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business
•
revIew

december 1968

FEDERAL 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

record year for
eleventh district agriculture . . . . ............. .

3

petroleum in '68 . ........ . ................ .

8

district highlights . . ..... . .... .. ..... ... . . .. .

13

'-ecord year 10'eleventh dist,-ict
agriculture
Production of agricultural commodities in
the Eleventh District states of Arizona, Louisiana, New Mexico, Oklahoma, and Texas is
likely to be at an all-time high in 1968. Available data on crop and livestock production indicate that total physical output in the five states
this year may be approximately 13 percent
greater than the 1967 total and 5 percent above
the previous record reached in 1965. Record
OUtturns of wheat, sorghum grain, rice, hay, and
~attle have accounted for a large share of the
Increased output.
Several factors have contributed importantly
to the prospective record output from SOUtl1~estern farms and ranches. Weather conditions
In the Southwest have been favorable throughOUt most of the year except in the northeastern
Part of the District, where early-season moisture
was excessive and crop prospects were reduced,
and'In the Gulf Coast area of Texas, where unt'
~ely rains caused some crop damage. ProductIon of two major crops - cotton and ricewas encouraged by changes in Government programs, which increased allotment acreage. In
~ddition, wheat acreage harvested in 1968 was
1 percent more than in the previous year. Live~toCk production rose as a result of ample
forage supplies and the furtl1er expansion of
ed Cattle operations in the District states.
. Total cash farm income also is expected to

~Ise significantly this year and top the previous
. ecord set in 1966. However, the rise in farm
;ncom e between 1967 and 1968 is 110t likely to
llatch the gain in physical output because some
Crop
.
pnces have remained under pressure from

large supplies and production expenses have
continued their uptrend.
Crop production in tl1e Southwest in 1968 is
expected to be approximately one-fifth greater
than the 1967 output. Because of their weight
in total crop production, four major cropscotton, wheat, sorghum grain, and rice - will
account for the bulk of the increased volume;
but it is quite significant that the outturns of
most of the crops grown in the District probably
will be up from their respective 1967 levels. In
fact, some of the largest percentage gains in
production have been tl10se for the relatively
minor crops, such as oats and flaxseed.
A sharply larger cotton crop is one of the
most important factors accounting for the rise
in total crop production this year. The 1968
cotton crop in the five states is expected to total
approximately 5.2 million bales, or 29 percent
above the actual production in 1967 but well
below tl1e record output in 1949. District farmers planted about 18 percent more acreage in
1968 than in the previous year. Furtl1er, the
average lint yield per harvested acre is likely to
be around 458 pounds, up sharply from the
average yield of 418 pounds last year. Favorable growing conditions in tl1e Southern High
Plains of Texas, the most important cottonproducing area in the District, have accounted
for most of the improvement in yield .
In contrast to the 1967 arrangements, the
Federal cotton program for 1968 contained
three principal changes designed to increase
output. (1) Farmers were required to divert
only 5 percent of their effective allotment acre-

business review / december 1968

3

age, as compared with 12.5 percent previously.
(2) The maximum amount of acreage permitted under voluntary diversion was reduced
from 35 percent to 30 percent in 1968, and the
payment rate for this diversion was reduced.
(3) The rules for measuring cotton planted in a
skip-row pattern were changed to those which
had been used from 1962 through 1965. Under
these rules, only the land actually planted to
cotton is counted as acreage in determining
compliance with program provisions.
Winter wheat production in the five southwestern states in 1968 is indicated to be a
record 222 million bushels, which is 47 percent
greater than the 1967 crop. Higher yields were
mainly responsible for the upshift in production,
as additional acreage accounted for only 11
percent of the increased output. A low rate of
abandonment in 1968, contrasted to last year,
enabled southwestern farmers to harvest more
acreage this year despite a cutback in wheat
acreage allotments.
The production of grain sorghums (which
are grown widely throughout the Southwest)
and of rice (which is heavily localized in the
coastal area of Texas and in southern Louisiana) is expected to be larger than in 1967. The
1968 sorghum grain crop in the District states is
estimated at about 412 million bushels, or 1
percent above production last year. This record
level of output would be achieved in spite of a
6-percent decline in acreage. Production of rice
in the District states also is likely to attain an
all-time high. Output in 1968 is indicated to be
15 percent above last year's crop, an increase
due entirely to the fact that acreage was up onefifth. Earlier in the year, prospects for rice production were even brighter, but untimely rains
in the Gulf Coast area of Texas have reduced
yields from the second cutting of the crop.
Production of minor crops in the Southwest
also has shown marked improvement this year.
Output of oats is expected to be more than
double last year's production. Com, barley, rye,

peanuts, and sweet potatoes have registered
production gains in 1968. With the exception of
corn, much of the increased output of tbese
crops is the result of larger acreages, rather than
significantly higber yields.
The production of citrus fruits has risen
sharply from last season, wben hurricane da~­
age severely reduced the crop in the Lower Rio
Grande Valley of Texas. The output of oranges
in Arizona and Texas in the 1968 crop year is
estimated to total about 8 million boxes, or 67
percent more than last year. A gain in southwestern grapefruit production also is expected,
with a large increase in Texas more than offsetting a decrease in Arizona.
The production of livestock and livestock
products in the five southwestern states in 196.8
will be about 6 percent above last year. 1h1S
year-to-year gain is the largest since tbe current
cyclical upswing in cattle numbers began 11
Increased production of major cropS
moved total crop production in the
Southwest to an all-time high RICE
CORN
PEANUTS
COTTON
SORGHUM GRAIN
WINTER WHEAT
BARLEY
HAY

_

ALL CROPS

o

10

20

30

40

PERCENT INCREA SE, 1968' FROM 196 7
' In d ic at ed No v o mb e r 1.

SOURCE : U. S. De pa rtm e nt o f Ag ri c ultu re.

50

years ago. In contrast to the fact that total crop
production is reflecting increases for a wide
variety of crops, cattle and calves have accounted for practically all of the increase in
livestock production this year.
Based on data for the first 9 months of 1968,
beef and veal production in the Southwest will
total about 10 percent higher than last year. A
larger portion of the total slaughter has consisted of mature cattle, since cattle slaughter has
risen around 13 percent from a year ago while
the number of calves slaughtered has dipped by
a similar amount. The average weight of marketed animals has shown little change from last
year, although there has been a further sharp
rise in cattle feeding.
The significant increase in marketings of fed
cattle has been an important factor in boosting
total livestock production in the Southwest, particu larly in Texas. The number of cattle and
Output of cattle and calves accounted
for most of the gain in total livestock
production in the SouthwestEGGS
MI LK
WOOL
MOHAI R
BR OILERS
T URKEYS
CATTLE
AND CALVES

-

--

I

I

ALL LIVESTOCK AN D PRODUCTS

- 15

-5

o

+5

PERCENT CHANGE.1968 . FROM 1967

c - Partly es tlmated .
SOURCES : U ,S. De pArtm e nt of Ag ri c ultur e.

Federal Rese rv e Bank of Dalla s.

Continuing the downward trend begun in
1966, sheep numbers declined further during
1968. The number of sheep and lambs slaughtered in the five states in 1968 will probably
total around 14 percent below the previous
year. The number of sheep shorn is estimated
to be about 8 percent smaller than last year;
and wool production, at approximately 47 million pounds, likely will be down 6 percent, despite the higher average weight per fleece.
In 1968, as in other recent years, the number
of milk cows in the District states declined, and
milk production per cow increased. Total milk
output for the current year is expected to be
only slightly larger than in 1967. Favorable
forage conditions in most areas of the District,
plus the continuing adoption of improved dairy
husbandry practices, have been responsible for
the increased production of milk in spite of
fewer cows.
Until this year, the supply of poultry and eggs
in the Southwest had been increasing steadily
since 1963, but total output in 1968 may be a
little lower than it was in 1967. However, broiler
chick placements in Louisiana and Texas could
be slightly more than tlle 210 million placed last
year. Egg production in the Southwest for the
current year will likely remain unchanged from
the 4.7 billion eggs produced in 1967. On the
other hand, turkey production is expected to
dip from last year's record total.

I

LAMBS

calves on feed in the District states on October 1, 1968, at nearly 1.6 million, was approximately 29 percent greater than a year
earlier. The number of cattle and calves on feed
in Texas accounted for almost three-fourths of
the gain in production of fed cattle in the
Southwest.

