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MONTHLY
BUSINESS
REVIEW
of

the

FEDERAL

Volume 35

RESERVE

BANK

Dallas, Texas, May 1, 1950

Dallas
Number 5

EIGHTH ANNUAL RETAIL CREDIT SURVEY
ELEVENTH FEDERAL RESERVE DISTRICT
JACK

D. COLCLOUGH, B1tsiness EC0110mist
Federal Reserve Bank of Dallas
Summary

Sales of automobile dealers reached record levels in 1949, but the adverse effect of last year's
moderate economic readjustment on many kinds of retail stores in the Eleventh Federal Reserve
District was clearly revealed by the Eighth Annual Retail Credit Survey conducted by the Federal
Reserve Bank of Dallas. Of the nine types of retail stores surveyed, only automobile dealers and
auto tire and accessory stores showed an over-all increase in their 1949 sales as compared with 1948.
In the other lines, aggregate sales of reporting stores reflected decreases ranging from 4 percent for
furniture stores to 9 percent for jewelry stores. Cash sales evidenced the largest decreases, continuing
the downward trend which began in 1947. Although credit sales were off slightly, the decline was
entirely in the charge account category, since instalment sales at most types of stores rose substantially.
Accounts receivable outstanding-both open credit and instalment-continued to expand in the
Eleventh District despite the contraction in sales in most lines, with total receivables at the end of
the year 12 percent higher than a year earlier. Particularly sharp increases were noted in the instalment receivables, and the increases would have been even more pronounced in some lines if it had
not been for heavy sales of instalment paper. The expansion in accounts receivable was in line with
the national growth of consumer credit and reflects, in part, the heavy volume of consumer buying
of durable goods normally sold on a deferred-payment basis. A prime factor promoting sales and
increasing the accounts receivable was the liberalization of credit terms, particularly following the
expiration of consumer instalment credit controls on June 30, 1949. Moreover, the lower down payments and the slowing in collections as manifested in longer pay-out periods, as well as less prompt
payments, contributed to the rise in receivables.
The reduction in inventories, which was a dominant characteristic of the economic readjustment
of last year, was apparent in most of the lines surveyed. The year-end stocks of seven of the nine
lines covered were noticeably lower than a year earlier. The lower stocks at the end of 1949 are
more impressive when it is considered that sales at that time were generally showing a buoyant
tendency, while the higher stocks of a year previous occurred at a time when sales in many lines
were declining substantially.
Description of the Survey
The Eighth Annual Retail Credit Survey, as in previous years, covers data obtained from
representative retail stores in the Eleventh District in lines in which credit sales normally constitute
a significant proportion of total sales. The types of stores included in the survey are automobile
dealers, auto tire and accessory stores, department, furniture, hardware, household appliance, jewelry,
men's clothing, and women's apparel stores. Retail stores reporting in the survey are independent
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

MONTHLY BUSINESS REVIEW

stores and local outlets of chains operating in limited areas, since the activities of national chain store
outlets located in the District were included in consolidated reports made directly to the Board of
Governors of the Federal Reserve System for inclusion in its National Retail Credit Survey.
Coverage was greater in this year's survey than in previous surveys, both as to the number and
geographic distribution of the firms reporting. The number of reporting firms totaled 656, operating
826 retail outlets with a volume of business exceeding a half billion dollars. On the basis of national
experience, it would appear that the types of stores covered by the survey do almost 40 percent of
the total retail trade of the District, more than 80 percent of the total sales of durable goods stores,
and slightly less than 20 percent of the total sales of nondurable goods stores. If food stores and
eating places are excluded, the sales of the surveyed lines comprise 36 percent of the total sales of
nondurable goods stores. Reports were received from stores located in 138 cities and towns in the
Eleventh Federal Reserve District, with all the principal areas in this District being represented.
Almost half of the stores reporting were in cities and towns of less than 10,000 population, while
two-thirds were in cities and towns of less than 25,000 population.
The survey this year covered total sales, cash sales, and credit sales (charge account and instalment), as well as end-of-year receivables outstanding and inventories for 1948 and 1949. Before
considering the detailed information revealed by the survey, it may be desirable to review the general
retail picture during 1949 and the various economic developments which influenced retail sales.
Economic Trends Affecting Retailing in 1949

Total retail sales in the Eleventh Federal Reserve District and in the Nation as a whole maintained a high degree of stability during 1949, despite the moderate economic readjustment experienced
during that period. While total retail sales held close to the 1948 level, sales of many retail lines were
affected adversely by the economic readjustment. In fact, sales of all retail lines except the automotive
group and filling stations were lower in 1949 than in the previous year and, except for jewelry and liquor
stores, represented the first declines since the war. The stability in total retail sales was due largely
to the increase in the sales of automobile dealers, which offset the declines in other lines. The increased
resistance in consumer buying and the "shopping" for lower prices, which were reflected in the
declining sales volume in most lines, resulted in an intensification of competition, accompanied by
a narrowing of profit margins and a substantial decline in net profits of many retailers. Failures
among retailers increased significantly, although the failure rate continued to be considerably lower
than in the prewar period.
In the fall of 1948, retailers in many lines began to note a weakening in their sales. Recognizing
the implications of their declining sales, they began to appraise their inventories, both as to level and
balance, and to take steps to put their inventories on a sounder basis. A substantial selective cancellation
of orders was instituted.
Although the 1948 Christmas season produced a fairly high level of sales, the declining tendency
evident during the preceding few months was carried over into the new year, being particularly
noticeable in consumer durable goods. The sharp decline in sales of household appliances and furniture
during the first few months of 1949 was an outstanding development in this period of economic
readjustment. Even automobile sales, particularly in the used car market, showed some slowing, and
a note of hesitancy crept into the construction industry. Merchants energetically attempted to rid
themselves of slow-moving items, to reduce stocks of staple items to levels commensurate with the
existing demand, and to acquire distress stocks for promotional purposes. Inventory clearance sales
became widespread, and orders outstanding were reduced sharply. These cutbacks in orders naturally
had their effect on the wholesaler and the manufacturer, who, in turn, attempted to reduce their inventories. Prices were lowered and unemployment increased, particularly in manufacturing industries.
While the increase in unemployment was greater in other sections of the country, a larger-than-seasonal
rise in unemployment was noted in the Eleventh Federal Reserve District during the first few months of
1949. Oil production in this District was cut heavily, particularly during the first few months of
the year, with production in April more than 20 percent less than 4 months earlier and at the lowest

DA®;HAR;-··-I'.

BORGER

DUMAS

P~PA

AM;'LLO

•

CHILORESl

PORTALES ,

•

OISOEE

.""'-.

LA~CRUCES

-L .

---...

'WICHITA FALLS

I.UBBOCtI

ROlRING
SPRINGS

LA~ESA
•

CARLSBAD

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NI<
W®

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®
C

COlORADO

GAINESVILLE
BOWIE
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E
CAM Y

STAMFORD

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WEATHER'O~~S
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ABU.ENE BREct<ENRIDGE

KERRVILLE

MARSH1L.L

RUSTON

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I ~HREVEPORT @ ®
•• LONGVIEW

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•

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-KILGORE

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ANTONIO

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MC~L~N~ ®HARLINGEN
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..
WES A~NSVILLE

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LOUISIANA
FERRIDAY

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BRENHAM

SAN MARCOS
~ ti)LUUNG
NEW BRAUNFElS @LOCKHART

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B~AN

®rAYLOR

CITIES COVERED IN 1949 RETAIL CREDIT SURVEY
ELEVENTH FEDERAL RESERVE DISTRICT

TEXARKANA

p*~~~~®®GARlANO

AU~I

ALPINE

GEOGRAPHICAL DISTRIBUTION OF REPORTING STORES

MG KINNEY
MT.PLEASANT
_ _ ••
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®ATLANTA~'

BURNET

P~I S

MINERAL

Cl.AfH(SV~L

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""
T
®CISCO""
WAXXHACHIE AT'ffENS
ER ColHENDERSON
SWEE WATER
COLEMAN
ST"EPHENVILLE
(it)
®JACKiONVI LLE\
BALLINGER ®
CORSltANA
(i)
@RUSK
®
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PALESTINE
(i)
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® MIDLAND

M .................

GRAHAM

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BROWNF"IELO

NEW MEXICO

I
~RIZONA'

TUCSON

PADUCAH
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ANGE

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•

LVESTON

®FREEPORT

MONTHLY BUSINESS REVIEW

level in more than 2 years. Moreover, a sharp decrease in copper and other nonferrous metals mining
reduced employment markedly in some portions of Arizona and New Mexico falling within the
Eleventh Federal Reserve District, while similar cutbacks in lumber production distinctly affected
portions of the District in Louisiana and east Texas. By and large, however, total employment in
the District continued at a high level.

SELECTED NATIONAL ECONOMIC INDICATORS

MILLIONS OF DOLLARS

1926 100

II.

