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MONGJLH]GG)(

REVIEW
FED ERA L

RESERVE

Vol. 36, No. 11

BANK

o

F

DALLAS

DALLAS, TEXAS

November 1,1951

IMPLICATIONS OF POPULATION CHANGES IN THE SOUTHWEST
W. JOHNSON, Industrial Economist
Federal Reserve Bank of Dallas

KEITH

The current expansion in the defense program renews
interest in the population trends of the Southwest. During
World War II the rapid growth of war production stimu·
lated migration from rural areas to cities, particularly in·
dustrial centers, with all of the larger metropolitan areas
gaining significantly in population. After the war the popu·
lation of the Southwest and its cities increased further as
the result of the return of veterans to both urban and rural
areas, the continued rapid development of southwestern in·
dustry, and the relatively high birth rate. The latter factor
has been particularly important during this period of high
incomes and essentially full employment.

ing population centers. Most of the large backlog of con·
struction demand accumulated during the war years, both
residential and nonresidential, was in the urban areas, par·
ticularly in the larger cities and their rapidly growing
suburbs. Many of these suburbs have felt a strong need for
new streets, sewer and water systems, shopping centers, edu·
cational buildings, hospitals, recreational centers, and other
facilities to serve the greatly expanded residential area.
The relatively high incomes and essentially full employ·
men t during these years contributed appreciably to the
purchasing power required to support the construction of
these facilities.

The industrial progress in the area dnring the postwar
period is indicated by the rise of industrial constrnction to
peacetime peaks in 1947 and in 1951; the continued growth
in manufacturers' sales and in the value added by mannfac·
ture; the large increase in output of crude oil and its prod·
ucts, as well as natural gas, carbon black, sulphur, potash
and other products; the persistent rise in industrial con·
sumption of electric power; and the steady additions to
nonfarm employment, especially in manufacturing.

In view of the high level of business actIVIty generally,
combined with the rapidly expanding defense production,
population trends which we're predominant during the past
decade are likely to be accentuated in the next year or so.
The growth of the cities of the area probably will be accel·
erated, and the strong attraction of employment in industrial
areas will draw additional workers from ti,e generally scarce
labor supply now on farms and ranches, though at a much
slower pace than during the early years of the 1940's. Due
to the location of defense plant facilities, some relatively
new or undeveloped areas may have unusual grOWtll.

•

The population gain of the Southwest reflects primarily
economic expansion in the larger industrial centers, al·
though numerous smaller towns and cities have grown as
a result of the decentralization of industry. During the 5
years following the war there was no real net return move·
ment of population from the larger citics to the rural areas
at any time. Conseqnently, for the decade as a whole, there
was a rather general tendency for rural farm areas to lose
population ; but these losses were more than compensated
for by the marked growth in urban centers, particularly the
larger industrial cities.
The net result of these changes during the decade was
measured in the spring of 1950 by the 10·year census. The
~hifts and increases in population disclosed for the 1940-50
period are considerable and have had profound effects on
the economic life of the area. Thus, there has been a strong
new demand for housing and other constrnction and for
various comm unity facilities and services in all of the grow.

•

The population shifts during the 1950's may prove to
be relatively easier to cope with than those during the war
period. For one thing, the large volume of construction
activity since the end of the war has provided a considerable
volume of relatively high.quality housing, even to the ex·
tent of a modest oversupply in some areas. Much progress
also has been made in providing business, institutional, and
public buildings, services of various types, and engineering
projects. As a consequence, the towns and cities of the
South west started the decade of the fifties relatively better
supplied with such buildings and facilities. Another factor
which will contribute to relatively easier adjustment is the
fact that population changes of the next few years, while
in the same general direction as a decade earlier, are likely
to be less striking and to involve less serions problems than
those of the World War II period. This is true because, first,
the current defense program is undergoing a somewhat

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

MONTHLY BUSINESS REVIEW

152

POPULATION TRENDS . 1900-50
2.00,ooo.ooo, r"'~"~"~'~'~n'F°~~'~~r--~~r--~-""'"
"r"'''-''''-'-'''''''~''1Ll ZOO,OOO,OOO

