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BUSINESS REVIEW DECEMBER 1960 Vol. 45, No. 12 AGRICULTURE IN 1960 The 1960 peak in the harvesting of crops and marketing of livestock in the five southwestern states of Arizona, Louisiana New Mexico, Oklahoma, and Texas has passed, and preparation~ for a new season are well advanced. Estimates of this year's output of many important crop and livestock products point to a total southwestern agricultural output almost 5 percent larger than the all-time high achieved in 1959 and around one-fifth larger than the 1947-49 average. Lower average agricultural product prices, however, may place total farm income 4 or 5 percent below last year's levels. As would be expected in an area as large and diverse as the Southwest, the variation in output and income among different sections ranged from disappointing to exceptional. Weather was the most important single factor affecting total production, as well as the variation in output among different sections. Moisture conditions in most areas of the Southwest generally were favorable during the late summer and early fall of 1959, although portions of Arizona and New Mexico and the Trans-Pecos and southern areas of Texas did not receive significant precipitation until late spring. An early freeze in November 1959 was the forerunner of a series of cold, damp periods that blanketed much of the Southwest during the ensuing winter months. The winter was particularly severe on livestockmen because the damp, cold weather retarded growth of forage and made it necessary to feed livestock supplemental hay and concentrates for long periods. During the stimmer 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) and fall of this year, growing conditions were mixed. Relatively cool temperatures and intermittent rains resulted in fairly favorable range and pasture conditions but intensified the problems of insect and disease control. Total Crop Output Rises Part of the decline in the total acreage seeded probably resulted from the poor winter and spring weather conditions, which limited some plantings of oats and corn, particularly in eastern sections of the District. Probably a more important factor affecting seedings has been the Conservation Reserve Program. Around 755,000 acres of additional cropland in the Southwest were withdrawn from cultivation in 1960 as a result of new signups under the program; these accounted for about 12 percent of the new acreage contracted for in the Nation. Well over half of the new 1960 Conservation Reserve participation in the District PRODUCTION FIVE SOUTHWESTERN STATES WINTER WHEAT GRAIN SORGHUMS PEANUTS -25 .'ndlcat.d Nov.mb.r 0 PERCENT CHANGE, I. SOURCE: U. S. Oeportment of Agrlcultur • • I BUSINESS REVIEW 12:1960 +25 1960· FROM 1909 Five Southwestern Stotes' (In Ih ousonds of ocros) +50 Percent change Crop 1960 1959 Cotton ••• •.••..••...•. .. ... Sweet potatoes • ..• ..••...•.. Beans, dry edible •••••..••..• 8,790 2,274 9,813 3, 17 2 1,655 885 9,749 123 430 94 13 8,547 2,484 9,799 3,420 1,452 880 10,384 41 445 115 16 3 -8 0 -7 14 1 -6 200 -3 -18 - 19 Totol ••• •• . ••• . • . ..•..••.. 36,998 37,583 -2 Corn ••••••••••••••••••••••• Total crop production may exceed the 1959 level by around 5 percent, despite a reduction in planted acreages. The acreage planted to 11 major crops in the Southwest in 1960 totaled almost 37 million acres or 2 percent below the seeded acreage of the crops ~ 1959. These 11 crops account for approximately 85 percent of the cash income from crops in the five Eleventh District states. The major part of the decline in the acreage planted to these crops resulted from smaller see dings of grain sorghums, although significant decreases also occurred in the acreages of corn and oats. Cotton, barley, flaxseed, and rice were the only crops with higher planted acreages than last year. CROP PLANTED ACREAGE OF CROPS Wheot ....••...••..••...•.. Oats ••..................... 80rley .. ........ .. .. . ...... Rice ••••••••••••••••••••••• Sorghums ••••••••••••••••••• Flaxseed •..••• . ....•. .. .•• . Peanuts •••••••• • •••••••••••• - Arlzono, Louisiana, New Mexico, Oklahoma, and Texas. SOURCE, United Siole. Deportment of Agriculture. 1 states was in Texas - mainly in the dry-land areas of the High Plains, where wheat and grain sorghums are important crops. Since the beginning of the Conservation Reserve Program in 1956, almost 6.2 million acres of southwestern cropland have been taken out of cultivation, and about 96 percent of this acreage has been devoted to grassland uses. Inasmuch as the acreage devoted to major crops in 1960 was slightly below a year earlier, higher per acre yields for some of the more important crops accounted f?r most of the gain in total southwestern crop productIon. Cotton and corn are exceptions, however, as per acre yields are expected to average below 1959. Rice yields have been virtually unchanged, but yields have been higher for wheat, oats, barley, grain sorghums, and peanuts. Yields of crops seeded last fall for harvest this year reflected the favorable moisture conditions of the winter and spring. Winter wheat yields, at 24 bushels per acre, were 26 percent larger than in 1959 and were almost equal to the all-time high achieved in 1958. Wheat output this year increased more than one-third over last year's production and was double the 10-year (194958) average. The reduction in acreage planted to oats and the subsequent acreage abandonment because of freeze and green bug damage were offset by higher yields, so that oat production was virtually equal to that in 1959. Barley outturn rose as a result of advances in both acreage planted and yields. Among the 1960 spring-planted crops, cotton, grain sorghums, rice, peanuts, and corn were the most inlportant in the Southwest in terms of acreage and value. Acreage controls continued for cotton, peanuts, and rice. The planted acreages of grain sorghums, corn, and peanuts were below a year ago, while those for cotton and rice were slightly higher. As a result of the changes last year and 5 percent larger than the 10-year average. in acreages and yields for the major spring-planted Compared with 1959, the increases in expected outcrops, the indicated output of corn decreased signifi- turns of cotton in Arizona and Oklahoma would more cantly from 1959; production of rice and cotton may than offset the decreases indicated for Louisiana, New be slightly larger; and the outturn of grain sorghums Mexico, and Texas. In Texas the cotton crop in westand peanuts is expected to be moderately higher than ern sections was relatively good, while only a fair to poor outturn was realized in other areas of the State. last year. Total commercial vegetable production for both the fresh and the processed markets in the Southwest may be only slightly higher this year, but output of citrus fruits , peaches, pears, and pecans is likely to be considerably larger than in 1959. In terms of the utilization of southwestern crop acreage, cotton is third in importance, following grain sorghums and wheat; but in terms of value, cotton is the leading commodity, accounting for about one-half of the total cash income from crops in recent years. ~onsequently, cotton production and income. ~lay an Important part in determining over-all productlVlty and income trends in southwestern agriculture. The national acreage allotment for 1960-crop cotton was set at the minimum permitted by law. The portion of the national allotment for the District states amounted to about 8.7 million acres for both upland and extra-long staple cotton - not quite 30,000 acres below the 1959 allotment. The "Choice A" and "Choice B" programs in effect during 1959 were. in operation this year. Producers who selected the ChOIce B program were permitted to increase the acreage devoted to cotton by as much as 40 percent over the regular acreage allotment. Support for cotton pr~duced under Choice B, however, was 15 percent of panty