Full text of Review (Federal Reserve Bank of Dallas) : March 1961
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BUSINESS
REVIEW
MARCH 1961
Vol. 46, No.3
SOUTHWESTERN CATTLE NUMBERS
CONTINUE UPWARD
Southwestern cattle numbers continued upward in 1960, marking the third year in the expansion phase of the sixth well-defined
cycle in inventories since 1895. The number of cattle and calves
on farms and ranches in Arizona, Louisiana, New Mexico, Oklahoma, and Texas has been increasing since 1958 and totaled a
record 16.9 million at the beginning of 1961. Similarly, the cattle
population in the Nation has been rising during the past 3 years
and reached a record high of 97.1 million head by the first of
this year.
The current estinlates of livestock inventories, released in midFebruary by the United States Department of Agriculture, reflect
a considerable downward revision from the previous estimates for
the 1955-59 period as a result of more complete information
obtained in the 1959 Census of Agriculture. For example, before
the 1959 census data on cattle numbers became available, USDA
estimates had placed the Nation's cattle population as of the first
of 1960 at 101.5 million head. This figure has been revised downward to 96.2 million.
Since cattle munbers are moderately below the level previously
reported, the outlook for the cattle industry for the next 2 or 3
years is viewed as being somewhat brighter. Nevertheless, the
adjustments that have already occurred in the prices of cattle
probably will exert a sobering influence upon prudent cattle raisers. The present size of the Nation's breeding herds has the potential for a large and rapid increase in beef output if producers are
so inclined.
FEDERA~
RESERVE
DAllAS ,
BANK
OF
DAtLAS
liEXAS
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
Trends in Southwestern Cattle Numbers
The stage was set for an upswing in cattle numbers
in the Southwest with the end of the drought and consequent improvement in range conditions in 1957; and by
the following year, the cattle population was increasing.
Reflecting the incidence of drought, the advance in
numbers in the five District states since the upturn in
1958 has been greater than the gain in the comparable
length of time in the previous cycle. Between January 1,
1958, and January 1, 1961, cattle inventories rose
almost 2.5 million, compared with just under 2 million
during the comparable period in the expansion phase of
the 1949-58 cycle. In contrast, numbers in the Nation
during the most recent expansion have risen less than 6
million as compared with 11 .2 million in the same
length of time in the previous cycle.
The expansion of cattle inventories in the current
cycle has exhibited divergent trends among the District
states. Arizona, New Mexico, Oklahoma, and Texas
began increasing numbers by 1958, but inventories in
Louisiana did not turn upward until 1959 . The slowness
with which cattlemen in Louisiana are rebuilding herds
may be the result of such factors as losses of cattle due
to hurricanes and flooding, a severe feed shortage during the fall and winter of 1959-60, and the sale of considerable numbers of breeding stock to Texas and other
states following the end of the drought in 1957. Numberwise, the largest and most persistent gains in cattle
and calf inventories during the past 3 years occurred in
Oklahoma and Texas. These states accounted for over
90 percent of the total increase in the District states,
with Texas showing by far the largest expansion.
Cattle inventories in Arizona and New Mexico at the
start of 1961 were above the lows reached in 1957 but
were slightly smaller than at the first of 1960. The
decrease in Arizona reflected the fact that reductions in
both cows and calves were not fully offset by gains in
other classes; in New Mexico, most of the decline was
centered in lower inventories of calves. Severe localized
drought conditions in the summer of 1960 may
have resulted in heavier culling of cattle, particularly
in Arizona.
Both in the Southwest and in the Nation, numbers of
milk cattle have shown a fairly steady decline for several
years. In the District states, milk cattle inventories
decreased 57 percent from the high point in 1944 to the
level of 1,969,000 head at the beginning of this year
and now comprise less than 12 percent of the total, contrasted with 28 percent in the former year.The decline
I
BU S INESS RE VI EW
3: 1961
ALL CATTLE AND CALVES ON FARMS AND RANCHES, 1949-61
Five Southwestern States, Southwest, and United States
(In thou sand s)
January 1
1949 . •.• .•..
1950 ........
1951 .. .... . .
1952 .. . .....
1953 ....... .
1954 ........
1955 ....... .
1956 ........
1957 ...... ..
1958 ... . ... .
1959 ..... . ..
1960 ........
1961 .. .. . . ..
Arizona
818
818
851
928
965
936
983
1,010
947
922
949
1,0 19
1,014
Loui sia na
1, 224
1,285
1,426
1,540
1,833
1,943
1,904
1,923
1,942
1,825
1,697
1,765
1,818
New
Me xico
Oklo homo
Tex a s
1,178
1,178
1,225
1,225
1,237
1,188
1,164
1,222
1,112
1,056
1,130
1,198
1,174
2,48 1
2,580
2,786
3,092
3,247
3,344
3,277
3,146
2,957
2,898
3,217
3,378
3,513
7,957
8,116
8,765
8,853
8,853
8,587
8,501
8,501
7,736
7,736
8,432
9,106
9,379
SO UTHWEST
13,658
13,977
15,053
15,638
16,135
15,998
15,829
15,802
14,694
14,437
15,425
16,466
16,898
Uni ted
States
76,830
77,963
82,083
88,072
94,241
95,679
96,592
95,900
92,860
91,176
93,322
96,236
97,139
SOURCE , United States Departm ent of Agricu l ture.
in milk cattle numbers has permitted some expansion in
beef-type animals, particularly in eastern sections of the
District. The decline in milk cattle inventories reflects
the disappearance of many small-sized family dairy
farms selling cream and butter and the growing number
of larger, more heavily capitalized commercial dairies
with high-producing cows. The trend toward part-time
farming has also encouraged beef raising at the expense
of the more labor-intensive dairying enterprise.
Cyclical Nature of the Cattle Industry
The cyclical nature of cattle numbers and prices is
a major characteristic of the cattle industry. The variations in cattle numbers reflect the cumulative effect of
the decisions of individual cattlemen in response to their
assessment of future profit potentials. The condition of
pastures and ranges and the adequacy of other roughages are key factors in determining the profitability of
producing beef. Other important considerations are the
availability and cost of labor, credit, and other production supplies incidental to cattle enterprises of different
sizes. The cycle in prices of beef cattle reflects the
supplies of cattle being marketed and consumer
demand. The price cycle for beef has an inverse relationship to cattle marketings, and prices ordinarily
begin to decline before the cyclical peak in numbers is
reached.
The trends in cattle numbers and changes in the
prices of beef in the Southwest are broadly similar to
those for the Nation. Regional differences in pasture
conditions and in the types of cattle enterprises may
cause some variations between regions, but the persistent and dominating influences of the national market
for beef result in quite similar cyclical patterns . .
The accompanying chart shows the cycles in numbers of all cattle and calves in the Nation. Two features
stand out in comparing the historical relationships
between vario us cycles in both the Nation and the
Southwest. First, the length of each cycle is shorter,
indicating the shift that has occurre~ in bee~ production patterns and, perhaps, the qUlcker adJustme.nts
beef producers are making in response to ~hangmg
economic relationships. Secondly, each succeSSive cycle
has started from a higher level, reflecting growth in
Population and income; and the peak in numbers has
been progressively higher.
Special factors in the Southwest -largely related to
drought conditions - produced a slightly different
cyclical pattern in cattle inventories during the 1949-58
period from that in the Nation . In both instances, the
Over-all length of the 1949-58 cycle was the shortest of
reCord . The downturn in numbers in the Southwest
Occurred during 1953, but liquidation of herds in the
Nation was not begun until 1955.