PERCENT

200
I 80

~WHOLESALE

PRICES

I80
I40
I 20

SOtlRCE: II.S.8(JREA(J OF

~~~ S;A~/S;'~S, I , I
BILLIONS OF DOLLARS

.U.

Ll LLt.'

I 00

PERCENT

210
200

5",.--

,,-/
BUSINESS

""'" -

""" -

INVENTORIES~

./"'

SOiIHC£: lJ.$.DEPAHrMENT
OF COMMERCE.
I

1948

1949

, . . -INOUSTRIAL PRODUCTION

'\
'\ A/

I 90

I 80

"" ,
..

1935 39 100

.L1

I 70
I60

SOIlR'CC.'FCI)CRAL RESERVE

80ARD.

1950

I 50

1948

1949

1950

The decline in industrial production induced by the cutback in orders did not seriously affect
the level of consumers' incomes. Moreover, despite this economic readjustment during the first part
of 1949, consumer confidence in prospective income was not appreciably impaired, with the result
that the level of total retail sales was maintained. While in many lines the dollar volume of sales
showed a declining tendency, consumer response to clearance sales and attractively priced merchandise was very good, and merchants were able to maintain their physical volume of sales.
In the spring of 1949, automobile sales, which had slowed temporarily during the winter months,
again attained heavy volume. Construction picked up seasonally, and consumer buying of appliances
and furniture showed some improvement. Consumer instalment credit controls under Regulation W,
which had been reinstituted in September 1948, were liberalized in March and again in April and
then were abandoned at the end of June, when the temporary authorizing legislation expired.
Although industrial production continued to decline to midyear as business reduced inventories, the
stability of retail sales augured well for an ultimate upturn in the economy.
By fall, automobile sales and construction were at all-time highs. Merchants were again in the
market, not only having worked off most of their excess inventories but having allowed stocks of
some items to fall below desirable working levels. Oil production in the District increased appreciably,
and drilling activity reached a new peak. Business expectations, despite the steel strike, became more
optimistic; employment rose; and nonagricultural prices began stabilizing. Farm producton in this
District, due in part to unusually favorable weather conditions, established a new record, and farm
income attained the high levels of the previous year despite a decline in farm prices. Total retail
sales were maintained, and sales picked up in some lines that had been previously depressed. Christmas
buying in the Eleventh District reached record proportions, with the dollar volume probably slightly
higher than the previous high of the year before and the physical volume noticeably higher, in view
of the lower prices which existed. Retail trade, in particular, and business in general in the District

MONTHLY BUSINESS REVIEW

thus ended the year on an optimistic note. Economic conditions in the Nation as a whole may not
have been quite as favorable as in the District, but business optimism was amply evident throughout
the country.
Total Sales

Total sales in the Eleventh Federal District in the lines surveyed, following the same pattern
as in the Nation as a whole, showed a slight decline during 1949, after having registered uninterrupted
increases in the six previous annual surveys. Automobile dealers
TABLE I
and auto tire and accessory stores
PERCENTAGE CHANGE IN SALES AT RETAIL STORES IN ELEVENTH
were the only lines to experience
FEDERAL RESERVE DISTRICT AND INDEPENDENT STORES IN
larger sales in 1949 than in 1948,
UNITED STATES, 1948 TO 1949, BY KIND OF BUSINESS
the increases being 17 and 1 perIhdepcodent sLorul
Ret.ail Jtores
Eleventh District
United States
Kind of buaine88
cent, respectively. These increases,
14
Automobile
dealers
.
.....
........
.
.
.
.
......
...
.
.
..
.
17
however, were sufficient to offset
1
Auto tire and accessory stores .... . ...... . . ...... . . .
-8
largely the declines in the other Department stores ..... .... .... .... .............. .
-6
-5
-6
-4
seven lines, ranging from 4 to 9 Furniture stores ... . . ... .. . . ...... . .. .. .. .. ....•..
-11
-8
Hardware stores ...... .... .. . . ... . .. . .. . .. .• . ..•..
percent. In all lines the sales HoU!ehold appliance .tores ... .. . .. . ....•.. . ... . . . ..
-1
-6
- 12
stores .. .. .. . ... . . ..... . ........ . . ..... . . .
-9
performance in this District was Jewelry
- 6
Men'. clothing stores ........ .. . . .. . . .. ..... . .... . .
-10
better than that of independent Women'. appareistores ............ .. ........... .. .
-9
-7
stores in the same lines in the Source of data (or independent .t.oree. Unit.ed States: United States Bureau of C008tta.
Nation as a whole, based on data
compiled by the United States Department of Commerce.
Although the decline in total sales of reporting stores in all lines was less than 1 percent, half
of all stores reporting had sales declines of 4 percent or more, and one-third of the stores had declines
exceeding 10 percent. The substantially greater number of stores having declines larger than the
average for all stores results from the tendency of the larger stores, which constituted a minority in
the survey, to show a more favorable sales picture than the smaller stores. Only two out of every
five stores surveyed experienced an increase in sales during 1949. It will be noted, however, that 5
percent of the stores had sales increases of 50 percent or more, while one-fourth of the stores had
increases of 10 percent or more.
DISTRIBUTION OF RETAIL STORES
ACCORDING TO Pt:RCENTAGE .CHANGE IN SALES.1948 TO 1949
nEVENTH 'EDERAL RUERVE DISTiller

Sales of automobile dealers, still under the
stimulus of the backlog of war-deferred demand, rose sharply during 1949 to reach an
all-time high. The continued expansion in automobile production, which had been a limiting
factor in sales in the earlier postwar years, of
course, enabled the dealers last year to make such
a favorable showing.
The increase in District automobile sales was
spread over most dealers, irrespective of the size
of the dealership or the make of car sold. More
than seven out of every eight dealers reported
increases in sales. The impressive sales picture is
revealed by the fact that half of all dealers
showed increases in sales of 20 percent or more,
and one out of every six dealers reported increases of 50 percent or more.

Despite these large gains, it will be noted that the 17-percent over-all increase in the sales of
automobile dealers was less than the 21-percent increase in 1948 and substantially less than the
percentage increase in earlier postwar years. The smaller percentage increase in 1949 in relation to
that of prior postwar years naturally is explained by the fact that sales at the war's end had been
reduced to extremely low levels, being limited largely to repair work and used car transactions.

MONTHLY BUSINESS REVIEW

N evertheless, the smaller percentage increase in 1949 sales reflects .the growing competItIOn in the
trade as the backlog of consumer demand became more nearly satisfied. Although the list price of
new cars evidenced a high degree of stability, concessions in the nature of more favorable trade-in
allowances and cash discounts had become common by the end of the year, and priees of used cars
dropped appreciably.
Total sales of auto tire and accessory stores surveyed rose 1 percent in 1949 to continue the
upward trend noted in the seven previous surveys. Although this increase was made despite lower
prices for tires, batteries, seat covers, and many other important accessories, the sales picture among tire
and accessory stores was not as favorable as might be indicated by the over-all increase. Almost twothirds of the stores experienced decreases in their 1949 sales. Moreover, sales of one-half of the stores
were 4 percent or more below those of the year before, and approximately one out of every four
stores showed decreases of 10 percent or more. The larger stores tended to have better sales records
than the smaller stores. Moreover, those stores which gave greater emphasis to instalment selling
appear, by and large, to have been more successful in maintaining their sales volume.
TABLE II
DISTRIBUTION OF RETAIL STORES ACCORDING TO PERCENTAGE CHANGE IN SALES '
1948 TO 1949
Eleventh Federal Reserve District
Percentage cbange in sales

Automobilo
dealers

-50 and over .... . . .
-40
-49.9 .. .. . .
-30
- 39.9 ... ...
- 20
- 29.9 . . . . ..
-10 - -19.9 .... . .
- 9.9 . .. ...
0

1
1
4
5
6

+ 9.9 .. ....
0
+19.9 . . ....
+10
+ 29.9 ......
+ 20
+ 39.9 . . . .. .
+ 30
+49.9 ... .. .
+40
+50 and over .......

21
31
24
14
6
23

T otal .... . .. .... ..

136

Auto tireacd Department
aeccssory stores
Btores

&tor..

Number of stores
Hardware
Household
appliance stores
stores

Jewelry
&\qr"

4
26
36

8
4
4

11
2
2

1
81

2
8
28

Meo's
clothina: stores

Women's
apparel stores

1
3
7
17

Furniture

2
9
18
13

19
3
3
4
1
1

12
5

101

1
2
6
3
11

2
6
14
14

All

.tores

2
3
10
47
145
185

4
14
31

3
30
26
4
6
1
2

99
59
37
24
12
33

656

10
2
2
3
3
5

4
3
1

10
3

2
2

4.8

• Each firm was counted as a sioale store, although in 47 CMCfl. flrlD3 operated more than onB store.

The severe weakness in furniture store sales during the early months of 1949 was dissipated in
subsequent months, with the high volume of sales during the last half of the year reducing the over-all
sales decline for the entire year to 4 percent. In view of the declines in furniture prices which took
place during the year, it is probable that furniture stores did a larger physical volume of business
in 1949 than in the previous year. The heavy volume of sales of furniture stores during the latter
half of the year was undoubtedly influenced by the record volume of residential home construction
which occurred during that period. Half of the furniture stores reporting showed a change in their
sales volume ranging between decreases of 10 percent and increases of 10 percent, with an additional
one-fourth of the stores reporting declines of between 10 and 20 percent. The remaining one-fourth
of the stores were about equally divided between those having sales increases exceeding 10 percent
and those with sales decreases exceeding 20 percent.
\Vhile household appliance stores showed a larger decline in sales during 1949 than furniture
stores, the pattern of sales during the year was very similar in these two lines of trade. The boom
in residential building during the latter half of the year undoubtedly was as much of a stimulant to
appliance sales as it-was to furniture sales. Moreover, in some of the larger cities in the District the
advent of television broadcasting furnished a large market for television sets for both household
appliance stores and furniture stores. In some respects, the sales picture for household appliance stores
was more favorable than for furniture stores. For instance, despite the 6-percent decrease in the
total sales of all appliance stores reporting, more than half of the appliance stores reported increases
in sales for 1949. Moreover, one out of every fou r stores reported increases in sales exceeding 20
percent, and one out of every ten stores had increases exceeding 50 percent.

MONTHLY BUSINESS REVIEW

Hardware stores, with a sales decrease of 8 percent, had a poorer sales record in 1949 than any
of the other lines surveyed except jewelry stores. Almost one out of every five hardware stores
reported a decrease in sales of 20 percent or more. The less favorable showing of hardware stores
may reflect, in part, the intense competition that prevails for this type of goods-competition for
hardware goods which extends from national department stores and mail order houses to drug
and variety stores.
Continuing the softness which developed in consumer luxury goods about a year and a half
after the end of the war, sales of jewelry stores showed a decline in 1949 for the third successive
year. Total sales of reporting jewelry stores were 9 percent less than in 1948, as compared with a
I-percent decline in 1948 and a 10-percent decline in 1947. More than three-fourths of all the jewelry
stores surveyed experienced lower sales, with almost half of the stores reporting decreases exceeding 10
percent.
Sales of men's clothing stores were down 6 percent in 1949, the second successive annual decrease.
A shift in consumer buying from the higher-priced to the medium- and lower-priced clothing, a
development which was facilitated by the greater availability of lower-priced merchandise, was an
important factor in the decline in the dollar volume of sales. In addition to this trading down, prices
of clothing actually declined moderately, and prices of some lines of men's furnishings declined rather
substantially. Despite the decline in the dollar volume, the physical volume probably showed little
change from 1948 levels. Nevertheless, the sales volume of men's clothing stores appears not to have
held up as well as the sales of men's clothing departments in department stores. Almost four out of
every five stores surveyed reported sales decreases, with almost half of the stores experiencing declines
up to 10 percent and one in five stores having declines between 10 and 20 percent. Although a little
over one-fifth of the stores reported increased sales, the gains at most of these stores were less
than 10 percent.
In contrast with the weakness in the demand for consumer durable goods during the early
months of 1949, women's apparel stores began the year with a fairly high sales volume, but after
Easter, sales dropped off noticeably and continued at a disappointing level throughout the remainder
of the year. The major style change of 1947, which after a reluctant consumer acceptance had stimulated sales considerably during 1948, thus appeared to have largely dissipated its influence after the
first few months of 1949. Moreover, the strong demand for consumer durable goods after midyear
undoubtedly had an adverse effect on women's apparel sales. Total sales of women's apparel stores in
1949 were 7 percent less than in the previous year. As in the case of men's clothing stores, a decline
