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MONGJrHLGJr
BU8INE88
FED ERA L
Vol. 36, No. 9
REVIEW
· R ESE R V E
BANK
DALLAS, TEXAS
o
F
DALLAS
September 1, 1951
SUPPORT THE DEFENSE BOND DRIVE
SEPTEMBER 3-0CTOBER 27
• Every American is urged by the Secretary of the
Treasury to become a partner in the Defense Bond
Drive, which will begin on Labor Day, September 3, and
run through October 27.
• The principal purposes of the Drive are to maintain
and increase the wide distribution of the public debt
among as many of the American people as possible, to
discourage inflationary spending at a time when infla·
tionary pressures arising out of the defense program
are strong, and to encourage the continued practice of
thrift and savings among the American people.
• From the standpoint of self·interest-if from no other
-each banker, businessman, industrialist, employer,
worker, farmer, and, in fact, every American should
give his full support to this Drive .
• It is true that the value of the dollar has declined. It
is also true that strong inflationary forces still threaten.
Everyone should do everything possible to prevent
further inflation . Increased saving through the purchase
of defense bonds is one very important anti·inflationary
step that the American people can take.
• As the value of the dollar has declined, criticism of
defense bonds as an investment has increased. Objec·
tive appraisal of such criticism, however, shows it to be
unfounded.
• There are those who argue that our Government has
been prodigal in its expenditures and suggest that the
public register its protest by not buying bonds. But this is
not the sound or practical point of attack on excessive
government expenditures. The battle against nonessen·
tial spending must be carried to Congress, where spending is authorized-not to the Treasury.
• It is also sometimes said that those who have purchased savings bonds have been treated unfairly because the dollar today is not worth what it was J 0 years
ago. But again, the purchase of savings bonds did not
bring about or contribute in any degree to that decline
in the value of the dollar . In fact, very large purchases
of savings bonds have tended to limit the decline in the
dollar's value.
• We have all contributed in one way or another to the
decline in the value of the dollar . The point of attack on
this problem is to reach a determination that we will
have no more inflation. That problem rests with each
American.
• Another criticism is that savings bonds provide no
protection against future inflation . Neither do cash holdings, bank deposits, savings accounts, life insurance, or
-in fact-any other type of fixed-income investment .
One can almost say, categorically, "There is no protection against inflation. " Again, the point of aHack is to
do those things that will stop inflation. Increased purchases of savings bonds will help to achieve that objective.
• Savings and defense bonds are still the world's safest
investment. If bankers, insurance companies, trust managers, and others highly trained and experienced in
finance do not believe that this is a true statement, how
can we account for the many billions of their dollars that
they have invested in Government bonds?
• For the average American citizel), defense bonds
provide one of the easiest, most certain, safest, and
most popular ways to save. The millions of people on
pay roll savings and bond·a -month plans prove this
statement.
• The purchaser of a defense bond does more than
merely make an investment, important though that may
be. He is helping in a very real way to fight inflation, to
aid his country in building its military strength, to maintain economic stability-in fact, he is purchasing a
share in the future of America .
SAVE THE SAFE WAY
BUY U. S. DEFENSE BONDS
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
120
MONTHLY BUSINESS REVIEW
DEFENSE CONSTRUCTI ON IN THE SOUTHWEST
W. JOHNSON, Industrial Economist
Federal Reserve Bank of Dallas
KEITH
After less than a decade, defense construction is again
rising to a high level in the Southwest, with new industrial
facilities being planned and built at a rate approaching that
of 1942 and exceeding that of the 1946 postwar boom. Such
defense·stimulaLed additions of plant and equipment can
affect significantly the rate of industrial development of an
area. Undoubtedly, defense construction is speeding up the
rate of industrial growth in the Southwest-it did so during
World War II, when many years of growth and industrial
development were compressed into a few years, and it is
proving to be the same sort of catalyst in the present defense
emergency. The rich resources and the labor force of the
area are being turned again, at least in substantial part,
toward the satisfaction of defense and defense·related reo
quirements.
The high level of defense construction in prospect in the
Southwest during 1951·52 appears unlikely to be interrupted
seriously either by the cease·fire negotiations in Korea or by
other lulls in the international tension. For one thing, the
defense program cannot be cut off abruptly; in addition,
the basic differences between the forces of communism and
the democratic nations of the world remain as compelling
reasons for a continued high levei of defense activity. Even
though a lessening of international tensions should have a
moderating effect upon the thinking of the American people,
it probably would only tend to slow down the rate of ex·
pansion of defense production. A moderate downward adjustment in the level of over-all business activity could also
occur, but no great decline would be likely before further
increases in defense spending-based on plans and commitments already made--would turn the trend at least moderately upward again_
The current rapid economic growth in the Southwest,
while paced by the Nation's defense program, reflects the
basic economic advantages of the area; indeed, were it not
for these advantages, much of the current defense construction and productive expansion would not have occurred in
this section of the United States. In other words, aILhough
the importance of the defense program should not be minimized, it is not solely responsible for the area's development.
The Southwest is favored by expansive tendencies in
most of the forces making for industrial growth. The pro·
duction of industrial raw materials, paced by the continuing
discovery of oil and gas resources, has been the basis for
growth in the oil refining and petrochemical industries. The
power potential of large reserves of natural gas has drawn,
and will continue to draw, nonferrous metal and other industries to the Southwest; more recently the value of the area's
huge store of lignite as a source of fuel and power has
attracted the favorable attention of industry. Proximity to
most of the Nation's supply of sulphur- a basic ingredient
essential to the chemical industry-and potash and to large
supplies of pulpwood, grain sorghums for industrial uses,
minerals, and other raw materials has shaped the character
and growth of southwestern industry_ It is upon this firm
and adequate resource base that the many types of manuf acturing and industrial enterprises have developed in the
area through the years, including petroleum and petrochemicals, natural gasoline, synthetic rubber, carbon black, and
various other chemicals. But these are industries that are
essential to defense; consequently, war and defense preparation have stimulated and favored their growth.
An expanding and increasingly skilled lahor force has
aided manufacturing generally and has been important in
attracting new industries and enterprises. The southwestern
labor force, especially the industrial labor supply, tends to
increase relatively more rapidly than is characteristic of the
Nation_ Population in the area is increasing faster than in
older sections of the country; the rural areas of the South·
west continue to have a relatively high birth rate, while at
the same time the need for farm labor declines. For instance,
between 1940 and 1950 farm employment in the five states
lying wholly or partly within the Eleventh Federal Reserve
District declined by 187,000 workers-a very suhstantial
industrial labor potential. Continued mechanization and tech·
nological improvements in agriculture indicate the possibility
of additional migration to cities and to industrial employment. Defense construction and production in this area do
not face the labor problems that are common to older and
more industrialized parts of the country.
The increases in population and income and the rise of
production in nearly all industries in the Southwest have
made the area a richer market for both consumer goods and
capital goods. For some industries this market is, in itself,
sufficient to support an increasing output; while for others
the combination of the southwestern market and economical
access to national and world markets is proving very stimu·
lative. Other factors which are playing a significant part in
the industrial development of the Southwest and which are
attractive from the standpoint of defense production include
water transportation and the construction and improvement
of the Gulf ports, which have brought the Nation and the
world within the reach of economical transportation to thc
Southwest; the mild climate of the area and its effect upon
the type of facility construction; the open spaces and relative
availability of plant sites; the self-generative factors that are
inherent in a dynamic industrial development; and the trend
toward industrial decentralization that has been stimulated
by the threat of war and foreign attack on our industrial
centers.
~
MONTHLY BUSINESS REVIEW
Defense construction has been stimulated greatly by gov·
ernment expenditures and aids. Accelerated tax amortization
granted through cerLiflCates of necessity is perhaps the most
important single program for encouraging industrial plant
expansion. As during World War II, bu siness concerns grant.
ed certificates of necessity arc permilled to write off in a
5·year period a percentage ranging up to 100 percent of thc
cost of the new capital equipment. The program got under
way in October 1950, and by August 10, 1951, certi ficates
of necessity had been granted in the Nation for facilities
costing $8,883,000,000, with accelerated tax amortization
allowed on about two·thirds of this amount. The eventual
total of such facility expansion has been estimated at between
$10,000,000,000 and 812,000,000,000. In the five southwest.
ern states-Arizona, Loui siana, New Mexico, Oklahoma, and
Texas- the total as of Au gust 10 was approximately $1,193,000.000, of which $926,000,000 was in Texas.
CERTIFICATES OF NECESSITY APPROVED
OCTOBER 3D, 1950-AUGUST 10, 1951
121
of these industries are expanding relaLively rapidly in the
Southwest, with the area receiving nearly half of the national
total of certi ficates for petroleum refineries, nearly a third
of those for chemical plants, and about two-thirds of those
for nonferrous metals plants. As a result, the area has reo
ceived a relatively large share of the certificates issued to
date.
In the five southwestern states, data by industry are avail·
able for 80 percent of all certificates approved. Of this
amount, aluminum plants account for about a third; petroleum refineries, about a fourth; and chemical plants,
about a fifth. Texas has 14 percent of the national total
amount for which specification by states is available, rank·
ing second only to Pennsylvania in this respect; another
southwestern state, Louisiana, ranks tenth. The five south·
western states have 18 percent of the total specified by states.
These shares in the national total are about 172 percent higher
in Texas and about 92 percent higher in the five states than
would be expected purely on the basis of population.
