Full text of Review (Federal Reserve Bank of Dallas) : March 1968

View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

business
•
review

march 1968

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

contents

petroleum drilling
in perspective. . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
(

credit card and check credit
programs at district banks ....... . . . . . . . . . . ..

3
9

district highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

petroleum drilling
•
I" perspective
With an expanding worldwide demand for
P;tr?leum products, the search for new sources
of oil and natural gas is an important activity
~ ,the oil industry. Petroleum drilling in the
nlted States was on an uptrend for many
Years, reflecting not only the discovery and developm
'
, en t 0 f large reserves but also the rapidly
Owmg domestic and export markets. Since the
date/~50's, however, drilling activity has been
e~lli~nmg, as measured by the number of active
n n '
d '11 g figS, well completions, or total footage
c n ed, This downtrend is causing increasing
'
oncern
r egarding th e future of the domestic
0'1
'
r I Industry, particularly in a world beset by
eCurring COnflicts.

r
d

10 AI,though petroleum geologists determine the
catton of
'
~ew reserves qUlte accurately, much
drillin
g consists of exploratory wells to find the
exact 1
'
drilli o~ation of oil deposits, This aspect of
Well ng IS known as wildcatting, and wildcat
of a~l c~rrently constitute more than one-fourth
Well 011 and gas wells drilled, Developmental
s, on the other hand are drilled to obtain
crude oil
'
all' d or gas from fields where deposits have
ea Y been discovered.

ho~~~ and

gas well drilling is termed "making
ing
and. the, process involves rotating a drillIt, whlCh IS frequently made with diamonds
for cutti
tOol
ng through rock efficiently. The cable
UtU' method, an older way to drill wells, is still
tec~Z~d for shallow depths. Oil well drilling
ada nlq~es early in the industry's history were
Ptations of methods for drilling brine wells.

""d'ltions
,
reg'Drilling cOu
vary considerably among
Ions' th'
struc~e IS fa~t has tended to localize the
dent
of the mdustry around many indepenContractors, Another factor tending to

regionalize the drilling industry is the high
transportation cost involved in moving drilling
equipment, which tends to be large and cumbersome. As a consequence, major petroleum
companies, although they sometimes drill their
own wells, usually make arrangements for drilling services from a local contractor.
For a decade and a half after World War II,
one of the salient features in the demand for
fuel for the generation of energy in the United
States was the transition from coal to oil and
natural gas. In 1945, liquid petroleum supplied
32 percent of all the energy produced in the
country; by 1959, the year in which liquid
petroleum realized its largest share of the total
energy market, this figure had risen to 45 percent. For total petroleum (liquid petroleum
and natural gas), the figure rose from 45 percent immediately after the war to 74 percent
in 1962, the year in which total petroleum attained its highest percentage. Since the percentage of energy supplied by hydroelectric power
remained virtually constant during the 1945-62
period, coal was the source of energy that
yielded market after market to oil and gas.
The rapid growth in the demand for petroleum from traditional markets, such as automobiles, reflected rising personal incomes and the
increasing population. Total demand for all
petroleum products rose 80 percent between
1945 and 1959. This rate of growth has slipped,
however, since 1959. Against this background
of soaring demand, the contract drilling industry enjoyed more favorable prospects.
In the late 1950's and early· 1960's, a fundamental change occurred. Although the total
demand for petroleum products continued to

business review/ march 1968

rise each year, mainly because of a growing
economy, the share of the total energy market
captured by petroleum and natural gas leveled
off. As a result, percentage gains in the demand
for petroleum products failed to match the large
annual increases that had characterized the
decade succeeding World War II. Against this
new background, the contract drilling industry
found itself faced with a weakened demand for
new reserves on the part of the petroleum industry. Increasing costs domestically and rising
overseas supplies also contributed to the decline
in drilling.

drilling trends
During the period of rapid advance in petroleum demand following World War II, the
search for reserves intensified. There is a direct
correlation between increased supplies of domestic petroleum and the number of wells
drilled. Drilling activity was at a relatively low
ebb during the war, but total oil and gas well
completions - the largest percentage of which
are oil wells - averaged about 37,000 per year
in the 1946-50 period. From 1951 to 1955,
the average number of wells completed increased 35 percent and rose to around 50,000.
During the next 4 years, the average number
advanced to 52,870, or almost 6 percent over
the 1951-55 period.
Almost coincident with the year in which
liquid petroleum achieved its maximum penetration of the domestic energy markets, a reversal occurred in the number of total wells
completed. For instance, in 1960 the number
of new wells decreased by 3,348 from 50,179
a year earlier, and continuous declines occurred
in the ensuing years. In 1967, there were
33,558 total well completions, or 34 percent
fewer than the average numb~r in the previous
decade; and exploratory wells showed the same
percentage decline. From 1964 through ] 967,
the downtrend continued; and in 1967, wen
completions decreased 11 percent from the
year before, with exploratory wells easing 14

percent. Moreover, total footage drilled has
declined.
The trend in the number of gas wells drilled
followed a pattern similar to that for the number of total wells drilled, although the number
of new gas wells continued to move upward
until a plateau was reached in 1961 and 1962
and, thereafter, declined substantially. The
downtrend coincides with the fact that total
petroleunl achieved its greatest penetration of
the energy market in 1962. Natural gas increased its share of the market after liquid petroleum ceased making inroads.
There has been a direct correlation between
the number of oil wells drilled and the price
per barrel of crude oil. Since 1918, except fof
periods of war, drilling activity and prices of
crude oil have shown roughly parallel movements. However, since 1960, the price of crude
oil has varied little from an average of $2.88
per barrel, although a slight rise occurred in
1967 because of the Middle East war. Despite
the past close relationship between drilling and
the price of crude oil, the number of wellS
drilled eased considerably in 1960 and also
decreased subsequently. Beginning in 1962,
there has been a substantial divergence between
the two, which suggests that other factors may
be influencing the decline in drilling.
The steadily increasing costs of drilling, along
with stable domestic crude oil prices, are the
principal causes for the steadily declining number of new wells; and with the increasing costs,
there has been pressure on profits. Exploration
for oil during recent years in the continental
United States h?s emphasized deeper drilling to
tap new reserves. There is a scarcity of neW
shallow oil deposits, the type that was relatively
easy to drill in past decades. Improved secondary recovery techniques are being used in older
fields to increase crude oil supplies; in addition,
the wider spacing of wells has meant that fewer
wells are needed. Since 1960, when total oil
well completions began to decline, machinery

SELECTED NATIONAL PETROLEUM TRENDS

'THOUSANDS

200

150

100

TOTAL WELL COMPLETIONS

TOTAL FOOTAGE DRILLED

•

1960

1958

1962

1964

1966

MILLIONS OF DOLLARS

1.3

1.1

AVERAGE DRILLING COST
PER WELL
.9

1957

AVERAGE PRICE PER BARREL
OF CRUDE OIL

1959

•I I
1961

1963

I ••••••
1958

1960

1962

1964

1965
DOLLARS

- 3 .00

- 2 .90

1966

2.80

THOUSANDS OF BARRELS

REFINED PRODUCTS
AND CRUDE OIL
IMPORTS

EXPORTS .