in prices was responsible, in part, for this lower dollar volume, and the physical volume of sales
probably was not much lower than in the previous year. Over four-fifths of all stores reporting
showed declines in sales, with half of the stores showing declines exceeding 9 percent. A little less than
20 percent of the stores experienced increased sales, and only about one store in eight showed increases
of 10 percent or more.
Because department stores have such a large variety of merchandise, including consumer durable
goods as well as apparel and other soft goods, the sharp decline in sales of consumer durable goods
during the early part of last year was partially offset by the continued large volume of apparel sales.
Moreover, the later easing of women's apparel sales was counterbalanced by the increase in sales of
consumer durable goods. Consequently, department store sales, although showing a moderate decline
for the year, had a higher degree of stability during the course of the year than some of the other types
of stores. Furthermore, while consumer durable goods stores made a more favorable showing than the
soft goods stores, the sales experience of the department stores fell between these two general
categories. The intensification of competition, the decline in prices, and the aggressive action in
reducing and balancing inventories, which were evident in the other lines of retail trade, were
particularly noticeable in department store activities.
Total sales of department stores in 1949 were 5 percent less than in the previous year. D epartment stores, it will be noted, showed a smaller variation in sales performance among the individual
stores than any other line. Almost half of the department stores reported sales decreases ranging

MONTHLY BUSINESS REVIEW

between 5 and 15 percent, and four out of every five stores had decreases up to 20 percent. About
one in six stores showed increases, most of which were less than 10 percent.
Cash Sales
The declining trend in cash sales which became apparent during 1947 continued in 1949 at an
accelerated rate. Total cash sales of all kinds of stores surveyed declined 6 percent last year, with
three out of every four stores experiencing a decrease. Automobile dealers were the only line to show
an increase in cash sales. A substantial increase in consumer financing of automobile purchases directly
through financial institutions was probably responsible for the rise in cash sales of the automobile
dealers. As revealed in Table III, declines in cash sales of other lines ranged from 9 percent for
department and women's apparel stores to 23 percent for furniture stores. In the case of the latter
type of store, nine out of every ten experienced lower cash sales.
TABLE III
PERCENTAGE CHANGE IN SALES ACCORDING TO TYPE OF
TRANSACTION BY KIND OF BUSINESS, 1948 TO 1949
Eleventh Federal Reserve District
Kind or business

Automobile dealers ............. . ... .
Auto tire and accessory stores ....... .
Department stores ................. .
Furniture stores . .. . ........... . ... .
H ardware stores . . . .. .. ........ . .. . .

Household appliance stores ......•. . ..
J ewelry stores .. .. . . . . . . .. ... . .... . .
Men's clothing stores . .. . ..... ... ... .
Women's apparel stores ... . . . . ..... . .
All stores ... . . . ........... . .... .

Casb sal ..

7
- 12

Charge account
oaJ..

Ill6talment.

..I"

-9

3
- 16
- 3
- 7
-4
-10
-1
- 2
-4

15
- 3
21
- 4

-3

-9
- 23
-12
-13
- 18
-13

I lodioate& c.hange of leM Lhan one-hair of I percent.

22
5

This widespread decline in cash
sales last year reflects, in part, the
reduction in total sales of most of
the retail stores. Nevertheless, the
less favorable showing of cash sales
than credit sales is indicated by the
decrease in the proportion of total
sales which cash sales constituted.
Cash sales comprised only 40 percent
of the total sales of the stores surveyed, as compared with 42 percent
in 1948. Cash sales have made up a
progressively smaller proportion of
total sales since the war ended. This
decline in the proportion of cash
sales was evident in all lines last year.

Credit Sales
While aggregate credit sales for the nine lines surveyed showed a slight decline last year, they
made a much stronger showing than cash sales. Moreover, the smaller credit sales were almost entirely
the result of a decline in charge account sales; instalment sales increased markedly in a majority of
the lines and were undoubtedly an important factor sustaining total sales in 1949.
Charge account sales declined
TABLE IV
last year in eight of the nine lines
PERCENTAGE DISTRIBUTION OF SALES ACCORDING TO TYPE OF
covered, with only automobile
TRANSACTION, 1948 AND 1949
dealers showing an increase in this
Eleventh Federal Reserve District
type of transaction. For most
lines the decline was small, but
Charge account
ill!taJment sales
Totalaales
Cash sale5
oaJes
auto tire and accessory stores and
1948
1949
1948
1949
1948
1949
1948
1\H9
Kind of business
household appliance stores experi23
28
19
100
100
Automobile dealers. . . . . . . . . . .. 52
20
58
enced declines of 16 and 10 per- Auto tire and accessory stores.. 42
11
48
40
100 100
49
10
54
8
8
100 100
Department stores. . . . . . . . . . . . 38
39
53
cent, respectively. Of the eight Furniture
71
67
100 100
stores . . . . . . . . . . . . .. 13
17
16
16
lines having lower charge account H ardware stores. . . . . . . . . . . . . . 48
100 100
44
7
51
45
5
100 100
34
37
44
38
Household appliance stores. . . .. 22
25
sales, however, the declining tend- Jewelry
37
25
23
100 100
stores. . . . . . . . . . . . . . .. 36
40
39
ency was not universally apparent Men's clothing stores. . . . . . . . .. 46
1
100 100
52
50
2
49
2
100
100
2
42
57
56
in all stores. For instance, two out Women's apparel stores.... .. .. 41
100
42
43
18
15
100
All
stores.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
..
40
42
of every five stores in the auto
tire and accessory line, furniture
line, and the hardware, the household appliance, and the jewelry lines had increases in their charge account sales, and one out of three
of the department and women's apparel stores had increases. Moreover, a substantially larger number
of men's clothing stores showed increased rather than decreased charge account sales.

MONTHLY BUSINESS REVIEW

The heavy demand for consumer durable goods, together with the relaxation and later expiration
of consumer instalment credit controls in midyear and the progressive easing of credit terms, tended
to foster a strong expansion in instalment sales. Intalment sales, in the aggregate, rose 19 percent.
Particularly sharp increases in instalment sales were noted among automobile dealers and hardware
and auto tire and accessory stores. Increases exceeding 50 percent were reported by 9 out of every
10 automobile dealers and, exceeding 500 percent, by 7 out of every 100 dealers. Almost one-third
of the hardware stores showed increases in instalment sales exceeding 50 percent, while one out of
every five auto tire and accessory stores had like gains. The proportion of instalment sales to total
sales of all lines increased from 15 percent in 1948 to 18 percent in 1949. Despite this increase, it
will be noted that instalment sales still constituted a smaller proportion of total sales of these lines
than in the prewar year 1941.
Accounts Receivable

Accounts receivable outstanding, after a temporary dip in the early months of the year, continued
in 1949 the markedly expansionary trend evident since the end of the war. The growth in consumer
credit in the District, as indicated by the survey, parallels the increase which occurred throughout
the Nation. Not only has the conTABLE V
tinued heavy demand for consumer
durable goods had a powerful effect
PERCENTAGE CHANGE IN TOTAL ACCOUNTS RECEIVABLE,
OPEN CREDIT AND INSTALMElI.'T RECEIVABLES
in increasing consumer instalment
BY KIND OF BUSINESS, 1948 TO 1949
credit outstanding, but the lowering
of down payments and the lengthEleventh Federal Reserve District
Ill3talmenl
ening
of pay-out periods following
Total accounts
Open credit
Kind of bwines8
receivable
receivables
receivables
the expiration of Regulation W
. 18
Automobile dealers . . . ............•..
46
125
have exerted a strong influence in
Auto tire and accessory stores ....... .
12
5
#
D epartment stores ................. .
9
2
33
this direction. With the intensified
Furniture stores ..... . . .. ....... . • ..
21
7
~~
competition
which existed in 1949,
H ard ware stores .. . ........ . .... . .. .
22
23
Household appliance stores ......•. . . .
3
40
52
the easing in credit terms became,
Jewelry stores ........... ...... .... .
1
-5
~
in some cases, an important selling
Men's clothing stores .. ............. .
5
5
Women's apparel stores ............. .
5
5
6
factor. In addition, consumers' in30
comes were being stretched more
All stores . .. .. . ................ .
12
3
and more to meet commitments
I Indicates change of less than on&-halr of 1 percent.
arising from past purchases, with
the result that collections tended to slow. Indicative of this was the increase occurring in most lines
in their open credit receivables, at the same time that charge account sales generally were showing
a decline.
All lines of retail trade surveyed showed an increase in receivables outstanding for the year,
irrespective of the declines in sales experienced by most stores. Although the most marked expansion
TABLE VI
DISTRIBUTION OF RETAIL STORES ACCORDING TO PERCENTAGE CHANGE IN ACCOUNTS RECEIVABLE*
1948 TO 1949
Eleventh Federal Reserve District
Percentage change
in accounts receivable

Automobile Auto tire and Department
accessory stores
dealers
&\ores

-50 and over .......
-40 - -49.9 ......
-30 - -39.9 .. ....
- 20
-29.9 .... . .
-10 - - 19.9 .. . ...
0 - - 9.9 ......
0
+10
+20
+30

3
3
4
7
12
6

1
2
3

2
9
14

12
6
17

10
6
7

22
18
3
3

Furniture
,10m!

4
5
13

6
5
3

9
16
6
7

105
86
68
39
36
92
589

1
3
12

131

counted

1
1
9
6

3
8
8
24
49
71

Total. ............
W&I

a single store. although in '3 cases. firms operated more 'ban one store.

3
2

All

stores

21
9
5
1
2
4

firm

Women's

4
7
7
4
3
7

13
39

~ch

3
1

Men'a

clothing stores apparel stores

1
2
4
10

18
18
17
9
11
10

•

1
1
5
2
1

Jewelry
stores

1
1
3
6

+ 9.9 . . ... .
+19.9 .. . .. .
+29.9 . .. ...
+39.9 ......
HO - +49.9 ......
+50 and over .......

Number of.tares
Hanlwaro
Household
,tor..
appliance atores

MONTHLY BUSINESS REVIEW

occurred in the instalment receivables, charge accounts for all stores, with the exception of jewelry
and auto tire and accessory stores, showed an increase. The greatest expansion in receivables was in
the consumer durable goods stores, with automobile dealers and household appliance stores reporting
outstanding increases of 46 and 40 percent, respectively. Moreover, in these two lines, the receivables
failed to reflect the large sales in instalment paper made during the year.
Most retail stores in all lines except automobile dealers retained their instalment paper, financing
it either through their own resources or by other means. A majority of the automobile dealers, however, sold the bulk of the instalment paper accumulated through their sales. A significant number
of household appliance stores also sold their instalment paper, while a small number of auto tire and
accessory, furniture, and hardware stores
financed instalment sales, in part, through the
sale of such paper. Despite the fact that such PERCENTAGE CHANGE IN INVENTORIES,BY KINOS OF BUSINESS
sales more than doubled during 1949, however,
""''''''.'''' ,. "".'" _.""
the instalment receivables of these stores illELE VENTH FEDERAL RESERVE D'STR'CT
creased sharply.
WO.EN·S APPAREL ' STORES
• •• •1
JEWEL.RY STORES
In connection with the large expansion ill
HAROWARE STORES
instalment credit among the stores surveyed in
this District, it is important to note that total
DEPARTMENT STORES
instalment credit in the Nation rose during 1949
MEN'S CLOTHING STORES
almost 27 percent to $10,891 million. This large
F'URHITURE STORES
increase was due chiefly to the tremendous exAUTOMOBILE DEAI.ERS
pansion in instalment credit for automobiles,
which rose from $1,961 million at the end of
AUTO T IRE AND ACCESSORY STORES •
• ••
•
1948 to $3,144 million one year later. InstalHOUSEHOLD APPLIANCE STORES • • • • •• •
ment credit arising from the sale of other
consumers' goods rose $529 million to $3,096
million, while consumers' loans payable on an
instalment basis were up $ 579 million to $4,651 million.

Inventories

The reduction in inventories, which was probably the most outstanding characteristic of the
economic readjustment in the District and in the Nation during 1949, was clearly manifested by the
survey. Aggregate inventories of all stores reporting were 5 percent lower at the end of 1949 than
on the same date of the previous year. Seven of the nine lines showed decreases; only jewelry and
apparel stores indicated higher stocks. Automobile dealers and household appliance stores were two
TABLE VII
DISTRIBUTION OF RETAIL STORES ACCORDING "TO PERCENTAGE CHANGE IN INVENTORIES'
1948 TO 1949
Eleventh Federal Reserve District
Percentage change in in ...cntorics

Automobilll

dealers

- 50 and over ... . . ..
-40 - -49.9 .... ..
-30 - -39.9 ......
-20
- 29.9 .. ....
-10
-19.9 .... . .
- 9.9 ......
0

13
11
18
16
11

9.9 . ... . .
- ++ 19.9
.... ..
-- +29.9 ......
- +39.9 ......
HO - +49.9 . .. ...
+50 and over . . . .. . .
Total .............

0
+10
+20
+30

Auto tire and Department
accessory stores
stores

2
4
4
7

1
4
23
23

12
12
8
5
5
13

11
1
2

14
14
1

133

Furniture
stores

Number of Btores
Household
Hardware
appliance stores
stores

2
3
8
12
20
21
8

3
4
2

• Each firm was counted as a single store, although in 43 cases, firms operated more than one sLore,

Jewelry
stores

Men's
Women's
clothing stores apparelstores

1
4

14
14

8
17

4
3

14
5
3

1
..
4
10
18

5
3
13
7

8
8
3
1

5
3
2
2
1

2
2

1
54

All
stores

12
23

.5
12
22

62
126
140
86
61
27
14
9

10
12
3
3
1
3

621

MONTHLY BUSINESS REVIEW

lines showing some of the larger reductions in inventories, with decreases averaging 12 and 19 percent,
