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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 , ~l401 f V lor~