Texas Business Review TEXAS BUSINESS REVIEW VOL. XLVIII, NO. 4, APRIL 1974 Editor, Robert H. Ryan Managing Editor, Kathleen Luft Editorial Board: Robert H. Ryan, Chairman; Stanley A. Arbingast ; John R. Stockton; Francis B. May; Robert B. Williamson; Kathleen Luft. CONTENTS ARTICLES 81 : The Business Situation in Texas, by Robert H. Ryan 86: Lignite: The Other Fuel of Texas, by William L. Fisher and William R. Kaiser 91 : Texas Construction, by Dianne Priddy TABLES 82: Indexes of Consumer Prices, U.S., Dallas, and Houston, Texas 83 : Selected Barometers of Texas Business 84: Nonagricultural Wage and Salary Estimates, Selected Labor Market Areas 85 : Business-Activity Indexes for Twenty Selected Texas Cities 88: Regional Compositional Variation of Texas Lignite 92: One-Family, Two-Family , and Apartment-Building Dwelling Units Authorized in Standard Metropoli­tan Statistical Areas, February 1974 93: Scope and Value of Remodeling Jobs 93 : Estimated Values of Building Authorized in Texas 94: Estimates of Nonagricultural Employment in Texas 95 : Local Business Conditions Barometers of Texas Business (inside back cover) CHARTS 81 : Texas Business Activity 82: Estimated Personal Income, Texas 82: Industrial Electric-Power Use, Texas 82: Residential Electric-Power Use, Texas 83 : Bank Debits, Texas 84: Industrial Production: Nondurable Manufactures, Texas 84 : Industrial Production: Durable Manufactures, Texas 91 : Crude-Oil Runs to Stills, Texas 91 : Total Unemployment, Texas 91: Total Building Authorized, Texas 93: Residential Building Authorized, Texas MAPS 87 : Texas Near-Surface Lignite 89: Texas Deep-Basin Lignite Published monthly by the Bureau of Business Research, Graduate School of Business, The University of Texas at Austin, Austin, Texas 78712 . Second-class postage paid at Austin, Texas. Content of this publication is not copyrighted and may be reproduced freely, but acknowledgment of source will be appreciated. The views expressed by authors are not necessarily those of the Bureau of Business Research. Subscription, $4.00 a year; individual copies 35 cents. BUREAU OF BUSINESS RESEARCH Business Research Council : Vernon M. Briggs, Darwin D. Klingman, George Kozmetsky, Albert Shapero, T. H. Williams Director: Stanley A. Arbingast Assistant Directors: Florence Escott, David L. Karney Statistician: John R. Stockton Consulting Statistician : Francis B. May Cooperating Faculty: C. P. Blair, Charles T. Clark, C. W. Clifton, Lawrence L. Crum, W. T. Fowler, Clark C. Gill, Robert K. Holz, David L. Huff, Lorrin G. Kennamer, R. C. Means, Charles H. Smith, H. K. Snell, Jerry Todd, Robert B. Williamson Administrative Assistant: Patricia Cloud Energy Specialist and Radio Coordinator: Robert M. Lock­wood Transportation Specialist: Charles P. Zlatkovich Coordinator of Special Projects and Television: Robert H. Ryan Research Associates: Bryan Adair. Robert Barnstone, C. P. Blair, Kathryn Burger, Lynn Curtis, Michael Dildine, Christine Fox, Paul W. Green, Ida M. Lambeth, Kathleen Luft, Christine McCullough, Carlos Marin, Vida Minoo­Hamedani, Lorna Monti, Dianne Priddy, Eugene Robin· son, Margaret Woodruff Computer Programmer: Marilyn Turnbull Statistical Associate: Mildred Anderson Statistical Assistant: Constance Cooledge Statistical Technician: Kay Davis Cartographers: James Buchanan, William Hezlep Librarian : Merle Danz Administrative Secretary : Jewell Patton Administrative Clerk: Karin Meyer Senior Secretaries: Jennifer Brewster, Sandy Kessler, Clintsy Sturgill Senior Clerk Typists: Nancy Davis, Geraldine Edwards, Yolanda Mindieta, Marguerite Philpott Senior Clerks: Robert Jenkins, Salvador B. Macias Clerk: Rodolfo Rodriguez Printing Coordinator: Daniel P. Rosas Print Shop Foreman : Robert L. Dorsett COVER DESIGN BY GILBERT CONWOOP Reprints or feature articles ue available from the Bureau at tea cents each. The Bureau or BusineM Research is a member or the Asll>ciatioll for University BusineM and Economic Research. US ISSN 0040-4209 THE BUSINESS SITUATION IN TEXAS Robert H. Ryan Stoutly resisting several recessionary influences, the Index of Texas Business Activity moved upward by 5 percent in February to establish a new record high. During the first two months of this year Texas business was 10 percent more active than during January-February 1973 in terms of actual volume. Over the same period of time the dollar volume of bank debits in Texas swelled by 33 percent, dramatic proof of how ineffectual the dollar is becoming. Further evidence of the effect of inflation in Texas is provided by employment and earnings statistics from the Texas Employment Commission. From 1973 to 1974 weekly earnings of the average manufacturing worker rose by 11 percent, almost the same increase as that in consumer prices; but to achieve these earnings, the manufacturing employee worked 4 percent longer hours. In other words, the buying power of Texas factory workers per hour worked actually declined. A certain reluctance to spend these hard-earned dollars may be shown in the record of department store sales in the Eleventh Federal Reserve District. The stores reported only 8 percent higher dollar volume this February than last, an increase considerably less than that in personal income and perhaps not much greater than the increase in department store prices in general. It is fair to conclude that department stores are not selling significantly more goods than they did a year ago. Consumer price indexes for Dallas, Houston, and the United States are shown in the accompanying table for major categories of expenditures. While Dallas prices have generally risen a bit less than prices in the nation as a whole, apparel prices have gone up faster in Dallas than elsewhere. Since 1967 the rise in prices of men's and boys' clothing in Dallas has been 35 percent greater than the comparable rise for the nation as a whole ; women's and girls' clothing prices have gone up 12 percent faster in Dallas than nationally. Houston apparel prices have also scaled upward more rapidly than U.S. apparel prices during the past seven years, but it is women's and girls' clothing prices that have farthest outstripped national averages. The increase in prices of women's and girls' apparel in Houston has been 72 percent greater than the U.S. increase since 1967. "Bread" has come to mean "money" in the American street language, but the equation is a misleading one, for bread is now worth a good deal more than money. The bakery and cereal products that could be bought in Houston with an hour's factory wages last year cost 75 minutes' wages this year. Additional pressure on food prices, not only in Texas but nationwide, will result from the windswept drouth that has already destroyed much of the wheat crop of the High Plains. Last year Texas' wheat belt produced 98 million bushels; this year's output may not be much more than half that amount. Cotton and grain sorghum crops may suffer, too, unless timely rainfalls rescue them. Permanent losses have already been caused by soil erosion, especially of new land going into crop production. The high prices of herbicides, insecticides, and especially chemical fertilizers are adding sharply to the cost of farm production in Texas. The suggestion that manure from feedlots be substituted for synthetic fertilizers fails to take account of the fact that farm machinery is mostly designed to handle only the synthetic types, which are based largely on scarce and expensive natural gas. Because farmers must compete in the market for industrial materials, the index of prices paid by farmers in the U.S. has increased 17 percent since early 1973, and the increases in farm expenses compounded by poor crop results are being expressed in drastically higher food prices at the consumer level. The U.S. Bureau of Labor Statistics has noted that Dallas consumer prices increased more rapidly during the quarter from November 1973 to February 1974 (+2.9 INDEXES OF CONSUMER PRICES U.S., DALLAS, AND HOUSTON,* TEXAS (1967=100) Percent change Feb 1974 Jan 1974 Feb Jan from from Classification 1974 1974 Feb 1973 Jan 1973 All items United States 14 1.5 10.0 Dallas 139.6 9.3 Houston 139. 1 9.4 Food United States 157.6 20.2 Dallas 154. 7 18.0 Houston 155.6 19.1 Housing United States 143.4 8.6 Dallas 137.3 6.6 Houst on 139.7 7.1 Apparel and upkeep United States 130.4 5.5 Dallas 133.9 6.6 Houston 136.4 8.5 Transportation United States 129.3 6.8 Dallas 132.0 10.9 Houston 121.9 6.8 Health and recreation United States 134.5 5.0 Dallas 135.3 4.6 Houston 136.6 4.9 * Houston index computed quarterly. Source: Bureau of Labor Statistics, U.S. Department of Labor. percent) than during any quarter since 1 963, when the Dallas price index was initiated. During the year ending February 1974, however, consumer prices were up less sharply in Dallas ( +9.3 percent) than in the nation as a whole ( + 10.0 percent). Not surprisingly, food prices have led the inflationary parade. Food at home cost 19.6 percent more in Dallas during February than a year earlier, and the comparable increases in Houston and the U.S. were both 22. 2 percent. Energy costs have also had telling effect on the price indexes, and the relatively low cost of fuels in the Southwest has helped restrain inflation slightly in Dallas and Houston. During February those two Texas cities still had the lowest gasoline prices among the twenty-three U.S. metropolitan areas sampled by the Bureau of Labor Statistics-42.7 cents a gallon in Houston and 44.9 cents in Dallas, both for regular grade. The national average was 49 .1 cents. Household gas and electric services have also remained relatively economical in Texas. In Dallas gas and electric costs for the average household declined 0.8 percent from February to February, while the national average gained by 10.3 percent. The name of the current recession is Inflation. It has become impossible to conceal from consumers any longer that their seeming dollar prosperity is being purchased at the cost of much lower-value dollars. Indeed the value of the dollar has dropped so precipitously in the past year that the average American family is clearly worse off than a year ago. In February 1974 Americans were able to buy only 95.5 percent as much in goods and services as a year earlier. Comparable figures for Texas alone are not available; however, Texas personal income has risen no more rapidly than prices in the past year; further, the income stream is being more heavily taxed and must meet the needs of an increasing population. Thus it is apparent that the average Texas family has lost buying power in the consumer market place. One major New York bank has been advertising that "being rich costs more than it used to." So does being poor. A government-sponsored food specialist in Texas recent­ly advised the television audience to help solve their economic problems by eating less. Some observers may have felt that it would be sounder to advise less saving, since saved dollars are subject to such rapid economic evaporation. At a time of 10 percent annual inflation, investments that yield less than 10 percent may be losing propositions unless they carry special tax advantages. Faith has been shaken in the capability of technology to increase worker productivity and thus combat inflation. In Texas 64 percent of the nonfarm workers are employed in trade and services, industries in which productivity in­creases are sometimes possible but certainly more difficult to achieve than they are in manufacturing and mining. (The ratio for Texas is up from 62 percent a decade ago.) 200 1 INDUSTRIAL ELECTRIC-POWER USE, TEXAS Index Adjusted for Seasonal Voriotion-1967=100 - 150 - ..i- N-V' - -~~ . -~ 100 ~ 50 0 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 RESIDENTIAL ELECTRIC-POWER USE, TEXAS Further, today's workers are typically protected by unemployment insurance and often by a cushion of savings. Even when they lose their jobs they may continue to spend money more freely than if they were not so well protected. Therefore, even unemployment, though it was never an acceptable remedy for inflation, has less deflationary impact than it once had. Texans and Americans at large have taken pride in their commanding position in world resource markets-and in consumption of resources. The sudden confluence of unrelated events-poor crop years, the Arab oil embargo, and rapidly increasing imbalance between production and consumption-has dramatically demonstrated the need for major international readjustments, not just to protect the pride of a few major powers but to keep them from disaster. Forthcoming issues of the Texas Business Review will appraise the potential of geothermal energy in Texas, the effects of agricultural price policies, and the effects of oil shortages on Texas industry. Energy, food, and metals have become the critical factors in world economics, and their output must be increased. There are clearly means of expanding production, but most of those means call for enterprise and international cooperation at levels not yet known. SELECTED BAROMETERS OF TEXAS BUSINESS (Indexes-Adjusted for seasonal variation-1967=100) Percent change Year-to- Feb date Year-to­date 1974 from average 1974 Index Feb 1974 Jan 1974 average 1974 Jan 1974 from 1973 Estimated personal income 187. 