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BUSINESS
REVIEW
SEPTEMBER 1962
Vol. 47, No. 9
SOUTHWESTERN FARM AND RANCH INCOME
AND GOVERNMENT ASSISTANCE
Southwestern agriculture has been subject to many diverse
influences during the past 10 years, including the effects of war,
capricious weather, and ever-growing technological changes.
During the early 1950's, the Korean War caused sharply increased
demands and higher prices for agricultural products, but these
forces quickly subsided as the emergency passed. During the mid1950's, a severe and prolonged drought throughout the Southwest
retarded crop output and forced the liquidation of breeding herds.
As more favorable moisture conditions returned in 1957, livestock
inventories expanded, and crop and livestock production moved
rapidly upward. The trend in southwestern farm and ranch income
during the 10-year period tended to parallel the swings in prices
and production. From the high levels induced by the Korean
War, farm and ranch income declined throughout the drought
period and, then, rebounded sharply when moisture conditions
improved.
During the postwar period, Government programs also have
been important influences upon farm and ranch income. In fact,
concerted public action to improve agricultural income was first
begun as an emergency measure in the depression of the 1930's;
policies were shifted during World War II to encourage high output to feed tbis Nation and its allies. Following World War II,
Government assistance was scheduled to be modified and reduced
gradually in anticipation of more normal peacetime food and fiber
demands. This proved to be a difficult adjustment because of the
basic nature of the competitive agricultural industry and because
of the developing trends in farm and ranch income and expenses.
FEDERAL
RESERVE
DALLAS ,
BANK
OF
DALtAS
TEXAS
This publication has been digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
REALIZED GROSS INCOME AND NET INCOME FROM FARMING, 1952-61
Five Southwestern States 1
(In millions of dollars)
Realized gross farm income
Year
Cash
receipts
from farm
marketings
Gross rental
value of
farm
dwellings
Government
payments
1952 ...• .. ....••.. ...
1953 • . •••. . ..•• . .. . .•
1954 •••••. . .•••..•. . .
3,881
3,457
3,407
41
26
45
255
219
186
1955 •.....• . . . .•.• . .•
1956 •.••••... . •.•••. .
1957 • . •.• . ..•.. ... •• .
1958 ••••. .. .••.•. . .••
1959 .••..•••• . •.•••••
3,243
3,319
3,054
3,981
3,982
41
89
193
209
140
1960 ....••••.•••••••.
1961 •. . ••••..•••••...
3,972
4,188
126
207
Tota l
Farm
production
expenses
Realized
net farm
income 2
Net change
in farm
inventories
Tota l
net farm
income 2
172
180
163
4,349
3,882
3,801
2,546
2,378
2,365
1,804
1,504
1,436
-17
-40
-33
1,786
1,464
1,403
176
164
168
143
123
150
128
149
171
176
3,609
3,70 1
3,562
4,504
4,420
2,412
2,404
2,540
2,907
3,007
1,198
1,297
1,023
1,597
1,413
64
-224
206
87
76
1,261
1,073
1,228
1,684
1,489
112
106
164
161
4,375
4,661
2,969
3,138
1,405
1,523
72
175
1,477
1,698
Value of
home
consumption
Arizona, louisiana, New Mexico, Oklahoma, and Texas.
Of farm operators.
NOTE. - Details may not add to totals because o f rounding.
SOURCE: United States Department of Agricult ure.
1
2
Particularly after the Korean War, farmers and
ranchers were squeezed between a general upward
movement in production costs and a general easing of
prices for agricultural products. Production expenses
of southwestern farmers and ranchers during 1961
totaled about $3.1 billion, or almost 23 percent above
the level 10 years earlier, and absorbed a larger proportion of total cash income. Farm production expenditures advanced with the rise in per unit costs for such
items as labor, repairs, services, and farm supplies. Furthermore, the trend toward larger and more commercialized farms and ranches resulted in the purchase of a
greater portion of the production items from off-farm
sources. As mechanization progressed, machinery became larger and more complicated and expensive, and
depreciation charges became a more important production expense.
Overhead costs, as well as the costs for many of the
purchased nondepreciable inputs, are relatively insensitive to changes in the prices received by fanners and
ranchers. Thus, the decline in agricultural commodity
prices without a corresponding reduction in costs has
curtailed net farm and ranch income. Much of the governmental action has been directed toward lessening
the downward pressure on farm commodity prices in
order to maintain or increase total agricultural income.
Gross farm and ranch income, amounting to about
$4.7 billion in 1961, can be conveniently segregated
into ' two broad groups. The first, composed of cash
IBUSINESS
12
REVIEW
9:1962
receipts from marketings of farm products and Government payments made directly to farmers and ranchers, is cash income. The other group, consisting of the
value of commodities produced and consumed on the
farm and the rental value of farm dwellings, is nonmoney income.
Cash sources of income accounted for about 92 percent of the realized gross farm and ranch income of
southwestern farmers and ranchers during the past
decade. Nonmoney income during the 10 years has
shown a gradual decline as a proportion of the total
realized gross income of southwestern farmers and
ranchers and amounted to only $267 million in 1961.
The value of home-produced foods and fuel consumed
on the farm or ranch has decreased materially, reflecting
the reduction in the number of persons on farms and
ranches and the generally lower average prices fo~ farD1
commodities.
Ca'sh receipts are by far the most important agricultural income source, accounting for almost 90 percent
of both cash and nonmoney incomes of southwestern
farmers and ranchers during the past 10 years. ThiS
proportion has varied within relatively narrow limits,
ranging from 86 percent of the total in 1957 to 91 percent in 1960. In 1961, cash receipts reached a record
of almost $4.2 billion but were only $200 million above
the total in each of the previous 3 years.
Direct Government payments averaged less than 3
percent of total realized gross farm income during the
1952-61 period, with the proportion rising from around
1 percent in the early part of the period to slightly more
than 5 percent in 1957, when cash receipts were unusually low. Government payments to the Southwest's
farmers and ranchers represented 14 percent of all such
payments made in the Nation in 1961 , and this proportion has shown little change from a decade earlier.
Government Programs and Cash Receipts
Cash receipts reflect the quantities of agricultural
products marketed and the prices at which they are sold.
Southwestern farm commodity prices have declined, but
the physical volume of marketings has increased sharply
since the drought of the midfifties. Thus, the sharply
higher cash receipts from farm and ranch marketings in
the Southwest since 1958 have resulted primarily from
increased production rather than from higher prices.
(Production and marketings for a particular year are
not strictly synonymous, as sales may consist of crops
and livestock which were held over from previous prodUction periods.)
A major portion of governmental efforts to maintain
or increase farm income has been through price supports and acreage controls. These mechanisms, controlling output in order to influence prices, were believed
to be well suited to many of the major agricultural
commodities. Since the demand for most agricultural
products is highly inelastic, prices could be influenced
by a relatively small decline in production. In the Southwest, where a significant portion of the cash income is
derived from crops covered by Government programs,
price supports are very important, as shown in the accompanying table.
The output-restricting measures which were started
in the 1930's continue to be a major feature of governmental agricultural price and income programs, although, as will be mentioned later, additional programs
Were initiated to supplement and complement this basic
approach . New adaptations were needed because subsequent events demonstrated that the maintenance of
prices encouraged a larger output on the remaining
acreage and surpluses of many major crops developed.
