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MONG£HLG)(
RBVIBW
FEDERAL
Vol. 41, No.3
RES E R V E
BANK
o
F
DALLAS, TEXAS
DALLAS
March 1, 1956
SOUTHWESTERN BANKING IN 1955
Banking developments in 1955 reflected, in a large measure,
the rapidly shifting economic situation and the application of
monetary and credit policy which seemed appropriate to the
changing economic conditions and prospects. To afford a
better understanding of the atmosphere in which banks oper·
ated and to indicate the reason for the major changes in
banking activity and in monetary and credit policy, there is
presented a brief review of economic developments during
the year.
At the beginning of 1955, the economy had already made
a substantial recovery from the recession low reached about
mid·1954, and the general pattern of economic recovery was
becoming more clearly defined. The gross national product,
whkh declined to a low of $357,600,000,000 in the second
quarter of 1954, had recovered to $367,100,000,000 in the
fourth quarter. This increase had been sparked by the con·
tinued sharp gains in personal consumption expenditures and
the high and rising level of construction activity, especially
residential. Another important expansive development was
the virtual cessation of inventory liquidation by the end of
1954. Federal defense outlays declined further, but at a much
lesser rate than earlier. Reflecting strength in the demand for
and output of automobiles, other consumer durable goods,
and building and other industrial materials, the adjusted
index of industrial production had advanced from 123 at
midyear to 130 in December 1954, with the index of durable
goods production up 11 points compared with 4 points in
nondurable goods.
However, early in 1955, there was still some apprehension
concerning the soundness of the recovery movement, since
manufacturing employment had shown only a very modest
improvement and unemployment continued in relatively large
volume. These doubts disappeared in subsequent months, as
the several measures of economic activity reached and passed
the previous peaks. The gross national product, which sur·
passed the previous record early in 1955, continued to rise
during the first and second quarters at about the same rate
as in the final quarter of 1954. Early in the year, the economic
picture was still dominated by rapid gains in consumer
durables - notably automobiles - and steel and building
materials production; subsequently, the marked improve.
ment spread to most other industries. The March index of
nondurable goods production broke into new high ground
and continued upward until midyear, with some industries
nearing capacity operation. While the index of durable
goods production pushed up steadily in the first half of the
year, with such segments as automobiles and steel bumping
the capacity ceiling, the 1953 peak was not duplicated,
largely because the expansion in the output of producers'
equipment was slow in getting under way and in part because
of the sharp reduction in defense production. Nevertheless,
total industrial production, which had passed the previous
peak in May, surged upward to a record level.
At the beginning of the second half of 1955, it was realized
that the economy was operating in a difficult area. By this
time, industry in general, with its accelerating activity, was
increasing its manpower requirements, and many industries
which were operating close to capacity found that additional
production could be obtained only by extending the work·
week or by putting on additional shifts. Moreover, it had
become more difficult to expand employment because the
labor force was being utilized rather fully, necessitating
drawing upon less experienced or less efficient workers.
Around midyear, the major automobile and steel companies
made substantial upward adjustments in wages, which soon
spread to a wide range of other industries. The pressure upon
productive facilities was becoming more intense because of
strong consumer demand, supported by rapidly expanding
personal incomes and the increasing use of consumer credit,
combined with rising expenditures for plant and equipment.
Business inventories were also expanding, but the strong
pressure upon supplies had held the rate of growth below
that of sales so that the ratio of inventories to sales was still
declining. Moreover, the shortage of materials, especially
metals and certain building items, was becoming more acute.
In the atmosphere of a very favorable economic situation and
a strong tone of confidence on the part of businessmen and
consumers, economic activity continued the upward push into
new high ground. Hence, by the end of the third quar·
ter of 1955, nearly all segments had risen to record levels, and
the economy as a whole was operating at virtual capacity.
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
MONTHLY BUSINESS REVIEW
34
These third-quarter economic developments - combined with
rising costs of material, manpower shortages, and intensified
demands - had placed a strain upon the price structure,
and industrial prices were showing sizable increases_
In the fourth quarter, the rate of gain in economic activity
began to taper off, reflecting capacity operations in many segments combined with some slowing down in others_ By the
end of the quarter, it was apparent that some contraction,
particularly in residential construction and in automobiles
and related industries, was under way_ Business and consumer confidence, while still strong, had sobered considerably
from that prevailing during the third quarter_ Consumer
spending had leveled out, but the gap had been filled by the
continued upwa~d trend in plant and equipment expenditures,
higher government expenditures, and the accelerated rate of
inventory accumulati on_ Hence, the year ended with the
economy operating at near-capacity levels, with a strong
demand for goods, and with an atmosphere of confidence
tinged with a note of soberness.
The level of economic activity in the fourth quarter and
the growth during the year may be observed from the data
on the major indicators presented in the accompanying table.
MAJOR ECONOMIC INDICATORS
Uniled States
(Dollar omounll In billions)
on loans for purchasing and carrying listed securities were
raised 10 perccntage points in each instance, bringing the
total to 70 percent of the market value of securities_ This
action was taken in view of the increasing amount of credit
being used in the securities market, which was tending to
support speculative activity_ During the first 2 months of the
year, approximately $1,300,000,000 of Government securities
was sold in the open market or redeemed at maturity as a
means of absorbing the reserves made available by the seasonal return flow of currency from circulation and the
reduction in required reserves associated with the seasonal
decline in deposits.
In April, when the economy was shifting from the recovery
stage to that of expansion, discount rates at Federal Reserve
banks were raised from 1:1;2 percent to 13,4 percent to bring
them in closer alignment with open market money rates and
to make borrowing by individual banks more expensive.
After midyear, when the economy was nudging capacity
limits and inflationary pressures were mounting in an atmosphere of strong and expanding confidence, policy actions
were directed toward placing greater restraint on bank credit
expansion. During the last half of the year, net purchases of
Government securities - including both open market operations and repurchase agreements - exceeded $1,000,000,000
but were sufficient to meet only a part of the reserve needs
associated with seasonal factors. This action, which was taken
with a view to providing for seasonal needs but limiting undue
expansion of bank credit, made it necessary for the banking
system to meet its needs in part by increasing indebtedness.
IndIcator
Gross national product • •.......•.•.....•.••••.
Personal income •• ••••••.•••••••••••••••••••••
Penonal consumption expenditures •••.... • . ••••.•
Construction ••••••• •••• ••••••• ••• ••••••••• •• •
Plant and equipment expenditures •••••••••••••••
Industrial production ••..............•.•••.....
ISeQsonally adjusted, 1947-49 _ 100)
$397_3
$312_1
$257_2
$ 42.1
$ 30.86.
143
$367.1
$290.8
$241.0
$ 39.2
$ 26.18
128
a-E5Umot. based on anticipated capital expenditures as reported by business in late
October and November 1955.
SOURCES; United Stotes Depar,menl of Commerce.
Board of Governon of the Federal Reserv" System.
The agricultural segment of the economy did not share i n
the rising tide of prosperity in the economy as a whole. Although production was close to a peak level, farm income
declined further, reflecting the continued downward trend
of prices and the higher costs of operation.
Monetary and credit policy during 1955 was formulated
in the light of evolving economic developments_ For the year
as a whole, the policy was shifted from the maintenance of
ease in the money market to the restraint of inflationary
developments. The shifts during the course of the year were
gradual, and, in general, actions sought to keep the growth of
bank credit consistent with the sustainable growth requirements of the economy. In effectuating monetary and credit
policy, the Federal Reserve System utilized open market
operations, changes in discount rates, and changes in margin
requirements on loans for purchasing and carrying listed
securities.
On the whole, policy actions during the first half of the
year were moderate and were designed to exercise mild
restraint. In January and again in April, margin requirements
In August and September, and again in November, discount
rates of Federal Reserve banks were raised from 13,4 percent
to 2Y2 percent in three stages (two stages at the Cleveland
bank) of % percent each. Reflecting the effects of a rapidly
expanding economy, the strong demand for bank credit, and
the monetary and credit policies, short-term interest rates
advanced substantially in 1955. During the first half of the
year, when monetary and credit policy exerted only mild
restraint and when the banking system, on balance, usually
had some free reserves (excess reserves less borrowings
from the Federal Reserve banks) , short-term money rates
were pushing upward, though at a moderate rate. The
Treasury bill rate had shown a net rise of less than one-half
of 1 percent. The 4- to 6-month commercial paper rate was
up about three-fourths of 1 percent, and the prime lending
rate of commercial banks remained unchanged.
Late in July, however, the over-all reserve positions of
member banks sWfted from a moderate volume of free reserves to a substantial volume of net borrowed reserves
(borrowings from Federal Reserve banks less excess reserves). This shift, which reflected primarily a substantial
increase in member bank borrowings from the Federal
Reserve banks, occurred despite the deterrent effect of the
higher discount rates on borrowing by individual banks.
As the money markets tightened and as banks borrowed
increasing amounts of reserves to meet that portion of
the strong demand for credit which seemed most appropriate, the rise in short-term rates was accelerated. Commercial banks raised their prime lending rate, in two steps,
MONTHLY BUSINESS REVIEW
from 3 percent to 31f2 percent; the Treasury bill rate advanced
substantially and remained in close proximity to the discount
rate; and the 4- to 6-monlh commercial paper rale rose 1
percent to the 3-percent rate prevailing at the end of the
year. At the close of 1955, most short-term rates were at the
highest level in about 20 years.
35
DEPOSITS OF MEMBER BANKS
Eleventh Federal Reserve District
(In thousands of dollorsT
CHANGE
Oec. 31, 1955
over
Economic developments in the Eleventh District in 1955
were essentially comparable with those in the United States,
as discussed in the preceding paragraphs. The differences
were largely a matter of degree, rather than direction. Hence,
the commercial banks in this District operated in about the
same economic climate as those in other sections of the country, experiencing the same stimulants and pressures.