8p 183.2p 185. 5 3 11 Business activity 192.9 184.2r 188.6 5 10 Crude-petroleum production 117. 8p 122.4P 120.1 4 4 Crude-oil runs to stills 102.9 113.6 108.3 9 -9 Total electric-power use 163.7p 165.6p 164.7 3 Industrial electric- power use 147.9p 151.3p 149.6 - 2 8 Bank debits 294.4 277.1 285.8 6 33 Urban building permits issued 169. 1 p 203.3p 186.2 -17 -1 New residential 159.4p 171.6p 165.5 - 7 -30 New nonresidential (unadjusted) 176.0p 239.3p 207.7 -26 39 Total industrial production 137.lp 138.5p 137.8 - 1 4 Total nonfarm em­ployment 132.lp 131.7p 131.9 •• 6 Manufacturing em­ployment 123.2p 123.4p 123.3 •• 5 Total unemployment 135. 8 134.4 135.1 1 3 Insured unemployment 159.2 150.5 154.9 6 19 Average weekly earn- ings-manufacturing 143.4p 147.7p 145.6 3 11 Average weekly hours- manufacturing 98.8P 1oi.2P 100.0 2 4 p Preliminary. r Revised. • • Change is less than one half of 1 percent. 300 BANK DEBITS, TEXAS I viAf / lndu Adjust&d for Seasonal Voriotkln-1967=100 250 •• J 200 .JJV­ t.~~ 150 • N-1" \V' • .1 rrt1' 100 ..... ~ ~ 50 0 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 Some of the world inflation, which is more severe in many other countries than in the United States, is due to bidding up commodity prices in the expectation of continu­ing inflation. In other words, inflation has reached the point of feeding upon itself; many price increases are posted merely in the expectation that by the time deliveries are made costs will surely be higher. Thus far that expectation has not been false. The most ominous development, perhaps, is the current tendency to consider the prices in industrial suppliers' contracts merely as bases for negotiation and not as binding commitments. Many suppliers decline to quote firm prices for future delivery, but those who do are likely to ask higher prices when delivery time comes. One large Texas plant is now projected to cost at least 20 percent more than it was estimated to cost last November. But the worst may be yet to come, for much of the equipment cannot now be secured at a firm price for future delivery, and it will doubtless cost more by the time it is needed for installation two or three years hence. The Wall Street Journal recently summed up the situation in a front-page headline: "Many Contracts Now Aren't Worth Paper They're Printed On." Europeans have been taken to task for showing so little confidence in the dollar; the fact is, many Americans have shown even less. In an increasingly interdependent world economic com­munity, single nations, even superpowers, are powerless to contain their problems. Nations are no longer self-suffi­cient, not even the United States or the Soviet Union. Some key nations, notably Great Britain and Japan, are desperate­ly dependent upon international trade. The result is that inflation in any one country is reflected in world prices. • In Dallas gasoline prices gained nearly 28 percent between October and February (faster than in any com­ • Texas-made and -consumed candy will cost more because the wholesale price of cocoa from Central and South America has almost doubled in the past year. • Inflation and high demand for new housing in Japan have drained U.S. lumber and plywood supplies and raised prices, making Texas housing more expensive. (The average single-family house authorized for construction in Midland parable U.S. city) partly because Middle Eastern oil producers had the power to control world supply and prices. NONAGRICULTURAL WAGE AND SALARY ESTIMATES SELECTED LABOR MARKET AREAS Anticipated Feb Jan Feb May Labor market area 1974 1974 197 3 1974 Abilene 38,325 38,11 5 36,855 39,020 Amarillo 55,520 55,1 70 53,580 55,540 Austin 154,950 152,600 150,500 156,100 Beaumont-Port Arthur- Orange 121,600 122,200 117,000 122,900 Brownsville-Harlingen- San Benito 43,220 43,140 39,670 43,760 Corpus Christi 90,670 91,310 88,990 90,140 Dallas 752,100 749,000 719,900 766,800 El Paso 128,000 128,200 123,300 128,400 Fort Worth 293,700 291,100 275,800 296,800 Galveston-Texas City 56,650 56,250 54,050 59,500 Houston 909,000 909,800 864,800 915,200 Laredo 20,580 20,61 5 21,520 20,610 Longview-Marshall 45,430 45,210 44,460 45,810 Lubbock 72,050 71,230 65,880 72,935 McAllen 44,850 43,930 40,950 47,200 Midland-Odessa 63,820 63,940 60,300 64,840 San Angelo 21,800 21,520 20,750 22,220 San Antonio 307,050 304,250 300,500 308,750 Sherman-Denison 29,960 29,840 28,560 30,070 Texarkana 38,010 37,630 38,350 38,010 Tyler 38,830 38,580 37,020 39,340 Waco 55,820 5 5,610 55,510 56,120 Wichita Falls 41,24 5 41,355 39,475 41,855 Total, labor-market areas 3,423,180 3,410,595 3,277,720 3,461 ,920 Source: Texas Employment Commission. in January and February 1974 was projected to cost $39,230.) • Education in Texas is becoming more expensive be­cause books and paper made from Canadian pulpwood have soared in price. • Amateur photographers and audio buffs are paying more for equipment, partly because factory workers living costs in Japan have gone up 23 percent in the past year. Prices at the wholesale level have continued to rise so steeply that further consumer price increases are obviously in prospect. In February the Bureau of Labor Statistics posted a 1. 5-percent increase in the Wholesale Price Index (I.2 percent after seasonal adjustment). The compound annual rate for the months December through January amounted to 29.4 percent, and the change from February 1973 to February 1974 was 20.3 percent. Most of the recent increase was attributed by the BLS to higher prices for fuels, metals, and farm and food products. Nevertheless, all fifteen major commodity groups included in the wholesale index advanced from January to February. Because wholesale markets are so tightly integrated across the nation, price indexes for individual states are not prepared by the federal statisticians. Fuels rose more rapidly in price early this year than any other wholesale group, but only because of the gains in gasoline, residuals, and lubricants; light and middle distil­lates weakened. Crude petroleum prices were up 13.0 percent in February. Iron and steel scrap prices increased almost 25 percent, and most metal and metal-product prices were up substan­tially. These gains account in large part for the inflation and insecurity of prices in the industrial construction and equipment sector of the economy. For example, the scarcity of scrap and the high prices asked for it have influenced the reinforcing rod market, greatly inflating prices and making supply commitments uncertain. Despite efforts to attribute the inflation of food prices to some unidentified "middlemen," wholesale prices of farm products have risen far faster in the past year (36 percent from February to February) than have prices of processed foods and feeds. Of course some of the gains at the farm level have yet to be translated into wholesale (and retail) prices of processed foods. Lumber, wood products, and paper make up one of the most important wholesale commodity groups and currently one of the most troublesome. Not only have these goods risen in price substantially during the past year (about 14 percent), they have been rising for some time. Lumber and wood products have gone up 84 percent since 1967, while all wholesale commodities have gone up SO percent. Today not only high prices but inflation-breeding supply shortages characterize the market for wood-based products. The most stable sector of the wholesale market is the consumer-durables category, up only 5 percent in the last year to a level 20 percent higher than in 1967. This sector includes automobiles, furniture, and household durable goods, which have generally shown less tendency to scale upward in price than have any other products of compara­ble importance to the national economy. In spite of the alarming degree of inflation, Texas employment and business activity have continued to demonstrate the strength and resilience of the economy, particularly in some sectors and some geographic areas. SOURCE: Federal Reserve Bank of Dallas. From January-February 1973 to the first two months this year Texas nonfarm employment was up by 6 percent, a change that represents some 238,500 new jobs. Insured unemployment, though, was up by 19 percent, indicating that the labor force has expanded faster than the ability of the economy to absorb the new workers. Even so, the total unemployment rate for the state, excluding farm workers, was only 3.7 percent and would have been even lower but for the effect of extraordinarily high rates of joblessness in such areas as Laredo (17.0 percent), the Lower Rio Grande Valley (8.2 percent), and Texarkana (7.1 percent). Employment has gained since last year in every major industrial category except aircraft manufacturing. Weekly pay is up, too, almost across the board. The pay gains in some industries, though, do not begin to match increases in living costs. The losses in buying power have tended to be sharpest among many of the lowest-paid workers-garment workers, retail personnel, and bank employees, none of whom average much more than $100 a week. By contrast, oil refinery workers are paid an average of $250 a week and have had larger pay raises than many other industrial workers. From February to February manufacturing employment in Texas expanded by 4.5 percent; yet manufacturing production grew only 1.9 percent. The consequences of this shrinkage in output per workers scarcely require comment. The expansion of Texas business as a whole during the past year is a product of divergent trends in the state's major cities. Lubbock has led all Texas cities in growth of business activity from January-February 1973 to the first two months of this year ( +45 percent). Other cities that expanded at above-average rates were Corpus Christi ( +27 BUSINESS-ACTIVITY INDEXES FOR 1WENTY SELECTED TEXAS CITIES (Adjusted for seasonal variation-1967=100) Percent change Year-to- Feb date Feb Janr Year-to­date average 1974 from Jan ave rage 19 74 from City 1974 1974 1974 1974 1973 Abilene 145.5 15 6.8 151.2 - 7 16 Amarillo 148.4 170.5 159.5 - 13 3 Austin 2 59.8 2 5 5.4 257.6 2 16 Beaumont 12 5.2 13 1.2 128.2 5 22 Corpus Christi Corsicana 208.9 128.0 194.6 14 1.4 2 01.8 134.7 7 9 - 27 5 Dallas 2 16.7 198.3 207. 5 9 17 El Paso Fort Worth 175.8 16 1. 3 170. 1 161.9 17 3.0 16 1.6 3 •• 6 1 Galveston 120.0 116.2 11 8. 1 3 - 8 Houston 196.0 187.0 19 1.5 5 6 Laredo 19 1. 7 184. 7 188.2 4 14 Lubbock 183.6 2 28.4 2 0 6.0 - 20 45 Port Arthur 9 1. 1 102.3 96.7 - 11 - 9 San Angelo San Antonio 168.8 154.4 18 2. 1 157.6 17 5.5 156.0 - 7 2 3 -3 Texarkana 100.9 106.0 103.5 5 -13 Tyler Waco 11 8.8 144. 1 128.4 155. 1 123.6 14 9.6 7 7 -21 -10 Wichita Falls 139. 7 135.5 137.6 3 11 r Revised. • • Change is less than one half of 1 percent. percent), Beaumont ( +22 percent), Dallas ( + l 7 percent), Abi­lene and Austin ( + 16 percent), and Laredo ( + 14 percent). Other cities registered significant declines: Tyler (-21 percent), Texarkana (-13 percent), Waco (-10 percent), Port Arthur (-9 percent), and Galveston (-8 percent). Texas building construction, especially homebuilding, has weakened considerably in the past year. The first two months of 1974 brought authorizations for 3 8 percent fewer single-family houses than the like period of 1973 ; in Dallas-Fort Worth the decline was 4 7 percent and in Houston, 31 percent. Few cities registered large gains. These included most notably Amarillo ( +27 percent), Galves­ton-Texas City and Odessa (both +26 percent), and Abilene (+21 percent). Apartment building has also been somewhat depressed. Among the major Texas cities only San Antonio has witnessed an authentic boom in apartment construction. On the other hand remarkable gains have appeared in nonresidential building in a few cities. Comparison of January-February 1974 with January-Feburary 1973 shows increases of 1157 percent in Midland, 814 percent in San An­gelo, 793 percent in Lubbock, 441 percent in Tyler, and 399 percent in Odessa. All of these changes were associated large­ly but not entirely with the initiation of major building pro­jects. The major gains in construction from 1973 to 1974 (com­paring the first two months of each year) have been in non­metropolitan areas, a reversal of the trend of recent years. The significant declines have taken place in the suburban parts of SMSA's, perhaps partly in response to worries that in a fuel-short economy the far suburbs may be inconvenient lo­cations for homes or businesses. Possibly for the same reason, construction of retail stores has been cut back appreciably. There has been no recovery in the depressed market for downtown store space; yet, retailers are taking serious mea­sure of the problems they may face in attracting customers to fringe-area shopping centers. Construction of new schools, by contrast, has expanded enormously, largely to meet the needs of new residential areas on the urban fringes. Additionally some new college and university building projects have been authorized since the beginning of 1974. The boom in educational construction seems open to some criticism, since school and college enroll­ments are declining as the school-age population shrinks, at least temporarily. A