~

100,000,000

~~~~U~N,~, ~o~s;r='A~"!'~-~~~~~~~,
-=-1:

100,000,000

:at-AL.F
IVE

I -~~t-- SOUTHWESTERN

~~_ _~_

ST AT ES

10,000,000

_
~

10,000,000

TE)(AS~ _ .. _ ..
-:

. _- --::=_ ·, - . - =,'----- ·-'--'11 - - -1
..

---- OK~~
' ---"'-

==

- ' - -r--

1-=::=:;1;;:=';-4- --c::::+-----_=:
1 ,.....
_
..
LCUISIA NA

-=,-"

I,ooo,ooo' ~_~~'~~~~~~~~~~~~;~r.ooo,ooo
__
gt~~~~~"

',-

~ARllONA
IQO.OOO ...........-1
I
ISOO

191
0

192v

1930

".u

slower rate of expansion than the war production program
of 1941-43 and, second, the labor force and production
capacity are relatively fully employed at the present time.

and rural nonfarm areas, increased by 41 percent; while
the population of the urban areas, defined so as to include
all cities of 2,500 or more, increased 670 percent according
to preliminary figures. Breaking this down still further, in
cities of 2,500 to 50,000 the increase amounted to 4.37 per·
cen t, while in cities of over 50,000 the gain was 1,116 per·
cent.

•

As a result of these diverse trends, the rural population
declined from 82 percent of the total population in 1900 to
46 percent in 1950. Cities of 2,500 to 50,000 population
increased their share of the total from 12 percent to 25 per·
cent, while cities of over 50,000 population increased their
share from 6 percent to 29 percent. Data available for 1920·
50 indicate that the rural nonfarm population-people liv.
ing in towns of less than 2,500 population-has accounted
for approximately 22 to 26 percent of the total population
during the past 30 years. The farm population accounted
for 47 percent of the total population in 1920 but only about
23 percent in 1950.

POPULATION CHANGES, 1940-50
Population
Percent

1950

1940

Change

change

ELEVENTH FEDERAL RESERVE DISTRICT
loui!iona, 26 poriskes .. . .. ....
New Me~ieo. '8 counties .. . ... .
Oklahoma, 8 counties ..... .....
Tex.as, 254 counties . ... .......

207,838
759,083
301,702
134,103
7,711,194

137,758
752,285
241,744
187.137
6,414,824

70,080
6,798
59,958
-53,03.
1,296,370

0.9
24.8
- 28.3
20.2

Total ••••••••• . .•.•.•.. •

9.113,920

7,733,748

1,380,172

17.8

Arizona .•...................
Louisiana •••••• ••• .•••••.••• •
Hew Mex.ic;o ••...••••••••••••

749,587
2,683,516

499,261
2,363,880

250,326
319,636

50.1
13.5

681,187

531,818

Oklahoma ..... ... .. . ........

149,369

2,233,351
7,711,194

2,336,434

Texas, ...... .• ........•. .. .

6,414,824

-103,083
1,296,370

Total ..••.. . •..... .. ..• .

14,058,835

12,146,217

1,912,618

15.7

UNITED STATES ... .. ......... . . 150,697,361

131,669,275

19,028,086

14.5

Arizona,S counties •...... ... ..

The rate of growth of population in the Southwest for
a long time has exceeded that of the Nation. From 1900 to
1950 the population of the United States doubled, while in
the five southwestern states-Arizona, Louisiana, New Mexico, Oklahoma, and Texas-the population at the end of
this 50· year period was two and one-half times that at the
beginning. While Louisiana nearly doubled its population
during these five decades, the population of Arizona increased to six times the 1900 figure. Perhaps more significant than the gains in total population is the distribution
of these gains among the farms, small towns, medium·sized
cities, and metropolitan city areas. During the past 50 years
the rural population of the five states, including both farm

URBAN AND RURAL POPULATION,1900-50
ARl lO NA , LOOISIANA, NEW MEXICO , OM
LAHOM A, AND T[ KAS

seu~~(

U 5 Bu' ... .! ... "" • •••

50.9

FIVE SOUTHWESTERN STATES

41

...

28.1

- 20.2

SOURCE: United States Bureau of the Census, 1950 Census 01 Populotion, Advance
Reports, Series PC-8 and PC·9.

During the 1940-50 decade the population of the five
southwestern states increased by 15.7 percent, or slightly
more than the 14.5 percent achieved hy the Nation. Higher
yet was the 17.8·percent increase in the Eleventh District,
which con tains most of the centers where population increases have been pronounced in the five states. While it
would be inaccurate to state that all of the Southwest enjoyed faster rates of population increase than the Nation,
spectacular gains were achieved in many individual cities
and co unties, including some with relatively small populations in 1940. In many cases, oil, trade, irrigation, war
plants, or postwar industries accounted for significant
growth.
Especially remarkable population increases were achieved
in a number of suburbs of the larger cities as a result of
the concentration in those suburbs of much of the growth
of the metropolitan areas of the Southwest. The suburbs •
usually offer the advantages of larger amounts of land at
lower costs, lower taxes, and more attractive living conditions. With the ever-increasing use of trucks, buses, and
automobiles, the transportation service in the suhurhs has

MONTHLY BUSINESS REVIEW

•

PERCENTAGE POPULATION CHANGES IN COUNTIES, 1940-50
Five Southwestern Stotes I
Number of countie,

Percentage enang.
in pop"'arlon

New
AriJ:ona Louisiana Mell.ico Oklahoma

DECREASE ••••••...••••..••.•

INCREASE
0.0- 9,9 ••....•..•....•
10.0-19.9 ......... • ...•.
20.0-29.9 ...•.....•.....
30.0-39.9, ........•.....
40.0-49.9 ......... , .....
50,0 and over .....•.• • ....

4

30

2
2

14
11

1

°
3
2

..1
..
°

'14

"

A
'2
2
2
3

Texas

Toiol

66

145

259

3
1
2
2
3

25
18
19
10
11
26

A8
36
28
15
19
35

°

Total incre(lse ••..•.•..••.

10

34

17

11

109

181

TOTAL ••••••••••••••••••.•••

14

64

' 31

77

254

44O

1 Arizona, louiliClno, New Mexico, Oklahoma, and TeAos.
] Includes (I county reduced in sile in 1949 in order to form Los Alomo. County.
Sa~t!J(FC!u:~~~sl.AJomos County, which was organized in 1949 from ports of Sandoval Clnd

SOURCE: United 5'olel Bureou of the Censvs 1950 Census of Population, Advance
Reports, Series PC-8.
'

improved steadily, while in the larger central cities congestion has lended to become an increasingly serious problem_
The tendency for population increases to be concentrated
in only a part, and frequently a small part, of a state is
shown by the Census figures on population changes in the
five southwestern states_ Between 1940 and 1950, population
declines occurred in 259 counties, or 59 percent of the 440
counties in these live states_ In another 48 counties, comprising 11 percent of the total number, the population gain
during the decade was under 10 percent On the other hand_
35 counties, comprising 8 percent of the total , ga ined 50
percent or more in population_ Decreases were particularly
characteristic of counties in Oklahoma, where 66 out of 77
counties lost population_ Of the 254 counties in Texas, 145
had decreases. Nearly half of the counties in New Mexico
and of the parishes in Louisiana also lost population_ Only
in fast-growing Arizona did gains predominate, there being
increases in 10 out of the 14 counties_

•

Factors responsible for the growth of population in individual regions of the Southwest and, hence, in the area
as a whole include chiefly a variety of expanding industries_
Thus, along the Texas Gulf Coast, virtually every county
gained in population during the 1940-50 decade, with especially large gains in the more industrialized counties where
crude oil and natural gas production increased, chemical

•

153

plants and light metals plants as well as other defense plants
were built, and manufacturing and trade generally expanded_
In the lower Rio Grande Valley substantial percentage gains
in population reflect a large extension of irrigation and the
resulting pronounced increases in the production of cotton,
vegetables and-until the 1949 freeze-citrus fruits_ In the
High Plains of west Texas, additions to irrigated acreage
were accompanied by a considerable increase in the production of cotton, grain sorghums, and wheat. In this area,
oil production also contributed to the increase of economic
activity and, hence, to population growth_ However, oil
production was a much more important factor in the population increase further south in the Permian Basin area of
west Texas and southeast New Mexico_ In the Texas Panhandle, population gains reflected the large production of
natural gas and its products, including natural gasoline,
carbon black, petrochemicals, and synthetic rubber_ Elsewhere in Texas, population gains of 50 percent or more
were made in such cities as Dallas, San Antonio, Fort Worth,
A ustin, Waco, and Wichita Falls, where trade, defense
plants, other manufacturing plants, and, to a lesser extent,
military establishments made important contributions_ In
southern Arizona, the population increase reflects the expansion of the tourist trade in the Tucson area, military
activity, and the increase of copper production_
In contrast with the forces which stimulated rapid population growth in these restricted areas are the factors which
have been responsible for population declines in the major
portion of the counties and parishes of the District_ From
the accompanying map it will be noted that the counties
suffering population declines cover mostly the strictly agricultural areas where little or no activities of a military character were carried on during the decade. The loss was
brought about largely through the migration of workers
from farms to towns and cities where there was a strong
and increasing demand for labor by government agencies
(including the military) and industrial and commercial
enterprises_ Initially, this demand for labor absorbed the
surplus of farm workers created during the 1930's by the
decline in farm operations, tile shifts in types of crops
grown, and the early expansion of farm mechanization_ As
the labor demand became more pronounced, the atlractiveness of urban life, including higher wages, a wider choice
of jobs, more modern living conditions, and advantages deriving from educational, recreational, and cultural oppor-

FACTORS IN POPULATION CHANGES,~1940-50

Five Southwestern States and United Stetes
Ne"

Total

Oldahomo

Arizona
PopUlation April 1, 1940 ••••••••••
Focton In chonges l
Births ••••••••••••...••.••••.•
Deaths •••••••••......•..•.•••
hcen of births over deaths •..
Net migrotion~ •••...•....•••••
Total net change ••••...••...
Population Aprill, 1950 ••• •••.•••
Percent change, 1940-50 ••..••..•

louiliano

499,261

2,363,880

531,818

2,336,434

173,000
61,000
112,000
138,000
250,326
749,587
50.1

710,000
236,000
474,000
-155,000
319,636
2,683.516
13.5

195,000
57,000
138,000
11,000
149,369
681.187
28.1

540,000
197,000
343,000
-446,000
_103,083
2,233,351
_4.4

Mexico

5 states

United States

6,414,824

12,146,2 17

131,669,275

1,893,000
624,000
1,269,000
28,000
1,296,370
7,711,194
20.2

3,511,000
1,175,000
2.336,000
-424,000
1,912,618
14,058,835
15.7

32,294,000
