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BUSINESS

REVIEW
NOVEMBER 1962
Vol. 47, No. 11

MUNICIPAL BOND F.INANCING IN TEXAS
State agencies and local governments in Texas have issued in
excess of $5 billion of municipal bonds since the end of World
War II. Annual borrowings have advanced fivefold from 1945
to 1962, and it is estimated that the bonded debt of these governmental units has reached a current level of $4 billion. Cities
and school districts have contributed heavily to this expansion
in debt; but the financing requirements of public colleges and
universities, counties, certain state agencies, and special districts
and authorities have also been prominent. Although the growth
in debt financing of state and local government in Texas is impressive, the rates of expansion in annual borrowings and in
bonded debt outstanding are well below those for the Nation.
Over-all population growth in the State, marked shifts of
population from rural to urban areas, and sharp expansion in
the number of persons of school and college age are among the
principal underlying factors which have stimulated increases in
borrowing for capital-outlay purposes. It is anticipated that these
trends will continue and have a major impact upon borrowing
requirements in the future.
Since 1940, the population of Texas has grown about 56
percent to an estimated total of 10 million persons, as compared
with a gain of about 41 percent for the Nation. Moreover, major
shifts have occurred between rural and urban components. In
1940, persons living in cities and towns accounted for 45 percent
of the total population of the State, but by 1950 this proportion
had increased to 63 percent. In 1960, urban population had

FEDERAL

RESERVE
DALLAS ,

BANK

OF

DALLAS

TEXAS

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

TOTAL POPULATION
TE XAS

w"

MILLIONS OF PERSONS

MI LLIONS OF PERSONS

10

9 ~--~--~~--~--~--."r--~--~ 9

8f----1-y-v
--I-1l:t::

V

8

7~~.--~---4---4---4---+---+--~7
6

1945

6

1947

1949

1951

1953

1955

1957

1959

1961

while spending for the construction and renovation of
public buildings, airport improvements, and parks and
swimming pools required about 13 percent of these
borrowed funds.
Bonds issued by cities and towns during 1957-61
totaled $760,662,000 and provided two-fifths of the
total funds raised through borrowings by all units of
state and local government in Texas. On December
31 , 1960, the bonded debt of these municipalities was
$1,434,900,000, or about 42 percent of the state total.
The four largest cities in Texas -- Houston, Dallas,
San Antonio, and Fort Worth -- account for about
one-third of the total debt of all municipalities in the
State. On September 30, 1962, outstanding debt of
these cities was in excess of $600 million.

School districts rank second in importance among
major municipal borrowers in the State. Enrollment
in the public elementary and secondary schools of
grown to the point where it accounted for three-fourths Texas has increased each year since 1945-46. During
of the total. The age distribution of population in the the school year of 1961-62, the number of students
State also has undergone significant change, with the reached a level of about 2,193,000, reflecting a gain
young~r age groups advancing in relative importance.
of almost 77 percent in the 16-year period. This deIn 1950, persons of 19 years of age and younger ac- velopment not only fostered sharp increases in spending
counted for about 37 percent of the total population, for current operating purposes but also created intense
but this proportion increased to almost 41 percent by pressures upon local school districts to expand and im196CJ. There were 2,848,000 persons in this group in prove facilities. The absorption of rural and smaller
1950 and 3,919,000 in 1960.
independent school districts into larger suburbancentered
units accentuated these pressures for modernCities· and towns in Texas have borrowed heavily
izing
and
expanding plant and equipment.
since 1945', and this growth in debt financing can be
related directly to the sharp expansion in urban popuIn recognition of expanding capital needs, school
lation. Between 1940 and 1960, the number of persons boards requested and received voter approval of inliving in cities and towns in the State increased creasing amounts of debt-financed expenditures.
4,276,000 to a total of 7,187,000. Although rural-to- During 1957-61, local school districts (and junior
urban population shifts were in evidence in the early college districts) sold $562,042,000 of bonds, or about
1940's, mo.st of the urban gain occurred between 1945 30 percent of all Texas municipals issued during the 5
and 19pO. Moreover, because of economic and military years. On December 31, 1960, the bonded debt of
mobilization in connection with World War II and the school districts stood at $1,068 ,383 ,000, or 31 percent
necessity of delaying major capital-outlay projects, the of the state total. It is estimated that school districts in
impact pf urban-area growth between 1940 and 1945
upon municipal financing requirements was deferred
POPULATION, 1940, 1950, AND 1960
almost entirely to the postwar period.
Texas and United States
SOURCE: U.S. Bur.au of th. C.nlul.

(In thou sands)

Capital spending for the improvement and extension
==================================
Rural
Urban
of facilities which provide mass-use services has acTOTAL
Area and year
population
population
POPULATION
counted for virtually all municipal borrowings. During Texa s
1940..... . . . .... . .. . .. .. .
3,503
2,911
6,414
1959-61, for example, almost one-half of new-money
1950........ ...... .......
2,B73
4,B3B
7,711
1960.. ... .......... .. ....
2,392
7,lB7
9,579
financing was for purposes of extending or improving
States
waterworks and sewerage and electric power and light United
1940................. .. ..
57,246
74,424
131,670
1950 .. .... .... ....... . .. .
61,770
BB,927
150,697
systems. Outlays for street improvements, including
1960........ .... .........
65,932
112,532
17B,464
purchases of rights-of-way, accounted for 36 percent;
SOURCE , United States Bureau of th e Cen sus.

I BUSINESS

I2

REVIEW
11 :1962

Houston, Dallas, San Antonio, and Fort Worth account bonds issued in the State during the period. Certain
for about one-fifth of the total debt of all school dis- state agencies also have sold bonds to finance water
tricts in the State.
development, veteran land purchase, and special turnpike
authority programs. Road districts have issued
Public colleges and universities in Texas also have
smaller
but appreciable amounts.
~xperienced impressive growth in enrollment and have
mcreased both borrowings and cash outlays. Fall headENROLLMENT AT PUBLIC CO LLEGES AND UNIVERS ITIES
count enrollment at the public senior institutions rose
1945-46 THROU GH 1962-63
'
from 25,703 in 1945 to ' 109,998 in 1962, reflecting
Texas
a somewhat greater than fourfold increase. At the
Junior colleges
public junior colleges, the number of full-time equiva(Full·tlm e e quivalent
Senior institutions
Year
students)
(Fall hea d count)
lent students expanded during the period by more
1945-46 .. . , .••••••.• . ... . ..
4,999
25,703
than fivefold to a level of 26,075 in 1961-62. In ad- 1946-47
........ ", ..... , .. ,
6,303
53,985
1947-48 .... , , , , , , , ... , .. , , ,
8,822
57,632
justing to this sharp expansion in numbers of students 1948-49
9,673
........ """"" ..
58,017
1949- 50 ... . ,., ... , .. . ..... .
11,823
58,431
~ublic colle~es and universities have made major addi~ 1950-5
12,952
1................... .
55,4 12
trons to theIr physical plants, including classroom and 1951-52.,. , .•. . . . , , , , , , , , , ,
10,737
51,32 1
1952-53 .. , . , , , , , , •. ........
11,93 1
52,399
laboratory facilities, libraries, dormitories, student 1953-54 ... . ,. , •••... , ., . , , .
13,483
56,294
17,068
1954-55 ........ ,," , .... .. .
63,474
~nion buildings, auditoriums, and other permanent 1955-56 ... . ", ' , ••.......••
19,293
71,303
20,243
76,954
.••... ".,"', ..
lillP.rovements . Although cash financing has been 1956-57.,.,
20,330
77,913
1957-58 .... """ .. , .... ...
22,895
1958-59
....
",
.•....
.
.•••.•
80,932
~va~lab!e to meet some of these requirements, most 1959-60 .... .. .... .. " .. , " ,
22,538
86,146
mstltutlOns have met their needs principally through 1960-6 1.. . ................ .
23,150
91,690
26,075
1961-62 ... , ••.. .. , .• , ... , ..
100,982
borrowing. The bonded debt of these institutions at 1962-63
.. . .............. ,. ,
109,998
the end of 1960 was $148,471,000, or slightly more
l lncludes 18 institutions through 1958-59 and 19 institutions thereafter.
SOURCES, Tex a s Commiss ion on Higher Education,
than 4 percent of the total bonded debt of all state
Texas Education Agency.
agencies and political subdivisions in Texas.
General obligation bonds accounted for about 63
Debt financing by counties for public buildings and
percent
of the total bonded debt of Texas and its
other improvements and by special districts and authoragencies
and political subdivisions as of December 31,
ities in connection with water development and related
1960.
Revenue
bonds represented 35 percent of the
projects has added substantially to the volume of mutotal,
with
the
remainder
being combination-type tax
nicipal bonds issued since 1945 . For example,
and
revenue
issues.
As
measured
by total debt outborrowings by these issuers during 1957-61 totaled
standing
at
the
end
of
1960,
revenue
bond financing
$323,821,000 and accounted for 17 percent of all
accounted for 43 percent of the borrowings of cities
and towns and 31 percent of the debt issues of school
PUBUC SCHOOL ENROLLMENT
districts. On the other hand, public senior colleges
TE XAS
and universities used these instruments for meeting
practically all of their requirements.
l

