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MONGJrHLG)[
REVIEW
FEDERAL
RESERVE
Vol. 38, No.2
BANK
o
F
DALLAS
February 1, 1953
DALLAS, TEXAS
FORESTS -
AN IMPORTANT ASSET OF THE SOUTHWEST
H.
Agricultural Economist
Federal Reserve Bank of Dallas
CARL
MOORE,
Early settlers of the southwestern plains soon learned the
value of trees as a sonrce of fuel, bnilding material, shade,
and protection from the wind and sun. In other areas, where
trees had to be cleared from the land before crops could be
sown, forests sometin1es were considered a nuisance. Today,
growing trees on a commercial scale is rapidly becoming an
important enterprise on many farms of east Texas, eastern
Oklahoma, and parts of Louisiana; in the mountain timbered
areas of Arizona and New Mexico, a program of forest con·
servation has been in operation for half a century.
In the Southwest, 10 percen t - about 37,000,000 acres ' of the total land area is commercial forest land, i.e., land
that is producing or is capable of producing commercial
timber. In Louisiana and the eastern portion of Texas, commercial fores ts cover 56 percent of all land. These figures do
not include approximately 30,000,000 acres of mesquite, oak,
and cedar brakes in the western portions of Oklahoma and
Texas and nearly 29,000,000 acres of pinyon-juniper and
more than 4,000,000 acres inaccessible and reserved from
cutting in New Mexico and Arizona. While posts, fuel wood,
and a limited amount of timber are cut from parts of these
regions, their productivity is considered to be so low that
they are not classified by the Forest Service as connnercial
timber areas.
It is of interest that the acreage of commercial forests in
the five-state area is only slightly smaller than the 41,000,000
acres of cultivated crops harvested in the Southwest in 1952.
In Louisiana, forest lands occupy five tin1es as large an area
as do cultivated crops.
reservations. There are 13 national forests in these states,
comprising a total of 20,4.95,000 acres. The Carson, Santa
Fe, Cibola, Lincoln, Gila, and parts of the Coronado and
Apache National Forests are in New Mexico_ The Kaibab,
Prescott, Coconino, Tonto, Sitgreaves, Crook, and parts of
the Apache and Coronado are found in Arizona. Actual logging operations in national forests and other areas supervised by the Forest Service are done by private individuals
or firms under a working agreement with the Forest Service_
In Texas, Oklahoma, and Louisiana, 93 percent of the
commercial forest land is privately owned, and it is estin1ated
that in east Texas and parts of Louisiana more than half
of thc connnercially valuable timber land is in holdings of
less than 3,000 acres. There are six national forests in these
three states: the Kisatchie in central Louisiana (538,000
acres); the Ouachita (western portion) in southeastern
Oklahoma (176,000 acres) ; and the Sam Houston (161,500
acres), Davy Crockett (161,500 acres), Angelina (154,200
acres) , and Sabine (184,500 acres) in southeast Texas.
Prior to 1934., there were no federally owned lands in
Texas, inasmuch as the State r etained title to all public lands
under the Treaty of Annexation of 1845. In 1934, the Texas
Legislature invited the Federal Government to establish
national forests in Texas through the purchase of certain
lands where forestry conservation measures were needed
urgently. Under this program, 1,714,000 acres have been
approved for purchase by the Federal Government and are
included within the boundaries of four national forests. Only
about 661,800 acres have been purchased to date.
Ow nership of Commercial Forest Lands
COMMERCIAL FO REST LAND, BY OWNERSHIP
lin thousands of Clcres)
About 82 percent of the commercial forest lands in
Arizona and New Mexico is federally owned or managed,
with most of the area included in national forests or Indian
'The United States Forest Service Reappraisal 0/ 1945 provides the
most recent data on area and ownership of commercial forests. Figures
from the survey are the basis 0/ this report. They were reviewed, however, by forestry officials in the area and are believed to be reasonably
current.
Stote,
Total all
Federally
owned or
managed
State
own~rship,
Arizona •••.••• • •
2.815
16.169
2,744-
3,465
4,308
10,788
2,405
louisiono •••.... .
New Mexico .....
Oklahoma . • .... .
Te,;05 • • • • • • • • • •
747
619
696
Pri'l'ote
county,
a,d
Industria l
municipal
Totol
30
265
149
23
16
41
15,157
911
3,666
10,076
Form
and other
36
5
2,969
12,188
218
2,854
7,263
693
812
2,813
SOURCEI Based on Uniled States Forest S.r... ice Reappraisal, 1945
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
MONTHLY BUSINESS REVIEW
18
or denuded. Efficient utilization of this forest land would add
materially to the income of many communities.
Value of Forest Products
The mill value of forest products sold in 1952 in the
Southwest is estimated at $237,000,000 - three times the
value of forest products marketed in 1939. During the process
of milling, this value is more than doubled, so that the estimated dollar value of milled forest products of the Southwest in 1952 exceeded $500,000,000.
Lumber constitutes the largest single item, accounting for
virtually all income from forest products in Arizona and
New Mexico and about two·thirds of the total in Texas,
Louisiana, and Oklahoma. Sales of pulpwood have become
an important item in the lalter states during the past decade
and in 1952 represented about one· fourth of all sales of
forest products in Texas and Louisiana and about one·
seventh in Oklahoma. In 1939, pulpwood sales were only
about 10 percent of the total in Texas and Louisiana, while
no sales were reported in Oklahoma. Other forest products
of the Southwest include fuel wood, poles, posts, veneer,
cooperage stock for making barrels, and railroad ties.
Income from the sale of forest products in the Southwest
represents a relatively small proportion of all agricultural
income. For example, the total in 1952 is equal to about 6
percent of cash receipts from farm marketings (excluding
forest products sold by farmers and ranchers). However, in
Louisiana, where forestry occupies a more prominent position in the economy, sales of forest products were equal to
25 percent of cash receipts from farm marketil)gs. Estimates
for east Texas indicate that sales of forest products in that
area were only slightly lower than the total sales of field
crops, livestock, and livestock products.
The importance of forests to the economy of eastern sections of the Southwest is emphasized further by the potential
earning capacity of much of the land if it were properly
stocked with trees and managed for a sustained income. A
survey by the United States Forest Service shows that of the
commercial forest land, 15 percent in Texas, 20 percent in
Louisiana, and 26 percent in Oklahoma are poorly stocked
ESTIMATED VALUE OF FOREST PRODUCTS SOLD
t.lllLIOHS O~ OOLLARS
MILLIONS OF DOLLARS
120
'2 0
100-1
1939
-----------~~~4100
\:::::: :1 '952
ao~~~---------~~--~~ao
«
The wide variation in geographic location, tree species,
and management practices of the forest areas in the South·
west makes it desirable to divide the region into two sections
for discussion. The western area includes the mountain
timbered lands of Arizona and ew Mexico. The eastern
forest lands are composed of the timbered areas of the
coastal plains and adjoining hill lands of east Texas, eastern
Oklahoma, and Louisiana.
Mounta in Timbered Areas of Arizona
and New Mexico
Virgin stands of ponderosa pine stretch for nearly 300
miles from the Gila wilderness of southwestern New Mexico
in a northwesterly direction to the Grand Canyon of the
Colorado River in northwestern Arizona. The forests are
unbroken for miles in many areas, completely covering the
mountain slopes. Other stands of ponderosa pine, spruce,
and Douglas.fir are found in many sections of both states.
The total forested area in Arizona and New Mexico
amounts to 39,540,000 acres, of which only 6,300,000 acres
are classified as "commercial saw·timber forest." There are
saw·timber stands on an additional 4,440,000 acres that
would be classified as commercial saw timber except for their
inaccessibility or location in areas where cutting is restricted.
The remaining 28,800,000 acres are noncommercial wood·
land from which only limited quantities of minor products
are cut.
The forests of the area are softwoods, except for fairly
extensive stands of quaking aspen which, as yet, has not become commercially important. The aspen of Arizona and
New Mexico has been found to produce an excellent quality
of excelsior, and three small excelsior mills, cutting about
2,000 cords annually, have been established during the past
decade, with production going largely into air cooler pads
and packing for fruit and furniture. Two sawmills in northern
New Mexico cut aspen timber during 1951 and 1952, the
lumber going largely for crating and furniture squares and
a small amount into panel stock for interior finish.
Virtually all of the forest land is in the mountain areas at
elevations between 5,000 and 11,500 feet. Rainfall below
5,000 feet is insufficient to support tree growth, and the
upper timber line is generally reached at about 11,500 feet.
COMMERCIAL FOREST LAND, BY STAND SIZE
Gol------------~ l---.~._I GO
(In thousands of acres)
401-------------{.~~:~~:--~~40
2:
JH
JJ
ARIZONA
NEW ME X ICO
.....F.'l
OKLA HOMA
tic-- t
r20
LOUI~NT- TE~L- 0
Seedling
and
Stote
Tola r
Sow timber
Arizona •••••••.•
2,815
16,169
3,465
4,308
2.735
10,041
2,615
2,059
10,788
7.109
l ouisiana . .•... . .
New Mexico .. ...
Oklahoma •••... .
Texas ..•.......
Pol. timber
sapling
50
1,502
1.400
700
830
1,149
297
942
SOURCE, 80sed on United States Forest S.r'fice Reappraisal. 1945.
Poorly stocked
seedling and
scpling or
denuded
30
3,226
150
1,122
1,588
4
MONTHLY BUSINESS REVIEW
19
T E XA S
COMMERCIAL FOR EST ARE AS
The commercial forests, where ponderosa pine, Douglas-fir,
and spruce trees grow abundantly, are found at altitudes
from 6,500 to 10,000 feet It is from this region that virtually all of the saw logs are cut Very little timber is cut
above 10,000 feet elevation because slopes are generally too
steep and rocky to permit logging to be done economically
and the standing timber is more valuable for watershed protection and as soil cover to prevent erosion than it would be
if sa wed inlo lumber. The pinyon.j uni per, Arizona cypress,
and the evergreen-oak-type trees found below altitudes of
around 6,500 feet provide fuel wood and posts bUl are not
suitable for commercial timber production.
The best-known forest management practices are used in
the commercial timber areas, and cuttings are made with
due regard to improving the stand, maintaining the forest
in a productive state, and providing the logging operators
with a sufficient volume from each area to make an economical operation. Nearly all logging areas in national forests are
managed on a sustained yield basis. It has been necessary to
make culs of 35 to 60 percent of the volume from virgin
stands to remove overmature and decadent timber and convert the area to a stand of more desirable, younger, fastgrowing trees. Regular annual cuttings have been main~ Lained by rotating the harvest between different sections
, within the harvesting area on a periodic cutting basis.
