Full text of Review (Federal Reserve Bank of Dallas) : July 1974
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Federal Reserve Bank of Dallas
Business Review
.....
I
"
b~~'-----------------------------------~lSCOuntW' d
M
m owber Bank Borrowing Soared
tn
eVenth District Last Year
t
July 1974
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
Discount Window-
Member Bank Borrowing Soared
In Eleventh District Last Year
~-------------------------------------------------------------------------
~ernber bank borrowing in the
l'o:venth Federal Reserve District
th e 580 percent in 1973-from less
$9~n $.1~ million in 1972 to nearly
Yea rn~?n, the highest level in 20
est 1's. Ith loan demand and interYe rates rising during rpost of the
loa~' ~anks in the District found
sive: Ie funds scarce and expensho1't~ acquire. Some were "caught
nes and turned to the Federal
rnee~rve ~ank for funds to help
Othe theIr reserve requirements.
new rs availed themselves of the
o seasonal borrowing privilege.
ne ne fUnction of the Federal
h1'a~~e ~ank of Dallas and its
es m El Paso, Houston, and
San Antonio is to serve in a limited sense as a "banker's bank."
The Bank serves as a lender of last
resort when member banks in the
Eleventh District need to borrow
for certain purposes. But by no
means do such borrowings constitute an endless source of funds to
banks. Borrowing from Federal Reserve banks is a privilege of member banks but not one that lends
itself to unlimited use.
never be fully predicted, and sometimes unexpected changes occur
rapidly. When demand for bank
credit is heavy-as it was throughout most of 1973-banks seek additional funds from a number of
sources. These include the issuance
of certificates of deposit, the sale
of securities from portfolio, and
borrowing in the Federal funds
market, the Eurodollar market
through foreign branches, and the
commercial paper market through
Some reasons for the rise
affiliated holding companies.
Commercial banks face a continuThe rise in demand for funds in
ing problem of coordinating sources these markets usually increases
their cost. As funds from market
and uses of funds. Changes in deflows and credit demands can sources become more expensive
posit"
relative to borrowing at the discount window, member bank borrowing at Federal Reserve banks
~aily
usually increases.
III thea~erage member bank borrowings
The Federal funds rate, for exleventh District rise ...
ample, was below the discount rate
t.lILLIQ
160 ~llARS
for the first half of 1972 but was
above the discount rate during the
rest of the year. The spread widened still more in 1973, making the
discount window an increasingly
attractive source of funds as the
year progressed.
Daily average borrowing in the
Eleventh District rose as the rate
differential widened. In the early
80 ....
part of 1972, member bank borrowings were negligible. As the difference between the Federal funds
rate and the discount rate became
progressively larger, daily average
40 ...
borrowings rose substantially. And
when the differential reached its
high point of the year in September 1973, daily average borrowing
was near its peak.
Increased borrowing by member
1972
banks depends, of course, on a
'-...........
number of factors and cannot be
~~--------------------------------------
nUsiness-n--.-----------------------eVlew
I July 1974
1
attributed solely to differences between the discount rate and market
rates of interest. But rising market
rates of interest indicate an increased scarcity of funds, and there
are occasions when adequate funds
are simply not available at quoted
market rates. That is, even though
there may be a nominal price existing in a market such as the Federal
funds market, a sufficient volume
of funds at that price may not be
available. Such circumstances lead
many banks to seek the funds they
need from Federal Reserve banks.
Differences among banks ...
The largest amounts of advances
to banks in the District in 1973
were made by the Dallas and Houston offices. These two offices rank
first and second, respectively, in
terms of number of banks and
amount of banking assets in the
territories they serve. But as Houston is a rapidly growing area with
rapid changes in banking and
A total of 110 banks borrowed
from the Federal Reserve Bank
and its branches in 1973. Most of
these borrowers were comparatively small banks, having less than
$100 million in total deposits. But
31 were larger than that, and seven
had deposits totaling more than
$500 million.
That most of the banks borrowing at the Federal Reserve Bank
were comparatively small is to b~
expected. There are far mo:e s~ n
member banks in the DistrIct t a
large banks. Of the 626 member
banks in the District last yea:, of
581-or 93 perce~t-:had deposIts d.
less than $100 mllllOn at year-en
Nevertheless, there are ot~er out
reasons for small banks seeking f
the discount window. Because 0
their size, most small banks have
no direct access to the nationa~ns_
money markets, where large tr the
actions are the rule rather tha~
exception. As a consequence, t :he
Federal Reserve Bank is one 0 f n
few places where small banks ca U
borrow. Moreover, as many sma njbanks serve agricultural communal
ties, they have substantial seas _
de
variations in deposits and loan iIlg
mand. The new seasonal b?rro~3
privilege instituted in Aprill~ t
was intended primarily to ass lS 'asmall b~~ks facing se~sonal vr~nd
tions arlsmg from agncultura
other business credit needs.
compared with reserves supplied
through open market operations.
Initially, member bank borrowing from Federal Reserve banks
was called rediscounting. The term
had come into use in the early
1900's, when banks made loans
principally by discounting customers' promissory notes. Banks
earned their interest by giving borrowers less than the face value of
their promissory notes-by discounting the notes.
When a commercial bank borrowed from the Federal Reserve
Bank, the note offered as collateral
was again discounted, or rediscounted. The loan made by the
Federal Reserve Bank did not have
to be paid off by the commercial
sorY
'1
..
bank unt! t h e ongma1 Promis
lace
note matured.
Today commercial banks P a
little reli~nce on discounting;:dmeans of making loans, and reeral Reserve banks no longer ke
discount notes when they m~ s
loans to banks. Loans to ban { re
through the discount windoW ~ing
simply dollar advances. Bor~r teflll
banks still have to put up CO \e
for a loan, but the maturity dlinked
of the borrowing is no longer cilll
with the maturity of the finan
assets used as collateral. , 1 'nvestVarious types of finanCl a lent
ments, ranging from GovernJDus _
securities to certain types o{IC tetll1
tamer notes, can serve as CO ~ ",jnfor an advance at the disco un
banking practices, the branch there
had about twice the percentage increase in daily average borrowings
from 1972 to 1973 that the Head
Office had.
Because of their size, most
small banks have no direct
access to the national money
markets, and the Federal
Reserve Bank is one of the
few places where they can
borrow.
The discount window
Borrowing from a Federal Reserve
Bank is commonly referred to as
borrowing at the discount window.
When the Federal Reserve System
was created in 1913, member bank
borrowing was viewed as the principal tool of central bank policy.
