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MONTHLY
BUSINESS
REVIEW
of
the
FEDERAL
Volume 35
RESERVE
BANK
Dallas, Texas, March 1, 1950
of
Dallas
Number III
THE GROWTH OF MANUFACTURING IN THE SOUTHWEST
KEITH
W.
Industrial Economist
Federal Reserve Bank of Dallas
JOHNSON,
The rapid growth of manufacturing in the Southwest-Arizona, Louisiana, New Mexico, Oklahoma, and Texas--during the past decade has attracted widespread attention both regionally and
nationally. The size of many of the new plants in the area and the numerous and varied products turned
out are impressive. The manner in which industry has made use of existing resources to operate the
enlarged industrial machine has constituted a real contribution to production and income. The chief
interest during the decade has centered around three major movements: (a) the construction and
utilization of numerous large facilities for the production of war materials, (b) the use or conversion
of some of those plants in the production of civilian goods, and (c) the construction and operation of
a diversity of large, new plants designed especially to make -use of the area's important resources. The
interest was especially keen with respect to those wartime plants which represented new industries sucb
as aircraft, shipbuilding, rubber and rubber products, ordnance, explosives, and metals. Yet, long before
the development of these new industries was begun, a feverish expansion was taking place among many
of the smaller industries which were reaching out in an effort to supply the needs incident to the rearmament program. As the new wartime plants came into production, they developed a network of
smaller plants which functioned as suppliers of parts and semi-manufactured products to the large
industrial units. Most of these plants subsequently were able to convert to some peacetime activity and
to operate profitably because the managements, through wartime experience, had acquired the "know
how" to handle a diversity of operations. Moreover, there was a wide range of choices as to products that
might be manufactured since the backlog of demand for virtually every type of consumer goods was
very large.
The impressive industrial progress of the Southwest between 1939 and 1947, when placed in its
proper perspective with the growth of manufacturing over half a century, shows that the permanent
gains of the area were at a rate appreciably greater than that of any previous period of similar length.
While part of this increase in manufacturing activity represented war-induced or artificial growth, yet
a major portion of it apparently was soundly conceived and was along the lines adaptable to the area's
potentialities. The war, to some extent, acted as a catalyst speeding up the industrial development that
otherwise might have been accomplished largely at a later date. Of course, those plants having purely
military uses were constructed only because of the war stimulus, and some of them have been difficult
to absorb into the peacetime economy of t'he area. There were many new plants useful both in war and
in peace, and the acquisition of such plants at an earlier date, as a result of the war, was a very real
advantage to the Southwest.
In appraising the prospects for further growth and development of the industrial segment of the
economy of the Southwest, it is desirable to look beyond the effect of the war as a cause of industrial
growth, and to seek out those factors favorable to industry which so greatly facilitated this rapid wartime expansion. T'hese same favorable factors had made possible in the four decades before the war a
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
42
MONTHLY BUSINESS REVIEW
faster rate of growth in the Southw~st than in the Nation, and in the future can be counted upon to
playa continuing part in the industrial development of the area.
In reviewing the past growth and present status of manufacturing in the area, it is de~irable to
have reliable measures of the economic importance of manufacturing. In the Census of Manufactures
for 1947, recently released, as well as in such censuses for earlier years, a variety of useful data is
available. This greatly facilitates the analysis and evaluation of many of the salient factors of the
industrial development of the last decade and relates them to the basic features of the expansion that
had taken place during the preceding decades.
The economic importance of manufacturing is generally measured by value added by manufacture; that is, by the direct contribution to income through the wages and salaries paid, the remuneration of capital, the rent ot land, the taxes paid, and the profits earned. The value added by manufacture
is calculated by deducting from the value of the goods shipped the cost of materials, supplies, containers,
fuel, purchased electric energy, and contract work. This adding of value to materials through the
manufacturing process contributes to
the income and employment of an area
VALUE ADDED BY MANUFACTURE IN FIVE SOUTHWESTERN
in several ways. First, it provides a betSTATES,' BY INDUSTRY, 1939 AND 1947
ter market for the raw materials pro(Amoun ts in millions of dollars)
duced in the area, with a larger output
Increase
and often a higher price being achieved.
Industry group
1939
1947
Amount
Percent
Second, these materials leave the area
products .. .. . . .. . . .. . . . . . .
$209
$ 582
$ 373
178
not as low-priced raw materials but as . TFood
12 *·
25
208
37"
extile .............. . . . ....... .
72
21
93
350
higher-priced semi-finished or finished Apparel. . . . . . . . . ....... . ..... . .
147
236
Lumber and lumber products . . . . .
62
209
products. Third, in ·an area in which Furniture
239
23
and fixtures .. ...... .. .
33
10
102
319
32
134
such manufacturing is well developed, Paper . . .. .... . . .. .. ...... . .. .. .
Prmting and publishing . . .... ... .
158
60
155
95
there is a better market for the various Chemical.
499
.. . . . . . .. ... . ....... . .
379
316
63
562"
404
255
158"
skills of a larger working population. Petroleum and coal products ... . . .
Leather and leat her products . ... .
1
348
6
5
Fourth, opportunities for the employ- Stone,
70
211
clay, and glass products .. . .
33
103
28"
119"
91
327
ment of capital in a manufacturing Primary metals . ... ... ... . ... . . .
Fabricated metal . ... .. . . . . . . .. . .
24"
107
83
350
area are greater, more diversified, and Electrical
12"
10
500
2"
machinery .. . . . .. . . . .. .
126
265
48"
174
often more profitable than would be Other machinery .. . . . .... . .. .. ..
15"
118
800
133
Transportation equipment . . . . . . . .
the case without such manufacturing. Other . .. . ........... . ... . . . . . . .
72
654
U
83
And fifth, a manufacturing economy is
270
$2,921
$2,132
Total . . . . . . . . . . . . ... . .
$789
a dynamic economy in which research,
-Arizona, LouiBiana, New Mexico, Oklahoma. and Texas.
"Partly e8timaled .
technological changes, accumulation of SOURCE:
United States Bureau or thJ CeMus..
capital, rising population~ increasing
skills and managerial "know how," expanding markets, and trade all tend to reinforce each other to increase further both the total income
and the income per capita.
These advantages, which result from adding value through the process of manufacture have been
accruing to the Southwest over a long period of years, but they were especially marked during the war
period. The 1947 total of $2,922,000,000 was 3.7 times the 1939 figure of $789,000,000. Even after
adjusting for price changes, the 1947 figure was 104 percent more than that of the prewar year. This
striking increase in manufacturing activity was manifested in most of the major industries of the area.
The larger gains in value added by manufacture were in petroleum refining, chemical plants, and food
products, the combined gains in these three industry groups totaling $1,093,000,000 or over half of
the gain for all groups. The gains in these three major industries reflected not only the intense demand
for their larger production during the war period but also substantial increases in prices. In several
other industry groups, where the percentage gains were exceedingly large, the increases were stimulated
in part by these same factors, but also represented a tremendous new growth in industries where output
was very small before the war. The exceptionally large increase in the miscellaneous category indicates
that a wide diversity of industries received a pronounced stimulation from the war demand.
The gains in manufacturing employment and in plant facilities from 1939 to 1947 followed the
same general directions as those in value added by manufacturing. During this 8-year interval, the
number of manufacturing establishm~nts in five southwestern states rose by 36 percent and the n umber
of production workers in manufacturing increased 79 percent. The employment gains were most
43
MONTliLY BUSINESS REVIEW
pronounced in the food products, transportation equipment, petroleum refining, chemical, and lumber
products industries. Percentagewise, the largest gain was in transportation equipment, due to the
mushroom growth of aircraft plants and shipyards.
The major war facilities
GROWTH OF MANUFACTURING, 1939-1947
expenditures in the area were
PERCENTAGE
I NCRE:ASE
concentrated in a relatively few
industries and localities. Syn~ TEXAS
thetic rubber and chemical
~ 5 SOUTHWESTERN STATES
plants accounted for a third of
IIIIIIllIIII UNITED STATES
~~""-------i150
total expenditures, refineries
and related installations nearly
a quarter, and ordnance, metal,
machinery, shipyards, and airoot-----~~~t--------~~~1*~-----~IOO
craft plants about 40 percent.
Geogra phi cally the heaviest
construction of the new facilities was in the Gulf Coast area,
although numerous war plants
were located inland, scattered
throughout the Southwest. For
illustration, there were carbon
black plants in West Texas; air( I N CONSTANr
CONSTANr
craft plants in northern Texas;
(f"o~m,::,r
DOLLARS)
DOLLARS)
a blast furnace in east Texas;
SOUACEs' u.s. eUAEAU OF THE CENSUS.
and shell loading, TNT, synU.S.BUREAU OF LABOR STATISTICS.
thetic rubber, and other types of plants in various parts of the area.
(IN
The urgency for new facilities to produce war goods and the huge cost of such projects, amounting to about $1,500,000,000, in the Southwest, largely determined the method of financing them,
although the prospective use of the facilities in the postwar period had an important bearing on decisions in numerous instances. Generally,
the specialized war plants havNUMBER OF PRODUCTION WORKERS IN MANUFACTURING IN
ing
little
prospect for extensive use
FIVE SOUTHWESTERN STATES,' BY INDUSTRY, 1939 AND 1947
after the war or those plants which ap(Number of workers in thousands)
peared to be too large for effective use
in
peacetime operations, were financed
Inereaae
with
government funds and leased to
Industry group
1939
1917
Number
Percent
private
industry for operation. On the
Food products . ... . .. . .
54 .2
80.3
26.1
48
Textile . ..
. .......... .
9 .7"
10.1"
.4
4
other hand, those plants which were
14 .6
Apparel. . . . . . . . ....... . . . . .
27.4
12 .8
88
considered capable of being fitted into
45 .2
Lumber and lumber products.
17.8
63 .0
39
Furniture and fixtures . . . . .
4 .5
7.8
3.3
73
a normal peacetime expansion program
Paper ... . . ... ...... . ... . . .
9.1
16.5
7.4
81
after the war were privately financed,
P rinting and publishing . . . . .
11.2
18.7
7.5
67
Chemical.... .. .. . . . . . ... . ... .
12.1
30.1
18.0
149
especially where the operators were in
Petroleum and coal products . ... . .
26 .3"
45. 2"
18 .9
72
a strong financial position or where it
Leather and leather products . ... .
.7
1.5
.8
137
Stone, clay, and glass products . . . .
9.5
17.2
7.7
81
was to the operators' benefit to own the
17.7
Primary metal . . . . . .. . .. " . . . . .
7.2"
10 .5
146
facilities outright. Among the 60 major
7 .1
Fabricated met al. .
17.3
10 .2
143
E lectrical machinery . . , .
. 5**
2 .0"
l.5
300
facilities, which represented 88 percent
Other machinery .. . ..... .
11.2
25. 2
14 .0
125
of the total cost of war facilities, the
Transportation equipment .. . .... .
4.4
27.9
235
540
Other . .
. .... .. . . . .
4.8
7 .5
2 .7
56
ordnance, metals, and transportation
equipment plants were financed almost
Total. . .............. .
232 .3
415 .4
183 .1
711
wholly with government funds. In the
• Arilona, Louisia.na, New Mexico, Oklahoma, and Texas.
•• Partly estilll&ted.
petroleum and chemical industries,
SOURCE: United States Bureau of tbe Census .
there were several very large plants involving huge outlays which had to be
publicly financed, yet these industries showed a preference ' for private financ ing whenever it was
feasible. Consequently, the petroleum industry financed about 40 percent of its plant expansion and
44
MONTHLY BUSINESS REVIEW
the chemical industry about 16 percent. Among the 550 facilities costing less than $ 5,000,000 each,
approximately 60 percent of the $183,000,000 expenditure on plants was financed by private industry.
These plants represented a group of industries which, during the rearmament and early war period,
built new facilities or expanded existing plants in order to participate in government contract work.
It also included numerous small plants which became subcontractors for the larger war plants. The
over-all program for building, financing, and disposing of war facilities enabled the area to acquire
quickly a large volume of manufacturing facilities which private industry through its own efforts
could not have acquired so soon.'
While the expansion in plant facilities and the growth in the value added by manufacture highlighted the industrial development between 1939 and 1947, the more important and lasting benefits
probably were those derived from a broadening of the skills and perspectives of workers and management. During the period, several hundred thousand tradespeople, professional workers, farmers, housewives, and others gained their first experience in modern manufacturing plants. They not only learned
the skills necessary to handle numerous operations and machines but they also acquired skills in precision work. At the same time, operators of many small businesses who through the years had developed
the "know how" of managing small-scale enterprises were suddenly confronted with the necessity of
managing huge plants and complex operations. In fact, within
MANUFACTURING PER CAPITA, 1899-1947
a relatively short period there
was developed a personnel capaDOLLARS
ble of operating in all of its ~~oLAR s
600
I
500
phases, a large, expanding, and ~o 0
/'" 400
,
dynamic industrial economy. A 40 0
V
UNITEO STATEScollateral benefit was the fact 300
/'
300
that it drew its working force
/'
\
largely from the Southwest, ab./
200
sorbing in the beginning the un- 200
//
employed portion of the popu/'
5 SOUTHWESTERN STATES,:>••
V·
lation and later those who by
:-',
/'
I 00
reason of the changing economy 10 0
became surplus in their former
occupations. Thus, it may be
"..'
said that the skills and habits of
mind absorbed by the popula40
40
1939
1947
1899
1923
1929
1933
1904
1909
1914
1919
tion of the Southwest during
the past decade represent a most
SOURCES : U,S. BUREAU OF THE CENSUS.
U.S,B UREAU OF LABOR STATISTICS.
important element of the indus* ARIZONA,LOUISIANA,NEW MEXICO, OKLAHOMA,TEXAS.
trial expansion of the period,
for upon these skills can be founded a permanent, efficient, growing industrial structure, utilizing most
effectively the labor force of the area and its abundant natural resources.
