TEXAS BUSINESS REVIEW A MONTHLY SUMMARY OF BUSINESS AND ECONOMIC CONDITIONS IN TEXAS BUREAU OF BUSINESS RESEARCH COLLEGE OF BUSINESS ADMINISTRATION THE UNIVERSITY OF TEXAS YOL. XII NO. 5 JUNE 1948 HIGHLIGHTS OF TEXAS BUSINESS MAY 1948 COMPARED WITH MAY 1947 Construction contracts______ _______________ _ Electric power consumption______________ _ Bank debits_______________ __ _ ___________ _ _____ __ _ Reta ii sales__________________ ________ _________ ______ _ Postal receipts ____ ___________________ ______ _ _ --· Farm cash income ______________ _______________ . Crude petroleum production. _ _____ __ Pay rolls_____________ -----------------____ ___________ _ Revenue freight loaded _______ _____________ _ Employment -·-·----------------------------------­Cotton consumption ____________ ______ _______ _ MAY 1948 COMPARED WITH APRIL 1948 Electric power consumption______________ _ Farm cash income_______ ______ _ ,_____ _ ______ _ Revenue freight loaded ____ ____ ____________ _ Crude petroleum production __________ _ Reta ii sales_____________ ______ -------------·------·-­ Employment ----------·---------------------------­Construction contracts·-------·-----------·­Bank debits·--------------------------------·------­Postal receipts·-·------------·-·-----------------­Pay rolls_____________________________________________ _ Cotton consumption__ _________ _____ _________ _ PERCENT DECREASE 10 5 PERCENT DECREASE PERCENT INCREASE 10 5 0 15 20 . 25 5 10 30 35 40 TWENTY CENTS PER COPY TWO DOLLARS PER YEAR FIGURES FOR THE MONTH INDEX OF TEXAS BUSINESS ACTIVITY (1935-39=100) • ........ Index of department and apparel store sales (10) ·------------------­Index of miscellaneous freight carloadings in Southwestern District (20) _ _______ Index of crude oil runs to stills (5) _ ___ ____________________ Index of electric power consumption (15) _ ____________ __ _ _ _____ ____ Index of employment (25) ------------­ Index of pay rolls (25) ________________ _____ __ _ _____________________ _ _ TRADE Retail sales, total ----------­ __ _ ____ Durable goods stores------------------------······-···----··-· Nondurable goods stores.-----·-····-··-·-·-··-··-····------------------------­Ratio of credit sales to net sales in department and apparel stores..·------------­Ratio of collections to outstandings in department and apparel stores______ _____ ___ Advertising linage in 32 new5papers.......----···-·-·····-----------··-·----------·-··········-··-·-··-·-····----------­Postal receipts in 59 cities------------------------------········-··-·-··-·······------······-·-----··-··-······--·------------­PRODUCTION Industrial electric power consumption for 10 companies (thousands of kilowatt hours) _ Man-hours w<>rked in ~48 manufacturing establishments_____________________________________________________ Crude oil runs to stills (42-gallon barrels) _ ________________ Gasoline stocks at refineries (thousands of barrels) Fuel oil stocks at refineries (thousands of barrels) Cotton consumption (running bales> ---------·----­Cotton !inters consumed (running bales) ------------­Cottonseed crushed (tons) --------------­ Manufacture of dairy products (l,000 lbs. milk equivalent) ______ _____________ Lumber production in southern pine mills (weekly per unit average in board feet) ___ Construction contracts awarded.....------·-------------------· __ Co~st_ruction c?nt~acts a~arded ~o~ residential building..____________ _____ _ Bmldmg penmts issued m 53 c1ties....--····-··-·-·······---·-····-------····--·---------···········--------------------­ Number of loans made by savings and loan associations ----· Amount of loans made by savings and loan associations____________________ Crude petroleum production (daily average in barrels) _ _________________ AGRICULTURE Farm cash income .. ---------­Shipments of livestock (carloads) _ _ -------------­Rail shipments of fruits and vegetables (carloads) ·-----------------------­ Rail shipments of poultry (carloads) _ ___________________ Rail shipments of eggs (shell equivalent in carloads) . ------­Interstate receipts of eggs at Texas stations (shell equivalent in carloads) ··-------------­FINANCE Loans, reporting member banks in Dallas District (thousands) ----------------·-------­Loans and investments, reporting member banks in Dallas District (thousands) -------­Demand deposits adjusted, reporting member banks in Dallas District (thousands) _ ___ _ Bank debits in 20 cities (thousands) _______ ·---------­Corporation charters issued (number)--------------------------------­Ordinary life insurance sales (thousands).. ----------------------­Business failures ------------········----·········--···-----······----··-··-······--·----·-·---------------------·-····-···-·····--·--·­TRANSPORTATION Revenue freight loaded in Southwestern District (carloads) ··------------------------­ Export and coastal cars unloaded at Texas ports (carloads) _ _________________ Miscellaneous freight carloadings in Southwestern District (carloads) __ ___________ Air express shipments (number) ____ LABOR Total nonagricultural employment________ Manufacturing employmenL__________ Nonmnnufacturing employment_____ _ . Nonagricultural civilian labor force in 15 labor market areas_ ____________ Unemployment in 15 labor market areas_______________________ Placements in employment in 15 labor market areas__________________ GOVERNMENT Revenue receipts of State Comptroller____________________ _ Federal internal revenue collections_ PRICES Index of consumers' prices in Houston (1935-39 = l()())________________ __________________ Index of food prices in Houston (1935-39 = 100).._________________________ _ May 1948 208.5 328.6 149.1 184.2 326.0 121.8 228.8 $447,701,000 $161,508,000 $286,193,000 60.8 53.7 30,288,445 $ 3,017,944 279,966 3,438,779 52,903,516 21,020 13,942 12,435 1,321 52,484 64,242 211,602 $ 73,794,894 s 22,833,416 $ 36,157,475 1,937 $ 7,678,761 2,419,350 $106,629,000 11,013 9,979 6 246 43 s 1,002,000 $ 2,169,000 s 1,865,000 s 3,391,497 378 $ 62,370 4 291,254 15,981 180,859 29,149 1,692,700 341,700 1,351,000 1,244,973 44,620 27,409 $ 47,909,041 $ 85,620,037 171.5 218.l April 1948 215.8 354.9 161.5 181.3 312.3 123.5 244.6 $448,286,000 $164,782,000 $283,504,000 63.1 52.4 30,340,121 $ 3,151,311 263.,506 3,281,628 50,113,074 21,940 13,822. 13,338 1,784 70,47:> 58,399 226,180 $ 75,347,446 $ 26,038,350 $ 43,639,529 1,952 $ 7,927,315 2,419,000 $103,492,000 12,390 11,658 0 32Z 44 s s s 1,018,000 2,188,000 1,867,000 $ 3,496,691 387 s 64 ,804· 5 285,269 15,632 183,784 26,273 1,685,000 338,700 1,346,300 1,239,442 49,145 24.,220 $ 52,968,486 $ 91,290,705 171.4 2.19.3 May 1947 187.3 284.1 143.0 145.3 256.0 119.3 219.2 $397,625,000 $137,209,000 $260,416,000 56.5 57.6 26,749,530 $ 2,727,484 227,325 3,248,431 41,746,563 17,809 14,206 12,437 1,034 6,602 102,527 226,206 $ 52,898,189 23,526,200 s 23,236,216 1,984 $ 7,405,365 2,226,850 97,915,000 12,935 13,311 28 4.70 11 s 736,000 s 1,849,000 1,530,000 $ 2,872,317 230 $ 62,009 2 282,877 17,249 173,501 25,898 1,613,500 324,800 1,288,700 1,212,663 66,656 21,488 s 41,440,730 $ 62,651,198 157.6 197.l •The composite index ls made up ot the lndexee Hated. All component Index• except employment and P•J' rolle an adJuted for HUOaal variation, and nil indexes are baaed on the a'rera&e month of the yean 1986-llQ. Numben in parentheo• followlnc the component lnde:<• Indicate the wehrht of each Index In the eomp..tte. • The Business Situation Ill Texas For the second consecutive month Texas business activity established a new high for the postwar period, as measured by the composite index of business activity compiled by the Bureau of Business Research. The May level of the index was 217.2, which was a rise of 0.6% from April. The April index of 215.8 had been the highest point reached since May 1945. Although the rise was not reflected in all the compo· nents of the index, four increased while only two decreased. Miscellaneous freight carloadings dropped 7.7% from April, bringing the index to 14.9.1, while department and apparel store sales dropped 7.4% to 328.6. Since miscellaneous freight carloadings are con­sidered a measure of the changes in distribution of goods, it appears that the only decline in the business situation occurred in trade. May was the lowest point reached in each series so far this year; both of the indexes have had the effect of seasonal variation removed. On the other hand, pay rolls rose 6.9% to carry the index up to 261.5, another new high since the end of the war. Employment eased upward 0.5% to a new high for 1948, but at 124.l the index was below the December high of 125. Electric power consumption rose 4.4% to an index of 326.0, only a fraction of a point below the 1948 high registered in February. Crude rum to stills rose 1.6% to establish a new record for the index, but, in the face of the great demand for gasoline, this rise probably reflects the specific demand and supply factors in refinery operations more than it does the general business situation. The trend in Texas business agrees in general with the trend in the rest of the country. For the country as a whole, the Office of Business Economics of the Depart­ment of Commerce reported that developments in May and early June reestablished for the time being, at least, the greater strength of demand factors relative to those governing supply. As a result of these developments consumer purchasing and construction increased, and commodity markets registered further general advances in prices. The National City Bank of New York made the following statement in its Monthly Letter: "The business news during May has strengthened expectations that activity in most lines will continue high in the months ahead, and that the industries as a whole will continue under pressure to meet the demands that are on hand or in sight." With demand for goods supported by the European Recovery Program, the increase in expenditures for munitions, and the continued high level of corporate expenditures for plant and equipment, it appears that the immediate prospect for business is good. However, these factors cannot be depended upon to support the situation indefinitely. Industry and agriculture in Europe are beginning to show signs of substantial recovery. Even more important than the foreign demand for American goods have been the expenditures of business for new capital goods. When present needs for new capital have been met, a drop in capital forma­tion can he expected, and if a decline in the demand for consumer goods occurs simultaneously, this drop in the demand for capital goods could be greatly accelerated. The level of the composite index of Texas business in May was 16.0% above May of last year. Three series increased more than the average for the composite: electric power consumption was 27.3% above May 1947, crude runs to stills 26.8%, and pay rolls 19.3%. The other series increased less than the composite in compar­ison with a year ago: department and apparel store sales 15.7%, miscellaneous freight carloadings 4.3%, and employment 4.0%. The index of bank debits did not confirm the rise in the composite index, but dropped 2.8% from April. This index is compiled by the Bureau of Business Research from original data collected by the Federal Reserve System, and measures total dollar-volume busi­ness transactions. A decline in bank debits, after adjust­ment for seasonal variation, means that less money was spent in Texas during May than in April. This measure is in effect a w~ighted composite measure of business transactions, since all kinds of expenditures are repre­sented in hank debits. In comparison with May 1947, bank debits were up 18.l%, while the composite index of business activity increased 16.0% over the same period. The index of postal receipts in Texas cities also declined between April and May. The Bureau's index, INDEX OF TEXAS BUSINESS ACTIVITY ADJUSTED FOR SEASONAL VARIATION PERCE~T PERCENT 260 260 240240 220 220 ; 200 200 180 180 160 160 140 140 120 120 100 100 80 80 1940 1941 1942 1943 1944 1945 1946 1947 1948 adjusted for seasonal variation, dropped 2.0%, but was still 11.2% above the level of May 1947. Since all kinds of business make use of the mails, this series is also a natural composite index of general business activity, and serves to support the story told by the index of bank debits. The individual phases of the business situation show some variation from the composite, just as the compo· nents of the composite index show variations. Sales of Texas retail stores decreased 4.5% in May after adjust­ment for seasonal variation, with a larger decrease in durable goods store sales than in nondurable goods stores. Industrial production in Texas made a better showing than retail trade. The Bureau's index of industrial power consumption was up 2.0% from April, and since the use of electric power is widely distributed throughout the industry of the State, it is a good mea!Oure of the rate of activity in this kind of business. In comparison with a year ago, industrial power consumption was up 23.2%. Man-hours worked in 448 manufacturing establishments increased 4.8% in May over April, and were 5.9% ahead of May 1947. The total manufacturing employment in Texas increased 0.9% in May over April, according to the reports received by the Bureau of Business Research cooperating with the United States Bureau of Labor Statistics. In comparison with a year ago, employment in manufacturing concerns was up 5.2%. Crude runs to stills, after adjustment for seasonal variation, increased 1.6%; but crude petroleum production, seasonally­adjusted, decreased 1.8%. The actual volume of crude petroleum production was practically unchanged for May in comparison wit}i April, but since there is nor­mally a seasonal increase between April and May which did not take place this year, the adjusted data declined. Manufacture of dairy products declined 7.6% and production of southern pine dropped 6.13. Farm cash income increased 4.8% to establish a new 1948 high for the Bureau's index, at 346.9% of the 1935-39 base period. In May, however, the index was only 7.6% above the year-ago level, when the index reached an extremely high level. Prices continued to rise during May, and marketings of farm products went on at a high rate. Building permits failed to hold the high levels of April, and the Bureau's index declined 30.4% after adjustment for seasonal variation. This decline brought the index to 469.0% of the 1935-39 base, a point 62.2% above the level of May 1947. Commodity prices have continued to rise, and the index of common stock prices has reached a new high level for the past two years. This month the Bureau takes pleasure in an­nouncing the publication of "A Selected and An­notated Bibliography of Literature on Public Re­lations," by Dr. William A. Nielander, Professor of Marketing and Public Relations in the College of Business Administration. Copies of the bibliog­raphy may be obtained free of charge upon re­quest to the Bureau of Business Research. TRADE Retail Trade (The movement of coocb Into the Mud• of conaumera la •• of the fundamental serlea of atatlatlcal data on bualneH activity, •lace for business to be aound the volume of retail trade muat be cood. Durlnr a period of lnftatlon an lncreaae In aalea reaulta from a rile in prices ai well aa from an Increase m the amount of bualneaa. A mere detailed analyaia of retail aalea trenda la made In a Suppla­ment to the Review on Texaa Retail Trade. The fluctuatlona bi retail credit ratios are Important condltlonl,,. factors of the volume of trade. Newspaper advertlalnr llnqe and postal receipts are secondary trade Indicators.) Estimated retail sales in Texas totaled $44 7,701,000 for May, or 0.1 % less than in April but 12.6% l~rger than in May 1947. Year-to-date sales were 15.7% higher in 1948. Durable goods lines continued to contribute the greater sales gains, 17.7% over May 1947 and 23.9% more for the five months, January-May. Nondurable goods sales increased 9.9% over last May, and 11.5% for five months of this year over last. The inrlex of total retail sales (adjusted for seasonal \ ariation and based on the prewar years 1935-39) declined abruptly to 324.9 from its high point of 340.1 in April. Adjusted to remove the influence of price increases. the index of total retail sales also slipped down Lo 172.3 from April's 180.3, showing a tendency for unit sales as well as dollar sales to decrease, probably temporarily. The durable goods index also receded from 395.4 to 362.9. and the nondurable goods index from 311.0 to 303.9., The index for eating and drinking places reached a new high in May; but most of the retail indexes fell substantially, the more noticeable being for dealers in automotive goods, building materials, jewelers, 1rnd department stores. ESTIMATES OF TOTAL RETAIL SALES (in thousands of dolla.rs) Percent cbanire Type of store May 1948 May 1948 Jan.-May from 1948 May 1947 May 1948 Jan.-May 1948 from from Apr. 1948 Jan.-May 1947 TOTAL ------·­·--­447,701 .2,094,851 + 12.6 - cu +u.7 Durable goods stores ---------­--161,508 755,497 + 17.7 - 2.0 + 28.9 Nondurable goods stores -·-·-----··­286,193 1,389,364 + 9.9 + 0.9 + u.5 By kinds of business, largest sales gains over May 1947 averaged 17.4% for lumber, building material, and hardware dealers and 16.7% for filling stations. Most ~ther types of retailers had smaller gains, hut apparel stores averaged a 1.5% decrease. For the five months, January-May, greatest sales increases were .reported_ for building material dealers (18.0%), fillmg. stations (]3.2%), automotive dealers (12.3%), furniture and household goods stores (10.4%), and department stores 19.8%). Sales increases over May 1948 were reported as larg· est (6.2 % ) for cities of 2,500 to 50,000 population and smallest (2.1 % ) for towns under 2,500. For the five RETAIL SALES OF INDEPENDENT STORES BY KINDS OF BUSINESS Source: Bureau of Business Rese&rch in cooperation with the Bureau of the Cenaus, U. S. Department of Commerce Percent change N umber of i-eporting May 1948 May 1948 Jan.