TEXAS BUSI NESS REVIEW A MONTHLY SUMMARY OF BUSINESS AND ECONOMIC CONDmONS IN TEXAS BUREAU OF BUSINESS RESEARCH COll.EGE OF BUSINESS ADMINISTRATION THE UNIVERSITY OF TEXAS VOL. XXV, No. 3 APRIL 1951 H I G H L I G HTS MARCH 1951 COMPARED WITH MARCH 1950 Crude petroleum production_ _____________________________ _ Bank debits.----------------·········----------······-·········-···----­Industrial electric power consumption.................. Crude runs to stills.................................................. Electric power consumption.................................. Postal receipts........................................................ Retail sales............................................................ Miscellaneous freight carloadings......................._ Value of building permits....................................... MARCH 1951 COMPARED WITH FEBRUARY 1951* Bank debits............................................................. Miscellaneous freight carloadings......................... Crude runs to stills.................................................. Crude petroleum production............ ---------·········-· Postal receipts........................................................ Bectric power consumption.................................. Industrial electric power consumption.................. Retail sales............................................................. Value of building permits....................................... 0 F T E X A S BU S I N E S S PERCENT INCREASE PERCENT OECREAS£ 20 30 40 5020 PER:ENT DECf!EASE 10 50 *All percent changes are obtained from seasonally adjusted indexes. TWENTY CENTS PER £'.OPY TWO DOLLARS PER YEAR The Business Situation in Texas The composite index of Texas business compiled by the Bureau of Business Research advanced from 229 in February to 235 in March, after a sharp decline of 6% in February. This level of 235 was still 4.1 % below the peak of 245 reached in December 1950. In spite of the rise during the month of March, there is still doubt that the level of Texas business will in the near future exceed the record volume of last December. A number of factors are developing which suggest that about the best that can be expected is for business to continue at the present levels; several elements in the present situation suggest that there may be more declines in certain phases of business. After adjustment for seasonal variation, all of the components of the composite index, except building, advanced during March. The table below gives details of the index components and their changes from Febru­ary. The gains of all components except building were relatively consistent, ranging from 2% in retail sales to 6% in carloadings, petroleum production and crude runs to stills. INDEX OF BUSINESS ACTMTY IN TEXAS, AND COMPONENT SERIES, 1935-39=100 (adjusted for 1easonal variation) March February Percent Serieo Wei&ht 1951 1951 change Retail sales, adjusted for price changes ----------47.7 209• 205 2 + Industrial power consumption 14.8 413 401 3 + Crude oil runs to stills_____ 4.5 203 192 6 + Electric power consumption___ 3.0 458 446 3 + Miscellaneous freight carloadings -------------17.6 143 135 6 + Urban building permits, adjusted for price changes_ 3.8 197° 2rn• -10 Crude petroleum production_ 8.6 219 206 6 + INDEX OF BUSINESS ACTIVITY (Composite)___ 100.0 235° 229• 3 + •Preliminary. One of the most significant aspects of the business situ­ation at the present time is the slowing in consumer dt­mand for some types of goods. Retail sales for March rose 2%. Nondurable-goods stores registered all of the increase, for there was a decline of 3% in durable goods stores. Since people generally buy new clothes for Easter, the date of Easter may have a decided effect on the sales of department and apparel stores. An early Easter, for example, would be expected to increase March sales at the expense of April. In adjusting the sales data of department and apparel stores for seasonal variation, the Bureau of Business Research attempts to take into account the influence of the date of Easter. When Easter comes in March, the normal seasonal rise in department store sales is computed to be 29%, and the normal seasonal rise for apparel stores, 33%. This year, March sales of department stores rose 37% over February and sales of apparel stores rose 39%, which indicates that business in March was better than in February after making allowance for the effect of the early date of Easter on March sales. This improvement in sales in compari­son with February was great enough to push the sales of nondurable-goods stores above the level of February, although the index is still below the January l->.AH BUSINESS RRvlEW ;. publi•herl by the Jlurenu of Buaineee Reiearch, College of Buslneae Administration, The Unlv81'11tJ 01 Texas. Entered as second-class matter on May 7, 1928 at the post office at Austin, Texas, under the act of August 24, 1912. to remain high, although there is some shift in demand from new houses to houses already constructed. Retail sales estimates for Texas durable-goods stores lend sup­port to the conclusions of the Federal Reserve Board. Sales of automotive stores in March increased 8% from February, but this was considerably less than the normal increase of 18%. Used-car dealers over the state are suffering particularly heavy declines in sales. Sales of furniture and appliance stores were up 9% from February to March, but the normal seasonal increase is 16%. The reasons for this slackening in sales of goods to consumers are all related to the changes in the amount of consumer income, savings and credit. The two waves of buying that have occurred since the beginning of the Korean war appear to