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BUSINESS
REVIEW
SEPTEMBER 1958
Vol. 43, No.9
BANK LENDING TO SMALL BUSINESS
IN THE ELEVENTH DISTRICT
As part of a System-wide study to obtain information on bank
policies and attitudes with respect to small-business loans, the
Federal Reserve Bank of Dallas conducted, in the fall of 1957,
an extensive smvey of bank practices and policies with respect
to lending operations involving small-business borrowers. The
information obtained in the Eleventh District, along with that
gathered in other Federal Reserve districts, was used in the preparation of a summary report to the Committees on Banking and
Currency and the Select Committees on Small Business of the
United States Congress. In the Eleventh District, the smvey
sample included 68 commercial banks selected to represent all
geographic regions in the District and cities and towns of all
sizes.
Attitudes Toward Small-Business Loans
Most of the problems experienced by individual small businesses affect their credit needs and have an impact, in some degree, upon their credit standing. By virtue of their daily contact
with these problems, commercial bankers in the District are
aware of the difficulties and problems encountered by smallbusiness firms. With respect to lending to such businesses, however, commercial bank lending policies are subject to certain
limitations imposed by the nature of a bank's obligations.
First, a bank is obligated to its depositors for the safety and
liquidity of their funds. Thus, the quality of a bank's assets must
be reasonably high, and a considerable portion of these assets
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)
must be readily convertible into cash to meet seasonal evaluating the loan applications of larger business
and unexpected deposit withdrawals. Second, a com- establishments. The survey results indicate that a large
mercial bank has a responsibility to its stockholders proportion of small-business enterprises are, in the
for the safety of their investment and for a reasonable light of these considerations, acceptable bank risks for
return thereon. Thus, losses on loans and investments short-term credit on an unsecured basis and that their
must be avoided to the extent necessary to assure sound working capital requirements are readily financed by
and profitable operations. Third, a bank is obligated to local banks.
serve its community by accommodating the legitimate
Of course, a number of small businesses in virtually
credit needs of local industry, commerce, agriculture,
every community are not able to meet their banks' reand consumers.
quirements for credit accommodation on an unsecured
In meeting these obligations, each bank must for- basis and are accommodated on the basis of promismulate loan and investment policies which strike what sory notes secured by business or nonbusiness propit considers to be an appropriate balance between erty, securities, endorsements, or guarantees. The
safety and liquidity, profitability of operations, and prevalence of loans of these latter types and the
credit accommodation of local borrowers. Because to willingness of banks to work out such arrangements
some extent these requirements may present conflict- for small-business borrowers whose accommodation
ing aspects which must be reconciled, banks must on an unsecured basis would violate the credit standestablish certain standards of creditworthiness for ards maintained are significant indications of the
their borrowers and criteria for determining whether attitude toward the accommodation of small-business
the credit applications reflect legitimate credit needs credit requirements and the flexibility of bank lendand are within the reasonable limitations of sound ing policies.
commercial banking.
Eleventh District banks lend to small business in
From one bank to another, varying emphasis is
placed upon the several criteria used to measure creditworthiness and to determine whether a given loan application represents a "legitimate credit need" and a
bankable credit risk. Loan policies of commercial
banks vary from conservatism to liberality. Nevertheless, there is a tendency for conservative lending at
one bank to be counterbalanced by liberal loan policies at a competing institution serving the same credit
area. Thus, the availability of bank credit to small
business may not differ markedly from one trade area
to another. A factor of considerable importance in
influencing bank attitudes toward small-business loans
is the fact that the great majority of banks in the District are small themselves, and the major portion of
their business lending activity involves loans to local
firms, most of which are small in size.
Bank Lending Policies
The willingness of commercial banks to extend
credit to individual small businesses depends largely,
of course, upon the prospects for repayment. In measuring repayment prospects, the primary considerations
include the previous credit habits of the small-business
owner, the ability of the business to generate the
means of repayment, and the profitability of the borrower's business operations. These considerations, it
may be noted, are no different from those involved in
I~USINESS
REVIEW
a variety of forms. In each case, the particular form
of credit extension which is used depends largely upon
the credit standing of the borrower, the purpose for
which the credit is to be used, and the loan policies
of the lending bank. The most frequently used methods of extending credit are direct loans for equipment
financing; short-term, unsecured loans; loans secured
by endorsements, guarantees, and leases; and construction loans. The relative frequency of these forms
of credit extension, as well as of the less commonly
used forms, is shown in the accompanying table.
Credit Extensions to New Firms
Results of the study of bank policies with respect
to lending to small business indicate that virtually all
banks in the Eleventh District are more cautious in
lending to new firms than in accommodating the credit
requirements of existing businesses. In only isolated
instances, however, did banks report firm policies
against lending to newly organized business firms. As
a rule, commercial bankers realize fully that the progress
of their own institutions is closely associated with economic progress in the communities which they serve;
thus, they have a special interest in credit applications from new businesses which will generate local
income, broaden the base of the local economy,
and meet reasonably sound bank credit policies.
Nevertheless, this consideration often is tempered by
FORMS OF SMALL-BUSINESS LENDING, BY RELATIVE FREQUENCY OF USE
Eleventh Federal Reserve District
Percentage of 68 survey banks
reporting loan use O SI
Type of flnanclng
Relatively
fro qu ent
Rare or
nev er
Financing of comm ercial, industrial, or
farm equipment
Di rect loons. • . ... . ... .. . .. . . .. . . .. . . .. .. • • ..
Paper purchase d from deal ers.. • • • . •• . • . • .• . . ••
91
78
9
22
Poper rediscounted from Anance companies. • • • • • •
Purcha se or acceptance of pledge of consumer
21
79
59
72
71
41
28
29
50
82
91
68
50
18
9
32
90
88
75
10
12
25
87
13
paper from retail stores or dealers
Auto d e al ers. • • . . • . . . • . . . • • . . . • • . . • • . . • • . . . •
All other retailers.... . • • . . • • . • • • . . • • . • • • . . . • • •
Accounts receivable Anandng . • . . • • . • • • . . • • • . • • . . • • •
Unsecured loans
Term ...... .................................
Under lin es of credit'. . • • • . . • . • . • • • • • • • • • • • • • • •
Other... ............ .. . . ..... .. .... .. ......
Loons secured by inventory.... . • • . . • • • . • • • • • • . . • • • •
loans secured by guarantees, endo rseme nts,
leases, etc.. . . . . . . . . . • • . . .• . . • . . . . . . . . • . . . . • • . •
Construction loans. • • . • • • • • • • . • • • • • • • . • • . . • • . . • • . •
Mortgage loans on business properties. • . . •• ••• . ••• • •
Loans secured by collatera l unrolated to business
(lifo insurance, securiti es, hom e mortgag es, etc.). • • . . •
reluctance to finance businesses without operating histories, particularly in cases where the new-business
owner has not demonstrated an ability to compete effectively in the field of his operations.
The greater caution in the credit accommodation
of newly organized businesses is rather uniformly reflected in the application of more conservative lending terms. Thus, collateral requirements on loans to
new businesses tend to be higher; maturities on loans
to such firms often are shorter; and, in a comparatively
small number of instances, rates of interest are higher.
Occasionally, if the new-business owners are known
and regarded favorably by the lending bank, the
stricter terms do not apply.
