The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
MONTHLY
BUSINESS
REVIEW
oft h e
Volume 35
FEDERAL
RESERVE
BANK
Dallas, Texas, January 1, 1950
of
Dallas
Numberl
PRICE SUPPOR TS, ACREAGE ALLOTMENTS, AND
MARKETING QUOTAS-THEIR SIGNIFICANCE
TO TEXAS FARMERS
Carl H. Moore, Agricultural Economist
Federal Reserve Bank. of Dallas
Out of the many proposals and counterproposals presented to the Congress in 1949, a compromise farm bill was passed which will be the basis for the farm program, at least in 1950. Further
revisions may be made during the coming session of Congress, inasmuch as many groups are not satisfied with the law.
Under present farm legislation, it is declared to be the policy of Congress to conserve national
resources and prevent wasteful use of soil fertility and to assist farmers in obtaining a per capita
income equivalent to the per capita income of nonfarm individuals (parity of income). To carry out
this policy, the Congress has directed the Secretary of Agriculture to make available to cooperating
producers-through loans, purchases, or other operations-price supports for (1) the six basic agricultural commodities--cotton, corn, wheat, tobacco, rice, and peanuts-at 90 percent of parity for
crops produced in 1950, at from 80 to 90 percent of parity for crops produced in 1951, and at 75
to 90 percent of parity for crops produced in 1952 and thereafter, provided acreage allotments or
marketing quotas are in effect; if neither marketing quotas nor acreage allotments are in effect, the
level of support shall be 75 to 90 percent of parity; (2) whole milk, butterfat, and products of such
commodities at 75 to 90 percent of parity; (3) wool, including mohair, at such level (between 60 and
90 percent of parity) as the Secretary of Agriculture shall deem necessary to encourage an annual
production of approximately 360,000,000 pounds of shorn wool; (4) tung nuts, honey, and Irish
potatoes at between 60 and 90 percent of parity; and (5) tobacco at 90 percent of parity any year
that marketing quotas are in effect.
The Secretary of Agriculture may support prices received by farmers for any other agricultural
commodity at 90 percent of parity or lower, the support level depending upon the supply-demand
relationship of the commodity, price levels at which other commodities are being supported, the
perishability of the commodity, the funds available for price-support operations, and other factors.
In the expenditure of certain funds, price supports for perishable nonbasic commodities, largely fruits
and vegetables, are given priority.
In order that production may be brought in line with demand and thus tend to reduce the need
for price-support operations, the law provides certain devices for controlling production:
Acreage Allotments: Acreage allotments, which are not dependent upon approval by producers,
specify the number of acres that may be planted to a specific crop. Within certain limitations prescribed by law, the Secretary of Agriculture establishes a national allotment, from which each state,
county, and farm is allotted its proportionate share based upon acreage of the crop in past years,
suitability of the land for production of the crop, and other factors. These allotments are adjusted at
the state, county, and farm levels to make them as fair and equitable as possible. Loss of price-support
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
2
MONTHLY BUSINESS REVIEW
benefits on the particular crop and, in the case of cotton, loss of seil conservatien payments are the
only penalties fer exceeding acreage alletments.
Marketing Quotas: Marketing quotas specify the ameunt ef a cemmodity that can be sold from
each farm without penalty. In general, the marketing quota for a commodity en a particular farm
is the actual preduction from the acreage efficially allotted fer that crop on the farm. Marketing
quotas must be preclaimed by the Secretary of Agriculture when estimated supplies of a commodity
exceed normal demand by a specified percentage. To be effective, however, quetas must be approved
by two-thirds of the preducers voting in a referendum; if producers disapprove marketing quotas, the
support price is reduced to 50 percent of parity. If marketing quotas are in effect, a producer must
ebtain a "marketing card" or "marketing tag" frem the local Production and Marketing Administration cemmittee before selling any ef the cemmedity. If he has complied with his acreage alletment, he
is permitted to sell all of his crep witheut penalty, but if he has exceeded the acreage alletment he is
net permitted to. sell any of the commodity until he has insured payment ef the maximum penalty fer
selling the ameunt ef the commedity preduced in excess of his marketing queta. This penalty, which
amounts to 50 percent of the parity price of the cemmodity, is assessed against any quantity seld in
excess of the marketing queta. Mereover, the preducer is ineligible fer price supports on any part
of his crep.
Soil Conservation Practices: As an incentive to. compliance with the preductien control
measures, the Secretary of Agriculture may require preducers to follow certain appreved practices
ef soil censervation in order to. be eligible fer price suppert. This requirement is most likely to. apply
to. land taken out ef production of a crop that is under acreage allotments. Benefit payments for
following certain soil conservation practices, such as terracing, liming, fertilizing, and seeding rough
areas to grasses, also may be withheld from producers who do net cemply with acreage alletments or
marketing quotas. In 1950 farmers who knewingly exceed their acreage allotments for cotten will be
ineligible for soil conservation payments, but producers of other commodities will be eligible even
th;mgh they exceed their allotments.
The new legislation also made certain changes in the definition of parity, revised minimum
natienal acreage allotments for most cemmodities, previded for the readjustment of state acreage
allotments, eliminated minimum acreage allotments for specific commodities en individual farms,
provided fer the establishment of an estimated loan rate for each commedity prior to the planting
season, and made other minor changes in administrative precedure. These changes, however, do not
affect materially the broad provisions of the farm program.
Some Effects of the Program
Seme actual and prespective legal interpretatiens, decisiens, and rulings may be ef majer impertance
ill planning crep programs in 1950 and succeeding years. Fer instance, it has been ruled that compliance with acreage alletments or marketing quetas in 1950 will be en an individual crop basis. This
means that a farmer may comply with restrictions on cotton productien but not with these en
another crop and still be eligible fer price-support benefits en his cetten crop and for soil conservation
payments. However, if a farmer exceeds his cotton acreage allotment he will not be eligible for soil
conservatiun payments, even theugh he may be in compliance with acreage allotments on other
crops. The farmer apparently has freedom to plant the acres taken eut ef production of crops under
allotment to any ether crep.
Inasmuch as the feregoing privileges, to a considerable extent, may render ineffective the centrel
ef crop production, the Secretary ef Agriculture may readopt a ruling which was a part ef the prewar
production contrel program. That ruling required producers to. comply with all phases of a program
in order to ebtain benefits under anyone part of the price-support or soil conservatien programs.
Under that ruling, a farmer who overplanted his cetten acreage also became ineligible for price supports en any ether crop, such as peanuts er wheat, even though he was in compliance with the regulations on those creps. Mereever, payments for establishing certain soil censervation practices, such as
terracing, centour plewing, and seeding of grasses, were conditioned upon compliance with acreage
allotments on all crops under control. The freedom now accorded to. farmers to shift the acreage taken
out ef crops under alletment is likely to aggravate greatly the problem of crop control. It seems probable, therefere, that the Secretary of Agriculture may use the authority granted to him under the law
f
MONTHLY BUSINESS REVIEW
(according to present interpretations) to specify the crops that may be planted on land taken out of
production of crops under acreage allotments. Such specifications could prohibit the planting of any
soil-depleting crop, such as corn, grain sorghums, rice, flaxseed, or othec row crops, on acreage taken
out of crops under allotment and could require the diverted acreage to be shifted to soil-building crops,
such as legumes and grasses.
In 1950, acreage allotments and marketing quotas will be in effect on cotton. The Texas cotton
allotment of 7,637,000 acres is about 3,000,000 acres or 27 percent below the 1949 acreage and about
10 percent below the 1947-48 average acreage. In general, individual farm allotments, under present
legislation and interpretations, do not exceed the smaller of (1) 50 percent of total cropland on the
farm or (2) the largest acreage in cotton during 1946, 1947, or 1948. Thus, a farmer with 200 acres
of cropland who had planted 175 acres to cotton in either 1946, 1947, or 1948 and who lives in a
county where the maximum cotton allotment for 1950 is 50 percent of total cropland (called the
"county factor") received an allotment for 1950 of about 100 acres. On the other hand, another
farmer with 200 acres of cropland in this same county who had limited his cotton acreage in 1946,
1947, and 1948 to 75 acres received a 1950 allotment of only 75 acres.
Acreage allotments are in effect on the 1950 wheat crop, and although revisions in the law have
provided for increased allotments, a reduction of about 20 percent is indicated in the State's wheat
acreage for 1950. Peanut growers of the State received a 20-percent reduction in their acreage for
the 1949 crop and will be asked to cut their acreage another 20 percent in 1950, while marketing
quotas will again be in effect. Rice production will be under acreage allotments in 1950, and marketing quotas are probable. It is expected that the Texas rice allotment will be about 400,000 acres, or 20
percent less than the 1949 acreage. Whereas acreage allotments for most crops are made upon the
farm rather than the farm operator, acreage allotments for rice in Texas are expected to be made for
the farmer rather than the farm. In other words, the farmer who has produced rice several years
but has moved from farm to farm will be given an allotment based on the acreage he has grown rather
than the past acreage of the farm he is currently operating. Acreage allotments are probable for the
1950 corn crop but will apply only to "commercial" corn-producing area, which does not include
Texas.
Acreage allotments appear alm06t certain for all of the basic crops during the next 2 or 3 years
and are probable for some nonbasic crops, such as flaxseed, grain sorghums, and potatoes, unless there
is a severe decline in production, a greatly increased demand, or a major change in the farm law.
During the next few years marketing quotas are probable for cotton, peanuts, rice, and tobacco
and may be invoked for wheat and corn.
What Does this Mean to Texas Agriculture?
Application of the control program on a substantial scale in Texas during 1950, for the first time
in nearly a decade, follows a year in which near-record acreages, together with good to excellent yields,
resulted in the largest physical volume of production in the history of the State. Of special significance
were the highest per acre yield of cotton in more than 50 years and the record total cotton production.
The value of production also was a record, despite some price recession. In contrast with this high
production, the 1950 control program calls for a reduction in acreage of the four major cropscotton, wheat, peanuts, and rice-which would reduce total acreage of Texas crops more than
4,000,000 acres, or 13 percent below the 30,000,000 acres harvested in 1949. Furthermore, if history
repeats itself, yields of most crops in 1950 are not likely to equal the very good yields of 1949. Two
successive years of favorable weather and high yields for major crops in Texas are unusual. Thus,
tot:11 volume of production in 1950 appears likely to be substantially below that of 1949; this,
together with the probability of some further price decline, would materially reduce the value of
production and the income to Texas farmers. For example, the probable production of cotton, based
on the allotted acreage of 7,637,000 acres and the 10-year (1940-49) average yield of 181 pounds,
would amount to only 2,765,000 bales, or 53 percent less than the 1949 production. On the basis of
1949 prices, the reduction in income as a result of this smaller production would be nearly one-half
billion dollars.
The impact of the decline in farm income will be felt throughout the State, but it will be
particularly severe on communities where farm income is derived largely from one or more of the
3
4
MONTHLY BUSINESS REVIEW
crops under control. Communities with a diversified farm program will experie::nce a somewhat smaller
decline, and in all communities the loss of farm income will be modified to the extent that acreages
can be utilized profitably for the production of crops not under control.
The immediate impact of the program on production and income of communities and individual
farms emphasizes the necessity for reorganizing the operation of many farms. Acreage of crops, such
as cotton, wh(at , peanuts, and rice, may be reduced by allotments to the point where their production
will be unprofitable. On such farms, as well as on farms where these cash crops continue to be a major
source of income, there will be an urgent need for diversification to include in the farm program more
than one crop and increased production of soil-building crops, including hay and pasture, which, in
turn, will create a need for expanding livestock production for profitable utilization of these crops.
This diversification of farm operations, with the resulting increased stability of individual farm
incomes and higher yields per acre brought about by greater use of legumes, commercial fertilizers, and crop rotations, is likely to be a major benefit of the control program. It is important,
however, to keep in mind that the transition from last year's program to that of the future may work
severe hardships upc:n individual farmers and may create innumerable financial and managerial problems. The new farm program will require additional information and skills for growing new crops,
operating new machines, caring for livestock, and managing a diversified farm operation.
Reorganizing the Crop Program
One of the first problems facing farmers in the reorganization of their farm plan is the selection
of crops to be grown on the acreage taken out of production of crops under allotments. Crop plans
this year may be considered somewhat as "stop-gap" measures which will be most effective in maintaining farm income and yet permit the beginning of a longer range plan for shifting to new cash
crops or to larger acreages of hay and pasture and an increased livestock program. It requires several
years to build a profitable livestock program and to revise the crop program in line with present
and anticipated control measures. During the transition years many farmers will need to rely largely
on cash crops which can be grown with present knowledge and equipment. Such a program also
permits the establishment of a "base" on crops that the farmer may want to grow in later years and
on which acreage controls may be imposed.
Mmt profitable yields and best insurance against crop failure can be obtained by considering only
crops that arc well suited to the soils, level of fertility, rainfall, and average growing season of the
farm. The accompanying tables show the crops best adapted to each type-of-farming area in Texas,
although the possibility of growing new or unusual crops should not be overlooked. Experience during
recent years has shown that, with improved practices and better management, many crops formerly
believed unadapted to certain areas can be grown profitably.
