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business
•
revIew

december 1966

FEDERA lL RESERVE
BANK Of" DALLAS
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

contents

socioeconomic profile of
houston area residents . .......... . . .. . . ..... .

3

southwestern agriculture
in 1966 ................ . ........ . ...... . .. .

9

petroleum trends in 1966 ..... . ............ . . . 12
district highlights . .. . ... . .. . ...... . .. . .. . ... , 16

socioeconomic profile of
houston a,-ea ,-esidents
Houston needs manpower for its industries,
stevedores for its port, and scientists to help
send men to the moon. Houston is well known
as a refining and petrochemical center, a major
port city, the location of NASA, and the site
of the Astrodome - an architectural masterpiece. The city is considered a good place to
live and a good place to work. What type of
people live in Houston?
The 1960 population of the Houston standard metropolitan statistical area - including
residents in the counties added when the area
Was redefined in 1965 1 - totaled 1,418,323,
ranking the area 16th among all SMSA's in the
Nation. Between 1950 and 1960, the area's
population had increased 51.6 percent, or at an
average annual rate of 5.16 percent. Net civilian migration between those years added
235,405 new persons to the total population.
The U.S. Bureau of the Census estimates that
the Houston SMSA population increased another 277,000 persons, or 19.5 percent (an
average rate of 3.9 percent annualJy), between
1960 and mid-1965 to reach a total of
1,695,000.
Data on net migration are not available for
the entire period between 1960 and mid-1965,
but the Bureau of the Census has estimated the
aggregate net migration for the Houston area
between 1960 and mid-1964. Based upon the
assumption that the proportion of net migrants

-

1 Only Harris County was included in the 1960 area
definition; but in 1965 the Houston SMSA was redefined to include Brazoria, Fort Bend, Liberty, and
~ontgomery Counties. The addition of these counties
IDcreases the 1960 Houston SMSA population by
175,165.

to the total population increase remained the
same between 1964 and mid-1965, net migration is estimated to have contributed about 49
percent - approximately 135,000 personsto the total population increase in the Houston
SMSA during the period from 1960 to
mid-1965.
Expanding economic activity in the Houston
area has provided good employment opportunities for both old and new residents. With the
decrease of the unemployment rate from 4.5
percent in 1960 to 2.9 percent in July 1966,
Houston attained one of the lower unemployment rates among the 150 major U.S. labor
market areas. In only 27 of the other major
labor market areas was the unemployment rate
lower than in Houston.
According to the U.S. Department of Labor,
as of January 1966, almost 86 percent of the
job openings for workers in professional, technical, and managerial occupations in the area
had been unfilled for 30 days or more. The proportion of unfilled positions for such occupations was more than double that for all occupations. The high percentage of job openings
unfilled for 30 days or more indicates a definite
shortage of persons with the necessary skills.
The following discussion provides a profile
of certain significant population and employ-

This is the second of a series of articles
discussing selected population and employment characteristics of various metropolitan areas in the Eleventh Federal
Reserve District for which the necessary
data are available.

business review / december 1966

3

the increase in the proportion of the population
in the 5- to 14-year age group. The growing
importance of this particular age group contrasted with the substantially reduced importance of the 25- to 44-year age group. The other
age groups experienced minor changes in relative importance.

ment characteristics for the Houston SMSA,
based upon census data for the 1950-60 period.
Comparable data detailing the socioeconomic
composition of migrants are not available for
the years since 1960; consequently, it is not
possible to determine if migration patterns evident during the decade of the 1950's have persisted into the 1960's. Data on population
growth and employment through the midsixties
suggest that the Houston area has remained a
sufficiently attractive labor market to retain its
residents and to attract additional out-of-area
job seekers.

Nearly 16 percent of the 1960 residents in
the 5-14 age group can be attributed to net
in-migration during the 1950-60 period. In the
Houston area, as in other economic and geographical areas in the Nation experiencing a
significant net in-migration of population, the
5- to 14-year age group showed large numerical
and relative increases. These increases reflect
the very high birth rates which occurred after
World War II. Net migration of youngsters in
this age bracket is, of course, dependent upon
the migration of their parents.

age composition
Between 1950 and 1960, the population of
the Houston area became relatively younger.
During this period, the median age for females
declined from 28.5 years to 27.3 years, and for
males it declined from 29.0 years to 27.0 years.
Thus, although the median age in 1950 was
slightly lower for females than for males, the
reverse was true by 1960. In the case of both
males and females, one of the more prominent
shifts occurring between 1950 and 1960 was

The relative importance of net migration to
the age composition of the resident popUlation
during 1955-60 is indicated in data provided
by a special survey conducted by the Census
Bureau on migration to and from selected

1955·60 IN·MIGRANTS AS PROPORTION OF 1960 RESIDENT POPULATION,
BY SEX AND AGE GROUP
HOUSTON STANDAR D ME
TROPOLITAN STATI STI CAL AREA
MALES

AGE

~

FEMALES

I

5 To 9 Years

L.:

10 To 14 Yea rs

""i};,q

r

15 To 19 Yea rs

~

p

20 To 24 Yea rs

icc:

I

""",,,,'

I

25 To 29 Yea rs

~

.,~I

30 To 34 Yea rs

~

35 To 44 Yea rs

p

G

45 To 54 Years

~

55 To 64 Yea rs
65 And Over

+15

+10

SOUHCE: u.s. Bureau ul the Census.

4,

+5

o

- 5

p

p

0

+5

PERCENT OF 1960 PO PULATION TOTAL FOR AGE GROUP, BY SE
X

+10

+15

-

+20

SMSA's. The data show that 13 percent of the
1960 population in the 20-24 age group was
not living in the Houston area (which included
only Harris County at the time of this survey)
prior to 1955. In the case of the 25-29 age
group, 9.7 percent was not residing in the area.
A particularly striking development revealed ·
by the census data was the net out-migration although relatively small in magnitude - displayed by the male 15-19 age group as contrasted with the in-migration of other young age
groups. The net effect of the migration pattern
Was to increase the youthfulness of the area's
population by reducing the median age of the
residents 5 years or more of age to 31.4 years
from the 31. 7 years it would have been withou t
migration.
The 15-19 age group's net out-migration of
1,577 males - which resulted from two opposite flows, a net out-movement of 1,842 whites
and a net in-movement of 265 nonwhites - is
not readily explicable, although some presumptions concerning the reasons for this exceptional
phenomenon might be advanced. One is that,
as of 1960, the University of Houston was not
a fully State-supported institution of higher
learning. This fact might have induced some
students to seek a college education in Statesupported institutions located elsewhere.
It is also quite possible that many of the
teen-agers were of post-high school age and
Were relatively new entrants in the labor market; and better job opportunities at this particUlar time may have been more readily available
elsewhere. In 1960, for example, the unemployment rate for males in the 15-19 age group was
11 percent, compared with a crude estimate of
15 percent if no migration had occurred. (This
estimate assumes that participation in the labor
force would have been proportionately the same
for those 15- to 19-year-old males in Houston
during 1960 and for the 1955-60 out-migrants
in the age group had they remained residents.)
The comparable 1960 unemployment rates for

THE CHANGING AGE STRUCTURE
BETWEEN 1950 AND 1960
HOUSTO N SMSA

AGE

IFEMALES

MAtES

Under 5 Yea rs

r

3/

I

I

5 To 14 Yea rs

I
.'1

r

15 To 24 Yea rs

I

I

L

25 To 44 Years

r

It

I
J

r

45 To 64 Yea rs

I

B

65 And Over

1950

E
40

30

20

10

0

1960

10

20

30

40

PERCENT OF POP ULATI ON TOTAL FOR EACH SEX
SOUR c r : u.s. Bureau ot the Cen sus,

male residents in this age group were 12 percent for all urban areas in the State and 8 percent for Dallas. Thus, the net out-migration
from Houston by young males may have been
stimulated, in part, by the existence of better
employment opportunities in other growing labor market areas.
The overall rate of net in-migration for Houston between 1955 and 1960 was somewhat
low. The rate was pronounced in only one
group for each sex, indicating considerable age
selectivity in employment opportunities for
in-migrants. Male migrants comprised a relatively substantial part - nearly 12 percentof the 1960 male residents within the 25-29
age group. Female migrants composed about 15
percent of the 20-24 age group for female residents - a somewhat larger proportion than
that for any of the other female age groups.
During the 1950-60 period, the net gain to
Harris County from civilian in-migration was

business review / december 1966

5

EMPLOYMENT IN MANUFACTURING
Houston Standard Metropolitan Statisti cal Area l
1958

Employm ent ch a nge from
previous year (Percent):
Tota l manufacturing .. . .. . . . . . . . . .. . ..
Dura bl e manufacturing
........
No n durable man ufacturing . . . . , , , . .

.

.
.

1959

1960

1961

1962

1963

1964

1965

103.0
4 8 .9
54. 1

It em
Employm ent (In thousa nds):
Tota l m anufacturing
Durable manufa cturing .
Nondurabl e manufa cturing .

103.3
50.5
52.8

104.0
50 .2
53 .8

103.6
50.4
53 .2

106.4
52. 6
53.8

106.7
53 .2
53.5

111.3
56.5
54.8

116.0
60 .4
55 .6

n.a .
n.a.
n.a.