At a large majority of banks in the District, the attitude toward lending to established small businesses
having new ownership or control parallels the attitude toward lending to newly organized firms. That is,
most banks show considerable caution in lending to
small businesses operating under new management, and
the more cautious attitude usually is reflected in more
conservative terms on credit extensions. As reasons
for exercising greater caution in lending to newly
organized firms or firms operating under new management, District bankers are almost unanimous in
citing the greater risks inherent in lending to firms
which (1) offer products or services for which the
market is not proved, (2) have not demonstrated a
capacity to compete effectively in markets which have
been proved, or (3) have not established a record of
borrowing and repayment habits which enable a bank
to evaluate fully the creditworthiness of the borrower.
Loan Rejections Involving Small Business
By the individual small-business owner who is unable to obtain bank credit in the amounts desired and
on the terms requested, the lack of availability of bank
credit is apt to be looked upon as the principal source
of his difficulty. To the commercial banker who must
reject the amounts or terms requested, however, the
lack of availability of bank credit is merely a reflection of more fundamental difficulties which the business is experiencing. Thus, to the extent that smallbusiness loan applications are rejected by commercial banks, the rejections most commonly stem from
considerations relating to the creditworthiness of the
borrower, as affected by the various credit-influencing problems which may be present.
The most frequent reasons, as stated by the bankers,
for rejecting small-business loan applications in the
District are poor earnings records, inadequate owner's
equity in the business, questionable management ability,
insufficient quality of collateral, and length of maturity
of the desired credit. To the extent that small-business
applications are rejected because of the insufficient
quality of collateral which small firms can pledge, most
of these rejections apparently occur outside the major
metropolitan centers, since this reason is not listed frequently by metropolitan banks as a cause for loan
rejections. Data on the relative importance of reasons
for small-business loan rejections in the Eleventh District are shown in the table below.
In view of the fact that most banks do not keep
records on loan rejections, it is difficult to obtain a
reasonably accurate estimate of the proportion of busiRELATIVE FREQUENCY OF VARIOUS REASONS FOR REJECTIONS OF
SMALL-BUSINESS LOAN APPLICATIONS
Eleventh Fed eral Rese rve District
Percentag e of 68 survey banks
citing reason a s:
Re a son for loan relectlon
Relatively
frequent
Rare or
never l
92
90
8
10
5
36
Reasons involving creditworthiness of borrower
Not enough owner's equity In busi ness ..••..•••...••
Questionable manag e ment abilit y • •.. ••••• .. ••..••
Poor earnings record ••••• •• ••. • . .• .. . • ••..•.••..
New firm wilh no established earnings record •....••.
Poor moral risk ••••••..•• •••.••..• • ••..••... • ••
Collatera l of Insufficient quality ••••• ..••.. ...•..• •
Slow and past due in trade or loan payme nts ••••..•
Reasons involving bank's over-all polici es
Line of busi ness not handl e d by bank ..•.•...••...•
Type of loan not handled by bank ••.•.•••..••...•
Re queste d maturity too long .• •. •••..•••...•... .•.
Loan portfolio for typ e of loon alrea dy full ..•.•...•
Applicant ha s no established d e posit relationship
with bank ••••.•••••..•••..•.••••..••...••.••
Applicant will not establish d e posit re lationship
with bank ........................... •• ·· •••·
Relative to the total number of loan re ie ctions application ••
1
95
64
46
54
92
84
8
16
28
18
72
55
12
82
57
43
40
60
45
88
not to the number of loan
BUSINESS
REVIE~1
ness loan requests that are turned down. At commercial banks which were willing to attempt this estimate, the indication was that less than 10 percent of
the total number of business loan requests (including
informal inquiries) are rejected; at most banks which
provided estimates of loan rejections, the percentage
rejected most commonly was placed at between 2 and
5 percent. While these estimates undoubtedly are subject to a wide margin of error, most of the banks participating in the survey were able to indicate that, in
terms of the number of business loan rejections, the
majority involved small businesses. In view of the
fact that small businesses account for the majority of
loan applications and since most marginal borrowers
tend to be small in asset size, it is not surprising that
the total number of loan rejections involves a greater
number of small firms than firms in the larger size
categories.
In the case of rejected business loan applicants
whose credit applications might be acceptable to
other institutions, commercial banks customarily refer their rejected applicants to such alternative sources
of financing as might accommodate them. In general,
it appears that applicants who cannot be accommodated are referred most frequently to insurance
companies and savings assoclatlOns if the primary
consideration in rejecting the applicant is the length of
the maturity requested or banking regulations which
prevent lending on the basis of unimproved property.
Applicants presenting risks that, for any of various
reasons, are not considered bankable risks often are
referred to the Small Business Administration or, in
isolated instances, to individual lenders and investors.
Recent Changes in Loans to Small Business
The information gained from personal interviews
with commercial bankers across the country has been
supplemented by the Survey of Business Loans at
Member Banks as of October 16, 1957. This survey,
comparable to a previous survey conducted as of October 5, 1955, provided information on business loan
characteristics both at a relatively early stage and at a
late stage of the recent period of monetary and credit
restraint. Definitions of small, medium, and large businesses as used in this survey may be found on page 409
in the April 1958 issue of the Federal Reserve Bulletin.
Between October 5, 1955, and October 16, 1957, a
period embracing 2 years of increasing credit restraint, the number of business loans at member banks
in the District rose from 83,050 to 95,778, reflecting
BUSINESS LOANS OF MEMBER BANKS, OCTOBER, 16, 1957, AND PERCENTAGE CHANGE, OCTOBER 16, 1957
FROM OCTOBER 5, 1955, BY BUSINESS AND RELATIVE SIZE OF BORROWER
Eleventh Federal Reserve District
(Dollar amounts in thousands)
RELATIVE SIZE OF BORROWER
Small
Medium
Large
Amount of
loans
Percentage
change
Amount of
loans
MANUFACTURING AND MINING
Food, liquor, and tobacco . • . ••••••••••••••••• • •
Textiles, apparel, and leather • •• . •••• • ••• •••••• •
Metols and metal products • . .•• • • • • • •••••• . •.••
Petroleum, coal, chemicals, and rubber •• • . ••••.• ..
All other • •• • • •• • ••• • • •••••••• •• ••• • ••••••• ..
$ 24,274
10,135
57,652
264,246
19,774
45.7
-10.7
6.1
-7.3
-5.4
$ 33,108
15,650
31,001
113,086
54,635
37.9
156.7
58.5
18.4
6.3
TRADE
Retail trade . .. ••••• .. ••••••• • •••• . •.••••••••
Wholesole trade ••• • •••• •• • • •••• •• • • •••••••.•
Commodity dealers . • . • •••• • • • ••.•• . •• .. .• . •.•
34,755
42,914
11,689
21.7
42.7
24.5
145,411
104,142
38,687
Business of borrower
Percentage
change
Amount af
loans
$
Percentage
change
4,263
2,077
8,016
13,552
9,354
-0.5
3,095.4
19.1
-8.8
132.7
17.6
79.7
13.0
74,405
26,922
35,660
58. r
258.2
155.5
OTHER
Sales finance companies .. . • •.• • •..• •• • ••• •. ...
Transportation, communication, and other
public utilities .••••••••.•• . •••••••••• . ... •..
Construction • . •.. •• • • •• • ••.••• • •••.• •••• ••..•
Real estate •••...•••••.•..• . • • •••• . • • •••.. ...
Service firms •.• •• •••••• • ••• • • • • • .•• • •••• •• • • •
All other nonfinancial business ••••• • •••• •• •• • ••••
56,950
-32.9
13,595
-38.9
34,070
75.3
3,715
12,193
32,696
19,314
10,762
59.0
-25.8
-48.0
-2.9
45.5
64,309
113,644
54,692
86,913
78,609
39.1
-.4
-9.7
12.3
2.4
6,082
90,970
11 5,885
36,930
104,085
-59.5
-6.6
-1.9
-7.9
37.8
ALL BUSiNESSES . • • •. ... ••• ••••.•. .. ...••. .. ...
