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MONG£HLG)( BUSINESS FEDERAL REVIEW RES E R V E Vol. 41, No. II BANK o F DALLAS DALLAS, TEXAS November 1,1956 SOUTHWESTERN AGRICULTURE IN TRANSITION J. Z. ROWE, Agricultural Economist Federal Reserve Bank of Dallas Significant changes occurred in southwestern farming and ranching during the past quarter century. During this time, agriculture experienced a severe depression, two wars, a pro· longed drought, and the birth of numerous programs designed to assist the farm business in weathering economic and na. tural calamities. A growing population, the adoption of technological improvements in agriculture - as well as in nonagricultural industries, and a high level of general busi· ness activity have resulted in far.reaching changes in farm· ing and farm·family living. The acceleration of the trend from a self· sufficing to a commercial· type agriculture has resulted in the need for in· creasingly larger amounts of cash to defray the costs of family living items and farm production goods. As a result, farmers have become more dependent upon other segments of the economy to supply their needs and provide a market for their products. The Basis for Change Much of the basis for the changes in American agriculture had been laid prior to 1930. The establishment of agricul· tural experiment stations and extension services and the in· troduction of vocational agricultural training had provided research and education to rural people. The foundation for accelerating the rate of mechanization also had been laid. The cumbersome tractors, adapted principally for heavy work, were gradually being replaced with lighter, faster gen· eral'purpose tractors, and a start had been made in equipping them with rubber tires and mounted equipment. Government programs designed to meet the problems of low agricultural income probably stimulated some of the changes in farming. Under the acreage control programs of the Agricultural Adjustroent Administration of the early • 1930's, farmers were anxious to increase acreages of high. , profit crops in order to utilize equipment fully and obtain the benefits of the programs. Th~ reduction in numbers of croppers and share tenants was retarded during the early part of the Agricultural Adjustroent Administration, apparently because landlords were subject to loss of benefit payments if they needlessly removed or discriminated against tenants. A major stimulus which accelerated changes in agriculture was the exceptionally heavy need for farm products during World War II and the continuance of a high level of demand for food and fiber following the cessation of hostilities. Short· ages of agricultural labor, created by manpower require. ments for the Armed Forces and defense industries, resulted in further pressure to mechanize and combine farming units. Farm Productivity Output per farm worker rose sharply as those remaining in agriculture utilized the advances of science and technology. Increased farm labor productivity in the United States has made it possible for one worker to supply almost 20 people with agricultural products, which reflects an increase of about nine persons since 194.0 as contrasted with an increase of about seven persons during the 100 years prior to 1940. This increased efficiency has resulted from many changes, which often have been so gradual that they passed almost unnoticed. Much of the gain in farm output in the Southwest has reo sulted from the adoption of new varieties and hybrids, the increased use of higher.analysis fertilizers and other soil· conserving practices, the expansion of irrigation, the in· creased timeliness of farm operations which results from greater mechanization, and the utilization of acreages form· erly devoted to the production of feed for work stock. The transition in southwestern agriculture has resulted in changes in the structure of farming and ranching and in rural living that are perhaps irreversible. One of the more important developments is the increased size of farms 1 and the accompanying decline in numbers. 1 Tbe United States Bureau of the Census makes no distinction be· tween farms and ranches ; thus, livestock ranches are included in the general term "farms." All the land under the control or management of one person or partnership is included as ODe farm. Control may be through ownershjp, lease, rental, or cropping arrangement. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) MONTHLY BUSINESS REVIEW 162 PERSONS SUPPORTED BY PRODUCTION OF ONE FARM WORKER states experienced the same rate of growth. The acreage per farm in Arizona increased sixfold; in New Mexico, it rose over 2113 times; in Texas the acreage per farm almost doubled; and farm sizes in both Oklahoma and Louisiana increased about 80 percent. Between 1950 and 1954, the average size of farm in the District increased 16 percent, compared with a 12-percent rise for the Nation. The growth in average farm size for the District states was not as rapid during the past few years as it was immediately prior to and during World War II. During the 1935-45 period, the average farm size increased 55 percent; but during the next 10 years, the acreage per farm rose only 35 percent. Most of this difference in rate of growth, however, resulted from the extremely large gains in Arizona and New Merico - particularly during 1940-45. SOUllct'U.8 .OIParIIllUI of A~rICllllu". The size of farms in the District states has been growing since 1925, but it was not until a decade later that the trend toward larger units accelerated. During much of this time, the total land area devoted to fanning also was increasing, but not as rapidly as the size of farms. Land in Farms In 1930, slightly more than half of the land area in the District states was in farms. Since then, the land in farms has increased more than a third, rising in 1954 to 73 percent of the total land area in these states. The greatest increases in the proportion of land in farms since 1930 have occurred in Arizona, New Mexico, and Texas. Part of the gain reflected an expansion in irrigation, but a portion resulted from a more complete enumeration of farm lands in subsequent censuses. Under existing technology, the acreage in farms in the District states in 1954, at 284,387,506 acres, probably is close to the peak. Reclamation may provide additional acreage, but widening and construction of roads and expansion of industrial, recreational, and residential areas are likely to result in a net reduction in farm land in the future. The number of farms in District states, which reached a peak of 944,751 in 1935, declined to 553,433 in 1954, or almost 40 percent. The average size of farm increased to 514 acres, being more tl,an double the size a quarter century earlier." Although the average size of farm increased steadily in each of the District states from 1930 to 1954" not all of the Because of changes in the census definition of a farm, the data are not strictly comparable throughout the period j however, the changes have not been great enough to obscure basic trends. 2 The exceptional gains in farm size immediately preceding and during World War II partially reflected the rapid combination of units to take advantage of mechanization and to offset farm labor shortages, as well as tl,e relatively profitable operations resulting from rising farm product prices. More importantly, however, the gain in farm size was the result of substantial additions of grazing land in Arizona and New Mexico. The changes among the various sizes of farms comprising the average have been even more significant than the changes in the average size of farm. Studying only the trend in average size does not pinpoint the important developments that have resulted from the impacts of economic and technological forces. Size of Farms The size of the farm business in District states - as meas· ured by acreage - has followed three broad trends. First, there has been an increase in the proportion of farms with fewer than 10 acres. Secondly, the proportion of small- and medium-size farms (those Witll between 10 and 179 acres) has been declining, with the largest decrease occurring in the percentage of farms with fewer than 100 acres. Thirdly, the proportion of the District's farms with 180 acres or larger has increased, the highest relative gain occurring in the group of farms with 260 acres or more. The proportion of farms in the District states with fewer than 10 acres has increased 2% times since 1930 and now accounts for a tenth of the total. Most of these represent rural residences for retired persons or part-time farms of workers employed in off-farm jobs. This group of extremely small farms may increase further, particularly if industry locates in rural areas and provides employment opportunities. In addition, as older farmers become eligible for social security benefits, many of them may decide to retire to small acreages to occupy their time and supplement their retirement benefits with home-grown produce. Farms with between 10 and 179 acres - including the traditional homestead size - accounted for only 56 pcrcent of the total number of farms in the District states in 1954, t MONTHLY BUSINESS REVIEW compared with over three-fourths in 1930_ More than half of the decline in this group occurred among farms with fewer than 50 acres, which generally are too small to be economic units_ Many of these small tracts are subsistence farms, providing only part-time employment for the operator and his family, and a substantial portion of the family's income is derived from oIT-farm sources_ The problem of low farm income is most acute among operators of farms within the 10- to 179-acre group_ In the absence of supplemental income, the farm family's living may be near subsistence levels_ The agricultural resources of operators of small units usually are insufficient to produce an adequate volume of crops and livestock or to utilize fully the labor of the farm family, except where highly specialized production is feasible_ Production of high-value commodities, such as vegetables and dairy products, is one method of overcoming the disadvantage of small-size farms_ There is a limit to which this can be accomplished, because of location or inadequate market outlets. Farms in the 10- to 179-acre group may show some further decline in response to the need for large-volume output at lower per unit costs. In 1954, a third of the farms in District states had 180 acres or more, or about twice the proportion in 1930. The greatest relative