In so far as possible, maximum acreage of crops which will provide a high dollar return per acre
should be grown in order to maintain maximum farm income. In appraising the probable value per
acre of variOl'S crops, it is important to use average or normal yields for the farm and average prices
received for the crop. In planning a long-range program it usually is advisable to use a 1 O-year average
pric~ rather than the price for any particular year, although in the next 2 or 3 years, 5-year (1943-47)
average prices may be more realistic. In any event, support prices, whenever available, should be used
in evaluating each crop. Both 10-year (1938-47) and 5-year (1943-47) averape farm prices are given
in the accompanying tables.
Total costs of producing the crop are not easily computed, but the cash costs, such as for picking
cotton, for combining wheat and small grains, for seed and insecticides, and-within limits-for seeding and cultivating, can be estimated rather accurately and should be taken into consideration in
appraising the relative value of each crop.
In evaluating new crops, careful attention should be given to the knowledge, skills, equipment,
and labor needed for their successful cultivation. If the farmer is unfamiliar with the crop, it should
be grown 011 a limited acreage for the first few years so that the farmer may learn the new practices
and methods before risking investment in seed, fertilizer, labor, and other costs required for production
MONTHLY BUSINESS REVIEW
on a larger scale. Tn.: costs of additional equipment and labor needed for the production of new crops
should be included in their appraisal.
Final determination of the kinds and amounts of crops to be grown on an individual farm depends
largely upon tile over-all farm program. If an increase in livestock production is undertaken, the
acreage at feed crops should be expanded. However, if the livestock program is of minor importance,
then maximum effort should be devoted to the production of cash crops and of necessary legumes and
cover crops to maintain soil fertility. In any event, the crops grown should be adapted to the soil and
climate of the farm, should provide a relatively high income per acre, should be within the range
of the farmer's ability and of available labor and equipment, and should fit in with a desirable program
of soil conservation and management.
Crops for Texas
The wide range of soil and climatic conditions in Texas makes it desirable to discuss crop programs
on the basis of type-of-farming areas in the State. These areas, based primarily on soil and climatic
conditions, are outlined in the accompanying map. While the types of agriculture within each area
may vary with local soil conditions, the areas are reasonably accurate in outlining types of farming in
the State.
TVPE-OF-FARMING AREAS IN TEXAS
SOURCE ' BULLETIN 544 OF THE TEXAS
AGRICULTURAL EXPERIMENT
STATION .
6
MONTHLY BUSINESS REVIEW
Much of the information contained in the following description of type-of-farming areas, including list~ of adapted crops, normal yields, and estimated yield per acre with improved management
practices, has been compiled with the help of specialists at Texas A. & M. College and Texas Technological College. However, the author takes full responsibility for the material as presented in this
study. The estimates of yields are based on the average results obtained by farmers in the respective
areas. Some farmers obtain much higher yields than those listed under the heading "Estimated yield
per acre with improved management practices," but the yields shown are conservative estimates of
results that can be expected over a period of years by farmers with average managerial ability. The
average prices, which were discussed earlier, were computed from average prices received by Texas
farmers as reported by the United States Department of Agriculture.
Panhandle Wheat Area (Area 1)
I n th;s area, lack of moisture is most likely to limit crop production; therefore, farmers should
maintain a flexible crop program that can be adjusted to the available moisture supplies. Proper fallowing of land is the most important soil- and moisture-conserving practice in this area and, where
practiced, has increased yields of wheat as much as 75 to 100 percent over yields on land planted
continuously to wheat. Contour cultivation, use of stubble mulch, and chiseling, when necessary, are
essential to moisture conservation du ring the fallow period. Just leaving the land idle or allowing weeds
or volunteer wheat to make a rank growth depletes moisture supplies. Fallowing 1 year in 3 is generally
recommended for wheat land.
Wheat is the principal crop
produced in this area, and on
most farms, is likely to be the
most profitable. During reEstimated
Estimuted yield
1943-47
1938-47
n.,mal
."" acrew;tb
1'",,,
T".,
cent years large profits reyield
improved manage·
ave~e
a\'erage
1
f
h h
d
Crop
per aere
ment practices
farm pn ce
rarm price
Sl1 ting rom ig prices an
Wheat ..... . . . . . . . . .. .. . ..
9 bu.
11 bu.
$1.62 per bu.
$1.21 per bu.
favorable weather have inGrain sorghums. . . . .... . ...
12 bu.
15 bu.
1.28 per bu.
0.91 per bu.
duced farmers to plant the
Barley. . . . . . . . . . . . . . . . • . • .
10 bu.
12 bu.
1.11 per bu.
0.77 per bu.
I
bl
Oats (sout hern part) . . . . •. . .
20 bu.
25 bu.
0.82 per bu.
0.60 per bu.
argest possi e acreage to
~~~~u:
~r. ~O~8ge .... .. :::::
U~~
~:~g ~~:
wheat. This practice, howAdapted grnsses. . . . . . . . . . . .
. .. .. .. .
: :: :: :::::::
:::::::: :: :.
ever, is not likely to be profitable over a period of years,
inasmuch as it rapidly depletes soil fertility and moisture supplies. Moreover, the imposition of acreage
allotments will tend to limit wheat acreage to approximately two-thirds of the total cropland.
Throughout this area there are sections which have been seeded to wheat in recent years that would be
more profitable for the production of range and pasture grasses.
CROPS ADAPTED TO THE PANHANDLE WHEAT AREA
(AREA I)
..... .... ...
... .. .. .....
Grain sorghums and barley are two other crops well adapted to the climate and soil of this area.
Grain sorghums are planted most frequently as a substitute for wheat in years when acreage abandonment is heavy and when spring rains provide sufficient moisture for a sorghum crop. Winter barley
is more productive than spring-seeded barley, and the more hardy, adapted varieties, such as Ward and
Reno, are generally recommended for fall planting; however, the less winter-hardy but more productive Wintex variety will survive most winters. If spring seeding is necessar y, Wintex should be
used. Sudan grass is a valuable forage crop that is drought-resistant and produces excellent pasture.
Rye can be used as a cover crop to reduce wind erosion and may also provide some pasture. Yields of
oats, except in the southern part of the area, and of corn are too low to be profitable.
A limited amount of acreage is being irrigated in Deaf Smith County, and sugar beets and
vegetables, especially Irish potatoes, are proving to be profitable crops. Some expansion of this program
may be feasible, but farmers should consult their county agricultural agent and experienced farmers
before attempting production of these crops.
Canadian River Grazing Area (Area 2)
This area is not suited
to
cropping and should be used only for pasture.
7
MONTHLY BUSINESS REVIEW
High Plains Cotton Area (Area 3)
Dry land: Cotton, wheat, and grain sorghums are the crops best suited to this section. Maximum
acreage of these crops consistent with sound soil management and water conservation is most likely
to yield highest income. Use of rye in the control of wind erosion and the practice of fallowing, including proper handling of stubble and other crop residue, to conserve moisture are desirable in most
of the section.
Irrigated: A wide range of crops, including cotton, grain sorghums, sugar beets, vegetables,
alfalfa, Sudan grass, and many pasture grasses can be grown successfully under irrigation. If necessary
to reduce acreage of cotton or other cash crops, consideration should be given to the possibility of
increasing the acreage of pasture mixtures, such as alfalfa and annual ryegrass. These irrigated pastures,
if limited to 5 or 10 acres for each well, provide abundant feed for livestock, and net returns from
grazing may equal or exceed those from the production of cash crops.
Production of vegetables,
including lettuce, carrots,
and potatoes, has proved
highly profitable for farmers
who are familiar with the
problems involved and have
had a reliable market outlet.
However, the problems of
vegetable production frequently are quite different
from those incurred in the
production of most field
crops. For instance, a dependable local market outletcanning plant or packing
shed-is absolutely essential
and should be assured before
any seed is planted. Diseases
and insects present special
problems and must be given
careful attention during the
growing season. Furthermore,
the harvest of the crop generally requires large amounts
of hand labor and frequently
must be completed within a
very short period.
CROPS ADAPTED TO THE HIGH PLAINS COTTON AREA
(AREA 3)
llltimated yield
per acre with
improved ma~
Estimated
normal
yield
Dry land
Cotton lint ....... .. .... .
185 lb••
225 lb••
400 lbs.
Cottonseed . . . ...... . . . 330 lb•.
11 bu.
Wheat .. ... . . . ......... .
9 bu.
Grain sorghums . ....... . .
20 bu.
24 bu.
2.0 tons
Sorghums for forage .. . .. . 1.7 tons
Sudan grass . . . ...... .... . 1.7 tons
2.0 tons
Sudan grass for seed . . ... . 500 to 600 lb•. per acre
have been obtained
12 bu.
Barley .... . ....... ... .. .
10 bu.
SoU-building crops:
Hairy vetch ..... .... . .
........
- .. '"
Alfalfa ............. .. . .
.
Abruzzi or Balboa rye . . ....... .
Cowpeas .. . .. . . . .. . .. . . , ... ...
. ... .. ..
Adapted grasses ....... . . .......
.
.. ...
....
.. ... ..
.. ..... .
.......
193847
Texaa
ment. practices
per",,",
CroP
1943-47
.. Tcxu
aver~e
ave~e
farm price
farm prIce
$ 0.25 per lb.
0.03 per lb.
1.62 per bu.
1.28 per bu.
5 0.18 per lb.
.. ... ..... ..
... ..... ... ,
0.02 per lb.
1.21 per bu.
0.91 per bu.
. ...... .....
.... ... .....
6.17 per cwt.·
0.77 per bu.
8.90 per ewt. •
1.11 per bu.
. ... .... ....
. ... ..... .. .
. ... .. .... ..
. ........ .. .
. .. .... .....
...... .. .. ..
. .. ...... .. .
. ... ... .....
. .. ... .. ....
0.25 per lb.
0.03 per lb.
25.94 per ton
1.28 per bu.
10.58 per ton··
1.11 per bu.
0.18 per lb.
0.02 per lb.
19.32 per ton
0.91 per bu.
8.08 per ton'·
0.77 per bu.
. .. ... ......
Irrl~ated
Cotton lint ... ..... . •.•..
Cottonseed . .. . ... . ... .
Alfalfa hay ........ . . . .. .
Grain sorghums . . .. . ... . .
Sugar beets ...... .. .... . .
Barley . . . . . ... .. . ...... .
Sorghums for forage . .... .
Sudan grass .. .. .. . ... . . . .
Irrigated pasture mixtures.
Vegetables ...... . . . .. ... .
SoU-building crops :
Alfalfa ... . . . ........ . .
Hairy vetch ... .... . . . . .
Austrian winter peas ... .
Sweet clovers . . .. .. ... .
Ladino olover . . . ... .. . .
400 lbs.
720 lb••
5 tons
40 bu.
15 ton.
40 bu.
2.5 tons
2.5 tons
....... .
•
0
·
0
••
0
•
•
•
0.
••
•
•
••
0
•
•
•••
500 lbs.
900 lb•.
6 tons
55 bu.
18 tons
60 bu.
5 tons
5 tons
.... ....
... .....
........
..... ...
....... .
....... .
. .. ... ..
... ... ......
. ... . ... ... .
. ..... .... ..
. ....... ... .
. .. ....... . .
•
••••
•
0
•••
•
•
. ...... .....
...... .. ... .
. .. ... ......
... .... .....
. .... .. .....
. ... ..... ...
.
.
0
•
•
•
••
•••
•
•
•
••••
•••
0
•
•
. ... ... . ... .
' " ..... ....
. ... ...... ..
. .... .. .....
, Average price at Kansas City•
The higher per acre yields
•• Uuited States averago farm price.
obtained from land under irrigation increase the amount
of plant food removed from the soil; hence, the restoration of fertility through the effective use of
legumes, manure, commercial fertilizers (especially phosphate on alfalfa under irrigation), and crop
residue is extremely important. Conservation of underground water supplies is also an important problem and is dependent, at least in part, upon efficient and conservative use of water for irrigation.
Rolling Plains (Area 4)
W'heat, cotton, grain sorghums, and, in sandy sections, peanuts are likely to be the most profitable
crops in this area. Oats and barley can be grown successfully in some sections, particularly southern
8
MONTHLY BUSINESS REVIEW
and eastern counties, and frequently are included in the rotation. In most of the area, corn is more
uncertain than grain sorCROPS ADAPTED TO THE ROLLI NG PLAINS
ghums, although the develop(AREA 4)
ment of adapted hybrid varieties is increasing the rela1938-47
Estimated yield
Jll43-47
&timated
T,,,,,,
Texas
normal
per acre with
tive importance of corn. The
average
averuge
improved manageyield
rarm price
rllJ"m Price
ment pra.etices
Crop
per acre
use of rye to control wind
$ 0.18 per lb.
$ 0.25 per lb.
J 60 Ibs.
1351bs.
erosion and summer fallow to Cotton lint ............ . . . .. 245 Ibs.
0.03 per lb.
0.02 per lb.
2001bs.
Cottonseed . .. ..........
0.91 per bu.
1.28 per bu.
