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MONG£HLGJr
BU8INE88
FEDERAL
REVIEW
RES E R V E
Vol. 41, No.6
BANK
o
F
DALLAS
June 1,1956
DALLAS, TEXAS
STRUCTURAL CHANGES IN SOUTHWESTERN RETAIL TRADE
The ultimate result of most business activity is the sale of
goods and services to the customer. The growth or decline
'in retail sales and the efficiency of the distribution of goods
to the final buyer are of the utmost importance in determining the level of operations of all industries. Consequently,
the volume of retail sales is a prime measure of the state of
the economy. Moreover, the basic trends in retail sales provide valuable information in analyzing the relative importance of regions and subregions within the Nation. Retail
sales also reflect the changing pattern of consumer tastes and
the trends in consumer goods marketing. Because of their
importance, it is desirable to study the basic trends and
changes in retail sales whenever accurate statistical data
become available.
At irregular intervals, the Bureau of the Census of the
Department of Commerce makes a complete census of retail
trade establishments in the United States. Such a census
was taken in 1955 to report the level and characteristics of
retail trade in the year 1954. The previous census reports on
retail trade in 1948. The 1954 census results by state and
county or parish have become available in recent months
and provide the basic data from which a picture of the trend
in retail trade since 1948 can he obtained. A comparison of
these two census reports points out some of the major trends
and indicates some of the more important reasons for the
changes. The basic data to be analyzed are total sales, the
number of establishments, the number of employees, and
sales and establishments by types of stores.
Before comparing the essential data in the 1948 and 1954
censuses, it is desirable to consider briefly the economic enMAJOR INDICATORS OF ECONOMIC ACTIVITY,1954 AND 1948
vironment within which each census was undertaken and to
consider the degree to which the level of economic activity
at that time affected the results of the census. In 1948 the
economy was riding the crest of the immediate postwar
boom. Income, employment, sales, and production were substantially above the levels of the previous year.
In contrast, 1954 was a year of mild readjustment, characterized by recession, stability, and recovery . For the year
as a whole, such measures as gross national product and employment declined moderately from the preceding year, while
personal income continued to edge upward. This minor readjustment was the first reaction from the peak levels reached
after the Korean War. The differences in economic condi·
tions in the two census years may have had the effect of
either holding down the size of gains in retail sales or accentuating Lhe size of decreases.
The magnitnde and direction of changes in some of the
major economic indicators between 1948 and 1954 are indicated in the accompanying table. Gross national product,
personal income, employment, and - in fact - all the other
major indicators except farm income showed substantial
increases; farm income was about the same in the 2 years.
Stated in terms of dollars, the measures were affected by substantial increases in prices. Wholesale prices rose from an
average of 104.4 in 1948 to 110.3 in 1954 (1947·49
100),
reflecting an increase of approximately 6 percent; consumer
prices moved up from 102.8 to 114.8 for a gain of about 12
percent. These figures suggest that probably 10 percent or
more of the gain in retail sales might be attributed to the
increase in prices, rather than an increase in the physical
volume of goods.
=
Trends in Total Retail Trade
(Dollar amounts in billions)
Change,
1954 from
Economic indicator
Tofal gross national product .••..•
Total industrial production •.••..••
(Annual enrage index)
Tala I new construction .....•.. • ..
Employm ent • • • •• •• .••• • ••.•• • •
Unemployment •••••••••••••••• •
Total personal income ••••••.••••
Personal consumption expenditures.
Realh:ed gross farm income ••••••
195'
$360.5
125
1953
Change,
1948 from
1948
-$'.0
-9
$257.3
10'
$27.8
$2.0
61,238.000 -975.000
3.230.000 1.628.000
$287.6
$1.4
$236.5
$5.9
$34.0
-$1.2
$17.9
59.378.000
2,064,000
$208.7
$177.6
$34.6
SOURCEI Joint Commlttee on the Economic Report.
1947
$25.1
4
$3.9
1,351,000
-78,000
$18.2
$12.6
S.6
During 1954, total retail sales in the Southwest (which
includes the Eleventh District states of Arizona, Louisiana,
New Mexico, Oklahoma, and Texas) amounted to $15,191,548,000, representing a rise of 39 percent over the five-state
total in 1948. In the Nation, retail sales increased 32 percent
to a 1954 total of $169,672,171,000. The difference in the
rates of expansion follows closely the differential between
the Southwest and the United States in income and population growth. There has been a marked shift of population
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
82
MONTHLY BUSINESS REVIEW
RETAIL SALES, INCOME, AND POPULATION, 1954 AND 1948
Five Southwestern States
RETAIL SALES
{In tholl$onds of doHars}
POPULATION
lin thousands)
1954
982,660 $ 654,944 $ 1,468 $ 839
2,337,791
1,677,012
3,751
2,601
733,093
475,512
1,079
650
2,117,346
1,631,182
3,187
2,360
9,020,658
6,488,175 13,350
9,056
993
2,924
781
2,268
8,468
704
2,591
571
2,295
7,371
SOUTHWEST $15,191 ,548 $10,926,825 $22,835 $15,506
15,434
SOUTHWEST
1948
13,532
Area
A~lzono •• ••• • $
louisiana ..•.•
New MOllica.•
Oklahoma ••• •
Texas . •.. •.• •
1954
RETAIL SALES BY TYPE OF RETAILER
INCO ME
(In millions of
dollars)
1948
1954
1948
- - --
SOURCES: Bureau of the Census and Cfnee of Business Economics, United Stal.s Deport·
ment of Commerce.
from rural to urban areas, with a consequent decline in the
proportion of lower-income rural workers and a gain in
higher· income urban residents. This movement also has oc·
casioned a decline in the proportion of the population which
obtains its food needs from self·sustaining farms. The rural·
lo·urban population movement has been more intense in the
Southwest than in the Nation. Moreover, as per capita income
has risen in the Southwest, the area has become a better
market for all types of consumer goods, In turn, this improved
market has stimulated the establishment of distribution
centers, which also have helped to promote growth,
Consumer buying in the five southwestern states, individ·
ually and collectively, and in the United States follows a
very similar pattern. Three types of retail outlets - food,
automotive, and general merchandise - accounted for more
than 50 percent of total retail sales in both the Southwest
and the United States in 1954, with the largest proportion
of total sales uniformly accounted for by retail food estab·
lishments. Sales at automotive establishments ranked a close
second, while general merchandise sales were a poor third.
Among the major types of retail establishments, the most
notable sales gains between 1948 and 1954 were made by
gasoline service stations, automotive establishments, and food
establishments, in that order,
However, before discussing the growth in sales at the var·
ious types of retail establishments, it should be emphasized
that the census surveys tabulate sales according to the nature
of an outlet, not its product. Thus, general merchandise sales
include sales of appliances, furniture, and apparel, even
though there are separate groups of stores whose primary
business is selling such products. Consequently, it is possible
for the total sales of an individual product to rise sharply
while the sales at that type of outlet may rise only slightly.
In addition to the rural-to·urban population movement and
sharp increases in both population and personal income, many
other factors bave contributed to the strong increase in sales
at retail food outlets. While the proportion of consumer
income spent for strictly food items has remained virtually
unchanged, there has been a major shift in the type of retail
unit, reflecting changes in the kind of merchandise sold and
the size of a store. In the past 6 years, retail food stores have
greatly expanded their range of merchandise, with many
now carrying household appliances and housewares, hard·
ware, garden tools, toilet articles, drugs, and some dry
goods. Most of the larger units have added frozen food
and luxury food departments. These changes partly account
for the better than average gain of 45 percent in sales of retail
food stores and also provide a partial answer to the cause of
the relatively poor showing of sales at appliance, drug, and
hardware stores.
However, there has been an additional shift in the type
of merchandising at food establishments. This shift has been
toward packaged, higher.priced food and away from the
bulk sales of even a few years ago, It is not uncommon for
today's housewife to buy frozen, canned, or packaged foods
consisting of one or more products, and the only effort reo
quired for preparation is heating and serving. These pack.
aged foods generally are more expensive than the bulk foods
and thus contribute to the rising dollar volume of retail
food sales. There has also been a shift to the consmnption
of the more expensive fresh foods and to prepared foods
for the growing infant population.
Finally, with the development of supermarkets and con·
centrating suburban populations, the movement toward a
larger·sized establishment has accentuated the trends toward
greater merchandise coverage in a single establishment and
higher sales per establishment.
Sales in the automotive group - which includes dealers
selling new and used automobiles, aircraft, motorboats,
motorcycles, and automobile trailers - moved up 55 percent
RETAIL SALES AT FOOD OUTlETS, 1954 AND 1948
Five Southwestern Slates and United States
(Amounh In thousands of dolton)
Arizona.. ....... ...... .. ...
Percentage
1954
Area
$
230,110
1948
$
141,030
Increase
louisiana . •••....•..• • , .••.•
New Mexico ..••• • • ...• • •..••
Oklahoma • .•. • .• • . •••••• • ••
Texas .. ...... .•. •••.•••.•.•
159,932
483,61 1
2,037,541
363,247
97,740
347,574
1,405,169
63
36
64
39
45
SOUTHWEST..............
UNITED STATES.... .... ....
S 3,405,384
$39.636,282
$ 2,354,760
$29,265,671
45
35
494,190
SOURCE: United Stotes Bureau of tho Census.
MONTHLY BUSINESS REVIEW
RETAIL SALES AT AUTOMOTIVE ESTABLISHMENTS, 1954 AND 1948
Five Southwestern Stotes and United Siales
(Amounts in thousands of dollars)
Percentage
1954
Area
$
Texas ..................... .