gain was made by farms with 260 acres or over, particularly those with above 1,000 acres. The proportion of farms in the latter group has almost tripled since 1930, although they still comprise less than 6 percent of the totaL The rising importance of farms with 180 acres or more probably reflects efforts of farmers to take advantage of mechanization and volume output. The increased proportion of extremely large-size farms (1,000 acres or more) is alarming to some people. Most of these farms are located in areas where considerable acreage is needed for a sufficiently large output to be economically feasible_ The large-size farms are located primarily in the low-rainfall areas in the western part of the District, where extensive range livestock operations and wheat farming are conducted. In 1954, about 70 percent of the farms with 1,000 acres or more in the District states were located west of a line generall y extending sou thward from the northern boundary of Oklahoma through Enid, Oklahoma, and San Antonio, Texas, to the Rio Grande River. The trend toward fewer small-size farms and the gain in numbers of larger units are not phenomena of the post-Korean period only_ The increase in the number of farms with 1,000 acrcs or more in District states between 1950 and 1954 was only a fourth of that between 1935 and 1940 and about a third of the increase between 1930 and 1935. The decrease in numbers of farms of 10 to 179 acres during the 5-year period cnded in 1954 was about the same as in 1935-40. A further increase in the number of large farms is likely as the economies of large-scale operations are more fully realized_ Continued improvement in the design and operation of farm equipment and machinery may result in add i- 163 PERCENTAGE DISTRIBUTION OF TOTAL FARMS. BY SIZE GROUP Five Southwestern States sr.u group (Acres) Under to ..•.••......• 10 to 29 ••••• . ••••• .• 301049 ••• •• .••••• •• 50 1069 ••••. .• ••• . •• 70 to 99 •••..•••••••• 10010139 •..••••••• • 14010179 ••••••••••• 18010219 ........... 22010259 ••••••.•••• 26010499 . •• ••.••••• 500 to 999 ••••••• •• •• 1,000 and over •••••••• Tolal •• •• •.•••..•••• 1930 1935 1940 1945 1950 1954 4_3 34.8 6.8 2.8 2.0 6_4 19.4 13.8 8.9 11.6 9.9 11.2 3.7 2.5 7.1 3.2 2.3 7_3 17_4 12.4 8.1 11.0 9.8 10.8 4.1 3.0 8.7 4.0 3.4 10_9 15_5 11.3 7.4 9.8 9_2 10.2 4.3 3.2 9.8 4.6 3.8 8.5 15.3 10.7 7.1 9.3 9.2 9.7 4.7 3.8 11.5 5.6 4.6 10.1 14.2 9.7 6.4 8.6 8.3 8.9 4.6 3.9 12.8 6.9 5.6 100.0 100.0 100.0 100.0 100.0 100.0 21.9 27.4 SOURCE: United States Sureau of the Census. tional consolidation of holdings, but growth of large-scale units is apt to be a gradual process. It is difficult, if not impossible, to pinpoint any single factor as being mainly responsible for the rate at which the changes in the various sizes of farms have occurred. Mechanization, war-induced farm labor shortages, nonfarm employ. ment opportunities, changes in farm profit prospects, weather risks, and even farm programs have been factors influencing the size of the farming unit. Generally, the average acreage of all farms increased during the past quarter century - regardless of the principal product grown; thus, the factors responsible for the trends in the size of farms apparently were common to all types of farms. The changes in the proportion of farms within the various size groups illustrate the fact that agriculture can be quite dynamic in making adjustments to conform to a different set of relationships. Trends in the average acreage in farms are an imperfect measure of the changes in the size of the agricultural business. Acreages needed for economic family-size farms in the production of dry-land crops are different from those for irrigated crops; acreages of pasture needed in eastern parts of the District for a given number of animal units are far below requirements for the same number of livestock in arid western areas_ Within the same general farming area, differences in soils, topography, and types of enterprises - and even in the skills and managerial ability of operators - will result in variations in acreages needed for an economic farm unit. The 1954 Census of Agriculture contains data on farms by economic class in 1949 and 1954 which provide the distribution of farms in terms of gross value of sales_ Between the years, the changes occurring in economic classes of farms would be influenced greatly by relative changes in production and prices. Total agricultural output in the District states in 1954 was a tcnth smaller than during 1949. This decrease resulted from a 16-percent decline in crop output, which was only partially offset by a I-percent increase in marketings of livestock and livestock products. Moreover, prices for all farm commodities were 4 percent lower, inasmuch as a 9-percent increase in crop prices was more than offset by a IS-percent decline in livestock prices. Thus, it would be reasonable to expect a reduction in the proportion of the farms in 195'4 with extremely large gross sales and an increase in the pro- MONTHLY BUSINESS REVIEW 164 portion of those with a smaller dollar volume of marketings. This was not strictly true. FARMS BY ECONOMIC CLASS, 1954 AND 1949 Five Southwestern States M percenta g e of Value of Sales The proportion of noncommercial farm s (part. time and residential) in District states increased to almost 40 percent of the total number of farms in 1954, or 5 percentage points more than in 1949. In the Nation, these farms accounted for about 30 percent of the total, or slightly less than in 1949. The gain in importance of noncommercial farms in the South· west partially reflects the rising significance of off-farm work and the larger numher of farm families whose income from other employment exceeded that received from sales of farm products, although the smaller output and lower prices between the 2 years may have been a factor. The proportion of noncommercial farms among the south· western states in 1954 was the lowest in Arizona (33 percent ) and the highest in Louisiana (almost 46 percent). These farms accounted for 38 percent of the total in both Oklahoma and Texas and 4.3 percent in New Mexico. The proportions increased from the 1949 levels in all of the southwestern states except Arizona. In line with trends for the Nation, commercial farms Witll sales of less than $5,000 in 1954 accounted for a smaller proportion of all southwestern farms than 5 years previously. On the other hand, the proportion of commercial farms in the District states with sales totaling $25,000 or more i~ creased slightly, and the percentage of farms with gross marketings of $10,000 to 524,999 gained fractionally between 1949 and 1954. Excluding part-time and residential farms, each class with sales of $2,500 or more in 1954 comprised a larger proportion of total commercial farms than in 1949. Almost 58 percent of commercial farms in 1954 had gross - I-N All farms Number Class of fa rm, IValue of products sold) ~ 1954 COMMERCIAL FARMS ........ ... 335,088 Class 11$25,000 or more) . .. ... 20,309 Cia" illS 1 0.000-524,999). . .. 40,700 Cia" III 155,000-59,999) . • ... . 55,925 Clem IV ($2,500· $4,999) .. .. .. 76,024 Cia" V 1$1,200-$2.499) ...... 85,288 Clan VI 1$250·51,199) ... ..... 56,842 OTHER fARMS . ............... 219,007 Part-time' •................ . . 87,294 Residential l ieu than $250 value of products sold) . • . ..• 131,468 Abnormol (public Qnd private 2,(5 institutional forms, etc.) . . . • .. All FARMS .................. . 554,095 Commerciolforms 1949 1954 1949 1954 1949 410,166 60.5 3.7 7.3 6".9 3.0 7.2 100.0 100.0 6.1 4.6 12.1 11.1 10.1 10.7 16.7 22.7 16.4 21.9 25.4 25.8 20.2 18,693 45,428 67,340 89,882 105,722 83.101 22 1,839 83,070 13.7 141.2 15.4 16.7 13.1 35 .1 10.3 39.5 15.8 13.1 138.177 23.7 21.9 592 632,005 .0 100.0 17.0 .1 100.0 1 form s with the 'Va lue of sQ les totQling $250 to $1,199 and with operators either reporting 100 days or more of off-farm work or reporting other income ex.ceeding the 'Value of farm soles. SOURCE: United States 8ureau of the Census. sales of $2,500 or more, compared with 54 percent during the previous census period. The largest proportion of residential and part-time farms and low·income commercial farms is located in the eastern third of the District, where farms are small and nonfarm em· ployment opportunities are relatively more numerous. For example, over 72 percent of the noncommercial farms in Texas in 1954 were located in Crop Reporting Districts 4, 5, and 8, which have significant industrial development. These tlu'ee crop reporting districts accounted for over half of the commercial farms in the State. Approximately three-fourths of the farms selling between $250 and $1,199 of products were located in these three districts, as were two·thirds of the farms with gross sales between $1,200 and $2,499. In contrast, western Texas Crop Reporting Districts 1-N, 1-5, and 6 accounted for only 2 percent of the State's noncommercial farms and about 14 percent of the commercial farms. However, fewer than 6 percent of the commercial farms with sales between $250 and $2,499 were located in these districts. Almost half of the Texas commercial farms with sales of $25,000 or more in 1954 were located in the three western crop reporting districts, compared with fewer than a fifth of the total in the three eastern districts, PERCENTAGE DISTRIBUTION OF FARMS, BY ECONOMIC CLASS, 1954 Texas Crop Reporting Di strict s COMMERCIAL FARMS, 8Y CLASS [Value of products sold) Crop reporting district I-N ...... 1-S ..... . 2 ........ CROP REPORTING DISTRICTS OF TEXAS 3 ........ 4 ....... . 5 ........ 6 ........ 7 •....... 8 ........ 9 ........ Commercia I forms 6.1 6.6 9.8 7.0 22.0 Class I 1$ 25,000 or more) 23.2 22.0 4.1 2.1 4.8 4.1 4.7 Closs II 14.3 18.8 11.1 '.2 13.3 15.2 1.0 5 .5 15.2 5.4 2.5 3.7 9.3 10.4 2.8 8.1 7.7 1.8 5.7 9.5 5.7 2.0 5.9 State ... 100.0 100.0 100.0 10 ·N .. . . 10- 5 ..... ••• Closs III 6.5 6.7 15.4 6.7 22.8 10.2 CIon V Clau VI 3.4 3.1 13.3 6.9 28.3 1.5 1.7 7.6 9.3 0.8 .6 3.9 8.4 11.0 27.4 18.7 .9 6.6 .5 6.7 .3 5.3 10.6 16.4 19.2 6 .5 2.8 4.3 5.1 2.' 2.9 3.9 2.6 2.5 33.2 .3 3.5 20.7 4.4 2.3 1.9 100.0 100.0 100.0 100.0 Includes port-time, residential, and abnormal forms. SOURCE: United States BureQu of the Census. I CloS! IV 1$10,000· 1$5.000. 1$2,500· 1$1,200. 1$250· Other $24,999) 59,999 1 $4,999) $2,499) $1,199) fo rmsl 20.0 1.1 .9 3.3 7.6 .. 