Full text of Review (Federal Reserve Bank of Dallas) : January 1, 1952

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FEDERAL

RESERVE

VoI.37,No.l

BANK

DALLAS, TEXAS

o

F

DALLAS
January 1,1952

1951-1952

Looking back upon the economic developments of 1951,
it is evident that a more satisfactory degree of stabilization
was achieved-even though it may be somewhat uncertain
and tenuous-than might have been anticipated. The year
opened on a very strong note of inflation. Businesses and
consumers eagerly sought to acquire merchandise which it
was felt might later be in short supply; new orders to manu·
facturers were at a very high level; prices pointed sharply
upward; the demand for bank loans continued strong and
was reflected in a rising loan volume; and net personal sav·
ings were at a rate of less than 4 percent of disposable in·
come. It was in this setting that we entered 1951. Therefore,
it is not surprising that there was serious concern regarding
the actual and potential inflationary (Ianger and the pos·
sibility of exercising effective control.
Early in the year, however-in fact, between the middle
and latter part of the first quarter- the strong inflationary
movement began to lose some of its force,and a degree of
caution appeared in the picture. This was especially true
with respect to the over·all demand for goods by businesses

TOTAL INVENTORIES

"

IILI. I0 .. 50' OOt l.'" s

LUONS Of OOL LA ItS

8o

60
0
0

~

'-7

~

o

•o

0

•o

0

•o

0
0
0
0J

f

,..

...

., , . .
1950

s

0

Io

,

,,
• 1951

•

$

0

•

o

and consumers. As shortages failed to develop and as con·
sumers found themselves with adequate stocks of goods to
meet immediate and, to some extent, future requirements, the
buying frenzy that prevailed around the turn of the year
changed quickly to an attitude of caution-"buy now" polio
cies gave way to "wait and see" policies.
The effect of this change in consumer spending was reo
flected very quickly in the inventory positions of many busi·
nesses. Inventories are seldom considered excessive by the
average businessman as long as the rate of sales increasereal or anticipated-is reasonably well related to the rate of
inventory increase. However, when sales taper off or begin
to decline, as was the case in early 1951, inventories that
have not been a matter of concern suddenly become exces·
si ve. By the end of the first quarter of the year, businessmen
generally recognized the danger of unbalanced inventories
and undertook corrective measures. Orders to manufacturers
of civilian goods began to be reduced, buying commitments
were shortened, and more aggressive selling practices were
undertaken to move stocks on hand.
Running through the period from early October 1950 to
the end of 1951 were a number of other developments
which were anti.inflationary in character. These included
actions by government, the Federal Reserve System, private
enterprise, and consumers in the fields of credit, prices and
wages, allocations of materials, taxation, and savings.
Early in the third quarter of 1950 amendment of Regula.
tion W, restricting the terms applicable on instalment credit,
and the institution of Regulation X, applying to real estate
construction credit, were steps in the direction of tighter con·
trol over the volume of credit. The more restrictive Regula·
tion W began to be effective in achieving the desired objec.
tive almost immediately, as the outstanding volume of con·
sllmer instalment credit rose only slightly during the fourth
quarter of 1950 and then declined by almost 81,000,000,000

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

2

MONTHLY BUSINESS REVIEW

during the first 7 months of 1951. Following congressional
relaxation of terms in August, the trend of instalment credit
turned upward. The large amount of outstanding uncovered
real estate mortgage commitments when Regulation X was
instituted delayed the promptness of its effectiveness, but by
mid·1951 it was generally recognized that the Regulation
was exerting a measure of restrictiveness in the mortgage
fIeld.

BANK LOANS
ALL COMMERCIAL BANKS
81L L ION5 OF DOLL"I'IS

ell.L IO NS o r

60

DOLLARS

.sO

~------.~--4--------~'O

Late in December 1950 the Board of Governors of the
federal Reserve System announced an increase in member
bank reserve requirements, which was calculated to absorb
about $2,400,000,000 of reserve funds. Inasmuch as the
System was supporting Government security prices at the
time, however, banks were able to offset the effects of the in·
crease in reserve requirements, to a considerable extent, by
the sale of Governments at par or a premium to the System.
Nevertheless, there was the restrictive influence of higher
reserve percentages and, also, the freezing of funds obtained
from the sale of Governments as required reserves; if reo
serve requirements had not been increased, banks would have
been able to sell such bonds at their own discretion and use
the funds for the purpose of expanding loans.
By far the most significant credit development occurred
early in March, when the Federal Reserve-Treasury "accord"
with regard to System support of Government security prices
was reached_ Although the System, through its open market
operations, assured an orderly market for Government securities, prices of Governments-within the limits of orderly movements-were permitted to decline in accordance
with market evaluations_ As long as prices of Governments
were supported by the System at par or above, such securities were the virtual equivalent of cash, and the initiative
with respect to the availability of bank reserves rested
largely with banking and non banking investors who held
Governments in their portfolios. Following the "accord" and
the subsequent price movements, this situation no longer
prevailed, as banks and other investors became less willing to
convert Governments at a market loss. The result was that
the System regained a considerable measure of control over
the availability of bank reserves, and, as a consequence, a
much firmer money market and a gradual rise in interest
rates developed.
The Voluntary Credit Restraint Program, which was ini·
tiated in March 1951 under the authority of the Defense
Production Act but at the request of responsible leaders in
commercial banking, insurance, and investment banking, also
has played an important part in checking the growth of
private credit. Bankers and other lenders operating under the
Program have done a very commendable job in screening

1950

1951

loan applications with a view toward reducing to a minimum
nonessential, speculative, and inflationary loans. It is never
possible to measure statistically the effect of such a restrictive program, for, in the first place, there is no way of
knowing what the loan volume would have been under different circumstances, and, secondly, numerous other forces
were exerting their influence upon credit demand and supply
at the same time. Loan figures, however, lend impressive su pport to the work of the Program. For instance, during the
period of seasonal loan demand between August 1 and December 5, 1951, total loans of the Nation's weekly reporting
member banks increased only $2,050,000,000, as compared
with an increase of $4,228,000,000 in the same period of
1950; in the Eleventh District the comparable increases were
$114,000,000 and $221,000,000. Furthermore, as indicative
of the success of the effort on the part of bankers to eliminate nonessential or speculative loans, figures show that a
very substantial proportion of the loan increase during the
past 4 months was the result of seasonal loans associated
with the crop movement and defense and defense-supporting
loans.
Price and wage controls instituted in January 1951 also
had a restraining effect upon the trend of prices-both at
wholesale and retail-even thou gh such controls have been
less rigid and have permitted advances in prices of many
commodities and of wages. Although direct controls of these
types in a period of inflation may be needed, they should be
supported by adequate general controls with respect to the
availability of credit, the management of the federal debt,
and fiscal policy. The notable improvement in the nature and
effectiveness of general controls during 1951 made it possible for the direct controls to serve a useful purpose as one
type of tool in the anti-inflationary kit. The trend of prices

MONTHLY BUSINESS REVIEW

PRICE TRENDS
~ERC[HT

PER CENT

200

200
RETAI L

:r

.'

og3~ . 39. IOO~ ••

~
---:-;O

-........

••••••••••••••••••

1,.

1701 - - - • •••••••• ••• . . . . . . . .
.........
'

150

\ - - - - - - 1 - - - - - - - --..,150
WHOLE SALE
11
926 -(00 )

12.f---------t----------j125

Io o , f - - - - -- - - - t - - - -- - - - - - j 100

o}

I ~ 1

w

j ~ 1 ~
1950

N

Tj

N! M J ~

To

1951

SOURC E D,p,dlllu! 01 Lo bo.,

during the year cannot be attributed entirely, or perhaps
even largely, to price and wage controls, but, nevertheless,
these measures certainly contributed to holding the increase
in the cost of living to 3,25 percent between January 15 and
October 15 and to the decline of 1 percen t in the compre·
hensive wholesale price index.
Materials control s and the expansion program in such
basic in du stries as steel, aluminum, electric power, petro·
leum refining, and chemicals progressed significantly during
1951 and helped the economy to support the planned defense
and military production, as well as a large volume of civilian
production, without serious dislocations or shortages. Gov·
ernment aids in the form of rapid tax amortization and di·
rect loans and loan guarantees played a part in speeding up
the expansion program. Total industrial production /luctu·

3

ated narrowly during the year within a range of 223 to 217
(1935·39=100) except during July when mass vacations in
industry contributed to a temporary decline to 212. During
the year the gradual but steady increase in production for
defense purposes tended to offset cutbacks in the production
of civilian goods as a result of material shortages and some·
what lessened consumer demands.
Farm production in 1951 was at an all· time high of some
143 percent of the 1935·39 average. This record production,
together with a large carry·over of many commodities from
the previous year, met all domestic and export requirements,
with the result that farm prices averagcd lower at the year's
end than during last February and March. This downturn in
farm commodi ty prices was important in helping to stem the
advance in the cost of living, particularly in the cost of food
and clothing.

PERSONAL CONSUMPTION EXPENDITURES
BILLION'

22

•

or

8 1LLlOHS 01" OOLL"" S

()OLLlRS

2 25

I
20 0

/
11

l/

/

~

/ ' i'...
2 00

•

"00

I

'"

ihd
3rt'
OU.'HER

1950

..

.

,

I
'"

'"

QUARTER

...

I .0

0

1951

SOURC E OtpO.r", tM o f Com m .. ~t.