THOUSANDS OF STU DENTS

THOU SANDS OF STUDENTS

2,20 0

VL
I-

2,000

1,800

1,600

1,400

1,200

/
~

<D

"J.

'"

0

~

'·Ellimolid.

SOURCE : Tnae Education AQlncy.

kf

2,200

2,000

I,800

I, 600

I, 400

ij, 200

In the marketing of Texas municipal obligations,
over 90 percent of offerings are sold through the
competitive bidding process. Since almost all general
obligation bonds are sold in this manner, the relatively
small volume of negotiated sales is limited to revenuetype issues. The practice of selling through competitive
bidding reflects a feeling among most issuers that this
method yields the best price and, thus, is the least
costly to the borrower.
Half a dozen or more of the larger commercial
banks in the State and many of the 70-odd resident
nonbank firms bid actively for new offerings of Texas
municipal bonds, usually through organized groups or
BUSIN ESS REVIEW I'
11 :1962

31

syndicates which are formed for this purpose. Depending upon the size and quality of the issue to be sold,
bidding groups may also include or be formed by banks
and nonbank dealers in New York, Chicago, and other
financial centers. When bidding groups are formed
locally or include major local participation, members
usually organize "western" style, whereby each assumes
responsibility for an agreed dollar amount of the total
issue being sold. This contrasts with the "eastern" style
of organization, which makes each member of the
successful bidding group liable for an agreed proportion of the total amount remaining unsold.
The underwriting and secondary distribution of an
expanded volume of Texas municipals in recent years
have led to a significant broadening in the market for
these securities. Local banks and other resident dealers
have played a prominent role in this development by
taking a more active interest in bidding for and selling
new issues and by increasing the scope of their activities in making markets for distributed issues. The
competitiveness of bidding for new issues of Texas
municipals is reflected by the fact that actual bids have
often differed by no more than a few basis points of
net interest cost. Moreover, the movement of national
nonbank firms into the State has aided the dissemination of market information and facilitated a wider
distribution of Texas-issued municipal securities. Since
1956, the number of nonresident securities dealers who
are members of the Municipal Advisory Council of
Texas has increased about one-third to a total of 61.
Interest earnings on municipal bonds, including
those of Texas origin, are exempt from Federal taxes
on personal and corporate incomes. For this and other
reasons, such bonds are especially attractive investment
holdings for many individuals, certain financial institutions, and others, both within the State and in the
Nation. Thus, on June 30, 1961, individuals (including
partnerships and personal trust accounts) owned an
estimated 40 percent of all municipal bonds outstanding in the United States, while commercial banks and
insurance companies held 26 percent and 17 percent,
respectively. Other major types of owners include
state and local funds; corporations, exclusive of banks
and insurance companies; mutual savings banks; and
miscellaneous investors, such as savings and loan associations, corporate pension trust funds, nonprofit
associations, and dealers and brokers.
Although similar estimates of ownership of the
issues of individual states are not available, national
, BUSINESS REVIEW

11: 1962

data suggest that ,a minimum of 75 to 80 percent of
Texas municipals is held by individuals, commercial
banks, and insurance companies. The actual proportion is probably higher because of the special interest
of certain life insurance companies in Texas issues and
the limited demand of other resident and nonresident
investor groups, such as corporations and mutual
savings banks, for relatively small and less well known
issues of local municipals. Texas law requires that 75
percent of the legal reserve for life insurance written
on citizens of the State be invested in Texas securities
or real estate. Insurance company interest in Texas
municipals is also enhanced somewhat by the relatively
large nwnber of firms which have been chartered by the
State and the greater familiarity of the locally based
companies with these issues.
MEMBER BANK HOLDINGS OF OBLIGATIONS OF
STATES AND POLITICAL SUBDIVISIONS
TEXAS
IEnd-of-y.or rlQuru)

MILLIONS OF DOLLARS

MILLIONS OF DOUARS

800

800

L 700

700

./

/.. -

600
500
400
300
200

V

100
1945

~
1947

1949

1951

Y

V../

600
500
400
300
200

1953

1955

1957

1959

I 00
1961

Since 1945, commercial banks in Texas have added
substantially to their holdings of the obligations of
states and political subdivisions, including issues originating within the State. For example, member bank
investments in municipal securities expanded almost
sevenfold from 1945 to 1961. On June 30, 1962,
total holdings amounted to $816,710,000.
Municipal security holdings of commercial banks
in Texas are weighted heavily by issues of larger cities.
However, with the 1955 enactment of a state laW
which gives an unlimited tax base to school district
bonds, banks have shown considerable interest in this
type of obligation. Commercial banks usually prefer
serial issues with average maturities of less than 10
years. A further stimulus to commercial bank interest

in municipal securities was created when the permissible maximum rate of interest payable on time and
savings deposits was raised from 3 percent to 4 percent,
effective early this year. With the additional funds for
investment which were attracted by this rate adjustment and the greater needs for earnings to offset higher
interest payments on such funds, banks have expanded
and lengthened their municipal portfolios. Between
December 31, 1961, and June 30, 1962, member
banks in Texas added $58,847,000, or about 8 percent, to their holdings of these issues.
The three major public funds in the State - the
Teacher Retirement System, State Permanent School
Fund, and Permanent University Fund - held a combined total of $275,972,000 of Texas municipal securities on August 31, 1962, or about 7 percent of the
estimated total bonded debt of Texas and its agencies
and political subdivisions. None of these funds is permitted to purchase or hold municipal obligations except
those of Texas origin, and the State Permanent School
Fund is prohibited from reducing its holdings of municipal obligations through sale. Actually, the State
Permanent School Fund has preemptive rights in
adding to its holdings of certain new securities,
inasmuch as it can obtain any Texas school district
issue at the net interest cost of the highest bidder.
Special circumstances, however, have served to
reduce the municipal holdings of the three funds in
recent years, and these investments declined
$37,184,000 during the 3 years ended August 31,
1962. One of the major factors which has inhibited
HOLDINGS OF TEXAS MUNICIPAL BONDS
BY MAJOR PUBLIC FUNDS*
TEXAS
IAuQu,' 31 Ilvu'lI)

