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MONGJ'HLG)(
REVIEW
FEDERAL
Vol. 38, No.5
RES E R V E
BANK
o
F
DALLA S
DALLAS, TEXAS
May 1,1953
THE TRANSITION TO FREE MARKETS
On April 13, 1953, Wm. McC. Martin, Jr., Chairman, Board of Governors of
the Federal Reserve System, addressed The Economic Club of Detroit on the sub ject
"The Transition to Free Markets." In the belief that readers in banking, business, and
other fields of economic activity in the Eleventh Federal Reserve District will find
Chairman Martin's remarks of interest, his address is reprinted in full in the following
pages of this isme of the Mo nt.hly Business R eview.
On behalf of the Federal Reserve System, ] wish to express
appreciation of the honor you do me in inviting me to be
your guest at this luncheon of The Economic Club of Detroit
which you are giving in connection with the dedication of
the new Detroit Branch Building.
It seemed to me that this might be an appropriate time and
occasion to comment on the part that the Federal Reserve
System was designed to play in the economic life of our
country. In particular, I would like to say something about
the progress that has been made in the past two years in
what, for want of better words, J have referred to as the
transition to free markets.
It is not strictly true, of course, that in our complex world
we can have absolute freedom in human affairs. The goal of
the greatest good for the greatest number requires as a
minimum a Government of laws, and, human nature being
what it is, that meallS some regulation of our daily lives.
There is this minimum in monetary management. Nevertheless, the aspiration remains to have as much freedom of
choice and action as is compatible with the common good.
This is true in economic as in other affairs.
~
,
Under the hard choices left us in wartime, we had to
dictate even some of the smallest details of our economic
life, but that strait jacketing of the economy is wholly in consistent with democratic institutions and a private enterprise system. It produced the paradox that we seemed to
be practicing the very thing we were fighting against. The
Federal Reserve System was caught in tltis paradox under
the wartime decisions. It undertook to stabilize the price of
Government securities in relation to a fixed pattern of yields,
and in so doing found itself feeding the forces that make
for inflation. ] t con tin ued to stabilize these prices, with
minor modifications, after the war, in fact up to March
1951. These are facts. I am not passing judgment on what
was done.
Last month marked the second anniversary of the so-called
Treasury-Federal Reserve accord. It may be worth while to
recall the wording of the joint statement:
"The Treasury and the Federal Reserve System",
said the announcement, "have reached full accord with
respect to debt management and monetary policies to
be pursued in furthering their common purpose to assure
the successful financing of the Government's requirements and, at the same time, to minimize monetization
of the public debt."
In monetary history the accord was a landmark. In withdrawing from supporting fixed prices in the Government
bond market, the Federal Reserve System regained its influence over the volume of money. It ceased to be the residual
buyer who, by its purchases of Government securities, however reluctantly made, furnished bank reserves indiscriminately and thus abetted inflationary overexpansion of the
money supply.
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
62
MONTHLY BUSINESS REVIEW
During its 40 years of existence, the Federal Reserve
System has frequently tried to formulate or define its purposes in the light of the responsibility for monetary management which Congress placed upon it_ The System is, and
always must be, subject to the will of the Congress. Through
their elected representatives it is thus ultimately answerable
to the American people.
The Federal Reserve Act contains guidance for policy
and action rather than directives or a mandate. While the
Reserve System does not have an explicit mandate in the
law, it is governed in its decisions by a definite purpose which
can be simply stated. Its purpose is to see that, so far as its
policies are a controlling factor, the supply of money is
neither so large as to induce destructive inflationary forces
nor so small as to stifle our great and growing economy.
It is fair to say, I think, that the System has performed
that task fairly satisfactorily during the past two years.
During that period the economy has functioned at record
levels and despite the diversion of economic resources to the
defense program, it has functioned without further inflation.
However precarious the balance, it has been a period of
steady economic progress. It would be a mistake to claim
too much for monetary policy in this achievement. But it
would be equally misleading to conclude that this steady pro·
gress would have been achieved without the aid of the
monetary policies and actions that were initiated two years
ago.
What has occurred in the past two years in the area of
money management has been a return from wartime necessities to the principles of the free market. The significance of
this transition is not to be found in interest rates, but in its
far greater implications, wholly apart from its economic
effects. In a free market, rates can go down as well as up
and thus perform their proper function in the price mechanism. Dictated money rates breed dictated prices all across
the board. This is characteristic of dictatorships. It is regimentation. It is not compatible with our institutions.
Not only in this country but in the entire Western World,
we are seeing a return to the principles upon which our
strength rests. Under our Governmental institutions and
our economic system, the maximum benefits for all of us
flow from utilizing private property, free, competitive enterprise, and the profit motive in accordance with the dictates
of the market place-something that was ahnost forgotten
for a period of years.
The market place-the price mechanism-are basic essentials of the American economy and of the economy of
the Western World. We have seen the countries of Europe
that struggled along with Marshall Plan aid return to the
earning process, one by one. We have seen monetary policy
put to work in Belgium and Italy. We have seen it spread
from Italy up to the Netherlands, on to Denmark, and on
to Britain. For the last year Britain has been taking measures
running somewhat parallel to ours.
~
The process of returning to acceptance and use of the
market place is slow, painful, and hard. It is not achieved
because people necessarily like it; it is achieved hecause
alternative ways don't work-and that has been found out
in most of Western Europe since the war.
When we started this program of freeing the market some
people were talking as if that would lead to panic and dis·
aster. Some said that once Government bonds went below
par the credit of the United States would be destroyed. Some
people saw panic and collapse on the horizon merely because
there had been a movement of a few thirty·seconds in the
Government securities market. The word "stability" had
come to mean "stagnation" and "frozen prices".
During the past year, under the authority of the Federal
Open Market Committee, an ad hoc subcommittee has been
reviewing our operations in the Government securities mar·
ket with a view to determining what might be done to de·
velop and improve those operations under the changed ~
conditions.
~
After ten years of a pegged market, we found that once
the market was freed a little bit, many of the devices and
techniques we had been using tended to work in reverse. We
found that the dealers, the brokers, the individuals- that
composite that makes up the market-instead of making
market judgments for themselves were chiefly interested in
trying to find out what the Federal Reserve planned to do
and how it was going to operate.
Federal Reserve support of the Government securities
market over many years, because it affected the operation
of the entire financial market, had developed patterns of
behavior and thinking that were not easily or quickly
changed. Only gradually were old practices discarded and
the characteristics of a free market developed.
That is not to say that the performance of the Government
securities market after the unpegging was not highly grati.
fying in several important respects. Considering the pressure
on the economy and on the supply of savings, the range of
price JIuctuation on Government issues was moderate. The
facilities of the market proved to be generally good.
But the market did not have the depth, breadth, and resiliency needed for the execution of effective and responsive
market operations and for flexible debt management pur-
4
MONTHLY BUSINESS REVIEW
poses. This means a securities market in which market forces
of supply and demand and of savings and investment are
permitted to express themselves in market prices and yields.
The unsatisfactory aspccts of the market seemed to be related in large part to the psychology that pervaded the
market. Professional operators in the market appeared confused with respect to the elements they should consider in
evaluating future market trends.
