Full text of Review (Federal Reserve Bank of Dallas) : June 1969
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rev.em
june 1969
FEDERAl!. RESERVE
BANK OF DALLAS
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
contents
profits surge at district
member banks in 1968 . . . . . . . . . . . . . . . . . . . . ..
3
member bank trust operations . . . . . . . . . . . . . . ..
7
district highlights . . . . . . . . . . . . . . . . . . . . . . . . . .. 13
p,-o/its surge at
dist,-ict me,nbe,banks in 1968
The year 1968 was one of superlatives in the
profit position of member banks in the Eleventh
Federal Reserve District. Net current operating
earnings advanced to a level of $269.6 million
and rose 16.5 percent over the previous year,
the largest year-to-year increase since 1960.
Moreover, net income after taxes reached
$153.0 million, up 17.7 percent from 1967.
The percentage gains in both net current operating earnings and net income were more
than double their respective average annual
gains for the preceding 8 years.
more than half again as large as tlle annual
increase for the years 1960-67. Loan growth,
stimulated by a surging economy both locally
and nationally, was especially striking. Total
loans (net of valuation reserves) rose 14.3 percent, which is more than 50 percent above the
increase in 1967.
The large increase in earnings at the District's member banks in 1968 reflected very
rapid advances in deposits and earning assets
and record interest rate levels. Total deposits
Showed a sharp rise of 10.7 pet'cent, or roughly
double the average annual percentage increase
of the 1960-67 period. Substantial gains occurred in both demand and time deposits, but
the gain in time deposits, spurred by higher
VOlumes of both business- and consumer-type
certificates of deposit, was particularly noticeable. The large certificates of deposit (those
issued in denominations of $100,000 or more)
reached a record level of over $1.6 billion at
the District's major banks in late 1968. In
addition, the District's member banks, especiaUy the larger ones, markedly increased their
Use of borrowed funds, principally purchases
of Federal funds.
CHANGES IN MAJOR MEMBER BANK
INCOME AND EXPENSE CATEGORIES
The large rise in loans was spurred by heavy
business loan demand during much of the year.
Loans to financial institutions and real estate
Eleventh Federal Reserve District
CURRENT
OPERATING
REVENUE
CURRENT
OPERATING
EXPENSES
NET CURRENT
OPERATING
EARNINGS
NET INCOME
With the rapid advances in deposits, the District's member banks expanded their holdings
of earning assets substantially. Total loans and
investments rose over 12 percent, only slightly
above the increase in tlle previous year but
busilless review/june 1969
3
loans also showed large gains. Loans under
credit-card and check-credit programs, only
recently becoming important at the District's
banks, almost doubled from the year-earlier
level, with most of the expansion occurring in
loans under credit-card plans. The growth in
credit-card and check-credit programs last year
was more pronounced at the smaller banks.
GROWTH IN SELECTED MEMBER BANK
BALANCE SHEET ITEMS
Eleventh Federal Reserve District
DEPOSITS
LOANS
INVESTMENTS
LOANS AND
INVESTMENTS
The ability of the District's member banks to
meet the heavy loan demand last year without
reducing investment holdings is particularly
significant and reflects the rapid inflow of deposits. In fact, the banks increased their investment portfolio by almost 9 percent. Holdings of
U.S. Government obligations showed only a
small gain, but municipal holdings rose almost
one-fifth at the District member banks as a
group and even more rapidly at the larger
4
banks. Municipal holdings have grown very
sharply in recent years and are now roughly
equal to the portfolio of U.S. Government
securities.
Interest rate levels, which were already high
when 1968 began, advanced to new records
during the year, contributing to the gain in the
revenue of District member banks. The average
return on loans at these banks rose once again
in 1968. A major factor in the increase in the
average return on loans was the heavy loan
demand last year, which, in turn, brought about
a number of increases in the prime rate. Similarly, the average return on securities, both
Government and non-Government, rose markedly. The high and rising interest rates also, of
course, added substantially to the banks' interest payments on time deposits.
revenue
Total current operating revenue at Eleventh
District member banks in 1968 surpassed $1
billion for the first time and was about 17 percent above the previous year. The percentage
gain in this revenue far exceeded the increase
for 1967 and was almost double the average
annual increase in the 1960-67 period . The advance in total current operating revenue was
more pronounced at the larger banks in the
District, as the rise in earning assets was greater
at these banks than at the smaller banks. Loan
revenue expanded sharply in 1968, increasing
16.9 percent for all member banks in the District, which is considerably above tlle increase
of 9.8 percent a year earlier. Interest and discount on loans rose almost one-futh at the
larger banks, or more than double the percentage gain in 1967.
With the rapid increase in loan revenue, interest and discount on loans amounted to about
two-thirds of total current operating revenue.
At the larger banks, which generally have
higher ratios of loans to earning assets, loan
revenue accounted for almost th ree-fourths of
total current operating revenue.
INCOME AND DIVIDENDS OF MEMBER BANKS, 1968
Eleventh Federal Reserve District
(Doll ar amounts in millions)
ALL MEMBER BANKS
Percent
increase
over
1968
1967
Current operating revenue:
Interest and dividends on:
U.S. Government obligation s
Oth er securities .. .. .. ..... . . . . . . . . . .
Interest an d discount on loa ns ............
Service cha rges on loans . ... .... . ..... . . .
Service charges on deposit accounts .... . ..
Oth er serv ice charges . .. . .
. . .. . ... .
Trust department revenue .... .. .. . ... .. ..
All other revenue .................... .. . .
$ 121.2
101.1
697.9
12.5
41.5
17.2
27.0
16.9
.... .. ...
Current operating expenses:
Salaries - officers .............. . . . .. . .•
Salaries and wages - employees ..... . ...
Officer and emp loyee benefits .... . .. . .. . ..
Directo rs' fees, etc ................... . ..
Int erest on time and sav ings deposits .. . ...
Interest and discount on borrowed money . . .
Net occupancy expe nse of bank premises ..
Furniture and equipment . .......... . ... . .
All other expenses . . ....... . . .... ........
Reserve city banks
Percent
change
from
Country banks
Percent
increase
ove r
1968
1967
1968
1967
14.8
20.1
16.9
52.4
11.9
17.8
14.4
31.0
$ 40 .9
40.7
317.7
7.4
6.8
9.2
19.7
6.5
8 .8
15.0
18.7
68.2
11 .5
17.9
18.0
25.0
$ 80.3
60.4
380.2
5.1
34.6
7.9
7.3
10.5
18.3
23.8
15.5
34.2
11.6
16.2
5.8
34.6
1,035.2
17.2
448.8
17.8
586.4
16.8
83.1
109.5
25 .3
5.5
328.9
29.3
33.6
27 .5
122.8
8.8
12.8
11.9
5.8
20.4
66.5
7.3
21.7
16.3
23.9
43.1
11.0
.6
143.4
25.8
7.2
11.4
51.9
9.1
14.3
12.2
.0
15.6
69.7
.0
28.0
18.0
59.2
66 .4
14.4
5.0
185.5
3.5
26.4
16.0
70.9
8.6
11.8
12.5
8.7
24.4
45.8
9.5
16.8
15.1
Net current operating earnings ....... . . • • .. .
Nonoperating losses (net) .. .. . .. . .. . . . . . .. .
765.6
269.6
51.1
17.5
16.5
4.5
318.3
130.6
16.2
18.2
16.8
-21.7
447.3
139.1
34.8
17.0
16.0
23.8
Net income before related taxes ... . ... . .•. . .
Ta xes on net income ............ . ...... . .•.
218.6
65.6
19.6
24.5
114.3
38.4
25.7
31.1
104.2
27.2
13.5
16.7
Net income ........ . . . .. ... •. . .. . ..... .. ..