168,416
440,457
145,345
451,867
1,918,096
SOUTHWEST. .... . ....... .
UNITED STATES . •.• . ..•.•.•
$ 3,124,181
$29,810,125
Arizona .•................. .
louisiana •.......••........ .
New Mexico ..••.............
Oklahoma •••.••...•... . ... •
1948
$
increase
100,322
276,834
83,531
336,370
1,219,934
68
59
74
34
57
$ 2,016,991
$20,101,789
55
48
SOURCEI United Siaies Bureau of the Census,
between 1948 and 1954. In this instance, the product and
the type of outlet are nearly identical, since automotive establishments sell very little except the one product and services
for that product. Accounting for nearly 21 percent of total
retail sales in the Southwest and 18 percent in the Nation,
automotive sales were sparked by the sharp increase in the
number of new automobiles sold, which expanded in the
Nation from nearly 3,900,000 in 1948 to about 5,500,000
in 1954. The lIsed car business has grown at an even greater
rate.
The growth in suburban living has brought about pressure Ior a second automobile in many households. The wife,
in a home perhaps miles from the nearest store, wants the
family car to be available at home. Her husband, faced with
an hour's bus ride to and from town, is equally forceful in
his demand for the car. The result often is an additional automobile for the suburban family.
In addition to the actual increase in the number of automobiles sold, some important trends in retailing and consumer
buying of new automobiles have had a marked effect upon
retail sales in the automotive field. First, there has been a
trend toward the purchase of a larger proportion of luxury
automobiles, with a consequent increase in the average price.
Second, prices of automotive products generally have moved
up faster than prices in other fields. Third, buyers have tended
to increase the number of accessories placed on their new
automobiles, causing a further increase in dollar outlay.
Fourth, there has been a tTend toward greater reliance upon
dealers for repairs. These changes in consumer taste have
been reinforced by the change toward mass marketing of automobiles through larger outlets.
Also affecting the totallevcl of retail sales in the automotive
category has been the greater interest in private aircraft
and motorboats. In recent years, there has been a marked
expansion in the number of private aircraft, and sales of
nearly all types of boats have increased substantially with
the greater leisure time of most Americans.
83
but the primary sales remain those most closely associated
with this type of outlet - sales of automobile gasoline. Of
course, many of the larger service stations now have restaurant and garage facilities, and even the smallest stations
handle minor food items and soft drinks, cigarettes, and
automobile accessories.
The major reasons for the increase in retail trade at gasoline service stations probably are the larger number of cars
on the road and the more intensive use of cars. Part of this
last development has resulted from the increased suburban
movement of the population and the greater substitution of
the private car for city transportation. The suburban housewife - with a multiplicity of circle and clnb meetings to
attend and visits to make and with grocery shopping, transportation for the children, and occasional shopping sprees call easily use a tank of gasoline a week. Her husband uses an
equal amount going to and from work, to say nothing of
week-end excursions. In fact, week-end and annual vacation
travel by automobile has been accelerating.
Changes in the automobiles themselves also have contributed
to higher sales at gasoline service stations. Higher octane
ratings in gasoline in response to the higher horsepower
ratings of automobiles have boosted the consumption and cost
of gasoline. This higher horsepower, as well as more complicated accessories, has increased further the cost of repairs,
which account for a sizable share of the business in most
service stations.
The 18-percent increase in sales at general merchandise
stores from 1948 to 1954 was considerably less than the 39percent increase in total retail sales in the Southwest, probably because of the development of suburban shopping centers
in tbe larger cities and the increase in the use of specialty
stores. Moreover, the importance of the general merchandise
store has declined in the rural areas - the stronghold of the
general store - because of the tendency toward city shopping.
Nevertheless, retail sales at general merchandise outlets have
accounted for a large share of appliance, furniture, and
apparel sales.
Of the remaining categories in retail trade, sales at all outlets except the nonstore retailers and the "other" retail stores
showed smaller gains between the census years than the
average increase in total sales for the Southwest. As these
stores account for a lower percentage of total sales, the
changes are less significant and the causes of the changes
are more obscure.
RETAIL SALES AT GASOLINE SERVICE STATIONS, 1954 and 1948
Fiv e Southwestern States and United Stales
IAmounts in thou sands of dollars)
Percentage
Primarily connected with the change in antomobile sales
have been the increased retail sales at gasoline service stations. From 1948 to 1954, retail service stations in the Southwest increased sales 85 percent - the largest increase for
any of the major categories of retail trade. Sales have been
stimulated by the tendency toward larger establishments with
corollary service areas and the addition of other merchandise,
1954
1948
Oklahoma ..•...••••.. .. •.. .
Texes . . ............... • ... .
89,485
161,923
67,632
160,388
644,149
40,671
79,487
35,682
100,125
349,809
120
104
90
60
84
SOUTHWEST..............
$ 1,123,577
UNITED STATES • . •••.. • .•••
510,780.052
605,774
$6,483,205
85
66
Area
Arizona. .•. . ...............
Louisiana . .•................
New Mexico ••••...•.........
$
SOURCEl United States Bureau of the Census.
increase
MONTHLY BUSINESS REVIEW
84
,2,117,346
The general growth in sales from 1948 to 1954 was accomplished with only an 8·percent increase in the number of
employees in the Southwest and a 4-percent increase in the
Nation. As a result, sales per employee moved up sharply,
with the southwest average reaching $23,518 in 1954. The
southwest average, although closer than in 1948, was still
slightly lower than the United States average of 823,826 in
sales per employee.
.2.331.19'
State Trends
GROWTH IN RETAIL SALES
•
733.093
$
9.2.660
*
9,020,658
SOf,lItCf :U,I. IYf_ of Ihi CI/I_
The slower gain in sales at retail lumber, building materials,
and farm implement outlets reflects, in part, the practice of
contractors of housing developments to buy direct from mills
or wholesalers, rather than through retail outlets. In the
case of farm equipment, the generally less favorable position
of farmers - arising from a virtually unchanged level of
income, rising costs, and (in many parts of the Southwest)
the long period of drought - has curtailed the need for
equipment and the financial ability to purchase it.
The relatively slower growth in sales at retail furniture
and appliance stores reflects partly the initial placement of
many maj or appliances in newly built homes and partly the
extensive sales of such items as television sets and room air
conditioners at other types of retail outlets. Thus, wrule
nearly all families own radios and millions have purchased
television sets, home air conditioners, and a host of small
appliances, sales of these items have been spread among food,
general merchandise, drug, and other retail outlets, as well
as retail furniture and appliance stores.
Within the soutl"vest total, retail sales in 1954 were dis·
tributed among the five southwestern states in the following
order: Texas, Louisiana, Oklahoma, Arizona, and New Mex.
ico. The three states of Texas, Oklahoma, and Louisiana gen·
erally accounted for over 85 percent of total retail trade in
this area. However, between 1948 and 1954, Arizona and
New Mexico became more important, while Oklahoma de·
c1ined in importance. Louisiana and Texas retained their
relative positions.
Jn general, the increases in retail sales, wruch show that
Arizona and New Mexico are well above the southwest avo
erage and Oklaboma is below, follow the trends in popula.
tion and income. Arizona and New Mexico have shown the
larger relative increases in population and income among the
five southwestern states. In cash receipts from farm marketings between 1948 and 1954, the Southwest showed no net
cbange, but the Oklahoma total declined 19 percent. Arizona
and Louisiana showed increases, while Texas and New Mexico
reflected small declines.
However, per capita retail sales increases did not show
the same relationship to growth in population and income as
the increases in total sales. Arizona and New Mexico, with
increases of $59 and $106, respectively, in per capita sales
between 1948 and 1954, were far below the southwest increase
of 8177 and the Oklahoma gain of $223. Thus, wrule growth
in population apparently leads to increasing dollar volumes
of retail sales, it may not mean proportionate increases in per
capita sales. While there are many possible explanations for
Nonstore retail sales showed the largest percentage gain of
any category in the 6·year period. The 116·percent gain in this
type of sale was accounted for largely by the increase in the
number of door·to·door salesmen, the larger use of mail·order
establishments, and especially the rapid growth in the use
of vending machines. Again, the products for sale are of a
wide variety, thus reducing the amount sold in the individual
specialty store. However, nonstore retail sales constituted less
than 2 percent of the total retail sales in the Southwest in
1954.
Because of these comparative rates of growth among the
ma jor types of retailers, the automotive, gasoline service
station, and food establishments generally assume a higher
proportion of retail sales than they did in 1948. In contrast, general merchandise, lumber, and furniture establish·
ments account for a smaller proportion of total sales.
RETAIL SALES BY STATE
SOOtllC[ :o.S · 8 •• av.'
I~'
c ......
MONTHLY BUSINESS REVIEW
85
of retail trade. In New Mexico, sales at general merchandise
stores showed a sharp increase of 50 percent, compared with
the southwest average increase of only 18 percent. This
difference is explainable largely by the increase in the number of such establishments in New Mexico, compared with
a relatively small increase - or actual decline - in the other
southwestern states.
SALES PER ESTABLISHMENT
this disparity, it is not feasible to isolate one central cause.
The age, occupation, marital status, number of dependents,
and a large group of other characteristics of the migrating
population have an important bearing upon buying habits.
The second major deviation was the decline in lumber,
building materials, and farm equipment sales in Oklahoma,
as contrasted with an average increase of 10 percent in the
Southwest. This decline is also noticeable in the ll-percent
decrease in the nnmber of establishments in this category
in Oklahoma, compared with a I-percent increase in the
Southwest. Three of the major reasons appear to be the outmigration of the farm population, the shift in population from
rural to urban areas, and the movement from crops to livestock farming. Each of these occasioned lessened demand for
farm equipment. Moreover, several additional reasons for
this decline in Oklahoma include the sharp reduction in farm
income, which discouraged replacement demand; and acreage cutbacks under the Government support program, enabling farmers to operate with fewer pieces of farm equipment.
