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BUSINESS
REVIEW
DECEMBER 1959
Vol. 44, No. 12
BASIC METALS MANUFACTURING
IN THE DISTRICT
Scattered over a wide area, from Ajo, Arizona - beyond the
Papago Indian Reservation, almost to California - to the Gulf
of Mexico and to the town of Lone Star in the "Piney Woods" of
northeast Texas, are the less than one dozen major basic metals
factories that are the foundation of the important primary metals
industry in the Eleventh Federal Reserve District. These few
large establishments and a host of generally smaller primary
metalworking plants, which together comprise the District's primary metals industry, are significant both in the employment and
income they generate directly and in the indirect support they
provide for industrial activity. Available data indicate that in
the Southwest (the five states lying wholly or partly within the
District) the primary metals manufacturing industry in 1957
contributed more than $434 million in the value added by manufacturing, employed over 41,000 wo.rkers, and represented about
6 percent of total manufacturing activity, whether measured by
the value added or payrolls.
Mere size of employment or production cannot measure fully
the importance of this industry to a regional economy. The
existence of primary metals production can provide local metal
supplies to facilitate industrialization or, through direct exports,
can be another source of basic income to generate higher levels
of over-all economic activity within a region. The District's industry has been important in both respects.
The primary metals industry in the Southwest has not reached
the relative importance it has in the Nation and accounts for only
FEDERAL
RESERVE
DALLAS ,
BANK
OF
DALLAS
TEXAS
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
about 3.5 percent of the nationwide industry. The level
of local demands for primary metals production, as
measured by the size of the metal-consuming industries
in the Southwest, likewise has not reached its full potential. The value added by this group in 1957 was only
about 3.5 percent of the corresponding national total
- the same proportion as the region's share of primary
metals manufacturing. Southwestern factories account
for approximately 4 percent of the Nation's industrial
use of primary steel, 3 percent of primary aluminum
use, and only 1 percent of primary copper consumption.
Based on the Southwest's share of personal income
(8 percent) and total manufacturing (5 percent) , it
appears that the region could support further expansion
of its metal-fabricating industries and provide greater
local demands for primary metals.
VALUE ADDED BY PRIMARY METAL INDUSTRIES AND BY
TOTAL MANUFACTURES, 1947, 19S4, AND 1957
Five Southwestern States and United States
(Dollar amounts in thousands)
Percent change
Industry g roup
1947
and area
1954
1957
1947·57
1954· 57
36,196
69,663
45
2,734
0
48
25,494
210,214
24,406
304,249
48
422
- 4
45
PRIMARY METAL
INDUSTRIES
Arizona ..... .
loui siana .. •. .
New Mexlco 1• •
Oklahoma .•. •
Texa s . ... . .. .
Total ..... . .
United State s
TOTAL MANU·
FACTURES
Arizona......
$
24,991
2,458
16,442
58,337
$
$
$
318,988
9,746,784
$
434,514
$ 13,063,386
325
128
36
34
$
$
192,497
1,181,649
126,326
580,633
3,501,706
$
309,542
1,491,514
166,457
727,043
4,768,477
269
115
418
113
176
61
26
32
25
36
$ 7,463,033
$144,518,305
159
95
34
24
83,829
694,062
32,136
341,149
1,727,476
Total.... ...
United States
$ 2,878,652
$74,290,475
"1
36,266
47,014
$
102,228
$ 5,733,028
New Mexico ...
Oklahoma ••• .
Texas . .. . ... .
Louisiana ••• ••
$
$ 5,582,811
$ 116,912,526
Data withh e ld to avoid disclosing figures for indiv idual compani es .
SOURCE , United States Bureau of the Ce nsus.
The Southwest has shown rapid growth during the
postwar period. Personal income in the five-state
region rose sharply over the period to a 1958 total of
nearly $30 billion. Reflecting the region's industrialization, the value added by all its manufactures advanced
even more rapidly to reach about $7.5 billion in 1957.
Over the 1947-57 decade, the value added in the Southwest by primary metals manufacturing increased 325
percent and led both total manufacturing in the region
and the national industry. It should be noted, however,
that this lead narrowed from 1954 to 1957, and the
region's primary metals industry appears to have lagged
behind the other manufacturing groups since 1957.
I
BUSINESS REVIEW
A wide variety of primary metals is manufactured in
the District and the Southwest: copper, steel, aluminum, zinc, lead, magnesium, tin, cadmium, and antimony. Some of the minor metals are very important
in terms of national totals for the particular industries.
However, the "Big Three" - copper, steel, and aluminum - are foremost in value of production, and the
remainder of this report is limited to these three metals
and their basic manufacture within the boundaries of
the Eleventh District.
Copper
The copper smelting and refining industry continues
to be the leading basic metal industry of the District,
with a slight margin over its steel and aluminum rivals
in value of production, and the District is a major supplier of the Nation's copper. Located within this region
are five copper smelters and one electrolytic refinery,
representing three major national companies. Total
capacity of the smelters amounts to approximately
424,000 tons of copper per year, or roughly one-third
of the new copper production of all primary smelters in
the Nation. The annual capacity of the refinery, which
is one of the largest of its kind, is about 307,500 tons,
or nearly one-fifth of the national total. Total manufacturing employment at these six plants was around 2,900
workers as of mid-1959; moreover, another 6,500
workers were employed in the company mines and oreprocessing mills, and additional workers are employed
at the more than 100 other copper mines in the District.
Four of the smelters are operated in connection with
company-owned open-pit mines and are located at
Hurley, New Mexico, and Ajo, Douglas, and Morenci,
Arizona. The fifth, at El Paso, smelts both lead and
copper, mainly on a custom basis. The electrolytic
refinery, also at EI Paso, serves principally the southern
Arizona smelters. Primary copper production, started
in 1880, is one of the oldest manufacturing industries in
the District. The newest plant began operating in 1950.
The District smelters mainly produce copper for shipment to the EI Paso refinery and to electrolytic refineries
on the E ast Coast. None of the smelter or refinery production of the District is sold directly to users within
the region. Wire and brass mills process nearly all of
the copper, and major final uses are in electrical
equipment and other machinery, electric and telephone
lines, automobiles, and plumbing and other building
components.
MAJOR BASIC METALS MANUFACTURING PLANTS
IN THE ELEVENTH FEDERAL RESERVE DISTRICT
® COPPER
8STEE~
(i) AWMINUM
Copper smelting by the major producers is often
integrally related to their mining and ore-milling processes in one location or within a fairly small geographic
area. The open-pit mines, which are cone-shaped holes
having giant steps or benches, are worked with large
power shovels, with the ore and waste materials being
removed from the pits by trucks and trains. The ores
are predominantly low-grade copper sulfides that are
concentrated in the mills by a flotation process.
The District's supply of copper ores for its smelters
and refinery is reported to be generally adequate for a
number of years to come. Other raw materials required
in copper processing - such as scrap iron (used in
some copper recovery operations), limestone, silica,
carbon, and sulfuric acid (used in electrolytic refining) - generally constitute only a minor supply problem since they are used in small amounts.
The investment in copper smelting and refining
facilities in the District would be difficult to determine
precisely, but it represents a large and growing value,
probably well above $100 million at current replacement prices. The significant expansion of the copper
industry during the past two decades was promoted,
to some extent, by various types of Government defense
programs, such as wartime Defense Plant Corporation
projects and postwar Government purchase guarantees
and rapid tax amortization certificates.
Following the Korean War, from 1954 to the first
part of 1959, District copper production showed characteristic variability, but its trend line was level. Primary
smelter output during the first half of 1959 was about
equal to the 1954 rate in both the District and the
Nation. Over the past 5 years, employment in District
copper smelting and refining has decreased slightly, as
aga1O~t sha~p gains for other manufacturing employment 10 Anzona and New Mexico.
.
The copper concentrate, being about 30 percent
copper, is the raw material for the smelter. It is first
placed, along with limestone, into a large gas-fired
~ltho~gh oth~r ~ypes of industry are advancing
furnace. Iron, sulfur, and other impurities are decreased :apldly 10 the DIS~ct, copper continues to be very
but not completely eliminated in this first smelting Important to the regIOn's economy. The total value of
process. The copper material is then poured into other
furnaces, along with silica, and air is blown into the
furnaces ; this process removes most of the remaining
MINE PRODUCTION OF COPPER
SE~ECTED MINES IN T HE E~ E V E NTH FE D ER A~ RESE RVE DISTRICT
iron and sulfur and produces relatively pure copper.
AND UNI T ED STATE S TO TA ~ S
This generally is put into a refining furnace; here, after
1.2
further oxidation, carbon - in the form of green hard1.011 - - - 1 - - wood poles - is introduced to remove the excess oxygen. The resulting copper has a purity of about 99.75
percent or greater. It is cast into anode form for shipment to an electrolytic refinery, especially if it contains
0.61---+---1---1---+---1------1 0.6
silver and gold, or may be cast as fire-refined copper
for the market.
MI L LIONS OF SHORT TONS
At the electrolytic refinery, the copper anodes are
placed in tanks or cells, and electricity is passed through
the cells to separate the copper from gold, silver, and
other impurities. The process recovers valuable byproducts and improves the electrical conductivity of
the copper.
0.41-- - + - - + - - - l - - - I - - - - l - - - J O.4
...........-r--------------.. . . .---.....-.........-
1----1- "
*
EL EVENTH FE DERAL
RESERVE DI STR ICT
E
0 2
•
1~''47;-----;;:!;;;;-----;-f.;-;---~,.---..,.,
;;:
1 9''=-55=------,I..J.957=--1.-J95~
BUSINESS REVIEWI
smelter output in periods of high production amounts
to over $200 million per year. The smelters and refinery
have a combined annual payroll of about $13 million,
and total expenditures for transportation, power, gas,
and supplies would be several times this amount. There
is an even larger total expenditure in the mining and
milling operations, and the copper industry provides
a significant share of the tax revenues in Arizona and
New Mexico.
In the first half of 1959, before strikes shut down
all but one of the basic copper manufacturing plants
in the District, the industry was operating at a high
level. The recovery in demand that began in 1958
raised domestic copper prices from the 1958 low of
25 cents per pound to over 30 cents per pound during
the second half of 1959. Settlement of the copper and
steel strikes should permit some further cyclical gain
in output.
1escence and high cost of replacement of plant and
equipment.
It appears that, although the basic copper manufacturing industry in the District cannot now be considered
a strong growth industry, it should continue as a fundamental and important support to the regional economy.
Steel
There are two major integrated steel mills in the
District, both of which are in the State of Texas; one
is at Houston and the other, at Lone Star. The two
plants have a combined capacity of 1,800,000 tons of
steel per year and employ a total of 7,500 workers.
Other smaller plants bring the District's total steel
capacity up to 2,381,450 tons. While important to the
area in many ways, District steel production is a relatively small part of the national industry, accounting
for less than 2 percent of total productive capacity.
Looking beyond the immediate future, some companies are expanding District mining and milling operations, but the major producers are not planning any
significant changes in smelting and refining capacities
and expect their relatively level output to be a declining
proportion of the increasing world supply. In fact, there
may be actual curtailments at existing producers in the
next year or two, partly because of competition from
two new large copper mines in South America. The
total United States share of world copper production
has reflected a secular decline over the past 50 years,
and the Nation has been a large net importer of copper
since the beginning of World War II.
The mills produce primarily for a specialized market
- the petroleum industry; and ordinarily, all but a
fraction of their sales are within the Southwest. Major
products are cast-iron and steel pipe, plates, bars, tubes,
structurals, tank heads, nails, and wire. Perhaps half
the production is sold in the form of pipes and tubing
directly to the oil and construction industries. Most of
the remainder is sold to a large number of other companies for further manufacture, with many of these
produ'cts going ultimately to the oil industry.