18 bu.
15 bu.
conserve moisture should be Grain sorghums ....... . ... .
2.0 tons
Sorghums for forage ....... .
1.7 tons
included in a suitable crop Sudan grass .............•.. 1.7 tons
2.0 tons
1.21 per bu.
1.62 per bu.
....... . . .....
10.0 bu.
rotation for many farms in Wheat .... .................. .. 8.5 bu.
0.08 per lb.
0.06 per lb.
400 Ibs.
480 Ibs.
Peanuts .
19.32 per ton
25.94 per ton
2.5 tons
northern areas. The diversity Alfalfa hay .....•...• . .... . 2.0 tons
13.89 per bu.
3 - 5 bu.
18.18 per bu.
Alfalfa seed ....... . . . . • . . . . 3 - 5 bu.
of soils and climatic condi- Oats ...............•......
0.82 per bu.
0.60 per bu.
30 bu.
26 bu.
0.77 per bu.
1.11 per bu.
20 uu.
25 bu.
Barley ...................
tions in this area makes it dif- Corn .......... ... ........ ..
1.45 per bu.
1.04 per bu.
20 bu.
12 bu.
ficult to suggest definite crop Soil-building crops:
Alfalfa ... .. . .. ........ . .
rotations. In general, a leH ubam & Madrid sweet
gume, such as hairy vetch,
clovers ...... . ...... . . .
Hairy vetcb .... ... . .. ... .
alfalfa, or sweet clover,
Austrian winter peas ..... .
Adapted grasses .. ... . ... .
should be used in a rotation
that includes cotton, grain
sorghums, or peanuts. Where wheat is the major crop, summer fallow and grain sorghums should be
included in the rotation. If peanuts are grown, proper precautions should be taken to prevent wind
erosion of the cropped area.
Trans-Pecos Area, Upper Rio Grande Valley, and Edwards Plateau
(Areas 5, 6, and 7) - Irrigated Sections Only
Cotton, alfalfa, and vegetables, especially cantaloupes, are the principal crops in this area. The
climate is almost ideally suited to the production of cotton, which is the most profitable crop; hence,
it would appear desirable to maintain maximum production of cotton consistent with production
control programs and the maintenance of soil fertility. Alfalfa produces satisfactory yields and, being
a legume, stores nitrogen in the soil. Many vegetable crops could be grown, but the great distance
from any large market and
CROPS ADAPTED TO THE IR RIGATED SECTIONS OF TRANS-PECOS AREA,
the competition from estabUPPER RIO GRANDE VALLEY, AND EDWARDS PLATEAU
lished vegetable-producing
(AREAS 5, 6 and 7)
areas, such as the Winter
Estimated
Efttimated yield
193B-47
Garden section in Area 8, the
normal
per acre with
Texas
Texas
yield
average
improved manaaeaverage
Crop
por ....
ment practices
(arm price
farm price
Lower Rio Grande Valley,
Cotton lint .. . . " .. . ... . .. .
600 1bs.
650 Ibs.
:$ 0.25 per lb.
S 0.18 per lb.
and the irrigated sections of
Cottonseed ..... . ....... . 1,0801bs.
0.02 per lb.
1,170 Ibs.
0.03 per lb.
Arizona, are likely to restrict
Cotton (long staple) ....... .
300 1bs.
0.49 per lb.'
0.39 per lb. '
325 Ibs.
Alfalfa bay . . . . . ...... . ... .
3.0 tons
19.32 per ton
4.0 tons 25.94 per ton
vegetable production unless
Grain sorghums .. . .. . ..... .
45 bu.
0.91 per bu.
60 bu.
1.28 per bu.
a special market is developed.
Vegetables ................ .
• Prices vr American-Egyptian cotton at EI Paso. Phoeou:, and Amona territories. Base quality is No.2. Staple l;i inches.
Grain sorghums are well
adapted to these areas, and
the production of grain sorghum seed might be a profitable use for some acreage taken out of cotton.
The dry climate permits the production of a very clean, high-quality seed; and with the increased
.acreage of sorghum in Texas, the demand for seed is likely to remain strong.
19j3~7
Rio Grande Plains (Area 8)
Crop production generally is limited to the eastern counties and to irrigated sections throughout
the area. Lack of rainfall is a serious limitation to production in western counties, while large sections
of southern and southeastern counties are covered with brush and are not suitable for crop production.
In the eastern counties cotton, grain sorghums, peanuts, flaxseed, and broomcorn are the principal
cash crops; Sudan grass and sorghums are the most productive forage crops; and annual sweet clovers,
9
MONTHLY BUSINESS REVIEW
vetches, winter peas, and guar are recommended soil-building crops. It is extremely important that
farmers give adequate attenCROPS ADAPTED TO THE RIO GRANDE PLAINS
tion to soil-conservation and
(AREA 8)
soil- building practices to
Estimated yield
Estimated
1943-47
1938-47
maintain fertility and insure
per acre witb
Texas
normal
Texas
yield
improved IIl1Ull\8e·
profitable yields. This is espement practices
farm prICe
farm prlce
Crop
Jl" ""'"
cially true in the sandier sec- Irrigated
.. .... ... . ..
.. .. .. ... . , .
Vegetables . . . . . . . . . . . . ... . ...... .
tions, where organic matter
.. ... ... , ..... . ... . . . ....... ....
Citrus fruits. . . . . . . . . . . . . . . ...... .
and plant food are easily de20 bu.
Grain sorghums......... .
27 bu. $ 1.28 per bu. $ 0.91 per bu.
..... ... .. . . . .... , ......
Sorghums for forage . . . . . .
3.0 tons
3.5 tons
pleted.
al'er~e
In the irrigated sections a
wide variety of crops, including vegetables, citrus fruits,
grain sorghums, and many
forage crops, can be grown.
Most of the production under irrigation has been vegetables, and considerable expansion of vegetable production and even of citrus fruits
is feasible, provided adequate
markets and transportation
facilities are assured.
Dry land
Grain sorghums .. . . . . ... .
15 bu.
18 bu.
Sorghums for forage ..... .
1.5 tons
1.7 tons
Peanuts . ... . . . ... . . . ... .
540Ibs.
6001bs.
Cowpeas (for canning)
2.5 tons
3.0 tons
Sudan grass ....... . ..... .
1.5 tons
1.7 tons
Cotton lint
(eastern counties) . . . . . .
200 lbs.
2501bs.
Cottonseed. . . . . . . . . . . .
360 lbs.
450Ibs.
9 bu.
Flaxseed.. .. .. .. .. .. .. ..
12 bu.
Broomcorn. . . . . . . . . . . . . .
300 lbs.
3501bs.
Soil-building crol's : (irrigated and dry land)
Guar (in rotatlOn with
flaxseed) . . . . . . . . . . . . . ... ... .
Alfalfa (western counties)
Willamette, common, and
hairy vetch • . .. . . . . . .
Austrian winter peas . . . . . . . .... .
Sweet clovers •.... . . . ..
Adapted grasses . . . . . . . .
1.2S per bu.
.... ... .. . . .
O.OS per lb.
. .... ... . .. .
.. .. ....... .
0.25 per lb.
0.03 per lb.
3.39 per bu.
260.00 per ton
aver~e
0.91 per bu.
.. ......... .
0.06 per lb.
.. ... .......
.. .... .... ..
O.IS per lb.
0.02 per lb.
2.53 per bu.
177.00 per ton
Oats and Hubam clover recently have been introduced into the area as winter pasture crops.
These crops, which are usually seeded in late September or early October and are ready for grazing
by November, will carry about one yearling per acre from December to June. These winter pastures
have proved valuable in eliminating weeds from fields that have been cropped continuously. The use
of Hubam clover in the pasture mixture adds nitrogen to the soil, and its deep roots loosen the soil
and make cultivation easier.
Lower Rio Grande Valley (Area 9)
A long growing season and facilities for irrigation make this area adaptable to the production
of a wide range of crops, including citrus fruits, vegetaCROPS ADAPTED TO THE LOWER RIO GRANDE VALLEY
bles, cotton, corn, grain sor(AREA 9)
ghums, and alfalfa. Citrus
Estimated
Estimated yield
1943-47
1938-47
normal
Te"",
per acre with
Texaa
fruits, especially grapefruit,
yield
improved mnnag().
average
Crop
per ....
(arm price
ment practices
farm price
have been one of the princiIrrigated
pal crops, although the exGrapefruit ...... ... . . .. . . 300 boxes
375 boxes S 1.10 per box $ 0.82 per box
Oranges . ... . .... .. ..... . 210 boxes
tensive damage to citrus or275 boxes
2.14 per box
1.66 per box
Cotton lint . .... .. . . .. .. . 500 Ibs.
600 Ibs.
0.18 per lb.
0.25 per lb.
chards caused by the severe
Cottonseed .... ..... . . . 900 Ibs.
1,000 Ibs.
0.02 per lb.
0.03 per lb.
Alfalfa hay . .. ..... ... . . . 3.3 tons
freeze in January of 1949
19.32 per ton
4.5 tons
25.94 per ton
Grain sorghums . . . .. . .. . .
50 bu.
0.91 per bu.
1.28 per bu.
75 bu.
emphasized the value of a
Corn· .. ... . .. . . . ..... . . . 50 bu.
1.04 per bu.
1.45 per bu.
75 bu.
Vegetables .. . ... . ...•.• .. . .. ... ..
.. . . . . . . . . . . . ... .. ...... diversified operation. While
Dry land
specialization in one or two
Cotton lint ............ . .
225Ibs.
175 lb•.
0.25 per lb.
0.18 per lb.
crops may improve efficiency,
Cottonseed . .. .... .... .
2601bs.
0.02 per lb.
3401bs.
0.03 per lb.
the increased risks of finanGrain sorghums . . . ... . . . .
15 bu.
0.91 per bu.
1.28 per bu.
18 bu.
Sorghums for forage ... .. .
...... ..... .
1.75 tons
2.25 tons
... .. ... .. ..
cial loss due to adverse
Sudan grass .. . ...... .. . . .
1.75 tons
...... ... .. .
........ .. . .
2.25 tons
weather or to an abnormally
Soil-building crops:
Alfalfa . ... . ....... .. . . . . . . . . . .
low price for anyone crop
... ... .. ... .
. ... .. . ... ..
Hubam and Melitotus
make it advisable to build a
indica annual sweet
clovers ... . . . . . .. ... .
diversified crop program.
Willamette, common,
Citrus fruits, vegetables, and
and hairy vetch ..... .
cotton undoubtedly will conAustrian winter peas ... .
Sea breeze wheat .... . . .
tinue to be the major crops;
Adapted grasses . ...... .
and while it may not be feas·Very little corn ncept sweet corn and hybrid seed : orn has been grown in the Valley, but yields suggest that it otTere a poIIsible alternative BOp.
ible or desirable to combine
a_
10
MONTHLY BUSINESS REVIEW
the production of these crops on one farm, diversification can be achieved by including on each farm
more than one kind of citrus fruit or several types of vegetables or cotton plus other crops, such as
alfalfa, grain sorghums, corn, and vegetables.
~
Conservation of irrigation water, development of adequate drainage facilities, and maintenance
of soil fertility are three problems of major importance in the lower Rio Grande Valley. Continued
expansion of the acreage under irrigation has caused temporary shortages of irrigation water in some
sections. In other sections inadequate drainage has caused an accumulation of undesirable salts in the
soil and has reduced productivity. Due to the depletion of virgin fertility, large amounts of commer- '
cial fertilizer are now being used, and many farmers are planting legumes and green manure crops ~
to replenish organic matter and nitrogen in the soil. These problems must be given adequate attention ~ \
if maximum profits are to be obtained.
'
l'
Corpus Christi Area (Area 10)
.!
CROPS ADAPTED TO THE CORPUS CHRISTI AREA
(AREA 10)
Cotton, grain sorghums, '/
and vegetables generally are·
Estimated yield
194:3-47
103847
Estimated
the most profitable crops, alJ)e'r acre with
Texas
normal
Tm.
yield
improved manageaveraqe
ave"",e
though satisfactory yields of~
farm price
per acre
farm price
Crop
ment PfnctiC1:6
flaxseed and of forage crops,:'
2251bs.
3251bs. $ 0.25 per lb.
$ 0.18 per lb.
Cotton lint .... . .......... .
0.02 per lb.
Cottonseed ... . . . ....... .
~40 Ibs.
4S51bs.
0.03 per lb.
such as sorghums and annual
0.91 per bu.
1.2S per bu.
Grain sorghums ........... .
30 bu.
36 bu.
sweet clovers, are obtained.
1.04 per bu.
1.45 per bu.
Corn ... ... ..... .. ........ .
18 bu.
30 bu.
9 bu.
12 bu.
2.53 per bu.
3.39 per bu.
Flaxseed .................. .
Highest productivity of all
260.00 per ton 177.00 per ton
3001bs.
3501bs.
Broomcorn .. ... .......... .
crops, including vegetables, is
Sorghums for forage ..... . . .
3.5 tons
3.0 tons
Sudan grass ............... .