below that for cotton produced under the regular, or Choice A, program. Over-All Livestock Production Increases The output of all livestock products in the Southwest advanced moderately this year, although divergent trends were evident for some types of production. The production of cattle, sheep, wool, mohair, and turkeys increased; while that o£ hogs, poultry, and eggs declined somewhat. Output of dairy products showed little change from the 1959 levels, although the shift toward greater fluid milk utilization continued. The number of all cattle and calves on farms and ranches was at a record high as of the first of this year in both the Southwest and the Nation, and inventories have continued to rise in both areas during 1960, the third consecutive year in which numbers have risen. In the District states, the number of all cattle on hand at the beginning of this year totaled 17,096,000 and was 8 percent above a year earlier - somewhat above the national increase. Southwestern milk cattle numbers rose only fractionally, but beef cattle inventories were one-tenth larger. Reflecting the increased size of the breeding herd, the calf crop in the Southwest during 1960 totaled slightly more than 7.7 million, or 5 percent more than a PRODUCTION OF LIVESTOCK AND LIVESTOCK PRODUCTS FIVE Approximately 662,000 acres of additional cotton acreage were provided to producers in the Southwest Who elected the Choice B option, or 55 percent of the Choice B acreage in the Nation and 150,000 acres more than the 1959 Choice B acreage in the Southwest. Election of the Choice B program increase~ th~ acreage available for planting cotton in all of the. DISt~Ict states, but participation was by far the greatest In An~ona and ~ew Mexico, where high yields are obtamed by Irrigation. With the slight gain in acreage planted to cott~n and with per acre yields only slightly .100~er than I? 1959, the 1960 cotton crop in the DIstnct states IS estimated to be 6,370,000 bales, or 1 percent more than SOUTHWESTERN STATES MILK INO CHANaE) ••• CATTLE ••• WOOL LAMBS -10 o P E RCENT + 10 CII ANGE I IQG O' + 20 FR OM 19&51 . _E, rlmohd . SDURCES : U.S. D. parlm.nl of A;tl cuUur • • F,dlr ol R... "II Ba nk 01 00110 • • BUSINESS REVIEW 12:1960 1 year earlier. The calf crop would have been larger in view of the gain in numbers of cows and heifers, but the calving rate declined in each of the District states and showed a 2-percent decrease for the entire Southwest. percent fewer than in June 1959. Despite the smaller milking herd, the trend toward higher output per cow apparently is continuing, and total milk output in the District states in 1960 may be about the same as in the previous year. Although still relatively unimportant in the Southwest as compared with the production of stocker and feeder cattle, commercial cattle feeding is increasing in importance. The numbers of cattle and calves fed out this year advanced significantly over the year-earlier levels. Much of the rise in feeding in the past few years has been the result of the establishment of several large commercial feeding operations. Unlike the anticipated 1960 outturn of many livestock products, the output of hogs and poultry products (except turkeys) is expected to be below the yearearlier levels. The relatively low prices received for hogs and most poultry products last year have been a major factor in the reduced outturn of these products during the current season. On the other hand, the stronger prices that have resulted from the reduced output this year, both nationally and in the Southwest, may encourage producers to expand output next year. Sheep and lamb numbers in the Southwest also increased, further extending the trend that began during 1957 - a year earlier than in the case of cattle inventories. At the beginning of 1960, there were almost 9 percent more sheep and lambs in the Southwest than at the same time in 1959, and indications point to a further slight increase during the year. Similarly, the number of goats, continuing the upward trend which began in 1953, was 6 percent larger on January 1 of this year, and an additional minor gain probably occurred during 1960. Hog prices declined to fairly low levels in 1959 and into January of this year. As the outlook for hog prices darkened, farrowings were reduced, and the 1960 spring pig crop in the Southwest was almost one-fifth smaller than the spring pig crop a year earlier. Consequently, marketings during the latter part of this year have decreased, and prices have risen moderately above 1959 levels. For the year as a whole, the 1960 output of pork in the District states may average one-tenth below last year. The upward trends in sheep and goat inventories have resulted in moderate gains in lamb, wool, and mohair output this year. Shorn wool production in the Southwest is estimated at 6 percent above that in 1959 and the largest since 1950. A slight decline in the average weight per fleece was more than offset by the increase in the number of sheep shorn. Somewhat similar price trends have affected the output of eggs and broilers. Persistently low prices were a factor in the 12-percent reduction in the number of layers raised on southwestern farms and ranches this year, as compared with 1959, and the consequent decline in egg production. Producers also have kept a relatively tight rein on broiler output this year in order Poor weather conditions in some parts of the District to avoid the large price-depressing supplies that have during the lambing season partially accounted for the occurred at times in the past. Broiler chick placements 5-percent decline in the lambs saved this year. Conse- through November in the major broiler-producing states quently, the lamb crop during 1960 is estimated to be in the District were 6 percent less than in the comparable only 3 percent larger than a year ago. Similarly, in- period last year. On the other hand, southwestern clement weather reduced the number of kids saved, but turkey growers may produce 7 percent more birds in mohair output may be around 5 percent greater than in 1960. 1959. Lamb feeding, which is carried out on a relaFarm Income Decreases Slightly tively modest scale in the Southwest, was not as Prices, production, and costs all are important in extensive this year, and lamb marketings may show determining the net income of farmers. The adjustonly a small increase. Thus, most of the output advance ments farmers have made in the production of various for sheep and goat products will be centered in animal types of crops and livestock indicate the strong influence fibers. of prices upon management decisions. Changes in the Although numbers of milk cattle of all ages on southwestern farms and ranches were fractionally higher at the beginning of this year than a year earlier, the number of milk cows was smaller and by June was 1 r BUSINESS 14 REVIEW 12:1960 supplies of and the demand for agricultural products, as well as the effects of governmental programs, determine the level of prices for farm commodities. The prices received by Texas farmers (which are represen- tative of price trends in the Southwest as a whole) during the first 10 months of this year averaged 8 percent below the comparable period in 1959. Prices received for crops were 4 percent lower, and those for livestock and livestock products were 12 percent less. Of the major commodity groups, only potatoes, commercial vegetables, dairy products, and poultry and eggs showed higher prices than a year earlier. In the lO-month period, the greatest decline - 17 percent - occurred in prices for meat animals, reflecting the large marketings of hogs early this year and the increasing supply of cattle and calves. Fruits, cotton, feed grains and hay, oilseed crops, and food grains were the most significant contributors to the over-all decline in prices for crops. CASH RECEIPTS FROM FARM MARKETINGS FIVE SOUTHWESTERN STATES MILLION S OF DOLLAR S MILLION S OF DOLL ARS 60 0 I 50 0 I 300 , / t---I-\ \- 19 5 9 - - / I I 40 0 I 600 L_--~ 500 \ I 4 00 \ 'I> w.