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BUSINESS REVIEW OCTOBER 1957 Vol. 42, No. 10 THE ECONOMIC IMPACT OF REDUCED OIL PRODUCTION Although the southwestern economy is notable for a number of major products and the list has grown steadily larger as industrialization has developed, oil and oil products are virtually synonymous with the southwest area. Since 1950, the primary oil-producing states of the Southwest - Louisiana, New Mexico, Oklahoma, and Texas - have steadily provided 58 to 60 percent of domestic well completions, 63 to 66 percent of total United States crude oil production, and 70 to 71 percent of total domestic crude oil reserves. The principal upward or downward movements in the industry are accomplished mainly by fluctuations in the Southwest, since its oil production is almost a balance wheel for the entire United States industry. The expansion and contraction of crude oil output have been, at times, the major factor occasioning a similar movement in the whole southwest economy. Indeed, despite the more rapid growth of other industries, oil production and refining still account for more than 54 percent of the total value added by manufacturing and mining in the Southwest and, with natural gas, provide nearly 31 percent of manufacturing and mining employment. Consequently, a major change in the oil industry is of considerable significance to the economy of the southwest area. The magnitude of the recent changes in crude oil production and the present low level of oil allow abies require a close inspection of the current situation to determine, as nearly as possible, the impact of these changes upon both the oil industry and the entire economy of the Southwest. FEDERAL RESERVE DALLAS, BANK OF DALLAS TEXAS This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) Several times in recent years, the oil industry of the Nation and the Southwest has faced a problem of excess supply. In fact, since the Middle East fields were opened and the United States became a net importer of crude oil, imports have risen at a faster rate than has domestic production. Because the four southwestern oil-producing states account for nearly twothirds of domestic output and are among the few primary producing states with conservation laws enforced by state commissions, the effects of steady inroads by foreign oil have been most evident in this area, especially during periods of oversupply-when allowables were reduced but imports, under no restriction, were actually increased. During the past 12 months, wide fluctuations in oil production were particularly noticeable. As in some former years, the unpredictable weather played a major role, but, unlike other years, movements were accentuated by the rise and fall of foreign demand for United States oil. The principal difference of this past year was the influence of the Suez Canal dispute. When the canal was closed and pipelines of the Iraq Petroleum Company were dynamited, European oil supplies from the Middle East were reduced substantially. A daily deficiency of nearly 1 million barrels was anticipated in meeting even the restricted European demand. Demand for crude oil and refined products expanded almost 32 percent between September 1956 and January 1957, and crude oil prices increased about 9 percent in the latter month. The usual seasonal demand, coupled with the extraordinary European demand, pushed total requirements to 11,404,000 barrels per day in January 1957. At the first sign of a deficiency in European requirements, United States producers immediately stepped in to fill this need, and crude oil output in the primary producing areas began to expand. The four states of the Southwest raised allowables by more than 800,000 barrels per day, and daily average production in this area spurted from 4,505,200 barrels in October 1956 to 5,269,700 barrels in March 1957. These states had unused productive capacity of nearly 1.7 million barrels per day in October 1956, although a substantial portion of this unused productive capacity was not readily obtainable. Some wells were not connected to gathering lines, and trunk pipelines to the Gulf Coast were being utilized to a high percentage of their total carrying capacity. Nevertheless, the October-March increase of 764,000 barrels I~USlNESS REVIEW PETROLEUM DEMAND AND CRUDE OIL PRODUCTION DA ILY AVE RAGE MI LL ION5 0 F BARRELS MILL IONS OF BARREL S 12 12 ;i1'-t- --:::', -----11 o ~~~-----~~ -.;~~~- - -~ -ON - ,~ --- CRUDE PROD UCTI 6r - - - - - - - - - UNITED STATES 4r - - - - - - - -' -- CRUDE PRODUCTION SOUTHWEST 6 4 2r----------~-----~ ~~F~M~A~M<TJ-J~A-+S'O N-*D-J~~M~A~ J ~J~: ~ M-+ 1956 SOURCES : u 19 57 s. o ",,.ou 0' Min... Am.rl con Plt rol'loIm Inl lllul • . per day in southwest production more than accounted for the 5-month rise in total domestic production. In the same period, crude stocks were reduced 31,649,000 barrels, and imports were cut back 77,000 barrels a day. Despite problems in pipeline transport from interior fields to the Gulf Coast and a threatened shortage of tanker space, domestic producers did an admirable job in meeting the deficiency in Europe's daily requirements. Yet, as may always be the case, changes in demand -particularly downward movements-are followed only with reluctance by the producing areas. Partly because of mild weather, which reduced the demand for heating oils in the United States and abroad, and partly because Europe's restrictions on the use of petroleum products lowered her basic deficiency, total demand moved down sharply after January. By Marcb, demand was down 12 percent from its peak in J anuary and was only 5 percent above the total in Marcb 1956. Total supply, though, reached its peak in Marcb at a level 5 percent above a year earlier and 3 percent higher than in January. Despite the January-March decline in demand and the imbalanced situation which was developing, the wor~t was yet to come. The Suez Canal reopened in earlY Apnl, and European demand was satisfied through tbe previous marketing channels. Exports of crude oil and refined products declined from a peak of 1,040,0 00 barrels per day in March to a level of approximatelY 400,000 barrels daily in August. Domestic demand continued downward too, so that by August, total in- ternal requirements were 26 percent below the January record and only 1 percent above a year earlier. A rash of inclement weather during the spring held down gasoline demand, while demand for other products declined more than seasonally. Recognizing this change in the demand for crude oil and refined products the four southwestern states slowly reduced allowabies, curtailing production in this area by nearly 17 percent between March and August, or 95 percent of the total reduction in domestic output. However, since imports actually ~xpanded from a daily average of 1,464,000 barrel~ Ill. March to 1,603 ,000 barrels in August, the decline III total Supply was much smaller. Although the margin between demand and supply narrowed, crude stocks advanced from a low of 254,911 000 barrels on March 31 to 284,223,000 barrels on August 31 or approximately 4 million barrels above the level ~f August 31, 1956. In addition, stocks of residual and distillate fuel oils and kerosene at the end of August were well above year-earlier totals. Only gasoline