' '~ "'EXAS BUSINESS REVIEW in · " MONTHLY SUMMARY OF BUSINESS AND ECONOMIC CONDITIONS IN TEXAS dee. The BUREAU OF BUSINESS RESEARCH ·' ­ COLLEGE OF BUSINESS ADMINISTRATION THE U NIVERSITY OF TEXAS Vol. XXII, No. 11 December 1948 HIGHLIGHTS OF TEXAS BUSINESS NOVEMBER 1948 COMPARED WITH NOVEMBER 1947 Construction contracts_____________________ __ Postal receipts____ ,______________________________ _ Bank debits__________________________ _____ _____ ___ __ Pay rolls____________ __ __ _____________________________ __ Electric power consumption____ ____ _____ _ Crude petroleum production____________ , Employment__ __ _______ __ _________________________ _ Retail sales__________________ _____________ _ _______ _ Cotton consumption____________ ____ _____ _ __ __ Farm cash income___________________________ _ _ Revenue freight loaded__ ___ ___ __ __________ _ NOVEMBER 1948 COMPARED WITH OCTOBER 1948 Electric power consumption_____________ Pay rolls____ _____ __________________________________ __ Employment_______ ________________________________ _ Crude petroleum production_____________ Cotton consumption______________ __ _________ , Bank debits___________ _ .. ____ ----------------------­Retaii sales________________________________ ______ _ Postal receipts_______ ---------------------------­Revenue freight loaded_________________ __ _ Construction contracts_______________________ Farm cash income____________ ______________ _____ PERCENT DECREASE PERCENT INCREASE 40 30 20 10 0 10 20 30 40 !iO PERCENT DECREASE PERCENT INCREASE TWENTY CENTS PER COPY TWO DOLLARS PER YEAR FIGURES FOR .THE MONTH November October Novellher 1948 1948 INDEX OF TEXAS BUSINESS ACTIVITY (1935-39=100)*--------226.9 1917 224.8 20U Index of department and apparel store sales (10) 361.0 342.7 ~.3 Index of miscellaneous freight carloadings in Southwestern District (20) ______ 154.5 162.5 '..12.6 Index of crude oil runs to stills (5) ______ 176.5 178.6 166.6 Index of electric power consumption (15) _ _ ·---------------325.1 317.l 290.6 Index of employment (25) _________________ _____________ 130.1 129.l 123.6 Index of payrolls (25 )___ 279.3 276.8 24.3.9 TRADE Retail sales, totaL______·--------------·------$432,749,000 $438,597,000 $424,238,000Durable goods stores _ $148,799,000 $153,141,000 $140,229,000 Nondurable goods stores______ ___ $283,950,000 $285,456,000 $284,009,000 Ratio of credit sales to net sales in department and apparel stores_ 62.0 61.5 58.7 Ratio of collections to outstandings in department and apparel stores___________ 53.5 50.8 56.4 Advertising lineage in 30 newspapers_ 29,383,065 31,232,642 28,756,008Postal receipts in 56 cities___ ________ $ 3,288,292 $ 3,378,182 $ 2,763,673 PRODUCTION Industrial electric power consumption for 10 companies (thousands of kilowatt hours)_ 280,077 290,648 263,399 Man-hours worked in 384 manufacturing establishments_____ 3,118,774 3,093,545 2,990,996 Crude oil runs to stills (42-gallon barrels) __ 49,267,807 51,362,175 46,528,478 Gasoline stocks at refineries (thousands of barrels) 18,613 18,948 17,501 Fuel oil stocks at refineries (thousands of barrels) _ _____ ___ 33,108 31,626 24,451 Cotton consumption (running bales) ___________________ 11,967 11,942 11,944 Cotton !inters consumed (running bales) _____ 2,349 2,487 2,025 Cottonseed crushed (tons) ---·-----------------------------------------­171,362 170,869 158,970 Manufacture of dairy products (thousand lbs. milk equivalent) __ 39,846 43,969 39,444 Lumber production in southern pine mills (weekly per unit average in board feet) __ 193,426 210,958 197,269 Construction contracts awarded------------------------·-----------$ 93,993,636 $107,033,214 s62,647,927 Construction contracts awa1·ded for residential building__________________ $ 46,037,380 $ 54,029,712 $ 27,272,864 Building permits issued in 53 cities_________________________________ $ 29,139,981 s35,718,923 $ 30,829,734 Number of loans made by savings and loan associations__ 1,603 1,732 1,633 Amount of loans made by savings and loan associations__________ $ 6,196,396 $ 6,704,052 s 6,090,068 Telephones in service in 40 cities (end of month) _________ 1,033,620 1,023,996 898,079 Crude petroleum production (daily average in barrels)_ 2,523,850 2,507,000 2,338,400 AGRICULTURE Farm cash income________________ $193,126,000 $260,660,000 $205,896,000 Shipments of livestock (carloads)__ ___ 7,851 10,333 9,856 Rail shipments of fruits and vegetables (carloads) 3,562 734 5,485 Rail shipments of poultry (carloads) _ ________ _ ,___________________ 4 205 136 Rail shipments of eggs (shell equivalent in carloads) 63 72 49 Interstate receipts of eggs at Texas stations (shell equivalent in carloads) _____ 39 57 73 FINANCE Loans, reporting member banks in Dallas District (thousands) _____ $ 1,110,000 $ 1,096,000 $ 1,005,000 Loans and investments, reporting member banks in Dallas Di~trict (thousands) ____ $ 2,318,000 $ 2,295,000 $ 2,294,000 Demand deposits adjusted, reporting member banks in Dallas District (thousands) __ $ 1,972,000 $ 1,911,000 s 1,862,000 Bank debits in 20 cities (thousands) $ 3,707,364 $ 3,742,506 $ 3,233,857 Corporation charters issued (number) ________________ 228 254 288 Ordinary life insurance sales (thousands) _________ _ $ 59,193 $ 57,031 s 57,164 Business failures__________________ _ ______ 3 9 7 Sales of United States Savings Bonds__________ ______________ $ 11,591,321 $ 12,526,633 s13,588,221 TRANSPORTATION Revenue freight loaded in Southwestern District (carloads) _ _____________ 286,770 322,707 313,299 Export and coastal cars unloaded at Texas ports (carloads) ________ 17,808 16,873 16,288 191,926 Miscellaneous freight carloadings in Southwestern District (carloads) 183,689 204,443 Air express shipments (number) ______________ 26,387 29,038 29,664 LABOR Total nonagricultural employment___________ ________ __________ ________ 1,782,500 1,767,500 1,689,500 Manufacturing employment_________________ 357,400 352,800 347,600 1,341,900 Nonmanufacturing employment____ 1,425,100 1,414,700 Nonagricultural civilian labor force in 17 labor market areas_ _ _ _ 1,375,280 1,368,420 1,314,504 53,853 Unemployment in 17 labor market areas________________ 43,730 42,070 29,017 Placements in employment in 17 labor market areas____ 27,400 32,833 GOVERNMENT $ 44,743,885 Revenue receipts of State Comptroller___ ______ $ 51,255,362 $ 45,075,769 $ 69,478,168 Federal internal revenue collections'-------------------­s 78,189,697 $ 65,274,120 PRICES 165.8 174.7 Index of consumers' prices in Houston 0935--39 =100) -------------­173.9 210.2 Index of food prices in Houston (1935-39 =100) ----------217.6 220.8 *The composite index is made up of the indexes listed. All component indexes except employment and payrolls are adjusted for ieaaonal variation, and all indexes are based on the average month of the years 1985-39. Numbers In parentl'lesis following the component Index• indicate the weight of each index in the composite. TEXAS BUSINESS REVIEW • The Business Situation In Texas Business activity in Texas showed some small gains in November in comparison with October, to stop a decline that has been underway for the past two months. The composite index of business activity compiled by the Bureau of Business Research increased 0.9% in November, after allowance for normal seasonal variation. The index stood at 226.9 in November, down 2.8;1c-from the postwar high of 233.4 reached in August 1948. When the index declined in October, after haYing previously dropped in September, it appeared that a major turning point might have been reached. However, the slight upward movement in November seems to indicate that no appreciable falJing-off of business activity has yet .got under way. Business activity in the nation as a whole has been suggesting that the peak of the postwar boom mav have been passed. Business volume is still at high levels. but considerable uneasiness is present in manv lines. How­ever, the demand for durable goods, both capital and consumer goods, remains high and deliverv of many items still takes time. As long as the demand for durable goods remains high, the volume of total business activity cannot fall far. This fact means that the level of Texas business may be expected to remain above normal. In drawing conclusions on the future course of Texas business it is important to consider the volume of capital expansion that is contemplated by business concerns, since this phase of business is such a dynamic part of the total business picture. Government expenditures for munitions and the demand for goods in foreign countries are also important dynamic elements of the business situation that must be watched for changes that will have an immediate effect on Texas business. It seems likelv that government expenditures are more likely to increas~ in the near future than to decrease, but the continued uneasiness of business concerns about the future of business raises some doubt as to the continued high level of capital formation. Four of the six components of the composite index of business activity increased substantially over October, and two increased le!'s than 1%. The remaining two components declined rather dt"cidedh-. The index of department and apparel store sales registered the greatest increase (5.3%) , to bring the index to 361.0. This was still 11.8% below the high point of the index reached in .Tuly 1948. Electric power consumption increased 2.5%, pa'Yrolls 0.9'/c, and employment 0.8%. The largest decre:.ise was in miscellaneous frei~ht carloadings, down 4.9%, while crude runs to stills was down 1.2%. The composite index in November stood at onlv 8.9% above the level of the index in November 1947. but all the components were still above a year ago. Pavrolls were up 14.5 %, electric power consumption 11.9%, department and apparel store sales 6.1 %, crude oil runs to stills 5.9%, emplovment 5.3%, and miscellaneous freight carloadings l.2%. The Bureau's index of bank debits in Texas cities turned up in November, after declining for three successive months. The rise carried the index from 440.6 in October to 466.4 in November, a rise of 5.9%, which was enough to establish a new postwar high for the index. Since bank debits represent money spent in the form of checks written, it is a comprehensive measure of business trans­actions. When the volume of checks rises, especially when there is not an accompanying rise in the price level, it means without much question that the volume of busi· ness activity has increased. The substantial rise for November carried the index to a point 14.6% above November 1947. The index of postal receipts corroborates the rise in bank debits with a gain of 6.0% over October to bring this index to 20.6% above November 1947. Since post office receipts, in the absence of any change in postal rates, may be expected to vary with the changing level of business activity, this index is a reasonably accurate reflection of the general level of business activity. Total retail trade in Texas, after adjustment for seasonal variation, increased 1.0% over October, with the total volume of retail sales only 2.0% above Novem­ber 1947. The sales of goods to consumers represents INDEX OF TEXAS BUSINESS ACTIVITY ADJUSTED FOR SEASONAL. VARIATION PERCENT TEXAS BUSINESS REVIEW the weakest part of the present business situation in Texas. Merchants in Texas and elsewhere are reporting more and more resistance of consumers to current prices. Sometimes this resistance takes the form of insistence on higher quality, but at other times it means simply that certain kinds of goods are not moving as fast as in the past. The volume of Christmas business is expected to give a clearer picture of the state' of consumer demand, but manv merchants are worried about the trend. The sales of 'durable goods declined 2.4% after adjustment for seasonal variation, while the sales of nondurable goods after allowance for the seasonal factor rose 3.0%. In comparison with November a year ago, sales of durable goods stores were up 6.1 %, but the sales of non­ durable goods stores in November were at the same level as a year earlier. An increasing portion of goods is being sold on credit and to such an extent that in some cities credit men are worried about the situation and have issued statements that warned the public that goods bought on credit would have to be paid for. The ratio of credit sales to net sales in department and apparel stores in Texas was 62.0% in November, an increase of 5.6% from a year ago. At the same time collections in relation to outstanding accounts were 5.1 % below a year earlier. Manufacturing activity in Texas, as measured by the Bureau's indexes, showed small improvement in Novem­ber over October. The most comprehensive barometer of industrial activity published by the Bureau is the index of electric power consumption by industrial con­cerns. After adiustment for seasonal variation, this index rose 2.2% in November and was 6.3% higher than in November 1947. The Bureau's sample of 384 manu­facturing establishments reported man-hours worked during November up 0.8% from October, 4.3% above November 1947. Manufacturing employment in Texas rose 1.3% in November to lift the number employed in manufacturing establishments 2.8% above November 1947. In summary all three general measures of state manufacturing activity rose in November. The only important exception to this trend was found in the refining industry; runs of crude oil to stills declined in November more than the normal seasonal pattern, and after adjustment for seasonal variation were 1.2% below October. The building industry showed a gain in November, with building permits issued valued at 5.8% more than in October. Because there is normally a seasonal decline in November, the Bureau index ad]usted for seasonal variation rose 33.0%. Building permits represent build­ing started during a month, and have always showed a wide fluctuation over short periods. For this reason the cumulative building permits for the year to date may be more significant than the data for one month. During the first 11 months of 1948 the value of building permits was 31.3% greater than in the same period of 1947. Fann cash income declined 7.6% from October after adjustment for seasonal variation, and for the first 11 months of 1948 farm income was 9.3 % below the same period of 1947. TRADE Retail Trade (The movement of •oocla Into the banda of conaumen ta ant tf the fundamental aert.. of atatlatlcal data on bualneaa actl•lty, tlaet for buslneu to be sound the volume of retail trade mutt be roo4. Durin• a period of lnftatlon an Increase In oalee ,_ulh from a rlM In prices aa well aa from an lncreaae in the amount of bualaett. A mt're detailed analyala of retail taleo trenda It made In a Supplto ment to the Review on Texaa Retail Trade. The ftuctuatloaa i. retail credit ratlot are Important condltlonln• factors of the "'­of trade. Nawapaper advertltln• llnawe and pootal recelptt are aecondary trade Indicators.) Estimated retail sales of $432,749,000 in November helped to show a further slowing in the rate of advance with onlv a nominal 2% increase above November 1947'. against an 11-months' average increase of 12.7%. I~ November the familiar pattern returned after October's break. Sales of durable goods stood 6.1 % over1947, with a 1948 average· of 20.0%, while nondurables showed no gain as compared to a 9.0% average for the year. For the year to date, dollar sales increases over 1947 were larger than increases of 1947 over 1946 for nondurable goods but were smaller for durables and for total retail sales. ~TIMATES OF TOTAL RETAIL SALES (In thousands of dollan) Percent change T ype of store Nov. 1948 Nov. 1948 J a n.-Nov. from 1948 N ov. 1947 Nov. 1948 J an.-Nov. 1948 from from Oct. 1948 Jan.