~~1 \ 200 1--' \ 3 00 ... __ .. J. \:-;;-"""",,,.!:' , 1960 2 00 ' I 00 100 o J M A M A o N 0 0 SO URCE: U. S. D.po r tm. nt 0' Ao rlc ultur • • Prices of most of the major crops and some of the important livestock products are influenced by governmental price support programs. The 1960 dollars-and- by 5 percent. The peak marketing period for crops and cents support levels for 3 of 19 commodities produced livestock is in the final quarter of the year, and the in the Southwest were lower as compared with a year lower cotton prices and the seasonal decline in cattle earlier, 10 were unchanged, and 6 were slightly higher. prices are apt to hold cash receipts below a year ago Support prices for wheat, corn, and upland cotton despite the higher prices expected to be received for were less than in 1959, while those for rice, peanuts, some commodities, notably hogs and eggs. extra-long staple cotton, butterfat, milk for manufacThe rather persistent upward climb in the costs of turing, and honey were higher. items purchased by farmers over the past several years Despite the slightly larger agricultural output has been a factor depressing net farm income. These expected in the Southwest this year, the lower pnces cost pressures continued in 1960 but moderated someare likely to reduce cash farm income to below the $4.1 what as compared with the past few years. The index billion total for 1959. During the first 9 mon~hs ?f 1960, of prices paid by farmers in the Nation (no comparable cash receipts from farm marketings in the ~Istnct states index is available for the Southwest) averaged almost were trailing the January-September penod last year 1 percent higher during the first 10 months of this year than in the corresponding period in 1959, or slightly below the rise that occurred between 1958 and 1959. This moderation in cost pressures is heartening; but with FAR M CO MMODITY PRI CES lower prices for farm and ranch products, net income TEXAS .(~o6t-x_____~(~ 19~10...; - 1:4:..~ . I~ O~ O) _ _ _ _-IINO:~O to farmers this year is expected to decline more than cash farm income. 350 b ______+ - - -- -::-:==-1 350 \. _ _ _ _---j 300 300 1--- - - - -....... 250 - - --I-- - - - - -----j 250 , .. ,----.', "'"" " --, , ...... I-- ",---------- ---t---"" . . . . .".~,.:.,'-------__j 2 00 ALL CROPS + - - - - - - -1 150 1 -_ _ _ _ _ _ 100 L ' SOURCE : 150 - - - : - ; ; :-;;-;;-- -- L- - " \ "19i965c01--~ 100 1959 u. S. D. portm.nt Growth in Equities Slackens Although it is not likely to match the record levels of 1958 and 1959, the prospective level of cash farm income in the Southwest this year may be the third highest of record. Ne.verthele~s, the decline that ~as occurred in cash farm mcome smce 1958, coupled WIth the persistent rise in production costs, has maintained pressure on farmers and ranchers to adjust their operations. These pressures have been particularly severe on farmers who are operating small, low-volume farmrng units and those whose equity position is thin. 01 Aorlcultur.: BUSINESS REVIEW 12: 1960 I During the past several years, the value of assets and equities of the Nation's farmers has risen quite sharply, but in 1959 the rate of increase in asset and equity values slowed significantly. Although specific data are not available for the Southwest, a comparable trend probably occurred. A leveling off of farm real-estate values and declines in the inventory value of livestock and crops primarily accounted for the slower growth in farm asset values. The indebtedness of southwestern farmers and ranchers remains fairly moderate; but some increase over year-earlier levels has occurred, and equity positions may have shown little or no growth. Nonreal-estate debt held by principal lenders in the Southwest at the beginning of 1960 was 13 percent larger than a year ago. Farm real-estate mortgage indebtedness was 6 percent higher. Data are not available for all types of Lenders for 1960, but partial data suggest that borrowings by farmers have remained above 1959 levels. In the Eleventh Federal Reserve District, outstanding nonreal-estate loans to farmers held by commercial banks at mid-June were 8 percent above June 10, 1959, and loans on farm real estate were 7 percent greater. Summary and Outlook pears relatively sound. However, a few recent developments affecting future farm incomes merit caFeful study. If the recent slackening in the rise in southwestern farm Land values continues during the next few years, appreciation in land values cannot be depended upon to provide additional security to loans secured by real estate. Furthermore, the cattle industry is in the expanding numbers phase of the cattle cycle, and the consensus of most observers is that somewhat lower cattle prices are likely. Little headway has been made in reducing stocks of wheat and feed grains; but the inventory position of cotton has improved considerably, and an increase in acreage allotments has been announced for 1961. Many of the factors dominating the current agricultural picture in the Southwest are likely to remain important influences during the next few years. Barring extremely poor growing conditions, the inherent productivity of the Nation's agriculture is such that the potential supply of food and fiber products may continue to present problems of oversupply. The capital requirements of southwestern agriculture will remain high, and the necessity of tailoring credit to fit the needs and abilities of each farmer and rancher is likely to become increasingly important. The current financial condition of the majority of the commercial farmers and ranchers in the Southwest ap- NEW MEMBER BANK The Main Bank and Trust, San Antonio, Texas, located in the territory served by the San Antonio Branch of the Federal Reserve Bank of Dallas, became a member of the Federal Reserve System on November 25, 1960. The. n.ew member bank has capital of $500,000, surplus of $430,000, undivided profits of $246,000, and total resources of $9.9 million. The officers are: Roy H. Schultz, President; Alvin W. Cowles, Vice President and Cashier; J. A. Potts, Vice President; James F. Stroker, Vice President; John Catto Stradley, Assistant Vice President; Mrs. Alberta Mischer, Assistant Cashier; and Roger Word, Assistant Cashier. I BUSINESS REVIEW 12:1960 J. Z. ROWE Senior Economist BUSINESS REVI E W BUSINESS, AGRICULTURAL, AND FINANCIAL CONDITIONS A significant easing in reserves lower. New car registrations in the four major markets and an increase in deposits in Texas also showed a good gain over September enabled the Eleventh District but failed to equal those in October 1959. weekly reporting member The combination of a rise in daily average crude oil banks to improve their liquidity production in the District and a moderate reduction in positions during the 4 weeks ended November 16. crude runs to refinery stills resulted in a slight increase Short-term investments and cash accounts showed in crude oil stocks of District origin during early Nomarked expansion, loans moved moderately higher, vember. The Texas Railroad Commission has inand average borrowings from the Federal Reserve creased the State's December allowable schedule Bank of DallQs declined. to 9 days from the a-day schedule in effect during the preceding 7 months. Refined product demand Freezing temperatures in November ended the advanced seasonally, and product invento ries 1960 growing season in the northern part of the District. Crop harvesting has been active in western declined slightly. The total value of construction contracts in the Dissections but has been delayed by rains in eastern trict states in September was down 7 percent from areas. Soil moisture is excellent in wheat areas, and August but up 23 percent from a year ago. Residential the crop in the High Plains is considerably ahead of awards rose slightly over August, while "all other" grazing. Most of