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business
•
revIew
august 1968
FEDERAlL RESERVE
BANK OF DAllAS
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
contents
economic boom
through r.nidyear ..... . ............ . . .. . ... .
district highlights . . ........................ .
3
14
economic boom
th,·ough midyea,.
I The Nation's economy operated at boom
evels during the first half of 1968. The rise in
tOtal spending for goods and services was at a
rate well above that which could be maintained
Without a continuation of excessive upward
~ressures on prices. The surge in economic acltvity during the first 6 months of this year
Stemmed, to a major extent, from vigorous
C?nsumer spending, even though there was conSiderable slackening in such spending in the
second quarter.
The peace negotiations with North Viet-Nam,
uncertainties and surprises in national political
developments, and recurring social unrest were
other conditioning elements during the first part
of 1968, Further, the delay in the enactment
of fiscal measures until the latter part of June
placed upon monetary measures an inordinate
share of the burden of moderating aggregate
demand.
b In addition to the dominant strength provided
/ consumer spending for personal consump,IOn items, there were increases in expenditures
~n mOst other major sectors. Outlays for ho08:ng, inflated by rapidly rising costs, continued
0
, move upward, despite the fact that mortgage
~ntere~t rates remained close to historical highs.
pendtng for business fixed investment also rose
mOdestly, and purchases by all levels of gov~nment advanced from the highs reached in
e final quarter of 1967.
Gross national product advanced sharply during the first half of 1968 to reach a seasonally
adjusted annual rate of $850.8 billion in the
April-June period. The rise of nearly $40 billion in total GNP from the final quarter of
last year represented an annual rate of growth
of 9.8 percent, as compared with an annual rate
of 7.9 percent during the last half of 1967. As
measured in constant prices, however, GNP
rose only 5.8 percent during the first half of
1968. In other words, not far from 50 percent
of the increase in GNP on a current-dollar
basis reflected advancing prices.
Vi buring the first half of 1968, the economy
n a~ bUffeted by diverse domestic and intermattonal events. The international monetary
S e~hanism was subjected to some severe
t
raIDs. In March a "two-tier" gold price was
eSt b'
'
de a l~shed to prevent further rapid, speculative
Pletion of the monetary gold stocks of major
Part' .
W IClpants in the gold pool. A development
'
inlt~major long-run implications occurred later
tak arch and April, when decisive steps were
sp e~ to establish the long-discussed plan for
oneclal drawing rights. Subsequently, pressure
un the French franc stemming from internal
Onr~st in France created an additional burden
al International exchange markets. Pressures
So Continued on the British pound.
economic developments
Despite the strong rise of GNP in each of the
quarters during the first half of this year, the
character of the growth in the first quarter of
1968 differed materially from that in the second quarter. Final sales increased quite briskly
during the first quarter of the year, and the
rate of inventory accumulation slackened appreciably. In the second quarter, final sales slowed
markedly, and a larger proportion of the total
GNP rise was accounted for by a stepped-up
rate of inventory building. Moreover, purchases
by the private sector comprised a much smaller
proportion of final sales than in the J anuaryMarch period, reflecting a moderation in the
business review / august 1968
3
pace of consumer spending and a reduction in
outlays for business fixed investment.
Personal consumption expenditures, which
had shown modest increases during the last half
of 1967, rose sharply during the first half of
1968 and accounted for about 63 percent of the
total dollar gain in GNP. Consumer spending
was especially brisk in the first quarter but
tapered substantially in the second quarter,
partially because of civil unrest and the dampening effects of two assassinations. The uncertainties generated by the potential tax increase,
the restrictive effects of monetary policies, and
the continued disturbances in the international
financial market also contributed to a lessening of consumer confidence.
Expenditures for durable and nondurable
goods and services all expanded during the first
6 months of 1968. Apparently, many merchants
were surprised by the vigor of retail sales, and
inventory accumulation in the early months of
RETAIL SALES AND INVENTORY CHANGES
{Se as onally adju st cd)
INVENTORV CHANGE
SALES
BILLIONS OF DOLLARS
1966
MILLIONS OF DOLLARS
1967
II · Prt:tl lrn,nol'l .
SOURCE: U. S. Dc p a rlIT1(HlI of Comm or ce .
4
1968
the year was held at a low level. During tbe
January-June period, retail sales averaged 7
percent above a year earlier.
Although the strength in retail sales was
rather general among durable and nondurable
lines, sales of automobiles were especially
buoyant. Sales of domestically built cars were
at an annual rate of 8.3 million units during
the first half of the year, well above the stvike~
affected pace of 7.4 million units in the fin a
quarter of 1967. Further, sales of imported c~s
continued on an uptrend and increased their
s
penetration of the U.S. market, with such sa!e
approaching an annual rate of 1 million unitS.
The accelerated sales pace was triggered bY
a rapid increase in disposable personal income
and the inclination of consumers, at least f~r
a time, to spend a larger proportion of thel~
income. Disposable personal income rose $26 ..
billion during the first half of 1968, whicb IS
well above the $18.1 billion gain in the last
half of 1967. Although the savings rate retreated from 7.8 percent during the final quarter of 1967 to 7.1 percent in the first quarter
. uS
of 1968, the consumer became more cautlO
in the second quarter, and the savings rate
moved back up to 7.7 percent.
The recovery in residential construction continued to provide positive support to the ec~n
omy through mid-1968. Outlays for housl~g
rose further from the sharply improved levee~
reached during the last half of 1967, partIy r d
flecting rapidly rising construction and l~l
costs. Housing starts averaged nearly 1.5 rn~;
lion units during the first half of the year, or
5 erpercent above the average for 1967 and 2 P tb
cent above the depressed level of 1966. In bO
M ay and J une of the current year, h 0 wever,
'r
el
housing starts turned downward from tb
y
highs in early 1968, as restrictive rnonet~e
policies and higher interest rates dampened tS
mortgage market. The building of apartrn e\
has been a major factor in the strength in reS
dential construction.
DURABLE GOODS PRODUCT/ON
1957 ~59 =IOO
185
{Seas on ally adju s l ed ind oxas}
r;:-:===========--===::::::;'I
MOTOR VEHICLES AND PARTS
175
165
155
145
135
125
1966
1967
1968
P' Pt e llnlln a ry .
SOURCE : Board o f
~Oll c rnor B,
Fed oral Rese rve S)l st cm.
'the rate of spending for plant and equip-
~ent thus far in 1968 has exceeded the pace
g . sUch outlays a year ago, with most of the
c~ln Occurring during the first quarter. Espellally noteworthy increases in investment outpays in the first half were made by mining,
cublic utilities, and communications firms and
a~il1111ercial enterprises. Manufacturing firms
o
i S boosted spending slightly, but the modest
U~l~ease probably reflected the margin of unh ll~ed capacity, with the rate of utilization
o ding close to 84 percent since mid-1967.
t 'the trade balance of the United States nare~\Ved sharply during the first half of 1968. Net
$lO~ts. of goods and services averaged about
to $bl 1h on between 1961 and 1966, declined
R_ 4.8 billion in 1967, and eased during the
'lfSt 6
$1 8 .months of the current year to around
~ . bIllion on an annual-rate basis. During
tta~Ch, May, and June, deficits on merchandise
Stee~ oC~urred. Heavy imports of copper and
dunng the first quarter were one reason
for the declining net exports; imports of automobiles also were high. The small surpluses
realized on merchandise trade during the first
two quarters were critical because of the balance-of-payments deficits incurred as a result
of adverse balances for capital flows. Overseas
military expenditures during the first quarter of
this year continued to be close to the high level
in the previous quarter.
Although the private sector of the economy
accounted for the major part of the gain in
GNP during the first half of 1968, around 30
percent of the dollar rise stemmed from increased purchases by all levels of government.
Total government expenditures rose 13 percent,
on an annual-rate basis, during the first 6
months of this year as compared with the fourth
quarter last year. Defense spending had moderated during the second half of 1967, but a
sharp resurgence of spending has occurred in
1968, partly due to the additional military requirements stemming from the Viet Cong offensive. In addition, there have been further rises
in nondefense outlays of the Federal Government this year, and purchases of goods and
services by state and local governments have
continued their historical uptrend.