few years ago the motion-picture industry was thought to be moribund, a victim of television. Today more money than ever before is being spent in the construction of new the­aters, generally high-efficiency units often with more than one auditorium but without any of the baroque grandeur of the downtown movie-vaudeville palaces of the 1920s. Con­struction of " amusement buildings," mostly theaters, is being authorized in 1974 at a rate more than double that of 1973. Permits in February alone totaled more than $15 million. It is clear that the last picture show is nowhere in prospect. In all, the Texas economy is moving favorably and its strength is compromised chiefly by national and interna­tional influences having to do with supplies and prices and with sharp differentials in population growth and economic development among various parts of the world. LIGNITE: THE OTHER FUEL OF TEXAS* William L. Fisher and William R. Kaiser•• Lignite, or low-rank coal, is rapidly becoming a major energy raw material in Texas. In 197 l Texas met approxi­mately 1 percent of its electrical generating capacity by the burning of lignite. When currently announced plants have been constructed and are on line, approximately 10 percent of the state's total generating capacity will come from lignite. And with no ease in the demand for oil and gas, the role of lignite as an energy source will undoubtedly increase even more in the coming decade. Such is the pattern for a state that accounts for more than 40 percent of the crude oil, natural gas, and natural gas liquids produced in the United States. In turn, the oil and gas produced in the United States account for nearly 80 percent of the nation's energy base. What is lignite and why has this commodity assumed such a rapidly increasing role in the energy base of a state that has led the nation in oil and gas production for thirty-nine consecutive years? The use of lignite as a fuel base in Texas extends back to the 1880s. It was one of the first mineral resources utilized by the early settlers. As early as 1819, a Frenchman by the name of L'Heriter indicated a "mine de charbon de terre" in East Texas on a map accompanying a report, "Le Champ-D' Asile, tableau topo­graphique et historique du Texas," published in Paris. Prior to the advent of natural gas and oil as principal energy raw materials in the state, lignite was the major energy source. During the first third of this century, more than 100 mines operated in East Texas, though many were small. Principal production was during the years from 1910 to about 1930. Published reports indicate that lignite was produced and used around 1850, but early production was small and local. Production figures are available as early as 1888 in the annual reports of the long-defunct office of the State Mine Inspector. From an annual production of about 20,000 tons in the late 1880s, lignite production gradually increased to as much as 1.4 million short tons in 1914. Yearly production averaged about one million tons from 1915 through 1930. From 1930 to 1940 annual production dropped to slightly more than 0.5 million tons, and by 1950 it had practically ceased. In 19 54, however, at a time *During the past one hundred years, the Bureau of Economic Geology and its predecessor, the State Geological Survey, have published numerous reports on the lignite and coal resources of Texas. A report by W. L. Fisher summarized much of the then-known information on reserves, quality, and distribution. Basin analysis studies by the Bureau in the 1960s delineated the immense deep-basin lignite resources of the state. This article, a summary of a comprehensive new report on Texas lignites, prepared by W. R. Kaiser, will be published shortly by the Bureau of Economic Geology. **Dr. Fisher is a professor of geological sciences and director of the Bureau of Economic Geology, The University of Texas at Austin. Dr. Kaiser is a research engineer/scientist associate in the Bureau of Economic Geology. when natural gas was widely available, a large lignite mine was opened in Milam County, south of Rockdale, to provide the fuel to generate power used in processing aluminum from South American bauxite. This mine and plant (360-megawatt capacity) became the first major mine-mouth operation in Texas. The plant still operates today. At the present time, four large-volume lignite-fueled steam-electric plants, in addition to the Rockdale plant, are in operation or have been announced. The first of these, Big Brown (1,150 megawatt) in Freestone County near Fair­field, went into operation in 1971. It supplies a substantial part of the electrical power consumed in the Dallas area. Two others, Monticello (I,150 megawatt) in Titus County, and Martin Lake (1,500 megawatt) in Panola County, are scheduled to be in operation by 1975 and 1977, respec­tively. A 750-megawatt plant utilizing lignite is to be constructed near Athens. Reserves are adequate at each plant site to increase existing generating capacity. Each of the plants will consume between 4 and 8 million tons of lignite per year, accounting for a yearly production twenty times the peak production of early years. Several areas with substantial lignite reserves are presently held by energy and utility companies and will be developed as power sources in the near future. Reserves and Resources Texas lignite resources, situated mainly in East Texas, are very large. Lignite deposits within ninety feet of the ground surface, and thus easily available to conventional surface mining, were conservatively computed at 3.3 billion short tons. 1 Recent mapping of lignite lands by the Bureau of Economic Geology indicates approximately one million acres underlain by lignites at depths of less than 200 feet.2 Assuming an average minable thickness of five to ten feet , a total of approximately 10 to 20 billion short tons of potential lignite resources is indicated within surface minable depths. Further assuming requisite reserves of approximately 200 million tons to support a 1, 150 mega­watt plant for thirty-five years, 20 billion tons of lignite resources are sufficient to support 100 such plants, or supply the energy to generate the state's electricity for the next 300 years. 3 Obviously, total mining of all Texas lignites is not feasible, but the order of magnitude of this energy source is apparent. To the near-surface lignite resources available to conven­tional surface mining may be added the much larger resource of the deep-basin lignites, those occurring at depths from 200 to 5,000 feet beneath the surface. In recent studies, the Bureau of Economic Geology has mapped and delineated deep-basin lignite resources in excess of l 00 billion short tons. This is the Btu (British thermal unit) equivalent of approximately 277 billion barrels of oil, or twenty times the current proven reserves of Texas, or the Btu equivalent of approximately 1,660 tcf (trillion cubic feet) of natural gas, about sixteen times the present proven reserves in the state. Not all these deep-basin lignites can be recovered, and indeed, with existing tech­nology, none can be recovered economically. The situation is changing rapidly, however; with higher unit values for energy and with advancing technology in in situ recovery such as gasification, the deep-basin lignites constitute an incredibly large potential energy source for Texas. Occurrence and Quality Lignite is a low-rank, brownish-black coal with a high moisture and volatile matter content, and with a heating value on the order of 7,500 Btu/lb. on an as-mined basis. In Texas, it is convenient to speak of two kinds of lignites, defined on depth of occurrence. Near-surface lignites lie at depths of less than 200 feet and are exploitable by modern surface-mining methods. Deep-basin lignites are present at depths ranging from 200 to 5,000 feet and are potentially exploitable by in situ recovery methods. Lignite is found throughout the Coastal Plain of Texas, from the Rio Grande to the Red and Sabine Rivers. Principal deposits are found north of the Colorado River, with the associated deep-basin lignites found at depth further toward the coast (Figs. 1 and 2). The lignites are widely distributed in several lower Tertiary (Eocene) stratigraphic units. Some of the deposits are in seams too thin (less than four feet thick) or too small areally to be of current commercial significance. The main commercial lignites are found in the Wilcox Group; those of secondary importance, from the standpoint of resources and quality, are found in the Yegua Formation and the Jackson Group. The lignites formed as parts of ancient fluvial, deltaic, and lagoonal systems. Wilcox lignites north of the Trinity River accumulated in river swamps; Wilcox lignites between the Trinity and Colorado Rivers along with the Yegua and Jackson lignites formed largely on delta plains; the Wilcox and Yegua-J ackson lignites south of the Colorado River mainly formed in ancient lagoons. The significance of origin is reflected in size of deposits, in thermal value, and in quality, especially variations in amount of sulfur and ash. Lignites are low-rank coal. The ranking refers to the stage in coalification, going from vegetable matter to peat to lignite to bituminous coal to anthracite coal. Calorific value, generally expressed in Btu per pound, roughly increases with degree of coalification. As the correlation is only general, certain of the Texas lignites have calorific value in excess of certain higher-ranked coals. Sulfur content, particularly important in coals today, is not a function of rank. Accordingly, many Texas lignites have a lower content of sulfur than many higher-rank coals (see accompanying table). The highest-grade lignites occur in the Wilcox Group north of the Colorado River; lower-quality (lower Btu value, higher ash and sulfur content) lignites are found in the Wilcox south of the Colorado and in the Yegua Formation and Jackson Group. Southward in the Texas Coastal Plain, there is an overall decrease in lignite quality. Lowest ash and sulfur values are found in lignites of East and Central Texas; high values occur in the South Texas lignites. Lignites with heating values of l 1,000 to 12,000 Btu/lb. (dry basis) are found in Harrison and Panola Counties, in the area from Lee County to the Trinity River, and in Houston County. Values of 10,000 to 11,000 Btu/lb. characterize the lignites found in belts from the Trinity River to Bowie County, from Medina to Bastrop Counties, and in Fayette County. Most of the lignites of South Texas have values less than 10,000 Btu/lb. Fixed carbon content generally decreases southward, coinciding with decrease in Btu values. Mining and Processing Most of the early mining of lignite in Texas used underground room-and-pillar methods. Modern earth­moving equipment and the availability in Texas of large reserves of lignite beneath shallow, generally unconsoli­dated overburden make surface mining more feasible than underground mining. Overburden is removed by bulldozers, scrapers, shovels, draglines, and power excavators. Single units, shovels, or draglines are used to strip overburden less than forty feet thick; a combination of different types of equipment generally is used to remove overburden greater than forty feet thick. At the Big Brown operation near Fairfield, two electric draglines with seventy-cubic-yard buckets are utilized to strip the forty to fifty feet of overburden from the lignite seam. The lignite is loaded into 180-cubic-yard trucks by an electric power shovel and transported to the power plant. 4 At the Rockdale plant in Milam County, a large conveyor belt is utilized in haulage to the plant site. Commonly stripping is accomplished by following the contour of the terrain (contour strip mining). In other instances, pit advance is down the dip or inclination of the coal seam, with overburden becoming thicker as mining moves downdip. In this method, called area stripping, practical with most Texas deposits, different capacity and type of stripping equipment can be used at the same time along the same cut. Spoil from one advance is piled in the mined-out part of the preceding advance. In open-pit or surface mining up to 90-percent recovery can be obtained. The largest block of lignite not mined is the narrow strip or fender left along the toe of the spoil pile to prevent waste from contaminating the mined coal. A thin blanket of lignite is commonly left in the bottom of the pit to prevent mixing with underlying waste material. Preparation of lignite for burning involves crushing, tearing, and shredding to reduce the lignite to a size and form that can readily be reduced by a secondary crusher. The lignite is finely ground to less than 0.074 mm and air-fired as a dust. Environmental Factors Over the past 150 years coal has provided nearly 50 percent of the total energy obtained from domestically produced fuels. In 1920 it made up 80 percent of the energy base; today it amounts to only about 17 percent. Most of\ this decline has been in direct response to the availability of oil and gas, which have filled uses more conveniently and economically than coal. However, other serious problems with coal have assumed major proportions in recent years of environmental concern. These involve emission of particulate matter and sulfur dioxide and land disruption from surface mining. These environmental prob­lems have led directly to progressively stricter controls, and although the present energy crunch may lead to a tempo­rary lessening of certain controls, no long-term assessment of Texas lignites should be made without attention to obvious environmental impact. Environmental impact, except for air pollution, is about the same whether lignite is used in steam-electric or gasification plants. The building of mine-mouth steam­electric or gasification plants requires substantial land. Total acreage either leased or purchased often exceeds 10,000 acres, including land for the plant site, spurs and haul roads, storage areas, cooling water reservoir, and lignite reserves. Modern steam plants require 1.0 to 1. 