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REVIEW
FEDERAL
Vol. 41, No.1

RES E R V E

BANK

DALLAS

January 1,1956

DALLAS, TEXAS

THE SOUTHWESTERN ECONOMY IN

In IIcarly every phase of the southwes tern and national
cconomies, with the exception of agriculture, 1955 was a
year in which new records of production, consumption,
income, credit, and employment were established. More people were employed at higher levels of income for steadier
periods of time and were more productive than in any previous year. From the early days in January (with economic
recovery well under way) through the closing days of December (with a strong economic boom in evidence) , the attitude
of both consumers and businessmen became more and more
optimistic. Not even the shock of the President's illness could
long restrain the broad wave of confidence.
This exuberance was manifest in the willingness of consumers to buy unprecedented amounts, either with their own
expanding incomes or with borrowings. While consumer
buying spread throughout the market, its strength was most
noticeable in consumer durable goods, where it was supported by a substantial expansion of consumer instalment
credit.
Industrial production in both the Southwest and the Nation rose steadily throughout the year, and although manufacturing employment remained below its 1953 peak, the
physical output of goods was higher than in 1953. Durable
goods manufacturing industries, which experienced the greatest declines in 1954, showed the sharpest increases in 1955.
Nondurable goods industries showed smaller production increases but, as a whole, reached record levels before the
durable goods industries. Shortages of many basic raw materials (such as steel and copper), as well as shortages of other
factors of production, hampered output in a few indus·
tries in the last half of the year.

1955

In the Southwest, 1955 will be remembered as one of the
best years for the majority of consumers and businessmen.
In order to take a closer look at the individual areas of the
Southwest and their particular changes, it is necessary to
consider the various facets of the economy and the relative
changes in those areas since 1954.
Production

While there is no comprehensive measure of industrial
production for the Southwest, the measurement of changes in
output can be obtained by consideration of the major com·
ponents where direct production data are available and by
an analysis of the level of employment for the remaining
sectors of our industrial complex.
Manufacturing employment in the five southwestern states
in 1955 averaged more than 2 percent above that of 1954, and,
at an estimated total of 736,600 in November, was within
4,000 of the record established in 1953. The majority of the
gain was in Texas and Oklahoma, although marked increases
occurred in certain categories of manufacturing employment
in all District states except Louisiana.

MANUFACTURING EMPLOYMENT
F I VE SOUTHWESTERN STATES
US A NO S

THOUS4NDS OF 1'[11;, ONS

or PER SONS

7 40

/ '''-J.
73 0

7 30

JiY

7 20

~551

The only segment which did not participate in this new
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71
expansion was agriculture. Although total agricultural proo
duction in 1955 was comparable to that of 1954, there were
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7 00
still large differences among areas and among crops. More7001--...
over, price declines caused a further contraction of cash farm
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income. The trends toward a smaller agric ultural population
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and an enlarging farm size continued in 1955, although the
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number of farm workers employed was about the same as in
SOI,lRCE Stoh
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the previous year.
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

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MONTHLY BUSINESS REVIEW

As measured by manufacturing employment, the major
gains in 1955 occurred in lumber and wood products, primary metals, machinery, printing and publishing, and chemicals and allied products_ The tremendous demand for steel,
stemming from the continued growth in oil activities, steadily
expanded the demand for labor in the primary metals industry _ The gains in machinery employment stemmed largely
from increased plant and equipment expenditures, particularly in the latter half of the year_ The improved demand for
lumber and other building materials occasioned an iucrease
in lumber and wood products employment, which reversed
the long-term decline in snch employment. Increased employment in the chemical and allied products industry reflected
the enlargement of existing plants and the construction and
operation of new plants_
Employmen t in transportation equipment industries in
1955 was virtually unchanged from a year earlier. The Texas
aircraft industry maintained a relatively steady level of activity, but aircraft manufacturing employment rose markedly
in the Tucson, Arizona, area. Automobile manufactnring employment increased, while shipbuilding fluctuated considerably during 1955.
Activity in the Nation's oil industry was particularly strong
in 1955, and every major phase-from drilling through production, refining, and marketing--set new records of performance. Moreover, domestic production was supplemented by a
higher level of imports, which was 15 percent above the 1954
total. Demand for petroleum products increased 4 percent;
demand for gasoline and residual fuel oj) was especially
strong. The growth in the number of automobiles and trucks
and their more intensive use were the major causes of the
increased use of gasoline, while the greater demand for resid·
ual oil stemmed from improved operations of factories, power
plants, and transportation agencies.
The improvements in the Nation 's oil industry were reflected in similar gains in the District. As demand increased,
District crude oil production also rose and for the year as a

DAILY AVERAGE CRUDE OI L PRODUCT ION
ELEVENTH FEDERA L RESERV E DISTRICT

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DAILY AVERAGE CRUDE RUNS TO REFINERY STILLS
EL E VENTH FEDE RAL RE SERVE DI STRI CT

"'2.Io4 LIONS OF ."' RA(t. S
2.

"II LLIOHS OF eMUIE

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2 .3

955

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1954

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Am" ';GII Pel ' lI leum I" "I,Iu te.

whole averaged nearly 3,200,000 barrels per da y, or 194,000
barrels more than in 1954. However, the number of statewide producing days in Texas, at 1<)4, was unchanged from
a year earlier, indicating a further noticeable rise in productive capacity.
Crude oil production and refining activity reached new
records early in 1955 and, after a slight cu tback in late spring
and summer, rebounded to even higher levels in November
and December. District refinery r uns averaged 2,190,000 barrels per da y, which is nearly 156,000 barrels- or 8 percentabove the 1954 average. This District percentage increase is
slightly above the gain registered for the Nation, reflecting
the improvement in refining activity along the Texas Gulf
Coast.
The stronger demand situation and strengthening pdces,
coupled with increases in production and refining, stimulated
drilling during 1955. Total well completions in the District
reached a new record and were about 3 percent above those
of 1954·, compared with a nationwide increase of 1 percent,
The major gain in the District was in development drilling,
while in the Nation, wildcat drilling showed the sharpest
increase. Alth ough no major fields were discovered in the
District in 1955, there was considerable activity in extending
existing fields into new pay sands .
The marketed production of natural gas in the four producing states lying wholly or partially within the District
continued to expand in 1955, and it appears that such production may exceed that of 1954 by nearly 15 percent. Demand
also increased appreciably, as new consuming areas were
connected by pipelines and existing customers increased
conswnption.

Other hasic mllllllg activities in the District-including ~
potash, sulfur, and copper-recorded substantial increases
over production in 1954. The recovery of potash from mines
near Carlsbad, New Mexico, rose sharply as new producers
entered the field and as the demand for fertilizers increased

MONTHLY BUSINESS REVIEW

VALUE OF CONSTRUCTION CONTRACTS AWARDED
ELEVENTH FEDERAL RESERVE DISTRICT
MILLIONS 01 DOL

ILLlOfrtSOlflOU"'"

,"0

160
140

____1\ '

120

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RESIDENTIAL

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I60
I40
I20

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I

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TOTAL:

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level in the last 6 months. On an annual-rate basis, new housing starts in the Nation began 1955 at about 1,400,000 but
by November had declined to 1,200,000, averaging about
1,300,000 for the year. In the Southwest, most of the fluctuation in residential construction activity occurred in or near
the larger cities, since construction activity in the smaller
areas was relatively stable.

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with more intensive farming. Sulfur production likewise
expanded in 1955, primarily in response to increased demands from improved industrial activity and the discovery of
new sulfur deposits in the Southwest. Copper production,
although quite active in most months, did not show the expected gain, largely because of shutdowns due to labor
disputes.
In other areas of production, such as building materials,
tbe strong demand for cement caused capacity operations in
the Southwest's cement mills during most of 1955. Total
production of portland cement in Texas mills increased 12
percent over that of 1954, and with continuing strong demands in prospect, producers are planning substantial increases in capacity during 1956. The demand for and price
of cement moved up sharply in the summer months, but seasonal cutbacks eased the cement sbortage toward the end
of the year. Scattered reports indicate that lumber production increased only slightly in 1955, while industry sources
in brick, stone, and clay plants relate a picture of intense
activity througbout the year.
Construction activity in the Southwest and in the Nation
increased sharply over that in 1954, although the year-to-year
comparisons tend to show reverse patterns of development.
In 1954, construction activity did not begin developing rapidly until the latter part of the year, whereas in 1955 the greatest growth was evident in the first half of the year. Tbe value
of construction contracts awarded in the Eleventh Federal
Reserve District was nearly 21 percent above that of 1954;
in the Nation, such awards increased nearly 22 percent. Construction employment in the five states of the District in 1955
averaged slightly higher than in 1954.
Most of the regional gain in construction during the first
half of 1955 stemmed from an increase in residential construction; in the second half of the year, nonresidential construction was much stronger. In the District and in the Nation, residential construction activity accelerated quickly
through the first half of the year but eased to a more moderate