Nearly 85 percent of the commercial forest land in this
region is classified as saw timber. The total volume of saw
timber is estimated at about 25 billion board feet. This
represents the net volume of the potential saw logs in trees
with a diameter at breast height of 12 or more inches. The
estimated annual growth added to the saw·timber volume is
about 370,000,000 board feet, or about 11;2 percent of the
total volume. Growth on national forest stands which have
been cut over is between 2 and 2lj2 percent of total volume
per year, but in many of the virgin stands where no cuttings
have been made, growth is largely offset by loss in old decadent trees. Over the area, cutting is now about equal to
Lhe computed sustained yield, but this - at least in the
national forests - will increase as the first cutting is completed and the entire stand is placed in a growing condition.
I n recent years about 370,000,000 board feet have been
cut annually.
Timbered Areas of Ea stern Oklahoma , East Texas,
and louisiana
The pineywoods and boLtomland and mountain hard·
woods of eastern Oklahoma, cast Texas, and Louisiana
represent the western end of the Southern Pine Belt, which
extends from Virginia to Texas and produces about 40 percent of the lumber cut in the United States and more than
one-half of the Nation's pulpwood. The pines and other soft·
woods represent about 60 percent of the standing timber in
Oklahoma and Texas and about 30 percent in Louisiana.
About 18 percent of all southern pine lumber is cut in this
three·state region.
20
MONTHLY BUSINESS REVIEW
Some small areas of virgin longleaf pine are stilI found in
east Texas and Louisiana, but most of the conifers are in
faster· growing second.growth stands, with loblolly and short·
leaf pines predominating. All of these pines as a group
usually are referred to as "southern yellow pine." They are
generally found on the sandier, better·drained soils and are
familiar to all who have traveled in east Texas or western
Louisiana. For the most part, in Texas the piney woods section is confined to about 36 eastern counties. The only exception is the area of approximately 85,000 acres in Bastrop,
Fayette, and Caldwell counties east and southeast of Austin
known as " The Lost Pines." This stand is composed almost
entirely of loblolly pine and is unusual in that the rainfall in
that area is from 10 to 15 inches lower than in any other
area where this species is found.
The hardwood trees consist principally of oaks and gums.
The better stands usually are found along the bottoml~nds
of streams. The more abundant lesser species include hickory,
elm, ash, willow, cypress, hackberry, and cottonwood. In
this section of the Southwest the volume of oak timber exceeds that of all other hardwood species by a wide margin.
About 62 percent of the total area of commercial forests
is classified as saw·timber size. This classification applies to
stands with a net volume of at least 600 board feet per acre
in softwood species 9 inches or larger in diameter at breast
height and hardwoods 13 inches in diameter. Eleven percent
is classified as pole timber - trees 5 to 9 inches in diameter
- and 8 percent as seedlings or saplings less than 5 inches
in diameter. Nineteen percent, or about 6,000,000 acres, is
poorly stocked or denuded. Heavy cutting and lack of attention to restocking or care of forest lands until recent years
have left the timber stand of this area with a relatively high
percentage of young trees. Practically no virgin stands remain. Much of the land that should have been replanted with
pine after the original cutting has grown up to poor·quality
hardwoods. In many respects, the forestry of the area is in
its infancy, as it has just begun to build permanent forests
that will yield a sustained level of production year after year.
There are between 65 and 70 billion board feet of sa w
timber in this region. Abont two·thirds is softwood in Okla·
homa and Texas, and two·thirds, hardwood in Louisiana.
Limited data on the area covering the period 1935 to 1948
suggest that the total volume increased in some areas, such
as southeastern Texas and southcentral Louisiana, but de·
clined in other regions, such as northeastern Texas and
northwestern Louisiana.
I t is estimated that each year about 3.7 billion board feet
- equal to about 5% percent of the saw·timber volume are added to the staud by new growth. The faster·growing
softwoods add about 7 percent to their saw·timber volume,
while hardwoods add only about 4 percent. Most estimates
of the annual drain , or harvest, of the saw·timber area are
about equal to the volume of new growth - 5.5 percent of
the saw·timber volume. However, there is considerable varia·
tion in this relationship between drain and growth among
different species, trees of different size and quality, and from
area to area and year to year. General economic cond itions,
species preference of consumers, quality requirements, and
other factors influence the amount and quality of timber
products used.
In addition to the 65 to 70 billion board feet of saw timber,
it is estimated that there are an additional 10 billion cubie
fee t in trees sma ller than saw·timber size or of inferior
quality and in the tops and main branches of saw·timber
stands. Much of this represents potential saw·timber volume,
if the smaller trees are left to grow. It also is a source of
timber for other uses, such as pulpwood, fuel, poles, posts,
and ti es. A substantial volume is harvested each year for
these purposes.
Considering all of the timber uses, estimated annual drain
is slightly less than annual new growth. This indicates a more
judicial use of our timber resources than was true a few
decades ago. However, much can be done to improve further
this relationship and to build a reserve of timber resources
for future years when the pressure of population and the
demands of industry may easi ly increase our need for lum·
ber and other timber products.
Products of the Forest
Forest products that are used in industry and agriculture
include lumber, veneer, pulpwood, poles, posts, railroad ties,
and fuel. Lumber is by far the most important in both volume
and value. More than half of the total volume of wood cut
goes into lumber, and the value of timber used for lumber
LUMBER PRODUCTION
c::J LOU ISIANA
rzz!3 OKLAHOMA
c:::::J
NEW MEXICO
c=::J
ARIZONA
~TEXAS
t
MONTHLY BUSINESS REVIEW
accounts for about two-thirds of the total value of all forest
products_
In 1951, about 6 percent of thc Nation's lumber was produced in the Southwest, an amount substantially less than the
15 percent contributed by thc area in the mid-1920's_ The
change has been due primarily to a decline in production of
lumber in Louisiana_ In recent years the Southwest has produced about 18 percent of all southern yellow pine lumber,
24 percent of the willow, and 10 percent of the oak_ Although
the total volume is relatively small, the area also produces
56 percent of all pecan and 25 perccnt of the sweetgum logs
cut in the United States_
Pulpwood used for making paper, paper products, and
rayon is the second most important forest product in the
Southwest. It is estimated that from 15 to 18 percent of the
total volume of timber cut is used for making wood pulp_
In a sense, pulpwood is a by-product of the forest, inasmuch
as trees are seldom grown for the specific purpose of producing pulpwood_ Thinning of stands and improvement cutting
of inferior trees, plus the utilization of tops and branches of
saw-log trees, provide virtually all of the pulpwood_ Capitalizing upon this use of wood enables the owner of a timber
tract to receive some income from his property many years
before the stand is large enough for saw-log operations_
The fast-growing southern pine trees, such as the loblolly and slash, can be cut for pulpwood about 15 years after
planting_ On the other hand, spruce, grown in the northern
areas of the United States and Canada and formerly the primary source of pulpwood, rcquires 50 to 60 years to reach
the same size_
The use of pulp wood has increa sed rapidly in recent years,
with an exceptionally sharp increase occurring in east Texas
during thc past decadc_ Thc three states of Texas, Louisiana,
and Oklahoma produced morc than 9 percent of the total
United States output in 1951, compUTed with 6 percent in
1939_ The 12 southern states in which most of the southern
pine is grown produced 56 percent in 1951 and 46 percent in
1939_ In 1951, Texas ranked eighth in the South and eleventh
in the Nation in pulpwood production_ Montgomery County,
Texas, with 84,726 cords cut in 1951, ranked eleventh in
pulpwood production in the South_
~
Much of the rapid increase in pulpwooc] production in
Texas stems from the development of techniques permitting
the production of newsprint from southern pine_ The pine
trees of the South have been used for many years in the manufacture of kraft pulp - the kind used for container board,
wrapping paper, bags, magazine papers, and specialtiesbut it was not until 1939 that southern pine was used commercially for the manufacture of newsprint_ In the spring
of that year the first pulp mill for commercial mannfacture
of lIe\\sprint using southern pine was opened in Lufkin,
Texas_ A great deal of research had gone into the develop-
21
PULPWOOD PRODUCTION
''oooI--__+---L---L--_t_--t--t
'----t-~~----~~'--_r----1_----+_4 600
~---~'----~-----.----+_----t---~--1 400
~~__+-----+----4_----_t_----L---~~200
,O.,L.--~--"·:.:-"· ..ii>.-"'--"'."-'.u;i";i.",,'!.!-'.:!-': ;"i'.i" ":':~ :':-~:':~' i;:~i.~;-'~- ~- - ';i- , ..-.- ,
3Q
~"l
1~"3
Ii'"
1947
li"9
t!f ~ 1
10
rnent of the processing methods, and sonthwestern newspaper
publishers had agreed to purchase each year at least 30,000
tons of newsprint made from southern pine_ This assured a
market, and production was begun in May 1939,
Since that date the original mill has increased its capacity
several times, and it now produces about 500 tons of pulp
daily_ A second mill has been built at Pasadena, Texas, which
manufactures high-grade paper for use in magazines_ Total
capacity of these two plants is now approxinlately 1,000 tons
of pulp daily, compared with 665 tons in 1946_
Recently, it was announced that a third pulp mill will be
constructed at Evadale, Texas, in Jasper County_ The preliminary announcement of this plant indicates that it will also
manufacture high-grade paper for use in magazines_
In Louisiana there are eight pulp mills, located at Shreveport, West Monroe, Elizabeth, New Orleans, Bogalusa, Bastrop, Spring Hill, and Hodge_ The total capacity of these
plants is about 4,500 tons of pulp daily, compared with a
little over 3,000 tons in 1946_ These mills draw pulpwood
from Texas, Oklahoma, Arkansas, Mississippi, and Louisiana_ About one-third to one-half of the pulpwood cut in
Texas is shipped to pulp mills in Louisiana for processing,
although Texas mills draw some of their pulpwood from
Louisiana_
Fuel wood represented about 20 percent of the volume of
wood cut a decade ago, but the almost universal use of
natural gas, coal, or oil in industry and the recent expansion
in the use of low-pressure gas for rural homes have reduced
the demand for wood fneL Today, wood-burning fireplaces
in urban homes and the use of slabs, edgings, and sawdust as
fuel in certain lumber mills represent the largest uses of wood
for fueL In 1948, it was estimated that fuel wood represented
only 13 percent oof the total volwne cut in east Texas_
22
MONTHLY BUSINESS REVIEW
Veneer has become a very important forest product. The
development of mechanical equipment to cut thin pieces of
wood, plus the improvement in adhesives that enable fabricators to glue several thicknesses of wood together to produce
a strong structure, opened up an almost entirely new field of
wood products. The process enables the furniture manufacturer to give a desired finish to an item without using solid
wood, which is more expensive and adds considerable weight.
Veneer·cut woods also are used in the mannfacture of boxes,
crates, and other containers which must be light in weight
and yet strong. In fact, until recent years this "package
veneer" was the major use, volumewise, of veneer. However,
plywood production is now developing rapidly.