respectively. Although these substantial reductions in inventories may have been due, in part, to a
policy of inventory liquidation, an important factor in the lower stocks was an inability to secure
adequate replacements late in the year. The steel strike, together with model changeovers in the case
of automobiles, curtailed production in these lines. Nevertheless, it will be noted that the lower
year-end inventories were at a time when retail trade began evidencing a buoyant tone in this
District and consumer demand w as very strong for durable goods. In contrast, sales had been declining
the year before, with marked
weakness
apparent in durable
TABLE VIII
goods. In fact, the only lines
showing year-to-year increases in
PERCENTAGE CHANGE IN SALES AND INVENTORIES BY KIND AND
LOCATION OF BUSINESS, 1948 TO 1949
their inventories-jewelry and
women's apparel-were lines in
Eleventh Federal Reserve Dis trict
which the sales pattern at the end
Number
P ercentage chauge 1949 over 1948
of 1949 did not compare favorKind of businw by locativo
of storce
Inventories
Total sales
ably with a year earlier.

Automobile dealers :
Austin ................... .. ..... .
Dallas ....... . ......... • .. .. . . ...
Houston .. . ...... . .......•..... . .
TJubbock .............. . . ... . .. . . .
San An tonio ......... . . . ..... . ... .
Department stor es:
Dallas .................... . . . ..• .
Fort Worth ... . . . . . .. . ... . . ..... .
H ouston ...... . .... . ...... .. . . .. .
San Antonio ....... . ... . . . . . .. . . . .
Fur niture stores:
Beaumont ... . .. . ... . ........... .
Dallas ......... ... ... . ....... . .. .
Houston . ..... ... . ... . . ......... .
P ort Arthur .. . .. . ......... .. .... .
San An tonio ..................... .
Shreveport ..... . . . . .. ... . ...... . .
H ousehold appliance stores:
Dallas . . .. . .. . .......... .
Jewelry stores:
Dallas ....... . ........... • ...•.•.
Houston . . . ....................•.
Men's clothin g st ores:
H ouston .... . ........ . . .. ....•...
P ort Arthu r ........... . ......... .
Shreveport ....... . ..... .. . .. . . .. .
Women 's apparel stores:
Dallas ...................... . • . • .
Galveston ............. .. . .. . . •...
Houston . . . . .... . . . . .. .....•.. . • .
San Antonio .. .. ...... . . . . .... . . . .
Shreveport .. . .......... .. ....... .

4
3
4
4

20
-2
25
26

- 10
-25
-10
- 10

-5
-2
-7

-11

5
6
6
3
7
14

-16

7
- 21
-18

- 19

4
3

-22
-17

- 5

5
3
3

-5
-6
-3

-4
-2
-8

5
3
5
3
4

- 10
-7

6
3
4
4

5
5

- 5
8

-17
-5
- 10

- 38

- 15

0
13

-If

-5
23

-11

-5

-8

- 19

I Indicates cbange of 1e!S than on~bal£ of I percent.

had lower inventories at the end of the year than at the end

The over-all decline in inventories in the various lines tends to
hide the large variation which existed in the year-end stock position of the individual stores. In
other words, despite the over-all
decline, one-third of all firms surveyed showed higher stocks on
December 31, 1949, than a year
earlier. Variation in inventories
was noted particularly among
automobile dealers, with a substantial number reporting increases exceeding 50 percent and
quite a few having percentage decreases of like amounts. Although
three out of every ten furniture
stores reported decreases of 20
percent or more, two in every five
showed increases. Moreover, despite the noticeable increase in the
aggregate stocks of jewelry stores,
three-fourths of all such stores
of the previous year.

Recent Trends and the Outlook for Retail Trade
Retail trade in the District during the first few months of 1950 has evidenced a buoyant tone,
with particular strength apparent in the consumer durable goods lines. Sales of automobiles, household
appliances, and furniture have been at high levels. The noticeable reduction in prices and the widespread clearance sales which marked the early part of 1949 have not prevailed this year. Nevertheless,
many phases of the economic readjustment last year as related to retailers have carried over into this
year. Among these aspects of readjustment are:
( 1) R etail stores are continuing to show a diversity in their sales performance, not only among
the t ypes of lines but also within the same line. In contrast with the strength of sales of the consumer
durable goods stores, some of the nondurable goods stores have been having disappointing sales.
Moreover, business failures among retail stores are rising.

1I1ONTHLY BUSINESS REVIEW

(2) Competition in practically all lines has continued to be very keen, and aggressive merchandising has been necessary to stimulate sales. Profit margins are narrowing, although net profits
have been more satisfactory than during the first half of 1949, when stores, in some cases, took
inventory losses in order to move excess inventories and eliminate slow-moving merchandise.
(3) Prices, while showing a high degree of stability during these early months of the year, still
give indications of being under pressure toward downward readjustment. Consumers have continued
to be very selective in their buying and are "shopping for bargains."

(4) Despite the improved tone in consumer buying, merchants continue to follow a conservative
inventory policy, holding to short-term ' commitments and limiting purchases to stock replacement
and attractively priced merchandise for promotional purposes.
(5) The shift in retail trade from cash sales to charge account sales and from charge account
sales to instalment sales has continued. The liberalization of credit terms is becoming an increasingly
important factor in sales. Instalment accounts receivable have continued to expand as a result of the
heavy volume of instalment sales, the lengthening of the pay-out period, lowering in down payments,
and the tendency among consumers to be less prompt in meeting their commitments. Insofar as the
continued rapid expansion of consumer credit and the use of liberal credit terms have been important
in the sales of merchandise, the situation is not reassuring for the long-term maintenance of a high
level of retail trade.

Economic activity in the District-the industries which supply the consumers with the funds
to buy-has shown considerable strength during the first few months of the year. Although oil
production was reduced slightly during the first 3 months, production allowables were increased
'substantially in April, and the industry's unfavorable stock position which prevailed during most of
1949 has improved considerably during recent months. Housing starts have been at record levels,
and the unusually large volume of construction contract awards lends promise to the industry in
the months immediately ahead. The veterans' insurance refund has been giving additional purchasing
power to the consumer, and the high level of retail trade is, in itself, generating income for those
large groups of retail employees who are, themselves, consumers. While the 75-cent wage minimum
appears to have caused difficulty for some lumbering concerns, the demand for lumber has improved
considerably in recent months. Mining activity has picked up.
Despite the present strength in the economy of the District, some factors bear watching for
the possible effect they may have on retail trade during the latter part of the year. Farm income may
drop appreciably, since lower prices are anticipated and the record crop production of last year
probably will not be duplicated, in view of acreage controls and possible weather conditions less
favorable than the unusually good weather of 1949. Although the veterans' insurance refund may
have a stimulating effect on retail trade over much of the year, the most noticeable influence will
have passed when distribution is completed within a few months. The expansion in consumer credit,
which has been stimulating trade, cannot be expected to continue indefinitely. The oil industry is
moving into the summer months, when demand is normally lower than in winter; and the pressure
of oil imports, as well as the competition from natural gas, could weaken the precarious stability of
crude prices. Moreover, in the Nation, the sustaining influence of record automobile production may
become less powerful as the backlog of deferred demand is eliminated. Adjustments in this industry,
a declining tendency in capital expenditures, and a reduction in the Nation's exports as a result of
the currency devaluations in foreign countries are factors which need to be watched. A weakening
in the national economy would undoubtedly have repercussions in the District. While unfavorable
developments among any of the above factors may not foreshadow a decline in retail trade, the
existence of these situations should temper the optimism generated by the present buoyant tendency
of retail trade.

MONTHLY BUSINESS REVIEW

Review of Business, Industrial, Agricultural, and Financial Conditions
DISTRICT SUMMARY
Prospects for crop production in the Eleventh Federal
Reserve District in 1950 were greatly improved by the rains
received over wide areas around mid-April. The planted acreages of corn, grain sorghums, and cotton received ample moisture for germination, and the , ceding of these and other summer
crops is being rushed to completion. The rains also benefited
small grains, pastures, and ranges in mOSt areas, although the
moisture received was inadequate in much of the northern
High Plains and in some western and southwestern sections of
the District. The 1950 Texas wheat crop was forecast on April
I at less than 25,000,000 bushels, or one-fourth last year's crop
and the smallest in 14 years; it appears that the rains were too
late to improve greatly the production in the Texas Panhandle.
Commercial vegetable crops generally are in good condition,
although moisture shortages still exist in some areas. Livestock
are in fair to good condition and arc expected to gain weight
rapidly as ranges and pastures respond to the improved moisture
supply.
Department store sales in the District in March continued to
exceed year-earlier levels for the fourth consecutive month, but
their showing was not quite as favorable as in February. Easter
apparel buying failed to equal the very satisfactory volume of
last year. On the other hand, the unusually heavy demand for
consumer durable goods continued to bolster department store
sales, with major appliances and radio and television sales showing extremely sharp gains over year-earlier levels. Sales at
furniture stores in the District were up seasonally in March,
registering marked year-to-year gains for the sixth successive
month.
Daily average production of crude petroleum in the District
declined slightly further in March and was about 250,000
barrels lower than a year earlier. Due to the increase in Texas
allowables, the April production rate is expected to exceed
that in March by about 130,000 barrels and that in April last
year by about 100,000 barrels. Reflecting the strong demand
for petroleum products thus far this year, United States stocks
of principal products declined sharply during the first quarter
and at the end of March were considerably lower than a year
earlier.
The value of construction contracts awarded in the District
during March rose to the highest level since the wartime peak
in October 1942. T otal awards of $110,000,000 were 62 percent greater than in February and 72 percent larger than in
March 1949. Awards during the first quarter of 1950 exceeded those in the corresponding quarter of 1949 by 57
percent, reflecting largely the 135-percent increase in residential awards. The continuance of the large volume of residential awards is an evidence of the strong demand for housing
in the lower-priced brackets.
Selected member banks in larger ci tics of the District reported an increase of more than $44,700,000 in total deposits
during the 5-week period ended April 12, with approximately
three-fourths of this growth accounted for by an increase in
demand deposits of individuals, partnerships, and corporations.
The total loans of these banks showed little change during the
period, but investments rose by about $3 1,000,000.
BUSINESS
Consumer buying in the Eleventh rederal Reserve District
during March continued the strong showing evident in other
recent months, although the retail sales picture was not quite

so favorable as in February. Sales at District department stores
exceeded year-earlier levels for the fourth consecutive month,
with the March volume showing a year-to-year increase of
5 percent as compared with an increase of 7 percent in February. Easter appa rel buying, which is normally a dominant element in department store trade at this time of year, got off to
a slow start during the first part of March. This slow pace may
have reflected the depressing influence of income tax collections, as well as a tendency of consumers to delay Easter shopping now that a wide selection of merchandise is available. In
the latter half of the month sales picked up markedly, but the
total dollar volume for March showed a less-than-seasonal increase from the previous month.
The sustained gains in department store sales over yearearlier levels have been due to the stimulating effects of the
distribution of veterans' insurance refunds, a continued high
level of COnsumer income, the confidence in the business outlook, the strong demand for consumer durable goods, and the
liberalized credit terms which are now available. The veterans'
insurance refund, it should be noted, has been paid-out at an
extremely rapid rate, with more than three-fourths of the total
refund having been distributed by the end of March. It is
expected that the refund will have been largely completed by
the end of April. Although retail trade may be bolstered during
the corning months by the continued expenditure of insurance
refunds, as well as by the improved financial position of veterans who have used the refunds to reduce indebtedness, the
influence of the refunds probably will be less pronounced.
The dominant reason why department store sales did not