Rising labor costs and their relation to the import
threat are considered by the District producers to be
another serious problem. Other less urgent problems
include shifts in market preferences for various types of
copper, shifts in the pattern of copper supplies affecting
the relative advantages of particular locations, technical
and economic challenges imposed by normal depletion
of the richer and more accessible ores, and the obso-
The Texas steel mills secure most of their iron ore,
limestone, and scrap from within the State but import
some ore from Mexico and South America. C0al is
obtained from Oklahoma mines, with additional
amounts shipped from Alabama. Although new sources
of coal are being investigated, the existing sources of
all these basic raw materials are considered adequat~
for potential requirements.
Steelmaking in the District is basically similar to
processes used elsewhere. The integrated mills have
their own blast furnaces using mainly ore, coke, and
Copper imports are a source of concern to District limestone to produce iron, which is converted, in comproducers, even though raw copper imports have not bination with scrap metal, into steel in open-hearth
shown an upward trend in the past few years and the furnaces. The ratio of scrap to iron consumed in the
import duty on copper was reimposed in 1958 after a steelmaking process at District mills is higher than the
7 -year suspension. The concern stems mainly from the national average. In addition to open-hearth furnaces,
expectation of further large increases in foreign copper major steel facilities in the region include electric furproduction, especially in South America and Africa, naces; semifinishing rolling mills; pipe and tube mills,
and, perhaps more important, expanding foreign com- including new stretch-reducing facilities; bar, rod, and
petition with respect to manufactured copper products. wire mms; structural mills; and plate mills.
I
BUSINESS REVIEW
The location of the two integrated steel mills within
The District steel industry is important to the econthe District was determined by a number of factors. omy of the Southwest in a number of ways. It provides
Major considerations that prompted Government agen- for a significant share of the existing steel requirements
cies to assist the initial development of the Houston of the region and, to some extent, facilitates the growth
steelworks in 1941 and 1942 were the availability of of other industries through its impact upon regional
necessary scrap and other supplies and the strategic income and by providing local steel supplies. The total
location away from the principal industrial centers. value of steel produced by the two major plants reached
Defense considerations also were important in the Gov- an estimated annual rate of slightly more than $200
ernment's decision to build the original coking and iron- million during the first half of 1959, and the area paymaking facilities in northeast Texas in 1946. Further roll of the two companies amounted to an annual rate
development of the industry by private business was of nearly $60 million, or approximately 3 percent of
predicated largely upon the regional market provided the total manufacturing payroll in Texas. Current exby the oil and gas industry. By 1959, a total of about penses other than wages and salaries provide still other
$165 million had been invested in the major plants.
income for the region.
The specific locations within the region were selected
because of supply considerations. The Houston plant
is located adjacent to deepwater shipping and can
receive supplies at cheap water rates, while the Lone
Star plant is located adjacent to its own iron ore mines
and within a relatively short distance of the company's
Oklahoma coal mines. Other locational advantages
considered were the potentially favorable processing
costs and adequate water supplies.
STEEL PRODUCTION CAPACITY, 1947-59
Texas and United Siaies
IAnnual capaciti es. In net ton s of raw ste el)
Texes a s percent
of United Stotes
January 1
Texa s
1947
1948
1949
488.320
582.320
598.320
91.241.250
94.233.460
96.120.930
0.5
.6
.6
1950
1951
1952
1953
1954
785.660
862.320
1.072.320
1.269.720
1.789.900
99.393.000
104.230.000
108.588.000
117.547.470
124.330.410
.8
.8
1.0
1.1
1.4
1955
1956
1957
1958
1959
1.789.900
1.824.350
1.976.850
2.239.750
2.381.450
125.828.000
128.363.090
133.459.150
140.742.570
147.633.670
1.4
1.4
1.5
1.6
1.6
United States
SOURCE , American Iron and 'Steol Institute .
The industry has grown rapidly during its brief history, and the steelmaking capacity of all plants in Texas
has increased from about 1,790,000 ingot tons in 1954
- the first full year of integrated operations at the
Lone Star plant - to over 2,380,000 ingot tons at the
present time. Thjs 33-percent increase compares with
the national expansion of 19 percent. The value of
steel production in the State rose 68 percent from 1954
to 1957, compared with a 36-percent increase in the
value added by all manufacturing in Texas.
During the first part of 1959, prior to the steel strike
which shut down the Houston mill, the local steel industry was operating at over 90 percent of capacity-compared with about 50 percent in the first half of 1958,
when the petroleum industry adjustment caused declining demands for oil field equipment, structural steel,
and other metal products. With the steel strike at least
temporarily halted, the District mills are expected to
resume high-level operations.
The industry is not without problems, however. Oil
imports already have had an impact upon the market
for steel; despite oil import controls, the pressure of
foreign competition may be a moderating influence on
the growth of the region's oil industry and, consequently, the market for domestic steel. A more recent,
but growing, threat to the local steel producers is the
rise in imports of foreign steel products. An increasing
supply of foreign barbed wire, structural steel, reinforcing bars, pipe, rods, nails, and plate is being received
in the Houston port. Estimated at one-fifth of all steel
imports in the Nation, the volume entering the Houston
port during the first half of 1959 was nearly 250 percent
above a year earlier, although anticipation of the steel
strike probably caused some of this rise.
Despite these problems, it is expected that the District's steel industry will continue to grow at a healthy
rate. The general expansion of industry within the
region is providing growth in the number of metal fabricators and an expansion of the steel market.
The principal District producers have not revealed
plans for any major increases in capacity, but new, more
efficient production methods are continually under
study. An oxygen injection technique for open-hearth
furnaces was introduced recently, and a "direct reducBUSINESS REVIEWI
tion" plant which would use available gas, instead of
coal, in making iron is reportedly under consideration.
Meanwhile, there are a number of proposals for new
iron and steel plants in the western areas of the District,
such as the plans to build a $3.2 million, 48,000 tonper-year steel mill near EI Paso to utilize steel scrap.
Another company has announced plans for a $15 million, 500 ton-per-day steel mill in Arizona at Clarkdale;
while this town is outside the District, the plant could
have a beneficial effect on the District economy since
it would make steel from the iron in waste copper slag,
some of which probably would be purchased from
points within the District. In addition, there are other
proposals for iron and steel plants in Arizona and New
Mexico to utilize the magnetite iron ore of the area.
Aluminum
Primary aluminum production in the District began
in 1950, with the industry being attracted by raw material and power supplies and power cost considerations.
Three primary aluminum reduction plants (or smelters), all located in Texas, make the State the second
largest producer in the Nation. These plants have a
combined capacity of 375,000 tons of aluminum, or
about 15 percent of the national total, and employ
2,650 workers. Closely allied with the aluminum
smelters are two plants which produce alum~na, the
major raw material used in the production of the metal.
The alumina plants employ a total of 950 workers and
account for 28 percent of national capacity.
District reduction plants are located near Corpus
Christi; at Rockdale, in central Texas; and at Point
Comfort, on the coast near Port Lavaca. The two
alumina plants are located adjacent to the reduction
works near Corpus Christi and Point Comfort. In addition to the plants within the District proper, there are
two reduction works and two alumina refineries in
Arkansas and one reduction plant and three alumina
establishments in southern Louisiana.
All three District smelters produce pig and ingot
aluminum, most of which is shipped to out-of-District
company or independent mills for further processing.
At present, the major consuming industries of primary
aluminum are construction and related manufacturing,
the aircraft industry and other types of transportation
equipment manufacturing, consumer durables production, and the electric utility industry. However, increasing use is being made of aluminum in a wide variety of
I
BUSINESS REVIEW
fabricated metal products and machinery and in such
"growth" lines as packaging, boats, and bridges. Although only a small part of the national market for
aluminum is in the Southwest, regional output of aluminum products has risen during the past few years.
Primary aluminum production processes require
several steps, the first being the refining of alumina
from bauxite ores. About 2 tons or more of the bauxite
are required per ton of alumina, and it is important
that this stage of production be close to the ore or
accessible to imports via cheap ocean shipment. The
ores received at the Texas refineries are mainly from
Jamaica, the Dominican Republic, and Surinam (Dutch
Guiana). Also required in the production of alumina
are soda ash and lime, both of which are obtained from
local sources by the District producers.
The aluminum metal is extracted from the alumina
in an electrolytic process requiring carbon, which is
obtained mainly from Texas and California petroleum
coke and Ohio coal tar pitch, and synthetic cryolite
shipped from east St. Louis and plants in Arkansas.
The production of each ton of the metal consumes about
2 tons of alumina, two-thirds of a ton of carbon, and
fractional amounts of the other raw materials. The
various sources of supply for District plants are all considered adequate for future requirements.
Electric power is an important item in the production
process; about 20,000 kilowatt-hours of energy are
required for each ton of primary aluminum. Low-cost
electricity attracted the Nation's earlier smelters to the
hydroelectric sites, but as the better hydroelectric sites
were utilized, the newer aluminum plants sought other
low-cost power sources. Two of the Texas plants use
natural gas to generate electricity, while the third uses
low-grade lignite coal strip-mined in an area close to
the smelter.
The Texas aluminum plants are located favorably
with respect to the cost of transporting raw materials;
however, their power costs probably exceed the hydroelectric-power costs of plants in the Pacific Northwest,
and they are far removed from the aluminum-processing
centers in the north-central and northeastern parts of
the United States. Nevertheless, the total production
costs at the Texas plants probably are competitive with
costs of most existing plants in other regions.
Aluminum production is characterized by large capital expenditures by a few major companies, with more
than $360 million being invested in aluminum and
alumina facilities in .the District. Federal Government
encouragement for a portion of this investment was
provided by defense certificates for rapid amortization
and by Government purchase guarantees. The companies spend sizable sums in the region for current
expenses, including an annual payroll of almost $20
million.
The District aluminum industry has shown rapid
growth, despite production cutbacks during the recent
recession. As a result of declines in both prices and
output, the total value of District aluminum production
during 1958 and the annual-rate value for the first half
of 1959 were both below the 1957 rate of about $200
million. Employment also has been reduced over the
past few years, but District aluminum tonnage increased
about one-third from 1954 to early 1959, or approximately the same as the industry's national rate of gain.
By the summer of 1959, the three smelters were
operating at about 85 percent of capacity, and nearly
full-capacity operations are expected after the economy
recovers from the steel strike. Like the copper and steel
industries, the aluminum producers reduced output
sharply during the 1958 recession, and a major expansion program was halted during that year. With
improved operations, the building program was subsequently resumed and was completed recently.
The aluminum companies operating within the District expect continued profitable operations of their
District facilities but, despite forecasts of strong growth
in national demand, do not anticipate any significant
expansion of District facilities, except for the possibility
of a further increase in local alumina capacity. Expectation of a long-term rise in the price of natural gas for
electricity generation is one limiting factor to future
District aluminum expansion. Smelting plants are being
constructed in the Ohio River Valley to take advantage
of new developments in the use of local coal supplies
to generate low-cost electricity, and some additional
expansion is indicated for the Pacific Northwest also.
Thus, the District's share of total aluminum production
PRIMARY ALUMINUM PRODUCTION CAPACITY
TEXAS AND UNITED STATES
MII.LIONS OF SHORT TON S
MILLION S OF SHORT T ONS
3.0
3,0
2 .5
~ 2 .5
E
/
UNITED STATES . /
2. 0
I. 5
O~
V
./
o. 5
2.0
~
I ,5
I. o
TEXAS
:S:-r-i---i--~E
'~---i--i--i-
1-0---.. ",
o
1951
~
1952
1953
*
1954
1955
1956
1957
1956
1959
0 .5
0
1960
~_-~:~,I~~~:~~O,oOO toni or capacity 10 b, compl'ltd In 1960.