-Nov. 1947 TOTAL ·---·-·--­432,749 4,630,178 + 2.0 - 1.8 +11.6 Durable goods stores -·---­148,799 1,660,064 + 6.1 - 2.8 + 17.0 N endura ble goods stor es -----283,950 2,970 ,114 0.0 - 0.5 + 8.8 The index of total retail sales, adjusted for seasonal variation and based on the prewar years 1935-39, rose to 320.l in November after falling to 316.8 in October from 326.8 in September and 335.2 in April, the two hi17-hest postwar points. Average indexes had been: 1948 to date, 319.9; 1947, 289.4; 1946, 261.8; 1945, 199.7. The durable goods index slipped further in November to 356.7 from 365.3 in October and 388.5 in September, against a 1948 average of 362.0. For non­durables the index recovered to 299.7 from 291.l in October and 295.0 in September and a 1948 average of 297.0. Deflated for price changes, the adjusted total retail sales index rose slightly to 163.1, as compared with a 1948 average of 165.7. Among individual lines, the jewelers' index leaped up to 466.2, a new postwar high. During the past three months the indexes have been trending downward for automotive stores, eating and drinking places, and building materials dealers; but indexes have shown little change for drug, food, apparel, general merchandise, and country general stores and filling stations. By kinds of business, the larger dollar sales gains over November 1947 were made by farm implement dealers (40.8%), motor vehicle dealers (14.2%), and combi­nation food stores (10.6% ). Among many lines showing decreases, the largest were by furniture stores (13.7%)' men's and bovs' clothing stores (10.7% )' and hardware stores (10.5%). Best advances for 1948 to date were TEXAS BUSINESS REVIEW J~s res 39 -u 33.6 0.5 All GI.be stares 110 0.9 + 2.6 .6.9 T llpOded by farm implement dealers (21.6%), building .-rials dealers (19.4%), motor vehicle dealers (19.2%), filling stations (15.0%), combination food llDres (14..1% ) , and department stores ( 11.6%). Hard· WR and country general stores, jewelers, florists, drug llDns, apparel shops, and restaurants showed gains mder3%. Dillerences by size of citres in percentages of sales im:nme over 19ol7 have narrowed in recent months and ~lmt any clearly defined pattern. In November, ciliea of 50,000-100,000 population averaged a 3.5% dacam: hot showed the largest increase (11.0%) for 1948 through November. Towns under 2,500 made the limt oerage November increase (3.2%) hut the smallest (8.6%) for 1948. RETAIL SAL.ES TREN"DS BY CITY.SIZE G.R OUPS !loa:rce: 8'1?"91 o! B i,,_. Re.earc.b i:D COO;>eT& ·on with the Bur• a rA tl:te Cenl • U. . D«"l'artm""t of GommeTtt 1\e rfllio of credit sales to net sales in 78 department -.I apparel stores averaged 62.0% in November against 611% in September 1948, 58.7% a year ago, and 55.4% in November 1946. Dallas (71.3%) and Beaumont (6l4%) had the highest ratios. The average coll.ection rlllio for November stood at 53.5% in 1948, 56.4% in 1917, and (i().2% in 1946. In November, the best col­lection ratios were reported from Austin ( 64..7%), Waco (58.1%), and Beaumont (57.1%). ~tlf16fising lin,eage in 30 Texas newspapers averaged 5.9% below October 1948 and only 2.2% above Novem­lier 1~7, which was the smallest year·to·year increase nported for any month this year. The largest had been 25.5% in February, and the 11-months' average was CRE.DIT RATIOS IN DEPARTM.ENT AND APP.Alt&L STOJlU (in J;:>eToent) Ratio of Ratio of credit .a1.. eoDectiona to No.mber to net aaJ.,.• outatandin_ni of reparting Nov. Classification stores 194 ALL STORES 7 62.0 58. 7 53.5 56.• BY CITIES : Austin --­-----7 53.7 H .3 6U 65.7 Beaumont 8 64..4 61.7 57.l 58.9 Bryan 8 43.3 4.2. 53.5 54 .7 Clebnrne 3 38. 36.6 49.9 53.l Corpus Christi 56.l 55. l 52.7 64.6 Dallaa 14 71.3 69.5 53.7 56.5 El Paso 3 54.6 49.5 45.l 50.5 Fort Worth 4 62.3 55.7 56.6 58.0 Houston 7 61.9 57.1 49.9 54.2 Lubbock 3 4.5.. 2 35.6 53.0 62.5 an Antonio 5 56.5 53.7 53.l 58.l Waco -------­ 5 53.l 54..9 5 .1 58.4 Other - · 17 50.l 47.9 56.0 5 .8 BY TYPE OF STORE: Departm~t stores (annual sales over $500,000) --­ 19 65.5 62.7 52.5 55.0 Department stores (annual sales under $500,000) - 10 47.6 46.5 53.7 56.2 Dry goods-apparel stores _ 7 44.4 36. 46.l 53.9 Women' specialty shops - 23 53.8 50. 55.9 60.3 Men's clothing tores __ 19 56.4 50.7 59.2 62.6 BY VOLUME OF NET SALES: (1947) o,.-er $2,500,000 24 64.9 61. 53.4 56.l $1 ,000,000-$2,500,000 -­ 15 51.4 47.9 52.2 5 .0 $500,00 1,000,000 ---17 46.5 43.0 5 .8 61.0 Les than $500,000 ---22 47.l 4.2.5 53.l 54.9 •Credit aal• divided by net salea. Collectiono durin&" the month divided by the total account. unpaid on the first of the month. 10.7%. For 1948, the largest increases reported separ· ately were in El Paso (25.1 % ) , San Antonio (22.9%), and Houston (19.l% ) . Sales of gasoline subject to tax totaled 187,995,121 gallons in October, 3.4% over October 1947 hut 0.5% below September 1948. For the 10 months of 1948, tax· able sales were 2.9% below 1947. Sales to the federal government bettered September by 19.9% but fell short of October 1917 by 17.2%. For the ten months, these sales surpassed 1947 by 66.8%. The irulex of ga&oliM saks rose slightly to 193.9. Visitors at State parks in November numbered 91,400 in 29,748 cars, or 1.2% more visitors and 5.3% more cars than a year earlier. There were 14.7% more out-of· State cars. For 1948 through November, visitors were 3.2% more numerous than in 1947, cars 5.6% more, and out-of-State cars 3.5% up. An informal survey made in mid-December among retailers in representative Texas cities is available from the Bureau of Business Research on request. The survey shows: many merchants are pleased with 1948 business, despite Easter and November; some mourn lost volume or profits. Shortages are fewer; buying is closer. Con­sumer resistance is important. Need for training sales people is widely recognized. Planning and intensive sales promotion are highly essential. It will he nec.essary, hut difficult in some cases, to reduce and balance inven· tories. Mounting expenses and inefficiency are worries. TEXAS BUSINESS REVIEW Weak, marginal firms face failure. Business in 1949 will depend upon economic conditions generally, weather locally, and Washington's decisions on taxes, controls, tariffs, and the military and foreign aid programs. Postal, receipts of 56 Texas cities in November averaged 19.0% over 1947 although 2.7% below October 1948. On the year-to-year comparison, three small cities showed the ?nly decreases. For the 11-months of 1948, postal receipts topped 1947 by an average of 14.1 %, with increases ranging from 1 to 32%. POSTAL RECEIPTS P ercent change City Nov. 1948 Oct. i948 Nov. 1947 Nov. 1948 Nov. 1948 from from Nov. 1947 Oct. 1948 TOTAL __________$3,288,292 $3,378,182 $2,763,673 + 19.0 -2.7 Abilene ----------·-· 35,372 40,793 30,005 + 17.9 - 13.3 Amarillo ---------· Austin --­-----­------­­Beaumont ----------­ 68,730 137,019 50,902 73,878 132,760 65,467 58,451 105,916 47,271 + 17.6 + 29.4 + 7.7 -7.0 + 3.2 -22.3 Big Spring -------· Borger -------­Brcwnsvillle ---·-· 10,826 9,153 14,470 10,902 9,394 15,744 8,028 7,278 11,660 + 34.9 + 16.2 + 24.1 -- 0.7 2.6 8.1 Brownwood ........ ­Bryan --------­-­Childress -----­ 11,331 9,104 3,791 12,749 8,268 4,625 9,812 8,518 3,025 + 15.5 + 6.9 + 25.3 -11.1 + 10.1 -18.0 Cleburne --------· 6,123 6,366 4,821 + 27.0 3.8 Corpus Christi -Dallas ---------­De! Rio -----------· Denison -------------­Edi_nburg --·------· El Paso --------------­Fort Worth ---------­Gainesville .......... Galveston ----------­Greenville -··---------­Harlingen --------­­Houston --------------­Jacksonville -------­Kenedy ----------------· Kerrville ------------­L amesa -----------­Laredo ................. . Lockhart ............. . Longview --­----­---­Lubbock ----------­-­Lufkin ....... -------· McAllen -------------­Marshall --------­Midland --­---------· Nacogdoches ...... .. New Braunfels .... Orange -----------­Palestine ............. . 68,892 871,866 5,356 10,931 7,135 132,973 352,1S2 5,813 52,578 11,531 17,118 582,257 6,103 l,843 5,575 5,428 16,193 2,157 15,380 49,656 9,143 13,800 14,568 17,848 6,880 5,923 9,503 8,466 71,540 894,466 6,260 10,533 6,906 118,685 369,484 6,612 53,347 12,333 17,561 577,285 7,283 2,347 5,958 6,238 17,138 2,638 20,345 59,571 9,533 13,588 12,508 18,542 7,321 6,883 10,251 7,978 59,496 758,856 6,275 9,273 6,060 87,171 341,633 5,484 48,542 8,071 12,953 461,600 5,294 1,706 4,597 5,252 13,960 2,286 14,665 43,740 7,724 13,141 9,678 12,638 7,034 4,532 8,643 6,985 + 15.8 + 15.7 -14.6 + 17.9 + 17.7 + 52.5 + 3.1 + 6.0 + 8.3 + 42.9 + 32.2 + 26.1 + 15.3 + 8.0 + 21.3 + 3.4 + 16.0 -5.7 + 4.9 + 13.5 + 18.4_ + 5.0 + 50.5 + 41.2 -2.2 + 30.7 + 10.0 + 21.2 -3.7 -2.5 -14.5 + 3.8 + 3.3 + 12.0 -4.7 -12.l 1.5 6.5 2.5 + 0.9 -16.2 -21.5 -6.4 -13.0 -5.5 -18.2 -24.4 -16.7 -4.1 + 1.6 + 16.5 -3.8 -6.0 -14.0 7.3 + 6.1 Paris ----­---­----­­Flr.i inview ---------­Port Arthur ------· San Angelo --------­San Antonio ----·-· Seguin ------------­Sherman ............ .. 11,229 9,191 26,557 28,539 314,219 5,632 15,502 11,320 9,455 27,524 30,847 319,595 5,709 16,492 8,914 7,918 24,585 24,575 255,975 4,811 12,329 + 26.0 + 16.1 + 8.0 + 16.1 + 22.8 + 17.1 + 25.7 0.8 2.8 3.5 7.5 1.7 1.3 6.0 Snyder --------------· Sweetwater ------· Temple ---------· Texas City --­---­Tyler -------­Vernon -------·­Victoria ----------­Waco --------­Wichita Falls __ 2,769 7,202 16,058 8,781 40,909 6,211 10,470 70,898 50,346 2,826 11,376 15,854 9,296 36,461 8,537 11,295 75,306 52,209 1,857 5,739 12,022 7,995 30,003 5,271 8,274 59,412 36,319 + 49.1 + 25.5 ' + 33.6 + 9.8 + 36.3 + 16.1 + 26.5 + 19.3 + 38.6 2.0 -36.7 + 1.3 -5.6 + 12.2 -28.3 7.3 5.9 3.6 Wholeaale Trade For the first time this year, Texas wholesale trade in Octobe~ showed a decline in sales over a corresponding month m 1947. The "all other" group showed the le.rgest slump (19%), closely followed by the electrical group (12%). Groceries (9%), hardware (1 % ) , and tobacco prod~cts (1 %). were also in the declining group. ~achmery, e~mpment, and supplies (except electrical) mcreased their sales by 13% along with the automotive group (10%) and drugs and sundries (1 % ) . Average sales of all groups were down 7%. Over-all sales in October decreased 10% from those rep~rted in September with only two groups, machinery, eqmpment, ~nd supplies (except electrical), (16%) and the automotive group (12%) showing increases. De­creases of from 3% in drugs and srmdries to 17% in the ~lectrical groul? were reported for all other groups. With the. exception of automotive supplies (--3%) ~nd groc~nes (-:-1 ~), all wholesale lines reported increased inventories m October 1948, as compared with those of October a year ago. The largest single increue was credited to the electrical group (34%), while other groups had gains of from 7% (drugs and sundries) to 12% (hardware). Month·to-month inventories continued to show little change. Increases in October over September of 6% in the electrical group, 2% in groceries, and 1 % in tobacco products were balanced by declines of 8% in the automo· tive group and 3% in both machinery, equipment, and supplies (except electrical), and the hardware groups. Wholesalers over the nation m October reported a decline in sales of 5% from last year, only slightly below the Texas average. These same reports, however, showed only a 4% decrease from September as compared with the 10% drop in Texas. In view of the critical price situation businessmen in Texas and the nation will do well to follow closelv the shifts rn wholesalers' sales and inventories during the next few months. PERCENTAGE CHANGES IN WHOLESALERS' SALES AND INVENTORIES Source: Bureau of the Cenaua, U.S. Department of Commerce Inventories Sales Oct. 1948 Oct. 1948 Oct. 1948 Oct. 1948 from from from from Oct. 1947 Sept. 1948 Oct. 1947 Sept. 1948 Business TOTAL -----------7.0 -10.0 +11.0 ==================== Automotive supplies ------+10.0 + 12.0 -3.0 -8.0 + 6.0 -17.0 +su -4.0 +12.0 E'lectrical equipment ------12.0 -s.o H ardware--1.0 Machinery, equipment and supplies (except electrical) + 13.0 +16.o + 8.0 -8.0 Di-ugs_ and sundries* -----+ 1.0 -3.0 + 7.0 0.0 -13.0 -1.0 +2.0 Groceries ---------9.0 -10.0 +lo.o +1.0 Tobacco products -------1.0 o.o -14.0 +11.0 All other ----------19.0 •Excludes liquor departments. TEXAS BUSINESS REVIEW Foreign Trade (T-fiprea for export ahlpmenta from the prlndpa) porta of 61 State provide an accurate phyalcal meaaure of the current ..... of foreip export trade. Value fiwurea for oxporta -d Im­..-, laowever, represent a more common measurement of forelp .... tranaactlons, but they aro aubject to adjua-•nt f0r price ......) The anticipated rewrsal of the recent downward trend in exports was realized in October, when total exports rose from $926.l million in September 1948 (the low point in mam· months) to $1.020.8 million. At the same time ~eneral imports were also increasing from $558.1 million to $597.2 million. Since. howeve~. the absolute increase in exports was l!"reater than that in imports, the foreign trade gap (the excess of exports over imports) rose to $423.6 million from $368.0 million in September. However, the !?ap is still siimificantlv below the monthly averae;e of the fin°t six months of 1948 of $511.7 millio~. While it is reasonable to expect that exports will be well maintained durin!l the rest of 1948 and in the early months of 1949. over the longer run exports can be expected to show a downward \rend. Evidence of this likelv downward movement is the recent report that Western countries participatinl!" in the European Recovery ~amhave found it necessarv to cut back their import oronams, particularlv with respect to purchases in the United States. While non-availabilitv of some goods, mch as steel, has been a factor in . this cutback, the failure of European exports to achieve tara:et figures, thus providing less foreign exchange than planned, has been the principal factor. The two major factors which will determine the level of United States exports in coming months will be the level of United States imports and the amount of foreign assistance provided bv the United States government. This is particularlv true since most foreiirn countries hue drawn down their monetarv reserves to very low levels. Wbile the foreign trade ~ap will probabl~ con­tinue for several vears at least. it can not much exceed the amount of aid provided by the United States to foreirn countries. Since the amount of foreign assistance provided by the United States is expected to decline over the next few Years, the present level of exports can not be maint;iined unless United States imports rise to a point well above the present level. The rurtailment of imports bv the ERP countries i~ expected to be most sharp in the foll owin!! commodities: tobacco. cotton. machinerv. lumber, chemicals. fruit, ~al, and steel. There may, however, be some offsetting mcreases, particularlv in i:rrain and petroleum products. An examination of trade figures for October 1948 on a commodity basis reveals that exports of textile fibers and manufactures. which have been at unusuallv low levels. increased from $87.5 million in September to Sll4.2 million in October. Within this group, raw cottton exports increased from $30.8 million to $44.1 ~ll!on. Other commoditv i:rroups in which exports rose SJgn1ficantlv were machinerv and vehicles, metals and manufactures, and vegetable foods, including grains. Imports of metals rose from $71.9 million in Septem· her to $87.2 million in October. the hie:hest value for any month of 1947 or 1948. Imports ofvegetable foocl Products also rose from the unusually low figure of $116.5 million in September to $137.8 million in October. This increase was due primarily to laqi:er coffee and cocoa bean imports. Importi:; of inedible veiretable pro· ducts also rose siirnificantlv from $52.:3 to $62.5 million . In connection with the . increased imports of metals, it is of interest to note that imports of metals from the Soviet Union have been well maintained and have even risen in recent months. in spite of the present United States policv of restrictin~ exports to the Soviet Union. These metals include maganese and chrome, which are of considerable stratej!ic importance. Russia is one of the few countries in the world, and the only major Power. which is ~elline: more to the United St~tes than it io. buving here. . The Eronomic Cooperation Administration completed in f'a,.Jv December 1948 its allotments of available funcls to the ERP countries. These allotments include both lo:ms and grants and are expected to cover export orders under the proj!ram until April 1949, although there will of course be a considerable volume of incompleted exports to carrv over into the months followin~. The ECA is expected to seek about $1.2 billion from the Coni!"ress for additional allocations during the fiscal vear 1949. The ECA has also nearly completed the issmmce of grant authorizations covering specific trans­actions from allotted funds. These authorizations now total nearly $4 billion (including those for China). Authorizations under loan contracts are being issued more slowly. The ECA has announced that the ERP countries are planning to attract 1,675,000 United States businessmen and tourists during the four years of the program. The achievement of their target would be expected to provide about $2.5 billion in dollar exchange. In addition, travelers from other countries are expected to spend about $540 million in Europe. WATER-BORNE EXPORTS OF DOMESTIC AND FOREIGN MERCHANDISE (In thousands of dollan) Source: Bureau of the Census, U.S. Department o! Commerce Percent chanrre Customs district Aug. 1948 July 1948 Monthly Aug. 1948 Aug. 1948 average from from 1947 1947 avg. July 1948 TOTAL -----­82,600 81,200 84,400 2.1 + 1.7 Sabine --·-----· 13,300 14,800 14,400 7.6 - 10.1 G:Jveston -----·-·-· 66,400 66,300 69,300 4.2 + 0.2 Lo.redo ·­ 2,900 100 700 + su.s +2800.0 WATER-BORNE IMPORTS OF MERCHANDISE (In thousands o! dollan) Source : Bnrean of the Census, U.S. Department o! Commerce Percent change Monthly Aug. 1948 Aug. 1948 Custom• district Aug. 1948 July 1948 average 1947 from from 1947 avg. J uly 1948 TOTAL 12,000 13,000 1,720 + 597.7 - 7.7 Sabine ----­- 700 1,100 200 +260.0 -36.4 Galveston ----­10,400 10,700 720 +1344.4 - 2.8 Laredo 900 1,200 800 + 12.5 -25.0 PRODUCTION Manufacturing (TM volunH ef •-ufacturtnr activity la &n7' lnduetrlal -'19 a M••ltlv• ,....