+15

When broadly viewed from the standpoint of
overall production, 1968 has obviously been a
bountiful year for District farmers and ranchers.
Nevertheless, any analysis of how agriculture
fared must include price and income factors.

business review/ december 1968

5

The price index for all farm products in
Texas has averaged above the 1967 price index
during 1968, mainly because of higher prices
for livestock and livestock products - especially cattle, prices for which have been particularly strong throughout the year. Prices received for all crops through October this year
averaged slightly above those during the same
period last year, but most of the strength
stemmed from higher prices for cotton and rice.
Prices for these two commodities have moved
downward as harvesting has progressed, and
the index of prices for all crops in 1968 is
likely to be little different from the 1967 average. Favorable growing conditions throughout
the Nation and the world have resulted in larger
supplies of most food and feed grains, and
prices for some crops have remained at or near
post-World War II record lows. As a consequence, southwestern farmers have turned increasingly to the Government price-support
loan programs.
Through September of this year, cash receipts from all agricultural commodities in the
five southwestern states totaled about 5 percent
more than in the J anuary-SeptOOlber period of
1967. Gains in livestock receipts equaled those
for crop receipts. For the 1968 calendar year, it
appears that total cash receipts in the District
states will be considerably above last year's receipts and may match or slightly exceed the
record $4.9 billion received in 1966.
In addition to being affected by the level of
cash receipts, realized net farm income naturally will depend upon the influence of Government payments and of production expenses.
Probabilities are that Government payments in
the Soutllwest will more than equal the nearly
$710 million received last year. However, production expenses in 1968 likely advanced at
about the same rate as in the previous year, due
mainly to the increased costs of off-farm production inputs. Consequently, realized net farm
income for the southwestern states this year may
be up sharply from the $1.8 billion figure in

6

FARM PRICES
PERCENT (1910 - 14 =100)

360
PAID BY U.S. FARMERS

320
RECEIVED FOR TEXAS
LIVESTOCK AN 0 PRODUCTS

280
RECEIVED FOR ALL
TEXAS FARM PRODUCTS

240

200

160

1967

1968

SOURCE : U .S. De p ar tm e nt of Ag ri cultur e .

1967 and could possibly exceed the record of
$2.0 billion in 1966. Average income per farJll
is expected to be higher in 1968, because of tbe
smaller number of farms and the larger net
farm income.
The record production of agricultural coJllmodities in the current year, coupled witb le~S
than proportional increases in both domestiC
and foreign demand, has resulted in some operational readjustments in the 1969 Gover~­
ment farm program, which will affect sout western farmers and ranchers.
in
.
The present supply-demand situattO~ ulwheat has already led the Secretary of Agnc69
ture to reduce the wheat allotments in 19 .
The 1969 national wheat acreage allotlllent baS
been placed at 51.6 million acres, down 13 p~­
cent from the present year's allotment. 'ftb~
1969 wheat acreage allotment in the five sou
western states is set at close to 8.7 million acreS.

Price-support loans will remain at $1.25 per
bushel, and total price support, equal to 100
percent of parity, will be available on 43 percent of the projected production on the allotted acreage.
In an attempt to increase cotton production
next year, the U.S. Department of Agriculture
has announced a 1969 cotton program that
eliminates all land diversion requirements and
offers a higher price-support payment rate. The
price-support payment in the coming year will
be 14.73 cents a pound, compared with 12.24
cents a pound under the 1968 program. The
USDA estimates that the new program will enable cotton growers to produce between 12.5
million and 13 million bales next year, compared with the 10.9 million bales estimated for
the 1968 crop.
The National Grains Advisory Committee
has made its recommendations for the 1969

Feed Grain Program. The recommendations,
which center around the possibility of raising
grain prices by reducing production and stocks,
include (1) an acreage diversion goal of 2 to
4 million additional acres above 1968, (2) consideration of higher price-support loan and payment levels than those in effect for 1968, and
(3) the continuation of other provisions similar
to those in effect in prior years of the feed grain
program.
In view of the ample supplies of feed grains
and concentrates and the favorable range and
pasture conditions, a good basis exists for a
further advance in the output of livestock and
livestock products in the Southwest next year.
Capacity for producing fed cattle continued to
expand during 1968, and the prospects for further expansion in 1969 will likely depend upon
price developments.
CHARLES

M. WILSON

business review/ december 1968

7

petroleum in

~6B

Estimates at the beginning of 1968 regarding
the strength of the demand for petroleum products during the year were below the rise that
actually occurred. To most analysts, it seemed
doubtful that the increase in effective demand
this year would approach the magnitude registered in either 1966 - a year of forceful economic growth - or 1967 - a year in which the
war in the Middle East sharply stimulated the
production of American crude oil. Data thus
far this year, however, suggest that the rise in
demand for petroleum products for 1968 as a
whole may be close to that in 1966 and may
exceed last year's achievement.

when growth lagged. The rapid increases in
passenger air travel and in airfreight, as well as
Viet-Nam war requirements, are reasons for the
expanding demand for this product. The growth
in gasoline demand was greater than a year ago.

The strong demand that unfolded in 1968
brought with it a step-up in domestic production and refining; also, inventories of all oils
most of the year were maintained well above the
comparable year-earlier levels. Despite the unusual seasonal pattern of petroleum imports
(due, in part, to a further unwinding of the transportation difficulties stemming from the Middle
East conflict), imports for the year totaled well
above those in 1967. Moreover, two developments in 1968 that will have an important impact upon petroleum markets in the years ahead
are the discovery of a major source of American petroleum reserves in Alaska and the completion of Capline, the Nation's largest crude oil
pipeline, connecting Louisiana producing areas
with the Middle West.
During the first three quarters of this year,
the demand for petroleum products, in terms of
volume, averaged 6 percent higher than in the
same period last year, with all major categories
of products sharing in the advance. As was true
in 1967, the demand for jet fuel showed by far
the largest percentage gain among the major
products. The demand for jet fuel rose substantially in virtually every month except May,

8

The demand for distillate fuels, used mainly
for diesel engines and for space heating, greW
re e'
modestly through September. However, a
f
ord demand for heating oils at the beginning 0

the year had pressed hard on supply, as inventories of these oils were at rather low levels at
the beginning of the 1967-68 winter heating
season. Like many commodities, petroleum experiences seasonal variations in demand. Winter
weather noticeably increases the demand for
distillate fuel oil for heating, and last winter was
no exception. Furthermore, the shortage of distillate oils partially reflected a scarcity of tankers and concurrently higher shipping rates as a
consequence of the Middle East crisis. Distributors of heating oils in the Northeast asserted that
the higher expense of moving heating oils
threatened to price them out of the market.
The shortage of heating oils' was aggravated
by the fact that, early in the season, refiners
had emphasized the production of higher-profit
items, such as jet fuel and gasoline. Also, many
industrial users mixed heating and residual oils
in order to reduce air pollution and conform to
antipollution laws. Temperaturewise, last December was mild, but January and February
Were colder than usual; and the demand for
distillate oils broke all records. In some areas,
the natural gas ordinarily supplied to industry
Was diverted to residential uses, and industry
used more oil.
Another characteristic of the market for distillate fuels during the winter months was a
certain amount of hoarding of supplies through
fear that a real shortage would develop, although the extent of such hoarding cannot be
accurately determined. As a consequence of the
high effective demand, the demand for distillate
oils was 15 percent larger in January and February than in the same period last year. Rises
in demand in subsequent months were more
normal; and during the first 9 months of this
Year, demand for distillate oils was about 5
percent above the comparable span in 1967.
The demand for petroleum products is low
during the spring (especially in May), being a
period between the end of the heating season
and the beginning of summer, with its increase

GAINS IN PETROLEUM DEMAND
UNITED STATES
1967 OVER 1966

ALL OILS

1968 OVER 1967

GASOLINE

DISTILLATE
FUEL OIL

RESIDUAL
FUEL OIL

.-

-

JET FUEL

o
5
10
15
20
25
PERCENTINCREASE,JANUARV- SEPTEMBER
SOURCES : Am e ri c an Pet rol e ulII In s titut e .
U.S. Bur e au of Mi n es.

in gasoline sales. Gasoline sales in June showed
a very modest increase; yet, a strong surge occurred in July, with a gain of almost 8 percent
over the same month last year. In August, there
was another rise, although much smaller, and a
new monthly record was set. During the summer months, about 5.7 million barrels of
gasoline were sold per day.
According to the Independent Petroleum Association of America, total demand for petroleum products will probably advance 2.5 percent during the fourth quarter of this year over
the same period in 1967; most of the advance
is likely to occur in the latter part of the quarter. Jet fuel is expected to lead the gains. Refineries will produce more distillate fuels for
heating, and less gasoline, than during the
spring or summer. After the Labor Day weekend, vacation travel falls off, and the petroleum
industry prepares for the following winter;
hence, September is a transitional month for
the petroleum industry. It is anticipated that
the demand for distillate oil will rise, but the

business review/december 1968

9

increase will depend on weather conditions.
Gasoline and residual fuels will post gains, with
the level of industrial production determining
the advance for residual fuels.
The supply of all petroleum products was
much larger during the first three quarters of
1968 than in the same period last year. Crude
oil production in the Nation averaged 5 percent higher, and the gain in crude runs to refinery stills was greater than a year earlier. In
the Eleventh Federal Reserve District, the yearto-year advance in crude oil output was somewhat less than the national advance because
output in the Southwest, in contrast to other
areas in the Nation, had undergone a much
greater expansion in 1967 as a consequence of
the Middle East crisis. For the United States,
CRUDE OIL TRENDS
UNITED STATES
PRODUCTION
THOUSANDS OF BARRELS DAILY

STOCKS
MILLIONS OF BARRELS

9, 600

+20
CRUDE OIL PRODUCTION

9,400

+15

9,200

+10

9 ,000

+5

8,800

o

8 ,600

-5
CRUDE OIL STOCKS

- 10

8 ,400

- 15

8 ,200
1967
p- Pr c limin ary.
SOURCES : Am e ri ca n P c trol c lIlllln s titut c.

