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business
•
review
november 1964
FEDERAL RESERVE
____
_ _ _ _ _B
: :.:. . A
: N K 0 FDA lL LAS
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
contents
Fifty Years of Public Service
,T he Federal Reserve System . . . . . . . . . . . . . . . . . .
3
Federal Reserve Bank of Dallas . . . . . . . . . . . . . ..
6
The Federal Reserve in the Future . ..... . . . .. . 22
E'ifty Years of Public Set·vice
The year 1964 marks the Fiftieth Anniversary of the establishment of the Federal Reserve
System. Though known and understood in the
financial community, the Federal Reserve is not
as well known to the general public. This lack
of familiarity is the result of the fact that, as
the Nation's central banking system, the Federal Reserve deals primarily with commercial
banks, foreign central banks, and the U. S.
~r~asury and has very little contact with indiVIdual citizens.
To some extent, the activities of the Federal
R.es erve System in carrying out its primary
duties and responsibilities are so complex that
they do not lend themselves to general under~~a.n?ing; moreover, such duties and responsiIhhes must be handled with great care to
avoid premature disclosure which could interfere with effective implementation. Unfortunately, these characteristics of the System's
work have led to public indifference, even
though most of its endeavors are directed toWard public service. Thus, the System's efforts
to protect the value of the dollar at home and
abroad, to provide an increasingly efficient
check collection system, to distribute currency
and coin to the commercial banks, to provide
an elastic credit supply, and to furnish guidance
through supervisory channels to the banks
Who
Ich are members of the System are not alWayS fUlly recognized.
The anniversary of the Federal Reserve Systern offers an opportunity to encourage public
understanding of the Nation's central banking
S?stem. An explanation of the System's funct~ns, the way in which it has grown and
~h anged over the 50 years of its existence, and
e extent to which it has contributed to and
progressed with the economy of the Nation are
Integral parts of the following presentation.
The Federal Rese,.ve System
On December 23, 1913, President Woodrow
Wilson signed the Federal Reserve Act creating
for the United States a new central banking
system. This system is peculiarly American in
many of its characteristics but, yet, is patterned
to some extent in its powers, authorities, and
responsibilities after the older central banks of
Europe. The avowed purposes of Congress in
establishing the Federal Reserve System were
to provide a flexible credit supply to meet seasonal requirements of industry, agriculture, and
commerce; to obtain more effective bank supervision; to provide an elastic currency; to establish a more efficient check collection system;
and, by implication, to provide an important
influence upon the flow of currency and credit
to counter inflationary or deflationary trends
in the economy.
Viewed in relation to central banks throughout the world, the central banking system of
the United States is structurally organized in
a unique fash ion. Visualizing the Federal Reserve structure as a pyramid - with the member commercial banks in the $ystem at the base,
then the regional Federal Reserve Banks, and,
at the apex, a centralized Board of Governors
- one might think that, as in the case of many
other central banks, all power is vested at the
head of the pyramid.
But, following the pattern of many other
American institutions and in keeping with the
broad framework of the. Nation's Constitution,
there are built into the Federal Reserve System
a peculiarly American system of checks and
balances and a unique private and public orientation. These are especially demonstrated in the
structure of the Federal Reserve System by the
governmental appointment of the Board of
Governors as opposed to the member bank
3
Authority over the Nation's instruments of
monetary and credit control is divided. Reserve
requirements of the member banks are set by
the Board of Governors, but joint responsibility
is exercised by the Reserve Banks and the
Board of Governors with regard to discount
rates. l Likewise, the Federal Open Market
Committee reflects the joint representation and
authority of the Board and the Banks. Checks
and balances also are built into other features
of the System, including the long term of office
for a member of the Board of Governors (14
years) and the shorter term of office (4 years)
for the Chairman of the Board.
Banks were the major instruments available to
the System for purposes of effecting adjustments
in the Nation's supply of money and credit.
Under authorization granted by the Banking
Act of 1935, another instrument was added;
the Board of Governors of the Federal Reserve
System was given discretionary power to increase reserve requirements within specified
limits. The original Federal Reserve Act had
set the legal percentages, but, by amendment in
1917, these were changed to 3 percent for time
deposits and 7, 10, and 13 percent for demand
deposits (according to the classification of the
particular member bank as a country, reserve
city, or central reserve city bank). The neW
authority contained in the Banking Act of 1935
permitted the Board of Governors to increase
reserve requirements to a maximum of twice
these amounts.
Over the 50 years of operation of the System,
the Federal Reserve has changed in many significant ways. Changes have occurred by legislation, by interpretation, and by evolution. Of
particular importance among the legislative and
evolutionary changes in the System has been
the shift toward the use of open market operations - i.e., the purchases and sales of U. S.
Government securities - as the primary means
of influencing the supply and cost of the Nation's money and credit.2
Although adjustments in the limits of this
discretionary authority have been made on occasion and changes effected in the reserve classification of member banks, reserve requirements
continue to be .one of the major monetary tools
which can be employed by the System when
the need arises. Generally speaking, the System has used this instrument rather sparingly,
principally to effect large and relatively permanent changes in the volume of reserves available to the commercial banking system.
In the early part of the System's history and
continuing until the midthirties, the discounting
of commercial and agricultural paper and
changes in the discount rates of the Reserve
The role of open market operations in System
monetary and credit policy was greatly eXpanded in the 1930's. The Banking Act of 1933
legalized the informal, extralegal arrangements
for the purchase and sale of Government securities in the open market - a technique whicl1
had been developed during the 1920's and early
1930's - and created "a Federal Open Market
Committee" to oversee centralized purchasing
and selling of Government securities for the
System as a whole. The Banking Act of 1935
amended this earlier legislation and established
the Federal Open Market ·Committee in its
present form. Since that time, open market
election of a majority of the Reserve Bank directors. Moreover, elections of Reserve Bank
presidents are subject to the approval of the
Board of Governors.
1 Reserve requirements specify that member banks
will hold a certain percentage of their demand and
time deposits in a reserve account at the district Federal Reserve Bank or in vault cash. A discount rate is
the interest rate charged a member bank which borrows from the Federal Reserve Bank.
2 When the Federal Reserve purchases Government
securities from a securities dealer, it pays by check,
which is deposited by the dealer in a commercial bank.
In due course, the check clears through the Federal
Reserve Bank and is credited to the reserve account of
the bank. The new bank reserves thereby created can
be used to expand bank credit.
4
operations have constituted, by far, the principal instrument actually employed by the System
for adjusting the aggregate reserve position of
the commercial banking system in response to
needed levels of money and credit in the
economy.
A number of factors have contributed to the
i~creased importance of open market operatrons by the System. The development of a
greatly expanded and highly sensitive market in
D. S. Government securities since the midthirties is a major factor. The growth of the
Federal debt associated with the financing of
World War II is of particular significance in
this regard, especially the sharp increases which
have Occurred in the volume of short-term,
highly liquid Treasury issues in the hands of
commercial banks, other financial institutions,
and nonfinancial corporate businesses. The
Government securities market provides a highly
efficient mechanism whereby the System, upon
its own initiative, may supply additional reserves to the banking system or, conversely,
may withdraw such reserves.
Moreover, in contrast to the discount function and changes in reserve requirements, open
market operations give the System the needed
flexibility in timing, and adjusting the volume
of, its operations to affect the supply, cost, and
availability of reserves in the commercial banking system. It should be kept in mind, however,
that all three of the tools of monetary policy discounting, changes in reserve requirements,
and open market operations - are essential
and that each contributes importantly to the
effective implementation of monetary and credit
policy.
The growth and development of the Federal
Reserve System are too complex for a short
presentation, but a particularly important aspect of the System is its regional orientation
FEDERAL RESERVE SYSTEM
ORGANIZATION CHART
BOARD OF GOVERNORS
OFTHE
FEDERAL RESERVE SYSTEM
SEVE N MEMOERS
APPOINTED BY
FEDERAL
ADVISORY
COUNCIL
THE PRESIDENT
or THE
FEDERAL
OPEN MARKET
COMMITTEE
MEMBERS
OFTHE
UNITED STATE S
AND
CONFIRMED 8'1'
THE SENATE
REPRESENT·
AllVES
OF F.R ,
BANKS
BOARD OF
GOVERNORS
171
(12 MEMBERS)
1>1
I
I
t______________ _
MEMBER
4,615 NATIONAL
BANKS.
COMMERCIAL
BANKS
1,492 STATE
BANKS
DEC . 31,1963
5
and the strength and diversity that this regionality brings to the System. As a specific
case study, this discussion has as its central
theme a review of the development and growth
of the Federal Reserve Bank of Dallas.
ments in this uniquely American institution.
For example, of the nine directors of each Federal Reserve Bank, three are appointed by the
Board of Governors, but six are elected by the
member banks in the regional district.
Federal Reserve Bank of Dallas
Each member bank is required to subscribe
for capital stock of its Reserve Bank in an
amount equal to 6 percent of the member's
capital and surplus and to pay in to the Reserve
Bank one-half of its subscription. However,
this stock ownership provides little in the way
of the usual control exercised by stockholders
of a corporation and, in reality, allows the
member bank only two stockholder privileges
- namely, the receipt of a 6-percent dividend
per year, fixed by law, and the privilege of
voting in the election of directors. The stockholder cannot receive more than a 6-percent
dividend, whatever the level of profits, unless
the Federal Reserve Act is amended. If a Reserve Bank should close, the stockholders would
have no claim on the residual assets.
As the regional bank representing the Federal Reserve System in the Eleventh Federal
Reserve District, the Federal Reserve Bank of
Dallas was organized in the spring of 1914,
with its organization certificate signed on May
18 of that year. A conference in Washington
determined that all Reserve Banks should open
on November 16, 1914; hence, this month and
day in 1964 mark the Golden Anniversary of
this Bank. The general rules under which the
structure and organization of the Federal Reserve Banks were developed were identical, but
the particular development of each Reserve
Bank has been largely tied to the area which it
serves.