•re of the chanr•• la ltualn•H activity. The Yel­uae of durable roods maaufactured tends to 8uctuato more Ylo­lentl.,, tlaan the volume of n0<>durable rood• such a• foods, and may eerve to Indicate chaqeo In the bualneH eltuatlOll at aa ..,.1, date. Slace ....,,, maaufacturlnr lnduatrioo vary rerularly wtth the ....°"•• thle factor must be taken Into conald....tton ID baterpreljq tbe cluutr" fr-month to month.) Crude runs to stills were substantially greater during November than for the corresponding month 0£ 1947. The heavy demand for petroleum, locally and through­out the world, has stimulated production such that the November crude runs to stills were 5.9% above those £or November 1947. The index of crude runs to stills remains high, indicating that the level of production is about 1.75 times the average prewar monthly level. The slight drop in crude runs to stills of 4.1 % from October to November is principally a seasonal decline. In considering the petroleum shortage it is interesting to note that all types of re.finery stocks were greater in November than at the same time last year, a fact which seems to indicate that supplies are less critical this winter. Generally speaking, production in Texas declined in November from the October level because of normal seasonal decline. Compared to the same month of last year, however, production increased noticeably. REFINERY STOCKS• (In thousands of barrels) Source: The Oil and Gu J ou......Z Percent change Section and item Nov. 1948 Oct. 1948 Nov. 1947 Nov. 1948 Nov. 1948 f rom f rom N ov. 1947 Oct. 1948 TEXAS Gasoline -----------­----­------·--18,613 18,948 17,501 + 6.4 - 1.8 Distillate ------------------------­16,109 15,307 11,383 +41.5 + 5.2 R.esidual --­---­-----------------12,183 11,675 8,821 +38.1 + 4.4 KP.rosene ------------------­ 4,816 4,644 4,247 +13.4 + 3.7 TEXAS GULF COAST Gasoline ---.. ·------·---·--·--15 ,227 15,744 14,587 + 4.4 - 3.3 Distillate Residual ·-.. ·-·---·-·-.. ·---­14,850 _..___________..____ 10,850 14,063 10,431 10,837 8,081 +s1.o +au + + 5.6 4.0 Kctosene -------------­----------­ 4,100 3,895 3,529 + 16.2 + 5.3 n:LAND T EXAS Gnsoline ----------------------­ 3,386 3,204 2,914 +16.2 + 5.7 Dlstillate ------------­ 1,259 1,244 546 + lso.6 + 1.2 Residual ---­----------­---­ 1,383 1,2·14 740 +80.1 + 7.2 Kerosene ------------------­ 716 749 718 - 0.3 - 4.4 *Fii;rures shown for week endinir nearest last day of month. The grinding of wheat dropped 8.2% from October of 1947 and 12.7% from September of 1948. WHEAT GRINDINGS AND FLOUR PRODUCTION Source : Bureau of the Census, U .S. Department of Commerce Percent chanire Oct. 1948 Oct. 1948 Item Unit Oct. 1948 Sept. Oct. from from 1948 1947 Oct. 1947 Sept. 1948 Wneat irround ·-·-----1,000 bu. 3,501 4,010 3,814 -8.2 -12.7 Wheat flour --------1,000 sks. 1,536 1,724 1,667 -7.9 -10.9 Cement production during October remained almost unchanged compared both to the preceding month of September and to October of 1947. The level of pro­duction is comparatively high-2.19 times the monthly prewar average. CEMENT PRODUCTION (In thousanda of barrel.I) Source: Bureau of Mines, U. S. Department of Interior Percent cha11111 Oct. 1948 Oct. 1948 Item Oct. 1948 Sept. 1948 Oct. 1947 from from Oct. 1947 Sept. 1948 Production .......________l ,178 1,196 1,155 + 2.0 -1.5 Shipments ___ .. _______l,221 1,194 1,181 +3.4 + 2.S Stocks -----·-----..·­ 344 887 245 +40.4 -11.! Dairy production declined from October to November by 9.4%, hut this drop may be attributed to a normal seasonal fluctuation. The index of dairy production, which is adjusted for seasonal variation, rose 14.2% from October to Novem· her. It showed very little change from November of 1947 to November of 1948. MANUFACTURE. OF DAIRY PRODUCTS Percent change Products Unit N ov. 1948 Oct. 1948 Nov. 1948 Nov. 19'8 Nov. from from 1947 Nov. 1947 Oct. 1948 TOTAL MILK EQUIVALENT* 1,000 lbs. 89,846 48,969 39,444 + 1.0 - 9.4 Creamery butter __ 1,000 lbs. 967 936 878 +10.1 + 8.S Ice creamt --­-1,000 i;rals. 878 1,155 889 - 1.8 -2U American cheese -1,000 lbs. 295 331 428 - 31.l -10.9 All others 1,000 lbs. 2,243 2,846 1,731 +29.6 -21.Z •Milk equivalent of dairy prc>ducts was calculated from production data. tlncludes sherbets and Ices. Cotton consumption in Texas showed very little ch~nge during November. The quantity of cottonseed received at mills was greater than in November of 1947, but less COTTON MANUFACTURING Source: Bureau of the Census, U.S. Department of Commerce. Percent chanre Nov. 1948 Nov. 1948 Nov. Oct. Nov. from from Item 1948 1948 1947 Nov. 1947 Oct. !948 CONSUMPTION• 11,967 11,942 11,944 + 0.2 + 0.2 Cotton ---------­ 2,025 + 16.0 -5.5 Linters ---------2,849 2,487 SPINNING ACTIVITY Spindles in place .. 243,000 241,000 282,000 + 4.7 +0.8 Spindles active _ 202,000 210,000 225,000 -10.2 -3.8 Total spindle hours 74,000,000 78,000,000 81,000,000 -8.6 -5.1 Average spindle 303 323 347 -12.7 -6.2 hours ----------COTTONSEEDt -31.9 Received at mills_ 214,499 314,931 188,693 +13.7 Cruahed ----171,362 170,869 158,970 + 7.8 +0.3 Stocks at end of month 474,855 431,718 480,407 -1.2 + io.o •In runnlnir bales. tin tons. TEXAS BUSINESS REVIEW than in October by, 31.9%. The decline is typical for this time of year. The cottonseed crushed was practically die same as in October. End-of-the-month stocks rose 10% from the October level. Lumber production in Texas and other southern states continued to show more of the signs of boom that have appeared in other Texas production indicat'lrs. Avern1?;e weekly production slipped 8.3% for the month, weekly shipments were off 11.4%, and the hacklog of unfilled orders fell 9.7%. LUMBER PRODUCTION IN SOUTHERN P INE MILLI (In board feet) Source: Southeni Pine Auoclatlon Percent chan&'e Item N ov. 1948 Oct. 1948 N ov. 1947 Nov. 1948 Nov. 1948 f rom from N ov. 1947 Oct. 19·18 Av•rage weekly pro­ duction per unit _ 193,erall1 uaed to meaoure buildlq activity, i.t recent otudi• b1 tbe United Stat" Bureau of Labor Statlotlco ID· hte tbere lo conolderable las In besinnln• conatructlon of bulldlasa fer whlcb .,.rmlto have been luued, and that actual coat• are DOY Zl"1 or more above the permit valuation. Loan• b1 aavlns• and loan ueoclatlona reflect the financlns of realdentlal houolns.) Except for engineering projects, the value of all types of construction contract awards in November was well above that for the same month of last year. Part of these increases may be attributed to further price inflation, but the number of houses, plants, and office buildings author· iz.ed has continued to grow. For example, during the first 10 months of 1948,' Houston and Dallas were third and fifth respectivel v among all cities in the nation in the number of dwelling units authorized. The two cities had increases of more than 40% over the same period in 1947; the nation as a whole, however, showed an increase of only 13%. The value of construction awards, except engineering, declined during November from October. However, a similar decline was felt at this same time last year. CONSTRUCTION CONTRACTS Source: Teza.a Contrutor Percent chanK"e Type of building Nov. 1948 Oct. 1948 Nov. 1947 Nov. 1948 N ov. 1948 from from Nov. 1947 Oct. 1948 TOTAL __$ 93,993,636 $107.033,214 $62,647,927 + 50.0 -12.2 Engineering _ l5,S62.303 14,105,628 15,219,105 + 0.9 + 8.9 Nonresidential 32,593.953 3 .897,874 20,155.958 + 61.7 -16.2 Residential _ 46,037,380 54.029,712 27,272,864 + 68.8 -14.8 Construction activity as measured by the value of buildir.g permits issued by the larger Texas cities rose slightly in November to $30,829,734 from S29,B9,981 in October. This increase brought total permit \alues back to a level midway between the August and September totals. Nevertheless the monthly values of building per­mits this fall have run consistently under the values recorded during the fall of 1947. High costs did not seem to defer building plans in the first half of 1948 when substantial gains over 1947 were reported, but an easing. up in construction activity is apparently in sight. When these 12-month decreases in permit values will appear in a fall in construction contract awards cannot be stated BUILDINC PERMIT5 November October November City 1948 1948 1947 TOTAL -------$80,829,734 $29,189,981 $35,718,923 ====================::::z:m- Abilene ----­ 286,785 495,486 293. 81' Amarillo ---­ 612,571 919.849 1,016,607 Austin --------­ 824.250 1,316.275 1,692,850 Beaumont -·-----­ 894,986 637 ,85' 820,786 Big Spring --· ·----­ 79,370 99,640 77,610 Bc.rger ----­Brownsville ___ 77,650 198,742 81 ,250 118,670 •2,960 100,685 Brownwood ---­ 59,098 84,208 78,180 Bryau ----­­ 93,250 81 ,826 111,680 Childress ---­ 14,100 8,790 22,450 Cleburne ----­ 76,725 15,497 28,675 Corpus Chrlatl 1,232,808 1,049,508 7,110,067 Dallas ---­ 6,047,295 5,120,688 4,H6,875 Del Rio 21,676 26,436 89,115 Denison ----­­ 97,194 66,294 81,947 Denton 122,600 80,800 100,860 Edinburg ----­ 93.686 47 ,060 70,400 Et Paso -----­ 425,891 2,872,018 1,190,606 F ort W orth --·-­ 2,704,058 2,246,518 8,181,93Z Gainesville ---­ 21,100 50,200 42,680 Galveston 136,971 190,692 289,531 GJ'eenville ----­ 161,120 87,426 24,400 H nrlingen ·---­ 802,911 98,620 185,400 Houston ----­ 7,663,925 7,829,700 5,7a8,620 J nchsonville --­ 88,000 44,900 88,160 Kenedy -·---­ 7,850 6,416 21,100 Kerrville ----­ 16,800 18,592 85,970 Lan~esa -----­ 15 '6,280 0 Lockhart ----­ 86,400 8,825 9,100 Longview 68,650 64.850 847,725 L ubbock 1,618,838 480,549 574,880 McAllen 81,300 87,850 81,865 Marshall 142,423 109,107 188,478 Midland -----­ 1,117 ,250 428,260 648,100 N acogdoches --­ 10,15? 20.800 20,800 New Braunfels --­ 208,026 128,407 87,791 P alestine 40,671 89,896 84,560 P ompa 141,640 417,696 28,660 P aris 24,20? 88,996 66,11 0 P lainview 167,500 127,000 229,000 Port A rthur ---­ 886,912 210,622 288,692 San An~elo 458,080 215,794 290,115 San Antonio 2,654,880 2,826,246 4,122,78' Seguin Sherman 28,500 66,932 40,266 57,828 18,070 117,72' S"'eetwater 81,925 21 ,565 59,880 T~mple -----­Texarkana ----­Texas City Tyler -----­­Victoria -·--­Woco -­----­W ichita F alls --­ 220,166 88,145 29,565 224,316 58,485 515,950 220,006 161 ,932 148,935 89,056 876.697 125,795 714 ,250 183,255 253,988 58,995 1,086,545 272,704 72,910 694,638 117,028 TEXAS BUSINESS REVIEW with accuracy, but sooner or later the declines in building permits will be reflected in the awards series. In number, the loans made bv savings and loan associ­ations in Texas dropped 7.4% between October and November 1948 but were down only 1.8% from the November total. In amount, a similar decline was recorded for the month, but a 1.7% gain for the 12­month comparison. Continued high real estate and construction costs were undoubtedly important factors in the 12-month picture, since both refinance and recondition loans were up more in amount than in number. LOANS MADE BY SAVINGS AND LOAN ASSOCIATIONS Source: Federal Home Loan Bank of Little Rock P ercent ch3nge Type Nov. 1948 Oct. 1948 Nov. 1948 Nov. 1948 N ov. from from 1947 Nov. 1947 Oct. 1948 ?-I UMBER, TOTAL.. 1,603 1,732 1,633 -1.8 -7.4 Construction -­-­ 422 499 478 -11.7 -15.4 PuTchase --·--·-·­ 559 606 700 -20.1 -7.8 Refinance ------­ 147 148 105 +40.0 -0.7 Recondition ---­ 223 224 153 +45.8 -0.4 Other ---------­ 252 255 197 +27.9 -1.2 AMOUNT, TOTAL­ $6,196,396 $6,704,052 $6,090,068 + 1.7 - 7.6 Ccnstruction -----------­ 2,062,122 2,417,336 1,927,722 + 7.0 -14.7 Purchase -------------­ 2,319,190 2,520,212 2,971,354 -21.9 -8.0 Rt.hnance --------­----­ 624,469 557,817 859,489 + 73.7 +11.9 Rt.condition -----------­ 473,309 443,153 251,630 +88.1 + 6.8 Other ----­-----­------­ 717,306 765,534 579,873 + 23:7 -6.3 Public Utilities (The conoumptlon of electric power by lnduotrlal concern• la • muouTe of the volume of lnduatrial activity, since It may be aa­aumed that the amount of power uaecl will be directly related to maaufacturlns volume. RHldentlal and commercial power conoump­tlon ahow a aeaaonal variation due to the chanslns amount of llslltlns nHded.) If production in Texas is due for a decline or leveling· off, no signs of such can be seen in the consumption of electric power. After adjustment for the normal seasonal decline, the index of industrial electric power actually increased slightly from October; compared to November of 1947, it gained 6.3%. In fact the consumption of power bv all types of users showed a marked increase over November of 1947. All types of users reported lower consumption in November than in October of this year. The biggest drop in commercial consumption (7.9%), followed by indus­trial and residential consumption (3.6% each) and "other" consumption (I.7%). The over-all monthly decline for all users was 4.3%. ELECTRIC POWER CONSUMPTION" (In thousands of kilowatt houro) Percent change Nov. Oct. Nov. Nov. 1948 Nov. 1948 from from Use 1948 1948 1947 Nov. 1947 Oct. 1948 TOTAL 594,184 620,837 531,709 + 11.7 -4.3 Commercial -·--­ 126,068 136,946 114,894 + 10.2 - 7.9 Industrial -···----­ 280,077 290,648 263,399 + 6.3 - 3.6 Residential -­ 94,367 97,901 82,317 +14.6 - 3.6 Other --·--·· 93,677 95,842 71,599 + 30.8 - 1.7 •Prepared from reports of 10 electric companies to the Bureau of Bllllinese Research. Natural Reaourcea (The production of crude petroleum la • maJor lnduatry In T-a and the chansee In the ,,ofume of production have a direct .,,..; upon the lneome produced In the State. Flsurea oa tbe number al well completlona by dlatrlcta Indicate the extent to which hW aourceo of oil and saa are belns developed and tbe areaa of the State In which drllllns operation• are In proceH.) The value of natural and casinghead gas produced again showed a remarkable increase. From November of 1947 to November of 1948 the gain was 96.4%; the rise was 27.0% from the preceding month of October. These changes take on added significance because of their favorable effect upon efforts to achieve better gas comervation throughout the State. The daily average production of crude petroleum showerl no change at all over the high level of October, hut compared to November of 194-7 it was 7.9% higher. The inrlex of crurle production inrlicates that despite steel shorta!"!es and Rtatutorv restrictions. the output is now slightlv over twice the prewar monthly average. Drilling activity for the vear to date continuerl to lead that for the same period la~t vear bv a fairlv wirle rnare:in. North Cent'"al Texas and West Texas held their lead in wells completed: the former also brought in the greatest number of dry holes while the latter co~pleted th~ largest number of producing wells among all major producing areas. The current industrial boom in Texas is already reflected in the value of the production of important Texas resources. Carbon black production in November was valued 149.2% over November 1947, crude oil production was up 44.2% in value, and the value of natural and casinghead {!,as rose 96.4%. Substantial gains were also recorded for crude oil and natural and casinghead gas between October and November of 1948, while the value of carbon black production fell 8.3%. WELL COMPLETION! Source: Th• Oa <>nd Gu Jov"'4l November 1948• Jan.