Local Unit Trends
Sales per establishment in the Southwest during 1954 averaged $93,876, or somewhat below the $98,594 average of the
United States. Only two states - Texas and Arizona - reflected sales per establishment which were above the United
States average, while Oklahoma showed the lowest sales per
establishment. Thcse differences can be explained largely
by the existence of large concentrations of population in
Texas and the concentrating population in Arizona.
Four metropolitan areas in the Eleventh District have
populations of over 500,000 - Dallas, Fort Worth, Houston,
and San Antonio. These four areas accounted for 38 percent
of total retail sales in Texas during 1954 but only 29 percent
of the State's retail establishments. This concentration of
sales reflects the greater population growth and more rapid
income increases of the urban areas compared with the rural
areas. The greater sales increase in the four metropolitan
areas also reflects the trend toward more large-city buying
on the part of nearby rural residents; density of population
and the creation of snburban shopping centers, which makes
the stores more accessible; and the location of large mailorder houses in two of these areas.
Among the five southwestern states, there were two major
deviations from the percentage changes in the various types
In general, consumer spending in these large metropolitan
areas in 1954 was distributed in approximately the same fash-
The actual per capita sales level in 1954 reflects a southwest
average of $984, compared with the national average of
$1,053. Within the southwest total, Texas shows the highest
per capita sales, $1,065, and Louisiana the lowest level, 5799.
DISTRIBUTION OF RETAIL SALES, 1954
Four Metropolitan Areas
(Amounts in thousands of dollars)
HOUSTON
Kind-of· business group
Sales
SAN ANTONIO
DALLAS
Percentage
of total
Percentage
Percentage
Sales
FORT WORTH
Percentage
of total
Sales
of total
Soles
of totol
22.8
7.2
13.8
8.8
3.9
18.2
6.4
$107,234
32,008
98,867
26,053
19,685
119,127
32,481
19.1
5.7
17.6
4.7
3.5
21.3
5.8
291,368
75,455
159,676
77,748
60,988
231,049
78,247
24.0
6.2
13.2
6.4
5.0
19.1
6.5
$ 214,762
66,760
138,700
74,840
40,255
247,828
59,309
19.6
6.1
12.7
6.8
3.7
22.6
5.4
$126,973
40,008
77,017
48,832
21,840
101,449
35,441
82,660
38,218
98,7 13
18,743
6.8
3.2
8.1
1.5
65,419
33,571
84,819
68,173
6.0
3.1
7.8
6.2
31,809
15.878
48,535
9,359
5.7
2.8
8.7
1.7
35,193
21,549
38,025
30,122
6.3
3.8
6.8
5.4
TOTAl. .• ••. ••.• • ..•.• •••.•••. •.. ••••••• $1,212,865
100.0
$1,094,436
100.0
$557,141
100.0
$560,344
100.0
Food stores .. .............................. $
Eating, drinking places ... .............•. .... .
Genera l merchandise group . ..•..............
Apparel, accessories stores . . .... ..... . ..... ..
Furniture, homefurnishings, a ppliance dealers •.•. .
Automotive group •••... .... ...•.••.• . .. . ... .
Gasoline service stations . . .. ... ..... .........
lumber, building materials, hardware, form
equipment dealers . ......•.• ..• •.••••... . .
Drugstores, proprietary stores . ...... .... • ....•
Other retail stores . ....................•....
Nonstore retailers ...• .... . ..........•.••..•.
SOURCE: United Stotes Bureau of the Censu s.
86
MONTHLY BUSINESS REVIEW
PERCENTAGE CHANGES IN RETAIL SALES,1948-1954
I-.'.;);::-;;;:":j
...... _- ... -
COUNTIES SHOWING LOSSES,ORGAINS
Of LESS THAN 10 I>£RCENT.
r===l
GAINS Of AT LEAST 10 PERCENT BUT
liliiii
ELEVENTH FEDERAL RESERVE DISTRICT
GAl NS OF "'0 PERtENT AND A80VE .
~ LESS THAN 40 PERCENT.
SOUIIODUS ...... ofl .. c: ......
ion as in the State or the Nation. However, there are a few
differences, such as the fact that retail lumber sales, which
include sales of building materials and farm equipment, were
less important in the metropolitan areas than in the State
as a whole. Nevertheless, most of these differences were are·
sult of heavier concentrations in other types of sales, such
as nonstore retailers and general merchandise stores.
Houston showed greater strength in sales at food and fur·
niture outlets than Texas, while in Dallas, sales at automotive
stores were above the state average. In San Antonio, sales of
apparel establishments were relatively stronger, and in Fort
Worth, general merchandise establishments accounted for a
higher proportion of retail sales than in the State. Higher
sales at food outlets in Houston probably stem from the large
fishing industry and nearby concentrations of population.
The strength in sales at automotive stores in Dallas results
from the existence of a large number of used car and new car
dealers servicing a wide area and from the keen competition
among these dealers.
Between 1948 and 1954, the increase in retail sales in
Dallas, Houston, and San Antonio exceeded the rate of in·
RETA il SAlES,1954 AND 1948
Four Metropolitan Areas
(Amounts In thousands of dollars)
Area
1954
19~8
Houston ••••••••••••••••••• •
$1,212,865
$818,603
OoHas • ••.••• • .••••• ••• •. • ••
1,094,436
Son Antonio •. •. •.•.•.••...••
Fort Worth .......•.•.•••.•••
557.141
560,344
704,804
392.717
SO URCE, United S'oles Bureau of the Census.
402,391
crease in the State; the gain in Fort Worth was equal to the
state·wide improvement. Among the various types of retail
trade in the four areas, the strongest sales increases were
at food and automotive establishments and gasoline service
stations - the same general areas of strength in the State.
However, there were exceptions among the four cities, as
Houston showed greater strength in general merchandise
sales; San Antonio, in "other" retail sales; and Fort Worth,
in retail drug and proprietary store sales. The smallest gains
in the 6-ycar period were in sales at furniture and lumber
establishments.
The accompanying map of the Eleventh District illustrates
the areas of greatest strength and weakness in retail sales
between 1948 and 1954. Since there was at least a 10·percent
increase in prices, all counties or parishes showing a decrease,
or a gain of less than 10 percent were combined into a group
showing no increase in actual goods sold. The second group
reflects percentage increases of at least 10 percent but less
than the southwest average of 39 percent. The third group
reAects increases in retail sales over the southwest average.
In the first group are mainly counties in which agricul·
tural income was reduced by drought or crop failure or areas
in which extensive farm consolidation occurred, with sub·
sequent declines in population. The eastern Texas Panhandle
illustrates the lack of growth in farm income, while the
Oklahoma area reflects a loss in rural population.
Percentage
increase
48
55
42
39
The areas showing above·average gains are generally those
where oil and gas discoveries offset declining farm income;
irrigation strengthened farm income; or industrialization
or other factors , such as new defense installations, occasioned
87
MONTHLY BUSINESS REVIEW
rapid increases in population and income. The west section
of the Texas Panhandle and northeastern New Mexico reflect
oil gains, while central New Mexico shows the effect of rising
population from defense installations. The Gul£ Coast and
north·central Texas counties illustrate a gain associated with
industrialization. It is not feasible to explain the many factors
influencing the rate of gain in each county or parish; however,
the major considerations appear to be linked with farm income, population movements, oil and gas discoveries, and
industrialization.
Recent Developments
In general, the most prominent trends between the two
census years were accentuated in 1955 and early 1956, as
economic activity rose to newall-time peaks. In this upsurge,
retail sales provided one of the strongest stimulants to production. It is estimated that retail sales in the Nation during
1955 were about 7 percent higher than in 1954 and, on a
seasonally adjusted basis, held close to the high reached late
in 1955 during the first 4 months of 1956. The performance
in the Southwest during the past year was even better, with
total sales for 1955 estimated at $16,500,000,000, or 9 percent
more than in 1954. The relatively more rapid sales growth in
New Mexico and Arizona continued unabated, while the increase in Oklahoma was very moderate. The gains in Texas
and Louisiana centered around the southwest average. Among
the individual lines, sales at automobile concerns and gaso·
line service stations experienced sharp increases and accounted for a larger share of total retail sales.
Conclusion
In the foregoing discussion, some of the more important
characteristics of retail trade in the two census years and
the maj or trends during the intervening period have been
highlighted. The analyses have centered around the relative
economic growth of the Southwest and the Nation, population
growth and the shift in population within the region and
between this region and other parts of the Nation, and the
trend toward industrialization in the Southwest. These factors have tended to accentuate the normal trends resulting
from a dynamic and rapidly growing economy. Many of
these trends point the way toward probable developments in
the years ahead.
The census reports which have been or will be published
contain a wealth of data pertaining to retail trade at the
local, state, and national levels. They provide the basic data
which may be used by the retailer, wholesaler, and manufacturer for analyzing competitive positions, markets, and
maj or shifts in consumer habits and preferences, as well
as for numerous other purposes. In preparing for the future
in a dynamic economy, a careful study of census materials
should be most helpful to businessmen in measuring the
efficiency of their operations and in charting their course.
88
MONTHLY BUSINESS REVIEW
REVIEW OF BUSINESS, AGRICULTURAL, AND FINANCIAL CONDITIONS
District department store
sales in April, adjusted for seasonal variations, were only
slightly below the March level.