As mentioned earlier, prices of cattle follow a general
cyclical pattern inverse to that of marketings, although
the absolute level of beef prices is influenced by the
general level of prices for all commodities. Not only do
the average prices for cattle vary during a cycle, but the
price relationship between different types of cattle also
Changes. In the optimism of the early expansion ?f cattle
numbers, prices of all kinds of cattle - partlcula~ly
replacement stock - rise rather rapidly; and, relative
to prices of slaughter animals, the prices of breed~ng
cattle ordinarily increase rapidly. As the expanSIOn
phase continues and marketings increase, the level of
cattle prices begins to decline, and the relationship
CATTLE INVENTORY CYCLES
UNITED
(Numb, ,,
on form '
STATES
and ron ch", January I)
~,,----I:----t---If------1:----t---t-I-l I00
_
--J--+--T----
70
60
~-~--r--r-_r-1--~~ 50
40 ~-~_,~~~~.-~,-~
1I
13,_~
15-_r.740
1
I
.. O, g lnl
7 YEARS
~N
CYCLE
wllh lo w polnl 01 . nd of pr .... loll. eyer • •
SOURCE: U. S. Olporlmlnl 01 Agrl c ultur ••
*
between breeding animals and slaughter animals starts
to reverse itself.
During most cattle cycles, the composition of ~at
tie inventories generally shows subtle but revealmg
changes. All classes of cattle - not just breeding stock
- tend to increase during the expansion phase as livestock raisers retain cattle longer. Slaughter animals,
such as steers, are held for relatively short periods, but
calves are kept in the herds for a longer time.
Thus, very early in the cyclical upswing, the number
of calves becomes an increasingly larger proportion of
total cattle and calf inventories and rises until the
liquidation phase. The proportion of calves to total
inventories usually is at its lowest near the end of the
declining phase of the cycle. In the District states, calves
comprised about 25 percent of total inventories at the
beginning of 1958, and the proportion advanced to
slightly more than 27 percent by the first of 1961, compared with 25 percent by the third year of expansion in
the 1949-58 cycle.
The proportion of cows in the total inventory rises
more slowly because of the time needed for heifer calves
to reach maturity and have their first calf. Heifers, as a
percentage of total cattle and calf numbers, increased
only fractionally between the beginning of 1958 and the
start of 1961 and comprised a slightly lower proportion
of the total than in the earlier cycle. Cows comprised a
little less than 53 percent of total inventories, or almost
4 percentage points below the early-1958 level and
slightly below that at the same stage of the previous
cycle. However, part of this decline reflects the longrange downtrend in milk cow numbers.
Reductions in numbers of breeding cows are made
with great reluctance during the liquidation phase of
the cattle cycle, since these animals are the basis for the
cattleman's operation. As a result, cow numbers usually
represent a larger proportion of total inventories in the
latter part of a cycle, because slaughter animals and
calves are sold before substantial reductions are made
in cow numbers. Consequently, one of the major factors
in cyclical changes in cattle inventories is the decision
of livestock raisers with respect to the retention or sale
of heifer calves. If an increasingly larger proportion is
retained for additions to the foundation breeding herd,
expansion in numbers will continue. On the other hand,
larger marketings of heifer calves will moderate the
cyclical expansion; or if marketings are accelerated to
a marked degree, a reduction in total inventories could
result.
BUS IN ES S RE V IEW1
3 :1 96 1
Current Stage of Inventory Cycle
Recent trends in cattle prices, changes in the level
and composition of inventories, and the general characteristics of past cycles suggest that the expansion in
cattle and calf numbers may continue for several more
years, barring widespread drought. Basic cow herds do
not appear to be excessive at this time, but immoderate
additions to foundation herds could be unwise, particularly in view of the adjustments that have already
taken place in prices. At the beginning of this year,
there were 53 cattle per 100 persons residing in the
United States, compared with 57 at the same stage of
increasing numbers in the previous cycle. The ratio of
cattle to population had risen to 60 head per 100 per-
sons before liquidation began. An advance in cattle
numbers will be needed to accommodate the growing
population, but the cattle industry has not been overly
successful, in the past, in gearing beef output to the
rather steady increase in consumers.
The present condition of pastures and ranges in the
Southwest suggests that some further additions to herds
may occur but the risk of recurring drought may temper
expansion somewhat. The expected rise in pork production this year, and possibly into 1962, may result
in some depressing effects on beef prices. Moreover,
should the currently reduced level of economic activity
persist over a considerable part of 1961, the demand
for beef is likely to be adversely affected.
PATTERN OF SOUTHWESTERN CONSTRUCTION
The construction industry is a very important factor
in the development and growth of the southwestern
economy, both in direct employment and payrolls generated and in major purchases of many raw materials
and finished products. Indirectly, the industry provides
a means of investment and savings. In a young, growing
area such as the Southwest, the industry serves as a
major element in attracting investment capital from
older capital-surplus areas of the Nation. Since World
War II, the region has accounted for an estimated 7 percent of the Nation's construction expenditures, around
$28 billion of which has been centered in Texas.
contradiction has occurred in response to the contrasting movements among the major segments of the industry, residential and nonresidential building and public
works . Perhaps an explanation of these divergent moves
can be obtained by appraising some of the trends
developing in the industry over the past few years.
The source of economic power and growth in the
Southwest over the decade of the 1950's has been its
industr.ial expansion and diversification. A whole family
of new industries, some raw material-based and others
market-oriented, has developed in tlus region, and their
growth has stimulated the rise of a strong industrial
From 1956 to 1960, the total value of construction
contracts awarded in the Eleventh Federal Reserve District was almost $11 .3 billion, with $ 9.4 billion (or 83
percent) of this amount being located in Texas and the
remaining $1.9 billion placed within the Eleventh District portions of the southwestern states of Arizona,
Louisiana, New Mexico, and Oklahoma. A breakdown
of the District's total awards during this 5-year period
indicates that nearly $4.8 billion (43 percent) was for
residential building, more than $3.5 billion (31 percent) was for nonresidential building, and about $3 .0
billion (26 percent) was for public works and utilities.
It is particularly appropriate to consider recent developments in the construction industry. In other postwar
recessions, this industry has been a major supporting
and countercyclical force; whereas , in the current
period of economic slack, construction has supplied
both upward and downward pressures. This seeming
I BUSI NE SS
14
RE V IEW
3: 196 1
CONSTRUCTION CONTRACTS AWARDED.
BY TYPE AND BY AREA
ELEVENTH FEDERAL RESERVE DISTRI CT
1956 - 1960
ILDING - 4 2. 5 %
tZ2a
TUGS
ml
Ret t 01 El eun lh Ol, ld el
SO URCE: F. W.DodQe
Corpo r a t io n.
VALUE OF CONSTRUCTION CONTRACTS AWARDED, BY MAJOR
construction industry. Rapidly growing petrochemical,
TYPES OF CONSTRUCTION, 1956-60
electronic, machinery, and other diverse manufacturing
Te xas and Eleventh Federal Reserve District
activities have located mainly in or near the large south(In millions of dollars)
Western metropolitan centers. Indicative of this industrial expansion is the fact that, between 1954 and 1958,
Type and area
1956
1957
1958
1959
1960p TOTAL
the total value added by manufacture in the five District Residential building
Texas . .. .. ... .. ..... . . .. .
656
714
907
972
825
4,074
states increased almost 40 percent, or at twice the
El eventh District • ••• .•..••. •
830
1,079
1,154
763
962
4,788
ential building
national rate of growth . Value added in Texas, which Nonresid.... ........... . .. . . 608
Texa s
516
603
572
704
3,003
El eventh Di strict • • . . .....