U. S . Bur ea u o f Min es.

Fede r al Reser ve Bank of D all as.

10

1968

output of crude oil almost attained a new record with 9,319,000 barrels per day in February,
although production in the District for that
month did not approach the record level established in August 1967.
Reasons for the surge in crude oil output in
the Nation were (1) a continuing lag in imports
as an aftermath of the Middle East crisis, (2) a
colder winter than usual in the United States
and Europe, and (3) anticipatory purchases of
distillate oils for use in space heating. In the
District, crude oil output in the first three quarters of the year was 2 percent above the level
of a year ago, with crude runs to refinery stills
rising at about the national rate. The Texas allowable was almost one-third higher during the
first 6 months of the year than during the same
period last year; but in the last half, allowabl es
averaged much lower.
Despite the record drawdown of distillate
stocks due to the demand for heating oils early
in the year, inventories of all oils since February have remained at consistently higher levelS
than those last year. Inventories of refined
products were maintained at high levels during
the first quarter of the year because of substantial additions of liquid petroleum gases, which
are relatively minor products. As usual, large
amounts of refined products were added to inventories in July.
By midsummer, concern was being expres se.d
about the high level of distillate stocks. In addition, inventories of most other products were
higher than a year earlier except gasoline
stocks, which were little different from those at
mid-1967. Inventories during the first thre efourths of the year responded to seasonal nee~s;
and in spite of the higher levels that were rna~­
tained, stocks were considered to be in line w1th
the additional demand generated this year. In
contrast, before the Middle East crisis in June
1967, tlle supply of petroleum productsespecially crude oil - was running considerably ahead of market requirements.

The drilling of oil wells and gas wells in the
United States in 1968 has continued the downward trend that has been characteristic of the
drilling industry in this decade. Total oil well
completions during the first half of the year
were 7.5 percent below those in the comparable
period last year; total oil well footage drilled
showed a small increase, indicating that the
tendency to drill deeper wells has continued.
The importation of petroleum into the United
States has followed a very different pattern during 1968 than in previous years. During the
first 6 months of the year, crude oil imports
were about 10 percent below a year earlier;
however, in July and August, such imports
surged into the country as compared with the
rate of flow during the first half of the year or
compared with that for the same 2 months in
1967. Of course, imports of crude oil were very
low during the third quarter last year because of
the Middle East crisis.

Refined product imports, excluding residual
fuel oil, advanced approximately 23 percent
during the first three quarters of the year as
compared with the same period last year. The
principal reason for the rather large year-toyear advances for many of the products was the
fact that the level of imports during the second
half of 1967 was extremely low. There was considerable variation in the importation of the
different products. Residual fuels, of which the
Nation has been a heavy importer during
the last few years, rose almost 9 percent during the first 9 months of the year, with most
of the rise occurring in the third quarter. The
importation of distillate oils showed a twofold
gain, mainly because of the cold winter. Imports of both jet fuel and gasoline increased
CRUDE OIL OPERATIONS
ELEVENTH FEDERAL RESERVE DISTRICT
THOUSANDS OF BARRELS DAILY

The restricted imports of crude petroleum
during the latter part of 1967 and most of the
first part of 1968 reflected a strong demand for
petroleum in Europe during the winter due to
unusually cold weather, and this situation was
compounded by a shortage of tankers as a result of the closure of the Suez Canal. Consequently, many suppliers were unable to use up
their import quotas in 1967, and some were
carried over into 1968. It was expected that
there would be larger imports of crude petroleum in the spring in order to use the quotas
Which had been carried over from last year;
however, this expectation did not materialize,
Perhaps because inventories of refined products
were fairly adequate.
In June, imports began to accelerate, and
Very high levels were reached in July and August; these three months accounted for about
40 percent of total crude oil imports during
the first 9 months of 1968. Imports of crude
Petroleum in the January-September period
were 6 percent above a year earlier.

4.000

CRUDE OIL PRODUCTION

3,800

3,600

3,400

3,200
CRUDE OIL RUNS
TO REFINERY STILLS

3.000

2,800

2,600

1967

1968

p- Prellminary .
SOURCES ; American P e troleum Institute .

U. S . Bureau of Mines.
Federal Reserve Bank of Dallas ,

business review/december 1968

11

about 30 percent, but those of unfinished oils
declined noticeably.
Perhaps the leading news story this year for
the petroleum industry was the discovery of a
major oil deposit on the North Slope of Alaska.
Considerable exploration has been conducted
in many areas of that State, especially in offshore areas of the Cook Inlet and the Gulf of
Alaska; and the new area in northern Alaska
appears to be the richest yet. The discovery has
prompted many companies to increase exploratory activity on the North Slope. However, this
area is north of the Arctic Circle, and severe
winter weather - as well as the thawing of the
tundra in the spring - will create technical
problems in developing the field. Alaska, a nonoil producer 10 years ago, has been steadily
increasing output.
Another notable event in 1968, and one affecting the Southwest considerably, was the

new
par

bank

12

completion of Capline, the Nation's largest
crude oil pipeline, to deliver Louisiana crude oil
to markets in the Middle West. The rate of floW
reached 230,000 barrels per day in October,
and throughput is expected eventually to reach
1 million barrels per day. Earlier estimates had
placed throughput at a higher level; however,
delays, such as needed refinery expansion in the
Middle West and the completion of many connecting pipelines, have prevented full utilization
of the new pipeline.
Yet to be resolved is the problem of the allocation of the middle western crude oil market
between Canadian and southwestern crude oil
suppliers. Also, the effect of Capline on crude
oil producers in the middle western and Rocky
Mountain areas is uncertain; according to industry sources, it may take 6 to 12 monthS
before a new pattern definitely emerges.
RAYNAL HAMMELTON

The Border Bank, Hidalgo, Texas, an insured nonmember bank located in
the territory served by the San Antonio Branch of the Federal Reserve Bank
of Dallas, was added to the Par List on its opening date, November 1, 19?8.
The officers are: V. F. Neuhaus, President; Elliott B. Bottom, Executive VIce
President; and Roberto de La Garza, Vice President and Cashier.

dist,.ict highlights
During October, nonagricultural wage and
salary employment in the five southwestern
states rose slightly more than seasonally expected. At 6,028,2DO, payroll employment was
0.5 percent higher than in September and 4.2
percent greater than in October 1967. The
growth in the work force in both the manufacturing and the nonmanufacturing sectors was
stronger than usual this October. Employment
in government and construction activities was
particularly strong.
Compared with October 1967, the gain in
southwestern manufacturing employment exceeded that in nonmanufacturing employment,
as has been true in the past several months.
Government, service, and mining employment
surpassed the respective year-earlier levels by
5 percent or more. In the case of mining, the
large increase reflected, in part, the fact that a
strike by copper workers was under way at the
same time last year.
At 169.4 percent of its base, the Texas industrial production index in October was only
fractionally above a month earlier but 5.6 perCent higher than a year ago. Since May of this
year, industrial output has been on a high
plateau. Total manufacturing output increased
slightly during October, as fractional gains occurred in the production of both durable and
nondurable goods. Mining output was virtually
Unchanged, mainly due to the fact that seasonally adjusted crude petroleum production was
little different from that in September.
The year-to-year strength in total industrial
Production in the State was heavily centered in
the manufacturing sector, output from which
Was nearly 9 percent higher than in October
1967. Durable goods output was well over 10
percent greater than a year earlier, with espe-

