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BUSINESS
REVIEW
OCTOBER 1958
Vol. 43, No. 10
F.ORMS OF BANK LENDING TO SMALL BUSINESS
IN THE ELEVENTH DISTRICT
This is the second of two articles published in this Bank's
Business Review, relating to commercial bank lending to small
business. Background information for this article, as for the
preceding one, was developed in the course of participation by
the Federal Reserve Bank of Dallas in a System-wide inquiry into
small-business financing.
A discussion of the availability of bank credit to small firms
must take into account the fact that small businesses borrow under
a number of different arrangements. Generalizations about the
credit standards required of small businesses are apt to be misleading because the credit standards required of a borrower vary
with the type of loan which is requested. Similarly, the maturities
of bank loans to small-business firms and the rates of interest
involved depend, to some extent, upon the form of credit extension. The prevalence of a number of different forms of credit
extension lends flexibility to the lending policies of commercial
banks in meeting the credit requirements of small businesses. Since
a number of small businesses do not meet sound banking requirements for loans on an unsecured basis, the existence of alternative borrowing methods permits their accommodation on terms
which are satisfactory both to the bank and to the borrower.
Equipment Financing
Of the various forms in which bank credit is extended to small
business, equipment financing is one of the two most commonly
used. Only one bank of the 68 included in the Eleventh District
FEDE AL
RESERVE
DALLAS,
BANK
OF
DALLAS
TEXAS
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
survey of bank lending to small business indicated that
equipment financing for small business is never extended. The financing of commercial and industrial
equipment usually is handled on a direct-loan basis, although most banks also provide funds indirectly by
purchasing paper from equipment dealers. The rediscounting of equipment paper from sales finance companies is not a common practice in the Southwest, reportedly because of the absence of demand.
Requests from small businesses for equipment financing come from virtually every line of business in which
a relatively heavy investment in fixed assets is required.
Thus, District banks indicated that the most important
users of equipment financing are retail stores of nearly
all kinds, cafes and restaurants, manufacturing firms,
building contractors, oil well drilling contractors and
oil well servicing firms, laundries, and commercial operators of motor vehicles.
The willingness of commercial banks to finance commercial and industrial equipment for small-business
firms is influenced by a number of factors. Of great importance, certainly, are the nature and type of equipment for which financing is sought. Since commercial
banks generally must look to the recovery value of
equipment for protection should the borrower be unable to repay his indebtedness, most banks indicated
a reluctance to extend direct loans for financing specialpurpose equipment or equipment that is subject to rapid
depreciation or obsolescence. Thus, equipment which
has a limited market - such as oil well drilling rigs,
oil well servicing equipment, the more complex types of
industrial machines, and heavy earth-moving equipment - is not as readily financed as motor vehicles,
store fixtures, commercial refrigeration units, and standard machine tools. Similarly, most banks reported a reluctance to finance equipment that is subject to extensive damage if not operated by employees with a relatively high degree of skill. Many types of earth-moving
equipment, for example, fall into this category.
As a general rule, the banks indicated that they are
cautious in providing equipment financing for new businesses in lines which have relatively high mortality rates
or frequent changes in business ownerships. Firms of
these types are service stations, small retail grocery
stores, cafes and restaurants, and establishments serving alcoholic beverages. Except for the latter, however,
established businesses in these lines do not appear to experience great difficulty in obtaining equipment financing. The survey results suggest that both new and estab-
I~USINESS
REVIEW
lished businesses serving alcoholic beverages find it
difficult to obtain equipment financing. The reluctance
of banks to finance such businesses reflects, in large
measure, the possibility of damage to equipment and
the possibility that violation of governmental regulations pertaining to the sale of alcoholic beverages will
result in closing of the borrower's business establishment.
The terms on equipment loans to small businesses
tend to be fairly uniform from one bank to another.
Most of the commercial banks contacted in the survey
finance between two-thirds and three-fourths of the purchase price of new equipment, and typical maturities on
loans for new equipment were reported at 24 to 36
months. Reported rates on such loans usually range between 5 and 7 percent, with a preponderance of rates at
6 percent. In rural areas, however, slightly higher rates
are customary. These terms apply to machine tools,
commercial refrigeration units, store fixtures, construction equipment, and trucks and trailers. In general, the
terms on equipment loans for store fixtures and con
struction equipment tend to be moderately more conservative than the terms on loans for financing other
types of standard equipment.
The survey banks indicated that the amount of loans
to small businesses for the purchase of used equipment
generally ranges between 50 and 67 percent of the purchase price, with an average maturity of 18 to 24
months. In most cases, rates are approximately 1 percentage point higher than rates on loans to finance new
equipment.
Unsecured Loans
At most commercial banks, lending to small business on an unsecured basis accoun ts for a major share
of total lending activity involving small firms. Usually,
unsecured loans are short-term credit extensions in the
range of 30, 60, 90, or 120 days and are related to the
financing of inventory, receivables, or other seasonal
requirements. Sixty-two of the 68 banks represented in
the survey reported that short-term, unsecured loans to
small businesses comprise a principal form of credit
extension to small firms.
While a number of small businesses in the District
obtain short-term, unsecured loans under lines of credit
established at their banks, iJ;l the majority of cases the
relationship between small-business borrowers and
their bank is not this formal. Practices vary widely with
respect to the extension of unsecured lines of credit.
Thus, a number of banks represented in the survey
have placed a large proportion of their small-business
borrowers under unsecured lines, while at other banks
the proportion of small-business borrowers having unsecured lines reportedly is quite small. At nearly all
banks, however, the proportion of small-business borrowers having unsecured lines of credit was reported as
being somewhat smaller than the proportion of large
firms which borrow under unsecured lines. This fact
is explained generally in terms of (1) the larger proportion of firms in the small-business population which
do not meet the requirements set forth for obtaining unsecured lines of credit and (2) the relatively greater
importance that large firms attach to securing such
lines.
An examination of the standards which banks require for unsecured lines of credit indicates that size of
business is not a strategic factor in determining
whether an individual business applicant will be accommodated on this basis. Naturally, the amount of the
line will be affected materially by the assets and financial strength of the applicant, but the characteristics
which permit an individual fum to obtain an unsecured
line are a history of successful management, adequate
accounting records, profitable operations, the existence
of an established and assured market for the products
or services offered by the applicant, and a history of
prompt repayment of indebtedness. In addition, firms
must have favorable liquidity and net worth positions
to qualify for unsecured lines.
during which the repayment ability of the borrower
is subject to the vicissitudes of business, to the health
of the business owner, and to other factors. The vulnerability of small businesses to sickness or death in
the business management and the financial inability of
most small businesses to weather protracted periods
of adversity, consequently, are strategic considerations
entertained by banks in evaluating small-business applications for unsecured term loans.
While most survey banks indicated a reluctance to
make unsecured term loans to any borrower, it is
apparent from the survey that large firms are more
successful than smaller firms in obtaining credit accommodations on an unsecured term basis and that many
of the unfavorable considerations attached to lending
to small firms are not present in making unsecured term
loans to large firms. The corporate form of organization, plus the greater financial strength of large business firms, may remove a number of the objections
which are present in the consideration of term loans
to small businesses.