MILLION S OF DOLLARS

MILLIONS OF DOL.LARS

315

/

\315

27S I-If---I---+---+----l--+-I -I--t----1 275

V

235 1-1I---+--+-_l_-_l_-J'I - - t _ - t -_j235

/--I--I--+---i

195

195

155 1--1---!---+---+- /~
+---I---j--t---j 155

1-/-,)[
-+--+-----il--+--I II 5

115 1--11--1---+

75 1-1f---I-- /~
_::.r_-_l_
1 - _ l _ - _ l _ - t _ _ _ t -_j75

Y

35r---.-./'i
1946
1948

35
1950

1952

1954

1956

1958

1960

... Tt achtr R.U,.m,nt Fund of T•• al, Sial' Plrman,nl School Fund, and Perman,nt Unlv.rell, Fund.
SOURCES : T.och., R, lIrem,nt 5y.tlm of TUOI,
T, .o. Educallon Ag.ncy.

TIl. Unl'1.r.lty or T.IO',

1962

recent new purchases of municipals by these funds is
their interest, because of yield considerations, in increasing holdings of corporate bonds and common
stocks - an alternative which is now available by
virtue of changes in legal provisions governing the types
of securities that can be acquired. Inasmuch as the
tax exemption feature of municipals is of no benefit to
these public funds and because of their current interest
in increasing the proportion of corporate issues in their
total portfolios, accruals of new money and reinvestments are being committed heavily to nonmunicipal
securities.
MUNICIPAL BOND ISSUES
TEXAS
I FI,eol )'tor')

MILL.IONS OF COLL.ARS

MIt.LIONS OF DOLLARS

50 0

400

300

+-A

200

100

o

mr~-v

)(

1947

I nI9 ~7, dolo

400

300

200

I

7

1945
k- B, glnnlng

500

I

1949

1951

1953

1955

1957

1959

00

0

1961

or. for col.ndar )'.ora and exelud. r.fund lng.,

SOURCE: Munici pal Ad 'f'I . CM'Y Council 01 T'kO',

Thus far in 1962, municipal borrowings in Texas
have held at a high level. For example, during the
first 9 months of the year, all units of state and local
government issued $344,081,000 of debt obligations,
as compared with $332,834,000 in 1961. Cities and
towns marketed about 40 percent of the 1962 offerings,
while school and college districts accounted for about
30 percent. Significant advances also occurred in the
sale of obligations of special districts and authorities.
Continued population growth in the State, extension
of the recent sharp expansion of urban and suburban
areas, and further increases in the number and relative
importance of school- and college-age youth are expected to create additional heavy , requirements for
municipal borrowing in the future. Recent estimates
indicate that the popUlation of Texas will climb to
11.8 million by 1970 and to nearly 16.0 million by
1985. These estimates anticipate growth for cities and
BUSINESS REVIEW
11 :1962

I

51

BONDED DEBT OF TEXAS AND ITS AGENCIES
AND POLITICAL Sl)BDIVISIONS
DECEMBER 31, 1960

towns and further losses by rural areas. The college-age
population is expected to increase more than one-half
during the decade of the 1960's, as compared with an
advance of only 5.4 percent from 1950 to 1960.
The expanded volume of municipal securities which
will be generated by these developments will add
further to the totGlI bonded debt of the State and its
agencies and political subdivisions. However, because
of nearly two decades of experience with issuing and
marketing increasing amounts of these debt securities,
municipalities and other borrowers should be in a favorable position to meet their requirements. Individuals, commercial banks, and insurance companies
probably will add the major portion of the new issues
to their investment portfolios.

ALL OTHER 14.7,..

COLLEGES AND
UNIVERSITIES 4.3 %

LEONARD JAY SAN TOW
SOURCE : Munici pal Advi,ory Council of Tu o••

Financial Economist

NEW MEMBER BANKS
The Bassett National Bank of EI Paso, EI Paso, Texas,
a newly organized institution located in the territory
served by the EI Paso Branch of the Federal R'e serve
Bank of Dallas, opened for business September 27,
1962, as a member of the Federal Reserve System. The
new member bank has capital of $250,000, surplus
of $250,000, and undivided profits of $100,000. The
officers are: Mack Hiatt, Jr., President; James A. Dick,
Jr., Vice President; Norman S. Stanford, Cashier; and
Leonard Lidiak, Assistant Cashier.
The West Columbia National Bank, West Columbia,
Texas, a newly organized institution located in the
territory served by the Houston Branch of the Federal
Reserve Bank of Dallas, opened for business October
20, 1962, as a member of the Federal Reserve System.
The new member bank has capital of $150,000, surplus
of $150,000, and undivided profits of $50,000. The
officers are: Marcus A. Weems, Chairman of the Board;
James D. Girouard, President; Ray Warren, Vice President and Cashier; and B. Simmon, Jr., Vice President.

I BUSINESS
16

REVIEW
11 :1962

B

(J

5 ·1N E 5 5

REVIEW

BUSIN ESS, AGRICULTURAL, AND FINANCIAL CONDITIONS

The' Texas industrial production 1961. New car registrations in four major Texas
index reached an all-time high markets in September were 34 percent below the
in September of 115 percent of August total but were 29 percent more than in
the 1957-59 base. September September 1961. Cumulative registrations in the first
nonagricultural employment in 9 months of 1962 exceeded those in the comparable
the five southwestern states was fractionally above period last year by 33 percent.
a month ago. Unemployment in Texas was reduced
In September, daily average District crude oil
during the month. Construction contracts in the five
output
rose fractionally, but both processing of crude
states rose to a monthly record during August, and
oil
and
indicators of drilling operations were rethe cumulative 8-month total is an all-time high.
duced. Refinery activity in the area expanded someThe District's weekly reporting member banks in- what in early October, while fragmentary data
creased their investments and deposits but reduced indicate a slight decline in crude oil production.
their loans during the 4 weeks ended October 17.
District agricultural conditions generally were
Holdings of Government securities advanced,
improved
by October rains. Cotton production is
principally because of recent Treasury financing
estimated
to
be about the same as last year; outoperations.
turns of other important southwestern crops, except
Seasonally adjusted sales at Eleventh District de- rice and sweet potatoes, are indicated to be below
partment stores in September increased 6 percent those in 1961. The 1963 wheat crop has made
o~er August and were 12 percent above September favorable growth.

Seasonally adjusted department
store sales in the Eleventh Federal Reserve District in September increased 6 percent over
August and were 12 percent
above a year ago. The adjusted September index was
113 percent of the 1957-59 average, compared with
107 for August and 101 for September 1961.
The unadjusted dollar volume of District department
store sales in September was 10 percent below August
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
Eleventh Federal Reserve District
(1957-59

= 100)

SALES (Daily averag e)
Date

Unadjusted

Seasonally
adjusted

1961 : Septem ber . • • . .
1962oJuly..........
August........
September. ... .

97
102
108
109

101
112
107
11 3

STOCKS (End of month)
Unad justed

Seasonally
adjusted

109
109
115
118p

103
114
112
ll1p

------------------------------------------p - Prollmlnary.