3.5 tons
3.0 tons
obtained when a suitable roOats (for grazing) ......... .
tation is followed. FurtherSoil-building crops:
Guar (with flaxseed) ..... .
more, all cropping systems
Hubam and Melitotus
indica annual sweet
should make maximum use
clovers ............... .
of legumes and cover crops
Willamette, common, and
hairy vetch . .... .. .... .
to maintain and improve soil
Austrian winter peas . . ... .
productivity and should proAdapted grasses ......... .
vide for the production of at
least three major crops to spread the risk of financial loss due to crop failures or low prices.
Northcentral Grazing Area (Area 11)
CROPS ADAPTED
Cattle ralSIng predominates in this region, and crop
production generally should
be limited to feed crops. CotCrop
ton is grown on many farms, Peanuts .................. .
but yields are usually very Wheat ... .. ..... . .. .. . ... .
Oats ..................... .
low. A limited acreage of Barley ... .. ... ... ........ .
Grain
cash crops, such as wheat, . Corn ..sorgbums ........... .
... .............. '"
Cotton lint .... . .......... .
peanuts, and cotton, can be
Cottonseed ............. .
profitable if plantings are re- Sorghums for forage ....... .
stricted to the better soils lo- Sudan grass ...... ... . . .... .
Soil-building crops:
cated in the more fertile valAlfalfa (western counties) ..
Hairy vetcb ... . ......... .
leys and bottoms. The crop
Hubam and Madrid sweet
clovers ............... .
rotation should include a soilAustrian winter peas ... .. .
building crop, such as alfalfa,
Adapted grasses ......... .
vetch, or Austrian winter
peas, to maintain soil fertility
and insure profitable yields of cash and feed crops.
TO THE NORTHCENTRAL GRAZING AREA
(AREA 11)
~imated
normal
yield
per acre
Estimated yield
per acre wi tb
improved mant\g&ment practices
4501bs.
S bu.
25 bu.
20 bu.
15 bu.
14 bu.
102lbs.
1801bs.
1.5 tons
1.5 tons
5501bs.
]0 bu.
30 bu.
25 bu.
IS bu.
30 bu.
2001bs.
360 lbs.
2.0 tons
2.0 tons
. .......
. .......
........
. .... ...
...... ..
. ...... .
. .......
. .......
. .......
•
1043-47
Texaa
8ver~e
farm price
SO.OS per lb.
1.62 per bu.
0.S2 per bu.
l.l! per bu.
1.28 per bu.
1.45 por bu.
0.25 per lb.
0.03 per lb.
............
.. ..........
.... .
. ...... . ....
. . .... ... ...
. . ... .... . ..
. ...... . ....
1038-47
Telafl
6ver~e
farm pnce
$0.06 per lb.
1.2l per bu.
0.60 per bu.
0.77 per bu.
0.9l per bu.
1.04 per bu.
O.IS per lb. ,
0.02 per lb.
. ........ ' .'.
.. . . .... ....
. ......
. ...........
. . . . . .. .. .. .
11
MONTHLY BUSINESS REVIEW
West Cross Timbers Area (Area 12)
The light, sandy character
CROPS ADAPTED TO THE WEST CROSS TIMBERS AREA
of the soil and the gently roll(AREA 12)
ing topography of this region
1943-47
1918-47
EstilJl3.ted yield
Estimated
Texas
normal
per acre with
Texas
make the selection of crops
yield
improved man.ageaverage
avcraae
farm price
fazm price
Crop
per acre
meot pracEces
extremely important. PeaS 0.06 per lb.
5501bs. S 0.08 per lb.
nuts, fruit, and watermelons Pe.~nuts................... 4621bs.
285.00 per
8 tons 400.00 per
are the three crops best Watermelons...............
5 tons
1,000 melons
1,000 melons
0.91 per bu.
1.28 per bu.
Grain sorghums ...........
15 bu.
25 bu.
adapted to this area. Feed Corn .... . ................ ..
1.01 per bu.
1.45 per bu.
25 bu.
15 bu.
0.60 per bu.
0.82 per bu.
30 bu.
40 bu.
crops, such as corn, grain sor- Oats ..................... .
0.77 per bu.
1.11 per bu.
25 bu.
.... ....
20 bu.
ghums, and small grains can Barley .... ........•.... .... .
1.21 per bu.
15 bu.
1.62 per bu.
Wheat .. ...... ..
12 bu.
Fruit .. ........... .... ...
also be grown, although gen- Sorghums for forage. ....... ..
1 ton
1.5 tons
erally yields are too low for Soil-building crops:
Hairy vetch ..... ....... . .
profitable production. CotAustrian winter peas . .... .
ton production is not considHubam and Madrid sweet
clovers ............... .
ered profitable on most farms
Adapted grasses ......... .
because yields are very low.
The sandy nature of the soil
makes it imperative that the crop rotation include a soil-building crop, and hairy vetch is the legume
best suited to this area. Much of the land that is too light or too steep for cultivation may be profitably
seeded to appropriate grasses for permanent pasture.
Black and Grand Prairies (Areas 13 and 14)
The soil and climatic conditions of the area are favorable for the production of such crops as
cotton, grain sorghums, corn, oats, and wheat. In recent years these crops have been very profitable
where suitable programs to control erosion and maintain fertility have been followed. The land also
is well adapted to many improved grasses, clovers, and other forage crops which are especially valuable
in crop rotation programs to reduce diseases, particularly cotton root rot, and to restore soil fertility.
If cotton and corn or cotton and grain sorghums are to be the principal crops, then the rotation should
make maximum use of winter legumes, such as Austrian
CROPS ADAPTED TO THE BLACK AND GRAND PRAIRIES
(AREAS 13 and 14)
winter peas and hairy vetch,
to maintain soil fertility. A
Estimated
Estimated yield
1943-47
1938-47
normal
Texas
per acre with
TUM
rotation of cotton and sweet
yield
lmproved manage.average
Crop
(arm price
ment practices
farm price
"'" ..:re
clovers has been effective in
Cotton lint ... .. ...... • ... .
1701ba.
$ 0.18 per lb.
300 lbs.
S 0.25 per lb.
controlling cotton root rot
0.02 per lb.
Cottonseed ............. .
2551bs.
0.08 per lb.
540Iba.
and has increased cotton
1.04 per bu.
Corn ..................... .
25 bu.
35 bu.
1.45 per bu.
Grain sorghums .....•......
20 bu.
0.91 per bu.
1.28 per bu.
33 bu.
yields as much as 100 percent.
Oats ..................... .
0.60 per bu.
31 bu.
40 bu.
0.82 per bu.
22 bu.
loll per bu.
0.77 per bu.
Barley ... ... .. ..... .
30 bu.
The use of fertilizers, includWheat ................... .
1.21 per bu.
15 bu.
1.62 per bn.
20 bu.
ing nitrogen and phosphate,
12.61 per cwt.
Sweet clover for seed ...... .
3501bs.
4001bs.
16.01l per cwt.
P eanuts (sandy areas only) ..
0.06 per lb.
5751ba.
0.08 per lb.
4501bs.
generally is recommended
Sorghums for forage ....... .
2.5 tons
3.0 tons
2.5 tons
Sudan grass ... ... .... ..... .
and is most effective when
3.0 tons
2.5 tons
Alfalfa ........... ....... ..
3.0 tons
applied with a legume or covSoil-building crops:
er crop. Usc of adapted hyHubam, Madrid, and Evergreen s\veet clovers . . .. . .
........
.. ... .. .....
. ... .... ....
brid seed corn will increase
Hairy vetch ............. .
Austrian winter peas ..... .
........
...... . .....
.. ........ ..
corn yields materially.
Adapted grasses . . .. ... .. .
.. . .....
............
.......... ..
Throughout the area there
.......
•••••••
•
••••••••••••
•
•••
0
•
••
•
•
••
are sections where the land is too rough or the soil too thin for profitable field crop production; these
sections would be more profitable if seeded to adapted pasture grasses and legumes.
Northeast Sandy Lands and Piney Woods (Areas 15 and 16)
Cotton was once king in this part of Texas, but with the exhaustion of virgin fertility and invasion of the boll weevil it has generally given way to other crops or to livestock production. Much of
the acreage formerly planted to cotton has been allowed to grow up in brush, trees, and native grasses.
12
MONTHLY BUSINESS REVIEW
Reforestation should be encouraged on the land best adapted to forests. Other land which is best
suited to permanent-type pastures can be very productive if fertilized and seeded to adapted pasture
grasses and legumes.
This area also is well adapted to the production of truck
crops, such as tomatoes and
watermelons, and to sweet
potatoes, fruits and a wide
variety of hay and pasture
crops, and these crops constitute the basis for a profitable
crop program. Some corn,
particularly hybrids, and
grain sorghums for feed
are profitable if properly fertilized. Yields can be maintained at relatively high levels if these crops follow a fertilized soil-building legume
or several years of a fertilized
hay or pasture crop. Vegetable and fruit production may
be very profitable, if dependable market outlets are assured.
CROPS ADAPTED TO THE NORTHEAST SANDY LANDS AND PINEY WOODS
(AREAS 15 and 16)
Estima.ted
norm.al
yield
per acre
CroP
Estimated yield
per acre with
improved)nanage-mont practices
.
1938-47
Texas
11143-47
T,IBO
.."...
aver~a
farm price
farm prle9
Hay and pasture crops: (These are also soil-building crops whcn properly fertilized)
Hairy vetch . . . . ... .. ..... .. . . ....
.. . .....
....... . ... .
. ......... . .
.... .. ..
.. ...... .. ..
.. .... .. .. ..
Kudzu . .... .. .. .... .... . ........
White Dutch clover. . . . . . .
. .. .....
... .. .......
. . . .. .. . . .. .
Hop clover.. ... .... .....
.. .. . . . . . . .. .... ... . . .. . ...... ..
Bur clover.......... . . . . . . . .. . . ..
.... ....
. . ... ... . . ..
. .. . ... .•...
Sudan grass. . . . . . . . . . . . . . .. . . . . . .
. .. .. ...
.... .... ....
.. ..........
Dixie Crimson clover .. .. .. .. .. . .. .
.. .. .. ..
.. .. .. .. .. ..
.. ........ ..
Bermuda grass . . . . . . . . . . . .. . . . . . .
.......•
.. .. .. .... ..
. .... . . . ... .
Singletary peas"......... . ... .. .. .
.. ......
... ..... ....
.. ....... . ..
Adapted grasses. . . . . . . . . . .. . . . . . .
........
.... .. .. ....
. ... . ... . . . .
5 tons S 2.55 per bu. t
1.89 per bu. t
Tomatoes. . ... . .. . . . . . ..... 3.75 tons
Watermelons.... . . . . . . .. .. .
6 tons
10 tons
400.00 per
285.00 per
1,000 malons
1,000 melons
Sweet potatoes .. . . . ....... .
2.18 per bu.
1.56 per bu.
75 bu.
150 bu.
400 Ibs.
500 lb •.
0.08 per lb.
0.06 per lb.
Peanuts . . . . .. ... .. ....... .
Peas, edible dry .. . . . . . . ... .
10 bu.
15 bu.
1.45 per bu.
1.04 per bu.
Corn (fertilized) . . . . ..... . . .
15 bu.
30 bu.
0.91 per bu.
Grain sorghums (fertilized) ..
30 bu.
1.62 per bu.
15 bu.
1501bs.
2501bs.
0.18 per lb.
0.25 per lb.
Cotton lint ....... . . . .... . .
0.03 per lb.
0.02 per lb.
Cottonseed . . .......... . .
2251bs.
3751bs.
s
• Livestock mWlt be removed when the blooms appear because the seeds are toz.ic.
t Season average pric::o. both early and late, for Cn:sh market.
Soil-building crops, such as legumes, should be included in a rotation program to replenish organic
matter and rebuild soil fertility on the major portion of the cropland. Because of the area's relatively
abundant rainfall, the light, well-drained character of most of the soils, and generally low level of
available pIant food in the soils, most crops are very responsive to applications of commercial fertilizer,
some yields having been doubled and trebled by proper application of fertilizer. In applying fertilizer,
farmers should folloVi closely the recommendations which are prepared annually by specialists at Texas
A. & M. College, copies of which can be obtained from local county agricultural agents.
Post Oak Area (Area 17)
CROPS ADAPTED TO THE POST OAK AREA
(AREA 17)
Estimatod
Donna!
Crop
Bottomland
Cotton lint . . . . . ....... . .
Cottonseed ..... .. . . .. .
Corn ....... . .. ... .. . . .. .
Grain sorghums .. . . .. . . . .
Oats . .. . . . ... . . . . ...... .
Alfalfa hay ............. .
Sorghums for forage . ... . .
Sudan grass .... ... . . .. . . .
Upland
Peanuts . ... . ...... . . . .. .
Corn (fertilized) ....... .. .
Grain sorghums (fertilized)
Oats . . . ..... . .. .. . . .. .. .
Sudan grass ..... . .. . ... . .
Sorghums for forage ..... .
Watermelons . .. . . . . .. .. . .
yield
per ....
Estimated yield
per acre with
improved rnanapment practices
200 Ibs.
360 Ibs.
25 bu.