In fact, the proportion of total
reserves injected in the nation's
banking system through such borrowing never averaged less than
37 percent throughout the 1920's
and reached a peak of more than
80 percent in 1921.
Open market operations gradually replaced borrowings as a way
of supplying reserves to the banking system. Today, the volume
of reserves supplied through the
discount window is very small
2
--r A.lthough 79 small banks borBowed from the Federal Reserve
n~nk last year, that number was
b large compared with the numo:r of member banks with deposits
In
lessess than $100 million. fact
th
,
III
an 14 percent of the 581
roember banks of that size borpr~ed a~ the discount window. The
ci .Portion of member banks exer1;~~ the borrowing privilege in
bank Increased with the size of
for th category, reaching 78 percent
'I' e l~rgest banks.
b~~ hIgh proportion of largeWind orrowers at the discount
tors ow r~flects a number of facbank TYPIcally, depositors at large
Chan s te~d.to be more sensitive to
POsitges In Interest rates than defore ors at.sm~ll banks and, therefund more mclmed to shift their
0fte ~ to markets or instruments
SUChng th~ ?ighest rate of return.
need ;olatility contributes to the
at th °dr.large banks to seek funds
e IS count window.
MEMBER BANKS INDEBTED TO FEDERAL RESERVE BANK, 1973
Eleventh Federal Reserve District
(Number of banks, by deposit size)
Bank deposit size
(Million dollars)
Less than $100 ..
$100 to $500 .. . . . .
$500 or more
All size banks . . .
Up
to
5
6
to
10
18
8
28
5
0
33
27
Moreover, larger banks are more
subject to sudden changes in loan
demand, particularly by businesses. Many businesses raise
funds either by drawing on their
lines of credit at banks or by issuing commercial paper-depending
on which is less expensive. As the
relative cost of borrowing at banks
and issuing commercial paper
changes, banks have sudden and
substantial shifts in demand for
business loans. These shifts also
Weeks of Indebtedness
11
16
21
to
to
to
15
20
25
23
3
4
30
7
7
2
16
0
2
All
26
to
30
31
to
35
banks
In
category
1
0
0
1
0
0
1
79
24
7
110
contribute to the larger percentage
of big banks borrowing from Federal Reserve banks.
... in liability management ..•
There are also some basic differences, however, in the way banks
are managed. Large banks tend to
rely more heavily on borrowing to
meet loan commitments. By contrast, small banks rarely extend
credit with funds acquired through
borrowing in money markets and,
~-----------------------------------------dow Th
ofte~s e type of collateral a bank
the F ~fiects the rate of interest
char e eral Reserve Bank will
betw~e, but in practice, the spread
lllUtn en the maximum and mini'I'h:at~ i~ only half of 1 percent.
bank mInImum rate at which
ferre~ ~an borrow is commonly rea.deqU 0 as the discount rate. The
'Period~cy of this rate is reviewed
tors o/cally by the Board of DirecIf the d~ach Federal Reserve Bank.
Chan ~rectors decide that a
l:'eco~e In the rate is in order, they
Boa.rdmend the change to the
l1eservof Governors of the Federal
accept e Sys.tem, which can either
'I'h o~ reJect the proposal.
fO rtn ~hdIscount rate is held uniroughout the Federal Re-
ll"..
""Ules n
S
.Q.eview
I July 1974
serve System-the only exception
being during short periods when
the rate is being changed. The discount rate is public knowledge, and
it is not subject to change through
bargaining by a member bank.
Member banks have an incentive to borrow at the discount window when the discount rate is
below market rates of interest.
Federal Reserve banks do not extend credit, however, so that banks
can profit from the difference between the discount rate and market rates on alternative sources of
funds. All Federal Reserve banks
are guided in the administration of
their discount windows by the following principle established in
Federal Reserve Regulation A:
Federal Reserve credit is available
on a short-term basis to a member
bank, under such rules as may be
prescribed, to such extent as may
be appropriate to assist such bank
in meeting temporary requirements for funds or to cushion more
persistent outflows of funds pending an orderly adjustment of the
bank's assets and liabilities.
Federal Reserve banks also assist member banks that lack reasonably reliable access to national
money markets in meeting longerterm seasonal needs for funds arising from expected changes in their
deposits and loans. And Federal
Reserve credit is available to assist
member banks in unusual or emergency situations.
3
Daily average balances
Daily average figures are more useful than
total dollar volume in the analysis of member bank borrowing at the discount window
since required reserves of member banks
are calculated on a daily average basis. The
minimum time for which daily average borrowings are calculated is a reserve period
of one week.
The daily average borrowing for a bank
is arrived at by adding its outstanding bor-
more often than not, have deposit
funds to lend large banks through
the Federal funds market.
This tendency of large banks
toward liability management also
carries over into reserve management. When large banks run short
of funds relative to the demand for
them, they tend to make up the
rowing each day of the reserve period and
dividing by seven. For example, if a bank
received a $10 million loan with a one-day
maturity every morning for a week, its
daily average borrowing that week would
be $10 million-or the equivalent daily average borrowing of a bank that received a
one-day advance of $70 million.
deficiency through borrowingsometimes from the Federal Reserve Bank. For example, daily
average Federal funds borrowing
for the seven large District banks
combined was $192.5 million in
1973, while their daily average required reserves totaled $85.9 million. Daily average borrowings
... as market rates exceed the discount rate
PERCENT
12----------------------------____________
10 -
FEDERAL FUNDS RATE
8-
from the discount window for thOse
banks were $7.6 million.
ds
This reliance on borrowed fun
stands in marked contrast to the
more traditional asset-manage~aU
ment approach taken at most s t
banks. Where large banks are apbto increase their borrowings 0 ~re
tain needed funds, small ban tS ts
more apt to sell some liquid aSse
to cover the shortage.
teaThere is another importan r
son for the lower proportion o!caUY,
small-bank borrowers. Histo r1 . t
many small banks in the DistrlC
have viewed borrowing from ~h~
Federal Reserve Bank as indl?a . glll
ing some sort of shortcorrun re
managerial ability and, theref~hi~
something to be avoided. But the
view is changing, partly due to er
high proportion of large me~~OW'
banks using the discount WIn
1
---------------~
t tO
Where large banks ar~ aPto
s
increase their borrowing II
obtain needed funds, srn~1
banks are more apt to se er
some liquid assets to co"
the shortage.