Dividends on capital . .. .. ... . ... . . ...
153.0
78.1
17.7
20.9
75.9
49.4
23.2
30.3
77.0
28 .7
12.4
7.5
Item
.
.
Total current operating revenue
Total current operating expenses ........
NOTE. -
Detai ls may not add to totals because of rounding.
Interest and dividends on security holdings
rose sharply once again at the District's member banks in 1968. On non-Government security holdings at aU member banks, interest and
dividends increased about one-fifth over the
previous year. Interest on U.S. Government
securities also advanced over 1967 but at the
somewhat slower rate of 14.8 percent.
Other sources of revenue at the District's
lUember banks showed varying patterns of
growth. Service charges on loans, although providing only $12.5 million in revenue, rose about
oue-half over 1967, as compared with only a
slUall increase in the prior year. The rapid rise
in service charges on loans was concentrated at
the larger banks and probably reflects not only
the increase in loan volume but also borrower
payments for short-term loan commitment fees
and other charges, especially on interim construction financing.
expenses
Total current operating expenses at the District's member banks rose substantially - 17.5
percent - during 1968, reaching $765.6 million. The rate of increase of these expenses was
more rapid in 1968 than in any other year of
this decade and, in fact, was about one-half
greater than the average increase of the 196067 period.
Interest payments on time and savings deposits, which have grown sharply in recent
years, advanced to a level of $328.9 million,
or more than two-fifths of total current operating expenses. Just 10 years earlier, interest payments on time and savings deposits accounted
business review/june 1969
5
for less than one-fifth of total current operating
expenses. These interest payments increased
20.4 percent from the previous year, reflecting
the larger amounts of time and savings deposits,
a shift in the distribution of time deposits toward the higher-yielding types of deposits, and
the higher rates paid on the deposits.
Wage and salary payments were $192.6 million in 1968, reflecting an increase of more than
one-tenth over 1967 and a somewhat more
rapid advance than a year earlier. A larger work
force and the continuation of tight labor market conditions contributed to the substantial
increase in wage and salary payments. Payments to employees, particularly at the larger
banks, rose considerably more rapidly than
payments to officers. Nonsalary benefits, which
have advanced quickly in recent years, continued to increase in 1968. Officer and employee benefits amounted to $25 .3 million, up
11.9 percent from the previous year.
Current operating expenses other than the
compensation of employees and officers and the
interest payments on time and savings deposits
reached a level of $218.7 million, or almost
20 percent more than in 1967. The most
noticeable advance in these other expenseswhich include directors' fees, interest and discount on borrowed money, the net occupancy
expense of bank premises, furniture and equipment expenditures, and "all other expenses" occurred in payments for borrowed money.
These payments amounted to $29.3 million,
reflecting an increase of about two-thirds over
the previous year; and virtually all of the increase was accounted for by the larger banks.
However, expenditures on furniture and equipment also rose sharply, expanding 21.7 percent
for all member banks in the District and 28.0
percent for the larger banks.
nonoperating transactions
Nonoperating transactions generally result in
a significant reduction in the earnings of commercial banks. These nonoperating transactions
6
reflect ( 1 ) profits on securities sold or redeemed, recoveries, and transfers from valuation reserves and (2) losses, charge-offs, and
transfers to valuation reserves. Nonoperating
transactions lowered earnings by $51.1 million
in 1968 at Eleventh District member banks.
With higher market interest rates, losses on securities sold or redeemed advanced, and profits
on securities sold or redeemed declined. These
changes were partially offset, however, by an
increase in transfers from valuation reserves
and a decrease in charge-offs on loans, both of
which raise net income.
Nonoperating reductions in earnings were
concentrated at the smaller banks, where such
reductions amounted to $34.8 million, up 23 .8
percent from 1967. At the larger banks, nonoperating transactions lowered earnings by
$16.2 million, or 21. 7 percent less than in
1967.
net income after taxes
Reflecting the higher earnings and also the
impact of the income tax surcharge, Eleventh
District member banks increased thei r provision
for income taxes considerably last year. Provision for taxes on net income amounted to $65.6
million in 1968, or 24.5 percent above the previous year. The increase in the allocation for
income taxes was particularly substantial at the
larger banks, where the tax allocations rose
31.1 percent to a level of $38.4 million.
As a result of the changes in operating revenue, operating expenses, nonoperating losses,
and income taxes, net income after taxes
amounted to $153.0 million in 1968 and was
17.7 percent more than in the preceding yearthe largest year-to-year increase since 1960.
The increase in net income after taxes was especially noticeable at the larger banks, where net
income rose more than one-fifth . The rapid increase in member bank net income after taxeS
resulted in a substantial rise ill the ratio of net
income after taxes to total capital accounts,
with this ratio advancing from 8.7 percent in
1967 to 9.6 percent in 1968. A smaller increase
occurred in the ratio of net profits after taxes to
total assets, since total assets showed a large
rise over 1967.
Cash dividends declared by Eleventh District
member banks rose 20.9 percent during 1968,
representing 51 percent of total net income.
The gain in dividends declared was particularly
sharp at the larger banks, where dividends rose
30.3 percent and amounted to almost two-thirds
of net income. In contrast, at the District's
smaller banks, cash dividends declared rose
only 7.5 percent and accounted for less than
two-fifths of net income.
DONALD R. FRASER
t,·ust operations
Income from trust operations at member
banks in the Eleventh Federal Reserve District
Surged upward in 1968, as indicated in the
recent survey of District trust departments. Net
income before taxes from trust operations at
the 59 member banks participating in the survey reached 4.7 percent of total trust revenue
in 1968. When deposit credits amounting to
24.4 percent of gross income are included,
however, trust department net earnings represented 29.1 percent of total revenue last year,
SUbstantially above the 22.5-percent figure recorded for 1967.
The Federal Reserve Bank of Dallas, in cooperation with the Trust Section of the Texas
Bankers Association, has surveyed the trust
operations of selected District member banks
each year since 1957. The survey covering trust
department operations for 1968 included detailed information from 59 member banks,
Which accounted for $25 million of total trust
revenue, or about 92 percent of the trust inCome of all member banks in the Eleventh
bistrict.
Trust departments at commercial banks provide a wide variety of services for both individuals and corporations. Trust services for individuals include guardianships established for
estates, testamentary trusts established by the
wHIs of deceased individuals, trusts for nonprofit institutions and employee pension and
profit-sharing funds, and trusts created for special purposes, such as trusteeships in bankruptcy. Trust departments serve corporations
by acting as trustees to service mortgages and
other corporate debt and by performing numerous agency functions, including depositaryships, registrarships, stock transfers, dividend
disbursement, and coupon and bond payment.
The high degree of skill and specialization
required in perfOlming these functions makes
the profitability of fiduciary operations heavily
dependent on a large dollar volume of trusts.
Consequently, the larger banks in the District,
particularly those located in financial centers
frequently record more profitable operation~
than do smaller banks, although important exceptions occur. Moreover, trust activity in the
business review/ june 1969
7
TRUST DEPARTMENT REVENUE
AT MEMBER BANKS
fiduciary operations. For example, the 16 departments having revenue of $300,000 or more
displayed the highest proportion of income
from corporate accounts - 17.5 percent. In
contrast, the 11 trust departments with revenue
between $100,000 and $200,000 reported the
largest proportion of income from personal accounts - 97.5 percent. The smallest trust departments, those Witll $10,000 to $50,000 in
revenue, received 91.6 percent of their income
from personal accounts.