The rapid rate of "real" growth in the economy through midyear was mirrored in industrial
production and employment. Strikes in the
automotive industry and copper mining had a
particularly dampening effect on the growth
of industrial output during the last half of
1967; by November, however, industrial production was increasing at a rapid rate and
reached 162.0 percent of its 1957-59 base in
December. After holding around December's
high level during the first 2 months of 1968,
industrial output began to advance and, by
June, reached 164.4 percent of its base. Total
output during the first 6 months of 1968 averaged 3 percent above the strike-depressed level
of the last half of 1967 and 4 percent above the
comparable period a year earlier.
business review/ august 1968
5
The gain in industrial output through mid1968 was largely centered in industries producing steel, copper, automobiles, petroleum,
chemicals, furniture, paper and printing, construction materials, and electricity. Output in
the important machinery industry was slightly
lower than in December 1967, as production
of business equipment trended downward and
output of defense equipment eased until the
surge in June. The output of textiles and related products and of foodstuffs and beverages
remained virtually on a plateau.
Output trends for copper, steel, and glass
were heavily influenced by strikes or threatened
strikes. Production of copper rebounded sharply
in April following the settlement of a lengthy
strike, while a substantial gain in the output
of steel occurred as strike-hedge orders for
steel were superimposed upon the steel orders
placed by automobile makers to meet expanding sales and to build up dealers' stocks. Automobile production during the second quarter
EMPLOYMENT TRENDS
PERCENT
{Sea s onally adjusted )
5
3
2
74
1966
p - Prclim i n a r y,
SOURCE : U, S. Oep 3rlnl Cnt of labor .
6
1967
1968
PRICE MOVEMENTS
( 1957 _ 5 9= lOO)
PERCENT
125
115
105 1 ~-~:~
1966
1967
SOURCE: U.S. De p artm ent of La bor.
of )968 was at an annual rate of 9.1 rniJlio~
UllltS, and new-car inventories by midyear ba
reached 1.7 million units. The enlarged stocles
of steel and automobiles were the significant
factors in boosting the rate of total inventory
accumulation from $2.1 billion in the first qua~
s
tel' to $8.4 billion in the second quarter. Tbl
inventory accumulation provided a boost to ec~
S
nomic activity during the first 6 months of tbl
year, but the strike-hedge stocks of steel ar~
likely to be absorbed during the last balf 0
1968.
Labor markets continued generally firm during the first half of 1968, with the unem pJoY;
ment rate for all workers holding close to 3:
percent of the civilian labor force except I~
t
June, when an influx of out-of-school yoU
8 erin the labor market pushed the rate to 3. P d
cent. Unemployment rates for married men a~e
experienced workers remained well beloW f
rate for all workers. During the final quarter Os
last year, the jobless rate for all workers wa
about 3.9 percent.
. Nonagricultural wage and salary employment
Increased more than 800,000 during the first
half of 1968, or by a somewhat smaller amount
than during the previous 6-month span. The
slower employment rise ,during the first half
?f this year principally reflected a slackening
In employment gains in trade, contract conS
trUction, and manufacturing. The smaller pool
of Sled manpower also moderated the growth
k'll
rate of employment. Within manufacturing,
11l0st of the uise in the work force occurred at
I~ondurable goods manufacturers. It appears
t at the output gains by durable goods firms
were achieved by longer hours of work and by
greater productivity.
. Within an environment of rapidly expandIng aggregate demand and pressure upon labor
resourc es, 1t . not surpnsmg that most com. 1S
..
prehensive measures of prices continued to advance. Labor cost per unit of manufacturing
~Utput rose from last year's high level to a new
:~CO~d. Major contract negotiations, as well as
el: Increased minimum wage levels, helped to
Vate wage rates.
financial developments
During the first half of 1968, major domestic
financial developments included a monetary
policy which moved further toward a position
of restraint, interest rates which advanced to
record levels in both money and capital markets, a significant reduction in the growth of
bank credit, and the continuation of very heavy
demands for funds. In the international area ,
the U.S. balance of payments improved in the
first quarter, despite a severe decline in the
trade surplus, but remained a serious problem.
The Federal Reserve moved to intensify the
restraint which it had begun in late 1967. In
the first 3 months of 1968, the System used
each of its three major tools of monetary control- open market operations, reserve requirement changes, and discount rate adjustmentsRESERVE POSITION OF MEMBER BANKS
MILLIU I~~!!;J;!J~===========iiiiOI
.In a manner similar to the 1967 experience,
P~ es at the consumer level rose successively
each
19 mon th to reach 120.9 percent of the
57-59 base in June 1968, showing an annualrate .
p . gam of over 4 percent for the 6-month
t~rlod. This rate is the highest attained since
~ Korean war period of 1951. The largest
P
.
v'rIce gams h ave taken place in consumer seres , for which labor inputs constitute a major
plc
art of total cost.
+800
19~holesale prices during the first half of
o
b ' rose over 3 percent on an annual-rate
a
p/IS. The most pronounced gains occurred in
l>r~ces of farm products and processed foods.
.
.
..
WhICes fo r 10dustn al commodItIes eased somequ at in the spring, mainly due to the lower
Co otes for steel scrap and reduced prices for
th~P:r and copper-related products following
ind settlement of the prolonged strike in the
Ustry.
1600
+400
- 200
-400
1966
1967
1968
p .. Pr olimln lll }'.
SOURCE : Doard of GO'Jornor s, Fod or a l Rese rI/O Syu em.
business review/august 1968
7
to secure the desired degree of restraint. The
reserve position of member banks shifted to a
deep net borrowed figure by March and remained under similar pressure throughout the
rest of the first half; reserve requirements on demand deposits were increased in January; and
the discount rate was raised in March and again
in April, thereby reaching the highest level since
1929.
Through open market operations, the System
restrained the growth of reserves available to
the banking system. As a result, total reserves
of member banks showed only a small increase,
nonborrowed reserves changed only slightly
since much of the increase in total reserves was
the result of greater use of the discount window,
and net free reserves became negative. From an
average net free reserve position of $107 million in December 1967, member bank reserves
deteriorated to an average net borrowed figure
of $315 million in March and remained at over
$300 million through June. Similarly, borrowings from the Reserve banks rose from an average of $238 million in December to $671 million in March and averaged over $700 million
in both May and June.
Federal Reserve System holdings of U.S.
Government securities, on a monthly average
basis, increased $2.2 billion in the first half,
which is slightly greater than the $2.1 billion
rise in the first half of 1967. It should be noted,
however, that much of the increase stemmed
from defensive operations designed to offset the
reserve effects of international transactions,
particularly the decline in the gold stock.
The Board of Governors, on December 27,
1967, announced an increase in the reserve requirements on demand deposits, effective January 11 for reserve city banks and January 18
for country banks. The action lifted reserve requirements on demand deposits in excess of $5
million from 161,1z percent to 17 percent for
reserve city banks and from 12 percent to 12lh
percent for country banks. It has been esti-
8
mated that this action increased required reserves by about $535 million.
The discount rate was advanced twice in the
first half. In late March, following the crisis in
the gold and foreign exchange markets, the
Board of Governors announced approval of
the actions of the directors of the Federal Reserve banks in raising the discount rate frol1l
41,1z percent to 5 percent. In late April, the
Board announced another lh -point increase
in the discount rate. At that time, the Board
also announced increases in the maximum rates
payable on negotiable time certificates of deposit issued in denominations of $100,000 of
more. The increases in maximum rates payable
on the large CD's were prompted by the threatened heavy runoff of these instruments as higbef
open market interest rates made the CD'S lesS
competitive.
Interest rates in money and capital market~
rose to record levels in the first 6 months 0
1968, reflecting both the generation by the surg
d
ing economy of large demands for funds an h
the restraint on the supply of funds throUg
System action. The increase in money Jllark~t
rates was considerably greater than that ill
SHORT-TERM RATES
PERCENT PER ANNUM
7.0
SOURCE ; Boa rd of GOV.H OO f$j
F Cl d O I ~ 1
Rese r ve Sy st oll1 .
capital market rates since money market rates
had remained well below their 1966 highs
throughout 1967 while capital market rates had
advanced to new high ground last year. In general, interest rates in both money and capital
tnarkets reached their peaks in mid-May. How~ver, such rates then receded, with the reduction
l~ money market rates being particularly nohceable. The decline in yields after mid-May
resulted from favorable pUblicity concerning
the passage of the surtax proposal and, then,
from the passage of the bill in late June.