the 1960 cotton and grain sorghum construction contracts were sharply lower. crop has been harvested. The seasonally adjusted index of Texas industrial District department store sales in October rose production remained at 173 during October and was more than seasonally over September but were less 4 points above the October 1959 level. Nonagriculthan in October 1959. Year-to-year sales declines in the District states advanced durtural employment Were recorded in most of the major departments. ing October, but unemployment in Texas, estimated Department store inventories continued above a year at 172,100, rose contraseasonally. ago, but new orders and orders outstanding were Department store sales in the District rose more than seasonally during October but were 4 percent under a year ago. Most of the year-to-year decline resulted from there being one less business day in the month this year. The seasonally adjusted index of department store sales reached 172 percent of the 1947-49 average in October - up from 166 in September and only slightly below the 173 recorded for October last year. Cumulative sales for 1960 through October 31 were 2 percent lower than in the first 10 months of 1959. Comparisons of sales of the various types of goods handled by department stores also reflect the smaller number of business days in October this year. Year-to- DEPARTMENT STORE SALES (Perce ntago change i n re to il va l ue), O ctober 1 960 fro m Area Total El e ve nth Distri ct • . •.•. •. .. . .. . . Corpus Christi ..... . .. · ··· .. ·· ·· .. ·· Dallas .... .. • .. · .... ·· • .. ··· .. · .. . EI Paso • . . .. · ····· · •·········· · ··· Fort Worth ... ..... · · ........ · ····· Houston • •• •••••.•• . •• . •• , • •. •••.. San Antonio •••••.•.. . ••.••.• • •. . .• Shreveport, la . ...• .. .... . ... • .. .. . Waco •.. • · · ··· · ·· ···· · ···•······ . Oth e r citi es •• . . ·· · ········• · ······ Septe mber 1 960 10 23 8 16 12 13 10 6 13 7 O ctob e r 1959 -4 - 9 - 6 - 13 10 months, 1960 from 195 9 -2 - 6 1 - 13 - 9 -5 - 6 -4 - 3 - 7 4 - 6 - 11 - 3 o 2 year declines were recorded in most of the major departments at District stores which report breakdowns of sales by type of goods. A few examples were the 10percent declines in sales of both women's and misses' dresses and men's clothing; the 7-percent decrease for BUSINESS REVIEWI 12: 1960 71 INDEXES OF DEPARTMENT STORE SALES AND STOCKS Eleventh Federal Reserve District (1947.49 = 100) SALES (Doily overage) Dole STOCKS (End of monlh) Seasonally Unadjusled Seasonally adjusled Unadjusled 177 165 159 176 173r 169 166 172 203 192 201 209p 1959, Oclaber ... ... 1960, Augusl........ Se plember. • • • OClober. • • ••• adjusted 185 192 189 190p r-Revised. p-Preliminary. radios, television sets, and musical equipment; and the 19-percent reduction for major household appliances. Preliminary data on inventories at the department stores in the District indicate that stocks on hand rose a little more than seasonally during October and were slightly higher at the end of the month than at the same time last year. On the other hand, both orders outstanding and new orders placed during the month declined in October and were well below the October 1959 levels. CROP REPORTING DISTRICTS OF TEXAS defoliated plants, resulting in the opening of bolls in areas missed by earlier, light freezes. New car registrations rose substantially during Grain sorghum combining is nearing completion in October in each of the four most populous areas in the the High Plains. The killing frosts helped to reduce the District; for the four areas combined, total registrations high moisture content which had delayed harvest north were up 17 percent from September. In comparison of the Canadian River. Most of the peanut crop in the with a year earlier, however, registrations were 8 to 10 Cross Timbers region has been dug, but harvesting of percent lower in Dallas, Fort Worth, and San Antonio. the south Texas crop was delayed by intermittent The only year-to-year gain occurred in the Houston showers. area, where registrations were 6 percent higher. CumuWet weather conditions have slowed harvesting of lative registrations in the four areas through the end of October continued to be 5 percent below the com- winter vegetables in both south Texas and the Winter Garden area. In the Lower Valley, cabbage harvesting parable period in 1959. is under way, and peppers are moving in good volume; Freezing temperatures in the fair quantities of corn, cucumbers, field peas, and second week of November ended squash are available. the 1960 growing season in the northern part of the District. COTTON PRODUCTION Harvesting of crops has been Texas Crop Reporting Districts active, in clear autumn weather, throughout most (In thousands of boles - 500 pounds gross we ighl) western areas, but showers have delayed activity in 1960, 1960 eastern sections. indicate d as percent of Soil moisture is excellent in virtually all wheat areas of the District, and seeding of the crop for harvest in 1961 is in the final stages. Some Northern High Plains wheat is boot-top high and is keeping well ahead of grazing. Fall oat seedings are nearing completion; however, wet fields have delayed flax planting in south and south-central Texas counties. Cotton harvesting has progressed rapidly throughout most of the District, and the major portion of the 1960 crop has been gathered. The hard November freeze I BUSINESS REVIEW, 12:1960 1959 1958 9 - Coastal Prairies .• •.... .. .. .• 1 O·N - Soulh Toxas Plains • •.•.. •. •• • 10·S - lawor Rio Grando Volley •.••. 480 1,475 300 340 20 440 50 70 285 65 110 155 110 50 350 472 1,424 266 333 19 475 54 70 277 58 159 146 159 59 445 530 1,502 261 282 19 425 43 54 289 34 99 172 156 47 395 102 104 113 102 105 93 93 100 103 112 69 106 69 85 79 Siale .......................... 4,300 4,416 4,308 97 Area l·N l·S 2·N 2·S 3 4 5·N - High Plains •••• ••...• High Plains •.••..... . Plains . . ••.. ... •. ... Plains . • •.. .....••.. - Western Cross Timbers ... . .... - Black and Grand Prairies . .... - Easl Texas Tlmbored Plains •.•• s·s - 6 7 Norlhern Soulhern Red Bed Red Bed Ea st Texas Timbere d Plains . ... - Trons·Pecos . .. . . .. .... ... ... - Edwards Plaleau ••••... •. .•. 8·N - Southern Texas Prairies . . ..•.. 8·5 - Southern Texes Prairies . . . .... November 1 SOURCE , United Stalos Deportment of Agriculture. 1959 CONDITION STATISTICS OF WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES CROP PRODUCTION (In thousands of bushels) 1960, 1960, estimated Crop Nov. 1 Cotton ' ••.•••... Corn •• ••• . ••••• Winter wheat •••. ~ats .... .. . .... arley, • •. •.... Ry............. Rice ' .. .. .... .. . ~orghum grain ... la x:eed. . . . . . . Hay........... P.anuts· ........ Irish pototoos ti . • . ~weet rotatoes'.. ecans ..... . . . . 4,300 29,876 87,728 28,730 8,572 198 12,927 283,520 1, t 60 2,077 213 125 2;547 1,320 37,000 Eleventh Federal Reserve District FIVE SOUTHWESTERN STATES' TEXAS 1959 4,416 42,728 59,850 26,473 5,752 190 13,136 277,666 357 2,340 206,635 2,562 1,495 32,000 Average estimated 1949-58 Nov. 1 4,072 41,318 36,751 28,388 3,045 236 13,050 133,4 16 655 1,846 185,392 1,591 1,337 31,970 6,370 54,562 2 14,090 42,7 16 35,115 1,322 26,209 319,304 1,185 6,364 364,325 6,286 5,174 87,500 Average 1959 6,327 72,139 157,687 42,764 29,598 1,188 26,046 311,098 435 6,463 351,435 5,565 6,6 15 66,400 thou sands thousands thousands thousands Nov. 16, 1960 Oct. 19, 1960 Nov. 18, 1959 1,550,473 33,336 1,547,007 33,384 1,526,528 33,363 274 21,284 3,274 21,68 1 743 11,810 6,295 180,272 8,793 174,751 10,301 188, 2 15 95,309 135,5 16 287 92,510 208,230 748,273 98,410 122,368 505 26,131 206,2 11 753,250 127,396 117,663 159 43,465 210,288 710,678 Grass loans .•.... .... ......... ... ... .. , 3,072,059 l ess reserves and unallacated charge-offs. . 54,775 2,995,765 55,208 2,980,609 50,243 Net loans... ... .. . . .... .. •.. ... .. . .. . . . 