1958

••

1960

•

1962

••• •I
1964

1966

150
100

P- Pr e liminary .
e - Es limat e d.
SOU RC ES : l l i Qjj

a..n.d !ill J.Jl..lWlal.

U .S . Bureau of Mine s.
W.Ju.W Qjj .
Federa l Rese rv e Bank of D a llas .

business review/march 1968

and casing prices have increased, and hourly
wages paid to labor have risen substantially. At
the same time, there have been improvements
in known drilling techniques but no major
breakthroughs in technology; in fact, the drilling industry has not shared in the rapid increases in productivity that have taken place in
many other segments of American industry.
The increasing costs of new wells are linked
with the trend toward drilling wells to greater
depths. Deep drilling can be thought of as the
sinking of a well to such a depth that the economic return may be marginal in relation to the
cost expended; also, the depth often is at the
limits of the capability of the best drilling equipment available at the time. Every period in the
history of the petroleum industry has had its
frontier of deep drilling. As equipment improved, the depths became steadily greater. In
the latter part of the sixties, a deep well is considered to be one over 15,000 feet deep, but
the number of such wells is still small. In 1966,
1.1 percent of all wells drilled were below
15,000 feet, as compared with about 0.2 percent in 1956.
The average footage of wells drilled has increased steadily in the last 10 years. However,
the record depth at the present time is 25,340
feet for a well drilled in 1958 in Pecos County,
Texas. Two years before, a well had been
drilled in Plaquemines Parish, Louisiana, to a
depth of 22,570 feet. From 1927 - when the
record depth was 8,046 feet - through 1958,
there were 20 new records. All but four of
these wells were drilled in either Texas or
California. Industry sources have estimated that
deep drilling accounted for 20 to 23 percent of
total drilling and equipping costs in 1966. The
percentage of deep wells is forecast to rise in
the future, meaning that an ever-larger percentage of development costs will be allocated
to deeper wells.
The steadily increasing cost of drilling a deep
well has been a major reason why the oil in-

dustry has been faced with rising costs of development. According to The Oil and Gas
Journal, the average depth of a deep well from
1958 through 1960 was 16,072 feet, with an
average cost per well of $798,000. In 1965-66
the average footage advanced to 18,146, and
the average cost per well, to $1,184,000. Thus,
between the latter part of the fifties and the
midsixties, the cost of obtaining new supplies
of crude oil at ever-greater depths rose 48 percent. The incremental costs of drilling increase
at greater depths. Between 5,000 feet and
10,000 feet, there is a rise of approximately 32
percent for each additional foot drilled; but at
depths over 10,000 feet, the increase in cost
per foot is about 48 percent.
Hourly wages in the industry have risen
steadily since the end of World War II, putting
additional pressure on drilling costs, and the
trend has continued in spite of the decline in
drilling. Moreover, the shortage of skilled labor
has become critical (especially during 1966 and
1967), and the days when a drilling crew could
be hastily put together by a call to the local
pool hall have long since passed. In the fall of
last year, the labor shortage was so acute that
drilling contractors were forced to curtail some
work because qualified personnel were not
available in several areas to man the rigs. Many
firms have found it difficult to retain workers
because other occupations - for example, factory work - offer good remuneration with better working conditions, in contrast to the rigors
of oil field work with the frequent exposure to
bad weather.
One cost that has roughly tended to folloW
the pattern of drilling has been machinery
prices. They rose steadily up to 1958, when
their rate of increase slowed; between 1962 and
1965, these prices were stable. Casing prices
also have tended to follow drilling trends, although they have moved upward since 1962.
Rising competition from foreign oil supplies
has affected the pace of American drilling. At

One time, the United States was a net exporter
of crude oil. In 1948, however, the Nation began to import rapidly increasing quantities of
crude oil; and exports began a secular decline,
to be interrupted only by periods of oil crises,
such as occurred in 1967. Imports of refmed
products also have gained in importance. Each
year since the late 1940's, net imports of refined products and crude oil have advanced;
such imports have risen sixteenfold since 1948
and increased 50 percent during the last 7
years. Rising imports and falling exports have
Illeant that a greater proportion of the demand
for oil supplies has been met by reliance on
overseas sources. Thus, increased competition
from foreign oils has come at a time of advancing costs in domestic drilling.
As a result of the decline in drilling activity,
a number of drilling contractors have left the
industry. The small, undercapitalized firms felt
~he cost-profit squeeze first and sold their drillIng rigs; consequently, the large contractors and
large oil companies took a greater percentage of
the work. However, even some of these have
felt the rising cost pressures, and one major
?Olllestic company has announced plans to sell
Its land rigs this year. In 1960, five drilling companies sold 13 rigs, followed by increasing sales
by more contractors in each subsequent year.
In 1966, 59 companies disposed of 290 rigs.
As drilling eased, new reserves of oil in relation to demand have declined in the United
States. For several decades, the number of
years' supply of all oils (crude petroleum and
natural gas liquids) was fairly stable; but in
1962 there was a decrease of 0.5 of a year, and
the ratio of reserves to supply became 10.4
years, the lowest ratio since 1926. The number
of years' supply is calculated by relating total
stOcks and reserves for all oils to total demand.
13.y 1966, the number of years' supply for all
Oils had fallen to 9.2 and was less than in any
other year in the current series, which dates
from 1919. Total stocks and reserves have

shown increases in recent years, but demand
has increased more rapidl¥. Not only is the expansion in population generating the demand
for petroleum, but per capita consumption in
the United States has risen substantially. During
the midsixties, the per capita consumption of
all oils was 21.4 barrels annually, or 16 percent
over the previous decade.

southwestern drilling
The petroleum drilling industry has been
an important contributor to the economy of
the Southwest. Some of the richest fields in
the world are located in the area; and since
Spindletop - the first major oil well in Texas
- was drilled in 1901, innumerable fields have
been developed. During 1967, 37 percent of
the total footage drilled and 34 percent of the
total well completions in the United States were
in the Eleventh Federal Reserve District, although the number of well completions and the
total footage drilled have declined in both the
Southwest and other areas of the Nation. Texas
showed a somewhat smaller percentage decrease
than did the District or the Nation, a fact which
is attributable to the significant rise in drilling
in the Delaware-Val Verde basin of west Texas
and in offshore areas.
In 1963, Texas, Louisiana, California, Oklahoma, and New Mexico ranked highest among
all the states in the value added by mining. In
mining employment, the southwestern states
ranked among the highest, and Texas led the
Nation. In capital expenditures for mining,
Texas and Louisiana led the Nation.
Also in the same year, 20 percent of all employment and 27 percent of all man-hours in
the oil and gas extraction industries were accounted for by oil and gas well drilling, with
drilling contributing 60 percent of the value
added to mining by oil and gas extraction. Since
the decline in drilling began, the number of
workers in petroleum drilling in the Southwest
has shown steady decreases. Consequently, this

business review/march 1968

activity has become both absolutely and relatively less important.

of decline in drilling will slow considerably in
the year ahead.

conclusion

Another hopeful sign has been the emergence
of offshore drilling, which has attracted widespread interest and, in itself, is a topic worthy
of a separate discussion. Nevertheless, onshore
drilling is also needed. A national defense argument can be advanced for the maintenance of a
high rate of drilling, in that only by continuous
drilling can the amount of proved reserves keep
pace with the increasing needs of the Nation
and the additional needs which arise during
periods of crisis.