The bonding together of two or more thin layers of wood
gives additional strength without increasing weight or volume. In recent years the shortage of certain structural steel
items has increased research in the use of laminated wood
beams and other structural parLs of buildings. In many instances, these products have compared favorably with metals
in strength and durability. Moreover, greater utilization of
timber can be achieved in making veneer and laminated
products, since short logs (usually called bolts) that would
not be suitable for lmnber production can be utilized.
Another forest product that long has been used by industry
is cooperage stock, usually cut from oak or some other hardwood and used in the manufacture of barrels. This still
represents an important use of timber, althongh on a much
smaller scale than a generation ago. Metal materials have
replaced it in many uses.
Cross ties for railroads take about 4 percent of the volume
of timber harvested in east Texas each year, and it is estimated that in the neighborhood of 4,000,000 ties are cut in
that region annually. Other forest products that are im·
portant include poles and fence posts. Thesc products usually
are treated with chemicals or creosote materials that make
them resistant to decay and insects. Such treatment, usually
under pressure, frequently triples or quadruples the useful
life of the poles or posts. Many farmers have devised homemade equipment for treating their own posts cut from the
farm woodlot.
In addition to these uses of forest products, the forested
areas also are valuable for recreational purposes and as an
important link in a sound water conservation program. The
recreational use of woodlands is of particular interest to
sportsmen and others who enjoy camping, fishing, hunting,
and hiking. The extent of this interest is indicated by the fact
that more than 25,000,000 persons annually visit our national
forests to use the recreational facilities. Many others make
frequent use of state and municipally owned parks.
Conservation of water resources has become increasingly
important in the Southwest, and while it is not possible to
evaluate accurately the importance of forests in reducing
runoff and maintammg the level of underground water
reservoirs, it is known that runoff is reduced sharply and
percolation of rainfall into underground reservoirs is facilitatcd by the cover of vegetation and residue provided by
forests.
Some Economic Aspects of Forest Production
A substantial portion of the forest products of the South·
west is grown on relatively large tracts owned by paper or
lumber mills. Many of these holdings cover thousands of
acres, and timber production is virtually the only use made
of the land. These firms, for the most part, recognize the
value of sound forestry management to provide continuous
timber production. Following proved management practices
enables them to prolong the productive life of their forest
land and, thus, to place their mill operations on a more permanent basis. Some of the important practices recommended
by foresters and used by progressive forest managers include
fire control, careful selection of trees for cutting, careful log·
ging operations to avoid unnecessary injury to younger
trees, and making provision for perpetuating the stand, either
through natural reseeding or planting of seedlings.
Similar practices also have proved to be profitable for the
small operators of commercial timber tracts and for farmers
in managing their woodlots. Timber production requires a
minimmn of labor and equipment prior to the logging operation and a relatively small investment. It does require the
development of a sound plan for the use of forest stands, in
order to protect the investment and to insure a reasonable
rcturn when the timber is of merchantable size.
The costs involved in establishing and managing a planta·
tion of trees, as well as the returns from timber products sold,
ESTIMATED VALUE PER ACRE OF AtTERNATIVE FOREST PRODUCTS'
Alterncfive prodlJth
Average
diameter
brea st high
(inches)
Yean after planting
Saw logs
o,d
Pulpwood
Saw logs
pulpwood
STUMPAGE VALUE
15 . •... . ........ . .•...... ..
20 .••.............•........
25 ..•.............••• . . ....
30 ..•. . ..•....•.. ••.•..... .
35 .. •.... •...... ..•. ..... ..
40 .. •...... . ..•... .•.......
45 . . ......•....•. . .. .......
50 ........•....•.........•.
55 ........•....•...........
60 .. ... . ... . .............. .
65 •• ...........•...........
6.1
7.7
9.2
10.7
12.2
13.7
15.2
$ 22
24
24
24
23
23
22
S1,070
$ 15
16.7
21
18.2
19.7
21.2
20
101
44
27
37
52
64
77
459
231
$348
$962
Total ••• •• .••.••••.•••• •
22
24
24
22
33
42
56
67
79
467
234
$
VALUE OF DELIVERED PRODUCTS
15.........................
20.........................
25.........................
30.........................
35....... . .•... ... ..•.. ....
40.........................
45.......... . ..............
50.........................
55....................... . .
60.........................
65 . ........................
Total .................. .
6.1
7.7
~2
10.7
12.2
13.7
15.2
16.7
18.2
19.7
21.2
$
89
95
95
93
91
89
84
79
406
176
39
63
80
102
122
138
810
397
89
95
96
68
07
99
118
134
146
844
409
$1.393
$1.751
$2.185
"
From slash pine plantations; based on 1950 prices.
SOURCE: United States Forest Service.
t
S
~
MONTHLY BUSINESS REVIEW
ESTIMATED ANNUAL RANGE FORAGE YIELD AND GRAZING CAPACITY'
Sou thwest louisiana
Green foroge
per acre
Stocking rol.
per animal
unit
(Pounds)
(Acre,)
(air d ry)
Age of plantation
(Ye(usj
1- 5 . ........... . ... . ...... .. ... .
6- 10 .. . .......•.........•.... • ...
11_15 .. . ... .. ..•....••.•.•..•.•..•
16-20 ..........• • ........• ........
21-25 .. ...... .. . .... . ............ .
26-30 •••••.....•. . •• •... •• . •.••...
31-35 •..••.•.• • •..•••..••. . ...•...
36-40 ....... . • ••. . , . . ..• . •....•. . .
41_45 ..•. . .....•....•....•...••...
46-50 .. .. ......• • . ..•... . •....•...
51_55 ...•........ .. ....• . .........
56-60 ............. ' .. . . . . ........ .
61-65 ............... . . . . . ........ .
575
525
125
150
150
160
160
175
175
200
225
275
400
13
14
58
49
49
46
46
23
Approximately eight cords of pulpwood per acre can be
harvested at each cutting. At the 1950 price of $3.00 per
cord, stump value, this gives a return of about $24 per acre
every 5 years, beginning in the fifteenth year after planting
- an amount 1.6 times the original investment, plus accumulated annual maintenance costs but exclusive of land cost or
valuation. The first cutting of lumber is quite small, but the
volume increases with successive cuttings.
One of the initial costs of establ ishing a tree plantation, of
course, is that of suitable land. Many farmers and other residents now own land as a part of their farms or in separate
tracts that would be most profitable if used to grow trees.
In addition to the value of forest products, the forested
land also can be used for grazing. This combination of
forestry and grazing is increasing rapidly in parts of east
Texas, eastern Oklahoma, and Louisiana. Some of these operations are quite large, with several hundred head of cattle
involved and thousands of acres of forest land leased for
pasture. Most of them, however, are on a relatively small
scale. During the spring and early summer months, usually
from March to June, the native grasses provide excellent
grazing. At this stage of growth, the forage is abundant and
nutritious, with the protein content ranging in the neighborhood of 11 to 13 percent. Cows frequently gain a pound per
day, and calves may increase in weight at the rate of 1112 or
more pounds per day. The accompanying table indicates the
estimated volume of range forage produced annually and the
recommended stocking rates. Grazing becomes very poor
in the fall and winter months, and cattle should be moved to
other areas during this period.
Another initial cost is that of the seedlings with which to
plant the area. In Louisiana, slash pine seedlings can be purchased from the Louisiana Forestry Commission for about
$2.50 per thousand. With a recommended planting rate of
about 900 trees per acre, this item costs about S2.25 per
acre. The seedlings can be machine·plantcd, on a custom
basis, for about $4.25 per acre giving a total per-acre cost
of $6.50, exclusive of land, to establish the plantation. If the
area is fenced, there is an additional cost of around $500 per
mile of fence constructed.
Cattle grazing of pine forests also may be beneficial to
timber production. Perhaps the most important benefit is the
reduction of fire hazard by keeping the undergrowth of grass
and weeds from accumulating. Several rules should be followed, however, if this combination of livestock and forestry
is to be profitable. The more important include: no grazing
with sheep until trees are at least 4 feet high, no grazing with
any livestock during winter and early spring months, no
grazing with hogs on young stands of longleaf or slash pine,
and no grazing with goats at any time.
Management and maintenance costs also vary, but if all of
the labor is hired, the Louisiana study indicates the following
annual costs per acre, based on 1950 wage rates: taxes, 20
cents; fire protection, 6 cents; management, 10 cents; evaluating and marking the trees to be cut, 15 cents; and fence
maintenance, 4 cents. This total of 55 cents per acre per year
can be reduced considerably if the owner performs most of
the functions himself. Even the tax cost is much less when the
homestead exemption, which applies to most farms, can
be used.
Problems
42
42
37
32
27
18
For manoged slosh pine plontotions.
SOURCE: United Stotes Forest Service.
1
vary considerably depending on location, species of trees
grown, demand for forest products, and other factors. However, a study in Louisiana by the United States Forest Service shows some of the costs and probable returns on a plantation of slash pine. Results of the study are fairly typical for
a large area in the eastern section of the Southwest.
No sales of forest products from the plantation should be
anticipated before the fifteenth year after planting. In some
instances, unusually favorable growing conditions will give
some pulpwood earlier, but in most plantations the first cutting of pulpwood is made about the fifteenth year. Additional cuttings are made each 5 years thereafter, with the
first saw logs usually cut when the trees are about 30 years
of age.
Balancing production with the expanding demand for
forest products is a major problem facing forestry today. A
growing population, plus a high level of industrial activity
and construction, has pushed the demand for forest products
higher and higher. Lumber consumption is now at higher
levels than at any time since 1925 and is one· third higher
than in 1945. Pulpwood consumption has increased 2%
times since 1937 and 27 percent since 1945. These increases
have been offset only partially by declines in consumption of
cooperage stock, fuel wood, and a few other uses of timber.
Moreover, because of djITerent requirements for different
uses, a reduction in one ilem does not always permit an in·
crease in another. The problem of boosting the output of
forest products is complicated by the fact that forest production is a slow process, and the investment in land and seedlings will not pay a dividend until the plantation of trecs is
from 15 to 25 years old.
24
MONTHLY BUSINESS REVIEW
The total annual drain of timber resources is an elusive
figure because of the many small operators harvesting tim·
ber products and tbe difficulty of obtaining comparable
measurements of different forest products. In 1945 the United
States Forest Service made a rather comprehensive appraisal
of the Nation's forest resources and estimated that in 1944
the total drain of saw·timber volume amounted to about 54
billion board feet. In that same year, new growth added to
saw timber was estimated at 35 billion board feet. Another
indication that national consumption is exceeding production
is that the estimated total volume of saw timber in our forests
in 1945 was 1.6 trillion board feet, compared with 2.2 tril·
lion in 1922.
It does not follow necessarily that during the next 25 years
the inventory of saw timber will decline at this same rate,
even if current levels of consumption are maintained. The
volume of new growth added each year varies with the age
of the tree, weather conditions, and other factors. Moreover,
millions of seedling trees have been planted during the past
20 years, and these plantations will become a part of the
inventory as they reach saw·timber size.