SOURCES IAmerican Bunou of Mtlol $lolI,lIel,
U.S. Bunouof Min •• .
capacity, after declining from 21 percent in 1956 to
15 percent at present, is expected to decrease further
during the next several years.
The problems confronting the aluminum industry
are a?out th.e same as those affecting the copper and
steel mdustnes. A large volume of imports has come
from Canada for a number of years, and the amount
from other countries is beginning to increase. The new
~t. Lawrence Seaw.ay is ~xpected to encourage foreign
Imports to processmg mills in north-central industrial
centers. Sales of surplus aluminum by Russia have had
a d~pressing effect on domestic prices in recent periods,
while costs of labor and new capital equipment continue upward. Within the region, uncertainties regarding the state tax structure in Texas are causing
additional worries.
The dominant fact reg~rding the national aluminum
industry, however, is not its problems but its strong
growth trend. This will tend to cushion otherwise difficult adjustments and to support the level of operations
at the existing District plants.
B. WILLIAMSON
Industrial Economist
ROBERT
B,USINESS REVIEW
I
BUSINESS
REVIEW
BUSINESS, AGRICULTURAL, AND FINANCIAL CONDITIONS
Eleventh District department
store sales and ir:wentories both
rose more than seasonally during October and were well
above the October 1958 levels.
Substantial year-to-year gains were recorded in sales
of major durable goods, while soft goods sales
showed somewhat smaller increases. New car registrations in the District's four most populous areas
rose sharply during
October
-_.
- ---. .
oil stocks are in good balance with industry requirements, but stocks of gasoline and distillate fuel oils
continue to depress market prices.
Industrial production in Texas edged downward
in October under the impact of weakness in petroleum refining and curtailments stemming from steel
shortages.
Nonagricultural employment in the District states
achieved another small seasonal rise in October,
led by further increases in government and trade
employment. Unemployment in Texas showed a slight
decline.
Construction contract awards in the District states
decreased further in September, as a slowdown in
residential building led a general decline in construction activity.
November marked the fifth consecutive month
that the Texas crude oil producing schedule was set
at 9 ' days, and District production averaged 7 percent lower than a year ago. District refinery output
advanced 5 percent in the first half of November
buf also remained lower than a year earlier. Crude
Department store sales in the
• District dl.lring October rose
more than seasonally from September and were 7 percent
greater than in October 1958.
The seasonally, adjusted sales index was 170 percent
of· the 1947-49 average in October, compared with 167
in September and 159 a year ago. Cumulative sales for
the first 10 months of 1959 were 8 percent above those
in the same period last year.
As in recent months, year-to-year gains were recorded during October in each of the major hard goods
lines, with large increases of 20 percent, 19 percent,
and 18 percent, respectively, for sales of domestic floor
IBUSINESS
RE,YIEW
Freezing temperatures during the early part of
November ended the 1959 growing season in the
District. Although the freeze was ahead of schedule
in many areas, little damage resulted. Late-season
forecasts of major crops continue favorable. Farm
commodity prices have weakened as marketings have
increased.
Commercial and industrial loans at weekly
reporting member banks in the District expanded
moderately in the 4 weeks ended November 18, but
all other types of loans declined. Investment accounts
decreased in response to bank sales of securities
acquired in recent Treasury financings, and deposits
moved lower as a result of withdrawals by the Federal
Government and by individuals and businesses. Bank
reserve positions in October were approximately
unchanged from September.
coverings, major household appliances, and radios,
television sets, and musical equipment at the reporting
stores in the District. Sales of furniture and bedding
rose 8 percent. Part of the increased sales of major
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
Eleventh Federal Reserve District
(1947-49
= 100)
SALES (Daily average)
STOCKS (End 01 month)
Seasonally
Date
Unadjusted
adjusted
1958. October. . . . . .
1959, August........
September. . . .
October. . • • . .
165
176
1 60
177
159
189
167
170
rp -
Revi se d.
Pre liminary.
Unadjusted
186r
182
192
206p
Sea sonallY
adjusted_
169r
182
182
187p
DEPARTMENT STORE SALES AND STOCKS
(Percentage change in retail valuo)
STOCKS
(End of month)
NET SALES
Oct. 1959 from
Oct. 1959 from
Area
Total Eleventh District. ..... . .... . .
Corpus Christl •.••.. • ..... ••• .•..•
~~~~H~~l iii ii~ iii iii iii iii i~ i
Shreveport, la . . ...... . .... . .....
~t~~~ 'c1ti;; : : : : : : : : : : : : : : : : : : : : :
Sopt.
1959
15
23
16
17
18
8
20
7
17
14
Oct.
1958
7
0
14
-1
3
10
2
5
-1
9
10 mo •. 1959
camp. with
10 mos. 1958
Sept.
1959
Oct.
1958
8
2
12
3
6
12
4
7
7
10
7
7
7
6
7
5
8
3
4
10
10
1
16
3
4
20
3
8
1
10
household appliances (including stoves, refrigerators,
and washing machines) is probably due to recent publicity about a possible scarcity of these items because
of strike-induced steel shortages. Wearing apparel sales
were also strong, with gains over a year ago of 18 percent in sales of women's and misses' dresses and 5
percent in sales of men's clothing.
Department store inventories in the District also rose
more than seasonally during October and were 10
percent above the year-earlier level. Orders outstanding
declined seasonally, reflecting the usual rise in receipts
of goods for pre-Christmas sale, while new orders placed
decreased 7 percent from the preceding month. The
placement of orders for goods during October was 11
percent above a year ago, and end-of-month outstanding orders were 17 percent higher than in October
1958, evidencing merchants' expectations of strong
consumer demand in the spring of 1960.
The introduction of the 1960 automobiles in October
boosted new car registrations to 10 percent over September in the four most populous areas in the District
- Dallas, Fort Worth, Houston, and San Antonio.
Partly reflecting the generally earlier introductions this
year, substantial gains were scored over a year ago,
ranging from 37 percent in Fort Worth to 62 percent in
Houston. Total registrations in October for the four
areas rose 48 percent above a year earlier. For the first
10 months of 1959, cumulative registrations were 40
percent above the comparable 1958 period and were
larger than in any previous year except 1955 .
A rapidly moving dry norther
pushee into the Southwest during the first week in November,
plummeting temperatures and
bringing the 1959 growing season to a close in most sections. The low temperatures
were about on schedule in the Southern Low Rolling
Plains of Texas but were about 3 weeks early for southcentral areas and 6 weeks early for extreme south
Texas. Following the early-November freeze, weather
c?nditions have been cool and generally damp and
dIsagreeable because of a series of recurring cool fronts.
Most of the wheat seeded this fall for harvest in
1960 is making excellent growth as a result of favorable moisture conditions. Very little acreage remains
to be planted. In many parts of the northwestern section
of the District, cattle are increasingly being turned in
t? graze on the succulent wheat forage. In eastern sectIons, most of the intended oat acreage also has been
planted, and early fields in the central Blacklands are
4 to 6 inches in height. In areas of the south-central
and Plateau counties of Texas and in Louisiana, wet
~elds have dela!,ed seeding of some grain. Flax planting
IS under way 1D south-central and southern counties
of Texas.
The low temperatures halted cotton growth throughout most of the late sections in the District. As soon
as the plants are defoliated, full-scale machine harvest
will permit completion of harvesting operations. Virtually all of the cotton in the Blacklands and northeastern
sections has been harvested, and more than two-thirds
of the ~rop in the Southern High Plains has been ginned.
In Anzona and New Mexico, cotton harvest is well
advanced, and many fields are near the scrapping stage.
Cotton production in the District states is estimated
as of November 1, at 6,533,000 bales, which is one~
tenth greater than both a year ago and the 1948-57
average. This figure is only about 45,000 bales smaller
than the month-earlier estimate. The latest forecasts for
each of the District states place this year's production
substantially above the outturn last year. The Texas
cotton crop is estimated at 4,570,000 bales, or about
30,000 bales below the month-earlier forecast but 6
p.ercent large~' tha~ in. 1958. This is the largest crop
Slllce the all-tIme hIgh 1D 1949, and the indicated yield
of 348 pounds per acre is the second highest of record.
Virtuall~ all of. the record grain sorghum crop has
been combmed, wlth only a few fields remaining in the
extreme northern part of the High Plains of Texas and
in New Mexico. Latest estimates of grain sorghum production in the District states are up almost 20 million
bushels from early-season forecasts and, at 326 million
bushels, are 7 percent larger than last year's bumper
crop.
8 U SIN E S S REV lEW
'I
CROP PRODUCTION
Texas and Five Southwestern States
(In thousands of bushe ls)'
TEXAS
Estimate d
Nov. I, 1959
Crap
Catton l •.
. . •. .. •
4,570
Corn •..•..... • • 43,708
W inter whe at . • •• 56,440
Oats .•.... . .. .. 24,156
6,884
Barley •• • • ••• • •
135
Rye • • •• ••••••• •
Rices .... . ..... . 13,136
Sorghum grain ••• 292,296
Fla xsee d. • • • • • •
385
Hay' .. .. ... ... .
2,359
Peanuts' • • • • • •• • 221,200
Irish patata es 6 • ••
Sweet r otataesG ..
Pecans •.. o
• •• ••
2,620
1,680
23,000
FIVE SOUTHWESTERN STATES'
Estimate d
1948-57 Nov. I, 1959
Averag e
1958
4,308
4 2,973
73,040
53,130
10,143
338
11,938
273,066
336
2,487
22 4,110
2,285
1,210
26,000
3,956
4 1,Q73
35,358
24,373
2,206
223
13,013
113,524
753
1,753
193,061
11,513
' 1,351
3 5,040
6,533
73,449
150,771
38,636
29,5 86
1,025
26,046
325,867
4 55
6,541
357,700
5,852
6,815
61,900
Ave ra ge
1958
5,953
70,560
196,780
77,8 23
35,848
1,679
23,15 8
305,047
361
6,773
371,060
5,192
6,107
60,000
194 8-57
5,962
70,4 87
103,644
38,937
13,757
853
25,360
13 2,824
1,0 23
5,156
297,87 9
' 3,543
' 6,366
73,180
1 Arizona, LOUi si ana, Ne w Moxico, Oklahoma, and Texa s.
• In thou sand s of bal es .
3 In tho usand s of bags contain ing 100 pounds each.
, In thou sand s of ton s.
5 In thou sand s of pound s .
• In thou sand s of hundre dwe ight.
7 Ave rage, 1949-57.
SOURCE. Unite d States De partm e nt of Agriculture.
Harvesting of late peanuts continues to be hampered
by inclement weather; low temperatures damaged some
unharvested crops. Soybeans are being combined in the
High Plains and Blac14ands. Output ~f p.eca~s in the
four major producing states of the DIstrIct IS placed
at nearly 62 million pounds, which is 3 percent above
last year's production.
Considering the earliness and severity of the freeze
the first week in November, damage to vegetables was
relatively light. Harvesting of lettuce in the Panhandle
area was ended by the low temperatures, and shipments
of onions, potatoes, and carrots have slackened. In
the Winter Garden and Eagle Pass areas, heavy frosts
damaged tender vegetables, such as beans, peppers,
eggplants, and tomatoes. Cabbage is available in volume and other hardy vegetables are making good
gro~th. In the Lower Valley, winter vegetables are in
satisfactory condition, and shipments of some vegetables are increasing.
