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BUSINESS REVIEW SEPTEMBER 1960 Vol. 45, No.9 THE OUTLOOK FOR THE SOUTHWESTERN PETROCHEMICAL INDUSTRY A vital question concerning the economic future of the Southwest is whether or not the petrochemical industry will continue to expand rapidly. During the postwar period, petrochemical plant construction has been a very important force for growth on the Texas-Louisiana Gulf Coast and in some inland centers. Failure of the industry to continue expanding rapidly would certainly moderate the economic prospects of many southwestern communities in which rising chemical firm payrolls have provided much of the basis for growth. There appears to be little question that the petrochemical industry in the United States has a bright future, but most analysts are currently predicting a national annual growth rate of 7 to 9 percent during the next several years, contrasted with an average of well over 10 percent in the last decade. Part of the explanation for the anticipated lower future rate of growth of the industry is the current existence of substantial overcapacity in several basic petrochemicals. High-density polyethylene and epoxy resins are examples of chemicals with capacities well in excess of present demand. Overcapacity is not uncommon, however, in a growth industry. Normally, it takes 2 to 3 years to complete a chemical manufacturing plant, and extensive scale economies encourage producers to construct facilities with capacities well in excess of current sales potential. Nevertheless, the past success of the industry in providing surplu~ capacity to satisfy future demand for several major petrochemIcals tends to dampen present investment req uirements. FEDERAL RESERVE DALLAS, BANK OF DALLAS TEXAS This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) Moreover, significant environmental changes in the petrochemical industry - including a changing raw materials cost picture, increased international competition, and intensified sales efforts by alternative chemical sources - may make the future appear less bright than earlier. Much of the rapid postwar development of petrochemicals has been based upon the exploitation of previously unused refinery gases, which now provide about one-half of the industry's feedstock requirements. Although there are substantial amounts of suitable refinery gases for chemical manufacture, much of the petrochemical industry's expansion must be based upon exploitation of alternative raw material sources, which are often much more expensive. It is estimated that ethylene, presently the most important petrochemical intermediate, can be up to twice as costly to manufacture from natural gas liquids as from refinery off-gas. Another trend affecting the future growth of the petrochemical industry is the increasingly competitive condition of export markets which traditionally have accounted for a significant share of domestic production. Rapid additions to foreign petrochemical industry capacity, with resulting export surpluses, and improving technology abroad have allowed foreign exporters to become well established in some of our traditional overseas markets. It also appears likely that American imports of chemicals, which advanced 25 percent last year, will rise further as foreign producers (particularly Canada, west Europe, and Japan) win new markets in this country with their comparativly low-cost products. The United States became a net importer of fertilizer in 1959, after years of substantial export surpluses. In the past, foreign producers have often been dependent upon relatively high-cost sources of hydrocarbon raw materials, but the recent completion of many refineries abroad has made large quantities of refinery off-gas available. It also seems possible that low-cost natural gas eventually will become available to Europe from North Africa via pipeline or tanker. Another trend which depresses the growth prospects of petrochemicals is the increasingly competitive vigor evident in the coal tar industry, where new expansions are planned and progress is being made on more efficient recovery and use of coal tars. Despite these notes of pessimism, the industry's outlook is favorable because of the large increases expected in the demand for plastics and synthetic fibers. It is widely believed that demand for plastics will advance at a rate of 8 to 10 percent per year as more plastics are BUSINESS REVIEW 2 9:1960 used in construction and automobiles and in numerous other ways. Plastics are becoming increasingly competitive with other materials as a result of both new molding techniques which lower fabrication costs and declining plastics prices. Synthetic fibers also appear certain to compete more widely against the older cellUlosic and natural fibers. Current Regional Growth Trends With prospects for the growth of the petrochemical industry strong nationally, the question that most vitally concerns the southwestern states is, "What portion of this expansion will be provided by existing or new finns located here?" Several industry surveys made in recent months give some indication of the trends in the location of new petrochemical plant capacity. The Oil and Gas Journal recently reported that 43 percent of the Nation'S petrochemical plants in operation and 57 percent of the plants under construction in 1959 were located within the Eleventh District states, principally in Texas and Louisiana. Northeastern states accounted for 19 percent of the currently operating plants and 22 percent of the plants under construction. The southern states, according to The Oil and Gas Journal, had 6 percent of the operating plants and 4 percent of the plants under construction, while the respective shares for the PacifiC Coast were 12 percent and 6 percent, with California the dominant producer. The midwestern states of Ohio, Michigan, Indiana, Illinois, and Kentucky all have large petrochemical complexes and, in total, accounted for 16 percent of the Nation's operating plants and 8 percent of the plants under construction in 1959. NUMBER OF PETROCHEMICAL PLANTS UNDER CONSTRUCTION UNITED 45 STATES 45 30 15 o SOURCE:!!! o Q!!. ~ ~ ~. to provide cheap sources of chemical industry raw materials in the Southwest because heavy hydrocarbons Extrapolation of current trends, nevertheless, is not found in natural gas suitable for petrochemical manu~he only indication of the future growth of the chemical facturing ~ener~lly a:e stripped in the producing states Industry. A realistic appraisal of the outlook for petro- ?efore ~elivery mt? mterstate natural gas pipelines. It ~hemicals in the District states must include an inquiry IS tech~.ICally pOSSIble to strip natural gas nearer the Iuto the specific types of chemicals which are expected consummg st~tes, but pipeline companies traditionally to grow in demand and the relative ability of southwest- pay no premIUm for "wet," or heavy hydrocarbonern states to attract the facilities needed to manufacture laden, gas. As a result, most gas shipped out of the these products. The Southwest, in the past, has proved Southwest is "dry"; and, at