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BUSINESS REVIEW NOVEMBER 1959 Vol. 44, No. 11 SOURCES AND GROWTH OF AGRICULTURAL CREDIT Today's commercial farlner and rancher and "Old MacDonald" of folk song fame have little in common, except perhaps a fascination for growing crops and animals . The caricature of the farmer as a slow-speaking, provincial hayseed has been as much a casualty of the changing agricultural scene as has Dobbin. Farmers and ranchers are hard-working businessmen, whose primary jobs are combining and managing resources, including the important task of using capital resources efficiently. Both the total amount loaned and the average size of l0an per farm have grown steadily during the past several years . Among the major factors contributing to the increased use of credit have been the enlargement in the size of farms and ranches and the mechanization of crop and livestock production . With the commercialization and specialization of agriculture, more capital is needed for the larger quantities of farm production goods which are now purchased from off-farm sources. Total outof-pocket costs for fertilizers, insecticides, gasoline, and other supplies have risen significantly. Also, the changing structure of farm costs and prices, both from shifting consumer tastes and from alterations in governmental programs, has made it necessary for farmers to increase borrowings in order to make adjustments in farming operations. Credit agencies were among the first to feel the impact of the development occurring within agriculture. Lenders found that larger and larger lines of credit were necessary; and, in many cases, new concepts with respect to repayment and other terms have been FEDE AL RESERVE DALLAS, BANK OF DALLAS TEXAS This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) PRICES PAID BY FARMERS UNITED STATES :~~E!!._-,-_,.-_,--_(...,I - ~_··TIO_OI_,----'_--'-_-"i'Hr~~ X ·_4T_ 1401 - - I - - - t - - ' - - - L . . . . . --'--- i - - j -- t " / --j 120f----!- - / - - - , - - , - -, / 1001-- - - ' - - - ' - - - + -.....(F'.;.,;,.::.;y-- i - - j - - j - --j 100 80 SOURC E ' U, S, Deport me nt 01 A'ilr lc ultun . formulated. As farming and ranching became more scientific and businesslike, agricultural lending practices became more methodical. This article presents the broad trends and developments with respect to agricultural credit in the Southwest and is the foundation for a series of articles on credit in the ranching and grain sorghum and cotton farming segments of the industry. These subsequent articles will discuss the important financial and production developments and problems in the individual types of agriculture. The problems of agricultural credit during much of the 1930's were largely depression-centered; and during this period, several new governmentally sponsored credit agencies were created to supplement credit available from existing sources. During WorId War II and the immediate postwar years, agricultural credit problems diminished. The relatively high wartime agricultural incomes - plus shortages of machinery, equipment, building materials, and durable household goods - reduced credit demands of farmers and ranchers. In recent years, however, declining farm product prices and rising production costs have lowered farm and ranch incomes, and efforts to adjust to these new circumstances have made agricultural credit considerations more important. Narrow profit margins, together with the ever-present weather risks, are likely to be relatively permanent features of southwestern agriculture. The changes that occurred in farm prices, costs, and income during the past decade have pointed up some of the difficulties faced by southwestern agriculture and the need for credit to make sound adjustments. Prices I BUSINESS REVIEW received by southwestern farmers and ranchers for farm products, as evidenced by Texas midmonth farm product prices, during 1954-58 averaged 15 percent below prices received in the 1949-53 period. At the same time, prices paid by the Nation's farmers for production items, interest, taxes, and wage rates (no precise over-all measure of southwestern farm production costs is available) during the recent 5-year period averaged 4 percent higher than in 1949-53. The realized gross farm income of southwestern farmers and ranchers during the past 5 years was 5 percent below that in the 1949-53 period, and realized net income was almost one-fourth smaller. The slight gain in agricultural output and an almost threefold increase in Government payments were insufficient to offset lower prices and an 8-percent average rise in total production expenses. On a per farm basis, net realized income during the 1954-58 period averaged 15 percent less than in 1949-53. In an effort to improve their incomes, farmers and ranchers have concentrated on increasing production while decreasing total and per unit costs . These income-boosting efforts have taken various forms, such as (1) enlarging the size of the farming unit; (2) working existing land more intensively by double cropping, irrigating, fertilizing, and similar measures; and (3) mechanizing farm and ranch operations. In most instances, all three of these general methods have been used in varying degrees. Practically without exception, the use of anyone of these methods would entail additional capital. IN CO ME OF FAR M OPERATORS FIVE SOUTHWESTERN STATES o 1949 . · In clud ln; Goy.,nm,nl poyment , . SOURCE ' U, S. Department 01 Aorlcullun . 1 953 1954 1955 1956 1957 0 1958 Farm Mortgage Debt Rises ana. Commercial banks in Louisiana were quite important lenders on farm property, providing 18 perEnlarging the size of the farm business by adding acreage has been a widely used method to boost in- cent of the State's total; in New Mexico, banks come, but, by so doing, capital requirements have been accounted for slightly less than 4 percent of the farm increased sharply. Farm mortgage debt outstanding in real-estate mortgage holdings. Individuals and other the District states as of January 1, 1959, totaled almost miscellaneous lenders held nearly one-half of the real$1.4 billion, or more than double the outstanding in- estate debt in Arizona, compared with 28 percent in debtedness in 1950 but only one-fourth more than in Texas. Federal land bank holdings were more than 1930. The trend in southwestern farm real-estate in- twice as important in Texas as in Arizona. debtedness has exhibited something of a roller coaster The variation in the proportion of mortgage debt effect during the past three decades. Farm indebtedness held by major lenders results from several factors. declined steadily from about $1.1 billion in 1930 to Limits on loan amounts hamper some institutional $520 million in 1946. Thereafter, southwestern farm lenders in the handling of large loans. Also, some instireal-estate indebtedness turned upward and has con- tutional lenders may operate more intensively in certinued to increase each year, paralleling trends in the tain areas than in others because of custom, familiarity, Nation. or other