Cold, damp weather caused considerable shrinkage
of unprotected livestock; however, the abundant fee?
and forage supplies and the generally excellent condItion of the animals greatly reduced the effects of the
weather. The bulk of the fall calf and lamb crop has
been shipped or contracted. Range feed conditions in
the major range states of the District are above average
and compare favorably with the exceptional range forage situation last year.
The index of prices received by Texas farmers and
ranchers for all farm commodities declined 3 percent
J BUSINESS
REVIEW
during the month ended October 15, 1959. At 266
percent of the 1910-14 average, the index was 7 percent
below a year ago. The all-crops index was 1 percent
lower than the month-earlier level, and the livestock
and livestock products index was down 5 percent.
"'"'' '' ''
....."" ....,
Lending activity at weekly re-
/t·· ·~ ~i'-.V·{'G ~ '~\ p~rti-?g ~ember ban~s in the
{~3 IFINANCE , JJ.} DIstnct mcreased dunng the 4
\~.~ q) .~$..At ~?1 -t;./ weeks ended N oveI? ber 18, a~d
.""""".". . , . """. "",,......
gross loans (excludmg domestic
interbank loans) expanded $7.3 million. This gain,
although small, represented a reversal of the preceding
downward movement. Commercial and industrial
loans, which rose $18.4 million between October 21
and November 18, more than accounted for the over-all
loan increase. Consumer-type loans, real-estate loans,
securities loans, and loans to nonbank financial institutions registered individual declines ranging between
$1 million and $5 million, while agricultural loans
showed only a nominal decrease. Total loan expansion
during the 4-week period was smaller than the $23.4
million gain posted during the comparable weeks of
1958.
Investment accounts at the District's weekly reporting
banks moved lower between October 21 and November
18, as banks liquidated a portion of the securities
acquired in recent Treasury financings. Treasury bill
holdings decreased $67.2 million, and this decline was
accompanied by a reduction of $5.9 million in certificates of indebtedness and a decrease of $540,000 in
non-Government investments. These declines were partially offset by an expansion in holdings of Treasury
notes and bonds, however, and total investments were
reduced $64.7 million.
Both individuals and businesses and the Federal
Government made substantial demand deposit withdrawals during the 4 weeks ended November 18, but
NEW PAR BANK
The Cove State Bank, Copperas Cove, Texas, an insured nonmember bank located in the territory served
by the Head Office of the Federal Reserve Bank of Dallas,
was added to the Par List on its opening date, November 21, 1959. The officers are: W. C. Hooper, President
and Chairman of the Board, and B. J. Averitt, Vice President and Cashier.
CONDITION STATISTICS OF WEEKLY REPORTING
MEMBER BANKS IN LEADING CITIES
RESERVE POSITIONS OF MEMBER BANKS
El eve nth Fe d e ral Re se rve Di strict
El eve nth Fe d e ral Reserve District
(Ave ra ges of da ily fig ure,. In thousands of dolla rsi
(In thou sands of dolla rs )
Ite m
Nov. 18,
1959
Oct. 21,
1959
Nov. 19,
1958
ASSETS
Comme rcial and industrial loans • . . ........ . . . $ 1,52 6,52 8 $ 1,508,1 47 $
33, 36 3
33,42 8
Agricultural loans .••. . • ..•...•.... .. .. . . • . .
38,547
Loan s to brokers and d eal ers fo r purcha sing
or ca rryi ng :
74 3
11,810
743 }
12,288
19,904
10,301
188,2 15
12,6 22}
188,584
178,767
All other loans . .. .. .. . ..• • . . .. . .. .. .. .. . . .
127,396
117,663
159
4 3,465
2 10,2 88
710,67 8
128,527
119,039
138}
5 1,150
211 ,2 36
715,111
Gro ss loans • ••.... . • •..• . . . .. . • .. ••. ...
Less rese rv es and unallocat e d cha rg e -offs ••
2,980,609
50,243
U. S. Gove rn me nt securi ties •. • • •...•... . ..•
Othe r secu rities •• . .•..• . . . •• . . .. • ... • . ..
Oth er loans f or purchasing or carry ing :
U. S. Gove rnm e nt securi ties • . • • .•. . . .... .• •
Other secu rities .. •...•... . • •. .... . .....•
loans to nonbank flno nclal instituti ons:
Sa les flnonce , personal flnance, etc.. . . . . .. . .
Saving s banks, mtg e. cos., ins. cos., e tc. . . ... .
loans to foreign ban ks •• . . ..•. . . . . .. •.....•
Loons to domestic comm erci al banks •••• . • •.. • .
Re al- estate loans • • . .• . . • . ••• . •. .. . . •.. . . .•
Net loans . ... •..• .. . . . . . . . . .. .. .. .. . ..•
Tre a sury bills .... . . .. . • ..... ..... .... . .. . .
Tre a sur y certifl cates of ind e bte dn ess •••. .. .. • •
Tre a sury notes and U. S. Gov e rnm e nt bonds,
including guaranteed oblig ati ons, matu ri ng :
Within 1 ye ar .. •• . .. . .• .. • . .. . .. . •.... •
After 1 but within 5 yea rs . . . . ..... .. .. . . .
Aft e r 5 ye ar s • • . .•• , ..• ••. •• ...... •... . .
Othe r secu riti es . ••.• . • . .•.•••• .. .. . •......
-2,930,366
45,913
39,749
65,812
791, 24 6
319,506
344,61 4
---
--2,930,714
2,730,101
45,891
- 113,091
- -
2,684,210
45,658
64,85 1
163,031
36,625}
818,457 1,199,618
312,545
326,635
345,154
Total invostments • •• ..... .• .. ••.. . .• • . . .•
-1,606,8 40
Cash it e ms in procoss of colle ction . .... . .• .. . .
Balance s with banks in th e Unite d States . • •. ...
Balances with banks in foreign co untri es . ... •..
Curre ncy and coin . •.•.• . ••...• ... •.••.. .. •
Rese rves with Fe de ral Rese rve Bank ••.. •.....•
Othe r a sse ts ••• •••.•.. ••. • ...•..•.. . . ... ..
504,818
4 80,176
2,417
50,267
558,789
205,460
TOTAL ASSETS . ••. . ... .. ... . . .. . .. . ..
6.339.133
6,350,218
-6,186,353
---
Banks in foreign countries .. . . •..• .. •..• .. •
Ce rtifl od and offlcers' checks, e tc . •••. ..• . .•
2,901,691
107,490
22 6, 276
1,031,198
16,449
67,536
2,973,959
2 10,460
168,391
97 2,420
15,965
71 ,922
2,918,342
68,096
177,966
1,006,305
16,934
54,956
Total demand de posits .... . ..... .. .... .
4,350,640
Tim e d e posits
Ind ividuals, partnership s, and corporations • .••
Unite d States Gove rnm e nt •• •• .... . •.• •• . •
Postal saving s .• •• .••.. • ....• •. .• • . •..••
States and politico I subd ivisions . •. . .• • • .. ••
Banks in the U. S. and fo reign countries • • . •• .
- - -
1,055,898
6,25 5
421
168,941
7,484
1,053,581
6,255
421
169,510
7,453
1,671,530
1,75 4,135
49 2,356
467,54 4
2,218
50,500
547,2 69
188,087
469,57 1
464,144
1,789
48,262
569,909
194,333
LIABILITIES AND CAPITAL ACCOUNTS
De mand d e posits
Individuals, pa rtne rship s, and corporatio ns . •.•
Unite d States Governm ent . . . . •.....•. ....
States and political subd ivisions .. . . • .• • . . • .
Banks In the Unite d States .... . .. . .. ... . . . .
Total time deposits ..... . . . .. ...... . . . .
1,238,999
Total de posits .... . . .. .. .. . .. . .... . .
Capital accounts •.• ••..• . . • ••... . . . •.• .• . .
5,589,639
97,764
108,913
54 2,817
TOTAL LlA81L1T1ES AND CAPITAL ACCOUNTS
6,339,133
Bills payable, re d iscounts, e tc .••••. • • ..•.••. .
All othe r liabilities . . . ..... . •• . •. .. • .. . .....
NOTE . _
4,4 13,117
-
4,242,599
1,054,242
7,480
421
224,015
6,691
--1,237,220
1,29 2,849
76,822
87,019
536,040
5,535,448
50,600
104,117
496,188
-5,650,337
~
Septe mb er
1959
RES ERVE CITY BANKS
Rese rve balances •••• .. •••. .. • . • .•
Re qui re d reserves • • .. •• . .• •..•• . •
EKcess rese rves •••••••• . • . .•••..•
Borrowing s . • •.••••••• • ••. . ••••.•
Free reserves ••. • . •••••• •••. ••• . •
$549,249
5 45,675
3,574
22,143
-18,569
$556,318
54 9,964
6,354
9,574
- 3,2 20
447,4 38
408, 144
39,2 94
18,913
20,381
444,820
405,34 8
39,472
2 1,868
17,604
4 36, 191
391,307
44,884
7,162
37,72 2
997,778
951,343
46,435
45,335
1,100
994,069
951 ,0 23
43,046
44,011
- 965
992,509
94 1,271
51,238
16,736
34,502
COUNTRY BANKS
Rese rv e balances ••• . • . . .•. .• ..•. •
Re qui re d reserves ••. •• •. •..• •. .•.
EKce ss reserves ••••• •••• •.• . . • •. •
Borrowings ••• .•• .. ••• • • •.• • . • •. .
Free rese rves ... •••.• ..•••• •• • •• •
-
6,186,353
Effective July 1, 1959, this series wa s rev ised. Th e revised form includes
se ve ra l new ite ms, th o most important of which is loons to flnancial in stitution s,
prev iously re porte d a ga inst othe r loon cate gori es . Com parabl e year-earli e r flg ure s
for th e new ite ms will be sho wn whe n th ey become a vailabl e.
weekly reporting banks gained demand funds from
correspondent banks and state and local govermnents.
Total demand deposits declined $62.5 million, reaching
a level 2.5 percent above the year-earlier amount. Time
deposits, which had decreased persistently in earlier
months, showed a small 4-week increase of $1.8 million, Virtually all of the gain in time accounts repre-
Rese rve balances • • • • •. •. . • . .. • •• •
Re quire d rese rves •• • .. • .. •• . •.•••
EKeess rese rves • • . •• . • • . . •••• .. • •
Borrowings •• • . ••.. • .••••• •. . ••.•
Free reserves • • .• • .••.. • . .• . •.•••
October
1958
$550,340
5 43,199
7,141
26,4 22
- 19,281
MEMBER 8ANKS
6,998
231,821
2,981,013
50, 299
---
Octob er
1959
Ite m
sented an increase in the deposits of individuals and
businesses.
The reserve positions of member banks in the District
changed little from September to October . Average
reserve balances rose slightly during October, and
required reserves showed a nominal increase. Average
daily borrowings from -the Federal Reserve Bank , at
$45 .3 million, were approximately the same as the
September level. Divergent movements in the reserve
positions of country banks and reserve city banks
occurred during the month, even though aggregate
measures of bank reserve positions showed little change.
Country banks gained reserves and reduced their borrowings from the Reserve Bank, while reserve drains
caused reserve city banks to resort to increased borrowings during October.