INDUSTRIAL PRODUCTION
F. R. II . INDEX - ( 1935-39-100 )

,

PERCENT

00

0

-,

2 .0

25 0

'0

o~

r-

"

00

I• 0

15 0

I00

10 0

°TIIIi.JJl lb~rJ
1950

.JJlj
1951

A1°

Despite increases in tax ratcs upon incomes, the Nation"s
disposable income rose from an annual rate of approximately $217,000,000,000 during the first quarter of the year
to almost $225,000,000,000 during the third quarter, with a
furth er increase probable during !be closing 3 months of the
year. An increase in personal net savings took place, how·
ever, with the annual rate rising from $8,500,000,000 in the
first quarter to the unusually large rate of more !ban $22,.
000,000,000 in the third quarter. This increasc in net sav·
ings does not represent entirely an increase in liquid assets,
since substantial amounts of debt repayment are included in
the figures. Jn part, this large increase in personal saving
re/lects a reduction in the annual rate of personal consump·
tion expenditures during the period of about $5,700,000,000,

4

MONTHLY BUSINESS REVIEW

placing the total for the third quarter of 1951 at the level
that prevailed during the same quarter a year earlier.
This tendency on the part of consumers to restrict their
purchases and to forego the creation of substantial additional
indebtedness but, instead, to add to their liquid assets and
liquidate a portion of their past debts was an important
anti.inflationary development; moreover, it undoubtedly was
closely associated with the more restrictive credit policy of
the period and was also a reaction to the excessive consumer
buying that occurred during most of the 7 months following
the outbreak of the Korean war.
Somewhat in contrast with these various developments
that tended to work in the direction of stabilizing the econ·
omy, other developments during the year in certain economic
areas were strongly stimulative and expansive. Underlying
these stimulative forces, of course, was the defense program
with increasing emphasis upon military and defense produc·
tion, a rising volume of government expenditures, and a
consequent increase in the demand of Government for the
ation's goods and services.

It is estimated that at the end of 1950, or the beginning
of 1951, the proportion of our gross national product being
diverted to defense purposes was about 8 percent. This pro·
portion rose gradually but, nevertheless, steadily during the
year and is now estimated in the neighborhood of 13 per·
cent, with further increases expected as the months pass.
Defense production tended to prevent an increase in the
volume of goods and services available for private consumption, as materials, plants and equipment, and labor gradually were diverted to the more pressing military demands_
Another area of economic activity providing a strong
stimulus during the year was that of business capital expendi·
tures. As businesses undertook to expand their productive
capacities to meet the dual objectives of a high level of
civilian consumption and the goals of thc defen se program,
expenditures for plant and equipment rose very sharply and
I"~ached an all-time high during the year. In the first iI
months of 1951 such expenditures were estimated at an annual rate of $20,660,000,000, but by the third quarter of the
year the rate had increased to $27,200,000,000. The growth
in such expenditures was most pronounced in manufacturing and tends to support the often-stated opinion that during the year much of the expansion that took place was
toward building plant facilities to turn out vast quantities of
necessary goods as the occasion may arisc_
Finally, a record volume of new construction, including
residential and other, resulted during the year. Due to rna·
terial and credit restrictions, the volume of residential con·

struction was well under the 1950 record total, when about
1,400,000 units were started, but, nevertheless, the total of
perhaps 1,000,000 new starts for 1951 approximates the former record of slightly more than 1,000,000 starts in 1949_
In terms of monthly average value of new construction, the
figures for 1951 slightly exceeded the monthly average of
$2,325,000,000 reported in the preceding year.
These strongly stimulative developments tended to balance
out the effects of various actions discussed earlier in this
article, with the consequence that several of the major indexes of economic activity, when charted out on a month.bymonth basis, reflect a relatively level or balanced trend. The
charts presented in this article showing the trends of consumer prices, wholesale prices, industrial production, commercial bank loans, total business inventories, and personal
consumer expenditures during the years 1950 and 1951
appear to give support to this position of over-all economic
stability.
When we turn to the outlook for economic activity in
1952, more lhan tl,e usual number of uncertainties immediately appear, with many of them being associated directly
with the various possibilities in the international situation
and the extent to which the defense program, as it unfolds
during the months ahead, will be the dominating factor.
Perhaps with respect to the international situation one can
only make assumptions. The most logical of those assump·
tions at this time, from the standpoint of one not inti·
mately involved in international discussions and contacts, is
that approximately the present degree of tension will con·
tinue internationally; that no appreciable improvement will
occur in relations between Russia and the Communist Bloc,
on the one hand, and the Western Democracies, on the other.
One may also assume, with some justification, that a cessa·
tion of hostilities in Korea will not change greatly the magnitude or timing of the defense prof,'T am as it is now blueprinted_
On the basis of these assumptions, the defense program
shou ld continue to be the dominant factor in sustaining
boom levels of economic activity durin g 1952. Expenditures
for defense, already in very substantial amounts, will move
toward peak levels during the last half of the year. Thc
Government will take a larger share of our production of
goods and services-a share estimated to reach 20 percent
at the peak of tl,C program-and, consequently, government
expenditures can be expected t.o rise above currcnt levels.
Business trends during the first G months of 1952 may
reflect a more or less sideways movement, due to the probability of seasonal adjustments in tl,e first quarter and early
part of the second quarter of the year_ Rising defense and
government expenditures, together with some dcgree of

MONTHLY BUSINESS REVIEW

deficit financing during the last half of the year, may tend
to stimulate inflationary forces and contrihute to somewhat
higher economic indexes than those currently prevailing.
It is virtually certain that thete will be a full demand for
the Nation's growing labor force, although there may be
islands of unemployment spotted here and there over the
country. The labor problem during 1952 will surely be one
of finding adequate and properly trained workers and not
a problem of meeting an appreciable unemployment situa·
tion. Plant facilities also will be utilized fully, and, in addi·
tion, new plants started during the past 12 to 18 months
will be brought into production. As a consequence, we
should expect that industrial production should rise to
higher levels during 1952 than in the year just closed. As
previously noted, the index of industrial production flue·
tuated generally within a range of 6 points under the peak
of 223 reached in April 1951. The rate of growth in pro·
duction during 1952 may not be as substantial as the ap·
proximate 10-percent incrcase of 1951 but might be in the
neighborhood of 5 percent. If so, the volume of goods avail·
able to the civilian economy would not be greatly different
from that available during 1951, but a larger amount of
goods would be moving to defense and mi litary purposes.
Business capital expenditures, while probably not reach·
ing the record level of 1951, nevertheless, will continue in
large volume. Estimates [or the first quarter of 1952 place
such expenditures on an annual rate bllsis of about $23,000.000,000. Gradually during the year the amount might be
expected to taper off somewhat. In other words. while not
providing an additional stimulative force. such expenditures

5

will be so large as to avoid any deflationary tendencies in
so far as this factor is concerned.

It is probable that businesses will continue efforts to reduce inventories and to bring stocks of goods into better
balance. Inasmuch as it is not likely that serious shortages
will develop, at least during the first 6 months of the year,
there is little reason to anticipate a change in buying practices of businesses or consumers. If, during later months,
the availability of goods should begin to reflect more noticeable shortages, the possibility of increased business and
consumer buying might develop.
Personal income will almost certainly rise above 1951
levels, as will disposable income after taxes. Levels of consumer personal expenditures, consequently, will depend on
individuals' decisions as to spending and saving. On the
whole, however, it is probable that even though net saving
continues at a relatively high rate, the annual rate of personal consumption expenditures will l'un slightly above the
1951 figure.
Price movements, although probably pomtmg upward,
should be relatively moderate. Strong demand for goods and
services, together with adequate purchasing power and the
added factor of higher wage rates and costs of doing business, points toward a somewhat higher price level both at
wholesale and retail. A moderate increase in prices of 3 to
5 percent during the year does not at this time appear improbable. This assumes, however, that anti-i"nationary measures, both of a general and direct type, are maintained at
least as effectively as during the past year and that consumers conti nue to exercise restraint in their huying.

6

MONTHLY BUSINESS REVIEW

REVIEW OF BUSINESS, INDUSTRIAL, AGRICULTURAL, AND FINANCIAL CONDITIONS

Christmas trade at department stores
in the Eleventh Federal Rese rve Dis·
trict rose to a new high, to exceed the
previous record set in 1950 by about
6 percent. Nevertheless, sales of a substantial number 01
stores failed to equal their 1950 volume or, at least, did not
come up to the merchants' expectations, wruch had been
bolstered by the rugh level of sales in November. November
sales were the most favorable for any month since January
1950 and were 13 percent above a year earlier after seasonal
ad j ustment.
Nonfarm employment in the District reached a new high
under the impetus of the continued expansion in defense
employment and the large seasonal increase in retail trade
employment. Crude oil production in December declined for
the second consecutive month, as near· record levels of stocks
brought about a further reduction in Texas allow abies. An
additional cut in allowables was announced for January. The
value of construction contract awards in the District in
November was down 13 percent from October and was 29
percent lower than a year earlier.
Production goals for farmers in trus District in 1952, an·
nounced recently by the United States Department of Agri·
culture, call for an increase of about 15 percent in volume of
crops on approximately 3 percent more acres than in 1951.
The depletion of subsoil moisture during the current lon g and
",cidespread drought in the District may be a serious obstacle
in meeting the production goals. The District's winter wheat
crop is expected ro fall considerably below the Government's
goal, as the drought has reduced the acreage seeded and
prospective yields per acre. Pasture feed is scarce over most
of the District, and the condition of livestock is below nor·
mal for trus season of the year.
Loans of weekly reportin g member banks in the District
rose over $45,000,000 in the 4 weeks ended December 19,
to reach a new record of about $1,566,000,000, or approxi.
mately $99,000,000 more than a year earlier. The net in·
crease between November 21 and December 19 represents
largely seasonal demands of cotton and other commodity
dealers. New loans to defense contractors comprised almost
8 percent of the new commercial and industrial loans during
the 4 weeks ended December 19, a considerably higher pro·
portion than in most other recent weeks. In this connection,
data released by 4·5 of the Nation's large life insurance
companies indicate that 46 percent of the S4,OOO,OOO,OOO
total of loan and investment commitments outstanding na·
tionally on October 31 was for defense and defense·support.
ing activities.
The total dollar volume of Christmas
business at department stores in the Elev·
enth Federal Reserve District reached
a record level, exceeding moderately the
previous high of the 1950 Christmas. Nevertheless, the
Christmas trade did not come up to merchants' expectations,
wruch had been bolstered by an upturn in consumer buying
in October and a very good November business. Moreover,

the sales volume of a substantial number of stores fell below
their previous year's performance. It should be pointed out,
however, that the 1950 Christmas business was inHated by a
substantial amount of war· scare buying.
Store traffic was heavier during this past Christmas season
than in most prior years, and the number of purchases is
reported to have been larger. It should be pointed out, how·
ever, that a little less was spent for the average purchase than
the year before, despite the hi gher prices. Consumer buying
emphasis appears to have been on the moderately priced and
practical items. Sales of children's wear were excellent, and
a good volume of toys, women's apparel, and costume jewelry
was reported. Although televi sion sales were substantially
above year·earlier levels, sales of most other homefurnishings
items were lower.
The lower average value of gi ft purchases contributed to
making this past Christmas a less profitable one for mer·
chants, since less costly items tend to have lower profit mar·
gins and handling costs are larger in relation to the size of
the sale. Moreover, markdowns for inventory clearance
purposes, wruch had characterized the Bummer and fall
months, continued even into the Christmas season as a profit.
reducing factor. The higher labor and other operating costs
prevailing in 1951 also served to lower profits.
The aggregate sales at district department stores for the
principal holiday buying period-the '4 weeks from Thanksgiving to Christmas-averaged 6 percent hi gher than in the
corresponding weeks of 1950. Trus increase is larger than
that of most other districts of the Nation. The Christmas
trade of department stores in the Nation as a whole averaged
just about the same as the year before, 'and four districts
experienced a lower volume than in 1950.
The district department store sales picture in Novemher
was the most favorable for any month since last January.
RETAIL TRADE STATISTICS
(Percentage chonge'