.3
3.3
- 2.4

.7
- .6
1.9

-.4
.4

2.7
4.4

-1.1

1.1

.3
1.1
-. 6

4.3
6.2
2 .4

4.2
6.9
1.5

1965 SMSA d efinition .
n. a. - Not availab le.
SOURCE: U.S. Depa rtment of Labor.

1

220,731, of which only about 16 percent took
place in the latter part of the decade. The lessening of the in-migration ensued from the general economic recession of 1957-58 and, in
particular, the employment reduction in the
petroleum industry arising from (1) the abrupt
decline in output associated with the end of the
Suez crisis in 1957 and (2) the very substantial
increase in output per man-hour eventuating
from the sizable investment boom which culminated in 1957. A consequence of the modernization coming out of that investment boom
was reduced labor requirements, especially for
production workers.

old and over is higher than the 10.9 years for
the combined population in all urban areas in
Texas. The proportion of Houston's population having 12 years or more of education43 percent - was about the same as that for
the State's total urban popUlation.

M ed ia n schoo l
years comp leted

10.5

As suggested by data on employment in manufacturing industries, the Houston area did not
manifest renewed strength in employment until
1962. Total manufacturing employment had
exhibited a sidewise drift from 1958 through
1961, being depressed by adverse conditions
in fabricated metal products, chemical, and
petroleum industries. By 1964, however, manufacturing employment began to rise vigorously ;
and the area's population, as of July 1965, was
growing at an average rate of 3.6 percent (compounded annually), compared with 3.4 percen t
during 1960-64.

Un der 8 yea rs .
8 y ea rs
9 to 11 y ears .. .
12 ye a rs . . ...... .
13 t o 15 y ears .
16 yea rs or more .

98.3
97.8
98.1
96.8
95.6
92.7

educational characteristics
Houston's residents are comparatively well
educated. The 11.1 median years of schooling
completed, as of 1960, by both sexes 14 years

COMPARATIVE IMPORTANCE OF 1960
RESIDENTS 25 YEARS OLD AND OVER,
BY EDUCATIONAL LEVELS
Houston SMSA
Yea rs of
sc hoo l
comp leted

Perce nt ag e in
educ atio na l level
_
Nonmigra nts
In .mi g ra n ~
12.7

1.7
2.2 .
1.9
3.2
4.4
7.3

' 1955·60 .
SOU RCE: U.S. Bu re au of t he Censu s.

In-migration produced a noticeable improvement in the area's educational level. In 1960
the median years of school completed by the
migrant population 25 years old and over was
12.7 years, compared with 10.5 years for nonmigrants. Further, the proportion of the 1960
resident popUlation accounted for by inmigrants was higher for those with 12 years or
more of education than for those with less than
12 years. It was distinctly higher for those
completing 16 years or more of schooling.

Since 1960, the professional and technical requisites accompanying the evolution of the
NASA space complex have very likely engendered a considerable further increase in the
educational level of in-migrants.

employment shifts among the various occupations, ensuing from both a shift in the Houston
area's industrial structure and a change in the
occupational needs within its industries.
Between 1950 and 1960, there was a strong
shift in male employment toward professional
and technical workers - a development which
is in keeping with the existence of capitaJintensive and technologically oriented industries
in the Houston area. The occupations in which
employment was considerably smaller than expected were laborers and craftsmen. The weak
showing made in the employment of laborers
provides a bleak outlook for the unskilled
worker. Similarly, the sllift in female employment was toward professional and, in particular, clerical occupations. Clerical positions
substantially exceeded other occupations as a
source of employment for women.

occupational structure
Occupations derive their relative importance
from not only the industry mix in a Jabor market but also the mix of occupational employment within the various industries. Thus, both
the shifting character of employment within
each industry and the structural changes among
the industries influence changes in the occupational composition of employment.
The accompanying table indicates the number of people employed in the Houston SMSA
in 1950 and 1960, classified by both occupation and sex, together with the differences between the actual 1960 employment and the
employment that would have been expected if
employment in each occupation had grown at
the same rate between the 2 years as did total
employment. The table shows the effect of

As a result of these shifts, the aggregate income level of the labor force improved. This
would have been the case whether or not income levels within the occupations had risen,
because the occupations into which people

SHIFTING IMPORTANCE OF SELECTED NONFARM OCCUPATIONS

Houston Standard Metropolita n Statistical Area

-

MALE EMPLOYMENT

FEMALE EMPLOYMENT
1960

1960

Occupation
Professional, technical,
and kindred workers .
Managers, officials,
and proprietors ..
Clerical and kindred
workers
Sa les worke'r~ ' ..........
Craftsmen, foremen, and
kindred workers .....
Operatives and kindred
workers
Private hou~~h~r'd' .
Workers
Serv!ce work~~~, ~~~~~t' ..
Private household ...
Laborers, except mine .
TOTAL

-b

J.

1950
actua l

Actual

Differential
shift
Expected! Negative Positive

22,420

39,156
39,330

40,703

17,796
18,024

23,664
25,230

23,328
23,627

52,092

63,545

68,285

43,104

58,168

56,505

336
1,603
4,740
1,663

10,928

19,828

16,522

6,147

7,633

1,486

29,950
8.442

51,508
11,618

45,280
12,763

1,145

1,308

1,373

Actual

5,049

9,766

29,390

31,051

Differenti a l
shift
Expected' Negative Positive

1950
actual

1,593

1,977

384

8,657

9,701

13,088

3,387

3,306

6,228

571

593

748

155

13,591

17,103

20,548

3,445

15,909
24,333

20,433
25,218

20,854
31,897

421
6,679

14,135
576

21,809
745

21,370
871

126

225,300

295,337

295,337

13,368

92,636

140,052

140,052

9,973

13,368

439
9,973

The number that wou ld have been employed in 1960 if employment in the occupation had shown the same rate of change

e~'Oeen 1950 and 1960 as tota l employment for all the occupations.
URCE: U.S. Bureau of the Census.

business review / december 1966

7

the migration component of each of these
categories was related to the differenti al employment shifts among these categories.

1955·60 MALE IN·MIGRANTS AS
PROPORTION OF 1960 MALE EMPLOYMENT,
BY NONFARM OCCUPATIONAL GROUP
HOUSTON SMSA

summary

OCC UPATION
Professiona ls,
Tec hnicians

l

moved required more training and skill and,
consequently, paid higher wages.

After an apparently slight hesitation in its
expansion between 1957 and 1961, the Houston area appears to be reaffirming the dynamic
growth qu alities it had displayed prior to 1957.
The area's growth has been especially strong
since 1964. With an increasingly young and
(compared with residents in the State as a
whole) well-educated population, the Houston
area possesses an asset favorable to its continued advance. Houston seems to be in an
excellent position to continue attracting young
and well-educated workers. Much of its industrial base is technically oriented; its port will
provide the opportunity for the city to become
an expanding domestic and foreign trade center; and the location of NASA at Houston will
generate both direct and indirect employment
opportunities. Except in the case of the unskilled, increasing employment opportunities
have utilized a broad range of the abili ties and
skills of both old and new residents.

The proportion of male in-migrants during
1955-60 to the total 1960 male employment in
occupational groups can be derived from special
census data. Similar data for female in-migrants
are not available. In the Houston SMSA, male
in-migrants were prominent in four broad occupational categories. These were professional,
technical, and kindred workers; clerical and
kindred workers; sales workers; and operatives
and kindred workers. A considerable part of

These characteristics combine to provid e a
favorable labor market for continuous expansion of a wide variety of business and industrial
concerns in the Houston SMSA. Such a favorable labor market is indicated by the fact th at
manufacturing employment in the area increased from 104,000 in 196.0 to 122,100 in
July 1966 - or 17.4 percent.
C. HOWARD D AVIS
Industrial Economist

t=J

Managers,
Officia ls
Clerica l
Workers

I

Sa les Workers
Craftsmen,
Foremen

I

l

Opera tives
Service
Workers

l

Labore rs

I
I

Not Reported

o

5

10

15

PER CENT OF TOTAL 1960 MALE
EMPLOYMENT IN GR OUP
SOUACE; U.S. OUfC\1U of the Census.

new
pa..-

bank

8

The Texas State Bank, Joaquin , Texas, an insured nonmember bank located in
the territory served by the Houston Branch of the F ederal Reserve Bank of
Dallas, was added to the Par List on November 10, 1966. T he offi cers are:
C. Webb Dean, President; J. H. Black, Vice President; Walter C. Rainbolt, Vice
President and Cashier; and Mrs. Dorothy Graves, Ass istant Cashier.

southwestel-n
agl-icultul-e
inl966
Production of agricultural commodities in
the five southwestern states this year is at a
high level but will be moderately less than last
year's bountiful harvest, which set an aU-time
record. The output of crops is estimated to be
13 percent below that in 1965. A large part
of this decline is accounted for by the reduction
in cotton output, resulting from participation
of growers in the Government cotton program.
In contrast to crop output, livestock production
is likely to be 6 percent larger than the 1965
total. The high level of agricultural output,
relatively favorable farm product prices, and
sigllificantly larger Government payments are
expected to boost gross income above the $4.8
bi ll ion mark reached last year.

diverting up to 35 percent. The 1966 acreage
for harvest is more than one-fourth below that
of last year. The crop will be materially smaller,
mainly because of the reduced acreage; in addition, yields are expected to be slightly lower.
The basic support price for Middling grade linch staple-length cotton lint was set at 21 cents
per pound for the 1966 crop, as contrasted to
29 cents per pound for the 1965 production.
However, two direct payments were made to
farmers to help offset the reduction in the basic
support price and maintain income of cotton
producers near that in 1965.