( 1958 = IOO )
PER CE NT
350
300
250
ELEVENTH FEDERAL
RESERVE DISTRICT
200
150
UNITED STATES
100
1958
1960
1962
1964
1966
1968
SOURCES : Board of Gov e rnor s. Fe d eral Rese rv e Sy s t e m ,
Fe d e ral Rese rv e Bank of Dall as .
Eleventh District, as well as in the Nation, tends
to be concentrated at the larger trust departments. For example, almost 63 percent of trust
revenue at the surveyed banks in 1968 was
earned by 8 large banks, while the 16 banks
with trust commissions and fees in excess of
$300,000 accounted for more than 80 percent
of total trust department income.
revenue
As in previous years, earnings from personal
accounts (which include living and testamentary trusts, estates, guardianships, and pension
and profit-sharing trusts) supplied the bulk of
trust department income at District banks in
1968. About 85 percent of total trust revenue
at the 59 surveyed banks came from these accounts. Corporate accounts, including trusteeships, depositaryships, and other agency functions, supplied the remaining 15 percent of
trust revenue.
The relative importance of corporate and
personal accounts at member bank trust departments varies significantly with the size of
8
Survey results from tlle 52 banks which reported in both tlle 1967 and tlle 1968 surveys
show that these banks recorded a 16.2-percent
gain in trust department income last year. All
categories of trust accounts at the 52 banks
displayed substantial increases in revenue, wifu
the greatest percentage gains generally occurring at the largest banks. On the other hand,
trust department income at banks with fue
smallest operations - those with trust commissions and fees between $10,000 and $50,000actually declined 2.6 percent.
The prime importance of personal accounts
in the fiduciary operations of the 52 banks is
reflected in the fact that these accounts contribSOURCES OF TRUST DEPARTMENT REVENUE
AT 59 MEMBER BANKS, 1968
Eleventh Federal Reserve District
INTRABANK CREDITS
1.
CORPORATE TRUSTS 2 . 4 % ::-1~======~
PENSION AND PROFIT-SHARING
11.2 %
TRUSTS
PERSONAL AGENCIES
12 . 0 %
CORPORATE AGENCIES
12.5%
ESTATES
17.7 %
PERSONAL TRUSTS
PERCENTAGE CHANGES IN TRUST DEPARTMENT REVENUE
AT 52 MEMBER BANKS,' 1968 FROM 1967
Eleventh Federa l Reserve District
52 banks with 1968 trust revenue of:
$50,000·
$100,000·
$200,000·
$100,000
$200,000
$300,000
Item
$10,000·
$50;000
Number of banks
13
6
10
Commissions and fees from:
Estates
Pe rsona I . tr'ust~ .
Pe nsion and proflt'sha ring trusts
Personal agenci es
Pe rsonal intrabank credits
Total pe rsonal accounts ...
Corporate trusts ... .
... . . .. . .
Corporate agencies . ... .. .
Corporate intra bank credits
Tota l corporate accounts
All accounts , ... , ......
-47.7
2.6
41.5
9 2. 3
19.1
-3.5
65 .1
29.7
-1.6
23.9
- 2.6
-6.8
29.2
37.2
-28.0
19.7
10.2
-15.4
-5.0
- 60.5
- 17.3
8.1
5.7
16.3
30.0
12.1
10.5
13.5
49.2
-24.2
6.4
-12.7
12.6
"
t
Over
$300,000
Tota l
8
15
52
42 .1
15.0
18.3
-11 .5
52.3
15.6
20.3
1.8
-8.2
6.0
14.9
22 .6
10.3
23.7
17.8
-1.2
15.5
21.6
29.6
14.0
27.7
17.3
19.3
11.4
23 .8
14.1
9.1
14.8
21.9
27.0
1.5
25.3
16.2
Banks which reported in both the 1967 and the 1968 surveys.
uted more than 86 percent of total trust revenue
and were responsible for almost 80 percent of
the increase in revenue during 1968. The largest
banks, those with commissions and fees exceeding $300,000, accounted for the bulk of the
dollar gain in personal account revenue. In percentage terms, the banks with earned commissions and fees of $200,000 to $300,000 showed
the most rapid growth in income from personal
accounts, with a 15.6-percent increase. In contrast, the smallest trust departments experienced a 3.5-percent decline in revenue from
personal accounts, due to a 47.7-percent deCrease in commissions and fees from estates (a
relatively volatile source of income).
For the 52 banks as a group, increased revenue from every type of personal trust service
Contributed to the growth of income from persOnal accounts in 1968. The largest dolJar increase, however, was provided by personal
trusts, which recorded a $1 .1 million, or 11.4percent, advance in revenue. Moreover, personal trusts accounted for almost 43 percent of
tOtal trust income at all surveyed banks in 1968.
As in past years, income from pension and
profit-sharing trusts showed the most rapid
percentage gain of all personal accounts, ex-
panding 23.8 percent. Revenue from estates
rose a strong 19.3 percent in 1968, while commissions and fees from personal agency accounts advanced 14.1 percent.
Corporate agency accounts provided almost
80 percent of total corporate account revenue
at the 52 banks. Agency income increased
$564,000, or 27 percent, in 1968. Revenue
from corporate trust accounts also advanced
rapidly, rising almost 22 percent. In general,
corporate agency and trust accounts are concentrated at large banks in major financial centers. However, even the smalJest trust departments (with commissions and fees of $10,000
to $50,000) have experienced a rapid increase
in corporate account revenue in recent years.
In 1968, income from corporate accounts rose
almost 24 percent at these small trust departments.
expenses
One of the most difficult problems in a meaningful analysis of trust department operating
data concerns the proper alJocation of expenses.
Trust departments are frequently staffed by
personnel who also perform duties for other
bank departments. If the actual costs of trust
business review/june 1969
9
operations are to be measured accurately, careful allocation of the salary expenses for such
personnel must be made. Similarly, certain fiduciary services are often performed by other
administrative and operating departments of the
bank -- e.g., the investment, mortgage, real
estate, and accounting departments. A proper
share of the total expenses of such departments,
based on the amount of work performed, should
be charged to the trust department. By the same
token, the trust department should receive
credit for the functions it performs for other
departments in the bank.
DISTRIBUTION OF TRUST DEPARTMENT
EXPENSES AT 59 MEMBER BANKS, 1968
Eleventh Federal Reserve District
OTHER EMPLOYMENT EXPENSES
The major expense item in providing trust
services is employment costs (salaries, wages,
and related expenses). For the 59 member
banks participating in the 1968 survey, these
costs amounted to almost 60 percent of total
expenses. Nevertheless, the relative importance
of employment costs varied with the size of
fiduciary operations. In the smallest trust departments, for example, salaries, wages, and
7.4 %
~------~----~
OVERHEAD
13.7 %
EMPLOYEES' SALARIES
AND WAGES
26.1%
OFFICERS' SALARIES
26.4%
ALL OTHER DIRECT EXPENSES
26.4%
other employment costs represented almost 70
percent of total expenses. On the other hand,
employment costs in the largest trust departments -- those receiving total commissions and
PERCENTAGE CHANGES IN TRUST DEPARTMENT EXPENSES
AT 52 MEMBER BANKS; 1968 FROM 1967
Eleventh Federal Reserve District
$10,000·
$50,000
52 banks with 1968 trust revenue of:
$50,000·
$100,000·
$200,000·
$100,000
$200,000
$300,000
$300,000
Total
Number of banks
13
6
10
8
15
52
Sala ries and wages:
Officers
. . . . . . ....... .. .
Employees .
. .. ..•... ..
Pensions and retirements .
Personnel insurance
Other expenses related to salaries ..
Occupancy of quarters
Furniture and equipment ... . .. .
Stationery, supplies, and postage .
Telephone and telegraph ... .
Advertising ........ . .......... . .
Directors' and trust committee fees .
Lega l and professional fees .