STOCICSI

NET SALES
Hov. 1951 from

11 mo.195t
Line of trode
by area

DEPARTMENT STORES
Total Sevenlh Distrid ••••• •. . •• ... •
Corpu, CArllti ••••••• ••••••• •.•. ••
Dello l ••••.••..••••••••••••.••.•

B Paso •• . •.•• .. •••••• •• ••••••••
Fori Worth • .•...••• ••.••••••••••
Houston •••••••••••••••••••••••••

San Antonio ••••••.••••.••••.••.•
Shreve port, La .•••••••••••••• • ••••
Woco ••••••••.•••••••..•.•. ••.•
Olner cilies •••. • • ••.•••. .... •••• .
FURNITURE STORES
Tolol Beventh District •••....•• . •.•.
.... ustln ••••..•....•..•.•••.•••...
Dallas " .• ,', . ,"',." .• , •• •• •• ,
Houston, ••• , •• ,., •• , ', ••. .••• •••
Po rt Arthur ••.••••••••••••••• • e ••
Son Antonio ..•..•••.••••.•••••••
Sh.reveport. lo .••••..............•
Wichita Falls •••• •••.•••.•••••••• .
HOUSEHOLD APPLIANCE STORES
Total Eleve-nth District ..... .. . ,., •••
Dalla1 .•• •••••••• •• •• •••••••• • , •
I Stocks at end of month.

Nov.

Oct,

1950

195 1

13
25
9
9
9
19
18
17
20

12
3
10
18
10
20
6
12
7
8

11

18
10
66
45
42
26
5
7

_1
1
-1
16
50
-9
7
-16

7

_1
8

-.

camp. with
11 mo.1950

5
3
1
2
2
15
1
5
10
3

Nov. 1951 from

Nov.

Oct.

1950

1951

-1
-2
-3
2
-8
3
-3
11
7
-1

-1
_3
_2
_2
_1
1

-5
-2
-7

-3
-9
4

3

-s
-s
-2

-7
-7
5

-2
_8

7

MONTHLY BUSINESS REVIEW

November sales were up 12 percent from October, a sub·
stantially larger·than·seasonal increase, and were 13 percent
higher than a year earlier. The increase in sales was distrib·
uted over most of the important department store items, with
the exception of some homefurnishin gs, such as furniture
and carpeting. Sales of women's and misses' dresses were 17
percent higher than in November 1950, while sales of worn·
en's and misses' coats and suits were 12 percent higher.
Men's. clothing sales posted a year·to·year gain of 10 per·
cent. While sales of some of the homefurnishings items
tended to lag, television and radio sales ran 73 percent higher
th an a year earli er and major applian ce sales, 24 percent
higher. Cumulative department store sales for the first 11
months of 1951 were 5 percent above the level of the same
period in the preceding year.

ANNOUNCEMENT

The Federal Reserve Balik of Dallas has revised the
indexes of department store sales and stocks for the
Eleventh Federal Reserve District for the period 1919
to date. Current revisions of indexes have beell made
simultaneously by each of the 12 Federal Reserve
banks as a joint project with the Board of Governors
of the Federal Reserve System. The index base period
has been shifted to 1947·49 from 1935·39, and indexes
of department store sales and stocks hereafter will be
published by this bank for the Eleventh Federal Reserve District on the 1947·49 base period only, except
for the l·month overlap shown in the table below_ For
the convenience of those who may wish to maintain
indexes of department store sales and stocks on the
1935·39 base, this bank will furnish, upon request,
such revised indexes from January 1919 through No·
vember 1951, as well as a factor which may be U3ed to
convert indexes on the 1947·49 base to the 1935·39
base.

WHOtESAtE TRADE STATISTICS
Eleventh Federal Reserve District
IPen:entoge I;honge)
NET SALESp

STOCKS'p

Nov. 1951 from

Nov. 1951 from

- ,..,--- - : - - 11 mo.1951 - -- - -- No'll,

line of trade
Automotive supplies • .• •••..•
Drugs and sundries ••• .... ..•
Dry goods •• ••... • .....•.. •
Groury (full·line wholesa le rs
not sponsoring groups)•• .. •
Hardware • • •••• • ••• •••••••

Industrial supplies • ••. • . • •. .•
Machinery equipment and sup-

plies except .I~tricol . • •..•
Melal •••.• •• • • •• • •••.•.. •
R.friveration equipment, ports
(commercial) •.••• • .......
Tobacco products •.••••• •• .•
Wines and liquors ••• • ••. • .•
Wiring "up plies, corutruction
mate ria l" distributon • • • •• •

1950

1951

Oct.

compo with
11 mo. 1950

Nov.
1950

24
5
4

30
-6
-7

10
-2

69
8
-3<

10
-7
16

15
7
13

- I
-5
18

25

7

4
10
30

- I
-8
18

-29
-10

-41
-35

31
36

7
8

7
-8
12

-15
-13
7

13

- 1

19

Pamphlets giving detailed information on, the revi·
sions and adjustments, as well as on the methodology
used ill the compilation of the indexes, may be ob·
tained from the Research Department of the Federal
Reserve Bank of Dallas.

Ocl.
1951

-3

_1

INDEXES OF DEPARTMENT STORE SALES AND STOCKS

-8

Stocks at end of month.
p-Preliminory.
, Indicates chang e of leu than one·half of 1 percent.
SOURCE: United Sta tes Bureau of Census.

11947·49 -1 001
UNADJUSTED

I

The policy of inventory reduction which merchants have
been following since late last spring continued in November
and December. District department store stocks declined
slightly during November, in contrast with the moderately
rising pattern which usually prevails at this time of year, and
at the end of the month were 1 pcrcent below a year earlier.
Althou gh merchants had succeeded in reducing their heavy
stocks substantially by November 30 and a further marked
decrcase undoubtedly occurred during December, it appears
that the year·end level of stocks is still a little higher than
most merchants would prefer. Nevertheless, the major
portion of the inventory readjustment probably has been
achieved. Orders outstanding rose 14 percent in November,
but continued below year·earlier levels for the sixth consecu·
tive month. It will be noted, ho wever, that the 9.pcrcent
year·to· year decline in orders outstanding on November 30
was smaller than that prevailing at any time during the five
previous months.
Althou gh district furniture store sales in November failed
to show the usual seasonal gai n over the very large October
volum e, they were the highest for any Novembcr since 1947.
Sales were down 1 percent from October but were III per·
cent higher than a year earlier. Furniture store stocks
declin cd 3 percent in November, markin g the seventh conse·

Nov.

Area
SALES-Daily overage
Beventh District •• •• . •••• • • •
Dallas ••••••••.••• • •••••. •
Houston ••..•. •••••••••• . • •
STOCKS-End of month
Eleventh District ••••••••.•.•

Od.

Sept.

ADJUSTEDI
Nov.

Nav.

Cd.

1951 1951 1951 1950 1951 1951
144
141
157

119
118
121

124
120
142

135

136

138

Sept.

Hov.

1951

1950

127
129
132

129
122
140

114
110
122

115
108
130

113
112
118

137

120

125

135

122

(1935·39-1001
UHADJUSTED
Nov.

1951
SALES-Daily averoge
Eleventh District •• ••.•• • ••••
Oallos .••••• • •.•.•. •• ..•.•
HOUlton ••••••.•••••.•.•..•
STOCKS-End of month
Eleveflth District •• • ••••• • •••
I

Od.
1951

525
485
607
476

ADJUSTEDI

Nov. ex•. Sept. Ho ....
1951 1950 1951 1951 1951 1950
Sept.

Nov.

437
408
468

441
401
529

472
446
527

H5
401
502

405
371
426

409
361
494

400
369
435

474

488

495

429

452

474

446

Adjusted for seasonal variation.

cutive monthly decline, and at the end of the month were 5
percent lower than a year earlier, the first year· to· year de·
cline in 19 months.
New car registrations in the Houston and San Antonio
metropolitan areas declined noticeably from October to No·
vember but in the Dallas metropolitan area showed a small
increase. The November Houston and San Antonio registra.
tions were lower than in all but one of the preceding 12
months and were below the corresponding months of 1950
and 1949. Although Dallas registrations were about 12 per·
cent less tllan in November 1950, they were about 4 percent
above the relatively high November 1949 levitt.

MONTHLY BUSINESS REVIEW

8

The United States Department of Agri.
cultme is asking the Nation's farmers to
produce a record volume .of crops in
1952. A new high Icvel of livestock proexpectcd. Farm production should total about
149 percent of 1935·39 if these goals and expectations are .
realized. This would compare ffith an estimated 143 percent
for 1951 and 141 percent for 1949. Increased per acre yields
and more efficient use of all agricultural resources are essential to the success of the 1952 program. The Department is
urging producers of cotton and feeds to make every effort
to increase production by obtaining higher yeilds on the
available acreagc. Corn and' grain sorghums should be given
prior claim on land over less productive grain crops. The
acreage goals thus far announced, plus probable acreage of
other crops, would require 4,500,000 to 5,500,000 acres
more cropland than in 1951, which was a near record.

AGRICULTURAL PRODUCTION AND GOALS
( 1
935-39-100)
RCENT
"0
I.

I

I

~1

I

",

1.