Inventories at department
stores at the end of April were higher than a year
earlier, while orders outstanding were down slightly.
Furniture store sales in April decreased 4 percent from
a year earlier but were 3 percent above the previous
month.
Department store sales in the
Eleventh Federal Reserve District
during April showed a negligible decline from March, after seasonal
adjustments. The adjusted index remained at 144, even though the dollar volume of sales declined 9 percent from March and was 8 percent lower than
in April 1955. This unfavorable showing with respect to both
a month ago and a year ago was accounted for mainly by
an earlier Easter date, one less business day than in April
1955, and the fact that Mother's Day was a week later this
year. Cumulative sales fo r 1956 through April showed a yearto-year rise of 3 percent, compared with 8 percent at the
end of March. Total sales for the first 2 weeks of May rose
9 percent above the year-earlier level.
Rains during the early part of May improved agricultural prospects in the eastern two-thirds of the
District, but additional rain is needed to maintain
development of crops and pastures. In western areas,
little or no precipitation was received, and moisture is
Sales in the various soft goods departments during April
urgently needed. Winter wheat prospects declined reflected the post-Easter slump and the later date of Mother's
further. Cash receipts from farm marketings during Day with substantial decreases from a year earlier_ Sales of
the first 2 months of 1956 are placed at 9 percent Ivomen's and misses' ready-to-wear accessories were 16 percent
below the April 1955 level, sales of men's and boys' wear were
below the January-February total in 1955.
18 percent less, and sales of women's and misses' ready-to-wear
apparel were 7 percent lower. On the other hand, sales of
piece goods and household textiles were up 4 percent from
a year earlier.
Unseasonably cold weather stimulated refinery
activity in early May; but in view of rising crude oil
stocks and the anticipated decline in crude oil demand, oil production has been cut back. Further
Sales of consumer durable goods, which had experienced
declines are expected in June as a result of reduced moderate to substantial increases for more than a year, de·
oil allowables.
creased during April for the second consecutive month. Sales
of rna j or household appliances were down 9 percent from last
Nonagricultural employment in the District states year, as were sales of furniture and bedding, and sales of
in April, at 4,038,200, was up 15,400 from March. domestic floor coverings were down 4 percent. These decreases
The less than seasonal increase reflected the early were partially offset by a 13-percent increase in sales of
end of the Easter buying season and also labor- housewares.
management disputes, which caused work stoppages
RETAil TRADE STATISTICS
in construction and manufacturing industries. Manu(Percentage change}
facturing employment was almost unchanged at
750,500.
NET SALES
STOCKS'
The value of construction contracts awarded in the
District during April declined 1 percent from the previous month but was 17 percent above the yearearlier level. Residential awards turned upward with
a 26-percent gain over March, but "aI/ other" awards
decreased 17 percent.
District weekly reporting member banks reduced
investment holdings and drew down their cash accounts in meeting deposit losses and accommodating
loan demand during the 4 weeks ended May 16.
Deposits decreased $87,981,000, while gross loans
increased $35,104,000. Average member bank reserve balances declined in April, although the free
reserves position of country banks showed a slight
improvement.
April 19S6 from
Line of trad.,
by area
DEPARTMENT STORES
Total Ele'tenth District ••••••••••••
Corpus Christi •••••••••••••••••••
Dallas ••• ••••••• •• •••• • • •••••• •
EI Paso ••••••••••••••••••••••••
Fort Worth • • •• •••••• •••••••••••
Houston •••••• •• •••••••••• •••••
San Anlonlo ••• • • ••••• ••• ••• •• ••
Shreveport, La ••• ••• ••• ••••• ••••
WaeQ •••••••••••••••••••••••••
Other cities ••• • ••••••• ••• ••• •••
FURNITURE STORES
Total Eleventh District •••••••••• • •
Amarillo ••••••••. •• •••••••••• ••
Austin ••••••••••••••••••••••• , ,
Dollos,., ••• ,., •• , ••••• ,."., ••
Houston •••••••••••• • ••••••••••
lubbock •••••••••••••••••••••••
San Antonio •••• •••• ••••••••••••
Shre.... el'ort. lo ••••••••• " •••••••
Wichita Falls •••••••••••••••••••
Other cities •••••• • •••• •••••••••
HOUSEHOLD APPLIANCE STORES
Total Eleventh District •••••• •• •• ••
Dallas •••••••••••••••••• • ••• •••
1 Stocks at end of month.
.. mo. 1956
April 1956 from
tm
March
1956
.. mo. 1955
1955
-8
-12
-9
-9
-11
-4
-15
-7
-8
-5
-9
-12
-9
-12
-6
-6
-22
-2
-7
-3
3
3
1
2
4
5
-2
4
7
6
8
8
5
3
18
12
-3
9
13
16
-1
0
-4
2
-2
-5
_4
0
-2
_4
25
-3
- 28
11
_5
-17
7
45
6
3
45
-6
-5
19
-11
-12
4
5
6
-3
-20
9
-9
12
3
10
19
-13
1
24
7
9
2
-1
5
-2
1
3
-3
8
14
-4
2
-10
-4
-2
-7
compo with
April
March
1956
-I
MONTHLY BUSINESS REVIEW
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
(1947·49
=
100)
UNADJUSTED
Area
April Mar. feb.
19S6 19S6 19S6
SALES-Daily average
Elnenth District • ••• ••• • • ••• 132
134
Dallas •• • •••••• •••••• ••••• 122
123r
Houlton •••••••••••••••••• 147 144
STOCKS-End of month
Eleventh District •• •••••••••• 160p 162
ADJUSTEDl
tm tm
Mar. Feb. April
19S6 19S6 1955
III
114
120
139r
129
148
144
137
160
IS3
147r
IS2p IS6
144
130r
ISS
139
134
IS6
14Sr
140
IS7
IS8
UOr
Adlusted for seasonal variation.
r-Revlsed.
1
p-Prellmlnclry.
Instalment accounts outstanding at District department
stores were practically unchanged during April but at the
month end were 12 percent above a year earlier. Collections
during the month amounted to 13 percent of the first-of-month
balances outstanding, the same collection ratio as in April
last year and 2 points lower than at the end of March.
Charge accounts outstanding decreased 2 percent during
April, when some decrease is usual because of the Easter
date_ Balances outstanding at the end of the month were
3 percent above a year ago. Charge account collections duro
ing the month amounted to 42 percent of first·of-month balances, the lowest of record and 6 points below the March
collection ratio.
Department store sales of all types decreased sharply from
March to April and were down substantially from a year
ago. Cash sales were down 14 percent from April last year,
while charge account sales and instalment sales were down 11
percent and 7 percent, respectively.
Inventories at District department stores decreased 1 per·
cent from March to April but at the end of April were 8 per·
cent greater than a year earlier. The adjusted index of department store stocks, which makes allowances for the usual
seasonal variations, decreased from 156 percent of the 1947-49
average in March to 152 percent in April. Orders outstanding,
following the usual pattern, reached the low point of the year
at the end of April and were down 24 percent from the end
of March.
April sales of reporting furniture stores in the District
showed a year-to-year decrease of approximately 4 percent but
were 3 percent above the previous month's total. April was
the first month since June 1954 in which sales were below
the level of a year earlier. Accounts receivable (which have
been showing the usual seasonal declines since the first of
the year) on April 30 were slightly below those at the end of
March but were 8 percent more than a ycar earlier. Inven·
tories registered a month· to· month increase of 2 percent and
at the end of April were 3 percent above April 30, 1955.
89
Light to heavy rains over the major portion of the District during the
last week in April and the first half
of May substantially improved crop
and pasture prospects. In the early
part of May, effective rains were received eastward of a line
extending from the Cap Rock in the High Plains of Texas
through San Angelo, Menard, and San Antonio and southward into the Lower Valley of Texas. At mid.May, light to
heavy rains occurred in the Edwards Plateau of Texas and
extended generally northeastward to the Red River and
southeastward to Corpus Christi. Little or no precipitation
was received during the past month in Arizona, New Mexico,
and the Trans-Pecos and northwestern Panhandle areas of
Texas. Additional rain is needed in most parts of the District
to maintain development of crops.
The improved moisture conditions in the eastern two-thirds
of the District resulted in a sharp increase in farm activity.
Additional acreages of sorghums and cotton were planted,
and some acreages which had been washed by the rains or
had failed to emerge in even stands were replanted. The
variable growing conditions and spotty moisture situation
resulted in a lack of uniformity in the development of crops
within the same areas, as well as in different regions. Cool
weather during May hindered cotton development in the early
areas of Louisiana and Texas. Early cotton is blooming in
the Lower Valley of Texas, and the first plantings of grain
sorghums are nearing maturity. At midmonth, cotton plant.
ing was active from the south Texas dry.land areas northwest·
ward into the irrigated High Plains. Rice planting is complete
in most parts of the District.
Corn has been laid by in the upper coastal counties of
Texas, and the crop is making good development in the
Blacklands and northern parts of the State. Oats and oat-hay
mixtures have been cut for feed in central and eastern counties of Texas and in northern Louisiana. Combining of small
grains is under way in some fields of central and northern
Texas; yields are low. Irrigated wheat in the High Plains
is in fair to good condition, but strong winds and high temperatures during May resulted in additional acreage abandonment in northern and western Panhandle counties of
Texas and in eastern New Mexico.