Periodicals and investment services ..
Examinations ............. . .... .
Data processing . ...... .
Other direct expenses .. .
Total direct expenses
Overhead . ........ .
18.8
26.9
34.3
19.3
20.3
-3.4
88.1
60.1
12.3
2.9
22.1
-17.8
.7
-9.8
6.1
17.5
19.6
15.1
13.9
42.5
55.8
45.6
.6
8.2
51.0
45.4
12.3
114.8
27.4
10.0
2.9
27.9
5.1
-6.6
7.8
16.0
44.5
-11.9
-1.7
23.6
-4.0
33.0
47.2
-12.5
245.6
68.4
12.7
9.7
12.6
10.3
12.4
7.3
20.1
16.6
2.2
-30.8
-6.9
58.4
-41.8
1.6
82.2
20.1
-2.0
37 .9
22.3
9.6
5.4
9.1
11.3
17.5
13.5
5.1
18.6
4.2
4.7
39.9
29.3
41.4
33.7
11.9
7.2
-3.1
48.1
-.5
17.0
25.3
18.2
10.8
18.1
13.9
6.5
17.4
4.6
5.4
34.0
27.5
31.9
15.9
15.5
11.6
-4.9
48.1
3.7
16.3
22.9
17.2
Item
Total expenses
1
10
19.1
17.5
-13.5
75.0
16.9
24.8
-5.8
21.8
Banks which reported in both the 1967 and the 1968 surveys.
Over
fees of over $300,000 cent of total expenses.
averaged only 58 per-
Officers' salaries and the salaries and wages
of nonadministrative personnel generally accounted for about the same proportion of
member bank trust expenses. There are, however, significant differences between large and
small banks. Officers' salaries often account for
a greater share of total expenses in sman trust
operations than in the larger ones. Part of the
explanation for this relationship stems from the
greater importance of corporate trust accounts
in the larger departments. These accounts reqUire much less officer supervision since a large
proportion of the tasks required to service corporate accounts are routine or clerical in nature.
In contrast, personal accounts tend to re~uire
the attention of management personnel skilled
in questions of law, taxation, and investments.
As a result, officers' salaries represent a large
share of operating costs at smaller trust departll1ents, where personal accounts frequently contribute 90 to 95 percent of total trust revenue.
In 1968 officers' salaries averaged about 37
percent of' total expenses for the smallest trust
operations and only about 24 percent for the
largest. Salaries and wages of nonadministrative
personnel ranged from 21 percent of total expenses at the smallest trust departments to
about 26 percent at trust departments receiving
Commissions and fees of over $300,000.
Total expenses at the 52 trust departments
reporting for both 1967 and 1968 increased
about 17 percent last year to a level Of. $2~ .8
ll1illion. All expense items except examlllatlOn
fees contributed to the total advance. Direct
expenses increased about 16 percent, while
Overhead costs rose almost 23 percent.
The fastes t growing expense items in 1968
Were data processing, office supplies, and adVertising, the costs of which increased 48. percent, 34 percent, and 32 percent, respectively,
at the 52 banks. Sharp advances in data proceSSing costs were evident for all sizes of trust
department categories except the smallest. For
example, data processing costs rose 75 percent
at trust departments receiving commissions and
fees of $5 0,000 to $100,000 and rose almost
2 1h times at departments with income between
$100,000 and $200,000. The rapid growth of
data processing costs reflects, in part, the increasing importance of corporate trust accounts,
which are particularly amenable to handling
through machine processing.
profits
Net earnings before taxes at the 59 surveyed
banks were 4.7 percent of total revenue in
1968, compared with 4.9 percent in the previous year. However, when deposit credits
(credits which are allowed because trust operations generate revenue for a bank through
the attraction of deposits) amounting to 24.4
percent are included, the profit figure for District trust operations rises to 29.1 percent of
revenue, or significantly higher tllan in both
1966 and 1967. Of the 59 banks, 35 allowed
credits for deposits. The average deposit credit
was 3.9 percent, somewhat larger than the 3.3percent average for 1967.
Trust departments at 37 of the 59 surveyed
banks - or 63 percent - showed profits in
1968. Although only one-third of the departments having income of less than $100,000
were profitable, more th.an 80 percent of the
departments having commissions and fees of
over $100,000 recorded profitable operations
for 1968.
A significant factor accounting for the variance in net earnings among trust departments
is the relative importance of corporate accounts
in fiduciary operations. Since these accounts are
heavily concentrated at the larger banks in tlle
District, the larger trust operations tend to display greater profitability. This fact is supported
by reports received from eight large commercial
banks in Texas which were able to distribute
their income and expenses among types of trust
accounts. Corporate trusts were the most profit-
business review/june 1969
11
able type of account at the eight banks, with net
income after allowance for deposit credits
amounting to 92.7 percent of total income from
these trusts. Personal agency accounts proved
to be next in profitability, with net income
equal to 48.9 percent of total income.
summary
Trust operations at member banks in the
Southwest expanded at a rapid pace in 1968.
Earnings adjusted for deposit credits amounted
to 29.1 percent of revenue, which is the highest
figure recorded since the trust survey began in
1957. Moreover, the increasing importance of
trust services for both individuals and corporations, coupled with the dynamic growth of the
southwestern economy, suggests that trust activity will continue to expand rapidly in the
Eleventh District.
PETER S . ROSE
A more detailed report of the results of the survey of 1968 income and expenses of
member bank trust departments in the Eleventh Federal Reserve District may be obtained
upon request to:
RESEARCH DEPARTMENT, FEDERAL RESERVE BANK OF DALLAS
STATION
12
K,
DALLAS, TEXAS
75222
dist,-ict highlights
The seasonally adjusted Texas industrial production index rose fractionally during April to
174.1 percent of the 1957-59 base. An increase
in mining accounted for all of the gain in the
index, with mining activity being buoyed by an
advance in the production of crude petroleum.
Utilities and total manufacturing were about
unchanged. A slight dip in the output of durable
goods was nearly offset by a fractional rise in
the production of nondurable goods. The only
durable goods industry which showed any noticeable strength was primary metals. In the
nondurable goods sector, textile mill products
and paper and allied products exhibited the
major strength.
was well below the usual April gain, probably
due to bad weather conditions. The other nonmanufacturing industries experienced employment changes which were generally in line with
seasonal expectations.
Compared with April 1968, industrial production in the State was up 7 percent. Total
manufacturing increased nearly 7 percent, and
mining was little changed. In manufacturing,
durable goods exhibited considerably more
strength than did nondurable goods. The strongest manufacturing gains were recorded in the
production of machinery, both electrical and
nonelectrical. The textile mill industry experienced the only output decline in the manufacturing sector.
Daily average production of crude oil, at 6.5
million barrels, increased 2.5 percent in Louisiana, New Mexico, OklallOma, and Texas during
April and was also 2.5 percent higher than in
April last year. Most of the month-to-month
increase occurred in Louisiana and Texas, since
output in New Mexico and Oklalloma showed
little change. The higher allow abies in bOtll
Louisiana and Texas were responsible for the
production advance. Nationally, there was a decline in oil production for the month, but output was at a higher level than a year earlier.