stocks were below the comparable level a year ago. Southwest crude oil production in August was at the low level of 4,394,000 barrels per day-or 6.6 percent below August 1956-and. U~ited States prodUction was down 5.5 percent, while Imports were up 14 percent. The Southwest supplie~ 65 percent ~f United States production in August thIS year, but thCIe Were some minor shifts within the area. The Texas portion of the southwest total declined from 65.9 percent in August 1956 to 63 .5 percent in ~ug~st 1957. Louisiana Oklahoma and New MexIco lllcreased their prop~rtion of the ~outhwest total, with Louisiana's share moving from 16.7 percent to 18.2 percent. Measured in a somewhat different fashion , there have been some substantial internal shifts in oil production in the Southwest. Over the period October 1956-August 1957, encompassing the rise and fall of production due to the seasonal and European deI?and, OUtput in the separate states reflected meanIllgful Changes. Texas production in August was abo~t 133,000 barrels per day, or 4.5 percent lower than m October 1956. Oklahoma output was down 590 barrels daily in this period, or 1.1 percent. However: Louisiana production increased 15,329 barrels ~eI day, or 2 percent; and New Mexico ended the penod With a daily gain of 6,697 barrels, or 2.8 percent ab~ve the level of October 1956. In other words, the declme in crude oil output in the Southwest over this 10month period was accomplished almost entirely at the expense of Texas production. Moreover, Texas allow abies for October have been reduced 228,075 barrels a day by cutting the producing schedule to 12 days. The Texas allowable of 2,964,062 barrels daily is the lowest in 2 years. Thus, at the close of summer, the southwest oil industry still faces a serious oversupply situation. Both allowables and production have been cut back, but in view of the gain in stocks, the output reductions have been insufficient and characteristically too slow. The results of this situation have been quite evident in the market prices of most petroleum products. While the crude oil price increase in January has not been modified substantially, there have been a number of reductions in residual and distillate prices, and gasoline price wars have been common. Cost pricing has given way to supply pricing in this period, despite the steady rise in drilling and production expenses. Enlarged storage space for petroleum products has become necessary, adding to the total costs of marketing. Effects of Reduced Production The principal problems created by oversupply have centered upon the effects of reduced crude oil production. One of the foremost of these problems has been an equitable distribution of the remaining output. Between states, the distribution has been decided by commission allowables. The rising importance of Louisiana in total wells and reserves has been recognized in its increased share of the southwest output. However, within the various states, differentials exist which are difficult to reconcile. In areas dependent upon one producer, the relative position of that firm appears to govern output. In other areas, the specific type of crude oil seems to be the governing factor. A few major companies, unable to store or market their share of southwest production, have instituted pipeline prorationing. Purchases have been limited to a percentage of the well allow ables, which, when aggregated, will be in approximate balance with the nominations of the company. Also complicating the equitable distribution of output has been the problem of exempt wells. Nearly onethird of the total output of Texas comes from exempt wells. While justifications for exemption may have been valid when all wells were operating at least 50 BUS I NESS RE V IE~1 percent of the time, such reasons may be less compelling with a 12-day allowable. In fact, the stimulation to drilling shallow wells for exempt production may not be justified when expenses on deeper wells are not being met. New discovery allowables will probably need a close review to place them in proper relationship to allow abies on existing wells. A reappraisal of exemptions granted secondary recovery projects may also be necessary. As intimated above, another serious result of the lowered output has been its effect on drilling. With 12day allowables in Texas, financing must be scheduled for a longer pay-out period. Thus, profit margins have been reduced, perhaps contributing to the 9-percent decline in drilling. The stretch-out in financing also applies to existing contracts and may affect repayment schedules, since such schedules were based mainly upon 15-day allowables. Another financial problem stemming from the decline in production has been the lower rate of utilization of existing capacity. Fixed costs incurred when drilling, laying pipelines, or building pumping stations must be paid whether the facilities are used or unused. With the rather large number of shut-in wells and the reduced utilization of the remaining ones, it has become more difficult not only to maintain profit margins but, in some instances, to cover fixed costs. Similarly, some refining capacity has been idled, although not to the extent of the decline in crude production. Beyond these primary effects have been some significant secondary problems generated by the decline in oil production. Suppliers of oil field equipment and materials report a substantial decline in business. Similarly, plant and equipment expenditures for the oil industry have slowed markedly. Drilling has been reduced by 9 percent from year-earlier levels, despite the higher price for crude oil. Of course, a part of this decline may be a result of difficulties in obtaining the needed capital, but, as mentioned above, some of the financing problem stems from the longer pay-out period. Many of the southwestern states derive a large portion of their revenue from taxes on oil production. The decline in production, therefore, has occasioned a similar decline in tax receipts. In Texas, Louisiana, Oklahoma, and New Mexico, state-owned lands provide large amounts of royalties from gas and oil production. In fact, these southwest states accounted for I:USINESS REVIEW almost 47 percent of total earnings on property and investments in all 48 states in 1956. The earnings on property and investments in the Southwest in 1956 provided more than 10 percent of total revenue for the four states. Clearly, any major decline in oil production adversely affects both tax receipts and earnings. By the same token, individuals and corporations drawing income from leases, rents, or royalties probably have experienced some decline in their returns. Certainly, the profits of businesses tied to oil production either directly or indirectly have been reduced, and with large overhead costs, some concerns may be encountering difficulties. In various ways, other effects of the reduction in oil output undoubtedly extend into virtually all major segments of the southwest economy. The construction, fabricated metals, and machinery industries are affected by declines in plant and equipment expenditures, and suppliers of all types of regularly consumed materials are feeling the effects of reduced buying. Tanker rates have fallen markedly from their peak during the period of heavy exports. To some