601,069
-7.6
947,462
17.0
562,27 1
21.1
I:USINESS REVIEW
an increase of 15.3 percent. During the same period,
the number of loans to firms classified as small business rose 7.0 percent, those to medium-size firms increased 22.4 percent, and the number of loans to large
firms expanded 6.8 percent. In October 1955, 58 .3
percent of all business loans in the District were made
to small businesses, whereas in October 1957, small
businesses received 54.1 percent of the number of all
business loans outstanding.
broader markets, were able to capitalize on the expanded level of demand growing out of the Southwest's and the Nation's progression to higher levels
of economic activity. In the drought-stricken regions
of the District, therefore, medium- and large-size firms
were less affected than the smaller firms whose markets
centered primarily or exclusively in such regions.
In the manufacturing and mining categories, where
small businesses showed an absolute decline in borrowings in contrast to substantial increases in the borrowings of medium- and large-size firms , the decline
in the borrowings of small firms was weighted heavily
by the smaller 1957 borrowings of firms in the "petroleum, coal, chemicals, and rubber" classification.
In terms of dollar amounts, small businesses received 33.8 percent of total business loans outstanding
on October 5, 1955, but this percentage declined to
28.3 on October 16, 1957. In contrast, loans to medium-size enterprises rose from 42.1 percent of total
business loans on October 5, 1955, to 44.6 percent on
October 16, 1957, while loans to large firms increased
In each of the categories, factors other than credit
from 24.1 percent of the total to 26.5 percent over restraint were of varying importance in effecting
the same period of time. In the October 1957 survey, shifts in the distribution of credit among the relative
loans to businesses of undetermined size amounted to size classes. In construction, for example, small firms
0.6 percent of the total dollar volume. Percentage substantially reduced their borrowings between 1955
changes in the dollar volume of business loans, classi- and 1957, while medium- and large-size businesses
fied by type of business and relative size of borrower, showed only small declines. These changes occurred
are provided in the table above.
during a period when industrial and commercial construction,
commonly involving projects undertaken by
In connection with this table, it should be noted
larger
firms,
was rising. In contrast, residential conthat the absolute decline in the volume of loans to
struction,
a
field
in which smaller firms predominate,
small business between October 1955 and October
decreased
over
this
period. Real-estate loans were
1957 is associated partially with a number of factors
similarly
influenced
by
the changing pattern of connot related to credit restraint. First, the upper limit
struction
activity.
of the asset size for small-business borrowers was the
same in the 1957 survey as in the 1955 survey. DurAs suggested above, it is not possible to determine
ing this 2-year interval, a large number of firms unfrom the business loan survey data the precise extent
doubtedly experienced a growth in total assets which
to which changes in the distribution of bank credit
transferred them from the small-size group in 1955 to
among firms in various size groups were influenced by
the medium-size group in 1957. Thus, a natural ina restrictive credit policy and the extent to which
crease in business size is partially responsible for what
these changes occurred as a result of forces that proappears to be a shift in the allocation of bank credit.
duced differential effects upon the demand for credit
Second, although the District economy as a whole by business firms in the various size groups. Personal
achieved progressively higher levels of activity dur- interviews with commercial bankers in the District
ing the 1955-57 period, a substantial number of busi- revealed that the combination of strong credit denes~ firms in certain areas of the District were ad- mands and a restrictive credit policy occasioned the
versely affected by a decline in economic activity as a adoption of more selective lending policies during the
result of drought conditions. The lower level of op- 1955-57 period, particularly on the part of larger
erations of these firms occasioned a reduction in their banks in the District. While the evidence indicates that
credit needs, which partially offset the larger credit more conservative lending policies were applied unirequirements of businesses in other parts of the Dis- formly to both large and small firms, it is true, nevertrict. To the extent that drought conditions depressed theless, that uniformly more selective lending policies
the volume of loan requests in the drought-stricken tend to have a greater impact upon smaller firms, since
areas, the credit needs of small firms were most af- the marginal borrowers at most banks customarily
fected. Larger firms, tending to serve geographically are concentrated in the smaller asset-size groups.
BU S INESS
REVIE~
I
At most banks in rural areas and smaller population centers, lending policies were reported to have
remained virtually unchanged during the 1955-57
period. Increases in credit demands at these banks
were small or moderate, and the comfortable liquidity
and reserve positions which these banks traditionally
maintain permitted the accommodation of moderate
growth in credit demands without the imposition of
more selective lending policies. In isolated instances,
however, some rural banks adopted slightly more
conservative lending policies. At such banks, the
application of more selective lending policies commonly featured a greater relnctance to accommodate
nonlocal borrowers on a direct-loan basis, a strengthening of compensating balance requirements, and
extension of preferential treatment to established
borrowers. Since the lending operations of these banks
are confined almost exclusively to the accommodation
of small business, most of the impact fell upon smaller
firms.
Virtually all the larger metropolitan banks included
in the District sample reported the adoption of more
selective lending policies in the 1955-57 period. At
these banks, the accommodation of enlarged credit
demands generated by higher levels of production, income, and employment produced a gradual tightening
of reserve and liquidity positions; and the persistence
of unusually large loan demand required the scaling
down of some credit requests, a closer scrutiny of the
merits of loan applications, efforts to obtain higher
compensating balances, and, in general, the more reluctant accommodation of business loan requests from
almost all sources.
While the more selective lending policies of District
banks applied to short-term loans, term loans, and
firm commitments to extend funds, one of the most
noticeable developments was a pronounced increase
in the reluctance of banks to provide term financing
to businesses. This increased reluctance applied
equally at large and small banks, but because of the
greater amounts involved, commercial banks were
especially anxious to avoid term loans to larger firms.
In some instances, they were not successful in doing
so, however, because of the size and importance of a
particular business borrower.
The objective of avoiding term loans during the
period of monetary restraint reflected two basic considerations: the preference for avoiding loans which
would lengthen the average maturity of the loan portfolio, thereby aggravating the problem of declining
BUSINESS REVIEW
6
liquidity, and - in view of the pressure of demand
against a limited supply of loanable funds - the desire to make tlle same volume of funds go further (i.e.,
accommodate more borrowers) by accommodating a
number of borrowers on a short-term basis rather than
one borrower f?r a longer time period.
The more selective allocation of funds by commercial banks in the District featured, as outstanding
characteristics, differential treatment of new versus
established customers and of local versus nonlocal
borrowers. At virtually all of the District banks which
reported the adoption of more conservative lending
policies after 1954, established bank customers
received preferential treatment over new applicants,
and the consideration given new applications was
materially reduced. While these policies did not feature a distinction between businesses of different sizes,
the pursuit of such policies rather frequently involved
the rejection of national accounts seeking new sources
of credit supply.
Similarly, the extension of preferential treatment to
local firms consistently was reported by banks which
adopted more conservative lending policies after 1954.
Here again, the size of business of credit applicants
was not a material factor in the consideration of loan
applications, and to the extent that nonlocal borrowers received less favorable treatment at commercial
banks, relatively large firms were affected most.
A particularly crucial aspect of the question as to
whether small businesses bore a disproportionate share
of the burden of monetary restraint centers around the
changes in credit standards of commercial banks. Most
of the marginal business borrowers at banks are small
firms, and it should be expected that the impact of
any upgrading of the standards for creditworthiness
maintained by banks would fall largely upon these
marginal firms. The survey results indicate, however,
that the standards of creditworthiness applied to small
businesses have not changed, except in isolated cases.