It is true, however, that there is ample opportunity to in·
crease the productivity of our forests. Millions of acres of
valuable timber land are not being managed properly to give
maximum output. For example, a study in east Texas in 1945
showed that three·fourths of the owners controlling more
than half of the total acreage were not following proper cut·
ting practices to obtain the maximum yield over a period of
years. Moreover, there are an estimated 75,000,000 acres of
potential forest land in the United States that are now idle
or growing up to inferior trees and brush. Only a relatively
small per· acre investment would be required to plant many
of the acres to trees.
What steps can be taken to bring about more efficient
utilization of our forest resources and the potential forest
lands? They include (l) control of fires; (2) cutting of
established stands to allow continuous growth of high·quality
trees; (3) planting productive, adapted species on denuded
land or acres with a thin stand of seedlings; and (4) con·
trolling growth of inferior hardwood species in pine areas.
Fire control. Fire control is essential, for fire can destroy
the entire stand within a few hours. It is impossible to assure
complete fire protection, but certain things can be done which
will reduce matcrially this hazard. If the plantation is in a
fire protection area of the United States or state Forest Servo
ices, this in itself will be a major step toward fire control. In
any event, firebreaks should be provided around the planta·
tion and the necessary tools for fighting fire kept in a can·
venient location ready for immediate use.
In setting up a fire control program, it should be kept in
mind that most forest fires are man·made and can be pre·
vented. Uncontrolled burning of waste areas, camp fires that
are not put out, and many other careless or actually incendi·
ary acts of man pose one of the greatest threats to forests.
Controlled burning carried out under very restricted weather
conditions and with adequate supervision is an accepted
forest management practice in the longleaf pine area, but
wild fires have no place in the building of more productive
woodlands.
Selective cutting. Mature stands of trees should be thinned
to remove the larger trees and to open up the stand so that
younger trees may grow. By harvesting the mature trees and
eliminating the poor·quality trees, the smaller, second·story
undergrowth is given access to more light and moisture and
will grow much more rapidly. AJI timbered areas should be
inspected periodically - at least every 5 years - and trees
that have reached maximum growth or that arc retarding the
development of the stand should be removed. As young
plantations become thickened by growth, cuttings to thin
the stand should be made.
Planting seedlings. Older forest areas are sometimes reo
stocked naturally by seed from the mature lTees. However, in
many logging operations of the past, all trees were removed
from an area and no "seed trees" remained to reseed the area.
Tn such cases, it is advisable to purchase seedlings of the de·
sired species from a nursery and replant the area. Slash and
loblolly pine are recommended species in the eastern area of
the Southwest. Mechanical planters have been developed that
can be attached to a tractor and make the task of setting out
seedlings relatively easy and quick.
Control of Hardwoods. Thc first step in establishing a
profitable stand of trees in a large part of the Southwest is
the control or removal of inferior hardwood species - mostly
oaks. When the original stand of pine was cut and no pro·
vision made for re·establishing pines, the area usually grew
up to hardwoods. Where these species dominate, they must
be removed before a profitable stand of pine can be grown.
Once the pine plantation is well established, it will keep the
hardwoods under control.
An appreciation of the value of trees as a crop by the
majority of landowners in the Southwest would go a long
way toward increasing the efficiency and productivity of our
forest lands. The United States Forest Service, the state
forest associations, and the state Forest Services have made
considerable progress in this direction, and it is encouraging
to see many new plantations of desirable tree species in the
east Texas, eastern Oklahoma, and Louisiana areas. However,
much more can be done.
Timber resources are a valuable and ever·renewable asset
of the Southwest and, if properly managed, can be made even
more productive and profitable. They form the basis for a
substantial and growin g wood·using industry in the South·
west, and if proper attention is given to output from our
forest lands, this industry will continue to grow and prosper.
25
MONTHLY BUSINESS REVIEW
REVIEW OF BUS INESS, AGRICULTURAL , AND
Retail sales at reporting department stores in the Eleventh Federal
Reserve District during the 2 weeks
cndcd January 10 were 9 pcrcent
above the same period in 1952 but
declined sharply the following week. Sales in December were
11 percent above a year earlier and the highest for any
month on record.
Accounts receivable at district department stores at
the end of December were 15 percent higher than a year
earlier; instalment accounts and charge accounts represented
36 percent and 64 percent, respectively, of total accounts
outstanding. Department store stocks at the end of December
were up 5 percent from the same date in 1951.
Conditions in the District during the first half of January
generally were Iavorable for agriculture, although there is
still need for more moisture in many parts of the area. Winter
crops are making only fair progress; development of the
wheat crop in the Texas Panhandle has been retarded hy low
temperatures and lack of moisture. Preparations for planting
of crops in the spring have been making good progress over
most of the District. Farm commodity prices average about
20 percent below a year ago.
Activity in the oil industry in the District in December and
early January was above a year earlier. Crude oil production
in the District during December averaged 224,000 barrels
per day above the December 1951 rate of output. Crude
runs to refinery stills also showed a marked gain. Year-end
crude oil stocks in the District were 7 percent above a year
earlier. Seasonal declines occurred during Decembcr and
early January in district stocks of major refined petroleum
products, except gasoline. Marketed production of natural
gas in the District in the third quarter of 1952 was 8 percent
higher than in the corresponding period of 1951.
Nonfarm employment in the District reached a record high
in late 1952, although seasonal declines occurred in January.
Manufacturing employment, also running at record levels,
is continuing to expand, as seasonal layoffs in some lines are
more than offset by the opening of new manufacturing plants.
Construction activity in the District continues to expand.
The value of construction contracts awarded in December
was up sharply from November and was the highest for any
month on record. Nonresidential awards accounted Ior the
increase over November. Construction contracts awarded in
the District in 1952 were valued at 10 percent more than in
1951, with residential and nonresidential awards gaining 1
percent and 17 percent, respectivcly. All of the gain in 1952
came in the fourth quarter.
Between December 17, 1952, and January 21, 1953,
commercial, industrial, and agricultural loans at weekly
reporting member banks in the District rose somewhat less
than 1 percent. During the same period, investments of these
FI N ANC IAL
CONDITIO NS
banks declined about 2 percent. Deposits rose 1.7 percent,
with about two· thirds of the increase occurring in demand
deposits of individuals, partnerships, and corporations. Time
deposits also rose. During December 1952, gross demand
deposits of all member banks in the District averaged about
1 percent above November and 5 percent over December
1951; time deposits showed a year· to-year gain of 11 pcrcent.
Debits to deposit accounts reported by banks in the larger
cities of the District in December were 9 percent above a
year earlier.
Total retail sales at reporting
department stores in the Eleventh
District during the 2 weeks ended
January 10 were approximately 9
percent ahead of the comparable
period in 1952. During the following week, however, sales
dropped off sharply, largely as a result of cold weather over
the District, and the year·to·year gain for the 3 weeks ended
Jnnuary 17 was reduced to 4 percent.
The month of December, with its ll-percent gain over
December 1951, established a new record for sales at
department stores in the District for a single month. Finol
figures for 1952 show sales during the year 6 percent above
the previous record in 1951; department store sales in the
Nation during 1952 are estimated at 1 percent above the
previous year.
In this District, sales during the first quarter of 1952
lagged 4 percent behind 1951. The upturn occurred in April,
with the exceptionally heavy Easter trade, and was followed
by a sharp rise in May, due in part to the suspension of credit
controls on May 7.
RETAil TRADE STATISTICS
(Percenlage chong e)
NET SALES
STOCKSI
Dec. 1952 from
line of trade
by area
Dec.
1951
Nov.
1952
Dallas...... . .... ... .. .. ......
EIPoso........... . . . .........
Fort Worth... . .... . ... .. .... ..
Houdon... . . . . . . . . . . . . . . . . . . . .
11
22
12
15
7
14
61
62
61
57
73
66
San Antonio. ..................
11
S4
Shreveport, La.. . . . . . . . . . . . . . . . .
14
.4
- ,
56
56
8
36
..
17
43
46
25
68
Shreveport, La.. • • . . . • . . . • . • . . . .
-3
.4
5
13
53
.48
Wichita Falls.... . . . . . . . . . . . . . . .
22
1.4
34
26
40
38
DEPARTMENT STORES
Total Beventh District...... . .....
Corpus Christi . ............... .•
Waco................. . .... . .
Other cities . . . . . . . . .. . . . . . . . . . .
FURNITURE STORES
Total Beventlt District............
Austin. . . . . . . . . . . . . . . . . . . . . . . .
Dallas........................
Houston.......................
Port Artltur....................
San Antonio. . . . . . . . . . . . . . . . . . .
48
HOUSEHOLD APPLIANCE STORES
Total Eleventh District. . . . .. . . . .. .
Dallas........................
1 Stocks at end of month.
I Indicates change of leu than one-half of 1 percent.
Dec. 1952 from
12mo.1952
compo with
12 mo. 1951
6
23
•9
3
10
6
10
12
- 1
Dec.
1951
Nov.
1952
5
-18
-2'
-18
-1'
-21
-17
-15
-26
-20
-16
29
2
8
10
4
8
8
2
,
-.
-7
_6
8
-18
-3
-9
-13
_7
5
MONTHLY BUSINESS REVIEW
26
The stimulative effect of the removal of credit restrictions
was observed in the immediate increase in the volume of
instalment buying, which accounted for the greater portion of
the year-to-year net gain in total sales from May through the
summer months. From late August through the remainder
of the year, in the Iace of heavy seasonal demand for
wearing apparel and other regular fall and winter goods,
instalment buying diminished in dollar volume and in relative importance to total sales.
in retail sales in April, departmcnt stores increased thcir
stocks on order, and a month-to-month build-up of inventories
began during July. By the end of October, stocks on hand
had risen 3 percent above a year earlier; by the end of the
year they were 5 percent greater than at the end of 1951,
reflecting about the same proportionate increase as occurred
in sales. The ratio of stocks at thc beginning of December
1952 to sales during the month was 1.69, or not significantly
different from the corresponding month in 1951.
Despite spectacular percentage gains during the year in
the sales of some of the major appliances and other durable
items, wearing apparel and other soft goods lines accounted
for 83 percent of total annual sales and 77 percent of the net
gain over 1951.
Furniture store trade in this District showed a moderate
decline in the first month of 1952 but recovered in
February, and monthly sales for the remainder of the year
held substantially above year-carlier figures. The year 1952
showcd a gain of 11 percent. Inventories, despite the higher
sales volume, were kept at a lower level throughout the year
and on December 31 were 7 percent smaller than at the cnd
of 1951. The higher level of sales and longer credit terms
combined to raise end-of-year accounts receivable 24 percent
above the previous year.