Ten leading States, All Other States, and United Stotes
(Amounts in millions of dO<llars )
CERTIFICATES OF NECESSITY APPROVED, RelATED TO POPULATION
Approximate
Area
amounl 1
OCTOBER 30, 1950·AUOUST 10, 1951
Percent of
U. S. total
Five Southwestern States and United States
TEN LEADING STATES
1 Pennsylvania . ••• . •. . ...•. .. .•..•.•..••..•••....
16.4
13.9
California • . •• . •• ••..•.• •• .....••......•• ••• •••
Illinois ••....•...••.. • . ••••. . .•••.••...••.•••••
Indiano •..••....•• ••.•••••• . .••.......•.• . ••••
louisiana •••...•••••• .. •••.•.•. . •••• . ........ ..
$1,093
926
627
513
372
293
291
263
258
201
Totol........... ........ ....... ... ........
All OTHER STATES .•............. . ............ ... . ...
UNITED STATES................................ ..... .
$4,837
$1,819
$6,656
72.7
27.3
100.0
2 lekos ••••••••••.•.•.••...•...••...• ... .••..•.
3 Ohio ••••••••...•• . ' •.•.. .. •••• .. ..• ....• •...•
" Michigan •••.••.. .• ..••.•••...•••.. .. ••••.•••••
5 Connedicut • •••• _•.• ••••• .. •.••••..• • ••••••••••
6 New york •••••...•• . ••••••. . ••••. . .•.•••••••••
7
8
9
10
9.'
77
...
5.6
4.4
4.0
3.9
3.0
I EIU:ludes urtiAcates which do not specify location by state.
SOURCEI O.f.nse Production Administration.
CER1.tFICATES OF NECESSITY APPROVED,
BY INDUSTRY,OCTOBER 30,1950. AUGUST 10,1951
f l .... E SOUTMWESTERN STATES·
SOURCE , Oel,,,,, P'odllclton Ad~lnl'I,al l on .
.. Ari IOf'o, LC'l i.iorHI,N.w Mt. l co,Oklo/l.c~D,ond Tno,
Among the industries reCelVtng certificates of necessity,
the steel industry accounts for nearly a third of the national
total; the chemical industry, nearly a tenth; the petroleum
industry, 7 percent; and the aluminum and other nonferrous
metals producing and fabricating industries, 6 percent. All
Area
Approximate
amount t
Population
1950
Amount
Percent of
per capito U. S. per capita
31,300,000
Arizona •• ..••.••.••••• $
louiuana ••••••••••••.•
201,000.000
3,300,000
New Mexico ••• ••• • ••••
31,400,000
Oklahomo •••••.•••.•.•
926,000,000
Texas ..•••••.•.••...•
749,587
2,683,516
681,187
2.233,351
7,711,194
$ 41 .75
74.90
4.8-4
14.05
120.08
95
170
11
32
272
Tolal ••....•.••.•••• $1,193,000,000
United States ••••••••.• $6,656,000,000
14,058,835
150,697,361
$ 84.85
$ -44.16
192
100
I Excludes ccrliAeale. which do not specify location by state.
SOURCES: Defense Production Administration.
Unit.d State. 8ureau of the Census.
As a result of accelerated amortization and other phases
of the defense program, both the Southwest and the Nation
are enjoy in g a large increase in the construction of indus·
trial facilities. The expenditures on new plant and equipment
by American business are expected to rise to a new peak in
]951 at about $24,000,000,000, or nearly 30 percent more
than in 1950, as well as 25 percent above the 1948 record .
Manufacturing will account for about half of the 1951 total
and will exceed the 1948 record by about 45 percent.
In Texas the value of construction contracts awarded for
manufacturing buildings rose sharply during the first 7
months of 1951, attaining a rate on an annual basis of ap·
proximately $163,000,000. This is 154 percent above the
previous ycar and only a third less than the volume during
the wartime pcak year 1942 and far exceeds that of any
other year, including 1946·47, the postwar boom years for
such construction, Even when allowance is made for the rise
of construction costs for manufacturing buildings to more
than double prewar, the 1951 volume stands out as the second
highest ever allained in the State and a fourth higher than
the previous postwar peak of 1946. These construction con·
tract figures cover only manufacturing buildings, but new
machinery and equipment for these buildings may cost about
as much as the buildings themselves, so that the total volume
of plant and equipment expenditures in the State during 1951
may rise to roughly $325,000,000. A higher total is possible,
MONTHLY BUSINESS REVIEW
122
since certificates of necessity approved in Texas already exceed 5900,000,000, but it is probable that many of these certificates and the resulting construction of new plants will be
carried over into 1952.
The large average size of the 126 new Texas facilities covered by certificates of necessity as of mid-July ranks the State
first in this respect among the 10 states having the larger
dollar amounts of applications approved. The Texas average
is $6,400,000 per certi ficate, compared with a national average of $2,800,000 for the 2,190 facilities for which location
is specifIed by state. However, several states receivin g relatively few certificates, chiefly for large mining or metals
projects, had somewhat higher average amounts than Texas_
The high average cost of plants in Texas rellects the high
The current defense construction program, to the extent
that it follows the pattern shown by certificates of necessity,
will contribute to the relatively more rapid industrialization
of the Southwest than the Nation. The five southwestern
states have about 3_5 percent of the ation's production
workers in manufacturing, with Texas having about 2 perce nt. But these five states have received certificates of necessity in amount about 4_5 times, and in Texas about 6.4 times,
as great as would be expected on the basis of the numbers
of production wor!:ers_ Arizona has received about 5_3 times
the certificates of necessity to be expected on the basis of
past manufacturing employment; Louisiana, about 1.9 times;
Oklahoma, about 1.3 times; and New Mexico, about 1.0
times. As during the period of World War II and the earl y
postwa r period, the Southwest continues the process of
CERTIFICATES OF NECESSITY APPROVED
OCTOBER 30,1950 - AUGUST 10,1951
ELEVENTH FEDERAL RESERVE DISTRICT
_
OVER
~ 100,000:000
. . $ 25,000,000 _
~ 1,000,000 -
D
UNDER
*
t 100,000,000
$25,000,000
1,000,000
SOURCE: Defense Production Admin istration.
proportion of petroleum, chemi cal, aluminum, and other
metals facilities. In Louisiana, which also received certificates
for large petroleum, chemical, and aluminum projects, the
average size was $4,400,000, or appreciably more than in
the Nation. In Arizona, New Mexico, and Oklahoma, the
projects averaged smaller than in the Nation; but for all
five southwestern states, the average cost of 196 new plants
was $5,000,000.
catching up with the Nation in manufacturing capacity and
output.
Within the Southwest, and more particularly in the Eleventh Federal Resen'e District, certain counties are receiving
a relatively large proportion of the new f aciJities. Harris
County, Texas, which ranks fifth among the Nation's metropolitan areas with respect to certificates received, has the
MONTHLY BUSINESS REVIEW
largest southwestern total reported, about 5l90,000,000, followed by such other Gulf Coast counties as Brazoria, Calhoun, Nueces, Jefferson, and Galveston, and Milam County
in the centra l part of Texas_ Petroleum refineries, chemical
plants, and metals plants account for a large part of the new
facilities on the Gulf Coast. The remaining counties with
important new facilities are more scattered but reflect chiefly
the availability of oil and gas for refineries and chemical
plants, copper ore and iron ore for smelters and mills, and
pulpwood for paper mills. This concentration of new faci lities in ce rtain counties reflects, in part, a tendency to locate
in or near the industrial centers of the area, although a considerable proportion of the new facilities are to he located
in smaller communities or even in what has been heretofore
open country_ Also reflected are such locational advantages
as availability of labor, economical water transportation, the
presence of related industries or plants, climate, sites for new
plants, and other factors.
The approximate costs of some of the larger plants in this
District for which certificates of necessity have been approved include the following:
Aluminum plants-Corpus Christi, Texas.. ____________________ $ 80,000,000
Port Lavaca, Tcxas.. ______________________ __ 34,000,000
Rockdale, Texas __________________ __________ __ 103,000,000
Chemical plantsHouston, Texas ______________________________ __
Houston, Texas ______________________________ __
Nederland, Texas __________________________ __
Sterlington, Louisiana __________________ __
44,000,000
10,400,000
11,140,000
20,458,000
Copper smelterBishee, Arizona ________ ____ _____________ .______
12,401,000
Petroleum refineriesBorger, Texas .. _ ___ .... __ .... __________ .___
...
.
EI Paso, Texas_ ____________ .. ____________ ... __
..
Houston, Texas ..__ .________ ._________ .___ .. __ .
Port Arthur, Texas ________ .______ ._____ ... __
Port Arthur, Texas _____ .__ ..... ___ ._____ .__ _
San Antonio, Texas_________ .. ________ .____ ._
Smith's Bluff, Texas_________ .. _____________ ._
15,416,000
10,264.,000
27,000,000
15,427,000
18,485,000
11,925,000
10,750,000
Power plantFreeport, Texas _ _____ .__ .__ .. ______________ ._
..
11,500,000
Steel millsLone Star, Texas ____________ _____________ __ __ _ 73,000,000
Houston, Texas _______________________________ _ 75,000,000
A 60-day moratorium on grants of rapid amortization
through certificates of necessity was announced by the Defense Production Administration in early Au gust. Only the
most urgent projects are now being approved, including
those needed to turn out finished military goods, expand raw
material output, or supplement vital projects already under
way. In addition, projects using relatively small amounts of
steel, copper, and aluminum may be approved, since one
reason for the moratorium is the need to hold down the use
123
of critical materials and achieve a reasonable balance hetween plant construction and materials supplies. The moratorium will not intcrfere with projects already granted certificates of necessi ty and, if anything, may aid them somewhat by easing the materials situation. Contributing to the
conservation of materials during substantially the same period of time, National Production Authority Order M-4.A imposes a moratorium on the starting of most large new construction projects between August 3 and October 1. This
order wiII delay many projects for which sufficient steel and
copper material s had not been assembled. The large number
of defense plant projects under way in the Southwest should
assure a continued high level of new plant construction in
the area during the moratorium and afterwards, when allotments of critical materials will be available for such construction.