6-
4-
----
-------------------
2-r----------------,---------------__~
1972
SOURCE: Federal Reserve Bulletin
4
1973
or tioJl
Not only do a greater p~op tend
of large banks in the Distflct erVe
to borrow from the Federal :R~nS
1 Bank, they also seem to stay 1973 ,
debted for longer periods. In ed
most small banks that borroW
-MEMBER BANK BORROWING RELATIVE TO REQUIRED RESERVES, 1973
EleVenth
Federal Reserve District
---
(NUlIlber 1
o banks, by deposit size)
Dally average borrowings as perc ent 01 dally average required re serves
Bank deposit size
and~IIIIon dollars)
~rrowlng period
Less than $100
First quarter . ..
Second quarter
Third quarter . . :: :
Fourth quarter . ...
$ Total number
100 to $500
First qUarter
Second quart~~ ·
Third qUarter .. ::
Fourth quarter ....
$50 Total number
oor more
First qUarter
Second quarter
;hird qUarter . .
OUrth quarter .
Total number
----
Up
to
eVlew I July 1974
21 %
11 %
to
to
to
to
5%
10%
15%
20%
8
6
12
21
47
3
6
9
6
24
2
6
11
11
30
4
4
4
5
17
2
4
4
5
15
1
0
1
0
2
2
1
1
4
8"
Were ind b
Were th e t~d ten weeks or less, as
bank e majority of medium-size
the s. By contrast, all but one of
deb: even large banks were inL ed for more than ten weeks.
lllos~r~e banks also accounted for
row' 0 the total volume of borof s:;:gll Daily average borrowing
cOm a banks was $16.6 million,
lllectlared with $25.3 million for
lion tm-size banks and $52.9 milborroor. large banks. Daily average
in fac~lng of the seven large banks,
Perce accounted for close to 56
cO n of total borrowings in 1973,
mp
for ma~:d with less than 27 percent
18 pee lUlU-size banks and under
1\s ~cent for small banks.
borro:r as ~he volume of total
cerned lUgs In the District is conrelativ~(hen., sm~ll banks were of
to the y lllinor lffiportance. Loans
were ;e smaller banks, however,
tance tot matters of small imporo them.
'. -in ac '.
o
qUll'Ing reserves •..
ne of th
.
rowin f e maIn reasons for borg rom the Federal Reserve
nus'ltless n .
t
16 %
6%
26 %
31 %
36 %
41 %
46%
51 %
to
to
to
25 %
30 %
35%
40 %
45 %
50 %
or
more
Total
number
3
4
8
4
19
0
5
5
4
14
0
1
2
1
4
0
0
3
3
6
0
1
0
3
4
0
1
3
0
4
0
0
0
1
1
0
4
8
1
13
16
34
61
55
166
2
4
2
5
13
0
1
2
0
3
0
1
4
0
5
0
2
0
0
2
1
0
1
1
3
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
0
9
16
18
16
59
3
2
4
1
10
0
0
1
1
2
1
1
0
0
2
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
7
4
7
6
24
to
to
Although more small banks in the District
borrowed at the discount window in 1973 ...
SMALL
BANKS
MEDIUM
BANKS
LARGE
BANKS
o
20
40
NUMBER OF MEMBER BANKS BORROWING
5
Bank is to satisfy reserve requirei
ments. Therefore, one measure ~
the importance of loans at the
count window to a borrowing ban
is its borrowing relative to its required reserves.
.
The importance of discount \\'Indow borrowing to a bank, in fact,
seems to decline as the size of the U
bank increases. For example, sIlla
banks that borrowed used such
funds 46 separate times to satisfY
reover 20 percent of their reserve 13
quirements for one quarter. On n
occasions, they satisfied more tha
half their requirements for a quarter with borrowings. By contrast, e
medium-size banks borrowed IllOr
than 20 percent of a quarter's re-e
quired reserves 11 times and l~g
banks used their borrowing pl'lVilege to that extent only twice.
... a greater proportion of large banks borrowed ..•
di\
SMALL
BANKS
MEDIUM
BANKS
LARGE
BANKS
o
-------------------~
PERCENT OF MEMBER BANKS BORROWING
The importance of diSCOun~
window borrowing to a b~n
seems to decline as the size
of the bank increases .
. . . and large banks accounted for most of the borrowings
-----------------~
ow-
SMALL
BANKS
MEDIUM
BANKS
LARGE
BANKS
o
40
50
PERCENT OF DAILY AVERAGE BORROWINGS
6
60
As the year progressed, b?rr re'
ings as a percentage of requIred It
serves increased, reaching a pea a
in the third quarter. More than sed
third of the small banks that. u
d
the discount window in the th~o
quarter borrowed in excess of s
percent of their required rese~en'
Eight banks borrowed more t ~
half their required reserves th~
quarter. Similarly, six of the ~ d
medium-size banks that recel'i:or_
advances in the third quarter .
rowed more than a fifth of theIr
required reserves.
orIt is rare for large banks to b
row more than a fifth of their rt
quired reserves at the disco un}311t
window for an entire quarte.r . ~as
even the large-bank borrowln~'ve
heaviest in the third quarter. led
of the seven large banks borro:red
more than a tenth of their req rve
se
reserves from the Federal Re
------------------------------------------
g~~~NAL
BORROWINGS
MBER BANKS, 1973
EleVenth
_ _ _ Federal Reserve District
changes in their deposits and loans.
(The nature of the seasonal borrowing privilege is discussed in the
May 1973 Business Review.)
M
Dally
~nth
average
Much of the seasonal borrowing
--------~~----- at the discount window in the
APril
M
',,
$7,185,000
Eleventh District-like such borJu~~ ' "
5,689,876
rowing in several other Federal
JUly ,
11,722,521
Reserve districts-is associated
August ' , , , , , ,
14,145,378
with agricultural needs for credit.
Septemb'e'r ' ,
16,724,538
October
'
16,138,964
Linked with planting and harvestNovembe;
13,127,057
ing, flows of funds at agricultural
10,614,036
December
banks are unevenly distributed
_____
8,370,000
over the year.
Farmers growing wheat, for exBank 0
first' nly four had done so in the ample, incur about 60 percent of
olld qUarter, and three in the secthe total cost of their crops before
Olllyiuarter. In the fourth quarter, the crops are even planted. These
Wo borrowed to that extent.
costs and the other costs that must
'. and' seasonal needs
be assumed before the wheat is
S,·
In
marketed are financed by borrowlllce A '1
credit PfoI 1973, a new seasonal
ing and by drawing down deposits.
wind policy has made discount
As a result, when agricultural loan
tnetnbWborrowing availa,ble to
demand at small rural banks is
read er banks that do not have
heaviest, deposits are usually detnar? :ccess to national money
clining in response to the same seafor fu~J for .~eeting seasonal needs sonal pressures. Generally, funds
s arIsmg from expected
are flowing out of such areas in
-----------------
payment for agricultural inputs,
like seed and fuel, and it will be
several months before the flow is
reversed by the harvesting of crops.