have supplied the consumer with a large store of goods, reduced his available money and increased his debt. Tightening of credit terms has made it more difficult for the consumer to finance his purchases. There is no information available on consumer credit outstanding in Texas; however, for the United States the volume of instalment credit outstanding has declined since the end of December when an all-time high was established. The Bureau's data on credit sales of depart­ment and apparel stores indicates a reduction in the amount of credit extended in March, and also that the ratio of credit sales to net sales was lower in March 1951 than in March 1950. The ratio of collections to accounts outstanding increased in March, although the ratio was considerably below that of March 1950. The building industry, one of the major supports of the present high level of business activity, continued to show signs of weakness in March. After adjustment for seasonal variation the Bureau's index of building permits issued in Texas cities declined 10% to bring it to 399% of the 1935-39 base period. This is the lowest point for the index since April 1950 when it was 384, and March was the third consecutive month of decline for the index. In December 1950 it was 664, so the three-month decline represented a reduction of 4.0%. For the United States total new construction increased in March over February, after adjustment for seasonal variation, although residential building declined. Both private-nonresidential and government building increased enough to bring the total above February. The rise in public construction was 14%. Probably the most dynamic portion of the Texas economy at the present time is represented by expendi­tures of businesses for new plant and equipment. Natural gas pipe lines, electricity-generating plants, factories and commercial buildings are being built at an unprecedented rate. The F. W. Dodge figures comparing the value of construction contracts awarded in Texas during the first two months of 1951 with that of the same period of 1950 show that the value of commercial buildings increased more than seven times, manufacturing buildings almost two and one-half times and all nonresidential buildings more than three times. The value of contracts awarded for additions, alterations and repairs of manufacturing buildings during the first two months of 1951 was nearly 20 times as great as during the same two months of 1950. Data collected by the Securities and Exchange Com· mission and the Department of Commerce indicate that in the second quarter of 1951 expenditures for new plant and equipment in the United States will set an all-time record. It is estimated that the rate of expenditure for the second quarter of 1951 will be 40 % higher than in the second quarter of 1950, just prior to the beginning of the Korean war. If plans for expansion are carried through, the year 1951 will far exceed any previous year in the volume of business expenditures for investment. All of the information available indicates that investment in business concerns in Texas is at a rate that certainly equals and probably exceeds the rate prevailing in the rest of the country. Manufacturing activity in Texas showed a substantial rise during March, according to the Bureau's index of industrial power consumption. This index serves as an over-all measure of industrial activity since changes in industrial production may be expected to cause changes in the amount of power consumed. A rise of 8% in the index of industrial power consumption brought it to 413% of the 1935-39 base period, the same level estab­lished as an all-time high in November 1950. That part of the manufacturing industry of the state which is directly affected by the rearmament program, accounts for the persistent gain in this phase of the economy. The operations of refineries reached a record-breaking high during March, when the Bureau's seasonally adjusted index rose to 203% of the 1935-39 average. The index of crude petroleum production also set a new record, reaching 219% of the 1935-39 base. The price situation continues to occupy the spotlight, with many businessmen holding that inflation is the biggest problem facing the economy at the present time. Prices continued to rise during March, but the rate of increase in the weekly wholesale price index of the Bureau of Labor Statistics was much less than for earlier months. For the week ending March 6 the index stood at 183.5, and for the week ending March 27 it was 183.9; the price of foods dropped from 188.9 to 187.3 during the same period. INDEX OF BANK DEBITS IN TEXAS ADJUSTED FOR SEASONAL VARIATIC\'( 1935·39•100 Percent -700 700 06 - I" .r ~ · & Ir'"" - N v ,... 6 00 600 ~o 00 300 200 100 I00 0 0 839 1940 1941 1942 19 4 3 l:;il'"t.. 0;;1-.., ...-.v ... ~~ 19:>0 19:)1 The Bureau's index of bank debits rose 8% in March to carry the index to a new high of 635% of the 1935-39 base. The chart above shows the course of this index, which has followed closely the pattern of the composite index of business activity, reflecting the value of business transacted at current prices. The index of business activity has the effects of price changes removed and is a measure of the physical volume of business activity. TRADE Retail Trade (The movement of goods Into the hands of consumers is one of the fundamental series of atatistical data on business activity, since for business to be sound the volume of retail trade must be good. During a period of inflation an increase in sales in cun-ent dollars results from a rise in prices as well aa from an increase in the amount of business. The fluctuations in retail credit ratios are im­portant conditionin&' factors of