For one thing, they seemed apprehensive as to the Federal
Reserve attitude on prices in the market. The market appeared constantly to expect action by the System which, by
standards of a free market, would be unpredictable and
might seem capricious. Investors and dealers seemed to lack
adequate background for weighing and evaluating System
actions in forming their individual market judgments and
investment decisions. After the unpegging there quite naturally remained much skepticism as to the System's intentions
or ability to permit a free private market to develop.
•
~
,
In important respects there was tangible justification for
these doubts. For one thing, the System continued to support
the markct for short·term securities during periods of Treasury refunding. For another thing, it was also understood
that the System had a policy of maintaining an orderly
market in all sectors of the Government securities market,
a phrase that was variously interpreted in the market and
which the market therefore found hard to understand.
Against that background, it was our purpose to develop
methods of operation which, as they became known through
practice, would give those who participate in the market,
and those who have contacts in the market, a familiarity
with how the Federal Reserve may intervene, when it may
intervene, for what purpose it may intervene.
63
This practice was followed for eighteen months after the
accord.
We found, however, that when the Federal Reserve, with
its huge portfolio and its virtually unlimited resources, intervened in the market during Treasury refundings, many
other investors tended to step to the sidelines and to let
the market form around the System's hids. This was a natural
and highly rational investor reaction. But the result was
that with the System supporting a refunding, offerings failed
to get fair market valuation until some time after the refunding period. Under the circumstances, it was very difficult
for the market to make a satisfactory judgment of the worth
of a new offering or of the relationship it should bear to
other Government obligations already outstanding. This was
particularly true since it was usually obvious to investors
that the System might act to absorb reserves by sales during
or after the refunding operation in order to offset its support
purchases.
During the past two transition years, the Treasury and the
Federal Reserve have been experimenting with various ways
of minimizing or eliminating this intervention. In connection with a small refunding, the Federal Reserve decided
last December to refrain entirely from purchasing maturing
securities, or "rights" as they are called. Again in February,
when the Treasury refinanced a large maturity with an attractive offer no support was given by the System. Both
refundings were highly successful and demonstrated the
value of reliance on freely functioning markets rather than
on official intervention.
Since the UIlpegging, we have endeavored to confine open
market transactions to the effectuation of credit policy, that
is, to maintain a volume of member hank reserves consistent
with the needs of a growing and stahle economy. We have
tried to confine our operations to short· term securities, in
practice largely Treasury bills. Prices of these issues, which
are the closest substitutes for cash, are least affected by
Reserve System sales or purchases. Gradually investors in
Government securities have, I believe, come to expect and
understand this phase of System activity in the market.
The transition has major advantages to the System, to
the Treasury, and to investors in general. The System no
longer needs to inject periodically into credit markets large
amounts of reserve funds which are difficult to withdraw
before they have resulted in undesirable credit developments.
On the other hand, private investors, whose funds the Govcrnment seeks to attract, may now fairly appraise a new
Government security offering through market processes. They
may invest in the new issue with confidence that its market
price reflects not just an arbitrary decision by the Treasury
and the Federal Open Market Committee but instead the
composite evaluation of its worth by thousands of investors
in the light of their judgments as to the current and prospective demand and supply of credit.
We have had a particularly acute problem during periods
of Treasury refundings. It had become the practice under
pegged and supported markets for the System to intervene
to support Treasury refundings. This seemed a reasonahle
use of Federal Reserve resources, provided it was limited
and excessive purchases were later disposed of in the market.
We also had to deal with the concept of "maintaining an
orderly market". I tried before committees of the Congress
to define "orderly market". I was not very successful, hut I
do think that gradually our emphasis has been shifting toward a realization that we should not he the judges of what
an orderly market is; that our efforts should be directed
64
MONTHLY BUSINESS REVIEW
more toward correcting disorderly conditions-you can see
the difference in emphasis-and that even there, we ought to
be extremely careful about intervening unduly.
In a properly functioning market, and particularly in a
well orgll.nized money and credit market, fluctuations resulting from temporary or technical developments are self-correcting without any official intervention. Of the movements
that are not self-correcting, most reflect basic changes in
the credit outlook which should be permitted to occur. Only
very rarely is there likely to be a disorderly situation that
would require Federal Reserve intervention for reasons other
than credit policy.
As investors continue to operate in a free market for Government securities I am confident that they will develop a
fuller understanding of the minimum role to be played by
the System in such a market. They will then feel freer to
express their own judgments about market values and will
thus develop a market with greater depth, breadth, and
resiliency. Certainly much progress has already been made.
With the changes in its own policies and practices and
with the development over the past two years of this self·
reliant market for Government securities, the Federal Reserve
has been able to bring into full use its instruments for influencing the general credit situation in order to promote
economic and financial stability. Open market operations and
the discount rate are again being used for this purpose as
t""in reserve banking measures, each complementing the
other in affecting the avaHabHity, volume, and cost of credit.
Primary reliance is once more placed upon the discount
mechanism as a means for suppl}ing the variable shortterm needs of individual banks for reserves. Experience has
demonstrated that when member banks are heavily in debt
to the Federal Reserve Banks, the tone of the money market
is tight. Marginal loans are more likely to be deferred and
some credit risks may have to shop around for accommodation. Conversely, when member bank borrowing is low,
the tone of the money market tends to be easy and credit
accommodation is less discriminating. The Federal Reserve
borrowing privilege and the discount rate, after years of
disuse, have come to play once more their intended role
as flexible, impersonal instruments of monetary management.
Open market operations can be employed when needed to
condition the current tone in credit markets and the general
availability of credit. By these operations the Federal Reserve
can tighten or easc the pressure on member bank reserve
positions and thus cause banks to borrow or enable them
to reduce borrowings at the Reserve Banks. Subsequently,
this tightness or ease is transmitted and magnified in money
and credit markets.
I have sought to outline for you the progress that the
Federal Reserve System, within the framework of its purposes and functions, has made in these past two years of
transition. With credit and monetary measures in effective
operation, and with a Federal fiscal situation that does not
depend excessively on credit to finance expenditures, reasonable stability in the value of the dollar is again a valid
assumption in making economic decisions.
This is in sharp contrast to the era of pegged markets
from which we have emerged. There are still some who
would have us return to a pegged market. If we did, we
would have no reliable safeguard against the erosion of our
savings, our pensions, our life insurance policies- the capital
upon which the institutions of private enterprise rest. There
are no reliable substitutes for free markets which have been
reinstated during the past two years. A redundant money
supply can be dammed up by direct controls for a time, but
as we saw in the early postwar years, once the controls are
lifted, as the public insists that they be in peacetime, the
economy is engulfed with the flood of money that has already
been created and only temporarily held back.
If we handle our fiscal, monetary, and debt management
problems wisely we will not have to worry very much about
the value of the dollar.
65
MONTHLY BUSINESS REVIEW
REVIEW OF BUSINESS, AGRICULTURAL, AND
Department store sa les in the
Eleventh Federal Reserve District in
March set a record for the month,
being 26 percen t above those in February and 12 percent above March
1952. The ea rlier Easter this year contributed to the high
sales volume for the month. Sales in April through the 18th
were 6 percent above a year earlier.