25 surface REGIONAL COMPOSITIONAL VARIATION OF TEXAS LIGNITE As received basis Volatile Fixed matter carbon Ash Sulfur Btu/lb. Wilcox x= 35.70 26.76 9.95 0.81 7,705 Eastl s = 6.97 7.54 5.80 0. 34 622 Wilcox N = 89 x= 33.82 87 29.49 89 9.10 8 2 1.00 59 7,916 Cent rat2 s = 5.49 5.66 2.54 0.44 839 Wilcox N = 76 x= 33. 5 1 7 6 27.55 76 15.10 69 1.66 68 7,508 South3 s = 9.83 9.47 12. 14 0.94 496 N = 17 18 18 16 11 Yegua-J ackson x= 34.89 21.79 10.95 0.83 7, 124 Southeast s = 5.21 4.41 6.08 0.4 1 526 N = 17 16 16 10 10 Yegua-J ackson x= 28.83 2 1.01 40.84 1. 78 6, 130 Southeast s = 3.6 8 3.08 6.29 0.72 735 N = 8 8 8 8 8 Stat ewide moisture . .:!:. 30 percent. X = arithmetic mean. S = standard deviation. N = number of analyses. 1 North of the Trinity River (except Shelby and Nacogdoches Counties) . 2 Freestone County through Bast rop County (Colorado River). 3 South of Colorado River. acres of reservoir per megawatt of capacity. A gasification plant producing 250 MMcfd (million cubic feet per day) will need about 10,000 acre-feet of water per year. In areas where the availability of water is critical, such as South Texas, future lignite exploitation may hinge more on water availability than on lignite reserves. The principal pollutants generated by solid fuel-burning plants are sulfur oxides, nitrogen oxides, carbon dioxide, carbon particulates (soot), fly ash, and waste heat. At present sulfur oxides and particulates are the air pollutants . of prime public health concern. There is relatively little concern over nitrogen oxides because the lower combustion temperatures and slower quenching rates of stationary plants minimize NOx emissions and its health risks are less well defined. Currently in Texas, stationary plants burning lignite meet two sets of emission standards. Plants permit­ted before December 1971 meet the following standards: so2, 3.0 pounds per million Btu of input; particulates, 0.3 pound; and opacity, 30 percent. Plants permitted today must meet the following standards of the Environmental Protection Agency: so2, 1.2 pounds per million Btu of input; particulates, 0.1 pound; opacity, 20 percent; and N02, 0. 7 pound. Plants at Rockdale, Fairfield, and Monti­cello operate or will operate under the less stringent standards, while the scheduled Martin Lake Plant (Panola County) and other future plants must meet the new standards. Unfortunately, no sound commercial process exists for the removal of so2 from stack emissions. Up to now, the problem has been solved only by burning low-sulfur coals. Under the old standards, Texas lignite with less than 1.6 percent sulfur ( 100 percent so2 up stack) could be used. The new standards require lignite with less than 0.6 percent sulfur. Although sulfur content in Texas lignites is relatively low, a large percentage of the reserves ..... have sulfur content in excess of 0.6 percent. Obviously, without new sulfur removal technology much of the Texas lignite is unsuitable for direct combustion, especially the higher-sulfur lignites of South Texas. If lignite is used for gasification, sulfur content is much less of a problem. Particulates are effectively removed by electrostatic precipitators; the principal problem is waste disposal. For example, a plant burning 6 million tons of Texas lignite per year will produce about 600,000 tons of ash. Some of the ash can be utilized as by-products, but a substantial part must be stored or disposed in pits. The environmental effects of surface mining in Texas have been reviewed by the Bureau of Economic Geology. 5 Presently, lignite strip mining in Texas is on a relatively local scale, but as more plants are constructed, a much larger amount of land will be disturbed. For example, a 1,000-megawatt plant operating over a life of thirty-five years will utilize about 200,000,000 tons of lignite. An acre-foot of Texas lignite will yield about 1,800 short tons. If a ten-foot seam is mined, approximately 10,000 acres of land will be disturbed during the life of a 1,000-megawatt plant. Three factors, within the limits of the physical and chemical characteristics of the spoil material, bear on a successful reclamation program: climate, terrain, and origi­nal land capability or value. In areas of high to moderate rainfall such as East and Central Texas, revegetation occurs easily and naturally. In dry areas such as South Texas, reclamation will be more difficult. For example, certain mined-out lands in East Texas have been revegetated naturally in about one decade; by contrast, fifty-year-old mine dumps in the Laredo area are totally devoid of vegetation. Terrain is not a serious limitation to reclamation in Texas, as it is in the Appalachian area. The lignite lands are flat to moderately rolling country, a topography easily reproduced from parallel rows of unconsolidated spoil by redistribution and remolding. Most of the lands are post oak and savannah in the native state. Soils developed are not markedly different from underlying sediments and rocks, hence topsoils are not significantly more fertile than overburden waste. There is no mine-land reclamation law in Texas, al­though recent operations such as that of the Industrial Generating Company at Fairfield employ, on a voluntary basis, an extensive reclamation program. Mined land is returned to the original topography and planted with grasses and native trees. Runoff waters are kept on the property and monitored in holding ponds before being allowed to drain into area streams. It is certain that as lignite mining becomes more extensive, land reclamation will be mandatory. Fortunately, the principal deposits of lignite in Texas are in the eastern part of the state, where climate and terrain help make reclamation feasible. Restric­tions currently being debated in federal strip-mining legisla­tion, such as slope prohibitions and mining on federal land, would not affect surface mining in Texas. The Deep-Basin Lignites A series of basin analysis studies conducted by the Bureau of Economic Geology over the past decade have revealed tremendous reserves of lignites at depth in the Texas Coastal Plain.6 Resources well in excess of 100 billion tons have been delineated and mapped. Principal deposits of deep-basin lignites are found in Madison, Houston, Leon, Lee, Fayette, and Bastrop Counties, where numerous seams, each up to as much as twenty-five feet in thickness, are developed. Possibly certain of these deep­basin lignites could be mined by conventional underground mining methods, but the full utilization of this vast resource depends chiefly on future technological develop­ments in in situ recovery. Of several processes, underground gasification of lignite holds the most promise. The current available technology of coal gasification is based on worldwide activity that peaked in the period from 1945 to 1960. Experimental work was conducted in Great Britain, Morocco (by the French), Belgium, Italy, the United States, and Russia. The most extensive work has been done by the Russians; only in the USSR have industrial plants for underground gasification been instal­led. Currently, Union Pacific Corporation and the U.S. Bureau of Mines are conducting a joint underground gasification project at Hanna, Wyoming_ 7 Several private U.S. companies have experimented with underground coal gasification, but results have not yet been made public. 8 Underground gasification methods use a partial oxida­tion approach and are classed as shaft and shaftless methods. Shaft methods require men to work underground to prepare the seams for gasification; shaftless methods require no underground work since the seams are reached by boreholes. Three shaft methods have been reported : chamber, stream, and borehole producer. The stream method has been the most successful but is best applied to steeply dipping coal seams. The borehole producer method is best suited for horizontal or gently dipping beds. Parallel underground galleries are prepared on a spacing of about 500 feet. Between the galleries and perpendicular to them horizontal boreholes on a spacing of fifteen feet are drilled. Gasification is started by igniting the horizontal boreholes farthest from the general access gallery. Blast (air or air, oxygen, and steam mixture) comes down the central inlet shaft into the inlet gallery and through the boreholes being gasified. Product gases are recovered from shafts or bore­holes intersecting offtake galleries. The basic shaftless method, the method most applicable to Texas lignites, is the so-called percolation or filtration method, in which numerous variations involve different borehole sizes, number of boreholes, locational patterns, methods of linking, and gasification procedures. The coal seam is penetrated by vertical boreholes spaced fifty to 400 NOTES 1 J. M. Perkins and J. T. Lonsdale, Mineral R esources of the Texas Coastal Plain, preliminary report for the Bureau of Reclamation, U.S. Department of the Interior (Austin: Bureau of Economic Geology, The University of Texas at Austin, 1955). 2wmiam R. Kaiser, Texas Lignite: Near-Surface and Deep-Basin R esources (Austin: Bureau of Economic Geology, The University o;Texas at Austin, forthcoming). 3115.7 x 10 KWH (1971), 7500 Btu/lb. lignite, plant efficiency 40 perce nt. 4William R. Kaiser and C. G. Groat, Lignite Geology, Mining and Reclamation at Big Brown Steam Plant near Fairfield, Texas, a field trip guideb ook for the annual meeting of the Geological Society of America, Dallas, November 1973. Sc. G. Groat, Inventory and Environmental Effects of Surface Mining in Texas: Preliminary Report (Austin: Bureau of Economic Geology, The University of Texas at Austin, 197 3). 6william L. Fisher and J. H. McGowen, "Depositional Systems in the Wilcox Group of Texas and Their Relation­ship to Occurrence of Oil and Gas," Gulf Coast Association of Geological Societies Transactions 17 (1967): 105-125; William L. Fisher, "Facies Ch aracterization of Gulf Coast Delta Systems, with Some Holocene Analogues," Gulf Coast Association of Geological Societies Transactions 19 (1969): 239-261; William L. Fisher, C. V. Proctor, Jr., W. E. Galloway, and J. S. Nagle, "Depostitional Systems in the Jackson Group of Texas: Their Relationship to Oil, Gas, and Uranium," Gulf Coast Association of Geological Societies Transactions 20 (1970): 234-261; Kais·er, Texas Lignite. 7L. A. Schrider and J. Pasini III; "Underground Gasifica­tion of Coal-Pilot Test, Hanna, Wyoming," paper presented at the Fifth Synthetic Pipeline Gas Symposium of the American Gas Association, Chicago, 197 3. 