After successive reductions in acreage allotments, there
Was resistance toward acreage cutbacks as the only
means of restricting output, and this attitude was a factor in the development of other approaches, such as
the Soil Bank and feed grain and wheat programs. The
problems associated with disposing of accumulated surpluses are difficult, and numerous measures have been
instituted to reduce these stocks in a manner that would
PRICE SUPPORT EXTENDED ON SELECTED CROPS,
AVERAGES 1951-60
Five Southwester.n States'
Price support extended:!
Commodity and unit
Production
(In thousands
of units)
As volume of
production s
(In thousa nds
of units)
Cotton, upland (bales} .• ••...••• •.•.•
Barley (bushe ls) .•.•....•••• •••• ••.•
Beans, dry edible (hundredweight} •••••
Corn (bushels) ••••.••...•..•.••••••
Flaxseed (bushels) ••....••....•. . •••
Grain sorghums (hundredweight) ••••••
Oats (bushels) • . •.........••••.••••
Rice (hundredweight) ••............ • •
Rye (bushels) ..................... .
Soybeans (bushels) •••• • ••• ••• • •.• ••
Wheat (bushels} •••.••.•. • ..••..••.•
6,110
20,BB5
164
60,410
546
1B3,780
42,614
26,179
1,071
3,966
117,584
2,297
3,BOI
32
6,645
123
48,518
1,449
7,042
239
452
39,626
1
As
percentage
of p ro duction
(Percent)
38
18
20
11
23
26
3
27
22
11
34
Arizona, Louisiana, New Mexico, Oklahoma, and Texas.
~ Comprised of loans made, purchase agreements entered into, and purchases of
commodities not under purchase agreements.
:1 Based upon national proportions .
SOURCE : United States Departme nt of Agricultur •.
not disrupt markets for new crop supplies or damage
relations with friendly foreign countries.
Some livestock products also have received pricesupport assistance, particularly dairy products, mohair,
and wool. The National Wool Act of 1954 provides for
direct payments to wool and mohair producers rather
than an indirect price-support program, which had previously been in effect. This change had the effect of
reducing cash receipts to wool and mohair growers and
increasing Government payments. On occasion, Government purchases of meat and poultry products for
school lunch programs and other welfare purposes and
the acquisition of livestock during periods of severe
drought or market glut have benefited livestock
growers.
AGRICULTURAL PRODUCTION. CASH RECEIPTS.
AND PRICES RECEIVED
FtVE SOUTHWESTERN STATES
r~~c
:,w.
_ _ _ _----r_"-""'7c:..: ••,,,, 0)'---'-_ __ _~ ~3b
II' " -."" 'O,,,,
CASH RECEIPTS
FROM FARM MARKETINGS ~
---1-------1-
120
110
---
l-·-·-·-·-·-·
\ , - - - - - l - - - - - fJI ,\ -\
0"'.
L
-
120
P
- - - - -1110
l
-.
\\ -.-._'''''l,..
"
\
\
\.- . . . . .
90 1--- --=·........
...
1 - I - - - - --I tOO
I
'.'-"J,," "
................
,~
-,'"
I
.. ----,
" ',,,,,'
;, - - - -, -
"'- PRICES RECEIVED
FOR FARM PRODUCTS
,,' 90
'*
80 L-~-~--L--L-~-~-L--L-~ 80
1952
1955
)958
t96t
... Tuelonly.
p,Pfl llminory,
SOURCES: U. S, O,porlmlnl 01 AQriculiun .
Fld,rol RII'tll' Bank of Dallal
BUSINESS REVIEW'
9: 1962
Government Payments
Government payments not only have provided a
direct supplement to southwestern farm and ranch income but have fostered adjustments in land use and
output. Such payments are selective devices in that they
are disbursed to farmers and ranchers for definite purposes and are received by individuals growing specific
commodities or complying with .particular types of programs. As a consequence, Government payments are of
greater significance to some producers than to others.
Government payments assumed some importance for
the first time during the depression and drought period
of the e.arly .1930's. Payments were made for plowing
up or divertmg crop acreages, for destroying livestock
in drought-stricken areas, and for supplementing incomes lowered by severely depressed prices. During the
decade of the 1930's, Government payments in the
southwestern states reached a peak of $170 million in
1939, comprising about 17 percent of the region's total
farm and ranch cash income.
Government payments decreased during World War
II and throughout the 1940's and the early 1950's.
During the decade of the 1940's, Government payments
averaged about 3 percent of total cash income from
farming and ranching in the Southwest, reflecting the
smaller payments and the sharply improved level of
cash receipts from marketings. Payments during World
War II ~ou~d have declined to a greater extent except
for specIal CIrcumstances. Consumer price controls had
been enacted to prevent inflation during World War II,
and Government payments were made to producers of
GOV ERNM ENT PAYMENTS
TO FA RMERS AND RANCHE RS
FIVE SOUTHWESTERN STATES
1961
SOURCE: U.S. Dlportmlnt 0' Alllrie ullur"
I B U S I NESS
14
REVIEW
9 :1962
selected livestock products in order to encourage higher
output of meat and dairy products. Following the end
of hostilities, these "incentive" payments were discontinued, and Government payments decreased abruptly.
During the past 10 years, Government payments have
regained greater importance. In 1953, Government
payments to southwestern farmers and ranchers, at almost $26 million, were the smallest since such payments
were begun in 1933. Payments rose sharply in 1957
with the start of the Acreage Reserve and Conservation
Reserve programs of the Soil Bank and reached a peak
of $209 million in 1958. After declining considerably
in the next 2 years, such payments increased to $207
million in 1961. In recent years, payments have been
made under five broad programs, two of which have
been in effect since the 1930's; three of the programs
were begun in the mid-1950's or later. These five programs pertain to conservation, sugar, wool, the Soil
Bank, and feed grain and wheat.
The contribution made to total state farm and ranch
cash income by Government payments in 1961 varied
from 1 percent in Arizona to 4 percent in Louisiana and
over 5 percent each in New Mexico, Oklahoma, and
Texas. These variations reflect, in part, the nature and
volume of agricultural production in the individual
states and the types of agricultural programs for which
Government payments are made. For example, the bulk
of the payments under the sugar program has been made
to Louisiana fanners, inasmuch as the other states have
little sugar cane or sugar beet production; and Texas
producers have received the largest portion of the wool
payments because of the greater relative importance of
the enterprise in this State than in the other southwestern states.
Government payments for various conservation activities during the past few years have centered in three
programs - the Agricultural Conservation Program,
the G~'eat Plains Conservation Program, and the ConservatIOn Reserve of the Soil Bank. The Agricultural
Conservation Program was begun in the 1930's but the
Great Plains Conservation Program and the C~nserva
tion Reserve of the Soil Bank were not authorized until
1956.
These three programs have some common features.
Payments are made to cooperating farmers and ranch~rs on a cost-sharing basis for establishing and carrymg out conservation practices, such as controlling
erosion,. establishing permanent vegetative cover,. and
conservmg water. The payments vary according to the
,
type of practice carried out by the cooperator, usually
approximating 50 percent of the cost of instaHing such
a practice but not exceeding 80 percent of the cost.
Government payments to wool and sugar producers will
be discussed together, and payments to wheat, feed
grain, and other producers will be treated as a group.
