Full text of Review (Federal Reserve Bank of Dallas) : July 1961

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BUSINESS
REVIEW
JULY 1961
Vol. 46, No.7

EARNINGS AND EXPENSES OF SOUTHWESTERN
TRUST DEPARTMENTS IN 1960
Each year since 1957, the Federal Reserve Bank of Dallas, in
cooperation with the Trust Section of the Texas Bankers Association, has conducted a survey on income and expenses of trust
departments at selected banks in the Eleventh Federal Reserve
District. Of the 112 District member banks which performed
trust services during 1960, 42 banks, with trust departments of
various sizes, participated in the current survey. The combined
income of these trust departments accounted for 90 percent of
total trust department earnings at member banks in the District.
Before the results of this survey are utilized, certain limitations in the data should be noted. First, as in any study of this
type, there were some inconsistencies in the reporting, though
analyses of the broad aggregates are largely unaffected. Secondly,
unusual developments on either the income or the expense side
may occur in one year and be absent the next, but the effect of
such variations is minimized if developments over a period of
years are considered. Thirdly, because of the relatively small
number of banks included in the survey, the results may sometimes be noticeably influenced by the experiences of a few banks.
Finally, a small percentage change in the earnings or expenses
of a large bank may have a very significant dollar impact, whereas
even a substantial change in these items at a small trust department may not be nearly as influential.
With the above limitations in mind, a number of important
characteristics of trust departments in the Southwest become evident from the reported data. Trust activity in the area is centered

FEDERAL

RESERVE
DALLAS,

BANK

OF

DALLAS

TEXAS

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

ANNUAL TRUST DEPARTMENT
EARNINGS AT MEMBER BANKS

700 1 - - - - - - i - - - - - l - - - - r - - - t - -/ - - j

6001 - - - + - - - + - - - + - - '/- - 500 1-----l---!----j-~ 1 - - l - - - - - ; 500

400 ~-~--_4--~,'---_t--~
3001 - - - - - l - - - - - l -.,....

:::"-- - 1 300

200 I - - - - - - i -/ ----l--:

'-.:....---!---......, 200

100~~=-i1...--~---+--__+--,

100

L--~
1948--~--~
195-4--1~
95=7-~
19~

SO URCE : Fede ra l

RII. rVI

~

in the large banks, with less than one-fifth of the District member banks accounting for over 80 percent of
total bank trust department earnings. Moreover, the
degree of concentration in the large trust departments
has grown over the years.
Trust activities in the Southwest are dominated by
personal accounts, especially personal trusts. Personal accounts provided about 80 percent of total trust
department earnings in 1960, while corporate accounts
contributed the remaining 20 percent. Personal trusts
comprised about one-half of the total income from
personal accounts and 45 percent of the income from
all accounts.
Corporate trust business of banks in the Southwest
is predominantly concerned with agency services for
corporations, and the number of such accounts has
been growing steadily. The total income from corporate agency accounts - including fees paid to the
trust department in its capacity as registrar, depositary,
transfer agent, coupon- and principal-paying agent,
and dividend-dispersing agent - has been increasing
in amount and in proportion of total trust income. In
addition, southwestern banks are expanding their role
as trustees for notes, bonds, and other debenture issues.
Income Developments

Total income from trust department activities at the
banks included in the survey totaled $8,662,718 dur-

I

BUSINESS REVIEW

7:1961

ing 1960 to reflect a gain of 8.8 percent, comp~red
with an expansion of 10.7 percent in 1959. Earlllngs
fro}D corporate business rose 26.5 percent, contra~ted
with a small decline in the previous year. Earlllngs
from personal accounts showed less than one-half the
1959 advance but still increased 5.5 percent. ThuS,
the smaller gain in total trust income during 1960 was
due to the slower rate of expansion in income from the
personal account sector.
The volume of trust business, and hence the inco~e
derived from this activity, is influenced by the prevaIling economic and financial environment. The slower
rate of growth in 1960 trust earnings from personal
accounts probably resulted, in part, from the adverse
psychological impact of the developing business recession upon persons considering the establishment of
inter vivos (living) trusts. Moreover, the slower rate
of advance in personal income may have reduced the
ability of persons to establish such trusts. Conseque~tIy,
both the number of personal accounts and the earlllngS
from this source failed to show the growth of other
recent years. Furthermore, had it not been for ~h.e
lower business level, earnings from corporate actIVIties would probably have expanded more.
The substantial rise in earnings from corporate aCcounts was partly the result of a 50-percent expan~ion
in income from corporate trusts. At the same t1Ill e,
however, the number of corporate trusts declined almost 15 percent. This reduction occurred entirely at
smaller trust departments, as such accounts increased
at the larger trust departments during 1960. (A verY
substantial increase in earnings from this source at
banks with total trust commissions and fees of $10,000 to $50,000 reflected the experiences of only II
few banks.)
Earnings from corporate agencies, amounting to
almost three times the earnings from corporate trusts,
are clearly the more impo~tant sourc~ of bank ~ru~
income from corporate busmess. The 1l1come denve
from corporate agencies by bank trust departments rose
$215,000, or over one-fifth, during 1960. As in tbe
case of corporate trusts, the number of corporate ag~n­
cies declined at the smaller banks, but this reductiOn
was more than offset by an expansion in such agencieS
at the larger banks.
Although not revealed in the aggregate data, there
have been some gains in earnings from corpora~e
agency activities at smaller banks and slight losses I~
such corporate business at larger banks. Some sJ1la

banks have been designated paying agents in the handling of various municipal accounts, with their larger
correspondent banks being named co-paying agents.
As a result, the fees that formerly went entirely to the
larger banks are now shared with the smaller banks.

TRUST DEPARTMENT INCOME. BY TYPE
OF ACCOUNT, AT 42 COMMERCIAL
BANKS. 1960
ELEVENTH FEDERAL RESERVE DISTRICT

The over-all expansion in earnings from corporate
agency business reflects the continued high level of
~tock activity, both on the organized exchanges and
In over-the-counter trading, and the fact that an increasing amount of this business is being handled by
SOuthwestern banks. The ability of banks in the District to handle such business has improved steadily
for several years and has become especially noticeable
within the past 5 years. The experiences of bank
trust departments last year indicate that corporations
lOcated in the Southwest which have been assigning
their trust business to banks in the East are relying
lUore and more on the services available from southWestern banks.
rapidly or as high as during previous recessions. On
balance, the over-all market value of these investments
. DUring 1960, trust income from personal accounts
declined; thus, fees were reduced.
In the District showed less than one-half the growth of
Earnin.gs from estates, the only type of personal ac1959. However, with the exception of income from
estates (which declined 4.3 percent), income from coun~ WhICh showed. a decline in 1960, tend to be quite
every type of personal account moved higher. The reo volatile. These earn~gs may be bunched in one year,
duced growth rate of earnings from personal accounts only to dr~p substantially the next year. The particular
was not simply a result of a lower volume of such ac- estate paymg fees usually is more important than the
COunts but was also caused by a decline in the fees number of estates in determining the changes in trust
Charged. The fees which a trust department charges department earnings from this source because earnings
are based on the market value of the property held in from one very large estate may have a substantial imtrust. In 1960, as business slowed down, stock prices pact on the income changes. Moreover, some estates
deClined sharply, while bond prices rose but not as are tied up for years, but, in a few instances, the entire
fee is paid at one time. Thus, as was the case in 1960
the experiences of only a few banks may result in ~
substantial change in total earnings.
TRUST DEPARTMENT INCOME
AT 39 COMMERCIAL BANKS·
ELEVENTH

