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