..
... .-'
---- .-.
'\.
/"
.-. -'
The performance of the Southwest in the industrial field between 1939 and 1947 can be better
understood after a brief review of some of the important characteristics of manufacturing in the area.
As already pointed out, the growth during the war period was phenomenal in many respects; yet, a
rapid rate of increase is not new to this area for between 1899 and 1947, value added by manufacture
adjusted for price variations rose gradually to a level ten times that at the beginning of the period. This
is double the rate for the Nation, which rose to five times the initial level during the same period.
Nevertheless, the Southwest still has further great potentialities in its vast natural resources, many of
which could be processed profitably within the area and the surplus of finished products shipped to
other areas as a means of deriving funds to expand the area's imports; yet over half the exports of the
Southwest are raw materials, while a large proportion of the manufactures used in the area is imported. '
In addition to rapid growth, a prominent characteristic of manufacturing of the Southwest, which
is common with newly industrialized regions throughout the world and which distinguishes it from the
' F or a discussion of t he " Disposal and Utilization of War Manuf a cturing F acili ties in t he Southwest," see the Mon t hly
Business R eview , March 1, 1948.
2Compal'e " The Interstate and Foreign Commerce of Texas," in the Monthly 8 11. ine88 R eview, July I , 1949.
MONTHLY BUSINESS REVIEW
46
older areas of this country, is the centering of its manufacturng around its natural resources, particularly the petroleum, natural gas, other key chemical raw materials, metallic ores, other materials, and
forest and agricultural resources.' The great abundance
RATE OF GROWTH OF MANUFACTURING
of raw materials offers exceptional opportunities to manufacturing plants carrying on
PERCENT PER YEAR
PERCENT PER YEAR
12
the initial processing operations
I
or to plants where the finished
m!l1899-1909
products are the result of a con1::::::::::::::::::::::1 1909 -1919
tinuous manufacturing process.
10
IO~-----------------------In such industries as industrial
~.·.·.·11919 -1929
organic chemicals, nonferrous
~ 1929-1939
metals, and lumber products,
the manufacturing process
01939-1947 8
stops with the production of
____ 1899-1947
AVERAGE
such intermediate products as
rubber, nylon salts, metals, and
lumber, leaving the fabrication
of finished or end products to
subsequent stages of production.' Other industries of the
area, such as petroleum refining,
4~~H-~+-+-+--meat packing, and canning,
start with the unmanufactured
raw materials and carry the
manufacturing process without
interruption to the finished
product stage. Accordingly,
some 63 percent of southwestern manufacturing is of the~e
two t ypes of r aw material deUNITED STATES
pendent industries, as compared
with about 40 percent in the _ 2
2
Nation. The Southwest does
'------------------------,have some important industries,
SOURCE, U. S. BUREAU OF THE CENSUS .
such as the bakery, printing and
publishing, oil field machinery,
and aircraft industries, which use intermediate or previously manufactured materials in turning out
finished products; but such industries account for only approximately 37 percent of the total manufacturing in the area, compared to about 60 percent in the Nation.
Despite a rate of growth of manufacturing greater than that for the Nation, the Southwest in
proportion to its population still has less than its share of the national total. Manufacturing employment
in 1950 accounts for about one-eighth of total employment in five southwestern states, or less than half
the proportion for the Nation. In 1947, these states had over 9 percent of the population of the country
but under 4 percent of the value added by manufacture, so that the people of the area had only 43 percent of their theoretical share of the national total. Back in 1899 this figure had been 27 percent, while
from 1909 to 1934 it ranged from 32 to 35 percent. During the 48-year period, 1899-1947, the five
southwestern states increased their population by 144 percent and rose to world leadership in oil and
gas production. Despite this large population growth, the Southwest more than kept pace with the
Nation in the per capita rate of growth of manufacturing. This is a notable achievement, since it was
during this period that the United States gained world superiority in manufacturing.
>For a discussion of "The Natural Gas Industry and Its Significance t o Industrial Development," see the Mon thly
U HRin ess R e1}ie1u, March 1, 1949 .
' For a discussion of " The Synthet ic Rubber Industr y in the Southwest," see the Mo nthly BusineB8 R eview, June 1, 1948.
46
MONTHLY BUSINESS REVIEW
GROWT H OF MANUFACTURING IN TEXAS. FIVE SOUTHWESTERN STATES, AND THE UNITED STATES,
1899-1947
Value added by manufacturing
Year
Texas
Total wages of production workers
Number
in ClllT'tot
in 1947
Number of
in ourrent
in IQ47
of
price3
prices
~ uctiOD workeN!
prioes
prices
establishments (milli0080f dollan) (millions of dollars) • (thousands) (milliorus or dollar!) (milliona of dollars) · · ·
.
1899 ... .
. . .. . . . .
1909 . . . . . . • .......•..
1919 .. .... . . • .... . .. .
1929 ... . .. . . .. .. . . ,. ,
1939 .. . .. ...... . .....
1947 . .. . . . . .. . . . . . . . .
Five Southwestern Statcs t
1899 .... . .. ..... .. ...
1909 ... .. ..... .. . . .. .
1919 ...... . . .... ... ..
1929 .... ... .. . .. .. ...
1939 .. ... .... . .. .... .
1947 .. . . .. ... . . . . .. ..
United States
1899 . . . . . .. . . . . . • . • ..
1909 . . ........... . • ..
1919 . . ... . . . . .• . • . •..
1929 ... .. .. .. .. . .... .
1939 .. .... . .... .. . ...
1947 . . . . . . . .. . . ... . . .
•
•
5,390
5,198
5,085
7,128
$
39
95
296
460
449
1,727
S
120
227
330
711
815
1,727
39
70
106
134
125
242
S
17
38
115
152
126
558
S
31
59
158
211
215
558
Wages per produotioll worker
in cl!m!nt
in 1947
(!o'il:!)
prices
(doll!U"lll) " ·
g
$
436
543
1,085
1,134
1,008
2,306
795
843
1,491
1,575
1,720
2,306
•
•
92
225
665
900
789
2,922
285
537
743
1,385
1,434
2,922
87
170
247
269
232
415
36
87
262
298
222
937
66
135
359
413
379
937
414
512
1,06 1
1,108
957
2,258
759
794
1,453
1,535
1,634
2,258
•
4,662
8,192
23,770
30,737
24,487
74,426
14,450
19,580
26,590
47,500
44,800
74,426
4,510
6,273
8,431
8,380
7,808
11,916
1,896
3,210
9,673
10,910
9,090
30,242
3,'179
4,992
13,269
15,111
15,512
30,242
420
5 12
1,147
1,302
1,164
2,538
771
796
1,574
1,803
1,987
2,538
10,981
9,443
8,969
12,234
210,426
206,811
173,802
240,801p
v-Preliminary.
t Arizona, Louisiana, New Mexico, Oklahoma. and Teus•
• Earlier data not clO8ely comparaole t o later data•
... Using Bureau of Labor StatiBtiC8 wnolesa.le price index for marmfacturee, 1014-1047. and for aU commodities. 1899- 1914 •
.. .... Uain~ consumers' price indexes of the Federal Reserve Bank of New York, lS9O-1913,j&Dd Bureau of Labor Statisti ~ 1913- 1947.
SOU RCE: United State! Bureau of the Census.
Another characteristic of manufacturing in the Southwest is the extreme range in size of the plants
in the area. Some of these plants have only one employee, while one aircraft plant now has 14,000 employees, although at the wartime peak, it had 30,600 workers. Value added by manufacturing ranges
from a thousand or so dollars in the smallest plants to about $70,000,000 in the larger plants. Invested
capital per plant ranges from a very small sum to the $165,000,000 reported for the twin Chemical
Plants at Freeport.
The Southwest with its broad distribution of both large-scale and small-scale industries, has a much
higher proportion of the latter than in the Nation. Widely icattered throughout the area are small-scale
enterprises, including bakery, apparel, lumber, furniture, and metal fabricating operations. On the
other hand, the area is well represented in such predominantly large-scale industries as petroleum refining, industrial organic chemical, and aircraft production. In these industries, the newer and more
modern plants, such as many of those in the Southwest, have tended to be appreciably larger than those
in older industrial areas. However, the area has less than its share of plants in certain large-scale industries. including those producing primary metals, paper, textiles, tobacco products, electrical machinery,
and transportation equipment other than aircraft.
During the period between 1939 MANUFACTURING ESTABLISHMENTS BY SIZE OF EMPLOYMENT,
and 1947 there were increases in the
IN FIVE SOUTHWESTERN STATES,· 1939 AND 1947
number of plants in all size groups in
the Southwest. Numerically the larger
Number ofp}aIll8
Inere...
- - - - - - -- -- - -- -- - - - - - - g ains were among the smaller plants, Numbe,in of,mp}oyooo
plant
1939
1947
Number of plants
P ercent
but percentagewise there was a greater
6,791
1,500
22
8,291
increase in the number of the larger 20-99
1- 19 ......
.. ......
.. .. ...
2,990
1,276
1,714
74
489
953
105
464
plants, which had been relatively less 100 and over .. ..
numerous before the war. During this
3,265
Total. ...... .
12,234
36
8,969
period, the number of plants with 100 • Arillon., Louisiana, New Mexico, Okl.&homa. and Texas.
SOURCE: United Statea Bureau of the CensUl, t he bnakdown of UI39 data being adjusted to 1947 basis.
or over employees more than doubled,
reaching a total of 953 in 1947; but in
the latter year there were 2,990 plants
with 20 to 99 employees, and 8,291 plants with less than 20 employees. Thus it appears that, despite the
spectacular large plants, thll manufacturing of the area is still in considerable part a small plant operation. About 40 percent of all manufacturing workers are in plants having less than 100 employees. Only
47
MONTHLY BUSINESS REVIEW
one plant in twelve has 100 or more employees, but these larger plants account for about 60 percent of
total manufacturing employment in the area.
As to productivity per worker, the statistics for identical industries suggest little difference between the Southwest and the Nation. Value added per production worker is slightly higher in the
Southwest in the chemical, meat products, paper, stone, clay, and glass industries, but is somewhat less
in the food products, petroleum refining, textile, apparel, furniture, and primary metal industries.
However, few of these differences are significant. In the petroleum refineries and chemical plants, in
which a high degree of skill is required of workers and in which large investments in capital equipment
have directly increased output per worker, the value added per worker is particularly high. In 1947
such value added per worker in the Southwest averaged over $12,400 per year in petroleum refineries
and over $12,600 in chemical plants. Due to the Southwest's having a higher proportion of such large
plants than the Nation and despite a slightly lower output per worker in such plants, the area had an
average of $7,030 of value added per worker in manufacturing, or 13 percent more than in the Nation.
Excluding the refinery and chemical plants, productivity per worker averaged about 2 percent less in
the Southwest than in the Nation, reflecting the large network of small plants throughout the region
where operations are not always extensively mechanized and reflecting the operation of such highly
seasonal plants as canning and cottonseed oil. The value added per worker is especially low, under
$4,000 per year, in the textile, apparel, and lumber products industries.
VALUE ADDED BY MANUFACTURING, BY INDUSTRY, 1947
(In millions of dollars)
Industry
Arizona
Louisia.n8.
Food products ......................
Meat products ...... ..... ...... . ..
Bakery products ...... . • .. ... . .. . .
Other food products . .... .... ......
Textile ....... . ... . .. .... ...... . .. . .
Apparel. . . . .............. .... .. . ...
Lumber and lumber products .........
Furniture and fixt ures ...............
Paper ...... ... ...... ............ ...
Printing and publishing ..............
Chemical. ........ .. ...... .. . .... . . .
Industrinl organic chemicals ........
Other chemicals ... . .... ...... .....
Petroleum and coal products ..........
Pet roleum refining ....... . .........
Other petroleum and coal products ..
Leather and leather products ..... . ...
Stone, clay, and glass products ........
Primary metal. ........... . .. ... .. . .
Fabricated metal. .. ... . ............ .
Electrical machinery .................
Other machinery ............ . ... . . ..
Oil field equipment ................
Other machinery . .. ............. . .
Transportation equipment ........ . .. .
Instruments . .. ........ . ........•.•.
Other ...... .. .................. • . •.
$ 21
2
4
15
$139
7
15
117
8
19
Total .. . .......................
5104
•
•
13
84
1
5
99
23
113
64
49
122
114
8
•
9
6
n.a.
n.n..
•
•
•
•
4
43
4
•
•
•
•
1
•
2
•
17
2
16
n.a.
7
n ,R.
n.R.
34
•
6p
$694
New Mexico
S 8
1
2
5
•
1
8
•
•
4
14
n.s,
Oklahoma
Taxal
$ 76
17
11
48
n.B..
2
8
4
2
28
12
n,a.
S 338
58
50
230
29
71
96
23
33
92
234
110
124
360
349
n.n.,
n.n..
n.B,
n.a.
78
2
n.B..
•
1
n.a.
1
•
•
•
•
•
n.a.
18p
$55
80
•
23
16
19
n.a.
37
n.a.
n.a.
6
n.a.
28p
$341
11
6
58
58
67
12
130
78
52
92
4
24
51,727
Fi ••
southwestern states
$ 582
85
82
415
37p
93
209
33
134
156
379
n.a.
n.R.
562p
541p
21p
6
103
119p
107
12p
174
n.n..
n.a.
133
4p
78p
$2,921
United States
S 9,022p
1,281
1,1Olp
6,640p
5,334p
4,423p
2,513p
1,379p
2,875p
4,269p
5,360p
1,551
3,809p
2,293
1,494
799
1,485p
2,307p
5,775p
4,918p
3,894p
7,814p
171p
7,643p
5,860p
1,080p
3,825p
$74,426
p-Prtliminary.
• Under
O,~
miUion dollars.
D.a.-Not available.
I
SOURCE: United State. BUlI)8u of tbe Census.