reasons. Commercial bank participation from Life insurance companies and Federal land banks state to state is influenced by state laws and regulations. are the principal institutional lenders on farm real In Louisiana, for example, real estate is used somewhat estate in the Southwest, accounting for almost 35 per- more extensively as security for production-type loans cent and 23 percent, respectively, of the total outstand- than in other District states because of some unusual ing farm mortgage debt at the beginning of this year. features of its laws. Commercial banks held 7 percent of the total, and the Since farm mortgages are long-term investment inFarmers Home Administration accounted for 4 per- struments, insurance companies and the Federal land cent. Other lenders, primarily individuals, held the bal- banks serve this credit need particularly well. Insurance - approximately 30 percent - of the farm anc~ co~panies are interested in investing premium real-estate debt. receIpts In a profitable manner, and land banks provide t~e means .through which the public can purchase The proportion of the farm mortgage debt held by various lenders fluctuates considerably between indi- hIgh-grade Investments, the proceeds from which are vidual states. In early 1959, life insurance companies then invested in farm mortgages. Commercial banks held 42 percent of the indebtedness in New Mexico but are not as well suited to investing in long-term farm only 17 percent of the outstanding farm debt in Louisi- mortgages, since deposits are subject to unpredictable withdrawals and liquidity is a major consideration; moreover, legislation prevents banks from participating extensively in lending on real estate. FARM MORTGAGE DEBT, BY LENDER GROUPS FIVE SOUTHWESTERN STATES MILLIONS OF o FARMERS HOME AOMINISTRATION G:;J COMMERCIAL BANKS g OTHERS SOUFtCE , U, S . Deparlmlnl 01 Agrlcultur • . Individual lenders constitute an outstanding source of credit for farm real-estate purchases; in many instances, they provide the means by which young farmers start on the road to farmownership. Many of the individuals furnishing credit are relatives of the borrowers. For example, many sons purchase farms through arrangements with their fathers. Retiring farmers often hold the mortgages on the farms they previously worked and use the payments as retirement income. In most communities, there are a few individuals who are willing to finance the purchase of land for the interest income. High costs of land limit the ability of some farmers to enlarge the size of the farming operations in order to achieve economies of scale. Farm land costs in the BUSINESS REVIEW I Southwest have trended upward since the early 1930's; and in March 1959, prices were 267 percent above the depression low and were two-thirds higher than just a decade earlier. Land prices reflect many factors, some of which are economic while others have noneconomic bases. Purchase of additional land by farmers to add to existing units has been a major influence in the land market. Industrialization and suburbanization have created an upward pressure on the price of land, as have leasing and royalties from mineral production. The fear of inflation has prompted some farmers and nonfarmers alike to invest in farm real estate; and, in many instances, the charm of owning a farm or ranch has induced many nonfarmers to enter the land market. Some farmers feel that current asking prices are too high in relation to expected future returns from the land. Low net worth, poor managerial ability, or other factors place many farmers in a weak bargaining position. The orderly transfer of landownership to others, especially to young and capable farmers who have limited financial resources, is a major problem facing agricultural credit institutions. The increased use of the sales contract in the purchase of farm land has been a significant development in facilitating the transfer of landownership. This type of sale arrangement may become an increasingly important means by which capable but impecunious young farmers may gain control of land resources. Individual sellers of land may find that the sales contract offers important tax advantages, as well as a means of obtaining investment income. For the purchaser, a sales contract often provides an opportunity to buy farm or ranch property with considerably less down payment than is required by conventional institutional lenders. Nonreal-Estate Loans Rise The assumption of a sizable long-term debt, such as might be involved in land purchase, probably is one of the most important financial decisions made by many farmers and ranchers during a lifetime. However, the regularity with which farmers borrow for short-term purposes makes this type of credit almost as significant as the tractor to the farm business. Much of this shortterm credit is secured by liens on growing crops, livestock, machinery, and equipment and, most important, depends upon the integrity and ability of the borrower. Recognition of the problems involved has resulted in changes and some liberalization of regulations governing lending on farm real estate. Recent regulations permit national banks to make real-estate loans in amounts up to 75 percent of the appraised value for a period not to exceed 20 years. Previously, national banks were limited to lending an amount equal to twothirds of the appraised value. Outstanding nonreal-estate loans of southwestern farmers and ranchers held by principal lending institutions totaled more than $810 million at the beginning of 1959. An indebtedness of this magnitude is 86 percent greater than in 1950 and is more than three times larger than in 1940. The total short-term indebtedness to farmers is understated, since much of the short-term The Federal Farm Credit Board recently approved changes in the standards used by Federal land bank appraisers in determining the normal values. As a result, a general upward adjustment was made in the levels of normal prices of farm products and normal operating costs in order to provide more realistic benchmarks for determining the normal value of farm real estate. Although land banks cannot make a loan in excess of 65 percent of the normal agricultural value of the property, new legislation effective at the beginning of 1960 will permit land banks to include in the loan an additional amount which will cover the borrower's required purchase of stock equal to 5 percent of the value of the loan. In addition, the $200,000 individual loan size limitation was removed to enable Federal land banks to accommodate larger loan requests. NONREAL-ESTATE LOANS TO FARMERS I BUSINESS REVIEW FIVE SOUTHWESTERN STATES SOURCE : U,S. Deportment 01 Aorlcullur • • credit is repaid before the end of the year. and merchant, or trade, credit is not included. An Ind1ana study made in 1954 shows that approximately 38 percent of the amount spent on production items by. farmers was financed by some type of merchant credIt, ~ompare? with ] 5 percent by both banks and productIon credIt associations. Commercial banks are the primary source of institutional short-term agricultural credit in the District states, accounting for almost two-thirds of such credit outstanding at the beginning ~f 1959. The b.alance of the institutional credit is provIded by agencIes of the Farm Credit Administration , especially production credit associations, and by the Farmers Home Administration. PCA's, together with the Federal intermediate credit banks, held almost one-fourth of the outstanding nonreal-estate debt a~ ~he ~eginning of th~s year. The Farmers Home Adm1l11stratlOn .had approxImately J 2 percent of the nonreal-estate 1I1debtedness. Bank credit outstanding accounted for 87 percent of the nonreal-estate debt of farmers in Arizona on January ], 1959, but only 48 percent of the total in L?ui~i ana - the lowest proportion of any of the. 1?lSt~lCt states. This relatively smaller amount of partlClpatlOn by Louisiana banks probably reflects the increased ~ro portion of real estate-secured loans mentioned earhe!