the present time, over twoto be an extremely attractive location for raw materials- thirds of the Nation's natural gasoline plants operate in oriented, as contrasted with market-oriented, chemical the southwestern states, with no apparent trend toward indUstries. Because about 36 percent of the Nation's l?cating a greater share e~sewhere . West Texas is parrefinery capacity is located in the Southwest, area users tIcularly well endowed WIth feedstocks available from have found abundant quantities of very low-cost petro- natural gasoline plants. chemical feedstock in the form of refinery off-gas. Low In addition to the local supplies of raw materials ra:-v . material costs are of major importance in deterGulf Coast plants have the advantage of a locatio~ mlmng the most advantageous location for chemical plants. Unskilled or semiskilled labor costs are a com- which provides access to major domestic and foreign paratively small percentage of manufacturing costs in markets. Access to the Gulf of Mexico for purposes of theyetrochemical industry, and plant construction and chemical waste disposal also proves to be very impormamtenance costs have been nearly equalized through- tant to many chemical firms . ~ut the Nation, following the development of construcOne ~f the most important reasons why the Gulf ~Ion techniques which permit outdoor chemical-process- Coas~ wil.l be a s?ught-after .location for new petroIng facilities in northern states. chemIcal mdustry IS based on ItS past success in attracting chemical producers. Most organic chemical products Besides having unused refinery gas available on the Gulf Coast, the Southwest has the largest supply of are ~ade from a n~mber of raw materials. Many firms alternative petroleum hydrocarbon raw materials for find It very convement to purchase intermediate petrochemical industry manufacture in the Nation. Natural chemicals from other plants - so-called merchant gas and liquids associated with natural gas appear to be chemicals - rather than invest in facilities to produce major raw material sources which will supply new petro- all of their needed feedstock captively. Specialization chemical industries, and it is estimated that, by as early in the manufa~tur~ of chemicals to supply many users as 1965, these hydrocarbons will provide at least one- has produced SIgnificant scale economies, and the firms half of the industry's feedstock requirements. With re- now engaged in petrochemical production on the Gulf se!"ves of natural gas and natural gas liquids in the Coast are perhaps more interdependent than those in DIstrict states accounting for 85 percent and 87 percent, any other major industry in the United States. Other respectively, of the Nation's large supply of these re- economies of agglomeration achieved in the Gulf Coast sources, the supply of feedstocks in this area seems to area include the development of pools of specialized be without practical limit. In addition to providing labor skills and service facilities not available on a comcheap raw material sources, the Southwest's store of parable scale elsewhere. There are, of course, petrochemical complexes outside the Gulf Coast area but natural gas and petroleum assures local industry of com. ' nowhere else IS there such a concentration of chemiparatively low fuel costs. cal intermediates readily available to potential new Both natural gas and natural gas liquids are easily industry. transportable, but delivered prices are far lower in the Other major attractions of the Gulf Coast include its SOuthwest than elsewhere in the Nation. For instance, large sulfur, salt, and lime deposits (lime is a product of t~~ average cost of natural gas used in industrial quanocean oyster shells). The existence of numerous salt tItIes is about 17 cents per thousand cubic feet in Texas, domes near the gulf also provides industry with cost cOmpared with over 65 cents in New York, a leading advantages because of their usefulness in storing cheminortheastern chemical-producing state. Even the exporcal raw materials, principally liquefied petroleum gas, tation of natural gas to other parts of the country tends Advantages of Southwestern Location BUSIN ESS RE VI EW 9:1 960 1 *, S. OAK . NEBRASKA AI KANSAS 05 A2 *2 PETROCHEMICAL PLANTS IN OPERATION - 1959 0... IE - *- ORGANICS NITROGEN - CHEMICAL BUTADIENE AND COPOLYMER SULFUR CONVERSION AND CARBON BLACK SOURCE: The 2i!. and Gas Journal. --- and as a low-cost source of chloride chemicals - the basis of many plastics, solvents, and intermediates. Despite the impressive array of locational a?va~ tages afforded by the Southwest, its ma}or appeal IS stIll to raw materials-oriented petrochelmcal plants. The further success of the Southwest in attracting the chemical industry will depend, to a great extent, upon the relative weights assigned to raw material, market, or intermediate locations by future chemical producers. Competition of Other Regions Areas of the country outside the Southwest also have features attractive to the petrochemical industry. Despite higher raw material costs,. the. petro~eum~based chemical industry has grown rapIdly III Cahforma and the northeastern and midwestern states, although all major regions have attracted a ~ew plants. Proxi~ity to rich regional markets has provided much of the Illcentive to locate outside the Southwest. rBUSINESS REVIEW 9:1960 Continued expansion of the Pacific Coast petrochemical industry appears likely as more firms locate there to supply the rapidly growing regional market, but California - the largest area petroleum producermust purchase large quantities of crude oil and natural gas from the Southwest and abroad. In addition to paying relatively high raw material costs, California chemical producers are too distant from major eastern markets to compete effectively. Although several Mountain States have low-cost petroleum hydrocarbon resources suitable for petrochemical manufacture, the markets of potential producers are generally too limited to attract large firms. The southeastern states, with the exception of Mississippi, lack substantial local petroleum resources and also have relatively small potential chemical markets. In the northeastern third of the Nation, improved methods of transportation of petroleum feedstock fron1 the Southwest and the generally increasing flow of foreign crude oil imports have partially erased earlier dis- advantages of high raw material costs. It is expected that continuing petroleum imports and sustained adyances in pipeline and barge transportation will further l~prove the competitive position of this area. On the hability side, however, good plant sites are relatively scarce in some highly industrialized northern states. Continued development of inland waterways and construction of new, more efficient barges promise to make locations along the Mississippi-Ohio River Basins m?re attractive to the petrochemical industry. Firms in thlS area enjoy the advantages of location between large, rapidly growing midwestern markets and low-cost Southwestern raw material sources readily accessible via connecting pipelines