3,017,284 2,940,557 2,930,366 116,377 32,557 54,987 30,821 45,913 39,749 117,6 21 783,150 341,263 352,436 109,537 777,271 323,281 356,169 65,81 2 791,246 319,506 344,614 Total investments ......... ...... .... · ·· .. 1,743,4 04 1,652,066 1,606,840 588,618 499,599 1,923 52,073 572,758 208,863 519,291 564,765 2,179 52,431 5 18,510 196,827 504,818 480,176 2,417 50,267 558,789 205,460 TOTAL ASSETS ...................... , 6,684,522 6,446,626 6,339,133 Deman d deposits Ind ividuals, partnerships, and corporations .... 2,927,797 157,827 Unite d States Government • • •••••.••••.... 213,257 States and political subdivisions .• ... . . . . . .. 2,953,850 72,108 178,949 1,050,521 21,505 45,46 1 2,90 1,691 107,490 226,276 1,031,198 16,449 67,536 Total demand deposits . • ...... , ........ 4,502,947 4,322,394 4,350,640 Time d e posits Individuals, partnerships, and corporations .. . . 1,181,983 9,913 United States Government •••••..••.••• .. . 394 Postal savings • • • ••••..•• •••. •• .••. ..... 1,154,083 9,913 394 226,525 10,395 1,055,898 6,255 421 168,941 7,484 ~ 1,401,310 1,238,999 Total d eposits • . .... , .... ..•. ....... 5,933,887 5,723,704 50,169 109,447 563,306 5,589,639 97,764 108,913 542,817 6,446,62.~ 6,339,133 1949-58 6,072 69,317 107,189 43,937 16,278 968 25,356 154,380 821 5,349 288,687 3,708 6,34 1 69,827 ~ trizona, louisiana, New Mexico, Oklahoma, and Texas . :1 n .. In r. In ~ In (In thousands of dollars) of bolos. of bog s containing 100 pounds each. of tons. of pounds . In thousands of hundredweight. SOURCE , United States Department of Agriculture. Itom ASSETS Commercial and industrial loans • ..... .•.••... Agricultural loans•• •••••••• .•• ••• ....... ••• Loon s to brokers and d ealers for purchasing or carrying: U. S. Governm ent securities ••.... ..... . .... Other securities • • •... •••... .. ...... ..•.. Other loans fo r purcha si ng or carrying : U. S. Governm ent securities ••••••• •• .... • •• Other securities ••• .•• .. • •..••.••••••.... Loans to nonbank Anancial institutions: Soles flnanc e, personal flnance, etc .• • .•...• • Savings bonks, mtg e. cos., ins. cos., etc .•• . ... Loans to foreign banks ••• • •••••• • ••• •• •• • •• Loans to domestic commercial banks ••••••••••• Real·estato loans •..••..••..••.•••.•••.•. . . All ather loans ...... .. . . . . ............... . Treasury bills ..... .. .................... . . . Ranges in the western part of the District are going Into the winter with above-average grass cover. Stocker cattle are in demand to utilize the surplus small-grain pasture, and fall calving is approaching a peak level in the Edwards Plateau. During the 4 weeks ended November 16, the District weekly reporting member banks showed a noticeably improved liquidity position. Marked gains in reserves and deposits enabled the banks to reduce borrowings while making substantial increases in shortterm investments and cash accounts and a moderate extension of new loans. The ratio of loans to deposits declined, and total assets showed the greatest expansion of the year. . ~ross.r0ans (excluding interbank loans) grew $9.9 ~Ullhon III this 4-week period, largely as a result of Increases in loans to nonbank financial institutions and co~me~cial and industrial loans. In the comparable penod III 1959, loans rose $7.3 million, mainly because ?f expanded commercial and industrial loans. Total Invest~.ents were ~91.3 million higher; holdings of all matuntIes of Umted States Government securities in~r~ased, with Treasury bill holdings expanding $61.4 mllhon. A year earlier, total investments declined $65 million. . Total deposits grew $210 million during the 4 weeks, With demand deposits advancing $180 million. Substantial increases were recorded in demand deposits of the United States Government, states and political subdivisions, and domestic commercial banks. Time Treasury certiflcates of indebtedness ......... . Troasury notes and U. S. Government bonds, including guaranteed obligations, maturing : Within 1 year . ••.•.. . ....•.. ... .• ... . .. After 1 but within 5 years ... . . ... . .... . . . After 5 years . •....... ··· · · · · ··········· Other securities ••.. .. ... ...... . •... .. .•.. . Cash items in process of collection •. ...... . .. . Balances with banks in the United States . ... . . . Bolan ces with banks in foreign countries • ..... . Currency and coin ••... , .•.•• • ••••... ...... Reserves with Federal Res erve Bank • .. , ...... . Other assets •• .••• • ••.•••.• , ••.•...... . ... LlA81L1TIES AND CAPITAL ACCOUNTS 8anks in th e United States ...... . . . ... . ... . 1,126,455 17,399 Banks in foreign countries •.. .. .. . . ..... . .. 60,212 Certifled and offlcers' checks, etc .•. .. ... . .. States and political subdivisions ••. . . ... .... Banks in the U. S. and foreign countries .. ... . Total time deposits •..•.. · · •· · · · ······• 228,295 10,355 Bills payable, rediscounts, eIC . ..... .•. , . . . . . . 45,934 All ather liabllltl.s .......... . . .. , . . . . . . . . . . Capital accounts ••........... ············· 134,781 569,920 TOTAL LIABILITIES AND CAPITAL ACCOUNTS 6,684,522 deposits rose $29.6 million, primarily because of the $27.5 million gain in deposits of individuals, partnerships, and corporations. In the corresponding period last year, total deposits declined $60.8 million, as demand deposits fell markedly and time deposits increased only slightly. In the 4 weeks ended November 2, total reserves of all member banks in the District increased, but the expansion in required reserves absorbed over two-thirds BUSINESS REVIEW 12:1960 I 91 RESERVE POSITIONS OF MEMBER BANKS Eleventh Federal Reserve District (Ave ra ge. of doily flgure •. In Ihousands of dolla rs l 4 wee ks e nd ed Ocl. 5,1960 Monlh of Ocl. 1959 550,340 7,616 550,574 541,010 9,564 546,005 4,569 8,000 -3,431 459,514 429,992 29,522 396,573 62,941 9,762 53,179 451,93B 422,9 23 29,015 392,765 59,173 13,176 45,997 1,0 25,104 9B5,447 39,657 954,475 70,629 9,B34 60,795 1,002,512 963,933 38,579 93B,770 63,742 21,176 42,566 .4 wee ks end ed Nov. 2, 1960 Ite m RESERVE CITY BANKS To tal reserves held • . ....... . .. With Fe d eral Reserve Bank .. .. Ca sh allowe d a s reserves ••... Requir ed reserves •••• ••• . ••• . . Excess r eserves ••• •••••••••••• Borro wing s••••••• . . • • •••• , • •• Free rese rves •.• •. . ..... .. •... COUNTRY BANKS Totol reserves he ld •••.• • ..•••• With Fe deral Reserv e Bank.. .. Cosh allowe d a s reserves • . •• • Required r eserves • •••• • • . . •• . • Excess rese rves ••• • .... . ..... . Borrowings •••••. . .....• • .... . Free r eserv es •• ••••••. . • .. •.• . All MEMBER BANKS Total reserves held ••. . ........ With Fe deral Reserve Bank .. . . Ca sh allow ed a s rese rves •.••• Re quire d rese rves •... ....•. . •• Exc ess rese rves • .. .•.... . ..... Borrowin gs •. ... . . . . •••.. . . . • . Free rese rves •.. . . ... . ..... . .. 