SavlOgs banks, mtge. cos., ins. cos., etc.••••• •
!fJa~;h~rar~a'~sans •••••...• • ••• • ••• • • ••. •. .•
4,735
230,909
29,462
128
4,442
215,639
13,076
35
10,231
179,502
80,892
347
........................... .
88,438
155,288
221,268
777,752
92,569
146,378
220,967
812,719
121,479
137,200
203,883
756,327
Gross loans ••••• •• •• • • •• • •• • .• ••.•••• . •
less reserves and unallocated charge-offs • •
3,109,827
55,990
3,097,230
56,535
3,014,1 17
55,285
ASSETS
or corrYlng :
Other loans for purchasing or c~;r~in'~:'
...... .
Net loans •...••.•••• . •••••......•.•••..
3,053,837
3,040,695
2,958,832
Treasury bills ••••.••..••• , ........ .. . . .. . .
Treasury certiflcates of indebtedness •....•• •••
Treasury notes and U. S. Government bonds
including guaranteed obligations, maturing:
Within I year .. . .. .. .................. .
After I but within 5 years • .• ••. .
After 5 years ........... . .. ... :::::: : : : :
O ther securities ••..••••.....•••.•.......•.
99,115
72,449
266, 141
71,849
147,362
24,418
243,716
608,960
459,239
401,114
202,34 1
642,900
457,352
396,775
6 1,817
840,724
28 1,374
346,525
Total investments •..•••..... . ••...•......
1,884,593
2,037,358
1,702,220
Cash items in process of collection •• • . . ......•
Balances with banks in the United States ••.....
Balances with banks in foreign countries •••• ••.
Currency and coin • • •••••....•• • •••••... '"
Reserves with Federa l Reserve Ba nk ••••.•.. •• •
Other assets • • • • •••••••••••• . ......... . ...
492,097
486,428
1,695
56,527
539,623
184,642
534,623
567,103
2,227
57,206
543,624
186,052
472,555
454,497
1,772
51,794
560,260
172,947
TOTAL ASSETS • . ••..• •....•..••....••
6,699,442
6,968,888
6,374,877
2,954,18 1
2,970,323}
2,686
62,184
186,54 1
2,452
196,308
2 14,045
995,942
12,055
52,929
1,120,489
12,253
53,893
895,847
13,295
43,856
4,266,518
4,569,763
4,292,922
lIA81l1TIES AND CAPITAL ACCO UNTS
Demand deposits
Indiv.iduals, partnerships, an d corporations • • ••
Foreign governments and offlcial institutions
central banks, and International jnstilutio~s
United States Government ••••••••• • • • •• : :
States and po/Wca l subdivisions ••..........
Banks in tho United States, including
mutual savings banks ••• • ••• • •• .. .•. " ••
Banks in foreign countries . . . ............ . .
Certlflod a nd offlcers' checks, etc . ••••. . ..••
Total demand deposils • • • • • ••••. .• •• •• •
Time and savings deposits
Individuals, partnerships, and corporations
Savings deposits • • •••••••••••• •• •• • •••
Other time deposits • •.. . ... . •. ... ...•. •
Foreign governments and offlcial institutions
central banks, and international institufio~s .•
U. S. Government, including postal savings •• •
States a nd political subdi visions .. ••• • • • .•••
Banks in tho United States, including
mutual savings banks • • • • •• ••. . •• . .••...
Banks in foreign countries • .••••••••.•.•..•
779,686
548,167
775,090}
540,290
6
7, 102
286,355
6
7,102
299,970
9,557
900
2,898,6 13
23 1,129
210, 182
1,050,381
8,849
225,584
9,324}
900
3,678
Total tim. and savings deposits •••. , ....•
1,631,773
1,632,682
1,288,492
Tota l deposits •• •• • . .•....•......•..
Bills payable, rediscounts, etc ..•.•..•.•. • .•..
All other 110 blllties • •••• , • •• •• ••.....•..•...
Capital accounts •• • . • • • .•.. , ...•••..•.....
5,898,29 1
122,000
86,240
592,91 1
6,202,445
80,800
99,279
586,364
5,58 1,414
154,60 1
83,331
555,53 1
Gross loans (excluding interbank loans) declined
TOTAlllA8111TIES AND CAPITAL ACCO UNTS. 6,699,442
6,968,888
6,374,877
$3.8 million, as a reduction in consumer-type loans offNOTE . - As a result of changes in ca ll report instruction s add ' f'
I '
Set the gains which occurred in other loan categories. is available, effective April 26, 1961, on the depo sit structure I fona Information
Comparable year-earlier figures will be shown when th ey become aOvai~~%~er bonks.