cialJy notable gains evident in the production
of electrical machinery, transportation equipment, and "other durable goods" (mainly ordnance) . Crude petroleum output this October
was about 3 percent below a year ago.
As in the past several years, registrations of
new passenger automobiles in the major market
areas of Dallas, Fort Worth, Houston, and San
Antonio rose sharply in October from the preceding month. The increases this year were
quite large, varying from 31 percent in San
Antonio to 72 percent in Dallas. October registrations were 30 percent ahead of those ·.1as~
year, while cumulative registrations for the first
10 months of 1968 were up 19 percent.
Eleventh District department store sales for
the 4 weeks ended November 16 were up 6 percent over the corresponding period last year.
This compares with a year-to-year gain of 16
percent for the 4-week period ended November 18, 1967. In the major metropolitan reporting areas of Dallas, El Paso, Houston, and San
Antonio, the fluctuations ranged from a 13 ~
percent increase in Dallas to an 8-percent decrease in San Antonio. District sales for the
year to date were 12 percent more than those
in 1967.
In the Eleventh District, daily average prbduction of crude oi l in October was virtually
unchanged from the previous month but was
3.5 percent below output a year earlier. The
yearly decline resulted from less need for crude
oil supply than during the same period last
year, when worldwide crude oil production and
petroleum trade patterns were disrupted by
events in the Middle East. In Texas, the oil
allowable for October was 41.3 percent of the
Maximum Efficient Rate of production; for

business review/ december 1968

13

each of the following 2 months, the rate was
scheduled to remain the same. In Louisiana
and southeastern New Mexico, the allowables
for December are unchanged from November.

During the 4 weeks ended November 13, all
of the major balance sheet items advanced at
the weekly reporting commercial banks in the
Eleventh District. In addition, most of these
items exhibited strength as compared with a
year ago.
Spurred by a $40 million gain in loans for
purchasing or carrying securities, loans adjusted
increased $77 million. Within the loans adjusted
category, business loans showed a nominal gain
of less than one-half the $20 million rise in the
1967 period. Both consumer and real estate
loans remained strong, advancing considerably
more than in the comparable period last year.
Total investments rose $136 million, showing
marked strength in comparison with the $32
million decline a year ago. The primary source
of the rise in total investments was state and
local government security holdings (particularly
longer-term issues), which advanced $86 million. U.S. Government securities increased $36
million.

more than accounting for the rise in total time
and savings deposits. Negotiable time certificates of deposit issued in denominations of
$100,000 or more increased $23 million in the
period to a total of almost $1.6 billion.
Estimates of total crop production in the five
southwestern states continue to increase, and
such output is now expected to be approximately 21 percent greater than last year. Regional farmers are having little trouble harvesting the bumper crops, as clear weather has
made field work possible in most areas of the
Eleventh District.
Range and livestock conditions are generallY
above normal for this time of year. There were
slightly more than 1 million head of cattle and
calves on feed in Texas for slaughter market on
November 1, or 34 percent above a year ago
and 11 percent greater than the number on feed
a month earlier. In Arizona, there were 389,000
head of cattle and calves on feed for slaughter
market on November 1. The feed supply in the
District is expected to be adequate for winter
needs.

Among the liability items, total demand deposits advanced $27 million in the 4 weeks
ended November 13, displaying considerable
weakness relative to the year-earlier advance of
$123 million. A large increase of $130 million
in the demand deposits of state and local governments was almost fully offset by declines in
interbank deposits, U.S. Government deposits,
and deposits of individuals, partnerships, and
corporations.

Prices received by Texas f~rmers and ranchers during January-October averaged 3 percent
over those in the corresponding 1967 period.
Prices for crops were 3 percent higher, and
those for livestock and livestock products advanced 4 percent. However, prices for crops
during the past 2 months have reflected the
bumper crops; and the all crops index in October, at 192 percent of the 1910-14 base, waS
19 points below the September index. ~he
Texas livestock and livestock products pl'lce
index decreased 9 points from the previoUS
month.

Total time and savings deposits rose $42 million, which compares with a $31 million increase in the corresponding 4 weeks in 1967.
"Other" time deposits of individuals, partnerships, and corporations expanded $53 million,

Total cash receipts from farm marketIng f
the District states during January-September 0
1968 were almost 5 percent higher than in the
. frot11
comparable months in 1967. Cash receipts
both crops and livestock made similar gains.

.

S ill

STATISTICAL SUPPEEMENT
to the

BUSINESS REVIE:W

December 1968

FEDERAL RESERVE BANK
OF DALLAS

CONDITION STATISTICS OF WEEKLY REPORTING
COMMERCIAL BANKS

RESERVE POSITIONS OF MEMBER BANKS
Eleventh Federal Reserve District

Eleventh Federal Reserve District

(Averoges of doll y figures. In thou sa nds of dollars)

=

(In thousands of dollars)
Oct.2,1968

4 weeks ended
Nov. 1, 1967

74 1,271
691,162
50,109
738,882
2,389
1,543
846

724,317
672,425
51,892
736,778
-12,461
9,357
-2 1,818

684,581
637,600
46,981
679,843
4,738
857
3,881

724,392
550,405
173,987
703,438
20,954
8,493
12,461

720,090
542,129
177,961
686,086
34,004
14,374
19,630

662,699
501,425
161,274
625,607
37,092
1.238
35,854

1,465,663
1,2 41,567
224,096
1,442,320
23,343
10,036
13,307

1,444,407
1,214,554
229,853
1,422,864
21,543
23,731
-2,188

1,347,280
1,139,025
208,255
1,305,450
41 ,830
2,095
39,735

5 weeks ended

Item

Nov. 27,
1968

Oct. 30,
1968

Nov. 29,
1967

ASSETS
Net loans and di scounts ...• . . ....... .....•....
Valuation reserves ..•................. . ......
Gross loan s and di scounts . ................... .

6,008,834
109,585
6,118,419

5,960,081
106,53 1
6,066,612

5,217,932
92,929
5,310,861

Commercial and industrial loans •.•.•.....•. ..

2,861,353

2,793,167

2,568,243

92,522

88,032

96,945

74,573
99,281

108,678
109,139

12
64,743

320
372,541

334
358,683

1,259
331,792

123,476
348,402
605,403
289,249
6,126
628,849

126,546
350,867r
591,592
312,054
5,837
617,511

168,121
279,977
497,244
149,422
5,892
542,047

Agricultural loans, excluding CCC
certiAcates of intere st ... •••• . .... .. .•....

loan s to brokers and dealers for
purchasing or carrying:

U.S . Government securities ... ........ . ... .
Othe r securities .... , .... .. . ....... . .... .
Oth er loans for purchosing or carrying:

U.S. Governmen t securities ...... .•.. .. ....
Other securities .. ...................... .
Loan s to nonbank flnancial institutions:

Sales flnance, personal Anance, factors,
and other business credit companie s• . ... ..
Other •••••••..••• •• •.•••••••••••.•••.•
Real esta te loons ••... .••• ............... ..
loons to dom estic commercial bonks ••••.......
Loons to foreign bonks .• ••.... ...•...•••...
Consumer instalment locns •••. . ..•• • ..• ••••••
Loans to foreign governments, offlcial
institutions, central bonks, international
institutions •••.... •• ..•• . •• • •••..•.•..•.•
Other loans ••••....•.•••.••••••••..•.•..•

o

616,324

o

604,I72r

Total investments •••..•.••.. . ••...•• • •.• • . ...

2,557,600

Total U.S. Governmen t securities••.••.........

1,127,828
48,122

1,158,731
53,068

1,208,450
121,555

179,915
636,276
263,515

241,455
584,448
279,760

176,882
685,465
224,548

34,142
1,238,908

42,246
1,233,619

29,416
1,094,813

Within 1 year ••••••••••• • .• ••• • •• ••••
1 year to 5 years •• •• • ••••••••••••••••
After 5 years •••••••••• ••••• ••••••••• •
Obligations of states and political subdivisions:
Tax warrants and short·term notes and bill s ••

All other •••••••••••••••••••••••• • ••••• •
Other bonds, corporate stocks, and securities:
Participation certiflcates in Federal
agency loons ••....•••••....•.•••.••••

o

o

136,269
67,978
1,038,103
781,442
82,225
473,611
5,283
363,944

149,549
75,372
812,718
716,593
83,691
428,790
8,249
327,964

TOTAL ASSETS. • • • • • • . • • . . • • • • • • • • • • . •• 11,482,640

11,343,532

10,153,537

Cosh items In process of collection ••..•. •••. .• •.
Reserves with Federal Reserve Bank ••••• ••••••• .
Currency and coin .. ••• ......••..... . .. ••••••
Balance s with banks in the United States .. . .•••••
Balance s with banks in foreign countries ••••..•••
Other a sse ts•.• • •.• ••• .... •••. ..• . ...••• •. ..