8Jbid. 9Arthur D. Little, Inc., A Current Appraisal of Under­ground Coal Gasification (Springfield, Virginia: U.S. Depart­ment of Commerce, National Technical Information Service, 1972). feet apart and located in various geometric patterns or by long horizontal boreholes. Gasification takes place between different pairs of linked boreholes, with offtake and intake holes depending on the locational pattern and gasification procedure. High-rank coals usually must be fractured to obtain requisite permeability; lignites generally have suffi­cient natural permeability. A Russian percolation installa­tion produced 15.6 billion cubic feet of gas per year utilizing a lignite with a 30 percent moisture and 37 percent ash content, and a heating value of 4,900 Btu/lb. Texas lignites have comparable moisture content, but substan­tially less ash and higher heating values. Potentially, underground gasification of coal is a cheap source of fuel for electric-power generation and of raw material for synthetic liquid fuels and pipeline-quality gas. The methods so far developed have been operated on a substantial scale. They can produce a combustible gas of low Btu value (SO to 280 Btu/scf), but not on a continuous basis or at a constant Btu value. Several problems remain to be solved, involving control of the combustion zone, roof collapse, linking of points within the coal seam, leakage of gasifying agents and product gas, and ground water flow into the reaction zone. These problems can be solved ; for example, utilization of the coal's inherent directional properties is a promising approach to solving some of them. With the incredibly large reserves of lignites in Texas amenable to underground or in situ gasification, it is in the paramount interest of the state that a comprehensive research and development program be esta blishe d. The principal environmental factors involved in in situ gasification are ground-water contamination and surface subsidence. Ground water is liable to pollution by phenols and other toxic compounds that are produced in the gasification zone. It should be emphasized that the major deep-basin deposits of lignites in Texas are significantly removed from the main ground-water aquifers. Surface subsidence can be controlled by controlling roof collapse. Importantly, numerous sites can be located far from existing or potential urban areas, where the impact of surface subsidence would be slight. What are the economics of underground gasification? Most of the worldwide active testing of such technology ceased in about 1965 for lack of economic incentive. The entirely different energy supply and demand situation of today and the coming decades has prompted renewed interest. Arthur D. Little, Inc. reviewed the economics of underground gasification, quoting production costs ranging from 40 cents to 300 cents per million Btu,9 and postulated the price a hypothetical power utility would be willing to pay for clean, desulfurized gas leaving an underground gasification site. A product gas of 356 Btu/scf could earn as much as 87 cents per million Btu, while a product gas of 97 Btu/scf could earn as little as 28 cents. Using a pipeline-quality gas production model, a product gas of 343 Btu/scf could earn from 68 to 28 cents per million Btu. Compared to current prices for natural gas, it appears that gas from underground gasification could be competitive. Conclusions Texas has immense reserves of lignite with near-surface resources on the order of I 0 to 20 billion tons and deep-basin resources well in excess of 100 billion tons. Near-surface deposits include those at depths less than 200 feet or accessible with current surface mining technology and economics. The deep-basin lignites, occurring at depths from 200 to 5,000 feet, are recoverable only by in situ methods. Texas lignites were mined in many localities mainly during the first third of this century. With the advent of widely available oil and gas in Texas, lignite declined as an energy base and production practically ceased by 19 50. In the past two years, with the effect of higher energy demands and rising costs for oil and gas, lignite is again assuming a major role in the energy base of Texas. At the present time statewide production of lignite is estimated at about 8 to IO million tons annually, with Texas ranking ninth in the nation (1971 figures). When scheduled plants are completed, production will be on the order of 25 million tons per year, and Texas will rank among the top seven coal-producing states. The long-term future role of lignite as an energy raw material in Texas will depend largely on the availability of other energy resources (fossil fuels, nuclear, solar, and geothermal), on the technology of sulfur removal, and on the technology for in situ recovery. The energy need of Texas is great. The potential of lignite, now being realized, promises to be much greater. It is in the interest of the state that a comprehensive research and development program on Texas lignite be established. 250 200 TOTAL UNEMPLOYMENT, TEXAS lndu Adjusted for Seasonal Voriotion -1967=100 TEXAS CONSTRUCTION Dianne Priddy Spring has traditionally been a season of redecorating, remodeling, and moving plans for homeowners in Texas and across the country. This year, the rising cost of the new single-family house is leading increasing numbers of Ameri­cans to improve existing structures rather than purchase new ones. Land costs now average 22 percent of the sales price, labor expenditures another 22 percent, and materials 56 percent. Energy-related shortages, the scarcity of many raw materials, and the limited availability of skilled workers in the labor force have contributed to the general inflation­ary spiral in the United States, causing a tripling of the expenditures necessary to build the equivalent of the average 1950 house in 1974. Remodeling In the past, if a structure was deemed no longer suitable· for its original purpose, it was demolished, with little regard for the energy costs involved. Now, conservation efforts have created an awareness of the energy cost of demolition, the loss of energy by waste of valuable materials, and the energy expense incurred by the building and operation of replacement structures. Remodeling, in contrast, requires little use of heavy construction machinery, and extensive use of creative talents. Restoration of an old building can have numerous esthetic and practical advantages as well, for many older houses have spacious rooms with higher ceiling.5, thicker walls providing natural insulation against extremes of heat or cold, artistic workmanship in the carved molding.5 framing both ceiling and floor, and large, strategically located windows that provide ventilation and lighting benefits. American homeowners are discovering that remodeling is an increasingly sensible alternative to buying or building a new home. In fact, the remodeling/modernization market is TOTAL BUILDING AUTHORIZED, TEXAS Inde x Adjusted for Seasonal Voriotion-1967=100 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 Includes additions, alterations , and repairs. The no nreside ntial compone nt is not seasonally adjusted. ONE-FAMILY, TWO-FAMILY, AND APARTMENT-BUILDING DWELLING UNITS AUTHORIZED IN STANDARD METROPOLITAN STATISTICAL AREAS, FEBRUARY 1974t (Values in thousands of dollars) One-family dwelling units Two-family dwelling units Apartment-building dwelling units Feb 1974 Jan-Feb 1974 Percent change Jan-Feb 1974 from Jan-Feb 1973 Feb 1974 Jan-Feb 1974 Percent change Jan-Feb 1974 from Jan-Feb 1973 Feb 1974 Jan-Feb 1974 Percent change Jan-Feb 1974 from Jan-Feb 1973 Standard metropolitan statistical area Value No. of units Value No. of units Value No. of units Value No. of units Value No. of units Value No. of units Value No. of units Value No. of units Value No. of units Abilene 482 17 956 35 25 21 0 0 133 6 24 1 200 0 0 0 0 Amarillo 2140 64 4003 114 45 27 0 0 0 0 0 0 0 0 Austin 3739 132 7212 253 -33 -37 167 10 327 18 -87 -88 352 24 9547 822 -12 -32 Beaumont-Port Arthur- Orange 1363 57 2426 97 4 -8 41 6 -18 50 0 0 100 13 -96 -96 Brownsville-Harlingen- San Benito 678 46 1153 76 -34 -25 0 0 0 0 0 0 2000 198 -31 -31 Bryan-College Station 502 25 748 38 -7 6 83 8 83 8 938 300 82 10 1289 178 -36 -37 Corpus Christi 972 58 1609 101 -55 -33 285 24 375 30 -65 50 14 3 314 43 -92 -89 Dallas-Fort Worth 19562 762 40476 1572 -39 -47 121 6 573 34 -32 -15 7009 515 16114 1559 9 -28 El Paso 2783 122 4957 225 -29 -35 329 18 585 28 -3 -30 562 37 4698 297 -42 -60 Galveston-Texas City 1286 48 1835 77 24 26 0 0 0 0 0 0 2000 104 545 142 Houston 15054 550 20531 719 -36 -31 138 10 153 12 -5 20 10058 1245 16334 2140 -61 -51 Ki lleen-Temple 745 31 1550 63 -51 -59 0 0 39 4 30 100 1552 144 1776 175 7003 4275 Laredo 38 4 128 12 -56 -57 0 0 0 0 0 0 0 0 Lubbock 2024 62 4538 140 -13 -26 80 4 367 20 -51 -44 2520 280 2986 340 3 14 McAllen-Pharr-Edinburg 1243 67 2049 140 -5 1 60 4 84 6 -26 -40 132 12 479 54 -75 -65 Midland 708 18 1020 26 -18 -35 0 0 0 0 0 0 0 0 Ode~a 481 19 886 34 18 26 0 0 0 0 1000 108 1000 108 6 -28 San Angelo 236 12 463 26 -63 -52 0 0 0 0 760 98 928 137 -7 -29 San Antonio 6330 291 10444 503 -45 -57 130 14 166 18 6560 775 12555 1561 176 175 Sherman-Denison 273 13 490 21 -26 -28 0 0 18 2 -25 -50 0 0 0 0 Texarkana 188 7 220 10 -34 -41 0 0 0 0 0 0 0 0 Tyler 992 29 1414 42 38 5 0 0 0 0 0 0 2600 192 30 -16 Waco 981 29 1643 48 -36 -52 0 0 35 2 -76 -83 1600 174 1685 191 1062 961 Wichita Falls 647 31 1326 61 4 13 0 0 0 0 0 0 0 0 Total SMSA's 63446 2494 112076 4433 -33 -40 1401 100 2979 194 -56 -46 32200 3425 76404 8112 -3 1 -33 Outside SMSA's 8015 344 14906 6 51 -12 -21 226 16 396 32 83 129 125 24 4306 424 -33 -43 State total 71461 2838 126982 5084 -3 1 -38 1628 11 6 3375 226 -52 -39 3232 5 3449 807 10 8 536 -31 -33 t Metropolitan.areas are listed in accordance with 1970 Bureau of the Census definition. This table includes only the cities reporting in metropolitan areas. •• Change is less than one half of 1 percent . . . . Inadequate basis for comparison. expected to reach the $25-26 billion level in 1974, up from $22.3 billion in 1973. Rising land costs in the suburbs, in combination with increasing gasoline expenditures for commuting to work, have alerted the urban dweller to the possibility that suburbia may not be the utopia he once thought. City landowners may well stay put and expand present facilities as a desirable alternative to moving farther from the city center. Remodeling of kitchen and bath accounts for one third of total expenditures for additions and major remodeling. Realtors point out that when the house is sold, the owner recoups most of the remodeling costs in the selling price. This is particularly true in the case of the remodeled kitchen, which adds more real value to the house than any other change the homeowner can make. Modular and Prefabricated Construction An alternative to the traditional brick-and-mortar (one­at-a-time) method of remodeling is the use of modular and prefabricated units. Many details of these two methods overlap, in that both modular and prefabricated units are built almost entirely off-site, by relatively unskilled labor, and are standardized by assembly-line procedures. The distinction lies in the fact that modular building technology is centered on room-sized "units" that can easily be joined with other rooms, while prefabricated building materials are usually oriented toward wall-or large panel-sized " units." Both are used to facilitate and expedite on-site construc­tion, and assembly-line economies of scale result in major cost savings to the builder. While these concepts have been widely accepted over the past several years in new construction markets, it is possible that greater design flexibility will permit increased use in future years for the segment of existing homes whose owners wish to make additions and major remodeling efforts. Presently, however, customized specifications of plans for ·rooms to be added are beyond adaptation by the rather inflexible production capabilities of most modular and prefab construction companies. Experts say that in the future most U.S. homes will be built by utilizing both modular and prefab technologies. There are cost savings to be realized by having a unit available for occupancy in a number of days or weeks, in contrast to the months or years neccessary to see a conventional home from the planning stage through con­struction, until it is suitable for habitation. Since the production environment for units is controlled at the factory , companies stress the improved quality and the manufacturer's care to reduce waste (by up to 20 percent) at the plant. Further, with shortening of the time lapse SCOPE AND VALUE OF REMODELING JOBS* RESIDENTIAL ~UILDING AUTHORIZED, TEXAS Index Adiusfed for Seasonal Voriotion-1967=100 Average Total Number who cost per value Type of job do annually** job ($000) Additions and major remodeling Added garage 341,600 2,076 709,200 Added carport 244,000 884 215,696 Added driveway 780,800 389 303,700 Added patio 1,464,000 279 408,500 Enclosed porch/breezeway 732,000 989 723,900 Added on room(s) 927,200 2,400 2,225,300 Expanded attic into living area 146,400 1,757 257,200 Put room in basement 732,000 1,217 890,800 Added bathroom 732,000 1,220 893,000 Added fireplace 244,000 785 191,500 Added in-ground swimming pool 97,600 3,969 387,400 Remodeled kitchen 3,367,200 965 3,249,300 Remodeled bath 2,781,600 460 1,279,500 1965 1966 1967 1968 1969 1970 1971 1972 1973 197~ Improvements and Excludes addition1, alterations, ond repairs. maintenance projects Installed floor tile 2,684,000 118 316,700 Installed carpeting 6,392,800 458 2,927,900 Installed ceiling tile 1,854,400 114 211,400 ESTIMATED VALUES OF BUILDING AUTHORIZED IN TEXAS* Installed wall tile 1,073,600 115 123,500 Installed wall paneling 3,220,800 179 576,500 Percent change Installed new heating system 1,220,000 771 940,600 Installed central Feb Jan-Feb air conditioning 1,268,800 1,031 1,308,100 1974 1974 FebP Jan-Febp from from Installed additional electric circuits 2,440,000 154 375,800 1974 1974 Jan Jan-Feb Installed built-in range/oven 292,800 320 93,700 Classification (thousands of dollars) 1974 1973 Installed new water heater 1,952,000 131 255,700 Installed exhaust fan 829,600 56 46,500 All permits 277,307 597,266 -13 •• Installed additional insulation 927,200 87 80,700 New construction 246,506 535,527 -15 -2 Installed lighting fixtures 3,318,400 175 580,700 Residential Put on new roof 2,732,800 491 1,341,800 (housekeeping) 118,258 232,926 3 -29 One-family dwellings 79,469 142,247 27 -28 Put on new gutters 2,000,800 161 322,100 Multiple-familyInstalled exterior siding 1,122,400 1,152 1,293,000 dwellings 38,789 90,679 -25 -29Installed storm Nonresidential buildings 128,248 302,601 -26 39windows/doors 1,952,000 207 404,100 Hotels, motels, andInstalled awnings/canopies 585,600 200 117,100 tourist courts 4,702 10,839 -23 -4Installed exterior shutters 439,200 80 35,100 Amusement buildings 15,450 17,667 597 231Installed fence 1,854,400 216 400,600 Churches 4,684 6,823 