17.9 " 1.8 3.1 12.6 7.7 1.7 1.9 100.0 ~ MONTHLY BUSINESS REVIEW As contrasted to the eastern crop reporting districts of Texas, agriculture in the western part of the State is characterized by large farm and ranch units, more extensive irrigation, and topograpbic and climatic conditions favoring the use of large-scale machinery_ Fewer opportunities for alternative employment and crop failure risks have prompted commercialization of agriculture to a greater extent than in the eastern distriets_ One of the disturbing factors in the southwestern agricultural situation is that more than 40 percent of the commercial farms have gross sales below $2,500_ When production expenses are deducted, little remains for family living, re payment of debts, or capital accumulation_ Although data are not available on the net income of these low-income farms, the average net income (including value of home consumption and rcn tal value of farm dwellings) for all farms in the DistTict in 1954 totaled $2,263, or 22 percent less than in 1949_ Off-farm Employment Fortunately, off-farm work and other sources have tended to sustain the farm family's ineome_ During 1954., almost half of the farm operators in the District states reported off-farm work; of this group, two-thirds worked 100 days or more off their farm s_ A quarter century earlier, only 29 percent of the operators reported ofT-farm work, and fewer than a third of these spent over 100 days in such employment_ While data are not available on the amount of off-farm income reccived by District farmers, 38 percent of the farm operators in 1954 had outside income exceeding agricultural income. In the Nation, about 29 percent of the total net income of the farm population was derived from nonfarm sources_ The rising trend in the proportion of farmers engagcd in off-farm work is the result of pressures to supplement family income and the attractiveness of alternative nonagricultural cmployment. Some of the increase in off· farm work may be DECREASE IN RURAL -FARM POPULATION F IVE SOUTHWESTERN STATES AND UNITED STATES g. . A.,.RIZO A , r;:LO~ISI due to custom farm labor and employment on neighboring farms, but a major proportion probably is the result of employment in nonagricultural j obs_ Since 1930, the farm population in the Southwest has declined almost one-half, as opportunities for nonfarm employment have increased. In many instances, part· time off-farm employment may be the fir st step before leaving the agricultural field_ The loss of farm population in many communities has resulted in rather severe adjustments in the bnsiness of merchants. Where expansion in nonagricultural segments occurred, adjustments were less severe since merchants were able to shift emphasis to services and products needed by nonagricultural customers. On balance, the increase in offfarm work and the smaller farm population probably have resulted in a gain to the southwestern economy as a whole. The enlargement of agricultnral holdings has made it possible for farmers to increase efficiency and introduce economies, and, therefore, to receive a larger proportion of the total agricultural income. For persons remaining on part-time farms, snpplementation of the family's income through off-farm employmcnt has resulted in a higher and more stable income and has contributed to the growth of the economy. Mechanization Paralleling the decrease in the number of farms and the farm population and the increase in thc size of farms and off-farm work has been the striking growth in the usage of tractors and auxiliary eqnipment, electricity, and fuel-driven power units. Power equipment makes it possible for farmers to plant, cnltivate, 811d harvest crops from larger acreages in less time and with the same or lower labor requirements. Since 1940, the number of tractors on farms in the District states has increased 185 percent. The harvested acreage per tractor in 1940 was 276 acres; but by 1954, it had been reduced to only 88 acres, or about two-thirds. The reduction in harvestcd acreage per tractor does not indicate fully the extent to which tractor power usage has risen, because of the upward trend in sales of tractors with higher horsepower ratings. In 1939, about 94 percent of the all·purpose farm tractors sold in the Nation had belt horsepower ratings of 30 or below, compared with only 16 percent in 1954; approximately 45 percent of the tractors sold in 1954 were rated at 40 belt horsepower or above. NA r...~ rl HEW M .:;JCO "'rCf"tQ~ of 165 .t per'Oft. 011.1 loath ,~, b.g l""11I9 Qnd ." ~ ol.odl </.(:od • . SOURC£ U. S . Ot por,m .ftI el Aorl~wlru". Accompanying the higher tractor horsepower, auxiliary equipment was developed which increased the capacity of the operator to carryon the farm business. The larger and more efficient machines permit the operator to make substantial savings in labor, time, and energy - and often in costs of production. In recent years, the use of other types of farm cquipment has increased at a faster rate than that for tractors. Although the number of farm tractors in the District states rose a fifth between 1950 and 1954, pick-up hay balers incrcased 73 percent, corn pickers more than doubled, and the number of field forage harvesters more than quadrupled. Mechanical harvesting of cotton has increased steadily; in 1955, over a fifth of the Tcxas cotton crop was harvested mechanically, or double the proportion in 1949. MONTHLY BUSINESS REVIEW 166 The substitution of machinery for labor has been an al· most continuous process in agriculture. As labor shortages grew during World War II, farm operators increasingly sought to introduce labor·saving equipment; however, war· time scarcities of machinery retarded the rate of mechaniza· tion. After hostilities ceased, the trend toward mechanization accelerated as machinery became more plentiful and high wages in the nonfarm segments drew more people from farms. As mechanization of some of the more important south· western crops - particularl y corn and cotton - is adopted on a wider scale, the proportion of hired workers to family workers may decline. Larger farm units and lower birth rates of farm families are counteracting influences which may tend to maintain the importance of hired workers in agriculture. Many farm chores - especially in livestock productionrequire decisions and close attention which machine tech· nology has not been able to supplant; however, mechanized watering and feeding devices and other innovations are reo ducing labor requirements. Progress in mechanization and the adoption of improved techniques in production and marketing have resulted in more exacting requirements for successful farm operators and workers. A modern farm needs alert, skilled workers to make the most effective use of power equipment. The sizable investment in much of today's equipment requires careful and regular maintenance, and the high·speed machinery reo quires expert operators. Obtaining and keeping good "tractor men" remaios a problem of farm operators, as many workers highly skilled in the use and care of farm machinery are also well adapted to semiskilled and skilled jobs in nonagricultural lines. Reductions in numbers of workers needed to carryon farm operations have resulted in improvement in communications between the farmer and his workers and in the supervision of tasks. As long as large numbers of workers are needed, expansion in farm size under one management is complicated unless an effective method of worker supervision is developed. The use of large.scale power equipment for farm work per· mits the operator to spend a greater portion of his time in more productive farm management activities. farmers owning land and renting additional acreage to en· large their farm business increased from about 8 percent in 1930 to 21 percent in 1954. As a result, tenancy declined steadily. Some tenants became farm owners, while others moved out of agriculture or became farm laborers. In 1954, about a fourth of the farms in District states were under the management of tenants, compared with 60 percent in 1930. Tenant farmers accounted for one of every three farm operators in Louisiana, about one of every four ·in both Texas and Oklahoma, and only slightly more than one of every 10 farmers in Arizona and New Mexico. The largest gain in the proportion of farm owners and the greatest decline io the proportion of tenants in District states occurred between 1940 and 1945, and by almost the same amounts. During this period, agricultural prices and man· power requirements for both the Armed Forces and defense industries rose sharply. While the alternative employment op. portunities in nonfarm jobs drew some tenants from farms, the relative attractiveness of farm ownership provided those with capital or credit the incentive for buyjng farms or en· larging existing holdings. Also, military service was quite im· portant in reducing numbers of tenants since, traditionally, the younger farmers are those who rent as their first step io owning land. Farm operators under 25 years of age accounted for only 2 percent of the total farmers in District states in 1945, or less than half the proportion in 1940 and a fifth smaller than in 1930. In 1950 the proportion of these youthful farmers increased slightly, but the recent census indicates that they comprise less than 2 percent of the total. The proportion of farmers between 25 and 34 years of age also has shown an almost continuous decline sioce 1930. Farmers 45 years of age and older consistently have gained in importance; in this FARM OPERATORS. BY AGE FIVE SOUTHWESTERN STATES Management decisions of farmers are integrally related to the tenure arrangements under which they operate. Under the relatively high capital requirements of present· day farm· ing, stahle tenure arrangements are desirable to justify the accumulation of facilities and equipment for the efficient use of resources. Stability of tenure is especially helpful during times of natural adversity, such as drought, or wben addi· tional capital is required to undertake adjustments in the farming operations resulting from natural and economic forces and - in some cases - governmental programs. Farm Operators During the past quarter century, the proportion of farm· owner operators in the District states increased continuously. In 1954, over half of the farms were operated by owners, com. pared with fewer than a third in 1930. The proportion of ODWalot . . .,..,tI.... souille£ U.' .Ouar1I11U! 01 ,.,rI,.lIurl. 