Nonagricultural wage and salary employment
in the five southwestern states increased 0.8
percent during April to reach a level of
6,111,700 persons, which is 4.5 percent over
the same month in 1968. The increase over
March was slightly weaker than seasonally expected, with both manufacturing and total nontnanufacturing employment showing less-thanseasonal strength . In the nomnanufacturing
sector, there were better-than-seasonal advances
in luining, transportation and public utilities,
and finance. However, the gain in the number
of people employed in construction activities
The Texas allowable for May was set at 53.8
percent of the Maximum Efficient Rate of production; and the Louisiana allowable, at 45.0
percent. For June, the allowable in Texas has
been raised to 63.5 percent - the highest rate
since 1948, when stocks were being replenished
after the dislocations of World War II. AllowabIes also have been raised in Louisiana and
southeastern New Mexico. In May, crude oil
stocks were below desired levels, a fact which
partially prompted requests for higher allowabIes. However, tlle major reason for increased
allowables has been the onset of a strong de-
In comparison with a year ago, nonmanufacturing employment exhibited more strength
than did manufacturing. Construction, transportation and public utilities, finance, and service each showed a larger gain than the
4.7-percent rise in total nomnanufacturing employment. Mining posted the weakest year-toyear gain in employment.
business review/ june 1969
13
mand for gasoline for the summer motoring
season.
Primarily as a result of normal seasonal patterns and the reduced availability of funds, the
major balance sheet items declined at the
weekly reporting commercial banks in the
Eleventh District in the 4 weeks ended May 14.
Large certificates of deposit advanced after
several months of attrition.
Loans adjusted were reduced $88 million,
pulled down by a decline of around $35 million
each in business loans and "other" loans for
purchasing or carrying securities. A year ago,
loans adjusted decreased only $46 million; however, business loans dropped $52 million at
that time. Real estate loans declined $5 million, in contrast to a $7 million increase in the
1968 period, while consumer instalment loans
gained $9 million, or slightly less tllan the rise
in the year-earlier period.
Total investments declined $67 million, as
U.S. Government security holdings fell $77
million. In the corresponding period last year,
holdings of Government securities decreased
$21 million, but total investments registered an
increase of $20 million. Municipal security
holdings gained only about $10 million in the
4 weeks ended May 14, compared with a $44
million rise in the similar 4 weeks of 1968.
On the liability side of the balance sheet, a
reduction of $151 million in total demand deposits was brought about by a $215 million decline in deposits of individuals, partnerships,
and corporations. Interbank deposits were also
down ($116 million). In contrast, deposits of
states and political subdivisions gained $138
million. In the comparable period of 1968, total
demand deposits decreased $68 million.
Total time and savings deposits, buttressed
by an increase in large CD's, declined only $20
million, compared with a $55 million reduction
in the year-earlier period. A decrease of $36
14,
million in time deposits of states and local governments more than offset a $15 million gain in
IPC time deposits. Large CD's were up $11
million in the 4 weeks ended May 14. In the
corresponding 4-week period last year, large
CD's decreased $52 million.
Heavy rainfall during May delayed field activities in most areas of the Southwest; and in
the Gulf Coast area, hail caused considerable
damage to cotton, winter wheat, rice, and vegetables. In the High Plains, major crops are responding to the abundant moisture supply.
Winter wheat prospects have declined in the
Southwest as winterkill appears to have been
more severe than expected. Some fields in
Texas and Oklahoma have been grazed, rather
than harvested for grain. Winter wheat production in the five southwestern states, as of May 1,
is placed at close to 193 million bushels, which
is 5 percent below the April forecast and 12
percent below actual production last year.
Ranges and livestock are in excellent condition throughout the Eleventh District. There
were around a million head of cattle and calveS
on feed in Texas on May 1, or 2 percent fewer
than a month earlier but 38 percent more tllan
a year ago. The number of cattle on feed in
Arizona on May 1 totaled 425,000 and was 39
percent above a year earlier. The limited supplY
of feeders has restricted placements into feedlots in both states.
Prices received by Texas farmers and ranchers for all farm products during January-April
averaged 5 percent higher than in the same
period last year. A 14-percent gain in livestock
prices more than offset a 5-percent decline in
crop prices. Prices of beef cattle, despite a large
increase in supply, in Texas rose nearly 20 percent over a year earlier.
Cash receipts from farm marketings in the
District states during January-March totaled 6
percent more than in the first quarter of 1968.
Most of the gain in total cash receipts was due
to a 9-percent increase in cash receipts from
livestock and livestock products, as those from
crops advanced only 2 percent.
Registrations of new passenger automobiles
in the major metropolitan reporting areas of
Dallas, Fort Worth, Houston, and San Antonio in April were 12 percent above March.
This advance was due mainly to a 35-percent
increase in Houston. On the other band, total
registrations for April were down 1 percent
from the same month last year, and the cumu-
Hew
lative total for the first 4 months of 1969 was
5 percent lower than in the corresponding
period in 1968.
The year-to-year margin of gain for department store sales in the Eleventh District
through May 24 of this year was about the
same as that for the like period in 1968. Cumulative sales thus far in 1969 were 10 percent
above the comparable 1968 period, while sales
during that period were 11 percent higher than
in 1967. Sales during the 4 weeks ended May
24 were 8 percent greater than those at the corresponding time last year.
The Alvarado State Bank, Alvarado, Texas, an insured nonmember bank
located in the territory served by the Head Office of the Federal Reserve Bank
of Dallas, was added to the Par List on its opening date, May 5, 1969. The
officers are: W. B. Finley, Chairman of the Board, and James A. Nees, President.
The First Bank, Houston, Texas, a nonmember bank located in the territory
served by the Houston Branch of the Federal Reserve Bank of Dallas, was added
to the Par List on its opening date, May 9, 1969. The officers are: J. Doug Toole,
Chairman of the Board; Robert Howard, President; Henry Efird, Senior Vice
President; Doug Toole, Jr., Vice President; and J. E. Wallace, Cashier.
business review/june 1969
15
STATISTICAL SUPPLEMENT
to the
BUSINESS REVIEW
June 1969
FEDERAL RESERVE BANK
OF DALLAS
RESERVE POSITIONS OF MEMBER BANKS
CONDITION STATISTICS OF WEEKLY REPORTING
COMMERCIAL BANKS
Eleventh Federal Reserve District
Eleventh Federal Reserve District
(Averages of daily flgures. In thousands of dollars)
(In thousonds of dollars)
May 21,
1969
Item
April30,
1969
May 22,
1968
item
RESERVE CITY 8ANKS
ASSETS
Total reserves held ••..•...•..•
Net loans and discounts ........... . ...... .... .
Valuation reserve, . .............•........... .
Gross loans and discounts ....... ........ .. .. ..
6,356,268
J J8,39J
6,474,659
6,269,161
J J9,4J5
6,388,576
5,471,502
J 07,603
5,579,105
Currency and coin .. ...... . ..
Required reserves .•.••...•..•.
Excess reserves •.• . ....•.•• ...
Borrowings ..•••..•. .........•
Free reserves • . •...•...• . • • ••.
Commercial and industria l loans ••.•.•••.• ....
Agricu ltural loans, excluding
certificates of interest •••..........•.....•
loan s to brokers and dealers for
purcha si ng or carrying:
3,106,874
3,117,771
2,695,812
115,339
11 0,766
101,022
U.S. Government securities ................
Other securities ................. . •......
501
39,497
28,176
60,401
5,747
20,902
622
383,516
339
392,832
316
339,139
With Federal Reserve 8ank ••..
ecc
Total reserves held ... . ..... ..•
Other loan s for purchasing or carrying:
U.S. Government securities .........•......
Other securities ••..... . ......... .. .. ••••
Loan s to nonbonk flnancial institutions:
Sol es Anance, personal Anance, factors,
and other business credit companies ..••. . .
148,320
391,417
623,396
129,732
6,621
661,359
138,535
295,100
546,831
234,775
5,124
572,411
Oth.r loans . .. ...........................
0
716,903
0
717,446
0
623,391
Total inve stments •• ••.•• •.•. •• ••••.•.••••.•.•
2,546,005
2,754,561
2,456,911
Total U.S. Government securities ••••.••••••.••
Trea sury bill s..........•.•.............•
Treasury certiAcates of indebtedness ••••..•.