Sugar and wool are two commodities which are imThe major differences among the three conservation
ported in substantial quantities. As a "deficit producing
programs are the areas of the country in which the programs are applicable and the objectives of each of the area," the United States has tended to protect domestic
programs. The Agricultural Conservation Program is producers from foreign competition in order to insure
nationwide, and any cooperating farmer or rancher can the preservation of an efficient nucleus of these indusparticipate if approved practices are carried out. On the tries in the event a national emergency impaired outside
other hand, the Great Plains Conservation Program is sources of supply. For many years, tariffs were the
restricted to cooperators in all or parts of 11 Great Plains principal means of protecting the domestic industries.
states. In the southwestern states, only the farmers and Since 1937, Government payments have been provided
ranchers in designated counties of New Mexico, Okla- as an income supplement to sugar producers who keep
homa, and Texas are eligible to participate. The Great within established quotas, and tariffs have been modified
Plains Conservation Program was authorized to provide on sugar imported from foreign sources. Payments
additional incentives to encourage proper land use in under the sugar program in the Southwest averaged
areas which are highly susceptible to wind and water around $6.3 million during the past decade.
In the case of wool, new legislation was enacted in
erosion and prolonged periods of low rainfall.
1954 to provide payments to wool growers; as a result,
The Conservation Reserve of the Soil Bank, a nation- the need for income assistance through traditional pricewide program, is aimed at the permanent diversion of support measures has been eliminated, and reliance
cropland into noncrop uses under long-term contracts. upon tariffs has been reduced. The wool legislation proUnlike the other two programs, the Conservation Re- vides for incentive payments to encourage the domestic
serve provides for annual rental payments to coopera- production of approximately 300 million pounds of
tors as an income supplement during the contract shorn wool annually. The payments are made from the
period, in addition to sharing the costs of establishing duties collected on imports of wool and wool products.
approved practices. Furthermore, cropland in the Con- Wool producers receive payments designed to make up
servation Reserve cannot be used for crop or livestock the difference between average prices received during
production.
the season from the sale of wool in the market and the
national incentive price. Disbursements under the Wool
Since the three conservation programs have been in
operation, disbursements by the Federal Government to Act have averaged about $11.9 million annually since
cooperators in the Southwest have totaled almost $1.4 the program began in 1956.
billion, of which around one-third was paid from 1952
Several programs have been implemented in which
through 1961. During this decade, payments under the direct Government payments are made to producers as
Agricultural Conservation Program accounted for the an adjunct to a regular price-support program. The
largest portion of the disbursements, 80 percent; the Acreage Reserve of the Soil Bank in 1956-58 was the
Conservation Reserve payments reached almost 18 per- first major attempt to encourage the diversion of addicent; and 2 percent were disbursed in connection with tional allotted acreages of some crops. In 1961, a volunthe Great Plains Conservation Program. More than tary feed grain acreage diversion program was develfour-fifths of the payments under the Conservation Re- oped, and a similar but mandatory plan was begun for
serve program were expended for rental payments, 1962-crop wheat.
rather than for cost sharing on conservation practices.
Both the feed grain and wheat programs provide for
Government payments to producers for diverting corn,
The special commodity programs in 1961 for which
Government payments were made included those for grain sorghum, barley (started in 1962), and wheat
Sugar, wool, wheat, and feed grains. During the 1956- acreages into conservation uses, including summer
58 period, payments also were made to southwestern fallow. A mandatory diversion of 20 percent of the
producers under the Acreage Reserve program of the feed grain base acreage is required in order to be
Soil Bank for diverting acreages of upland cotton, pea- eligible for price supports, and for 1962-crop wheat, 10
nuts, rice, and wheat. Because of certain similarities, percent of the allotted acreage has to be placed into
BUSINESS
9: 1962
conservation uses. Additional acreages of both feed
grains and wheat can be diverted on a voluntary basis.
protection from competition, and welfare considerations - have been the basis for providing various
special programs not only to agriculture but also to
several other industries.
Under the feed grain and wheat programs, provision
is made for an advance payment to cooperating farmers
Any public program to lessen the impact of economic
amounting to one-half of the total payments due them.
forces on any group - farmers, the unemployed, vetThus, in 1961, farmers received not only payments for
diverting 1961 feed grain acreage but also about one- erans, small businessmen, home buyers - is subject,
half of the payments due them for diverting acreage in varying degrees, to costs and benefits that are measunder the 1962 program. Similarly, partial payments urable and those that are subject to less precise evalualso were made during 1961 to growers in connection ation. Some of these are visible, while others are not as
with the 1962-crop wheat diversion program. This com- easily seen. Often, the public is the major recipient of a
bination of payments was partly responsible for the large part of the benefits from special programs. Agricultural research and education receive considerable
sharp rise in Government payments in 1961.
public financial support. If the research and education
Total payments made to southwestern farmers in stimulate greater production, the increased output
1961 under the 1961 feed grain program and the 1962 results in lower commodity prices, and benefits may be
feed grain and wheat programs amounted to $80.3 mil- passed onto the public. A major deterrent to lower
lion, or about 39 percent of the total payments made prices resulting from increased output has been govdirectly to the region's farmers under all types of Gov- ernmental programs which tend to keep prices above
ernment programs. Since payments under the Soil Bank free market levels. Some of the conservation programs
will diminish over the next few years as the Conserva- are designed to encourage proper land use and may
tion Reserve contracts expire, payments under such pro- benefit persons other than those directly receiving the
grams as those for wheat and feed grains could become conservation payments. Nonfarm people may profit
from conservation measures in terms of reduced
an increasingly larger proportion of the total.
flooding and siltation of streams and reservoirs, imConclusion
proved wildlife habitat, and better recreational areas.
The agricultural price-support and payments programs are not unique in American industry, since direct
and indirect Government assistance is given to many
other segments of the economy. Government assistance
to agriculture is perhaps better recognized because
a large portion of the cost associated with agricultural
programs is often more clearly documented while assistance to other economic groups may be less obvious.
Many similar reasons - such as national security,
BUSINESS REVIEW
6
9:1962
The current intermixture of price supports, acreage
diversion, and Government payments points up the
complexities involved in dealing with an industry, composed of many small units, in which productivity has
risen dramatically but income has lagged behind other
economic sectors. The productive potential that is still
untapped in American agriculture suggests that entirely
satisfactory solutions to the agricultural income, price,
and production problems may be several years away.
BUSINESS
REVIEW
BUSINESS~ AGR/,CULTURAL, AND FINANCIAL CONDITIONS
Eleventh District department
store sales, seasonally adjusted,
rose 5 percent during July and
were 11 percent above July
1961. Cumulative monthly sales
through July 1962 were 8 percent above the comparable period last year.
Daily average crude oil production and drilling
activity in the District in July and early August failed
to vary significantly from the month-earlier levels.
District daily average crude oil output is expected to
expand in September as a result of increased louisiana and New Mexico allowables and the impetus of
the shorter month.
July new car registrations in four major Texas
markets decreased 1 percent from the June total but
were 33 percent higher than in July 1961. ' Registrations during January-July this year were 35 percent
above the same period in 1961.
The District's weekly reporting member banks
showed an increase in deposits during the 4 weeks
ended August 15, but loans and investments receded.
There was little change in commercial and industrial loans during the period.