The structure of the Reserve Banks, as reflected in the accompanying organizational
chart for the Dallas Federal Reserve Bank,
illustrates the blend of public and private eleFEDERAL
RESERVE AGENT
6
Further · evidence of the public and private
orientation of the Federal Reserve Bank is
shown in its accounting procedures, control of
BOARO OF GOVERNORS
OFTHE
FEDERAL RESERVE SYSTEM
FEDERAL RESERVE BANK OF DALLAS
ORGANIZATION CHART
JANUARY 1,1964
ELEVENTH
FEDERAL RESERVE
DISTRICT
eXpenditures, and disposition of earnings. It
was determined early that the Banks would folIOw b .
usmess, rather than governmental acCOunting procedures. Since no appropri;tions
~e Voted by Congress to defray the expenses of
l' e Federal Reserve and because of the estab.Ished practices and principles followed in bank;ng and financial institutions, the profit and
~ss-balance sheet approach seemed desirable.
n the other hand, the Bank is primarily ori~nted. toward public service and the efficient
andllng of its delegated public responsibilities.
th Although its operation is not determined by
. e profit motive, the Bank has had net earn~gS prior to the payment of dividends, transers to surplus, or payments to the Treasury in
:~:ry year except 1933, a year in which special
Justments were necessary. However it pays
Uea I
' Treasr y 90 percent of all net profits to the
~ry of the United States as a substitute for a
13 anchise tax. Since 1914, the Federal Reserve
Tank of Dallas has paid $280 million to the
reaSury from net income after all expenses, in-
eluding additions to surplus accounts and dividends on outstanding stock.
In summary, the Reserve Bank's position is
in a twilight zone between the Government and
private sectors of the economy. Many of its
operations al7e similar to those of private commercial banks, as are its accounting and internal structural arrangements. Nevertheless, the
Reserve Banks are tied to Government through
their creation by congressional legislation; their
delegated governmental powers of credit creation, currency distribution, and bank supervision; and the residual distribution of their
earnings.
The Federal Reserve Bank of Dallas was
designated the Head Office of the Eleventh
Federal Reserve District - a District which, as
can be seen on the accompanying map, covers
a great expanse of territory in the southwestern
part of the United States. The size of the District and the diversified activities in the region
are of considerable importance in the routine
7
operations of the Bank and were the cause of
the development of branches at El Paso, Houston, and San Antonio in 1918, 1919, and 1927,
respectively.
The Federal Reserve Bank of Dallas opened
in rented quarters but moved into its own building on October 30, 1915, as the first Reserve
Bank to own its quarters. Since that time, the
Bank has changed location only once; in 1919,
it purchased the site of its present building and
moved into this building on March 12, 1921.
Although the Bank's quarters were remodeled
in 1937 and 1940, an extensive reconstruction
took place in 1960, with the addition of a new
five-story building and a complete renovation
of the older building. New branch buildings
were completed at San Antonio in 1956, EI
Paso in 1957, and Houston in 1958.
In this short review, it is impossible to present all of the economic and financial changes
of the 50 years, but perhaps the accompanying
charts will demonstrate a few of the major factors in the remarkable growth of the Southwest.
At the time of the organization of the Dallas
Federal Reserve Bank, there were only 8 million people living in the five southwestern states3
wholly or partially included in the Eleventh
District. The economies of these states were
fundamentally agricultural, and a vast majority
of the people lived in: rural communities. Cotton and cattle were the kingpins of the economy, although oil had recently been discovered
at Spindletop. There were a few small manufacturing establishments, tied primarily to agricultural industries.
In the succeeding 50 years, the Southwest
has changed remarkably, not only in its basic
economic pursuits but in its way of life. The
18 112 million people presently residing in the
five states are the beneficiaries of the development of a tremendous oil production and rea Arizona, Louisiana, New Mexico, Oklahoma, and
Texas.
8
TOTAL POPULATION
,
RATIO SCAlf
THOUSANDS OF PfRSONS
1,000
~OO
ARIZONA
100 ~191:;:-0---;1-;!;92:;:0---;C19::':3-=0 --""'
9':-:40:----cc'
19~
:-:---:19:::;:60
SOURCE: U,S. Dtporlm,nl of CommlrU,
fining complex, which accounts for more than
40 percent of the Nation's oil resources. Moreover, there has been a mushrooming growth of
manufacturing, associated initially with aircraft·
and war goods but in recent years with automobiles, electronics, chemicals, and the space
effort of the Nation.
With the mechanization of farm jobs and the
steady increase ·in average farm size, the demand for farm workers has diminished sharply,
while industrialization, especially near the larger
cities, has offered new employment possibilities.
Thus, population has shifted steadily from rural
to urban areas. One of the significant features
of the region's economic progress has been the
concentration of trade, financial, and service facilities in particular areas of the District.
Agricultural employment in the Southwest
formerly accounted for more than 40 percent
of all employment but amounts to only 8 percent now, while manufacturing jobs have multi-
plied with the growth of a wide range of new
manufacturing industries. With the population
explosion and shift has come a great change in
the way of life, abetted by the conversion of
the mode of transportation from horse and
buggy and railroad to the automobile and
airplane.
Through the 50 years, cattle and cotton have
remained important features of the southwestern economic scene. Cotton production has
mOved steadily westward, however, and now
dominates the agricultural sectors of some local
economies in west Texas, New Mexico, and
~rizona. Cattle production has moved eastward
Into the former cotton-producing counties of
northern Louisiana and eastern Texas.
Equally dramatic have been the changes in
banking. Although there are fewer banks today
- about 1,100 in this District, compared with
2,500 when the Reserve Bank opened - the
banking industry is much better organized and
eqUipped to aid in the economic development
of the area. Theugh the number of banking
Offices has declined, the volume of bank assets
a?d liabilities has skyrocketed, particularly
SlUce 1940. At the end of 1963, commercial
COMMERCIAL BANK DEPOSITS, LOANS,
AND INVESTMENTS
FIVE SOUTHW ESTERN STAT ES
: " TIO SCALE
'L.lION S OF DOLL ARS
20,000
10,000
5,000
1,00 0
500
. 1925
1935
SOURCE: F' d uOI O'POIU 'nlura ne. Corporo,lon,
1945
1955
1963
banks in the Eleventh District states held loans
and investments amounting to $13 billion and
$8 billion, respectively. Year-end deposits of
these banks totaled more than $24 billion, or
nearly nine times the 1940 total.
Banking in the limited local sense, as evidenced in the 1914 era, has changed significantly, and this change has tied the local and
regional credit markets to the national and
world markets with respect to both availability
of funds and levels of interest rates. Bank competition with a wide variety of nonbank financial institutions has also been a feature of this
changing financial scene. Alternative investment and savings outlets have brought an increasing efficiency in the use of available savings and, with it, a strong public awareness of
interest income.
The Role of the Reserve Bank
in Southwestern Development
The Federal Reserve Bank of Dallas plays a
multifaceted role of participation and stimulation in the economic and financial development
of the Southwest. The Bank's influence is evident in ·the facilitation of credit movements, its
agency duties for the Treasury of the United
States, its responsibilities of supervision and
regulation in the banking community, its leadership in provision of economic and financial intelligence, and its participation in monetary
policy actions.
In the economic growth of the Southwest,
one of the prime roles of the Federal Reserve
Bank of Dallas has been its facilitation of credit
movements. The Southwest, because of its extremely rapid economic growth, has been a
capital-importing section of the Nation, drawing funds from the older, more established areas
of the eastern and central parts of the United
States. The Federal Reserve Bank facilitates
the movement of funds through its wire transfer
division, through facilities for sales and purchases of Government securities, and through
9
VALUE ADDED BY MANUFACTURES
RATIO SCAL£
MILUON5OFOOLLARS
11~90~9--~19~19~--~1~92~9----~19~39~~
1 9~
47~~19~57
4~19~
62
SOURCE:U.S Oeportment 0' COII'IIl'l"tf.
its leadership in providing more rapid and more
efficient clearing of checks.
The interdistrict transfer of funds through
the Federal Reserve Bank of Dallas is accomplished by a private wire system, over which
232,000 transfers were handled in 1963 in the
amount of more than $167 billion. A sizable
part of the transfers stems from the intensive
expansion of the Federal funds market. 4 The
entire transfer arrangements of the Federal Reserve have mushroomed since the end of the
war but have been important throughout the
history of the Federal Reserve System. Illustrative of this growth, in the Eleventh District
there were 10,141 transfers amounting to $471
million in 1920, and 65,000 transfers of $3
billion were functioned in 1935. The increased
use of transfers has been facilitated by the
4 Federal funds transactions consist of interbank
purchases and sales of temporarily available excess reserves in the commercial banking system. This device
has activated surplus reserve funds and brought them
to banks needing funds for further credit expansion.
10
steady improvement in telecommunications devices to the point where, in only a few minutes,
multimillion-dollar amounts can be transferred
to any part of the United States.
The development of a broad market in the
United States for the purchase and sale of
Government securities has made it possible for
savers to invest their funds in relatively riskfree securities and for banks to purchase and
sell such securities as secondary reserves in
order to have funds available to meet loan
demands at various times of the year. The Federal Reserve Bank of Dallas handled more than
14,900 purchase and sale transactions, amounting to $4.4 billion, during 1963, compared with
$82 million during 1940. This broad market for
the purchase and sale of sec,urities has come
about not only because of the improved market
mechanisms but also because of the flexibility
with which such purchases and sales are handled through the Federal Reserve Banks.
Another facet of Reserve Bank operations
which has . greatly facilitated the economic
growth of the regional and national economies
has been the check clearing function. Of special
significance in check clearing has been the public service rendered by the System. In fact, the
basic reason for Reserve Bank participation in
check clearings has been, and continues to be,
serving the people of the Nation by handling
their checks promptly and efficiently and reducing the possibility of loss from undue delay
or mishandling.