Treasury notes and U.S. Government
bonds maturing:
Within 1 year ..• •.••••••••• .•... . .. •.
974,382
41,320
0
1,057,422
71,582
0
1,151,720
36,719
0
112,650
605,568
214,844
118,950
669,636
197,254
235,413
628,490
251,098
28,136
1,310,402
64,099
1,385,434
6,929
1,121,316
148,158
84,927
1,134,931
700,511
82,992
458,650
5,729
377,797
144,183
103,423
1,252,329
768,242
81,034
485,789
5,233
396,044
108,875
68,071
935,482
670,847
81,059
413,039
4,306
364,184
TOTAL ASSETS ... .................... . . 11,662,883
12,012,393
10,397,330
1 y.ar to 5 y.ars •••••• • •••••• • •••••••
Aft.r 5 years .........................
Obligations of states and political subdivisions:
Tax warrants and short·term notes and bills ..
All oth.r ...............................
Other bonds, corporate stocks, and securities:
Participation certiAcates in Federal
agency loans ......•..•••••••••••••••.
All other (including corporate stocks) ••••••••
Cash items in process of collection ...••.•••• ••..
Reserve s with federal Reserve Bank • .•• .••..••. .
Currency and coin .... • .•.... •• .•..••. • •.••..
8alances with banks in the United States •• • •• • •••
Balances with banks in foreign countries .•• •..•. .
Oth.r assets .. ........ ......................
With Federal Reserve 8ank . • •.
Currency and coin ..•..••... .
Required reserves .•.. . .. .. ...•
Excess reserves .•.. • .. ...•.. ..
Borrowings •. ..•.•••....• .. . ..
free reserves . .. ......... . ..•.
ALL MEM8ER 8ANKS
Total reserves held •.• .. .. . ... .
With Federa l Reserve 8ank • • ••
133,753
391,397
614,464
302,401
6,563
662,829
Oth. r ..•••••.• • ..•••••.•••••••.••••.••
Reol estate loans.•.....•....• " .•..•..••..
loans to domestic commercial banks ..•. .. .....
loons to foreign banks ..•....••.••.•• . .•...
Con sumer instalment loans •••••.••••••• • .••••
loans to foreign governments, ofAciol
institutions, central banks, international
institutions .••••• ••••••• •••• •••. ..... .. . •
COUNTRY BANKS
Currency and coin .•..... .•..
Required re se rve s . ...•........
Excess reserves . .. . ....• • .....
Borrowings •••....• •.•. .. .....
Free reserves . .... ... . ........
5 weeks end ed
May 7, 1969
4 weeks ended
April 2, 1969
4 weeks end ed
May I, 1968
759,848
708,529
51,319
761,901
-2,053
36,051
-38,104
738,083
687,347
50,736
743 ,829
-5,746
43,800
-49,546
698,424
648,098
50,326
693,102
5,322
28,968
-23,646
778,291
602,895
175,396
763,963
14,328
11,704
2,624
758,203
583,037
175,166
731,720
26,483
13,078
13,405
702,075
536,035
166,040
670,130
31,945
10,052
21,893
1,538,139
1,31 1,42 4
226,715
1,525,864
12,275
47,755
-35,480
1,496,286
1,270,384
225,902
1,475,549
20,737
56,878
-36,141
1,400,499
1,184,133
216,366
1,363,232
37,267
39,020
-1,753
CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS
(In thousands of dollars)
item
Total gold certiAcate re serveS .•. . •..•. .•. ..
Discounts for member banks . . . •...••....•..
Other discounts and advances . •.•.....•.. ..
U.S. Government securities •....•.. . .•• ..•. .
Total earning assets .. ••... , ... , .••...•. •. .
Member bonk reserve d eposits • • ••.• .... .•.•
Federal Reserve notes in actual circulation •••..
-=
May 21,
1969
April 30,
1969
May 22,
1968
296,816
40,902
279,326
122,172
2,234,932
2,275,834
1,217,995
1,550,140
2,214,592
2,336,764
1,271,674
1,536,775
298,101
63,613
741
2,139,330
2,203,684
1,148,618
1,426,829
o
o
CONDITION STATISTICS OF ALL MEMBER BANKS
Eleventh Federa l Reserve District
L1A81L1TIES
(In millions of dollars)
Total d.posits ..............................
9,480,377
9,742,404
8,809,449
Total demand deposits .. ...................
5,741,134
3,865,804
412,735
228,068
1,124,122
5,957,042
3,985,348
364,737
298,162
1,180,165
5,274,492
3,643,736
308,183
137,777
1,070,282
2,992
25,247
82,166
3,739,243
4,204
25,318
99,108
3,785,362
3,934
23,926
86,654
3,534,957
994,571
2,029,984
667,744
11,446
28,008
993,021
2,006,770
737,729
11,446
28,906
1,081,477
1,827,512
589,362
7,969
23,137
Individuals, partnership s, and corporations • •. .
States and political subdivisions • . . •..••. ...
U.S. Government • ...........•. . .••• •••..
8anks in the United States ............. .. ..
foreign:
Governments, ofAcial institutions, central
banks, international institutions••.... ...
Commercial banks•....•.......... .....
CertiR ed and ofAcers' checks, etc ...........
Total tim e and savings deposits ••.. .•...•••••
Individuals, partnership s, and corporations:
Savings deposits ..••..•.•............ .
Oth er time depo sits •••. •• .•.. .• ... . .. . .
States and political subdivisions ...•••••.•.•
U.S. Government (including postal savings) •••
8anks in the United States .................
Foreig n:
Governments, ofAcial Institutions, central
banks, international institutions•••.•.•.•
Commercial banks.....•......•.••.....
Bills payabl e, rediscounts, and other
liabiliti es for borrowed money •..•.••. . . ....•
April 30,
1969
March 26,
1969
loans and discounts ••. .. . ......•........
U.S. Government obligations ... ...••..•...
Other sec uriti es .. ..•.. .. ..... ..•..••. . .
Reserves with Federal Reserve Bank .. .••• ..
Cash in vault . . . .. • . ......•....•..•.. ..
Balances with banks in the United States . . . .
Balances with banks in foreign countries e .. . .
Cosh items in process of collection ........ .
Other assets e .. . ••.... .. . ..... •........
11,Q91
2,354
3,311
1,272
251
1,194
8
1,410
679
11,054
2,403
3,237
1,274
255
1,184
9
1,115
698
9,656
2,495
2,754
1,155
249
TOTAL ASSETse .... .. .......... . .. ..
21,570
21,229
!1.,39b
1,485
9,053
7,681
1,484
8,770
7,732
1,443
8,341
6,941
Borrowings •....•............... .......
Oth er liabilities e •.. ..•..... ... •..•..•..
Tota l capital accounts e •..•..•.••.•......
18,219
1,096
569
1,686
17,986
980
591
1,672
TOTAL LIABILITIES AND CAPITAL
ACCOUNTSe ••..••..•. • ••..•.•• . . •
21,570
21,229
Item
ASSETS
L1A8ILITIES AND CAPITAL ACCOUNTS
Demand deposits of banks ..... . .... . .. ..
Other demand deposits ......... ... ..... .
Time deposits ••....... . ... •. . .•.•. .....
7,000
490
7,000
490
5,300
200
Other liabilities ••..•.•••••••••••••••••••.•••
976,584
248,628
1,047,908
268,280
448,689
230,024
CAPITAL ACCOUNTS ...... ...... ...... .... ..
957,294
953,801
909,168
TOTAL L1A81L1TIES AND CAPITAL ACCOUNTS 11,662,883
12,012,393
10,397,330
2
=============================~
Total deposits ............ . . . ...... ..