CROP PRODUCTION in the Southwest is
largely dependent upon the performance of
four major crops - cotton, sorghum grain,
wheat, and rice. These crops account for the
overwhelming proportion of p lanted acreage,
as well as cash receipts from the sale of crops.
In addition to the impact of differential growing conditions, an important influence upon
production of the four crops is Government
programs. Changes in these programs have had
a noticeable effect on cotton and rice output
this year.

Production of sorghum grain, the basic feed
grain of the Southwest, has shown a substantial
increase, rising 14 percent above last year's
outturn. The acreage planted to the crop was
8 percent greater than a "year earlier, and timely
rains have resulted in record yields. The outturns of other feed grains - barley, corn, and
oats - are below last year's levels as the result
of poor growing conditions and acreage reductions, but the exceptional grain sorghum crop
will boost total feed grain production 10 percent above that in 1965. Consequently, sorghum grain is expected to account for 82 percent of the total feed grain supply in the region
in 1966.

Cotton production in Arizona, Louisiana,
New Mexico, Oklahoma, and Texas is expected
to total 4.8 million bales, or 27 percent below
the 1965 output. In order to participate in the
1966 cotton program, farmers were required
to divert a minimum of 12.5 percent of their
acreage aUotment, but they had the option of

A shortage of soil moisture in the major
wheat-producing areas of the Southwest during
the winter and spring months resulted in a crop
smaller than the bountiful 1965 harvest. Louisiana was the only southwestern state to show
an improved output. Oklahoma - the major
producer of wheat in the Southwest - har-

business review / december 1966

9

vested a crop considerably below that of a
year ago.
In contrast to wheat output, rice production
was 5 percent above a year earlier, due entirely
to an increase in acreage. Rice acreage allotments have been in effect each year since 1955;
and in 1966, growers were permitted to plant
additional acreages in order to provide supplies
to meet world food demands. The heavy spring
rains and below-normal temperatures retarded
the development of the crop; furthermore, a
large part of the acreage had to be replanted.
As a result of these unfavorable growing conditions, the per acre yield of rice failed to exceed that in the previous season for the first
time in several years.
A sharp increase in the production of citrus
fruits and a severe dip in pecan output have
highlighted developments in fruit and tree nut
production this year. Citrus output in the Lower
Valley of Texas continued to rebound from
the level to which it dropped in 1962, when
trees were severely damaged by freezing
weather. Both the larger number of trees and
the increasing size of young trees have conA sharp dip in cotton production in the
Southwest reduced total crop output • ..

I

c:

I

PERCENT CHANGE,
1966' FROM 1965

RICE

C

OATS

P
CORN

PEANUTS

J.I

I

COTTON

I

SOR+UM GRAIN

II

WINTER

C

W~EAT

BARLEY

HAY

-30

-20

- 10

"Indicated Nove mber ) .

SOURCE: U,S. Oepartment 01ASriculturc.

10

o

+10

+20

tributed to the uptrend in production. On the
strength of the materially larger Texas crop,
citrus output in the Southwest is indicated to
be 13 percent higher than the 10.8 million
boxes in 1965. Peach and pear production also
was significantly higher than last year, but the
pecan harvest was considerably smaller since
the crop was damaged by insect infestations
and adverse weather.
The LIVESTOCK SITUATION in 1966 has
featured favorable prices and the best grazing
conditions in several years. Range and pasture
grasses responded to improved soil moisture
throughout most of the Southwest, and roughage supplies have generally been good. The
need for supplemental feeding was reduced,
and stock water was adequate throughout
the year. In addition, a very good hay crop,
equaling the year-earlier output, was harvested
in 1966. The large forage supply is a very encouraging factor in the livestock outlook.
The greater number of beef cattle on farms
and ranches and an increase in the number
being fed were major factors in the higher output of livestock in the Southwest during 1966.
Encouraged by generally favorable prices, feedlot operators have tended to utilize a greater
percentage of their lot capacities.
As a result of the increased number of
cattle slaughtered and higher average slaughter
weights, red meat output advanced over a year
ago. The number of cattle and calves slaughtered during the first 9 months of this year was
3 percent larger than in the corresponding 1965
period, and liveweight was 5 percent greater.
Although there was virtually no change in the
lamb crop, sheep and lamb slaughter rose 3
percent, and poundage increased 7 percent.
However, hog slaughter declined.
The output of poultry in the Southwest likely
will set a new record. Egg production is estimated to be little changed from that in 1965,
but turkey and broiler output is expected to be

moderately higher. Although Arizona is not a
major poultry producer, the increase in the
State's egg production has outstripped the gain
registered by any other southwestern state.
Broiler output each year has consistently exceeded that in the prior year, and 1966 production may be 10 percent above the 1965 total.
Wool production in the Southwest advanced
2 percent during 1966, and mohair output
increased for the 14th consecutive year. Reversing the downtrend begun in 1962, sheep
numbers in the region were 7 percent larger
at the beginning of 1966, with all of the southwestern states except Louisiana reporting a
larger inventory than a year earlier. Goat numbers in Texas rose 9 percent over the previous
year. Milk production in the Southwest is likely
to be little changed from a year ago, but output
per cow has increased since milk cow numbers
declined again this year.
Favorable livestock prices have been the
principal factor in maintaining the overall level
of farm product prices above a year ago, as
the aggregate level of crop prices has been
slightly lower. The improved prices for livestock and some crops have contributed to the
significant advance in cash receipts from farm
marketings. Larger Government payments also
will raise the gross income of southwestern
farmers and ranchers.
Total NET FARM INCOME in 1966 is expected to be moderately above that in 1965,
and the division of the larger income among
the smaller number of farmers will result in a
higher average income per farm . Moreover, with
land values continuing upward, equities of landOWners have increased. Consequently, the financial position of most fanners and ranchers likely
has improved over a year earlier.
AGRICULTURAL PROSPECTS for 1967
are bright. Fall seedings of small grains for next
year's harvest have been completed, and soil
moisture has been adequate thus far. Heavy

Major factors in the increased livestock
output in the Southwest were the gains
in cattle and poultry production • ..

I

EGGS

PERCENT CHANGE,
1966e FROM 1965

P

MILK

I

WOOL
MOHAIR

I

I

I

BROILERS

I
TURKEYS

I

J

CAITLE
LAMBS

o

+2

+4

+8

+10

Il-Partlyesllmatcd,
SOURC[,S: u,s. DCllarlmcnl 01 AJ;fl cullu re.
federal Reserve Bltnkol Dalln.

rains during the year have provided ample runoff to replenish stock water; moreover, increased water supplies in reservoirs used for
irrigation purposes have reached the best levels
in several years. The demand for most agricultural products remains strong.
There will be only minor changes in Government programs, and such changes will largely
entail an increase in the acreage farmers will
be permitted to plant to grain crops. The tight
world food situation has been reflected in a
strong grain market, and stocks have been reduced to what are considered to be minimum
levels. Therefore, additional acreages may be
planted in order to increase grain production
and replenish supplies.
Cotton is the only major southwestern crop
in excess supply. A somewhat better balance
between cotton stocks and consumption seems
likely, however, if domestic consumption and
exports continue at high levels next year.

J. C. GRADY, JR.
Senior Economist
(Agriculture)

business review / december 1966

11

pet,-oleum t,-ends
i" J966
Output in the petroleum industry has been
moving to a higher level each succeeding year,
and 1966 is no exception. A growing population, rising incomes, and increasing industrial
activity - not to mention a continued uptrend
in travel via both private automobiles and commercial carriers - have all contributed to an
ever-greater demand for petroleum products.
Thus, in 1966 the demand for jet fuel and for
residual fuel oils (used heavily by utilities and
industrial concerns and in ocean transportation) has advanced sharply, and consumption
of distillate fuels (used mainly for diesel engines
and space heating) has risen further. Gasoline
sales surpassed expectations during the summer; and with the higher gasoline prices, the
final 1966 profits picture for the oil industry
should be enhanced.

aged around 5 percent higher than for the same
period in 1965, with all the major categories of
products sharing in the advance. Despite the
airlines strike in the summer, jet fuel consumption rose the largest amount, 8 percent, and residual fuel oil demand was a close second, increasing almost 8 percent. Distillate fuel made a
relatively weak gain, but consumption was still
3 percent above the large volume used during
the first 9 months of 1965. A particularly significant factor in the rise in total demand for
all oils was a 5-percent gain in the consumption of gasoline, the petroleum industry's most
important single product. The increased industrial activity associated with the Viet-Nam war
and the requirements of the Armed Forces have
both contributed to the rise in the demand for
petroleum products.

During the first three quarters of this year,
total DEMAND for petroleum products aver-

Like many other products, petroleum bas
both seasonal and erratic variations in its
demand pattern. Winter weather noticeably
increases the demand for distillate fuel oil for
heating, and this past winter was no exception.
January was unusually cold, and the demand
for distillate was over 3 percent higher tban in
tbe same period in 1965. Although heating oils
usually dominate the rise in the demand for
petroleum products during the winter, kerosene
and gasoline usage was the pacesetter last
winter. The demand for petroleum products
during February reached an all-time high of
13.2 million barrels per day.

INCREASE IN PETROLEUM DEMAND
UNITED STATES

I

I

I

I

I

I

ALL OILS

JET FUEL
DISTILLATE
FUEL OIL

I

I

I
o

I

I

2

I

I

U.S. Bureau of Minn.

12

I

I

4

PERCE NT INCREASE, JANUARY- SEPTEM BER
SQ URCl S: Ame rl e.1n Petroleum In stitute.

