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MONGJ'HLG)(
REVIEW
FE D E R A L
R ES E R V E
Vo\. oW, No. 11
~
o
F
DALLAS
DALLAS, TEXAS
November 1, 1955
THE EM PLO Y M ENT SITUATION
To the majority of the people in the Southwest and in the
Nation, the primary measure of prosperity in a given eco·
nomic situation is the ability to obtain a job at a reasonably
good level of pay. Even to trained observers, the composition and utilization of the labor force is a vital measure in
the progress of any economy. In fact, to many in the latter
group, the starting point for prosperity throughout the
economic structure is more jobs at higher rates of pay. Thus,
in a period of growth in most lines of economic activity,
as has been evidenced in 1955, it is probably worth while to
~ analyze in some detail the current employment situation.
Included within this general framework are the changes in
the over-all employment record and any significant differences which may have occurred within the major components
of the labor force. The relationship of such changes to the
trends which have been apparent since 1950 will provide
some insight into the employment situation today and the
outlook for the near future.
,
BANK
The data used in the following discussion are based on
nonagricultural wage and salary employment as reported
by the employment security agencies of the five states lying
wholly or partially within the Eleventh Federal Reserve District. These data exclude agricultural workers, proprietors,
firm members, self-employed persons, independent contractors, and unpaid family workers. The five-state area including Arizona, Louisiana, New Mexico, Oklahoma, and Texas
will be referred to as the Southwest.
A Backgroun d of Progress
Economic conditions and their effects upon employment
during late 1953 and throughout 1954 have a distinct bearing upon tlle basic interpretations which should be placed
upon the employment data for 1955. The mild recessionary
movement which commenced in 1953 and terminated in
mid-1954 caused a slight contraction in employment totals
for the early months of 1954. The decline in employment
in the Southwest was both smaller and of shorter duration
than that which occurred in the Nation. Inspecting the details of this brief recession in total employment, it is significant that most of the decline ~ccuue<i because of the de-
crease in Government operations, particularly ordnance.
Manufacturing employment declined contraseasonally during
the latter part of 1953 and more than seasonally in early 1954.
Nonmanufacturing employment, which took a sharper downturn in the first quarter of 1954 than could be expected seasonally, turned upward in the second quarter. On balance,
total employment declined until the April-June period in 1954.
Thus, in calculating the year-to-year gains in 1955, some
allow alIce must be made for the slightly lower levels of employment in early 1954. However, this adjustment need not
be considered a major factor and will be ignored in discussing the recent trends in relation to the 5-year average.
The Current Situati on
As the southwestern and national economies continued
their recovery into 1955, most major indexes of economic
activity showed rather marked increases over their comparable levels in 1954. However, as is characteristic of a recovery period, nonagricultural employment lagged behind because there was sufficient flexibility in the utilization of the
basic labor force to allow sizable increases in production
and hours of work before there was need for additional workers. Hence, it was not until the third quarter of this year that
employment advanced appreciably over the year-earHer totals.
During the third quarter of 1955, nonagricultural wage and
salary employment in the five southwestern states established
a new record, with employment in September totaling 3,924,700. This is the first new record to be established since
December 1952, although seasonal gains should cause record
totals for each succeeding month through the remainder
of 1955.
During the first 8 months of this year, nonagricultural
employment averaged 3,848,400, or 2.1 percent more than
in the comparable period of 1954. In the same period, aver:
age nonagricultural employment in the Nation was only 1.5
percent above the corresponding 1954 figure. Over both the
past year and the 5-year period, the growth in employment
has progressed more rapidly in the Southwest than in the
Nation. Betw()en _
J95Q1!nd ~~~5L.l£ta.! ~!"l?!'?}ll1ent ~~!h~
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
MONTHLY BUSINESS REVIEW
146
Within the south west total, Texas accounts for about 58
percent of nonagricultural employment and the remainder is
distributed among the four other states in this order: Louisi·
ana, Oklahoma, Arizona, and New Mexico. This order of
distribution has remained the same since 1950, although the
relative percentages are under constant change. Employment
has been most dynamic in the States of Arizona, New Mexico,
and Texas over both the 5-year period and the 1954·55 period. Between 1954 and 1955, Arizona employment showed
the largest relative gain, followed by New Mexico, Texas,
and Oklahoma, with Louisiana showing a loss in employment.
INDEX OF NONAGRICULTURAL EMPLOYMENT
(1950·
roo)
IQUAflITE:RL'r
'[lte
0
0
1>0
I
SOUTHWEST
120
'"
140
.-
i
~
120
.-
,. ~~'
0
"
'0 o ~
10
1
00
UNITED STATES
•
•
0
0
Over the S-year period in Arizona, much of the growth
has been associated with developments in the electronic and
aircraft industries, while New Mexico growth in nonagricul·
tural employment has stemmed largely from the atomic
energy program in that State.
90
80
7 0,
1950
1951
1952
1953
1954
1955
.,' 7
o
SOURCES : SIGh .",pl o, ",.nl"Q' "~ '"
U.S B~'.a.. or lobo< $tQIo.t'CI.
Nation increased 13 percent, whereas employment
southwestern states increased 19 percent.
lfi
the
To compare the recent gains in southwestern employment
against the average rate of growth during the past 5 years,
it is important to have a clear understanding of the factors
affecting that average rate. Very sharp increases occurred
in nearly all categories of employment at the start of the
Korean War, with more moderate gains coming after the
initial impact. Most categories showed losses between 1953
and 1954 as a result of the mild recession. Therefore, the
average annual rate of growth between 1950 and 1955 is
an average of extremes combined with moderate net gains
in the intervening years. Since the war-induced gains were
much larger than the recession·bred losses, the average rate
generally is higher for most employment categories than
either the 1954-55 rate or the expected rate over the coming
years. In fact, the rates of growth shown in total nonagricultural employment averaged 3.2 percent over the past 5 years
and only 2.1 percent in the most recent period.
DISTRIBUTION OF NONAGRICULTURAL
WORKERS, BY' STATE
In Texas, employment growth has been more widely dif·
fused. Important factors accounting for the improved level
of employment in this Slate have been the high level of con·
struction; a significant increase in industrialization, particu.
larly in chemicals, metals, and transportation equipment; and
the growth of a widespread market requiring distribution
facilities .
Employment gains in Louisiana and Oklahoma have lagged
substantially behind those of the other southwestern states.
Louisiana employment during 1955 has been retarded by
sharp cutbacks in shipbuilding and heavy industrial construe·
tion, as well as by strikes in transportation and utilities.
However, in August, Louisiana employment totaled 693,900,
or .4 percent more than in August 1954. In Oklahoma, a
sharp gain in manufacturing employment was not sufficient
to maintain a growth comparable with the more western
states because nonfactory employment showed only slight
increases.
In both the Southwest and the Nation, the largest number
of wage and salary workers are employed in the non manufacturing industries. During the first 8 months of 19S5, non-
SOURCES OF NONAGRICULTURAL EMPLOYMENT
SOUTHWEST
SOUTHWEST
flflST [ IG HTWONTH$ r;, 19!!5
FIRST [ I GMT WOHTHS OF 19!!i!l
TRADE
MANUFACTURING
_IIL_N".
GOVERNMENT
MEX ICO
SERVICES AND MISCELLANEOUS
TRANSPORTATION AND UT ILITIES
CONSTRUCTION
MINI NG
FINANCE , INSURANCE,AND REAL ESTATE
SOURet:
,
Slor","prfJ'fI'I.~I _oOlncr ...
_L-...1.._ _" - _ - '
~
MONTHLY BUSINESS REVIEW
factory employment in the Southwest accounted for 81 per.
cen t of total nonagricultural employment and showed a 2.1.
percent increase over the comparable figure in 1954. The
major segments of nonmanuiacturing employment in the
order of their importance are trade, government, services,
transportation and utilities, construction, mining, and finance.
With one exception, this order is the same as in the Nation
as a whole; finance outranks mining in the Nation. Between
1954 and 1955, all major employment categories showed in·
creases except tran spor tation and utilities.
147
GOVERNMENT EMPLOYMENT
SOUTHWEST
THOUS.olHDS
000
~
tlllOffTHI..YI
,*OAk[I'I'
THOUS,U,OS OF ..... 0111(
'"
000
40 0
r-
40 0
-..J
'-
450
400
STATE AND LOCAL
0
300
30 0
3 00
Nonmanufacturing Employment
20 0
Trade
20 0
The wholesale and retail trades of the Southwest, account·
ing for approximately one·fourth of nonagricultural employ·
ment, constitute the largest of the employment categories.
Averaging 984,200 during the first 8 months of 1955, trade
employment was 18,900, or 2 percent, above the comparable
figure a year earlier. In general, this gain represents a con·
tinuation of the trend of the past 5 years, in which trade
employment has moved up an average of 3 percent per yearexcep t in the recession period of 1953·54. The most imp or.
tan t types of establishments in the continued growth of em·
ployment in this category have been food stores, general
merchandise stores, and wholesale establishments.