the volume of trade. Newspaper advertiain&' linage and postal receipts are aecondary trade indicators.) Current weeks are showing some "recession from extremes." The "scare" buying of last summer and the more calculated "anticipatory" buying of January and February set up unusually high volumes seasonally and undoubtedly borrowed from future months. Against these volumes, March business appears a bit disappoint­ing, especially when adjusted for the early Easter and checked on a basis of unit sales. Some easing has ap­peared in the intensity of inflationary pressure. Credit controls are more obviously having their effect on sales. Our huge productive capacity has been issuing a flow of goods that, despite military conversion cutbacks, re­mains large by earlier standards. Possible over-estimates from manufacturers, middlemen's fears of shortages, complacent reassurance among customers, and increasing buying resistance, especially to high prices, have con­tributed to the building up of heavy inventories at all levels. Employment is seasonally high; but the shortage of suitable employees that was feared earlier has not yet matured. Pressure for added income taxes and excises has lost some force and urgency, and customers appar­ently can expect somewhat less tax pressure on most of 1951 incomes. INDEX OF TEXAS RETAIL SALES ADJUSTED ,FOR SEASONAL VARIATION 193~·39• IOO Ptr~t 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 The rate of conversion to military production appears lo have slowed or fallen behind expectations. Conse­quentl y, most lines of durable goods are available m larger supply than anticipated. Stocks of soft lines are ample. Strong sales promotions are indicated for whit­tling down the large retail stocks. Inventory liquidations, even another "inventory recession," might be possible but are not probable. Many retail buyers have slowed their purchasing and reduced their commitments. Especially in some soft lines producers are well stocked m expectation of heavy orders that are not maturing. Some are said to be under firm pressure from banking interests to liquidate overstocks and retrieve safer finan­cial positions. Any price weakness will probably be only temporary. ESTIMATES OF TOTAL RETAIL SALES (in millions) Percent change Type of store Mar 1951 Jan-Mar 1951 Mar 1951 from Mar 1950 Mar 1951 Jan-Mar 1961 from from Feb 1951 Jan-Mar 1960 TOTAL .............. Durable goods.... Nondurable goods $596.6 243.2 353.4 $i,668.8 694.8 974.0 + 8 + 8 + 13 + 17 + i4 + 20 + 12 +18 + 11 Ther~ is no P.resent reas~n to expect that sales through June will be either unsatisfactory or exceptional. Ad­justments in a "conversion economy" will continue at varying speeds in different lines as military goods "on order" begin to flow from production lines. Then cus­tomers' incomes, fattened by governmental exp.enditures, will increase as supplies of consumer goods, especially in hard lines, gradually decrease to lower but not threat­ening levels. Barring war developments, business should be "good" during later 1951 as incomes rise, prices be· come firmer and inflationary pressures probably strengthen. Operation on a controlled "plateau" appears likely for 6 to 20 months ahead. Since we are producing more goods and services than ever before in peacetime, wholesalers and retailers are not eager to stock ahead at current high prices. Especially is this true since the degree and in· tensity of rises in both wholesale and retail prices have lessened in recent weeks. "Stabilized" prices under con· trolled conditions appear to be "just over the hill." All types of retailer reporting experienced sales rises in March from February's somewhat low figures. These increases varied from 5% (liquor stores) to 73% (shoe stores) . Excepting furniture stores (-3%) and liquor stores (-7% ), all lines reported increases over March 1950. While various lines gained from the early Easter (florists, 35%; apparel stores, 17%; jewelers, 23%), the largest gains were registered for office, store and school supply dealers (40%) and farm implement dealers (38%). For the three months January-Mardi, RETAIL SALES TRENDS BY KIND OF BUSINESS Source: Bureau of Business Research in cooperation with the Bureau of the Census, U. S. Department of Commerce Percent change Number of ----------­ reporting Mar 195i Mar 1951 Jan-Mar i961 Kind of establish-from from from business ments Mar i950 Feb i951Jan-Mar1960 Apparel stores ............______ 245 + 17 + 39 + 17 Automotive stores ··­---·---·--­223 Country general stores _ _.___ 50 Department stores ..........._,___ 78 Drug stores ............................___ i44 Eating and drinking places.._ io2 Filling stations ------------·­774 Florists ------------------·­·­-----­42 Food stores ..........________ 227 + 2 + 14 + 8 + 8 + 17 + 5 + 35 + 16 + 8 + 2i + 37 + 7 + i4 + 11 + 41 + i3 +u + 12 + 12 + 8 + 9 + 10 + 8 +16 Furniture and household appliance stores --·-­144 General merchandise stores_ 136 Jewelry stores ----------­34 Liquor stores ·---·--·--·-­28 -3 + 10 + 23 -7 + 9 + 34 + 9 + 5 + 8 + 12 + 18 +11 Lumber, building material and hardware stores ______ 280 + 10 + 25 +22 Office, store and school supply dealers -----­ 41i + 20 all types of retailer bettered their sales of the same period in 1950. Leaders were farm implement dealers (39%), office, store and school supply dealers ( 34%), lumber and building material dealers (2017< ), family clothing stores ( 19%) and hardware stores ( 187c) . Advertising linage in 30 Texas newspapers in March averaged 24% higher than in February and 37c above March 1950. This was the sixteenth consecutive month of linage increases over the same month of the pre­ceding year. Of these 30 papers, only two showed