-Nov. (all wells) District Total Oil Gas Dry 1948 1947 TEXAS --·-·---­------1,019 653 49 317 10,935 8,419 North Central Texas ---­··­ 327 187 3 137 3,411 2,642 West Texas ----·----·-245 212 82 2,931 2,066 P anhandle ---------­ 61 87 18 6 593 427 Eastern Texas ·--··----­ 51 27 7 17 538 620 Texas Gulf Coast ------­ 173 104 9 60 1,722 1,432 Southwest Texas ··-·-----· 162 86 11 65 1,740 1,338 •For four weeks endin g November 27, 1948. VALUE OF NATURAL RESOURCE! PRODUCED Source: State Comptroller of Public Account.. Percent chani• Nov. 1948 Nov. 1948 November October November from from Item 1948 1948 1947 Nov. 1947 Oct. 1948 ~~-~~~~-~­ Carbon black __$ 4,315,321 $ 4,704,763 $ 1,731,365 +149.2 - 8.3 Crude oil --·-····· 209,547,187 187,955,136 145,267,920 + 44.2 + 11.6 N atural and casing-head gas --····­15,930,255 12,544,009 8,112,140 + 96.4 + 27.0 TEXAS BUSINESS REVIEW AGRICULTURE Income ~amount of income recel•ed by farmer• b a compoalta m.... .. al tM prosperity of apiculture, taJcln1 into accO'Unt botla tlaa ,.._ of products sold ILDd tlae price11 received. Since tlae market· .... al many product• are coaeentratod In certal11 aeaaona of tba ,_, It b important that tlae data be adjusted for a....onal varia­... ID ont ... to alaow the bulc ei.....es In the altuatlon of apicul­ .....) Fann ca.sh income in Texas continued its slow but steadv decline in l\'ovember. the month's total of $193,°126,000 e"timated bY tbe Bureau of Business Research being 25.9% befow the October total. Even when seasonal decreases were taken into account, the drop was 7.67c. Compared with November 1947. income was down 6.27<:. and the total for the vear to date fell to 9.3% under the income received in th~ first 11 months of last vear. These decreases seem to indicate without much q~estion that the peak of farm income has been passed, but the level of farm prosperity is still verv high in comparison with the prewar period and considerably above the highest point reached during the war. Prices FARM CASH lNCOME indexes, 1935-39 = 100, Amount, Jan.-Nov. adjusted for seasonal variation (in thousands of dollars) District Nov. Oct. Nov. 194 1948 1947 1948 1947 TEXAS --395.0 427.7 421.1 $1,564,735 $1,726,127 703.8 645.0 164,295 256,828l-N ---561.4 1-S ---691.4 593.3 813.9 172,510 203,604 z 391.5 378.5 313.7 186,910 216,943 a 346.8 301.8 317.1 81,663 85,068 ' 1 1.5 329.6 231.2 257,798 271,323 199.9 288.6 216.9 95,375 93,034 590.0 104.3 333.6 62,247 55,416 7 285.6 243.4 252.6 98,003 91,918 341.2 306.7 358.6 154,866 157,938 331.1 253.2 373.8 118,692 122,579 10 319.3 333.0 394A 58,199 49,216 I A ---253.6 175.0 402.3 114,177 122,260 o_f many crops are down to support levels, but it appears likely that these supports will be continued in some form. The 1948 income pattern for the 12 crop reporting districts was fairly well set by the end of November­districts specializing in livestock production generally showed gains for the month and the year to date while districts specializing in the production of crops netted smaller returns. In the first group were the Trans-Pecos, Edwards Plateau, and the South Texas Plains, in the second group were the districts that normally contribute the larger share of the State total. With consistently lower incom~ month after month the latter group have pulled down the total income for the State. In November bigger returns were reported from the sale of calves, hogs, poultry, eggs, rice, and fruits and vegetables than in October of this year, but only the income from eggs was higher in November 1948 than in November 1947. Marketings cne lnel of farm lncoma ta affoct9cl •ot -IF bF ••-1ia pric.,., but b7 the yoJume of products farm.,.. MDII t. aarbt i. a riven month. Data on ohlpmenta of farm prOl!ucto muat a1aa .. uaed to explain the cba.n,aa ba the level of farm ba-• f,... month to month.) Early in November general rains in the Plains country led to a sizable spurt in the cattle market, but shipments of livestock declined 24.0% from October for the State as a whole and were 20.3% below November shipments a year ago. In other parts of the State the fall drought continued unbroken. It is significant that the drop in livestock shipments was much greater this fall for the interstate than for the intrastate movement, although the former is much larger than the latter. SHIPMENTS OF LIVESTOCK (in carloada) • Souree: Bureau of Business Research in cooperation with the Bureau of Agricultural Economics, U.S. Department of Agriculture Percent chaqe Classification Nov. 1948 Oct. 1948 N ov. 1948 Nov. 1948 Nov. from from 1947 Nov. 1947 Oct. 1948 TOTAL SHIPMENTS __ 7,851 10,333 9,856 -20.3 -24.0 Cattle ---­ 4,850 7,327 6,700 - 27.6 - 33.8 Calves --------­Hogs -­' -----­Sheep -­------· 1,641 654 706 1,516 583 907 2,054 465 637 -20.1 + 40.6 + 10.8 + 8.2 + 12.2 -22.2 INTERSTATE PLUS FORT WORTH --· 6,725 9,166 8,594 - 21.7 - 26.6 Cattle -------­Calves ------·­ 3,985 1,450 6,486 1,270 5,815 1,714 -31.5 -15.4 -88.6 + lU Hogs -------­Sheep 654 636 578 832 459 606 + + 42.5 5.0 + 18.1 -23.6 INTRATSTATE MINUS FORT WORTHt -­ 1,126 1,167 1,262 - 10.8 - S.5 Cattle ----­ 865 841 885 - 2.3 + 2.9 Calves -------­ 191 246 340 - 43.8 -22.4 Hogs Sheep ------­---­ 70 75 31 +125.8 -6.7 •Rail-car basis: cattle, SO head per ear; calves, 60 ; hogs, 80 ; and sheep, 250. tLntrastate truck shipments are not included. Fort Worth 1hipment. &re combined with interstate forwardings to show the bulk of markot disapp~nce for the month may be 1hown. TEXAS BUSINESS REVIEW In the poultry and egg shipments picture the only bright spot was the increased movement of eggs, particu­larly frozen eggs. Interstate receipts of frozen eggs were also up both for the month and for the year. RAIL SHIPMENT! OF POULTRY AND EGGS FROM TEXAS STATIONS (In carloada) Source: Bureau of Bialn.,.1 Reeearch In cooperation with the Division of Airrlcultural Statlstlce, Bureau of Agricultural Economics, U.S. Department of Agriculture November October November Cla•eification 1948 1948 1947 Chicken• -------------------­ 0 0 11 T1.rkeya --------------­186 ' 19, Egga-ehell equivalent• -------­ 63 72 49 Shell ----­----------­ 8 0 6 Frozen --------­ ---­ 22 12 14 Dried -----------------­ 2 6 2 *Dried egp and frozen egp are converted to a 1hell-egg equivalent on the following baala : 1 rail-carload of dried egp = 8 carloada of ahell ltll'P and 1 carload of frozen egg1 = 2 carloada of 1hell eggs. INTERSTATE RECEIPT! OF EGG! BY RAIL AT TEXAS STATIONS (In carloada) Source: Bureau of Bialnesa R ... earch In cooperation with the Division of Agricultural Statiatics, Bureau of Agricultural Economics, U.S. Department of Agriculture November October November Type 1948 1948 1947 TOTAL RIOOEIPTS-SHELL EQUIVALENT* --------------39 67 73 =::===============x Shell ----------------------­ 28 28 66 Frozen ----------------------------­ 8 6 6 Dried ---· 0 8 1 *Dried 1111'&'1 and frozen egga are converted to a 1hell-egg equivalent on the following baels : 1 rail-carload of dried egga = 8 carloads of abell ltll'P and 1 carload of frozen eggs = 2 carloads of shell egg1. Rail shipments of fruits and vegetables from South Texas and the Valley were disappointing at the start of the season in November. There was a limited movement of radishes from the Coastal Bend area. A killing frost RAIL SHIPMENTS OF FRUITS AND VECETABLESt (in carloada) Source : Compiled from reporte of Bureau of Agricultural Economics, U.S. Department of Agriculture Percent change Item Nov. 1948 Oct. 1948 Nov. 1947 Nov. 1948 Nov. 1948 from from Nov. 1947 Oct. 1948 TOTAL -------8,662 734 6,486 -35.l +385.3 Beets --------­ 15 18 -16.7 Cabbage ---------­ 74 6 32 +131.3 +ll.33.3 Carrots --·------­ 45 30 + 50.0 Grapefruit ---------· 1,348 887 2,228 -39.5 +248.3 Lettuce -------­ 63 64 + 16.7 Jdixed citrua -----­ 238 66 333 - 28.5 + 332.7 Mixed vegetables Orang.,. --­ 418 146 86 101 416 785 + - 0.7 81.4 +1094.3 + 44.6 Peppers ----­ 218 46 289 - 24.6 +384.4 Tomat099 -----­ 941 1,183 -20.6 Othen 66 21 202 - 72.3 +166.7 tFigurea ahipmenta. for oran~es and grapefruit include both rail and truck in mid-November was estimated to have done a million dollars' worth of damage to the El Paso vegetable crop. Damage to vegetables was rather general and severe in the Winter Garden and Eagle Pass districts, but little damage was reported at Laredo. Rains were expected to offset some of the loss. At month's end another frost hit the Valley unexpectedly, resulting in a slow-down in vegetable canning operations. Citrus orchards escaped damage. All told 3,562 carloads of fruits and vegetables were shipped from Texas in November, a drop of 35.1% below the total carloads shipped 12 months earlier. Pricea (The prices received by farmers constitute one of tbe elemftta of farm caah Income. Chances In prlcea are of primary concern to farmers and all bu1lneaam&n relyln1 on the farm market. Farmers are alao concerned with the prlcea which they have to P•J for commodities uaed In family maintenance and production alnce th1H prlcea help to determine their real income.) The downturn in prices received by Texas farmers came to a halt in November after a three-month's decline. The gain was slight, but it left the index at the same level as in mid-November 1947 and 200% above the 1909-14 base. Price movements varied sharply as can be seen from the accompanying table. Grains and feeds were up, hogs down, and cotton steady. Thus for this year it has been the fall in farm product prices resulting from record-breaking wages that has led to the drop in farm cash income. Prices paid by farmers also turned down in September and October to ease the situation. Nevertheless prices paid are substantially higher than they were in Nove~­ber 1948, and there is little likelihood of a general pnce break at this time. PRICES OF TEXAS FARM PRODUCTS Source: Bureau of Agricultural Economica, U.S. Department of Agriculture Nov. Oct. Nov. Commodity Unit 1948 1948 1947 Wheat -bu. $ 2.06 2.00 2.70 Corn bu. Oats __.. bu. Barley__________ bu. 1.43 0.96 1.19 1.43 0.91 1.16 2.07 1.12 1.65 Grain sorghum-------­cwt. Rice.--­---­----­bu. 2.20 2.76 2.06 2.20 8.20 8.00 Flaxseed_ bu. 6.70 6.66 5.70 Potatoes. bu. 1.66 1.65 1.25 Sweet potatoes Cotton lint bu. lb. 2.36 0.296 2.40 0.296 2.00 0.806 Cottonseed.----------ton 74.00 67.00 91.00 Cowpea•----------­-----­bu. Peanuts....----------------· lb. 4.80 0.101 8.90 0.102 6.00 0.097 Hogs.-···---------------------­cwt. Beef cattle.----­----------------------cwt. 21.50 20.10 23.40 20.20 24.00 16.30 Veal calves ...... ----------···· cwt. 22.90 22 .90 18.90 Sheep.... ---···----------------·· cwt. Lambs ....... --------------· cwt. 9.70 20.10 9.90 20 .30 9.90 17.20 Milk cowB---------­-----·· head 145.00 147.00 118.00 Chickens..------------­lb. 0.279 0.282 0.246 Turkeys. lb. 0.406 0.379 0.305 Eggs----­------­doz. 0.560 0.512 0.65 Butter.__ lb. 0.68 0.68 0.71 Butterfat__________Jb. 0.60 0.60 0.69 Milk, retail.--------­qt. 0.206 0.206 0.199 Milk, wholesale cwt. 6.60 6.60 6.96 Woo'---··· lb. 0.46 0.46 o.41 All hay, loose--------ton 21.60 20.30 21.00 Alfalfa hay, looee ton 80.00 27.00 81.00 TEXAS BUSINESS REVIEW Cold Stora.re November. For meat packing establishments th!"re has (la both perloda of abortqeo and aurplu1ea, the atorair• boldlllS• been a marked inncase in occupancy during the past of periabable food producta are Important becauae of their effect on 12 months. fl'lceo. The aeasonal nature of farm products la In part off1et by tile accumulation of atocka In perloda of peak production to be Fertilizer Salea withdrawn In perloda of low production. Deviatlona from the normal (Sales of fertilizer are Indicative of the "mount of money farmer• lnela of boldlnira will exert presaure on tbe price atructure.) need and are able to spend in keepins up the soil fertility of their farma. Sales fi1urea •re baeed on monthly statistic• for the equiva­ Declines were again more numerous than increases in lent number of abort tone of fertilizer represented by the tax t•a• cold storage holdings in Texas between October and aold to fertilizer producers and which •re required by law to be November of this year, although the gains in the stocks attached to each baa of fertilizer aold. ) of frozen vegetables and poultry, meat and meat products, A seasonal drop of over one-third in the purchase of and hides and pelts were substantial. Measured against fertilizer by Texas farmers put total sales for November the No,·ember 1947 holdings, only the storage of nuts, at 21,283 tons, approximately the same as in November cream {both fluid and plastic), and hides and pelts were 1947 but one·third higher than in November 1946. In up. the first 11 months of this year fertilizer sales were 18% Occupied cold storage space continued low for public above 194 7 and a little less than a third above the 1946 cold storage warehouses and high for private and semi­figure. Compared with the 14 states covered in the private warehouses and meat packing establishments in monthly report of the National Fertilizer Association, Texas showed up well. Fertilizer sales in these states COLD STORACE HOLDINCS ran only 9% greater for the January-November period Source: Production and Marketinit Admlni8tration, U.S. Department of this year than last. Aitr icult ure Cotton Percent chan2'e (The cotton balance ahHt aho.,,. the baalc dem..,d and aunl7 Nov. 1948 N ov. 1948 factors affectlnir cotton, whlcb la an outatandln1 ele....,t la tbe Unit N ov. 1 Oct. 1 N ov. 1 from from Item (OOO's) 1948 1948 1947 N ov. 1947 Oct. 1948 farm Income of tba State.) Fresh ngetahles _ lbs. 1,088 1,426 3,711 -70.7 -23.7 In spite of the large 1948-49 cotton crop in the United Frozen vegetables _ lbs. 2,878 2,639 3,544 -18.8 + 9.1 States, its market position has become relatively strong Dried and evapo­ due to two major causes. In the first place, disappearance, 704 996 1,355 -48.0 -29.3 Froien fruits __ lbs. 5,270 5,292 5,918 -10.9 -0.4 including consumption in the United States and exports, Nuts -------lbs. 2,756 • ,482 646 + 326.6 -38.5 is running ahead of last year. In the second place, the Dairy products --lbs. 7,955 9,539 10,625 -25.1 -16.6 rated fruits --lbs. amount of this cotton crop going into Government loan Cream: already about equals the difference between the cotton 923 941 631 + 46.3 1.9 Fluid ____ lbs. 481 521 266 + 80.8 7.7 balance now (December 1) and the balance at this time Plastic _,,__ lbs. 442 420 365 + 21.1 5.2 + a year ago. Creamery butter _ lbs. 1,492 1,752 1,516 -1.6 -14.8 Because of the heavy export program under E.C.A., it Evaporated and is calculated that exports will continue to overbalance condensed milk _ lbs. 987 1,132 3,750 -73.7 -12.8 Cheese, all varitiee lbs. 4,553 5,714 4,728 -3.7 -20.3 consumption in the United States running somewhat E~gs: below last year, and thus keep disappearance ahead of 47 80 61 -23.0 -41.3 Shell --·--cases last year throughout the year. This means that there will Frozen ____ lbs. 7,966 9,642 8,661 -8.0 -17.4 be a smaller free market supply than existed in the Dried lbs. 2,158 2,275 3,611 -40.2 -5.1 Froten poultry -·· lbs. 1,952 1,562 3,205 -39.1 + 25.0 rather tight situation last year and that the market will Meat and meat rather tight supply situation last year and that the market products ___ lbs. 15,165 13,852 17,208 -11.9 + 9.5 will have to be strong enough to draw some cotton out of Hides and pelts _ lbs. 2,729 2.101 2,104 + 29.7 + 29.9 loan before the season ends. COTTON BALANCE SHEET FOR THE UNITED STATES AS OF NOVEMBER 1, 1948 {in thousands of running bales except as n oted) Year C&rl70H1' A uit.1 lmporbl to Dec. 1* Government eatimate as of Dec.1 T otal Con.onmp. tlon to Dec. 1 Exporbl to Dec. 1 Total Balance u of Dee. 1 1938-39 193~0 194141 19U-12 194~3 19•8--44 11,538 13,033 10,596 12,376 10,590 10.687 54 48 42 129 106 51 12,008 11,792 12,686 10,976 12,9!2 11,47~ 23,595 24,873 23,324 23,481 23,677 22,216 2,236 2,659 2,801 3,553 3,771 3,421 1,535 2,828 495 577 514 626 8,771 4,997 3,296 4,13() 4,285 4,047 19,824 19,876 20,028 19,351 19,392 18,169 19H--45 1945--46 10,727 11,160 67 111 12,859 9,195 23,143 16,828 3,262 2,942 511 924 3,773 3,866 19,370 12,962 19.S--47 1947--48 7,522 2.521 144 198 8,482 11,694 16,148 14,418 3,483 3,024 1,203 264 4,686 3,288 11 ,462 11,125 19•8--49 2,823 124t 14,937 17,884 2,849 532t 3,381 14,503 The cotton year beitins Aultll•t 1. *In 500-pound bales. tTo Novmiber 1. LOCAL BUSINI Percent change Percent change City and item November 1948 Nov. 1948 from Nov. 1947 Nov. 1948 from Oct. 1948 City and item November 1948 Nov. 1948 from Nov. 1947 Nov. 1948 from Oct. 1948 ABILENE: BROWNSVILLE: Retail sales Department of independent stores.