Pasture feed and crop prospects in the Southwest
Were reduced by the hot, dry August weather. Cotton
production in the District states is estimated to be
slightly above the 1961 output. Outturns of all the
other major crops except rice and sweet potatoes are
below last year. Cattle marketings have been increased because of drought conditions.
The Texas industrial production index in July was
111 percent of the 1957-59 base, or 2 points below
June. Nonfarm employment in the District states decreased, as is usual for July. Unemployment in Texas
declined. Construction contracts in the five states
rose again during June, and the total for the first
6 months of 1962 was at a record level.
Seasonally adjusted department
store sales in the Eleventh Federal Reserve District in July rose
5 percent over June and were 11
percent above a year earlier. The
adjusted index of July sales, at 112 percent of the 195759 average, compares with 107 percent for June and
101 percent for July 1961.
The unadjusted dollar volume of District departlUent store sales in July was 2 percent greater than in
INDEXES OF DEPARTMENT STORE SALES AND STOCKS
Eleventh Federal Rese rve District
(1957·59
= 100)
~================================
SALES (Daily average)
Date
Unadjusted
Seasonally
adjusted
1961, Jul y...... .. .. .
1962, May ........ ..
92
104
96
102
lOt
lOB
107
112
June ••••••••••
July ..... ... .. .
P-
Preliminary.
STOCKS (End of month)
Unadjusted
97
112
lOB
109p
Seasonally
adjusted
101
114
115
, 114p
DEPARTMENT STORE SALES
(Percentage change In retail value)
Jul y 1962 from
Area
Total Eleventh District .... .. ... .
Corpus Christi...... .. . . . . . . . .
Dallas......................
EI Paso. . . . . . . . . . . . . . . . • . . . .
Fort Worth ..................
Houston. • • . . . . . . . . . . . . . . . . .
San Antonio ......... .... : ...
Shreveport,La...............
Waco......................
Other cities. • . . . . . . . . . . . . . . .
7 months,
1962 from
1961
June
1962
Jul y
1961
,2
-B
2
-5
-1
9
1
-1
-3
0
11
-7
-3
11
27
13
15
17
15
7
15
10
6
11
B
B
B
20
12
11
June, although July had one less trading day. Com-'
pared with sales in July last year, in which fue number
of trading days was the same, unadjusted sales this July
were 11 percent higher. Cumulative District department store sales for the year through August 11 were 8
percent above the corresponding period of 1961.
July registrations of new cars in four major Texas
markets slipped 1 percent below the June total but were
33 percent more than in July 1961. Cumulative regisBUSINESS REVIEW
9':1962
I
71
trations for the first 7 months of 1962 were 35 percent percent above the 10-year (1951-60) average. All of
higher than in the like period of 1961. In the June-July the District states report increases over last year except
comparison, new car registrations advanced 7 percent Arizona and New Mexico, which show decreases of 1
in Houston, were unchanged in Dallas, and declined 7 percent and 3 percent, respectively. The Texas crop is
percent and 16 percent in San Antonio and Fort Worth, almost unchanged from 1961.
respectively. Compared with a year ago, Dallas led
Harvesting of the District's grain sorghum crop is
the individual markets in registration gains in July with gaining momentum, and combining is ahead of a year
an increase of 42 percent, followed by increases of 36 ago. Indicated output of grain sorghums in the District
percent in Houston, 23 percent in San Antonio, and 11 states, as of August 1, is 9 percent below the 1961 outpercent in Fort Worth.
turn. Peanut production in south Texas has been reduced by lack of moisture, but the Cross Timbers crop
Extremely hot, dry weather over
many parts of the District during is making good progress. Peanut output in the District
August reduced pasture feed and states is expected to be 3 percent below last year. Comcrop prospects. In south, central, bining of rice in Louisiana and Texas is well under way,
and many coastal areas of Texas, and production in these states is estimated to be about
lack of moisture has caused pastures to wilt, necessitat- one-fifth greater than the 1961 output.
ing an increase in cattle marketings. However, late
Corn picking is well advanced in south Texas and is
in the month, drought-breaking rains fell over many progressing rapidly in the Blacklands. Al'though dry
parts of the District, and prospects have been bright- weather has slowed harvest of vegetables in central and
ened significantly.
east Texas, land preparation for fall and winter cropS
Cotton harvesting is nearing completion in the Lower is active in the Laredo and Rio Grande Valley areas. In
Rio Grande Valley of Texas and is active in the Coastal the District states, the 1962 outturns of corn, oats, barBend and the Blacklands. Cotton in the High Plains is ley, rye, flaxseed, hay, Irish potatoes, and pecans are exmaking good growth, and bolls in early fields are open- pected to be smaller than in the preceding year, while
ing. The crop is fruiting heavily in New Mexico, but the sweet potato crop is indicated to be larger.
bollworms have caused damage in some counties. For
Grass on ranges and pastures over the northern half
the District as a whole, progress in cotton harvesting is of Texas has cured rapidly but is still furnishing good
slightly ahead of that made by this time last year.
grazing. Forage conditions in the southern half of the
State and in parts of New Mexico and Arizona are poor.
Based on August 1 conditions, cotton production in
the District states is estimated at nearly 6.9 million However, cattle remain in generally good condition
bales, or 2 percent more than the 1961 output and 13 throughout the District, although marketings have been
stepped up in some areas because of shortages of forage
and stock water.
CROP PRODUCTION
.."""...' ''"..... ...."....""."'. . "
.,
(In tho usands of bushe ls'
FIVE SOUTHWESTERN STATES!
TEXAS
1962,
1962,
Average
e stimate d
Crop
August 1
1961
195 1-60
August 1
1961
195 1-60
Cotton:! •• •• • ••••
4,800
26,216
43,696
17,329
3,570
308
15,343
216,468
190
2,294
213,560
2,505
1,040
17,000
4,786
31,890
84,870
28,998
10,104
39 1
11,452
229,635
1,610
2,424
224,960
2,776
770
20,000
4,050
35,558
38,874
26,256
4,338
252
13,456
160,532
485
1,875
162,238
1,763
1,150
31,470
6,885
39,306
121,553
26,0 15
22,426
1,011
30,193
247, 104
190
6,618
373,310
5,289
5,222
50,700
6,762
48,044
205,664
45,1 82
42,599
1,183
24,963
272,278
1,610
7,108
385,865
6,108
4,43 1
72,250
6, 111
56,075
118,333
42,6 14
20,884
1,020
26,179
183,779
485
5,572
270,95 1
4,011
5,864
73, 168
e stimate d
Corn . . . . . . . .. . .
Winter wheat . . ..
O ats • ... .. . . ...
Barley • ••• •• •• •
Rye .... . .. . . . ..
Rice3 ••••
• • • • • • •
Sorghum groin •. .
Flaxseed •• • • • • •
Ha y· .. . . . .. . ...
Peonuts5 • • • • • •• •
Irish potatoes 6 •
••
~:c~~s~~t.a.t~~~~.:
1
2
Ar izona , lou is iana, Ne w Me xico, Oklahoma, and Te xa s.
In th pusand s of bales .
a In thou sands of bags containing 100 pou nds each .
I n thou sand s of ton s.
In thousands of pounds.
• In thousands of hundredwe ight.
SOURCE : United States Department of Agriculture.
4.