606
715
679
816
3,529
accounted for over two-thirds of the five-state volume, Public works and utilities • •• 713
Texas .. . ..... .... . ..... . .
532
492
492
350
461
2,3 27
increased at an even faster rate, 44 percent. As capital
El eventh Di strict • • ..••• . ••••
592
506
670
611
2,958
579
Spending plans fluctuated, industrial construction a~so TOTALa s .. . ... . .. .. . ..... .. .
Tex
2,021
1,61 4
1,691
2,042
2,036
9,404
El eventh District • •..•••••• • • 1,982
shifted. The level of spending for new plant and eqUIp2,425
2,389
11,275
2,015
2,464
ment has been relatively high for many years, and
p Pre liminary.
SOURCE , F. W. Dods. Corporation .
industrial construction in the Southwest achieved a new
record in 1960.
ing enlarged its share of the construction total in the
The remarkable rate of industrial growth and diver- District to a new record of 48 percent in 1959. Howsification has supported a sharply higher r~te o~ nat~ral ever, the inducement to expansion was too strong, and
Population advance and a rising rate of m-mIgratlOn. overbuilding occurred in some of the major metroThe population of the Southwest rose nearly 3.3 milli~n politan areas. In 1960 the residential sector's share of
from 1950 to 1960, with almost one-quarter of a mIl- the District's total construction declined to 40 percent.
lion persons in-migrating from other states. The popuThe problems of southwestern home building in
lation growth was accompanied by a marked shift in 1960 also included the effects of a higher mortgage rate
location from rural areas to the major metropolitan and reduced availability of mortgage funds in the early
areas of the Southwest. These new southwesterners, part of the year, a rising vacancy rate for apartments
both natives and in-migrants, formed the core of an and rental units, a slower rate of growth in personal
eXpanding market for all types of consumer goods and income, increasing unemployment, and the lack of
services, which, in turn, brought a marked increase stimulus from any appreciable change in down-payment
in commercial construction. The recognition that the terms or mortgage loan maturity schedules. After many
SOuthwest was developing into a primary market years of rapid expansion, perhaps the home-building
encouraged the growth of new warehousing, branch sector of the construction industry was overstaffed, and
Office, and other service functions. The reinforcing its excesses of other recent years required a period of
.
character of this growth can be seen in the attractlOn gestation. For whatever reason, the residential housing
of additional thousands of workers to handle such market failed to provide the needed stimulus, and home
eXpanded facilities. In 1960, District nonresidential building in the region declined almost 17 percent from
bUilding, which includes the important components of its 1959 record.
commercial and industrial building, reached a record
The home-building market shifted rapidly from
of $816 million, after averaging $706 million annually
project-type to custom-type construction and then to
since 1956.
apartment building. The trend toward large suburban
Perhaps more importantly, though, the po~ula tion developments slowed in the past year, and a countergains have stimulated the demand for new housmg and trend of apartment construction near the center of
lnunicipal service construction. With wartime demands major cities was especially noticeable. Many one- or
largely satisfied in the first half of the 1950 decade, ~he two-story apartment buildings with 20 to 100 units have
residential construction industry had to meet changmg been constructed near major thoroughfares at short
consumer preferences and the exceptionally strong
distances from the downtown areas. In addition, some
lllarket demand stemming from population shifts in the
luxurious multistory apartments have been built.
Past 5 years. As their children grew up, many veterans
Accompanying these developments has been a marked
of World War II and the Korean War began to search
growth in remodeling and repair of existing houses.
for larger homes, and the emphasis in home building
The population advance of the Southwest, concenshifted away from the two-bedroom h~me t.o thr~e-,
fo ur - and five-bedroom houses. Thus, reSIdentIal build- trating in the major metropolitan areas and stimulating
BUSINESS REVIEWI
3;:'1961
the large suburban developments, has brought a rising
demand for municipal services. New streets, additional
water and sewerage facilities, and expanded utilities
have featured this suburban growth. With characteristic
lag, the construction of many such facilities has only
recently been accomplished; thus, though suburban
growth has slowed, expenditures of state and local
governments have risen.
In the heavy engineering sector, one would expect
fairly steady growth in outlays for electric and gas
utilities and perhaps an anticyc1ical characteristic in
the construction of public projects, highways, water
resource development projects, and military installations. But, such is not necessarily the case. Heavy engineering projects, which accounted for one-fourth of the
District's total construction awards in 1956, peaked at
29 percent in 1957 and averaged 26 percent of total
awards over the 1956-60 period. However, during this
5-year period, the yearly value of heavy engineering
awards increased one-fifth from the 1956 level of
$506 million.
A cumulative comparison shows that the greatest
growth in heavy engineering awards in the District took
place between 1958 and 1960; and, to an increasing
extent, this growth has centered in Texas. Many large
contracts have been awarded in Texas for pipelines to
develop natural gas reserves, for additional electrical
generating and distributive capacity to handle the rapid
and continuing growth of the residential and commercial power markets, and for a vast network of expressways and public roads. In 1956, Texas had 69 percent
of the District's total heavy engineering construction
value, but by 1959 this share had increased to a record
83 percent.
Educational facilities have also been a major high
light of the construction industry in the past few years.
The increasing number of children reaching school age
has so taxed existing school facilities that a major program of construction, starting with the elementary
schools and now moving to secondary schools and
public institutions for higher education has been
implemented.
Suburban shopping center construction also has been
stimulated by the population growth; and in many
major metropolitan areas, such construction reached a
new peak in the past 5 years. However, the trend slowed
in 1960, in keeping with the changing emphasis upon
apartment building.
I
BUSINESS REVIEW
3:1961
In fact, since 1956, the construction industry of the
Southwest has concentrated upon catching up to the
housing and commercial and government facilities
needed to meet the economic and population advances
in the earlier postwar years. The year 1960 gave evidence that at least a substantial part of this process has
been accomplished in housing. Perhaps the principal
areas for further growth will be highways, water
resource developments, and urban renewal projects.
Federal outlays for public works have been substantial in Texas and the District. From July 1956 through
December 1959, nearly 700 miles of the Federal interstate and defense highway system were built in Texas
at a cost of about $186 million , of which the Federal
Government furnished $159 million. Texas received
6.3 percent of total Federal funds disbursed in the
Nation for this purpose and built 11. 7 percent of the
national interstate and defense highway mileage. This
greater efficiency in using highway funds reflects, in
part, the fact that the Southwest already has space in
which to expand and does not need to destroy as many
structures to build new highways as other more fully
developed areas of the Nation do.
Under the so-called primary, secondary, and urban
road program, about 6,558 miles of highways have
been built in Texas since July 1, 1956, at a cost of over
$357 million, one-half of which was paid by the Federal Government. Texas received 6.7 percent of the
funds disbursed under this program and built 7.7 percent of the national mileage. The continuous problems
of enlarging, updating, and renovating streets, public
buildings, and educational and other institutional structures are expected to command an increasing share of
the construction industry's attention in the foreseeable
future.
The 1960 construction pattern in the Southwest continued the trends of 1958 and 1959, insofar as public
works and commercial and industrial construction were
concerned. However, in home building, the 1960 picture of decline may have been the culmination of a long
process of adjustment, or it may have been just a temporary deviation from the trends of other recent
postwar years. The internal adjustments needed to
accommodate these changes in the construction pattern
are ones which have proved to be painful and, to some
extent, damaging to the industry. On the other hand,
the stronger, more flexible concerns which have survived form the core of the efficient construction industry
the Southwest needs for future growth.