In 1947, ~8 percent of the manufacturing in five southwestern states was in Texas; Louisiana was
second with 24 percent, and Oklahoma third with 13 percent. Arizona accounted for nearly 4 percent
and New Mexico over 1 percent. Not only is there considerable concentration in certain states, but most
of the manufacturing in those states is concentrated in a few counties. In 1947, more than half of the
manufacturing production workers of Texas were in four counties-Dallas, Tarrant (Fort \\'7ortn),
Harris (Houston), and Jefferson (Beaumont, Port Arthur). The latter two counties are included in the
Gulf Coast area which is one of the outstanding industrial regions of the Nation. Nearly half of the
Louisiana manufacturing workers were in the New Orleans Metropolitan Area and East Baton Rouge
Parish. In Oklahoma, Tulsa and Oklahoma Counties had half of the State's industrial workers; in New
Mexico, Bernalillo (Albuquerque) and Eddy (Carlsbad) Counties had nearly half; while in Arizona,
Maricopa County (Phoenix) had over half. Counties in the Eleventh Federal Reserve District having
48
MONTHLY BUSINESS REVIEW
considerable manufacturing in addition to those already mentioned include: in Texas, Bexar (San Antonio), El Paso, and McLennan (Waco); and in Louisiana, Caddo (Shreveport). Considerable manufacturing is also carried on in the smaller cities, as evidenced by the fact that in 1947 there were 70
counties out of the 440 in these five states which had over 1,000 manufacturing workers.
VALUE ADDED BY MANUFACTURING, BY INDUSTRY, 1947
(PERCENTAGE DISTRIBUTION)
ARIZONA
LOUISIANA
NEW MEXICO
TEXAS
5 SOUTHWESTERN
STATES
UNITED STATES
OKLAHOMA
~FOOD
f:·:·:·:·:·:·:l
LUMBER
b$i;!1
PAPER
~ CHEMICAL
_
rnm
PETROLEUM REFINING
PRIMARY METAL
~ MACHINERY.
D
OTHER
SOURCE: U. S. BUREAU OF THE CENSUS.
There is also a tendency in the Southwest toward concentration in a few industries, with the top
two or three industry groups in the state usually accounting for at least half of the total value added
by manufacture. While the list of leading industry groups varies some from state to state, the food
products group was important in each of the five states in 1947, and accounted for 20 percent of the
total. Petroleum refining and chemical industries, which are particularly important in Texas and
Louisiana, accounted for 18 percent and 13 percent, respectively, of all manufacturing.
While the Southwest had less than its share of most types of manufacturing in 1947, it had more
than its share of petroleum refining, oil field equipment production, and industrial organic chemical
production. On the basis of population, the five states of the Southwest had nearly four times their
share of petroleum refining, with Texas having over 4.7 times its share. Texas also had over 9 times its
share of oil field equipment production. Louisiana had nearly twice its share of lumber and lumber
products industry and of the paper and paper products industry. Both of these industry groups are
based upon the raw material resources of the area.
The foregoing discussion of industrial growth in the Southwest between 1939 and 1947 and of
the present major characteristics of manufacturing in the area has raised certain broad questions concerning the reasons underlying the pattern of industrial development over the first half of the Twentieth Century and the prospects for future development. At the outset, however, it may be stated that
the same factors that were conducive to the development of industry prior to 1939 in a large measure
were responsible for the war and postwar growth and will be the motivating forces in future growth.
49
MONTHLY BUSINESS REVIEW
VALUE ADDED BY MANUFACTURING, PERCENTAGE DISTRIBUTION BY INDUSTRY, 1947
(Percentage distribution)
Industry
Arilona.
Food products ................... ...
Meat products ......... . ..• .. . ....
Bakery products . .. . ....•... ... ...
Other food products ........... ....
Textile . .. .................... .... ..
Apparel. . ....... . . . . ..... .. .. . .. ...
Lumber and lumber products ..... ....
Furniture and fixtures .......... .. ...
Paper ....... . ......... . ...
Prmting and publishing ........... . . .
Chemical. .... . .................. . . .
Industrial organic chemicals ..... ...
Other chemicals ............. . .. ...
Petrolcum and coal products ... .. .....
Petroleum refining ... . .............
Other petroleum and coal products . .
Leather and leather products .. . . . ....
Stone, clay, and glass products ........
Primary metal. . . ...... . ..... . . .... .
Fabricated metal. ....... ...... ... . ..
Electrical machinery . ........... . . .. .
Other machinery ......... . . . . ..... . .
Oil field e~ipment ............... .
Other mac inery ....... .. ...•.... .
Transportation equipment .. ....... • . •
Instruments ........... .. ...........
All other . .. . . . ..... . . . . . . . . . .
Total .. . ....
20.0
2 .0
3.6
14 .4
Louisiana.
3.2
.9
33.6
8.3
......... .
100 .0
100.0
100.0
100.0
100 .0
n.R.
n.R.
3.5
41. 7
3 .5
2.4
.3
2 .3
n.s.
1.2
14.9
.8
6.9
24.8
.6
2.3
1.2
.6
8.2
3.5
n.8..
n.s.
n.a.
n.8..
n.n..
n.R,
n.s.
.1
1.9
23.4
22.8
.6
n.n.
1.4
6.7
4.7
5.6
.2
10 .8
n.s.
n.a.
n.a.
n.a.
n.s.
n.s.
n.8..
n.R.
n.a.
n.8..
1.0
.7
22.3
5.0
3 .2
14.1
Texas
.
8.4
5.6
14 .2
2.4
3.9
7.9
Oklahoma
19.6
3 .4
2.9
13 .3
1.7
4.1
5.6
1.3
1.9
5.3
13 .5
6.3
7 .2
20.8
20.2
.6
.3
3.4
3 .4
3.9
.7
7 .5
4.5
3 .0
5.3
.2
1.5
.3
12.1
1.0
20 .0
1.0
2.2
16.8
1.2
2.7
12.1
.7
14.3
3.3
16.3
9.2
7. 1
17 .6
16.4
1.2
New Mexico
4.9
n.iL.
1.8
Five
8Ou~bwest.ern
states
United Sta.tes
19.9
2.9
2.8
14.2
1.3
3.2
7.2
1.1
4.6
5.3
13.0
4.6
.1
2 .6
12.1
1.7
1.5
8.9
7.2
5 .9
3.4
1.9
3.9
5.7
7.2
2.1
5.1
3.1
2 .0
1.1
2.0
3.1
7.8
6.6
5.2
10.5
.2
10.3
7.9
1.5
5 .0
100.0
100.0
n.R.
n.s.
19.2
18.5
.7
.2
3.5
4.1
3.7
.4
6.0
n.S.
n.8..
n.a.-Not. Available.
SOURCE: United States Dureau of the Cenl!ua.
As has already been suggested; the past developments and future prospects are closely related to
the natural advantages of the area and its wide variety and abundance of raw materials basic to industrial development in any area. Among the natural advantages, the climate and open spaces of the
Southwest have been significant attractions for numerous industries and may become even more important in the future. Prior to 1939 oil refineries, chemical plants, and similar structures in the Southwest were built with little or no walls, roofing, weatherproofing, and pipe insulation-much less than
were required in most other sections of the country. The resulting savings in costs were important in
MANUFACTURING, IN RELATION TO POPULATION, BY INDUSTRY, 1947
(Percent of U.S. value added by manufacturing for each industry divided by percent of U.S. population)
Industry
Arizona
Food products ....... ..... . .........
Meat products ........ . .....•. . .•.
Bakery products .. ..... . . . . . ......
Other food products .... . ....... . . .
Textile .............. ........ .....
Apparel. . .... ........ . ............ .
Lumber and lumber products ..... .. ..
Furnit ure and fixtures . . .............
Paper . . . . .. ...... . ...... ....... ....
Prmting and publishing . . ............
Chemical. .......... . ...............
Industrial organic chemicals .... . . ..
Other chemicals ..................
Petroleum and coal products .......
Pet roleum refining ... . .............
Other petroleum and coal products ..
Leather and leather products .........
Stone, clay, and glass products . . . .....
Primary metal. .................... .
Fabricated metal ... . . . ............. .
Electrical machinery ......... .. .•. . . .
Other machinery. . . . . . ...........
Oil field equipment ..... . ... . .. ....
Other machinery . . . . ...
Transportation equipment .. ..
Instruments ...
. , . ... . . .
.
Total .. .....
n.a.-Not available.
SOURCE: United States Burea.u of the CCIlSUS.
51
35
77
52
1
112
17
Louiaiana
87
31
77
99
8
24
188
20
194
30
119
233
73
300
430
56
1
42
2
18
New}{exico
23
27
51
17
4
86
8
Five
Oklahoma
Te"""
53
84
63
45
76
92
92
70
n.a.
H
3
20
18
4
41
32
77
34
23
1
n.o..
33
1
n.o..
n.B.
n.s.
43
88
143
66
307
472
28
8
51
20
27
6
34
921
14
32
7
31
52
19
29
47
47
24
n.o..
39
165
17
23
68
n.o..
14
n.a.
n.a.
n.a.
n.o..
n.o..
n.a.
1
12
n.o..
4
219
328
16
63
18
24
n.o..
30
5
n.a,
n.R.
D.O..
3
6
80uthwestern states
United State.
4
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
43
100
71
73
82
67
8
23
91
26
51
39
77
n.a.
n.o..
268
396
29
4
49
23
24
3
24
n,n..
n.s.
25
60
MONTHLY BUSINESS REVIEW
peacetime and were doubly so during the war when such costs represented scarce materials, as well as
valuable construction time and effort.
Admittedly, such climatic advantages are less important than the availability of petroleum and
natural gas; but when the more important factors are about equally balanced, as between two possible
locations for such a plant, climate may determine the location.
After the war these same advantages, as well as. raw materials, were especially important in
attracting and facilitating the erection of numerous installations in the expanding chemical industry.
In the case of many other industries, including the large new food products plant at Corpus Christi,
the mild climate and ample availability of space have been found similarly advantageous, though raw
materials and transportation have been more important locational considerations.
In a slightly different way these factors also were important advantages to the new aircraft industry which was established during the war and retained to a considerable degree after the war. The high
proportion of good flying weather, the topography of the area which assured a high degree of visibility
and relative freedom from obstruction hazards, and the abundance of land suitable for factory sites
and landing fields were important positive attractions which reinforced the desire of the Government
to have such new defense plants located away from the great industrial centers of the Northeast.
The large, thinly populated, open spaces of the Southwest were also important during the war in
that they permitted the construction and operation of explosive and shell loading plants with relative
freedom from hazards from enemy attack and danger to the population in the surrounding area. These
factors still operate as a natural advantage to some phases of the chemical industry.
The existence of and access to a wealth of natural resources not only have been basic to the growth
of manufacturing in the area but have determined the direction of the industrial development and to a
considerable degree its rate of growth. The accompanying table which presents data classified according
to industry dependence upon southwestern raw materials is illustrative of the major industrial development of the area. There are two groups of industries accounting for roughly two-thirds of the area's
industrial production which are directly related to the availability of raw materials. The first group had
its roots primarily in and received its impetus from the fact that the raw materials were too bulky to be
transported economically to plants outside the area for processing. It includes the important building
materials and supplies industries, such as saw mills and planing mills, cement, cement and gypsum products, brick and other clay products, glass, iron and steel and related products; the important food
products industries, such as dairy products, canning, and preserving; the carbon black industry; and
cottonseed products industry. The second group is based upon raw materials produced in the area although the materials themselves might be shipped economically to other areas for processing. It includes
meatpacking, grain mill products, and bakery products in the foods industry; the important petroleum
refining and chemical industries, as well as the industries closely related to them; certain metal industries; and some miscellaneous industries, such as textiles, mill work and other lumber products, furniture
and fixtures, paper, and paints. The third and fourth groups are largely independent of southwestern
raw materials but they must rely either largely upon the regional market or primarily upon the national
market including the distribution within the area. Such industries as beverage, ice, miscellaneous food
products, printing and publishing, rubber goods, electrical machinery, oilfield machinery and tools, and
motor vehicles are almost wholly dependent upon the area market for their distribution. On the other
hand, the output of the apparel, leather, shipbuilding, and aircraft industries is sold on the national
market, even though a significant part of the output may be taken within the region.
In the first group of industries, the market for the finished products through the years has been
strong enough within the area to bring about an expanding productive machine and to make the
growth solid as well as rapid. This past growth has revolved around the expansion of population and
the vitality of the construction industry-factors which should continue important. The second group
which has been favored by the physical conditions of the area, the type and character of available raw
materials and good markets includes some of those very dynamic industries whose operations are associated with intense research for the improvement of existing products and the development of new
ones. The third and fourth groups whose operations are largely independent of southwestern raw materials rely wholly or partially on southwestern markets for the distribution of finished products. Their
past growth has been related to population, per capita consumption, and income of the area.
51
MONTHLY BUSINESS REVIEW
This review of the factors behind the development of these various groups of industries suggests
the probability of sustained future growth in southwestern manufacturing. While such progress
depends upon continued effort by the business community, the rewards should provide sufficient incentive to attract leaders with ene.rgy and vision. With the expansion of manufacturing, the farmer, miner,
GROWTH OF MANUFACTURING INDUSTRIES IN FIVE SOUTHWESTERN STATES CLASSIFIED BY
DEPENDENCE UPON SOUTHWESTERN RAW MATERIALS, 1939-47
Value added by manufacture
(thou8&Ilds of dollars)
Number of production worker'll
I. Industries based on sout hwestel'l1 raw materials ...
A. Indust ries using chiefly raw materials which
could not be economically shipped out ... . ... .
Dairy products .......... . .... . ... . ..... . .
Canning and preserving . .. . . . .............
Sawmills and fl aning mills ..... . . . . . ... . ...
Cottonseed oi mills . .. ............ . . . ...•.
Carbon black .. . .... . . . ......... ... .. ....
Glass . .. .. .......... . . . . .. . . ... . • . • . . . . .