·. PCA's and FICB's were the least important lenders 111 Arizona (providing about one-tenth of the total) but accounted for' more than one-third of the nonreal-estate debt in Louisiana and almost one-fourth of the outstanding short-term debt in both New Mexico and Texas. Production and subsistence loans of the Farmers Home Administration were of the greatest importance in Louisiana and of the least significance in Arizona. One of the major trends during the past decade has been the decline in the proportion of nonreal-estate credit extended directly to southwestern farmers by commercial banks and the gain in the percentage made by PCA's and FICB's. In the early 1950's, banks provided approximately 70 percent of the nonreal-estate credit contrasted with around 65 percent currently. On the other hand , the PCA's and FICB's increased their proportion from about 18 percent of the total ~o almost 23 percent. Most of this gain has. o?curr~d 1!1 the past 2 years. The Farmers Home AdmJll1st~'atlOnIS furnishing a somewhat smaller amount under Its regular programs than earlier, although loans advanced under special emergency drought-related programs FARM DEBT OUTSTANDING, BY MATURITY, JUNE 30, 1956 Eleventh Fed eral Reserve District (Percentag e di s.tr ibution) Other nonreal - Current Interm e diat e· term M aturit yl ex penses inv estm e nt estat e purposes Demond . .. ....... . ... .•.•. . 6 4 41 29 20 3 45 35 10 1 - 6 months . ............. .. 9 months - 1 yeor .. ....... • . . 15 month s - 5 years . ......•.. Ov er 5 years .•. .... .. .... •.. 52 40 2 0 All maturities . ............. 100 Purcha se of farm rea l estate 7 9 6 7 22 20 42 100 100 100 ] loans were classified under th e nearest maturity li sted. were particularly significant during the mid-1950's. Subsequently, emergency loans have declined 111 importance. The problem of providing adequate operating, or working, capital to southwestern farmers and ranchers is requiring more attention on the part of lenders than formerly. Not only are larger amounts of nonreal-estate credit needed to accommodate today's commercialized and specialized agriculture, but the narrow profit margins make it necessary for the extension of credit to be realistic. A loan must be realistic as to the total amount extended, the interest return, and the timing of repayment. One of the major developments in nomeal-estate credit has been the increasing importance of loans with maturities of more than 1 year. These types of loans commonly called intermediate-term loans - are usually incurred for semicapital or capital improvement purposes. The bulk of the farm nonreal-estate loans in the Southwest is for crop and livestock production expenses and family living costs. The principal usage of intermediate-term credit in the Southwest has been for the purchase of farm machinery and equipment, for major alterations in or construction of buildings, and, to a lesser extent, for semipermanent or permanent types of soil conservation or land improvement practices. Tn some cases, such as a major change in farm organization, the additional income resulting from the change may be small and may not begin for some time after the change has been initiated.In such situations, full repayment of any loans may take considerable time. Commercial banks have been quite active in supplying intermediate-term credit to farmers and ranchers. In a survey of farm loans held by banks in the Eleventh Federal Reserve District in 1956, over one-fifth of the BUSINESS REVIEW I dollar amount of outstanding loans had been renewed ers and ranchers. This indirect lending of short-term one or more times in accordance with an understanding agricultural production credit is likely to increase between the banker and the farmer at the time the rather than diminish, further causing bank statistics original loan was made. Almost one-fourth of the debt to understate the credit requirements for agricultural on single-payment loans had been renewed once ac- production. As business firms compete to assure themcording to prior plans, and 8 percent of the outstanding selves of a market for their products, a source of supindebtedness repayable on an instalment basis had ply for their raw materials, and a way to achieve quality control or economies, there will probably be been renewed by plan. a closer tie between agricultural production and the Many lenders prefer to make notes due once each processing and distribution activities. year rather than for a longer period, even though it is Large city banks have long been important sources recognized that the note will have to be extended. This arrangement provides an annual opportunity to review of agricultural credit through direct lending activities, the financial progress of the borrower and to outline by the purchase of agricultural paper, and by particihis anticipated capital needs during the coming year. pation in the overlines of their country correspondents. On the other hand, some bankers prefer to make indi- These city banks are likely to furnish an increasing porvidual notes of varying maturities which will be con- tion of the total credit used in agricultural production sistent with the total credit needs and repayment if the trend in integration of the agricultural producpotential of the borrower. An annual review of the bor- tion and marketing processes continues. Direct lending rower's financial progress also is made and, in fact, is to farmers for production purposes is likely to remain a necessary part of determining the level at which the dominant for some time to come, however, and probably will constitute the major type of investment for borrower's line of credit should be set. the smaller country bank. The PCA's initiated a program of making loans Developments in agriculture which are requiring a with terms of up to 3 years in 1955, and the Farm more extensive use of credit are important to each type Credit Act of 1956 extended the permissible term to 5 years, effective at the beginning of 1957. Intermediate- of agriculture in this District. The broad trend toward mechanization, the increase in the size