or barge service. With large fresh-water, brine, and coal resources, West Virginia appears to be a particularly formidable competitor. Nearer the Southwest, anticipated development of lower Mississippi tributaries (such as the Arkansas, Red, and Ouachita Rivers) promises new interest in these river basins. Chemical plants located in the midcontinent area generally may not compete with Gulf Coast firms for eastern seaboard markets but often have transportation cost advantages as suppliers to the rapidly growing north-central industrial area. O utlook for Growth of Major Petrochemicals In order to determine the Southwest's share of the anticipated expansion of petrochemicals nationally, an analysis of growth trends of specific types of products m.ust be made. Of the major petrochemical groups, the ahphatics (ethylene-, propylene-, butylene-, and acetylene-based chemicals), which now represent over onehalf of industry production, appear likely to account for at least two-thirds of the projected growth of petroleum-based chemicals in the next decade. It is expected that the inorganics (ammonia, sulfur, and carb on black) and the aromatics (benzene, toluene, and xylene) will make only relatively small contributions to the over-all growth of the industry. Although petrochemical aromatics production is concentrated in the Southwest, where requisite raw ~aterials are readily available from refineries, expanSlOn in the output of these chemicals, with the exceptio~ of benzene, probably will be moderate. Demand IS eXpected to increase comparatively slowly, and ~ecause Scale economies in the production of aromatics a:-e small, competing regions may well b~ succ~ss~ul III ~ttracting a large share of new capaCIty. WIthIll ~he lnorganic group of chemicals, carbon black productIOn shOuld increase slowly in the District, although growth is likely to be centered on the Gulf Coast - close to available supplies of heavy oils from refineries and near synthetic rubber plants, the major consumers of carbon black - rather than in west Texas, as in previous years. Sulfur and ammonia production should also expand. ~nly mo~erately because of growing foreign competItIOn and, III the case of ammonia, overcapacity. Of the aliphatics, ethylene chemicals have enjoyed the greatest relative growth and appear destined for continued rapid expansion . About two-thirds of the ethylene chemicals capacity is located on the Gulf Coast, although major markets for products made from such chemicals are in the northeastern states. The availability of low-cost ethylene and the relatively high cost of transporting it over long distances have encouraged users to locate on the Gulf Coast. Currently, ethylene is available on the Gulf Coast for about 20 percent less than o~ the East Coast, and this cost advantage is likely to contmue as a result of the wide variety of suitable raw materials available in the Southwest for making ethylene. It is, therefore, reasonable to assume that, because of the region's raw material cost advantage, most primary ethylene capacity and production of ethylenebased intermediates will remain in the Southwest in the foreseeable future . Propylene-based chemicals are perhaps even more likely to be manufactured in the Southwest. Today, only a small percentage of the considerable quantity of propylene available from southwestern refineries is being manufactured into chemicals, and substantial diversion of propylene from refinery uses to petrochemical manufacture is probable if propylene chemicals achieve the impressive growth currently forecast. Principally because of their low raw material costs (up to 40 percent less than ethylene), propylene chemicals are already winning large markets from competing materials. A considerable quantity of butylene also is available in the Southwest for petrochemical manufacture. Although many of its chemical derivatives are in excess capacity at present, synthetic rubber products based on butylene have considerable immediate growth potentiaL On balance, it appears that a large portion of new producers of petrochemical intermediates may locate in the Southwest, but this prospect does not necessarily mean that manufacturers of final chemical products will locate here. Often, it is profitable to transport intermediates manufactured in the Southwest to areas with comparative advantages in the fabrication of final prodBUSI NES S REVIEW 9 :1960 1 51 ucts. Items manufactured from plastics and synthetic fibers - the most rapidly growing petrochemicalsprobably will continue to be made principally outside the Southwest. For instance, it is likely that most intermediates used in producing ethylene- and propylenebased fibers will be manufactured in the Southwest but actual spinning of fibers will be concentrated in the southeastern states, which have a labor cost advantage and are closer to the major fabric mills. Likewise, it is probable that the manufacture of final plastic products will be concentrated near major market areas, although a very large share of the intermediates used will originate in the Southwest. Of course, as markets in the Southwest grow in size, it may be expected that more plastic products will be made in this area to satisfy local demand. Synthetic rubber, the production of which may grow at a much lower rate than in the past few years, is another major petrochemical that is most likely to be manufactured in the Southwest near raw material sources but is usually molded nearer market centers. Southwestern Trends Within the Southwest, there may be some significant changes in the location of new chemical industries. In the past, the greater Houston area has attracted a very large share of new petrochemical plants, although extensive industry development has occurred in the Beaumont-Orange area and elsewhere along the TexasLouisiana Gulf Coast. Several inland Texas areas also have attracted petrochemical complexes - e. g., Longview, Odessa, Big Spring, Borger, and Pampa - but capacities have generally been smaller than those of the Gulf Coast industries. Despite the availability of very low-cost raw materials and fuels, the growth potential of the west Texas petrochemical industry appears to be limited by comparativelv high transportation costs to major markets and, at least in the Panhandle, by threatened water shortages. West Texas would appear to be most attractive to petrochemical producers who seek lowest cost raw materials and are able to manufacture relatively high-value products which are normally shipped by rail, rather than water, to major market centers. Sufficient water supplies are currently available or projected in most west Texas areas to provide for substantial expansion of local petrochemical production, and the recent announcement of a major complex to be built in Odessa demonstrates the ability of the area to attract new industry. It is expected tllat, in percentage terms, the petro- I BUSINESS REVIEW 16 9:1960 chemical industry will grow very rapidly in west Texas, although actual investment expenditures probably will be lower than in the Gulf Coast area. On the Texas-Louisiana Gulf