reflect the fulJ seasonal increase in March was the failure of
women's apparel sales to come up to expectations. Sales of
women's and misses' dresses were 9 percent below the March
1949 level, women's and misses' coat sales were 20 percent less,
and sales of women's and misses' ready-to-wear accessories
were 1 percent less. It will be noted, however, that sales of
women's apparel in March of last year were still at a very high
level. In contrast with the year-to-year decline in women's
apparel sales, sales of men's clothing showed a healthy increase
of 11 percent.
The heavy demand for consumer durable goods continued to
be a vital force maintaining department store sales. Sales of
major household appliances in March were double the somewhat
depressed level of the same month a year ago and were at the
highest level for any month on record. Moreover, sales of radios,
phonographs, and television sets, due largely to the latter item,
were more than double the sales volume of the same month a
year ago, while furniture and bedding sales showed a 17 -percent
increase over the volume of a year earlier. Of the major housefurnishing lines, domestic floor covering was the only one to
show a year-to-year decline, with a decrease of 2 percent.
Instalment buying continued at a very high level in March,
reflecting the heavy demand for conSumer durable goods which
are normally purchased on a deferred-payment plan, as well as
the liberalized credit terms now prevailing. The ratio of instalment sales to total sa les rose from 11 percent in February to 13
percent in March to constitute the highest proportion on record. The ratio of charge account sales to total sales showed a
small decline for the month and, at 56 percent, was 4 percentage points lower than in March last year. Meanwhile, the declining trend in the proportion of cash sales which has been
ev ident in recent years continued in March, with cash sales
comprisin g only 31 percent of total sales, as compared with 34
percent in the same month last year.

MONTHLY BUSINESS REVIEW

The ratio of collections to receivables outstanding for both
instalment accounts and charge accounts rose noticeably, reversing, in the case of the instalment collection ratio, the
downward trend apparent during the past 8 months. While
these increases in the collection ratios may be due, in part, to
the use of veterans' insurance refunds to payoff accumulated
debts, it will be observed that the collection ratios customarily
tend to rise during the month of March.
WHOLESALE TRADE STATISTI CS
===K.;~ Percentage change in

=Marcb 1950KetsaIes
from
3 mo. HI50
March
1949

Lines of trade:·
Automotive snpplies..... ........
Drugs and sundries. . . . . . . . . .. . ....
Dry ,ood!.. .......... ... . . . . . . . ..
Grocery <full-line wholeMlers not
eponsormg groups). . . . . . . . . . . . . . .
Hardware...... ..............
Industrial supplies. .. . . . . . . . . . . . . . .
Machinery equipment and supplies
except electrical. .. .. . . . . . . . . . .. .
Tobacco products. . . .. .. . . . .. .. . . .
Wiring 8upplie!, constnlction material! distributors........... ....

Feb.
1950

compo wit.h
3mo, 1949

- 10
16
:;

32
12
16

8
23

-36
1

Stockat

March 19/iO from
March
Feb.
1949
19bO

4
5
1

-15
5
8

-6

- 4
-22

-2
2

- 24
2

19
25

4
13

5
23
- 14
• Preliminary data. Compiled by United States Bureau of Census.
t Stocks at end of month.
, Indicates change of less than one-ba1f of 1 percent.

2
I

-8

===N."~ Percentage cbange in

=March 1960NetfromsaltJI 3 mo. 1950 MarchStochlt
1950 from
March

Feb.

1049

1950

5
5
5

24
17

g'!ll:
~.h.r~~::::::::::::::::::: :
Fort Worth ...................... .

Houston .. ..................... __ _
San Antonio . .................... .
Shreveport. La .. . . ... ... ... . . . ... .
Other cities .. ................. . .. .
Furniture stores:
Total Eleventh District . . ___ . . . . . . .
Dallas ............ .. .... .. .. .. ,
Houston......... .... .. . . ....
Port Arthur. . . . . . .
San Antonio . ......... ............
Shreveport, La. . . . . . . . . . . . . . . . . .
Wichita Falls ..... ..... ,...... .
Household appliance stores:
Total Eleventh District. ...........
Dallas . . . . .......................

-5

13
4
8

21
23
31
21l
22

compo with . March
3 mo. 1949 1949
5
5
5
8
-3
9
4

Feh.

1950

-6

- 3

14
10
10

8
6

20
21
8

- 4

-2

- 27

's
-7

28
20
21

115

14
14
10
-t6
26
23

- 18

• Indicates change of less than one·half or 1 percent.
t Stocks at end of month.

INDEXES OF DEPAHTMENT STORE SALES AND STOCKS
Daily average sales - (1935-30 - 100)
Mar.
Eleventh District ... . .
Dallas .......... ,'" ,

Houston . ... . ... .. ...

1960
362
344
374

Unadjusted'
Feb.
Jan.
1950
327
318
342

1950
313
201
343

Stocks-

Mar.
1950
Eleventh District ... .. 384

1949
352t

335

394r

M....
1950
880
366
435

Adjusted
Jan.
Feb.

Mar.

1950

1949

400

331
389

1950
396
3M
440

391r
ab6
4b9r

( 1935-39 ~ IOO)

Unadjll!ted'
Feb.
Jan.
1950
357

Mar.

1950
328

Mar.
1949
393r

Mo.r.

Adjusted
Feb.
Jan.

1950
302

1950
304

1050
353

Furniture store sales in the District showed a marked seasonal increase in March and, with a year-to-year increase of
14 percent, exceeded year-earlier sales for the sixth consecutive month. Heavy instalment buying continued to be responsible for the favorable sales performance of the furniture
stores, since cash sales continued markedly below year-earlier
levels. Collections showed a moderate gain, with the result
that accounts receivable outstanding showed a small decrease
for the month. Receivables outstanding at the end of the month
were 33 percent higher than on the same date of last year. Merchants continued to build their stocks for the spring season,
with inventories at the end of the month up 3 percent from a
month earlier. Despite the heavier volume of sales this year,
however, furniture store inventories are continuing noticeably
smaller than a year ago, reflecting the generally conservative
inventory policy being followed by the trade.

RETAIL TRADE STATISTICS

Department stores:
Tot..1 Eleventh District . .......... _

tive stock positions, their purchasing policies indicate a greater
confidence with respect to the sales outlook this year than last.

M""

1949
370,

r-Reviscd.
, Unadjusted for scB:!onal variation.

Department store stocks in March showed about the usual
seasonal increase. Despite the higher sales volume, however,
inventories at the end of the month continued to fall slightly
below year-earlier levels. On the other hand, orders outstanding
at the month's end were up 11 percent from the same date last
year. Although merchants are continuing to maintain conserva-

AGRICULTURE
Widespread rains around mid-April brought temporary relief from the drought that had prevailed in many parts of the
District for several months. Winter and early spring crops,
as well as pastures and ranges, were greatly benefited by the
timely addition to the seriously depleted moisture reserves.
Some summer crops which were planted but had not germinated
because of the lack of topsoil moisture are expected to make
rapid development. Furthermore, farmers will be able to move
ahead rapidly in preparing land and in planting summer crops.
The rains came too late, however, to be of great benefit to flax
and some of the winter grain crops, although early planted
cotton in the Coastal areas is expected to overcome the effects
of the drought except where damaged by insects. Livestock
generally are in fair to good condition, and rapid improvement
is expected to follow the recovery of ranges and pastures.
The United States Department of Agriculture forecast on
April 1 a 1950 winter wheat crop in Texas of 24,940,000
bllShels. This estimate, which is the smallest since 1936, is
only about one-fourth as large as the 102,848,000-bushel crop
produced last year and less than one-half the 10-year (1939-48)
average. The 6,235,000 acres seeded to wheat last fall is 19
percent below the record 7,697,000 acres seeded for harvest in
1949, which reflects the effect of acreage allotments. The indicated yield of 4 bushels per seeded acre compares with a 10-year
average of 10.5 bushels. This sharp reduction in wheat yields
is the result of serious drought and green bug infestation in
many of the principal wheat producing sections of the State.
Wheat has been holding up fairly well over much of the Low
Rolling Plains and the northern Blacklands of Texas, and the
rains received during mid-April are expected to increase production over April 1 prospects.
The outlook for 1950 oat production in Texas is very poor.
Green bug infestation and droughty conditions caused considerable loss of oats in the northwestern part of the State, and
before the rains it was too dry in other areas for spring seeding.
At mid-April, winter oats were heading in Central Texas, but
straw was short and heads were not filling properly. Corn planting was extended during April into all areas of the State except
the northwest, but at midmonth considerable corn remained
to be planted in the northern counties. Completion of corn
planting had been delayed by the dry weather, while much of
the planted corn had failed to germinate. Droughty conditions
also caused delay in planting of grain sorghums but, as fairly
heavy rains were received over most of the grain sorghum producing areas, it is expected that a very large acreage will be

MONTHLY BUSINESS REVIEW
planted. South Texas flax was ripening at mid-April, but yield
prospec ts were so low in somc fields that farmers were salvaging the crop for feed.
Cotton planting has been practically completed in south
Texas and the Coastal Bend, and the crop in these arcas is up
to a good stand, although some fields have been infested with
thrips. In other parts of the State, much cotton remained to
be planted following the rains. Planting of rice has been making
satisfactory progress under generally favorable conditions.
Pecan trees were leafing out in all parts of Texas in early April,
while peach trees in the central part of the State were blooming.
Progress of commercial vegetables was retarded during the
first part of April by strong winds, cool nights, and the lack
of moisture, and practically all sections were affected to some
extent. Vine crops such as cantaloupes, cucumbers, and watermelons in the early sections were hurt, and planting in the
later areas was stopped until conditions were improved. The
winds also caused damage to the tomato crop being harvested
in the Lower Valley and delayed the progress of late plantings.
In most of the later tomato producing areas, plants were still
in cold frames prior to the mid-April rains because of the need
for moisturc before setting to the fields. The south Texas onion
harvest was under way at mid-April in all areas except the
Eagle Pass and Wilson-Karnes sections. North Texas onions arc
expected to benefit greatly from the April rains as the crop
had been in need of moisture. Planting of the irrigated onion
and potato crops in the Panhandle has been making good
progress.
The early spring crop of snap beans in Texas is estimated by
the United States Department of Agriculture at 270,000
crates, compared with the 325,000 crates harvested in 1949.
The estimate of the State's early spring cucumber crop is
placed at 210,000 crates, or 30,000 below last year. The production of early spring onions is forecast at 3,976,000 sacks,
which is about one-half larger than that of last year although
only slightly above average. The Lower Valley's early spring
potato crop of 420,000 bushels is less than one-half the 1949
harvest, while the area's early spring tomato crop of 2,275,000
cratcs is only fractionally below that of last year.
The mid-April rains were beneficial to ranges and pastures
over wide areas where the lack of moisture previously had
caused deterioration in gl'azing conditions. April 1 spring range
feed prospects were described as poor, but the increased moisture at this season of the year will cause rapid improvement in
ranges and pastures. Supplementol feeding of cows and ewes
was carried on in some areas prior to the rains, and it has been
necessary to continue this practice, pending expected improvement in grazing conditions.
CASH RECEIPTS I'ROM FARM MARKETINGS

(In thousands of dollars)

February 1950
February Cumulative receipts
- - - - - - - ' -- - - - 1949 -Jan. 1 to I',b. 28-Crops
Livestock
Total
Total
1950
1949
1 7,006 I 5,663 I 12,672 I 13,574 1 43.837 $41.358
Arilona .. , ...... .
2,667
Louisiana .. ,., .. .
4.586
7.493
0,775
36,529
38.814
4,857
4,065
8,922
6,894
21,770
18,376
New Mexico ............ .
16,479
32,477
27,013
83.714
65,739
Oklahoma . . .. , ....... . . . 15,008
58,131
Texas . ... . ..... ... . . . . .
41,673
99,804
71.529
296.440
173,013

State

TotaL .... . . . . . . ...... 188.002 172,466 $161 ,368 $128,785
SOURCE: United States Department of Agriculture.

1482,290

1327.300

Cartle and calves generally are in good conditiun rhroughout
tbe District, although many in the formerly very dry areas
were beginning to shrink in early April. Local demand for
stocker cows and calves began to ease prior ro the rains because

summer range prospects were very poor at that time. Ewes and
lambs are in fair to good condition, despite the fact that in early
April the growth of grain feed was at a standstill in the
eastern Plateau counties of Texas, The spring marketing of
yearlings this year started a full month earlier than usual. Even
milk lambs were moving in volume the last week in March,
although heavy movement usually does not begin until midMay. Sheep shearing got under way the first part of April.
LIVESTOCK RECEIPTS
(N umber)

Fort Worth murkct

March
CI...

1950
Cattle..... . . . .. .. . . . . . . .. . . ... 30,503
Calves. . . . . . . . . . . . .
11,226

~hO:P : :::::::: ::: :: ..

...

z,~:t1~

March
1949
39.160
12,615
68,924
36,925

Sau Antonio market

Feb.
1950

March
1950

25.427
8,856
46.497
20,673

27,308
14.482
7,382
15,624-

March

1949
26,311
13,607
8.292

17,460·

F,b,
1950
21.103
10,429
6.238

8,&9·

• Includes itoa~
TOP LIVESTOCK PRICES

(Dollan per hundredweight)
Fort Worth market

Class

