Full text of Review (Federal Reserve Bank of Dallas) : May 1959
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BUSINESS
REVIEW
MAY 1959
Vol. 44, No.5
DALLAS
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RESERVE
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This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
DALLAS
Dallas, popularly called "Big D," has long been the
dominant wholesale and distribution center for the
Southwest, and its economic influence extends throughout much of the middle part of the United States. The
city is widely known for its commanding position as
insurer, banker, and all-round financial center and is
well recognized as a manufacturing center, particula.rly
for its participation in a large aircraft-manufactunng
complex and for its apparel and machinery production.
In recent years, the growth of Dallas electronics firms
has received nationwide attention. In addition, Dallas
has established itself as a major fashion, furniture, and
gift center and has a strong and growing reputation as
a convention city.
Located on the central plains of Texas at the juncture of a maze of interconnected rail, highway, and air
routes, Dallas is a major distributor throug~out Te~as
and the bordering states, as well as to a penphery nng
of states generally north and east of the southwestern
area. Traditionally, the city's closest ties and primary
trade relationships have been to the east, south, and
north, but it has made steady progress in penetrating
the western areas.
Dallas and the neighboring cities of Fort Worth, Arlington, Grand Prairie, Richardson, Irving, and Garland - as well as others in the Dallas County and
Tarrant County areas - are steadily drawing together
into an economic unit which ultimately will know only
political boundaries. Thus, an economic study that
isolates metropolitan Dallas must necessarily underrate some of the strength of the local economy, because
such a study ignores the diversity and economic power
of the unit as a whole. Nevertheless, the growth of
Dallas in competition with these nearby cities and the
changes in its economic structure, which are measurable for the county-wide area, should be analyzed in
any portrait of the city. Moreover, some of the problems of Dallas concern only its citizens, rather than the
entire north-central Texas area.
Historical Development
Lacking the advantages of water transportation or
specialized raw material resources, Dallas has been built
largely upon the leadership, loyalty, and steadfastness
of its citizens. John Neely Bryan founded the city in
1841 by building a log cabin on the banks of the Trinity
I
BUSINESS REVIEW
River. From a mere crossing of wagon trails, the young
settlement grew rapidly and in 1845 was named Dallas
in honor of George Mifflin Dallas, the Vice Presid~nt
of the United States. Mr. Bryan and his small group
of settlers weathered many economic and natural disasters in those first few years; even when the city waS
burned to the ground in 1860, these pioneers quickly
rebuilt it.
Across the Trinity River, another city, Hords La~d
ing, grew along with Dallas. In 1855, a distinctive
French settlement following communal lines was developed southeast of the city, but this died 3 years later.
On the other hand, Hords Landing, or (as it is now
known) Oak Cliff, flourished and was annexed by the
city of Dallas in 1903. A fine residential section, Preston
Hollow, was brought into Dallas in 1945.
Mention also should be made of the growth and
development of the two principal "island cities" within
Dallas. In 1908, as a result of a major real-estate development, the city of Highland Park was established
as a high-class residential district. In the 1920's, a
business section was constructed for this city - a seCtion which has served as a model for many others and
attracted nationwide attention.
The other major island city, University Park, developed after the first building for Southern Methodist
University was constructed in 1915. The city initiallY
received its water from the university's facilities, but
in 1924 the university notified residents of this area that
utilities could no longer be supplied. A request for immediate annexation was forwarded to both Dallas and
Highland Park, but neither city was willing to constrUct
the necessary connecting lines. Consequently, in 1924
the residents voted to incorporate University Park and
began construction of their own municipal facilities.
The city of Dallas now completely surrounds both Highland Park and University Park.
In keeping with the experience of nearly every majo~
city in the southwestern area, Dallas was oriente
mainly toward agricultural activities in the formatiV~
years of its development. Located in the central part 0
the fertile Blacklands, it was surrounded by productive
farms, the principal crop of which was cotton. The
city became a processing center for cotton as early ~s
1865 and, as late as 1940, still relied upon this baSIC
I
commodity for a substantial share of its agriculturally
based distributive and trade activities. Agriculture and
Cotton also were specifically responsible for the beginnings of manufacturing in the Dallas area. For many
years, Dallas was the national and world center for the
production of cotton gin machinery and harness and
saddlery equipment.
headquarters of the regional Federal Reserve Bank of
the Eleventh Federal Reserve District in this city. As
in the case of every other Reserve bank headquarters
city, the location of the Federal Reserve Bank provided
a further stimulus to the growth of financial institutions
and dependent financial relationships in the area.
Dallas was a banking center as early as 1885, and its
financial strength was clearly apparent by 1900.
The economic growth of Dallas was furthered by expansion of manufacturing activities during World War
II. Prior to this time, manufacturing had been principally a service function to the agricultural industry, the
notable exceptions being apparel and automobiles. With
the establishment of a major aircraft producer during
World War II, manufacturing activities in Dallas
broadened and expanded steadily. The growth of the
aircraft complex in this area, coupled with the derivative
fIrms whose products are largely dependent upon the
aircraft industry, has brought Dallas significant stature
as a manufacturing center.
Next in the chronology of important economic deThe economic history of Dallas has a continuity velopments in Dallas was expansion of the oil industry
lacking in most major cities. From 1845 to 1959,Dallas in Texas. While Dallas County has no oil production,
has keyed its economic life to trade and service func- its central location with respect to many major fields
tions: The dominance of these distribution activities attracted a number of headquarters offices. In later
has been modified by the growth of a number of other years, the Dallas banks pioneered in the financing of
economic pursuits, but trade and service industries also oil production loans, and such financial transactions
~ave grown rapidly. The early enticement of railroads brought further oil company activities to the city.
~nto the city was one of the significant steps encouragIn the latter part of the 1920's, a concerted effort
Ing this growth. The building of seven railroads into was made by the civic and business leaders to expand
Dallas, beginning in 1872 and accelerating until 1892, the scope of the city's distributive trade activities from
and the improved land routes provided the accessibility purely local and regional products to products of naneeded by the city to continue distribution activities in tional origin as well. This drive led to the establishment
the southwestern area.
of a number of distribution offices of national corporaThus, trade and services were the foundation stones tions and considerably broadened the wholesale acof the economic structure of the city of Dallas, but with tivities of Dallas. In many cases, the establishment of
them came certain derivative activities that served to a manufacturer's agent or representative was merely
strengthen and support the Dallas economy in later the initial step; with the growth of the city, such agenyears. Foremost among these were the financial ac- cies were converted into full-scale regional distribution
tiVities, which started as a service to the cotton business. centers or regional manufacturing establishments.
One of the important stimulants to the financial life
of the city has been its insurance companies. Some of
the largest of these companies were formed near the
turn of the century and grew rapidly, partly in response
~o the Robertson Act, passed by the Texas Legislature
~ 1908. This act requires all insurance companies doIng business in the State to invest 75 percent of their
premium receipts in Texas investments. Most national
InSUrance companies, unwilling to comply with this
Provision, withdrew from the State. In the resulting
Void, a number of small insurance companies developed
and located in the city of Dallas, largely to take advantage of the strength in local banking facilities and the
~vailability of funds flowing from the agricultural actIVities of the region. All of the large life insurance
c.ompanies have now returned and contribute substantIal amounts of money for Texas investments.
By 1913, Dallas had become the banking and insurance center of the Southwest and was recognized as
slIch When the Federal Government established the
Finally, just after the close of World War II, a new
drive for national recognition, duplicating the efforts
of the city leaders in the late 1920's, was made to counteract what was expected to be a major postwar recession. National concerns were again encouraged to
establish local field offices, distribution warehouses,
and, in a few cases, assembly or manufacturing plants.
Natural Resources
The importance of natural resources to Dallas is not
to be found in the usual availability of raw materials.
BUSINESS REV I EW
I
The only commercially feasible mineral deposits are
sand, gravel, clay, shale, and limestone. In fact, except
for its impact on trade and financial activities, mining
is a negligible factor in the Dallas area.
The significant natural resources of Dallas County
are its location, the topography and quality of its land,
and its river. Dallas is the focal point of a broadly diversified economic region within a territory limited by
the Mississippi River on the east, the Arizona border on
the west, the State of Kansas on the north, and the Rio
Grande on the south. The city is near the geographic
center of this broad area.
Location was important in the early history of Dallas
since the east-west wagon trails and a major north-south
road crossed here. In more recent years, the city's location has been significant in relation to the areas of
rapidly expanding population and markets. Its protection from coastal attack was a factor in the location of
defense industries during World War II. The exploitation of its strategic location by the development of
wholesale trade and service activities has been one of
the prime stimulants to the growth of Dallas.
The topography, availability, and use of the land
are also major natural advantages of the Dallas area.
The land is generally flat but has sufficient tilt to provide
good drainage and excellent building sites. The only
natural barrier in the immediate area was the Trinity
River, but this was spanned early in the city's history
and is contained in a broad system of dikes and levees.
Of the total land area of 571,520 acres in Dallas
County, approximately 316,000 acres are devoted to
farming - a proportion which has steadily declined
as more suburban developments, highways, and rural
home sites have been created. An abundance of land is
available for expansion within the county, particularly
northeast, northwest, and south of Dallas.
Of considerable importance to Dallas has been the
nearby availability of surface-water supplies. Subsurface sources were significant in the early history of
Dallas, but with its rapidly expanding population, increased per capita usage, and industrial growth, the
city has placed greater reliance upon surface supplies.
Surface water is available from the main stream and
various tributaries of the Trinity River, the Neches
River, the Sabine River, and (in times of extreme hardship) even the Red River. At present, virtually all of the
dependable Dallas water supply comes from the
branches and main stream of the Trinity River.
I
BUSINESS REVIEW
As early as 1900, metropolitan Dallas, with a population of 82,726, began to develop surface-water supplies by constructing Bachman, Dam and Reservoir.
When the city continued to gro~, new surface sources
were needed, and White Rock Reservoir was built in
1911. Garza Dam, the first on the Elm Fork of the
Trinity River, was developed in 1927. With the rapid
growth of Dallas after World War II, additional capacity was necessary. Grapevine Dam, located on Denton
Creek, was completed in 1952. In the following year,
Lavon Dam was finished, and Dallas currently has a
safe, dependable supply of 10 million gallons per day
from this reservoir. In 1954 the Garza Dam-Reservoir
was enlarged to become the Garza-Little Elm Reservoir, nearly quadrupling the impounded storage capacity available before the war.
Currently, in another major step, Dallas is financing
the Iron Bridge Reservoir on the Sabine River, in
return for a firm commitment of 80 percent of the
capacity. In addition, following a master plan of development, the city has recently received approval for
the early construction of Forney Dam on the East
Fork of the Trinity River. Plans for the future include
construction of Roanoke and Aubrey Reservoirs, to
be located northwest of the city on branches of the
Trinity River.
At present, Dallas has a dependable supply of 140
million gallons per day, or nearly 40 percent more
than its average effective demand. The completion of
the master plan will provide a safe daily yield of over
500 million gallons. With an estimated 4-year supply
in its reservoirs - even without any rains - and a new
reservoir scheduled for completion by 1962, Dallas
appears to be in an excellent water supply position.
The only major problems for Dallas in connection
with its water supply are the distribution facilities.
The rapid growth of the city from 45 square miles ill
1945 to 270 square miles in 1958 has created a strong
demand for new and larger water lines and placed
pressure upon available facilities. Despite the expenditure of more than $48 million since 1945 and currell t
projects costing about $29 million, Dallas has been
unable to keep pace with its rapidly expanding requirements. As a consequence, the distribution facilities are
not yet adequate in all sections of the city, particularlY
the newly annexed areas; and pumping stations to
maintain pressure in periods of peak use are needed
in certain sections, especially the areas of recent higbdensity suburban growth.
Another natural resource of great importance to
Dallas is its climate. The generally dry, warm, and
Sunny climate promotes outdoor activities and permits
the construction of homes and factories with only a
minimum of weather protection. Of course, the hot
sUmmers have encouraged the use of air conditioning,
but the dryness of the Dallas climate reduces corrosion
~nd mildew. The sunny, dry weather has been a factor
In attracting the aircraft industry to Dallas and may
~ave influenced the growth and development of other
Industries. Certainly, it is a major attraction to laborers
moving from colder sections of the Nation.
The above discussion details the principal natural
resources of the Dallas area. Measured against the
natural resources of other large metropolitan areas,
Dallas County's resources are not especially outstanding. In fact, Dallas is at a relative disadvantage with
regard to raw material and water transportation
resources. Moreover, those resources which the city
does have are shared by a broad section of central
!exas. Yet, Dallas has developed at a rapid rate, and
Its growth has exceeded that of many cities located in
areas with more abundant natural resources.
Human and Cultural Res ources
The key to the rapid growth of Dallas is found in
the extraordinary leadership of its citizens, which has
~rovided the ability to capitalize upon the land, locahonal, and climatic resources of the area. Dallas has
never been without a strong group of civic-minded,
progressive leaders who have been willing and able to
SUpport projects designed to improve the community.
Tohis continuity of dynamic leadership throughout the
hIstory of Dallas is one of the principal distinguishing
characteristics which set Dallas apart from many other
major cities and is the most significant single factor
responsible for the city's growth.
POPULAT ION
DALLA S COUN TY AND TE X AS
TH OU SAN DS OF PERSONS
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~ALLASCOUNTY
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1930
. 1940
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195 8
S OU RCE ' U.S. Burl ou of thl CUU UI ,
age of its citizens was 30. years in 1950., contrasted
with a state-wide average of 27.9 years. However, only
5.9 percent of the area's population was 65 years of
age or older, while 6.7 percent of the State's population
had reached age 65 in 1950..
Another characteristic of the Dallas population is
its high degree of education. Of persons 25 years of
age or older living in Dallas County in 1950., 44.7
percent had completed high school, a substantially
higher figure than the state-wide average of 29.9
percent.
A major feature of the growth of Dallas has been
the in-migration of high-quality personnel from other
states. This feature, coupled with the type of industry
and commerce in Dallas, probably has been the principal reason for the maturity and high educational
levels of the population. Nevertheless, some measure
of the educational advances in Dallas must be attributed
to its schools.
The city has shown marked growth in population
during each of the eleven decades of its existence, with
~orne evidence toward acceleration in the postwar perIOd. Since about 1880., Dallas has been one of the
Ulajor cities in the Southwest and has been one of the
~hree largest in Texas. Currently, Dallas, including its
Island cities, is the second largest city in the State and
has a population of about 725,0.0.0., or more than
double its 1940. total. The county population is presently estimated to exceed 90.0.,0.0.0. persons.