The greater reluctance of banks to extend unsecured
term loans to small firms is evidenced not only by the
greater difficulty experienced by these firms in obtaining accommodation on this basis but also by the more
conservative terms on which they are accommodated.
While unsecured term loans to large firms sometimes
feature maturities of 5 years or more, bankers contacted in the survey reported that small businesses are
not accommodated with loans having maturities in
In contrast to the prevalence of short-term, unse- excess of 3 years. In general, the survey results sugcured credit extensions to small firms, the survey banks gest that rates on unsecured term loans to small busireported a general reluctance to make unsecured loans nesses are slightly higher than rates on comparable
to small businesses ort a term basis - or for a period loans to larger business establishments. As is generally
of longer than 1 year. In part, this attitude results from the case in other forms of lending, the rate differential
the traditional preference on the part of commercial usually results from higher operating costs involved
bankers for confining their lending activity to short- in smaller loans and from the greater degree of risk
term working capital loans and, in this respect, applies assumed on loans to many small businesses.
to both large and small businesses.
However, in large measure, the reluctance on the
part of banks to provide longer-term unsecured credit
to small businesses stems from possible dangers which
are not always present in lending to large firms. On an
unsecured loan, other things being equal, the degree of
risk assumed by a commercial bank tends to vary directly with the length of the maturity of the loanespecially when tlle loan is to an individual, rather than
a corporation. In essence, this relationship reflects the
fact that a longer maturity extends the period of time
Loans Secured by Guarantees and
Endorsements
A large proportion of small firms whose credit standings do not meet the requirements for unsecured loans
are accommodated on the basis of promissory notes
endorsed or guaranteed by a third party. At 61 of the
68 survey banks, this form of lending to small business
is a prevalent practice. The bulk of commercial bank
lending to small business on the basis of endorsements
and guarantees involves the extension of credit to firms
BUSINESS
REVIE~I
with very small asset structures. Thus, small repair
shops of all types, independent grocery stores, service
stations, cafes, and other small retail outlets commonly
were listed by survey banks as the principal recipients
of credit extended on this basis.
Firms which borrow on the basis of guarantees and
endorsements customarily borrow on promissory notes
endorsed by a friend or relative of the borrower. CorpOl'ate guarantees are not used frequently in the District. Personal guarantees, though strongly preferred
to endorsements at a number of banks, are not as
commonly used. In addition to friends and relatives
of borrowers, suppliers and other beneficiaries of a
business firm are of significant importance in facilitating the credit accommodation of small firms by providing endorsements and guarantees. Most of the survey banks, however, indicated a reluctance to make
endorsed and guaranteed loans if it appears that
recourse to the guarantor or endorser is likely to prove
necessary.
The maturities on endorsed and guaranteed loans
vary markedly. In cases where the financial position of
the endorser or guarantor is unusually strong, borrowers sometimes are able to obtain term financing on an
endorsed or guaranteed basis. In most cases, however,
it appears tllat typical maturities on these loans are
less than 1 year, and quite often less than 6 months.
The extension of guaranteed and endorsed loans to
large firms appears to occur less frequently than granting such credit to small business, and there are indications that borrowing on this basis may be slightly
more difficult for larger. firms. Because loans to large
enterprises generally involve greater amounts, stronger
endorsements or guarantees customarily are required
in lending to these businesses. Moreover, in the case
of guaranteed and endorsed loans to larger firms,
endorsers and guarantors sometimes are required to
put up collateral to support their contingent liability.
In other r~spects, however, the bankers indicated that
lending to small firms on the basis of endorsements
and collateral does not differ significantly from lending to larger firms.
Construction Loans
Sixty of the survey banks reported that loans to
small construction firms occur relatively frequently,
while eight banks indicated that such loans are rarely
or never extended. Most of the survey banks indicated
that they confine their construction lending activity
I:USINESS REVIEW
to those contractors who have an established deposit
relationship. In addition, small contractors who obtain
construction financing customarily are required to
obtain a firm commitment from institutional or other
lenders to take out the mortgage on each project which
is being financed. Except for occasional differences in
rates (linked sometimes to the size of compensating
deposits), construction loans to small contractors and
builders do not appear to differ from construction
loans to larger contracting firms.
Maturities on construction loans to small builders
customarily are linked to the period of actual construction, which, in most cases, was reported as 6 months
or less for construction loans to finance residential
building projects. On loans to finance commercial and
industrial construction projects, maturities of 1 year
or more commonly were reported. Rates on these loans
generally were indicated to be within a range of 6
to 8 percent per annum.
Loans Secured by Collateral Unrelated
to the Business
A significant portion of the small-business population is accommodated on the basis of loans secured
by collateral unrelated to the business, and 59 of the
68 survey banks reported that such loans are a common feature of their lending operations. While there
are several reasons accounting for the frequency with
which small businesses borrow on this basis, the bankers indicated that a substantial proportion of the volume of such loans is made to small businesses whose
credit standings are not sufficiently strong to enable
them to command unsecured credit and whose business assets are not suitable for pledge. In addition,
small businesses sometimes pledge nonbusiness collateral in order to obtain credit in excess of the
amounts which can be obtained from banks on an
unsecured basis or in order to obtain more favorable
maturities and rates than could be obtained on unsecured borrowings.
Maturities on loans secured by a pledge of collateral unrelated to the business vary widely, since this
form of borrowing is used both for short-term seasonal credit requirements and for term borrowing. The
survey banks reported that rates range from 5 to 8
percent. Credit extensions to small firms on this basis
do not differ from extensions to larger firms, except
with respect to the amounts involved and, occasionally, with respect to rates. As a general rule, however,
small businesses are more frequently accommodated
on this basis because of the more frequent marginal
character of their creditworthiness.
Mortgage Loans on Business Property
It is generally true that small businesses experience
considerable difficulty in obtaining longer-term financing from their banks. In addition to equipment
financing, which is a very common method of directly
financing businesses on terms other than short term, a
second method by which commercial banks extend
longer-term financing to small businesses is the extension of mortgage loans on business property. This
form of credit extension" while not used as frequently
as most other means of extending bank credit, nevertheless is an important feature of the lending operations of the great majority of banks represented in
the survey.
The bankers indicated that in the State of Texas,
this form of credit extension would be more commonly used were it not for state statutes providing for
"business homesteads" and carefully restricting the
circumstances under which business homesteads may
be subjected to forced sale in order to satisfy the
claims of creditors. As a result of these statutes, smallbusiness borrowing on business properties in Texas
customarily is confined to borrowing for tlle purpose
of (1) purchasing business property or (2) financing
improvements upon business property.
Typical maturities on mortgage loans to small businesses were reported at 3 to 5 years, although maturities of as long as 10 years were cited occasionally.
Rates on such loans generally were reported as approximately 6 percent. Practices with respect to lending to small business on a mortgage basis do not
appear to differ materially from those involved in
lencjing to larger firms, according to the survey banks.
indicated that they finance other small retailers by the
purchase or acceptance of pledge of consumer paper.
The specific small businesses which obtain bank loans
in this form are automobile dealers, appliance and
hardware stores, furniture stores, farm implement dealers, and (in isolated instances) such retail establishments as music stores, sporting goods stores, and other
establishments which handle consumer durables.