/ " UN ITED STATES
14

40

~''':- RIJ/"'U'"
}.•~r.::.'" ~ :I :'''''r.... //-~\..".~,~ '0
..... .....

o
o

L..

I
I

~TEXAS

10

00

•

0

00

•0

•o

40

40

•

•o

0

0

1940

1942

1944

1946

1948

* GOALS

"'"

..

,0

SOURCE: U. S . OI,o.l_nl.f A;rlcYII.r • .

CROP ACREAGE GOALS FOR 1952
(In thotnonds of acres)
five southwestern states I

Telilos

1952 goal
1951

Crop

1952

indicated

goal

of 1951
Indicated

170
• •726
994
6.416
21
544

2.675
1.600
200
5.200
932
6.400
21
540

112
102
118
110
94
100
100
99

12,486

11 ,9 15

Sweet pototoes ••

47
24
28

150
27
42

91
319
110
150

Total •••••••

29,406

29.702

99

Com • • ••• •. ••• •
Oatl ••.••••.•••

Barley, •.•.•..••

Grain sorghums ••
Hoy •••• •• ••••••

Wheat ••• '" •••
Rye • • ••••• ••• ••

Rice ••••••• •••• •
Dry edible beons.
Corton ••••••••••

Flaxseed ••••••••
Irish potaloes ••. •

2.378

os percent

1,572

1951
IndicQted

1952
goal

1952 goal
as pe rcent
of 1951
Indicated

15,856

55
59
94

72
1.155
132
15.390
164
64
149

109
100
94
108
98
105
100
99
152
92
298
109
159

47,586

48,867

100

.4,572
2,Bl1

478
6.130
2,774

13.436

72
1.162
87

.4.993
2,820

450
6.646

2,707
1.4,125

1 Arlxona. louisiana, New Mexico, Oklahoma, and Telltas.
SOURCE: United States Department of Agricul~ure.

The total of acreage goals for the five states of the Eleventh
District, as set forth by the Department of Agriculture, shows
little change from the acreage planted in 1951. However,
goals for individual crops indicate the desirability of some
shift in land use, as shown in the accompanying table. The
Department is asking farmers in this area to devote less land
to production of barley, hay, rice, and cotton, but to increase
their acreage of corn, oats, grain sorghums, wheat, dry
edible beans, flaxseed, and' potatoes. The distribution of cropland among individual crops as provided by the goals for
1952 indicates a shift toward a more usual pattern of land
use than was followed in 1951, when very large acreages of
cotton and rice were planted. Should farmers in this area
comply ffith the acreage goals, and at the same time contribute their share to thc increase in production of major
crops requested by the Department of Agriculture, it will be
necessary to increase the average yield per acre OVer 1951.
While farmers in the Southwest generally may be ffilling
to give due consid'eration to the Agriculture Department's
requests when making tbcir plans for production in 1952,
scrious difficultics may be encountered. The c'ontinued
drought ovcr a major part of Texas and in parts of adjoining
states, together with labor shortages, high wage rates, and
possible shortages of fertilizer, insecticides, and equipment,
presents problems which must be faced. Scattered rains have

been received in most sections since September, but fall rains
were far below normal and the moisture received has been
mostly dissipated. Farms throughout perhaps two· thirds of
the crop· producing part of the District have very little if
any sW3soil moisture, and there is a critical need for good,
soaking rains.
The effect of the drought on crop production in 1952 is
already evident. The winter wheat crop, as well as crops
of other small grains and winter legumes, generally has made
very poor progress. Much of the wheat crop was seeded' in
dust and was late germinating, or was destroyed from lack
of moisture. Acreage planted to winter wheat in Texas totaled
only about 5,323,000 acres; the 1952 goal is 6,400,000 acres,
which is about the same as that planted for harvest in 1951
but well below the 7,587,000 acres planted for the 1947 crop.
The 1951 crop of only 17,000,000 bushels compares with a
1940·49 average of 63,000,000 bushels and a 1947 record of
124,000,000 bushels.
WINTER WHEAT ACREAGE
{In thousands of acres}
For harvest in

Slat.

1950

1951

1952

Arizona •• •• • ••••• .• •••••• •• • ••••••••• •• •
Ne .... Mexico ••• • ••• •••••••• •••••••••• • • ••
Oklahoma • • ••••••• •••••••• •• ••• •••••.•••
Telltos ••• . •••. .. ••• .•... •• • ...• ..• ••••••

30
560
5.910
5.601

26
700

25
630
6.140

6,265
6,049

5,323

SOURCE: United State., Deportment of Agriculture.

The Department of Agriculture is asking Texas farmers to
produce 60,000,000 bushels of wheat and Oklahoma growers
to produce 76,000,000 bushels in 1952; current production forecasts are approximately 40,000,000 bushels and
80,000,00 bushels, respectively, for the two states. The De·
partment has asked for a 10-percen t increase over 1951 in
sorgh um grain acreage in Texas, and this goal probably will
be met if moisture conditions permit; if the intended wheat
acreage is shifted to sorghums, the goal may be exceeded.

MONTHLY BUSINESS REVIEW
Commercial vegetables in south Texas have made good
progress in recent weeks as moisture supplies have been more
ample and temperatures have been favorable for growing
crops. However, acreages of most winter crops are sharply
below a year ago. Smaller crops of carrots and lettuce are in
prospect. The winter cabbage, beet, and Irish potato crops
are far below average. Furthermore, growers' reports of in·
tentions to plant potatoes for the early spri ng crop in the
Lower Valley are 15 percent under the small acreage of 1950
and 79 percent below average. It is expected that production
of commercial vegetables in tbis area will be far below gov·
ernment goals. During December light supplies of tcnder
vegetablcs continued to move from the Lower Valley, while
harvest of tomatoes at Laredo continued in fair volume and
supplies of carrots, lettuce, and spinach were largely from
the Winter Garden.

9

August 1. All states of the Eleventh District made substantial
gains in cotton production in 1951, although yields per acre
in Oklahoma, Texas, and New Mexico were well below aver·
age. Oklahoma with an average yield of 149 pounds of lint
per harvested acre had the lowest yield in the Nation, while
Texas reported 167 pounds per acre for the second' lowest
of any state. All parts of Texas reported lower yields than
in 1950, with the exception of upper coastal and east Texas
counties and irrigated sections in the west. Irrigated farms
of Arizona produced 74.1 pounds per acre,
COTTON, YIELD AND PRODUCTION

Texas Crop Reporting Districts
YielD
per harvested acre
(pounds)

PRODUOION
500 lb. gran weight bales
(thousands)

1951
Average
Crop repOt'ling district

CASH RECEIPTS FROM FARM MARKETINGS
(In thousands of dollars)
Cumulative receipts

October

September

Stote

1951

1950

1951

1950

Arizono ........... $ 15,76 3 $ 16,717 $ 40,177 $ 36,189
louisiana.. ...... ..
47,402
47,104
72,041
52,132
NewMexico .......
12 ,0 11
10,11063,128
{)5,747
61,083
SO,OIS
85,194
65,519
Oklahoma. .. ......
Texas ....... ..... 220,343 217,263 299,577 288,997

January _

1951

Odober
1950

$ 213,253 $ 177,747
269,011
217,204
168,735
142,611
484,193
446,065
1,590,855 1,629,539

Total ......... $356,602 $3041,209 $560,117 $498,584 $2,726,047 $2,613,166

I·N Northem High Plains . ....
1·5 Southern High Plains •.... .
Red Bed Ploins . .... .....
Western Cross Timbers ...•
Bleck (lnd Grand Prairies ..
EastTexas Timbered Plains
Trans·Pecos ............ .
Edwards Plat.au ........
Southern Texas Prairiel ...
Coostol Prairies .........
South Texas Plains .......
Stole .............. .

2
3
4
5
6
7
8
9
10

1940· 49

1950

203
202
178
135
158
145
481
140
184
232
262
181

1951

indicated Average
Dec. 1 1940·49

272
230
207
110
157
121
462
201
198
264
355
211

indicated
Dec. 1

81
589
569
40
723
253
99
43
296
133
223

89
722
548
16
557
120
143
48
230
122
351

320
950
515
25
640
190
225
17
288
250
680

3,049

298
172
109
63
114
126
502
43
137
324
338
167

1950

2,946

4,100

SOURCE: United States Deparlment of Agriculture.

SOURCE: United State. Deportment of Agriculture.

Citrus fruit production in district states is the smallest in
many years. Groves in Texas and Louisiana suffered serious
damage from a freeze in February 1951, and the commercial
production for the 1951·52 season will be negligible. In
Texas, growing conditions were favorable during late 1951;
supplies of irrigation water were ample. Most of the season's
short crop was expected to move during the Christmas season,
except for the small production of Valencias, which will not
mature until later. Arizona oranges are estimated at 1,025,·
000 boxes, and grapefruit, at 2,800,000 boxcs- down a fourth
and a tenth, respectively, from last season,

The continuation of the drought bas had severe effects upon
ranges and pastures throughout the western two·thirds of the
District, and dry range and pasture feed is scarce in most
areas. The condition of ranges in Texas on December 1 was
cstimated at 16 percent below normal for that date. Winter
grain crops have provided relatively little grazing for live·
stock, and supplemental feeding of cottonseed cake, range
cubes, and roughage has been necessary over much of the
District. Feed shortages and chilling winds have caused fur·
ther shrinkage of livestock, The condition of livestock in
Texas in December was substantially below normal for the
month, with cattle down 6 percent and sheep and goats down
13 percent.

CITRUS FRUIT PRODUCTION
LIVESTOCK RECEIPTS

(In tt)Ousands of bOJlles)

IHumber)
Average of
10 seasons
ended 1950

Indicated
1949·50

1950·51

1951·52

November November

ARIZONA
Oranges ... ......•....... .
Grapefruit . .. .. •........ ..
LOUISIANA
Oronges. .......•.... • ... .
TEXAS
Oranges ................. .
Gra pefruit . . ..... ... ......

FORT WORTH MARKET

905

985

3,29.4-

3.400

1,400
3,150

1,025

2,800

308

360

300

50

3,616

1.760
6.400

2,700
7,500

350
250

17,387

SOURCE; United Stotes Depa rtment of Agriculture.