167 MONTHLY BUSINESS REVIEW group, the proportion of those 65 years and over rose from 8 percent of the total in 1930 to 17 percent in 1954. The increase in the average age of farm operators is understandable in the light of changes that have occurred in both agricultural and nonagricultural sectors of the economy. Advancements in nutrition, medicine, sanitation, and other fields have contributed to a longer life span. However, retirement programs among farmers have not been as widespread, nor in effect as long, as have those for nonagricultural workers. An amendment to the Social Security Law in the summer of 1954 extends coverage to farm operators for retirement benefits under the Federal Old-Age and Survivors Insurance Program. This coverage could significantly affect the relative ages of farm operators in the future as many of the older farmers participate in the program long enough to qualify for retirement benefits. Traditionally, farmers have regarded land ownership as a major factor in providing security in old age. The energies and capital of a lifetime often have been used to acquire land so that the farmer would have a place to live and an income during his twilight years. Once his capital is invested in land, active management may be continued as long as possible, in the absence of supplemental sources of income, in order to maximize the returns accruing from both ownership and management_ With the expansion of employment in nonagricultural sectors of the economy, the younger segment of the farm population has been able to take advantage of alternative opportunities_ Young farmers have greater mobility than older ones, who have considerable investment in land and equipment or deep-rooted ties in their communities. Improvement of educational facilities in rural areas has provided young people with broader backgrounds and greater skills useful in nonfarm jobs_ Also, the increasing number of farm youths entering college has tended to reduce the proportion returning to the farm. Traditionally, the beginning farmer rents land to accumulate capital and experience needed for eventual farm ownership_ In many cases, father-son partnership arrangements are made, so that the family farm can be handed down as a going concern when the father dies or relinquishes active management. Since social security benefits soon will be available to many older owner-operators, many farm properties may become available to young replacement operators through leasing or purchasing arrangements designed to minimize capital gain taxes. The changes in southwestern agriculture would have little significance unless they make it possible for farm families to increase their levels of living. The disparities in living conditions between city dwellers and farm families have narrowed gradually_The extension of electric and telephone services into rural areas, construction of all-weather roads, and improvement in educational facilities for adults and youths have contributed to the betterment of rural living. The reduction in the time needed to go from the farmhouse to the courthouse has made it possible for rural families to share in the advantages offered by larger urban centers and yet retain the many advantages of rural living they find enjoyable. Indexes of the United States Department of Agriculture show that the levels of living of Texas and Oklahoma farmoperator families were twice as high in 1954 as in 1930 and almost three times higher in Louisiana. The improvements made in levels of living in these three District states (data are not available for Arizona and New Mexico) were at faster rates than those for the Nation, although the levels of living in Oklahoma and Louisiana remain below the national average. Summary A comparison of the characteristics of southwestern agriculture today with those a quarter century ago indicates that changes have been revolutionary. However, data in one period as compared with those in another are only still pictures rel1ecting events at particular moments; and if the motion of events between the two periods is presented, it would indicate that the changes are evolutionary, rather than revolutionary. When changes occur rapidly, it is often more difficult to comprehend the rate at which the transition is taking place than to visualize the changes themselves. The impact of wars, capriciousness of weather, introduction and application of new technology, and ebb and How of economic forces within the past two and a half decades produced a setting in which rapid changes were inevitable. The transition is as much the result of forces outside agriculture as those from within. The tremendous expansion of industrialization and the resultant opportunities for employment; the exceptional demands born of wartime scarcities and post-World War II aid programs; the improvements in transportation, communications, and services; and a prosperous, growing population are factors which have influenced, and will continue to influence, agriculture. Many of the trends evident since 1930 are likely to continue. Some further decline in numbers of commercial farms and farm employment and an increase in farm size may occur; but with favorable weather conditions and an orderly growth in over-all economic activity, these developments may take place at a slower rate. There is a practical level near which total farm employment is likely to stabilize, although workers in agriculture may comprise a still smaller proportion of the total lahor force than they do at present. Economic pressures and new technology may result in a further increase in the number of large farms, and the direction and extent of this change will vary according to the location and type of farm or ranch. A surprisingly large number of farms produce only small amounts of produce for market, and a significant proportion of the operators has other income. The rising importance of part-time farming has provided an expanding market for garden-type tractors, custom work, and other agricultural supplies and services designed for the special needs of this group. On the other hand, the output of a large number of 168 MONTHLY BUSINESS REVIEW farm operators not having supplementary income is inadequate for family needs. In this group, adjustments are needed to improve efficiency and income, provide other employment, or both_ Among the efficient commercial farms, the effect of the changes has been to place more emphasis upon business management. Capital requirements are likely to continue at a high level, and cash expenses may represent a rising proportion of the total costs of operating a farm; consequently, good financial management will become one of the prerequisites of a successful farmer. The past two decades were partially characterized by the adaptation of power and other mechanical sciences to farming, and the future is likely to be characterized by the addition of chemistry and other physical sciences. The development of systemic poisons, weed killers, and antibiotics and the use of hormones may result in as startling an achievement in production efficiency as the general-purpose tractor did_ The rapid expansion in manufacturing, trade and service, and government employment in the Southwest in recent years has tended to reduce agriculture's relative importance in the total economy. In 1954, agriculture accounted for only 8 percent of total personal income, compared with about 18 percent in 1930_ However, the share of income derived from any industry does not reflect fully its importance to the economy. Like the primary metals industry, agriculture supplies raw materials to and is a customer of a multitude of secondary and tertiary industries engaged in processing, manufacturing, warehousing, transportation, distribution, finance, and services. Because of the interdependence of industries, the wellbeing of one influences others. Aside from the industries furnished raw materials by agriculture, merchants, bankers, and others are aware of the importance of rural customers. In 1954, farmers in District states spent $1,838,100,000 for farm production goods and paid $148,000,000 in rent to nonfarm landlords and as interest on farm mortgage indebtedness. Depreciation on farm capital amounted to almost $355,000,000. After deducting these operating costs, southwestern farmers and ranchers had a net income of $1,332,200,000 for family living or investment. Thus, agriculture in District states in 1954 was almost a $4,000,000,000 industry. The transition during the past quarter century and the changes likely to occur within the foreseeable future point toward a continuing dependence of farmers upon nonfarm commodities and services to provide a substantial part of the production items needed for profitable operations. Although there may be a decrease in the numbers of farms and people on farms, the aggregate dollar volume of purchases by farmers in the Southwest is likely to be maintained. MONTHLY BUSINESS REVIEW 169 REVIEW OF BUSINESS, AGRICULTURAL, AND FINANCIAL CONDITIONS Consumer buying at Eleventh District department stores during September was 6 percent be/ow that in August but was slightly higher than in September 1955. Sales of consumer durable goods declined sharply during the month and were at the lowest point since February last year. Department store stocks increased 4 percent during September and at the end of the month were 3 percent larger than a year ago. Furniture store sales declined 13 percent from August and 1 percent from September 1955. Agricultural prospects were improved slightly during October as a result of light to heavy rains over most of the District. Fal/ harvesting of major crops, except cotton in western areas, is virtually complete; cotton production in the District states is indicated to be 10 percent below output in 1955. Fall grazing conditions as of Odober 1 were at all-time low levels, and prior to the recent rains, cattle receipts at major southwestern markets were exceeding those at the same time a year ago. Crude runs to refinery stills were curtailed during September and early October in an effort to reduce gasoline stocks, which are excessive for this time of the year. Crude oil production in the· District and the Nation decreased slightly during the first half of October and was only a little above the year-earlier average. Texas allowab/es for November production were increased slightly. The total dollar volume of sales at department stores in the Eleventh Federal Reserve District, after a less than seasonal increase from July to August, declined contraseasonally during September and was only slightly higher than in September a year earlier. The month-to-month decrease was partially accounted for by two fewer trading days in September. The sales index for