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BUSINESS REVIEW NOVEMBER 1961 Vol. 46, No. 11 FEDERAL FUNDS MARKET IN THE SOUTHWEST Increased participation by individuals has broadened their interest in and understanding of the stock market and the Government securities market. The highly specialized Federal funds market, however, is not generally understood outside a very limited circle of participants. This unique market, which deals in a special kind of loanable funds, has an important role in bank and security dealer operations. Federal funds are commercial bank reserves on deposit with the Federal Reserve banks in excess of those needed to meet reserve requirements . Member banks of the Federal Reserve System are required to hold a certain portion of their deposits as reserves either as vault cash or as deposits with their district Federal Reserve bank. In handling reserve positions, banks may be deficient some days and have excess reserves on others as long as the daily average requirement is met for the I-week or 2-week period, depending on the class of bankreserve city or country. Many country banks have excess reserves most of the time, but these banks are not major factors in the Federal funds market. The larger money market banks, which are the main participants in the market, often experience wide swings in deposits that create reserve deficiencies or excesses on a particular day. The Federal funds market enables banks with excess reserves to lend a portion of those reserves to banks with deficiencies or to others desiring such funds. Thus, the Federal funds market is one in which the participants, mainly banks and Government security dealers, borrow (purchase) and lend (sell) the excess reserves of member banks. The usual unit of trading in the Federal funds market is $1 million or more. FEDERAL 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) The Federal funds market, which is peculiar to the United States, developed early in the 1920's as New York City banks sought a means of adjusting reserves to the vagaries of economic and financial activity. During that decade, the volume of Federal funds transactions rose substantially, with the market expanding to banks outside New York City and to nonbank institutions, primarily for dealer financing and the settlement of transactions involving short-term Government securities. Between 1925 and 1932, the average daily volume of Federal funds transactions ranged from $100 million to $250 million. A marked reduction in credit demands and an expansive Federal Reserve policy during the depression of the 1930's assured the banks a large amount of excess reserves and severely reduced the demand for Federal funds. As a result, activity in the Federal funds market declined noticeably, and the market became largely regional in character. Legislation enacted during the 1930's brought a decline of the call money market and encouraged some increase in Federal funds activity in the World War II and early postwar periods, although reserve adjustments were handled mainly through sales of Government securities at prices supported by Federal Reserve action. Following the Treasury-Federal Reserve "accord" in March 1951, the market for Federal funds expanded noticeably. Monetary policy resumed its flexible role, and, when credit conditions tightened during periods of inflationary pressure, banks had to depend more heavily on borrowing or divestment of securities to EXCESS RESERVES AND BORROWINGS OF ALL MEMBER BANKS UNITED STATES MI LL ION S OF DOLL ARS 1,000 400 200 __-__---=-:::.::..:.:..:=~ \. --1__----_j 200 1959 SOUR CE: Board of Goy.rna", F.deral 1960 R.. trYI 5y. I.m. IBUSINESS REVIEW 12 11:1961 1961 adjust their reserve positions. However, with prices of Government securities moving downward concomitantly, banks were reluctant to adjust reserves through the sale of such securities and, hence, turned to the Federal funds market. The average daily volume of Federal funds transactions rose from a range of $350 million to $450 million in the 1950-53 period to its present range of $1 billion to $2 billion. With the passage of time, the Federal funds market has developed into an efficient market instrument for a variety of purposes. The market continues to be used mainly to adjust bank reserve positions; but the practice of settling Government securities transactions in Federal funds has brought Government security dealers into the market, and the financing needs of these dealers have further increased the participation by banks outside New York City. The preference for settling in Federal funds is explained by the fact that such funds are reserve balances and, thus, are immediately available to the recipient. In contrast, clearinghouse funds involve a check drawn on a commercial bank and are available only after the lag associated with the check collection schedule. Lesser market participants include some foreign institutions and savings banks located within New York City and a small number of nonmember banks that participate via their correspondent banks. These institutions are rarely ever purchasers of Federal funds but, on occasion, have supplied a substantial volume of funds to the market. In spite of the broader range of participants, the Federal funds market remains primarily a bank market. The member banks of the Federal Reserve System account for approximately 90 percent of the total transactions in the Federal funds market, with New York City being the center of market activity. Since the larger banks account for the greater portion of the activity in Federal funds and since most large banks try to adjust their reserve positions daily, the demand for and supply of I-day funds clearly dominate the market. Thus, more than 95 percent of all Federal funds transactions are for I day. While the Federal funds rate generally reflects the demand for and supply of I-day funds, the rate moves within fairly well-defined limits. The lower limit is set by the expense of negotiating and handling the transaction. The upper limit to the Federal funds rate is set SELECTED MONEY MARKET YI ELDS PERCENT PER ANNUM PERCENT PER ANNUM 5 4 5 I ..-......"j".•.•.•. F.R. DISCOUNT RATE - ---',-.----..,S . ........ r \ (NEW YORK) 4 \, . ' -, siderable rate differential may exist without any noticeable shifting of funds. In summary, a bank has several alternative sources of funds with which to meet reserve deficiencies. A bank's decision as to whether to purchase in the Federal funds market, borrow from its Reserve bank or sell securities depends largely on the relative cost ~nd availability of funds from each source. \ 3 ~-\\ ~ ~', ". . ····' .. l· y'" 2- TREASURY BILL RATE (91 - DAY) I . 