The unfavo rable outlook at present for crop production in
the District in 1952, as weli as estimates of production in
1951, reflects the widespread drought over the District during
the past 6 months or more. The December 1 colton production
report shows a United States crop of 15,290,000 bales, or
some 2,000,000 less than was indicated at the beginning of
the harvest season. The Texas crop estimate was placed at
4,100,000 bales, as against a 5,000,000·bale estimate on

October

SAN ANTONIO MARKET
November November

Clan

1951

1950

1951

1951

1950

October
1951

Cattle ........ . .
Calves ......... .
Hogs ........ .• .
Sheep ......... .

51,572
33,220
77,730

53,390

23,635
25.386

30.015
33,583
6,769

33,514
38,231
8,755

47,304

26,552

87,890
57,036
57,799
128,253

111,831

149,963

40,204

76,365

5,436
11 6,728

i Includes gooh.

Meanwhile, livestock marketings continue at a relatively
high level. During the 4 weeks ended December 15, receipts
of cattle at the Fort Worth market totaled 34,000 head, up
1,000 from the same weeks of 1950. Receipts of calves, at
26,000 head, were up 3,000. Marketings of hogs totaled
18,500 head, or 3,000 more than a year earlier. Receipts of
sheep and lambs reached 31,000 head, up 60 percent from the
corresponding period of 1950. Commercial meat production
in Texas during the first 10 months of 1951 totaled about
2 percent more than during the corresponding pcriod in 1950,

MONTHLY BUSINESS REVIEW

10

compared with a I-percent decline for the United States. More
cattle and fewer hogs, calves, and sheep and lambs were
slaughtered in the State during those months.

LOANS
Weekly Reporting Member Banks
ELEVENTH FEDERAL RESERVE DISTRICT
MIL lIO "'S Of" DOLL.ARS

M I LL IONS Of' OOL.L.AAS

After a rise of about 7 percent from September to November, the average of farm commodity prices in the District
tended to level off in December, although price trends for
individual commodities were mixed. Prices of wheat, corn,
sorghum grain, and poultry advanced. Corn prices on the
Fort Worth market reached the highest level since 1919, as
No. 2 white corn rose to $2.67Y2 per bushel on December
10. Other grains are at the highest levels in more than 3 years.
Middling 15/16-inch cotton in the Dallas market reached
the season's high of 43.20 cents per pound on November 9
and held generally between 41 and 43 cents as late as December 20. Rice is holding at the support level. Prices of live·

I • • 80

I,SS

..,.)

1,54 0

0

..........

1,46 0

:--+-- . /

i'-v

1,38 0

bu.
cwt.
cwt.
cwt.

cwt.
cwl.
lb.
lb.
lb.
lb.
lb.
case
lb.

I. 380

...

1,34 0

I. 340

'

,l'

0

I. 300

.'

.-4-

....·.....-

1,16

g
J

CORN, No.2 yellow, Fort Worth ......
SORGHUMS,No. 2 yellow milo, Fort Worth
HOGS, Choice, Fort Worth ...........
SLAUGHTER STEERS, Choice, fort Worth
SLAUGHTER CALVES, Choice, Fort Worth
SLAUGHTER LAMBS, Choice, Fori Worth.
HENS, Heavy, Fort Worth . .. ........ .
FRYERS, top grade, Fort Worth ........
TURKEYS, No.1 hens, Fort Worth ..... .
BROILERS, East Te~as .............. . .
BROILERS, South Texas ...•...........
EGGS, graded, Fort Worth .•.........
COnONSEED OIL, Fort Worth ........

460

I. 4>0

..//

1.18

Comparable

.4190
2.821/.t
1.24%
2.281,4
3.13
19.00
35.00
34.00
30.00
.26
.30
.40
.28
.28
16.50
.13

"'~~':::~-::""

I .260

1950
I .2.2.0

···r··-·······

••••• -j ••••• -• •

Top Pric:;es Paid in local Southwest Markell

Unit Dec. 20, 1951

..

:/

1,22 0

Commodity:and:market

...

I. 540
I. 500

_ .'

0

FARM COMMODITY PRICES

conON, Middling 15/16-inch, Dallas . . lb.
WHEAT, No.1 hord, Fort Worth ... .. .. bu.
OATS. No.2 white, Fort Worth ........ bu.

V

1951

0

Week ended

/

Comparable

week

I

1·····(

I

F

M

M

A

I
J

J

A

LOll W.dnudaJ 01 tll'lI'Ionlh I lgurtf

S

o

I. 180
I. 160
N

Oec
wnUl

week
last yea r

lost month

.4220
2.80*
1.291A
2.221A
3.06
19.00
35.00
33.50
30.00
.27
.27
.40
.24
.25
18.90
. 13¥t

.4300
2.64\4
1.18
1.881,4
2.57
20.00
31.50
31.S0

31.M

stock at Fort Worth were rather weak during early December,
with many classes losing as much as $2.00 per hundredweight.
Price declines during late November and early December
were noted also for cottonseed, peanuts, oats, and barley.

prised almost 8 percent of all new commercial and industrial
loans, a considerably higher proportion than in most other
weeks.
Investments in United States Government sec untIes rose
$53,225,000, with Treasury bills more than accounting for
the increase. Holdings of the latter increased $58,327,000,
principally as a result of large subscriptions to the 20l-day
Tax Anticipation Series bills issued on November 27. Qualified depositaries were pennitted to make payment for bills
allotted for their own and customer accounts by credit to the
Treasury Tax and Loan Accounts. Investments in Treasury

CONDITION STATISTICS OF WEEKLY REPORTING
MEMBER BANKS IN LEADING CITIES

Loans of the weekly reporting member
banks in the Eleventh District rose $45,228,000 between November 21 and De·
cember 19 to a record of $1,565,884,000,
continuing the rather sharp npward trend that had prevailed
since October 3. This increase of about 3 percent compares
with an expansion of about one·half of 1 percent during the
comparable period of 1950. Commercial, industrial, and agricultural loans accounted for most of the increase during the
4 weeks ended December 19, although loans to banks and
the category comprising consumer loans rose noticeably.
The expansion in loans at the wcekly reporting member
banks since early August reflects principally the extension
of credit to meet the seasonal requirements of cotton and other
commodity dealers. Loans to grain and milling concerns and
manufacturers in the food and liquor lines also rose, but the
decreases in other major categories of commercial and industrial loans were more than offsetting. During the 4 weeks
ended December 19, new loans to defense contractors com-

Eleventh Federal Reserve District
(In thousands of dollan)

II em

Total loans (gross) and inveslmenn . .... .. . .
Totalloans-Net ' ...... . . ........ . .. ... .
Total loans-Grou ..... .. ..... .. .... ... .
Commerciol, industrial, and ogricultural
loans ......... . . . ................ .
loons to brokers and dealers in securities ..
Other loons for purchasing or c:orrying
securities ..... ... .... ... .. . ....... .
Real eilote loans .. ... .. . .. .. . ....... .
loons to bonks .... ... ..... .......... .
All other loonl ....... . . . .... ........ .
Total investments .. ............ ...... .. .
U. S. Treasury bills . .. ..... ... ... . ... . .
U. S. Trea sury certificates of indebtedness.
U. S. Treasury notes .. ................ .
U. S. Government bonds {inc. gld. obligations)
Other securities ...... ................ .
Re$er~el with Federal Reler~e Bank ......... .
Balances with domestic: bonks .............. .
Demond deposits-adjusted! .......... ..... .
Time deposits except Go~ernment ••••.•..•...
United States Go~ernment deposits .... ...... .
Interbank demand deposits . ...... . ........ .
Borrowings from Federal Reserve Bonk ... .... .

Dec. 19,
1951

Dec. 20,
1950

$2,970,893
1,549,565
1,565,884

$2,731.597
1,453,555
1,467,039

$2,867,862
1,504,273
1,520,6 56

1,091,473
9,0 80

1,025,463
7.697

1,046,318
8,955

54,767
120,292
2,336
287,936
1,405,00 9
316,563
158,243
179,466
581,562
169,175
585,931
465,030
2,377,288
452,173
83,498
909,561
8,500

57,935
114,835

57,881
123,281
923
283,298
1,347,206
258,236
151,140
193,358
579,875
164,597
596,0 89
432,052
2,300,777
431,990
87,390
874,511
6,000

21,
1951

No~.

o

261,109
1,264,558
119,565
27.626
359,706
601,559
156,102
517,904
439,606
2,212,100
422,230
52,444
836,041

o

I Afte r deductions for reserves and unallocah:d charge-affs.
1 Indud es all demand deposits other than interbank and United States Go~ernment, leu
cosh items reported as on hand or in process of colleclion.

MONTHLY BUSINESS REVIEW
noles declined $13,892,000, with almost two-thirds of the
decrease offset by increases in certificates and bonds_ Holdings of municipal and other non-Government securities
rose $4,578,000_ On December 19 total investments of these
banks amounted lo $1,405,009,000, which reflects an increase of 11 percent over the year-earlier total.
Deposit lrends during the month included increases of
$114,931,000 in demand deposils and $20,183,000 in time
accounts_ Demand deposits of individuals, partnerships, and
corporations rose $91,603,000, or 3_9 percent, principally as
a result of the expansion in loans and invesbnents but also
reflecting the seasonal increase in business and personal
receipts in the larger trade centers of the District. Banks in
Dallas, Houston, and San Antonio, Texas, showed the larger
gains in these personal and business deposit accounts_ United
States Government deposits declined somewhat, despite the
sharp increasc during the first week of the period due to the
special ofTering of Treasury bills, while inlerbank deposits
rose $35,050,000_ Time deposits rose S20,183,000, principally as a result of the increase in deposits of states and
political subdivisions_ Total deposits of the District's weekly
reporting member banks rose to a record of $4,133,464,000
on December 19_
GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
Eleventh Federal Reserve District
(Averages of dolly figures. In thousands of dollon)
COMBINED TOTAL