The immediate prospects for a significant resurgence in drilling are not very promising unless the price of crude oil rises, imports of oil
products begin to slow, or aid is advanced to
contract drillers. In 1967 the slight increase in
crude oil prices resulted primarily from dislocations in the supply of oil during the Middle
East war; however, whether or not this increase
will be permanent enough or sufficient to help
the drilling industry remains to be seen. Currently, one industry source predicts that the rate

new
par
bank

RAYNAL HAMMELTON

The Lorenzo
member
bank 1 State .Bank at L. orenzo, Lorenzo, Texas, a par, insured nonReserve Bank ~~~e~lm the tern tory ser,:,ed by the Head Office of the Federal
are ' J W L
a. as, ~pened for busmess February 13 1968. The officers
Ha~e; Br~ce~~:!~f~r:resldent; James O'Rear, Vice President (Inactive); and

~'-edit

card and
~heck c,-edit p,-og,-ams
at dist,-ict banks
After a halting and, for the most part, un"
successful effort to enter the credit card field
in the 1950's, commercial banks in the United
States have invaded this area with numerous
tYpes of credit card and check credit programs
in the last 2 years. The rate of entry of com"
mercial banks into this field in the past year or
two has been extremely rapid. Although only a
relatively small number of banks were offering
these types of services as recently as 1965, by
the fall of 1967 over 800 insured commercial
banks in the Nation reported that they offered
credit cards and/or check credit plans and in"
dicated outstanding credit under the programs
of Over $1 billion.
The explosive growth of credit card and re"

~ated programs and, also, some of the problems

lIlvolved in this growth have created a keen in"
terest on the part of the public, the Congress,
and the bank regulatory authorities. This interest has manifested itself in a number of articles devoted to the facts and implications of
the growth of bank credit cards, in hearings
held by Congress, and in data gathering and
studies by the regulatory authorities. The in"
terest of the three Federal bank regulatory
agencies in gathering data on bank credit cards
has resulted in the addition of an item to the
periodic call report of condition for insured
commerCial banks. Moreover, in March 1967,
the Federal Reserve System organized a research group to gather data on the impor"
t~~ce .of these programs and to analyze the imp lCatlOn of the growth of bank credit card and
check credit programs for bank supervision and
monetary policy.

The questions raised by the rapid growth of
bank credit card and related programs and by
their future, both for bank supervision and mon"
etary policy, are of substantial importance. To
mention just a few of these vital questions, it
would be necessary to include the following.
What are the implications of the growth of bank
credit card and check credit programs for the
payments mechanism and the possible movement toward a checkless society? Will the increasing importance of bank credit cards result
in a more concentrated banking structure and,
thus, reduce the amount of competition among
commercial banks? Will the growth of bank
credit card and related programs hamper the
effectiveness of monetary policy? What effect
will the growth of these programs have on bank
operations? While these are some of the more
significant questions, they represent only a few
of those which could be raised. To date, many
questions have been brought up, but, as yet,
there are few definitive answers.
The purpose of this brief article is to report
on the growth and importance of bank credit
card and related programs in the Eleventh Fed"
eral Reserve District. The basic data were obtained from the April 1967 and October 1967
call reports of the bank regulatory authorities.
A review of tlle data shows that, although demonstrating substantial growth, bank credit card
and check credit programs are still of relatively
minor importance at banks in the Eleventh District. Before discussing the importance of credit
card and check credit programs among banks
in the District, however, it is first necessary to
describe briefly the major types of plans offered.

business review/march 1968

COMMERCIAL BANK CREDIT CARDS
AND CHECK CREDIT PLANS, BY TYPE
OF PLAN, OCTOBER 4, 1967
Eleventh Federal Reserve District
(Dollar amounts in millions)

Type of plan
Credit cards .. .
Executive credit and
related plans . ..
Check credit .. .
All plans ... . .. . .

Number
of banks1

Eleventh Federal Reserve District
Total credit
outstanding

$ 8.1

.5
4.7
$13.3

28
37

COMMERCIAL BANK CREDIT CARDS
AND CHECK CREDIT PLANS, BY TYPE
OF BANK, OCTOBER 4, 1967

1 Will not add down because some banks offer more than
one type of plan.

(Dollar amounts in millions)
Type of bank
National banks .
State member banks
I nsu red state
nonmember banks ..
All banks .

Number
of banks

Total credit
outstanding

25
4

$ 4.1
2.6

6.6
$13.3

The types of credit plans offered by commercial banks can be divided into two broad groups
- credit cards and check credit services. The
first group may, in turn, be subdivided into
credit cards issued by banks and credit cards
issued by other firms. The travel and entertainment cards issued by other firms are typically
referred to as an executive credit plan when
they are tied into a commercial bank.
In the case of the bank credit card, an individual may charge purchases up to a designated
amount at any firm which accepts the bank's
card. It is, therefore , a convenience item to the
customer. He is usually billed once a month and
may pay the month's charges with no interest
or elect to let the amount become a loan to
be paid in a specified period with interest. In
addition, a bank credit card typically gives
the holder the privilege of drawing a specified
amount at the issuing bank automatically.
To the bank, the credit card is a source of
income, both from the discounts usually charged
the merchant (based upon the dollar value of
the sales) and from the interest payments when

the cardholder elects to pay the charge over a
period of time longer than a month. Equally important to the bank is the ability to make loanS
to individuals who are not depositors of the
bank and perhaps attract their deposits.
A second type of credit card is the so-called
travel and entertainment card, a card issued bY
another firm but with a tie-in arrangement with
a commercial bank. In contrast to bankissued credit cards, which are designed for the
average-income person, the travel and entertainment card is created for the upper-income
groups . In addition, in the case of the latter type
of card, the commercial bank enters the picture
only if the individual cardholder uses the card
to obtain a loan from the bank or to extend the
payment period on a particular purchase.
The second major credit plan is referred to
as check credit. Under this program, an individual applies to a commercial bank for a line of
credit. If it is granted, the customer may overdraw his account up to a certain amount, and
the overdrafts automatically become a loa~ ·
The plan may involve separate checks to act!-

COMMERCIAL BANKS REPORTING CREDIT
CARD AND CHECK CREDIT PLANS, BY
SIZE OF BANK, OCTOBER 4, 1967
Eleventh Federa l Reserve District

LOCATION OF COMMERCIAL BANK
CREDIT CARD AND CHECK CREDIT
PLANS, OCTOBER 4, 1967

(Do ll ar amounts in millions)
Amount
of

~ e posits

Under $5
$
...
$5 t o $10 .....
$10 to $25 ....
25 to $50 .. , .
$50 to $100 ...
$100 to $500 ..
Over $500 ....

Credit
card s
0

2
2
2
2
1
0

Number of banks offerin g:
Executive
Check
credit
cred it
0
0
1
0
0
0

0
1

4
7
7
8

Eleventh Federal Reserve District
Total'

(Dollar amounts in millions)

2
7
8
9
9
2

on' May not add across because some banks offer more t han
e tYpe of pl an.