14,265,000
18,029,000
999,000
19,028,086
150,697,361
14.5

Texas

I Birth, deoth, ond migration Agures ore preliminary ond rounded and, $0, or. not fully reconcilable with tolol net change.
t Includes both intemational and inteutate migration.
SOURCE: United States Bureau of the Cenlus, Current Population Reporh. Population Estimates, Series P-2 5, No. 47.

154

MONTHLY BUSINESS REVIEW

POPULATION CHANGES BY COUNTIES, 1940-50
ELEVENTH FEDERAL RESERVE DISTRICT

C:=J

DECREASE

[]]]I]]III]

0.0-9 .9 percent Increase

ti;t~:::::»l 10.0-19.9 percent Increase

IYii)tjH

20 ,0 - 29.9 percent Increase

~ 30.0 -39.9 percent in<:reose

C=:J

40.0-49.9 percent increase

_

50 .0 ond more percent incregse
SOURCE: U.S. Bur.au 01 th.

tUlUoes, became a strong force that pulled workers needed
on farms to industrial jobs in the larger centers. This, in
turn, had the effect of forcing a rapid mechanization of
agriculture, which not only overcame the previously exist·
ing scarcity of farm workers but also displaced additional
workers.
In the postwar period these general trends continued, due
to the rapid growth in peacetime commercial and industrial
activities in most of the larger centers and to the accelerated
expansion in [arm mechanization as needed farm equipment was made available. Moreover, the workers who had
migrated to the city and had experienced the advantages of
city life and the acquisition of new productive skills had
li ttle inclination to return to farms or rural areas.
The shift of population from rural areas to the larger
cities has worsened the relative position of many smalltown merchants; however, even without a loss in population
in their market areas, merchants in very small communities
would have tended to lose business more and more to the
retail trade centers in the larger cities. The increasing use
of the automobile has made such larger cities more accessible to both the farmers and the small-town dwellers. Rising
[arm incomes have further increased the incentive of the

t.ft'Uf.

farm population to make a hi gher proportion of their pur·
chases in the larger cities where a better selection of goods
usually can be obtained. This shifting of trade to the larger
cities may have been somewhat disguised or hidden from
the merchants of the small towns as the result of the generally large increases in the total trade of the Southwest,
whereby such merchants have been able to expand some·
what their volume of business even though they may not
have shared fully in the increase enjoyed by the area's reo
tailers as a group. Any letdown in the total trade of the
area might be particularly serious in the smaller towns,
especially if the decline should stem from a drop in farm
income.
Another factor affecting the population of the Southwest
has been the migration of persons to and from the area.
Durin g the 1940·50 decade, 424,000 more persons left than
entered the five southwestern states, although the 3,511,000
persons born during the period exceeded the 1,175,000
deaths by a sufficient margin to cause a net gain of 1,913,·
000 persons in total population. Arizona enjoyed a par- •
ticularly large inward migration, amounting to about 138,·
000 persons or appreciably more than the natural increase
due to the excess of births over deaths during the decade.
New Mexico and Texas also enjoyed some net inward move-

MONTHLY BUSINESS REVIEW
ment of population. On the other hand, Oklahoma and Louisiana had a substantial nct outward migration of population, although in Louisiana it was appreciably less than thc
gain due to the excess of births over deaths.
While this inward and outward migration from the five
southwestern states had a relatively small effect upon total
population, thc area received considerable qualitative advantage from this migration. A large proportion of the perSOilS leaving the area were relatively unskilled farm workers
or unskilled laborers from the cities, but many of the
persons migrating to the Southwest had highly developed
skills or technical training. Over the years such persons
have greatly augmented the growing body of skilled and
and technical personnel within the area. During the past
decade, many of these arrivals came as a result of the ncw
aircraft, chemical, or other industrial plants established in
the area, since the rapidly expanding demand for such personnel could not be met from within thc area. Moreover,
many persons of outstanding ability have been attracted to
the Southwest by its dynamic growth.
An area with a rapidly growing population ordinarily derives many benefits [rom such increase, and this has been
true in the Southwest. In the first place, a larger volume of
trade and other business activity is to be expected as a
result of the larger numbers of customers within the market
area and the tendency toward higher average incomes in a
growing region. In addition to a larger total volume of business, there is usually an increase in volume per business
enterprise, because population and income tend to rise
faster thall the number of business units.

•

I

Another advantage is found in the morc varied and specialized lines of trades and services which are economically
feasible in a larger community. Such greater variety of
goods and services and more extensive specialization result
in better service to the community and gcncrally higher
incomes to those providing the service.

155

One of the more dynamic results of population growth
is the generation of a tendency toward still further growth.
Thus, once a city becomes a tl'8de center for a larger region,
its further progress is almost automatic to the extent that
economic development continues in its supporting area. In
addition, growth of the central city tends to increase both
the size and the income of its trade area. Generally, under
conditions prevailing in the Southwest, the larger the popu ·
lation of a central city and its surrounding area, the more
likelihood there is of further growth. For one thing, there
is more capital available for investment in the expansion of
air! or the creation of new industries, as well as the im·
provement of harbors, highways, streets, freight depots,
warehouses, community facilities, and other structures. In
a larger city, not only will local government expenditllres
on improvements be greater, but-even more importantprivate capital will be more available and willing to undertake improvements within the private sphere.

A still further stimulating advantage of a larger popnla.
tion is that there tend to be present more of those advantages
which attract new industries from outside the area, as
well as stimulate the further growth of industries already
present. A larger city ordinarily will have a greater sup.
I'll' of labor available, and this labor will tend to have
more varied skills and experience than would be the case
in smaller communities. At the same time, the larger city is
also more likely to have those service industries which bOlh
new and old business enterprises find helpful or necessary,
e.g., machine shops, supply houses, makers of parts and
components, advertising agencies, accounting services, con·
suiting services, financial institutions, and other economic
service agencies. Furthermore, a growing population means
expanding markets, which attract new industries and new
business establishments.

POPULATION CHANGES tN CITIES OF 25,000 OR MORE AND
tN METRO POLITAN AREAS, 1940-50
Eleventn Federal Reserve District

A rise in construction activity is one of the most typical
and prominent results of population growth. Often, due to
the accumulated scarcity of houses and other buildings, the
volume of construction increases much more, percentagewise, than population. In the faster growing communities,
construction often reaches and maintains a high level of
activity for a considerable period. The acceleration of construction activity stems from the need for houses and also
for business and industrial buildings and for added facilities for education, transportation, communication, and sani·
tation. Closely associated with construction is the increase
in the value of real estate, including both land and buildings_ This results not only from the greater demand in relalion to supply of land in and contiguous to the citics but
also from a more intensive use of farm land in the surrounding territory and easy access to a good market for
available produce. The rising property values, in turn, in·
crease the tax base from which the local governments may
obtain more funds to finance the improvements required in
a growing community.

Metropoliton area
populotion

Population of city
Percent
increase

Rank

Cily

1

Houston, Texas ...... . .
Dalias, Texas ........ .
San Antonio, Texas. . . .
Fort Worth, Texas . . .. .
Austin, Texas ..... . .. .
EIPaso, TeJlas . . ...... .
Shreveport, louisiana .. .
Corpus Christi, TeJlcs .. .
Beaumont, TeJlos ... . . .
Waco, Texas ........ .
Amarillo, Texas ...... .
lubbock, TeAas . . .... .
Wichita Falls, TeJl05 . . . .
Galveston, Texas ..... .
Port Arthur, Texas . ... .
Son Angelo, Texes . ... .
Leredo, Texas. ...... .
Abilene, Texas ....... .
Tucson, Arizona . . . ... .
Tyler, TeAos ......... .
Mc,.nroe, louisiana . ... .
Brownsville, Texas . ... .
Odessa, TeAos ... . ... .
Roswell, New Mexico .. .
Temple, Texas . . ..... .

2
3
4
5

6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24

25

Percent
increase
1940-50

1950

1940

1940-50

1950

596,163

384,514
294,734
253,854
177,662

55.0
47.4
60.9
56.9
50.6
34.8
29.6
89.0
59.2
51.3
43.6

806,701
614,799
500,460
361,253
160,980
194,968
176,547
165,471
195,083
130,194

52.5
54.3
48.0
60.2
45.0
48.8
17.5
78.6
34.2

113,066
(' )

39.3
(I)

434,462
408,442
278,778
132,459
130,485
127,206
108,287
94,014

84,706
74,246

71,747
68.042
66.568
57,530
52,093
51,910
45,570
45,454
38,968
38,572
36.066
29,495
25,738
25,467

87,930
96,810
98,167
57,301
59,061

55.982
51,686
31,853
45,112

60,862
46,140
25,802
39,274
26,612
35.752
28.279
28,309
22,083
9,573
13,482

15,344

125.2
50.8
9,4
24.7
101.9
32.2
71.2
27.1
37.8
36.2
63.3
208.1
90.9
66.0

27.8

I Included in Beaumont metropolitan area.
SOURCE: United States Bureau of the Census, 1950 Census of Population, Advance
Reports, Series PC-B end PC-IO.

156

MONTHLY BUSINESS REVIEW

These numerous advantages of a large or growing population carry with them certain obligations, and any city or
area that has enjoyed rapid growth may well ask how far
it has met these obligations_ Most such obligations stem
from the need to provide more facilities and a more complex
and efficient community organization to serve the larger
population_ Many southwestern cities have had severe housing shortages during the past decade of rapid growth_ While