The total resources of the District member banks, which
had expanded sharply in 1954, increased at a more moderate
rate in 1955. At the end of the year, the total amounted to
510,252,000,000, representing a gain of $418,000,000 compared with an increase of $649,000,000 in 1954. In the latter
year, the enlarged supply of reserves resulting from the easy
moncy policy in effect enabled member banks to expand total
loans and investments - which, in turn, largely accounted
for the growth in total resonrces. In 1955 the expansion was
more moderate because, in view of the policy of credit restraint, member banks had to supply their funds for lending
partly through adjustments in their investment portfolios
and partly through in creasing their indebtedness to the Federal Reserve bank.
Member bank deposits also increased at a slower rate in
1955 than in 1954. The year-end deposit total of $9,489,000,000 reflected an expansion of 4 percent during the year,
compared with 7 percent in 1954. The $348,000,000 gain in
total deposits occurred almost wholly in demand deposits of
individuals, partnerships, and corporations and in total time
deposits. Each of these groups showed about the same dollar
increase during the year, whereas in 1954, all classes of
deposits except those of states and political subdivisions
shared in the much larger dollar gain. Normally, the major
DEPOSITS AND LOANS AND INVESTMENTS
MEMBER BANI(S - ElEVENTH FEDERAL RESERVE DISTRICT
8 1LLiONS OF DOL LAR
ILL IONS OF OOLL.lR S
0
10
1
9
rl9
/ f .....
•'-....
TOTAL DEPOSITS
7
•
••
1953
I
.. ,-
- I
V
__ ('" I
,<'
...
'
.. ,•.
1955
7
•
TOTAL LiANS jNO INVESIME"IS
195 4
•
'"
Item
D.c:, 31, 1955
Dec:. 31, 195-4-
D.c . 31, 1954
DEMAND DEPOSITS ••...•... • •• ••• •
$9,195,796
$9,001,767
$194,019
5,934.599
145,510
555.619
1,449,840
21,734
5,671.531
160.390
559,035
1,442.366
16.579
163.068
-14,890
-3,416
7,474
5,155
178,484
$1,303,042
$9,488,828
151.866
$1.138.926
$9,140,693
26,618
$164.116
$348,135
Indi'4'iduals, partnerships, and
corporations •••••• •••• • ••••• • ••
United Stotes Government . • . . ... ..
States and political subdivisions ... .•
Banks in the United States • ••• •• •• ••
Banks in foreign counlries . . .. . . . .. .
Certified and ofAcers' checks, cash
leHers of credit and travelers'
check~1 etc ••• •••• • ••••••••••• ••
TIME DEPOSiTS ....... .. ..... .. .. ..
TOTAL DEPOSITS ••••••...•..
classes of demand deposits show a substantial contraction
during the first three quarters of the year - reflecting loan
liquidation, tax payments, and the adverse balance of trade
with other sections of the country - but increase rapidly
during the final quarter in response to expanding loans to
finance seasonal growth in trade and industry and the inflow
of funds derived from the sale of farm commodities and other
products moving into foreign and domestic trade. In 1955
the three-quarter contraction amounted to about 9 percent,
but in the fourth quarter, there was a gain of 12 percent.
On the other hand, time deposits evidenced a steady growth
throughout the year at about the same rate as in the preceding
year. In 1955, more than two-thirds of the gain in lime
deposits was at reserve city banks, whereas in 1954 the gain
was shared about equally by reserve city and country banks.
The smaller relative gain at country banks in the more recent
year may be associated in part with the decline in farm income, while the larger increase at reserve city banks partly
reflected the rising personal incomes of the nonagricultural
labor force.
Coincident with the national trend, Eleventh District member banks experienced a significant growth in their loan
portfolios, reflecling primarily the heavy demands for credit
growing out of the rapidly expanding economy. In 1955 the
net expansion of $486,000,000 brought gross loans to S3,999,000,000 at the year end. This total represents a gain of 14
percent during the year and is only moderately larger than
the 12-percent gain registered in 1954. However, there were
marked difierences between the 2 years in the composition of
loan portfolios, as well as sizable variations in the gains
between reserve city banks and country banks.
The principal exception to the general expansion was loans
to farmers, including paper guaranteed by the Commodity
Credit Corporation. The volume of CCC paper was affected by
Treasury policy in providing the CCC's need for funds to
finance the growing volume of commodities under Government loan; the rise in market rates of interest which made the
rate on certificates of interest less altractive; and the strong
competition among borrowers for bank loans. As in 1954,
holdings of CCC paper fluctuated widely during the year;
however, at the year end, total holdings of $209,000,000 were
MONTHLY BUSINESS REVIEW
36
LOANS AND DISCOUNTS OF MEMBER BANKS
Elevenlh Federal Reserve District
(In thousands of dollorsJ
CHANGE
Item
Dec. 31, 1955
Dec. 31, 1954
Dec. 31, 1955
over
Dec. 31, 1954
Real~e5tate loons •••. .•.••.•••••••..
$ 394,470
1,123
$ 322,284
1,682
$ 72,186
_559
Commercial and induitriolloons. • •••••
loons to individuals •.. . . •• • . • ..••••.
All other loans .•....•.• .•..........
165,356
434,360
2,051,440
798,821
153,453
161,017
509,0.46
1,676,269
759,636
82,720
4,339
-74,686
375,171
39,185
70,733
LOANS AND DISCOUNTS (GROSS),.
$3,999,023
$3,512,654
$486,369
Loans to bonks .• ..•.... •..• . .•••.••
loans for purchasing Dr carrying
securities ..•. ...•... ... •....•. .. .
loons to farmers ............. . . .•. •
down nearly one·third from those a year earlier. At the end
of 1954., the District member banks held a sizable volume of
l o/s·percent certificates of interest issued in November of that
year, in addition to the large volume of certificates of interest
acquired in connection with the farmers' action in placing
commodities (principally cotton) under the Government loan.
During the early part of 1955, when the demand for reserves
coincided with an upward trend in interest rates, the banks
liquidated a large share of their CCC paper; and on August
1 the Treasury redeemed the outstanding 15jg·percent certificates of interest. By the end of the third quarter, the total
volume of CCC paper held by member banks had declined
to about $75,000,000. In the fourth quarter, the banks' hold·
ings of CCC certificates of interest rose 8134,000,000, or only
about 58 percent of the gain in the corresponding quarter of
1954. The country banks acquired a smaller volume of such
paper, and the increase at reserve city banks was nominal.
The smaller acquisition at a period when the supply of such
paper was very large was due to the unattractive rate of
interest relative to the rates available on other loans or invest·
ments, the slow liquidation of other loans to farmers, and
the strong demand for loans from other sources at the higher
rates.
Other loans to farmers, principally at country banks, rose
steadily through the first three quarters of the year. The peak
of loans was reached later in the year than usual because of
the slow maturing and harvesting of crops in many sections
of the District and the delays experienced in obtaining funds
from commodities placed under the Government loan. Exper.
ience in collecting farm loans varied considerably over the
District, reflecting largely the effect of agricultural develop.
ments. In some areas where better than average crops were
harvested, collections were exceptionally good, and much
paper charged off during preceding years of poor crops was
liquidated. In other areas where crop production was ad·
versely affected by weather conditions, the volume of carryover loans was larger than usual. While liquidations in the
fourth quarter were larger than in the corresponding period
of 1954, the year·end total of outstanding loans was nearly
$20,000,000 larger than a year earlier. However, total
loans to farmers, including CCC paper, were down ahout
$75,000,000.
Real·estate loans showed a steady upward trend throughout
the year at both reserve city banks and country banks, and the
rate of increase was higher than in 1954. While all categories
of real-estate loans increased, the largest percentage gains
were in loans on residential properties, reflecting the exceptionally large volume of residential building during the year.
The substantial increases in loans insured or guaranteed by
the Federal Housing Administration and Veterans' Admin·
istration compare with the relatively small gains in such
loans during 1954.
Other loans to individuals (largely consumer) increased at
an accelerated rate during 1955, but apparently the credit
extensions were on a selective basis. The increases in con·
sumer loans occurred chiefly in holdings of retail antomobile
instalment loans and in cash instalment loans. These increases
reflected the heavy demand for and sales of automobiles and
other consumer durable goods, combined with the easing of
terms on automobile paper. During the course of the year, as
the pressure to sell automobiles was intensified, down payments were rednced largely through the overvaluation of
trade-in allowances on used cars; moreover, the pay-out
period was lengthened considerably. Hence, the reduction in
monthly repayments on individual notes caused total repay.
ments to fall further behind new extensions of credit.
Other retail instalment paper and repair and modernization
loans remained at fairly stable levels throughout 1954 and
1955, as extensions of new loans were in about the same
volume as the monthly repayments. Single.payment loans to
individuals, which increased substantially and consistently
during the first three quarters of 1955, decreased about
$94,000,000, or 27 percent, in the fourth quarter; and the
year·end total of $257,000,000 was $34,000,000 lower than a
year earlier. Available information indicates that much of
tMs decrease was occasioned by a reclassification of loans in
this category at tbe end of Lhe year, resulting in the transfer
of a sizable volume of loans to the "a1l other" category. This
factor also accounted for most of the reduction in the total
of other loans to individuals (largely consnmer) that
occurred in the final quarter of the year.
In response to the credit requirements growing out of the
business needs generated by a rapidly expanding economy,
commercial and industrial loans showed a steady and sub·
stantial growth during the year, greatly exceeding the rate
of growth that occurred in the preceding year. The increase
was general among all types of businesses and occurred at
both reserve city banks and country banks. Moreover, the
seasonal red uction which ordinarily occurs in the first half
of the year failed to materialize in 1955, as new loans were
made in sufficient volume to more Ihan offset the seasonal
iiquidation. For the year as a whole, the gain in dollar volume
was larger than in any other category of loans and constituted
nearly four·fifths of the increase in total loans.
