Full text of Review (Federal Reserve Bank of Dallas) : June 1958

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BUSINESS

REVIEW
JUNE 1958
Vol. 43, No.6

BUSINESS LOANS AT MEMBER BANKS
The Federal Reserve System, with the cooperation of the American Bankers Association and the Robert Morris Associates, conducted a national survey of loans to business by member banks
as of October 16, 1957, or about 2 years after the previous such
study. This article will present the survey results for the Eleventh
Federal Reserve District, while the national results are published
in the April Federal Reserve Bulletin. The information from the
survey is stated in terms of estimates derived from the sample of
responses, and these are subject to the statistical variations
inherent in this method of inquiry.
The 2-year interval separating the business loan surveys was
one in which the demand for bank credit was growing, particularly
from businesses following expansion programs and financing a
larger volume of activity. The survey results furnish a still-life
portrait of the loan volume as of a given date; however, changes
which occurred during the biennium are partly reflected in the
estimates since some loans made earlier had not matured. As the
Federal Reserve System was pursuing a policy of monetary restraint in this period, the survey information provides at least a
broad picture of the response of the banking system's business
lending to the combined pressures of heavy credit demands and
an anti-inflationary central bank policy.
The Borrowers

Total business borrowings at Eleventh District member banks
on October 16, 1957, were estimated at $2.1 billion, reflecting
an Increase of 10.4 percent since October 5, 1955. This rate of

RESERVE
DALLAS ,

BANK

OF

DALLAS

TE~AS

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

BUSINESS LOANS OF MEMBER BANKS, 1957 AND 1955
BY BUSINESS OF BORROWER
Eleventh Federal Reserve District
(Estimates of outstanding loans)
AMOUNT OF LOANS
In thousands
of dollars
Business of borrower

1957

663,268
MANUFACTURING AND MINING • .. . . •••• •• ••
61,791
Food, liquor, and tobacco . . ••••••. . .• • ••.• .
27,862
Textiles, appare l, and leather ••••••• • •••••• .
96,929
Meta ls and metal products • . • .• . • ••• ••.. •• .
391,881
Petroleum, coal, chemicals, and rubber •• . • . • ••
84,805
All other •••• .. ••.••.••• . ..•••••• •. • . ••••
517,846
TRADE •••• • •• • •• ... •• .. ••••• .. .••••.••• ..•
257,186
Retoil trade •... . .• ... •••• . .•.••••.• . • ...
174,521
Wholesale trade .••••••••• .. • . •••••••••••
86,139
Commodity dealers . ••••••••••••••• .. • ••• •
942,906
OTHER .• •••••••••••••••. .. •••••••••••. •• •
104,919
Sales flnance companies . .••••• . •••• . . .. •.•
Transportation, communication, and
74,401
other public utilities .••• • ••••• •. •••••. .. •
219,567
Construction • • . . •• • ... •. •••• •• .. • . •••• ...
204,342
Real estate •• •••••.••••••.• . ••.••• ... .•••
144,854
Service flrms •.••..• .• •••.• .... ..•• .•. ..••
194,823
All ather nonflnancia l business •• .. .••••• .. • ••
ALL BUSINESSES •.••••• . • •• .• •• •••••• .. ••• . 2,124,020

1957

1955

1957

1955

1957

1955

615,032
44,950
17,509
80,638
395.590
76,345
352,378
199,271
95,5 18
57,589
956,815
126,528

31.2
2.9
1.3
4.6
18.4
4.0
24.4
12.1
8.2
4.1
44.4
4.9

32.0
2.3
.9
4.2
20.6
4.0
18.3
10.3
5.0'
3.0
49.7
6.6

15,894
1,930
794
2,908
6,4 8 1
3,781
35,241
25,764
7,9 11
1,5 66
44,643
1,420

14,287
1,590
750
2,504
6,073
3,370
28,906
22,352
5,600
954
39,857
1,745

16.6
2.0
.8
3.0
6.8
4.0
36.8
26.9
8.3
1.6
46.6
1.5

17.2
1.9
.9
3.0
7. 3
4. 1
34.8
26.9
6.8
1.1
48.0
2. 1

63,582
227,9 9 0
241 ,568
137,419
159,728
1,924,225

3.5
10.4
9.6
6.8
9.2
100.0

3.3
11.8
12.6
7.1
8.3
100.0

2,926
9,4 14
5,768
17 ,058
8,057
95,778

1,959
9,338
5,652
14,953
6,2 10
8 3,0 50

3.1
9.8
6.0
17.8
8.4
100.0

2.4
11.2
6.8
18.0
7.5
100.0

Member bank extensions to manufacturing and min~
ing concerns showed only a moderate rise, mainly
reflecting the minor reduction in loa~s to petroleum
and chemical firms. These firms contmued to be the
largest claimants of bank loan funds in the Southw~st.
The cutback in petroleum demand after the spnng
of 1957, which eventually reduced drilling, undoubtedly contributed to the decrease in petroleum loan
volume. Each of the remaining types of industrial
loans registered an increase.
Wholesaler borrowings, reflecting the largest gain,
rose $108 million, or about 70 percent, while the number of such loans outstanding advanced 46 percent.
Inventory accumulation, which was at or near its cyclical peak when the survey was taken, accounted for
much of the demand. In addition, these borrowings
helped to finance trade credit extended by wholesalers
and, thus, supplemented other retail borrowing to some
extent. Retailers stepped up their borrowings by $58
REVIEW

Percentage
distribution

1955

increase was well below the 32-percent gain shown nationally and, indeed, was the smallest percentage
growth of the 12 Federal Reserve districts. While the
number of such loans rose 15 percent, the average dollar value of loans outstanding declined from $23,169
to $22.176.

I~ U SlNESS

NUMBER OF LOANS

Percentage
distribution

million, a 29-percent rise. Throughout the 2-year
period between the surveys, retail sales in the District
were a source of considerable strength, requiring additional funds to finance larger stocks and to handle the
expanded trade volume.
Real-estate and construction loans - of greater importance in the Southwest than in the Nation - each
reflected changes in residential constructton and the
mortgage market between surveys. In the fall of 1955,
heavy demands for mortgage funds stemming from the
housing boom encouraged a widespread move to employ "warehousing credit"- that is, temporary accommodation from the banks to handle the peak load. This
congestion was subsequently relieved, however, as the
supply of mortgages receded from peak levels and the
volume of residential building declined. By the fall of
1957, the dollar amount of construction loans held by
District member banks regiStered a 2-year decline of
$8 million, or 4 percent. Real-estate credit, which includes commercial and industrial mortgages and loans
to real-estate finns, declined $37 million, or 18 percent. Nevertheless, the number of real-estate and construction loans increased moderately in the face of the
lower over-all volume of credit extended to these
industries.