the postwar building boom has reduced the housing shortage appreciably, the continued population growth makes
this problem a more or less continuous one, at least so long
as employment and incomes remain at high levels_
Similarly, the business community of a rapidly growing
city must provide industrial and commercial facilities, utilities, transportation services, and other necessities of modern
u_
rban life_ As in the case of housing, the profit motive
tcnds to stimulate private enterprise to meet these needs,
but in many cities and their suburbs the growth of population has been so rapid that the fulfilling of these obligations
has tended to lag_
In the sphere of local government obligations is the nced
to provide schools, streets, sewer and water systems, traffic
control, police and fire protection, and certain other community facilities and services_ These increasing obligations
mean higher community expenditures and higher taxes,
though-at the same time-the rising tax base may permit
meeting these obligations through merely moderate increases
in tax rates_ The rise in tax rates as a city grows tends to
be matched roughly by the higher productivity and income
of the population_
An obligation worth particular attention in the larger
cities is the need to adjust many aspects of community life
to the increasing congestion resulting from the crowding together of more and more people within the city_ If this
congestion problem is not handled satisfactorily, many of
the advantages of population growth may be offset_ Traffic
congestion causes business delays, hinders customers reaching places of business, increases commuting time, and may
tend to have a somewhat depressing effect upon community
morale_ In the Southwest only a few cities are, as yet, large
enough to feel the congestion problem to a degree comparable with that of some large cities in other parts of the
country_ Nevertheless, growing cities have the responsibility
to develop plans for coping with the problem before it becomes acute_
Although much emphasis is placed on population growth,
it is by no means a complete and adequate measure of eeo-

nomic development. Indeed, both production and income
can qllalif y much better as all-round indicators of economic •
progress_ The population gains of an area such as the •
Southwest really tend to understate the extent of economic
advance_ since much more important than the increase in
mere n~mbers of persons has been the rise in the average
skills, production, and income per capita_ From 1940 to
1950, while the population of the five southwestern states
increased 15_7 percent, personal income in the area rose
by 253 percent and even in terms of constant prices was
up about 105 percent. Similarly, other indicators of productive activity rose much faster than the population_
In conclusion, it may be stated that the rapid population
growth of the Southwest during the decade of the 1940's
was not a temporary development_ The current defense program is havin g an increasing economic effect upon the
Southwest, and it may be expected that there will be population changes similar to those during the early years of
World War II. Thus, migration to centers of defense production has been stimulated by the expansion of the aircraft, chemical, metals, ordnance, and shipbuilding industries_ Many of the new workers in these industries have
come from the smaller towns and farm areas to the larger
cities or their su burbs_ As these trends unfold, the large
cities may be expected to continue to gain population at the
expense of the more thinly populated areas, while certain
suburbs should show unusually high percentage increases
in population_ Moreover, the decline of the farm population •
will be accompanied by even more extensive farm mechanization.

The longer-range outlook for population in the Southwest
reflects the dynamic growth possibilities of the area_ As
manufacturing increases in relative importance and in diversification, a larger population can be supported_ At the
same time, the rise of production, real income, and the
standard of living should be even more impressive than the
population growth_ However, a greater population will contribute in many ways to the economic development of the
area, particularly by supplying a larger labor force and consumin o market within the area_ To the extent that the gains
0in population are accompanied by increases in skills, work
experience, and education, along with greater capital investment, the productivity and earnings of the growing labor
force and the capacity of the consuming markets of the area
will be increased further. In all of these respects, the outlook for population growth, along with general economic
progress in the Southwest, is very promising-there will be
more people living better.

•

REVIEW OF BUSINESS, INDUSTRIAL, AGRICULTURAL, AND FINANCIAL CONDITIONS
Consumer buying in the Eleventh Fed·
eral Reserve District in September
showed a mixed pattern. Department
store sales were up seasonally, with an
11·percent rise from August, but fell 5 percent below the high
September 1950 level, due to one less shopping day. District
furniture stores sales and new car registrations in Dallas,
Houston, and San Antonio were down markedly from August,
as well as from September a year ago.
Crude oil production in the District reached successive new
highs in September and October, but announced Texas allow·
abies for November are expected to reduce production to
around the April level. Construction contract awards were
practically unchanged from August to September, with an
increase in residential awards being offset by a decline in non·
residential awards. The value of September contract awards,
however, was"about 13 percent lower than in the correspond·
ing month last year. Nonfarm employment in Texas showed
a further increase in October, due largely to continued expan·
sion in defense industries and seasonal gains in trade.
Critically dry conditions in much of the central and
western portions of the District caused deterioration of pas·
tures and ranges, losses in livestock weight, and further de·
lays in the seeding of winter grains, but the harvest of matur·
ing crops made rapid progress. October crop production esti·
mates showed little change from a month earlier. Farm prices
in the District generally strengthened during Ocober, but
prices of cattle and poultry declined.

•

•

151

MONTHLY BUSINESS REVIEW

Recent important financial developments in the District in·
cluded a continued sharp upward trend in currency circula·
tion, a marked increase in investments of weekly reporting
member banks, a moderate increase in loans, and a rather
large increase in deposits.

favorable than that of stores in the Nation as a whole. Never·
theless, cumulative sales at district stores for the first 9
months of this year were only 1 percent larger than in the
corresponding period of last year, as compared with the na·
tional average increase of 3 percent.
Sales in the individual soft goods departments in Septem'
ber generally showed little change from a year earlier, but
the consumer durable goods departments continued to expe·
rience marked declines from the heavy sales in September
last year. Sales in the women's and misses' dress and acces·
sories departments, each, were 1 percent higher than a year
earlier, while sales in the women's and misses' coat and suit
department Were 4 percent lower. Men's clothing sales regis·
tered a 2·percent year·to·year decline. Of selected major soft
goods departments, only the basement store experienced a
marked changc from a year earlier, with sales up 14 percent.
percent.
Year·to·year declines in the sales of important homefur·
nishings departments ranged from 19 percent for domestic
floor coverings to 53 percent for major household appliances.
Of course, these declines were from the unusually high levels
of September last year. Nevertheless, sales of furniture and
bedding and of major household appliances were lower than
the September volume of any of the three previous years, and
domestic floor covering sales were lower than in any other
September since 1947. Although the television and radio de·
partment sales were down 34. percent from a year ago, they
were the highest for any month this year.
Department store stocks showed a small contraseasonal
decrease during September and at the end of the month were
only 6 percent higher than a year earlier, the smallest year·
to·year increase since April 1950. It will be noted, however,
that stocks a year ago were rising sharply and were already
at a fairly high level. Aggregate stocks continue to be high in
RETAIL TRADE STATISTICS

Department store sales in the Eleventh
Federal Reserve District showed about
the usual seasonal increase in Septem·
ber. Nevertheless, fall sales to date have
been short of merchants' expectations, since an anticipated
markedl y freer spending attitude on the part of consumers
has not materialized. Merchants bave had to continue aggres·
sive tactics to stimulate sales, although consumer response to
special promotions and price reductions bas been generally
good.
September sales at district department stores were up 11
percent from August but were 5 percent less than the rela·
tively high September 1950 level. This year·to·year decline
is largely accounted for by one less shopping day in Septem'
ber this year. Houston stores, however, posted a 7 ·percent
increase over a year earlier, in contrast with declines in all
other major cities of the District. The over·all sales perform·
ance of stores in this District in September was a little more

(Pen::entage change)

STOCKS'

NET SALES

Sept. 195 1 from

Sept. 195 1 from

9 mo. 1951
line of trade
by area

DEPARTMENT STORES
Total Eleventh District ••. .•• •.•• • •••

~~tfa~$. ~.h.ri.$~i::: :::: ::::: :: ::::::

et Palo .. ....... . .. ... . .. • ......
fort Worth .... . ..... ............
HOU1ton • •••• • ••• •• • •••.•• •••••• •

San Antonio ..•. .......... •. .. .. .
Shreveport, La .•.... .... . ..•. . ....
Other cities ........... .. . •. . ... . .
FURNITURE STOReS
Total Eleventh District ••... . .•..•. . .

Austin •..• .. .. ... . ..... . ..• .. .. .
Dallas .•....................... .

Sept.
1950

-

5
I

-11
- 9
- 7
7
-12
3

-

•

-18
-28
-30
-23

Aug.

compo with

Sept.

1951

9 mo. 1950

1950

-

-

11

I

16
15
7
15
5
20
12

I

12
2
2
3

6

-

7

-

9
9
2

-

-

I
5

3
I
2

I

29

-12
- 4
-16
13

HOUSEHOLD APPLIANCE STORES
Totol Ele¥enth Oistritt •.. ... .... ....
Dallas .......... ... ........ .... .

-5 1
-53

-30
- 32

1

-

,

,
16
7
10

-10
-15
10

51OCk, ot end of month,
thange of le51 than one· half of 1 pertent.

I Indicate.

-

I
2
I

- 8
-20
- I
-17