=
1,22~
1,343
517
-
16,725
745
356
1,571
~
--------------------------------------------------------e - Estimated .
BANK DEBITS, END-Of-MONTH DEPOSITS, AND DEPOSIT TURNOVER
(Dollar amounts in thousands, seasonally adju sted )
~==================================================================
DEBITS TO DEMAND DEPOSIT ACCOUNTS'
DEMAND DEPOSITS'
Perce nt change
-
{Annual -ra te
Standard metropolitan
stoti$tico l area
Annual rate
of turnover
April 1969 from
April
1969
ba sis}
March
1969
4 months,
1969 from
196B
April
196B
April 30,
1969
April
1969
March
1969
April
196B
24.4
29.3
33.0
23.7
19.0
34.8
31.4
25.7
23.5
22.4
15.2
51.5
29.5
31.9
247
35.7
20.9
32.1
18.8
13.B
20.2
17.5
25.0
16.0
23.1
23.5
24.0
20.6
23.3
31.6
32 .7
22.9
20.1
33.6
31.7
24.6
21.9
21.1
12.8
50.6
29.0
30.B
24.3
36.6
21.6
27.2
17.2
15.5
19.2
18.6
25.5
16.B
22.1
21.0
22.4
lB.4
25.0
26.3
27.3
21.8
20.0
35.9
23.5
25.1
20.9
22.8
14.4
46.0
28.2
32.3
22.6
35.9
20.7
26.8
16.5
12.3
19.7
16.3
23.B
17.1
24.1
20.7
22.3
20.1
35.1
34.B
32.9
5
-6
2
7
-3
4
5
6
7
7
15
2
4
5
1
-4
-4
20
10
-9
3
-7
-3
-3
4
12
9
11
lB
17
22
22
3
8
57
B
8
5
16
27
14
12
12
8
14
27
25
18
19
13
13
6
10
26
8
5
15
15
13
18
9
5
56
5
7
4
3
33
16
11
5
14
18
16
17
lB
19
Sherman·Denison ...... . ...... . ............ . ..
Texarkana (T exa s·Arkansa s) ••••••••••••••• • •• •.
Ty ler .................... ........... ..... ...
Waco .......................•..............
Wichita Fall . ...... .. ...... . .......... .......
5,233,176
2,436,708
7,6 11,204
840,432
1,917,360
5,1 B8,380
9,112,296
6,039,036
1,694,772
4,5 B7,960
472,080
110,702,56B
6,448,164
20,131,30B
2,497,980
84,374,340
797,316
4,848,576
1,694,244
1,842,900
1,527,432
1,135,164
15,153,46B
971,844
1,63B,096
2,201,652
2,779,896
2,401,452
17
11
11
$ 212,455
86,472
233,142
35,156
102,603
150,233
297,844
236,204
72,288
203,415
30,216
2,112,432
220,9 15
624,040
102,679
2,361,492
38,032
155,314
91 ,300
135,525
73,319
64,740
617,307
61,278
71,155
92,142
113,492
118,562
Totol_2B centers ......................... . .........
$306,279,804
0
17
20
$B,713,752
ARIZONA: Tucson ...••..••.. • • ..•• •. ••..• • •..•••.•••
LOUISIANA: Monroe ••.•...•••.••.•••.•.••..•••...••
Shreveport .....•.•..•...........••. . ....
NEW MEXICO: Roswell ' ••..••.••••••••••••.•••••••••
TEXAS: Abilene ............... . .....................
Amarillo . ........ ......• ...........•....... .
Austin . ............•....•......•............
Beaumont-Port Arthur- Orang e ..................
Brownsvill e-Harling en-San Benito ................
Corpus Christi . ••........... .. .. . .•.. . ..•• . . ..
Corsicana ' ..................................
Dalla s••••••.•...••...••.••••..•••..•••...••
EI Pa .o •.•••.•••.•••..•••..••..•• • .•••...• •.
Fort Worth .... ............ ................ ..
Galveston -Texas City ...................••....
Houston ••••..•• .•••.. ••••.•••••••••••• . .•••
laredo . ... ..... .. .... ..... . .... . .......... .
Lubbock ••••••• • •••• •• ••••.•• • ••••..••••.•••
McAllen· Pharr-Edinburg ........... . ........ ....
Midland ..•••..•••••.••••••• •. ••••.•••.•.•• •
Odessa ........... . .............. ...... .... .
~~~ ~~~o~~·. : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : :
-
$
14
9
9
14
! Deposits
of individual s, partnerships, and corporations and of sfates and political subdivisions.
.. COunty basis.
GROSS DEMAND AND TIME DEPOSITS Of MEMBER BANKS
Eleventh federal Reserv e District
(Avorago. of dally flgures. In mill ions of dollars)
BUILDING PERMITS
GROSS DEMAND DEPOSITS
~
Date
Total
Reserve
city banks
1967: April ......
1968: April •• ••••
November ..
Decem ber ..
1969: January •••
Fe bruary ...
March •••.•
April ......
9,140
9,655
10,365
10,6B2
10,752
10,328
10,26B
10,497
4,245
4,486
4,776
5,007
4,935
4,734
4,7Bl
4,893
VALUATION (Dollar amounts in thousands)
TIME DEPOSITS
Country
bonks
Total
Reserve
city banks
Country
banks
4,B95
5,169
5,5B9
5,675
5,817
5,594
5,487
5,604
6,231
6,973
7,49B
7,598
7,627
7,707
7,722
7,704
2,723
2,869
3,145
3,185
3,135
3,091
3,042
2,988
3,50B
4,104
4,353
4,413
4,492
4,616
4,6BO
4,716
Percent change
April 1969
from
NUMBER
Mar •
1969
Apr.
196B
9,020
$ 16,933
197
72
57
276
1,6B4
1,328
5,387
4,791
16,867
89
10
-65
183
-41
111
155
590
1,695
438
233
1,247
8,004
129
1,832
1,998
373
10,942
139
465
228
246
313
215
4,077
296
116
B99
300
310
4,578
20,B83
1,002
638
1,973
27,745
303
8,740
9,547
2,254
37,160
489
1,51 7
382
242
448
503
7,033
459
926
1,117
1,530
4,691
9,542
63,40B
4,OB6
4,540
8,293
102,112
1,816
33,852
35,840
B,175
159,B41
1,6B2
11,900
1,713
4,514
3,460
1,784
3 1,572
2,212
2,966
6,249
6,364
-90
397
21
3
2
-44
14
-27
4B
39
-55
-11
228
-72
0
-9 1
-82
122
- 11
-40
-40
-43
187
-56
247
86
-50
-12
-51
9
-46
55
4
232
12
51
-38
-22
-44
1
-82
-31
-31
-29
-4
3
113
27
59
-32
135
-46
27
55
26
31
168
9
120
57
-49
124
177
-63
-3B
43
18
2
B9
$549,203
2
14
17
.4 mos.
1969
734
2,351
B4
4B6
48
A"'arillo ••••.•
156
434
8 ustln. '" .•••
8caYmont ... , .
127
Crownsvlll e ... .
75
362
D°IPu, Chri.tI ..
Dolo ... ... ... 2,469
34
Ele~ison • ••••••
F aso, .. ....
556
G'rt Worth •• .•
548
Halvcston . .. , .
111
l Oust On • •• ••• 3,086
32
L~bbdo .......
113
M'd ock ......
41
O~ land ......
p esso .......
B6
sort Arthur • . . .
109
San Angelo .••
56
n Antonio ... 1,098
T erman . .. ...
107
Wxarkana ....