of farms to term loans are proving quite popular; as of June 30, utilize the efficiency of mechanization, and the tend1958, a total of $107 million in such loans was outstanding at PCA's in the Nation, or more than double encies toward large-volume production in agriculture apply equally as well to a cattle ranch as to a poultry the amount a year earlier. These types of loans acor cotton farm . However, various other problems and counted for 9 percent of the total amount of PCA outstanding loans at mid-1958, compared with only 5 per- practices need to be considered in relation to the specific types of agriculture. cent a year earlier. As mentioned above, articles dealing with ranching Another major influence in the short-term agricul- and cotton and grain sorghum farming will be develtural credit field is the rising importance of production oped and will discuss changes in such physical charcredit supplied by merchants, manufacturers, and other acteristics of farms as per acre yields and utilization of businesses selling to farmers and ranchers or using ag- farm land; financial aspects of operation, including ricultural products. This development has been partic- average capital requirements, types of receipts, and net ularly significant in the production of broilers and other income; and, finally, additional information on the inpoultry products, primarily as a result of contractual teraction between the physical and financial items and arrangements between producers and feed-manufac- the management ability of the fanner, incorporating turing and -distributing firms. These firms borrow from ratios of production per man-hour and per unit of incommercial banks on the basis of their own credit- put, operating expenses per unit of production, and worthiness and then extend credit directly to farmers prices received and paid. These articles are designed in the form of feed, chicks, or other production goods to present the interrelationships and differential impact and services. of the far-reaching changes in the management of agricultural production and credit resources. The credit extended by nonfarm concerns for the production of agricultural commodities is classed by banks as loans to businesses, instead of loans to farm- I BUSINESS REVIEW J. Z. RoWE Agricultural Economist I BUSINESS REVIEW BUSINESS, AGRICULTURAL, AND FINANCIAL CONDITIONS September employment of nonfarm workers in the Eleventh District states was only slightly higher than the August total, as seasonal gains concentrated in school employment were about offset by declines caused mainly by strikes and lower building activity. Texas unemployment, however, showed further improvement. Rains during the first part of October delayed crop harvesting, but generally favorable weather condil'ions 'after midmonth resulted in accelerated field work. Outturns of cotton and grain sorghums in the District states continue to exceed year-earlier levels. The 1959-60 Texas citrus crop is expected to be substantially above the preceding season's output. October rains boosted grazing prospects in the District; most calves are moving to market at heavy weights. Industrial production in Texas during September held at the August level, after allowance for seasonal factors. Minerals production was strengthened by a rise in oil output, and manufacturing activity generally remained at high levels outside strike-affected metals industries. Construction awards in the region were down again in August, with losses registered in both residential and nonresidential construction. Although total demand for petroleum products advanced contraseasonally while crude runs to stills declined, stocks of most major refined products rose to new record highs in September and the first half of October. As a result, prices of refined products remained depressed, and District states will maintain low crude oil production allowables during November. Very little change in imports of either crude oil or refined products was reported in September and early October. District department store sales in September dropped sharply from the record level reached in August but were still greater than in September 1958. Inventories rose about seasonally and remained well above a year earlier. September new car registrations in the District's four most populous areas were well below the August total as the end of the model year approached but still recorded a large year-toyear increase. In the 5 weeks ended October 21, gross loans (excluding loans to banks) declined $12.2 million at reporting member banks in the District. Deposits also declined, but investment accounts expanded. Bank reserve positions remained under pressure in September, and borrowings from the Federal Reserve Bank continued at a relatively high level. Sales at department stores in the Eleventh District during September were 3 percent above a year ago but showed a contraseasonal 9-percent decline from the record August level. The seasonally adjusted sales index dropped sharply from] 89 in August to 167 percent of the 1947-49 average in September but was above the 162 registered in September 1958. Cumulative sales at the end of the third quarter were still 9 percent above sales in the same period last year. showed month-to-month declines which ranged from 5 percent in Dallas, EI Paso, and Shreveport to 17 percent in Corpus Christi. Sales in the Houston area were up 8 percent for the largest year-to-year gain; at the other extreme, EI Paso department store sales were 4 percent below a year ago. It should be pointed out that the observance of Labor Day as a holiday in both 1958 and 1959 was not uniform at all the District's stores nor at all stores in anyone metropolitan area, which would account for some distortion in comparisons with yearearlier figures. Sales in each of the metropolitan areas in the District for which separate department store data are available The District department stores furnishing sales data by departments recorded the most favorable year-toBUSINESS REVIEW I DEPARTMENT STORE SALES AND STOCKS (Percentage chango in retell value) STOCKS (End of month) NET SALES September 1959 from Soptember 1959 from 9 mos. 1959 Aug. 1959 Area Total Eleventh District . ... Corpus Christi .. .. ....... . Dallas .•............ . . .. EI Paso . . .... . ...... . ... Sept. 1958 3 -9 -17 -5 -5 -6 -8 Fort Worth ............ . . Hou ston .. .. • .....•..•.. Son Antonio . ..•..•.....• 2 5 -4 -3 -14 Shreveport, la .. ..... .... Waco ........... . ..... . Other cities ...... ...... . cam p. with 9 mos. 1958 -5 -10 - 12 8 0 5 -3 6 Aug . 1959 Sept. 1958 10 - 1 17 5 - 1 19 8 9 1 7 5 4 8 1 9 2 11 4 6 12 4 7 9 10 3 6 8 3 6 1 INDEXES OF DEPARTMENT STORE SALES AND STOCKS Eleventh Federal Reserve District (1947.49 = 100) SALES (Doily overage) STOCKS (End of month) Se a sona lly Seasonall y Dote Unadjusted adjusted 1958, September.... 1959, July .......... August....... September. . . . 