The second largest source of federal aid for facility expansion is the Department of Defense program of military
contracts for a idin g production and procurement through
the expansion of both private and government facilities.
According to estimates, expansion under this program is expected to reach about 56,000,000,000 in the Nation- mostly
for machine tools, jigs and fixtures, and other items needed
to retool and re-equip present plants, hut with an appreciable
amount for new structures. The Southwest is receiving relatively less stimulus from this program than from the accelerated amortization program, since the area's expansion
represents chiefly new plants rather than added equipment
for existing plants. Of relatively greater significance to the
Southwest is the program for the encouragement of mineral
and other raw material output, under which, in the Nation,
51,426,000,000 has already been spent or committed. While
the geographical distribution of this amount is not available,
it is reasonable to assume that the Southwest, with its rich
and varied mineral resources, should share favorably in these
expenditures_ Besides accelerated tax amortization and direct
aids, there are several lending programs wbich assist defense
facilities expansion. Guaranteed loans to industry in the
Nation totaled S655,000,000 by July 16, 1951, with direct
DPA and RFC loans totaling an additional $213,000,000. In
most cases, the projects on which loans are made also receive
accelerated tax amortization benefits. The Southweit is sharing in both guaranteed and direct loans and has received
over one-third of the national total of the latter.
In terms of present and prospective contributions to industrial expansion in the Nation, a total of about $10,000,000,000 of facilities has been planned or encouraged, either
through commitments for direct construction or through certificates of necessity. Of this total, the Southwest has received
at least Sl,200,000,000 and perhaps as much as $1,500,000,000. It is estimated that in the Nation perhaps $8,000,000,000
more may be expected in the future, making a prospective
total of about $18,000,000,000.
Military and naval construction in the Southwest also is
expanding rapidl y_ The 1951 total for such construction will
amount to several times the 1950 figure_ Activity is increasing
at many of th e mili tary installations within the area, and
$250,000,000 in specific military construction projects in the
Southwestern Division of the Corps of Army Engineers were
authorized and planned during the fiscal year ended June 30,
MONTHLY BUSINESS REVIEW
124
1951. A military and naval construction bill now before Con.
gress includes appropriations for the fiscal year 1952 amount·
ing to $578,000,000 for the five southwestern states. The
$355,000,000 for Texas ranks the State second only to Cali·
fornia in the amount of these proposed expenditures.
ELEVENTH DISTRICT
Texas
Dallas· Fort Worth ................................$ 30,059,000
Other north Texas (Mineral Wells,
Sherman, Texarkana, and Wichita
Falls) ................................................ 48,479,000
South Texas (Beeville, Harlingen,
Houston , Kingsville, Laredo, and
Victoria ) .......................................... 44,018,000
EI Paso ................................................ 29,593,000
Other west Texas (Amari llo, Big
Spring, Del Rio, and Lubbock)...... 31,615,000
Northcentral Texas (Brownwood, Bry·
an, Killeen, and Waco) .................... 40,185,000
San Antonio ........................................ 108,864,000
Other southcentral Texas (Austin,
Bastrop, and San Marcos) .............. 22,453,000
Total, Texas .......................... $355,266,000
Other states
Nortbern Louisiana (Shreveport) ......
Southern New Mexico (Alamogordo,
Clovis, Roswell, and White Sands)
Southern Arizona (Fort Huachuca
and Tucson) ....................................
18,331,000
39,166,000
That the defense program has had a significant impact
upon the economy of the Southwest is indicated by numerous
business indexes, most of which have recently been at or
near record levels. The income of this District during the
first half of 1951 is estimated at about ·15 percent higher
than during the first half of 1950. Bank debits in 24 cities
in this District were up 10 percent from a year .before. Non·
farm employment in Texas in June was 7 percent above a
year earlier, with manufacturing employment increasing 15
percent. Crude oil production in the District in June was up
20 percent, while construction contract awards in the Dis·
trict durin g the first half of 1951 were up 53 percent from
the like period of 1950. Activity in Texas cotton textile mills
during the first 6 months of 1951 was 19 percent higher than
durin g the corresponding months of the previous season,
while cement production was up 7 percent. The output of
synthetic rubber, magnesium, and carbon black increased
substantially. While only part of these gains directly reflect
defense expenditures, a considerable stimulus has resulted
indirectly from the expansive effects of the defense program
upon general business activity.
19,704,000
Total, Eleventh District........$432,467,000
OUTSIDE ELEVENTH DISTRICT
Southern Loui si ana (Alexandria,
Baton Rou ge, Camp Polk, Lake
Charles, and New Orleans ) ..............
Northern New Mexico (Albuquerque
and Gallup) ....................................
Northern and central Arizona (Chan·
dler, Navajo, Phoenix, and Yuma)
Oklahoma (Altus, Ardmore, Enid,
Lawton, McAlester, Muskogee, and
Oklahoma City) ..............................
$87,000,000. However, such figures appteciably understate
the southwestern total as they do not include small contracts
and subcontracts, both of which are especially important in
this area. Manufacturers located in at least 20 Texas cities,
and probably many more, have received such contracts,
which provide for the production of aircraft and aircraft
parts, barges and boats, trailers, tractors, clothing, bedding,
safelY belts, sugar and rice and other food products, aviation
gasoline, fuel oil and other petroleum products, and nu·
merous other items.
22,380,000
12,535,000
11,171,000
99,666,000
Total, outside Eleventh
District ..............................$145,752,000
TOTAL, FIVE SOUTHWESTERN
STATES ...................................... $578,219,000
Military prime con tracts reported during the first II
months of the defense program, July 1950·May 1951,
amounted to $493,000,000 in Texas and $757,000,000 in the
five southwestern states. Texas had 2.4 percent, and the five
states, 3.6 percent, of the national total. These figures, though
relatively small, are in line with the present manufacturing
capacity of the area. Texas ranks twelfth among the states
but is second to California in petroleum contracts, with
The outlook for defense plant and military and naval con·
struction in the Southwest is clearly favorable, with the
prospect that regardless of changes in international tensions
such construction will continue at a high level well into 1952.
However, as the emphasis shifts from plants producing basic
industrial materials to plants producing finished or semi.
finished products, the Southwest may receive a somewhat
smaller share of the national total of new industrial facili·
ties. Nevertheless, the increasing advantages of ·manufactur·
ing such finished defense goods as aircraft, boats, bedding,
and uniforms within the area will act as stimulating factors
ill both defense production and defense plant construction. .
Whether or not the defense construction boom in the
Southwest eventually equals or exceeds that of 1941·43 de·
pends largely upon the duration and magnitude of interna·
tional tensions. In any case, the construction of new indus·
trial facilities in large numbers is again making an important
contribution to the economic development of the area, per·
mitting an accelerated realization of the economic possibili.
ties of the Southwest based on its wealth of resources, grow.
ing markets, increasing and more skilled labor force, and
other advantages. Both the construction of these new plants
and the large expenditures for military procurement and
military installations are appreciably stimulating the income,
employment, production, and general economic growth of tbe
area. Thus, the defense program is teaming up with the basic
economic advantages of the area to induce another period of
substantial expansion in the southwestern economy.
~
MONTHLY BUSINESS REVIEW
125
REVIEW OF BUSINESS, INDUSTRIAL, AGRICULTURAL, AND FINANCIAL CONDITIONS
Consumer buying in the Eleventh Federal Reserve District was stimulated moderatel y in July and early August by inventory clearance sales and spccial promotions_ Department store sales showed a less-than-seasonal
decline from June, although they fell sharply below the extremely hi gh level of a year ago, when war-scare buying was
at its peak_ Department store stocks registered a further small
decline for the third consecutive month but on July 31 were
still 30 percent higher than a year earlier_
Sales at district department stores, after allowance for normal seasonal variation, have shown a slightly rising trend
since April. This trend undoubtedly reRects the gradual increase in consumer incomes as employment in defense and
related industries has continued to rise. Moreover, price reductions and special promotions have been important in bolstering sales. Nevertheless, the resistance of the consumer to
WHOLESALE TRADE STATISTICS
Eleventh Federal Reserve District
{Percentage change}
Nonfarm employment in Texas continued to rise under the
impetus of expanded activity in defense and related industries_ Crude oil production and refining activity in the District reached new record highs in August, and further increases are indicatcd for September. While the continued
upward trend in crude and product stocks normally would
call for a curtailment of production, a high level of stocks is
now desirable in view of the unsettled Iranian situation_ Construction contract awards in Iuly continued in heavy volume,
but the total value of awards was only slightly higher than
either the previous month or a year earlier, in contrast with
the large year-to-year gains prevailing in the earlier months of
this year. Public housing and military projects wer~ important factors buoyin g construetioll awards.
Agricultural prospects in the District were lowered substantiall y during July and August by hot, dry weather which
caused a deterioration in most crops, as well as in pastures
and ranges. While the cotton crop is expected to be considerably larger than the small 1950 crop, production of practi call y every other major crop of the District will show a
decline from last year. Farm prices have continued to decline
and are now about 15 percent below the peak level of last
April.
Loan s at weekly reporting member banks showed a further moderate decline during the 5 weeks ended August 15,
due largely to a reduction in loans to trade and some types
of manufacturing establishments. On the other hand, investments, as well as deposits, rose noticeably.