F EDERAL

RESERVE

DISTRICT

PERSONAL TRUSTS
. . . . . . ipENSION AND PROFIT..
SHARING TRUSTS
I
• • • PERSONAL AGENCIES

I

TOTAL PERSONAL ACCOUNTS
,,. . . . . . . . . . . . CORPORATE
TRUSTS
• • • • • CORPORATE AGE1NCIES
. . . . . . . . TOTAL CORPPRATE ACCOUNTS

The number of pension and profit-sharing trusts
showed a greater rate of growth in 1960 than all other
accounts, continuing the trend that has been prevalent
for some years. The expansion in pension trusts reflects
a shifting of such funds from other forms of pension
plans to a trustee-type arrangement. The bank trust
departments have vigorously sought this business and
have achieved a great deal of success. The expansion
in profit-sharin.g plans re~ects the efforts of a growing
number of busmesses to mcrease executive compensation or stimulate workers' interest in the company .
Expense Developments

+ 60

+ 40
PERCENT
·Sanks 'Whlc:h r tpo r led In bo lh

1 9~9

CHANGE.

1960

an d 1960 .u r veys .

FROM

1959

Total trust department expenses in 1960, rising 10.9
percent, showed approximately the same rate of growth
as during the preceding 2 years. The smaller banks exBUSINESS REVIEW
7:1961

I

perienced the largest increase in expenses; in fact, the
relative growth in expenses generally became smaller
as the volume of trust operations became larger. The
greatest relative increase in expenses occurred in the
category "other expenses related to salaries" and was
largely accounted for by the gain in the trust department's share of the bank's contribution to Federal Social Security and similar payments, as well as the rising rate paid for Social Security coverage. Substantial
growth also occurred in expenses for advertising, pensions and retirements, and periodicals and investment
services.
Advertising expenses generally account for a larger
portion of total trust expenses for banks in the Southwest than for banks in the financial centers in the East
because trust activity is a relatively new development
in the Southwest. Banks in the Southwest find it necessary to exert more effort and devote more funds to educating the public regarding trust services and their
availability at local banks.
The increase in expenditures for periodicals and investment services occurred primarily at the smaller
banks. These banks do not have the staff for investment
analysis, and a growing number are engaging outside
consultants on a full- or part-time basis. Part of the
growth in these expenses also reflects an increase in the
cost and number of subscriptions to investment services.
As in other years, wages and salaries dominated expenses of the trust departments. Salaries and wages
accounted for 61 percent of total expenses during 1960,
and, if related expenses are included, the proportion
reaches 68 percent. Generally speaking, salaries and
wages tend to represent a relatively higher proportion
of expenses at the smaller trust departments. In addition, officers' salaries comprise the more important item
in salaries and wages in small departments, whereas
employees' salaries are the more important element at
larger banks. The ratio of employees to officers increases as the volume of trust business at a single bank
becomes larger. In 1960 the ratio of employees to officers was about 2 to 1 in the banks with commissions
and fees under $100,000 but approximately 4 to 1 for
banks with trust earnings above this amount.
The explanation for the greater number of employees and the lesser importance of officers' salaries as the
trust department grows larger is found by examining
the data supplied by 22 commercial banks that were
able to break down their expense items by personal and
corporate accounts. These banks indicated that most

I

BUSINESS REV I EW

7:1961

TRUST DEPARTMENT EXPENSES AT 39 COMMERCIAL BANKS
1960 AND 19591
Eleventh Federal Reserve Di strict

=

Percent
Item

dnd

Salaries
wag es
OIAters .......... ... .. ... ........
Employees ••..••...•••..•....• • •. .
Pensions and retirem ents • ..••....••.•.•
Personnel insurance • •••...••..••••. •••

Other expenses related to sa la ries . . .. ..
Occupancy of quarters . ...... . .... ....
Furniture and equipment . ... ...........

Stationery, supplies, and postage .... ....
Telephone and telegraph • ... .. ....... •

Advertising . .........................
Directors' and trust committee fees ...... .
Legal and professional fees . . ••••. .. •.•
Periodicals and investment services •••• ...
Examinations . .......................
Other dir ect expenses ....... .•...... . .
Total direct expenses . ...•.•........

Overhead . .. ............. .... .. ....
Total expenses •• . .. ...........•....

change

1960

1959

$2,394,576
2,7 19,620
367,530
65,992
153,774
498,947
171,408
226,378
75,884
161,377
50,276
49,774
56,785
36,788
366,929

$2,120,148
2,506,533
312,834
60,216
100,882
479,398
169,479
233,14 1
67,21 1
121,296
46,010
47,053
49,657
49,545
363,761

12.9
·8.5
17.5
9.6
52.4
4.1
1.1
_2.9
12.9
33 .0
9.3
5.8
14.4
_25.7
.9

882,7 49

9.9
18.6

$7,396,038
1,046,812

-$8,442,850

-$6,727,164
-$7,609,913

10.9

- -Data- ---------------------oro derived from the reports of 39 tru st departments which participated in
1

both the 1959 and tho 1960 surveys.

of the expenses in handling personal accounts are not
much different from those incurred with corporate
accounts with one important exception. Officers' salaries are a much more important expense item in personal accounts, while employees' salaries and wages
have greater weight in corporate accounts. This relationship is a reflection of the fact that much of the work
in servicing corporate accounts tends to be routine and
can be handled by clerks or through mechanized processes. Since the larger bank trust departments have all
increasingly higher proportion of corporate accounts,
the size of the banks becomes an important indicator
of the relative significance of officers' salaries versus
employees' salaries.
Direct expenses of trust departments are clearly the
more important expenses. For all the survey banks
combined, such expenses comprised 88 percent of trust
department expenses during 1960, while overhead eXpenses accounted for only 12 percent. Some difficultY
in allocation has been encountered by the banks,
but, generally, the overhead item is becoming lesS
important.
Net Income

Total expenses at the 42 banks which participated iII
the 1960 survey absorbed 98 percent of the income received from commissions and fees. Thus, net earningS,
at almost 2 percent of total trust income, were at the
lowest level since these surveys began in 1957. T~e
lower level of net income largely reflects the decline 1!1
the earnings rate from personal accounts. The substa~­
tially higher earnings rate from corporate accounts dId
not offset the reduced rate of earnings from the mu cb

larger personal sector. Expenses grew at about the same
rate as in the previous 2 years, with increases in salaries
and wages accounting for most of the rise.
Of the 42 banks in the survey, one-half reported net
losses on their trust activities. The smaller banks experienced unprofitable operations more often than the
larger banks, but a significant number of large banks
also showed losses. Almost two-thirds of the banks receiving $10,000 to $50,000 in total trust earnings
SUffered deficits while less than one-half of the banks
in the over $300,000 classification experienced losses.
!he more profitable trust operation of the larger banks
IS explained, in part, by the fact that they are able to
attract corporate accounts, which offer a greater return
per dollar expended.

If all reported earnings were adjusted to allow credit
for deposits, the picture would be noticeably impro~e?
Only 18 of the survey banks allowed such a credIt m
1960, but, after this adjustment, net earnings before
income taxes from trust department activities of t~e
42 banks amounted to 15.2 percent of total commISsions and fees plus deposit credits. If the other b~nks
had also permitted such an adjustment, t~le .earnmgs
Position would have been even better (thIS Improvement, however, would not be nearly as large as that
Shown above since most of the larger banks already
permit such a credit). The deposit credit is allowed in
order to appraise the contribution of the tr~st department to the profitable operations of the entIre bank.