Nonresidential construction, on the other hand, showed
fairly consistent gains throughout 1955 and provided most
of the stimulus to total construction during the latter half of
the year. The principal areas of increase in this activity were
commercial, public works, and manufacturing building construction. As reflected by contract awards in Texas, the only
District state for which detail is available, the value of construction awards for commercial buildings rose to a new
record in 1955, exceeding the 1954 total by more than 13
percent_ Similarly, public works construction reached a new
high in 1955, with the value of awards increasing 31 percent
over the 1954 level, and public and institutional construction
contract awards rose 36 percent to a new record_ Utility construction, while nearly 5 percent over the previous year, was
well below the record established in 1952.
The gain in manufacturing construction, as reflected by a
190-percent increase in the value of contract awards in 1955,
shows the continued growth of industrialization in the Southwest. Industrial manufacturing contract awards reached their
fourth highest level in the history of Texas. This gain is particularly significant in the face of a nearly 8-percent decline
in military construction in the five District states and a 50percent decline in such construction in Texas. From scattered
information, it seems probable that much of the increased
construction occurred in those same areas of growth as has
been the case in the past few years--Le., chemical, petroleum,
and fabricated metals industries.
Agricultural production in the District states in 1955 was
virtually equal to output in 1954, despite drought and unfavorable growing conditions during the early part of the

CASH RECEI PTS FROM FARM MAR KETINGS
FIVE SOUTHWESTERN STATES

or DOLLARS

Wl l LIONS

4'0

.. I LL ION' 0' DOLL.lItS

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SOU PICE U S OUOflmtfti 01 A, ,,ul lw ...

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350

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19.'
1

~ 400

250

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M

450

i::?\

'00

SON

'50

MONTHLY BUSINESS REVIEW

year- which reduced the production of wheat, oats, barley,
and other winter grains. Favorable moisture conditions at
critical periods and the increased usage of fertilizers, better
seeds, and other improved practices combined to provide
record and near· record yields for many spring·planted crops.
The 1955 District cotton crop is estimated at approximately
the same as tbe 1954 crop, despite a 14-percent reduction in
acreage allotments; while the rice crop was only 11 percent
below 1954 output, even with a 21.percent curtailment in
acreage. The production of grain sorghums, corn, and peanuts
in 1955 was sbarply above tbe levels in the previous year.
The relative abundance of feed grains at somewhat lower
prices, the reduction in acreages of some important crops,
and the relative improvement in range conditions after mid·
year encouraged high.level output of meat animals and ani·
mal products in the District during 1955. Although the
production of wool was slightly below that in 1954" the out·
put of poultry products and red meat was sharply above the
year·earlier levels. Live.weight cattle and calf slaughter was
up about 2 percent from the preceding year; sheep and lamb
slaughter, up 12 percent; hogs, up 17 percent; and poultry,
up 14 percent.
Although agricultural output in the District in 1955 gen·
erally compares favorably with that in 1954, production in
a few areas was disappointing. Drought in tlle early part of
the year severely affected tlle income of farmers in the High
Plains wheat area and in south Texas counties. Late.spring
freezes damaged citrus fruits and pecans; virtually destroyed
other fruit; and necessitated the replanting of cotton, sor·
ghums, corn, and some vegetables in many parts of the Dis·
trict. Moreover, heavy rains and early fall freezes damaged
cotton and decreased yields on the South Plains of Texas.
Severe insect infestations reduced yields in parts of Texas
and Louisiana.
Under the impact of large carry·over supplies, lower sup·
port levels for many products, and the high level of produc.
tion in 1955, prices received by District farmers-as evi·
denced by Texas midmonthly farm prices- continued to
weaken and averaged about 2 percent below the 1954 aver·
age, with livestock prices registering the greatest decline.
Moreover, production costs rose substantially above those of
the previous year. Outlays for replanting, higher labor and
equipment costs, and more intensive applications of fertilizer
added to out·of·pocket expenses. For ranchers, the cost of
providing supplemental feed made livestock operations more
expensive. As a result of these increased costs, net farm in·
come was not as satisfactory as the large marketings would
indicate.

DEPARTMENT STORE SALES
ElEVENTH FEDERAL RESERVE DISTRICT

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over inventory buying, consumer demand was so strong that
inventories rose more slowly than sales. At the manufacturers'
level, shortages of basic raw materials also retarded inven·
tory accumulation.
Department store sales in the District established a new
record in 1955 and were nearly 8 percent above those of
1954; the strongest demand centered upon consumer duro
ables, which showed a year·to·year gain of about 15 percent.
Soft goods sales were fairly steady until early fall, when an
upturn thrust the year· end total to a level nearly 6 percent
above that of 1954. Average month·end department store
inventories reached a new record in 1955, being 8 percent
more than those of 1954 and 2 percent more than the previous
record-established in 1953.
Total retail trade apparently was as strong as, if not strong·
er than, department store trade. New automobile sales in
four major cities in the District-Dallas, El Paso, Houston,
and San Antonio- increased nearly 45 percent above those

DEPARTMENT STORE STOCKS
ElEVENTH FEDERAL RESERVE: OISTRICT
(1947 49.100)

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Underlying these production movements was a broad and
rising demand for nearly all types of consumer goods. In the
Nation and in the Southwest, consumers were willing to buy
in increasing amounts the goods produced by the mines and
factories. Nevertheless, the liquidation of inventories in 1954
turned to an accumulation in 1955, although at a relatively
modest rate. While businessmen adopted fairly tight controls

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Consumption

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MONTHLY BUSINESS REVIEW

in 1954, compared with a nationwide gain of about 39 percent. Competition among dealers was very strong, thereby
reducing profit margins_ Moreover, the extension of consumer credit with unusually long maturities and low down
payments intensified the competitive efforts.
Scattered information on retail sales outlets in the Eleventh
District indicates that total sales increased slightly faster than
in the Nation. Sales at District gasoline service stations; automotive stores; and lumber, building materials, and hardware establishments increased much faster than those at
comparable stores in the Nation_ On the other hand, sales
at furniture, furnishings, and appliance stores; food stores;
and eating and drinking places in the Nation rose considerably faster than those in the District.
The demand for agricultural products showed some further
gain, but with large surpluses and substantial production,
demand was insufficient to maintain steady prices. During
1955, consumers continued to spend about one-fourth of their
incomes for food, and with higher average incomes, the total
expenditures for food were above those in 1954.
Demands for services were at record levels, and nearly all
businesses connected with the tourist industry reported excellent sales in 1955. Transportation companies, except local
transit firms, showed substantial increases in business, with
motor truck, barge, and tanker traffic reported as being very
heavy.
Employment, Income, and Credit

Employment conditions in the five states of the District
improved steadily throughout 1955, reaching a new record in
September and in each subsequent month of the year. Total
nonagricultural employment averaged nearly 3,895,400 workers in 1955, compared with 3,799,300 workers in 1954. Although all major categories of employment had shown some
improvement by the end of the year, the primary gains were
made in manufacturing, mining, trade, service, and govern-

NONAGRICULTURAL EMPLOYMENT

.•

FIVE SOUTHWESTERN STATES

IL.LIOfilS OF P[R SOh'S

WILI.. I O" S OF P[ ASO N

4 .0

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ment employment. Percentagewise, the greatest increases
were in finance, mining, and manufacturing employment.
The smallest gain was registered by transportation and utility
concerns .

The increase in government employment was primarily at
the state and local level. Federal Government employment
declin ed early in the year and then leveled out, except for
seasonal fluctuations. The gains in trade and service employment reflected the improved business conditions, as well as
the population and sub urbanization growth near the larger
metropolitan areas. Shortages of skilled workers were common by the end of the year.
Unemployment declined rapidly as workers found new
jobs in the expanding economy. In Texas, unemployment
decreased from a 1954 average of 128,500 to a 1955 level of
113,600, with all major labor market areas sharing in the
decline. The two markets classified as areas of substantial
surplus in 1954--San Antonio and Texarkana- made considerable improvement, although Texarkana remained a labor
surplus area.
The people of the Southwest and of the Nation received
higher incomes in 1955 than in any previous year. The average weekly earnings of southwestern manufacturing workers,
including substantial overtime payments, rose to a record
level of nearly $77 in the latter part of the year, or about 7
percent above those in 1954. The highest average weekly
earnings were in the durable goods and mining industries,
led by petroleum workers-whose earnings averaged in excess
of $100 per week in the last part of 1955. Average hourly
earnings of Texas manufacturing workers increased almost
5 percent during the year.
Cash farm income in 1955 declined nearly 5 percent compared with the previous year. However, it should be noted
that an increasing number of farmers held nonfarm jobs at
least part of the year, and income from such jobs was a valuable addition to their farm income_
A considerable increase in consumer credit supplemented
the generally rising level of income. Southwestern purchasers,
along with those in the Nation, bought more and more consumer durables on instalment credit and charge accounts at
retail establishments. At the end of 1955, consumer credit
outstanding at District department stores was about 8 percent above a year earlier, with instalment credit up 15 percent and charge account credit up 4 percent_ During the past
year, instalment sales at District department stores were
nearly 28 percent above those in 1954, and regular charge
accounts increased 6 percent.