DEPARTMENT STORE SALES
(Percentage change in retail va lue)
September 1962 from
Area
Total Eleventh District. • • • • . . ••
Corpus Christi................
Dallas.... ... ...............
EI Paso.....................
Houston .............. o. ....
San Antonio. . . . • . . • • . • . . . . . .
Shre voport, La.. . . . . . . . . . . . . .
Waco......................
Other citl.s. . . . . . .. .. . .. • • . .

August
1962
- 10
-21
-10
-7
-7

- 11
-11
-13
-13

September

1961

9 months,
1962 from
1961

7

7

- 11
5
5
9
10
6
7
10

-4

7
8
11
10
13
9
8

but was 7 percent above September last year. The decline from August was due, in part, to the fact that
September had three less trading days than the preceding month. Sales increased over September 1961, even
though there was one less trading day in September
1962. However, sales showed a year-to-year decrease
during the first half of October and in the 2 weeks
ended October 13 were 4 percent lower than in the
corresponding period last year.
BUSINESS REVIEW
11 :1962

l'

71

September registrations of new passenger cars in
four major Texas markets rose 29 percent over September 1961 but were 34 percent below the August 1962
total. The August-September decline follows the annual
pattern usually associated with model change-overs
by manufacturers. For the first 9 months of this year,
the four markets registered substantial gains over the
same period in 1961, including 17 percent for San
Antonio, 22 percent for Houston, 35 percent for Fort
Worth, and 41 percent for Dallas. Cumulative registrations in the 9 months were 33 percent more than in
January-September last year.
Agricultural conditions throughout a large part of the District
were improved by light to heavy
October rains. The precipitation
boosted forage supplies and furnished growing moisture for important fall crops. As
fields dried, harvesting activities moved ahead at a
fast tempo.
Cotton has matured rapidly on the Texas High
Plains with warm temperatures and clear skies. On the
important Southern High Plains, defoliants have been
applied to mature plants, and harvest is active. Gathering of the Blacklands cotton crop has made good
progress between rain showers, and stalk destruction
in south-central Texas is virtually complete. Cotton
harvest in New Mexico has gained momentum, but
progress is behind a year ago.
Cotton production in the District states, as of
October 1, is placed at nearly 6.8 million bales, or
70,000 bales above the preceding month's estimate and
CROP PROD UCTI ON
lin tho usand. of bushels)
FIVE SOUTHWESTERN STATES'

TEXAS

1962,

1962,

Average

Average

estimated

Crop

October 1

1961

195 1-60

October 1

196 1

1951-60

Cotton 2 •••••••• •

4,775
28,024
43,696
17,329
3,570
308
15,801
207,132
190
2,287
207,940
2,505
845
15,000

4,786
31,890
84,870
28,998
10,1 04
39 1
11,452
229,635
1,610
2,424
224,960
2,776
770
20,000

4,050
35,558
38,874
26,256
4,338
252
13,456
160,532
485
1,875
162,238
1,763
1,150
31,470

6,775
39,880
121,553
26,015
22,426
1,0 11
30,899
238,292
190
6,625
366,100
5,332
4,787
45,200

6,762
48,044
205,664
45,182
42,599
1,183
24,963
263,426
1,610
7,108
385,865
6,108
4,431
72,250

6, 111
56,075
11 8,333
42,614
20,884
1,020
26, 179
183,779
485
5,572
270,951
4,01 1
5,864
73,168

estimated

Corn •.... . ... . .

Winter wheat ....
Oat............
8arley ••••• • •••
Rye .. ..........
Rices•••••• • ••• •
Sorghum grain • • •

Flax.eed ••• • •••
Hay· ..... .. ....

Peanuts li • • •• ••••
Irish potatoes 6 • • •

Sweet rotatoese..
Pecans • . ••. . • ..

l Arizona, Louisiana, New Mexico, Oklahoma, and Texas.

'In thou.ands of ba les.
"In thousands of bog. containing 100 pounds each.
' In thousands of tons.
fi ln thousands of pounds.

oln thousands of hundredweight.
SOURCE, United State. Department of Agriculture.

I

BUS I NE SS RE V IEW
18
11 :196 2

about the same as the 1961 crop. Compared with last
year's output, decreases are reported for all of the
District states except Louisiana (ranging from a fractional decline in Texas to a 9-percent reduction in
Oklahoma); the Louisiana outturn is indicated to be
17 percent larger than in 1961 .
Wet fields have delayed combining of late grain
sorghums in the District states, and harvesting is behind
last year's operations. Grain sorghum production is
estimated at 238 million bushels, which is one-tenth
less than the 1961 outturn. Rice harvest conditions
have been favorable, and combining of the crop is
almost finished . Rice production in Louisiana and
Texas is placed at 31 million bags, or about one-fourth
greater than last year's output.
Drilling of 1963-crop wheat in the District states
is in the final stages. The crop in the Texas Plains
and New Mexico has made good growth, following
early-October rains. Development of oats in the Blacklands has been spurred by heavy rains. Seeding of the
crop is well under way in south and south-central
Texas, but soil moisture is badly needed and armyworms are a serious threat.
Hot, dry weather in the Lower Rio Grande Valley
of Texas during October caused some losses of young
vegetable plants. In the Winter Garden area, vegetables
have made good progress, and cucumber harvest is
well advanced. Digging of the east Texas sweet potato
crop has been in full swing. On the High Plains, lettuce
harvest has been active in the open weather, and picking of tomatoes has been under way, with most of
the crop going to canneries.
Southwestern ranges generally are in fair to good
condition, other than in south Texas and many Edwards Plateau counties. Armyworms have taken a
heavy toll on upper coastal pastures. Except in the
dry areas of the District, cattle mainly are in good
to excellent condition.
Loans and time and savings deposits at the Nation's weekly
reporting member banks expanded during the 4 weeks ended
October 10; investments and
demand deposits declined. The money market reflected
a relatively firm tone during the latter half of September and the first part of October, with Federal
funds generally trading from 23;4 percent to 3 percent.
Activity in the Government securities market was
materially influenced by the Treasury's refinancin,g and

CONDITI ON STATISTICS OF WEEKLY REPORTING
MEMBER BANKS IN LEADING CITIES

NEW PAR BANK
The International 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,
Octo ber 11 , 1962. The officers are: Irvin M. Shl enker,
Pres ident; Jo hn W . Hazard, Executive Vice President;
Clyde G . Godbold , Vice Pres ident; G uy D. Davids on,
Vice President and Cashier; and John F. G. Kalb, Assistant Cashier and Auditor.

cash borrowing operations. Other market influences
included improved confidence in the international
position of the dollar, less optimistic expectations
regarding the domestic economy, the announcement
of Treasury plans to offer $250 million of long-term
bonds to be sold through competitive bidding, and a
reduction of one-half of 1 percent in the Canadian
bank rate to a level of 5 percent. On October 18, the
Board of Governors of the Federal Reserve System
announced that the reserve requirement on time and
savings deposits would be lowered from 5 percent to
4 percent, effective October 25 for reserve city member
banks and November 1 for country member banks.
Prices of intermediate- and long-term Government
securities rose during the last half of September and
the first part of October. The auction rate on 91-day
Treasury bills declined from 2.796 percent on September 20 to 2.749 percent on October 18, while the
auction rate on 182-day Treasury bills decreased from
2.962 percent to 2.843 percent during the same interval.
At the District's weekly reporting member banks,
investments and deposits expanded but loans declined
in the 4 weeks ended October 17. Cash accounts
moved lower, while total assets increased moderately.