Sales of durables at reporting department stores in March,
accounting for 17 percent of total sales, rose 14 percent
above March 1952; sales of nondurables gained 11 percent. The proportion of total sales represented by cash
transactions declined, with the loss being offset by a relative
increase in instahnent sales. As compared with a year earlier,
accounts receivable at the close of Marcb were up 26
percent; inventories, up 8 percent; and stocks on order, up
4 percent. Furniture store sales in March gained 12 percent
over February and 5 percent over a year ago.
FINANCIAL CONDITIONS
Loans increased less than 1 percent during the 5-week period
to a total 14.2 percent above a year earlier. Gross demand
deposits of all member banks in the District in March averaged slightly below the previous month but 5 percent over
a year earlier; time deposits rose 2.6 percent during the
month.
Retail sales at reporting department stores in the Eleventh Federal
Reserve District set a new dollar
volume record for the month of
March, rising 26 percent above February and 12 percent above March 1952. Although sales
were up substantially during the second half of tbe month
because of the earlier date of Easter, it was apparent in early
March that sales for the month would be sustained well above
the 1952 level.
RETAIL TRADE STATISTICS
IPercentag. chong.)
Agricultural conditions have improved in the past several
months because of widespread rains, but more moisture is
needed in western parts of the area. The winter wheat crop
in district states is off one· third from last year. Cotton planting is active in northern counties of the District, and land
preparation is moving along in west Texas. Livestock marketings continue heavy. Farm commodity prices are holding
relatively steady, although prices of cattle, cotton, and grains
weakened in recent weeks.
NET SALES
Employment in the District declined slightly in February
but made seasonal gains during March and April. Reports
for February show nonagricultural employment 4 percent
over a year ago, with manufacturing employment up 5 percent. Hourly earnings of manufacturing employees averaged
$1.60, up 10 cents from a year carlier.
The value of construction contracts awarded in the District in March dropped below that of several preceding
months, due to a rcduction in nonresidential awards; residential awards continued at a very high level. Construction
contracts awarded in the first quarter were valued 3 percent
below those of a year earlier, compared with a gain of 10
percent for the United States.
Demand deposits of the weekly reporting member banks
declin ed 2.0 percent between March 18 and April 22 ; time
deposits rose 3.5 percent. Deposit withdrawals were met, in
part, through a reduction of 4.5 percent in total investments.
March 1953 from
Mcuch
Feb.
3 mo. 1953
compo with
March
Feb.
1952
1953
3
1952
1953
12
25
9
15
6
16
10
13
11
8
26
39
19
17
24
31
27
32
29
28
8
28
5
9
5
11
8
12
9
10
8
14
3
7
9
10
8
9
10
12
5
13
21
Dallas ..... . .. • . ... . . ......• .. .
11
Houston ••••••••••••••• •• ••• • •••
2
Port Arthur ••......•.•.•....••••
Son Antonio ••••.•.•...••••••••• -14
2
5hreYeport, lo ...................
12
_6
21
21
9
10
_5
5
-I
5
9
6
-27
3
-I
3
Line of trade
by area
DEPARTMB'-IT STORES
Total Eleventh District ••.•.•. •. .•.•
~~,fo~: ~.h~~S~i:: ::::::::::: ::::::
EI PQsQ . •. •. •.•... . .• .. ••.•.. . •
Fort Worth •••.•••. . .•. •. •...•.•
Houston ••.•••.•••••••••••••••• •
San Antonio •••• • • •••• .• •• ••. •..
Shreveport, La .... ... , •.... ... . ..
Daily average crude oil production in the District declined
during April to the lowest level since last July. Crude oil
stocks declined during early April but were higher than a
year ago. Refinery activity registered little change during
March and the first part of April; there was a year-to-year
gain of 3 percent in the first 3 weeks of April. Well completions for the year through April 11 were 9 percent below
a year earlier.
STOCKSl
Mareh 1953 from
Waco • .• ..••..••••••.•....... .
Other cities .... . . ... .. ......... .
fURNITURE STORES
Toto I Eleventh District ••.•. . •. • ••••
Austin .••...•...•.. . ... .. . •• •• •
HOUSEHOLD APPliANCE STORES
Totol Eleventh District ....... . .. ...
Dalle s•.•••.•.....•.•... .. •. .. •
2
- 3
-I
mo.
1952
8
18
5
13
3
12
5
11
6
5
3
-8
, Sto,ks ot end of month.
Using the 2 weeks prior to Easter as the basis for comparison, Easter sales tllis year were 10 percent greater than
in 1952. Sales declined sharply during the week following
Easter but then recovered to raise April sales through the
18th to a level approximately 6 percent above the comparable
period last year. Cumulative department store sales in trus
District for the year through April 18 were 8 percent above
1952, compared with 5 percent for the Nation.
Sales of durable goods (homefurnishings) during March,
which accounted for approximately 17 percent of total department store sales, rose 14 percent above March 1952. The
principal items accounting for the increase were furniture
and bedding, up 19 percent; laundry equipment, up 61 percent; and air conditioning units, up 216 percent.
Sales of nondurables during March were 11 percent
greater than a year earlier. The principal increases in non-
66
MONTHLY BUSINESS REVIEW
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
11947·49
= 100)
UNADJUSTED
Area
Jan.
Mar.
1953 1953 1952
Feb. Jon. Mar.
1953 1953 1953 1952
101
101
112
101
9B
115
105
102
116
125
115
144
125
119
143
129
127
148
115
lOB
129
142p 132
122
131
134p
133
135
124
SALES-Daily overage
Seventh District ... ... ... .• 117
Dallas .................. •
Houston •• •• • ••• • •••••••• •
STOCKS-End of month
Eleventh District ..•.• . . . •.•
ADJUSTEDI
Feb.
Mar.
1953
112
135
Mar.
I Adjusted for seasonal variation.
p-Preliminary.
durables were women's and misses' accessories, which
showed a gain of 15 percent; dresses, 17 percent; blouses,
skirts, and sportswear, 20 percent; and girls' wear, 37 per·
cent. Sales of men's furnishings and boys' wear registered
gains of 11 percent and 38 percent, respectively.
The proportion of total sales represented by merchandise
sold for cash during March was 32 percent, a decline of 2
percentage jloints from March 1952. The proportion of instal·
ment sales rose 2 percentage points to 13 percent, while reg·
ular charge account sales remained unchanged at 55 percent
of total sales.
WHOLESALE TRADE STATISTICS
Eleventh Federal Reserve District
(Percentage change)
Department store inventories at the end of March were
8 percent larger than a year ago, reflecting the heavy pur·
chases made earlier in anticipation of Easter buying and
the current high level of consumer demand. Stocks on hand
during the first quarter of this year have been the largest
on record for that period. Stocks on order at the end of
March were 4 percent larger than on the same date last year.
Furniture stores in the District reported retail sales duro
ing March at 12 percent above February and 5 percent
above March 1952. Accounts receivable held by furniture
stores at the cnd of the month were unchanged from Feb·
ruary, due to a 4'percent increase in the volume of collections, but were up 27 percent from a year ago. Inventories
at furniture stores at the close of March were 5 percent
higher than on February 28 but were 5 percent below a
year earlier.
The 1953 winter wheat crop in
the states lying wholly or partly in
this District is forecast at 96,240,.