~
The relative importance of trade employmcnt in the rIve
southwestern states does not vary significan tly from sta te
to state, with the lowest ratio of trade to total nonagricul.
tural employment- 23 percent--occurring in New Mexico
and the highest ratio- 27 percent- occurring in Texas. The
sou thwestern average so fa r in 1955 has hee n 26 perccnt·,
compared with a nationa l average of 22 percent. Trade em·
ployment is a particularly volatile type of employment, with
sharp seasonal peaks d uring the year. This ca tegory requires
an especially large degree of flexibility in the labor force to
handle the part·time cmployment in rush periods, such as
Easter or Christroas.
.,
-
150
SOUItCE: 5'1"
2 00
FEOERA~~
2 00
1953
''''~I!'IUI
1
954
1955
I 50
...n.c:I...
Government
With a large number of military and defense installations
and with its population increasing rapidly and locating in
concen trated industrial areas, the Southwest shows an un·
usually large percentage of people employed in government
positions. In fact, government jobs supply 17 percent of
total nonagricultural employment in the Southwest, com·
pared with 14 percent in the Nation as a whole. Between
1954 and 1955, government jobs increased over 4 percent,
for the sharpest year·to·year increase since the 9·percent
g rowth between 1950 and 1951. However, this earlier gaininduced by the defense emergency- as well as the sharp
decrease following the Korean truce, occurred mainly in
Federal Government employment. The recent growth has
been attributable largely to the development of activities at
the state and local level, where the demand for employees
by ed ucational instituti ons has been the most important fac·
tor. In many respec ts, the 1954·55 gain in government em·
ployment probably represents more acc urately the type of
growth which can be expected in the coming years, because
the continuing gain in population in urban areas will requirc
even more local government services.
TRADE EMPLOYMENT
I. 100
THOUSANDS OF
1,200
lOUARTERL'I'I
I. 000
1,000
..,
I, 200
L
V
~~
V
•00
0 /
80
700
Services and Miscellaneous
THOUSANDS OF WOR KERS
1,10
.0
Within the southwest total, New Mexico, with the smallest
employed labor force, depends upon government for 25 per·
cen t of its jobs. In Texas, government employment accounts
for only 15 percent of total employment. The other states of
the Southwest range between these extremes.
SOUTHWEST
OR EAS
8 00
19'"
19:>1
1952
1953
1
954
1955
7 00
Services and miscellaneous employment, accounting for
12 percent of total nonagricultural employment, has con·
tinued to expand in 1955 under the impetus of enlarging
demands of consumers for personal and professional services.
Tou rist industries, lawyers, doctors, engineers, and such servo
ice industries as hotels, laundries, and barber shops have en·
j oyea a greater demand for their services in line with a con·
centrating population, nearly full employment, and an in·
creased amount of leisure time for most of the workers in
148
MONTHLY BUSINESS REVIEW
the Southwest. The increasing use of mechanical equipment
in the home, on the farm, and in business has required additional servicing facilities, and the more extensive use of automobiles has boosted gasoline station demands for labor.
During the first 8 months of 1955, service employment
increased an average of 1 percent over the comparable period in 1954, whereas during the 1950-55 period, the average yearly rate of gain was more than 2 percent. However,
the future looks particularly bright for further gains in
service employment as tourist, recreation, and amusement
industries are expected to expand sharply. More skilled labor
will be required to meet the advance of automation, and
professional services, particularly of engineers, will be in
even larger demand.
Within the Southwest's service employment gain, Arizona
has shown the sharpest relative adVance, reflecting chiefly the
strong stimulus from the developing tourist industry and the
needs of expanding numbers of industrial employees and their
families. In terms of absolute numbers, the largest gain has
occurred in Texas as the growing trend toward concentrations of population in the larger urban areas has increased
the demand for many services. Louisiana has shown only a
moderate gain, while New Mexico and Oklahoma have registered small declines.
Eventually, therefore, another increase may occur in such
employment.
Contract Cons.rvction
The expansion in building activity in both the Southwest
and the Nation has supplied a new stimulant to construction
employment in 1955. During the first 8 months of this year,
southwestern construction employment increased by 11,500
workers, or 4.3 percent above the level in 1954. This increased level of construction employment is particularly significant, as it represents the first large year-to-year gain since
1950-51, when construction employment increased 16 percent. In fact, between 1951 and 1954, construction employment was either stable or declining. Consequently, the present
level of construction employment is still below that prevailing in 1951.
The 1954-55 growth in construction employment occurred
entirely within the States of Texas, New Mexico, and Arizona.
Construction employment declined in Louisiana and remained virtually stable in Oklahoma. The growth in Texas
and Arizona stemmed largely from residential building activity, while industrial and heavy engineering construction
played a major role in the New Mexico increase.
Mining
Transportation and Utilltle.
Employment in transportation and utility industries h as
not responded yet to the economic growth of 1955_ Although
this category accounts for 10 percent of total nonagricultural employment, it has shown practically no growth since
1950 except the temporary gain stimulated by the Korean
conflict, which was dissipated rapidly after the truce_ Between 1950 and 1955, employment in this category increased
only 1 percent, and between 1954 and 1955, average employment decreased by nearly 1.5 percent_
This lack of growth is attributable to a number of factors,
some connected with the changing defense situation and
others related to internal operating procedures. Certainly,
the decline in defense activities has bccn one of the major
causes of the decrease, but the drought in the Southwest also
has reduced agricultural demands for freight services. Moreover, the shift to diesel engines has reduced the need for
railroad employment, not only the number of crews required
but also the number of workers needed for maintenance and
repair. Demand for transport facilities has occasioned the
construction of alternative means, such as pipelines, which
require less manual labor for operations_ Moreover, nearly all
transportation and utility industries are so mechanized that
they can expand or contract their operations without significant changes in employment.
Nevertheless, it is not expected that the declining trend
of 1954-55 will be repeated in the coming years. It seems
probable that the long-run demands for transportation services will expand as the population grows, and the demands
for utility services already are exceeding available capacity.
Southwestern mmmg activity and mmmg employment
have increased in response to the upturn in economic activity
in 1955, but these gains have been less than those experienced
in earlier years. Mining employment, accounting for 6 percent of total nonagricultural employment, has shown strong
advances in nearly every year since 1950 as the demand for
oil, sulfur, and metals has continued to expand. The 1954-55
increase of 1.5 percent is much smaller than the defenseinspired gains of 1950-51 but is only slightly less than the
average gain of 2 percent in 1952 and 1953. The most important industries contributing to the increases in mining employment since 1950 have been those engaged in petroleum,
potash, copper, and sulfur mining; however, in 1954-55, the
copper strikes had a marked retarding effect upon average
mining employment. Future gains in this ca tegor y are likely
to average between 1 and 2 percent per year as exploration
becomes more difficult and more labor is required to find the
needed reserves of nearly all minerals. On the other hand,
mining technology is improving, and operations rapidly are
becoming mechanized.
The rates of growth in mining employment have varied
sharply among the five states, both during the longer and
shorter periods. The most rapid gains over the long run
have occurred in New Mexico, Louisiana, and Arizona. Mining employment in New Mexico has been stimulated not only
by increased potash mining but also by the discovery and
development of new oil reserves. In Louisiana, offshore drilling in the Tidelands has had an appreciable effect, and in
Arizona the opening of new copper mines has been largely
responsible for the sharp gain in mining employment. Mining employment in Oklahoma has shown the slowest rate of
growth of any southwcstern state over the past 5 years, and
(
iIIII
,.
~
,
MONTHLY BUSINESS REVIEW
an actual decline has occurred in the past year, largely in
response to a reduction in the number of drilling rigs ill
operation.
Finance, In surance, and Real E.tale
Although finance, insurance, and real·estate employment
accounts for only 4 percent of total nonagricultural employ.
ment, it has consistently been among the most rapidly grow.
ing categories of employment. In the first 8 months of 1955,
employment in these industries advanced 3.9 percent over
the average in 1954. This rate of growtll is substantially be·
low the 5.8·percent average annual rate since 1950, but
future gains probably will average nearer the 4.percent level.
The stinlUlus to finance employment from expanding savings
and loan and consumer finance companies is expected to
continue. However, the inlpetus from new insurance institu·
tions may have been dampened by the new Texas law.
I
Much of the recent gain stemmed from the same factors;
but, in addition, new suburban communities needed banking,
insurance, and real·estate facilities. Over the past 5 years,
the ease with which insurance companies could be started
in Texas and the passage of the driver responsibility law
tended to stimulate employment in the category.
Among the southwestern states, the largest absolute gain
in finance, insurance, and real·estate employment occurred
in Texas. Louisiana also showed a moderate gain, but New
Mexico, Oklahoma, and Arizona gained only slightly.
Manufacturing Employment
The economic growth in 1955 has been reflected in an
upturn in manufacturing employment in both the Southwest
and the Nation, although nonmanufacturing employment in
the Sonthwcst has responded mOTe rapidly than factory em·
ployment. In contrast, growth in manufacturing employment
in the Nation in 1955 has exceeded nonmanufacturing growth
by nearly one· third. The major reason for this difference is
INDEX OF MANUFACTURING EMPLOYMENT
149
the fact that the recession was concentrated in durable goods
manufacturing, which accounts for a much smaller part of
total manufacturing in the Southwest than in the Nation.
Consequently, the recession had a sharper effect upon the
number of manufacturing employees in the Nation than upon
the number in the Southwest.
