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MONGJrHLG)(
REVIEW
FEDERAL
RES E R V E
Vol. 41, No. 12
BANK
o
F
DALLAS
December I, 1956
DALLAS, TEXAS
INDUSTRIAL GROWTH IN
THE SOUTHWEST
B. WILUAMSON, Industrial Economist
Federal Reserve Bank of Dallas
ROBERT
Industrialization - the growth and development of new
and expanding industries - has been the most outstanding
change in the economy of the Southwest in the postwar period.
It has provided a dynamic new element of growth, stimulating
new and enlarged trade and commerce, significantly altering
the pattern of basic sources of income, and supplying a needed
diversification from the traditional economy built on cotton,
cattle, and oil. The development of new industries has prmrided
the means to absorb large increments of manpower which
have come from the mechanization and consolidation of farms
~ and from the rapid growth in the labor force through an
expanding population.
The impact of industrial growth has spread throughout the
region, although industrialization has been concentrated
largely in a few widely separated areas in close proximity to
principal cities. In providing alternative sources of employ·
ment and encouraging a wider range of commuting distances,
industrial growth has supplied the smaller towns, and even
the rural areas, an opportunity to participate in the expanding
economy of the Southwest. Along with industrialization have
corne problems, particularly those connected with a concen·
trating population, greater reliance upon an individual
employer, and the risks attendant upon cyclical movements
in the economy.
MAJOR INDICATORS OF NATIONAL ECONOMIC ACTIVITY,
1956, 1954, AND 1947
(Dollar amounts In billions)
Percent
Percent
change
change,
1956
Economic InGieolor
Total gron national product ..
Totol indUilrial production
(Clnnual o".roge in dex) ..••
Nonagricultural employment ••
Expenditures for new manu-
•
focturlng plont and
equipment ••.......•..•.
Wholesal. r,rices-all commodities 19"'7·"'9 ... 100).•.
Wholesal. riceS-Industrial
productl 1947-49",,100) ••
1956.
1954
"om
1954
1954
At irregular intervals, the United States Bureau of the
Census makes a comprehensive survey of manufacturing
establishments, which provides the basis for a study of the
industrial position of individual areas and of the Nation.
This article is based primarily upon the reports of the 'Census
of Manufactures for 1947 and 1954 and covers the five District
states of Arizona, Louisiana, New Mexico, Oklahoma, and
Texas. It should be recognized that there are important limita·
tions on the use of these reports. The comparison between the
two census years understates, to some extent, the postwar
trend, because in 1947 the economy was in a period of strong
cyclical expansion while in 1954 an economic' readjustment
was under way. In contrast, the expansion in industrial growth
in dollar terms is overstated, since general price increases
raised the level of the wholesale price index by 14 percent
over the 7 ·year period.
Industrial growth in the Southwest and in the Nation, which
slowed down in 1954, accelerated again in 1955 and 1956.
The year 1955 showed a great advance in the utilization of
existing capacity, while 1956 has witnessed a strong movement
toward expanding existing plants and building new capacity.
There is little question that industrial activity in the Southwest
during the 1954·56 period has been at a record level.
from
19.47
1947
U11.5
$360.7
14.1
$232.2
55.3
143
51,480,000
125
48.431,000
14.4
6.3
100
43,462,000
25.0
11.4
$15.25
$11.04
38.1
$8.70
26.9
114.2
110.3
3.5
96.4
14.4
122.2
114.5
67
95.3
20.1
._Estlmated.
SOURCEI Joint CommiH •• on the Econorn1c Report.
The acceleration in industrial growth in the Southwest
dates primarily from the defense plant construction during
World War II. Although some of these plants were closed
following the war, the influx of industrial workers and the
advantages of the regional area for manufacturing construction began to attract both resource· based and market·oriented
industries.
Changes in Total Manufacturing
Prior to World War II, the Southwest was primarily a
producer of raw materials - such as oil, copper, sulfur, cotton, wool, and other agricultural products - which were
shipped out for processing in other areas. While the Southwest continues to be an important producer of raw materials,
its manufacturing has become increasingly important since
the early 1940's.
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
MONTHLY BUSINESS REVIEW
178
Between 1939 and 1947, manufacturing employment in the
Southwest increased 68 percent. Value added by manufacture
- a measure of net product computed by subtracting costs
of materials and supplies Irom the value of shipmentsshowed a gain of 270 percent. The region's share of the
national total increased from 3.2 percent to 3.9 percent.
The location of war industries in this area resulted primar·
ily from the Nation's need for new war production capacity,
the Government policy of industrial dispersion, and the
presence in the Southwest of many raw materials vital to war
production. Another incentive was locational advantages of
the area - such as access to coastal and ocean shipping, a
mild climate, and available labor supplies. Oil refineries and
industries serving the oil industry were expanded, and new
plants were established to produce textiles and apparel, syn·
thetic rubber, chemicals, ordnance, metal, machinery, aircraft,
and ships.
After World War II, many southwestern industrial plants
which had been producing defense materials converted to
civilian products, accentuating the rapid development of the
peacetime industrial segment of the economy. Value added
by manufacture in the Southwest almost doubled from 1947
to 1954, increasing from $2,878,652,000 to $5,604,'458,000,
and the region's share of the national total rose from 3.9 percent to 4.8 percent. Over the same period, manufacturing
employment increased 35 percent, compared with a gain of
only 10 percent in the Nation.
This growth was aided by a continued increase in the raw
material supplies of the region, an increasing market potential, and the new defense build-up during the Korean conflict.
The value of total mineral production increased 98 percent
between 1947 and 1954 in the major producing states of the
region.
The increasing market potential was bascd on a substantial
population gain and rising levels of personal income. Between
1947 and 1954, total population in the region increased 14
percent, compared with a gain of 12 percent for the Nation_
The important rural-to-urban shift in population underscores
the development of new nonagricultural employment opportunities and the resulting increase in pcrsonal income for these
workers. Total personal income in the Southwest increased
nearly two·thirds over the period 1947·54, and the region's
MANUFACTURING VALUE ADDED AND EMPLOYMENT, 1954 and 1947
Five Southwestern States and United Stotes
{Dollar amounts in thousands)
Percentage
change
Value added
Area
Arb:ono •••••••
Louisiana ••••••
New Mexico ... .
19S4p
191,387 $
1,182,485
127,052
Oklahoma .... .
595,401
Texas ........ .
3,508,133
1947
83,829
694,062
32,136
341,149
1,727,476
Employment
1954p
26,050
146,460
14,984
79,698
414,113
1947
14,188 128
132,463
70
6,696 295
55,441
75
297,054 103
Southwest .... S 5,604,458 $ 2878652
681,305
505,842
United States. 5'16,759,421 $74;342;411 15,683,317 14,294,304
p Preliminary.
SOURCE: United Stotes Bureau of the Census.
Value Employ·
added menl
95
57
84
11
124
44
39
35
10
share of total personal income in the Nation increased from
7.5 percent to 8.0 percent. This gain in personal income
reflected not only a larger population hut also higher levels
of per capita income. Cash receipts from farm marketings in
the Southwest also rose at a faster rate than in the Nation.
It should be noted that defense activities remained an
important stimulant to industrial growth in the Southwest
in the 1947·54 period. Military prime contracts awarded in
the southwestern states between 1950 and 1954 comprised
5.4 percent of the national total, or an amount greater than
the region's relative share of manufacturing capacity as indicatcd by value added. These data do not include small contracts
and subcontracts, which are of grcat importance to the Southwest. During the initial expansion of capacity for the Korean
War effort, from October 1950 to August 1951, the Southwest
received 13 percent of the certificates of necessity issued by
the Government to encourage defense construction. New
facilities begun under this program which added greatly to
the region's industrial potential included oil refineries, chemical plants, primary aluminum plants, steel mills, fabricated
metal products estahlishments, and a large copper smelter.
Other factors which encouraged southwestern industrialization after World War II were (l) high levels of general
business activity in the United States, (2) technical progress
in the development and production of new petrochemical
products, and (3) the self-generation of rapid industrial
growth.
One result of the sharp expansion in manufacturing during
the postwar period was a continued gain in the relative
importance of mal)ufacturing compared with otller sectors of
the southwestern economy. Manufacturing wages and salaries
rose from 17.8 percent of total wages and salaries in 1947 to
18.6 percent in 1954,. Manufacturing ranked below only the
trades and government as a source of wages and salaries.
Available data for total personal income and manufacturing
wages and salaries indicate further improvement of the
relative position of manufacturing in 1955 and 1956.
Manufacturing Characteristics
Manufacturing in the five southwestern states in 1954 was
characterized by a relatively large number of small estahlishments and a high value added per worker. Of the 15,551
manuIacturing establishments in the region, nearly threefourths employed less than 20 employees. Average employment of all establishments was 44 workers, compared with a
national average of 54 workers. This characteristic of manufacturing in the Southwest results mainly from the large
number of small iood'processing, printing, and lumber and
wood products establishments in the area.
The high value added per employee, which was $8,226
compared with $7,445 in the Nation, stems from the region's
possession of a significant share of the Nation's oil refineries .
and chemical plants. Both types of establishments turn out .
products of large value with relatively few employees. Wage
scales in these industries also reflect the high productivity.
However, the average pay per employee in all manufacturing
~
•
MONTHLY BUSINESS REVIEW
179
CHARACTERISTICS OF SELECTED MANUFACTURING INDUSTRY GROUPS, 1954P
Five Southwestern States l
PER EMPLOYEE
PER ESTABLISHMENT
Number of
establish-
Value
Employees
Payroll
added
34
38
75
238
154
311
$ 110,825
$ 246,903
166,737
363,486
1,116,017
679,149
1,636,594
337,740
1,263,783
1,499,026
1,383,162
3,771,317
All other' •.••.•• . ••.••. • •••.