Total reserve s held ............
With Federal Reserve Bank .. ..
Currency and coin ..... ...•..
Require d reserves ........... . .
Excess reserves ...•..... ... . ..
Borrowings •..................
Free reserves • . ... . •.. ........
Totcl reserves held .. •..... .•. .
With Federal Reserve 8ank . • ..
Currency and coin .•.....•...
Required rese rves ............ .
Excess re se rves . .......... .. ..
Borrowings •.........• ........
Free reserves.. .. ........ .. .. .

All MEMBER BANKS
Total rese rve s held • .. . ...... ..
With Federal Reserve Bank ....
Currency and coin ...•... ....
Req uir ed rese rves ..•..........
Excess re serve s .......... .. . ..
Borrowings •....... . .... . .....
Free rese rve s.. .. ........ .....

9,697,243

9,536,986

8,646,929

Total demand deposits ••••..•••• ••• •••••.••

8anks In the United Stotes ••••••••.••••••••

5,798,870
4,053,793
351,167
64,334
1,227,486

5,682,000r
3,943,240r
290,947
91,414
1,243,641

5,230,853
3,616,093
315,706
107,220
1,092,007

Foreign:
Governments, offlcial institutions, central
banks, international institutions •••......
Commercial bonks •. ....• . ••••••.••..••
Certifle d and offlcers' checks, etc .... . ..... .
Total time and savings de posits ..•.•.........

3,121
25,051
73,918
3,898,373

7,431
25,203
80,124
3,854,986r

3,343
23 ,423
73,061
3,416,076

1.046,154
2,174,953
635,010
11,644
23,312

1.044,734
2,131,667
636,050r
12,835
22,900

1,121,220
1,743,453
516,386
11,724
19,653

U.S. Government . •. ..••••••••.. . ........

Individuals, partnerships, and corporation s:
Savings deposits ••• . .•.•.•••••••..••..
Other time deposits.•.. •.. .......... .. .
State s and political subdivisions •...........
U.S . Governmen t (including postal savings) ...

Banks in the United States •••••.•••••••••••
Foreign:
Governme nts, offlcial institutions, central
bonks, international institutions .• •. •• •••

7,000
300

6,500
300

2,800
840

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

597,275
248,168

636,109
229,721

415, 113
192,233

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

939,954

940,716

899,262

TOTAL L1A8ILITIES AND CAPITAL ACCOUNTS 11.482,640

11,343,532

10,153,537

Commercial banks ••••••••••••.••••••••
Bills payable, rediscounts, and other
lia bilities for borrowed money • . . . .... . ..•. ..

r-

2

Revised.

--

CONDITION OF THE FEDERAL RESERVE BANK OF -DALLAS
(In thou sands of dolla rs )

======================================N===2=7======O====3=0======N=0=~=
.291
Item

{~·68

1968 '

'

1967

--------------------------------------------------306,886
327,545
393,11 4
Total gold certiflcate reserves . .. ... '" ..... .
Di scounts for member bonks • .. .... .. .. . ... .
Oth er di scounts and advances .. ........... .
U.S. Government securitie s •••. . ......... ...
Total earning asse ts............ .•.. . ••. .. .
Member bonk reserve deposits•• . .. .•.. .. . ..
Federal Res erve notes in actual circulation .. .•.

24,100
0
2 282 49
,
,5
2,306,595
1,292,834
1,533,234

9,449

2,60g

0
2,299,86 4
2,309,313
1,255,991
1,507,135

2 053,097
2'055,697
1'129,47 2
1',385,859

--------------------------------------------------

CONDITION STATISTICS OF ALL MEMBER BANKS
Eleventh Federal Reserve District

Total deposits . • • • •• . • •••••• • •• . ••••••• . •• ••
Individuals, partnerships, and corporation s••••

-

COUNTRY BANKS

LIABILITIES

States and political subdivisions •• . ••••• ••••

weeks ended

RESERVE CITY BANKS

o

148,213
67,955
1,096,782
802,091
80,006
512,954
5,489
359,438

All other (including corporate stocks) ••.•••••

4

o

2,638,843

Treasury certiflcates of indebtedness ••••• • • .
Treasury notes and U.S. Government
bond s maturing:

Nov. 6, 1968

605,164

2,617,046

Treasury bills .• •• ••••• •• ••• •• ••• • •• •••••

Item

(In millions of dollars)
Oct. 30,
1968

Sept. 25,
1968

10,445
2,483
2,960
1,256
253
1,216
7
1,169
492

10,468
2,4 10
2,862
1,229
258
1,204
6
1,093
494

20,281

20,024

Demon d de posits of bonks ...........•...
Other deman d depo si ts.... . .............
Time d eposits . •....•... ............••. .

1,738
8,485
7,426

1,502
8,608
7,280

Total deposits .• • •• •••.••• ...••• • ••. •

17,649
655
342
1,635

17,390
670
355
1,609

20,281

20,024

Item
ASSETS
loon s and di sco unts••...•...• . ......•...
U.S. Gov ernm ent obligation s...... .. .... ..
Oth er securities ..•...•..•....•..•......
Reserves with Federal Re serve Bank ...... . .
Ca sh in vault ..............•......... "
Balances with bonk s in th e Unite d States .. ..
Balances with bank s in foreign countri ese ....
Co sh items in process of coll ection . • . •.....
Oth er a ssets e ... .... ... " ... . . ........ .

TOTAL ASSETse •••• ••• .. •• ... •••• .•.
lIA81l1TIES AND CAPITAL ACCOUNTS

Borrowings . ...•.....•.............. ...
Other lia bilitie se .. .. ..... •. . .• .... •. .. .
Total capitol accountse •.. ........ .......

TOTAL lIA8Il1T1ES AND CAPITAL
ACCOUNTSe •• ••. .•.. • ..• •.. •.. •••
0-

Estimated.

~
Oct. 25,

~
9,11 5
2,519
2,62 2
1,127
234
1,18~

-

921
425

~
1,398
8,073
6,437

-

15,908
482
236
1,53 3

~

~

BANK DEBITS, END-Of-MONTH DEPOSITS, AND DEPOSIT TURNOVER
(Dollar amounts in thou sa nd s, seasonally adiusted)

DEBITS TO DEMAND DEPOSIT ACCOUNTS'
DEMAND DEPOSITS'

Percent change

October
196B
Standard metropolitan
statistica l area

ARIZONA, Tucson •..•.•. " ........•.••...•......... •
LOUISIANA, Monroe •.•.•.........••.....•.••.••.•.•
Shreve port .• ....•........ ..••.•...• • ... •
NEW MEXICO, Rosw ell' •...........•••.•••••••••..•.
TEXAS, Abilene . . . . .... . .. .......... ........ . .. . .. ..
Amarillo ••................•••.........•..•..
Austin ••.•••.•••••••••.•••••••••••• . ••••••••
Beaumont·Port Arthur-Orange • ••• •••••••••• • • • •
Brownsville -Harlingen-Son Benito ••• • ••••...•••••

Corpus Christi .•.• ..•••.... . .••.•.••...•......

Corsicana' •••.............••••......•.••.•..
Dallos •••. .•.•....... . ...•. • ••• . .•........••
EI Poso • . .. •.. ••.• ••....••.• .•. .•••••.. . ....
Fort Worth ...... .. . ..... ... ... ......... .....
Golvoston·Texa s City .........................
Houston . •• • •..••• •••. •• ••••••.•• •••••••••.•

loredo ...................•.........••......
Lubbock •..•............••..........••.•...•
McAllen-Pharr· Edinburg .. .... .. ...... ......... .
Midland . . ..••••......•• ...... .. . • • •••••... •
Od essa •.•.••...•••.................••••••..
San Angelo •.•..••........••••••..•...•.••.•
San Anton io • ••...•. . • .••..•• .•••.•..••••..•.
Sherman-De nison •••.• •••• ••• •.... •••••••• .. • .
Texarkana (Texas-Arka nsas} •••.....• ••• .• ..•...
Tyler •••..••.••..•••••....••••..••.•..•••• _.
Waco •• •...••• .. .••••• .•..... •••• .. •••...•.
Wichita Falls ........ ... ....... ............. .