Ele venth Federa l Reserve District
lin thousand. of dolla rs )
Oct. 17,
1962

Sept. 19,
1962

Oct. 18,
1961

1,781,0 16
46,414

1,769,694
44,368

1,706,158
38,977

7,013
43,909

23,274
47,811

274
63,753

2,019
178,207
79,880
123

2,588
176,815
71,980
94

3,198
161,973
43,736
127

All other loans • .. •••••••• • . . . ..•.. . • . ..•••

88,281
201,162
275,923
834,998

95,289
202,086
274,4 16
842,195

90,728
163,582
235,355
721,104

Gross loans • • • •• • • • •• . . . •••••••••••••••
Less rese rves and unallocate d charg e-offs ••

3,538,945
61 ,668

3,550,610
61,649

3,228,965
54,594

Item

ASSETS
Commercial and Industrial loans •• ..... • .... ••
Ag ric ultural loans • • • • •••. ••••• • •• • •••. • . •.•
loans to brokers and d ealers for purcha sing
or carrying :
U. S. Governm ent securiti es •• ••.• . • .•••• . • •
Othe r sec uriti es •• • • •••• • ••• •••••• • •• ••.•
Other loans for purcha sing or carrying :
U. S. G overnm ent securities • •• • ••••••••• •• •
Other securities •• • .. . . .• .•• .• ••. ..•.••..
loans to dom estic comme rcial ban ks ••••• . .••••
loans to fore ign banks •••••••••••••••••••.•
loans to other flnancial institutions:
Sales flnance, p ersonal finance, e tc .. . .... .. .
Savings banks, mtg e . cos., ins. cos., e tc .......
Real-estate loo ns •• •• ••.•.......•.•.•••••••

Net loans •• • ••... •••• • •• . ••••••••••••••

3,477,277

3,488,961

3,174,371

Trea sury bills .• ••• •• . ... ••• ••• •• . • .•. ••• . •
Tr e a sury certlflcates of Indebtedness • •••••••••
Tre a sury notes and U. S. Government bonds,
including guaranteed obligations, maturing :
Within 1 year ••• • •. ..• •• • ••••••• • .... ..
After 1 but within 5 ye a rs • •• ••••••• •••••• •
After 5 years • • ••••....••••••.•••....•• .
Other securities • • • . .••••• • ••••. . • . . . • • • • • •

242,136
92,137

134,987
105,436

185,209
55,563

230,890
583,478
510,378
510,039

274,800
551,803
483, 131
479,348

243,060
689,343
427,769
413,534

Total investments • • .• ••••• • .... . ••• •• ••••

2,169,058

2,029,505

2,014,478

Cash ite ms in process of collection • • •• ••• ... . .
Balances wi th banks in th e United States •..••••
Balances with banks in foreign countries • • •• • ••
Currency and coin • ... .. •••.•••• ••• ••••••••
Rese rves with Fe d eral Res erve Bank ••• ••. . . . ••
O ther assets •••••• •••• • . ....••• • . • . •• • •• ••

625,248
473,967
2,256
59,440
598,647
202,278

604, 120
534,588
2,033
63,404598,165
200,947

541,806
495,239
2,133
58,331
591,5 12
192,603

TOTAL ASSETS •••••••••• ... ••• •• •••••

7,608,17 1

7,521,723

7,070,473

3,107,585

LlA81 L1TIES AND CAPITAL ACCOU NTS
Demand de posits
Individuals, partnerships, and corporations • • ••
Foreign governments and offlcial institutions,
central banks, and inte rnationa l institutions..
Unit e d States Government ••• • . • . • • • • • ••••
States and political subdivisions ••••.••• • •• •
Banks in the Unite d States, including mutua l
saving s banks • • •• .•• •••... . •••• • •• •• . .
Banks in fore ign countries • •• .••• ••• .•• •• .•
Certlfle d and offlcen' checks, e tc .• •• •• • •• . .

3,101,352

3,025,055

2,726
249,531
222,227

4,345
159,308
202,090

4,091
237,71 8
162,259

1,146,14 1
13,563
42,429

1,167,820
13,089
54,294

1,134,769
13,007
45,581

Total d emand de posits • • • •..•.•• • • ••. ..

4,784,202

4,702,298

4,622,480

970,471
724,337

959,379
7 11,2 16

789,5 18
565,281

2,508
6,652
264,04 1

2,510
6,652
272,377

1,008
7,077
287,654

Time and savings de posits
Individuals, partnerships, and corporations
Savings deposits •• • • ••• •• . • . .. • .• • •• ••
Other time de posits • ••• .•.... •• ••• . • . • .
Fore ign gove rnments and offlcial instit utions,
centra l banks, and international institutions ..
U. S. Gove rnm e nt, including posta l savings • • •
States and politica l subdivisions •• . • . •••••••
Banks in the Unit e d States, Including mut ual
savings banks • • ••.••• .... • .• •• .. • • ..••
Banks in foreign countries • . .. •. ...•• •• • • • •

Gross loans (excluding interbank loans) decreased
5,083
5,973
6,369
2,350
2,350
1,200
$1 9.6 million, with reductions in loans for purchasing
1,960,457
1,658,107
Total time and savings d e posits ••• • •• •••• 1,975,442
or carrying securities, loans to nonbank financial
6,662,755
6,280,587
Total de posits • • • • ••••.. •••• • •• •• ••• 6,759,644
institutions, and consumer-type loans offsetting an
96,740
117,406
94,000
Bills payable, re di scoun ts, e tc •• •.•• • ••• • •....
107,197
102,251
95,395
All
other
liabilities
.
•
••
•••
••
••••
••
••.
•
••••••
expansion in commercial and industrial loans. The
644,590
639,311
600,491
Capital accounts • •• . ••• ••••• .. ...•.•••••••
increase in business loans was due primarily to ad7,521,723
7,070,473
TOTAL LlA81LITIES AND CAPITAL ACCOUNTS . 7,608,171
vances in loans to trade and construction concerns;
a reduction in loans to firms producing durable goods
Total investments at the District's weekly reporting
Was the largest offsetting factor in the commercial and
member
banks increased $139.5 million during the
industrial loan category. In the corresponding period
of 1961 , gross loans rose $10.6 million, with the expan- 4-week period ended October 17. Government security
sion occurring principally in commercial and industrial holdings climbed $108 .9 million, as large increases
occurred in holdings of Treasury bills and of Governloans and loans to nonbank financial institutions.
BUS INE S S REV IEW'
11: 1962

9 1

RESERVE POSITIONS OF MEMBER BANKS
Eleventh Federal Reserve District
(A ve ra ges of dail y flgures. In thou sand s of dollars)

Item

RESERVE CITY BANKS
Total rese rves he ld • ••. . . • .. •• •
With Fe d e ral Res erve Bank . ..
Curr e ncy and coin .•..•••.. • •
Re quired r ese rves •• • • ••
Excess ~ e 5 erves • ••• • •• :
Bor rowings ••••• • ••• • ••
Free r ese rves •••• • • •• ••

• •• ••• •
••• • •••
• • • • •• •
•• • ••••

COUNTRY 8ANKS
Totol rese rves he ld . • •.. • ••.•..
With Fed eral Reserve Bank • ••
Cu rre nc y and coin •.. .....• • .
Re qui re d rese rves ... •. . • ... • .•
Excess rese rves .. • • .. •• .. •• • . •
Borrowing s• •• •• • •••••••• • •• • •
Free re se rves • •• ••• • • •• • •• • • • •

4 wee ks e nd e d
Oct. 3, 1962

5 wee ks e nd e d
Se pt. 5, 1962

4 wee ks end e d
Oct . 4,1961

605,081
561,281
43,800
599,856
5,225
1,215
4,010

596,359
553,823
42,536
591,314
5,045
200
4,845

580,083
538,679
41,404
574,03 1
6,052
107
5,945

537,576
426,414
111,162
478,385
59,191
6,624
52,567

534,861
427,833
107,028
472,467
62,394
7,200
55, 194

518,893
412,896
105,997
452,237
66,656
1,134
65,522

1,142,657
987,695
154,962
1,078,241
64,416
7,839
56,577

1,131,220
981,656
149,564
1,063,781
67,439
7,400
60,039

1,098,976
951,575
147,401
1,026,268
72,708
1,241
71,467

All MEMBER BANKS
Total reserves held •••• •• • •• •••

With Fed eral Reserve Bank ••••
Cu rre nc y and coin • .• •. .. •• . .