Manufacturing employment during the first 8 months of
1955, averaging 712,400, accounted for 19 percent of non·
agricultural employment in the Southwest, compared with 34
percent in the Nation as a whole. During these months of
1955, manufacturing employment in the five states increased
13,400, or nearly 2 percent, over the same period of 1954.
The growth between 1954 and 1955 has not yet fully recov·
ered the 3.5·percent decline in average employment in the
previous year. Comparing the 1954·55 rate of gain with
that of the 1950·55 period, the recent growth has not meas·
ured up to the average 4-percent gain in the 5·year span.
Nevertheless, the increase this year probably is more truly
reflective of the gains which can be expected over the coming years as manufacturing growth develops at a more moderate rate. The stimulant of defense·induced manufacturing
gains is past, and, unless a stronger wave of industrialization
stemming from market industries develops, the future rate
of growth is more likely to be similar to that of 1954·55.
Among the several states of the Southwest, the largest aver·
age 1954·55 increases occurred in Texas, Oklahoma, and
Arizona. New Mexico showed only a moderate gain, and
Louisiana manufacturing employment declined slightly.
The most important segment of manufacturing employment
in the Southwest is the nondurable goods industries, which
account for 53 percent of total manufacturing employment,
compared with only 4,2 percent nationally. The average level
of nondurables manufacturing employment during the first
8 months of 1955 increased 1.7 percent over a year earlier;
a large part of the gain occurred in apparel employment,
which showed a 3·percent increase. The next largest increase
was in employment in the chemical and allied products in·
dustries, which averaged 1.4 percent above the first 8 months
SOURCES OF MANUFACTURING EMPLOYMENT
(1950-IOO)
"
(QU ARTERLY )
RCE HT
FI RST [ IGI'iT
PER C
'"
I 40
14
M O~THS ~ 19 ~5
SOUTH WEST
LUMBER , WOOD PRODU
CTS.
0
SOUTHWEST).. ~
I
12
1
0
1
0
0 17'
•
V-:7'" -
1
,./
•
I
•••
20
PRIMARY META L S, META L
PRODUC TS, A ND MACHI NE RY
TRANSPORTA T ION
EQU IPME NT
10
FOOD AND K I ND RED
PRODUCTS
I 00
APPAREL AND FIN ISHED
TEXTILE PRO DUCTS
CHEM I CALS AND
'0.
80
70
I '0
//t'-~>I ~~/- I
UN ITED STATES /
F URNITURE , AND F IX TURE S
AL U ED PRODUCTS
PET ROL EUM AN D
COAL PROD UCTS
80
1950
1951
SOURCES . Siolo . "'~IOlm,"1 ogl/IC lu.
u S . 8"'"d~" L"bM S'Olllllu.
1952
1953
1954
195!5
70
OTHER
40~~O
IO
P(RC.E NT
S()uRCES S ,e re .",plc, "'" M" 4""""
U S B~ ' . o ~gl Lobo, srohshn
10
ZO
)()
PERCENT
40
150
MONTHLY BUSINESS REVIEW
of 1954. A minor gain in food processing offset a similar
decline in petroleum refining employment.
AVERAGE WEEKLY HOURS IN MANUFACTURING
SOUTHWEST
Durable goods manufacturing, which is currently of less
importance in the Southwest than in the Nation, has been
the most dynamic manufacturing field in recent years. How·
ever, the industries which were most important in the 2.2percen t increase in average durable goods manufacturing
employment during the first 8 months of 1955 over the same
period of 1954 were not the same industries that were mainly
responsible for the nearly 50-percent increase from 1950 to
1955.
The most rapid rate of growth between 1954 and 1955
was reflected in the lumber, wood products, and furniture
industries, which showed only an insignificant rate of growth
over the longer period. Contributing a smaller number of
jobs over the past year have been the metal industries (primary metals, fabricated metals, and nonelectrical machinery),
which combine to account for almost one-sixth of manufacturing employment. Over the longer trend, the metals industries have been a dynamic force behind the growth in durable goods manufacturin g employment. Similarly, the transportation equipment industry, plagued with sharp changes in
military aircraft orders, has reduced its average employment
this year, although it gained substantially over the 5-year
period. This particular industry in the Southwest- at its
point of greatest concentration, the Dallas-Fort Worth areahas only held its own as increases in automobile assembly
employment have failed to compensate fully for reductions
in aircraft industry employment_ The only District state showing a manufacturing employment decrease between 1954 and
1955- Louisiana-experienced this loss almost entirely in
transportation equipment manufacturing. However, the overall southwestern decrease in transportation equipment jobs
would have been greater if it had not been for an expansion
in the aircraft industry near Tucson and the generally accelerated pace in the automotive field.
Conditions and Characteristics of Employment
HOURS PER WE
(OUAII'TERL'r)
URS I"ERWE[K
"'•
4
4
44
A
~- Ij' Q
,I
.
43
4
2~
4
43
.
~
_ ' - 42
4'
,
40
40
• '.50
3
"•
4
1951
1952
1953
..
,
4
19!5!S
3.
require workers with a fairly high degree of intelligence and
adaptability. In consequence, labor productivity has been
increasing rapidly. Although no statistical proof is available,
it would be logical to assume that southwestern industries,
particularly chemicals and petroleum, are achieving a higher
rate of employee productivity than those in the Nation as
a whole.
Thirdly, although a reserve of labor generally has been
available, southwestern laborers have been working fairly
long hours per week. For example, the average weekly hours
of manufacturing workers in the Southwest have not averaged
helow 41 hours in any quarter since 1950. In contrast, the
Nation's manufacturing workers have averaged less than
40 hours per week for three quarters during 1954 and only
slightly above 40 hours per week in the fourth quarter of
1954 and the first two quarters of 1955. In other words,
the manufacturing workers of the Southwest have been utilizcd more intensively, with the result that over-all employment growth may have been retarded.
Of perhaps equal interest to workers and to the economy
in general are the characteristics and conditions of employment. The southwestern labor force has matured within the
past 15 years, with a steady upgrading of skills as a result
of the establishment of large wartime industries and rapid
industrial progress since then. However, a reserve of unused
labor still is concentrated near urban centers but located in
rural and semirural areas. This reserve of labor provides a
pool from which the Southwest obtains its labor flexibility
during periods of full employment or extreme emergency.
The steady improvements in agricultural technology are
continuing to release farm labor, not only on a permanent
basis but also for temporary nonagricultural work.
Finally, partially as the result of this relatively high workweek and partly beca use of the strong demand for skilled
labor, average weekly earnings of manufacturing employees
in the Southwest have risen quite rapidly. Of course, a large
portion of the gain has been the result of wage increases,
stemming partially from increases in the cost of living. However, average weekly earnings are substan tially above those
of 1950; at 73.45 in the second quarter of 1955, they were
$2 per week above those in the second quarter of 1954.
Average weekly earnings gained more rapidly in the District
states than in the Nation from 1950 through 1955, although
the current level of average weekly earnings for the Nation's
man ufacturing workers is slightly higher than the average
for manufacturing workers in the Southwest.
A second major feature of the labor force is a result of
the type of industry developed in this region . In general,
tha maj or increases in manufacturing industries have occurred in those industTies wherein a large investment per
worker is required. This type of industry usually needs
skilled or semiskilled employees, as the majority of jobs
Ou~ook
The outlook for nonagricultural employment in the District states is conditioned by the future direction of a number
of economic trends. A continued growtll in population and
4
MONTHLY BUSINESS REVIEW
further concentration near the existing centers of trade and
industry are expected to exert a strong force toward increases
in service, finance, trade, and government employment.
The recent pattern of industrialization centering upon industries with a high ratio of investment per worker probably
will be modified as market-oriented industries are attracted
to this area. However, improved technology and higher labor
productivity are expected in nearly all industries, with a consequent lessening in the rate of growth in demand for unskilled labor and a developing premium for skilled workers.
Improved technology also will require additional training
and retraining for effective utilization of the available labor
force. Nevertheless, in view of the raw material and climatic
attractions to industry, further growth is expected in such
industries as chemicals, petroleum, and metal refining.
Another major factor affecting future industrial employment prospects is the development of corollary process firms,
which are attracted by the presence of other manufacturers.
For example, new steel and metal-fabricating industries are
being attracted by the oil industry, as well as by other industries. Further gains in durable goods industries, marking a
continuation of recent trends, are expected to induce a greater
cyclical liability but also will improve the balance of manufacturing facilities, thus reducing the dependence of the area
upon an individual industry.
In summary, total nonagricultural employment in the
Southwest is expected to increase at an annual rate of nearly
2 percent, and manufacturing employment should gain at
a rate of approximately 3 percent per year. In other words,
the outlook is very promising, with some growth expected
in every major category of employment.
ELEVENTH FEDERAL RESERVE DISTRICT
c:zm OCl llo. Hue! Olfin
IIIUII HOIJ,Ion
T,,,itorr
Branch Terrilor),
1.:.:.:.:.:1 San Anl0nlo BrGlleh Territory
~ Ef Po . o Branch Territory
151
152
MONTHLY BUSINESS REVIEW
REVIEW OF BUSINESS, AGRICULTURAL, AND FINANCIAL CONDITIONS
Department store sales in the
Eleventh Federal Reserve District in September declined 2
percent below August sales but
were 7 percent more than in
September 1954. Sales of homefurnishings continued strong, while the soft goods departments showed
slight sales increases from a year earlier. Inventories
were 8 percent higher than in August 1955 or September 1954. Sales at District furniture stores during
September were 10 percent below those of August
but were 15 percent above the year-earlier level.