Area
Dallas .. .. ........ .
Fort Worth ...... ... .... .
Hou ston . . .. .. .. . ... . .. .
San Antonio ... . ...... . . .
All oth ers . ......... .
Eleventh District

Number
of banks

Tota l c redit
outst anding

5
2
2
2

26
37

$ 9.5
.6
.2
.3
2. 7
$13.3

Vate the loan or may automatically go into
effect when the customer's payments exceed
the balance in his account.

the Eleventh District ranked sixth as of June
30, 1967, in terms of total assets of all member
banks.

As of the October 4, 1967, call report, 37 insUred commercial banks in the Eleventh District offered credit cards and/or check credit.
As previously mentioned, over 800 insured
conunercial banks in the Nation offered these
Plans, so that banks in the District made up
~nly a small fraction of such banks in the NaLOn. The lesser importance of these programs
at Eleventh District banks may result from the
fact that most banks in the District operate
Under the unit banking system and, therefore,
are relatively small.

As of October 4, 1967, the most popular
plan was check credit, with 28 banks reporting
this type of program. In contrast, only nine
banks indicated that they had bank credit
card plans, and only three reported executive
credit and related plans. Based on the amount
of credit outstanding, however, the picture is
somewhat different. Of the $13.3 million outstanding under all the programs, $8.1 million
was reported as outstanding under credit cards,
while $4.7 million and $0.5 million were reported outstanding under check credit and executive credit and related plans, respectively.
The relatively greater importance of credit
cards in terms of the total amount of credit
outstanding is not surprising since credit card
programs would seem to generate a larger volllme than check credit plans.

The 37 Eleventh District commercial banks
repOrted $13.3 million outstanding under credit
card or check credit programs as of the October
call, as compared with over $1 billion at all in~ur~d commercial banks in the United States
~v~g the programs. If the 12 Federal Reserve
stncts are ranked by the amount of credit outbstand'mg under these programs last fall, the
alias District would rank 11 tho In contrast,

In terms of the type of banks reporting the
programs, it is clear that national banks predominate in the number of banks with credit

business review/march 1968

card or check credit programs but insured state
nonmember banks have more credit outstanding under these programs. Thus, 25 national
banks reported credit card or check credit plans,
while eight insured state nonmember banks
and four state member banks reported such
plans.
Although credit card and check credit programs are still of relatively small importance
in the Eleventh District, their growth has been
inlpressive. Between the April 1967 and October 1967 call reports, the number of banks
offering such plans rose almost 40 percent, increasing from 27 to 37, and the amount of
credit outstanding rose about the same percentage. If this rate of expansion continues for
these types of programs, there is no doubt that
credit card and check credit programs will soon
be an important part of the banking scene in
the Southwest.
If the data on credit card and related programs are classified by size of bank, it is clear
that the offering of credit cards or related plans
is confined to the medium- and large-size banks
in the District. All of the insured commercial
banks in the District which reported credit card
or related programs on the October call report
had deposits of $5 million or more. By comparison with other banks in the District, banks
with $5 million or more in deposits may be
considered medium- to large-size banks. For
example, almost one-half of all member banks
in the District have deposits of less than $5 million. It is interesting to note, however, that the
largest banks in the District (that is, the banks
with over $500 million in deposits) have not
been particularly active in this field. As of the
October call report, only two banks with deposits of $500 million or over reported executive credit programs, one reported a check
credit plan, and none reported offering bank
credit cards.

In terms of geographical location, while the
four major metropolitan areas in the District

do not dominate the District in terms of the
numbers of banks with these plans, they are by
far the most important areas in terms of the
amount of credit outstanding under the programs. Of the 37 banks which reported credit
card or check credit programs on the October
call report, only 11 were located in Dallas, Fort
Worth, Houston, and San Antonio. Of the
$13.3 million outstanding under these programs, however, almost $11. 0 million was accounted for by banks in the four areas.
Among the four large metropolitan areas, the
position of Dallas is particularly important.
Thus, of the 11 banks which reported credit
card or related programs in the four largest
metropolitan areas in the District, 5 were located in Dallas. Even more significant is the fact
that, of the almost $11 million of credit outstanding under these programs in the four
areas, over $9 million was accounted for bY
banks in Dallas.
In summary, the growth of credit card and
check credit programs at commercial banks in
the Nation has been quite rapid during the last
2 years. The basic types of plans include the
bank credit card, the travel and entertainment
card (executive credit), and check credit. ThiS
growth has created a number of problems and
questions for the three bank regulatory agencies.
In the Eleventh District, credit card and
check credit programs at commercial bankS
have grown at a more moderate pace than in
the Nation as a whole. Yet, their growth in the
past year was quite rapid. The check credit
plans are the most popular in terms of the
number of participating banks, but the credit
card plans account for a larger amount of credit.
The plans are usually offered by the mediumand large-size banks. Most of the credit outstanding under these programs is centered in
the four largest metropolitan areas in the pistrict, particularly in Dallas.
DONALD

FRASER

district highlights
Nonagricultural wage and salary employment in the five southwestern states declined
1.7 percent in January to a level of 5,767,400.
Employment usually dips between December
and January, but the decrease this year was
smaller than would be expected normally. Both
manufacturing and total nonmanufacturing employment in January declined less than seasonally. Four out of the seven nonmanufacturing
employment sectors showed notably smaller
redUctions than usual.
Total nonagricultural employment in the five
states in January ran 4 percent above the same
month in the prior year. The gain in the number of manufacturing workers significantly exceeded the overall rise. Mining employment
COntinued under the year-earlier level, but the
increases in the number of service and governlllent employees were substantially ahead of
the increase of about 4 percent for total nonn1anufacturing employment.
The seasonally adjusted Texas industrial
prodUction index in January, at 163.7 percent
of its 1957-59 base, was nearly unchanged from
the prior month. A slight rise in mining, brought
about by an increase in the adjusted output of
crUde petroleum, compensated for a decrease
of about 1 percent in total manufacturing. The
P~Oduction of durable goods in January eased
S/tghtly from the preceding month, with six of
the nine durable goods sectors showing decreases. Among these six sectors, two (lumber
and Wood products and stone, clay, and glass
P~oducts) posted appreciable declines. Electr.lc al machinery was the only durables industry
dlSPlaying more than a fractional month-tomOnth advance. Only three nondurable goods
sectors had output increases over December.
Changes in the nondurable goods sectors varied

widely, ranging from a gain of nearly 4 percent
for leather and leather products to a fall of al1110st 18 percent for apparel and allied products.
The State's industrial production index in
January was slightly more than 7 percent over
January 1967. Advances occurred in more than
one-half of the manufacturing industries, with
the strongest gains taking place in the output of
leather and leather products, transportation
equipment, and "other" durables (primarily
ordnance). The two sectors turning in the
poorest year-to-year performances were textile
mill products - down slightly more than 5 percent - and apparel and allied products - off
nearly 13 percent. Mining activity rose substantially over a year ago, lifted particularly by
gains of slightly better than 9 percent in the output of not only crude petroleum but also metal,
stone, and earth minerals. With the strengtll
shared between electricity generation and gas
transmission, utilities moved strongly ahead of
the same month last year.
Daily average production of crude oil rose
4.6 percent in the Eleventh District during
January and was 7.6 percent ahead of a year
earlier. The monthly rate of increase was double that recorded for the United States as a
whole. Texas showed a strong advance; however, output in southeastern New Mexico was
little changed, while a slight easing occurred in
northern Louisiana.
A substantial increase in the Texas allowable
for January, which had been changed to 45.7
percent of the Maximum Efficient Rate of production from 40.8 percent in the previous
month, was primarily responsible for the rise
over December. In mid-February fue Texas
Railroad Commission revised the allowable up-