While a detailed classification of commercial and industrial
loans at all District banks is not compiled, the data obtained
from the weekly reporting member banks - the loans of
which constitute more than 60 percent of the District total
- reveal some of the more important trends in loans to the
various types of businesses. As firms expanded their activities
in response to the stimulus afforded by a rising demand for
MONTHLY BUSINESS REVIEW
37
SELECTED COMMERCIAL AND INDUSTRIAL LOANS OF WEEKLY REPORTING MEMBER BANKS, 1955 AND 1954
Eleventh Federal Reserve District
(last Wednesday of each month. In thousands of dollars)
Manufacturers of
petroleum and
related products
Month
1955
January .... ... .. . .. . $261,942
February .•••••.••••• 266,291
March •••••••••••••• 270,452
April ••• o
268,866
May .. . ............ 266,905
June ••••••••••••••• 263,829
July ................ 263,770
271,218
August • •••••••••••••
September •••••••••• 276,229
October . • •••••••••• 275,096
November ••• • ••••••• 274,193
December .•.•••••••. 273,802
.0 •• 0
•
•
0
•
•
•
1954
$253,488
256,4 12
256,128
246,827
244,865
250,438
243,696
248,083
250,047
249,844
254,241
261,130
Other
Trade
manufacturers
establishments
1955
$113,930
1 12,304
120,381
119,787
123,168
123,790
126,154
125,373
122,396
135,649
131,864
125,525
1954
$120,451
117,053
119,628
110,756
106,412
107,655
109,434
110,578
115,934
119,283
118,932
115,734
goods, they came to rely more heavily upon bank credit to
assist in financing their operations. Within the partial list of
commercial and industrial classifications in the accompanying
table, trade establishments, construction firms, and sales
finance companies increased their use of bank credit most
rapidly.
The expanded loans to sales finance companies resulted
largely from developments in the automobile industry and
trends in automobile financing, as already indicated. Currently, automobile paper held by finance companies in the
United States, as estimated by the Board of Governors of
the Federal Reserve System, is nearly 90 percent of their
outstanding credits and constitutes about 56 percent of all
automobile instalment credit outstanding. As automobile
financing needs grew and the cost of borrowing in the open
market increased, sales finance companies turned to banks
for additional funds. The year's increase in borrowings of
sales finance companies from the District's weekly reporting
member banks amounted to about 38 percent, bringing the
total outstanding to $154,155,000 on December 28, 1955.
This increase contrasts with a decline in the first half of
1954, when sales finance companies turned to borrowing in
the open market and paid off a portion of their bank loans.
1955
1954
$161,804
164,611
174,525
180,550
181,553
184,506
191,789
195,457
199,720
209,327
210,796
201,652
Sales finance
Construction
firms
1955
1954
1955
$150,906
151,880
158,437
160,922
163,390
164,151
158,399
160,519
165,748
170,092
169,855
164,531
companies
$215,378
224,304
215,200
222,694
223,488
242,492
251,310
240,815
249,499
253,429
255,107
257,91 I
1954
$ 99,684
$113,873
114,902
119,576
121,717
127,244
131,757
137,366
138,048
140,547
137,296
138,008
154,155
$150,753
150,436
155,225
161,622
168,769
172,730
175,323
183,197
181,758
183,213
188,270
208,775
90,489
97,624
101,945
99,669
107,336
106,999
107,928
108,257
104,341
106,158
117,322
Trade establishments (wholesale and retail) also shared
in the rising tide of consumer expenditures, which served as
the largest single activating agent in creating last year's
record volume of economic activity. Inventories and receivables of trade establishments rose substantially during the
year; since they are the principal assets requiring bank
financing, these firms also increased their borrowings. Total
loans to trade establishments at the end of 1955 amounted
to $202,000,000, reflecting a 22'percent gain for the year.
The District member banks made extensive adjustments
in their holdings of Government securities to release reserves
for meeting the heavy loan demand. For that reason, the
pattern of changes in their investment portfolios during 1955
differed markedly from that in 1954, when reserves were
plentiful enough to permit the banks to meet the loan demand
and to make substantial additions to holdings of United States
Government securities. Hence, the increase of $216,000,000
in Government security holdings during 1954 contrasts rather
sharply with the decline of $274,000,000 in 1955, of which
LOANS AND INVESTMENTS
MEMBER BANI<S-El.EVENTH FEOERAL. RESERVE DISTRICT
, ILl." 0 NS 0 DO L LARS
Loans to construction firms, largely for interim financing
while buildings were being erected, also moved up sharply,
coincident with the substantial rise in all types of construction
work. The year-end total of loans to construction firms,
which amounted to $258,000,000, was up about 23 percent
from that at the end of 1954. Construction activity was a
prominent feature of the expanding economic landscape during 1955, and construction firms generally resorted to bank
funds to finance construction projects until a contract could
be completed and accepted or the ultimate purchaser paid for
the property. In this way, as well as through the financing
of the ultimate purchasing, bank finance played an integral
part in the larger volume of housing and other construction
credit; in particular, the allocation of funds to builders played
a significant role in the building industry.
•
4
IL J_
J. "","" I I
---~IN VESTMENTS
4
V
LOANS ~
3__
,
•
ILLI ON S OF DOL L"!!
I
---_
.-
-
2
Ilc.
1953
'~.
J~".
1954
'"
Otc.
'~.
" .~
1955
"
,:!.
MONTHLY BUSINESS REVIEW
38
81 percent was at reserve city banks. Even more significant
was the marked shift in the composition of the investment
portfolios during the 2 years. One of the chief characteristics
was the large changes in holdings of Government securities
from quarter to quarter, which indicated frequent and sub·
stantial shifts in holdings among the various classes of
securities.
In 1954, when member banks added $408,000,000 to holdings of Treasury bonds, the major net changes included a
decline of $257,000,000 in bonds maturing in less than 5
years and increases of $602,000,000 in bonds maturing in
5 to 10 years and $67,000,000 in bonds maturing in 10 to 20
years. On the other hand, the decline of $60,000,000 in holdings of Treasury bonds in 1955 reflected an increase of
$127,000,000 in bonds maturing in less than 5 years, which
was more than offset by a reduction in bonds maturing in
5 to 10 years.
Holdings of Treasury bills also declined sharply in 1955,
the net reduction for the year being $127,000,000. The de·
crease would have been somewhat larger except for moderate
additions to holdings of Tax Anticipation bills toward the
end of the year. Nearly two-thirds of the decline occurred
at reserve city banks; the year-end holdings of bills by such
banks constituted only 26 percent of the total. Holdings of
certificates of indebtedness showed a further sharp decline in
1955, with the year-end total of $87,000,000 reflecting a
decrease of about 60 percent at both reserve city banks and
country banks. This decline was occasioned, in part, by the
Treasury refunding of maturing obligations into Treasury
notes and other securities, but reserve city banks also made
a moderate reduction in their holdings of Treasury notes.
However, the net increase in holdings of Treasury notes by
country banks raised the total at all banks by $48,000,000
during the year. Other investment holdings increased about
$60,000,000, or 12 percent, during 1955, after increasing
$54,157,000 in the preceding year.
Despite the sizable liquidation in investments, member
banks, particularly the reserve city banks, were pressed for
EXCESS RESERVES
MEMBER BANKS · ELEVENTH FEDERAL RESERVE DISTRICT
MILLIONS Of' DaLLA"'
120
WILL IONS OF DOLLARS
120
40~------~
1 9~04~------L-------~19~OO~----~40
reserves to meet the heavy loan demand. In the early part of
the year, when the drain on deposits coincided with the continued expansion in loans, the banks utilized some of their
excess reserves, and an increased number of banks resorted to
borrowing from the Federal Reserve bank. The size of such
borrowings was somewhat larger than in the preceding year.
Borrowings after July were especially heavy, as the banks
were trying to meet the greater than seasonal demand for
loans in the face of the tight reserve situation. In fact, reserve
city banks had sizable amounts of average net borrowed
reserves during each of the remaining months of the year.
While only a small number of banks borrowed from the
Federal Reserve bank at anyone time, the number of borrowing banks and the average amount of borrowings increased as the year advanced and were much higher than
in 1954.
It should be noted that country banks as a group maintained
a relatively large volume of excess reserves throughout the
year, the monthly average ranging from a high of $63,000,000
in April to a low of $47,000,000 in October_ In fact, average
excess reserves of country banks in this District were relatively high as compared with those in most other districts_
Nevertheless, there were a few country banks which turned
to the Federal Reserve bank for loans to meet reserve deficiencies.
The net increase in earning assets, which was weighted
with high-yielding loans, and a rise in interest rates on principal classes of loans and investments combined to produce
an increase of $31,880,000 in earnings from current operations compared with those in 1954. The principal gain of
$24,053,000 was brought about by the rising volume of loans
extended at higher interest rates. At the same time, the
increase in current operating expenses absorbed about onehalf of the net gain in earnings from current operations.
Despite the large gain of more than $16,000,000 in net
earnings from current operations, net profits for the year
showed a decline of $3,000,000. In this connection, it should
be pointed out that in 1954, when security prices were at a
high level, member banks realized profits from the sale or
redemption of securities in the amount of Sl6,587,000, and
other recoveries brought total recoveries and profits to
$26,432,000. This amount was nearly sufficient to offset total
losses and charge-offs during the year, permitting the banks
to carryover to net profits before taxes all of their net earnings from current operations_
In 1955, a different situation developed_ Most issues of
Treasury bouds were selling below par, and the downward
trend in prices which began in the fall of 1954 was not reversed until August. Since most of the bonds which had been
acquired in 1954 could be sold only at a loss, member banks
generally retained most of their bonds and sought to obtain
needed reserves, insofar as was possible, by disposing of
short-term paper and securities _ Moreover, miscellaneous
recoveries were down substantially from those in 1954, so
that total recoveries an d profits of $8,990,000 in 1955 were
only slightly more than one-third of those in the preceding
yea r_ At the same tim e, total losses an d charge-offs of
529,136,000 were up 2,557,000 from the year before_ Conse-
MONTHLY BUSINESS REVIEW
EARNINGS AND EXPENSES OF MEMBER BANKS
Eleventh Federal Reserve District
(In thou$ands of dollars)
NET CHANGE
Item
19S5p
Int erest and dividends on securities .. .. .. ..... . $ 65,625
Interest and discount on loons........... . . . ... 179,581
Service charges on deposit accounts............