For the most part, commercial banks which adopted
more conservative lending policies effected the desired
allocation of funds by scaling down some credit requests, by curtailing loans to nonlocal borrowers and
new customers, and by increasing their charges on
loans, rather than by upgrading credit standards
across the board.
LESLIE C. PEACOCK
Financial Economist
REV lEW
BUSINESS, AGRICULTURAL, AND FINANCIAL CONDITIONS
Eleventh District crude oil production in early August rose
sharply above July output to
reach 3,025,000 barrels daily.
A further substantial increase
is scheduled for September, since the Texas Railroad Commission has raised allowables 228,302
barrels per day. Crude stocks in the Nation remain
well below the year-earlier level, but gasoline stocks
are high enough to cause some concern.
July sales at District department stores rose
slightly over June but remained under a year ago.
Substantial weakness in sales of hard goods caused
the year-to-year decline since soft goods sales rose,
mainly from the stimulus of prefall buying in some
women's wear departments. Automobile registrations in the four largest metropolitan areas in the
District also improved over June but were nearly
one-third below July 1957.
Crops are maturing rapidly, and harvesting of
cotton and grain is making excellent progress. Cotton production in the District states is expected to be
substantially greater than it was in 1957. Output of
Retail sales at Eleventh District
department stores during July
rose 2 percent over June, principally because of an extra trading
day, but were 4 percent below
July 1957. The seasonally adjusted sales index, which
allows for differences in trading days and other seasonal factors, was 162 percent of the 1947-49 average
in July, the same as in June but below the 169 recorded for July last year. In early August, sales improved somewhat relative to last year and for the first
2 weeks were 2 percent above a year ago, but cumulative 1958 sales remained 2 percent under the same
period in 1957.
grain sorghums is moderately higher, and larger
crops of rice, peanuts, and hay are also indicated.
Rain is needed to maintain development of forage;
livestock remain in good condition.
Nonfa rm employment in t he District states during
July declined somewhat more than seasonally. However, unemployment in Texas showed the expected
seasonal decrease, and a further reduction is indicated for August.
Construction contracts awarded in the District
states during June reached the highest value since
the start of the five-state series in January 1956.
During July, construction awards in Texas reached
an all-time record for the month. Nonresidential construction accounted for a large part of these increases.
Except for loans to brokers and dealers, all major
types of loans, including commercial and industrial,
expanded at District weekly reporting member
banks during the 5 weeks ended August 20. Effective August 22, the Federal Reserve Bank of Dallas
raised its discount rate from 1% percent to 2 percent.
goods lines. Sales in the major household appliances
group - which includes refrigerators, stoves, laundry
equipment, air-conditioning units, and other large appliances - were down 35 percent from a year earlier.
DEPARTMENT STORE SALES AND STOCKS
(Percentaga chang o In rotall valuo)
July 1958 from
June
Area
Total Eleventh Distri ct. ••. •
Corpus Christi • ••••.•• •.••
Dalla . .... .. .. . .........
EI Pa. o ...... . ..........
Fort Worth ..............
Houston •••••••• • ••••• • •
The year-to-year decline in department store sales
in July was apparently due to weaknesses in the hard
STOCKS
(End of month)
NET SALES
San AntonIo . .• .. ...•••..
Shrevoport, la . .••... ....
Waco •• .. .•. .••. ..... . •
Oth~r cltlo •.•.•.........
1958
2
3
4
-9
-1
5
7
-3
1
-1
Jul y 1958 from
July
1957
7 mo •. 1958
compo with
7 mo •. 1957
-4
-4
-2
-3
9
1
3
-2
-9
1
-4
- 13
2
-6
-12
0
-6
-6
-8
2
BUSINESS
June
1958
0
1
1
3
-3
-5
2
3
3
0
July
1957
-8
-7
-8
8
-8
-15
0
-6
-15
-5
REVIE~
I
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
Eleventh Federa l Reserve District
(1947-49
= 100)
SALES (Daily ave rage)
Date
Unadjuste d
1957, July _______ •..
151
159
1958, May . ....... .
147
144
Jun e • ••••• •.•
July . .. . ...• _.
r -
Revi sed.
p-
Pre lim inary.
STOCKS (End 01 month)
Seo. onolly
Se a sonall y
adjuste d
Unadjuste d
adjuste d
169r
161
162
162
169
163
156r
156p
178
164
168r
164p
SALES AT FURNITURE STORES AND
HOUSEHOLD APPLIANCE STORES
(Percentage chang e in retail valu e)
July 1958 Irom
Line of trade
---~----June
July
by area
FURNITURE STORES
Total Eleventh Di.trict. . . • • • • . . . • . .
Ama rillo.. .. .... .. .. .... .. .... ..
Au. tin .. .. ...... .... ...... .. .. __
Dalla.......... ... ..............
Hou. ton.. . ............. .. .. .. ..
Lubbock • .... _• . . . . . . • . . . . . . . . . .
Son Antonio. . . . .... . . . ..........
Shreve port, La.. . . . . . . . . . . . . . . . . .
Wichita Fall.. ...................
Othercitie. . ........ . ........ ...
HOUSEHOlD APPLIANCE STORES
Total Eleventh Di. trict. • • • • . . . . . . . .
Dalla........... ... .............
1958
1957
7 mo •. 1958
compo with
7 mo •. 1957
-7
-3
-19
-2
43
0
-15
-6
23
-4
6
-13
2
-12
-12
3
-6
4
-18
-1
-9
- 6
-6
-9
-14
o
Harvesting of cotton and grain
sorghums highlighted agricultural activity during the past
month. Hot, dry winds and high
temperatures throughout most
of the District depleted surface moisture and hastened
maturity of · crops. Moisture generally is needed
throughout most of the Southwest to maintain development of crops and pastures, particularly from the
Cross Timbers westward into New Mexico and
Arizona.
-2
-1
2
-7
9
-15
-4
Sales of radios, phonographs, and television sets were
8 percent below July last year, but preliminary inf.ormation indicates that there was some strengthenmg
in sales of these goods in early August. Prefall buying
resulted in an 8-percent year-to-year increase in sales
of women's and misses' coats and suits in July. Yearto-year gains also were reported in sales of blouses,
skirts, and sportswear - up 3 percent - and silverware and jewelry - up 2 percent.
Inventories at District department stores showed
little change in July and at the end of the month were
8 percent below a year ago. Information from a
selected group of stores on new orders, orders outstanding, and receipts of merchandise to replenish
inventories indicates that approximately seasonal
month-to-month movements occurred during July but,
as in recent months, at levels substantially under a
year earlier.
As measured by new car registrations, automobile
sales improved somewhat during July. Total registrations in the metropolitan areas of Dallas, Fort Worth,
Houston, and San Antonio in July were 9 percent
greater than in June but 31 percent below Jul~ 1957.
Each of the areas showed a month-to-month mcrease
I:USINESS REVIEW
except Fort Worth, where a 2-percent decline occurred.
All four areas registered substantial decreases from
July last year, ranging from 18 percent in San Antonio to 37 percent in Houston. For the first 7 months
in 1958, total registrations were 25 perc en t below the
same period in 1957.
CROP REPORTING
DISTRICTS OF TEXAS
Cotton harvesting is past its peak in the Lower
Valley of Texas and is well advanced in coastal areas.
First bales have been ginned in the northern Blacklands and as far west as the Southern High Plains, but
in the latter area, peak harvest is still several weeks
away. Cotton remains quite promising in most sections, especially the irrigated western areas. In the
Blacklands of Texas, wilting and shedding of cotton
plants have resulted in some damage, and losses from
root rot have been prevalent in various localities.