565,590 555,455 10,135 557,902 7,6B8 72 543,199 7,141 26,422 - 19,281 447,438 408,144 39,294 1 B,913 20,3Bl 997,778 951,343 46,435 45,335 1,100 NOTE . - Re gulations pe rmitting me mbe r banks to count part of their vault cosh in mee ting rese rve require me nts be cam e e ffe cti ve in Dece mb e r 1959, and on January 1, 1960, th e re se rve computation pe riod for country memb e r banks wa s changed to a b iweek ly basis. Th e re fore , monthly data comparabl e to year-e arlier mate rial are not a vailabl e. of this reserve gain. Borrowings, however, declined markedly, as borrowings by reserve city banks fell below $1 million. As a result of these factors, the reserve position of reserve city banks improved considerably, and free reserves reached their highest level to date. Indeed, this marks only the third time in 1960 that reserve city banks have shown a net free reserve position. Country banks also increased their free reserves, thereby maintaining a comfortable reserve position. The Federal Reserve Bank of Dallas showed an expansion of $29.2 million in total earning assets between October 19 and November 16. This net increase resulted from a growth of $33 .5 million in holdings of United States Government securities and a decline of $4.3 million in member bank discounts. Federal Reserve notes in circulation rose $5.5 million during this period to a level $15.3 million above a year earlier. Gold certificate reserves expanded $64.4 million during the 4 weeks ended November 16 and were $57.8 million less than a year ago. During the current adjustment period, spot crude oil has been virtually unavailable, and the price of crude oil has firmed at an average of $3 per barrel. Both District and national crude oil stocks have been significantly lower than the year-earlier levels; however, steady crude oil output, reduced crude runs to refinery stills, and increased crude oil imports east of California permitted crude oil inventories of District and national origin to advance slightly during October and early November. The improved tone of the industry also spread to the drilling phase. Although the average number of rotary rigs active in the District declined slightly during October, both total footage drilled and well completions rose significantly, indicating more intensive utilization of drilling equipment. All barometers of drilling activity, however, remained well below a year ago. Refined product demand advanced seasonally during October, and product inventories declined slightly. The expected decrease in gasoline demand failed to occur, and stocks fell moderately, although remaining somewhat greater than a year earlier. Distillate fuel oil demand rose less than seasonally as temperatures across the Nation for the month of October averaged 20 percent warmer than in October 1959. Kerosene CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS MARKETED PRODUCTION OF NATURAL GAS (In thousands of dolla rs ) (In m1llions of cubic feet) Nov. 16, 1960 Ile m Total gold ce rliflcate rese rves •• .• ••• .• ••. •.. 711,509 Discounts fo r me mb e r banks ••. . ...•. ..• . .•• 6,100 Othe r discounts and advances •••• .• •• . • . .• . 1,276 U. S. Governm ent secu rities • •• . • . . ••. . . . • • .. 1,112,495 Total e arning a sse ts •••• •• .•• . •• ... .• . •. . •• 1,119,B71 Me mb e r bank rese rv e d e posits ••• • • • . • ..•• .. 970,534 822,526 Fe deral Rese rv e notes in actual circulation •••• • I Recognizing the improved statistical position of the petroleum industry and allowing for projected seasonal requirements, the Texas Railroad Commission has approved a 9-day schedule for crude oil production in the State in December. For the preceding 7 months, the flow from prorated wells in Texas had been limited to an all-time low of 8 days in an attempt to adjust supply conditions to demand. Similarly, other prorating states severely restricted output; however, as inventories were brought under control and demand improved slightly, allowable production was permitted to advance. The December allowable for southeastern New Mexico will be the same as in November, when the allowable was raised for the first time since May. BUSINESS REVIEW 12:1960 Oct. 19, 1960 647,121 10,419 1,276 1,079,017 1,090,712 902,644 B17,069 Nov. 18, 1959 769,290 10,750 348 1,060,678 1,071,776 999,625 B07,210 Second quarte r First quart e r 1960 1960 Second quart e r Are a Louisiana •.•• • ..• • .. . . •• ..•. New Me xico • •• • • ••.. •. .• .•. . Texas ••• ••••• ..• • .. . .... •• . 65B,300 198,200 180,000 1,41 B,200 B04,500 223,BOO 199,700 1,579,200 573,000 165,400 165,BOO 1,336,300 Total .... ..... .. .... .. .. .. 2,454,700 2,B07,200 2,240,500 Oklahoma . . ....... . .. .. .. . . SOURCE , United State. Bureau of Mines . 1959 demand, supported by increasing use of commercial jet of Housing indicates that, of the 1.3 million housing fuel oil, continued to advance significantly. Larger units constructed in the five District states during the residual fuel oil imports failed to meet the increased 1950's, 1.2 million units were built in cities with popudemand, and stocks declined. The United States Depart- lations of 10,000 or more. The 23 largest cities in the ment of the Interior has set residual import allowables five southwestern states accounted for almost 800,000 for the first quarter of 1961 at 530,000 barrels daily, or of the 1.2 million urban units constructed. There are approximately 5.7 million housing units in the five 91,000 barrels per day more than the 1957 base. states, representing about 10 percent of the Nation's In September the total value of total. construction contracts in the five The seasonally adjusted index of Texas industrial southwestern states amounted to production during October remained at the revised $318 million, down 7 percent Septemberlevelof 173, or 4 points above October 1959. from August but 23 percent Total manufacturing increased slightly over September above September 1959. Residential awards increased as a result of strength in nondurable goods manufacturmoderately during September, while "all other" conwas 11 points above a year earlier. Nondurable ing and tracts were sharply below the previous m~nth. The latt~r goods output rose because of advances in petroleum decline occurred because of a substantIal cutback ill pFoducts, food, and apparel industries. Durable goods nonresidenti~l building awards; public works and production held steady, with strength evident in transutilities, the other major segment of "all other" awards, portation equipment, electrical machinery, and fabrishowed a moderate gain. cated metal products industries. Mining declined The value of construction contracts in the District slightly as there was a small reduction in crude petrostates during the first 9 months of 1960 totaled almost leum output. $3 billion, or 3 percent below the comparabl~ 19?9 Nonfarm employment in the District states rose to period. This decline occurred wholly in the residennal 4,450,800 during October, with seasonal increases in sector, which was 17 percent under January-September government, services, and trade more than offsetting 1959; however, the 10-percent gain in the "all other." declines in mining, construction, and transportation sector, which includes heavy engineering and nonreSIand public utilities. Manufacturing employment, which dential building awards, limited, to a large degree, ~he acounts for about one-fifth of total nonfarm employdecline in the total value of southwestern constructIOn ment, held steady during the month but was fractionally contracts. ab0ve a year ago. Unemployment in Texas rose slightly Residential construction accounted for over one-half in October to 172,100, or 4.7 percent of the nonfarm of the value of all new construction in the Southwest labor force. Average weekly insured unemployment, during the 1950's. The recently released 1960 Census representing 35 to 40 percent of total unemployment in the State, was substantially above a year earlier. NONAGRICULTURAL EMPLOYMENT Five Southwestern Stotest INDUSTRIAL PRODUCTION (Seasonally adlusted Indexes, 1947·49 Percent chang e Oct. 1960 from N umber of p ersons October Type of employment Total nonagricultural wage and salary workers •• Manufacturing . ...... ... . Nonmanufacturing . ....... Mining •••.•.•.... ... • 1960e 4,450,800 782,300 3,66 8,500 240,700 316,300 Construction .. . ....... . Transportation and public 403,100 utilities .. ........ . . . Trod •••..• • ••••.•.••• 1,1 0 1,500 202,500 Finance . .. . . .•.•.•.... 55 1,300 Servic e ••• .•••.•. '" •• 853,100 Government ..... ...... 1 Septem ber 1960 Octob er 1959r Sept. 1960 Oct. 1959 4,437,200 782,300 3,654,900 244,500 320,900 4,385,400 780,400 3,605,000 248,700 309,300 0.3 .0 .4 -1.6 -1.4 1.5 .2 1.8 -3.2 2.3 403,400 1,097,400 202,500 547,500 838,700 408,000 1,082,700 194.500 535,500 826,300 -.1 .4 .0 .7 1.7 -1.2 1.7 4.1 3.0 3.2 Arizona, louisiana, Now Mexico, Oklahoma, and Texas. e- Estimated. r - Revised. SOURCES , State emp loyment age ncies. Federal Reserve Bank of Dallas. Area and typo of index TEXAS Total industrial production . • . • Totol manufactures . • ••••.. · Durablo manufactures ....