~~~~~~;t=~:~~: :::::.... ,.....

Slaughter cows .. . ... ...........
Slaughter heifers and yearlings ...

~t:~~;e:J~e:~: :::::::::::::: :

Slaughter lambs ................
Hogs ..........................

March
1950
127.00
26 .00
20 .00
28 .00
27 .00
28 .00
29 .00
17.50

March
1949
125.00
27.00
20.00
27.00
26.00
28 .50
32.00
21.25

Feb.
1950
127.00
26 .00
10 .00
28 .00
26 .56
28 .00
26 .00
18.00

San Antonio market
March
1950

Feb.

March
1949
124.50

1950
$23.00

2i:60
25.50
28.00
27 .00
27 .56
21.25

20:00
26.00
27.00
27.00
25 .00
17.50

Combined receipts of livestock at the Fort Worth and San
Antonio markets during March were 77 percent above those of
February, due to seasonal influences, the earlier-than-usual
marketing of yearling and spring lambs, the shortages of range
feed in some of the drier areas, and other factors. Large increases were reported for all major types of meat animals,
although the greatest percentage increases were for sheep and
hogs. As compared with the corresponding month last year, the
March receipts of livestock at these markets were up 18 percent,
with substantial increases in marketings of hogs and sheep offsetting declines in receipts of cattle and calves,
Prices received by Texas farmers averaged slightly higher at
mid-March than on the corresponding date in any month since
last May. The March 15 index of prices received by farmers
for all agricultural commodities was at 274, compared with
293 a year earlier and with the postwar peak of 329 in June
and July 1948. The rise in the index during the month ended
March 15 resulted from continued increases in prices of most
meat animals and slight advances for cotton, wheat, barley,
chickens, and eggs. Reports from commodity markets indicate
that from March 15 to mid-April, prices received by farmers
for cotton and corn advanced significantly, while prices of
hogs, cattle, and other grains made little net change. On the
other hand, prices of shorn lambs, poultry, and eggs declined,
Prospective Plantings in the Eleventh Federal
Reserve District in 1950

Farmers in the five states of the Eleventh Federal Reserve
District intend to increase tbeir total acreage of major field
crops in 1950 (excluding cotton) approximately 1 percent,
according to data recently released by the United States Department of Agriculture and based on a survey of farmers'
1950 crop plans. Texas farmers, who will account for about
57 percent of the acreage of these crops in the five states, have
indicated they plan to increase their plantings by about 6 percen t, as shown in the accompanying table,

MONTHLY BUSINESS REVIEW

District farmers have reduced their acreage of winter wheat
for harvest in 1950 by 19 percent, and they plan to curtail
their acreages of peanuts and rice by 11 percent and 7 percent,
respectively, in compliance with acreage control programs.
Reductions in acreages of these three important crops amount
to about 3,100,000 acres. Largely because of lower price supports for flaxseed and Irish potatoes in 1950, acreages devoted
to these crops also will be red uced. The acreage seeded to flaxseed was reduced 156,000 acres, or 39 percent below last year,
while a reduction of 8,000 acres, or 1 percent, is expected for
commercial Irish potatoes. Acreage reductions for these crops
total approximately 3,250,000 acres.

reported to be a limiting factor, many farmers have indicated
they plan to curtail acreages of crops involving heavy hired
labor requirements and to shift to those which they can handle
themsel ves with mechanical equipment. Machinery in use and
available was adequate for making rapid progress when fields
were ready last year and is likely to be ample again this year.
PROSPECTIVE PLANTINGS-1950"

(In thousands of acres)

T ....
1950

The declines in acreages of wheat, rice, peanuts, flaxseed,
and commercial Irish potatoes will be more than offset by increases in other crops. The crops showing the greatest acreage
increases are corn, oats, and sorghums; in each instance the
increase bears a very definite relationship to the acreage control
programs. Minor increases are also reported for barley, hay,
soybeans, cowpeas, and sweet potatoes.
The effects of the reduction in acreages of wheat and cotton
are reflected not only in the increase in seedings of oats and
barley but also, more spectacularly, in farmers' plans to expand
acreages of corn and sorghums. District farmers have indicated
they will increase their corn crop by about 550,000 acres and
their plantings of sorghums by more than 2,200,000 acres.
The five states' total acreage devoted to the crops discussed
above (excluding cotton) is about 38,400,000 acres. The addition of 10,156,000 acres of cotton (the amount originally
allotted to the five states) brings the total to about 48,550,000
acres. However, this is about 2,700,000 acres below the acreage
planted to these same crops last year. On the basis of recent
congressional legislation granting an increase in 1950 cotton
acreage, it is probable that the acreage allotted to the five states
may be increased by as much as 700,000 acres; and if weather
conditions permit, it is likely that farmers will take full advantage of their allotments. This leaves roughly 2,000,000 acres
of last year's cropland; some of it will be left in fallow, a considerable part will be put in legumes and grasses, and the
remainder will be left idle.
The intentions of Texas farmers with respect to crop acreages
in 1950 conform more or less to the same pa ttern as that for
the five states. They have indicated they will increase their
acreage of spring-seeded crops (excluding cotton) by nearly
2,500,000 acres, or about 25 percent, and will decrease their
acreage of fall-sown crops by a little over 1,000,000 acres. In
Texas, as in the five states, the effects of the control programs
are shown in reduced acreages of wheat, rice, and peanuts.
Substantial reductions arc also reported for flaxseed, Irish potatoes, and sweet potatoes. Offsetting these reductions, growers'
intentions indicate an increase of 42 percent, or a little over
2,000,000 acres, in grain sorghums and an increase of 500,000
acres in corn. Acreages of oats and barley show increases of 25
percent each. The principal feed grains thus show an increase
of about 3,000,000 acres. All hay acreage for harvest in 1950
shows a reduction from a year ago, due in part to the reduction
in peanut acreage.
It should be clearly understood that these data represent only
the expressed intentions of farmers at the time the survey was
made, 311d these plans may be changed in response to unfavorable weather conditions, marked changes in relative prices of
specific commodities, announcements concerning price supports, or other factors. Nevertheless, farmers were able to take
into account some of the factors affecting 1950 crop acreages
in making their plans. While availability of farm labor is not

Wheat .. .

Corn .... ..
Rice ... .

Oats ...
Darley ... .
All hay ....
Peanuts .. .
Soybeans ..
Cowpeu .... . . ,., . ... . . .

.W sorghums . . ... ........
Flaxseed .....•..........
Irish potatoes (commercial)

S",eet potatoes ... ...... . .

6.236
3.146
467
1.820
216
1.174
501
10
221
7,592
230
32

1949 1960aspercento£l9C9
7.697
81
2.599
121
1>31
88
1.456
126
172
12.\
1.223
96
589
88
5
200
177
12.\
136
5.588
360
64
38
84
55
89

Five States·

1950
12.8811
6.543
1.01\()j
3.387
6791
3.376
693+

160"
3789

9.780

240+

71·

155·

1949 1950 a8 percentof1949
81
IMIOI
4.994
III
1.1361
93
2.666
128
4961
137
3.340
101
783'
89
1269
120
333·
114
129
7.559
406'
61
70 9
90
I5(JO
103

Total. .... ..... . .. . . 21.692
20.491
106
38.401
101
37.866
•• Data regarding the acreage planted or to be planted to cotton will not be released prior
to July 1. 1950.

• Arizona. Louisiana. New Mexico. Oldahoma, and Texas
t Arizona. Oklahoma. NeW' Mexico, and Texas
t Louisiana and Texas
+ Louisiana, Oklahoma, New Mexico, and Texas
e Lou.isiaoa. Oklahoma, and Texas
• Arizona, Oklahoma, and Tex18

FINANCE
Selected member banks in leading CItIes of the District
reported total assets of approximately $3,608,000,000 on April
12. Growth in investments, balances with banks, and cash
items during the preceding 5-week period marc than offset a
decrease in reserves with the Federal Reserve Bank and a small
decline in loans, with the result that $43,800,000 was added
to total resources.
Total loans of these selected banks remained virtually unchanged-the decline being insignificant-between March 8
and April 12; on the latter date total loans amounted to
$1,186,930,000. The stability of loan volume during the latest
reporting period is in contrast with a decline of 2.8 percent
during the comparable period in 1949. The behavior of loans
during the first 41> months of this year reflects slightly lower
though generally satisfactory levels of business, as compared
with levels of business activity prevailing in the last quarter
of 1949 when seasonal and other factors exerted upward pressures in most sectors. The influence of these factors extended
into the first quarter of 1950 and tended to delay somewhat
teasonal reaction in lending activity.
Contraction in loan volume was confined to a decrease of
$11,402,000 in loans for commercial, industrial, and agricultural purposes, si nce growth in "II other categories of loans
was reported, with the exception of loans to banks, which did
not change. The greatest increases in lending activity were
reported for real-estate loans and "all other" loans, which include loans to COnsumers. As a further indication of the extent
to which total loan volume has been maintained, total loans on
April 12 were approximately 1.4 percent below the peak loan
volume outstanding on February 1.
Changes which occurred in the investment portfolios of
selected member banks in the District affected both the composition and the amount of aggregate holdings. Although investments in Treasury certificates of indebtedness and bonds
declined by more than $19,000,000, more-than-offsetting gains

MONTHLY BUSINESS REVIEW
in other categories of securities increased total investments by
approximately $31,079, 000. Changes in the composition of
Government security portfolios were caused not only by additiQllal purchases but also b)' refunding operations of the
Treasury on March 15 and April 1, which resulted in the retirement of certain maturing or called outstanding issues of certificates, notes, and bonds and the issuance of a new 1 !;4-percent
note and a new 1 y.-percent note in exchange. Largely as a
result of these refunding operations, holdings of certificates of
indebtedness declined by $18,659,000, while investments in
Treasury notes were increased by $30,587,000. Increased purchases of Treasury bills, amounting to $15,291,000, further
added to total holdings of Government securities, while a smalI
decline occurred in investments in Treasury bonds. On April
12 total holdings of United States Government securities
amounted to approximately $1,209,000, 000. In addition, these
banks added to their other investments by purchasing approximately $4,449,000 in state, municipal, and corporate securities.
As a partial means of financing the over-all increase in investments banks drew down their reserves with the Federal R eserve
Bank by $19, 179,000, although approximatel), $7,443 ,000 was
added to balances with other banks.

with $5,617,162,000 in February and $5,139,728,000 in March
of last year. Most of the decline in gross demand deposits during
March occurred at country member banks, with approximately
two-thirds of the decrease reported by these banks and onethird reported by Reserve city banks. Although total time
deposits of all member banks showed a fairly persistent tendency
to increase during recent months, a decrease of $14,647,000
was reported during March. Reserve city banks more than
accounted for this decline, since country banks showed a
fractional growth in time deposits.

CONDITION STATISTICS OF WEEKLY REPORTING MEMBER BANKS
TN J~EAD T Na CTTIES- Eleventh Fedora] Rcscrvo Diat.riot

Debits to deposit accounts reported by banks in 24 cities
throughout the District each month tend to reflect prevailing
levels of business activity. During March these banks reported
a 14-percent increase in debits over the comparable figures
for February and a 7-percent increase over March 1949. Debits
in March were influenced somewhat by an increased volume
of purchasing by individuals and others in anticipation of the
Easter season. The greatest increases for the most recent month
were reported by banks in San Antonio, Wichita Falls, Austin,
Galveston, and Monroe, Louisiana, with most other cities showing substantial gains. Banks in Lubbock reported the only decline for the period, a 9-percent decrease, with the greatest increase-a growth of 24 percent-reported by Wichita Falls

(In thousands of dollars)

Item
Total loans (gross) and invcst.m en'-" ,. _
Total loans-nett
Totalloans-jl;ross...
, ....... _ .

..
. .. .

f;::~~c~~~~~u:~~aJc:l!ssr~i=~~fti~~~:: ..

Ot.her loans ror purchasing or carrying securities ..
Real·cetate loaua .
Loans 10 banks..... .
.. ........ .
AU other loons . . . . .. . ..... . ...... .
Total investments ...... .
U. S. Treasury bills ..................... .
U. S. Treasury certifi catc6 of indebtedness ..
U. S. Treasury notcs ...... . ............... ~ ...
U. S. Government bonds (inc. gtd. obligations) . .
Other securitie8 ............. .
Reserves with FL'licra\ Reservc Bank
BaillllcC8 with domestic banks ...... .
Dcmllnd deposits - adj usted· . .. .
Time deposJts cxeept Government.
United States Government dep06ita
Interbank demand dep06its .... . ..... .
Borrowings from Federal Reserve Bank .

Apri112,
1950
$2,531,695
1,173,585
1,186,930
826,231
7,313
48,M6
97,504
79
207,757
1,344,765
95,049
262,270
191,M6
660,889
135,511
455,856
320,877
2,005,658
439,183
62,860
652,516

April 13 ,
1949
$2,225,053
1,060,820
1,070,957
736,154
6,068
52,341
87,152
2M
189,048
1,154,096
28,057
244,525
39,838
721,957
119,719
529,037
312,870
1,939,029
418,382
52,320
516,471

March 8,
1950
$2,501.141
1,175,043
1,187,455
837,633
5,881
47,623
93,874
79
202,355
1,313,686
79,758
280,929
160,459
661,478
131,062
47s.o35
313,434
1,999 ,831
434,626
53,786
653 ,938

GROSS DEMAND AND TIME DEPOSITS O~' MEMBER BANKS
Eleventh Federal Reserve District
(Averages of daily figures. In tboUBand& of dollars)

Date
March 1948 ........
March 1940 ........
November 1949 •. . •
December 1949. . ...
January 1950 . .....