Primary and secondary education in Dallas County
is administered by 20. independent and three common
school districts. The schools have a current enrollment
of 187,0.0.0. pupils, reflecting an increase of more than
10.0. percent over the 1948 total. To meet this increase
in student population, Dallas has constructed many
new elementary schools and junior and senior high
schools. There are also a number of private, church,
and trade schools in the Dallas area.
The metropolitan area population reflects greater
maturity than the average for the State. The median
Schools of higher education have a prominent place
in Dallas. Southern Methodist University , which
BUSIN ESS RE VI EWl
opened in 1915, is the major institution of higher
learning in this area and currently has 6,300 students.
Its engineering and law schools are among the strongest in the Southwest and have achieved a measure of
national recognition, especially the work of the law
school in conjunction with the Southwestern Legal
Foundation. The university also has a highly rated
school of theology and a large night school. Recently,
SMU broadened its graduate school program by offering courses leading to the doctor of philosophy degree
in economics. Doctoral programs in religion, the
sciences, and other fields are planned for the future.
The Southwestern Graduate School of Banking, cosponsored by the Dallas Clearing House Association,
is another recent addition at Southern Methodist
University.
The university has steadily added to its physical
plant with new dormitories, classrooms, and a beautiful student center. Some of the latest research aids,
including the Univac type of data-processing equipment, have been provided recently. Moreover, a new
fine arts center is being developed to coordinate work
in music, drama, painting, radio, and television. Some
of the credit for the progress at SMU must go to the
citizens of Dallas, as they have subscribed to a yearly
sustentation fund to augment the income from an
endowment fund, tuition, fees, and miscellaneous
sources.
One of the best examples of this cooperation has
been the recent establishment of the Graduate Research
Center to advance knowledge in the pure and applied
sciences. The basic financing for the center has come
from contributions by three private Dallas foundations. The center's initial building, a library, is to be
constructed on the SMU campus and is expected to go
under contract this year. The research center will be
a valuable addition to the existing research facilities.
There are also a number of smaller colleges in the
Dallas area. The University of Dallas, established in
1954, has about 500 students and is a liberal arts
college created under the sponsorship of the Catholic
Church. Medical schools include the University of
Texas Southwestern Medical School and Baylor University College of Dentistry. The medical school moved
into its new $6.5 million buildings in the early fall of
1958; thus, the whole school is on its own campus for
the first time in its IS-year history. In addition, there
are many business schools, some concentrating primarily on such technical business skills as accounting,
I
BUSINESS REVIEW
typing, shorthand, and filing and others emphasizing
electronics courses.
However, the higher-education facilities in Dallas
need to be expanded to accommodate the engineering
requirements of the large aircraft, automobile, and
electronics firms in the area. A publicly supported
mass-education university could be a source of technically trained personnel for industries in both Dallas
and Tarrant Counties. Making Arlington State College
a 4-year institution, as recently recommended, and
continuing the improvements at SMU might help to
meet this need.
Medical facilities in Dallas are among the finest in
tl1e Southwest. The city has nine public and private
hospitals with a total of 3,434 beds. The substantial
expansion which is under way will eventually add more
than 900 new beds. Research facilities and the medical
schools provide a strong support to the direct patient
contacts.
The cultural facilities in Dallas are well recognized.
Probably the activity which receives the most attention
is the State Fair of Texas, held in Dallas annually during
early October. Established in 1886, the fair was a major
attraction long before Dallas was selected as the location for the Texas Centennial of 1936. As a result of
this selection, however, many permanent buildings
were erected, and, even today, they provide a sizable
amount of exposition space at the State Fair. Each
year, more than 2.5 million visitors push through the
fair's gates to be greeted by "Big Tex," a make-believe
cowboy with a booming voice.
As the years rolled by, the State Fair changed character to reflect the current emphasis upon educational
exhibits, sporting events, and high-caliber entertainment. The automobile show, historical exhibits, football
games (particularly the recurrin cr rivalry between the
University of Texas and the Univ~rsity of Oklahoma),
and ice and musical shows are high lights of each State
Fair. In addition, the midway facilities and the yearround attractions of the museums, musical plays and
concerts, and other activities make the State Fair II
continuous source of recreation and education in
Dallas. A notable event is the Pan-American Livestock
Exhibition, which attracts cattlemen from many other
countries.
The fair is an important commercial enterprise to
both the participants and the trade and service concerns
of Dallas. Substantial sales are made by not only the
concessionaries and exhibitors but also the commercial
establishments that furnish hotel rooms, food, transportation, and numerous other items to the many
Out-of-town visitors. These visitors eften use their State
Fair trip as an opportunity for shopping expeditions
in the many large stores of the city.
Employment and Income
The growth of the Dallas County economy is vividly
demonstrated by the gains in employment. Total employment rose from 162,019 in 1940 to 400,675 in
December 1958, reflecting an increase of nearly 150
percent despite an actual decline of over one-fourth
in agricultural employment. The downward trend in
the number of agricultural workers is a result of consolidation of farms into larger units, the mechanization
of farm work, and the steady decline in farm acreage
in Dallas County.
Other important cultural facilities and programs in
Dallas include a well-Fecognized symphony orchestra,
a metropolitan opera season, a summer series of State
Fair Musicals, and museums of fine arts, science, and
natural history. Dallas is an important center of legitimate theater presentations and has a number of fine
Nonagricultural employment in the Dallas metrorestaurants and private clubs.
politan area increased about 155 percent from 1940 to
A recent addition to the facilities of Dallas which has 1958, with the sharper advance occurring from 1940
encouraged cultural activities, as well as conventions, to 1950. Compared with the state-wide gains, Dallas
Sports, and other large gatherings, is the municipal showed a more rapid rate of growth from both 1940
aUditorium. This $8 million structure, capable of to 1950 and from 1950 to 1958. The advance in factory
seating 10,000 persons with an unobstructed view, is employment also was more rapid in Dallas than in the
an especially fine complement to the growing hotel State in both periods. In the 1950-58 period, factory
and motel facilities in attracting the larger conventions. employment in Dallas County rose nearly three-fourths
A.lthough completed only 2 years ago, the auditorium while such employment in the State increased only
one-third.
already has provided the space needed to hold several
Reflecting these outstanding increases, the Dallas
national and international conventions, each with a
labor
market has developed the flexibility needed to
t?tal of more than 8,000 registrants, and has been the
meet unusual demands. Unemployment has been conSite of many local meetings.
sistently below the national average; long-term unemRecreational facilities in Dallas include several excel- ployment has been especially low. There is an almost
lent country clubs and golf and tennis clubs; nearby chronic shortage of good secretarial help, caused
lakes for fishing, boating, and swimming; and a large
largely by the exceptional growth of financial institu~SSortment of spectator sports, such as college compe- tions and major oil and utility companies.
htion in most ma jdr sports and professional wrestling
The structure of employment in Dallas reflects a
and baseball. There are always professional entertainers
considerably
different internal composition from that
at the large hotel dining rooms, with some of the top
State.
Manufacturing, finance, and trade emin
the
names in show business often starred.
ployment represents larger portions of the Dallas
Dallas has more than its share of fine churches and nonagricultural total than of the Texas total. On the
synagogues. Of all the Baptist, Christian, Methodist, other hand, mining and government are more important
and Presbyterian (Southern) churches in the United sources of employment in the State than in Dallas. Of
States, the largest church in each denomination, from approximately equal importance in both Dallas and
the standpoint of membership, is to be found in Dallas. Texas are services, construction, and transportation,
In addition, there are two important church schools communications, and utilities.
the Southern Methodist University School of Theology
There has been a sharp change in the relative imand the Dallas Theological Seminary.
portance of the various types of employment in Dallas
While the discussions above present a brief picture County. Manufacturing employment has steadily inof the general environment of the Dallas economy, a creased its share of nonagricultural employment from
?etailed analysis of the employment and personal 17 percent in 1940 to 22 percent in 1958; in Texas,
InCome sources in the area must be made in order to its share grew from 14 percent to 17 percent. As might
appraise the significant structural components of this be expected, other types of employment generally
economy. Both employment and income data are well accounted for smaller shares of the Dallas nonagriculSUited to the measurement of an area's economic base. tural total in 1958 than in 1940.
BUSINESS REVIEW
I
The trends and structural differences evident in the
employment data reveal several significant facts about
the Dallas economy. First, the very rapid growth rate
from 1940 to 1950 slowed noticeably after 1950,
except in manufacturing and a few smaller categories.
This reduced rate of gain, in turn, indicates a much
slower advance in certain other sources of employment
- especially construction, government, and transportation, communications, and utilities.
Secondly, a fairly definite pattern of concentration
is evident in the employment statistics. Manufacturing,
trade, services, and finance account for 73 percent of
nonagricultural employment in Dallas County. In
contrast, these four types of employment are responsible
for only 62 percent of nonagricultural employment in
Texas. On the other hand, mining and government
supply 22 percent of the state total but only 11 percent
of the Dallas County total. The other types - construction and transportation, communications, and
utilities - account for about 16 percent of both Dallas
and Texas employment totals.
increase of only 81 percent. In 1957 the personal
income of Dallas citizens was about 1 ~ percent of the
state total, and wage and salary income was approximately 12 percent. Wages and salaries were 69 percent
of total personal income in Dallas but were only 65
percent of the Texas total. Other labor income was
also more important to Dallas than to the State. In
contrast, proprietors' income, property income, and
transfer payments (such as unemployment compensation) constituted larger percentages of the total for
Texas than for Dallas.
WAGE AND SALARY INCOME. BY INDUSTRY
DALLAS COUNTY AND TEXAS
1957
Income measurements are perhaps better indicators
of the structural importance of the various segments
of an area's economy. The income generated by a particular type of industry may indicate not only the level
of wages and the profitability of the enterprise but also
the amount of purchasing power available to sustain
other types of local industry.
Personal income in Dallas rose sharply from $921
million in 1948 to $1,855 million in 1957, reflecting
a gain of 101 percent, contrasted with the state-wide
PERSONAL INCOME. BY MAJOR TYPES
WAGES AND
SALARIES
OTHER LABOR
INCOME
PROPERTY
INCOME
TRANSFER
PAYMENTS
TOTAL INCOME
'PERCENTAGE INCREASE
SOURCES : U,S, Deparlm,nt
.
or Commlru,
F.dlrol R... , .. Donk 01 Dallal .
I BUSINESS
REVIEW
TEXAS
SOURCES : U,S. Deparlmen' If eemm,r".
Federal R... ru Dank of Dalln.
Within the Dallas wage and salary total of almost
$1,310 million in 1957, manufacturing contributed
about $365 million, or nearly 28 percent. Such income
was only 21 percent of the comparable state total.
Wage and salary incomes from trade, services, and
finance, insurance, and real estate also were substantially more important to Dallas than to the State. These
four activities supply about 73 percent of all DallaS
County wages and salaries but just 54 percent of the
state total.
Several sources of wage and salary income are more
important to the State than to Dallas. The most notable
of these are government, mining, and farming, which
account for almost 29 percent of total state incoIlle
from wages and salaries; in Dallas, these three sourceS
contribute a little over 11 percent. The remaining
segments - construction; transportation, communica-
AVERAGE WEEKLY AND HOURLY E>ARN INGS OF MANUFACTURING
WORKERS, DECEMBER 1958
Dallas County and Texas
Average weekly earnings
Average hourly earning s
Type of
manufacturing
Dallas County
Texas
Totol . . .... . . . .. . . . .
Dura ble goods... . . . .
Nondurable goods....
$82. 15
87.98
73.92
$87.14
88.20
86.30
Dallas County
$ 1.97
2.12
1.76
Texa s
$2. 11
2.11
2.11
SOURCE, Texas Employment Commission .
t~ons, and utilities; and other sources - show very
lItHe difference in concentration and account for 16
percent of the Dallas total and 17 percent of the Texas
total.
Basic Economic Activities
Measured by either employment or income, the basic
economic structure of Dallas is concentrated in four
primary segments - trade, services, finance, and manUfacturing. These four activities comprise the only
economic segments which are clearly more important
to Dallas than to the State. Furthermore, although
Dallas County provides roughly 11 percent of all employment and income in the State, the four segments
account for 13 percent to 25 percent of the comparable
state totals.
. The other sources of income are not as obviously
SIgnificant to the growth and development of Dallas.
~owever, construction and transportation, communications, and utilities are quite important as facilitating
agents. Although government, farming, and mining do
not provide substantial amounts of direct employment
?r income to Dallas, they are sources of considerable
Indirect income, especially as purchasers or producers
of goods and services which are vital to the distribution,
service, financial, or manufacturing segments of the
Dallas economy. These secondary sources of employl11ent and income will be discussed later.
tRADE
As indicated above, trade and distribution activities
were the foundation stones of the Dallas economy and
are one of its sustaining pillars of strength. By means
o~ Special promotions and steady emphasis upon effiCIent service, these activities have expanded constantly.
Outstanding in this segment is wholesale trade
activity. Dallas outlets handle more than one-half the
~les of wholesale establishments in certain lines in
. eXas. The importance of wholesale trade activities
lIes in the fact that they attract a wide range of other
economic pursuits and bring to the city large numbers
of people, who purchase food, clothing, shelter, and
services. These factors and the corollary financing
arrangements are the basic reasons why cities try to
obtain wholesale trade concerns. Moreover, the presence of wholesale establishments breeds better transportation facilities, which, in turn, foster the growth of
other economic pursuits. Wholesale outlets can be
placed in a reasonably compact area and are adaptable
to buildings of the one-story type. Finally, wholesale
establishments are instrumental in developing close
economic ties with individuals and companies in other
cities or regions.
The basic attraction to wholesalers in the early days
the. location of Dallas, supplemented by the steadily
Improvmg network of transportation facilities which
gave a~cess to the city. These continue to be strong
attractIOns, but other reasons have reinforced the
wholesalers' choice of Dallas as a base of operations.
Among the most important of these are the facilities
for showroom space. The large hotels have some permanent display rooms, but the greatest amount of selling
space has been in the Merchandise Mart and in the
showrooms of individual wholesalers. The Merchandise
Mart provides 550,000 square feet for about 650
tenants .
~as
Recently, new specialized buildings have been constructed to display furniture and gift merchandise, and
the Merchandise Mart has been remodeled. The
Decorative Center, Homefurnishings Mart, and Trade
Mart are all relatively new; in fact, the Trade Mart
with nearly 800 display rooms, was just opened i~
early 1959. These facilities, together with the new
auditorium and the expanded hotel space, have made
wholesaling from Dallas much easier and more convenient.