decreases from February but 15 slipped below a year ago. CREDIT RATIOS IN DEPARTMl!.NT AND APPAREL STORES (in percent) Claasiflcation Number of reporting stores Ratio of credit sales to net sales• Mar Mar 1951 1950 Ratio of collections to outstandingst Mar Mar 1951 1950 ALL STORES -·-­-- ·-----------­-·-74 65.3 66.0 47.5 50.5 BY CITIES Austin ---­-­-------­----·---·····---­ 7 59.2 56.7 55 3 58.1 Bryan ··················­···· 3 55.6 49.7 46.5 48.2 Cleburne --······--­-----­----------­-----­ 3 45.4 45.6 49.9 47.0 Corpus Christi ·········--···-----··· 3 58.2 59.7 44.4 51.4 Dallaa --- ---------- ----­-----­--------­-­ 14 73.0 73.4 45.8 51.3 El Paso --­---­------·------­------------­--­ 3 57.4 57.0 38.1 40.2 Fort Worth ····----------­···------­--· 5 63.1 63.0 53.6 51.1 Galveston -·····----· ·-­-------­-------­-­ 60.6 68.9 53.1 53.0 Houston --­·· ···· --------­··­·····­··--­ 55.1 51.6 53.4 54.4 Lubbock --­-----­----­--­------------­---­ 3 56.5 52.8 54.4 56.9 San Antonio -···---­ 58.5 66.5 50.3 49.8 Waco ---­-----­---·--·-------­-···-· · 3 64.1 61.9 60.1 62.3 DY TYPE OF STORE Department stores (over $1 million) ---------------------------·­·· 23 67.3 68.5 46.3 49.6 Department stores (under $1 million) ----···-·-····-----­ 8 55.0 54.0 44.3 38.0 Dry goods and apparel stores 6 70.6 69.9 58.6 54.5 Women's specialty shops 22 54.7 53.9 52.0 56.1 Men"a clothing stores .... 15 63.9 60.7 54.5 56.8 BY VOLUME OF NET SALES (1950) Over $3,000,000 . 18 68.5 68.8 46.3 50.l $1.500,000 to $3,000.000 12 59.3 63.5 51.8 52.8 1500.000 to $!,500.000 . 21 56.6 53.8 51.9 51.8 1250,000 to $500,000 17 52.4 49.1 51.8 48.3 Lesa than $250,000 ------·­·· 55.5 49.4 39.3 39.3 •Credit oales divided by net sales. tCobectiona during the month divided by the total account• unpaid on the first of the month. Currently revised to reflect the data furnished by the preliminary 1948 Census of Business, the newl y esti­mated index (429) of total sales (based on 1935-39 a nd adjusted for seasonal variation) recovered a few points from 421 of February. It still stood higher tha n earlier months other than July-September 1950 and the recent December-January. Deflated to remove the effects of price changes the adjusted total sales index crawled back lo 209 from 205 for F e bruary, standing below 13 of the most recent 26 months. The durable goods index (547) was down from Janu­ary-February figures (611-562) but remained above all but eight of the most recent 26 months. The index for nondurables (376) returned to D erember's high fig11re, above all the other months of 1949 and 1950. Re\'ise* Retail eales -------------------------­Department and apparel etore ea]es__ Postal receipts --------------·---------·$ Building permits ---------·­-----·$ Bank debits to individual accounts 47,724 1,081,109 + 18 + 18 + 11 -43 + 30 + 41 + 7 + 3 BEAUMONT: (pop. 93,715>* Retail sales ······-·····--······-------··-----··--··-····-·· Eating and drinking places ·-·-···· Furniture and household stores General merchandise stores ...... . + 5 + 11 + 13 + 25 + 20 + 23 + 18 + 69 (thousands) -------------------.$ End-of-month depoeits (thousands)*.... $ Annual rate of depoeit turnover.___ _____ Air express shipments ---·----·------------­Unemployment ---·-------------­-----­--··--·--···-Placemente in employment -·----·---··-----··-· Nonagricultural civilian labor force.... Percent of labor force unemployed________ 66,704 49,286 13.4 262 860 699 22,110 3.8 + 30 + 15 + 11 + 12 -6 + 22 + 16 -19 + 21 -6 + 24 6 6 + 7 + 2 7 Lumber, buildinir material and hardware stores ·----­-----­Department and apparel store sales..... . Postal receipts ··--------·-·-----·-··--··---------·$ Building permits ---·-····-··-···-··-···--·-··-··--·$ Air express shipments ....___________ ________ Bank debits to individual accounts (thousands) ---·--------·-······­··-------·$ 75,116 620,515 403 120,892 -29 + 23 + 11 + 17 + 13 + 24 -1 + 65 + 28 -24 -8 + 14 End-of-month deposits (thousands) • .... $ 89,607 - 1 4 AMARILLO: (pop. 73,737H Retail eales ···--------·-···----------------·­Apparel stores --------­--------------­Automotive stores ···--­·---·--····--·-·----· Furniture and household etore•­··-·----­ + 16 + 22 + 1 + 91 + 14 + 41 x + 24 Annual rate of deposit turnover........... . Unemployment (area) --·----·----·--···-­Placements in employment (area) ______ N onagricu]tural civilian labor force (area) ------·-··-----------­---­ 15.8 6,400 1,681 76,500 + 24 -26 + 39 + 1 + 16 s x + General merchandise stores ------··------­ -13 - 6 Percent of labor force unemployed Department and apparel store sales.___ Pootal receipts -·--·----·-·····­------------·-·--$ 99,333 + 19 + 7 + 36 + 27 (area) ·-··-·-·-···--­---­-----­Export cars unloaded -···--··-----···-·--­ 8.4 296 -- 27 13 3 +io1 Building permits ····--····-------------·--·--·-·--·$ l,665,160 + 2 -20 Air express shipments ---------------·-··-------·­Bank debits to individual accounts (thousands) --····-···--···-··----·····-···--·-·-$ End-of-month deposits (thousands)•____.