Prior to the establishment of the Federal
Reserve System, individual checks were delayed
for days and weeks in their collection because
of circuitous routing. The centralized check
collection procedures of the Federal Reserve
and the regulations applied by the Federal Reserve to its member banks have reduced maximum deferment times for check collection from
8 days in 1939 to 2 days at present. The Dallas
Bank, in company with the other Reserve
Banks in the System, has led in the develop-
ment of better methods of check collection, including the utilization of magnetic ink symbols
to enable check clearings to be done by highspeed electronic computers. This ability to collect checks more rapidly has reduced the
volume of funds which businesses and banks
must keep absorbed in nonworking balances.
Steady increases in the volume of check collections, averaging more than 6 percent per
~ear in the postwar period, reflect the continuIng economic growth of the area and the
expanded role of the Reserve Bank in the
facilitation of the primary means of financial
settlement for transactions in this area. Check
clearings through the Dallas Bank and its
?ranches increased from 1,202 items per day
III 1915 to 1 million items per day in 1963. Although the Transit Department has recently
automated some of its operations on high-speed
computers, this department, from the standpoint of personnel and budgets, still accounts
for a major part of the Bank's operations.
In still another role influencing regional deVelopment, the Reserve Banks have acted as
CASH RECEIPTS FROM AGRICULTURE
FIVE SOUTHWESTERN STATES
5,000
100
50
10
GOVERNMENT
PAYMENTS
19~2~5--~~19~3~O--~---19~45--~-----19~55~~~19~63
TRANSIT AND FISCAL AGENCY
OPERATIONS
fEDE RAL RESERVE BANK Of DALLAS
RAllO SCALf
M ILL I O t~ S
OF DO:'!..ARS
100,000
SO,OOO
CHECKS AND OTHER
TRANS IT ITEMS PROCESSED
10,000
S,OOO
1,000
500
U. S. GOVERN MENT SECURITI ES
ISSUED, EXCHANG ED,
AND REDEEMED
100 1-.--19
.....2-S---'----9-'-3S---'-----'94-S---'--19-'-SS--~19---'63
agents for the Treasury Department. Their
agency functions, enlarged by the Sub-Treasury
Act of 1920, have included the issuance and
redemption of Government securities, the distribution of Treasury currency and coin, the
handling of Treasury Tax and Loan Accounts,
and tile processing of the Treasurer's General
Account.
As agent for the Treasury during 1963, the
Fiscal Agency Department of the Dallas Bank
issued, exchanged, and redeemed more than 7
million Government securities for an amount in
excess of $11 billion. The growth of the N ation's public debt from about $60 billion in
1940 to $315 billion in 1963 is, of course, a
prime cause of the sharp rise in the volume of
such securities handled by this Bank. The service rendered the Treasury in marketing its large
volume of securities each year is complemented
by the service to the public and the financial
community in providing an inexpensive and efficient method of purchasing and selling security
investments. The geographical distribution of
the Reserve Banks and branches enables them
SOURC[:U.S. 0, PO rIIn Int 0' A'II,1cui, 101 r••
11
ORIGINAL BOARD OF DIRECTORS
(In first row, at right) Marion Sansom, Fort Worth; (at left) Frank Kell, Wichita Falls; (in second roW,
at right) Chairman E. O. Tenison, Dallas; (in middle) Felix Martinez, EI Paso; (at left) Oscar Wells, Hous·
ton; (in third row, at right) J. J. Culbertson, Paris; (in middle) E. K. Smith, Shreveport; and (at left) B.
A. McKinney, Durant. Deputy Chairman W. F. McCaleb, San Antonio, was not present when this
photograph was taken.
FEDERAL
RESERVE
BANK OF
DALLAS
The third home of the Bank,
located at Wood and Akard Street~d
the present site. Cornerstone lal
April 2, 1920. New quarters occu·
pied March 12, 1921.
12
. CURRENT BOARD OF DIRECTORS
.
D e~ted left to right) Max Levine, Houston; H. B. Zachry, San Antonio;
Hulcy, Dallas; J. B. Perry, Jr., Lufkin; Deputy Chairman Carl J.
an~"}sen, Dallas; Murray Kyger, Fort Worth; Ralph A. Porter, Denison;
. Edd McLaughlin, Ralls.
(s
Th .
Chairman Robert O. Anderson,
Roswell, New Mexico
Head Office Building of the Bank. View shows front
of old building, after remodeling, and new addition
at rear. Enlargement and remodeling completed in
fall of 1960.
13
to act as an ideal vehicle for nationwide processing of Treasury issues.
As a convenience to the Treasury, the Federal Reserve Bank of Dallas maintains the
Treasurer's General Account, accepting deposits and disbursing funds on that account.
The servicing of the Treasurer's account is important to the general public in providing
greater efficiency in the use of public funds.
The Reserve Bank, as agent for the Treasury
also services more than 1,000 Tax and Loan Ac~
counts of commercial banks, handling 181,980
deposit and collateral transactions in 1963.
It is also the responsibility of the Federal
Reserve Bank to distribute currency and coin
in order to meet needs for cash in financial
transactions in its area. The currency and coin
shipments from this Bank (including both
Treasury and Federal Reserve currency) have
VALUE OF CONSTRUCTION CONTRACTS
TEXAS
RATIO SC ALE
MILLI ON S OFDOL.LA AS
changed markedly, both in content and in volume, over the past 50 'years. In the early dayS
of the System, gold certificates, national bank
notes, and Treasury silver certificates formed
the primary supply of currency, and gold coins
were a sizable addition to the Nation's monetary stock. By 1918, Federal Reserve notes
were the dominant form of currency and noW
account for more than 90 percent of all currency outstanding. The basic coins of today
are of the same type as when the System was
founded. The primary change has been the
elimination of gold coins in 1933 .
Currency and coin shipments have expanded
materially with the growth of the economy, but
most of the gain has occurred in the post-World
War II period. In fact, the dollar volume of
such shipments from Federal Reserve offices
in this District - at about $220 million - was
virtually unchanged between 1920 and 1940
but, by 1950, had more than tripled to $705
million. During 1963, the Bank's Cash Department shipped more than $984 million in currency and coin.
Indicative of the primary use of checks and,
perhaps, the inflow of cash from other parts
of the Nation, the notes in circulation of the
Federal Reserve Bank of Dallas since 1920
have been consistently below the member bank
deposits, whereas the reverse relationship baS
prevailed at many other Federal Reserve
Banks. Not until 1963 did the note circulation
of this Bank exceed the deposit liabilities, and
total note circulation in 19.64 topped $1 billion
for the first time in the history of the Bank.
50
RESIDENTIAL
BUILDING
10
1:s.94iOo--1~94"5--~1~95;;:;0----;1-:::!95;:-5--~---,--J
1960 1963
SOURCE: FW. DOd QI Corporollon.
14
The Reserve Banks endeavor to see that only
fit money stays in circulation and , thus , retire
worn currency and mutilated coins when they
are returned from the commercial banks.
During 1963, the Federal Reserve Bank of pallas retired 27 million pieces of unfit Federal
Reserve currency and shipped them to Washington for destruction. In addition, 54 millioJl
WAGE AND SALARY EMPLOYMENT
FIVE SOUTHWESTERN STATES
r.....;..:;==---_ _ ____ _ ____--,
recommend new banking legislation and has
done so throughout its 50-year history.
tHOUSANDS OFPfRSONS
6.000
S.OOO
TOTAL
NONAGRICULTURAL
4.000
NON MANUFACTURING
~.OOO
900
800
SOO
~1~95~1~-1~95~3~~
195~5~~
19~
57~~19~59~~19~61~~19~63
SOU RCE: Sial, . mploym i llt 0v.ne i..,
P.ieces of U. S. currency were withdrawn from
circulation and incinerated at this Bank.
Other functions of the Reserve Bank are designed to strengthen the region's commercial
banks and smooth the handling of financial
transactions, thereby contributing to the growth
?f the regional economy. One of these functions
IS the Federal Reserve Bank's supervisory re:.ponsibility, implemented through its ExaminaIOn Department. The "Fed" examiners have
Provided guidance to the region's bankers in
the safe conduct of their business, giving advice
~nd counsel toward the end of improving the
hanks' services for their customers. Although
t e Reserve Bank examiners are charged with
~he examination of only state-chartered member
. anks, their influence and counsel are sought
~n the handling of supervisory responsibilities
Yother Government agencies , as well as the
ate banking departments. Moreover, because
of its intimate knowledge of member bank operations, the Reserve Bank is in a position to
~
In a more direct sense, the Federal Reserve
Bank of Dallas and the other Reserve Banks
are participating in the stream of bank credit
accommodation by standing ready to lend funds
to member banks to meet unusual and difficult
situations, such as unforeseen loan demands or
deposit withdrawals. As the lender of "last
resort," the Reserve Banks provide a flexible
credit cushion behind the commercial bank
activity and, yet, insist that, to the extent possible, the commercial banks provide credit
within their own resources.
The loan activity of the Federal Reserve
Bank of Dallas has reflected the varying economic position of the District, the status of
monetary policy and its impact upon bank reserves, and the shifting nature of banking over
the past 50 years. Early in the Bank's history,
many rediscounts 5 were made to accommodate
the seasonal requirements of banks. Even
today, the credit demands to finance a large
cotton crop often exceed the reserve capacity
of the local banks, and, until the crops are
harvested, Reserve Bank loans to these commercial banks are substantial. Rediscounts are
handled only on rare occasion now, since Government securities may be used for collateral. 6
In 1915, there were 360 banks borrowing
about $26.8 million from the Dallas Reserve
Bank, with all such borrowings representing
rediscounts. By 1920, total loans exceeded $2
billion for 702 banks, with almost 70 percent
secured by Government obligations. The loan
volume fluctuated from $300 million to $900
million through 1929 but fell sharply to almost
zero by 1934. Many of the longtime bankers of
this District remember the difficult periods of
5 Rediscounts are loans granted on eligible commercial or agricultural paper held by a commercial
bank.