business review/march 1968

ward to 49.6 percent of permissible production, and this rate is scheduled to be maintained
in March. Allowables have also been raised
in southeastern New Mexico and Louisiana.
These increases in the allowables have been in
response to the higher demand for domestic
crude oil as a result of the reduction in imports.
A shortage of available oil tankers because of
the closure of the Suez Canal and a strong demand for oil in Europe because of belownormal temperatures have been responsible for
the reduced imports.
Registrations of new passenger automobiles
in the major metropolitan areas of Dallas, Fort
Worth, Houston, and San Antonio in January
were 9 percent above those for December. Significant month-to-month gains occurred in
Dallas, Houston, and San Antonio, but registrations in Fort Worth declined sharply. As compared with January last year, registrations in
January 1968 for the four markets combined
were 19 percent higher.
Department store sales in the Eleventh District continued strong during the 4 weeks ended
February 24, as compared with the corresponding period a year ago. Thus far in 1968, sales
have exceeded those during the comparable
period in 1967 by 10 percent.
Reflecting both normal seasonal factors and
the lesser availability of reserves, each of the
major balance sheet items except total time and
savings deposits declined at the weekly reporting commercial banks in the Eleventh District
in the 4 weeks ended February 14. In the comparable 1967 period, loans adjusted and total
demand deposits fell, while total investments
and total time and savings deposits expanded.
The reduction of $73 million in loans adjusted principally reflected a $71 million fall in
loans to nonbank financial institutions. Commercial and industrial loans declined only $4

million, which is considerably below the $32
million reduction in the comparable 1967 period. The decline of $23 million in total investments was more than accounted for by a $37
million decrease in U.S. Government security
holdings, a decrease that, in turn, was entirely
concentrated in Treasury bills. Holdings of nonGovernment issues, chiefly municipals, rose $14
million.
On the liability side of the balance sheet, the
$102 million fall in total demand deposits was
primarily brought about by a $99 million decline in the demand deposits of individuals,
partnerships, and corporations. The rise of $91
million in total time and savings deposits was
centered in an $82 million advance in the time
deposits of states and political subdivisions.
Time and savings deposits of individuals, partnerships, and corporations showed little change.

Preparation of land for spring crops continued to progress slowly throughout most sections
of the Eleventh District due to wet fields, although warm, sunny weather permitted some
field work during mid-February. Winter grains
have made relatively good growth; and in areas
where fields have dried, grains are furnishing
excellent grazing. Citrus fruits continue to move
in moderate volume in the Lower Valley of
Texas, and early varieties of peaches are beginning to bloom in south Texas.
Range and livestock conditions have been
boosted by warmer temperatures and improved
grazing. Sheep and goat shearing and lambing
continue in the Edwards Plateau, and spring
calving is well advanced.
A recent report indicates that the number of
all cattle and calves on farms and ranches in
the five southwestern states as of January 1,
1968, rose about 1 percent from a year earlier.
Milk cattle numbers continued their long downtrend, but beef cattle inventories increased 2
percent. Numbers of cattle and calves also rose

in the Nation. In the District states, sheep numbers showed a further decline and, at the beginning of this year, were 11 percent below those
on January 1, 1967.
Cash receipts from farm marketings in the
five southwestern states in 1967 totaled $4.7

billion, or 3 percent below the 1966 amount.
Lower crop receipts were principally responsible for the overall decline. Decreases in cash
receipts occurred in New Mexico, Oklahoma,
and Texas, but increases were shown in Arizona
and Louisiana. In the Nation as a whole, cash
receipts decreased 2 percent during 1967.

ELEVENTH FEDERAL RESERVE DISTRICT

OKLAHOMA

NEW MEXICO

DALLAS HEAD OFFICE TERRITORY
HOUSTON BRANCH TERRITORY
SAN ANTONIO BRANCH TERRITORY
EL PASO BRANCH TERRITORY

business review/march 1968

...,

SliATISTICAL SUPPLEMENiJ'
to the

BUSINESS REVIEW

March 1968

FEDERAL RESERVE BANK
OF DALLAS

CONDITION STATISTICS Of WEEKLY REPORTING
COMMERCIAL BANKS

BANK DEBITS, END-Of-MONTH DEPOSITS, AND DEPOSIT TURNOVER
(Dollar amounts in thou sands, seasona ll y adiusted)

Eleventh federal Reserve District
DEBITS TO DEMAND
DEPOSIT ACCOUNTS'

(In thousands of dollorsl
Feb. 28,
1968

Item

Mar.l,

Jan.31,
1968

January

1967

Standard
metropolitan
statistical area

ASSETS
Net loans and dlscou"ts ...................... .
Valuafion re'ervo, ......... .... ....... . .... . .
Gross loans and discounts ........... • •........

5,443,674
107,730
5,551,404

5,370,301
107,5 62
5,477,863

5,025,554
98,696
5,1 24,250

Commercial and indudrlal loans •••.•...••.•.•
AgriCUltural loans, excluding
certlRcates of interest •••••••••••••••• •. ••

2,652,228

2,667,946

2,479,023

98,422

96,907

89,930

8,406
27,086

8,034
47,169

29,002
30,869

454
337,350

949
327,275

1,293
310,64 1

eec

Loans to broken and dealers for
purchasing or carrying,

U.S. Government securities •.. ..... ...• . ..•
Other securities .•.......... .............
Other loans for purchasing or carryingl
U.S. Government securities • .•..•.... •.... .
Other securities .••......••••....•••.....
Loans to nonbank flnanciaiinstitutionsl
Sales Rnance, personal Rnance, foctors,
and other business credit companies .•••...

Oth.r ... .. ..... . .................... . .
Real estate loans •• .. •.••••. . . . ..•••••.....
Loan, to domestic commercial banks •••••• • ..••
Loans to foreign banks ••••• •• •••.•••.••....
COl'lsumer instalment loans ••••••••• •• ••••.•• •
Loans to foreign governments, official
in)tTtutions, central bonks, Interna tional
Institutions ••••••••...•••••.•••.••••...••

162,304
265,073
512,036
302,978
5,702
551,099

177,226
275,466
509,319
190,692
4,631
547,436

150,567
252,873
460,966
257,67 1
3,458
514,682

Other loans ............................ ..

628,266

624,813

543,275

Total Investments ... .. .......... ... ......... .