119 -3Installed outdoor lighting 1,464,000 52 76,100 Industrial buildings 9,859 27,462 -44 32Burglar/fire alarm systems 146,400 360 52,700 Garages (commercial Shelving 2,049,600 41 84,000 and private) 773 12,372 -93 223 Interior painting 22,448,000 81 1,818,300 Service stations 438 750 40 -61 Wallpapering 9,955,200 72 716,800 Hospitals and Garage door 439,200 158 69,400 institutions 9,233 32,397 -60 49Garage door opener 536,800 168 90,200 Office-bank buildings 20,403 42,610 -8 -6 Exterior doors 878,400 108 94,900 Works and utilities 5,801 23,1 41 -67 350 Exterior painting 17,177,600 142 2,439,200 Educational buildings 30,822 64,932 -10 241 Stores and mercantile • M. R. Robinson, "A Market In Modernization," Professional buildings 19,945 52,479 -39 -20Builder, October 1973, p. 69. Other buildings and• • Based on the 48.8 million single-family homes existing in 1972. structures 6,138 11,129 23 ** Additions, alterations, and repairs 30,801 61,739 15 ** SMSA vs. non-SMSA before enclosure of the completed structure, there is less Total SMSAt 248,666 536,662 -14 -3 chance that materials will be stolen from the construction Central cities 163,457 394,054 -29 ** site. Engineering researchers have demonstrated that modu­Outside central cities 85,209 142,608 48 -11 Total non-SMSA 28,641 60,604 -10 34 lar and prefab housing can more efficiently utilize air 10,000 to 50,000 cooling and heating, since there are fewer joints in the solid population 17,848 36,061 -2 35 Less than 10,000 panel construction, and therefore less chance of escaping population 10,793 24,543 -22 32 air. Despite all of the cost advantages offered in support of * Only buildings for which permits were issued within the incorporated area of a city are included. modular and prefab building technologies, there are some P Preliminary.limitations. Since the housing units are mass produced, they * * Change is less than one half of 1 percent. have a somewhat sterile image. That image can be changed, t Standard metropolitan statistical areas are listed in accordance with 1973 Bureau of the Census definition. however, and there is proof in the hundreds of European Source: Bureau of Business Research in cooperation with the cities that have successfully employed the techniques of Bureau of the Census, U.S. Department of Commerce. modular construction with an exciting variety of exterior ESTIMATES OF NONAGRICULTRUAL EMPLOYMENT IN TEXAS and interior schemes. Perhaps more difficult to overcome are the restrictions imposed by the high transportation rates for moving the large units. For many modular units, thf distribution radius is limited to 125-300 miles. These marketing requirements may result in a large number of smaller companies distributed across the country, rather than a few isolated conglomerates, which, in such a limited locale, would be unable to generate the high-volume sales needed to justify their involvement. Whatever the method chosen to repair and improve today's residential buildings, it is clear that many Ameri­cans are determined to lengthen the life span of their homes. One result may be a substantial reduction of the costs of demolition and the overwhelming social cost of relocation. FEBRUARY STATISTICS IN REVIEW Despite significant year-to-year advances in partic­ular segments of nonresidential construction, the seasonally adjusted index of the Bureau of Business Research for authorized construction in Texas de­clined nearly 17 percent in February 1974 from the January 1974 level. The index fell to 169.1, its lowest point since November 1973, when the figure was 14.8. The categories of amusement buildings, com­mercial garages, educational buildings, and public works and utilities evidenced the most dramatic increases in authorized values. The adjusted index of residential construction experienced moderate weakness and declined almost 8 percent from the month-earlier level of l 71.6 to 159.4. On a year-to-year basis of comparison, declines were experienced in all categories of new residential construction, especially in two-family dwellings, which fell 50 percent from the January-February 1973 level. In contrast to the strong declines registered by all other indexes for February construction, the index of additions, alterations, and repairs maintained its January 1974 level, the highest since June 1973, when the index stood at 184.8. NATURAL GAS IN 1973 Although the marketed production of natural gas in the United States declined by only Q.3 percent during 1973, gas production had been growing by almost 6 percent per year before I 971. Texas consumed 37.9 percent of the gas used in the country last year, and Louisiana consumed 36.1 percent. Percent change Employment FebP Feb 1974 Feb 1974 1974 from from Industry (thousands) Jan 1974 Feb 1973 Total nonagricultural employment 4, 253.1 ** 6 Manufacturing 809.4 ** Durable goods Lumber and wood products Furniture and fixtures 443. 7 26.4 19.9 - •• 1 1 5 3 2 Stone, clay, and glass products Primary-metal industries Fabricated-metal products Machinery, except electrical 34.4 39.3 68.0 87.0 •• ** ** 8 7 10 8 Oil-field machinery 32.7 11 Electrical machinery and equipment Transportation equipment Aircraft and parts Instruments and related 59.1 71.3 34.9 •••• 8 -3 -6 products Other durable goods 19.6 18.7 - 15 3 Nondurable goods Food and kindred products Meat products Textile-mill products Apparel and fabricated textiles 365.7 89.9 18.4 8.1 72.6 - •• ** 1•• •• 4 4 2 5 I Paper and allied products Printing and publishing Chemicals and allied products Industrial chemicals 19.0 45.9 64.9 37.6 •• •••• 4 3 5 6 Petroleum and coal products Other nondurable goods 37.9 27.4 5 8 Nonmanufacturing 3,443. 7 6 Mining Crude petroleum and natural gas 110.9 104. 5 ** •• 6 6 Contract construction 291.1 3 15 Transportation 163.9 3 Communication 61.9 •• 7 Public utilities 53.3 •• Trade Wholesale trade 1,035.6 292.4 - 1 •• 6 5 Retail trade 743.2 6 Building materials, hardware, and farm equipment General merchandise Food stores 39.9 153.0 113.7 1 4•• 7 6 4 Automotive dealers and service stations 112.3 •• 3 Apparel and accessories Other retail trade 44.0 280.3 - 3 •• 4 9 Finance, insurance, and real estate 244.0 8 Banking 59.4 7 Services 706.1 1 7 Hotels and lodging places Medical and other health 46.1 2 6 services 190.9 7 Other services 469. 1 6 Government 770.9 1 4 Federal 160.6 2 p Preliminary. ** Change is less than one half of one percent. Source: Texas Employment Commission in cooperation with the Bureau of Labor Statistics, U.S. Department of Labor. Statistical data compiled by Mildred Anderson, statistical associate, Constance Cooledge, statistical assistant, and Kay Davis, statistical technician. Business conditions are reported in the following tables first by Census. They represent only building intentions within city limits, metropolitan areas, second by counties and cities. Standard since construction permits are not issued except by incorporated metropolitan statistical areas (SMSA's) are defined by county lines cities in Texas. The building data also exclude federal contracts and and include the counties listed. All SMSA's are designated as such public works projects, such as highways, waterways, and reservoirs. by the U.S. Bureau of the Census except one, the Longview­The bank debit statistics for SMSA's and most central Marshall area, which is now a significant metropolitan node. metropolitan cities are collected by the Federal Reserve Bank of Population figures represent the 1970 Census counts except Dallas. Most other bank debits figures shown are collected from where otherwise noted. The population estimates not taken from cooperating banks by the Bureau of Business Research. the Census are generally based on utility connections and are subject Employment estimates are compiled by the Texas Employment to substantial error. Commission in cooperation with the U.S. Bureau of Labor Building-permit values are collected from municipalities by the Statistics. Bureau of Business Research in cooperation with the Bureau of the Footnote symbols are defined on pages 96 and 104. INDICATORS OF LOCAL BUSINESS CONDITIONS FOR STANDARD METROPOLITAN STATISTICAL AREAS Percent change Percent change from from Feb Jan Feb Feb Jan Feb Reported area and indicator 1974 1974 1973 Reported area and indicator 1974 1974 1973 ABILENE SMSA CORPUS CHRISTI SMSA Callahan, Jones and Taylor Counties; population 122,164 Nueces and San Patricio Counties; population 284,832 Urban building permits (dollars) 819,34 5 -47 -1 Urban building permits (dollars) 5,847,001 93 -14 Bank debits, seas. adj. ($1,000) 320,970# 7 32 Bank debits, seas. adj. ($1,000) 1,042,849 13 56 Nonfarm employment 38,350 1 4 Nonfarm employment 90,700 -1 2 Manufacturing employment 6,900 1 12 Manufacturing employment 11 ,570 -2 ** Unemployed (percent) 1.9 6 -17 Unemployed (percent) 4.7 -1 S 12 AMARILLO SMSA DALLAS-FORT WORTH SMSA Potter and Randall Counties; population 144,396 Collin, Dallas, Denton, Ellis, Hood, Johnson, Kaufman, Urban building permits (dollars) 3,783,530 -18 so Parker, Rockwall, Tarrant and Wise Counties; Bank debits, seas. adj. ($1,000) 820,429 -10 16 population 2,377,979 Nonfarm employment 55,500 ** 4 Urban building permits (dollars) 67, 167,870 9 -25 Manufacturing employment 6,700 -1 -1 Bank debits, seas. adj. ($1,000) 23,440,039# 16 43 Unemployed (percent) 2.3 ** -28 Nonfarm employment 1,045,800t 1 5 Manufacturing employment 239,340t ** 3 AUSTIN SMSA Unemployed (percent) 2.6t ** ** Hays and Travis Counties; population 323,158 Urban building permits (dollars) 13,764 ,236 -28 -20 EL PASO SMSA Bank debits, seas. adj. ($1,000) 1,590,943# ** 42 El Paso County; population 359,291 Nonfarm employment 155,000 3 Urban building permits (dollars) 7,068,263 -49 -41 Manufacturing employment 14,1 50 ** 4 Bank debits, seas. adj. ($1,000) 1,177,205 10 31 Unemployed (percent) 2.3 -4 4 Nonfarm employment 128,000 ** 4 Manufacturing employment 30,100 1 12 BEAUMONT-PORT ARTHUR-ORANGE SMSA Unemployed (percent) 5.1 -6 -6 Hardin, Jefferson and Orange Counties; population 345,939 KILLEEN-TEMPLE SMSA Urban building permits (dollars) 2,611,1 4 8 -44 -30 GALVESTON-TEXAS CITY SMSA Bank debits, seas. adj. ($1 ,000) Non farm employment 854,203# 121,600 - 4 ** 29 4 Galveston County; population 169,812 Urban building permits (dollars) 2,620, 153 -31 47 Manufacturing employment Unemployed (percent) 40,800 4. 1 - 1 2 4 -18 Bank debits, seas. adj. ($1,000) Nonfarm employment 337,091 56,700 4 1 15 5 BROWNSVILLE-HARLINGEN-SAN BENITO SMSA Manufacturing employment Unemployed (percent) 10,550 3.4 - ** 17 ** -32 Cameron County; population 140,368 Urban building permits (dollars) 1,483,968 -79 -76 HOUSTON SMSA Bank debits, seas. adj. ($1,000) 281,322 - 1 2 7 Brazoria, Fort Bend, Harris, Liberty, Nonfarm employment 43,200 ** 9 Montgomery and Waller Counties; population 1,999,316 Manufacturing employment Unemployed (percent) 9,000 7.1 - 1 1 15 -22 Urban building permits (dollars) Bank debits, seas. adj. ($1,000) 59,633,921 16,920,116# -26 5 -14 34 BRYAN-COLLEGE STATION SMSA Brazos County; population 57,978 Nonfarm employment Manufacturing employment Unemployed (percent) 909,000 164,600 3.6 - ** 1 3 5 7 5 Urban building permits (dollars) 1,776,196 8 112 Bank debits, seas. adj. ($1,000) 129,486 4 16 (Monthly employ ment reports are not available for the Bryan- College Station SMSA). Percent change from Feb Jan Feb Reported area and indicator 1974 1974 1973 Bell and Coryell Counties; population 159, 794 Urban building permits (dollars) 3,618,426 21 16 Bank debits, seas. adj. ($1,000) 223,680 1 18 (Monthly employment reports are not available for the Killeen-Temple SMSA.) LAREDO SMSA Webb County; population 72,859 Urban building permits (dollars) 102,550 -7 -70 Bank debits, seas. adj. ($1,000) 151,002 3 43 Nonfarm employment 20,600 ** -4 Manufacturing employment 1,540 4 5 Unemployed (percent) 17.0 -10 10 LONGVIEW-MARSHALL METROPOLITAN AREA Gregg and Harrison Counties; population 120,770 Urban building permits (dollars) 9,035,667 104 194 Bank debits ($1,000) 201,197 -21 13 Nonfarm employment 45,450 1 2 Manufacturing employment 15,220 1 ** Unemployed (percent) 3.9 -17 s LUBBOCK SMSA Lubbock County; population 179,295 Urban building permits (dollars) 18,700,230 8 277 Bank debits, seas. adj. ($1,000) 871,345 -11 so Nonfarm employment 72,100 1 9 Manufacturing employment 11,300 3 35 Unemployed (percent) 1.8 6 -22 McALLEN-PHARR-EDINBURG SMSA Hidalgo County; population 181,535 Urban building permits (dollars) 2,049,852 16 -39 Bank debits, seas. adj. ($1,000) 300,648 -4 23 Nonfarm employment 44,850 2 10 Manufacturing employment 6,260 12 31 Unemployed (percent) 9.2 -6 -3 MIDLAND SMSA Midland County; population 65,433 Urban building permits (dollars) 968,522 -92 -67 Bank debits, seas. adj. ($1,000) 273,315 -3 30 Nonfarm employment 55,300 ** 6 Manufacturing employment 5,470 -1 1 Unemployed (percent) 2.4 14 -20 (Employment data are reported for the combined Midland and Odessa SMSA's since employment figures for Midland and Ector Counties, composing one labor-market area, are recorded in com­bined form by the Texas Employment Commission.) ODESSA SMSA Ector County; population 91,805 Urban building permits (dollars) 1,774,770 -55 33 Bankdebits,seas.adj.