3 '. '. ,'''t... ............. '. i····, \ ~ \ - 1- \- /\- , 2 •1 ' \ I 1959 \ l EFFECTIVE RATE,\: ON FEDERAL FUNDS t '. I 1960 \ : \: './ I 1961 'T"- .H'clln rol. l,th'fol. ror thl h.avl .. , volum,or purc;holl and 101. Iron.octlon •. SOURCE: Boord of Goytrnor',F.d.fOI R... rv. Sys t,m. by the discount rate of the Reserve banks. A bank would not normally pay a rate for Federal funds that exceeds the cost of borrowing at the discount window. In a period of heavy monetary restraint, the Federal funds rate is likely to be at or very close to the level of the discount rate. In a period of monetary ease, increased availability of reserves will usually bring the Federal funds rate below the discount rate for an extended period. However, on anyone day or for a num?er of days, unanticipated strains in the market or an unbalance in the reserve picture may move the Federal funds rate toward or away from the discount rate despite the general pattern of policy. Reserve adjustments may also take place through the purchase or sale of securities, especially Treasury bills. Consequently, in addition to being closely related to the discount rate, the Federal funds rate is also related to rates on Treasury bills of shortest maturity. This relationship, however, is not as precise as that between the Federal funds rate and the discount rate. If the rate on the shortest maturity Treasury bills is above the Federal funds rate, banks which have other than I-day excess reserves might find it more advantageous to invest in bills than to sell Federal funds. It is important that these excess reserves be available for more than 1 day, how~ver, since a Treasury bill is usually an unprofitable InVestment unless it is held at least 2 or 3 days. The Situation is reversed, of course, if bill rates are below the Federal funds rate. Nevertheless, as a result of traditional methods of operation, certain banks may prefer to adjust their reserve positions through one investment l1Iedium exclusively; and where such is the case, a con- Data on the participation by Eleventh District banks in the Federal funds market are gathered from reports to the Federal Reserve Bank of Dallas by major southwestern banks which probably account for nearly 90 percent of Federal funds activity in this region. Such reports indicate the characteristics of the Federal funds market in the Southwest and the important changes in that market. District purchases and sales of Federal funds each averaged about $61 million per day from September 1959 through August 1961. Over the 24-month period, both total purchases and total sales exceeded $31 billion. District Federal funds activity expanded sharply from late 1959 through mid-1960, with the total volume of purchases and sales more than doubling. Thereafter, the total volume slackened a little until August 1961. Between March 1960 and August 1961, however, the combined total of purchases and sales of Federal funds in this District had fluctuated between $2 billion and $4 billion per month. The stimulus to Federal funds activity in the 1960 period can be attributed, in part, to the rising level of excess reserves available to FE DERAL FUNDS ACTIVITY ELEVENTH FEDERAL RESERVE DI STRICT OILLlOHS OF DOLLARS 91 LL I ONS OF DOLLARS 5 5 4 ~-4~-------- ----~-------- 31---4------- J 2 - ,.. I I , "" I , \ ••• • !I~;I ... ,, .,'~,,' ~/\ .'. r"'~ " , - , - . - . - : :,' •••••. "... - -/ ' 2 \: .'". ... h,. " 1, ' Y ,,' ~ " \ I \ " .. ,,-. '.,. I ,' I,l " '" ,,, '''1'' SALES l -::l - · - - - \... "", , ' - - ·•• •••• ., : I '(PURCHASES 1961 196 0 BUSIN ES S REVIEWI 11 :1961 31 the banks because of the shift in monetary policy. With Federal Reserve policy moving toward a position of active ease, free reserves of banks rose sharply, and Federal funds became more available. The increased supply lowered the rate below the cost of borrowing through the discount window, and it was often less expensive to adjust reserve positions through Federal funds transactions than by sales of short-term Government securities. To a large extent, especially for particular banks in this District, the Federal funds market has served as an alternative to borrowing from the Federal Reserve. While the total volume of such purchases has by no means been tied directly to a reduction in borrowing from the Federal Reserve, a substantial portion has been related to the lower level of borrowing. Another factor building up the volume of Federal funds activities has been the participation of banks in some of the larger-scale short-term Treasury financings. By means of their Treasury Tax and Loan Account privileges, many of the larger banks in this District have purchased the new issues heavily. However, the Tax and Loan Accounts did not remain with the banks as long as had been expected, and banks were faced with a need to borrow funds to meet reserve requirements. Another factor on the demand side which stimulated Federal funds activities was the needs of dealers to finance their enlarged portfolios of Government securities. With excess reserves available to the banks, this demand was translated into substantial sales of Federal funds, particularly in the latter half of 1960 and the first half of 1961. From September 1959 through August 1961, Eleventh District banks were net purchasers of Federal funds in exactly half of the 2-year period and net sellers in the other half. The largest concentration of net purchasing occurred in early 1960, when some banks were still under pressure but excess reserves were beginning to show up with greater frequency. On the other hand, net selling by the District banks was most prominent in late 1960 and early 1961 in response to the dealer demands for Federal funds and before the heavy participation of banks in the new short-term Treasury financings. Among the most interesting characteristics of the Eleventh District Federal funds market has been the concentration of purchases and sales with the San Francisco Federal Reserve District and with New York City. During the 2-year period, purchases of Federal funds I BUSINESS REVIEW 11: 19M from the San Francisco District and from New York City each accounted for approximately 40 percent of total District purchases. Thus, these two areas combined are the source of about 80 percent of the funds purchased by Eleventh District banks. Purchases from the St. Louis District and intra-Eleventh District purchases of Federal funds each accounted for an additional 5 percent, while the remaining districts supplied only 10 percent of total purchases. In the same period, New York City and the San Francisco District were heavy purchasers from banks in the Dallas District. New York City absorbed 61 percent of Eleventh District Federal funds sales, and the San Francisco District purchased 29 percent, for a combined total of 90 percent. Intra-District sales amounted to approximately 5 percent of the total, and the remaining 5 percent were made to the other districts. The only important net purchaser of Federal funds from the Eleventh District was New York City. The remaining districts, with the exception of the Ninth District, were net sellers of Federal funds to the Eleventh District. The large volume of transactions with New NET PURCHASES OR SALES OF FEDERAL FUNDS ELEVENTH FEDERAL RESERVE DISTRICT MIl.l.ION S OF DO L. l.ARS MILLION S OF DOLl.ARS +1,500 +1,500 +1, 000 1 - - / -- - - - - + - - - - -"'"'- +1,000 4 +500 -500 1 - - - - ! - - - - - - 1 - - - J - - - - i -500 -1,000 1 - - - --1 -1,000 -I, 500 4 59 19;rl.