COND ITION OF THE FEDERAL RESERVE BANK OF DALLAS
(In thousands of dollars)
Item
Nov. 18,
1959
Total gold ce rtiflcafe re serves •• • ••••••.. •••• $ 769,290
Discounts for me mber banks ••.•••.• • •• • • • • •
10,750
Othe r discounts and advances •••••••••.•.••
348
U. S. Gove rnm ent securities •••••.. • •.••. •• ••
1,060,678
1,071,776
Total e a rning a sse ts •• •• • •• •. ••• • • • • •••. • •
Me mber bank rese rve d oposits • ••• • •. • •• ••••
999,625
Fo de ral Roserve note s in actual ci rculation • ••• •
807,210
Oct. 21,
1959
Nov. 19,
1958
$ 70 1,895
24,235
296
1,052,293
1,076,824
950,849
803,509
$ 751 ,2 54
22,600
68
994,971
1,017,639
973,471
773,634
Earning assets of the Federal Reserve Bank of Dallas
declined $5.0 million in the 4 weeks ended November
18. The Bank's holdings of Government securities
increased moderately, but the gain in this category was
more than offset by a decline in discounts for member
banks. Gold certificate reserves of the Bank rose $67.4
million during the 4-week period, reaching a level
slightly higher than the year-earlier amount. Seasonal
BUSINESS REVIEW
I
influences on currency movements were apparent in
late October and early November, causing the Dallas
Bank's Federal Reserve notes in circulation to expand
an additional $3.7 million.
NATURAL GAS: MARKETED PRODUCTION
(In millions of cubic feo t)
Second quarter
first quarter
Area
1959
1959
Second quarter
1958
louisiana . ................. .
573,000
165,400
165,800
1,336,300
643,400
187,400
177,700
1,416,400
480,200
168,800
176,600
1,256,200
Mexico ............ . ... .
Crude oil production in the New
Oklahoma •..... ..... ...... .
Eleventh District averaged only Texas ..................... .
2,424,900
2,0 81,800
Total .. .. . .. . . . . . . . . . . . . . .
2,240,500
2,885,000 barrels daily during
SOURCE , Uniled Siaies Bureau of Mines.
the first part of November, or
7 percent lower than a year ago.
November marked the fifth consecutive month that below the comparable period last year. The year-toTexas producing schedules were set at 9 days, and the year loss in demand was particularly severe for residual
State's crude oil production averaged 224,000 barrels and distillate fuel oils, which had been most affected by
below a year earlier - contrasted with a 127,000 the steel strike.
barrel-per-day increase for the rest of the Nation. NevDespite a slight decline in the first half of November,
ertheless, daily average production in the District rose stocks of major refined products continue to exceed
1 percent from October to November because of the industry requirements. Stocks of the four major products
shorter month and the expansion of new-discovery totaled 446,002,000 barrels on November 13, comallowables. Despite the comparatively low level of Dis- pared with 433,110,000 barrels a year earlier. Howtrict production, crude oil remains in good supply in ever, additions to stocks of distillate fuel oils accounted
the Southwest and the Nation. Total stocks of crude for much of the total year-to-year increase in refined
oil in the United States amounted to 253,948,000 bar- products stocks. The cold weather which prevailed over
rels on November 14, or 1 percent under a year ago. much of the Nation in the first half of November signifiImports of crude oil declined rather sharply in Octo- cantly strengthened demand for heating oils and, thus,
ber and early November and averaged slightly lower improved prices. Nevertheless, the petroleum industry
than in the comparable period last year. Imports of remains burdened with mounting gasoline stocks, and
refined products rose moderately in the 5 weeks ended pressure on wholesale and retail gasoline prices
November 13 but remained 17 percent below a year continues.
ago. Total imports of crude oil and refined products
Crude oil production in the District will show a
averaged 1,567,000 barrels, compared with 1,705,000
marked
gain in December. In response to modest imbarrels a year earlier.
provement in the level of refined products stocks and
District crude runs to refinery stills advanced 5 per- higher United States Bureau of Mines and industry
cent in the first half of November to average 2,180,000 estimates of crude oil demand, the Texas allowable
barrels daily. However, at the current level, District producing schedule in December has been increased
refinery output was slightly lower than a year ago. to 10 days. Crude oil output in Texas is expected to
Although a prolonged strike has depressed production average nearly 6 percent greater than in November
at a major Texas City refinery, refined products have but 8 percent lower than in December 1958. Although
been in persistent surplus on the Gulf Coast for some December crude oil production allowables in Louisiana
time. Total United States refinery production in the will remain at the November level, southeastern New
first part of November rose 2 percent but averaged less Mexico output should rise about 3 percent.
than 1 percent higher than a year earlier.
Employment of nonfarm workers
Although the new supply of refined products inin the District states reflected
creased slightly during October and early November,
another small seasonal rise of
sales rose over 4 percent seasonally. Colder weather
3,900 workers to reach an Octobrought sharp seasonal gains in demand for kerosene
ber total of 4,305 ,900. Further
and distillate fuel oils, and the resumption of steel pro- seasonal gains in government and trade employment
duction recently has stimulated demand for residual were the major factors in the October rise, while confuel oil. Nevertheless, demand for major products in struction registered the largest decline. Manufacturing
the 5 weeks ended November 13 averaged 3 percent and mining employment continued to be depressed
I
BUSINESS REVIEW
NONAGRICULTURAL EMPLOYMENT
Five Southwestern States'
Percent change
Oct. 1959 from
Numb er of persons
October
195ge
Type of employment
Total nonagricultural
wage and salary worke rs ..
1959
October
1958r
Sopt.
1959
Oct.
1958
4,305,900
773,100
3,532,800
244,000
310,300
4,302,000
776,900
3,525,100
248,200
320,600
4,258,300
763,100
3,495,200
247,600
309,600
0.1
-.5
.2
-1.7
-3.2
1.1
1.3
1.1
-1.5
.2
398,000
Trade .....•.......... 1,057,800
191 ,100
Finance •• ••• . •••.••• • •
508,500
Service ...... . . .. .. ...
823,100
Goyernm ent • .....• .. .•
399,100
1,051,700
191,400
507,700
806,400
398,400
1,040,500
187,100
502,700
809,300
-.3
.6
-.2
.2
2.1
-.1
1.7
2.1
1.2
1.7
Manufacturing ...••.•....
Nonmanufacturing ........
Mining •••..... . . . ... .
Construction • .•.••• . •.•
Transportation and
public utilitie s••......
I
September
Arizona, loui siana, New Mexico, Oklahoma, and Texas .
0-
Est imat ed.
r -
Revis ed.
SOURCES ,
'Stote e mployme nt age ncie •.
Federal Reserve Ban k of 00110 •.
INDUSTRIAL PRODUCTION
(Seo. onally adiu.ted indexe., 1947·49
Area and typ e of Index
TEXAS
Total Industrial production • . ..
Total manufactures ... .•... .
Durable manufactures ....• . •
Nondurable manufactures• . ..
Minorals . ........ . .... ....
UNITED STATES
Total industrial production •.. •
Tota l manufactures •• ..•... . ,
Durable manufactures . ..... .
Nondurable manufacture s• •.•
Minerals . .•.. ... .... . .... .
p -
r -
= 100)
Octobe r
1959p
September
1959
August
1959
October
1958
169
207
244
190
132
170
210
249
192
132
170
2 10
248
192
131r
165
195r
22 4r
181r
136r
148
151
157
146
117
149
152
158
147
116
149
152
158
146
117
138
140
146
134
122
Pre liminary.
Revised .
SOURCES , Board of Gove rnors of the Fede ral Reserve Syste m.
Federal Ro.erve Bank of 00110 •.
by the copper strike, and factory employment also
remained depressed by the steel strike. The steel
strike suspension in early November will permit some
strengthening of manufacturing employment and activity, although secondary effects probably will continue
to have some impact for several weeks.
Texas unemployment showed a slight seasonal
decline of 600 workers to an October total of 146,900,
which is 4.1 percent of the civilian labor force in the
State. However, the number of claims for unemployment compensation in Texas in mid-November was up
2.5 percent from the mid-October level.
The Texas industrial production index for October
was down slightly from September, mainly because
of weakness in petroleum refining and curtailments
stemming from steel shortages. Major curtailments
included a complete shutdown in one a utomobile
assembly plant and reduced hours at another, both
in the Dallas-Fort Worth area. It should be noted, however, that the reduction in activity resulting from steel
shortages has been less than earlier expectations.
A decline in the value of military prime contracts
awarded in the District states - which in 1957 was
equal to one-fourth of total manufacturing value added
and one-half of all construction contracts awarded in
the region - probably was an important depressant on
employment and production trends in early 1959. However, these awards rose 28 percent from the preceding
quarter to reach about $485 million during the second
quarter. The year-to-year comparison still showed a
24-percent decline, but this was an improvement compared with the year-to-year loss of 31 percent registered
in the first quarter. Defense orders to District firms
during the past few weeks include contracts totaling
nearly $25 million to Dallas aircraft manufacturers.
Construction contracts awarded in the District states
reflected a further decrease in September to a level
7 percent below August and 4 percent under a year
earlier. Residential building accounted for the largest
month-to-month decline, but "all other" construction
also decreased . Uncertainty of steel deliveries reportedly
is causing some deferment of nonresidential projects.
The number of FHA applications for proposed residential construction in the District states increased' about
500 units to a level of over 4,900 in September, as
against a slight decline in the Nation. Interest rates on
conventional first mortgages continued to rise, reaching
an average of 6.1 percent in the region on October 1.
Major nonresidential building contracts awarded during September and October included $11 million for
an office and bank building in Fort Worth, $7.9 million
for a Federal office building in Houston, and $6.5 million for a chemical plant near Minden, Louisiana.
BUSINESS REVIEW
I
CONDITION STATISTICS OF ALL MEMBER BANKS
BANK DEBITS, END-OF-MONTH DEPOSITS
AND ANNUAL RATE OF TURNOVER OF DEPOSITS
Eleventh Federal Reserve District
(Dollar amounts In thousands)
(In millions of dollars)
Debits to demand
deposit accounts l
Demand deposits l
Percentage
change from
October
1959
AreeJ
ARIZONA
Tucson ••• ••• •• • • •• •• $
LOUISIANA
Monroe .• •• . .. . •••• •
Shreveport ••••••.•.•
NEW MEXICO
Roswell .............
TEXAS
Abilene . .. ..... .....
Amarillo ...•.••....•
Austin .. . . .• ...• • ..•
Beaumont •••••••••••
Corpul Chrllti ..•• ••• •
Corsicana •••..... •. .
Dallas .... .. .... ....
EI Paso • • •...•••••••
Fort Worth ..........
Galveston •. ........ .
Houston ••••••••••••
Laredo . ••.•••••.•.•
Lubbock ••.•.••..•.•
Port Arthur ••.••••• • .
San Angelo .........
San Antonio •... • . •..
Texarkana' .........
Tyler ...............
Waco ..............
Wichita Falls ••••••••
Sept. Oct.
1959 1958
Annual rate of turnover
ASSETS
Balanc es with banks in foreign countries e ....
Co sh items in proc ess of coll ec tion ..... . • ..
Other ass ets e •. .. ....... ... . .. .•.......
$ 4,358
2,698
782
975
165
1,045
2
451
264
TOTAL ASSETse ................... ..
11,066
10,974
10,740
1,112
6,709
2,098
1,130
6,645
2,113
1,151
6,480
2,097
Borrowlng se .......................... .
Other liabiliti es e ... .. . . .......•........
Totol capital accounts e . ..... ...•. .. ..•. .
Total deposits ...................... .
9,919
105
116
926
9,888
72
96
918
9,728
42
110
860
TOTAL LIA8Il1T1ES AND CAPITALe ..••..
11 ,066
10,974
10,740
Loans and discounts. •. ......... ..... ....
United Stat es Governm ent obligations ..... .