The total dollar volume of Dis·
trict department store sales during
September declined 2 percent from
August, primarily because of one
less business day, but was 7 percent
above that in the comparable month of 1954. Weekly reo
ports indicate that sales during the fir~t half of October
exceeded the year·earlier total by approxImately 11 percent.
Normally, the level of consumer buying at department
stores in this District, as measured by daily average sales,
rises approximately 7 percent from August to September.
This year the rise--2 percent-was less than ~easonal, but
daily average sales during September estabhshed a new
high. Reflecting the less than seasonal gain, the adjusted
index of sales declined from 139 in August to 131 in Sep·
tember, compared with 122 for September 1954.
The indicated production of cotton in the District
states, as of October 1, is 5,865,000 bales, or 3
percent below production last year. Estimates of the
corn, grain sorghum, peanut, and rice crops are
higher than the month-earlier forecasts. Ranges in
the District states are in the best condition for this
time of the year in several seasons.
During the first three quarters of 1955, District depart.
ment store sales were 10 percent above sales in the first 9
months of 1954 and were 8 percent above the previous high
for the January·September period, which was in 1953.
Daily average crude oil production in the District
rose moderately in October, following small increases
in the preceding 2 months. A further rise in production is indicated for November in view of the higher
oil allowables announced by the Texas Railroad
Commission. On the other hand, District refinery
crude runs declined noticeably during the first half
of October to extend the decrease which began in
September.
Sales in the individual soft goods departments in Septem.
ber generally showed slight increases from a year earlier, but
sales in consumer durable goods departments continued to
experience marked gains from last year. Sales of women's
and misses' ready·to·wear accessories and apparel were 2
percent higher than in September 1954, while sales of men's
and boys' wear were 1 percent lower. In the small wares
departments, sales were at the same level as a year ago. Of
selected soft goods departments, only piece goods and house·
hold textiles experienced a marked change from a year earlier,
Nonagricultural employment in the District states
during September rose sharply to 3,924,700, or
17,400 over August. The primary stimulant was an
increase in employment by educational institutions
and retail trade establishments. Manufacturing employment rose moderately to 733,200.
The value of construction contracts awarded in the
District during September was 7 percent more than
in August. Residential awards increased 6 percent,
while all other awards were up 8 percent. Compared
with a year ago, total awards were down 10 percent
during September.
Gross loans of the District's weekly reporting member banks rose 1 .5 percent during the 4 weeks ended
October 19 . Total investments increased 2 .1 percent,
primarily reRecting the added holdings of Treasury
certificates following the new Treasury financing.
Total deposits increased nearly 1 percent.
RETAIL TRADE STATISTICS
(Percentage change)
STOCKS'
NET SALES
Sept. 1955 from
line of trade
by Clrea
DEPARTMENT STORES
Tolal Beventh District ••••.• . •••••
Corpus Christi •.••.••• . • •.•.•.•••
Dallas •• ••••• ••.••••.•• .• •.•••.
8 Poso •..••••••••• .. ••••••• •••
Fort Worth ••••••••• . ••• • •••• •. •
Houston •••••• •.•••..•••••••• ••
San Antonio .•••. .. •••.••••••••.
Shreveport, la . •••••••••••••• • ••
Waco ••• . •••••••••.••••••• •• ••
Other cities ••••••••.•••••••••• •
FURNITURE STORES
Total Eleventh District ••••••••••••
Amarillo ••••••••••• ••••• •••••• •
Austin ••••• • •• •• •••••••••••••••
Dallas •••••••• •••••••• •••••••••
Houston •••••••••• •••••••••••••
lubbock ••.•••••• •••••• • •••••••
Port Arthur •••••••••••••.•••••••
Son Antonio ••.•••••••••••••••••
Shreveport, la .•••••••••••••••••
Wichita Falls •••••••.• . •••••••••
Other cities ••••••••.•••••••••••
HOUSEHOLD APPLIANCE STORES
Total Eleventh District ••••••••••.•
Dallas ........................ .
I Stocks 01 end of month.
Sept.
1954
7
-2
9
7
9
7
2
2
18
12
15
9
12
27
12
23
9
4
15
25
15
-5
-5
Aug.
1955
-2
-8
3
2
_6
0
_11
0
0
-5
Sept. 1955 from
9 mo. 1955
camp. with
9 mo. 1954
10
9
11
10
10
8
8
6
14
13
18
-10
-14
-23
-11
-7
15
19
27
-20
-9
8
12
17
II
-7
11
-4
-4
-3
8
Sept.
1954
Aug.
1955
8
8
23
8
25
12
4
9
6
4
_2
6
9
7
8
11
4
I
7
2
5
14
9
-1
16
19
-3
-I
-9
3
7
3
4
5
4
8
12
8
4
2
4
153
MONTHLY BUSINESS REVIEW
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
11947-49
=
100r
UNADJUSTED
Sept.
Area
Aug.
ADJUSTED'
July
1955
Sapt.
1954
Sept.
Aug.
1955
1955 1955 1954
129
123
144
123
117
139
122
120
140
131
125
147
139
139
153
145
141
158
122
115
137
155p 144
136
142
146p 145
143
134
1955 1955
J..ly
Sept.
SALES- Doily overage
Eleventh District .•• • . .. •. .. •
Dallas .•••.....•......... .
Houston .•••.••••..•••.•••
131
131
149
STOCKS-End of month
Eleventh District ••. •••••••••
Adjusted for $oosonol variation.
p-PreJiminory.
I
with sales up 11 percent. Year-to-year increases in sales of
homefurnishings ranged from 7 percent for domestic floor
coverings to 25 percent for major household appliances.
Charge accounts receivable at department stores followed
the usual pattern during September, rising 7 percent above
August; the end-of-month total was 5 percent above the
volume outstanding on the same date last year. Instalment
accounts showed virtually no change from August but were
16 percent above a year earlier.
Collections on charge accounts during September were
45 percent of the amount outstanding at the beginning of
the month, indicating an average pay·out period of approximately 67 days. Collections on instalment accounts amounted
to 12 percent of outstandings at the beginning of September,
reflecting an average collection time of abont 16 months.
These ratios show no significant change from a month ago
or a year ago.
The dollar value of inventories of reporting department
stores in the District increased further by 8 percent from
August to September and at the end of the month was 8
percent greater than in September last year. The adjusted
index of department store stocks, which makes allowances
for usual seasonal variations, rose from 145 percent of the
1947-49 average in August to 146 percent in September.
Orders outstanding, which had increased substantially in
June and July, decreased in August but rose in September;
at the end of the month, they were 24 percent higher than
a year earlier.
Rains fell over the major portion
of the District during the last week
in September and the first part of
October, with the heavier amounts
occurring in southeastern New Mexico, northwestern sections of Texas and Oklahoma, and the
southern and coastal areas of Texas. Light to heavy rains
in the High Plains provided needed moisture for planting
additional acreages to wheat. Wheat fields which were
planted prior to the September rains are up to a uniform
stand and are making good growth. Precipitation checked
deterioration of dry-land cotton in most of the High Plains
area but lowered the grade of open cotton in irrigated sections in much of the western portion of the District. Cool
weather during the middle of October retarded development
of late cotton and feed crops.
Harvesting of feed crops rapidly is drawing to a close in
most of the later areas, and seeding of winter legumes and
other small grains is virtually complete in many sections of
the District. Showers during the past month have delayed
development of commercial vegetables in south Texas, and
plantings of additional acreages have been delayed as a
result of wet fields.
Cotton harvesting is practically complete in south·central
and upper coastal counties of Texas, while activity is reaching a peak in the High Plains, southern valleys of New
Mexico and Ari2ona, and District 6 of Texas. Cotton gin.
nings in the District states prior to October 1 totaled 1,901,109 bales, or 15 percent less than in the corresponding period
last year.
In the Nation the cotton crop is forecast, as of October 1,
at 13,928,000 bales, or 8 percent above the month·earlier
estimate and 2 percent greater than last year's production,
according to the United States Department of Agriculture.
The indicated yield per acre is a record 405 pounds, which
is 64 pounds above the previous record set in 1954 and is
126 pounds greater than the 10-year (1944-53) average.
The indicated production of cotton in the District states
is placed at 5,865,000 bales, or 5 percent higher than on
CROP PRODUCTION
New car registrations in three of the larger metropolitan
centers of the District declined from August to September;
registration s were down 5 percent in Dallas, 8 percent in
Fort Worth, and 15 percent in San Antonio. However, registrations in Houston showed a month. to-month increase of 2
percent. Registrations in the four cities ranged from 28 to
70 percent higher than a year ago.
Furniture store sales in this District, after an almost
steady increase since the first of the year, declined notice.
ably in September. Sales were down 10 percent from Augnst
but were 15 percent above the year-earlier level. Following
three successive monthly declines, stocks rose 5 percent from
the end of August and were also 5 percent higher than a
year ago.