The largest expansion was in loans for purchasing or
~arrying securities. Commercial and industrial loans
~ncreased, with loans to petroleum, coal, ch~micals, a~d engaged in wholesale and retail trade, commodity dealubber manufacturers showing the most notIceable gam . ers, and the "all other" commercial and industrial loa
lIowever, significant decreases were reported for firms category. In the corresponding period a year earlie;
,
BUS I N ES S REVI EW
8 : 1961
I
gross loans fell $13.2 million, largely as a result of a
reduction in consumer-type loans.
excess reserves about unchanged. As a result of reduced
borrowings, however, free reserves rose moderately. An
expansion in free reserves at reserve city banks was partially offset by a decline at country banks, but reserve
positions remained comfortable at both reserve city
banks and country banks.
Total investments of the District's weekly reporting
banks decreased $152.8 million between June 14 and
July 19, primarily as a result of a $167.0 million decline
in holdings of Treasury bills. Treasury notes and GovThe demand for the four major
ernment bonds due in 1 to 5 years moved lower, while
petroleum products showed a
those maturing within 1 year advanced. Holdings of
contraseasonal decline of about
other Government securities maturing after 5 years were
3 percent in June; however,
slightly higher. Non-Government security holdings
stocks of these products adshowed a moderate expansion. In the comparable
period a year ago, total investments rose $103.8 mil- vanced less than seasonally, and the tone of refined
lion, as Government and non-Government security product markets was improved. One of the factors influencing refined product prices, especially along the
holdings both moved to higher levels.
Gulf and East Coasts, was the nationwide maritiIn e
Demand deposits of the District's weekly reporting strike that began in mid-June. Tanker movement
banks fell $303 .2 million in the 5 weeks ended July 19, slowed, and picketing by seamen's unions extended to
with substantial reductions occurring in United States petroleum refineries. One of the immediate results of
Government demand deposits and in deposits of domes- the strike was a 7-percent reduction in crude runs to
tic banks. Demand deposits of individuals, partner- Texas Gulf Coast refinery stills.
ships, and corporations were only slightly lower. Time
The trend established for refined product demand in
and savings deposits showed a small reduction for the
June continued in early July. Gasoline consumption
first time in more than a year, as gains in deposits of
individuals, partnerships, and corporations were more declined contraseasonally during the first half of JulY'
than offset by decreases in deposits of states and politi- but a stronger than anticipated demand for light and
heavy fuel oils litnited the reduction in total demand
cal subdivisions.
for the four major products. Stocks of refined products
An increase in required reserves absorbed virtually in mid-July were moderately above the month-earlier
all the gain in total reserves held by the District mem- level. Although kerosene inventories advanced lesS
ber banks in the 4 weeks ended July 5, 1961, leaving than seasonally during the period, residual fuel oil
stocks were 8 percent above a month ago and were
significantly greater than in mid-July 1960. The deRESERVE POSITIONS OF MEMBER BANKS
mand for residual fuel oil in early July was virtuallY
Eleventh Federal Reserve District
unchanged, but the increase in inventories was par(Ave rages of dail y figures . In thousands of dollars)
tially due to a substantial rise in residual fuel oil
4 weeks ended 5 weeks ended 5 weeks ended
imports.
July 6, 1960
June7,1961
July5, 196 1
Item
RESERVE CITY BAN KS
Total rese rves held • . . •• .. ....•
With Federal Rese rve Bank....
Currency and coin ...••••••..
Require d reserves ••... •. ......
Excess reserves ••••••...•..•••
Borrowings •••••• ••.•••• • •• • • •
Free reserves • •••• •••.•••••• • •
COUNTRY BANKS
Total reserves held •.•.•..•..• •
With Federal Reserve Bank....
Currency and coin ..•••.•....
Required reserves •• ••.• .......
Excess reserves ••••.... .. ... •.
Bo rrowings •• •.• •. ....• ....•..