20 bu.
30 bu.
2.0 tons
1.5 tons
1.5 tons
350 Ibs.
6301bs.
35 bu.
30 bu.
40 bu.
2.5 tons
2.0 tons
2.0 tons
400 Ibs.
15 bu.
15 bu.
20 bu.
1.0 tons
1.0 tons
5.0 tons
5001bs.
30 bu.
30 bu.
30 bu.
1.5 tons
1.5 tons
8.0 tons
Soil-building crops: (Bottomland nnd Upland)
Sweet clovers .. .. .. .. .. .. .. .. ..
.. .. ....
Willamette, common,
and hairy vetch.. .. .. .. ..... .
Dixie wonder peas. . . . . . . . . . .. . .
Dixie crimson clover .. "
" . .. . . .
Adapted grasses. . . .. .. . .. .. ... .
11143-47
T,UI
1938-47
T....
(arm price
r~:~~
.......
S 0.25 per
0.03 per
1,45 per
1.28 per
0.82 per
25.94 per
0.08
1.45
1.28
0.82
per
per
per
per
lb.
lb.
bu.
bu.
bu.
ton
S 0.18 per
0.02 per
1.04 per
0.91 per
0.60 per
19.32 per
lb.
lb.
bu.
bu.
bu.
ton
lb.
bu.
bu.
bu.
0.06 per
1.04 per
0.91 pcr
0.60 per
lb.
bu.
bu.
bu.
400.00 per
1,000 melons
285.00 per
1,000 melons
Crop production In this
area should generally be limited to the more fertile soils
found in the interior prairies
and along the river bottoms.
Cotton, corn, and alfalfa are
well suited to the fertile bottomlands, and peanuts are
adapted to the sandy upland.
The light, sandy nature of
the upland soils makes it imperative that crop rotation be
followed and that it include,
at least 1 year ill 3, a soilbuilding crop, such as sweet
clover, hairy vetch, Austrian
winter peas, or other green
manure crops. Even ill the
fertile river bottoms, crop
rotation and use of soil-buildmg crops pay big dividends.
l
MONTHLY BUSINESS REVIEW
13
Gulf Coast Prairie (Area 18)
Although cattle raiSIng predominates in this area, rice, cotton, vegetables, corn, and grain
sorghums can be grown profitably on certain soils. Production of rice is a specialized operation that
requires a large amount of operating capital and is profitable only if the most efficient methods are
used. fuce production should be confined to the soils having a tight subsoil accessible to ample supplies
of irrigation water. Providing for adequate irrigation is of paramount importance, and the cost of
irrigating is high, even when done on an area basis from one of the rivers. Other capital requirements
include large-scale machinery, such as self-propelled combines and large field equipment. These
factors tend to make small-scale operations generally unprofitable. Experimental data and actual
experitnce of farmers show that highest yields are obtained when a rotation of 1 year of rice and:; to 5
years of pasture is used. AfCROPS ADAPTED TO THE GULF COAST PRAIRIE
ter the rice crop is harvested,
(AREA 18)
the land should be limed (if
soil is acid), fertilized, and
1943-47
1938-47
F.stim.ted
Estimated yield
per &ere WIth
Te...
T....
normal
average
yield
improved manageaverage
seeded to adapted grasses.
rarm price
Crop
per acre
ment practices
Carm price
These pastures provide a
Cot ton lint . . ...........•..
215 lbs.
S 0.25 per lb.
S 0.18 per lb.
350lbs.
high-quality feed for cattle;
0.02 per lb.
450lbs.
0.03 per lb.
Cottonseed ............. .
500 lbs.
1.62 per bu.
2.15 per bu.
60 bu.
50 bu.
and when the sod is turned Rice ............... ... .. . ..
Corn . ..... ...............
18 bu.
30 bu.
1.45 per bu.
1.04 per bu.
0.91 per bu
1.28 per bu.
18 bu.
under, valuable plant food Grain sorghums ........ . . . .
30 bu.
25.94 per ton
19.32 per ton
Alfalfa (in river
3.0 tons
which will increase yields of Sweet sorghums .bottoms) . .. .. 2.5 tons
... .. .....
2.0 tons
3.0 tons
3.0 tons
rice is returned to the soil. Sudan grass ......... ... .. .. 2.0 tons
crops:
Recen t experiments have Soil-buildingindica and H ubam
Melitotus
annual sweet clovers ....
shown that rice yields also
Madrid and Evergreen
can be increased by applicabiennial sweet clovers ...
WiIIamette, common, and
tion of commercial fertilizer
hairy vetch .. ..... .... .
Dixie wonder peas . . ..... .
to the rice crop itself. NitroDixie crimson clover ..... .
gen and phosphate fertilizers
Adapted grasses ...... . .. .
have given the best results to
date. Local recommendations as to time, amount, and kind of fertilizer should be followed.
Development of a profitable crop program in this area probably should be built around (1)
specialized production of rice, with cattle; (2) vegetable production, with annual legumes; (3) cotton, corn, and grain sorghums, with soil-building legumes; or (4) forage crops-largely pasturesfor a livestock program. These general crop programs, with necessary modifications to meet local
conditions, arc likely to be most profitable.
MONTHLY BUSINESS REVIEW
14
Review of Business. Industrial. Agricultural. and Financial Conditions
DISTRICT SUMMARY
The open weather prevailing between late October and midDecember enabled farmers in most areas of the Eleventh
Federal Reserve District to complete harvesting operations
and to accelerate stalk destruction and fall plowing. In most
areas, however, plowing has been retarded because of the difficulties experienced in harvesting crops. Growth of small
grains has been retarded by the lack of moisture. Although
the condition of ranges and pastures declined during November, it is much better than a year ago. Livestock are going into
the winter in good to excellent condition.
The daily average production of crude petroleum in the
District, which had risen substantially from July to November, declined markedly in December due to the cutback of
production allowables in Texas. At mid-December the production rate was nearly 500,000 barrels smaller than in December
1948. A further moderate reduction in Texas allowables has
been announced for January 1950.
The value of construction contracts awarded in the District
showed only a moderate decline from October to November
and was about one-fifth larger than a year earlier. Residential
building, while 22 percent below the high level of the preceding 2 'months, exceeded the November 1948 volume by nearly
30 percent.
Sales of department stores in the District increased by a
smaller' amount than is usual from October to November and
were about 6 percent less than in November 1948. Late reports indicate that Christmas buying in December was very
good and may equal or exceed the previous year's dollar volume. Furniture store sales increased further in November and
were · substantially larger than the low volume in November
1948.
During the period between November 9 and December 14,
the deposits, loans, and inves.tments of weekly reporting member banks in leading cities of the District continued to increase.
The increase in deposits reflects chiefly the receipts from farm
marketings and the flow of funds to banks in the leading cities.
BUSINESS
Department store sales in the Eleventh Federal Reserve District in November showed a small increase over the generally
satisfactory volume of the previous month, but the increase
was noticeably less than had been evident from October to
November in other recent years. The dollar sales volume was
3 percent higher than in October, although 6 percent lower
than in November a year ago, which, it will be recalled, was
the first month in which the weakening in the postwar sales
boom became definitely noticeable.
The failure of November sales to show as large an increase
as in earlier years is not necessarily discouraging. While the
degree of strength in Christmas buying sometimes may presage the trend of sales in the months to come, the November
sales volume does not indicate any noticeable weakness. October sales in the District were unusually good, making a normal seasonal increase in November more difficult. Furthermore, the favorable reports for the first part of December may
reveal a continuation of the shift away from the early Christmas buying which was typical of the war years. Moreover, the
6-percent decline in November sales from year-earlier levels
was probably no greater than the decline in prices during the
past year, and, consequently, the physical volume of goods sold
may have been as high as, or higher than, a year ago. In this
connection, it is worth noting that prices of apparel and housefurnishings, two very important groups of department store
merchandise, declined approximately 7 percent in the past year,
as measured by the consumers' price index compiled by the
United States Bureau of Labor Statistics.
WHOLESALE AND RETAIL TRADE STATISTICS
:::::::==N.i~Percentage change in
Net Sales
Number
Nov. 1949 from
of
Retail trade:
Department stores:
Total 11 th Diat.. ...... .
Corpus Christi ..... , , ..
Dallas ..... . .......... .
Fort Worth ........... .
Houston .. .. . . . . . .. , . . .
San Antonio ••.•.• •....
Shreveport, La........ .
Otber cities .......... , .
Furniture stores:
reporting
Nov.
1948
f~ma
-
7
4
7
6
2
- 3
4
6
3
3
Dallas ...... . . . . . ... ..
Houst-on .............. .
10
62
6
19
6
12
- 13
-43
16
4
3
3
3
Port Arthur ...... .. . . .
San Antonio ... ... .... .
Shreveport, L:l ....... , .
(
Wichita Falls ... . . .... .
Wholesale trade:·
Automotive supplies . .. ,
Drugs and sundries . ... .
Dry goods .... . .. .. . . . .
Grocery (full-line wilole-ealers not sponsoring
groupa) ........... . .
Hardware ............ .
6
-6
I
-16
-'¥/
-2
7
-16
-3
- 18
-24
-3
(
-6
(
31
7
(
-4
4
-17
-2
-16
-21
-iii
-2
I
I
-7
-13
-9
-6
-I
-I
-7
-6
-25
-7
6
-2,1
6
-7
-24
2
19
-16
4
2
11
Wines and liq~ors. _ ... .
Wiring suppIiea. CODstruction mat.erials
-5
-,
3
Tobacco products ..... .
6
9
6
I
10
12
-6
-I
-,
-(
- I
42
6
3
lndustriaisupplies ..
Machinery eqwp. and
.upplies except e1ee ... .
4
10
- 3
-5
- 3
-9
- 5
4
7
2
-6
46
Total11tb Dist ........ .
1
-7
11
-
-
-6
-19
6
- II
6
3
18
Stoekat
Nov. 1949 from
Nov.
Oct.
1948
1949
11 mo. 1949
compo with
11 mo. 1948
3
6
-
48
Oct.
1949
33
-5
ii
3
-33
distributors. __ .
-21
-9
·Preliminary data. Compiled by United Statce Bureau of CeDBUB.
Indicates change of less than olle-haif of 1 percen~.
StockJ a~ end of moo.tha
I
INDEXES OF DEPARTMENT STORE SALES A.'1D STOCKS
Daily average sales-(1935--3bl00)
Unadjusted·
Nov.
1949
11th Dist. .. .
Dallas. _ . ...
Houston .... _
442
405
483
Oct.
1949
4H
3n
417
Sept.
1949
404
386
4!1
Nov.
1948
412r
432
644r
Nov.
1949
362
336
400
Adjusted
Oct.
1949
398
338
379
Sept.
1949
378
347
421
Nov.
1948
387r
367
460r
STOCKS-(l93s-3lblOO)
UnadjustedOe~
Sept.
Nov.
1949
1949
1949
384
367
llIb D~t .... 405
-Unadjusted for seasonai variatioo.
Nov.
1948
429r
Nov.
1949
369
Adj"'ted
Oct.
Sept.
1949
1949
370
359
r-Revised.
Nov.
1948
390r
Christmas buying in November produced few new developments in the recent pattern of sales of individual departments
as compared with year-earlier levels. Sales of major appliances,
up 20 percent over November 1948, continued to make one
of the brightest showings of aoy of the departments. Lifted by
an extremely strong demand for television sets, the radio-phonograph department in November registered sales gains over last
year of 25 percent, following a 35 -percent year-to-year increase
in October. On the other hand, sales of women's and misses'
coats, suits, and dresses continued to run substantially below the
levels of a year ago. Moreover, men's clothing sales, which declined 11 percent, ran counter to their predominantly favorable
showing of the past 6 months. Basement store sales, which during the first 6 months of the year showed consistent gains, feU
markedly below sales of November a year ago.
The pattern of a high volume of credi t sales and of a slowing
in collections continued in November. Credit sales comprised
69 percent of total sales, the same proportion as the near-postwar high level of October, representing tbe highest credlt-tototal sales ratio for any November since 1940. Collections on
15
MONTHLY BUSINESS REVIEW
instalment accounts continued the noticeably declining tendency of the past 6 months, amounting to only 15 percent of
the outstanding accounts, as compared with 16 percent in the
preceding month and 19 percent in November 1948. The ratio
of collections to regular accounts, however, showing little
change during 1949, averaged 52 percent. U'nlike instalment
collections, regular-account collections in relation to accounts
outstanding continued to run substantially better than prewar
levels, although down appreciably from the wartime high.
Texas and New Mexico and a total of 1,748,223 bales-including 335,479 bales in process--in the United States, compared
with 500,756 and 3,389,790 bales, respectively, as of December
16, 1948. Ginnings in Texas prior to December 1 totaled 4,864,000 running bales, compared with 2,916,000 bales for the comparable period in 1948. An unprecedented number of 1,660,000
bales was ginned during the month of November.