Cement .. . . . .. . . . . .......... . ... . .. . .. . .
Cement and gypsum products . . . . . ... .. . . ..
Brick and ot her clay products .... . . . ... . . . .
Iron and steel foundne•... . .. ..... .... .. ..
Prima ry nonferrous metals .. .. . ..... . ..... .
E. Industries using chiefly raw materials which
could be economically shipped out . . .. . . ... . .•
Meat packing .. . ......... . . . . . ...... . . . ..
Grain mill products .... . ........ . .. . ... • . .
Bakery products .. ........ . . .. . ........ . .
Textile .... . ........... . .... . .... .. ......
Millwork and other lumber products ....•...
F Ul'l1iture and fixtures .... . . . . . . .. . ....... .
r:Sl~~t;i~i ~h~~i'c~i~; ~~g~~i~·. :: : : : : :: : : : : : :
Industrial chemicals, inorganic . . . .. . . . .. . ..
Fertilizer .. . .. . ....... ... . ....... . . .. .. . .
Soap .......... . . .. . ..... . ....... . . . .....
Paint . . . .... . . ... .. . . .. . . . . .. . . . . ... ....
Petroleum refining . . ... . ..... .. . . ... . ... .
II. Industries largely independe nt of soutb western
raw materials . ..... . ....... . .. ... . . . . .. .. .. ..
A. Dj;endent on sout hwestern market . ... . ... . ..
everagcs . .. . .... . ....... . .. . ... . . . . .. . .
Ice ... . . .. ..........
..... . . . . . .
Ot her food produc ts. . . .
. . • .. ..... ..
Printing and publishing ..... . ... . . ...... ..
Rubber ~oods . .. . . . . . ...... ..... .... . . .. .
E lectrica machinery ... . . . . . .. . . . .. . ......
Oil field machinery and tools ..... . .. . . . . • . •
Motor vehicles . .
. .. . . . . . . . . .
Fabricated metal products ............ . .•.•
Inst ruments ... . . ................. . ...•. .
Machinery, other . . . .. . . . . . . ... . . . ... . . . . .
Miscellaneous . . .. ......... . .. - . .... .....
B. Dependent on national market ......•... . . . . .
Apparel. . . . . ....... . ..... .... . . ... .. . . . .
Leather . ... .. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shipbuilding .. . . .. . . ... . . . . . . .. . . . . . ... ..
Aircraft ... ... . . .. . .. ... .... . . . ... . ..... .
All manufactures ... . ...... ....... . ....... ... . .. .
Percent change
1939
1917
1939
1947
153,455"
295,333-
92
$470,000-
$1,864,667-
297
61 ,4552,828
6,434
32,400'
4,8001,411
1,200'
1,631
2,551
1,312
5,888'
95,5733,228
9,787
46,000'
4,204
2,285
2,690
2,000'
4,542
3,105
3,417
14,315
56
14
52
42
-12
62
169
67
178
22
160
143
145,00014,655
3,700"
43,960
13,111
6,469
1,595
8,791
5,184
3,527
461,000 20,387
31,737
136,000 '
35,845
35,726
15,054
21,000'
26,026
11,114
13,932
115,000-
218
39
748
210
173
452
843
139
401
215
92,0009,414
5,548
11,454
9,70012,8004,546
9,084
n.B.
1,349
716
40
370
26,300-
199,760'
14,898
10,092
10,690
10,10017,000'
7,760
16,547
10,782
3,850
1,397
573
871
45,200-
117
59
82
-7
4
33
73
81
325,000'
52,000'
16,30035,156
12,030'
18,265'
9,616
31,937
78,879'
n.s..
4,016
2,700'
11,816
11,235
120,052'
n.a..
7,357
5,600·
18,638
18,705
989
2,000'
11,000n.a.
17,732
830'
14,1747,500-
1,000"
n.s .
5006,000'
n .s .
7,109
1605,160'
4,800'
Percent. cbange
n .s.
185
95
1,332
135
72
52
n.s..
83
107
58
67
n .n.
300
83
n.s.
143
418
174
56
n.a.
n.B.
n .a .
n.n.
1,995
37
2,852
153,000'
319,097'
n.a.
40,10016,657
30,647
60,237
n .a.
2,00033,784
n .a.
23,700'
35013,71611,000'
n.a.
1,403,66784,631
108,872
82,634
37,00073,000'
33,487
134,000'
174,000'
33,852
12,971
15,092
73, 128
541,000'
1,057,342n.n.
82,475
38,700131,938
155,504
n.a.
12,000'
80,000 '
n.a.
106,110
5,00094,000 '
85,000 '
n.a.
93,499
6,222
46,808
n .B.
n.a.
332
63
577
135
208
300
239
319
n,o..
n.&.
550
40,6~9
2,460
254
232
n.a..
106
135
330
158
n.a.
500
137
n.a.
350
1,329
585
673
n.l;I..
n.n..
n.a.
27,426
1,530
10,208
88
137
750
n.R .
D. a.
n .R.
n.a.
n.s.
D.a,
232,334
415,385
79
789,097
2,922,009
270
n.a.
14,625
657
1,200-
20,567
1,434
5,674
350
333
725
a.a.- Not avllilable.
• Partly estim&ted.
SOURCE: United States Bu.-eltl.U of the CemllS.
oil producer, and lumberman each will find within the area a larger and more profitable market for his
products. The skills of a larger working population will tend to find the most profitable employment,
while capital and managerial ability reap greater rewards. The trade and financial community generally
will grow with the industry of the area. As more of the wealth of southwestern raw materials is made
into semi-finished or finished products within the area, a well-rounded and diversified economy will
result. Moreover, as manufacturing plays a greater part in the economic life of the area, the economy
of the Southwest will become even more dynamic-research, technological progress, capital accumulation, rising population, increasing skills and "know how," expanding markets, and trade will all reinforce each other to increase further the income and standard of living of the people.
62
MONTHLY BUSINESS REVIEW
Review of Business. Industrial, Agricultural, and Financial Conditions
DISTRICT SUMMARY
The strong demand for merchandise at department stores
in the Eleventh Federal Reserve District which became evident in December persisted through January and the first
half of February. Although sales in January were off slightly
more than seasonally from the record December volume, they
exceeded the total for January last year by 5 percent. The
demand for durable goods, which was very slow a year ago,
was at a high level in January this year. Furniture store sales
were also sharply higher than in January 1949.
The value of construction contracts awarded in the District declined 7 percent from the large amount reported in
December, but exceeded the relatively small volume in January 1949 by 44 percent. Residential awards, while smaller than
in December, were only slightly below the relatively high
monthly average for the last six months of 1949 and were
nearly double the volume in January last year. There was a
substantial increase in awards for public works and public
utilities projects.
.
Petroleum production and refinery operations in the District
and in the Nation during January reflected only moderate
changes from those in the preceding month, but operations
were sharply lower than in January 1949. The over-all demand
for petroleum products, which has been fairly well sustained
for this season of the year, exceeded production during January
causing a further reduction in supplies On hand at refineries.
Crude oil stocks also declined in January, dropping to the
lowest level since the fall of 1948.
Heavy precipitation over most of the District during January and early February greatly benefited winter cover crops,
pastures and ranges, but delayed field work. In the winter
wheat belt, where crops and ranges are still suffering from
inadequate moisture, rains are urgently needed. In other areas,
such crops as oats, flax, and commercial vegetables generally
are making fair to good progress, despite the effects of unfavorable weather. Harvesting of citrus fruits in the lower
Rio Grande Valley is virtually completed. Livestock are in
good condition in most areas where grazing is available. Substantially larger stocks of wheat and feed grains were on hand
in the District on January 1 this year than a year earlier.
Meanwhile, more sheep and lambs and fewer cattle were on
feed in this section. The average of farm commodity prices
in Texas continued to hold relatively stable through January,
although seasonal changes in prices of individual commodities
were ' evident.
Aggregate deposits of weekly reporting member banks in
the District showed relatively little net change during the
period between January 11 and February 15. Although the
loans of these banks showed a further moderate increase during the period, the gain was largely offset by a reduction in
their investments.
BUSINESS
The improved tone in consumer buying which developed in
December carried over into January. Although department
store sales in the Eleventh Federal Reserve District showed
a little greater-than-seasonal decline from the record December sales, the dollar volume in January was 5 percent larger
than in the corresponding month of last year and almost
equaled the peak January volume reached in 1948. Last month
was thus the second successive month in which sales exceeded
year-earlier levels, following the year-to-year decline which
had prevailed in the first 11 months of 1949. The favorable
showing in January tended to confirm the optimistic forecasts which generally have been made regarding prospective
department store sales during the first 6 months of this year.
It should be noted that department stores in this District did
better than in the Nation as a whole, although sales in other
districts, for the most part, were not discouraging.
Veterans' insurance refunds, the distribution of which was
begun at the middle of January, undoubtedly helped buoy
department store sales in January, and their stimulative effect
can be expected to be most noticeable during the next 3
or 4 months. Nevertheless, it is not unlikely that the insurance refunds will t end to have a favorable effect On retail
sales during most of the current year. Veterans apparently intend to use more than half of their refunds to payoff debts
or to increase their bank accounts, according to recent surveys of the National Industrial Conference Board and Tbe
New York Times. While such action, if it occurs, would not
immediately increase sales, the resulting improvement in the
veterans' financial position might lead ultimately to heavier
buying.
WHOLESALE AND RETAIL TRADE STATISTICS
- - - Percentage cbange in - - - - Net sal"
Stocksl-Jan . 1950 from
Jan. UI50 from
Retail trade :
Department stores:
Tolal Eleventh District.. ..... . . . ....... . .
Jan.
1949
Dec.
1949
;
7
-66
CQrpus Christi ••..• " .•.•.••••••.. . .....
Dallll8............................ .
Fort Worth ........ ,., ....... .. ... .
Houston .. .•...•.•••. •.•.•.• . . •.•.
SanAntonio ..... , ....•........•...•
-
6
- 57
-55
11
-66
4
-2
13
Furniture stores:
Total Eleyanth District. . .. . . . . . . . . . . . . . . . .
-
Dec.
1949
1
4
3
11
6
- 5
-
4
7
7
- 56
-49
-62
-57
2
~~~e~~.~~::::~ ::::: :::: :::::::
Jan.
1949
-I
-
a
3
-6
-7
-28
-1
-13
3
16
30
-39
-37
-43
-20
-4.
-32
-26
4
-16
2
Automotive supplies .. . ........ , .. " ... ,,,. .
10
-3
Drugs and sundries .. .. ...... , . . . . . . . . . . . . . .
Dry goods ... " . . .... . . . . . . . . . . . . ... . . . . . . .
Grocery {fuU.line wholesalers not sponsoring
groups) .. . . . .. . .............. "... ... . . .
1
-12
-20
6
17
2
-2
8
- 13
21
- 18
-27
1
12
12
7
-4
2
22
Da1.1a.s ••.•.••••••••• ... .•..• •••••• •• •• . . . . .
21
23
Howton ...... ... .... ......•.... .•.• .. ... . .
Port Arthur ... ,. . .......... . .. .... . .
San Antonio" .. .. ...... , • . • . •.• , .. . ...... .
Wichita Falls .•.•. " ...... . .•.•.• . • , • ' • ' •. ..
Wholesale trade:·
-3
Hardware ... .... .. ..... . .. , ... ,.. .. ........
Machinery equip. and lIupplies except elect. .. . .
Tobacco..............................
..
-
12
41
-,
7
2
5
-21
7
36
-17
-49
- 1
Winea and liquors.... . .. .. . . .. . . . . . . . . .. .. . . -38
Wiring ~uppliel!. construction materials distr.. .
14
-6
f Indicates change of less than one·half of 1 percent.
• Prp1iminary data. Compiled by United States Bureau of Census.
; Stocks at ead of month.
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
D<li!y averoge sales - (1935-39= 100)
. . - - - Unadjusted·
Jan.
Df'o.
Nov.
1950
Eleventh District .....
315
Da,llM .• . .. •. ..••••• • 291
HOUbLon••.•. •. •••••• 347
1949
662,
602
730r
1949
442
405
483
J an.
1949
307r
277
364r
Jan.
1950
398
355
445
Adjusted
Dee.
Nov.
1949
1949
404,
381
459
371r
335
400
Jan.
1949
388,
338
467r
STOCKS - (1935-;39 -1(0)
---Unadjusted·-------Adjusted - - - Jan.
Dec.
Nov.
Jan.
Jan.
Dec.
Nov.
Jan.
1950
1949
Eleventh District..... 331
323
~Re~~ for seasonal variation.
1949
405
1949
346
1960
356
1949
351
1949
365r
1949
372r
In contrast with the widespread and general clearance sales
which marked the efforts of merchants in January 1949 to
reduce and balance their stocks, promotional and clearance
53
MONTHLY BUSINESS REVIEW
sales this January were confined largely to miscellaneous
items and to the usual sales of the season on white goods,
furniture, and housC£urnishing s. Furniture promotions, in
particular, appear to have been very well received, with the
volume of consumer purchases at reporting department stores
in the District attaining the highest level on record, exceeding
December sales by 21 percent and January a year ago by 39
percent. In fact, sales of most consumer durable goods made a
very good showing in January. Major household appliance
sales were up 49 percent from year-earlier levels; radio, phonograph and television were up 42 percent, and domestic floor
coverings, 17 percent. While a major factor in these large increases was the sharply depressed level of consumer durable
sales at this time a year ago, nevertheless, durable sales this
year may be characterized as good according to any standard.
Soft goods departments, which a year ago had not shown the
weakness evident in the durable goods departments, failed to
reveal the spectacular increases in January noted for the hard
goods. On the whole, however, sales of soft goods were generally satisfactory. Sales of women's dresses were up 5 percent, in contrast with substantial year-to-year declines apparent in the previous 9 months. Moreover, men's clothing
sales showed an increase of 2 percent over the relatively high
volume of January a year ago. On the other hand, women's
and misses' coats and suits continued to show weakness, with
sales down 12 percent from a year ago, and basement store
sales were off the same percent, continuing the softness which
developed in the last half of 1949.