BUSINESS
REVIEW
BUSINESS, AGRICULTURAL, AND FINANCIAL CONDITIONS
Daily average crude oil production in the Eleventh District
increased slightly during January, and output in early February was at the month-earlier
level. Crude oil runs to refinery stills advanced more
than seasonally in January. The Texas crude oil allowable schedule has been extended to 10 producing
days f.or March. Mixed trends were shown in January
drilling activity.
District agricultural conditions improved somewhat
in February. Cotton, corn, and grain sorghum planting is under way in the Lower Valley, and field work
is active in south Texas commercial vegetable areas.
Southwestern pastures and ranges show the effect of
severe winter weather. Numbers of cattle, sheep, and
turkeys in the District states on January 1 Were higher
than a year ago, but inventories of hogs and chickens
Were lower.
In the 4 weeks ended February 15, the District
Weekly reporting member banks showed advances in
loans, investments, and time deposits but a reduction
in demand deposits. Reserve positions of the District's
Department store sales in the
Eleventh Federal Reserve District declined more than seasonally during January and were 3
percent below January 1960.
'Year-to-year sales losses were not confined to any particular commodity group but were widely distributed
throughout the major merchandise departmentsWearing apparel, as well as furniture and household
appliances. Sales in early February, on a daily average
baSis, were slightly above the comparable period a
year ago.
The seasonally adjusted index of District department
store sales for January 1961 was 167 percent of the
1947-49 average, compared with 171 for both January and December 1960, when sales were at record
levels for each of these months. Department store inven-
member banks improved further between January 4
and February 1 and remained comfortable.
District department store sales in January declined
more than seasonally from December 1960 and were
3 percent under January last year. Department store
inventories were reduced during January and at the
end of the month were substantially under a year
ago. New car registrations in the four major Texas
markets in January declined 13 percent from December and 18 percent from a year earlier.
Nonagricultural employment in the five southwestern states declined during January. In Texas, unemployment increased to 222,800, or 6.3 percent of
the State's total labor force. The seasonally adjusted
Texas industrial production index rose in January
because of advances in manufacturing output; however, mining activity decreased.
Construction contracts awarded in the five southwestern states during December 1960 advanced over
the previous month and a year earlier, reflecting significant increases in awards for nonresidential building and public works and utilities construction.
tories were adjusted downward during January and on
January 31, the end of the fiscal year for most department stores, were substantially under a year ago.
New car registrations in the four major Texas markets in January decreased 13 percent from the precedDEPARTMENT STORE SALES
(Preliminary percentage chango i n retail va lue)
January 1961 fram
Area
Total El e venth Di strict •. •• ... .. ••...•..
Corpus Christi •••••••...••• •. ..•.... •.
Dalla •.•.......... . ..... . .. . .. .. . ...
EI Pa.o •••••.•••••••••••••• • ••••••••
Fort Worth .. . ........... . ..... .. .. . .
Houston ••••• •• •.•• •••••••••••••••••
December
1960
-57
-63
-57
-60
-59
-54
San Antonio •• •••••••••••••••••• • ••••
-52
Shreveport, La ..•...•...•.••••.. •. . ••
- 56
- 59
-59
Waco ••..... ...••... . • . .•..•.....••
Other cities ..• •.. .....• • •. ••.. ..• •••
Januar y
1960
-3
-2
-6
-11
-5
1
1
-4
1
-1
BUSINESS REVIEW
3: 1961
I
71
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
LIVESTOCK ON FARMS AND RANCHES, JANUARY 1
Eleventh Federal Reserve District
(In thousands)
(1947 -49
=
100)
Five southw estern
states!
Te xa s
SALES (Doily overag e)
STOCKS (End of monlh)
Dale
Unadiusted
adiusted
Unadiusted
1960, January _ • • • • •
Nove mber . ... •
December.....
1961, January.......
135
190
293
132p
171
163
171
167p
163r
211
169
158p
Seasonally
adiusted
186r
192
182
179p
Cottie .. ... . . . __
Milk cottle . •. .
Beef cottl e ••..
Sheep .. ........
Slack she ep •.•
Feed ers . .... .
Hog s ...... . .. . .
Chickens' . .. . . ..
r -Revised.
p Pre liminary.
Turke ys • •• . • .. • •
ing month and 18 percent from January 1960. Each of
the four markets also showed downward sales trends.
Compared with a year ago, January new car registrations were 14 percent lower in Dallas and 11 percent
less in Houston. San Antonio and Fort Worth reflected
declines of 29 percent and 33 percent, respectively.
Agricultural conditions in the
Eleventlh District improved
somewhat during February, although many fields in the eastern half of the District have been
too wet to graze or plow for the past 3 months. Planting of cotton, corn, and sorghums has gained momentum in the Lower Rio Grande Valley of Texas. Most
wheat in the Plains is in good condition, and oat prospects are favorable throughout most of the District. In
the Lower Valley and Coastal Bend, peaches are
blooming and pecan buds are swelling.
Field work has been active in south Texas commercial vegetable areas. Frost in the Lower Valley the in-st
week in February resulted in light losses of tender vegetables. Cabbage, carrots, and lettuce are being shipped
from the valley; and a fairly good volume of beets, broccoli, cauliflower, and leafy green vegetables is available.
Early spring onions are in good condition in south
Texas. Watermelon planting is under way in the
Falfurrias area, and land preparation for melons and
spring vegetables is active in south-central and east
Texas. Tomatoes are coming up in hotbeds in southcentral counties, and seeding of hotbeds is progressing
in east Texas.
Pastures and ranges in many sections of the District
show the effect of prolonged periods of severe winter
weather. Cold, wet conditions have prevented the usual
growth of winter grasses, weeds, and legumes. Small
grains have provided very little grazing in east Texas,
coastal sections, and the Blacklands. Compared with a
year earlier, feed conditions in the range states of the
I BUSINESS
I8
1961
Speci es
Se asonally
REVIEW
3: 1961
9,379
956
8.423
6.159
5.968
191
1.037
15.500
415
United Sioies
1960
1961
1960
1961
1960
9,106
1.004
B,102
5.93B
5,73B
200
1.1 15
17.008
391
16,898
1.969
14.929
8,246
7.876
370
1,779
24,B09
561
16,466
2.037
14.429
7.978
7.634
344
2.0 18
27. 101
522
97.139
29.936
67.203
32.932
2B.677
4.255
55.305
357.910
6.840
96.236
30.181
66.055
33.170
28.B49
4.321
59.026
369,484
5.633
1
Ari zona, Louis iana, Ne w Me xico, Oklahoma , and Texas.
2
Do es not include comm e rcial broil e rs.
SOURCE , United States Departme nt of Agriculture .
District as of February 1 were somewhat improved in
Oklahoma, unchanged in New Mexico, and less favorable in Arizona and Texas.
Supplemental feeding of livestock reached a seasonal
peak in February, as ranchers attempted to halt further
weight loss of the animals . Cattle in the eastern half of
the District continue to be maintained primarily on
roughage and protein supplement. In some areas of
east Texas, roughage feed supplies are becoming scarce.
Goat shearing has increased in the Edwards Plateau.
The number of all cattle and calves on farms and
ranches in the District states as of January 1, 1961 ,
advanced to an all-time high of 16,898,000 head ,
reflecting a 3-percent gain over the revised 1960 figure.