6 Such loans are referred to as advances and are
made on a commercial bank's own note.
15
the 1920's and 1930's and the Reserve Bank
loans which enabled many banks to remain open.
During the Second World War, the Reserve
Banks aided the war effort by making loans to
industrial concerns which were engaged in producing war materiel and by processing loans
guaranteed by the U. S. Government. Regular
bank borrowings were minimal until after
World War II, as banks used the excessive reserves built up during the late thirties, a period
of slack bank credit demand.
Borrowings have fluctuated in the postwar
period according to the relative ease or tightening of bank reserve positions. At the peak of
each business cycle in the 1950's, borrowings
expanded, and since 1961 there has been a
fairly steady rise. During 1963, the Federal
Reserve Bank of Dallas accommodated 50
member banks, with daily average loans
amounting to more than $16 million and total
advances during the year reaching $2.2 billion.
MEMBER BANK RESERVES
ELEVENTH FEDERAL RESERVE DISTRICT
RATIO SCALE
MIL.LIONS OF DOLLARS
IAlofYlar-lnd CCl ll dQ 'ul
2,000
ALL MEMBER BANKS
10 L---~193~5----~--~19~45~--~--~1~
95~5--~-1~
96~3
16
A new record for dai~y loans was reached in
early 1964, when a few banks borrowed a total
of $138 million.
Banking procedures and practices have
changed so that demands for Reserve Bank
loans normally come from a relatively feW
banks, although the borrowing privilege is available to all member banks. The development
of the correspondent banking network, increasing interbank loans from large banks to small
ones and increasing participations and sales
of loans between banks, has afforded supplemental means for adjusting strained reserve
positions. At the larger commercial banks, the
increased use of Federal funds and, more recently, the greater utilization of negotiable
time certificates of deposit' have provided other
supplemental adjustment procedures. It should
be recognized that the supplemental means of
adjustment are possible only if banks can make
the shifts among themselves, an assumption
which is based on no overall tightness in reserve
positions in the banking system. These adjustment means are available under specified conditions and, thus, are limited in terms of complete reliability.
Reserve Bank credit, on the other hand, baS
no limitation as to source since it relies UpOD
the credit creation powers of the central bank,
rather than the use of existing reserves alreadY
in the banking system. The total quantity of
Reserve Bank credit provided must, of
course, be in keeping with the ' prevailing
monetary policy.
The current pattern of borrowing from the
Dallas Reserve Bank includes (1) a few large
city banks which are unable to obtain sufficient
funds for a short period of time or which have
attempted to keep all assets working so intensively that a sudden deposit loss results in a
deficient reserve position, (2) several country
banks borrowing for seasonal needs, and (3) a
small number of banks trying to meet unusual
local situations.
· Borrowings from the Federal Reserve Bank,
accordance with existing legislation, must be
secured by Government securities or eligible
paper, unless a Section lOb loan 7 at a penalty
rate is made. Generally, eligible paper must
reSUlt from financing the production distribuf lon, Or marketing of goods. Agricultural
'
paper
cannot mature in more than 9 months from the
date of the Reserve Bank loan and commercial
paper must mature in less than 90 days. In
..
rec
ogOitIon of the need to modify regulations
set forth to meet conditions of an earlier era
fu
I e. Federal Reserve has requested a change of'
eglslation by Congress to eliminate eligibility
re .
qUlrements and permit the Federal Reserve to
ll1ake loans on all notes acceptable to the Reserve Banks without imposing a penalty rate.
MEMBER BANK DISCOUNTS
AND ADVANCES
In
FEDERAL RESERVE BANK OF DALL AS
DIu. rONS OF DOLLARS
4
TOTA L
BORROWINGS
NUMBER OF
BORROWIN G BAN KS
200
Over the 50 years, discount rates at the Federal Reserve Bank of Dallas have fluctuated
~?arply, with the basic rate ranging from as
Igh as 7 percent to as low as 1 percent. In
add ' .
ltion, there were times in the first 10 years
when graduated rates were assessed upon ex~essive borrowers. When this Bank opened, its
13 oard of Directors, with the consent of the
d.oard of Governors, established a two-part
GIScOunt rate ranging from 6 to 61h percent.
h.enerally speaking, rates were at a fairly
Igh level through the 1930's' during the
1940's, however, first as a par~ of the war
eff~rt and then in line with a national policy to
~eslst a postwar recession, discount rates were
eld at a relatively low level.
In 1951, an accord between the Federal Reserve and the Treasury freed the Federal Reserve System J:rom
;:
. wartlme
.
.
ltS
commitment
to
SUPport U. S. Government security prices at par
and: th us, ena bled the System to return to a
fie
xlble monetary policy as a means of counter-
--
er:I'1loan authorized under Section lOb of the FedbO rr e.serve Act is one secured by any asset of the
a ra~WIng bank acceptable to the Reserve Bank but at
rate. e one-half of I percent above the basic discount
0 L-~~~~~~~~~~~~~~
19 15
1925
1935
1945
1955
1963
ing inflationary or deflationary trends in the
economy. As of mid-October 1964, the Federal
Reserve Bank of Dallas had a basic discount
rate of 3Yz percent, established on July 17,
1963.
Discount rates initially were established on
a regional basis and frequently varied among
the Reserve Banks. However, with money
markets broadening and funds moving with
greater ease to all parts of the Nation, discount
rates have shown greater uniformity. Since
World War II, differential discount rates among
Reserve Banks have existed for only a month
or two, largely reflecting differences of opinion
concerning the rate change or mere differences
in the meeting times of the Reserve Bank
directors.
Although a largely uniform System approach
to discount rate changes has now developed,
this uniformity has not completely eliminated
the regional characteristic of the rate. The discount rate is still the rate which the commercial
banks must pay in order to borrow from the
Federal Reserve Banks and, as a result, is an
17
important factor in the structure of rates to be
charged by commercial banks to their borrowers or paid to depositors who place their savings with the commercial banks.
The Federal Reserve Bank's role in southwestern development has been furthered by its
position as a major source of economic and financial intelligence. The Federal Reserve Bank
of Dallas collects, compiles, and analyzes data
on economic, banking, and financial trends in
the Southwest and provides this information to
the general public through such regular publications as the Business Review, Agricultural
News at the Week, and Farm and Ranch
Bulletin. The Bank's Research Department,
with its staff of highly trained economists, prepares needed analyses of both regional and national economic trends. These analyses are
used to help the Reserve Bank directors and
officers discharge their responsibilities for maintaining close contact with the regional economic
and financial situation.
Thus, the role of the Federal Reserve Bank
in southwestern development is oriented toPERSONAL INCOME
FIVE SOUTHWESTERN STATE S
TOTAL :
OILLIONS OF DOLLARS
PER CAPITA :
DOLLARS
45
2,250
2,0 00
PER CA PITA
PE RSONAL INCOME
40
1, 750
1,500
30
1,250
25
1,000
20
750
15
TOTAL
PER SONAL INCOME
10
CRUDE OI l. PRODUCTION
RATI O SCAL£
IroIILUONS OF QARRELS
5,000
50
5
SOURCfl U,S,Bur. ou 01 Min."
ward service to the general public. There is,
however, a broader aspect of the Reserve
Bank's responsibility, one which only partially
refiect~ its regional orientation. The Federal
Reserve Bank of Dallas is the representative of
the Eleventh Federal Reserve District (1) in
the presentation of economic and financial statistics on the Southwest for national monetary
policy consideration and (2) in reporting the
effects of such policies in the analysis of the
impact of monetary and credit policy on the
Nation as a whole. In this respect, then, the
F ederal Reserve Bank of Dallas participateS
with the other regional Reserve' Banks and the
Board of Governors in the development, execution, and assessment of monetary and credit
policy for the Nation. It is in this role that the
regional Bank provides part of the broad dispersion of judgment which is highly important
in the decentralization concept of a central
banking system.
Monetary Policy Participation
SOuRCE: U.S Depor ' mln l or Comm ' fet .
18
The participation of the Federal Reserve
Bank of Dallas and other Reserve Banks in
monetary policy determination has changed
m~rkedly over the 50 years of the System's
eXIstence. In the original act, the participation
of the directors and officers of the Banks was
largely limited to the initiation of changes in
the discount rates and the administration of
d'
.
ISCOunt policy. As has been pointed out, however, these were the two basic monetary policy
measures in the early life of the System.
. In the System's 50-year history, responsibilihe.s for monetary policy determination have
shIfted significantly. First, an increasing central" .
IzatlOn of authority has occurred by custom
~nd by changes in personalities at the various
eserve Banks and at the Board of Governors.
~eeond, legislation, particularly in the 1930's,
rought formal participation by the Board of
Governors in the newly formed Federal Open
Market Committee. Although Federal Reserve
~urchases and sales ' of Government securities
a~ been made sporadically in the 1915-30
~enod by individual Reserve Banks and had
een partially systematized throuah a commit:~e of Reserve Banks, this legisla~ive action in
he 1930's brought the Board of Governors and
~ e Reserve Banks into a new interrelationship
In the handling of open market transactions,
R.
A.t present, the participation of the Federal
eserve Bank in monetary policy formulation
and execution rests largely on, and is the prime
~esponsibility of, the president of the Bank, He
~ a member, by rotation, of the Federal Open
t arket Committee, which meets every 3 weeks
? determine major monetary policy deciSiOns D'
.
.