Much of the seasonal borrowing at the discount window in
the Eleventh District is associated with agricultural needs
for credit.
Lacking access to national
money markets because of size,
many small rural banks have difficulty in meeting such seasonal demand for funds. But for more than
a year now, such banks have been
able to accommodate seasonal
credit demand with funds borrowed at the discount window.
The volume of borrowing resulting from this new policy was still
comparatively small in the Eleventh District last year, accounting
for only 9 percent of the total. Only
33 of the roughly 300 banks quali-
~------------------------------------------------------How the discount window helped a bank
:\n experience of one of the member banks
District illustrates how
b orrow~ng at. th~ discount window can aid
anks m adJustmg to unforeseen circumstances. The bank was fairly small but imbortant t? the 'community it served. It had
een servmg the community well financing
a multitude of local projects, add had cafable management. But the deposit strucure of the bank was somewhat unusualnearly half its deposits were held by the city
~overnment. When the city government suddenly decided to change banks, the withb rawal resulted in a drastic decline in the
ank's deposits.
h Faced with this loss of funds, the bank
ad only two alternatives-either borrow
money or sell a large part of its financial
assets. As it turned out, selling its assets
n
b the. Eleventh
was really not feasible. The market price of
the assets was so low that the bank would
have incurred huge losses by selling its securities rather than holding them .to maturity. Borrowing, therefoJ.le, was the only
practical recourse.
The Federal Reserve Bank of Dallas
loaned the bank funds to cover the withdrawal, and the bank repaid the advance
as its assets matured. In time, the volume
of the bank's loans and investments fell to
a level consistent with the bank's new , deposit level.
This example is, admittedly, extreme. A
bank need not face such problems before
it can borrow from the Federal Reserve
Bank. But the example clearly illustrates
one of the useful services the discount window was established to provide .
...............
l!I S
itles--------------------------------------S
lleView I July 1974
7
made to large liability-managefying for seasonal borrowing took
ment banks. These banks also led
advantage of this privilege. And
other banks in the number of
only five of those 33 banks had
deposits of more than $100 million. weeks they were indebted.
But some small banks need to
This year, however, 316 member
banks qualify for seasonal borrow- serve their local communities better, and a bank managing its porting. And with increases in the
folio in such a way as to ensure
prices of such agricultural inputs
that it will never have to borrow is
as fuel and fertilizer, seasonal borrowing in 1974 could easily exceed often following too stringent a polthat of 1973. In fact, seasonal loans icy with respect to local loans.
With the new seasonal borrowing
have already been extended to
banks that did not borrow in 1973. privilege, a larger share of member
bank borrowing from the Federal
Concluding comments
Reserve Bank of Dallas could go to
Member bank borrowing in the
smaller banks in the years to come.
Eleventh District was heavy in
1973. Most of the advances were
-Clifford L. Fry
New member bank
The Colonial National Bank, San Antonio, Texas, a newly organized institution
located in the territory served by the San Antonio Branch of the Federal Reserve
Bank of Dallas, opened for business June 10, 1974, as a member of the Federal
Reserve System. The new member bank opened with capital of $240,000, surplus
of $240,000, and undivided profits of $270,000. The officers are: Robert T.
Huthnance, President; Eugene A. Wink, Jr., Vice President and Cashier; and
Leighton E. Brown, Vice President.
New par banks
The Bank of St. Joseph & Trust Company, St. Joseph, Louisiana, an insured
nonmember bank located in the territory served by the Head Office of the Federal
Reserve Bank of Dallas, and its branch at Waterproof, Louisiana, were added to
the Par List on June 1, 1974. The officers are: William W. Watson, President, and
Jack M. Grace, Jr., Cashier.
The North Texas Bank, Lewisville, Texas, an insured nonmember bank located in
the territory served by the Head Office of the Federal Reserve Bank of Dallas,
was added to the Par List on its opening date, June 6, 1974. The officers are:
Ted Mapes, President, and Gene Francis, Vice President.
The Heights Bank, Harker Heights, Texas, an insured nonmember bank located
in the territory served by the Head Office of the Federal Reserve Bank of Dallas,
was added to the Par List on its opening date, June 17, 1974. The officers are:
Roy J. Smith, President; W. L. Smith, Executive Vice President; and E. P.
Hardaway, Cashier.
----------------------------------------------------~
8
Federal Reserve Bank of Dallas
July 1974
Statistical Supplement to the Business Review
........
---------------------------------------
Total
d'
banks :re It at weekly reporting
tinUed In t~e Eleventh District conto nse considerably more
tha
Jun~ ~sual in the four weeks ended
there Wa Counter to recent trends,
2.
.
POsit
s a Sizable net inflow of del'ell} ~,and although loan demand
to Il}al~ed strong, banks were able
tions~ e co~traseasonal net addiseCUrit? their holdings of municipal
n les.
Cant1al estate loans rose signifi?oth y r~o~e than usual, re.flecting
In l'esPd Ice ~creases and slight gains
Distd entIal construction in the
loan dct. Most of the increase in
bUsin ellland, however, came from
bOl'l'o~.ses. Some of this increased
riSing ~g doubtlessly was due to
COsts :r~c~s and, therefore, higher
apPear OIng business. But it also
\\reak s that with capital markets
turne~'tSOllle businesses may have
fol' fund 0 banks to meet their needs
In s.
crease . I
Pl'Olllpt SIn oan demand have
Sively f: d ba~k~ to bid more aggresSUltih .r CD. s In recent weeks , reeD's g In a SIzable increase in large
its, Il}~utstanding. Demand deposhalf as reover, declined only about
\\reek p ~uch as usual in this fouren d C
.
.
~lldi\1id O. heckmg accounts of
~llCI'eas~~ls a~d businesses, in fact,
~llcrease notICeably. Most of the
III busi ,however, may have been
Cl'ease:ess accounts reflecting-in~uired . COlllpensating balances reIII loan III connection with the rise
s.