As of May 1, production of 1956-crop winter wheat in
the four major wheat·producing states of the District is indio
cated at 74,543,000 bushels, or 87 percent larger than the
WINTER WHEAT PRODUCTION
Four Soufhwestern Slates and United States
(In thousands of bushels)
Area
Registration of new car sales durin g April in Dallas, Fort
Worth, Houston, and San Antonio was down 24 percent from
a year earlier and 11 percent from March. New car sales
in the four cities for the January.April period were 15 percent
lower than in the comparable period of 1955.
1956
Ind1cated
May 1
Average
1955
1945·S4
r .)l.OI ••••• ••••• •••••••••• , •• • ••••
1.134
770
S4.189
18,450
1,218
1.500
23,784
13.464
77.872
50,246
Total •••••••••••••••••••••••••••
United States ••••••• •••••••••••••
74,S43
681,432
39.966
70S.372
131,328
872,63S
Arh:ona • ••••• • •• •••••• •••••••••••
NeW M.xico ••••• ••• •••• •• ••••••• ••
Oklahoma ••••••• •••••••••••• •••••
SOURCE, United Stotes Oeportment of Agriculture.
598
2.612
MONTHLY BUSINESS REVIEW
90
LIVESTOCK RECEIPTS
CASH RECEIPTS FROM FARM MARKETINGS
(Number)
Five Southwestern States
(In thousands of dollanT
FORT WORTH MARKET
April
Class
1955
52,063
10,146
57,785
Sheep •.•...•... 131,748
Calfl ••• •.••• •. •
Calyes •....... .
Hogs • ••..... .. •
1
Marc:h
1956
April
1956
SAN ANTONIO MARKET
67.378
13,768
55,629
156,860
1956
lAf5~
43,179
9,935
71),37
99,560
36,520
14,630
3,946
126,072
30,604
15,494
2,844
136,305
April
March
1956
20,997
9,586
4,561
125,712
Indudes goels.
January-February
February
1955
1956
Area
Arizona ..•.... . . .. .. ........... $ 16,923
Louisiana. • . . . . . . . . . . . . . . . . . . . . .
17,067
New Mexico... . . . . .... .. . ... .. .
9,600
Oklahoma... .. .......... ...... .
24,479
TexCls.... .. . .. .................
73,636
S 20,454
16,390
9,922
28,934
82,542
Total .. .................. ..... $141,705 $158,242
extremely small 1955 crop but one·fifth below the 10·year
(1945·54) average. The May 1 indicated output is 18 percent
smaller than the month-earlier estimate.
On May 15 the Secretary of Agriculture proclaimed the
national marketing quota for the 1957 wheat crop, subject to
the approval of growers voting in a referendum on July 20,
1956. The national acreage allotment was set at 55,000,000
acres, or the same as for the 1956 crop.
Vegetables are making satisfactory progress in most com·
mercial areas, although rain damaged some fields in irri·
gated areas of south Texas. Cantaloupes, watermelons, and
tomatoes are moving in volume from the Lower Rio Grande
Valley. East and northeast Texas tomatoes are making good
development, and onions and potatoes in most north Texas
and Panhandle counties are making satisfactory growth.
Pastures and ranges in the eastern two·thirds of the District responded to the May rains, but additional moisture
is needed to maintain development of grasses. In the western
parts of Texas and in Arizona and New Mexico, range mois·
ture conditions remain poor, and rains are needed to stimu·
late forage growth. As of May], ranges in Texas and Okla·
homa were in poorer condition than at the same time a year
earlier, while ranges in Arizona and New Mexico were some·
what better. Livestock remain in fair to good condition;
supplemental feeding continues in areas missed by the recent
rains.
.
Cattle and calf receipts at the principal terminal markets in
Texas during April totaled 113,359, or 11 percent below the
year-earlier level. Hog receipts of 61,731 were 6 percent
higher, while sheep and lamb supplies (including goats)
totaled 157,820, which is 18 percent below those in April
1955.
conON ACREAGE, PRODUCTION, AND VALUE OF PRODUCTION
1956
$
1955
20,887
59,497
248,236
$ 79,458
45,844
21,619
66,362
266,080
$436,094
$479,363
57,754
49,720
SOURCE: United States Department of Agriculture.
According to the Department of Agriculture, the value of
cotton lint and seed in the United States in 1955 is esti·
mated at $2,651,371,000, or about the same as the 1954 value,
although the cotton acreage harvested was 12 percent smaller.
In the District states, the value of cotton lint and seed ill
1955 is placed at 51,052,805,000, which is 8 percent less than
a year earlier; the acreage harvested was 11 percent smaller.
The value of the Texas cotton crop is estimated at $688,·
821,000, or 7 percent below that in 1954.
The index of prices received by Texas farmers and ranchers
increased 1 percent during the month ended April 15, 1956.
The index is placed at 250 percent of the 1910·14 average,
compared with 267 percent at the same time last year. Slight
gains from mid·March levels were reported for most crops
and most meat animals, especially hogs. Prices of poultry,
eggs, and wholesale milk declined.
Cash receipts from farm marketings in the District states
during the first 2 months of this year are placed at $436,·
094,000, which is 9 percent below the J anuary·February
total in 1955. Receipts from crops were 14 percent below the
year·earlier level and accounted for the major part of the
decline; livestock receipts were 2 percent lower.
FARM COMMODITY PRICES
Top Prices Paid in Local Southwest Markets
Commodity and market
COnON, Middling 15 / 16·lnch, OoHos ... .
WHEAT, No. 1 hard. Fort Warth .........
OATS, No.2 white, Fort Worth ....... . ..
CORN, No.2 yellow. Fort Worth . ... .. ...
SORGHUMS, No.2 yellow, Fort Worth .. ..
HOGS, Choic e, Fo rt Worth ...... .. .. . . ..
SLAUGHTER STEERS, Choice, Fort Worth .•.
SLAUGHTER CALVES. Choice, Fort Worth ..
STOCKER STEERS, Choice, Fort Worth • .. ..
SLAUGHTER SPRING LAMBS, Choice,
For' Worth ............... • . . . •.•.. .
BROILERS, south TexoI .•.•. .. .. . ........
Week ended
Unit May 22,1956
lb.
b,.
b,.
b,.
cwt.
cwt.
cwt.
cwt.
cwt.
cwt.
lb.
$
.3545
2.53Y2
.91*
1.85
' 2.46
17.00
CompClrable Comparable
week,
week,
pre'Yioes
previous
month
year
$
.3555
2.64!4
.90!4
1.87IA
2..42
$
.3350
2.78
.98*
1.84*
3.02
18.50
24.00
19.00
15.75
21.00
22.00
19.00
23.00
.23
21.50
.22
22.50
.30
21.00
22.00
22.00
22.00
Five Southwestern States and United Stat e s
(In thousands)
Acreage harvested Boles produce d l
1955
1954
1955
355
615
185
790
6.900
420
688
204
930
7,730
728
582
266
463
4,039
Total ••••.. • . ... . . 8,845
United States .... . . 16,928
9,972
19,251
6,078
Area
Arizona ..•• •. ... .. •
LouisIana ..•..... . ..
New Melllco .•..•...
Oklahoma ...... ... •
Texas ............. .
14,721
1 500 pounds gro" weight.
SOURCE! United States Department of Agriculture.
1954
911
572
316
293
Value of lint and seed
1955
1954
$ 133,494
$ 178.337
110,939
63,975
52,750
105,165
49,663
3,940
75,662
688.821
6,032
13.696
$1,052,805
$2,651,371
740,290
$1.146,291
$2,645,387
In the 4 weeks ended May 16,
weekly reporting member banks in
the District increased borrowings,
reduced investment holdings, and
drew down their cash accounts in
meeting deposit losses and accommodating loan demand. The
decline in deposits amounted to $87,98] ,000, representing an
$83,121,000 decrease in demand deposits and a $4,860,000
decline in time deposits. The reduction in demand deposits of
91
MONTHLY BUSINESS REVIEW
CONDITION STATISTICS OF WEEKLY REPORTING
MEMBER BANKS IN LEADING CITIES
CONDITION STATISTICS OF ALL MEMBER BANKS
Eleventh Federal Reserve Distrid
El eve nth Federal Reserve District
lin mililani of dollars)
(In thousands of dollars)
"em
May 16,
1956
May 18,
1955
April 18,
1956
ASSETS
Commercial,industria', and ogricullurolloo~s ••• $1,539,936 51,439,476 $1,521,062
Commercial and industrial 100ns 1 •••••••••••
1,512,306
1,491,946
Agricultural loans 1• •• ••.•.•••••.•••..•• • •
27,630
29,116
loans to brokers and dectors in socurities •• . •••
21,733
13,753
2 1,649
Other loans for purchasing or carrying securities,
128,543
117,2 27
130,056
Real-estate loons ••• ...••• •••• .•...• • ••••••
209,847
186,370
208,633
loans to banks ••••••••....••••••••••••••• •
13,850
13,530
7,100
All other loans .•••••..••••.• • •••••••• •••••
579,804 .../ 478,453
570,109
Gran loons ••••• • .•• •••••••• ••• •.•••••
len reserves and unallocated charge-offs ••
---
2,493,713
31,243
--- --2,248,809 2,458,609
2,462,470
23,377
--2,225,432
38,775
243,831
809,932
240,176
67,333
41,364
322,237
867,050
249,907
1,369,651
429,081
433,705
1,823
44,317
535,710
133,970
1,547,891
368,102
442,004
1,558
46,948
583,383
117,107
TOTAL ASSETS •••• •••••• • ••••••••••••
5,410,727
5/332,425
--5,485,796
LIABIlITIES AND CAPrT Al
Demand d eposits
Individuals, partnerships, and corporations ••••
United States Government ••••••• ••• •••• • •
Sta tes and political subdivisions •• ••••••••• •
Banks In the United States ••••••••••••••••
Bonks in foreign countries •.•••••••••••••••
CertiAed and ofAcers' checKS, etc: ••••••••••
2,775,569
114,916
197,581
844,924
16,92 3
89,270
2,805,572
151,213
195,904
848,06 1
18,125
72,161
2,804,401
81,731
175,652
962,654
17,475
80,391
Net loans •• _••••••••••••••••••••••••• _.