-May 1948 establish-from from from Business ments May 1947 Aprll 1948'Jan.-May 1947 Apparel stores ----­ 28fr - 1.5 - 1.2 + 2.6 Automotive --·--··--·-· 205 + 5.3 - 4.8 + 12.3 Building material, lumber and hardware ··--··---­244 +17.4 - 2.1 +18.o Country general --­-------­ 62 + 0.6 + 4.0 + 3.6 Department stores -------­ 52 + 0.9 - 2.2 + 9.8 Drug stores ---·····--137 + 1.7 + 6.8 + 1.5 Eating and drinking places 102 + 1.2 + 8.3 + 1.4 Filling stations ---­--···--···-· 62 + 16.7 - 2.5 + 13.2 Florists --------------------­ 50 + 3.9 + 27.3 -2.0 Food -----··-··---··-··-· 206 + u + 2.0 + 7.3 Furniture and household. __ 154 + 6.7 + 6.3 + l o.4 General merchandise -----­ 54 + 2.4 + 1.4 + 5.3 Jewelry stores --------­ 41 + 0.3 +24.4 -0.6 All other stores -·-·-·-·-··· 111 + 3.3 - 1.1 + 9.5 months, January-May, the largest increases (10.9%) were found in the cities of from 2,500 to 50,000 and the llD&llest (7.8%) in cities of over 100,000. Among individual cities, largest percentage sales gains were reported for Plainview ( 40.6%), Austin (15.1 % ) , Lubbock (14.5%), and Temple (13.4%). Five cities had sales increases of 6 to 12%, 8 increased by 1 to 5%, and 6 had decreases in sales. RETAIL SALES OF INDEPENDENT STORES BY CITY -SIZE GROUPS Source: Bureau of Buainess Research in cooperation with the Bu·r;;;:u of the Cenoua, U. S. Dep&rtment of Commerce Percent change Number of reporting May 1948 May 1948 Jnn.-May 1948 establish-from from from Populp.tion ments May 1947 April 1948 Jan.-May 1947 Over 100,000 ·-·--··-·---625 + 3.3 -2.0 +7.8 50,000-100,000 ----····--207 + 3.9 + 1.5 + 10.7 2,500-60,000 -----······-····--705 + 6.2 -0.1 + 10.9 Under 2,500 -·············--·--173 + 2.1 + 1.9 + 9.3 The ratio of credit sales to total net sales in 68 depart· ment and apparel stores stood in May at 60.8%, as compared with 56.5% a year earlier and 63.1 % in April 1948. The average collection ratio declined from 57.6% in May 1947 to 53.7% in 1948. Merchants continue to be apprehensive concerning customers' increasing demands for both open book and instalment credit, accompanied by slower payments and a rising percent­age Qf uncollectible accounts. As in earlier months, Dallas (68.4%), among cities, and women's specialty aliops (M.4%), among types of retail stores, continued to handle the highest percentage of credit business. Austin (50.2%) and various smaller communities not separately identified in th~ reports had the lowest percentages. 'J'he best ratios Qf collections were made in Austin (64.2%) and in Corpus Christi (59.5%) and by the dry goods apparel stores (58.7%) and men's clothing stores (58.6%). By volume, stores selling over 12,500,000 yearly carried on the most credit business (6.3.6%), but stores with sales of $500,000 to Sl,000,000 averaged the best credit ratios ( 6.5 % ) . CREDIT RATIOS IN DEPARTMENT AND APPAREL STORES (in percent) Ratio of Ratio of credit aales collectione to Number of to net salee• out.standlngst Classification reporting May stores 1948 May 1947 May 1948 May 1947 ALL STORES ··--·--·····-·····--··--68 60.8 56.5 5S.7 57.6 BY CITIES: Austin --·--·----·-··--·---·-·-·-···­ 7 50.2. 46.2 64.2 68.9 Beaumont ····-··----·----·---···· 3 63.2 59.1 58.1 60.8 Corpus Christi ··--····--------··· 4 56.3 49.7 59.5 68.6 Dallas ---·--··-····--···--·-·-···· 13 68.4 63.9 53.6 56.1 El Paso ··-···-··-·-·-··--·----·····-­ 3 53.1 49.5 46.8 48.9 Fort Worth --··-··-·-·..-----·--­ 50.6 56.6 56.5 68.8 Houston ·············-··-·-···----·­ 59.0 55.4 49.9 56.7 San Antonio ···-··--····-·--·--···---­ 56.1 49.6 51.9 59.9 Waco ···-····-·--········-····-----····---··· 55.4 54.l 58.7 68.9 All others --···--···---··---··-·--·---··· 19 50.3 45.8 56.2 65.1 BY TYPE OF STORE: Department stores (annual sales over $500,000 ) --·· .. 19 61.3 56.7 53.1 57 .5 Depru-tment stores (annual sales under $500,000) ...... ­ 9 45,9 42.4 56.7 57.7 Dry goods-apparel stores -··· 5 48.8 43.6 58.7 66..1 Women's specialty shops ···­ 21 64.4 57.3 54.0 55.8 Men's clothing stores ----·-· 14 55.5 49.9 58.6 66.8 llY VOLUME OF NET SALES: (1947) Over $2,600,000 ..................... .. 22 68.6 59.3 53.4 56.9 Sl,000,000-$2,500,000 14 49.6 46.0 55.2 63.0 $500,000-$1,000,000 --·-----·---·-·­ 15 45.8 41.6 60.5 62.7 Less than $500,000 ......... _____ 17 46.9 41.2 62.4 60.6 •Credit sales divided by net sales. t Collections during the month divided by the total accounts unpaid on the first of t he rnoa ! :] . Markdowns and operating expenses show rising ten· dencies, and merchandise turnover is slowing. Many retailers face the necessity for absorbing higher costs of merchandise, narrowing their possible margin. In­vestments need to be controlled, whether in new build­ings and equipment, stocks of merchandise, or customers' accounts. The days of planned and controlled mer­chandising are rapidly returning. Sales of gasoline subject to tax totaled 191,453,235 gallons in April, an increase of 3.8% over March and of 13.9% over a year ago. Sales to the federal govern­ment fell 25.8% behind March, but were 207% over sales of April 1947. The index of gasoline sales advanced in April to a high point of 203.7. Attendance records at State par/cs registered sharp seasonal advances from April to May, both in terms of number of cars (+34.2%) and number of persons (+40.0%). Notable exception to the over-all hike was the 11.6% reduction in the number of out-of -State cars counted. Altogether, 100,244 cars and 362,987 persons visited State parks in May 1948. Compared to May 1947, 10.9% more cars were registered and 13.4% more persons. Advertising linage in 32 newspapers of leading Texas cities was 13.2% larger than in May 1947 but slipped below April by 0.2%. In 1947, linage had increased by 3.7% from April to May. Postal receipts in 60 Texas cities turned downward 4.2%, reflecting a greater·than·seasonal decline from TEXAS BUSINESS REVIEW April to May. After removal of the regular seasonal factors the indexes dipped 2.0% to 234..4% of the 1935-39 base period. With only 9 exceptions all of the 60 cities contributed to the April-to-May decrease. Postal receipts for May 1948 were still 10.6% above their year­earlier level, however. POSTAL RECEIPTS P ercen t cha ns;re City May 1948 Apr. 1948 May 1947 May 1948 May 1948 from from May 1947 Apr. 1948 TOTAL ----..........$3,017,944 $3,151,311 $2,727,484 + l o.6 -4.2 Abilene 32,579 34,561 30,359 + 7.3 -5.7 Amarillo --------­ 69,570 64,458 56,853 + 22.4 + 7.9 Austin ····----­--­­ 119,411 149,687 123,996 -3.7 -20.2 Beaumont ----­------ 50,465 52,468 45,632 + l o.6 -3.8 Big Spring ...... .. 8,341 10,431 10,607 -21.4 -20.0 Borger --------­Brownsville -----­ 7,591 12,412 8,072 13,574 7,022 11,313 + 8.1 + 9.7 -6.0 -8.6 Brownwood ----­­ 11,686 11,586 10,577 +10.5 + 0.9 Childress 3,041 4,118 3,271 -7.0 -26.2 Cleburne ............. . 5,531 6,071 4,815 + 14.9 -8.9 Coleman ............. . 3,830 4,410 3,910 -2.0 -13.2 Corpus Christi .. 63,727 68,487 64,295 -0.9 -7.0 Corsicana ---·-­-- 8,158 9,400 8,652 -5.7 -13 .2 Dallas -­···-········· 819,277 833,853 677,612 +2o.9 -1.7 Del Rio 5,039 6,453 5,684 -11.3 -21.9 Denison --­-----­--­ 9,578 10,173 9,433 + 1.5 -5.8 Denton --······-···­ 13,022 15,137 12,036 + 8.2 -14.0 E dinburg ........... . 5,351 5,826 5,485 -2.4 -8.2 E l Paso -·····­······ 94,336 103,906 79,979 + 18.o -9.2 F or t Worth ---­­ 313,382 308,837 296,766 + 5.6 + 1.5 Gainesville -----­­ 5,190 6,537 5,475 -5.2 -20.6 Galveston -----­ 50,057 51,177 48,109 + 4.0 -2.2 Gladewater ------­-­ 3,632 4,299 3,522 + 3.1 -15.5 Green ville --·····-· 11,733 12,914 9,194 +27.6 -9.1 H arlingen 13,091 15,697 11,636 +12.5 -16.6 Houston ··­·······­ 516,808 532,176 468,688 +lo.3 -2.9 J acksonville ____ 6,123 6,234 6,068 + 0.9 -1.8 Kenedy ............... . 2,502 2,081 2,081 + 20.2 + 20.2 Kerrville ----······ 5,321 5,213 4,562 + 16.6 + 2.1 Lamesa ·----------­ 4,966 4,626 5,065 -2.0 + 7.3 Laredo -------­ 16,529 16,948 15,137 + 9.2 -2.5 Lockhart --······ 2,182 2,362 2,190 -0.4. -7.6 L ongview ------­­ 14,780 19,197 15,428 -4.2 -23.0 Lubbock -----­ 43,998 47,049 44 ,058 -0.1 -6.5 Lufkin ---····-······­ 8,343 8,921 7,754 + 7.6 -6.5 McAllen ............. . 10.122 11,222 9,626 + 8.3 -7.1 Marshall --···-···· 12,150 11,902 10,297 + 18.0 + 2.1 Midland -----­ 14,874 17,135 13,977 + 6.4 -13.2 Nacogdoches ..... . 5,969 6,244 5,737 + 4.0 -4.4 New Braunfels .. 5,587 5,807 4,540 + 23.1 -3.8 Orange ............... . 9,562 10,623 10,542 -9.3 -10.0 Palestine -------­ 7,806 8,536 7,625 + 2.4 -8.5 Pampa ------------­ 10,218 10,665 10,511 -2.8 -4.2 Paris ----­---·­ 9,788 10,453 11,481 -14.7 -6.4 P la inview ----­---­ 7,934 8,193 7,164 + 10.7 -3.2 Port Arthur _ _ _ 23,927 25,594 23,931 -0.01 -6.5 San A ngelo ....... . 28,952 28,263 23,007 +25.8 + 2.4 San Antonio ...... 280,323 293,426 257,530 + 8.9 -4.5 Sherman --·-··--·· 13,789 15,121 12,786 + 7.8 -8.8 Snyder 1,965 2,500 2,187 -10.2 -21.4 Sweetwater ....... . 8,926 9,891 9,229 -3.3 -9.8 Temple -----­'l.'exarkana ___ 13,345 26,528 13,483 27,384 11,735 25,550 + 13.7 + 3.8 -1.0 -3.1 Texas City ......... . 9,068 9,579 7,633 +18.8 -5.3 Tyler ····-··--······· Vernon -----­·--­ 30,455 6,099 34,623 7,546 26,519 5,574 + 14 .8 + 9.4 -12.0 -19.2 Victoria ---------­ 10,287 9,962 8,776 + 17.2. + 3.3 Waco ---­------­ 66,586 73,954 64,729 + 2.9 -10.0 Wichita Falls .... 41,802 42,267 39,534 + 5.7 -1.1 Wholesale Trade (Wholesale aalea and inventories represent the movement of roocl1 to retailers, and when compared with the chanres In retail aal11 indicate whether stocks in the hands of retailera are belnr main· tained at a constant level or are being allowed to increaae or decrease.) The dollar sales of Texas wholesalers reporting to the Bureau of the Census for the month of April 1948 showed a modest increase of 4% over March 1948. The largest increase in sales was reported by the automotive supplies group, registering an increase of 28%, with the electrical group 13%, and groceries 5%. Declines were indicated for all other groups. The declines were modest, 8% for tobacco products, and 3% for machinery, equip· ment, and supplies except electrical. The other reporting groups had sales declines of only 1 %. A comparison with sales of April 1948 with the same month for 1947 shows an increase of 16% for all groups with machinery, equipment, and supplies except elec· trical leading with an increase of 39%, followed by the electrical groups 28%, groceries 19%, all other group 7%, and drugs and sundries 4%. Automotive supplies and tobacco sales for April 1948 were lower than sales in April 1947 by 17% and 8%, respectively. /nvrntories for all reporting groups were up 1 %for April 1948 compared to Marcl). 1948. The inventory values for automotive supplies were down 3%, as were stocks for the "all other" group, and drugs and sundries inventories were off 2%. Inventories for April 1948 were up 14% over April 1947. Only the drugs and sundries group and the all other group showed inventories lower m April 1948 than in April 1947. Department of Commerce figures for the nation reveal an increase of 10% m sales for April 1948 over the same month in 1947. The sales gain for wholesalers in Texas was much greater (16%), as indicated above. Of special interest to wholesalers is the rise in accounts receivable over the nation. April accounts receivable were up 6% from March and 15% above the same period a year ago. This is not serious since the collection index dropped from 106 in April 1947 to 102 this April. PERCENTAGE CHANGES IN WHOLESALERS' SALES AND INVENTORIES Sourse : Bureau of the Census, U.S. Department of Commerce Sales Inventories Business Apr. 1948 from Ap r. 1947 A pr. 1948 from Mar. 1948 A pr . 1948 from Apr. 1947 Apr. 1948 from Mar. 1948 TOTAL ..... ····--·--............ + 16 + 4 + 14 + 1 =================== Automotive supplies .. _ .. -17 + 28 -s Electrical equipment ___ ......... +28 + 13 + 40 + 5 H ardware . -·-···--·-·-·-·--· ___ ...... + 13 -1 +20 + 3 Machinery, equipment and sup­ plies (except electrical) ...... + 39 -3 + 23 + 2 Drugs an•! sundries• ................ + 4 -1 -8 -2 Groceries . ······--······ ----···· ....... +rn +5 + 8 -3 Tobacco products .......... ···-... -8 -8 + 17 + s All other ... ...... ··---------·--·· + 7 -1 -1 -3 *Excludes liquor departments. TEXAS BUSINESS REVIEW Foreign Trade (Tonnaire fiirures for export shipments from the principal ports of the State provide an accurate physical measure of the current volume of foreiirn export trade. Value fiirures for exports and l.m­ ports, however, represent a more common measurement of foreign trade transactions, but they are subject to adjustment for price chanl'e&.) Month-to-month developments in the foreign trade of the United States and Te~as are among the most impor­tant factors in the current business picture. In April, the latest month for which figures are available, there was a sharp drop in imports and a slight decline in exports. The net effect of these changes was to widen the ominous gap between imports and exports _and ~o continue .an unbalance which sooner or later IS gomg to require drastic readjustments in our State and national economies. Imports for the nation in April totaled $527 mi~li?n, the lowest volume since November 1947 and $139 m1lhon less than the record-breaking $666 million imported in March. Exports in April amounted to $1,122 million, or Sl9 million less than the March total of $1,141 million. The gap between United States exports and imports in a single month thus increased $158 million, a sizable figure when compared with total imports or total exports. It also widened the monthly difference in imports and exports to $595 million, whi~h was well over the average monthly gap of $509 million for the first quarter of 1948. Some progress had been made up to April in bringing exports and imports into line. Last year the export balance averaged $792 million per month. In recent months recovery in Europe and Asia has resulted in some increase in United States imports and some decrease in exports, but the American trade balance is still critical. Perhaps the most significant feature of the current situation for business to watch during the next few months will be the effect of the European Recovery Program upon exports from this country. April was the first month in which goods were shipped under this EXPORTS FROM GALVESTON AND HOUSTON (In tons) Source: Gal .. eston and Houston Maritime Associations, Inc. Percent change Apr. 1948 Apr. 1948 Apr. Mar. Apr. from from Port and product 1948 1948 1947 Apr. 1947 Mar. 1948 TOTAL ··-··----·-···-·· 587,075 527,814 719,259 -18.4 + 11.2 Galveston, total ----405,308 353,171 525,936 -22.9 + 14.8 Cotton -------12,777 24,055 20,109 -36.5 -46.9 Wheat --·----199,010 171,611 127,741 + 55.8 + 16.0 Other g ra in 13,049 ------28,727 155,951 -91.6 -54.6 Flour ------------50,307 31,593 58,556 -14.1 + 59.2 Sulphur ----105,9'78 65.295 119,894 -11.6 + 62.3 Other ~------24,187 31. 90 43,685 -44.6 -24.2 Houston, total ----181,767 174,643 193,323 -6.0 4.1 + Cotton and !inters --24,276 15,4 11 15,098 + 60.8 + 57.5 Wheat ------69,559 75,214 37,440 + 85.8 -7.5 Flour -------15,466 10,282 64, 164 -75.9 + 50.4 Rice and rice products 8,258 8,302 2,802 + 194.7 0.5 Carbon black 8,960 9,910 --7,855 + 14.1 9.6 Other -----55,248 55,524 65,964 -16.2 0.5 program, but the amount was small ($9 million). When added in with the decreases in exports under the Army civilian supply program, interim aid, UNRRA, a?d le~d lease and the increases under the Greek-Turkish aid proaram and the foreign relief program, there was a net fa){' of $24 million in noncommercial exports. How swiftly the transition will be made from the ?Id program to the new and how large will be the sums mvolved are the key considerations for business, not only in Texas but throughout the country. Of longer-run significance was the extension by Con­gress early in June of the Reciprocal Trade:Agreeme~ts Act for a period of one year. Although sh_ght mo~1fi­cations were made in the Act by the Republican maJOr· ities, further reductions in the American tariff are still possible with a consequent stimulation to imports and a lessening of the gap between imports and exports: Outbound tonna«e from Houston and Galveston Jumped 11.2% between Ma~ch and April. However,. April .exports this year were 18.4% smaller than exports m Apnl 1947. Whe~t. flour, and sulphur exports were primarily respon­sible for the March-April gain. The tremendous drop in other grains exported from these two port~ in April this year accounted for the over-all decrease m exports from April a year ago. During the first four months of 1948 exports from Houston and Galveston aggrega~ed 2.247.159 tons, as compared with 2,605,113 tons durmg the s~me month of 1947 or a decline of 13.8%. Neve~­theless Galveston ranked second among the country s ports in foreign freight shipments during April. The port of Galveston received 9,116 cars in the course of the month: New Orleans, 8,459 cars: Baltimore, 5,028 cars; San Francisco, 4, 785 cars; and Houston 4,287 cars. Some improvement in the State's export trade is to be expected. however, during the next s~veral mo1?t~s. L_ate in May the Economic Cooperation Adm1mstratlon authori~ed the shipment of $27,871,000 worth of cotton to four European countries. This authorization was the first maior financing of material for Europe's textile industry: Throughout the current cotton year exports have b~en held down by the shortage of dollars, the anticipation of ERP, and. the larµ:e stocks of cotton built up in most of the countries of Western Europe by the lar!!e shipments in 1945-46 and 1946-47. Only the last far.tor will continue to be significant this season. FOREIGN TRADE OF TEXAS PORTS (in mill ions of dollars ) Source: Bureau of the Census, U.S. Department of Commerce Percent change Custom district Ma r. 1948 Feb. 1948 Mar. 1947 Mar. 1948 Mar . 