Money market rates adjusted upward fairly
~teadily from December through May, advanc-
illg 40 to 70 basis points, on a monthly average
b~Sis, over the period. For example, the market
Yield on 3-month Treasury bills rose from an
average of 4.96 percent in December to 5.65
pe~cent in May, showing a gain of 69 basis
POlUts. Increases in market rates on longer~errn Treasury bills were also sharp but were
ess pronounced than those for 3-month bills.
The effective rate on Federal funds, especially
affected by the two discount rate increases and
~e substantial pressure on bank reserve positIons, spurted upward, rising from a monthly
LONG-TERM RATES
PER CENT PER ANNUM
6. 5
r.==============::;:;::=;;;ii
5.5
average of 4.51 percent in December to 6.12
percent in May, or over 150 basis points. In
terms of basis points, the gains in the less sensitive money market rates from December through
May more closely paralleled the rise in 3-month
Treasury bill rates and were as follows:
Commercial paper . . . . . . . . . . . . . 62
Finance company paper . . . . . . . .. 56
Bankers' acceptances . . . .. ...... 61
Money market rates reached their peaks in
mid-May and then declined as prospects brightened for the passage of the surtax. From midMay through early July, the market yield on
Treasury bill issues and the effective rate on
Federal funds, on balance, declined moderately.
However, the rates on the less sensitive money
market instruments remained at or near their
May peaks.
Interest rate advances in the capital market
were much more restrained than those in the
money market during the first half of 1968, with
most increases being less than 15 basis points.
Again, as in the money market, rates reached
their peaks in mid-May. The reductions in
yield levels after mid-May, however, were relatively modest, on balance, as the higher rate
levels were supported by the heavy volume of
current and prospective new issues of corporate and municipal securities. In the last week
in June, yields on U.S. Government long-term
issues averaged 5.30 percent; state and local
government issues, 4.18 percent; and Aaa corporate issues, 6.27 percent.
The prime rate (the rate charged by commercial banks to their most creditworthy customers for short-term unsecured loans) was
raised once in the first half, on April 19, immediately following the second increase in the
discount rate. On that date, the prime rate was
raised to 61;2 percent, the highest level since
the rate came into general use in the 1930's.
4.5
1966
SOURCE.
•
1967
. Board 01 Gov e rnor s, Fodoral RCSC! \l C Sy stom .
1968
Bank credit rose only moderately in the
first half of 1968. Total bank credit (loans ad-
business review/august 1968
9
COMMERCIAL BANK LOANS
AND INVESTMENTS
(As of
BILLIONS OF DOLLARS
I~st
Wodnesday of month)
IS • .,onallyadjo,lod)
235
220
205
190 ~~~~::~~~~~~~====dU
70
r===_g;~=-===;]
60
50
1966
1967
1968
p .. Prollmlnary .
SOURCE: Board of Governors. Feder,l Roservo Sy stem .
CUMULATIVE BUSINESS LOAN CHANGES
AT WEEKLY REPORTING BANKS
(A s of second and last Wedne sday of month)
justed and total investments) at the Nation's
commercial banks expanded an estimated $10. 7
billion, or at a seasEmally adjusted annual nate
of 6.2 percent; this is considerably below the
9.9-percent increase in the first half of 1967.
Of the $10.7 billion expansion in total banJc
credit for the period from December 1967 to
June 1968, $8.3 billion - or about threefourths - was accounted for by loan grow~,
while only $2.4 billion reflected increaseS In
the securities portfolio of the commercial banks.
In contrast, from December 1966 to June 1967,
with relatively modest loan demand and heavy
deposit inflows, total investments grew $9.3
billion and accounted for slightly over 60 percent of the total rise in bank credit.
The loan-deposit ratio at the Nation's commercial banks rose quite sharply, advancing
from 63.8 percent in December 1967 to 65. 7
percent in May and to an estimated 66.4 pe~
cent in June. The rise in the loan-deposit rat~O
in the first half contrasts with a small decline In
the first half of 1967 but is slightly larger tban
the gain in the first 6 months of 1966, when loan
demand was also heavy and deposit inflows were
curtailed by a restrictive monetary policy.
BILLIONS OF DOLLARS
The more rapid increase in commercial banJc
loans adjusted in the first half of 1968 thall
in the first half of 1967 primarily reflected ~
sharp upsurge in the rate of growth of rea
estate loans and consumer loans. On a seasonally adjusted basis, real estate loans grew about
twice as much as in the first half of 1967, undoubtedly because of the increase in construe~
tion expenditures; and consumer loans expande
almost three times as much as a year earlier, b~t
the expansion was in line with the sharp rise In
consumer spending, particularly for auto)110biles. Growth in consumer and real estate loanS
slowed, however, in the second quarter.
+14
+12
+10
+8
+6
+4
+2
SOURCE : Board
10
or
Governor s. Foder al Ro so rv o Sy st om.
Business loans, the largest component of total
loans, advanced slightly less than in the pre~
e
vious year, even though there was a )11U
more rapid expansion in the Nation's eco no )11Y'
In part, this relative slowness may reflect busi~ess decisions to issue new commercial paper
In large quantities, as well as the heavy supply
of new capital issues. After mid-March, however, the rate of growth of business loans accelerated, as these loans were affected by tax
paYments and steel inventory accumulation.
In spite of monetary restraint, the money
S
Upply continued to expand at a rapid rate in
the first half of 1968. The substantial growth
of the money supply apparently reflected both
a. rundown in Treasury deposits and an expansion in the demand for money for transaction
Purposes as the current-dollar GNP surged
~Pward. In contrast, however, time and savlUgs deposit inflows slowed markedly, princiPally as a result of intense competition from
MONEY SUPPLY AND TIME DEPOSITS
BILLIONS OF OOLLAR S
(S o aso nall y nd justo d)
190
lao
170
160
COMMERCIAL BANK
TIME DEPOS ITS ADJUSTED
Il ~ Pr O li rn lna ry.
SOUR CE,
1966
1967
. Boar d of Gov ernor' s, Fo der a l RO$(J I" VQ 5Y 9t OIll.
1968
higher open market rates. The money supply
rose $5.9 billion, or at a seasonally adjusted
annual rate of 6.5 percent, in the period from
December 1967 to June 1968; this is about
the same percentage gain as in the first half of
1967, when the System was pursuing a policy
of stimulating the economy. On the other hand,
time and savings deposits advanced only $4.6
billion, or at a seasonally adjusted annual rate
of 5.0 percent, in the first half, which is less
than one-third of the percentage gain in the
frrst half of 1967.
Flows of funds into savings and loan associations and mutual savings banks in the Nation moderated from their exceptionally rapid
growth in early 1967. At the savings and loan
associations, share accounts held by the public
advanced an estimated $3.0 billion in the first
6 months of 1968, which is considerably below
the $5.4 billion gain in the first 6 months of
the previous year. Similarly, inflows at mutual
savings banks amounted to about $2.1 billion
in the first 'half of 1968, down from the $2.8
billion advance in the first 6 months of 1967. In
both cases, however, the inflows of funds were
substantially above the 1966 figures.
Demands made upon the capital market by
corporations, state and local governments, and
the Treasury continued very heavy in the first
half. While security offerings were somewhat
below the amounts for the first half of 1967
for corporations and state and local governments, it should be pointed out that the amounts
of new securities sold by these institutions in
the 1967 period were at record figures and,
also, the monetary climate of the 2 years differs
markedly. In the case of the Treasury, however,
new money raised in the first half of 1968 exceeded the amount in the first 6 months of
1967 by a considerable margin.
Corporate security offerings in the first 6
months of 1968 aggregated an estimated $11.1
billion, down slightly from the first half of 1967.