Houston ••••• . ..•....•••••.••.•• •
Pori Arthur •• .•••.•..• • ••• •...• ••
Son Antonio . •• •• ... •••.••....•••
Shreveport. La .• • •. •.•.•••••..• •..
Wichita Falls ••••. .•...•.. . ...... .

-14

-

Aug.
1951

13
30

I
I
5

2
2

MONTHLY BUSINESS REVIEW

158

relation to the current sales volume, but merchants have
achieved a better balance in their inventories. Buying continues conservative, with orders outstanding at the end of
September up 1 perccnt from a month earlier ,b ut down 38·
percent from a year ago. The total volume of orders outstanding on September 30 was lower than on the same date
of any prior year since 1942.
INDEXES OF DEPARTMENT STORE SALES AND STOCKS

(1935·39-100)
ADJUSTED'

UNADJUSTED
A reg

SALES-Daily average
EI . ... enfh District . .•.. .......
0011<11 •• •• ••••••.••• • •• •• •

Houston •................. .
STOCKS-End of month
Eleventh District • •••.•..••••
1

Sept. Sept.
1950 1951

July

Sept.
1951

Aug.
1951

July
1951

441
401
529

366
317
420

339
288
415

454
438
472

409
361
494

411
373
477

423
400
513

420
395
441

489

481

453

444

475

486

482

431

Aug .

Sept.

1951 1951

WHOLESALE TRADE STATISTICS
Eleventh Federal Reserve District
(Percentage c.honge)

STOCKSlp

NET SAlESp

Sept. 1951 from
9mo.1951

Sept.
1950

August

Line of trade
Automotive supplies ••••••.••

-10

Drugl and sundries .... .. . ...
Dry goods ...... ... .. . . ... .
Groce ry (full-line wholesalers

not Iponsoring groups) ....
Hardware ......... . ... . . . .
lndUlitrial suppli es ••••• ••••••

M.tals ..... . ..... . .... . ...
Tobateo products ...........
Wine. and liquon .... ......
Wiring supplies, construction
mat.rials distributors .. ....

,

- 15

-.
4

10
-17
-4
11
54

Sept.

August

1950

5
-2
-

-6
-20
-10
24

11
3

-13

7
32

19

-

Chor.,. accounts

.lndolment

1949
January • ••••• • •• ••... •• •
February .• ... ... • • . •. •• •
March .• . •.... .. . •. •. .. •
April . .••... . ....• ••.•.•
May ••• .•...•...•...•.•
June •. .•..•.....•......
July •.. .. •.• ... ... •. . .. .
Augu!t •... .•.... .•.. ... .
Se ptemb er .......•...•. .
October . .• ....... .. . .. •
November .•••....•••... .
December .....• .. ..... . •

18
20
21
20
20
18
18
18
16
16
15
16

1950

1951

1949

1950

1951

14
14
15
14
13
12
12
12
12
12
13
14

U
U

50
49
54
51
51
50
49
51
50
52
52
53

50
49
54
50
53
50
49
51
50
51
50
49

49
49
51
47
50
47
47
48
45

15
15
16
15
16
17
17

I Collections durinll month as a percentage of accounn ovtslanding at beginning of month.

1
40
32
39
12

-3
- 6

64

2

The instalment collection ratio, meanwhile, showed a noticeably upward trend during the past year following the reimposition of Regulation Wand may explain, in part, the
slower collections on charge accounts. Although the instalment collection ratio in September was unchanged from
August at 17 percent, it was 5 points higher than in September a year ago. This improvement in the instahnent collection
ralio is a direct result of the provisions of Regulation W,
which require higher down payments and shorter payout
periods than prevailed generally prior to the institution of
these controls. The recent modification of Regulation W may
ultimately arrest the upward trend of the instalment collection ratio_

1951

7
15
-17

compo with
9 mo. 1950

-14
- 13
-20

1951

Eleventh District Department Stores

1950

Adjuste d for seasonal va riation.

Sept. 1951 from

RATIO OF COLLECTIONS TO ACCOUNTS RECEIVABLE'

,

-12

,

10

I

2

-

5

1 Stocks at end of month.
p Prel1mlnary.
Indlcat •• change of leu than one-half of 1 percenl.
SOURCE, United Slates Bureau of Census.

I

Furniture store sales in this District, after a marked rise •
in August, declined noticeably in September, with sales down
8 percent from August and 18 percent from the high yearearlier level. The lower sales volume is reflected in both cash
and credit sales. Collections also slowed during September.
While accounts receivable showed little change, the decline
in receivables from September a year ago continued to widen,
reaching 16 percent at the end of the month. Furniture store
sLocks remained practically unchanged following four successive monthly declines. Month-end stocks were 16 percent
higher than a year ago.

The easing in instahnent credit controls, effective the first
of August, appears to be having little noticeable effect on
sales_ Instahnent sales at district department stores in September were down 7 percent from August and remained
sharply below the year-earlier level. The failure of the more
liberal credit terms to stimulate sales appreciably is evident
not only in department stores but also in most other lines of
retail trade subject to Regulation W.

New car registrations in the three larger metropolitan centers of the District declined markedly from August to Sep·
tember, with registrations down 22 percent in Dallas, 19
percent in Houston, and 13 percent in San Antonio. September registrations in Dallas and Houston were lower than in
any other month since January 1950. Moreover, registrations in these Lhree metropolitan centers ranged from 36 to
46 percent lower than the high volume of a year ago.

The collection ratio of charge accounts outstanding
dropped from 48 percent in August to 46 percent in September, which is the lowest level for this ratio since May 1942.
The imposition of credit controls on charge accounts during
the war period had effected a substantial increase in tllc charge
account collection ratio, and while this ratio had declined
somewhat in the postwar period followin g the elimination
of charge accounts from credit controls, it had remained
noticeably higher than in the prewar period. During the past
12 months, however, the ratio showed a declining tendency,
although the slowing in charge account collections has not
developed to a sufficient extent to warrant serious concern.

Open weather over the District during
October favored harvesting of cotton,
grain so rghums, and other maturing field
crops; progress was also made in planting of winter cover crops, clovers, and small grains in areas
where moisture was adequate. However, much of central,
north, and west Texas is in serious need of rain as the limited
moisture recei ved in SepLember has been dissipated largely
by warm winds. Acute drought continues in many far western
and northwestern counties of the State where light or no rainfa ll has been received in several months. Wheat seeding in the

•

•

MONTHLY BUSINESS REVIEW

northwestern counties of Texas and in adjacent counlies of
New Mexico and Oklahoma has made only very limited progress during the past several weeks, and the crop that is up to
a good sla nd in those areas is makiJlg slow growth as dry
wea ther continues; in some fields the crop is dying_
conON PRODUCTION
TexCls Crop Reporting Districts
(In thou;onds of boles -

500 lb. gross ""t.)
1951
indicated

Crop reporting di~tricl

1949

1950

259

9 Coaslal Prairie, . ... ... .. .
10 South Te-XCII Plains. .. .....

349
190
88
505
212
627

89
722
548
16
557
120
143
48
230
122
351

State . ........ , ...... .

6,040

2,946

I -N Northern High Plains .. ....
Southern High Plains ... .. ,.
Red Bed Plains ...... .....

1-S
2
3
4
5
6
7

Trons-Pec;os ... . . . .... , ...
Edwards Plateau . . . . . , .. .

8

Southern T exos Prairies. •.•

1,571
1, 119

West.rn Crou Timbers .....

61

Block and Grand Prairies ...
Eest Tex.(lS Timbered Plains.

1,059

as percent of

Oct. 1

1950

330
710
40
715
215
240
35
290
260
715

371
173
130
250
128
179
168
73
126
213
204

4,800

Harvest of sorghum grains was widespread in the High
Plains in October and was virtually completed in other areas_
The October estimate of production in Texas is unchanged
from a month earlier at nearly 90,000,000 bushels, which is
40 percent below the record crop of last year but 28 percent
above average_ The prospective yield per acre is 19 bushels4 bushels below last year, yet better than average_ The five
states of the District expect to harvest a combined total of
109,000,000 bushels of sorghum grain, which compares with
181,000,000 bushels harvested in 1950_ The 89,000,000
bushels of corn produced in lhcse states in 1951 is 30,000,000
bushels under last year's crop, due to smaller acreage and
lower yields_

163

',250

1951

159

CROP PRODUCTION
Texas and Five Southwestern States t
(In thousands of bushels)
Texas

SOURCE: United Slates Department of Agricvltvre,

Cotton harvest is proceeding under generally favorable conditions_ Farmers in the Low Rolling Plains and Southern High
Plains counties of Texas and in other late areas are making
every effort to gather their crops as rapidly as possible, despite
a short supply of pullers and pickers_ The cotton crop in the
five states lying wholly or partly within the Eleventh Reserve
District is estimated at 7,300,000 bales, compared wtih 4,275,000 bales in 1950_The Texas crop estim ate remains at 4,800,• 000 bales_ The October estimate for the United States cotton
crop is 16,931,000 bales, or 360,000 bales less than was indicated in September. As a percent of the indicated crop, gin nings are running ahead of a year ago, although farmers are
holding a large quantity of cotton from the market in anticipation of higher prices before the governmen t loan program
expires April 30, 1952_

Five southwestern states
Estimated
Od,l,

E
stimated
1950

Oct, 1,
1951

Average
1940·49

2.946
65.730
11.544
148,818
1,281
323,.400
2,752
5,130

4,800
44,612
12,128
89,794
1,082
151,.450
2,323
1,755

4,460
112,462
18,264
84,067
.4,624
413,6.4 1
9,996
1.4,730

Average

1940-49

Crop

3,049

Colton'." ......
Corn . ....... .
Rice ! . . ....... .
Sorghum grai n . ..
Hoy 4.. . ... .. .. .
Peanuh 5 • • . . .. ..
Irish potatoes . . ..
Sweet potatoes ..

62.517
8.264
69,694
1,437
303,934
4,648
5,378

1950

1951
7,300

4,275
119,183
22,035
180,886
.4,770
.456,245
6,952

89,267
23,9 86
108,75 8
4,342
277,610
5,8.42

15,870

7,655

1 Aril:ono, l ouisiana, New Mexico, Oklahoma, and Texas.
, In thousands of bales.
~ In thousands of bags, 100 pounds each.
4 In thousands of tons.
5 In thousa nd s of pounds.
SOURC E United States Deportment of Agriculture .
:

A record Texas rice crop of 12,128,000 bags is reported,
although late rains delayed harvesting and caused some damage to the crop _Peanut production in the District fell sharply
below early season prospects; it is estimated that farmers
in the five slales produced 278,000,000 pounds, compared
with 4,56,000,000 pounds in 1950_ Yields per acre were poor
in practically all areas.
PRODUCTION OF FRUITS AND NUTS

NOATHEAN

Texas and Five Southwestern States I

HIGH PLAINS

(In thOU50nds of units)
Five southWestern ,tates

Texos

Estimated

Estimoted
Crop
Peaches .... ...
Pears .... . .. . .
Grapefruit . ...