1948 from from Mar. 1947 F eb. 1948 E XPORTS, TOTAL .... Il3.3 114 .3 155.5 -27.1 - 0.9 El Paso --­·-------------­ 3.7 3.0 4.1 - 9.8 + 23.3 Galveston ----­----­----­ 71.7 73.6 97.5 -26.5 - 2.6 Laredo --------------------­ 27.3 21.8 40.6 -32.8 + 25.Z Sabine --------­-----­--------­ 10.6 15.9 13.3 -20.3 - 33.3 IMPORTS, T OT AL ---­ 14.6 18.0 8.8 + 65.9 - 18.9 El Paso -------------------­ 1.7 1.7 1.3 + 30.8 0.0 Galveston --------------­ 9.6 12.3 3.1 +209.7 - 22.0 Laredo ---­-­----------­ 3.2 3.9 4.4 - 27.3 - 17.9 Sabi ne -----------------­ 0.1 0.1 0.0 •Legs than $50,000. PRODUCTION Manufacturing lTbe volume of muiufacturlnc activity In any lnduatrlal area la • Hnaltlve measure of the chancea In ltualneH activity. The vol­ume of durable cood1 manufactured tends to fluctuate more vio­lently than the volume of nondurable goods auch as foods. and may aerve to Indicate cbangea In the bualneH situation at an early date. Since many manufacturinc lnduatrie1 vary recularly with the aeaaona, thla factor must be taken mto consideration In lnterpretlnc the chancea from month to month.) Jn response to the increasing demands for petroleum product5, crude oil runs to stills during May increased by more than 25% over May of last year. While gaso­line stocks at Texas refineries in May fell 4.2% below April, they were ahead of May 1947 by 18.0%. Latest estimates indicate that the summer bulge in gasoline demands will not be serious. REFINERY STOCKS* (in thousands of barrels) Source: The Oil and Gas Journal Percent change Section and item May 1948 Apr. 1948 May 1947 May 1948 May l!t48 from from May 1947 Apr. 1948 TEXAS Gasoline -----------­------­----­21,020 21,940 17,809 +18.o -4.2 Distillate --------------------·--­ 5.581 5,787 6,329 -11.8 -2.7 Residual ------------------------­ 6,369 6,175 5,610 +13.5 + 8.1 Kerosene -----------­----------· 1,992 1,910 2,267 -12.1 + 4.3 TEXAS GULF COAST Gasoline ----------------­-------­17,572 18,119 14,056 +25.0 -8.0 Distillate ----·-··--------------­ 5,152 5,369 5,996 -14.1 -8.9 Residual ------------------------­ 6,478 6,200 4,991 + 9.8 + 5.3 Kerosene ---­·------­-----------­ 1,375 1,368 2,014 -31.7 + 0.6 INLAND TEXAS Gasoline -----------------­------­ 3,448 3,821 3,753 - 8.1 - 9.8 Distillate --­-­-----------------­ 429 378 333 +28.8 +18.5 Residual -------------------------­ 891 976 619 +43.9 -8.6 Kerosene ----------------------­ 617 642 253 + 143.9 +rn.8 *Figures shown for week ending nearest last day of month. The regular monthly report on cotton manufacturing prepared by the Bureau of the Census showed that Texas cotton consumption for May was 6.8% behind April, but less than 1.0% under May 1947. In comparison with the same month a year ago, May 1948 active spindles increased 7.9% and average spindle hours increased 24.2%. Cottonseed received at mills in Texas during May was 23.3 % under the April receipts, but many times over the corresponding month in 1947. The amount of cotton­seed crushed during May was 25.5% below the previous month but considerably greater than May 1947. While the total milk equivalent consumed in the manufacture of dairy products for May was 10.0% over April consumption, it was 37.3% below the figure for May 1947. Ice cream production increased by 20.5% over April, but it also was below the figure for May 1947. There was a 19.0% decrease in production of American cheese for May under April and a 45.0% dedine from May 1947. Creamery butter registered a 14.5% increase in production over the April 1948 figure but a decrease of 42.6% under that of May 1947. COTTON MANUFACTURING Source : Bureau of the Census, U.S. Department of Commerce. Percent chanp May 1948 May 1948 May Apr. May from from Item 1948 1948 1947 May 1947 Apr. 1948 CONSUMPTION* Cotton --- -------------12,435 13,338 12,437 -0.01 -6.8 Linters ------------1,321 1,784 1,034 + 27.8 -26.0 SPINNING ACTIVITY Spindles in place 223,000 222,000 242,496 8.0 + 0.5 Spindles active -216,000 2.14,000 200,274 7.9 0.9 + + Total spindle hours ···-·······----· 87,000,000 91,000,000 76,200,390 + 14.2 4.4 Average spindle hours -~------­390 411 814 + 24.2 5.1 COTTONSEEDt Received at mills 4,235 5,521 206 + 1955.8 -23.S Crushed ·········-··· 52,484 70,473 6,602 +696.0 -25.5 Stocks at end of month --······-··· 59,967 108,216 20,635 + 192.0 -4U •In running bales. tin tons. MANUFACTURE OF DAIRY PRODUCTS Percent chanire Product Unit May 1948 Apr. 1948 May 1948 May 1948 May from from 1947 May 1947 Apr. 1948 TOTAL MILK EQUIVALENT* 1,000 lbs. 64,242 68,399 102,527 -37.3 +lo.o Creamery butter.... 1,000 lbs. 1,320 1,153 2,298 -42.6 +14.5 Ice creamt ····-······ 1,000 gals. 1,690 1,402 2.,054 -17.7 +20.5 American cheese ... 1,000 lbs. 869 1,078 1,581 -45.0 -19.0 All others ·········-··· 1,000 lbs. 3,455 2,982 5,790 -40.3 +15.9 *Milk equivalent of dairy products was calculated from production data. tincludes sherbets and ices. A slight decrease in the fl.our milling industry for April very likely reflects volume of stocks on hand. Big bread bakers see mounting production costs cutting into profits, and resistance to high prices beginning to affect volume of trade. Compared to April 1947, wheat grindings dropped 8.1 % to 3,533,000 bushels in April 1948. T4e Bureau's seasonally-adjusted index of wheat grindings slipped 1.5% in April to 148.1% of the prewar base period. WHEAT GRINDINGS AND FLOUR PRODUCTION Source: Bureau of the Census, U. S. Department of Commerce Percent chanre Apr. 1948 Apr. 1948 Item Unit Apr. 1948 Mar. 1948 Apr. from from 1947 Apr. 1947 Mar. 1948 Wheat ground 1,000 bu. 3,533 3,699 3,843 -8.1 -1.8 Wheat flour ············-··· 1,000 sks. 1,567 1,596 1,640 -4.5 -1.8 The volume of grapefruit juice carmed in Texas for the 1947-48 season (Nov. 1-May 29) was a little greater (8.5%) than for the 1946-47 season. Shipments, how­ever, jumped by 38.2% over the previous season, while present stocks are 7.7% below last year. TEXAS BUSINESS llEVlEW Through May 29, total production was 8,938,250 Construction cases, compared with 8,239,813 for the 1946-47 season. (BecauH of the accumulated deficiency of bulldln&' In all 1ectlon1 of the State, data on the volume of conatructlon work are aa n­ GRAPEFRUIT JUICE CANNING tremely Important part of the buelneH altuatlon. Bulldln&' permit• (In cu• of 24/ 2'•) or contract• awarded are &'e'llerally uaed to meaaure bulldlD&' activity, Source: Texas Canners Association but recent studies by the United States Bureau of Labor Statlatlca In­ dicate there la considerable la&' In he&'lnnln&' construction of bulldln&'• for which permits have been laaued, and that actual coat• are now 25% or more above the permit valuation. Loans by aavlD&'• and loan 1947-48 Percent change associations reflect the flnancln&' of realdentlal housln&'.) 1947-48 1946-47 from Item Season• Season 1946-47 At the end of May the value of construction contracts Production ----------·-···-8,938,250 8,239,813 + 8.5 reported by Texas contractors was 2.1 % below the value Shipments _____________6,313,326 4,569,292 !-38.2 Stocks _____3,387,306 3,670,521 -7.7 reported for April of this year, but was above that reported for May 1947 by 39.5%. Nonresidential •Through May 29. BUILDING PERMITS Cement production and shipments for Texas in April 1948 registered considerable gains over the correspond­May Apr. May City 1948 1948 1947 ing figures for April 1947. Production increased 16.6% and shipments increased 21.1 %. Stocks at the end of TOTAL ····-·········-·········$36,574,475 $43,639,529 $23,236,216 April 1948 were 35.6% above April 1947. Abilene 878,270 -------------------------789,180 249,335 April shipments of cement rose 5.6% over April, hut Amarillo --------------------1,280,715 627,145 646,055 Austin 1,833,850 3,211,325 1,4 13,750 stocks fell 13.9% to 670,000 barrels. The Bureau's index ---------------------------­ Beaumont ---------------------733,019 1,166,317 447,706 of cement production advanced 5.3% to 213.0% of the Big Spring -215,880 120,685 62,905 prewar (1935-39) base period, after adjustment for Borger 96,950 1,992,200 36,950 seasonal variation. Brownsville ------------122,694 389,393 85,780 Brownwood ----- ----------216,950 99,940 247,872 CEMENT PRODUCTION Bryan ------------------------153,390 166,315 219,910 (in thousands of barrels) Childress -------------44,350 89,199 6,800 Coleman --19,500 73,000 221,650 Source: Bureau of Mines, U. S. Department of Interior Corpus Christi 909,405 1,392,321 751,842 Corsicana 72,225 65,245 13,600 Dallas ------------9,059,360 9,048,137 3,143,856 P ercent change Del Rio --------·----------------19,485 80,210 20,200· Apr. 1948 Apr. 1948 Denison 48,860 64,071 44,808 Apr. Mar. Apr. from from Denton -----------------------417,400 564,585 189,500Item 1948 1948 1947 Apr. 1947 Mar. 1948 Edinburg 45,326 63,860 39,775 -·---------------­Production 1,181 1,044 1,013 + 16.6 +13.1 El Paso -----------------------1,076,035 1,094,080 587,345 Shipments ______l,288 1,220 1,064 +21.1 + 5.6 Fort Worth ---··------ 2,448,766 3,695,222 2,800,088 Stocks 778 494 +35.6 -18.9 Gainesville ------------44,700 149,133 33,860 -----------670 ----­ Galveston 221,144 430,855 231,515 -----------·····-------- Gladewater 54,115 44,768 2,375 ---··------------­ Production of lumber decreased 6.4% during May in Graham 23,500 15,750 17,810 ··------------­ comparison with April, according to data compiled by Harlingen ------------------157,043 301,253 207,925 Houston 7,966,350 7,707,340 5,248,821 the Southern Pine Association. Average weekly ship­-------------------­ Jacksonville -51,575 26,300 40,300 ment per unit was 222,705 board feet in May and 209,865 Kerrville 71,425 42,469 61,960board feet in April. Unfilled orders at the end of May Lamesa 29,500 21,800 25,150 were 749,150 board feet per unit, which was 3.3 times Lockhart ----------------53,015 103,000 11,875 Longview 92,714 478,765 164,980 the May shipments. ---------------­ Lubbock 960,715 1,091,739 1,154,487 The Bureau's seasonally-adjusted index of lumber McAllen -----------------------20,454 69,040 48,698 production was 73.7% of the prewar base (1935-39), or Marshall 87,284 171,900 89,494 6.1 % below May 1947. Midland -----------------402,206 436,750 166,600 Nacgodoches -----------63,600 172,750 24,000 LUMBER PRODUCTION IN SOUTHERN PINE MILLS New Braunfels ---------155,699 120,874 57,590 Palestine 40,574. 19,641 32,874 (in board feet) 248,760 224,350 Paris 273,885 53,500 28,375 Pampa ------------------------ 75,800 Source: Southern Pine Assoc..iation -------------------------­ P1air.view 103,000 282,850 69,750 ---·····-··-····-­ 244,835 161,390 Port Arthur --------------207,401 Percent change San Antonio 3,857,615 2,974,566 2,729,406 ------··-····-­ May 1948 May 1948 Sherman 140,692 114,677 92,342 May Apr. May from from Snyder 4,950 5,750 ----------····-···-----­ Item 1948 194 1947 May 1947 Apr. 1948 Sweetwater 90,860 137,900 43,700 -----···---------· Average weekly pr<> Temple 239,862 252,259 87,075 ---------·-···--------­ duction per unit-211,602 226,1 0 226,206 -6.5 -6.4 Texarkana -----------218,267 87,663 332,975 Average weekly ship-Texas City 78,770 1,181,125 338,290 ments per unit _ 222,705 209, 65 212,428 + 4.8 + 6.1 Tyler 585,090 884,625 217,067 Average unfilled or-Victoria 65,804 149,337 32,575 d.ers per unft, end Waco 743,316 874,580 563,325 of month ____ 749,150 756,702 772,658 -~.o -8.8 Wichita Falls 161,660 574,955 114,655 contract values for May were 100.7% ahead of values of May 1947. There was a regrettable decrease in resi­dential contracts. May 1948 was below April by 12.3% find 2.9% under May 1947. The value of building permits issued in 53 Texas cities in Mav decreased 17.l % from the April level. but the May volume of $36,157,475 was above the May 1947 totiil hy 55.6%. After adiustment for seasonal variation, the Bureau's index of b11ildin(.!: permits was 469.0% of the prewar base (1935-39) period in May. The index stood at 673.9 in April 1948, and 289.l in Mav 1947. Building permits in Dallas totaled $9,069.360 for the greatest volume in May, thus holding its lead for the third consecutive month. Although the majority of cities turned in decreases in dollar volume of permits between April and May, sig· nificant increases were reported for Paris, Texarkana, Brownwood, and Amarillo. CONSTRUCTION CONTRACTS Source : Texas ContractOT Percent change Type of building May 1948 Apr. 1948 May 1947 May 1948 May 1948 f rom from May 1947 Apr. 1948 TOTAL ·········­$73,794,894 $75,347,446 $52,898,189 + 39.5 - 2.1 Engineering .... 15,517,860 11,648,895 11,709,118 + 32.5 + 33.2 Nonresidential 35,444,118 37,660,201 17,662,871 +100.7 - 5.9 Residential ...... 22,833,416 26,038,350 23,526,200 - 2.9 - 12.S The number of loans made by Texas building and loan associations in May 1948 was 2.4% under that loaned in May 1947 and decreased fractionally (0.8%) from April to May 1948. Loans both for purchase and refinance decreased through May but recondition loans for May were 5.1 % above the number of April loans. The reported increased amount in dollars of most loans for Mav 1948 in comparison with May 1947 was the resuIt of the increase in size of individual loans. LOANS MADE BY SAVINGS AND LOAN ASSOCIATIONS" Source: Federal Home Loan Bank of Little Rock Percent change May 1948 May 1948 May April May from from Type 1948 1948 1947 May 1947 Apr. 1948 NUMBER, TOTAL 1,937 1,952 1,984 -2.4 -0.8 Construction 507 558 578 - 12.3 -9.1 Purchase ---------------·­ 804 810 851 - 5.5 - 0.7 Refinance ------­------­ 144 126 166 - 13.3 + 14.3 Recondition ----------­ 225 214 220 + 2.3 + 5.1 Other -----------­ 257 244 169 +52.1 + 6.3 AMOUNT, TOTAL $7,678,761 $7,927,315 17,405\365" + 3.7 - 3.1 Construction 2,529,831 2,707,698 2,529,103 + 0.03 -6.6 Purchase -------­- 3,550,790 3.511,628 3,331,334 + 6.6 +u Refinance ---·-------­ 495,415 469,676 605,462 -18.2 + 5.5 Recondition -----­ 369,810 349,921 245,383 +50.1 + 6.7 Other ----­ 732,915 888,492 694,083 + 5.6 - 17.5 Public Utilities (The consumption of electric power by lnduatrlal concern• la a measure of the volume of Industrial activity, alnce It may be aa. sumed that the amount of power used will be directly related to manufacturlnc volume. Residential and commercial power consump­tion show a seasonal variation due to the cbanclnc amount of lightinc needed.) Electric power consumption in Texas was 9.9% more in May 1948 than in April 1948 and increased 27.3% over May 1947. Use for industrial purposes caused the increases in both cases. Residential requirements for electricity in May were but 1.9% above April. ELECTRIC POWER CONSUMPTION" (in thousands of kilowatt hours) Percent change Use May 1948 Apr. 1948 May 1947 May 1948 May 1948 from from May 1947 Apr. 1948 TOTAL 597,153 543,315 469,066 + 27.3 + 9.9 Commercial -----­ 123,131 113,982 101,826 +20.9 + 8.0 Industrial ----------­ 279,966 263,506 227,325 +23.2 + 6.2 Resident ial ------·­ 89,887 88,191 76,359 + 17.7 +1.9 Other -----------­ 104,169 77 ,636 63,556 +63.9 +s4.2 •Prepared from reports of 10 electric power companies to the Bureau of Business Research. After adjustment for seasonal variation, the Bureau's index of total electric power consumption rose 4.4% to 326.0% of the prewar base (1935-39) period. The May index was only a fraction of a point below the February high. The Bureau's seasonally-adjusted index of industrial power consumption gained 2.0% in May to 294.5, a 23.2% advance over May 1947. According to the Federal Power Commission, the pro· dnction of electricity for public use in Texas amounted to 727,843,000 kilowatt hours in April, an 18.3% increase over the 719,302,000 kilowatt hours produced in March 1948, and a gain of 18.3% over the 615,024,­000 produc,ed in April of last year. On the other hand, United States production of 22,296,353 kilowatt hours in April 1948 represented a 5.0% reduction under March 1948. Power facilities in parts of the State began to feel the effects of unseasonably hot weather early in June, with its accompanying increase in demand for elec· tricity. Heavy industrial users were asked to curtail their use of electricity when a shortage in the Fort Worth area resulted from operational difficulties and the lack of rainfall. VALUE OF NATURAL RESOURCES PRODUCED Source: State Comptroller of Public Accounts Percent change Item May 1948 Apr. 1948 May 1947 May 1948 May 1948 from from May 1947 Apr. 1948 Carbon black ...... $ l,771,483 $ 5,310,686 $ 4,066,653 -5~.4 --66.6 Crude oil ·········----186,742,035 193,488,423 124,829,737 +49.6 -3.5 Natural and casing. head gas ------­14,545,613 12,137,258 9,861,538 +47.5 + 19.8 Natural Resources (The production of crude petroleum la a major lnduotry tn Te:na, and tlae cbansea ba tbe volume of production have a direct effect upoa the Income produced la tbe State. Fiirurea on the number of wall completiOlla by dietrlcts indicate the extent to which new eources of oil and iraa are llelq developed and the areaa of the State la wllicb clrillinir operation• are In proceaa.) There was a jump of nearly 50% in va/,ue of crude oil produced in May 1948 over that produced in May 1947. For this period th~re was an 8.6% increase in daily at'erage production of crude. The step-up in crude pro­duction is designed lo match unprecedented refining schedules. In the field of exploration this year (January through May) 4,505 wells have been completed as against 3,436 wells completed during the corresponding period of 1947. WE LL COMPLETIONS Source: The Oil and Gas Journ.el May 194 • Jan.