In addition to the above factors, some wholesalers
undoubtedly are attracted to Dallas by the mere
presence of other wholesalers. The convenience of
being able to purchase complementary goods at adjacent offices and the attraction of permanent displays
are steadily bringing more specialty wholesalers to
Dallas. Finally, the use of existing facilities and personnel may be a major factor for concerns which need
only a small staff to represent them.
Dallas wholesale firms provide work for about
37,000 people and supply nearly $170 million in
annual wages and salaries. These figures represent
about 11 percent of total employment and 13 percent
BUSINESS REVIEW
I
of total wages in Dallas County. The Census of Business reports that the 2,078 wholesale establishments in
Dallas County in 1954 handled nearly $3 billion of
goods, or 15 percent and 27 percent of the respective
Texas totals. The dollar value of goods handled per
establishment in Dallas averaged almost $1.5 million,
in contrast to an average of only $700,000 per establishment in the rest of the State. To some extent, this
census understates the Dallas wholesale trade picture
since nonstore wholesalers, especially independent
salesmen and brokers, were excluded from the census
tabulation.
Three types of wholesalers are prominent in Dallas:
manufacturers' sales branches and offices, merchant
wholesalers, and merchandise agents and brokers.
Manufacturers' sales branches and offices - with sales
of $1,257 million in 1954, or 44 percent of the state
total- are of greatest importance to Dallas. Classed
by type of commodity handled, the city's principal
manufacturers' sales offices deal in transportation
equipment, food, nonelectrical machinery, chemicals,
and electrical machinery. Each of these types of manufacturers' offices or branches accounted for more than
one-third of the corresponding state-wide volume
during 1954. Dallas offices handling apparel, rubber,
and instruments accounted for over 50 percent of the
comparable state sales, undoubtedly because of the
large apparel, automobile, aircraft, and instrument
manufacturers in the area.
Merchant wholesalers are in second place in Dallas,
with 1954 sales of $1,217 million, or 21 percent of
the state volume. The largest of the Dallas merchant
wholesalers handle raw farm products (principally
cotton), machinery equipment, and groceries; however, measured by their importance to the state-wide
volumes, which range from 36 percent to 59 percent,
the dry goods, furniture, and cotton merchant wholesalers are more prominent. Well-organized groups or
associations and permanent display space mark the
wholesale trade in each of these lines, as evidenced by
the Dallas Cotton Exchange, the Merchandise Mart,
the fashion associations, and the furniture exhibits.
The third large group of Dallas wholesalers is the
merchandise agents and brokers, who handled goods
valued at $450,365,000 in 1954. Agents handling
groceries are the largest; but, in relation to the state
totals, the apparel, dry goods, electrical apparatus and
appliance, furniture, automotive, hardware, and drug
and chemical wholesalers are more important. Each
r BUSINESS
REVIEW
of this latter group accounts for over 60 percent of the
comparable state sales volume.
The remaining types of wholesalers - petroleum
bulk plants and assemblers of farm products - contribute much less in total sales volume and are of less
importance to the state total. There were only 36 such
wholesalers in Dallas County in 1954, with a sales
volume of about $67 million.
Retail trade also is an important part of the economic
structure of Dallas. The nearly 7,500 retail trade
establishments in Dallas County employ about 64,000
workers, paying them approximately $184 million in
annual wages and salaries. Dallas accounts for 12 to
13 percent of retail trade employment and sales in
Texas, but its retail trade expansion generally has been
more rapid than that in the State.
Among the various types of retail trade outlets, automotive, food, and general merchandise stores have the
largest volumes of business. These three types of establishments account for approximately 35 percent of
total retail sales in both Dallas County and the State.
However, there are differences in the patterns of retail
trade in Dallas and in Texas. As a percentage of the
state totals, sales at the various types of Dallas retail
outlets range from about 9 percent to 37 percent. The
smaller shares are evident in sales of lumber and building material establishments, hardware stores, farm
equipment dealers, gasoline service stations, and furniture, homefurnishings, and appliance outlets. Such
stores are common in nearly all urban areas, while the
larger establishments are found mainly in the big cities.
Thus, sales of general merchandise, apparel and accessories, and eating and drinking establishments in Dallas,
as well as sales of nonstore retailers, account for larger
shares of the state totals.
Population growth and the shifting nature of consumer purchases in the postwar period have alternately
enlarged and contracted the number of retail stores of
a given type, but there has been rapid growth for the
period as a whole. Moreover, although a large number
of new specialty shops have sprung up in the expanding
suburban areas, there has been a general move to
increase the variety of items sold at many stores,
notably drug, hardware, and food stores. For example,
food stores now sell toiletries, records, small appliances,
and a host of other items. In addition, many stores formerly handling only low-cost items have broadened
their coverage to include higher-priced merchandise.
This increased diversity of items for sale and the about 12 percent and 10 percent, respectively, of total
sharp movement toward the suburbs have had a marked workers and total wages in the county and are around
effect upon the locus of retail sales in Dallas and other 14 percent of the service industry employment and
principal cities of the State. While total retail sales in payroll in Texas. Including firm proprietors, profes~allas County rose 56 percent from 1948 to 1954, sales sionals, and other self-employed individuals, service
In the Central Business District declined almost 2 per- employment in Dallas totals nearly 65,000. The 1954
cent. The chief losses at food and apparel stores were Census of Business for selected services reports 4,596
partly offset by increases at general merchandise stores, service establishments in Dallas County, with total
eating and drinking establishments, and jewelry stores. sales of $184,915,000, or 18 percent of the state service
The downtown area accounted for about 50 percent of sales total.
cOunty-wide sales at apparel and general merchandise
Among the major types of services reported in the
stores "but provided a very small portion of county sales
1954 census, business services and amusement and
of food stores, gasoline service stations, and lumber,
recreation services were outstanding in Dallas. For
bUilding material, hardware, and farm equipment
each
of these types, Dallas firms reported sales totaling
dealers.
more than one-fourth of the comparable state total.
The trend toward suburban shopping centers has In 1954, there were 724 business service outlets, with
b~en particularly noticeable in Dallas. With 125 shop- sales of $45,868,000, and 394 amusement and recreaPlllg areas already opened, 10 are under construction, tion outlets, having total sales of $39,997,000. In
and several more are under consideration. In size, the business services, the principal Dallas industry is advercenters vary from two or three stores with a few hun- tising. With 98 firms, the advertising group reported
dred square feet of selling space to the giants housing 1954 sales of over $23 million, or more than 41 percent
Over 100 outlets and having more than 500,000 square of the state total. In amusement and recreation services ,
feet of selling space. One of the largest in Dallas County Dallas is particularly strong in the distribution of
motion pictures, with sales amounting to over 90 perrecently opened just northeast of the city.
cent of the state total.
It is scarcely possible to overestimate the impact of
The other major types of services reported in the
~~se shopping centers upon the buying habits of Dallas
1954
census showed the usual pattern for a large urban
CItizens. An increasing proportion of day-to-day purcenter.
Personal services, such as barber shops, launChases is made at the shopping centers. The downtown
stores are especially attractive to the expanding work dries, and dry-cleaning establishments, had total sales
~orce in the area anc~ to orit-of-town visitors. The grow- of $40,930,000 for 1,826 outlets. Automobile repair
Ing number of visitors brought in through business and services reported $19,089,000 of sales by 654 establishments, while miscellaneous repair shops, such as
~ocial connections and by conventions is a strong force
In the sales volumes of the downtown establishments. watch and electrical repair establishments, had sales
amounting to $20,963,000. The hotels, motels, tourist
Since 1954, retail sales in Dallas County have in- courts, and camps of Dallas County, totaling 208 in
cr~ased further by an estimated one-third. The principal 1954, reported sales of $18,068,000.
gaIns from 1954 to 1957 occurred at drug and food
While the above data reflect a sizable dollar volume
~.tores, gasoline service stations, and automotive estabof sales and a relatively large number of people engaged
1shments. The wider range of items for sale, the greater in the service industry in Dallas, the principal contribunUmber of outlets, and the rising use and purchases
tion of this industry is that it is a facilitating agent for
of automobiles and accessories account for these gains. many other activities in the area. The hotel and motel
!n 1958, sales at automotive outlets declined sharply
facilities are especially important to the city and, in
In line with the slower consumer demand for 1958 recent years, have been sharply expanded in recognilllOdels, but sales at the other three leaders continued
tion of the growing significance of Dallas as a convenupward.
tion city. Nearly 2,600 new hotel and motel rooms
SERVICES
have been added since 1954, and almost 1,000 addi. The second foundation stone of the Dallas economy, tional rooms will be available in projects already
Its service industry, employs 42,000 workers and pays announced. Thus, Dallas will soon have more than
Wages and salaries of $135 million. These totals are 10,000 hotel and motel rooms.
BUSINESS REVIEW!'
FINANCE, INSURANCE, AND REAL ESTATE
The third primary support of the Dallas economy
is its financial institutions. In terms of direct employment, the finance, insurance, and real-estate concerns
of Dallas County account for about 28,000 workers,
or 8 percent of total county employment. Wages and
salaries paid these workers total approximately $102
million per year, which is also 8 percent of the wage
and salary income of Dallas.
However, the real significance of these institutions
lies in their widespread impact upon the business and
economic life of the entire Southwest. In a complex
modern industrial society, money and credit are the
lifeblood of all economic activities. Short-term bank
credit and long-term capital funds are vitally needed
td continue the growth of any area. As the banker of
the Southwest, Dallas has led in the means of getting
borrower and investor together, and because of the
increased use of credit and the need for continuous
review of credit lines, the city has become a regional
management center.
With respect to practically every type of financial
institution, Dallas is the cornerstone of the Southwest.
The commercial banks, mortgage bankers, insurance
companies, savings and loan associations, stockbrokers,
investment companies, and private investors in Dallas
represent the most important aggregation of financial
groups in this region and form a measure of financial
strength surpassed in few money centers in the Nation.
This financial strength is of utmost importance to the
Southwest, as it provides the funds necessary to develop
new local industries and the means to market securities
to the investors of the Nation. The concentration of
financial institutions also enables southwestern investors to channel their savings into profitable stock
and bond investments or direct loans.
The leading segment of the financial industry is the
commercial banking group. Early in the history of
Dallas, banks were organized to help finance cotton
and other agricultural products. By 1900, Dallas was
recognized as a major financial center in the region;
this recognition was confirmed in 1914, when the
regional Federal Reserve Bank for the Eleventh Federal
Reserve District was established at Dallas.
Dallas bankers have always been among the leaders
in fostering new ways of serving business and the public.
The first oil production loans were granted by banks
in Dallas, and even after nearly 30 years of processing
I
BUSINESS REVIEW
almost $3 billion of such loans, losses have been a
negligible fraction of the total. The Dallas banks have
been vigorous, aggressive lenders, recognizing that
business growth will stimulate greater deposits and
banking growth. Moreover, the competitive spirit
among Dallas banks ' has induced them to offer neW
and enlarged services to both depositors and borrowers.
Capital accounts of the Dallas banks have expanded
at a rapid pace, rising from $60.2 million in 1945 to
$231.3 million in 1958. Bank deposits rose 93 percent
from 1949 to 1954 and have expanded 81 percent
since then. As of December 31, 1958 , the 33 banks in
Dallas County reported total deposits of $2,543 million,
or nearly $400 million more than a year earlier. Dallas
member banks in the Federal Reserve System had $2.3
billion in deposits and $1.2 billion in loans on that date.
DEPOSITS AND LOANS AND INVESTMENTS
ALL BANKS IN DALLAS COUNTY ·
BILLION S OF DOL L. ... RS
8 1LLI ONS OF DOLLARS
3 .0
2.51--I--
3.0
-!-----1I---+--'-----!---L.-+---I-- J,
2.01--I---!-----11---+-,----,.--.- . /-+---I----.j
I. 51--I---!-----1f---+-+-
1.5
"----'----'---1---1 1.0
-+--t--i-~---'--r---+-IO. 5
SOURCE S: Rond Mt NolI, Dantin Dlrlclor),.
F,duol R... r.... Bonk of Dallal ,
Certain definite trends have developed in banking
in the past 10 years, partly as a result of the changing
economy. With branch banking prohibited in Texas,
the growth of suburban shopping centers has encouraged the establishment of a number of new banks. In
Dallas County, 13 new banks have been created in the
postwar period. At the same time, there has been a
sharp growth in the size of downtown banks - especially in terms of capital and, therefore, their ability to
lend large sums of money to one borrower. This increased loan capacity has enabled the Dallas banks to
handle many large loan requests within the city, rather
than by participation with banks in other areas.
Finally, Dallas banks have greatly broadened their
range of loans and investments, both in terms of types
of loans arid geographic location. The banks maintain
an. extensive network of correspondent bank relationShIPS, which expands the influence of the local banks.
Thus, Dallas has become the finanGial center to which
borrowers in an even larger area look for needed funds.
To some extent, this broadening has caused bankers
of other areas to recognize Dallas as the place to get
bank help in participating loans or marketing investments. Commercial banks in this area have become
increasingly active in national money market affairs buying and selling federal funds and participating in
the weekly Treasury bill auctions, as well as in other
Treasury offerings attractive for bank investments.
The expansion of the Dallas Federal Reserve Bank
has kept pace with the growth of its District banks. At
the Read Office in Dallas, there are about 620 officers
and employees. During the past year, a new 5-story
addition to the Reserve Bank building, which will
double the existing floor space, was started to accom~odate the continuing growth of Reserve Bank operatIons. Since 1914, Eleventh District member bank
deposits have risen from $278 million to $10 billion;
and, as measured by member bank deposits and reserves, the Dallas Reserve Bank's place in the Federal
:Reserve System has improved from eleventh in 1939
to fifth in 1958. The rapid growth in capital of the Federal Reserve Bank of Dallas from $6.0 million in 1945
to $20.7 million in 1958 reflects the expansion of
member bank capital and surplus and has lifted the
Dallas Bank to sixth place among the Reserve banks.
Dallas member banks hold about one-fifth of the depOSits, resources, and capital accounts of all member
banks in the Eleventh District.