G
I' BUSINE SS RE VI EW
Is
9 :1962
Average
Time and savings deposits increased at the Nation's weekly
(:1; IN ~N
JJ. j reporting member banks during
\f
~>/\t
~./ the 4 weeks ended August 8, but
..,.""...~.." .'.,.........""..
.
loans, investments, and demand
deposits moved to lower levels. The money market displayed a relatively firm tone during the period, as
countrywide reserve availability decreased. The effective rate on Federal funds generally ranged from 2%
percent to 3 percent. The auction rate on 91-day Treasury bills declined from 2.983 percent on July 19 to
2.802 percent on August 9 and stood at 2.83 7 petcent
on August 23 . In the latest bill auction, the Treasury
raised only $100 million in new cash, compared with
$200 million in new funds acquired during each of the
preceding 13 weekly offerings.
/'
"~\/
J{o
~.\
Prices of seasoned corporate and municipal bonds
strengthened in active trading during the 4 weeks, as
new issues were generally well received. A stronger tone
characterized the market for Treasury notes and bonds
throughout the period, possibly reflecting the response
to the Treasury's August 15 refinancing operation, the
dimming of prospects for an immediate tax cut, and the
strengthening of confidence in current yield levels. In
the Treasury's August cash refunding, about $6.9 billion of the 31h-percent certificates due August 15,
1963, was marketed, and nearly $1.8 billion of the 4percent bonds of February IS, 1969, and almost $400
million of the 4% -percent bonds of 1987-92 were sold.
Approximately $1.4 billion in new cash was raised
through the operation. The Treasury also announced
that the partially tax-exempt 2% -percent bonds of
1960-65 will be called for redemption on December
IS, 1962.
At the District's weekly reporting member banks during the 4 weeks ended August IS, deposits expanded
but loans and investments declined. Cash accounts and
total assets advanced moderately.
Gross loans (excluding interbank loans) decreased
$23.2 million during the 4 weeks, mainly because of
reductions of $15 .7 million in "all other loans," $9.1
million in agricultural loans, and $7.7 million in loans
for purchasing or carrying securities. Commercial and
industrial loans showed little change, as significant
advances in loans to firms engaged in construction and
trade counterbalanced a considerable decline in loans to
finns producing durable goods and smaller decreases in
El eve nth Federa l Reserve District
(Averages of daily figures. In thousands of do ll ars)
Item
RESERVE CITY BANKS
Toto l reserves held • ..•.•.... .•
With Federa l Reserve Bank ....
Currency and coin ••.••••••.•
Required reserves •• • ••••••••••
Excess reserves •..•...••••.•.•
Borrowings •. •..•..• .. •••.••••
Free re serves •.•.•.•.....•... .
COUNTRY BANKS
Total reserves he ld ..•....•••..
With Federal Reserve Bank ••••
Currency and coin .••...... . .
ReqUired reserves . ... •• ... . . .•
Excess reserves .•••..••. . ..•••
Borrowings •...•••...•.•..•..•
Free reserves •.....•..••.•. . ..
Al l MEMBER BANKS
Total reserves he ld .•••••....••
With Federal Reserve Bank ....
Currency and coin .•. . • .• •. ..
Required reserves .....••..•...
ixcess .reserves ..•....• •••...•
F~;~o;:~:~~~~: : : .... : .............. : : : :
Eleventh Federa l Reserve District
(In thousands of dollars)
Aug. 15,
1962
Item
ASSETS
Commercial and industrial loan s ••..••••.• " •.
Agricultura l loan s .•....•.•....•..•.•.•....•
loans to brokers and dealers for purchasing
or carrying:
U. S. Government securities •••.••.•.•• • • • ••
Other securities . • ....... .. .•.•... .•• ..••
Oth er loan s for purchasing or carrying:
U. S. Government securities •••.... . ....••.•
Other securities .•........• . .....•.• . .•• .
loans to domestic commercial banks •.•••.•••..
loa ns to foreign banks ••••• .........••••• ••
loons to other financial institutions:
Sales Anance, personal Anance, e tc ..........
Savings banks, mtge. cos., ins. cos., e tc .••.•.•
Real·estate loan s ••.•.•••• .• • ...•... •.•.•.•
All other loans ••••••.•.........•••..•... . .
4 weeks end ed
Aug. I, 1962
.4 weeks cn d e d
Jul y 4, 1962
4 weeks e nd e d
Aug.2,1961
598,199
555,036
43, 163
591,120
7,079
3,250
3,829
602,653
56 1,900
40,753
596,575
6,078
1,461
4,6 17
569,471
529,536
39,935
560,420
9,051
178
8,873
541,549
432,014
109,535
474,9 14
66,635
4,635
62,000
539,612
432,844
106,768
476,2 18
63,394
2,023
61,37 1
517,583
415,272
102,311
447,878
69,705
886
68,8 19
1,139,748
987,050
152,698
1,066,034
73,714
7,885
65,829
1,142,265
994,744
147,521
1,072,793
69,472
3,484
65,988
1,087,054
944,808
142,246
1,008,298
78,756
1,064
77,692
1),751,408
38,188
July 18,
1962
Aug. 16,
1961
1,759,392r
47,258
1,545,313
33,186
274
47,560
274
52,05 1
33,322
55,074
2,479
'177,515
97,170
226
2,485
179,499r
41,501
93
4,672
227,043
61,343
174
'90,752
1)91,607
264,170
'82 1,866
85,854
188,743
263,032
830,600r
81,973
150,007
223,806
770, 165
Gross loans • .•.•..••••••.••••..••••••••
Less reserves and unallocated charge-offs ••
3,483,215
61,917
3,450,782
62,364
3,186,078
55,756
Net loons . . ••••••••••.••••••••• ••.. .•••
3,421,298
3,388,418
3,130,322
Treasury bills .... .••••.• ••••.•..•••.••...•
Treasury certiAcates of indebted ness . •.....•••
Treasury notes and U. S. Government bonds,
including guaranteed obligations, maturing :
127,420
88,189
118,523
61,913
156,028
48,573
Within I year .. . .......................
After 1 but within 5 years •••... .. •..•.• . ••
After 5 years •..•....••••••.•.•.••••••.•
Oth er sec uriti es ••....... ... . .•... . . • ......
260,111
6 11 ,138
470,227
460,578
278,205
652,741
444,771
471,930
212,866
673,094
449,565
422,106
Total investments •• ••••••• • •••••••• •• .•..
2,017,663
2,028,083
1,962,232
Cash items in process of collection •. ..•• ••••••
Balances with banks in th e United States •.•... •
Balances with banks in foreign countries •••.•.•
Currency and coin ....••.••..•••••..... ..••
Reserves with Federal Reserve Bank ••••.••••••
Other assets •• • • . ••• ..••• ••••••••• . ..•..••
624,552
476,987
2,1 58
60,244
579,555
199,356
564,736
475,458
2,322
60,531
583, 136
202,232
525,213
476,212
1,918
55,674
538,8 14
178,875
TOTAL ASSETS •••••••••.•••••••••••.•
7,38 1,8 13
7,304,9~
6,869,260
3,014,498
3,024,079
2,932,400
4,699
163,346
243,974
3,432
133,645
238, 128
5,787
173,352
176,644
1,097,654
15,250
55,907
1,068,164
13,490
5 1,282
1,046,833
13,682
59,568
4,595,328
4,532,220
4,408,266
951,205
696,234
943,755
693,895
779,922
561,657
2,5 11
6,617
260,668
2,511
6,617
252,946
8
7,077
306,994
6,226
2,350
6,421
2,350
5,765
900
LIAB ILITIES AND CAPITAL ACCOUNTS
Dema nd deposits
Individuals, partn erships, and co rporations •• ••
Foreign governments and ofAcial institutions,
central banks, and international institutions ..