3,642
1,198
847
350
222
202
9,090
All industries. • • •• • • • ••• • . • •
15,551
44
170,562
360,392
Industry group
ments
Food and kindred products •• • ••
Machinery, except electrical • •• •
Chemicals and products • . • .••.•
Transportotion equipment .•• .• •
Primary metal industries ••••• " •
Petroleum and coal products ••••
2
Arizona, louisiana, New Mexico, Oklahoma, and Texas.
Bosed on available data for Texas.
3
Includes small number not reported for industries listed above.
1
establishments in the Southwest, at $3,893 in 1954, was below
the national average of $4,023.
Capital expenditures for manufacturing plants and equip·
ment are also high in the Southwest, partly as a result of the
very large investments required in the petroleum and chemical
industries. The expenditures for all types of manufacturing
in the region during 1954 were $46,646 per establishment
and $1,065 per manufacturing employee, exceeding the
national averages by 72 percent and 114 percent, respectively.
Another reason for these expenditures being r elatively more
important in the region was the faster rate of growth in the
general industrialization of the area.
Value
New capi tal
Payroll
added
expenditures
14,690
19,107
266,989
290,821
2178,065
1,170,871
$3,289
4,410
4,846
4,691
4,420
5,255
$ 7,328
8,932
16,850
6,031
9,001
12,110
$ 436
505
3,560
2302
21,225
3,760
46,646
3,893
8,226
1,065
New copital
expenditures
$
p-Preliminary.
SOURCE: United States Bureau of th e Census.
industry has grown at a slower rate than total manufacturing,
but value added by chemicals production nearly tripled
between 1947 and 1954.
Crude oil produced in the Southwest represents approxi·
mately two· thirds of the national total. WiLh the availability
of pipelines and water transportation to other parts of the
country, it would be possible for this crude oil to be refined
elsewhere. However, approximately 40 percent of the Nation's
crude oil refining capacity is located here, mainly along the
Gulf Coast. Oil refining in this area had its first impetus and
initial expansion during World War I ; the chemical industry
concentration along the coast received its real start during the
Second World War.
Major Industries
A review of the characteristics of southwestern manufacturing in terms of major industry groups shows that in 1954,
food and kindred products continued to account for the largest
number of manufacturing employees, with 122,712 of the
681 ,305 total. This group also provided the largest payroll
of any industry. However, by 1954, chemicals production
had surpassed food processing in the amount of value added,
contributing 19 percent of the total. Petroleum and coal
products manufacturing, which had ranked second in value
added in 1947, fell to third place.
The fastest growing of the maj or industry groups was
transportation equipment, which ranked second in 1954 in
both employment and payroll and fourth in value added.
Over the 1947·54 period, this industry - led by gains in
aircraft manufacture - increased its employment by 164 per·
cent and nearly tripled the value it added in manufacturing.
Other major industries showing exceedingly rapid gains were
primary metals and chemicals. Nonelectrical machinery and
fabricated metal products manufacturing also expanded at
above· average rates .
The manufacture of both chemicals and petroleum products
has flourished in the gulf coast area, largely because of the
plentiful supply of oil, sulfur, and other raw materials in the
immediate vicinity; the existence of trunk pipelines from
other oil.producing areas; cheap water transportation to major
markets of the Nation; the availability of low·cost natural gas
as a raw material and for fuel; the mild climate, suitable for
the open plants typical of the industries; a supply of skilled
VALUE ADDED BY TYPE OF INDUSTRY,I954
FIVE SOUTHWESTERN STATtS
Chemicals and Petroleum Products
PETR'?\&'!!~.fJiO
Together, the related chemicals and petroleum products
industries accounted for nearly one· third of the value added
and nearly two·thirds of the expenditures for new plant and
equipment in manufacturing during 1954. The petroleum
P,.tll'II_~.
SOUACE' u.s. 8u 'lGu 0' the Ctftwa.
COAL
MONTHLY BUSINESS REVIEW
180
MANUFACTURING VALUE ADDED AND EMPLOYMENT, BY INDUSTRY GROUP, 1954 AND 1947
Five Southwestern States I
(Dollar amounls in thousands)
Percentage change
Valued added
Employment
Value
Industry group
1954p
1947
1954p
1947
added
Employment
Chemicals and products .. ........ .. ......... .. .. .
Stone, cloy, ond gloss products .•. .... , . • .. • .......
Fabricated metal products ..•.•. .• . .•.•..•• .... .•.
lumber and wood products ...................... .
Apparel and related products ...•• .•..•.. , •..... ..
Furniture and fixtures • . .•••.••.••....•..• . " .. , ..
Textile mill products ...••....•.. ..........•......
Electrical machinery . •• . .• . •.• ..• •.•.••..... .. ...
All other2 ••••• • .. ••.• . ••. .. . ••.•• . ...•. . •. . •. .
$1,070,424
883,333
761,806
524,659
404,612
307,062
256,179
234,871
230,424
225,245
177,060
135,804
68,704
45,249
38,181
240,845
$ 368,875
579,605
561,553
132,364
172 ,862
102,228
155,471
134,203
102,292
106,650
209,328
92,794
33,434
37,676
12,163
77,154
63,528
122,712
62,909
83,264
45,297
34,113
36,411
25,471
25,749
31,781
47,006
39,667
12,949
10,966
5,229
34,253
38,952
106,164
57,842
31,595
31 ,308
19,281
29,071
19,212
19,583
21,185
66,615
29,139
8,790
10,785
1,946
14,374
190
55
36
296
134
200
65
75
125
111
-15
46
106
20
214
212
63
16
9
164
45
77
25
33
32
50
-29
36
47
2
169
138
All industries •......•.......• ..•...••....•....
$5,604,458
$2,878,652
681,305
505,842
95
35
Food and kindred products ...................... .
Petroleum and coal products .••..•.•..••....•.. • .•
Transportation equipment ....• , .•. ••... . .•....••.
Machinery, except electrical. .................... .
Primary metal industries . ..•....... . •.......... . . .
Printing and publishing ..... .. .. ..... , .......•....
Pulp, paper, and produds .... . . . .. . ... . .... . .. . . .
p-Preliminory.
1 Arizona, louisiana, New MeXiCO, Oklahoma, and Texas.
2
Includes small amounts not published for industries listed above.
labor, provided by the long·established petroleum industry;
and expanding local markets. The existence of oil refineries in
the area is a special attraction to the chemical industrv since
refinery gases are an important raw material for many· chern·
ical products.
SOURCE: United States Bureau of the Census.
for a significant part of this achvlty. Other types of food
produced in the area - such as bakery, beverage, and dairy
products - reflect the small local market characteristics of
the induslry and are types found in most areas of the Nation.
Transportation Equipment
Industrial organic chemicals constitute the largest segment
of the southwestern chemical industry, with the production of
chemicals used in plastics and synthetic rubber showi ng sig.
nificant growth in recent years. Industrial inorganic chemicals,
ineluding sulfuric compounds; vegetable and animal oils;
paints ; and soaps and related products are also of importance.
Some of the major chemicals produced in the Southwest are
ammonia, butadiene, ethylene, polyethylene, styrene, and
synthetic rubber.
Transportation equipment manufacturing received its firsl
major expansion during World War II, when shipbuilding on
the gulf accelerated and military aircraft production was
located in the region. Total employment in the industry
amounted to approximately 5,000 workers in the five soulh·
western statcs before the war. In 194,7, even after the peace·
time adjustment, there were 31,595 workers; and by 1954,
total employment in the industry had increased to 83,264
workers. Aircraft manufacturing has fluctuated widely since
Food and Kindred Products
Food and kindred products manufacturing, with its many
small establishments, ranked a close second to chemicals in
value added in 1954, The food industry is relatively more
important in the Southwest than in the Nation, accounting for
16 percent of total value added compared with 12 percent in
the Nalion, While chemicals and other major industries are
growing rapidly, food processing has expanded very liltle
during the postwar period. The lack of growth in food process·
ing r eflects, in part, the severe drought in the area in recent
years and the severe freezes in the Lower Rio Grande Valley
which greaLly reduced citrus production.
The maj or types of food processing in the Southwest reflect,
in large degree, the character of the region's agricultural
economy, with grain mill products and meat being two of the
most important food products. Vegetable and fruit canning,
IPreserving, and freezing are of more than average importance,
with citrus production in the Rio Grande Valley accounting
PERCENT CHANGE IN VALUE ADDED
BY MAJOR TYPES OF INDUSTRY,1947-1954
FIVE SOUTHWESTERN STATES
TRANSP ORTAT ION
EQUIPMENT
CHEMICALS AND
PRODUCTS
META LS AND PRODUCTS
MACHI NERY
ALL MANUFACTURING
PETROLEUM AND COAL
PRODUCTS
PAP~eR~?.p8R~ND
Pr.li",jnar~ .
SOURCE U,S. 8u"QU Qf th.C.nflll.
~IIlllQmlllllo)nllIIl~
MONTHLY BUSINESS REVIEW
1947, the principal movements being a sharp expansion
induced by the Korean War, a moderate decline in 1953 and
1954, and renewed growth in 1955 and 1956. The other segments of the transportation equipment industry generally
followed a similar pattern, except that substantial growth in
automobile assembly operations was evident throughout the
period.
The aircraft industry of the Southwest is located inland,
with important concentrations in north Texas, Arizona, and
Oklahoma. In Texas, manufactllTers of complete aircraft and
establishments performi ng modifications on complete aircraft
accounted for 70 percent of the total value added by trans·
portation cquipment manufacturing in 1954. A relative newcomer in the industry, the State accounted for over 7 percent
of the value added by the aircraft industry of the Nation.
The fast-growing aircraft industry in the Southwest has
derived considerable stimulus from its central location and
inland production sites - factors which are considered important in the location of military aircraft plants - and from
the mild, clear weather, which provides ideal conditions for
flight testing. Numerous mil itary and other airfields are
located throughout the area, and a sizable number of skilled
production workers are now concentrated within the region.
