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