A second major segment of the financial community
of Dallas is its insurance companies. The development
of life insurance companies in Dallas came near the
turn of the century, but their growth was greatly advanced during the void created by the passage of the
afore-mentioned Robertson Act in 1908. In the following years, a large number of companies were formed,
and, at the present time, 105 legal reserve life insurance companies are head<!juartered in Dallas. Most of
th~se companies are small and have less than $100
Illlllion of insurance in force. In fact, only nine have
mOre than $100 million , and only three have more than
$1 billion of insurance in force. The national life insurance companies began returning to Texas in the 1940's,
and many placed their regional or district offices in
Dallas. It has been estimated that, of the $19.5 billion
of life insurance in force in Texas on January 1, 1957,
the Dallas-based headquarter companies and the regional offices of national companies controlled almost
two-thirds.
. Dallas also is home base to 35 fire and casualty
Insurance companies and has the regional offices of
many large national casualty insurance concerns. The
five largest southwestern fire and casualty insurance
companies are all headquartered in Dallas. The fire
and casualty companies headquartered in Dallas had a
premium income of nearly $132 million in 1957. In
~dd~tion, four of the five largest accident and hospitalIzation companies in the Southwest are based in Dallas.
~he premium income of all accident and hospitalizatIOn IOsurance concerns in Dallas totaled about $110
million in 1957.
Insurance activities are a source of substantial employment and income to Dallas, but, more importantly,
they are a continuing strong source of investment funds.
Nearly $1 billion of investments in mortgages, stocks,
and bonds .is held by the local insurance companies,
and yearly IOcome available for investment amounts to
more than $100 million.
The third large segment of the Dallas financial
industry is the savings and loan associations. The
11 associations had withdrawable shares totaling
$254,471,968 on December 31,1958, reflecting a gain
of $33 million over a year earlier. At the end of 1958
these associations had total loans outstanding of
$261,038,289.
Dallas is also prominent as the home of the Southwest's largest investment-underwriting firms and as the
regional center for dealers in investment securities.
Seven of the Dallas-based brokers are members of the
New .York Stock Exchange. Mortgage bankers and private IOvestors add to the luster of Dallas' reputation as
the financial clearinghouse of the Southwest.
Many of these financial institutions are merely facilitating agents, providing only the service of bringing borrowers and lenders together. On the other hand
.
'
a number of Dallas financIal concerns and private investors alie impOFtant suppliers of investment funds.
From the very large aggregation of both service and
investment institutions detailed above, it is clear that
Dallas holds a commanding position in the Southwest
with respect to a product which is universal in all business activity - money and credit. As the Southwest
grows, financial activities will expand, involving in'S U 5 I N E 5 5 REV lEW 1\
creased responsibility and prudent judgment in handling and investing large sums of money.
MANUFACTURING
VALUE ADDED BY MANUFACTURE
DALLAS COUNTY AND TEXAS
The fourth cornerstone supporting the Dallas
economy is manufacturing, which presently employs
nearly 86,000 workers, or 24 percent of all employment in the county. Wages and salaries paid to Dallas
manufacturing workers in 1957 totaled $365 million,
or nearly 28 percent of the total wage and salary income
of the county citizens.
Manufacturing is not new to Dallas. Even in the
early years, harness making, saddlery, the production
of cotton gin equipment, and food processing were a
vital part of the city's economic life; and Dallas led
[-[.lImated.
the Nation in the first three activities. From the late
F,d,rol R,,,,vI
Dalla •.
1800's to about 1920, several shifts occurred in Dallas
manufacturing activity. The steady decline in the
harness and saddle business was replaced by growth wages reached $290,812,000, or 17.9 percent of the
in certain food processing and apparel manufacturing. Texas total. Comparable data indicate that, by 1957,
This pattern was reinforced in the 1920-40 period. the Dallas share had increased to 18.5 percent, as the
With new apparel producers making sports clothes result of a 46-percent rise in the county's manufacturand women's dresses and with the manufacture of ing payrolls.
work clothes expanding, employment in the apparel
industry more than tripled. At the same time, food
A final measure of the rise in Dallas manufacturing
processors nearly doubled their employment to handle may be obtained by a study of the value added by manthe enlarged output of specialty food items. Early in ufacturing. (This term relates to the difference betweeIl
this period, a major automobile plant was built in the the cost of the materials and the value of the product.)
city. Gradually, Dallas manufacturing began to develop In 1939 the value added by Dallas manufactures
an export status, with apparel, automobiles, machinery, totaled $61,458,000, or 13.7 percent of the comparable
and food being the principal items produced for ex- state figure. By 1947 the Dallas total had risen nearly
ternal sale.
four times to $238,839,000 and accounted for 13.8
percent of the Texas total. The most recent Census of
However, the big gains in manufacturing which Manufactures reports that the value added by Dallas
raised the industry to its present importance occurred manufactures more than doubled from 1947 to 1954,
during and after World War II. Measured in terms of reaching $508,271,000, and that this total was 14.5
employment, manufacturing increased 229 percent percent of the state figure.
from 1940 to 1958, gaining 45 percent in the first 7
These value-added data do not portray the relative
years, 83 percent over the next 7 years, and 24 percent
in the 1954-58 period. The exceptionally large gain strength of the Dallas manufacturing growth since, as
from 1947 to 1954 stemmed mainly from the reactiva- can be seen from the accompanying table, the value
tion of aircraft plants and the growth of electronics added per employee in Dallas is somewhat below the
firms. In each of the periods, the Dallas increase in state-wide average and has gained at a slower pace.
manufacturing clearly outpaced the state-wide gain, The disproportionate rates of growth for employment
as reflected by the fact that the Dallas share of the and value added reflect the contrasts in the major types
state total was only 12.6 percent in 1940 but rose to of industry which have developed in Dallas and in
Texas. in the past 18 years. For example, the value
18 percent in 1958.
added per employee for transportation equipment firms
On the basis of income, Dallas manufacturing in in Dallas averages only $5,500, contrasted with state1947, with a payroll of $97,507,000, was 13 percent wide averages of $19,500 for chemical plant employees
of the state total; in 1954 the county's manufacturing and $11,500 for petroleum refinery operators.
SOUftCES : U.S. IhUIGII 01 th' ClnlU • .
Dankor
I
BUSINESS REVIEW
large new electronics plant and laboratory) have constructed facilities.
VALUE ADDED PER EMPLOYEE, 1939, 1947, AND 1954
Dallas and Texas
Valu. add ed
Number of
Value added by manufaclur.
employees
Yoar
Dallas
1939 ....... 16,267
1947 .•... .. 38,82B
1954 ....... 72,770
per employee
Texas
Dallas
Texas
Dallas
Texas
125,115
242,014
410,364
$ 61,458,000
238,839,000
508,271,000
$ 448,523,000
1,727,476,000
3,501,706,000
$3,778
6,150
6,985
$3,585
7,138
8,533
SOURCE , Uniled Slales Bureau of Ihe Consus.
Industrial development in Dallas County is widely
dispersed but yet concentrated in several industrial
districts. Metropolitan Dallas has led in the establishment of planned industrial districts and now ha~ 17
such districts, with two comprising 1,200 acres apIece.
The older sections are located near the downtown area
and in south Dallas along the railroad tracks near the
Trinity River. The war-born aircraft plants and a .f~w
others are southwest of the city, close to Grand PraIne.
This is also the location of a number of new industries,
including part of the fast-growing boatbuilding industry. Both prewar and postwar wholesale and light
manufacturing industries also are situated along the
Trinity River bottom.
A current addition to the industrial areas of Dallas
County is the rapidly expanding section northeast of
Dallas near the city of Garland. Wholesalers and ele~
~onics, paint, and aircraft manufacturers have built
In this railroad industrial site during the past 8 years.
Another new industrial area is north of Dallas, along
the expressway to Richardson, where a number of
Wholesale firms and a few manufacturers (including a
MANUFACTURING CONCENTRATION
DALLAS COUNTY
ALL OTHER
APPAREL
FOOD
PAPER AND
PRINTING
MACHINERY
TRANSPORTATION
EQUIPMENT
SOURCES I U.S. eunou ot Ihi C.nlul .
F,d.ral ft . .. . ru Bank 01 Dalln.
The most recent change in the manufacturing fields
in Dallas has been the remarkable expansion of electronics producers. Although concealed in the aircraft,
machinery, and instruments categories, the electronics
firms have been responsible for much of the gains in
these groups over the past 10 years. Perhaps more importantly, the future for electronics producers seems
equally bright.
The current picture of manufacturing activities in
Dallas is heavily weighted by three major segmentstransportation equipment, food, and machinery. These
groups account for 59 percent of both manufacturing
employment and value added by manufacture in Dallas
County but only 40 percent and 35 percent, respectively, of the state totals.
The most obvious development in Dallas manufacturing activity in the past 18 years has been the growth
of the aircraft plants. This industry started in Dallas
in World War II, ceased for a short period after the
war, and was redeveloped and expanded in the postwar period. Aircraft manufacturing in 1954 provided
one-fifth of the value added by Dallas factories and in
1958 accounted for about 23,500 workers, or more
than one-fourth of Dallas manufacturing employment.
Of the 1940-58 gain of 61,135 in manufacturing
employment in Dallas, the aircraft companies supplied
37 percent.
Developments at the major aircraft producers in
Dallas during the past year point up the problems of
defense-oriented industries, particularly those wedded
to a single branch of the Armed Forces. The plants
not only are subject to the effects of quick changes in
weapons systems but also are in constant danger of
encountering changes in Government procurement policies, which, almost overnight, may defer or cancel
contracts and stretch out payments. While Dallas aircraft manufacturers have some commercial business,
the vast majority are defense-oriented.
Perhaps more important to the long-run prospects of
this industry are the changes originating in the shift
from the production of manned aircraft to the output of
missiles. Because substantially more engineering work
is required prior to missile production, the composition
of personnel is rapidly moving toward graduate engineers, physicists, and chemists. The assembly line
technique is not suited to missile output; consequently,
BUSINESS REVIEW
I
more skilled, but fewer semiskilled, workeFs will be
needed. In addition, some changes in plant design to
accommodate missile production will call for new construction in this industry.
At present, most Dallas plants are still producing
manned aircraft, but some have entered the missile
field. The effects of the eventually full-scale conversion,
either through prime contracts or through subcontracts,
may mean a slow decline in the total labor force but
a substantial upgrading of the remaining employees.
However, a number of uncertainties connected with
this industry, including defense policy and shifts toward
commercial business, make forecasting of the industry's
prospects quite hazardous.
,Two other important segments of the transportation
equipment industry in Dallas are the boat and automobile plants. Boat manufacturing has become big business in the Southwest, and Dallas County producers
specializing in aluminum and Fiberglas boats have led
the way. As more reservoirs are developed and as
leisure time increases for the expanding population,
recreational industries, including boatbuilding, should
enjoy fairly good growth, though not at the rate evidenced by the gain of more than 100 percent since
1954. A large automobile assembly plant located in
Dallas in 1913 and has expanded operations substantially since then.
Inspecting the changes in employment and value
added for Dallas manufacturers from 1940 to 1958,
one might hastily conclude that the growth of industrial activity in this city is almost entirely due to the
development of the aircraft industry. This is not true.
In fact, the growth of other industries has also been
more rapid in Dallas than in the State. Employment
growth - after excluding the transportation equipment industry and the chemical, petroleum refining,
and primary metals industries, in which Dallas has no
competitive standing - is markedly faster for this
area. Indeed, the Dallas gains in the remaining industries account for over one-fifth of the state-wide increases in the 1947-58 period. Thus, it may be said
that the expansion in Dallas manufacturing has not
been all a matter of aircraft industry growth but, instead, has been rather widespread, with the exception
of those raw material-using industries requiring particular locations, materials, or services not available
in Dallas.
Food processing has always provided a sizable
share of Dallas manufacturing activity, usually 17 to
I
BUSINESS REVIEW
18 percent. Special segments of this industry which are
important in the Dallas picture include meat and dairy
products, candy, and a broad miscellaneous category.
The food-processing industry has shown substantial
growth and may be expected to have further gains,
probably in line with the population trend.
The other broad industry group of major importance
to Dallas is the machinery industry. At present, this
group provides employment for about 15,000 workers,
or 17 percent of Dallas factory employment. The value
added by the Dallas machinery industry was about 15
percent of the county total, according to the latest
census. In contrast, the comparable state percentages
were about 10 percent for both employment and value
added. Of the 1940-58 gain in Texas machinery employment, Dallas plants accounted for about 38 percent, reflecting the rapid expansion of machinery producers in this area.
The machinery industry is customarily split between
nonelectrical and electrical machinery producers. In
the nonelectrical segment, Dallas is heavily committed
to construction, mining, and cotton gin machinery,
with the first two types accounting for the largest gains
in the postwar period. Further growth in the production
of construction machinery is a likelihood for the foreseeable future. The demand for cotton gin machinery
is on virtually a replacement basis in the domestic
market, although a somewhat improved foreign market
may. exist. The production of mining machinery, tied
closely to developments in the oil and gas industries,
will likely follow the trends in those industries.
The electrical machinery industry of Dallas is one
of the fastest growing segments in the entire State.
Dallas producers account for 70 percent of state factory
employment'in this industry. Of particular importance
are the communications equipment plants. With emphasis being placed upon electronics and miniatute
equipment for defense and for some of the newer consumer goods, the future of the industry seems almost
assured . Dallas has a commanding position in thiS
industry in Texas and is one of the stvongest areaS
of the Nation.
Furniture manufacturing also is important in Dallas,
with the area providing about 20 percent of the employment in the furniture industry in Texas and accounting
for about 30 percent of the value added by furnituf.e
manufactures. Household furniture companies domInate the industry in Dallas and have shown real growth
in the postwar period. With population and residential
construction gammg, this industry will probably increase substantially in the future .
The apparel industry, another of the area's major
manufacturing sectors, accounted for 16 percent of
Dallas manufacturing employment in 1940 but currently provides only 10 percent, despite a sharp gain
in the industry over the past 18 years. Dallas apparel
concerns represent about one-fourth of the state-wide
apparel industry and are concentrated in men's and
boys' furnishings and women's and misses' outerwear,
especially sportswear. Problems of comparative wage
Scales, availability of labor at these wage scales, and
the competitive situation in the industry may be limiting factors for future expansion. However, the industry
mainly employs women, some of whom might not work
at all if opportunities were not available in the apparel
plants. Furthermore, the Dallas producers are less
affected by wage problems since their products are
mainly high-fashion clothing or sportswear.
Two other manufacturing industries - pulp, paper,
and products and printing and publishing - are also
important to Dallas. In terms of local manufacturing
employment, the paper industry provides about 3 percent, while the printing group accounts for 7 percent.