An increase in the number of beef cattle more than offset a decline in milk cattle inventories. The number of
sheep in the District was up 3 percent over the yearearlier level, but hog numbers were down 12 percent.
In the Nation, cattle numbers reached a record 97,139,000 at the beginning of 1961. This is the third consecutive year that the national cattle inventory has shown
an over-all increase.
.. .
In the 4 weeks ended February
15, weekly reporting member
- "Q
.
~.
,
{I> ,J.3 FI NANC
~} banks in the District showed ad;
;U
.{ h
I
\ }r ~ f~-' '.
-r
-Ai
vances in loans, investments, and
......." .""~" .....,... ." .,....",,,.,..,.....,....
time deposits but a reduction in
demand deposits. Cash accounts decreased, and total
assets expanded.
- ---"""~
""":."""" ~ """" ".. •.•...•...
""."."
t J;
• {. \ i J(. .
~\
\'
Gross loans (excluding interbank loans) rose $27 .6
million during the 4 weeks, as increases of $45.8 million in consumer-type loans and $6.2 million in loans
for purchasing or carrying securities were only partially
offset by declines of $14.0 million in commercial and
industrial loans and $9.1 million in loans to nonbank
financial institutions. In the comparable period a year
ago, gross loans declined $33.4 million, primarily as
a result of a $23.1 million decrease in commercial and
industrial loans.
Total investments of the District weekly reporting
member banks grew $52.7 million between January 18
and February 15. Holdings of Government securities
advanced $29.5 million, as reductions of $17 .7 million
in Treasury bills and $13.9 million in Treasury certificates were more than offset by increases of $17.5 million iN Treasury notes and Government bonds due
within 1 year and $44.7 million in Treasury notes and
Government bonds due after 1 but within 5 years. NonGovernment security holdings rose $23 .2 million. In
the corresponding period of 1960, total investments
declined $56.5 million, with a $6.6 million growth in
holdings of non-Government securities being more than
offset by a $63 .1 million reduction in holdings of Government securities.
In the 4 weeks ended February 15, the weekly reporting member banks recorded a $20.3 million expansion
in total deposits; although demand deposits declined,
time deposits advanced substantially. The $60.1 million
reduction in demand deposits reflected decreases of
$28.5 million in deposits of individuals, partnerships,
and corporations and $77.6 million in deposits of
domestic banks. However, demand deposits of the
United States Government increased $39.4 million.
Time deposits continued the growth begun over 7
months ago by advancing $80.4 million during the
Eleventh Fe dera l Reserve District
(Ave rages of da ll y flg ures . In thousands of do lla rs )'
Ite m
RESERVE CIT Y BANKS
Tota l reserves hel d • •• , • ..•••• •
With Fe d eral Reserve Bank .• ..
Ca sh a ll owe d a s rese rves ••• ••
Required reserves ••• •• •• • • •• ••
. ~x.cess ~ eserv es •• • •.. .•••• •• .•
F~:~o;::sne~~'e~ :: :::::::::::::::
CO UNTRY BANKS
Tota l roserves he ld •• • , ••• • ••••
W.lth Federa l Reserve Bank .. . .
Ca sh allow e d a s rese rves .•• ••
Re quire d reserves • ••..••••.. . •
Ex.cess reserves ••• •• • . •••• .. • •
~orrowlng s ••••• . ••• •••• ••••••
ree reserv es • ..• • ••••••.•• • • •
All MEM8ER BANKS
Tota l reserves held •• • •. .• • . • .•
With Fe de ral Res e rve Bank.. ..
R Cash allowe d as reserves • • • . .
Eequlre d reserves ••• ••.. .• ••• .
B)teess rese rves •• • • .••• . • • ••..
Forrowings • . •.• ••. • ••••• • ••••
rOe reserves •. . • •••••• • •••• ••
Eleventh Fed e ral Reserve District
(In thousands of dolla rs )
Feb. 15,
1961
Jan. 18.
1961
Feb. 17,
1960
1,537,67 6
32,945
1,551,631
32.092
1,476,337
32,221
2B,878
25.736
28,247
21.402
383
19,513
9,127
194,632
8,456
194,108
8,524
193,582
85,9B9
127,759
76
65,262
217,103
787,947
98,335
124,557
10 1
47,937
219,238
742,147
134. 181
109,318
655
34,277
205,116
725,946
Gross loans •• . ••••••... • • ••••..• •. ...••
l ess reserves and unallocat e d charg e·offs ••
3.1 13,130
57,220
3,068,251
57,076
2,940,053
53,722
Ite m
ASSETS
Commercial and industria l loans • •. •.. ••••••..
Agricultura l loans •.• , . . . •• •. . ..•••... .•••. .
Loans to broke rs and de al ers for purchasing
o r carrying:
U. S. Government securi ties • •••..•.••...•• •
Othe r securities • ... .... . ••••. .• •• . .•••..
Othe r loans for purcha sing or ca rrying:
U. S. Gov ern ment secu riti es ••••..••••....••
Othe r securities • ••••... . •• .. . . ••• . .. . • ••
Loans to nonbank flnancial institutions:
Sal es flnanc e, p ersonal financ e, e tc .. ..... . . .
Saving s banks, mtg e. cos., ins. cos., etc . ••.•..
loans to fore ign banks ••....... .. . . .• •. ••..
loans to d omestic commercial banks ••••.••. . ..
Real·estate loans .• ••. .... •• ... " ..•.•...••
All other loans . • • •. •. •• •• •• ••••• .. .. .•..••
Ne t loans • ••. ••• •• •••••• • •••••••.••••••
3.055,910
3,0 11,175
2,886,331
Tr e a sury bills .. • . .• ••• . •• . •••••... • ••• . . • •
Tre a sury certificates of ind e bte dn ess •.•.••••••
Tre a sury notes and U. S. Governm ent bonds,
iw~~~ing guaranteed obligations, maturing :
I hln 1 ye ar ••• .. •••••..•••.• • . . •• • •••
After 1 but within 5 ye ars .................
Aft er 5 ye ars ••.. . •• .... • •.•. • , •..•. .. .•
Othe r sec urities •• ••••....• •.. . • ••• . •• • ..• .
112.923
34,427
130,629
48,295
36,422
22,524
164,137
778,113
36B,304
408,895
146,617
733,436
369,430
385,686
71 ,55 2
760,379
3 16.211
370,230
Total investm ents • ••.• .••• • ..• • ••.••••. , •
1,866.799
1,8 14,093
1,577,318
Ca sh ite ms in process of collection •••....••.• •
Ba lanc es with banks in the Unit e d States •.. • • ..
Ba lanc es with bonks in for eign countries • ••.• , •
Currency and coin .••.....•..••.•..•.. . •.• •
Reserves with Fo de ral Rese rv e Bank • •• •• , .•• . .
Othe r a sse ts ••• •.....•.•.•• • • •.• ..••... • ..
541,239
49B,398
2,06B
53,067
537,779
210.488
532,810
509,017
2,157
54,961
58B,370
223,077
496,655
456,056
2,270
48,707
555.985
217,931
4 wee ks ended
Feb. 1, 1961
4 wee ks e nd ed
Ja n. 4, 1961
4 weeks end ed
Fe b. 3. 1960
58 1,528
540,92B
40,600
567,197
14,33 1
304
14,027
588,396
547,007
41,389
576,412
1I ,9B4
1,098
10,B86
54B,O l 5
544,963
3,052
542,260
5,755
73,5 19
-67.764
528,119
424,294
103.825
445,446
82,673
434
82,239
5 17,358
415,593
10 1,765
439,738
77,620
1,189
76,431
47 1,775
465, 125
6,650
422,llB
49,657
10,152
39,505
1,109,647
965,222
144,425
1,0 12,643
97,004
738
96,266
1,105,754
962,600
143,154
1,0 16, 150
89,604
2,287
87,3 17
1,0 19,790
1,010,088
9,702
964,378
55,412
83,67 1
-28,259
.. ... ... .... .... .. .....