BUSINESS LOANS OF MEMBER BANKS, OCTOBER 16, 1957
BY BUSINESS AND SIZE OF BORR'OWER
Eleventh Federa l Reserve District
(Estimate s of outstandi ng loans. In thousands of dollars)
Size of borrower (Total assets, in thousands of dollars)

Business of borrower
MANUFACTURING AND MIN ING •. .. . . . .• •.. .
Food, liquor, and tobacco . . . .••.•...••.. .. •
Textiles, appare l, and le ath e r .. . •. .• . .. ••.. .
Me tal s and me ta l products . ... .... •• .... ...
Petrol e um , coa l, ch e micals, and rubb e r •. . .. .. .
All ather . .... .... •.. . . . .•.• ... ..•. . . . •..
TRADE •••.......•.......... . ..•.. .•. •• . . . •
Re tail trade ... ... • . .. .. •.. ... ..... . .•. ..
Wholesa le trade .•......•.....••...•••.. .
Commodity dea lers ...•. .... ..• .. . .•... .. .
OTHER .•....••.. . . . .• ... •. .• . ... .•• . ...••
Sales flnanc e companies .. . . . .•• '..••••. . .•.
Transportation, communication, and
other publ ic utilities ...... ••.. . ..• •. . . . . •
Construction ... . .... . ...... ..•. .. . . . .. .. .
Re al estate .... . .. . .. . . . ... .. .. .. ••• . . . .•
Service flrms .....•.. . . ..• •. . ... .• • .. .. .. .
All other nanflnancia l business . . .• .••. . .••...
ALL BUSINESSES ... . •. .. .. .. ... . .... •. .... •

Less
than 50

2501,000

1,0005,000

5,00025,000

25,000100,000

100,000

50-250

12,782
2,089
420
2,059
4,282
3,932
42,185
34,755
6,638
792
51,342
934

7 1,283
9,113
3,804
11,70 2
30,822
15,842
134,702
87,529
36,276
10,897
181,103
8,21 0

135,789
13,072
5,911
20,927
79,365
16,514
132,158
57,882
63,158
11,118
243,729
25,350

211 ,001
11,726
9,015
22,964
149,777
17,519
110,249
41,696
40,984
27,569
251,416
22,455

138,294
21,133
6,635
10,727
79,197
20,602
69,384
23,250
21,386
24,748
110,569
9,002

63,766
249
20,274
33,889
9,354
10,033
1,068
4,723
4,242
44,977
4,594

27,908
4,263
2,077
8,016
13,552
15,874
8,391
813
6,670
52,298
34,070

260
997
1,042
3,261
2,615
543
103
7,472
304

3,715
12,193
4,404
19,314
10,782
106,309

9,825
49,650
28,292
50,027
35,099
387,088

19,298
63,994
54,692
36,885
43,510
511,676

15,437
63,773
72,784
23,265
53,702
572,666

7,253
23,315
31,376
8,042
31 ,581
318,247

12,496
2,968
10,717
511
13,691
118,776

6,082
914
1,008
5,113
5,111
96,080

295
2,760
1,069
1,697
1,347
13,178

Size of Borrower

Between the surveys, the volume of borrowings by
companies with above $5 million in total assets rose
from 21 percent to over 25 percent of the total; the
$250,000-$1 million category also registered a relative increase. The smallest borrowers - those having
less than $50,000 in total assets - absorbed 5 percent
of the total pool of credit in 1957, down from 6.3 percent in 1955. The number of loans to borrowers in the
smallest group accounted for a lower proportion of the
1957 total. However, the loans which could not be
classified according to size of borrower represented
about half the change in the proportion of loans to the
under $50,000 size class; most of these "not ascertained" items presumably were loans to smaller borrowers. The actual number of loans to each size of
business, including the under $50,000 group, increased.
Dollar amounts outstanding rose in most size classes,
the only notable exception being a $15.6 million decline for the less than $50,000 class.
With the largest number of loans to business borrowers in 1957 originating in the $50,000-$250,000
class rather than in the $50,000 and below class, as in
1955, it appears likely that the natural increase in business size was partly responsible for the changing allocation of credit. Southwestern banks continued to serve

°

or more

°

Not ascertained

2,445
146

°

businesses ranging in size from the small neighborhood
merchant to the nationally prominent manufacturer.
The largest dollar volume of credit was granted to
fil'ms in the $1 million-$5 million asset class for six
types of business, and the nearby size groups absorbed
the largest amounts for almost all the other businesses.
One exception was the sales finance companies; firms
having $100 million or more in assets were the heaviest
users of bank funds in this field, reflecting the elaborate
credit network of the large national companies. Other
exceptions included service firms and retailers, as those
having assets between $50,000 and $250,000 borrowed
the largest aggregate amounts, indicating the concentration of small concerns in these types of businesses.
BUS INESS LOANS OF MEMBER BANKS, 1957 AND 1955
BY SIZE OF BORROWER
Eleventh Federal Reserve District
Amount of loans

Size of borrower
(Total a ssets, In thousand s

Numb er of loans

(Percentag e of total)

(Percentag e of total)

of dolla rs)

1957

1955

1957

1955

l ess than 50 . . ..... . . .. . .....
50-250 ..... •. .... . ••. .... .
250-1,000 ...... .. .. .. .....
1,000-5,000 . ...••.. ' " ... . .
5,000-25,000 . •. ..•...••. . .•
25,000-100,000 .............
100,000 or more • •••• •• ••••••
Not a scertain e d .• . . . .• • ..• • ..

5.0
1B.2
24.1
27.0
15.0
5.6
4.5
.6

6.3
19.4
23 .5
29.8
13.1
3.7
4.2
.0

36.2
37.6
15.6
5.8
1.6
.5
.5
2.2

40.2
36.7
14.4
6.2
1.5
.5
.5
.0

All BORROWERS • • ..•...••

100.0

100.0

100.0

100.0

BUSINESS

REVIE~I

BUSINESS LOANS OF MEMBER BANKS, OCTOBER 16, 1957
BY BUSINESS OF BORROWER AND SIZE OF BANK

SHORT-TERM BUSINESS LOANS OF MEMBER BANKS, OCTOBER 16, 1957
BY BUSINESS OF BORROWER AND SIZE OF BANK

Eleventh Federal Reserve District

El eventh Federal Rese rv e District

(Esti mates of outstanding loans. In thousands of dollars)

(Estimates of outstanding loans. In thousands of dollars)

Size of bank
(Total deposits, in millions of dollars)
10- 100

Business of borrower

Under 10

MANUFACTURING AND MINING . .. ....... .
Food, liquor, and tobacco • . .•..••..••••. .
Textiles, appare l, and leath er ..••.. ..... .
Meta ls and metal products . •..•....••.••.

34,10 2
5,374
3,362
3,687
13,231
8,448
75,152
50,506
14,973
9,673
82,631
8,297

157,187
16,6 11
4,549
22,644
87,389
25,994
191,920
120,077
59,209
12,634
263,529
27,649

47 1,979
39.806
19,95 1
70,598
291,261
50,363
250,774
86,603
100,339
63,832
596,746
68,973

3,728
19,384
11,606
22,629
16,987
191,885

14,603
68,933
51,040
57,660
43,644
612,636

56,070
131,250
141,696
64,565
134,192
1,319,499

Petroleum, coal, chemicals, and rubber .••..

All other .•...... .. ....... . .......... ..
TRADE ....... ... ... .... ....• •... ... ....
Retail trad e ..•••..••••.•..•••••..•..••

Wholesale trad e ....•......••...... .. . •
Commodity dealers •••• • ••••••• . • •••••••

OTHER .. .......................•.......
Sales finance companies •.. • .• •..••••.. ..
Tronsportatio." communication, and other
public utilities ••••.•.• . .•.• •... . .. ••..
Construction • •• •.• • .. •. ...•..•.... •....

Real estate ••••••..••..••.•••.••.••...•
Service flrms •••• •••••••• • • •• • ••• • •• ••• •
All other nonflnoncial busin ess •••...•..••..

All BUSiNESSES ..... . . .. •••....... . .. ...