Characteristically, aircraft establishments are large, and the
seven located in Texas during 1954 employed an average
of 5,878 workers per establishment. Pay in this industry is
high, with the average per employee being $4,961- compared with an average of $4,747 for all transportation equipment workers and $3,949 for all manufacturing employees in
the State.
Other transportation equipment manufacturcrs in the region
include small manufacturers of aircraft components, au tomotive equipment and assembly plants, railroad shops, and
shipbuildcrs. Operations at the region's shipyards declined
sharply after the Korean War; but, recently, activit)' has
increased, particularly in connection with the building of
platforms and barges used in sulfur mining and in drilling
and servicing oil wells in the Tidelands. The shipyards also
havc becn providing "vessels," or containers, for the chemical
industry. Since 1954, several plants manufacturing automotive
trailer equipment have been established in the region.
M etal s and Machinery
The metals and machinery industries represent a major
and steadily growing segment of southwestern industry. This
group accounted for 13 percent of total value added by manufacture in 1939 and 14 percent in 1947. By 1954, its share had
risen to over 17 percent, or nearly the same as the value added
by chemicals production. The metal and metal products
• industries contributed over 9 percent of total value, or about
• the same as transportation equipment manufacture, and
machinery accounted for 8 percent.
Primary metals production in District states - based on
copper, zinc, and other nonfcrrous metals - was concentrated
181
mainly in Arizona and Oklahoma prior to World War II.
Reflecting the rapid growth in the production of aluminum
and steel, total value added by primary metals production
more than tripled between 1947 and 1954. Most of this growth
was in Texas, which accounted for almost two-thirds of the
region's metals production by the end of the period.
Steelmaking in the region is centered in Houston and in
the northeastern part of Texas. Before World War II , Texas
had an annual steelmaking capacity of less than 5,000 tons;
by 1954., this capacity had risen to nearly 1,800,000 tons.
In addition, Oklahoma has a steelmaking capacity of 71,000
tons. Despite this large relative growth for the region, its
share of the Nation's total steel capacity was only 1.5 percent
in 1954. The continued growth trend in the primary steel
industry is indicated by the new expansions being planned by
major establishments in the northeastern and coastal areas
of Texas.
Much of the region's steel production has been tailored
to meet a specific market, particularly the needs of the oil
and gas industry for pipe and tuhular goods. Aiding the
dcvelopmcnt of the industry has been the existence of iron
ore, coking coal, and limestone deposits within the region .
Primary aluminum production in the Southwest was a
postwar development, the first plant being established in
1950. By 1954, there were four primary aluminum plants
and one major alumina plant located in Texas and Louisiana,
with an annual capacity totaling over 400,000 tons of primary
aluminum - or nearly 30 percent of the national total. Including two plants in the adjoining State of Arkansas, this west
south-central area accounted for over 40 percent of the value
added by primary aluminum production in the United States
during 1954. Continued growth is indicated, as all three of
the companies operating in the region have major expansion
programs under way.
The aluminum industry has been attracted to the Southwcst
by severallocational advantages. The process of reducing the
primary metal from alumina requires enormous amounts of
electricity - approximately 10 kilowatt·hours for every pound
of aluminum, and the region possesses cheap electric power.
One plant in Louisiana and two in TexlI;s use local supplies
of natural gas to generate electricity, while another in Texas
uses local lignite supplies. Close proximity to supplies of
bauxite is also important, as approximately 5 tons of this
material is required to produce 1 ton of aluminum. Most of
the bauxite supply is imported from the Caribbean area, and
practically all of the remainder is produced in Arkansas. Con·
version of bauxite to alumina for use in the primary aluminum
plants is performed in Texas, Arkansas, and other southern
states. Lime and sodium carbonate, other materials used by
the aluminum industry, are available within the region . In
addition, a growing regional market for aluminum is provided
by the transportation equipment and construction industries .
Magnesium, another light metal, is produced from sea
water at a gulf coast location. This facility, a wartime development, accounts for most of the magnesium produced within
182
MONTHLY BUSINESS REVIEW
the United States and all of the domestic commercial production. The Nation's only tin smelter was established on the
Texas Gulf Coast in 1942 and has continued to operate, but
at rates well below capacity.
Fabricated metal products account for a smaller value
added by manufacture tban do primary metals and have grown
less rapidly. Nevertheless, r·ecent trends indicate a faster rate
of growth in the future. Most of the fabricated metal plants
are small, with an average of 33 workers per establishment
in 1954 compared with an average of 154 in primary metal
plants. Structural, ornamental, and boiler·shop products for
use in the construction and oil industries have been the most
important products_ Production of heating, plumbing, and airconditioning equipment also has shown significant gains.
Machinery production expanded at an above-average rate
over the 1947-54. period. In the latter year, nonelectrical
machinery, comprising principally oil field machinery and
oil tools, was the fifth ranking industry in the Southwest.
Electrical machinery is the smallest industry in the metals
and machinery group but has had the most rapid growth,
increasing 214 percent from 1947 to 1954. Electronics (automatic control and communications equipment) is a segment
of the industry whieh has begun to show considerable promise
in the Southwest, and sizable concentrations of electronics
and instruments manufacturing have already developed in
several centers.
Other Maior Indu5tries
Another important group within the region consists of pulp
and paper, lumber and wood products, and furniture manufacturers. Located mainly in the pine belt of Louisiana and
east Texas, these manufacturers accounted for nearly 9 pcrcent of total value added by manufacture in 1954. The pulp,
paper, and products industry, which is the largest industry
within this group, has utilized modern equipment and new
pulping techniques adapted to the area's forest rcsources to
increase its value added relative to the industry throughout
the Nation.
Activity in the lumber and wood products and the furniture
and fixtures industries is related to the level of construction,
which expanded rapidly between 1947 and 1954. Value added
by furniture and fixtures manufacturing in the region more
than doubled over the period. On the other hand, value added
by thc lumber and wood products industry declined 15 percent
between 1947 and 1954, compared with a gain of 26 percent
in the Nation; recent data indicate that the decline in the
region has continued. These declines reflect a long-run downward trend in the demand for the region's lumber and wood
products because of thc increasing use of other materials and
western softwoods in residential construction.
The stone, clay, and glass products industry, which
accounted for 4 pcrcent of value added by manufacture in the
Southwest, is closely linked to general construction activity.
Cement plants, the major segment of the industry, and manu-
facturers of structural clay products (bricks, tile, and pipe)
locate near the areas of construction activity because of heavy
shipment costs. The high level of construction in the Southwest during the postwar period was responsible for the 125percent increase in value added by the industry.
Printing and publishing - the seventh ranking industry accounted for nearly 5 percent of total value added in 1954.
This activity, which engages a large number of small establi shments, is found in all but thc smallest towns; however,
the greatest portion of the output is concentrated in thc major
cities of the area, where magazines and daily newspapers
with wide circulation are published. The expansion of advertising in the postwar period, combined with the rapid increase
in circulation, has acceleratcd growth in trus type of activity.
Apparel and related products and textile mill products
accounted for 3 percent of total manufacturing value added
in the Southwest. Although this type of manufacturing has
increased less rapidly than others in the region, it has grown
relative to the Nation's apparel and textile industries.
The Recent Trend
The Southwest has continued to show rapid industrial
growth since the 1954 census. The estimated 8-percent gain
in manufacturing employment between 1954 and 1956 is
equal to the average rate of gain occurring between 1947 and
1954 and compares with an estimated increase of 5.6 percent
for the Nation.
The r egion's more rapid growth in manufacturing activity
during the past 2 years was foreshadowed by its high level
of investment reported for 1954. Whereas the Southwest
accounted for less than 5 percent of total value added by
manufacture in 1954, its $725,390,000 expenditures for new
manufacturing facilities comprised over 9 perccnt of the
Nation's total. The amount of manufa cluring investment in
the region has risen still further, and the value of construction
contracts awarded for manufacturing buildings in Texas
during 1956 is expccted to be nearly three times the 1954
total. Construction awards for factory buildings in the Nation
arc expected to show a substantially lower rate of gain, and
eSlimates of expenditures for new manufacturing plants and
equipment in the Nation reflect an increase of only 38 percent
over the 2·year period.
Thc greatest expansion in the Southwest since 1954 has
occurred in transportation equipment, nonelectrical machinery, and fabricated metal products manufacturing. Available
data for Texas show that over the past 2 years, employment
in each of these industries has increascd around 18 to 20
percent. Other major increases have occurred in chemicals •
and primary metals, with each of these showing employment lIII
gains of around 13 percent. These recent trends reflect a
slight tapering off in the 1947-54 rates of growth for transportatio n equipment, chemicals, and primary metals and
accelerated growth for machinery and fabricated metals.
183
MONTHLY BUSINESS REVIEW
Current and planned additions of production capacity
indicate further growth in manufacturing activity for the
Southwest. The hi gh level of construction awards for factory
buildings is evidence of this ovcr-all expansion. Examples of
major expansions under way or planned include incrcased
production capaci ty for ammonia, butadiene, pcrchlorethylene, polyethylene, rocket fuels, synthetic ruhber, and styrene
in the chcmical industry; for alumina, aluminum, and steel
in the primary metals industry; and for num erous other
products, such as air conditioners, cement, electronic instruments, and oil fi eld equipment.
Although its ratc of expansion has slowcd, the chemical
industry probably continues to account for the largest absolute
amounts of new investment in manufacturing facilities in the
Southwest. A survey by the Manufacturing Chemists' Association reveals that privately financed chemical plants completed
during 1955 in the so uthw es tern states were valued at
$259,075,000, or one-third of the nationwid e total. The survey
shows that additional projects costing an estimated $269,063,000 were under construction in these states in early 1956, and
there were firm plans for proj ects costing $89,425,000 to be
started before the end of 1957. Texas had thc largest indicated
new investmcnt of any state in the Nation for the 1955-57
period and accounted for more than 17 percent of the national
total. Within Texas, organic chemical production was scheduled to receive the largest investment, followcd by plastics
and resins, inorganic chemicals, and synthctic rubber.