$ Annual rate of depoeit turnover____________ Unemployment ----··---···------·-·----·--··--··-­Placements in employment ----··-·-·-···---·­ 525 137 ,397 97,198 16.7 1,350 1,433 9 + 31 + 6 + 25 -4 + 43 -13 + 13 -3 + 15 -18 + 37 BIG SPRING: (pop. 17,258)* Retail sales --------------­------------------­Department and apparel store sales______ Postal receipts -----------·­-·--­·----···----·-··$ 14,548 Air express shipments ------------------­64 P lacements in employment ----·-------------­181 + + + -+ 36 23 11 5 24 + 23 + 36 + 28 -33 + 56 Nonagricultural civilian labor force --· Percent of labor force unemployed_______ 37,760 3.6 + 3 -5 + 1 -18 BRADY: (pop. 5,923) * AUSTIN: (pop. 131,964>* Poetal receipts ---·--·--·-------­--···-$ Building permits --·-·-------···-···-··------' 3,525 83,850 3 8 + 16 +107 Retail sales ----------------------------·---··-··-··-· + 2 + 22 Bank debits to individual accounts Apparel stores --····-··-----······--··--------·­ + 36 + 58 (thousands) ····-·--·--·----·-·-·-·-·-··-·-··$ 5,197 + 15 + 25 Automotive stores ----------------------­ -18 -10 End-of-month deposits (thousands)•.... $ 7,356 + 6 -3 Eating and drinking places.. ·--·-·---··· + 7 + 21 Annual rate of deposit turnover___ _________ 8.3 + 8 + 28 Food stores ---------------­ + 57 + 18 Furniture and household stores____ Lumber, building material + 11 -18 BROWNWOOD: (pop. 20,140) * and hardware stores -------­ - 3 + 42 Retail sales ------·-·-······-·--··---·--····-·--··--­-­ + 12 + 35 Department and apparel store sales.... + 15 + 42 Department and apparel store sales______ + 29 + 58 Pootal receipts -·--·--·--·····---------$ Bnilding permits ----·-··-·-----·---------·$ 182,681 2,332,078 + 10 -2 + 13 -13 Poetal receipts -·-----····-·------··-·····-----··$ Bank debits to individual accounts 13,440 + 2 + 9 Air express shipments ------··-·---··­···-­ 634 + 25 x (thousands) --··-·--·----··-·---····--·-··--·-·$ 13,193 + 43 + 31 Bank debits to individual accounts End-of-month deposits (thousands)>.... $ 13,393 + 3 - 3 (thousands) --·-······---·------··-·--­ -··$ 166,303 + I5 + 10 Annual rate of deposit turnover. 11.6 + 35 + 32 End-of-month depoeits (thousands)*__.$ Annual rate of deposit turnover.__________ 116,527 17.4 + 2 + 14 + 4 + 10 Air express shipments ----··---­---···--·----­Placements in employment -··-·····--­········· 24 135 -33 -19 -35 + 4 Unemployment ------·--·--···-···-··-··-·······-Plaeements in employment ··--··-·-------------­Nonagricultural civilian labor force.... Percent of labor force unemployed.______ 1,686 1,350 48,386 3.5 -10 + 4 + 6 -15 6 + 25 x -6 BRYAN: (pop. 18,072)* Department and apparel store sales...... + 2 + 34 Air passenger traffic Postal receipts ····-·-··-··-·-·------··-­---·-····-·-··$ 11,439 -10 -2 Arrivals ----------­------·--·-­ 3,745 + 34 + 19 Building permits -·········-----···-·-··········-·--··-··$ 290,898 - 3 +112 Departures ···--·----·····-··--·---·-·--·-··------­ 3,915 + 29 + 2·5 Air express shipments ----------········--------­Placements in employment ···-·····-·­-·· 29 135 -- 9 38 0 + 8 BROWNSVILLE: (pop. 36,176H Retail sales ------------------­--­Department and apparel store sales___ Pootal receipts _____________ ____$ Buildin11: permits ----------··--·····---­-·$ Air express ahipments ·----·--··-------·­Placement& in employment -··--·-------····· Export cara unloaded --·-·--·-·­···-····­----··­Coutal cara unloaded ---·······-·-··-··-····-···­17,757 58,287 377 442 682 30 + 2 + 46 + 6 -88 -9 +115 +169 -36 + 20 + 63 + 14 -65 + 6 + 72 -7 +900 CISCO: (pop. 5,216) * Retail sales Postal receipts ·--·-····----· ···----··-·-----·--···-· .$ Bank debits to individual accounts (thousands) --·--· .... $ End-of-month deposits (thousands)• ...$ Annual rate of deposit turnover............ 3,419 2,274 3,835 7.2 + 36 + 14 + 16 + 20 -1 + 36 -3 + 13 + 4 + 7 •Excludes depoeita to credit of banks. •Excludes deposits to credit of banks. xChann ia less than one-half of one percent. xChange is less than one-half of one percent. tPre!iminary 1960 Census. tPreliminary 1950 Census. LOCAL BUSINE Percent change Percent change Mar 195 1 March from City and item 1951 Mar 1950 CORPUS CHRISTI: (pop. 108,053) * Reta il sales Apparel stores --­-­---------­-----------------------­Automotive stores Department stores! ----·­---­------­-------­-----­Eating and drinkin1< places --------­------­Food stores ---­----­-F urniture and household stores ......... I -umber, buildinit m aterial and hardware s tores Postal receipts --­---­_______ __ __ ______$ Building permits ------------­-----­__________ ________ $ 91,295 1,260,406 + 6 + 23 x + 13 + 22 11 17 + 21 + 12 -45 Mar 1951 from F eb 1951 + 17 + 98 + 4 + 32 + 13 + 2 + 33 + 13 55 City and item March 1951 DENISON: (pop. 17,444) * Depa rtment and apparel st ore sales Postal receipts __ _____ ___ --­----­---­----------­---­-_. $ Building permits ----------------------­-------­------. $ Ba nk debits to individual accounts 11,371 1,091,715 !thousands ) ------­---------·-----$ End-of-month depos its (thousands)• __ $ Annual rate of deposit tur nover............ Placements in employment . ··-··----­·-··-­---­DENTON : (pop. 21,345H Retail sales --­--­------------­---------­-------------------­9,239 11,760 9.6 319 Mar 1951 from Mar 1950 + s + I S +936 + 12 + 21 1 + 10 x Mar 196! from Feb 1961 + 77 + 9 +2870 x + + +31 Air express shipm ents ----······-·---------­---­-­Bank debits to individual a ccounts 41i9 + 9 48 Department and apparel st ore sales ___ ___ Postal receipts _______________________________________ __ __ _$ 16,001 + + - 61 s (thousands) ----------------­----------­------------$ End-of-month deposits (thousands )•__ __$ 129,004 92,753 + + 33 + 27 3 Building permits ---------­------------------------­____ $ Placements in em ploym ent -------------------­ 81,450 49 -li9 +29 + 8 -II Annual rate of deposit t urnover............ Unemployment ----­-------­--------------­---------------­P lacements in employment ___ Nonagricultur a l civilian labor force.... P ercent of labor force unem ployed________ Expor t cars unloaded ---------------------------­Water connections ---­-----­--­-----­---------------­ 16.4 2,500 l,409 56,700 4.4 69 28,794 + 28 -12 + 11 + 5 -17 -60 + 11 + 29 9 + 5 x 34 + EL PASO: (pop. 130,003)t Retail sales -------­----------------­--­-----------------­Apparel stores Automotive stores -------------­·---­----­------·--­Department storest ------------­----------­----­--­Furniture and household stores.