Coast, the principal development expected is a migration of the locus of major new centers of the Gulf Coast chemical industry both southward and eastward from the greater Houston area. A shortage of plant sites on deep water will limit the growth of the Ship Channel chemical industry, and the full potential of other Gulf Coast areas has not yet been developed. Particularly rapid growth of the Beaumont-Orange area appears likely because of the large local supplies of petrochemical raw materials and water resources and the ease of access to major markets. The area south of Houston is less richly endowed with water, but adequate supplies are available for large projects; and substantial chemical industry growth is expected there. South of the Corpus Christi area , however , water supplies are a critical problem which could well limit the growth of chemical industries. With the rapid development of pipeline facilities to supply chemical intermediates along much of the Gulf Coast area and with the continued expansion of barge canals allowing companies increasing freedom in the selection of plant locations, the availability of water supplies may becOlue a primary consideration in ultimate industrial site selection. In Louisiana, a new outlet from the Mississippi to the Gulf Coast which will be navigable by 1963 should provide improved deepwater shipping facilities as far upstream as Baton Rouge. In addition to having impressive fresh-water resources, excellent water transportation facilities, and other advantages, this area is particularly rich in natural gas heavily laden with petroleum liquids suitable for petrochemical manufacture. Conclusion It now appears probable that the absolute rate of growth of the southwestern petrochemical industry may be maintained at near the current level for the next several years and the Southwest will continue to attract t?e major share of the Nation's petrochemical expanSIOn. As local markets for fabricated plastics and fabricS expand, more chemical intermediates will assume final form in the Southwest, but the major role of the area's petrochemical industry in the near future likely will remain that of a supplier of chemical materials to fabricators located in other parts of the Nation. THEODORE R. Eel( General Economist BUSINESS REVIEW BUSIN ESS, AGRICULTURAL, AND FINANCIAL CONDITIONS Eleventh District agricultural conditions continue favorable, alth,ough recurring rains are delaying harvesting and are damaging some crops. Output of cotton, rice, wheat, flaxseed, pecans, and some vegetables is indicated to be larger than in 1959; but production of grain sorghums, corn, peanuts, hay, and oats is expected to be smaller. Ranges and livestock remain in good condition. Texas crude oil production in September will be limited to 8 days for the fifth consecutive month. Crude runs to District refinery stills remained high during the first half of August, but, with market demand strong, prices of finished products generally advanced. Retail sales at District department stores in July declined 4 percent from June and 3 percent from July 1959. The declines appear to reflect mainly the fact that the recent July had one less business day than ~ither of the other months; thus, the seasonally adlusted level exceeded both June and a year ago. Retail sales at Eleventh District department stores in July reflected strongly sustained consumer spending, despite dollar volume declines of 4 percent from June and 3 percent from July of last year. Normally, department store sales in July show a seasonal summ~r lag of about 3 percent from the preceding month. ThIS Year, the declines from both June 1960 and July 1959 appear to reflect mainly the fact that the recent July had one less business day than either of the other months. . On the basis of daily average sales, purchases. at Distl'lct department stores in July equaled those m June ~nd were fractionally above a year earlier. The adjusted ~ndex of sales, which makes allowances for seasonal Influences and variations in the number of trading days, rase from 170 in June to 175 in July, compared with Department store inventories at the end of July were 5 percent more than on the same date last year. Construction contracts awarded in the Eleventh District states during June increased significantly over May but were somewhat below a year ago. Nonresidential awards accounted for all of the month-tomonth increase. Nonagricultural employment in the District states declined seasonally during July. In Texas, unemployment rose to 180,500, which is 4.9 percent of the labor force. The Texas industrial production index increased sharply to 174 during July; total manufacturing rose 4 points, strongly supported by a 3-percent increase in nondurables output. District weekly reporting member bank statistics showed conflicting trends in the 4 weeks ended August 17, with demand deposits contracting and time deposits increasing. Gross loans (excluding interbank loans) were virtually unchanged, investment holdings decreased, and cash accounts rose moderately. Reserve positions of all member banks in the District eased considerably during July. 174 in July of last year. For the first 7 months of this year, sales were 1 percent below the same period in 1959. In the second week of August, department store sales in the District declined 2 percent from the first week. Sales in the 2 weeks ended August 13 were 6 percent DEPARTMENT STORE SALES (Percentag e chang e In retail value) Jul y 1960 from 7 months, Area June 1960 Jul y 1959 Total Ele ve nth District. . •••.... ...... -4 -5 -3 -2 - 3 Corpus Christi •••• ...•..•.. . •. ..•. •• Dalla s• • • •.• .• •• ••••••••••••••• · • • EI Pa so • •• .••.•••. •• ••• • . ••• •• • • • • - 1 - 15 Fort Worth .... ... . .. .. . ... ······•• -5 Shreve port, la . . • •. . .. ...... .. ..... Waco .• , ... .. • ..... •.. . •.••.••• .• Othe r cities .. . •... .. .... . . .. .... .. -6 - 16 Housto n • ••••••• • • • • •••••••••••••• San Antonio • • •••• • • ••• • ••••• • ••••• 2 - 6 - 7 - 16 - 6 -4 -7 -5 - 13 4 1960 from 1959 - 1 -3 2 - 13 -4 o -4 - 3 -6 3 BUSINESS REVIEW 9:1960 I INDEXES OF DEPARTMENT STORE SALES AND STOCKS Eleventh Federal Reserve District (1947·49 = 100) SALES (Da ily averag e) STOCKS (End of month) Se asonally Date Unadjuste d adjuste d Unadjusted 1959,July. • . . . . . . . . 1960, May......... June .... '" . • July.. .. .. .. .. 