I

1965 OVER 1964
1966 OVER J 965

I

GASOLIN E
RESIDUAL
FUEL OIL

B

6

8

Demand for petroleum products usually is
the lowest in May, the span between the end
of the heating season and the beginning of
summer, with its attendant increase in gasoline
sales. During May of this year, however, there

was unseasonably cold weather, and the demand for heating oils remained high. As a
result, demand for oil products reached a level
that was 6 percent higher than in May 1965.

CRUDE OIL FLUCTUATIONS
UNITED STATES
THOUSANDS OF BARRELS DAILY

9,700
I

During the summer months, demand for petroleum surged upward. Because of the airlines
strike, a large number of vacation trips (made
possible by the high level of personal incomes)
were taken via automobile this summer. As
early as June, the demand for gasoline reached
an all-time high of 5.5 million barrels per day
and was almost 7 percent more than in the
same month last year. Usage of distillate and
residual fuels also showed heavy increases during the summer, reflecting the very high level
of business activity. Industrial production averaged almost 10 percent higher than during the
SUmmer of 1965 . During August, residual fuel
experienced the heaviest demand of any August
since the Korean War.
The airlines strike this past summer will be
remembered by many air travelers as a particularly disrupting and inconvenient interlude, but
the petroleum industry felt the impact of the
strike through a reduction in the sale of aviation fuel. During the first 6 months of this year,
the demand for jet fuel was running well above
the same period last year. However, in July and
August, jet fuel consumption fell almost 4 percent below the level for these 2 months last
year. In September, with the airlines strike
over, demand for aviation fuels showed a strong
percentage rise over the year-earlier figure .
Without the interruption of air travel on many
of the Nation's major carriers during a large
~ortion of the summer vacation period, the gain
1O consumption of jet fuel would have been
Significantly higher than the 8-percent gain that
has been achieved thus far this year.
September is normally a transitional month
for the petroleum industry. After the Labor
Day weekend, vacation travel falls off, and the
industry switches to the production of heating

I

9,500
I

I

I

I

I

I

I
I

9,300

I

\

,

,

9, 100

I

I
I

.:

CRUDE OIL RUNS
TO REFINERY STILLS
8,900

8,700
MILLIONS OF BARRELS

+15

r-

I""

+ 10

CHANGE IN
CRU DE OI L STOCKS

r

.....
I-.

+5

n

o

L

-5

J

1-1-

'"""

p c

UL

L

l-

-10
I
- 15

1965

1966

p-Pfcllmin!l fY·
c-Eslimated.

SOURC£S: American Pel/oleum Inslltutc.

u_s. BUlcau 01 Mlne1!o
redelal Ruetll!! Dank 01Dallas.

oils in anticipation of the coming winter. During September of this year, the demand for
distillate oils (made up largely of heating oils)
was the lowest in 4 years; however, demand for
residual fuels was the highest for any September since 1953. The strong demand for residual, together with the high-level consumption
of most other petroleum products, has kept
total demand well above a year earlier.
The total SUPPLY of all petroleum products
was consistently higher during the first 9 months
of 1966 than during the same period last year.

business review / december 1966

13

Crude oil production, for instance, averaged
about 7 percent higher, and crude runs to refinery stills were higher. In the Eleventh Federal
Reserve District, the gain in crude oil production paralleled that for the Nation, and the 3.4percent rise in crude runs to stills was only
slightly smaller than the national increase. As
in the past, some of the expansion in supplies
this year has been met by imports. U.S. imports
of refined products during the first three quarters of 1966 were approximately 9 percent
above the same period last year. In contrast to
refined product imports, crude oil importations
were around 3 percent smaller.
January's large supply of petroleum products was soon overshadowed by February's
showing, as both oil imports and domestic production scored further gains; and supplies during the first quarter of the year were at a record
level. Texas, Louisiana, and California primarily accounted for the increases in production. Nationally, crude runs to refinery stills set
an all-time high in January of 9.4 million barrels per day, a record that was to be broken
during the summer.
Petroleum inventories began to rise early in
the year. In March, stocks increased contraseasonally by 4 million barrels, and the inventory buildup continued through April. Normally, inventories do not increase until the
latter part of April. The rise in stocks was
centered in crude petroleum, and some concern was shown over the mounting size of crude
oil inventories. In contrast, gasoline inventories,
which usually reach a seasonal high point toward the end of March, were lower than
normal. In the case of other petroleum products, inventories accumulated somewhat during
the early summer; but for most products, the
changes were seasonal.
Beginning in July, the inventory picture did
not follow the typical seasonal pattern. Gasoline inventories shrank at a much faster pace

14

PETROLEUM OPERATIONS
ELEVENTH FEDERAL RESERVE DISTRICT
PRODUCTIO N AND RUNS
COMPLETIONS
NUM BER OF WELLS

THOUSA NDS OF BARR ELS DAILY

3,600

1,600

,,
,, -",
,

., ,

3,400

1\ ,

\

....... "

A,' "
\

,

1,400

,

....... -

\:

"\
I,

'\

\

I
... 1

•

:

,

,

CRUDE OIL PRODUCTION

"
"
"

I:

I I

3,000

TOTAL WELL COMPLETiONS

,

'\\
"

1,200

,,
,
,

~

:

,

1,000

I

1/

p

800

p-Prellmln. ry.

SOURC[S' Amedean Peltoleum Institute.

lll< Q!lwGAl.1WJl4l.

u.s. Ou ruu 01MInes.

r.der.1RtstrveOanko f OaUu.

than normally. On the other hand, inventories
of jet fuel increased rapidly because of the airlines strike, and distillate stocks also began to
accumulate. Crude oil stocks, which had been
a concern a short time earlier, began to ease
as a result of lower domestic production and
reduced foreign imports. By late summer, crude
oil stocks continued to decrease, but inventories
of refined products rose.
Despite the very high demand during the
early months of the year, the record supplies
of petroleum products undoubtedly worked toward an easing of PRICES for refined petroleum products. In January, there were price reductions for gasoline on the Gulf Coast and for
residual fuels in the Middle West, and a reduction occurred in March in the price of heating
oil. However, by spring, prices for refined
products began to rise; and additional pri~e
increases were noted in the late summer 1ll
wholesale markets for gasoline, distillate, and
kerosene.
Crude oil prices have been quite stable during the midsixties. In the 14-month period
ended in February 1966, the monthly average

price for a barrel of crude was $2.96. The price
increased 1 cent per barrel in March and remained unchanged until September, when there
was an advance of 2 cents per barrel. The
September increase occurred initially in the
Middle West, although crude prices in the
Southwest were not far behind. Price advances
for crude are being attributed to the enlarged
demand for gasoline and heating oil. Refineries
seemed to be hard pressed in October to find
enough crude to meet all demands, and this
situation has imparted continued strength to oil
prices.
Since the 1950's, DRILLING ACTIVITY in
the United States has been declining continuously. The year 1966 is no exception because
the number of new wells completed, the total
footage drilled, and the number of active rigs
have all declined. According to American Petroleum Institute data, new wells completed during the first 9 months in 1966 totaled 26,108,
or 16 percent fewer than in the similar period
last year. In the major producing states of the
District-Texas, Louisiana, and New Mexicothe number of new wells completed also dipped
sharply. Total footage drilled in the Nation decreased 17 percent, and the number of active
rigs eased further. In May, drilling activity
began to increase slightly and steadily; but by
September, activity had leveled off.
Numerous reasons are advanced for the
downtrend in drilling activity. A primary factor
seems to be the scarcity of new shallow oil
deposits, the type that was relatively easy to
drill in past decades. Now, drilling often must
b.e undertaken at marginal petroleum reserve
sltes. Consequently, although crude oil prices
remain relatively stable, the drilling of wells is
more expensive. Also, attractive alternatives
may have slowed investment in exploration and
drilling activity. Another factor, of course, has
been technological influences. Improved recovery techniques and the wider spacing of wells
mean that fewer wells are needed. As in the

past several years, the small, independent drilling firms have accounted for most of the drilling
decline. On the other hand, the major companies, as a group, have actually increased
drilling activity. Their effort has not been sufficient, however, to improve the total domestic
drilling picture. Moreover, many of the major
producers have been concentrating more heavily
on foreign exploration and development.
Preliminary data indicate that the PROFIT
PROSPECTS of oil companies this year appear
relatively favorable. According to The Oil and
Gas Journal, profits of the 24 largest firms
increased 13 percent during the first 9 months
of 1966 as compared with the same period in
1965. If the profits in the final quarter remain
at the same level as in the first three quarters,
total profits in 1966 will reach a record. The
survey indicates that, as a whole, domestic oil
companies have shown greater profitability than
the large international companies. Increased
demand for petroleum products at either the
same prices or slightly higher prices primarily
accounts for the gain in profits. Nevertheless,
other reasons have been cited for higher profits,
and these include the benefits now beginning to
appear from heavy capital expenditures in recent years and the withdrawal from lines of
activity which have shown relatively low profits.
The demand for crude oil and refined petroleum products will undoubtedly remain very
high throughout the remainder of the year. As
a matter of fact, crude oil output in midNovember was the highest for any period. Data
are not available showing the demand for major
petroleum products for the past month or so,
but various statements from industry sources
indicate that demand for jet fuel has remained
exceptionally high and the calls for heating oils
have been strong. At this time, it appears that
1966 will be one of the industry's most favorable years.
RAYNAL HAMMEL'FON

General Economist

business review / december 1966

15

dist,-ict highlights
Both the rate of growth and the timing of
change in business loans at weekly reporting
commercial banks in the Eleventh District varied considerably from the national pattern during most of the year. In the District, business
loans grew much less rapidly than in the Nation
in the first 8 months of the year. However,
since August, there has been a sharp moderation in the growth rate of business loans nationally, and the rate has increased slightly in the
Eleventh District. As a result, business loans in
the District and the Nation have grown at quite
similar rates since the end of August.

ally to 147.7 percent of the 1957-59 base but
was 8 percent higher than in the same month
last year. Durable goods manufacturing rose
1 percent over the previous month, with
strength being shown in primary metal industries and fabricated metal products. Stone,
clay, and glass products registered a mild output reduction. Nondurable goods manufacturing decreased more than 1 percent, as declines
occurred in petroleum refining and related
industries and most of the other nondurables
categories. However, output of paper and allied
products increased somewhat.