In so far as these businesses are able to obtain bank
credit on the basis of promissory notes executed by
their customers, the most common method is by the
sale of this paper. While the survey uncovered a number of instances in which business establishments borrow on the pledge of consumer paper supported by
chattel mortgages and conditional sales contracts, the
volume of credit extended to small businesses in this
manner is smaller than the volume of consumer paper
which banks purchase outright. In most cases, consumer paper is purchased from retail stores and dealers with full recourse, although arrangements under
which the contingent liability of the dealer or store
is limited (or removed altogether) are not uncommon.
Basically, the ability of a small enterprise to obtain
bank credit by tlle sale of consumer paper is related
to its financial strength and to the quality of the consumer paper that it generates. To the extent that banks
purchase consumer paper with recourse to a store or
dealer, they customarily are anxious to avoid acquiI:ing an amount of paper which bears a disproportionate
relationship to the ability of a small-business firm to
assume the contingent liability. At the limited number
of banks which purchase consumer paper without recourse, tlle ability of small-business firms to obtain
funds by the sale of consumer paper is related more
or less exclusively to the quality of the paper that they
generate, although a deposit relationship with the
purchasing bank frequently is required.
Purchase or Acceptance of Pledge
of Consumer Paper ,
Accounts Receivable Financing
The frequency with which individual banks reported
the extension of credit in the form of purchases or
acceptances of pledge of consumer paper from small
retail stores and dealers indicates that this form of
credit extension is of considerable importance to the
small-business community. In virtually every District
city and town covered in the survey, there was at least
one bank (and frequently more) which reported being
active in this type of financing. Of the 68 banks contacted in the survey, 40 reported that they commonly
finance automobile dealers in this manner, and 49
Of the 68 banks represented in the survey, 48 reported being active in providing accounts receivable
financing for small-business firms. Outside of banks
in smaller cities and rural areas, where this type of
financing commonly is avoided because of the expense
and administrative detail involved, accounts receivable financing is a standard form of credit extension.
Not all small-business firms qualify for accounts receivable financing, however. Banks prefer, for example, that the size of each account receivable which is
pledged be fairly large - generally above $50 and
BUSINESS REVIE:I
quite commonly much higher. Furthermore, although
most banks reportedly have no formal minimum
credit-rating standards on accounts that are acceptable
for pledge, small businesses whose receivables are not
of superior quality generally are not accommodated
on this basis.
Even though there are exceptions, it appears from
the survey results that the small businesses in the
Eleventh District which are most commonly accommodated on the basis of their accounts receivable are
those that manufacture goods and provide services on
a contract basis for firms whose credit ratings are relatively high. Subcontractors of virtually all lines are
listed by banks as obtaining accounts receivable financing, as are such lines of business as printing firms,
seismograph exploration concerns, .oil well drilling and
servicing contractors, and trucking firms. In addition,
many small-scale wholesalers and small manufacturers
are accommodated on this basis. At a number of
banks included in the survey, accounts receivable
financing also is provided for retail stores.
Loans Secured by Inventory
Because of state laws restricting the creation of a
valid lien against goods which daily are exposed for
sale, inventory-secured loans in most of the Eleventh
Federal Reserve District are confined largely to loans
against warehoused inventories and inventories of automobiles and certain appliances, for which special
arrangements are made. In addition to the legal complications which render it difficult for small businesses
to obtain inventory-secured loans, further difficulties
stem from reluctance on the part of a substantial num-
ber of banks to extend credit secured by inventories.
The bankers indicated that this reluctance results
largely from the administrative detail and expenses
involved in handling these credits. Inventory-secured
loans are not, therefore, one of the most frequently
used methods of financing small business. Almost onethird of the 68 survey banks reported that accounts
receivable financing for small business is provided
infrequently.
To a number of lines of small business, nevertheless, the pledge of inventories constitutes the most
important method of obtaining bank credit. Commodity dealers, for example, are important users of inventory-secured loans, as are wholesalers and distributors
of petroleum products, foods and drugs, and a large
variety of manufactured products. Manufacturers who
warehouse their products prior to sale also are accommodated at those banks which handle inventory
financing. In addition, of course, bank financing of the
inventories of automobile, farm implement, and appliance dealers is quite common.
Banks indicated that the terms and conditions under
which inventory financing is extended to small business do not differ noticeably from the terms and conditions applicable to inventory financing for larger
firms . In general, the ability of both large and small
business enterprises to obtain inventory financing
depends upon the market and price stability of the
inventory which is pledged and upon the general credit
standing of the borrower.
EL EVE NTH FE DERAL RESERVE DI STRICT
~ Dalla . Heod Office Torrltory
IIJl1I) HOU l ton Bronch Territory
i!:l:;:;:;:J Son Antonio Bronch Territory
~ El PO l O Branch Torrllor),
BUSINE SS REVIEW
6
LESLIE C. PEACOCK
Financial Economist
BUS INESS
REVIEW
BUSINESS, AGRICULTURAL, AND FINANCIAL CONDITIONS
Seasonally adjusted department store sales in the Eleventh
Federal Reserve District during
August reached a new record.
Again in August, year-to-year
sales comparisons were stronger for the soft goods
lines than for hard goods. New car registrations in
August in the District's four largest market areas were
one-third less than in August 1957 but were only
slightly below the July level.
Agricultural conditions in most of the District continue favorable, although widespread rains - some
of cloudburst proportions-have resulted in lowered
grades and some losses in cotton yields. Fall pasture
prospects remain favorable, and livestock are in
good condition. Cash receipts f rom farm marketings
in the District states during the first half of this year
were one-third above the same period in 1957.
Continued strength in commercial and industrial
loan demand highlighted recent changes at the
weekly reporting member banks in the Eleventh
District. During August, the District's country banks
As a result of continued special
sales and back-to-school promoti0ns, department store sales in
the Eleventh District during
August, on a seasonally adjusted
basis, were sh arply higher than in July and were
moderately above a year ago. The August seasonally
adjusted sales index reached a new record of 172 percent of the 1947-49 average, compared with 162 in
July and 169 in both July and August 1957.
Without adjustment, August sales were 11 percent
more than in July but, because of one less trading day,
were 2 percent below August 1957. During the fITst
2 weeks in September, sales were fractionally above a
year ago, bu t for the year to date, cumulative sales were
still 2 percent under the comparable year-earlier period.
Reports from District stores which furnish information on the distribution of sales by departments show
reported greater availability of free reserves, while
a moderate decline was reported by the reserve city
banks. Currency in circulation of the Federal Reserve
Bank of Dallas rose during the 4 weeks ended September 17.
Employment of nonfarm workers in the District
states showed a normal seasonal upturn in August,
led by increases in trade and construction. Unemployment in Texas declined further to reach 5.1 percent of the labor force.
The value of construction contracts awarded in the
District states during July, while down 10 percent
from the June record, was sharply above a year ago.
Residential awards continued to show strength, and
nonresidential contracts were nearly double the yearearlier level.