12,875
1954
$ 3,483
30,537
OPERATIONS.................. . .......
288,61 a
256,738
31,880
Salaries and wages ........................ .
82,529
5,454
1,145
8,929
TOTAL EARNINGS FROM CURRENT
Taxes other than net income •... . ..•... .. .....
15,242
All other expenses ......................... .
76,046
77,075
14,097
67,117
24,053
914
3,430
TOTAL CURRENT OPERATING EXPENSES.....
173,817
158,289
15,528
NET EARNINGS FROM CURRENT OPERATIONS.
114,801
98,449
16,352
Totol recoveries, transfers from valuation
reserves, and profits . ................. .. . .
Totollo$ses and charge·ofh and tronsfen to
valuation reserves ....................... .
ProAts before income taxes ..... . .. . ......... .
Taxes on net income .............. . . ... .... .
8,990
26,432
-1 7,442
29,136
94,655
39,390
26,579
98,302
40,038
2,557
-3,647
-648
55,265
58,264
-2,999
26,707
22,973
3,734
NET PROFITS ••. ... .............•... . .•
Cash dividends declared l
... . .... . ......... .
than that at reserve city banks, while the increase in losses
and charge.offs was somewhat larger. After adjusting for
income taxes, net profits in 1955 as compared with 1954
showed a decline of $1,675,000 at reserve city banks and
of $1,324,000 at country banks.
1955 over 1954
$ 62,14'
155,528
11,961
27,107
All other earnings. ... . .......... ... ........
39
rJ;;"~~~~~i~~7r~SI on capitol notes and debentures.
quently, net deductions of $20,146,000 from net earnings
from current operations reduced profits before income taxes
to $94,655,000, or $3,647,000 below those in 1954.
Experiences of reserve city and country banks showed
some significant dilIerences in operating results in 1955
compared with 1954. At reserve city banks, where the reduc·
tion in security holdings was more pronounced and occurred
in those categories in which the rise in yields was larger, the
increase in intcrest and dividends received from securities was
relatively small, being only one· third of that registered at
country banks. On the other hand, about 57 percent of the
increase in earnings derived from interest and discounts on
loans occurred at reserve city banks. This gain reflected the
greater percentage increase in loans at reserve city banks,
where the increase occurred chiefly in those categories where
the higher rates were most quickly applied to customer paper.
The increase in expenses at country banks in 1955 was
larger than that at reserve city banks, primarily because of
the much larger increase in salaries and wages. The decline in
recoveries and profits at country banks was much smaller
Dividends declared by member banks in 1955 amounted
to $26,707,000, which exceeded the total for the preceding
year by $3,734,,000. The higher dividends coincident with
the lower net profits reduced the amount of net profits carried
over to capital accounts to $28,558,000, representing a decline
of $6,733,000 from the 1954 record total of $35,291,000.
Nevertheless, total capital accounts rose $75,000,000 to a
new peak of $681,000,000. The sale of new stock, which also
was in record· breaking volume in 1955, was a widespread
development among member banks in the District. This de·
velopment was a reflection of the desire on the part of many
banks to maintain the growth in capital accounts in line with
the growth in deposits and to be in a better position to serve
the needs of customers. With the rapid growth of the south·
western economy and the increasing size of the bushless unit,
the size of the line of credit needed by business concerns has
tcnded to expand.
In summary, it may be stated that banking developments
in 1955 were characterized by a slower rate of growth in
principal asset and liability items than in 1954; a substantial
expansion in loans, both actually and in relation to deposits;
a sharp decline in investments; a substantial increase in
earnings from current operations but a moderate decline in
net profits; and a record increase in capital accounts. As
monetary and credit policy shifted from the maintenance of
ease ill the money market to the restraint of inflationary
developments, increasing pressure was placed upon the reserve positions of member banks. As a means of obtaining
reserves to expand their loans, member banks liquidated a
portion of their holdings of securities, particularly the shortterm issues, and resorted to heavier and more sustained
borrowing from the Federal Reserve bank. In the process,
there was a declinc in the liquidity of the banking system, as
indicated by a rise in the ratio of loans to deposits and a
decline in holdings of short· term investments. With these
features highlighting the year, Eleventh District member
banks, along with those in other sections of the country,
experienced the gains - as well as the pressures - of bank·
ing in prosperity.
MONTHLY BUSINESS REVIEW
REVIEW OF BUSINESS, AGRICULTURAL, AND FINANCIAL CONDITIONS
Retail sal.e s at department
stores in the Eleventh District in
January continued above those
of a year earlier, although
unfavorable weather curtailed
buying during the month. Consumer durable goods
generally showed a better sales record than soft
goods. End-of-month department store inventories in
January were 77 percent above those on the same
date last year; merchandise on order was up 3 percent. Sales at District furniture stores were 4 percent
higher than a year ago.
Moisture conditions in the eastern third of the District, except in parts of south Texas, are ample for
planting and sprouting of spring crops. Agricultural
prospects are improved as a result of precipitation
during the past month, but more rain is needed. The
number of all cattIe and calves on farms and ranches
in the District states as of January 7, J 956, was
larger than a year earlier.
Declining stocks, except for gasoline, and the high
level of demand continued to stimulate oil activity
throughout the Nation . District crude oil production
increased slightly, and refining activity made a substantial gain in early February. Moreover, the March
oil allowables for Texas show only a negligible
decline from the February level. Consequently, with
an allowance for new wells, production in March is
likely to advance further.
Total nonagricultural employment in the District
states during January, at 3,970,100, reRected only
a normal seasonal decline and was at a record level
for the month. Manufacturing employment decreased
to 746,600, mainly as a result of the continued seasonal decline in food-processing activity.
The value of construction contracts awarded in the
District during January was up 23 percent from the
p~evious month. Residential construction accounted
for most of the increase, with a gain of nearly 34
percent, while ·'all other" awards were up 16
percent.
Total loans of the District's weekly reporting member banks declined seasonally in the 4 weeks ended
February 15, led by a 2.2-percent reduction in commercial, industrial, and agricultural loans. Total investments decreased $16,275,000, with the principal decrease in holdings of Treasury bills.
Consnmer buying in the Eleventh
Federal Reserve District during Jan.
uary and the first half of February
continued slightly above a year
earlier, although sleet and snow over
many parts of the area sharply curtailed buying for several
days. The dollar volume of sales at department stores in Janu·
ary was down seasonally from the heavy sales of December
but was 2 percent larger than in the corresponding month
last year.
The adjusted index of department store sales during Janu·
ary amounted to 144 percent of the 1947·49 average, or
slightly below the level in December, and compares with 141
in January 1955.
Sales of homefurnishings during January continued to
make a better showing than the sales of soft goods items. The
major household appliance department made the most out·
standing showing, with sales 24 percent above those of a year
earlier, while sales of domestic floor coverings and furniture
and bedding were up 9 percent and 1 percent, respectively.
However, sales of television sets continued to decline for the
fourth consecutive month and in January were down 31 percent from a year ago.
In the soft goods departments, sales of small wares led in
percentage gains, with an increase of 5 percent from January
1955. Sales of women's and misses' ready.to.wear accessories
were up 3 percent. On the other hand, sales of men's and boys'
wear continued to show weakness and were down 5 percent
from a year ago.
RETAIL TRADE STATISTICS
(Percentage change)
Line of trade
by area
NET SALES
STOCKSl
Jan. 1956 from
Jon. 1956 from
Jan.
Dec.
1955
1955
2
9
3
-56
n.o.
-56
-57
-61
-54
-49
-55
-59
-59
4
19
-6
-18
4
-12
0
22
-1 2
16
-39
-3
-42
-40
-52
18
-43
-32
-6
-35
22
32
-29
-29
Jan.
1955
Dec.
1955
DEPARTMENT STORES
Total Eleventh District...............
Corpus Christi............... .. .....
Dallas... .. . • • .. . . . . . . . • . . .. . . ... •
EI Paso. . . . • • . . . . • • . • • • • • . •• . . .• . •
Fort Worth... • .. . . • • .• . . • . • . • . • . . •
Houston. • . . • • • . . . . . . . • • •. . •• •. . • .
San Antonio. . . • • • . . • . . . • . . . • • . . . • .
Shreveport, la. . • • • • • . . • . .• . • • • . . • •
Waco............ ••••• ••.• •. . •. .•
Other cities . • . • . . . • . . • • • . • . • • . . . . •
0.0.
-2
1
0
6
-2
6
17
n.o.
21
10
17
17
6
15
23
18
0
n.o,
-3
-3
5
0
-5
I
-2
9
FURNITURE STORES
Tolal Sevenlh District...............
Amarillo.. ... . ... . ••.•• ••.•. . •••• •
Austin. • • • • •• • ••• • • •• •• • .•• • • ••. • •
Dallas... • • • • • •• • • • . . • • . • . • . • • . • • •
Houston. • • • . • .• . • • • . . . • . . . . . • . • . •
lubbock.. ... . .............. .. ....
San Antonio .. . ..• • ••••• •••• • . , . ...
Shreveport. la.... .... ••••.• •••....
Wichita Fall!. • . . . . • • . • . . . . . . . . . . . .