•.. Nondurable manufactures .. . . Mining .• . .......• ··.···· . UNITED STATES Total industrial production ..•• Total manufactures . •......• Durable manufacturos ... . , .. Nondurable manufactures .•. . Mining .. . ...... .. ........ Utiliti es •••••.•..• • •·••••· • = 100) Octob er 1960p September 1960 August 1960 October 173 217 252 201 129 173 216 252 200 131 174 219 250 204 130 169 206 243 190 132 162 160 165 159 126 294 162 161 166 160 126 294 165 163 169 162 129r 293 r 155r 154r 155 157r 120 272r 1959 p - Preliminary. r - Revised. SOURCES, Board of Governo rs of the Federal Res.rve Systom . Federal Resorve Bank of Dallas . BUSINESS REVIEW' 12: 1960 11 I CONDITION STATISTICS Of ALL MEMBER BANKS BANK DEBITS, END-Of-MONTH DEPOSITS AND ANNUAL RATE Of TURNOVER Of DEPOSITS Elevenlh federal Reserve District (Dollar amounts in thousands) Debits to d.mand deposit accounts l (In millions of dollars) Perce nt change from October 1960 Area Total-24 citi.s • •. .••. • $ 9,192,837 -1 0 Annual rate of turnover Sept. Oct. 1960 1959 ARIZONA Tucson •• ••.. •• •••••• $ 212,610 LOUISIANA 81,356 Monroe •••• ••••• •••• Shreveport ••••• • •••• 319,537 NEW MEXICO Roswell . •• • ....••••• 43,796 TEXAS Abil. n•• . •.......•.. 100,770 Amarillo •••• •••••••• 225,901 Austin •••••••••••••• 206,261 Beaumont •• ••• ••••• • 157,942 179,660 Corpus Christi •••• •••• Corsicana • •••••••••• 19,470 2,698,518 Dallas .. •... .•.. . . .• EI Paso •.. .......... 333,952 754,844 Fort Worth .. . ... .... Galveston •••• •.••••• 94,579 Houston •••••••••••• 2,495,627 26,575 laredo •..... ...... • Lubbock • . ...•...•.. 207,158 Port Arthur .•..... • .. 67,148 55,565 San Ang.lo . .. ...... San Antonio ••••••••• 582,223 Texarkana :!: ••••••••• 24,128 Tyl.r ......... . . .... 82,742 110,140 Waco ••••••• o • • 112,335 Wichita Falls • •....• . ••• Oct. 31, 1960 Oct. S.pt. Oct. 1960 1960 1959 -7 -6 $ 126,057 20.6 22.4 20.3 -2 -2 0 0 52,744 180,413 19.2 21.4 19.9 21.8 18.6 20.3 31,693 17.3 18.0 17.3 4 0 6 -1 3 -2 4 0 -7 -7 5 6 2 -4 3 -12 -2 -3 21 1 -2 -2 - 1 -3 13 -10 -2 9 0 -2 -3 -4 5 4 3 0 3 -12 2 -7 69,269 117,085 140,990 99,117 109,129 19,835 1,165,360 169,813 389,398 60,313 1,271,720 21,610 104,828 43,208 46,949 374,892 17,259 58,846 70,472 97,132 18.1 23.4 17.6 19.4 20.2 12.1 27.8 24.2 24.0 19.0 23.5 14.9 23.2 18.8 14.3 18.7 16.9 17.2 19.0 13.9 17.9 22.6 16.8 19.0 21.6 12.0 29.3 24.1 25.2 15.8 24.4 15.1 20.4 17.5 14.2 19.7 16.4 17.5 18.7 13.8 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 -2 $4,838,132 22.9 24.0 23.4 1 Deposits of individual s, partnerships, and corporations and of states and politica l subdiv is ion s. 2 These figures include onl y two ban ks in Texarkan a, Texa s. Total de bits for all bonks in Texarkana , Texa s- Ar kan sa s, including one bank located in the Eighth District , amounted to $54 ,455,000 for the month of Octob.r 1960. VALUE Of CONSTRUCTION CONTRACTS AWARDED (In thousands of doliars) January-S e pte mb er Area and type Sept.mber 1960 FIVE SOUTHWESTERN 318,214 STATES' .. ... .. ... 136,495 Residential. . •• •• • • All other .. . ....... 181,719 UNITED STATES .•. • . • 3,118,775 Residential. • ••• •.. 1.277,343 All other .. . . .. .. . . 1,841 ,432 August 1960 341,070 132,709 208,361 3,277,246 1,428,730 1,848,5 16 It.m Oct. 26, 1960 Sep t. 28, 1960 ASSETS loans and discounts ••••• •• •.• •.. ..• ••••• Unite d Stotes Government obligations •... •• Other securities ••••.• •.••• .•••.••..•••• Rese rves with Fe deral Rese rve Bank • • ••• •• . Cash in vault 0 • • ••• •• •••• •• •••••••••••• Balances with banks in the Unite d States •... Balances with banks In foreign countries e ... . Cash ite ms In process of collection •• •• • •• •• Other ass etse • •••.• •••• •..•• •.• •••. •••• 4,953 2,553 850 959 156 1,057 2 522 296 4,944 2,42 6 82 1 908 153 1,047 2 520 283 4,743 2,562 845 944 150 1,016 3 499 304 Demand de posits' S. pt.mb .r 1959 TOTAL ASSETS .... ....... ..... .... .. 11 ,348 11,104 11,066 LIABILITIES AND CAPITAL ACCOUNTS De mond d e posits of ban ks • •••. •• ••• • •... Oth.r demand d.posits .................. Time deposits •••••••••••• • ••• ••••• • • .•• 1,159 6,6 28 2,386 1,172 6,393 2,332 1,112 6,709 2,098 Total d e posits • ••• ••. • • .• •• •. •• .•• • .. Borrowings e •..••.. •• .. • • • • •• ..•• •••• • • Other Iiobilities e •• •••.••.....•. . • • •..•. Total capital accounlse •• • •••..•• . • '" . •. 10, 173 48 160 967 9,897 99 146 962 9,919 105 116 926 TOTAL LIABILITIES AND CAPITAL ACCOUNTS· •••••••• .... . . • ..• .. .. 11,348 11 , 104 11,066 e - Estimated. GROSS DEMAND AND TIME DEPOSITS Of MEMBER BANKS Eleve nth f e deral Reserve District (Averages of daily flgur.s. In millions of dolia rs ) GROSS DEMAND DEPOSITS Date 1958. Octob.r... 1959, Octob.r ... 1960: Jun •.... • July ...... August .... S e ptember October... Change from 2,781.5 2,415.5 43 6.5 1,075.0 121.2 101 .8 681.0 255.5 110.5 4,036.3 6,817.8 2,825.2 2,461.3 447.6 1,082.6 123.9 108.0 699.2 253.3 110.6 4,034.1 6,859.3 2,907.1 2,527.9 460.2 1,136.8 134.2 107.7 689.0 250.0 129.2 4,004.1 6,911 .2 SOURCES , BUSINESS REVIEW 12 S. ptemb er 1960 -1.6 -1.9 -2.5 -.7 -2.2 - 5.8 -2.6 .9 - .1 .1 -.6 Estlmat.d from Ameri can Petrol. um Institut. weekly reports. • United States Bureau of Mines. 1 12: 1960 3,87 1 3,962 3,747 3,649 3,761 3,763 3,8 24 2,105 2,099 2,191 2,184 2,280 2,317 2,368 1,149 1,078 1,098 1,104 1,143 1,170 1,198 Country banks 956 1,021 1,093 1,080 1,137 1,147 1,170 VALUATION (Dollar amounts in thousands) Percent change Are a (In thousands of barr. ls) ELEVENTH DISTRICT. •• . .... Texa s ..••• •. •.. • • •••••• Gulf Coa st • ... .... . . .. West Texas .. .••.•..•. East Texa s (prop er) . • ... Panhandle • • .. • . •.••.• R.st of State ... . ...... Southeastern New Mexico •• Northern Louisiana •• •• . •.• OUTSIDE ELEVENTH DISTRICT. UNITED STATES ............ Reserve cUy banks Total Oct. 1960 from NUMBER DAILY AVERAGE PRODUCTION Of CRUDE OIL October 1959' 3,744 3,820 3,726 3,772 3,745 3,814 3,875 TIME DEPOSITS Country banks BUILDING PERMITS Arizona, Louisiana , New Mexico, O klahoma, and Texa s. SOURCE, F. W. Dodg. Corporation. S·n60~er 7,615 7,782 7,473 7,42 1 7,506 7,577 7,699 3,0 82,205 1,4 67,504 1,614,701 28,605,092 13,572,701 15,032,391 1 Octob.r 1960' Total Reserve city banks 1959 1960 2,988,411 296,575 1,2 13,533 146,562 1,774,878 150,013 3,058,055 27,500,005 1,465,957 11,620,701 1,592,098 15,879,304 Ar e a Oct. 28, 1959 October 1959 -4.3 -4.5 -5.2 -5.4 -9.7 -5.5 -1.2 2.2 -14.5 .8 -1.4 Oct. 1960 10 months, 1960 from 1959 10 mos. 1960 Oct. 1960 8,6 14 3,482 $ 32,736 29 -21 -3 10 mos. 1960 S. pt. Oct. 1960 1959 ARIZONA 725 Tucson ••• . •.. • LOUISIANA 386 Shreve port • ••• TEXAS Abilene . •. . ... 91 Amarillo ..... . 252 Austi n ••.. .... 256 Be aumont. .. " 353 Corpus Christi .. 239 Dallas .••... .. 1,908 EI Paso ... .. .. 477 498 Fort Worth .... Galveston •.• • • 106 Houston ••.. • • 884 183 Lubbock . . . .. . 156 Port Arthur • ... San Antonio ... 1,161 183 Waco ••.. ...• 247 Wichita Falls •. 4,552 1,238 2 1,770 - 52 -22 -8 1,599 3,178 2,909 3,075 775 21,460 5,7 19 6,508 1,304 12,010 2,282 1,842 11,927 2,346 2,452 2,907 2,185 3,069 1,794 705 11 ,359 2,978 3,232 135 29,196 1,698 356 2,575 1,645 2,306 20,266 29,000 37,591 15,190 9,920 119,045 39,233 40,089 5,64 8 260,058 32,452 8,86 2 49,691 14,6 22 23,724 -27 6 5 6 -30 4 - 37 -27 -80 -10 -24 - 71 - 63 59 109 131 -2 3 -39 - 50 - 11 1 -39 -24 -4 1 - 7 - 64 - 38 -25 - 47 114 -16 -9 -27 -20 -44 -20 -30 -19 60 36 - 35 0 -6 -6 88 Total-17 citi.s . • 8,105 92,552 $70,860 $759,897 - 14 - 16 -4 04nnual CJ2eport FEDERAL RESERVE BANK OF DALLAS 1960 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 1960, with comparative figures for 1959, are shown herein. A review of economic and financial developments in the Nation and the District during 1960 is being presented in the January 1961 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 Statemel1t 01 eOl1ditiol1 Dec. 31, 1960 Dec. 31, 1959 ASSETS $ 731,394,963.80 32,693,136.17 $ 713,196,271 .55 31,036,856. 