Despite a 7-year low in crude oil stocks, the recent
rise in production is scheduled to halt, at least temporarily, in October. An imbalance between gasoline
and distillate stocks is one of the major problems
facing the industry this fall.
that the dollar volume of sales in most departments in
August was less than in August last year. In general,
this fact is attributable to the decrease in the number
of trading days. As in recent months, more strength
relative to a year ago was apparent in soft goods lines
than in hard goods. Men's and boys' wear sales
DEPARTMENT STORE SALES AND STOCKS
(Perce ntag e change 'In retail value)
STOCKS
(End of month)
NET SALES
Aug . 1958 from
Aug. 1958 from
Ar ea
Total Eleventh DI. trict .•••• • •• • ••• • •
Cor pus Christi • • ••• . .• • •• •••••••• ••
Dalla •••.• .•.. , . ... • • .•••.•••...•
EI Pa so . ...... , . . ................
Fort Warth .... , . . .. . ...... .... ...
Houston • • • •• • • • • •••• • • •• ••• • ••••
San Antonio ••• • • •••••• • • • ••• • •• • •
Shre ve port, la ..•••. . . . • •• • • •• •• ••
Waco •... ... ... •... . • • • •• • • •.• • •
Other citi es •• •.••• ••• •• " ••••••• •
July
1958
Aug .
195 7
8 mos. 195 8
compo with
8 mo •. 1957
11
19
12
19
16
4
5
- 2
- 4
- 2
4
4
- 10
0
- 10
- 4
3
-2
- 6
0
3
- 1
- 9
1
- 6
- 8
2
14
17
16
BUSINESS
Jul y
1958
Aug .
1957
7
6
7
15
6
2
5
7
10
10
- 6
- 7
- 6
4
-5
- 14
0
- 6
-9
- 1
REVIE~I
INDEXES OF DEPARTMENT STORE SALES AN D STOCKS
Eleventh Federal Rese rve District
=
(1947-49
100)
SALES (Doil y overag e )
STOCKS (End of month)
Dote
Unadjuste d
Sea sonally
adjusted
1957, August. ____ __ _
1958dune _____ _ . . .
Jul y.... ......
August. . . . . . .
157r
147
144
160
169r
162
162
r p -
Unadjusted
175r
156
155
165p
172
Seasonally
adjusted
175r
168
163
165p
Revised .
Preliminary.
SALES AT FURNITURE STORES AN D
HOU SEH OLD APPLIAN CE STO RE S
(Percentoge chang e in retail value)
August 1958 from
- - - - - - - 8 mos. 1958
lin e of trade
July
August
compo wit h
by area
1958
1957
8 mos. 1957
FURNITURE STORES
Total El eventh District. . . . . . . . . . . . . . . • . . .
Amarillo .. . ...... .... . . ....... ..... .•.
Austin . . . .. . ... ... . .. . . . ... . . . . . .. . ...
Dalla s.. . .... .. .. . ......... . ... ... . .. .
2
-28
8
0
-2
15
- 1
-15
-3
- 2
Houston . • . . . . . . .. . . .•. . . . . . . . . . . • . . . .
11
7
Lubbock . . . . ... . .... . . .. . .... ... . . . . . .
San Antonio . . . . . . . . . .. . . . . . .. . . . ... . . .
5
-7
6
-1
-2
14
Shreve port, la . . . . . . . . . . . . . . . . . . . . . . . . .
Wichita Falls.. . . . . .. .. . .... .. . . . .. . ...
Other cities. . . . . . . . . . . . . . . . . . . . . . . . . . .
HOUSEHOLD APPLIANCE STORES
Total Eleventh District. . • • . . . . .. . .. . . . . ..
Dalla s.. ... . .. .. . .. ... .. . ........ .. .. .
24
31
7
0
2
-7
-7
- 15
- 15
-7
-4
-9
6
20
22
increased 3 percent; and in the women's and misses'
apparel departments, sales of blouses, skirts, and sportswear were up 4 percent. However, women's and misses'
coats and suits and dresses showed sales decreases of
3 percent and 6 percent, respectively. In the homefurnishings departments, furniture and bedding sales were
down 6 percent, as were sales of rugs, carpets, and linoleum. Major household appliance sales were 9 percent
below August 1957, despite a 13-percent gain in airconditioning unit sales.
August department store inventories in the District
were 6 percent below a year earlier but were up 7 percent from the preceding month. Reports from a selected
group of stores on orders outstanding, new orders, and
receipts of merchandise show approximately seasonal
month-to-month movements in August at levels which
were 4 to 6 percent below August 1957.
New car registrations during August in the metropolitan areas of Dallas, Fort Worth , Houston, and San
Antonio were 5 percent less than in July and 33 percent
below August last year. Each of the individual areas
showed decreases from both the previous month and a
year ago. Month-to-month declines varied from 1
percent in Houston to 10 percent in Dallas, while the
I :USIN ESS REVI EW
year-to-year declines were 9 percent in Fort Worth, 28
percent in San Antonio, 38 percent in Houston , and
39 percent in Dallas. Cumulative registrations for the
four areas through the end of August were 26 percent
under the corresponding year-earlier period.
Weather condi tion s during the
p as t month va ri ed widely
throughout the District. In the
early part of the month, generally
hot, open wea ther hastened maturity of crops; farmers made excellent progress in
harvesting and in the preparation of land for fall planting. Subsequently, tropical storm Ella brought muchneeded rain to central, coastal, and southern sections
of the District, and a series of cool fronts triggered
widespread rains - some of cloudburst proportions throughout the District. Particularly heavy rains fell in
the Texas Blacklands eastward into Louisiana and in
south-central portions of Texas. The precipitation and
accompanying cool weather slowed harvesting operations but provided much-needed moisture in range
sections and for crops in western dry-land areas.
Recent rains improved prospects for a late cotton
crop but have delayed openings of mature bolls and
retarded harvest. The cotton crop in the District states
is placed, as of September 1, at 6,040,000 bales, or 15
percent larger than the outturn in 1957 and 2 percent
larger than the 1947-56 average. In Texas, indicated
production is placed at 4, 200,000 bales, or 16 percent
above the 1957 output; in the other District states,
production increases range from a 3-percent gain for
Oklahoma to a 21-percent increase in New Mexico.
Harvesting of grain sorghums is virtually complete
in eastern areas and is well advanced in the Low Rolling
and Southern High Plains of Texas and in eastern New
Mexico. The output of grain sorghums in the District
is placed at 284,891 ,000 bushels, or 6 percent above
the previous record crop harvested in 1957.
Late-planted peanuts also were helped by recent precipitation. Peanut output in the District states is estimated to be 58 percent greater than last year. Rice
harvesting is in the final stages in the coastal areas of
Louisiana and Texas. High winds and rains accompanying hurricane Ella resulted in some damage to
rice, but losses are expected to be li ght. This year's rice
crop may exceed the 1957 output by 12 percent.
Fall pasture prospects improved sharply during the
past month as a result of widespread precipitation.
CROP PRODUCTION
Texas and Five Southwestern States
(In thou sa nd s of bushe ls)
FIVE SOUTHWESTERN STATES '
TE XAS
Estimate d
Ave rage
Crop
Se pt. 1. 1958
1957
Cotton 2 ••••••• ••
Corn ....... ... •
Wint e r Wh 9 0t. •••
Oats ...........