The crop in the District states is estimated, as of
August 1, at 5,940,000 bales, or 13 percent greater
than last year and slightly larger than the 1947-56
COTTON PRODUCTION
Texas Crop Reporting Districts
(In thousands of 'ba les -
500 lb . gross wt .)
1958
1958
Crop reporting district
August 1
1957
1956
as f957nt of
l -N..............................
1-5....... .. .. . ... . .. . ......... . .
2-N..............................
2-5.. . .. . . .. . . . .. . . . .. ... . . . . . . ..
3........ .. ......................
4........ . ....... . ...............
5-N.................. ..... .. . ....
5-5 . .......................... .. .
6................................
7.. .. ........ . .. ... . .............
8-N ......... . ....................
8-5 . ....... .. ........... . .. .. .. ..
9.... . ......... . ............ . ....
10-5.. . . . . . . . . . . . . . . . . . . . . . . . . . . .
525
1,400
220
240
15
400
55
70
305
25
115
165
165
50
400
379
1, 196
217
263
17
424
70
72
272
21
115
115
156
36
279
499
1,186
166
109
9
358
84
75
289
11
84
134
163
52
396
139
117
101
91
88
94
79
97
112
11 9
100
143
106
139
143
State . . . • . . . . . . . . . . . . . . . . . . . .
4, 150
3,632
3,6 15
114
Indicated
1O-N... .... ..... .. .. ............
SO URCE, Unitod States Department of Agricu lture.
lent prospects for fall forage. All classes of livestock
remain in good condition, despite high temperatures
and increased cattle fly activity. Feed conditions as of
August 1 in the range states of the District generally
declined seasonally from a month earlier but were improved from conditions on the same date a year ago.
In the 5 weeks ended August
20, weekly reporting member
banks in the Eleventh District
placed $73.7 million of additional loans and expanded investments $108.5 million. About half of these gains
was offset by reductions in cash holdings. Deposits rose
$82.4 million, and the banks lowered their outstanding bills payable and rediscounts by $5 .5 million.
average. In Texas, record-breaking yields are indiLoan demand at the banks was active throughout
cated, and output is placed at 4,150,000 bales, re- the entire range of classifications, except loans to
flecting increases of 14 percent over the 1957 output brokers and dealers for purchasing or carrying securiand 5 percent over the 10-year average. Production is ties. These loans mainly reflected the decreased deplaced above the 1957 output in all areas of the State mand of Government security dealers, but interbank
except east Texas, the Blacklands, and the southern loans (sales of Federal funds) provided a more than
Low Rolling Plains. Prospective production in Ari- offsetting increase. Business borrowings rose $41.1
zona, New Mexico, and Louisiana this year ranges million, after registering moderate liquidation in the
from 8 percent to 19 percent higher than last year; prior 4 weeks. In the comparable 1957 period, a
output in Oklahoma is 3 percent smaller than the smaller gain was recorded. While business loans na1957 outturn.
tionally had shown a year-to-year decline thus far in
Native and improved pastures throughout the Dis- 1958, commercial and industrial credits extended by
trict deteriorated during August as a result of the hot, weekly reporting member banks in the Eleventh Disdry weather. Grass is curing rapidly, and rain is trict had risen about $94 million through August 20.
needed in most sections to maintain currently excelThe increase in bank investment holdings occurred
principally in connection with the August 6 Treasury
CROP PRODUCTION
cash financing. The banks increased their holdings of
Texas an d Five Sout hwestern Sta tes
certificates and Treasury bills by $148 .9 million and
(In thousands of bus he ls!,
$10.2 million, respectively. Their position in GovernFIVE SOUTHWESTERN STATES'
TEXAS
ment bonds was reduced $49 million.
Edimated
Crop
Cotton' ......... .
Corn •.......... •
Wi nt er whea t . ...
O a ts ..... . .. . . . .
Barley ...... . ....
Ry ......... . .. . .
Rice s .... . . ...•..
Sorghum groin . ...
Flaxseed . . . .....
Hay' ............
Peanuts 6 • • ••••• • •
Irish potatoes Ii ••••
Sweet rotatoes6. . .
Peca ns .. •. . ... . .
August 1.
1958
4,150
46,440
77,441
43,552
8,694
270
12,540
253,855
360
2,422
234,175
2, 148
1,320
45,000
Average
1957
1947-56
Estima ted
Aug ust 1,
1958
5,940
3,632
3,937
76,644
40,020
4 1,525
33,669 . 43,687 200,039
67,640
35,260
23,852
33,4 86
5,48 1
1,892
2. 175
180
240
24,488
11,104
12,863
238,095
96,256 277,320
385
126
827
2,3 16
6,394
1,690
159,840 2 13,524 362, 125
1,630
71,498
5,390
1,200
71,370
6,358
55,000
77,500
31,640
Arizona, l o uis iana, New Maxi co, Ok lahoma, and Texas.
In thousands of bales.
a In thousands of bags co ntai ning 10 0 pounds each .
• In thousa nds of tons.
r. In thousands of pounds.
o In thousands of hu ndredweigh t.
7 Average, 1949-56.
SOU RCE , United States Departme nt of Agricul ture.
1
!!
Average
1957
1947-56
5,242
6 1,440
8 1,912
53,55 8
23,71 1
1,255
2 1,704
267,742
164
6,047
256,640
4,4 95
6,14 6
108,500
5,906
72,283
11 8,3 13
39,9 18
12,241
817
25,133
113,676
1, 146
5,0 4 1
324,6 17
73,424
76,4 85
69,624
Deposit gains were widespread, with most demand
deposit categories rising. The Federal Government
replenished its balances by $52.1 million, largely reflecting the August 6 cash financing, for which payment was permitted by credit to Tax and Loan
Accounts. Individual and business accounts rose $7.7
million. Time accounts scored another monthly rise,
mainly as a result of expansion in business and personal accounts.
In July, Eleventh District member banks held daily
average free reserves of $63 million, which is
unchanged from the preceding month although
substantially above the year-earlier level. The monthBUSINESS
REVIE~
I
CONDITION STATISTICS OF WEEKLY REPORTING
MEMBER BANKS IN LEADING C('TlES
CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS
(In thousands of dollars)
El eventh Federal Reserve District
(In thou sands of dolla rs )
It e m
Aug ust 20,
195 8
Ite m
July 16 ,
1958
Aug ust 21 ,
1957
ASSETS
Commerci al and ind ustriollaoos • • •.•••.•• . ••• $1,55 5,27 4 $ 1,5 14, 150 $ 1,4 60,968
Ag ricultural loans•• •• • ••• •• •••••••••• •• ••• •
36,540
30,1 95
22,538
Loan s to bro kers and d e al ers in securit ies .. . . ..
24,0 68
44,489
28,065
Othe rlaans for p urc ha sing or carrying secu rit ies ..
[;184,39 8
18 1,412
147,913
Real -estat e loans •• .. . • •.. •• .. ••• • • . ••• .. ••
loans to bon ks ••••. .. • • •. . • .• . ••..••. . •• . •
All other loans.. . ... . .. . . . ..... . . ....... . .
G ro ss lo a ns ••. •• ..• • ..• • .. •. . .• ..••. .• .