___ ____ _ + 6 + 30 + 2 + 3 -17 + 18 + 61 + 6 + 21 -26 Electric connections 33,084 + 11 + Lumber, building material and hardware stores ----------­------­-----­ -25 + 61 CORSICANA: (pop. 19,108)t Postal receipts ------­-------­----------------------------­$ 11,973 Bank debits to individual accounts (thousands) --­-----------------­-----------­$ End-of-month deposits (thousands)•__ __ $ Annual rate of deposit turnover............ P lacements in employment ----------­----------­DALLAS: (pop. 432,927}t Retail s ales -­--·­---­----­---------------­--­---­---------­-12,266 21,355 6.8 160 + 15 + 20 + + 17 + 5 + 17 + 6 + 7 1 + 6 6 + 21 Postal r eceipts ---------------------­------­----­--------­$ Building permits -­- --­----------­--­----------------­--$ Air express shipments . ----------·---·-·········· Bank debits to individual accoun ts (thousands) ---------------------------­----­-------$ End-of-month deposits (thousands)•__ __ $ Annual rate of deposit turnover.....---···· Unemployment -------­--------­---------------­-----­----­Placements in employment ----­--­---------·­­N onagricultural civilian labor force ._ Percent of labor force unemployed 154,988 1,643,427 1,495 194,603 132,458 17.4 1,850 1,339 61,950 3.0 + 12 -44 + + 26 + 1 + 23 -31 + 19 + 15 -40 + 18 -14 _, 2 + 18 -3 + 20 -10 4 + Apparel stores -­ + 16 + 37 Automotive stores Department storest Eating and drinking places ----------­---­F illing stations ---------------------­----­ + 10 + 11 + 13 + 19 + 4 + 27 + 21 + 10 FORT WORTH: (pop. 277,047H Reta il sales ----------------­---------------------­-----­Apparel s tores -------------------------------------­Automotive stores ---­-----------­---· ·-----------­ + 9 + 17 -19 + 16 + 10 -17 Food stores ---­--------------­-------------------------­Furniture and household stores.......... General m erchandise stores ------­-----·­-­Lumber, building material and hardware stores -----·····------­---­-­ + 29 + 37 + 10 + 16 + 17 -1 + 29 + 38 Department storest ---­-------­------­---­--------­Eating and drinking places ----­----------­Filling stations ---------­--------····----­-----····-­Food stores --·· ··--­--­--­----­-----------------·····­--­General merchandise st ores ----­--------·-· + 9 + 8 + 6 + 27 + 9 + 26 + 4 + 10 + 18 + 28 Office, store and school supply dealers --------------------------------­Postal receipts ______ __ ____ ________________$ 1,153,413 Building perm its ----­--------------­---­-­-$ 8,020,504 Air express shipments --------­------------------­9,514 Bank debits to individual accounts (thousands) _____________ ____ __________ $ E'nd-of-month deposits (thousands)•___ $ A nnual rate of deposit turnover........ Unemployment ---­-------­--­P lacements in em ployment N onagricult ural civilian labor force .... Percent of labor force unem ployed________ 1,503,412 906,516 19.8 4,000 5,705 271,900 1.5 + 39 + 3 -18 + 27 + 30 + 14 + 14 -53 + 54 + 8 5G + 32 + 13 + 29 2 + 16 x + 16 11 + 29 + 1 -12 L umber, building m aterial and hardware stores -----­---------------·-··· Postal receipts -­---------------------­-----­--------­-----$ 424,267 Building permits -----------------------­------­--­-­----$ 5,538,588 Air express shipments -----­----------------­----­2,389 Bank debits to individual accounts (th ousands) ---­----­--­----$ End-of-month deposits (thousands )•----$ Annual rate of deposit turnover............ Unemployment -----------------­--­--­------­----·--­---­Placements in employment --------­---·········· Nonagr icultural civilia n labor force.... Percent of labor force unem ployed.­-----­482,085 347,088 17.0 5,000 5,647 153,200 S.3 + 29 + 3 + 26 + Sl + 34 + 18 + 20 -38 + 85 + 10 -42 + 24 + II -40 x + 24 + 6 + 28 -2 + 27 + 1 -8 DEL RIO: (pop. 14·,19l)t Depar tment and apparel store sales ...... P ostal receipts ----­-­-----­----------------------------·$ 5,938 + 3 -21 + 77 -17 HARLINGEN: (pop. 23,202H Postal receipts ------­--------------­--------­---------­$ 17,211 Buildin11: permits ---------------------------------­-----­$ 136,325 -1 -39 + s -20 Building permits ---­---------------­_$ Bank debits to individual accounts (thousands) _____ $ E nd-of-mon th deposits (thousands)•____$ Annual rate or deposit t urnover ____________ A ir express shipments _____ ------------­----···· 7,810 7,183 9,291 9.2 72 -82 + 89 -74 + 13 -2 + 16 -15 Bank debits to individual accounts (thousands) -----------------­--­--­--------------$ End-of-month deposits (thousands) • ____ $ Annual rate of deposit turnover............ Air express sh ipments ------------·----------­---­P lacements in employment ---------------------­ 22,575 18,638 14.1 76 286 + 16 x + 15 -1 +38 + 7 -· 6 + 14 -11 -66 *Excludes deposits to credit of banks. *Excludes deposits to credit of banks. xChange is less than one-half of one percent. xChange is less than one-half of one percent. tReported by the Federal Reserve Bank of Dallas. tReported by the Federal R eserve Bank of Dallas. tPrelimina ry 1950 Census. tPreliminary 1950 Census. CONDITIONS Percent change Percent change Mar 1951 Mar 1951 Mar 1951 Mar 1951 March from from March from from City and item 1951 Mar 1950 Feb 1951 City and item 1951 Mar 1950 Feb 1951 GALVESTON: (pop. 65,898) * LAREDO: (pop. 51,694)f Retail sales -­------­- -­ + 11 + 27 Postal receipts --------- -----------­--------...$ 20,516 + 12 + 23 Apparel stores - - - --­·-·­- - + 30 + 39 Building permits ---·····-··­-······--·-·········$ 27,750 -80 -86 Food stores ····----·-··­ ---------­ + 10 + 18 Bank debits to individual account.a Department and apparel store sales.._ + 17 + 45 (thousands ) ········-····---····-·······-$ 22,231 + 25 + 19 Postal receipts --··-·-··--·--­------$ 61,492 + 2 + 18 End-of-month deposits (thousands)•....