Free reserves •.•..•..........•
ALL MEMBER BANKS
Total reserves held ••••..••••••
With Federal Reserve Bank ••••
Currency and coin •••••••••••
Required reserves •••• •.••••• ••
Excess reserves • •••••..••• ••••
Borrowings •• ••• •••• •••••• •.. •
Free reserves •••••••••••••••••
568,905
529,819
39,086
559,358
9,547
107
9,440
559,129
520,587
38,542
551,149
7,980
1,172
6,808
531,872
529,821
2,051
525,436
6,436
11,489
-5,053
513,211
413,951
99.260
445,829
67,382
740
66,642
513,811
416,556
97,255
444,882'
68,929
798
68,131
441,713
434,415
7,298
395,843
45,870
17,864
28,006
1,082,1 16
943,770
138,346
1,005,1 B7
76,929
847
76,082
1,072,940
937,143
135,797
996,031
76,909
1,970
74,939
973,585
964,236
9,349
921,279
52,306
29,353
22,953
I' BUSINESS
(Seasonally adiusted indexes, 1957-59
REVIEW
8:1961
= 100)
=============================================~
June
May
June
Indicator
1961 p
1961 p
1960
STIlLS (daily average) •••.•• •• •
DEMAND (daily average)
Gasoline • . • • ...•••..••. . .••••
103
104
105
103
166
101
87
101
106
175
113
9B
107
108
151
115
101
109
105
112
9B
B5
100
106
117
98
84
10 1
104
103
96
74
97
----~--~~~----------~--------~-----------
CRUDE OIL RUNS TO REFINERY
Kerosene ••••••••••••••••••••
Distillate fuel ail .......... . ... .
Residua l fuel oil ........ . ..... .
Four reflned products ••••••••
NOTE . - Beginning November 24, 1960, all currency and coin held by member
banks allowed as reserves; during the period December 1, 1959-November 23, 1960,
on ly part of such holdings was allowed.
110
NAT IO NAL PETROLEUM ACT IV ITY INDICATORS
STOCKS (end of month)
Gasoline •••••••••••• •• •••••••
Kerosene • • •••• •••• • • •• ••• •••
Distillate fuel oil ...... . ....... .
Residual fuel oil •••••••••••••••
Four reflned products ••••••••
-----------------------------------------------p - Preli minary .
SOURCES: Am erican Petrol eum In stitute .
United States Bureau of Mines.
Federal Reserve Bank of Dallas.
Crude oil stocks in the Nation in mid-July were almost the same as a month ago, as a reduction in the
demand for crude oil was offset by a decline in new
supplies. Imports of crude oil advanced 16 p~rcent in
early July, foll(l)wing a 14-percent decrease III June.
Daily average crude oil production and .crude run~ to
refinery stills in the Eleventh District, as I~ the ~atIOn,
Were virtually unchanged in J une ~ut .dec1ll1~d 111 early
july. Crude oil production in the DIstnct dunng August
should not deviate significantly from July because
Texas, New Mexico, and Louisiana allowables have
been held at about the same levels.
Drilling activity in the District generall~ impro~ed
in late June and early July. Total footage dnlled durmg
the 4 weeks ended July 10 advanced 1l.pe~cent, ~hile
the number of active rotary rigs in the DIStrIct declin.ed
Very slightly. The total number of well~ co.mpleted Increased fractionally as a significant nse . In ~orthern
louisiana more than compensated for declInes In Texas
and eastern New Mexico.
The Texas industrial production
index held steady, on a seasonally
adjusted basis, during June at
175 - an all-time high for the
month. A slight downward
movement in total manufactures was offset by a small
increase in the mining sector. Both durable. and nondurable goods registered slight output dec1~n~s. from
month-earlier levels over a broad range of actIVItIes but
showed year-to-year gains. Increased p:oducti?n in the
primary metals and chemicals industr~es dun~g June
Was offset by declines in transportatIO? eqmpment,
fOod cement electrical machinery, machInery, lumber,
"
.
fUrniture, apparel, and paper industnes.
INDUSTRIAL PROD UCTION
(Seasonally adjusted inde.es, 1947·49 = 100)
June
Ma y
1961
April
1961
June
1960
Total industrial production . .. . .. . .
Total manufacture s. . . . . . . . . . . . .
175
220
Durabl e manufactures. . . . . . . . . . .
255
Nondurable manufactures . .. . . . . .
Mining. • • . . . . . •• •. . •• . . . . . . • •
UNITED STATES
Total industrial production.... .. . .
Total manufactures . . . . . . . . . . . . .
Durable manufactures . ........ . .
Nondurable manufactures .. .. . . . .
Mining...... . .. .. ...... . .....
Utilities.. . .• . . . . . . • . .. •. . . . .•.