Department store sales in the Eleventh
Federal Reserve District made a very
creditable showing in Iuly and early August, as clearance sales and special promotions spurred consumer buying. The 8-percent decline in
sales from June to July was somewhat less than usually occurs at that time of year. :Moreover, althongh July sales were
20 percent below the extremely high war-scare innated volume of July a year ago, they were substantially higher than
in any other July on record, being 10 percent higher than in
July 1949 and 3 percent higher than in July 1948_ The district sales picture conformed generally to that of the Nation.
Cumulative sales at district department stores for the firsl 7
months of this year were about 4. percent higher than the
corresponding period last year.
NET SALESp
STOCKS'p
July 1951 hom
July 1951 from
July
1950
Industrial supplies .•... ......
Machinery equipment and supplies eKeepl electrical ... . .
Metals . ........ ...........
Tobacco products .... . ... .. .
1951
1
- 19
12
6
-12
24
1
5
-
6
1
2
16
42
-
34
37
3
3
21
Hardware .. ........ .. .. ...
July
1950
- 2
-36
Grocery (voh.lnfe ry-group and
furl-line wholesalers not
sponsoring groups)......
7 mo. 1951
compo with
7 mo. 1950
-
Automotive supplies .........
Drugs and sundries ..• .......
Ory goods •..•. . ...........
June
1951
-48
8
-29
line of trade
-
7
-13
9
3
13
1
32
Wines and liquon ....... ...
Wiring supplies, construction
materials distributors .... . .
J"".
-IS
1
18
37
35
,
-I
I
7
25
13
2
2
1
-20
8
56
1
-10
-
3
Stocks at end of month.
p-Preliminary.
i Indicates change of less than one-half af I percent.
I
SOURCE: United Stales Bureau of Census.
RETAIL TRADE STATISTICS
(Percentage change!)
NET SALES
STOCKS'
Juty 1951 from
line of trade
July
by area
1950
DEPARTMENT STORES
Total Eleventh Distrid .•...• , •..• • .•
Corpus Christi ........... . , .... •.•
Dallas .........•.•...........•.•
EI Paro •.. , .. .. , ..... , ..•.... , ..
Fort Worth., .......•..•.•....••.
Houston ••..........•....•..•... •
Son Antonio ..•.•....... , ..•• • •. .
Shreveport, la .•.............. •. .•
Other cities . ••... • , .•. . ••• •. •• •••
-20
-26
-22
-18
-23
-11
-22
-17
-26
FURNITURE STORES
Total Eleventn Oislrid •..........•..
Au~tin ....• • .................••.
Dallas, ....... • ....•....•....•.•
Houston .................•....•.•
Port Arthur . • .......•....•.......
Son Antonio •.• ... . .........••. . •
Sllreveport. La ... ...... .. ...... .• .
Widlita Falls ..•• .................
-29
-43
-36
-33
-2 5
-13
-10
-27
HOUSEHOLD APPLIANCE STORES
Total El eventn District ...... , .......
Dallas . . ... , •...... ,. , .. " ... , . .
-5-1
-48
June
1951
JlIIy 1951 from
7 mo. 1951
camp. with
7 mo. 1950
- 8
-20
- 6
-21
- 9
- 2
- 10
July
1950
June
1951
I
30
21
29
-
1
2
15
25
43
31
-
5
4
3
3
2
-
- 11
-10
I
3
2
I
I
#
13
4
- 21
11
- 59
33
25
-16
23
3
3
5
9
3
-21
17
33
-
,
-
5
7
1
14
1 Stocks at end of month.
I Indicates change of less Inon one·ha lf of I perc:ent.
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
11935-39 ~ 100)
ADJUSTED l
UNADJUSTED
July
June
Moy
Area
1951
1951
1951
SALES-Daily average
Eleventh District ...• ... , , ...
Dallas, ... .. , ....... " ... .
HollSton .. , ..... , ...... ... •
339
288
415
352
291
409
393
351
441
429
367
503
STOCKS-End of month
Eleventh District ..... . ......
454
445
486
351
I Adiusted for seasonal variation.
July
Juno
Moy
July
1950 1951
1951
1951
1950
409
354
470
405
374
459
537
510
621
July
423
400
513
483
473
486
374
126
MONTHLY BUSINESS REVIEW
high prices continues. The tendency of the consumer to
spend a smaller proportion of his income and save a larger
proportion, which developed soon after the buying spree in
the early weeks of this year, has shown no indication of
changing during recent months.
Merchants' efT orts to reduce inventories continued during
July, with department store stocks down 1 percent to mark
the third successive monthly decline. At the end of tbe month,
however, stocks were 30 percent higber than on the corresponding date of the previous year. Although the ordering of
fall and Quistmas merchandise raised orders outstanding 24
percent during the month, merchants' buying policies remained conservative and orders outstanding on July 31 were
34 percent below a year earlier.
The sales performance of the individual departments in
July showed a varied pattern. Sales of women's and misses'
dresses were 17 percent higher than a year earlier and men's
clothing sales were 4 percent higher, with earlier-than-usual
summer clearances boosting the sales of both departments.
On the other hand, sales of women's accessories were down
17 percent from a year ago, when scare buying of nylon
stockings pushed sales of this department to a very hi gh
level. Women's and misses' coat and suit sales also were
sharply below July a year ago.
Consumer durable goods departments, which had experienced the largest increases during the post-Korean scare
buying, showed some of the sharpest declines in July from
a year earlier. Major appliance sales were down 71 percent;
domestic floor coverings, down 24 percent; television and
radio, down 35 percent; and furniture, down 16 pcrcent. On
the other hand, furniture sales were much higher than in
either July 194-8 or July 1949 and were the highest for any
month this year since January.
Although casb and charge account sales declined from
June to July, instalment sales showed a marked increase, to
reverse - at least temporarily - the almost uninterrupted
downward trend of the previous 6 months. Moreover, instalment sales in July comprised 10 percent of total department
store sales, which is the highest percentage they have constituted since January. Meanwhile, charge account sales were
only 58 percent of total sales, the smallest proportion in the
past 10 months_The proportion of cash sales has shown little
change in recent months, and in July, was 32 percent of
total sales. Both charge account and instalment account receivables declined noticeably in July, with charge account
receivables at the end of the month 5 percent higher than a
year earlier but instalmen t account receivables 22 percent
lower than on the same date last year.
In accordance with provisions of the Defense Production
Act of 1951, the Board of Governors of the Federal Reserve
System liberalized instalment credit controls, efTective July
31. While it is too early to judge the effect of the easing in
instalment credit terms, preliminary reports indicate that this
action thus far has bad no substantial influence. Credit controls undoubtedly have been one factor holding down instalment sales, but other factors, such as a reaction to the advance buyin g following the initiation of Korean hostilities,
the elimination of deferrcd demand, and a change in COIIsumer buying psychology, have been perhaps equally or morc
important.
Sales at district furniture stores, bolstered by widespread
markdowns and special promotions, showed a l.percent contraseasonal increase from June to July_ Cash sales were up
11 percent, but credit salcs declined slightly. July sales, however, were 29 percent lower than a year ago, when war-scare
buying was strong. Accounts receivable outstanding regis·
tered a further small decline and at the end of July were 11
percent lower than a year earlier. Moreover, the downward
adjustment in furniture store inventories continued for the
third consecutive month, with end-of-month stocks down 3
percent from a month previous. However, inventories were
still 33 percent higher than a year ago.
Districl crops and grazing lands suffered substantial ,Ieterioration during
August under the comhined effects of
drought and extremely high temperatures. While beneficial rains were received in some areas in
recent weeks, earlier expeclations of record crop production
this year seem to have faded away, as reports from many
parts of the District indicate that harvests of mature crops
are falling markedly under June and July forecasts. Crops
most seriously affected by the August moisture shortage and
heat include cotton, corn, grain sorghums, peanuts, hay,
sweet potatoes, and commercial vegetables. Prospects for
yields per acre were average or better for most crops as late
as August 1 but are now expected to be below average, as
crops in many sections are too far advanced to bc benefiled
greatly should rains come.
The United States colton crop was estimated by the De·
partment of Agriculture on August 1 at 17,266,000 bales, or
72 perccnt above last year's harvest. Production in the five
NORTHERN
,HIGH PLAINS
l-N
CROP REPORTING
DISTRICTS OF TEXAS
MONTHLY BUSINESS REVIEW
states lying wholly or partly within the Eleventh District,
forccast on August 1 at 7,675,000 hales, will fall considerably below August estimates. This is particularly true of
Texas, where profluction is almost certain to be under the
forecast of 5,000,000 bales. Virtually all nonirrigated cotton
in the State has been affected by the hot, dry weather. Fruiting and development were checked, and small bolls opened
rapidly and prematurely over a wide area in southern, cenIral, and northern counties of the State. On the other hand,
i rri galed cotton in the District developed and fruited satisfactorily during August, although bollworms were reported
in most irrigated areas.
COTTON PRODUCTION
Texas Crop Reporting Districts
tin thousands of boles-SOO lb. gron wt.)
1951
Crop reporting district
'·N
1949
1950
Indicated
August 1
1951
as percent of
1949
1950
Southern Texc;u Proirie, ••
Cocutol Prgiries ••.•...•
South Texos Plainl •.••••
259
1,571
1,119
61
1,059
350
190
88
505
212
626
89
722
548
16
557
121
143
48
230
121
351
325
1,200
840
65
850
225
245
45
280
210
715
125
76
75
107
80
64
129
51
55
99
114
365
166
153
406
153
186
171
94
122
174
204
Stal ••••. ••• ••••••. •
6,040
2,946
5,000
83
170
Northern High Plains .•••
1·S Southern High P1oins • ••••
2
Red Bed Plains •••••.•••
We,tem Cross Timbers ••.