-l--'--''---'-...l-~;:;-'-J..---1--'--~~~1~~-'--.l--'--.J -1,500 961 EXCESS RESERVES AND BORROWINGS OF MEMBER BANKS ELEVENTH FEDERAL RESERVE DISTRICT THOUSA NDS OF DOLLAR S THOUSAND S OF DO L L ARS 100 80 60 ~ 'P\ " /\ - - - -- " .....-----~ 100 ., _ _ _ ............"-EXCESS RESERVES ""','-- ................; .....-; \ _~ _ _ _ _+-_ _ _ _ 20 I--t--::==~- '!, 80 60 ~ 40 A--~----~ 20 York City is explainable by the centering of money market activity and dealer accounts in that city. Moreover, foreign transactions are largely consummated there. The importance of the San Francisco District as a source of Federal funds for banks in the Eleventh District probably results, in part, from the time zone differential between the East and West Coasts. After banks in the East have closed, Federal funds transactions with banks on the West Coast can still be arranged, and District banks are able to defer reserve adjustments until late in the day. ELEVENTH DISTRICT FEDERAL FUNDS TRANSACTIONS. BY FEDERAL RESERVE DISTRICTS· SEPTEMBER 1959 - AUGUST 1961 PURCHASES SALES ALL OTHER 5% Purchases and sales of Federal funds from the various Federal Reserve districts evidenced a changing pattern over the 24-month period. Purchases of Federal funds from New York City were reduced substantially, " N,wYorkCllrl. tt.ol. d O. 0 •• pora'. dl. rrlc t bl eau., ol ll.lmportanc . ln Ih. r,du ol 'und. mar .... '. while sales to New York City expanded. Eleventh District purchases from the San Francisco District increased sharply, and sales to the San Francisco District moved moderately higher. Federal Reserve banks. No matter where the parties are located, however, the terms of the transactions and the There were also some shifts as to the institutions with interest rates to be charged are matters of individual which the District banks completed transactions. Disnegotiations between the parties. One-day unsecured trict Federal funds transactions have been primarily loans provided 88 percent of District purchases bewith other banks, but there was a noticeable increase in tween September 1959 and August 1961, while acsales of Federal funds to Government security dealers counting for only 21 percent of District sales. over the 2-year period. The proportion of sales to GovUntil 1958, loans in Federal funds were subject to ernment security dealers rose from slightly more than 2 percent in the last 4 months of 1959 to as much as 26 the limitation requiring that no loan could be made to percent in the 4-month period from January through a single borrower for an amount in excess of 10 percent April 1961. This shift resulted primarily from the in- of the bank's capital and surplus. However, according creased demand from Government security dealers to to an April 1958 ruling by the Comptroller of the Currency, this limitation is removed on loans to a single finance large inventories. Federal funds transactions on a I-day basis take three basic forms: an unsecured loan, a secured loan, or a repurchase agreement. The I-day unsecured loan is referred to in the market as a "straight" transaction. It is the simplest arrangement, requiring a minimum of bookkeeping and no handling of securities. If the parties to the contract are located in the same Federal Reserve district, a telephone call to the regional bank, requesting a credit to the reserve account of the borrower and a debit to the reserve account of the seller, is all that is necessary. (Actually, written confirmation or instructions must follow the telephone conversation, and in New York City an exchange of checks is required.) The next day the procedure is reversed, with the reserve account of the borrower being debited and the reserve account of the seller credited. If the principals are located in different Reserve districts, the transaction can be handled through the wire-transfer facilities of the ELEVENTH DISTRICT FEDERAL FUNDS TRANSACTIONS. BY TYPE OF ACCOUNT SEPTEMBER 1959 -AUGUST 1961 PURCHASES GOVERNMENT -----==~ SECURITY DEALERS 1% SALES GOVERNMENT SECURITY DEALERS 15% BANKS 99% BANKS 84% BUSINESS REVIEW 11: 1961 I 51 TYPES OF FEDERAL FUNDS TRANSACTIONS ELEVENTH FEDERAL RESERVE DISTRICT SEPTEMBER 1959 - AUGUST 1961 PURCHASES REPURCHASE AGREEMENTS 2 % in the Eleventh District reveals that the proportion of total sales accounted for by repurchase agreements showed an especially sharp gain over the 2-year period. This rising proportion of repurchase agreements is probably a further reflection of the increased importance of Government security dealers on the demand side of the market. SALES I-DAY I - DAY UNSECURED SS% I-DAY SECURED 32% One further characteristic of the District Federal funds market deserves some comment. The market is especially active in the reserve cities of Dallas, Houston, and San Antonio; but moderate activity is noticeable in Shreveport, El Paso, and Fort Worth. In terms of banks, there is even greater concentration. Only six banks account for almost 89 percent of District purchases. Sales are only a little less concentrated, with seven banks providing the funds for about 75 percent of the total sales. The Federal funds market has proved to be an efficient instrument for short-term loans and borrowings. borrower if the loan is secured by Government securities maturing within 18 months. A Federal funds trans- Banks have found it convenient as a means to adjust action of this type is called a secured loan, with Govern- reserve positions or to carry a temporarily enlarged inment securities serving as collateral for the loan. The vestment portfolio as long as the rate of return is above borrower places the Government securities in a custody the cost of purchasing Federal funds. Bank purchases account for the lender until the funds are repaid, and of Federal funds are, in a sense, a substitute for borrowtitle to the securities is unchanged. Secured loans ac- ing at the Reserve bank but, in another way, are greatly counted for 8 percent of District purchases but 32 per- different. Discounts at the Reserve banks place new reserve funds into the banking system, while Federal cent of sales by banks in this area. funds activity merely changes the ownership of funds The third type of Federal funds transactions is a re- which already exist in the system. The broadening of purchase agreement. In the repurchase agreement the the Federal funds market to include dealer financing lender of Federal funds buys a security, but the bor- has further increased the efficient utilization of existing rower of the Federal funds (the seller of the security) funds. agrees to repurchase that security at a specified date in The District banks apparently are finding the Fedthe future, usually 1 day, with settlement to be made eral funds market of considerable value and, with the in Federal funds. Title to the Government security actually passes to the seller of Federal funds (the pur- knowledge gained by participating in it, can be exchaser of the security). Repurchase agreements ac- pected to increase their use of the market. However, counted for 2 