Other cities. • . . . . . • . . • . • . . . . . . . . . •
HOUSEHOLD APPLIANCE STORES
Tota l Eleventh District.... • •. . .......
Dallas....................... . . .. .
I Stocks at end of month.
n.c.-Not available.
8
18
17
-3
0
0
2
-I
6
5
7
10
-5
6
3
I
MONTHLY BUSINESS REVIEW
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
(1947-49
=
Area
SALES-Dail y averag_
Ele't'enth District • •.. . •. . .•. .
Dallas ..........•........ .
Houston ••••••••••••••••• •
moisture for planting and sprouting of spring crops. Most
counties in south Texas and in the southern Edwards Plateau
area received little moisture, and rains are urgently needed_
1001
UNADJUSTED
ADJUSTED'
Jan.
Dec:. NaY, Jan. Jan. Dec. Nov. Jan.
1956 1955 195$ 1955 1956 1955 1955 1955
114
109
129
246r
236
268
155
152
175
l11r
1I1r
144
136
163
139
158
136
132
154
Ulr
122
165
122r
160p 158
149
137r
146r
138
154
STOCKS-End of month
Eleventh District •. •....•..••
I
142p 142
41
Adjusted for seosonol voriation.
r-Revised.
p-Pr.liminary.
InsLalment accounts outstanding at District department
stores decreased 1 percent during January, which is somewhat less than other January decreases of recent years_ Compared with a year ago, month-end balances outstanding were
up 15 percent. Instalment account collections in January
amounted to 13 percent of first-of-month balances, the same
as in both December and January 1955_ Charge accounts
outstanding at the end of January were 20 percent lower than
in the preceding month but were 4 percent above a year ago_
Collections during the month amounted to 45 percent of
first-of-month balances, or 2 percentage points below December collections_
During January, department store inventories in the District remained virtually unchanged from the record year-end
high of 1955 but at the end of the month were 17 percent
higher than a year earlier. On January 31, orders outstanding
were at a level 3 percent above the corresponding date in
1955 and were up 15 percent from the end of December.
Sales at District furniture stores in January, although down
seaso nally from December, were 4 percent over the yearearlier level. After a moderate increase in December, accounts
receivable showed a small decline during January and at the
end of the month were 13 percent higher than on the comparable date last year_ Collections during January were 4
percent larger than during December and were approximately
11 percent above those in January 1955. For the eleventh
consecutive month, furniture stores reported that end-ofmonth inventories were higher than a year earlier; stocks in
January were 8 percent more than in the same month a year
ago.
New car regi strations in the Dallas, Fort Worth, Houston,
and San Antonio metropolitan areas in January, although
slightly above those of a year earlier, were lower than in any
other month since Fehruary 1955. Compared with December,
new car registrations in thcse four areas during January
were down 20 percent.
Following the moisture received in
late January, additional snow and
rain during February substantially
improved agricultural prospects in
a major portion of the District. Precipitation falling east of a line between Fort Worth and Austin,
Texas, and southeastward to the Gulf Coast provided ample
Crop prospects in the High Plains areas of Texas and New
Mexico - particularly south of the Canadian River - are
improved as a result of light to heavy snows. However, moisture is needed north of the Canadian River, where the snowfall
tapered off and drifted badly. Heavy snows were received in
the Low Rolling Plains, but more precipitation is needed to
replenish subsurface moisture supplies.
As a result of the cold, damp weather, farm work in the
District during the major part of February was limited primarily to caring for livestock and to activities in winter
commercial vegetable areas, where soils were dry enough to
cultivate. A substantial acreage of watermelons and cantaloupes has been planted in south Texas, and the onion crop
is making satisfactory development.
Prospects for late-winter and early spring grazing brightened as a result of the moisture. Pastures and small grains are
providing feed in the eastern portion of the District, and
wheat fields may provide late grazing in areas south of the
Canadian River. Drought-stricken ranges in Arizona, New
Mexico, and western Texas benefited from the precipitation,
but forage remains poor in south Texas and the Edwards
Plateau. Despite an increase in supplemental feeding during
the first part of February, some shrinkage of livestock occurred. In the northwestern parts of the District, death losses
as a result of the blizzard were light and were confined mostly
to newborn calves.
The United States Department of Agriculture indicates,
as of February 1, that the 1956 Texas production of cauliflower, lettuce, and cabbage will be 25 percent, 32 percent, and
16 percent, respectively, above the 1955 output. The carrot
crop is forecast at 3 percent below that in 1955, and estimated
broccoli production is 8 percent smaller.
LIVESTOCK ON FARMS AND RANCHES, JANUARY 1
Texa s, Five Southwestern States, and United Slates
(In thousands}
Five southwestern
stoles l
Texas
Co ttl •• •.• ••••••
Milk cottle ••.•
B••f coul •. ..•
Sheep ••••..••• •
, ,Stock sheep • .•
F•• ders ••••••
Hogs •••.......•
Goats •• •..••.• .
Horses and mules.
Total above
species •..•• ..
Chickens' .... •••
Turkeys •••••••• •
Unlt.d States
1955
1956.
1955
1956p
1955
8,586
1,248
7,338
5,208
4,979
229
1,100
2;775
298
8,501
1,292
7,209
5.659
5,354
305
982
2,546
314
15,987
2,575
13,412
7,287
6,873
414
2,107
15,829
2,687
13,142
7;758
7,265
493
1,809
96,592
35,361
61,231
n.o.
n.a,
657
707
97,465
34,877
62,588
31,109
27,009
4,100
55,088
n.o.
3,962
17,967
15,335
375
18,002
16,288
375
26,038
25,843
510
26,103
27,134
499
187,624
382,218
4,892
182,957
390;708
4,917
1956p
I Arizona, Louisiano, New Mexico, Oklahoma, and Te xas.
2 DOllS not include commerc;ial braiters.
p_Preliminary.
n.a.-Not available.
SOURCE: United States De partment of Agriculture.
31,582
27,137
-',445
50,474
n.a.
4,309
MONTHLY BUSINESS REVIEW
42
LIVESTOCK RECEIPTS
FARM COMMODITY PRICES
(Number)
Top Prices Paid in local Southwest Markets
FORT WORTH MARKET
Janoory
January
December
SAN ANTONIO MARKET
January
January
Week ended
Feb.2l,
Decemb er
Class
1956
1955
1955
1956
1955
1955
Commodily Clnd ma rket
Unit
Cattle .... •... . •
53,096
58,899
18,235
67,952
68,203
-'7.150
27,677
14,553
3,335
29,682
20,636
2,595
120,730
17, 135
13,409
2,953
18,401
conON, Middling 15 / 16· lnch, Dallas .•..
WHEAT, No.1 ha rd, Fort Worth • ........
OATS, No.2 white. Fori Worth . ........ .
CORN , No.2 yellow, Fort Warth ........ .
SORGHUMS, No.2 yellow, Fort Worth ... .
HOGS, Choice, Fort Worth . ............ .
SLAUGHTER STEERS, Choice, Fort Worth .. .
SLAUGHTER CALVES, Choice, Fort Worth •.
STOCKER STEERS, Choice, Fort Worth .... .
BROILERS, south Texas ... ........... ... .
lb.
b"
b,.
b"
cwf.
(wi.
(wi.
cwt.
(wt.
Ib,
Calves ........ .
15,290
Hogs ••••••• ••• •
87,551
74,243
Sheep ....... • . •
1
13,251
83,466
36,725
112,067
Include) goats.
The number of all cattle and calves on farms and ranches
in the United States increased 873,000 during 1955 to a total
of 97,465,000 on January 1, 1956, according to the Depart.
ment of Agriculture. The number of milk cows declined 1
percent and was the second lowest January 1 inventory since
1930; however, beef cow numbers increased to a new high of
25,758,000. The numbers of sheep, horses and mules, chick·
ens, and turkeys were below those a year earlier, but hog
numbers were 9 percent larger.
The inventory of all cattle and calves in the District states
on January 1, 1956, totaled 15,987,000, or 1 percent more
than a year earlier. The number of milk cattle declined 4
percent during 1955 but was more than offset by an increase
in beef cattle. During 1955, numbers of cattle and calves
increased in all states of the District except Oklahoma. Stock
sheep on January 1, continuing the downward trend of the
past few years, were placed at 6,873,000, or 5 percent fewer
than a year earlier. Hog numbers were 16 percent larger, and
turkeys increased 2 percent. Declines were noted in the num·
bers of horses and mules and farm chickens (excluding
broilers) .
In the referendum held January 27, growers in the District
states approved marketing quotas for the 1956 rice crop.
According to preliminary reports, 85 percent of the 5,975
rice farmers voting approved the quotas.
The index of prices received by Texas farmers on January
15 was 246 percent of the 1910-14 average, or 1 point below
that at mid·December. The all·crops index was 6 points below
a month earlier; however, most of this decline was offset by
higher prices for livestock products. In the Nation the index
of prices received by farmers at mid·January was 3 points
higher than a month earlier as a result of higher prices for
meat animals and vegetables.
CASH RECEIPTS FROM FARM MARKETINGS
1956
$
.3550
2.51 V1
.86JA
1.64'/1
2,25
12,50
19,00
19.50
1 9.00
."
Comparable Comparable
week,
week,
previous
previous
month
ye ar
$
.3395
2.47
.87
1.60'/2
2.21
12.5 0
20.50
19.50
19.00
,21
$
,3370
2.74
1.00
1.80'/2
2.71
17.75
26.00
22 .00
23,00
.26
Cash receipts from farm marketings in the District states
totaled $2,845,495,000 during the January·November period
in 1955, or 5 percent below those during the same period in
1954, Receipts from livestock were 3 percent below those in
the first 11 months of 1954, while those from crops were 7
percent smaller.