100 or more

Size of Bank

Changes in the distribution of commercial and industrial loans at District member banks between 1955 and
1957 reveal a tendency for the smaller ban~s to step
up their business lending. The smaller bank SIze groups
each accounted for a larger share of the total, whIle
the relative share of banks having $100 million or more
in deposits declined slightly. In terms of the number of
loan contracts on the books, the changes ~e~'e less p~o­
nounced, but the smaller banks in the DIstnct also I~­
creased their relative proportion of customers. There IS
reason to believe that the large banks felt the effects of
monetary pressure more fully than the smaller institutions, whose operations frequently tend to reflect local
economic trends.
Banks with $100 million or more of deposits increased their business loans by $90 million, with gains
scattered throughout a wide range of busi.ness classifications, most notably wholesale and retaIl trade ..R~al­
estate loans at these banks were down $40 mIllIon;
smaller declines were evident in petroleum and chemical and construction credits. At the banks in the $10
million-$100 million size range, business loans expanded 14 percent, with manufacturing and mining
credits and trade borrowings rising at a swifter pace.
Maturities

Short-term credit absorbed 70 percent of the commercial and industrial loans made by the District's
member banks, or slightly less than in the previous survey. The relative decline at banks with $100 million or
more on deposit was offset by the larger loan volume at
I:USINESS REVIEW

Size of bonk
(Total deposits, In millions of d,IIors)
BUlin ess of borrower

Und er 10

MANUFACTURING AND MINING . .. .. . .... .

26,806
4,09 1
3,2 2 1
3,053
9,629
6,812
59,305
38,309
12,059
8,937
62,459
7,589

106,194
8,287
4,058
16,8 21
58,534
18,494
157,172
97,580
48,16 1
11 ,431
191,898
25,030

277,873
31,146
19,764
55,895
130,642
40,426
208,991
54,805
91,290
62,896
403,47 1
68,209

2,429
15,742
8,263
14,962
13,474
148,570

8,281
52,16B
39,836
33,103
33,480
455,264

12,241
97,825
85,100
42,774
97,322
890,335

Food, liqu or, and tobacco .. .•. . ••..••. . ••
Textil es, appare l, and leather •.••.• •• .. •.
Meta ls and metal products ... •••• .. ....••
Pe trol eu m, coal, chemicals, and rubber •••••

All other . . .. .. .. ..... .... .. . .... ......
TRADE ............ . . .. .... .. ........ • ..
Re tail trad e ...• .. .....•.•..•.•.•....• .

Wholesale trade ..... . .. . ..•...........
Commodity deal e rs ....• .•.. . • •.. • •. .•••

OTHER . . ....... .. .................. ....
Sales flnance companies • ••...... •.• •. •••
Transportation, communication, and other
public utilities .•. • ...• •... ••... " ..•••
Construction ...••.....•...•.•...••...••
Real estate ....... • . .. . .•.. •• • . . . .•...•
Se rvice flrm s ••• • .... .•.•.. .. •. . ••..••. .
All other nonflnancial busine ss •.•...... . ..•

All BUSINESSES . .. .......... . . ..... .....

10-100

100 or more

banks having deposits of less than $10 million. However, the actual dollar volume expanded at all classes
of banks.
The largest banks also saw a relative decline in their
term loans (maturities over 1 year), although these
banks continued to originate more than two-thirds of
the total. The number of term borrowers at all banks
rose almost one-fourth, or somewhat more than the
15-percent advance in the dollar volume of term loans.
Not only did the changing composition of demand affect
this result, but the growing importance of smaller banks
in the term lending field also helped to lower the
average amount of term loans.
The banks expanded intermediate-term loans (1 to
5 years) 25 percent, while long-term credits (over 5
years) were reduced 6 percent, the decline stemming
solely from liquidation at the banks having deposits of
$100 million or more. Since reserve pressures tended to
be more intense at the largest banks, these long-term
credits presumably were scrutinized with great care.
The decline was centered in manufacturing and mining
loans at the largest banks, with other categories showing
offsetting changes. Intermediate-term credit, on the
other hand, advanced at banks of all size classes, despite
an $11 million payoff in petroleum and chemical loans.
Real-estate, construction, trade, and transportation
borrowings in the 1- to 5-year range showed particular strength.
For all bank classes with over $10 million in deposits, petroleum and chemical companies provided the
largest source of demand for term loans. The use of pro-

INTERMEDIATE- AND LONG-TERM BUSINESS LOANS OF MEMBER BANKS,
OCTOBER 16, 1957, BY BUSINESS OF BORROWER
AND SIZE OF BANK

AVERAGE INTEREST RATES ON MEMBER BANK
BUSINESS LOANS, OCTOBER 16, 1957, AND OCTOBER 5, 1955
BY BUSINESS OF BORROWER AND MATURITY OF LOAN

Eleventh Federal Reserve District

Eleventh Federal Reserve District

(Estimates of outstanding loans. In thousands of doliars)

(Pe rcent per annum)"

Size of bank
(Totol deposits, in millions of dollars)

Under 10

Business of borrow er

10-100

Short-term loans

All loans
100 or more
1957 1955

Business of borrower

MAN UFACTURING AND MIN IN G ...........
Food, liqu or, and tobacco .. ....... ..... ..
Tex til es, appar el, and leather •.. ... ... ...
Metals and metal products ... ...•••...•..
Petrol e um, coal, chemicals, and rubber . ....

All other ..............................
TRADE .. .. . ... ... ....... ........ ... . ...
Retail trad e ....... . .... . ... .. ... ... .. .
Wholesale trade ... . ... .. .. .. . ... .. ... .
Commodity d eal ers .. ........... .. ......

OTHER ........... . . .... . . . ... . . ........
Sales Anonce companies ... ..............
Transportation, communication, and other

public utilities .... . ... . ....... .. .. ....
Construction • ..•...••.....•....••.•••..
Real estat e .•..•• ..••.•..•. •• .• •• .••...

Service Arms•. ••.... • .•.

0" '

•

••

••• •• •

••••

All other nonAnanc1al business ... ..........

All BUSiNESSES ...•.. . . . . . ..............

(1 year or less)

7,294
1,282
141
634
3,602
1,635
15,846
12,196
2,914
736
20,171
709

50,994
8,325
491
5,823
28,855
7,500
34,747
22,497
11,047
1,203
71,632
2,619

194,108
8,660
187
14,703
160,620
9,938
41,784
31,798
9,049
937
193,275
764

1,298
3,642
3,344
7,666
3,512
43,31 1

6,323
16,765
11,203
24,557
10,165
157,373

43,828
33,426
56,596
21,792
36,869
429,167

Interest Rates

Average interest rates on commercial and industrial
loans rose from 4.6 percent to 5.2 percent between
1955 and 1957, a period in which strong and active
demand for credit contributed to a higher level of rates.
The cost of loans with over 1 year to maturity rose
slightly more than the rate on short-term credits, and all
industrial groups were paying higher interest rates.
Among the short-term borrowers, commodity dealers
- who frequently use acceptance financing and whose
money costs are tied closely to money market trends showed the most rapid rise in borrowing costs. On term
loans, tlle average rate to wholesalers reflected the most
rapid advance. The increases in average interest rates
at banks of various size classes were similar.
The largest borrowers paid an average rate of 4.3
percent on their loans as of October 16, 1957, compared with 3.2 percent in 1955. Since many of these
firms are prime borrowers, their borrowing cost reflects
mainly changes in the prime rate. The increases for
smaller businesses were less rapid. The traditional pat-

(Over 1 year)

- - -19551957

1957

1955

4.5
4.4
4.6
4.6

5.2
5.0
4.9
5.1

4.5
4.2
4.5
4.5

5.1
5.3
5.8
5.7

4.5
4.9
4.7
4.9

5.1
5.4
5.4
5.6
5.3
5.1
5.2
4.8

4.4
4.6
4.7
5.0
4.7
3.9
4.6
4.1

5.2
5.4
5.3
5.6
5.2
5.1
5.2
4.7

4.4
4.6
4.7
5.0
4.7
3.8
4.6
4.0

5.0
5.1
5.7
5.6
5.9
5.6
5.3
5.2

4.5
4.7
5.0
5.0
4.8
4.9
4.6
4.8

5.1
5.5
5.3
5.6
4.8
5.2

4.1
5.1
4.6
5.0
4.3
4.6

5.3
5.5
5.2
5.5
4.9
5.2

4.2
5.0
4.7
5.0
4.3
4.6

5.1
5.7
5.3
5.7
4.6
5.3

4.0
5.6
4.3
5.0
4.3
4.6

MANUFACTURING AND MIN IN G .. • 5.1
Food, liquor, and tobacco ... ..... 5.1
Textil es, apparel, and leath er .... 4.9
Meta ls and metal products... . ... 5.2
Petroleum, coal, ch emicals, and
rubber . ... ...... .......... •

All other •.. • ......•..•.. .. .. ..
TRADE .... .....................
Reta il tra de ...•• . ..........• ••
Wholesale trade .. . ...•.•.....•
Commodity d eal ers . . .. . . . .....•

OTHER •... ........... .. .. .. ...•
Sales Ana nee companies . ........
Transportation, communication, and
oth er public utilities .•.. . .... ..
Construction . .......... . .......
Real estat e ...... ..............
Service flrms•.•. ...............
All other nonflnancial busine ss ... ..