In the first 8 months of 1966, business loans
at the District's weekly reporting banks increased $100 million, or 4.3 percent. In the
same period, commercial and industrial loans
at the Nation's weekly reporting commercial
banks increased $7.7 billion, or 15.2 percent.
From August 31 to November 16, business
loans in the District rose $56 million, or 2.3
percent. In the Nation, such loans advanced
$1.9 billion, or 3.3 percent, during this period.

Soil moisture in the District states ranges
from adequate to short, and rain is especially
needed for most of the fall-seeded small grains.
With the exception of cotton, harvesting of fall
crops is nearing completion. Prices received by
Texas farmers and ranchers for all farm products during January-October averaged 6 percent above a year earlier. Cash receipts from
farm marketings in the District states for the
first 9 months of 1966 were 14 percent greater
than in the comparable period last year. Receipts from livestock advanced 22 percent, and
those from crops were up 4 percent.

Nonagricultural wage and salary employment
in the five southwestern states rose 0.7 percent
during October to reach 5,446,100, as the number of workers in both manufacturing and nonmanufacturing activities advanced. The gain
in nonmanufacturing employment was due entirely to a rise in government employment. The
work force in mining and construction declined,
while employment in other nonmanufacturing
categories was little changed. As compared
with October a year ago, total employment was
4 percent higher. Employment in manufacturing was 7 percent greater, and that in nonmanufacturing was almost 4 percent higher.
In October the seasonally adjusted Texas
industrial production index declined fraction-

16

New passenger car registrations in October
in four major Texas markets moved to a neW
high for the month and were 10 percent above
a year ago. During the first 10 months of 1966,
cumulative registrations for the four centers Dallas, Fort Worth, Houston, and San Antonio
- were fractionally higher than in the same
period in 1965.
Department store sales in the Eleventh District for the 4 weeks ended November 19 were
2 percent above the corresponding 1965 period.
Cumulative sales through November 19 thiS
year were 6 percent more than a year ago.

STATISTICAL StJPPLEMENT
to the

BUSINESS REVIEW

December 1966

FEDERAL RESERVE BANK
OF DALLAS

-

CONDITION STATISTICS OF WEEKLY REPORTING
COMMERCIAL BANKS

RESERVE POSITIONS OF MEMBER BANKS
Eleven th Federal Reserve District

Eleventh Federal Reserve District

(Ave rag es of daily figures. In thou sand s of dollars)

-

(In thousands of dollarsl

4 wee ks end ed

4 w ee ks ended

Item

Nov.30,
1966

Oct. 26,
1966

Dec. I,
1965'

ASSETS
Ne t loans and discounts .... ... .. . . . ... .. .. " . .
Valuation reserves . ... ... .. . ..... ... . ........
Gross loans and disco unts .. . . . . ..... ... ..... . .

5,027,374
89,583
5,116,957

5,040,566
91 ,33 1
5,131,897

4,787,900
7 9,899
4,867,799

Comm ercial and industrial loon s•. . . . ... . ... . .
Ag ricultural 100ns2 •.. •.•• • ••• •. . . . ... . • . . . .

2,495,845
80,968

2,492,7 12
83,635

2,178,638
63,710

463
36,991

7
40,304

1
41 443

848
328,474

1,015
332,906

2,488
302,995

Real estat e loans ...... ... ...... ... . . .. ....
Loans to dom estic comm erci al ban ks ., . . ..•... .
loan s to foreign ban ks ... ... . .. . .... ... .. ..
Consum er in stalm ent loans., ... .. .. . . .• .. .. ..
loans to for eign governm ents, official
institution s etc .• • .• .... . .. . ...... . .. . . ...
,
Oth er loans2•• • • • •••• ••• ••• • • , •• • •• •• • , • • •

151,235
254,892
468,729
171 ,299
5,265
617,794

154,798
259, 107
472,0 19
154,904
6,141
601,1 35}

131,135
296,226
441,938
164,905
3,710

0
504,154
2,255,061

2,208,165

1,087,073
30,915
15,548

1,074,870
46,434
16,842

625,63 2
5BO,354
45,278
620,349
5,283
89,157
- 83,874

629,344
583,151
46,193
62 3,112
6,23 2
68,587
- 62,355

609,454
565,2 87
44,167
605,24 3
4,211
21,096
- 16,885

640,682
489,002
151,680
604,836
35,846
10,072
25,774

631,402
477,642
153,760
596,330
35,072
15,896
19,176

601,152
457,383
143,769
565,268
35,884
8,680
27,204

1,266,3 14
1,069,356
196,958
1,225,185
41,129
99,229
-58,100

1,260,746
1,060,793
199,953
1,219,44 2
41,304
84,483
-43, 179

1,210,606
1,022,670
187,936
1,170,511
40,095
29,776
10,319

RESERVE CITY BANKS
Total rese rves held .. . ....... ..
With Fed eral Rese rve Bonk . . ..
Currency and coin .. . .. . ... . .
Require d reserves .. . . . ........
Excoss reserves .. . ... . . . ... . ..
Borrowing s• ... ... . .. .. ... ....
Free reserves. .. . ..... .. ... ...

2,203,645

Total U.S. Government se curities •.. . ..........

Oct. 5, 1966

1,261,407
140,477
0

Nov. 3, 196:"'-

533,214

Total inv estm ents . •... . .. . .. . ... . . . .... ... ...

4 w ee ks end ed

Nov. 2, 1966

Item

loans to broke rs and deale rs for
pu rcha sing or carrying:

U.S. Gove rnm e nt se curiti e s . . .... . . . . . .. .. .
Othe r securiti es ..... . . . . .. . ... . . . . ... . ..
Other loans for purchasin g or carrying:

U.S. Gove rnm ent secu riti es ... .. . .... . . ... .
Othe r securities ........ . ..... .. . .. ... . . .
Loans to nonbank flnancial in stitution s:
Sal es flnanc e, p ersonal finance, facto rs,
and oth er busin ess credit companies.. , ....

Other . • • • •••• • . ••... • •.. •• ..•• •••.. . . •

Tre asury bill s. .. . .. • •.. . . . . • , • • • . •• .. . . .
Tr ea sury ce rtiflcates of ind e bte dness .... . .. •
Tre asury notes and U.S. bonds maturing I
Within 1 ye ar •• .. . . . . • . ..• .. . .... . ...
1 ye ar to 5 y ears . . • ... ... . • . . . . , .•.. .

COUNTRY BANKS
Total rese rv es held .... . .. . .• . .
With Fed eral Reserve Bonk .. ..
Currency ond coin .. . . . ......
Require d reserves .. .. .. . .. . .. .
Excess rese rves .•. ... .... .. ...
Borrowing s. ... . .. .... .. .. . . . .
Free rese rves.. ... . . .. ... .. . ..

ALL MEMBER BANKS

o

Totol rese rves held .•... . . . .. ..
With Fed era l Rese rve Bonk .. ..
Currency and coin ... . .... . . .
Require d reserv es . . ..... . . . . ..
Excess rese rves . ... .... . . .... .
Borrowings .. . •. . . .. . .. . .. ... .
Free rese rves. . . ...... . ... . . . .

' 1,240,610

164,978
609,504
266,128

145,250
569,011
297,333

12,194
958,297

Othe r a sse ts. , • . .• • • . •...• , . •. . . . . . . . . . .. .••

89,672
67,996
810,271
59a.o29
77,197
464,622
4,426
320,750

833,706
520,528
64,941
462,893
4,262
317,782

TOTAL ASSETS •••••.•..••..• •• .•.......

9,561 ,457

9,524,026

Ele ven t h Fed e ral Re serve District
(Ave rag es of dail y figures. I n million s of dollarsl

960,886

86,714
110,783
813,255
546,669
75,306
504,690
4,233
334,869

GR OSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS

9,195,657

Afte r 5 ye a rs • • • •••• • ••••••••• •• ••••• •
Obligation s of states and political subdivisions:
Tax warrants and short-term notes and bills ...

All other ••• •••••• •• • ••• • •• • •• • • ••••• •••
Other bond s, corporat e stocks, and securities:
Pa rticipation certificates in Fe deral
ag ency 10ansJ ••••••••• • ••••• ••• • •••• •

All other (including corporate stocksl ••.. • • • •
Co sh it ems in process of coll ection • • . , ...•.. ... .
Rese rves with Fed eral Reser ve Bank •• ••.. . , .....
Cu rre ncy and coin ...... . .. . . ... .. . . .... .. ...
Ba lanc es with bonks in th e Unite d States . .. . .. . ..
Balances with banks in foreign countri es , •• , ... . .