Eleventh District weekly reporting
member banks reduced their gross
loans $30,431,000, or 1.2 percent, in
the 4 weeks ended February 15; duro
ing the comparable period in 1955,
loans showed a contraseasonal rise of $19,736,000. The $35,·
154,000 decline in commercial, industrial, and agricultural
loans was larger than the total reduction in loan accounts,
as the remainder of the classifications, on balance, showed an
increase. Interbank loans, consumer credits, and securities
loans (other than to brokers) showed a net gain of $13,677,
000, which was partly offset by the nct repayments of real·
estate and brokers' loans,
As all of the Treasury securities accounts decreased in the
4 weeks, total investments declined $16,275,000. The principal
change was recorded in Treasury bill holdings, which de·
creased $12,444,000 to a level of 858,018,000 on February 15.
In the corresponding weeks of 1955, holdings of Treasury bills
diminished $63,098,000 to $60,400,000, or about the same
level as on February 15, 1956. Holdings of certificates of
indebtedness declined $6,093,000 in the 4 weeks and totaled
40,004,000 on February 15, compared with $31,615,000 on
the corresponding date in 1955. The weekly reporting member
banks reduced their portfolios of Treasury notes and bonds
fractionally during the month but substantially more from
the same time last year. Other securities advanced moderately
during the 4 weeks but showed a modest $5,284,000 decrease
from a year earlier.
Five Southwestern Stales
(In thousands of dollars)
November
January-November
Area
1955
1954
1955
1954
Arizona ••• ••.....••... .
Louisiana • ••..•.........
New Mexico .• • •....•....
Oklahoma .••....•.•.•••
Texas .••••............•
$ 49,693
53.667
30,631
70,028
349,322
$ 64,656
37.651
56,235
297,111
$ 262,427
301,656
148,610
445,042
1,687,760
$ 313,259
321,692
165,826
514,150
1.677,334
TOlal ..•.•••.•••••..• .
$553,331
$504,986
$2.845,495
$2,992,261
49,333
SOURCE: United Stales Deportment of Agriculture.
Tbe 846,706,000 decline in earning assets in the 4 weeks
represented a seasonal change. In 1955, notwithstanding an
unseasonal increase in loans induced by the upward·moving
economy, total loans and investments declined $35,111,000,
as the banks reduced their investments more heavily.
The weekly reporting banks drew down their cash accounts,
principally correspondent balances and balances at the Federal Reserve. Total assets of the banks declined 897,267,000
MONTHLY BUSINESS REVIEW
CONDITION STATISTICS OF ALL MEMBER BANKS
43
CONDITION STATISTICS OF WEEKLY REPORTING
MEMBER BANKS IN LEADING CITIES
Eleventh Federal Reserve District
Eleventh Federal Reserve District
(In million. of dollars)
(In thousands of dollar.)
Item
ASSETS
loans ond discounts • •.• • •• • •••••••••• • ••.•••••
United Slates Government obligation•••••••••••••
Other securities .•.•... • • •••. • • •••••••••••••••
Jon. 25,
1956
Jan. 26,
1955
Dec. 28,
1955
Cosh in Youl,e .•.•••• • ••••••••• •• ••••••••• •••
Balances with bonks in the United Stale•••• •. ••• • •
Balances with banks in foreign countri••••••••••••
Cosh ite ms In procen of colledion ••• •• ••• •••••••
Other assets" ••••••••••••••• • • •••••••••••••••
$3,930
2,357
567
963
141
1,003
3
446
198
$3,494
2,553
539
1,019
135
1,077
3
348
187
$3,929
2,400
568
945
164
1,107
2
420
196
Reseryes with Federal Reserve Sank ••••••••••••••
Feb. 15,
1956
Item
Feb. 16,
1955
Jan. 18,
1956
ASSETS
Commercial, industrial, and agricultural loans ••• $1,533,499 $1,442,766 $1,568,653
1,486,171
Commercial and Industrialloons l •••••••• •••
1,510,661
Agricultural loansl ••• . •••• • ••••.•• •••••••
47,328
57,992
loons to brokers and dealers In securities • • • •••
20,379
16,300
21,922
12s.o25
Other loons for purchasing or carrying securities.
104,880
127,3"0
207,546
Real-estate loans • •• • ••. • ••• • •• • ••••••• • •••
173,229
214,957
21,075
loans to banks •••••••••••• • ••••• •• ••••••••
23,205
13,"65
554,050
All other loans •••••••••••••••••••••• • •••• •
441,715
548,668
--2,495,005
TOT At ASSETS" • ••• •••••••••••••••••••••••
9,608
9,355
9,731
LIABILITIES AND CAPITAL
Demand deposits of banks ••••••••• ••. ••••• .• ••
Other demand deposits •••• . •• •••••••••••••••••
Time deposits ••. •••••• • •••• • •• •• • ••••••••••••
Gran loans ••• ••• ••••• •••• •••••••••••••
less reserves and unallocat.d charge·oft. ••
2,464,574
30,896
2,202,095
22,490
1,052
6,424
1,317
1,093
6,369
1,161
1,123
6,485
1,324
Net loans ••••••••••••• •••• •••••••••••••
2,433,678
2,179,605
Total deposits • ••••• •• •• ••••••• •• .•••••••••
Borrowlngs e •• •.••• ••••••••• •• •••••••••••••••
Other lIabllltlese •••••••••••••••••••••••••••••
Total capital accounts e •• • ••• •• ••••••••••••••••
8,793
48
80
687
8,623
26
89
617
8,932
12
81
706
U. S. Treasury bill, .... ... .. ..... .. .. . ......
U. S. Treasury certificates of lndebtedneu ••• •••
u. S. Treasury notel • • •••• ••••••••••••••••••
U. S. Go .... ernment bonds (Inc. gtd . obligations) ...
Other securities ••• ••• • •••• • • • •••••••••••••
58,018
40,004
238,119
814,84 2
242,773
60,400
71 ,619
283,434
874,393
248,057
TOTAL LIABILITIES AND CAPITAl- ••• ••••••• ••
9.608
9,355
9.731
Total Investments •••••• ••••• •••••••••••••
Cash Items In proceu of collection ••••••••••••
Balances with banks In the United States ••••• • •
Balances with bonks In foreign countries • •••• ••
Currency and coin •••••••••••• • •••• •• ••••••
Reserves with Federal Reserve Bank ••••••••• ••
Olher (Isseis ••••••••• • ••••••••••••••••••••
1,393,756
426,819
425,161
1,444
45,164
537,245
141,624
1,537,90 3
362,970
446,251
1,576
43,196
574,427
135,775
1,410,031
403,227
483,535
1,527
45,901
554,444
139,013
e-Estimated.
in the 4 weeks but showed at $123,188,000 gain from midFebruary 1955_
The $98,372,000 decline in total deposits was about the
same as the decrease in all asset accounts in the 4 weeks
ended February 15. In the same weeks last year, deposits
declined $96,681,000. Demand deposit accounts were down
SI09,041,000, and time accounts rose $10,669,000. In the
demand deposit accounts, the principal decreases were recorded in the balances of individuals and businesses (down
$56,431,000) and the accounts of other banks (down $85,647,000). The United States Government built up its demand
balances by $29,054,000 and local governments added
$5,753,000, while minor changes were indicated in the other
classifications.
Daily average gross demand deposits of member banks
totaled $7,592,370,000 in January, representing a monthly
gain of about $50,000,000 but a nominal year· to-year decline,
Country banks, whose average gross demand deposits were
$3,923,584,000, had a larger increase over December than
reserve city banks; on a J anuary.to.J anuary basis, country
banks showed a slight deposit increase, whereas reserve city
banks showed a modest $11,022,000 decline.
Debits to demand deposits in January at reporting banks
in various District centers were less than in December but
were larger than those in January 1955. The largest monthly
percentage declines were recorded at Abilene and Wichita
Falls. Banks in Monroe, Louisiana, where debits advanced 10
percent from December, reported both the largest monthly
gain and the greatest increase from a year earlier. The annual
rate of deposit turnover at the reporting banks was 20,6,
I comparcd with 20.9 in December and 19.1 in January 1955.
Reserve balances of District banks declined $41,646.000
i" Ihe 4 weeks ended February 15. Local Federal Re~rve
credit - member bank discounts and Aoat - was down
30,525
2,464,480
- 70,462
-46,097
238,837
815,176
239,459
TOTAL ASSETS ..... ....... .. . . .......
5,404,891
5,281,703
5,502,158
LIABILITIES AND CAPITAL
Demand deposits
Individuals. partnerships, and corporations ••••
United Stoles Govemment •••• • •• •• •• ••••••
States and political subdl.... lslon •••••••••••••
Banks in the United State••••••• •• ••• ••••••
Bonks in foreign countries ••••••••• • •••••••
Certified and ofAeer.· checks, etc•••••••••••
2,856,919
57,219
186,898
854,299
16,932
59,220
2,818,139
93,490
176,220
903,384
15,666
77,190
2,913,350
28,165
181,145
939,946
15,974
61,948
Tofal demand deposits ••• ••• •••• •••••••
4,031,487
4,084,089
',140,528
Time deposits
Individuals, partnerships, and corporations • •• •
United State. Government •••••• •••• ••••••
Postal savings ••••••••••••••••••••••••••
States and political .ubdivisiolU ••••••••• •••
Banks in the U. S. and foreign countries ••• •••
714,377
12,079
452
138,801
1,955
635,229
13,362
452
94,934
1,113
711,837
12,079
452
130,662
1,965
Total time deposits ••••••••••••••••••••
867,664
745,090
Total deposits •••••••• •• •• •• ••••••••
Bills payable, rediscounts, etc•• ••••••••••••••
All other liabilities ...................... . ..
Total capital accounts ............. . ........
4,899,151
31,500
64,333
409,907
4,829,179
12,700
77,304
362,520
TOTAL llA8111T1ES AND CAPiTAL ... ,., ••
5,404,891
5,281,703
856,995
-4,997,523
42,500
58,738
403,397
5,502,158
I Prior to January", 1956, agriculturallaans were not reported separately. Comparable
year-earlier figures will b. shown aSlhey become ayoilable.