155 159 156 156 174 159 170 175 171 183 179 179p p - Se a sonally adjusted 180 185 192 189p Preliminary. below the similar period last year. End-of-July inventories at District department stores were virtually unchanged from June but remained above a year ago. Thus far in 1960, inventories have ranged 4 to 8 percent above the comparable months in 1959. Orders outstanding at the end of July were down 8 percent from June but were 3 percent more than a year earlier. While there has been little change in recent months in the proportions of consumer buying on a cash or a credit basis, charge accounts receivable at the end of July were 6 percent greater than on the same date last year, and instalment accounts outstanding were 14 percent higher. Collections on charge accounts during July comprised 43 percent of balances outstanding at the beginning of the month, compared with 47 percent in July 1959. Instalment collections were 15 percent, compared with 17 percent a year ago. The outlook for crop and livestock production continued favorable in most of the District during August. Rains improved cotton, grain sorghum, and pasture prospects in northwestern sections of the District, although they delayed harvesting of crops in early sections. Heaviest amounts of precipitation occurred along the Gulf Coast, in south Texas, and in the southern Edwards Plateau area. Some areas in Louisiana, western New Mexico, and Arizona are in need of moisture. Cotton harvesting is nearing completion in the Lower Valley and is well advanced in the Coastal Bend areas of Texas. Harvesting is increasing along the Upper Coast and is extending into the Blacklands. Grades of unharvested cotton in coastal areas have been lowered by rains, and heavy root rot infestations are expected to reduce yields throughout most of the Blacklands. Moisture has been well timed for dry-land cotton in the Southern High Plains, and in irrigated sections throughout the western portion of the District, the plants are fruiting heavily. I BUSINESS Is REVIEW 9:1960 In the District states, a crop of 6,440,000 bales is estimated, or 2 percent above last year's outturn and 6 percent greater than the 1O-year average~ Increases ranging from 2 percent to 20 percent were noted for Louisiana, Oklahoma, and Arizona; but decreases of 1 percent and 7 percent were forecast for Texas an? New Mexico, respectively. The Texas crop of an estImated 4,375,000 bales is still 7 percent above average. Prospective cotton production in the Nation, as of August 1, is placed at 14,471,000 bales, or 1 percent below last year's output but 6 percent above the 1949-58 average. Combining of grain sorghums has begun in the TransPecos area, and early fields are coloring in the Southern High Plains of Texas. Moisture conditions have been favorable in dry-land grain sorghum areas, and good yields are anticipated. Grain sorghum output in the District states, as of August 1, is indicated to be 281 million bushels, or one-tenth below that of last year. The Texas crop is also 10 percent less than in 1959. Corn picking is in progress in the Blacklands, and some of the crop has been harvested in south-central areas of the State. The bulk of the harvesting probably will not get under way until September. Corn output in the District states is estimated to be one-fifth below that in 1959. Rains delayed combining of rice, and some mature rice is lodging; recurring rains are making it difficult for farmers to drain fields. Rice production in Louisiana and Texas is indicated to be only slightly above last year's output. Harvesting of early south Texas peanuts is under way, and the crop is developing fairly satisfactorily in later areas. However, peanuts would CROP PRODUCTION (In thousands of bu she ls) ================================.~ TEXAS FIVE SOUTHWESTERN STATES' ----------------- 1960, Crop Cotton 2 ••• ••• ••• Corn ••••••• • • •• Winter whe at • •.• Oats .... .. ..... Barley . . .. . . . .. Ry e . •. .. . ... •. . Ric eS ••• •• ••••• . Sorghum grain ... Fla xseed ....• .. Ha y· ... . ..... .. Pe anuts G•• • •• • • • Irish potatoes (l • . • Swee t potatoes G• • Pe conss • • •• . .... 1960, e stimate d Aug . 1 4,375 32,592 87,728 28,730 8,572 198 13,3 44 248,714 1,160 1,998 187,000 2,547 1,320 40,000 Average 1959 4,416 42,728 59,850 26,473 5,752 190 13,136 277,666 357 2,340 206,635 2,562 1,495 32,000 Aug. 1 4,072 4 1,318 36,751 28,388 3,045 236 13,050 133,416 655 1,846 185,392 1,591 1,337 3 1,970 6,440 57,091 214,090 42,716 35,115 1,322 26,397 281,2 18 1,185 5,966 321,400 6,286 4,258 97,500 ] Arizona, Lo'uisiana , New Mex ico, O klahoma, and Texas. :J In thou sand s of bales. 3 In thousands of bags containing 100 pounds eac h. II. In thou sand s of ton s, G In thou sands of pounds. o In thou sand s of hundre dw e ight. SOURCE, United States Department of Agriculturo. -- Averag e estimated 1949·58 1959 6,327 72,139 157,687 42,764 29,598 1,188 26,046 311,098 435 6,463 351,435 5,565 6,615 66,400 1949·58 6,07 2 69,317 107, 189 43,937 16,278 968 25,356 154,380 821 5349 2B8:687 3,70 8 6341 69:877 -- benefit from additional moisture in the Cross Timbers area. Peanut production is placed at 9 percent below the outturn in 1959. Conditions in commercial vegetable areas in Texas varied. Harvesting of potatoes, onions, and carrots In the High Plains has been delayed because of rains. In the Pecos area, excessive rainfall caused heavy damage to cantaloupes, and supplies are expected to be light during the remainder of the season. Shipments of watermelons from the late areas continue to be fairly heavy. Vegetable conditions in the Winter Garden area and in the Lower Valley remain relatively favorable . ~re Range feed conditions in the District states are generally favorable, although moisture is needed in certain local areas. Spring lambs and calves are moving to market, but contracting of feeders and stockers for fall delivery has been slow. Between July 20 and August 17, the aggregate banking statistics of the weekly reporting banks in the Eleventh District reflected diverse trends, with a small gain in deposits, a moderate decline in investments, and a further weakening in loan demand. The net effect of these changes was substantial improvements in cash accounts and other assets and a small rise in total assets. Gross loans (excluding interbank loans) of the Weekly reporting banks were almost unchanged during the 4 weeks, with a substantial increase in loans to br?kers and dealers for purchasing or carrying securities ?elllg offset by moderate declines in commercial and Industrial, agricultural, and "all other" (consumertYpe) loans . During the comparable period last year, gross loans showed a sizable decline, mainly because of a reduction in loans to brokers and dealers. Between August 19, 1959, and August 17, 1960, commercial and industrial loans declined 2 percent, and agricultural loans, 25 percent. Consumer-type loans were about 4 percent above a year earlier. Investment accounts of the weekly reporting member banks were reduced $22.6 million during the 4 weeks ended August 17. Holdings of United States Governl11ent securities declined $28.7 million; the decline was concentrated in Treasury bill holdings as the banks fUrther adjusted their accounts after participating in the July Treasury financings. Holdings of Treasury notes and bonds maturing within 1 year and over 5 Years rose moderately, while holdings maturing after COND ITI ON STATISTICS OF WEEK LY REPORTING MEMBER BANKS IN LEAD ING CITIES Eleventh Federa l Res erve District (In thousands of dot la rs ) Jul y 20, 1960 August 19, 1959 ASS E TS Commercial and industria l loan s •............ 1,471 ,897 Agricultural loons •. •........... . .......... 