""'}

176,629
603,563
340,738

=

TIME DEPOSITS

GROSS DEMAND DEPOSITS

942,238

Total

Reserve
city bonks

Country

Date

banks

Total

Rese rve
city bonks

Country
banks

1964: Octobe r • • •
1965: October • ••
1966: May • • .. .•

8,582
8,8 14
B,669
8,742
8,91 2
8,637
8,797
8,847

4,098
4,145
4,019
4,080
4,165
3,982
4,080
4,064

4,484
4,669
4,650
4,662
4,747
4,655
4,71 7
4,783

4,627
5,402
5,795
5,704
5,734
5,764
5,736
5,726

2,274
2,636
2,743
2,667
2,660
2,670
2,634
2,595

2,353
2,766
3,052
3,037
3,07 4
3,094
3,102
3,131

Jun e ... . ..

July ••• •. . .
August ... .
Sept emb er.

October •.•

CONDITI ON STATISTICS OF ALL MEMBER BANKS

LIABILITIES
Total d e posits • •. . . . ...... . .• • ... •.• •• ..... .

8,1 55,425

8,063,182

B,016,230

Eleventh Federal Re serve District

Total d emand deposits .. , . .... . .•.. . ... . . ..
Individuals, partn ers hips, and corporations•.. .
States and political subdivi sions . . . • .....• •.
U.S. Governm ent • ........•.. . .. ... . , ... .

5,003,044
3,379,385
362,654
66,091
1,112,732

4,906,839
3,456,504
267,B24
83,469
1,020,790

4,942,016
3,257,676
337,250
150,421
1,096,822

(In millions of dolla rs l

4,329
19,729
58,124
3,152,381

2,830
18,67 2
56,750
3,156,343

3,654
18,568
77,625
3.074,214

1,1 76,584
1,375,501
575,335
8,825
13,796

1,1 75,787
1,384,869
570,616
8,849
13,BB2

1,348,384
' 1,281,265
428,796
3,519
9,410

800
1,540

800
1,540

1,300
1,540

346,043
207,873

426,316
184,466

193,472
182,958

Banks In th e United States ••• • •• • ..• •••• . • •
Forei gn:
Gove rnm ents, offlcial in stitutions, etc ..... ..
Comm e rcial bonk s• ... .. .... • .. ..• .•. . .
Certifi ed and offlcers' ch ecks, etc ... . .. . . •..
Total tim e and saving s d e posits, • .••.• • , .... .
Individual s, partn erships, and corporations:
Saving s d e posits. , • ... ... ...••• •. .....
Oth er tim e d eposits• • . . . .. . ••• . •. , . . . . .
States and po litical subdivi sions . .... . . ... . .
U.S. Governm ent (including postal saving s) .. •
Banks in th e United States .. . .. . ...... .. '"
For eign:
Governm ents, official institutions, etc ... . ...
Comm ercial bank s, .. .. .. ...... ... .. . ..
Bill s pa y abl e, rediscounts, and oth er
liabiliti es for borrow e d money . ..... . ..... . ..

Other liabilities .••. • • .• • . • . •• .•• •.• • ••• . ••• .

852,116

850,062

802,997

TOTAL LIABILITIES AND CAPITAL ACCOUNTS

9,561 ,457

9,524,026

9,195,657

Be cau se of format ond coverag e revi sion s a s of July 6, 1966, earli e r data are not

full y comparabl e .
Ce rt ificates of partici pation in Federal ag ency loan s include Commodity Credit
Corporation ce rtificates of inte res t previou sly included in "Agricu ltural loan s" and
Export - I mport Bank parti ci pation s previou sly included in " Oth e r loons . "
a Amount includes depo sits accumulated for paym ent of in stalm ent loon s; a s a res ult
of a chan ge in Fede ral Reserve regulation s, e ffect ive June 9, 1966, such deposits are
no long er report ed .
2

2

=

-

Oct, 27,
1965

Se pt. 28,
1966

ASSETS

l oons and discountsl . .. . . . . . . , . • . . . . . . ..
U.S. Governm ent obligation s• •. . ... ... . • . .
Other securiti es l • •. . .. . . .. . •. , .. . . . . .. ..
Rese rves with Fe deral Reserve Bank ... . . ...
Ca sh in vault .... .... .. • .... ..... .. . . ..
Ba lances with bonks in the Unite d States • . ..
Balanc es with banks in foreign countriese .. . .
Co sh it ems in proc ess of coll ection . •.• .. .. .
Oth er asse tso . • .... .. .... . ... . ... . ... . .

8,623
2,273
2,224
1,001
225
1,055
7
906
498

' 8,647
2,233
2,201
937
227
1,028
6
867
483

TOTAL ASSETse •.• •• • • ... • .. • • • •....

CAPITAL ACCOUNTS • • •. ••. . • . . . • . ..••.• . .•.

1

Oct. 26,
1966

Item

16,812

16,629

Demond d e posits of bonks • .... ... ... ... .
Oth er demand d eposits. .. . . .. . .. .. ..... .
Tim e deposits••. , . ... .•...... .. . . .. . . . .

1,270
7,600
5,792

1,223
7,492
5,792

Total d eposit s . . . .. . .•. .•. . . . .. ... •..
Borrowing s. . .. .. ....... . ....•.. . .. . . ..
Other liobililiese . . ... ... . . •..... . .. . ...
Total copital accoun ts c ..... . .. ... . ......

14,662
436
251
1,463

14,507
412
257
1,453

TOTAL LIA81L1T1ES AND CAPITAL
ACCOUNTSe . .. . .. .. . ... . .. . .. ... .

16,81 2

16,629

8,210
2,45 1
1,85 4
872
211
1,10~
840
452

Jl,.99L

=--

LIA81L1TIES AND CAPITAL ACCOUNTS
1,31 2
7,442
5,432

-

14,186
200
22 2
1,389

~

----------------------------------------------------~ -! B
eginning June 15, 1966 , Commodity Credit Corporation ce rtificates of interest and
Export - I mport Sank participation s are
. 'loan s and discounts. "

e-

Estimated.

included in

" Oth er se curiti es, '

I

roth er thU

n

BANK DEB ITS, END-Of-M ONTH DEPOSITS, AND DEPOSIT TURNOVER
(Dollar amounts in thou sands, seasona ll y adjuste d)

DEBITS TO DEMAND DEPOSIT ACCOUNTS'
DEMAND DEPOSITS'
Percent change

Octob er
1966
(Annuol-rate
basis)

Standard metropolitan

statistica l area

$

ARIZONA, Tucson _••. . .•.•...•.•••••.•.•••...•.•.•••
LO UISIANA, Monroe • • •• .•• •••....••• .•• ••••...•. . .•
Shreveport _•. .••••.•••••...••••••.. . .•.•
NEW MEXICO, Roswell ' .•.. ....••••.......• . ••• .•• •.
TEXAS, Abilene ••••..•• • ••.•.. ••••.....••. • •.•••••..
Amarillo . ... . ••.••............. ... . . ........

Austin . ..... .. ............................. .
Beaumont-Port Arthur •••• .• ••... • •..•.• .• • • •• •
Brownsville- Harlingen-San Benito ...•.. . ..•.•...•

Corpus Christl' • •• ••..••••.....•••••••••• • .•• .
Corsicana :! ••. • • • ..•• • •.•..•••••..•••.....• • •
Dalla s ••••..•• •• •.•••• ..• .. . •.••••••••.•.•. .

EI Paso • •.•• • •••. ••••••••• .. • •••••• • ••••• • . •
Fort Worth •••.••••• . • • ••• • ..•.•• •• •••• ..••••
Golveston-Texas City • ••.••••••... .. • . • . ••• •••
Houston3 • ••••••••••••••••••••••••••••• • •••• .

lore do ...................... . ..... .. .......
Lubbock •.•••••••... •• ... .•.•••.... • . ..••...
Midland • .•• .. .•• •••••••.. • ••••......• •• . •..
Od essa • •••••••• . •• • • • •.• • •. . •••.•• .• • • • •• ..
San Angelo • • •.•• •• ..• •• ••• • .... ••• ••••• ••••
Son Antonio ..•... ... ... . .......... . .... , . . ..
Texarkona (Texas-Arka nsas) • • •••• • •••• •. •.. . •••
Tyler •• •• • • .••••••••••••••••••••••••••••••••
Waco ... ............ .... .. ... ........ . ... . .
Wichita Falls ••••• . ••• • ••••.••• • • ••••••••••• •
Total_26 centers •• • ••• • . •.• •••• ••..••••• • ••••••••••

Annual rato
of turnov ~r

Octob er 1966 from
September

1966

4,336,944
I,B34, I64
5,334,144
592,9BO
1,925,112
3,935,772
4,201,164
5,400,612
1,529,052
3,984,348
326,064
69,098,364
4,575,660
14,585,988
1,852,332
62,263,776
596,604
3,336,660
1,564,224
1,263,636
837,360
11,775,072
1,000,800
1,550,388
2,486,916
1,965,900

Octob er
1965

10 months,
1966 from
1965

$2 12, 154,036

7
2
10
- 11
9
0
6
5
12
9
-6
19
-1
16
-3
12
21
2
5
12
3
3
6
5
26
-1

2
9
11
4
9
9
8
12
9
8
11
17
2
11
2
13
12
7
-5
14
10
11
5
7
12
9

12

3
-3
-4
-5
-2
-10
0
1
12
0
14
4
-9
0
-14
0
0
-11
-2
2
0
0
-3
1
28
-3

Octob er 31,
1966

13

Octob er
1966

September
1966

Octob.r
1965r

24.9
25.6
24.7
17.6
21.6
28.5
22.7
25.5
26.0
21.5
11.2
41.3
23.3
29.4
20.9
32.3
18.9
21.9
13.4
19.6
14.9
23.6
18.5
18.9
23.3
18.0