3
4
5
6
7
8
9
10
Slack and Grand Prairies.
EostTexasTimbered Plain'
Trans·Pecos •••.• . • ' •• ' •
Edwards PlateQu •••••••
SOURCE: United States Department of Agriculture.
Corn production in the District was cut sharply, as the
.J uly and August drought was particularly injurious to lateplanted acreage. Production in the 5-state area may fall short
of the 91,465,000 bushels forecast a month ago. The August
production estimate for Texas was lowered 6,000,000 bushels
from the July estimate, and the forecast of 44,612,000 bushels probably will not be realized. Corn harvest was virtually
completed in southern counties of the District during August
and is well along in other parts of the area.
127
85,000,000 bushels, down 43 percent due to smaller acreage
and reduced yields in droughty producing areas in the south·
ern part of the State. Showers during August improved sorghum grain prospects in local areas on the High Plains just
as the crop was beginning to head, but a general rain is still
needed.
Production estimates for other major field crops in the
District are presentcd in an accompanying table, which shows
smaller crops of rice, peanuts, wheat, oats, flaxseed, barley, hay, and potatoes harvested or in prospect this year.
Droughty conditions and extremely cold weather caused
heavy losses of winter grains; smaller acreages and unfavorable weather curtailed production of flaxseed and potatoes.
Production of commercial vegetables in the District this
year will fall well below the output of 1950. Droughty conditions in many of the truck crop producing areas accounted
for the dcclinc, causing both smaller acreages and lower
yields. Seedbed planting and preparation for winter vege·
table planting in the Lower Valley continued inactive through
August because of the limited supply of water for irrigation_
Range and pasture feed deteriorated rapidly over most of
the District during July and August and is in the poorest
condition for this season since the severe drought of 1934.
The deterioration in range and pasture feed is reflected in
the condition of livestock, which are shrinking in many areas.
Cattle are holding up fairly well in some of the more favored
areas, but in other sections cows are showing heavy shrinkage and calves have not developed as expected. Ewes and
lambs are in the poorest condition of record for thi s season
of the year, with the exception of 1934.
LIVESTOCK RECEIPTS
(Number)
FORT WORTH MARKET
Clau
Cattle ••••••••••
Calvel ••••••••••
Hogs •••••••••••
Sheep • • • •••••••
CROP PRODUCTION
Texas and Five Southwestern Stotes
(In thousond, of bushels)
/t$1
July
1950
68,290
40,466
.2,484
82,389
52,971
18,309
35,.95
82,029
SAN ANTONIO MARKET
J"".
June
1951
July
1951
itlo
1951
32,230
16,040
401,633
128,059
28,814
27,655
6,623
'22,574
28,212
14,835
5,096
118,327
12,594
12,193
4,997
120,1.040
1 Indudes goofs.
Texas
Crop
COHon l •••.•••••
Com .•...•.• . .•
Winter wheat .. .•
Oats •.•..••....
Borley ••.•••.. .•
Rye •• •••••••.••
Rice' •.•.•.. . .••
Sorgnum grain •••
Flox.eed •••••••.
Hay' .••••.•••• •
Peanuts s •••.•...
Irbn potatoes .•••
Sweet potatoes •••
Five sovthwe,tem sto'e,1
Average
19.4.0-.49
1950
EsHmof.d
August 1,
1951
Average
1940·49
1950
Estimated
Augvs'l,
1951
3,049
62,517
63,486
30,912
.4,010
209
8,2 6.4
69,694
625
1,437
303,934
4,648
5,378
2,946
65,730
22,712
27,027
1,729
196
11,544
148,BI8
1,266
1,281
323,400
2,752
5,130
5,000
44.612
17,325
7.756
636
105
11,319
85,068
6.
1,092
233,000
2,328
2,295
.4,0460
112,462
141,926
60,6042
12,553
984
18,264
84,067
1.256
4,624
413,641
9,996
14,730
4,275
119,183
67,6043
44,703
10,327
558
22,035
180.886
1.540
4,770
456.245
6,952
'5,870
7,675
91,465
59,100
20,411
5,872
576
22,561
108,54'
204
4,.426
372.795
5.819
8,255
I AriJ:ono, Louisiana, New Mexico. Oklahoma. and Te"al,
, In thousand. of boles •
• In thoVlands of bogs, 100 povnds each.
4 In thousands of tons.
• In thousands of po ..... ds.
SOURCE.: United States Deportment of Agriculture.
Sorghum grain production in the District, curtailed this
year in favor of more acreage to cotton, is forecast at 108,000,000 bushels, compared with a record 181,000,000 bushels harvested in 1950. The Texas crop is expected to total
Because of the shortage of range and pasture feed, tbe
seasonal rise in livestock marketings usually expected at this
time of the year began early. Receipts of livestock at the
Fort Wortb and San Antonio markets in July totaled 18 percent above June and 25 percent above July 1950. As compared with a year earlier, July receipts of cattle were up 19
percent; calves, up 106 percent; hogs, higher by 21 percent;
and sheep and lambs, up 5 percent. Weekly marketings of
livestock during August contihued to run substantially above
rece ipts during comparable weeks of last year_
The drought also had an adverse effect upon the district
lamb crop this year. Texas reported only 2,885,000 lambs
saved, or 16 percent less than in 1950 and 31 percent below
the 1940-49 average_ The number of lambs saved is equivalent to 64 percent of the breeding ewes on hand January
1, compared with last year's record high of 79 percent. Lack
of green feed throughout the winter and early spring season
128
MONTHLY BUSINESS REVIEW
cut heavily into the 1951 lamb crop, causing unusually higb
losses. The lamb crop is smaller also in New Mexico and Ari·
zona, although slightly larger in Oklahoma and Louisiana.
CASH RECEIPTS FROM FARM MARKETINGS
(In thousands of dollars)
Cumulative receipts
January-May
May
(In tholnonds of polmd s)
1951 as
Average
percent of
Stote
1940·49
1950
1951p
Ari:.:ona • •••...• ••.• • •.••••. •
louhia na .•.... ........ ..•.. .
New Mexico •.. .. .•.••..•••..
3,622
644
13.953
Oklahoma ••• .•. .•. ..•. . .••. •
fexClJ ••••• •••• •• •• •••. • ••• •
1,835
71,064
2,651
405
10,626
927
52,686
2,402
403
10,531
972
51,943
66
63
75
53
73
Total .....•...........• .
91,118
67,295
66,251
73
average
p-Preliminory.
SOURCE:United States Depo rtm en t of Agriculture.
The Texas wool clip shorn and to be shorn in 1951, esti·
mated at 51,943,000 pounds, is 1 percent below last year's clip
and 27 percent below average. Lighter average weight per
fleece for this spring was the principal factor ofTsetting an
increase in number of sheep shorn. Declines in wool produc·
tion also occurred in the other states of the District except
Oklahoma, which reports an increase of 5 percen t. Produc·
tion in the five states of the District is expected to total 66,·
000,000 pounds, or only 73 percent as much as the 10·year
average.
Production of poultry in the District this year will greatly
exceed that of 1950. In Texas, the placement of broiler chicks
on farms in the first 7 months of 1951 totaled 36,000,000,
compared with 22,000,000 in the corresponding months of
1950. This increase will more than offset any reducti on that
may occur in the output of farm chickens. Egg production in
1951 may be down sl ightly, due to the reduced numbers of
hens in la yin g flo cks. Egg production in the five states of the
District durin g the first 7 months totaled 4 percent less than
in the same period last year.
FARM COMMODITY PRiCeS
Top Price. Paid in local Southwest Markets
Commodity and marke'
COTTON, Middling 15 / 16-inch, DaUos, •.
WHEAT, No.1 hard, Fort Worth • • ••. ...
OATS, No.2 white, Fort Worth .•..•••.•
CORN, No.2 yenow, Fort Worth ••••.. .
SORGHUMS, No.2 yellow milo, For' Wor,h
HOGS, Choice, Fort Worth .•••. ... ... .
SLAUGHTER STEERS. Choice, fort Worth
SLAUGHTER CALVES, Choice, Fort Worth
STOCKER STEERS. Choice, Fori Worth ...
FEEDER LAMBS, Fort Worth .••• .... ....
HENS, 3· 4 pounds, Dallas ....... ••. .. •
FRYERS, local, 001101 • .•••• ••••••. ••.•
TURKEYS, No. 1 hens, Dallas •.• .... ...•
EGGS, No. 1 infertile. Dallal •• •......•
Unit
lb.
b,
b,.
Week ended
Aug. 23,1951
$
.3"'90
1.07Y,
2.03
2.50
22.75
36.00
35.50
36.00
30.00
<"".
lb.
lb.
lb,
dOl .
.3715
1.03V2
<wt.
cwt.
cwl.
cwt.
$
2.550/4
2.00
2.52
.1 6
.27
.35
.50
195 1
1950
Ari zona ..... . .. .... . ....... .
Louisiana .... .. ... ... ....... .
New Mexico .........•.. . ....
Oklahoma •..........• . ..... .
Texas . ..............•......
$ 18,277
S 18,965
12,076
17,668
26,473
141,944
12,907
14,864
34,437
137,057
113,900
90,288
63,801
162,925
609,756
Total .. .. ... . ............ .
$216,438
$2 18,230
$1,040,670
1950
$
90,824
79,459
53,557
182,845
641,233
$1,047,918
SOURCE: United Slates Department of Agriculture.