155r 155 176 160 162 174 189 167 Unadjusted 174 171 182 191p adjusted 164 180 182 181 p r -Revised. p - Preliminary, year comparisons during September in sales of women's apparel. Women's and misses' dress sales rose 14 percent over a year earlier, while sales of women's and misses' accessories and women's and misses' coats and suits increased 4 percent each. Men's clothing sales declined 3 percent. In the durable goods lines, sales of major household appliances scored the largest gain, rising 11 percent over a year earlier. Sales of radios, television sets, and musical equipment advanced 3 percent, while sales of furniture and bedding and of floor coverings were down 4 percent and 13 percent, respectively. At the end of September, District department store inventories were 10 percent above the year-earlier level and were up 5 percent, or slightly less than seasonally, from August. Orders outstanding and new orders placed recorded approximately seasonal movements from August to September; compared with September 1958, orders outstanding were up 16 percent, but new orders were 3 percent lower. New automobile registrations during September in the District's four most populous areas fell 22 percent below the August total but were 44 percent above a year ago. All four areas registered gains over the low level in September 1958; the largest was reported in the Houston area, where September registrations were almost IBUSINESS REVIEW double those of a year earlier. For the first 9 months of 1959, cumulative registrations in the four areas were 39 percent above the comparable 1958 period. General soaking rains through mid-October over a major part of the District delayed harvest ing , seeding of small grains, and preparation of soils for next year's crop. In most eastern sections, precipitation was so heavy that soils have been drying slowly; in some lowlying areas, they remain too wet to be worked. Wheat seeding in the Plains is being rushed, and over three-fourths of the crop has been planted. Moisture conditions are generally satisfactory in most wheat areas, and early plantings are up to good stands. Planting of oats in eastern sections was delayed by waterlogged soils until mid month. Fields planted prior to the early October rains are up to good stands, and later seedings should make rapid development. Cotton production in the District states is placed, as of October 1, at 6,578 ,000 bales, or 10 percent larger than both a year ago and the 10-year (1948-57) average. Compared with the September forecast, gains in output were noted for New Mexico, Oklahoma, and Texas, while slight decreases were indicated for Arizona and Louisiana. In Texas the crop is estimated to be 4,600,000 bales, or 7 percent more than in 195 8 and 16 percent greater than the 10-year average. The indicated average yield of 350 pounds per acre in the State is second only to last year's record yield of 383 pounds. Harvesting of a record grain sorghum crop is drawing to a close in the High Plains area of Texas and New Mexico, although wet weather caused repeated interruptions during the past month . In many areas, difficulty was encountered in harvesting the remaining acreages as much of the crop had lodged badly. Grain sorghum output in the District states is indicated at slightly more than 310 million bushels, or 2 percent larger than the previous record crop of 1958 and 21/3 times greater than the 10-year average. Windrowed peanuts in the Cross Timbers and parts of north Texas suffered damage as a result of heavy October rains. Only a small portion of the important Cross Timbers peanut crop has been dug. Production of peanuts in the Southwest, as indicated prior to the October rains, is placed at almost 358 million pounds, or 4 percent below the 1958 crop although 20 percent above average. Rice farmers in Texas coastal areas and in Louisiana have virtually completed the combining of remaining fields. Rice production, at 26 million bags, is 12 percent larger than last year's output, mainly as a result of increased plantings. CONDITION STATISTICS OF WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES El eventh Federal Reserve District (In thousands of dollars) Oct. 21, 1959 It em CROP PRODUCTION Commercial and indu stri al loans. . . ........... Agricultural loans •.. ..................... .. loons to brokers and deal e rs for purchasing or carrying : (In thousands of bushe ls) Estimat ed Co tton :! , •• •... . . Corn ... . .... . . . Wint er wh eat ... . Oats .. . . . .. . ... 8arl.y . . ....... Ry ............. Ric es.•. . ... . ... Sorghum grain .. . Flaxseed ...... . Hay ' ........... Peanuts5 • • • ••••. Irish potato es fl , •• ~:c~e~sr.~t~.t~~~~. : Oct. 1, 1959 4,600 43,708 56,440 24,156 6,884 135 13,136 276,912 385 2,359 221,200 2,620 1,560 26,000 1958 4,308 42,973 73,040 53,130 10,143 338 11,938 273,066 336 2,487 224,110 2,285 1,210 26,000 FIVE SOUTHWESTERN STATES' Av erag e Estimated 194 8-57 Oct. 1, 1959 3,956 41,073 35,3 5 8 24,373 2,2 06 223 13,013 113,524 753 1,753 193,061 ' 1,513 ' 1,351 35,040 6,578 71,281 150,771 38,636 29,5 86 1,025 26,046 310,477 455 6,541 357,700 5,852 6,695 68,400 Average 1958 5,953 70,560 196,780 77,823 35,848 1,679 23,158 305,047 361 6,773 371 ,0 60 5,192 6,107 60,000 1948- 57 5,962 70,487 103,644 38,987 13,757 853 25,360 132,824 1,023 5,156 297,879 ' 3,543 ' 6,366 73,180 Ari zona , Louisiana , 'New Max ico, Oklahoma, and Texas. I n thou sands of bales. $ 1,508,147 $ 1,507,386 33,4 28 34,930 37,9 29 743 12,288 738} 12,085 19,327 12,62 2 188,5 84 10,892 } 179,9 29 180,315 All ather loons ............................ 128,527 119,039 138 51,150 211,236 715,111 136,293 125,067 59} 29,480 219,344 715,330 Gross loons . ........................... l ess reserve s and unallocate d charg e- offs.. 2,981,013 50,299 U. S. Governm e nt securiti es ... . ............ Crop Oct. 22, 1958 ASSETS Texas and Five Southwestern States TEXAS Sept. 16, 1959 O ther securities . . .... .. ... .... . .. . .. .. .. Oth er loans for purcha sing or carrying : U. S. Gove rnment securities ..... ........... Other securiti es . . ... ...... ... . ..... .... . loons to non bonk flnancial institution s: Sales flnanco, personal flncnco, e tc .. ........ Savings banks, mtge. cos., ins. cos. , e tc .. ..... loans to for eign banks . ..... . .............. loans to dom estic commercial bonks•. ••. . .. .. . Real-estate loans .. ........... .... ......... Net loans . .. .. .... .... ....... ....... .. . Tr easury bills ... ..... . . . ...• .... .. .. ... ... Treasury certiflcat es of ind ebtedn ess . •........ Tre asury note s and U. S. Governm ent bond s, including guaranteed obligations, maturi ng: Within 1 year ................ . . .. ... . .. After 1 but within 5 years . . .. .. . ...... . .. After 5 years .... . ...... ... ............. --2,930,714 --113,091 45,658 10,489 22 6,579 --- --2,971,533 2,710,227 51,031 45,864 2,920,502 2,664,363 54,836 50,696 101,209 174,506 :1 In thou sand s of ba gs containIng 100 pound s each . 01 In tholl$onds of ton s. r; In thuu sands of pounds. o In thousands of hundredweight. " Avorage, 1949·57. SOURCE, United States D epartm e nt of Agriculture . Other securities . ....... . . . .. . .. ........ . . . 