The great majority (over 80 percent) of these
business review/august 1968
11
new issues were bond offerings. While the
value of publicly offered corporate bonds declined moderately in the first half from the first
6 months of 1967, the value of privately offered issues advanced over the 1967 figure,
thus partially moving the ratio of publicly
offered to privately offered bonds toward a
more normal historical relationship.
Bond offerings by state and local governments were an estimated $7.5 billion in the
first half of 1968, or only slightly below the
record figure in the first half of 1967. Many
of these issues were industrial revenue bonds
(a type of bond which has come into favor
in the past few years), although recent legislation may reduce their magnitude after this
year. The heavy supply of municipal issues occurred despite a monetary environment that
produced a number of cancellations of anticipated bond offerings.
Treasury demands upon the money and
capital markets were intense in the first half
of 1968. A total of $13.3 billion in new money
was raised by the Treasury in the January-June
period, consisting of $2.5 billion of Tax Anticipation bills in January, $4.3 billion of notes
in February, $3.4 billion of notes in May, and
$3.1 billion in additions to the regular bill offerings. The $13.3 billion in new money raised by
the Treasury was more than triple the amount
of new borrowings in the first half of 1967. On
June 26, the Treasury announced the auction
of $4 billion of Tax Anticipation bills in early
July. In addition to raising new money in the
first half, the Treasury also refunded $9.4 billion of notes and bonds and prerefunded $3.0
billion of notes and bonds.
iniprovement in capital flows, which more than
offset a substantial decline in the trade surplus.
Measured on the liquidity basis (that is, by
changes in U.S. official reserve assets and in
U.S. liquid liabilities to all foreign residentS),
the deficit was at a seasonally adjusted annual
rate of $2.4 billion in the first quarter. This is
less than the deficits of $7.0 billion f0r the
fourth quarter of 1967 and $3.6 billion for the
full year 1967 but is slightly greater than the
$2.0 billion deficit in the first quarter of last
year. Measured on the official reserve transactions basis (that is, by changes in U.S. official
reserve assets and in liquid and nonliquid liabi~
ties to foreign official agencies only), the defiCit
also improved. The deficit on this basis was at a
seasonally adjusted annual rate of $2.0 billion
in the first quarter, down substantially from the
figures for the last quarter of 1967, the full year
1967, and the first quarter of last year.
Merchandise exports from the United States,
excluding military items, advanced from a seasonally adjusted annual rate of $29.9 billion
in the fourth quarter of 1967 to an annual rate
of $ 31. 7 billion in the first quarter of 196 8,
U.S. BALANCE OF PAYMENTS
BilLIONS OF OOLLARS
(Seasonally a djust od annual raU S)
+4.0
BALANC'; ON OFFICIAL RESERVE
TRANSACTIONS BASIS
+2.0
o I,....-=-... ,._---.
international developments
The U.S. balance of payments, measured on
either the liquidity basis or the official reserve
transactions basis, improved considerably in the
first quarter. The more favorable behavior of the
balance of payments was the resriIt of a sharp
12
1966
p . Pr c lilnin a ry .
SOURC E: U,S. Dop artm ollt of Conlln c rc o.
1967
U.S. MERCHANDISE EXPORTS AND IMPORTS
BILLION S OF OOLlARS
(Seas on all y a dJus t od annu al r at es )
3n ~==~~~=;========~~==~~
34
$28.6 billion in the last quarter of 1967 to an
annual rate of $31.4 billion in the first quarter
of 1968, or about 10 percent. As a result, the
trade surplus narrowed sharply; in fact, a deficit
on merchandise trade (the first one in 5 years)
was reported for March, mainly as a result of
the New York Port strike.
Capital outflows improved markedly in the
first quarter. For example, direct investments
abroad by U.S. firms fell from a seasonally adjusted annual rate of $3.3 billion in the fourth
quarter of 1967 to $1.9 billion in the first
quarter of 1968. In the same period, short-term
capital outflows declined from a seasonally adjusted annual rate of $1.7 billion to $332
million.
30
28
26
24
1966
1967
1968
SOURCE . U.S. DCIHHtln Ont o f Comm er ce .
reft.ecting a gain of about 6 percent. In the
sallle period, however, merchandise imports
rose from a seasonally adjusted annual rate of
During the first quarter of 1968, U.S. official
reserve assets declined almost $1 billion. The
reduction was centered in gold holdings, which
fell nearly $1.4 billion, primarily reflecting the
gold crisis in March. However, holdings of convertible currencies rose $401 million, and the
U.S. gold tranche position in the International
Monetary Fund advanced $57 million.
business review/august 1968
13
district highlights
Nonagricultural wage and salary employment
in June in the five southwestern states increased
almost 1 percent over the preceding month,
reaching a total of 5,949,200. The advance in
manufacturing employment was nearly 2 percent, while the number of persons engaged in
nonmanufacturing industries posted a gain of
less than 1 percent. Employment changes in
most nonrnanufacturing categories followed the
usual pattern for this time of the year with
two exceptions. Although rising more than 2
percent, construction employment failed to attain the increase normally expected; government employment, on the other hand, registered
better-than-seasonal strength.
Up 5.0 percent from June 1967, manufacturing employment in the five states showed a
larger year-to-year gain than that of 3.5 percent for total wage and salary workers. In
the nonmanufacturing category, the advances
in service and government employment were
ahead of the rise of 3.1 percent for total nonmanufacturing employment. The work force in
mining was only fractionally larger than in June
1967, and employment in the remaining nonmanufacturing categories posted year-to-year
increases within a range of 1 percent to nearly
3 percent.
After rising in May, the seasonally adjusted
Texas industrial production index in June eased
abou t 1 percent to a level of 167.7 percent of
its 1957-59 base. All major sectors shared in
the decline. Among durable goods manufacturers, only two industries displayed monthto-month output advances - fabricated metal
products and stone, clay, and glass products.
Production of other durable goods industries
either remained virtually unchanged or exhibited decreases ranging up to about 4 percent.
14
Output in the transportation equipment and
electrical machinery industries was not as strong
as usual and dipped below the May levels. Tbe
important chemical and allied products industrY,
with output 2 percent under the prior mo~th,
was the prime contributor to the slight easing
in the nondurable goods sector. Almost all the
othe~ nondurable goods industries showe~ on1~
fracttonal production changes. A decltne 0
nearly 3 percent in crude petroleum mining depressed the mining sector by 2 percent.
Industt·ial production in the State in JU~
was almost 10 percent above the same mon.
in 1967. The year-to-year output advance ~
total manufacturing led the rise in the overa
index. Strength in durable goods productiOll
was predominately centered in electrical llla..
·
c h mery, transportatton eqUIpment, an d "ower
durable goods" (mainly ordnance). Petroleum
rorefining and leather goods posted stronger p.
duction gains than the other nondurables In~
dustries. The only manufacturing industries no
sharing in the year-to-year output increase~
were textile mill products and apparel all f
allied products. With the impetus of a riS~ 0
nearly 9 percent in crude petroleum miniJl~
total mining output exceeded that in June 19 f
by more than 6 percent. Largely as a result 0
rathe strength shown by electrical power gene h
tion, output of utilities was 5 percent over t e
corresponding month last year.
Both bank credit and total deposits showed
eCless strength at the weekly reporting comlll t
cial banks in the Eleventh District in the ~Sd
half of 1968 than in the comparable p~~~Y
last year, as these items were progreSSl al
influenced by monetary restraint. While tot s
bank credit expanded about 80 percent ad
· ste
much as in the first half of 1967, loans adJU
eXpanded quite rapidly, spurred by heavy business loan demand. There was a decline in total
investments, however, in sharp contrast to the
rapid accumulation of securities at the same
t~l11e a year ago. Total deposits fell substanbally, with both demand and time deposits
ShoWing weakness relative to the corresponding
1967 period.
The $185 million increase in loans adjusted
\Vas more than double the gain in the first half
~f 1967 and primarily reflected a $125 million
rise in commercial and industrial loans. These
bUSiness loans rose almost four times as much
as in the first part of 1967, and the advance
\Vas almost double that in the comparable
?eriod in 1966. Real estate loans and consumer
Instalment loans also demonstrated strength, advancing more sharply than in the same period in
19 67. In contrast to the rapid increase in loans,
tOtal investments fell $41 million; all of the decline occuned in holdings of U.S. Government
seCUrities, as holdings of non-Governments ex?anded slightly. In the first half of 1967, total
Investments had advanced $93 million.