ISCUSSIons at these meetmgs cover
h '
C anges in Virtually all Federal Reserve System
Illonetary policy actions, including discount
r~tes and reserve requirements; but such conSiderat'
..
fl'
Ions are purely adVIsory,
smce forma I
~~tton on these latter policies is handled in a
b~erent manner. It is the president'S responsin t~ to be thoroughly informed on the eco~mIC and financial conditions within his Dist tlet
an d to report to the Federal Open Market
Committee developments which he deems important to the policy determinations of the
future, He must also be fully cognizant of national and international trends in order to make
informed judgments on appropriate national
monetary policies.
It is the responsibility of the president of the
Bank to recommend to the Bank's Board of
Directors the discount rate changes which might
need consideration and, internally, to administer the "discount window." Sharing this responsibility with the president of the Bank are
the directors and the other officers. It is the
job of the directors of the Head Office to review economic developments at their meetings;
to keep the management of the Bank apprised
of developments which might be important in
the consideration of monetary policy; and, subject to review and determination by the Board
of Governors, to establish the discount rate of
the Bank,
The director's job at the Federal Reserve
Bank also encompasses many of the usual functions of a director of a private corporation,
including the approval of budgets, supervision
of expenditures, employment of senior personnel, and continuous advice and counsel on the
operating and management problems of the
Bank, While the directors of the branches of
the Federal Reserve Bank participate in a less
formal manner in monetary policy actions, the
branch directors are responsible for a continuous flow of economic and financial reporting
and appraisals and are charged with the responsibility of keeping the officials of the
branches - and, through them, the management of the entire Bank - informed on developments in their respective territories,
This broad system of reporting is probably
one of the greatest strengths of the Federal
Reserve System, It provides a continuous flow
of up-to-date, accurate economic appraisals at
local, regional, and national levels.
19
Personnel of the Reserve Bank
The heart and core of any institution, particularly one dealing with as sensitive a subject
as the monetary policy of the Nation, are its
employees. Although it is impossible in this
short presentation to give individual recognition
to all of the faithful and dedicated workers
who have participated in the building and development of the Federal Reserve Bank of
Dallas, it is realized that there have been and
are a large number of employees who have
been devoted to their work at this Bank beyond
the normal "call of duty."
The accompanying list shows the chairmen
and presidents who have guided this institution
since its organization. It may be noted that,
over the 50-year period, the Federal Reserve
Bank of Dallas has been led by only ten chairmen and six presidents (prior to 1935, the
latter were known as governors).
Employment at the Federal Reserve Bank of
Dallas and its branches rose steadily through
the early years and then spurted sharply during
World War II to a record level of 1,573 on
August 31, 1943. Since the war, employment
has declined to a fairly stable total of just below
1,000. As of September 30, 1964, the Dallas
Federal Reserve Bank and its branches employed 980 people, of which 538 were at the
Head Office, 187 at Houston, 171 at San Antonio, and 84 at EI Paso. Approximately 25
percent of the employees have been with the
Federal Reserve Bank for more than 15 years.
Reflecting the changes in the institution, the
demand for specific talents in jobs has increased
greatly. Thus, employees of the Reserve Bank
are engaged in a wide range of occupations, including clerks, guards, pressmen, computer
programmers, economists, and lawyers. By far
the greatest number of , employees of the Reserve Bank - accounting for about 37 percent
of the work force - is in the Transit Department, processing checks which flow into the
Bank and its branches at a rate of more than a
million items per day. The second largest number of employees, representing about 25 percent
of the total, is in the Service Department, handling the security of the Bank, building maintenance, the print shop, stocks of supplies, and
cHAIRMEN AND PRESIDENTS OF THE FEDERAL RESERVE BANK OF DALLAS
Chairmen
E. O. Tenlson . . . . .
..
W. F. Ramsey . . . . .
. ...
W. B. Newsome . ... . ........
Lynn P. Talley .. ... . . .......
C. C. Walsh .. . .. .. . ... •.....
J. H. Merritt ... ..
. ..
Jay Taylor ..... . ............
J. R. Parten .
. ... .. ... .
Robert J. Smith .
. ...
Robert O. Anderson .... . .. . ..
Business Affiliations
Tenure of Office
Banker (Da ll as) .. ...... .. .......... . ...•... . . November 1914·January
Attorney (Austin) . .. ...... . ...... . ..•.... . ...... January 1916·0ctober
Investments (Dallas) ...... .. .
. .•.....•..... November 1922·March
Banker (Houston) . . . . . . . . . .
. . . . . .. ... . ...... .. March i923·June
Banker (San Angelo) ............ .. ..•....• . .. . ... July 1925·December
Oil and Investments (McKinney) . . ..•. ..... ..... Januilry 1938·December
Livestock (Amarillo) . ....... . . . ....... . ... . ... J anuary 1942·December
Oil (Houston) .... . .. . ... . ... . ..... .. . .. .. ... . January 1946·December
Airlines (Dallas) .....
. ......... . .. . ..... . January 1955·December
Oil and Cattle (Roswell, New Mexico) .... . ... . .. . .... .. January 1961 to
1916
1922
1923
1925
1937
1941
1945
1954
1960
date
Presidents •
Oscar Wells . . . . . . . . . . . . . . . . . . • . . . . . . . . . . . . . . • • . . . . .. . . .
. .•.. . .. November 1914·February 1915
R. L. Van Zandt. . . . . . . . . .• . . . . . . . . •. . . . •. . . . . . . .
. .. . . . .......... February 1915·January 1922
B . A. McKinney ... . ..... ... ...•...•... . ... . ................. .. ... .... .... . .. . . January 1922·May 1925,
October 1931·April 1939
Lynn P. Talley .................... . .............. • •. . ...• , . . . . .. . .. .. .. .. ... . . May 1925·0ctober 1931
R. R. Gilbert ...... .... .... . ..• . . .. •...... .. .. . . ..... . .......... . .. ... •• .. .... . April 1939·August 1953
Watrous H. Irons . . . . . . . . . . . . . . . . . . . . . • . . . . . . • .
. ..... . .•... . .. . ......... February 1954 to date
• Prior to 1935, known as Governors .
20
a host of other duties which are necessary to
tnaintain the physical facilities of an institution
of this size.
In addition to these two large groups, there
~re a number of smaller departments - includ~g Accounting, Fiscal Agency, Examination,
esearch, Auditing, and Cash - in which employment ranges from 2 percent to 8 percent
of the total work force. The other employees
~re engaged in the Personnel, Machine Process~g, Bank and Public Relations, Loan, and
egal Departments of the Bank.
'I'he Bank's Financial Structure
The Federal Reserve Bank of Dallas and all
Ot~er Reserve Banks are self-supporting institUtIOns by virtue of their unique ability to create
Cr d·
. ~ It. Bach disbursement by a Reserve Bank
Injects new funds into the banking system. For
~}(aDlPle, the purchase of Government securities
Y the Federal Open Market Account is accomplished by the issuance of a check which
wh
'
,
d en cleared by the Government securities
ealer through a commercial bank is credited
~ h
b
t at bank's reserve account. (If' a member
auk wishes to receive cash instead of a reserve
aCCOunt credit, the Reserve Bank provides currency.) The Reserve Bank primarily obtains its
~perating revenues from its share of the securitIes .
In the Open Market Account and, to a
~UCh smaller degree, from interest charged for
IScOunts and advances. Within the past few
~:a~s, System operations in foreign currencies,
h SIgned to help protect the value of the dollar,
aVe also provided some revenues.
At the Dallas Reserve Bank during 1963,
Cllrrent operating earnings of $46.4 million
~preSented interest received on holdings of
t oVernment securities ($45 .6 million), inerest·
.
($
earnmgs on discounts and advances
eraS~S,957), earnings on foreign currency opi hons ($116,460), and miscellaneous earnvllg~ ($22,852). The relative importance of the
anous Sources of revenue has shifted consider-
ably over the 50-year history of the Bank.
Through 1920, about 80 percent of the $10.6
million of cumulative earnings since organization came from income on discounts and advances. It was not until 1924 that income from
securities exceeded the revenues from loans,
and these two sources vied for first place for a
number of years subsequently. However, 1929
was the most recent year in which earnings
from discounts and advances exceeded income
from securities. Since World War II, revenues
from security holdings have averaged more
than 95 percent of total revenues.
Annual expenses of the Federal Reserve
Bank of Dallas grew slowly during the early
years, reaching more than $1 million in 1920
but not surpassing $2 million until 1941. The
pressure of wartime operations raised current
operating expenses to over $3 million in 1943.
Postwar expansion has brought continued increases, and expenses exceeded $4 million in
1949 and $10 million in 1963.
The prime items of expense have shifted with
the growth of the Bank, though salaries and
related benefit costs have consistently absorbed
about 50 percent of the total expenses. Thus,
in 1920, salaries were about $825,000 of a
total expense of $1,549,000; in 1963, salaries
and related benefits cost $5,453,000 of the total
$10,050,000 expense. Furniture and equipment rentals, reflecting greater use of electronic
computers and other machine equipment, now
account for 5 percent of all expenses; and postage and expressage costs absorb an additional
10 percent. The latter costs reflect the marked
increases in postal rates, as well as sizable increases in the volume of mailings from the
Bank.
The basic financial position of the Federal
Reserve Bank of Dallas has grown with the
southwestern economy, as shown in the accompanying illustration. On December 29, 1915
(at the end of the first year of operation), total
resources amounted to $21,799,205, and paid-
21
RESOURCES AND NOTES IN CIRCULATION
FEDERAL RE SERV E BAN K OF DALLAS
RATIO SCALE
MILLIONS OFOOLLAR5
5,000
1,0 00
The Federal Reserve Bank of Dallas has
performed its assigned functions for 50 years
and has returned to the U. S. Government more
than one-quarter of a billion dollars. The Bank's
assets have multiplied as it created funds to
serve the people of the Southwest.