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
{1947.49
=
1001
ADJUSTEDI
UNADJUSTED
D.c, Nov. Oct. De c.
1952 1952 1952 1951
Area
SALES-Daily average
EI.venth District . ...........
Dallas ...............•... .
Dec.
Dec.
Oct.
1952 1952 1952 1951
USr
138r
162
134
133
149
226
130
127
148
120p 146r
141
114r
215
206
Houston •• . • •••••••.••.••. • 248
Nov.
202r
192r
129
145
128
124
150
122
llSr
135
131p 130
129
124 r
119r
STOCKS-End of month
Eleventh District .. ..........
1 Adjusted for seasonol ... ariolion.
r-Revised.
p-Preliminary,
Accounts receivable at the end of December were 15
percent greater than a year earlier. Instalment accounts
represented 36 percent of total outstandings - the remainder,
64 percent, was on the basis of regular charge accounts.
The collection period on instalment accounts in December
averaged about 14l1z months, compared with 10 months
during December 1951. Charge accounts showed an average
collection period of about 63 days, compared with 65 days
a year earlier.
Inventories during 1952 reflected a uniformly conservative
buying policy. During the first quarter of the year monthly
inventories were lower than in 1951. Following the upturn
The aggregate value of the principal crops produced iu 1952 in the
five states lying wholly or partly in
this District is estimated to be slightly higher than in 1951. The total
acrcage of harvested crops is virtually the same, but larger
crops of rice, sweet potatoes, and wheat, plus slightly higher
average prices for corn, sorghums, rice, and a few minor
crops, were sufficient to push the total value above a year
ago. In Texas the total value of the principal crops produced
in 1952, estimated by the Bureau of Agricultural Economics
at $1,321,000,000, is 1 percent less than a year ago, largely
because of a 3-percent decline in total harvested acreage.
Smaller crops of cotton, sorghum grain, and peanuts more
than offset increases in small grains and rice.
Conditions during the first half of January were favorable
for general field work in most of the District. In eastern
sections, warm, open weather dried fields and permitted
farmers to begin seedbed preparation for spring-planted
crops. Moisture conditions in the District are generally
adequate for immcruate needs, although more than the usual
WHOL~SALE TRADE STATISTICS
CROP PRODUCTION
Eleventh Federal Reserve Distric t
Texas and Five Southwestern Slates
(Perc.nIClgll change)
(In thousands of bushels)
NET SALESp
Texos
STOCKSl p
December 1952 from
December 1952 from
12mo.1952
December
line of trode
Dry goods..••••.•.........
Grocery (full-line wholesalers
not sponsoring groups) •••• .
Hardware .....••.•......• .
Industrial supplies • . ..• . •• ...
Machinery equipment and sup'
plies except electrical .....
Metals ••. ... ...... ........
Tobacco products .... .......
Wines and liquors ...... ....
Wiring supplies, construction
materials distributors . .. ...
Noyember compo with
1951
1952
7
-22
35
17
-6
-21
-15
12mo.1951
-,
-2
3
Crop
December
November
1951
1952
-15
-16
5
-3
-3
-9
-6
-11
-,
8
20
4
-2
-12
-5
14
-10
-30
30
16
5
9
37
10
11
1 Stocks ot end of month.
p-Pr.1iminary.
I - Indicates change of less than one-half of 1 pen:ent.
SOURCE: United States Bureau of the Census.
5
(
-2
-1
5
Colton! ..... . . . .
Corn . .... .. ... .
Wheot. .... . . . •
Dais ......... ..
Rices ...... .... .
Sorghum groin . ..
Averoge
1941·50
3,020
56,861
60,347
28,263
8,668
P e anuts ~ ••••••••
79,096
317,066
Flalueed ....... .
Pecans ......... .
Irish potatoes . . ..
Sweet polo toes . . .
Hay, 011$. .. .....
737
26,418
4.402
4,855
1,550
195 1
4,074
42,143
17,946
8,145
13,514
72,250
118,300
Five southwestem state,l
1952
4,700
2,204
1,365
3,750
41,292
34,626
20,9 10
13,662
48,236
80,500
1,062
34,400
2,040
1,215
1,456
1,512
75
Average
1941·50
4,406
101,839
136,455
52,904
18,916
94,930
434,851
1.357
52.906
9,365
14,850
4,729
Arizona, louisiana, New Mexico, Oklahoma, and Texas.
I In thousands of ba lel.
I In thousands of bags, 100 pounds each.
4 In thousands of pounds.
$ In thousands of tons.
SOURCE: United States Department of Agriculture.
I
1951
6,372
81,042
58,206
15,00 4
25,448
93,536
239,695
233
40,450
5,005
8,890
4,648
1952
6,095
65,587
1.4 2,966
32,198
26,304
55,057
132,650
1,150
46,950
4, 800
9,235
4,605
•
27
MONTHLY BUSINESS REVIEW
amount of winter snow and rains will be required to provide
ample moisture reserves for the growing season. Irrigation
water continues short in the Lower Rio Grande Valley.
LIVESTOCK RECEIPTS
(Number)
SAN ANTONIO MARKET
FORT WORTH MARKET
On the Texas High Plains, late·sown wheat was coming
up to a stand by mid·January, but growth was brought to a
standstill by sharply lower temperatures the week of January
15. Most acreage that is up to a stand in the Low Rolling
Plains is developing a good root system, and some additional
acreage was planted in January. Small grains in north Texas
and northern Louisiana arc making satisfactory growth and
supplying some grazing.
Preparation for early spring vegetable crops is under way
in many sections of the District, with the east Texas tomato
growers starting their plants in hotbeds and farmers in parts
of north and northeast Texas preparing seedbeds for the early
onion crop. Planting of can taloupes and watermelons in the
Lower Rio Grande Valley was under wa)' by mid-January,
and considerable acreage was prepared for sweet corn.
Growth of winter vegetables was retarded by the sharply
lower temperatures around the middle of the month.
~
Indicated production of commercial winter vegetables in
Texas is 30 percent above a year ago and 11 percent higher
than the 1949-51 average. This estimate covers winter
production of beets, cabbage, cauliflower, lettuce, broccoli,
onions, and spinach. Total acreage of these crops is about
19 percent above a year ago, and generally favorable yields
are forecast.
Rangc and pasture conditions in the District improved
during the past 2 month in most central and castern sections,
where some green feed is availablc from small grains, winter
legumes, and grass. However, most pastures are still short,
as cool nights retarded growth. In western areas there is very
little range feed, and supplemental feeding continues on a
wide scale.
The January 1 report of range and pasture conditions
prepared by the United States Department of Agriculture
indicates a sharp improvement during the month of
December in the condition of ranges in Oklahoma, a moderate
improvement in Texas and Arizona, and a slight decline in
ew Mexico. Compared with a year ago, Oklahoma ranges
are in much better condition, while those in other western
parts of the District are generally unchanged. Prospects
for early spring grazing are somewhat improved, although
additional rains will be needed to assure growth of new feed.
December
1951
1952
1952
Cottle ••••••••••
Ca lves ••••••••••
Hogs •• • .•••••••
59,335
22,734
83,215
Sheep • •••••••••
45,677
32,411
20,553
93,073
29,631
67.588
25,217
57,875
49,535
19.276
'1,060
3,132
110.392
I
December
De<:ember
1952
Clau
1951
17,926
15,552
6,632
19,556
Nay.mba,
1952
21,506
15,925
116,022
Includes goats.
Prices received by farmers for most commodities declined
further during December, and the Bureau of Agricultural
Economics reported the over-all index of prices received by
Texas farmers at 290 percent of the 1910-14 base, reflecting
a decline of 4 percent from the previous month. During
January, reports from farm commodity markets indicated
relatively small price changes, although most grains tended
to show considerable weakness. Fed-slaughter cattle prices
also declined, while prices of stocker cows and steers
strengthened.
Farm commodity prices in the District averaged about 20
percent below the level of a year ago. Livestock have shown
the sharpest declines, but wheat, corn, oats, flaxseed, cotton,
FARM COMMODITY PRICES
Top Prices Paid in local Southwest Markets
Comparable Comparable
Week ended
week
week
lad year
Unit Jon. 22, 1953 last month
Commodity and market
COTTON, Middling 15/16·inch, Dallas •••••
WHEAT. No.1 hard, Fort Worth ••••••••••
OATS, No.2 white, Fort Worth •••.•••••••
CORN, No.2 yellow, Fort Worth ••• • .••••
SORGHUMS, No.2 yellow milo. Fort Worth.
HOGS, Choice, Fort Worth •• .•• ••••••.• .
SLAUGHTER STEERS, Choice, Fort Worth •••
SLAUGHTER CALVES, Choice, Fort Worth •••
STOCKER STEERS, Choice. fort Worth .••••
SLAUGH TER LAMBS. Choice, Fort Worth •• •
HENS, 3·4 pounds, Fort Worth •.•..••••..
FRYERS, Commercial, Fort Worth ••••..•..•
BROILERS, south Texas••• •••••• ••••• • • ••
TURKEYS, No.1 hens, fort Worth •••..•••.
lb.
b,.
b,.
b,.
cwl.
",t.
"'t.
",t.
cwl.
",t.
lb.
lb.
lb.
lb .
$32.15
2.68~
1.09*
1.SSy-'
3.20
20.00
25.50
25.00
23.50
22.50
.22
.27
.27
.35
$32.20
2.70v..
1.131f.t
1.89
3.43
17.50
28.00
25.00
21.00
20.00
.24
.32
.32
.37
$41.80
2.77Y..
1.22
2.21
3.16
18.50
34.00
33.00
32.00
28.00
.24
.32
v..
.3 5
FARM PRICES
P,rc.nt
Perc
500'"
400
Cattle are wintering in fairly good condition in district
states as a result of heav y supplemental feeding and relatively
mild and open wealher, at least to mid-January. The condition
of caule on January 1 as reported by the Department of
Agriculture shows improvement over December 1 and over
a year earlier. Sheep are wintering in good condition except
in west Texas, where range feed has been short for many
months and most breeding flocks are in poor condition.
Prospects fOT feed in the eastern part of the Edwards Plateau
have improved, with some new feed now becoming available.
However, most of the major sheep-producing aTcas in the
State are continuing heavy supplemental feeding.
December November
500
I
I
~
400
300
300 f-........................ j" ..........................
• "'Pritts paid by
formtrs-U~lt.d Statu
200
200
-
100
I DO
o
o
1951
1952
1953
28
MONTHLY BUSINESS REVIEW
cottonseed, and citrus fruit also have declined substantially.
The average price received by Texas farmers for cotton on
December 15, 1952, was 29 cents per pound, compared with
38.4 cents in December 1951. During the same period, beef
cattle declined from an average of $23.80 per hundredweight
to $15.50.
During the 5 weeks ended January 21, investments declined
829,378,000, or 2.0 percent, to a totnl of 81,453,105,000.