U. S. Treasury bills • ••• •••••••••••• ••• ••••••
U. S. Treasury certiAcotes of indebtedness ••••••
U. S. Treasury notes ••••.•••••••••••••••••••
U. S. Government bonds (inc. gtd. obligations) •••
Other securities ••. ••••••• •••••••••••••••••
Total investments •• •.•• ••• ••• • ••• • •• • • • • •
Cash items in process of collection ••••••••••••
8alances with banks in the United Stales •••••••
8alances with banks in foreign countries • • ••• • •
Currency and coin •• ••••.••••••••••••••••••
Reserves with Federal Reserve Bank ••••••••••
Other asseh • • • ••••••••. • ••• •••••••• • •••••
Total demand deposits •••••••••••••••••
Time deposits
Individuals, partnerships, and corporations • •••
United States Goyernment •• ••• ••• ••••••••
Postal savings ••••••••••••••••..••••••••
States and political subdivisiOfls • • .•• •• •••••
Bonks in the U. S. and foreign countries ••••••
--36,937
---
--4,039,183 4/091,036
--- --712,559
12,229
452
135,632
805
655,919
13,662
452
130,276
1,210
Tota l time deposits •••• •• ••••••••••••••
-861,677
--
--801,519
Total deposits •••••••••••• , •• •• , ••••
Bills payable, rediscounts, etc •••••• , •••••••••
All other liabilities .••••••••••••••••••••••••
Total capitol accounts ••••••••••••••••••••••
35,500
56,455
417,912
4,892,555
14,400
48,509
376,961
TOTAL LIABILITIES AND CAPITAl. •••••••
--4,900,860
30,759
--2,427,850
- 43,768
-48,518
232,611
809,582
241,7-45
1,376,22-4
397,871
551,166
1,753
45,450
544,204
141,278
4,122,304
709,294
12,229
452
143,757
805
-866,537
---4,988,84 1
23,500
60,853
412,602
---- - - - - - 5,410,727 5,332,425 5,485,796
I Prior to January 4, 1956, agricultural loans were not reportad separately. Comparable
year-earlier flgurel will b. shown as they become ovailable.
domestic banks was largely responsible for the over· all deposit
loss, although demand deposits of individuals and businesses
also declined, Inclividuals and businesses increased their time
balances at the weekly reporting banks, but this increase was
more than offset by a decline in the time accounts of state
and local governments, ..
In meeting deposit losses during the period, weekly report·
ing member banks increased borrowings by $12,000,000
and reduced balances with domestic correspondent banks by
$117,461,000. Reserves with tbe Federal Reserve bank de·
clined $8,494,000, while cash items in process of collection
increased $31,210,000.
Total investments declined $6,573,000 during the 4·week
period, as weekly reporting member banks reduced their
holdings of Treasury bills and certificates of indebtedness
while adding to their investments in Treasury notes and
United StaLes Government bonds, Holdings of Treasury bills
declined $6,831,000, and investments in Treasury certificates
of indebtedness were reduced $9,743,000. Treasury note
Item
April 25,
1956
April 27,
1955
March 28,
1956
ASSETS
Loans and dlscounlt ••••• ••• ••••••• ••••••••••••
United States Government obligations ••••••••••••
Other securities ••••••••••••••••••••••••••••••
Reserves with Foderal Reserve Bank •••••••••••••
Cosh in vault e •••••••••••••••••••••••••••••••
Balances with banks in the United States ••••••••••
Balances with banks In foreign countrles o •••••••••
Cash items in process of collection •••••••••••••••
Other assets •••••••••••••••••••••••.•••••••••
$3,915
2,298
573
971
119
1,009
2
442
198
$3,486
2,509
552
1,004
136
999
2
370
176
$3,881
2,334
562
932
137
974
2
384
204
TOTAL ASSETSe •••••••••••••••••••• , •••• ••
9.527
9.234
9,410
LIABILITIES AND CAPITAL
Demand deposits of bonk ••••••••••••••••••••••
Other demand deposit••••••••••••••••••••••••
Tim. deposits ................................
1,063
6,252
1,359
1,036
6,248
1,227
1,012
6,259
1,354
Total deposits • ••••• •• •••••••• •••• ••• •••• ••
Borrowing SO • • •• •• • • • • • • • • • • • • • • • • • • • • • • • • • • •
Other liabilities., ••••••••••••••••••••••••••••
Total capital accounts-, •••••••••• • • •••••••••••
8,674
76
70
707
8,511
21
61
641
8,625
3
81
701
TOTAL UABllITIES AND CAPiTAL•••••••••••••
9.527
9,234
.J~
e-Eslimaled.
holdings showed the largest change, a gain of $11,220,000,
while Government bond holdings increased a nominal
$350,000, Other securities declined $1,569,000,
Investment liquidation, along with the reduction in cash
accounts, enabled the weekly reporting banks to expand gross
loans by $35,104,000 during the 4 weeks, With the exception
of loans to finance security transactions, which declined
$1,429,000, all major loan categories registered increases,
Slightly more than half of the loan expansion occurred in the
commercial, industrial, and agricultural loans category, as
these loans rose $18,874,000. Real-estate loans increased
$1,214,,000, while loans to banks increased $6,750,000. All
other loans - principally consumer loans - expanded $9,·
695,000.
At all member banks in the District, daily average gross
demand deposits and time deposits during April rose above
the March levels, reflecting increases at both reserve city
banks an d country banks. The monthly increase in gross
demand deposits amounted to $90,930,000, with more than
three·fourths of the gain occurring at reserve city banks.
The daily average of time deposits, continuing to show a
gradual increase, rose $13,543,000. Approximately two·thirds
of this gain occurred at country banks. Daily average gross
demand deposits of all member banks in April were down
$16,117,000 from the comparable period last year, while
time deposits averaged $136,229,000 above the year·earlier
level.
Member bank reserve balances declined $22,538,000 duro
ing the 4 weeks ended May 16, Interdistrict commercial and
financial transactions provided the principal drain on reserve
funds during the period, as interdistrict payments exceeded
receipts by $72,299,000. A smaller drain of $3,108,000
stemmed from currency transactions, while changes in other
deposits at the Federal Reserve bank absorbed a nominal
$36,000 of reserve funds, Reserves were supplied during the
period by Treasury operations, which contributed $33,714,000 to reserve balances, and by a $15,564,000 increase
MONTHLY BUSINESS REVIEW
92
RESERVE POSITIONS OF MEMBER BANKS
GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
Eleventh Federal Reserve District
Elevenfh Federal Reserve District
(Averages of dally flgures. In thousands of dallers )
(Averages of doily ligures. In thousands of dolla rs)
COMBINED TOTAL
RESERVE CITY BANKS
April
March
1955
1956
$ 554,801
545,862
8,939
20,2 72
-11,333
$ 574,428
558,976
15,452
7,132
8,32 0
5 555,420
544,442
45 1,400
448,321
397,920
385,380
456,742
402,868
53.874
3,133
50,741
COUNTRY BANKS
Item
Gross
Date
demand
Time
GroSl
GrolS
demand
Time
demand
Time
April 1954 •••• $6,802,386 $1,057,137 $3,295,363 $594,744 $3,507,02 3 $462,393
April 1955 •••• 7,388,996
1, 2 19,764 3,626,058 697,441
3,762,938 522,323
Dec. 1955 .. .•
January 1956 .
feb. 1956 ••.•
March 1956 .••
April 1956 ••••
7,541,113
7,592,370
7,257,906
7,281,949
7,372,879
1,309,060
1,320,779
1,333,369
1,342,450
1,355,993
3,656,903
3,668,786
3,464,715
3,528,707
3,603,370
764,200
763,407
767,155
762,057
766,864
3,884, 210
3,923,584
3,793,191
3,753,242
3,769,509
544,860
557,372
566,2 14
580,3 93
589,129
in local Federal Reserve credit. The latter increase featured
both an expansion of float and a rise in member bank bor·
rowings. Changes in other Federal Reserve accounts resulted
in a reserve contribution of $3,627,000.
Reflecting reserve losses during April, the daily average
of member bank reserve balances declined almost $6,000,000
from the March average to a level of $1,006,201,000. Required reserves also declined, but by a smaller amount. Con·
sequently, daily average excess reserves of member banks in
the District decreased to $62,419,000 during April, down
$2,433,000 from the March average, Member banks made
increased use of borrowed funds as reserve positions tight.
ened during the month, and daily average borrowings rose
from $19,601,000 in March to $22,459,000 in April. Re·
fleeting the increase in borrowings and the reduction in excess
reserves, average free reserves (excess reserves minus bor·
rowings from the Federal Reserve bank) declined to $39,·
960,000, or $5,291,000 lower than in the previous month.
The changes which produced a reduction in average free
reserves during April occurred almost exclusively at reserve
city banks. Although average reserve balances of these banks
were smaller in April than in March, required reserves in·
creased, thus inducing a reduction in average excess reo
serve balances. Borrowings also rose during April; conse·
quently, average net borrowed reserves (borrowings minus
excess reserves) of reserve city banks increased from $5,
490,000 in March to $11,333,000 in ApriL At country banks,
on the other hand, the decline in reserve balances was matched
roughly by a decrease in required reserves, resulting in only
a nominal decline in excess reserves. As these banks reduced
average borrowin gs, their average free reserves increased to
$51,293,000, or $552,000 more than in March.