•
Summary
The preceding review of industrial growth in the Southwest
has revealed great progress in the economic development of
thc region. Manufacturing and economic activity in general
have expanded at rates exceeding those of the Nation_ The
agricultural and mineral resources of the area, its growing
markets, and other locational advantages have provided the
foundation for the industrialization which was stimulated
by wartime needs and postwar prosperity.
The region has emerged from a predominantly oil, cotton,
and cattle economy, with petroleum refining, chemicals production, and related heavy industry based on the mineral
production in the area leading the way. These industries arc
expected to hold a paramount position for some time, but the
rapid population and income growth within the region points
to increasing emphasis upon production of consumer goods.
The momentum of rapid industrialization can be expected
to bring new manufacturing activities to existing industrial
centers and to other areas as well. If the citizens of the region
can meet the problems created by this transition to an industrial economy - if necessary water supplies, transportation
and power facilities, modern municipal facilities, and other
conditions favorable to industry can be maintained - the
prospects are good for continued growth of this trend toward
industrialization and a beneficent diversification of the
southwestern economy .
184
MONTHLY BUSINESS REVIEW
REVIEW OF BUSINESS, AGRICULTURAL, AND FINANCIAL CONDITIONS
The Middle East CrISIS has
interrupted the normal marketing of oil from that area, creating a deficiency in the supplies
of Western Europe and reducing United States imports. Therefore, demand for
southwestern crude oil has increased, bringing about
higher allowables in Louisiana, New Mexico, and
Texas; a moderate increase in refinery runs; and
firmer prices for crude oil and refined products.
P rimarily because of more trading
days during October this year, retail
sales at Eleve nth District department
stores were up 10 percent from Sep.
tember. However, total sales were
slightly below a yea r earli er. Since the increase over Sep.
tember was less than normal, the index of department store
sales, after adjustment for seasonal variations and the num·
ber of business days, declined to 134 in October fr om 139
in September an d 141 in October 1955. Cumulative sales
fo r the J an uar y·October period reflected a year·to·year in·
crease of 3 percent.
Consumer buying at department stores in the
Eleventh District increased less than seasonally from
September to October and was slightly less than in
October 1955. Homefurnishings sales continued
weak, while the sof.t goods departments as a whole
showed a slight sales increase over a year earlier.
Furniture store sales rose 10 percent over September
but were down 2 percent from October last year.
Sales in the important homefurnishings departments increased from September to October ; compared with a year
ago, sharp declines occurred in some of the departments,
amo unting to 14 percent for housewares, 16 percent fo r
domestic flo or coverings, and 18 percent for major household appliances. Total sales of the homefurnishings departments showed a year-to-year loss of 9 percent.
Seeding of small grains and winter legumes is being speeded in the eastern half of the District. Prospective production of cotton and grain sorghums
improved slightly from early season estimates. No
major improvement has occurred in moisture conditions in range areas, and forage supplies remain
critically low.
Employment of nonagricultural workers in the District states during October totaled 4 , 166,100, a
record high for the third consecutive month . Most of
the 15,700 gain over September resulted from seasonal increases in government, trade, and manufacturing.
In the soft goods departments, sales of small wares led
the percentage gains with an increase of 3 percent over October 1955, while sales of women's and misses' ready-to·wear
accessori es were up 1 percent. Sales of men's and boys' wear
continued to show weakness, being down 2 percent from a
year ago.
The increase in department store sales from September to
October reflected marked gains in all types of sales. Instalment
accounts outstanding decreased slightly in October but were
1 percent larger than a year earlier. Collections on these
accounts in October amounted to 15 percent of the first-ofmonth balances, or 1 point above both a month ago and a
year ago. Charge acco unts outstanding, increasing 6 percent
RETAil TRADE STATISTICS
(Percentage chenge)
STOCKst
NET SALfS
The value of construction contracts awarded in the
District durin g October showed a sharp decline of
30 percent from September and was 16 percent
below the level of a year earlier. A continued decline
in residential awards accounted for most of these
decreases.
Gross loans at weekly reporting member banks in
the District decl ined slightly durin g the 5 weeks
ended Nove mber 21, a lthou g h commercial and
industrial loans rose $19,074 ,000 .. Investments ,
which increased $55,318 ,000, were stron gly influenced by Treasury financing operations . Average
reserve balances of membe r banks declined in October. The annual rate of turnover of deposits, which
was 19.0 in September, rose to 21 .8 in October.
O ct. 19 56 from
line of trade
by Clrea
Oct.
Se pt.
1955
1956
- 1
- 3
10
9
6
16
24
B
1B
-3
9
B
Od. 1956 fro m
10 mo. 1956
com po with
10 mo, 19 55
DEPARTMENT STO RES
Tota l El eventh District • ••• •• ••••• •
Corpus Christi, ••••••. . ••••.•.•••
DoUo s•••• • • • •••••••••••• , • • •••
EI Pa so •• .•• • •• ••• • . • .••..••. ••
Fo rt W o rth •• . •..••• •• .••••.•.••
Houston ••••.••. • ••• , ••••••••••
San Antonio . .....• • • • . •• • ••••••
Snre vepo rt, La .•••• . •• . .•• . .....
W aco ••.••.• .. . . •• .. .•. , . .•. ..
Othe r cities • • .• . . •• •.. • • • ..•...
f URNITURE STORES
To tal Ele venth District • • •••• .. • • ••
Amarillo • • • • •• • .•.• • . •• • • . . • •••
Austin •• • • • •••••••••••• • ..•••••
Dalla s • • •. • . ••• . •• • ••••• • • . .•. .
Houston •• •••••• • • • • .• • •• •. .• ••
l ubbock . ••• • ••••••••••.••••• • •
Son Antonio •.••• • ••• . ••• •• . . .••
Shreve port, La . • •.•. •• •..•• •. • .•
Wichita fa lls •••. . •• .. ...• . .••••
Otner cities . ••• . ••••••.• . ..••••
HO USEHOLD APPLIAN CE STORES
Tota l Eleventh Districf • ••• .••. . • ••
Dallas •••••••••. . • . •... ... . . . . •
I
Stocks at e nd o f month.
- ,3
9
- 2
- 3
-11
0
3
-29
-3
10
- 4
5
5
'5
17
10
6
- 12
8
4
- 6
25
21
-2
-25
- 15
-17
15
-,
-,17
3
6
1
4
6
5
0
,2
6
-3
- 20
11
-,11
5
Oct.
1955
,
-1
-2
4
14
B
- 2
-1
4
11
Se pl.
1956
5
3
5
5
5
3
9
-2
-1
7
5
5
18
-6
,
3
3
5
5
-6
- 3
12
1
2
0
7
_4
5
t
•
t
MONTHLY BUSINESS REVIEW
185
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
!1947-49
= 100)
UNADJUSTED
Area
SALES Oaily average
Elll!l venth District ••••••••••••
Dallas • ••.•••••••• . ••.•. . •
Houston •• • •• • .. •.•. •••• . •
Sept.
142
129
155
155
138
126
152
165
134
121
151
152
148
143
162
130
160
174p
166
158
167r
158p 156
159
151 r
1956 1956
STOCKS-End of month
Seventh DistriGt ••••••••••••
AOJUSTEDI
Oct.
139r
132r
Aug. Oot.
Oct. Sept. Aug, Oct.
1956 1955 1956 1956 1956 1955
149r
139r
139r
12Sr
14lr
1 Adjusted for seosonol variation.
r-Revised.
p-Preliminory,
from September to October, showed somewhat less than the
usual seasonal rise but were up 2 percent from a year earlier.
The charge account collection ralio, at 47 percent, was 5
points above September but the same as in October last year.
CROP REPORTING
DISTRICTS OF TEXAS
-c..
The District's department stores continued to accumulate
inventories in preparation for the Christmas trade, with
stocks rising 5 percent from September to October; compared
with October 1955, Slacks were 4 percent higher. The seasonally adjusted index of department store stocks, at 158 percent
of the 1947-49 average, was 2 points higher than in September and 7 points above October 1955. Orders outstanding,
which had increased moderately from August to September,
decreased 9 percent in October and fell 8 percent under those
of a year earlier.
Total dollar sales of reporting furniture stores in the
District during October rose sharply, as usual, and were
10 percent above those of September but 2 percent lower
than in October 1955. Total accounts receivable showed virtually no change (rom August and September and were up
3 percent from a year earlier. Furniture store inventories increased 3 percent during October and 5 percent over a year
ago.
New car registrations in Dallas, Fort Worth, Houston, and
San Antonio, after declining 22 percent from August to September (the low point of the year), rose 5 percent during
October, with 1957 models accounting for approximately 18
percent of the registrations. October registrations were down
22 percent from a year earlier, compared with a 38-percent
decrease for September. New car sales for the first 10 months
of 1956 were 22 percent under the comparable period of 1955.
Combining of the 1956 grain sorghum crop is complete,
and yields in northwestern irrigated areas are higher tban
earlier expectations. Output of grain sorghums in the District states is placed, as of November 1, 1956, at 112,529,000
bushels, which is 5 percent over the previous month's estimate
but is a third less than the 1955 crop. Corn production prospects also are better than previously indicated; outturn in
the District states is estimated at 50,346,000 bushels, Or 6
percent higher than on October 1 but more than a third below
last year's production. The output of all major feed grains
in the District states is below that in 1955, and severe drought
reduced hay outturn one-fifth. As a result of the short forage
crop, the price of baled hay in Texas increased 36 percent
between October 15, 1955, and mid-October this year.
Harvesting of cotton is active in the western portions of
the District. The crop in the District states is estimated, as of
November 1, to be 2 percent higher than the month-earlier
forecast but 9 percent smaller than the outturn in 1955. Reduced prospects in Arizona, Louisiana, and Oklahoma were
more than offset by improved prospects in New Mexico and,
particularly, in Texas. In the Nation, cotton production is
COTTON PRODUCTION
Texas Crop Reporting Di.strids
(In thousands of bales -
Following excellent rains over the
eastern half of the District during
the last week in October, the weather
has generally remained dry and cooL
Planting of small grains and winter
legumes was active in early November in eastern sections;
seedings made prior to the rains are up to a good stand and
are making good development. Light to heavy frosts on November 9 ended the summer growing season over most of
the northern and northwestern portions of the District. Additional moisture is needed throughout the District, particularly
in western range areas and in the High Plains winter wheat
area of New Mexico and Texas.