30,391 1,474,707 30,789 1,503,709 40,545 13,604 21,965 274 18,486 768 15,353 9,585 178,4 24 10,23 1 179,502 7,611 183,713 128,42 8 125,740 347 64,713 204,498 748,753 121,479 137,200 347 80,892 203,883 756,3 27 129,849 1 15,655 34 22,588 213,406 718,409 Gross loans. . . . .. . . . . . . . . . . . . . . .. ..... 2,99 8,345 l ess reserves and unallocated charge·offs.. 55,346 3,014,117 55,285 2,951,640 50,763 Net loons . ... . . ...... . . . . . • . . . . . . . . . . . 2,942,999 2,958,832 95,599 33,33 2 147,362 24,418 74,806 825,834 297,461 352,612 61,817 840,724 281,374 346,525 Total inv estments . ... ................. .. 1,679,644 1,702,220 505,145 465,699 1,660 5 1,908 568,031 167,918 472,555 454,497 1,772 5 1,794 560,260 172,947 Augus t 17, 1960 It em loan s tc? brokers and d eo lers for pu rc ha si ng or carr Ying : U. S. Government securiti es .. . ........... . Other securities . ...... . ............... . Oth er loons for purc ha sing or carrying: U. S. Government sec uriti es . .. ...... ..... . Other securiti es . . .... . . ............... . loans to nonbank Anancla l in stitution s: Sales financ e, persona l Rnanc e, e tc . ...... . Savings banks, mtg e. cos., ins. cos., e tc .... . . loans to fore ign bonks . . .. ... . ........... . loans to dom estic commercial banks .. . .. .. .. . Real·estate loans .. ... .............. . .. . . . All other loans ... .... . . ................ . . Tre asury bills . .......................... . Treasury certiRcates of indebtedness . ....... . Treas ury notes and U. S. Gov ern ment bonds, in· eluding guaranteed obligations, maturing: Within 1 year . ........ .. .... ... . .... . . After 1 but within 5 years . .............. . Aft er 5 years . . .... . ... ...... . ... .. ... . Oth er securiti es . . ... . ................... . Cash items in process of collection . .. ....... . Balances with bonks in th e Unite d States . .... . Balances with bonks in foreign countries ... ... . Currenc y and coin . .. ...... . ............ . . Reserves with Federal Reserve Bank .. ....... . Other assets .. ... ....... . ............... . 2,900,877 --147,743 47,698 52,59:\ 842,873 301,725 335,466 1,728,098 --- 500,644 487,408 1,610 50,383 537,964 162,320 TOTAL ASSETS ....................... 6,383,004 6,374,877 6,369,304 L ILITIES AND CAPITAL ACCOUNTS IAB Demond deposit s Individuals, partnerships, and corporations .. . 2,878,107 144,256 Unite d States Government .... .. ... . . . ... . 224,071 States and political subdivisions . ......... . 948,685 Banks In th e United Stotes •• . ..... .... . . .. 19,156 Banks in foreign countries . . .... ......... . 42,760 Certifie d and officers' checks, e tc . ........ . 2,898,613 231, 129 2 10,182 895,847 13,295 43,856 2,937,955 250,177 190,5 16 938,728 19,811 64,827 Total demand deposits. . . . . . . . . . . . . . .. 4,257,035 4,292,922 4,402,0 14 Tim e de posit s Individuals, partnerships, and corporations . . . 1,092,677 8,455 Unite d States Government ..... .......... . 394 Postal savin gs .. ... .. .. .. ... .... ... .... . 237,729 States and politica l subdivisions . ....... . . . 4,794 Banks in the U. S. and foreign countries ... . . 1,050,381 8,45 5 394 225,5 84 3,678 1,068,379 7,035 42 1 173,430 2,873 Total time deposits..... . .. ...•.. . . . . .. 1,3 44,049 1,288,492 1,252,138 Totat d. posits .. . .. ...... . ..... . .... 5,601,084 Bills pa yabl e, redisco unts, etc........ .. . .... 127,70 9 All other liabilities. . . .. . . . . . . . .. .. ... . .. .. 94,272 Capita l accounts. . . . . . .. . . . . . . . • . . . . . . . . . 559,939 5,581 ,414 154,601 83,331 555,531 5,654,152 119,606 60,513 535,033 TOTAL L IABILITIES AND CAPITAL ACCOUNTS 6,383 1004 6,374,877 6,369,304 1 but within 5 years decreased. Non-Government investment accounts increased slightly. Total deposits of the weekly reporting banks advanced $19.7 million, as a moderate decline in demand deposits was concealed by a fairly sharp expansion in time deposits. In the demand deposit categories, reductions in the balances of ind ividuals, partnerships, and corporations and of the United States Government were BUS I NESS RE VI EW 9:1960 I banks. Compared with a year earlier, the reserve city banks showed the greatest improvement in reserve positions. RESERVE POSITIONS OF MEMBER BANKS Eleventh Federal Reserve District (Ave rag es of daily figures . In thou sand s of dollars) of August 3, 1960 5 weeks end ed July 6, 1960 550,220 548,112 2,10B 544,366 5,854 4,577 1,277 531,B72 529,821 2,051 525,436 6,436 11,4B9 -5,053 445,697 436,890 8,B07 396,228 49,469 15,639 33,830 44 1,179 434,415 6,764 395,B43 45,336 17,864 27,472 447,624 995,917 985,002 10,915 940,594 55,323 20,216 35,107 973,051 964,236 8,815 921,279 51,772 29,353 22,4 19 996,866 4 we e ks end ed Item Month July 1959 RESERVE CITY BANKS Totol reserves held . •..•. . .. '" With Fed eral Rese rve Bank .. . . Ca sh allow e d as reserves . ... . Requir ed rese rves . ...... . .... . Excess reserves . ............. . Borrowings • ... •... . . • ..... . .. Free reserves . . . . . . . ... ..•. . .. 549,24 2 543,855 5,3B7 37,699 -32,312 COUNTRY BAN KS Tofol re se rves held . . ......... . With Federal Rese rve Bank .. . . Cash allowed as reserves . ... . Required rese rves . .. ... . . .... . Excess reserves . ............. . Borrowing s• .......... • ..... .. Fre e reserv es . .......... .. ... . 407,525 40,990 10,054 30,045 ALL MEMBER BANKS Totol re serves held . ... .. . ... . . With Fed eral Rese rv e Bank .. . . Cash allowed as reserves .. .. . Required rese rve s . ... .. ..•.. . . Excess reserves • .............. Borrowings • ... . .... ... .. .... . Free res erve,; . .... ........... . 951,3BO 45,486 47,753 -2,267 NOTE . Reg ulation s pe rmitting me mbe r banks to count part of th eir vaul t cash in mee ting rese rve requirem e nts becam e e ffe ctive in Dece mb er 1959, and on January 1, 1960 the rese rve computation period for country me mber banks wa s changed to a biwe~kly basi s. Th erefore, monthly data comparable to year-earlier materia l are not available. almost offset by sharp gains in interbank accounts and accounts of states and political subdivisions. Within the time deposit sectors, the largest improvement occurred in accounts of individuals, partnerships, and corporations. Reserve positions of District member banks rose moderately during the 4 weeks ended August 3, 1960. Total reserves were almost the same as a year earlier, but required reserves and borrowings were noticeably lower; excess reserves and free reserves were much improved. Although all of the recent increase in excess reserves occurred at country banks, the decline in borrowings centered at reserve city banks. Thus, average free reserves continued to expand, with the gains nearly evenly split between country banks and reserve city NEW MEMBER BANK The First National Bank of Alvin, Alvin, Texas, a newly organized institution located in the territory served by the Houston Branch of the Federal Reserve Bank of Dallas, opened for business August 1, 1960, as a member of the Federal Reserve System. The new member bank has capital of $200,000, surplus of $100,000, and undivided profits of $100,000. The officers are: E. l. Boston, President and Chairman of the Board; Van D. Gillen, Executive Vice President and Ca sh ier; E. A. Cain, Assistant Cashier; and Lillie Belle LaBounty, Assistant Cashier. I BUSINESS REVIEW 110 9:1960 Total earning assets of the Federal Reserve Bank of Dallas declined $3 .8 million between July 20 and August 17. Although the Bank's holdings of Government securities advanced $17.7 million, there was a more than offsetting reduction of $21.5 million in discounts for member banks. Federal Reserve notes in circulation rose $10.5 million in this 4-week period and were about $14.5 million above a year earlier. Gold certificate reserves expanded even faster. 