-May (all wells) District Total Oil Gas Dry 1948 1947 TEXAS 946 582 25 339 4,505 3,436 North Central Texas ___ 3u 151 170 1,395 1,059 West Texas 254 216 3 35 1,202 820 Panhandle -------­ -!2 32 5 5 2.40 174 Eastern Texas 25 17 l 7 207 201 Texas Gulf Coast ____ 156 92 7 57 723 642 Southwest Texas ____ 145 74 6 65 738 540 • For four weeks ending May 29, 194 . North Central and West Texas led by far in the number of well completions for the year through May. It will be noted that Southwest Texas registered a sig­nificant increase over the comparable year-ago period. For the four weeks ending May 29, 1948, there were 946 well completions in all districts of the State. Oil drillings were most numerous in this total figure, with 582, followed by gas wells (339). Value of carbon black output in May was only one­third as great as the April figure, and was 56.4% under last year's May production. On the other hand, natural and casinghead production in Texas was 19.8% above April 19-18 and 47.5 % oYer May 1947. Dollar rnlue of carbon black output in May was $1,771,483. Crude oil totaled $186,742,035 and natural and casinghead gas, $14.545,613. The accompanying section on production will henceforth be prepared by Dr. Raymond K. Cas· sell, recently appointed Resources Specialist on the staff of the Bureau of Business Research. Also serving as associate professor of resources in the College of Business Administration, Dr. Cassell comes to the University with a background of teaching and research work in economic geogra­phy and other resource studies at the University of Michigan and Indiana Unh·ersity. For these reasons, the Bureau is especially bappy to an­nounce this newest addition to our faculty staff. AGRICULTURE Income (The amount of Income received by farmers la a compoalte meu• ure of tbe prosperity of airrlculture, takinir Into account both the volume of products sold and tbe prices received. Since the market· inc• of many products are concentrated In certain aeuona of the year, It is Important that the data be adjusted for aeuonal varia­tion• in order to show the basic chanl'es In tba situation of lll'l'lcul· ture.) Texas farmers received an estimated $106,629,000 from the sale of crops and livestock during May, for a 3.Q':k increase over April 1948 and an 8.9% gain over May 1947. The monthly upturn was very slightly above the regular seasonal rise from April to May, and resulted from a varied pattern of gains and losses among the several crop-reporting districts. The seasonally-adjusted index rose to 346.9 (1935-39=100) in May for the State, a new 1948 high. Cash income was greater in comparison with May 1947 for all districts except three. The best gains, however, were in the High Plains districts. FARM CASH INCOME Indexes, 1935-39 =100, Amount, Jan.-May adjusted for seasonal variation (in thousands of dollars) District May Apr. May 1948 1948 1947 1948 1947 TEXAS -··-·-346.9 331.1 322.3 $397,344 $386,205 1-N -··--··--­712.4 506.4 469.1 42,986 56,822 1-S ·---·--·-­443.9 371.6 334.1 47,253 31,503 2 ---------­459.0 500.5 409.1 36,082. 34,597 3 ---··----·­423.3 567.8 405.3 21,573 21,270 4 ------··--­213.1 194.5 207.7 41.959 40,523 5 -------300.0 251.8 348.9 17,641 17,4U 6 -··---------­196.7 2-!8.6 227.1 14,262 12,210 7 -----·--303.3 388.6 279.3 35,734 30,918 8 --------·-··-·· 430.6 280.9 417.-! 37,617 35,940 9 ---·--·-·-·­591.8 457.7 464.7 27,112 23.713' 10 ·---·----738.0 605.8 560.0 87,240 27,324 10-A ------· 306.4 400.5 404.3 37,885 53,961 NORTHERN HIQH PLAINS 1-N For the first five months this year, farm cash income in Texas totaled $397,344,000, a 2.9% increase over the like 194 7 period. Sizable increases in most districts were counterbalanced by sharp declines in the Northern High Plains and the Lower Rio Grande Valley, which last year were the districts of peak income. Marketings (The level of farm Income i. affected not oai,. 'by cha,..•• la prices, hut hy the volume of producte farmere eencl to market la a riven month. Data on ahlpmenta of farm product• muet aleo be uHd to explain the chances la the level of fum laeema from month to month.) Livestock shipments dropped 11.l% from April to May, and May shipments fell 14.9% under the com­parable year-ago figure. The monthly decline resulted from a reduction in cattle and hog movements and a SHIPMENTS OF LIVESTOCK (in carloads)• Source: Bureau of Business Research in cooperation with the Bureau of Agricultural Economics, U.S. Department of Airr!culture Percent chanire Classification May 1948 Apr. 1948 May 1947 Kay19(8 May 1948 from from May 1947 Apr. 1948 TOTAL SHIPMENTS --------11,013 12,390 12,935 -14.9 -11.1 Cattle ---------------------·­--·--­ 7,422 10,001 8,974 - 17.3 -25.8 Calves -------------------­-------­ 808 755 999 - 19.1 + 7.0 H ogs -----------------------­-----­ 936 1,049 701 + 83.5 -10.8 Sheep ----------------------­ 1,842 585 2,261 - 18.5 +214.9 I N T ERSTATE PLUS FORT WORTH ---------­ 10,222 11,673 11,733 - 12.9 -12.4 Cattle ------------·--···------­ 6,785 9,439 7,967 - 14.8 -28.1 Calves ----·----··--·-·-·-···---·--·--··­ 719 620 873 - 17.6 + 16.0 H ogs -----·--·----··-··­·-------·--­ 929 1,042. 693 + 34.1 -10.8 Sheep ---------------·--­ 1,789 572 2,200 - 18.7 +212.8 INTRASTATE MINUS FORT WORTHt ------­- 791 717 1,202 - 34.2 + 10.3 Cattle ---------------------­ 637 562 1,007 - 36.7 + 13.3 Calves -------------------­ 94 135 126 - 25.4 - 30.4 H ogs ---------­----------­ 7 7 8 - 12.5 0.0 Sheep ---------------------­ 53 13 61 - 18.1 +307.7 • Rail-car basis: cattle, 30 head per car; calves, 60; hogs, 80: and sheep, 250. tintrastate truck shipments are not included. Fort Worth shipmenta are combined with interstate forwardings to show the bulk of market disappearance for the month may be shown. RAIL SHIPMENTS OF POULTRY AND EGGS FROM TEXAS STATIONS (in carloads) Source: Ilureau of Bu1ines1 Research in cooperation with the Division ot Agricultural Statiatica, Bureau of Airrlcultural Economics, U. S. Department of Airriculture May Apr. May Claaoification 1948 1848 1N7 Chickens -----··-·--·-·-··-----­ 2 0 9 Turkeys -··-------·-------­ 4 0 19 Eggs-Shell equivalent• --·--··--246 822 470 Shell -----·--·-------·······--­ 2 2 16 Frozen ·-···-------····-----····-····--58 64 67 Dried --------·-··---­ 16 24 40 •Dried egga and frozen egga are oonverted to a ahell-e1nr equivalent on the following basis : 1 rail-carload of driod 0&'&'11 = 8 earlo&A!a of shell eirge and 1 car!Gad of frozen eirirs = i carloada of ahell ea'P· good (7.7%) advance in shipments of calves. In com­parison with May 1947, shipments declined for all items except hogs. Marketings of poultry and eggs continued relatively weak, on the basis of station agent reports in Texas. Only 2 carloads of chickens and 4 of turkeys were reported, and the volume of eggs (246 shell-equivalent carloads) was just half as great as a year ago in May. Interstate receipts of eggs at Texas stations, however, indicated an increase in the Texas imports of eggs from other states in comparison with last year. INTERSTATE RECEIPTS OF EGGS BY RAIL AT TEXAS STATIONS (in carloads) Source: Bureau of Business Research in cooperation with the Division of Airricultural Statistics, Bureau of AcriculturaJ Economics, U. S. Department of Airrlculture Type May 1948 Apr. 1948 May 19'7 TOTAL RECEIPTS­SHELL EQUIVALENT• ----------------­ 43 44 11 Shell -------------­----------­ 5 4 5 Frozen ---­-----------------­ 7 20 8 Dried ------------­---­-------------­ 3 0 •Dried egira and frozen eirgs are conTerted to a ahell-etr&' equivalent or. the following basis : 1 rail-carload of dried eirp = 8 carloads of shell "&'&'• and 1 carload of frozen eirll'• = 2 carloada of ahell Ol'P- Marketings of fruits and vegetables turned downward rather sharply from April to May, as crops of onions, potatoes, and grapefruit dwindled off. New crops of corn, cucumbers, tomatoes, and watermelons helped to mitigate tbe end-of-season declines in other crops, how­ever, so that the over-all reduction was 14.4% for the month. Shipments in May 1948 were just three-fourths as great as in May 1947, principally because of lagging shipments of onions and tomatoes. RAIL SHIPMENTS OF FRUITS AND VEGETABLES* (in carloads) Source: Compiled from reporta of Bureau of AaTlculturaJ Eeonomlca, U .S. Department of Agriculture Percent change Item May 1948 Apr. 1948 May 1947 May 1948 May 1948 from from May 1947 Apr. 1948 TOTAL ···········----·-----· 9,979 11,658 13,311 -25.0 -14.4 Carrots ----------­ 90 605 599 - 85.0 - 85.1 Corn ------------·-------­ 839 20 1,102 -23.9 t Cucumbers -----------­ 187 0 268 - 30.2 t Grapefruit -----··---­2,320 3,656 2,0:U + 14.6 - 86.5 Mixed citrus ----·--­ 115 172 90 + 27.8 - 83.1 Oriions ----------·-·-·-·-­2,938 3,881 3,801 -22.7 - 24.8 Oranges -----------­ 762 814 261 +188.1 - 7.6 Potatoes --···---­----­ 151 1,108 55 +174.5 - 86.4 Tomatoes ····----·-2,321 1 4,169 -44.8 t Watermelon -------------­ 120 0 t t All other fruits and vegetables ----­ 146 1,401 937 - 84.4 - 89.6 •Figures for oranges and grapefruit include both rail and truck shipm.ents. t Percent meanin1tlesa. Prices (ne priCM ncelvecl by fana_.. conatltute o... of tbe elements of ,_ caa Income. ...., of primary conc-to C.....,._ i. pricee ~and all bualneaamen relytq oa tJae fana market. Farmers .,. also c:oeceraecl witb tbe prices wlUch the,-have to pey for com­...ittlea used ID family maintenance uul production ahace these ,.be loelp to determine their na1 lacome.) Prices received by Texas farmers declined from April to May for 12 of 31 commodities listed separately in the accompanying table, increased for 16, and were unchanged for 3 items. In general, the decreases were mainly in grains and hay and dairy and poultry prod· ucts, and adYances were strong for most livestock items. PRICES OF TEXAS FARM PRODUCTS Source: Burau of Agricultur&l Economlca, U.S. Department o! Agriculture May15 April 15 Mas 15 Commodity Un.it 1948 19'8 1W7 Wbeat bu. $ 2.16 $ 2.23 $ 2.40 Corn bu. 2.27 2.25 1.67 Oata bu. 1.22 1.25 0.95 Barley bu. 1.74 1.77 1.81 Grain sorvhum cwt. 3.60 8.55 2.70 Rice bu. 8.40 3.30 2.29 Flaxseed bu. 5.70 5.70 5.70 Potatoes bu. 2.25 8.50 2.05 ..-eet potatoes bu. 2-90 2.70 2.55 Cott.on lint lb. 0.83 0.334 0.334 Cottonseed ton 93.00 9-0.00 88.00 Co'llVJ)e&& bu. 5.20 5.70 4.50 Pea.nut:& lh. 0.103 0.()9jS 0.093 H~ cwt. 21.10 21.00 22.60 Bee! cattle cwt. 22. 10 21.60 16.20 Veal calves cwt. 25.30 24.10 1 .50 beep cwt. 12.00 10.00 9.70 L&mbs cwt. 21.00 18.50 16.00 Mil< cows head 135.00 130.00 109.00 Cllickens lb. 0.268 0.268 0.263 Turkeys lb. 0.295 0.805 0.285 En:s doz. 0.368 0.389 0.368 Butter lb. 0.69 0.70 0.62 Butt.erfat lb. 0.74 0.73 0.57 M.ilk, wholesale cwt. 5.70 5. 0 5.20 Wool lb. 0.50 0.44 0.48 M.ilk., retAil Qt. 0.193 0.193 0.177 AU bay, loose ton 24.50 26.00 17.10 A.lfalia hay, loose ton 31.60 85.50 26.50 Ora.nges box 1.7 l. 2.79 Grapefruit box 0.85 0.29 0.77 There were no changes in prices received for chickens, milk, and flaxseed. In comparison with May 1947, nearly all farm product prices were up substantially, with notable exceptions in wheat, hogs, and citrus fruits. The over-all index of prices received by farmers for the United States as a whole declined less than 1% to 289<;'<: of its August 1909-14 average, or 6% above May 1947, according to the United States Department of Agriculture. At the same time the index of prices paid advanced slightly over April this year to a level 10% above a year ago. Cotton (The cotton halance aheet ahowa the basic dem-d and supply factora affectlns cotton, which lo aa outatandln1 elem..t In the farm Income of the State.) July is the last trading month in the old cotton year, and October is the first active futures trading month for the new cotton year which begins August 1. This transi­tion period is always a more or less critical time in cot­ton price-making because of the necessity of merging whatever old crop cotton there is on l)and, the carryover, with the new crop. Problems involved are quite differ­ent in different years depending on whether there is a large carryover to be merged with a prospective small crop or a small carryover to he merged with a prospec­tive larger crop. In the first instance, October futures contracts are usually higher than July futures and the problem of transferring old Jul y hedge contracts to Oc­tober becomes relatively simple. In the second instance old crop prices are higher than for the new crop and October, the first new crop hedge month, is lower than July, the last hedge month of the old crop. This situation generall y leads mills to buy on a "hand-to-mouth" basis and makes the carrying of unpledged stocks of cqtton an extremely risky business. The present situation is like the second instance. July futures are now, July 1, about 2.5 cents a pound above October futures, and have been as much as 5 cents above. In order to lessen the pressure for deliveries of spot cotton in June, July, and August before the new crop cotton gets into channels of trade in volume in Septem­ber, the Government has been postponing as far as pos­sible purchases of American cotton to ship to Europe under the recovery program, and mills as far as possible have been covering their sales of yarn and cloth with new crop purchases for forward delivery. COTTO BALANCE SHEET FOR THE UNITED STATES AS OF JUNE l, 1948 (in tho~nda o! runnlnii baJ• except u noted) Impor ts Final Consump- ExPorts Balance Carryover to irinninp tion to to as o! Year Aug. l June 1• Total June 1 June 1 Total June 1 19!8-U 11,533 122 11,623 23,276 5,759 8,107 8,862 U,414 1919-~0 18,088 187 11,481 24,651 6,591 5,931 12,522 12,129 IS.HI 10,596 150 12,298 28,0H 7,619 976 8,595 U,449 lt-041 12,367 256 10,495 23,118 9,208 969 10,177 12,941 INl-41 10,590 173 12,438 23.Wl 9,342 906 10,248 12,953 INJ-44 10,6 7 131 11,129 21,947 8,414 1,002 9,414 12,533 194'-'1 10,7~7 170 11, 89 22,786 8,109 1,319 9,4.28 13,308 1-.~. 11,164 805 8,818 20,2 2 7,641 2,776 10,417 9,865 IS.'--'7 7,522 214 8,513 16,249 ,630 3,155 11,785 4,504 194?48 2,521 ll25t 11,552 14,298 7,91 4 1,4 2t 9,396 4,902 The cotton year begins AUllUSt L •In 47 net weiiiht bale" f Nine months endinii APril SL ~~~~~LOCALBUSINI Percent change P er cent change City and item May 1948 May 1948 May 1948 from from May 1947 Apr . 194g City and item May 1948 May 1948 May 1948 from from May 1947 Apr. 1948 ABILENE: Retail sales of independent stores____ Department and apparel stores sales P ostal receipts ---------------------­---------$ Building permits --------------------------S 32,579 378,270 + 1.8 8.0 + 7.3 + 51.7 + 4.6 + 0.8 5.7 -52.1 BRYAN: Department and apparel store sales.. Building per mits --------------------------­$ Air express shipments ------------------­ 153,390 47 -4.1 -30.2 + 46.9 + 1.9 -7.8 + 38.2 Bank debits to individual accounts (thousands) ------­---------------------------$ End-of-month deposits (thousands )• $ Annual rate of deposit turnover________ Air express shipments ----------------­Unemployment Placements in employment --------·-­---­ 32,318 40,973 9.5 244 925 536 + 21.9 + 8.6 + 10.5 + 61.6 -36.2 3.8 4.8 + 1.6 5.0 + 0.8 11.9 + 19.9 CORPUS CHRISTI: Retail sales of independent stores.... Depar tment and apparel store sales.. Postal receipts ------------------------------$ Building permits ---------------------------$ Bank rlehits to individual accounts 63,727 909,405 + 4.5 6.0 0.9 + 21.0 + 0.2 + 0.8 7.0 -S4.7 Nonagricultural civilian labor force.. 18,118 - 5.9 + 1.5 (thousands ) ·-­----------­-----$ End-of-month deposits (t housands ) • $ 77,749 71,239 + 16.2. + 9.8 + 1.8 6.1 AMARILLO: Retail sales of independent stores___ + 8.1 + 3.2 Annual rate Air express of deposit shipments turnover______ ---------------­ 12.7 639 + + 4.1 1.4. + 1.6 + 31.2 Department and apparel store sales.. Postal receipts --------------------------------$ Building permits ------------------------­---$ 69,570 1,280,715 -2.9 + 22.4 + 98.2 + 1.8 + 7.9 +104.1 Unemployment ------------------------------­Placements m employment ---------­Nonagricultural civilian labor force_ 1,800 1,253 47,066 -25.0 + 60.0 -6.6 -28.0 + 21.8 -0.8 Bank debits to individual accounts (thousands) ----­-----­---------------------$ End-of-month deposits (thousands )• $ Annual rate of deposit turnover____ Air express shipments ------------------­ 91,860 82,220 13.2 677 + 32.3 + 8.2 + 17.9 + 62.7 + 6.3 2.9 + 6.5 + 22.0 CORSICANA: Postal receipts ---------------------------$ Building permits -----------------­-----$ Bank debits to individual accounts 8,158 72,225 -5.7 +431.1 -13.2 + 10.7 Unemployment -------------------------------­Placements in employment -----------­Nonagricultural civilian labor force.. 1,500 939 35,615 -11.8 + 52.9 + 21.1 -11.8 + 5.5 -0.1 ( thousands ) ------­-------------------­-$ End-of-mont h deposits (thousands ) • $ Annual rate of deposit turnover ___ 9,130 18,993 5.8 + 11.5 -2.0 + 16.0 -14.0 -1'8 -12.1 AUSTIN: Retail sales of independent stores___ .Uepartment and apparel store sales.. P"stal receipts -----------------­---------------$ Bu ilding Permits --------------~--------------­$ Dank debits to individual accounts (thousands) ---------------------------$ l.i:nd-of-month deposits (thousands )• $ .hnnual rate of deposit turnover____ Air express shipments ------------------­Unemployment --------------------------------­Placements in employment -------------­Nonagricultural civilian labor force... 