extent, retail merchants may have been affected by the reduced overtime payments to workers and by the decline in royalties. Aggregate Economic Changes In reviewing the economic impact of declining crude oil production in the Southwest, it is easy to overstate these effects to a point greatly out of proportion with their relative importance in the entire southwest economy. The significance of the decline should be neither minimized nor magnified ; consequently, it is important to appraise the changes and trends in the major ecOnomic measurements of this area. Although definitive data are unavailable on indUStrial production in the Southwest, a study of manhour trends over the 1956-57 period indicates a continued growth in output to a new peak in August 1957. Industrial plants in this area-particularly in the primary metals, chemicals, and transportation equipment industries-generally operate at higher rates of capacity than the average for the Nation because many of the plants are relatively new and, thus, have the latest equipment and the lowest costs per unit. The constrUCtion of new plants and expansion of existing oneS, coupled with the tendency toward high operating rates, industries. Perhaps a reduction in plant and equipment expenditures would be noticeable if such data were available, and indications from nonresidential buildConstruction activity in the four-state area during ing awards seem to point in that direction. Whatever the first 7 months of 1957, as measured by the value declines are occurring because of the cutback in crude of construction contract awards, was 1 percent above oil production are apparently being offset by increases the comparable period in 1956: Mos~ ~f the strength in other lines of activity. With industrial production, came from awards for residential bmldIllg. All other construction, employment, income, and retail trade all awards, down 2 percent on a cumulative basis, include advancing, a realistic appraisal merely indicates that nonresidential building, which was 18 percent less than the gains would have been larger if the petroleum inin the January-July period last year. dustry had not reduced production. As previously indicated, petroleum mining and reNevertheless, in local areas where oil production fining and natural gas concerns account. f~r nearly 31 is the dominant source of income, economic activity percent of total manufacturing and mIllIllg employ- is declining. To the individual leaseholder or royalty 111ent in the four states. In July 1957 the petroleum and owner in these areas, it is small comfort to know that natural gas industry employed 307,347 workers, or the Southwest as a whole is prospering. With shut-in 7. 6 percent of total nonagricultural employment. wells, pipeline prorationing, and steadily lower allowCrude oil and natural gas mining employment totaled ables, the oil-dominated areas are indeed hard-hit. 232 900 in Ju1y reflecting a gain of 1.3 percent over " . Most of the heavily populated areas and some of a year earlier. Total manufactunng empI 0 yment showed a year-to-year gain of 2.0 percent, and non- the smaller areas in the Southwest have achieved a measurable degree of economic diversification, with agricultural employment rose 2.4 percent. agriCUlture, oil, manufacturing, and Government inAverage weekly hours of all Texas manufa.cturing stallations providing basic sources of income. In the workers showed a minor decline from 41.5 III July broad scope of the entire Southwest, the basic sources 1956 to 41.4 in July 1957. Workers in crud~ petro- of income are much better balanced than they were a leum mining firms averaged 43.5 hours thIS July, decade ago, and the inherent growth in the region against 44.0 hours a year earlier. Average weekly enables it to withstand declines in individual segments, earnings for Texas crude petroleum workers advanced as was evident with agriculture in 1956 and now with from $105.80 in July 1956 to $109.62 a ye~r later. petroleum in 1957. The gains in other segments in This gain was moderately below the $5 .18 Illcre~se 1957, particularly agriculture, have submerged the in average weekly earnings for all manufactun~g economic adjustments in the oil industry. Workers but exceeded the increases for employees III While there are possibilities of near-term improveretail and wholesale trade. ment in the oversupply and declining production probRetail sales in the Southwest, though measured ~m lems, these are dependent upon two major indetermiperfectly by existing indexes, apparently are :eIllf- nate factors-weather and imports. A cold winter maintained at a level slightly above a year ago. ara would cause an extraseasonal increase in the demand leling retail sales trends in the Nation, the So~thwest for heating oils and eventually encourage a rise in proconsumer has bought fewer appliances, but III four duction. Similarly, if the new import restrictions beleading cities in Texas automobile sales are 9 percent come effective, domestic production cou1d move up to above a year earlier. 'Department store sales for the replace the amount of the cutback. However, should first 8 months of 1957 in the Eleventh Federal Reserve both of these possibilities fail to materialize, crude oil . District were 4 percent higher than III th e comparable production may remain near the reduced level scheduled for October. Some minor increase could develop period of 1956. to take care of that portion of seasonal demands which Summary and Outlo ok is not met by the higher level of imports. have more than offset any declines or cutbacks in production, including the reduction in crude oil output. Surveying these over-all measurements o~ ec?nomic Conditions it is difficult to discern any declIne III to~l activity. I~ fact, the southwest economy see~s to . e advancing, despite the weakness in one of ItS major PHILIP E . COLDWELL Director of Research BUS INE S S REVIE:I REV lEW BUSINESS BUSINESS, AGRICULTURAL, AND FINANCIAL CONDITIONS Employment levels in August reflected largely seasonal trends, and the nearly 4,310,000 nonfarm employment total in the five Eleventh District states was second only to the record of last December. The total value of construction contracts awarded in the southwestern states during July was below both the June and year-earlier levels, with the cement strike a factor in the decline. Residential awards, however, were up sharply from both the previous month and July 1956. A series of cool fronts during the past month resulted in beneficial precipitation over a large part of the District. Production prospects for most crops continue to be more favorable than those of last year. Output of peanuts is more than double last year's outturn, the grain sorghum crop is two-thirds larger, and cotton production is estimated at 6 percent above the 1956 output. Retail sales of department stores in the Eleventh District rose substantially in August, being 6 percent above those in August 1956. The 8-percent gain over July was less than the usual seasonal amount because of the counterseasonal gain in the earlier month. Reflecting these developments, the adjusted index of department store sales-which represents the average business day, adjusted for seasonal variations, related to the 1947-49 average-dropped from 171 percent in July to 163 