­and apparel store sales -- 3.9 3.8 -- 6.6 11.3 Retail sales of independent stores__ Postal receipts $ 14,470 + 14.0 + 24.1 + 4.1 -8.1 Postal receipts ---­------------------$' Building permits ----------­-----$ 35,372 286,785 + 17.9 2.4 -13.3 -42.1 Building permits ---­---­-$ Export cars unloaded -----­-­198,742 134 + 97.5 -59.5 + 67.5 -59.1 Bank debits to individual accounts (thousands) -----­------$ End-of-month deposits (thousands)• $ Annual rate of deposit turnover ----·· Air express shipments ·-·---·-···---­ 36,497 42,688 10.3 166 + 9.8 + 6.4 + 3.0 -10.3 + 0.5 + 0.6 0.0 -18.2 Air express shipments ------­Coastal cars unloaded -------­Water-borne commerce (tons) ___ BRYAN: 469 12 50,148 -74.4 -53.8 -47.5 + 9.6 -81.0 -51.9 Unemployment --------··----­Placements in employment ----------­Nonagricultural civilian labor force 700 613 18,950 -30.0 + 6.4 -1.2 -6.7 + 25.6 + 0.8 Department and Postal receipts . Building permits apparel store sales $ --­---------­$ 9,104 93,250 -12.5 + 6.9 -16.5 -14.7 + 10.1 + 14.7 Air express shipments --·------­ 25 + 4.2 -32.4 AMARILLO: Retail sales of independent stores__ Department and apparel store sales Postal receipts --­-­--··-­----------$ Building permits --­--­-------------­-----$ Bank debits to individual accounts 68,730 512,571 -1.6 -6.5 + 17.6 -49.6 3.2 7.7 7.0 -44.3 CORPUS CHRISTI: Retail sales of independent stores_ _ Department and apparel store sales Postal receipts ······---------­------­--$ Building permits ·----­------$ 68,892 1,232,308 + 19.9 -10.2 + 15.8 -82.7 + 6.6 0.1 8.7 + 17.4 (thousands) _$ End-of-month deposits (thousands)• $ Annual rate of deposit turnover ---­Air express shipments ------­-·­Unemployment 93,435 85,441 13.2 450 1,400 + 8.3 0.2 + 9.1 -22.0 6.7 2.9 + 0.8 4.3 -23.2 + 16.7 llank debits to individual accounts (thousands) ----------­$' End-of-month deposits (thousands )• $ Annual rate of deposit turnover ___ Air express shipments ---------­75,768 81,417 11.3 537 + 4.9 + 9.1 4.2 8.7 + 0.6 + 1.0 0.0 3.4 Placements in employment -­--­Nonagricultural civilian labor force 847 36,000 7.3 + 3.7 -38.5 + 0.8 Unemployment ---------­---­--­Placements in employment __ _ _ Nonagricultural civilian labor force 1,400 1,228 53,250 -89.1 + 19.6 + 7.9 + 16.7 -15.4 + 1.8 AUSTIN: 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 -­Air express shipments -----­-·­ 137,019 824,250 106,779 101,029 12.6 502 -1.7 + 1.9 + 29.4 -51.3 + 10.8 + 0.5 + 11.5 -10.8 1.8 + 7.2 + 3.2 -37.4 + 2.4 1.2 + 4.1 -10.8 Water connections ----­----­Electrical connections CORSICANA: B"nk debits to individual accounts (thousands) -------------­-$ End-of-month deposits (thousands)• $ Annual rate of deposit turnover __ DALLAS: 23,082 26,829 11,138 20,682 6.5 + 8.9 + 8.5 + 8.7 + 1.6 + 8.3 + 0.6 + 0.8 -15.0 + 0.7 -16.7 Railroaci carloadings : Retail sales of independent stores..-­ 1.9 + 0.6 Inbound ---------­--­-­Outbound -------------­-­ 1,070 407 -3.5 + 38.0 -11.1 -31.8 Apparel stores -------­Automotive stores -----···---­ 2.1 + 4.4 3.5 8.1 Unemployment ----·-·---­-----­­Placements in employment ---···--­N onagricultural civilian labor force 1,300 991 44,750 -18.5 3.6 + 1.3 -- 3.7 19.6 0.0 Drug stores -----­------­Eating and drinking places __ Food stores --·-··-----­----­ 0.4 2.5 1.1 2.3 -10.9 + 16.6 Furniture and household stores _ -42.8 + 16.2 BEAUMONT: 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 and coastal cars unloaded --·­Air express shipments ----------­Unemployment (area ) ····-·······-·-····--Placemen ts in employment (area) ___ Nonagricultural civilian labor force 50,902 894,986 103,357 102,263 12.1 427 321 4,450 2,070 + 8.7 + 1.6 + 7.7 +179.0 + 22.0 + 5.8 + 13.1 -20.9 -10.3 -21.2 -18.7 -3.1 + 8.5 -22.3 + 40.4 0.02 + 0.7 4.0 8.8 -17.9 + 1.1 + 1.0 General merchandise stores ____ Lumber, building materials, and hardware stores --­------------­All other stores ------------­Postal receipts _____________$ 871,866 Building permits ---------$ 6,047,295 Air express shipments ·-------------· 9,708 Bank debits to individual accounts (thousands) ------------$ 1,078,512 End-of-month deposits (thousands)• $ 758,049 Annual rate of deposit turnover ___ Unemployment -··········--···-··---­Placements in employment --------­-----­Nonagricultural civilian labor force, 17.4 4,500 4,959 238,600 1.2 3.2 + 8.2 + 15.7 + 45.8 + 1.9 + 16.6 + 7.3 + 10.1 -27.4 + 7.7 + 6.1 + 13.8 0.0 + 12.1 -2.5 + 18.1 9.7 + 1.5 + 4.1 0.6 + 16.4 -27.7 + 1.1 (area) -----------······---­ 76,000 + 8.8 1.4 DENISON BROWNWOOD: Retail sales of independent stores.__ Department and apparel store sales P ostal receipts -····-------·­------·-··-$ Building permits --·-------·-----$ Air express shipments ------------­---­ 11,331 59,098 45 -14.1 -13.3 + 15.5 -24.4 + 40.6 -11.2 -17.1 -11.1 + 72.8 + 7.1 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)• $ 10,931 97,194 9,819 9,858 + 2.0 -9.6 + 17.9 + 56.9 -8.7 -15.6 + 3.8 + 75.8 -5.4 -10.7 *Excludes deposits to credit of banks. *Excludes deposits to credit of banks. CONDITIONS Percent change Percent chang Nov. 1948 Nov. 1948 Nov. 194 Nov. 194 November from from November from from City and item 1948 Nov. 1947 Oct. 1948 City and item 1948 Nov. 1947 Oct. 1948 EL PASO: HOUSTON: Retail sales of independent stores__ 1.4 + 6.7 Retail sales of independent stores____ + 2.3 1.2 Department and apparel store sales 8.9 + 2.3 Apparel stores --------­-4.8 2.8 Postal receipts -·---····-------------$' 132,973 + 52.5 12.0 Automotive stores ----------­+ 20.6 + 5.7 Building permits --------------------$' 425,891 -64.3 -82.1 Drug stores ·-·-·······--------------+ 1.7 4.1 Eating and drinking places .............. 0.2 9.0 Bank debits to individual accounts (thousands ) -----------------------$ 138,646 + 20.3 + 2.8 Food stores ····-------··········------·· 4.2 5.3 Furniture and household stores ____ End-of-month deposits (thousands)> $ 114,195 + 2.6 + 0.6 6.2 + 5.2 General merchandise stores -----­2.7 1.0 14.6 + 15.9 1,201 -28.0 -20.0 Lumber, building materials, and Annual rate of deposit turnover ----­ + 1.4 Air express shipments -------­1,900 -13.6 + 5.6 hardware stores ----------------+ 22.6 -17.7 Unemployment -------------------­ 45.1 All other stores ---------------------- 13.4 + 2.6 Placements in employment ------------­1,207 + + 8.8 Nonagricultural civilian labor force 52,050 + 2.5 + 1.2 Postal receipts ·····-----------------------------$ 582,267 + 26.1 + 0.9 Building permits --·-····--------------------$· 7,663,925 + 83.6 + 4.6 Air express shipments ---------4,831 -10.8 -14.2 FORT WORTH : Export and coastal cars unloaded ___ 5,680 + 32.7 + 13.6 Retail sales of independent stores____ + 2.4 -1.7 Bank debits to individual accounts -15.1 -10.9 Apparel stores ---------------­ (thousands) ----------$ 1,081,976 + 20.4 4.7 + 8.5 + 4.1 End-of-month deposits (thousands)• $ 924,663 + 13.0 + 2.7 Automotive stores -----------------­ Eating and drinking places -------­+ 8.6 6.8 Annual rate of deposit turnover ___ 14.3 + 7.5 5.3 11.2 Food stores ------·-····-··------------­-2.2 Unemployment ------····------------­7,200 -10.0 + 2.9 Furniture and household stores --­+ 17.8 + 8.0 Placements in employment 4,311 -16.5 -25.6 ---------­ General merchandise stores -----­ -1.8 + 2.0 Nonagricultural civilian labor force 325,200 + 8.1 + 0.2 Lumber, building materials, and + 27.2 -13.6 hardware stores -------­ -1.6 + 8.5 LAMESA: All other stores ---------­ Retail sales of independent stores._ 352,132 + 3.1 -4.7 + 0.4 + 11.8 Postal receipts -------------$ 2,704,058 -15.0 + 20.4 Postal receipts ····------------$ 5,428 + 3.4 -13.0 Building permits ------------------$ 1,979 + 7.6 + 10.3 Building permits --·····----------------$ 15 -100.0 Air express shipments ---------­ Bank debits to individual accounts 341,248 + 12.3 + 3.8 (thousands) ----------------$ LOCKHART End-of-month deposits (thousands)• $ 296,362 + 6.3 + 3.1 Retail sales of independent stores_____ + 30.6 + 16.3 Annual rate of deposit turnover --­ 14.0 + 6.9 + 1.4 Department and apparel store sales -10.4 -5.7 5,700 5.0 + 5.6 Unemployment ------------­ ­ Postal receipts -----------------------$ 2,157 5.7 -18.2 4,029 4.5 4.6 Placements in employment -----­ 36,400 +291.4 +322.0 Building permits ········---·-····----------$ Nonagricultural civilian labor force 136,500 + 2.3 + 0.4 Dnnk debits to individual accounts (thousands) -----------$ 3,285 + 5.9 7.1 End-of-month deposits (thousands)• $ 5,313 0.8 3.8 GALVESTON : + 11.7 + 13.4 R•tail sales of independent stores--­3.3 + 5.7 Department and apparel store sales 52,578 + 8.3 LUBBOCK: Postal receipts ----------------$ -1.5 Building permits _______ ____$ 136,971 49.2 -28.1 Retail sales of independent stores_____ _ -0.9 1.7 Dank debits to individual accounts Department and apparel store sales -11.4 5.1 (thousands) --------------$ 67,024 + 10.4 1.9 Postal receipts -------------------$ 49,656 + 13.5 16.7 + 2.5 End-of-month deposits (thousands) • $ 98,939 + 8.9 Building permits --------·-------$ 1,618,838 +181.6 +236.9 Annual rate of deposit turnover --­Bank debits to individual accounts 8.3 + 3.8 2.4 + 8.3 + 13.6 Export and coastal cars unloaded -10,458 (thousands) -------------.$ 79,555 8.8 + 7.1 -0.9 Air express shipment.s -------­334 11.9 Er,d-of-month deposits (thousands)• $ 67,544 + 3.2 0.7 Unemployment (area) -------­2,100 0.0 0.0 Annual rate of deposit turnover ---­14.0 15.7 + 2.2 Placements in employment (area) --­Air express shipments -----------­ 591 -33.7 -31.7 402 + 12.0 + 11.7 Nonagricultural civilian labor force Placements in employment ----­783 + 8.4 5.7 0.0 (area) 54,600 -5.6 Nonagricultural civilian labor force 27,100 + 7.1 + 1.4 LAREDO: MARSHALL: -22.l + 0.5 Department and apparel store sales 5.3 3.2 Retail sales of independent stores.._ . 16,193 + 16.0 Postal receipts -------------------$ 5.5 + 1.3 Department and apparel store sales + 5.1 Bank debits to individual accounts 14,568 + 50.5 + 16.5 15,721 + 2.7 1.1 Postal receipts -------·---------·-$ (thousands) --------·-------$ 142,423 -14.4 + 30.5 + 2.6 Bi:ilding permits ------------$ End-of-month deposits (thousands)• $ 22,299 + 6.0 Annual rate of deposit turnover -­ 8.5 4.5 1.2 -14.9 8.6 Air express shipments -------251 PLAINVIEW: Electric power consumption 0.6 + 3.5 Retail sales of indep•ndent stores ---­ 5.3 7.0 (thousand KWH) ------2,725,380 13.6 11.0 Natural gas consumption (thousand Department and apparel store sales 9,191 + 16.1 2.8 45,913 + 19.8 + 18.1 Postal receipts ----------------------------$ cu. ft.) ·-·---------------------- 167,500 26.9 +31.9 Building permits ------······----·$ Tourist cars entering Mexico --­1,996 + 1.8 + 5.8 51 -1.9 Air express shipments ------- Tcurists entering Mexico ------6,046 + 3.7 -3.1 *Excludes deposits to credit of banks. •Excludes deposits to credit of banks. LOCAL BUSINES·S CONDITIONS {Continued) Percent change Percent change Nov. 1948 Nov. 1948 Nov. 1948 Nov. 1948November from from November from from City and item 1948 Nov. 1947 Oct. 1948 City and item 1948 Nov. 1947 Oct. 1948 PORT ARTHUR: TEMPLE: Retail sales of independent stores_______ + 2.2 2.4 Retail sales of independent stores.______ + 6.8 -6.3 Department and apparel store sales 5.9 + 3.7 Department and apparel store sales 10.4 19.5 - - P ostal receipts ---------------------------$ 26,557 + 8.0 3.5 Postal receipts --------------------------___$ 16,058 + 83.6 + 1.8 Building permits -----------------------------------$ 336,912 + 41.1 + 60.0 P.uilding permits ----------------------------$ 220,166 -13.8 + 44.9 Bank debits to individual accounts Air express shipments ---------------------56 -27.3 -20.0 (thousands) -----------------------------------$ 33,939 + 9.8 3.5 End-of-month deposits (thousands)• $ 40,023 + 3.2 + 4.6 Annual rate of deposit turnover ---­10.4 + 9.5 5.5 TEXARKANA: Export cars unloaded -----------------­504 -28.8 -88.2 R€-tail sales of independent stores___ -0.4 -5.7 Ccastal cars unloaded -------------------­880 -4.1 -24.3 Department and apparel store sales -20.4 -12.9 Air express shipments ----------------------­201 + 1.5 0.5 Postal receipts ----------------------------------$ 28,247 + 21.8 -18.6 Unemployment (area) -------------------­4,550 -21.2 + 1.1 Building permits ------------------S 88,145 + 40.9 -42.2 Placements in employment (area) _ 2,070 -18.7 + 1.0 Bank debits to individual accounts Nonagricultural civilian labor force (thousands) ----------------------$ 26,825 -10.0 (area) -------------------------------------76,000 + 8.8 1.4 + 0.8 End-of-month deposits (thousands)• $ 22,786 + 1.0 0.0 Annual rate of deposit turnover ----­8.5 + 1.2 -1.2 SAN ANGELO: Air express shipments ----------­78 -24.3 +810.5 Retail sales of independent stores_____ _ -6.5 2.4 Unemployment ----------------­2,900 0.0 -3.8 Department and apparel store sales -6.0 6.1 Placements in employment ----------­610 -28.7 -14.7 Postal receipts --------------------------------------$ 28,539 + 16.1 7.5 Nonagricultural civilian labor force 85,350 + 8.1 + 0.6 Bulldin11: permits ----------------------$ 458,080 + 57.9 +112.8 Bank debits to individual accounts (thousands) -----------------$ 30.935 + 5.8 0.4 TYLER: End-of-month dep011its (thousands)• $ 40,843 + 2.9 + 2.2 Retail sales of independent stores___ _ + 4.2 + lU Ar.nual rate of deposit turnover -------­9.2 +u 4.2 Department and apparel store sales + 10.1 + 2.7 Air express shipments ------------­463 -81.7 + S.6 Postal receipts ---------------------S 40,909 + 86.8 + 12.2 Unemployment -------------------------­640 -8.6 + 11.8 Bt:ilding permits ---------------$ 224,816 -17.7 -40.6 Placements in employment -----­447 + 10.4 -15.8 Bank debits to individual accounts Nonagricultural civilian labor force 17,540 + 9.2 + 1.2 (thousands) ------------------S 41,034 + 13.8 0.5 End-of-month deposits (thousands)• $ 54,277 + 12.2 0.0 Annual rate of deposit turnover ------­9.1 + 2.2 0.0 SAN ANTONIO: 228 -42.6 -47.8 Retail sales of independent stores____ _ + 1.0 +u Air express shipments --------------­Apparel stores ------------­-4.2 6.7 Automotlve stores -------------+ 16.7 1.8 Drug stores -----------------------------­ -1.2 7.8 WACO: !)ating and drinking places ------­-10.l 7.2 Retail sales of independent stores___ + 13.1 2.6 Food stores ----------------­+ 0.1 Department and apparel store sales -0.8 6.4 0.8 Furniture and household stores --­8.8 + 9.S Postal receipts -----------$ 70,898 + 19.8 6.9 General merchandise stores ----·--­+ 0.9 + 21.2 Building permits! ---------------------$ 516,950 -1!.2 -27.8 Lumber, building material, and Bank debits to individual accounts hardware stores ----------9.1 -10.8 ( thotlllands) -------------S 58,075 + 8.6 5.8 All other stores -------------10.0 -0.4 End-of-month deposits (thousa!'m)• S 67,898 + 0.5 + 1.1 P011tal receipts ------------------S 314,219 + 22.8 -1.7 Annual rate of deposit turnover __ 9.5 + u 7.8 Building permits ------------------------$ 2,654,880 -35.6 + 14.2 Air exprees shipments ----------­202 9.i -28.8 Air express shipments ----------------2,291 -82.3 8.5 Unemployment -----------­2,600 -20.6 0.0 Bank debits to individual accounts 681 -­ Placements in employment ---­10.4 22.9 (thousands) ----------------------$ 285,244 + 6.0 2.4 Nona11:ricultural civilian labor force 46,100 -1.8 + 0.2 End-of-month deposits (thousands)• $ 822,781 + 1.4 + 1.4 Annual rate of deposit turnover -­8.8 + 4.8 8.8 Unemployment ---------------------------­8,750 -44.9 0.0 WICHITA FALLS: Placements in employment -------------­2,881 -12.9 -10.6 Nonagricultural civilian labor force 158,200 + 1.2 + 0.7 Retail sales of independent stores._ + 11.8 + 0.1 Department and apparel atore sales + 8.9 6.2 Postal receipts ---------S 60,346 + 88.6 8.6 TEXAS CITY: Buildin11: permits -------------S' 220,005 + 88.0 + 20.1 Retail sales of independent stores_______ -6.3 + 0.2 Bank debits to individual accounts Department and apparel store sales -35.2 -12.4 6.1 (thousands) -------·---$ 66,668 + 17.4 P OFtal receipts ----------------------------$ 8,781 + 9.8 -5.6 + 0.6 End-of-month deposits (thousands)• S 82,660 + 7.8 Building permits -------------------------$ 29,565 -97.8 -66.8 Annual rate of deposit turnover -­8.S + 7.8 6.7 Coastal cars unloaded ------------------·------­263 -34.3 -53.0 8.0 Unemployment (area) --------------­2,100 0.0 0.0 Air express shipments -------­847 + 41.1 Placements in employment (area) __ 591 -33.7 -Sl.7 Unemployment ---------­1,065 -6.0 0.5 Ncnagricultural civilian labor force Placements in employment -----­682 + 82.2 -12.0 (area ) -----------------------------54,600 -5.6 0.0 N vna11:ricultural civilian labor force 82,566 + 9.4 + 0.8 *Excludes deposits to credit of banks. •Excludes dep011ita to credit of banks. TEXAS BUSINE.5S REVIEW FINANCE Bank Credit (S-Mnk credit Is eaaentlal to all bualneH, the ..