Other sec uriti es .................•...•..
Rese rves with Federal Reserve Bank ....... .
Ca sh in vault e .. ..... .. .. . .. . ......... .
8alances with bonks in the United States •...
9
$ 140,729
20.3
20.2
22.7
80,974
320,623
5
6
9
9
53,036
189,254
18.6
20.3
17.8
19.0
17.4
20.0
43,497
15
16
30,819
17.3
15.2
15.5
LIABILITIES AND CAPITAL
100,274
-1
229,189
1
209,839
4
157,649
-3
192,763
-2
18,287
6
2,641,263
3
378,609
14
774,363
-1
93,820
0
2,557,524
0
27,469
5
229,755
25
68,547
13
56,753
-2
606,715
1
23,223
10
80,094 -10
125,632
8
120,574
-1
2
7
6
7
5
3
-9
10
18
0
-1
5
4
14
5
-1
8
9
-7
21
2
7
64,371
117,911
150,696
98,952
111,027
20,463
1,147,623
170,342
372,943
60,955
1,245,190
22,306
110,037
42,749
45,085
368,095
15,797
60,410
70,106
104,541
$4,8 13,437
18.7
23.6
17.2
19.0
20.8
10.8
27.7
27.1
24.8
18.2
24.8
15.0
25.6
19.3
14.9
19.2
18.1
16.1
22.0
13.9
23.4
19.1
23.3
16.6
19.6
21.0
10.3
27.4
23.8
24.8
17.5
25.1
14.5
20.4
17.2
15.1
18.4
16.4
17.6
20.6
14.2
23.0
18.2
22.0
19.4
17.3
19.3
10.9
26.0
24.6
24.8
17.8
24.2
14.3
22.7
17.2
16.0
17.2
15.1
17.0
18.4
13.1
De mond deposits of banks ...... •. . .• .. ••
Other demand deposits ..... .. . .. , ... . .. .
Tim e deposits ••........•.......• .. .... .
e-
Estimated.
GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
Eleventh Federal Reserve Di stri ct
(Averages of daily figures. In millions of dollars)
22.4
Deposits of Individ ual s, partnerships, and corporations and of states and political
subdivisions .
!! These flgure:o include only two banks in Texarkana, Texas. Total debits for all bonks
in Texarkana, Texas-Arkansas, including ono bank located in the Eighth Di strict,
GROSS DEMAND DEPOSITS
1
amounted to $52,537,000 lor the month of October 1959.
VALUE OF CONSTRUCTION CONTRACTS AWARDED
(In thousands of dollars)
September
1959
August
1959
Date
Total
Reserve
city bonks
1957, Octob er...
1958, October...
1959, Jun e ......
July .... . .
$7,506
7,615
7,678
7,662
7,643
7,779
7,782
$3,593
3,744
3,771
3,760
3,770
3,858
3,820
August •...
September.
January-September
September - - - - - - - - - 1958
1959
1958
October...
FIVE SOUTHWESTERN
STATESI .......... $ 296,575 $ 318,949 $ 307,949 $ 3,082,205 $ 3,091,293
146,562
163,960
148,916
10467,504
1,264,141
Residential .•.•••••
154,989
1,614,701
150,013
159,033
All other ..........
1,827,152
UNITED STATES ...... 3,058,055 3,056,777 3,215,919 28,605,092 26,985,8 13
1,542,125 1,460,270 13,572,701 10,945,492
ResidentiaL . .• .••• 1,465,957
All other .......... 1,592,098 1,514,652 1,755,649 15,032,391 16,040,321
1
SOURCES,
2,858.2
2,493.4
460.2
1,094.4
132.2
110.0
696.6
251.0
113.8
3,965.8
6,824.0
3,058.1
2,701.4
513.5
1,183.9
154.0
105.4
744.6
245.8
110.9
3,919.4
6,977.5
BUSINESS REVIEW
14
$ 1,650
2,105
2,177
2,159
2,125
2,113
2,099
$ 887
1,149
1,135
1,122
1,099
1,087
1,078
$ 763
956
1,042
1,037
1,026
1,026
1,021
September
1959
- 8.4
-8.9
-.3
-2.4
-2.0
-2.0
-2.2
1.0
-.5
37.3
28.9
Octobe r
1958
-208.3
-216.9
-53.6
-91.9
-23.8
2.6
-50.2
6.2
2.4
83.7
-124.6
Country
Oct. 1959
from
Oct.
1959
10 mos.
1959
845
6,949
571
4,796
1,597
23,784
168
292
290
325
65
2,094
481
807
125
1,282
263
183
1,332
208
187
2,286
3,227
3,217
3,643
836
22,613
6,191
8,121
1,168
14,858
3,360
1,931
14,555
2,3 15
1,839
1,261
2,82 1
5,070
3,58 2
788
11,242
4,891
4,275
229
31,315
4,693
577
3,416
3,120
1,080
24,208
31,802
51,388
19,001
17,628
148,0 16
55,950
49,737
3,524
190,704
50,219
8,819
52,637
15,490
12,643
Total-17 cities .. 9,518
101,905
$84,373 $789,263
Tucson ••••....
Estimated from American Petroleum Inltitute weekly reports.
o United States Bureau of Mines.
1
banks
$3,913
3,871
3,907
3,902
3,873
3,921
3,962
Reserve
Oct.
1959
Area
Change from
ELEVENTH DiSTRiCT •••.•••• 2,849.8
Texas •••• .•.. • •••• •••• • 2,484.5
459.9
Gulf Coast ••.•••.••.••
West Texas ...•..•..•• 1,092.0
East Texas {proper) •••••
130.2
108.0
Panhandle .. . ..... ....
694.4
Rest of State ...... ....
252.0
Southeastern New Mexico ••
113.3
Northern Louisiana •.•• .•••
OUTSIDE ELEVENTH DISTRICT. 4,003.1
UNITED STATES ...... ... ... 6,852.9
city banks
Percentage change
ARIZONA
(In thousands of barrels)
October
1958'
Total
NUM8ER
CRUDE OIL: DAILY AVERAGE PRODUCTION
September
1959 1
banks
VALUATION (Dollar amounts in thousands)
Arizona, Louisiana, New Mexico, Oklahoma , and Texas.
October
1959 1
TIME DEPOSITS
Country
BUILDING PERMITS
SOURCE, F. W. Dodge Curporation.
Area
Oct. 29,
1958
$ 4,731
2,468
839
891
146
1,032
3
569
295
Oct. Sept. Oct.
1959 1959 1958
5
Sept.30,
1959
$ 4,743
2,562
845
944
150
1,016
3
499
304
October 31,
1959
227,211
Total-24 cities ••.••.•• $9,364,647
Area and type
Oct. 28,
1959
Item
LOUISIANA
Shreveport ••.•
TEXAS
Abilene ..•.•..
Amarillo .•... •
Austin ....... .
Beaumont ... . .
Corpus Christi ..
Dallas....... ,
EI Paso ...... .
Fort Worth .•..
Galveston ....•
Hou ston ..... .
Lubbock ..... .
Port Arthur .. .•
Son Antonio ...
Waco ••.. ....
Wichita Falls •.
10 mos.
1959
$ 4,416 $ 33,713
- - - - - 1 0 mos. 1959
Sept. Oct.
camp. with
1959 1958 10 mo •. 1958
-10
468
158
- 16 -28
-12
-36
49
-30
147
-48
- 14
-36
31
-9
88
53
-38
-49
244
30
-39
32
41
116
-38
-2
-20
-26
-39
57
22
-28
-24
266
-49
33
35
28
7
-11
12
0
8
9
-2
42
_4
2
18
58
14
21
11
ciJl1l1ual CJ2eport
FEDERAL RESERVE BANK OF DALLAS
1959
To the Member Banks in the
Eleventh Federal Reserve District:
The Statement of Condition and the Earnings and
Expenses of the Federal Reserve Bank of Dallas for the year
1959, with comparative figures for 1958, are shown herein.
A review of economic and financial developments in the
Nation and the District during 1959 is being presented in
the January 1960 Annual Report Issue of the Business Review
of this Bank.
Additional copies of these publications may be obtained
upon request to the Research Department, Federal Reserve
Bank of Dallas, 400 South Akard Street, Dallas 2, Texas.
Sincerely yours,
WATROUS
President
H.
IRONS
Statement
01
eondition
Dec. 31, 1959
ASSETS
Gold certificate account
Redemption fund for Federal Reserve notes
Dec. 31, 1958
. $ 713,196,271 .55
31,036,856.17
$ 721,519,040.41
29,844,811.17
744,233,127.72
33,442,100 .00
16,519,287.39
8,910,000 .00
751,363,851.58
28,332,800.00
14,687,218.53
1,680,800.00
104,007,000 .00
419,376,000.00
439,465,000.00
99,137,000.00
88,152,000.00
730,529,000.00
112,325,000.00
97,292,000.00
1,061 ,985,000.00
1,028,298,000.00
1,070,895,000.00
748.48
294,453,959.80
11,338,918.76
10,599,025.81
1,029,978,800.00
754.79
242,746,905 .33
7,786,446.96
5,917,036.29
2,181,482,167.96
2,080,813,813.48
815,894,820.00
798,612,775.00
973,362,268.70
44, 230,629 .95
18,096,000.00
11,902,615.30
969,769,135.15
30,629,942 .35
12,220,000.00
2,778,528 .67
Total deposits.
Deferred availability cash items.
Other liabilities .
1,047,591,513.95
249,555,498.97
959,280.32
1,015,397,606.17
196,450;758.56
709,588.74
TOTAL LIABILITIES
2,114,001,113.24
2,011,170,728.47
22,322,450.00
44, 644,900.00
513,704.72
20,683,700.00
43,436,299.36
5,523 ,085.65
67,481,054.72
69,643,085 .01
TOTAL LIABILITIES AND CAPITAL ACCOUNTS $2,181,482,167.96
$2,080,8.13,813.48
Total gold certificate reserves.
Federal Reserve notes of other Banks
Other cash .
Discounts and advances .
U. S. Government securities
Bills
Certificates
Notes.
Bonds
Total U. S. Government securities .
Total loans and securities .
Due from foreign banks .
Cash items in process of collection.
Bank premises .
Other assets.
TOTAL ASSETS
LIABILITIES
Federal Reserve notes in actual circulation
Deposits
Member bank - reserve accounts
U. S. Treasurer - general account
Foreign
Other.
CAPITAL ACCOUNTS
Capital paid in .
Surplus .
Other capital accounts
TOTAL CAPITAL ACCOUNTS
1959
1958
CURRENT EARNINGS
$ 1,281,935.17
$
34,008,358.32
16,251.49
168,848.30
28,717,892 .12
15,805.73
35,306,544.98
28,902,546.15
7,467,476.47
7,249,300.70
Assessment for expenses of Board of Governors
337,600 .00
308,700.00
Federal Reserve currency
Original cost, including shipping charges.
300,509.00
25,401.00
181,027.00
26,161.00
8,130,986.47
7,765,188.70
1,130,417.00
1,137,382.38
7,000,569.47
6,627,806.32
28,305,975.51
22,274,739.83
7,509.34
5,002,666.30
6,490.32
856.80
63,295.09
5,011,032.44
69,785.41
Discounts and advances.
U. S. Government securities.
A" other
TOTAL CURRENT EARNINGS
CURRENT EXPENSES
Current operating expenses.
Cost of redemption, including shipping charges .
Total
less reimbursement for certain
fiscal agency and other expenses
NET EXPENSES
PROFIT AND lOSS
Current net earnings .