$7, 106,1 15

24.9
25.4
26.0
18.4
21.8
31.B
22.5
25.2
24.7
21.6
10.0
40.5
25.7
29.5
23.9
32.2
19.8
23.9
13.8
18.8
15.3
23.8
19.1
18.8
18.5
18.6

24.7
23.5
24.1
18.9
20.1
27.9
22.1
25.2
24.7
20.7
12.1
36.1
22.9
25.7
21. 1
29.0
18.1
22.4
13.3
17.9
14.7
24.0
19.1
18.6
18.8
17.4

30.1

$ 172,195
71,354
220,162
33,320
90,137
138,716
186,536
208,784
59,841
185,762
29,728
1,698,603
205,362
493,447
87,78 1
1,940,9 14
31,686
151,839
117,793
63,518
57,823
506,664
54,231
82,158
107,214
110,547

30.0

27.5

Deposits of individua ls partnerships and corporations and of states and politica l subdivisions .
~ Coun ty basis.
'
a Revised (1 965) SMSA bo undari.s.
r Revised .

1

I

MAR KETED PR ODU CTI ON Of NATURAL GAS

CONDITION Of THE fE DERAL RESERVE BANK Of DALLAS
(In tho usands of dollors)

Seasonally adjusted index
(1957-59= 100)

In millions of cubic feet

Oct. 26,
1966

Nov. 30,
1966

Item
botal go ld certificate reserves ... . ..... .. . . . .
O'scounts for memb er banks ... .......... . . .
Uth er discounts and advances ............. .
T.5. Government securities ................ .
ta l earning a ssets . . . .... .. ........ .. ... .
F ember bank reserve deposits . ..... .. . ... . .
ederal Reserve notes in actual circu lation •. .. .

M

38 1,754
106,800
870
1,663,5 14
1,771, 184
1,001,447
1,239,004

345,008
81,202
754
1,677, 176
1,759,132
966,078
1,254,173

Dec. 1,
1965

334,779
1,846
1,9 14
1,656,698
1,660,458
917,604
1,1 67,284

Area

Second
quarter
1966

first
quarter
1966

Second
quarter
1965

Second
quarter
1966

first
quarter
1966

Second
quarter
1965

louisiana .......
New Mexico . . ...
Oklahoma • ••. . •
Texas ..... . ....

1,178,700
244,600
274,600
1,684,700

1,301,BOO
264,900
322,700
1,839,500

1,053,600
230,000
300,500
1,64 1,900

234
143
160
129

209
134
175
129

210
134
175
126

Total .• •..• • ••

3,382,600

3,728,900

3,226,000

158

153

150

SO URCES , U.S. Bureau of Mines.
Federal Reserve 80nk of Dollas .

INDUSTRIAL PRODU CT ION
(Seasonally adiusted indexes, 1957-59

DA ILY AVERAGE PRODUCT ION Of CRUDE OIL

= 100)

(In thou , ands of borrels)

~

-

Area and type of index

TeXAS (1 966 revision)!
Tota l Industrial producti on. ... ..
Manufacturing .. . . ... .. .. . .....

October
1966p

September
1966

August
1966r

October
1965

~;Wt~:;. ::::::::::::::::::::::

147.7
165.1
180.5
154.9
116.9
175. 1

148.6
165.6
178.0
157.4
11 6.7
185.8

145.9
162.5
175.3
153.9
114.9
181.7

136.6
151.5
162.1
144.5
108.7
16B.7

Utl7i't~:S·. ::::::::::::::::::::: :

158.6
160.8
168.4
151.3
121.7
179.0

158.1
160.3
167.4
151.4
121.3
179.0

158.2
160.3
167.2
151.2
122.0
178.6

145.5r
147.0r
150.8r
142.3r
116.4r
164.7r

Durable • •••.... ••••••••• ..• .

Nondurable . . .. .........• . . ..

UN ITED STATES
M Total industria l production •••...
anufacturing . ... ... . . . ... .. ..
Durablo ...... . . . ....... .....
MIN.°ndurab/o • •• • •• • • ••••••••.•

---~----------------------------------------------~1 Comparab le bock
PPrelimi nary.

da ta are oval lable from th e Research Depa rt ment of this Bank.

Revised.
SOURCES, 800rd of Governo rs of the Federa l Reserve System.
Federal Reserve 8ank of Da llas.
r-

Percent change from
Area

October
1966p

September
1966p

October
1965

elEVENTH DiSTRiCT ••••••.•
Texas .... . . ........ . . . .
Gulf Coast •. ••• • .•••••
West Texas . .... . .....
East Texos (p ro per) ••• • •
Pan hand le • •. . ••••. • .•
Rest of State • • ••• • .•••
Southeastern New Mexico ..
Northern Louisiana . . •... . .
O UTSIDE ELEVENTH DISTRICT
UNITED STATES ••• • • •• •••••

3,445.0
2,965.7
552.5
1,355.3
125.3
96.4
836.2
307.0
172.3
4,930.5
8,375.5

3,413.2
2,940.6
539.0
1,335.8
123 .1
99.6
843.1
300.5
172.1
4,8B6.5
8,299.7

3,225.8
2,779.5
525.1
1,282.2
11 2.5
96.2
763.5
293.0
153.3
4,649.1
7,874 .9

September
1966
0.9
.9
2.5
1.5
1.8
-3.2
-.8
2.2
.1
.9
.9

Octob er
1965
6.8
6.7
5.2
5.7
11.4
.2
9.5
4.8
- 12.4
6.1
6.4

p Preliminary,
SOURCES , American Petroleum Institute.
U. S. Bureau of Mines.
Federal Reserve Bank of Dallos.

3

NONAGR ICULTURAL EMPLOYM ENT

VALUE OF CONSTRUCTION CONTRACTS

,
.,"

(In millions of do llars)
January-October

October
1966

Area and type

September
1966

Octob er

1965

1966

Five Sou thwester n States '

.'

11

=
Percent change

Oct, 1966 from

Number of persons

1965

Oct.
1965

Sept.
1966

Octob er

FIVE SOUTHWESTERN
STATES' ............... .
Residential building . .. . ..•
Nonresi d ential building ....

Nonbuilding construction ...

UNITED STATES ............
Residential building ••••••.
Nonresidential building ... .
Nonbuilding construction • •.

522
119
147
255
4,083
1,261
1,676
1,146

586
128
216
242
4,106
1,225
1,796
1,086

414
169
140
105
4,356
1,897
1,582
877

4,576
1,625
1,474
1,478
43,652
15,856
16,733
11 ,064

4,436
1,783
1,506
1,147
41,986
18,193
14,5 14
9,279

Arizona, loui sia na, New Mexico, Oklahoma, and Texas.
NOTE. - Details may not add to totals because of rounding,

September

1966p

1966

Octob er
1965r

5,446,100
995,300
4;450,800
232,000
358,200

5,408,300
991,100
4,420,000
236,500
360,000

5,226,100
931,400
4,294,700
233,600
36 1,700

0.7
.4
.7
- 1.7
-.5

4.2
6.9
3.6
-.4
_1.0

423,600
1,276,900
27 1,300
787,800
1,100,400

Type of employm ent

423,600
1,272,300
27 1,200
787,900
1,068,200

408, 100
1,2 29,500
26 1,600
759, 100
1,041,100

.0
.4
.0
.0
3.0

3.8
3.9
3.7
3.8
5.7

Total nonagricultural

wage and sa lary work ers,.
Ma nufacturing •. .••••....
Nonmanufacturing ••. . .•.•

Mining .......... . ....
Construction . .. .. . . ....
Tran sportation and
public utilities ••.. .. . .

1

Trade •..••......••..•

SOURCE, F. W. Dodg e Company.

Finance • •••••..•.•••..
Service •. . .•..... . . . . .
Governm ent ...... .... .

1 Arizona , Loui si a na , N ew M exic o, O klahoma, and Texa s.

p r -

Preliminary.
Revised.

SOURCE , Sta te employmen t age ncies.

COTTON PRO DUCTI O N

Texas Cro p Rep o rt in g Districts
(In thousands of bo les -

500 pounds gross weight)
CA SH REC EIPTS FR O M FARM M ARKETINGS

1966,

1966

indicated

as percent of

Area

Nov. 1

1965

1964

High Plains .. . .... .. .
High Plains •.••••• • ••
Plains • ••• .••• ••• ~ ••
Plains ••..• • .• . • . . ••

1O·N - South Texas Plains •• • •••• •• ••
10-S - Lower Rio Grande Valley ••••••

330
1,200
230
330
20
475
30
45
145
25
90
135
85
35
245

555
1,693
281
402
21
469
34
58
194
57
108
168
20 1
41
383

565
1,348
236
247
17
443
27
66
213
24
146
166
248
45
332

59
71
82
82
95
10 1
88
78
75
44
83
80
42
85
64

State •• • • • •• • ..••••• • ••.•••••.•

3,420

4,665

4,123

(Dolla r amounts in thousa nds )

1965

73

l- N l-S 2-N 2-S 3 4 -

Northern
Southern
Red 8ed
Red Bed

Western Cross Timb ers • ...• '"
Black and G ra nd Prairies.. •.. .
5·N - East Texas Timb ere d Plains ••••
5-5 - East Texas Timbered Plains ..•.
6 - Trans - Pecas • . .... . . • . . ..... .