$ 20,953 - 5 - 4 Building permits ··-······---­------$ 879,475 +159 +649 Annual rate of deposit turnover---·----­ 12.4 + 29 + 20 Air express shipments ---------­------­ 413 + 2 -15 Air express shipments ------------------­ 222 - 5 - 9 Bank debits to individual accounts Placements in employment ---------­ 274 + 27 + 26 (thousands) --···---­-------·-······­$ 83,766 + 16 + 23 Electric power consumption End-of-month deposits (thousands) *--S Annual rate of deposit turnover_________ 100,646 10.1 + 7 + 11 + l + 22 (thou. k.w.h.) ---------­----­--­---­Natural gas consumption 33,219 + 9 Unemployment (area) -·····--·-·······­Placements in employment (area) .___ 1,800 771 -44 + 88 0 13 (thou. cu. ft.) -------------­Tourists entering :Mexico -----------­ 60,270 8,238 + 21 1 -36 -19 Nonagricultural civilian labor force (area) -------------···-----­Percent of labor force unemployed (area) ---------­--Export cars unloaded ----··-··-····--­Coastal cars unloaded ·-···-----·-············­ 48,950 3.7 9,288 2,144 -5 -40 +n -19 x 0 + 15 + 29 Tourists cars entering Mexico__________ 2,924 LOCKHART: (pop. 5,531) * Postal receipts _____________$ Building permits --·-····-------·$ 3,103 52,050 + 11 + 29 + 93 -13 + 37 -55 Bank debits to individual accounts HENDERSON: (pop. 6,802)f Department and apparel store sales__ __ Postal receipts ----·-···-··­-···-···--·---$ Building permits __ ____________ $ Placements in employment -------­7,048 45,100 167 HOUSTON: (pop. 594,321) * Retail sales ---­----­----­---­Apparel stores ---­-­------­Automotive stores ---­----­ + 5 + 12 +111 + 27 + 13 + 8 x + 47 + 19 x + 16 + 14 + 28 + 10 (thousands) ··-··-···--·--··---$ End-of-month deposits (thousands) • _ $ Annual rate of deposit turnover___ 3,381 4,821 8.4 LONGVIEW: (pop. 24,445) * Postal receipts -------------$ Building permits _______ ______$ Air express shipments ------­Unemployment -------­------­21,025 622,336 177 1,175 + 15 + 5 + 11 + 7 + 13 -33 + 24 ][ + 25 + 4 + 87 + 6 -11 Department storest ····--------­ + 29 + 29 Placements in employment ---­----­ 620 + 49 + 63 Eating and drinking places -------­ + 18 + 19 Nonagricultural civilian labor force_ _ 22,925 + l 0 Filling stations ······---­ ---·-··--·· + 4 + 6 Percent of labor force unemployed_____ 5.1 - 34 -12 Food stores -----------­--­-­-Funiture and household stores____ __ _ General merchandise stores ______ + + 24 2 7 + 14 + 14 + 12 LUBBOCK: (pop. 71,390) * Liquor stores -····--­··-·--­­Lumber, building material and hardware stores --------­--­P08tal receipts -·····­·--­------····-··--··$ 758,981 6 + 54 + 5 x + 7 + 16 Retail sales ----------------­-·-·­Apparel stores ··-·····--------·······--­Automotive stores ------------------­Furniture and household stores........_. + 19 + 25 + 25 -34 + 17 + 64 + 5 -30 Building permits ---····-······--······-····---$17,135,607 Air express shipments ······-··-········-········ 5,613 Bank debits to individual accounts (thousands) -··············-·············-··· $ End-of-month depoeits (thousands)•....$ Annual rate of deposit turnover.....----­Unemployment (area) -·····---········-­Placements in employment (area) ······­Nonagricultural civilian labor force 1,500,669 1,064,999 16.7 7,500 5,518 + 58 + 22 + 31 + 12 + 18 -53 + 43 + 18 -5 + 23 -3 + 25 -10 + 23 General merchandise stores _________ Lumber, building material and hardware stores -----------------· Department and apparel store sales___ _ Postal receipts ····-··-··­·······--­-----$ 69,048 Building permits ·············------------­--$ 2,536,771 Air express shipments ········------------·· 446 Bank debits to individual accounts + 30 -7 + 30 + 32 + 22 + 35 + 35 -10 + 40 + 17 + 99 + 3 (area) ---------­----········­Percent of labor force unemployed 341,800 + 2 x (thousands) ····-----------------$ End-of-month deposits (thousands) • ....$ 100,802 96,958 + 26 + 12 3 2 (area) ---­ ----­--­····--·-·-····-­ 2.2 - 54 8 Annual rate of deposit turnover_____ 12.4 + 11 Export cars unloaded -············----··-···-· 6,492 + 67 + 31 Unemployment ····-········-·­---···--·­ 800 - 11 0 Coastal cars unloaded --­ --­ - - - 14 -22 -44 Placements in employment -----------­ 1,132 + 18 + 25 Nonagricultural civilian labor force___ 30,100 + 12 0 LAMESA: (pop. 10,706)* Percent of labor force unemployed........ 2.7 - 21 + 4 P08tal receipts ·-·······---­·­-······-----$ Building permits ----···-·-·-·-----­---$ Bank debits to individual accounts (thousands) -····-··-------------­$ End-of-month deposits (thousands)•___ $ Annual rate of deposit turnover_____ Placements in employment ---··-·-­-­Telephones in service --·-­--··-­···-···­Railroad carloadings : Inbound ------··--·­-------­Outbound --­--­---­-­6,066 211,550 13,845 18,967 8.5 232 2,564 112 110 -7 -40 + 38 + 5 + 31 + 18 + 12 + 11 +134 -2 +131 + 6 -7 + 16 + 12 + 2 5 + 6 LUFKIN: (pop. 15,147) * Postal receipts ······-··-···------­-----$ Building permits ------------$ Bank debits to individual accounts (thousands) -----­-··········-····$ End-of-month deposits (thousands)•....$ Annual rate of deposit turnover.._-···­Air express shipments ------­---·-----­Placements in employment ------­----­- 11,656 97,850 15,966 17,169 11.0 60 167 + 8 -41 + 27 -4 + 31 + 36 + 56 + 18 -51 + 28 -3 + 29 + 11 + 23 *Excludes depoeits to credit of banks. xChange is less than one-half of one percent. *Excludes deposits to credit of banks. tlleported by the Federal Reserve Bank of Dalla8. xChange is less than one-half of one percent. iPreiiminary 1950 Census. tPreliminary 1950 Census. TEXAS BUSINESS REVIEW LOCAL BUSINESS CONDITIONS Percent change Percent chann Mar 1951 Mnr 1951 Mar 1951 Mar 1961 M.arch from from March from from City and item 1951 Mar 1950 Feb 1951 City and item 1951 Feb 1951 Mar 1950 ====~============ ------ McALLEN: (pop. 20,005} * PORT ARTHUR: (pop. 57,377) * Retail sales ............................... 