Oroflglu . .....
Pecans ... . . ...

Unit

b,.
b,.
boxes
boxes

lb.

A... eroge
1940·49

1,777
385
17,387
3,616
30,615

1950
783
270
7,500
2.700

39,000

Oct. 1,
1951
1,189

312
250
350
12,000

Average
1940-49

2.733

765
20,68 1
4,829
62,953

1950

Oct. 1,
1951

1,389
628

2,248

10,650
4,400
55,100

3,250
1,550

593
53,780

1 Arizona louisiana, New Mexico, Oklahoma, and Texa5.
SOURCE: United Stotes Department of Agriculture.

CROP REPORTING
DISTRICTS OF TEXAS

Production of peaches in the District this year is estimated
al 2,248,000 bushels-62 percent above 1950 but 17 percent
below the 1940-49 average_ Production of other fruits and
pecans this year will fall below last year's harvests, as shown
in an accompanying table_ The sharpest decline will be in the
production of grapefruit and oranges_ Production of grapefruil in Arizona is down only 5 percent; but the Texas crop,
forecast at only 250,000 boxes, is the equivalent of merely
a small fraction of the 1950 harvest and is about 1 percent

MONTHLY BUSINESS REVIEW

160

of the record crop of 24,000,000 boxes harvested in 1945-46.
The orange crops in Arizona, Louisiana, and Texas total
1,550,000 boxes, or only about one-third of last year's harvest. The Texas crop of 350,000 boxes compares with 2,700,000 boxes utilized from last year's crop and a 1947-48
record crop of 5,200,000 boxes. The near failure of citrus
production in Texas this year is a result of the severe freeze
last winter.
Ranges and pastures in the western two-thirds of the District are in need of moisture to stimulate growth of winter
grasses. Some farmers and ranchmen in western sections
have been out of dry grass for several weeks and are feeding
hay. Supplemental feeding of concentrates has been started
in many localities to minimize shrinkage. On the other hand,
pastures continue to improve in east Texas, in northern
Louisiana, and along the Gulf Coast.

LIVESTOCK RECEIPTS
(Humber)
FORT WORTH MARKET
September September

August

SAN ANTONIO MARKET
September September

Augu st

Class

1951

1950

1951

1951

1950

1951

Cottl •• . ...• 0...

71,022

49.6U
'(0,909

79732

28.625
.40.328
7.113
'40,652

24,139
23,707
7,268
122,347

35,999
45,558
8,361
136,782

Calves... . .. ... .
Hogs.. .... .....
Sh.ep....... .. .
I

56,158
52,855
85,760

65.466

46,656

43, 1.45

36.391

73.298

Include, goatl.

Marketings of livestock have been relatively heavy as
ranchmen continue culling in an effort to adjust numbers in
line with feed supplies. Since early July, weekly receipts of
salable cattle, calves, and sheep and lambs at Fort Worth con·
sistently have run above marketings of comparable weeks of
1950. During the 4 weeks ended October 13, receipts of
cattle and calves at Fort Worth totaled 94,000 head, com·
pared with 73,000 during the comparable weeks last year.
Marketings of sheep reached 73,000 head, compared with
13,000 a year ago, while hog marketings totaled 16,000 head,
compared with 17,000 in the same weeks of 1950. Commercial meat production in Texas in the first 8 months of 1951
totaled 516,000,000 pounds, or 1 percent below thc corresponding period in 1950; however, livestock marketings in
the first 10 months of 1951 indicate that meat production
for the entire year may exceed last year's total.
Poultry production in the District in 1951 will exceed
greatly that of 1950, while the output of eggs will be lower.
Broiler chick placements on Texas farms through mid·October exceeded 43,500,000 compared with 30,400,000 to the
same date last year. Also, the production of turkeys in the
State is up some 15 percent. The estimate of egg production
in the five states in the first 9 months of 1951 is 5 percent
below the number produced in the same period last year.
Also, milk production in the District during 1951 is expected
to fall significantly under last year's output, although it probably will exceed the 1949 production.
The average level of farm commodity prices in the District
held relatively stable during August and the first part of Sep-

FARM COMMODITY PRICES

============~ ~ k~=P O~ ==='=l=~==W "==M ''=
T~OP P'~ " ~ ;d=l " ~ O = ~ h = " =O= "="============
Week ended
Commodity and market

Unit

COTTON. Middling 1S/ 16-inch. Da llcl$., . . lb.

Comparable

October 23.
1951

week
lost month

week
lost yeor

$

.36 80

WHEAT. No.1 hord. Fort Worth ......... bu.

2.71

OATS, No.2 white, Fort Worth ..... . .. . . bu.

1.17

CORN. No.2 yellow. Fort Worth . .•... ..
SORGHUMS, No.2 yellow milo, Fort Worth
HOGS, Good & Choice, Fort Worth .. ....
SLAUGHTER STEERS, Choice, fort Worth ...
SLAUGHTER CALVES, Choice, Fori Worth ..
STOCKER STEERS, Choice, Fort Worth . . . ..
SLAUGHTER LAMBS, Good & Choice, Fort
Worth .. . . ... . ... ... ......••......
HENS, heovy, Fort Worth ...... .. . .... ..
FRYERS, f ori Worth ......... ......... .
TURKEYS, No.1 hens, Fort Worth ........

2.0Sv..

bu.
(WI.

2.82

(wi.
(wi.
(wi.
(wi.

20.75
36.00
35.00
36.00

(wi.

31.00
.28
.28
.3 9

lb.

lb.
lb.

41

Comparable

$

.3580
2.62
1.08%
2.01~

$

.3915
2 ..45
.99~

1.68v..
2.19

2.60
21.25
36.00
35.00
36.00

21.75
30.00
28.50
30.00

31.50

29.50

tember, after expcriencing a substantial decline beginning
early in the year. During October, however, farm prices gencrally advanced, although among individual commodities
there were important exceptions to the upward movement.
Since mid.September, spot cotton prices have risen about 2
cents per pound, while cottonseed prices have advanced about
$5.00 per ton. The price of clean wool is up about 30 cents
per pound above mid-September, although it is apparently
not high enough to arouse much interest among southwestern
sheep raisers. Grain prices have made notable advances,
reRecting the prospects for increased domestic export of
grains and the effects of unfavorable weather in other important grain producing countries. Rice prices have recovered
from the low levels reached in late September, although they .
are considerably below midyear levels. Cattle prices declined
in October as stocker demand weakened in the face of continued drought and an uncertain feed supply situation. Broiler prices in Texas turn cd downward in October, falling about
4V2 cents per pound below the September level, as processing plants prepared to handle the large turkey crop.

Reports from the Texas Savings Bond
Division of the Treasury Department
indicate that interest in the Defense Bond
Drive may be picking up, following a
rather slow start in September. For cxample, as of October
5 on ly one city in Texas, Pasadena, had qualified as a "Flag
City" under the provisions of the Drive. During the follow·
ing 2 weeks, however, both Fort Worth and Paris were
designated flag cities. By October 18, Oklahoma had reached
the 22-city mark in its drive for a total of 45 cities, in
honor of the Oklahoma Forty-Fifth Division, and 102 cities
in the Nation had earned the distinction.
During September, the first month of the Drive, sales of
savings bonds in the District totaled $9,400,000, or $1,300,000 less than sales in September 1950, a month when there
was no drive in progress and at a time when consumer purchasing was unusually high. Sales likewise lagged behind '
the year-earlier total during the first 2 weeks in October,
but showed some improvement in the following week. A
somewhat more favorable trend was shown with respect to
redemptions, as the September total was $6,600,000 below

MONTHLY BUSINESS REVIEW
the year·earlier figure, and the total for the first 3 weeks
• in October was approximately 3,700,000 less. In the Nation,
. as in the Distri el, savings bond sales during September fell
below September 1950 sales, while redempti ons were some·
what less than the comparable 1950 fi gure.
The Treas ury accepted tenders of bids on October 17
for a new issue of 144-day Treasury bills offered in the
amount of approximately $1,250,000,000. Th e bills, labeled
Tax Anticipation Series, were dated October 23, 1951, and
will mature on March 15, 1952. The Secretary of the Treas·
ury announced th at the bills were issued to meet anticipated
cash requirements of the Treasury and that they would be
acceptable at maturity in payment of income taxes. The bills
were sold at an average rate of discount of 1.550 percent. AI·
though sale of the new security represents the first occasion
sin ce World War II on which bills of other than 3·month rna.
turit y have been issued, Treasury bills of varying maturities
were uscd rather often in prewar years to anticipate quarterly
lax paymen ls. The Treasury announced on October 10 that an·
other offering of bills would be made " within the next few
weeks" in anticipation of taxes due Jun e 15, 1952. The prob·
able amow1t of the issue was set at about $1,000,000,000.
Upon the co mpletien of the proposed finan cing, the Trcasury
will have borrowed 84,250,000,000 of new money through
bill offerings since the beginning of the current fiscal year.
On October 11 the Secretary of the Treasury announced
that holders of the 114·percent Treasury notes maturing
• October 15 and November 1 and outstanding in the amounts
. of $5,940,578,000 and $5,253,075,000, respectively, sub·
scribed to 10,861,894,000 of the refunding issue of 111'2·
month 1%'percent certificates of indebtedness. Cash redemp.
tion of the October maturity amounted to slightl y more than
1 percent; the November maturity, slightly more than 5
percent

161

the increase in this bank's participation in the System Open
Market Account. During the month, member banks in the
Distri ct liquidated the entire amount of their indebtcdness
at the Federal Reserve Bank.
CONDITION OF THE FEDERAL RESERVE BANK OF DAllAS
(In 'kousands of doll ars)

October 15,
195 1

Item

Between September 15 and October IS, earning assets
of the Federal Reserve Bank of Dallas rose $34,164,000, due
cntirel y to the in crease in holdings of United States Govern·
• ment securities. Decreases in the principal asset and liability
accounts included a reduction of $68,298,000 in gold cer·
tificate reserves and contraction of $31,170,000 in member
bank reserve deposits. Approximately one·half of th e de·
crease in gold certificate reserves is directly attributable to

September 15
1951

$ 666,398

Total gold ,.rtillce'. rOler"8s • .. • . . .. .... $ 546,096
Discounts fo r member banks .••• ••..• . ..•
o
Industrial advances ••••.. • ..... •.. .. .•..
77
Foreign loans on gold .•• .•.. •.••.. .. •. .
o
U. S. Government securities .....•..... •. .
1,142,084
Total earning Quets •• ....•.• ••• .... ••.•
1.142,161
Member bonk re.e",e deposits • . •. . . . .. . •
951,238
Federal Reserve noles in actual circuIQtion ••
676,525

265

$ 614.394
2,131
75

886,671
886,936
824,425
620,540

1,105.791
1,107.997
98 2,408
668.525

o
o

o