36,625 818,457 312,545 345,154 Total investments . ...................... , 1,671,530 1,622,948 1,805,549 Cash item s in process of coll ection . ........... Ba lances with banks in foreign countries • ..... . Currency and coin . .........•.............. Reserves with Federal Reserve Bank . ....... .. Other a ssets. . . . . . . . .. . .. ...... . . ..... ... . 492,356 467,544 2,218 50,500 547,269 188,087 548,464 519,544 1,816 50,877 591,286 167,528 433,137 448,222 2,139 48,615 597,793 180,382 TOTAL ASSETS ....................... 6,350,218 6,422,965 6,180,200 Bank s in foreig n countri es . .. ... . . .. . ... . .. Certifled and offlc ers' check s etc .. .• . ...... , 2,973,959 210,460 168,391 972,420 15,965 71,922 3,007,607 137,875 169,180 1,042,977 16,634 79,547 2,958,699 109,805 139,815 968,139 16,851 52,802 Total demand de posits ................. 1 !l 4,413,117 4,453,820 4,246,111 Time deposits Individuals, partn erships, and corporations .. .. Unite d States Gov ernment • ............... Postal savings . ........... . .......... . .. Stat es and political subdivisions . •.... ...... Bank s in the U. S. and foreign countrie s•. . " . 1,053,581 6,255 421 169,510 7,453 1,059,366 7,035 421 166,517 7,774 1,064,300 7,455 42 1 222,465 6,807 Total tim e deposits . ................... 1,237,220 Total deposits ... .. . ....... . .... . ... 5,650,337 76,822 87,019 536,040 --5,694,933 8a lances with banks in the Unite d States •...... The total citrus crop in Texas for the 1959-60 season is placed at 9 million boxes, compared with 6,5 million boxes from the 1958-59 crop. Grapefruit production showed a gain of 38 percent over last year, and the outturn of oranges is indicated to be 39 percent larger. The quality of the fruit is expected to be the best in recent years if conditions remain favorable. Grazing prospects have been maintained in most sections of the District as a result of widespread precipitation. Forage conditions in the eastern half of the District are particularly lush, and recent cool temperatures have promoted the development of winter weeds, grasses, and clovers, Gross loans (excluding loans to domestic commercial banks) contracted $12.2 million at weekly reporting banks in the District during the 5 weeks ended October 21. This decline, which contrasts with a moderate gain during the comparable period last year, further extends an emerging pattern in which recent loan growth has been smaller than in the corresponding period of 1958. During the first half of 1959, however, loans expanded at a substantially higher rate than in the first half of the preceding year. 41,313 } 845,532 1,210,819 296,859 319,015 333,712 LIA81l1T1ES AND CAPITAL ACCOUNTS Demand de posits Individual s, partn erships, and corporations ... . United State s Governmen t . •.............. States and political subdivisions • ......... .. 8anks in the United States . • ..... ... .... ... Bills payable, rediscounts, etc .. ....... . .. . . . . All other liabilities •........................ Capita l accounts . .. . .. ...... ... . ...... . . . . TOTAL LIABILITIES AND CAPITAL ACCOUNTS 6,350,218 --- --- --- 1,241,113 1,301,448 128,956 65,555 533,521 5,547,559 52,500 86,519 493,622 6,422,965 6,180,200 NOTE: Effect ive July 1 , 1959, thi s se ri es was revised. Th e revised form includes is loan s to flnancial in stitution s, previ ously reported a gain st oth er Joan catego ries. Comparabl e year-earlie r flgures fo r the new items wi ll be shown w hen th ey be com e a vailabl e. ~eve ral new items, th e most important of which The latest 5-week decline in loans was weighted heavily by contraction in the real-estate loan category, which has registered an uninterrupted decline since midyear, and by contraction in loans to nonbank financial institutions. Consumer-type loans also moved lower in the 5-week period, following persistent advances earlier in the year. BUSINESS REVIEW I RESERVE POSITIONS OF MEMBER BANKS CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS Eleventh Federal Reserve District (In thousands of dollars) (Averages of daily figures. In thousands of dollarsl Oct. 21, 1959 Item September August 1959 1958 Item RESERVE CITY BANKS Reserve belances .. . .............. Required reserves . .. .... . ........ Excess reserves . ....... .... .. .... Borrowings •. .. .. .•..•......... . . Free reserves •. .•..••.•...•... . .. Oct. 22, 1958 $ 736,948 20,810 36 1,063,419 1,084,265 983,307 804,072 $ 783,106 21,200 68 988,099 1,009,367 987,223 759,534 September 1959 Sept. 16, 1959 $549,249 545,675 3,574 22,143 -18,569 $ 554,607 546,277 8,330 21,128 -12,798 $559,407 551,OH 8,393 2,619 5,774 444,820 405,348 39,472 21,868 17,604 445,604 404,443 41,161 22,446 18,715 434,002 384,656 49,346 2,695 46,651 994,069 951,023 43,046 44,011 -965 1,000,211 950,720 49,491 43,574 5,917 993,409 935,670 57,739 5,314 52,425 $ 701,895 24,235 296 1,052,293 1,076,824 Total earning asse ts ••••.. •.....•..•...•..• 950,849 MOfr\ber bank rese rve deposits.. •. .......... Federal Reserve notes In actual circulation .••• . 803,509 Total gold certificate reserves . •.. ........ . .. Discounts for member banks . . ............. . Other discounts and advances . ............ . U. S. Government sec urities .. . .. . ...... .... . COUNTRY BANKS Reserve balanc es ... .......... .... Required reserves . •........•. . ..• Excess reserves . .......... . ... ... Borrowing s. ............. . . .. .. .. Free reserves •. .•..••...........• MEMBER BANKS Reserve balances ... ............. Required reserves . ............... Excess reserves . ... .. ............ Borrowings •• ...•.•..••.•.• •..•.• free reserves .. .................. The combined declines noted above were partially offset by upward movements in two loan categories during late September and early October. Loans to finance securities transactions showed a moderate gain, and commercial and industrial loans moved modestly higher. At the end of the period, gross loans at the reporting banks were 10 percent above the year-earlier level. Investment accounts at weekly reporting member banks expanded fairly sharply during the 5 weeks, registering a gain of $48.6 million. Bank subscriptions to a recent special offering of Treasury bills more than accounted for the over-all increase, as total bill holdings rose $58.3 million. Reporting banks liq uidated Treasury certificates of indebtedness and also notes and bonds maturing within 5 years, but they acquired an additional $15.7 million of Government bonds maturing after 5 years. Non-Government investments also rose moderately. Despite a substantial increase in Government deposits, associated with bank payment for newly issued securities, total deposits at reporting banks registered a 5-week reduction of $44.6 million. Reflecting principally the net withdrawals made by correspondent banks and individuals and businesses, demand balances declined $40.7 million. Nevertheless, demand balances remained 4 percent above the year-earlier level. In an extension of the downward movement which has prevailed since midyear, time accounts decreased $3.9 million, reaching a level 5 percent below a year