The Federal Reserve in the Future
500
100
L
NOTE S IN
CIRCULATION
I 0 L-----'-_--'-_~_:':_-,------'-----:'_:_::_-:':--:_:_:_::-~
19 15
19 25
1935
1945
1955
1963
in capital reached $2,752,816. By the end of
1920, resources had multiplied to more than
$173 million, and capital and surplus were in
excess of $8 million. There was little change
through 1930 but a steady expansion thereafter, so that resources were $413 million in
1940 and $1,807 million in 1950. At the end
of 1963, resources of the Bank reached $2,216
million, and capital and surplus amounted to
$85 million.
Gold certificate reserves increased from $13
million in 1915 to $550 million in 1963. The
Bank's gold reserves reached over $648 million in 1950, but the outflow of gold during
the 1950's and 1960's, stemming from the Nation's balance-of-payments deficits, has reduced gold holdings of the Reserve Banks.
. Another balance sheet item of considerable
significance is the Bank's holdings of U. S.
Government securities. This total moved from
$12.2 million in 1920 to $84.9 million in 1940
and then jumped sharply to $940.0 million in
1950. A further rise to $1,286 million occurred
by 1963, as increased emphasis was placed
upon open market purchases to supply new
reserves to the banking system.
Looking to the future on the basis of the
past record of the Federal Reserve System and
the Federal Reserve Bank of Dallas, one might
visualize the continued evolution of a publiC
service institution which, while modifying its
basic format and learning new ways of accomplishing its responsibilities, still concentrates
on its prime objective of improved service to
the American people. Its goals are: improving
its contribution to a national monetary policy
designed to protect the value of the dollar and
stimulate economic growth; providing sound
guidance to the commercial banks through
examining and appraising their loans, investments, and general practices; assisting the
Treasury in marketing the public debt and ill
handling Treasury transactions at the regional
level; improving the efficiency of the check collection mechanism; and supplying the regional
economy with currency and coin.
The accomplishments of the Federal Reserve
System and its regional Banks in providing ecOnomic and financial leadership have been carried out within the framework of the Americall
free enterprise system. These .have been facilitated partly because of the position of the celltral bank between the public and private
sectors of the economy and partly because of
the regional strength built into the Systerll
through the Reserve Bank structure, including
the broad participation of leading business and
professional men on boards of directors. perhaps of even greater importance, the Systerll
has been independent within Government to
concentrate on its job of providing the monetary policy most appropriate to the basic ecOnomic and financial condition of the Nation·
SliATISTICAL SUPP~EMENT
to the
BUSINESS REVIEW
November 1964
FEDERAL RESERVE BANK
OF DALLAS
RESERVE POSITIONS OF MEMBER BANKS
CONDITION STATISTICS OF WEEKLY REPORTING
MEMBER BANKS IN LEADING CITlES
Eleve nth Federal Reserve Di strict
Eleventh Federal Reserve District
(Averages of doily flgures. In thou sa nds of dollars)
(In thou sonds of dollo rs l
-:;:.
4 weeks ended
Oct. 7, 1964
4 weeks ended
Sept. 2, 1964
61 1,757
570,240
41,5 17
606,869
4,888
30,506
-25,618
594,299
552,793
41,506
588,963
5,336
24,286
- 18,950
599,480
557,582
4 1,898
596,0 15
3,465
9,99 1
-6,526
566,132
433,474
132,658
526,318
39,814
9,657
30,157
558,304
426,687
131,617
5 18,660
39,644
10,526
29, 11 8
535,3 24
412,66 1
122,663
492, 118
43,206
3,520
39,686
1,177,889
1,003,7 14
174, 175
1,133,187
44,702
40,163
4,539
1,152,603
979,480
173, 123
1,107,623
44,980
34,81 2
10, 168
1,134,804
970,243
164,561
1,088, 133
46,67 1
13,5 11
33 ,1 60
5 weeks en d ed
Oct. 30,
1963
Commercial and industrial loans •.............
Agricultural loans..•...... .. ............ ...
Loon s to brokers and deal ers for
pu rchasin g or carrying :
1,993,318
60,555
2,056,572
57,204
1,890,790
45,073
U. S. Gov ernment securities ... .............
Other securities ............ . ...... .. ....
274
38,920
6,274
41,896
274
56,553
2,383
269,282
112,782
4,674
1,980
269,987
68,073
4,560
1,582
248,299
11 4,378
2,326
All other loans ••••••. .••..••... •...• ....••
115,387
299,900
379,975
1,160,898
114,860
320,906
387,033
1,164,200
98,207
259,659
348,642
945,701
Gross loons ...•.... . ............ .......
l ess reserves and unallocated charge-offs . .
4,438,348
75,832
4,493,545
75,166
4,0 11,484
68,833
N et loan s.. . .. ... .. . ........... . .......
4,362,516
4,4 18,379
3,942,651
Treasury bills ... .. .... .. .. . . . .. ... , .......
Trea sury ce rtiflcat es of indebtedness •.... . .. ..
Treasury notes and U. S. Governme nt bonds,
including guaranteed obligations, maturing:
Within 1 year .... .•.... ....... •. . .. ....
215,749
0
96,756
0
113,965
68,757
Oth er securities ...........................
140,849
706,334
40 1,508
756,990
13 1,652
642,596
474,736
740,204
136,267
73 1,007
437,967
650,367
Total inve stme nts .. . .... . ..... . ..........
2,221,430
2,085,944
2,138,330
Ca sh items in process of coll ection •. . . ... . ... .
Balances with banks in the United States .......
Balances with banks in foreign countri es ... . •..
Currency and coin . . ... . ...................
Rese rves with Fed eral Reserve Bank ••.•....•..
Oth er assets •••..•........................
637,826
461,132
3,4 15
66,32 1
569,837
284,553
TOTAL ASSETS •••••..••. • ••..•..•••••
8,607,030
8,551,276
7,924,480
Date
Total
Reserve
city banks
Country
banks
Total
Rese rv e
city banks
Country
bonks
3,247,017
3,234,192
3,1 76,464
1962: Septembe r.
1963: Se ptember.
1964: Ap ril ••..••
May .••..•
8,194
8,407
8,422
8,249
8,282
8,3 14
8,3 13
8,530
4,096
4,150
3,975
3,938
3,934
3,941
3,957
4,090
4,098
4,257
4,447
4,3 11
4,348
4,373
4,356
4,440
3,357
4,044
4,483
4,524
4,563
4,573
4,585
4,689
1,666
2,014
2,214
2,235
2,250
2,249
2,262
2,354
1,691
2,030
2,269
2,289
2,3 13
2,32 4
2,323
2,335
Oth er loans for purc ha sing or carrying:
U. S. Governm e nt securities ....... ... ......
Other securities .. .. . . .......... .. .......
loans to dom estic commercia l bonks ... . .......
loan s to foreign bonks ..... ...... . .. . . . ....
loons to other flnancial institutions:
Sal es Anance, personal Anance, etc . . .. ......
Savings banks, mtge . cos., ins. cos., e tc ... .. . .
Real estate loons.. . .....•. . .. .... . .. . .... .
After 1 but within 5 years •• •..• • . .•. . . • .••
After 5 yeors .•... •. . • ... . .. •..•.. . •...•
D emand deposits
Indivi dual s, partnerships, and corporations ... .
Foreign governments and offlcial institutions,
central banks, and international in stitu tions .•
U. S. Governm ent .... . . ......... .. . .. . ..
States and political subdivisions ............
Bonks in the Unite d States, Including
mutual savings bonks. ..... . . . ... . . .... •
Bonks in foreign countries • .. .. .. .. ........
Certified and offlcen' ch ecks, etc ...........
2,906
157,644
243,245
4,065
218,488
217,438
2,697
68,545
2 13,852
1,048,466
16,228
100, 166
1,089,538
16,073
52,064
1,055,652
13,124
55,550
Total demand deposits •• .••• • ..••. • ••••
4,815,672
4,83 1,858
4,585,884
1,192,976
1,135,559
1,180,497
1,125,466
1,097,058
930,927
500
3,944
340,226
500
3,949
327,682
505
5,052
311 ,250
Time and savings depo sits
Individuals, partn erships, and corporations
Savings deposits ••. . .............. . ...
Oth er time depo sits ....... . .... ........
Foreign governments and offlcial institutions,
central bonks, and international institutions •.
U. S. Government, including postal savings ...
States and political su bdivi sio ns . ...........
Bonks in the United St at es, including
mutual savings bonks................ . ..
Bonks in foreign countries ... . ... ..... .• . ..
7,556
2,300
7, 11 4
2,300
12,059
2,400
Total time and savings d e posits ..••.....•
2,683,061
2,647,508
2,359,251
Total deposits •••••••••• . •••.•....•.
Capital accounts ..........................
7,498,733
210,000
174,329
723,968
7,479,366
190,151
164,221
717,538
6,945,135
163,075
124,801
691,469
TOTAL LlA81LITIES AND CAPITAL ACCOUNTS
8,607,030
=
8,551,276
7,924,480
Bill s pa yable, rediscounts, etc ... . ..... . ......
All other liobilitles ..••.••.•••.••.••......••
r-
RESERVE CITY 8ANKS
Total reserves held . . . .... . ....
With Federal Reserve Bonk ....
Currency and coin ...........
Required reserves ........... ..
Excess rese rves .. •........ . . . .
Borrowings . ..... ... ..........
Free rese rves . .. ..............
COUNTRY 8ANKS
Total reserves hel d . ... .. . . .. ..
With Fe d eral Reserve Bonk ... .
Currency and coin .. .... .... .
Require d reserves . •.. .. .. ... ..
Excess reserves ..•............
Borrowings .......... . .... ....
Free reserves ........ . ........
ALL MEMBER BANKS
Total reserves held ...... .•.. ..
With Federa l Reserve Bank ....
Currency and coin . . ... ..... .
Required reserves .• ... ... . ....
Excess reserves ...• ... .. .. .. ..
Borrowings . ......... .. .......
Free reserves •................
Revised.
CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS
El eve nth Federal Reserve Di strict
(Averages of dail y flgures. In millions of dollars)
;:::::::.
GROSS DEMAND DEPOSITS
Jun e ... • ..
Jul y •••• •..
August •• : .
September.
TIME DEPOSITS
Item
Oct. 28,
1964
Sept. 23 ,
1964
Oct. 30,
1963
Total gold certiflcate reserves .............•
Di scounts for mem b er bonks . ......... . .. . . .
Other di scounts and advanc es .... ......... .
U. S. Government se curiti es ......... •.... ...
Total earning a sse ts.............. ........ .
Member bonk reserve d eposits ..... . .. . .. .. .
Federal Re serve notes in actual circulation •••••
536,766
5 1,316
114
1,410,726
1,462,156
925,743
1,044,675
522,82 1
54,233
57
1,368,283
1,422,573
897,355
1,034,758
531,536
22,645
1,7 10
1,285,776
1,310,131
861,144
947,860
-......--
CONDITION STATISTICS OF ALL MEMBER BANKS
Eleventh Federal Reserv e Di strict
(In millions of dollars)
==================================================~
Item
Se pt. 30,
1964
Aug . 26,
1964
7,361
2,5 19 .
1,52 1
898
196
1,1 24
6
784
533
7,302
2,519
1,512
862
19 1
1,050
Sept. 25,
1963
~--~-----------------------------------------------~
ASSETS
loan s and di scounts...... ..... .. .. . ... . .
U. S. Government obligations . . •......•...
Other securities .• .... ....•• ........ ....
Reserves with Federa l Reserve Bank .. ••....
Cosh in vault e ... ... .. . ... •..... ...... .
Ba lan ces with bonks in the United States .•..
Balances with banks in foreign co untries e ... .
Co sh items in process of collection ... ..... .
Other a sse tse •••..•.•.• . •....... ... .. ..
TOTAL ASSETse •••. •..• . .• ••. . ••••• •
5
679
352
14,472
Ll A81L1TI ES AND CAPITAL ACCO UNTS
(In thou sonds of dollorsl
-
GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS
552,799
454,999
3,201
64,437
505,95 1
262,1 12
696,168
470,614
3,425
66,620
532,865 ,
277,261
LIAB ILITIES AN D CAPITAL ACCOUNTS
2
Oct .2,1963_
Se pt. 23,
1964r
ASSETS
I
Item
Oct. 28,
1964
Item
D emand d eposits of bank s . .. .. .. ...•.. ..
Other d em and d e posits ......... . .. .• ....
Time d e posits.. ...•... . . . • .. ... .... •. ..
1,328
7,366
4,609
1,225
7,053
4,584
Tota l deposits •••.•.•.•..••.••..•.•..
Borrowings e ... . ... . . .....•... . .. ..... .
Oth er liabilities e ..... .... . ............ .
Total capital accounts e ................. .
13,303
180
204
1,255
12,862
147
210
1,253
TOTAL LI ABILIT IES AND CAPITAL
ACCOUNTSe •..•...•... ••...••.••.
14,942
14,472
6,50 1
2,806
1,355
887
184
1,1 7~
-
7 12
381
~
1,359
7, 108
4,047
12,514
146
176
1,1 70
-
~
------------------------------------------------------------~
-~e - Es timated.
BANK DEBITS, END-OF-MONTH DEPOSITS
AND ANNUAL RATE OF TURNOVER OF DEPOSITS
INDUSTRIAL PRODUCTION .
=
(Seasonally adiustea, indexes, 1957· 59
100)
(Dollar amounts in thousands)
~:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
Area and type of index
De bits to demand
deposit accounts l
Demand deposits I
-
Sept.30,
1964
Sept.
1964
Aug.
1964
Sept.
1963
$ 15 8,568
22.2
21.2
20.8
19
5
63,265
171,650
22.3
23.9
23 .4
23.6
20.9
22.9
5
-12
32,853
17.5
16.7
18.8
115,385
0
A:~{ilIo ..... ... ....
292,818
3
B n •••• ..••. . ••.•
290,605
-6
Ceaumont •. . ••..• . •.
20 1,540
-2
Corpus Christi ••. • ..••
235,108
4
Dorsicana ... ..... . ..
20,409
7
Elallas •. . •.•.. .•••.• 3,760,014
-2
F Paso •••..••.•••••
34 1,290
- 1
Worth ••.•••••••
845,592
1
H alyeston • •••. .•...•
99,000 - 14
l Custon • •••..••. '"
3,680,428
2
Laboda .•... .• ••.. ••
36,749
3
pU bock •••.••.•••••
227,922
5
sort Arthur • ••• • • ..••
63,659
- 1
San Angelo ••••.. '"
61,998
2
Tan Antonio ..• •..•••
793,030
6
eXarkana 2
28,409
-7
~I.r •.• . • . .. ••..•••
107,690
2
W?co • •...•..••..• •
129,828
1
Ichita Falls • . •. ••••
131,844
3
Tatal_24 ..
---____ cities ..••••.. $ 12,260,533
0
12
24
9
1
16
-2
14
1
5
2
13
12
14
6
7
12
-3
9
7
9
68,155
123,472
173,390
108,273
120,577
2 1,522
1,384,557
183,1 .9 0
422,424
61,508
1,635,180
25,877
130,322
42,142
49,407
440,061
19,666
71,484
85,414
101,705
20.3
29.0
20.3
23.0
23.4
11.4
32.9
22.7
24.1
19.3
28.1
16.9
21.1
17.8
14 .9
21.5
17.4
18 .1
18.4
15.6
17.6
20.4
23.2
27.6
19.8
22.0
22.8
24.4
22 .8 20.8
11.6
11.0
30.0
34.1
23.9
23.2
23.9 23.8
19.3
22.4
28.7 25.9
15.2
16.6
19.8
20.2
17.4
18.1
14.4 13.6
20.4
20.3
19.0 18.6
17.2
18.0
18.5 20.3
14.2
15.1
26.2
26.6
September
1964
Area
ARIZONA
Tucson •• •.... •••••. • $
LOUISIANA
~onro e .••• ..•.•••..
292,762
rovapart . . .. . " ...
110,137
346,558
NEW MEXICO
TE::~well •••. . ••.•••••
47,758
~bil.n • .• • •.••.•••..
elm
'lJ~d~:'p?Sits
.,
ISlons.
Aug.
1964
Sept.
1963
4
12
$5,694,662
August
1964
Jul y
1964
September
1963
131
148
144
151
108
127
143
138
146
106
129
145
141
148
107
123
137
130
14 1
106
134
135
136
134
113
152
134
135
136
133
113
152
133
134
135
133r
Illr
151r
126
126
126
127
110
142
TEXAS
Total industrial production .... ... .
Annual roto
of turnover
Percent
change from
Se ptember
1964p
Manufacturing . ............. .
Durable . .. . ............. .
Nondurable •...•......••.•
Mining .................... .
UNITED STATES
Total industrial production ... .. . . .
Manufacturing . ............. .
Durable ••.....•..........
24.5
Nondurable . .... . .... . .. . .
Mining ................... . .
Utilities .... . .... ... ..... .. . .
p Preliminary.
r - Revised.
SOURCES , Board of Governors of th e Federal Re se rve System.
Federal Reserve 80nk of Dallas.
NONAGRICULTURAL EMPLOYMENT
Five Southwestern States'
Porcent change
Numb er of persons
Manufacturing ... ........
of individuals, partnerships, and corporations and of states and politicol
bo'" ~h ~s o flg ures include only two banks in Texarkana, Tex as. Totol debits for all
ornn S In Texarkana, Texas-Arka nsas including one bank located in the Eighth Di st rict,
aUnted to $56,595,000 for th e ;"onth of Sep tember 1964.
Sept.
1964p
Aug.
1964
f9t~;
4,895,900
858,600
4,037,300
236,600
333,700
4,861,200
853,700
4,007,500
239,400
336,000
4,783, 100
836,300
3,946,800
230,900
330,200
0.7
.6
.7
-1.2
-.7
2.4
2.7
2.3
2.5
388,400
1,167,000
248,700
702,BOO
960,100
390,100
1,164,400
250,800
707,200
919,600
386, 100
1,142,300
240,500
682,500
934,300
-.4
.6
2.2
3.4
3.0
2.8
Type of emp loyment
Totol nonagricultural
wage and sa lary workers..
Nonmanufacturing . .......
Mining .............. .
Construction . .. ........
Transportati on and
public utilities ••. .....
Trade • .••..••.. ... •••
Finance .• •. .. .. .. .....
Service .. .............
Government . ..........
Sept. 1964 from
Aug.
1964
Sept.
1963
1.1
.2
-.8
-.6
4.4
Arizona, louisiana, New M ex ico, Oklahoma, and Texa s.
p Preliminary.
r - Revised.
1
SOURCE , State employment ag e nci es.
INDEXES OF DEPARTMENT STORE SALES
Eleventh Federal Reserve District
= 100)
(Doily average sal es, 1957·59
~~~~~~~~~~~~================
:---.
Dote
19
19663 , Se P tem ber •..•. •• ..••• • • • ••••
·~D···· •.•·.• ·. · •· .• • ·.
~tember •• . . •.... • ... ••...•
Seasonally
adlusted
BUILDING PERMITS
Unadjust ed
107
113
121
113
116
125
111
120
126
126
128
124
123
VALUATION (Dollar amounts in thousands)
Percent change
Sept. 1964
9 months,
Area
ARIZONA
Tucson ••.• ....
LOUISIANA
Shreveport ••••
TEXAS
Abilene •••••.•
~ Area
Total Elevent
. .
Co
h DIStrict .••• '" .•
Do;fa~S Christi ••• •...•...•••••
~~~~~\.:.:.::::::::::::::::: :
Shrc\'e" onlo • ..••..••..•.••••
Waco Port, La .•.•. •..•••..•.