17 764,088,099.97 24,646,600.00 15,265,157.01 814,000.00 744,233,127.72 33,442,100.00 16,519,287.39 8,910,000.00 116,877,000.00 365,108,000.00 502,996,000.00 102,486,000.00 104,007,000.00 419,376,000 .00 439,465,000.00 99,137,000.00 1,087,467,000.00 1,061 ,985,000.00 1,088,281,000.00 825.03 259,467,958.26 13,900,431.99 8,620,432.64 1,070,895,000.00 748.48 294,453,959.80 11,338,918.76 10,599,025.81 2,174,270,504.90 2,181,482,167.96 835,972,900.00 815,894,820.00 971,083,292 .56 53,390,099.41 12,412,000.00 3,423,107.94 973,362,268.70 44,230,629.95 18,096,000.00 11,902,615.30 Total deposits. Deferred availability cash items . Other liabilities. 1,040,308,499.91 226,450,052.54 1,027,352.45 1,047,591,513.95 249,555,498.97 959,280.32 TOTAL LIABILITIES 2,103,758,804.90 2,114,001,113.24 23,503,900.00 47,007,800.00 22,322,450.00 44,644,900.00 513,704.72 70,511,700.00 67,481,054.72 TOTAL LIABILITIES AND CAPITAL ACCOUNTS $2,174,270,504.90 $2,181,482,167.96 Gold certifrcate account Redemption fund for Federal Reserve notes . Total gold certifrcate reserves. Federal Reserve notes of other Banks . O ther cash . Discounts and advances . U. S. Government securities Bills Certifrcates 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 1960 1959 $ 1,210,594.35 $ 1,281,935.17 43,466,853.37 34,008,358.32 55,372 .15 16,251.49 44,732,819.87 35,306,544.98 8,041,579.73 7,467,476.47 376,500.00 337,600.00 291,479.00 300,509.00 31,025.00 25,401.00 8,740,583.73 8,130,986.47 960,036.00 1,130,417.00 7,780,547.73 7,000,569.47 36,952,272.14 28,305,975.51 97,523.33 7,509.34 513,704.72 5,002,666.30 686.83 856.80 611,914.88 5,011,032.44 1,713.83 4,408.52 1,713.83 4,408.52 610,201.05 5,006,623.92 37,562,473.19 33,312,599.43 CURRENT EARNINGS Discounts and advances . U. S. Government securities. All other TOTAL , CURRENT EARNINGS CURRENT EXPENSES Current operating expenses. Assessment for expenses of Board of Governors. Federal Reserve currency Original cost, including shipping charges . 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 . All other . Total additions Deductions from current net earnings . Total deductions. Net additions . Net earnings before payments to U. S. Treasury. Dividends paid Paid U. S. Treasury (interest on F. R. notes) . Transferred to surplus 1,380,653.36 1,307,562.25 33,818,919.83 30,796,436.54 2,362,900.00 1,208,600.64 FEDERAL RESERVE BANK OF DALLAS President First Vice President * CHARLS E. WATROUS H.lRONS, HARRY HOWARD CARRITliERS, JAMES L. CAUTHEN, A. SHUFORD, Vice President Vice President and Eaonomic Adviser ARTHUR H. LANG, General Auditor *GEORGE F. RUDY, General Counsel and Assistant Secretary of the Board ROBERT H. BOYKIN, Assistant Counsel THOMAS R. SULLIVAN, Assistant Vice President E. H. BERG, AssistclIlt Cashier Roy E. BOHNE, Assistant Cashier HERMAN W. KILMAN, Assistant Cashier and Assistant Secretary of the Board E. A. THAXTON, JR., Assistant Cashier JAMES O. RUSSELL, Chief Examiner Vice President P. E. COLDWELL, Vice President 1. L. COOK, Vice President T. A. HARDIN, Vice President CARL H. MOORE, Vice President G. R. MURFF, Vice President and Acting Secretary of the Board Vice President Vice President and Cashier L. G. PONDROM, Vice President JAMES A. PARKER, T. W. W. PLANT, M. PRITCHETT, Vice Presidellt WALKER, EL PASO BRANCH HOWARD CARRITHERS, FREDRIC W. REED, Vice President in Charge Cashier T. C. ARNOLD, Assistant Cashier RASCO R. STORY, Assistant Cashier HOUSTON BRANCH J. W. C. HARTUNG, L. Vice President in Charge B. J. TRoY, Cashier COOK, Assistant Cashier SAN ANTONIO BRANCH CARL H. MOORE, A. E. ALVIN E. RUSSELL, • On leave of absence. Assistant Cashier Vice President in Charge Cashier MUNDT, FREDERICK 1. SCHMID, Assistant Cashier '])lrector~ FEDERAL RESERVE BANK OF DAllAS O. ANDERSON (Chairman and Federal Reserve Agent), President, Hondo 01/ & Gas Company, Roswell, New Mexico LAMAR FLEMING, JR. (Deputy Chairman), Member, Board of Directors, Anderson, Ciayton and Company, Tnc., HOliS/Oll, Texas MORGAN J. DAVIS, President, Hltmble 01/ & Refining Company, Houston, Texas JOHN M. GRIFFITH, Presidelll, Tile City National Bank of Taylor, Taylor, Texas D. A. HULCY, Cllairm all Of the Board, Lone Star Gas Company, Dallas, Texas 1. EDD MCLAUGHLIN, President, Security State Bank & TTI/st Company, Ralls, Texas J. B. PERRY, JR., President and General Manager, Perry Brotllers, In c., Lufkin, Texas ROY R1DDEL, Presitlellt, First National Bank at Lubbock, Lltbbock, Texas H. B. ZACHRY, President, H. B. Zachry Company, San A ntonio, Texas ROBERT El PASO BRANCH FLOYD CHILDRESS, Vice Presltlent, The First National Bank of Roswell, Roswell, New Mexico ROGER B. CORBETT, Presitlent, New Mexico State University, University Park, New Mexico DYSART E. HOLCOMB, Director of Research, E/ Paso Natural Gas Company, EI Paso, Texas JOSEPH F. IRVIN, Presidelll, SOll/hwest National Bank of EI Paso, EI Paso, Texas WILLIAM R. MATHEWS, Editor and PubUs/ler, "The Arizona Daily Star," Tucson, Arizona CHARLES B. PERRY, Presitlent, First State Bank, Otlessa, Texas DICK ROGERS, President, First National Bank in Alpine, Alpine, Texas HOUSTON BRANCH A. E. CUDLIPP, Vice Presitlent alld Director, Lltfkin Foundry & Machine Company, Lufkin, Texas M. M. GALLOWAY, PreSident, First Capitol Balik, West Columbia, Texas JOHN E. GRAY, Presidell t, Tile First National Bank of Beaumollt, Bealtmollt, Texas MAX LEVINE, Presitlent, Foley's, HouStOIl, Texas J. W. McLEAN, President, Texas Natiollal Bank of HOUStOIl, HouStOIl, Texas TYRUS R. TIMM, Heatl, Departmellt of Agricultural Economics alld Sociology, A. & M . Col/ege of Texas, COl/ege Station, Texas ( ),VACANCY SAN ANTONIO BRANCH BURTON DUNN, Chairmall of the Executive COII/miltee, Corpus Christi State Natiollal Balik, Corpus C/"istl, Texas G. C. HAGELSTEIN, Presidell t ~nd Gelleral Manager, Ullion Stock Yartls, Sail AlltOllio, Texas DONALD D. JAMES, V ,ce Presitlent, The Austin Natiollal Balik, Austill, Texas FORREST M. SMITH, Presitlent, Natiollal Balik of Commerce of San AntoniO, San AlltOllio, Texas JOHN R. STOCKTON, Professor OIIll<Silless Slalistics and Director of Bureau of Bltsilless Research, The lIiversify of Texas Austill Texas DWIGHT D . TAYLOR, Presitlelll, Pall Ame:icall St~te Balik, Brownsville, Texas HAROLD V AGTBORG, Chairman of tile Board, Soulhwesl Research Center, San AIIIOllio, Texas FEDERAL ADVISORY COUNCIL MEMBER I. F. BETTS, Presitlent, The Alllericall National Balik of Beaumollt, Beal<mont, Texas BUSINESS REVIEW INDEX FOR THE YEAR 1960 GUIDE TO PAGE NUMBERS The first number indicates the issue, and the second num· ber, th e page of the issue. The issues are numbered from 1 to 12, beginning with January. SPECIAL ARTICLES "Agriculture in 19601' ................. ... .. .. .... ..... .. ......... .... .... .. .... .. 12: 1- 6 "A Year of Growth and Labor Unrest" .... ...... ... ......... ..... ... ...... 1: 1-10 "Banking Activity in 1959" .. . ..... .. ..... .. ... .. ........ .. .............. ..... 3: 1- 6 "Emergency Planning at the Federal Reserve Bank of Dallas" .. 5: 5- 6 "Recent Developments in the District Petroleum Industry" .. .... 4: 1- 3 "Recent Trends in Southwestern Personal Income" .... .. .. ...... .. 10: 1- 6 "Regional Trends in Retail Trade" .... .. .. .. .... ...................... .. .. 2: 1- 6 "Southwestern Population Trends During the 1950's" .......... .. 11: 1- 6 "Southwestern Trust Developments in 1959" ....... .. ...... .. .. .... .. . 7: 1- 6 "The Emerging Employment Pattern" ...... ... .. ...... ...... ............ 4:4- 6 "The Growth of the Southwestern Petrochemical Industry" .... 6: 1- 6 "The Importance of Recent Inventory Changes" ......... .. ........ . 5: 1- 4 "The Nation's Economy at Midyear" .................................... . 8: 1- 6 "The Outlook for the Southwestern Petrochemical Industry" .. 9; 1- 6 FEDERAL RESERVE DALLAS, BANK OF DALLAS TEXAS
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