Texas and Five Southwestern States
(In thousands of bushels)
TEXAS
E! timated
Crop
Cotton 2 ••• •• ••• •
Corn •••••••••• •
Wheat. ........
Oats • . . . ...... .
Barley, ....•. . .
Rice' ••....•.•• •
Sorghum grain •.•
Flaxs eed ..... ..
HCly 4 • • • • • • • • • • •
Peonvts 5.. . .... .
Irish pototoes ....
Sweet potatoes ..
Oct. 1. 1955
4,000
50,196
14.212
34.615
2.208
14,036
138,424
78
1,810
237.250
2,772
2,600
FIVE SOUTHWESTERN STAlESt
AYerage
195.(
3,9.40
33,184
30.894
41,354
3.135
16.120
117.386
578
1.389
108.185
2,033
1,350
19.4.4·53 Oet. 1, 1955
879
5,865
77.879
44,744
57,324
17.776
26,564
164,765
186
1,570
5,391
272.522
3,479
3,664
341.375
5,610
12,715
3,388
417,111
55,404
28.167
2.481
10,918
77,502
Average
Estimated
1 Ari:zono, Louisiana, Ne w Mexico, Oklahoma. and Texas.
2 In thousand s of boles.
I In thousands of bag$ containing 100 pounds each.
, 10 thousand s of ton s.
a In thousands of pounds.
SOURCE: United States Deportment of Agriculture.
1954
194.4·53
6.Q32
52.047
84.584
102,895
138,465
65,737
21,966
47,500
9,964
21,886
93,103
1,300
4,807
390.998
7,580
13,379
31,116
130,950
676
4,476
153,325
4,815
10,374-
5,067
MONTHLY BUSINESS REVIEW
154
LIVESTOCK RECEIPTS
(Number)
SAN ANTONIO MARKET
FORT WORTH MARKET
Sept.
Clou
Se pt.
Aug.
Se pt.
Sept.
Aug.
1955
1954
1955
1955
1954
1955
68,832
79,7 10
24 ,3 84
3 5,615
26.263
18,227
40 ,006
3 9,50 6
2,597
'34,017
30,130
4,573
'25.782
Ca lves . . .. • . .. .
21 ,417
10 4,5 62
36,33 8
Hogs• . •... . ... .
Sheep . •• . .•. •. .
.41,840
58,993
36,180
72,536
Cottle • •. • . . . . . .
3,873
'2 6,720
55,73 5
37,851
1 Includes goats.
pared with a 1955 marketing quota of 30,000 bales and an
aC eage allotment of 46,154 acres. On December 13 a referl"
endum will be held, in which two·thirds of the growers voting
must approve the marketing quotas for both upland and
extra-long staple cotton if such quotas are to become
effective.
CROP REPORTING
DISTRICTS OF TEXAS
September 1 but 3 percent below the 1954 crop. The indicated production in each of the District states is higher than
the month·earlier estimate.
In Texas the prospective cotton crop is placed at 4,000,000
bales, reflecting an increase of 150,000 bales from a month
ago. A crop of this size would be 2 percent above that in
1954 and 18 percent larger than the 1944·53 average. Approximately half of the increase in prospective production
from a month earlier occurred in northwestern Texas; about
one· third, in the Blacklands; and the remainder, in eastern,
south-central, and upper coastal counties. The yield per acre
in Texas is indicated at 289 pounds, or 44 pounds more
than in 1954 and 101 pounds above the lO-year average_
On October 14 the Secretary of Agriculture proclaimed a
national marketing quota of 10,000,000 bales and a national
acreage allotment of 17,391,304 acres for the 1956 crop of
upland cotton. The upland cotton acreage allotment for 1956
is 4 percent below the 18,113,208 acres allotted for the 1955
crop. The marketing quota for extra-long staple cotton is
35,300 bales and the acreage allotment is 45,305 acres, com-
Production prospects for grain sorghums and corn in
the District showed further improvement during September.
The corn crop is estimated, as of October 1, at 77,879,000
bushels, or 50 percent larger than in 1954. Grain sorghum
production is indicated at 164,765,000 bushels, which is 26
percent greater than last year's crop and 77 percent more
than the 10-year average. Improved grain sorghum prospects
in northwestern Texas more than offset the decline in indio
cated production in Oklahoma, New Mexico, and Arizona,
while all of the increase in expected corn production is the
result of higher estimates for the Oklahoma crop.
In Oklahoma and Texas, peanut yields are higher than
those anticipated earlier; and production in the District is
indicated, as of October 1, at 341,375,000 pounds, or 7 per·
cent more than the month·earlier estimate and 123 percent
larger than last year's small crop. The prospective output of
rice in Texas and Louisiana is placed at 26,564,000 bags, or
3 percent more than the September 1 estimate and only 15
percent below production in 1954.
In Texas, total citrus production in the 1955-56 season is
forecast at 4,000,000 boxes. The grapefruit crop is indicated
at 2,200,000 boxes, or 12 percent less than that in the preceding season, and the orange crop is placed at 1,800,000 boxes,
which reflects an increase of 20 percent from the 1,500,000
boxes harvested last year.
COTTON PRODUCTION
Ranges in the District states as of October 1 were in the
best condition for that date in several years, according to
Texas Crop Reporting Districls
[In thousands of boles-500 lb. grosl wI.)
Crop reporting district
1955
Indicated
Odober 1
l·N ••••• ••• • •••• •••. • . • .• ••
1·5 • • • •• • ••. •• • . • . • • • • .. •••
2·N • • • •• •• •. •.•• •.•• • •• . •• •
400
1.075
245
2·5 •• •• • • ••••••• ••• •• •• •• ••
3 •••• • •• •• • ••• • • • • •• • ••••••
4 •••••••••••••••••••• • • •• • •
5·N ••• •• . • •••. •• • •• . • •••.••
225
25
6 •••••••••••••••••••• • ••• • •
630
130
90
260
B·N • ••••• • •••• • ••••• •• •••.•
30
160
5·5 •• • ••• • •••••• • .•.•• • • •••
7 ••• • . .. .. ...• • ... . .. . .. • . .
8·5 ••. • •••.•• • •••••••••••.•
9 •••••••• • ••• • .• • ••• •• • ••• •
10·N • • ••.• •• •. • .•• • ••••• • •
70
235
1955
1953
1954
512
1.Q98
548
835
78
98
180
20
448
75
74
261
285
39
1, 10 1
13 6
119
125
125
141
142
39
215
76
221
25
218
10·5 •••••. • •.•..•• • •• • ••• • •
390
192
67
407
State......... . . .. .....
....000
3.940
35
FARM COMMODITY PRICES
a s perce nt of
1954
SOURCE. United Slates Deportment of Agriculture.
143
253
238
32
258
4,317
Top Prices Paid in local Southwest Markets
111
173
122
100
120
113
32
122
52
96
102
Commodity gnd market
COnON, Middl ing 15 / 16-inch, DaUas •• ..
WHEAT. No. 1 hdrd, Fort Wort" •••.• . . ..
OATS, No. 2 white, fort Worth ... . ..... .
CORN, No. 2 yellow, Fort Worth ...•. • •.•
SORGHU M S, No.2 yellow, fort Worth •• .•
HOGS, Choice, Fori Worth •• .•• • •• . •. ...
SLAUGHTER STEERS, Choice, Fort Worth •••
SLAUGHTER CALVES, Choice, Fort Worth ••
STOCKER STEERS, Choke, fort Worth • . • ••
SLAUGHTER SPRING LAMBS, Choice,
Fort Worth .• • •.. • •. • .• • .•.•..••.•.•
BROILERS, south Texas ••••.•.••••• • • • • • •
Comparable Comparable
Week ended
week
week
Unit Oc:t. 20, 1955 last month
lalf year
lb.
bu.
bu.
bu.
cwl.
cwl.
owl.
S
.3270
2.41Y..
$
.3195
2.43
.85
1.53
.83
1.55
2.05
2.05
15.50
17.50
23.50
cwt.
(wt.
23.00
20.00
21 .00
owl.
lb.
19.50
.25
.3400
2.65
1.00Vl
20.00
1.96Y..
2.62
19.75
25.00
21.00
21.00
18.S0
.26
19.50
.24
18.50
155
MONTHLY BUSINESS REVIEW
the Department of Agriculture. In the High Plains, rains
increased prospects for winter grazing on wheat fields, and
small grains in the eastern part of the District are developing
rapidly. Livestock generally are in good condition, and many
ranchers are del aying fall marketing to take advantage of
the improved feed supply.
In the 4 weeks ended October 19,
the weekI y reporting member banks
in the District showed an increase
of $34,359,000 in their gross loans
and discounts, a somewhat smaller
increase than during the corresponding weeks last year.
Even though brokers' loans and real-estate credits declined,
other loans for purchasing securities, loans to banks, "all
other" loans, and cOlwnercial, industrial, and agricultural
loans increased. Last year, all of the loan accounts showed
gains except loans to banks, which decreased slightly.