6,765.748
6,735,660
6,24 1,253
LIABILITIES AND CAPITAL ACCO UNTS
De mand de posits
Individual s, partnerships, and corporations ••••
Unite d States G ove rnment ••••..•••..•..••
States and political subd ivisions • ... .. . ••.••
Banks in th e Unite d States ••• • .••. . .• .. ••••
Banks in fore ign countries •.• . .•.•...••..•.
Ce rtifi e d and officers' che cks, e tc .•• • • ••• • ..
2,917,67 1
103,714
227,870
1,079,2 43
14.848
55,8 13
2,946,137
64.352
227,934
1,156.8 17
14,562
49,468
2,838.777
93,863
216,936
892,228
14,029
50, 131
Totol d emand de posits • • •• . ••• .•• . .• • • •
RESERVE POSITIONS OF MEMBER BANKS
=
CONDITION STAT ISTICS OF WEEKLY REPORTING
MEMBER BANKS IN LEADING CITIES
4,399. 159
4,459,270
4,105,964
Tim e d e posits
Ind ividuals, partnership s, and corporations • ••.
Unit ed States Governm ent ••• • •••• ••.• • • • •
Postal saving s •.• •.. •• • .• • ••.• ••• ••••• • •
States and poli tica l subdivi sions . ••..•• • . • • •
Banks in th e U. S. and fore ign countries • • ••••
1,306,619
14,513
394
270,240
10,288
1,235,707
12,513
394
262,738
10,254
1,014.873
11,255
394
239,110
6,663
TOTAL ASSETS
Total tim e d e posi ts ••• • ..••••••••..••••
---~=-----------------------------------------~--~~
NOTE. _ Re g ulations pe rmitting me mb e r banks to co unt par t of their vault cash in
~eting rese rve re quire me nts becam e e ffe ctive in De cember 1959; e ffe ctive Nove mb e r
, 1960, all vault cash can be counted In meeting rese rve requirements.
1,602.054
1,521.606
1,272,295
Total d e posits ..... .... . ............
Bills po yab le, rediscounts, e tc .••••• • . .• ••••••
All other liabilities •. . ••••...•••••.• •• •• • •••
Capita l accounts • . •.• ••• .•.. ••• . • .• • • ••• • •
6,00 1,213
71.000
118,808
574,727
5,980,B76
58.025
124,643
572,116
5,378,259
184,800
132,552
545,642
6,765,748
6,735,660.
6,241,253
TOTAL LIAB ILITIES AND CAPITAL ACCOUNTS.
=
4-week period. The growth in time deposits was largely
accounted for by a $70.9 million expansion in deposits
of individuals, partnerships, and corporations.
Total reserves of the District member banks
increased in the 4 weeks ended February 1. Excess
reserves advanced at both reserve city banks and country banks, while borrowings were reduced, Thus, an
already comfortable reserve position was improved
BU S IN ESS REVIEW
3 :1961
I
9 1
CONDITION OF THE FEDERAL RESERVE BANK OF DA LLAS
(I n thousands of dollars)
Feb. 15,
1961
Item
Totol gold certifica te reserves •••••••••••.•••
Discounts for me mber banks ••.•..... ...• ••.
Other discounts and advances •.•.......••..
U. S. Gov e rnment sec urities ••• .. . ..... ..••. .
Total e arning assets •••••.. • •........••...•
Member bank rese rve deposits .•.• .•..... . ••
Fe d eral Reserve notes In actual circulation •••••
650,222
300
522
1,072,986
1,073,808
911,210
811,529
Jan. 18,
1961
721,174
100
522
1,084,537
1,085,159
971,441
822,631
Feb. 17,
1960
683,576
85,526
o
1,009,809
1,095,335
962,914
789,425
even further. In the comparable period a year ago,
reserve city banks had net borrowed reserves of $67.8
million; country banks showed free reserves of $39,5
million, which is less than half the average for the 4
weeks ended February 1, 1961.
Between January 18 and February 15, total earning
assets of the Federal Reserve Bank of Dallas declined
$11.4 million. Holdings of United States Government
securities were reduced $11.6 million; on the other
hand, discounts for member banks increased $200,000.
Federal Reserve notes in circulation decreased $11.1
million during the period to a level $22.1 million above
a year earlier. Gold certificate reserves declined $71 .0
million in the 4 weeks ended February 15 and were
$33.4 million below a year ago.
The Texas crude oil allowable
schedule for March has been increased to 10 producing days ,
primarily because of reduced
crude oil stocks. Although the
February allowable schedules in the other District
states have been retained for March, the Texas increase
should result in a rise in District crude oil output during
the month. Normally, a production decline of 3 percent is expected between February and March.
Daily average crude oil production in the District
has increased slightly each month since last October
and indications are that output during early Februar;
approximated the January level. A similar pattern has
also been established in the Nation.
Nevertheless, District drilling activity was somewhat
mixed during January. The average number of rotary
rigs employed in the D~strict declined significantly;
however, total footage dnlled advanced, and the total
number of wells cOl~pleted decreased only moderately.
These trends are eVIdence of the more intensive utilization of drilling equipment.
Crude oil imports advanced significantly in January;
however, demand for crude oil was heavy during the
I BUSINESS
110
REVIEW
3: 1961
month, resulting in reduced inventories in the Nation.
National stocks had increased slightly during the previous 2 months.
January crude oil runs to District and national refinery stills, advancing more than seasonally, rose about 4
percent, and refinery operations remained at this higher
level in early February. Imports of refined prodtlcts also
increased significantly during January. Demand for the
four major petroleum products, however, was virtuallY
unchanged during the month, and a less than anticipated decline in product stocks resulted.
Seasonal advances occurred in the consumption of
distillate fuel oil during January, and gasoline demand
declined seasonally. A greater than anticipated rise in
residual fuel oil consumption compensated for a minor
increase in kerosene demand. Refined product demand
strengthened contraseasonally in early February.
Weather conditions at midmonth were moderate; yet,
heating oil supplies were somewhat limited, and prices
remained firm. On the other hand, gasoline prices, at
the wholesale and retail levels, were shaded in certain
parts of the Nation.
Nonfarm employment declined
in all sectors during January in
the District states but was moderately above a year ago because
of growth in finance, service, and
government employment. The January decline waS
mainly the result of seasonal reductions in trade and
service employment, which accounted for three-fourthS
of the total decrease in nonfarm employment and contributed significantly to the rise in unemployment.
NONAGRIC ULTURAL EMPLOYMENT
Five So uthwestern Slates 1
.;::::::
Percent chang e
Jan. 196 1 from
Number of persons
January
Type of employment
Decemb er
January
Dec.
1961 e
1960
1960r
1960
Jon.