September, adjusted for seasonal variation and the number of business days, was 140, compared with 134 for the same month in 1955 and 148 in August. Cumulalive sales for the first 9 months of this year were 4 percent higher than in the comparable period of 1955. In the first half of October, department store sales decreased 9 percent from the same period a year ago_ Sales in the soft goods deparbnents in September generally showed moderate increases from a year earlier, while sales in the consumer durable goods departments declined sharply during the month and were at the lowest point since February 1955. Sales in the women's and misses' apparel and accessories departments were up 3 percent and 4 percent, respectively, from a year ago, while sales of men's and boys' wear showed no change. Of selected major soft goods departments, only piece goods and household textiles experienced a marked decline from a year earlier, with sales down 7 percent. Yearto-year declines in the sales of important homefurnishings departments in September ranged from 12 percent for both furniture and floor coverings to 17 percent for housewares. Sales of major household appliances and television sets were 17 percent lower than those of September 1955. Instalment sales at District department stores, reflecting the smaller volume of hard goods sales, were 11 percent lower RETAIL TRADE STATISTICS Nonagricultural employment in the District states during September reached 4,144,300, a record high for the second consecutive month. A seasonal increase in school employment provided the largest gain from August. {Percentage chan;.} NET SALES Uno of trade by area Sept. 1955 Aug. 1956 DEPARTMENT STORES The value of construction contracts awarded in the District during September showed a downturn of 6 percent from August but was a.t the same level as a year earlier. Both residential and "all other" awards were below their levels in the previous month. Totalloans and investments of the District weekly reporting member banks rose sharply between September 19 and Odober 17, primarily because of the $49,156,000 increase in holdings of Treasury bills. Member bank reserves during this period averaged $3,808,000 lower than in August, and free reserves also declined. STOCKS· Sapt. 1956 from Talai Eleventh District • • • ••••••••• Corpus Christi ••••••••••••••••••• Dallas ••••••••••••••••••••••••• fl Paso •• •••••• •• ••• • •••••••• •• Fort Worth ••••••••••••••••••••• Houston •••••••• •••••••••• ••••• San Antonio ••••••••••• •••••••• • Shreveport, La •• • • •••• ••••••••• • Woco ••••••••••••••••••••••••• Other cities ••••••••••••••••••••• FURNITURE STORES TOI(lI Seventh District •• •• •••••• • • Amarillo ••••••••• •••••••••••• •• Aultin •••••••••••••••••••• ••• •• Oglla •••••••••••••••••••••••••• HOU1ton •••••••••••••••••••••• • Lubbock ••••••••••••••••••••••• San Anlonio •••••••••••••••••••• Shreveport, La •••••••••••••••••• Wichita Falls •••••••• • •••••••••• Other cities •• o • • • • • • • • • • • • • • • • • 0 HOUSEHOLD APPLIANCE STORES Total Eleventh Oish"id ••••••• •• • • • Dallas •••••• 0 •••••••••••••••••• 'Slock. at end of month. 1 9 -2 4 2 0 0 0 -1 3 -6 _2 -3 -11 -7 -6 -11 -6 -5 -9 _1 9 _6 -22 10 8 _4 -2 -14 -6 _13 -2 -24 -6 -13 6 -14 -21 25 -10 -8 -18 -14 -21 Sept. 1956 from 9 mo. 1956 compo with 9 mo. 1955 4 8 2 .. 6 6 0 3 5 7 2 Sept. Aug. 1955 1956 3 -2 -A 4 16 5 -5 -1 9 8 4 2 3 8 _1 -3 2 0 .. 4 .. 7 5 -5 11 13 -14 10 14 -6 9 7 -5 D -1 -20 11 -4 7 -4 2 8 170 MONTHLY BUSINESS REVIEW INDEXES OF DEPARTMENT STORE SALES AND STOCKS (1947·49 = Texas Crop Reporting Districts UNADJUSTED At•• SALES-Daily Q¥eroge Eleventh District • . .• .•. ....• Dallas . ••••.••.•..... .. •.• Houston ••••••..••...•••• • STOCKS-End of month Eleventh District •. ... •• .•••• COTTON PRODUCTION 100) lin thouland, of bole.-SOO lb. gross wt., AOJUSTEot Sept. Aug. July Sept. Sept. Aug. July Sept. 1956 1956 1956 1955 1956 1956 1956 1955 Crop reporting district 140 134 ISS 138 126 152 129 120 149 131 149 140 127 152 148 143 162 152 US 170 125 147 163p 158 149 lS9r 154p 159 157 lSOr 134r 134r 1 Adiusled for seasonal variation. r-Revise d. p-PrellmlnClry. in September than in the previous month but were 1 percen t above the same month last year. Charge account sales, although up 1 percent from August, were 3 percent lower than a year ago. Cash sales showed a 9·percent decrease from August but were up slightly from a year earlier. Charge accounts outstanding increased seasonally during September, bringing month·end balances to 6 percent above both August 1956 and September a year ago. Collections during the month amounted to 4,2 percent of first·of·month balances outstanding, or 1 point below the August collection ratio and 3 points below September a year earlier. Instalment accounts outstanding at department stores continued prac· tically unchanged during September and at the month end were 6 percent above a year earlier. The instalment collection ratio, at 14 percent, was the same as a month ago but was 2 points more than in September 1955. Inventories at department stores rose during September; at the end of the month, tl,ey were up 4 percent from a month earlier and 3 percent from the same date last year. Total orders outstanding at the end of September were 4 percent larger than at the close of August but were 3 percent below those at the end of September last year. Furniture store sales in the District during September declined 13 percent from August, or more than seasonally, and were 1 percent under the level of September 1955. Although collections were down 4 percent, accounts receivable at the end of September were unchanged from August and were up 5 percent from a year ago. Inventories at the close of September were 4 percent above both August and a year earlier. 1956 Indicated October 1 I·N........................ '·S. . . .. . . . . . ... . . . . . . . . . .. 2·N........................ 2·5........................ 3... .. ............ . . .. .. .. . 4.......................... 5·N........................ 5·5.. ...................... 6....... ................... 465 1,070 170 90 8 360 85 75 305 8·N. .. ...... . ... .. .. .. .•... 8·5. .. ....... ... .... . ... . .. 9.......................... 10-N ... ... ....•..... . ..... 10·5.. .. . . . ... . . • . . . . • ... . . State. . . . ... . . . . . . . .. . . .. 7........... ............ ... 195~ 80 135 165 50 393 379 1,024 273 264 23 642 145 94 269 33 163 69 238 40 383 512 1.097 221 179 21 447 76 75 261 26 142 217 192 67 407 123 104 62 34 35 56 59 80 113 27 49 196 69 125 103 3,460 4,039 3.940 86 9 SOURCes United States Department of Agriculture. supplies impounded in Falcon Reservoir. Inadequate moisture remains the dominant feature of the agricultural situation in the District, and slow, general rains are needed to replenish subsoil moisture supplies and stock water tanks. The precipitation was especially helpful to early planted winter grains and for germinating grain seeded in dry soils. Hail and rain damaged cotton in some west Texas areas_ Lateplanted feed crops in the eastern part of the District were benefited by the moisture and may provide additional forage before frost. Harvesting of 1956·crop cotton is virtually complete in most of the District except western areas. Pulling of lightyielding dry-land cotton is well advanced in northwestern Texas, and harvest of irrigated cotton is past the halfway mark. Cotton grades in the High Plains have been good during the early part of the season, increasing returns to farmers. Harvesting is at a peak in the irrigated areas of the TransPecos of Texas and in Arizona and New Mexico. The generally dry, open weather and premature opening of bolls resulting from drought have speeded harvest of this year's crop_ Cotton Registration of new car sales during September in Dallas, Fort Worth, Houston, and San Antonio was down 38 percent from a year earlier and 22 percent from August. New car sales in the four cities for the January-September period were 22 percent less than in the same period of 1955. Light to heavy general rains extending from the eastern sections of New Mexico eastward during mid· October provided encouragement to drought·harassed farmers and waterconscious city dwellers. Precipitation generally was heaviest in the west-central, southern, and upper coastal Texas counties, although local areas received rain in cloudburst propor· tions. Runoff in southern Texas slightly increased the water 1956 as percent of 1955 1955 CROP REPORTING DISTRICTS OF TEXAS 171 MONTHLY BUSINESS REVIEW CROP PRODUCTION LIVESTOCK RECEIPTS Texas and Five Southwestern Slates (Number) lin thousands of bUlhels) SAN ANTONIO MARKET FORT WORTH MARKET TEXAS FIVE SOUTHWESTERN STATES' 1956 Class E stimated October 1, 1956 Crop Cotton J • • •• • • • • • Corn • .. •• • •...• W inter wileat •• • o Ools ••.. • •... . • Sarley ••• •• . • • • Rye ••• • •. 0 " •• • Rices •••••• • • ••• Sorghum grain •. • Flo :ueed • • •••.. Hay' .•...•.... • Peanllts5 • • • • •••• Irish potctoesS • •• ~:c~~l~t.~t~~~:.: 3,460 25,528 28,27 5 21,998 2,480 184 10,841 93,480 95 1,541 88,550 1,286 594 27,500 ~m Sept. Estimated Average 1955 4,039 48,288 14,326 23,590 2,072 124 14,880 148,309 96 2, 261 239,235 1,760 1,914 38,000 1945-54 3,518 44,209 50,722 27,090 2,040 244 11,837 82,103 911 1,660 252,600 11,474 11,397 30,565 October '. 1956 5,455 47,483 95,129 39,052 17,023 910 22,185 107,465 147 4,921 140,675 3,155 4,674 53,000 Average 1955 1945-54 6,078 5,256 77,273 41,204 40,518 17,181 691 28,030 175,296 174 6,255 374,055 3,787 7,932 99,460 78,089 131,765 44,837 10,589 822 23,476 97,420 ',293 4,951 366,517 '3,382 16,369 65,595 1 Arizona, Louisiana, New Mexico. Oklahoma, and Texas. 2 In thousands of bales. S In thousands of bags containing 100 pounds each. ~ In thousands of tons. , In thousands of pounds. 15 In tnousands of hundredwe ight. 7 AVerage, 1949· 54. SOURCE; United Stales Oepartment of Agriculture. ginnings prior to October 1 in the District states are estimated to be 41 percent of the prospective crop, compared with 31 percent of the 1955 crop ginned as of the same date a year ago. The 1956 cotton crop in the Nation is estimated, as of October 1, at 13,268,000 bales, or 153,000 bales more than the month-earlier forecast but 10 percent below the outturn in 1955_ The indicated yield of 407 pounds of lint per harvested acre is second only to the 417 pounds harvested a year ago, In the District states, prospective production is placed at 5,455,000 bales, which is 20,000 bales higher than was indicated on September 1 but is 10 percent below production last year, The October 1 estimates place prospective output higher than a month earlier in Arizona and Louisiana but 5,000 bales lower in both New Mexico and Oklahoma. The Texas cotton crop is estimated at 3,4,60,000 balesunchanged from the September 1 indication but 14 percent below the 1955 outturn. Production is below average in all dry-land districts except the Coastal Bend, where the crop made excellent progress during the early part of the season. Above-average output is expected in irrigated districtsespecially in the Trans-Pecos area, where a record crop is being harvested, Indicated lint yield per harvested acre in the State is placed at 266 pounds, compared with 281 pounds for the 1955 crop. 102,862 Cattl ••••••••.