1954

Banking and Finance

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The economic growth of the Southwest during 1955 was
stimulated and facilitated by a large increase in credit. Businessmen required more working capital to produce and distribute a larger volume of goods and also needed loans to
finance capital expenditures for plant and equipment. In

MONTHLY BUSINESS REVIEW

TOTAL LOANS AND INVESTMENTS
AND TOTAL DEPOSITS
MEMBER BANKS - ELEVENTH FEDERAL RESERVE DISTRICT
~~bllONSOFOOlL RS

"(lIOH! Of' DOL ~~8

8.0=:-"
.or-= ..... .... _

~r--=:: 8.0

1900

1"
--,.V:J...:.., ...........

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100.. _

' OEPOSITS -........ ) ,

- - __ !.-_-

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1... ..- .......

8.0

19S4

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of--I--+-+-L--+-+-I--+-+-1---1 7.0
190'
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I I

~ LOANS and INVESTMENTS I , ___(,,,,

.,-'r-i-r--

60'-.:1=
5.SJ

_--"'=+-1--+-+---16.0
1904

•

addition, the consumer used larger amounts of credit than
in any previous year to buy these goods and services.
The result of all these credit requirements was a very strong
loan demand at commercial banks in this District throughout
1955. Total loans and discounts at the end of November were
16 percent above those on the corresponding date in 1954.
Much of the increase was attributable to credit demands in
the commercial, industrial, and agricultural; rcal-estate;
and "all other" (primarily consumer) categories.
In view of near-c'apacity industrial production, shortages
of raw materials, narrowing margins of unused labor, strong
demands for credit, and developing inflationary pressures,
the monetary policy of the Federal Reserve System shifted
from one of ease at the start of 1955 to mild restraint in the
second quarter and, finally, to increasing restraint in the
closing 6 months. Four separate increases were made in the
Reserve bank discount rates, and System policies limited
the amount of reserves supplied through open market operations to meet seasonal demands for credit. Thus, member
banks had to rely more extensively upon borrowing from the
Federal Reserve bank to provide needed reserves. Most of
the pressure on bank reserve positions fell upon the larger
reserve city banks, which normally keep only a small amount
of excess reserves.
In meeting the loan demand, banks relied primarily upon
an internal shifting of assets, since deposits increased very
little. Total loans and investments evidenced only a moderate
gain, as an increase in loans was largely counterbalanced by
a decrease in investments. When excess reserves declined and
credit demands continued, banks liquidated investments,
especially short-term Government securities holdings. At the
end of November, total investments of member banks were
nearly 8 percent below a year earlier, with holdings of Government securities down 11 percent while holdin gs of other
securities increased 10 percent.
At the same time that they liquidated investments, banks
also drew down cash and balances at the Federal Reserve and

other banks. Most of the decline came as a res ult of the withdra wal of interbank deposits, which decreased more than 10
percent. One result of these moves to meet the loan demand
was a decline in liquidity. Many large banks used all their
excess reserves and had to borrow from the Federal Reserve
System in order to maintain the required level of reserves.
Borrowings by member banks expanded sharply during 1955,
with the larger banks accounting for most of the increase .
While the lotals of the major banking measurements portray most of the significant changes during the year, a breakdown of loans, investments, deposits, and capital accounts
reveals certain other important developments. The strong
loan demand by business firms was highlighted by the requirements of trade and sales finance concerns, although
petroleum, coal, chemical, and rubber; food and liquor; and
textile and apparel manufacturers and utilities also expanded
their credit demands substantially.
Changes in investment portfolios were selective during
1955; short-term Government holdings generally were liquidated, while holdings of intermediate· and long-term Government securities were fairly stable and holdings of other
secu rities increased. Most issues of intermediate- and longterm bonds sold below par much of the year, and for that
reason, banks were reluctant to dispose of them.
Total deposits of member banks at the end of November
1955 showed less than a I-percent rise from a year earlier,
with demand deposits down nearly 2 percent although time
deposits gained more than 14 percent. An increase in demand
deposits of individuals, partnerships, and corporations was
offset by decreases in demand deposits of other banks and
the United States Government. However, deposit turnover
was more rapid in 1955, indicating a more intensive use of
available funds.
Another significant change in banking measurements was
the marked increase in capital accounts during the past year.

TOTAL LOANS AND TOTAL INVESTMENTS
MEMBER BANkS - ELEVENTH FEDERAL RESERVE DISTRICT
(lILLIONS OF DOll ""'5

8 1LLIONS Of' OOLL il.RS

4.0

MONTHLY BUSINESS REVIEW

The renewed economic growth of the Southwest and the
especially high demands for credit induced a large number
of banks to expand their capital structures. Capital accounts
of member banks in this District increased 12 percent from
November 1954 to November 1955. While both large and
small banks increased their capital structures, the most
substantial gains were at the larger reserve city banks.

Summary and Outlook

In considering the possibilities of economic development
during 1956, a number of current trends affecting the entire
economy need to be weighed carefully. The inAationary pres·
sures which developed in the latter half of 1955 seem likely
to continue into 1956. With a number of basic industries
operating near capacity and with shortages of most basic
raw materials, as well as other factors of production, a further
5ignificant expansion in the physical output of goods and
services cannot be expected in the first half of 1956. On the
other hand, with a possibility of tax cuts, a rise in the minimum wage. and general increases in most wages, the purchasillg power of individual consumers is expected to expand, thus
creating further demands upon these short supplies. In addition, the increasing level of plant and equipment expenditures will mean a further drain upon basic raw materials and
labor.

However, it should be noted that there are some possibilities of a developing weakness in the economy. A sharp upturn
in the rate of inventory accumulation, a continued decline
in residential construction, or a further weakening of the
agricultural situation could create other destabilizing influences which might disturb the balance within the economy.
Nevertheless, at the present time, it appears that the other
factors in the economy are sufficiently strong to outweigh
these potential weaknesses. In consequence, the economy
probahly will be faced with problems of further increases in
wages and prices and other inAationary pressures, rather
than difficulties of a deflationary nature.
In the Southwest, although these trends will set the general economic environment, other trends may be of equal
significance to the regional economy_ The dronght, acreage
allotments, and declining agricultural price problems are of
particular importance in the Southwest, and with the large
crop surpluses, it seems unlikely that either of the latter two
will be corrected this year. The construction picture for the
Southwest is not markedly different from that of the .Nation
except in the nonresidential fields, where continued industrial
growth is expected to cause a somewhat brighter picture for
this area. In fact, the only major differences in outlook
between the Southwest and the Nation appear to be a more
concentrated effect of the agricultural conditions and an offsetting element of growth in industrial, commercial, and
service industries.

·s

MONTHLY BUSINESS REVIEW

REVIEW OF BUSINESS, AGRICULTURAL, AND FINANCIAL CONDITIONS

Christmas buying at Eleventh
District department stores in
1955 increased moderately
above the record-high Christmas volume of 1954. Novem ber department store sales were 4 percent above
those of November 1954 but showed a less than
seasonal gain of 2 percent over October. Inventories
at the close of November were 13 percent above a
year earlier, and orders outstanding were up 12
percent.
Moisture is needed in much of the District. The
1955 cotton crop in the District states is placed at
6,025,000 bales, or about the same as output in
1954. Cash receipts from farm marketings in the
District states during the January-October period in
1955 totaled $2,292, 164,000, or 8 percent less
than in the same months in 1954.
The sharply rising demand for heating oil, stimulated by markedly colder weather, caused a moderate increase in crude oil production and a decline
in crude stocks during December. Texas oil allowabies for January are unchanged from the midDecember level, but total production should increase
as new wells are brought in. Refinery activity in the
District in December was down slightly from the
November level.
Total nonagricultural employment reached its third
successive monthly record during November at
3,966,800 workers. The major gains were associated with seasonal increases in trade and government employment. Manufacturing employment rose
to 736,600, with transportation equipment and
food-processing manufacturers accounting for most
of the gain.