119,411 1,833,850 96,064 103,755 11.2 657 1,580 1,195 44,640 + 15.1 + 2.8 -3.7 + 2.9.7 + 7.5 + 8.7 + 1.8 + 23.7 -25.2 + 35.0 + 1.3 + 4.8 + 1.8 -20.2 -42.9 14.1 + 0.6 14.5 + 3.5 3.5 + 14.0 + 0.2 DALLAS: Retail sales of independent stores.... Apparel stores ---------------------------­Automotive stores --------­------­General merchandise -------------­Drug stores -----­------­---------­Filling stations -----------------------­Florists ------------------------------­Food stores -----------------------­F urniture and household stores___ Lumber, building material, and hardware stores ----------­Eating and drinking places ----­ 0.3 1.7 7.8 + 2.9 2.6 + 31.9 -10.3 -0.3 + 17.7 + 5.1 0.6 4.4 2.7 8.9 7.8 + 1.3 + 9.6 0.3 1.6 + 19.0 -16.4 -11.6 BEAUMONT: Retail sales of independent stores____ Department and apparel store sales_ P ostal receipts ---------------------------$ 50,465 + 9.2. + 7.4 + 10.6 + 2.5 6.2 3.8 All other stores --------­-------­Department store sales -------------­P ostal receipts ---------------------$ 819,277 Building permits -----------$ 9,059,360 Bank debits to individual accounts 0.6 + 0.1 + 20.9 + 188.2 -11.6 5.6 1.7 + 0.1 BuiId ing permits --------------------------­----·S Bank debits to individual accounts (thousands ) -----------­--------------------­$ E nd-of-month deposits (thousands) • $ Annual rate of deposit turnover_____ Export and coastal cars unloaded_____ Air express shipments ---------­------­--­733,019 93,998 93,193 12.0 668 414 + 63.7 + 32.9 + 15.3 + 15.4. + 21.9 + 56.2 -37.2 0.1 2.0 + 0.8 1.9 + 26.6 (t housands ) --­----------------$ End-of-month deposits -----------------$ Annual rate of deposit turnover______ Air express shipments ----------­U nemployment ----------------­--------­Placements in employment --------­Nonagricultural civilian labor force 916,673 699,989 15.7 9,113 4,800 5,349 228,730 + 11.7 + 7.7 + 4.0 + 16.0 -53.4 + 51.7 + 4.2 7.6 + 0.3 8.7 + 10.7 -20.0 + 16.7 + 0.3 BROWNSVILLE: GALVESTON : Retail sales of independent stores.... Postal receipts ------------­---­--------------$ Building perm.its -------------­------------$ Export cars unloaded -------------------­Air express shipments ----------------­ 12-,412 122,694 139 536 + 8.2. + 9.7 + 43.1 -73.9 + 6.6 8.6 68.5 -21.0 -4.8 Retail sales of independent stores___ Department and apparel store sales.. P ostal receipts --------------------$ Building permits ---------------------$ Bank debits to individual accounts 50,057 221,144 + 6.5 2.1 4.0 4.5 + 3.6 + 4.6 2.2 -48.7 Coastal cars u nloaded --­--------------­ ~5 -76.2 (thousands) -------------------------$ End-of-month deposits (thousands )• $ 66,620 92,275 + + 9.9 2.5 1.0 + 0.1 BROWNWOOD: Retail sales of independent stores__ _ Department and apparel store sales.. Postal receipts -----------------------$ Building permits -------­-----------$ Air express shipments 11,686 216,950 56 + 1.4 + 6-8 + 10.5 12.3 9.9 + 0.4 + 0.9 + 117.1 + 19.1 Annual rate of deposit turnover _____ Export and coastal cars unloaded___ Air express shipments ------------­Unemployment (area) ----------­Placements m employment (area ) _ Nonagricultural civilian labor force (area) ------­-----------­ 8.6 9,386 463 1,500 1,099 58,075 + 3.6 15.3 + 4.0 31.8 2.0 + 8.8 2.3 + 3.0 + 19.3 0.0 + 10.1 + 0.2 *Excludes deposits to credit of banks. •Excludes deposits to credit of banks. CONDITIONS~~~~~ City and item FORT WORTH: Retail sales of independent stores_ Ap parel stores -·-··--­-­Automotive stores --------------­Florists ----------··-·-----­Food stores --·--­-----­Furniture and household stores__ Lumber, building material, and hardware stores -----------­Eating and drinking places ---­All other stores ------------­Department store sales ----­-Postal receipts --···-·-····-------$ Building permits ---·····----­··$ Bank debits to individual accounts (thousands) ---------------$ End-of-month deposits (thousands) • $ Annual rate of deposit turnover_____ Air express shipments -------­Unemployment -·-·-···-------·-­Placements in employment ---­Nonagricultural civilian labor force EL PASO: Retail sales of independent stores__ Department and apparel store sales_ Postal receivts ······-------­--$ Building permits ----------·$ Bank debits to individual accounts (thousands) -·--------$ End-of-month deposits (thousands) • $ Annual rate of deposit turnover --­Air express shipments ---------·-­Unemployment -·-----------­---­-­Placements in employment ---­Nonagricultural civilian labor farce Railroad carloadings: Inbound ----------­---­Outbound ----------··-----­-·-·---·­HOUSTON: Retail sales of independent stores_ Apparel stores -----------­­Automotive stores -------­­General merchandise Drug stores ·---·---·-------­Filling stations ---·---­Food stores ----·--------­Furniture and household stores_ Lumber, building material, and hardware stores -------­Eating and drinking places __ All other stores -------­Department store sales Postal receipts _________$ Building permits -------$ Bank debits to individual accounts (thousands) -------·------$ End-of-month deposits (thousands)•$ Annual rate of deposit turnover_ Export and coastal cars unloaded__ Air express shipments -----­Unemployment (area) Placements in employment (area) _ Nonagricultural civilian labor force (area) ---------­May 1948 313,382 2,448,766 311,582 274,797 13.7 2,034 7,200 4,074 133,295 94,336 1,076,035 114,345 123,026 11.5 1,423 2,500 1,139 51,574. 697 769 516,808 7,966,350 1,023,417 846,276 14.4 4,117 5,606 7,600 5,686 312,305 *Excludes deposits to credit of banks. Percent change May 1948 May 1948 from from May 1947 Apr. 19·48 + 3.4 7.3 + 0.1 + 7.2 7.0 9.6 + 34.7 + 2.1 2.2 1.1 + 5.6 + 6.5 + 11.9 -0.1 + 12.3 + 19.2 -28.0 + 12.9 + 1.8 -0.3 -1.3 + 18.0 + 83.2 + 17.3 + 18.1 + 2.7 + 5.6 ~ 16.7 + 63.4 + 2.6 + 6.6 + 0.4 + 12.6 + 0.6 + 3.0 + 3.4. + 3.3 + 14.1 + 12.6 + 7.8 + 11.9 + 0.4. + 10.3 + 51.7 + 29.9 + 12.8 + 14.3 -13.1 + 13.3 -30.9 + 18.6 + 3.7 -1.9 + 2.2 -14.8 + 40.0 + 8.3 + 12.0 + 3.0 + 3.7 2.1 1.0 + 1.5 -33.7 + 3.3 + 1.5 + 2.2 + 15.7 -15.3 + 16.2 + 0.2 0.8 + 3.3 9.2 1.6 6.9 + 6.6 9.7 0..2 3.8 + 18.9 + 0.4 8.3 7.0 0.3 2.1 5.3 4.0 + 4.1 + 6.8 + 4.0 + 21.2 -7.0 + 4.8 + 18.4. 2'.1 2.9 + 3.4 0.8 1.1 2.7 3.5 + 10.3 0.0 + 10.1 + 0.6 City and item LAMESA: Retail sales of independent stores.... Postal receipts -······--------------------------$ Building permits --·-------·----·---------$ LAREDO: Department a nd apparel store sales.. Postal receipts ···-··········-·····-·······-·-$ Bank debits to individual accounts (thousands ) -------·--·-----·--------­-$ End-of-month deposits (thousands)• $ Annual rate of deposit turnover·····-­Air express shipments ·------·-··--------­Electric power consumption (t housands of KWH) Natural gas consumption -------------­LOCKHART: Retail sales of independen t stores.... Department and apparel store sales.. Postal receipts ···-··········-················---$ Building permits --------------····--·-·-·$ Bank debits to individual accounts May 194.8 4,966 29,500 16,529 17,875 23,228 9.2 302 2,956 38,088 2.,182 53,015 (thousands) ---------­--------------···-$ 2,487,731 End-of-month deposits (thousands)• $ 4.,814,280 LUBBOCK: Retail sales of independent stores____ Department and apparel store sales.. Postal l"eceipts -----········-------------·------$ Building permits ·······-------------------$ Bank debits to individual accounts (thousands) -------·-··-------------$ End-of-month deposits (thousands)• $ Annual rate of deposit turnover ........ Air express shipments -----­---------­Unemployment ------------------------­Placements in employment ----------­Nonagricultural civilian labor force.. MARSHALL: Department a nd apparel store sales.. P ostal receipts ···-············-·······--····-­·$ Building permits ·······-----------------$ PLAINVIEW: Retail sales of independent stores___ Department and apparel store sales_ Postal receipts ··-··--·---·--------$ Building permits ···--·······---·----$ Air express shipments --------­PORT ARTHUR: Retail sales of independent stores_ _ Department and apparel store sales_ Postal receipts -----------------··----$ Building permits -----------····------­--$ Bank debits to individual accounts (thousands) ········-········------­$ End-of-month deposits (thousands)•$ Annual rate of deposit turnover__ Export cars unloaded ---·----­Air express shipments -------------­Coastal cars unloaded --------·--­*Excludes deposits to credit of banks. 43,998 960,715 59,461 68,226 10.3 455 850 675 25,921 12,150 87,28'1 7,934. 103,000 90 23,927 207,4.01 35,027 38,922 10.7 736 221 515 Percent change May 1948 May 1948 from from May 194.7 Apr. 1948 -6.6 -2.0 + 17.3 1.4 + 9.2 + 7.2 + 8.9 4.2 6.8 + 11.4 ~ 14.8 + 5.2 + 18.0 -0.4 +364.4 + 6.2 + 15.3 + 14..5 + 6.4 -0.1 -16.8 + 22.4 + 24.1 -2.8 + 69.1 -5.6 + 17.4 + 0.1 + 2.6 + 18.0 -2.5 + 4.0.6 + 8.2 + 10.7 + 47.7 + 7.1 9.6 0.01 + 28.5 + 9.5 + 0.4 + 7.0 + 70.8 + 5.7 + 15.5 -4.2 + 7.3 + 35.3 + 5.2 2.5 6.7 + 0.2 9.8 + 2.0 + 23.4 -30.9 + 2.4 + 13.1 -7.6 -4.8.5 8.6 0.2 2.5 2.5 6.5 -12.0 -11.6 -3.2 -10.4 + 31.1 0.0 + 4..0 + ·0.4 + 18.8 + 2.1 -49.2 + 2.0 + 15.2 -3.2 -40.2 + 84.3 + 1.S + 7.9 6.5 -15.3 + 2.5 1.3 + 2.9 + 4.0.2 + 18.8 + 39.9 I TEXAS BUSINESS REVIEW LOCAL BUSINESS CONDITIONS (Continued) ii.'.-. 1' L Percent change Percent change City and item May 1948 May 1948 May 1948 from from May 1947 Apr. 1948 City and item lllt.y 1948 May 1948 May 1948 from from May 1947 Apr. 1948 SAN ANGELO: Retail sales of independent stores _ Postal receipts ·-------------­--$ Bank debits to individual accounts 28,952 + 4.2 + 25.8 + + 1.8 2.4 TEXAS CITY: Retail sales of independent stores_ Department and apparel store sales_ -39.1 + 31.6 + 4.7 -29.0 (thousands) --­-----------------­·-------·$ End-of-month deposits (thousands)•$ Annua l rate of deposit turnoTer__ Air express shipments ------­31,149 39,240 9.7 574 + 33.0 + 12.8 + 16.9 + 75.5 + + 1.6 5.4 1.0 4.2 Postal receipts -------------$ Building permits --------­$ Unemployment (area) _____ Placements in employment (area) _ 9,068 78,770 1,500 1,099 + 18.8 -76.7 -81.8 2.0 -5.S -98.S o.o + 10.1 Nonagricultural civilian labor force SAN ANTONIO: Retail sales of independent stores__ _ + 2.2 4.5 (area) ------­-----­Coastal cars unloaded -·-----­ 58,075 395 + 8.8 + 0.2 + o.a Apparel stores ----------­-­Automotive stores ---·---­General mercha ndise stores ---­ -6.8 + 10.3 -0.4. 1.7 2.4 9.0 TYLER: Drug stores -----­--------­Filling stations ---­----­Food stores ------------­Furniture and household stores_ + 0.8 + 20.3 + 1.1 -7.0 + + 8.9 0.7 0.7 6.0 Retail sales of indepe.ndent stores_ Department a nd apparel store sales_ Postal receipts ·-----------$ Building permits ___________$ 30,455 535,090 + 5.9 -3.4 + 14.8 + 146.5 + 1.4 + 0.6 -12.0 + 39.1 Lumber, building material, and hardware stores ----------­Eating and drinking places ___ + 12.1 3.6 + 3.2 1.4 Bank debits to individual accounts (thousands) ---------$ l>.'nd-of-month deposits (thousands) • $ 88,795 52,108 + + 9.2 9.2 -9.2 + 2.7 AU other stores ------­ 2.6 + 8.4. A.nnual rate of deposit turnover_ 9.0 5.8 - 11.8 Department store sales ____ 2.5 8.2 A.ir express shipments _____ 476 + 28.8 +165.9 P ostal receipts --------------$ Building permits ---­---------$ 280,323 3,357,615 + 8.9 + 23.0 4.5 + 12.9 Bank debits to individual account• ( thousands ) ------­---$ End-of-mont h deposits (thousands) • $ Annual rate of deposit turnover _ Air express shipments -----­Unemployment -------­-------­Placements in employment ------­Nonagricultural civilian labor force.... 249,359 313,558 9.6 2,874. 5,000 3,043 156,411 + 7.0 0.1 + 7.9 2.8 -55.4 + 45.6 -1.8 + 0.4. + 0.02 + 1.1 + 0.3 4.8 + 10.5 + 1.0 WACO: Retail sales ot \n~ndent stores_ Department and apparel store sales_ Postal receipts ------------$ Building permits __________$ Bank debits to individual accounts (thousands) __________$ End-of-month deposits (thousands) •$ 66,586 743,316 48,064 62,655 + 8.9 + 5.3 + 2.9 + 32.0 + 16.0 + 2.4 +u + 4..0 -10.0 -15.0 + 3.6 + 1.2 TEMPLE: Retail sales of independent stores_ Depart ment and apparel store sales_ + 13.4. + 3.3 4.3 2.2 Annual rate of deposit turnover_ Air express shipments ------­Unem ployment --­-·-­-­Placements in employment ___ 9.2 302 3,000 687 + 10.8 + 69.7 -11.8 + 77.5 +u + 11.9 ~ 4.8 + 17.0 Postal receipts ------·----$ Building permits _____________$ 13,345 239,862 + 13.7 + 175.5 1.0 4.9 Nonagricultural civilian labor force 46,050 + 0.1 - o.s Air express shipments 83 + 33.9 + 23.9 TEXARKANA: WICHITA FALLS: Retail sales of independent stores__ Department a nd apparel store sales_ Postal receipts -------------$ Building permits --­-----$ 26,528 218,267 + 4.2 5.5 + 3.8 -34.4 0.2 + 6.1 3.1 +149.0 Retail sales of independent stores_ Department and apparel store sales_ P ostal receipts __________$ Building permits _________$ 41,802 161,660 3.2 7.0 + 5.7 + 41.0 6.7 + 6.7 1.1 -71.9 Bank debits to individual accounts (thousands) _________$ End-of-month deposits (thousands)* $ Annua l r ate of deposit turnover_ Air express shipments -----­Unemployment ----------­Placements in employment _ ___ Nonagricultural civilian labor force 23,360 21,659 7.7 121> 3,402 584 32,930 + 7.4 0.7 + 5.5 + 44.6 + 0.7 -18.7 + 1.8 8.2 1.7 6.1 + 17.6 3.5 + 5.8 + 2.0 Bank debits to individual accounts (thousands ) _$ End-of-month deposits (thousands)•$ Annual rate of deposit turnover_ Air express shipments ---­--­Unemployment --------­Placements in employment ___ Nonagricult ural civilian labor for ce 54,651 77,171 8.5 360 1,238 594 31,165 + 23.9 + 18.5 + 3.7 + 30.4. -31.8 + 43.8 + 9.6 + 2.1 + 0.1 + 1.2 + 17.8 -17.9 + 12.5 + 0.2 *Excludes deposits to credit of banks. •Excludes deposits to credit of banks. The cotton balance sheet now indicates that the carry­over Qf cotton of all sorts in all hands in the United States will be between 2.5 and 3 million bales on August 1. Tl}is is not far different from what it was last year, but in view Qf Government and mill policies mentioned above a stronger market may be expected in the early season this fall than tlJe last. Cold Storage (In both period• of •hortaa-e• and aurpluaes, the •torare boldlnr• of perishable food product. are Important becauH of their etfect • prices.) Holdings of eggs and fluid cream in Texas cold storage plants increased sharply during May, as stocks of butter, poultry, cheese, and plastic cream were reduced. FINANCE Bank Credit (Since 'bank credit i. saentfal to all busineas, the conditions of the co-cial banks and the Federal Raerve Banks i8 a si..Ufi· can llldicator of the s·tate of husineH. Changes in the volume of cndit that tbe banks have outstandintr reflect the state of business. The condition of the Federal Reserve Banks in like manner reflects the condition of credit available to commercial bMlka.) Total loans and investments of weekly reporting member banks in the 11th Federal Reserve District declined further during May to reach the lowest point since September 1947. The total drop of 0.9% was composed of a $16 million fall in loans, a $2 million decrease in total United States Government securities held, and a $1 million decline in other securities, com­bining to make a total of $2,169 million outstanding at the end of May, as compared to $2,188 million for April. Primarily as a result of this recent slackening in credit extension, the reporting banks' reserves with the Federal Reserve Bank increased by 3.8% to $486 million, a figure 27.6% higher than for May a year ago. Stability was the keynote for deposit accounts, with no change in time deposits and a drop of only 0.1% in _demand (and total) deposits. According to the summary statement of condition of the Federal Reserve Bank of Dallas, total resources of the bank increased during the month by 1.3% or about $22 million. Federal Reserve credit outstanding, repre­sented by United States Government securities owned and discounts and advances to member hanks and others, increased by approximately $12 million to a total of $945 million for the month. Gold certificate reserves, which include those in the hank's vaults, those held by CHANGES IN CONDITION OF W EEKLY REPORTING M EMBER BANKS Source: Board of Governors of the Federal Reserve System Percent change May 1948 May 1948 May 1947 from from from Item May 1947 Apr. 1948 Apr. 194.7 ASSETS Loans and investments -------+ 17.3 0.9 + 1.4 Loans ---------------­+ 36.1 1.6 0.0 Total U.S. Government securities_ - 6.2 + 2.9 + 2.3 Treasury bills --------­- 66.7 - 20.0 + 60.0 Treasury certificates of indebted­ ness -------------------­ 20.6 + 4.8 0.1> Treasur y notes -·---------­- 18.0 0.0 + 0.9 United States bonds ____ + 19.6 0.8 + 0.8 Other securities ---------­+ 27.0 0.9 + 3.5 Reserve with Federal Reserve Banks + 27.6 + 3.8 2.3 Cash in vault ------------+ 14.8 - 11.4 + 8.0 Balances with domestic banks ___ + 24.6 + 4.0 + 2.7 LIABILITIES Total deposits (except interbank) _ + 21"1 0.1 + 0.9 Demand deposits adjusted ___ + 21.9 0.1 + 1.8 Time deposits + 17.7 0.0 + 1.5 United States Government deposits + 35.5 2.3 - 22.5 Interbank deposits : Domest ic banks --------­+ 10.4 + 1.8 + 2 .• 2 F oreign banks ----------­+ 33.3 0.0 0.0 CAPITAL ACCOUNTS ----­+ 25.0 + 0.5 + 0.6 •Pe.rcentage comparisons based on week ending nea rest the close of calendar month. SUMMARY STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS (in thousands of dollars ) Source: Board of Governors of the Federal Reserve System Percent change Classification May28 1948 Apr. 28 1948 May 1948 May 1948 May28 from from 1947 May 1947 Apr. 1948 ASSETS Gold certificate reserves -------------­ 536,453 524,288 460,272 + 16.6 + 2.3 U.S. Government se­ curities ----­------­-----­ 937,341 926,817 885,794 + 5.8 +u Discounts and ad­ vances ---------------------­ 7,270 6,507 1,219 +596.4 + 11.7 Other cash --------------­ 8,537 10,657 10,982 -21.9 -19.9 Other assets -------------­ 131,297 131,652 95,543 + 37.4 -0.3 TOTAL ASSETS .... 