•. Calves ••••••..• Hogl ...... . .... Sheep .••....•.• 31,8~7 44,147 84,875 Aug. 1956 112,125 31,076 41,8~0 43,3~1 58,993 104,627 1956 26,263 18,227 3,873 24,312 27,544 3,222 '39, 807 Aug . 1955 1956 21,417 68,832 Sept. Sept. 34,033 126,720 27, 979 4,472 136,159 I Includel goats. fifth below last year, The drought-stricken peanut crop is estimated to be only a third as large as the 1955 production, and hay output is indicated to be a fifth less. Inadequate moisture is curtailing activity in Texas commercial vegetable areas. Light to heavy rains during midOctober were beneficial, but crops are making slow development in much of south Texas, Plantings of fall and early win· ter vegetables in the Laredo, Winter Garden, and Eagle Pass areas are making good progress, Production of commercial fresh vegetables for fall harvest in Texas is estimated, as of October 1, to be 27 percent ahove last year's output. Plantings of all fall-harvested vegetables are lower than a year earlier, except the Panhandle carrot crop. A small volume of citrus fruits is being shipped from the Lower Valley, but the fruit is comparatively small and is sizing slowly, Texas citrus production for the 1956-57 season is forecast, as of October 1, at 3,500,000 boxes of grapefruit and 2,300,000 boxes of oranges, Total citrus output in the State is expected to be 53 percent larger than it was in 195556 and the highest since the 1951 freeze. Fall grazing conditions in District states are at all-time low levels. According to the United States Department of Agriculture, range feed conditions in Texas and Oklahoma on October 1 were the lowest of record - even worse than during the 1934 drought; conditions in New Mexico were equal to the all-time low in 1934; and those in Arizona were the worst since 1924. October rains in scattered areas provided some encouragement, but most ranchers face a severe feed shortage unless sufficient moisture is received to bring out winter weeds and grasses_ Receipts of cattle and calves at major southwestern livestock markets in September were 38 percent larger than during the same month a year earlier; sales of sheep were 45 percent greater. FARM COMMODITY PRICES Harvest of other major field crops in the District is rapidly coming to an end, Combining of grain sorghums is virtually complete in the High Plains of Texas and New Mexico, with yields generally satisfactor y in irrigated areas but poor on dry-land acreages. The output of both corn and grain sorghums in District states is placed, as of October 1, at 39 percent below the oulturn in 1955. In Texas, corn production is estimated at 25,528,000 bushels, or only slightly more than half last year's production and the smallest crop in over 80 years, Unusually low yields and the smallest harvested acreage since 1875 account for the short crop, Harvesting of rice is virtually complete in District states, with the outturn being a Top Prices Paid in Local Southwest Markets Commodity and market COTTON, Middling 15 / 10·inch, Dalla . .... WHEAT, No. I hard, Fort Worth ••• .....• OATS, No.2 white, Fort Worth . • . • .. . ..• CORN, No.2 yellow, Fort Worth . . . •. . . .• SORGHUMS, No.2 yellow, Fort Worth . .•• HOGS, Cnolce, Fort Worth .. .. .•. . .... . • SlAUGHTER STEERS, Cnoice, Fort Worth . •. SLAUGHTER CALVES, Choice, Fort Worth • • STOCKER STEERS, Choice, Fort Worth •. ..• SlAUGHTER SPRING LAMBS, Cnoice, Fort Worth .•. .. •.•.•.. .. •• • • . ...• .. BROILERS, south T.xas ••• •• .. •.• .. •.•... We.1e ended Unit Oct. 22, 1956 lb. bu, bu, bu, $ _3280 2.53Y2 1.02!4 1 .64~ Comparable Comparabl. week, weak, pravioul previous month y.or $ .3275 2.52 25.50 19.00 23.00 20.00 cwl, cwt. cwt. 19.00 19_50 20,00 .18 20.00 .18 cwt. cwt. Ib, 19.00 _3275 2.41 Y, 1.80 2.37 16.75 2.46 16.50 201.00 cw!o $ .85 1,53 2.05 15.50 .95Y, 21.00 19_50 .24 MONTHLY BUSINESS REVIEW 172 The index of prices received by Texas farmers and ranchers at mid·September is placed at 248 percent of the 1910·14 average, reflecting declines of almost 1 percent from a month earlier and nearly 2Yz percent from a year ago, according to the Department of Agriculture. Lower prices received for cotton, cottonseed, peanuts, Irish potatoes, sweet potatoes, some commercial vegetables, beef cattle, and chickens more than offset increases in prices for hay, all grains except sorgo hums, calves, eggs, milk sold at wholesale, and wooL The all· crops index was 243 percent, or 2 percent lower than a month earlier but unchanged from a year ago. The livestock and livestock products index - at 255 percent of the average - rose 1 percent from mid.August but was 5 percent below the level on September 15, 1955. The sharp expansion in loans and investments at Eleventh District weekly reporting member banks be· tween September 19 and October 17 was moderately smaller than in the corresponding period last year, and the composition of the changes was markedly different. This year, the expansion was dominated by an increase of $49,156,000 in holdings of Treasury bills, which was occasioned by the purchase of the special issue of bills dated October 17 by credit to Tax and Loan Account. The net increase of $8,679,000 in loans reo flected the sharp increase in interbank loans (mostly Federal funds) and the more moderate gains in real· estate loans, loans on securities, and "all other" loans, which were only partially offset by the substantial decline in commercial and industrial loans. CONDITION STATISTICS OF WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES Eleventh Federal Reserve District (In thousands of dollars) Item Oct. 17, 1956 Oct. 19, 1955 Sept. 19, 1956 ASSETS Commercial, industria l, and agrieulturalloons ••• $1,518,445 $1,513,515 $1,533,205 1,486,971 1,501,306 Commercial and industrial loansl •••••• •• ••• 31,474 Agriculturol loans l •• •• ••• • ••.••••••• •• ••• 31,899 28,657 16,590 24,359 Loans to brokers and dealers in securities ••.. •• 145,190 118,763 145,380 Other loans for purchasing or carrying securities. 218,221 205,166 214,259 Real-e'tate loans ••.•.••••••••• . •.•..•.•..• 25,832 13,035 8,540 Loans to bonks • • •• ••• ••• . ••••••••••••••••• 579,530 528,539 578,435 AU other loons ••••••• • •••••••••••••••••••• Gross loons •• • ••••• •.•••••••• .. ••••• ••• Leu reserves and unallocated chorge·offs •• 2,5 15,875 35,821 2,395,608 25,226 2,504,178 32,803 Net loans ••••••••••••••••.••••••••••••• 2,480,054 2,370,382 2,471,375 U. S. Treasury bills • •••••• ..••••.•••• ••• •••• U. S. Treasury certiflcates of Indebtedness •••••• U. S. Treasury noles ••••••• • ••.•••••.•...••• U. S. Government bonds [inc. gtd. obligations) •• Other securities • •• •• ••• • •••••••••• •• •• •••• 87,148 70,949 220,303 796,930 24 1,725 39,318 74,143 258,271 834,909 248,547 37,992 76,943 213,024 801,932 237,606 Total investments ••. ••.•• .• ••• ••••••••••• Cash items in process of collection ••.•.• •••••• Balances with banks in the United States ••••••• Balances with banks In foreign countries ••••••• Currency and coin .• ••..•••.••••••• •••••• •• Reserves with Federal Reserve Bank ••••••• •••• O ther assets •• ••• ••••• ••••••••• ••• •••••• •• 1,417,055 442,123 523,437 1,704 47,523 524,651 162,703 1,455,188 379,441 425,810 1,771 47,853 596/2 55 139,886 1,367,497 436,429 518,053 1,347 47,859 567,979 157,924 TOTAL ASSETS ..... . .............. ... 5,599,250 5,416,586 5,568[463 LIABILITIES AND CAPITAL Demand deposits Individuals, partnerships, and corporations .... United States Government •••• • •• •• • . ••••• States and political subdi visions • ••••••••••• 8anks in the United States ................. 8anks in for eign countries ••••••••••••••••• Certifled and officers' checks, etc••••••••••• 2,862,962 127,928 155,435 953,287 19,807 70,307 2,837,590 131,640 180,170 861,131 18,011 66,041 2,838,267 91,911 168,172 953,837 19,285 66,893 Total demand deposils •••• • •••••••••••• 4,189/726 4,094,583 4,138,365 Time deposits Individuals, partnerships, and corporations •••• Unite d States Govemment •••••••••••••••• Poslal savings ••••••••••.••••••••••••••• States and political subdivisions •••••••••••• 80nks in the U. S. ond foreign countries •••••• 724,229 12,240 452 130,745 7,282 698,465 11,874 452 118,431 2,025 72 0,854 12,229 452 133,550 7,185 Toto I lime deposits ••••••••••••• • •••••• In the same period a year earlier, the banks were increasing their earning assets; and the gaius were concentrated in commercial, industrial, and agricultural loans, "all other" loans, and Treasury certificates - the latter reflecting the type of seasonal borrowing effected by the United States Treasury. Moreover, in the third quarter of 1955, bank 874,948 831,247 87.4,270 Total deposits •••••••••••••••••••••• Bills payable, rediscounts, etc ................ Atl other liabililies •• •• •• •• • • • • ••••••••••• •• Tolal capitol accounts •••••••• •• •••••••• ••• • 5,064,674 19,700 83,216 431,660 4,925,830 40,200 61,910 388,646 5,012,635 44,400 85,172 426,256 TOTAL LIABILITIES AND CAPiTAL ••• ••• •• 5,599,250 ~416,586 5,568,463 I Prior to January 4, 1956, agriculturalloanl were 1'101 reported separately. Comparable year-earlier figures will be shown as they become available. credit of the weekly reporting member banks advanced more rapidly than during the same period of 1956. CONDITION STATISTICS OF ALL MEMBER BANKS Eleventh Federal Reserve Di$frict (In millions of dollars) Item Sept. 26, 1956 Sept. 28, 1955 Aug. 29, 1956 ASSETS loans and discounts ••••••••••••••••••••••••••• United Stctes Government obligations •••••••••••• Other securities •••••••• ••• ••• ••• ••••••••••••• Reservet with Federal Reserve Benk •••••• • ••••••• Cash In vault e ••••••••••••••••••••••••••••••• Balances with banks in the United Stales •••••••••• Balances with banks in foreign covntries e ••••••••• Cash items in process of collection ••••••••••••••• Other ouetse •••••••••••••••••••••••••••••••• $3,893 2,312 600 940 109 1, 158 2 506 218 $3,711 2,337 575 945 159 959 2 357 186 $3,881 2,297 596 985 123 966 2 358 220 TOTAL ASSETSe ••••••••••••••••••••••••••• 9,738 9.231 9.428 L1A8Il1TIES AND CAPITAL Demand deposits of banks •••• • •••• ••• •• ••••••• Other demand deposits •••••••• • •••••••• ••••••• Time deposits • •• ••••••••••••••••• • •• • •• •• •• •• 1,179 6,309 1,388 981 6,186 1,292 1.003 6,195 1,387 Total deposits • ••••••••••••• ••••••••• • ••••• Borrowing s e • ••• •• ••••••••• •• •••••• •• • •••••• • Other liabilitiese ••••••••••••••••••••••••••••• Total capitol accountse •••••••••••••••••••••••• 8,876 28 101 733 8,459 34 71 667 8,585 17 96 730 TOTAL LIABILITIES AND CAPITAle •••••••••••• 9,738 9,231 9,428 a-Estimated. Between September 19 and October 17, all but a minor part of the $52,039,000 deposit increase was channeled through demand deposit accounts. United States Government demand balances showed the largest growth, as the banks credited the United States Government with the proceeds of the special Treasury bill awards. The balances of individuals and businesses also were replcnished, but state and local governments claimed part of their checking account balances. During the recent 4-week period, the weekly reporting memo ber banks repaid $24,700,000 of indebtedness. In the 4-week period ended October 17, Eleventh District member banks experienced a reserve drain of $58,273,000. Commercial and financial transactions led to an outAow to other districts of $102,550,000 in reserve balances. Local Federal Reserve credit - float and member bank borrowing - contracted by $24,430,000, and the flow of currency into circulation absorbed an additional $10,766,000 of reserve 173 MONTHLY BUSINESS REVIEW CHANGES IN fACTORS AFFECTING MEMBER BANK RESERVE BALANCES RESERVE POSITIONS OF MEMBER BANKS Eleventh Federal Reserve District Eleventh Federal Reserve District (In thousands of dollars) (A'f'oraijlts of dolly Aijure •• In thousands of dollars) CHANGEI ... weeks end.d Oct. 17, 1956 -$ 24,430 102,5 50 + 79,334 10,766 39 + 178 +$ 11,045 - 913,457 + 837,573 + 29,930 50 + 12,349 -$ 58,273 -$ 22,510 FACTORS Fede ral Roserve credit-local ••••••••••••. .•.• .• Interdistrict commercial and flnancial transac tions •• • Treosury operations ••••••••••••••••••••• • ••• • • Currency transactions •••••• •• •.••••••••••••••.• Other deposits at Federal Reserve Bank •••• .. ••.• Other Federal Reserve accounts • . •••• . ••• ...• • .• RESERVE BALANCES September 19, 1956 •• • • • ...•.. October 17, 1956 •••..........• + 5982,823 $92.11,550 1 Sign of chonge indicates effect on resene balances. funds. Treasury transfers, the leading expansive factor duro ing the period, released $79,334,000 in reserve balances. Daily average gross demand and time dcposits at all memo ber banks in the District rose in September. At $7,388,. 782,000, the average of gross demand deposits reflected a monthly increase of $178,339,000, about three· fifths of which occurred at reserve city banks, and an increase of $193,· 203,000 over the year-earlier level. Daily average time de. posits registered a monthly gain of $7,439,000 in September and an increase of $117,688,000 over the average for Sep. tember 1955. Nearly all of the August·September increase in time deposits occ urred at country banks, Membcr bank reserves averaged $1,008,252,000 in Sep. tember, Or 3,808,000 below the August average. Required reserves rose $7,297,000, however, and the combination of larger required balances and the loss of reserve funds pro· duced an $11,105,000 decline in excess reserves, Member bank borrowings from the Federal Reserve bank declined , and average free reserves (excess reserves minus borrowings from the Federal Reserve bank) decreased to $40,937,000, or $4,187,000 below August, The loss of reserve funds , decline in excess reserves, and reduction in free reserves during September occurred entirely at COWl try banks, as the reserve positions of reserve city banks showed a slight improvement. At these banks, a $3,623,000 monthly gain in reserve funds more than covered the smaller increase in required reserves, and average excess reserves rose 897,000. As reserve city banks reduced their borrowings from the Federal Reserve bank by $6,072,000, their net borrowed reserves declined from $8,977,000 in August to $2,008,000 in September, In contrast, free reo GROSS DEMAND AND TIME DEPOSITS Of MEMBER BANKS Eleventh Federal Reserve District (Averages of daily figures . In thousands of dollors) COMBINED TOTAL Gross Dote d ema nd Time RESERVE CITY BANKS Gross demand Item September 1956 September 1955 Augult 1956 RESERVE CITY BANKS Reserve balances ••••••••••••••••• Required reserves •••• • • ••• •••• ••• Excess reser'f'es ••••••• •• •••• • •••• Borrowings •. • ••••••••••••••••••• Free reserves ••••••••••••••••• , •• $ 564,133 551,721 12,412 14,420 -2,008 $556,992 545,790 11,202 26,576 -15,374 $ 560,510 548,995 11,515 20,492 -8,977 444,119 395,818 48,301 5,356 42,945 435,508 388,399 47,109 11,813 35,296 451,550 391,247 60,303 6,202 54,101 1,008,252 947,539 60,713 19,776 40,937 992,500 934,189 58,311 38,389 19,922 1,012,060 940,242 71,818 26,694 45,124 Dec. 28, 1955Od. 17, 1956 Time COUNTRY BANKS Gross demand Time Sept. 1954...• $7,086,193 $1,081,850 $3,499,932 S600,926 $3,586,261 $480,924 Sept. 1955 . ••• 7,195,579 1,271,089 3,517,182 748,666 3,678,397 522,423 May 1956 • • • • 7,132,519 1,363,058 3,454,927 766,439 3,677,592 596,619 June 1956 ... . 7,150,377 1,369,915 3,493 ,663 767,137 3,656,714 602,778 July 1956 •••• 7,271,859 1,380,093 3,579,411 770,067 3,692,448 610,026 Aug. 1956 •••• 7,210,443 1,381,338 3,529,320 764,016 3,681,123 617,312 Sept. 1956.... 7,388,782 1,388,777 3,641,972 764,478 3.746,81 0 624,299 COUNTRY BANKS Reser'f'e balances •••••••••••••••• • Required reSer'f'8s •••••••••••••••• Excess reser'f'es ••••••• • •• ••.• ••• • Borrowings • ••••••••••••••••••••• Free reser'f'es •• ••• •••• ••••••••••• MEMBER BANKS Reserve balances ••••••••••••••••• Required reserves ••• ••• • ••• ••• ••• Excess reserves •••••• •••••••••••• Borrowings •••••••••••••••••••••• Fr•• r.serves •••••••••••••••••••• serves of country banks decreased from $54,101,000 August to $42,945,000 in September. III Earning assets of the Federal Reserve Bank of Dallas increased $5,298,000 during the 4 weeks ended October 17. This increase featured a $10,888,000 addition to the bank's holdings of Government securities, partially offset by a decline of $5,590,000 in discounts for member banks, On October 17, earning assets were $44,406,000 below the level of October 19, 1955. Gold certificate reserves declined $12,954,000 during the 4 weeks to a total of $720,217,000, or $8,805,000 below the amount on October 19 last year_ At BANK DEBITS, END-Of-MONTH DEPOSITS AND ANNUAL RATE Of TURNOVER Of DEPOSITS (Amounts In thousands of dollars) OEPOSIT5s OEIIITS l Percentage change from Area September 1956 ARIZONA Tucson ...... ........ $ 139,237 LOUISIANA 64,292 Monroe •• •••••••• ••• 245,389 Shreveport • ••••••••• NEW MEXICO Roswell ••••••••••••• 26,185 Annual rat. of turnover Sept. Aug. 1955 1956 Sept.30, 1956 Sept. Sept. A ... 1956 1955 1956 98,850 17.0 16.7 18.2 2 -1 50,543 186,576 15.7 15.8 16.4 15.6 15.6 15.8 -2 -1 26,378 11,9 12.2 11.9 70,664 144,501 147,643 134,025 172,440 16,580 1,902,607 215,851 628,221 85,128 2,109,105 20,834 120,317 51,798 ,U,443 431,662 18,733 74,659 84,405 91,513 5 -8 6 7 10 -5 -3 -3 6 6 7 6 -5 _4 0 -7 0 3 -4 -6 -5 -12 0 -3 -6 11 -7 -13 -8 -22 -7 _2 3 -12 -1 -13 -1 -1 -5 -8 58,306 104,856 112,343 102,423 109,644 21,735 993,328 132,787 372,319 73,696 1,233,974 18,972 89,165 43,967 45,900 341,405 16,459 58,428 65,173 103,459 14.6 16.7 15.7 15.6 18.8 9.2 23.3 19.9 20.3 13.9 20.6 13.3 16.6 14.0 11.6 15.0 13.4 15.5 15.6 10.7 13.7 17.6 14.3 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 15.5 18.8 15.6 15.8 20.2 8.5 25.6 23.2 22.0 18.6 22.3 13.6 16.3 16.0 11.9 17.0 13.6 15.5 16.6 11.6 Tolal-24 cities ••.••.• • $7,040,232 2 -7 $4,460,686 19.0 18.8 20.6 TEXAS Abilen •••••••• • • •••• Amarillo ••••• • •••••• Austin •••••• ••••• •• • Beaumont ••• •• •••••• CorpU$ Christi •••••••• Corsicana ••••••••••• Dallal • •••••• • •••••• B Paso • ••• ••••••••• Fort Worth •••••• •••• Galveston • •••.••••• • Houston • •••.•. •.••• Loredo ••••••••••••• Lubbock ••••••.•.••• Port Arthur • •• •••• .•• Sen Angelo ••••••••• Scln Antonio ••••• ..•• Texarkana ' ••••••.•• Tyler ..... ..... ..... Waco ••••. ••••••••• Wiehita Falls •••••• . • 6 -8 8 2 $ ~ 1 De bits to demand deposit oCtounts of individuals, partnerships, and corporations and of slates and political subdi"';sions. : Demond deposit accounts of individua ls, partnerships, and corporations aod of states and politica l subdivision$. ~ These Agures include only one bonk in T.xarkana, Texas. Total debits for all bonks In Texarkano, Texas-Arkansas, Including two bonks located In the Eighth District, amounted to $40,048,000 for the month of September 1956. 174 MONTHLY BUSINESS REVIEW CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS CRUDE OIL, DAILY AVERAGE PRODUCTION (In thousands of dollars) (In thousands of barrels) Oct. 17, 1956 Item Oct. 19, 1955 Sept. 19, Change from 1956 September September Total gold certificate reservos., •••.•.......• Discounts for member banks •••..•.••.••••.• Other discounts and advances •••••• •.••.•.• U. S. Government securities •••..••. .....••.• Totol earning assets •••••.................• Member bank reserve deposits .•••. ...•••..