On the liability side of the balance sheet, the
redUction of $299 million in total deposits was
~ntirely the result of a sharp decline in total
del11a~d deposits since total time and savings
t epOslts advanced moderately. The decline in
dOtal demand deposits was centered in the
ellland deposits of individuals, partnerships,
and corporations and in interbank demand dei~sit~, both of which fell substantially more
an In the first half of 1967.
tr. bepartment store sales in the Eleventh Dis-
l~ct during the 4 weeks ended July 27 were
\V percent above sales in the comparable
Steeks last year. The strength in department
c Ore Sales in 1968 is reflected in the fact that
cUlllUlative sales through July 27 were 13 perent more than in the same period in 1967.
rn~:e ~egistrations
of new passenger autolies m Dallas, Fort Worth, Houston, and
San Antonio were 2 percent above those for
May and 8 percent higher than a year ago.
Cumulative registrations through the first half
of this year were 17 percent greater than in
the same period in 1967. Fort Worth had the
largest gain in cumulative registrations during
the first 6 months of 1968.
The condition of crops varies considerably
over the Eleventh District. Numerous and heavy
rains have not been favorable for row crop
prospects in the eastern half of the District,
while clear, open weather has benefited crop
development in western sections.
Winter wheat production in the five southwestern states is estimated, as of July 1, at
222.2 million bushels, which is 47 percent
above the 1967 output. Both winter wheat
acreage and estimated production are above
their 1967 totals, and the average yield this
year is indicated to be considerably better than
that in 1967. Nationally, 1968 winter wheat
output is estimated at 1,265 million bushels,
up 3 percent from the June 1 forecast and 4
percent above production last year.
Cotton plantings in the District states this
year are placed by the U.S. Department of
Agriculture at 5.8 million acres, or 14 percent
above the 1967 acreage but 23 percent below
the 1962-66 average. The upturn in cotton
acreage resulted from less required diversion
than last year, a sharp reduction in the payment rate for diversion in excess of the minimum requirement, more favorable prices in
1967, and a better planting season in the southwestern states. In the United States, cotton
plantings this year are estimated at 11.1 million
acres, which is 17 percent above the 100-year
low of 9.4 million acres in 1967.
Production of several other major crops in
the District states is expected to be above
their respective outturns in 1967. According to
July 1 estimates, rice output is up 20 percent ',
over the 1967 level, the corn crop may be
business review/ august 1968
15
5 percent larger, and the production of oats
may increase 132 percent.
Range and livestock conditions are generally good in all areas of the District. The hay
crop has made excellent growth, and production in the District states is estimated to be 3
percent larger than that in 1967. Recent rains
in the western section, however, have caused
some difficulty in harvesting and curing hay.
The number of cattle and calves on feed in
the District states (excluding Louisiana) as of
July 1 is estimated at 1.4 million head, or 18
percent over the number on feed at this time
a year ago. Over the same period, the number
of cattle and calves on feed in the 32 major
feeding states inr;reased 7 percent.
Prices received by Texas farmers and ranchers for the first half of this year averaged 1
percent higher than in the January-June period
in 1967. Prices received for crops were down
1 percent, but prices for livestock were up 3
percent. Cash receipts of farmers in the District
states during the first 5 months of 1968 were
approximately 1 percent larger than in the
same period of 1967. Although receipts from
crops were 6 percent lower, livestock receipts
were 5 percent higher.
Daily average production of crude oil declined slightly more than 1 percent in the
new
pate
bank
16
Eleventh District during June but was 3.3
percent above the year-earlier level. Every
major area within the District except the Gulf
Coast and east Texas showed a monthly decline; northern Louisiana registered an especially sharp drop. The Texas oil allowable for
June had been lowered to 45.2 percent of the
Maximum Efficient Rate of production fro~
45 .7 percent in May, but the allowables In
southeastern New Mexico and in Louisiall a
were unchanged. For July, the Texas allowable
was raised to 46.4 percent; however, it baS
been cut back to 44.8 percent for August. III
southeastern New Mexico, the July rate remained at 58 percent, the level that has prevailed since April. The allowable in Louisiana,
which was raised in July, will remain the same
for August.
Louisiana is currently experimenting wit~ ;
plan whereby up to 5 percent of productiO
over the monthly allowable is permitted, prof
vided production is evened out at the end 0
specified 3-month periods. The method was
temporarily introduced in May for the purpos.~
of filling Capline, which is the new crude ~I
pipeline from Louisiana to the upper !vfidd3e
West. It was recently announced that the f
month plan will be extended to the first °t
lT11S
November, thereby encompassing the Au/:>- October period. Thus far, industry reaction to
the plan is reported to be favorable.
The Valley Bank, El Paso, Texas, an insured nonmember bank located in
the ter:ritory served by the El Paso Branch of the Federal Reserve Bank of
Dallas, was added to the Par List on its opening date, July 23, 1968. ~he
officers are: V. H. Lonnquist, President; Charles L. Haines, Cashier; and Keith
M. Ward, Assistant Cashier.
STATISTICAL SUPPLEMENJ
to the
BUSINESS REVIEW
August 1968
FEDERAL RESERVE BANK
OF DALLAS
CONDITION STATISTICS OF WEEKLY REPORTING
COMMERCIAL BANKS
RESERVE POSITIONS OF MEMBER BANKS
Eleventh Federal Reserve District
(Averoges of daily figures. In thou sand , of dol lars)
Eleventh Federal Reserve District
~
(In thousands of dolla rs)
Item
July 31,
1968
Jun e 26,
1968
Aug. 2,
1967
ASSETS
Net loan s and discounts . ... . . ... , .... .. .... .. .
Valuation roserves . ... ....... ..... . ......... .
Gross loans and discounts .. ......... .. ...... ..
5,732,704
107,273
5,839,977
5,618,544
107,285
5,725,829
5,173,741
95, 972
5,269,713
Commercial and indu strial loan s. . .. •.• ... •. ..
2,758,540
2,787,400
2,529,101
96,275
100,740
103,607
11,676
19,692
15,339
19,752
10,757
51,888
364
329,542
335
337,669
868
319,420
Agricultural loans, excl uding CCC
certiAcat es of interest . ..•.. ..... .. ... ....
purcha sing or corrying:
Other loan s for purchasing or corrying:
U.S . Government securities . ............ .. .
Other securities . . .. . . ............ ..... ..
Loan s to nonbank Anancial institutions:
Solos AMance, personal finance, factors,
and other business credit compani es •. . .• ..
Item
5 weeks ended
June 5, 1968
698,803
649,150
49,653
695,565
3,238
5,911
-2,673
697,630
648,700
48,930
691,899
5,731
36,863
-31,132
696,321
527,950
168,371
664,174
32,147
14,429
17,718
691,955
526,580
165,375
662,873
29,082
13,742
15,340
1,395,124
1,177,100
218,024
1,359,739
35,385
20,340
15,045
1,389,585
1,175,280
2 14,305
1,354,772
34,8 13
50,605
-15,792
Total re se r .... es held . ......••.•.
With Federal Res er .... e Bank .. ..
Currency and coin . .. . .......
Required reserves . ........ .. ..
Excess reserves • ••..... .....••
Borrowings . ••.• ••... ....• . ...
Freo reserves • ................
153,485
314,570
557,411
216,331
5,614
583,756
170,754
284,902
490,185
171,049
4,115
530,265
Other loan., ....... . .... • .. ............ ..
0
608,195
0
633,427
2,489,653
2,469,626
1,099,830
38,936
0
---1,106,509
18,106
0
With Federal Reserve Bank....
Currency and coin •. •...... "
Re quired reserves .. ...........
Excess reser .... es • .•• . .•...•.•.•
Borrowings • •... . . ........ . •. .
Free re ser ....es •. ...............
244,354
592,397
251,652
155,463
622,966
255,138
33,895
1,147,015
28,146
1,123,596
30,634
1,054,583
139,653
69,260
141,BBB
69,487
142,637
84,863
945,635
668,676
79,136
441,399
4,663
363,503
933,707
708,340
82,797
438,244
5,246
352,436
10,608,940
595, 1 ~~
37,0
3828
33:209
Total reserves held . ..... .. ....