204
131
175
223
259
206
129
176r
220
256r
204
133r
171r
215
247
201
129
167
166
171
165
128
303
164
163
167
163
128
298
160
158
161
160r
129r
296r
166
165
171
163
128
289
Area and typ e of inde.
TEXAS
Preliminary.
R vi sed.
e
SOURCES , 80ard of Gove rnors of the Federal Reserve Sys te m.
Federal Reserve Bank of Dallas.
p r -
the low reached in February 1961 and 700 more than
in June 1960. Gains over May this year occurred in
all employment sectors except services and government.
Insured unemployment in Texas decreased slightly in
June, but total unemployment increased 38,000 from
May to a level of 230,400, or 6.1 percent of the State's
civilian labor force. Unemployment in Texas in June
1960 totaled 192,400, which is 5.1 percent of the
civilian labor force.
The value of construction contracts in the District
states in May totaled $340 million, or about the same
as both the month-earlier and the year-earlier levels.
Outlays for residential building showed a sharp increase of 18 percent during May to reach $161 million,
the highest level since August 1959. Nonresidential
building rose 4 percent, but public works and utilities
contracts declined 29 percent. During the first 5 months
of 1961, the total value of construction contracts in
the District states amounted to $1,676 million, which
is 3 percent above the comparable 1960 level.
NONAGRICULTURAL EMPLOYMENT
Nonfarm employment in the District states rose
6,700 during June to 4,490,300, which is 69,100 above
Five Southwestern States'
Type of employmont
_
Area and type
FIVE SOUTHWESTERN
~T~TES 1 •. . .. • •••.• • ••••
eSldential building • . . • •••
~on~eSid ential building . . . .
U
ubhc works and utiliti es •. .
~TEP
STATES.. .. ........
N
eSld. ntial building . . • • • • •
on residential building. . • •
P
ublit works and utilities.. •
-1
May
May
1961p
April
1961
May
1960
1961p
1960
340
161
114
65
3,501
1,553
1,105
843
339
137
110
92
3,298
1,454
1,050
794
339
148
106
85
3,337
1,453
1,110
774
1,676
691
521
464
14,639
6,207
4,779
3,652
1,629
687
430
512
14,123
6, 120
4,700
3,302
Arizona, louisiana, Ne w Me xico, Oklahoma, and Texas .
P - Prolimlnary,
f
d'
NOTE . _ Details may not add to tota ls beca use a roun Ing .
SOURCE , F. W. Dodg" Corporation .
Percent change
June 1961 from
Number of persons
VALU E OF CONSTR UCTI ON CONTRAC TS
January
1961 p
Total nonagricultural
wage and salary workers .•
Manufacturing . ....... . . .
Nonmanufacturlng . .. .... .
Mining ... . .... .... . . .
Construction . . .. . . .. . ..
Transportation and
public utilities . . . .....
Trade • •.•... . ... .• ...
Finance . .. . . . . . .... . . .
Service •. . .. . .. . . . . . ..
Government . ... .......
1 Arizona, louisiana,
0 Estimated.
June
196 1e
May
1961
June
1960r
4,490,300
775,700
3,714,600
244,500
300,500
4,483,600
768,200
3,715,400
242,700
296,000
4,489,600
793,100
3,696,500
249,600
317,600
0.1
1.0
.0
.7
1.5
0.0
-2 .2
.5
-2.1
-5.4
394,900
1,102,200
222,300
602,100
848,100
390,200
1,097,200
220,900
602,900
865,500
406,900
1,103,300
214,100
582,100
822,900
1.2
.5
.6
-.1
-2.0
-3.0
- .1
3.8
3.4
3.1
May
1961
June
1960
New Mexico, Oklahoma, and Toxas.
Revised .
SOURCES , State employment agencies.
Foderal Reserve 8ank of Da llas.
r-
BUSINESS
8:1961
REV I E~
11
I
I
CONDITION STATIST'ICS OF ALL MEMBER BANKS
BANK DEBITS, END-OF-MONTHDEPOSITS
AND ANNUAL RATE OF TURNOVER OF DEPOSITS
Elevenlh Federal Reserve Dis trict
(Dollar amounts in thousands )
(In mil,lions of dollars)
-=-
Debits to demand
Demand deposits l
deposit accounts l
Percent
change from
Annual rate of turnover
1960
269,550
4
7
83,367
347,150
-5
-4
47,228
0
1961
Area
1961
May
1961
1960
$ 137,823
23.5
22.6
22.4
4
3
50,278
174,206
19.9
23 .6
20.8
23.6
18.6
22.6
16
34,471
16.1
16.0
$
Jun e
Jun e
June
LOUISIANA
Monroe ............ .