Christmas b uying at depar tment
stores in the Eleventh Feder al Re·
serve Distr ict, stimu lated by the
higher Icvel of incomcs a nd ri si ng
employment, increased moder ately
above the reco rd volume of the 1954 Chr istmas season . With
one more shopping day during Christmas week in 1955 than
in 1954, sales reached an all-time high.
The rush of Christmas business at department stor es began
dur ing the f irst week of December, when the daily average
sales volume r ose 55 percent above the p revious week. Christ·
mas buying during the week ended D ecem ber 17 was 5
percent more than the former recor d sales volume established
dur ing th e comparable week in 1954.
Department store sales in the District in November showed
a small increase over the gener ally hi gh vo lume of the pre·
vious mon th, but the rise was less than had been evident fr om
October to November in other r ecent years. The doll ar sales
volume was 2 percent higher than in October and was 4 percen t higher than in November 1954. Refl ecting a less than
seasonal gain , the adj usted in dex of sales declined fr om 138
in October to 136 in Novem ber, compared wi th 131 fo r
November 1954.
Sales of most consumer durable goods items in November
continued to run substantially above the 1954 volumes. Sales
of domestic fl oor coverings showed the pr incipal gain, rising
18 percent above the year·earlier level. Major househol d appli .
ances showed a year· to· year sales increase of 17 percent ;
furniture an d bedding, a 12·percen t increase; and television
sets, radios, and phonographs, a 3·percent increase.
RETAil TRADE STATISTICS
( Percentage cha nge)

NET SALES
Nov. 19S5 f rom
Line of trQd e

by a rea

District construction activity increased in Novem ber, with the value of total awards 9 percent above
the October level. Residential awards were down 20
percent, while "all other" awards rose 27 percent.
Cumulative total awards through November were
21 percent higher than in the comparable period of
1954.
Gross loans of District weekly reporting member
banks increased 1 percent during the 4 weeks ended
December 14, with loans to banks and " all other
loans" showing the largest gains . Total investments
declined 5 percent as holdings of Treasury bills, certificates, and notes were reduced. Bank debits and
deposit turnover held steady in November.

DEPARTMB'-IT STORES
Total Seventh District •••• . ••• • • • •
Corp us Chrilti •• • ••••••• • •• • ••• ..
Da llal •••..••••••••••• • ••••••• •
EI Palo •...•••.••••••••• •• • ••••
Fort Worth •••• . • . •• . ••••• • • • •••
Houston •••••••••• • •• •• •.•••• ..
Sa n Antonio •• ••• • ••• ••. •• •• • •.•
Shreve port, la . •• ••.••• • ••.•.• . •
Waco • • •••• . • • •••••••••••• • .. .
O ther cities • ••••••••• •• • ..• •• . •
FURNITURE STO RES
Totcl Eleventh District ••••••••• • ••
Amarillo •••• • •• . •••• .. • • •• . ••. •
Austin .• ••• • •• • •••••••••••••. . •
Da llas ••••••••••••••••••••••.•.

HOlJSton ••••••••••••••••• • ••• ••
l ub b ock •.••••• .... • .• • .•.. • . • .
Port Art hur . ....•. . . . ••.••••••••
San Antonio . . ..•• .. ••..•.•••..•
Shreve p o rt, La .•• • •.• . ••• • ••• • ••
Wrchito Fa lls •• . ••...••. . .•. .. .•
Other cities ••••••. • •. . • • •••.•••
HOUSEHO LD APPUANCE STOR ES
Total Eleventh District •••••••••• • •
Dallas • • • • • •• • ••••.••••••••••••
I

Stocks at e nd of month.

Nov.

Oct.

195 4

1955

2
-1 2
5
- 5
13
2
- 2

_ 4

•2
6
5
I

5
8
7
9
13
18
I

17
- 9
6

-u

-I

- 3
0
-3
_5
0
- 13

-.-.
I

18
10

7
-1 0
0

3
0

-2

STOCKS I

II mo. 1955
cam p . with

Nov. 1955 f rom
Nov.

Oct.

1954

1955

13
33
19

3
5
5
_5

12
12

mo. 195 4

9
10
8
7
7
6
13

•9

"
..
18

"
16

15
17

13
10

-II

9
8
15

10
- 7
6
13

....
2

-...
0

- I

3
0
3
-1 2
8
0
2
6
- I

MONTHLY BUSINESS REVIEW
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
[1947-49

Area

a year earlier but were down 15 percent from October. New
car sales in the four cities for the January-November period
in 1955 were 405 percent more than in the comparable period
of 1954.

= 1001

UNADJUSTED
Nov.

ADJUSTED I

Sept.

Hov.

Nov.

Ocr.

Sept.

Nov.

140
165

131
131
149

149
146
168

136
132
154

138
130
160

131
125
147

131
127
147

167p 162

155

148r

151p 147

146

133

Ce'.

1955 1955 1955 1954 1955 1955 1955 1954-

SALES-Daily overage
Eleventh District • . ..• . ...•••

Dallas ......... ..•. ...... .
Houston •.. • . •.. • •. • •.•.•.

STOCKS-End of month
Eleventh District . ...........

155
152
175

146r

Adjusted for seasonol variotion.
r-Revised.
p-Preliminart.
I

In the soft goods departments during November, sales of
piece goods and household textiles made the strongest showing, with a 4-percent gain over those of November 1954.
Sales of women's and misses' ready-to-wear apparel and accessories were up 3 percent and 1 percent, respectively. On
the other hand, sales of men's and boys' wear and small wares
did not change from the year-earlier levels_
Instalment sales during November declined 5 percent from
October but were 21 percent above those in November 1954.
However, cash and charge account sales increased 3 percent
and 9 percent, respectively, from October and were slightly
higher than in November 1954.. The proportion of instalment
sales to total store sales rose during 1955 and in November
was 13 percent, compared with 11 percent a year earlier. The
increase in the proportion of instalment sales has offset the
reduction in the proportion of charge sales, which was down
to 55 percent in November, compared with 57 percent in
November 1954.
Charge accounts receivable at department stores followed
tl,e usual pattern during November, rising 8 percent above
October, and at the end of the month were 4 percent above
the amount outstanding on the same date of 1954. Instalment
accounts showed little change from October but were 15
percent above a year earlier.
Department store inventories rose 3 percent during N ovember to reach another new high and were 13 percent higher
than on the corresponding date of 1954. Orders ou tstanding
declined 3 percent during November, in line with the pattern
which normally prevails at this time of year. At the end of
November, however, orders outstanding were 12 percent
higher than a year earlier, as compared with a 21-percent
year-to-year gain at the end of October.
Sales at District furniture stores during November continued to show a substantial gain over a year earlier, with a
9-percent increase over November 1954, but were down 3 percent from October 1955. Inventories at the end of the month
were 1 percent less than in October but were up 4 percent
from the year-earlier figure. Accounts receivable at the close
of November were 16 percent above those of a year ago, while
collections showed an increase of 19 percent.
Registrations of new cars during November in Dallas, Fort
Worth, Houston, and San Antonio were up 18 percent from

Field work is seasonally slow in
most parts of the District except the
winter vegetable areas of south
Texas and the late cotton-growing
regions of west Texas, New Mexico,
and Arizona. Harvesting in these cotton regions is virtually
complete. During the first part of December, rains and snow
fell over many sections of the District, with the largest
amounts occurring in the eastern third. Only light and ineffectual precipitation was received in the western parts of the
District.
Small grains, winter legumes, and pastures responded to
the improved moisture conditions in the eastern sections of
the District; but strong, dry winds have dissipated much of
the moisture. Rain is especially needed in north and northeastern Texas to maintain development of these crops. Crop
and weather conditions in the High Plains area of Texas and
New Mexico are following a pattern similar to that which prevailed during the fall of 1954. Winds depleted the moisture
provided by light snows early in December, and recurring
freezing and thawing, winds, and blowing dust are combin ing to damage wheat. In many northern Plains counties,
fields are being chiseled to retard soil erosion.
Commercial vegetables in south Texas-particularly
hardy-type vegetables and early spring onions-are making
good progress. Moisture conditions remain favorable, and
most of the crops have escaped damage from low temperatures. Cabbage, cauliflower, and spinach are being shipped;
and citrus fruits are moving in volume, with a substantial
part of the shipments in mid-December comprising gift packages for the holiday trade.
In the Nation the 1955 cotton crop is forecast, as of December 1, at 14,,663,000 bales, or 180,000 bales below the monthearlier estimate but 7 percent larger than production in 1954,
according to the United States Department of Agriculture.
Cotton production in the District states in 1955 is placed at
6,025,000 bales, or 4 percent below the November 1 estimate
and 7,000 bales less than output in 1954.. The reduction from
the November 1 estimate occurred primarily in the High
Plains area of Texas, where yields were considerably below
preharvest expectations. The estimates for Louisiana, New
Mexico, and Texas showed declines from a month earlier,
while the forecast for Oklahoma was unchanged and the Arizona estimate was increased slightly.
In Texas the 1955 cotton crop is forecast at 4,025,000 bales,
or 5 percent below the November 1 estimate but 2 percent
larger than production in 1954. With less favorable crop
prospects in the High Plains area, the estimated average yield
per harvested acre for the State is placed at 2~2 pounds-2~
pounds below the November 1 forecast but 3/ pounds mor~
than in 1954. It is estimated that all crop reporting district~

MONTHLY BUSINESS REVIEW

COTTON PRODUCTION

CITRUS FRUIT PRODUCTION

Texas Crop Reporting Districts

(In thousands of boxes)

(In thousand, of bales-SOO lb . gron wi. )
Average of
10 seasons

1955

1955
Indicated
December 1

1954

1953

1954

8·N ...•.•.....• •••• ...... •.
8·5 ..•••.•....•...•••..•..•
9 •••• .•.•.•..•..........•.•
10·N . •.•.••.••••.•••• ..• ••
10·5 .•.......... •.•..... ...