Cash farm income in the five states of the District during
the first 7 months of 1951 about eq ualed the $1,500,000,000
received during the same period last year, as generally higher
prices for many commodities offset declines in marketings of
commercial vegetables, citrus fru its, flaxseed, wheat, oats,
wool, late 1950·crop cotton , and other commodities usuall y
sold in volume during the first part of the year.
Cash receipts from marketings of livestock and livestock
products in the 5-state area through July totaled slightly
ahove 81,000,000,000, up 30 percent from a year ago. Larger
incomes were received from meat animals, dairy produ cts,
poultry, eggs, and woo\. On the other hand, cash income from
sale of crops, totaling $420,000,000 for the first 7 months of
1951 , was down 37 percent. In come from virtually all crops
usuall y sold dur in g these months was lower, reflectin g the
effects of winter freezes and droughty conditions over much
of the District.
The lowered estimates of cro p production given prcviously
and the declines in pri ces of many important farm crops in
recent months leave little doubt that cash farm income in
district states for the calendar year 1951 will be lower than
had been expected and possibly lo wer than in 1950. Income
from livestock and livestock products, prices of which aver·
age about 15 percent above a yea r ago, will exceed the $],.
539,000,000 received in 1950 by more than $100,000,000;
income from crops may show a decline from the $1,975,000,·
000 received last year.
Comparable Comparabl e
week
week
last month
last year
2.60~
b,.
cwt.
1951
Slate
SHORN WOOL PRODUCTION
23.00
36.00
35.00
3.5.00
29.00
.18
.27
.35
.45
.3775
2.45
.94 'A
1.66V2
2.20
24.50
2 8.50
22 .50
30.00
.15
.30
.30
.3 6
The general level of farm prices in the District has been
drifting downward since April and appears to be continuing
in that direction. The mid.July index of farm prices in Texas
was down to 351, compared with the April 15 peak of 399.
Reports from spot commodity markets during August show
further declines in prices of cotton, wool, rice, barley, oats,
corn, and lambs. On the other hand, there were slight ad·
vances in prices of eggs and wheat.
Between July 11 and August 15, loans
of the weekly reporting member banks
in leading ci ties of the District declined,
continuing the gradual downward trend
from the record total reported at the end of January. Most
other major assets and li abi liti es, including investmcnts, dc·
posits and cash assets, rose uuring the 5 weeks,
Commercial, industrial, and agricultural loans declined
during the 5·week period by $12,034,,000, Important in the
decline was the rather large amount of liquidation of out·
standing bank indebtedness by wholesale and retai l trade es·
tablishments and manufacturers of petroleum, coal, chem·
ical and rubber products. Construction firms and sales finance
companies also reduced the amount of their outstanding bank
borrowings. In contrast with other recent weeks and reflect·
ing the beginning of the 1951 cotton marketing season, loans
to cotton commodity dealers rose. Real estate loans and the
MONTHLY BUSINESS REVIEW
category compnsmg consumer loans also showed decreases
during the 5 weeks. Largely as a consequence of these de.
velopments, total loans were $11,238,000 lower on August 15
than on July 11.
129
762,000, an increase of about 5 percent over the year· earlier
total.
GROSS DEMAND AND TIME DEPOSITS Of MEMBER BANKS
Eleventh Federal Reserve District
Between January 31, which marked the all· time record
high for loans at the weekly reporting m~mbcr banks, and
August 15, the over·all decrease in loan s amounted to $65,·
284,000. Althougb seasonal contraction normally is expected
during the spring and early summer months, the liquidation
this year was not general at all weekly reporting cities. For
example, the weekly reporting member banks in Dallas ac·
counted for 55 percent of the total decrease; Houston banks,
31 percent ; and El Paso banks, 14 percent. On the other
hand , reporting banks in Austin, Fort Worth, and San An·
tonio showed increases within the range of 1 to 3 percent.
Holdings of Governments at the weekly reportin g member
banks increased during the 5 weeks ended August 15. Invest·
ments in Treasury bills rose $44,755,000, while holdings of
bonds showed an increase of $4,563,000. Reflecting largely
Treasury refunding operations On August 1, investments in
certificates of indebtedness rose $29,446,000, while note hold·
ings decreased $34,727,000. On August 15, investments in
Government securities amounted to $1,063,544,000, a de·
crease of $132,366,000 from the year·earlier total.
(AYerages of doily flgures. In thousands of dollars)
COMBINED TOTAL
Gross
demand
Date
July 19.49 •••• _••
July 1950 •••• _••
March 1951 • .. .•
April 1951 . , . . .•
May 1951 ••.•.•
June 1951 •••.••
July 1951 .. •• • .•
RESERVE CITY BANKS
Gross
demand
Time
COUNTRY BANKS
Gross
demand
Time
Time
$4,977,743 $629,655 52.417,780 $402,930 S2,559,963 $226,725
5,640.371 660,748 2,757,150 416,753 2,883,221 243,995
5,991.439 644,378 2.777,533 353,077 3,213,906 291,301
5,90B,685 647,902 2,751,029 353,798 3,157,656 294,104
5,801,415 658,973 2,697.033 362,380 3,104,382 296,593
2,720,158 374,734 3,100,151 295,057
5,820,309 669,791
5,855,513 673,533 2,746,696 376,455 3,108,817 297,078
Gross demand deposits of all member banks in the Dis·
trict averaged $35,204,000 higher in July than in June, mark·
ing the second consecutive monthly increase. The July in·
crease was largely concentrated at reserve city banks, which
accounted for three·fourths of the total. Time deposits increased $3,74,2,000, continuing the upward trend that has pre·
vailed since March. Somewhat more than half of the increase
was accounted for by country banks. During July, total time
deposils averaged $673,533,000.
BANK DEBITS, END-Of· MONTH DEPOSITS,
AND ANNUAL RATE OF TURNOVER OF DEPOSITS
(Amounts In thousands of dollars)
DEBITS I
CONDITION STATISTICS OF WEEKLY REPORTING
MEMBER BANKS IN LEADING CITIES
Eleventh Federal Reserve District
(In thousands of dollors)
August 1 S,
Item
City
Augus' 16,
1950
July 11.
1951
$2,615,704
1,262,328
1,276,289
$2,634,526
1,432,226
1,449,105
971,391
9,208
861,037
6,498
983,"25
8,447
59,381
120,097
2.768
275.022
1,238,600
158,293
114,021
2 16,819
56,957
107,128
200
244,.69
1,339,415
93,918
121 ,788
295,423
57,592
121,509
1,215
276,917
1,185,421
113,538
84,575
251,546
574,411
175,056
549,793
398,895
2,208,787
433,727
85,426
702,871
0
684,781
143,505
.67,592
340,277
2,095,209
442,978
68,475
651,233
200
569,848
165,914
537, 178
340,160
2,145,128
440,820
98,656
6'0,114
0
1951
Tololloo", (gron) cnd investments ..••••••.•• $2.676,467
Totalloons-Ne,l •••....................
1,421,777
Tolal loans-Gron .•............... .. ... 1,437,867
Commercial, induttricl, and agricultural
loans ..•... ••.. .••...••. ... . .. ..••
Loans to brokers and dealers in securities ..
Other loans for purchasing or carrying
securities .. • . ••. .. ••.•.•.•.••....••
Real estate loans •.•.•...•••...•....•.
loans to bonks .•••. •••.. . •.•.•••...••
AU other loons .•. . •....•. . •.•....•.••
Tolal inyestments ••• •• •••.• .•••.•• ...•• •
U. S. Treasury bills • . .•. ••••.•. .•...•••
U. S. Treasury certificates of indebtedneu.
U. S. TreaslKY nares •.•••..••.•.•....••
U. S. Government bonds (inc. gtd.
obligations) •••••••••.• •• •.•.••••••
Other securities •••••••••••••••.•...•••
Reserves with Federal Reserve Bank ..•... ••••
Balances with domestic banks ..• ••••••.. . . ••
Demond deposits-ad justed) ........... . . ...
TIme deposits except Goyernment .•••• . ••••••
United States Government deposits ••••••...••
Interbank demand deposits ••.•.••. .•• • . .•••
Borrowings from Federal ReserYe Bank ••.•••••
DEPOSITS'
Percentage
change from
I After deductions for reserYes ond unoUocoled charge-offs.
2 Includes all demand d e posits other than interbank and United States GoYernment, leu
cosh items reported as on hand or in process of colleclion.
The trend of deposits during the 5 weeks at these selected
banks in leading cities of the District was upward, due to an
expansion of $62,757,000 in interbank demand deposits and
the usual midmonth, sharp increase in demand deposits of
individuals, partnerships, and corporations. The latter
showed an increase of $116,449,000, most of which occurred
in the week ended August 15, a pay·roll date for many busi·
ness and industrial firms. United States Government deposits
and deposits of states and their political subdivisions declined
$28,694,000. On August IS, deposits amounted to $3,700,-
July
1951
ARIZONA
Tucson .............. $
75,292
26
LOUISIANA
Monroe •• •••••••••••
40,679
1
162,701
11
Shreveport •• • •••••••
NEW MEXICO
RosweU •••••••••••••
19,109
8
TEXAS
Abilene •• • ••••••••••
47;767
I
Amarillo •• • •.••••• ••
114,803
9
Austin .... ...... .. ... .