The weekly reporting member banks added $30,007,000
to their total investments during the 4 weeks. The most
substantial increase, $57,947,000, was registered in holdings
CONDITION STATISTICS OF WEEKLY REPORTING
MEMBER BANKS IN LEADING CITIES
Eleventh Federel Reserve District
CONDITION STATISTICS OF All MEMBER BANKS
Eleventh Federal Reserve District
(In millions of dollars)
Sept. 28,
1955
Item
ASSETS
Loans and discounts .•....... . ... ..............
United States Government obligations ........... .
Other securities ...................•.•.... ....
Reserves with Federal Reserve Banll .... .... . • ....
Cosh in 'l'a ulte ....... .................. . • . ...
8alances with banks in the United States ..... ... . .
Balances with bonks in foreign countries e ...... .. .
Cash items in process of collection . ............. .
Other ossehe .. . ... . ... . ...... .... .......... .
Sept. 29,
1954
Aug. 31,
1955
$3,711
$3,100
2,600
492
961
125
1,102
2
329
158
$3,643
2,375
565
938
137
912
2
349
182
2,337
575
945
159
959
2
357
186
TOTAL ASSETSe .. ........•. ...... .•.......
9,231
8,869
9,103
L1A81L1TIES AND CAPITAL
Demond deposits of banks . .... , ......... .•... .
Other demand deposits ..•........•.•..........
Time deposits .. ..........................• • ..
981
6,186
1,292
1,148
5.957
1,089
943
6,129
1,277
Total deposits .......... , .. . ...... • . .......
Borrowings e , .................... .• ...... ... .
Other liabilities e .. . . ................• . .......
Total capitol Qccounts e •...... , .... .. .•.... ....
8,459
34
71
667
8,194
1
67
607
8,349
25
66
663
TOTAL LIABiliTIES AND CAPITAle .•..... .....
9,231
8,869
9,103
e-Estlmoted.
of Treasury certificates, reflecting the new issue during the
period; holdings of United States Government bonds rose
$2,094,000. The banks' portfolio of Treasury bills, Treasury
notes, and other securities declined. During the corresponding period of 1954, the weekly reporting member banks
added $88,135,000 to their investment accounts.
{In thousands of dollars}
Item
Oct. 19,
1955
Oct. 20,
1954
Sept. 21 ,
1955
ASSETS
Commercial, industrial, and agricultural loans • ..
loans to brokers and dealers In securities .. .. . .
Other loans for purchasing or corrying securities.
Real·estate loons ......... . ........ . ... . . . .
loons to banks ...................... . .... .
51,513,515 51,282,760 $1,496,323
16.590
14,789
20,08 1
118,763
94,774
117,850
205,166
155,361
209,528
13,035
9,134
404,695
8,635
508,832
25,226
1,961,513
17,965
2,361 ,249
25, 201
All other loons . . • .. •.• ••.••••••• .•.•. •••••
528.539
Gross loans . ............ . ............. .
leu reserves and unallocated chorge ~offs ••
2,395,608
Net loans.... ...... . ... ......... . .... ..
2,370,382
1,943,548
2,336,048
U. S. Treasury bills ... ...... .. . .. ...... .... .
U. S. Treasury certificates of indebtedness . .... .
U. S. Tre<::ISury notes ... ...... .... .......... .
U. S. Govemment bonds (inc. gld. obligations) ..
Other securities ..... . .... .. .............. .
39,318
74,143
258,271
834,909
248,547
160,101
151,461
287,250
879,014
227,025
48,845
Total in'l'estments .. ... ... .. ..... ........ .
Cosh items in process of collection ..... ...... .
Balances with bonks in the United States ... ... .
Balances with banks in foreign countries .... .. .
Currency and coin . ....................... .
Reser'l'es with Federal Reserve Bank ....... ... .
Other asseh ..... .. ........ .............. .
1,455,188
379,441
425,810
1,771
47,853
596,255
139,886
1.704.851
332,192
541,351
45,277
616,227
115,641
1,425,181
388,109
453,350
2,240
47,927
587,650
13 2,154
Between September 21 and October 19, the weekly reporting banks showed an increase of $45,590,000 in their total
deposit liabilities. A gain of $56,664,000 in United States
Government balances more than offset declines in most
other categories, so that total demand deposits increased
$48,140,000_ Time deposits declined $2,550,000, a decrease
of $3,222,000 in local government balances beiug the most
substantial decline.
1,657
16.196
272,312
832,815
255.013
TOTAL ASSETS •••.••.••.••. • .•. ••••••
5,416.586
5.300,744
5.372,659
LIABILITIES AND CAPITAL
Demond deposits
Indi'l'iduals, partnerships, and corporations .. . .
United States Government . .. . ...... . .. . . .
Stales and political subdi'l'isions . .......... .
Banks in the United States .... . . ... ....... .
Sanks in foreign countries .... . . .......... .
Certified and offlcers' checks, etc.......... .
2,837,590
131,640
180,170
861,131
18,011
66,041
2,731,362
136,730
156,975
1,012,704
14,717
73,194
2,837,931
74,976
Total demand deposits .•...... •. .......
4,094,583
4,125,682
As of October 19, bills payable and rediscounts totaled
$40,200,000, reflecting a decrease of $8,300,000 since September 21. At the same time last year, borrowed funds
totaled $30,000,000.
Reporting banks in 24 cities in the District showed an
aggregate 2-percent decline in debits to deposit accounts
from August to September but a 14-percent increase from
September 1954_ Approximately the same number of cities
reported increases as reported decreases_ Lubbock showed
the largest monthly increase, 9 percent; and Corpus Christi,
4,046,443
Time deposi ts
Individuals, partnenhips, and corporations ....
United States Government ...•.. . .........
Posla l savings ...... ... ........... .. . .. .
States and political subdivisions .. .. . ...... .
Bonks in the U. S. and foreign countries .... . .
Total time deposits ................... .
698,465
11,874
606,376
189,628
867,372
18,562
57,974
GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
Elevenlh Federal Reserve Districl
(Average, of daily flgures. In thousands of dollars)
697,898
12, 159
452
13.369
452
118,431
2,025
105,475
1,278
121,653
1,635
831.247
726.950
833,797
452
Totol deposits ... . .. . ......... .. ... .
Bills pa yable, redisco unts, etc ... . ... . . . ... . . .
All other liabilities . ... . ................... .
Total capitol occounls .. . .... ... . .. ... ... .. .
4.925,830
40,200
61,910
388,646
4,852,632
30,000
63,422
354,690
4,880,240
48,500
58,536
385,383
TOTAL LIABIlITIES AND CAPITAL .... . ,..
5.416.586
5,300,744
5,372,659
COMBINED TOTAL
Dote
Grass
demand
TIme
RESERVE CITY SANKS
Gross
demand
Time
COUNTRY SANKS
Gran
demand
Time
Sept. 1953 .... $6,647,956 $ 912,860 13.236,056 $501,477 $3,411,900 $411,383
Sept. 1954 ....
7,086.193 1.081,B50 3,499.932 600,926 3,586,261 480,924
May 1955 . ...
7.241,268 1,226,177 3,541 ,867 704,826 3,699,401 521,351
7,190,550 1.223,862 3,5 18,648 704,471 3,671.902 519,391
June 1955 ....
July 1955 ....
7.218.169 1,273,423 3.545,239 753,896 3,672,930 519,527
Aug. 1955 . ...
7,144,992 1,276,939 3,480,158 755,284 3,664,834 521.655
Sept. 1955 ....
7,195,579 1.271.089 3,517,182 748,666 3,678,397 522,423
MONTHLY BUSINESS REVIEW
156
BANK DEBITS, END·Of·MONTH DEPOSITS
AND ANNUAL RATE OF TURNOVER OF DEPOSITS
NEW MEMBER BANKS
(Amounts in thouUlnds of dollou)
DEBITS'
DEPOSITS'
Percentage
chanQe from
September
1955
Area
S e pt.
Aug.
Annual rot e of turnover
Sept. 30,
1954 1955
1955
Sept.
1955
Se pt.
1954
Aug.
1955
ARIZONA
Tucson ••••••••••••••
131,479
23
-2
95,256
16.7
14.9
17.2
59,532
241,277
14
22
7
16.4
15.6
15.1
-2
45,438
187,434
13.4
16.3
16.1
26,610
4
-2
25,677
12.2
10.9
12.4
18
21
12
1
12
-1
-1 -11
9
6
16
-3
19
3
13
-3
4
-2
12
-3
14
-1
22
9
16
-3
3
7
13
-3
9
8
17
1
1
2
18
4
13.7
106,404
17.6
118,528
97,416
107,707
22,219
1,012,046
129,670
356,771
70,433
1,206,303
19,459
87,603
45,555
45,366
346,968
17,749
56,448
67,850
103,032
14 .3
12.7
15.0
13.8
14.4
15.2
LOUISIANA
MonrOe •••••....... •
Shreveport •• ••••.•••
NEW MEXICO
Roswell •••••••••••• •
TEXAS
Abilene ...... . ..... .
Amarillo .......•... .
Austin .............•
Beaumont •••• •• •••• •
Corpus Christi ...•...•
Corsicana .......... .
Dallas ............. .
EJ Paso .......... . ..
Fort Worth ..........
Golveston ........ . . .
Houston ............
laredo ........... . .
lubbocK ............
Port Arthur ..........
San Angelo .........
San Antonio . . .......
Texarkana' •. ...... .