United Stat os Government .•••....• •.... ..
States and political sub divi sions •.••..•....•
Banks in the United States, including mutual
saving s banks •.••••..••..•..•••..•...•
Banks in foreign countries •. ... •••••..•.•••
Certlfled and offlcers' checks, etc ... . .. .....
Total d ema nd d eposits •• • •••••....• .•• •
RESERVE POSITIONS OF MEMBER BANKS
---
CONDITION STATISTICS OF WEEKLY REPORTING
MEMBER BANKS IN LEADING CITIES
Tim e and savings deposits
Individuals, partnerships, and corporations
Savings deposits .••••••....•.••••...••
Other time deposits ••. •...••••....•.•••
Foreign governments and offlcial institutions,
centra l banks, and international Institutions ..
U. S. Government, including postal savings .••
States and political subdivisions •.......••• •
Bonks in th e Unit ed States, including mutual
saving s banks •.••••.•..•..••••......••
Banks in foreign countries •••••••••••..... .
Total time and savings deposits ••••.....•
1,925,811
1,908,495
1,662,323
Total deposits ••.•..• .• •• • ••. . ••••••
Bills pa ya ble, rediscounts, e tc . • ••••..••••••••
All other liabilities .•..•.....• .• •••••.......
Capital accounts •••••••..•.••••••.••••..••
6,521, 139
12 1,1 25
102,144
637,405
6,440,715
135,400
95,464
633,337
6,070,589
116,000
85,733
596,938
TOTAL LIABILITIES AND CAPITAL ACCOUNTS.
7,38 1,8 13
7,304,9 16
6,869,260
1 Because of reclassifications, these data are not strict ly comparable with year.earlier
data.
r - Revised.
the remaining business loan categories. During the comparable period in 1961, gross loans climbed $44.4 million, with commercial and industrial loans and loans for
purchasing or carrying securities providing the impetus.
BUSINESS REVIEW
9:1962
I
NEW MEMBER BANKS
The First National Bank of Euless, Euless, Texas, a
newly organized institution located in the territory
served by the Head Office of the Federal Reserve Bank
of Dallas, opened for business July 27, 1962, as a member of the Federal Reserve System. The new member
bank has capital of $200,000, surplus of $200,000,
and undivided profits of $50,000. The officers are : Carl
Dungan, President, and James Munsell, Vice President
and Cashier.
The West Side National Bank of San Angelo, San
Angelo, Texas, a newly organized institution located in
the territory served by the Head Office of the Federal
Reserve Bank of Dallas, opened 'for business July 30,
1962, as a member of t he Federal Reserve System . The
new member bank has capital of $250,000, surplus of
$250,000, and und ivided profits of $100,000 . The
officers are: Michel T. Halbouty, Chairman of the Board
and President; C. S. Conrad, Jr., Executive Vice President and Cashier; and Paul E. Hagen, Assistant Vice
President.
NEW PAR BANKS
The lincoln Bank & Trust Company, Ruston, Louisiana,
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 1, 1962. The officers are: Burton R. Risinger,
President, and O . Eston Payne, Executive Vice President
and Cashier.
The Kent County State Bank, Jayton, 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 4,
1962. The officers are: Hobert Lewis, President; H.
Charles Lewis, Executive Vice President; and Laster
Williams, Cashier.
Total investments at the District weekly reporting
member banks receded $10.4 million during the 4
weeks ended August 15, principally as a result of an
$11.4 million decline in non-Government security
holdings. Holdings of Treasury bills, certificates, and
notes and bonds maturing after 5 years moved upward,
but Government notes and bonds falling due within 5
years declined. In the corresponding period last year,
total investments expanded $77.6 million, and holdings
of both Government and non-Government securities
advanced.
In the 4 weeks ended August 15, the weekly reporting
member banks in the District showed a $63.1 million
rise in total demand deposits; deposits of the United
States Government and of domestic banks each pro-
I
BUSINESS REVIEW
110
9:1962
vided over $29.0 million of the upward movement.
Time and savings deposits climbed $17.3 million, with
deposits of individuals, partnerships, and corporations
and of states and political subdivisions accounting for
the advance. During the comparable period in the preceding year, total demand deposits increased $141.7
million, and time and savings deposits rose $30.6
million.
Refined product markets
strengthened in July but failed to
meet seasonal expectations in
early August. Crude oil markets
in the Nation strengthened somewhat, despite a steady production level throughout the
entire period. On balance, petroleum activity in both
the Eleventh Federal Reserve District and the Nation
exceeded year-earlier levels during July and early August as domestic crude oil production, refinery operations, and refined product demand were more favorable.
The seasonally adjusted index of demand for the
four major refined products rose in July to 108 percent
of the 1957-59 average from 106 percent in June,
principally because of an expansion in gasoline consumption. Seasonally adjusted stocks of these products
declined, as a decrease in light fuel oil inventories offset
an advance in residual fuel oil holdings. Gasoline stocks
in July were little changed. During early August, demand for the refined products declined contraseasonally, but product stocks showed only the usual seasonal
expansion.
Crude oil stocks in the Nation declined 9 million
barrels during July to a level of about 242 million barrels. New supplies were reduced only fractionally;
although crude oil imports decreased, domestic proNATIONAL PETROLEUM ACTIVITY INDICATORS
(S easonall y adiu sted indexes, 1957-59
= 100)
~
July
1962 p
Indicator
CRUDE Oil RUNS TO REFINERY STillS
(dally average) •• _•••• •• ••••••••• '"
DEMAND (dally averag e)
Gasoline . . . o • • • • • • • • • • • • • • • • • • • • • •
July
1961
107
•
Kerosene • ......•...... .. .......•..
Distillate fue l oil ...•. ................
Resi dual fuel oil ... . .. . . . ....... . .. . .
Four reAned products • .. . .... . ..•..
STOCKS (end of month)
Ga soline ..................... . .... .
Kerosene .••• .••..•••..••••.•••..••
Distillate fu el oil .. ......... _....... ..
Residual fuel oil .. ............ .... .. .
Four reAned products .. .. ... .. . .. . .
p -
Jun e
1962p
Pre liminary.
SOURCES , Am eri can Pet rol eum Institute_
United Stotes Bureau of Min es.
Federal Re serve Bank of Dallas.
111
104 .
108
104
154
116
92
106
104
140
111
103
107
106
106
11>1
100
88
102
147
116
93
108
106
112
104
87
103
114
108
83
104
duction was little changed. Crude oil demand, as reflected by runs to refinery stills, declined to an average
of 8.5 million barrels daily in July, following three consecutive monthly advances in refinery activity. In early
August, both domestic crude oil production and processing were little changed; nevertheless, crude oil stocks
rose slightly as a result of moderate import expansion.
In the Eleventh District, the level of crude oil production was virtually steady throughout the period.