CHANGES IN FACTORS AFFECTING MEMBER BANK RESERVE BAtANCES
Eleventh federal Reserve District
(In thousands of dollan)
CHANGEl
4 wee ks end ed
May 16, 1956
FACTORS
Federal Reserve cre dit- loca l ........... .. . ... . .
'n'erdistrict commercial and flnancial tronlactions .. .
+$15,564
Dec. 28, 1955May 16, 1956
-
72,299
33,714
Currertey transactions .••• • . .. ........• . .. " . .•.
Other deposits at Federal ReserYe Bank ......... .
-
Olher Fed eral Reserve accounts •.•.••.•...•...•.
+
3,108
36
3,627
+ $ 30,093
- 595,234
+ 480, 114
+
60,747
57
+
6,790
-522,538
-$ 17,547
Treasury operations ••••• • •••• • •••••••• ••••.•••
RESERVE BALANCES
AprillS, 195 6 ••..... . ...... . .
May 16, 1956 ........ ........ .
5952,05 1
$929,513
1 Sign of change indicates effect on reserve balances.
+
RESERVE CITY BANKS
Reserve balances ...... . ..... ... . .
Required reserves ............... .
Excess reserves .......... . ...... .
Borrowings .... .. ......... .. . ... .
Free reserves . ............. .. .•..
COUNTRY BANKS
Reserve balances . ............... .
Re quired reserves ..... . ... . ..... .
Excen reserves .... . ............ •
Borrowings . .. ... .......... ... . . .
Free reserves ..... . ... ... •.......
53,480
2,187
61,588
1,006,'201
943,782
62,419
22,459
1,022,749
944,356
39,960
Reserve ba lances .. ..... ..... .... .
Required reserves . .......... .. .. .
fxceu reserves . ... ...... . .. .• ...
Borrowings . .... . . ..... ... . ... .. .
Free reserves . . ... . ... . ......... .
62,94 1
1,353
5 1,293
MEMBER BANKS
10,978
16,468
-5,490
69,908
1,0 12,162
947,310
64,852
19,601
78,393
8,485
~5,251
Total earning assets of the Federal Reserve Bank of Dallas
rose $7,701,000 during the 4 weeks ended May 16, as a $13,·
050,000 increase in member bank discounts more than ofT·
set the decline in holdings of Government securities. Gold
certificate reserves declined $20,218,000 to a total of $701,.
182,000. On May 16, this bank's Federal Reserve notes in
actual circulation amounted to 681,656,000, reflecting a
Sl,361,000 increasc during the 4 weeks and a decline of ap·
proximately $25,000,000 from the year.earlier level.
Bank debits during April decreased in 17 of the 24 report·
ing cen ters in the District, resulting in a 6·percent decline
from March to April for all 24 cities. This decline reflects pri·
BANK DEBITS, END-OF·MONTH DEPOSITS
AND ANNUAL RATE OF TURNOVER OF DEPOSITS
lAm aunts In thousands of dollan)
DEBITS'
DEPOSITS'
Percentage
change from
Annual rate of turnover
April
ARIZONA
Tucson ...• . ... .. . . .•
LOUISIANA
Monroe ••.•.... . . . . .
Shreveport • . .... ....
NEW MEXICO
Roswell .....•.......
TEXAS
Abilene ••.•.. ..... .
Amarillo . ...... .. ...
Austin .... . ... . . .. . .
Beaumont . . ........ .
Corpus Christl . ..... •
Corsicana .•........ .
Dallas .••.......... .
fl Paso • . . ... . ..... .
Fort Worth .... ......
Galveston .. ... ... ..
Houston . ... .........
laredo .... . . ...•.. .
L
ubbock .... . ..... ..
Port Arthur ...... ....
Son Angelo .........
Son Antonio . ... .....
Texarkana' ... .. ... .
Tyl er . . . ...... ... .. .
Waco ..............
Wichita Falls .. ......
April 30,
1956
Area
April March
1955 1956
1956
t~s~
1955 1956
April March
$ 10~,776
20.0
16.9
19.7
57,120
232,694
3 -15
0 -15
48,251
183,006
14.4
15.6
15.4
16.2
26,752
-~
-2
27,102
12.0
11.6
72,28 8
150,596
14
-7
-6
3
0
-11
1
- 5
-9
-1
-12
_8
5
_14
2
-6
-7
- 4
-9
-6
1
56,712
113,400
120,916
108,025
106,83 1
22,032
989,6 18
137,662
13.0
16.7
365,540
68,673
1, 2 19,543
20,042
91,223
45,229
45,0 36
3.48,959
17,560
58,827
66,273
108,045
15.5
16.2
15.1
14.8
18.2
8.4
24.7
20.9
21.5
13.3
20.5
14.5
15.5
15.0
-6
$4,4 73,281
173,740
151,638
133, 508
160,196
15,4 83
2,026,031
235,027
641,254
76, 12 2
2,056,935
24,261
118,486
55,6 52
42,993
458,000
19, 146
71 ,00 8
85,144
99,767
TotClI-24 cities • ....... $7, 183,841
31
0
12
12
-3
11
8
8
14
-3
13
3
-~
10
_2
2
3
-2
_5
9
15.5
14.0
14.0
18.6
7.7
23.3
20.3
19.2
13.3
19.0
15.0
15.0
15.8
13.1
14.6
15.5
11.2
1.4.5
11.4
16. 1
12.7
14.9
15 .8
10.6
19.4
18.4
11..4
lB.l
12.2
16.8
17.8
15.0
14.9
20.5
8.3
26.2
23.2
22.0
15.0
22.7
14.0
17.8
14.8
12.0
17.0
13.7
16.2
16.1
11.3
20.9
1 Deblh to demand deposit accounh o f Individua ls, partnerships, a nd corporations and
of states and political subdivisions.
2 Demand deposit accounts of individuals, partnerships, and corporations and of states
and politico I subdivisions .
S These flgures Include only one bonk in Texarkana, Texas. Toto ! debits fo r all banks in
Texarka na, Texas-Arkansas, including two bonks located in the Eighth District, amounted to
$40,399,000 for
monlh of April 1956.
tn.
MONTHLY BUSINESS REVIEW
93
CONDITION OF THE FEDERAL RESERVE BANK OF DAllAS
CRUDE Oil, DAILY AVERAGE PRODUCTION
(In thousands of dol lars)
lin thousands of barrelsl
May 16,
May 18,
April 18,
1956
Item
1955
1956
Change from
April
Total gold certiflcate reserves •• • • .•.........
Discounts for member banks •• • ..•. • ••••••••
Other discounts and advances .. .. . ... .... . .
U. S. Government securities .. . . .. .......... .
Totol earning assets ••••• •• ••• .•• •• ••• • ••••
M e mber bank reserve deposits .... . ...... . . .
Federal Reserve notes in actual c;irculation • . •• .
$701 ,182
36, 950
o
923,048
959, 998
929,513
681,656
$755,819
4,850
3,760
946,81 0
955,420
98 9,235
7 0 6,684
Area
1956 1
1955 2
ElEVENTH DiSTRiCT ••••.• ••
Texas ......... • .... •• ••
3,398.8
3,029.8
612.5
1,253.2
214.7
95.0
854.4
248.1
120.9
3,353.3
3,016.5
646.8
1,187.5
234.6
91.5
856.1
220.2
$72 1,400
2 3,900
o
9 28,397
952, 297
952,0 51
680,295
Gulf Coast •.. .. .... • ..
West Texas • ...... •. ••
Easl Texas (proper) .•..•
Panhandle ...•. ••. .• • .
Rest of State .•.. ... •••
Southeastern New Mexico • •
marily the smaller number of business days in April, April
debits this year exceeded April 1955 debits by 8 percent.
The annual rate of deposit turnover in April was below the
March figure but was higher than the rate in April 1955.
NEW MEMBER BANK
The Long Point National Bank of Houston, Houston,
Texas, a newly organized institution located in the
territory served by the Houston Branch of the Federal
Reserve Bank of Dallas, opened for business May 19,
1956, as a member of the Federal Reserve System. The
new bank has capital of $250,000, surplus of $100,000,
and undivided profits 01 $50,000. The officers are:
Robert V . Moise, President; Robert H. Barry, Jr., Vice
President; and George E. Sullins, Cashier.
NEW PAR BANK
The First State Bank, Louise, Texas, an insured, non.member bank located in the territory served by the
Houston Branch 0/ the Federal Reserve Bank of Dallas,
was added to the Par List on its opening date, May 7,
1956. The officers are: fohn Hancock, President; W. M.
Crowell, Vice President; and L. S. Stockton, Executive
V ice President and Cashier,
Several important factors influ·
enced the level of activity in the
Nation's oil industry during April
and early May. An unseasonable cold
wave in the northern sections of the
country spurred demand for heating fuels , which, in turn,
stimulated refinery activity in early May. On the other hand,
the climbing level of crude oil stocks and the high level of
gasoline stocks created downward pressures upon production
and refinery runs.
Crude oil production in the District in early May averaged
3,350,000 barrels per day, or 1 percent below April but 6
percent above May 1955, However, further reductions in oil
allow abIes for Oklahoma, Texas, and Louisiana will curtail
crude oil production during lune. In the Nation, crude oil
production averaged 7,049,000 barrels per day, which is also
~ 1 percent below April and 6 percent above May last year.