Othor 'titi~s'
................ .
-------.:.:: ................ .
-9
-19
-6
-12
-8
-
12
13
11
10
September
1963
15
13
14
16
18
16
2
13
18
-26
12
0
-42
- 17
-66
22
- 13
139
-57
-9
- 15
32
311
-15
297
-2
21
-54
124
-2
-53
-52
54
4
253
110
9
24
6
47 1
-10
636
44
-31
-42
43
92
-58
-20
5
-10
29
16
- 12
-3
9
- 17
-4
48
-4
-27
44
11
-5
-8
21
-2
$ 27,890
387
3,064
1,552
18,613
7
9,433
Son Antonio .. .
Woco ••. ... ..
1964 from
1963
$ 1,650
Wichita Falls • .
9
15
11
Galveston .• . . .
Houston ..•. ..
Lubbock •..•.•
Midland .•.•.•
Odessa •• . ••••
Port Arthur •••.
Sept.
1963
6,764
Total-19 cities ••
11
5
10
Dallas . •••.•..
EI Paso ••. •...
Fort Worth .•••
Aug.
1964
657
4
9 months,
1964 from
1963
9 mos.
Sept.
1964
11
10
(Percentage change in rotoil va lue)
~================================
September 1964 from
Amarillo ..... .
Austin .. ..... .
Beaumont •... .
Corpus Christ i ..
Se pt.
1964
9 mos.
77
235
362
247
336
1,850
389
754
116
1,827
187
88
130
155
1,193
336
107
DEPARTMENT STORE SALES
August
1964
from
NUMBER
118
1964
1964
824
2,233
3,117
2,276
3,094
18,97 4
3,871
6,460
1,234
17,844
1,71 5
870
940
1,407
10,772
2,175
1,166
58 1
4,110
9,286
2,477
2,340
12,753
2,936
4, 160
1,946
23,062
13,038
904
524
252
7,931
1,552
905
9,B02
35,466
59,204
13,841
23, 188
161,184
33,905
42,707
9,109
250,023
47,775
9,53 1
4,6B8
5,464
50,440
12,735
10,462
8B,BOO
$9 1,959
$826,027
3
VALUE OF CONSTRUCTION CONTRACTS
MARKETED PRODUCTION OF NATURAL GAS
==============================
Seasona ll y adjusted inde~
(In millions of doliors)
(1957-59 = 100)
In millions of cubic feet
-------Second
First
Second
January·Sept e mb e r
Area and type
FIVE SOUTHWESTERN
STATES' . . .... .. .. . .....
Resi d ential building ... . . ..
Nonresidential building ....
Nonbuilding construction .. .
UNITED STATES ............
Residential building •.•••..
Nonresidential building ...•
Nonbuilding construction ...
September
August
Se ptember
1964p
1964
1963
372
171
116
85
3,760
1,679
1,275
807
359
163
102
94
3,762
1,717
1,228
817
390
185
92
112
3,707
1,789
1,154
764
1964p
Second
quart er
First
quarter
Second
quarter
Area
1964
1964
1963
1964
1964
1963
Loui siana ....• . ....
New M exico ........
Te xa s.. .. .........
976,700
211,100
306,000
1,559,363
1,122,900
248,700
313,000
1,67 1,1 00
898,000
186,800
222,900
1,490,300
194
12 3
179
120
18 1
126
170
11 7
179
109
130
114
Total ............
3,053,163
3,355,700
2,798,000
142
138
130
1963
3,760
1,690
1,061
1,008
36,136
16,144
11,607
8,386
3,643
1,675
1,023
944
34,181
15,662
10,929
7,590
Oklahoma ..• . .....
quarter quarter quarter
-
SOURCES , U. S. Bur.ou of Min .s .
Fed eral Rese rv e Bank of Dalla s.
1
Arizona, Louis iana, New Mexico, Oklahoma, and Texas.
p -
Preliminary.
NOTE. - Details may not odd to totals because of rounding.
SOURCE , F. W. Dodge Corporation.
NATIONAL PETROLEUM ACTIVITY INDICATORS
(Seasonally adjusted ind.xes, 1957-59
Indicotor
(In thousands of barrels)
Sept.
1964p
Aug.
1964p
Sept.
1963
Aug.
1964
Sept.
1963
CRUDE OIL RUNS TO REFINERY
STILLS (Doily av.rage) . ..... • .... ...•
DEMAND (Daily av.rag.)
Gasoline • .. • . . . .. . ........ ... .. . . . .
Kerosene ...... . . . ...... . ...... • .. .
Distillate fu.1 oil .... .... . ........... .
ELEVENTH DISTRICT. .......
Texas ... ....... . .... .. .
Gulf Coast ••..•..• •. ••
West Texas ........ . ..
East Texas (proper) • ...•
Panhandle ••.•..••.•••
Rest of State . . . . •....•
Southeastern New Mexico . .
Northern louisiana ....... .
OUTSIDE ELEVENTH DISTRICT
UNITED STATES ............
p -
3,175.4
2,713.0
522.3
1,182.8
108.8
102.4
796.7
280.6
181.7
4,554.2
7,729.6
3,128.6
2,665.4
509.4
1,165.6
104.4
100.3
785.8
284.4
178.8
4,531.6
7,660.2
3, 111.5
2,684 .3
515.4
1,205.2
120.8
104.7
738.2
277.6
149.6
4,395.4
7,506.9
S. pt.
1964p
Aug.
1964p
Sept.
1963
116
113
112
116
173
118
95
11 4
115
165
118
93
113
11 0
185
130
97
115
111
115
111
73
106
111
115
110
79
107
109
112
108
85
106
----~~--~~----------------~--------~--------
Percent c~ange from
Area
= 100)
============================================================~
DAILY AVERAGE PRODUCTION OF CRUDE OIL
1.5
1.8
2.5
1.5
4.2
2.1
1.4
-1.3
1.6
.5
.9
2.1
1.1
1.3
-1.9
-9.9
-2.2
7.9
1.1
21.5
3.6
3.0
Residual fuel oil ... . .......... . ..... .
Four reflned products .. .. ......... .
STOCKS (End of month)
Gasoline ....... ..... .... . .. . ...... .
Kerosene . ...... . . . ...... ....... .. .
Distillate fu el oil .. . .. . .. . ........... .
Residual fu . 1 oil •••....••...• . ..•...•
Four reflned products .. .. .. ..... . . .
------------------------------------------p Pre liminary .
SOURCES, Ame rican Petrol eum Institut •.
U . S. Bureau of Min es.
Federal Rese rvo Bank of Dol·la s.
Preliminary.
SOURCES, American Petroleum Institute.
U. S. Bureau of Mines.
~ederal Reserve Bank of Dalias.
CROP PRODUCTION
(I n thousands of bush.ls)
=
COTTON PRODUCTION
(In thousands of bales -
1964,
500 pounds gross weight)
Oct. 1
1963
1962
1964
as percent of
1963
High Plains . _•.•••.••
High Plains •....• ••. •
Plains ••.. • •..••. . ..
Plains .....•..••.. ••
10-N - South T.xas Plains •••••....•.
10-5 - Lower Rio Grande Valley. _• • •.
580
1,420
265
245
15
410
25
65
255
20
140
165
240
50
330
505
1,590
292
330
19
510
39
71
257
37
124
100
225
49
269
584
1,730
287
320
17
444
29
63
251
35
123
157
212
61
413
115
89
9t
74
79
80
64
92
99
54
113
165
107
102
123
State ..........................
4,225
4,417
4,726
96
1964,
indicated
l-N
l-S
2-N
2-S
3
4
-
Northern
Southern
R.d B.d
Re d Bed
- Western Cross Timbers ........
- Black and Grand Prairies • .... .
S· N - East Texas Timbered Plains ..••
S·S - East Texas Timbered Plains .. .•
6 - Trans·Pecos •.•............. •
7 - Edwards Plateau •••...... .. ..
B·N - Southern Texas Prairie s . .•....
8·5 - South ern Texas Prairies ....•. .
9 - Coastal Prairies ..•• ..........
SOURCE , U. S. Deportment of Agriculture.
4
1964,
Average
estimated
Crop
Oct. 1
1963
1958- 62
Oct. 1
1963
Cotton :!: .........
Corn ...........
Winter wheat . • •.
Oats ...........
4,225
22,912
61,848
24,000
3,780
525
18,737
218,160
1,276
2,492
194,700
2,574
1,0 12
25,000
4,417
24, 164
40,618
13,674
3,780
338
18,394
245,3 10
635
2,198
195,640
2,657
980
56,000
4,516
34,543
66,334
27,387
8,161
321
13,194
239,690
742
2,217
219,128
2,543
1,232
24,600
6,230
33,258
160,844
33,088
27,656
1,500
35,501
249,868
1,276
7,294
398,650
5,286
4,696
76,500
6,544
35,898
122,50 1
19,918
22,229
1,097
35,285
287,749
635
6,693
383,650
5,816
4,939
127,000
estimate d
Area
-
FIVE SOUTHWESTERN STATES'
TEXAS
Texas Crap Reporting Districts
Barl.y ••••..•..
Ry .............
Rlce 3 ••••• ••• •• •
Sorghum grain •..
Flaxseed .•.....
Hay' ...........
Pea nutsli • • ••• •
Iris h potatoes G •
••
••
~:c~e~s~~t.a:~~~~.
1
:
Arizona, louisi ana, New Mexico, Oklahoma , and Texas .
" In thou sands of bales.
a In thou sands
" In thou sands
r; In thousands
o In thousands
of
of
of
of
bag s containing 100 pounds each.
ton s.
pound s.
hundredweight.
SOURCE , U. S. Departm.nt of Agriculture.
--
~95~~~2
6,456
51,482
176,03 5
43,36~
33,82
1 140
26:327
274,693
742
6,66 6
378,2 41
5489
5'35 0
65:3 40
----
@FedFRASER