The paper industry of Dallas represents more than
one-fourth of state employment in this industry and
about one-fifth of the Texas value-added total for paper
producers. Paperboard containers are the industry's
principal product in Dallas, although a respectable
share of total sales is provided by manufacturers of
paper and other paper products.
The printing and publishing concerns in Dallas,
Which amount to about one-fifth of the state industry,
have shown marked expansion in the past 18 years.
Manufacturing employment in the industry increased
more than three-fourths from 1940 to 1958, or about
25 percent of the total gain in such employment in the
State. Newspapers and commercial printing are the
prinCipal segments of the industry in Dallas, although
lOcal periodicals, books, and printing trade services
are nearly one-half of the state total. In addition to the
large daily newspapers, including one specialized business newspaper, there are a number of periodicals, such
as the oil journals and the Business Review of the
Federal Reserve Bank of Dallas.
The future of the paper and printing industries in
Dallas appears very favorable. Increased use of periOdicals and the general gains in population should
encourage further growth in both industries.
Of the remaining manufacturing industries in Dallas
County, accounting for almost 18 percent of all factory
employment in the area, the primary groups are fabricated metal products ; petroleum; chemicals; stone,
clay, and glass; and miscellaneous manufactures.
Principal plants in these industries include a strongly
developing group of paint producers; a substantial
structural metal segment specializing in tanks, vessels,
and oil field steel shapes; a group of important cement
producers; and several large concerns manufacturing
asphalt, roofing, bricks, soap, and ornamental iron.
In summary, the manufacturing sector of the Dallas
economy is impressive in its diversity and the strength
of most segments. Although the aircraft industry accounts for a sizable portion of Dallas manufacturing,
there are other large and growing segments. Industries
manufacturing electrical machinery, paint, boats, plastics, and instruments appear to have particularly bright
futures, and growth is expected at rates in excess of the
general advance of the Dallas economy. Such industries
as food, household furniture, paper, printing and publishing, and stone, clay, and glass will probably grow
with the population; a few of these industries may
advance at a more rapid pace than the others.
Secondary Economic Features
In addition to the basic economic activities in Dallas,
a number of secondary supports have contributed to
the city's growth and development in many important
ways. These secondary supports can be divided into two
segments: The first, including agriculture, government,
and mining, comprises basic industries; the secondconsisting of construction and transportation, communications, and utilities - is generally considered to be
facilitating agents. Each of these five industry groups
has made an important contribution to Dallas over
WAGE AN D SALARY EMPLOYMENT, DECEMBER 1958, AND INCOME,
1957, FROM SECONDARY ECONOMIC ACTIVITIES
Da ll as County
W AGE AND SALARY
WORKERS
Percont
Activity
Percent
W AGE AND SALARY
INCOME
Amount
of
of
(In thou·
Texes
Percont
of
county
sands of
county
activity
dollars)
tota l
Porcent
of
Texas
activity
Numb e r
total
Agrlculturo!. . • .. .. .. . . .. • • 4,500
Gove rnment ............ ... 30,400
Mining . • • • • • • • • . . • • . . • • • • 8,350
Transportation, communica·
lions, and utilities .... .. .. . 3 2, 450
Construction. • • •• . . . . • . . . .. 2 3,350
1. 1
8.7
2.4
1.5
7.1
6 .7
5,100
110,000
33,500
0.3
8 .4
2.6
0.5
5.2
4.7
9 .2
6.6
14.4
13 .9
149,500
58,100
11.5
4.4
13 .4
8 .5
1 Includes farm propri etor s' employ ment and in com e , with percentag es of county
total (; bos ed on wag e and sa lary and proprie tor components combin ed .
SOURCeS, Toxa s Emp loym e nt Commi ss ion.
f ede ral Rese rve Ban k of Dallas.
BUSINESS REV I EWI
and above the direct employment and income that it
generates.
million of bonds for capital improvements from 1945
to 1958.
AGRICULTURE
MINING
Agriculture, the principal economic activity of Dallas
County in its early years, is still a major stimulant to
many Dallas industries. Farmers throughout the world
use Dallas-produced cotton gins, and many southwestern farmers provide raw materials for the important
local food products industry. Moreover, farmers and
ranchers are a significant part of the market for many
products distributed from Dallas, such as farm implements, apparel, and automobiles. Modern farming requires large amounts of credit, and Dallas banks help
to meet this demand by both direct loans and indirect
participations.
In terms of commercial operations, the number of
farms in Dallas County has steadily declined as suburban growth has required more land. In 1954, there
were 2,689 farms in Dallas County, or 1,674 fewer
than in 1945. Land in farms has decreased more than
100,000 acres, while the value of crops has remained
about the same. Cotton is still the principal crop, but
production in 1958, at about 7,500 bales, was substantially lower than the 35,000 bales produced in 1940.
GOVERNMENT
Government activities have a considerable impact
upon Dallas through large purchases of military goods,
including aircraft and electronic equipment. Expenditures for highways, airports, schools, and civil defense
- coupled with such indirect benefits as farm price
supports, aid to education, institutional grants, and oldage assistance payment5 - constitute a measuraJbly
significant portion of government spending and income
in Dallas County. The Federal Government was instrumental in the original development of the Dallas aircraft industry and continues to be its principal customer. In addition, 119 offices of Federal Government
departments and agencies are located in Dallas; many
of these offices have jurisdiction over a broad section
of the Southwest.
Local government activity, of course, covers a wide
range of functions, including the construction and
maintenance of streets, schools, water and sewer lines,
airports, and a host of others. To handle these tasks for
a rapidly expanding population, the budget of the city
of Dallas rose 195 percent from 1948 to a 1957 level
of $55,708,216. Taxpayers authorized more than $250
I
BUSINESS REVIEW
The principal minerals in Dallas County are limestone, sand, gravel, stone, shale, and clay. The value
of mineral production in this county totaled $17,818,945 in 1957, or less than one-half of 1 percent of the
state total.
Nevertheless, mining is indirectly responsible for a
sizable part of the growth of financial, manufacturing,
and trade activities in Dallas. Oil and gas producers are
heavy users of credit, and Dallas banks pioneered in
granting such credit. Dallas is the headquarters city for
many producing companies, geological concerns, and
drilling and oil field contractors. Also, Dallas is home
base for a number of oil field equipment producers who
operate on a national or even international scale. The
Dallas location and its ready access to other parts of
the Nation make this city an ideal spot for top-level
conferences and oil association conventions.
TRANSPORTATION, COMMUNICATIONS, AND UTILITIES
Transportation facilities have always been a major
factor in the economic life of Dallas, aiding its distribution and manufacturing activities and providing the
means for getting to and from the city for meetings,
conventions, and conferences. Dallas has consistently
led in the growth of transportation facilities from the
early wagon trails and railroads to the modern highways and airlines. Air travel has become one of the
fundamental factors enabling Dallas to compete in the
furniture, fashion, and gift markets of the Nation.
Dallas is currently served by nine rail systems, six
passenger air carriers, five bus lines, and 37 commoncarrier truck lines. Though railroad passenger service
is declining, the freight business has been generally well
maintained. The railroads are also important developers of industrial acreage and have made real contributions in attracting new industries to this area.
Airline service to and from Dallas is one of the major
assets of the city. Air routes certificated to Dallas lead
in all directions from the city. With competitive service
to the North and East, the Dallas air traveler has a
choice of several de luxe, nonstop flights to the principal cities in those areas. A hearing to provide similar
competition on southeast and westbound flights frorn
Dallas is currently under way. As a major air terminUS,
Dallas ranks tenth in the Nation in the number of ern-
planed passengers and eighth for both aircraft departures and airfreight tonnage.
The Dallas Love Field airport was purchased by the
city in 1928 and has been repeatedly modernized and
enlarged. Runways have been lengthened, and the
latest navigational aids have been installed. The new
$8.5 million airport terminal that opened in 1957 has
moving sidewalks and a capacity of 26 simultaneous
loadings of aircraft of the DC-7 type. With a pleasant
modern exterior and interior, the terminal was built
to handle traffic for many years to come; however, the
very rapid expansion of air travel to and from Dallas
is already absorbing space which had been reserved
for future growth.
Three of the major airlines constructed large new
hangar and service areas during the past year. There
are also excellent facilities for private, itinerant, and
business flyers at Love Field and at a number of other
airfields scattered throughout the county.
Intercity highway connections to Dallas are among
the best in the Nation, but surfaces and capacity are
not good on certain highways. Nevertheless, construction authorized by a new highway program is rapidly
improving these roads, and multilane freeways eventually will be available for travel in any direction from
ballas. The new interstate Federal highway program
includes four major highways leading into and out of
this area and two highways terminating in Dallas. In
late 1958, over $23 million of new interstate highWay improvements was under construction in Dallas
. County.
Within the city, traffic problems have been a serious
concern. A master plan of street development, proViding inner and outer loops around the city and 6-lane
diVided freeways radiating from the downtown hub,
has been adopted. A major step in implementing the
plan was taken when Dallas citizens recently voted a
$22 million bond issue to start construction on several
key segments.
Intracity transportation is essentially by bus or pri~ate automobile in Dallas, with automobile transporta-
!Ion steadily increasing while transit company patronage
IS deClining. Dallas transit patronage has fallen from
105 million passengers in 1946 to 41.7 million passengers in 1958. The problem of maintaining a healthy
PUblic transportation system is especially difficult in
ballas because of the sharp suburban growth. Better
bUses with air conditioning may retard the patronage
decline, but improved thoroughfares and parking facilities are encouraging the use of private automobiles.
The solution to this problem may eventually require
some form of city subsidy, tax exemption, or perhaps
even municipal ownership; but, whatever the cost,
Dallas cannot afford to be without an efficient transit
system.
Communications facilities are uniquely important to
Dallas as the means of transacting business and financial arrangements throughout the Southwest and other
parts of the Nation. Wire-transfer and teletype facilities enable Dallas banks and securities concerns to
keep in touch with the market centers of the East and
effect quick transfers of funds and investments.
The city is the regional headquarters of the telephone
system and ranks ninth in the Nation in the number
of teletypewriter connections. There are nearly 390,000
telephones in use in Dallas County. The city is also the
regional center for commercial telegraph operations.
Network television is serviced through Dallas by coaxial cables from Kansas City and is transmitted to
other major Texas cities by cable or radio relay.
Dallas utility concerns perform functions that are
vital in any large urban center and do a few which
provide a special impetus to the growth of the Dallas
area. In addition to handling the gas and electricity requirements of the city efficiently, the utilities actively
work toward attracting new firms to the area and make
special arrangements to meet any unusual needs.
The city of Dallas is served by one electric company
and one gas utility, with customer connections totaling
more than 200,000 for each. The use of both electricity
and gas has risen sharply over the past few years because of the increasing amount of air conditioning, the
steady gain in the use of small appliances as a result
of the higher standard of living, and the population and
industrial expansion in Dallas. Electricity consumption
in 1958 reached nearly 2.6 billion kilowatt-hours, or
253 percent above the total 10 years ago. Gas consumption rose about 4.3 percent in 1958 to a new
record of almost 38 .6 trillion cubic feet.
The electric company boosted its capacity from 163,000 kilowatts in 1945 to 956,000 kilowatts in early
1959. It has plans for further additions totaling 350,000 kilowatts by 1962. The company is a part of a
larger utility system that, in turn, is a member of the
North Texas Interconnected Power Pool, from which
alternate supplies of power and peaking power are
available.
BUS I NESS REV I Ewl
GENERATING CAPACITY AND SALES
DALLAS POWER AND LIGHT COMPANY
GE NERATIN G CAPAC IT Y
S ALE S
BILLION S OF KILOWATT HOUR S
-
T HOUS AND S OF KI LOWATTS
1,20 0
1,00 0
v·
tf
80 0
2 .5
2.0
!
KILOWATT-HOUR SALES
I
60 0
3 .0
-. /1- I. 5
~l/'~~I
40 0
200
-. .......
o
I 920
1924
I'"
1928
1932
-
1/·..···,
···j .... ···1l... ~····
I" GENER~TlNG
~y
1936
1940
1944
.0
0.5
CAPACITY
1948
1952
o
1956
1958
SOUR CE : Da llal PO WIt and Li ght Compony.
The gas company has steadily provided a margin of
safety in its operations so that only on the coldest days
is there any curtailment of industrial usage. Contracts
specifying interruptible service are standard with most
gas companies and are another margin of safety for the
residential customer. The company maintains more
than 2,200 miles of gas mains in Dallas.
CONSTRUCTION
The construction industry is important to the physical development of Dallas, and the city's attractive
appearance bears full testimony to the industry's effectiveness. To some extent, this industry is also a basic
component of the local economic structure through
its export of goods and personnel for construction jobs
outside the county. Profits from such jobs constitute
another source of income for Dallas citizens, The construction industry also provides a major source of commuter employment in Dallas.
1950, of which 59,100 were single-family units, Balancing this new construction, losses, and conversions,
there was a net gain of 61,000 units, or 31 percent,
from 1950 to 1956. Since 1956, Dallas has added another 22,000 units by new construction, but losses by
demolition, fire, merger, and other means have cut the
net gain to about 16,000 units.
Residential growth in Dallas has been widespread,
with postwar developments in practically every section .
The suburban sections rising most rapidly in the past
few years have been in the northeast to northwest quadrant. Of particular note have been the recent projects
in the White Rock-Garland and Richardson areas. At
the same time, there has been a steady upgrading of
many older homes in the more established sections
of the city, Furthermore, substantial new apartment
construction has been under way in these sections, as
well as in areas nearer to downtown.
Nonresidential construction has been very strong in
the Dallas area, especially the construction of downtown office buildings. In the 1947-58 period, 45 major
new office buildings were constructed, 30 of which
were in the downtown area. These 45 buildings accounted for nearly 6.5 million square feet. Current
construction of new office buildings will provide aD
additional 3 million square feet.
Construction of new schools has been very noticeable in the past few years. From 1952 to 1957, the
CONSTRUCTION CONTRACTS AWARDED
DALLAS COUNTY AND TEXAS
INOE,...
" _.-----.---r_,.-:.,:II.~:;VA:::.LU:;AT~'O~
N 0..:.:0I - , - - - - . _ . - - . - - - - ! I HOEX
••
'.,:.:1
New construction in Dallas has been quite strong
throughout the postwar period, and since 1954 the
dollar volume of building has averaged more than
double the 1947 level. In 1958, total building contract
awards were valued at about $255 million, of which
$147 million was let for residential construction and
$108 million for nonresidential building. Total building awards in Dallas were 17 percent of awards in the
entire State.