~
l\re\\r Car
~allally a~~les in Texas fell at a sea-
In ~ay A Just~d rate of 13 percent
l'egist . fter Increasing in April
i~at h:Ji~ns resumed the declin~
IeI'. De egun seven months earCalltin alers suggested that this
\\rag du~ed ~lug~hness in demand
prltnanly to tight credit
markets and the high cost of gasoline. Together, these two factors
held new car sales for the first five
months of the year well below the
total for that period last year.
Seasonally adjusted department
store sales in the Eleventh District
rose 2 percent from mid-May to
mid-June. Sales, which had trended
upward for the past six months,
were 10 percent higher than at
year-end 1973. At least half the
increase, however, was attributed to
higher prices.
oil embargo. In durable goods manufacturing, the output of nonelectrical machinery increased for the
first time since January, rising over
3 percent.
Mining was little changed from a
month before. The output of utilities, however, was lower than in
April-largely due to a reduction in
the distribution of electricity.
Agricultural conditions in the Eleventh District on June 1 were mixed.
Drouth plagued most western parts
of the District, while in eastern
areas agricultural conditions were
generally good. Lack of moisture
Employment in the five southwestleft range and dryland crop condiern states was highlighted by sharp
tions gen~rally poor in Arizona,
contrasts in May. The number of
New MeXIco, and West Texas. With
jobholders rose 0.3 percent, the
poor grazing conditions, supplemenlargest monthly increase this year.
tal feeding of livestock increased.
Jobless statistics, however, were
Losses of dryland wheat continalso up significantly-due in part to
the largest monthly gain in the civil- ued to mount. As a result, the forecast for winter wheat production in
ian labor force since last October.
District states dropped sharply to
Total unemployment rose sub233 million bushels on June 1-17
stantially for the third consecutive
percent less than the 1973 crop but
month, resulting in a 4.8-percent
still 55 percent more than in 1972.
unemployment rate-up from 4.4
Increased supplies of beef compercent in February. Much of the
bined with sluggish demand for
weakness in the past few months
meat to depress slaughter cattle
has been in the building trades,
prices below year-earlier levels. On
where the loss of jobs by construcJune 1, the number of cattle on feed
tion workers continued unabated.
in both Texas and Arizona was the
lowest in two years.
The seasonally adjusted Texas inThe number of head placed on
dustrial production index rose
feed in Texas in May was only 45
nearly 1 percent in May, the largest
percent of the total a year earlier.
monthly advance since industrial
In Arizona, placements were about
output in the state leveled off last
half the year-earlier level. With the
fall. Increased manufacturing actislowing in demand for feeder calves,
vity accounted for the gain as nonthe price for feeder cattle dropped
manufacturing output fell slightly.
drastically.
Petroleum refining increased
A moderate rise in livestock prosharply for the third consecutive
duction and an outlook for inmonth, as oil imports continued to
creased crop output caused farm
climb. The flow of foreign oil to
prices to slump. Prices for most
state refineries has now surpassed
(Continued on back page)
the rate prevailing prior to the Arab
CONDITION STATISTICS OF WEEKLY REPORTING COMMERCIAL BANKS
Eleventh Federal Reserve District
(Thousand dollars)
June 12,
1974
ASSETS
Federal funds sold and securities purchased
under agreements to resell ..
Other loans and discounts, gross .....
Commercial and Industrial loans .
Agricultural loans, excluding CCC
certificates of Interest .............. .
Loans to brokers and dealers for
purchasing or carrying :
U.S. Government securities .. ..
Other securities .................. ................ ..
Other loans for purchasing or carrying:
U.S. Government securities ........................... .
Other securities .................................. ..
Loans to nonbank financial Institutions:
Sales finance, personal finance , factors ,
and other business credit companies ....
Other .
Real estate loans ................................ .
Loans to domestic commercial banks
Loans to foreign banks .
. ...................... .
Consumer Instalment loans .......
.. .. .
Loans to foreign governments, official
Institutions, central banks, and International
Institutions .
Other loans .
Total Investments .
Total U.S . Government securities ..
Treasury bills ........................................ ..
Treasury certificates of Indebtedness ..
Treasury notes and U.S. Government
bonds maturing :
Within 1 year ..
1 year to 5 years ........ ..
After 5 years .. .. .............................................. .
Obligations of states and political subdivisions:
Tax warrants and short-term notes and bills .
All other ........................................................... .
Other bonds, corporate stocks, and securities:
Certificates representing participations In
federal agency loans .......................... .
All other (Including corporate stocks) ..
Cash Items In process of collection ......
Reserves with Federal Reserve Bank ..
Currency and coin .......... .. ...................... .
Balances with banks In the United States ........ .. ..
Balances with banks In foreign countries .............. ..
Other assets (Including Investments In subsidiaries
not consolidated)
TOTAL ASSETS ...
May15,
1974
1,506,733
1,311,149
10,256,436 10,166,471
4,579;648
----
June 13,
1973
1,049,369
9,619,782
4,510,536
4,343,908
263 ,734
273,490
268,353
1,263
48 ,915
1,264
46,014
400
54 ,379
3,851
447 ,382
3,789
448,710
5,016
500,796
145,976
754 ,637
1,529,214
46,037
70 ,939
1,045,369
156,615
760,703
1,497,064
45,512
72 ,370
1,039,665
196,701
655,041
1,360,442
31,366
65,293
1,031 ,970
127
1,319,326
4,212,632
17
1,308,722
4,240,139
500
1,105,615
3,699,945
956,514
114,035
0
1,002,433
162,003
0
929 ,596
147,318
0
136,028
529,747
176,704
116,490
539,345
182,595
146,700
468,315
167,263
177,564
2,792,375
176,326
2,776,992
11,629r
272,759r
1,612,389
862,057
126,694
479,415
31,175
8,370
240,496
1,463,700
722 ,698
116,711
401,860
15,382
659,566
----
827,840
----
790,730
Eleve n t h Federal R eserve D istri c t
(Million dollars)
TOTAL ASSETse
Total deposits .
Borrowings .......... .
Other lIabllltles e .
Total capital accoun tse .
TOTAL LIABILITIES AND CAPITAL
ACCOUNTSe ............................ ..
e-Estlmated
TOTAL LIABILITIES, RESERVES , AND
CAP ITAL ACCOUNTS ..