4.200
44.720
77.441
43.55 2
8.694
270
12.540
253.855
360
2.503
250.325
2.148
1.320
38.000
3.632
40.020
33.669
35.260
5.481
180
11.104
238.095
126
2.316
159.840
1.630
1.200
55.000
Barl ey ...... . ..
Rye .. •.... . . ...
Rices ••........•
Sorghum groin •..
Flaxseed .••.. ..
Ho y·' ...........
Peanuts li ••••••••
' rlsh potatoes(j •.•
~:c~~tsr.~t~.t~~~ ~. :
Estimated
Average
1957
1947-56 Sept.l. 1958
3.937
41.525
43.687
23.852
1.892
240
12.863
96.256
827
1.690
213.524
71.498
71.370
31.640
6.040
75.042
200.039
67.640
33.162
2. 175
24.282
284.891
385
6.544
406.225
5.390
6.376
72.500
5.242
61.440
81.912
53.558
23.711
1.255
21.704
267.742
164
6.047
256.640
4.495
6. 146
108.500
1947-56
5.906
72.283
118.313
39.918
12.241
B17
25.133
113.676
1.146
5.04 1
324.617
73.424
76.485
69.624
] Arizono , Louisiana , New Me xico, Oklahoma, and Texa s.
In thou sands of bales.
In thou sa nd s of bags containing 100 pounds e ach.
, In thou sand s of ton s.
r. In thou sa nd s of pound s.
o In thou sand s of hundredweight.
7 Averag e , 1949-56 .
:.!
:l
increasing $16 million in the 4 wecks ended September
17. Recent strength has been particularly noticeable in
loan demand from metal and metal products manufacturers and construction firms, as production and building totals have risen in the past 90 days. On the other
hand, credit requirements have slackened for transportation equipment manufacturers and sales finance concerns, the loan decline for the latter category being
largely accounted for by continued slow sales of new
automobiles.
Also important have been the continued gains in
deposits. Total deposits of the weekly reporting member
banks rose $33.8 million during the 4 weeks ended
September 17 and on that date were 10.3 percent above
a year ago. The recent rise was mainly in demand
COND ITIO N STATISTICS OF WEEKLY REPORT ING
MEMBER BANKS IN LEAD ING CITIES
SOURCE , United States De portment of Agriculture .
Eleventh Federal Reserve District
CASH RECEIPTS FROM FARM MARKETINGS
(In thousands of dollars)
Five Southweste rn States and United States
(Dollar amount s in thou sands)
Perc entage
chang e
1958
1957
Texa s ......•......•..••..••
194.507
116.675
68.964
284.891
861.482
176.956
117.559
54.984
190.809
603.953
10
-1
25
49
43
Total.... . ....... . .. ......
United States . . . . .. . . . . . . . .
$ 1.526.519
$ 13.868.003
1.144.261
$ 12.414.258
33
12
Arizona •.•.......... .. . •• ..
Loui sia na ••• . ••••••••• ••.•••
New Me xico . ••• ••. •.•. ..... •
Oklahoma .... .. .... ...•. ...
$
SOURCE , Un ited 'Slates Deportm e nt of Agriculture.
Forage supplies, particularly, were improved in the
southern counties and Trans-Pecos area of Texas and
in southern New Mexico. Pastures throughout most of
the District are making good growth, and all classes of
livestock are in good condition.
Cash receipts from farm marketings in the District
states during January-June of this year totaled
$1 ,526,519,000, or 33 percent above the comparable
period in 1957. In the Nation, cash receipts are 12
percent greater than last year. All of the District states
except Louisiana registered gains in receipts as compared with year-earlier totals.
As economic activities accelerated throughout the Southwest,
t il- Q ~'
'{ T <
\.
~ ~, " 'I FINANCE
~i many key banking measurements
\.~~ C{( ~~. At , ~~/ also expanded. Weekly reporting
. . . . .. . ""'".,,,.. . . . . . . ,,,........
member banks in the Eleventh
Federal Reserve District indicated a continued advance
in commercial and industrial loans, with the total
• ~""""'::"":'~"" .':~"""."'''';'''' ''~••.,
"""""
Aug. 20.
1958
Sept. 18.
1957
ASSETS
January- June
Are a
Sept. 17,
1958
Ite m
Commercial and industrial loans • ••... ••• .• • .• $1.571.296 $1.555.274 $ 1.488.207
Ag ricultural loans •• • .•••••..•• ••• .• •••••. . •
41.214
36.540
23.282
20.352
24.068
loans to brokers and deolels in securities .•.•••
17.903
182.343
184.398
Other loans for purchasing or carrying securities.
151.713
231.429
224.133
Real·estate loans •• •••• ••.• •• .• .• •••..•••.•
191.344
18.939
52.232
14.884
loans to banks • • • •••••..••.... • ••.•••.•.•.
All other loons •••. ........ . .....•.........
642.039
657.273
626.135
Gross loans ..•...•...•••...••..••..••..
less reserves and unallocated charge·offs ••
2.707.612
45.818
2.733.918
45.729
2.513.468
42.652
Ne t loans • .• •• .. . •• .• •• ....• • •••.• •• . ••
2.66 1.794
2.688.189
2.470.816
U. S. Treasury bills ••... •...... ...... . .... •.
69.433
199.877
269.041
924.367
323,127
84.307
233.772
269.272
947.222
311.255
115.591
112.068
158.099
816.760
278.001
Balances wit h banks in foreign countries • •.•••.
Currency and coin •.•. • ... • ••.. • • •. •••.•••.
Reserves with Fed e ral Rese rv e Bank •• • •..• •. ..
Other a sse ts •• • ... • •...••.•• • • . •• • •. •• •.• •
1.785.845
480.907
543.247
1.444
49.220
576.190
175.892
1.845.828
394.559
494.530
1.319
49.030
571.803
154.208
1.480.5 19
490.551
454.297
1.906
48.776
613.383
174.041
TOTAL ASSETS .................. . ....
6.274,539
6,199,466
5,734.289
Banks in foreign countries • • ••.••..••.•••.•
Ce rtifl e d and ofAcers' checks, etc .• • •••.•• ••
2.931.438
69.283
143.661
1.127.875
15.924
68.917
2.838.928
176.687
170.506
1.050.190
21 .084
74.039
2.831.982
66.497
162.394
945.355
19.084
85.228
Total demand deposits •• • •••••. . • • .••••
4.357.098
4.331.434
4.110.540
1.073.360
7.455
421
22 1.291
7.070
1.069.971
7.455
421
221.668
1.903
799.975
12.420
421
206.983
6.750
U. S. Treasury certiflcates of indebte dness ••• .. •
U. S. Trea sury not es •••••••••••.•.•••..••.• •
U. S. Government bonds (inc. gtd. obligations) ...
Other securities • •••••.•• •• •.•••• •••••.•.••
Total investments •••.•••...•••.••••.•••.•
Ca sh items in process of collection •••••...•.••
Balances with bonks In the United Sta tes •......
LIABILITIES AND CAPITAL
De mand d e posits
Individuals, partnerships, and corporations ••••
Unite d States Government • ••• • .••••. •• .• •
States and political subdivisions • .. •• . ••..••
Bonks in the United States . .... . . .... .... ..