Department store stocks in November, continuing the upward trend of the previous 3 months, showed about a normal
seasonal rise. At the end of November, stocks were only 4 percent less than on the same date of 1948, which is the smallest
year-to-year decline since last March. Partially accounting for
this narrowing gap were the tightening inventory controls at
this time a year ago, which resulted in a less-than-seasonal increase in stocks during November 1948. In view of price declines, aggregate stocks arc probably as large as, or larger than,
a year earlier, although differences in the stock levels exist
among various items. Consumer durable goods, which have been
selling well during the past several months, have lower stocks,
while the stocks of women's coats and dresses, sales of which
have been off substantially throughout the year, are higher.
With the delivery of Christmas merchandise, orders outstanding at the end of November were down 8 percent from a month
earlier. In relation to year-earlier levels, the 9-percent decline in
orders outstanding was the smallest for any month since July
1948.
Yield per harvested acre
Furniture stores in the District reported a rise in sales of 5
percent in November, following an II-percent increase in October which initiated the delayed fall seasonal upswing in 1949.
November sales were appreciably higher than the depressed level
of November a year ago but fell noticeably below the unusually
high volume of November 1947. Both cash sales and credit sales
were up. While the ratio of credit sales to total sales has shown
little change since last April, running around 90 percent, it waS
6 percentage points higher than in November 1948. Furniture
store stocks rose 5 percent for the third successive monthly increase. Nevertheless, a continued conservative inventory policy
is reflected by the 14-percent decline in stocks from year-earlier
levels.
Accounts receivable showed a small increase for the eighth
consecutive month to reach a new peak 24 percent higher than
in November a year earlier. On the other hand, collections were
practically unchanged from October to November and were 2
percent below the November 1948 level, despite the large increase in accounts receivable during the past year.
TEXAS COTION BY CROP REPORTING DISTRICTS
(pound.)
Production, 600 lb.
gross weight bales
(thousands)
lU4U
indicated
1948
279
139
150
132
160
164
494
81
203
282
1949
indicated
Dec. 1
301
282
247
185
216
205
551
206
288
284
269
373
152
3.1.1
6.25
264
170
176
Sut• ....... .... ... . . .. ..
SOURCE: United States Department of Aariculture.
2,722
3,153
5,900
Average
Crop reporting districts
1938-47
I-N Northern High Plains . ....
179
1-S Southern Kith Plains......
192
158
2 Red Bed Plaw . . .........
Western Cross Timbers, ...
118
3
158
4 Black and Grand Prairies . .
East Texas Timbered Plains.
143
5
483
6 'I'rans--Pec09 ..... . .... ... .
126
7 Edwards Plateau . . . .. . ...
168
8 Southern Texas Prairies . ..
213
Coastal Prairies . ..... . .. .
9
10 '" IIJ.A South 'r.... Plains
and Lower Rio Grande
212
Valley" . ............
Average
1938-47
54
447
493
39
714
293
79
39
292
120
1948
115
558
496
22
773
226
1411
20
278
170
Dec. l
210
1,500
1,130
50
1,085
340
195
75
495
195
The estimate of the United States cotton crop on December
1 was 16,034,000 bales, an increase of 510,000 bales over the
November 1 figure. The improvement was general throughout
the Cotton Belt, with only New Mexico showing a slight decline and estimates for Virginia and California remaining unchanged. Yield per acre, estimated at 285.8 pounds, compares
with the record of 312.6 pounds in 1948. Total ginnings in the
United States prior to December 1 were 13,976,000 bales, compared with 12,744,000 bales as of the some date in 1948.
NORTHERN
JiIGH PLAINS
I-N
AGRICULTURE
Nearly 5 weeks of uninterrupted open weather during November and early December permitted rapid completion of harvesting operations, and by mid-December most of the District's
record cotton crop, valued at more than $1,000,000,000, had
been gathered. In the High Plains of 'fexas, gins operated at
capacity 24 hours a day, and some seed cotton was stacked in
fields as harvest of a bumper cotton crop neared completion. As
of December 1, 1949, the Texas cotton crop was estimated at
a record 5,900,000 bales and the yield per acre at 264 pounds
of lint-the highest yield since 1894. Compared with last year
and the 10-year (1938-47) average, all sections of the State
showed increases in per acre yield and total production. This is
the fifth cotton crop of 5,000,00 0 bales or more in the State's
history. Lower grades and shorter staples of cotton continue to
sell at prices above the loan rate, and movement into the government loan has been slower than a year ago. As of December
15, 1949, only 432,921 bales had been accepted for the loan in
CROP REPORTING
DISTRICTS OF TEXAS
Moisture supplies in the major wheat-producing areas of the
District were depleted rapidly during the open weather in November and early December, resulting In some deterioration of
the wheat crop, particularly in western counties of the Texas
Panhandle. Light, general rains I. ter in December checked the
deterioration but were not sufficient to renew growth for additional pasture. Outside the Panhandle small grains are making
16
MONTHLY BUSINESS REVIEW
satisfactory growth, although additional rains would be beneficial. Seeding of the south Texas flax crop is making rapid
progress under favorable conditions.
of the lambs being finished on wheat pasture this season is larger
than in 1948, with this type of feeding particularly heavy in
Kansas, where about 500,000 lambs are reported to be on pasture.
Throughout the commercial vegetable areas conditions conTotal receipts. of livestock at the Fort Worth and San Antinue favorable, and all mature crops are moving to market in
volume. Good rains the second week in December improved tonio markets during November were 2 percent above October
materially the crop prospects in the Coastal Bend section and 1949 but 33 percent below November 1948. The seasonal inbrought relief to the Raymondville area, where serious moisture crease over October was due to a 24-percent increase in calves
deficiencies had threatened the onion crop. Harvest of citrus and a 39-percent increase in hogs, which more than offset defruit continues active, with quality and size of grapefruit ex- clines of 28 percent and 6 percent in sheep and cattle, respecceptionally good. The very small crop of grapefruit and a weak tively. All classes of livestock shared in the decline from a year
demand for oranges are reducing the movement of these citrus ago, with sheep registering a 61-percent decline.
fruits to market from Texas, with total volume of marketings.
lJVESTOCK RECEIPTS
currently less than one-half the volume of a year ago.
(Number)
Fort Worth market
CASH RECEIPTS FROM FARM MARKETINGS
(In thousands of dollars)
October HH9
Crops Livestock Total
State
Azizona ...•.. ••... , $ 14.923 $ 6,348 $ 21.271
32,882
Louislana .•.• ' •....
9,223
42,105
11,643
New Mexico ...... .
31,199
42.842
33,078
Oklahoma .....•.•.
63,970
30,892
Texas ....... ," ... 192,527
74,212
266,739
Total ..........• $285,053
October
1948
Total
$ 16,713
60,787
50,151
118,583
276,482
$151,874 $436,927
$522,716
SOURCE: United States Department of Agriculture.
Cwnulative receipt-a
-Jan.l to Oct. 31_
1949
1948
$ 161,246 I 168,477
244,380
255,780
136,494
132,824
501,675
557,100
1,544,335
1,571,S49
$2,588,130
CI=
Cattle ... . ... . , ..........
Calves ..•. ... . .• ••. . ...••
,.
H""' ... .. ..
Sheep.
.... ..... .
............... ...
Class
Cattle, calves, sheep, and lambs generally are in good to excellent condition as they go into the winter, although not making the rapid gains registered during the fall months. Ewes with
fall lambs are showing some shrinkage. Ranchmen are holding
back top heifers and ewe lambs for replacements, and the demand for stocker cows, spring heifers, and lambs is very strong
as breeding herds and flocks are being expanded. The condition
of cattle on December 1 was reported at 87 percent, 1 point
below November land 5 points above the lO-year (1938-47)
average for December 1. The condition of sheep as of December 1 was reported at 87 percent, compared with 89 percent on
November 1 and the 10-year average of83 percent.
Abundant feed supplies and favorable weather for pastures
in most areas encouraged cattle and lamb feeding operations.
The volume of cattle feeding in the United States was estimated
by the Bureau of Agricultural Economics on December 1,1949,
to be about the same as, or slightly larger than, a year earlier.
The total July-November movement of feeder cattle into the
Corn Belt was a record, although the movement during November was substantially lower than the very heavy volume during
September and October. The greatly reduced numbers of sheep
and lambs throughout the country have restricted the number
available for feeding, and the volume of lamb feeding this season is expected to be smaller than a year ago. The proportion
46,30i
62.950
33.16'
Nov.
1948
69.108
64.066
86.996
87.324
Ootober
1949
6.\,417
34.831
46.008
43.069
San Antonio market
Nov.
1949
34,886
24.369
8.784
21.894
TOP LIVESTOCK PJUCES
(DoUars per hundredweight)
Fort Worth market
$2,689,030
Ranges and pastures continue to provide an adequate supply
of cured feed throughout most of the District, but wheat pastures have failed to provide as much feed as had been anticipated. As a result, the demand for stockers in northwest Texas
has eased considerably, and some cattle are being marketed. In
other areas small grains, rescue grass, and clovers responded to
light rains during mid-December and are furnishing adequate
feed in central, southern, and eastern Texas counties. Hay,
grains, and roughage supplies for winter supplemental feeding
are adequate to abundant in all areas. The condition of all
ranges was reported at 84 percent on December 1, a decline of
5 points during November or 3 points more than the average
decline for this season of the year. However, compared with a
year ago, ranges and pastures are in far better condition. The
abundant rains throughout most of 1949 and generally reduced
stocking. rates have permitted rapid recovery of native grasses.
Nov.
1949
67.720
~~~~~t!!~ .:~:::
Slaughter cows ... . •..
Slaughter heifers and
yearlings . .. ,_ ....
Bla.ureter calves ....
Stoc er calve.<! ........
Slaughter lambs . . ....
Hogs ..
............ ....
Nov.
1948
38.7H
34.66'
7.462
62.267
Oetoher
1949
33,281
22.178
6,677
33.'"
San Antonio market
Nov.
Nov.
1948
$31.00
25 .50
21.00
October
1949
$27.00
22.25
17.00
1949
$21.60
1948
$27 .50
17.00
20:00
17.00
30.00
26 .00
26 .50
25 .00
26 .00
27.00
25.00
24 .50
23 .50
20 .25
25.00
23.25
23.50
22.50
17.50
25.00
25.25
26.00
21.60
25.00
20.50
22.50
23.00
22.00
20.25
Nov.
Nov.
1949
128.00
23.00
17.50
28 .00
24.50
24 .50
23 . 75
17.50
October
1949
121.50
Prices received by Texas farmers as of November 15 averaged about 2 percent above those at mid-October, according to
the Bureau of Agricultural Economics. The increase of 6 points
in the Texas price index halted a declining trend evident since
March 1949. The advance in the index for Texas, which was in
contrast with a slight decline for the United States, was due
primarily to substantial price increases for early season truck
crops and citrus fruits. Grains, oil-bearing crops, dairy products,
and poultry also made slight advances, while cotton lint, sweet
potatoes, cow peas, hogs, and eggs declined from the mid-October level.
Reports from spot ma rkets since mid-November indicate
that this generally upward trend has continued to mid-December, with prices for cotton, wheat, grain sorghums, oats, corn,
and slaughter calves showing increases, while only hog and
slaughter lamb prices declined appreciably.
FINANCE
Total loans and loans for commercial, industrial, and agricultural purposes at selected member banks in leading cities of the
District increased during the 5-week period ended December
14, with advances being reported for each week of the period.
Although minor fluctuations occurred in real-estate loans, loans
for the purpose of carrying securities, and in the category "all
other" loans, the increase in ·commercial, industrial, and agricultural loans amounting to about $48,200,000 accounted for
all of the increase in total loans. In previous issues of this Review attention has been called to the continuous expansion in
the volume of loans for business, industrial, and agricultural
purposes since mid-August. To some extent, that expansion can
be explained by an increase in business purchases to readjust inventory positions and by seasonal developments with respect
to financing agricultural production and general merchandis-
17
MONTHLY BUSINESS REVIEW
ing stocks. If the usual seasonal pattern is followed with respect
to commercial, industrial, and agricultural loans at selected
member banks in these leading cities, the expansion may be
expected to come to a temporary end within a few weeks and
be replaced by a gradual decline as businesses tend to liquidate
their indebtedness.
Investments in United States Government obligations at these
selected member banks rose between November 9 and December 14 from $1,228,000,000 to $1,247,0 00,000 as holdings of
Treasury bills increased $30,000,000 and holdings of Treasury
notes rose by $1,450,000. Partially offsetting declines were reported for certificates of indebtedness and Government bonds.
This net increase in investments, together with the steady increase in the volume of loans, testifies to the comparatively
easy position of these banks which has enabled them not only
to meet the rising loan demand but also to add to their investment portfolios.
country banks. Gross demand deposits and time deposits as reported during November, however, were about $74,000,000
and $43,000,000 larger, respectively, than the amounts reported
during the same month in 1948. It will be recalled that during
the first half of 1949 readjustments in business activity resulted
in a gradually declining trend which was reflected in a decline
in deposits at the District's member banks. During the second
half of the year, however, the recovery in business activity and
the significance of agriculture as an income producer in this
District were of more than sufficient strength to regain the
losses of the first 6 months, with the consequence that indications at present point toward a somewhat higher total of deposits
for the District's member banks at the end of 1949 than was reported a year earlier.
GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
EJeventh Federal Reserve District
(Averages of daily figurea. In thowandB of dollarn)
Combined total
A substantial increase in demand deposits, exclusive of Government and interbank deposits, amounting to about $80,312,000 was reported for the 5-week period and raised the total of
this class of deposits to about $2,276,000,000. Other major
categories of deposits, such as interbank demand deposits and
time deposits, also rose during the period, while United States
Government deposits showed only a very minor decline.
On December 14 most of the major asset and liability accounts of the selected weekly reporting member banks in this
District were at or near peak levels for the year. For instance,
total resources of these banks amounted to $3,712,404,000, or
about $147,500,000 more than the comparable figure for last
year, as loans, total investments, and balances with domestic
banks showed substantial increases. The largest decline during
the period occurred in the member bank reserves with the Federal Reserve Bank and was, of course, the consequence of the
successive reductions in reserve requirements which occurred
during the year. In fact, it was largely because of these reductions in reserve requirements that the banks were able to increase
their investments in short-term Government obligations at a
time when loan demand was expanding.
CONDITION STATISTICS OF WEEKLY REPORTING MEMBER BANKS
[N LEADING CITIES - Eleventh Federal Reserve District
(In
thousands of dollars)
Dec. 14.
Dec. 15,
Nov. 9,
Item
1949
1948
1949
Total loans and investments. . .
. ............... $2,,545,219 $2,336.438 $2,479.392
Tota.lloans-nett · . . .
1,156,714
1,115.528
1.1 1l;155
Totalloans-gr'068........... ..................
1,1fi7,777
1.121.849
1.120,960
Commercial, industrial, and a~icliltura.lloans. .
810,56 1
789.214
771,347
Loons to brokers and dealers In securities..... ...
6,658
6.754
6,999
Other loans for purcha.sing or carrying securitiel! .
46,032
57.972
48,503
Real--t'l!ltate loans............. . ... .... ..
90,486
87,732
88,277
Loons to banb.. .. .. .. .. .. .. . . . . . . .. ..
• 79
86
69
All other loan!..... . . ... ..............
204,061
181,091
201'1,765
Total investment8. . .. . ... .... . . . ......
1,377,442
1,214,589
1,358,432
U. 8. Treasury bills.......................
141 , 132
64,047
11 l,OSR
U. S. Treasury certificates of indebtedness.....
347,21)9
244,079
348,774
U. S. Treasury notes ..... , ...... ..... ... . ...
45,452
66,507
44,001
U. S. Government bonds (inc. gtd. obligations). . .
713,503
719,187
724,180
Other securities... . ........................ . . .
130,056
120,769
130,389
Reserves with Federal Reserve Bank .......• , ... ... .
472.558
571 ,568
44f'-7fi4
Balances with domestic banks . . ,.............. . ....
366,029
329,501
311,024
Demand derosits-adjusted·........................ 2,029,200
2,015.334
l,Q46,248
Time deposlts except Government .•....... '. . •. . . .•
44 6,315
404.032r
432,331
United States Governmellt deposits. . . . . . . . . . . . . . . . .
47,336
33,Z09r
49.263
Interbank demand deposits. ............
717,643
650,038
655,534
Borrowings from Federal Reserve Bank. .
0
0
0
• Includes all dem3nd deplJSit.'1 other thall interbank aud United St.at-::s Government . Ie5!!
cash items reported 9..'1 on hand or in proce$.'1 of ool!retion.
t After deductionsf(J[ reserves and unallocated charg&-DfTs.
r
Revised.
Gross demand deposits of all member banks in the District
followed a similar trend during November to that which was
reported by the selected banks in leading cities, although time
deposits at the District's member banks declined during the
month, with decreases occurring at the Reserve city banks and
Date
No'o'runbcr 1947
November 1948.
July 1949 ..
August 1949 ...
September 1949 .
October 1949 . .. . . . .
November 1949 .....
G,,,,,
demand
$.\.286.063
6.407.874
4.977.743
5.020.379
5.146.942
6.278.671
6.482.103
Reserve city banks
G,08S
Time
$543.685
594.125
629,655
635.37 1
648.045
652.043
636.996
Country banks
G,oo<
Time
1337.324
379.900
402.930
410,782
421.452
421 .8 11
408.479
demand
12.524.890
2.584.489
2.417.180
2.443.350
2.503.649
2.573.396
2.666.217
demand
$2,761,173
2,823.385
2.559.963
2,577.029
2.643.393
2.705.275
2.815.886
Time
1206.361
214.220
226.725
224.589
226.593
230.232
228.517
SAVINGS DEPOSITS
November 30. 1940
Number of Number of
Percentage change in
eavings deposits from
saving:'!
depoaitors
Amount of
8tl.villg5
deposits
43.427
S 24,901.517
-0.2
-0.8
6,077.904
22.358,761
35.4IW,972
21.142.996
74.336.600
3,318.872
4.500,574
43.741.377
10.174.399
4.511.795
54.833,773
-1.6
-0.6
0.8
3.2
-1.9
1.9
-7.7
-5.9
-3.3
2.4
-0.3
1.6
-0 .5
-0.3
0.3
0
0.2
-0.1
Port Arthur ..•.......••
San Antonio ......... . .
Waco ...•.•.•.....•..•
Wichita. Falls ..•• . ••....
All other . .•..•••.......••
4
8
2
2
5
3
3
55
12.003
142,475
31,784
43997
22.276
94.776
1.851
5,800
40.648
9.825
7.614
64.520
Total ....................
102
520.996
$382.936,255
0.2
my
Louis.i3na.:
Snreveport .....
Texas:
Beaumont .. .. .........
Dalias ........ . ... . . ...
El Paso ....... . ... . . ..
Fort Worth ........... .
Galve.ston ... . . . • . . . . . . .
Houston ...........•.•.
Lubbock ...............
reporting
banks
3
8
2
4
77,552,715
Nov. 30,
1948
Oct.31,
1949
1.8
-0.3
0.3
0.9
-2 . 3
0.2
-0.04
Relatively little change was reported in bank debits of reporting banks in 24 cities in the District and in the annual rate
of turnover of deposits of these hanks during November. The
change in bank debits was negligible as contrasted with the figures reported for October and amounted only to a decline of 2
percent from figures of November a year ago. Likewise, the
annual rate of turnover during November was slightly less
than in the preceding month-12.5 as compared with 12.7but more significantly lower than the 13.1 figure reported in
November a year ago. Largest increases in bank debits were
reported from Lubbock and from Roswell, New Mexico; Galveston reported the extreme decline of approximately 14 percent.
Principal changes in the condition of the Federal Reserve
Bank of Dallas during the month ended December 15 include
a slight decline in gold certificate reserves, an increase of about
$16,000,000 in holdings of United States Government securities and total earning assets, and an increase in member bank
reserve deposits, reflecting the growth of demand deposits at the
District's member banks. Notes of this bank in actual circulation continued to rise in response to strong seasonal requirements and on December 15 totaled $645,591,000, about $8,000,000 more than the amount reported outstanding on November 15 and approximately $17,000,000 above the figure
reported on the comparable date in December 1948.
MONTHLY BUSINESS REVIEW
18
CRUDE OIL PRODUCTION
DANK DEBITS, END-OF-MONTH DEPOSITS, AND ANNUAL HATE OF TURNOVER
OF DEPOSITS
(Amount.! in thousands of do11an)
City
---Debits +- - Pcta:.ebange over End-of-montb
November Nov. Oct.
deposita·
1949
1948
1949
Arisona:
Tucson. ....... .. . . S 49,862
- 18
-2
39,830
127,794
8
- 11
Roawell •... . . . . . .•.
Texas:
11,177
37,914
Abilene . ••..••. . . . •
98,517
Amarillo ..... . .. . ..
109,578
AU3tin . .. . .. . .. . ...
98,928
Beaumont .. . . . . . . .
74,134
Corpus Christi . • . ..
12,897
Corsican..... . . . ....
Dallas .... . . ...... 1,038.690
141,776
El Paso . . . .. .. .....
Fort Worth .. . . . , ..
Galveston . . . " . ••••
Houston .......... .
Laredo .. . .........
Lubbock .. .. .. .. .. .
Port Arthur. . .....
Ban Angelo .•••••••
Sao Antonio .......
Texatkanat· · .. , , . ,
~.: ..'::: :::::::::
Wichita Falls ... ", ,
329,431
86,036
1,047,407
15,209
91 .243
32.171
33.244
246,831
1 ~, 386
42,662
~6 .003
66,691
Nov.
1949
1948
1949
77,483
7.8
8,3
8 .0
42,32 1
171,251
,
-6
-3
Louisiana:
Monroe ..• •. ... . ••
Sllreveport. ' .' . . . ..
New Mexico:
Annual rate of turnover
Nov.
11.2
9.1
11. 0
10.3
11 . 6
9 .6
Nov_ 30, 1949
OC\.
17
4
6
3
- 8
-2
16
- 4
-
2
3
-3
- 3
-3
15
- 6
7
6
- 6
4
6
- t
20,022
10.8
10. 2
9. 7
-1
- 1
- 3
6
-7
-1
- 2
-1
-1
-14
2
3
30
39,172
93,062
107,009
91,662
80,216
20,793
796,065
120,445
308,639
94,101
959,559
21,710
68.512
39.771
40,350
320,978
23,934
50,530
70,560
83,981
11. 9
12 .8
11.9
12 .7
11. 2
7. 8
15 . 7
14 .3
12. 8
8 .3
13.3
8. 5
16. 3
9 .8
10 .0
9.2
7.9
10.2
9.6
8.2
10.3
13 . 2
12 .6
12. 1
11.3
6.5
17. 4
14. 6
14.0
8 .3
1'-3
8 .5
14.0
10 . 4
9.2
8 .8
8 .5
9. 1
9 .5
8.3
12 .2
13 . 4
12 .4
12 .2
12. 1
7. 8
16. 2
14.6
13. 1
9. 6
13 .3
8 .6
13. 2
10. 8
10. 2
9. 8
8. 6
10.0
8.9
8 .0
-6
- t
-
4
5
3
8
2
(Barrels)
November 1949
12.7
12. 6
13 . 1
$3 ,742, 11~
Total-24 citie! . . , .. , 13.8715.878 - 2 - t
lndicatea change of lesa than oue-half of 1 r:ent.
Debita to duit IIoOOOWl ts except intcrbau accounts .
• Demand an time deposits lit the end of the month include certified and officers' checo
outltandiug but oxclude deposita to the cr~i t of banks.
.
.
; Tbis 6 ~ura includes onl,v one bank In Texarkana; Teus. Total debltl! for aU b&nb m
Tenrkana, en.s-ArkaDBM, moludin& two banks located in the Eighth District, amounted to
t
Total
Area
production
Dailyavg.
production
Iocrease or decrease in daily
average product ion from
Nov. 1948
Oclobcr 1949
Texas:
District
I South Centtal .. _.....
2 Middle Gulf . . •.••• . ..
818,300
3,994.200
3 UpperGulf. . .. . . . . . .. 12,474,500
6,158, 750
4 Lower Gulf.. .. .. . ....
1,125,400
6 East Central . . ..... . .
10,978,300
6 Northeast . . . . ..•.....
8,104,250
East Tema . . . . . . .. .
2.874,060
Other fields . .. , .. ...
1.892,760
7b North Central. . . . . . ..
1.648,060
7c West Central. . .. . . .. .
19,187,300
8 \Ve.st. ........ "" ...
4.307,UO
9 North . ........... .. .
2.768.950
10 Panhandle .. . . ...... .
66,353,750
T otal Tuaa .. .. ..... . . ,. , ..
3,919.700
New Mexico •. " .. . • . . •••• . • .
3,767,500
Nort.h Loui.m.na .. . ... . .......
Total Eleventh District .. .. .. n ,040.060
Outside Eleventh District . . .. .. 82,177,200
United States . . ..... . ..... . . . 156,218,150
27,277
133,140
416,817
206,292
37 , ~ 1 3
365.942
270.141
95,801
03 ,002
64 .035
639 ,577
143,575
92,298
2,178, 458
130,657
1U,583
2,434,698
2,730,240
6,173,938
-388
~4.835
- 88.413
~ 9 .478
- 14.282
-55,973
-26,874
-20,099
4,892
6,040
-107,023
955
- 171)
5,11 9
14,802
7,789
1,879
22,620
17,618
4,974
39
3,140
5.1,346
4,077
3,578
177
-344,927
114,818
5,45.1
2,923
123,196
12,334
135,830
-3,578
11,793
-{!36,712
- 120,005
-456,71 7
SOURCE: Estimated from American Petroleum Institute weekly reports.
Daily average production of crude petroleum in the United
States at mid-December amounted to 4,934,000 barrels, representing decreases of 240 ,00 0 barrels from the November rate
and nearly 700 ,000 barrels from the rate in December 1948.
In recent months crude oil runs to refinery stills have been at
a level about 300,000 barrels daily below the level at this season in 1948.
'25,812.
CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS
(In thouaodl of dollars)
Item
TotaJ gold certificate reeervea , . . .. . . , . . . . ••. •. .. . . •
Di.acoWlta for member banb . . . . .. • . • •• . . • . .•• •• •. •
b7.~;=::nf~~~·.·.::::::: : :: : : :: : : :: : : : :
Total earnina: assets .. ........... . . . . ......... ... . .
Member bank reserve deposits .. . ........ ... ....... .
Federal Reserve DOtes in adWLl circulation .. . .. . . . . . .
RAILROAD COMM ISSION OF TE XAS
Dee. 15,
1949
' 691,163
o
2,4&8
785.904
788,372
813,273
645,591
Dec_16,
1948
, 640,148
o
6,667
1,042,036
1,048,703
967,657
628,738
OIL AND GAS DISTRICTS
Nov. Ill;
1949
'701,908
20
2,926
7611,666
772,6 12
793 ,064
837,414
On December 5 the Secretary of the Treasury announced
that holders of the 2-percent Treasury bonds of 1949-51, the
l-percent
3 !is-percent Treasury bonds of 1949-52, and the 2 Y
Treasury bonds of 1949-53-all called for redemption on December 15-would be offered a 1 Ya -percent Treasury note maturing in 4 Y4 years in exchange. It was also announced that the
holders of Treasury certificates of indebtedness maturing December 15 would be offered this same exchange privilege. On
December 15 the Secretary of the Treasury reported that total
exchanges of these issues amounted to $4,672,101,000, as compared with total maturities of $4,894,000,000. The Secretary
of the Treasury also announced early in December that holders
of the 1 Y4-percent certificates of indebtedness maturing on
January I, 19 50, would be offered a 1 Y8-percent 12-month certificate in exchange.
L
SOUTH (;(NrR&L
2.. .. IOOl.E GUL"
J, U PP[R 6 UL F
4 . LOWER GULF
5. EI,5f CENTRAL
t . tiOATHE"'T
7 .. NORT H c.l l'fT fI &'/"
., ~
wtST CEHTRAL
a.
W£ST
9 . NORTH
10. PAtlHAHOI.!:
INDUSTRY
The national demand for petroleum products has been increasing gradually since the midyear low, During the 5 weeks ended
D ecember 10, the demand for the four leading petroleum products was 326,000 barrels daily above the level in the corresponding period a year earlier and about 900,000 barrels per day above
the June low, reflecting the recent sharp increase in the demand
for kerosene and fuel oils and the sustained demand for gasoline,
While the temperatures in the heating oil area during the first
10 days of December averaged much colder this season than
last , the warmer weather earlier this fall accounts for the fact
that, in terms of degree-days, t he 1949-50 season through D ecember 10 averaged nearly 4 percent warmer than the 1948-49
season.
Crude petroleum production in the Eleventh District increased by 123 ,000 barrels daily in November, reaching a rate
of 2,435,000 barrels per day. Due to the sharp reduction in
Texas allowables, District production feB to around 2,270,000
barrels per day at mid-December, at which level it was still
220,000 barrels daily higher t han the 1949 low point reached
in July but 490,000 barrels daily below the near-record rate in
December 1948. The decrease in t his D istrict from November
1949 and from December 1948 accounted for the major propor- ,
tion of the similar changes in pet roleum production in the Nation, The reduction of T exas allowable production for January
by 83 ,000 barrels per day is about half offset by production
allowed from new wells, so that January production in the District should decline only moderately,
•
~
19
MONTHLY BUSINESS REVIEW
Stocks of crude oil, after declining for several months, increased during November by 5,057,00 0 barrels in the Eleventh
District and 6,420,000 barrels in the Nation, these increases
amounting, respectively, to 4 percent and 3 percent. Stocks of
petroleum products have been changing in line with seasonal
patterns, with gasoline stocks beginning to move upward from
their seasonal low registered in October and kerosene and gas
and distillate fu el oil stocks commencing t o decline from their
seasonal high at the end of October. Residual fuel oil stocks,
after changing but little for several months, declined by 5 percent in November. The result of these diverse movements was
a relatively small change in the total stocks of the four major
products during November.
A s a result of the colder weather during early December, as
well as the reduction of the output, prices of both home heating oil and residual fuel oil have firmed.
BUILDI NG PERMITS
November 1949
Number Vaiuatio[l
City
Percentage
Percentage change Ja n. l toNov.aO, 1949 chaDlJo
valuation from
valuatlon
Nov. 1948 Oct. UI49 ~umber Valuation from 1948
LQuisiana:
337 $
Shreveport ..
T exas:
Abilene . . ...
Amarillo .. . .
Austin ......
Beanmont . . .. , .
g~l~ ~~~~~i: : :
EI Paso .... ... . .
Fort Worth .. . ..
Galveston . . .. . . .
Houston . . ... , , .
Lubbock .. .... "
Port Arthur .. . , .
San Antonio .. • .
Waco .. .. •.. . . .
Wichita Falls ... .
130
209
252
359
298
1,647
316
782
118
535
240
1811
2,027
210
96
992,147
54
592,00.1
106
1,093 ,211
113
1,686,905
105
1,069,938
20
1,054,387 -14
7,833,621 - 4
1,939 ,515
356
2,956,049
9
175,110
28
4,325,137 - 44
134
3,787,947
910,429
170
4,904,989
85
1,131,085
119
301,330
37
TotaL ......... . 7,745 ' 34,763,805
21
-
3,8 14 $ 20,Iltl5,969 -
38
13
22
27
1,233
2,930
2,6i8
3,924
3,142
16,0 14
3,177
7,377
1,7 19
6,646
2,305
1,930
14,203
1,940
1,044
6
52
58
-27
-
53
42
60
204
295
31
4
3
-
I
21
6,083, 795
26
15,348,825
53
20,699, 143
1
9,460,912
4
13,724,630 - 10
69, 760, 142 -18
13,201,954
22
26,361,574
2
8,247,224
136
77,475,796 - 16
13,410, 184
1
4,400,833
43
33,703,222
3
10,436,787
4
4,874,621
35
-
-
74,076 1347,855 ,611
-
6
Significant developments in the construction situation in the
Eleventh District during November included the contraseasonal
increase in nonresidential construction contract awards, which
had been lagging during recent months, and the moderateness
of the seasonal decline of total awards, Residential awards during November totaled $28,000,000, or within 22 percent of the
very high level of the previous 2 mont hs and 28 percent more
than during November 1948, Apartment housing projects and
low-cost housing continued to account for a large part of these
residential awards. Housing for military personnel near army
and air force bases also contributed to the high level of residential activity. The rise in nonresidential awards was accounted
for by some pipe-line projects in Louisiana.
VALUE OF CO NSTRUCTIO N COliTRACTS AWARDED
(I n thousands of dollars)
November
November
1049
Ja nuary 1 to November 30
1948
E leventh District-total.. $ 65,618
S 54,014
Residential.. ..
21,780
21,693
AJl other.. .... . .......
37,838
32,381
Unit ed States--total. .... 957,761
61 1,216
Residential ..
435,235
264,033
All other .....
522,526
347,1 83
- 37 states east of the Rocky Mountains.
SOURCE: F. W. Dodge Corporation.
October
I
1049
65,745
35,641
1949
30, 104
1,06 1,751
$ 686,930
207,025
419,005
9,413,420
500,702
561,049
3,803,535
5,609,885
1948
$ 699,538
234,356
4Cli,182
8,735,595
3,351,209
5,384,326
The cement industry continues to reflect the high level of
construction activity, Cement production in Texas during October was 11 percent higher than during the corresponding
month of 1948, During the first 10 months of 1949, cement
production in the State was 10 percent higher than in the comparable period of the previous year. Cement shipments have
likewise been higher than a year ago. Stocks of cement at Texas
mills failed to increase during October and, though 56 percent
higher than a year earlier, were considerably below prewar levels.
CEMENT
(In thousands of barrels)
J anuary-october
October
1949
October
1948
1,307
1,308
538
19,057
21,277
8,577
1949
1949
1948
1,178
1,221
344
1,31 5
1,426
539
12,352
12,242
11,225
11,400
19,349
20,324
6,094
19,181,
22.763r
10,799
174,843
177,294
169,564
173,478
Texas :
Pr?rluction .. .
. ~"(~~~th·::.:
............
~r ·~~~ih·. ··
.
September
r-RevWed.
SOURCE: United States Bureau of Mines.
The Texas cottonseed products industry registered greater
gains than the Nation during the first 3 months of the 1949-50
season, with cottonseed receipts at mills in the State being 30
percent higher than a year earlier, crushings 28 percent higher,
and oil production 34 percent higher. The record Texas cotton
crop-approximately 87 percent larger than last year-should
yield a record 2,000,000 tons of seed in addition to the seed
retained by farmers, Receipts at mills during the first 3 months
of the 1949-50 season amounted to about 49 percent of this
season's estimated total. Normally a somewhat higher proportion of the season's total would reach the mills during this
period, but the maturity of the crop was, later than u sual in
some areas and difficulty was experienced in picking and ginning
cotton, as well as in storing and handling the large volume of
seed, A substantial fraction of the seed produced has been bought
by the Production and Marketing Administration to be held
for gradual movement to the oil mills. Much of this seed has
been stored in the open, particularly in West Texas.
DOMESTIC CONSUMPTION AND STOCKS OF COTTON
(Bales)
November
November
1948
1949
Consumption at:
October
1949
August 1 to November 30
This season Last season
13,625
771,833
11,979
685,881
13,574
725,602
In consuming estabm 'ts. 1,455,149
Publio stg. & compresses 10,516,430
1,635,081
8,458,339
1,130,457
Texas mills . .. .... . . . •
United States mills .•. .
U. S. Stoc~nd of month:
52,234
2,871,526
51,386
2,850,043
8,365,778
COTTONSEED AND COTTONSEED PRODUCTS
Octobe, 1949
-
-Texas -----United Stat!l9--
-
August 1 to October 31
August 1 t o October 31
This season Last season This season Last season
Cottonseed received at mills (tons) . . .. . .
Cottonseed crU3bod (tons) . . .... . . .... .
Cottonseed. on hand October 31 (tons) .. .
Production or products:
Crude oil (thousand pounds) .. .... . . .
Cake and meal (tons). . . ... . ...... . .
Hulls (tons) .. . ....... . ..... . . .... • •
Linters (running bales) . . . ....... , .. .
Stocks on na nd October 31:
Crude oil (tboll8a.nd pounds). , . . .. . . .
Cake and meal (tons) ... ... . . . . . ... .
Hulls (to.,) ..... . ........ . .. . . . . .. .
Linters (running bales) . ••.• . . . •.• . .•
073,105
491,833
555,132
750,330
382,8 12
431,71 8
2,983,340
1,54 1,024
1,574,820
3,190,061
1,414,304
1,871,377
152,595
231,241
111,721
149,671
114,208
183,231
85,151
128,428
491,783
681,874
363,059
472,065
438,531
640,767
322,680
17,574
23,953
41,583
44,309
13,736
30,442
24,671
68,600
62,162
116.i12
124,264
186,970
42,795
80,246
42,795
170,842
444,187
SOURCR: United States Bureau of CeosWl.
The price of cottonseed in wagon lots in Texas bas averaged
about $43.50 during recent weeks, which compares with an
average price of about $75,00 per ton during the corresponding
period of 1948, The lower level of prices this season reflects the
effect of the increased supply of cottonseed and the gradual
casing of the world fats and oils situation.
United States production of fats and oils in 1949 is estimated
at a new higb of 11,600,000,000 pounds, including the oil
20
MONTHLY BUSINESS REVIEW
equivalent of soybeans and peanuts exported for crushing
abroad. Consumption in 1949 was smaller than a ycar earlier, reflecting the decline in industrial activity. Exports more than
doubled, while imports were small. With domestic output expected to continue large in 1950, prices of most fats and oils arc
likely to remain low compared to prices in other postwar years.
Total production of edible fats and oils during the October
1949-September 1950 season has been forecast at about 8,800,000,000 pounds, or 1 percent larger than during the previous
season. While butter, lard, and other edible animal fat production will rise to about 4,800,000,000 pounds, the production of
edible vegetable oils is expected to decline about 9 percent to
around 4,000,000,000 pounds, due to smaller soybean and peanut crops. Cottonseed oil production in the Nation should risc
about 8 percent as a result of the larger supply of seed from the
16,000,000-bale cotton crop, the largest in 12 years.
The cotton textile industry in November continued the rise
in activity which commenced last summer. During the first 4
months of the 1949-50 season, cotton consumption in both
Texas and the Nation slightly exceeded that during the corresponding period of the 1948-49 season. In Texas, the increase
reflects, in part, the gradual approach to normal operations at
the McKinney mill, which reopened at midyear after having
been shut down because of tornado damage a year earlier. Expores of cotton cloth from the United States during the first
10 months of 1949 were 1 percent above those of the same
period of the previous year, although exports during the JulyOctober period felI 27 percent below the average for the first
half of 1949 and 19 percent below the 1948 average. This decline in foreign shipments since midyear has partially counterbalanced the effect of the sharp upturn in domestic demand.
.ill
•
@FedFRASER