All 8USINESSES •.....•..•.••....

duction loans, which are liquidated as output is sold,
has aided the growth of this type of credit, and southwestern banks, early advocates of the procedure, have
continued to make active.use of such loans. Moreover,
since the average petroleum and chemical loan amounts
to about $60,000 in the Eleventh District, the frequency
of use rapidly diminishes at the small banks, whose
legal limitation on loans impedes sizable petroleum
financing.

Inte rmediate· and
long·term loans

AVERAGE INTEREST RATES ON MEMBER BANK
BUSINESS LOANS, OCTOBER 16, 1957, AND OCTOBER 5, 1955
BY SIZE OF BORROWER AND MATURITY OF LOAN
Eleventh Federa( Reserve District
(Percent per annum)"

Short·te rm loans
Size of borrower
(Total assets, in thousands

(1 year or less)

All loans

Inte rmediat e· and
long·term loans

(Over 1 year)

of dollars)

1957

1955

1957

1955

1957

1955

less than 50 .•.•.. .... . ..... •
50-250 ...... ...•. ........ .
250-1,000 ..••....... .. ... •
1,000-5,000 ...... . .. •.. ....
5,000-25,000 ••.. . ..........
25,000-100,000 . •. . ..• .... ..
100,000 or more ••.•... ..... •

6.8
5.8
5.3
5.0
4.8
4.5
4.3
5.8
5.2

5.9
5.3
4.7
4.3
4.0
3.8
3.2
.0
4.6

6.6
5.7
5.3
5.0
4.8
4.7
4.4
5.5
5.2

5.8
5.2
4.7
4.2
4.0
4.0
3.3
.0
4.6

7.2
6.0
5.3
5.2
4.8
4.3
4.1
6.1
5.3

6.3
5.3
4.8
4.5
4.1
3.5
2.9
.0
4.6

Not ascertain ed .• .......... ..

All BORROWERS •.....•. . •

tern - the smaller the business, the higher the rate remained unchanged even as the entire structure moved
upward. The cost of servicing small loans necessitates
higher rates; also, a higher risk premium generally is
attached to smaller loans.
Summary

Taking part in the broad national movement toward
a higher level of commercial and industrial lending,
District member banks increased their business loans
$200 million between the business loan survey dates of
1955 and 1957. The rate of advance was considerably
lower than the national average; the modest gain reflected the trend of regional demand for credit, rather
than a differential degree of credit tightness in this
area, as deposit growth in the Eleventh District was
BUSINESS REVIE:

I

slightly above the national average. Further large gains
in petroleum credit were inhibited by the economic situation in the industry; real-estate and construction loans,
already at advanced levels in the fall of 1955, declined
as peak mortgage pressures passed and the volume of
residential construction moved lower. While economic
activity in the District during the 2 years reached record
levels, the rate of loan expansion was held to a relatively
low figure, mainly because of the loan liquidation by
petroleum, real-estate, construction, and sales finance
companies.
During 1956 and 1957, a slight shift toward larger
borrowers was evident in the allocation of business
loans, but, on balance, the change was of such modest
magnitude that the internal growth of businesses would
appear to be mainly responsible. The general level of
interest rates rose in keeping with the broad national
movement - a trend which was reversed, however,
shortly after the survey was conducted. In general, rates

for large borrowers moved up more rapidly than those
for smaller borrowers.
While shifts in the allocation of bank credit are continually being made in response to the changing economic situation of various firms and industries, such
shifts were given added importance during the period
between the surveys as a result of the prominence of
restrictive monetary policy at a time when business
credit demands were growing along a broad front. As
far as the Eleventh District is concerned, the evidence
of the survey - indicating moderate rather than extensive shifts in the allocation of loans - suggests that
monetary policy did not playa decisive role in channeling funds toward or away from any particular
groups. The effects of monetary policy, however, were
felt by District banks through the limitation upon the
growth of the total pool of bank credit, rather than its
distribution among competing uses.
BERTRAM F. LEVIN
Financial Economist

•

..
A NEW PUBLICATION
The Research Department of this Bank has prepared An Economic Fact Book on the Eleventh
District states. This reference book of statistical data contains tables on the major economic
indicators by 1O-year intervals through 1940 and yearly since 1947. No attempt is made to analyze
or interpret the information presented in the book.
Copies may be obtained, free of charge, Upon direct request to the Research Department
of the Federal Reserve Bank of Dallas.

BUSINESS REVIEW
6

BUSINESS

REV lEW

BUSINESS, AGRICULTURAL, AND FINANCIAL CONDITIONS

Employment of nonagricultural
workers in the District states
showed a small seasonal gain
in April to reach 4,240,300.
Texas unemployment declined
slightly in April, and the number claiming unemployment insurance benefits decreased significantly in
May.
The value of construction contract awards in the
District states during March was 19 percent below
a year earlier. However, residential contract awards
and other indicators of future home-building activity
in the region reflected substantial improvement during March and April.
In early May, petroleum inventories east of the
Pacific Coast were slightly under a year ago. District
crude oil production in the first half of MtJy, at
2,564,000 barrels daily, was somewhat below April
and was 28 percent less than in May 1957. For the
third consecutive month, the Texas Railroad Commission has set an 8-day producing schedule, although total allowables for June have been increased
42,603 barrels daily.

Sales at Eleventh District department stores in April showed a less
than seasonal increase of 5 percent over March and were 3 percent under April 1957. Cumulative figures for March and April, which include the
Easter period in both years, indicate that 1958 sales
in the 2 months were 1 percent below the comparable
1957 period.
The seasonally adjusted sales index for April, which
includes a special adjustment for Easter, was 151 percent of the 1947-49 average, down from 153 in March
of this year but up slightly from 150 in April 1957.
Cumulative sales through April 1958 were 3 percent
under the first 4 months of 1957.

Retail sales in April at Eleventh District department
stores rose 5 percent over March, but cumulative figures for March and April, which include the Easter
period in both years, indicate that 1958 sales in the
2 months were 1 percent under the same period last
year. The seasonally adjusted sales index (1947-49
= 100) was 151 in April 1958, compared with 153
in March and 150 in April 1957.
Cotton and grain sorghum planting made excellent progress throughout most of the District during
the past month. Wheat prospects remain favorable,
with production in the District states placed at almost
double the 1957 output. Commercial vegetable harvesting continues in south Texas, and the spring
vegetable crop (excluding potatoes) in Texas is estimated at 6 percent larger than last year's crop.
At the District's weekly reporting member banks,
commercial and industrial loans declined $23.8 million in the 5-week period ended May 21, although
the total was above the year-earlier level. Reserve
positions of District member banks remained easy
in April. The Federal Reserve Bank of Dallas reduced
its discount rate from 2% percent to 1% percent,
effective MtJy 9.