500 lb. gross wi.)
1956
Crop reporting district
l·N ••. . . ... .•••.••• . •.•.•••
1-5 ••.•••.• • •.•••.•••••• •• •
2-N •••••.. ••• . • • ••••••••• ••
Indicated
November 1
1956
1955
505
379
512
1,185
1,024
1,097
10-5 ••.. . . _._ .. _...........
170
95
8
355
85
75
295
8
83
135
160
48
393
273
264
23
642
145
94
269
33
163
69
238
40
383
Stole •••••••••••••• ,_ ••••
3,600
",039
2-5 •.....••..• • •..•••.•••••
3 .... .. .• ... •.....•.•. .....
4 •• • •••••.••• • • ••• •• •••••••
S·N ••••.•• • • • ••••••••. • ••••
5-S •• _•••.•••••••••••••••••
6 .•••.•.• . •.. .. _...•....•..
7 •..•.....•.... __ . .•...... _
S·N ••• • .••••••••••••••••• ••
8-5 . . . . ... ..•• •• •••••••. •..
9_ .. •...•••.... • ...•..•.•..
IO-N ••••••••••••••••••••••
1954
SOURCEl United State5 Department of Agriculture.
221
179
21
447
76
75
261
26
142
217
192
67
407
3,940
as percent of
1955
133
116
62
36
35
55
59
80
110
24
51
196
67
120
103
89
MONTHLY BUSINESS REVIEW
186
CROP PRODUCTION
FARM COMMODITY PRICES
Texas and Five Southwestern States
Top Prices Paid in local Southwest Markets
(In thousands of bushels)
Commodity and market
Estimated
Estimated
Nov. I,
1956
Crop
Cofton' •••••••••
Corn ••• •••• ••. •
Winter wheat.•••
Ooh ••••••••• ••
Barley •••••••• •
Rye •••••••••• • •
Rice l , • • ••• • • •••
Sorghum grain • ••
Flaxseed • •• •• ••
Hoy4 •••••• •••••
Peonuts 5 •••
•••••
Irish potatoes' • ••
~:C~·~,~~t.~~~~.::
3,600
28,365
28,275
21,998
2,'80
18'
11,0.48
98,53"
95
1,5.41
88,550
1,286
59'
27,500
Week ended
Unit Nov. 20. 1956
fiVE SOUTHWESTERN STATESl
TEXAS
Average
19.45-54
1955
',039
48,288
1.4,326
23,590
2,072
124
14,880
148,309
96
2,261
239,235
1,760
1,914
38,000
3,518
,.... 209
50,722
27,090
2,0.40
244
11,837
82,103
911
1,660
252,600
11,47.4
11,397
30,565
Nov. I,
1956
5,550
50,346
95,129
39,052
17,023
910
22,623
112,529
147
',921
140,675
3,155
5,049
51,500
Average
1955
19.5-5'
.41,20.4
5,256
78,089
131,765
.40,518
.4.4,837
17,181
691
28,030
175,296
174
6,255
37.4,055
3,787
7,932
99,460
10,589
822
23,476
97,420
1,293
.4,951
366,517
13,382
76,369
65,595
6,078
77,273
1 Arlzono, Louisiana, New Mexico, Oklahoma, and Texas.
:I In thousands of bales.
, In thousands of bags containing 100 pounds each.
, In thousonds af tons.
I In thousands af pounds.
• In thousands of hundredweight.
, Average. 1949-54.
SOURC~ United States Department of Agriculture.
indicated at 13,153,000 bales, or 1 percent lower than a month
ago and 11 percent below output in 1955.
Texas cotton production is placed at 3,600,000 bales, or
140,000 bales above the previous foreca st but 11 percent
below 1955 output. Outturn of irrigated High Plains cotton
is exceeding preharvest expectations as a result of the extended frost-free period and relatively light insect damage
throughout the growing season_ Yields on some dry-land
acreages in the area are also higher than previously anticipated_ The yield per harvested acre in Texas, at 276 pounds,
is 5 pounds below a year ago but is still one of the highest
of record, This yield is an average of extremes, as record-high
output per acre is indicated for all irrigated areas while belowaverage yields are in prospect for most dry-land sections,
except a few coastal and northeastern Texas counties_
The United States Department of Agriculture recently announced a total national acreage allotment of 17,585,463
acres for the 1957 crop of upland cotton, including 100,000
acres in the reserve for allocation to small farms_ The allotment for extra-long staple cotton is 89,357 acres. In the District states, allotments for 1957-crop upland cotton total
9,543,954 acres, or about 2 percent larger than in 1956_
Allotments for extra-long staple cotton are 84,162 acres, which
is almost double the 1956 total.
Moisture is below needs in non irrigated south Texas vegetable areas, and the shortage of irrigation water in the Lower
Valley is diminishing vegetable prospects. The frost during the
COTTON, Middling 15 / 16-inch. Dallas .•••
WHEAT, No.1 hard. Fort Worth •••......
OATS, No.2 white, Fort Worth •••••..•..
CORN, No.2 yellow, Fort Worth .•• • ••••.
SORGHUMS, No.2 yellow, Fort Worth •• ••
HOGS, Choice, Fort Worth .••.••••.•••••
SLAUGHTER STEERS, Choice, Fort Worth .••
SLAUGHTER CALVES, Choice, Fort Worth ••
STOCKER STEERS, Choice. Fort Worth •...•
SLAUGHTER LAMBS, Choice, Fort Worth •• •
BROILERS, south Texas ••••••••.•. • • •.•.•
lb.
bu.
bu.
bu.
cwl.
cwl.
cwl.
cwl.
cwt.
cwt.
lb.
$
.3280
2.60%
1.04Yl
1.71
2.48
15.25
n.50
18.50
18.00
19.00
.19
Comparable Comparable
week,
week,
previous
previous
year
month
.3280
$
$
2.52~
1.0'v..
1.64
2.45
16.50
2-4.50
19.00
19.00
20.00
.19
.3405
2.39v..
.88
1.52
2.12
13.25
21.00
19.00
19.00
17.25
.24
early part of November extended into the Lower Valley, but
little damage to tender vegetables occurred. Peppers, tomatoes, and lettuce are being harvested in parts of south Texas_
Prospective production of commercial vegetables for fall
harvest in Texas is estimated, as of November 1, to be below
a year earlier for all crops except carrots_
Small grain fields in the eastern half of the District are
providing much-needed livestock forage, but grains planted
afler the late-October rains have not developed sufficiently
to provide grazing. Range forage conditions in Oklahoma
and Texas, improving slightly as a result of rains in midOctober and early November, remain critical. In Arizona
and New Mexico, range conditions showed less improvement
between October and ovember than they did in the other
range states of the District. Livestock marketings slackened in
parts of Texas following the precipitation, but poor range
feed conditions in Arizona and New Mexico continue to
exert pressure on ranchers to reduce basic herds.
•
The index of prices received by Texas farmers and ranchers
at mid-October was almost 1 percent below the month-earlier
level, according to the Department of Agriculture_ The index
- at 246 percent of the 1910-14 average - was nearly 3
percent lower than a year earlier. Compared with mid-September, higher prices were received for all grains, cotton
lint, cottonseed, and hay; but these gains were more than
offset by a decline in the meat animal index, which reAected
a sharp decrease in prices received for beef cattle and calves.
A seasonal increase in egg prices contrasted with lower prices
received for chickens and turkeys.
Cash receipts from farm marketings in the District states
totaled $1,722,808,000 during January-August this year, or
5 percent more than in the corresponding period in 1955_
CASH RECEIPTS FROM FARM MARKETINGS
Five Southwestern States
LIVESTOCK RECEIPTS
(In thousands of dollars)
(Number]
August
FORT WORTH MARKET
Clau
Oct.
1956
Cattle •••••••••• 108,82'
Calves ••• • ••••• 35,673
Hags ••••••••••• 53,978
Sheep •••••••••• 97,733
I I"dudes goats.
SAN ANTONIO MARKET
Oct.
1955
Se pt.
1956
Od.
1956
Od.
1955
Sept.
1956
72,407
22.346
60,022
58,903
102,862
31,84.7
44,1"'7
84,875
32.577
28,538
4,918
129,675
39,036
28,517
3,826
124,845
2',312
27,544
3,222
139,807
1956
Area
Arizona ••• • •••••••••• ••
Louiliona •••••••••••••••
New Mexico ••••••••• • •• •
Oklahoma • ••• • •• • • ••• ••
Texas .•• • ••. • ••••••••••
Total •••.•••.•••••••••
SOURC~
$
8,320
32,852
5,419
66,010
182,147
5294,748
January-August
1955
1956
8,066
26,91.
5,491
45,712
191,573
$ 186,104
159,431
74,210
328,892
974,171
$
$277,756
$1,722,808
$1,635,652
$
United States Department of Agriculture.
1955
199,719
148,721
70,771
274,557
941,8804
•
MONTHLY BUSINESS REVIEW
Receipts from crops were 11 percent higher, and those from
livestock were 1 percent larger.
187
J CONDITION STATISTICS OF ALL MEMBER BANKS
Eleventh Federal Reserve District
lin millions of dollars)
Changes in accounts at District
weekly reporting member banks in
the 5 wccks ended November 21
reflected the combined impact of
. seasonal factors and Treasury borrowing. Deposits rose $45,275,000, an increase which was
more than accounted for by growth in the demand deposit
accounts of the Unitcd States Government. In large part, the
increase in Government balances reflected bank subscriptions
to a special issue of Treasury bills, for which payment was
made by credit to Government Tax and Loan Accounts. The
special bill issue, amounting to $1,750,000,000, was dated
November 16.