115,566 - 1
114,302
13
Beaumont • • •••••••••
114,562
5
Corpus Christi ••••••••
Corsicana •.•••••••••
12,033
7
1,241,951 - 7
Dallas .•••. • •• . •••••
155,004
S Paso •••••••••••••
6
435,428
13
Fort Worth •.• .. •••••
6
Golveston • • •.•••••.•
75,044
12
Houston •• . •.•..•••• • 1,356,904
19,961
17
laredo •••••••• • ••• •
79,931
lubbock •••••••• .•.•
#
Port Arthur ••••••.•••
39,915
26
35,640 - 8
Son Angelo •••. • •••.•
337,458
4
San Antonio • . •••••••
18,718
6
Texarkana ' •••.. . • •••
48,859
Tyler .••• . ••••••••••
2
Waco • • .•••••...•• ,
60,009
#
75,346
14
Wichita Falls • . ••.••• •
Total-24 cities •••••••• $4,796,982
Annual role of turnoyer
July June
1950 1951
4
July 31,
1951
$
July
1951
July June
1950 1951
92,931
9.7
8.5
10. 4
6
6
45,42 1
184,429
10.7
10.6
10.6
9.8
11.5
11.2
-11
23,778
9.6
9.4
10.8
-1
52,454
99,157
108,938
89,770
92,351
21,583
920,821
130,437
352,309
99,367
1,063,183
21,005
88,320
44.303
50,194
371,389
23;772
50,848
78,.484
102,85B
11.2
14.0
12.7
15.4
15.0
6.8
16.1
14.3
14.9
9.1
15.2
11.8
10.7
11.5
8.5
11.0
9.'
11..4
9.1
8.9
11.9
13.3
12.4
13.4
14.4
6.7
18.5
13.6
14.3
8.9
14.5
9.0
11.5
9.7
9.6
10.9
9.4
11.0
9.4
8.5
11.5
14.8
14.6
16.0
15.2
7.0
17.2
15.1
15.7
9.2
16.0
11.8
10.8
13.1
10.7
12.5
8.9
11.6
10.2
9.6
$4,208,102
13.7
13.8
14.5
-
-
8
4
-14
3
3
1
5
6
6
-2
- 5
-1
- 2
- 8
-23
-12
6
- 2
-10
-4
-
6
I Debits to deposit accounts e)l;cept interbank accounts.
1 Demond and time deposits, including certifled and officen' checks outsta nding but excluding deposits to the credit of bonks.
I This Agure indudes only one bonk in Texarkana, Texas. Total debits for aU bonks in
Texarkono, Texos-Arkansos, including two banks located in the Eighth Distria, amounted to
$32,297,000 for the month of July 1951.
I Indicates change of 'ess than one-half of 1 pe rcent.
Debits to deposit accounts reported by banks in 24 cities
of the District were 6 percent lower in J lily than in J line. At
this lower level, however, debits exceeded the total for July
1950, the first month of Korean hostilities and of greatly in·
creased consumer and business purchasing, by 4 percent.
With the exception of Texarkana, Texas, which showed an
increase of 6 percent, each reporting city in the District reg·
MONTHLY BUSINESS REVIEW
130
istered a lower debits total in July than in June. Decreases
ranged from 1 percent for Abilene, Corsicana, and Laredo,
Texas, to 23 percent for San Angelo, Texas. The annual rate
of turnover of deposits, or the annual rate of use of deposit
accounts, was 13.7 in July, as compared with 14.5 in June
and 13.8 in July 1950.
Between July 15 and August 15, the principal changes in
the condition of the Federal Reserve Bank of Dallas included
decreases in member bank reserve deposits and gold certi ro·
cate reserves amounting to $22,383,000 and $15,882,000, respectively. Changes in holdings of United States Government
securities and tOlal earning assets were nominal, with the
decrease in the latter resulting almost entirely from a decline
in discounts for member banks and other advances. Federal
Reserve notes of this Bank in aClual circulation on August 15
amounted to $652,994,000, reflecting an increase of $17,561,000 during the month and an increase of $42,053,000 over
the year-earlier total.
CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS
(In thousand, of doll an)
August 15,
Ite m
1951
Totgl gold certifkot. reserYes •..••. • . •••...• $ 516,878
Discounts for member banks ••••••••••••.•••
346
Industrial gdvQoces •••••..• ....• •.•.•••.••.
66
Foreign loo nl on gold •••.•.••.•.•..•. • . ..•
o
U. S. Government lecurilies ••••••••• • •...•.• 1,102,483
Total earning anets ..................... . . 1,102,894
Member bonk reserve deposits • ••• • •••••••••
932,044
federal Reserve notes in gc;tuol circulation • .•••
652,994
August 15,
1950
July 15,
1951
$ 672.858
517
$ 532,760
2.276
70
830,952
831,539
815,835
610,941
1,101,535
1,103,861
954,427
635,433
o
50
o
On July 31, the Secretary of the Treasury announced that
holders of the 11,4.percent Treasury notes which matured
August 1 exchanged $5,215,679,000 of those securities for
lhe new refunding issue of 11-month 1'Va-percent certificates
of indebtedness. Approximately 2.5 percent of the outstand·
ing notes were exchanged for cash.
On August 13, the Secretary of the Treasury called the
2%-percent Treasury bonds of 1951·53 for redemption on
December 15. It was also announced that the 2-percent Treasury bonds of 1951-55, also callable on December 15, would
not he called for redemption on that date. The called 2%.
percent bonds are outstanding in the amount of $1,118,051,000.
Under the persistent stimulus of the
defen se program, nonfarm employment
in Texas is estimated to have risen hy
mid-August to nearly 2,550,000 persons,
or 6 percent more than in Au gust 1950. The total increase
since hefore Korea amounts to about 180,000 persons, or 8
percent. Manufacturing employment at mid.August is esti·
mated at about 458,000 persons, or 11 percent more than a
year ago, with the in crease since hefore Korea amounting
to about 66,000 persons, or 17 percent. The largest gains in
employment during the summer were in government estah·
lishments, ordnance and aircraft production, services, and
construction, with a large proportion of the latter being at
defense installations. Some increases were also made in em·
ployment in transportation, retail trade, petroleum refinin g,
apparel production, and machinery production. Losses oc·
curred in lumber products manufacturing and, seasonally,
in wholesale trade. Unemployment in 17 Texas cities rose to
3.3 percent of the lahor force, as the result of hi gh school
and college graduates enlering the lahor market, but declined
as the summer progressed.
CRUDE OIL PRODUCTION
(Borre ls)
July 1951
Area
Toio l
production
ELEVENTH DISTRICT
Texas R. R. Com. Districts
1 South Central ...... •••
1,028,550
2 Middle Gulf....... . .. 5,084,000
3 Uppe r Gulf..........
15,250,600
.4 Lower Gulf........... 7,975,250
5 East Central. • . • . . . . . .
1,700,750
6 Northeast ••... .. .• •.. 12, 101, 150
EastTexos •..•.•..• 8,410,300
Other flelds.
3,690,850
7b North Central..
2,542,000
7c West Centrol..
3,318,450
8 West...... ...
29,704,950
9 North....... ... .... ..
4,897,450
10 Panhandle.......... .. 2,709,950
Total Texas . • ...• ... 86,313,100
Ne w Mexico . . . . . . . . . . . • . . . 4,504,300
North Louisiana .......... ... 3,936,000
Toiol Ele~enth District .••... 94,753,400
OUTS10E ELEVENTH 01
STR1CT. •• 96,820,950
UNITED STATES ••.•• •. •••••. . 191,57.4,350
Doilyovg.
production
33,179
164,000
491,955
257,266
54,863
390, 360
271,300
119,060
82,000
107,047
958,224
157,982
87,418
2,784,294
145,300
126,968
3,056,562
3,123,2..56
6,179,818
Increese or decrease in daily
a~eroge production from
July 1950
3,684
22,545
79,444
36,185
18, 200
16,949
_4,105
21,054
9,803
41,282
182,090
4,792
-5,058
409,916
14,624
-1,643
422,897
243.177
666,074
June 1951
132
693
-9,275
-4, 160
1,306
-8,308
-9,780
1,472
_5.143
1,775
16,281
318
-1, 182
-8,199
3,443
-2.687
-7,443
5,551
-1.892
SOURCE: Estimated from America n Petroleum Inditute weekly reports.
The daily average crude oil production in the District,
after six consecutive monthly increases, declined slightly in
July. At 3,057,000 barrels per day, output was only 7,000
harrels dail y below the record June level and was 4-23,000
barrels dail y, or 16 percent, more than in July of last year.
In early August a moderate increase in output, based on
higher Texas all owables, indi cated tl,at the June record probably would be exceeded. In the Nation, too, crude oil produc.
tion was at a record level in early Au gust, Still higher oUlput
is in prospect during September, since Texas production al·
lowables for the first of this month are 106,000 barrels daily
above the August 1 rate and 135,000 barrels daily above
July 1.
RAILROAD COMMISSION OF TEXAS
OIL AND GAS DISTRICTS
,
I.
3.
•
5.
Ii.
'h.
1c..
&.
••
to.
W
tDOl E CWLF
UI'PER GULF
LOWER GULF
on CEJ<fTRAL
NQRTH'E .l.ST
NOII:TH CENTRAL
WEST CENTRAL
WEST
NORTH
P'NHANDlE
MONTHLY BUSINESS REVIEW
Relinery aClivity in the District in July exceeded the June
record, with daily runs to relinery stills averaging 1,916,000
barrels, or 23 percent more than a year ago. The increase
since last year in this District continues to exceed substan·
tiall y the gain shown for the Nation's refmeries, which in
July amounted to 11 percent.