$17,693,000. Interdistrict money transfers, the largest single
item affecting reserve balances, resulted in a net outflow of
$81,450,000, The effect of the return Aow of currency was
to increase balances $13,466,000, while other deposits and
accounts changed slightly. Aggregate reserve balances a year
ago equaled $979,914,000 - or about $42,000,000 more than
on February 15 - an indication of the heightened pressures
GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
Eleventh federal Reserve District
IAyeroge. of daily figures. In thousands of dollars)
COMBINED TOTAL
Date
Jan. 1954 ••••
Jan. 1955 ....
Sept. '955 ... .
Oct. 1955 ....
Nov. 1955 ....
Dec. 1955 ....
Jan. 1956 ....
Grall
demand
TIm.
RESERVE CITY 8ANKS
Gron
demand
Time
COUNTRY BANKS
Gross
demand
$7,232,657 $ 993,495 $3,517,349 $561,053 $3,715,308
7,594,952 1,155,178 3,679,808 644,814 3,915,144
7,195,579 1,271,089 3,517.182 7"8,666 3,678,397
7,30",808 1,260,7"9 3,589,745 736,233 3,715,063
7."09,551 1,275,205 3,586,763 747,023 3,822,788
. 7,541,113 1,309,060 3,656,903 764,200 3,884,210
7,592,370 1,320,779 3,668,786 763,407 3.923,584
Time
$432,442
510,364
522,423
524,516
528,182
544,860
557,372
MONTHLY BUSINESS REVIEW
CONDITION OF THE FEDERAL RESERVE BANK Of DALLAS
BANK DEBITS. END-Of-MONTH DEPOSITS
AND ANNUAL RATE Of TURNOVER OF DEPOSITS
(1 n thousand s of dollars)
(Amounrs in thousands of dollarsJ
OE8ITS L
Percentage
Annual rat. of turnover
change from
January
Area
1956
Item
Feb. 15,
1956
Feb. 16.
1955
Jan. 18.
1956
Total gold certificate reserves •.•• .•....... . .
Discounts for member banks . . .... ... ...... .
Other discounts and advances . ••...........
U. S. Government securities ................ .
Totol earning assets ........ ......• . ... . .. .
Member bank reserve deposits .... ......... .
Federal Reserve notes In actual circulation .... .
$710.678
22.750
510
936.110
959.370
938.121
687.535
$ 793.591
7.900
5,640
932,525
946,065
1,043,044
721,224
$705.612
37,750
51
949.904
987.705
979.767
703.405
DEPOSITS'
Jan. 31,
Jan. Dec.
1955 1955
1956
Jan. Jan. Oec:.
1956 1955 1955
AR1Z0HA
Tucson ..•..•.... •••. $ 166.908
26
3
102.322
19.1
17.3
18.8
71.709
274.044
29
16
10
0
50.227
195.091
16.3
16.9
14.6
15.2
15.1
17.3
30.818
9
-1
28.391
13.1
10.9
13.3
76.102
19 -17
161 .416
8
-6
150,155
7
2
142.463
20
7
_2
2
176,825
16.693
4
-5
2,336,600
7
2
5
245.337
-8
709.169
17
-1
83.156
2
-2
2.208.793
21
-1
21.877
5 -2
160.141 -10 -6
56.939
12
-2
45.111
7
-6
10
-1
496.837
19,492
8
-5
79.538
17 -9
2
-2
90.927
98.976
2 -14
59.343
109.556
114.547
112.086
108.037
22,020
985.839
132.278
366.283
67.673
1.218.274
19.505
102.062
45.737
46,710
346.154
17,925
58.894
69.345
107.840
15.2
17.5
15.4
15.1
19.8
9.1
27.0
22.0
23.3
14.3
21.1
13.6
18.7
15.5
11.6
17.2
12.7
16.0
14.4
13.8
19.0
8.5
26.0
20.8
20.6
14.3
18.4
13.0
19.1
15.0
10.8
16.1
12.8
12.1
16.0
15 .6
10.8
13.8
15.1
10.8
16.9
18.8
1 5.0
14.5
19.2
9.6
26.4
24.0
23.3
1.4.2
21.6
13.9
20.8
15.6
12.5
17.3
13.6
17.8
16.1
12.7
$4.486.139
20.6
19.1
20.9
LOUISIANA
Monroe .••••••••••• •
Shreveport •.••••••••
HEW MEXICO
Roswell •••••••••••.•
TEXAS
Abilen ••••••••.••••.
Amarillo ..•••• .•••••
Avltin • . •. .•• • .••...
Beaumont •••••••••• •
Corpus Christi ••••••••
Conlcana ••.. .•••• • •
Dal las • • •• ..• •• • • , ••
EI Paso . • .• •.• ..... •
fort Worth ••••••••.•
Galveston ••••.•.••..
Houston••••••••• • • •
laredo ............ .
lubbock ....••..... •
Port Arthur ••••••••••
Son Angelo •••••••••
San Antonio •••••••••
Texarkana' .•.......
Tyl.r .•.......•.... .
Waco .•... .......••
Wichita Fall, •......•
10tal-24 cities •.....•• $7.920.026
12
-1
Debits to demand depasit accounts of individlKJls, partnerships, and corporations and
of states and political subdivisions.
I Demand deposit accounts of indi'liduals, partnerships, and corporations and of ,tates
Qnd political subdivisions.
, These flgu res Include only one bank In Texarkana, Texas. Total debi" for all banks in
Texarkana, Texas· Arkansas, including two banks located in the Eig hth Distrid, a mounted to
$40,369,000 for the month of January 1956.
1
on reserve balances which have developed during the past
year.
The Federal Reserve Bank of Dallas owned total earning
assets of $959,370,000 on February 15, reflecting a $28,335,·
000 decline in the 4-week period. Member bank borrowings
were reduced $15,000,000, while holdings of United States
Government securities declined $13,974,000. Currency in
circulation declined to $687,535,000 and on February 15
was about $34,000,000 below last year's totaL Total gold
certificates, this bank's legal reserve, rose about $5,000,000
in the 4 weeks but declined $82,913,000 from the corresponding date in 1955.
CHANGES IN FACTORS AfFECTING MEMBER BANK RESERVE BALANCES
Eleventh Federal Reserve Dislrict
(In thousands of doll an)
CHANGEl
4 weeks ended
Dec. 28, 1955-
Feb. 15, 1956
Feb. 15, 1956
-$17.693
- 81,450
+ 44.195
+ 13.466
343
+
179
+$ 16,717
- 228,283
+ 146.283
+
53.984
142
+
2.502
-$41.646
-$
FACTORS
Federal Reserve credit-local •.•• . •....• . ... . ..•
Interdlstrict comme rclal and flnancial transadioru . ..
Tre asury operations •.• . ... .............•.•.•..
Curre ncy transactions .•.•.... ... • .•. . ... . •....•
Other deposits at Federal Reserve Sank ... .. ... . .
Other Federal Reserve accounts •.. •......• . . ..• .
RESERVE BALANCES
Janua ry 18, 1956.... ..........
February 15, 1956 .... . ..... ...
1
$979,767
$938,121
Sign of change Indicates effect on reserve balances.
8.939
NEW MEMBER BANK
The First National Bank 0/ Dumas, Dumas, Texas,
a newly organized institution located in the territory
served by the Head Office 0/ the Federal Reserve Bank
0/ Dallas, opened lor business January 30, 1956, as a
member 0/ the Federal Reserve System. The new bank
has capital 0/ $150,000, surplus 0/ $100,000, and undivided profits of $50,000. The officers are: James M.
Crabb, Chairman 0/ the Board; P. F. Younger, Vice
Chairman of the Board; Jacle C. Elliott, President; F. C.
Harlow, Vice President; James W. Witherspoon, Vice
President; and James D. Matthews, Cashier.
NEW PAR BANKS
The First State Bank, Groves, Texas, an insured,
nonmember bank located in the territory served by the
Houston Branch 0/ the Federal Reserve Bank 0/ Dallas,
was added to the Par List on its opening date, February
3,1956. The officers are: J. T. Hitt, President; Jimmie
Lee, Executive Vice President; and Joe C. Terry,
Cashier.
The Parleer Square State Banle, Wichita Falls, Texas,
an insured, nonmember banle located in the territory
served by the Head 0 IJice a/the Federal Reserve Banle
0/ Dallas, was added to the Par List on its opening date,
February 4, 1956. The olJicers are: C. B. Johnson, President, and Charles B. Jo"nson, Cashier.
Activity in the Nation's oil industry continued at record levels in
January and early February. Stimulated by vcry strong demand for
distillate fuel oils, production and
refining activity remained close to the December and early
January highs. In the District, crude oil production in early
February averaged 3,376,000 barrels per day, or slighlly
above both January this year and February 1955. It is likely
that District crude oil production will increase further. March
oil allow abIes for Texas were reduced only 16,838 barrels
per day to a total of 3,366,238 barrels, with the allowable I
for new wells expected to increase the total above the February figure. Crude oil production in the ation in early February averaged 7,081,000 barrels per day, or slightly above
January and 4 percent above February 1955.
MONTHLY BUSINESS REVIEW
45
CRUDE OIL, DAILY AVERAGE PRODUCTION
NONAGRICULTURAL EMPLOYMENT
(In thousand, of barrels)
Five Southwestern Stolesl
Percent change
Jan. 1956 from
Change from
Number of persons
January
Area
elEVENTH DiSTRiCT .•......
TeJlos. .. •• •.•..• . . . ... .
Gulf Coost •..•....... .
West Texas . .. ..... ...
Ead Texas (proper) .. . ..
Panhandle .•......... .
Rest of State . •........