[;::~r{gM~·. ::::

The greatest cha nge in the condition of selected member
banks in larger cities of the District during the period ended
April 12 was a $44,7 14,000 growth in total deposits, almost
three-fourths of which was accounted for by an increase in
demand deposits of individua ls, partnerships, and corporations.
Total demand deposits on March 15 r eached a peak of
$2,972,449,000 for the 5-weck period. However, income tax
payments on this date were large ly responsible for a decline of
more than $134,600,000 during the following 2 weeks. Treasury expenditures during the remainder of the period tended to
oif~et this decline, and deposits. increased. Favorable levels of
business activity and the strength shown b)' loan volume have
tended to maintain total deposits at high levels. The behavior of
deposit s, pa rticularly demand deposits of individ uals, par tnerships, and corporations, during the first quarter of this year has
been somewhat more stable than during the comparable period
last year when econom ic readjustments to lower levels were
under way,
Gross demand deposits of all member banks in the Eleventh
District averaged $5,566,562,000 during March, as compared

Time
$569,800
607,104
636,996
648,676
669,140
661,292
646,645

Gr...

Time
demand
$2,3.';7,864 $357,605
2,450,349
388,298
4{)8,479
2,606,217
417,067
2,712,547
423,289
2,752,603
2,660,793 420,111
2,643,667
406,065

G._
Tim.
demand
$2,661,600 $212,195
2,589,379 218,806
228,517
2,815,866
231,609
2,900,011
235,861
2,980,615
241,181
2,966,369
2,922,895 241,580

BANK DEBITS, END-OF-MONTH DEPOSITS, AND AN NUAL RATE OF TURNOVER
OF DEPOSITS
(Amount.s in thousands or dollars)

t Arter deductions tor reserves and unallocated charge-offs.
• Includes all demand deposits other than interbank and United States Government, less
cash items reported M on hand or in process of collection.

Country banta

Reserve city banks

Combined total

Gn",
demand
$5,019,464
5.139,728
M82,103
5,612,558
5,733,218
6.617.162
50566,562

Deposita·
Annual rate or turnover

---Debita+
Petg. change from
Mar.
1949

Feb.
1950

Marcb 31,
1950

M...
1950

Mar.
1949

Feb.
1050

62,797

-4

86,947

8.6

9. 1

7. 6

38,810
145,488

8
4

19
15

43,812
177,031

10.3
9.8

10.2
10.2

8.6
8.6

17,982

22,211

9.6

9.7

8.6

43,509
104,909
144,393
Aust-io .. . ...
97,482
B.eaumont .........
96,663
Corpua Christi . ....
10,249
Corsicana ..... ....
1,152,524
DaU38 .....•.•.• . .
154,625
EI P9.5o ......•...•
360,742
Fort Worth . . .. . . . .
72,082
Galveston ..... ....
Houston ... . .. .. . . 1,142,012
17,722
La.rOOo . . .•.....
79,607
Lubbock ........
38,829
PortArtbur .. . . . .
33,549
San Angelo ..... ..
321,784
San Antonio . ...
15,497
Texarkana .... .
44 ,970
61,286
;V;~::::::
65,882
Wichita Falls ... .

25
16
- 10
- 2
24
3
9
14
16

11
12
21
6
13

42,924
92,069
114,390
90,433
88,318
21 ,119
791,419
130,650
307,028
94,103
954,066
22,073
86,531
4{),371
43,655
344,665
23 .733
52,291
73,301
90,274

12.1
13 . 4
15 . 2
12 . 7
12. 8
5.8
17.4
\4.2
14.2
9. 1
14 .2
9.6
11 .2
10.0
9. 2
11.2
7.8
10.3
10.2
8.8

10.3
13. 1
18.4
11. 8
11.8
5.9
17 .2
13 .6
12.7
9.2
15 .1
9.5

10.8
11.8
12.7
11 .8
11.3
5 .2
15 .8
12.4
11.0
7.7
12 .1
9.1
12 . 6
9.5
8. 5
9. 0
7. 1
9.0
10 .0
7.1

City
Ari&OD&:
T ucmo . .... . . . . . . . S
Louisiana.:

Monroe . .... .. . . . .

Shreveport ...
New Mexico:

Roswen ..

Texas:
Abilene .. .
Amarillo

March
1950

-5
- I
I

24
-1
17
25
8
2
17
10

14
11

15
18
19
16
7
- 9
5
8

24
11
16
7
24

11.4

10 .2
8.9
9. 7
7.4
10.3
9.5
8.8

13 .4
13.3
11 .8
$3,836,401
14
Total- 24 cities . .... $4,318,988
+ Debits to deposit accounts except inf.crb3.nk accounts.
• Demand and time deposits. including certified and officers' checks outstanding but excluding dethiits to the credit of banks.
.
"
.
• • his figure includes only one bank Ln Texarkana, Texas. 10tal deblt.; for all baoks In Texarkana, Texas.Arkaosas. including two banks located in the Eighth District. amounted to $27,332.
, Indicates change of lese than one-half of 1 percent.

MONTHLY BUSINESS REVIEW

and San Antonio. The turnover of deposits, reflecting the rate
of use of deposit accounts, was 13.4 in March, as compared
with 11.8 in February and 13.3 a year ago.
Total earning assets of the Federal Reserve Bank of Dallas
declined $10,613,000 during the period March 15 to April 15,
due largely to a decline in holdings of United States Government securities. Other changes in the condition of the Federal
Reserve Bank of Dallas included a decrease of $6,700,000 in
notes in actual circulation and increases of $89,519,000 in gold
certificate reserves and $19,161,000 in member bank reserve
deposits. Although notes of this bank in actual circulation
tended to decline during the month ended April 15, the outstanding volume on this date amounted to approximately
$608,808,000, about $15,400,000 greater than the volume outstanding on the comparable date last year. A favorable volume
of trade in the District, which has been stimulated somewhat
by government payments in the form of national service life
insurance dividends, has contributed to the maintenance of
note circulation at a high level.

NEW 1\IEMBER BANK

The First National Bank in Wheeler, Texas, a conversion of The Citizens State Bank of that city, opened for
business April 12, 1950, as a member of the Federal
Reserve System, The 1ICU1 ballk has capital of $50,000,
",rpltts of $25,000, undivided profits of $10,000, and
total resources of approximately $1,500,000. The officers
are: D. E. Holt, President; R. J. Holt, Executive Vice
President; R. J. Holt, Jr., Cashier; and H. W. Coffmall,
Assistant Cashier.
NEW PAR BANK
The Home State Bank, Westhoff, Texas, an i1tSured
nonmember bank located in the territory served by the
San Antonio Branch of the Federal Reserve Ballk of
Dallas, was added to the par list on April 1, 1950. This
bank has capital of $17,500, surplus 0/ $5,000, and undivided profits of $8,575. Theo. Rogge is President and
E. R. Aschen is Cashier.

CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS

INDUSTRY

(In thOUWl<h of dollars)

Item
T

.. .. . .......... , . . .

...... ........... ..

. . ..... ... . .• .•. .. .

U.
.. .. .. .......... .. .... .
Total earnin~ S88eta ...... . .... . ... . . . . . ..... ... ..
Member ba.D reserve dcpoaib .. . . . ..... . ..... . . . . .
Federal IleserY6 notes in actual circulation . . ... .. .. .

April US,
1060
$717.795
2,060
1,393
796,456
799,909
810.373
608,608

Aprill~.

1949
$688,998
2,280
5,323
915,534
923.137
914,441
593,368

March 15,
1960
$628.276
1,410
1.481
807.631
810.522
791,212
615,608

SAVINGS DEPOSITS
March 31, 1950
Number of

rel:~tg
City
Louisiana:
Shreveport .... ......
Tua:
BeAumont ........•. •
3
Dallas ..............
8
2
Elf... .. ...........
Fort Worth ..... . ....
4
Galveston ...... . .•..
4
Hou9ton . ..... . ..... .
8
Lubbock .......... ..
2
Port Arthur . .... ....
2
San Antonio ........ .
5
Waco ............ . ..
3
Wichita Falls ...... . .
3
AU other . .............
55
Total ........ .....

102

Number of
savings
depositors

Amouot of
8avinjts
depOSIta

Percentage cban~e in
savings deposits rom

Mar. 31,
1949

Feb. 28,
1960

43,771

$ 24,790,108

1.3

0.4

12,213
143.501
32.365
44.233
22,576
95.310
2,026
5,985
41,876
10,2M
8,192
66,518

6,891.730
22,962.206
36,nt.236
21.196.926
7U02.1U
3,851,811
4,430.630
43,818,404
10,367,766

6.6
0.5
0.5
1.7
0.5
1.7
24.1
5.5
3.0
2.0
1.1
3.2

-0.3
-0.03
0. 6
-0.03
0. 5
0 .2
4.4
1.0
0.1
0.4
0.5
0.3

528,880

$386,060,770

77,931~96

4,506~23

56,189,109

0.5

0.2

On April 7, the Secretary of the Treasury announced that
a new issue of 91-day Treasury bills in the amount of $1,000.000,000 would be offered to yield $100,000,000 in cash and
to refinance $900,000,000 of similar bills maturing April 13.
The offering represents the first new government borrowing,
exclusive of that in connection with net sales of Treasury tax
and savings notes and savings bonds, since September 1949,
On April 13, a similar announcement was made regarding the
bill maturity of April 20. Rates on new issues of Treasury bills
have shown a gradual tendency to advance during the year to
date, with the issue of April 20 selling at an average discount
of 1.162 percent,
With the satisfactory completion of its most recent refunding program-an offering of 1 Y4 -percen t notes in exchange for
1 Y4 -percent certificates which matured April 1 and an offering
of 1 Yz-percent notes in exchange for 1 Va-percent notes which
also matured on April I-the Treasury will not face another
maturity, with the exception of weekly bill maturities, until
June 1 when $5,000,000,000 in certificates become due.

The building boom in the Eleventh District was extended
further in March when construction contract awards totaled
$110,000,000, the highest level since the wartime peak of
October 1942. This amount was 62 percent more than in February and 72 percent more than the level of March a year ago.
Residential awards, which totaled nearly $48,000,000, were
only slightly under the all-time peak of May 1946, being 24
percent above the high level of February and 2.6 times
the total for March of last year. The month of March marks
the tenth consecutive month of high level awards in the residential category. During the first quarter of 1950, residential
awards exceeded by 13 5 percent the total for the corresponding
Deriod of 1949 and largely accounted for the fact that total
awards were up 57 percent. March awards were augmented by
the letting of contracts for a number of large residential pro;ects to be built for sale or rent. The low-cost housing program
continues to be the strongest factor in the residential building
picture, with continuing availability of mortgage creditboth from within and from outside the area- also being a sustaining influence. The temporary rationing of FHA insured
loans during March and April, resulting from the near exhaustion of maximum authorized insurance funds, may have
held up temporarily the letting of contracts for some sizable
residential projects during these months. Authorization of
additional funds for FHA insuring operations in the recently
passed Housing Act of 1950 will permit the resumption, on a
nonra tioned basis, of the insurance of housing mortgages.
VALUE OF CONSTRUCTION CONTRACTS AWARDED
(10 thousands of dollars)

March
March
1960
1949
Eleve.tb Diotrict-total... S110.447
$ 64~13
Reside.tial.... .. ......
47.878
18,207
All other..............
62,569
46,106
United Statcs·- tot&I.... . 1,300,201
747.619
Residential ..... . . .... .
574.681
251.770
All other.. .. .. .. .. .. ..
7U.520
495,849
·37 .tates east of the Rocky Mountains.
SOURCE: F. W. Dod.. Co.poration.