000 bushels, 23 percent above the
preseason forecast made last Decem·
ber but one· third lower than actual production in 1952.
Estimates of production in each of these states are shown
in an accompanying table. In the Nation, IDnter wheat production is forecast at 714,000,000 bushels, compared with
1,053,000,000 bushels harvested last year and a 10·year
(1942·51) average of 797,000,000 bushels.
STOCKst p
NET SAlESp
March 1953 from
WINTER WHEAT PRODUCTION
March 1953 from
3 mo. 1953
March
Line of trade
Automotive supplies •••••••.•
Drugs and sundries • •..• . • • ..
Dry goods • .•....... ••.••.•
Grocery (voluntary group and
full·line who.Jesalers not
sponsoring groups).... .•. •
Hardware .................
Industrial supplies ... .• . . " ..
Machinery equipment except
electrical .•... .. ..•.•••. .
Metals •••....••.•..•..•...
Tabacco produch ...........
Wines and liquors ..•.......
Wiring supplies, construction
materials distributors ......
1952
(In thousands of bushels]
February
compo with
March
Fe brl,lOry
1953
3 mao 1952
1952
1953
5
- I
17
- I
-2
-3
-6
-2
1
-1
-1
3
29
6
-5
10
-3B
3
12
4
5
-9
3
13
10
•
,
1953
17
-3
3
-9
3
45
3
-10
14
-4
1
13
14
-22
27
23
-16
22
-1
25
3
-2
Stocks at end of month.
p-Preliminary.
; Indicates chonge of less than one · half of 1 percent.
SOURCE: United Stotes Bureau of the Census.
1
Total accounts receivable at the close of March were vir·
tually unchanged from February but were 26 percent above
March of last year. Regular charge accounts, which repre·
sented 54 percent of total receivables on March 31, showed
a decline of 2 percent during the month but remained 9
percent above a year earlier. Instalment accounts, which
represented the remaining 46 percent of total receivables,
increased 1 percent during the month and were 55 percent
higher than on the same date last year.
Collections on charge accounts during March equaled 49
percent of the amount outstanding at the beginning of the
month. There was a contraction of the average collection
period on charge accounts from 66 days in February to 61
days during March.
Average
Stote
Arizona .... .... . .. .. ...... .. ..•.. ... .•. .
New Mexico . ........ .... . . .. ..... .... • ..
Oklahoma ..•....... .. .. .. . ............ . .
Texas ...... .. .............. . .......... .
194 2·51
1952
589
3,542
59B
627
70,810
107,115
59,088
34,626
Indicated
April 1
552
2,444
63,11B
30,126
SOURCE: United States Deportment of Agriculture.
The increase in the forecast of the District's winter wheat
crop reflects an improvement in moisture conditions and
the seeding of additional acreage following fairly substantial
rains in December and early January. During February and
March, light snow and rain kept most of the wheat alive,
although some acreage was lost in New Mexico, northwest
Texas, and western Oklahoma because of high winds. Sub·
soil moisture is deficient throughout most of these areas,
and final outcome of the winter wheat crop is highly depend.
ent upon additional rains. In most of the Low Rolling Plains
and north central counties of Texas, the wheat crop is in
good to excellent condition.
Moisture conditions in central and eastern parts of the
District are generally favorable and, in many counties, much
improved over a year ago. However, irrigation water con·
tinues short in the Lower Rio Grande Valley of Texas and
in parts of Arizona aud New Mexico.
Cotton planting is active in northern counties and in the
irrigated sections of New Mexico and Arizona. Preparations
4
~
MONTHLY BUSINESS REVIEW
for planting are making good progress in west Texas. The
crop is malcing fair to rapid growth in southern counties,
and insect infestation has been light thus far.
The District's corn crop is malcing fairly good growth,
and grain sorghums in the Coastal Bend commercial area
of Texas are reported to be developing satisfactorily. Rice
planting was active during April in the Texas·Louisiana rice
belt, and total acreage is expected to equal or exceed last
year's plantings. The south Texas Aax crop is maturing, and
harvest was begun in the Coastal Bend section around mid·
April.
Conditions were generally favorable during April in most
commercial vegetable areas, and farmers harvested the few
remaining winter crops. Carlot shipments of tomatoes and
a light movement of sweet corn were under way in the
Lower Rio Grande Valley during the middle and latter parts
of the month. Setting of the east Texas tomato crop and
planting of sweet corn, cantaloupes, and watermelons in late
areas of south Texas and of onions in the Panhandle were
completed under generally favorable condi tions. In contrast
to the very small Texas peach crops of the past 2 years,
prospects are very good this year. Low temperatures during
the week of April 15 caused some loss in the High Plains,
but other sections escaped damage.
Range and pasture conclitions are much improved over
a month ago and, in most sections, are better than at this
season last year. The United States Department of Agriculture reported pasture conditions in Texas on April 1 as
being about 30 percent better than on the same date in 1952.
However, pastures in the western half of Texas and southeastern New Mexico still need more moisture; supplemental
feeding continues in those areas on a limited scale. In the
eastern half of the District, grasses and clovers have made
abundant growth and are furnishing ample pasturage.
67
FARM COMMODITY PRICES
Top Prices PaId in local Sauthwest Markets
Commodity and market
COTTON, Middling 15/16-IMh, Dallas ••••.
WHEAT, No.1 hard, Fort Worth ••••••••••
OATS, No.2 white, Fort Worth ••••••.•..•
CORN, No.2 yellow, Fort Worth •• •...•.•
SORGHUMS, No.2 yellow milo, Fort Worth.
HOGS, Choice, Fort Worth .....•........
SLAUGHTER STEERS, Choice, Fort Worth •..
SLAUGHTER CALVES, Choice, Fort Worth...
STOCKER STEERS, Choice, Fort Worth ..• . •
SHO RN SLAUGHTER LAMBS, Choice, Fort
Worth •.•. • .......... •• ••• ••• •• ••• •
HENS, 3-4 pounds, Fort Worth ..........•
fRYERS, Commercial, Fort Worth . •.......•
BROILERS, south Texos ..................
WOOL, 12-mOl'lths, west Tello ••• •.•••.•.•
MO HAIR, kid, west Texo •.•. ••.... .• • . .•
1
Comparable Comparable
week
Week ended
wee"
Apri123,1953
last month
lost year
Unit
lb.
bu.
bu.
bu.
owl.
owl.
owl.
cwt.
cwt.
cwt.
lb.
lb.
lb.
lb.
lb.
$
.3265
2.60%
1.02
$
.3295
$
.4075
2.68
2.74~
1.0SYl
1.13Yl
2.1214
1.87
1.88
2.93
24.00
21.50
22.00
19.00
3.13
22.25
23.00
23.00
22.00
3.20
18.00
36.00
34.50
35.00
21.00
.25
.29
.29
.67
1.26!h
21.00
.25
.29
.30
27.00
.23
.27
.25
11 .70
L161h
11.55
1.06Yl
Cleon basis. delivered Boston.
Prices received for agricpltural commodities in this District remained generally steady during the past 2 months,
although prices of cotton and grains have weakened slightly
and cattle prices fluctuated within relatively narrow limits.