ago. Earning assets of the Federal Reserve Bank of Dallas declined $7.4 million during the 5 weeks ended October 21. The Bank's holdings of Government securities reg- r BUSINESS REView istered a slightly larger decline, reflecting System sales and redemptions of Government securities during the period, but part of this reduction was offset by an increase in the volume of discounts and advances for member banks. Gold certificate reserves of the Bank showed a decrease of $35.1 million during the 5 weeks. Federal Reserve notes in actual circulation also decreased nominally but on October 21 were almost 6 percent above the year-earlier level. NEW PAR BANKS The First State Bank, Dell City, Texas, an insured nonmember bank located in the territory served by the EI Paso Branch of the Federal Reserve Bank of Dallas, was added to the Par list on its opening date, October 1, 1959. The officers are: Charles Thomas, President, and Olian Vinson, Cashier. The Belfort State Bank, Houston, Texas, an insured nonmember bank located in the territory served by the Houston Branch of the Federa l Reserve Bank of Dallas, was added to the Par list on its opening date, October 1,1959. The· officers are : E. R. Boehck, President; J. W. Wilson , Executive Vice President; and Fredric M. Saunders, Cashier. The Sandia State Bank, Sandia, Texas, an insured nonmember bank located in the territory served by the San Antonio Branch of the Federal Reserve Bank of Dallas, was added to the Par list on October 21, 1959. The officers are: K. E. Schlabach, President; Ruth A. Schlabach, Vice President; Hazel A. Shives, Cashier; and Jeanette Herschap, Assistant Cashier. Total demand for major petroleum products advanced contraseasonally during the 5 weeks ended October 16 and averaged 2 percent greater than a year earlier. Demand for gasoline continued high despite the close of the usual vacation season and was 5 percent above a year ago. Although increasing in line with seasonal expectations, demand for distillate fuel oils remained 2 percent lower than in the early fall of 1958. Although total demand for the major refined products advanced over 3 percent during late September and early October, crude runs to stills declined nearly 5 percent and were at about the same level as a year ago. District crude runs declined even more than the national average and, at a rate of 2,049,000 barrels daily during the first half of October, were almost 9 percent lower than in the corresponding period of 1958 . Despite the impressive rise in product demand and the efforts of refiners to reduce domestic output of petroleum products, stocks of most refined products continued to increase during the early fall. Gasoline stocks, which totaled 178,732,000 barrels on October 16, were 5 percent greater than a year earlier; at the current level, gasoline stocks continue to depress both wholesale and retail prices. Stocks of the four major refined products totaled 451,761,000 barrels on October 16, or 5 percent above a year earlier. NONAGRICULTURAL EMPLOYMENT Five Southwestern Stotes 1 Pe rc ont chan ge Sept. 1959 from Numb er of pe rson s Sept emb er Typ e of e mployment August Sept emb er 1959p 1959 1958r Total nonagricultural wag e and salary workers .. Manufacturing . .. . .. . .... 4,294,800 774,700 Nonmanufacturing . . .. .•.• 3,520,100 Mining .. . .. ...... . .. . 248,500 Construction . •• ... • • .. . 318,200 Transportation and public utilitios . ... . . . . 398,900 Trodo . . .. . .... . . ..... 1,050,800 Finance .. . .. .... . .. . . . 191,100 Se rvice . . . . . .. . . . . ... . 506,100 Gov ernm ent •. . .. ...... 806,500 Aug . 1959 Se pt. 1958 4,291,100 776,300 3,514,800 256,100 323,300 4,231,400 762,300 3,469,100 251,000 303,200 0. 1 -.2 .2 -3.0 - 1.6 1.5 1.6 1.5 -1 .0 4.9 399,500 1,047,900 192,400 509,200 786,400 397,400 1,040,000 185,600 500,000 791,900 - .2 .3 - .7 - .6 2.6 .4 1.0 3.0 1. 2 1.8 Arizona, lou is iana, N ew MeX ico, O klahoma , and Tex as . p Pre lim inary. rRevi sed . 1 SOURCE: Stote e mployme nt age ncies. portant minerals sector was strengthened by an increase in crude oil production and manufacturing output, except in steel and steel-consuming industries and petroleum refining. Major manufacturing industries improving production during September included food , chemicals, and transportation equipment. Crude oil production was stable during the first half of October in the Nation but declined slightly in the District. With Texas allowables set at 9 days, District crude oil production averaged 2,848 ,000 barrels daily during The value of construction contracts awarded in the the first 16 days of October, compared with 3,058 ,000 District states decreased another 9 percent during Aubarrels daily a year earlier. Despite comparatively low gust to a level 16 percent below that of August 1958. rates of crude oil output, stocks of crude oil in the United Both residential and nonresidential construction shared States rose slightly during early October. For the fifth in the decline. Furthermore, the number of dwelling consecutive month, Texas allowables for November units proposed in FHA applications received in the Dishave been set at 9 days, but because of the shorter trict states during August decreased to 4,400, or down month, daily average production probably will rise 24 percent from July - compared with a national de2 percent. In Louisiana, crude oil production allow- cline of 12 percent. Major industrial and commercial abIes are scheduled for no significant change in Novem- projects proposed for the District include a $9 million ber or December. telephone building expansion in Dallas and two new September employment of non- iron and steel plants in the western part of the District. agricultural workers in the Dis- A $3 .2 million steel mill is scheduled for the EI Paso trict states, at 4,294,800, showed area; and a $3.5 million iron mill, using local magnetite a slight increase of 3,700 over ores, is contemplated for Alamogordo, New Mexico. the August total. Seasonal gains INDUSTRIAL PRODUCTION concentrated in school employment were almost ISea sonolly odiu sted Indexes, 1947·49 = 100) matched by employment declines caused mainly by the copper and steel strikes and decreases in building Septemb er August Jul y Septemb er Ar ea and typ e of ind ex 1959p 1959 1959 1958 activity. TEXAS Total Industrial production . . . . 170 170 168 168r Unemployment in Texas decreased another 5,400 Total manufacture s .. . . . . ... 209 210 205r 194r Durab le manufactures . . . .. . . 246 248 236 226r workers in September to reach a level of 147,500, or Nondurable manufactures .. .. 192 192 191 r 179r Min oral s• . ... 132 13 1r 143 r 4.1 percent of the civilian labor force. Total claims for UNITED STATES .. . ... . . .. .. . 132 149 153 unemployment compensation in Texas declined 1 per- . Totall indu strial production..•. .. 148 137 Tota manufactures . .... .. 152 153 157 139 Durabl e manufactures . .. ... . 158 167 159 145 cent from mid-September to mid-October. Nondurabl e manufacture s. .. . 