February
1960
$ 68,362
38,763
29,599
779,.130
361,452
418,078

January 1 to March 31
1960
$ 241,238
112,938
128,300
2,810,686
1,279,634
1,530,952

1949
$ 153.776
47,984
105,792
1,799,070
603,971
1,195,009

Nonresidential construction awards also increased in March,
reaching the highest level since July of last year, Such awards
totaled nearly $63,000,000, or more than double the level of

MONTHLY BUSINESS REVIEW

the previous month and 36 percent higher than in March a year
ago. Commercial, office, and manufacturing buildings contributed to the March total, while awards for highway construction, other public works, and utilities were also important.
During the first quarter of 1950, nonresidential awards were
running 21 percent above the level for the corresponding
period of last year.

of striltes, the decrease in the Nation amounting to 225,000
barrels per day as compared to the average level of the previous
month, with about two-thirds of the decrease taking place in
this District. Efforts were being made to divert crude oil from
the closed plants to other plants.

BUILDING PERMITS

RAILROAD COMMISSION OF TEXAS

OIL AND GAS DISTRICTS

Percentage
March 1950
Percentage change Jan. 1 to Mar. 31,1950 cha~e
valuation from
valuatIon
Number Valuation Mar. 1949 Feb. 1950 Number Valuation from 194!)

City
Louiaiana:

Shreveport . ...
Texas:

123

- 40

1.162

1 6.762.925

139

1.882.215
1.629.555
2.37•• 937
454.905
2.326.125
11.257.1 85
2.959.450
4.386.7SO
343.182
10.824.137
2.078,136
540.655
3.981.372
2.490.043
349.062

394
56
53
- 53
128
90
286
83
45
144
87
84
47
140

547
899
1.139
1.027
1.193
6.626
1.131
2.699

3.836.110

70
25
28

135
68

Total. ...... 10.725 149.999.397

Abilene . . .. . .
AmariUo.
Austin . .
Beaumont .. . . .

g:j: ~.b.r~t~:

EIP.... ..... .
l' or\ Worth .. ..
Galveston .. .
Houston .... .
Lubbock .... ..
POC't Arthur .. .
Sail Antonio .. .
Waco ..... ... .
Wichita Falla ..

40.5 '2.120.649
211
344
346
354
392
2.608
486
1.137
ISO
1.178
347
219
2.022
372
124

4.290.882

194
25

8.781.937
2.924.04.
60673.965
26.267.233
6.237.274
10.612.992
1.087.272
34.826.97'
4.946.246
1.491.353
13.066.700
6.914.040
820.204

99
62
184
83
- 48
145
141
76

26.570 1138.429.150

58
62
53
23
100
- 17
48

3.062
942
698
5.029
869
300

- 4
-10

85
1

266

I. SOUTH Ct:NT1V.L
I . "'IOOlt: 01,11..1

The daily average production of crude petroleum in the
Eleventh District during March amounted to 2,134,000 barrels, representing declines of 68,000 barrels from the preceding
month and of 245,000 barrels from a year ago. The United
States production outside of this District during March was
down 46,000 barrels daily from that in the previous month.
The increase of 130,000 barrels daily in T exas allowables for
April was reflected in increased production during the early
part of that month, and it is expected that the District output
for the full month may approximate that for last December.
In such case, the April output would exceed by about 100,000
barrels daily the production rate in April 1949, when allowabies had been sharply curtailed.
CRU DE Oil, PRODUCTION
(Barrels)

March 1950

Total
production

Dailyavg.
production

803.100
2 Middle Gulf. ..
3.682.050
10,344.050
3 Upper Gulf ..
~ Lower Gulf ......
••708.650
738.100
5 East Central . .. .
Northeast
.
.
...
10.207.600
6
East Texas ..
7.673.700
Other fields.
2.533.600
7b North Central
1.934.100
70 West Contral . .
1.545.200
16.638.200
8 We.t.. .....
4.030.350
9 North ........ .. .
2.766.350
10 Panhandle ...... .
58.297.750
Total TCUlJ .
New Mexico ...
3.055.000
North Louisiana ......... . . .
3.892.900
Totlll Eleventh District.
66.145.650
Out:.5ide Eleventh District . . . 84.362.400
United St.aLcs ... . ... _... . . 150,608.050

25.906
115.650
333.679
184.150
23.810
329.278
247.539
81 .739
62.390
49.845
536.716
130.011
89.237
1,880,572
127,581
125,577
2.133.730
2,721,368
4,855,098

."t.rea

Texas:

Dutrict
I South C.ntral .. .

Intre886 or decrease in daily
average production from
March 1949

February 1950

--1l62
- 23.769
- 73.796
- 20.131
- 18.063
-42.264
- 26.698
-15.666
1.545
2.868
-77.531
3.737
1.976
- 246.289
- 6.693
8.020
-244.962
-31.888

160
2.630
- 46.717
2.609
- 7.894
27.142
30.198
- 3.056
267

-276.850
SOURCE: EstimatOO frow American Petroleum Iustitute weekly reports.

177

-42.332
106
- 1
--62.953
-1.355
-4.033
-68.341
-46.020
-114.361

Largely as a result of the recent strength in demand, Texas
allowables for May were also increased, the 58,OOO-barrels-perday increment including 22,000 barrels daily of cold-test crude
for lubricating oil, the supply of which has been particularly
short.
Crude oil runs to refinery stills during March were slightly
larger than in February in both the District and the Nation. In
early April, however, refinery runs fen off sharply as the result

1. UPf'1!1I CUL'
.... LOW£III GUL'
a. [Mf ctNTItAL
• . IIOIIITltU5T
11. JrtOftTH ctll'TltAL
1.0. .!:Sr C[HlItAL

• . nST
.. NORTH
10. PANHAN(lt.[

The stock position of the petroleum industry was strengthened somewhat during March. Stocks of crude oil at the end
of the month were nearly 2,500,000 barrels below those a
month earlier, indicating that new supplies were still running
below requirements. Practically all of this stock reduction took
place in this District. Rising demand for gasoline held the increase in gasoline stocks to slightly less than 1,700,000 barrels
during March, as compared with about 10,000,000 barrels per
month during the immediately preceding months. However,
the moderate rise of gasoline stocks during March permitted the
establishment of another new record at nearly 135,600,000 barrels, or nearly 8,000,000 barrels higher than at the same time
last year. During the first week of April gasoline stocks were
drawn down 470,000 barrels, chiefly as a result of the 3 percent
decline in gasoline production due largely to the refinery strikes.
The seasonal rise in the demand for gasoline is likely to bring
about a steady decline in gasoline stocks during the next few
months, in line with the usual seasonal pattern. The influence
of demand in holding down or reducing stocks of petroleum
products has been amply illustrated during recent months,
when the strong demand for kerosene and fuel oils has led to
rapid drawing down of stocks of these products, with the decline during March amounting to nearly 29,000,000 barrels.
This was a much larger decrease than occurred during March
last year. On April 1 the combined stocks of the four principal
petroleum products-gasoline, kerosene, gas and distillate fuel
oil, and residual fuel oil-totaled nearly 227,600,000 barrels,
or over 27,200,000 barrels less than a year earlier. Stocks of
crude oil plus these four major products totaled nearly 470,700,000 barrels, representing decreases of nearly 30,000,000
barrels from a month earlier, and of slightly over 50,000,000
barrels from a year ago.
The estimated proved reserves of crude petroleum and natural gas liquids in the Eleventh District increased by 1,168,-

MONTHLY BUSINESS REVIEW

000,000 barrels during 1949, or over 7 percent, this increase
accounting for 75 percent of the 1,557,000,000-barrel increase
for the Nation. Texas, north Louisiana, and New Mexico, each,
had a percentage increase greater than the average for areas outside of the District. As of January 1, 1950, the District had
reserves of 16,871,000,000 barrels, or over 59 percent of the
national total of 28,378,000,000 barrels. The gain in proved
reserves during 1949 largely resulted from extensions and revisions of estimates for old fields, amounting to 1,455,000,000
barrels in the District and 2,592,000,000 barrels in the Nation.
New discoveries accounted for increases of reserves by 649,000,000 barrels in the District and 983,000,000 barrels in the
Nation. Production during the year drew upon these reserves
by 936,000,000 barrels in the District and 2,018,000,000 barrels in the Nation.
ESTIMATED PROVED RESERVES OF OIL AND GAS

Extensions

Reserves and New dis- Produo- Reserves
Jan. 1; revisions coveriee
tiOll
Jan. I,
1949

in 10(9

in 1949

in 1940

[960

Cbanges in
reserves

counted for nearly two- thirds of the extensions and revisions in
the District and over one-third of those for the Nation. In fact,
the gain in the Scurry field equals 82 percent of the net increase
in reserves in Texas during 1949, as well as 77 percent of the
net rise for the District and 58 percent of the net increase for
the Nation. It is expected that the Scurry field will account
for a further increase of estimated reserves during 1950.
Estimated proved reserves of natural gas rose during 1949 by
6,806 billion cubic feet, or over 5 percent, in three states in the
Eleventh District- Texas, Louisiana, and New Mexico. Outside
of the District there was a small decline in reserves, so that the
national total increased by only 6,512 billion cubic feet, or
less than 4 percent. The three states producing natural gas in
this District had total reserves of 132,099 billion cubic feet on
January 1, 1950, and accounted for 73 percent of the national
total of 180,381 billion cubic feet. Extensions and revisions in
the District during 1949 slightly more than equaled the net increase of reserves, with new discoveries being fully offset by
production during the year.

Amount Percent

Crude petroleum and

=~~
~: ~=8 <:r
barrelo)

DOMESTIC CONSUMPTION AND STOCKS OF COTTON
14,5S~

20
42

832
&3
61

1~,6M

1,455

849

938

18,871

1,188

7.4 .

1,137
2,692

334
983

1,082
2,018

11,607
28,378

38\1
1,667

8.8

Te18.9 . ........•....
North Louisiaoa® .. .
New Mexico ........
Total Eleventh
District . . ••.•.•

632

60
65

1~,703

Outside Eleventb
Di8trict ••..... ...
United States ... ....

11,118
26,821

~[2

1,34ll

587

&39
878

1.005

7.6

7.3

(Bal..)

~.8

3.~

Natural gas (amountll
in billions of cubic feet)
2,522
Texa8, .. . ......... . 95,709
3,963
3,024
99,170
3.6
3.461
Louisiana·· .. .-.... .. 23.978
1,277
2,239
806 26.888
2,710
11 .3
8,606
New Mexico ... .....
739
H6
2.\7
6,241'
&36
11.3
Total Eleventh
District . ....... [2.\,393
3,~5
4,087 132,099·
8.941
6.808
6.4
Outside Eleventh
1,[20
District. ... . ..... 48,576
868
2.168
48.2821 - 294
-0.6
United States .... ... 173,869
4.613
8.06\
6.246 180,38['1 6.512
3.7
® Preliminary,
·Includes 1 billion cubic: feet added to underground storage in New Mexico.
, IDCludes 76 billion cubic fcet. added to underground etor~Old.aide the Eleventh Di:Jtrict •
•• Includes BOUth Louisiana, which is outaide the Eleventh . met.
SOURCES: American Gas As&ociatioo.
American Petroleum Institute.

Estimated reserves in the Scurry County Reef field in Texas
were increased by about 900,000,000 barrels. This increase ac-

March1950

M....b
=c-=-__::-__
_
Last season
Augus~

Mareb
1949

Consumption at:
Texas mills..... . . . . . . .
United State. miU,.....

15.090
898,228

U. S. Stocks - end of month:
In consuming cstabm'ta. 1,881,498
Public IJtorage and comor...................

8,302.176

13,269
72[,378

1 [0

FebruarYI
1950
ThQ !ea30D
11,966
739.438

1,660,787

1,825,791

8,682.706

9,228,737

103 ,3 16

102,136

5.977.391

!,661,349

• Five weela ended April 1.

t Four weeD ended February 25.

The daily average rate of consumption of cotton at United
States mills during March was 3 percent lower than in the
previous month but 14 percent above the level of a year earlier.
Since the March cotton consumption report covers 5 full weeks,
the March total is artificially inflated compared with the totals
for the earlier periods given in the adjoining table. Total consumption during the first 8 months of the 1949-50 season was
7 percent more than during the previous season.

Full text of Review (Federal Reserve Bank of Dallas) : May 1, 1950

FRASER