At the District's reporting department stores, April
sales of household durables, particularly major household appliances and furniture and bedding, made their
best year-to-year showing thus far in 1958, being only
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
Eleventh Fe deral Reserve Di strict
(1947-49

=

100)

SALES (Dail y averag e)
Date

Unadjusted

Seasonall y
ad lusted

1957: April ....... . .
1958: February •••••
March • • •. • •. .

147r
112
137
143

150r
143
153
151

April ••• .. • .. •

rp -

STOCKS (End of month)
Unadlusted
180r
158
168
170p

Seasonall y
adlusted
173r
163
160
164p

Re vi sed.
Pre liminary.

BUSINESS

'EVIE~

I

DEPARTMENT STORE SALES AND STOCKS
(Percentage change in retail value)

STOCKS
(End of month)

NET SALES
April 1958 from

April 1958 from
4 mos. 1958

March
1958

Area

Total Eleventh District. ....
Corpus Christi. ..........

Dallas ••................
EI Paso .................
Fort Worth ••............
Houston ..• •.. •• ..• •..••
San Antonio . ............

Shreveport, la ... ........
Waco . . .... . ... . ...... .
Other cities .............

5
10
4
7
16
-1
-11
13
13
18

April
1957
-3
-5
0
0
-5
-8

-4

-8
-6
3

compo with

4 mos. 1957
-3
-6
0
0
-3
-9
- 1
-6
-7
1

March
1958

April
1957

1
2
2

-4
1
0
-3
2
6
6

-6
-8
1
0
-7
-11
-8
-8
-12
-6

SALES AT FURNITURE STORES AND
HOUSEHOLD APPLIANCE STORES
(Percen ta ge change in retail value)

earlier, and new orders during April were 9 percent less
than in April 1957, indicating the stores' intentions to
maintain their inventories at lower levels than last year.
In April, new car registrations in the metropolitan
areas of Dallas, Fort Worth, Houston, and San Antonio
declined 4 percent from March and 33 percent from
April 1957. Fort Worth and Houston showed month-tomonth gains of 10 percent and 2 percent, respectively,
but registrations were down 12 percent in San Antonio
and 11 percent in Dallas. A year-to-year decrease of 43
percent occurred in the Houston area, while the other
three areas registered decreases of 20 to 27 percent.
Cumulative total registrations in the four areas for the
first 4 months of this year were 19 percent below those
in the first 4 months of 1957.

The high degree of mechanization on District farms was well
March
April
compo with
line of trade
1958
1957
4 mos. 1957
by area
demonstrated during the past
FURNITURE STORES
month as farmers made excellent
-1
Total Eleventh District. . . .. . . . . . . . .
-6
-3
-31
-22
Amarilla........................
-11
.
progress in planting and replantAustin..........................
-5
o
-3
Dallas..... ..... .... . ...........
-6
-6
-6
mg much-delayed crops. Although scattered light to
2
Houston. • • . . • . . . . . . . • . . . . . . . . . .
- 13
-6
18
lubbock. .• . . . . . .. . . . . .. . •• . . . ..
15
heavy rains delayed field work in some sections conSan Antonio. . . . . . . . . . . . . . . . . . . . .
-7
-3
-3
17
11
Shreveport, La.. . . . . . . . . . . . . . . . . .
-3
siderable acreages of grain sorghums and cottod were
-32
-24
Wichita Falls. . . . • . . . . . . . . . . . . . . .
-10
Other cities. . . . .. . . . . . . . . . . . . . . . .
8
-9
-3
planted or cultivated. The bulk of the indicated acreHOUSEHOlD APPLIANCE STORES
-9
Total Eleventh District. . . . . . .. . . . . .
22
ages of sorghums and cotton from the central Black-5
Dallas..........................
16
lands of Texas eastward has been seeded, except in
some low-lying areas which were flooded. Cotton in the
1 percent below a year ago. Sales of women's and ~o.wer Valley of Texas is making excellent progress and
misses' accessories and apparel were down 10 percent IS m the advanced bloom stage; in the Coastal Bend,
and 4 percent, respectively, while sales of men's and where the crop is a little later, fields are blooming.
boys' wear were 8 percent under April 1957: On the Much of the crop in the Blacklands and eastward is
other hand, sporting goods and cameras regIstered a emerging, and cotton in the Trans-Pecos area of Texas
substantial year-to-year gain of 26 percent, and silver- and in the southern portion of New Mexico is up to
ware and jewelry sales were up 11 percent.
good stands. Cotton in the High Plains area of Texas
During the week preceding Mother's Day, depart- and adjacent eastern New Mexico is being seeded.
ment store sales rose 4 percent above the comparable
Well-timed rains in the important High Plains wheat
eas of Texas and New Mexico maintained the excepweek a year ago. Total sales for the first 2 weeks in May
showed only a fractional decline from the correspond- tl~nal wheat crop in prospect. The moisture was reing period in 1957.
ceIved at a critical period in these areas since the growth
Credit customers of the District department stores of the crop ranged from the boot stage to the soft-dough
continued to reduce their indebtedness during April. st~ge. Th~ c~ndition of the winter wheat crop in the DisOutstanding balances on regular charge accounts and tnc~ at thIS tune of the year is the best in many seasons.
instalment accounts were reduced 1 percent and 3 per- IndIcated production in the District states, as of May 1,
was placed at 158,135,000 bushels or almost double
cent, respectively, from the year-earlier levels.
the output in 1957 and a third large~ than the 1947-56
Preliminary reports indicate that department store average production. In the Nation, 1958 wheat crop
inventories at the end of April were below a year ago ~ros~ects .also are favorable, and winter wheat producbut were slightly above those at the end of March. tlOn IS estImated to be in excess of 1 billion bushels or
Orders outstanding were down 14 percent from a year 43 percent larger than in 1957.
"
April 1958 from

4 mos. 1958

a:

I:USINESS REVIEW

WINTER WHEAT PRODUCTION

56 average. Livestock are in good to excellent condition virtually throughout the District.

Five Southwestern States and United States
(In thou sands of bushels)

1958
Indicated

Average

1957

May 1

Area

t~~~~~~~ :::::::::::::::::::::::::

1947-56

New Mexico ... . ... . ........ . ..... .
Oklahoma •••••••• • ••• . •••• • ••••••
Te xas .. . . . ... .. ... . ..... . . . ..... .

4,305
1,134
3,888
80,864
67,944

2, 142
1,344
1,732
43,025
33,669

735
'537
2,353
71,001
43,687

Total ••••••• • • .• • ••••••••.••••••
United States •••••••••••• • .••••••

158,135
1,009,754

81,912
707,201

118,313
849,604

1

Short-time average .

SOURCE, United States Department of Agriculture.

Planting of sorghums is under way from the Cross
Timbers of Texas westward into the High Plains of
Texas and eastern New Mexico. In earlier-planted areas
of the Coastal Bend and south Texas, sorghums are in
the boot stage, and recent open weather in north and
eastern Texas was favorable to the development of feed,
although some feed crops have poor stands and color.

Revised estimates place the 1957 cotton crop in the
District states at 5,242,000 bales of 500 pounds gross
weight, or 6 percent below the 1956 outturn. The value
of lint and seed is estimated to be $846,564,000, compared with $991,685,000 for the 1956 crop. A smaller
output, as well as lower prices, accounted for the
reduction.
Total deposits at weekly reporting member banks in the Eleventh District declined $87 .8
mj}}ion in the 5 weeks ended
May 21. Gross loans were down
$88 .2 million, while the banks acquired $21.6 million
of investments. In the comparable period a year ago,
the deposit decline at these banks was almost double
this year's deposit outflow, and the banks increased
their loans and liquidated investments.

Spring vegetable harvest continues active in commercial areas of south Texas and the Lower Valley. Tomatoes, sweet corn, carrots, squash, cucumbers, and snap
beans are being shipped; and harvesting of onions is well
advanced. Watermelons in early south Texas areas are
developing rapidly; but in northeastern sections of the
State, considerable replanting was necessary as a result
of heavy losses from rain and hail.