($1,000) 218,578 9 33 Nonfarm employment 55,300 * * 6 Manufacturing employment 5,470 -1 1 Unemployed (percent) 2.4 14 -20 (Employment data are reported for the combined Midland and Odessa SMSA's since employment figures for Midland and Ector Counties, composing one labor-market area, are recorded in com­bined form by the Texas Employment Commission.) ** Absolute change is less than one half of 1 percent. # Bank debit reports are based on the 1970 census definition for standard metropolitan statistical areas. t Monthly employment reports exclude Hood, Parker, and Wise Counties. Urban building-permit data are preliminary and subject to revision. Percent change from Feb Jan Feb Reported area and indicator 1974 1974 1973 SAN ANGELO SMSA Tom Green County; population 71,047 Urban building permits (dollars) 1,519,225 1 37 Bank debits, seas. adj. ($1,000) 202,317 6 18 Nonfarm employment 21,800 1 5 Manufacturing employment 4,590 3 9 Unemployed (percent) 3.0 3 6 SAN ANTONIO SMSA Bexar, Comal and Guadalupe Counties; population 888, 179 Urban building permits (dollars) 26,831,540 17 45 Bank debits, seas. adj. ($1,000) 2,470,464# 5 17 Nonfarm employment 307,100 2 Manufacturing employment 37,100 ** -3 Unemployed (percent) 4.1 ** 17 SHERMAN-DENISON SMSA Grayson County; population 83,225 Urban building permits (dollars) 434,829 -37 -39 Bank debits, seas. adj. ($1 ,000) 128,530 3 4 Nonfarm employment 29,950 1 5 Manufacturing employment 11,890 3 13 Unemployed (percent) 3.8 9 -7 TEXARKANA SMSA Bowie County, Texas, and Miller County, Arkansas; population 101,198 Urban building permits (dollars) 431,200 207 46 Bank debits, seas. adj. ($1,000) 174,914 1 6 Nonfarm employment 38,000 I - 1 Manufacturing employment 9,270 1 -10 Unemployed (percent) 7.1 4 25 (Since the Texarkana SMSA includes Bowie County in Texas and Miller County in Arkansas, all data, including population, refer to the two-county region.) TYLER SMSA Smith County; population 97,096 Urban building permits (dollars) 1,230,950 -86 -41 Bank debits, seas. adj. ($1,000) 256,399 7 6 Nonfarm employment 38,850 1 5 Manufacturing employment 12,800 I 2 Unemployed (percent) 3.6 -18 3 WACO SMSA McLennan County; population 147,553 Urban building permits (dollars) 3,767,307 111 37 Bank debits, seas. adj. ($1,000) 404,993 s 6 Nonfarm employment 55,800 I I Manufacturing employment 13,590 I -4 Unemployed (percent) 3.6 -20 6 WICHITA FALLS SMSA Clay and Wichita Counties; population 129,941 Urban building permits (dollars) 797,083 -49 -61 Bank debits, seas. adj. ($ 1,000) 358,560# 10 36 Nonfarm employment 41,250 ** 4 Manufacturing employment 6,220 ** 9 Unemployed (percent) 2.6 -16 INDICATORS OF WCAL BUSINESS CONDITIONS FOR INDIVIDUAL MUNICIPALITIES Urban building permits Bank debits COUNTY City Population Feb 1974 (dollars) Percent change from Jan Feb 1974 1973 Feb 1974 (thousands of dollars) Percent change from Jan Feb 1974 1973 ANDERSON Palestine 27,789 14,525 363,600 732 157 26,780 -16 10 ANDREWS Andrews 10,372 8,625 77,546 11,964 -20 13 ANGELINA Lufkin 49,349 23,049 660,940 -50 -60 ARANSAS Aransas Pass (See San Patricio) 8,902 ATASCOSA Pleasanton 18,696 5,407 8,020 4 36 AUSTIN Bellville 13,831 2,371 33,000 8,542 -25 9 BAILEY Muleshoe 8,487 4,525 24,414 -49 43 BASTROP Smithville 17,297 2,959 27,790 197 13 3,233 -19 - 1 BEE Beeville 22,737 13, 506 45,400 503 -72 25,795 -20 3 BELL (In Killeen-Temple SMSA) Bartlett (See Williamson) Belton Harker Heights Killeen Temple 124,483 8,696 4,216 35,507 33,431 145,800 101,200 825,380 2,228,925 109 71 11 20 -10 -50 -25 112 51,453 98,853 -2 -14 16 26 BEXAR (In San Antonio SMSA) San Antonio 830,460 654,153 26,348,116 33 64 2,201,222 -12 17 BOWIE (In Texarkana SMSA) Texarkana 67,813 52, 179 401,580 276 63 137,083 -16 3 BRAZORIA (In Houston SMSA) Angleton Clute Freeport Pearland 108,312 9,77 0 6,023 11,997 6,444 50,200 16,823 23,850 392,045 356 -35 107 -40 -98 69 -19 22,710 6,407 51,038 11,451 -18 -16 5 -9 -5 17 42 24 BRAZOS (Constitutes Bryan-College Station SMSA) Bryan College Station 57,978 33,719 17,676 1,203,256 572,940 -17 201 205 30 102,907 17,201 -16 -15 14 19 BREWSTER Alpine 7,780 5,971 15,000 266 - 66 7,758 -17 25 BROWN Brownwood 25,877 17,368 422,500 -76 BURLESON Caldwell 9,999 2,308 5,005 -23 4 BURNET Marble Falls 11,420 2,209 14,872 -14 95 CALDWELL Lockhart 21 , 178 6,489 156,176 578 406 11,92 5 -18 8 Urban building permits Bank debits COUNTY City Population Feb 1974 (dollars) Percent change from Jan Feb 1974 1973 Feb 1974 (thousands of dollars) Percent change from Jan Feb 1974 1973 CALHOUN Point Comfort Port Lavaca Seadrift 17,831 1,446 10,491 1,092 0 11,650 1,600 -97 -94 838 24, 108 989 -57 -15 s -48 12 85 CAMERON (Constitutes Brownsville­Harlingen-San Benito SMSA) Brownsville Harlingen La Feria Los Fresnos Port Isabel San Benito 140,368 52,522 33,503 2,642 1,297 3,067 15,176 995,899 245,709 55,550 s1,880 134,930 -84 -65 112 216 -81 -35 176 210 -78 108,641 98,859 3,279 2,745 7,718 10,588 -19 -11 -41 -8 -21 -16 39 15 -14 29 54 13 CASTRO Dimmitt 10,394 4 ,327 27,447 -58 4 CHEROKEE Jacksonville 32,008 9,734 418,000 29 33,227 - 9 4 COLEMAN Coleman 10,288 5,608 0 COLLIN (In Dallas-Fort Worth SMSA) McKinney Plano 66,920 I 5, 193 17,872 87,500 3,242,630 19 -38 13 23,884 38,081 -20 -11 57 24 COLORADO Eagle Lake 17,638 3,587 7,754 -36 29 COMAL (In San Antonio SMSA) New Braunfels 24,165 17,859 351,542 65 -25 32,358 -16 15 COOKE Gainesville Muenster 23,471 13,830 1,411 168,415 -35 -38 30,096 4,677 -14 -18 21 6 CORYELL (In Killeen-Temple SMSA) Copperas Cove Gatesville 35,311 10,818 4,683 285,421 11 -52 7,589 13,009 -5 -16 II 14 CRANE Crane 4,172 3,427 24,000 -88 300 3,034 -23 DALLAS (In Dallas-Fort Worth SMSA) Carrollton Dallas Farmers Branch Garland Grand Prairie Irving Lancaster Mesquite Seagoville 1,327,321 13,85s 844,401 27,492 81,437 50,904 97,260 10,522 55,131 4,390 2,461,660 18,419,116 1,766,351 3,286,338 5,634,859 7,093,677 176,200 115,715 I -17 64 -38 514 327 -88 190 -23 -14 -so -34 16 215 -80 191 46,031 17,416,735 25,650 101,801 39,635 128,891 9,559 40,337 13,518 -9 -9 -12 •• -14 -14 -22 6 -1 83 48 6•• 5 25 -25 21 53 DAWSON Lamesa 16,604 11,559 144,300 100 115 58, 198 -35 89 DEAF SMITH Hereford 18,999 13,414 252,100 -38 144 DENTON (In Dallas-Fort Worth SMSA) Denton Justin Lewisville Pilot Point 75,633 39,874 741 9,264 1,663 1,760,165 0 259 94 92,729 2,562 27,068 2,604 -14 -8 -19 -14 19 56 -8 -13 Urban building permits Bank debits COUNTY City Population Feb 1974 (dollars) Percent change from Jan Feb 1974 1973 Feb 1974 (thousands of dollars) Percent change from Jan Feb 1974 1973 DE WITT Yoakum (See Lavaca) 18,660 EASTLAND Cisco 18,092 4,160 5,212 -11 -25 ECTOR (Constitutes Odessa SMSA) Odessa 91,805 78,380 1,774,770 -55 33 ELLIS (In Dallas-Fort Worth SMSA) Midlothian Waxahachie 46,638 2,322 13,452 83,300 40,725 -46 12 -74 3,940 25,316 -15 -27 13 1 EL PASO (Constitutes El Paso SMSA) El Paso 359,291 322,261 7 ,067,263 -49 -41 1,042,950 -15 31 ERATH Stephenville 18,191 9,277 2, 167,647 850 22,443 -18 21 FANNIN Bonham 22,705 7,698 87,600 399 - 23 18,184 -16 20 FAYETTE Schulenburg 17,650 2,294 77,500 112 187 FORT BEND (In Houston SMSA) Richmond Rosenberg 52,314 5,777 12,098 122,700 242,623 -20 2 -25 70 23,232 13,486 1 -23 34 14 GAINES Seagraves Seminole 11,593 2,440 5,007 0 39,600 -34 5,308 21 ,221 -31 -33 17 34 GALVESTON (Constitutes Galveston-Texas City SMSA) Dickinson Galveston La Marque Texas City 169,812 10,776 61,809 16, 131 38,908 736,450 765,952 273,994 537,441 91 -70 100 -17 68 -27 24 18,726 194,989 22,306 49,747 -13 -11 6 1 16 14 ** 18 GILLESPIE Fredericksburg 10,553 5,326 46,689 -96 -66 21,822 -20 9 GONZALES Nixon 16,375 1,925 0 GRAY Pampa 26,949 21 ,726 40,550 -15 -65 49,041 -33 12 GRAYSON (Constitutes Sherman-Denison SMSA) Denison Sherman 83,225 24,923 29,061 125,784 232, 145 -63 -33 -22 -55 33,865 75,709 -18 -22 9 10 GREGG (In Longview-Marshall Metropolitan Area) Gladewater Kilgore Longview 75,929 5,574 9,495 45,547 47,800 143,680 8,698,500 245 179 -3 40 307 7,323 25, 169 127,711 -29 -9 -24 24 9 13 GUADALUPE (In San Antonio SMSA) Schertz Seguin 33,554 4,061 15,934 1,074,428 382,500 72 40 399 66 3, 735 33,339 -2 -12 101 11 Urban building permits Bank debits COUNTY City Population Feb 1974 (dollars) Percent change from Jan Feb 1974 1973 Feb 1974 (thousands of dollars) Percent change from Jan Feb 1974 1973 HALE Hale Center Plainview 34,137 1,964 19,096 32,100 2S3,SOO -7S 99 86,681 -4 8 13 HARDEMAN Quanah 6,79S 3,948 2,SOO -9S 10,76 S -30 4 3 HARDIN (In Beaumont-Port Arthur-Orange SMSA) Silsbee 29,996 7,271 19,120 6 39 HARRIS (In Houston SMSA) Baytown Bellaire Deer Park Houston Humble La Porte Pasadena South Houston Tomball 1,741,912 4 3,980 19,009 12,77 3 1,232,802 3,278 7,1 4 9 89,277 l l ,S2 7 2,734 3,810,860 88,633 74 7,807 4S ,S9S ,124 7,000 3,000 720,899 4 9,730 9,000 -28 38 -38 -4 8 -9 S -7 221 819 -41 109 -lS -99 -98 -90 20 102,6 S3 76,800 2S,323 14,S09,S2S 18,080 6, S72 147,6 13 2 S,997 2 -18 -44 -11 -6 ** -12 -29 39 2 23 35 29 64 1 -8 HARRISON (In Longview-Marshall Metropolitan Area) Hallsville Marshall 44,84 1 1,038 22,937 14S,687 -88 -8 1 2,422 38,S72 27 -16 41 15 HASKELL Haskell 8,Sl2 3,6SS 4 ,100 lOS - 9 7,431 -54 21 HAYS (In Austin SMSA) San Marcos 27,642 18,860 153,374 -49 123 18,7S4 -13 6 HENDERSON Athens 26,466 9,S82 106,9SO - 8 -46 2S,783 -14 28 HIDALGO (Constitutes McAllen-Pharr-Edinburg SMSA) Alamo Donna Edinburg Elsa McAllen Mercedes Mission Pharr San Juan Weslaco 181,S3S 4 ,291 7,36S 17, 163 4,400 37,636 9,3 SS 13,043 1S,829 S,070 lS,313 30,400 49,000 198,1S4 23,41 s 1,197,774 4 8,000 238,467 107,291 1S7,3S 1 134 -29 17 3S SS 64 -2 -19 -so 39 -19 -34 12 -14 1 -93 172 6,810 8,386 40,8S6 11 , 113 114,230 13,403 31 ,189 9,4SS 7,938 2S,936 -2 8 -2 12 -6 -lS -20 -22 -19 -19 -12 17 41 22 1 26 27 21 11 35 17 HOCKLEY Levelland 20,396 l l,44S 283,3SO 4S 43,008 -46 17 HOOD (In Dallas-Fort Worth SMSA) Granbury 6,368 2,473 4,S42 -14 14 HOPKINS Sulphur Springs 20,710 10,642 20,0SO -S7 -86 40,224 4 17 HOWARD Big Spring 37,796 28,73S 1S3,21S -97 S6 101 , 118 -28 43 HUNT Greenville 47,948 22,043 S93,369 83 238 44,224 -lS 34 HUTCHINSON Borger 24,443 14,l9S 126,SOO 1S2 S3 Urban building permits Bank debits COUNTY City Population Feb 1974 (dollars) Percent change from Jan Feb 1974 1973 Feb 1974 (thousands of dollars) Percent change from Jan Feb 1974 1973 JACKSON Edna 12,97S S,332 23S,627 480 10,622 - 27 11 JASPER Jasper Kirbyville 24,692 6,2S 1 1,869 68,000 23,406 4,1 lS -- 18 3 12 14 JEFFERSON (In Beaumont-Port Arthur-Orange SMSA) Beaumont Groves Nederland Port Arthur Port Neches 244,773 llS,919 18,067 16,810 S7,371 10,894 1,411,226 SS9,S7 1 77,1S9 199,991 184,40S -62 271 -29 -27 2S -S2 272 -S7 -48 S41,684 23,403 16,929 100,689 23,0S7 ----- 16 12 13 16 20 40 16 4 11 lS JIM WELLS Alice 33,032 20,121 374,116 - 3 44 77,323 - lS S2 JOHNSON (In Dallas-Fort Worth SMSA) Burleson Cleburne 4S,769 7,713 16,01 s 42,970 210,400 137 -10 7 81 12,700 31,029 -- 18 26 21 19 KARNES Karnes City 13,462 2,926 2S,8SO -27 6,231 - 16 9 KAUFMAN (In Dallas-Fort Worth SMSA) Terrell 32,392 14,182 110,325 -60 -64 KIMBLE Junction 3,904 2,6S4 4,784 - 16 •• KLEBERG Kingsville 33, 166 28,711 262,237 S3 -41 31 ,794 - 24 16 LAMAR Paris 36,062 23,441 303,437 -7S 82 LAMB Littlefiell:l 17,770 6,738 7,700 -76 17,176 - S8 37 LAMPASAS Lampasas 9,323 S,922 S6,l so -86 -59 13,730 - 26 3 LAVACA Hallettsville Yoakum 17,903 2,712 S,7 5S 12,07 S l 3,02S 13 -74 -61 -7S 6,936 16,S88 -- 32 12 13 6 LEE Giddings 8,048 2,783 78,200 24 412 10,621 - 11 14 LIBERTY (In Houston SMSA) Dayton Liberty 33,014 3,804 S,S91 324,800 64,SOO -60 3 S ll,87S 19,376 -- 38 16 4 S 9 LIMESTONE Mexia 18,100 5,943 60,950 48 13,S88 - 23 26 LLANO Kingsland Llano 6,979 1,262 2,608 6,SOO 6,832 10,595 -- 34 26 10 8 LUBBOCK (Constitutes Lubbock SMSA) Lubbock Slaton 179,29S 149,101 6,S83 18,700,230 10 284 787,93S 12, 117 -- 42 33 so S2 LYNN Tahoka 9,107 2,9S6 68,000 172 lS,1'56 - 39 60 Urban building permits Bank debits COUNTY City Population Feb 1974 (dollars) Percent change from Jan Feb 1974 1973 Feb 1974 (thousands of dollars) Percent change from Jan Feb 1974 1973 McCULLOCH Brady 8,571 5,557 402,230 125 894 12,678 -21 6 McLENNAN (Constitutes Waco SMSA) McGregor Waco 147,553 4,365 95,326 51,200 2,845,472 115 25 49 6,596 351,259 -18 -17 -10 6 MATAGORDA Bay City 27,913 11,733 36,000 -44 -78 35,910 -13 28 MAVERICK Eagle Pass 18,093 15,364 520,457 60 950 17, 192 -15 MEDINA Castroville Hondo 20,249 1,893 5,487 1,880 100 - 96 2,281 6,927 -28 -16 -14 22 MIDLAND (Constitutes Midland SMSA) Midland 65,433 59,463 968,522 -92 -67 245,530 -23 30 MILAM Cameron Rockdale 20,028 5,546 4,655 193,330 177 310 10,194 10,207 -23 -15 14 II MILLS Goldthwaite 4,212 1,693 7,752 -26 7 MITCHELL Colorado City 9,073 5,227 9,683 -36 29 MONTGOMERY (In Houston SMSA) Conroe 49,479 11,969 452,479 -16 -26 64,301 -26 9 MOORE Dumas 14,060 9,771 258,600 - I 2 NACOGDOCHES Nacogdoches 36,362 22,544 340, I 53 75 -69 NAVARRO Corsicana 31,1so 19,972 230,970 240 -32 47,347 -25 15 NOLAN Sweetwater 16,220 12,020 10,750 -95 -97 27,777 -32 9 NUECES (In Corpus Christi SMSA) Bishop Corpus Christi Port Aransas Robstown 237,544 3,466 204,525 1,218 11,217 4,000 5,389,703 96,780 -90 89 -13 -14 2,459 868,723 928 22,083 -20 -4 -24 -16 -23 59 -6 23 ORANGE (In Beaumont-Port Arthur-Orange SMSA) Orange 71,170 24,457 154,479 -19 