Although gross loans showed a small decline during the 5
weeks ended November 21, the expansive influence of seasonal
CONDITION STATISTICS OF WEEKLY REPORTING
MEMBER BANKS IN LEADING CITIES
Eleventh Federal Reserve District
(In thousand, of dollor,)
Item
Nov. 21,
1956
Nov. 23,
1955
Oct. 17,
1956
~ ASSETS
,
Commercial, industria l, and agricultural loans .•• $1,535,711 $1,576,967 $1,516,445
Commercia l and industriolloans l • • • • • . . • • • •
1,506,045
1,466,971
Agricultural loans 1 , •••••••••••••••••• ••••
29,666
31,474
loons 10 brokers and dealers in securities •.... •
29,663
16.992
26,657
Other loans fo r purchasing or carrying securities ••
142,664
115,751
145,190
Rea l·estale loans ••.•.....•. . .....•••.• • •.•
216.so6
214,364
216,221
Loons to bonks ••• . ..• . ••••••••••••• •.• ••••
699
12,679
25,832
All other loons ••• . •••• ..•....•. •.•••••••• •
529,710
569.603
579,530
Gross loans •.•.••• . • . • . ••.• .. ..•.•. .• ••
Leu reser"es and una l(otoled thorge·offs .•
2,515,766
35,904
2,470,503
25,161
2,515,875
35.821
Net logn$ ...•.•..••.•.•. ••.•• . •.•. .. .••
2,479.664
2,445,342
2,480,054
U. S. Treasury bills ••• ••.•....•.•..••...•••
U. S. Tregsury tertifltates of indebtedness •• . ..•
U. S. Treasury notes .• •••.•• .•. • ...... . .. •..
U. S. Government bonds (inc. g,d. obligolions) ...
Other securities .•• . .••.••••••• •• ••••••••••
126,464
76,566
225.263
796.390
245,666
55,526
53,169
257,569
632,979
244,046
87,148
70,949
220,303
796.930
241,725
Total in"estments ••• ...•....•.... ••. . ••• •
Cosh items in proten of tolledion • •.• ••...•..
Salantas with bonks in the United Stotes •.•..•.
Ba lances with bonks in foreign tounlries ••••••• •
Currenty ond toin •.•.••.•••..•••...••....•
Reser"es with Federal Reserve Bank .... . . .... .
Other assets ••••••••••••••..•.•..•••••••••
1,472,373
423,460
474,871
1,444
47,050
593,736
161,161
1,443,293
395,565
414,496
1,670
46,914
560,494
143,475
1,417,055
442,123
523,437
1,704
47,523
524,651
162,703
TOTAL ASSETS. , ... , ••••••• , • , ...... ,
5,674,001
5,451,269
5,599,250
LIABIlITIES AND CAPITA L
Demond deposits
Individuals, partnerships, and corporetions ....
United States Government ••••.•••••••••••
States and political subdivisions •. . •.•••••••
Banks in the United States •••••.•.••• . ••••
Banks in foreign countries •..•.••.. . • . .. .•.
Certified and offic ers' checks, etc •••.••. •• •
2,848,652
186,124
166,537
956,556
19,565
55,145
2,809,406
100,242
202, 137
887,746
17,602
70,83 1
2,662,962
127,928
155,435
953,287
19,807
70,307
Total demand deposits ••••...•....•.. . •
4,232,579
4,087,964
4,189,726
Time deposits
Indi"idlKJls, partnerships, and corporations ••••
United States Government •• •• ••••••••••••
Posta I 50 vings .••.•....•....••••.•••••••
Stales and political subdivisions .. .•.•.•.••.
Banks in the U. S. and foreign countries .•...•
727,141
12,240
452
130,532
7,005
708,718
11,874
452
132,684
2,025
724,229
12,240
452
130,745
7,282
Toiol time deposits •••• .. . .••..•••••.••
877,370
855,753
874,946
Tolal deposits •• •...•..• • •.•.. • . . •••
Bills payable, rediscounts, etc •.••••..•••...•.
All other liabilities ... .. .. . ...•....•.•....•.
Total capitol accounts ....•....•.•••• • , ••• ••
5,109,949
23.950
103,884
436,218
4,943,717
30,300
68,213
409,039
5,064,674
19,700
83,216
431,660
TOTAL LIABILITIES AND CAPiTAL........
5,674,001
5,451,269
5,599,250
•
1 Prior to Janua ry 4, 1956, ogritulluralloa"l were nat reported separately. Comparable
year-earlier figures will be shown as they became Q'tailable.
Item
Oct.31,
1956
Oct. 26,
1955
Sept. 26,
1956
ASSETS
Loarn and discounts .•.............•. " .•• • ....
United States Government obligations ..•.••• • • . . .
Other s&Curities ...•..... . ....... , •. , , ....•...
Reserves with Federal Reser'te Sank •• , •••.•.• •...
Cosh in vault e ....•.........•.... _. , •.•..• ...
Balances wilh banks in the United Stales, .•... • • . .
Balances with banks in foreign countriest!. , • , .•••.
Cosh items in process of collection. , ••....• . •. . . .
Other ossets e •••.••.•••..•••..••.••••..
53,949
2,357
605
945
149
1,088
2
447
231
$3,782
2,373
572
966
1'2
950
2
402
195
53,893
2,312
600
940
109
1, 158
2
506
2 18
TOTAL ASSETSe .••.. .. . . .. .•.....•.•....•.
9,773
9,386
9,738
LIABILITIES AND CAPITAL
Demond deposits of banks ..•......•..• . •.. ... .
Other demand deposits ..•.. •. , .••••..• .• ... .. .
Time deposits •• , •... . •.. , .•... , ••• , .••......
1,122
6,376
1,387
1,001
6,315
1,267
1,179
6,309
1,388
Toiol deposits •••.•.• , .••••. .••...••. .. .• .•
Bo rrowings e • •• • , ..•.••.. . • ••..•. • • , • •• .••. . •
Other lIoblllties e ,. " .•. " •••.••. • , .••••.. ....
Totol capitol accounts e •.. " •.. " •..• . •.. . .....
8,885
38
102
748
8,583
34
74
695
8,876
28
101
733
TOTAL LIABILITIES AND CAPITALe . . •.••.•.•. ,
9,773
9,386
9,738
e-Estimated.
factors produced an increase of $19,074,000 in commercial
and industrial loans, and "all other loans" - principally consumer loans - showed an increase of $10,073,000. Primarily
responsible for the decline in gross loans was a 824,933,000
reduction in loans to banks. Smaller declines occurred in loans
to finance securities transactions, real-estate loans, and agricultural loans.
Largely reflecting bank participation in the special issue
of Treasury bills, investments of weekly reporting member
banks rose $55,318,000 between October 17 and November 21.
Increased bill holdings accounted for $39,316,000 of this
amount. Changes in other investment categories were COIlsiderably smaller, although all types of investment holdings
increased.
Reflecting seasonal deposit gains and bank credits to
Government Tax and Loan Accounts in payment for the
Treasury's special bill issue, daily average gross demand deposits at all member banks in the District rose $16,294,000
in October. The growth in demand deposits was limited to
country banks, however, as deposits at reserve city banks de·
creased moderately. Both reserve city banks and country
banks experienced time deposit withdrawals. Daily average
time deposits registered the first monthly decline of the year,
approximately two·thirds of which occurred at reserve city
banks.
GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
Eleventh Federal Reserve District
[Averages of daily figures. In thousands of dollan)
COMBINED TOTAL
Dale
Gran
demand
Time
RESERVE CITY BANKS
Gross
demand
Time
COUNTRY BANKS
Gross
demond
Time
Od. 1954 .... $7.259.916 $1.109.374 $3.591.134 $622,569 $3,668.782 $486.805
Oct. 1955 • •. • 7,304,808 1,260,749 3,589,745 736,233 3,715,063 524,516
June 1956 •••• 7.150.377 1,369.915 3.493.663 767,137 3.656.714 602.778
July 1956 •••• 7.271,859 1,380,093 3,579,411 770,067 3,692,448 610,026
Aug. 1956 •••• 7,210,443 1.381.338 3,529,320 764,026 3,681,123 617,312
Sept. 1956... . 7.388.782 1,388,777 3,641,972 764,478 3,746,810 624,299
Oct. 1956 ... . 7.405,076 1,385.71 8 3,613,334 762,475 3,791,742 623,243
MONTHLY BUSINESS REVIEW
188
RESERVE POSITIONS OF MEMBER BANKS
CONDITION OF THE fEDERAL RESERVE BANK OF DAllAS
Eleventh Federal Reserve District
(In thousands of dollars)
(Averages of daily flguras. In thousands of dollars)
Item
Item
October
1956
RESERVE CITY BANKS
Reserve balances ••• • ••• • •• •• • • • • •
Required reserves •••••••• • •• • ••••
Excess reserves •••••••••••• ••••••
Borrowings ••••••••••• • •• • •••••••
Free reserves ••••••••••••••••••••
$ 556,009
549.666
6.341
20,164
-11.643
COUNTRY BANKS
Reserve balances •••••••••••••••••
Required reserves • ••••••••••••• ••
Excen reserves ••••.. .• ..•..•.•.•
Borrowings ••••• • •••••••••••••• .•
Free feserve, •••• • ••• •••••••• • •• •
September
1956
October
1955
569,574
557.310
12,26.4
20.361
-6,117
$ 564.133
551,721
12,'12
14,420
-2,008
446.676
400.366
46,510
3.303
43,207
440.031
392,965
47.066
4.627
42,439
444.119
395,81 a
48,301
5.356
42.945
1.004.665
950,034
54,851
23.467
31,364
1.009.605
950.275
59.330
25.006
34.322
1.006.252
947.539
60,713
19.776
40.937
$
MEMBER BANKS
Reserve bolonces•• •••••••••••••••
Required reserves ••••••••••••••••
Excess reserves •• ••. •• •• •• ••••• • •
Borrowings ••••••••••••••••••••••
Free reserves • •••• ••• • • ••••••••• •
At $1,004,885,000 in October, member bank reserves averaged $3,367,000 lower than in the previous month. Reductions in the reserve balances of reserve city banks more than
accounted for this decrease, as country banks showed a
$2,757,000 increase in reserves. Net borrowed reserves of
reserve city banks increased $9,835,000 in October to an
average of $11,843,000, reflecting larger borrowings and
reductions in excess reserves_ Conversely, country banks
reduced their borrowings from the Federal Reserve bank,
and their free reserves rose slightly to $43,207,000. For all
member banks in the District, free reserves declined to a
level of $31,364,000.