Residential building has been very active to keep
pace with the expanding population. The 1956 National Housing Inventory for Dallas County reflects
construction of about 75,000 new dwelling units since
I
BUSINESS REVIEW
10011-~~~~..l.~-..L..l.--=--=-=-=-:=~LJ,00
1946
1948
S OURCE : F.W. DodQ' Corpotallon.
1950
1952
1954
1956
1958
Dallas Independent School District constructed three
new high schools, four junior high schools, and 42 elementary schools. Nine more schools will be opened
during the 1958-59 school year. A number of college
and university buildings were also built in the 1952-58
period, including the initial buildings for the new
University of Dallas.
Problems
Dallas has a strong, diversified economy based upon
a good balance of important manufacturing and non~anufacturing segments. The city is an attractive place
In which to work and live, with its cultural, refined environment complementing the dynamic business actiVity of the area. The leadership of Dallas is one of the
city's prime assets, and the plans that it has drawn for
the future of "Big D" reflect an abiding faith in the
city's growth potentials.
Perhaps the best evidence of the strength of the Dallas
economy is the mild impact of the recent recession.
New records were evident in 1958 in construction; employment; bank deposits, loans, and resources; and even
certain manufacturing industries, notably electrical
machinery and chemicals. Although there was some
slowing in the rate of establishment of new businesses,
Dallas accounted for more than one-fourth of the new
businesses opening in Texas dl:lfing the past year.
Indeed, there are only a few black clouds on the economic horizon for Dallas, and even these may prove to
have silver linings. In terms of the main structural supports of the Dallas economy, uncertainties exist about
only wholesale trade and particular manufacturing segments. The future of Dallas as a service and financial
center seems as bright as its illustrious past. Certainly,
the interconnected web of financial institutions and relationships is likely to gain further strength.
Wholesale trade activities have been changing
rapidly. The private wholesale establishment has been
generally losing out to company warehouses. Dallas has
kept pace with this trend; but, if population and trade
c.ontinue to grow in the Southwest, further decentralizahon of wholesale, warehousing, and distribution points
may occur. Thus, wholesale trade in Dallas may
~ovide a smaller share of employment and income.
owever, the decentralization may have some advan~~~es, such as more efficient distribution and the possiIhty that Dallas could become the manufacturing
Center serving branch warehouses throughout the
SOuthwest.
A second disturbing element in the Dallas economy
is the reliance upon the defense-dominated aircraft industry. In addition to the instabilities inherent in Government defense work, another problem for the aircraft
industry is adjusting to the shift from manned aircraft
to missiles. This shift can mean extensive changes in
the composition of aircraft industry employment, as
well as more rapid changes in the types of production.
Short of a real war in the near future, assembly lines for
manned aircraft may become less important. Dallas
needs to give real consideration to how these changes
will affect the employment and income levels of the
city and how to bolster its manufacturing segment with
industries in which a growth pattern is more certain.
Perhaps the suggestion concerning the manufacture
of products to serve regional distribution centers may
have another facet of value to Dallas. To reduce the
reliance upon the aircraft component, Dallas could
more actively seek manufacturers of consumer products, especially those who are able to take advantage
of the special skills available in the Dallas labor force.
This development could mean attracting manufacturers of household appliances (particularly small electric appliances) , plastic products, and electronic
devices. With a concerted effort, the Dallas area might
become the new home for many consumer goods manufacturers, whose products and payrolls would add
further economic stability to this area.
A third group of problems centers about the internal
changes necessary to modernize Dallas to meet the demands of a growing populace. High on the list of such
?ifficulties is the need to handle traffic and street parkmg problems and the connected problem of intracity
public transportation. Solutions to these problems will
require the best efforts of the leaders, city officials, and
general public of Dallas.
Other internal problems relate to the potentials inherent in the shifting center of the downtown area; the
need for better streets, sewers, and water facilities in
the newly annexed areas; and the pressing need to rehabilitate. the scattere~ areas of substandard housing.
Here agam, the combmed efforts of individuals businesses, and the city government will be necess~ry to
overcome these problems. Some progress has been
made, especially with respect to the master plan for
street and thoroughfare development, but much remains to be done.
Finally, there is a problem of intergovernmental
relations between Dallas and its neighboring cities and
BUSINESS REV I EW
I
other governmental units within Dallas County. Although numerous steps have been taken, such as the
formulation of the Dallas County League of Municipalities, the Metropolitan Advisory Committee, and the
Trinity Water Committee, the accomplishments thus
far are meager in relation to the problems of joint concern that need aggressive action and require the cooperative efforts of the leaders of all the cities involved.
into direct physical contact with each other, thus requiring, in the most positive terms, ·an efficient working
agreement between the leaders and officials of each
city and governmental unit. No longer can either Dallas
or its neighbors afford to live and act as if each city
were in a different state. The area approach to its common probl€ms would yield a harvest of good will and
more effective solutions.
Eventually, action must be taken on joint facilities,
There is a steadily increasing eommunity of interest
in industrial development, particularly among Dallas, economic and traffic planning, and adjacent-area zonGrand Prairie, Arlington, and Fort Worth and between ing. To achieve the results which the people of this area
Dallas and Garland. In fact, the entire area embracing have a right to expect in these and other fields of muDallas, Tarrant, Rockwall, Kaufman, Ellis, Johnson, tual interest requires immediate recognition of the fact
and Denton Counties is becoming a closely knit indus- that the area will progress at a more rapid rate if the
trial complex. Placement of new industrial plants in cities work together. Perhaps an intercounty committee
any of these seven counties could be considered a mark of leaders from each city and county government could
of growth for the Dallas area. Indeed, Dallas leaders provide the necessary leadership for a unified approach.
have been working just as hard to promote the growth
None of the problems cited above are insoluble, and
of new industries in suburban areas as in the city proper.
with the best efforts of the city, aU can be handled in
Problems of traffic congestion, available parking space,
a satisfactory manner. Dallas and its leaders have
land costs, and many others make a suburban location
shown a capacity for meeting all challenges to the city's
increasingly attractive both to the prospective plant
growth and may be expected to do so in the future. "Big
and to Dallas.
D" of tomorrow can be an even more fascinating, prosThis industrial growth and the suburban residential perous city than the one of today - its economic and
developments are bringing the major cities of this area cultural potentials are outstanding.
This is the second of a series of articles on the four largest cities in the Eleventh
Federal Reserve District -
Houston, Dallas, San Antonio, and Fort Worth . Additional
copies of this article may be obtained by addressing a request to:
Research Department, Federal Reserve Bank of Dallas
400 South Akard Street, Dallas 2, Texas
I
BUSINESS REVIEW
-
BUSINESS
BUSINESS, AGRICULTURAL, AND FINANCIAL CONDITIONS
Department store sales in the
Eleventh District during March,
boosted by an early warm spell
during the busy period immediately before Easter, rose
more than seasonally over February and were well
above March 1958. The gain over a year ago was
larger than expected. Inventories on hand at the end
of March were higher than either a month earlier or
a year earlier. New car registrations in the District's
four largest metropolitan areas scored substantial
year-to-year and month-to-month increases.
Employment in the nonfarm sector of the south:vestern economy showed a large seasonal rise dur'~g March, led by gains in manufacturing, construchon, and trade. Available data indicate a corresponding improvement in unemployment. Industrial
Output in Texas registered a sizable advance during
March.
Rains and cool temperatures have retarded develoPment of crops in eastern areas of the District. Ad-
ditional moisture is needed in some western sections
for crops and pastures. Winter wheat production in
the District states is estimated to be below the outturn
last year. Livestock remain in fairly good condition
in most sections.
Construction trends continued strong in the District
states. The value of contract awards during February
gained 27 percent over February 1958.
Although demand for petroleum products declined
significantly in March. and early April, refinery runs
remained high. Crude oil production declined seasonally, but stocks of refined products advanced
more than seasonally. Imports of refined products
turned downward.
Loans, investments, and deposits at weekly reporting member banks in the District rose to higher levels
between mid-March and mid-April. Member bank
reserve balance~ declined moderately in March, but
aver?ge borrowings from the Reserve Bank were approxImately unchanged from the preceding mont,hly
average.
-----------------------------------------------------------Eleventh District department
store sales in March, favored by
warm, fair weather during the
normally heavy buying season
immediately preceding Easter,
rose 10 percent above sales in March 1958. The seaSOnally adjusted sales index, which includes an allowance for the varying date of Easter, reached 165 perCent of the J.947-49 average in March. This is well
~bove the previous high of 159 for the month, recorded
'n 1956 and 1957, and compares with 154 for March
last year and 162 in February. The fact that Easter
came 1 week earlier than in 1958 would have ac?oUuted for a year-to-year increase of about 2 percent
In March sales this year. The substantially larger gain
Was mainly due to the combination of an early warm
SPell and the opening of new stores. Cumulative sales
for the first quarter of 1959 were 10 percent ahead of
sales during the same period last year.
As usual during the Easter season, soft goods sales
were responsible for the increase in total sales at District department stores. Substantial year-to-year gains
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
Eleventh Federal Reserve District
(1947·49 :::1100)
SALES (Daily average)
Date
Unadjusted
Seasonally
adjusted
1958, March ... .. ...
1959, January.......
February... • . •
March. . •• . . . .
137
133
126
150p
154r
168
162
165p
r -
Revised.
p -
Preliminary,
STOCKS (End of month)
Unadjusted
169r
148
163
176p
Seasonally
adjusted
161r
168
168
167p
BUSINESS REVIEW
I
DEPARTMENT STORE SALES AND STOCKS
(Preliminary percentage change in retail valu e)
STOCKS
(End of month)
NET SALES
Mar. 1959 from
Area
Total Eleventh District . .. .. . . . . ... .
Corpus Christi . ..... . .......... ...
Dallas .•... ............. . . ... •. .
EI Paso ..... . . .... .......... .. ..
Fort Worth • •. ~ .. . ........ . ... . ..
Houston • • •••• .. •.. .. •. •..••... •
San Antonio . ............ . .. .. ... .
Shreveport, La . . •............ ... .
Waco •• ... . .... . . . ... ... . .. ... .
Other cities . ............ . .......
Feb .
1959
March
1958
29
32
29·
22
26
29
40
31
33
27
10
8
17
8
14
4
6
Mar. 1959 from
3 mos. 1959
comp o with
3 mos. 1958
10
8
8
8
6
3
12
13
5
7
13
5
11
10
12
8
10
10
13
13
11
16
14
Feb.
1959
March
.1 958
4
3
10
4
- 1
5
3
7
2
4
S:ALES AT FURNITURE STORES AND HOUSEHOL·D APPLIANCE STORES
(Percentage change in retail valu e)
March 1959 from
- - - -- - - 3 mos. 1959
compo with
Line of trade
February
March
by area
1959
1958
7
-18
16
12
5
14
9
2
3
12
5
-15
22
3
20
20
-3
5
4
-7
36
27
50
30
86
65
FURNITURE STORES
Total aeventh District . . . • . . • • • . . • • . . . • . •
Amarillo. ..... .. .. . . ............ . .....
Austin.............. ...... . ...... ......
Dallas........ . ....... ................
Houston. . . . . . . . . . . . . . . . . .. . . . . . . . . . . .
lubbock.......................... .. ..
San Antonio. . . . . . . . . . . . . . . . . . . . . . . . . . .
Shreveport, la.. . . . . . . . . . . . . . . . . . . . . . . .
Wichita Falls. . . . . • . . . . . . . . . . . . . . . . . . . .
Other cities. . • • .. . . .. . . .. . . . . .. • . . .. . .
HOUSEHOlD APPLIANCE STORES
Total Eleventh District. • • . . . . . . . . . . . . . . . .
Dallas.. . . . . ... .. .. . . ........ . .. .. . ...
' 3 mos. 1958
9
1
5
10
3
6
22
3
were registered in clothing sales; sales of women's and
misses' dresses rose 21 percent, and men's clothing
sales were up 19 percent. Good gains also occurred in
sales of women's and misses' accessories and silverware
and jewelry, which rose 13 percent and 12 percent,
respectively. Partially offsetting decreases registered in
the hard goods lines were in sales of furniture and bedding, down 8 percent; radios, phonographs, and musical equipment, down 16 percent; and major household
appliances, down 22 percent.
Department store inventories in the District at the
end of March were up 8 percent from the end of February and 4 percent from March last year. New orders
placed for goods during the month rose 30 percent over
a year earlier, and orders outstanding advanced 33 percent. These substantial gains, coupled with the rise in
inventory levels at the end of March, seem to inclicate
that the stores are optimistic about sales prospects in the
late spring and early summer.
Registrations of new cars in the four largest metropolitan areas in the District during March rose 45 percent over the small total a year ago and 16 percent over
the short month of February. In the individual areas,
I
BUSINESS REVIEW
the year-to-year gains were 20 percent in San Antonio,
43 percent in Dallas, 50 percent.in Houston, and 62
percent in Fort Worth. Cumulative registrations for the
first quarter of 1959 increased 21 percent over the
same period in 1958.
Growing conditions over much
of the District during the past
month showed considerable variation. Precipitation was heavy in
eastern sections; in western regions, rainfall was generally light and, in some areas,
critically short. Relatively cold temperatures have retarded crop development and have slowed seed germination. Heavy downpours washed out some young
crops in upper coastal and south-central counties of
Texas, and replanting will be necessary. Rains have delaye.d completion of corn planting but were helpful to
earlIer-planted corn. Precipitation was too heavy for
optimum growth of rice along the Gulf Coast.
Sorghums in central and southern areas of the District have emerged, and see cling is well advanced in the
Blacklands. South Texas cotton fields are making rapid
growth, and sufficient moisture is available in most late
areas to assure seed germination. In New Mexico and
Arizona, cotton planting is under way but is makiIlg
slow p:ogress ~ecause. of cool temperatures. Dry-Ian.d
wheat m the HIgh Plams of Texas and New Mexico lS
developing rapidly, following general rains about midmonth: In the Lo~ .ROlling Plains, precipitation has
been lIght, and addItlOnal moisture is needed to maintain development of the crop. Production of winter
wheat in the District states is placed, as of April 1, at
129,681,000 bushels, or 34 percent less than the excellent crop last year but 25 percent above the 1948-57
average. AI~ of the District states except Louisiana
showed declmes from the year-earlier levels.