35
256
Wkh~t~' j:~il;: :
83
ARIZONA
TUcson ........
lO
UISIANA
Monroe. West
Sh Monroe • • •••
TEXA~·v.port ••••
~bll.ne • • •••• .
Sh
---
Total_26 cities .. 11,326
.4 months,
1969 from
1968
.4 mos.
1969
April
1969
~rea
39,241
April
1969
$
$145,514
VALUE Of CONSTRUCTION CONTRACTS
(In millions of dolla rs)
Janua ry-A pril
Area and type
April
1969
March
1969
February
1969
1969
1968
FIVE SOUTHWESTERN
STATES' ............ . ...
Residential building • •. • • • •
Nonresidential building ....
Nonbuilding construction ...
UNITED STATES ............
Residential building • •.• •••
Nonresidential building •.. •
Nonbuilding construction ...
498
240
14B
109
5,895
2,546
2,136
1,213
517
233
148
136
5,003
1,957
1,772
1,274
56B
220
214
135
4,802
1,820
1,8B5
1,097
2,163
92B
672
564
20,327
8,028
7,873
4,426
1,902
867
543r
493
17,626
7,454
5,925
4,24B
Arizona, louisiana, New Mexico , Oklahoma, and Texas.
Revised.
NOTE . - Details may not add to total. becau.e of rounding .
SOURCE: F. W. Dodge, McGraw-Hill, Inc.
1
r-
3
WINTER WHEAT PRODUCTION
CASH RECEIPTS FROM FARM MARKETINGS
(Dollar amount s in thousands)
lin thousands of bushels)
=
Area
1969,
indicated
May 1
1968
1967
Arizona ................... .
louisiana . .. .... .. ......... .
New Mexico ................ .
Oklahoma •••• • •...••••••••.
Texa s ..... ..... ....... .... .
4,617
1,300
5,307
116,370
65,090
2,704
2,112
7,625
122,383
84,150
2,450
2,600
3,948
88,689
53,216
Total •••.•••••..••••..••• •
192,684
218,974
150,903
January-March
Area
1969
1968
Percent
increase
Arizona .• . . ......••........
Tex a s...••.....•.. .. . •• ....
$ 118,556
112,07 1
46,474
184,430
579,550
$ 11 2,420
103.063
43,158
173,865
549,347
5
9
8
6
5
Total • • ••• • • •.•.••• •• •.•••
United States ••. • ••••. • ••••
$ 1,041,081
$9,862,335
$ 981,853
$9,368,655
6
5
Louisiana .•• . ...•.. .. •... . ..
New Mexico . .. . . ........... .
Oklahoma • ••.. • .•• •• ••.••..
SOURCE: U.S. Department of Agriculture .
SOURCE: U.S. Dopartment of Agriculture.
DAILY AVERAGE PRODUCTION OF CRUDE OIL
(In thousands of barrels)
COTTON ACREAGE, PRODUCTION, AND VALUE OF PRODUCTION
(In thousands)
Percent change from
April
1969
Are a
FOUR SOUTHWESTERN
STATES • •• • .••• ••••••• ••
Louisiana ..•...........•
New Mexico ••••• •• .. • . .•
Oklahoma ••• ••••• •••• ••
Texas ............... • ..
Gulf Coast •• •• ••••••••
West Texas ••.••.••..•
East Texas (proper) • •• •.
Panhandle •• • ••••••••.
Rest of State •• • • •• •• ••
UNITED STATES • • ••••••••••
6,468.8
2,335.2
354.0
623.0
3,156.6
612.3
1,494.2
141.8
92.7
815.6
9,269.0
March
1969
6,312.7
2,279.1
353.1
625.6
3,054.9
592.2
1,426.1
126.0
95.2
815.4
9,430.2
April
1968
March
1969
6,313.6
2,142.6
351.2
628.6
3,191.2
631.2
1,488.8
151.2
94.5
825.5
9,122.9
2.5
2.5
.3
- .4
3.3
3.4
4.8
12.5
-2.6
.0
-1.7
April
1968
2.5
9.0
.8
-.9
-1.1
-3.0
.4
-6.2
-1.9
-1.2
1.6
Acreage harvested
=
Bales produced l
Area
1967
1968
1967
1968
Arizona •••• ..• •..
Loui siana .•.•.• . ..
New Mexico •..• ••.
Texas ....•• • .....
297
4 10
152
380
4,125
245
330
122
370
3,525
733
545
177
264
3,525
454
428
157
194
2,767
$ 10 1,803
73,452
26, 145
30,198
415,883
Total • •••• •• • ••.
United States •••.
5,364
10,160
4,592
7,997
5,244
10,948
4,000
7,458
Oklahoma •••• • ••.
1
--
Value of lint and seed
1968
1967
---$ 647,481
$1,440,902
$
77.7~~
71,1
28,98:
24,40
339,948
-
$ 542,2 38
$1,13 1,226
500 pounds gross weight.
SOURCE: U.S. Deportment of Agriculture.
-
SOURCES: American Petrole um In stituto.
U.S. Bureau of Mines.
Federal Reserve Bonk of Dallas .
NONAGRICULTURAL EMPLOYMENT
INDUSTRIAL PRODUCTION
(Seasonally adiusted Indexes, 1957-59
Five Southwestern Stotes
= 100)
'
==============================================~
Percent change
Area and type of index
April
1969p
March
1969
February
1969r
Type of employment
TEXAS
Total industrial production •••.•.
Manufacturing . • ....•..........
Durable ••• ••• ••• •• ••••••••• •
Nondurable ••••• •••••••••••••
Mining ........... ...... .. • ...
Utilities • ..•• ..•....... . .......
UNITED STATES
Total industrial production •••...
Manufacturing .•.........•. •.•.
Durable ••••••••• ••.•••••• • ••
Nondurable •••• • • ••••• • • •••••
Mining .••........ .... ........
Utilities ••••• ••••••• ••• • ••• ••••
p r -
174.1
195.1
214.6
182.0
125.5
276.7
172.7
195.5
216.7
181.3
121.2
276.7
167.4
192.6
213.0
179.0
118.2
234.3
162.5
182.7
193.5
175.5
124.6
207.1
171.5
172.8
175.7
169.3
128.9
216.0
171.0
172.5
175.4
168.8
126.5
215.1
170.0
171.5
174.3
167.9
124.7
214.9
162.5
163 .7
167.2
159.5
127.1
196.5
Preliminary,
Revised.
SOURCES: 80ard of Governors of the Federal Rese rve System.
Federal Reserve 8ank of Dallas.
4
Apr . 1969~
Number of persons
April
1968r
April
1969p
March
1969
April
1968r
Mar.
1969
Apr.
1968
6,111,700
1,134,400
4,977,300
232,000
391,100
6,060,900
1,129,700
4,93 1,200
230,300
389,800
5,849,200
1,097,000
4,752,200
225,700
371,300
0.8
.4
.9
.7
.3
4.5
3.4
4.7
2.8
5.3
453,200
1,385,400
300,900
945,900
1,268,800
441,600
1,366,700
297,500
933,900
1,271,400
431,300
1,331,100
285,200
896,000
1,211,600
2.6
1.4
1.1
1.3
-.2
5. 1
4.1
5.5
5.6
4.7
----------------------------------------------------Tatol nonagricultural
woge and salary workers •.
Manufacturing . ...••.....
Nonmanufacturing .•......
Mining . .•..... . ......
Construction • ...... ...•
Transportation and
public utilities •.......
Tra de • • •••• •.• •.. •. . •
Finance •••••... ....•..
Service •• •••... ....•..
Government ... .. . .. .. .
1 Arizona, Loui siana, New Mexico, Oklahoma
p r _
Preliminary.
Revised.
SOURCE : State employment agencies.
and Texas.
'
-----
@FedFRASER