10101_28 centers •••.. .•. . .•.•... •.. ••• ..•..... • . .• •

$

(Annual-ra t o

Se pte mb er

basis)

October

196B

1967

4,883,736
2,140,152
6,508,416
739,236
1,834,068
5,419,056
8,315,076
6,006,348
1,762,140
4,527,504
382,764
96,069,360
6,025,656
18,977,544
2,234,328
81,651,528
779,892
3,967,548
1,733,292
1,856,172
1,465,284
1,034,700
15,241,248
923,760
1,538,148
2,021,244
2,618,424
2,403,600

Annual rote
of turnover

October 196B from

-2
-2
3
1
-3
-1
8
1
4
4
10
4
2
-5
- 13
-2
1
- 12
4
3
6
-3
5
-6
-1
6
5
12

$283,060,224

0

10 months,
196B from
1967

- 1
6
11
9
9
25
61
5
22
3
11
21
7
19
8
11
22
- 1
21
4
9
6
22
9
19
23
10
18

0
16
32
4
14
12
9
19
7
18
13
14
15
4
11
7
6
10
17
10
13
10
12
7

16

15

4
5
8

Octobe r 31,

196B

October
1968

Septe mber

1968

October
1967

25.1
25.2
27.3
21.9
17.9
36.6
30.7
25.9
24.1
23.0
13.8
47.4
28.4
32.3
20.5
35.1
21.0
24.2
20.0
14.2
22.3
16.0
25.3
16.0
22.6
21.4
22.8
20.6

26.3
25.6
26.4
22.0
19.5
36.7
30.5
25.0
24.3
22.5
12.4
45.7
27.4
34.1
23.5
35.9
2U
28.6
20.3
13.6
20.2
16.5
24.2
17.3
23.7
20.4
20.9
18.5

29.8
25.8
26.0
19.9
17.8
31.5
24.2
25.6
21.0
22.7
12.1
44.5
28.1
29.7
20.8
33.6
19.9
25.4
16.2
14.4
21.5
16.6
23.1
16.0
21.9
19.2
21.4
18.3

33.4

33.3

31.5

$ 196,124
84,198
233,291
34,901
103,383
147,777
283,488
224,582
72,938
199,270
28,199
1,978,814
211,025
582,013
111,151
2,342,446
37,988
161,854
86,912
129,992
62,077
64,120
593,946
56,720
69,549
91,936
110,532
118,027
$ 8,417,253

~ Deposits of individuals, partnerships, and corporations and of statos and political subd ivisions.
- County basis .

GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
Eleventh federal Reserve District
(Ave ra ges of daily "gures. In millions of dollars )

BUILDING PERMITS

GROSS DEMAND DEPOSITS

=:::::::
VALUATION (Dollar amounts in thousands)
Percent change

Oct. 1968
from

NUMBER

10 months,
Area

Oct.
1968

~R I ZONA
Tucson •.•• •••.

Oct.
1968

10 mos.
1968
5,119

$

2,080

581
LOUISIANA
Monroe-West
Monroe ••• • •
76
Shreve port • •• •
521
leXAS
Abilene ••• . •..
48
Amarillo •••••.
130
Austin •..•••..
388
:oaumont . ••.•
226
rownsvill e ••••
100
410
~orr.us Christi ..
01 a s •••••.•• 1,960
~I Paso •. ••• ..
495
art Worth ....
600
~alvesto n •••••
95
oust on ••• •• • 2,226
laredo .......
30
130
M·bbock ••••••
O,dland •. •••.
61
p dessa •••••..
73
sort Arthur ••. •
91
San Ang olo •••
55
Tan Antonio • • . 1,189
Wltorkana • ...
41
287
Wkh%~' i:~il; : :
57

721
4,083

1,374
2,000

455
1,171
4,009
1,579
1,023
4,072
17,926
4,584
5,432
807
22,261
345
1,162
699
655
844
650
11,667
393
2,588
697

472
1,617
7,660
1,723
341
9,657
23,972
10,203
9,612
'10,708
40,316
305
3,933
626
650
737
484
8,395
257
842
415

lotal_24 cities ••

92,942

$138,379

----1

9,870

New office construction.

$

10 mos.
1968

Sept.
1968

Oct.
1967

1968 from
1967

27,618

42

-7

30

17,561
21,709

67
5

-13
- 1

7
-18

7,409 -60
17,547
0
102,7 19 -27
14,127
95
-4
4,456
184
43,952
246,334 -38
163
58,968
76,254
55
19,278 4,999
4
341,883
2,448 -24
117
29,199
10,489
50
6,150 -28
5,161
132
7,864
27
-3
104,347
12,767
76
14,604 -52
9,625 -21

59
9
48
9
35
321
-2 1
87
55
3,299
43
79
4
-46
-6
80
- 14
-20
-28
10
8

-16
-3
8
-9
48
49
- 1
21
- 1
95
-4
-36
5
- 16
8
62
- 13
12
271
-5
-48

$1,202,469

11

30

Date

Total

8,847
1966, October •.•
9,51 1
1967. October • ..
1968, May ••• ...
9,460
June •• ••••
9,548
9,742
July ..... . .
9,732
August • •••
Septemb er. 10.066
October ••• 10,201

TIME DEPOSITS

Reserve

Country

city banks

banks

Total

Reserve
city banks

Country
banks

4,064
4,448
4,382
4,453
4,554
4,523
4,722
4,751

4,783
5,063
5,078
5,095
5,188
5,209
5,344
5,450

5,726
6,457
6,950
6,964
7,059
7,208
7,255
7,394

2,595
2,753
2,840
2,847
2,921
3,049
3,058
3,11 6

3,131
3,704
4,110
4,117
4,138
4,159
4,197
4,278

VALUE Of CONSTRUCTION CONTRACTS
(In millions of dollars)
January-October

Area and type

October
1968

September
1968

August
1968

196B

FIVE SOUTHWESTERN
STATES' ........ .... ....
Resi d ential building ••.••..
Nonresidential building • ••.
Nonbullding construction .• •
UNITE D STATES ... ........ .
Resid ential building ••• •• ..
Nonresi dential building . ...
Nonbuild ing construction •• .

501
225
179
98
6,171
2,408
2,370
1,393

626
206
221
198
5,170
2,125
1,815
1,230

806
240
175
392
6,31 B
2,295
2,128
1,895

5,539
2,276
1,658
1,606
52,501
21,114
18,738
12,649

1967
4,939r
1,966r
1,694
1,279
46,151r
17,80Br
17,085
11,257

Arizona, Lou isiana, New Mexico, Oklahoma, and Texas.
r - Revised.

1

NOTE. - Details may not add to totals because of rounding.
SOURCE. F. W. Dodge, McGraw·Hill, Inc.

3

CROP PRODUCTION

COTTO N PRODU CTION

(In thousands of bushels)
TEXAS

Texas Crop Re porting Dis tricts

FIVE SOUTHWESTERN STATES'

1968,

1968,

estimated

Average

estimated

Average

Crop

Nov. 1

1967

1962-<16

Nov. 1

1967

1962-<16

Cotton : .. . . ... . .
Corn •.... •. .. •.

3,525
24,232
85,806
20,876
3,584
475
28,060
348,205
744
4,566
378,300
4,382
960
50,000

2,767
18,658
53,216
6,615
1,350
350
25,908
343,485
150
3,774
333,450
4,329
810
34,000

4,223
23,729
60,62 1
17,217
3,497
417
19,394
253,013
74 1
3,093
262,338
3,OB2
842
39,400

5,170
33,900
222,015
26,754
26,158
1,240
55,180
411 ,795
744
10,382
617,500
7,8 16
5,547
79,000

4,000
27,5 15
150,903
11 ,533
18,007
909
47,943
409,267
150
9,568
558,470
7,892
5,008
111 ,400

6,11 0
33,434
162,1 45
23,946
22,249
1,267
37,094
294,492
74 1
8,128
455,3 10
6,069
4,B07
94,000

Winter wheat ....

Oats •••••. . ••••
Barley •••••• • • •
Rye ••••. •• ••• ••
Rice s .. ..... . ...
Sorghum grain •. .

Flaxseed • •• ••••
Hay· • •• • •..••.•
Pea nuts5 • • •••• • •

Irish potatoes 6 •

• •

~::ae~s~~t.a.t~~~ ~.:
1
:!

(I n tho usa nds of bales -

Arizona, Louisiana , New Me xico, Ok lahoma, and Texas.

In thousands of bales,

a In thousands of bags containing 100 pounds each.
4

In thousands of tons.

[j

In thou sands of pounds .

Area

500 po unds gross weig ht)

=

1968,

1968

in dicate d

as percent of

Nov. 1

1967

1966

1967_

South Texas Pla ins . • • ••••••• •
Lower Rio Gran de Volley •• ••••

230
1,400
270
380
20
410
25
45
165
60
60
100
80
25
255

258
937
218
234
12
264
19
39
158
23
54
98
11 7
20
316

260
1,085
177
338
18
484
29
42
127
27
95
134
82
33
25 1

89
149
124
162
167
155
132
115
104
261
111
102
68
125
81

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

3,525

2,767

3,182

127

I·N l -S 2·N 2·S 3 4 S·N 5-5 6 7 SoN 8-S 9 10·N 10·S -

Northern Hig h Plains •• •• ••• ...
Southern High Plains . ••...••••
Red Bed Plains ••••• ••• ••.. ••
Re d Bed Plains • • •• .• .. ••••••
Western Cross Timbers . . . . ... .
Bl a ck an d Grand Pra iries.• • . .•

East Texas Timbered Plains ....
East Texa s Timbered Plains ....
Trans-Pecos .. . .. .. ... . ......
Edwards Platea u•••• • .. •• •• . •
Southern Texas Prairies .• .. ...