~
6,878 '\ 9
7165,416
5'139,838
'543,154
118,145
1,181 ,800
7,048,206
5,189 ,892
438,208
62,745
1,177,713
1,924
65,631
112,093
7,553 ,722
1,157,709
4,209,691
2,066,475
7,177
86,087
42 25
49:444
99,48 1
6,640,816
1 158,548
4:070,666
13,261
13,322
4,908 ,222
494,9
90,2 07
1,231,580
3,103
62,877
116,499
7,361 ,723
12,162
14,140
1,185,5~ri
3,604'~9
1,718, 25
2,017,~~~
30'~28
89,
86:538
---19,752,764
12 400
'120
2,414,~~~
2896,337
22 1, 10
'196,434
547,1
535,906
162,015
176,417r
13 965
19,642 r 1202:075
1,319,652 ~
2,671 ,264
166,603
573 ,267
179,607
19,437
1,340,456
80 197
-
19677~
== =
r-Revlsed
DEMAND AN D TIME DEPOSITS OF MEMBER BANKS
E l eventh Federa l Rese r ve D istrict
(Averages of dally figures . Mill ion dollars)
~
DEMAND DEPOSITS
May 29,
1974
Apr. 24,
1974
May 30,
1973
20 ,388
2,224
6,687
1,948
378
1,431
35
2,110
1,569
20,465
2,301
6,592
1,856
363
1,286
23
1,614
1,621
18,404
2,317
6,042
1,438
335
1,377
18
1,952
1,478
36,770
36,121
33,361
Total
Adjusted '
U.S.
Government
1972: May .
1973: May .
June
July ......
August.. ........
September ..
October ......
November ...
December .
1974: January .
February
March ..
Al?rll ..
May ..
CONDITION STATISTICS OF ALL MEMBER BANKS
LIABILITIES AND CAPITAL ACCOUNTS
Demand deposits of banks ..
Other demand deposits .
Time deposits .
-
----
Total demand deposits ........................................ .
Individuals, partnerships, and corporations ..
States and political subdivisions ...
U.S. Government ..........
Banks in the United States .
Foreign :
Governments, official Institutions , central
banks, and International Institution s .
Commercial banks ................... ..
Certified and officers' checks, etc.
Total time and savings deposits .................. ..
Individuals , partnerships, and corporations:
Savings deposits ......................................... .
Other time deposits .................. .
States and political subdivisions ...................... ..
U.S. Government (Including postal savings) .. ..
Banks In the United States ........................... .
Foreign :
Governments, official Institutions, central
banks, and Intern ational Institutions .
Commercial banks .................................... .
Federal funds purchased and securities sold
under agreements to repu rchase .......
Other liabilities for borrowed money .
Other liabilities ......
Reserves on loans .... ,""
Reserves on securities .
Total capital accounts ................. .
Date
r-Revlsed
Item
44
13,518,9
14,601 ,928 14,527,139
Total deposits .
19,752 ,764 19,677,529 18,060,197
ASSETS
Loans and discounts, gross
U.S. Government obligations
Other securities ....................................... .
Reserves with Federal Reserve Bank ..
Cash In vault ............................ .
Balances with banks In the United States .....
Balances with banks In foreign countrles e .
Cash Items In process of collection .................. .
Other assets e .
1974 ~
145,947
2,575,536
9,920
276,259
1,500,440
604,057
130,515
446 ,925
35,436
-----
June 13,
1973
May 15,
June 12,
1974
LIABILITIES
12,266
13,136
13,218
13,259
12,941
13,039
13,289
13,455
14.006
14,384
13,949
13,933
13,984
13,553
8,530
9,502
9,551
9,567
9,492
9,442
9,461
9,816
10,086
10,276
10,062
10,150
10,289
9,860
364
341
279
261
172
208
239
167
244
302
264
260
236
278
~
1,643
11,937
15,116
1,730
11,737
13,326
29,154
3,636
1,431
2,547
28,696
3,543
1,351
2,531
26,793
3,018
1,266
2,264
2,660
2859
2'884
2'868
2'857
2'854
2'863
2'871
2:883
2 900
2:909
2,95 8
2,97 5
11,075
13,336
13,374
13,396
13,507
13,618
13,795
13,953
14,154
14,533
14,919
15,126
15 ,14~
15,148
1. Other than those of U.S. Government and domestic commercial
Items in process of collection
S c8
s
banks, Ie
sn
RESERVE POSIT IONS OF MEMBER BANKS
El eventh F ederal R eserve D istrict
(Averages of dally figures. Thousand dollars)
______________________
1,749
12,115
15,290
savings
Tot al
~-::;
nd
a
d
Item
Total reserves held ................... ..
With Federal Reserve Bank .
Currency and coin
Required reserves .
Excess reserves .
Borrowings .......
Free reserves .
5 weeks ended
June 5,1974
1,944,876
1,624,941
319,937
1,963,935
- 19,057
126,241
- 145,298
4 weeks ended
May1 , 1974
2,017 ,914
1,693,850
324,064
2,013 ,092
4,622
114,280
- 109,458
5J~~:ki,~973
4
1 ,747,8~0
1,459,2
44
288,636
1,751 ,082
_ 3,1
11
96,993
_ 100,0
BANK DE
BITS, END-OF-MONTH DEPOSITS, AND DEPOSIT TURNOVER
SMSA's '
(Do
In
Eleventh Federal Reserve District
liar amou
........
nts In thousands, seasonally adjusted)
DEBITS TO DEMAND DEPOSIT ACCOUNTS '
DEMAND DEPOSITS'
Percent change
Standard metropolitan
statistical area
~
~RIZON
lOUISI.t Tucson
......................
......................... ,." ...
~r~~oe~ort ::: "
NEW ME NA:
TEXAS XICO: Roswell '
: Abilene
.... ................ " ....
Amarillo .....
AUstin .....
....... .. ...
. ..
g~:nio~t-Port· Arttiur_oran~e
., .......... ,.,,,.,
Bryann~lIIe-Harlingen-San enlto ··· ·
C
- ollege Station
... ....
.. ..
orpus Christi
CorSicana'
. .
.
Dallas
. ................... ... , ......... ..........
............ " ..........
.. ................
EI Paso
FOrtWo'rtii ................ , ............
Galvest
...... .. ........
... , ......... " .........
Housto~n- Texas City
Killeen-Te;;; ........
Laredo
pie ... .... , ...............
~~~~~~k~~:::::::::::::: ...... ::..
......................... ,,'
.............................. ,
......... , ........... , ... ,', ...
............. , .. , ..... ,,",.
....................
T~erman-Denlson '
...
." ......... .........
xa rkan (
.
~!~~ ~~~xas-Arkansas)
Midland - arr-Edlnburg ..
Odessa .
San Angeio
~an Antonio
.
.. .
...
"
s'
Apr.