Shreveport • .........
Amarillo .. .. . ... ... .
Austin ... . .. .. .. .. . .
Beaumont •....... . . .
Corpus Christi ..... . ..
Corsicana ... ........
Dallas ....... .......
EI Paso .............
Fort Worth ..... . ....
Galveston .... . ......
Houston •••• ••..•.. .
laredo . ............
Lubbock ... ..... ... .
Port Arthur • •••• . ••• .
San Angelo •••. •• ...
San Antonio •. ....• . .
Texarkana :! ••• . .•. . .
Tyler ...... .........
Waco ....... . .
Wichita Falls. .• ...• .
o
••
••
loans and discounts • . . .........•...•....
United States Government obligations..•• ..
Other securities • . ....•.•••••..•••••••••
Reserves with Federal Reserve Bank . •••. ...
Cash in vault e • .. . .......••.•....•.••••
Balances with banks in the United States •. ••
Balances with banks in foreign couotries e ... •
Cash items In proc ess of collection •• .......
Oth er assets e ... .............. . . .. ... ..
5,112
2,663
912
853
160
1,199
2
534
347
5,111
2,650
902
869
147
1,038
3
461
272
4,895
2,362
815
906
147
1,000
2
518
265
11,782
11,453
!.Q..910
1,248
6,533
2,756
1,127
6,444
2,733
1,075
6,358
2,215
Other Iiablllties e •••••••.• • ••••••••••• ••
Total capital accountse • . . ........•.....•
10,537
40
191
1,014
10,304
16
127
1,006
9,648
183
137
942
TOTAL LIABIlITIES AND CAPITAL
ACCOUNTSe ••••••••••••••••.•••••
11,782
11,453
lQ,9 10
16.1
30,
1961
June
ARIZONA
NEW MEXICO
Roswell .............
TEXAS
Abilene .......... ...
ASSETS
LIABIlITIES AND CAPITAL ACCOUNTS
102,033
224,010
226, 137
158,215
190,806
16,314
3,204,355
345,246
828,804
90,007
2,763,543
36,401
171,557
63,268
54,492
648,179
22,242
86,475
110,670
118,745
Total-24 cities •... •..• $10,208,794
1
4
-1
0
11
-12
-6
-3
-I
1
8
2
0
12
1
4
4
0
0
8
-2
6
21,
31
-3
-3
-5
0
-8
I
-3
4
-1 -10
-8
2
2
4
1
-4
-I
6
70, 132
122,019
155,262
100,269
104,854
19,461
1,213,427
164,921
385,151
64,650
1,295,436
23,234
110,153
44,023
45,604
380,305
16,774
60,639
66,915
99,553
17.6
22.9
17.8
19.3
21.7
10.2
32.4
24.7
26.2
17.2
25.8
19.7
18.6
17.5
14.0
20.5
15.8
17.3
19.6
14.6
18.0
24.0
19.8
20.5
21.8
9.6
32 .2
23.2
25.7
17.3
25.9
17.3
19.1
18.8
15.1
21.2
15.8
18.5
18.1
15.0
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
$4,939,560
25.1
25.1
D ema nd deposits of banks . •.•....•••••. .
24.6
Other demand deposits ..................
Time deposits •••... .. ... . . . . ... .. ......
Total deposits • •• •••••••••••••• •• ••••
Borrowings e •. •.. ... ••• ..............•.
e -
E s t ima~ed.
GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
Eleventh Federal Reserve Dis trict
(Averages of daily Agures . In millions of dollars)
~
1 Depos its of individual s, partners hips, and corporations and of states and political
subdivisions.
!! These figures include only two banks in Texarkana, Texa s. Tota l debits for all
banks in Texarkana, Texa s· Arkansa s, including on e bank located in the Eighth District ,
GROSS DEMAND DEPOSITS
CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS
(In thousands of dollars)
Date
Total
city bonks
Countr y
banks
Total
Reserve
city banks
Country
banks
7,678
7,473
7,828
7,846
7,888
7,643
7,752
3,77 1
3,726
3,805
3,877
3,903
3,743
3,829
3,907
3,747
4,023
3,969
3,985
3,900
3,923
2,177
2,191
2,670
2,700
2,723
2,736
2,745
1,135
1,098
1,366
1,376
1,379
1,382
1,380
1,042
1,093
1,304
1,324
1,344
1,354
1,365
Reserve
June ..... .