percent in August and compares with 155 percent in August 1956. The breakdown of department store sales by departments, furnished by a special panel of cooperating stores in leading cities of the District, shows that August demand related to a year ago was about the same as in July in the major nondurables departments. The principal changes within those departments reflected I :USINESS REVIEW District crude oil production declined slightly in August and the first half of September, while the demand for petroleum products failed to show any gain over a year ago. Imports, however, reached a record volume in early September. A major cutback in District production is expected during October, since Texas allowables have been cut 228,075 barrels per day. Commercial and industrial loans rose $27.2 million at District weekly reporting member banks during the 4-week period ended September 18. In August, daily average free reserves of District member banks declined $1 million, with the reserve city banks accounting for most of the decrease. The dollar volume of retail sales of department stores in the District in August was 6 percent above the same month last year and 8 percent above July. On a seasonally adjusted basis, however, August sales declined 5 percent from July, mainly reflecting the cutback in demand for durable goods. the shifts in demand to the typically back-to-school items. On the other hand, the demand for durable goods declined moderately from a year ago. August sales of small wares-including notions, toilet articles, and jewelry - were 9 percent above August last year. Sales of women's and misses' readyto-wear accessories and apparel rose 4 percent and 7 percent, respectively. Demand for men's clothing, INDEXES OF DEPARTMENT STORE SALES AND STOCKS Eleventh Federal Reserve District (1947·49 = 100) SALES (Dally average) Date Unadjusted Seasonally adjusted 1956: August ••••.••• 1957: June .•• ••• •.• July • • •• ..•••. August ••••••.• 144r 146 145 152 155r 161 171 163 r- Re . . ised. p-Prellmlnary. STOCKS (End of month) Unadjusted Seasonally adjusted 161r 157 162 170p 162r 169 171 172p DEPARTMENT STORE SALES AND STOCKS SALES AT FURNITURE STORES AND HOUSEHOLD APPLIANCE STORES (Pe rce ntage chang o In re tail valu e l (Pe rcentage cha nge in rotoil valuo) Lin e of trad e by area FURNITURE STORES Total El eve nth District. • .• •... , .•. , Amarillo . .••. ... .•... . ... .. •.• · . ~~b¥~lL~ ~::: ::::: ::~~:::::: Shreve port, La • .. .... . .... .• ....• Wichita Falls .. ... ... . . ••....•• .• Othe r cities •. . .. . ..... .. .•. ..... HOUSEHOLD APPLIANCE STORES Total El eventh Di strict. .. •... . .• .. • Dallas ••• • • • .••• •••• ..••• • •• ••• • Jul y 1957 STOCKS (End of month) NET SALES August 1957 from August 1956 8 mo s. 1957 comp o with 8 inos. 1956 Aug. 1957 from Aug . 1957 from 8 mo s. 1957 0 -9 5 -10 - 5 - 5 - 6 -1 -9 21 13 6 11 -7 -2 Aug . comp o with Area -1 -40 - 4 - 18 - 1 Jul y 1957 1956 8 mo s. 1956 Total El eventh District. • . • . . • • • • . . • • Corpus Christi.. .. . . . . . . . . • . . . . . .. . Dallas.... ................. . ..... EI Paso. ........ . .. . ..... . .... . .. Fort Worth.. . . . . . . . . . . . . . • . . . • . . . 8 19 11 25 7 6 7 5 5 6 3 July 1957 Aug. 1956 5 7 7 10 20 4 2 4 0 -12 - 4 3 9 -5 5 o 8 -10 3 ~~~s~~~~i~: ::::: : : :: ::: :: :::: : : : 12 0 ~ ::ith~~'citi~;:: :::::::::::::::::::: 1 ~ Shreve port, La .. • . . . . . . . • • . . . . . . • • 1 4 2 1 4 5 11 4 1 1 -6 - 2 o 4 2 5 6 9 3 5 6 21 1 - 2 -6 1 -11 which showed a sales gain of 11 percent, remained strong compared with a year earlier. , Sales of major household appliances declined 27 percent from August 1956, in reaction to the large gains in July. The greatest losses were registered in sales of air-conditioning units, down 46 percent; laundry equipment, off 27 percent; and mechanical refrigerators, down 17 percent. Charge accounts outstanding at the end of August Were 2 percent higher than a year earlier, while instalment and deferred-payment plans declined 2 percent. !he average collection time for regular charge accounts In August was 67 days, representing no important change from a year ago. The average repayment period for instalment accounts, which include revolving credit plans, was 12 months, compared with 13 months last year. Department store inventories rose slightly more than seasonally during August and at the end of the month Were 7 percent above a year earlier and 5 percent above the end of July. The seasonally adjusted index of stocks at the close of August was 172 percent of the 1947-49 average, compared with 171 percent for July and 162 percent for August 1956. Net receipts of merchandise during August were 5 percent more than in the same month in 1956. Orders outstanding at the end of the month were down 2 percent from a year ago. s~owed increases of tlv~ly. For the four 5 percent and 4 percent, respecmarkets combined, the 8-month gam over a year ago amounted to 9 percent. A series of cool fronts during the past month triggered showers over a wide area of the District. The precipitation was generally beneficial to growing crops and for impr~ving soil tilth. The lower temperatures accompanymg the fronts slowed development of lateplanted. crop.s. The rainfall, which fell in cloudburst prop?rtion~ m some areas, was quite effective since relauvely lIttle runoff occurred in most sections. However, little or no moisture fell in critically dry parts of southern, ~estern Plateau, and Trans-Pecos areas of Texas and m southeastern New Mexico. Over the easte~n half of the District, preparation of land for fall seedmg of small grains is well advanced and in the High Plains area of Texas and New Mexico' dril~ing is. active. In part of the latter area, additionai mOIsture IS nee~e~ to ~pr~ut grains planted in dry soils. Sorghum combmmg IS vrrtually complete in northern Texas, and harvest is increasing as far westward as the Low Rolling Plains. In much of the northern half of Texas, harvesting of sorghums for forage and silage is un~er way. Early sorghums are ripening in the High Plams area. .A .bumper c.rop of sorghums is in prospect in the New car sales in Texas' four largest markets pre!?IStriCt states if the. present favorable prospects consented a mixed pattern in August; in the aggregate, 2 tmue. Sorghum gram production is indicated, as of percent fewer cars were sold than in July. Compared September 1, at 226,479,000 bushels, or about twowith August last year, however, sales were up 4 percent. thirds above the output in 1956. Recent rains promoted In the first 8 months of 1957, the Dallas metropolitan the continued favorable development of peanuts in the ~rea led the way in percentage gains over 1956 with an Cross. Timber~ a~d northern Texas areas. The peanut Increase of 19 percent in new car sales. Fort Worth crop m the DIstnct states is estimated to be more than gained 7 percent, while San Antonio and Houston BUSINESS REVIE~ I ( CRO P PRODUCTIO N double last year's outturn. Rice harvest is active in Louisiana and Texas, with high yields in prospect. Production is placed at 20,942,000 bags, or 8 percent below the past year's excellent crop. The cooler temperatures during the early part of September slowed development of the cotton crop. Rains and lower temperatures checked premature opening of bolls and