-dltl.,... of ... cmamerclal banks and the Federal Reserve Banks are a aipift· -t Indicator of the state of buainesa. Cbanirea In the volume of trWlt that the banka have outatandlq reflect tbe atate of bualneaa. n. _.tlticna of tbe Federal Reserve Banks In like manner ...a.eta • -.lltion of credit aYallable to commorclal Hnka.) Only minor changes were reflected in the statement of condition of the weekly reporting member banks in the Dallas district. Total loans and investments which have been increasing for the past several months continued to increase this month, but the increase was considerably less than in previous months. Loans showed only a slight increase but increases in loan were slightly greater per­centagewise than increases in investments. Total govern­ment securities, as last month, remained almost un­changed in the aggregate, but the movement from longer maturities to shorter maturities continued. Treasury bills showed an even greater increase than for last month and treasury certificates increased slightly, while treasury notes decreased considerably and United States bonds decreased slightly. Other securities which have followed no definite pattern over the past year showed only a alight increase this month. A slight decrease in reserve with Federal Reserve Banks and a considerable decrease in cash in vault were more than offset by a large increase in balances-with domestic banks. Total deposits increased ~lightly this mo!1th, ~e increase resulting from increasmg demand deposits, while time deposits and United States government deposits decreased. Capital accounts remained unchanged from last month. CHANCES lN CONDITION OF WEEKLY REPORTlNG MEMBER BANKS• Source: Board of Governors of the Federal Reserve Syst em Percent change Nov. i948 Nov. 1948 Nov. i947 from from from Item Nov. 1947, Oct. 1948 Oct. 1947 ASSETS Loans and invest ments - - - - + 1.0 + 1.0 + 2.4 Loans + 10.4 + 1.3 + 6.8 Total U.S. Government securit ies - - 7.6 + 0.7 - 0. 1 Treasury bills + 52.9 + 67.6 + 21.4 Treasury certificates of indebted­ ness ---­ ----­+ 32.9 + 0.4 8.0 Treasury notes ----­-­-46.0 - 11.8 + 3.3 united States bonds -12.8 0.4 + 0.6 Other securities ·- - --­+ 8.0 + 0.8 0.9 Reserve with F ederal Reserve Bank + 10.9 0.5 + 3.3 C:i•h in vault ----·---­ 3.0 5.9 6.7 Balsnces wit h domest ic banks -­+ 7.3 + 8.1 7.8 LI ABILITIES Total deposits (except interbank) -+ 6.8 Dema nd deposits adj ust ed --­+ 5.9 'I ime depos its + 9. 7 + + 2.2 3.2 1.2 + + + 1.5 2.1 0.3 U.S. Government depos its -­- + 25.0 - 12.5 - 15.2 Interbank deposits: Comestic banks 8.1 - 1.9 + 0. 6 Jo'oreign banks ---­--­0.0 CAPITAL ACCO UNTS + 5.4 + 25.0 o.o + 0.0 0.6 *Percentage compa risons based on week ending nearest ,the cloae of calendar monlb. The summary statement of condition of the Dal.ltu Federal Reserve Bank indicates that the rate of increase in the bank's resources is slightly less than for the past few months. This increase is represented by increases in gold certificate reserves and "other" assets which more than offset decreases in government securities, discounts and advances, and "other" cash items. Increases in liabilities balanced out most of the increase in resources, the larger part of the increase resulting from an increase in deposits with Federal Reserve notes increasing slightly, while "other" liabilities declined. Capital accounts showed little change. SUMMARY STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANK OF DALLAS (In thousand3 of dollars) Source : Board of Governora of the Federal Reu rve Syatem Percent cha ng e Classification Dec. l 1948 N ov. 3 1948 N ov. 19•8 N ov. 19•8 Dec. 3 from from 1947 Nov. 194 7 Oct . 1948 ASSETS Gold cer tificate reserves --·-­ 629, 759 622,910 528,065 + 19.S + l.1 U .S. Government securit ies _____l,049,824 1,053,176 981,682 + 6.g 0.3 Dkcount.s a nd advances ---­-- 7,697 8,595 8,947 -U.O - 10.• Other cash ------­ 12,745 13 ,821 13,740 - 7.2 - , _3 Other assets ·-··-···­ 141,592 125 ,623 119,026 + 19.0 + 12.7 TOTAL ASSETS __ l ,841,617 1,823 ,625 1,651,460 + 11.6 + 1.0 LIABILITIES J;'ederal reserve n otes -------­--· 631,437 630,068 629,340 + 0.3 + 0.2 Deposits _ ___l,066,171 1,043,395 897,222 + 18.8 + 2.2 Other liabilities __ 115,019 122,264 99,696 + 15.4 5.9 TOTAL LIABILITIES _ l ,812,627 1,795,722 1,626,258 + 11.5 + 0.9 Cai.ital paid in _ 7,804 7,798 7,270 + 7.8 + 0.1 Su1plus -----­ 15,418 16,418 15,084 + 2.2 0.0 Other capital accounts ---­ 5,768 4,692 2,848 + 102.6 + 22.9 TOTAL LIABILITIE S AND CAPITAL ACCOUNTS __l ,841,617 1,823,625 1,651,460 + 11.5 + l.O Bank Debits (Since the bulk of hualnoee tranaactlou are eottl.. bp UKk. chanpa In bank deblta to Individual accouata ....,..•..,t chua•oe In the volume of traaaactlona uul are a bulc •-ar• el an.a-. actlYilJ'.) Bank debits in 20 Texas cities decreased slightly in November; however, the decrease was not nearly so great as the decrease recorded for the same period a year ago. The increase during the past 12 months was 14.6% com­pared with an increase of 19.1 % during the preceding 12 months, indicating a slackening in the rate of increase during the past year. However, the slight drop in bank debits this month does not indicate that the upward trend is coming to an end inasmuch as the seasonally adjusted index shows an increase of 5.9% over the previous month, because this month's decrease is entirely seasonal. Gains were recorded in seven cities, led by Lubbock and Fort Worth with El Paso and Austin showing signifi­cant increases. Corsicana and Texarkana turned in the greatest decreases. The annual rate of deposit turnover declined slightly from October to November and still represented a slight advance over the figure for a year ago. The seasonally adjusted index of bank debits showed a considerable increase (from 440.6 in October to 466.4 in November) as compared with a slight decline last month and only a slight increase for November of last year. BANIC DEBITS• (in thousands of dollars) Source: Board of Governors of the Federal Reserve System Percent change City Nov. 1948 Oct. 1948 Nov. 1947 Nov. 1948 Nov. 1948 from from N ov. 1947 Oct. 1948 TOTAL --·-····---$3, 707 ,364 $3,742,506 $3,283,857 +14.6 -0.9 Abilene ----­ 36,497 36,329 33,234 + 9.8 + 0.5 Amarillo -----­- 93,435 96,178 86,306 + 8.3 - 2.9 Austin -- ----­ 106,779 104,288 96,397 + l0.8 + 2.4 Beaumont -­ 103,357 103,382 84,712 +22.0 -0.02 Corpus Christi __ 75,768 75,280 72,196 + 4.9 + 0.6 Corsicana ----­ 11,138 13,107 10,242 + 8.7 -15.0 Dallas ---­--·-·· 1,078,512 1,062,490 924,995 +16.6 + 1.5 El P aso -------­ 138,646 134,854 115,237 +20.3 + 2.8 Fort Worth --­ 341,248 328,724 303,978 +12.3 + 3.8 Galveston --·-··­ 67,024 68,307 60,711 +10.4 -1.9 Houston ------1,081,976 1,135,281 899,009 +20.4 -4.7 Laredo -----­-­ 15,721 15,888 15,312 + 2.7 - 1.1 Lubbock ---­ 79,555 74,280 87,250 - 8.8 + 7.1 P ort Arthur --··· 33,939 35,160 30,905 + 9.8 - 3.5 San Angelo ----­ 30,935 31,074 29,229 + 5.8 - 0.4 San Antonio -····­ 235,244 241,084 221,973 + 6.0 - 2.4 Texarkanat --­ 26,825 29,815 26,605 + 0.8 -10.0 Tyler ---­ 41,034 41,245 36,059 +13.8 -0.5 Waco - - ··­ 53,075 56,029 51,253 + 3.6 - 6.3 Wichita Falls .. 56,656 59,711 48,264 +17.4 -6.1 •Debits to deposit accounts except interbank accounts. tincludes t wo banks in Arkansas, Eighth District. Corporation Chartera (The 118ue of corporation chart.... meuurea the adclltlona te th• hualneaa population and reflects the atat• of optimiam er peealmlam of bualneaamen.) The Secretary of State reports that charters were granted to 228 corporations in November, as compared with 254 in October and 288 in November 1947. Though CORPORATION CHARTERS ISSUED BY CLASSIFICATIONS Source : Secretary of State November October November Classification 1948 1948 1947 DOMESTIC CORPORATIONS Capitalization• ---­--- --$5,271 $4,729 $7,458 Number 228 254 288 Banking~finance 9 6 6 Construction -------­- 17 16 20 Manufacturing 18 30 32 Merchandising 71 67 69 Oil 9 16 6 Public service 1 1 Real estate 28 33 36 Transportation 6 8 7 All others 38 56 77 No capital stock ----­-­-- 31 33 46 :FOREIGN CORPORATIONS Number 80 88 46 •In thousands of dollars. CORPORATION CHARTER$ ISSUED BY CAPITALIZATION louree: Secreta!7 of State Percent change Nov. 1948 Nov. 1948Nov. Oct. N ov. from from Nov. 1947 Oct. 1948 Over $100,000 ___ Capitalization 1948 1948 1947 7 11 -36.4 + 16.7 $6,000--$100,000 135 140 164 -17.7 -3.6 Less than $5,000 _ _ 51 73 68 -19.0 -30.l No capital stock _ _ 31 33 46 -32.6 -6.1 Capitalization not specified -----4 2 4 0.0 + loo.o fewer in number, the corporations chartered this month had a considerably larger capitalization than those charte:~d in O?t?~er. Those organized to carry on mer· chand1smg act1v1hes accounted for almost one-third of the new corporations. Busineaa Failures (The number of fallurea and the am-t of liabWtl• ....., la· veraely wltb the prosperity of bu1lneH and reflect In a almpl. and direct manner what la happenln• to buainHa.) Nine business failures were reported by Dun and Bradstreet in November, as compared with seven in October and only three in November 1947. Total liabili­ties were lowest for any month since May of this year. BUSINESS FAILURES Source: Dun and Bradstreet, Inc. Nov. 1948 Oct. 1948 Nov. 1947 Oct. 1947 N umber -------­9 Liabilities• -----$295 7 $373 3 $ 41 7 $ 96 Average liabilities per failure• - --- ----­ $ 33 $ 53 $ 14 $ 14 •In thousands of dollars. Life Insurance Salea (Since tba •alee of life lnaurance are relatlnl:r aenaltlve to th• chanirea In C-•umer Income, they ma:r be uaed u a m_.ure ef tM conaumw market.) Sales of ordinary life insurance increased in Texas as well as in the entire nation during November, the rates of increase in Texas being somewhat greater than for the nation as a whole. Sales in Texas were somewhat above a year ago, while sales in the United States as a whole were down considerably from November a year ago. Despite efforts to sell an increasing volume of United States savings bonds to the general public in Texas, sales fell 7.5% for the month and 14.7% for the 12-month interval. The lag in life insurance sales may be attributed to the same underlying factors. SALES OF UNITED STATES SAVINGS BONDS Source: Treaaury Department, Oftl.oe o! State Director for Tt!IDI Percent chanire Series November 1948 October 1948 Nov. 1948 Nov. 1948 November from from 1947 N ov. 1947 Oct. 1948 TOTAL -----$11,591,321 $12,526,633 $13,588,221 -14.7 -7.5 SHies E --- - 9,021,194 9,539,673 9,305,382 - 3.1 - 6.4 Series F and G _ 2,570,127 2,986,960 4,282,839 -40.0 -14.0 TEXAS BUSINESS REVIEW TRANSPORTATION Rail ('l'lie movement of 1rood1 by rail 11 fundameatal to all ltu11D..1 .....d-1, and chanireo In the number of frelirht caro 1-ded reflect ~cbanps In the volume of bualnea1. The commodity llTOUpe are llplficant for the Information they give on specific lndu1trle1. The ..i-11aneou1 &TDUP lncludeo manufactured 1rood1 and 11 irenerally -•idered a measure of the volume ef trade. Merchandlae l.c.l. Ulpmenta include the same type of goods shipped in smaller Iota.) The 286,770 cars of revenue freight loaded in the Southwestern district in November was 11.1 % under October and 8.5% under November 1947. Only the movement of coke (982 cars) showed a gain in November as compared with October. The Bureau's index of mis­cellaneous freight car loadings was down from 162.5 to 154.5, a decline of 4.9%. Compared with November 1947, it was up 1.2%. The index is corrected for seas­onal variation. REVENUE FREIGHT LOADED IN SOtrrHWESTERN DISTRICT (In carloads) Source: Car Service Division, Association of American Railroads P ercent change Item N ov. 1948 Oct . 1948 Nov. 1947 Nov. 1948 Nov. 1948 from from Nov. 1947 Oct. 1948 322,707 313,299 -8.5 -11.1 T01AL -------286,770 Grain and grain products 26,069 28,388 26,378 - 1.2 - 8.2 Livestock 5,297 7,682 7,989 -33.7 -31.0 Coal -------22,434 25,593 30,264 -25.9 - 12.3 0.-ke 982 939 823 +19.3 + 4.6 Forest products 18,931 22,145 22,173 -14.6 -14.5 Ore -·---·-----­ 2,621 2,775 2,477 + 5.8 -5.5 Merchandise (I.e.!.) -­ 26,745 30,742 31,269 -14.5 -13.0 )faeellaneous - - --­183,689 204,448 191,926 - 4.8 -10.2 Two Texas cities that are getting new passenger stations are Lon1~view and Austin. The Texas and Pacific is to construct a new modern station at Longview, and con­tracts have been let by the Missouri Pacific for a new station at Austin. With the completion of the new Austin station Missouri Pacific trains will no longer have to back into the station. The Missouri Pacific has discontinued trains Nos. 37 and 38 between San Antonio and Laredo. To assure adequate sen•ice during the vegetable marketing season, the railroad will add baggage cars to local freight trains. The Texas Electric Railway Company has been author· ized by the Interstate Commerce Commission to abandon its 174 mile svstem between Waco and Denison. Texas. Service will be discontinued on December 31 if no purchaser comes forward to operate it. A subsidiary of the companv will begin operation of motor bus service between Dallas and Waco on January 1, 1949. Motor (Althouirb current r"ata on trends In Texas motor tr&n•~atfon are not available, d• velopmentl in thi1 Important segment of tlae transportation Indus cry are part of the business picture.) The Americ; n Trucking Association index of the volume of mot ir freight handled reached 255 in October. This represen'.ed an increase of seven points over the September figure and ten points above October 1947. The index is compiled on the basis of the average monthly tonnage of reporting rarriers, and at 255 stood at a new all-time high. About 83% of the total tonnage handled was reported by the carriers of general frei!!ht. The transportation of petroleum produ~ts accounted for 8% of the total. Air (The total volume of commodltlee 1blP1MHI by air n:prH• l• -1,. • ......,. small percent•ir• ef all eommodlttee moYed, but the rapid lner•H In tlte uoe of tbla type of transportation makH Its &TDwth of 1'1tnenl htt..,..1t to bualne11.) The 26.~87 air e.-r-press shipments in Texas in Novem­ber wa5 9.1 % less than the number of shipments in October. It was 11.0% less than November 1947. Since early results of the recentlv inaugurated air parcel post service have been disappointing, it is probable that the decline in air express shipme~ts was due to other causes. The CAB has offered Pioneer Airlines an increase in air mail pay retroaetive to Mav 1. It is estimated that the new rate will yield the companv a mail pav revenue of $1,760,000 a year. The rate of pav is based on a AIR EXPRESS SHIPMENTS Sonrce: Rafiway Expreea Agency P ercent change City Nov. 1948 Oct. 1948 N ov. 1947 Nov. 1948 Nov. 1948 from from Nov. 1947 Oct. 1948 TOTAL -----26,387 29,038 29,664 .!... 