Instalment selling at District department stores continued
in heavy volume in January, reflecting the sustained high
sales volume of consumer durable goods which are usually
sold on a deferred payment basis. The proportion of instalment to total sales was 11 percent, as compared with only 6
percent in January 1949. Instalment sales a year ago, however, were restricted by tighter credit terms under Regulation
W, as well as by a slump in consumer durable goods purchases.
Collections dropped to 14 percent of instalment accounts outstanding from 16 percent in December. While a decline in the
collection ratio is usual at this time of year, a lengthening in
terms and a slowing in collections is evident in the fact that
the January collection ratio was 4 percentage points lower
than in the same month a year ago, and was the lowest for
any month since February 1942. The proportions of cash sales
and regular account sales to total sales were off moderately
from a year ago, while the ratio of collections to regular accounts outstanding showed the usual decline for January, and
was the same as a year ago.
Department store stocks at the end of January were approximately at the same level as on the corresponding date of
last year and orders outstanding were 6 percent higher. January marked the first month in the past year that stocks were
not below year-earlier levels, as well as the first in the past
18 months in which orders outstanding were above the levels
of the same date of the previous year. These developments indicate the change which has occurred in the department store
inventory position during the past year. A year ago, stocks
were unbalanced and excessive in light of the declining sales
trend; this year stocks appear to be in much better balance,
and with the immediate outlook for sales more favorable, the
stock position of stores generally appears to be sound. It should
be noted that both stocks and orders outstanding, after adjustment for seasonal variation, ace considerably lower than
the peak postwar levels.
Fucnirure store sales in the District, although declining seasonally in January, were about one-fifth larger than the depressed level of January a year ago and only 1 percent lower
than the January 1948 volume, which was the highest for
that month on record. A significant development was a moderate increase in cash sales in January as compared with the same
month a year ago, the first such increase in 2 years. Moreover,
the proportion of total sales represented by cash sales, 16 percent, was higher than in any month during the past year,
and may reflect in part the influence of the veterans' insurance
refunds. Instalment sales, however, continued in heavy volume, exceeding the level of a year ago by 25 percent. Moreover, although collections were up slightly from December, accounts receivables outstanding continued to rise, reaching a
new peak at a level 31 percent above that of a year ago. Furniture store stocks were down for the third successive month
and at the end of January were 7 percent less than on the
same date of last year.
AGRICULTURE
The January and early February rains, snow, or sleet which
covered most of the farming areas in the Eleventh Federal Reserve District delayed land preparation and the planting of
early spring crops. On the other hand, the abundant moisture
supply resulting from the rains and snows benefited greatly
the winter cover crops. In the important winter wheat belt
of northwest Texas and adjacent areas of New Mexico, neardrought conditions continue to adversely affect winter wheat
and livestock ranges. While no serious damage to the wheat
crop has resulted thus far from the lack of moisture, rain is
urgently needed to insure a satisfactory wheat crop. Small
grains generally are making excellent developments in other
areas although there has been some green bug damage to oats
in north central Texas. The Texas flax crop is making satisfactory progress with good yields in prospect. Cover crops
and grain pasrures in the central and eastern parts of the
District are supplying good grazing for livestock, and animals
in these areas are holding up fairly well.
Conditions in the commercial vegetable areas were mostly
unfavorable during January and the first week of February;
moisture supplies were inadequate in some areas and temperatures at times were too warm for some of the hardy type,
leafy vegetables. Cloudy and misty weather at other times
was unfavorable for some spring planted crops while blight
caused considerable damage to onions and tomatoes. At midFebruary, however, conditions were beginning to improve following the generally heavy rains over the non-irrigated commercial vegetable areas near Corpus Christi and Raymondville
and in the western part of the Lower Valley. The improvement in moisture supplies greatly benefited leafy and root
crops and is expected to result in better seed germination in
some of the early planted tomato and watermelon fields.
Meanwhile, the planting of cantaloupes and cucumbers also is
expected to start sOOn. Most tomato seed beds in the East Texas
area had been planted and some sweet potatoes were bedded.
Transplanting of the north Texas onion crop was delayed
further by wet fields in practically all areas.
The Texas grapefruit production is estimated at 6,500,000
boxes, compared with 11,300,000 boxes harvested last seaSOn
and a 1947-48 crop of 23,200,000 boxes. Reports show that
some 80 percent of the crop was harvested by February 1 and
harvesting should be completed by the end of that month.
Grapefruit prices, which for this season have been running
54
MONTHLY BUSINESS REVIEW
well above those in comparable months of last season, are
expected to remain relatively high for some time as available
supplies are smaller than a year ago. Orange production in
Texas is estimated at 1,600,000 boxes- less than one-half
last season's harvest and less than one-third of the 1947-48
crop. Growing conditions in the citrus producing areas were
favorable during January and early February with irrigation
and light rains supplying adequate moisture. Most groves that
had been pruned since the January 1949 freeze and had received good care have made excellent recovery. Trees began
blooming in late January, signaling the prolific blooming
period which usually occurs around the first of March.
STOCKS OF WHEAT IN ALL POSITIONS, JANUARY I, 1950
(In thousands of bushels)
ern, and southern parts of the District. Hay, grain, and roughage supplies are adequate to abundant in most areas. Ie. the dry
High Plains counties, it has become necessary for many farmers and ranchers to reduce the number of livestock because of
insufficient grazing.
Livestock have held up well this win ter in mo~t sections
of the District having had the benefit of generally favorable
weather and adequate feed supplies. Supplemental feeding became general during t he period of cold weather around the
first of February but later was confined largely to the dry areas
of the High Plains. Losses of livestock resulting from weather
conditions have been negligible. Ranchers are holding back
large numbers of heifers and young ewes for restocking.
CATTLE AND SHEEP ON FEED, JANUARY 1. 1950
(Thou Jamh Dr bead)
----On rarms,-_----<Ofl' farm, ..
, - --Total Bt.oeks_
Stat.
1950
84
1949
129
445
10,647
11.313
Total.... .. .. . . . ....... 22.489
United Stoteo ............ 327.230
~~:~~~:::::::::::::::
New Mexico .••••••••••••
Oklaboma ••••.•• . . . • . •••
Te:l88 ••••• , ' •.•. ..• .• •••
697
10,886
8.866
1950
300
841
1,695
60.927
67,913
1949
268
1,220
747
38,745
38.580
1969
384
841
2,140
61.574
69,226
1949
397
1,220
1,444
49,631
47.446
20.578
391,3i9
111,676
580,876
79,560
477,095
134,165
9OS,I06
100.138
868,474
SOURCE: United States Department of Agriculture.
Total stocks of wheat in the states lying wholly or partly
within the Eleventh Federal Reserve District were 34 percent
higher on January 1 than those of the same date in 1949, as
shown in the accompanying table. Increases occurred in each
of the states except Arizona and Louisiana where small declines were reported, Stocks of wheat on farms were up 9 percent but represented only 17 percent of all stocks, as compared
with 21 percent last year. The five-state total of wheat stocks
in off-farm positions-mills, elevators, warehouses, etC.-was
up 40 percent as compared with a year earlier, Total stocks
of wheat in the United States on January 1 were up 5 percent
-the net result of an increase of 22 percent in off-farm stocks
and a decline of 16 percent in stocks stored on farms.
STOCKS OF SELECTED FEED GRAINS IN OFF.FARM POSITIONS
JANUARY I, 1950
(In thousands of buoheb)
Corn
Stala
1950
16
Oala
Grain IJOlghuml
1950
65
62
25
335
1,308
1949
1950
28
1,35g
4,275
3.640
United States ............ 428.385
56,325
93.418
SOURCE: United Stat.. Departmenl of Agrieult"",.
1,26~
AriIODa••••••••••••••••••
Louwana .. •.• .••..
NeW' Mf'xieo . ••.• . •••••••
Oklahoma . • •••••••••••••
o •••••
Texu ........... . .......
Total ... . .. .. ..........
1,240
17
662
2,431
1949
16
1,449
35
451
1,690
-1.785
-
4
75
375
787
46,167
2.278
2.409
30,945
1949
1,150
0
615
1,116
19,756
36.987
51,618
22,637
33,235
Combined stocks of feed grains in off-farm positions in the
five states on January 1 were considerably larger than a year
earlier. Stocks of corn were up 17 percent, due almost entirely to increases in Oklahoma and Texas. Stocks of grain
sorghums were up 63 percent, with increases reported in each
of the states except Louisiana. Total stocks of oats and barley
in the five states were up 9 percent although most of the increase resulted from the larger stocks in T exas. The increase
in stocks of feed grains in the United States, which on January 1 were two and one-half times as large as a year earlier,
was reflected entirely in off-farm positions since stocks of
feed grains stored on farms were slightly smaller.
Spring range feed prospects improved over most of the District during January and early February as a result of the
increased moisture supplies, the principal exception being in
the High Plains of Texas and New Mexico. Small grains, rescue grass, and clovers are making good growth in central, east-
CattSe on reed
1950
59
0
17
56
161
Sheep Otl reed
1949
62
0
33
70
1950
Total.... . .. .. .............
292
309
Uruled Stateo. .... . ..... ... ..
4,652
4,530
SOURCE: United St,a~ Deparimout of Agriculture.
206
3.733
Stale
Ari:r.ona . . .. . . . . . ... ,
Louisiana . . . . . ....•..•.... . ..
New Mexico ......•. . , ...• ••.
Oklahoma . . .......•. • . •. •. •.
Texas . ..... . . . .. . .......... •
1949
15
10
o
o
28
50
116
144
30
30
105
1'10
4,003
The total number of cattle on feed in the five states of the
District on January 1 was 6 percent below that of the same
date last year, as shown in the accompanying table. An increase of 17,000 head in Texas was more than offset by declines in other states. In the United States the total number
of cattle on feed was slightly larger than a year earlier and
was the largest On record. All of the increase in number
on feed occurred in the Corn Belt States and Texas.
The total number of sheep and Iambs on feed in the five
states on January 1 reflected an increase of 14 percent over
last year, although increases occurred only in Oklahoma and
Texas, The increase in this area was in marked contrast to
the 7 percent decline in the United States. The 3,733,000 head
reported on feed in the United States was the smallest number
since 1922,
LIVESTOCK RECEIPTS
(Numbe,)
Fort Worth market
C1ass
Cattle •. ...•• . ..•..• ...... ... ..
Calve!! ................. .. . . ....
H............................ .
Sheep ..... ...... ............. .
J ....
Jan.
1950
30,562
15.049
63.277
25,546
1949
3~ .OI8
20.737
62.693
35,064
Dee.
1949
32.677
20.011
57.785
19,159
San Antonio market
Jan.
1950
24.306
15.884
8.105
16,165
Jan.
1949
24.69~
14.111
7,535
16,853
Dee.
194~
19,718
14.808
12,167
12,980
TOP LIVEHTOCK PRICES
(DoU... per hundredweighl)
Fort Worth markeL
Jan.
1950
CI""
steers . .. ............. 127.00
SLoe er steers....... ........ ... 24 .00
Slaughter cows .. .. •. . . . ... . ...• 18 .00
Slaughter
and yearlings . . . 27 .50
25.50
~~~:~e~J~e:~ '.
26.00
SIa.ughter lambs ........ . ....... 24 .00
Hogs . ............ ........ ..... 17.75
Slau~hter
heifers
:::::::::::::::
Jan.
1049
126.00
25.50
20.50
27.00
25 . i5
24.50
24.00
22.00
Dee.
1949
128.50
23.00
17.50
28.50
25.00
24.50
23.00
16.50
San Antonio market
Jan.
Jan.
1950
126.00
123.50
i9:5O
26.00
26 .00
2i .00
23 .25
17.50
194~
Dee.
1949
20:50
24.00
25.25
25.00
24.25
21.00
The movement of livestock into the Fort Worth and San
Antonio markets in January was 5 percen t above that of December, as increases in receipts of cattle, hogs, and sheep more
than offset a decline in marketings of calves. In comparison
with January 1949, however, total marketings were down 6
percent as the 19 percent increase in receipts of hogs failed to
match declines of from 10 to 20 percent for other classes.
55
MONTHLY BUSINESS REVIEW
Prices received by Texas farmers for all agricultural commodities at mid-January averaged near the same level as during the past 7 months. Moderate price increases during the
month then ended were recorded for beef cattle and calves
while limited gains were noted for other meat animals and
most crops. These increases were virtually offset by sharp reductions in prices of poultry and eggs. Chickens JeU from 28
cents per pound to 22.3 cents, and eggs at 32.2 cents per
dozen were oif almost one-third from a month earlier.
CASH RECEIPTS FROM FAR1! MARKETINGS
(In thousands of dollars)
November 1949
~:---...,.,---,--~
State
CroPS
Arizona.... . . ..
. . $ 29,OR5
Louisiana.
. . . . . 43,355
New Mexico . .. . . . ... 18,027
Oklahoma... ... . . . . . 46,175
Texas ......... . ..... 295,620
Livestock Total
$ 8,633 S 37,718
9,650
20,111
25,457
65,227
53,005
38.138
71,632
360,847
Cumulative receipts
November January 1 to November 30
1948
Total
1949
1948
$ 26,894 $ 198.9&4 $ 195,371
51,208
297.385
306,988
39,530
172,354
174.632
69 ,804
626,904
573.307
244,074
1.905,182
1,818,923
Total........ 00 00 001432,262 $129,078 1561,340 1431,510
SOURCE: United States Department. of Agriculture.