Re quire d rese rves .•• • •..•...•.
Excess rese rves •••••. . •. • •. .• .
Borrowings •. .• • . .• • .. . . • .....
Free rese rves •••..••.. •• .. • • .•

ment notes and bonds due after 5 years. These gains
reflected, in part, the Treasury's recent advance refunding operation and its sale of I-year bills and Tax
Anticipation bills, the latter offering generating considerable District bank interest because of the 100percent tax and loan feature. Non-Government security
holdings, mostly in the municipal bond category, rose
$30.7 million during the 4 weeks. In the comparable
period last year, total investments advanced significantly because of an increase in holdings of Government securities.
Total demand deposits moved upward $81.9 million
at the District's weekly reporting member banks in the
4 weeks ended October 17; the gain was largely
accounted for by an expansion in demand deposits of
the United States Government. Time and savings
deposits climbed $15.0 million, with deposits of individuals, partnerships, and corporations weighing heavily in the increase. During the corresponding period in
1961 , demand deposits and time and savings deposits
also moved to higher levels.
Total reserves at District member banks advanced
moderately during the 4 weeks ended October 3. Excess reserves moved slightly lower, while borrowings
from the Federal Reserve Bank were about unchanged.
District crude oil production in
September, at 2,950,600 barrels
daily, was fractionally above a
month earlier and moderately
above a year ago. Fragmentary
data indicate that District output declined in early

r BUSINESS REVIEW
1 10
11 :1962

October, but an increase in daily average production
is expected during the shorter month of November.
Louisiana has retained its September-October allowabIes for the November-December period, and the
Texas 8-day pattern, in effect for the prior 9 months,
has been continued. The top unit oil allowable for
southeastern New Mexico has been increased from 35
barrels daily in October to 37 barrels daily in November, principally to offset a production decrease.
Processing of crude oil in the District declined 5
percent in September, following a moderate rise in
August. Refinery activity in early October expanded
somewhat from the reduced level during the latter
part of September. Indicators of District drilling activity weakened significantly in September. Both the
number of wells completed and total footage drilled
in the area declined one-fifth from a month earlier
and were somewhat below a year ago. The number
of rotary rigs active in the District decreased
slightly during the month and was 10 percent below
September 1961 .
New supplies of crude oil in the Nation were reduced
fractionally during September, as a moderate decline
in crude oil imports offset a I-percent increase in
domestic production. Refinery operations in the Nation
weakened slightly during the month; and at the end
of September, national crude oil stock, totaling
about 248 million barrels, were 2 percent above a
month earlier. Early-October trends indicate a slight
increase in crude oil supplies but a reduction in crude
oil demand; stocks at midmonth were moderately above
the mid-September level.
The seasonally adjusted index of demand for the
four major refined products rose 1 point in September
NATIONAL PETROLEUM ACTIVITY INDICATORS
(Seasonally adiu ste d indexes , 1957· 59

Indicator

= 100 )

Septembe r
1962p

August
1962p

Septe mber
1961

108

105

103

107
165
114
96
108

109
143
109
94
107

106 1
132 '
104
97
105

107
113
104
87
104

103
11 6
106
90
103

105
11 2
10 1
81
100

CRUDE OIL RUNS TO REFINERY STIllS
(daily ave rage). . . • • . . •• . . ••• . . •.• • ..
DEMAND (daily ave rag e )
Gasoline ... . .. .. . . . ...... . .........
Ke rosene . • • . . • • • • • • • • • . • • • • • • • • • . .
Distillate fu e l oil. . ... •• . • • •• . . • ••• • . •
Re sidual fue l oil. . .. . . . . ••• • . •• . . . •••
Four reflned products . • • • • • • . . • • • • •
STOCKS {e nd of month}
Gasoline . • • • • • . . • • • • . • • • • . • • • • • . • • •
Ke rosene. • • . . • • • . . . • • • . . • • • . . • • • • •
Distillate fu el ail ... . . ... . ........... .
Re sidual fu e l oil... . . . •• • . • • . • • • . • •• •
Four refln e d products . • • • • • . • • • . • • •
p - Pre liminary.
SOURCES , Am e rican Pe trol e um Institute.
Un ite d States Bureau of Min es.
Fe de ral Rese rve 8ank of Dallas.

to 108 percent of the 1957-59 base, as a slight decline
in gasoline demand was more than offset by advances
in light and heavy fuel oil usage. Seasonally adj'Jsted
stocks of the four products expanded fractionally
during the month, with the accumulation of gasoline
inventories more than compensating for declines in
stocks of the other major products.
Unusually cool weather in late September provided
a good beginning for the heating oil markets. Kerosene
and distillate fuel oil prices. strengthened, especially in
the Middle West. Somewhat milder weather over much
of the Nation in early October, however, failed to
supply continued stimulus for heating oil demand, but
prices generally were sustained. Gasoline demand rose
contraseasonally in early October, 'bUt: the.te was some
easing in gasoline prices frpm the firm position held
in late September.
The Texas "industrial production
index rose 2 points in September
to an all-time high of 115 percent of the 1957-59 average. The
gain was centered in durable
goods manufacturing, although nondurable goods
manufacturing and mining expanded slightly. Within
the major index components, significant month-tomonth increases were shown in the output of primary
and fabricated metals, furniture and fixtures, and metal,
stone, and earth minerals; on the other hand, production in the transportation equipment and printing and
publishing industries declined. These were the only
industries in which output was reduced, and, in both
cases, the decreases were only fractional. Compared
with the hurricane-affected figures of a year ago, the
index was 11 percent higher.
NONAGR ICULTU RAL EMPLOYMENT
Five Southwestern States'

INDUSTRIAL PRODUCTION
(S easonall y adjusted indexes )

Are a and typ e of index

TEXAS 11957-59 .,; 100)
Total industria l production • •• . ••• •
Manufacturing .•••... ..••. .•.
Durable •••••••••••.•.•..•
. ~ondurabl e •... ...... ..•.•
Mining • • ..•.•••••••• • .•••••
UNITED STATES (1957 = 100)
Total industrial production ••••••• •
Manufacturing •.•..• ..• •• ••• .
Durabl e • • ••••.••••• ..... .
Nondurabl e • .•. •••••••••••
Mining •••. •.••• ••• • •.. .. •.•
. Utillti.s .. .... ..... . . ....... .

Septembe r

August

1962p

1962

July
1962

Se ptember

115
127
122
130
101

113
123
117
127
100

113
123
118
127r
101

104
110
107
113
95

119
119
115
125
102
143

119
119
11 5
124
102
143

119
119
115
125
102
· 144 ·

11 1
111
105
119
97
135

1961

p - Preli minary.
r - Revised.
SOURCES, Board of Governo rs of the Federal Reserve Sys te m. ••
Fede ral Rese rve Bank of Dallas.