excessive shedding of fruit in central and northern Blacklands sections, but in irrigated western regions, the cooler weather retarded development of I the crop. Cotton prospects remain quite favorable, and the 1957 crop in the District states is estimated at 5,920,000 bales, which is 6 percent above last year's output. Increases in indicated production for Oklahoma and Texas of 21 percent and 12 percent, respectively, more than offset declines of 24 percent in Louisiana and 5 percent in New Mexico. Fall and early winter vegetables in irrigated south Texas areas are making good progress, and planting of additional acreages of winter vegetables is under way in the Lower Valley. In nonirrigated sections of south Texas, planting has been curtailed because of dry soils. Vegetable harvesting is limited primarily to carrots in the High Plains and sweet potatoes in east Texas. Texos an d Five So uthwestern States (In thou sands of bushels). TEXAS E stimated Sept. I , 1957 Crop Cotton 2 •••••••• • Corn •.. . . ••• •. . Winte r wh e at .. . . Oots . . ...... . .. Barley .. .. ..... Rye ....... ... .. Rice! ..... . .. '" Sorghum grain . . . Fla xseed ... .... Ha y· .... .. . . ... Peanuts lS • • • • • • • • Irish potato es G• •• .: ~::oe~sr.~t~.t~~~e 1 2 S ,f, t; G 1956 4,050 39,169 35,0 14 37,148 5,090 304 10,614 199,491 119 2,063 2 12,6 25 1,695 1,020 37,500 3,615 27,465 26,388 19, 170 2,320 136 11 ,000 124,202 126 1,29 1 87,500 1,378 627 27,500 FIVE SOUTHWESTERN STATES' 1946- 55 E stima te d Sept. I , 1957 1956 1946-55 3,742 43,882 47,339 25,473 1,906 237 12,491 9 1,020 870 1,728 244,274 ' 1,515 ' 1,471 31,140 5,920 61 ,653 8 1, 14 1 5 8,418 23,558 1,294 20,942 226,479 157 5,575 307,225 4,235 5,613 78,250 5,587 51,995 96,908 36,527 17, 146 802 22,700 138,289 148 4,284 145,450 3,311 5,841 52,100 5,595 76, 193 123,756 42,442 11 ,311 794 24,566 108,062 1,22 1 5,089 362,045 ' 3,439 ' 6,592 68,549 Averag e Average Ari zona. Louis iana, Ne w Mex ico, Oklahoma, and Te xas. In thousand s of boles. In thousand s of bags containing 100 pounds each. In thousand s of ton s. In thousand s of pounds. In thousands of hundre dweight. , Averag e, 1949-55. SOURCE, United States Depa rtment of Agriculture, Cash receipts from farm marketings in the District states during the first 6 months of 1957 totaled $1,178,121,000, reflecting a I-percent decline froro the corresponding period last year. A 7 -percent de~rease in .crop re~eipts more than offset a 3-percent 10crease 10 receIpts from livestock and livestock The generally favorable small grain and fall pasture products. prospects were boosted further as a result of the early In the 4 weeks ended September September rains. In part of the northern Plateau and 18 , weekly reporting member Cross Timbers areas of Texas, some volunteer small banks in the Eleventh District grains are up to a stand, and some acreages planted to gained $12.3 million in deposits, oats and barley are making good development. Forage stepped up their total borrowprospects are poor in western, southwestern, and exings, liquidated $134.7 million of investments, and treme southern counties of Texas and in southeastern added $16 million to gross loans. In the comparable New Mexico. In these areas, grass supplies are short, period a year earlier, a much larger increase in deposits and some shrinkage of livestock has occurred. With the was more than offset by additions to cash holdings, as exception of these dry areas, range and livestock conloans and investments were reduced. ditions as of September 1 were improved from the yearCommercial and industrial borrowers contracted for earlier levels. $27,2 million of new credits, while consumers and others included in the residual loan category "all other CASH RECE IPTS FROM FA RM MARKETINGS loans" borrowed $11 .2 million of new funds. Loans to Five Sout hwestern Stotes o nd United Sto tes banks had declined more than 50 percent since August IDollar amo unts In thou sa nds) 21 , with broker and dealer loans reduced by a someJanuary-June what lesser amount; the volume of these credits can Percentag e 1957 1956 change Area vary widely from week to week, in accord with tempo162,99 1 $ 162,501 o Arizona .. • .. .. .. . .. ... ··· · ·· · ···· $ rary shifts in cash positions, 111,597 104,990 -6 Louisiana • . ••••. •.• .....•. .. •• . . . • 63,528 209,023 637,589 68,110 210,300 636,987 -7 Total . .. ... . .. . . . . .... .. .. ... . .. $ 1,178,121 United States . . .. . .. .... .... . . . .. $ 12,504,496 $ 1,189,495 $ 12,406,831 -1 1 New Me xico . . . . . . .. .. .. .... . ... . . Oklahoma . .. .. ... . .. ... · ··· · ···· . Texas . . ... . .. .. .. .... ·· ·· ··· ···· . SO URCE, United States Department of Agriculture. I: US INE S S RE VI EW - 1 o The sizable reduction in investments reflected principally sales of the new bill issue of August 21, payment for which was made by credit to Tax and Loan Account, The banks reduced their bill position by $109.4 roi1- CO NDITION STATISTICS OF WEEKLY REPORTING MEMBER BANKS IN LEAD ING CITIES Eleventh Federal Reserve District (In Ihousands of do ll ars) Sopt. 18, 1957 Item Aug. 21, 1957 Sopt. 19, 1956 ASSETS $ 1,488,207 $1,460,968 $ 1,50 1,306 31,899 22,538 23,282 24,359 28,065 17,903 145,380 147,913 151 ,713 214,259 193,080 191,344 8,540 30,015 14,884 loon s to banks .. . . . .. .. ... .. . . ........ . .. . 578,435 614,938 626,135 All oth er loans... .. .... ... • .. . .. ... .. • .. .. 2,513,468 2,497,517 2,504,178 Gross loans .... .. ... ......... . . ..... . . . 32,803 42 ,774 42,652 Less rese rves and unallocated charge·offs . . Comm f" rcial and Industrial loans ......... ... . . Ag ricultural loons . •• .. ...... •••• • ...•.• ..•• Loans to brok ers and d ealers In securiti es • .. . . . Oth er loan s for purcha sing or carr ying se curi ties . Real -es tote loan s• • . .. . .... •••• .. .. .. . .. . .. Ne t loons .. .. .. ..... . ... . .. . ·· · ········ 2,470,816 2,454,743 2,471,375 U. S. Trea sur y bills ..••. ... . .. . ... ... .•. . • . Oth er securiti es • •.. •. • .. ..... . .......... .• 115,591 112,068 158,099 816,760 278,001 224,965 107,0 11 158, 182 844,525 280,512 37,992 76,943 2 13,02 4 80 1,932 237,606 Total inv estments .. ... .. . .. . , . . . .. .. . ... . Cash it ems in process of coll ection . . .. . ...... . Balanc es with banks in the United Slates.. . ..•. Balances with banks in foreign countri es . .. . . . . Currency and coin . . . . . .. .. .. . . .. . ...... • .. Reserves with Fe deral Reserve Bank •• . . .. • . •.. Oth er a ssets. . . .. .... . .. .. . .. . •. . .. .. . .. . . 1,480,519 490,551 454,297 1,906 48,776 613,383 174,041 1,615, 195 400,389 438,524 1,798 47,055 573,3 19 170,470 1,367,497 436,429 5 18,053 1,347 47,859 567,979 157,924 TOTAL ASSETS . . .. .............. . .. .. 5?34,289 5?01,493 5,568,463 Demand d epo sits Individuals, partn erships, and corporations . . • . United States Government .. .• ....... . ... . Stat es and politica l subdivisions . . .. . . .•. ... Banks in the United State s••• .. . .. . . . . ... . . Bank s in foreign countries .. .. . .. . . . ..... . . C ertiA ed and offlce rs' checks, etc .• • .. . •... . 2,831,982 66,497 162,394 945,355 19,084 85,228 2,776,936 192,065 174,887 879,207 20,8 11 54,581 Tota l demand deposlts . •• . . ....... . .. ·· 4,098,487 4,138,365 Tim e de posits Individuals, partnerships, and corporations• .. . Unit ed States Governm ent . . ........ . ... . . Postal saving s • . . . ... .......... . . . . . . .. . Stotes and political subdivisions ... . .. . ... . . Banks in the U. S. and foreign countries• . . .. . 799,975 12,420 42 1 206,983 6,750 804,963 12,420 421 20 1,925 6,550 720,854 12,229 452 133,550 7, 185 Tolal tim e deposits • . .••. . . •• . •.. . . • . . . 1,026,549 1,026,279 874,270 . . . • . . ......... .. ..... . .... . . . . .. . . , .. . .... . , . . . . .. . .• · · · · · • 5,137,0 89 54,250 89,784 453,166 5,124,766 41,050 84,157 45 1,520 5,012,635 44,400 85, 172 426,256 TOTAL LIABILITIES AND CAPITAL. .• • . . . • 5l34,289 5l0 1,493 In August, average holdings of free reserves by the District's member banks declined about $1 million to $32.8 million, with country banks continuing to hold a comfortable fund of free reserves while reserve city banks maintained their net borrowed reserve position. For all the banks, daily average reserve balances declined somewhat less than reserve requirements. While excess reserves increased $3 .6 million, member bank borrowings rose by a slightly larger amount, causing free reserves to move lower. 2,838,267 91 ,91 1 168, 172 953,837 19,285 66,893 4,1 10,540 and local governments withdrew $12.5 million from their demand balances. The gain of $270,000 in time accounts reflected the nearly offsetting decrease in personal and business accounts and the increase in state and local government balances . Bills p ayable on September 18 were almost $10 million above the yearearlier level. 5,568,463 U. S. Tre a sury ce rtiAcat es of ind ebtedne ss ... .. . U. S. Tr easury notes ... .. .. ..... . . . ... . . .. . U. S. Gove rnment bonds (inc. gld . obligations) . . . MEMBER BANK RESERVE BALANCES AND CHANGES IN RELATED FACTORS Eleventh Federa l Reserve District LIABILITIES AND CAPITAL Tota l deposits ...... . Bills payable, redi scounts, etc . All oth er liabilitie s. .. . .. . . . . Tota l capita l accounts . . .. .•• (In thou sa nds of dollars) CHANGE' 4 weeks end ed Doc. 26, 1956Sept. 18, 1957 Factor Sopt. 18, 1957 Fe deral Reserve cre dit- local .. .... .. . . . . .• . .... . Interdistrict commercia l and flnancial transactions . •. . . Troasury op eration s. . .• • . . . . . .. . . ....... . • . • .... Currency transactions . .• . . ..... .. . . . . .. .•.•.. .. .. Oth er deposits a t Fed eral Reserve Bank •.. . . • . . . .. . Oth er Fed era l Rese rve accounts • . ... .. .. ...•. • .• . . + $20,63 2 + 29,704 1,042 1,322 671 + 1,090 + H 15,574 - 651,380 + 634,178 48,555 + 1,658 + 18,481 + Sept. 18, 1957 Aug . 21 , 1957 - 49,733 -+$ Net cha nge . . . . . . . .... . .. . . . .. .. . ... .. . ••... RESERVE BALANCES .. . . ... • . ...•••.. ....... . ... 1 $ 1,019,972 + $ 67,066 $970,239 Sign of chang e indicates effect on reserve balance s. lion as the Treasury claimed its balances. The weekly reporting institutions sold $27 .8 million of United States Government bonds and acquired $5 .1 million of certificates. Total cash assets increased $147 .8 million, 60 percent of which came from the mid month expansion in cash items in process of collection, with the ?uild-up in reserves accounting for $40.1 million of the Increase in cash. Member bank reserve accounts rose $49.7 million in the 4 weeks ended September 18. A favorable balance on interdistrict commercial and financial transactions supplied $29.7 million of reserves, and local Federal Reserve credit added $20.6 million, with the i~c~ease in member bank discounts and float each provIdmg about half of the total. Treasury operations and currency transactions absorbed $600,000 more of reserves than were supplied by other Federal Reserve deposits and accounts. Demand deposits were up $12.1 million, despite the withdrawal by the United States Government of $125.6 million. Individual and business accounts rose more than $55 million , and correspondent banks re~lenished their balances by an even larger amount. CertIfied and officers' checks increased $30.6 million, while state The Federal Reserve Bank of Dallas owned $812.1 mimon of gold certificates on September 18, which represents an increase of $18 .3 million over August 21 and a $79.0 million gain over the comparable 1956 date. Earning assets of this Bank rose $18 .6 million to a level of $950.3 million, with holdings of United B USIN ESS RE V IE~ I States Governments accounting for $8.4 million of the increase and member bank borrowing the remainder. While Federal Reserve notes in actual circulation increased $7.1 million during the 4 weeks, the year-toyear growth was less than $2 ..6 million. CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS (In thousands of dollars) Item Sept. 18, 1957 Total gold certificate reserves. . • • . • . . • • . . .. $ 812,108 ~iscounts for me mber banks.... . .. . . . . . . . . . Other discounts and advance s. . . . . . . . . . . . . . U. S. Government securities... . . . . .. . . . . .. . . Total earning assets. . . . . . . . ... . . .. . . . .. . . Membe r bank reserv r:. deposits.. .. . ........ Federal Reserve notes in actual circulation.. . .. 38 f 969 312 911,059 950,340 1,019,972 712,636 Aug. 21, 1957 Sept. 19, 1956 $793,838 28,827 260 902,673 931,760 970,239 705,494 $733,171 15,951 o 937,401 953,352 982,823 710,049 The United States Treasury made a three-way cash offering of securities to cover seasonal needs. The 4percent certificate of August 1, 1958, was reopened; and two new securities were issued - a 4-percent note maturing August 15, 1962, but redeemable, at the option of the holder, on February 15, 1960, and a 4percent, 12-year bond maturing October 1, 1969. The bond issue represents the first offering of marketable bonds by the Treasury since July 1955. All of the issues were heavily oversubscribed, with a 10-percent allotment on subscriptions above $50,000 for the bond. The Treasury made allotments of 28 percent for the note and 22 percent for the certificate, but, in both cases, purchasers received full awards for subscriptions of $100,000 or less. Although successive monthly cutbacks in District crude oil production have reduced the margin of supply over demand, an oversupply situation still exists in the petroleum industry. The seriousness of the problem has been deepened by lagging demand and the continuance of large imports. Domestic demand so far in 1957 has failed to show the normal margin of gain over the prior year; during August and the first half of September, demand for the major products held virtually unchanged from the year-earlier level. age for the previous 5-week period but 12 percent above a year earlier. District crude oil production, at 3,144,000 barrels per day in the first half of September, declined slightly from the August level and was 7 percent below a year ago, while production nationally showed a 3-percent reduction from a year earlier. After holding relatively steady in the third quarter at the lower level effective in July, District production is expected to undergo a major cutback in October. In view of the current pipeline prorationing by some major purchasers and the possibility of further purchaser prorationing, the Texas Railroad Commission has adopted an abnormally low 12-day producing schedule for October, which is expected to reduce allowables 