7 - 1/ 1\ ' Although spot crude oil supplies reportedly are limited in the '-... OIL and GAS Eleventh District, only a s~all , , m2 increase in crude oil productIOn , is anticipated in September. Output will continue to be limited to 8 days in Texas, but daily average production is scheduled to increase about 3 percent because of the shorter month. Texas production schedules were limited to 71 days in the first 8 months of 1960, compared with 86 days for the same period last year. Thus far this year, Texas has supplied 36.8 percent of total United States pr0duction, or well below the State's 45-percent share in recent years. In early August, daily average crude oil production in the District and in the United States was unchanged from the July levels. District crude oil production waS 2 percent lower than in August 1959, though production in the United States was moderately higher. Total petroleum imports increased slightly more than 4 percent during the 5 weeks ended August 12 and rose 21 percent over a year earlier. District crude runs to refinery stills for the [ust 2 weeks of August, averaging 2,379,000 barrels dailY, remained at the advanced July level and were 6 perce?t greater than a year ago. Daily average crude runs III the United States were near record levels in the first part of August but were only 3 percent greater than in August 1959. Crude oil stocks in the Nation, totaling 241 million barrels on August 12, decreased 3 percent from the month-earlier level and were 8 percent below a year ago. Comparable declines occurred in District crude oil stocks. Gulf Coast crude oil prices firmed, wHIt prices generally restored to the April 1960 level; ho~ ever, major oil companies reduced crude oil prices lil the Middle East. Demand for the four major petroleum products in the 5 weeks ended August 12 continued strong and was 4 percent above the comparable period last year. Because of increased refinery output, stocks of the four products rose 4 percent but remained lower than a year earlier. Gasoline demand, seasonally unchanged at 4.5 million barrels daily during the 5 weeks ended August 12, increased almost 3 percent over the year-earlier level. Gasoline stocks declined, and prices of regular gasoline advanced. The demand for distillate fuel oil decreased 6 perc~nt in the 5 weeks ended August 12, but residual fuel all demand increased 2 percent. Stocks of both prodUcts advanced, although they were still at significantly l~wer levels than a year ago. Distillate and residual fuel ad prices remain strong. The United States Department of the Interior has established the fourth-quarter residual fuel oil quota at 415 ,000 barrels per day, or roughly equal to the comparable 1957 rate but 5 percent less than in the last quarter of 1959. The quota is markedly lower than that requested by New England marketers. The total value of construction contracts awarded in the District states during June increased 13 percent over the preceding month but was 7 percent below a year ago. The very sharp month-to-month increase of 25 percent in "all other" awards more than offset a very minor decline in residential awards. The cumulative value of contracts awarded in the District states in the first 6 months of this year was about 5 percent lOwer than in the same period in 1959. All of the decrease occurred in residential awards, which were down 16 percent, while "all other" awards were 6 percent higher than in the first half of last year. T~e index of Texas industrial production during July lllcreased to 174, which is 3 points above the June level and 6 points above the July 1959 figure. Total manufacturing rose sharply from June. Durable goods ma?~fa~turing adva~ced slightly because of greater actiVIty III transportatIOn equipment, fabricated metals f~rniture, machinery, and stone, clay, and glass indus: tne~. Nondurable goods output rose substantially dunng July as the manufacture of chemicals, food, pet~o.leum, and other products increased. July mining actIVIty moved upward moderately for the first advance since February and compared favorably with the yearearlier leveL Nonagricultural employment in the five southwestern states declined seasonally in July to a level of 4,4~4,400,. which i.s 1.4 percent higher than a year earlier but IS very sbghtly below the revised June level. Both manufactur~ng and nonmanufacturing employment decreased slIghtly from June. Nonmanufacturing employment was higher than a year ago, but manufacturing employment was lower. Among the principal sectors of nonmanufacturing employment, construction held steady in July and was above a year earlier. Mining employment declined very little in July but was almost 6 percent below the July 1959 figure. Government and transportation employment decreased somewhat; however, all other nonmanufacturing sectors showed continued increases over the preceding month. Unemployment in Texas increased during July to 180,500, or 4.9 percent of the nonfarm labor force. During the last 2 weeks of July, however, insured unemployment declined about 6 percent, indicating some possible improvement. NONAGRICULTURAL EMPLOYMENT Five Southwestern States 1 INDUSTRIAL PRODUCT ION (Soa sonally odiusted indexes, 1947·49 ~ea and type of ind ex Percent change 1960 May 1960 July 1959 174 219 248 206 130 171 215 247 201 129 172 217 252 202 129r 168 205 236 191 131 166 165 171 163 128 292 166 165 17 1 16 2 126 290 167 166 17 4 16 2r 128r 286r 163r 163r 171r 159r 123 r 27 1 July 1960p June TEXAS ~otallndustrial production . ... D:tr~lb7'eanufactures . ',: ••.... N d manufacture" . ... .. . M~~ urable manufactures . .. . UN m'ng . •................. IT ED STATES ~~~a: industrial production . .. . Dur~ bieQ~ufactures •• ••••.•• N d onufactures • . . .... M~~n urable manufactures . ... ~~s·.: ::::: :::: :::::::: July 1960 from Numb er of p ersons = 100) Type of employment 4,414,400 785,900 3,628,500 249,600 Mining •... ,········· . 312,100 Construction . .. . .. . .... Manufacturing . .......... Nonmanufacturing • ....... utilities .