• $720,217 10,361 $ 729,022 948,289 958,650 924,550 Federal Reserve notes In actual circulation ••••• 718,.531 627 961,274 1,003,056 991,626 718,OU o 41,155 $733,171 15,951 o 937,401 953,352 982,823 710,049 $718,531,000 on October 17, the bank's Federal Reserve notes in actual circulation reflected an increase of $8,482,000 during the 4·week period and an increase of $517,000 over a year earlier. Primarily because of the smaller number of business days in September, bank debits declined in 20 of the District's 24 reporting centers. For all 24 centers, bank debits in September were 7 percent below August but 2 percent above the level of September 1955. The annual rate of deposit turnover in September was 19.0, compared with 20.6 in August and 18.8 in September 1955. NEW MEMBER BANK The KeUy Field National Bank of San Antonio, San Antonio, Texas, a newly organized institution located in the territory served by the San Antonio Branch of the Federal Reserve Bank of Dallas, opened for busi. ness October 15, 1956, as a member of the Federal Reserve System. The new bank has capital of $300,000, surplus of $200,000, and undivided profits of $100,· 000. The officers are: B. B. McGimsey, President; Wm. F. Holder, Executive Vice President; and Wm. I. Bowman, Cashier. The Nation's petroleum industry successively cut back refinery ac· tivity during the latter part of Sep. tember and early October to prevent a further build·up of gasoline stocks. However, such reductions in refinery activity were not sufficient to allow a reduction in gasoline stocks because of the need for enlarging fuel oil inventories. Gasoline stocks, much above last year, are considered excessive by industry sources and have exerted pressure on gasoline prices in many areas. Crude oil production in the District, averaging 3,291,000 barrels per day, decreased slightly during the first half of October but was 1 percent greater than a year ago. Texas allowables for Novemher production were increased 72,986 barrels per day, although the number of producing days remains at 15. Crude oil production in the Nation during early October, at 7,003,000 barrels per day, was 1 percent below September but 3 percent above the average of a year earlier. Area ELEVENTH DISTRICT •••••••• Tellos .................. Gulf Coast ............ West Texas ........... East Tex.as (proper} .. . .. Panhandle ••.•......•• Rest of Siale .... .....• Southeastern New Mexico .• Northem Loui.uana ..•••.. • OUTSIDE ElEV~TH DISTRICT. UNITED STATES ••••.•....•. August September 1955 1956 1 1955' 1956 1 3,318.9 2,959.6 5917 1,224.5 202.1 100.8 840.6 237.9 121.4 3,727.4 7,046.3 3,128.9 2,785.9 601.2 1,073.6 210.0 93.7 807.4 219.6 123.4 3,601.7 6,730.6 3.379.1 3,025.6 611.9 1,254.0 210.5 100.0 849.2 231.1 122.4 3,727.1 7,106.2 190.0 173.7 -9.5 150.9 -7.9 7.1 33.2 18.3 -2.0 125.7 3157 August 1956 -60.2 -66.0 -20.2 -29.5 -8.4 .8 -8.6 6.8 -1.0 .3 -59.9 SOURCES, 1 Estimated from American Petroleum Institute weekly reports. :I United States Bureau of Mines. Imports in the 5 weeks ended October 12 averaged 1,421,. 000 barrels per day, or 6 percent above the previous 5·week period and 26 percent above the comparable period of 1955. Reflecting the previously announced pl~ns of major oil companies, crude runs to refinery stills were cut back during the latter part of September and early October. District crude runs, at 2,189,000 barrels per day in the first half of October, were 6 percent below September and only 1 per· cent above the average for October 1955. Refinery crude runs in the Nation, at 7,581,000 barrels per day, were also 6 percent below September but were 2 percent above October last year. Crude stocks remained virtually unchanged during early October but, at 279,458,000 barrels on October 13, were 10 percent greater than a year earlier. Because of the cutback in refinery activity and the increase in demand, stocks of the maj or refined products remained virtually unchanged during early October and did not show the usual seasonal increase. Stocks of these products totaled 408,174,000 bar· rels on October 12, or 6 percent above the level on October 14, 1955. Gasoline stocks, totaling 174,062,000 barrels on October 12, were 23,582,000 barrels- or 16 percent- above a year earlier. Residual fuel oil stocks were virtually un· changed from a year ago, while distillate fuel oil stocks were 3 percent larger. The demand for the four major products from the begin. ning of 1956 to October 12 was 6 percent above the com· parable period last year. The summer decline in demand, in· duced largely by the steel strike, was reversed sharply during September and early October. The demand for the major products during the 5 weeks ended October 12 was 6 percent above the previous 5·week period and 8 percent above the comparable period a year ago. Reflecting the end of the summer driving season, the demand for gasoline was 3 per· cent below the previous 5·week period but was 4 percent above the corresponding period of 1955. Influenced by cool weather in the northern consuming area, the demand for dis. tillaLe fuel oil was 29 percent above the preceding 5·week period and 21 percent above the year.earlier period. The demand for residual fuel oil was up 4 percent from the pre· vious period and 1 percent from the comparable period last year. MONTHLY BUSINESS REVIEW Nonagricultural employment in District states during September reached a record level for the second consecutive month. The total of 4,144,300 workers during September rcflected gains of 32,900 from August and 135,100 from a year earlier. The largest month·to·month gain was the addition of 27,800 employees in government, with school employment accounting for most of the increase. Wholesale and retail trade showed a seasonal gain of 8,300. NONAGRICULTURAL EMPLOYMENT Five Southwestern States 1 Percent change Number of persons Sept. 1956 from Sef~$6~er September 1955r August 1956 wage and solary workers .• 4,144,300 4,009,200 745,900 3,263,300 249,700 287,100 4,111 ,400 765,700 3,345,700 262,800 402,900 1,027,800 166,600 466.6 0 0 662,600 Type of employ ment Sept. Aug. 1955 1956 299.~OO 3.4 3.0 3.5 3.4 4.5 0.8 .3 .9 -1.7 .2 403,500 1,053,300 176,500 480,100 670,100 - .1 3.3 5.4 3.0 5.3 -.2 .8 _.5 .1 4.1 Total nonagricultura I 767,800 3,376,500 Mining . • ......• • . • . •• 258,300 Construction .. .. ... . .. . 300,000 Manufacturing • • .••• ••• •• Nonmanufacturing ••.••• •• Transportation and public utilities •••••••••.••• 402,600 Trade ........ . ..... .• 1,061,600 Finance .. • .. . . .... . .. . 175,600 Servite . . ... . ......... 480,500 Government ...... . .. . . 697,900 I Ari~ona. louisiana, New Mexico, Oklahoma, and Texas. e-Estlmated. r-Revised. SOURCES: State employment agenties. Federal Reserve Bank of Dallas. Manufacturing employment increased 2,100 over August to a record high of 767,800 workers during September. The settlement of labor-management disputes in the aluminum industry and hirings in the transportation equipment, chemi· cals, and apparel industries offset the effects of a 2-week labor.management dispute which idled more than 3,000 workers in the District steel industry during mid-September. Construction employment showed little change from the August level. Unemployment in the District declined dnring September as students and teachers withdrew from the ranks of those seeking employment. In Texas, unemployment decreased from 110,200 in August to 107,500 in September. Average earnings of manufacturing workers in the Dis· trict states during August, at $79.94 per week and $1.94 per hour, reflected year-to· year gains of 6 perccnt and 8 percent, respectively. Wage increases granted in several important District industri es during August and September foreshadow further increases in average earnings. In the Nation, average 175 BUILDING PERMITS 9 months 1956 Percentage change in valuation from Percentage change in valuation from 9 months September 1956 Area Number ARIZONA Tucson .••..•. • 282 $ Valuation 962,675 Aug. 1956 Number Sept. 1955 1955 Valuation 3,604 $ 17,465,796 86 -3. 3,940 20,931,296 -28 1,010,948 -30 -32 1,.456,292 -17 -2 5,252,603 80 69 1,813,213 72 18 958,651 -43 -4 10,719,542 -24 38 1,914,825 -25 -7 3,687,815 -10 -39 738,195 34 345 11,364.100 26 -19 1,703,315 -10 0 547,850 -7 21 3,628,220 -21 -32 2,322,518 122 159 53.4,459 -68 -13 1,594 2,050 18,180,428 15,592,850 36,309,070 78 -65 LOU1S1ANA Shreveport .... 398 TEXAS Abilene. , • • , .. 110 Amarillo . . . .. . 196 Austin . .. . . .. . 251 Beaumont .. . . . 343 Corpus ChrIstl .. 324 Dallas •... .. . • 1,993 EI Paso •. . .... 361 Fori Worth .... 538 GalveJton • •.• . 104 Houston . .... • 708 lubbock • . . . .. 174 Port Arthur •... 187 San Antonia .•. 1,420 310 Waco .......• Wichita Falls. , 129 1,375,810 -31 Talal-17 cities .. 7.828 $49,991,031 _5 -3 2,696 1,310 48,523,881 13,089,668 7,258,393 19 _13 15 57 -38 -15 -22 -23 -3 6 -23 -4 7 8 -31 79,379 $522,846,209 _6 2,376 2,478 3,030 18,875 3,659 5,938 887 8,104 2,042 1,642 11,392,512 15,355,700 117,427,631 21,105,952 34,490,030 4,025,645 120,439,221 17,322,588 3,935,548 15.154 earnings rose from $79.79 per week and $1.98 per hour during August to reach a weekly rate of $81 and a record hourly rate of $2 during September, The value of construction contracts awarded in the District during September showed a downturn of 6 percent from the improved August level but was at the same level as in September 1955. Both residential and "all other" awards decreased from August; while residential awards were above the level of September 1955, "all other" awards were down 4 percent from a year earlier. In the Nation, construction contract awards during September declined 2 percent from August and were 1 percent below the level in September last year. However, in both the District and the Nation, cumulative construction awards during the first 9 months of 1956 remained well above the totals for the corresponding period of last year. Investment in plant facilities by District businesses declined during the third quarter, based on decreases in the value of construction awards for manufacturing and commercial buildings in Texas. At an estimated total of $73, 268,000, these awards during the 3 months ended September 30, 1956, reflected a decline of 21 percent from both the previous quarter and the corresponding period in 1955. DOMEST1C CONSUMPTION AND STOCKS OF COTTON IBaiesl VALUE OF CONSTRUCTION CONTRACTS AWARDED Area (In thousands of dollars) August 1956 1 August 1955 July 1956' 10,389 686,276 11,356 717,115 9,034 549,520 519 34,313 568 35,313 452 27,476 797,238 12,312,831 1,211,562 9,764,505 902,890 12,845,734 CONSUMPT10N January-September September Area and ty pe September 1956 1955 ELEVENTH DISTRICT ... $ 148,725 $ 148,962 Residentia l. . . . . . . . 54,663 51,188 I All athe r.. . . . . . . . . 94,062 97,774 UNITED STATES I.. . .. 2.0 24,794 2,034,895 Resid ential . .. . . . . . 76 3,817 733,382 All othe r.. .. ...... 1, 260,9 7 7 1,301 , 513 I 37 stot os eost of the Rocky Mountains. SOURCE; F. W. Dod;e Corporation. August 1956 1956 1955 Total Texas mills ........ . . , ... . ... . . U. S. mills •. . .. . . ... . . .. .. ... . . Dally average 158,593 $ 1,517,927 $ 1,332,181 62,80 9 627,219 580,156 95,784 890,708 752.025 2,068,754 19,441,066 8,09',637 11,346,429 18,165,044 7,965,550 10,199,494 874.233 1, 194.521 Texas mills ... .. ...... . .•..... . U. S. mills ......... . .•...... . . • STOCKS, U. S.-End of period Consuming establishments . . ...... . . Publit storoge and compresses •..... 1 Four weeks ended August 25. , Four weeks ended July 28. SOURCE: United Stotes Bureau of the Census.