1,620,898 1,599,421 1,453,760 + 11.5 + 1.3 LIABILITIES Federal Reserve notes 594,973 587,602 571,468 4.1 + 1.3 Deposits ---873,865 775,866 14.8 2.0 + ------------------891,007 + + Other liabilities -------108,383 110,448 82,098 + 32.0 -1.9 TOTAL LIABILITIES ___ l,594,363 1,571,915 1,429,432 + 11.5 + 1.4 Capital paid in ------7,635 7,612 7,088 7.7 + 0.3 + Surplus -------------------15,418 15,418 15,084 + 2.2 Other capital acccunts 3,482 4,476 2,166 + 61.5 -22.2 TOTAL LIABILITIES AND CAPITAL ACCOUNTS _______ l,620,898 1,599,421 1,453,760 + 11.5 + 1.3 the Federal Reserve agent as collateral for Federal Reserve notes outstanding, and those owned by the Dallas hank in the two clearing funds in Washington, increased by 2.3% during May to $536 million. The 1.3% rise in total liabilities and capital accounts was made up primarily of a 1.3% increase in Federal Reserve notes outstanding (thereby reversing the recent downward trend), and the 2.0% or $17 million, rise in deposits. It should he noted that the increment in deposits closely parallels the increase in member hank reserve balances commented upon above. This is because member bank reserves far overshadow in importance the other deposits in the reserve bank, including those Qf the United States Government, foreign hanks, nonmember banks, and certain government agencies. Bank Debits (Since the bulk of buslnee• transaction• are Httled hl' check, chanl'es In baak debit• to Individual account• represent chanl'es In tbe volume of transaction• and aro • bulc maaure of bualneH activity.) Bank debits for the 20 reporting cities declined by 3.0% during May to $3,391 million, a figure 18.l% above that for the corresponding month in 1947. At the same time, the annual rate of deposit turnover dropped from 13.5 times per year to 12.9 times, a decline of some 4.4%. Only 8 of the reporting cities experienced increases during the month. Percentagewise, the largest increase was in Amarillo, with a 6.5% rise, while Austin led the decreases with a 14.5% decline. Total debits in Houston exceeded the $1 billion mark for the third successive month. The seasonally-adjusted index of bank debits fell from the all-time high of 450.8% of the 1935-39 average set in April year ago. to an index of 438.1, a figure 18.l% above a BANK DEBITS* (in thousands of dollars) Source: Board of Governors of t he Federal Reserve System Percent change City May 1948 Apr. 1948 May 1947 May 1948 May 1948 from from May 1947 Apr. 1948 TOTAL __________$3,391,497 $3,496,691 $2,872,317 + 18.1 -3.0 Abilene -------­---­ 32,318 33,756 26,5rn +21.9 -4.3 Amarillo -------·-­ 91,860 86,452 69,432 +32.s + 6.3 Austin ----------­ 96,064 111,769 89,362. + 7.5 - 14.1 Beaumont --------·-­ 93,998 94,137 70,747 +32.9 -0.1 Corpus Christi -· Corsicana ----­-----­ 77,749 9,130 76,348 10,620 66,938 8,186 +16.2 +n.5 + 1.8 -14.0 Dallas -------------­ n6,673 992,183 820,466 + 11.1 - 7.6 El Paso -------------­ 114,345 122,819 97,440 +17.3 -6.9 Fort Worth ------­ 311,582 301,754 278,422 + u.9 + 3.3 Galveston ----------­ 66,620 67,293 60,594 + 9.9 - 1.0 Houston ····-·-······· 1,023,417 1,031,937 787,727 +29.9 -0.8 Laredo ---·------------­ 17,875 19,150 16,678 + 7.2 - 6.7 Lubbock -----------­ 59,461 67,233 48,587 +22.4 -11.6 Port Arthur -----­ 35,027 34,181 31,996 + 9.5 + 2.5 San Angelo -------­ 31,149 30,645 23,413 +33.o + 1.6 San Antonio ----­ 249,359 248,327 233,002 + 7.(} + 0.4 Texarkanat -------­ 23,360 25,455 21,743 + 7.4 - 8.2 Tyler ----------·-----­ 38,795 42,712 35,515 + 9.2 - 9.2 Waco --------------­ 48,064 46,407 41,428 +16.0 + 3.6 Wichita Falls ---­ 54,651 53,513 44,122 +23.9 + 2.1 *Debits to deposit accounts except interbank account.s. tlncludes two banks in Arkansas, Eighth District. Life lmurance Sales (Since the sales of life Insurance are relatively sensitive to the chances in con1umer income, they ma7 be uaed aa a meaaure of the consumer market.) Texans purchased 3.8% less ordinary life insurance in May than in the preceding month, but sales in the nation as a whole declined by nearly twice as much, or 7.0%. Sales in Texas amounted to $62,370 thousand as com· pared to $64,804 thousand in April; national sales were $1,196 million in May as compared to $1,287 million in April. Compared to May a year ago, Texas sales were 0.6'/o higher while national sales declined by 2.7%. Business Failures (The number of failures and the amount of llahllltlea vary In­versely with the prosperity of buoineaa and reflect In a oimple and direct manner what la happenlns to buslneu.) Four businesses with average liabilities of $52,000 each were reported as failures during May by Dun and Bradstreet, Inc. The 5 that failed during April had total liabilities of only $117 thousan,d, or an average of $23,000 each, and in May 1947 only 2 failed with total liabilities of $34,000. Business failures for the first five months of 1948 totaled 27, compared to 17 in the like period in 1947. Failures began to fall in 1941, reaching a monthly low in December 1945 for the country as a whole. An up· ward movement of the trend in commercial and indus­trial failures, however, has been evident since the middle of 1946. Business fatalities are still considerably below the level of failures prior to World War II. BUSINESS FAILURES Source: Dun and Bradstreet, Inc. May Apr. May Apr. 1948 19( 8 19(7 1H7 Number ·-··-·-···-··----·-·-·····-.. ········­ 4 5 2 Liabilities* .................................... ___ $206 $117 $ 34 $892 Average liabilities per failure• $ 52, $23 $17 $178 *In thousands of dollars. Corporation Charters (The Issue of corporation charters meuureo the addltlono to tho busineao population and reflects the state of optlmiam or pMolmlam of busineaamen.) The Secretary of State reports that charters were granted to 378 domestic corporations during the month, as compared to 387 in April and 230 in May 1947. Total capitalization of the new organizations declined from $9,390 thousand in April to $7,330 thousand in May. Classified according to nature of business, those organized for merchandising purposes led in number with 82, followed by real estate building with 48 and manufacturing with 38. A total of 52 foreign corpora· tions also received charters. Of those chartered, the smaller corporations were dominant, for only 10 were capitalized for amounts over $100,000, while 214 were chartered between $5,000 and $10,000 and 75 were chartered for less than $5,000. CORPORATION CHARTERS ISSUED BY CLASSIFICATIONS Source: Secretary of State May Apr. May Classification 1948 1948 19'7 POME1'TIC CORPORATIONS Capitalization• ----·--···-·····-······-····· 7,330 9,390 9,547 Number ... -·--··········-··---·······-··-···-·-·--· 378 387 230 Banking-finance ····-···-··--····---····­ 8 13 3 Constr1'.ction ------------------­-----------­ 18 20 15 Manufacturing ..--·-·····---·······-······­ 38 39 22 Merchandising ···-··--···-·-··-··---·-··· 82 85 48 Oil -·-··········--····-··-·-·-·····-·....--···­ 12. 26 1( P ublic service -----------------­---­--­ 6 2 9 Real estate building ·--··-------­ 48 47 84 T ransportation ------­----­----------­ 7 10 4. All others ... _····------·-·---·­-·--···--··­ 90 71 49 No capital stock ·--·-··-.. ···-··---··--·· 69 74 32 FOREIGN CORPORATIONS Number .......... ·----------··--··-·-·-··--·· 52 37 7 *In thousands of dollars. CORPORATION CHARTERS ISSUED BY CAPITALIZATION Source: Office of the Secretary of State Capitalization May 1948 Apr. 1948 May 19'7 Over $100,000 ...·-··-··--·········-····-·-·-··­ 10 14 26 $5.000-$100,000 ···-··..-·--···-··-····-·····-··-­214 223 125 Less than $5,000 ....-·-·-------··--·-···-­ 7& 69 43 No capital stock ··-·-·----.. ···--· .. ·····-··----·-·­Capitalization n ot specified --·--··-·­-- 69 l!> 74 7 32 4. TRANSPORTATION Rail (The mo•ement of l'ood• 'b7 ...U .la fundamentel to all 'bualneH .....dou, and c'banl'•• In the eum'ber of frell'ht ear• 1-decl reflect Male chan.... In the volume of 'business. The commocllt7 .,roupa are alplftcaDt for the Information thq l'lve on specific Industries. The ..i-ua-ua l'l'OUP lndudes manufactured l'oocl• aed la 1'enerall7 _.......,. a m-uro of the Yoluma of trade. Merchandlff l.cJ• ......ta Include the same t,.pe of l'Oocl• ab.lppecl In smaller Iota. Can unloaded for export rofteet tho ch•nl'•• ID tho volume of aporta.) NQ unusual developments in transportation have taken place in the past two months. Certain trends in traffic rates and costs are still apparent. The railroads were unable to supply all the cars required recently tQ handle all of the grain crop Qf the Southwest, but considering the deluge of wheat, the space of time during which it was offered and the shortage of elevator space in many places, the carriers performed excellently in most cases and better than in some previous years. The aforementioned trends, according to statistics issued by the Interstate Commerce Commission, are chiefly concerned with the steadily rising curves of cost and diminishing net revenues of the railroads. Despite the fact that total operating revenues of Class 1 railways for the 12 months ending in April 1948 were almost SI billion more than in the comparable period a year ago, net income after the deduction of federal income taxes was a)mQst exactly the same as the previous year. If much higher wages and costs of supplies, materials, and equipment are considered, the carriers may be said to be losing ground financially. They are also now facing an .unsettled operating union wage and rules dispute, wh1c~ keeps them technically under Army control, and a third round of wage increase demands from other ?Dio.ns. Inevitably such increases, if granted, will reffect m higher passenger and freight rates, which will in tum cause more business either to be diverted to other car· riers or to diminish in movement. Already such results are being experienced particularly in passenger traffic that ~e point of diminishing returns from wage and rate mcreases appears close at hand if not actually passed. REVENUE FREIGHT LOADED IN SOUTHWESTERN DISTRICT (in carloads ) Source: Car Service Division. Association of American RaiJroads P ercent chanire Item May 194 Apr. 1948 May 1947 May 1948 May 1948 from from May 1947 Apr. 1948 TOTAL ··---·· ····---·-···· 291,254 282, 77 + 3.0 + 2.1 Grain and grain products 19,503 1 ,528 19,668 - 0.8 + 5.3 Livestock ---·---------­ 7, 92 11,221 9,286 -15.0 -29.7 Coal --·-----------·--·-···-­ 26,696 16,297 22,588 +18.2 +63.8 Coke ------·------·---·--------­ 1,136 1,039 676 +68.o + 9.3 Forest products ----·----­ 22,932 22,892 23,748 -3.4 + 0.2 Ore --------·--··---­ 3,045 2,411 3,274 - 7.0 + 26.3 Merchandise Miscellaneous (I.e.!.) --­29,191 _____ l 0, 59 29,097 1 3,784 30,136 173,601 -+ 3.1 4.2 + - 0.3 1.6 According tg the Interstate Commerce Commission, in 1946 percentages qf inter-city freight-traffic in the United States were distributed as follows: Railways, steam and electric____ ______ ______ 68.1% Trucks, private and for-hire___ _ ______ _______ _ 7.5 Inland waterways, including Great Lakes__ 13.9 Oil pipelines_ __________ _ ___ _ ______ ______ 10.4 Airways, domestic, including mail, express 0.1 Total_____ __ _ ________ _ ___ ___ ______ __ ______ 100.0% Inter-city passenger traffic for 1946 was divided: Railways, steam and electric____ _______________ 18.72% Highways, total.____________ _________ __ _____ _______ 78.94 Commercial carriers.______ _______ ______________ 7.26 Private automobiles_____________ ______ ________ 71.68 Inland waterways----------------------------------------0.66 Airways -----------------------------------------------------1.68 Total._________ __ ____________________ __________ _______ 100.00% Air (Tho total volume of commodltl.. ab.lpped b7 air nprffa la onl7 a ver,. small percent•&'• of all commodltlH mo•ed, 'but tho rapid lncreeae In tho Uff of this t)'po of transportation makH Its l'l'OWth of l'eneral hatoreat to bualnoH,) The present Congress 4as reached the final stages in passing a bill to provide air parcel post service for domestic commerce. The Senate has passed such a measure and the House Post Office and Civil Service Committee has unanimously approved a similar hill. Approval by the House is expected shortly. The bill provides for air parcel post to be carried by the certificated domestic air lines. The independent air freight operators made a strong bid for the right to transport air parcel post, but.the certificated carriers of passengers, mail, and property were able to demonstrate that the net cost tQ the Post Office Department would be less if air parcel post traffic were given to them. This new business will add to gross revenues and will reduce the amount of payment required for the present air mail service. Estimates indicate that the 1947 average of 68 cents per ton-mile paid by the Post Office Department to the 16 domestic trunklines for air mail service will be reduced to 40 cents per ton-mile for the combined air postal service-airmail and air parcel post. The over-all savings for air service of the Post Office Department will be around $10 million annually. Proposed changes to users of the air parcel post serv­ice vary from first zone rates of 55 cents for the first pound plus 4 cents for each additional pound to eighth zone rates of 80 cents for the first pound plus 11 cents for each additional pound. Surface parcel post rates for first zone are 9 cents for the first pound plus 1.1 cents for each additional pound to eighth zone rates of 16 cents for the first pound plus 11 cents for each additional pound. Comparison of traffic data of the domestic airlines for the first half of 1948 with the same period for 1947 reveals that a leveling-off point has been reached in the development of new passenger traffic. This is in the face of a continuing upward trend in airline costs. With costs rising and passenger traffic no longer increasing, the prospect that the airlines will be able to operate at a profit is very slight. Losses were experienced in both 1946 and 1947. Relief must come either in the form of increased mail or passenger revenues or in the cur­tailment of expenses. Increased passenger fares at this time are not desirable. Increased fares now with two 10% advances during the past year would probably result in a reduction in total passenger traffic to the extent that gross passenger revenue would decline. Further increases in rates of mail pay will prompt opposition from an economy-minded Congress. The alternative seems to be the accomplishment of reductions in expenditures. Airline officials would do well to lend their supµort to a program of economy involving the consolidation of services at airports and the elimination of downtown ticket offices maintained principally for prestige factors rather than service. Air express shipments in Texas during May 1948 were 10.6% above April. AIR EXPRESS SHIPMENTS Source: Railway Express Agency Percent change Cit ies May 1948 Anr . 1948 May 1947 May 1948 f r om. May 1947 May 1948 f rom Apr . 1M8 TOTAL 29,149 26,273 2.5,898 12.6 10.9 -----·----------------+ + Abilene --­------------­------­ 244 242 151 + 61.6 + 0.8 Amarillo -------------------­ 677 555 416 + 62.7 + 22.0 Aust in --------------------­ 657 635 531 + 2.!l.7 + 8.5 Beaumont ---------------­ 414, 327 265 + 56.2 + 26.6 Big Spring 81 61 68 + 19.1 + 32.8 Brownsville Brownwood ---------------­------------­ 536 56 563 47 2,055 • -73.9 -4.8 + 19.1 Bryan ---------------------­ 47 34 32 + 46.9 + 38.2 Corpus Christi -----­ 639 487 630 + 1.4 + 81.2 Dallas Eagle ---------­-----­----­·­Pass --------------­ 9,113 55 8,233 so 7,855 • + 16.0 + 10.7 + 83.S El P aso ---------------------­ 1,423 1,426 1,348 + 5.6 - 0.2 F ort Stockton ---------­ 16 28 * - 42.9 Fort Worth --------­---­ 2,034. 1,758 1,706 + 19.2 + 15.7 Galveston --·------------·­ 463 888 445 + 4.0 + 19.3 Houston ----------------·-­ 5,606 5,082 4,948 + 13.8 + 10.3 Laredo ------·--------·-·---·-­L ong view -------------------­ 302 187 296 170 324 • - 6.8 + + 2.0 10.0 Lubbock -------·····------­ 455 347 269 + 69.1 + 31.1 Midland -----------------­ 278 292 185 +105.9 -4.8 Minera l W ells --·-----­ 44 SS 47 - 6.4 + sa.a Odessa ----··-----------­P alestine ····-------------­P aris ---------------------·­Plainview -------------­ 274 22 44 90 252 16 88 67 159 • •• + 72.S + 8.7 + 87.5 + 88.8 + 84.8 Port Arthur -------­--·­·· 2.21 186 209 + 5.7 + 18.8 Sa n Angelo ----·---·-··­ 574 599 327 + 75.5 - 4.2 San Antonio ---·-···---­ 2,874 2,866 2,957 - 2.8 + o.s Sweetwater -----------·­ 51 40 51 0.0 + 27.5 Temple -----------­·--­ 83 67 62 + 33.9 + 23.9 T exarkan a ·--·------­ 120 102 83 + 44.6 + 17.6 Tyler ------------------­Victoria -------------·­ 476 37 186 40 871 • + 28.8 + 155.9 -7.5 Waco ·-----------------­ 802 270 178 + 69.7 + 11.9 Wichita Falls ----­ 360 307 276 + 30.4 + 17.8 Other --------------­ 294 208 + 41.8 *Air express service originated at -.. later date. LABOR Employment (Employment statistics are amonr the moat Important lncllcaton of Texas business and economic activity. The estimates of total em­ployment in Texas Include all employees, both production workera and others, but exclude proprietors, officers of corporations, aacl other principal executives. More detailed statistics on T8llH em­ployment, pay rolls, hours, eamlnrs, and man-hours are analysed In a Supplement to the Review on Texas Employment and PaJ Rolls.) Estimates compiled by the Bureau of Business Research, in cooperation with the federal Bureau of Labor Statistics, reveal a continued upward trend in employment for May 1948. The total number of people employed iu nonagricultural jobs was 0.5% above April and 4.9% above May of last year. Manufacturing employment was up 0.9%, and nonmanufacturing sup­ported the trend with a 0.3 % gain for the month. In manufacturing, the largest employment gain for May was 10.1 % for transportation equipment, except auto­mobile. The 6.3% decline for apparel was the greatest single drop in manufacturing for the same period. Employment changes in mining and transportation and public utilities were relatively minor for May. The automobile industry, in the trade group, reduced worker requirements by 4.0%. The finance and service indus­tries made minor employment gains over April. Within the past six months 236 new industries in Texas have hired 3,900 new workers. Naturally the material demands of the new industries will also bolster employment in the established business patterns. Apparently Texas will show comparatively minor employment changes directly as a result of the third round of wage increases now that the United Automo· tive Workers and General Motors have established a workable patteren. Those industries subject to the Fa{r Labor Standards Act should give some consideration to the recent Supreme Court decision which makes some changes in previous concepts of overtime pay and how to figure it. It is possible that the decision will reduce the use of overtime, and create more employment through strict adherence to the 40-hour week. Pay Rolls (Pay roll figures are renerally recornlzed aa slrnlficant lndl~· tors of Income and purchaalng power by both economists and bu•I· nessmen. Emphasis on the maintenance of purchaslnr power u a roal for the country's postwar economy rives particular Importance to these figurea at this time.) Pay roll reports for May 1948 indicated some signifi­cant changes for durable goods manufacturing. Pay rolls for the lumber and timber group climbed 7.5%, while "other" durable goods jumped 24.2% above April. The only decrease for the group was the 2.6% for furniture and finished lumber. Nondurable manu· f acturers reported small pay roll decreases in apparel W.6% ) and "other" nondurable goods (3.5%). Remain· ing industries in tbe classification had pay roll increases for May over April, the highest of which was 10.4% for food. TEXAS BUSINESS REVIEW ESTIMATES OF NONAGRICULTURAL EMPLOYMENT Hours and Earnings IN TEXAS (Statlatlca 011 l:unuw ud earnfqa allow cloarl)' tlae affect• of th• (In thousands) Ulft of dM Stat•'• ac:onomF ud th• ........1 upward monmant of ..... .._ V-J Da)'. Averase houri,. eanalns• ara computed b)' Source: Bureau of Business Research in cooperation with Bureau of Labor Statistics, U.S. Department of Labar tllTidlD• th• total number of man·houra worked In reportln• ..tab· !IMmenta Into total Jiil)' roDa.) Percent change Average hours worked in tl}e manufacturing industries May 1948 May 1948 for May 1948 amounted to approximately 43.0 per May Apr. May from from Industry 1948 1948 1947 May 1947 Apr. 1948 week, while tlie median work week for the nonmanufac­turing industries was about 44.2 hours. TOTAL ···------······-·-····-····-1,692:7 1,686.0 1,613.5 + 4.9 + 0.6 Hourlr earnings were greatly increased during May Manufacturing ···-·······-··--··· 341. 