Southeastern New Mexico . .
Northern louisIana •••... •.
OUTSIDE ElEVENTH DISTRICT.
UNITED STATES • •••••• ••• • •
January
1956 1
December
1955'
3,289.8
2,9-13.8
616.3
1,188.0
223.5
92.2
823.8
228.3
117.7
3,727.8
7,027.6
3,331.8
2,998.5
635,9
',179.4
237.2
87.1
858.9
216.3
117.0
3,429.5
6,761.3
January
1955 1
December
1955
1955
3,280.3
2,936.7
601.9
1,172.0
223.3
90.3
8-19.2
227.0
116.6
3,675.4
6,9557
-42.0
Type of employment
-54.7
-19.6
8.6
-13.7
5.1
-35.1
12.0
.7
298.3
266.3
9.5
7.1
14.4
16.0
.2
1.9
-25,4
1.3
1.1
52 .4
71.9
SOURCES, I Estimated from American Petroleum Institute weekly reporh.
! United Star., Bureau of Mines.
Refining activity in the District showed a substantial increase during early February, with crude runs averaging
2,394,000 barrels per day - or 5 percent above the January
level and 6 percent above the level in February 1955. In the
Nation, crude runs to refinery stills averaged 8,014,000 barrels per day in early February, almost unchanged from J anuary but 6 percent above the year-earlier total.
This rising level of refinery activity has caused a steady
increase in gasoline stocks, which on February 17 were 7
percent above the high level of a year ago. Distillate fuel oil
slocks were also moderately above the year-earlier total but
have been declining in recent months. On the other hand,
kerosene stocks were down moderately from a year ago, while
residual fuel oil stocks were substantially below the comparable date of 1955. Moreover, stocks of these two products
ha ve been declining in recent weeks, Stocks of the four major
refined products on February 17 totaled 325,022,000 barrels,
or 3 percent above the comparable year-earlier total.
Crude oil stocks on February 11, at 253,484,000 barrels,
were 3 percent below those on February 12, 1955, and have
been declining recently. In fact, some industry sources consider crude stocks to be below the desirable working level.
For the 5 weeks ended February 17, the demand for the
four refined products reached 7,696,000 barrels per day, or
1 percent above the year-earlier total but 7 percent below
the level in the preceding 5 weeks. A month-to-month decline
occurred in the demand for each of the products. The yearto·year increase was largely a result of the gain in gasoline
demand.
Imports in the 5 weeks ended February 17 averaged
1,378,000 barrels per day, up 5 percent from both the comparable year-earlier period and the previous 5 weeks. A
decrease in refined products imports accounted for the
month-to-month decline, while the year-to-year increase
stemmed primarily from larger imports of crude oil.
Total nonagricultural employment
in the five states lying wholly or
partly within the District declined
seasonally to 3,970,100 in January
- 113,800 below December but
January
1955r
December
1955
Jan.
1955
Dec.
1955
3,816,100
703,100
3,113,000
235,000
246,800
4,083,900
4.0
6.2
3.5
-1.6
6.2
-2.8
-.8
-3.2
-.5
-1.6
387,200
986,600
160,300
447,600
649,500
402,200
1,087.800
1.9
3.5
4.4
2.9
3.4
-1.9
-6.1
-.4
-.9
-3.4
January
1956e
Total nonagricultural
wage and Jalary workers • . 3,970,100
Monufoduring ..•.....•••
746,600
Non manufacturing ••••••• • 3,223,500
Mining . ..............
245,800
ConJtruction ..... . .....
262,100
Transportation and public
utilities .............
394,600
Trade ............. . .. 1,021,400
finance . .... ..........
167,400
Service ...............
460,400
Government ...........
671,800
752,800
3,331,100
246,900
266,200
168,100
464,700
695,200
1 Arizona, louisiana, New Mexico, Oklahoma, and Te.as.
a-Estimated.
r-Revised.
SOURCES: State employment agencies.
Federal Reserve Bank of Dallas.
154,000 more than in January 1955 and a record high for
the month. Most of the month-to-month decline was a result
of seasonal employment decreases in trade and government.
Construction employment also declined but remained well
above the level of a year ago_ A recent gain in construction
contract awards for residential building and the potential
growth of commercial and industrial construction indicate
new strength in this employment sector.
Manufacturing employment also declined seasonally but,
at 746,600 in Jal'lUary, was down 6,200 workers from December. Seasonal reductions in food-processing employment accounted for most of the manufacturing employment decrease.
Employment in other manufacturing industries held near their
December levels.
Unemployment increased seasonally in January, as workers
hired for the Christmas shopping season were released and
the winter slowdown of outside work continued. Available
data show that unemployment in Texas increased from 96,200 in December to 118,700 in January.
Construction contracts awarded in the District during January increased 23 percent above those of December to a value
of $154,979,000, or 22 percent above the level of a year
earlier. Residential construction accounted for most of the
month-to·month increase, with a gain of nearly 34 percent_
"All other" construction awards increased 16 percent from
December, as the nonresidential building component of this
group showed a contraseasonal upturn, Compared with the
same month a year earlier, residential construction awards
VALUE OF CONSTRUCTION CONTRACTS AWARDED
(In thousands of dollars)
January
January
Area and type
1956
1955
ElEVENTH DiSTRiCT .. .•......
Residential ..... . . • . •• .• • . .
All other .• .........•.. •.. .
UNITED STATESI ............ .
R e~id ential .•• •••.•••••••••
All ofher ••• •••••••••••••••
$ 15-1,979
$ 126.872
67,762
51 ,096
87,217
75.776
1,485,450
1,858,228
694,392
1,163,836
1 37 states east of the Rocky Mountains.
SOURCE: F. W. Dodge Corporation
671,355
814,095
December
1955
$ 125,739
50,596
75,143
1,920,754711 ,206
1,209,548
MONTHLY BUSINESS REVIEW
46
BUILDING PERMITS
Percentage change
In valuation from
January 1956
Area
Number
Valuation
January
December
1955
1955
ARIZONA
Tucson •••••••••••••• • •••••••
LOUISIANA
346
885,242
84
-40
Shreveport •.... . •• ••.•••• .. •
457
2,642,485
53
55
1,811,509
1,791,175
3,592,200
3,208, 114
1,851,857
24,321,168
2,797,336
2,346,175
382,141
Port Arthur . •• ..•....... •.•••
San Antonio ......••.......••
Waco •............•.......•
Wichita Foils ••......•....•.•
187
178
307
282
417
1,454
419
411
76
877
226
160
1,687
230
113
1,603,958
351,519
6,162,832
1,055,205
633,614
79
-2
21
411
-41
86
9
-25
152
-2
-36
1
8
-35
-24
1
47
59
264
22
164
- 56
7
172
79
-5
64
52
-5
-55
Totol-17 titles •.. ••• .•.•....•.
7,827
$65,582,195
26
53
TEXAS
Abilene ••• •. .• • .••••••.••.••
Amarillo •••. • •...•••.•.•..• •
Austin •••..•. ......•••..... •
Beaumont •••••••••••••••••• •
Corpus Christi ...•......• • ..••
Dallas •••••• • ••.• ••• •. ••. _••
EI Poso •.. ••• .• ••••••••• • •••
Fort Worth ••••••••••••••••••
Golverlon ..•• ........•••... .
Houston •••••••• • ••••••••• • •
Lvbbock •......•......•.••• •
$
10,145,665
during January were up 32 percent, and the total value of
"all other" awards was up 15 percent,
In the Nation the value of construction contract a wards
during January was down 3 percent from December but was
25 percent greater than a year ago, Residential awards declined 2 percent from December and were up only 3 percent
from a year earlier_ On the other hand, "all other" awards,
although down 4 percent from the previous month, were 43
percent above the level of January 1955, Compared with a
year ago, "all other" awards as a group displayed much
greater strength in the Nation than in the District, whereas
residential awards showed a relatively larger gain in the
District.
A recent survey by the Manufacturing Chemists' Association reveals that, of a nationwide total of $772,000,000 for
privately financed chemical plant expansion and new con,
struction completed in 1955, projects valued at $240,600,000
were completed in the District states of Louisiana, New Mexico, and Texas. In addition, the survey shows that projects
cos ting an estimated $252,100,000 are now under construction
in these three states, and there are firm plans for projects
costing $85,900,000 to be started before 1957, Not included
in these estimates are government-financed chemical projects
now under way or completed during 1955, which are estimated at $3,300,000,000 for the Nation,
Texas, with 38 of the 269 projects completed in the Nation
in 1955, accounted for $199,000,000 of the privately financed
chemical construction completed last year, The cost of 24
projects under construction in Texas, plus four others planned,
brings the total chemical plant cons truction completed in
1955, now under way, or planned for the State to a total of
$414,800,000, This is the largest chemical investment during
this period for any state and is more than 17 percent of the
national total. Organic chemical production receives the
greatest share of the Texas investment. Next, in order of
investment, are plastics and resins, inorganic chemicals, and
synthetic rubber,
DOMESTIC CONSUMPTION AND STOCKS OF COTTON
(Beles)
August-December
Area
Dec.
Dec:.
Nov.
1955'
1954
1955 1
This uOlon LeISt season
CONSUMPTION
Total
Texas mills ..........
13,340
11,490
11,443
60,462
57,364
U. S. mills .. ....•... .
855,447
801,596
741,447 3,926,014 3,697,120
Daily average
460
357
521
Texas mills ..........
534
572
37,168
35,691
33,610
U.S. mills •••••••.•••
34,218
32,064
STOCKS. U.S.-End of period
Consuming establishments. 1,699,257 1,682,232 1,553,485
Public: stofage end
(ompreSSes ....... .. . 17,592 ,790 14,026,082 16,607,483
Five weeki ended December 31 .
, Four weeks ended Novemb er 26.
SOURCE: United States Bureau of the Census.
1
@FedFRASER