79 59,473 -26 -6 PALO PINTO Mineral Wells 28,962 18,411 100,500 175 - 25 33,988 - 10 19 PANOLA Carthage 15,894 S,392 54,000 238 8,836 -14 19 PARKER (In Dallas-Fort Worth SMSA) Weatherford 33,888 11,750 128,575 399 63 30,378 - 14 3 PARMER Friona 10,509 3,111 10,000 -93 -91 38,471 -41 17 Urban building permits Bank debits COUNTY City Population Feb 1974 (dollars) Percent change from Jan Feb 1974 1973 Feb 1974 (thousands of dollars) Percent change from Jan Feb 1974 1973 PECOS Fort Stockton 13,748 8,283 l 3,3SO -97 -63 16,419 - 17 - 13 POTTER (In Amarillo SMSA) Amarillo 90,Sl 1 127,010 3,676,910 -20 48 7S3,488 - 2S 16 RANDALL (In Amarillo SMSA} Amarillo (See Potter) Canyon S3,88S 8,333 106,620 296 310 20,832 - 2S 30 REEVES Pecos 16,S26 12,682 18,7SO 48 22 32,720 - 34 17 REFUGIO Refugio 9,494 4 ,340 2,800 -89 6,613 - 31 2S RUSK Henderson Kilgore (See Gregg) 34,102 10,187 77,7SO -SS 17 32,712 4 26 SAN PATRICIO (In Corpus Christi SMSA} Aransas Pass Sinton 47,288 S,813 S,S63 61 ,SOO S0,747 7 832 2S 14,661 13,912 -- 9 23 38 S6 SAN SABA San Saba S,S40 2,SSS 6,900 -9S -S7 11,000 - 33 7 SCURRY Snyder 1 S,760 11,171 9 l,7SO - 3 17 27,S99 - 24 16 SHACKELFORD Albany 3,323 1,978 2S,OOO -37 4, 111 - 17 2S SHERMAN Stratford 3,6S7 2, 139 37,200 -40 44 l 9,8S7 - 4S - 8 SMITH (Constitutes Tyler SMSA) Tyler 97,096 S7,770 l ,230,9SO -86 -39 218,837 - 24 s STEPHENS Breckenridge 8,414 S,944 3,000 -9S -89 SUTTON Sonora 3,l 7S 2, 149 1,672 -8S 4,7S9 - 29 19 TARRANT (In Dallas-Fort Worth SMSA} Arlington Bedford Burleson (See Johnson) Euless Fort Worth Grapevine North Richland Hills White Settlement 716,317 90,643 10,049 19,316 393,476 7,023 16,s14 13,449 363,SS8 82,680 6,316,40S lS0, 140 1,209,900 lS,137 -22 183 -27 76 89 -27 -S8 -86 -46 -16 103 48 140,476 14,600 13,366 2,S42,378 lS,001 21,019 7,823 ------ 13 1 12 13 s 26 13 - 13 16 18 23 32 8 9 TAYLOR (In Abilene SMSA} Abilene 97,8S3 89,6S3 819,34S -13 2 264, 132 - 23 34 TERRY Brownfield 14,118 9,647 1S6,300 -82 294 39,106 - 44 lS TITUS Mount Pleasant 16,702 8,877 290,03S - s 7S 31 ,008 - 11 21 TOM GREEN (Constitutes San Angelo SMSA} San Angelo 71,047 63,884 l,Sl9,22S - 1 184,2S6 - 24 18 Urban building permits Bank debits COUNTY City Population Feb 1974 (dollars) Percent change from Jan Feb 1974 1973 Feb 1974 (thousands of dollars) Percent change from Jan Feb 1974 1973 TRAVIS (In Austin SMSA) Austin 295,516 251,808 13,600,737 -27 -20 1,627,077 3 42 UPSHUR Gladewater (See Gregg) 20,976 UPTON McCamey 4,697 2,647 2,084 -15 -16 UVALDE Uvalde 17,348 10,764 262,323 73 -36 45,216 -4 43 VALVERDE Del Rio 27,471 21,330 241,480 -67 31,913 -22 12 VICTORIA Victoria 53,766 41,349 765,561 61 61 146,632 -15 23 WALKER Huntsville 27,680 17,610 368,300 289 - 65 33,667 - 7 2 WARD Monahans 13,019 8,333 26,500 -46 16,676 -11 31 WASHINGTON Brenham 18,842 8,922 374,239 -10 143 32,879 -19 10 WEBB (Constitutes Laredo SMSA) Laredo 72,859 69,024 102,550 - 7 -70 139,018 - 9 43 WHARTON El Campo 36,729 8,563 85,953 -68 -47 30,230 -33 34 WICHITA (In Wichita Falls SMSA) Burkburnett Iowa Park Wichita Falls 121,862 9,230 5,796 97,564 198,434 55,018 543,631 -77 -23 -74 13,358 5,330 309,164 -21 -14 -12 42 10 37 WILBARGER Vernon 15,355 11,454 111 ,700 -31 160 50, 150 -25 149 WILLACY Raymondville 15,570 7,987 49,400 119 - 30 14,849 -20 22 WILLIAMSON Bartlett Georgetown Taylor 37,305 1,622 6,395 9,616 295,950 211,545 30 208 -2 538 1,864 15,062 19,944 -30 -13 -27 31 20 20 WINKLER Kermit 9,640 7,884 2,900 -90 WISE (In Dallas-Fort Worth SMSA) Decatur 19,687 3,240 70,025 -88 9,360 -15 21 YOUNG Graham Olney 15,400 7,477 3,624 118,000 17,436 533 -53 -78 -97 8,822 -26 16 ZAVALA Crystal City 11,370 8, 104 76,589 -34 11,490 -10 34 •• Absolute change is less than one half of 1 percent• No data, or inadequate basis for reporting. TEXAS BUSINESS REVIEW BAROMETERS OF TEXAS BUSINESS (All figures are for Texas unle• otherwise indicated.) All indexes are based on the average months for 1967=100 except where other specification is made; all except annual indexes are adjusted for seasonal variation unless otherwise noted. Employment estimates are compiled by the Texas Employment Commission in cooperation with the Bureau of Labor Statistics of the U.S. Department of Labor. The symbols used below impose qualifications as indicated here: p-preliminary data subject to revision; r-revised data; *-dollar totals for the fiscal year to date; t-employment data for wage and salary workers only. Year-to-date averageFeb Jan Feb 1974 1974 1973 1974 GENERAL BUSINESS ACTIVITY Texas business activity (index) .. . ... .. .......... . ..... . ..... . . 192.9 167.6 188.6 171.4 Estimates of personal income (millions of dollars, seasonally adjusted) .. ...... . ........ . . .. .. $ 4,697p $ 4, 583p $ 4, 159r $ 4,640 $ 4, 172 Income payments to individuals in U.S. {billions, at seasonally adjusted annual rate) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,093.6p $ 1,087.oP $ 997.4r $ 1,090.3 $ 993.3 Wholesale prices in U.S. (unadjusted index) . .... ... . . ..... . . .... . 152.7 150.4 126.9 151.6 125. 7 Consumer prices in Dallas (unadjusted index) .. . ...... .. ... . .. . 139.6 127.7 Consumer prices in U.S. (unadjusted index) . .... ... ... . .... .. .. . . 141.5 139.7 128.6 140.6 128.2 Business failures (number) ....... . . . ... . . . . ..... . ..... . ... . . . 58 57 49 Business failures {liabilities, thousands) .. ... . ... .. ... . .......... $ $ 14,724 $ 3,290 $ $ 4 ,869 Sales of ordinary life insurance (index) .. ... . .. .......... ...... . 192.8 201.6 179.3 197.2 183.5 PRODUCTION Total electric-power use (index) .. ... . . . . ....... . .... . ....... . . 163.7P 165.6p 164.4r 164.7 160.6 Residential electric-power use (index) .. .. .. . . . ..... . .. . ..... .. . l 91.3p 202.3p 208.4r 196.8 206.0 Industrial electric-power use (index) ... . ... . .. ... . ... . .... . ... . 147.9p 151.3P 140.9r 149.6 138.3 Crude-oil production (index) ... ......... . ... ..... . .... . ... . . . 117.8p 122.4p 114.7r 120. 1 115.6 Average daily production per oil well {bbl.) ....... . . .... ... .. ... . 20.7 20.6 19.1 20.7 19.1 Crude-oil runs to stills (index) ......... . ... .. .......... .... .. . 102.9 113.6 117.8 108.3 119.3 Industrial production in U.S. (index) .. ..... .. .. ...... . ..... . .. . 124.8p 125.6p 12 3.4r 125.2 122.8 Texas industrial production-total (index) . .... .. .. ...... ... . . . . . 137.lp 138. 5P 134.6r 137.8 132.9 Texas industrial production-total manufactures (index) .. . .... . ... . 141.7p 143.7p 139.0r 142.7 137.4 Texas industrial production-durable manufactures (index) . . . .. ... . . l 59.2p 160.7P 154.1 r 160.0 151.6 Texas industrial production-nondurable manufactures (index) ... .. . . 129.0p 131.4p 128.2r 130.2 127.3 Texas industrial production-mining (index) ..... . ....... . ... .. . . 121.lp 121.4p 117.2r 121.3 116.5 Texas industrial production-utilities (index) ......... .. . .. .. . . . . . l 55.5p 15 5.2 p 159.lr 155.4 166.3 Urban building permits issued (index) . . ....... .. ... .. . .. .. . . .. . 169.1p 203.3p 171.lr 186.2 188.2 New residential building authorized (index) . . ... . ...... ... . . .. . . 159.4p 1 7 l.6p 203.3r 165.5 236. 1 New residential units authorized (index) ............... . ... . . . . 97.5p 1l9.3p 143.2r 108.4 180.9 New nonresidential building authorized (unadjusted index) ... . ... . 176.oP 239.3p 147.3r 207.7 149.7 AGRICULTURE Prices received by farmers (unadjusted index, 1910-14= 100) .. ... . .. . 577 580 413 579 400 Prices paid by farmers in U.S. (unadjusted index, 1910-14=100) ... .. . 545 538 465 542 462 Ratio of Texas farm prices received to U.S. prices paid by farmers .... . ..... . .... ........ . ....... .... . . ... .. ... . 106 108 89 107 87 FINANCE Bank debits (index) .. .... . ... . . ................ . . ... . ..... . 294.4 277.1 212.6 285.8 215.3 Bank debits, U.S. (index) . . .. .. . ................. . .... . .. . . . . 241.7 254.5 216.5 248.1 212.9 Bank Commercial Loans outstandin g (index) .. . .. . .. ........ . . .. . 163.1 167.0 150.9 165.1 149.0 Reporting member banks, Dallas Federal Reserve District Loans (millions) .... . ....... .. .. . . . .. . ................... $ 9,968 $ 9,898 $ 9,058 $ 9,933 $ 8,950 Loans and investments (millions) ..... ... ... ........ .. .. .. .. . $ 14,005 $ 14,080 $ 13,025 $ 14,043 $ 13,000 Adjusted demand deposits (millions) . . . . .... . , . .. . . . . : . ....... $ 4,241 $ 4,078 $ 4,239 $ 4,160 .$ 4,244 Revenue receipts of the state comptroller {thousands) . . .. .. . ..... .. $ 544,287 $ 358,212 $ 437,582 $ 451,250 $ 384,106 Federal Internal Revenue collections {thousands) ... ........ . . .... $ 766,379 $1,397,212 $ 857,559 $7,052,482. $6,324,141 * Securities registrations-original applications Mutual investment companies {thousands) .... . . ... . .. .. ..... . . $ 27,198 $ 23,020 $ 79,556 $ 169,679* $ 262,472* All other corporate securities Texas companies {thousands) .... .. . . . ... . ...... . . ......... $ 11,406 $ 49,100 $ 32,309 $ 139,762* $ 167,456* Other companies (thousands) .. . . .. ... .... . . . .. . .... ... . .. . $ 6,007 $ 3,813 $ 10,270 $ 72,809* $ 132,405* Securities registration-renewals Mutual investment companies {thousands) ........... .. . . . . .... $ 33,014 $ 69,469 $ 58,346 $ 239,608* $ 249,968* Other corporate securities (thousands) .. ...... . . ......... ..... $ 0 $ I, 124 $ 0 $ 12,599* $ 1,360* LABOR Total nonagricultural employment in Texas (index)t ... .. .. ....... . 132.1 p 131.7P 124.9r 131.9 124.3 Manufacturing employment in Texas (index)t . . . .. ... ... .. . .. ... . 123.2p 12 3.4p 117.8r 123.3 117.5 Average weekly hours-manufacturing (index)t ... .... ..... . .. . .. . 98.8p 101.2p 98.8r 100.0 96.2 Average weekly earnings-manufacturing (index)t ..... . . .. ....... . 143.4p 147.7p 136.2r 145.6 130.7 Total nonagricultural employment (thousands)t .............. ... . 4,253.lp 4,233.7P 4,014.6r 4,243.4 3,994.9 Total manufacturing employment {thousands)t .. .... .... . .. .. . . 809.4p 807.6p 774.3r 808.5 770.2 Durable-goods employment {thousands)t ... . .......... . . ... . . 443.7p 442.5p 421.5r 443.1 418.5 Nondurable-goods employment {tho usands)t .. ...... . .. . ..... . 365.7p 365. 1 p 352.8r 365.4 351.7 Percent of total labor force une mployed .... .... ..... .... . . . . . 3.7P 3.8P 3.6r 3.8 3.6 Total civilian labor force in selected labor-market areas {tho usands) . ..... . ...... .. .. . ............ .. .. ... . . . Nonagricultural employment in selected labor-market 3,846. 5 3,831.5 3,689.8 3,839.0 3,678. 7 areas (thousands) .... . ... ... . ..... .. . ... .. ......... ... .. . Manufacturing employment in selected labor-marke t 3,414.9 3,403.1 3,269.6 3,409.0 3,2 52.8 areas (thousands) ... .. ... . .. . . .. .... .. .. . . . .... . . ..... : .. 669.0 665.0 638.2 667.0 635.7 Total unemployment in selected labor-market areas (thousands) .... .... . . . . . ....... . .. ....... . . .. . .. . . .. .. . 136.2 142.2 135.3 139.2 140.4 Percent of labor force unemployed in selected labor-market areas ..... . .. . .... . .. . . . . ..... . . ... . ...... . . 3.5 3.7 3.7 3.6 3.9 BUREAU OF BUSINESS RF.SEARCH RETURN REQUESTED THE UNIVERSITY OF TEXAS AT AUSTIN SECOND-CLASS POSTAGE PAID AT AUSTIN, TEXAS AUSTIN, TEXAS 78712 PROSPECTS FOR THE U.S. ECONOMY: GROWTH OR STAGNATION? by Gardner Ackley The Bureau of Business Research is pleased to publish, as Number 5 in the Richard J. Gonzalez Lecture Series, Prospects for the U.S. Economy: Growth or Stagnation ? by Gardner Ackley. This lecture series of the Graduate School of Business was named in honor of Richard J. Gonzalez, a former faculty member of the Department of Economics of The University of Texas at Austin and an outstanding business leader in the state. A native of Texas, Dr. Gonzalez received his A.B., M.A., and Ph.D. degrees from this University. He taught at the universities of Texas and of New Mexico, leaving the academic field to become an economic adviser for Humble Oil and Refining Company. He was treasurer of Humble from 1953 to 1959 and a director from 1951 until his retirement. It is in recognition of Dr. Gonzalez's many contributions to the business field and his continuing interest in academic progress that this lecture series is named. Dr. Gardner Ackley, who delivered the Gonzalez lecture for the 1973-197 4 academic year, holds the Henry Carter Adams University Professorship of Political Economy at The University of Michigan. He is a graduate of the Western Michigan University in Kalamazoo and the University of Michigan. His academic career has been interrupted repeatedly by government service-in the Office of Price Administration, the Office of Strategic Services, the Office of Price Stabilization, and as a member and chairman of the President's Council of Economic Advisers. Dr. Ackley was a Fulbright Research Scholar at the University of Rome; he spent a year in Italy on a Ford Foundation grant; and he returned to Italy to serve as United States Ambassador from March 1968 to September 1969. He is a prolific writer in the fields of economic stabilization, growth, unemployment, and inflation and has written on the economy of Italy and Japan. 19 pp. (Texas residents add$. 05 tax.) $1.00 . Bureau of Business Research Graduate School of Business The University of Texas at Austin