Crude run s Lo refinery s tills in the District averaged
2,374,000 barrels per da y during early May, or 4 percent
above the April level and 9 percent more than in Maya year
. April
Northern louisiana .•• • .. • •
OUTSIDE ELEVE~TH DISTRICT. 3,744.6
UNITED STATES ..... . ... .. . 7,143.4
SOURCES~
116.6
3,533.4
6,886.7
March
1956 1
3,388.4
3,026.1
614.9
1,233.4
220.5
94.1
863.2
241.1
121.2
3,769.0
7,157,4
April
March
1955
1956
45.5
13.3
-34.3
65.7
-19.9
3.5
-1.7
27.9
4.3
211 .2
256.7
10.4
3.7
-2.4
19,8
-5.8
.9
-8.8
7.0
- .3
-24 ,4
-14.0
'Estimated from American Petroleum Institute weekly reports.
I United States Bureau of Mines.
ago. This contraseasonal gain in refinery runs was evident
throughout the Nation, as national crude runs averaged
7,821,000 barrels per day - which is 4 percent above April
and 7 percent above the year·earlier average.
Stocks of crude oil in the Nation on May 12 totaled
273,606,000 barrels, or almost the same as on April 28 but
2 percent below May 14, 1955. Crude stocks have risen sharply
in recent weeks, as production has been maintained at high
levels in relation to refinery runs. Stocks of the four major
refined products on May 11 were 1 percent above April 27
but 2 percent less than a year earlier. The recent increase
stemmed entirely from gains in kerosene and distillate and
residual fuel oil stocks, as gasoline stocks declined 1 percent.
Gasoline inventories on May 11 totaled 187,708,000 barrels,
or about 11,000,000 barrels below the peak reached in March
this year but 10 percent above the level of stocks on May 13,
1955.
Total demand for the four major products in the 5 weeks
ended May 11 was 7 percent below the previous 5-week period
but 9 percent above the comparable period a year earlier.
Kerosene and distillate and residual fuel oil demand declined
seasonally until very recently, while gasoline demand showed
a 7-percent gain from the previous 5·week period.
Imports in the 5 weeks ended May 11 averaged 1,282,000
barrels per day, or 2 percent below the level in the previous
5 weeks but 19 percent more than in the corresponding period
of 1955. Most of the recent loss stemmed from a decline in
crude imports; moreover, a large portion of the year·to-year
gain was occasioned by a 25·percent increase in crude oil
imports. Refined products imports were 1 percent below the
previous 5·week period and 8 percent above the corresponding
period a year earlier.
Nonagricultural employment in the
five states lying wholly or partly
within the District increased less than
seasonally during April t04,038,200,
which is 15,400 more than in March
and 144,900 above a year earlier. Service and government em·
pl oyment accounted for the largest month· to-month increases;
the below·normal gain in trade employment reflected the ear·
lier elosing of the pre· Easter buying season this year. Construction employment rose less than seasonally because 3,000
MONTHLY BUSINESS REVIEW
94
NONAGRICULTURAL EMPLOYMENT
BUILDING PERMITS
Five Southwestern Stotes 1
4 months 1956
Number of persons
April
1956
Type of ompJoyment
April
1955r
Total nonagricultural
wage (lnd sala ry workers •• 4,038,200
Manufacturing •.. ..... . .•
750,500
Nonmonufacturing . ..•. ... 3,2 87,700
Mining .•• . .....•• . .. •
251,500
Construction • .• .•••••••
278,500
3,893,300
712,000
3,181,300
Transpor'ation and public
utilities • •.... .•••. . .
394,400
1,028,900
171,000
Service .............. .
473,100
GOYernment •••••••••• •
690,300
Trade •........•••..•.
Finance •••• •••••••••••
240,500
271,100
378,900
1,008,600
163,7 00
459,200
659,300
Ma rch
1956
f~5~
Marth
1956
3.7
.4
SA
3.3
4.6
2.7
0
.5
0
.9
4.1
2.0
4.5
3.0
4.7
-.2
.3
.5
1.7
.4
4,022,800
750,8 00
3,272,000
251,500
276, 100
395,300
1,026,200
170,100
465 ,300
687,500
construction workers were idled by labor-management dis·
putes in April.
Manufacturing employment was almost unchanged at
750,500. The chemical industry, affected by a work stoppage
of 700 employees, accounted for one of the largest declines
in manufacturing employment. Transportation equipment
manufacturing showed the largest employment gain, as increases in aircraft and shipbuilding employment more than
offset layoffs in automobile assembly work.
Unemployment continued to decline in April as a result
of the increase in jobs and the temporary out.migration of
seasonal farm and construction workers. In Texas, the only
District state for which data are available, unemployment
declined from 11 3,500 in March to 108,700 in April.
Labor.management disputes which began the first week of
April continued through the month to idle a large number
of construction and operating petroleum and chemical workers along the Gulf Coast, A wage increase granted during
the first week in May resulted in the return of some of the
operating workers to their jobs. However, disputes in other
areas are reported to have idled additioual construction
workers during May.
Total construction contracts awarded in the Distri ct during
April declined 1 percent from the March level. The value of
residential awards turned upward with a 26·percent gain, but
VALUE OF CONSTRUCTION CONTRACTS AWARDED
(In tho usands of dollarsJ
January_April
ELEVE~TH
DISTRiCT ••••
ResldentiClI ....... ..
All other •..... . .. .•
UNITED STATESI ......
Reddential. ...... . .
All other . • ........ .
April
1956
April
1955
$ 183,657 $ 157,267
85,824
65,592
97,833
91,675
2,421,497 2,322.085
1,144,160 1,070, 129
1,277,337 1,251,956
1 37 states east of 'he Rocky Mountains.
SOURCEI F. W. Dodge Corporation.
March
1956
1956
April 1956
April
Area
1 Ariz.ona, Louisiana, New Mex1c:o, Oklahoma, and Texas.
r-Revi$ed.
SOURCEI State employment Clgencies.
Areo and type
Percentage
change in
valuation from
Percent chanoe
April 1956 from
1955
185,447 $ 733,960 S 564,513
68,119
330,869
267,262
117,328
403,09 1
297,251
2,381,907 8,521,369 7,523,497
1,105,365 3,743,188 3,475,316
1,276,542 4,778,181 4,048,181
Number
ARIZONA
Tucson ...... .
469
LOUISIANA
Shreveport ....
423
TEXAS
Abilene . ......
163
Amarilla .. . . . ,
283
Austin ....... .
237
Beaumont • .. . .
339
Corpus Christi .
363
Dallas ..•... . . 2,532
EI Paso .......
357
Fort Worth .•. .
756
Galveston . • .•.
97
HOu5ton ..... .
949
Lubbock ..... .
200
Port Arthur ....
220
San Antonia . . . 1,893
Waco ........
290
Wichita Falls ..
110
Valuation
Mar.
1955 1956 Number
Valuation
Percentage
change in
valuation
from 4
months
1955
-11
1,576
$ 5,721,654
41
2,387,212 -72
10
1,745
10,294,506
-29
1,506,4 82 -16
1,879,528
2
5,543,833
50
84 2,072 -32
1,480,492
62
10,762, 859 -22
2,2 23, 166 _4 1
3,527,113 - ,(1
1,279,619 282
15,397,759 _4
1,724,460 -13
386,838
85
5,13 0,591
2
2,327,405 107
714,280 -47
-65
10
_28
68
-45
7
-12
-8
602
2
766
866
1,083
1,132
1,503
8,174
1,560
2,714
374
3,768
944
729
7,274
1,115r
477
9,786,309
7,031,193
19,074,989
4,992,874
7,827,698
57,405,513
10,092,579
13,108,282
2,318,180
56,919,203
7,311 ,992
1,6 40,416
26,474,699
6,1 86,139r
2,726,800
46
-24
35
49
-36
-11
-24
-38
147
8
-24
-12
23
12
-38
Total-17cH;e! .. 9,681 $58,100,629 -19
-6
35,800r $248,913,026r
-4
986,920
7
-14
-41
1
30
22
r-Revhed.
"all other" awards decreased 17 percent. However, the $183,657,000 value of April awards was 17 percent above the level
of a year earlier. Residential awards reflected a year·to-year
gain of 31 percent, and "all other" awards were up 7 percent.
In the Nation, as in the District, the value of construction
contract a wards showed little change from March to April.
Total awards increased only 2 percent, residential awards rose
4 percent, and "all other" awards increased less than 1 per·
cent. April awards maintained a narrow lead of 4 percent
over the April 1955 level. Residential awards were up 7 percent and "all other" awards were up 2 percent from the yearearlier values.
Cumulative construction awards during the first 4 months
of 1956 were 30 percent higher than in the corresponding
period last year in the District and were up 13 percent in the
Nation. In the District, "all other" construction led the gains
with an increase of 36 percent, while residential awards were
up 24 percent. "All other" awards also led the national gains,
but with an increase of only 18 percent. Cumulative residen·
tial awards in the Nation showed an 8-percent increase.
Prospects for increased District sulfur and sulfuric acid
production are indicated by expansion programs announced
during the past 2 months. Two sulfur companies have plans
under way for expanded mine production in the gulf coast
area; and two petrochemical companies, one in west Texas
and one along the coast, plan increased sulfur recovery from
refinery gases. District sulfur production has been enlarged
in response to the increased industrial use of sulfuric acid
and the greater use of sulfur in fertilizers. Taxed production
in Texas amounted to 953,417 long tons during the first quar·
ter of 1956, reflecting an increase of 9 percent over the corresponding period a year earlier.
Tc!R!.
· ~ · · 'ffSiI
FEDERAL RESERVE
DISTRICT
@FedFRASER