The index of agricultural prices in Texas, prepared by the
Bureau of Agricultural Economics, declined one point between February 15 and mid.March, or to 286 percent of the
1910-14 average. Spot commodity market quotations to
April 15 suggest that the index for that date, when released,
will show a further slight decline, which would place farm
commoclity prices in the State some 20 percent below a
year ago.
NORTHERN
HIGH PLAINS
Livestock generally are holding their own in western sections of the District and are making rapid gains in eastern
and central counties. Marketing of cattle and calves con·
tinues to exceed the volume of a year ago by a substantial
margin. Receipts at the Forth Worth and San Antonio markets during March were 50 percent higher than a year
earlier and 32 percent above February this year.
LIVESTOCK RECEIPTS
(Number)
FORT WORTH MARKET
Class
1953
March
1952
Co"le .... ... . .
57,682
12,344
59,803
73,209
27,484
9,358
93,792
43,459
March
Calves .• .•. . •• •
Hogs ........• •
Sheep ........ .
1
SAN ANTONIO MARKET
FebrlKlry
March
1953
1953
42,874
11,112
25,296
50,109
3,929
1) 5,838
43,008
12,102
March
1952
February
20,882
13,746
5,250
18,836
8,814
1,773
110,431
1953
CROP REPORTING
DISTRICTS OF TEXAS
11 1,257
Includes goats.
The number of cattle On feed in the 11 Corn Belt states
on April 1 was reported by the Bureau of Agricultural Eco·
nomics to be 19 percent higher than on the same date last
year. This is a smaller increase over a year ago than the 23percent gain reported on January 1, 1953, and the reduction
is attributed to lower cattle prices.
Demand deposits of the weekly
reporting member banks in the District declined rather sharply between March 18 and April 22, although the decline was somewhat
less than during the comparable 5-week period last year.
Decreases in most major categories of demand deposits were
MONTHLY BUSINESS REVIEW
68
reflected in an over-all reduction of 875,695,000, or 2.0 percent. The heavier withdrawals occurred principally in deposits of banks, states and political subdivisions, and individuals and businesses_ United States Government deposits also
declined. These losses reflect, in part, a substantial outflow
of funds in connection with interdistrict commercial and
financial transactions_ In contrast with the recent trend of
demand deposits, time deposits rose $18,638,000, or 3.5
percent, in the 5 weeks ended April 22, reflecting an expansion in the accounts of individuals, partnerships, and corporations and in deposits of states and political subdivisions.
Gross demand deposits of all member banks in the District averaged $6,822,777,000 during March, reflecting a
slight decrease from February but an increase of almost 5
percent over March 1952. Demand deposits of country member banks declined 1.5 percent during the month, a reduction
which more than offset the expansion of somewhat less than
1 percent at reserve city member banks. Reflecting a further
extension of the sustained upward trend which had prevailed
since early in 1951, time deposits rose 2.6 percent during
March to a lotal of $829,712,000 on a daily average basis_
f
GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
Deposit withdrawals during the 5-week period were met
principally through a reduction of $61,974,000, or 4_5 percent, of total investments. Holdings of all types of United
States Government securities declined, with the more notable
changes occurring in Treasury bills and notes. Investments
in municipal and other non-Government securities rose. On
April 22, total investments of these banks amounted to
$1,313,684,000, a reduction of 2.7 percent from the total
reported on the comparable date in 1952_
Loans of the weekly reporting member banks increased
$10,006,000, or somewhat less that 1 percent, during the 5
weeks ended April 22. "All other" loans, a category wbich
includes consumer-type loans, and loans to banks more than
accounted for the total expansion. Commercial, industrial,
and agricultural loans declined fractionally. Commodity dealers, manufacturers of food and liquor, and grain and milling
concerns reduced outstanding bank indebtedness during most
weeks. On the other hand, manufacturers of petroleum products, wholesale and retail trade establishments, sales finance
companies, and a group of other miscellaneous borrowers increased the amount of their outstanding bank borrowings.
On April 22, loans of these banks amounted to $1,807,815,000, or 14.2 percent above the total for the comparable date
last year.
Eleventh Federal Re serve Di strict
(Averages of doily flgure •. In thousand. of dollan)
COM81NED TOTAL
Date
Gross
demand
Ma rc:h 1951 .. ... $5.991 ,"39
Ma rch 1952 .... . 6,513.810
November 1952 .. 7,025,207
December 1952 .. 7.090.304
January 1953 . .. . 7 . 109.1~5
February 1953 .. . 6,850.152
Mc"h 1953 ..... 6,822,777
Eleventh Federal Reserve Distri ct
(In thousands of dollars)
Item
April 22,
1953
April 23,
1952
March 18,
$3,173,467
1,807,815
$2,932,777
1,566,459
1,582,878
1,183,395
10,937
1,084,136
7,760
1,186,815
10,627
69,649
134,205
19,334
390,295
1,313,684
93,302
138,20 1
193,390
60,484
118,758
8,525
303,215
1,349,899
224,830
162,464
177,924
71,699
135,341
9,950
383,377
1,375,658
129, 158
1 49,640
210,383
701,509
187,282
583,354
427,178
2,450,446
534,923
69,960
81",740
30,750
614,790
169,891
529,597
377,909
2,295,578
468,296
101,634
737.837
20,250
707, 196
179,281
595,079
456,111
2,540,786
516,285
79,644
843,136
16,500
Totol loon' (gross) and inv6stments .. ......... $3,121 ,499
Totalloanl-Net l • . • . .. . ............... .
Totol loans-GrOSJ .... .... .. ............
Commercial, Industrial, and ogric:lHtural
loans •.• . . ... ... .. . .............. .
Loans to brokers ond dealers In securities ..
Other loans for purc:hasing or carrying
sec:urlties . •.............. . . ... .. . ..
Real estate loans ........•............
Loans to banks ............ .. .. .. .....
All other loans .......... • . ... . ..... ..
Total Investments • ••• , ••••••••• •••••••••
U. S. Treasury bills, , . . . ......... . .. .. .
U. S. Treasury c:ertific:ates of indebtedness .
U. S. Treasury notes , . .. . . . , .. , . ..... ..
U. S. Government bonds (inc:. gtd.
obligations) ..•. .• .. ..... ... ....... .
Other securities ...• ..........•.. . ....•
Reserves with Federal Reserve Bank . ... . ... ..
Bolonc:e, with domestic: bank, . ..............
Demond deposits_adjusted s ................
Time deposits ex.c:ept Government ............
United States Government deposits ... ........
Interbank demond deposits . .............. . .
Borrowings fram Federal Reserve Bonk ....... .
1,789,212
Gran
demand
Time
COUNTRY BANKS
Gross
demand
Time
$6 .....378 52.777,533 $353.077 $3.213,906 $291.301
719,8A4 3.046.289 392.193 3,467,521 327.651
780.156 3,338,376 421."27 3,686,831 358,729
78A,739 3,380,098 422,356 3,710,206 362.383
798,393 3,387,726 -428.928 3.721,419 3 69,465
808,429 3,223,325 433.931
3,626,827 37~,"98
829,712 3,251,351 444,623 3,571,426 385,089
Changes in the condition of the Federal Reserve Bank of
Dallas between March 15 and April 15 include decreases in
most principal accounts. Member bank reserve deposits declined $82,674,000, while gold certificate reserves decreased
$76,999,000. The reduction in total earning assets amounted
to $13,787,000, reOecting principally a decline in discounts
for member banks but includin g also a decrease in holdings
of Government securities. On April 15, Federal Reserve notes
of this bank in actual circulation amounted to $721.910,000,
a reduction of $4,590,000 from March 15.
CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS
(In thousands of dollar.)
Item
CONDITION STATISTICS OF WEEKLY REPORTING
MEMBER BANKS IN LEADING CITIES
Time
RESERVE CITY BANKS
April'5,
1953
Toio l gold certific:ate reserves .... ........... $ 605,813
Disc:ounts for member banks ....•. .... . • ... . .
9,600
Industrial advances ..... ..... .. . .......... .
o
833
Foreign loans an gold . ... .. ....... . . .. ... .
U. S. Government securities . . ..... .. .... . .. . 1,149,383
Total earning assets .......... ...... .. ... . . 1,159,816
Member bank resen'e deposits .. ...... ..... . 1.004.361
721,9 10
Federa l Reserve notes in oc:tual circula lion .. . . .
April 15.
1952
$ 624,383
o
15
532
1,061,827
1.062,374
975,654
679.449
Marc:h 15,
1953
$ 682,8 12
21,000
o
990
1,151 ,613
1,173,603
1.087.035
726,500
1953
1,779,15 2
1,797,809
1 After deductions for reserves and unalloc:ated c;harge-offs.
, Indudes all demand deposits other than interbank and United Slates Government. lesl
cosh Items reported as on hand or in proceu of collection.
Debits to deposit accounts reported by banks in 24 cities
of the District for March were 12 percent above the total for
February and 9 percent above that for March 1952. The increase in spending during March which these charges to
deposit accounts reflect was general over the District, with
the expansion indicating in part a rise in general business
activity. The annual rate of turnover of deposits was 17.5
in March, as compared with 16_1 in February and 18.0 in
March 1952_
The Secretary of the Treasury announced on April 8 preliminary plans for an offering of 3y'!-percent marketable
Treasury bonds for cash subscription in an amount of approximately 81,000,000,000 and in exchange for Series F
and G savings bonds maturing from May to December 1953,
4
~
MONTHLY BUSINESS REVIEW
ANNOUNCEMENT
BANK DEnITS TO DE.MAND DEPOSIT ACCOUNTS
As previously announced, the bank debits series has
been revised to include debits only to demand deposit
accounts 0/ individuals, partnerships, and corporations
and 0/ states and political subdivisions; debits to
United Slales Government accoltnts and to time deposit
accounts have been eliminated. Year-ago figures have
been estimated and are used in lhe accompanying table
in comparison with current figures reported on the
new basis_
BANK DEBITS. END·OF-MONTH DEPOSITS
AND ANNUAL RATE OF TURNOVER OF DEPOSITS
IAmounls in thouland. of dollars)
DEBITSl
March
Morch
1953
1952 1953
Feb.
Annual rate of turnover
March 31,
1953
March March Feb.
1953 1952 1953
ARIZONA
lucian ••.•...•...... $ 121,062
25
15
Monroe •••••••• .••• •
Shreveport ••• • ••••••
NEW MEXICO
49,664
209,288
- /
15
11
RO$wetl ••• . • ••••••••
24,894
$
89,397
15.8
14.5
13.4
14,4
14
40,628
160,603
15.2
14.8
13.6
12.8
13.1
9
-2
27,451
11.0
11.0
10,4
54,440
2
140,173
-4
108,850
9
132,952
1
148,796
7
12,977
5
1,610,733
13
232,133
22
517,745
78,228
3
1,708,497
6
21,973
3
112,924
7
47,178
13
37,369
-6
409,491
10
19,023 -11
60,220
11
76,905
17
83,689
2
17
12
7
7
9
7
13
5
-3
10
13
18
5
15
10
5
51,352
105,249
102,766
96,569
111,953
20,215
869,782
124,795
332,222
76,794
1,242,425
19,567
90,109
39,071
46,380
326,249
20,341
56,135
58,485
96,394
12.6
16.0
13.2
16.4
16.3
7.7
22.1
21.6
18.6
12.7
18.0
13.0
14.5
14.8
9.6
15.2
11.0
13.6
15.6
10.3
12.7
17.4
14.0
16.9
17.4
7.1
21.6
20.8
19.0
13.7
20.0
14.3
14.8
13.2
10.2
15.2
13.7
13.4
12.6
10,8
10.7
14.2
12.7
15.2
15.6
7.0
19.8
17.8
16.8
11.6
17.'
12.0
14.2
13.3
8.4
13.1
10.4
12.2
13.8
9.8
12
$4,204,932
17.5
18.0
16.1
LOUISIANA
TeXAS
Abilene •. • ••••••••••
Amarillo ••••••.•••••
Aultin ••••••••••••••
Beaumont •••••••••••
Corpus Christi ••.•••.•
Conicana • •.• • ••••••
Dallas ••• .. •.•••••••
EI Paso •••••••••••••
ForI Worth ••••••••••
Galveston •. ••• • ••• ••
Houston •••••••••••••
laredo •.•••••••.•••
lubbock •••••••.••••
Port Arthur •••••.••••
San Angelo ••••...•.•
San Antonio .• • .•••••
Texarkana! •••.. "., •
Tyler ..•.•.•••••.•..
Waco • ••• " ••. " ••.
Wichita Falls •••••• , ••
Tatol-24 dlies • • ••.•.• $6,019,204
the cash offering was heavily oversubscribed, requiring allotments among subscribers. On April 22 it was announced that
subscriptions in amounts up to and including $5,000 were
allotted in full. All other subscriptions were allotted 20 percent, but not less than $5,000 on anyone subscription. Subscription books were open between April 13 and April 30
for the exchange of Series F and G savings bonds which
mature in an amount of approximately $1,100,000,000 in
the period May through December.
At the time of announcement of the offering of the new
bond, the Secretary of the Treasury also announced that increases in weekly offerings of Treasury bills would be made
for the purpose of raising additional cash in an amount of
approximately $1,000,000,000. The first step in this program was begun April 16 with the announcement of an offering of approximately $1,500,000,000 of 91-day bills for purposes of raising $100,000,000 of new money and of redeeming about $1,400,000,000 of bills maturing April 23. It is
anticipated that these two financing programs will meet the
cash borrowing requirements of the Treasury during the remainder of the fiscal year ending June 30.
DEPOSITS~
Percentage
change from
City
69
•
9
11
18
9
14
t Debits 10 demand deposit accounts of individuals, partnerships, and co rp&rations and
of stales and political subdivisions.
, Demand deposit accountJ of individuals, po:utnenhips, and corporations and of states
and political subdivisions,
S Those figures include only one bonk in Texarkana, Texas, Tolal debits for all bonks in
Texarkana, Texos·Arkansos, including two bonks localed in the Eighth District, amounted 10
$40,928,000 for the month of March 1953.