405
1,005
270
255
21
640
145
9S
270
32
160
69
235
36
387

512
1,098
221
180
20
448
75
74
261
25
142
218
192
67
407

548
835
U3
285
39
1,101
136
119
253
39
215
76
238
32
258

79
92
122
U2
105
143
193
128
103
128
113
32
122
54
95

State ...•.. .•• •.•..•..• .•

4,025

3,940

4,317

102

Crop r.porting district

I.N .... .......... • •........
1·5 • .•• ...•.••.•.••••.•....
2·N .•. •.....••••• • •••.•.• • .
2·5• ..•. ..•.•..•..•••••...•
3 •.••..••. •••• ••••• ••••••••
4 ..••• ..•.. • •.• • ••• • •. • ••..
5·N ••.•... • . .••••.••••••.••
5·5 •.•.• •••. •• •.•••••••••..
6 .•••.. . ••.••• •• •••.••••• ••
7 •.•..•.•...•• •••.•.•.• . •.•

Indicated

Slate

as pel'(enl of

1955·56

1954-5 5

1953·5'

ended
1944·53

ARIZONA

SOURCE, United States Department of Agriculture.

in Texas except Districts 1, 8·S, and 10 produced more cotton, with higher yields, during 1955 than in the previous
year.
In the Nation, cotton ginnings prior to December 1, 1955,
totaled 13,052,006 bales, or 5 percent more lhan during the
same period in 1954, according to the United States Department of Commerce. In the District states, 5,149,153 bales of
cotton had been ginned prior to December 1, or 2 percent
fewer than a year earlier. Approximately 85 percent of the
1955 cotton crop had been ginned by December 1. In the
Nation, approximately 89 percent of the cotton had been
ginned.
The production of winter vegetables in Texas during the
1956 season is estimated, as of December] , 1955, at 7 percent above output in the previous season and 21 percent more
than the 6-year (1949-54) average, according to the United
States Department of Agriculture. Although the estimated
acreage of principal winter vegetables is only slightly larger
than it was a year earlier, higher per acre yields are indicated
for most of the vegetable crops,

Oranges. .... . . . . .........

1.000

1,02"

2.~OO

1, 130
2,470

1, 170

Grapefruit . ......... . . ... ,
LOUISIANA

2,670

3.119

Oranges . ... ..... . . .. .....

215

175

100

257

1,800

1,500
2,500

900
1,200

2,946
11,980

TEXAS

Oranges ... . . ... .. . ... .. , .
Grapefruit.. ......... . ....

2,200

SOURCE: United States Department of Agriculture.

Livestock remain in fair to good condition throughout
most of the District. As of December 1, ranges in all of the
District states were improved from a year earlier, according
to the Department of Agriculture. As a result of the improvement in ranges, cattle and sheep are in better condition than
they were at the same time a year earlier. Although supplemental feeding is increasing, ranchers generally are feeding
less as compared with the fall of 1954. During December,
additional cattle were removed from dry-land wheat pastures
in the High Plains, and most of the livestock remaining on
wheat pastures are being grazed on irrigated fields. Pasture
feed is short in the Plateau area and in a few counties in south
Texas, where ranchers are burning prickly pears for feed.
Receipts of cattle, calve!, and sheep on local southwestern
markets during November and the first part of December
were sharply below those during the same period a year
earlier. Marketings of cattle and calves from Oklahoma,
Texas, alld New Mexico during the peak fall shipping months
of October and November 1955 were smaller than in the
same months in 1954.
The index of prices received by Texas farmers on November 15 was 250 percent of the 1910·14 average, or 1 percent
below the mid-October index and about 4 percent lower than
a year ago. The crop index increased about 2 percent from
mid-October. while the livestock index declined 4 percent.
Lower prices for cattle, calves, and hogs contributed heavily
to the decline in the livestock price index. Subsequently,
grain prices on local southwestern markets have shown slight
seasonal increases, while cattle prices have shown mixed
trends. Hog prices through mid-December werc generally
below month·earlier levels.
Cash receipts from farm marketings in District states during the January-October period in 1955 totaled $2,292,164,000, or 8 percent below the same months in 1954, according
LIVESTOCK RECEIPTS
(Number)
FORT WORTH MARKET

CROP REPORTING
DISTRICTS OF TEXAS

No ....

Closs

1955

195~

Cattle . • ....... .
Colves • . .. .... .

59,709
18,12 3
72,696
,(5,642

80,77.4
29,734
.49,594
60,353

Hags .••....... ,
Sheep •• . •. .. .. .
I

Includes gogts.

0".
1955
72,4 07
22,3~6

60,022
58,903

SAN ANTONIO MARKET
Nov.

1955
28,525
23,011

2,179

114,399

Nov.
195.(
35,~"O

3 1,853
2,14 1
116,33 9

Oct.

1955
39,036
28.51 7
3,826
12.4,845

MONTHLY BUSINESS REVIEW
CASH RECEIPTS FROM FARM MARKETINGS
(In thousands of dollors)
September
Area

1955

1954

October

1955

January-October

1954

1955

1954

Arizona .... $ 14,136 $ 19,528 $ 25,207 $ 36,902
45,406
louisiana ...
55,332
63,786
60,701
8,565
New Mexico.
11 ,090
36,188
41,919
Oklahoma ..
44,783
52,771
66,975
55,022
Texas .. .... 177,101
194,061
243,840
219,843

$ 212,744
2.47,989
1,338,438

248,603
272,359
128,175
457,915
1,380,223

$332,782 $435,996 $414,387

$2,292,164

$2,487,275

Tota l..... $289,991

117,979
375,014

SOURCE; United Slates Department of Agriculture.

to the United States Department of Agriculture. Receipts
from crops were 12 percent smaller than a year earlier, and
those from livestock were 3 percent less. In the Nation, cash
receipts from farm marketings during the first 10 months of
1955 were about 3 percent below those in the same period a
year ago.
FARM COMMODITY PRICES
Top Prices Paid in Local Southwest Markets

Demand deposits of District weekly reporting member
banks diminisbed $73,094,000 during the 4-week period,
mainly because United States Government balances in the
amount of $55,201,000 were withdrawn. The other principal
declining deposit accounts included local government balances and bank drafts, which decreased $16.348,000 and
5.37,064,000, respectively. The accounts of individuals and
business firms grew $21,269,000. During the 4 weeks, time
deposits rose $18,696,000 and were $142,829,000 higher
than on the corresp on ding date in 1954. Total deposits
showed a monthly decline of $54,398,000 but a year-to·year
increase of $46,943,000. The banks were using $34,950,000
of borrowed funds on December l4., in contrast to $5,500,000
on November 16.
The data on all District member banks disclose a monthly
increase of $104,743,000 in gross demand deposits in November. At reserve city banks, gross demand deposits declined
nominally from the October level and were $63,591,000
below the November 1954 total. The District country banks
recorded an increase of $107,725,000 in gross demand
deposits between October and November, but the November

Comparable Comparab le

week,
Week ended
Commodity and market

COTTON, Middling 15 / 16-inch, Dallas ....

WHEAT, No.1 hard, Fort Worth .••..•..•
OATS, No.2 white, Fort Worth .••.••••.•
CORN, No.2 yellow, Fort Worth .•..•....
SORGHUMS, No.2 yellow, Fort Worth .•.•
HOGS, Choice. Fort Worth . .. .....•••...
SLAUGHTER STEERS, Choice. Fort Worth •..
SLAUGHTER CALVES, Choice. Fort Worth .•
STOCKER STEERS. Choice, Fort Worth ....•
BROILERS1 south Texas ...... ... .........

Unit 018(.20, 1955
lb.
bu.
bu.
bu.
cwt.
cwl.
cwl.
cwl.
cwl.
lb.