Tyler .............. .
Waco ..............
Wichita Falls •.. . . •.•
67,068
157,850
139,048
124,766
156,651
17,481
1,956,668
221,548
594,181
80,508
1,973,058
19,623
126,560
53,713
44,502
465,250
18,665
72,205
88,100
97,779
Total-24 cities ........ $6,934,122
°
°
14
-2
58,793
15.4
17.4
9.5
23.6
20.5
19.9
13.7
19.7
12.2
16.8
14.0
11.6
16.2
12.6
15.4
15.7
11.3
$4,430,125 ....- 1 8.S
9.4
21.7
18.2
18.6
13.9
18.7
11.6
15.5
14.0
10.7
15.6
11.6
13.6
16.0
9.8
17.5
13.7
17.5
14.2
15.4
19.3
8.9
25.0
19.8
20.4
14.0
20.5
12.2
15.1
14.6
11.3
17.2
11.9
15.1
15.8
10.9
19 .6
I Debits to demand deposit accounts of individuals, partnerships, and corporations gnd
of states and political subdivisions.
I Demand deposit accounts of individuals, partnerships, and corporations and of stgtes
and political subdivisions.
I These figures include only one bank in Texarkana. Texas. Total debits for all banks in
Texarkana. Texas-Arkansas, Including two bgnks located in the Eighth District, amounted to
$39,422,000 for tile month of September 1955 .
with a month·to·month decline of 11 percent, recorded the
most substantial decrease. The annual rate of turnover of
deposits in the 24 cities also declined during September,
from 19.6 in August to 18.8; a year earlier, the rate of
turnover was 17.5.
During September, gross demand deposits of all member
banks in the District averaged $7,195,579,000, reflecting in·
creases of $50,587,000 from August and $109,386,000 from
September 1954. Gross demand deposits at reserve city banks
rose $37,024,000, while those at country banks rose $13,·
563,000. Time deposits in the District were $5,850,000 below
their August level, with the decline at reserve city banks
more than offsetting the slight increase recorded at country
banks, and were $189,239,000 larger than during September
last year.
During the 4 weeks ended October 19, total earning assets
of the Federal Reserve Bank of Dallas increased $4,488,000
to $1,003,056,000. A $16,441,000 addition to holdings of
CONDITION OF THE FEDERAL RESERVE BANK OF DAllAS
(In thousands of dollars'
Item
October 19,
1955
Total gold certificate res erves ..•......•..... $ 729,022
Discounts for member banks . . . ..... .. .... . .
41,155
Other discounb and advances .. . .... .•.....
627
U. S. Government securities ... ............. .
961,274
Total earning assets ........•..............
1,003,056
Member bank reserve deposits ..... ........ .
991,626
Federal Reserve notes in actual circulation .... .
718,014
October 20,
1954
Sept. 21,
1955
$816,506
318
8,695
960,988
970,001
976,591
733,156
$743,488
52,482
1,253
944,833
998,568
981,492
717,115
The First National Bank of Bovina, Bovina, Texas, a
newly organized institution located in the territory
served by the Head Office of the Federal Reserve Bank
of Dallas, opened for business October 29, 1955, as a
member of the Federal Reserve System. The new bank
has capital of $50,000, surplus of $50,000, and un·
divided profits of $25,000, The officers are: I, P.
Macon, Chairman of the Board; C. R. Elliott, Presi.
dent; R. A. Iefferies, Vice President; Ioe B. Temple,
Vice President; and Warren Embree, Vice President
and Cashier.
The Citizens National Bank of Gonzales, Gonzales,
Texas, located in the territory served by the San An·
tonio Branch of the Federal Reserve Bank of Dallas,
opened for business October 31, 1955, as a conversion
of the Gonzales State Bank, Gonzales, Texas, which was
a member of the Federal Reserve System. The bank has
capital of $14(),000, surplus of $185,000, and undivided
profits and reserves of $71,700. The officers are: M. P.
Rochelle, Chairman of the Board; V. S, Marett, Presi·
dent; Horace Wood, First Vice President; F. D. Koker·
not, Vice President; George V. Holmes, Vice President
and Agriculturist; Herman H. Braley, Cashier; P. L.
Crockett, First Assistant Cashier; and Mrs. Marcella
Burchard, Assistant Cashier.
NEW PAR BANKS
The Southwest Bank and Trust Company, Irving,
Texas, a nonmember bank located in the territory
served by the Head Office of the Federal Reserve Bank
of Dallas, was added to the Par List on its opening
da.te, October 13,1955, The officers are: C. B. Hardee,
Chairman of the Board; Carr P. Collins, Ir. , President;
Hans Mueller, Executive Vice President; and E. B.
Wilkins , Cashier.
The Main Bank and Trust, San Antonio, Texas, an
insured, nonmember bank located in the territory
served by the San Antonio Branch of the Federal Re·
serve Bank of Dallas, was added to the Par List on its
opening date, October 17, 1955. The officers are: lack
G, Lawrence, President; Charles B. Cooney, Vice Presi·
dent; and I. A. Potts, Cashier.
Government secuntles more than offset declines of $11,.
327,000 in member bank discounts and $626,000 in other
discounts and advances. By contrast, a year earlier, total
earning assets were $970,001,000, including member bank
discounts of $318,000, other discounts and advances of
$8,695,000, and United States Government obligations of
$960,988,000. Total gold certificate reserves were reduced
$14,446,000 in the 4-week period and were $87,484,000 be·
low the level on October 20, 1954. Federal Reserve notes
in actual circulation on October 19 totaled $718,014,000,
4
~
r
MONTHLY BUSINESS REVIEW
157
CHANGES IN FACTORS AFFECTING MEMBER BANK RESERVE BALANCES
CRUDE 01[, DAILY AVERAGE PRODUCTION
Eleventh federal Reserve District
(In thousands af barrels)
(In thousands of dolton;)
Change from
Sept.
1955 1
lS9!~'2
August
195!i1
3,088.5
2;745.7
572.6
1,073.9
206.9
2,914.5
2,606.9
552.9
1,011.2
212.6
86.1
744.1
3,077.1
2;734.2
574.7
1,081.9
202.6
89.9
785.1
226.3
116.5
3,589.1
6,666.2
CHANGE'
Area
.4 weeks ended
Oct. 19, 1955
Dec. 29, 1954Cd. 19, 1955
-$ 2,998
- 47,138
+ 65,247
4,986
+$ 25,595
- 376,297
+ 309, 473
fACTORS
Federa l Reserve credit-local ........ .. .... . .. ,.
Interdistrict commercial and flnancial transactions . ••
Treasur y operations •••.•.. •.•••• .•. •..•.• .. •.•
Currency transactions ••• •... •....•• . •.• ..•.•.. •
Other depositl at Federal Reserve Bank ..... . ... .
Other Federal Reserve accounh ..... ...... .... . .
RESERVE BALANCES
October 19, 1955.. . .. ...... ....
September 21, 19$5. . ...... ....
I
+
+
6
3
+$10,134
$991,626
$981,492
+
+
16,153
566
10,757
-$ 14,885
Sign of change indicates effect on reserve balances,
which represents an increase of $899,000 over a month earlier
but a decrease of $15,142,000 compared with last year's
figure.
Member bank reserve balances rose $10,134,000 in the
4·week period ended October 19 and $15,035,000 over the
corresponding date last year. Treasury operations in the
District had an expansive effect of $65,247,000 on reserve
balances, which more than counteracted the $47,138,000
decline resulting from the interdistrict flow of funds. Cur·
rency transactions had the effect of reducing reserve bal·
ances by $4,986,000, and local Federal Reserve credit de·
clined $2,998,000. For the year through October 19, reserve
balances decreased $14,885,000.
The increase in short· term rates of interest evident through.
out the year has continued in recent weeks. Representative
of this firmness, the prime rate (the price of direct bank loans
to the best credit risks) was increased on October 14 to 3ljz
percent, which is higher than at any time since 1933,
On Octoher 11 the Treasury issued approximately $2,900,000,000 of Tax Anticipation certificates bearing a 2%,percent coupon and maturing June 22, 1956. Subscribers
in this District received $127,980,000.
Demand for petroleum products
in the Nation continued very strong
during September and the first part
of October. Generally favorable driving conditions maintained gasoline
consumption, and the demand for light heating oils rose
seasonally. In the 5 weeks ended October 14, the demand for
maj or refined products at refineries and bulk terminals was
7 percent higher than in the corresponding period last year,
with both gasoline and distillate fuel oil up 9 percent, resid·
ual fuel oil practically unchanged, and kerosene down 3 per.
cent.
Crude oil production in the District during the first half
of October rose moderately, following small increases during August and September. Production during the first 2
weeks of October averaged 3,151,000 barrels per day, which
is 63,000 barrels higher than in the preceding month and
259,000 barrels more than a year earlier. The pattern in the
ELEVENTH DISTRICT ••••••••
Texas .....•.......•... .
Gulf Coast • ....•.•.. . .
West Texas ...........
East Texa s (proper) .•...
90.1
802.2
227.1
115.7
Panhandle ••...••...•.
Rest of Stote •••• •• .•••
Southeastern New Mexico ..