Sales or redemptions of Treasury bills accounted for slightly
more than this over· all reduction. Increases in holdings
of Trcasury certificates of indebtedness and bonds were
approximately offset by reductions in Treasury notes and
municipal securities.
Between December 17, 1952, and
January 21, 1953, total resources,
loans, cash assets, and deposits of
the weekly reporting member banks
in the District rose. Investments of
these banks declined. In most cases, these changes in major
categories of assets and liabilities during the 5 wecks contrast
with those reported during the comparable period ended
January 23, 1952.
Deposits at these banks rose $72,383,000, OT 1.7 percent,
during the 5 weeks, as compared with a r ed uction of
$52,663,000, or 1.3 perccnt, during the comparable period
ended January 23, 1952. Approximately two·thirds of
the increase - $47,989,000 - was reflected in an expansion
of demand deposits of individuals, partnerships, and
corporations. Increases in deposits of banks and of states and
local subdivisions were offset by a contraction of deposits of
the United States Government. Time deposits rose $7,641,000,
or 1.5 percent, with deposits of individuals and businesses
accounting for slightly more than the increase. These deposit
changes during the 5 weeks reRect, in part, the effects of a
return flow of currency from circulation and net Treasury
expenditures in the District.
Commercial, in dustrial, and agricultural loans rose
$6,700,000, or somewhat less than 1 percent. In most weeks,
commodity dealers, wholesale and retail trade establishments,
construction firms, and transportati on companies liquidated
substantial amounts of thci r outstanding bank borrowings.
These reductions were more than offset, however, hy
increases in loans to manufacturers of petroleum and
chemical products, sales finance companics, and a miscellan·
eous group of other borrowers.
GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
Eleventh Federal Reserve Disfrict
(Averages of daily filjJure s. In thou sa nds of dollars)
COMBINED TOTAL
Other changes in loans included an increase of $20,912,000
in loans to banks and a r eduction of $1,543,000 in loans for
financing security transactions. "All other" loans, a category
which includes consumcr·type loans, rose $9,579,000,
or somewhat less than 3 percent. Real estate loans were
unchanged. On January 21, loans of these banks amounted
to SI,789,478,000, reflecting an increase of 5234,069,000,
or 15 percent, over the comparable total for 1952.
CO NDITION STATISTICS OF WEEKLY REPORTING
MEMBER BANKS IN LEADING CITIES
Eleventh Federal Reserve District
(In thousands of doll ars)
January 21,
Item
1953
Total loans (gross) and Investments ....... . ... $3.242.583
Totolloans-Net l .. .... ... ... ......... . .
1, 770,649
Total loans-Gross . . ....... . ............
1,789,478
Comme rcial,lndustrio l, and agriculturolloons 1,1 88,331
loons to broken and dealen in se<urilies . .
10,297
Other loans for purchasing o r carrying
securities . ... ......... .. ...........
64,948
Real estate loons . ...... .. ......... . ..
128,127
Loans to banks ...... . .. .. ......... .. .
32,535
All other loons .. ... ... . . ........... . .
365,240
Tota l Investmenh . .................. . .. .
1,453,105
U. S. Treasury bills . .. .. .. .. ...........
209,688
U. S. Treasury cer'i flcates of indebtedness.
153,029
U. S. Treasury notes •.. .... . . ....... . ..
2 11 ,163
U. S. Government bonds (incl. guaranteed
obligations) ................... . . .. .
704,678
Othe r securities .... . ... .. .......... . ..
174,547
Reserves with Federal Reserve Bank .. ........
577,962
Balances with domestic banks ..... .. ........
455,876
2,528,817
Demand deposits-adiusted' ............ ....
Time deposits except Government ............
490,262
United States Government d eposits .. .. .......
84,570
Interbank demand deposits .................
938,643
Borrowings from Federal Reserve Bank .... . ...
8,000
January
23,
1952
52,927.075
December 17,
1952
1,089,497
8.914
$ 3,236,255
1,735,253
1,753,772
1,181 ,631
10,670
53.598
114,927
132
288.341
1.371.666
241.232
162.833
18 1.272
66,118
128,069
11,623
355,66 I
1,482,483
240,113
148,918
214,636
617,786
168,543
700,974
177,842
613,259
448.780
2,537,728
482,621
110,136
927, 102
14,800
1,539,131
1,555,0409
574,110
488,638
2,395,837
457,196
51,388
879,501
3.000
After deduction s for reserves and unallocated charge· off,.
Includ es all dema nd de posits other tMn interbank and United Sta les Gove rnment, less
cosh items reported os on hond or in process of collection.
I
Z
Dale
Gross
demand
Time
RESERVE CITY BANKS
Gron
demand
Time
COUNTRY BANKS
Gross
demand
Time
Dot.mber 1950 .. $6,256,2 10 $646,999 53.044,765 $397,983 $3,2 11,4455249,016
December 1951 .. 6,753,139 706,327 3,170,047 390,143 3,583,092 316,184
August 1952 ..... 6,546,078 758,238 3,123,6 16 414,837 3.422,462 343,401
September 1952 .
6,692,788 767,553 3,190,957 421,871
3,501,831 345,682
Oclober 1952 ... 6,828,512 770,099 3,262,180 420,233 3,566,332 349,866
Novemb.r 1952.. 7,025,207 780,156
3,338,376 42 1,427 3,686,831 358,729
December 1952.. 7,090,304 784,739
3,380,098 422,356 3,710,206 362,383
Gross dcmand deposits of all member banks in the District
averaged 57,090,304,000 during December 1952, reflecting
an increase of slightly less than 1 percent during the month
and an increase of 5 percent over December 1951. The
reserve city banks accounted for 64 percent of the increase
in December and for 62 pcrccnt of the expansion during the
year. Time deposits averaged $784,,739,00 in December, a
level which is slightly higher than that for November but 11
percent above December 1951. Country banks accounted for
approximately 59 percent of the expansion in time deposits
during 1952.
Debits to deposit accounts reported by banks in 24 cities
of the District rose 17 percent during December 1952, as
compared with the total for November 1952. The increased
volume of spending which these figures reflect was general
ovcr the District and represents in part the influence of
seasonal factors. The volume of charges to deposit accounts
in December was 9 perccnt above the total reported for
December 1951. The annual rate of turnover of deposits
rosc from 13.8 in November to 16.0 in December. The latter
rate is identical with the rate of turnover for December 1951.
The annual volunle of debits duri ng 1952 reported by
banks in these 24 centers of the Di strict was 9 percent above
the total for 1951, reflecting a somewhat higher level of
4
MONTHLY BUSINESS REVIEW
B.... NK DEBITS, END -O F-MONTH DEPOSITS
.... ND .... NNU,t..L R....TE OF TURNOVER OF DEPOSITS
(Amounts In thoulQnds of dellan)
DEBITS'
DEPOSITS1
Percentage
change from
City
December
Dec.
1952
1951
Nov.
1952
109,287
21
3
53,695
213,583
5
2
8
18
29,010
23
11
Annual rate of turnover
Dec.31,
Nov.
Dec.
1952
Dec.
1951
117,660
11.3
10.6
11.2
57,545
208,453
11.8
12.2
11.5
12.4
11.8
10.7
32,2 2 1
10.9
9.6
10.2
1952
1952
ARIZONA
Tucson ••..••.•••.• . •
LOUISIANA
Monroe ............ .
Shreveport . •••..•••.
$
HEW MEXICO
Roswell . • •.••..•.•• •
TEXAS
Abilene ............ .
Amorillo ••• ••.•• .. ..
Austin . • . . . . . . . . . . . .
Beaumont ••••••• .. . •
6
i
8
8
- I
152,799
17,349
1.938,584
246,"83
586,293
83,897
1.867.786
26,"31
152,61.4
"9,771
38,555
405,126
20,196
59,185
83,802
96,125
6
5
13
2
12
21
9
-1
10
20
-2
6
-8
4
1
-11
10
10
8
7
36
30
20
16
7
16
25
-8
10
6
15
3
19
21
9
Tolal-2" cities ........ $6,711,045
9
17
Corpus Christi ........
Corsicana . .... .. ....
Dallas ....... . ..... .
EI Paso .• ..•.. . . ...•
Fort Worth ..........
Galveston ..... . ... . .
Houston ....... . .. . . .
laredo .........• .. .
Lubbock .. . . ... . , . . .
Pori Arthur ..........
San Angelo .. .... , ...
Son Antonio . .... , . ..
Texarkano· ......... .
Tyler .............. .
Woco ............. .
Wichita Falls, ........
•
58,891
145,032
135,666
140,885
59,080
124,641
14.2
11.9
15.2
11.5
13 .3
128,981
106,655
121,166
23,723
1,148,407
13.1
16.1
15.1
13.3
16.3
15.7
13.2
9.0
43 ,463
103,509
1,246,896
26,561
126,218
45,101
54,636
414,188
28,769
60,647
98,160
113,333
17~520
17.4
16.6
9.7
18.2
11.9
15.2
13.3
8.6
11.9
8.5
12.1
10.3
10.3
9.0
20.0
16.9
17.0
10.2
17.8
11.4
17.3
12.7
9.1
12.1
9.7
11.6
9.8
9.8
15.4
14.5
9.2
16.0
9.6
18 .0
12.4
8.3
10.7
8.4
10.6
8.6
9.7
$5,055,533
16.0
16.0
13.8
12.1
19.3
15.0
14.4
6.8
15.2
1 Debits 10 deposit accounts except Interbank accounts.
I Demand and time deposits, Including certified and offlcers' check, outstanding but excluding deposits to the credit of bonks.
J These Agures include only one bonk in Texarkana. Texas. Total debits for all bonks in
Texorkono, Texcs·Arkansos, Including two bonks located in the Eighth Dbtrict ,amounted to
$39,308,000 for the month of December 1952.
I Indicates chonge of teu thon one·holf of I percent.
general spending by individuals, businesses, and others. The
annual rate of turnover of deposits, or the annual rate of use
of deposit accounts, declined slightly - from 14.8 in 1951
to 14.7 in 1952.
Between December 15, 1952, and January 15, 1953, the
principal changes in the condition of the Federal Reserve
Bank of Dallas included an increase of $50,562,000 in total
earning assets, which was more than accounted for by the
expansion of holdings of Government securities, and a
reduction of $52,866,000 in total gold certificate reserves,
Member bank reserve deposits rose $26,627,000, while
discounts for member banks declined $14,970,000. On
January 15, Federal Reserve notes of tbis bank in actual
circulation amounted to 734,834,000, reflecting a decrease
of 24,265,000 from December 15, 1952, but an increase
of $54,794,000 over January 15, 1952.
CONDITION OF THE FEDER .... l RESERVE MNK OF DMl .... S
(In thoulands of dollars)
Item
•
,
Jon. 15,
Jon. 15,
1953
1952
Dec. 15,
1952
$ 631,099
3,000
16
$ 769,540
16,000
Total gold certificate reserves .........•..... $ 716,674
Discounts for member banks . ........ ... ... .