Debits to deposit accounts reported by banks in 24 cities
of the District declined 3 percent in September from the
total reported for August. At this lower level, however, debits
were 5 percent above the September 1950 figure. Increases
and decreases were almost evenly divided among the individ·
ual cities, with gains ran ging up to 14 percent and losses
as much as 8 percent. Corsicana, Texas, showed the largest
increase, while Corpus Christi and Austin, Texas, had the
larger losses. The annual rate of turnover of deposits, or the
am1Ual rate of use of deposit acounts, was 14.4 in September,
as compared with 14.9 in August and 14.4 in September 1950.
Most major assets and liabilities of the weekly rcporting
member banks in leading cities of the District increased duro
BANK DEBITS, END·OF·MONTH DEPOSITS,
AND ANNUAL RATE OF TURNOVER OF DEPOSITS
(Amounts in thousands of dolla rs)
DEPOSITS'

DEBITS1

The sharp upward trend in currency circulation during
recen t months has attracted considerable attent ion and in·
terest. In both the District and the Nation, currency in cir·
culation has ri sen by considerably more than the usual sea·
sonal amount For example, between June 30 and October
IS, Federal Reserve notes of this bank in actual circulation
increased $39,150,000 to a record level of $676,500,000. This
increase co mpares with a rise of $6,800,000 in the com·
parable period last year. In the Nation, between June 30
and October 10, money in circulation rose $639,000,000, as
compared' with an increase of only $183,000,000 during the
com parable period last year. In addition to the stimulus
arising from seasonal influences, several reasons have bcen
suggested as probable factors in the increase. Among them,
black· or gray·market operations, tax evasion efforts, and
cash hoardin g are pcrhaps the more noteworthy.

October 15,
1950

Percentage
change from

Annuol rate of turnover

City
ARIZONA
Tucson .......... ....
LOUISIANA
Monroe •• •... ••••• · •
Shreveport • • ..•.•.••
NEW MEXICO
Roswell •••.•••• •. • .•
TEXAS
Abilene • .•...•••••.•
Amarillo •••.• . • • ••• •
Austin •.•.••••••••••
Beaumont •• . ••••• . .•
Corpus Christi • • •• ••••
Corsicana .•• • • • •• •• •
Dallas . . ..• • ...•. •..
EI Pa so ••.••..••••.•
Fort Worth •••••••. • •
Gol ... eston ••..• .•...•
Houston ••.••.. • •... .
la redo •• • ••••.•.. .•
lubbock •••• ••.. .• ••
Port Arthur •••.••••••
Son Angelo •••.• •••..
Son Antonio •••••••••
Texa rkana I ••• •••••••
Tyler ••• • •.• . .••••• •
Waco • ••••• ... ••.••
Wichita Falb ••• ••••••

$ 76,684

18

4

.44,296
167, 805

5

4

Total-24 cities. •..•. •• $5,075,909

-

4
22
- 18
3
5
7
2
6
14
- 3
7
12
4
II
- 3

-

-

4 7

9.8

9.5

9.5

I

-

94,638

7

5 -

20,092
49,674
131 .889
125, 390
118.442
117.513
15.326
1.354.610
149,377
466,216
75 ,754
1.406,709
19,63 1
85 ,990
39.967
"'2,188
348,488
20.652
48,591
71,962
78.663

46,886
184,831

11.4
10.8

11.8
10.4

10.9
10.8

2

)4.976

9.6

10.2

10.1

1
1
8
2
8
14
2

52,724
104,240
111,136
87,784
98,529
22.343
957.915
127.862
364.438
97.588
1,092,413
21,400
89,894
41,226
53,842
377.444
23.69'
51.655
82,158
102.519

11.5
15.4
13.7
16.2
1 4.6
8.3
17.0
14.0
15.5
9.4
15.6
11.0
11.5
11.4
9.6
11 .0
10.4
1 1.4
10.8
9.2

13.0
13.8
16.8
15.2
14.5
8.5
18.4
13.3
15.0
9 .6
15.4
9.6
12.2
11.2
10.9
11 .3
10.3
11 .5
11.6
8.6

11.6
15.6
14.9
16.3
1 6.4
7.4
17.8
14.0
16.2
9.2
16.8
12.0
11.2
11.8
9.4
11.8
9.8
11.6
9.8
9.2

$4.312.135

14.2

14.4

14.9

1
3
1
6
7
4
6
6

5
5

, - 2
- 5
12
18
,
5

-

3

$

Debits to deposit accounts ellce pt interbank accounts.
, Demond gnd time deposits, including certifled and afflcers checks outstanding but
exduding deposits to the credit of bonks.
, This figure includes only one bank in Texarkana, Texas. Tota l debits for all banks in
Texarkana, Texas-ArkonSCIs, Including two bonk s loca ted in th. Eitlhth District, amounted to
$36,117,000 for the month of September 1951.
I Indicates change of less than one-half of 1 percent.
J

MONTHLY BUSINESS REVIEW

162

ing the 5 weeks ended October 17. Particularly notable
changes occurred in deposits and investments in United
States Government securities. Increases in deposits, loans,
and balances with banks, including reserves with the Fed·
eral Reserve Bank, were confined principally to the last week
of the period.
Deposit increases totaling $143,668,000 were reported duro
ing the 5 weeks, with the gain in demand deposiis of in·
dividuals, partnerships, and corporations arising from the
expansion in loans and investments, and the increase in inter·
bank demand deposits accounting for most of the expansion.
The increase in interbank demand deposits amounted to
$83,235,000 and reflects the seasonal build.up of balances
with correspondents by country banks. United States Gov·
ernment deposits, which rose sharply following the Septem'
ber 15 income tax date, showed a net increase of $15,909,000,
while deposits of states and political subdivisions declined
$17,448,000. ReAecting the upward trend of liquid savings
in recent months, time deposits of individuals and businesses
rose $7,699,000.
CONDITION STATISTICS OF WEEKLY REPORTING
MEMBER BANKS IN LEADING CITIES

Eleventh Federal Reserve District
(In thousands of dollars)

Item

October 17.
1951

TotallO<lns (gron) and investments ...• , ...• ,. $2,771,833
TOlalloaru---Net l •• • . . .• . . ••• . . . • • . . . • • • 1,.451,851
Tota l loons-Gron ..•. . .. . .... . . . .•..... 1.468,174
Commercia l, industrial, and agricultural
993,306
loons •••••.•• . . . .•.. .. • , .. . ..... . ,
L
oo"s to brokers and dealers in securities..
8,899
Other I??ns for purchasing or corrying
60,532
secuntles " ,.,""',." .... ,., .. ,. ,
122,741
Rea I estote loons ...•....•....•.•..•. ,
Loans to banks •••. . •..•• . ...•.
1,490
281,206
All other loons ••••• , •..•....•....•...
Totti 1 investments, ••••...•.... . . ... • ... . 1,303,659
U. S. Treosury bills •••.•••••.•• .. •••...
218,247
U. S. Treosury certiflcotes of indebtedness.
143,154
U. S. Treasury notes •••••••..• , •..•...•
195,668
U. S. Government bonds (inc. gtd.
obligations)., • .••.•.••...•..•.• , .••
577,2'7
Other securities •••• , , •.• , ..•••.. , •.•. ,
169,343
5Bd,251
Reserves with Federal Reserve Bank. , ...•....
457,OB9
Bala nces wilh domestic bonks ••........•...•
De mond deposi ts--odiusted~ •• ••.• , •.• . .•. . . 2,263,388
433,656
Time deposits except Government ••••••••••.•
Un iled States Government deposits., ••.. .. ...
72.789
B49,661
Interbank demond deposits •.•••.•.•... . •...
Sorrowings from Federal Reserve Bank ••••....
o

October 18, September 12,
1950
1951
$2,659,357
1,373,242
1,3B6,743

$2,726,989
1,444,912
1,461,143

944,259
6,581

983,658
7.090

61,288
113,824
'00
260,391
1,272,614
108,825
56,590
318,539

60,113
123,778
9,301
277.203
1,265,846
I B5,417
115,908
216,813

633,659
155,001
494,7B7
351,503
2,122,379
437,7'0
54,443
721,234
3,100

575,157
172,551
562,985
432,424
2,283,'60
'29,711
56,880
766,426
0

I After deductions for resel"ll!!s cnd unallocated charge·offs.
~ Indud es all demond deposits other thon interbonk and Uniled Stotes Government, less
cash Items re ported os on hond or in process of collection.

The weekly reporting member banks increased their in·
vestments in the amount of $37,813,000 during the 5 weeks
ended October 17, with holdings of Government securities
more than accounting for the change, since investments in
municipal and other non·Government obligations declined.
Treasury bill holdings expanded sharply, as the S32,830,000
addition to these portfolios represents an increase of 18
percent. Investments in certificates and bonds also rose, but
the increase in the former reflects principally the exchange
of matu red notes for the Treasury refunding issues on Oc·
tober 1 and October 15.
Loans rose $7,031,000 during the 5 weeks, with commer·
cial, industrial, and agricultural loans more than accounting
for the change. Security loans and the category comprising

consumer loans also increased, but this expansion was more
than offset by decreases in real estate loans and loans to
banks. Seasonal demand for bank credit to finance the move· •
ment of cotton was strong, but in most weeks of the period
most other commercial and industrial borrowers reduced the
amount of their outstanding bank indebtedness.
GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
Eleventh Federal Reserve District
(Averages of doily flgures. In thousands of dollars)
COMBINED TOTAL
Dote

Gross
demond

Time

RESERVE CITY BANKS
Gross
demand

Time

COUNTRY BANKS
Gross
demand

Time

Septe mber 1949. $5,146,942 $64B,045 $2,503,549 $421,452 $2,643,393 5226,593
September 1950. 5,726,635 659,286 2,806,B06 410,905 2,919,B29 248,381
Moy 1951. ...
5,801 ,415 658,973 2,697,033 362,380 3,104,3B2 296,593
June 1951 •....• 5,820 ,309 669,791 2,720,158 374,734 3,100,151 295,057
July 1951 . •....• 5,B55,513 673,533 2,746,696 376,455 3,10B,B17 297.078
Augud 1951 ..... 5,966,447 672,892 2,807,435 373,116 3,159,012 299,776
September 1951. 6,169, 109 675,IB6 2,917,338 371,361 3,251.771 303,825

Nonfarm employment in Texas in Oc·
tober rose to about 2,580,000 persons,
or 5 percent more than a year ago, as
the result of recent increases in hirings
in 15 of the 17 major labor market areas in the State. The
Dallas labor market enj oyed the largest gain, estimated at
5,700 persons in the last 2 months, as aircraft production,
the State Fair, and retail trade provided more jobs. In the
State, trade and manufacturing, each, accounted for large
shares of the recent expansion of employment, with manu· •
facturing employment amounting to about 465,000 persons, •
or 11 percent above a year ago. The rise in nonfarm em·
ployment during the past 2 months has shown up in numel'OUS
industries, with about two-thirds of the gain being in non·
defense lines.
Crude oil production in the District established another
record at 3,136,000 barrels per day during September, up
53,000 barrels daily from August and 207,000 barrels daily
from a year ago. A third consecutive monthly gain is in
prospect during October, which began with moderately in·
creased output as the result of higher production allowables
in Texas. Production in the Nation continues to follow the
record ·breaking pace set by this District. However, a reduc·
tion of Texas allowables by 111,000 barrels per day in No·
vember is expected to cut back output in this District to
about the level of last April.
One [actor in the November cut·back is the greater·than·
expected improvement in the national stock position, which
has caused the Petroleum Administration for Defense to
relax its opposition to a reduction in crude oil output. This
building up of petroleum inventories has been felt particu·
larly at inland points not able to take advantage of the