The reduction in interbank credits accounted for
nearly three-fourths of the 5-week loan liquidation.
The total volume of such credits reflects day-to-day
variations in reserve positions and, hence, is the most
volatile of the loan accounts. In the remaining categories, commercial and industrial firms reduced borrowings by $23.8 million; however, total business loans
were above the year-earlier level. "All other loans"
Rescue grasses and clovers in the eastern par~ of the - principally loans to finance consumer spendingDistrict are maturing rapidly as a result of high temp- declined $10 million during the 5 weeks, contrasted
eratures. Pastures generally remain in good condition with a $3 million gain at the same time last year. Loans
throughout most of the District, although in the Trans- secured by real estate expanded $8.8 million, while
Pecos area and south Texas, moisture is needed to main·· securities loans reflected a smaller gain.
tain the development of summer forage. Range feed
The increase in investment accounts resulted largely
conditions in all of the District states as of May 1 were
from the $19.9 million expansion of "other securities,"
better than those at the same time in 1957 or the 1947as holdings of Governments rose moderately. The
banks liquidated $36.2 million of Treasury bills and
COTTON ACREAGE, PRODUCTION, AND VALUE OF PRODUCTION
$11.5 million of Treasury notes, while adding nearly
Five Southwestern States and United States
$50 million to holdings of certificates and Treasury
(In thousands)
bonds. Total investment holdings have risen almost
20 percent since May 1957, with the principal gains
Bales
Acreage
Value of lint and seed
harvested
produced l
occurring in Treasury notes and Government bonds.
Area
Ari zona . ...........

Louisiana • • . . .... • ..

New Me xico . ........
Oklahoma •• • •••••••
Te )(o s. • ....•...... •

Total ...... . .... . .
United State • . . .. .•
1

1957

1956

1957

1956

1957

1956

352
440
183
540
5,905

358
562
181
715
6,200

763
348
236
263
3,632

829
58 1
301
261
3,615

$ 146,09 8
60,163
43,094
35,286
561,923

$ 152,694
105,277
58,224
43,045
632,445

7,420
13,558

8,016
15,615

5,242
10,964

5,587
13,310

$ 846,564
$ 1,853,708

$ 991,685
$2,401,489

500 pou nds gross weight .

SOURCE , United States Department of Agriculture.

The deposit drain, mainly a seasonal movement,
resulted from a $163.2 million decline in demand deposits, of which slightly more than half reflected the
outflow of interbank balances. Individual and business
accounts decreased $65.6 million, and deposits of state
and local governments rose moderately. Total deposits
BUSINESS

REVIE~

I

CONDITION STATISTICS OF WEEKLY REPORTING
ME'MBER BANKS IN LEADING CITIES
Eleventh Federal Reserve District
(In thousands of dollars)
May 21,
1958

Item

April 16,
1958

May 22,
1957

ASSETS
$ 1,500,009 $1,523,801 $1,458,084
29,023
28,931
22,693
30,501
31,996
23,284
180,060
177,669
149,381
Reol·estate loans .. ........................
211,060
202,212
191,056
10,0 28
Loans to banks •.. .........................
74,324
33,482
All other loons . ...........................
626,729
636,710
599,308
Commercial and industrial loans . . ............
Agricultural loans .... . . . . . .. .. . ...... .. ....
Loons to brokers and dealers in securities . ...••
Other loans for purchasing or carrying securities.

Gross loans . ...........................
Less reserves and unallocated charge-offs ••

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

U. S. Treasury bills ........... . . .......... ..

--2,587,410
45,293
--2,542,117
--80,218

2,675,643
44,857
2,630,786

2,477,288
42,172

--2,435,116
---

91,451
280,937
938,186
299,906

116,446
71,272
292,454
908,923
279,987

392,791
538,253
1,244
47,275
580,192
156,017

1,669,082
417,577
490,312
1,508
46,410
599,254
178,894

5,948,587

6,033,823

D emond d eposits
Individual s, partnerships, and corporations ....
United States Government. ......... ... ...
States and political subdivisions • ...........
Bonks in the United States •... .... . .. ..... .
Bonks in foreign countries . ................
C ertifled and officers' checks, etc .. .........

2,735,324
137,549
221,596
945,298
17,296
48,169

2,800,920
145,451
206,829
1,030,604
16,686
67,951

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

4, 105,232

3,922,880

Time deposits
.
Individuals, partnerships, and corporations ....
United States Government . ...............
Postal savings . . . . . . . . . . . . . . . . . . . . . . . . . .
States and political subdivisions .. ..........
Bonks in the U. S. and foreign countries ••. ...

--4,268,441
---

1,005,794
12,125
42 1
240,597
1,538

961,878
12,125
42 1
208,292
2,383

784,016
12,420
421
167, 105
7,525

U. S. Treasury certiflcates of indebtedness ......
U. S. Treasury not es ..... ...................
U. S. Government bonds (inc. gtd. obligations) .• .
Other securities . ..........................
Total investments . .. ... ..................
Cosh items in process of collection . . ..........
Balances with bonks in the United States . ......
Balances with bonks In foreign countries . . .. .. .
Currency and coin . ....................... .
Reserves with Federal Reserve Bonk .... .......
Other assets . .............................

TOTAL ASSETS .......................

--1,690,698

---

48,979
117,847
171 ,746
818,908
257,365

-4- 1, 14,845
387,437
456,082
1,687
46,226
557,169
155,268

--5,453,830

LIABILITIES AND CAPITAL

Total time deposits • . . . . . . . . . . . . . . . . . . .
Total deposits . . . . . . . . . . . . . . . . . . . . . .
Bills payable, rediscounts, etc . . ... •. .. . ... ...
All other liabiliti es . ........................
Total capital accoun's ...•..................

TOTAL LIABILITIES AND CAPiTAL .••.......

2,767,508
79,355
193,094
811,129
18,160
53,634

1, 260,475

--- --1,185,099
971,487

5,365,707
27,500
70,643
484,737

5,453,540
14,500
85,325
480,458

5,948,587

6,033,823

-----

--4,894,367
44,950
69,884
444,629

--5,453,830

RE'SERVE POSITIONS OF MEMBER BANKS
Eleventh Federal Reserve District
(Averages of daily flgures. In thousands of dollars)
April
1958

March
1958

April
1957

$553,441
545,015
8,426
1,897
6,529

$ 549,479
542,514
6,965
780
6,185

$ 561,951
555,329
6,622
11,196
-4,574

439,2 14
378,957
60,257
943
59,314

455,338
396,339
58,999
1,141
57,858

455,019
407,212
47,807
2,649
45,158

992,655
923,972
68,683
2,840
65,843

1,004,817
938,853
65,964
1,921
64,043

1,016,970
962,541
54,429
13,845
40,584

Item
RESERVE CITY BANKS
Reserve balances ..•. .............
Required reserves . ..... ....• . ....
Excess reserves . .... . ............
Borrowings . .....................
Free reserves . ... .... ...... . .....