1,030
Industria l advances .... ........... , ....... .
945
Foreign loans an gold . . .... ... ...... .. ... .
U. S. Government securiti es . .... . .......... .
1,160,352
Total earning asseh ..... .. ............... .
1.162.327
Member bank reserve deposits . ............ .
1,087,501
Federal Reserve notes in actual circulation .... .
73',834
o
o
1.Q97,752
1,100,768
1,060,'73
680,0.0
o
1,691
1,094,074
1,111,765
1,060,874
759,099
29
Life insurance company investments in four southwestern
states - Louisiana, Oklahoma, Texas, and Arkansas - rose
rather sharply during 1951, according to data released on
January 16 by the Life Insurance Association of America.
Investments of a group of life companies which accounts for
88 percent of the assets of all life insurance companies in
the country rose $614,355,000, or 11.6 percent, to a total of
$5,931,912,000 on January 1, 1952. The net flow of capital
funds to the Southwest wbich these figures reflect was greater
than that to any other region of the country, with the
exception of the Pacific Coast states. These latter states
showed an increase of $698,099,000, or 12.6 percent. During
the decade ended January 1, 1952, investments of these
companies in the Southwest increased 221 percent, a greater
relative growth than that shown by any other region of the
country. On January 1, 1952, investments in Arkansas,
Louisiana, Oklahoma, and Texas accounted for 11.1 percent
of the total investments of these companies in the United
States. This proportion compares with 6,7 percent on
January 1, 1942.
The Board of Governors of the Federal Reserve System
announced on January 15 approval of an increase in the
discount rate of eight of the twelve Federal Reserve Banks
- New York, Philadelphia, Cleveland, Atlanta, Chicago, St,
Louis, Minneapolis, and Kansas City - from 1% percent
to 2 percent, effective January 16. The Board approved a
similar increase in the discount rate of three of the four
remaining Reserve banks, effective January 20 for the
Federal Reserve Bank of Boston and the Federal Reserve
Bank of San Francisco and January 23 for the Federal
Reserve Bank of Dallas. The discount rate of these banks
had been at a level of 1% percent since August 1950, when
an increase from a level of 1% percent was announced_
Budget expenditures of the United States Government
during the first half of fiscal 1953 -from July 1, 1952, to
December 31, 1952 - amounted to 836,496,977,000, as
compared with expenditures of $31,276,342,000 in the first
half of fiscal 1952. Net budget receipts (after deduction of
appropriation to Federal Old-Age and Survivors Insurance
Trust Fund and of refunds of receipts) during the first half
of the current fiscal year amounted to $27,203,928,000, or
$9,293,049,000 less than expenditures_ This deficit in the
budget accounts, for the July-December half of the fiscal year,
compares with an excess of expenditures of $7,467,242,000
during the comparable 6 months of fiscal 1952.
The President transmitted the budget of the United States
Government, for the fiscal year ending June 30, 1954,
to Congress on January 9. Budget expenditures for the
Government's programs, as recommended by the President,
are estimated at $78,587,000,000. Receipts are estimated at
$68,665,000,000_ On the basis of these spending and receipts
totals, the budget deficit for the fiscal year is estimated at
$9,922,000,000,
Expenditures by the military services - estimated at
$46,296,000,000 - constitute the largest proposed item of
spending in the budget and account for 59 percent of total
estimated expenditures. Outlays for international security
MONTHLY BUSINESS REVIEW
30
and foreign relations - $7,861,000,000 - and for interest
on the public debt - $6,420,000,000 - account for an
additional 18 percent of total proposed spending. On the
receipts side, direct taxes (on the basis of present tax laws)
on individuals and corporations are expected to supply
$34,334,000,000 and $23,300,000,000, respectively. The yield
from excise taxes is estimated at $9,869,000,000. On the basis
of the budget totals for fiscal 1954 and estimated receipts
and expenditures for the remainder of the cnrrent fiscal
year, the pnblic debt is expected to rise to $273,800,000,000
by June 30, 1954.
NEW MEMBER BANKS
The First Na#onal Bank of Strawn and the Strawn
National Bank, Strawn, Texas, merged on December
31, 1952, under the name of the First Strawn National Bank, Strawn, Texas. The merged institution
has capital stocl, of $75,000; surplus of $50,000; and
undivided profits of $15,000. The officers are 1. I.
Encke, President; 1. A. Ferguson, Vice President;
Mac D. King, Vice President and Cashier; Ruth Messimer, Assistant Cashier; and Maggie Cato. Assistant
Cashier. The bank is located in the territory served by
the Head Office of the Federal Reserve Bank of Dallas.
The American National Bank of Houston, Houston,
Texas, a newly organized bank located in the territory
served by the Houston Branch of the Federal Reserve
Bank of Dallas, opened for bztsiness lanztary 24, 1953.
The new bank has capital of $200,000, surplus of
$100,000, and ztndivided profits of $50,000. The officers are: Damon Wells, President; Marlin E. Sandlin,
Vice President; E. 1. Rhodes, Vice President; Harold
Harty, Vice President; and C. A. Dahlberg, Cashier.
No significant change occurred in
the national snpply and demand picture for petroleum during December
and the first part of January. Wbile
the demand for major refined products was moderately above a year ago, refining activity, crude
oil production, and imports also were higher. The seasonal
decline in stocks of heating oils was a little less than a year
earlier. Stocks of the major refined products and crude oil
at the beginning of January continued in ample supply.
Daily average crude oil production in the Eleventh Federal
Reserve District during the first half of January was down
about 75,000 barrels from the December rate of 3,292,000
barrels. This decline was largely the result of the reduction
in the Texas January allowables. Not much change in
production is anticipatcd for February, in view of the small
chan ge annonnced in the Texas allowables for that month.
Daily average production in December was 78,000 barrels
less than in November but 224,000 barrels higher than in
December 1951. Daily average production in the Nation in
December, at 6,558,000 barrels, was 75,000 barrels less
than in November but 344,000 barrels greater than a year
earlier.
CRUDE OIL PRODUCTION
(Barrels]
December 1952
Area
Totol
production
Doily Qvg.
production
Increese or decrease in doily
overage production from
Dec, 1951
NoY.1952
ELEVENTH DISTRICT
Texo5 R. R. Com. Districts
1
Soulh Central. . . . . . . . .
, ,203,400
2
Middle Gulf. . . . . . . . . .
5,404,400
3
Upper Gulf.. . . . . . . . .. 15,792,600
lower Gulf. . . . . . . . . . .
8,462,800
East Cenlrol . . . . . . . . . .
1,706,800
6 Northeast.. .. ........ 12,480,600
East Texas. . ... . ...
8,215,050
Other flelds. . . . . . . . 4,265,550
7b North Central. . . . . . . . .
3,657,850
7c West Central... ...... 5,440,150
a West ........ . ... .... 30,663,400
9 North.... . ..... . .....
5,889,400
10 Panhandle........ . . . . 2,501,650
Total Teltas .... ... .. 93,203,050
New Mellica . . . . ....... . ...
5,333,300
North louisiana.... . . . . . . . . .
3,518,000
Totol Ele venth District ...... .. 102,054,350
OUTSIDE ElEVENTH DISTRICT ... 101,234,950
UNITED STATES ... .......... . 203,289,300
.4
5
38,819
174,335
509,439
272,994
55,058
402,600
265,002
137,598
11 7,995
175,489
989,142
189,981
80,698
3,006,550
172,042
11 3,484
3,292,076
3,265,643
6,557,719
5,938
8,056
23,526
16,736
2,214
7,502
-3,775
11,277
33,677
52,397
32,358
31,905
-2,841
211,468
24,936
-12,484
223,920
120,414
344,334
-438
-4,863
-9,884
-7,562
766
8,183
8,277
-94
-433
-8,483
-57,705
-1,689
-60
-82,168
2,580
1,097
-78.491
3,477
- 75,014
SOURCE: Estimoted from American Petroleum Institute weekly reports.
Refinery activity in both the District and the Nation dipped
during the first half of December but recovered strongly in
the latter part of the month. Crude runs to refinery stills in
Lhe Nation reached a record high of 7,221,000 barrels daily
in the week ended January 3. For the month of December
as a whole, daily average crude runs to refinery stills in the
District amounted to 2,068,000 barrels, reflecting a decline
of 59,000 barrels from November but a gain of 124,000
barrels over December 1951. Refinery runs in the Nation
in December averaged 6,928,000 barrels per day, also ill
declining from November but higher than a year earlier.
~
Crude oil stocks in the District rose 4,500,000 barrels
during December and at the end of the month stood at
144,000,000 barrels, or 7 percent higher than in the
corresponding week of 1951. While crude stocks in the
Nation as a whole showed a smaller rise during the month,
month-end stocks of 268,300,000 barrels were over 4 percent
above a year earlier. Seasonal declines were evident during
December and the first part of January in district and
national stocks of distillaLe and residual {uel oil and kerosene,
while stocks of gasoline showed a typical increase.
The United States demand for all oils for domestic use and
export in 1953 is expected to average 8,000,000 barrels per
day, according to a forecast released by the Bureau of
Mines_ Such a demand would represent an increase of
3.8 percent over that of 1952, as compared wiLh eSLimated
year-ta-year increases of 3.4 percent in 1952, 9 percent in
1951, and 11 percent in 1950. Despite the 3_8-percent increase
forecast in the total demand Jor the current year, the demand
for domestic crude oil is estimated at only about 1 percent
higher than in 1952_ Moreover, the forecast demand :for
domestic crude of 6,329,000 barrels per day is substantially
less than the current production level. The r elatively smaller
increase in the demand for domestic crude as compared with
that for the total demand results from the increases expected
in oil imports and in domesLic production or light oils from
natural gas. The Bureau of Mines' forecast shows increases
in total imports of oil at 9 percent and in the production
of light oils from natural gas at 5 percent. No change is
anticipated in the level of stocks.
4
The daily average volume of imports forecast for 1953
~ is only a little less than the daily average rate of imports
~
,
31
MONTHLY BUSINESS REVIEW
during the fourth quarter of 1952. Imports in October,
November, and December were at record levels for those
months, averaging more than 1,000,000 barrels per day, or
about 30 percent above the same 3 months in 1951. In the
week ended January 10, import~ reached an all-time high of
1,305,000 barrels daily.
and is estimated unofficially at about 3,830,000 workers, or
near the October level.
Manufacturing employment in the states of the District
also increased from a revised estimate of 726,500 workers
in October to 737,000 in November. It is expected that reports will show a total of 745,000 manufacturing workers
in the five states in December. Even thongh some seasonal
layoffs occurred in January, the total number of manufacturing workers continued to increase as new plants were
placed in operation.