NET EARNINGS AND RELATED ITEMS FOR COMMERCIAL
BANK TRUST DEPARTMENTS, 1960
Eleventh Fede ral Rese rve District
(Perce ntage of total commiss ions and f ees )

42 ban ks with total commissions and fees of:

Item

$ 10.000$50,000

$50,000$ 100,000

$ 100,000$300,000

$300,000

Numb er of banks

18

6

7

11

42

Total expenses •••• • •. • •.•.•••

119.7

98.4

96.5

97.0

98.1

-19.7
8.0

+ 1.6
17.3

+ 3.5
17.4

+ 3.0
12.9

+ 1.9
13.3

for de posit cre dits •••. •• .•• • -11.7

+ 18.9

+ 20.9

+ 15.9

+ 15.2

2.5

2.0

2.6

2.2

5

6

18

$929

$6,898

$8,663

Tr usl d epartm ent net earnings

Ove r

Total

(+ ) or losses (-) before
incom e ta xes • • •• • • • •• • • •••

Allowed cre dit for deposits .• •
Trust de partment net e arnings

( + ) or losses (-), adiuste d
M emorandum flgu res

Av erag e rate allowe d a s

deposit credit (percent)! • • .
Numb e r of banks allowing
d e posit cre dits • • .••.. ••••
Amount of total commissions

and fees (in thousands) ...•

1.8
4
$407

$4,29

1 Based on re po rte d rates onl y; excludes ban ks which do not allow a cre dit for
de posits.

credit was for corporate trusts. In addition, corporate
activities generally attract more deposits to banks than
do personal accounts.
Summary

During 1960, net earnings of trust departments at
survey banks in the District failed to match the growth
evident in other recent years. A substantial expansion
in earnings from corporate accounts could not offset
the sharp decline in the rate of income growth in the
more important personal account sector. Bank trust acIt is interesting to note that, in all but the largest tivities in the District continued to be dominated by
claSSification of bank trust departments, the av~rage large banks in 1960; in fact, the larger banks gained a
salary of the officers was higher for the banks showm~ a greater share of the market last year. It appears that
loss on their trust operations than for the banks show~.g the District bank trust departments have reached suffi~ profit. In attempting to expand their .trust actlVl- cient maturity to compete effectively with banks in the
h~s, banks probably have paid larger salanes to attract East for corporate accounts in the Southwest. Thus,
~ghly qualified officers. However, ther~ may be. a lag trust departments may be expected to play an increas~n the gains from such a personnel policy, and, m the ingly important and profitable role at southwestern
banks in the years ahead.
Interim, these trust departments show losses. Thus, ~he
WILLIAM N. GRIGGS
fact that officers' salaries are high for banks showmg
Financial Economist
lOSses may actually be an indication of improved income prospects for the future.
The more profitable trust operations possi~le through
corporate activities is indicated by the detailed breakd?wn of earnings and expenses by type of account for
eI~ht large commercial banks in the Sout~lwest (each
Wlth income from commissions and fees m excess of
$35 0,000). At these banks, corporate trusts requi~ed
eXpenditures amounting to only 63 percent of the 1I~­
come received from this activity, and the largest depOSIt

A group of detailed statistical tables compiled from
the survey of 1960 earnings and expenses of commer.
cial bank trust departments in the Eleventh Federal
Reserve District may be obtained by addressing a
request to:

Research Department
Federal Reserve Bank of Dallas
400 South Akard Street, Dallas 2, Texas

BUSINESS REVIEWI

7:1961

REVIEW

-

BUSINESS, AGRICULTURAL, AND FINANCIAL CONDITIONS

Department store sales in the
Eleventh Federal Reserve District in May were 4 percent
above May 1960, mainly because of the larger number of
trading days. Cumulative sales in the first 5 months
of 1961 equaled those in the same period of 1960
but were 1 percent below the record first 5 months
of 1959. The seasonally adjusted index of sales for
May was 160 percent of the 1947-49 average, compared with 177 for April and 159 for May 1960.
Unadjusted department store stocks were I.o wered 4
percent during May and at the end of the month were
2 percent below stocks for the same time in 1960.
New car registrations in four major Texas markets
in May were 23 percent higher than in April but were
9 percent less than in May last year.
Soaking rains over most of the District during
June resulted in unusually favorable soil moisture
conditions. The precipitation was generally beneficial to crops and brightened summer range and
pasture feed prospects. The first bale of 1961-crop
cotton was ginned in the Lower Rio Grande Valley
of Texas on June 7. Wheat production in the District
states is estimated to be the second largest crop of
record.

Department store sales in the
Eleventh Federal Reserve District in May rose 9 percent above
April and 4 percent above May
1960. As a result, cumulative
sales for the first 5 months of 1961 equaled those in the
comparable period in 1960; however, these sales were
1 percent below the record first 5 months of 1959.

The Texas industrial production index held steady
at 175 during May, as strength in manufacturing offset a slight decline in mining. Nonfarm employment
in the five District states increased for the third conse~utive month, with manufacturing, mining, construction, and trade employment showing gains. Total
unemployment in Texas declined to 5.2 percent of
the State's civilian labor force.
Construction contracts in the District states declined slightly during April. However, the total value
of construction contracts during the first 4 months of
1961 was 4 percent greater than a year ago.
In the 4 weeks ended June 14, loans, investments,
and deposits expanded at the District's weekly reporting member banks. Member bank reserves
moved somewhat lower in the 5 weeks ended June 7
but remained at a comfortable level.
Daily average crude oil production in the District
declined moderately in May but rose slightly in early
June, while trends in drilling activity were mixed in
May. Daily average crude oil runs to refinery stills
advanced moderately. The demand for gasoline rose
more than seasonally in May and continued to tren~
upward in early June. Gasoline prices firmed at all
levels of distribution throughout most of the Nation.

-

which makes allowances for differences in the number
of trading days and other seasonal factors, was 160
DEPARTMENT STORE SALES
(Perce ntag e change in rotail va lu e )

====================================~~
Ma y 1961 fro m

Area

Total Eleventh District • •• •• ••••

The dollar-volume increases in May from the previous month and a year ago were accounted for almost
entirely by the effect of extra business days. May 1961
had 27 shopping days; April, 25 days; and May last
year, 26 days. The seasonally adjusted index of sales,

I

BUSINESS REVIEW

7:1961

Corpus Christi ••••.•••••..•• ••
Dalla s ..................... .
EI Pa so • ••. . .••••.•••• .•• •••
Fort Warth .. . .. . ... . .... ... .
Houston • •••••••• • ••••••••••

San Antonia • ••.• •••• •.•••.. •

Shreveport, la .• • •• ••• ••••• ••
Waco ••..•••....
Other cities •• •• •••• •••••• .••
0

••••••••••

April
1961

May
1960

9
7
7
6

4
-1
4
4

4
12
19
10

-4

18
5

3
4

8
9

12

5 months,
1961 from
1960 ____

o
-6
-'-1

-6
-4

2
3
3
- 1
1

-------------------------------------------

INDEXES OF DEPARTMENT STORE SALES AND STOCKS

COTTON ACREA GE, PRODU CTION, AND VALUE OF PROD UCTION

Eleventh Federa l Reserve District
(1947-49

(In thou sands)