COUNTRY BANKS
Reserve balances .... .............
Required reserves . ...............
Excess reserves . . .. ........ ... ...
Borrowings • . ... ...... .. .. . ...•..
Free reserves . .......... ... . .....

of the weekly reporting member banks on May 21 were
9.6 percent larger than on the comparable date a year
earlier, with the rate of increase for time deposits being
more rapid than that for demand deposits. Bills payable and rediscounts, totaling $27.5 million on May 21,
were $13 million more than on April 16 but were well
below the level of a year ago.
In April, Eleventh District member banks continued
to hold comfortable reserve positions, reflecting the
current monetary policy. Daily average borrowings
from the Federal Reserve Bank of Dallas, while rising
slightly during the month were substantially below
the year-earlier level, when reserve positions were under
restraint. Although the banks held lower daily average
reserve balances in April than in March this year or
April 1957, their required reserves showed an even
larger decline, as the legal reserve requirements had
been reduced by the Board of Governors on three occasions in recent months.
Gold certificate reserves of the Federal Reserve Bank
of Dallas declined $18.6 million in the 5 weeks ended
May 21, a period in which the Nation's gold stock declined $427 million. This Bank's earning assets rose
$17 million, reflecting increases in Treasury bill holdings and member bank discounts. Federal Reserve notes
in actual circulation decreased fractionally in the 5
weeks but showed a year-to-year gain of 4.6 percent.
The Federal Reserve Bank of Dallas reduced its discount rate from 2% percent to 1% percent, effective
May 9, thus joining the other 11 Reserve banks at this
lower level.
By mid-May, the petroleum industry had substantially improved its supply and demand relationship, primarily through
cutbacks in production. Product
and crude stocks east of the Pacific Coast were reduced
to slightly below year-earlier levels. Because of the seasonal increase in automobile use and farm field work,
demand for gasoline was brisk during the 5 weeks ended
May 16 and showed a slight year-to-year. gain. However, total demand for petroleum products was moderately under the comparable period of 1957, resulting
largely from abnormal exports a year ago.

MEMBER BANKS
Reserve balances ..•. .. , ..........
Required reserves . ...............
Excess reserves . .. . ..............
Borrowings . . ....................
Free reserves . .......... . .... ....

BUSINESS REVIEW

10

District crude oil production in the first half of May,
at 2,564,000 barrels daily, was somewhat below the
April level and was 28 percent less than in May 1957.

National production recorded a year-to-year decline of
16 percent. The Texas Railroad Commission has
adopted an 8-day producing schedule for June - the
third successive month at this record-low level, although
allowables have been raised 42,603 barrels daily. New
Mexico allow abIes have been reduced slightly.
Total imports, averaging 1,440,000 barrels daily in
the 5 weeks ended May 16, were slightly below the level
in the prior 5-week period but were 3 percent above the
flow a year earlier. The total supply of crude oil in early
May remained below demand; therefore, crude stocks
in the Nation declined somewhat to reach 274,032,000
barrels on May 10, or 5 percent more than a year ago.
However, crude stocks of District origin were 2 percent
less than the level of last year.
District crude runs to refinery stills averaged
1,975,000 barrels per day in the first part of May,
reflecting a 4-percent reduction from April 'and a yearto-year decline of 12 percent. Nationally, refinery operations were 8 percent below a year ago. Product inventories showed a seasonal I-percent gain in early May
to total 358,887,000 barrels on May 16, or 4 percent
above the year-earlier level. However, all of the year-toyear increment was still concentrated on the West
Cqast. Reflecting sharply increased demand, gasoline
stocks dropped steadily in the first half of May to reach
198,307,000 barrels on May 16, or only 1 percent
higher than the level a year ago. Consequently, wholesale gasoline prices were firming at mid-May, although
retail prices had been reduced in several cities.
Employment of nonagricultural
workers in the District states rose
in April to 4,240,300, but the
increase of 5,200 over March
was considerably less than the
normal seasonal gain. Providing most of this month-tomonth increase was hiring in services, construction,
and government. The decline in industrial employment
continued, with new reductions in output and employment reported in both April and May for transportation equipment manufacturing, primary metals production, and copper mining.
Unemployment in Texas declined by 1,000 workers
from March to April to reach 199,400 - or 5.6 percent of the labor force, which compares with a rate of
7.5 percent in the Nation. Moreover, the number of
workers claiming unemployment insurance payments

in Texas turned downward from a record 91,328 in
mid-April to a level of 86,528 in the week ended
May 15, representing a decline of 5.3 percent, compared with a 4.5-percent reduction in the corresponding period of 1957.
Construction contract awards in the District states
during March, at $310.7 million, were substantially
above the February level but reflected a 19-percent decline from a year earlier - a worsening of the year-toyear comparison. This decrease stemmed from a yearto-year loss of 31 percent in nonresidential contracts,
as residential awards rose 11 percent above March
1957. The largest single award during the month was
a $10 million contract for a refinery in the BeaumontPort Arthur area.
The March awards data give support to other indications of a pickup in home-building activity. In terms
of dwelling units, March contract awards provided for
a 27-percent gain over a year earlier in Texas; a previous report had shown that new FHA home applications in Texas were up sharply in March from the same
month in 1957 . VA appraisal requests also have shown
gains, especially since the new housing law became effective April 1. Southern pine new orders, which had
averaged 15 percent below the year-earlier level during
March, rose during April to about 7 percent above a
year ago. Scattered reports over the District reflect further improvement in home construction in April, and
the Texas Contractor reports that residential awards
led the April construction awards total in Texas to a
28-percent increase over April 1957. Recent contacts
with mortgage bankers indicate that funds are available to support a substantial increase in home building
and that interest rates on mortgage loans have softened.
NONAGRICULTURAL EMPLOYMENT

Five Southwestern Stotes'
Percent change

___
N_um_b_er_o_f:.....pe_rs_on_._ _ _ Apr. 1958 from
Type of em ployment

April
1958

Total nonagricultural
wage and salary workers ..

4,240,300
736,600
Nonmanufocturlng . ... .... 3,503,700
242,000
Mining ........ .. . . ...
293,300
Construction . ..........

Manufacturing . ..........

Transportation and

390,600
public utilltie •. ..... ..
Trad e . ............... 1,115,100
188,400
Finance ..•. ...•....•..
525,000
Service . ..............
749,300
Government • ..........
1

March
1958

April
1957r

March
1958

April
1957

4,235,100
742,300
3,492,800
245, 100
285,300

4,274,400
773,500
3,500,900
26 1, 200
294,100

0.1
- .8
.3
-1.3
2.8

-0.8
-4.8
.1
-7.4
-.3

393,700
1,11 5,900
187, 200
518,900
746,700

405,700
1,114,000
181,700
513,200
731,000

-.8
-.1
.6
1.1
.3

-3.7
.1
3.7
2.3
2.5

Arizona, louisiana, New Mexico, Oklahoma, and Texas.

r -

Revised.

SOURCE, State employment ag encie •.

BUSINESS REVIEW
11

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

CONDITION STATISTICS OF ALL MEMBER BANKS

Eleventh Federal Reserve District

(Dollar amounts in thousands)

(In millions of dollars)
Debits to demand
deposit accounts l

Demand deposits!

Percentage
change from

April
1958

Area

Mar. April
1958 1957

Annual rote of turnover

April 30,
1958

Ap r. 30,
1958

Ite m

April Mar. April
1958 1958 1957

ARIZONA
Tucson .............. $ 178,751
LOUISIANA
65,857
Monroe ......•......
263,951
Shreveport •••..•••.•
NEW MEXICO
31,214
Roswe ll .............
TEXAS
82,140
Abilene ..... .. ......
180, 127
Amarillo ......... .. .
176,198
Austin .....•........
142,565
Beaumont •.. . •.••.••
175,210
Corpus Christi ... .... .
14,489
Corsicana ••••.•...•.
Dallas .............. 2,167,584
291,598
EI Paso ... . . ........
680,496
Fort Worth ..........
84,958
Galveston . .... .. ....
2,231,873
Houston ••••...•..•.
25,767
laredo .............
141,072
Lubbock ............
65,276
Port Arthur ..........
47,717
San Angelo .........
548,324
Son Antonio .. .......
19,161
Texarkana 2 •••••• • ••
78,643
Tyler .... .... .......
91,643
Waco ...... .. ......
95,400
Wichita Falls ........