1974
May
1973
5 months,
1974 from
1973
$16,586,990
5,190,701
21,534,300
1,532,418
4,187,539
11,971,843
18,742,764
10,059,474
4,158,896
1,730,419
11,202,251
766,756
276,831 ,745
13,186,750
38 ,765,934
4,147,386
218 ,851 ,985
2,629,250
1,987,430
9,846,811
3,798 ,745
3,680,792
2,687,069
2,662,081
30,404,108
1,718,246
2,104,978
3,617,720
5,611,243
4,841,766
9%
- 8
12
20
6
2
- 7
- 8
8
- 9
- 6
7
8
- 5
- 2
4
1
- 10
12
- 4
-5
14
1
1
0
0
- 3
2
9
3
22%
14
34
29
35
27
43
30
33
3
35
22
44
25
24
27
32
9
45
28
12
46
9
30
13
20
8
23
25
46
30%
13
23
28
35
27
37
33
26
22
44
16
45
28
24
15
30
12
35
52
22
38
23
34
15
14
8
11
16
42
34%
34 %
T
WIChlts"Fiiii
Otal- aQ
centers
1. De
............................................................................ $735,038,390
2.
Annual rate
of turnover
May 1974 from
May
1974
(Annual-rate
basis)
3%
May31 ,
1974
May
1974
Apr.
1974
May
1973
$358,691
129,082
354 ,090
51,719
45.2
40.5
57.1
28.7
157,975
248,917
454,620
326,299
127,744
62,969
301 ,797
42 ,273
3,140,811
327,647
910,187
137,585
3,735,664
120,205
67,455
242,162
159,010
203 ,442
115,986
92 ,794
903,487
85,478
91,044
141 ,855
158,676
182,372
26.8
47.6
45.4
31 .4
31 .7
27.5
37.5
17.9
87.5
41.6
43.0
30.1
58.8
21.6
29.7
39.4
23.9
18.1
23.1
28.3
33.6
19.9
22.6
25.6
34.9
27.6
40.6
44.1
51 .1
23 .1
25.4
46.8
51 .7
34 .6
29.8
30.7
40.9
17.0
81 .9
43.7
44 .2
28.7
58 .8
24.1
27.2
40.3
25.5
16.2
23 .3
27.8
34.0
20.0
22.8
25 .3
32.3
28.3
40.6
38.1
49 .5
25.0
22.7
41 .9
28. 0
26.8
25.3
28.6
29.2
15.3
63.0
33.6
35 .6
24.7
48.7
20.4
22.2
34.7
19.4
15.4
24.9
22.2
29.3
16.8
21 .4
23 .2
28.2
22 .4
54 .8
53 .6
43.2
$13,432,036
Co~~flts Of IndiVidual s, partnerships, and corporations and of states and political subdivisions
Y baSis
CONDITIO
(Tho
N OF THE FEDERAL RESERVE BANK OF DALLAS
us
~Ollars)
BUILDING PERMITS
June 19,
1974
264 ,629
179,683
0
119,527
3,500,214
3,799,424
1,557,918
632,969
56,275
0
52,952
3,213,532
3,322,759
1,719,105
2,467,527
2,332,995
\tf\LlJl: OF
(1.1i1l1ond
CONSTRUCTION CONTRACTS
~)
~IVE
Area
and type
May
1974
January-May
Apr.
1974
VALUATION (Dollar amounts In thou sands)
June 20,
1973
2,511,357
~I na~tual '
May 22,
1974
432,745
100,831
0
112,626
3,522,446
3,735,903
1,590,670
Item
T01al
lOa gOld cerllf
Dth~S to mem~cate reserves
~ed 'loans
r banks .
USer
..
T~tal
y Obligations
l.1 ern
ent securities . .
~eder
~ssets .
.
clr
eServe deposits
STSOUTH
RATES' WESTERN
eSlde
1,21 2
982
~onres~lal bUilding
479
419
UNI~nbulld~rilal bUlldl'ng
506
371
R ED STAT construction '
228
192
Nesldentl ES
10,158
8,929
N
onreSld al bUilding
'"
3,862
3,924
O nbulld~ntlal bUlldln .
1. ~
n9 constructT
...
3,120
2,842
"R'i!on a L
on ..
3,176
2,163
NOTevlsed ' OUISlana N
SOU~: Detail
, ew Mexico, Oklahoma, and Texas
CE o F s may not
. . W. DOdge a~d ~o totals because of rounding.
, c raw-Hili, Inc .
Mar.
1974
1974
1973r
987
406
402
179
7,911
3,374
2,752
1,785
4,789
1,952
1,886
951
39,366'
16,068
13,190
10,108
4,901
2,499
1,678
724
40,223
20,256
12,493
7,475
Percent change
May 1974
from
NUMBER
Area
May
1974
5 months,
1974 from
1973
5 mos.
1974
May
1974
5 mos.
1974
Apr.
1974
May
1973
2,603
$9 ,712
$40,933
51 %
- 34%
-51%
ARIZONA
597
Tucson ...
LOUISIANA
Monroe57
West Monroe ..
Shreveport ...... 956
TEXAS
73
Abilene ....
432
Amarillo ......
541
Austin .....
252
Beaumont .
79
Brownsville ......
Corpus Christi .. 243
Dallas ................ 1,734
24
Denison ...........
722
EI Paso ...
410
Fort Worth ...
42
Galveston ..
2,645
Houston .....
64
Laredo ...
212
Lubbock .......
75
Midland .
127
Odessa ......
101
Port Arthur .....
63
San Ang elo ....
San Antonio .... : 1,922
18
Sherman .......
74
Texarkana ....
278
Waco ...............
83
Wichita Falls
304
2,836
1,160
5,189
7,616
38 ,584
6
- 53
- 77
2
-42
- 10
390
1,472
2,322
1,027
539
1,259
7,162
102
2,608
1,874
287
10,478
185
825
371
526
373
347
7,900
149
357
1,073
370
1,575
4,117
14,025
1,860
845
17,866
44,113
163
18,556
7,010
21 ,755
86,313
1,446
7,516
1,166
880
239
812
13,141
1,458
709
2,863
1,822
6,138
24,845
95 ,894
24,457
12,255
31,765
156,575
832
90,977
86,218
27,281
320,046
2,426
63 ,073
16,788
9,361
1,121
4,634
97,818
3,273
2,876
18,278
7, 158
16
- 8
-25
-87
-23
497
23
79
12
-79
2,076
34
712
-17
-15
- 20
31
- 14
- 40
105
14
- 23
- 37
- 58
- 1
- 22
- 39
- 72
240
34
- 42
-5
- 15
1,530
45
- 37
14
- 33
- 29
- 87
- 19
- 31
101
127
135
- 51
- 58
9
- 12
90
- 14
12
8
- 43
23
52
377
- 4
- 79
61
123
43
- 70
- 3
- 4
4
50
4
- 32
Total-26 c ities ... 11 ,824
47,739
$266,31 1 $1,191 ,222
4%
19%
2%
LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT
DAILY AVERAGE PRODUCTION OF CRUDE OIL
(Thousand barrels)
Five Southwestern States'
Percent change from
Area
May
1974
Apr.