deficit in world supplies resulting from the Iranian shutdown.
In west Texas this problem has been especially acute, with
storage rising about 25,000 barrels per day during Septem·
ber, though some decrease in accumulated stocks occurred in
early October. A closely related factor has been the over·
crowding of crude oil pipe lines from west Texas. At some
points in the rapidly developing Spraberry trend the well

41

MONTHLY BUSINESS REVIEW

completion pace is glvmg rise to transportation problems
similar to those during the early days of the Scurry County
t reef fields or the East Texas field. Still another factor in the
reduction of allow abies has been the increased waste of
natural gas resulting from the flaring of casinghead gas.
Such gas-a by-product of the rising oUlput of oil-has
been produced recently in amounts appreciably in excess
of existing oUllets and processing facilities_ Siuce these factors in the cut-back center particularly in west Texas, half
of the reduction in Texas allowables for November was in
that section of the State.

t

CRUDE O IL PRO DUCTION

163

Capital expenditures by the oil industry were estimated
recently at over $3,000,000,000 for 1951, or nearly 40 percent more than during the previous year. While crude oil
production will account for more than half of this record
total, refining, marketing, pipe lines, and other plant and
equipment expenditures also will be large. Such large expenditures indicate that shortages of steel and other metals
are not proving insurmountable obstacles to expansion. Such
expansion is in line with the need's of the defense program
and the short-run demands on American capacity due to the
Iranian shutdown and also reflects the confidence of the
industry in its own continued growth.

(Barr.r,1
September 1951

Increase or decrease in daily

RAILROAD COMMISSION OF TEXAS

overage production from

Area

Total
production

Doilyavg.
production

Sept.1950

33,830
169,628
508,562
263,575
57,203
397,693
276,840
120,853
83,697
114,987
993,047
159,717
84,770
2,866,709
143,628
125,202
3,135,539
3,154,493
6,290,032

3,047
16,676
36,033
25,932
13,046
-13,653
-27,103
13,450
8,627
42,549
68,778
3,237
-6,660
197,612
8,878
-161
206,329
182,640
388,969

OIL AND GAS DISTRICTS

August 1951

ELEVENTH DISTRICT

Texos R. R. Com. Districts
1 South Central. . . . . . . . .

1,014,900
M1ddle Gulf.. . ....... 5,088,850
Upper Gulf... . . . . . . .. 15,256,850
L
ower Gulf.. . ........ 7.907,250
East Central.. . .... ..• 1,716,100
Northeast. ........... 11,930,800
Easl r.XO$. •• •••••• 8,305,200
Other flelds. . . . . . . .
3,625,600
7b North Centrol. .. , . •••• 2,510,900
7c West Central. ........
3,449,600
8 West •• •. ....•.•••••. 29,791,400
9 North.. . .. . .. .. ...... 4,791,500
10 Panhandle...... .. .... 2,543,100
Total Texas •••...... 86,001,250
New Mexico. .. .. . . . ....... 4,308,850
North louisia na ••• ,.........
3,756,063
Total Eleventh District ...... 94,066,163
OUTSIDE ELEVENTH DISTRICT. .. 94,63",787
UNITED STATES, .. .. .. .. ..• .• 188,700,950

2
3
"
5
6

119
5,131
12,901
2,188
1,322
7,491
5,375
2,116
1,649
4,443
21,771
-157
-1,275
55,583
-1,623
-1,803
52,157
10,770
62,927

SOURCE; EstimQled from AmericQn Petroleum Institute weekly reports.

I

SOUTH ctNTR"L

2.. NID(lL[ GULF
,.

Refinery activity in September decreased fractionally in
the District but rose to a new record in the Nation. Crude
runs to refinery stills exceeded year-earlier levels by 10 percent in both the District and the Nation. National stocks of
crude oil rose during September to 256,000,000 barrels, or
14,000,000 more than a year ago. Stocks of each of the
four major products-gasoline, kerosene, gas and distillate
fuel oil, and residual fuel oil-exceeded year-earlier levels
by from 8 to 26 percent. Total stocks of crude oil and these
four major products at the end of September amonnted to
546,000,000 barrels, nearly 14,000,000 barrels more than
a month earlier and 53,000,000 barrels more than a year ago
but about the same as the high level reached in the fall of
1949_

These figures indicate that the drain upon the Nation's
supplies of crude and refined oils caused by the loss of supplies from Iran has been at least temporarily eased as the
result of increased production in other Middle Eastern countries, the high output in the United States, and retrenchment
in foreign consumption. Continued relatively high-level production in this country and abroad will meet the seasonallv
rising domestic demand and most of the essential forcig;,
needs until about the end of the year. However, during the
first quarter of 1952, an appreciable drain upon United
States stocks, particularly of refined products, probably will
prove necessary, assuming Iranian supplies remain unavail•
able. Some further building up of burning oil stocks in this
country before the impact of the colder part of the heating
season would provide a better inventory cushion for emergencies.

UPPER GULP'
4. LOWER GULF
5. EAST CENTRAL
6. NORTH[.I'$T
7.. NORTH COITAAL
7~ WEST ct:NTRAL
8. WEST
9. NORTH
/0. PANHANDLE

The total value of construction contracts awarded in the
District during September, estimated at $94,000,000, was
practically unchanged from August, with residential awards
being up 16 percent, while nonresidential awards dcclined 9
percent_ Total awards were 18 percent under the year-ago
level, with residential awards heing 25 percent lower and
nonresidential awards, 13 percent lower than last year. The
nonresidential awards included the highest volnme of public
works contracts since last spring. However, nonresidential
building and utility awards were, each, at the lowest levels
since the early months of this year_ During the first 9 months
of 1951, total award's approximated $1,100,000,000, or 25
percent more than during the corresponding period of last
year. Residential awards were 14 percent and nonresidential
awards, 34 percent ahead of last year.
Shortages of materials, and National Production Authority
controls over their usc, appreciably curtailed the initiation of new commercial buildings, schools, bridges, and other
large and medium-sized projects. Industrial projects likewise
are hindered unless essential for defense. Of 210 applications
in Texas for the controlled materials- steel, copper, and
aluminum-for fourth-quarter 1951 use in construction,
only 21 were approved. The estimated construction cost of
the one-tenth receiving approval is $42,000,000. Thirteen

164

MONTHLY BUSINESS REVIEW

other projects involving $1,500,000 received approval be·
cause materials were already on hand. Many smaller proj·
ects, such as low·cost and medium·cost housing, need rela·
tively little of the controlled materials and, so, do not need
NPA approval.

VALUE OF CONSTRUCTION CONTRACTS AWARDED
(In thousands of dollars)

September
Area and type

1951p

January-September
September
1950

August
1951p

ELEVENTH DISTRICT . • $

94,424 $ 115,084
38,687
51,364
55,737
63 ,720
UNITED STATES' •.... 1,082.855 1,2 86,541
Resi dential • •.•...
479.716
549,5 85
AU other •. •••••••
603,139
736,956

1951p

1950

94,552 $ 1,099,2 36
33,477
468,960

Residential •• •••.•
All other •.• . .....

61,075

1,262,811
567,566
695,245

882,849
412,309
470,540

630,276
12,713,561
.4,919,153
7,61.4,452

11,109,746

5,235,896
5,873,850

1 37 stotes eQst of Ihe Rocky Mountalnl.
p Preliminary,

SOURCE: f. W. Dodge Corporation.

BUILDING PERMITS
9

months

1951

P.rcenta".
change in
valuation from
Valuation

City
LOUISIANA
Shre¥eport. • . .

Percentage
change in
valuation
from 9
months

EI Paso ••.•...
Fort Worth . ...
GolvesIOfl • . . . .
Houston •••• .. •
Lubboek . •. .. .
Port Arthur .•..
Son Anlonio • ••
Waeo .... ...•
Wichita Falls •••

World consumption of cotton during the 1950·51 season
is estimated by the trade journal Rayon Organon at 30,259,.
000 bales, or only 1 percent less than the 1936·37 record.
Since this consumption was about 4,559,000 bales greater
than production, the world stocks of cotton decreased. Dur·
ing the 1950·51 season the United States accounted for 35
percent of the total world consumption, compared with 32
percent during the 1949·50 season and a prewar average of
about 25 percent.
The same journal estimates that during the current 1951·
52 season world consumption will approximate 30,000,000
bales, of which the Unit.ed States will account for about
9,000,000 bales, Thus, United States consumption will be
down about 1,500,000 bales, while foreign consumption is
expected to increase about 1,000,000 bales.

1950
<147 $

2,304,992

-45

121

3,052

$ 13,252,841

449,547 -70
3,275,821
71
4,841,045
53
1,973,7 87
264
1, 340,018 -15
10,612,734 -26
603,653 -66
2,871,344 -22
93,541 -62
11 ,29 ",399 - 6
1,0 89,282 -30
375,276 _2
3,014,345 -39
840,675
6
339,588
20

48
149
30
626
15

9 10
3,048
2,103
2,252
2,887
15,480
2,265
6,152
1,052
8,668
2,521
1,471
11,028
1,841
931

5,564.664
16.972,75 9
24,562,523
6,009,164
16.008,436
80,192,558
12,72 8,893
36,941,780
6,914,684
109,537,703
12,890,494
4,535,131
36,403,481
11,839,369
5,30 3,459

2 65,661

$399.657,939

-49

TEXAS
Abilene ...... .
Amorillo . ..•..
Austin •••.•.. •
Beaumont .. . . .
CorpuJ Christi ••
Dollas ...•. .. .

Eight Texas areas are among the 41 in the Nation desig·
nated as critical housing areas. Such areas contain military .
installations or defense production activities and are per . •
mitted to receive special government aids and to enjoy relaxa·
tion of real estate credit restrictions. Recently desi gnated de·
fense areas are Kingsville, for personnel of the Naval Auxil·
iary Air Station and defense workers, and Wichila Falls, for
personnel of the Sheppard Air Force Base, Areas previously
designated as critical include the areas of San Marcos, Lone
Star, Borger, Mineral Wells·Wealherford, Florence.Killeen,
and Brazoria County.

105
505
213
267
264
1,917
212
630
152
894
146
148
1, 153
208
65

Total ..... .. . . .. 7 ,326 $45,320,047

-14

,.

10
8
20
- 3
_35
_66
-58

-64
- 8

-51
1

-22

-29

-22

-17
-36
- 2
18
-17
_33

-5
-13
-24
29
-19

The high level of domestic consumption during the 1950. •
51 season, when 10,642,000 bales were consumed, reRects in .
part the military buying program, which accounted for at
Icast 700,000 bales-used in the form of duck, webbing, and
other texLile products. The balance of the 1,787,000·bale in·
crease over the previous season was accounted for largely
by consumer scare buying and efforts to build up inventories,
forces which now appear appreciably weaker- inventories
are lull, few shortages have become apparent, and prices have
eased. Only partially offsetting the expected decline in civilian
consumption during the 1951-52 sea~on is the rise of military
requirements to an estimated 1,000,000 bales,

•