1960
4,380,600
763,400
3,617,200
241,800
283,000
4,478,700
771,800
3,706.900
242,300
286,900
4,359,600
776,700
3,582,900
247,500
283,700
-2.2
-1.1
-2.4
-.2
-1.4
0.5
_1.7
1.0
_2.3
_.3
397,300
1,08 1,300
205,500
549,800
858,500
403,800
1,146,100
205,600
558,900
863,300
405,000
1,081,800
197,500
539,500
827,900
- 1.6
-5.7
- .1
-1.6
- .6
_1.9
_.1
4.1
1.9
3.7
Total nonagricultural
wage and salary workers ••
Manufacturing • • • • ..•••• •
Nonmanufocturing • •.•• .. •
Mining ••••••.••••• •••
Construction •..••• • •.••
Transportation and
public utilities • • ••••••
Trade . .. . . ...•...... .
Finance •••••••••• ••• . •
Service ... . ... • . •.. . ..
Governm ent •• •.• •.• ••.
1 Arizona, louis iana, New Me Xico, Oklahoma, and Texos .
e -
Estimated .
r-
Rev ise d.
SOURCES , State e mployment agencies.
Fede ra l Reserve Bank of Dallas.
IN DU STR IAL PRODUCT ION
ISea sonally adjusted Indexes, 1947·49
=
= 100)
January
__ Area and type of index
December
November
January
1961p
1960
1960
1960
173
215
247
200
132
171
210
237
197
133
172
215
251
198
131
173
213
249
197
133
155
152
154
155
128
294
157
154
156
157
128
294
159
157
160
158
128
293
168
168
180r
159
128
280
TEXAS
!'fotal industria l production .•.. ....
bota l manufactures • •• • ..... . . . .
urable ma nufactures . . •........
%~n.durQble manufactures .. . .... .
1"lng • • ' " ••• • ••••••••••• • ••
the production of nondurables. Strength in durable
goods manufacturing was ' shown mainly in primary
metals, electrical machinery, and stone, clay, and glass
industries. In the nondurable goods sector, there was
increased production of food, textiles, and petroleum
and coal products. Mining activity declined slightly
from the month-earlier and year-earlier levels.
UN ITE D STATES
+ota l industria l production •.•. ....
D~~~lbleQ~u:~~;~~~~~~~:: .' ::::::::
~~ndurab l e manufactures .. .•.. ..
Ut'l~it~~s·.::::::::::::::: : ::::: :
P -
VA LU E OF CONSTRUCT IO N CO NTRA CTS AWARDE D
(In thousa nds of do llars )
Ja nuary-December
Pre liminary.
r_ Revised.
SOU RCES : 80ard of Governors of the Federa l Reserve System.
Federal Reserve 8ank of Dallas.
Construction employment in the five District states
combined decreased during January; but in Texas, such
employment moved strongly against the seasonal pattern, reflecting increases in contract lettings. Manufacturing employment showed only a slight decline in the
five states, especially in Texas. Thus, the fairly sustained
level of manufacturing employment and the reversal in
the trend of Texas construction employment were
favorable factors in recent employment developments.
Insured and total unemployment in Texas rose markedly during January to reach 222,800, which is 6.3
percent of the State's total labor force. In the Nation,
the January rate of unemployment amounted to 6.6
percent.
The index of Texas industrial production advanced
2 points during January to a seasonally adjusted level
of 173. Total manufactures increased as a result of a
Sharp gain in the output of durables and a smaller rise in
Are a and type
FIVE SOUTHWESTERN
STATES' .•.. . ... __
Re sid ential. . .... . .
All othe r ____ .•. . . •
UN ITED STATES ____ __
Residential. . ... ...
All other __ .. .. .. . .
December
1960p
289,537
105,651
183,886
2,7 17,70 1
877,733
1,839,968
Novemb e r
1960
December
1959
222,940
102,925
120,015
2,843,444
1,232,134
1,61 1,3 10
252,1 45
113,537
138,608
2,224,060
993, 185
1,230,875
1960p
3,762,959
1,523,265
2,239,694
36,317,629
15,105,423
21,2 12,206
1959
3,882,290
1,827,549
2,054,741
36,268,544
17, 149,677
19,1 18,867
Arizona, louisiana, New Mexico, Oklahoma, and Texas.
p Pre liminary.
SO URCE, F. W. Dodge Corporation .
1
The total value of construction contracts awarded
in the five southwestern states rose sharply in December 1960 to $290 million. Residential awards advanced
slightly but remained below a year ago. "All other"
awards, however, increased substantially over November and were considerably above the year-earlier figure.
On balance, construction contracts awarded in the five
states during 1960 totaled almost $3.8 billion, which is
slightly below 1959. The residential sector was 17 percent below the record 1959 level and accounted for all
of the decline in the total value of contract awards. On
the other hand, sharp rises in industrial and commercial
building awards during 1960 resulted in a 9-percent
gain in "all other" awards.
EL EVENTH FEDERAL RESERVE DISTRICT
~ 00 11 01 Heod Off ice Territory
mDIl HOU l ton
Branch Ter ritory
1
::::;:::;:1San Antonio Branch Territory
~ £ 1 POlO Branch Te rrllory
BUSINESS REVI EW
3 : 1961
11
I
I
GROSS DEMAND AND TIME DEPOSITS Of MEMBER BANKS
BANK DEBITS, END-Of-MONTH DEPOSITS
AND ANNUAL RA11f OF TURNOVER Of DEPOSITS
Eleventh Fede ral Reserve Di strict
(Dollar amounts in thou sand s )
Debits to d emand
d e posit accounts l
(Avero ges of daily figures. In millions of dollars)
Annua l rate of t urn over
Jan.
1961
Dec.
1960
$ 138,202
22.6
2 1.6
19.1
50,547
189,847
20.0
22.4
17.6
21.5
18.4
20.4
22
36,158
17.6
16.4
1
10
7
- 1
0
1
-8
-5
0
-2
- 7
-5
-3
-5
8
1
-2
9
2
0
7
12
-4
7
- 5
-5
6
4
6
2
8
- 6
0
-5
9
4
- 1
4
2
- 1
66,172
120,569
148,6 16
104,570
108,2 10
20, 181
1,169,088
174,794
373,380
61,436
1,306,668
21,668
125, 182
45,052
47,162
382,197
17,637
59,782
70,704
98,772
19.2
23.9
16.9
19.3
21.6
10.8
31.3
25.2
25.8
18.4
24 .6
15.8
28.3
17.4
14.6
19.7
15.6
17 .9
18.8
14.8
19.3
22.0
16.1
19.2
2 1.7
10.8
34.3
26.8
25.4
19.2
26.0
16.7
30.2
18.4
13.4
19.7
16.1
16.7
18.5
15.0
18 .5
21.8
17.8
18 .1
2 1.4
11.3
3'1.0
24.5
25 .7
16.8
23.3
16.2
27.0
17.6
13.6
19.6
16.7
16.7
19.0
13.4
-4
6
24 .6
25.7
23.8
89,159
367,447
11
6
5
7
49,679
14
106,640
241,697
218,369
169,535
195,01 5
18,278
3,268,724
363,789
842,151
92,927
2,749,717
28,801
296,792
63,056
57,479
627,966
22,649
90,295
112,633
125,718
Total-24 cities • • . .. . •• $ 10,458,670
Jan. 31,
1961
Jan.
1960
1961
Jan.
1960
AR IZONA
Tucson ••. •.•.•.• . • •• $
260,154
LOUISIANA
Monroe •••• •••••••••
Shreveport • •.•• ••• ••
NEW MEXI CO
Roswell .• . .••• ••••••
TEXAS
Abilene ••••• ••. . .•..
Amarillo ...•..•• .. • •
Austin ..••..••...••.
Bea umont •.•• ••• ••••
Corpus Ch risti .•••••.•
Corsica na •• .••. .• •..
Dalla s ••••••.•.• ••..