National stocks of crude oil and the four major relined
products- gasoline, kerosene, gas and distillate ruel oil, and
residual fuel oil-at the end of July wcre, each, 5 percent or
more above a year ago, with light fuel oil stocks being up
25 percent. Crude oil stocks in the Nation by the end of July
had risen to 251,000,000 barrels, which is only 1,000,000
barrels above the level often suggested as appropriate for
the industry. The upward trend of demand and the uncer·
tainty of the world situation have made an increase in the
crude inventory desirable. Gasoline stocks in the Nation con.
tinued to decline by less than the usual seasonal amounts,
while stocks of kerosene, light fuel oil, and residual fuel oil,
each, increased in line with seasonal patterns.
This strong stock position has been maintained in spite
of increased foreign buying of relined products in American
markets. While the 500,000.barrel.capacity relinery in Iran
is closed, a large amount of this loss of capacity is being
met by the stepping up of refinery activity around the world.
World crude oil production is being rather well maintained,
despite the loss of Iranian crude, . with Kuwait and Saudi
Arabia increasing output by an amount equal to about 70
percent of the normal crude oil production in Iran.
131
District and 24,100 in the Nation, representin g gains of 7
percent and 3 percent, respcctively, over the corresponding
months of last year. The rate of drilling activity forecast
by trade journals for the remaining months of 1951 would
lead to a new record for the year. Contributing to the high
rate of completions is activity in the Spraberry sands in
west Texas, where a trend about 130 miles lon g and 50 miles
wide, covering portions of eight counties and centeri ng in
the eastern part of Midland County, now has several hundred
producing wells. The Spraberry trend has several tinles the
area of the east Texas lield but, as yet, appreciably less
production capacity.
The steel shortage is curbing the expansion of the natural
gas industry. As anticipated, limitations of natural gas pipeline capacity made necessary an order by the PAD restrict·
ing natural gas utilities in 15 eastern states from taking on
new residential customers and requiring PAD approval before large-volume customers are accepted. Consumption of
natural gas has increased rapidly and, without restrictions,
defense plants and other present users might suffer from
shortages if too many additional customers were served.
VALUE OF CONSTRUCTION CONTRACTS AWARDED
(In thousands of dollan)
July
19S1p
Area and type
ELEVENTH DISTRICT ••
Residential. . . . . . .
All otfler.. .... ...
$
112,882
53,745
59.137
UNITED STATESt •...
While the present stocks of crude petroleum and its prod.
ucts are good insurance in an uncertain world, the possihility
of an oversupply during the months ahead should be Con.
sidered. The over· all United States supply has been exceed·
ing demand by an increasing amount since last March.
Though demand is at a record level, an oversupply situation
could develop quickly in the event of decreased military reo
quirements and the resumption of shipments from Iran. Thi s
is a risk the industry is forced to take, however, to be ready
for any emergency. Then too, there is the usual winter up.
swing in demand for heating oils, which might absorb most
of any excess of inventories built up during the late summer
and fall.
The Petroleum Administration for Defense in early August
appealed to the domestic oil industry to expand production
and adjust operations to the larger export demand for reo
lined products resulting from the halt in relinery operations
in Iran. Lookin g further ahead, the PAD has urged expansion
of domestic producing and relining capacity by 1,000,000
harrels daily by the end of 1953, with the possibility of an
additional 500,000 barrels daily being recommended if con.
ditions continue uncertain in Near Eastern sourccs of supply.
Possihle limitin g factors in such long-range expansion include the shortages of steel and other critical materials, which
are keeping the current refinery expansion program some.
what behind schedule.
Drillin g activity has continued at a hi gh level in spite of
the tight sleel situation, with well completions during the
lirst 7 months of 1951 totaling approximately 11,100 in this
1,379,830
Residential. . . . . . .
All other. . . . . . . . .
548,144
831,686
JoJ.y
1950
J"".
1951
$ 105,460 $ 108,388
50,318
48,622
58,070
56,838
1,420,181 1,408.932
545.152
675,080
745,101
863,780
January-July
1951p
1950
923,291 $ 636,411
409,109
299,937
514,182
336,474
10,187,93 9
8,274,329
3,871,871
6,316,068
3,932,205
4,342,124
1 37 states east of the Rocky Mountains.
p-Preliminary.
SOURCE: F. W. Dodge Corporation.
The total value of construction contract awards in the
District increased moderately from June to July. Though the
$113,000,000 worth of July awards was 4 percent more than
for the previous month and 7 percent more than in July of
last year, this amount represents the second lowest monthly
total since January. Residential awards at $54,000,000 were
up 7 percent from June and 11 percent from a year ago but
were the second lowest for any month this year. Military and
public housing projects amounting to at least $15,000,000
buoyed up the residential total, which otherwise would have
been substantially lower than a year ago. Sales of houses have
declined, and there has heen some price softening under the
impact of a "wait·and·see" psychology durin g the cease· lire
negotiations in Korea and the increasing proportion of new
houses covered by Regulation X.
Nonresidential awards in July amounted to $59,000,000,
or 2 percent more than during the previous month and 4
percent above July of last year. Ho,vever, compared with
the earlier months of this year, nonresidential awards were
noticeably down. Nearly two-thirds of the July nonresidential
awards were for public construction, particularly ed ucational
pro jects and army, naval, and air force installations.
Despite the contraseasonal lull in construction contract
awards during June and July, the total value of such awards
during the first 7 months of this year, $923,000,000, is 45
MONTHLY BUSINESS REVIEW
132
percent more than durin g the same months of last year. The
residential total for 7 months this year, $409,000,000, is up
36 percent, and the nonresidential total of $514,000,000 is
up 53 percent. It is probable that in spite of further declines
total awards for the full year 1951 will exceed the 1950
record, with the nonresidential total also being up from
1950. If public and military housin g projects sustain suf·
ficiently the residential sector of the industry, the 1950 recore!
for residential awards may be approached.
BUltDING PERMITS
7montM 1951
Percentage
Percentage
change in
change in
valuation from
July 1951
City
Nl1I1lber
Valuation
Number
July
1950
VollKJlion
vo luolion
from 7
monthl
1950
J""o
1951
LOUISIANA
Shreveport ....
TEXAS
Abil ene ...... .
302 $
Corpus Ch,I,tl ..
87
279
204
248
364
001105 ••• .. •• .
1,408
Amarillo . •.•••
Austin ... .... .
Beaumont • • •• •
221
Fort Worth •••.
532
Gltllveston •.•. .
108
Houston ••.••• •
809
lubbock • . •• ..
200
Port Arthur • •.•
167
SltIn Antonio . •• 1,263
Wltl(o ••••••••
13.
Wlchitltl FItIIIJ •••
95
B Poso .......
Totltllo •••••••• • •
845,959 -87 -34
2,283
9,906,866
-48
- I
241
-64 -34
-42
151
-58 -16
-37
112
-59 - 7
36 105
-52 -40
-64 -98
-52
24
-71 -19
-34 -77
-35
31
-17
88 -21
..
716
2,217
1,687
1,748
2,329
11,584
1,820
4,824
790
7,Q28
2,137
1,136
8,585
1,430
767
4,810,807
12,382,293
15,997,756
3,76 3,438
13,503,616
60,295,982
11,578,OBO
31,404,322
6,743,033
86,656,337
10,133,108
3,052,087
26,278,495
8,661,453
4,593,529
-39
- 3
-38
-42
-18
-13
-23
12
83
- 9
-33
-27
-15
-27
39
4
51,081
$309,761,202
qui red metal goods in inventory, Most residential huildin g
may go ahead, as well as small stores and even some amusement places, but the order will freeze temporarily the start
of many new factories, schools, hospitals, and public buildings. Builders of such projects may apply for allotments of
critical materials for the fourth quarter of this year,
With the worldwide scarcity of sulphur spurring the search
for new sources of supply, the commercial production of this
basic industrial raw material from sour gas has been started
in the Texas Panhandle, with similar projects under way in
west Texas and elsewhere. For seve ral years, sour gas has
been sweetened for commercial use by the removal of suI·
phur, hut until recently the process had been considered
unprofitable so fa r as the sale of the sulphur was concerned.
The ou tput of sulphur from sou r gas in Texas during the
second quarter of this year was only 1,108 tons, and even
the prospective rapid stepping up of production is unlikely
to result in more tl,an a fractional increase in the State's
total output, which last year amounted to 3,949,000 tons,
all from mines in four counties on the Gulf Coast. During
the first hal f of 1951, native sulphur production in the United
States- virtually all in Texas and Louisiana- totaled 2,594,000 tons, or 2 percent more than during the same period
last year. Restriction s on li se continued to hold consumption
at somewhat less than output, so that stocks were built up
to a moderate extent,
-15
928, 180
896,447
2,947,277
361,413
1,494,485
5,648,790
2,683,522
1,881,2 00
11 6,089
9,598,423
863,182
222,668
3,035,0 87
898,850
1,243,356
6,421 $33,664,928 -50
-
$
Many types of new construction were banned from August
3 until October 1 hy National Production Authority Order
M-4A, which prohibits the commencement of construction
that requires more than minimum amounts of steel and
copper, Exceptions are allowed in the case of the Atomic
Energy Commission and the Defense Department, as well
as in the case of private builders who already have the reo
Cement production in Texas durin g the first half of 1951
amounted to 8,666,000 barrels, or 7 percent more than during
the same period last year. This increase compares with a 15percent gain in the Nation. Carbon black production in the
Nation- mostl y in Texas and Louisiana- amounted to 798,·
000,000 pounds du ring the first 6 months, or 28 percent
more than during the corresponding months of last year,
:Most other southwestern manufacturing and mining indus.
tries also were operating at higher rates,