Treasury operations contributed $124,513,000 to member
bank reserves during the 5 weeks ended November 21; and
smaller reserve gains stemmed from currency transactions,
expansion of local Federal Reserve credit, and a decline in
other Federal Reserve accounts_ A $45,373,000 excess of payments over receipts in connection with interdistrict commercial
and financial transactions created the only sizable reserve
drain during the 5-week period_ Reflecting these changes,
member bank reserve balances rose $97,004,000 to a total of
$1,021,554,000 on November 21.
Nov. 21,
Nov. 23.
1956
1955
Total gold certificate reserves •••••... •.. · .•• $ 792.496
6.700
Discounts for member banks • .. •••••.•••••••
102
Other discounts and adyances • •••••• •••• •••
956,562
U. S. Goyernment securities •• •.• •••••• ••.•• •
965,364
Total earning assets •.•••.• . .••••••••.•••••
1.021.554
Member bank reserye deposits ••••.....• . •••
717,163
Federal Reserye notes in actual circulation •• •••
Oct. 17.
1956
$720,217
$744.431
32.545
376
957.669
990.790
.
10,361
o
946.269
964,254
958,650
924,550
726.977
718.531
discounts and advances and increased holdings of United
States Government securities_ Gold certificate reserves rose
$72,281,000. On November 21, Federal Reserve notes in
actual circulation totaled $717,163,000, reflecting declines of
$1,368,000 since October 17, 1956, and $11,814,000 since
November 23, 1955.
The annual rate of deposit turnover rose to 21.8 in October,
compared with 19.0 in September and 19.2 in October 1955.
In line with this development, bank debits to demand deposits
showed a monthly increase of 15 percent in the District's 24
reporting centers.
In addition to the special offering of Treasury bills dated
November 16, a Treasury refunding operation also was conducted during the month. New 31;4 -percent Tax Anticipation
certificates of indebtedness maturing June 24, 1957, and
31;4-percent certificates of indebtedness maturing October 1,
1957, were offered, on an exchange basis, to holders of $9,083,000,000 of 2% -percent certificates of indebtedness maturing
December 1.
4
BANK DEBITS, END-Of-MONTH DEPOSITS
AND ANNUAL RATE OF TURNOVER OF DEPOSITS
(Amounts In thousands of dollars)
DEBITSl
DEPOSITS!
Percentage
change from
October
Area
ARIZONA
Tucson • • • • .•.• • .•• •• $
1956
Oct.
Sept.
Annual rate of turnoVer
October 31,
1955 1956
167.402
21
20
66.652
260.235
10
7
34,2 85
Ocf.
1956
Oct.
Sept.
1956 1955 1956
97,065
20.5
17.4
17.0
7
6
50.620
166,874
16.3
16.7
16.2
15.5
15.7
15.6
$
LOUISIANA
Earning assets of the Federal Reserve Bank of Dallas rose
$6,714,000 during the 5 weeks ended November 21. The overall change featured a decrease in discounts for member banks,
but this decline was more than offset by an increase in other
CHANGES IN FACTORS AFFECTING MEMBER 8ANK RESERVE BALANCES
Eleventh Federal Reserve District
(In Ihousands of dollars)
CHANGEI
5 weeki ended
Nov. 21, 1956
FACTORS
Federal Reserle credit-local • ••••••••. .••....••
Interdistrid commercial and flnancial transactions •••
Treasury operations •••••••••••••••••••••••••••
Currency transactions ••• •• •••••• • •••••••• ..• • ••
Other deposits at Federal Reserve Bank ••• • ••••••
Other Federal Reserve accounts •••••••••••• •• •••
RESERVE BALANCES
November 21, 1956... ••••• ••••
October 17, 1956..... .........
51,021,554
$ 924,550
I Sign of change indicates effect on reserve balances.
+$
+
3,676
45.373
124.513
13.263
2.517
3,422
+$
97.004
+
+
Dec. 28, 1955No",. 21, 1956
+$ 14,721
956,630
+ 962,066
+ 43,213
-
+
2,467
15.771
+$
74.494
Monroe • •••• • •••••••
Shreveport ••••••••••
NEW MEXICO
21
31
29,402
14.8
12.7
11.9
80.271
175.523
161.239
146.3 65
174.326
16,427
2.216.910
273.257
717.146
97.676
2,411.590
22.169
182.066
56.017
46.517
492.736
20.236
76.720
91,745
99.771
17
9
16
19
6
-4
6
20
20
25
20
6
39
6
10
9
3
11
0
6
14
21
9
11
1
-1
17
27
14
15
14
6
51
12
9
14
6
3
9
9
58.700
106.969
114,401
106.663
106.525
21.375
971.714
132.414
372.113
74.233
1.210.965
19.716
99.495
43,562
46.256
353,341
15.947
61.251
67.214
100.900
16.4
19.9
17.0
16.9
19.2
9.1
27.1
24.7
23.2
15.6
23.6
13.6
23.2
16.0
12.6
17.0
15.0
15.4
16.7
11.6
13.9
17.9
14.3
14.9
16.2
9.4
24.6
21.0
19.9
13.2
19.9
12.7
17.6
14.2
11.6
15.6
13.3
14.8
15.6
10.6
14.6
16.7
15.7
15.6
16.6
9.2
23.3
19.9
20.3
13.9
20.6
13.3
16.6
14.0
11.6
15.0
13.4
15.5
15.6
Tolal-24 cities • •••.• • • $6,095,727
14
15
$4,451.737
21.6
19.2
19.0
Roswell •••••••••. .. •
TEXAS
Abilene • •••••••..• . •
Amarillo ••••••••.• . •
Austin .•..• • • • • •.• . •
Beaumont ••• • • ••••••
Corpus Christl • • ••.•.•
Corsicana •• • •••..•••
Dalla s •••• •••••.••••
B Paso •••••••• •• •••
Fort Worth •••• ••••••
Galyeston •••••••••••
Houston •• • ••• • •• • ••
Loredo •• •••.•••.•• •
Lubbock • •••.••..•••
Port Arthur ••••••••••
San Angelo •••• •••• •
Son Antonio •••••• • • •
Texarkana ' •••••••••
Tyle r •••.•••.•••••.•
Waco • • .•••.••.••.•
W ichita Falls • ••..•••
~
10.7
Debits to demand deposit accounts of Indiyiduals, partnerships, and corporations and
of states and political subdivisions.
, Demand deposit accounts of Indiylduols, partnerships, and corporations and of states
and political subd iYlslons.
1 These flgures include only one bonk In Texarkana, Texas. Total debits for all bonks in
Texarkana, Texas--Arkansas, indudlng two banks located in the Eighth District, amounted to
$"2,758,000 for the month of October 1956.
I
•
MONTHLY BUSINESS REVIEW
189
NATURAL GAS , MARKETED PRODUCTION
NEW PAR BANKS
lIn millions of cub ic feet)
The Commercial State Bank, Andrews, Texas, an in.
SlLred, nonmember bank located in the territory served
by the EI Paso Branch of the Federal Reserve Bank of
Dallas, was added to the Par List on its opening date,
November 2, 1956. The officers are: John E. Smith,
President; William C. Young, Executive Vice President;
R . J. Ream, Cashier; and L. P. Alexander, Assistant
Cashier.
The Enloe State Bank, Enloe, Texas, an insured, non·
member bank located in the territory served by the
[lead Office of the Federal Reserve Bank of Dallas, was
added to the Par List on November 6, 1956. The officers
are: B. B. Viles, President; C. E. Adams, Active Vice
President; and Ralph Moore, Cashier.
The conflict in the Middle East has
caused a major disruption of the
normal markcting patterns for petro·
leum and, to some extent, has inter·
rupted the flow of Middle Eastern
crude oil into thc markets of the world. During the first week
in November, the Suez Canal, through which a major portion
.. of this oil had been moving, was totally blocked by the sinking
, of a number of small· and medium·sized ships. At the same
time, a number of pumping stations along the Iraq Petro·
leum Company pipelines were dynamited, and parts of the
pipelines were destroyed. The major effect of these events
has been a disruption of the movement of oil from the Middle
East to Europe, which has necessitated a rerouting of ship.
ments. With a tight tanker situation, the need for moving
oil around the Cape of Good Hope instead of through the
Suez Canal means a sizable delay, as well as a sharply in·
creased cost.
While the United States is not directly involved in thi s
Middle East crisis, the effects upon the marketing patterns
of oi l have also been felt in the United States and its relation·
ship with the other major markets of the world. Normally,
the Middle East supplies approximately 300,000 barrels of
crude oil per day to the East Coast, much of which has been
i
CRUDE Oil, DAilY AVERAGE PRODUCTtON
(In thousands of barrels)
Second quarter
Second quarter
Area
1956
1955
First quarter
1956
louisiana . •.. ..... •. ... .... .
New M.xico •.••........ .. • . •
Oklahoma ••••........•.. . • •
Texas .......•...•......... .
418,800
139,800
168,900
1,239,400
355,200
123,300
173,000
1,143,700
479,500
149,000
195,700
1,324,700
Total .................... •
1,966,900
1,795,200
2,146,900
SOURCE~ United States Bureau
of Mines.
delayed or stopped. Total inJports for the Nation averaged
1,220,000 barrels per day during the week ended November 9,
reAecting a decrease of 231,000 barrels from the preceding
5·week period. In consequence, there has been an increased
demand for southwestern crude as a replacement Ior the de·
clining imports.