= 100 )

~~~=====================================
SALES (Daily averag e)

Date

Unadjuste d

Sea sonally
adjuste d

Unadjuste d

1961 : March • •• •. . ..•
April •. •••• . .. •
Ma y .• ... . .•. .

159
155
159
160

159
168
177
160

183
183
186
180p

~May • . • ..• • •. •

Sea sonally
adjusted

185
174
179
181p

------------------------------------------P -

Acreage harvested

STOCKS (End of month)

Bales produce dl

Area

1960

1959

1960

1959

Arizona •.•.... .

426
510
201
630
6,325

383
495
198
625
6,350

849
50 1
291
458
4,346

715
492
323
381
4,416

Tota l.. .. .. . . . 8,092
Unite d States • • 15,309

8,051
15, 11 7

6,445
14,272

Louisiana • • .. ...

New Me xico . . .. .

Oklahoma ••• ...
Texas ......... .

Preliminary.

1

6,327
14,558 .

Value of lint and seed
1960

1959

$ 149,549
85,640
51,52 1
70,567
686,488

$ 131 ,512
88,777
61 ,759
58,874
72 1,836

$ 1,043,765
$2,395,493

$ 1,062,758
$2,536,380

-

500 pounds gro ss we ight.

SOURCE : United States Department of Agriculture.

percent of the 1947-49 average in May. This figure
C0ll1pares with 159 for May 1960 and 177 for April,
the latter including a substantial special adjustment
for the early date of Easter this year.

The Nation's first bale of 1961-crop cotton was
ginned in the Lower Rio Grande Valley of Texas on
June 7, or 2 weeks earlier than last year. Cotton planting in the Di~trict is. a~ost complete. The crop has
. After May 20, District department store sales again progressed satisfactonly 111 southern and south-central
dIpped below the year-earlier level. In the 3 weeks counties, despite dry spring weather conditions, and
ended June 10, sales declined 4 percent from the cor- has benefited from the June rains. Cotton in the Blackresponding weeks in 1960.
.
~ands is I~aking .fair. d~velopment, and most of the crop
111
the High Pla111s IS 111 good condition.
Department store inventories in the District showed
a less than seasonal decline of 4 percent during May
~rilling of sorg?~S .in the District is nearing combut at the end of the month were 2 percent less than the pletIOn, and comb111mg IS under way in the Lower ValYear-earlier stocks. The May adjusted index of stocks ley. Corn planting is almost finished in the District but
w~s 181 percent of the 1947-49 average, compared rains were received too late to be of material benefit to
With 179 for April and 185 for May 1960.
early~mat~ing corn in. south-central areas. Soybean
New car registrations in May in four major Texas plantmg IS under way 111 the High Plains and north
l11arkets -- Dallas, Fort Worth, Houston, and San An- Texas. Rice in Louisiana and Texas is making exceltOnio -- were 23 percent above April but were 9 per- lent growth, and early plantings are heading.
cent below May 1960. Cumulative registrations in the
The final report on the 1961 feed grain program for
first 5 months of 1961 totaled 21 percent below the divert~n~ corn and grain sorghum acreage shows that
same period in 1960. All the markets showed sharp 3.7 I~Illi?n acres on 11.1,986 farms were signed up in
A.pril-May gains, ranging between 20 percent and 30 the DIstnct states of Anzona, Louisiana, New Mexico,
percent. However, compared with May last year, reg- Oklahoma, and ~exas this year. About 87 percent of
~strations were down 1 percent in Houston, 11 percent the total acreage dIverted had been grain sorghum acre~n San Antonio, 13 percent in Dallas, and 18 percent age. The 3.7 million acres signed up under the program
III Fort Worth. For the first 5 months of this year, the represent 32 percent of the total 1959-60 average
fOUr markets reported cumulative year-to-year losses plantings for these grains.
that ranged from 18 percent to 27 percent.
Widespread showers and rains during the past month
. ..
Despite minor crop damage ~nd delayed wheat harvest in the Plains, and scattered hail
I~
',~.: .~.:~ ~,
delays in fiel~ work,. soakmg damage occurred; however, combining of the District's
\\~R I 9uLT ir~E' ' . rains over a. major portIon of t~e wheat crop is about one-half complete. The winter
~~'
;.d,~,;-,;, :
District during June resulted 111 wheat crop in the District states, as of June 1 is placed
unusually favorable soil moisture at 215.6 Inillion bushels, or 4 percent above the monthConditions. The rains were beneficial to crops and sub- earlier estimate and 1 percent larger than the 1960
Stantially improved summer range and pasture feed output. A crop of this size would be the second largest
Prospects. Ranges continued to furnish ample feed in of record, being exceeded only by the bumper wheat
the Plains, Cross Timbers, Blacklands, and coastal outturn in 1947. Texas production is now estimated at
areas of Texas ' and the rains revived summer growth 93 million bushels, or 9 percent greater than the May 1
of pastures in central,
'
indication and 10 percent above the 1960 output.
south, and east Texas areas.
BUSIN ESS REVI EW
7 :1961

I

CONDITION STATIST ICS OF WEEKLY REPORTING
MEMBER BANKS IN LEADING CITIES

CASH RECEIPTS FROM FARM MARKETINGS
(Dollar amounts In thousands!

Eleventh Federal Reserve District
January-March

1961

Area
Arizona ..••.........•..... .

louisiana . ................. .
New Mexico ................ .
Oklahoma •••••••••••••• • • ••
Texas ......... .... .. . .. . .. .
Total •• •• •••• ••• •• •• ••••••
United States • •••••••••• • ••

$

95,578
59,787
31,766
11 4,338
428,425

---

$ 729,894
$7,624,092

1960
$

(in thousand s of dollars)

Percent
change

~

o

95,681
55,227
32,238
102,562
375,513

- 1

$ 661,221
$6,904,521

10
10

Item

8

11
14

ASSETS

Between May 17 and June 14,
investments and deposits moved
substantially higher at the Nation's weekly reporting member
banks, while loans declined. The
money market was firm in the last 2 weeks of May but
eased considerably during early June. This easier tone
resulted from the rising level of reserves and a movement of funds to the money centers, as well as the availability of funds from preparations for tax and dividend
payments. The effective rate on Federal funds ranged
from 2% percent to 3 percent in the first 2 weeks
of the period but, after that, was generally below 2
percent.
The Treasury bill market displayed a relatively heavy
tone during most of the period, although a strong commercial bank demand developed in the final week,
Over the entire period, the market rate for 91-day
Treasury bills was virtually unchanged and stood at
2.32 percent on June 14. A heavy atmosphere was present in the market for intermediate- and long-term Government securities until the final week of the period,
when the market firmed somewhat and the sharp price
declines of the previous weeks were partly reversed .
Loans, investments, and deposits expanded at the
District's weekly reporting member banks during the
4 weeks ended June 14. Cash accounts and total assets
showed noticeable gains, and the liquidity position of
these banks improved.
Gross loans (excluding interbank loans) rose $47.2
million at the District's weekly reporting banks during
BUSINESS REVIEW

8

7:1961

June 15,

1961

1961

1960

Commercial and industrial loons. •.. ..... . .. ..
Agricultural loans.. .•... .......••..........
loan s to brok ers and d eal ers for purchasing
or carrying :

1,504,58 1
34,948

1,505,036
37,146

1,469,349
31,199

U. S. Government securities .... ............

8,79 1
43,085

16,169
36,381

1,736
16,22 4

4,442
215,639
13,076
35

6,069
203,730
61,676
10

10,241
177,771
57,759
403

All other loons ............................

92,569
146,378
220,967
812,7 19

89,242
139,914
218,755
784,522

129,535
125,143
208,64 1
776, 154

Gross loans . •. .. ................... . ...
l ess reserves and unallocated charge-ofFs .•