Totaling 4,563,700 in September, non~:grj9ultural
employment in the five southwestern st~tes :wc;rs fractionally above the month-earlier level.. QQYt1rnment
employment rose 3 percent during the D;l.Qntll,,:;but the
number of construction workers decIm~d::: slight1y.
Employment in the other categories showed :o;Q.ly minor
changes. Total nonagricultural employment W.,!-S 2
percent higher than a year ago, as gains Wer~ recordeo
in all employment categories ex;cept m,ining. Une~ .­
ployment in Texas was reduced to an estimated total
of 155,400 persons in September, or 4.3 percen,t of the
civilian labor force - compared with 4.7 peFcent in ;
August and 5.2 percent a year ago.
The value of construction contFacts in the five
southwestern states advanced during August to $404
million - a record for the month - and was 20
percent above the disappointing July level. Residential
building was virtually unchanged fwm a month ago,
but significant gains were registered in nonresidential
building and public works anGutilities construction. The
cumulative 8-month total 0f $2,963 million is an a11time high, with increases over the like 1961 period being registered by all three major types of construction.

Percent chango

Sept. 1962 from

Number of p erson s

Type of e mp loyment

. Aug.
1962

Se pt •
196 1

4,480,400
774,800
3,705,600
243,300
299,600

0.4
-.6
.6
-.6
- 1.7

1.9
2.3
1.8
-1.2
.4

379,600
1,088,200
223,900
603,400
867,600

- .1
.1
-.4
.0
3.2

2.4
.5
3.2
3.5
2.8

Septe mber
1962 e

August
1962

Septe mber
1961r

4,563,700
792,400
3,771,300
240,300
300,700

4,547,500
797,200
3,750,300
241,800
306,000

wage and salary workers ••

Mining • . •. • • •• . .•••..
Construction •.. ••.... ••

388,700
1,094,000
231,100
624,800
891,700

389,100
1,092,700
232,100
624,700
863,900

Tran sportation and

public utilili es •. • •••.•
Trad e •.... •••.. .•• •. .
Finance • • •• • •••••• •• ••

Service ••... • ••. • •• •..
Government • ••• •• • ••••

Ari zona, Louisiana, New Mex ico, Oklahoma, and Texa s.
e - Estimated .
r - Revi sed .
SO URCeS, State emp loym e nt ag e ncies.
Federa l Re se rve Bank of Dallas .

1

(In mi1110ns of do llars)
j anuary-Aug ust

Total nonagricultural
Manufacturing •• ••• •• •• ••
Nonmanufocturing •• •• ••••

VALUE OF CONSTRUCTI ON CONTRACTS

Area and typ e

August
1962p

July
1962

August
1961'

• - 1'962p

FIVE SOUTHWESTERN
STA'TES' •. . . ••• ••••• •• • •
Resid ential building • ••••••
Non resid ential building ••.•
Public works and utiliti es •.•
UNITED STATES .. ........ ..
Resi d e ntial building •••••••
Nonresi d entia l building .•..
Public works and utiliti es • ••

404
170
128
105
3,631
1,651
1,177
802

338
170
84
84
3,747
1,623
1,197
926

355
161'
98
96
3,543
1,589 '
1,087
866

' 2,963
1,289
903
77 1
28,381
12,430
B,999
6,952

1961
2,769
1,129
873
76B
25,248
10,844
B,205
6,198

l Arizona, Louisiana, New Mexico , O klahoma, and Tex a s.
p - Preliminary.

NOTE . - Detail s may no t add to totals beca use of rounding.
SOURCE , F. W . Dodge Corporation .

BUS I N E5 5 REV I'EW
11 : 1962
11

I
I

CONDIT ION 'STATI ST ICS Of ALL MEMBER BANKS

BANK DEB ITS, END-Of-MONTH DEPOSITS
AND ANNUAL RATE Of TURNOVER Of DEPOSITS

Eleve nth federa l Reserve District

(Do llar amounts in th ousands)
De bits to de mand
deposit accounts1

(In mil lions of dollars )
Dema nd d e positsl

Pe rce nt
Annua l rate of turnover

chang e from

S. pt. mb er
1962

Area

Aug .
1962

S. pt.
1961

S. pt.30,
1962

Se pt.
1962

Aug.
1962

ARIZONA
Tucson • • •• • •• •• •• • ••

LOU ISIANA
Monroe •••• •••••• • ••
Shr. v. port • • • •••• • ••
NEW MEXICO
Rosw. II •• • • ••• • • • • ••
TEXAS
Abile n• • •• ••• • •• • • ••
Amarillo • •••• • •• ••• •
Austin •• • •• • • • •• ••• •
Beaumont •• ••••• ••• •

Co rpus Christi • • •••• •.
Corsicana • • • • • • ••• • •

Dallas • • • • • • •• •• •• • •
EI Paso • ••• • • •• •••••
Fort Wo rth • ••• •• •• ••
Galveston • • • •••••• • •
Houston •••••• •• • •••
Laredo ••• • •• • • • •• ••

Lubbock •• • •• • • •• • ••
Port Arthur • •• •• • •• ••
San Ang.lo • ••• • •• • •
San Antonio •• •• •• • ••
Texarkona l • • •• • • •• •

Tyl. r ••• • •• • •••• • •••
Waco •••• •• • •• •• • ••
Wichita Falls • • • • ••••

S.pt.
196 1

$ 311,831

- 17

29

$ 148,434

25.2

30.0

21.5

80,899
284,086

-19
-12

- 6

-9

51,107
17 1,046

19.7
20.2

23.6
22.0

21.1
21.8

50,049

-15

7

37,673

15.7

18.5

16.2

95,797
208,017
256,974
165,555
194,950
19,322
2,910,847
311,012
749,509
88,547
2,853,89 1
35,8 12
177,471
60,654
53,954
645,873
24,981
86,1 00
119, 156
103,576

-10
-10
-14
-3

3
-2

-9

6

74,496
118,368
15 1,184
102,247
109,882
19,663
; ,295,9 11
181 ,202
388,266
6 1,576
1,447,678
25,257
11 4,760
42,748
47,589
405,218
22,087
62,902
70,5 19
94,636

Total-24 citi.s . • • • • • •• $9,888,863

15
1

°

8

-15

2

- 8

-1
-2

-13
-8
- 10
- 9

10
10
33

°

-5
-7

-3

- 10
- 14
-14

7
6
4

- 7

- 1

-14

-2

6

-8

-12

4

$5,244,449

15.7
21.4
20.8
19.7
21.5
11.8
27.1
21.1
23.2
17.0
24.1
16.4
18.5
16.9
13.6
19.1
15.2
16.6
20.2
13.2
22 .8

17.6
23 .6
23 .0
20.5
23.5
10.9
31.6
23.2
26.2
18.4
27.2
17.8
19.0
17.8
14.5
21.0
20.2
19.1
20.6
15.2
25.8

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

ASSETS
l oans an d discounts • • • • ••• •• . • • • • . • . ••••
Unite d States Gove rnm ent oblJgations ••• •• •
Othe r se cu rities • • •••• ••.• • • • . • • •• .. • • • .
Rese rves with Fe d e ra l Rese rvo Bo nk • • • • •• . •
Cosh in va ulte •••••• .•... • • • .••••••••• •
Balances with bonks in the Unite d States • • ••
Balances with bonks in for eign countries e •• • •
Cosh ite ms In process of coll ection • • ••• •• ••
O ther a sse ts o • •••• •••• • ••• • •••• • •••• • • •