EI Paso • • •...•••....
Fort Worth •••••....•
Galveston ••.•• •...••
Houston • • •• , • ••••••
la re do •.....•. . ....
Lubbock ••••••••.•.•
Port Art hur ••••.•••.•
San An ge lo ••• " .• .•
San Antonio • • •• • ••• •
Texarkano 2 •• •••• • ••
Tyler ... . . . . . . . . ....
Waco ••••••••••••• •
W ichita Falls •• • . ••••
Total
1959: Janua ry •••
1960: Janua ry ..•
September.
October •..
November .•
Dece mb er.•
1961 : January •• •
8,106
8,084
7,577
7,699
7,879
8,044
8,135
3,952
3,912
3,8 14
3,875
3,933
4,030
4,032
Countr y
banks
Total
Rese rve
city banks
Country
banks
4,1 54
4, 172
3,763
3,824
3,946
4,014
4, 103
Date
Rese rve
cit y banks
2,090
2,111
2,317
2,368
2,426
2,482
2,564
1,106
1,08 1
1,170
1,19 8
1,229
1,263
1,308
98 4
1,030
1,147
1,1 70
1,197
1,219
1,256
15.2
Dec.
1960
Janua ry
Area
TIME DEPOSITS
GROSS DEM AND DEPOSITS
Dema nd d e posits l
Percent
chang e from
---$4,936,594
CONDITION STATISTICS Of ALL MEMBER BANKS
Eleventh Fed eral Rese rve District
(In millions of dollars)
Jan. 25,
1961
It e m
Dec. 28,
1960
Jan. 27,
1960
4,892
2,657
890
943
157
1,3 36
5, 157
2,593
867
868
164
1,251
4,738
2,548
862
920
150
1,005
ASSETS
Loans and discounts ••....••.... •.• .. ••••
Unit e d States Governm ent obligations . . ..••
Othe r secu riti es •..•••... .. .•••.. . •••• . .
Reserves with Fede ra l Rese rve Bank •••• .. ..
Cash in vault e ••..••....•..••• •• ... • •..
Balances with banks in th e Unite d States •• . .
Balances with banks in foreign ceu ntri ese ... .
Cash items in process of collection • .• •••..•
Other a ssets e •••.•... '" •••• •. • ...•••• •
2
2
2
553
324
579
313
507
340
TOT AL ASSETs e •. • .... .. .•..•. . ... . •
De posits of individuals, partnershi ps, and corporations and of states and politica l
subdiv isions.
!l Th ese flgures include onl y two banks in Texarkana, Texa s. Total de bits fo r all ban ks
in Texa rkana, Texa s· Arkan sa s, including on o bank lo cate d In th e Eighth Distri ct,
amounte d to $50,006 ,000 for th e monlh of Januory 1961.
1
Total de posi ts •• •••. •...•...• .• • • .•.•
Borrowings e •. ..•...••• ... ...•. . ...•. ..
Othe r liabilities e .•.. ....•.......•......
Totol capital accountse ••••••.....• .•... .
DAILY AVERAGE PRODUCT ION Of CRUDE OIL
(In thou sands of borre ls)
Change from
Are a
Januar y
1961p
Decem b er
1960p
Janua ry
1960
Decemb e r
1960
ELEVENTH DISTRICT. •. • . •••
Texa s ....••.•.• . •.• ..• •
Gulf Coa st • •.....•..••
W est Toxa s •..••.•.•••
East Texas (p roper) •• •..
Panhandl e •••••.•.••.•
Rest of Slate •• ....• • ..
Southea ste rn New Mexico • •
No rthern Louisiana •• •. ••. .
OUTSID E ELEVENTH DISTRICT.
UNIT ED STATES ••.•.•••••..
2,990.8
2,617.8
479.8
1,188.7
132.9
104.2
712.2
262.6
110.4
4, 186.1
7, 176.9
2,966.7
2,592.9
477.8
1,1 71.6
13 2.6
102.0
708.9
263 .2
110.6
4,172.2
7,138.9
3,093.8
2,714.4
487.6
1,210.7
140.7
101.3
774.1
256.5
122.9
4,136.5
7,230.3
0.8
1.0
.4
1.5
.2
2.2
.5
-.2
-.2
.3
.5
January
1960
-3.3
-3.6
- 1.6
- 1.8
-5.6
2.9
- 8.0
2.4
-10.2
1.2
-.7
p - Pre liminary.
SOURCES : Am erican Pe trol eu m Institute.
United States Bureau of Min es.
Federal Reserve Bank of Dallas.
HARVESTED ACREAGE Of PRINCIPAL CROPS
(In thou sand s of a cres )
Are a
1960
1959
1958
Averag e
1949-58
Arizo na •••.••... . • • ..• • •.••
Lou isiana •••.•..•..•••••.•••
New Mexico •••• •• • ..• • •• .. ••
Oklahoma . • ••...•.•.•••.•••
Texa s . •••.•••••.• • •••. . • • ••
1,183
2,543
1,202
9,635
24, 134
1,206
2,590
1,1 47
9,468
24,086
1,2 20
2,4 14
1,122
9,285
24,286
1,157
2,899
1,314
10,301
24,568
Total .... . ................
38,697
38,497
38,327
40,239
SOURCE: Unite d Siotes Dopartm e nt of Agriculture .
BUSINESS REVIEW
12
3: 1961
11,794
lIA81l1T1ES AND CAPITAL ACCOUNTS
De mand de posits of bonks ••... . .•... .. ..
Other d e mand de posits .•.•.•.. •••.....•.
Ti me de posits ••.... ... .•.••• . . ... .•. ...
TOTAL LIABILITIES AND CAPITAL
ACCOUNTSe......... .. ........ .. .
1,338
6,670
2,593
1,373
6,745
2,504
1,094
6,642
2,145
10,601
10,622
22
170
980
9,881
101
175
915
6
165
982
11,754
=
Estimated.
BUILDING PERMITS
VALUATION (Do llar amounts in thousand s)
Pe rc e nt change
Januar y 1961 from
NUM8ER
Are a
January
1961
Janua ry
1961
Dece mb e r
1960
639
$ 4,603
- 16
43
January
1960
ARIZONA
Tucson •.•••...••••. • •..•..
LOUIS IANA
Shreveport •• .•• . . • •...••••
TEXAS
Abil e ne .. ... ..... . .. ... . . .
Amarillo •••• .... . . •• . • ....
Austin .. . •••.•.......•••..
Be aumont •.. ....•• " . ...••
Corpus Christi .•• • •• . .......
Dallas • ••.••. •....... . •• ..
EI Pa so • . ...•••••.•.•.••••
Fort Worth .. . .... ..... . . ..
Galveston •••••.• " .... •• ••
Hou ston . ••• .. " ... ••... • .
Lubbock .•..• • ......•• . •..
Port Arlhur . ... . ....... .. ..
San Antonio •.•••..•...•.••
Waco ••....••••.•.••••• .•
Wichita Falls ••. ..•••• ••••.
320
6,981
364
226
117
265
299
250
237
1,548
494
503
73
1,103
203
116
9 28
166
172
1,469
2,303
4,576
1,0 12
1,609
21,943
5,606
2,103
348
15,1 00
3,083
558
3,857
1,1 49
3,431
139
73
-24
-37
159
80
-58
- 10
122
12
93
32
-24
60
332
22
- 19
65
78
53
86
158
- 36
278
-1 1
-2 4
-49
26
-38
105
Tota l- 17 ellies ..............
7,433
$79,731
19
33
@FedFRASER