.3350
2.44
.90
1.62Yl

2.24
12.00
21.00
19.00
19.00
.20

pre ...lous
month

.3405
2.39'4
.88
1.52
2.12
13.25
21.00
19 .00
19.00
.24

week,
previous

year

.3380
2.70~

CONDITION STATISTICS OF WEEKLY REPORTING
MEMBER BANKS IN lEADING CITIES
Eleventh Federel Reserve District

1.04 '4
(In thousands of dollors)

1.87Y2

2.75
19.00
25.00
20.00
21.00
.20

On December 14 the net earning
assets of District weekly reporting
member banks totaled $3,845,691,·
000, reflecting a decrease of $41,.
327,000 since November 16, but
gross loans were up $25,769,000. All of lhe loan accounts
were higher, with loans to banks showing the largest monthto·month gain of $10,506,000. Commercial, industrial, and
agricultural credits registered an increase of $6,424,000. The
reporting banks lent an additional $1,316,000 for real estate
and $5,693,000 to consumers and others included in the "all
other loans" category. Brokers' loans and other credits for
purchasing securities rose $957, 000 and $873,000,
respectively.
Each of the investment classifications was below its Novem·
ber 16 level. The banks decreased their Treasury bill and
certificate holdings very sbarply, the combined reduction
being $41,429,000. In view of their current relatively low
level, these assets probably will continue to show rather
prominent month·to-month variations compared with total
holdings, depending upon the banks' reserve positions and
the demands for credit. The weekly reporting banks dimin·
ished their stock of Treasury notes by $13,984,000 and United
States Government bonds by $5,791,000. Other securities
declined $5,461,000.

Item

Dec. 14,
1955

Dec. 15,
1954

Nov. 16,
1955

ASSETS
Commercia l, industrial, and agricultural loans •• • $1,588,705 $1,439,680 $1,582,281
16,936
15,817
15,979
Loans 10 brokers and dealers in securities . ....•
Olher loans for purchasing or carrying securities.
117,533
102,689
116,660
210,964
166,844
209,648
Real·estate loons ...... ...... .. ........... .
14,065
12,429
3,559
loans to banks .... . .... ... . ............ ..•
534,219
416,154
528,526
All other loans .. . ..... . ....... . ... .. . • . • ••
Gross loons •••.••••••••••••••••••••••••
Less reserns and unallocated charge·off, ..

2,482,422
25,568

2,153,613
18,040

2,456,653
25,137

141,460
245,518
900,491
227,774

64,192
255,750
828,723
246,505
1,455,502
435,018
455,687
1,761
46,037
571,931
142,332

--2,135,573 2,431,516
-129,088
-- -60,332

Net loans . .... .•. . ....•...... . .....•...

2,456,854

U. S. Trea sury bills ..•• ..... . .......• . .... ..
U. S. Trea sury certificates of indebtedness ..•. .•
U. S. Trea sury notes ...... . ....... .. ....• • . •
U. S. Government bonds (inc. gtd. obligationl).••
Other securities .. ..................•....••

42,601
40,494
241,766
822,932
241,044

Total inveitmenfl . ..•.••.•..........•....
Cash items in proceu of collection . . •....••.. .
Balances with banks in the United States ... .•..
Balances with banks in foreign countries ..•.. . .
Currency and coin ........................•
Reserves with federal Reserve Bank .••• ...• ..•
Other auets .••. ....................... ...

1,388,837
431,983
475,161
2,128
52,554
566,276
144,733

1,644,331
364,844487,720
2,174
48,463
613,390
120,506

TOTAL ASSETS •••.•••••.••••••.•..•••

5,518,526

5,417.001

-5,539 784

LlA81L1TIES AND CAPITAL
Demand deposits
Individuals, partnerships, and corporations....
United States Government • ..............•
States and political subdivisions ..•....•...•
Bonks in the United States ..••.. .... ..•....
Banks In foreign countries .. ..... ... ... .•. .
Certitled and officers' checks, etc....•. ..•..

2,862,338
49.936
186,590
955,522
16,567
67,275

2,826,799
125,903
178,885
1,021,307
14,395
66,825

2,841,069
105, 137
202,938
939,086
18,753
104.339

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

4,138,228

4,234,114

4,211,322

Time deposits
Individuals, partnerships, and corporations .•.•
United States Government . ..............•
POltal savings ...•............ ....•. ••••
Stotes ond politica l subdlvl'slons ... . ...•.•.•
Banks in the U. S. and foreign countries • . .•• .

710,922
11,874
452
142,449
2,025

612,234
13,369
451
97,861
978

701,972
11,874
452
132,703
2,025

Totol time deposits .. ..... . ........... .

867,722

724,893

849,026

Total deposits . .. •......... ... ..•. . .
Bills paYable, rediscounts, etc ...•... .. . .. .• . •
All other liabilities ..............•..•.......
Toiol ct:lpilt:ll t:lccounfs .....••.••.•..........

5,005,950
34,950
70,312
407,314

4,959,007
29,500
70,587
357,907

5,060,348
5,500
66,674
407,262

TOTAL liABIlITIES AND CAPiTAL •.• . OW"

5,518,526

-5,417,001

5,539,784

MONTHLY BUSINESS REVIEW

BANK DEBITS, END·OF·MONTH DEPOSITS
AND ANNUAL RATE OF TURNOVER OF DEPOSITS

CONDITION STATISTICS OF ALL MEMBER BANKS
Eleventh Federal Reserve District

(Amounts in thousands of dollorsT

(In millions of dollars)

hem

Nov. 30,
1955

Nov. 2.4,
1954

Oct. 26,
1955

$3,892
2,345
570
969
148
1,009
2

$3,351
2,649
519
1,050
132
1,137
2
352
170

$3,782
2,373
572
968
142
950
2
'02
195

DEBITSI

ASSETS
lOClns and dlscounh ••••••••••••••••••••.••••••

United Stale, Gonmment obligations •••••••••••.
Other securities •••••• • • • ••••••••• •• • • ••• • ••••
Reserv •• with Federal Reserve Bonk ••••••••••••••
Cash in vault e •••••• • •••• • ••• •• •••••••••• • •••

Bala",., with banks In the Un1t.d Slat.s •...•••...
Balance. with banks in foreign countries' ••••••• ••
Cash items in prOC8U of collection •••••••••••••••
Other oneue •••.•.•.•.••••..•.....••••••....

199

TOTAL ASSETS- ••• • • • ••••• •• ••• •• •• •• •••• •

9,362
1,002
6,381
1,287

1,121
6,394
1,1 23

1,00 1
6,315
1,267

Total deposits •• •••••••.•••• •• ••••• ••••• • • •
Borrowlngs e ••••••••• •••••••••••.•••••• •• •• ••
Other lIabllltiese ••••• •••••• • •••••••• • • ••• ••• •
Total capitol accounts- • •••••••• •••. • •••••• ••••

8,670
96
82
700

8,638
20
79
625

8,583
34

TOTAL LlABILInES AND CAPITAL-... .. .......

9,548

9,362

9,386

Are a
ARIZONA
Tucson •••••. ••••..••
LOUISIANA
Monroe •••••••••••••
Shreveport ••• •••••••
NEW MEXICO
Roswell •••••••••••••

TEXAS

L1A81L1TIES ANO CAPITAL
Demond deposih of banks •••••••••••••••••••••
Other demand deposits •••••• • .••••• •• ••.••••• •
Time deposits •••• • •••• •• ••••••••••••• ••••••••

7'-

695

Estlmat.d.

total was only slightly above that of a year earlier. The
monthly change 111 time deposits at all member banks m
November was an increase of $14,456,000.
The November records of reporting banks in 24 District
cities indicate virtually no change in total debits to deposit
accounts from the preceding month but a 12.percent increase
from a year earlier. Individual cities, as usual, exhibited
variations around the District trend, The range of monthly
fluctuations for each city is affected by economic conditions
and money flows peculiar to the reporting cen ter; hence, the
District total is probably a more reliable guide in evaluating
monthly changes in deposit activity. For the 24 centers, the
rate of deposit turnover in November was 19.1, compared
with 19.2 in October and 17.9 in November 1954.
In the 4 weeks ended December 14, member bank reserve
balances declined $16,858,000; for the year to date, they had
decreased $38,071,000. The transactions having the largest
quantitative influence in the period arose from interdistrict
money flows, which resulted in a net movement of $122,737,000 of funds away from the District, and Treasury operations, which increased member bank reserve accounts by
$87,932,000. Changes in local Federal Reserve creditnamely, float and member bank borrowing- added $16,·
922,000 to reserve accounts. These accounts were expanded
further by the net return of currency amounting to $1,118,000,

DEPOSITS'

Percentage
change from

Abilene ............ .
Amarillo ••• •••••••••
Austin ••••••••• ••• • •
Beaumont ••••.••••••
Corpus Christi ••••.•.•
Corsicana • •• ••••• • • •
Dallas •• • •..•••• .•• •
EI Paso • ••• • ••••• •. •
Fort Worth • •• •• .. •. .
Galveston ••••.••••• •
Houston ••••• ••••• ••
Laredo ••••••.•.••••
Lubbock ••••••••••••
Pori Arthur •••••••••.
San Angelo •• • •.••• •
San Antonia ••.••••..
Texarkana ' •••••• •.•
Tyler .............. .
Waco • • •• • ••••• ••••
Wichita Falls ••..••••