Drilling activity failed to vary significantly from monthearlier levels, but refinery operations showed mixed
trends. July daily average crude oil output declined
only fractionally, as slight increases in southeastern
New Mexico and northern Louisiana almost offset a
decline of less than 1 percent in Texas production. In
early August, District output remained at the July average. An increase in Louisiana and New Mexico allowabIes and additional impetus due to the shorter month
indicate a rise in September daily average production,
even though the Texas schedule has been set at 8 producing days for the eighth consecutive month. Crude
oil runs to District refinery stills declined 2 percent during July but rose about 3 percent during early August.
District drilling operations were little changed in
July and early August. District well completions in
the 4 weeks ended August 4 totaled 1,414, which is
about the same as in the prior 4-week period, and total
footage drilled in the area declined slightly. A 3-percent July decrease in active District rotary rigs reflects
a possible near-term reduction in well completions.
The Texas industrial production
index in July, at 111 percent of
the 1957-59 base, was 2 points
below the record June level, as
significant and widespread declines in nondurable goods manufacturing counterbalanced gains in mining and durable goods production. Especially noteworthy decreases were registered
during July for chemicals and allied products and refined petroleum products, while notable output advances occurred in crude petroleum and the primary metal
industries. The index remained moderately above a year
earlier; gains were shown in durable goods manufacturing and mining, while nondurable goods production was
unchanged.
In line with past experience, nonagricultural employment in the District states declined during July to
4,538,000 workers but remained 2 percent above a year
ago. The most significant decrease during the month
INDUSTR IAL PRODUCTION
(Seasonally adjusted indexes)
July
1962p
Area and type of index
1962
May
1962
July
1961
111
120
119
120
101
113
123
118
127
99
112
122
115
127
99
108
116
110
120
98
119
119
115
125
101
141
118
118
114
124
100
141
118
118
114
124r
100
140
112
112
107
119
98
132
June
TEXAS (1 957·59 = 100)
Tota l industrial production . • ••.. . •
Manufacturing •. •• • ••..••••••
Durable .. ..... . .•• ....•. •
.~andurab le •••••••.•. •• •••
Mining .• •••• •..••• • ••••..• •
UNITED STATES (1957 = 100)
Total industrial production . • . ..•••
Manufacturing •. ... . ..•••....
Durable ....... .......... .
Nondurable ... ........... .
Mining .••.••... . ...•...... .
Utilities . . .. ..•............ . .
p r -
Preliminary.
Revisod.
SOURCES , 800rd of Governors of the Federal Reserve System.
Federa l Reserve Bank of Dallas.
was registered in the government sector, largely because
of the release of employees following the first summer
school session and the completion of the usual clean-up
activities after the normal school year. On the other
hand, the most notable advance over June was shown
by construction employment. Unemployment in Texas
declined to 180,000 persons, or 4.9 percent of the civilian labor force - the lowest rate for the month in 3
years. The July unemployment rate compares with 5.1
percent in June and 5.9 percent in July 1961.
.
The value of construction contracts in the five southwestern states increased $40 million during June to total
$425 million. The value of contracts let for public works
and utilities construction rose 86 percent above the
reduced May level, and this gain more than outweighed
a slight decline in nonresidential building and a moderate decrease in residential construction. Contracts
during the first half of 1962 reached an all-time high of
$2,223 million, as all major types of construction exceeded year-earlier levels.
NONAGRICULTURAL EMPLOYMENT
Five Southwestern Stotes '
Percent change
July 1962 from
Number of persons
Type of employment
Tota l nonagricul tural
wage and salary workers .•
Manufacturing . ..........
Nonmanufacturing •.. . ...•
Mining ...............
Construction • ••.. ..••••
Transportation and
public utilities ••..•.••
Trode • •••••••.. .. ••••
finance . .• • ..........•
Service . . .. ... ........
Government . •• ....... .
1
1962
Jul y
1961r
1962
July
1961
4,538,000
793,100
3,744,900
239,400
306,000
4,554,100
794,500
3,759,500
240,800
301,200
4,465, 100
777,900
3,687,200
245,600
302,500
-0.3
-.2
-.4
-.6
1.6
1.6
2.0
1. 6
-2.5
1.2
386,600
1,091,600
230,700
622,700
867,900
386,600
1,094,100
229,800
621,700
885,400
392,900
1,082,700
224,700
604, 100
834,700
.0
-.2
.4
.2
-2.0
-1.6
.8
2.7
3.1
4.0
July
1962p
Jun e
June
Arizona, loui sia na , New Mexico, Oklahoma, and Texas .
Preliminary.
p -
Revised.
SOURCE , State employment agoncles.
r-
BUSINESS REVIEWI
9:1962
11
I
BANK DEBITS, END-Of-MONTH DEPOSITS
AND ANNUAL RATE Of TURNOVER Of DEPOSITS
CONDITION STATISTICS Of ALL MEMBER BANKS
(D ollar amounts in thousands)
(In millions of dollars).
Debits to demand
deposit accounts!
Demand deposits t
1962
July
1961
50
$ 152,550
26.9
30.6
21.5
26
6
53,697
185,721
21.7
~1.8
19.8
21.7
18.1
21 .2
-I
24
37,573
18.0
17.8
3
I
-3
-2
-4
3
-3
3
-3
9
I
-3
2
-5
II
2
2
0
-8
-I
20
-3
21
0
5
7
13
-4
3
8
16
20
18
-2
17
15
22
17
15
2
72,614
11 7,901
166,578
99,337
111,606
19,574
1,316,402
177,507
401,799
62,696
1,394,725
26,307
121,385
44,811
48,043
411,791
17,37 1
62,966
69,025
94,890
18.6
23.9
19.3
20.9
21.2
10.0
29.6
22.2
25.3
19.4
25 .8
14.8
19.6
17.0
15.0
20.8
19.0
18.5
20.8
14.6
18.0
24. 1
21.6
21.2
22.1
9.7
31.0
21.8
26.6
18.1
25.7
15.7
19.1
18.1
13.7
20.9
18.8
18.8
22.3
14.8
16.7
24.0
16.3
21.1
21.1
9.5
28.2
25.1
25.2
18.1
24.0
14.6
18.4
17.2
13.1
18.4
16.0
16.3
18.2
13.7
-I
13
$5,266,869
24.6
25.2
-14
97,942
330,184
12
5
57,048
115,948
235,207
254,661
174,925
195,120
16,224
3,223,274
334,634
834,546
102,712
3,044,751
31,794
198,334
61,801
59,498
698,953
27,386
97,257
118,606
116,636
Corsicana .. ..•.. ...•
Dallas ••• • •• . • ••. •••
EI Paso •• ••.•••.••••
Fort Worth ••• .••••••
Galveston ....•. .. ..
Houston •••• •••• ••• •
Laredo ... ... ..... . .
Lubbock ••••.••••. ••
Port Arthur ... • .....•
San Angelo ••• •• ••••
San Antonio •. . •.•...
Texarkana :! •••••••••
Tyler •••••.• •••• • • ••
Waco ••...........•
Wichita Falls • •.• ••.•
July 26,
1961
Tatal-24 cities •• • ••.•• $ 10,792,952
loan s and discounts ••...................
United Stotes Governmen t obligations ... . ..
Other securities ...... .. ....... ....•.•..
Reserves with Fed eral Reserve Bank ••. ... . .
Cash in va ulte ... •... ...........•.•.. .•
Balances with banks in th e United State~ .. . .