2,515,883

2,513,779

2,264,247

Total U.S. Government securities •••• ..• ....•.•

1,232,540
123,256

1,194,436
114,645

1,096,863
39,470
15, 179

223,879
635,283
250,122

194,367
673,201
212,223

155,916
630,990
255,308

Treasury bills ....... .. ..... ... ... ...... .
Treasury certlflcates of Indebtedness ••.•• ...
Trea)ury notes and U.S. Government
bonds moturlng:

WithIn 1 year ....................... .
1 year to S years •••• • •••••••••• ••••• •
After S year) •••••.••••••••.• . •• ••••••

Obligation. of sta tes and political subdivisions:
4,468
1,098,083

6,917
962,058

126,028
81,046

140,509
76,283

123,520
74,889

897,159
696,234
78,566
420,260
3,746
364,480

881,698
687,097
77,193
461,673
4,368
368,541

895,728
631,272
68,189
496,686
4,418
332,398

TOTAL ASSETS ••••••••••••••••••••••••• 10,420,002

10,364,650

9,718,492

Allother ............... . ... .... .... ... .
Other bonds, corporate stocks, and securities:
Participation certiflcates in Federal
agellcy loons •••••••••••••.••••.•••.•.

All other \Includlng corporate stocks) ••••••••
Cash items In process of collection ••••••••••....
Rese rves with Federal Reserve Bank •••• •• •••••••
Currency and coin •••••••••••••.••••••.••....

Balances with banks in the United States •••••.•••
Balances with bonks in foreign countries .•• •• .. ••
Other assets •••.••••.••.•••••• • •••••••••••••

D ec.

Jan.

1967

Annual rate
of turnove r

Jan.3 1,
1968

Jan.

Dec.

Jan.

1968

1967

ARIZONA
Tuc son ••.•.. ..•.. •..

4,376,196

$ 167,21 8

26.0

25.0

26.1

Monroe .••..••.. •.. .
Shreveport • . .•.. .. . .

2,129,016
6,270,288

1
14

15
12

84,332
226,364

26.2
26.6

27.2
23.6

24.6
25.3

NEW MEXICO
Roswell' ••••••.• • • ••
TEXAS

7 12,104

33,762

20.2

18.6

19.7

1,694,004
4,773,168
5,71 1,388

-10
14
25

96,347
138,567
230,139

17.4
34.4
25.9

17.6
:\2.9
26.4

20.3
30.6
24.6

225,26 1

24.4

25.3

24.7

75,151
191,814
27,921
1,806,759
195,838
548,244
100,548
2, 11 3,997
32,310
136,700

20.7
22.5
15.3
43.3
27.6
29.0
23.4
33.7
20.5
22.9

21.4
21.4
11.7
42.2
23.5
31.3
22.2
34.6
17.7
21.4

23.8
22.4
12.7
40.6
25.0
28.6
21.3
34.4
18.6
23.1

15.2
13.5
19.7
16.0
24.8
17.0

14.8
14.2
20.1
15.8
24.3
15.7

17.4
14.3
19.6

10
14

83,599
122,837
63,963
60,395
539,466
54,780

11
4
4
-1

60,247
83,760
116,613
109,755

22.0
19.9
19.9
18.7

21.3
19.4
20.8
19.0

2 1.1
20.0
20.6
19.3

$7,726,687

31.2

31.1

30.6

LOUISIANA

Abilene ••••• .• .. ••..
Amarillo . .....•.•.. .
Au stin ............. .
Beaumont·Port Arthur.
Orange ......•.. .
Brown sville aHarlingen_
San Benito ... •..•.
Corpus Christi .•.•. ..•
Coro;icana 2 • ••• ••• •••

Dalla s ••• •.•.... .• . •
EI Pa so ••• ..••..• •••
Fort Worth ......... .
Galveston·Texa s City .•
Houston . • . ••. .... "
Lar edo ..... . •... .. .

Lubbock ........... .
McAllen·Pharr_
Edinburg ......... .
Midland ......... .. .
Odessa ............ .
San Angelo • ••.• • •••
Son Antonio . ..... • ..
Sh erman-D ension . ....
Te xarkana (Tex a s.

Arkonsas) •.•. . ••••
Tyler .............. .
Waco ...•...•.... ..

Wichlto Falls •• • •••••

5,482,476

- 1

1,551,672
4,405,200
433,032
80,664,384
5,689,500
16,222,668
2,407,428
71,946,000
678,756
3,236,412

-3

1,375,416
1,685,268
1,237,704
989,196
13,498,09 2
908,724
1,358,244
1,730,076
2,284,908
2,085,096

4
30
4
18

-5
8

-3
13

o
o
-4
o
1
3
10

2
2
-2

-2

Total-28 centers ••••.. $245,536,416

3,544
1,072,725

Tax warrants and short-term notes and bills ••

1968
(Annual. rate
ba . i. )

DEMAND DEPOSITS'

Percent
chang e from

12
9
24
18
11
11
17
10
12

2
6
2
1
9

15.5
25.0

15.8

~~~~~----------------------------------------~~

1 Dep osits of individual s partnerships, and corporations and of state s and politicol
subdivi sion s.
'
:! County basis.

CONDITION STATISTICS Of ALL MEMBER BANKS
Eleventh federal Reserve District

lIA81l1TIES
(In millions of dollarsl
Total deposits. • • • •• • • • • • •• • • • • • • • • • • • • • • • • •

8,897,852

8,871,283

8,372,031

===================================================~

Total demand deposIts •••••••••••••••••••••

5,334,325
3,622,357
306,133
210,131
1,089,613

5,392,374
3,615,349
350,475
216,562
1,103,961

5,008,00 1
3,385,688
346,994
88,532
1,093,858

Jan. 3 1,
De c. 27,
Jan . 25,
_______________
lte~m__________________l~9~6~8______~1~9:67_______~
19~6:_7
___

3,564
22,221
80,306
3,563,527

3,501
20,938
81,588
3,478,909

3,153
20,428
69,348
3,364,030

1,086,010
1,785,674
658,417
11,701
18,725

1,085,503
1,769,550
592,775
10,407
17,174

1,107,857
1,563,843
662,357
8,789
19,654

Individua ls, partnershIps, and corporations • • ••

States and political subdivisions ••••••••••••
U.S. Government •••••• ••••••••• ••••••• ••

Banks in th e United Stotes ............... ..
Foreign:
Governments, offlcial Institutions, central
banks, International institutions ••.•• ••• .
CommercIal banks .•....•••••••••••• •••
Certified and ofncers' checks, etc .••••••••..

Totol time and savings d . poslts ••••••••••••••
Individuals, partnerships, and corporations:
Savings deposits ••••..•.• ••• .•• ••••• ••

Other time deposits ................... .
States and political subdivisions •• • .•.....••

U.S. Government (including postal savings) •••
Banks in the United States ................ .
Forelgns
Governments, official institutions, central
bank", international institutions •••..•...
Commercial banks •.••• _ • •••• • ••• ••••••

2,800
200

2,800
700

800
730

8i11s payable, rediscounts, and other
lIabllitie. for borrowed money • •••••••••• ••.•
Other liabilities ............................ .

397,317
225,898

397,516
202,998

310,977
183,153

CAPITAL ACCOUNTS ..... ......... .. ...... . .

898,935

892,853

852,331

TOTAL lIA81l1T1ES AND CAPITAL ACCOUNTS 10,420,002

10,364,650

9,718,492

ASSETS
loan s and discounts.. .... . ..... ........ .
~.~. ?ove r~~ent obligation s•.•. .• ........
e se curatles ........ •.. . .. ....• . •...
Reserves with Fed e ral Reserve Bank •••• ....
Cash in va uft . . ....................... .
Balances with bonks in th e United Stat es .. . .
Balances with bonk s in foreign countriese .. . .
Cash items in proce ss of coll ection • •.•....•
Other asse tse . .. .... .. ... . ............ .

9,428
2,552
2,698
1,149
238
1,148

TOTAL ASSETse .................... .

18,677

LlA81L1TI ES AND CAPITAL ACCOUNTS
Demand depo. its of banks •••.••.••..••. .
Other demand d e posits ................. .

7
997
460

9,518
2,549
2,662
1,159
243
1,255

~
1,560
8,666
6,583

Total capital accountse • .....•....... . •..

16,443
422
280
1,532

16,809
386
336
1,544

TOT AL lIA81LITIES AN 0 CAP ITAL
ACCOUNTSe ••.•••.•••..••• • ••..••

18,677

19,075

Total depo.its ...................... .
Borrowings ... ... . ...••.......•.•......

Othe r liabilltie.e •...•••..•••••.••. ' " ..

910
485

1,208
475

1,389
8,312
6,742

Time d e posits . .. ...... . . ..... . .....•...

8,669
2,298
2,27 1
1,108
230
1,08:

1,330
7,67 4
6,040

1 5,044
322
229
1,467