Gross
Dote

demand

Time

RESERVE CITY BANKS

Gross
demand

Time

COUNTRY BANKS

Gross
d em and

Time

November 1949 .. $5,482,103 $636,996 $2,666,217 $408,479 52,815,8865228,517
Nove mber 1950 .. 6,087,614 657,25 8 2,951,134 406,100 3,136,480 251,158
July 1951. ...... 5,855,513 673,533 2,746,696 376,455 3,108,817 297,078
August 1951 ..... 5,966,447 672,892 2,807,435 373,116 3,159,012 299,776
September 1951. 6,169,109 675,186 2,917,338 371,361
3,251,771 303,825
October 1951 ... 6,361,591 681,258 3,017,115 373,996 3,344,476 307,262
November 1951 .. 6,592,87.4 686,144 3,101,804 376,802 3,491,070 309,342

During recent weeks the sharp upward trend in currency
circulation that began earlier in the year continued_ Federal
Reserve notes of this bank in actual circulation reached the
low point for the year on March 26, or 4 to 6 weeks earlier
than in other recent years, and rose $89,440,000 between
that date and December 15_ This greater-than-seasonal increase compares with the expansion of 531,574,000 during the
similar period in 1950_ In the Nation, money in circulation
rose $1,999,000,000 from March 28 to December 12, as compared with 790,000,000 in the corresponding period of 1950_
The loan and investment commitments of life illilUrance
companies, an important new series of financial data, were
made public on December 20 by Governor Powell of the
Federal Reserve Board, Chairman of the National Volunlary Credit Restraint Committee_ Tbese data, compiled for
the Nalional Voluntary Credit Restraint Committee by the
Life Insurance Association of America, do not permit a full
appraisal of the Voluntary Credit Restraint Program as
applied to life insurance companies, since they do not cover
loans and investments deferred in accordance with the principles of the Program_ evertheless, lhey constitute a new
and important source of information on the lending and inveslment activities of one of the major groups of financing
institutions_

11

COMMITMENTS OF 45 UFE INSURANCE COMPANIES
TO ACQUIRE LOANS AND INVESTMENTS
OCTOBER 19511
(In millions of dollars)

H.w commitments
during moolt'!
Amount
TOlal commitments . .....
State. provincial, and
local governments.,.,
O.fense-Iotal ..... . .
Public utilities . .....
Railroads ... ......
8usiness and indusfria l coocerns .....
Nondefense-foto l ....
Business and indus·
trial concerm; . ....
Farm purchasers . ..•
Nonfarm home
purcho ~ers ••

•• ••• •

Tola l Commilmenll
outstanding at
end of month
Amount

Percent

Percenl

Commitments
expected to be
take n down
within 6
months
Amounl

Percent

$758.1

100_0 $4,036_8

511.5
$362.8
41.3
4_5

47.9 $1,867.1

317_0
$383_8

41.8 1,268_2
50_6 $2,119.0

32.2

20_8
'.2

9"".8

96.2

23.4
2.4

56".2
8".5

22_5
3_4

194_3

25.6

1,078.0

26.7

794.0

31.7

157.3

1.5

5_5
0.6

$50.7
395.4
203_5

100.0 $2,505_5
1.3

100.0

$36.4

L4

46.2 $1_026.4
9_8
239.5

158.4

41.0
9_6
6.3

31.4
628.4
52_5 $1,442_6

25.1
57_6

5.0

I Includes busine" mortgage loons of leu thon $100,000 and foreign inveslmenb, neither
of which was reported prior to September.
SOURCE: Compiled by the life Insurance Associotion of America in accordance wilh the
Program for Vo[unlg ry Credit Restraint.

Com~itment figures reported by the 45 life insurance
companies whose combined assets represent 85 percent of
all life insurance company resources show that there has
been an increase in the proportion of life insurance company funds earmarked for the financin g of defense and
defense-supporting activities_ For example, 46 percent of the
$4,000,000,000 of commitments outstanding at the end of
October were for these purposes, as compared with 37 percent on April 30_ New commibnents to finance defense and
defense-supporting activities constituted 46 percent of total
new commitments made in September, but this proportion
rose to 48 percent in October. Newly earmarked funds for
railroads and public utilities declined from September to
October, whereas those for "business and industrial concerns"-principally manufacturing companies- rose sharply, both in absolute amount and in relation to total new
commitments of all types_

Outstandin g commibnents of tbe reporting insurance companies declined approximalely $750,000,000 between the end
of April and the end of August, with the funds allocated for
residential real estate mortgage financing accounting for 56
percent of the total and other nondefense financing commitments, for 32 percent. Outstanding commitments rose in
both September and October, but the increase in the former
month reflects the inclusion of commitments which formerly
were not reported_ Financing of plant and equipment expansion accounts for the greater part of the proposed uses
of funds by borrowers in nondefense industries, and the
same is probahly true in the case of defense and defensesupporting industries_
The reporting insurance companies estimate that $2,500,000,000 of the $4,000,000,000 in commitments outstanding
on October 31 would be taken down within 6 months_ Half
of the funds allocated to businesses other than railroads and
public utilities are expected to be utilized after April 1952,
while the bulk of commibnents to most other borrowers is

MONTHLY BUSINESS REVIEW

12

expected to be taken down during the fourth quarter of
1951 and the first quarter of 1952.
Debits to dcposit accounts reported by banks in 24 cities
of the District were only slightly higher in November than in
October, with most cities showing decreases. Reflecting the
high level of business activity, debits in November were 17
percent above the year·earlier total. The larger year-to-year
increases in Novcmber were shown by banks in Amarillo and
Port Arthur, Texas, while Abilene, Texas, was the only city
reporting a decrease. The annual rate of turnover of deposits,
or the annual rate of use of deposit accounts, was 15.0 in
November, as compared with 15.4 in October and 14.0 in November 1950.
BANK DEBITS, END-OF·MONTH DEPOSITS,
AND ANNUAL RATE OF TURNOVER OF DEPOSITS

CONDITION Of THE FEDERAL RESERVE BANK OF DALLAS
(In thousands of dollars)
December 15, December IS, November 15,
1951
1950
1951

Item
Total gold certificate reser"es ••••.••....•
Discounts for member bonks • .• ..•..•.•..
Industrial advances .••••••.••.•..•••.•.•
Foreign loans on gold •••••••.•....•....
U. S. Government securities ••.. .... .. . ...
Total earning c;useh •.•..... . . •.. .. .....
Member bank reserve deposits •..........
Federal Relerv. not.s in actual circulation . .

625,576
5,000
39

$746,237
2,000

1,112,029
1,117,068
1,062,096
698,414

923,801
925,801
920,3Bl
639,504

o

o
o

$ 598,793

o

52
37
1,118,499
1,118,588
1,003,906
682,702

Recent weekly offerings of 91-day Treasury bi1ls were sold
at successively higher average rates of discount. For example,
the issue dated November 23 was sold at an average rate of
discount of 1.585 percent, with the rate rising to 1.725 percent for the issue dated December 20. The latter is the highest
rate for this type of security since the early 1930's.

(Amounts in thousands of dollars)

DEBITSl

DEPOSITS2

Percenfage
change from

November

City

Nov.

Oct.

1951

1950

1951

85,847

25

--I

50,148
177,507

14
11

25,41 B

ARIZONA

Tucson •.•.•••••••••.
LOUISIANA
Monroe •••••••••.•••

Annual rate of turnover

Nov. 30,
195)

Nov.

1951

~ 10'"

11.2

11.0
1 0.4

12.7
11..4

10.6

10.3

11.5

12.1
17.0
13.9
17.5
15.1
7.3
17.8
16.3
16.1
9.5
16.8
10.2
17.9
13.2
9.2
11.0
10.7
11.6
8.9
9.6

13.9
15.2
12.2
15.2
13.9
7.-1
17.5
16.4
14.6
8.3
, 5.0
•. 8
16.7
10.6
9.7
10.B
10.0
11.2
9.7
9.0

12.8
17.9
14.2
17.0
15.2
B.8
1 B.O
15.6
16.7
10.1
16.S r
12.0
15.7
12.0
10.2
11.8
11.9
12.1
10.3
10.3

15.0

U.O

IS." r

-I

1

12.4
11.3

15

-1

29,506

54,333
157,075
134,961
136,881
127,200
13,883
1,510,125
188,518
501,79.4
78,623
1,562,749
19,171
147,543
47,825
42,199
352,979
21,266
51,002
68,423
83,381

-6
2B
16
16
16
4
18
4
25
16
19
7
20
32

_-I

54,736
110,9B5
115,923
94,564
101,13B
22,593
1,036,792
140,B02
375,57B
100,444
1,130,935
23,431
104,OBB
44,585
55,010
387,567
23,960
52,847
93,631
103,75-1

Totol-24 cities ••....•• $5,638,851

17

$4,544,161

Roswell •••.•••••••••
TEXAS
Abilene •••.•••......
Amarillo •••••••. .. ••
Austin ••••• . •••••.••
Beaumont •••••••.•••

Corpus Christi ••••••••
Corsicana ....•....•.
Oollos ••••••••.•••••
EI Poso ••..........•
Fort Worth ••.•. ...••
Galveston •. . ..... .. •
Houston ............ .
Laredo .••..••..•.••
Lubbock •••.••..••.•
Port Arthur .•••..••••
San Angelo •••••.•.••
Son Antonio •••....••
Texarkana 2 ••••••••••
Tyler ••••••.••. .. •••
Waco .•••.•••••..••
Wichita Falls ••••••.••

-I

8
12
8
-I

17

_1
1
7

-,

-15
2
9
-2
-5
2
-11
23
14
-9
_5
-9
-3
-11
-7

•

9.7

49,081
192,514

Shreveport ••••.•.•••
NEW MEXICO

Nov.
Oct.
1950 1951

1 Debits 10 deposit accounts eKcepl interbank accounts.
I Demond and time deposits, including certified and officers' checks outstanding but excluding deposits to the credit of banks.
I This flgure includes only one bank in Texarkana, Texas. TOlal d.bits for all bonks 11
Texarkana, Texas-Arkansas, including two banks located in Ihe Eighth District, amounted to
$37,374,000 for the month of November 1951.
I Indicates change of less than one-halt of 1 percent.
r-Revised.

NEW PAR BANK
The Citizens State Bank, Earth, Texas, a newly organized, insured, nonmember bank, located in the territory
served by the Head Office of the Federal Reserve Bank
of Dallas, was added to the Par List on its opening date,
December 10, 1951. The new bank has a capital structure consisting of common stock, $75,000; surplus,
$25,000; and other capital funds, $12,500. The officers
are: W. R. S~ockard, President; E. C. Hudson, Vice
President; and W. R. Stockard, Jr., Vice President.