145 133 146 146 Industrial production in Texas was seasonally constant during September, although second ary effects from the steel strike were gaining momentum. The im- Minera ls.. .. ... . .. .. .. . .. . 116 117 118 123 Pre liminary. Revi se d . SOURCES : Board of Go ve rn ors of th e Federal Rese rve Sys te m. Fede ral Rese rve Bank of Dalla s. p - r- BUSINESS REVIEW I CONDITION STATISTICS Of ALL MEMBER BANKS BANK DEBITS, END-Of-MONTH DEPOSITS AND ANNUAL RATE Of TURNOVER Of DEPOSITS Eleven th Federal Reserve District (Dollar amounts in thousands) Debits to demand deposit accounts 1 (In million s of dollars) Demand d e posits 1 Percentage change from September 1959 Area Aug. Sept. 1959 1958 ARIZONA Annual rate of turnover Sept. 30, 1959 Sept. Aug. Sept. 1959 1959 1958 216,582 9 15 127,805 20.2 18.6 21.4 77,383 30 2,549 4 1 -2 6 51,311 190,587 17.8 19.0 17.0 19.2 17.6 19.7 37,703 5 18 29,405 15. 2 14.8 13.4 101,724 226,365 201,750 162,236 197,038 17,200 2,574,482 332,412 780,877 93,644 2,560,855 26,248 183,434 60,873 58,092 603,139 21,024 88,524 115,869 121,710 11 -3 -8 8 14 15 2 10 4 -10 14 13 63,78 2 115,317 143,047 100,636 111,652 20,059 1,138,722 164,012 374,426 62,529 1,230,380 2 1,811 105,529 42,371 46,334 387,952 15,051 59,184 67,302 103,399 19.1 23.3 1 6.6 19.6 21.0 10.3 27.4 23.8 24.8 17.5 25.1 14.5 20.4 17.2 15.1 18.4 16.4 17.6 20.6 14.2 17.2 23.6 17.0 18.1 20.8 10.1 27.4 22.8 24.1 15.2 23.5 13.2 18.7 17.3 13.8 18.0 16.7 16.7 19.1 13.8 17.5 20.2 1 9.3 17.2 19.7 10.4 24.8 22. 8 23.8 16.4 22.7 13.7 18.4 16.1 14.6 16.8 14.2 16.3 16.8 11.6 Tucson ............. . $ LOUISIANA Monroe •.•...•..••.. Shreveport ......... . Sept. 30, 1959 Item ASSETS Aug. 26, 1959 4,731 2,468 839 891 146 1,032 3 569 295 loans and disco unts... . ........ . .... ... . United States Governm ent obligations ..... . Other securities ................... . ... . Reserves with Federal Reserve Bank ...•.... Cash in vault e ... . . .. .. . .. .. . ......... . Balances with banks in the United States ... . Balances with bonk s in foreign countri es e ... . Ca sh ite ms in proce ss of collection ........ . Oth er o sse tse ......................... . Sept. 24, 1958 $ 4,765 2,585 815 939 146 954 2 502 268 $ 4,320 2,647 778 961 156 1,107 1 459 257 10,686 TOTAL ASSETse .................... . NEW MEXICO Roswell .••..••.•...• TEXAS Abilene ............ . Amarillo ..••.•.• .. •. Austin . . .......... . . Beaumont •... .• . .. • . Corpus Christi ....... . Corsicana .. .... " .. . Dallas ............. . EI Paso . . ....... ... . Fort Worth .. . .. . ... . Galveston ..... ..... . Houston .•••••.••... loredo ............ . Lubbock ........... . Port Arthur •......... Son Angelo ........ . Son Antonio ...... . . . Texa rkana 3 •••• • • • •• Tyler • . . .... .. .. .. .. Waco ............. . Wichito Falls .... . .. . o 1 o 4 4 7 15 3 13 8 -2 11 1 16 1 12 12 7 6 9 - 3 5 9 2 Total-24 cities ........ $9,161,713 3 6 6 22 16 12 $4,772,603 23 .0 22.2 LIABIlITIES AND CAPITAL Demond deposits of banks ........•.... .. Oth er d em and d eposits . .. •............ . . Tim e d eposits .. ...... . .... .. .......... . 1,130 6,645 2,113 1,06 2 6,678 2,124 1,219 6,380 2,1 09 Total deposits .... .. ........ ...... .•. 9,888 72 96 918 9,864 112 86 914 9,708 20 105 853 10,976 10,686 Borrowings e ................... .. ..... . Other lIabilities e .................. . ... . Total capital occounts e .. ..... . ......... . TOTAL LIABILITIES AND CAPITALe .... . . e-Estim at ed. GROSS DEMAND AND TIME DEPOSITS Of MEMnER BANKS Eleventh Federal Reserve Di strict (A verages of daily flgures. In millions of dollars) 2 1. 2 GROSS DEMAND DEPOSITS l Deposits of individua l" parfnerships, and corporations and of stot os and political subdivisions. : These figures include only on c bank in Texarka na, Texas. Total debits for all banks in Texarkana, Texas·Arkansas, including one bank located in th e Eighth District, TIME DEPOSITS Total 1957, September. 1958, September. 1959, May ... . .. $7,312 7,64 1 7,674 7,678 7,662 7,643 7,779 $3,585 3,792 3,751 3,771 3,760 3,770 3,921 Country bonks Tota l Reserve city bank s Country bonks $3,727 3,849 3,923 3,907 3,902 3,873 3,858 Dote Re serve city bonks $1,649 2,114 2,156 2,177 2,159 2,125 2,113 $ 891 1,166 1,125 1,135 1,12 2 1,099 1,087 $ 758 948 1,0 31 1,042 1,037 1,026 1,026 amounted to $49,023,000 for the month of September 1959. VALUE Of CONSTRUCTION CONTRACTS AWARDED June ...... (In thousands of dollars) Jul y .... .. August •... September. January-Aug ust Jul y 1959 August Area and type 1959 August 1958 1959 1958 FIVE SOUTHWESTERN STATES1 .......... $ 325,598 $ 357,580 $ 386,189 $ 2,792,279 $ 2,783,344 164,609 164,854 Residential. ....... 176,673 1,321,59 1 1,115,225 160,989 192,726 20 9,516 1,470,688 All other .......... 1,668, 119 UNITED STATES .. .... 3,083,649 3,635,4-14 3,466,576 25,573,909 23,798,508 1,684,9 19 1,450,576 12,115,843 Residential ...... . . 1,551,224 9,500,035 All other .. . ....... 1,532,425 1,950,525 2,016,000 13,458,066 14,298,473 1 BUILDING PERMITS VALUATION IDolia r amounts in thousandsl Percentage change Sept. 1959 Arizona, lou isia na, New Mexico, Oklahoma, and Texas. NUMBER SOURCE, F. W. Dodge Corporation. 824 6,104 $ 4,9 19 29,297 80 280 138 48 1 4,225 1,906 22,187 -34 -34 - 10 177 306 320 368 70 2,255 620 758 123 1,306 273 190 1,485 267 157 2,118 2,935 2,927 3,3 18 771 20,5 19 5,7 10 7,314 1,043 13,576 3,097 1,748 13,223 2,107 1,65 2 1,975 1,892 7,294 1,453 1,5 12 13,064 7,687 3,251 252 16,666 3,063 934 6,713 907 833 22,947 28,981 46,318 15,4 19 16,840 136,774 51,059 45,462 3,295 159,389 45,526 8,242 -19,221 12,370 11,563 - 15 -57 44 5 39 -8 7 - 27 -77 16 - 15 11 78 24 36 -39 -42 38 29 39 -5 44 - 15 1 -2 1 - 38 160 43 -39 -6 42 35 26 -4 - 10 14 3 13 15 - 9 45 -2 5 1 9'1 Total-17 cities •. 9,980 92,387 $74,321 $704,890 5 - 1 10 CRUDE OIL: DAILY AVERAGE PRODUCTION ARIZONA Tucson •.•..... LOUISIANA Change from September 1959 1 Area ELEVENTH DISTRICT. ....... Texas ... . . .......• . . ... Gulf Coa.t ............ West Texas ... . ....... East Texas (praper) ..... Panhandle ............ Rest of State ... ..... . . Southeastern New Mexico .. Northern louisiana .••..... OUTSIDE ELEVENTH DISTRICT. UNITED STATES ............ SOURCES: 1 =:! August 2,858.2 2,493.4 460.2 1,094.4 132.2 110.0 696.6 251.0 113.8 3,965.8 6,824 .0 2,817.6 2,45 3.4 456.0 1,065.9 129.2 109.6 692.7 249.9 114.2 3,992.2 6,809.8 1959 1 August 1958' 1959 September 1958 3,244.8 2, 888.5 545.9 1,263.0 167.7 109.1 802.8 243 .9 112.4 3,854.3 7,099.1 40.6 40.0 4.2 28.5 3.0 .4 3.9 1.1 -.4 -26.4 14.2 -386.6 -395.1 - 85.7 - 168.6 -35.5 .9 -106.2 7. 1 1.4 111.5 -275.1 Estimated from American Pe trol e um In stitute week ly roporls. United States Bureau of Minos. BUSINESS REVIEW 12 September Shreveport .... 1959 9 mos. 1959 Aug. Sept. 1959 1958 9 mos. 1959 9 mos. Are a (In thousands of barrels) from Sept. 1959 Sept. 1959 camp. with 9 mos. 1958 TEXAS Abilene ....... Amarillo ...... Austin ... ... .. Beaumont. ... . Corpus Chri sti.. Dalla s ..... . . . EI Paso ....... Fort Worth .... Galveston .. .. . Houston ...... Lubbock . ..... Port Arthur .... San Antonio ... Waco •....... Wichita Falls ..