11.0 -9.1 Abilene ------­ 166 203 185 - 10.3 -18.2 Amarillo -·---­ 450 586 577 - 22.0 -23.2 Austin -­---­ 502 563 563 - 10.8 -10.8 Beaumont -----­ 321 391 358 - 10.3 -17.9 Big Spring ---­ 47 77 54 -18.0 -89.0 Brownsville --­ 469 428 1,831 -74.4 + 9.6 Brownwood ----­ 45 42 32 + 40.6 + 7.1 Bryan --·--­ 25 87 24 + 4.2 - 82.4 Ccrpua Christi -­ 537 556 588 8.7 - 8.4 Dollas ----­ 9,708 10,747 9,525 + 1.9 - 9.7 Engle P ass -·­--24 El P aso --­---1,201 F ort Stockton -­19 13 1,501 20 1,669 • -28.0 + 84.6 -20.0 -5.0 F ort W orth ---­ 1,979 1,795 1,839 + 7.6 + 10.3 Galveston ---­ 834 337 379 - 11.9 - 0.9 H ouston ----­ 4,881 5,632 5,413 -10.8 -14.2 La~edo -­--··­- - 251 260 295 - 14.9 - 8.5 L c. ngview ---·­ 181 214 135 + 84.l - 15.4 Lubbock ·­ ---­ 402 360 359 + 12.0 + 11.7 Midland -----­ 222 281 209 + 6.2 - 8.9 Mineral Wells -­ 36 21 16 +125.0 + 71.4 Odessa -----­ 217 206 182 + 19.2 + 5.3 P nlestine --··-­ 9 15 19 - 52.6 - 40.0 Paris Plainview 29 51 52 52 47 • - 38.3 - 44.2 1.9 P ort Arthur 201 202 198 + 1.5 0.5 Sar. San Angelo --­Antonio --­ 463 2,291 447 2,504 678 3,386 -31.7 -32.3 + 8.6 8.5 Sweetwater --­ 29 16 37 -21.6 + 81.3 Temple Texarkana ---­ 56 78 70 19 77 103 -27.3 -24.3 -20.0 +310.5 T yler -----­Victoria --­-­ 228 44 437 36 397 19 -42.6 + 131.6 -47.8 + 22.2 W aco --­----·-­Wichita Falls --­ 202 347 265 377 224 246 -+ 9.8 41.l -23.8 -8.0 Other 892 326 0 + 20.2 •Air exPl'esS service originated at a later date. sliding scale starting at 48c per plane mile flown, if the passenger load factor is less than 31 %. This continues the Board's practice of setting mail pay on an incentive basis. Pioneer is the first of the so-called "feeder" air­lines. The renewal of its certificate comes up for con­sideration during the next 12 months. Another local service airline, Trans-Texas, has inaugu­rated service between Houston and Uvalde. San Antonio and Victoria are served as intermediate points. Clearing and drainage has begun for the site of Fort Worth's new Midway Airport. Water (Since a elsable •olame of traftic mov.. Into ud out ef the Stat• ltJ' -t•r, atatlatlca on -ter-borne commerce are an Important In· clleator not -1,, of tranaportatton but of seneral bualneaa acttvlt,..) The number of export and coastal cars unloaded at Texas ports increased 5.5% in November as compared with October. This gain was a much smaller increase than the 9.4% registered in November 1947 over October 1947. However, the unloadings in November this year was 9.3% greater than November 1947. The increase of November over October is explained by the fact that each of the two largest Texas _ports, Galveston and Houston, had an increase of 13.6%. The Port of Houston continued to show a big increase in volume this year as compared with last. Tonnage for the first ten months this year was 21 % above the same period last year. Through October the total tonnage handled was 33,820,509. At some time during the month of November the accumulated tonnage exceeded the total of 34,143,177 for the entire year 1947. On the basis of the value of the shipments moving through the Port of Houston for the first nine months of 1948, the total for the year will exceed one billion dollars for the first time in history. This total will be more than one-third the value handled in 1947. EXPORT AND COASTAL CARS UNLOADED• Source: Car Service Division, Aa•oclatlon of American Railroads Percent change Port Nov. 1948 Oct. 1948 Nov. 1947 I\ov. 19,~8 Nov. 1948 from from Nov. 1947 Oct. 19'1,8 TOTAL ·-·-··-·-·-17,808 16,873 16,288 + 9.3 + 5.6 Beaumont ------------­ 427 468 540 - 20.9 - 8.8 Port Arthur ···­·····-··· 834 1,252 1,052 - 20.7 - 33.4 '11eras City -----------­ 263 560 400 - 34.3 - G3.0 H ouston -------------­ 5,680 4,998 4,279 + 32.7 + 13.6 Galveston -··-·-·-·-·· 10,458 9,204 9,660 + 8.3 + 13.6 Brownsville --------­ 146 391 857 - 59.1 - 62.7 •Exclnding coal. WATER-BORNE COMMERCE AT TEXAS PORTS (tone) Percent cha nge Nov. 1948 Nov. 1948 Port N ov. 1948 Oct. 1948 N ov. 1947 from N ov. 1947 from Oct. 1948 TOTAL ·-·-···-·­1,533,776 1,780,611 1,816,722 -15.6 -13.9 Beaumont ··-·-·-· 20,095 19,844 23,382 -14.1 + 1.3 Brownsville --···-· 50,148 104,204 95,490 -47.5 -51.9 Corpus Christi• .. 1,463,533 1,656,563 1,697,550 -13.8 -11.7 •Excludes lngleaide. LABOR Employment (EmplO)'Dlent atettatlca are amons the moat Important lncllca19n of Texaa bualneaa and economic actlvlt,.. The nttmatea of total ­ployment In Tau Include aU -plo,,_, both production worbn and othera, but uclude proprietors, ofllcera of corporattona, ... other principal uecutlvea. Mora deta.lled atatlattca on Tnu em• plo,,ment, p&J' rolla, houn, •mlnsa, end man-bonra are analJ'Hll In a .Supplement to the Review on Texa1 EmplO)'met and r., Rolla.) The Bureau of Business Research in cooperation with the Bureau of Labor Statistics reports that nonagricul­tural employment in Texas was up by ·0.8% or 15,000 persons in November 1948. There were 93,000 more people employed in nonagricultural jobs than were em· ployed a year ago. The newspaper caption, "Employment Edges Upward," describes well the employment picture in almost every section of Texas for November 1948. Again old employ­ment records have been surpassed in many industries. Manufacturing employment in both durable and non­durable goods was up for the month. Lumber and timber manufacturing suffered a seasonal employment decline of 2.1 %. "Other" durable goods dropped 3.0% for the period. Employment in nondurable goods production dropped 2.1 % in the apparel industry and 7.0% in "other" nondurable goods. All other of the nondurable goods categories held steady or increased in employment for November. . CHANGES IN PRODUCTION WORKER PAY ROLLS IN SPECIFIED INDUSTRIES• Source: Bureau of Business Research In cooperation with the Bureau ct Labor Statistics, U.S. Department of Labor Number Percent change of -------­ reporting Nov. 1948 Nov. 1948 establish­from from Industry ments Nov. 1947 Oct. 1948 MANUFACTURlNG Durable goods: Iron and steel 26 5.0 1.8 Machinery, except electrical -·----29 +26.5 -8.2 Nonferrous metals 1.6 --------------------+ + -------------11 +17.1 + Lumber and timber 15 ------ -----------+ 9.5 -9.0 Furniture and finished lumber ··-----22 -4.7 -1.0 Stone, clay, and glass -----------82 + 0.1 -8.1 Other durable goods -------------7 +43.4 . + 1.1 N ondurable goods: Textiles ----------------------------15 + 8.0 + 8.1 Apparel ---------------------------25 -14.9 -0.6 Food ---------------------96 + 1.9 + 6.8 Paper + ------------------------------15 +16.2 8.7 ----------------+ Printing and publishing 81 9.0 -2.6 Chemicals ----------------------58 +26.4 + 0.4 P etroleum refining -----------------28 + 8.0 -1.8 Other nondurable goods 4 -27.8 -12.2 NONMANUFACTURlNG Crude petroleum production ----85 +14.8 -0.1 H otels t --------9 + 7.4i + o.ei I nsurancet ---------·------------78 + 9.8 + 2.1 Public utilities --------------------141 +27.1 + 8.1 Quarrying -----------------------·--lt +18.2 + 8.8 Wholesale tradet ------------·-12~ +17.5 + 7.5 Retail tradet 292 + + 0.7 ·------------------------------7.3 \ ' t Figures cover all employees except propri~tors, firm members, officers of corporations, or other principal execut'\ves. icash payments only; the additional value of bo1rd, room, and tips cannot be computed. •Preliminary. TEXAS BUSINESS REVIEW Nonmanufacturing employment reports m November were good. Mininir indicated no change, while trans· portation and public utilities showed an insignificanto.8% employment decline for interstate railroads. Tele­phone and telel:!raph concerns employed 4.1 % more people in November than in October. Trade gained 2.8% l!STDIATI'.5 OP NONAGRICULTURAL E.MPLOYMJ!.MT IN TEXAS• (In thouaands) Soaree: Bureau of Bu•lneu Research In cooperation with Bureau of Labor Statistics, U.S. Dep&rtment of Labor Percent change Nov. 1948 Nov. 1948 Nov.t Oct. Nov. from from 194 1948 1947 Nov. 1947 Oct. 1948 lndmtry TOTAL _____ _ J,782.5 l,767.5 1,689.5 + 5.5 + 0.8 352.8 347.6 + 2.8 + 1.3 )(anu!acturing 367 .4 149.5 139.1 + 7.7 + 0.8 Durable goods ---H9.8 203.3 208.5 -0.4 + 2.1 Nondurable goods --2C>7.6 Sonmanufacturing ___l ,425.1 1,414.7 1,341.9 + 6.2 + 0.7 20.6 20.6 19.3 + 6.7 0.0 Iron and steel ---­33.1 33.1 30.6 + 8.2 0.0 ll&chinuY, except electrical Tramportation equipment, 28.0 24.7 + 17.0 +urxcept automobile -­Z8.9 11.2 9.2 + 21.7 + 0.9 11..! Nonfurom metals --­ 82.7 33.4 81.0 + 5.5 -2.1 Lumber and timber -­ 10.7 -7.8 + 0.9 10.6 11.6 FurnituH 9.4 9.3 9.5 -1.1 +uStone, clay, and glass ­0.0 -s.o S.8 3.2 3.2 Other durable gooods 10.s 10.1 9.6 + 7.8 + 2.0 Tntilel -2.1 Appa.rel 28.1 28.7 27.5 + 2.2 78.3 -4.4 + 7.2 68.4 76.7 Food 3.8 8.8 3.7 + 2.7 0.0 Paper and allied products­20.1 20.0 19.7 + 2.0 + 0.5 Printing and publishing ­26.4 26.2 23.7 +11.4 + 0.8 Cbemice.1' -----­0.0 39.0 39.0 87.4 + 4.3 Petroleum 7.1 10.Z -35.3 -7.0 6.6 OtMr nondurable goods ­0.0 +n.5 100.7 90.3 100.7 )lining ------­Crude petrolenm and nat­0.0 94.0 84.0 +n.9 94.0 ural ga.!I production ­6.7 6.7 6.3 +u 0.0 Other mining ---­Transportation and public 232.3 227.8 217.9 + 6.6 + 2.0 utilities -0.8 lnterstate railroads -­ 65.5 67.8 -4.1 65.0 34.4 31.2 +14.7 + 4.1 Telephone and telegraph 35.8 Other transportation and 12'7.9 118.9 +lo.6 + 2.8 public utilities ---131.5 Trade 414.2 408.1 410.2 + 1.0 + 2.8 Wbolesa.le 125.1 113.6 119.6 + 4.6 +10.1 -0.5 -0.1 289.5 290.6 General merchandise _ 64.8 64 .1 65.7 -1.4 +u Raail 289.1 - Food and liquor __ 37.5 38.0 40.2 -6.7 1.3 Automotive 22 .8 22.9 24.3 6.2 0.4 Apparel 28.1 26.3 24.9 +12.9 + 6.8 Otber retail trade --135.9 138.2 135.5 + 0.3 -1.7 Finance and service __ 302.4 305.7 280.3 + 7.9 -1.1 Bank and trust companies 19.5 19.5 17.6 +l0.8 0.0 lnsurance 24.9 24.7 24.4 + 2.0 + 0.8 Real estate and other financial agencies --27.4 27.6 23.3 +17.6 -0.7 Hotels 23.8 23.8 24.4 -2.5 0.0 Other personal services _ 48.4 48.9 50.1 -3.4 -1.0 Medical services ---32. 7 33.0 28.9 + 13.1 -0.9 Other business and professional services _ 125.7 128.2 111.6 +12.6 -2.0 Government ----255.1 257.6 242.8 + 5.1 -1.0 •Totals include classifications other than those listed. tpre]iminary. in employment in November. Leader in the trade classifi­cation was wholesale trade with a jump of 10.11/r. Al­thouµ:h retail trade employment declined for the month, emplovment for the Christmas rush should be up in December. Finance and service establishments hired fewer people in November than in October. Most of the decline came in real estate, finance, and in personal and professional services. Government employment declined 1.0% for November. Nondurable goods manufacturing alone among the major classifications showed an employment decline from November 1947. Employment estimates indicate a continuing rise until the first of the year. There are signs that extended and increasing defense activity and a possible European arms aid program will underwrite and cushion somewhat the usual seasonal decline in employment after the turn of the year. Pay Rolla (Pay rell 61r11"" are ...-ii,. recopb.. M etpl8-t Wt.a­ tara af hu:aaa a.4 purchulas pawar "7 ktla -..t•t• _,. ...... ...am--Empbaala -tlut aalatnaaca af purchulq ..,.. u a s-1 for tlut c-ntry'a poahrar ecan_,-sf 52,050 Fo.>t Worth --136,500 ,050 52,.300 236,000 51,~SO 135,900 69, 69 49,330 224,965 50,'I 0 133,372 ++ '1.9 + 6.1 + 2 .. 5 + 2.3 -1.4 +L +u + 1..2 + OA Galveston-Texas City -­ 54,600 &4,600 57,863 - 5.6 0.0 Homton­ B&;town --­[..,~""'--­Lubbock San Angelo -­San Antonio __ Ten.rb.na -­ 32.5,.200 22,52~ 2 ,100 17,540 15 00 35,350 3:i4,40-0 22,. 50 26,T25 17,S2-5 15 ,100 35,150 300. 65 22~5&4 2-5,.293 16,06 156,374 32,6 7 + .1 -OJ~ + .1 + 9.2 + L.2 + .1 0.2 -l.4 + lA + 1..2 + 0.1 + 0.6 Waco Wichita Pall; - 46,100 32,565 46,000 32,320 46,726 29, 6 -1.3 + 9.4 + 0..2 + 0. Placement. (TM __.... of p&acom-ta ...,.ortM by tho Taaa E.m.ploym-t C-'e-. t.dlca-.--.hl7 tU relati..ahtp of the •UJlt'b' of and ... ...._. for joM In Yal"loaa parta of tho State. Placementa do • ...,.,... prhato placom-ta la baatao.a aad l:Dduatry, but Ollly ......... u.r-p tho State E.mplaym-t Sa-nc.. FID'thermaro, ... _. of placemeata mad. aloouW DOt bo ~u adcll· ..... ta tetal -'-Fm-t, aiJoa ~of ta-.....-zat ab.lfta !Tom -....._......) Placemenl acti,itY in the 17 labor market areas of Texas serred bY the.Texas Employment Commission was down 5.6% in :\'ovem.ber 1948 from :\'ovember 194 I. and down 16.6fc from October 1948. Total placemen~ in NoYember 1948 were 27,400. In ,·iew of the fact that some forecasters belie\'e that ,;upply is catchin~ up with demand, and that a return to a buYer"s market will mean increased unemployment, the placement index will henceforth be an important gauge for the T rxa5 bu5ine,;5man to watch. Because of the type of indu5try in the State. employment should continue at a high Je,·el for many months to come; how· e\·er, t.he fir;t to ;eek job; during periods of stress are the unskilled and semi-skilled workers who ordinarilY use the employment agencies more than skilled and profe,;sional worker;. Continued declines in placement acti\'ity, with a corre5ponding leYeling of employment and unemployment figures, would indicate an optimum labor force under present conditions. Anv sharp increase in placement figures, with a corresponding decrease lthough not necessarih· abrupt) of employment and an increase in unemployment, would be a sign of retrench­ ment bY business within the State. Such indicators would be extr~mely important to marginal manufacturing indus· tries and to sen·ice and nonmanufacturing concerns. PLACEM.LNTS lN DlPLOYM:ENT Sonrce: T~Employment Commiulon P erce.nt cha.n1re A.rea Nov. 194 Oct. 194 ov. 1947 Nov. 194 Nov. 194 from from ov. 1947 Oct. 1948 TOTAL 27,400 32,S33 29,017 -5.6 -16.6 Ahilene -----­ 613 48 576 + 6.4 +25.6 Amarillo 7 1,37 914 - 7.3 ~ .5 Austin 991 l,232 1,02 - 3.6 -19.6 Beaumont-Port Arthur_ 2,070 2,050 2,545 -1 .7 + 1.0 Corpns Chris i 1,.29 1,451 l,027 +19.6 -15.4 Dallas 4,959 6, 60 4,606 + 7.7 -27.7 El P aso l,207 1,109 32 -f-45.l + .8 Fort Worth 4,029 4,225 4,21 - 4.5 - 4.6 Galveston-Te..-ras it:y - 591 65 91 -33.7 ~l.7 Honstan-Baytown 4,311 5,79-7 5,165 -16.5 -25.6 Longnew 520 4 5 706 -26.3 + 7.2 Luhhock 7 3 30 '122 + 8.4 - 5.7 San A.nge]o 4-47 531 405 +10.4 -15. San Antonio 2, l 3,224 3,307 -12.9 -10.6 T exarkana 610 715 55 -2 .7 -14.7 Waco 631 818 704 - 10.4 -22.9 W ic.h.ita Falls 682 '1'15 516 +a2.2 -12.0 lnduatria.l Relationa (A knowled6• of CUJTallt cleYelopmftta In bacluatrtal l'Wt'-a lo nee:......,. to an wocl.....tan~ of the Stat•'• labor pktaro.) In addition to centering attention on Washington and the Taft-Hartley law, labor will be busy the next few months in stale capitals where legislatirn sessions are scheduled. The aims are: tl) to get laws restricting unions off statute books in at least 34. states and to pass other laws backed by labor, and (2) to maintain union political unity for elections coming in 1950 and 1952 . The repeal obj~ctiws for state laws include such pro­Yi5ions as: bans on closed-sl10p and union-shop contracts and on union checkoff dues: curbs on mass picketing, boycotts, and jurisdictional strikes: requirements of union registration and reports; and requirements for delaYs in strike action in some or all industries. How succ~ssful the program will be may be measured some­what bv succes5es of candidates for state legislatures and gubernatorial positions. Man-hours (The reports which the Bureau receives on employment include every employee who worked any part of the week nearest the fif­teenth of the month. This means that changes i,n the number of employees in an industry do not alweys measure the changes In the volume of output. Changes in the number of man-laoure worked, however, are closely associated with the rate of manufacturing activity, and may be used as a measure of the volume of pro­duction.) Activity in Texas manufacturing plants increased 0.8% from October to November, measured by man-hours worked. The largest increase, 6.5%, was in the food industry although "other" durable goods, and paper and allied products registered appreciable gains. MAN-HOURS WORKED IN MANUFACTURING ESTABLISHMENTS* Source: Bureau of Business Research in cooperation with the Bureau of Labor Statistics, U.S. Department of Labor Number of Percent change reporting Nov. 1948 Nov. 1948 establish­ from from Industry ments Nov. 1947 Oct. 1948 TOTAL 384 ----------·----------------------­ Durable gooods: Iron and steel 26 Machinery, except electrical 29 Nonferrous metals 11 Lumber and· timber --------------------------------- 15 Furniture and finished lumber 21 Stone, clay, and glass -----------------31 Other durable goods ----------­ ------6 Nondurable goods: Textiles 12 Apparel 23 ---·-----------­ Food 84 Paper and allied products 7 Printing and publishing 29 Chemicals 57 Petroleum ---------------------29 Other nondurable goods 4 ·---------------­ 4.3 