percent of District purchases but 45 per- some restraining factors should be considered in forecasting increased use of the Federal funds market. If cent of sales in the 2-year period. alternate sources of funds for reserve adjustment The changing proportions of the various types of or yields on other investments become more attractive, Federal funds transactions can be explained largely on banks may shift from the use of Federal funds transacthe basis that bank purchases are usually I-day un- tions. The availability of reserves is always a limiting secured loans to adjust reserve positions. In contrast, factor, and reserve positions can shift with the demand sales to Government security dealers are traditionally for credit and the monetary policies of a particular repurchase agreements. Some secured loans are used by moment. Nevertheless, the Federal funds market has both banks and dealers. The overwhelming importance achieved a remarkable expansion over the post-accord of banks in District purchases supports this reasoning. period and seems destined for greater use by banks and The greater simplicity of unsecured and secured loans security dealers. has reduced the former emphasis upon repurchase WILLIAM N. GRIGGS agreements. However, an analysis of the data gathered Financial Economist I I6 BUSINESS REVIEW 11 : 1961 BUSINESS REVIEW BUSINESS, AGRICULTURAL, AND FINANCIAL CONDITIONS Primarily reflecting the effects ~xpected. to be slightly higher than in 1960, with an of Hurricane Carla, the Texas Increase '~ the orang.e crop more than offsetting a industrial production index de- decrease In grapefrUIt production. clined to 172 in September. In t~e 4 weeks ended October 18, investments and Nonagricultural employment in deposIts .ex~a~ded, while loans declined moderately the five southwestern states rose fractionally at the D,strrct s weekly reporting member banks. during the month, while unemployment in Texas deMember bank reserves increased in the 4 weeks creased. The value of construction contracts in the ended October 4 and continued at a comfortable Eleventh District states rose $17 million in August to level. reach $355 million. District department store sales in September and Daily average crude oil production decreased in early October were slightly above a year ago whil early October, after increasing slightly in September. cumulative s~les for the year showed no chang~ fro~ Crude runs to District refinery stills declined in Sepa year earl,er. Department store inventories rose tember but advanced moderately in early October. about seasonally during September and at the end of .Drilling activity during September showed the month were slightly higher than at the same time in Improvement. 1960. New car registrations in four major market areas in Texas declined substantially in September Fall harvesting activities moved ahead rapidly throughout the District during October. Cotton pro- from both the previous month and a year ago. Cumuduction in the District states is estimated to be up from lative registrations for the first 9 months of 1961 were last year, while outturns of grain sorghums and rice 16 percent lower than in the comparable period last are indicated to be lower. Output of citrus fruits is year. Department store sales in the were slightly higher than in September 1960. The seaEleventh District were adversely sonally adjusted index of stocks at the end of Septemaffected by Hurricane Carla dur- ber ~as 191 percent of the 1947-49 average, up from ing the first half of September but 190 ill August and 189 a year earlier. Orders outstandrecovered in the latter part of the ing at the end of September continued above a year month to show a net gain of 1 percent over September ago, and new orders placed during the month were 5 1960. However, after adjustment for seasonal trends percent greater than in September 1960. and differences in the number of trading days, total DEPARTMENT STORE SALES sales were less than the record August level. The ad(Porcontage change In retail valuo) justed index of department store sales was 175 percent September 1961 from of the 1947-49 average in September, compared with 9 months, August Septe mber 1961 from 184 in August and 173 in September 1960. Sales in 1961 1960 1960 Area the District during the first 2 weeks of October were 4 Total Eleventh District . • . .• . .•. 1 -14 1 percent above a year ago. Cumulative sales for the year Corpus Christi .... ... . ....... . -14 4 -5 Dallas •.. .. . ••... . .. . ... .. .. -13 o -2 through October 14 showed no change from the com- EI Paso •. .. . ... . . . ....... . .. -4 -5 -2 -20 1 Fort Worth • •.. . . .... . . . •... • 5 Houston •• •• ......... .. • .••• -12 5 4 parable year-earlier period. 3 San Antonio •• •.••••••• • •• .• • -17 1 District department store inventories rose about seaSonally during September and at the end of the month Shroveport, La •• ... .........• a o -10 Waco ••.. ..... ... ... ... . .. . -14 -15 Other citi es • . ... . . . ....... . • 4 4 1 o BUSINESS REVIEWI 11: 1961 INDEXES OF DEPARTMENT STORE SALES AND STOCKS Eleventh Federal Reserve District (1947-49 = 1001 SALES (Daily average) STOCKS (End of month) Date Unadjusted adjusted Unadjusted Seasonally adjusted 1960, September..... 1961, July . .... . • ••• . August.. . ..... September.. .. . 166r 158 181r 168 173r 178 184r 175 200r 173 190 202p 189 182 190 191p Seasonally r- Revised. p - Preliminary. New car registrations III September in four major Texas market areas - Dallas, Fort Worth, Houston, and San Antonio - declined substantially from both the preceding month and September 1960. Year-toyear declines ranged from 24 percent in Houston to 28 percent in San Antonio, while September registrations were down 30 percent to 40 percent from August in the four areas. Cumulative registrations in the four markets for the first 9 months of 1961 were 16 percent less than in the comparable period last year. Harvesting activities progressed rapidly throughout most of the District during October in typical autumn weather. Scattered light to heavy showers at midmonth over much of the central and northern parts of Texas caused the only major interruption in field work. More than one-half of the District's cotton crop has been baled, or about 10 percent ahead of a year ago. Growers in the Southern High Plains have been using all available means to harvest the crop as soon as the bolls open. An early-October frost resulted in light damage to late-crop cotton but also speeded drying of the lint and helped in defoliating plants throughout the western Plains areas. Cotton production in the District states, as of October 1, is estimated at 6.6 million bales, which is 30,000 bales below the month-earlier forecast but is 3 percent above the 1960 output. Month-tomonth reductions in indicated output in Texas and Oklahoma more than offset improved crop prospects in Arizona and Louisiana. Increases over the year-earlier outturns are estimated for all of the District states except Arizona and Oklahoma. Combining of grain sorghums in the Southwest is about three-fourths