Additions to current net earnings
Profit on sales of U. S. Government securities (net)
Transferred from reserves for contingencies (net)
A" other
Total additions
Deductions from current net earnings
16,869.99
Reserves for contingencies
4,408.52
855.33
4,408.52
17,725.32
Net additions .
Net earnings before payments to U. S. Treasury
5,006,623.92
33,312,599.43
52,060.09
22,326,799.92
Dividends paid
1,307,562.25
30,796,436.54
1,196,810.00
18,620,110.49
1,208,600.64
2,509,879.43
A" other
Total deductions .
Paid U. S. Treasury (interest on F. R. notes) .
Transferred to surplus
FEDERAL RESERVE BANK OF DALLAS
President
First Vice President
WATROUS H. IRONS,
HARRY A. SHUFORD,
Vice President
JAMES L. CAUTHEN, V ice President
J. L. COOK, V ice President
T. A. HARDIN, V ice President
CA RL H. MOOR E, Vice President
G. R. MURFF, V ice President
JAMES A. PARKER, V ice President
T. W. PLANT, V ice President and Cashier
L. G. PONDROM, Vice President
MORGAN H. RICE, Vice President and
Secretary of th e Board
':' CHARLS E. WALKER, Vice President and
Economic Adviser
General A uditor
General Counsel and
Assistant Secretary of th e Board
HOWARD CARRITHERS,
ARTHUR H. LANG,
GEORGE F. RUDY,
ROD ERT H. BOYKIN,
Assistant Counsel
W. M. PRITCHETT,
Assistant Vice President
THOMAS R . SULLIVAN,
Assistant V ice President
Roy E. BOHNE,
Assistant Cashier
Assistant Cashier
HERMAN W. KILMAN,
Assistant Cashier
E.
EMMETT
A.
H. B ERG,
Assistant Cashier
Director of R esearch
THAXTON , JR.,
PHILIP E . COLDWELL,
JAMES
O.
RUSSELL,
Chief Examiner
EL PASO BRANCH
HOWARD CARRITHERS,
FREDRIC W. REED,
Cashier
Vice Presiden.t in Charge
T. C. ARNOLD, Assistant Cashier
HOUSTON BRANCH
J.
L. COOK, Vice President in Charge
B. J. TROY,
W. C. HARTUNG,
Cashier
Assistant Cashier
RASCO R . STORY,
Assistant Cashier
SAN ANTONIO BRANCH
CARL H. MOORE,
V ice President in Charge
Cashier
A. E . MUNDT,
ALVIN E. RUSSELL,
· On leave of absence.
Assistant Cashier
FREDERICK J. SCHMID,
Assistant Cashier
'j)irector~
FEDERAL RESERVE BANK OF DAllAS
ROBERT J. SMITH
(Chairman and Federal Reserve Agent), Pres/delli, Piolleer H ydrotex Industries, IlIc ..
Dallas, Texas
LAMAR FLEMING, JR.
(Deputy Chairman), Cllairman 0/ tile Board,
Am/ersoll, Clay tOil alld COmpml)', iIlC., HouStOIl, Texas
ROB ERT O. ANDERSON, President, Hondo Oil & Gas COmIJaIlY, Roswell, New Mexico
JOHN M. GRIFFITH, Presidelll, Tile City Natiollal Balik of Taylor, Taylor, Texas
D. A. HOLCY, CI/{/irman o/Ille Board, LOlle Star Gas COlllpallY, Dallas, Texas
1. EDD MCLAUGHLIN, Presidelll, Security State Balik & Trust COmpall)', Ralls, Texas
J. B. PERRY, JR., Presidelll alld Gelleral Mallager, Perry Brotllers, IIIC., Lu/kin, Texas
SAM D. YOUNG, Presidellt, E/ Paso Natiollal Bank, EI Paso, Texas
H. B. ZACHRY, Presidellt, H. B. Zacllry COIIIIJaIlY, Sail Alltonio, Texas
El PASO BRANCH
JOHN P. BUTLER, Presidellt, Tile First Natiolla/ Bank 0/ Midlalld, Mldlalld, Texas
FLOYD CHILDRESS, Vice Preside III, Tlte First Natlollal Balik 0/ Roswell, Roswell, New Mexico
ROGER B. CORBETT, Presidelll, New Mexico State Ulliversity, Ulliversity Park, New Mexico
DYSART E. HOLCOMB, Dlreclor 0/ Researcll, EI Paso Natl/ral Gas COlllpallY, E I Paso, Texas
JOSEPH F. IRVIN, Pres/dellI, Soutl,west Natio/wl Bank 0/ EI Paso, EI Paso, Texas
WILLIAM R. MATHEWS, Editor alld Publisher, "Tile Arizolla Daily Slar," TUCSOII, A rizona
CHARLES B. PERRY, Presidelll, First State Bank, Odessa, Texas
HOUSTON BRANCH
W. B. CALLAN, Presidellt, The Victoria Natiollal Balik, Victoria, Texas
MARVIN K. COLLIE, Presidellt, Tile Natiollal Balik 0/ COlllmerce 0/ Houston, HOI/stOll , T exas
A. E. CUOLTPP, Vice President alld Director, L I//kill Foulldry & Macllil," COlllpallY, LI/fkin, Texas
JOHN C. FLANAGAN, Vice Presidellt alld Gelleral Mmwger, Texas Distribl/tioll Divisioll,
United Gas Corporalioll~ HOll S/ O II , Texas
M. M. GALLOWAY, Presidellt, First Capitol Bank, West Colulllbia, Texas
1. W. McLEAN, Presidellt, Texas NatiOllal Balik 0/ Houston , Houston, Texas
TYRUS R. TIMM, Head, D epartlllellt 0/ Agricl/ltural Ecollolllics alld Sociology, A. & M. College 0/ Texas,
College Statloll, Texas
SAN ANTONIO BRANCH
J. W. BERETTA, Melllber, Board 0/ Directors, First Natiollal Bank of Sm1 Alltonio, Sail A ntollio, T exas
BURTON DUNN, Cilairlllall 0/ til e Execl/tive COllllllittee, Corpl/s Cllristi State Natiollal Balik, Corpus Cltr/sti, T exas
DONALD D. JAMES, Vice Presidelll, The A ustill Natiollal Balik, A ustin, Texas
JOHN R. STOCKTON, Professor 0/ BlIsiness Statistics, Ti,e University of T exas, A I/stin , Texas
DWIGHT D. TAYLOR, President, Pall Americall State Bank, Bro wllsville, Texas
ALEX R. THOMAS, Vice Presldell/, Geo. C. Vaugllall & SOliS, San A II/onio, T exas
HAROLD VAGTBORG, Chairmall 0/ ti, e Board, SOl/til west R esearclt Celller, Sail A lltOllio, Texas
FEDERAL ADVISORY COUNCil MEMBER
1. F.
BETTS, Presldellt, Tile Alllericall NatiOllal Balik 0/ Beal/Illont, Beal/Illoll t, Texas
BUSINESS
REVIEW
INDEX fOR THE YEAR 1959
GUIDE TO PAGE NUMBERS
The first number indicates the issue and the second number, the page of the issue. The issues a\'~ numbered from 1 to
12, beginning with January.
SPECIAL ARTICLES
"A Perspective of Recession and Recovery" .......................... 1: 1- 6
"Basic Metals Manufacturing in the District" ......... .. .. ........... 12: 1- 7
"Dallas" .. .... .................. ........ .... ......... ........... ......... .. ............... 5: 1-22
"Department Store Sales Sustained in 1958" ........................ 2:5- 6
"Economic Perspective at Midyear" ................. ..................... 8: 1- 6
"Fort Worth" ............. ....... ........... ..... ..... .......... .. ....... .......... .... 7:1-20
"Growth in Southwestern Banking" ......................... ........... .... 3: 1- 3
"Houston" ................ .. .......................... .. ...... .............. .. ... .. .... . 4: 1-20
" 1958 -
Agricultural Cornucopia" ............... ................ ... ...... 2: 1- 4
"Petroleum -
A Year of Adjustment" ........ ..... .. .... .............. . 3 :4- 6
"San Antonio" ......... ............. ......... .. ... .............. ............... ....... 6: 1-20
"Sources and Growth of Agricultural Credit" ..... ...... ..... .. ...... 11: 1- 6
"The Role of Pipelines in the Economy of the Southwest" ..... .10: 1- 7
"Trust Departments in the Southwest" .................................... 9: 1- 6
FEDERAL
RESERVE
DALLAS,
BANK
TEXAS
OF
DALLAS
FINANCE
AGRICULTURE
Conditions, monthly ..... l
:8-9; 2: 8-9; 3: 8-9; 4:22-23; 5 :24-25; 6 :22-23;
7:22-23; 8:8-9; 9:8-9; 10:9-11; 11:7.8-9; 12:9-10
Crops
Acreage. harvested ....... ... ..... ..... .. ... ....................... ... ........... ........ 3: 8
Barley .......... ....................... ............ .. 8:8.9; 9:9; 10:9; 11:9; 12:10
Cash receipts .... ...... ........ ... ................................................ ........ .5 :25
Citrus fruits ........... .... .......... .. ............. .. ................ .. ............ l:8; 11:9
Corn .. .. .......................... .. ............ ....... 8:8.9; 9:9; 10:9; 11:9; 12:10
Cotton ................ 1:9; 6:23; 8:8.9; 9:8.9; 10:9.10; 11:8.9; 12:9.10
Crop reporting districts of Texas ............................ ..... 9:9; 10:10
Flaxseed .......................................... .. 8:8.9; 9:9; 10:9; 11:9; 12:10
Hay .................................... .. .............. 8:8.9; 9:9; 10:9; 11:9; 12:10
Oats .............. ................................ .. ... 8:8.9; 9:9; 10:9; 11:9; 12:10
Onions ...... .. .. ... .. ....... ...... .... ....... ..... ................ ................ ............ 7 : 23
Banks and banking
Assets (See Condition statistics)
Conditions. monthly .... l:9-10; 2 :9-10; 3:9-10; 4:23-24; 5:25-26;
6:24-25; 7:23-25; 8:9-11; 9:9-11;
10: 11-12; 11 :9-10; 12: 10-12
Condition statistics
Federal Reserve Bank
of Dallas ........................... .... .l:10; 2:10; 3:10; 4:24; 5:26;
6:25; 7:25; 8:11; 9:11; 10:12; 11:10; 12:11
Member banks .... .... l:12; 2:12; 3:12; 4:27; 5:28; 6:28; 7:28;
8:14; 9:14; 10:15; 11:12; 12:14
WeekJy reporting member banks
in leading cities ........ l:9; 2:9; 3:9; 4:24; 5:25; 6:24; 7:25;
8:10; 9:10; 10:11; 11:9; 12:11
Debits. banks in 24 cities .... l:12; 2:10.12; 3:12; 4:27; 5:28; 6:28;
7:28; 8:14; 9:14; 10:15; 11:12; 12:14
Deposits
Annual rate of turnover (See Debits. banks in 24 cities)
Peanuts ............ ........................ .. ........ .... 8:8; 9:9; 10:9; 11:9; 12:10
End-of-month (See Debits. banks in 24 cities)
Pecans .................. ...................................... .. 9:9; 10:9; 11 :9; 12: 10
Gross demand. member banks ............ l:12; 2:12; 4:27; 5:28;
6:28; 7:28; 8:14; 9:14; 10:15; 11:12; 12:14
Potatoes ........................ 6:23; 7:23; 8:8.9; 9:9; 10:9; 11:9; 12:10
Member banks (See Condition statistics and Deposits.