•..... ····· . Trade ..... ······ · ··· . Finance .. ...... . ...... Service . .............. Government . .. . . . ... . . J 4,427,100 789,600 3,637,500 250,100 31 2,200 408,700 1,094, 200 200,500 543,600 82B,200 Jul y 1960e Total nonagricultural wage and salary workers .. Transportation and public 1960 ----July 1959r 405,800 1,095,500 20 1,700 545,500 81 B,300 Jun o ------June Jul y 1960 1959 4,354,200 787,900 3,566,300 264,700 311,600 -0.3 - .5 - .3 -.2 .0 1.4 -.3 1.7 -5.7 .2 409,500 1,065,800 195,300 529,600 789,800 -.7 .1 .6 .3 - 1.2 -.9 2.8 3.3 3.0 3.6 Arizona, loui siana, New Mexico, Oklahoma, and Texas. Estimated. Revised. SOURCES, State em ploymont ogoncios. Fedoro l Rese rve Bank of Dalla s. D - P Preliminary . ~O R evised. URCES : Board of Gove rnors of th o Federal Reserve System. r- Fedorol Rese rv e Bank of Da ll as. BUSINESS REVIEWI 9:1960 BANK DEBITS, END-Of-MONTH DEPOSITS AND ANNUAL RATE Of TURNOVER Of DEPOSITS CONDITION STATISTICS OF ALL MEMBER BANKS (Dollar amounts in thou sa nd s) (In millions of dollars) Debits to d eman d Eleventh federa l Reserve District Ar ea ARIZONA Tucson . ... . . .. ...... $ 217,550 LOUISIANA 78,204 Monroe .... ......... 315,940 Shreveport. . . . ...... NEW MEXICO 40,769 Roswell .•....... .... TEXAS 91,706 Abilene ......... . ... 225,4 85 Amarillo .... .. ... ... 197,688 Austin ............ . . 150,956 Beaumont •.......... 193,824 Corpus Christi .•.. . ... 16,620 Corsican a ........... Delles •••........... 2,630,913 330,706 EI Peso ..... ........ 748,462 Fort Worth ....... ... 82,659 Galveston . .. ........ 2,337,398 Houston •• ••.• .... . • 26,937 laredo ...... ....... 173,257 Lubbock ............ 64,201 Port Arthur • .. . ...... 52,412 Sen Angelo ......... 560,545 San Antonio • ..• ..• .. 23,405 Tex arkana :! ......•.. 78,279 Tyler ••............. 102,166 Waco . . . ...... . ... . 109,549 Wichite Fells •....... Totol-24 cities ........ $8,849,631 June 29, 1960 July 29, 1959 loans and disco unts ..... . ........... .. .. United Stotes Government obligation s...... Other securities .... . ...... .. .... . . ..... Rese rves with Federal Reserve Bonk .. . •... . Cash in vault e .... ..................... Bolances with bank s in the United States . ... Balance s with banks in foreign countries o . . . Cosh items in proc ess of collection . ........ Oth er asse ts c ..•..........•.......•.... 4,890 2,483 818 957 152 966 2 487 254 4,895 2,362 815 906 147 1,000 2 518 265 4,746 2,532 821 930 144 890 3 464 282 TOTAL ASSETse ............. . ....... 11,009 10,910 10,812 Demond d epo si ts of bonks . .•... ..... ... . Other demand d eposits.......... " ...... Time d e posits•.. ........ .••.. .. •... .... 1,021 6,531 2,235 1,075 6,358 2,215 991 6,561 2,132 Total d eposits•.... .. ... ......... • ... Borrowings o ........................... Oth er lia bilitiese ........... ..........•• Totol capitol accounts e ... . ...... .. .. ... . 9,787 141 125 956 9,648 183 137 942 9,684 135 83 910 TOTAL LIABILITIES AND CAPITAL ACCOUNTSe ..... .. . .... . ......... 11 ,009 10,910 10,812 Item Percent Annual rat e of turnov er chang e from Jul y 1960 July 27, 1960 Deman d d e posit s l deposit accounts l Jul y June Jul y 1960 1960 1959 July 31, 1960 July 1960 1959 Juno -14 -5 $ 127,062 20.5 22.7 21.4 -2 -6 -6 0 50,544 179,0 27 18.1 21.2 18.6 22.6 17.5 19.2 0 3 29,125 16.4 16.1 15.8 -7 1 -3 -8 2 4 -8 0 -9 - 1 -10 -3 -2 2 -3 -10 -6 -8 -4 -11 -10 -6 - 6 - 8 -4 5 -1 0 -11 -10 -10 -2 -3 -6 -12 -14 2 -14 -9 -15 60,490 115,853 142,671 95,660 105,558 18,32 1 1,167,052 167,746 368,596 61,224 1,286,170 21,522 104,746 41,109 47,371 368,113 16,446 57,204 68,189 98,968 18.0 23.8 16.8 19.0 22.4 10.7 27.2 24.4 24.7 16. 1 22.3 14.8 19.7 18.5 13.4 18.4 17.0 16.2 18.1 13.3 19.0 24.2 17.8 20.6 22.0 10.1 30.6 24.7 27.5 16.3 25.4 15.0 19.6 17.8 14.3 20.5 18.1 17.5 19.1 14.9 19.1 23.8 16. 1 19.4 21.6 9.4 28.0 24.5 27.0 17.3 24.8 14.6 19.9 18.7 15.7 19.7 17.6 18.1 19.8 14.6 -8 -6 $4,798,767 22.4 24.6 ASSETS 23.4 1 Deposits of Individuals, partnerships, and corporations and of states and political subdivi si on s. ~ Th ese flgures include only two banks in Texarkana, Texas. Totol debits for all banks in Te xarkana, Texas-Arkan sa s, including on e bank located in the Eighth Di strict, emounled to $50,032,000 for the month of July 1960. LIABILITIES AND CAPITAL ACCOUNTS e- Estimat ed. VALUE Of CONSTRUCTION CONTRACTS AWARDED (In thousends of dollers) -= 1960 FIVE SOUTHWESTERN STATES' .. ......... All other .......... UNITED STATES ...... Resi d ential . .. ... . All other ...... .. .. (In thou sends of dolle rs)' 382,649 144,601 238,048 3,472,276 1,482,668 1,989,608 338,6 11 147,535 191,076 3,315,489 1,450,119 1,865,370 Are a and type Resid entiol ........ CONDITION Of THE fEDERAL RESERVE BANK Of DALLAS Mey 1960 Jun e 1 January-June June 1959 1960 1959 410,911 2,011,126 160,310 831,570 250,60 1 1, 179,556 3,659,017 17,573,828 1,761,621 7,600,439 1,897,396 9,973,389 2,110,607 992,338 1,118,269 18,875,544 8,884,451 9,991,093 Ari zon a, louisiana, New M exico, O klahoma, and Te xas. SOURCE, F. W. Dodg e Corporetion . August 17, 1960 Item Total gold certificate reserves .............. . Discounts for member banks ... ............ . Other discounts and advances ............. . U. S. Governm ent securities .... . .... ... . ... . Total earning ass ets.•.................... Member bonk reserve depositl ..... .. . . .... . Fed eral Reserve notes in actual circu:alion •. .•• August 19, 1959 July 20, 1960 725,545 11,806 675,180 33,342 1,081,363 1,093,169 962,524 806,253 1,063,673 1,097,015 948,604 795,704 BUILDING PERMITS 672,604 34,110 1,057,452 o o = o VALUATION (Doller emounts in thousends) 1,~~~}% . Percent change 791,746 July 1960 NUMBER from - 7 months, Area DAILY AVERAGE PRODUCTION Of CRUDE OIL July 1960 7 meso 829 6,090 353 3,300 July 1960 1960 July June 1960 1959 1960 from 1959 $ 22,615 -45 -59 5 ARIZONA (In thousends of berre ls) Tucson ... . ...• $ 2,438 - 1960 7 mos. LOUISIANA Chenge from Area ELEVENTH DISTRICT. ..•.... Texa s.............. ·.· . Gulf Coest ... ...... .. . West Texa s ..... . . .... Eest Texes (prop er) .•... Panhandl e ............ Rest of Stete .......... Southeastern N ew Mexico .• Northern louisiana • ....... OUTSIDE ELEVENTH DISTRICT . UNITED STATES ............ SOURCES: 1 ::3 July 1960' 1960' Jul y 1959' 2,800.7 2,436.0 451.1 1,074.5 122.0 107.8 680.6 252.2 112.5 4,033.4 6,834.1 2,826.9 2,458.3 457.9 1,083.4 122.8 107.9 686 .3 255.2 113.4 3,980.7 6,807.6 2,864.8 2,487.7 446.9 1,124.9 133.6 108.7 673.6 253.6 123.5 3,919.4 6,784 .2 June July 1959 - 1.0 -1.0 - 1.5 -.8 -.7 -. 1 -.8 -1.2 -.8 1.3 .4 -2 .2 -2. 1 1.0 -4.5 -8.7 - .8 1.0 -.6 -9.0 3.0 .7 June Estimated from Am e rican Petroleum Institute weekly reperts. United States Bureau of Mines. BUSINESS REVIEW 12 1960 9:1960 Shreve port •.. . 1,638 16,230 -51 -43 -7 TEXAS Abilene .•. . •.• Amarillo ...... Austin ........ Beaumont •.... Corpus Chri sti.. Delle s.. . ..... EI Pe so ....... Fert Worth .•.. Galveston . . ... Houston ..•... Lubbock ...... Pori Arlhur .... San Antonio ... Waco ...... .. Wichite Fells .. Total - 17 cities .. 102 252 253 347 56 2,191 536 649 133 1,146 173 175 1,109 211 172 1,035 2,212 2,061 1,995 426 15,160 4,220 4,689 880 8,673 1,625 1,260 7,958 1,690 1,773 1,738 3,307 4,205 1,064 774 13,204 4,099 3,403 540 53,287 2,366 957 3,680 986 5,226 12,279 21,712 28,188 8,356 7,227 81,975 27,651 29,935 4,622 171,939 25,106 6,745 32,409 10,753 18,071 -24 9 18 -39 -30 17 3 -10 105 59 -13 26 -20 - 18 154 -53 22 9 -70 -84 -28 -30 -72 160 165 -63 33 -45 -18 400 _34 _4 -17 _34 -49 _25 _24 _2 1 140 34 _35 4 -16 0 79 8,687 65,047 $ 102,912 $525,813 23 3 _6 -
@FedFRASER