Southern Texas Prairies . ... .. .
Coasta l Prairies ••. ... . • ......

-

SOURCE : U. S. Depart ment of Agriculture .

• In thousands of hundredwe ight .
SOURCE: U.S. Deportment of Agriculture.

DAilY AVERAGE PRODUCTION OF CRUDE Oil
( In thousa nds of ba rre ls)

==================================================~~
Percent change f~

CASH RECEIPTS FROM FARM MARKETINGS
(Dollar amo unts in thousa nds)

Area

ELEVENTH DiSTRiCT • • ••. •••

January-Se ptem ber

1968

Area

Arizona ..... . ....... . .. .. . .

$

Louisiana .• . ••••••• . ••..• • . •
New Mexico ... o • • • • • • • • • • • • •

Oklahoma • •• ••••••. •• •• • •. •
Texa s ... ..... ... ..

o ••• o ••••

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

333,200
344,865
142,424
582,723
1,840,171

$ 3,243,383
$29,724,988

Percent

1967
$

Texas .... . . .. .. ... .. . ..

Gulf Coast • . • •••••.•••

cha nge

341,389
320,611
136,3 18
565,819
1,736,966

-2
8
4
3
6

$ 3,101 ,1 03
$29,173,089

5
2

West Texa s . . .... ... ..

East Texas (pro per) •• • ••
Panhandle ••••••••••• •
Rest of Sta te •• ••• •. •.•
Southeastern New Mexico ..
Northern Louisiana ••••• . .•

OUTSIDE ELEVENTH DISTRI CT
UNITED STATES •• •••.•• • •••
p -

October
196 8p

September
1968p

October
1967

September
1968

3,487.6
3,029.3
608.3
1,409.7
142. 1
85.1
784.1
320.3
138.0
5,549.9
9,037.5

3,491 .1
3,03 6.4
604.6
1,420.0
142.9
88.4
780.5
316.3
138.4
5,556.0
9,047.1

3,614.6
3,147.0
61 5.7
1,468.5
143.4
94.8
824.6
319.5
148.1
5,387.2
9,001.8

-0.1
-.2
.6
-.7
- .6
-3.7
.5
1.3
-.3
- .1
- .1

October

19~

_3.5
_3.8
_ 1.2
_4.0
_ .9
_ 10.2
_4.9
.3
_6.8
3.0
.4

-

Pre liminary ,

SOU RCES: American Petroleum Institute .

SOURCE: U.S. Department of Agricult ure .

U .S. Burea u of Mines.

Federal Reserve Bank of Dall as.

NONAGRICULTURAL EMPLOYM ENT
INDUSTRIAL PROD UCTI ON
(Se asona lly adiusted indexes, 1957·59

Five Southwestern States'

= 100)

==============================================~
Percent cha nge

Area a nd type of index

October
1968p

Septem ber
1968

August
1968

October
1967r
Type of employment

TEXAS

Utilities .. • •••...•••... . .••. ...

169.4
194.8
208.8
185.5
123.6
214. 1

168.9
194.0
208.6
184.3
123.7
214.1

168.6r
190.5r
206.9
179.5r
126.2r
224.9r

160.3
179.1
189.0
172.5
124.2
207.6

UNITED STATES
Totol in dustria l production . . • .. .
Manufacturing ... . . .. ... ..... ..
Durable •••••• •••••••••••••••
Nondurable • • •• • ••• • • • •• • •• ••
Mining •... . .... .. .. . . ... .. . ..
Utilities • •• • • • • • • •• ••• • •• • •••• •

165.0
166.8
169.2
163.9
121 .8
202.2

164.4
165.6
167.6
163.0
127.4
203.0

163.9
164.9
167.0
162.3
129.6
201.1

157.2
158.5
160.7
155.8
122.8
1 B8.7

Total in d ustria l production . . . •..
Manufacturing . •. ....... . . . ....

Durable •• •• • . • ••• •• • •••• •• ••
Nondurable • • •••••••••• •• .• • •
Mining . . • . . . . .. .. . ... ........

Preliminary.
Rev ised.
SOURCES : 80ard of Govern ors of the Fe dera l Reserve System.
Federa l Reserve Bonk of Dal las .

p r -

4

Nu mber of persons

- O
- ct-o-b-e-r--S-e-p-te-m-b~e-r--O
-ct-o-b-e-r1968 p
1968
1967r

~
Sept.
1~~7
1968 _ _ _

------------------~--------------------

To~~;~n~~di~~llt~ ;~lworkers..

Ma nufac turing • • • •• • • •• . •
Non ~~nufacturing.. . • .• • •

~~~';t~~cii~~:::: : ::::::

6,028,200
1,11 5,900
4,91 2,300

m:~gg

5,995,900
1,11 4,700
4,88 1,200

~~~:!gg

5,787,300
1,069,100
4,7 18,200

0.5
.1
.6

m:~gg -.2:~

~:~
4.1
5.5

2.1
Transportation and
28
public utilities........
444,200
446,100
432,1 00
-.:
3:2
Trade .... ...... .. . . . . 1,361,400
1,360,200
1,3 19,500
·0
3.6
Finance... . . .. . . • • • • . •
289,700
289,600
279,700
·2
5.7
Service.. . . ..... . .... .
925,600
924,100
875,400
2·9
5.0
___G
_o_v_e_r_nm
_en_t_._._
• •_._._._._. _. _. _ l_,2_6_8_,_10_0___1_,2_3_2_,4_0_0_ _1_,_20_ 8_,_2_00_____•___
--Ar izona, Lo uisiana, New Mexico, Oklah oma, and Texas.
Prelimi nary.
Revised.
SOURCE : State emp lo ymen t agencies.
1

p r -

annua
s a emen

deral reserve bank 01 dallas

FEDERAL RESERVE BANK
OF DAL.LAS

To the Member Banks in the
E leventh Federal Reserve District:
The Statement of Condition and the earnings and expenses of the
Federal Reserve Bank of Dallas for the year 1968, with comparative
figures for 1967, are shown herein. Lists of the directors and officers of
the Bank and its branches as of January 1, 1969, are also included.
A review of economic and financial developments in the Nation
and the District during 1968 is being presented in the January 1969
Annual Report Issue of the Business Review of this Ballk.
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,

P. E.

COLDWELL

President

statement 01 condition
Dec. 31, 1968

Dec. 31, 1967

ASSETS
Gold certificate account . ............. . . . ................. $ 344,103,657
Redemption fund for Federal Reserve notes ... . . .. . ... .. ... . .

$ 318,182,506
70,247,329

344,103,657
Total gold certificate reserves .... .. .... . .. . . . . ... .. . . .
Federal Reserve notes of other Banks . . . . . . . . .
. .... . . . .
43,242,700
Other cash .. .... . .
.. ....... ..
. ....... .
11,513,277
Discounts and advances ....... . . ... ..... . ........ . ... . . . .
5,300,000
U.S. Government securities:
798,246,000
Bills . . . .. ...... '" . , . . . .............. .. ... .... . ... .
Certificates .. . . .. . .. . . ..... . . . ...... .. . . . . . ........ .
Notes . .... . . ....... . ........ . . . .. . .. .. .. . . . ....... . 1,221,704,000
232,989,000
Bonds .... . . . ....... . .

388,429,835
30,530,500
13,676,797
5,800,000

1,125,269,000
254,434,000

2,252,939,000

2,047,513,000

2,258,239,000
Total loans and securities ................ .
577,047,041
Cash items in process of collection . . . . . . . . . . .
. .... . ... .
8,664,214
Bank premises . ........ . . . ..
. . .. . .. . . . . . . ........ . .
137,692,922
Other assets ...... . . . .... . ... .

2,053,313,000
626,215,095
9,037,370
106,066,517

------

Total U.S. Government securities . . .. .

TOTAL ASSETS ..