$3,149,470
$3,120,540
Reports from spot commodity markets indicate that from
January 15 to mid-February, prices of grains, poultry, eggs,
and most classes of cattle, fluctuated within narrow ranges,
Prices of hogs and lambs made slight seasonal increases, while
cotton prices advanced to the highest level since July,
Balance Sheet of Agriculture
The value of assets belonging to the Nation's farmers declined 3 percent, proprietors' equities fell 3 percent, and liabilities increased 7 percent during 1949, according to estimates of the Bureau of Agricultural Economics. This is the
first time farmers' assets and equities have declined since 1940,
when these data first became available, There was an increase
of 20 percent in value of machinery and motor vehicles, as
well as smaller increases in investment in cooperatives, household equipment, and United States savings bonds. These gains
were more than offset by declines of 6 percent for real estate,
10 percent for livestock, 9 percent for crops on hand, ~nd 5
percent for deposits and currency. All classes of liabilities increased; real-estate mortgages were up 6 percent and nonreal-estate debts increased 7 percent,
These nationwide data, however, can be misleading when
applied to individual areaS or farms since there are very wide
variations in the financial status of individual farmers, For
example, the equities of many persons who have recently purchased farms probably average less than 50 percent, Futhermore, many farmers, although free of long-term indebtedness,
have failed to improve their cash position during the recent
period of high prices for agricultural products, and some farmers continue the practice of operating from year to year on
borrowed capital. Such farmers, when they encounter crop
failures, family sickness, or declines in agricultural prices, frequently suifer hardships or are forced to liquidate assets, if
owned, to meet their current obligations.
Changes in Numbers and Values of Livestock on Farms
in the Southwest During 1949
The January 1 estimate of 30,390,000 head of livestock on
farms in the five southwestern states lying wholly or partly
within the Eleventh Federal Reserve District reflects an increase of 2 percent during 1949, the same as in the United
States. In the Southwest, increases occurred last year in the
numbers of cattle and sheep, reversing the downward trends
that had been under way since the wartinle peaks, and hog
numbers increased for the second consecutive year, The numbers of horses and mules, on the other hand, continued to decline,
Cattle numbers increased about 3 percent in Texas, 4 percent in the five states, and 3 percent in the United States in
1949, In each instance, the increase was due chiefly to an
expansion in beef cattle numbers as only minor increases
occurred in the numbers of milk cows and heifers 2 years
old and over, The 16,786,000 head of beef cows 2 years
old and over on the Nation's farms was 5 percent above a
year earlier and the largest on record, The increase in numbers
of milk cows ended the decline which started about 5 years
ago, Indications pointing to more milk cows in the future
are a 2 percent increase in 1 to 2 year old heifers, and a
6 percent increase in heifer cal ves being kept for milk cow
replacements,
NUMBER OF CATTLE. SHEEp, AND HOGS
These changes in the balance sheet of agricul ture are largely
the result of (1) sharply lower prices of agricultural commodities, which are reflected in lower values of crops, livestock,
and real estate, and (2) continued high COSts of farming operations, which led to an increase in short-term indebtedness, Another factor which has contributed to the increase in real-estate
mortgages has been the trend toward a lower down payment
made in the purchase of farms. The smaller amounts of deposits and currency on hand, and the increased amount of
nonreal-estate debt, suggest that farmers are willing to use
savings and credit to modernize their farm equipment and improve their standard of living,
As a group, farmers owned 90 percent of their total assets
on January 1, compared with 92 percent a year ago and 82
percent in 1940. The ratio of liquid assets (livestock, crops,
cash, and bonds) to short-term and intermediate-term debt
(nonreal-estate debt) was 6.4 to 1 as of January 1, which
indicates a high degree of liquidity. Moreover, the ratio of the
value of real estate, machinery, and motor vehicles to realestJte debt (indicative of long-term indebtedness) was 13.6
to 1.
TEXAS, OKlAHOWA, LOIJ!IAHA, HEW MEXICO. AND ARIZONA
"' iLLION
~ ~~ t OHS
1
f:::=
'-:---'-_.
-'- r---
1\;-
.J-CATTl.
' -.. "j-.-.
.-'
SHEE~'" 1'--- . . -J......-......
10
"
.. .
~
1
1
..H"'_
/,HOOS
..
>
......
S
,,~
'M'
..
, ,.,
... _.
,
.~
l'ilU
.. -
0
.~
The 3 percent increase in the number of sheep on farms
and ranches in Texas during 1949 accounts for most of the
2 percent increase in the five southwestern states, and compares with a decline of 3 percent in the United States. Estimates of sheep population by classes indicate that the five-
MONTHLY BUSINESS REVIEW
66
state total of ewes, 1 year old and over, declined 3 percent
during 1949, while the total number of stock sheep, reflecting
restocking of farms and ranches, increased by the same percentage. The number of sheep on farms and ranches in the
United States on January 1 showed the smallest decrease since
the decline began in 1942 but was the lowest in 83 years of
record and 45 percent below the recent peak. Slaughter of
sheep and lambs in 1949 was the lowest since 191 8 and about
21 percent below 1948. The proportion of ewes in the 1949
slaughter was less than in any year since 1941. The number of
ewe lambs held indicates that the downward trend in the
number of stock sheep in the United States may be near an
end. The increase in sheep numbers in the Southwest was
largely in response to improved range conditions.
The number of goats in Texas on January 1 of this year
was down 8 percent from a year earlier, which compares with
a decline of 20 percent in 1948. The kid crop percentage in
1949 was larger than in the previous year. There was a marked
decrease in marketing and slaughter of goats laSt year but
the volume was still large enough to reduce inventories. The
announcement of a price suppOrt program for mohair in 1950
has been one factor encouraging ranchers to reduce marketings
of goats.
Southwestern states-
1950p
Horses and colts. .........
Mules and colts . . . . ... . ..
All cattle and calves . .....
Milk cowst. , . ... ......
Hogs, including pigs .... . ..
All sheep an lambs.......
EWe3 one yr. old and over"
Goats· .. . .......... . .
139
8,6.\8
1,296
1,701
236
6,821
4,380
2,246
Total "bove species . ....
Cbiekens ....... . ... . ... .
Turkeys ...... .
19,917
27,384
755
Sows and ~i1"I .........
1949
1_
1949
Number - (Thousands of head)
352
387
820
160
8,406
1,283
1.jOl
293
14.767
2.388
3.3M
225
6,613
4,516
2,441
8.000
5,927
2,246
19,708
25,771
770
504
30,390
45,258
920
8B3
The increase of 6 percent in the number of chickens in the
five southwestern states during 1949, which was due to an
increase in each of the states except Louisiana, compares with
an increase of 7 percent in the United States. The Nation's
farmers produced 17 percent more chickens in 1949 than in
1948 and pullet holdings on January 1 were up 12 percent,
but the number of hens on hand was 2 percent below the
large hold-over of a year ago. In contrast to the substantial
expansion in the number of chickens on farm s in the five
southwestern states, the turkey population made only a fractional increase and the number in Texas was down about 2
percent. The number of turkeys in the United States was up
10 percent from a year earlier, reflecting increases of 9 percent for breeder hens and 13 percent for toms and market
birds. On February 1 farmers in the United States expressed
an intention to raise slightly more turkeys this year than
they ra~ed in 1949.
TOTAL VALUATION OF LIVESTOCK ON, FARMS
TEXAS. ()I(LJ.HQMA, l..!IUS&AHA, NEW IlE.XICo,
LIVESTOCK ONlFARMS. JANUARY 1. 1950
T ....
reach marketable weights earlier. The estimated numbers of
sows and gilts in Texas and in the five states on January 1
were up fractionally from a year earlier.
Ate)
AJltZONA
United Slates
1950p
331
1l.246
2.355
3,337
494
8.699
6.089
2.441
5.310
2,153
80,277
24,625
60,424
10,783
30,797
20,718
2,246
1949
5,898
2,348
78,298
24,416
57,128
10,033
31,65<1
21,525
2,441
29,937
181,207
177,707
42,800
481,190
448.676
910
6,120
5,MO
Valuation - (In thousands of dollan)
Horses and colts . . . . .... . .$ 12,320 $ 15,480" 29,473 I 35,605 I 242.8791 308,882
MulefJ aDd 001\6. . .. . ... ..
6,672
8,320
17.568
21,783
214,018
274,012
All cattle and calves. . . . .. 900,432
865,818 1.532.565 1,610.728 9,873.710 10.552,421
Milk oowst ......... ... 180,144
173,205
334.666
332,0Z3 4,300.936 4,715.844
Hogs, including pigs.......
35,381
48,437
64.606
87,105 1,638.964 2.183.553
All ,b",p and lambs... .. .. 104,B78
85,213
141.484
119,455
548,248
543,862
Goa,,"..................
12,802
11.473
12.802
11,473
12,802
11.473
Total above .peci... . . . . $1,072,485 $1,032,7<1 11,798,498 11,786,149 112.530,621113.874,003
Cbick.ns ................ 30,396
32.471
51.220
56.636
6.\5.210
745,9211
Turkeys.................
3,624
5.M4
4,503
60561
38,193
48,172
Total farm value. including
chickc", and turk.ys. 11,106.505 11.070,756 11,854,221 11.849.346 $13,224,024114.608,104
p-Prelimina.ry.
• Texas, Arizona, Louisiana, New Mexico, and Oklahoma.
~.tilk. cows included in "All cattle and calve8."
Son and gilts included in "Hogs, including pigs."
+ Ewes one year old and over included in "All sheep and lambs."
• Goat numbers and value shown (or Te:u.s only, since estimates for otber 8~tes arc not
anilable and most o( the goats are on raDge5 in Te:u.s.
I
SOURCE: United States Department of Agriculture.
The estimated number of hogs in the five states on January 1 was slightly above the number reported a year earlier,
although the estimate of numbers in Texas remained unchanged. The number of hogs in the United States, the largest
since 1946, was up 6 percent. Nearly all of the increase was
in hogs under 6 months old and this reflects the increase in
the fall pig crop. The number of hogs over 6 months old was
about 1 percent higher than last year; however, all of this
increase was in the number of sows and gilts being held for
spring farrowing. The number of other hogs 6 months old
was down 3 percent from last year. Marketings of hogs from
the spring pig crop started early and were very rapid during
the fall months. This was made possible by earlier farrowings,
m.1rketing at lighter weights, and a heavy rate of feeding to
The total value of livestock in Texas, and in ti,e five southwestern states as a group, increased fractionally during 1949
as increases in numbers more than compensated for declines in
prices. This contrasts with a decline of 10 percent in the
United States. The average value of $ 103.78 per head of cattle in the five states on January 1 was $2.27 below the average of the previous January, and compares with a national
average value of $ 123.00. The value of sheep in the five-state
area averaged $15.90 per head at the beginning of 1950, compared with a national average of $17.80. H ogs in this area
had an average value of $19.21 per head, which compares
with $26.10 in 1949 and with the 1950 United States average
of $27.10 per head.
FINANCE
During the four-week period ended February 8, 1950,
weekly reporting member banks in the Eleventh Federal Reserve District showed increases in all loan accounts, with the
exception of Joans to banks, which did not change, and loans
to brokers and dealers in securities, which declined slightly.
During the last week of the period, however, declines occurred from the total loan volume of $1,203,314,000 , a record high attained on February 1 after a period of almost unin terrupted growth beginning in mid-August 1949. The down-
MONTH:LY.J3USJ~ESSREYIEW
w.rd trend in volume during the n:ost recent week .for which
fi gures are availa ble might indicate t he beginning of a s eason.1 decline in lending activity w hich is normally e xp~~ted'
during the first part of the year.
Approximately three-fourths of the $12,443 ,000 growth in
total loans during the period Jan uary 1 1 to February 8 is
accounted for by the expansion which occurred in loan's to
commerce, industry, and agriculture. After reaching an alltime high of $852 ,016,000 on Februa ry 1, loans for these purposes fell to $845,016,000 during the succeeding week. Other
changes during the four-week period include an increase of
$1,347,000 in real-est ate loans; an increase of $1,326,000 in
" all other loans " ; a decrease of $8 6,000 in loans to brokers
and security dealers; and an increase of $372,000 in other
loans for security trading.
Total investments of these selec ted member banks declined
during the period to $1,354,459,00 0 as t he result of the c~m
bined effect of a $10,6 69,000 decrease in holdings of United
States Government obligations and an increase of $3,029,000
in holdings of other securities. With the exception of Treasury notes, these banks were net sellers of Government obligations. Treasury refunding operations on February 1 account
for the greater portion of a $2 5,069 ,00 0 decrease in certificate holdings .nd a $41,213 ,000 increase in n ote portfolios.
Net sales or redemptions of $14 ,643,000 in T reasury bills and
$12,170,000 in Treasury bonds, however, were effected at the
banks' discretion.
The greatest change in the condition of weekly reporting
member banks during the latest 4-week period consists of
a $117,797,000 decrease in total deposits. Contractions in demand deposits of indiv iduals, partnerships, and corporations,
.mounting to $67,729,000, and of interbank deposits,
amounting to $6 1,950,000, more than accounted for this
shrinkage. Slight increases in demand deposits of states and
their political subdivisions and in total time deposits, together
with .n $11,588 ,000 incre.se in U nited States Government
deposits, arrested somewhat the downward trend .
57
Thus, the . weekly ,eporting banks experienced a twofold demand by depositors, that of individuals and businesses and that
of banks, and were put under the necessity of drawing on their
reserve balances at the Federal Reserve Bank and their own
deposits at other banks. Reserves w ith the Federal Reserve Bank
were drawn down by $29,749 ,000,. while bala nces with other
banks declined by $71,384,000.
SAVINGS DEPOSITS
J anuary 31, 1950
Number of
reporting
bank:t
City
Louisiana:
Shreveport . . ..
Texas:
Beaumont ......•
Dallas.. .. . . ... . . . . . .
EI Paso..... ... .. .. . .
Fort Worth ... . . .....
Galveston ... . .. .... . .