Less reserves and unallocat e d charg e -offs ••
Ne t loan s . • • •••• • •• . •••• ••• • .••.. • • ••••
U. S. Trea sury bills ..... . . .. . .... .. . ... . . . ..
U. S. Trea sury certi flc otes of inde bte dn ess •••. . •
224, 133
52,232
657,27 3
22 0,456
30 ,427
, 39,059
193,080
30,0 15
61 4,93 8
4 5,72 9
2,660,188
45,05 8
2,497,5 17
42,774
84,307
233,772
269,272
947,222
311 ,2 55
74,1 07
84,92 1
26 8,959
996,264
313,068
224,96 5
107,0 11
158,182
8 44,525
280,51 2
1,845,82 8
394,559
494,530
1,3 19
49,030
571 ,803
154,208
1,737,31 9
426,254
522,993
1,45 6
48,466
605,532
162,332
1,6 15, 195
400,389
438,524
1,7 98
47,055
573, 319
170,470
-2,733,9
-18
--- --2,6 88, 189 2,6 14,330
- -- ---
U. S. Treasury notes ••• ••••••••• • ••• • •••• •••
U. S. Gove rnm ent bonds {inc. gtd. obligations). .•
Othe r secu rities •..• . .. •• ... .. .•• .. .• .. •• .•
Tota I inv estme nts • ..• •.. • . . . • . . . •..••.. • .
Cash ite ms in p rocess o f coll ection ..•.• • •. •. ..
Balances wi th ban ks in th e Unite d States • • • .. • •
Balances with ban ks in for ei gn countries ••••. • ••
Cu rre nc y and coin . • •..• • .. . •..• •. . ..•...• •
Rese rves with Fe d eral Reserve Ban k • .•. •... .• .
Other a ssets • • • ••. .• ..• • . . ••.. • • .. •. ... . .•
TOTAL ASSETS •• •.• . . .•.... .. . .... . ..
LIABIlITIES AND CAPITAL
k
- --
2,454,74 3
6, 199,466
6,11 8,682
5,70 1,4 93
De mand d e posits
Individuals, partn ership s, and co rpora tion s . • ••
Unit e d States Gove rnm e nt ••.•. • ... •..•• . .
States and political subdi visi ons • .. • •. . ••...
Banks in th e Unit e d States ••••.. •. .. •• •. • ..
Banks in for e ign countries •••••. ... ••. . ••. •
Ce rti fle d and officers ' che cks, e tc . . •• .•. .•• •
2,838,928
176,687
170,506
1,050,1 90
2 1,084
74,039
2,83 1,28 2
124,634
178,63 3
1,04 1,460
14,908
62,5 26
2,776,936
19 2,06 5
174,887
87 9, 207
20,811
5 4,5 81
Total d emand de posits . • . ••. .. •. .. . . . ..
4,331,434
4,253,44 3
4,098,487
Time d e posits
Ind ivid ual s, pa rtn ers hip s, and co rpo ration s .•••
Unite d States Gove rn ment . . •• . •• . ••• . ••..
Postal saving s .••••. •. .. • .. • . . •.• • •. . .. .
Sta tes and political subd ivi sions. • • .. • .• •..•
Ban ks in th e U. S. and for e ign countries • •..••
1,069,97 1
7,455
42 1
22 1,668
1,90 3
1,057,743
7,455
42 1
22 9.420
1,963
804,963
12,4 20
4 21
20 1,925
6,550
Total time d e posits . • •••• • •• • ••• • •• • .••
1,301,4 18
Total de posits . • .•... ..... . . . .• . .. ..
Bills payabl e , re discounts, e tc .. .... .... . ... . .
All oth e r liabilities . . . .•• ..•. •• • . .• •••• . ••• .
Total capital accounts ••• ..... • . .• • • .. • .. • ..
5,632,8 52
14,000
61,13 4
491,480
TOTAL LIABILITIES AND CAPITAL. . ... ..•
6, 199,466
--1,297,00 2
1,026,279
5,550,445
19,500
62,676
4 86,0 6 1
5, 124,766
4 1,050
8 4, 157
4 51,5 20
-6,118,6 82
5,701 ,49 3
Eleve nth Fe deral Re serve Di strict
(Avera ges of dall y fi gures. In thousands of dollars)
RES ERV E CITY BAN KS
Reserve ba lanc es •••. . . .. .. ••• .. •.
Re qui re d r ese rves • •.. .•. . •..• .. • .
Ex cess rese rves •• ... . . .• . .•. . •. • •
Borrowin gs •..• •. . •..• . ..•. . • ....
Free reserves • . ..•..••... .. •. . •. .
Jul y
1958
July
1957
$556,469
54 3,631
12,838
300
12,538
$555,65 9
539,46 8
16, 19 1
2,3 60
13,831
$ 57 8,383
56 9,056
9,3 27
19,228
-9,90 1
4 30,508
37 8,56 2
51,946
1,448
50,498
428,24 6
377,863
50,383
1,1 62
49,22 1
45 0,1 7 5
401,053
49,1 22
5,374
43,7 84
986,977
9 22,193
64,784
1,748
63,036
9 83,905
9 17,33 1
66,574
3,522
63,052
1,028,55 8
970,1 09
58,44 9
24,602
33,847
COUNTRY 8ANKS
Reserve balances •••. .. .•... ...• • .
Re quire d reserves . •.•. . •.. . ..•...
Excess reserves • •.. .• . . . •.. • ..•. .
Borrowing s • .. •• ......... . ..... . •
Free rese rves • • .. • .• .. . . • . . .•....
Jun e
1958
MEM8ER BANKS
Reserve balances •••.... . . .. •• .•••
Re q uire d reserves •• ..•• .. •• .• •.. •
Excess rese rves ••• . .•. . ••.• .. ••••
Borrowing s •. •• ...... .• ..•• ..• •••
Free rese rves • • .• •..•. . ..• .•• .. • •
BUSINESS REVIEW
10
July 16,
1958
August 21,
1957
$765,13 2
1,000
$738,747
1,100
991,5 23
992,5 23
965,139
743,027
991,617
992,717
980,776
729,057
$793,838
28,827
260
902,673
931,760
970,239
705,494
o
o
to-month changes were generally small and mainly
offsetting : Reserve balances rose $3.1 million, while
required reserves increased somewhat more; the
decrease in excess reserves was matched by a corresponding reduction in borrowed funds.
Gold certificate holdings of the Federal Reserve
Bank of Dallas increased $26.4 million during the 5
weeks ended August 20. The Bank's participation in
the open market account showed a fractional decline,
although the volume of securities transactions was relatively high. Member bank reserve balances declined
$15.6 million, while outstanding currency in circulation rose $13.9 million in the 5 weeks and $37.5 million on a year-to-year basis.
NEW MEMBER BANK
The Northeast National Bank of Houston Houston
Texas, a newly organized institution located i~ the terri~
tory served by the Houston Branch of the Federal Reserve
Bank of Dallas, opened for business August 27, 1958, as
a member of the Federal Reserve System. The new member bank has capital of $100,000, surplus of $100,000,
and undivided profits of $50,000. The officers are:
James l. Cowan, President; W. E. Carlisle, Jr., Vice President and Cashier; Vallo Q. Mclish, Assistant Cashier;
and Bob R. Daniel, Assistant Cashier.
NEW PAR BANKS
RESERVE POSITIONS OF MEMBER BANKS
Ite m
To tal gold ce rtiflcat o re se rves ••• •.• ..•. .• . ..
Disco unts fo r me mb e r ban ks ••.•• • •• .. • . .•..
Othe r discoun ts and advanc es . • ••••. • .. • .. •
U. S. Gove rnm e nt se curiti es ••• •. .•. .• •. • • . . .
Total e a rnin g a sse ts • • • • • •.. •• • • • . .•. •. .. • •
Me mb e r ban k rese rve d e posits •• .• . ... •• .. • .