228,075 barrels per day. New Mexico allow abies - already at a low levelremain steady for October production. Although crude stocks in the Nation were reduced slightly in early September by rising refinery operations, they totaled 282,096,000 barrels on September 14, or 3 percent above a year earlier. Crude stocks of District origin were 5 percent greater than at the same time in the previous year. District crude runs to refinery stills, at 2,273,000 barrels per day in the first half of September, were slightly below the August level, but national refinery operations rose moderately in August and early September. Consequently, product stocks - already high - increased 4 percent in the first half of September to total 427,842,000 barrels on September 13, or 6 percent above a year earlier. Primarily as a result of the large stocks, wholesale fuel oil prices softened. Gasoline stocks showed a slight contraseasonal gain in early September but, at 173,805,000 barrels on September 13, were 1 percent below a year ago. The gasoline market has shown increased firmness in northern consuming areas, with some upward adjustments in wholesale prices despite retail price wars in scattered parts of the Nation. Nonfarm employment in the five southwestern states increased The voluntary program requested by the President . INguSTRY 10,400 workers from July to to cut crude oil imports thus far has not checked the reach an August total of 4,309,high level of imports, which is aggravating the excess 700, which is 2.6 percent higher supply condition. Although total imports reached a than a year ago and is second only to the record level record level in the first week of September, the total of last December. Most types of employment, including for the 5 weeks ended September 13 averaged manufacturing and construction, shared in the July1,561,000 barrels per day, or 4 percent below the aver- August gain. Texas unemployment reflected this BUSINESS REVIEW 10 ~ . VA LU E O F CO NSTRUCTI O N CO NTRACTS AWARDED N O NAGRICULTURAL EMPLOYMENT ( In thousands of do ll a rs ) Five Southwestern Stotes' January - Jul y Percent chang e Aug. 1957 from Number of persons July 1957 Aug. 1956 4,299,300 783,900 3,515,400 271,700 321,500 4,200,600 772,500 3,42 8,100 267,500 304,400 0.2 .3 .2 .0 1.3 2.6 1.7 2.8 1.6 7 .0 404,800 1, 109,200 184,700 5 15,400 708,100 410,500 1,086,100 178,300 499,000 682,300 .5 .2 .3 .1 - .2 -.9 2.3 3.9 3.4 3.6 Jul y 1957 August Type of employment 1957e Tota l nonagricultural wag e and salary worke rs. . 4,309,700 785,900 Nonmanufacturing . . .• ...• 3,5 23,800 271 ,700 Mining . • .. .. .. . .. •. . . 325,700 Construction • • ••• ... . .. Manufacturing . . .. .. . . . . . Transportation and public 407,000 utilities . • .. . . . . . . . . , Trad e . . ... ....... . . · . 1,111,300 185, 200 Finance • •• . ..•••• • •... 515,900 Se rvice . . . . .... ... .. . . 707,000 Govornment • . .. . ... . . . August 1956r July 1956 June 1957 FIVE SOUTHWESTERN STATES' ...... .... $ 265,359 Residential.. . . . . . • 129,808 All other.. .. .. .. .. 135,55 1 UNITED STATES .. .. . . 2,900,68 1 Resid entia l...... .. 1,286,937 All other .. .. .. .. .. 1,613,744 1 I Arizona , Louisiana, Ne w Mexico, Oklahoma, a nd Te xo s. a-Estimate d. Jul y 1957 Area and type 1957 1956 408,120 $ 298,649 $ 2,153,787 $ 1,980,669 107,397 10 1,203 784,946 7 30,976 300,723 197,446 1,368,841 1,249,693 3,243486 30 13034 19,858,686 19,206,26 2 1, 155:049 1: 143:41 0 7,770,2 51 7,941,505 2,088,437 1,869,62 4 12,088,435 11,264,757 Arizona, Lo uisiana, New Mexico, Ok lahoma, and Te xa s. SOURCE, F. W. Dodge Corporation. PERCENTAGE CHANGES IN VALUE O F CO NSTRUCT ION CONTRACTS AWA RD ED Jon uory -July 1957 from Jan uary-July 1956 r-Revi sed. SOURCES, State employment ag encies. fed eral Reserve Bank of Dalla s. Nonresid e ntial Area seasonal strength, as the August total of 130,600 indicated an 8,800 decline from July. The value of construction contracts awarded in the Southwest during July, in a reversal of recent trends, declined 35 percent from June and 11 percent from July 1956. The changes were an exaggeration of the national pattern. Nonresidential construction showed Sharp declines, while residential awards rose 21 percent from J une and were 28 percent above a year ago. The strike which halted cement production at three major Texas plants from early July to mid-August was a factor in the slowdown of nonresidential construction awards. Total construction awards during the JanuaryJuly period were 9 percent above the first 7 months of last year, with both residential and "all other" construction sharing the gain. A detailed review of construction awards in the Southwestern states for the first 7 months of 1957 reveals that most of the strength has been in public works and utilities construction, which more than accounted for the total increase in construction awards by showing a year-to-year gain of $232 million. A $108 million Contract for a dam in Arizona and four contracts for utili ties construction totaling another $155 million Were the major projects. However, all of the southwestern states, except Louisiana, showed increases in public Works and utilities construction contracts. Residential construction has been another source of strength, with New Mexico the only state in the region failing to show year-to-year expansion. Nonresidential building con~truction has been the major weakness. These awards In the region were down 16 percent from a year ago, compared with a 3-percent gain in the Nation. TOTAL Residentia l building Public works and utilities Arizona . . . . . ...... . 79 -5 0 1 4 9 16 30 0 3 1 7 -2 3 -10 - 13 - 18 -21 - 16 3 226 - 24 11 27 55 42 14 loui siana . . . ... ..... New Mexico . .... .. .. O kla hom a .. . • . . . . . • Texas . . ........... . Southw est . •• •• •• • • United States . ..... SOURCE, F. W. Dodg e Corporation. NEW MEMB ER BANK The Deer Pa rk Na tional Ba nk, Dee r Park Texas a newly org a nized insti tution loca te d in th~ territ~ ry serve d by th e Houston Branch of the Fed eral Reserve Ba nk of Dallas, ope ne d for busin ess Augu st 30, 19 57 , as a me mber of th e Fede ral Reserve System . The new bank ha s capital of $ 200,000, surplus of $ 100000 and und ivi ded p rofits of $ 50,000 . Th e offi ce rs a r~: Ho:.vard T. T: lle psen, Chairm a n of the Boa rd ; H. C. Donahoe, PreSid e nt; W . C. Frels, Executive Vice Presi d e nt· N. A. Sm ith, Vice Pres id ent; and l. A. Hill , Jr., Cas hie:. NEW PAR BANKS Th e First Sta te Bank, He arn e, Texas, an insured nonmember bank loca ted in th e territory se rved by the'He ad Office of the Fede ral Reserve Ba nk of Dallas wa s ad d e d to th e Par List on its ope ning d ate, Se ptem b e r 6 , 1957 . The offic ers are: Brazos Varisco, Pre sid e nt· Wil bur Strong, Executive Vice Pres id e nt; Mor ris Coh'en Vice Pres id e nt (ina ctive ); W . S. Hoyt, Jr., Vice Pr:side nt (inactive ); and Thoma s E. Bras he a r, Cashie r. The Parkdal e Sta te Ba nk, Co rpus Ch risti Texas a n insured, non mem ber ba nk located in the territo ry se;ved by th e San Antonio. Branch of th e Fe d e ra l Rese rve Ban k of Da ll a s, was add e d to the Par Li st on its o pen ing date, September 7 , 1957. The officers a re: R. A. Blu cher, Pres id e nt; Tom Ma this, Exec utive Vice Presid e nt; Walter M. Stoops, Cashier; a nd W . l. Ell is, Ass istan t Cas hi er. BUSIN ES S RE VI EW 11 BANK DEBITS, END.OF·MONTH DEPOSITS AND ANNUAL RATE OF TURNOVER OF DEPOSITS CONDITION STATISTICS OF ALL MEMBER BANKS Ele venth Federa l Reserve District (Dollar amounts in thousands) (In millions of dollars) Debits to demand deposit accounts 1 August 28, 1957 July 31, 1957 August 29, 1956 loans and discounts.