Northern Louisiana ••••••.•
201.1
OUTSIDE ELEVENTH DISTRICT. 3,578.9
6,667.4
UNITED STATES ••.........•
106.5
3,236.4
6,150.9
S e pt.
August
1954
1955
174.0
138.8
19.7
11.4
11.5
- 2.1
- 8,0
62.7
-5.7
4.0
58.1
26.0
9.2
342.5
516.5
4.3
.2
17.1
.8
-.8
-10.2
1.2
SOURCES: 1 Estimated fram American Petroleum Institute weekly reporh .
.l Unite d States Bureau of Mines.
Nation was similar to that in the District, with production
in the first half of October averaging 6,702,000 barrels per
day- or 34,000 barrels higher than in September and 567,000 barrels more than in October a year ago.
A further rise in District crude oil production is indicated
for November in view of the increased allowables scheduled
for Texas. While the number of state-wide producing days in
Texas remains unchanged at 16, the effect of the one less
calendar day in November is to raise allowables 74,389 barrels over the mid-October level.
Refinery crude runs in the Nation declined substantially
during the first half of October but continued noticeably
above the year-earlier level. This decrease followed a moderate decline in September, when the Nation's refinery crude
r!1ns averaged 7,484,000 barrels per day- or 95,000 barrels
less than in August but 545,000 barrels higher than in September 1954, In the District, crude runs to refinery stills also
were down in the first part of October, extending the decline
which occurred in September. District refinery crude runs
in September averaged 2,183,000 barrels per day, down 55,000 barrels from August but 112,000 barrels above a year
earlier.
The declining trend in the Nation's crude stocks, evident
since June, continued during September but halted in early
October. Crude stocks on October 15 totaled 255,100,000 barrels, which is 15,900,000 barrels less than a year ago and is
below the range generally considered desirable. On the other
hand, refined products stocks have been rising because of
the seasonal build-up in heating oils and, east of California,
may be considered a little on the high side. As of midOctober, distillate fuel oil stocks were at a record high, up
15,600,000 barrels from a year earlier. Residual fuel oil
NATURAL GAS, MARKETED PRODUCTION
(In millions of cubic: feet)
Fint quarter
Second quarter
Second quarter
Area
1955
1954
1955
Lauhiano ................•..
New Meulica .... .... . ....... .
281,600
105,200
153,800
1,106,500
403,000
Oklahoma ......... .... .. .. .
Texas .•.•.... ... ... ..... . ..
355,200
123,300
173,000
1,143,700
1,252,600
Total .................... .
1,795,200
1,647,100
, ,966,500
SOURCE: United States Bure au of Mines.
. :~r:~gg
MONTHLY BUSINESS REVIEW
158
stocks were noticeably higher than a year ago in all areas
east of California. Gasoline stocks, however, were slightly
below the year·earlier level.
VALUE O F CONS TRUCTION CONTRACTS AWARDED
(In thousands of dollors)
Jgnucry-Seplember
Marketed production of natural gas in the major producing states lying wholly or partly within this District- Louisiana, New Mexico, Oklahoma, and Texas- declined seasonally
during the second quarter of 1955 but continued to show
an appreciable gain over the year-earlier period. At 1,795
billion cubic feet, marketed production in the District states
comprised 81 percent of the national total.
During September, total nonagricultural employment in the five states
lying wholly or partially within the
District established the first all-time
record since December 1952. September employment, at 3,924,700, reflected a seasonal gain
of 17,400 above August and was 108,100 more than in Sep·
tember 1954. The most important factor in the month-to·
month increase was the reopening of schools, which not only
caused educational employment to rise but also stimulated
employment in the retail trades. Construction declined
sharply, as an increase in Arizona was more than offset by
losses in the other states. Mining employment declined moderately as students left their summer jobs to return to schoo!.
Manufacturing employment during September increased to
733,200; most of the gain occurred in transportation equipment manufacturing, although gains also were experienced in
cotton oil mills, segments of food processing, printing and
publishing, and apparel manufacturing. Scattered information indicates that textile factories in the District are operating at sustained high levels as orders are running well ahead
of last year.
Unemployment during September decreased sharply as
students withdrew from the labor force and winter school
employees returned to theit· regular jobs. In Texas, the only
state for which data are available, unemployment during
the month totaled 103,000. Texarkana continued to be the
September
1955
Area gnd tYPIl
September
1954
August
1955
ELEVENTH DISTRICT... S 148,962 S 166,11Sr S 139,06 3
4S,186
84,S69r
Re5idenlio!.... . ...
51, lS8
SI ,5 49r
90,877
All other. . . . . . . . . .
97,774
1,894,841
UNITED STATES l . ... . 2,034,895 1,816,232
835,418
777,332
Residentio l. . . .....
733,382
AUother .. " ... .. . 1,301,513 1,038,900 1,059,423
1954
1955
1,332 ,181
580,156
752,025
18,184,044
7,984,550
10,19 9,49 4
1,039,920
488,629
551,291
14,477,24 1
6, 196,199
8,281,042
I 37 state s ecat of the Rocky Mounlain~.
r- Revise d
SOURCE: F. W. Dodge Corporotian.
only major labor market in the District with a substantial
labor surplus; however, unemployment in the city has decreased considerably from a year earlier_
The value of construction contracts awarded in ti,e District
during September totaled $148,962,000, or 7 percent above
August but 10 percent below September 1954. The year-toyear decline was accounted for by residential awards, which
were down 39 percent, although they demonstrated a 6-percent gain above the August level. All other awards during
September were up 8 percent from the preceding month and
were 20 percent more than a year earlier. During the first
three quarters of 1955, total awards in the District exceeded
those of a year ago by 28 percent; residential awards were
up 19 percent; and all other awards were up 36 percent.
In the Nation during September, the value of construction
contract awards was 7 perce nt above the preceding month
and 12 percent above a year earlier. However, residential
awards were down 12 percent from August and 6 percent
from September 1954, while all other awards were up 23
percent from the previous month and 25 percent from last
year. Compared with the /irst 9 months of 1951, total awards
in the Nation rose 26 percent during the same period in
1955 ; residential awards, 29 percent; and all otl,er awards,
23 percent.
8UILDING PERMITS
9 months 1955
Pereenreg.
dlange in
valuation from
NONAGRICULTURAL EMPLOYMENT
Five Southwestern Stalesl
September 1955
Percent change
Sept. 1955 from
Number of persons
September
Type of employment
Total nonagriculrural
wage and salary workers ..
ManufachJting •• • • . •••• ••
September
August
1955p
1954
1955
3,924,700
733,200
Nonmanufacturing ........ 3,191,500
Mining . ....... , ......
243,500
Construction, .•........
278,400
Transportation and public
utilities ..........•. .
397,900
Trad e ...... . . ... .. ... 1,003,8 00
Finance ... .. . . ..... . . •
162,700
Service •....... .......
452,500
Government ...... . ... .
652,700
Sept.
1954
Aug.
1955
3,816,600
705,300
3,111,300
233,400
272,800
3,907,300
732,500
3,174,800
245,200
285,200
2.8
4.0
2.8
4.3
2.1
.4
.1
.5
-.7
-2.3
392,200
978,400
156,100
446,900
631,500
399,100
997,100
163,600
453,600
631,000
1.5
2.6
4.2
1.3
3.4
- .3
.7
-.6
_.2
3.4
1 Arizona, Loublanc, New Mexico, Oklahoma, and Texcl$.
p-Prelimindry.
SOURCE: Stale employment cgencies.
Area
Number
LOUISIANA
Shreveport ....
459
TEXAS
176
Abilene .... . .
201
Amarillo ..... .
Austin ....... .
266
Beaumont .. . . .
338
278
Corpus Chrbti ..
Dallas ....... . 2,089
482
EI Paso ... , ...
Fort Worth,.,.
687
Galveston .... .
87
848
Houston .... "
25 1
lubbock .. ....
Port Arthur . . , .
199
San Anlanio . .. 1,675
413
Waco ... . , . . .
111
Wichita Falls ..
Valuation
Sept. Aug.
1954 1955 Number
1,986,924 -47
Valuation
Percentage
chenge in
valuation
from 9
months
1954
-58
4,309
29,261,391
42
1,.(84
2,323
2, 827
2,849
3,941
20,964
4,003
7,057
9,036,732 - 59
1,885,961 - 2
590,453
60
4,603,864 - 27
1,0 46,490 - 18
1,658,875
30
_42
31
- 18
29
-23
-28
41
0
-56
3
- 22
2
0
- 28
105
9,791
2,650
1,406
16,000
2,737
1,284
15.32 0,450
17.848,567
31,707,136
7,247,838
24,606,483
138,756,7 84
27,011,589
44,969,62 3
4,150,150
113,133,041
22,471,835
",082,857
45,394,626
12,106,525
10,486,421
51
24
8
6
-6
23
34
35
-29
-6
11
43
13
6
47
Tolol-16 cities .. 8,560 $50,871,945 - 30
_16
84,580
$548,555,316
14
1,440.629
1,75.4,511
2,910,050
1,05 1,783
1,681,179
14,035,240
2,556,652
4,079,937
10 '
61
-2 0
12
- 42
_ 22
- 25
3
552,665 -64
955
4
TH
FEDERAL RESERVE
DIS T R
@FedFRASER