7 338.7 324.8 + 5.2 + 0.91948, due in part to the lengthened work week, and in Durable goods ·--····-·····-144.4 141.6 138.6 + 4.3 + 2.0 part to the new pay-scale increases in labor agreements. Nondurable goods ____ 197.3 197.1 186.3 + 6.9 + 0.1 Nonmanufacturing ··--··-·--··l,351.0 1,346.3 1,288. 7 + 4.8 + 0.3 The greatest percentage gains were reported in food manufacturing (41.6%), hotels (41.2%), printing and Iron and steel ··-·-·----······ 19.4 19.7 17.3 +12.1 -1.6 publishing (34.2%), and nonferrous met~ls industries Machinery, except electrical 31.9 31.3 30.0 + 6.3 + 1.9 Transportation equipment, (26.7%). except automobile ........ 25.1 22.8 27.1 -7.4. +10.1 W eeklr take-home pay was correspondingly increased NoRferrous metals ···-·--··-11.2 11.3 9.8 +14.3 -0.9 because of the higher hourly rates and longer work week. Lumber and timber ·········-· 33.4 32.9 29.7 +12.6 + 1.6 Average pay checks in crude petroleum production were Furniture --····---·-·······-········ 10. 7 10.6 11.3 -6.3 + 0.9 Stone, clay, and glass ........ 9.6 9.8 9.8 -2.0 -2-.0 S77.75, a new all-time bigh, with petroleum refining Other durable goods ·········-· 3.1 3.2 3.5 -11.4 -3.1 and chemicals a close second and third. Textiles ··-···-·---·······-··-·---· 9.8 9.9 8.6 +a.o -1.0 CHANCES IN PRODUCTION WORKER PAY ROLLS IN SPECIFIED Apparel ·····--··----·-··-·--23.9 26.6 26.1 -4.8 -6.3 INDUSTRIES Food ·····-·--·---···--··-··----69.6 68.3 64.7 + 7.6 + 1.9 Paper and allied products.. 3.6 3.6 3.6 + 2.9 0.0 Source: Bureau of Business Research in cooperation with Bureau of Printing and publishing .... 20.3 20.1 19.4. + 4.6 + 1.0 Labor Statistics, U.S. Department of Labor Chemicals ----···-·--···-·-···-· 23.8 23.8 18.0 +s2.2 o.o Petroleum ···-··········-···-·----·-38.6 38.3 38.6 0.0 + 0.8 Other nondurable goods .... 7. 7 7.6 8.4 -8.3 + 1.3 Number Percent cbanire of reporting May 1948 May 1948 Mining -·--····-····---·-----··----94.4. 93.9 88.3 + 6.9 + 0.6 eetablisb­from from Crude petroleum and nat- Industry ments May 1947 Apr. 1948 ural gas production____. 87.8 87.1 82.0 + 7.1 + (}.8 MANUFACTURING Other mining ·······---··--6.6 6.8 6.3 + 4.8 -2.9 Durable goods : Transportation and public utilities .... ···········-·-----· 224.3 223.9 193.7 +16.8 + 0.2 Iron and steel ··--···-····-·--·--··--32 +13.1 + 0.9 Machinery, except electrical ··-·---36 +17.9 + 1.3 Interstate railroads -········ 66.8 67.1 67.6 -1.2 -0.4 Telephone and telegraph.. 32.1 32.4 12.9 +148.8 -0.9 Nonferrous metals ·-·--··---·--·---13 +16.6 + 1.7 Other transportation and Lumber and timber ---·-·--······---·--16 +24.8 + 7.6 Furniture and finished lumber ___ 22 public utilities ---······--· 125.4. 124.4* 113.2 +io.8 + 0.8 -3.1 -2.6 Stone, clay, and glass ·-----·----36 Trade ···-·····-··················-·-······ 391.4 393.7 399.3 -2.0 -0.6 +iu + 4.8 Other durable goods ---·--···----·-8 +26.0 +24.2 Wholesale ·-·······---------····-105.9 106.8 111.4 -4.9 + 0.1 Nondurable goods: Retail ·-·-·-··--···-·---········-· 286.6 287.9 287.9 -0.8 -0.8 General. merchandise ___ 67.4 66.6 62.7 -8.6 + 1.4 Textiles ·----·-········---·-·-----16 +21.6 + 0.4 Foods and liquors -----­39.4 40.5 46.6 -13.4 -2.7 Apparel -----···---···-·----30 + 1.6 -0.6 Automobile ···--·-··········-24.1 25.1 24..4 -1.2 -4.0 Food ---··--·-·····---·--·-·------130 +32.6 +io.4 Apparel 24.6 23.9 21.6 +13.9 + 2.9 Paper ··--·-··-···--··-·-·-··---16 +io.6 + 2.8 Other retail trade ··----140.0 141.8 133.7 + 4.7 -1.3 Printing and publishing --·---35 +33.9 + 2.9 Finance and service --------293.1 290.6* 271.9 + 7.8 + 0.9 Chemicals -·-·-·-··-·--------55 +34.1 + 3.9 Bank and truat com- Petroleum refining --------------------84 +16.9 + 6.6 Other nondurable goods ·-··-----7 -0.2 -8.6 panies ····················-·-·--18.6 18.6 16.7 +11.4. 0.0 Insurance ··-· ....................... 26.2 26.1 23.7 + 6.3 + 0.4 NONMANUFACTURING Reel estate and other fi- National banks ···-·--·-------3 + 12.3 + 1.9 nancial agencies -·····----25.9 25.6 22.0 + 17.7 + 1.2 Brokerage --··--·--·-··-·····-------4 +25.6 +20.6 Crude petroleum production ·----34. +31.8 +14.9 Hotels ······----····-············-·--24.2 24.1 25.0 -S.2 + 0.4. Other personal service .. _ 61.0 50.6 63.6 -4.9 + 1.0 Dyeing and cleaning --···-------7 + 5.7 + 8.3 Medical services ··--···-··· 32.1 31.9 28.5 +12.6 + 0.6 Hotels* ·-·-·--··----·---------8 + 14.3t + 0.7t Other business and pro- Insurance ------------------93 +14.4 + 1.9 fessional services --------116.1 114.8 102.4 +13.4 + 1.1 Cotton compresses -----------6 +49.1 -17.4 Contract construction ........ 106.0 102.4. 94.1 + 12.6 + 3.6 Laundries ··-········-·-····-·-··------8 + 5.9 + 2.8 Government 241.8 241.8 241.4 + 0.2 0.0 Public utilities ··--·----·------172 +31.6 + 2.7 Quarrying --·-··-·-·---------12 +16.9 + 2.1 *Revised. Retail trade* ---·-····---·--·-----336 + 9.6 + 0.8 Wholesale trade• ------·-----122 +13.1 + 0.4 Air transportation ----------------+s3.6 + 8.6 Three important developments vitally affect the nutional wage and hour picture: the escalator wage *Figures cover all employees except proprietors, firm members, agr-::ement signed by General Motors; the "overtime-on­ officers of corporations, or other principal executives. tCash payments only; the additional value of board, room, and tips overtime" decision of the United States Supreme Court cannot be computed. in the longshoremen's test case; and the close of this session 0£ Congress without action Qn the Fair Labor MAN-HOURS WORKED IN IDENTICAL MANUFACTURING Standards Act amendments. ESTABLISHMENTS The escalator clause of the General Motors contract Source: Bureau of Business Research in cooperation with Bureau of is nothing new, but its acceptance by a large interna­ Labor Statistics, U.S. Department of J,abor tional union and by a large manufacturer may he the beginning of a trend of tying wages, one of the largest operating expenses, to economic and business indexes. Number Percent chann This close tie-in would allow for quick smoothing out of of reporting May 1948 May 1948 inequities tq either the manufacturer or the laborer in establl•h· f rom from Industry ments May 1947 Apr. 1948 times of quickly rising or falling price standards. The "overtime-on-overtime" decision is still too new TOTAL ····················-····-········-···-···-···-····-448 + 5.9 + 4.8 for definite future predictions. As it stands, all the pay Durable goods: a worker receives each week, at whatever the rate (even Iron and steel ·········-················-········-·········· 82 + 3.2 -0.2 though part of it was so-called "overtime"), must he Machinery, except electrical ·····-··········-····-35 + 3.1 + 0.6 Non-ferrous metals ·········-··············-········-····· 12 + 5.4 + 1.9 averaged out and then overtime must he paid at l 1h times Lumber and timber ···-·······-··-----------------------15 +12.8 + 5.9 the average. This may effect real back pay increases for Furniture and finished lumber ···-------------· 21 -6.1 -0.9 at least the past two years (statute of limitations) if the Stone, clay, and glass -------------------········-····· 34 -0.8 + 1.0 decision is binding on all interstate industry. Other durable goods ---------------------·-···-···-····· 7 + 9.8 + 18.1 Nondurable goods : The 80th Congress adjourned without amending either Textiles --···-······-------···------------------------------····· 12 + 8.7 -0.1 the present minimum wage (40 cents an hour in inter­ Apparel ···-····--·--·---·····-···-·····-·-·-··-····-····-27 -8.8 -0.8 state commerce) , or redefining "overtime" rates in the Food ···-·--·····-····-····-······-·-····-························· 117 +10.8 + 5.1 light of the longshoremen's case decision. Without the PaPer and allied products --------··············· 8 -7.4 -2.8 Printing and publishing -----·-···---········ 33 +18.7 + 2.6 desired amendments, many businessmen must now cut Chemicals -·-·-------------·-··········--···-·····-· 54 +21.1 -u down on all overtime work, and rewrite present labor Petroleum ·········-·-·····-·······-·-········----·----84 + 8.1 +u agreements so that odd-hour and holiday work are Other nondurable goods -·-·-·······-·-···---··-· 7 + 2.7 -0.9 understood to be wage differentials and not overtime rates of pay. HOURS AND EARNINGS" Source: Bureau of Business Research in cooperation with the Bureau of Labor Statistics, U. S. Department of Labor Average weeklyhour11 Average hourly ea rninp (ln cents ) Average weekly earnlnp (in dollars) Percent chan2e May 1948 from May 1947 Industry May 1948 May 1947 May 1948 May 1947 May 1948 May 1947 Weekly hours Hourly earnfnge Weekly earnings ¥ ANUFACTURING Durable goon•: Tron and ateel -- ------­ 44.3 43.3 117.5 106.6 52.05 46.l& + 2.3 + 10.2 + 12.8 MAchinery (e'.wn 7,600 7,600 11,000 Long,.;ew 1,725 l/i15 1, 00 Lubbock 50 ·o 900 S&n Antonio 5,000 5,250 11,200 Teu.rkana 3,402 3,525 3,3 0 Waco 3,000 3,150 3,400 Wichita Falls 1,23 1,507 l , 15 Unemplo yment (Eatimatu of unemployment ln various ar... of the State are CIUT9Dtly made by the Texas Employment Commission. Data on the ~-tof unemployment benefits also provide a roush measure of -...,.,..ent ln Texas, although only employees in establishments omplo,.tnc 8 or more workers for 20 or more weeks per year are WYered.. Veteran.a' claim actions and disbursements are less in­chaaJye, but throw lisbt -the important pn>blem of veteran re­.....,._t.) The high level of present business activity is further subslantiated by the Texas Employment Commission report for May 19-IB, which shows a 9.2<'( decrease in unemployment from April 19-IB. and a 33.l':c decrease from May 1947. At the end of l\lav 19-IB, only 4-1,620 persons were unemployed in the 15. labor market areas of Texas. Vnemployment compensation benefits (excluding vet· erans claims) of S+IB,004 were paid to Texans in :\lay 1948, a decline of approximately 167c from April 19-IB. which is in proportion to the increased placement and employment activity. Total collections deposited were $3,380,631, which left Sl86.0-Ui.593 arnilable for benefits at the end of May 19-IB, as compared to the $183,118,040 available at the end of April. . The numher of applications filed by \·eterans was again down substantially from preceding months. Onlv 25.9% from the 1,910 filed in April 1948. Allowances paid out in May 19-18 totaled $1,290,492 to unemployed, and S606,85-1 to self-employed veterans . An interesting outgrowth of the coal walkout in the national unemployment picture is that General Motors will lay off 200.000 men for 10 days. The company spokesman blamed the layoff on lack of steel, which is directh· traceable to the coal walkout. Placements (The number of placcmer.ts reported by the Texas Employment Commission indicates roughly tbe relationship of the supply of and the demand for jobs in various parts of the State. Placements do not include private placements in business and industry, but only those made through the State Employment Service. Furthermore, the number of placements made should not be considered as addi­tions to total employment. since many of them represent shifta from one Job to another.) Placement acti,·ity \\·as again up substantially over the previous month. sho\\·ing a 13.2';(-increase in May 1948 from April 19-IB. Comparison of May 1948 with May 194 7 shows that placement activity was up 27.6%. Only the Galveston-Texas City area (down 2.07c ) and the Abilene area (down 3.8<;C ) had less placement activity during May 19-IB than in May 1947. Total place­ments for the month in the 15 labor market areas were 27.409. as compared to 24,220 for April 1948. PLACEME NTS IN EMPLOYMENT Source: Te..xas Employment Commission P er cent change Area May 194 Apr. 1948 May 1947 May 1948 lllay 1948 from from May 1947 Apr . 1948 TOTAL -----­27 ,409 24,220 21 ,4 + 27.6 + 13.2 Abilene ---·--·­ 536 447 557 - 3.8 + 19.9 A mariUo ----­Austin -----­ 939 1,195 90 1,04 614 85 + 52.9 + 35.0 + 5.5 + 14.0 Corpus Christi --­ 1,253 1,029 7 3 + 60.0 + 21.8 Dallas ------5,349 4,5 4 3,525 + 51.7 + 16.7 El Paso 1,139 95 697 + 63.4 + 18.9 Fort Wor t h 4,074 3,505 3,609 + 12.9 + 16.2 GaJveston.Texas City -1,099 998 1,122 - 2.0 + 10.1 H ouston-Baytown 5,6 6 5,166 4,794 + 1 .6 + 10.l Longview Lubbock an Antonio 606 675 3,043 570 649 2,754 7 0 575 2,090 -22.3 + 17.4 + 45.6 + 6.3 + 4.0 + 10.5 Texarkana Waco 534 6 i 507 5 7 657 3 7 -1 .7 + 77.5 + 5.3 + 17.0 Wichita Falls 594 52 413 + 43. + 12.5 Labor Force (Estimates of the nonagricultural civilian labor force are mad• currently for the State's principal labor market areao by the Texao Employment Commission. Labor force data, lnd!catlnc the total supply of labor in these areas, include all employed workers, as well ao all others who are available for jobs and who are willing and able to work.) There was only a slight change in rwrwgricultural cfrilian labor force in Texas from April to May, accord­ing to reports from the Texas Employment Commission covering 15 labor areas. There were 2.i';l more people m the labqr force than in :i\lay a war ago, however. NONAGRICULTURAL CIVILIAN LABOR FORCE Source: Texas Employment Commission Percent chanll'e Area May 1948 Apr. 1948 May 1947 l\lay 1948 lllay 1948 from from May 1947 Apr. 1948 TOTAL -·----1,244,973 1,239,442 1,212,668 + 2.7 + 0.4 Abilene ·------­- 18,118 17,869 19,262 - 6.9 + 1.6 Amarillo ----­ 85,616 36,663 29,400 +21.1 - 0.1 Austin -----­ 44,640 44,672 44,072 + 1.3 + 0.2 Corpus Christi -----­ 47,066 47,424 50,880 - 6.6 - 0.8 Dallas -------­-----­ 228,730 228,080 219,490 + 4.2 + 0.8 El Paso -------­ 51,674 61,355 50,260 + 2.6 + 0.4 Fort Worth -­ 133,296 133,002 180,887 + 1.8 + 0.2 Galveston-Texas City -------­ 58,075 67,948 53,366 + 8.8 + 0.2 Houston-Baytown - 312,306 310,686 301,197 + 3.7 + 0.6 Longview ----­ 23,078 22,663 22,838 + 3.8 + 1.8 Lubbock -------­ 25,921 26,812 26,900 + 0.1 + 0.4 San Antonio -----·-··­ 166,411 164,911 159,332 - 1.8 + 1.0 Texarkana ----­ 82,980 82,2.95 82,863 + 1.8 + 2.0 Waoo -----­ 46,050 46,181 46,995 + 0.1 - 0.3 Wichita Falls - 31,165 31,102 28,481 + 9.6 + 0.2 Industrial Relations (A knowledl"• of current developmenta In lnduatrlal relatlona ia nec:eaaary to llll undentandlnl" of the State'a labor pic:ture.) The "third wage round" continued to roll on during May and June. Agreements in the 11 cents-to-13 cents pattern continued to spread. The recent settlement by Firestone with the United Rubber Workers (C. I. 0.) at 11 cents was interpreted as the probable price for new contracts, and labor peace, for the entire industry. Among the major companies whose agreements are still unsigned are Alcoa, Ford, and Westinghouse. In the automobile industry the Chrysler pattern of 13-cents-an-hour increase seemed to be attracting more of a following than the General Motors formula based on a cost-of-living standard. This is not too surprising since the General Motors plan is still quite new tq have immediate acceptance in many other managements. Kaiser-Frazer threw out their bonus plan of $5 a car and set up for the first time in the automotive industry a major social security plan financed entirely by man­agement. The company will put 5 cents an hour into a new social security fund to be administered jointly by Kaiser-Frazer and the United Automobile Workers. It will be used to pay costs of hospitalization, sickness and accident insurance, prepaid medical service, life