• . United States Government obligations ........•. Other sec uriti es ••...............•............ Reserves with Federal Reservo Bank ... .....•. ... Cash in vault e .......... .•••.... ......• . ..... Balances with banks In th e United States ..... ..... Balances with banks in forei gn countriese ••••... . • Ca sh items in proc oss of collection ... .••. Other a ssets o ..•... .•• ..........•..•. . ....... $3,984 2,492 659 1,004 132 938 2 404 241 $3,943 2,463 652 1,016 166 964 2 425 215 $3,881 2,297 596 985 123 966 2 358 220 TOTAL ASSETSe ........................ . .. 9,856 9,846 9,428 1,011 6,266 1,651 1,011 6,335 1,631 1,003 6,195 1,387 Borrowing se •.......................•.•...... Other liabilities e .•...... •... ..... ••••••. .. Tota l capital occounts e ... ........ •... 8,928 41 103 784 8,977 20 70 779 8,585 17 96 730 TOTAL LIABILITIES AND CAPITALe .•...•••••.• 9,856 9,846 9,428 Demand deposits l Percentage change from Item Annual rate of turnover ASSETS 0 August 1957 Area ARIZONA July Aug. 1957 1956 Aug. July Aug. 1957 1957 1956 August 31, 1957 154,307 -9 2 95,191 19.2 20.3 18.2 Monroe .. Shreveport ••••.• •..• 68,238 275,707 13 -1 9 12 51,695 190,308 15.8 17.3 17.9 17.5 15.6 15.8 NEW MEXICO Roswell • •......• •.•. TEXAS 29,803 -1 12 27,034 13.0 13.2 11.9 Tucson • .•. . ... ... ... $ LOUISIANA 0 •••••••••• $ •••• •• • •••• • 0 •••••••••• 0. 0 ••••••• LIABILITIES AND CAPITAL 85,530 -6 180,438 -11 170,035 1 153,427 -7 207,515 5 16,704 4 2,306,304 1 272,786 -2 684,287 -8 105,678 -1 2,273,279 -4 24,018 3 132,538 0 68,954 9 47,452 -3 532,004 -1 19,561 -14 81,748 -6 93,384 -2 99,269 -7 Abilene •• Amarillo ......•..... 0 •••••••••• Austin ........••.... Beaumont ••.•••. •••• Corpus Christi ••••.... Corsicana . •. ... ....• Dallas ... .... ..... .. EI Paso .... •... ... .. Fort Worth .. ........ Galveston ...... ... .. Houston •••••••••••• Laredo • . ... •• •....• Lubbock .•..•. ••. .. • Port Arthur .......... San Angelo . ........ San Antonio .. .. ..... Texarkana' ......... Tyler ............... Waco ••..... .••.. o . Wichita Falls . . ..• .•• 15 10 15 11 13 12 12 10 1 -4 0 13 13 17 5 7 3 9 5 -1 59,973 104,215 118,697 105,084 112,861 21,622 978,057 141,246 352,664 67,409 1,198,247 19,854 94,164 45,321 42,129 341,355 16,588 59,442 62,921 104, 101 16.8 20.5 16.7 17.3 22.0 9.2 27.8 23.5 22.7 18.6 22.7 14.4 16.8 18.6 13.4 18.6 14.3 16.1 17.9 11.4 17.0 23.2 16.2 18.5 21.6 8.9 27.4 24.8 24.1 18.4 23.2 13.8 16.6 17.9 13.7 19.0 16.8 16.6 18.1 12.4 15.5 18.8 15.6 15.8 20.2 8.5 25.6 23.2 22.0 18.6 22.3 13.6 16.3 16.0 11.9 17.0 13.6 15.5 16.6 11.6 -3 7 $4,410,178 21.8 22.2 Dem and de posits of banks .•.. ....... .•••.. ... . 20.6 Total-24 cities ••••.... $8,082,966 Other demand deposits ...••.•••..... . .....•.• Tim e d eposits... .... ............... ..... . •.• . Total deposits ••• ..... •.. ..... •..••... . . . .. 0 0 •• •••••••• t- e-Estimated. BUILDING PERMITS VALUATION (Dollar amounts in thousands) Percontage change Deposits of ind ivi duals, partnerships, and corporations and of states and political subdivisions. I NUMBER J These flgures include only one bank in Texarkana, Texas . Total debits for all banks in Texarkana, Texa s·Ark ansas, including one bank located in the Eighth District, amount ed to $39,858,000 for the month of August 1957. Aug. 1957 Area Tucson .•••... Shreveport .... Abilene .•••.•• Amarillo ...... 1957 July 1957 $ 561,449 553,268 8,181 18,984 -10,803 $ 578,383 569,056 9,327 19,228 -9,901 560,510 548,995 11,515 20,492 - 8,977 454,515 400,662 53,853 10,22 9 43,624 450,175 401,053 49,122 5,374 43,748 451,550 391,247 60,303 6,202 54,101 1,015,964 953,930 62,034 29,213 32,821 1,028,558 970,109 58,449 24,602 33,847 Austin ........ Beaumont .. ..• Corpus Christi . 1,012,060 940,242 71,818 26,694 45,124 August 1956 0 Reserve balances ••....•••.••..... Requi re d reserves ..... Excess reserves .•.• • . ••••••. Borrowings • ..•............•.• ••• Free reserves••••...•••. ........ ",0 0 •••••••• 0 0 0 •• 0 Reserve balances.•....... Required reserve s.•.•.....•.... .. Excess reserves Borrowings ..... Free rese rves•................... 0 0 Dallas ........ EI Paso ....... Fort Worth .... Galveston .• o • • Houston .•••.. Lubbock •••... Port Arthur ... San Antonio ... Waco • •..... . 0 COUNTRY BANKS ••••••••• 0 • 0 0 • •••••• 0 ••••••• ••••••• 0 ••••• MEMBER 8ANKS Reserve balances • ••. ..•.. •.. •••.. Required reservos ••.•.•.•••••• Excess reserves ••••.........•.. •• Borrowings . •• •.•.. .......•. •.••• Free rese rves •.........•. 0 0 0 • ••••••• 1957 1957 8 mos. 1957 July Aug. comp owith 1957 1956 8 mos. 1956 8 mos. 1957 380 3,392 488 3,524 1,509 16,692 164 263 250 447 316 2,109 262 764 155 1,366 186 326 1,557' 393 147 1,008 1,872 1,841 2,827 2,673 15,846 3,287 4,992 1,143 11 ,184 1,644 1,946 12,219 3,274 1,141 1,333 1,916 5,735 1,639 1,499 9,687 2,464 3,510 180 21,369 1,532 337 4,834 1,140 514 73,813 $60,214 $ 1,016 $ 13,658 -28 -64 -17 -55 -27 -15 10,055 18,623 31,414 12,978 11,049 91,513 22,926 36,788 2,651 159,035 18,702 4,009 36,249 10,269 8,684 6 -6 23 25 19 -49 -32 -37 -17 12 -29 -45 15 -45 -42 -10 29 84 7 50 25 20 -42 8 52 -10 -25 -10 27 -17 -41 32 1 35 -23 -14 19 19 -19 46 20 18 -19 -5 29 $505,295 -17 14 7 TEXAS (Averages of dally figures. In thousands of dollars) RESERVE CITY BANKS August LOUISIANA Eleventh Federal Reserve District Item from 8 mos. ARIZONA RESERVE POSITIONS OF MEMBER BANKS August Aug. 1957 Wichita Falls .. Total-17 cities .. 9,573 CRUDE OIL: DAILY AVERAGE PRODUCTION (In thousands of barrols) GROSS DEMAND AND TIME DEPOSITS OF MEMBER BANKS Change from Eleventh Federal Reserve District August Area (Averages of dally flgures. In millions of dolla rs) 3,161.5 Texas .......... . •...... 2,791.0 559.3 Gulf Coast ...... • .. . . . West Texa s ... .. ...... 1,172.0 171.8 Ea st Texas (proper)....• Panhandle ............ 106.6 781.3 Rest of State . ......... 244.8 South eastern N ow Mexico .. 125.7 Northern louisia na 0" ••••• OUTSIDE ELEVENTH DISTRICT. 3,639.0 UNITED STATES .. .......... 6,800.6 ELEVENTH DiSTRiCT . ....... GROSS DEMAND DEPOSITS Rese rve TIME DEPOSITS Country Date Total city banks banks Total city bonks Country banks 1955: August .... 1956: August .... 1957: April • ••. . May ••••• $7,145 7,210 7,412 7,199 7,265 7,415 7,258 $3,480 3,529 3,623 3,502 3,587 3,680 3,539 $3,665 3,681 3,789 3,697 3,678 3,735 3,719 $1,277 1,381 1,533 1,565 1,591 1,619 1,639 $755 764 808 831 849 871 884 $522 617 725 734 742 748 755 June • • . . • July . ..... August . . •. Reserve 1957' July 1957' August 3,185.5 2,806.2 561.3 1,177.6 174.2 105.4 787.7 249.7 129.6 3,725.3 6,910.8 3,460.1 3,098.6 632 .1 1,284.4 2 13.3 107.0 861.8 234.8 126.7 3,734.9 7,195.0 1956' July 1957 -24.0 -15.2 - 2.0 -5.6 -2.4 1.2 -6.4 -4.9 - 3.9 -86.3 -110.2 SOURCES: 1 Estimated from American Petroleum Institute weekly reports. , United States 8ureau of Mines. August 1956 -298.6 -307.6 -72.8 -112.4 -41.5 _.4 _80.5 10.0 -1.0 -95.9 -394.4 -
@FedFRASER