November
1955

137,823

Annual rate of turnover

Nov. Oct.
1954 1955

-1

Nov. 30,
1955

99,212

17.0

16.1

17.4

15.6
15.0

13.2
14.4

16.2
15.5

13.2

11.9

12.7

62,384
236,011

26
12

0
-3

48,512
188,988

30,431

•

27,798

73,375
159,015
129,841
131,648
160,174
15,111
2,055,169
241,829
599,466
78,019
1,981,107
20,341
159,510
53,543
43,668
446,277
19,394
69,881
86,257
101,524

TOlol-24 cities ••••••• • $7,091,798

9
7
13
-2
15
- 7
7
6
I
-3
24 -12
11
-2
9
7
15
0

-1

14
-3
14

-1
22

-1

10
14
12

-1
_1
1

-6

Nov. Nov. Oct.
1955 1954 1955

68,417 13.8 14.3 13.9
108,975 17..4 15.S 17.9
116,357 13..4 12.0 14.3
106,129 15.1 14.5 14.9
111,314 17.4 15.6 18.2
22,413
8.2
6.8
9.4
993,860 24.7 23..4 '24.8
130,963 22.3 '21.0 21.0
374,060 19.4 17.9 19.9
71,618 13.0 13.1 13.2
1,196,594 19.7 18.2 19.9
19,386 12.6 12.1 12.7
94,431 20.6 21.4 17.6
46,157 14.0 14.3 14.2
45,900 11.4 10.3 11.6
345,059 15.5 15.0 15.6
17,79113.111.913.3
57,224 14.8 13.3 14.8
68,972 14.8 1.4.4 15.8
105,371 11.6 10.3 10.8

$4,465,501 - 19.1

17.9

19.2

1 Debits to demand deposit accounts of Individuals, partnerships, and corporations and
of slates and poUtical subdivisions.
I Demond deposit accounts of Individuals, partnerships, and corporations and of states
and political subdivisions.
• These flgures include only one bank In Texarkana, Texa s. Total debits for all banks in
Texarkana, Texas·Arkansas, including two banks located In the Eighth District, amounted to
$41,990,000 for the month of November 1955.

The Federal Reserve Bank of Dallas owned $1,009,075,000
in earning assets on December 14, representing a growth of
about 40,000,000 since November 16. The volume of memo
ber bank discounts, which fluctuated within wide limits in
the 4 weeks, expanded to $30,415,000, reflecting a $22,719,000 increase. Federal Reserve notes of this bank in actual
circulation rose $5,132,000.
The United States Treasury refinanced $12,213,000,000 of
the Federal debt, consisting of the 114 -percent certificate
and 1% ·percent note maturing December 15. These securities
were replaced by a 2%'percent certificate maturing Decem·
ber 1, 1956, and a 2% -percent note expiring June 15, 1958.
Maturing securities amounting to $847,438,000 were reo
CHANGES IN FACTORS AFFECTING MEMBER BANK RESERVE BALANCES
Eleventh Federal Reserve District
(In thousands of dollau)

GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
CHANGEI

Eleventh Federal Reserve Oistrid

4 weeks ended
Dec. 14, 1955

(AVerages of daily figures. In thousands of dollars)
COMBINED TOTAL
Dole

Gross
demand

Time

RESERVE CITY 8ANKS

Gross
demand

Time

COUNTRY BANKS
Grass
dem and

Time

Nov. 1953., •• $6,948,849 $ 936,1 75 $3,369,875 $516,162 $3,578,974 $420,013
Nov. 1954 •••• 7,46.4,379 1,126,793 3,650,354 635,036 3,814,025 491,757
July 1955 •• •• 7,218,169 1,273,'23 3,545,239 753,896 3,672,930 519,527
Aug. 1955 • • .• 7,144 ,992 1,276,939 3,'80,158 755,28' 3,664,834 521,655
Sept. 1955 .... 7,195,579 1,27 1,089 3,517,182 748,666 3,678,397 52'2,.423
Oct. 1955 . ... 7,304,808 1,260,749 3,589,745 736,233 3,715,063 524,516
Nov. 1955 .. .. 7,409,551 1,275,205 3,586,763 7'7,023 3,822,788 528,182

FACTORS
Federal Re$er~e credit-local ............... . .. .
Interdistrict commercial and flnancial transactions •••
Treasury operations ••.•....•••••••••.•.•.•.•.•
Currency transactions ......................... .
Other deposIts at Federal Reserve Bonk •••.••••••
Other Federal Reserve accounts •• ...•• •• ••.. ..••

RESERVE BALANCES
November 16, 1955. ......... . . .
December 1.4, 1955.............

$985,298
$968,440

lSign of change indicates effect on reserve ba lances.

+5 16,922
- 122,737
87,932
1,118
203
110

Dec. 29, 195.4_
Dec. 14, 1955

5,650
597,092

+
+
+

-$ 16,858

-$ 38,071

+ 526,881
+ 15,183
629
+ 11,936

MONTHLY BUSINESS REVIEW

CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS

CRUDe OIL, DAILY AVERAGE PRODUCTION

lin thousands of dollorsl

lin thousands of barrels}

Item

Dec. 14,

Dec. 15,

1955

1954

Tota l gold ce rtiAcate reserves ............ . . . $ 717.402
Discounts for member bonh . . . ....... .. ... .
30,415
Other discoun ts and advances . ... ... . .. . . . .
o
U. S. Government securities ..•.. ... . ........
978,660
Tofa l earning a uets ............. . ........ .

Member bank reserv e de posits ...... ... . .. ,.
Federal Reserve notes in actuol circulation •••.•

1,009.075
968."0
727,096

$ 80 •• 153
U.OOO

8.115
977.963
1.000.078

1,002,441

751.315

Nov, 16,
1955

$781.301
7.696

961.827
969.523
985.298
721.964

Change from

The Treasury subsequently borrowed about $1,500,000,000
in new money through the issuance of a 99-day Tax Anticipation bill dated December 15. This issue was offered with two
features designed to increase its attractiveness: Qualified
depositary banks were permitted to credit up to 60 percent
of their purchases to the Tax and Loan Account; and these
securities can be offered for redemption at par on March 15
(8 days prior to maturity) in payment for taxes. In the
Eleventh Federal Reserve District, subscribers applied for
$160,727,000 of these bills and were awarded $79,067,000.
For the country as a whole, the corresponding figures were
$4.,129,518,000 and $1,500,689,000. The average issuing
rate was 2.465 percent.

NEW PAR BANK
The Idalou State Bank, Idalou, Texas , an insured,
nonmember bank located in the territory served by the
Head Office 0/ the Federal Reserve Bank of DaUas, was
added to the Par List on its opening date, November
28,1955. The officers are: C. L. Haley, President, and
Jerry Denny, Cashier.

The outstanding developments in
the petroleum industry during late
November and early December were
the sharply rising demand for heating oil, resulting from markedly
colder weather throughout most of the eastern two-thirds of
the United States, and the continuing demand for residual
fuel oiL In the 5 weeks ended December 16, the demand for
distillate fuel oil was 15 percent greater than on the comparable date a year earlier_ Kerosene demand was also strong
in early December. Total demand for the four major refined
products was 18 percent above that in the previous 5-week
period and was 9 percent more than in the same period of
~ 1954.
As a consequence of this sharp increase in demand, crude
slocks continued to decline and on December 10 were 2 percent lower than in November and 4 percent lower than in

November

19542

1955 1

1954

3.025.7
2.698.0
580.0
1.037.4
213.0
89.9
777.7
219.2
108.5
3.3 19.9
6.345.6

3.155.8
2.815.0
583.9
1.101_4
212.9
90.2
826.6
225.0
115.8
3.575.6
6,731.4

199.9
184.5
12.5
102.4
6.3
.3
63.0
7.7
7.7
285.0
484.9

November

Area

1955 1

ElEVENTH DiSTRiCT ••••• _._
Texas ..................
Gulf COO It • •••••••••.•
West Teltos ...........
Ea st Texas (proper) •.•..
Panhandle ••••.•.•.•.•

3.225.6
2.882.5
592 .5
1.139.8
219.3
90.2
840.7
226.9
116.2
3.604.9
6/830.5

Rest of Stat••• . . . •••.•
Southeasfern New Mexico .•

deemed for cash; subscriptions of $9,082,247,000 were made
for the new certificate; and an exchange of $2,283,165,000
for the 1958 note also was effected. In the Eleventh Federal
Reserve District, $57,080,000 of the new certificate and
S75,006,000 of the note were taken.