insur­ance, and other social security benefits. The U. A. W. praised the Kaiser-Frazer plan. The United States Supreme Court jolted management with a new wage-hour decision. The decision raises a dark spectre of "overtime-on-overtime" liability. The decision came out of two overtime test suits filed by New York longshoremen, but the ramifications may disturb contract relations in at least a score of other industries. In a 5-3 decision the majority held that the "regular rate" on which overtime is to he figured must be determined by dividing total weekly compensation by the number of hours the man worked. The overtime then is computed at l 1h times the newly figured "regular rate" which actually gives "overtime-on-overtime." GOVERNMENT State Finance (Statiatlca on State finance are cloaely connected with chanl"ea la the level of bualneas activity. State occupation, production, UH, and sales taxea and license '"• vary dlrectly with chansfnl" bual. neas condltiona.) · Total revenue receipts of the State, as reported by the State Comptroller, were $47,909,041 for May and compared with $41,440,730 for May 1947. Collections for the nine months of the current fiscal year were $387,924,428, as compared with $284,448,678 for the corresponding period last year. This is an imposing increase of 36.4%. The re-levy of tqe ad valorem tax for general revenue purposes mainly accounts for the 83.1 % increase in the receipts from that tax, and the fact that 1948 is a general election year is the chief explanation for the increase in poll tax collections. The three natural resource taxes, on crude oil, sulphur, and natural and casinghead gas, yielded for the nine months of this year $71,915,477, or an increase of 55% over those of the corresponding period last year. If to these be added $29,771,558 of receipts due to the equity of the State in natural resources ($18,155,323 from mineral leases, rentals and bonuses; $10,381,991 from oil and gas royalties; $884,647 from land sales; and $349,647 from surface rights and sales of sand, shell and gravel); natural resources contributed directly $101,687,035 or 26% of the total receipts of the fiscal year to date. Some of the receipts of the ad valorem tax were from natural resources and if they were ascertain­able and added they would make even larger the role which natural resources play in the finances of the State. REVENUE RECEIPTS OF STATE COMPTROLLER Source: State Comptroller of Public Acoounts September 1-1\lay 81 l\lay Percent Item 1948 1047-48 1946-47 change TOTAL ----··--·-·---·--$ 47,909,041 $387,924,428 $284,448,678 + 86.4 Ad valorem tax ---·-·-· 88,134 27,246,522 14,884,216 +83.1 Crude oil production tax -·----------7,837,650 62,894,290 39,726,597 + 58.8 Motor fuel tax (net) 6,656,404 51,860,398 46,696,292 + 11.8 Cigarette tax and Ii­ cense ·---·----·---·· 1,945,760 16,690,817 15,351,824 + 8.7 Alcoholic beverage taxes and licen ses _ 899,025 11,927,963 11,462,774 + 4.1 Mineral ]eases, ren... tals, and bonuses__ 18,551 18,156,323 4,877 ,833 +272.2 Interest on securities owned -·-----------·--121, 717 4,144,889 3,898,898 + 6.4 Unclassified receipts from county tax oollectors• ------78,578 273,796 477,612 -42.7 + 78.8 Federal aid-highways 3,616,880 28,289,714 13,026,101 Federal aid-public welfare ----·· .. 4,537,878 41,323,347 37,424,149 + 10.4 Federal aid-public education -------294,798 16,114,301 9,194,820 +76.8 Unemployment com­ + 20.6 pensation taxes __ 3,888,207 17 ,668,568 14,668,642. All other 18,182,616 96,982,091 78,924,649 + 81.2 •Credit. N ell'ative balance due to excess of clearance over recelpta. Selective sales taxes, or those on motor fuel, cigarettes, alcoholic beverages, automobiles, cosmetics, new radios, ·and playing cards, produced $88,345,813 of the receipts of the fiscal year to date. Federal aid has thus far amounted to $82,471,549. Natural resources, sales taxes, and federal aid together accounted for 70% of total revenue receipts. Governmental cost expenditures in May were 136,691,505, and in the fiscal year to date $312,862,295, ~ch being considerably below the receipts of its period. The net cash balance in the general fund on May 31, 1948 was $62,024,507. · Federal Finance (F.._.. collecdoaa of Income, pay roll, and excise tuea vary ~ly wltla tile level of bualnese prosperity. Durlns tile war ,.W federal tasatlon has likewise become an Important determl­mat of soneral laualneas activity.) Large plus signs in most items mark federal govern· ment collections in Texas in May of 1948 over those of May ayear ago, and the same is true of the collections for the 11 months of the current fiscal year. Income taxes (payments and withholdings) have amounted so far this fiscal year to the awesome figure of '952 million. Such an amount means the continued swelling of money incomes of individuals and corpora­ tions in Texas, and it is to a considerable extent the prOduct of both the inflationary trend of wages and prices and of taxes kept at near wartime level. The recent tax reductions will show their effect, if any, in the collections in subsequent months. The collection items when looked upon as indexes of business activity and employment indicate a favorable situation in both. In May, collections in the Second District (North Texas) ran ahead of those in the First District (South Texas), whereas the reverse was true in the month of April and for the total collections for the 11 months of tbe current fiscal year. Total collections in Texas for May reached $85,620,. 037, as compared with May 1947, collections of $62,­ 651,198. Thus, in a year's time federal internal revenue collections have increased 36.7% in Texas. PRICES Consumers' Prices (All Income fisurea must be used In connection with a -.ure of chanses In consumers' prices, since the purchaslns power of In· come la more slsnific:ant than the assresate amount In doUare. The lncreaslns coat of llvlns, aa measured by Indexes of consumers' prices, la of vital Importance to all businessmen and consumers.) The index of consumers' prices in Houston edged upward fractionally (0.1 % ) from April to May to 71.5% above the 1935-39 average. Higher apparel prices were the principal factor in the rise, with a 1.2% advance. Housefurnishings also moved up slightly, but food prices, the biggest items in the cost-of-living budget, eased downward 0.5%. The all-items index in May 1948 was 8.8% above a year earlier. Food prices were up 10.7%, apparel 11.2%, housefurnishings 6.7%, and miscellaneous com­modities and services up 7.3%. Only fuel, ice, and elec­tricity prices remained unchanged. The direction and extent of price changes in the com­ing months is by no means clear, and informed opinion varies. Those who predict a continued upward spiral of prices for the remainder of the year, however, have considerable evidence on their side. Government spend­ing in foreign aid, veterans' benefits, public works, soil conservation, and the armed forces will channel addi· tional millions into consumer pocketbooks. Consumer spending is still high, as pay rolls continue to rise, employment increases, and the level of unemployment remaii;is low. The quantity of money and credit outstand­ing is great and further increases are seen in business and industrial loans. On the other side Qf the picture, there is evidence of consumer reluctance or inability to pay even the present prices for some items, especially in the durable goods line. How much longer the demand for new automobiles, for instance, can continue strong in the face of further upward price adjustments is questionable. An extremely important factor to watch in studying the price situation is the pattern of wage increases among industries. FEDERAL INTERNAL REVENUE COLLECTIONS Source: Office of the Collector, Internal Revenue Service, Treasury Department May July 1-Mny 31 Percent Percent District 19•8 19(7 change 1947-48 1946-47 change TEXAS $ 85,620,037 $ 62,651,198 + 36.7 $1,162.992,439 $986,055,838 + 17.9 Income ----------------­ 17,581,738 14,704.246 + 19.6 662,454.880 566.637,251 + 16.9 Employment Withholding -----------­-Other ----­-FIRST DISTRICT ---­--­Income ----·--·-··-· Employment _ -·----------­Withholding -· --·-· ----------­ 8,349,687 46 ,506,878 14,182,739 40,761,699 7,627.944 3,573,946 22.148.822 8,033,378 28,664,79 11.248,776 32.774.504 6,881,849 3,250.052 16,466,528 + 3.9 + 68.8 + 26.1 + 24.8 + 10.8 + 10.0 + 34.5 69,087,846 290,027,873 161,421.840 619,934 ,141 350,476,410 26,909,493 158,373,936 50.867,372 287,794,148 180,757,073 518,775,902 295,836,604 23,360.578 128,016. 77 4 + 16.2 + 22.0 + 16.8 + 20.7 + 18.5 + 15.2 + 23.7 Other -----­SECOND DISTRICT ·---------­Income ----· 7,400,987 44,868,338 9,953,794 6,176,075 29,876,694 7,822,397 + 19.8 + 50.2 + 27.2 84,174,302 543,058,298 311,978,470 66,561,951 472,279,936 27 0,800.647 + 26.5 + 15.0 + 15.2 Employment _ ----·-----­Withholding ----·---· - 4,776.741 23,357,051 4, 783,326 12,198,270 -0.2 + 91.5 32.178,363 181.653,937 27,506,799 109,777,369 + 17.0 + 19.9 Other ---------·------­ 6,781,752 5,072,701 + 33.7 67,247,538 64,195,121 + 4.8 TEXAS BUSINESS REVIEW INDEXES OF CONSUMERS' PRICES IN HOUSTON earlier level. Farm product prices showed the strongest (1936-89 =100) (4.6%) advance for the period, foods were up 1.8%, textiles 0.7%, building materials 0.4%, and hides and Source: Bureau of Labor Statistics, U.S. Department of Labor leather products down 0.6%. Percent change INDEXES OF WHOLESALE PRICES IN THE UNITED STATES May 1948 May 1948 May Apr. May from from (1928 =100) Group 1948 1948 1947 May 1947 Apr. 1948 Source: Bureau of Labor Statistics, U.S. Department of Labor ALL ITEMS ··----------·--171.5 171.4 157.5 + 8.8 + 0.1 ====================== Food _....._ ........_ ....._._,_ 218.1 219.3 197.1 + lo.7 -0.6 Percent change Apparel -..................-.......... 208.9 206.4 187.8 + 11.2 + 1.2 June 5 June5 Rent _____..........._..______ 119.5 1948 1948 Fuel, electricity, and ice.. 94.3 94.3 94.3 0.0 0.0 from from Housefurnishings ..-·--195.4 194.6 183.1 + 6.7 + 0.4 June 5 May 8 June 7 June 7 May8 Group 1948 1948 1947 1947 1948 Miscellaneous 149.2 149.5 139.1 + 7.3 -0.2 ALL COMMODITIES 164.2 161.9 147.9 + 11.0 + 1.4 •Not surveyed. Farm products _ .............. 192.4 184.0 179.5 + 7.2 + 4.6 Foods .................-.............. 178.0 174.8 163.1 + 9.1 +1.8 Wholesale Prices Hides and leather products --· __.._ --· 187.0 188.2 166.6 + 12.2 -0.6 (Chansea In the prlces of commodities are of fundamental Im­Textile p roducts ..___ 149.2 148.2 138.5 + 7.7 + 0.7 portance to businessmen, since the level of prices bas an Important Building materials _ ...... 196.6 195.9 177.5 + 10.8 + 0.4 effect on profits. The index of wholesale prices compiled by the All commodities other than United States Bureau of Labor Statistics Is the most comprehensive farm products ..___ 158.0 156.9 141.0 + 12.1 + 0.7 measure of price changes published In the United States.) All commodities other than farm products and Wholesale prices moved up to 1.4% in the four weeks foods ......----·-·--149.3 148.9 132.2 +0.3 ending June 5, 1948, and stood 11.0% above their year- TEXAS BUSINESS REVIEW Published monthly by the Bureau of Business Research, College of Business Administration, The University of Texas, Austin 12, Texas Material contained in this publication Is not copyrighted and may be reproduced freely. Acknowleda-ment of eource will be appreciated. Subscription $2.00 per year. J. Anderson Fitzgerald -------..-... ·---------Dean STAFF OF THE BUREAU OF BUSINESS RESEARCH Robert W. French John R. Stockton A.H. Chute DirectOt" Statistician Retailing Specialist Elsie Watters Ruth Bruce Polly Chenault Office Manag6f' Editorial Assistam.t Publications A ssistant Mary Louise Kennard Dorothy Easley T . R. Markham Secretary Library Assistant Information Assistant Grody Jordan James Tedford Frances Allen Research Associate Field Representative Statistical Assistant Rachel Woodul Martha Taylor Margaret Hampton 8 LS Reprsaentative Research Assiatant Research Assistant R. K. Cassell Resources Specialist Busineaa Research Council Robert W. French E. Karl McGinnis (ex ofllclo) E.T. Miller J. Anderson Fltza-erald Everett G. Smith (ex officio) H.K. Snell Cooperating Faculty C. A. Wiley Agriculture A. B. Cox Cotton Charles E. Walker Finance Clark E. Myers Manufacturing Curtis Arrington, E. T . Miller Government H. H . Elwell W. H . Watson Labor Auistnnta Forrest Adams, Ralph B. Thompson Prices H. K. Snell Jerry W. Martin Transportation W. A. Nielander Wholesale Trade Laniere Adams, Cecil Bomar, Tommy Burris, Nuel Childs, Bonnie Crossley, Marvin Davis, Peggie Doole, J ean Elvins, Carl Gromatsky, Scranton Harrington, Charles Hinkle, Audrey Jackson, Geraldine J ack­son, .Joseph James, Calvin Jayroe, J ames Jeffrey, Ralph Loy, Martha Mack, Nethery Marrow, Mary Maxwell, Doris Morgan, Dale McGee, Jack Neff, Charles Powers, Paul Rigby, J ohn Rugg, Bruno Schroeder, J ohn Stephenson, Walter Thompson, Florence Thomson, Jack Wagle, Carolyn Webber. TABLE OF CONTENTS Highlights of Texas Business__________________ l Figures for the Month_________..___..____________ 2 The Business Situation in Texas·------·-·----·-:J Trade Retail Trade • 6 Foreign Trade 7 Production Manufacturing 8 Construction 9 Public Utilities 10 Natural Resources ·-·-..---------------10 Agriculture Income ·-------11 Marketings ---------------12 Wholesale Trade Prices . 13 Cotton .....___,______,,___._................._ .....-... --13 Cold Storage ---------------....-·--13 Local Business Conditions ------· ... __ ......... 14 Finance ~:~~ g~bl~ ·======-- ---·-----~~ Life Insurance Sales....___......_________ ____ 18 Business Failures 18 Corporation Charters --------------18 Transportation Rail 19 ~ " Labor Employment 20 Pav Rolls -· 20 H ours and Earnings 21 Man-hours ____.....................---------..-· 28 Unemployment ----· II Placements ---------23 Labor Force ---... 28 Industrial Relations U Government State 'Finance Federal Finance Prices Consumers' Prices II Wholesale Prices M Figures for the Year to Date___ -----··---- ------%1 Barometers of Texas Business.._____ FIGURES-FOR THE YEAR TO DATE January-May Percent 1948 1947 change TRADE Estimated retail sales, total______________ _ 2,094,851,000 1,811,0181,000 + 15,7 Durable goods, total____ 755,497,000 609,777,000 + 23.9 Automotive stores --------------348,396,000 293,759,000 + 18-6 Lumber, building materials, and hardware stores_______________ 322,804,000 237,194,000 + 36.1 Furniture-household appliance stores 67,795,000 63,055,000 7.5 + Jewelry stores 16,502,000 15,769,000 4.6 + Nondurable goods, total ____ 1,339,354,000 Sl,QOl,241,000 + 11.5 Apparel 1 i6,885,000 124,662,000 + 17.9 Country general 30,148,000 29,990,000 0.5 Department stores ______ 156,936,000 139,563,000 + + 12,4 Eating and drinking places _ _________ 125,777,000 127,368,000 -1.2 Filling stations ------------------------------149,650,000 123,463,000 + 21.2 Food --------4-20,132,000 389,518,000 + 7.9 General merchandise 101,930,000 75,137,000 + 35.7 Drug stores ---------· 99,471,000 94,281,000 5.5 OOfil _ 108,425,000 97,259,000 + + 11.5 Ratio of credit sales to net sales in department and apparel stores_____________ _ 60.8 56.5 + 7.6 Ratio of collections to outstandings in department and apparel stores. _____________ 53.7 57.6 -6.8 Postal receipts in reporting cities $ 15,293,816 13,573,877 + 12.7 PRODUCTION Industrial electric power consumption for 10 companies (thousands of kil owatt hours) _ 1,288,222 1,141,035 + 12.9 Man-hours worked in reporting manufacturing establishments_______________ 13,748,001 13,871,700 -0.9 Crude oil runs to stills (thousands of 42-gallon barrels) _________ 246,625 199,442 + 23.7 Cotton consumption (running bales) -------67,772 82,163 -17.5 Cotton !inters consumed (running bales) -----------9,327 7,328 + 27.3 Cottonseed crushed (tons) ----------493,611 202,318 +144.0 Manufacture of dairy products (1,000 lbs. milk equivalent)-----------------------226,228 344,235 -34,3 Lumber production in southern pine mills (weekly per unit aver11.ge in board fc.,i) ___ 20,1,359 215,324 -5.1 Construction contracts awarded ---------------------------------------s 369,757,995 251,285,885 + 47.l Construction contracts awarded for residential building________________ l~'.6,S52,851 93,802,622 + 45_9 Building permits issued in reporting cities_______ --------203,148,275 112,221,259 + 81.0 Number of loans made by savings and loan a;,sociations________________________ e,859 9,356 -5.3 Amount of loans made by savings and loan a~sociations__ ----------------­~ 35,9i8,416 s 34,822,263 + 3.1 Crude petroleum production (daily average in barrels>-------------------9,612,700 8,512,975 + 13.3 AGRICULTURE Farm caah income 397,;, H,OOO 386,205,000 + 2.9 Shipments of livestock (carloads) _______ 40,635 61,922 -34-4 Rail shipments of eggs (shell equivalent) _ 761 1,597 -52.3 Interstate receipts of eggs at Texas stations (shell equivalent) ------------122 32 +281.3 Rail shipments of poultry (carloads)___________ 35 71 -50.7 FINANCE Bank debits in 20 cities (thousands of dollars) --------------------------------­17,175,924 13,909,4.14 + 23.5 Corporation charters issued (number) ----------------------­1,900 869 +118,6 Ordinary life insurance sales 2 1-J, 173,80-+ 239,463,467 + 2.1 Business failures (number) 27 17 + 58.8 TRANSPORTATION Revenue freight loaded in Southwestern District (carloads) _________________________ _______ l ,.'>92,262 1,381,936 + 0.7 Export and coastal cars unloaded at Texas ports---------------------------------73,886 90,810 -18-6 Miacellaneous freight carloadings in Southwestern District_________ ----__ ---------876,619 812,093 7.9 + Air expreaa shipments (number) 129,3cl9 117,713 9.9 + LABOR Total nonagricultural employment (monthly average) ___ __________ _ 1,674,l