Currency and coin . .........•
Required reserves • ...... ... •..
Excess reserves . . . ........ . ...
Borrowings • • .. . ..••.•• • .....•
Free reser .... es . ...•.•••........
9,970,981
1 274,42 3
1:07I,~~~
202, 646
1,233, 77
40,7 8
3,B2
36,9 49
858,016
663,645
71, 133
457,078
5,582
319,174
TOTAL ASSETS .......... , , ............. 10,725,369
632,219
475,775
156,444
ALL MEM8ER BANKS
1,109,895
62,456
13,872
239,129
566,450
255,315
3,74~
3,740
2,422,6 12
Total U .S. Government securities ... •. ...•.....
642,20 4
595,825
46,37 9
638,46 4
0
602,802
Total investments . ...• . ..•.....•... • . ........
July5~
COUNTRY BANKS
With Federal Reserve Bank.. , ,
154,224
348,425
565,070
348,272
4,890
594,812
4 weeks ended
RESERVE CITY 8ANKS
Total reser .... es held . ...........
loans to brokers and dealers for
U.S. Government securities . . . ...... .......
Other securities . ..... .. ... . ....... ... . ..
4 weeks ended
July 3, 1968
Other .....•.••. •••··•••·••• ·• ••·•• · · · •
Real estate loans• • .. .....•...... ... . . .....
loans to domestic commercial bonks.. . . .. .....
loans to foreign banks . ....................
Consumer instalment loons .. . .....•.....•.. ••
loans to foreign governments, official
institutions, central banks, internationa I
{nstltutlons .• • . .•... ....• ....•...•.. . ....
Trea.ury bill ................... , , .......
Treasury certiAcates of indebtedness • ..•••.•
Treasury notes and U.S. Government
bonds maturing:
Within 1 year •. •.. . . •. ... .. ........ ..
1 year to 5 years ••••.•••.....•••. , •••
After 5 years .........................
Obligations of states and political subdivisions:
Tax warrants and short· term notes and bills . •
All other .......... , ........... , .. .. . , ••
Other bonds, corporate stocks, and securities:
Participation certiflcate s in Federal
agency loans .. ... .. ..........•.. . ..•.
All other (Including corporate stocks) .•.••.•.
Cosh items in process of collection . •. . •••. . ... •.
Reserves with Federal Reserve Bank ..•.• .•..•••.
Currency and coin . .•....••. . ...• . ... • •..... •
Balances with banks in the United States •• •• • •• , ,
Balances with banks in foreig n countries .. • •. . . •.
Other assets •• , •.•..••..•••••.••...•••... , ••
----
-----
CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS
(In thou sonds of dollors)
===============================~
July 31,
June 26,
AuQ 1'
6
Item
1968
1968
~
- - I- I- - - - - - - - - - - - - - - - - : . . : . . : . . - - 4161 81
T
d
oto go certificote reserves......... .. .. ..
312,982
354,502
l,7608
Discounts for member banks. • • • • . • • • . . . • • • •
5,541
14,533
Other discounts and advances. • • . • . . • . • • . . .
684
741
i
2,173,250
U.S. Govornment securities , , , , • .. • ••... •• , ,2,169,943
Totol earning onets .... .. ...... ,.......... 2,176,168
2,188,524
63'
l,,~~t:~02312
Membor bank reserve deposits... . .... ... ...
1, 104,100
1, 137,263
1,0
{4SS
F_e d a I _ o,_o_v ___t_e_s____t_u_o__ci_rc_u_Io_t_ n_ _,._ ___ 4_7_2,_ 4_ ____1__5_2 ,_ ___~_1,3
_ _e_r__ R_ r _o no
in a c
l
io_ , ,_, I,_
0_ 6
,4 ~ 27_8
1 I
CONDITION STATISTICS OF ALL MEMBER BANKS
Eleventh Federal Reserve District
LIA81LITIES
Total deposits • ••• " •...••..•.•..•.• · , ····· ·
9,174,043
Total demand deposits ............... .. ....
5,451,384
3,753,472
318,824
136,853
1,127,427
Indi .... iduals, partnerships, and corporations . .••
States and political subd i.... isions . . .. ...•....
U.S. Go .... ernment . ....... . ...............
Banks in the Unite d States ...... . ....... , ••
Foreign:
Gove rnments, official institutions, central
bank s, international institutions . . ...... .
Commercial banks . . •..................
Certified and ofAcers' checks, etc . . .•.... •..
Total time and sa .... ings deposits . .... .• •. . ....
Indi .... iduals, partne rship s, and corporations:
Sa .... ings deposits . . ...•................
Other time deposits ... .... • . •.... .... ••
States and political subdi .... isions • . .•...... ..
U.S. Go .... ernment (including postal sa .... ings) . .•
Banks in the United States ..... ..... ... ....
Foreign:
Governments, ofAcial institutions, central
banks, international institutions . •.. •.• ..
Commercial banks, ..•• , • , , •• .••... , , ••
Bills payable, re discounts, and other
liabilities for borrowed money •.. ... . ••. ... ,.
6,034
23,710
85,064
3,722,659
1,042,341
2,008,698
634,024
10,186
21,910
8,878,300
8,530,906
3,709,059
260,0 15
141,459
1,088,233
5,154,39 1
3,488,869
284,833
111 ,504
1,167,540
3,325
20,818
100,446
3,554,945
3,53 1
19,8 15
78,299
3,376,5 15
---5,323,355
1,092,779
1,813,414
610,282
9,174
23,796
1,114,362
1,670,461
554,785
12,929
22,478
=========================(=In==m=i=lI=io=n=s==o=f=d=o=lI=a=rs=)=============~:::
June 28,
J_ _
M~a~y=2~9_,__ I,,9_6.7~
_ ________________________________ Un~o~2:6 ,_____
~m
~
1m
1m
Balances with banks in foreign cauntriese ...
Cosh items in process of collection . ..... • • .
Other a ssets o . .. .... ••.. ...• ••. ...... • .
9,873
2,382
2,786
1,137
245
1,102
7
1,048
462
9,642
2,456
2,745
1,114
239
1,042
6
1,0 12
476
TOTAL ASSETse ................... ..
19,042
18,732
1,357
8, 154
6,972
8,059
6,974
..!:-.
16,483
647
325
1,587
16,339
450
357
1,586
29 9
I 50 4
.....:.-
ASSETS
loans and discounts ••• . . .•• . . ... .••... . .
U.S. Government obligation s•••. .•. ••.. . .•
Other securities . • .. ... ••• ...••.. . ... ..•
Re se rvos with Federal Reserve Bank ••. . ....
Ca sh in .... ault .. . . .......... • ..•.... . ...
Balances with banks in the Unite d States . , ••
LIABILIT IES AND CAPITAL ACCO UNTS
Demand de posits of banks . .... .•••. .... .
Other demand deposits ....... , .• •• , ••...
Time deposits•• .•....•..•••. .. ••.. . ....
5,300
200
5,300
200
BOO
700
Other liabilitie., • , •• , , •. , . , • . •. , .• ••.. • • ••..
430,040
202,694
598,127
219,284
399,858
158,520
CAPITAL ACCOUNTS" .............. .. .. ·· ..
918,592
---10,608,940
913,229
88 1,697
TOTAL LIABILITIES AND CAPITAL ACCOUNTS 10,725,369
Total deposits •• " ••• . . •• , " " , ••. , ••
~o~ow~ngs::.' .
TOTAL LIABILITIES AND CAPITAL
-
9,970,981
E,tlmated.
2'~9J
229
1,06~
963
SOl
~
gJb\
I 314
'60 8
7'35 4
15,~~~
75 11
~_8_7_32__
~
______ C_ _ N_ S . , . • _
AC_ O U_ T _e_.__._.__._. .,_._'_
"_._' _ _._. _ ___ 9_, ______
•• .
1_ 0_42
e -
2
e.... ... .. ........ ..... .
t ar liabilities ..........•..••..• . • . ..