~~~~--------------~==~---===~--~~=--e
Estimated.

CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS

GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS

(In thousonds of dollars)

Eleventh Federal Reserve District
(Averag e, of dally flgures. In million, of dollars)

Jan.31 ,
Mar. I,
Feb. 28,
________________ _
t e_m___________________l_9_
6 _8_______1_9_6_8 _______1_9_6 7____

GROSS DEMAND DEPOSITS

b~tal

gold cerfiAcate reserves •• ••..•.. ..••..
O:hounts for member banks ••••••••••••• • • •
Us discounts and advances •• •.. .. ..•...•
T~I~I e~~e~nme nt securities •••...••.••••.•••
Me b nln9 a ssots •• • ••••.•••••...•.••• . •
Fedm Or bonk reserve d e posits ••••.••.••...•

°G

oral Reserve notes in octual circulation • ••••

381,505
7,316

380,978
41 ,036

364,849
8,1 28

2,02 1,417
2,028,733
1,13 2,565
1,380,260

2,009,600
2,050,636
1,148,634
1,389,203

1,839,665
1,847,793
1,055,090
1,236,397

---------------------------------------------------------

Re serve

Country

TIME DEPOSITS
Country

Rese rve

Dat e

Total

city banks

bon ks

Total

city banks

bonks

1966, January •••
1967, January •.•
August •• ••
Septe mber.
October •••

9,147
9,352
9,178
9,426
9,511
9,582
9,841
9,923

4,235
4,226
4,268
4,408
4,448
4,417
4,589
4,560

4,912
5,126
4,910
5,018
5,063
5,165
5,252
5,363

5,577
5,934
6,394
6,398
6,457
6,509
6,571
6,698

2,700
2,645
2,742
2,743
2,753
2,744
2,762
2,815

2,877
3,289
3,652
3,655
3,704
3,765
3,809
3,883

November ••
December .•

1968 , January •••

INDUSTRIAL PRODUCTION
(Seasonally adiusted Indexes, 1957·59

= 100)

Decemb er
1967

Novem ber

January

1968p

1967

I 967r

MTotal industria l production ••••••
<t)ufacturlng •.. •• .••• • ... ••.•
Nuroblo .....................
Mini~ndurob/o • ••••• .. •• ••..• • .•
Utillti~;"""" "" """'" •

163.7
183.1
209.4
165.6
126.4
211.9

163.1
185.4
212.0
167.7
12 1.4
211.9

158.8r
177.0r
201.5r
160.6r
123.0r
209.3r

152.9
172.5
195.5
157.1
117.0
190.5

MJatf'1 industrial production ••••.•

161.0
163.0
168.0
157.0
122.0
192.0

162.0
164.0
168.0
158.0
123.0
192.0

160.0r
161.0
164.0
157.0
124.0
190.0r

158.0
160.0
166.0
153.0
123.0
181.0

January

--"'::"ea and typ e of index

RESERVE POSITIONS OF MEMBER BANKS
Eleventh Fe deral Re serv e District

TEXAS

U~ITED ST~TES" """"""""

D
acturlng ••••• •••••••• .• ••
Nurablo .....................
U

Mini~ndurab/e •• •• •.••. .••..•.••
g
Ullllr • ·• ·· ·•·· .. · • .. • .. • .. · .

---:.:.... .. ................
~
So
-

(Averag es of daily Agures. In thousands of dollars)

Item

5 weeks ended
Feb. 7, 1968

4 weeks ended
Jan . 3, 1968

4 weeks en de d
Feb. I , 1967

704,367
653,520
50,847
700,998
3,369
3,138
231

700,387
648,625
51,762
693,379
7,008
3,678
3,330

644,965
595,975
48,990
638,960
6,005
343
5,662

706,351
536,640
169,7 11
666,676
39,675
4,165
35,510

683,094
518,925
164,169
650,078
33,016
1,308
31,708

673,042
510,800
162,242
631,019
42,023
1,955
40,068

1,410,718
1,190, 160
220,558
1,367,674
43,044
7,303
35,7 41

1,383,481
1,167,550
215,931
1,343,457
40,024
4,986
35,038

1,318,007
1,106,775
211,232
1,269,979
48,028
2,298
45,730

RESERVE CITY BANKS
Total reserves held •.•••..•....
With Foderal Reserv e Bank ••••
Currency and coin ••••• ••••••
Require d rese rves •.. ..•• ...•. •

Excess reserves .•••......•..••
Borrowings •....•••••...•.•..•
Free reserves •••••• • • •. .. •.•••

COUNTRY BANKS
Total reserves hel d •••.....•...

Preliminary,
Revisod.
URCES, Board of Governors of the Federol Reserve System.
Federal Reserve Bank of Dallas .

With federal Reserve Bonk . • • .
Curre ncy and coin •• ••• • ••• . •
Required res erves •• •• •••• • • •• •

Excess reserves •• •••.•••..••••
Borrowing s••• ••••••••••••••••
Free roserves • • • •• ••••••• •• •••

ALL MEM8ER BANKS
Total res e rves held ••• . .•.. • .. •
With Federal Re serve Bank ... .