June 14,
1961
July 19,
1961
Item
Total gold certiflcate reserves .•... .•••. .. •••
Qiscounts for member banks . • •..• •. .•••.•.•
Other discounts and advances • •• .. ... .. .. . .
U. S. Government securities .• . . ........••...
Totol earning assets ... .. .. ... ............ .
Member bank reserve deposits .•... ........ •
Federal Reserve notes in actual circulation ••••.
703,730
5,974
o
1,079,068
1,085,042
908,634
838,688
666,708
1,225
116
1,090,377
1,091,718
896,199
830,918
TIME DEPOSITS
1959: June ••••••
1960: June ••••••
1961 : February ••
March .... .
April ......
May •• •• ..
amounted to $50,915,000 for the month of June 1961.
July 20,
1960
675,180
33,342
o
1,063,673
1,097,015
948,604
795,704
BUILDING PERMITS
============================~
VALUATION (Dollar amounts in thousa nds)
-------------------------------------Percent change ___
June 196 1
NUMBER
DAILY AVERAGE PRODUCTION OF CRUDE OIL
Jun e
Area
(In thousands of barrels)
Jun e
Area
ELEVENTH DiSTRICT .•••.•• •
Texas ................ . .
Gulf Coast • ..••..•.•••
West Texa s •. .........
East Texas (proper) .....
Panhandle ••..••.••.••
Rest of State ••••••..••
Southea stern New Mexico .•
Northern Loui siana ••• •....
OUTSIDE ELEVENTH DISTRICT.
UNITED STATES ............
1961p
2,857.3
2,477.2
443.4
1,113.7
127.8
104.9
687.4
269.3
110.8
4,180.3
7,037.6
May
1961p
2,847.1
2,460. 1
444.3
1,105.4
124.7
102.9
682.8
276.8
110.2
4,2 14.9
7,062.0
Pre liminary.
SOURCES : American Petroleum In stitute .
United States Bureau of Mines.
Federal Reserve Bank of Dalla s.
p -
BUSINESS REVIEW
'8:1961
1961
6 mos.
1961
from
1961
6 mos.
1961
Jun e
6 months,
1961 from
1960
May
1961
June
1960
61
7
22
--------------------------------------------------------------ARIZONA
Percent change from
12
J~ne 29,
1960
May 31,
1961
TOTAL ASSETse ...... .. .............
May
1961
June
Tucson •.•• ..• • •.••••
June 28,
1961
Item
June
1960
2,877.4
2,502.2
448.6
1,132.2
129.7
106.0
685.7
246.3
128.9
4,061.3
6,938.7
May
1961
0.4
.7
-.2
.8
2.5
1.9
.7
-2.7
.5
-.8
-.4
958
5,514
$ 4,704
$ 24,569
1,405
8,130
2,823
21,140
10
-15
45
728
1,770
2,059
1,840
1,872
13,488
3,538
3,641
75 1
8,400
1,369
1,181
7,219
1,570
1,611
2,338
6, 120
4,423
1,856
1,821
12,264
5,127
5,842
309
27,306
2,396
653
5,437
706
1,249
8,417
20,085
29,405
7,815
9,943
105,457
36,378
31,420
3,013
130,654
23,339
4,076
27,066
9,795
11,760
119
118
- 17
58
66
-42
- 17
-22
40
-22
-33
-17
4
-68
-50
2
103
25
6
64
9
28
55
17
- 19
-12
-14
18
-41
-39
-20
9
23
7
54
53
54
18
_26
10
3
-30
Wichita Fall • ••
109
302
369
324
332
2,789
610
623
113
1,475
204
227
1,252
290
594
Total-17 cities ..
11,976
64,681
$85,374
$504,332
-15
Tucson • . • . . ..•
LOUISIANA
Jun e
Shreveport • •. .
1960
TEXAS
Abil.ne ...... .
Amarillo ..• •••
-0.7
-1.0
-1.2
- .6
1.5
-1.0
.2
9.3
-14.1
2.9
1.4
Austin . . ....• .
Beaumont. . . . .
Corpus Christi ..
Dalla s ...... ..
EI Paso ...... .
Fort Worth .. ..
Galveston •• . • .
Houston • . ....
Lubbock •...••
Port Arthur ••. •
San Antonio . .•
Waco •...... .
_6
o
_8
19
---------------------------------------------------------