667,810,000

.... $3,380,502,811

$3,227,269,114

Federal Reserve notes in actual circulation ........ . ... . ...... $1,575,001,366
Deposits:
Member bank - reserve accounts ... . ... . . . . . .. . . ...... . 1,229,448,111
U.S. Treasurer - general account . . . . . . . . . . . . . . . .... .. . .
572,920
. .......... . ..... . . . . . ... . .. .
Foreign . .. . ..
12,540,000
Other . . . . ................... .. . . .... . .... . .. .
10,624,865

$1,432,827,205

LIABILITIES

Total deposits .....
Deferred availability cash items.
Other liabilities ..... .
TOTAL LIABILITIES

1,149,734,038
61,322,616
8,120,000
9,182,179

1,253,185,896
464,327,688
16,456,361

1,228,358,833
485,310,241
11,845,535

3,308,971,311

3,158,341,814

35,765,750
35,765,750

34,463,650
34,463,6~

CAPITAL ACCOUNTS
Capital paid in
Surplus ..... .
TOTAL CAPITAL ACCOUNTS .. ... .......... . . . .

71,531,500

68,927,300

TOTAL LIABILITIES AND CAPITAL ACCOUNTS ........ . ... $3,380,502,811

$3,227,269, 1 ~

earnings and expenses
1968

1967

CURRENT EARNINGS
.. . . .. . . . . . . . .... $ 1,215,553
. .. . ........ . ... . 112,264,985
. . .. . . .......... .
4,364,788
........... . .. . . .
34,700
TOTAL CURRENT EARNINGS . . . .. . .... .... ...... .. . . . . 117,880,026

Discounts and advances .... . . ... .. . .. ..
U.S. Government securities ..... . .. .. ....
Foreign currencies . . . . . . . . . . . . . . . . .
All other ... . ..... . ........ .. . .... ...

--~--.:....-

$

175,641
88,410,349
1,464,582
35,223
90,085,795

CURRENT EXPENSES
Current operating expenses ........ . . .... . . .. ........... . .

11,661,711
815,298

Assessment for expenses of Board of Governors .

Federal Reserve currency:
969,695
Original cost, including shipping charges ....... .
Cost of redemption, including shipping charges ............. _ _ _15,960
~_
13,462,664
Total .... . ... .. ... . .. . . . . ............... . ....... .

11,197,900
625,596
1,032,264
29,501
12,885,261

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

905,737

NET EXPENSES . . .. . . . ... . ... . ........ . ....... .. .. .

12,556,927

909,410
11,975,851

105,323,099

78,109,944

-----.:....-

--~---'---

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

33,593

30,855

All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
461,514
------'-495,107
Total additions

83,126
113,981

Profit on sales of U.S. Government securities (net) . . . . . . . . . . .

13,040

5,424

482,067

108,557

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

105,805,166
2,118,480

78,218,501
2,027,223

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

102,384, 586

74,941,628

Transferred to surplus . ...... . ................ . . . .......
. . . . . . . . . . . . . . ..
Surplus, January 1. . . . . . . . . . . . . . . . . . . .

1,302,100
34,463,650

33,214;000

. . . .... . ..... .. ... . ... $ 35,765,750

$ 34,463 ,650

Deductions from current net earnings . .... .

........

Net additions ........ .

Surplus, December 31 . . . . . . . . . . ..

- - -- -

1,249,650

directors
FEDERAL RESERVE BANK OF DALLAS
CARL J. THOMSEN

(Chairman and Federal Reserve Agent), Senior Vice President, Texas Instrum ents

MAX LEVINE
CHAS. F. JONES
J. V. KELLY
MURRAY KYGER
CARL D. NEWTON
A. W. RlTER, JR.
HUGH F. STEEN
C. A. TATUM, JR.

(Deputy Chairman), Retired Chairman of the Board, Foley's, Houston, Texas

Incorporated, Dallas, Texas

President, Humble Oil & Refining Company, Houston, Texas
President, The Peoples National Bank of Belton, Bellon, Texas
Chairman of the Board, The First National Bank of Fort Worth, Fort Worth, Texas
President, Fox-Stanley Photo Products, Tnc., San Antonio, Texas
Fresident, The Peoples National Bank of Tyler, Tyler, Texas
Presid ent , EI Paso Natural Gas Company, E I Paso, Texas
President and Chief Executive Officer, Texas Utilities Company, Dallas, Texas

EL PASO BRANCH
GORDON W. FOSTER
ROBERT W. HEYER
ROBERT F. LOCKHART
C. ROBERT McNALLY, JR.
JOSEPH M. RAY

Vice President and Director, Farah Manufacturing Company, Inc., E I Paso, Texas
Director and Consultant, Southern Arizona Bank & Trust Compa ny, Tucson, Arizona
President, The State National Bank of E I Paso, EI Paso, Texas
Rancher, Roswell, New Mexico
H. Y. Benedict Professor of Political Science, The University of Texas at E I Paso,
EI Paso, Texas
President, The Security State Bank of Pecos, Texas
President, The Clovis National Bank, Clovis, New Mexico

ARCHIE B. SCOTT
JOE B. SISLER

HOUSTON BRANCH
R. M. BUCKLEY
HENRY B. CLAY

President and Director, Eastex Incorporated, Silsbee, Texas
President, First Bank & Trust, Bryan , Texas
Cha irman of the Board, Bank of the Southwest National Association , Houston,
Houston, Texas
President and General Manager, Peden Iron & Steel Company, Houston, Texas
President, The First National Bank of Port Arthur, Port Arthur, Texas
President, Tex as National Bank of Commerce of Houston, Houston, Texas
President and General Manager, Texas Farm Products Company, Nacogdoches, Texas

A. G. McNEESE, JR.
GEO. T. MORSE, JR.
W. G. THORNELL
JOHN E. WHITMORE
M. STEELE WRIGHT, JR.

SAN ANTONIO BRANCH
W. A. BELCHER
JAMES T. DENTON, JR.
TOM C. FROST, JR.
RAY M. KECK, JR.
LLOYD M. KNOWLTON
FRANCIS B. MAY

Veterin arian and Rancher, Brackettville, Texas
President, Corpus Christi Bank and Trust, Corpus Christi, Texas
President, The F rost National Bank of San Antonio, San Antonio, Texas
President, Union National Bank of Laredo, Laredo, Texas
General Manager and Pa rtner, Knowlton's Creamery, San Antonio, Texas
Professor of Business Statistics and Consulting Statistician to the Bureau of Business
Research, The University of Texas, Austin, Texas
Chai rm an of the Board and President, State Bank and Trust Company, San Marcos, Texas

J. R. THORNTON

FEDERAL ADVISORY COUNCIL MEMBER
JOHN

E. GRAY

I

President, First Security National Bank of Beaumont, Beaumont, Texas

officers
FEDERAL RESERVE BANK OF DALLAS
P.
T.

E.

COLDWELL,

President

W. P LANT, First Vice President

E. W.

E. BOHNE, Senior Vice President
and Cashier

Roy

L. CAUTHEN, Senior Vice President
and Colllrol/er

JAMES

1. L.

COOK,

GEORGE F. RUDY,

Senior Vice President

E.

Vice President
and Secretary ot the Board
W.

COWAN,

Vice President

T.

GREEN,

Vice President

RALPH

CARL H. MOORE,

W.

REED,

SPRENG,

Data Processing Officer
Assistant Cashier
Assistant Cashier

D. INGRAM, Assistant Cashier
JESSE D. SANDERS, Assistant Cashier
GEORGE C. COCHRAN, III, Assistant Counsel
and Assistant Secretary ot the Board
HERMAN B. HUDSON, Assistant General A /lditor

Vice President

SULLIVAN,

Director ot R esearch
Chief Examiner

RUSSELL,

RICHARD

Vice President and
Assistant Secretary ot the Board
R.

O.

ROBERT A. BROWN,

TONY J. SALVAGGIO,
THOMAS

E.

ROWE,

SIDNEY J . ALEXANDER, JR.,

Vice President

W.

Assistant Vice President

Z.

J.

Vice President

M. PRITCHETT,

FREDRIC

A. THAXTON, JR.,

T.

Vice President

A.

Assistant Vice President

JAMES

PARKER,

JAMES

Vice President

General Auditor
General Counsel

ROBINSON, JR.,

E.

HARRY

ROB ERT H. BOYKIN,
LEON

VORLOP, JR.,

ARTHUR H. LANG,

Vice President

EL PASO BRANCH
FREDRIC
FORREST

E.

COLEMAN,

W. R EED, Vice President ill Charge
THOMAS H. ROB ERTSON,

Cashier

Assistant Cashier

HOUSTON BRANCH
J.

L.

COOK,

Senior Vice President in Charge

RASCO R . STORY,
JOHN

N.

AINSWORTH,

Cashier
R.

Assistant Cashier

J.

SCHOENHOFF,

Assistant Cashier

SAN ANTONIO BRANCH
CARL H. MOORE,

V ice President

FREDER ICK J . SCHMID,
THOMAS C. COLE,

Assistant Cashier

ill

Charge

Cashier
ROBERT

W.

SCHULTZ,

Assistant Cashier

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