Tim e d e posits
Individuals, parfnerships, and corporations •• • •
Unit e d States Government •••••••.••••..••
Postal saving s •.• • . • . .••..•...•••..•.• • •
States and politica l subdivisions ..•..•..• . . .
Banks in the U. S. and for e ign countries ••.••.
---
1.309.597
1.301.418
1.026.549
Tota l capital accounts •. .. ••.•••.••.•••. • •..
5.666.695
34.250
82.927
490.667
5.632.852
14.000
61.134
491.480
5.137.089
54.250
89.784
453.166
TOTAL LIABILITIES AND CAPITAL. • . •• .. •
6,274,539
6.199,466
5,734,289
Tota l time d e posits ••.•••.••••.•••.••..
Total deposits . •.. . ....... •.... .....
Bills pa yable, rediscounts, e tc . . •• • •••...••••.
All other liabilities .. ...••. . •• .. •. .. .•• . ....
BUSINESS
REV I E~
I
RESERVE POSITIONS OF MEMBER BANKS
Eleventh Federal Reserve District
(Averages of dolly Agures. In thousands of dollars)
July
1958
August
1958
$ 573,062
560,155
12,907
3,616
9,291
$556,469
543,631
12,838
300
12,53B
$ 561,449
553,268
8,181
18,984
- 10,803
441,295
379,787
61,508
1,037
60,471
430,50B
37B,562
51,946
1,448
50,498
454,515
400,662
53,853
10,229
43,624
1,014,357
939,942
74,415
4,653
69,762
9B6,977
922,193
64,784
1,748
63,036
1,015,964
953,930
62,034
29,213
32,821
August
Item
RESERVE CITY BANKS
Reserve balances... .. .. ......... .
Required reserves • .......... . ...•
Excess reserves . ................ .
Borrowings •. ••.•..•. • •.•.....•..
Free reserves • .. . .. ... •.. . .......
1957
The Federal Reserve Bank of Dallas reported a $ 23.4
million decrease in its gold certificate reserves during
the 4 weeks ended September 17. Federal Reserve notes
in circulation showed a $9.7 million increase during
the 4 weeks and a $40.1 million increase over the comparable date a year ago, as the rise in Federal Reserve
currency in the Southwest accounted for more than
two-fifths of the national gain from year to year.
COUNTRY BANKS
Rese rve balances •••• .. • .•.. •• • •.•
Required reserves • •.•.... . .•. . • ..
Excess reserves . ................ .
Borrowings • ••..•..•..•....••••.•
Free reserves .. ................. .
CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS
(In thousands of dollars)
MEMBER BANKS
Reserve balances .• ••• ......•..•..
Required reserves . .............. .
Excess reserves . ................ .
Borrowings . .................... .
Free reserves •. • • .••.••••..•.••.•
deposits and was the net result of rather wide swings
in the accounts of different types of depositors. The
United States Government drew down its balances
sharply, but individuals and businesses added a substantial amount to their demand accounts. Time deposits, especially those of correspondent banks, rose $8.2
million during the 4 weeks and were $283 million above
the comparable date in 1957.
Moving counter to the national trend, daily average
free reserves at Eleventh District member banks
increased $6.7 million in August as the total reached
$69.8 million. With the banks attracting additional
demand and time deposits, required reserves expanded
$17.7 million, but reserve balances provided a more
than offsetting increase. Borrowings from the Federal
Reserve Bank of Dallas advanced $2.9 million from
July to August to reach a level of $4.7 million but
declined nearly $25 million from a year earlier. The
increase in free reserves was centered at the country
banks, which showed a gain of $10 million. At reserve
city banks, the principal change in free reserves arose
from a $3.3 million increase in daily average borrowings from the Federal Reserve Bank.
NEW PAR BANK
The Airline State Bank of Houston, Houston, Texas,
an insured, nonmember bank located in the territory
served by the Houston Branch of the Federal Reserve
Bank of Dallas, was added to the Par List on its opening
date, August 29, 1958. The officers are: W. S. Pebworth,
Jr., President, and M. K. Howard, Vice President and
Cashier.
BUSINESS REVIEW
10
Ite m
Sept. 17,
1958
Aug. 20,
1958
Se pt. 18,
1957
Totol gold certiflcate reserve s..... . .•. .. ....
Di scounts for memb er banks . .. . ........... .
$741,684
6,150
$765, 132
1,000
$ 812,108
38,969
312
911,059
950,340
1,019,972
712,636
Other discounts and advances . ............ .
U. S. Government securi ti es ... ............. .
Total earning a sse ts •• ••. .•. .•. . .. . • .. . . .•.
Member bank reserve d e posits.... . ........ .
Fe deral Reserve notes in actual circulation .... .
°
975,940
982.090
966,613
752,772
°
991,523
992,523
965,139
743,027
Having successfully completed a
major inventory adjustment, the
Nation's petroleum industry still
faced a somewhat unbalanced
situation as it entered the fall
marketing season. Total demand for the four major
refined products remained at a level slightly above a
year ago bu t in the 5 weeks ended September 12,
declined nominally from the previous 5-week period
to a total of 6,879,000 barrels per day, despite some
renewed interest in heavy industrial fuel oil.
On the other hand , crude oil production and refining,
encouraged by the early summer demand picture and
the improved inventory situation, moved upward in
their usual delayed reaction. Crude oil production in
early September rose 6 percent in the District and 3 percent in the Nation. District production, at 3,226,000
barrels per day, was 1 percent above a year ago. Crude
oil imports in the 5 weeks ended September 12 averaged
substantially below both the previous period and a year
earlier.
The net balance of rising crude oil production and
reduced imports was an increase in the crude supply.
However, with advancing refinery activity, the enlarged
crude supply was siphoned into products stocks. Consequently, crude oil stocks were reduced nearly 3 percent
in early September and totaled 240,716,000 barrels on
September 13 - the lowest level since early 1951.
Increasing the supply of products, crude runs to
refinery stills rose 4 percent in the District and 1 percent
in the Nation during early September. In addition,
refined products imports increased 12 percent in the 5
weeks ended September 12 to a level 65 percent above
a year earlier. In mid-September, total products stocks
rose 2 percent but were still slightly below a year ago.
Reco~niz~ng these potential supply problems, regulatory
agenCIes m both Texas and New Mexico have reduced
allow abies for October. The Texas Railroad Commissi?n has ordered an II-day producing schedule, which
trIms the state allowable by about 246,000 barrels
per day.
A second major discrepancy has developed within
the products inventories. While gasoline stocks in early
September were at virtoally the same level as a year
ago, distillate fuel oil inventories were well below the
corresponding period in 1957. With the heating season
approaching, larger stocks of fuel oil are needed; but as
they are produced, gasoline will also be produced. The
extent to which the industry can hold down its accumulation of gasoline while producing the needed light fuel
oils will determine whether or not another overinventory problem develops.
Employment of nonfarm workers in the District states, after a
~USTRY
greater than usual seasonal decline in July, showed a normal
seasonal upturn in August to
reach 4,268,700. Although the total continued approximately 2 percent below a year earlier, the 10,600worker increase over July was about equal to the
average July-August gain of the preceding 5 years.