Movement of winter vegetables has remained active
in most sections of south Texas, despite delays as a
WINTER WHEAT PRODUCTION
Five Southwestern States
(In thousands of bushels)
==========================================~~
1959
Indicated
Average
____Ar_ea___________A~p~ril~I_______1~9~58~____~1~9~48~-~5~
t~~i~~~~: :::: :: ::: .' .' .' .' . . .' .' .'
3,192
3,904
903
1,092
672
'806
~=:
New Mexico .... . . . . • • . . . . . . .
O kl ahoma ....... .. .... '" . .
Texas.. .... .. .. .. .. .... .. ..
2,730
75,510
47,157
3,724
11 5,440
73,040
1,652
64,925
35,35 8
Total .. ................ . ..
129,681
196,7 80
103,644
~~~~~~------------------------~~--1
Short. lim e average .
SOURCE : United Stot es Depar tm ont of Agricu lture.
:esult of rains. Onions, in particular, have been delayed
early areas, and dry weather is needed to permit resumption of harvest operations. However, north Texas
onions are in good condition, and considerable acreage
has been seeded to onions in the Panhandle. The acreage of commercial vegetables for spring harvest in
Texas is placed at 77,500 acres, or 3 percent below the
harvested acreage last year and 21 percent below the
1949-57 average. The decline from a year earlier is
largely due to reduced plantings of cantaloupes, cucumbers, and late-spring onions.
CONDITION STAT ISTICS OF WEEKLY REPORTING
MEMBER BANKS IN LEADING CITIES
In
Eleventh Federal Res e rve District
(In thousands of dollars)
April 15,
1959
It em
Comm ercia l and industria l loans. . ......... . ..
Agricultural loans ••• .•... .. . .............. .
loans to brokers and deal ers in securitios . .....
Other loons for purchasin g or carrying securiti es .
Real-estat e loans .•. . .. ...... . . ... .. ... ... .
Loans to banks .••. ..•.•.••.. . .•.•.......•.
All other loans . . .........•............... .
Gross loans . ... ........................
Less rese rves and unallocated charge-offs ••
. Pasture and range feed prospects continue favorable
Net loans ..............................
U. S. Treasury bills..................... '. .. .
Prices received by District farmers (as evidenced by
Texas midmonth prices) during the first quarter of
this year were 5 percent above those in the comparable
period a year ago. Prices for crops averaged 6 percent
higher, and those for livestock were up 4 percent.
Other securities ... ... . .... .. .. .... .... ....
Tota l Invostments • •.•.. . .••...••..•..••..
Cash items In proce ss of collection . ..• . ... ....
8010nces with bonks in the United States . ......
Balances wi th banks In foreign countries . . .. ...
Currency and coin . .. ............ .. .. .. . .. .
Reserves with Federal Re serve Bonk .... .. .....
Oth er assets. . .• . •...• . .. .... .............
97,653
308,079
908,467
350,210
127,908
269,233
918,088
346,870
71,272
292,454
908,923
279,987
1,738,891
517,706
468,433
1,582
48,034
574,096
168,562
1,710,698
499,380
466,904
1,695
48,553
613,185
173,983
1,669,082
417,577
490,312
1,508
46,410
599,254
178,894
---
--6,312,680
-6,301,544
6,033,823
Individua ls, partn erships, and corporations... .
United States Government . .. . .... ... ..• . .
States and political subdivisions . ...........
Banks in the United States••••. .. . .........
Bonks in foreign countries . .. . ..... . . .... ..
Certifled and officors' checks, etc .•... .
2,939,386
119,268
242,816
1,003,520
16,270
7 1,939
2,945,597
88,030
260,259
974,300
15,463
92,108
2,800,920
145,451
206,829
1,030,604
16,686
67,951
Total demand deposits .... • .......... ..
4,393,199
1,087,512
7,130
421
178,847
1,847
961,878
12,125
421
208,292
2,383
TOTAL ASSETS ... ... . ...... .. ........
LIABILITIES AND CAPITAL
Demand deposits
••••
Time deposits
Individuals, partnerships, and corporations....
United Stat es Government • .•.......... . ..
Postal savings • . . ......
States and political subdivisions • ...... ... ..
Banks In the U. S. and foreign countries .. .. . .
0
•••
•
•
••••
0
••••••
Total time doposits . •.•................
Bills payable, red iscounts, etc .. •. . .......... .
All olher liabilities ........... ..............
Total capital accounts . ...
0
•• ' 0
••••••••••
0
0
••
TOTAL LIABIlITIES AND CAPITAL. •.• . ...
1,095,093
7,130
421
187,916
1,920
--1,292,480
--5,685,679
34,800
67,386
524,815
--6,312,680
-4,375,757 4,268,441
--- ---
-- --1,275,757 1,185,099
5,651,514
57,806
70,797
521,427
--5,453,540
14,500
85,325
480,458
-- --6,301,544 6,033,823
RESERVE POSITIONS OF MEMBER BANKS
E(eventh Federa l Reserve District
(Avo rag es of dal ly Agures. In thousands of dollars)
March
1959
February
1959
March
1958
$ 554,321
548,479
5,842
17,165
-11,323
$ 561,900
552,473
9,427
17,175
-7,748
$ 549,479
542,514
6,965
780
6,185
••
455,987
409,540
46,447
3,812
42,635
464,323
416,155
48,168
3,983
44,185
455,338
396,339
58,999
1,14 1
57,858
Res erve balances . o • • • • • • • • • • •
Required reserves • •........
Excoss reservos . . ..... ... ..... . . .
Borrowings •• .................
Free reservos . ..•
1,010,308
958,019
52,289
20,977
31,312
1,026,223
968,628
57,595
21,158
36,437
1,004,817
938,853
65,964
1,921
64,043
Item
RESERVE CITY 8ANKS
Rese rve balances... . . . . . • . . . . . . . .
Required reserves • .. . ..
Excess reserves . . .. . . .••. . •. .. . ..
Borrowings . . ................... .
Free reserves . ........ . .•.. ......
0
•
•••
•••
••
COUNTRY 8ANKS
Reserve balances . •.. ...
Re quired rese rves . .. . ........
Excess reserves . .• •....
Borrowings • ..... .. . .... ... .. . ...
Free reserves.
0
•
0
•••
•
•••••••
0
0
0
••••••
•
0
••
••••••
••••••••
MEMBER 8ANKS
0
0
Investments at the weekly reporting member banks
also rose between March 18 and Apri115, reflecting to
---2,844,297 2,835,931 2,675,643
48,921
48,785
44,857
-- --- --2,795,376 2,787,146 2,630,786
--- --- --74,482
48,599
116,446
U. S. Treasury certiflcates of indebte dn ess ... ...
U. S. Treasury notes .... ... .. . . ... .. ...... ..
Total deposits ......................
Loans at weekly reporting mem"('~""":""""~~" .,..............%".....~.....
ber banks in the District, which
fY <f ". \.[Jf.
~ \
~I.'
i FI N ANC
~ ~ have been rising since the sum\.~t <!:{u, -{~,f...1;.
0«/ mer of last year, showed a fur.". ". ""~. ". . . .",, "''' ' ' ''''''''''''''''''''''
ther gain during the 4 weeks
ended April 15. Exclusive of interbank loans (which
deClined $7 .8 million), gross loans expanded $16.1
l11illion during the 4 weeks. Consumet-type loa.ns, as
reflected in the "all other loans" category, contnbuted
the principal expansive influence o.n loan ~ccounts .
These loans have been rising conSIstently smce late
OctOber and the latest 4-week increase amounted to
$9,4 million . Business loans also continued to rise between March 18 and April 15, but at a slower rate.
l{eal-estate loans and loans to finance securities transactions registered moderate gains, but agricultural
loans declined nominally.
$ 1,690,695 $ 1,687,638 $ 1,5 23,801
35,691
35,724
28,931
21,721
31,996
21,783
185,569
183,944
177,669
221,543
219,434
202,212
14,693
22,458
74,324
674,385
664,950
636,710
U. S. Government bonds (Inc. gtd. obligations)...
0
Cash receipts from farm marketings in the District
states during the January-February 1959 period
alnounted to $563 million, whieh is 1 percent under the
year-earlier level. A 3-percent decline in crop receipts
~ore than offset a 2-percent increase in livestock and
lIvestock products receipts.
Ap ril 16,
1958
ASSETS
In most sections of the District as a result of widespread
Spring rains. However, additional moisture is needed in
the Trans-Pecos area and in sections of New Mexico
and Arizona to promote the development of range forage. Livestock are in good condition, although suppleInental feeding is necessary in some areas.
March 18,
1959
0
0
0
•••
••
•••••
•
••••
0
•
•
••
••••
BUSINESS REV I EW
I
NEW MEMBER BANK
The Northwest National Bank of Dallas, Dallas,
Texas, a newly organized institution located in the
territory served by the Head Office of the Federal
Reserve Bank of Dallas, opened for business April 6,
1959, as a member of the Federal Reserve System.
The new member bank has capital of $200,000, surplus of $200,000, and undivided profits of $100,000.
The officers are: F. M. Holt, President, and Tom J.
Hardin, Vice President and Cashier.
NEW PAR BANK
The Castroville State Bank, Castroville, Texas, an
insured nonmember bank located in the territory served
by the San Antonio Branch of the Federal Reserve Bank
of Dallas, was added to the Par list on its opening date,
, April 2, 1959. The officers are: Bernard Fitzsimon,
President (inactive); Walter A. Ulbricht, Executive Vice
President and Cashier; Ralph l. Tschirhart, Vice President (inactive); and Frank Ducos, Assistant Cashier.
a large extent bank subscriptions to the Treasury securities offered in late March.
Average reserve balances maintained by member
banks in the Eleventh District declined $15.9 million
during March. Required reserves also declined, but by
a smaller amount. Consequently, excess reserves were
moderately smaller in March than during the preceding
month. Average member bank borrowings from the
Reserve Bank, at $21.0 million, were approximately
unchanged from the February level.
CONDITION ·OF THE FEDERAL RESERVE BANK OF DALLAS
(In thou sands of dolla rs )
Item
April 15,
1959
March 18,
1959
April 16,
1958
March 18 and April 15 - a seasonal occurrencebut on the latter date were 7.5 percent above the yearearlier level.
Trends in District petroleum activity were mixed in early April.
Demand was declining, but refinery runs were holding at a high
level. Texas crude oil production
is scheduled for an increase in May.
Unusually warm weather caused demand for major
petroleum products to decrease more than seasonally in
the 5 weeks ended April 10. Distillate demand declined
26 percent. Nevertheless, total demand for petroleum
products, averaging 7,950,000 barrels per day, was 8
percent above a year earlier. Demand for distillate in
March and early April was 8 percent higher than a year
ago, and gasoline demand was 5 percent higher.
Despite the decrease in product demand, refinery
operations continued at a high rate through the first
part of April. Crude runs to District stills, which averaged 2,264,000 barrels per day, were 9 percent more
than in April 1958. Refinery runs customarily decline
in April in the District and the Nation.
Lower demand and continued heavy crude runs to
refineries contributed to the 2-percel1t increase in stocks
of refined products during early April. Major product
stocks, at 370,262,000 barrels on April 10, were alsO
2 percent above the year-earlier level. Gasoline stockS
appeared to be particularly high at 214,594,000 barrels
on April 10, or 808 ,000 barrels over a year ago. In
contrast, crude stocks declined slightly to 253,854,000
barrels on April 11.
Crude oil production in the District averaged 3,158,
000
barrels per day in the first part of April, with Texas
Discounts for member banks . ... . . . . . . . .. . . .
o
Othe r discounts and advances . .. . ..... ... . .
production
limited to 11 days. District production waS
928,508
U. S. Governm e nt securities ... . ..... . ...... .
928,908
Total earning assets••••• •• .• •• . • ...• . . • ...
slightly
lower
than in March but was 20 percent above
978,584
Member bank resorve deposits•••. . .. ...• •. .
710,707
Federal Reserve notes in actual circulation ...•.
a year ago. Based on a 12-day schedule, Texas crude
oil production in May will increase to a daily average
Earning assets of the Federal Reserve Bank of rate of 3,152,765 barrels. Louisiana crude oil proDallas rose $24.1 million during the 4 weeks ended duction in May will about equal the April average,
April 15. This gain was more than accounted for by but allowable production in southeastern New MexiCO
an expansion in the Bank's holdings of Government will be 3 percent higher. These increases will bring .3
securities. On April 1, the Dallas Bank's participation contraseasonal gain in crude oil production. Thus, Jt
in the System Open Market Account was increased appears that mandatory import controls are beginning
from 3.9171 percent to 3.9914 percent, and this in- to be reflected in the rate of domestic crude oil prodUCcrease was mainly responsible for the larger holdings of tion. Total imports in the 5 weeks ended April 10 deGovernment obligations. The Bank's Federal Reserve clined 14 percent. Imports of refined products declined
notes in actual circulation declined modestly between sharply after the imposition of import controls.
Total gold certiflcate reserv es.•••. ...... .. . • $ 734,016
16,625
915
1,021,330
1,038,870
966,060
764,116
I
BUSINESS REVIEW
$ 779,837
18,116
952
995,698
1,014,766
1,013,773
76 5,773
$786,168
400
NATURAL GAS : MARKETED PRODUCTION
(In milJi ons of cubic feet)
Fourth quarter
Third quart or
Fourth quartor
Are a
1958
1958
1957
~O:~i~:X·i do·. ": : : : :: : : : : : : : : :
e Xe s . . . .. .•. .. • •.• . .. . • . ..
591 ,2 00
193,4 00
186.000
1,410,400
475,500
154,000
158,100
1,292,300
52 1,300
202,300
149,600
1,340,200
Total . .... .. ... ...... . . . ..
2,381,000
2,079,900
2,213,400
? klahoma . .. ...•......... . .
SOURCE, United States Bureau of Mines .
The vitality of the District's natural gas industry was
confirmed recently with the announcement of the construction of a 300-mile pipeline from the Gulf of Mexico to the Fort Worth area. Completion of this project
would provide a profi table market for a major gulf
Coast producing field.
The nonfarm sector of the southwestern economy showed renewed strength in March. Nonagricultural employment increased by 33,100 workers to
reach 4,241 ,3 00, which is 1.9 percent higher than the
recession low in March 1958. Improvement was general, but the month-to-month increase was led by
recovery in manufacturing and seasonal gain~ in construction and trade. Total unemployment III Texas
declined 14 400 from February to 177,100 in March,
and claims ' for unemployment compensation in the
State reflected a further reduction of 5 percent from
l1lid-March to mid-April.