The high level of economic activity
in the Southwest at the end of 1951 is
indicated by the record volume of non·
farm employment. In Texas the seasonal
rise in employment at retail trade establishments accounted
for an increase of about 24-,000 persons from October to December. The continuing expansion of defense production during the same months resulted in the addition of about 1,000
aircraft workers and about 1,500 workers in the ordnance,
metals, metal products, and machinery industries. On the
other hand, government controls affecting construction led
to a reduction of about 2,000 workers in that industry.

NONFARM EMPLOYMENT

Toxas and Five Southwestern Statel L

Between November 15 and December 15 the principal
changes in tbe condition of the Federal Reserve Bank of
Dallas included increases of $58,190,000 in member bank
reserve deposits and $26,783,000 in gold certificate reserves.
Total earning assets remained virtually unchanged, since the
reduction of $6,470,000 in holdings of United States Government securities was approximately offset by the increase
in discounts for member banks.
On December 14 the Secretary of the Treasury announced
that holders of $1,062,609,000 of the 2~ -percent Treasury
bonds called for redemption on December 15 had accepted
the new refunding issue, an 111h-month 1% -percent certificate of indebtedness. Cash redemptions of the called bonds
amounted to $55,442,000, or about 5 percent.

(Estimated numbers in thousands of penons'

Area and type of
nonfarm employment

December
1951

December
1950

fiVE SOUTHWESTERN STATES•• •
Manufaduring •••••• . •.••••
Other •••••..•••••..••••.•
TEXAS •.••••.•••••••••.•••.•
Manufacturing .•••••. . .• .. •
Other •••••••. ••• • ••••••••

4,'230
762
3,468
2,600
-167
2,133

4,096
704
3,392
2,496
426
2,070

Increase
Number

Percent

134
5B
76
10-1

3
8
2

-II

63

•

10
3

I Arizona, louisiana, New Mexico, Oldahama, and Texas.
SOURCE, United States Bureau of Labor Statistics.
State employment agencies.

The gradual tightening of the labor market is indicated
by the decline of unemployment in 17 major labor market
areas of Texas to about 2.5 percent of the nonfarm labor
force, as compared with 3.2 percent a year earlier. So far

MONTHLY BUSINESS REVIEW

during the defense program, continued migration to industrial cities has nearly matched the rise in labor requirements
of such cities. However, certain technical and skilled worker
groups have been insufficient in number for expanding defense industries, and many domestic workers have been atlracted increasingly to better types of employment. Despite
Ih e tighter labor situation, industrial relations improved in
1951, with the number of Texas workers involved in labor
disputes falling to an average of 1,526 during the first 10
months of the year, compared with 5,202 during the same
period in 1950.
HOURS AND EARNINGS IN MANUFACTURING
Texas

13

residual fuel oil-exceeded year-earlier levels, with the com·
bined total amounting to 283,000,000 barrels, equivalent to
40 days' requirements. Total stocks of crude oil and these
four products amounted to 542,000,000 barrels, which
is 14,000,000 barrels below the November 3 record but
37,000,000 more than a year earlier_
This level of stocks appears ample despite the normal
winter increase in consumption. During the colder months
stocks are drawn down, as consumption almost inevitably
exceeds the maximum feasible production and refining
capacity of the industry. In addition to meeting these normal
demands, over-all stocks appear adequate to take care of any
probable increase in military requirements short of major
war.

Chonge

October
1951

October
1950

Amount

$63.90
$1.50
42.6

$59.49
$1.39
42.8

$4.41
$0.11
- .2

Percent

SUPPLY AND DEMAND FOR All OILS, UNITED STATES, 1951-52
Average weekly earnings •..•.•
Average hourly earning s •.. . ...
Averoge weekJy houri •...•...•

7.4
7.9

1952

The petroleum industry at the year-end was faced with
some major factors of uncertainty with regard to (1) the
demand for burning oils, which is increasing seasonally and
requires constant vigilance as to transportation and storage
due to the vagaries of the weather; (2) military requirements, which are being met increasingly from southwestern
sources; and (3) the international oil situation, including
the rapid recovery in American imports during recent
months, following the sharp reduction after the Iranian
cris is. The preparations of the petroleum industry to copc
with developments in these areas are indicated, in part, by
its current and prospective positions with respect to pro·
duction, international petroleum movements, over-all de·
mand, and stocks.
Crude oil stocks on December 8 amounted to a near-record
259,000,000 barrels, equal to 37 days' requirements at the
]951 average rate. Stocks of each of the four major refined
products-gasoline, kerosene, gas and distillate fuel oil, and

STOCKS OF CRUDE OIL
AND FOUR MAJOR REFINED PRODUCTS
UNITED STATES

••

"
'0

0

MILLIOHS 0' IlAIIRE LS

L I ONS OF I!IARRELS

I

60 0
0

_- __ -1.---TO TA L

,.. --",

1

.. ,,---;.00'-...... --.,"-,,-

' ...... ,,"-"

4' 0

......

'0
•00

I

•.0

"J

•
,00
•'0
00

_-,

•
•'0
•.0
•

40 0

,.

.

•0

•

0

REFINED PRODUCTS_

~. "7'...:7"".................

zo 0-

....... ..

.,..j
'

00

.?'

Z00

CRUDE OIL

I

"0
10
0

'0

I 00

,o

0

0

0
1949

19S0

* G..l'lh... k"o"n.,gQl and dl,l llIol. ful oH.on4 r..
600I'tC[S American

'Ilrol .~m

Inllllule.

U. S Buruu of Mi n,,:.

19S1
ld~DI

fUll DII.

19SZ

1951

Chclnge

SUPPLY [New) •• •••• ••• • ••••••••••••••••••••• 7,762

SOURCE.: Texos Employment Commission.
United States 8ureou of labor SlotisliC3.

."0

(Amoonh eslimated In thousand. of barrels p.r day)

-.5
7.574
6;104
6,149

188
161
141
20
27

Production.... .•• . • .• . . . ••• . . • • .• . •••• . •••• 6,865
Crude petroleum ••••.••••••••...• , ••.•.•• 6,290
Noturol gasoline and relaled products.. . . . • . • 575
Imports . • • . . • • . . . • . . . . . . . . . . . . .• . ••• • . . . • •
897
Crudo petroleum ...•• • ,..... .. .. . . . . .....
520
Refined produch., .•...........•. , . • . • • . . •
377
CHANGE IN STOCKS .............. ...........
Crude petroleum . . • ••• . • . . . . • • . . . . • • . . . ••• •
ReRned products.... . . . . . • . . • . • . . . . • . . • . . . .•
DEMAND!, ..... . • ...• •••••...•.. ....•. • ..• .•
Domeitte, total .•..••..••••.•..•...•....•..•
Export. total.... .... ............... .... . ...
Crude petroleum ..••.........••..••.....•.•
Domestic reftnery runl. • • • • • . • • • • • • • • • ••• ••
Export..................................
ReRned produc;h •••• . ... . •...•.•.•.. • •.•••••
Gasoline. . • . • . . . • . . . . . • . . . . • . . • . • . . . . . .•
Kerosene. •• • . . • • • • • . • • • . • • • • . • • • • • • • • • • •
Distillate fuel oil ....... .. ........ .. ...... ,
Residual fuel oil •..... ....... .. .•.....•. • ,

S5S

870
519
351

I

26

-13
0
- T3

129
19
110
7,445
7,039
406
6,598
6,522
76
7,369
3,100
351
1,283
1,623
1,012
7,039
330

330
415
-85
142
158
-16
346
202
17
93
-21
55
415
-69

2.5
2.4
2.3
3.6
3.1
0.2
7.4

-1.42
-19
-123

7,775

Percent
chonge

7 ... .54

321
6,7"0
6.680
60
7,71 S
3,302
368
1,376
1,602
Olher. • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •• 1,067
Domestic •• . •.....•. . . ......•. • .. •... ••.. 7 •.45,(
~port..................................
261

4.4
5.9
-20.9
2.2
2.4
-21.1

47
6.5
U

7.2
-1.3
5.4
5.9
-20.9

1 Includes domestic and export demand for reftned products and export demand for
crude petroleum.
SOURCEI Petroleum Adminhtralion for Cefeme.

Currently, the petroleum industry is operating its refineries
at a record rate, due to the seasonal excess of demand over
new supply, while crude oil output is being cut back moderately to keep over·all stocks in line with probable yearrOllnd needs. Runs to refinery stills in the Nation averaged
6,648,000 barrels per day in November, up 165,000 barrels
daily from October and 567,000 barrels daily from a year
earlier. The production of natural gasoline and related products was also at or close to record levels in November. In
this District, runs to refinery stills decreased 2,000 barrels
per day in November but were 170,000 barrels daily above
the rate in November 1950.
Crude oil production in the District in Novemher averaged
3,107,000 barrels per day, or 61,000 barrels daily less than
the October record but 276,000 barrels daily above a year
earlier. The decrease from the previous month reflects cutbacks in production allow ables, which declined still further
in December and January. Production in the Nation continues
to follow the trend in this District. Imports of petroleumprin cipally crude oil and residual fuel oil- have shown a
substantial recovery since last summer and in November were
only moderately below imports in that month of 1950_

MONTHLY BUSINESS REVIEW

14

RAILROAD COMMISSION OF TE XAS

VALUE ADDED BY MA NUFACTURE,1 945-51
FIVE SOUTHWESTERN STATES

OIL AN D GAS DISTRICTS

WILL IONS Of' DOLLARS

5,000

MILLIONS Of' OOLL""S

5,000

•.OOOi---+---+- --f-- - t----lV-/ L<- 4.000
C -I

TL

FIVE

i7

5.000f---+---c!....-~:::t=~",..-!_L--+---I3 .000

/

2'000I---+/-/---t---+---h~.~.:~~?""··· ·· ·
·····'/I..·· ........I · . T
...... .
I ooof,--==-:+.~·

SOUTH CENTRAL
NIOOL.£ GULl'"

LOWrR GULF

o

NORTHEAST
lL HOfIf'H COITRAL

'te.