The largest month-to-month employment gains were
recorded in trade and construction. Manufacturing
employment, which had been declining throughout
most of the year, rose slightly in August.
~
Mining activity and employment in the western areas
of the District exhibited signs of improvement in late
August and September. Two major companies
announced plans to increase copper output at their
Arizona and New Mexico mines, with one company
changing from a 5-day week to a 6-day week and the
other, from 4 days to 5 days. In addition, a 32-day-old
strike which had limited potash production in New
Mexico was ended on September 2.
mid-September, compared with a decrease of only 3
percent in the same peri9d of 1957.
The value of construction contracts awarded in the
District states in July, while down 10 percent from the
June record, was 68 percent higher than the July 1957
total- a significant improvement in the year-to-year
margin. Residential awards continued to show strength,
and nonresidential contracts were nearly double the
year-earlier leveL Nonresidential awards in Dallas and
Houston accounted for more than one-fourth of the
total in this category, with each city reporting over $35
million in nonresidential awards during July. One
chemical plant in Houston accounted for $20 million
while in Dallas, contracts for three building projects -'
classified as commercial, bank, and office - totaled
$29 million. In August, Texas construction contract
awards. were down sharply from a record July level,
accordmg to the Texas Contractor series.
Over-all income data indicate that the general economy of the Southwest showed greater strength than the
national economy during the 1957-58 slowdown in
business. Personal income in Texas and the Southwest
during 1957 showed gains of more than 7 percent over
the 1956 totals, compared with a national increase of
5 percent. While agriculture accounted for the largest
part of the region's gain, construction and manufacturing incomes also showed large increases relative to the
Nation. More recent data on state tax collections during
the 12 months ended June 1958 indicate that these
collections were up 3 percent over a year earlier in the
District states, compared with an increase of 2.6 percent for all states in the Nation. However, Texas tax
collections, affected by the curtailment of petroleum
production, rose only 1.5 percent.
NONAGRICULTURAL EMPLOYMENT
Five Southwestern Stotes'
Percent change
Aug. 1958 from
Number of persons
July
1958
August
241,900
3 16,300
4,258,100
735,400
3,522,700
241,400
312,700
4,348,200
784,900
3,563,300
271,800
326,000
utilities. • . . . . . . . • . . .
395,400
Trade... . . . . . . . . . .. .. 1,126,900
Finance.... . .. . . . . .. . .
191,900
Service... . . . . . . . . . . . .
533,100
Government. . . . . . . . . . .
726,700
394,800
1,121,900
191,600
532,400
727,900
4 13,500
1,133,700
186,300
524,900
707,100
August
Type of employment
1958e
1957r
July
1958
Aug.
1957
Total nonagricultural
wage and salary workers .. 4,268,700
Manufacturing. . . . . . . . . . .
736,500
Nonmonufacturing . . . . . . .. 3,532,200
Mining. . . . .. . . .. . . . . .
Construction . . . . . . . . . . .
0.2 -1.8
.1 -6.2
.3
-.9
.2 -11.0
1.2 -3.0
Transportation and public
Unemployment in Texas declined by another 10,800
persons in August to reach a total of 184,700, or 5.1
percent of the labor force. Furthermore, the number of
persons filing claims for unemployment compensation
in Texas decreased 8 percent between mid-August and
.2
.4
.2
.1
-.2
, Arizo".o. Louisiana, New Mexico, Oklahoma, and Texas.
a -
Estimated .
r-
Re vised.
SOURCES , State employment agencies.
Federal Reserve Bonk of Dallas.
8USINESS REV I EW
11
-4 .4
-.6
3.0
1.6
2.8
BANK DEBITS, END-Of-MONTH DEPOSITS
AND ANNUAL RATE Of TURNOVER Of DEPOS ITS
CONDITION STATISTICS Of ALL MEMBER BANKS
Eleve nth Fe d eral Reserve Di strict
(Dollar amounl. In Ihou.and.!
De bits 10 demand
d e posit accounts!
(In mllll"ns of dolla rs )
Percentage
change from
Augusl
1958
Area
Jul y Aug .
1958 1957
Annual r ate of turnover
Augusl 31,
1958
Aug . July Aug .
1958 1958 1957
170,950
-9
11
$ 103,608
19.4
20.8
19.2
69,233
258,605
-5
- 6
1
- 6
4 9,896
17 6,557
16.6
17.4
17.8
18.4
15.8
17.3
29,175
-13
-2
28,216
12.6
14.5
M onroe • ••••• • ••••••
Beaumont •••••••••••
Corpus Christi •••• • •••
Corsi cana •• • .•..• • ••
Dallas •••....••.•...
EI Pa so . ... .. . ......
Fort Worth •• ..... • .•
Galveston • •
0
•••
•••
•
•
Houston ••• • ••••••••
laredo • .. . . . .......
Lubbock •.....•.••..
PorI Arthur •..•......
San Ang elo •• • •. • .••
San Antonio • ••••••••
Texarkana :l •••••••••
Tyler ••• .• . •. . •.••• •
Waco •• ..... ... .. .•
Wichita Falls • • • . .•. •
Aug. 2 8,
1957
loons and di scounts .• ••.....••.. • .••. .. • •.• • . .
Unite d States G overnm e nt obligations ••..•.. • ..•.
Other securities ••.. ••..••... • .. • . . .•• ..•.•• . .
Reserves with Federal Res e rve Bank • • • • .•. . •.. . • .
Ca sh in vault e •••..•... • • .. ••..••. . • • .•.. •• .•
Balances with bon ks in th e Unit e d State s • ..•..•• ..
Balances with banks in for e ign countries o ••• .. . •..
Ca sh it ems in process of collection •.. ..••. .. ..•. .
Othe r a sse ts e ••••. .• •. . • •..••.•. • .•••.. • .....
$4,364
2,732
749
971
136
1,057
1
4 12
244
$4,311
2,581
744
954
133
1,089
1
424
239
$3,984
2,4 9 2
659
1,004
132
938
2
404
24 1
TOTAL ASSETse .. ... • . ... .. . . . ... . .. ..... .
10,666
10,476
9,856
De mand d e posits of banks •• • .. • • . .• . • • . .•. . . . .
Other d e mand d eposi ts •• • •.. • •.••.••.•.••...••
Time d e p osits •••• • .. • • •.••.•••••• .. ••.•. . • •.•
1,181
6,425
2,108
1,160
6,2 90
2,087
1,0 11
6,266
1,651
Tola l de posits .. . ... • .••.. ... ... . .... ... ..•
Total capital accounts e .•.• •• . ••.•• •. •••••. . •..
9,7 14
11
93
848
9,537
14
80
845
8,928
41
103
784
TOTAL LIABILITIES AND CAPITALe •.. . .. . • .. ..
10,666
10 ,476
9,856
ASSETS
13 .0
LOUISIANA
Shreveport . . ........
NEW MEXICO
Roswell .•.......•.••
TEXAS
Abilene . • .• •... . ....