I Indicates change of len than one-half of 1 percenl.
inclusive. It was announced that the new bond would be
dated May 1, 1953, and mature June 15, 1983, with a provision for call on or after June 15, 1978. With reference to
the cash offering, the new bond was designed to attract
savings as they accumulate, especially in such institutions as
life insurance companies, savings banks, and pension funds.
III Provision was made, therefore, permitting payment over a
, period of 3 months from date of issue.
Subscription books for the cash offering were open April
13 and 14. Secretary Humphrey announced on April 17 that
The District's crude oil production continues under the depressing
influence of relatively heavy stocks
of crude and, to some extent, refined
products, as well as a seasonal decline in demand. This seasonal influence is reflected in the
demand for major refined products at refineries and bulk
terminals in the Nation, where deliveries during the 5 weeks
ended April 18 fell 8 percent below those during the preceding 5 weeks. A further seasonal decline is in prospect, because domestic demand for all oils during the past 5 years
has averaged 9 percent less during the second quarter than
in the first quarter of the year_
An increase in district crude stocks during the week ended
April 18 approximately offset declines of the preceding 2
weeks. Consequently, stocks were only 60,000 barrels less
than at the end of March and were 10,600,000 barrels larger
than a year earlier. National crude stocks were 13,900,000
barrels above a year ago, following a further rise in March
and the first 3 weeks of April.
District stocks of distillate fuel oil on April 18 were 24
percent higher than a year ago, while national distillate
stocks were up 25 percent. Meanwhile, gasoline stocks in the
District were 11 percent lower than a year ago; in the Nation they were virtually unchanged. Residual fuel oil stocks
in the Nation were substantially higher than a year ago,
due entirely to a rise in California stocks. As compared with
last year, residual fuel oil stocks in the District at mid-April
were only slightly higher, while total stocks east of California were lower_
With stocks reduced to more workable levels, prices of
residual fuel oil on the Gulf Coast were raised 10 cents a
barrel in early April, accompanied by a corresponding increase on the East Coast. Despite these increases, prices still
are below a year ago.
70
MONTHLY BUSINESS REVIEW
Refinery activity in the District showed little change during March but declined in April, although crude runs to
refinery stills in the first 3 weeks of April were about 3 percent above year-earlier levels_ Meanwhile, refinery activity
in the Nation registered successive declines during the 4
weeks ended April 18 but continued somewhat higher than
a year ago.
Daily average crude oil production in the District during
April dropped to the lowest level since last July, when production had been curtailed markedly in an effort to reduce
heavy stocks accumulated during the strike of refinery workers in May 1952. Production in the first part of April averaged 2,971,000 barrels per day, which is down 156,000 barrels from the March rate and 327,000 barrels from the peak
reached in December. A small increase in the District is
likely in May, since the Texas Railroad Commission has increased the daily allowables for the State a little over 7,000
barrels above those in effect April n. Crude oil production
in the Nation in March and early April followed a pattern
similar to that in the District.
RAILROAD COMMISSION OF TEXAS
OIL AND GAS DISTRICTS
2
MIDOL[ GUL f
!>. UPP[III GULf
't . l.OW£R GULf
5. EAST C£NTRAl.
5.. HORTHUST
7'. NORTH CENT" . l.
7c. WE~ 'E"'TIIIAl
8 . W[ST
9
NORT H
10. PIIJrIHAHOI..E
CRUDE Oil PRODUCTION
(Barrelsl
Area
Mardi 1953
Incr.c:u. or decreol. in doily
- - Tote
- -I- - -Doily
--- - a .... rag. production from
avg.
production
production
March 1952 February 1953
ELEVENTH DISTRICT
Texal R.R. Com. Dlltrkts
1 South Centrol . • . • • • . • 1,1.43,000
2 Middle Gulf. • • . • • • • • 4,885,350
3 Upper Gulf ... ...... , 14,972,150
.4 Lower Gulf . ......... 8,051,550
5 East Central.. • •• •• •• 1,5 15,200
6 NortlMasl •••••• ••••• 11 ,6047,550
East Texas. ....... 7.669.000
Other fields....... 3,978,550
7b North Centrol.. . ..... 3,251,550
7c West Central. ... .. .. 5,542,750
8 West •••.. ...•..• •.• 28.755,350
9 North......... ... ... 5.807,750
10 Panhandle....... .. . . 2,25-4,200
Total Texas •••• •••• 87,826,400
New Mexi,o. . . . . . . . • . • • • • 5,500,700
North Louisiana.... . . . . • • . • 3,602,600
Total Eleventh District • • •.• 96,929,700
OUTSIDE ELEVENTH DISTRICT 0.103,118,950
UNITED STAlES .•...•. •• .• •• 200,048,650
36,871
157,592
-482.973
259,727
48,877
375.727
247,387
128,340
10.4,889
178,798
927,592
187,347
72,716
2,833,109
177,442
116,213
3,126,76-4
3,326.418
6,453,182
3,177
- 12,474
-16,351
. -12,723
-13,817
-20,752
-18,171
-2.581
16,241
32,990
-110,882
25,747
-9,505
-118,349
17,673
-11.516
-112,192
156, 834
44,642
12 1
-9,821
-14.314
-7,135
-3.4 11
-15,836
-12.5 13
-3,323
-6.56 1
2 10
-44,520
-1.090
-3 ,33 .4
-105,691
2.630
1.175
- 10 1,886
22,468
-79.418
SOURCE: Estimated from Amerkan Petroleum Institute weekly reporh.
Imports of crude oil and its products continued heavy
during March, averaging 1,054,000 barrels daily during the
4 weeks ended March 28. as compared with 902,000 barrels
in the corresponding period last year. Imports for April are
expected to show a drop of about 100,000 barrels a day fr om
the March level, based upon reports of maj or importers to
the Texas Railroad Commission.
Drilling activity in the Nation increased moderately during March and early April; the number of active rotary
rigs in the week ended April 20 was 2,545, which is 5 percent higher than at tbe beginning of March but 8 percent
less than in the correspondi ng week of 1952. Well completions in the current year through April n were 2 percent
less than in the same period last year, according to data of
The Oil and Gas J ourna.l. This decrease was more than accounted for by this District, which experienced a decline of
9 percent. A major portion of the decline in the District
occurred in the Spraberry trend.
Employment in the five states of
the District changed very little from
January to February. Total nonagricultural wage and salary workers declined slightly, bringing the
number to 3,805,200; the decrease occurred in trade, mining, and government employment. On the other hand, the
number of manufacturing wage and salary workers rose
1,100 to a total of 717,400, reflecting increases in metals,
metal products, and machinery manufacturing employment.
Total nonagricultural employment in these states remained
about 4 percent above a year ago; manufacturing employmcnt was up 5 percent.
«
Unofficial estimates show significant gains in employment
in district states during March and April. It is estimated
that total nonagricultural wage and salary workers in the
latter month reached 3,830,000, while manufacturing employment rose to 727,000.
It is expected that fewer defense plants will start operations in the months ahead; as these new plants have accounted largely for increases in employment, the rate of expansion in employment may decline. Despite this development, better than normal gains in employment may be expected in the next several months in the states of the District.
According to a recent Department of Labor report, hourly
earnings of manufacturing workers in February averaged
$1.60 in the Southwest and $1.74 in the Nation, reflecting
increases of 10 cents per hour over a year earlier. Manufacturing workers in the five states of the District averaged
41 hours per week, or slightly less than a year earlier.