Fe d e ral Rese rv e notes in actual circulation •• • ••
August 20,
1958
The Security State Bank, River Oaks, Fort Worth,
Texas, an insured, nonmember bank located in the territory served by the Head Office of the Federal Reserve
Bank of Dallas, was added to the Par list on its opening
date, August 23, 1958. The officers are: J. V. Brookshear, President; Victor Holveck, Vice President; C. E.
Francis, Cashier; and Ben Youngblood, Assistant
Cashier.
The Portland State Bank, Portland, Texas, an insured,
nonmember bank located in the territory served by the
San Antonio Branch of the Federal Reserve Bank of Dallas, was added to the Par list on its opening date,
August 23, 1958. The officers are: James G. Fisher, President; A. K. Adams, Vice President (inactive); J. E.
Bell, Jr., Cashier; and Charles J. Beall, Assistant Cashier.
Effective August 22, the Federal Reserve Bank of
District states nonagricultural
Dallas raised its rate on discounts and advances, under
employment in July, at 4,260,200, declined 11 ,300 workers
Sections 13 and 13a of the Federal Reserve Act, from
1% percent to 2 percent. This action was the first
from the revised June total-or
. increase in the discount rate since August 1957. In
somewhat more than the usual
the intervening 11 months, discount rates had been seasonal decrease. Most of the July decline resulted
reduced in four separate steps from 3 th percent to from a seasonal reduction in school employment.
1% percent.
Manufacturing employment showed a moderate downturn, with the decrease concentrated in transportation
The generally improved supply
equipment production and food processing. Trade,
and demand situation in the peservices, and construction were among, industries retroleum industry was reflected
porting employment gains. Unemployment in Texas
in two major developments in
during July reflected an approximately normal seasonal
early August: an increase in
decline to reach 195,500, or 5.4 percent of the labor
light heating oil prices in much of the Nation and a
force, compared with 208,500 and 5.7 percent in June.
sharp rise in crude oil production, primarily as a result of higher Texas allowables. District output in the
The average weekly hours and earnings of Texas
first half of August, at 3,025,000 barrels daily, showed manufacturing workers, after rising in May and June,
a gain of 270,000 barrels per day over July but was 4 were practically unchanged in July at 40.8 hours
percent below the year-earlier level. National produc- and $85.68. These levels compare with the recession
tion was slightly above the output in August 1957, re- lows of 39.8 hours and $82.39 in April.
sulting in the first year-to-year gain in 13 m(imths.
The value of construction contracts awarded in the
A further substantial increase in crude oil produc- District states during June was $496,248,000, which
tion is in the offing for September, since the Texas is the highest level since records for all five states
Railroad Commission has increased allowables 228,- were begun in January 1956. The June figure reflects
302 barrels per day by adopting a 12-day production sharp gains of 48 percent over May and 22 percent
schedule. Allowables in the other southwestern states over a year earlier, with much of the expansion occurshow little change.
ring in nonresidential construction. Large contracts
Total imports - crude and products - averaged for petroleum pipelines in Texas and Louisiana
1,443,000 barrels daily in the 5 weeks ended August accounted for $100 million of the June total. The
15, down 7 percent from the prior 5-week period and Texas Contractor reports that construction awards in
11 percent from a year ago. In partial compensation Texas during July reached a record for the month,
for the restriction on crude oil imports, product im- with the value more than 50 percent above both June
ports were increased 43 percent over the 1957 flow. and a year ago.
Crude stocks in the Nation on August 16 rose slightly
NONAGRICULTURAL EMPLOYMENT
from the 7-year low level of late July to reach 250,Five Southwestern Stotes'
038,000 barrels but were 13 percent below a year
earlier.
Pe rcent change
District crude runs to refinery stills showed a small
gain in the first part of August to reach a level of
2,142,000 barrels per day. Compared with August
1957, District runs were down 8 percent, while national refinery operations declined 5 percent.
Stocks of the major products showed a 2-percent
seasonal rise in early August, reaching 399,437,000
barrels on August 15. At this level, such inventories
were 1 percent under a year earlier, with stocks east
of the Pacific Coast down 4 percent. Only residual
fuel oil stocks reflected any substantial rise.
Number of pe rsons
- -July- - - -- - July
Typ. of .mploym.nt
1957r
Jun.
1958
July
1957
4,271,500
738,200
3,533,300
243,100
309,500
4,335,800
783,300
3,552,500
272,200
322,800
-0.3
-.5
-.2
- .8
1.7
-1.8
-6.2
-.8
-11.4
-2 .5
393,000
1,121,200
190,900
531,500
744,100
410,400
1,129,600
185,500
523,400
708,600
.5
.2
.4
.2
-2.3
-3.8
- .6
3.3
1.8
2.6
195 8.
Total nonagricultural
wage and salary workers ••
4,260,200
734,800
Nonmanufacturing • ... . .•. 3,525,400
Mining ..•. . . .... . . .. .
241,200
Construction • •••.•••.• •
314,700
Manufacturing . .... . .... .
July 1958 from
1958
June
Tran sportation and
public utlllti.s ... . ....
394,900
Trad ........ .. .... . .. 1,123,500
191,600
Servlco .. . ............
532,800
Governm ent • • . • . •..••.
726,700
Financ e . •• . . .••..• ....
Arizona, Louisiana, New Mexico, Oklahoma, and Texas.
• - Estimated.
1
r-
Re vised .
SOURCES, State e mploym.nt ag . ncies.
Fede ral Re.erv. Bank of Dalla •.
BUSINESS REVIEW
11
BANK DEBITS, END-OF-MONTH DEPOSIITS
AND ANNUAL RATE OF TURNoveR OF DEPOSITS
CONDITION STATISTICS OF ALL MEMBER BANKS
Eleventh Federal Reserve District
(Dollar amounts In thousand.)
Debits to demand
deposit accounts l
(In mllllo·ns of dollars)
Jul y
1958
ARIZONA
Tucson ••••••••.••••• $ 186,936
LOUISIANA
Monroe • ••• •••••.•••
73,115
Shreveport ••••••••••
275,901
NEW MEXICO
Roswell •• ...•. •• ..••
33,445
TEXAS
84,666
Abilene ••••.........
Amarillo ••••••••••••
189,895
Austin ••••••• • •• ••••
180,352
Beaumont •••••••••••
144,023
192,852
Corpus Christi •••••••
Corsicana ••.••••••••
15,588
Dallas •••.•...•...•. 2,254,821
EI Paso .............
292,645
735,876
Fort Worth •. ........
Galveston ••••••.••••
91,924
Houston ••••••••••••
2,302,716
26,493
Lore do ..........•..
147,463
Lubbock ••.. .• •..•••
69,906
Port Arthur ... .. .....
49,134
Son Angelo .••....••
566,335
San Antonio •• " ••• .•
19,427
Tex arkana 2 •••••••••
80,069
Tyler ••• . ...........
98,052
Waco .•.. . .... .. .••
102,676
Wichita Falls ••......
June 25,
1958
July 31,
1957
loans and discounts .•..•......•...•••••.•.•.•• $ 4,311
Unite d States Gove rnm e nt obligations .••......•..
2,581
Other securi ti es •. ..•.. ... •. .. .. .. • •..•.. • ..••
744
Reserves with Fe d e ral Reserve Bank .•••.•..••...•
954
Cash in vaulte .......• •• .... •... ......• .. ...•
133
Balances with banks in th e Unite d States •.. • , •..••
1,089
Balances with banks in for eign countriese ••••...••
1
Cash items in process of collection •••. • ..•...•.. •
424
Other a ssets e ••.•••..•••..•••..••..•..•••.••.