3,097,230
56,535

3,098,650
56,806

Net loan s .. .. ...................... .. . .

3,040,695

3,04 1,844

Trea sury bills ... ...... .. ........ . . ..... .. .

266,141
71,849

110,751
72,152

Oth er securities ... ... ... ..... .. .... • .. .. ..

202,341
642,900
457,352
396,775

197,030
632,309
480,467
398,250

Oth er loans for purcha sing or carrying :
U. S. Government securities •• • ... .....•••..

Other securities . . .. ................ . ... .

Harvest of cantaloupes, honeydew melons, okra,
peppers, and tomatoes is active in the Lower Valley of
Texas. Watermelons are moving in good volume from
all south Texas areas, and gathering is under way in
south-central regions. Tomato harvest in east Texas is
under way, and watermelons and sweet potatoes are
making satisfactory progress.

May 17,

\

Other securities . ............ ... .... .. ...
SOURCE, United States Department of Agriculture .

June 14,

Loons to domestic comm ercia l banks .... .. . . ...

loans to foreign banks . .. . .. ... . ...........
loans to other Anancial institutions:
Sal es Anance, p ersonal flnance, etc . .. ...••..

Savings banks, mlg e. cos, , ins. cos., etc . . .....
Reol-estate loans• • • ..••..••••..•..........

Treas ury cortlncates of indebtedness . ........ •
Tre a sury notes and U. S. Governmen t bonds,

-

--

3,004,155
54,446
2,949,709
46, 181
23,418

including guaranteed obligation s, moturingl

Within 1 ye ar ••• • ••• •• ••••••••• •• •••• ••
After 1 but within 5 years... .............•

Alter 5 years ..... .. ... .................
Totol investments • ..... •.....••..••...•..

2,037,358

1,890,959

Ca sh items in proc ess of coll ection . . ....••..••
Balanc es with bonks in th e United States ... ... .
Balances with banks in foreign countries . . ••..•
Currency and coin •.. ........ • ............•
Reserves with Federal Reserve Bonk •• • •••...••
Oth er a sse ts.•......•.... . .......... . ... . .

534,623
567,103
2,227
57,206
543,624
186,052

524,612
483,705
2,239
55,522
525,59 1
183,919

TOTAL ASSETS • • •••••• • •• •••• ••••••••

6,968,888

6,708,391

2,970,323

2,869,481 }

LIABILITIES AND CAPITAL ACCOUNTS

68,198
820,377
293,73 8
34 1,433

--

1,593,345
536,591
520,283
1,977
50,45 1
557,463
181,858

6 ,391,m

=-

De mond deposits
Individuals, partn erships, and corporations .••.
Foreign governments and offlcia l institutions,
cen tral bonks, and international institutions .•
Unite d States Government . ••.•...... . ..••
States and politica l subdivisions • .•.........
Banks in th e United States, including mutual
savings bonks . . . •• .... . ...• . ..........
Bonks in foreign countries • ...... . . ... .••.•
Certifle d and offlcers' checks, etc .. • ••. .. ...

2,452
196,308
214,045

9,235
136,375
247,0 14

140,577
208,354

1,120,489
12,253
53,893

1,008,443
11,776
46, 160

980,036
14,962
48,639

Total d eman d deposits ••••• •• ••• • •••• ••

4,569,763

4,328,484

Time and saving s deposits
Individuals, partn ership s, and corporations
Savings d eposits • . .•... •.• .... . .••....
Oth er time d eposits ••..... •.. .. . ..•.•.•
Foreign governments and offlcial Institutions,
central bonks, and international institutions ..
U. S. Government, including posta l savings • • .
States and political subdivisions . •....• ••. .•
Banks in the United States, Including mutual
savings banks •• •• . .. ..•.... .• ••.. .....
Banks in foreign countries . ... .•••... .. ... .

775,090
540,290

766,397}
538,437

6
7,102
299,970

6
7,162
308,622

9,324
900

8,499}
900

Total tim e and saving s d epo sits ..........

1,632,682

1,630,023

Total d eposits •••• •• •••• ••• •••••••••
Capital accounts • •.•.... •.• .. ... ..•••.••••

6,202,445
80,800
99,279
586,364

5,958,507
60,600
105,597
583,687

TOTAL LIABILITIES AND CAPITAL ACCOUNTS.

6,968,888

6,708,391

Bills pa yab le, rediscounts, etc . . ..• . ... ....•..

All other liabilities •••••• ••••• ••••••• ••••• ••

2,902,354

--

4,294,922

1,037,170
9,049
222,916

--

3,943

1,273,07 8

5,568,OO~
170,86
100,185
552,628

-

g '/ 1$

~~=-----------------------~~~--~=====-~----­
NOTE . As a result of changes in call report in struction's, additional information
is availabl e, effec tive April 26, 1961 , on th e deposi t struct ure of membe r bonks.
Comparab le year·earli e r flgures will be shown when they becom e available .

the 4-week period, primarily because of increases ill
consumer-type loans, loans to "other financial institutions," and loans for purchasing or carrying securities,

Commercial and industrial loans declined slightly as a
SUbstantial reduction in the "all other loans" category
offset sizable gains in loans to petroleum, coal, chemical, and rubber manufacturers; grain and milling firms;
and concerns engaged in retail and wholesale trade. In
the comparable period a year ago, gross loans advanced
$22.5 million, with the expansion centered in consumer-type loans.

NEW MEMBER BANK

The First National Bank of Duncanville, Duncanville,
Texas, a newly organized institution located in the
territory served by the Head qffice of the Federal
Reserve Bank of Dallas, opened for business June 1
1961, as a member of the Federal Reserve System. Th~
new member bank has capital of $200,000, surplus of
$200,000, and undivided profits of $100,000. The
officers are: C. l. Brandenburg, Chairman of the Board .
Truit Fulgham, President; G. M. Fulgham, Vice President;
and Norman L. Callahan, Cashier.

Total investments at the weekly reporting member
banks in the District rose $146.4 million, largely as a
result of a $155.4 million expansion in holdings of
NEW PAR BANK
Treasury bills. The increase in holdings of Treasury
bills primarily reflects the participation of District
The loving Sfate Bank, loving, New Mexico, an inbanks in the recent Treasury financing involving the
sured nonmember bank located in the territory served
by the El Paso Branch of the Federal Reserve Bank of
sale of a "strip" of Treasury bills maturing between
Dallas,
was added to the Par list on its opening date
August 3 and November 30. The District was third
June 3, 1961. The officers are: E. W. Parchman, Chair~
among all Federal Reserve districts in the volume of
man. of the. Board; . Raymond Morgan, President; Troy
purchases of these bills. Holdings of other Government
Caviness, Vice President; E. E. Hepler, Vice President.
securities maturing within 5 years moved moderately
J. C. West, Jr., Secretary; and Mrs. Dora lou Yarbro'
Cashier.
'
higher, while holdings of Government securities du~ in
IUore than 5 years declined. In the correspondmg
period of 1960, total investments rose $4.5 million,
With an increase in Government security holdings posits of the United States Government. Time and
eXceeding a reduction in holdings of non-Government savings deposits also moved to higher levels as an insecurities.
creas~ in deposits of individuals, partnership~, and cormo~e. than o~s~t a reduction in deposits of
Demand deposits of the District's weekly reporting poratIOns
states and polItIcal subdIVIsions.
banks expanded between May 17 and June 14; the
largest gains centered in deposits of individuals, partTotal reserves of the District's member banks moved
nerships, and corporations; interbank deposits; and de- slightly lower in the 5 weeks ended June 7. Borrowings
and excess reserves rose somewhat at both reserve city
RESERVE POSITIONS OF MEMBER BANKS
banks and country banks, but these changes left free
Eleventh Federal Reserve District
reserves at both types of banks only moderately below
(Averages of daily figures. In thousands of dollars)'
the comfortable levels that have prevailed for some
~~~==============================~~~~ months.
June 7,1961