5,823
2,860
1,088
906
173
1,146
4
656
318

CON DITION Of THE fEDERA L RESERVE BANK Of DALLAS
(In thousands of do lla rs )

It.m

O ct. 17,
1962

Se pt. 19,
1962

Oct. 18,
196 1

Totol gold ce rtiflcate rese rves ••••• ••• • •• • • ••
Discounts fo r me mb er banks • • •• • • • • •• • ••• • •
O the r di sco unts and advonces • • • •••• ••• • • • •
U. S. Gove rnm ent securiti e s • • • • • •• •• •• •• • . • •
Tota l earning a ssets •••• ••• •• •• • . • • •••• • • • •
Me mb e r bank reserve deposits ••• ••• •• • ••• ••
Fe deral Rese rve notes in actuol circulation • • • • •

622,297
8,355
596
1,22 1,147
1,230,098
977,229
874,893

626,798
7,635
596
1,199,932
1,208,163
968,298
874, 180

706,358
1,240
116
1,136,585
1,137,941
966,562
851,669

1,347
6,93 1
3,378

1,224
6,77 1
3,32 1

1,274
7,048
2,87 1

Tota l d e posits • •• • .•• • •• • • • •• '• • •••• • •
Borrowings e •••• •• • • • . • ••• • • • . •• ••• • . • •
O th er liabilitie se • •. • •• .•••• • • •• • • ••••••
Total capita l acco untse • •• ••••••••••••• • •

11 ,656
73
144
1,10 1

11 ,3 16
59
133
1,098

11 ,193
97
150
1,060

TOTAL L1 A8 ILIT IES AND CAPITAL
ACCOU NTS· • • • •• • ••• •• •• • •• •• ••• •
e -

Estima ted.

GROSS DEMAN D AND TI ME DEPOSITS OF MEM BER BANKS
Eleve nth Fe dera l Reserve Distri ct
(Ave rog es of daily flgu res. In millio ns of doll a rs)
TIME DEPOSITS

GROSS DEMAN D DEPO SITS
Dat e

Total

Rese rve
city b an ks

1960: S. pte mb.r .
196 1: Septe mb e r.
1962: May •• •. • •
June • • •• ••
July • • •• •••
August • •••
S.pt. mb.r .

7,577
7,889
7,973
8,144
8,111
8,02 1
8, 194

3,814
3,910
3,923
4,062
4,032
3,967
4,096

Coun try
b a nks

Tota l

Reso rve
city ba nks

Country
ban ks

3,763
3,979
4,050
4,082
4,079
4,054
4,098

2,317
2,787
3,266
3,267
3,29 1
3,538
3,357

1,170
1,404
1,654
1,65 1
1,638
1,646
1,666

1,147
1,383,
1,61 2
1,616
1,653
1,892
1,69 1

BUILDI NG PERMI TS
VALU ATION (Dolla r a mounts in th ousa nd s)
Pe rcent cha ng e

DA ILY AVERAGE PRODUCTION Of CR UDE OI L
( In tho usa nds of barre ls)

AR IZO NA
Tucso n •• •• . •• •
LOUISIANA
Shreve port •• • •
TEXAS
Abi l. n•• • •••• •
Amaril lo •• •• • •
Austin •• • • • •• •
Be aumont • •• ••
Corpus Christi..
Dallas • •• •••••
EI Pa so • •• •• . •
Fort Worth •• ••
Galve ston •• •••
Houston • • ••••
Lubbock • •• • • •
Midland • • ••••
O d .ssa ••• • •• •
Port Arthur • • ••
So n Antonio •••
Waco • • ••• • ••
Wichita Fa lls • •
Tota l-1 9 citi • • • •

S. pt.mbe r
1962p

August
1962p

S. pt. mber
1961

August
1962

S. pt. mb . r
1961

ELEVENTH DiSTRiCT •••••• ••
Te xa s •• ••• • • ••• ••• • • • ••
Gulf Coast • •• ••••••• • •
We st Te xa s • • •••• •• • ••
East T.xa s (prope r) •••••
Panhandl •• •••• •• •• •• •
R.st of Stat • • • •• • •••••
Southeaste rn Ne w Me xico • •
Northern louisian a •• • • •• ••
O UTSIDE ELEVENTH DISTRICT.
UNITED STATES •• •••••• • • ••

2,950.6
2,541.1
476.3
1,130.0
11 6.8
104.3
713.7
269.1
140.4
4,390.2
7,340.8

2,928.3
2,531.5
476.3
1,133.0
11 9.3
104.3
698.6
265 .9
130.9
4,348.5
7,276.8

2,85 1.8
2,460.0
440.6
1,142.4
12Q.6
103.3
653 .1
264.1
127.7
4, 143.1
6,994.9

0.8
.4
.0
- .3
-2 .1
.0
2.2
1.2
7.3
1.0
.9

3.5
3.3
8.1
- 1.1
-3.2
1.0
9.3
1.9
9.9
6.0
4.9

p - Pre lim inary.
SOURCES: Am.rican Petro l. um Instit ute.
United States Bureau of Mine s.
Fed. ra l Res.rve Ba nk of Dallas .

BUSINE SS REV IEW
12

11:1962

5,388
2,994
1,022
894
172
1,150
3
574
303

12,974

Are a

Are a

5,732
2,845
1,055
915
172
1,073
2
543
269

TOTAL ASSETS • • •• • ••.••• ••• •• •• ••••

NUMBER

Percent change from

Se pt. 27,
1961

LIAB ILITIES AN D CAPITAL AC COU NTS
De ma nd d e posits of bonks • ••• • • • • •••••• •
Oth. r d e man d d . posits • •• • ••• • ••• •••• • • •
Time d e posits • •• • •••• •• •••. •• •••• •• ••••

23.0

1 De posits of individua ls, partners hips, a nd corporati ons an d of sta tes a nd politica l
subdivisions.
!I Th ese fig ures include o nly two ban ks in Texarkana, Te xa s. Totol de bits for all ba nks
in Te xarkana, Texa s.Arkansas, incl uding one bank locate d in th e Eighth District,
amount. d to $55 ,203,000 fo r th e month of Se pte mbe r 1962 .

Aug . 29,
1962

Se pt. 26,
1962

It. m

Se pt.
1962

9 mos.
1962

Se pt. 1962 from
S. pt.
1962

9 mos.
1962

Aug.
1962

Se pt.
1961

9 months,
1962 from
1961

533

6,90 1

$ 1,860

$ 31 ,717

-6

- 26

-12

279

2,685

2,603

16,333

14

11 6

-41

121
247
308
285
213
2,102
313
658
173
1,477
149
79
75
122
1,193
250
11 5

1,229
2,555
3,155
2,81 1
2,69 1
22,213
4,269
5,957
1,902
22,120
2,153
1,007
769
1,369
11 ,930
2,077
1,189

1,33 3
2,280
5;077
848
2,927
15,654
1,41 7
2,095
543
22,654
4,329
1,352
366
47 1
5,572
865
643

16,206
27,62 1
48,266
12,892
16,99 1
192,655
32,138
34,098
17,320
263, 124
31 ,694
13,035
7,640
5,124
48,69 1
11,573
8,903

- 9
- 12
9
-52
59
2
-40
- 21
-42
- 26
13
63
-63
-72
47
-26
37

43
-38
31
20 1
25
-75
-48
121
42
34
1
-64
-7
9
8
-50

32
- 17
9
18
-16
23
-40
-19
283
35
-3
16
-24
- 16
19
-2
-4 8

8,692

98,982

$72,889

$836,02 1

- 10

11

9

- 11