complete, although harvest of the High Plains crop has progressed slowly because of cool, damp weather. Grain sorghum production in the District states is indicated to be 12 percent below the 1960 I BUSINESS REVIEW Is 11: 1961 output. The reduction in acreage as a result of the feed grain program has been partially offset by higher yields. Rice growers in Louisiana and Texas have taken advantage of the near-ideal working weather, and the major portion of the crop has been combined. Prior to Hurricane Carla, the southwestern rice crop was indicated to be 5 percent above a year ago but is noW estimated to be 3 percent below the 1960 outturn. Virtually all of the reduction in prospective output occurred in Texas. Over one-half of the District's peanut crop has been harvested. Heavy showers in the important Cross Timbers area slowed digging of nuts and resulted in some spoilage of peanut hay. Peanut production in the Southwest is indicated to be down slightly from a year ago. Harvest of pecans is under way in most of the major areas; however, output is estimated to be considerably smaller than in 1960. Heavy pecan losses occurred in south-central and upper coastal counties of Texas as a result of the hurricane. More than 80 percent of the District's winter wheat crop has been drilled, but fields in the High Plains are badly in need of moisture. Over one-half of the winter oat acreage has been seeded, and the crop in the Cross Timbers and Blacklands is expected to make rapid progress as a result of moisture received in October. Picking of citrus fruits has begun, and production in the Southwest is estimated at 14.3 million boxes, or 2 percent more than in 1960. Indications are that an increase in the output of oranges will more than offset a decrease in the grapefruit crop. Although the hurriCROP PRODU CT ION (In thousands of bushe ls) =TEXAS FIVE SOUTHWESTERN STATES' 1961, 196 1. Average estimated Crop Oct. 1 1960 1950-59 Oct. 1 1960 1950-59 Cotton' ........ . 4.550 26.264 86,856 26, 190 9,528 368 11,676 229,635 1,610 2.261 228,000 2,738 1,190 33,000 4.346 27.522 78,826 24,492 9,518 310 12,927 258.552 1,112 2,166 223,725 2,465 1,200 31,000 3.910 38.502 32,891 26,202 3,549 240 13.331 149,134 501 1,821 173,368 1.662 1.246 32,270 6.615 41.760 208,042 43,600 39,706 1,103 25,4 16 261,531 1,610 6.445 44.456 206,434 39,623 37,184 1,285 26.209 297,623 1,135 6,631 392,161 5,572 4,531 95,000 5.894 61.366 104,031 42,034 18,239 933 25,846 171,361 580 5.408 278,320 3.817 6,307 69,367 estimated Corn • . .... . ..• . Winter wheat •••• Oats . ....... ... Barley . . ....... Rye .. .......... Rice s••••• .••••• Sorghum grain •.. Flaxseed . ..• ... Hay· ..... .. .... Peanuts li •• •••••• Irish potatoes/) . .• Sweet rototoes6.. Pecans . ...... . . 1 Arizona, Louisiana, New Mexico, Oklahoma , and Texas. o In thousands of bales. In thousands of bogs containing 100 pounds each. 3 4 li ~,895 389,200 6,263 4,639 84,700 In thousands of tons . I n thousands of pounds. a In thousands of hundredweight. SOURCE, United Statcs Department of Agriculture. Average - cane caused only slight injury to trees in the Lower VaIley of Texas, some fruit was lost or damaged. Adequate moisture supplies throughout most of the north-central, central, and eastern parts of the District are expected to result in early growth of lush, coolseason vegetation. Meanwhile, extended late-summer grazing has prevailed throughout most of the Southwest. Only scattered ranges in far western areas and in limited sections in southern counties are in urgent need of moisture. Movement of cattle onto early wheat fields has started in the Northern High Plains of Texas. Loans, investments, and time and savings deposits advanced at the Nation's weekly reporting member banks, while demand deposits adjusted declined moderately during the 4 weeks ended October 11 . The money market remained relatively easy in most of this period, reflecting the comfortable reserve position of member banks, but a firmer tone developed in the last week. The rate on Federal funds showed considerable fluctuation, ranging from 3 percent on September 20 to % percent on October 3, The auction rate on 91-day Treasury bills rose moderately during early October but then declined to 2.325 percent for the issue dated October 26. The large yield differential between the 91-day and 182-day bills continued during this period, perhaps reflecting the sizable dealer awards of the I-year bill issue. The intermediateand long-term Government securities market was in~uenced by the multiple Treasury financings, with tradIng arising mainly in swap transactions. Investments, demand deposits, and time and savings deposits expanded at the Eleventh District's weekly reporting member banks in the 4 weeks ended October 18, while loans (including interbank loans) declined moderately. Cash accounts and total assets moved to higher levels. CONDITION STATISTICS .OF WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES Eleventh Federal Reserve District (In thou sands of dolla rs ) Oct. 18, 1961 Ite m Sopt.20, 1961 ASSETS Comme rcial and industrial loans • •• •..• •.•• . . • '1 ,670,158 Agricultural loons . • • . •.•• • . •• •..•. • • • • • .•• • 38,977 Loans to brokers and dealers for purchasing or carrying : U. S. Gove rnm ent securities • .• ...•• • • • . • •• • 274 Other securities •• •• • •• .•••. . •••• • •• •• • • • 63,753 Othe r loons for purchasing or carrying : U. S. Government securities • •• •. • . •• • • •••. • 3, 198 Other socuritles •• •..• ••• . •• .. • ..•••..••• '161,973 loans to dom estic comm ercia l banks •• • • .•. •• •• 43,536 loons to foreign banks • • • •• •.. • • • •• •• • • . ••• 127 Loans to oth e r flnanclal institutions: Solos ilnance, pe rsonal #lnance, e tc .• • •.•••.• '90,728 Savings banks, mtg e . cos., in s. cos., e tc .... .. . '199,5.82 Re al-es tate loans .• • .. • •..• •• •. .• •• ...•• •• . 235,355 All oth e r loans •• •.•• •• . •. •.• • • .•. •• • ..• • .• ' 721,304 Oct. 19, 1960 1,577,858 39,049 1,547,007 33,384 20,326 61,407 3,274 2 1,681 4,67 4 229,063 81,042 362 8,793 174,75 1 26,13 1 505 90,422 157,741 233,499 760,381 98,410 122,368 206,211 753,250 Gross loans •• • • • ••.. •• ..•• • ...• • . •• . . . • Less reserves and unallocate d charg e-offs •. 3,22 8,965 54,594 3,255,824 54,993 2,995,765 5 5,208 Net loans .. . . . . . . . ...... . . .. .. ... . .. . . . 3,174,371 3,200,831 2,940,557 Trea sury bills ••• . • •. . ••..• • •.. • •..••• •• ..• Tre asury ce rtificates of ind e bte dn ess •. . . • •••.• Tre a sury notes ond U. S. Governm e nt bond s, including guarantee d obligations, maturing : Within 1 ye ar •.•• . •.. • • ••••.•• •. •.•• ..• Afte r I but within 5 ye ars .. .. . ...... . .... . Aftor 5 ye ars .... .. ....... ....... . .. .. . . Othe r se curities . •• . •• •. • • . •• . • .• . . • . •..•.. 185,209 55,563 105,208 55,564 5 4,987 30,821 243,060 689,343 427,769 413,534 228,995 663,136 44 4,588 420,901 109,537 777,271 323,281 356,169 Total inv estm e nts ••. . . .. . . •. . • • . • . . ... .. . 2,014,478 1,918,392 1,652,066 Cash it e ms in proc ess of coll e ction •. •• . .. . .... 