. Output of Texas industry turned upward by 2 points
March to reach an adjusted index level of 169. The
sharp recovery in petroleum refining following settlel1lent of the February strike accounted for much of the
total gain, but activity increased in a number of ~anu
facturin g industries. A degree of weakness was eVident
In
in both crude oil production and aircraft manufacturing, However, the prospects for greater stability in the
latter industry were further improved by the designation of a Fort Worth manufacturer to build the prototype of a nuclear-powered bomber.
Construction trends continued strong in the southwestern states, and construction contract awards in the
region during February were 27 percent higher than a
year ago. Residential awards were up 40 percent, and
"all other" awards rose to a level 16 percent above a
year earlier.
Nonresidential construction contracts in Texas during March totaled a record $161. 6 million, according
to the Texas Contractor. This is nearly two-thirds
higher than the levels of both the preceding month and
March 1958; the total for the first quarter was nearly
$330 million, which is another record and is 55 percent
higher than a year earlier. Contributing to the March
record was a $70 million project that includes the construction of a natural gas processing plant near Kingsville and a 238-mile connecting pipeline to an existing
plant near Houston. Plans to spend $20 million to double the capacity of a Houston polyethylene plant were
announced during March also.
Personal income in the five District states reached a
total of $16,684 million in 1958, according to a new
series published by Business Week. This level reflected
a gain of 2.6 percent over 1957, compared with an increase of 1.9 percent for the Nation. The income series
shows further gains through January of this year. The
seasonally adjusted income level for the region during
January was up from December and was 5.5 percent
higher than in January 1958, compared with a year-toyear increase of 4.1 percent for the Nation.
NONAGRICULTURAL EMPLOYMENT
Five Southwestern Stotes1
INDUSTRIAL PRODUCTION
(Seasonall y adjusted indexes, 1947· 49
==-
~ a and typ e of index
TEXAS
io tal industrial production . ...
ootal manufactures . . .• . ...•
Nurcbl o manufa ctu res .. . ... .
M?ndurabl e man ufactu res • . . .
In oral s• . .•..•. .. . • . . ....
U
NITED STATES
~o ta l
industrial production .. . .
ootal manufacture s .. .•. .. . .
Nurabl e manufacturos •.. . . . .
M~ndurabl e manufactures . .. .
In eral s. ' " ..... . .... .. ..
P
r -
Percent chang e
=
1959
1959
March
1958
169
205
240
189
135
167
198
236
180
137
171r
20 1
234
186
142r
152r
191r
222r
177r
114r
147
150
160
140
123
145
148
156
139
123
143
145
153
137
124r
128
129
135
124
112
March
1959p
February
January
SOU RCES, B~ard of Go vernors of the Fede ral Rese rve Sy. te m.
Federal Reserv. 80n k of Dallas.
March
195ge
F. bruo ry
1959
March
1958r
4,241,300
766,000
3,475,300
250,400
313,000
4,208,200
756,000
3,45 2,600
248,200
304,300
392,600
Trade .... ... . . , ...... 1,026,800
187,400
Finance •• •. . . . .... .. ..
494,900
Service • • • •• . . . .. • . . ..
Government •.... .. • . . .
810,200
391,700
1,019,000
186,400
494,300
808,300
Type of employment
Total nonagricultural
wage and sa lary work ers ••
Manufacturing . ... . ..•. ••
Nonmanufacturing . .. . . ...
Mining • ••••.• ... • ... .
Construction . .. . ••.•• ..
Transportation and public
utilities • . • . . .. . ..• ..
1
Pre limina ry .
Rev i se d
Mar. 1959 from
Numb er of pe rsons
100)
Feb.
1959
1958
4,160,900
763,000
3,397,900
257,600
281,200
0.8
1.3
.7
.9
2.9
1.9
.4
2.3
- 2.8
11.3
398,500
1,006,800
182,400
487,200
784,200
.2
.8
.5
.1
.2
- 1.5
2.0
2.7
1.6
3.3
Mar.
Ari zona, Loui siana, New M ex ico , Oklahoma, and Te xas.
Estimatod.
er-
Revi sed.
SOURCES, State employmont agencl.s.
Federa l Rese rve Bonk of Dalla •.
BUSINESS REVIEW
I
CONDITION STATISTICS OF ALL MEMBER BANKS
BANK DEBITS, END-OF-MONTH DEPOSITS
AND ANNUAL RATE OF TURNOVER OF DEPOSITS
Eleventh Fed e ral Res e rv e District
IDollar amounts In thousands)
(In millions of dollars)
D. blts to d. mand
De mand d e posits t
d e posit accounts l
Percentag e
change f rom
1959
Area
Annual rot e of turnover
Feb. Mar.
1959 1958
March
ARI ZONA
Tucson •• • •. .. •• •. ••• $ 232,899
LOUISIANA
M onro e •••• •• • •• •• • •
76,42 2
315,175
Shreve port • .•• •• . ••.
NEW MEXICO
Rosw. II ............ .
35,780
TEXAS
98,004
Abil.n . .... .. ...... .
Ama ri llo •• • • •• ••••••
221,993
Austin ............. .
207,231
157,721
Beaumont ••• • •••• •••
188,212
Corpus Christi • ••• . •.•
16,401
Corsicana • • ••• •• ••.•
\ Dalla s •• • •. •• •••••• • 2,492,536
377,446
EI Pa so ..... . . •. ... •
781,284
Fort Worth .. . . ... .. .
87,234
Galveston •• ••.• . •••.
2,269,783
Houston • •• • ••• • ••••
25,829
La r. do .. . ......... .
181 ,021
Lubbock ..... ... .. . .
57,869
Port Arthur .. .. ..... .
54,677
San Ang . lo .. ...... .
590,289
San Antonio •••••••• •
21,523
Texo rkana 2 •••••••••
87,446
Tyl. r ...... . ....... .
105,159
Waco •••• • • ••• •• •• •
116,438
Wichita Falls ••......
Mar. F. b. Mar.
1959 1959 1958
11
30
$ 123,296
2 2.6
20.3
20.2
13
12
22
9
49,248
195,935
18.4
19.9
15.7
18.6
14.4
18.4
11
9
30,992
13.8
12.2
14.2
5
13
10
10
9
9
8
15
9
8
- 2
5
13
23
9
4
3
13
14
29
17
5
0
3
21
-12
23
18
15
13
13
24
63,508
115,859
154,094
104,270
112,384
20,688
1,141,308
164,409
387,171
64,080
1,252,500
22,412
125,789
44,241
47,049
394,040
16,948
63,148
69,842
104,997
18.5
23.2
16.2
17.8
19.9
9.4
26.2
26.9
24.7
16.6
21.5
14.2
17.5
15.6
14.2
18.1
15.1
17.0
18.0
13.2
17.4
19.8
15.1
16.0
18.1
8.6
24.1
22.2
22.9
15.1
22 .1
13.7
16.7
14.3
12.6
16.2
14.0
15.8
15.8
11.5
17.3
20.2
17.9
16.8
20.0
8.2
26.4
22.8
22.3
14.6
22.9
14.2
17.2
17.4
13.0
17.5
13.6
15.4
17.3
11.0
"
7
15
13
7
8
12
12
6
Total-24 citl.s •.•• .• .• $8,798,372
March 31 ,
1959
11
$ 4,868,208
21.6
20.4
ASSETS
amountod to $ 45,18 1,000 for th o month of Ma rch 1959 .
lin thousands of dolla rs )
$ 4, 237
2,426
696
941
136
1,067
2
427
254
TOTAL ASSETse ... .. . .. .. .... . .. . . ..
10,846
10,969
10,186
LIABILITIES AND CAPITAL
D. mand de posits of banks . . .. •.•.. . .....
Other demand de posits .... .... . .. . ..... .
Tim. deposits • • ... ........ .•.. . . . . . . . ..
1,067
6,640
2,1 23
1,046
6,777
2,128
1,081
6,326
1,844
Oth.r liabilities· .. ... . . . . .. ...... .... . .
Total capital accounts e ••••••.•••. ..• • •.•
9,830
33
93
890
9,951
27
113
878
9,251
5
108
822
TOTAL LIABILITIES AND CAPITALe • . .•.•
10,846
10,969
10,186
Total d. poslts ••• .. . . .... .. .•... . . ...
Borrowings e ••• ••• •... •• •.. • •. .••. . •• ..
e -- Estimated.
GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
Eleventh Federal Reserve District
IAve rag es of daily flgures. In millions of dollars)'
GROSS DEMAND DEPOSITS
Res e rve
city banks
Country
banks
Tota l
Re serve
cit y banks
Country
Total
1957: March . •. .
1958: March . . ••
$7,345
7,378
7,828
7,999
8,106
7,858
7,794
$3,578
3,589
3,832
3,931
3,952
3,808
3,827
$3,767
3,789
3,996
4,068
4,154
4,050
3,967
$1,492
1,810
2,090
2,088
2,090
2,117
2,129
$ 787
959
1,131
1,125
1,106
1,119
1,119
$ 705
851
959
963
984
998
1,010
Fe brua ry ••
Fe brua ry
1959
1958
1959
March • • .•
$ 474,420
209,276
265,144
4,013,416
1,501,212
2,512,204
BUI LDING PERMITS
=============================
=
VALUATION IDolia r amounts in thousands)
-------------------------------------Pe rce ntage change
--------------------March 1959
Ariz ona, Louisiana, Ne w Me xico, Oklahoma, and To)C.as .
NUM8ER
SOURCE : F. W. Dodge Corporation .
from
3 months
1959
Feb. Mar.
1959 1958
3 mas.
1959
368
1,069
1,381
3,802
5
43
_16
544
1,288
2,012
7,222
-37
- 29
_4
261
305
328
458
124
2,801
705
877
121
1,752
322
264
1,772
236
180
752
875
986
986
278
6,354
1,766
2,130
288
4,524
1,000
480
4,22 1
634
448
2,554
2,092
4,811
1,248
1,504
21 ,086
6,317
4,012
268
19,600
3,681
717
5,693
1,048
1,9 28
7,520
9,816
14,182
3,927
4,887
47,520
15,51 4
11,413
748
53,412
13,740
1,871
15,139
3,578
4,017
1
-6
- 6
-10
-1
47
32
-7
10
32
- 44
5
22
5
121
121
- 27
50
-18
- 16
105
15
- 9
9
41
- 83
21
- 27
181
116
59
54
14
_ 23
59
15
_ 9
19
2
65
_65
23
16
183
Total- 17 cities . 11,418
28,079
$79,952
$2 18,308
15
16
21
---------------------------------------
AR IZONA
lin thousands of barre l. )
Tucson ••• • • •••
LOUISIANA
Change from
March
1959'
Fe bruary
Are a
1959'
March
1958'
Fe bruary
1959
March
1958
ELEVENTH DiSTRiCT ••••... .
3,214.0
3,250.7
2,881.9
550.7
1,291.3
161.9
108.0
770.1
253.2
115.5
3,943.1
7,193 .8
2,689.7
2,337.2
452.0
1,011.3
128.2
103.3
642.4
237.7
114.8
3,583.6
6,273 .3
- 36.7
- 39.6
- 17.0
-19.6
-3.2
.0
.3
2.9
.1
18.9
-17.8
524.3
505.1
81.7
260.4
30.5
4.7
128.0
18.4
.8
378.4
902 .7
Gulf Coa.t •.. • ....... •
W est Te xas • . . ••. . •• • •
Ea st Texas (p roper)•• • • •
Panhandle • • •.• • •• • •.•
R.st of State ... ... ....
Southea ste rn Ne w Mexico . •
Northe rn louisIana •••• •• ••
OUTSIDE ELEVENTH DISTRICT.
UNITED STATES . .. . .. . . .. ..
SOU RCES :
1
533.7
1,271.7
158.7
108.0
770.4
256.1
115.6
3,962.0
7,176.0
Estimated from American Petroleum In. tltute weekly reports .
: Unite d Stat es Bure au of Min e s.
BUSINESS REVIEW
28
3 mos. 1959
camp. with
3 mos. 1958
March
1959
March
1959
Are a
CRUDE OIL: DAILY AVERAGE PRODUCTION
Texa s •• . •• ••• .. •• .. •• . • 2,842.3
banks
1958
FIVE SOUTHWESTERN
STATES' . .. .... ... $ 307,262 $ 299,277 $ 242,635 $ 604,994
309,684
107,957
159,961
Reside ntial. •••••••
151,082
134,678
295,310
139,316
156,180
All other .. ........
UNITED STATES . •.... 2,307,037 2,319,167 1,953,422 4,621 ,389
727,282 2,091,220
Resid e ntial . ••• • • . • 1,073,077 1,021,516
All other .......... 1,233,960 1,297,651 1,226,140 2,530,169
1
=
TIME DEPOSITS
Date
1959: January ..•
January - February
January
March 26,
1958
4,575
2,720
842
930
142
1,01 2
2
479
267
Nove mb e r.
De ce mb e r .
VALUE OF CONSTRUCTION CONTRACTS AWARDED
1959
1959
$ 4,553
2,603
831
955
140
999
3
506
256
2 1.2
Deposits of individuals, partnerships, and corporations and of stotes and politico I
subd ivisions.
" Th.se fl gures include only one ban k In Texarkana, Texas. Total debits for all banks
in Texar kana, Te xas· Ar kan sas, including one bonk locate d In the Eighth District,
Fe bruary
Fe brua ry 25,
1959
loans and di scounts .•. ••...... .. .. ... •.•
Unite d States Gove rnm e nt obligations .. •..•
Othe r securities •• .. • • ...•• . ..•• .. ••..• •
Res e rve s with Fe de ral Rese rve Bank • •. • ....
Ca sh in vault e .• . .• •. .. •. .. .•••. .. •..••
Balances with banks in th e Unit e d States ••..
Balance s with ban ks in foreign countries e ....
Cash ite ms in p rocess of collection . . ••. . • . •
Other a sse ts e • • • . . .•• .. • • .. .. • • . .• ....•
1
Ar. a and type
March 25,
Ite m
Shreve port ••• •
TEXAS
Abil.n . .......
Amarillo • •. •••
Austin • •. •. •• •
Be aumont • • •..
Corpus Christi . •
Dallas .... ... .
EI Pa so •.. ....
Fort Worth .. ..
Galveston • • •• •
Houston • •••• •
Lubbock . . . . . .
Port Arthur •• ••
San Antonio •..
Waco ••... ' "
Wichita Falls • •
-4
.-
@FedFRASER