4 weeks ended
May 3, 1961

4 weeks ende d
June 1,1960

559,129
520,587
38,542
551,149
7,980
1,172
6,808

566,102
528,252
37,850
558,829
7,273
259
7,014

527,819
525,448
2,371
521,225
6,594
16,656
-10,062

513,811
416,556
97,255
444,882
68,929
798
68,131

517,748
419,013
98,735
449,006
68,7 42
244
68,498

442,106
435,115
6,991
400,473
41 ,633
21,362
20,271

otwal reserves held .. . . .. .. . .. .
1,072,940
ith Fe dera l Reserve Bank. . • •
937,143
CUrrency and coin . • • . • • • • • . •
135,797
Required
996
Exce..
reserves ..... . ..... . . ,031
Borrowlr eserves . • • • • . . • • • • . . • •
76,90 9
Fre
ng s.... ... .. ... ..... ..
1,970
~eserv es .... .. .. . •• .. .. . .
74,939

1,083,850
947,265
136,585
1,007,835
76,015
503
75,512

969,925
960,563
9,362
921,698
48,227
38,018
10,209

Item

_

5 we eks ended

RESERVE CITY BANKS
Total rese rves held • • . • . . . .•. . .

With Federal Rese rve Bank....

ReC~.rre ncy and coin .. .. .• •....

E q Irod rese rves . . . . .••. . . •.•
Bxeess rese rves . ..... . .... .. . .
Forrowing s• • • • •.. •• ••. . •••• ••
C roe res erves •. .• •• ••• ••••••••
~UNTRY BANKS
o~ reserv es held . •••• •• • . • ••
C ith Fe deral Rese rve Bank....
R urrency and coin . ...• •• ..••
Eequirod reserves • ..... . ..... .

Bxe ess rese rv es . ... ..... . . . .. .
Forrowing s• • • ••. •. •• •. .•• ••.•

Al

reo rese rves • •• ••. .• ••..•••••

~ MEMBER BANKS

bonNOTE . -

mbe r
Beginning Nove mber 24, 1960, all currency a nd co in held
berby23 me1960

on' ks allowed os reso rves; during th e period December 1, 1959· Novem
Y Part o f such holding s wa s allow ed.

,

,

71\-

\f,"

./ "

g

Conditions in the petroleum in?ustry were generally improved
"- OIL and GAS ,'
m May ~nd early June, although
productIOn of crude oil in the
District and the Nation was limited. Gasoline prices have firmed at the retail, tankwagon, and refinery levels; and price cutting has virtually ceased in most interior markets. The seasonally
adjusted index of gasoli~e deI?and rose to 106 in May
from the 1021~vel establIshed III April, while seasonally
adj~sted .ga~oline stocks at the end of May failed to
deVIate SIgnificantly from a month earlier. On an unadjusted basis, gasol~e demand trended upward in
early June, and gasoline stocks declined moderately
Prices of heating oils have weakened; however, the de~
BUSINESS REVIEW

7: 1961

I

NATIONAL PETROLEUM ACTIVITY INDICATORS
(Sea sonally adiusted indexes, 1957·59
May
1961p

Indicator

CRUDE OIL RUNS TO REFINERY
STILLS (dail y ave rag e) • ••••••••
DEMAND (daily averag e)
Ga soline .. . .......... .... .. . .
Ke rosene • . ••.. .. . .. •... .. ...

Distillate fu el oil •••••••.. • ...••
Residual fu el oil• •. •• ••• •• • ••••
Four re fln ed p roducts • • •• ....

= 100)

April
1961p

May
1960

104

102

104

106
175
113
98
107

102
165
112
97
105

103
143
106
101
103

106
11 7
98
84
101

106
128
102
81
103

106
102
98
75
99

STOCKS (end of month)
Ga soline . ... .. ...... ....... . .
Kerose ne •••......... . ...... .
Di stillate f uel oi l . . •• . .. ... .. .. .

Residual fu el oil •• • . •• • . .• •.. ••
Four refln e d products . ..... . .
p -

Pre liminary.

SOU RCES , American Petroleum Institu te.
United States Bureau of Min es .

Federal Reserve Bank of Dallas.

mand for kerosene, distillate fuel oil, and residual fuel
oil in May decreased less than had been anticipated.
The demand for crude oil during May failed to offset
advances in new supplies; as a result, crude oil stocks in
the Nation rose about 2 percent during the month.
Daily average crude oil production in the District declined moderately in May but rose somewhat in early
June; similar movements were observed for national
output. Crude oil imports advanced about 20 percent
in May but decreased slightly during early June. Crude
oil runs to District and national refinery stills increased
moderately in both May and early June.
Statistical measures of drilling activity in the District
were mixed during May. The number of active rotary
rigs rose about 7 percent, while total well completions
and total footage drilled declined moderately.
Attempts have been made by state conservation commissions, as well as the United States Department of the
Interior, to limit new supplies of both domestic and foreign crude oil in order to avoid excessively high crude
inventories. Daily average crude oil production in the
District likely will decline in July, mainly because Louisiana plans to reduce its July-August crude oil production by about 50,000 barrels daily by decreasing its
depth-bracket allowable to an all-time low of 30 per-

cent of the March 1953 levels. Both Texas and NeW
Mexico have retained their June allowables, but slight
decreases in their daily average production are expected
during the longer month. Furthermore, for the second
half of 1961, the Department of the Interior has reduced import quotas for crude oil east of California by
23,395 barrels daily. At 670,933 barrels daily, the neW
quota is tIle lowest level since the mandatory import
program went into effect in mid-1959.
One factor vitally affecting the petroleum industry in
early June was labor unrest associated with striking
maritime unions, which has caused the temporary shutdown of several refineries on the Gulf Coast. A reduction in crude oil runs to refinery stills may be expected
from this development.
The seasonally adjusted Texas
industrial production index held
steady at 175 during May, as
total manufactures moved upward to balance a small decline
in the mining sector, but was 3 points above a year ago.
Both durable and nondurable goods output increased
along a broad front over the month-earlier and yearearlier levels to set new highs for the year. Production
in only three major manufacturing sectors - food,
electrical machinery, and textiles - declined slightly
from April; while metal products, cement, machinery,
transportation equipment, chemicals, petroleum products, lumber, furniture, apparel, paper, and publishing
industries showed the primary output gains during May·
Nonfarm employment in the District states increased
13,200 during May to 4,475,600, which is 90,00 0
above the low reached in February 1961, when cyclical
and seasonal pressures coincided. The May figure is
INDUSTRIAL PRODUCTION
(Seosonally adiusted indexes, 1947·49

May
April
March
Ma y
Area end type of index
1961 p
1961
1961
1960
T=E~
XA~S--------------------~--------------------Total industrial production •.. ... . .
Total manufactures • •....... . . . .
Durabl e manufactures . . • • •.... ..
N?~durabl e manufacture s•. • . . . ..
Mining • ••.•••• •• .•• •• ... • . .. .