541 ,806 495,239 2,133 58,331 591,512 192,603 531,811 534,406 2,457 59,890 555,084 182,077 519,291 564,765 2,179 52,431 518,510 196,827 7,070,473 6,984,948 6,446,626 3,025,055 3,030,947} Balances with bonks in the United States •.. .... Balances with bonks in fo reign countries . ••.... Curre nc y and coin • .. . .. • •. • •. • . •..• •. •• . " Reserves with Fe d e ral Res erve Bank ••• •...... • Oth e r asse ts ••••.. • •.••. • . ••. • • .••. ••••••• TOTAL ASSETS • • • •• •• •• •.••.• • •.••• . • LIABILITIES AND CAPITAL ACCOUNTS De mand d oposits Individuals, partnership s, ond cor~or?ti~n s .... Foreign gove rnments and ofAcial msfltutl ons, central banks, and inte rnational institution s.. United States Gove rnm e nt • • • • • .• ••• . ••• •• States and political subdivisions •..••• • •• • .. Banks in th e United Sta te s, including mutual saving s banks ••• • . .• ..•.•. • • • • • . Banks In fo re ign countri es • . • •. • •..• ••• ...• Cerllfle d and afflce rs' checks, e tc .. . . .... .. . 4,091 237,7 18 162,259 3,236 124,817 191,923 7 2,108 178,949 1,134,769 13,007 45,581 1,105,168 13,432 51,004 1,050,521 21,505 45,461 Total demand de posits •••.• ••• .••• . .• •• 4,622,480 4,520,527 4,322,394 Time and saving s depo sits Ind ividuals, partn erships, and corporations Savings d e posits . •• .• • .. ••.• . •••.• . • . • Oth e r tim e d e posits ••. • • • ...• . . . •• •.• • • Fore ign gove rnments and offlcial in stitution s, ce ntral ban ks, and Int e rnati onal institutions .. U. S. Gove rnm e nt, Including postal savings • . • States and political subdivisions •• ••••.•• • •• Banks in th e Unite d States, Including mutual saving s banks •••.. • • • . • • • • •••• . • Banks In for e ign countries • •••• . •• • •..•••.. Total time and savings deposits •• •••• • • • • 2,953,850 7 89,518 565,281 780,811 } 560,7 27 1,008 7,077 287,654 1,008 7,077 293,680 6,369 1,200 1,658,107 6,425} 1,200 1,650,928 1,154,083 10,307 226,525 10,395 1,401,310 Gross loans (excluding interbank loans) rose $10.6 Total deposits •••...• ••• .•••.•. • •••• 6,280,587 6,171,45 5 5,723,704 94,000 126,750 Bills payabl o, rediscounts, etc .. . .. . . . ... . ... . 50,169 miIIion in the 4 weeks; whereas, in the comparable 89,755 95,395 109,447 All othe r liabilities . • ••••••• .. . •. • •• . ..•.• • • 600, 491 596,988 Capital accounts •••..•.... • •.. •••••• . ••••• 563,306 period of 1960, such loans declined $7.0 million. An 6,984,948 TOTAL LlABtLiTIES AND CAPITAL ACCO UNTS. 7,070,473 6, 446,62~ explanation of the internal breakdown of the loan ad1 Be cause of re cont roclassi fication s, theso data are not strict ly comparab le w ith vance this year is complicated by some major reclassiprior data . NOTE. - As a res ult of chang es in call re port instruction s, additional information Is fication of accounts. a vailabl e, e ffec ti ve Aprlt 26, 1961, on th e de posit structuro of me mb e r ban ks . Com· parabl e ye ar- e arlier figures will be shown whe n th e y be com e a vailable . Total investments at the District's weekly reporting banks increased $96,1 miIIion during the 4 weeks ~nded October 18, Holdings of Government securities in Treasury bills. Major District banks bid very heavily Increased $103.5 miIIion, with $80.0 miIIion centered on the $2,5 biIIion of June Tax Anticipation bills which BUSINESS REVIEW 11 :1961 I 9/ declined at reserve city banks. Borrowings remained at a nominal level throughout the District. RESERVE POSITIONS OF MEMBER BANKS Eleventh Federal Reserve District (Averages of daily flgures. In thousands of dollars)' item 4 weeks ended Oct.4,1961 5 weeks ended 4 weeks ended Sept. 6,196 1 Oct. 5,1960 580,083 538,679 41,404 574,031 6,052 107 5,945 571,397 531,993 39,404 563,882 7,5 15 0 7,515 550,574 54 1,010 9,564 546,005 4,569 8,000 -3,43 1 518,893 412,896 105,997 452,237 66,656 1,134 65,522 510,771 409, 127 101,644 449,125 6 1,646 3,176 58,470 451,938 422,923 29,015 392,765 59,173 13,176 45,997 1,098,976 951,575 147,401 1,026,268 72,708 1,241 71,467 1,082,168 941,120 141,048 1,013,007 69,161 3,176 65,985 1,002,512 963,933 38,579 938,770 63,742 21, 176 42,566 RESERVE CITY BANKS Totol reserves held . .. . . .. ••. .. With Federal Reserve Bank .•. • Currency and coin . ..... .. ..• Required reserves • . ••..•...... Excess reserves • • ••• •• ••• • •.•• . Borrowings •• ••••••••• • ••••••• Free reserves . . . ..•.. ... . . •• . • COUNTRY BANKS Total reserves held . • . •.•.••.•• With Federal Reserve Bank... . Currency and coin .. •.. . •... . Required reserves .. •. •.• . •• . • . Excess reserves . . .. . . ....•.. .. Borrowing s• • ••• • ••• • ••••••••• Free reserves . . . • . •.•• . •• . •••• All MEMBER BANKS Totol reserves held •• . ••.. . .. .• With Federal Reserve Bank... . Currency and coin • ...•.••••• Required reserves • .. •. .. .....• Excess reserves . . •. • . ••.•• . •.• Borrowings • . . . .... . .. .. •• .. .• Free reserves . • ..• •• .. .•.•.•. . NOTE. - 8eginning November 24, 1960, a ll currency and coin held by membe r banks allowed as reserves; during the period December 1, 1959·November 23, 1960, only part of such holdings was allowed. were offered on September 12, and the District ranked behind only New York and Chicago in offers accepted. For the reopened 3¥4 -percent May 1963 note offering of $2.0 billion, District subscriptions accepted ranked eighth in the System. However, for the $2.0 billion of 364-day Treasury bills dated October 16, 1961, the District banks' purchases were tenth among all districts. Non-Government security holdings of the District's weekly reporting banks declined slightly during the 4-week period. In the corresponding period in 1960, total investments decreased $12.5 million, with a large decline in United States Government securities more than offsetting a significant increase in holdings of nonGovernment securities. In the 4 weeks ended October 18, total demand deposits expanded $102.0 million at the weekly reporting member banks in the District. A significant gain was recorded in demand deposits of the United States Government, as banks credited Tax and Loan Accounts for some of their major purchases of new Treasury securities. Time and savings deposits increased $7.2 million, primarily as a result of an increase in deposits of individuals, partnerships, and corporations. Such deposits of states and political subdivisions moved somewhat lower. Total reserves increased $16.8 million at the District member banks during the 4 weeks ended October 4. Excess reserves advanced at country banks but BUS I N ESS REVIEW 10 11 :1961 New supplies of crude oil exceeded demand in September, resulting in a slight rise in national crude oil inventories. In early October, however, District and national crude oil production was reduced, and crude oil imports declined; but crude runs to District and national refinery stills, recovering from the effects of Hurricane Carla, advanced moderately. The Texas crude oil allowable for November has been established at 8 producing days for the seventh consecutive month, and Louisiana and New Mexico have retained