October

November

North.rn LouisianQ .......•
OUTSIDE ELEVENTH DISTRICT.

UNITED STATES •• ••••••• _._
SOURCES:

Oaober
1955

69.8
67.5
8.6
38.4
M
0
14.1
1.9
.4
29.3
99.1

I Estimated from American Petrol.um Institute weekly reports.
: United States Bureau of Mines.

December a year earlier. Stocks of major refined products
on December 16 were 5 percent below the November level but
1 percent above those in December 1954_ In a year-to-year
comparison, gasoline stocks were up 6 percent and distillate
fuel oil stocks were up 7 percent, while kerosene and residual fuel oil stocks were down 6 percent and 22 percent,
respectively_
Crude oil production in the first 16 days of December averaged 3,276,000 barrels per day, or 50,000 barrels above
November and 232,000 barrels above December a year
earlier_ In the Nation, crude oil production averaged 6,922,000 barrels per day, or 1 pcrcent above November production
and 8 percent over production in December 1954_
Texas allowables for January, at 3,275,891 barrels daily,
remain unchanged from the mid-December level and are 2
percent higher than a year earlier. The number of producing
days is unchanged at 17, indicating a slight rise in total
production for January as new wells are brought in. Louisiana
allowables also are expected to remain unchanged between
December and January.
Refinery activity in the District was down slightly in the
first 16 days of December but, at 2,242,000 barrels per day,
was 97,000 barrels---or 5 percent- above the level of December 1954. Refinery runs in the Nation followed a similar
pattern, with a slight decline in early December from the
November level. At 7,670,000 barrels per day, national runs
were 6 percent above the average in December 1954.
Imports in the 5 weeks ended December 16 reached 1,336,000 barrels per day, or 193,000 barrels above the average for
the previous 5 weeks and 166,000 barrels above the average
in December 1954. Most of the month-to-month increase came
from larger imports of refined products, which rose 35
percent; crude oil imports were up 9 percent.
During November, total nonagricultural employment in the five states
lying wholly or partly within the
District established an all-time
record for the third successive
month. November employment of 3,966,800 was nearly 20,000
above the October level and almost 115,000 more than in

MONTHLY BUSINESS REVIEW

NONAGRICULTURAL EMPLOYMENT

BUILDING PERMITS

Five Southwestern Stalesl

11 months 1955
Pe rcentage
change in
va luation from

Percent change

Number of persons
Type of employment

November
1955.

November
1954r

Nay. 1955 from
October
1955

Nay.
1954

November 1955

Oct.
1955

Number

Areo

Total nonagricultural
woge and salary workers .• 3,966,800
Manufacturing •..••••• .••
736,600
Non~~nufacturing

••••••• • 3,230,200
Mining • ••.. • .•. •• . •••
245,1 00
269,800
Construction . . . .......•
Transportation and public:
utilities ........•••.•
399,000
Trade ............ ..•• 1.01.4.700
164,200
finance ..........•..••
458,300
Service .........•.••..
Government .....• .. ..•
669,100

3,851,900
712,500
3,139,400
233,500
269,700
390,600
996,000
156,200

3,947,200
731,300
3,215,900
242,700

275,700
397,400

445,500

1,0 13,200
163.700
458,300

647,900

664,900

3.0
3.4
2.9
5.0
0

.5
.7
.4
1.0
-2.1

2.2
2.9
5.1
2.9
3.3

.4
1.1
.3
0
.6

1 Arh:ono, louisiana, New Mexico, Okla homa, and Teaos.
• -Estimated.
t-Revlsed.

SOURCES,

LOUISIANA
Shreveport .•..

Abilene ..•• .. .
Amarillo ••••••

Austin . . ... . . .
Beaumont •••• •

Corpus Christl..
Dallas ...... . .
EI Paso •...•..
Fort Worth .••.
Galveston •••• •
Houston ••••• •
Port Arthur • • ••

Son Antonio •.•
Waco ••......
Wichita Foils . •

Nov. Oct.
1954 1955 Number

-7

5,330

33,887,072

58
-64-39
-26
-59
-15
_2
1
1
-33
-33
27
_52
20
129

-21
5
-50
-16
_25

1,799
2,777
3,327

18,513,503
20,064,177
38,844,323
8,211,141
27,382,956
163, 117,446
32,274,519
54,178,066
",820,142
131,477,852
26,038,467
5,053,330
53,950,401

38
6
-7
-4
-14
18
20
28
-33
-14
7

161
226
221
260
330
1,869
339
675
92
763
175
141
1,251
231
150

1,413,775
1,135,25.4
2,38-',125
438,707
1,188,787
10,683,173
2,"20,0"7
3,025,679
406,112
8,231,0,14
1,067,533
336,055
".195,450
1,184,957
1,259,417

-22

-15
-51
54
-19
- 57
-47
-4
7
23

3,413
",661
24,977
",760
8,573
1,157
11,.435

3,098
1,7.45

18,786
3,238
1,584

10101-16 cilles .. 7,428 $41,596,230 -27 -24 100,660

November 1954. The sharpest seasonal gain occurred in trade
employment, which was stimulated by the pre·Christmas
seaSOD. Significant increases also occurred in mining and
government employment. Construction employment showed
a sharp seasonal decline,
Manufacturing employment during November increased
to 736,600; most of the gain occurred in transportation
equipment manufacturing, as aircraft factories expanded
employment. Increases also occurred in the maj or manu·
facturing groups-food processing and textile mill products.
Unemployment during November remained near the sea·
sonal low reached in October. In Texas, the only District
state for which data are available, unemployment declined
from 98,300 in October to 97,400 in November, the lowest
level for that month since 1952.
Construction contracts awarded in the D;strict during
November were moderately above those in the preceding
month and in November 1954. The value of awards during
the month totaled $134,,931,000, which is 9 percent above
October and 6 percent above the level of a year ago. Sharp,
offsetting changes for the major types of construction underlay the upward movement in the total value of awards, Resi-

Valua tion

544 $ 2,226,11 5 -5

TEXAS

lubbock .. .. . .

~~dt:r:il~~!~:n~:ngke:,iD~llas.

Valuation

Pe rcentage
change in
yaluation
from 11
months
195"

12,768,099

3
2
35

$644,982,861

14,401,367

dential awards continued to decline and were down 20 percent from October and 43 percent from a year earlier. Awards
for "all other" construction increased 27 percent from the
previous month and were up 62 percent from November 1954.

Tn the Nation, the value of construction contract awards
during November was 4 percent less than in October but 20
percent above a year ago. Residential awards declined 7 percent from October but were 2 percent more than a year earlier.
"All other" awards decreased 1 percent but were up 36 percent
from November 1954,
Cumulative construction awards between January 1 and
November 30, 1955, were 21 percent higher in the District
and 22 percent higher for the Nation than in the comparable
period a year earlier. Residential awards showed a 4-percent
increase in the District and a 22.percent increase in the Nation. However, "all other" awards in this same period were
37 percent bigher in the District, compared with a 21-percent
gain in the Nation.
DOMESTIC CONSUMPTION AND STOCKS OF COTTON
IBales)

VALUE OF CONSTRUCTION CONTRACTS AWARDED
Areo

(In thou la nds of dollars)

October
1955 1

October

1954

August-October
September
1955 1
This season last sealOfl

CONSUMPTION
January-November
Area ond type

November

October

1955p

1954

1955

ElEVENTH DISTRICT•• $ 134,9 31 $ 127,115 $ 123,602
Residential. . . . • . .
38.382
67,417
47,768
AU ather...... . ..
96,5"9
59,698
75,834
UNITED STATES' .• •• 1,796,787 1,498,850 1,862,692
Residential.. .....
725,712
708,691
782,791
All oth.r ......... 1,071,075
790,159 1,079,901
1 37 states east of Ihe Rocky Mountains.
p-Pr.Umlnory.
SOURCE, F. W. Dodge Corporation.

1955p

1954

$ 1,590,714 $ 1,312,264
666,306

638,277

924,408
21,843,523

673,987
17,941,430

9.493,053

7,756.71.4

12,350,470

10,184,716

Total
11,504
12,966
35,679
Teaa s mills . ..•......
11.519
36,37 3
874,837 2,329,120 2,192,157
737,056
706,936
U. S. mills.. .... . .....
Doily average
519
549
575
576
560
TUa, mill .. . ........
34,994
35,833
36,853
35,347
33,725
U. S. mills. •.•........
STOCKS, U.S.-End of period
Consuming estobllshments. 1,362,267 1,392,963 1,209,252
Public storoge and
compresses • . ........ 14,543,307 12,845,924 11,796,569
Four weeks ended October 29.
2 Five weeks end.d October 1.
SOURCE, United Stotes Bureau of the Census.

Full text of Review (Federal Reserve Bank of Dallas) : January 1, 1956

FRASER