239
$ 4,276
2,628
743
974
130
1,160
1
461
239
$3,943
2,463
652
1,016
166
964
10,476
10,612
9,846
Demand d e posits of banks •• • .. • •..•.••..••..••
Other d emand d e posits ••.•...•••..••.••.•••.••
Time d e posits •. • .•. , ••••••..••..•.•.••.••.•..
1,160
6,290
2,087
1,193
6,416
2,065
1,011
6,335
1,631
Toto I d e posits •.••.•...• •..••. •... •. . •• .. • .
Borrowingse •..• •. .•. ••. .••.•..•• ••••••••••..
Other liabilitiese ••..••..••....•.•..••.•••....
Total capital accountse •••.•..•••••.• " ..•.....
9,537
14
80
845
9,674
7
92
839
8,977
20
70
779
TOTAL LIABILITIES AND CAPITALe. ... . . .......
10,476
10,612
9,846
Item
Annual rate ofturnover
change from
Area
July 30,
1958
Demond deposits'
Percentage
July
June
1958 1957
July 31,
1958
July June Jul y
1958 1958 1957
4
10
$ 107,759
20.8
20.4
20.3
4
2
-7
-1
50,107
179,680
17.8
18.4
16.9
17.9
17.9
17.5
11
11
27,161
14.5
13.0
13.2
ASSETS
TOTAL ASSETSe ............••.•..........•
2
425
215
LIABILITIES AND CAPITAL
4
-7
-6
6
8
8
0 -13
10 -3
-3
0
-2
-1
5
2
-1
6
8 -14
-2
4
2
13
4
11
12
10
2
1
4
5
-1 -15
-8
0
2
3
-4
-4
Tota l-24 cities •..••.. . $8,214,310
-1
2
59,528 17.0
117,048 19.7
126,932 16.7
101,552 16.4
109,265 21.1
22,276
8.3
1,046,554 25.7
150,590 23.3
368,746 23.8
68,393 16.3
1,197,749 23.2
21,901 14.4
101,546 17.5
46,178 18.0
42,783 14.0
379,263 17.9
16,295 14.3
62,609 15.4
65,265 17.8
107,200 11.4
16.7
19.1
15.4
16.1
19.1
8.4
26.6
23.0
22.7
15.4
22.6
14.4
16.9
16.4
14.4
17.4
14.6
15.5
17.4
12.1
17.0
23.2
16.2
18.5
21.6
8.9
27.4
24.8
24.1
18.4
23.2
13.8
16.6
17.9
13.7
19.0
16.8
16.6
18.1
12.4
21.5
21.2
22.2
$4,576,380
e -
Estimated.
BUILDING PERMITS
VALUATION (Doller amounts in thousands)
Percentage change
Deposi ts of individuals, partnerships, and corporations and of states and political
subdivisions.
• These flgures include only one bonk In Texarkana, Texas. Total debits for all bonks
in Texarkana, Texas-Arkansas, including one bonk locate d in the Eighth District,
amounted to $43,805,000 for the month of July 1958.
1
from
Jul y
1958
7 mos.
427
3,223
$ 1,751
617
3,391
3,738
16,231
193
306
134
2,1 Bl
791
822
135
1,558
269
173
1,493
273
200
1,108
1,842
1,728
2,485
1,902
14,34 1
4,416
4,599
857
9,151
1,763
1,259
10,920
1,520
1,028
2,048
2,195
4,676
2,870
3,050
25,039
6,067
6,514
280
20,776
3,961
462
5,167
3,302
439
11,238
15,924
29,348
10,346
15,734
93,020
36,602
30,951
2,416
131,596
22,748
7,698
35,979
9,437
4,050
Total-17 cities .. 10,234
65,533
$92,335
$483,317
Area
Tucson ••••••• •
Five Southwestern States
LOUISIANA
Shreveport ...•
TEXAS
Abilene •••....
(In thousands of pound.)
1958
Ave rage
as percent of
1957
Area
1958p
1957
1947·5 6
Arizona •••• •.••.••••••• ••• .••••••
louisiana ••••.••• • •••.•.••••••••••
New Mexico •••••••••••••.••.••••••
Texas •• •••••••••••••••.••••••••••
3,131
404
9,896
1,800
39,554
3,055
400
10,523
1,685
39,409
2,852
382
11,534
1,152
49,175
102
101
94
107
100
Total •.•...••....•• •.. .....•..
54,785
55,072
65,095
99
p-
NUMBER
July
1958
1958
7 mos. 1958
July
compowith
1958 1957 7 mos. 1957
7 mos.
June
1958
ARIZONA
SHORN WOOL PRODUCTION
Oklahoma .•....•..•..............
July 1958
Amarillo .•..•.
Austin ...•...•
Be aumont. ....
Corpus Christl .•
Dallas .••.....
EI Paso •......
Fort Worth ••..
Galveston ••.••
Houston ••••..
Lubbock ......
Port Arthur .•••
San Antonio •••
Waco • ••• . •••
Wichita Falls .•
Preliminary.
1~g
SOURCE, United States Deportment of Agriculture.
$
9,999
103
24
115
11
4
-4
63
-6
8
-12
0
122 118
66
143
139
33
7
67
34
17
-45
28
11
9
11
84
-26 -25
-20
23
205
61
-55 -50
29
-5
14
-9
65
14
79
-7
-2
-4
32
110
15
3
-50
35
-21
27
8
CRUDE OIL: DAILY AVERAGE PRODUCTION
(I n thousand. of barrels)
Change from
Area
ELEVENTH DiSTRiCT .•.•• •..
Texas • •..••.•••.••• •• ••
Gulf Coast •......•..••
West Texas •..••••••••
East Texas (praper) ••..•
Panhandle ..•• •..••. .•
Rest of State .•........
Southeastern New Mexico ••
North e rn louisiana •••..•••
OUTSIDE ELEVENTH DISTRICT.
UNITED STATES . •..... . . .• •
SOURCES,
1
2
July
1958'
2,754.8
2,399.3
461.9
1,034.6
128.5
104.0
670.3
249.2
106.3
3,744.9
6,499.6
1958'
July
1957'
1958
2,637.2
2,276.0
445.4
945.5
120.5
106.5
658.1
248.4
112.8
3,692.4
6,329.6
3,162.7
2,780.7
542.8
1,201.9
175.7
102.1
758.2
250.6
131.4
3,709.9
6,872.6
117.6
123.3
16.5
89.1
8.0
-2.5
12.2
.8
-6.5
52.5
170.0
June
June
Esti mated from Ame rican Petroleum Institute weekly reports.
United States Bureau of Mines.
BUSINESS REVIEW
12
VALUE OF CONSTRUCTION CONTRACTS AWARDED
July
1957
-407.9
-381.4
-80.9
-167.3
-47.2
1.9
-87.9
-1.4
-25.1
35.0
-373.0
(In thousands of doliars)
Area and type
June
1958
May
1958
FIVE SOUTHWESTERN
STATES' .......... $ 496,248 $ 335,143
Residential ........
143,185
156,659
All other .•.... .. ..
353,063
178,484
UNITED STATES . •.. .. 3,819,582 3,398,952
Resid e ntial •• ..•.•. 1,364,231
1,342,547
All other .•...... .. 2,455,351 2,056,405
1
January-June
June
1957
408,120
107,399
300,721
3,223,486
1,135,049
2,088,437
Arizona, louisiana, New Mexico, Oklahoma, and Texas.
SOURCE, F. W. Dodge Corporation.
1958
1957
1,953,736 $ 1,888,428
764,433
655,138
1,189,303
1,233,290
16,788,625 16,938,005
6,504,707
6,463,314
10,283,918 10,474,691
@FedFRASER