BUILDING PERMITS

~~~~~~~~==~====~======~~==~=

Currency and coin •••••••••••
Require d reserves ••• • • • ••• • •••
Excess reserve s ••••••••••• ••• •
Borrowings •••••••••••••••••••
Free reserves •• •••••• ••• •• •• • •

VALUATION (Dollar amounts In thousands)
Percont chango

NUMBER
January

_____ Are a

January 1968 from
January

Decemb er

January

1968
1968
1967
1967
ARIZONA ------------------------------------------------TUCson

LOUISIAN~ " ' "' ''''''''' ..
Monroe W
Shrev

•

est Monroe •••••••

TEXAS e port ........... ... . .
Abilene
A",arill~"""""""'" •

AUllin • • :··· · · •••••• • •••••
Beaumont: • ••• ••••• • ••• •••
Brownsville' ••••••••••••• • •

Corpus Ch : . • • • •.•••• • ..••
Dalla s

nstI •••••••••••

I "

EI Pas~"""" " """'"
Fort W" i, .............. ..
Galves~rt •••• • ••• ••••• •••
Houston on •••••••••••••••••

Laredo ················· •
LU.bbock · •.•.•..•..•••••.•
Midland' " " . " ..••.•..••
Odessa· · ·· · · · ·· · ······· .
Port Arti,...... • ...•..•..•.
San Ang ~r • .. • .. ••• •.•••••
San Ant e r · · .. ·· .... ·· ..

TOl\ark On 0 • • • • • • • • • • • • • • •
Waco ana •• ••• • •• •• •• ••• •

Wichit~' il' ............. .
1
a s •••• " '" •• • ••
0lal-24 cities

------==:.:......... .. .. ..

NONAGRICULTURA'L BMPLOYMENT

1,694

53
260

1,803
1,700

- 12
-58

13
75

24
106
324
111
136
356
1,220
425
361
57
1,736
33
116
48
52
47
59
903
31
185
60

480
1,899
7,462
1,383
265
7,065
15,7 45
9,884
3,554
442
36,507
103
2,449
683
551
206
452
17,53 1
355
2,134
548

-58
36
-15
40
78
378
-29
119
-39
-28
57
-66
72
5
110
- 15
-6
145
154
359
- 27

-68
33
45
134
4
195
9
48
-32
-26
114
-83
10 3
12
11
-67
- 15
186
114
301
34

7,197

$ 114,895

494

Five Sauthweste rn Statesl
Percent change
Numb er of persons

Type of employment
Total nonagricultural
wage and salary workers ••
Manufacturing • • •••••••• •
Nonmanufacturing • • ••• •••

Mining ••• •••••••• ••••
Construction •••••• •••••
Transportation and
public utilities ••••••••

Trad e ••••••.••••..••.
Finance •••••••••••••••
Service •••••••••••••••
Government •••••••••••

Jan. 1968 from

January

December

January

Dec.

1968p

1967

1967r

1967

Jan.
1967

5,767,400
1,066,000
4,701,400
220,100
364,000

5,868,000
1,072,200
4,795,800
220,800
377,200

5,545,800
1,0 15,900
4,529,900
230,200
351,000

-1.7
-.6
-2.0
-.3
-3.5

4.0
4.9
3.8
-4.4
3.7

429,900
1,313,700
280,000
878,200
1,215,500

434, 100
1,389,000
279,800
878,500
1,216,400

425,200
1,274,900
269,700
823,700
1,1 55,200

-1.0
-5.4
.1
.0
- .1

1.1
3.0
3.8
6.6
5.2

Arizona, Loui sia na, N ew Mexico, Oklahoma, and Texas.
p - Prel iminary.
r - Revised.

SOURCE , State employme nt agencies.

VALUE OF CONSTRUCTION CONTRACTS

CASH RECEIPTS FROM FARM MARKETINGS

(In millions of dollars)

(Dollar amounts in thousands)
d
Percont

Janua ry

Dece mb er

Novemb er

January

Area and type

1968

1967

Area

FIVE SOUTHWESTERN STATES' .....

453
199
177
77
3,714
1,462
1,347
905

398
154
156
88
3,996
1,404
1,550
1,042

411
170
150
91
4,258
1,71 7
1,586
956

344r
130r
96
118
2,912r
I,011r
1,175
726

Arizona ...... . ... . . . . ..... .
loui siana . ................. .
N ew Mexico .••.... • . ••.. •• ..

Residential building •• •••..••••••
Nonresidential building . • • .••.•• •
Nonbuildlng construction ••• ••••••

UNITED STATES • ••••••• • •••••••••
Residential building • .. •• •.•• ....
NonresIdential building • ••••••..•

NonDuJldlng construction ••• . • • •••

1967
$

Texas .... ..•...... . ..•.... .

506,702
602,182
286,969
825,011
2521,774

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

$ 4,742,638
$42,471,196

Oklahoma •••. •••• .••• ••••.•

chang~

1966
500,104
549,948
289,562
852,627
2,698,583

1
9
-1
-3
-7

$ 4,890,824
$43,2 18,835

-3
-2

----

SOURCE, U.S. Department of Agriculture.

lArizona, Louisiana, New Mexico, Oklahoma, and Te.xa s.
r - Revised.

NOTE. - De tails may not add to totals because of rounding.
SOURCE, F. W. Dodge, McGraw· Hill, Inc.

LIVESTOCK ON FARMS AND RANCHES,

JANUA~Y

DAILY AV'ERAGE PRODUCTION OF CRUDE OIL

(In thousands)

(I n thousands of barrels)

================================================~~

Percent change f~

Fiv e so uthwestern

sto tes l

Te xas

United States
January

Dece mb e r

Janua ry

Dec emb er

JanuarY

Species

1968

1967

1968

1967

1968

1967

Area

1968p

1967p

1967

19~

Cattle •••••••.
Milk cattle ••
Beef cattle • •
Sheep ••••••••
Stock sheep.

10,972
589
10,383
4,206
3,986
220
926
18,582
785

10,757
611
10,146
4,802
4,582
220
785
20,415
734

19,568
1,316
18,252
5,735
5,360
375
1,628
29,193
'856

19,328
1,348
17,980
6,471
6,048
423
1,410
31,391
' 839

108,813
22,231
86,582
22,122
19,184
2,938
54,263
424,550
7,289

108,645
22,913
85,722
23,898
20,661
3,237
53,249
428,746
7,817

ELEVENTH DiSTRiCT ••••..••

3,743.3
3,252.2
648.9
1,528.3
150.2
95.8
829.0
321.7
169.5
5,488.1
9,236.3

3,579.6
3,087.7
613.3
1,438.6
139.7
94.5
801.6
320.4
171.5
5,440.5
9,020.1

3,478.4
3,002.6
561.1
1,397.8
142.0
96.5
805.2
318.1
157.7
5,088.6
8,567.0

4.6
5.3
5.8
6.2
7.5
1.4
3.4
.4
- 1.2
.9
2.4

7.6
8.3
15.6
9.3
5.8
_.7
3.0

Feeders ..••

Hogs ••• •• ••••
Chickens' •••••
Turkeys• ••••..
1

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

East Texas (prop er)•••..
Panhandl e ••••• . •••. "
Rest of State ..........
South ea stern New Mexico •.
Northern loui siana .•. . •...

OUTSIDE ELEVENTH DISTRICT
UNITED STATES ........... .

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

2 Does not include commercial broilers.
3

Texas .•.•..•.......... .

Excludes New Mexico, which was combined with Idaho, Montana, and Wyoming

to avoid disclosure of individual state operotions.

p -

U . S. Bureau of Mines.

SOURCE, U.S. Department of Agriculture.

Federal Reserve Bonk of Dallas.

ELEVENTH FEDERAL RESERVE DISTRICT
~ 00110. Heod Off ice Territory

IIIDll Hou.ton

Bronch Territory

Il:·:·:·:·:1 Son An ton io Bronch Territory
~ EI Po.o Bronch Territory

Prolimlnary.

SOURCES, American Petrol eum Institute.

1.1
7.5
7.9
7.8

-----