their October schedules. Nevertheless, a slight increase is expected for District daily average output in November because of the fewer calendar days in the month. District drilling activity showed improvement during September as both total well completions and total footage drilled increased moderately. However, the number of active rotary rigs declined about 5 percent. Refined product markets weakened in September but recovered significantly in early October. The seasonally adjusted demand for the four major products declined to 102 percent of the 1957-5 9 base in September from 109 percent in August, as greater than seasonal reductions were recorded for each of the products, especially light fuel oils. In early October, however, the demand for the major pertroleum products rose more than seasonally, paced by significant advances in both light and heavy fuel oil consumption. Inventories of the major refined products advanced only slightly in September, primarily because of the reduction in refinery activity. The upward trend continued in early October, with NATIONAL PETROLEUM ACTIVITY INDICATORS (Seasonal ly adiusted indexes, 1957·59 Indica tor = 100) August 196 1p September 1960 102 106 104 102 103 126 97 95 102 109 107 101 82 102 CRUD E Oil RUNS TO REFINERY STil lS (daily a verage) .. ................... DEMAN D (daily a verage) Gasoline........................... Distillate fuel 011.. .. ....... .... .. .. .. Resi dua l fue l oil . ... . . . ... . . .. .. • . . . • 101 92 Four reflne d products . . • • • . . . . • . . . • 102 105 197 126 98 109 STOCKS (end of mo nth) Gasoline .. ....... . ............ .. .. . Kerosene. • • . . .. .. • . . .. .. . . .. .. .. • • Distillate fuel oil............. . .. .. . . . Residual fuel oil. .. .... • ••••• . ••• • ••• Four reflned products . • • • • • • • • • • • • • 106 108 100 82 101 106 107 96 BO 99 Kerose ne. . . • . . . . . . . . . . . . . • • . . . . . • . p - - September 196 1p Pre limina ry. SOURCES, America n Petro le um Institute. United Sta tes Bureau of Mines. Federa l Reserve Bank of Dallas. 138 MARKETED PRODUCTION OF NATU RAL GAS NONAGRICULTURAL EMPLOYMENT (In millions of cub ic feet) Five Southwestern Stotes ' Second quartor First q uarter Secon d quarter Area 1961 196 1 1960 louisiana . ... . . . .. . ..... ... . New Mexico . . ...... .. . ..... . Te xa s . .. ........ . . .. . . .. . . . 739,700 189,600 183,500 1,446,400 809,300 206,300 228,900 1,580,000 658,300 198,200 180,000 1,4 18,200 Total ••• • •••. . • • • • ••..• . .. 2,559,200 2,824,500 2,454,700 Oklahoma • • • •• •••. .. • . .•••• Percent change Number of persons Sept. 196 1 from September 196 1e August 1961 September 1960r Aug. 196 1 Sept. 1960 4,504,300 774,300 3,730,000 242,300 300,500 4,490,400 774,200 3,716,200 245,100 308,400 4,497,400 785,900 3,7 11 ,500 244,500 3 19,300 0.3 .0 .4 -1.2 -2.6 0.2 -1.5 .5 - .9 -5.9 389,500 1,102,200 223,400 607,800 864,300 Type of employment 391,600 1,102,200 224,700 610,900 833,300 404,600 1, 102,900 215,700 585,900 838,600 - .5 .0 -.6 -.5 3.7 -3 .7 - .1 3.6 3.7 3.1 Tota l nonagricultura l wage and salary workers • • Manufacturing • •. • ••..• .• Nonm anufa cturing • • ••.•• • SO URCE , United States 8ureou of Mines. Mining •• • • • • •••• • • • . • Construction • •• • • • • • • • • Transp orta tion a nd both refined product supply and demand increasing. Prices for light fuel oils were steady in the interior markets, while kerosene and distillate fuel oil prices on the Gulf Coast were exceptionally firm . However, retail gasoline price reductions were noted in many areas of the country. p ublic utilities • • •• • • •• Trado . ..... . . .... . . . . Finance •.. . . ... . ...... Service .. . . . ... ... . ... Government . ... . . . . . . . 1 Arizona, Louisia na, 0 - Estlmatod. r - New Mexico , Ok la hom a, and Tex as. Re vised . SOU RCES, Sta te omployment a gencies . Fe de ra l Rese rve Bank of Dallas. Hurricane Carla was primarily responsible for the reduction of the Texas industrial production index to 172 in September, the lowest figure since February 1961. The decline of 7 points from the August level resulted from the reduction in the manufacturing sector; durables declined almost 5 percent, and nondurables, over 8 percent. Decreases of more than 8 percent from August were registered in the output of petroleum and coal, chemical products, machinery (except electrical), and other nondurable goods. Paper products showed a significant output advance, and mining output rose slightly. With production in most major sectors back to normal by the end of September, a substantial recovery in the index is likely for October. ing of schools, a rise of 31,000 in government employment offset moderate declines in construction and mining employment, which were partially affected by Hurricane Carla. The withdrawal of students from the labor force to resume school and the return of school employees to work were primary factors in the September decrease of 12,600 in Texas unemployment. September unemployment in the State was 5.1 percent of the labor force, compared with 5.4 percent a month earlier and 4.6 percent a year ago. Insured unemployment in Texas declined in September and early October except in the week ended September 20, when unemployment increased as a result of storm-induced work interruptions. The value of construction contracts in the District states increased $1 7 million in August to $355 million. Total nonagricultural employment in the five south- Increases in residential and nonresidential building offwestern states in September totaled 4,504,3 00, or set a decline in public works and utilities during the 13,900 above the previous month and fractionally month, as well as in the January-August period. Cumuabove a year ago. Associated principally with the open- lative contracts for the first 8 months of 1961, at $2,769 million, were $92 million above the same period in 1960. INDUSTRIAL PRODUCTION (Seasonally ad justed indexes, 1947·49 Area an d type of Index TEXAS Total Industria l prod uction. . ...... Total ma nufactures . ... . ....... . Durab le manufactures. . . . . . .. . .. Nc;>n urab le manufac tures . • . . • • . • .d Mini ng. . . . .. .. ...... . . .. . . ... UNITED STATES To tal Industria l production.. . . . •• • Tota l manufactures . • • • •• • . . • • . • Durable manufactures . . • . • • • • • • • = 100) VALUE OF CONSTRUCTION CONTRACTS September 196 1p Aug ust 1961 July 1961 172 209 249 191 136 179 225 260 209 135 178r 225 257 21 1r 133r 174 216 252 200 132 169 168 17 1 171 170 175 169 129 310 170 169 175r 168r 129 306r 162 160r 166 159 127 293r (I n millions of dollars) Se ptember 1960 j a nuary- August Nondurable ma nufactures. .. ..... 170 Mining. . ... . . .... ........ .. . . Utilities. . ... . ..... ...... . . .. . . 129 3 14 Area an d ty pe FIVE SOUTHWESTERN STATES' • • . . • ••. •• •• •• •• Residentia l building • •• •• • • Nonresidentia l building •••• Public works a nd ullllties • • • UNIT ED STATES • • • .• • •••• •• Resid ential buil ding • .•• • •• Nonresi dentia l building . . . . Public works a nd ulilitles•.