A Department of Labor report covering unemployment
among state-insured workers in the week of February 14
showed Texas with the lowest percentage among the 48
4
MONTHLY BUSINESS REVIEW
states. The percentages of insured unemployment for the five
states of the District were: Oklahoma, 4.3 percent; Louisi·
ana, 3.3 percent; Arizona, 2.7 percent; New Mexico, 2.5 percent; and Tcxas, 1.2 percent. The national average was 3,1
percent.
residential construction was more than offset by a loss of
22 percent in contracts awarded for all other construction,
The value of construction contracts awarded in the United
States for the first quarter of this year rose 11 percent above
a year ago; residential and nonresidential construction
showed gains of 12 percent and 10 percent, respectively,
A new addition to the growing chemical industry in Texas
has been announced. This plant, which is to be constructed
near Orange, will produce polyethylene, a plastic used to
make transparent packaging and nonbreakable bottles, The
plant is expected to be in operation in 1955 and to employ
250 workers,
The contin ued importance of the defense program in this
area is shown in reports on military prime contract awards,
The five'state area received 3,7 percent of the national total
of awards made from July 1950 through June 1952. However, from June through December of last year the proportion received in this area was 10.4 percent. The awards
do not necessarily indicate the state in which manufacturing
will occur, and awards of less than $10,000 are excluded
from the reports. Moreover, the reports refer only to prime
contracts and, thus, do not record suhcontracting, Nevertheless, the figures show that the states in the District have
increased their share of defense contracts.
71
VALUE OF CONSTRUCTION CONTRACTS AWARDED
(In thou.and. of dollars)
January March
1953
Area ond type
ELEVENTH DISTRICT . ... $
93,"25
Residentiol. ... .... .
52,763
All other . . . .•......
40,662
UNITED STATESl ....... 1,347,518
Residential .........
605,200
All other ... . .......
742,318
March
Februa ry
1952
1953
47,536
93,294
1,321,254
592,717
728,537
Type of employment
February
January
Feb.
Jan.
1953p
1952
1953
1952
1953
Total nonagricultural
wage and salary workers .•.
Manufacturing . ••••••••• •
3,805,200
717,400
Nonmanufocturing .. ...... 3,087,800
229,900
Mining ••. . . . .. .. •.. ...
Construction ..•.. . . .•..
282,500
3,669,200
681,200
3.81 ".000
716,300
3,097,700
231,300
282,200
3.7
5.3
3.3
3.0
4.3
-.2
.2
-.3
-.6
.1
407,100
922,800
135,000
407,800
966,600
.1
- .7
1.1
425,500
439,800
626,600
.2
4.0
7.4
3.'
3.2
2,988,000
223,300
270,800
Transportgtion and public
utilities .•..... .......
Trade .... ........... •
Finance .•.............
Service . ..............
Government . ... ...... •
408,100
959,400
145,000
440,000
622,900
603,500
1.43,400
-.6
Arizona, Louisiana, New Mu.lco, Oklahoma, and Texas.
p-Preliminary.
SOURCE; State Employment Agencies.
1
The value of construction contracts awarded in the District in March dropped sharply below the high levels of the
previous several months and at $93,425,000 was the lowest
monthly total reported in more than a year, The decline reflects a reduction in the March total of contracts awarded for
nonresidential construction to $40,662,000, This is the lowest
figure since October and November 1951 and, with the exception of these 2 months, the lowest in 3 years. As compared
with February, most of this reduction occurred in awards
for construction of nonresidential buildings and utilities
projects. Contracts awarded for residential construction in
the District in March totaled $52,763,000, up 7 percent
~ from February and the highest monthly total since May 1952,
The total value of construction contracts awarded in the
District in the first quarter of 1953 fell 3 percent below the
year-earlier period. A gain of 30 percent in contracts for
1,"83,804
1,960,892
3,108,551
1,326,876
1,781,675
Percentage
change in
valuation
from 3
months
1952
March 1953
Number
Shreveport ....
February
"18,568
602,742
3 month. 1953
LOUISIANA
Percentage
change from
150,446
148,175
3,444,696
Percentage
change in
voluation from
TEXAS
Number of persons
49,279
56,592
1,021,310
BUILDING PERMITS
March
Five Soulhwestern Statest
1952
306,964
116,048
190,916
1"0,830 $ 105,871 $ 298,621
1 37 statel east of the Rocky Mountain •.
SOURCE: F. W. Dodge Corporation.
City
NONAGRICULTURAL EMPLOYMENT
March
1953
F.b.
1952 1953 Number
VQluolion
352 $ 2,303,175 -47
Abilene ... . .. . 211
Amarillo ...•.. Soil
Austin ....••. . 256
8eaumont . • .. . 214
Corpus Christi .. 578
Dallas ........ 1,852
EI Paso ....•.. 305
Fort Worth ...• 892
Galveston .... .
90
Houston ....... 1.211
Lubbock . ..... 337
Port Arthur .. .. 188
San Antonio . .. 2,225
Waco ..... . .. 266
Wichita Falls ...
29
52
1,145,870
2,791,047
9
29
651,651
3,183,798
8,390,759
5,"87.7"6
82",416
509,996
64
56
40
156
- 24
-53
45
81
43
39
-21
-70
40
34
4
30
-9
2
257
-16
-91
37
61
-26
39
-2
-54
Total . ... . ..... . 9,5"7 $49,906,815
19
19
2,472,609 -21
4,923."74
3,734,235
12".174
10,722,484
2,333,576
307,805
Valuation
1,003 $
6,352,760
-7
441
2,519,574
6,770,883
7,648,047
2,516,830
9,431,692
27,515,938
8,386,802
11 ,8 17,884
2,"94,513
28,089,653
5,890,"30
949,870
12,877,813
2,258,970
2, 174, 108
25
2
-5
4
110
36
28
10
222
13
45
46
19
-50
-81
25,364 $137,695,767
10
1,194
722
611
1,369
5,071
875
2,5"1
247
3,154
896
421
5,968
697
154
The number of dwelling units provided in new residential
buildings in Texas for which construction contracts were
awarded in March totaled 4,207, which is about 1,000 less
than in the same month last year, The total for the first 3
months in 1953 was 13,105 units, compared with 11.581 a
year earlier and a first-quarter record of 16,002 in 1951.
DOMESTIC CONSUMPTION AND STOCKS OF conON
(Bales'
August Area
February
1953 1
February
1952
J~n9S3{
february
This season Last leoson
CONSUMPnON
Total
12,344
13,268
85,191
89,802
11,616
Texas mills ...........•
893,806 5/513,529 5,477,419
769,641
765,778
U. S. mills ............ .
Dally average
580
611
542
591
628
Texal mills .. . . ..•.....
37,528
37,283
36,482
38,931
39,128
U. S. mills ........ .....
STOCKS, U. S. - End of period
Consuming establishments... 1,861,629 1,682,891 1,733,358
Public storage Qnd
compresses ....... ... . • 6,940,360 ......... ,558 7,477,283
Four weeks ended February 28.
~ Five weeks ended January 31.
SOURCE United States Bureou of the Census.
1
@FedFRASER