-5
-1
-8
-6
-4
0
-1
0
2
2
-2
2
-6
-1
7
9
3
2
-1
1

-3
5
0
-10
-7
-5
-3
6
-3
-8
-4
7
4
-7
3
10
1
-2
4
-7

58,779
109,042
132,050
109,000
112,931
21,102
1,019,560
158,642
364,242
66,543
1,206,603
21,107
104,639
44,502
40,167
346,482
15,939
60,028
65,722
102,605

16.6
19.9
16.0
15.7
19.0
8.2
25.7
22.3
22.3
15.0
22.4
14.6
16.2
17.5
14.0
19.0
14.0
15.6
16.8
11.2

17.3
20.2
17.9
16.8
20.0
8.2
26.4
22.8
22.3
14.6
22.9
14.2
17.2
17.4
13.0
17.5
13.6
15.4
17.3
11.0

16.8
20.2
16.7
17.9
20.0
8.0
27.6
23.4
22.7
15.7
22.8
14.4
16.3
16.7
12.2
17.8
14.4
15.5
16.6
12.0

Total-24 cities ........ $7,880,014

- 1

- 2

$4,536,014

21.0

21.2

4

$ 108,925

19.9

20.2

20.5

5
- 9

-2
3

49,806
190,069

15.6
16.9

14.4
18.4

15.0
16.0

-5

2

27,529

13.4

14.2

Apr. 24,
1957

ASSETS
$ 4,172
2,572
706
971
131
Balances with b~~k; i~ ih~ 'Un"te'd St~te's: : : : : : : : : :
1,107
Balances with banks in foreign countriese ........ .
2
Cash items in process of collection .•. ...... ..•. . .
477
Other asse tse ........ ....... ................ .
242
loans and discounts •..........................
~n~ed Stat?s Government obligations . .... ...... .
I er securities ............................. .
~~ss~rr~~:~t~eFederal Rose rve Bank ............. .

4,237
2,426
696
941
136
1,067
2
427
254

$ 3,900
2,475
635
976
121
1,005
2
448
229

!.9~

10,186

.1~.

1,097
6,367
1,962

1,081
6,326
1,844

999
6,353
1,553

Total deposits • .•. .•. .....• . .. . .......... . .
~o~owingse •......• • .. ••• .....• • ...... .••..•
er liabilitles e .. ... .•........ .. ... ........ .
otal capital accountse ....•..• . .... ..... .. . ...

9,426
31
96
827

9,251
5
108
822

8,905
35
87
764

TOTAL LIABILITIES AND CAPITALe ..•. . ... . ...

10,380

10,186

9,791

21.5

0

Mar. 26,
1958

13.4

TOTAL ASSETse .......................... .
LIABILITIES AND CAPITAL
geh'and deposits of banks .... .. .. ...... • ... . . .
T't er demand deposits ........... ...... ...... .
Ime deposits •........ •... . .• ...........•....

Tt

Estimated.

BUILDING PERMITS
VALUATION (Dollar amounts In thousonds)
Percentag e change

1

De posits of individuals, part!.lorships, and corporations and of states and political

subdivisions.
~ These figures include only one bank in Texarkana, Texa s. Total debits for all bank s
in Texarkana, Texa s· Arkan sas , including one bank located in the Eighth Di strict,

April 1958

NUMBER

omounted to $38,442,000 for the month of April 1958.

from

April
1958

Area

April
1958

1958

4 mos.

1958

4 mos. 1958
April
compo with
1958 1957 4 mos. 1957

756

4 mos.

5,264

-22

Mar.

ARIZONA
Tucson •.......

530

1,699

-53

-32

476

1,719

1,465

9,020

-49

-27

36

179
385
267
431
351
2,378
659
616
140
1,335
276
216
2,089
216
219

551
970
930
1,294
1,287
7,488
2,354
2,461
443
4,658
898
649
6,039
816
451

1,913
2,939
4,009
1,411
2,697
14,708
6,165
3,355
426
20,072
3,019
482
6,085
916
692

5,388
9,115
13,207
4,865
9,057
44,592
19,601
15,934
1,052
72,242
11.337
5,756
18,371
3,988
2,113

66
2
25
- 8
50
43
12
-24
72
-1
16
- 88
29
-36
1

-12
75
- 9
-34
75
46
153
43
27
36
30
-47
66
8
-76

6
-16
-12
- 18
71
7
72
-7
3
-11
2
206
11
-8
-62

Tota l-17 cities .• 10763

CONDITION OF THE FEDERAL RESERVE BANK OF DAllAS

34,707

$71,110

$250,902

3

27

Shreveport ....

(In thousands of doliars)

TEXAS
Abilene .•.•...

May 21,
1958

Item
Total gold certificate reserves ••••...........
Discounts for member banks •..... . .• . ... ...
Other discounts and advances ......•.......
U. S. Government securities ....... ... ..... . .
Total earning asse ts ..... . .... .... . .. . . ... .
Member bank reserve deposits•••..... .. .. . .
Federal Reserve notes in actual circulation ••...

April 16,
1958

May 22,
1957

$767,533
8,000

$786,168
400

937,880
945,880
968,381
710,342

928,508
928,908
978,584
710,707

$705,3.68
44,100
1,040
897,250
942,390
953,775
679,354

o

o

Amarillo .•....
Austin •.......
Beaumont ... "

Corpus Christi ..
Dallas .. . .....
EI Paso . . ... . .
Fort Worth ....
Galveston •••..
Houston .•....

Lubbock ......
Port Arthur ....
San Antonio . • .
Waco ••.....•

Wichita Falls ..

CRUDE OIL: DAILY AVERAGE PRODUCTION

$

LOUISIANA

(In thousands of barrels)
Change from
Area

ELEVENTH DISTRICT. .......
Texas ..•.....•.........

Gulf Coast •••...••.•..
West Texas ...........

East Texas (prope r) .....
Panhandle .... .. .... . .
Rest of State ..........
Southeastern New Mexico •.
Northern Louisiana ..•.....

OUTSIDE ELEVENTH DISTRICT.
UNITED STATES ............
SOURCES:

1

March

1958'

April
1957 '

1958

2,666.2
2,295.6
459.4
933.4
124.6
107.7
670.5
256.7
114.0
3,609.0
6,275.2

3,614.0
3,220.2
636.8
1,389.8
221.9
106.2
865.5
258.5
135.3
3,927.0
7,541 .0

-74.8
-71.5
-13.2
-40.8
-7.2
.0
-10.3
-5.0
1.6
40.1
-34.7

-1,022.6
-996.1
-190.6
-497.2
-104.5
1.5
-205.3
-6.8
-19.7
-277.9
-1,300.5

March

2,591.4
2,224 .1
446.2
892 .6
117.4
107.7
660.2
251.7
115.6
3,649.1
6,240.5

Estimat ed from American Pe troleum Institute weekly reports.

" United States 8ureau of Mines.

BUSINESS REVIEW

12

VALUE OF CONSTRUCTION CONTRACTS AWARDED

April
1957

April
1958'

(In thousands of doliors)

Area and type

Morch
1958

Fe bruary

FIVE SOUTHWESTERN
STATES' ........... $ 310,656 $ 242,843
Resid ential .........
122.317
108,115
All other ...........
188,339
134,728
UNITED STATES .. ... .. 2,721,228 1,953,422
Resid ~ntial. ..•... •• 1,070,556
727,282
All other ........... 1,650,672 1,226,140
1

Arizona, louisiana, New Mexico

March
1957

1958

Oklahoma

SOURCE , F. W. Dodge Corporatl~n.

January-March

1958

1957

384,927 $ 785,284 $ 892,688
110, 192
331,751
338,615
274,735
453,533
554,073
3,077,997 6,740,709 7,538,560
1,107.288 2,575,261
2,799,340
1,970,709 4,165,448 4,739,220
,an

d T

exas.