Ama rillo .....•.....•
Austin •••••••••.••••
Jul y 30,
1958
Item
ARIZONA
Tucson • • ••• ••••••••• $
Aug. 27,
1958
De mand d e posits I
L1A8 ILITIES AND CAPITAL
81,996
- 3
180,396
-5
167 ,630
-7
133,770
-7
186,94 3
-3
15,7 60
1
2,153,933
-4
282,251
-4
669,407
-9
86,20 1
- 6
2,178,594
- 5
23,020 - 13
146,198
-1
6 2,2 89 - 11
46,610
-5
514,492
- 9
18,216
- 6
76,657
-4
94,497
-4
97,771
- 5
Tolal- 24 cilies • •. • • ••• $7,744,594
-6
-4
0
-1
-13
- 10
- 6
- 7
3
-2
-18
-4
-4
10
- 10
-2
- 3
- 7
-6
1
-2
60,250
117,453
126,498
103,781
113,5 63
22,057
1,065,968
153,556
362,227
67,742
1,195,234
21,248
101 ,4 14
44,560
42,237
384,784
16,341
62,041
68,833
107,913
16.4
18.5
15.8
15.6
20.2
8.5
24.5
22.3
22.0
15.2
21.8
12.8
17.3
16.4
13.2
16.2
13.4
14.8
16.9
10.9
17.0
19.7
16.7
16.4
2 1.1
8.3
25.7
23.3
23.8
16.3
23 .2
14.4
17.5
18.0
14 .0
17.9
14.3
15.4
17.8
11.4
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
-4
$4,595,977
20.3
21.5
21.8
Borrowing se •••..••..•...•••. " . • .. • • •.••..• •
Othe r liobilitiese .............................
e-
Estimated.
BU ILDING PERM ITS
VALUATION (Dolla r amounts in th ousands)
Percentage change
1
De posits of individuals, partnerships, and corporations and of states and politica l
Aug. 1958
subdi visi ons.
NUM8ER
2 These figures include onl y one bank in Texarkano, Texa s. Total de bits for all ban ks
in Tex arkana, Texos·Arkansas, including on e bonk locate d in Ihe Eighth Dislrlct,
amounted to $40,575,000 for the monlh of Augu st 1958 .
from
Aug.
1958
8 mo s.
1958
Aug.
1958
350
3,573
$ 1,006
$ 11,005
536
3,927
5,588
2 1,819
198
247
305
363
127
1,875
809
740
115
1,388
347
148
1,342
255
163
1,306
2,089
2,033
2,848
2,0 29
16,216
5,2 25
5,339
972
10,539
2, 110
1,407
12,262
1,775
1, 19 1
1,741
2,2 81
2,040
4,645
1,797
13,6 29
7,797
5,522
197
22,465
3,773
346
6,39 2
1,303
922
12,979
18, 205
31,388
14,991
17,531
106,649
44,399
36,473
2,613
154,0 61
26,521
8,044
42,371
10,740
4,972
Tolol - 17 cities .. 9,308
74,841
Area
Jul y Aug .
1958 1957
8 mos.
195 8
8 mos. 1958
camp. with
8 mos. 1957
ARIZONA
Tucson ••• • .•••
NATURAL GAS: MARKETED PRODUCTION
Shre ve port • •• •
(In million s of cubic feet)
First quart e r
Fourth quart e r
1958
Louisi ana •••••. • ••••••••••••••••••
New Mexico •••• • • ••• ••• •• • ••••.•••
Texas ••• • .•••• • •••• . •••••••••••••
568,100
206,200
186,300
1,379,700
52 1,300
202,300
149,600
1,340,200
Total . • • .. • . •• • . . ...• •. .......
2,340,300
2,213,400
Oklahoma . . •... •. • . .•••.•.•..••••
First quarter
1957
Are a
-4 3
- 1
- 19
49
LOUISIANA
1957
518,600
196,300
185,300
1,430,500
---2,330,700
SOURCE : United Stales Bureau of Mines.
TEXAS
Abilene • . . . . . .
Amarillo .. . .. .
Austin . .••. .••
Be aumont •••.•
Corpus Christi . •
Dalla s •• • . . • ..
EI Pa so •.... . .
Fort Worth •• • .
Galveston • • •••
Hou ston •• ••.•
Lubb ock .. ....
Port Arthur •• . .
San Antonio • • •
Waco • • ..••.•
Wichita Falls ..
$ 81,444 $564,761
CRUDE OIL: DAILY AVERAGE PRODUCTION
270
27
- 15
31
4
19
-56 - 64
62
183
-4 1
20
-4 6
41
29
2 16
- 15
57
- 30
9
8
5
-5
146
-25
3
24
32
-6 1
14
110
79
29
-2
0
16
59
17
94
-1
- 1
- 3
42
101
17
5
-43
35
12
- 12
(In thousands of barrels)
Chang e from
Are a
ELEVENTH DiSTRiCT •.•••...
Tex a s ••.••. •• .• . .•• • •••
Gulf Coa sl ••••.......•
W est Tex a s .• • ••..••••
East Texa s (p ro per).....
Panhandle ...... ......
Rest of Stale ... . . . . ...
Southe a stern Ne w Me xico ••
Northern Louisiana • •••• ..•
OUTSIDE ELEVENTH DISTRICT.
UNITED STATES . •... .......
SOURCES :
August
1958 1
July
195 8 1
Augusl
1957'
July
1958
3,046.2
2,689.8
501.1
1, 181.4
152.8
105 .9
748 .6
249.9
106.5
3,810.5
6,8 56.7
2,754.8
2,399.3
461.9
1,03 4.6
128.5
104 .0
670.3
249.2
106.3
3,744.9
6,499.6
3,135.7
2,771.1
54 3.8
1,1 7 9.9
176.7
103.3
767.4
249.6
115.0
3,650.7
6,786.4
291.4
290.5
39.2
146.8
24.3
1.9
78.3
.7
.2
65 .6
357.1
-89.5
-81.3
-42.7
1.5
-23.9
2.6
-18.8
.3
-8.5
159.8
70.3
Estimoled from American Pel rol e um In. 'ilute weekly reporls.
• Uniled State. Bureau of Mine ••
1
BUSINESS REVIEW
12
VALUE Of CONSTRUCTION CONTRACTS AWARDED
August
1957
(In Ihou sonds of dolla rs )
Are a and Iype
July
1958
Jun e
1958
Jul y
1957
January- Jul y
1958
1957
FIVE SOUTHWESTERN
STATES' •. . . . . . ... $ 444,536 $ 496,248 $ 265,359 $ 2,397,155 $ 2,153,787
174, 1 19
Residential. •.• • .••
143,185
129,808
938,552
784,946
270,417
All other •.... ... . •
353,063
135,55 1
1,458,603
1,368,84 1
UNITED STATES .. . ... 3,607,056 3,819,582 2,900,681 20,369,554 19,838,686
Res id e ntial ..•• . •.. 1,557,443 1,364, 231
1, 286,937
8,057,400
7,750,251
All oth er • •. . . . . . . . 2,049,613 2,455,351
1,613,744 12, 312,154 12,088,435
1
Ari zona, Lou is iana, New Mexico, O klahoma, and Tex a s.
SOURCE : F. W. Dodge Corporation •