N umber of
sav ings
depositors
3
8
2
Jan. 3 1,
1949
43,522
I 24,967.041
-0 .5
0 .3
5.957.389
i7 ,528,73 6
22.61l3 .241
35.581.593
21.017.170
75,058,228
3,409,499
4.435.576
43 .901,043
10.257,733
4.486.485
55.998.127
- 3 .2
-0.9
0 .9
- 1.7
- l.4
1.7
-1.2
1. 9
- 5 .5
- 5.3
-3. 1
2.1
0. 5
3 .0
-0 . 2
- 1.0
-0. 7
- 0. 4
-0. 9
-0 .1
- 1.2
- 1.0
-0. 8
0. 6
1385.281.861
0. 2
-0 .6
Port Arthur ..... ... . .
San Antonio .. . . ... . .
Waco ... . . .. . ... . . ..
Wichita Falls . . .. . . . . .
All other.. . . .. .. ... ....
r~b=: : ~:· :::: :: : : :
8
2
2
5
3
3
65
TotaI . ... ... ... ..... . ..
102
522.368
~
sav i n~g
Pcrcentage change in
suvings deposits from
depooits
12.073
142.484
31 ,061
43,910
22.30 1
94.739
1.976
5.816
40.972
10.003
7.928
65.583
4
Amount of
Dec. 3.,
1949
. The trend of gross demand deposits of all member banks in
the District showed a further increase during January, cont inuing the uninterrupted growth which goes back as far as
May .1949. With demand deposits reaching pea k levels during
~he first 3 weeks in January and showing a t endency to
level off or decline only in the fourth week, gross demand deposits of all mem ber banks averaged $5,733 ,218 ,000 during
the month as compared with $5,612,558 ,0 00 in December
1949" and $5,430,929,000 in January 1949. This growth in
demand deposits in January was approximately twice as great
at country banks as at R eserve city banks, whil e the growth
in time deposits was somewhat greater at the latter institutions.
GROSS DEMAND AlI'D TIME DEPOSITS OF
~IE M DER
BANKS
E leventh Federal Reserve District
(Ayerage9 of daily fi gures . .In t housands of dollars)
CON DITION STATISTICS OF WEEKLY REPO RTING MEMBER BANKS
.
IN LEADING CITIES - Eleventh Federal Re3erye District
(In thousands of dollars)
Da.,
February 8, February 9, January 11,
Item
Tota l loans aud inVl"StmenM.
T otallo9.ns-lIett.. . .
Totalloans-gr0s8 .............. ~
..... .
1950
. .. $2,553,4 11
1,187,489
........
1,198,952
i::ll~1~c~~~~~~~~~'\Je~I~~rni~~~~iti~~~l~::..
84~:~g
Combined total
1949
$2,294,876
1,IU,477
1,1 20,088
7~:~~~
1950
$2.548, 608
1,174.980
1.1 R6, 509
83g:~~~
Other lonn~ for purchasing or carrying securities.
4"1,059
56,570
47,687
Rcal-estate loans.
95,062
88,738
!J3,715
Loons to banks. . .
71)
35
79
All other loans...
204,900
186,011
203,580
1.354,459
1,1 74,188
1,302.099
Total invf1\tmenl<l....
U .~ . T rea.,c;ury bills.......... . . . . . .......
104,146
2fi, I83
lJ 8,789
11. S. T reasury certificates of indebtedness.. .
320,639
274,224
345,708
U. S. T-easury notes. ......... . ..... . .. . ... . ..
136,295
41,543
fl5,08%
U. S. Government bonds (inc. gtd. obligations)...
663 ,608
71 2,351
675,778
Other securiiies............... ...... . . . ....
129,7 71
120,487
126,742
463,193
546,237
492,942
Reserves with Federal Reserve Bank..... .. ... . . .
............
4177 ,844
233.633
34P,228
Balances with domestic banks.
Demand deposits-adjusted·..........
1,969,957
1,932, 769
2,0 19,276
453 ,366
417.865
452,157
T ime deposits e'<cept Government....
United States Government deposita.
60,729
46,963
49,151
662.317
534,839
724,267
Interbank demand deposits...... . ....
Borrowings from Federal Reserve Ballie
0
4,000
0
• Include!! Itll demand dep<Rits other tJ181l iut-erbank and Uuiteu Stlltes Government, less
eash itelUll reported as on hand or in process of collection.
t After ded uctions for reserves and unallocated charge-offs.
As individuals and others in the District drew down their
demand deposits at weekly reportin g banks, largely during the
last 3 weeks of the period, member banks experienced a
loss of funds. Country member banks met this demand by
drawing down their deposits with banks in the larger cities.
Gr"""
demand
January 1948..... ,. 55,319 ,138
January 1949.... . . .
Septe mber 1949 . . . .
OetobJr HI49 .• . , . . .
November 1949.....
Dece mber 1949 . ... .
January 1950 . ... .. :
5,430,929
5.146.942
5.278.671
5.482.103
5.612.558
6.733.218
Reserve city banks
Gross
Ti me
1557.571
607.167
6<6.045
652.043
636.996
648. 676
659.140
demand
12.521,106
2,612.025
2,503,649
2.673.396
2.666.217
2.71 2,547
2.762. 603
Time
1349.429
390,682
421,452
42 1,811
408.479
417.067
423.289
Country banks
Gross
demand
12.79 1.432
2.818.904
2.613 .393
2,705,275
2.815.886
2.900.0 11
2.980.61 5
T ime
$208.142
210.485
226.593
2~0 , 232
228,517
23 1.609
235,851
Bank debits as reported by banks in 24 cities of the
District and the annual rate of turno ver of deposits at
these banks showed seasonal changes du rin g J anuary. Partly
indicative of the diminished tempo of business and ot her economic activity during the month, as compared to D ecember,
bank debits declined 9 percent, although they remained slightly above the figure reported for the comparable month last
year. The annual rate of deposit turnover declined from 14.8
in December to 13 .3 in J anuary, with the lat ter rat e slightly
below that for J anuary 1949. Largest increases in bank debits
were reported from Corpus Christi and Roswell; Corsicana reported the greatest decline, approximately 27 percent.
For t he month ended February 15 the Federal R eserve Bank
of Dallas reported decreases in all its principal accounts, with
the exception of member bank discoun ts, w hich increased
by $2,060,000. Decreases of $76,82 0,0 00 in member bank
MONTHLY BUSINESS REVIEW
58
BANK DEBITS, END-OF-MONTH DEPOSITS, AND ANNUAL RATE OF TURNOVER
OF DEPOSITS
(Amounts in thoU3llDds of doll.an)
---DebitR+--_
Annual rate of turnover
Petg. change over End..or.ruontb
January
Jan.
Dec.
depositaJ an.
Jan.
Dec.
City
Ari1<ona:
Tucson-, ...
.1
Louisiana:
Monroe .. .. .. . ..
Shreveport-, •...
New Mexico:
RooweU·••• •....
TUM :
Abilene •.......•. . .•
Amo.rillo., ...•...
AWtill. .. , ......
Beaumont .......
Corpus Christi- . .
COrsieana •• .....
Dallas ••. " .........
El Paso .. .. .........
Fort Worth .........
Ga.lveston ........ . ..
Houston •.. •.• " .•.•
Laredo ....•• •.• , • • .
Lubbock tl, ••.•.•••• '
Port Arthur.. •.....•
San Angelo_ ...•. _._
San Antonio" _..••.•
Texarkanat ... ... . ..
1950
1949
08,883
-
11~~':: :: :::::::: ::
Wichita Falls .•..•. ..
4
34,663
280,035
14,962
44,524
M ,092
63,553
1949
85,660
8 .6
8.3
8.6
46,491
173,696
10 . 6
10. 4
10.2
10.8
10.9
11.6
21
12
22,634
10. 4
9 .5
10.0
24
18
4
2
17
- 11
1
3
- 1
-13
13
-27
- 15
3
-11
-1
- 11
-2
11
-7
-7
-6
-11
-4
-8
-6
40,059
96,636
lll,619
94 ,797
89,3U
20,98')
803,521
129,188
307,805
94,250
972,773
21,799
82,073
40,787
44,171
340,836
23,M2
51,712
66,442
89,944
11.6
13.1
16 .2
12.7
9.1
12 . 6
17 . 4
11.9
11. 8
6 .8
18.0
13.3
12 . 8
9.7
16. 6
10.2
11.6
10.8
8.6
9 .5
8 .0
10. 2
8.4
8 .3
11.8
12 . 8
16 .7
U .8
12.0
8.4
20 . 3
15 . 2
16.4
9.2
16.0
9.7
16 . 9
10. 9
10. 7
11 .0
8. 4
10. 6
10 .2
9.4
18,526
115,203
33,1XI-4:
1949
1
-9
40,573
160,331
39,877
104,164
147,712
99,296
91 ,063
10,509
1,139,997
164,453
352,304
72,120
1,085,405
17,203
1940 Jan, 31, 1950 1950
-
-I
23
11
-8
-10
-9
72
-6
20
10
-5
-I
15
11
12.8
6.1
17.0
16.1
13.7
9.1
13 .3
9.6
17 .2
10. 1
9 .5
10. 2
7 .6
10. 1
9 .6
8.6
101.1-24 cities ....... 14,234,132
- 9
$3,850,538
13.3
13 . 6
14 . 8
I I ndicates change of less than one-hail of 1 percent.
+ Debita to deposit aecounta except interbank accounts.
• Demand and time depot:lit.s at the end of the month include certified and officers' chew
outstanding but exclude depot:lit8 to the credit of banb.
t T his figure includes onlr onc bank. in Texarkana. Texaa. Total debits for all banka in
Tuarkana, Texas-Arkansas. mcluding two banka located in the Eighth District, amounted to
125,790.
• Figures for six centers in this District include debita of additiooal reporting banu beginning
with the current month. Back figures bave not been revised. but it La estimated that the totals
reported for Ig4g would be increased by approximately 8 percent in TuClJon, .. percent in
Shreveport, 11 percent in Roswell. 13 percent in CorPU8 Chriati. and 6 percent in Lubbock
and San Antonio.
reserve deposits and of $26,983,000 in gold certificates were
accompanied by decreases of $8,222,000 in United States Government securities; $7,380,000 in Federal Reserve notes in circulation; $6,512,000 in total earning assets; and a minor decline of $350,000 in foreign loans on gold, The abatement of
seasonal requirements for currency and the decline in deposits
at member banks account, respectively, for the shrinkage in
notes in circulation and reserve deposits, Smaller holdings of
United States Government securities reflect sales of Treasury
bonds from the System portfolio,
CON DITION OF THE FEDERAL RESERVE BANK OF DALLAS
(In thollWldi of dol1an)
Item
Total gold certificate reserves ... ,
Discounts for member banks . . _. . . . ..•.......
Foreign loans
OD
gold _.•.•. . .•.......... . , . .
U. S. Govemment spcurities .. .. ............. .
Total earning asset-'! .. . . . . _. _.............. _.
Member bank reserve deposits •• •• • . ... .. .....
Federal Reserve notes in actual circulation. _...
February
1~.
1950
$600.873
2,060
2,041
807,187
811,288
777,7a1
617,029
February 15,
1949
$702,540
1,000
6,064
966,282
973,346
944,521
599,612
January 105,
1950
1687,866
o
2,391
815,409
817,800
8M,651
624,409
On February 14 the Secretary of the Treasury announced
that the 1 % percent certificates of indebtedness maturing
on March 1, 1950, and the 1 % percent certificates of indebtedness maturing on April 1, 1950, would be refunded into 1 %
percent Treasury notes maturing on July 1, 1951. At the
same time it was also announced that the 2 percent Treasury
bonds called earlier for redemption on March 15, 1950, and
the 1 lis percent Treasury notes maturing on April I, 1950,
would be refunded into a 112 percent Treasury note maturing
on March 15, 1955, This announcement, together with the
previous announcement concerning the certificate maturity of
February 1, is of particular significance.
The frequency with which the Treasury has been faced
with the necessity of refinancing maturing issues as a result
of the past practice of offering 12-month certificate issues has
complicated considerably the System's problem with respect
to monetary and credit management. Consequently, as the
Treasury tends to shift its certificate maturities to a quarterly
schedule and makes. more frequent use of longer term notes
having more widely spaced maturities, flexibility of the
instruments of administration of the System's monetary and
credit policy is improved and the probability of more successful effectuation of policy is strengthened.
Moreover, recent refunding announcements involve a slight
firming in short-term rates and, in addition, t end to satisfy
at least partially the demand for intermediate-term securities.
The slight firming in short-term rates is evidenced by the fact
that the weekly offering of Treasury bills dated February 16
sold at an average discount of 1.131 percent, while the January 1, 1951 , certificate issue has sold fractionally below par.
In addition, Government bonds have shown a tendency to
drift downward in price from recent high levels.
NEW MEMBER BANK
The First State Bank, Pittsbltrg, Texas, became a member of the Federal Res<>rve System em February 24, 195 O.
This bank, which was organized in 1911, bas capital of
$50,000', mrpl", of $21,000 , undivided profits of $14,000, and total resoltrces of approximately $1,300,000,
The officers are: R, A. Swain, President; R. Y. Lacy, Vice
President; G, C. Hopkins, Active Vice President; and
J. H. Bland, Cashier,
INDUSTRY
Nonagricultural employment in T exas, which had reached
a new peak at 2,375,300 persons in December 1949, declined
by less than the usual seasonal amount in January, In consequence, employment in January is estimated at a level about
4 percent higher than in January 1949, whereas the year-toyear gain in December 1949 was under 2 percent. The decline
from December to January reflected primarily the release
of temporary workers in retail trade and the seasonal decreases in employment in cOnstruction, transportation and
allied services, and utilities, as well as in some of the service
establishments, The decreases in these lines, however, were partially offset by stronger employment demands from certain
manufacturing lines where workers are being added to turn
out goods needed for spring delivery. The demand has been
especially strong in plants manufacturing fine apparel and
allied products as well as at cotton textile mills, Increased
employment was also reported by certain durable goods manufacturers where output is not keeping pace with the strong
consumer demand for the products,
VALUE OF CONSTRUOTION CONTRACTS AWARDED
(In thousands
Eleventh District-tot-al. ...