_0 1 '
_°

LOU'S'ANA

WEST CENTRAL

1945

WEST
II. HORTH
10. PANHAHDLE

194$

AR I,ZONA,NEW

1941

(Ba rrels)

Total
Area

production

production

Increase or decrea se in doily
average production from

Dailyavg.

ElEVENTH DISTRICT
Texas R. R. Com. Districts
1 South Cenlrol. . . . . . . . . . 1,006,550
2 Middle Gulf........... 5,100,900
3 Upper Culf •••••.•.•..• 14745,750
4 Lower Gulf.... . ....... 7,808,800
3 East Cenlral. • . . • . . • . . • 1,632,300
6 Northeost...... . ... . .. 12,063,450
East Texas. • .•.. .•• • 8,313,000
Other fJelds. • ••..••• 3,750,450
7b North Central. . . . . . . . . . 2,503,800
7c West Central. ......... 3,603,000
8 West .•.......... ... .. 29,336,100
9 North.................
4,749,000
, 0 Panhondle......... .. .. 2,497,800
Total Tuas •. . .•••.. 85,047,450
New Mellico...............
4,425,600
North louisiana. ............ 3,740,250
Total Eleyenth District ...... 93,213,300
OUTSIDE ELEVENTH DISTRICT... 93,838,332
UNITED STATES . •••••• . . . ••.• 187,051,632

33,552
170,030
491 ,525
260,2 93
54,410
402,115
277,100
125,0 15
83,460
120,100
977,870
158,300
83,260
2,834,915
147,520
124,675
3,107,110
3,127,944
6,235,OS4

No'll. 1950

2,317
18,917
28,491
27,883
11 ,412
9,650
-13,170
22, 820
11,047
40,850
105,305
8,308
-6,740
257,440
18,367
-510
275,297
77,134
352,431

Ocl.195 1

-1,3 16
-4,949
- 22,744
- 10,634
-903
8,262
6,029
2,233
- 3,153
2,506
- 27.906
-3,Q5 8
-94 2
-64,837
4,330
-6S4
-61,1 6 1
-37 ,09 3
_98,2 54

SOURCEt Estimated from American Petroleum InstiMe weekly r.port"

The 1950 national survey of manufacturing, together with
subsequent trends in manufacturing employm611t and prices
of manufactured products, indicates Lhat value added by
manufacture increased each year from 1945 through 1951
in Texas and in each of th ose years except 1949 in the other
states wholly or partly in Lhis District. The 1945-51 gains
amounted to about 213 percent in Texas and about 180 percent in the five district states. The years of fastest growth
werc 1947 and 1950-51. Conversion from wartime to postwar production was essentially completed in 1947. At the
same time, there was rapid expansion in the chemical, oil
refining, and other industries, with nati onal concerns and
others building many new plants in this Dist~ict. In 1950·51
the defense program induced an increased output, expansion
of capacity in many existing plants, and the construction of
numerous new plants to produce aluminum, chemicals, petro·
leum products, and other defense items.

.-

,' -'

~EXICO ond

19 48

0'''-' , . ,,' " 11,,..I, d IrOfft .""Io, ..,nr

November 1951

__.

I ~--=-_ .. - -- 1
,000

50UI'I(;[5, 1'_", 1'4'_ $0, U. S. h'tou 01 III. Cl nlv"

CRUDE OIL PRODUCTION

_

' .000

~-~i----i---- l---::.:J-r·

_____ ........_0'-"i°- ' - ;o
-

UST CENTRAL

e.

.....

. . ....·......r

3 , UPfER GUL F

.'

on~

1949
p, lu

y

fKLAHOMA-1

1 50
9

0

1951

dolO .

The cottonseed products industry in the Southwest at the
year-end was confronted with an appreciably larger demand
fo r its feed products-cake, meal, and hulls-than a year
earlier but a smaller demand for cottonseed oil and linters.
The increased. feed demand reflects the shortage of vegetable
protein feeds resulting from the rise in the cattle population
and from ti,e drought in much of Texas and Oklahoma. Further stimulus to Lhe use of cottonseed products as feed has been
the relatively higher price of grains. The price of cottonseed
in wagon lots in Texas was about $75 in December, compared
with about $106 a year earlier. This price decline despite a
strong demand for feed products resulted from the increased
supply of seed from this season's larger cotton crop and the
weakening of the markets for cottonseed oil and linters.
The Texas cottonseed products industry registered somewhat smaller gains than the Nation durin g the [lrsL 3 months
of the 1951-52 season, with cottonseed receipts at mills in
the State being 46 percent higher Lhan a year earlier, while
crushings were up 3 percent and cottonseed oil production
up 1 percent.

COTTON SEED AND COTTO N SEED PRO DUCTS
TEXAS

UNITED STATES

August 1 to October 31

August 1 to October 31

This season
conON5EED {tons}
RecelYed a t mills. ••• • ••••••
Crushed .••• ••••..•.. . .•..•
Stocks, e nd of p eriod •••.••••
CO TTONSEED PRODUCTS
Production
Crude oil (Ihousand pounds)
Cake and meol Itons}. •••••
Hulls [tons) . •••...• . .. . .•
linters {running bares) •• • ••
Stoclu, e nd of period
Crude oil (Ihousand pounds)
Cake Cl nd meol {tonsl, .•. ••
Hulls (tons) •• • ••• ••••••••
linters {running b o les} ••• ••

last season

This season

lost season

787,684
436,287
401,275

538,D58
421 ,429
324,420

3.196. 173
1,575,0 84
1.687.370

1.942.286
1,2 53,121
973,665

132.462
210.124
98.389
144.414

131.479
197.998
99.152
127.274

483,567
728.450
346.644
504.920

389.583
562,074
289,561
407,326

20,525
18,028
8,402
33,976

14, 195
75,884
40,456
14,982

74,337
72,611
35,269
135,369

49.382
214,226
96.647
89.757

SOU RCE: United Stat .. Bur.au of Census.

15

MONTHLY BUSINESS REVIEW

The cotton textile industry continues to feel the effecLs o[
excessive inventories in the distribution system and the relatively slow civilian demand for colLon goods, both of which
[actors Lo some extent reflect the heavy consumer buying
during the months after Korea_ Despite the substantial military demand, mill consumption of cotton durin g the first 3
months of the 1951-52 season was at a rate 7 percent lower
than a year earlier in the Nation and 4 percent lower in Texas.
The value of construction contracts awarded in the District
declined more than seasonally during November, with the
LoLal amounting to $63,000,000, or 13 percent less than
in October and 29 percent less than a year earlier_ Residential
awards were down 11 percent from the previous month and
nonresidential down 16 percent, with decreases from a year
earlier of 27 percent and 32 percent, respectively_ The decrease in a wards apparently was rather general throughout
the District, reflecting shortages of some critical materials
and tight controls over nonessential construction_ The percentage declines in thi s District during November were
appreciably greater than those in the Nation, although during
the first] 1 months of 1951 residential awards were up 6
percent in the District in contrast with a decline of 6 percent
in the Nation. In nonresidential awards, there was less difference, the District gaining 24 percent and the Nation 22
percent over the first 11 months of 1950.

1950

ELEVENTH DISTRICT ..

R.,idential . .
All other •.....

UNITED ST AlESI ....
Residential ..• .. ..
All other •... .... .

$

63.<156
32,882

30,574

931,768
443,884
487,8 84

$

89,931
44,957
44,974

$

73,210
36,945
36,265

Number

Valuation

LOU1S1ANA

241 $ 693,262
Shreve port ....
TEXAS
86
810,070
Abilene .... . ..
317
1,409,32 8
Amarillo ..... .
158
1,639,5 58
Austin . ...
222
354,587
Beaumont .. ...
225
554,159
Corpus Christi ..
5,762,968
Dalla s ....... . 1,5 06
207
658,273
EI Paso .. . ... .
606
1,727,776
Fort Worth . ...
Galveston .... .
121
117,041
8,072,262
Houston ..... . .
808
1,075,884
lubbock . .... .
187
502,251
Port Arthur . ...
148
1,944,751
So n Antonio ... 1,028
997,250
Waco ...... . .
254
313,150
Wichita Falls ..
43
TotaL .. . ...... . 6,157 $26,632,570

Nov.
1950

0,,_

Number

Valuation

1951

- 37 -44

3,575

15,176,932

-46

-22

1,092
3,701
2,463
2,768

6,746,756
19,874,809
27,663,431

-50
-7
-24
-25
-32
-21
-41
-3
-1

-5
29
8
-58
-45
-66
-33
-66
-48
-32
149
-58
52
-25

11 B
-6
12
-40
-34

-14 18,954

6,956,138
17,405,727
92,689,989
14,158,990
41,118,803
7,261,424

52 10,292

122,906,675
17,336,280

3,419

-15 2,760
-29 7,643
-49 1,318
-68 2,9-49
-20 1,82-4
-51 13,465
-32 2,356
-43 1,075

-40 -1579,654

-22

5,667,693
42,305,968
1-4,310,824
6,163,130

-27
6
-16
-23
27

$457,743,569

-22

1950
$1.071,819
508,496
563,323

ci ties, where future economic growth is expected to support

the real estate market, but are still difficult to obtain in many
smaller towns.

697,622
14,516,792

November

1,087,602

1,05' ,4 19

496,682
590,920

.496,247

5,877,284

13.333.163
6,262,445

555,172

8,639,508

7,070,71 B

I 37 stoles east of the Rocky Mountains.
p-Pre!imina ry.
SOURCE: f. W. Dodge Corporation.

November 1951
City

Percentage
change in
valuation
from 11
months
1950

$1,235,773
538,1 S1

January -

October
1951p

November

1951p

11 monlhs 1951
Percentage
change in
va luation from

1951p

{In thousands of dollars}
November

BUILDING PERM1TS

Present indications point to continued tight controls for
the next several months over critical materials used in construction, However, many builders are still able to draw upon
accumulated stocks or can find suhstitutes, Supplies of lumber, brick, cement, and most other nonmetallic materials are
adequate, as well as the supply of construction labor, Mortgage funds gradually are becoming more plentiful in the large

VAtUE OF CONSTRUCTION CONTRACTS AWARDED

Area .and type

Demand for housing in defense areas and for military purposes continues strong, partly offsetting the decline in residential building in many other areas.