7

- Edwards Plateau ........ . ... .

B·N - South ern Texas Prairi es •. . •• .•
8-5 - South ern Te xa s Prairi es • . •• . .•
9 - Coa sta l Prairies............. .

~

January-Septemo er

1965

Percent
incre a se

324,085
250,734
129,682
519,069
1,590,333

7
10
13
13
16

$ 2,813,903
$25,908,111

14
12

1966

Are a

Texas .•.•.•...•.•..........

347,219
276,734
146,455
587,565
1,845,141

Total .... ........... . .....
United States •••••.•••.. •••

$ 3,203,114
$28,98 1,179

$

Arizona .•••.•.....•.••.....
Louisiana . . .. .. . .. . . .. .. .. • •
N ew M exico • • • •.............

Okla homa •••• • • • • . • •• .•. .• •

$

SOURCE, U.S. Department of Agriculture.

SOURCE, U.S. Departme nt of Agricult ure.
BUILDING PE RMITS

VALUATIO N (Dollar amounts in thousands)
CRO P PRODUCTION

Perc ent cha nge

(In tho usands of bushels )

Oct. 1966
NUMBER

TEXAS

10 mos.

6, 126

$ 1,325

3,481

53
248
284
140
401
1,690
319
EI Pa so .......
667
Fort Worth • • .•
73
G al veston ••• • .
Houston ..• •.. 1,705
93
Lubbock •.. .• •
60
Midla nd ••••..
66
O dess a .••.. . .
115
Port Arthur • • • •
San Antonio ... 1, 186
Wa co • •... .. .
166
Wichita Fa lls ..
59

Total -19 cities • • 8,1 03

Area
estima ted

Average

Nov. 1

1965

1960-64

Nov. 1

1965

1960-64

Cotton 2 • ••••••• •
Corn •... . ••.• . .
Winter wheat • . ••

3,420
19,872
66,825
22,148
2,508
496
21,672
329,450
720
3,169
399,000
4,440
1,105
23,000

4,665
19,371
72,630
21,975
2,698
377
21,7 14
285,740
940
3,065
299,250
2,921
1,280
62,000

4,480
27,935
62,436
21,503
6,292
354
15,838
230,073
955
2,363
225,323
2,637
1,1 12
31,600

4,830
28, 143
171,688
30,111
24,507
1,252
42,710
380,728
720
8,386
642,090
8,236
5,240
83,500

6,616
29,596
212,7 16
31,019
25,914
1,305
40,5 12
334,5 12
940
8,34 8
523,62 5
5,8 13
6,1 04
121,400

6,52 1
41, 196
164,459
32,623
31,074
1,135
30,991
267,01 1
955
7,008
404,683
5,633
4,769
88,510

Rice 3 • ••••••• • ••
Sorgh um grain ...

Flaxseed • •• •. . •
Hoy· • •• . • ••• . ..

Peanutss• .......
Irish potatoes 6 ... '
Sweet fotatoes 6..
Pecans . •• •. .•..

1 Arizona, Loui si ana, N ew Mexico, Oklahoma , and Texa s.
!! In thou sa nds of ba les .
a In thousands of bag s contai ning 100 pounds each.
4. In thousands of tons.
Ij I n thousands of pounds.
o In tho usand s of hundredweight.

SOURCE , U.S. Deportment of Agric ul ture .

4

10 monthS,
1966 from
1965

-

Sept.
1966

Oct.
1965

21,465

- 1

23

1,922

24, 137

106

-63

23

677
3,895
3,146
1,652
3,787
19,049
4, 102
6,406
915
20,33 1
1,644
897
1,075
962
13,021
2,054
708

664
622
4,002
519
2,020
10,659
3,147
3,11 0
311
27,256
6,8 13
356
252
658
5,3 14
597
1,940

12,767
31,140
66,3 15
13,175
28,550
160,137
47,951
67,465
10,895
275,651
54,607
13,013
10,725
4,570
76,756
10,562
13,218

-72
-82
50
0
-25
-32
-13
-82
-62
61
48
-10
-58
157
- 13
- 73
-5

-83
-8 1
-2 1
-59
45
-21
- 13
-23
-49
1
139
-67
-65
- 13
7
11
190

- 17
4
20
- 17
32
_4
4
42
68
2
61
_4
-10
-2 1
24
-40
34

93,92 8

$71,487

$943,099

- 15

- 12

Oct.
1966

10 mos.
1966

481
297

1966

1966,
.A:vera ge

Crop

Oats • • ..•••• •• •
8arley • • • • .• •••
Rye ... . .... ... .

from

Oct.
1966

FIVE SO UTH WESTERN STATES'

1966,
estimated

=

AR IZO NA
Tucson • • ••••.•

LOUISIANA
Shreveport . . . .

TEXAS
Abilene •••...•

Amarillo ......
Austin . . ••••..
Bea umont . ...•
Corpus Christi ..
Da lla s.• • • • .. .

-

IfEDERAt. RESERVE
BANK OF IDA IL LAS

FEDERAL RESERVE BANK
OF DALLAS

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 1966, with comparative
figures for 1965, are shown herein. Lists of the directors and officers of
the Bank and its branches as of January 1, 1967, are also included.
A review of economic and financial developments in the Nation
and the District during 1966 is being presented in the January 1967
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 (mailing address: Station K, Dallas, Texas 75222).

Sincerely yours,

WATROUS

President

H.

IRONS

statement 01 condition
Dec. 31, 1966

Dec. 31, 1965

ASSETS
Gold certificate account .. ...... .
.... ...... . .......... $
Redemption f.und for Federal Reserve notes

655,337,464
61,919,809

$ 367,907,289
56,691,801

Total gold certificate reserves .. ... .
Federal Reserve notes of other Banks .
Other cash. .
. .. .. ..
. ..... . .
Discounts and advances .
U.S. Government securities:
Bills ..
. . . .... .
Certificates .... .. .. ... .
Notes .... . . . ....... .
Bonds

717,257,273
40,500,700
18,429,704
400,000

424,599,090
47,262,200
6,546,798
22,024,000

430,479,000
158,682,000
776,882,000
226,069,000

374,626,000
1,022,083,000
269 ,636,000

1,592,112,000

1,666,345,000

1,592,512,000
540,487,954
9,840,781
62,751,442

1,688,369,000
464,980,479
10,513,931
49,104,064

.... $2,981,779,854

$2,691,375,562

. $1,278,172,767

$1,193,940,804

1,064,648,587
137,218,136
9,280,000
7 ,047,303

1,034,443,622
21,204,504
8,700,000
5,970,581

1,218,194,026
410,832,102
8 ,152,959

1,070,318,707
355,703,182
7,476,769

2 ,915,351,854

2,627,439,462

33,214,000
33,214,000

31,968,050
31 ,968,050

Total U.S. Government securities .
Total loans and securities ... . . .
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
....... .
Total deposits
Deferred availability cash items .
Other liabilities ....
TOTAL LIABILITIES
CAPITAL ACCOUNTS
Capital paid in .
Surplus
TOTAL CAPITAL ACCOUNTS ..
TOTAL LIABILITIES AND CAPITAL ACCOUNTS .

66,428,000

63,936,100

. .... $2,981,779,854

$2,691,375,562

earnings and expenses
1966

1965

CURRENT EARNINGS
Discounts and advances .... .

. . . ....... . $ 2,184,633

$ 1,062,969

71,722,638

62,144,870

1,275,220

809,956

35,484

31,407
64,049,202

U.S. Government securities .. .
Foreign currencies .... . . . .
All other ....

TOTAL CURRENT EARNINGS ..... . . ... .. . .. .. . . .. .. . . . 75,217,975

CURRENT EXPENSES
Current operating expenses ..

10,437,270

9,991,494

524,400

501,096

863,240

Assessment for expenses of Board of Governors ............ .

1,153,992

Federal Reserve currency:
Original cost, including shipping charges .
Cost of redemption, including shipping charges ......... .

66,555

48,538

. ..... . ....... . ....... . ... .

11,891,465

11,695,120

Less reimbursement for certain fiscal agency
and other expenses .
. ......... ... ..... . .. .

848,953

840,387

... . ........... . ... .. .. ... ... . . . 11,042,512

10,854,733

Total . . . . . . . . . . . . . . .

NET EXPENSES

-----

PROFIT AND LOSS
Current net earnings . . . .. . . . .
Additions to current net earnings ...

64,175,463

53,194,469

76,588

71,537

Deductions from current net earnings:
95,832

329

7,24 1

49,113

Total deductions .. ,

103,073

49,442

Net additions or deductions (-) .

-26,485

22,095

Net earnings before dividends and payments
to U.S. Treasury ....... . . . .... .

64,148,978

53,216,564

Dividends paid ... '. . .... ............. .

1,965,116

1,891,621

60,937,912

49,942,543

Transferred to surplus ........ . ............. . .... . ..... . .
1,245,950
Surplus, January 1 ....... .
. , . . . .... 31,968,050
Surplus, December 31 .. .
. .. .. . . .. .............. . .. $33,214,000

1,382,400

Loss on sales of U.S. Government securities (net) .
All other ........ . ...... .

Payments to U.S. Treasury (interest on F.R. notes) ..

30,585,650
$31,968,050