Total capital accounts 0 • • • • • • • • • • • •••• •••
1,306
909 6
'237
2, 21
BANK DEBITS, END-Of-MONTH DEPOSITS, AND DEPOSIT TURNOVER
(Dollar amounts in thousands, seasonally adlusted)
~
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~==
DEBITS TO DEMAND DEPOSIT ACCOUNTS'
DEMAND DEPOSITS'
Percent chango
---
Standard metropolitan
statistical area
~IZONAI Tucson • •...••••••...• • • .•..•• ••..•••• • • . •
UISIANA: Monroe ................................
~EW M
Shreveport; .............................
IE
EXICO: Rosw ell •..•...••...•••••..•.••• • . .••
XAS: Abilene ••••.•....•••..••••••..••••••••••••••
Amarillo ••• •... ••. ...• ••.. ••••. ••• ...•..••..
Austin ..• . ...••....••••.•• ••••• ...• •.••• ••..
8eaumont~Port Arthur-Orange ••••............ ..
Brownsville-Harling en-S an Benito .•.. . .•• ••.•.. ••
Corpus Chris ti ............ .... .... ..... ...... .
Cors/cana :a . .. ....... ... ... . .... . ...... ......
Dallas ..•......•..••..... .1 • • • • • • • • • • • • • • • • • •
EI Paso •••.....•••.•••••.. ••••••..•• ••.•••..
Fort Worth ..................................
Galv.ston.T. xas City . . .... ......... ..........
~b~~~:':::::::::::::::::::::::: ::::::::::: :
McAII.n.Pharr.Edlnburg .... ... ... .. . . .. .... ....
g~~~;o~~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
::
:::::
: : :: : : : : : : : : : : :
Sherman"Denlson •••.•••. . ••.... •• •• • •••••••••
T.xarkana (Toxas·Arkansas)....................
~~~~::: :::: ::::::::::::::: :: ::::::::::::::
Wichita Falls •••... • •••••••••....••••••.•..••
10 101_28
- - . . .c.nt.rs •••..••..••.•..•••••.•••••.••••..••
Annual rate
of turnover
June 196B from
June
196B
(Annual·rate
basis)
May
1968
1967
6 months,
1968 from
1967
June 30,
1968
1968
May
1968
1967
$ 181,291
82,105
244,104
34,054
91,845
142,321
234,836
228,186
69,043
191,928
26,959
1,984,507
195,415
573,628
100,523
2,353,366
35,164
153,144
83,174
129,903
67,398
65,806
583,243
55,764
63,375
87,046
114,814
106,837
24.7
29.1
26.5
20.2
19.8
35.9
28.2
25.0
21.2
22.7
14.4
45.7
27.6
30.5
23.7
33.9
19.4
23.6
16.9
14.2
20.0
16.6
25.0
15.9
21.7
20.5
21.7
19.0
23.7
26.5
27.2
20.4
19.0
35.5
23.5
25.9
21.0
23.5
14.7
44.4
26.5
32.2
24.2
35.1
20.9
24.6
17.3
12.0
19.4
15.6
23.3
16.6
22.2
21.8
22.1
17.4
25.5
27.1
27.0
16.9
18.2
31.3
22.3
25.6
22.0
20.0
12.7
40.0
27.2
29.2
24.0
34.4
20.6
25.0
17.1
13.1
19.8
16.2
22.5
15.6
22.2
19.2
21.0
17.2
$8,279,779
32.3
32.1
30.4
Juno
4,513,704
2,344,620
6,207,072
685,140
1,850,388
5,002,188
6,707,916
5,632,728
1,504,968
4,407,000
392,400
88,551,480
5,481,300
17,025,612
2,390,916
77,566,632
681,828
3,608,748
1,442,160
1,887,888
1,333,332
1,085,136
14,642,712
873,972
1,385,664
1,760,700
2,526,708
2,085,324
5
10
1
4
3
4
15
-1
-3
-3
-5
5
3
-3
-3
1
-6
-2
-3
20
4
9
8
- 3
-1
-4
-3
6
9
17
5
12
6
16
43
1
11
13
7
25
4
16
7
11
4
1
9
19
7
20
25
9
7
10
9
13
4
8
6
6
-4
12
23
3
13
13
11
19
4
18
13
15
11
2
7
6
4
10
17
10
11
10
13
5
$263,578,236
0
16
15
$
Juno
----
June
'0
~ C. poslts 01 ind ividuals, partnerships, and corporat ion s and of states and political subdivisions.
Ounty basis.
GROSS DEMAND AND TIME DEPOSITS Of MEMBER BANKS
Eleventh Federa l Reserve District
(Averages 01 dally flgures . In millions 01 dollars)
GROSS DEMAND DEPOSITS
BU)LDING PERMITS
~
Dot.
Total
city banks
1966. Juno •• .•••
1967: Jun •••••••
1968: January • • •
8,742
8,968
9,923
9,561
9,510
9,655
9,460
9,548
4,080
4,197
4,560
4,391
4,388
4,486
4,382
4,453
4,662
4,771
5,363
5,170
5, 122
5,169
5,078
5,095
VALUATION (Dollar amounts in thousands)
Porcont chang.
Jun. 1968
from
NUM8ER
May
1968
1967
June
february ...
6 months,
1968 from
1967
1968
6 mos.
1968
2,860
$ 3,605
$ 17,543
13
33
422
2,192
777
2,864
11,371
12,214
-69
112
-69
-41
261
692
2,343
826
666
2,421
10,458
2,803
3,134
482
13,301
209
688
453
406
455
392
7,075
248
1,484
425
692
1,079
13,720
1,600
228
2,529
21,594
5,052
8,871
3,077
26,462
259
2,583
1,294
187
254
738
7,496
217
2,232
780
4,974
10,564
64,000
9,296
2,392
20,833
127,993
35,883
43,034
7,792
201,313
1,396
12,320
5,671
2,785
1,728
6,094
74,334
3,803
9,516
6,567
-67
-45
33
-3
-3
-17
-18
28
31
85
-4
-30
20
24
-68
13
33
-52
-80
94
-68
159
-35
83
20
37
-53
-14
-12
118
369
-32
- 18
27
22
-66
31
-79
-21
-51
136
-72
-32
-12
-7
22
115
21
26
15
25
67
12
-33
-24
-6
-17
-21
-2
33
76
39
-30
54,696
$108,190
$693,416
-8
-11
13
city banks
Country
banks
5,704
6,282
6,698
6,863
6,935
6,973
6,950
6,964
2,667
2,707
2,815
2,851
2,863
2,869
2,840
2,847
3,037
3,575
3,883
4,012
4,072
4,104
4,110
4,117
Re serve
-11
-14
49
105
388
111
~rQWIlS'f'iII~'" •
100
O~Ir.·s Chri;ti.: 373
EI p. s....... . I,BOO
Fo,t
453
GOl v• th •••.
528
85
2,585
43
l·?bo~k ·" " .
M'dl ond ' " ...
110
Ode" .... ..
103
50
PO,t A~ti,"""
SanA ur ....
7B
So. A~~.lo •••
56
~Xorko~~o •.. 1,158
aco
... .
38
263
IViohit"
1
a ails • •
76
alai
9,542
March •••••
April ......
May ......
Jun •••.•••
Total
40
68
411
TIME DEPOSITS
Country
banks
Reserve
~
1968
6 mos.
1968
511
June
June
ARIZONA
luc:so n
lO~ISIAN~""
•
onroe"Wost
Sh rev
Monroe •••••
leXAS ·Porl •.••
Abll en •
A... rlll .... ·• •
A.sl' 0 . . . . . .
Bea~~~~t' ••••
\Y .......
r
~Or~~;n~~'::: :
F
·····
~.
VALUE Of CONSTRUCTION CONTRACTS
(In millions 01 dollars)
January-June
Aro a and typo
June
1968
May
1968
April
1968
1968
1967r
FIVE SOUTHWESTERN
STATES' ••• •. •••••••• •..
R.sid.ntlal building ••••• ••
Nonr.sld.ntlal building •• ••
Nonbulldlng construction •••
UNITED STATES ............
R.sldentla l building •.••• ..