1974
May
1973r
FOUR SOUTHWESTERN
................ ..
STATES
Louisiana .... .. .
New Mexico ......... .
Oklahoma
Texes .............. .
Gulf Coast
West Texas ...
East Texa s (proper) ...
Panhandle
Rest of state
UNITED STATES
6,420.9
2,036.3
271 .1
516 .3
3,597.2
706.7
1,885.8
237.7
58 .0
709.0
8,980.5
6,475.7
2,081 .5
263.0
520.1
3,611 .1
708.9
1,893.1
238.3
58.9
711.9
9,040.4
6,679.5
2,313.5
279.5
528.2
3,558.3
701 .9
1,820.7
208.5
62.8
764.4
9,303.4
Apr.
1974
- 0.9%
- 2.2
3.1
-.7
-.4
-.3
- .4
-.3
- 1.5
- .4
-.7%
(Seasonally adjusted)
May
1973
- 3.9%
- 12.0
- 3.0
- 2.3
1.1
.7
3.6
14.0
- 7.6
- 7.3
-3.5%
r-Revlsed
SOURCES: Am erican Petroleum Instltule
U.S. Bureau of Mines
Federal Reserve Bank of Dallas
~
percen9t7c:rr~~
May 1,. ____
Thousands of persons
-
MaY
Apr.
1913
May
Apr.
May
Item
19~
1973r
1974
1974p
-:----------------------::2.1'1>
0.4%
2.3
Civilian labor force
8,689.9
8,920.7
8,888.8
.3
9.8
Total employment .... :: .. :: ..........
8,303.6
8,471 .6
8.496 .7
Total unemployment.. ..............
417.2
386.3
'.3
1.6
424 .0
'.1
Unemployment rate
4.5%
4.8%
4.7%
3.8
Total nonagricultural wage
.0
7,166.7
and salary employment ........
7,436 .8
7.434.8
3.2
_.1
3.5
Manufacturing ......................
1,255.5
1,295.1
1,296.4
-,2
2.8
Durable .......
699.0
723.2
724.5
.0
Nondurable
556.4
571.8
571 .9
3.9
.1
4.1
Nonmanufacturlng .
5,911 .2
6,141.8
6,138 .4
.4
3.2
235.6
Mining ...........................
244 .4
245.3
- 2.2
484.7
Construction ...........
511 .8
500.4
3.5
Transportation and
-.2
3.1
488.7
506 .8
public utilities ..........
506.0
.4
5.0
1,719.0
1,775.8
Trade ................................
1,782 .5
.1
4.2
390.0
409 .0
Finance .........................
409.5
.3
3.9'1>
1,181.3
1,227 .8
1,231.4
Service ............................ .
1,411.8
Government ......
1,466.7
1.462.9
~
--~~~~~~~~~~~~~~~-----
1. Arizona, Louisiana, New Mexico , Oklahoma, and Texas
2. Actual change
p-Prellmlnary
r-Revlsed
NOTE : Delalls may nol add to lotals because of rounding .
SOURCES : State employment agencies
Federal Reserve Bank of Dallas (seasonal adjustment)
INDUSTRIAL PRODUCTI ON
(Seasonally adjusted Indexes, 1967 - 100)
Area and type of Index
TEXAS
Total Industrial production
Manufacturing .................
.... " ..... ........
Durable ....
Nondurable .........
Mining ............
.' ....................
Utilities ..
UNITED STATES
Total Industrial production ........
Manufacturing
Durable
Nondurable
Mining ............................
Utilities .........................
May
1974p
Apr.
1974
Mar.
1974
May
1973
140.6
145.5
160.4
134.7
121 .6
167.7
139.3
143.6
158.7
132.7
121 .2
169.4
138.1r
143.3r
159.0
132.0r
117.7r
166.8r
135.9
140.6
156.1
129.3
116.7
158.1
125.4
125.7
121.9
131 .1
111 .6
145.6
124 .9
124.8
120.5
131 .0
111.7
146.0
124.5r
124.5r
120.2r
130.9r
112.5r
146.3r
124.9r
124.9
121 .9r
129.2r
109.1r
149.5
p-Prellmlnary
r-Revlsed
SOURCES: Board of Governors of the Federal Reserve System
Federal Reserve Bank of Dallas
major farm commodities declined
sharply from mid-April to midMay, causing the index of prices
received by Texas farmers and
ranchers to drop 5 percent. As a result, average prices were only 8 percent higher than a year earlier. But
while farmers and ranchers received
lower prices for their products, the
prices they paid advanced slightly
to a level 15 percent higher than a
year before.
The drop in farm prices substantially slowed the growth in cash receipts from farm and ranch market-
TOTAL OIL WELLS DRILLED
~
---------------------·p~e.. c:r9~a;2rr'o",
rc~e::n~t
~
First
Fourth
quarler
1973
Fourth
quarter
Area
First
quarter
1974
FOL~~,~~~aT~~.~~:.~~.~ .~:.~~~.S.::::::
1 ,~~~
1 ,~~~
-"S~%
Offshore ........................................
N Onshore ...... .. ................................
O~w Mexico .... ..................................
T lahoma ........................................
58
127
71
146
1,036
961
Offshore ........................................
UN ?nShore ........................................
I ED STATES................. .................
1
1,037
2,590
0
2,9 6 "
70
~---------------------------------_;::;;-
exas ,." .... ... ..... , .......... ,,,.,',, ...... ,,... .
2~~
2~~
:: ~~:g
_ 5.9
- 19.2
8.0
79
_ 4 :~%
ings in District states. Nevertheless,
crop and livestock receipts in the
first four months of the year totaled
$3.6 billion, compared with $2.7 billion for the same period in 1973.
6.8'1>
J~:~
: ~ci:~
1.1
19,0
92
1 '7'1>
4
-:.:;.....---
~
--~~~~~~~~~~~----~------
SOURCE: American Petroleum Institute
quarter
1973
1973~