0.8 + + 3.3 1.9 + + + 16.8 -2.0 + + 5.8 0.5 + 1.9 -7.1 + 16.2 -1.5 -5.5 -2.5 +au + 4.1 + 5.0 -0.5 -12.8 + 0.8 -5.0 + 6.5 + 6.7 + 3.5 + 0.2 -1.4 + 14.0 -0.1 -8.7 -1.6 -33.8 -4.8 *P reliminary. The yearly gains were more favorable in total but showed wider fluctuations from industry to industry. "Other" durable goods registered a gain of 34.1%, while man-hours in apparel were down 12.8% and in "other" nondurable goods 33.8%. GOVERNMENT Federal Finance (Federal collectlona of lncom., pay roll, and u:d.. tu" 'nJ7 directly with the level of buelneH proaperlty. During the war ,erlod federal taxatloa hall llkewlH become an Important determl· nant of general buelnesa activity.) Revenue collections of the federal government from Texas districts showed an increase of more than enough to effect last month's decline. Revenue from the Second District (North Texas) was up almost a fourth, while revenue from the First District (South Texas) rose only slightly. The poorer showing of the First District resulted from the fact that revenue from income taxes was only half the figure for a year ago. All other classifications showed sizeable increases which resulted in an over-all increase of around 5% for the First District. Though revenue from income taxes increased slightly in the Second District, the greatest increase here was from employment taxes which rose more than 80%. Revenue for the first five months of the fiscal year showed an increase of 9.9% over the corresponding period a year ago. The increase for this period last year over the same period two years ago was 12.1%. This rise would seem to indicate that the rate of increase in government revenues has not declined significantly in the past year. There seems to be growing sentiment in Congress for a tax advance; however, as yet there seems to be no general agreement as to where the burden should fall. The recent profits hearing still leaves unsettled the question of whether or not business profits have been excessive. Even those who hold that profits have been too high are not certain as to whether additional revenue should be garnered from the excess profits tax or an increase in the regular corporate income tax rates. Still others would prefer to allocate part of the increase burden to individuals, if wages continue to go up. FEDEltAL INTERNAL UVENUE COU.ECTIONS 8oaree: Of!IOll al. tlui Collector, lnWnlal Rennue SerYlce, Treaauzy Depa.rtme11t July 1-November 30 November Dliltrict 1948 1947 Percent change 1948-49 1947-48 Percent change TEXAS -·--------------­$ 78,189,697 $ 69,478,168 + 12.5 $417,318,982 $379,792,990 + 9.9 Income ------------­--­Employment --------­----·­Withholding __________..___ Other ---·----·-········-·-·----­ 15,060,295 10,281,527 36,037,032 16,810,842 20,766,964 6,579,382 30,626,603 11,505,219 -27.5 + 56.3 + 17.7 + 46.1 181,439,948 31,629,023 130,205,065 74,044,946 161,804,920 25,780,746 130,165,802 62,041,522 + 12.1 + 22.7 + 0.03 + 19.3 FIRST DISTRICT ----·----·-·----­Income -----------------­----------­ 41,542,242 6,718,560 39,640,540 13,172,058 + 4.8 -49.0 226,693,561 101,590,976 205,793,867 90,121,601 + 10.2 + 12.7 E mployment ·-----··---­·-­------· Withholding -------­--­-·­ 4,143,034 21,477,744 3,202,211 17,200,858 + 29.4 + 24.9 13,818,291 70,995,482 12,038,584 70,423,039 + 14.8 + 0.8 Other ·----··-·------·­-------­ 9,202,903 6,065,413 + 51.7 40,288,811 33,210,643 + 21.3 SECOND DISTRICT ------····-----­Income -----------------­Employment --------------­ 36,647,455 8,341,785 6,138,493 29,887,628 7,594,906 3,377,171 + 22.8 + 9.8 + 81.8 190,625,422 79,838,972 17,810,781 173,999,124 71 ,683,319 13,742,162 + 9.6 + 11.4 + 29.6 Withholding ---------··-·--··..-­Other --­-----­ 14,559,288 7,607,939 13,425,745 5,439,806 + 8.4 + 89.9 59,209,583 33,756,135 59,742,763 28,830,880 -0.9 + 17.1 TEXAS BUSINESS REVIEW State Finance (!tatl1tlu on State finance ere cloHl1' c-neet..t wtt" chMa... la 61 lnel of bu1lneH acthrlt,.. State occupat'-product!-aM, .. ..i.. tase1 and llcenae f-v...,. direct!,. witll clluair!ns ~I­-condltlona.) Total revenue receipts of the State, as reported bv the State Comptroller, for N0Yer>1ber were somewhat ~hove last month's and also siimificantly above the recPipts for November of last year. Receipts for the first thrPe months of the current fiscal .-ear are 10.3% above the corr~ponding . period a vear ago. Though revenue rere1pts are still on the increase, this rise would seem tJ indicate that the rate of increase has significantly l~ned since last year. The current 10% increase is ~ell belov.• the 30% fornre of last vear. On the basis of individual .revenue sources, it seem!' that onlv crude oil production taxes are increasing at a rate nearly as high as they did last year. Receipts from ad valorem taxes for the first three months of the fi~cal year were down 97.4% from the same period last year, whereas last vear's figure had been 48.9% above the rorresponding period two years ago. The ad valorem tax is not sufficiently elastic to provide sufficient revenue in periods of inflation. This fact is re.;ponsible for the failure of many municipal govern­ments, who for the most part have been left by tlic State with the ad valorem tax as their only source of t'lX revenue, to meet their needs out of their current income. The State has been more fortunate to date in that the ad valorem tax is no longer its main source of reYenue and several of its now important sources, such as th·~ production and motor fuel taxes, have been sufficiently elastic in their vield to provide increasing revenue. The situation. facing the State at present is somewlut the same as has confronted the municipalities for several vears. However, municipal government, particularly the larger cities who are the hardest hit, are hopine: to obtain some relief by means of a grant or rebate on State taxes. REVENUE RECEIPTS OF STATE COMPTROLLER Source : State Comptroller of Public Account.a September 1-November 30 November Percent Item 1948 1948-49 1947-48 cbange TOTAL ____$ 51,255,362 $129,476,055 $117,352,290 + 10.3 0 165,751 6,289,567 8,789,939 24,951,667 17,469,964 6,114,442 18,258,729 17,331,166 1,885,976 5,778,443 5,518,849 532,216 917,201 192,895 192,929 1,308,743 1,085,494 8,232,002 2,669,763 11,419,037 8,516,901 11,125,130 9,164,172 + 2.6 -7.1 5,715,265 17,462,224 13,236,265 + 31.9 2,899,384 5,791,992 4,471,968 + 29.5 3,965,144 10,258,302 6,634,771 28,270,596 5,638,302 25,828,518 + 17.7 + 9.5 PRICES Consumers' Prices (All Income flsur" mu1t be u1ed In connection wftll a ......ur1 of ci....s• In con1umer1' prtc11, 1lnc1 the purcbaalns power of In­come 11 more •l•nlfleant tbua tile air•reirate amount In dollare Tbe lncreaalnir COit of 11"1n•, H meaour..t by lnde:1:e1 of con1u;..er1' prlc•, 11 of Yitai Importance to all hu1lnenmen and con1umera.) How,ewives in Houston enjoved sliirhtlv lower prices for the second consecutive month accoroing to the index of cnnsum.as' prices of the Bureau of L~hor Statistics. On November 15, the index stood at 173.9 which was 0.5% below the level for Octoher. but was still above tht" November )947 figure by 4.9%. Fooo prices which -decli~ed l.4% from October to November indicated the biggest drop. Apparel prices were off 0.4%. Rent prices which were surveyed for the first time since August showed an increase of 0.3% over those prevailing last summer and an increase of 4.1 % when compared with rents in November 1947. Slie:h.t rises in prices were recorlPrtricity, and ice, up 0.1 % and for miscellaneous, up 0.4%. Houston prices continue to run below those for the nation as a whole. A late release of the Bureau of Labor Statistics states that in October the national index of consumers' prices stood at 211.5, while at the same time the Houston index was only 174.7. Both indexes have the same base (1935-39 = 100). However, prict>s over the whole country declined 1.7% from September to October, while those in Houston alone dropped off by only 0.4%. It is to be doubted that the two-month downward move­ment of consum.er prices indicates the beginning of long­range trend. Nmety percent parity payments to farmers will continue through 1949 and, with the exception of meat, few commodities are selling at prices much above the parity levels. Automobile makers anticipate continued high prices for their products, though "new-used" cars are selling for less of a premium than they did last summer. Higher telephone rates seem to be in prospect for Austin and some other Texas cities. Nevertheless, the lower level of Christmas sales, in­creased buyer~' resistance to high prices in many lines, plus actual pnce cuts, such as the one recently announced by the two largest soap producers, presage a continued leveling of the previous inflationary tendencies. The future trend in consumers' prices will undoubtedly have a profound bearing upon business in 1949. INDEXES OF CONSUMERS' PRICES IN HOUSTON (193'-39 =100) Source: Bureau of Labor Statistics, U.S. Department of Labor Percent change Nov. 1948 Nov. 1948 Nov. Oct. Nov. from from Group 1948 1948 1947 Nov. 1947 Oct. 1948 ALL ITEMS -----------­173.9 174.7 165.8 + 4.9 -0.5 Food -----------·---­ 217.6 220.8 210.2 + 3.5 -1.4 Apparel Rent ------­212.3 ----­121.5 213.1 198.7 116.7 + 6.8 + 4.1 -0.4 Fuel, elec.tricity, and ice __ 99.7 99.6 94.3 + 5.7 + 0.1 Housefurniahinga -··--··--198.8 198.8 190.6 + 4.3 0.0 Miscellaneous ------­153.5 152.9 144.5 + 6.2 + 0.4 •Not surveyed. TEXAS BUSINESS REVIEW Wholesale Prices (Claang.. In the prlcea of commodltlea are of fundamental Im· portance to bualneumen, since the level of prices has an Important effect on profits. The lnde" of wholesale prices complied b1 the United States Bureau of Labor Statistics la the moat comprebenalve measure of price changes published In the United Statea.) The new revised index of wholesale prices of the Bureau of Labor Statistics indicates a reversal of the downward trend that has been apparent for several months. The price level of all commodities was 0.5% higher on November 30 than it had been on November 2. The largest increase percentagewise was chalked up for farm products, 1.6%. Food prices rose 0.6% and textiles 0.1 %. All commodities other than farm products and foods were up 0.2%. Building materials prices remained stationary, while prices of hides and leather products declined by 0.5%. Looking to the future no clear cut trend is apparent. Higher postal rates beginning on January 1 will increase slightly the expenses of practically every business firm. The recent announcement of a January boost of tin-plate prices adds a bullish note to the picture. On the other hand, the situation in the petroleum industry is such that prices are tending to hold at present levels. Mild weather in the heating sections of the country have reduced fuel oil demand, while increased capacity and large inventories indicate ample supplies for the new year. INDEXES OF WHOLESALE PRICE.! IN THE UNITED STATES (1926 = 100) Source : Bureau of Labor Statistics, U.S. Department of Labor Percent change Group Nov. 30 1948 Nov. 2* 1948 Nov. 1948 Nov. 1948 Dec.2* from from 1947 Nov. 1947 Oct. 1948 ALL COMMODITIES __ 165.1 164.2 161.0 + 2.5 + 0.5 Farm products ---­179.4 176.5 192.6 - 6.9 + 1.6 Foods --­ 177.0 175.9 179.8 - 1.6 + 0.6 Hides and leather products 207.3 208.3 264.0 -21.5 -0.5 Textile products ---­147.0 146.8 146.3 + 0.5 + 0.1 Building materials ___ 203.2 203.3 187.8 + 8.2 0.0 All commodities other than farm products ---­134.5 134.5 187.4 - 2.1 0.0 All commodities other than farm products and foods 153.4 153.1 142.8 + 7.4 + 0.2 *Revised. 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 thi! publfcatfon Is not copyrighted and may be reproduced freely. AoknowledllJDent of source will be appreciated. Subecrlpt!on $2.00 per year. J. Anderson Fitzgerald Dean STAFF OF THE BUREAU OF BUSINESS RESEARCH Robert W . French John R. Stoekton A.. H . Chute Dirut01' Statistici<>n Retailitto Speciali8t Elsie Watt.rs Ruth Bruce Viola Garcia Research Supervisor Editvnal Aesista.i.t Publicationa A•Biatant Mary Ann Schneider Dorothy lCuley Secretaf'l/ Lt'"brary A•n•ta"t Richard Mollison J amee Tedford FTBncet1 Allen Ru•arch A..oc;ate Field R•,,,.e•entativ• Statistic<>l Aenstat1t Gerald Terry Martha Taylor Rachel Woodul Maroaret Hampton Sarah L. Siegel BLS Representatives Naomi Harney Special Reports Edit01' Research Assistant• Baaineu Research Coa~cil Robert W. French F. L. Cox (ex officio) E. T. Miller :r. Anderson 1"1tzgerald Everett G. Smith (ex officio) H . K. Snell Cooperating Faculty E . T. Miiier Ralph B. Tbomp•on G011ern,,...,.t Price• A. B. Cox Cotton C. E . MyenJ.t. H. Elwell H. K. Snell :r. D .Neal J ohn W . Gunter W. H. Watson Tramportation Foreion Trade Labor Asaistanta F orrest Adams, Laniere Adams, Curtis Arrington, Frances Bass, Cecil Bomar, H. N. Broom, Tommy Burris, Nuel Childs, Jack Clay, Bonnie Crossley, J ames N. F alzone, Kay Feagin, Leo Goodman, Carl Gromatzky, Richard Henshaw, Rex Hill, Betty Lou Hillman, Charles Hinkle, Audrey Jackson, Jerry Jackson, J oseph J ames, Calvin Jayroe, J ames Jeffrey, Marion Kull, Dale Levander, Robert Luter, Leland McCloud, Dale McGee, Nethery Marrow, Doris Morgan, Ruth O'Bryant, Shirley Pogson, Alma Rice, Mary Dell Shinn, J ohn Stephenson, Marjorie Supak, Florence Thomson, Clark Vinson, Marie Watkins, Buena Watt, Helen Sue Wilson, Annie Taylor. CONTENTS Highlights of Texas Businesq~-----------1 Figures for the Montu.._______ ________ 2 The Business Situation in Texas _____ ____ 3 Trade Retail Trade ---------------~ Wboleeale Trade •' For~ Trade Production ' Mauufactnrln1r Construction • • Public Utilitl.. 10 Natural Reeources 10 Agriculture Income 11 Marketlnp ----------------­ 11 Fertilizer Sales 13 P rices 11 Cold Stor&1re 11 Cotton 11 Local Business Conditions 14 Finance Bank Credit ----------------­ l'f Bank Debits 17 Busln.,.. Fallnree --------------­ 11 Corporation Charten 18 Lile IDBnranca Sal.. 11 Transportallon Rall 11 Motor 19 19.. Air -------------------­ Water Labor P ay Rolls 21 Employment 20 Placements 23 Unemployment 21 Man~hours 24 Industrial Relations 28 Labor Force -------------· 23 Government Federal Finance --------------­ M 16 State Finance ---------------­ Prices Consumers• Prices II Wboleeale Pries .. Figures for the Year to Date'---------­27 Barometers of Texas Business·----------28 3,193,580 3,221,395 0.9 186, 2 195,575 4.7 1984,676 1,909,319 3.9 + 287,361 281135 + 2.2 LABOR 1, 16,400 1,638,782 + 4.7 34 ,289 333,480 + 4.1 1,369111 1,305,302 4.9 + COVE.R.NMEN'T B.r mccipts af s te Cooµtrol!.er• ________________ 129,4 6,055 $ 117,352,290 + 10.3 $ 41 ,318 983 $ 379,792,990 9.9 r B-a1 i:n::e:roAl r=en: e collecriu=·i------------------$ + PRJCES I.n e.x af en. prices in Ho :o:n ( a · y &\er-age· 1935-39=100) ____ _ 1 4.2 160.0 + 8.9 2219 201.6 + 10.l lnde.x al food prices i:n Ho :o:o co ·thly nen.ge · ~100 ------­ FGU RES FOR THE YEAR TO DATE J anua.rr·.i o'lember 194 .f,,630 178 1 660,064.,000 7 .251000 663,433000 159,8#,000 40 536,000 $2,970,114,000 32 798,000 66,987, 362,1 ,000 281 736000 336,068,000 225.f,,OOO 235,310,000 217,329,000 40 442 000 62.1 53.1 34,176,118 3,419134 33,054,240 551,962 145,335 22415 1,137 631 571,421 206,837 $ 8 3,071,003 $ 336,893,492 $ 399146,032 19613 $ 7 ,444,466 ? 442699 Farm cub income ----------------------­ ·;rme:nu af li~ carloa.ds) ________________ _ 88,892 1,793 ·µe1l'ts o1 ~ ihe.II equinlenl ---------------­ :ue reoe:i t:t af ~at Te:iu st:atlanr (ihe.Il equivalent) _________ 301 "p:me-llts af poo.l.trr (ca:riGLda.J------------------204 . CE $ 39030,526 3,528 $ 550,206,801 75 nANSPORTATION Percent 1947 ~· 4,149,671,000 + 11.6 1,419 160 000 + 1 .0 667 ,662,000 + 19.3 56-,096,000 + 17.0 147,066 000 8.7 + 37,336,000 8.6 + 730,511000 8.8 + 304,998 000 7.5 + 67,873,000 -1.3 319,872 000 + 13.2 ,936,000 0.3 + 2.88,214 000 + 16.6 851626000 5.9 + 185,618,000 + 26.8 210,295,000 3.3 + 221,079,000 8.8 + 55.1 + 12.7 57.2 -7.2 $ 30040,303 + 13.8 3,055,128 + 11.9 31,832,296 3.8 + 477997 + 15.5 156,148 -6.9 19096 + 17.4 702,871 + 61.9 777,150 -26.5 213,704 -3.2 $ 585 401,810 + 49.1 $ 256,578,215 + 31.3 $ 303,964.,27 5 + 31.3 20,791 -5.7 $ 78,793,479 -1.7 2,216,468 + 10.2 119,401 -25.6 2,506 -28.5 283 6.4 + 353 -42.2 $ 32 441,355 + 20.3 2,946 + 19.8 $ 546,598,854 0.7 + 49 + 53.l TEXAS BUSINESS REVlEW BAROMETERS OF TEXAS BUSINE$~