Residential....... _. _. _
All other..... . . _.... _. .
United States·- total . .
ordollars)
January
January
1950
S 63.718
1 44,349
27,187
36,531
730.855
Residential..... _. .. . . . . . .
343,501
All other.... . . . . . .. . . . . . .
387 ,354
• 31sta.tes east of the Rocky Mountains.
1949
14,174
30,176
482,91'4
159,128
323,866
December
1949
1 68,207
30,838
3i,369
929,030
419,051
509,979
SOURCE: F. W. Dodge Corporation.
The value of construction contraCts awarded In the
Eleventh Federal Reserve District during January totaled
59
MQ.?iITIiLY Bu'6"INES&.. REVIEW
about $64,000,000, reflecting a decrease of 7 percent'" from
the large December total, but an increase of 44 percent over
the relatively low volume in January 1949. The decrease from
the preceding month wos very small in comparison. with the
46 percent decline that occurred during the corresponding
period a year earlier. The chief factor accouming for the large
volume .of construction contraCt awards in January this year
was the substantial increase in awards . for public works and
public utilities. Awards for all types 'of construction other
than residential decreased only ' 2 percent ft:Om December to
January, and were 21 percent higher than in the c'orresponding month of 1949. Of particular note was the increase over
a year ago of nearly 100 percent in awards for public works
and public utilities, which in January this year constituted
about one-fourth of total awards. Comraq; awards for 'nonresidential buildin g were slightly lower than in either December or January 1949.
BUILDING PERMITS
,January 1950
City
Louisiana:
Shreveport...
Teus:
Abilene ...
Amarillo ....•.
Austin ......
Beaumont . .....
Corpus Christi.
Dallas .....
El Paso ......
Fort Worth.
GalVe1ltOD ..•.
Houston ....
Lubbock ......
Number
Valuation
300
$ 1,114,624
. 42
187
262
452
318
388
1.570
262
633
142
847.323
1,358.587
3.108.450
1.847.376
70
316
75
151
99
3l
79
63
- 12
182
472
72
86
1.7i6,334
7,615.882
1,343,054
2,658.160
Wichita Falls .....
272
164
1.564
298
98
572,373
10.94'.435
1,465,916
390,353
'.M7.551
3,365.197
263,724
Tota1... . .... .... . ....
7,731
143,353,339
...... .....
Port Arthur...
San Antonio.
Waco .... _, ......
Percenta4:e change
•
valuation rrom - - '
J~n. 1949
Dec. 1949'
821
735
131
104
, ,- 31'
149
4
70
240
.' 15
18
':"'M
- 25 .
86
134 .
- 40
87
.
-
in Texas allowables will be about offset by production from
new ' wells:.completed during the month.
•J
..'
ORUDE OIL PRODUCTION
(B.".t.)
January 1950
Are.
TCl:as:
District
1 South Central.....
2 Middle Gulf....... ....
3 Uppe, Gulf...........
4 Lower Gulf. . . •....•. •
5 East CentraL.........
6 Northeast.............
East Texas... . .. . . . .
Total
production
Dsilyavg.
production
812,850
26,221
3,559,000
11,649,000
5,606,550
114,806
375.774
1,014,200
9,514,750
6,869,550
2,645,200
1,932,250
1,457.000
Other fields. .. . . .. . .
7b North CentraL........
7e West Central..........
S West ....... :.........
17,781.050
9 Nodq.. . .............
4,423,450
10 Panhandle.... . . . . . . ..
2,864,450
Total Texas.. ..... . . . .. ....
00,614.550
New Mexico.. ...............
4,009,250
North Louisiana........... . . .
4,016,600
Total Eleventh District.... .. 68,640,300
Outside Eleventh District.... .. 84,589,900 ,
United States ... . ........... . 163,230,200
180,857
32,716
306,927
221.'593
85,329
62,331
47,000
573 582
142,692
Increase or decrease in daily
a\'erage production from
January 1949 December 1949
-760
--47.433
- 77.8R9
-45,120
-13.523
- 98,712
- 68.702
- 30.010
- 413
- 1,482
-104.~33
92,402
1,955,308
12D,331
129,565
2,214,204
2,728,706
3.842
3.171
-382.652
-5,041
11,186
- 376,507
-115,831
4.942.910
--492,338
98
- 4.665
-11.308
- 8,675
-1.542
-HI.31O
- 16.'63
-2.847
784
--4,337
-12.586
1,998
7
-59,536
--6.32
-72
-60,240
--420
-60,660
SOURCE: Estimat.ed from American Petroleum Institute weekly reports.
- .In contrast with the sharp increase that occurred during the
last .half of December 1949, the daily average crude oil runs to
r~finery stills in the United States have shown a persistent
downward trend since the first of this year. The daily average for the full month of January totaled 5,499,000 barrels,
representing an in.crease of 76,000 barrels from December, but
a decrease of 191,000 barrels from the rate in January 1949.
In this ' District, crude oil runs to refinery stills declined by
'21~
71 ,
31",
Residential awards, which amounted to $27,000,000 during
January, exceeded the total in January last year by 92 per:
cent, even though there was a drop of 12 percent from the
total in December. The January awards for residential building, however, were only slightly below the high monthly average level registered during the last 7 months of 194.9,
and account for the major part of the increase in total awards
over January 1949. As compared with a year ago, awards ,in
virtually all types of residential construction were substantially larger than in the corresponding month of i 949'. A wards
for one-family dwellings being built for sale or rent 'accounted
for approximately 70 percent of total residential awards in
January this year and constituted the major increase in dollar
volume as compared with January last year. The strength in
the residential sector of the construction industry continued
to reflect the development of numerous large projects, involving low-cost houses and apartments, stimulated primarily
by the extensive use of credit on liberal terms under F.H:A.
and G.I. loan arrangements.
The daily average production of crude petroleum during
January amounted to 2,214,000 barrel~ in the District and
4,943,000 barrels in the United States. These figures represented cut- backs of about 60,000 barrels in each case from
December and of 377,000 and 492,000 barrels, respectively,
from January 1949. It will be observed that this District accounted for all of the reduction in the Nation's production
from December and about three-fourths of the decrease from
January 1949. Production of crude oil in the District is expected to continue through February at about the January
rate, since th e reduction of about 36,000 barrels per day
t. "' DOLE CLJLf
:3 VPf'EII GLJLF
4 LOWE R GULf
~
E"51 CENTRAL
6. Ho.tTHu.n
1 .. HOIUH CENTRAL
TI:. \II'!ST C[N'TIUL
II. \ll'EST
,. HOII'TH
10. PAHHANOLE
36,000 barrels daily as compared with December and 166,000
barrels from January last year, the latter constituting 87 percent of the decrease in the Nation. Refinery operations
throughout the Nation continued to decline at a very sharp
rate during the first half of February. During January, crude
oil runs to refinery stills were about 556,000 barrels daily in
excess of domestic crude oil production. This figure represents
a slightly higher margin than in December and compares with
255,000 barrels daily in January 1949. This deficiency in
domestic supplies during January this year was met in part
60
MONTHLY BUSINESS REVIEW
by drawing upon the above-ground stocks of crude oil at a
rate of approximately 195,000 barrels daily and the remainder
was supplied through imPOrts of foreign crude oil, which in
January were probably somewhat larger than in either December or January 1949. At the end of January, crude oil stocks
in the Nation totaled 248,411,000 barrels, representing a decrease of 7,048,000 barrels from those on the corresponding
da te last year.
Inasmuch as refineries generally have increased the yield of
gasoline from crude oil, production of gasoline during January was maintained at the December level and exceeded by a
sizable amount the rate in January 1949, despite the substantially lower runs of crude oil to refinery stills. Since the
demand for gasoline during January 1950 was not significantly
different from that in January 1949, thc higher production
of gasoline has resulted in a sharp increase in gasoline stocks.
At mid-February, gasoline stocks in the Nation totaled approxinlately 130,000,000 barrels, which is a newall-time peak.
This amount exceeds by a slight margin the previous peak
reached at the end of March 1949. If the current rate of increase in stocks should be maintained throughout the first
quarter of this year, total stocks may reach approximately
150,000,000 barrels.
A significant development during January was the strong
demand for kerosene and fuel oils, despite the unusually warm
weather on the East Coast. This demand apparently was
stimulated by the cold weather in the Midwest and the
expanding use of fuel oils in the industrial arcas because of the
shortages of coal. During January refinery stocks of these three
products declined at a rate of approximately 700,000 barrels
daily, a decrease which was substantially larger than that
which occurred in January 1949. While this sharper decrease
in stocks in January this year reflected in part the reduction
of 166,000 barrels daily in the output of these products, the
principal factor was the stronger demand which was apparent
during the month.
The new supply of crude oil--domestic production plus
imports-is now running somewhat lower than the demand,
with the result that the United States' stocks of crude oil at
the end of January had decreased to the lowest level since late
in 1948. Moreover, the over-all stocks of crude oil and petroleum products at the end of January were about 14,000,000
barrels smaller than at the end of December and about 4,145,000 barrels lower than a year earlier. If there should be a decline in imports in line with press reports, and the demand
for petroleum and petroleum products should follow the usual
seasonal trend, it seems probable that the domestic production
of crude oil may be nearing a minimum working level.
CEMENT PRODUCTION , SIIlPMENTS, AND STOCKB, IN TEXAS
AND THE UNITED STATES, 1948-49
(Amounts in thousands of barrels)
Shipments
Production
Texas:
January . . .
February . .
March ... . .
~ril. . ...
sy ..... .
June .. . .. .
July.......
August ... .
September.
October . ..
November .
December.
1949
1948
1,090
935
1,088
1,044
1,181
1,095
1,142
1,208
1,158
1,196
1,178
1.187
1,307
I,M2
1,152
1,261
1,242
1,262
1,287
1,344
1,315
Percent
change
Stocks, end of month
Percent
change
1949
1948
879
834
1,235
1,220
1,37l
1,294
909 - 3.3
678 23.0
1,220
1.2
1,288 - 5.3
1,182 16.0
5.1
1.231
16.6
.4
10.3
6.8
lU
10.5
6.5
16.1
9.9
11.0
9.U
3.8
1,401
1,129
13,699
9.4
14,772
13,789
7.1
14,541
13,347
14,502
16,041
17,740
17,7S7
18,721
18,961
18,60.\
19,349
18,43.\
17,42.\
5 .0
3.0
6.5
10.2
5.0
2.9
.7
8,756
9,134
14,539
9,205
8,338
13,957
19,047
19,544
21,426
20.994
20,705
19,938
20,324
18,ll0
12,741
- 4 .9
9 .6
4 .2
- 6.7
.6
- 3.5
- 8.0
14.1
14.2
4.7
- 4 .6
- 8.9
2.1 206,170 204,329
Total ...• 209,831 205,424
SOURCE: United States Bureau or Mines.
.9
1,307
1,272
1,357
Total .... 14,981
United States:
January . .. 15,261
February .. 13,751
March .... . 15,439
~I ...... 17,682
ay ...... 18,622
June ..... . 18,279
July.... ... 18,856
Augm .... 18,715
September.
October ...
November.
December .
19,181
19,069
18,040
16,936
-
1.3
-
3.1
1.4
2.1
2.8
1,162
1.513
1.426
1,308
1.279 -
1,198
1,194
9 .2
12.6
19.4
1.221
7. 1
1,14.2 20 . 7
1,247 - g .5
17,779
19,426
20,667
19.321
23.633
22,763
21,277
17,269
1l,606
1949
Percent
change
1948
641
899
1.l77
857
543
963 1,IOS
670
S83
49S
.24
386
387
344
370
430
727
695
820
600
539
S38
410
638
17,591
22,206
16,600
22,977
22,170
19,784
19,3 13
14.390
10,797
8,569
9,341
14,671
15,336
20,340
15,439
17,880
16,086
12,422
10,149
8.355
7,061
6,094
6,399
11,084
18.0
5.7
6.5
27.9
24.7
40 . 4
93.3
68.8
39.2
56.4
10.8
48,4
14.7
9.2
7.5
28.5
37.8
59.3
90.3
72.2
52.9
40.6
46.0
32,4
The production of cement in Texas during 1949 followed
an irregular upward trend, and reached a peak in December
at 1,357,000 barrels, This amount was 85,000 barrels larger
than in November and 50,000 barrels higher than in December 1948, Total production for the year aggregated 14,981.,000 barrels, which was approximately 9 percent greater ,han
in 1948, The production record in Texas compares with an increase of 2 percent in the United States. Shipments of cement
from Texas mills during December 1949 were down substantially from November and were somewhat smaller than
in December 1948, For the year 1949, shipments of cement,
which totaled 14,772,000 barrels, were 209 ,000 barrels lower
than production, but exceeded the shipments during 1948 by
about 7 percent. At the end of the year, stocks of cement at
Texas mills totaled 638,000 barrels, or the equivalent of about
one-half month's production, This amount, however, was 48
percent higher than the 430,000 barrels on hand at the end
of 1948. In the United StateS, year-end stocks of cement at
mills totaled 14,671,000 barrels, the equivalent of nearly 1
month's production, and were 32 percent higher than at the
end of 1948 .
DOMESTIC CONSUMPTION AND STOCKS OF COTTON
(Bales)
January·
January
1950
1949
December August 1 to January 31
1949
This season- Last season
Consumption. at·:
Texas mill!................ .
12,286
United States mills...........
734,186
U. S. Stocks~nd of month:
In consuming establishmenta.. 1.749.946
Public storage and compresses. 9,974,867
• Based. on January 28 data.
12.715
11,739
76,259
76.813
674,283
734,013
4,339, 725
4,199,792
1.626,584 1.650.222
8,240,101 10.682,934
@FedFRASER