• 1 P r - August 1961 p 355 161 98 96 3,543 1,589 1,087 866 J uly 196 1 338 139 94 104 3,529 1,502 1,154 873 August 1960 1961 p 1960 342 133 136 73 3,295 1,433 1,177 6B5 2,769 1,129 873 768 25,248 10,844 8,205 6, 198 2,672 1,077 793 801 24,399 10,347 8,104 5,948 Arizona, Louisia na , Ne w Mexico, O klahoma, a nd Texas. Pre li mi nary . Preliminary. p - Revi sed. NOTE. - Deta ils may nol odd to totals beca use of rounding . SOU RC E, F. W. Dodgo Co rporati on. SOU RCES , Board of Governors of the Federa l Reserve System. Federal Reserve Bank of Dall a s. BUSINESS REVI EW 11: 1961 I BANK DEBITS, END-Of-MONTH DEPOSITS AND ANNUAL RATE Of TURNOVER Of DEPOSITS CONDITION STATISTICS Of ALL MEMBER BANKS E(eventh federal Reserve District (Dollar amounts in thousands) (In millions of dollars) Debits to demand Demand d eposits l de posit accounts! Perc ent change from Annual rat e of turnover Au g. 1961 Se pt. 1960 Se pt. 30, 1961 Se pt. 1961 Aug. 1961 Se pt. 1960 6 $ 135,507 21.5 21.2 22 .6r 4 -4 49,521 170,588 21. 1 21 .8 21.4 22.1 19.9 21.8 7 34,799 16.2 16.0 241,639 Tucson ••••. .. . .. ...• $ LOUISIANA 86,314 313,601 Monro e .•...... . . . .. Shr eveport • . ... . . ... -4 -3 46,702 -5 -10 -15 - 1 -9 6 -6 -12 -6 - 21 -10 2 2 - 5 -1 -11 3 -6 6 -2 Total-24 cities . •. . . . • • $9,482,076 -8 Austin .. ... .. . .... .. Beaumont • •• . .... .. . Corpus Christi . .. ..... Corsi cana ....... . . . . Dalla s • • •.••. ....... EI Paso •. ••• . .•. .. . . Fort Worth .. .. . ..... Galveston ........... Houston •••• . . . .. .. . lare do . . . . .. .. .. ... Lubbock •.•. .. .. . ... Port Arthur ... . ... ... San Ang elo •• .... •. . San Antonio .. ... .. . . Texarkana 2 ••••• • ••• Tyler ........... .. .. Waco .. .. .... ... . .. Wichita Falls • . . .. .• . 1 ASSETS Loans and discounts . . ........ .. .... .. . . . United Stat es Government obligation s... . .. Other securities .... . . ..... ... • ... . .. . . . Re serves with Fed eral Reserv e Bank • .. ..... Ca sh in va ull e •.... .. .... • . . .. . .... .... Balance s with banks in the United States. ... Balances with banks in foreign countri ese.. . . Cash items in proc ess of collection • • . . .. ... Other a ssetse ••• . .... . . ... . . . . ... .... .. 5,388 2,994 1,022 894 172 1,150 3 574 303 5,175 2,713 946 913 164 1,024 3 500 271 4,944 2,426 821 908 153 1,047 2 520 283 12,500 11,709 11 ,104 Time deposits ••. • . . .. . . ..... .. . .. .. • ... 1,274 7,048 2,871 1,142 6,560 2,790 1,172 6,393 2,332 Total deposits ................. . .. . .. Borrowing se . ••.• . . .. . .... .. .. . .. .. ..•. Oth er liabilitiese ••. . . . . .. ... .. .. . .. . ... Total capital accounts o . .... . ..... .. .... . 11,193 97 150 1,060 10,492 77 111 1,029 9,897 99 146 962 TOTAL LIABILITIES AND CAPITAL ACCOUNTSe • • ••• ••• • ••••• • ••• ••• • 12,500 11,709 LIABILITIES AND CAPITAL ACCOUNTS 93,298 213,062 223,928 163,993 195,282 18,174 2,865,440 314,188 762,862 80,184 2,605,827 26,993 177,700 62,328 54,812 604,235 23,661 82,928 111,894 113,031 Amarillo . .. . . ... ... . ---- -3 ° 11 8 1 -2 2 -4 -1 3 2 ° ° ° -3 1 -1 3 4 3 68,609 119,874 152,966 97,483 109,029 19,307 1,181,674 166,787 385,083 59,149 1,340,468 21 ,591 109,181 43,141 48,135 383,405 16,598 61,426 67,179 103,991 ---$4,945,491 16.6 21.8 17.6 20.2 21.2 11.4 29.0 22 .6 24.0 16.2 23.5 15.0 19.6 17.2 13.7 18.8 17.0 16.3 19.8 13.3 17.5 24.1 20.8 20.2 23.5 10.9 30.5 25.6 25.6 20.2 26.4 14.5 19.0 17.8 13.8 20.4 16.3 17.4 18.4 13.9 17.9 22.6 16.8 19.0 21.6 12.0 29.3 24.1 25.2 15.8 24.4 15.1 20.4 17.5 14.2 19.7 16.4 17.5 18.7 13.8 23.0 24.8 Demand d eposits of banks . .• .... ••• . •••• 23 .6r Other d emand d e posits .... .. . .. .... . .... e - Estimated . GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS Eleventh federal Reserve District (Av erag es of dail y figuro s. In million s of dollars) De posits of Individuals, partnerships, and corporation s and of states and political GROSS DEMAND DEPOSITS subd ivis ion s. " These flgures include only two bonks in Tex arkana, Tex as. Total de bits for all ban ks in Texarkana, Texa s- Arkan sas, includ ing on e bank lo cated in th e Eighth Di strict , amounted to $54,592 ,000 for th e month of Se ptember 1961. r - CONDITION Of THE fEDERAL RESERVE BANK Of DALLAS Dato Total city bonks 7,779 7,577 7,643 7,752 7,770 7,759 7,889 3,858 3,8 14 3,743 3,829 3,832 3,820 3,910 3,921 3,763 3,900 3,923 3,938 3,939 3,979 Res erve Jun e • ..... July ....... August •• •• Se ptember. (In thou sands of dolla rs) Item Oct. 18, 1961 Se pt. 20, 1961 706,358 1,240 116 1,136,585 1,137,941 966,562 851,669 664,128 4,195 58 1,113,228 1,117,481 911,537 850,216 647,121 10,419 1,276 1,079,017 1,090,712 902,644 817,069 Total Reserve city banks Country banks 2,113 2,317 2,736 2,745 2,757 2,774 2,787 1,087 1,170 1,382 1,380 1,384 1,396 1,404 1,026 1,147 1,354 1,365 1,373 1,378 1,383 Oct. 19, 1960 Total gold certificate reserves . .. •..... .. ... . Di scounts for me mb er banks • . . . ... .... . ... . Oth e r discounts and advances . ... . . . . .. ... . U. S. Gove rnm ent securities • .. . . . . . ....... . . Total earning ass ets • •• • .. ••. . . .... . .. . .... M embe r bank reserve deposit:•... .. ......... Fed eral Res erve notes in actual circulation . .. .. TIME DEPOSITS Country banks 1959, September. 1960, Se ptemb er . 1961 , May • • • . • • Revi sed . BU ILDING PERM ITS NUMBER DAILY AVERAGE PRODUCTION Of CRUDE OIL Area (In thousands of barrels) Se pt. 1961 AR IZONA Perc ent chang e from August 1961p Se pte mb er 1960 2,887.2 2,504.7 457.7 1,112.1 127.7 106.8 700.4 271.3 111 .2 4,164.6 7,051.8 2,883.9 2,501.0 444.3 1,130.8 131.6 104.5 689.8 252.9 130.0 4,086.7 6,970.6 Sept ember Area ELEVENTH DISTRICT. .. ..... Texa s• • .•.••........ . . . Gulf Coas t . .. . . . .•...• We st Texa s . ...... . .. . East Texas (proper) ... . . Panhandl e ••.. ••.•... . Rest of Stat • •. . ..... .. South ea stern New M exico .. Northern Louisiana • .• .... • OUTSIDE ELEVENTH DISTRICT. UNITED STATES ... . . . . . . . .. p - 1961p 2,941.3 2,564.3 465 .8 1,143.3 128.9 108.4 717.9 268.3 108.7 4,197.9 7,139.2 August 1961 1.9 2.4 1.8 2.8 .9 1.5 2.5 -1.1 -2 .2 .8 1.2 Se ptember 1960 2.0 2.5 4.8 1.1 -2.1 3.7 4.1 6.1 -16.4 2.7 2.4 Tucson ••••.... Shr eve port . • . . TEXAS Abilene • • • • •• • Amarillo .• ... . Austin .. . .... . Beaumont • ...• Corpus Chri sti . . Dallas ... . .. . . EI Paso ....... Fort Worth • •.. Galveston . .... Houston ...... Lubbock •.... • Port Arthur .•• • San Antonio ••. Waco ••.... • . United States Bureau of Mine s. Fede ral Reserve Bank of Dallas. BUSINESS REVIEW 11: 1961 9 mos. 1961 843 8,118 560 10,782 104 368 339 266 304 2, 113 591 702 136 5,448 264 288 1,099 301 152 1,085 2,619 3,139 2,736 2,816 20,744 5,339 5,692 1,244 16,943 2, 106 1,957 10,753 2,435 2,540 LOUISIANA Wichita Falls •• Pre liminary . SOURCES , Am e rican Petrol e um In stitute. 12 Se pt. 28, 1960 18.0 ARIZONA NEW MEXICO Roswell ..... ... . . ... TEXAS Abilene .. .. ... . . . ... Aug. 30, 1961 TOTAL ASSETS . ... . . .. .... . . .... . .. . Se ptember 1961 Area Se pt. 27, 1961 Item ------ Tota l-17 cities • • 13,878 101,048