Marketed production of natural gas in the Southwest continued to expand during the third quarter of 1952. Total
marketed production in the four gas producing states lying
wholly or partly within the Eleventh Federal Reserve District - Louisiana, New Mexico, Oklahoma, and Texasamounted to 1,495 billion cubic feet. This figure represents
a slight contraseasonal increase over the previ~us quarter
and is 8 percent higher than in the third quarter of 1951.
New Mexico and Louisiana were the southwestern states
experiencing the largest year-to-year increases, gaining 15
percent each, while Tcxas and Oklahoma reported increases
of 7 percent and 4 percent, respectively. These four states accounted for 80 percent of the Nation'8 marketed production
in the third quarter of 1952.
A recent tabulation by the Texas Employment Commission reveals that it has paid out $7,944,993 in unemployment insurance during 1952, which is 33 percent more
than in 1951. Meanwhile, the unemployment trust fund for
Texas workers increased to $266,126,000. The interest from
this fund, amounting to $5,558,300, accounted for about
70 percent of the money paid out to unemployed workers
during 1952.
MARKETED PRODUCTION OF NATURAL GAS
ARIZONA, L OUISIANA, NEW MEXICO, OKLAHOMA, AND TEXAS
MANUFACTURING
TOTAL.
Thou sands of Persons
Mili l ons 0 f Pons
'"~
800
(In millions of cubic fee l)
Third quarter
NONAGRICULTURAL
WAGE AND SALARY WORKERS
Third quarter
Second quarter
~I r-~(
_ _ _ _A
_r_.a_ _ _ _ _ _ _ _
9~5~2_ _ _ _~1~
95~1_ _ _ _~1952
louisiana....... .. .. .. .......
New Mexico. . . . . . . . . . . . . . . . .
Oklahoma.................. .
Texas. . .. . .. ............. . .
279,800
83,100
134,100
998,100
243,700
72,200
129,200
935,000
254,400
85,600
163,500
970,900
Total.................. .
1,495,100
1,380,100
1,474,400
I
T~;·~!:·~·······!·············r ..
700
SOURCE: United Statel Bureau of Mines.
Utility sales to natural gas customers in the Nation in
1952 were 10 percent higher than in 1951, according to data
released by the American Gas Association. Sales to industrial
customers were almost 12 percent higher. Meanwhile, residential and commercial sales increased about 8 percent and
9 percent, respectively. The relatively mild weather during
the usually cold months in 1952 tended to limit the increases
in sales to residential and commercial users. There were 16
percent more residential customers at the end of 1952 than a
year earlier, and the number of commercial customers was
up 14 percent; there were also about 19 percent more industrial customers.
Estimates by the state employment agencies indicate that the total
number of nonagricultural wage
and salary workers in the five states
lying wholly or partly within the
District rose to 3,843,000 in November, or about 10,000
above the r evised estinlate of 3,833,900 for October. The
~ revision in the October estimate, as well as for earlier months,
, was occasioned by the recent release of Bureau of Census
tabulations of construction workers. It is expected that reports for December will show a r ecord 3,852,000 nonagricultural wage and salary workers employed in the five-state
area. The January total was off seasonally from December
·r···j··· ........ j
YI
..··)·······1 I I
I I I I I I
I I , •..
MANUFACTURING
•••••••••••••••••••••••••••
.t. . ....-_.-.
3.5
·r-···r·_·············
.....
60 0
oJ
3.0
--, --,
SOURC E Slat.
•
A
,m~ l a1m .nt
M
A
SON
o
0
.··· .. · .. 1951 --1952
a" nct"
Announcement has been made of a projected $4,000,000
chemical plant to be constructed near Beaumont, Texas.
The plant will produce chemicals for use as feed suppleNONAGRICULTURAL EMPLOYMENT
Five Southwestern Stales 1
Percent change
Number of persons
Type of employment
November
1952p
Total nonagricultural
wage and salary workers •. 3.843.800
Manufacturing .. •••...•..
737,000
Nonmonufacturing .•.• ...• 3,106,800
Mining ......... .. ..•..
228.300
Construction .•. . •......
286.300
Tronsportation and public
ulililiei •... .. .• •. .• ..
410.600
Trade .. . • . . .••.••.•. .
975.000
Finance .............. .
' ..... 200
Service ....... ....... .
4 .. 1,400
Government ..•....... .
621.000
Nov. 1952 from
November
1951
October
1952
3,705,500
691.600
3,013,900
219.900
286.200
3,833,900
726.500
3,107.400
228,300
292,800
408,600
942,500
132,500
424.600
599,600
410,000
966.700
14",300
443.700
621,600
1 Ari%ona, louisiano, New Mexico, Oklahoma, and Texas.
p-Preliminory.
SOURCE, Stale em ployment agencies.
Nov.
1951
Oct.
1952
3.7
.3
6.6
1.4
3.1
-.01
3.8
0
.0 3 -2.2
.5
3.'
8.8
4.0
3.6
.1
.9
-.06
-.5
- .09
MONTHLY BUSINESS REVIEW
32
ments for poultry and other animals. Construction is scheduled to be completed in 1954, and over 100 workers will
be employed. At the same time, it has been announced that
the initial shipment of acrylonitrile, a raw material for
synthetic fibers, has been made from a new plant at Texas
City.
Of particular importance at the moment is the expected
start of production of steel pipe in February at the Daingerfield, Texas, plant. This new steel mill is the first of two
such mills to be placed in operation at Daingerfield. The
combined yearly capacity of the two mills will be 350,000
tons of electric-weld tubing. The entire plant now employs
about 1,250 workers and will add 1,650 more when in full
operation. The importance of tubular goods to this area is
emphasized by recent reports which show that oil and oil
products now move through nearly 49,000 miles of commoncarrier pipelines in the State of Texas. This mileage compares with an estimated 47,500 miles at the end of 1951.
The value of construction contracts awarded in the Dis·
trict in December totaled $189,l4.7,000, by far the largest
for any month on record. All major categories experienced
sharp increases as compared with a year earlier, with several large contracts for industrial and other nonresidential
construction adding greatly to the total. Nonresidential
awards accounted for $153,000,000, which compares with
the previous monthly record of $101,000,000 reported in
May 1951. Residential awards, on the other hand, were
valued at about $36,000,000, which is less than the total for
November but still higher than for any previous December.
Construction contracts awarded in the District in 1952
were valued at $1,467,559,000, or 10 percent above the
previous record established in 1951; the United States total
in 1952 rose 6 percent. Residential awards in the District
in 1952, valued at $565,057,000, also were a record high,
showing a fractional gain over the previous year. Nonresidential awards for the year reached a total value of $902,502,000, which is 17 percent above the record of 1951. It
is particularly significant that total awards for construction
in the District through the first 9 months of 1952 ran 4
(In thousands of dollars'
January-December
December
1952p
December
1951
November - - - - - - - -
1952
1952p
1951
ELEVENTH DiSTRiCT .... S 189.147 $ 69.337 $ 101 .747$ 1.467.559$ 1.330.606
23,420
40,4 13
565,057
562,345
Residentiol. . • . . ... .
36,103
45,9 17
61,334
902,502
768,261
All other. . . . . . . . . . .
153,044
UNITED STATESt ••••.. 1,467,384
1,099,509 1,248,803 16,774,936 15,751,131
Residentia l. • • • • • . . •
438,580
346,104
528,429 6,667,504 6,205,388
All other .••...••..• 1,028,804
753,405
720,374 10, 107,432 9,545,743
1 37 ,totes east of Ihe Rocky Mountains.
~OJRCI~~i~~W·. Dodge Corporation.
«
..
Reports on construction contracts awarded in Texas in
1952 show that, in terms of value, 32 percent of the awards
was for public construction, while the remaining 68 percent
was privately finan ced. Contracts for private construction
constituted 65 percent of the total in 1951 and 74 percent
in 1950.
Information on residential building in Dallas, supplied by
the Dallas Power and Light Company, indicates that in the
week ended January 17, 1953, there were 1,726 one-family
units (residences, duplexes, and apartment buildings) under
construction, compared with 1,518 a year earlier. However,
completions during 1952 totaled only 7,935 units as against
9,728 in 1951. Residential building in Dallas in 1952 showed
a marked trend toward more construction of single-family
residences and less duplexes and apartment units.
Total production of building materials in the United
States in most months of 1952 for which data are available
was significantly below levels in corresponding months of
1951 and sharply below the peak rate of output in late
1950 and early 1951. Construction costs, on the other hand,
have continued to edge upward and in 1952 averaged around
4 to 5 percent higher than in 1951. In the latter part of the
year, wholesale prices of paints, lumber, millwork, plywood,
plumbing and heating equipment, and fabricated structural
metal products were slightly lower than a year earlier, while
prices of structural clay products, gypSunl products, paper
and paperboard, construction machinery and equipment, flat
glass, concrete products, asphalt roofing, and construction
wages averaged higher.
4
BUILDING PERMITS
12 months 1952
Percentage
change in
valuation from
Dec.
Nov.
Percentage
change in
valuation
from 12
months
1951
1952
1951
175
73
4,163
$ 19,477,033
24
19
4
14
-1
98
46
197
100
-51
-4
47
26
207
-31
246
-70
66
7
-50
6
-56
9
41
-61
-19
-8
203
125
20
267
1.344
4.5 46
3.122
2.697
4.413
21.037
3.647
11,000
1,326
11,413
3.244
2.108
17.198
3. 190
1.170
8,158,707
24,184,331
27.281,960
7,482,898
21,076,368
116,716,3 03
15,493,595
45,190,885
6,442,540
113,906,805
20,157,940
4,436,754
46,714,939
13,401 ,9 10
18.687,526
17
13
-6
5
16
20
6
6
-14
-13
11
-28
5
-12
123
44 -11
95.618
$508,810,494
December 1952
City
Number
lOUISIANA
Shreveport ••. .
VALUE OF CONSTRUCTION CONTRACTS AWARDED
Area and type
,
percent below a year earlier, but the total for the fourth
quarter was 84 percent higher than that for the same quarter
in 1951.
TEXAS
Abitene •••• .• .
Amarillo •••••.
Austin . •••.•••
Beaumont •••••
Corpus Christi ••
00110$ . •••. . ••
EI Poso ••...••
Fort Worth •• . .
Galveslon •. •. .
Houston ... .. . •
lubbock ••••.•
Port Arthur •• .•
Son Antonio •.•
Waco .•.•.•••
Wichita Fall$. .•
Valuation
265 S 1,3 56.672
56
248
211
71
349
1.2 37
270
736
48
665
216
82
1.139
159
100
260.989
1.595,059
1.626.098
171,377
1.476.594
6.349.864
1.279.03 1
3,21.4,492
119,040
8.300.301
1, 160,2 58
623.019
6.193.922
668.051
745,600
Tolal •.• . .••••. . 5.852 $35.140.367
Number
Valuation
4
@FedFRASER