Gross demand. member banks)
Rice ............ .... ......... .. .... ...... ............... 8:8.9; 9:9; 10:9; 11 :9; 12: 10
Rye ..... .. .............................................. .8:8; 9:9; 10:9; 11:9; 12:10
Time. member banks ........ l:12; 2:12; 4:27; 5:28; 6:28; 7:28;
8:14; 9:14; 10:15; 11:12; 12:14
Sorghums ..... ........................ .. ............. 8:8; 9:9; 10:9; 11:9; 12:10
Weekly reporting member banks in leading cities
(See Condition statistics)
Vegetables .. .......... .. ...... ................ l:8; 3:8; 4:23; 5:25; 6:23; 7:23
Wheat.. .. ...... 2:8; 5:24; 6:23; 7:22; 8:8.9; 9:9; 10:9; 11:9; 12:10
Income
(cash receipts from farm marketings) .................. 4:23; 5:25;
7:23; 10: 11
Investments (See Condition statistics)
Liabilities and capital (See Condition statistics)
Loans (See Condition statistics)
New member banks ........ ...... l:l0; 2:10; 5:26; 6:25; 9:10; 10:12
Government payments ..... ... ................................ .................. ... .4:23
Livestock and livestock products
New par banks ........ .. ........ .... .......... 3:10; 5:26; 7:25; 8:10; 9:10;
10:12; 11:10; 12:10
Cash receipts ........ .. ...... ...... .................. ... ............... ............. .... ... 5 :25
Rediscount rates .. .. .................. .... ... ...... ......... ..... .4:24; 7 :25; 10: 12
Cattle and calves .................... 3:9; 4:23; 7 :23; 9:9; 11:7; 12:9.10
Reserves and related items. member banks
Chickens and turkeys ................................. .. ............................ ... 3: 9
Reserve positions ........ l:l0; 2:9; 3:9; 4:24; 5:25; 6:24; 7:25;
8:9; 9:11; 10:12; 11:10; 12:11
Hogs .......... ... ...... .... .............. .... ........... ......... ... .. .............. .. ..... .. ... 3:9
See also Condition statistics
Horses and mules .......... .. ............ ............. .......... .... ................ .. ... 3:9
Sheep and goats .................................. ....... ..... .. ...... 3 :9; 4:23; 12: 10
Credit, real-estate
Discounts on FHA mortgages .. .. ... .. .1: 11; 2: 11; 4:26; 7:27; 8: 13
Interest rate ceiling on VA mortgages ..... .. .. ... ........................ 8: 13
Prices
Crop ..... ... ............. .......................... 5:25; 6:23; 7:23; 10:10; 12:10
Farm commodity .............. ..4:23; 5:25; 6:23; 7:23; 10:10; 12:10
Livestock ...................... .. ......... .. ........... ... .5:25; 7:23; 10:10; 12:10
Range and pasture conditions ..... 1:9;
2:9; 3:8; 4:23; 5:25; 6:23; 7:23;
8:9; 9:9; 10:10; 11:9; 12:10
GUIDE TO PAGE NUMBERS
The first number indicates the issue. and the second number. the page of the issue. The issues are numbered from 1 to
12. beginning with January.
Interest rates on conventional first mortgages .......... .. 8: 13; 12: 13
See also Banks and banking, Condition statistics.
Weekly reporting member banks in leading cities
Employment
(See GENERAL)
Special System publications
The Federal Funds Market - A Study by a
Federal Reserve System Commiltee ........ .. ...................... .. 7:24
Treasury-Federal Reserve Study of the
Government Securities Market ......... ........................ ......... 8: 11
Treasury finance ............... .... .................. .... .. .4:24;
8:9.11; 9: 11; 10: 12
Savings bonds .... ..... ........... ........................ ........ ............ .......... 10: 12
GENERAL
District summary ............. .. ......... 1:7;
Eleventh Federal Reserve 'Distrlct
Copper production .... .............. .......... ......................................... ... .... 8: 13
2:7; 3:7; 4:21; 5:23; 6:21; 7:21;
8:7; 9:7; 10:8; 11:7; 12:8
(map) .... ................ 7: 27; 9: 13; 10: 16
2: 11; 3: 11; 4:25-26 ; 5 :27; 6:26;
7:27; 8:12,13; 9:12; 10:13-14; 11:11; 12:13
Electric power production .................................. 6:27;
Industrial production .......... .. .. .. l:11;
2:11; 3:11; 4:26; 5:27; 6:26-27;
7:26,27; 8:13; 9:12; 10:14; 11:11; 12:13
Employment and unemployment .. 1 : 11;
Insured unemployment .............. .... .... ...... .. 3:1I; 5:27; 6:26; 7:27;
10:14; 11:11; 12:13
Income
8: 13; 9: 12; 10: 14
Employment (See GENERAL)
Manufacturing
Employment (See GENERAL)
Military orders .............................. .. 4:26; 6:27; 8:13; 9:12; 12:13
Military contract awards .... .................... .. 4:26; 6:27; 8: 13; 9: 12; 12: 13
Farm (See AGRICULTURE, Income)
Personal ..... ........ ...... .. ..... .. .... ............ ................... .5:27; 6:27; 9:13
New business formations .. ........ ........... ..... ..................... .... ..... 6:27;
8:13
OIL AND GAS
Prices
Conditions, monthly ...... 1 : 10-11;
Agricultural (See AGRICULTURE)
Petroleum products (See
OIL AND GAS, Crude oil and
reflned products)
2: 10-11; 3: 10-11; 4:24-25; 5 :26-27;
6:25-26; 7:25-26; 8: 12; 9: 11-12;
10: 12-13; 11 :7,10-11; 12: 12
Crude oil and reflned products
INDUSTRY
Aircraft .......... ...... .... ........... .. ...... .. .......... 4:26; ~:27;
8:13; 9:12; 12:13
Business failures .. ................ ... ....... .... .... ........... .. ............ .... .... ........... 8: 13
Conditions, monthly ............ 1:11;
2:11; 3:11; 4:25-26; 5:27; 6:26-27;
7 :26-27; 8: 12-13; 9 : 12-13; 10: 13-14; 11: 11; 12: 12-13
Construction
Crude runs to refinery stills .... 2: 11; 3: 10; 4:25; 5 :26; 6:25; 7 :26;
8:12;9:11; 10:13; 11:11; 12:12
Demand ............... ........ . l:10; 2:10; 3:10; 4:25; 5:26; 6:25; 7:25;
8:12; 9:11; 10:12-13; 11:10-11; 12:12
Imports ...................... .. ...... l:l0; 2:10,11; 3:10; 4:25; 5:26; 6:25;
7:26; 8:12; 9:11; 10:13; 12:12
Bank and office building ................... .......... .. ............... 9: 13; 12: 13
Mandatory import quotas .......... ..... ... 4:25; 7:26; 8: 12; 10: 13
Building materials .... .. ......... ....... ....... ... ......... ... ........ ..... .4:26; 6:27
Prices .. .... ............ .... .......... 2:10; 3:10; 4:25; 6:26; 7:25,26; 8:12;
9:11; 10:13; 11:11; 12:12
Building permits, 17 cities ... .. J : J 2; 2: 12; 3: J 2; 4:27; 5 :28; 6 :28;
7:28; 8:14; 9:14; 10:15; 11:12; 12:14
Cement plant. ....... ..... .. ..... .... ........... .............. ....... .. .... ... ..... .... .. 9: 13
Chemical plant.. ........ .... ..................... ............ .... .4:26; 5:27; J2:13
Commercial and industrial building .... .... ...... ........ ........ .. .... .. .. 4:26
Contracts awarded .. .. .. l:11,12; 2:12; 3:11,12; 4 :26,27; 5:27,28;
6:27,28; 7:27,28; 8:13,14; 9:13,14;
10:14,15; 11: 11,12; 12: 13,14
Copper mine and mill ...... .. ............ ................... .... .......... ... .... .. 9:13
E lectric generating plant...... ... .. ... .......... .. ...... ........... ........ ..... ..9: 13
Employment (See GENERAL)
Federal.. .... .. ........................ .... ....... ............................... 1: 11; 12: 13
Hotel ..... ...... ......... ..... .... ...... ..... ... ........... ....... ......................... ..6:27
Industxial building .. ................. ...... ..... .. ........ ......... ........... ... .... .4: 26
Iron mill ................ .. .... .. .......... ...... ... ...... ..................... ..... ...... .l1: 11
Production .. .... ........ 1 : 10-11,12; 2: 10,11,12; 3: 10,11,12; 4:25,27;
5:26,28; 6:25,26,28; 7:26,28; 8:12,14; 9:11 ,12,14;
10:13,15; 11:11,12; 12:12,14
Stocks ........... .... ............. l:10,11; 2:10,11; 3:10; 4:25; 5:26; 6:25;
7:26; 8:12; 9:11; 10:13; 11:11; 12:12
Drilling activity
Rotary rigs in operation ............ ....................... .................. ..... 6:26.
Well completions ...... ....... .............. ..... ..... ........... .. ......... .4:25; 6:26
Natural gas
"Memphis Decision" reversal. ........................ ......... .. .............. 1: 10
Pipeline construction .............................. ............... ........ .3: 11; 5 :27
Production ....... .. .. ...... ..... ................ .. ....... .3: 12; 5 :27; 9: 11; 12: 12
Sales ··· ····· .. ·.. ··· ·...... ·.. ...... .. ·..................................................... 8: 12
Wells ...... ... .. ... .... ......... .. ....................... .................................... 3: 11
TRADE
Manufacturing ........ ..... .......... ........................................ .. .. .... ... 3: 11
Nonresidential.. ...... .. ............. .... .. .... ...... ... 5:27; 7:27; 9:13; 10:14
Conditions, monthly .... 1:7-8;
Office building .......... .... .. .... .... .... .... ..... ...... .......... .. ........ .9: 13; 12: 13
Department stores
Pipeline .... .. ........... .. ............ ...... ....... ...... ........ ........... ........ ...... .5 :27
Processing plant.. ..... .. ............ .......... .............. .......... ....... 5:27; 8:13
Railroad ................................. .... .... ................................ .......... .. 1: 11
Residential.. .... .. ............ 1:12; 2:J2; 3:J2; 4 :27; 5:28; 6:28; 7:28;
8:14; 9:14; 10:15; 11:12; 12:13,14
Dwelling units proposed in FHA applications .... II: II; 12: 13
Mortgage credit (See FINANCE, Credit, real-estate)
Steel mill .............. ...... .............................................................. 11: 11
Tel ephone building ...... ............. ...... ......... ..................... ......... .. ll: 11
2:7,8; 3:7-8; 4:21-22; 5:23-24; 6:21-22;
7:21-22; 8:7-8; 9:7-8; 10:8-9; 11:7-8; 12:8-9
New orders ........ .......... .... l:8; 4:22; 5:24; 6:22; 10:9; 11:8; 12:9
Orders outstanding ............ l:8; 3:8; 4:22; 5:24; 6:22; 11:8; 12:9
Sales and stocks .... J :7.8; 2:7-8: 3 :7,8; 4:21-22; 5:23-24; 6:2 1-22;
7:21-22 ; 8:7-8; 9:7-8; 10:8-9; 11:8; 12:8-9
Employment (See GENERAL)
Furniture stores .................... .... ..... .. ....... l:8;
2:8; 3:8; 4:22; 5:24; 6:22
Household appliance stores .. .......... .. ..... . 1 :8;
2:8; 3:8; 4:22; 5:24; 6:22
New car registrallons ......... .......... ..... .. .. l:8;
2:8; 3:8; 4:22; 5:24; 6:22;
7:22; 8:8; JO:9; 11:8; 12:9
@FedFRASER