MARKETED PRODUCTION OF NATURAL GAS
(In millions of cubic feet)

= 100)

==========================================~
~

175
223
260
205
129

175
220
255
204
131

176r
218r
252
202r
137r

172
217
252
202
129

164
163
167
162
128
297

160
15B
161
159
12B
294

155
153
154
157r
127r
291r

167
166
174
161r
127r
284r

UNITED STATES
1960

Third quarter
1960

Fourth quarte r

Area

louisiana .. . .. .. . . .. . . ...•. .
New Mexico . .. .... . . . . . . . . . .
Texa s . ... .. . ... .. .. ... . ... .

772,000
228,000
204,400
1,543,500

699,700
194,BOO
161,400
1,3B9,000

667,000
195,400
152,500
1,473,700

Total..... .... . . .. .. .. . ...

2,747,900

2,444,900

2,48B,600

Fourth quarter

Oklahomo • • • • .• .. .• .. .•. . • •

1959

Total industrial production •.. ... ..
Total manufactures . . . . •. . ... ...
Durabl e manufactur es ..• •• . . . . ..
N?~durabl e manufactures •.. . . . ..
Mining •••• ••• •••• ••. •• • . ...• •

Utilities •• .•••• ••• ••••••• . .. ..•

----~~-------------------------------------p Preliminary.
r -

Rev ised .

'SOURCES, Boord of Gove rno rs of the Fede ral Rese rve Systom.
SOU RCE, United 'S tates Bureau of Mines .

I

BUSINESS REVIEW

110

7:1961

Fedoral Rese rve Bank of Dalla s.

VA LU E OF CONSTRUCT ION CONTRACTS

NONAG RICULTURAL EM PLOYMENT

(In millions of dollars)

Five Southwestern Stotes

====================~~~

'

January-Apri l

Area and type
FIVE SOUTHWESTERN
STATES' ••••....••....••
Residential building •.. ••••
Nonresidential building . ...

Public works and utilities .. .
UNITED STATES •••••...••.•
Residential building . .....•
Nonresidentia l building . ...
Public works and utiliti es . ..

1

April
1961p
339
137
110
92
3,298
1,454
1,050
794

March
196 1
357
149
92
116
3,166
1,371
1,027
768

April
1960

1961p

429
145
92
192
3,360
1,480
1,048
833

1,336
530
407
399
11,154
4,660
3,683
2,812

Type of employment

1,291
540
324
427
10,806
4,677
3,599
2,531

Total nonagricultural
wag e and salary workers ••

Manufacturing . ..........
Nonmanufacturing • •....••

Mining ... .. ..... . ....
Construction .. ......• . •
Tran sportation and
public utilities •.. ..•. .

Arizona, Loui s iano, New Mexico, Oklahoma, and Tex as.

Trade .............. . .
Finance .............. .
S e rvice . ..............
Government . ... . ......

Pre liminary.
NOTE . - Details may not add to totals because of rounding .
SOURCE, F. W. Dodge Corporation .
P -

only 14,100 below the seasonal record established in
December 1960 and is almost the same as the yearearlier level. On a month-to-month basis, gains in
manufacturing, mining, construction, and trade emplOyment were especially pronounced.
Insured unemployment in Texas continued at rather
high levels through May, but total unemployment declined 2 percent from the Ap;il !e~~l to 192,400,
Which is 5.2 percent of the State s clvillan labor force.
In May last year, unemployment in Texas totaled 161,600, or 4.4 percent of the civilian labor force.
The value of April construction contracts in the District states totaled $339 million, or 5 percent below a
month earlier and 21 percent lower than in April 1960.

Percent change
May 1961 from

Number of persons

1960

1

May

196 1e

April
1961

1960r

4,475,600
767,900
3,707,700
241,900
295,400

4,462,400
763,000
3,699,400
241,000
290,900

391,000
1,097,400
219,500
599,600
862,900

391,600
1,093,700
220,000
599,200
863,000

May

April
1961

May
1960

4,476,600
788,200
3,688,400
246,600
309,900

0.3
.6
.2
.4
1.5

0.0
-2.6
.5
-1.9
-4.7

403,700
1,097,100
211, 100
579,800
840,200

-.2
.3
- .2

-3.2
.0
4.0
3.4
2.7

.1
.0

Arizona, louisiana, New Mexico, Ok lahoma, and Texas .
Estimated.
Rev ised.

e r -

SO URCES, State employment agencies .
Fe deral Rese rve Bank of Dallas.

Contracts for public works and utilities declined about
one-fifth from March to $92 million, but nonresidential
building contracts increased nearly one-fifth to $110
million. Residential contracts amounted to $13 7 million, which is 8 percent less than in the preceding month
and 6 percent below the year-earlier level. The total
value of construction contracts in the District states
during the first 4 months of 1961 was 4 percent greater
than in the comparable 1960 period; a 26-percent increase in nonresidential building outlays more than offset slight declines in residential building and public
works and utilities contracts.

ELEVENTH FEDERAL RESERVE DISTRICT
~ 00110. Hood Office Territor),

a:m:m Hou.ton Branch Territory

1;:;:;:;:;:1 Son Anlonlo Branch Te rritory
~

EI

POlO

Brench Territory

BUSINESS REVIEW
7:1961

11

I
I

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

CONDITION STATISTICS OF ALL MEMBER BANKS
Eleventh Fede ral Rese rve District

(Dollar amounts in thousands)
Debits to d emand
d e posi t accounts l

(In millions of dolla rs )

May
1961

Annual rate of turnover

April
1961

May
1960

259,729

10

12

88,137
360,351

16
20

4
13

47,078

4

18

May 31,
1961

May
1961

April
1961

May
1960

137,565

22.6

20.8

20.0

50, 137
178,002

20.8
23.6

17.8
19.6

19.9
21.0

35,825

16.0

15.6

16.1

ARIZONA
Tucson •••••••••••••• $

$

LOUISIANA
Monroe ••• ••.•• . ••••

Shrevep ort •..•...•..
NEW MEXICO
Roswell .... .........
TEXAS
Abil e ne .............
Amarillo ••••••••••••

90,072
2,805,562
30,176
177,725
66,490
59,058
668,687
22,410
93,649
108,229
118,129

5
11
22
9
2
-2
13
11
14
6
14
1
1
7
24
10
5
17
-2
3

1
7
10
1
8
-1
8
2
3
-3
9
-2
-8
7
9
9
-3
6
5
0

68,847
112,715
151,121
96,88 1
105,445
18,995
1,163,424
171,072
376,663
61,460
1,274,961
21,114
111,493
42,897
47,768
376,570
16,827
59,704
68,857
94,676

18 .0
24.0
19.8
20.5
21.8
9.6
32.2
23.2
25.7
17.3
25.9
17.3
19.1
18.8
15.1
21.2
15.8
18.5
18.1
15.0

17.0
21.1
15.8
18.5
21.5
9.7
28.3
20.6
22.9
16.2
22.6
16.8
18.6
17.9
12 .4
19.2
14.8
15.8
18.5

14.4

19.9
22.8
19.7
20.6
20.2
9.5
32.3
24.2
25.7
17.9
24.8
16.6
20.6
17.8
14.9
20.0
16.7
18.2
18.6
14.3

Total-24 cities •......• $ 10,302,317

12

7

$4,843,019

25.1

22.3

24.5

Austin .•••..••..•..•
Beaumont •••. • .• •• ••

Corpus Christi .• • • . ..•
Corsicana ••••••.••••

Dalla s .... .... . . ....
EI Paso •.... • ... • . .•
Fort Worth ..........
Galveston ••.•..•...•
Houston •••• • • •• • •••