Balances with banks In foreign countriese ....
Cash items in process of collection ... . .....
Other assets e •.•. .. .•......•... ... .... .
5,666
2,795
1,076
941
170
1,094
3
584
303
5,784
2,789
1,048
963
168
1,1 23
3
590
304
5,084
2,884
934
939
158
1,070
3
538
220
12,632
12,772
11,830
Demand deposits of banks ..... .. .....•.•
Other demand deposits . ... ·
... •.• ........
Time deposits •...... .... .... ..... •.••••
1,222
6,792
3,283
1,271
6,892
3,286
1,134
6,777
2,759
Other lIabilities e .•••.••••. •••••••• •. . .•
Total d eposits . .... . .•.. ...•.••.. ....
Borrowings e •... ... ................••••
Total capita l accounts e •. ... ...... . ... . . .
11,297
123
124
1,088
11,449
89
146
1,088
10,670
56
93
1,01 1
TOTAL LIABILITIES AND CAPITAL
ACCOUNTSe .•••••..•• •• . • ••••••••
12,632
12,772
11,830
23.0
365,511
Monroe • . •.. ...... ••
Shreveport ••.•••.•.•
Area
Austin . •..... ..... . .
1962
16.0
1962
ARIZONA
Tucson .. ............ $
LOUiSiANA ••••••• • •.•
Corpus Christi .... ....
June 27,
TOTAL ASSETse •••..••••.•.•••..••••
Jul y
1962
July
1961
Beaumont •. .•••.••••
ASSETS
July 31,
1962'
July
1962
Amarillo •••.•.••••••
July 25,
1962
Item
Annual rate
of turnover
Percent
change from
NEW MEXICO
Roswell ••••••.•••• ••
TEXAS
Abilene • • •••••••••••
Eleventh federal Reserve District
June
June
LIABILITIES AND CAPITAL ACCOUNTS
Deposits of individual s, partnerships, and co rporations and of states and political
subdivisio ns .
1
!:l These flgures include only two banks in Texarkana, Texas. Total de bits for all banks
in Texarkana, Texas-Arkansas, including one bank locat ed in the Eighth Di strict,
amounted to $58, 613,000 for the month of July 1962 .
e-
Estimated.
VALUE Of CONSTRUCTION CONTRACTS
(I~
June
1961
1962p
1961
425
150
130
145
3,900
1,656
1,242
1,002
385
173
134
78
4,009
1,819
1,275
915
410
141
165
104
3,602
1,558
1,221
823
2,223
949
690
583
21,047
9,166
6,647
5,234
2,083
830
686
567
18,220
7,762
5,992
4,465
Januar y-June
FIVE SOUTHWESTERN
STATES' .• ••.•.•••..• • • •
Residential building •.•.•••
Nonresidential building ....
Resi dential building •..... .
Nonresidential building . .••
Public works and utilities ...
(In thousands of dollars)
May
1962
June
1962p
Area and type
Public works and utilities •.•
UNIT ED STATES ••..•••.••••
CONDITION Of THE fEDERAL RESERVE BANK Of DALLAS
mi llions of dollars )
Arizona, loui siana, New Mexico, Oklahoma , and Texas.
p Preliminary.
NOTE. Details may not add to totals because of rounding.
1
Item
Aug . 15,
1962
July 18,
1962
Total gold certificate reserves •... •••••.• .. "
Discounts for member banks •......... •... . .
Other discounts and advances .• •.•• ... . . ...
U. S. Government securiti es •• •... •...•......
Total earning a sse ts..•... • . •... .. . , ..... . .
Member bank reserve deposits .•.... .... . ...
Federal Reserve notes in actual circulation ...••
598,311
7,560
840
1,219,135
1,2 27,535
964,287
875,727
596,999
55,850
840
1,172,721
1,229,4 11
958,115
866,628
Aug. 16,
1961
SOURCE, F. W. Dodge Corporation.
667,148
4,245
BUILDING PERMITS
o
1,107,996
1,11 2,241
906,346
847,353
VALUATION (Dollar amounts in thousands)
Percent change
NUMBER
July 1962 from
7 months,
July
1962
Area
DAILY AVERAGE PRODUCTION Of CRUDE OIL
Jul y
1962
7 mos.
1962
7 mos.
June
1962
1962
Jul y
196 1
1962 from
1961
ARIZONA
(In thousands of barre ls)
9,697
$ 27,881
238
59
-9
2, 110
1,21 1
11,439
18
-44
-51
Wichita Falls ••
112
212
369
331
348
2,635
46 1
762
197
1,755
211
105
80
128
1,530
210
96
960
2,004
2,473
2,166
2,198
17,768
3,528
4,743
1,576
18,582
1,765
832
618
1,054
9,397
1,597
949
1,352
1,954
3,973
898
1,697
33,084
2,828
3,585
3,875
24,532
3,138
512
1,219
414
8,6 12
639
575
13,405
22,761
38,549
10,273
12,223
161,702
28,346
29,358
15,840
209,747
23,537
10,853
6,273
2,961
39,322
9,546
7,791
- 14
-57
12
-33
-31
-26
-41
22
318
-29
38
-83
2
13
116
-34
-46
41
-36
-12
-6
-7
76
-47
-'5
344
-4
20
-42
91
-50
216
12
-77
43
-2
14
17
4
30
-32
- 17
308
34
-9
29
-22
-40
32
-8
-45
Total-19 cities .•
10,666
79,992
$ 103,795
$68 1,807
-12
22
13
••• ••
848
5,672
Shreveport •...
276
Tucson . . o
$
LO UISIANA
Percent change from
Area
ELEVENTH DISTRICT. •••••. •
Texas ..•.••.••• ••..••.•
Gulf Coast •••••••..•••
West Texas .....•.....
East Texas (proper) •••••
Panhandle ••••••••••••
Rest of State ••• • •• ..••
Southeastern New Mexico •.
Northern Louisiana ...•.. ..
OUTSIDE ELEVENTH DISTRICT.
UNITED STATES ••..........
p -
July
1962p
2,925.1
2,529.3
470.9
1,1 37.3
124.7
102.6
693.8
265.9
129.9
4,322.6
7,247.7
June
1962p
2,943.8
2,546.9
473.4
1,148.0
125.9
104.0
695.6
269.9
127.0
4,306.9
7,250.7
Preliminary.
SOURCES, American Petroleum Institute.
United States Bureau of Mines.
Federal Reserve Bank of Dallas.
BUSINESS REVIEW
12
9:1962
July
1961
2,850.2
2,467.8
441.2
1,137.1
124.3
108.3
656.9
257.3
125.1
4,107.8
6,958.0
June
1962
-0.6
-.7
-.5
-.9
-1.0
-1.3
-.3
1.5
2.3
.4
.0
July
1961
2.6
2.5
6.7
.0
.3
-5.3
5.6
3.3
3.8
5.2
4.2
TEXAS
Abilene • ••• •••
Amarillo •. . •••
Austin ........
Beaumont ... . .
Corpus Christi..
Dallas •••.••••
EI Paso • • •.•• •
Fort Worth ••••
Galveston • . oo •
Houston . . •.. .
Lubbock .••.• •
Midland ..••..
Odessa •. . •...
Port Arthur • •.•
San Antonio ...
Waco ••...•.•
@FedFRASER