Nonr.sld.ntlal building ••. •
Nonbulldlng construction •• •
563
233
185
146
5,589
2,243
2,030
1,316
545
259
199
87
6,170
2,543
2,227
1,400
500
228
127
145
4,878
2,312
1,522
1,044
3,006
1,357
924
725
29,194
12,121
10,129
6,944
2,971
1,140
1,050
782
26,087
9,946
9,936
6,205
1
Arizona, Louisiana, New Mexico, Oklahoma, and Texas.
r - Revised.
NOTE. - Details may not add to totals because 01 rounding.
SOURCE: F. W. Dodge, McGraw·Hill, Inc.
3
CROP PRODUCTION
CROP ACREAGE
(In thousand. 01 bushel.)
(In thousands of acr.s)
TEXAS
Harvested
1968,
1968,
Average
estimated
1962-66
Ju ly 1
Crop
estimated
July 1
Crop
Winter wheat •..•
Corn ••..••.•...
Oot •••.••.. .•..
Borl.y .........
Ric. ' .. . .... ....
Hay· .. . .. . ... ..
Flaxseod .......
Irish potatoes" •••
Swect pototoc,,·, .
1967
85,806
19,572
20,876
3,584
29,890
4,058
744
4,382
840
53,216
18,658
6,615
1,350
25,908
3,774
150
4,329
810
60,621
23,729
17,217
3,497
19,394
3,093
741
3,082
842
222,182
28,878
26,754
26,158
57,688
9,815
744
7,816
5,433
150,903
27,515
11,533
18,007
47,943
9,568
150
7,892
5,008
Cotton • • •••••••••••••
Winter wheat ..•.......
Corn .. ..... ..... . . . ..
Oat ••••••••••••••••..
8arl.y ...............
Ry ...................
Ric ..................
Sorghums .............
Hay . ................
Peanuts ...•...........
Flax ••• d .............
Irish potatoes ... • ..• •..
Sweet potatoes •..•....
Arizona, Louisiana, Now Mexico, Oklahoma, and Texos.
In thousonds of bags containing 100 pounds each.
a In thousands of tons.
" In thousands of hundredweight.
SOURCE , U.S. Deportmont of Agriculture.
1
:!
Average
1962-66
For
harvest
1968
3,960
3,326
491
315
75
25
508
7,590
2,297
295
25
30
11
4,505
3,991
466
614
128
25
610
7,135
2,338
298
62
27
12
1962-66
162,145
33,434
23,946
22,249
37,094
8,128
741
6,069
4,807
1967
For
harvest
1968
Average
1967
~
STATES'
FIVE SOUTHWESTE~
TEXAS
FIVE SOUTHWESTERN STATES'
5,897
3,027
753
690
175
29
470
6,077
2,191
288
88
21
13
5,827
9,788
689
780
587
70
1,288
B,784
4,769
431
62
44
66
~
Av orOg
6
1967~
5,11 3
8,834
712
465
418
68
1,073
9,333
4,791
428
25
47
7,5 37
7 4B5
1'062
'936
716
93
992
75A A
4'677
'A17
BB
37
66
~
Arizona, louisiana, New Mexico, Oklahoma, and Texas.
SOURCE. U.S. D.partment of Agriculture.
1
DAILY AVERAGE PRODUCTION OF CRUDE OIL
(In thou.ands of barr.i. )
Percent change from
June
Area
1967
May
1968
1967
3,660.7
3,175.0
624.0
1,496.0
148.0
94.0
813.0
321.7
164.0
5,572.5
9,233.2
3,500.6
3,022.0
566.8
1,391.9
129.9
96.7
836.7
309.9
168.7
5,032.0
8,532.6
-1.2
-.8
1.4
-1.7
4.4
-2.6
-1.4
-.1
-12.3
-.3
-.6
3.3
4.3
11.6
5.6
18.9
-5.3
-4.2
3.7
-14.7
10.5
7.5
1968p
ELEVENTH DiSTRiCT •••••.•• 3,616.0
Texas .................. 3,150.6
Gulf Coast ............
632.6
West Texas ........... 1,470.3
Ea.' Texa. (prop.r) .....
154.5
Panhandle ............
91.6
R•• t of Stat...........
801.6
Southea stern New Mexico . .
321.5
Northern louisiana ...... ..
143.9
OUTSIDE ELEVENTH DISTRICT 5,559.0
UNITED STATES ............ 9,175.0
June
June
Total...... .... ...... .....
Unit.d States •••••••••••• , •
5,949,200
1,114,400
4,834,800
236,100
389,100
444,100
1,350,500
288,200
915,900
1,210,900
Percent change
Jun. 1968 from
May
1968
June
1967r
5,898,700
1,093,200
4,805,500
231,400
379,700
May
1968
June
1967
438,600
1,338,400
285,200
905,000
1,227,200
5,749,700
1,060,900
4,688,800
235,500
384,500
0.9
1.9
.6
2.0
2.5
3.5
5.0
3.1
.3
1.2
438,000
1,314,400
280,700
870,500
1,165,200
1.3
.9
1.4
2.7
2.7
5.2
3.9
Arizona: louisi ana, New Mexico, Oklahoma, and Texas.
Prollminary.
Revised .
SOURCE, State omployment agenci.s.
1
p -
r-
4
$ 1,558,002
$15,207,289
$
10
0
7
190,075
152,414
75,786
284,161
835,602
2
$ 1,538,038
$14,808,825
INDUSTRIAL PRODUCTION
Total nonagricultural
Manufacturing •.•••••••••
Nonmanufacturing ........
Mining • ••.•.•..••...•
Construction ...........
Transportation and
public uliliti ••••••••••
Trod .................
Finance .. .............
Service . . ....... .... ..
Government .....•.....
205,285
152,693
83,116
265,648
851,260
(Seasonally adju sted ind.xes, 1957.59
Number of person s
wage and salary workers ••
$
SOURCE, U.S. Departme nt of Agriculture.
Five Soulhwestern Slates'
1968p
8
Arizona .......... . ........ •
Louisiana .•.. .. .... . .... ....
New Mexico .•. •..•. .........
Oklahoma . . . .............. .
Texas . .... ..... ........... .
NONAGRICULTURAL EMPLOYMENT
Typ. of .mploym.nt
January-May
Po"o.t
________~~~____~:----__
cha.~
196B
1967
______
Area
p
Preliminary.
SOURCES, American Petroleum In.tltute.
U.S. Bur.au of Mine •.
Fed.ral Re.erv. Bank of Dalla ••
June
CASH RECEIPTS FROM FARM MARKETINGS
====================(=D=o=lI= r =a= u=t=s=i= =h==s=a=n==)=========~=~
a= m=o= n n=t o u d s
May
1968p
1.1
1.2
1.3
Area and typo of ind.x
TEXAS'
Total industrial production......
Manufacturing. • • • • • • • • • • • • • • ..
Durabl.............. .. ......
Nondurabl...... • • • . • • • • • • • • •
Mining. • • • • • • • • • • . . • • • • . • .. • •
Utillti.... • • • • • • • • • • • • . • • • • • • • •
UNITED STATES
Total industrial production......
Manufacturing. • • • • • • • • . . • • • • . •
Durabl...... • • • • • • • • • • • • • • • •
Nondurabl...... • • • • • • . • • . • • •
Mining. • .. .. .. .. .. . .. • . .. .. • •
Utllitl.s... . •• •••• •• • ••••••••• •
== 100)~
June
1968p
May
1968
April
1968
167.7
191.4
207.3
180.8
123.5
219.2
208.5
181.3
126.0
219.2
l*~:~
Juno
1967 r
164.7r
186.3r
198.4
178.9r
124.1r
209.2r
164.0
166.0
170.0
161.0
128.0
196.0
l~tg
170.0
161.0
127.0
0
196.
163.0
164.0
167.0
159.0
129.0r
196.0r
1968 , the
. .
ors as of Ma\8.
1 Reflecting the use of improv.d man-hour product.IVlty facl k through 19
Texas industrial production index has been revised slightly bac
p Preliminary.
r - Revised .
SOURCES, Board 01 Gov.rnors of the Federal Roserve System.
Federal Resorve Bank of Dallas.