Lore do • ... ....•...•
Lubbock •• •. ..•... •.
Port Arthu r ..........
San Angelo •••...•..
San Antonio .. ••.••••

Texarkana ' ... . . . ...
Tyler ..... ....... . ..
Waco ••...........•
Wichita Falls .......•

101,437
225,724
255,550
167,616
193,464
15.D9 1
3,206,912
341,979

799,062

April 26,
1961

May 25,
1960

ASSETS
loans and disco unts ••...... . . . . .. •. . .. • .
Unit e d States Gove rnm e nt obligations •....•
Othe r securities ••..• • ....••••••••..•..•
Reserves with Fe deral Reserve Bank • •••....
Cash in vault a ••• .1. ... • ... . •...• •.....•
8alances with bonks in the Un ite d States •...
Balances with ban ks in fo reign count ries e ....
Cash items in process of collection •• •• . ..•.
Other a ssets e • • • • •...•••...•• . •••....••

5,111
2,650
902
869
147
1,038
3
461
272

5,059
2,695
929
918
156
1,138
3
650
237

4,805
2,408
823
906
142
891

It e m

Percent
change from

Area

May 31,
1961

Demand deposi tsl

Deposits of individuals, partnerships, and corporations and of states and political
subd ivisions.
!! Th ese flgures include onl y two bonks in Texarkana , Texas. Total debits for all
banks in Texarkana, Texas-Arkansas, includin'g on e bank locate d in the Eig hth District,
amounted to $5 1,438,000 for the month of May 1961 .

TOTAL ASSETs e .... .. ... .. ..........

11,453

11,785

lQl44

LlA81LITIES AND CAPITAL ACCOUNTS
Demand de posits of bonks • •...•...••...•
Other d e mand d eposits ..... . ............
Time d e posi ts • • ••••• •.. • •...•....•....••

1,127
6,444
2,733

1,226
6,646
2,727

910
6,425
2,175

Toto d eposits ..... . ..... ....... . ....
Borrowings e •• .. .••........••........• •
Othe r liablllties e .......................
Total capital accountse •....••...••.... • .

10,304
16
127
1,006

10,599
86
118
982

9,5 10

TOTAL LlA81LITIES AND CAPITAL
ACCOUNTSe ••.. • .....••.••.•.••••

11,453

11 ,785

lQl44

(I n thousands of dolla rs )

Ite m

Jun e 14,
1961

May 17,
1961

Total gold certiflcate reserves ••• •.. •.......•
Discounts for member banks • •. ..•...•..••..
Othe r discounts and advances ..•. . .... .. •. •
U. S. Gov e rnm e nt securities ••• .•..•...•.....
Total e arning a ssets •••••.... . ..•. .. ...• • ..
Member bank reserve d eposits ..••... . .. • •..
Federa l Reserve notes in actual circ ulation •••• •

666,708
1,225
116
1,090,377
1,091,718
896,199
830,918

641,872
23,309
580
1,075,962
1,099,851
897,459
818,604

GROSS DEMAND AND TIME DEPOS ITS OF MEMBER BANKS
Eleventh Federal Reserve District
(Averag es of doily flgures. In millions of dollars)
GROSS DEMAND DEPOSITS
Dote

Total

Reserve
city banks

Country
banks

Total

Rese rve
city bonks

CountrY
bonks

1959, May •.... •
1960, May • . ... .
19610 January • . .
February . •
March •..••
April ... . . .
May ......

7,674
7,364
8,135
7,828
7,846
7,888
7,643

3,75 1
3,623
4,032
3,805
3,877
3,903
3,743

3,923
3,74 1
4,103
4,023
3,969
3,985
3,900

2,156
2,178
2,564
2,670
2,700
2,723
2,736

1,125
1,094
1,308
1,366
1,376
1,379
1,382

1,031
1,084
1,256
1,304
1,324
1,34 4
1,354

663,843
21,039

o

1,054,056
1,075,095
929,101
784,206

BUILDING PERMITS
VALUATION (Dollar amounts in thousand s)

----------------------------------Percent change ___
May 196 1
from

May
1961

5 mos.

May
1961

1961

5 mas
1961

Apr.
1961

May
1960

5 months,
1961 frorn
1960

~
A~
RI=
ZO
~
N~
A--------------------------------~~~~---------Percent change from

Are a

May
1961p

April
1961p

May
1960

April
1961

May
1960

ELEVENTH DiSTRiCT • •• ••.••
Texas •.••.•••••.•••••••
Gulf Coa st • •.• ••• • ••••
W est Texas • ••. •••••••
East Texas {prop e r) ••.. •
Panhandle ••..•• .. ••.•
Rest of State .. ........
Southeastern New Mexi co ••
Northern louisiana ••••••..
OUTSIDE ELEVENTH DISTRICT .
UNITED STATES ............

2,847.1
2,460.1
444.3
1,105.4
124.7
102 .9
682.8
276.8
110.2
4,214.9
7,062.0

3,011.2
2,629.6
470.0
1,191.3
135 .5
106.3
726.5
272.6
109.0
4,224.1
7,235 .3

2,795.1
2,416.5
450.4
1,067.8
120.2
107.9
670.2
265.5
113.1
4,013.2
6,808.3

-5.5
-6.5
-5.4
-7.2
-8.0
-3.2
- 6.0

1.9
1.8
-1.4
3.5
3.7
-4.6
1.9
4.3
-2 .6
5.0
3.7

7: 1961

---

==============================================~~

Area

(In thousands of barre ls ),

12

---

Jun e 15,
1960

DAILY AVERAGE PRODUCTION OF CRUDE OIL

BUSINESS REVIEW

=

TIME DEPOSITS

NUM8ER

p - Preliminary.
SOURCES, American Pe trol e um Insti tute.
Unite d 'S tates Bure au of Mines.
Federal Reserve Bank of Dallas.

142
152
940

--------------------------------------------------------------e -- Estimated.

1

CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS

2

490
277

1.5
1.1
-.2
-2.4

Tucson •••• • •••
LOUISIANA
Shreveport ••••
TEXAS
Abil e ne .• •••.•
Ama ri llo ••••••
Austin ...... . .
Beaumont • .•. •
Corpus Christi ..
Dallas ...... ..
EI Paso ...... .
Fort Wo rth ... .
Galveston ••• • .
Houston • •. • ••
Lubbock •• . •. •
Port Arthur • •..
San Antonio •••
Wo co • •..• • ••
W ichita Falls . •
Total-17 cities..

$

1,128

4,556

2,9 15

$ 19,865

-23

-4

26

3,242

6,725

2,558

18,317

-18

-11

62

143
309
365
306
320
2,842
688
678
156
1,716
278
237
1,308
291
372

619
1,468
1,690
1,516
1,540
10,699
2,928
3,018
638
6,925
1,165
954
5,967
1,280
1,017

1,068
2,805
5,324
1,176
1,Q98
21,049
6,164
7,447
221
34,785
3,588
790
5,229
2,237
2,512

6,079
13,965
24,982
5,959
8,122
93,193
31,251
25,578
2,704
103,348
20,943
3,423
21,629
9,089
10,511

-29
-4
- 18
-2
-32
55
73
-8
-25
120
15
25
56
61
12 1

-3 1
10
3
4
7
112
SO
36
-93
146
-1
- 13
5
67
-15

-26

14,379

52,705

$ 100,966

$4 18,958

41

49

23

-9
22

8

52
62
60
12
-29
21

5
-32
_10

6

_3

---------------------------------------------~