This increased demand, in turn, has stimulated an increase
in allowables for three of the southwestern states - Texas,
Louisiana, and New Mexico. The Louisiana ConservationCommissioner issued an emergency order, effective Novem·
ber 12, increasing that State's production allowables by
75,000 barrels per day and providing for an additional 25,000
barrels per day in the December allowables. The Texas Rail.
road Commission increased the number of operating days
from 15 to 16 in December, which raises allowables by 75,503
barrels per day. The commission rejected requests for a
larger increase in allowables because of the currently high
levels of stocks of crude oil and gasoline. Other reasons cited
for the moderate increase in Texas allowables were the prob.
lems of tanker transportation and the fact that the Federal
Government had not suggested any emergency action up to
the time of the hearings. Crude oil production in the District,
averaging 3,352,000 barrels per day in early November,
showed a 2·percent increase over October, and the Nation's
crude production also increased slightly. With new well
allowables, District production in December is expected to
reach a new record.
The Middle East situation also caused a reversal in the
trend of refinery runs, with both the District and the Nation
showing moderate increases. ~ncreased refinery activity,
however, was insufficient to handle the renewed demand , as
crude oil stocks declined. The demand for southwestern crude
oil and refined products firmed prices throughout the structure
and, coupled with the usual seasonal pressures, caused an
increase in the pricc of heating oils. On November 20, heavy
fuel oil prices rose for the second time in less than 2 weeks as
forci gn demand exe rted greater pressure on gulf coast supplies.
Chonge from
Area
ELEVENTH DiSTRICT . .... ...
Texas ................. .
Gulf Coast . ... . .......
West Texal ... .. ......
Eait Texas (p roper) .....
Panhandle ......... . ..
Rest of State ••.. . .. . . .
Southeastern New Mexico ..
Northern l ouisiana ... .....
OUTSIDE ELEVENTH DISTRICT.
•
UN 1TED STATES .......... ..
October
1956 1
October
1955'
September
October
1956 1
1955
1956
3,292.7
2,932.1
584.5
1,221.3
202.1
102.3
821.9
240.5
120.1
3,704.5
6,997.2
3.155.8
2,815.0
583.9
1,101.4
212.9
90.2
626.6
225.0
115 .8
3,575.6
6,731.4
3.318.9
2,959.6
591.7
1,224 .5
202.1
100.6
640.6
237.9
137.0
117.2
.6
119.9
-10.6
12.1
-4.7
15.5
4.3
128.9
265.6
-26.2
-27.5
-7.2
-3.2
.0
1 2 1.4
3,727.4
7,0 46.3
SOURCES, 1 Estimated from American Petroleum Instltvte week ly reports.
2
Unite d States Bureau of Mines.
September
1.5
-16.7
2.6
-1.3
-22 .9
-49.1
For the third consecutive month,
nonagricultural employment in the
Distri c t states durin g Octo ber
reach cd a new record, the total of
4,166,100 being 148,4.00 above a
year earlier. The gain of 15,700 workers from September reo
suIted mainly from seasonal increases in government, trade,
and manufacturin g employment, alLhough gains also occurred
in most other types of employment.
MONTHLY BUSINESS REVIEW
190
BUILDING PERMITS
NONAGRICULTVRAL EMPLOYMENT
Five Southwestern Siotes1
10 months 1956
Number of persons
Odober
October
1956"
1955r
Ty p e of emplo yment
Percentage
change in
¥oluotion from
Percent chong.
Oct. 1956 from
September
1956
Oct.
1955
October 1956
Sept.
1956
Area
Number
Valuation
Oct. Sept.
1955 1956 Number
Valuation
Percentage
change in
¥oluotian
from 10
month.
1955
Total nonagrkulturol
wage and salary workers •• 4,166,100
Manufacturing •••••••• •••
772,900
Nonmanufac:turlng ••••• • • • 3,393,200
Mining •• •• ••••••• ••••
252,900
Construction •••••••••••
301,400
Transportation and public
400,800
utllllles •••••••••••••
Trade ••••••••••• ••••• 1,068,000
Finance • • •••••• • ••••••
175.700
482,900
Service •.... ••.• •••...
Government •• •• •••••••
711,500
4,017,700
747,100
3,270,600
282,100
4,150,400
767,600
3,387,800
257,600
302,500
3,7
3.5
3.7
2.6
6.8
0.4
.7
.2
-1.8
-.4
402,000
1,032, 100
166,700
466,800
674,400
403.700
1,061,600
175,600
481,200
700,600
-.3
3.5
5.4
3.4
5.5
-.7
.6
.1
.4
1.6
2.4.6,500
I Arizona, Louisiana, New Mex.ico, Oklahoma, and Texa,.
e-Estimated.
r-Revised.
SOURCESI Stote employment agendes.
Federal Reserve Bank of Dallas.
Manufacturing employment, which increased 5,300 over
September, also reached a new record of 772,900 workers,
Hirings by aircraft manufacturers and shipbuilders and recall of workers by automobile assembly plants provided the
significant month-to-month gains in the manufacturing sector_
Settlement of a labor-management dispute within the District's steel industry more than ofiset the efiects of a new work
stoppage in the apparel industry.
Unemployment in Texas showed a seasonal decline of 3,300
to reach an October level of 104,200, which is 3,4 percent
of the labor force - or the same percentage as a year earlier,
The value of construction contracts awarded in the District during October showed a sharp decline of 30 percent
from September and was 16 percent below the level of
October 1955, Residential awards decreased 4,2 percent from
the previous month and 33 percent from a year ago, "All
other" construction awards contributed to the over-all decline
with decreases of 24 percent from September and 6 percent
from October last year_ Reduced levels of nonresidential
building accounted for most of the decline in "all other"
construction; public works and utility construction totals
were up from September and a year ago,
VALUE OF CONSTRUCTION CONTRACTS AWARDED
(In thousands of dollars)
Odober
1956p
October
1955
Janua ry-October
Septembe r - - - - ' - - - - 1956
1956p
1955
ELEVENTH DISTRICT ... $ 103,572 $ 123,602 $ 148,725 $ 1,62 1,499 S 1,455,783
Reslde"t1al . . • • • • • •
31 ,995
47,768
54,663
659,214
627,924
All other..........
71,577
75,834
94,062
962,285
827,859
UNITED STATES1.. ... 1,706,406 1,862,692 2,024,794 21,1A7.472 20,027,736
Resid entiaL .. .... .
656,464
782,79 1
763,817
8,7 51,101
8,748,3.41
All other •• •• •• •••• 1,049,942 1,079,901
1,260,977 12,396,371 11,279,395
1 37 states east of the Rocky Mountains.
p-Preliminary.
SOURCEa F. W. Dodge Corporation.
ARIZONA
421 $ 3,003,860 507 212
Tucson ••••.•••
LOUISIANA
3,224,07.4
34 134
45
3
Shreveport •• ••
teXAS
1,5 23,092 _1.4
51
Abilene •••• •••
150
1,413,071
31
-3
Amarillo • •...•
236
.4,858,7 14
2
-7
248
Austin .•••••.•
2,566,556 389
42
363
Beaumont •••.•
2,215,588
40
131
351
Corpus Christi ••
7,011
,063
_49
-35
1,8-49
Dallas ••• •••••
1
51
2,881,883
513
EI Paso ••••• ••
3,261,094 -47 -12
622
Fort Worth ••.•
139,746 -47 -81
111
Gal¥eston ••• ••
16
3
820 11 ,739,825
Houston ••• •• •
42 108
3,546,757
234
Lubbock •• ••••
561.146
-12
2
195
Port Arthur ••••
16
4,206,816 -4
San Antonio ••• 1,655
2,131,930
92
-8
268
Waco •••• ••••
56
836,319 -18
Wichita Falls ••
173
4,025
$ 20,469,6 56
107
4,393
24,155,370
-24
1,744
2,286
2,624
2,841
3,381
20,724
4,172
6,560
998
8,932
2,276
1,837
16,809
2,964
1,483
19,703,520
17,005,921
41,167,784
13,959,068
17,571,288
124,438,694
23,987,835
37,751,124
.4,165,391
132,179,046
20.869,3.45
4,496,694
52,730,697
15,221,598
8,094,712
15
-10
13
80
-33
-18
-20
- 26
-6
7
-16
-5
6
15
-30
10
88,049
S577,967,743
-6
Totol-17 citiel •• 8,662 S55,121,534
0
In the Nation, construction contract awards during October
were down 16 percent from September and 8 percent from
the level of a year ago, Both residential and "all other" construction shared in the declines, although residential awards
showed the greater year-to· year decrease. Cumulative construction a wards from January through October remained
above the totals for the corresponding period of 1955 in
both the Nation and the District,
Building materials production and sales in the District
have been affected by the slowdown in construction during
recent months. Southern pine production in Arkansas, Louisiana, Oklahoma, and Texas declined 12 percent from August
to September and was 18 percent below a year ago, New
orders during September reflected declines of 11 percent
from August and 20 percent from September 1955. Retail
lumber sales in the same staLes during August were down 25
percent from a year earlier_ Brick production and shipments
during September showed year -to·year declines of 14 percent
and 12 percent, respectively_
Industrial expansion plans provide potential support to
future levels of construction, The backlog of proposed industrial building projects in the Nation rose $2,300,000,000
during the first 10 months of this year to reach $16,600,000,000 at the end of October. According to the Engineering News-Record, the $2,600,000,000 backlog in Texas was
the largest for any state, Proposed manufacturing plant expansions in the Distri ct showed an increase during October,
with at least 15 major expansions - to cost $138,000,000being announced during the month. More than $118,000,000
of this amo unt represented the proposal of a gulf coast establishment to enlarge its existing steel plant.
•
@FedFRASER