12 + 13 Reta il sales + 10 +81 Department a nd apparel store sales...... + 39 Eating a nd drinking places -2 + +28 Postal receipts ...$ 13,472 1 Food stores .............................................. + + + 14 +u lluildini:-permits ...................................... $ 86,525 -65 Lumber, building material Air express shipments ........ 53 + 2G lG and hardware stores ------------------·----+ 14 + 70 Placements in employment _ 355 -!-GI 10 Department and apparel store sales...... + 12 + 62 Postal receipts ............................................$ 29,926 1 + +16 MARSHALL: (pop. 22,255) * Building permits ····················-·················-$ 267,888 -44 + 1 Retaii sales .................................... + + 31 Air express shipments ····-----------------------­156 + 39 -16 Department and apparel store sales ..... + 14 + 58 Bank debits to individual accounts Postal receipts ........................................ ...$ 14,187 7 + 16 (thousands) ........................................$ 43,165 + 28 + 21 Building permits ........ ............................. $ 194,263 +129 -l-340 End-of-month deposits (thousands)•... $ 39,800 -1 -8 Bank debits to individual accounts 12.8 28 Annual rate of deposit turnover_______ ___ + +23 (thousands) ..................................... ..$ 13,270 + 20 + 25 Unemployment ·········-··················-·····------6,400 -26 End-of-month deposits (thousands)•....$ 19,150 + 3 + 27 Placements in employment ...................... 1,681 + 39 x Annual rate of deposit turnover___________ _ 9.3 + 33 + 26 Nonagricultural civilian labor force...... 76,500 1 + + Placements in employment -·----------··--------347 + 11 + 12 Percent of labor force unemployed.._.__ 8.4 -27 a Export cars unloaded .............................. 273 + 1 + 208 MINERAL WELLS: (pop. 7,763>* Coastal cars unloaded ····························-439 + 5 + 20 Retail sales ························-························ + 17 x Bank debits to individual accounts SAN ANGELO: (pop. 51,889H (thousands) ........................................$ 5,314 + 33 + 19 Retail sales + 4 18 ·····-·······----···················-·······-· + End-of-month deposits (thousands) • ....$ 12,462 + 67 + 39 Department and apparel store sales...... + 19 + 89 Annual rate of deposit turnover............ 5.9 -8 0 Postal receipts ·····················-··················-$ 40,046 + 19 + 21 Air express shipments ··-----------------····----­24 + 26 -33 Building permits ........................................$ 1,427,566 + 66 + 48 Placements in employment ----------------------122 -l-165 + 18 Air express shipments --------------------------­356 -2 6 Bank debits to individual accounts NACOGDOCHES: (pop. 12,303H (thousands) ........................................$ 44,506 + 83 + Postal receipts ···················· .......................$ 6,593 -11 -22 End-of-month deposits (thousands)•... $ 48,926 + 12 a Bank debits to individual accounts Annual rate of deposit turnover............ 10.8 + 17 + IS (thousands) ........................................$ 10,090 + 41 + 25 Unemployment ········································-·· 750 -21 -17 + End-of-month deposits (thousands) • ....$ 14,277 2 -2 Placements in employment ---------------------632 + 83 + 22 Annual rate of deposit turnover............ 8.4 + 38 + 25 Nonagricultural civilian labor force...... 20,600 + 11 x Placements in employment -----------·-----·----103 + 5 -18 Percent of labor force unemployed........ 3.6 -31 -16 ODESSA: (pop. 29,432H SAN ANTONIO: (pop. 406,811H Retail sales .................................... + 8 + 2-l Retail sales ...................... ........................... + 15 + 20 _ Department and apparel store sales __ __ _ + 16 + 34 Apparel stores ·····························-········· + 22 + 47 Postal receipts ...........................................$ 27,594 + 23 + 14 Automotive stores ------------------------·-------+ 2 + 6 Buildini:-permits ........................................ $ 578,050 -34 5 Department storest ................................ + 4 + 81 Air express shipment.s ---------···--·--------··----­233 + 12 7 Eating and drinking places ................ + 42 + 15 + Bank debits to individual account.a Filling stations ..................... + 20 + 11 (thousands) ........................................$ 30,064 + 28 + 14 Food stores .............................................. + 22 +u End-of-month deposits (thousands)•....$ 27,514 -24 + 7 Furniture and household stores............ + 3 + 12 Annual rate of deposit turnover____________ 13.5 5 x S8 + + 13 General merchandise stores ---------------­+ Placements in employment ---------···········--407 + 89 + 16 Lumber, building material and hardware stores -···--·----------------+ 18 + aa PARIS: (pop. 21,636H Postal receipts ............................................$ 452,201 + 17 + 18 Retail sales -3 + 40 Building permits ·················-··················-$ 5,022,152 + 26 +m Department an* Retail sales -----------------­-3 + 11 Retail sales ····------··-·--------·------+ 31 + 20 Department and apparel store sales_ + 19 + 67 Department and apparel store sales....-+ 39 + 54 Postal receipts --------------$ 19,336 + 6 + 9 Postal receipts -····------------------------$ 10,397 + 11 + 13 Building permits ------------------·· $ 119,080 + 25 + 6 Building permits ----·---------------------$ 322,705 + 42 + 32 Bank debits to individual accounts Bank debits to individual accounts (thouaands) -----------·$ 22,583 + 27 + 19 (thousands) -·---------------$ 20,505 + 56 + 47 End-of-month deposits (thousands) .....$ 14,712 -4 + 2 End-of-month deposits (thousands)•....$ 19,238 + 45 + 25Annual rate of deposit turnover__________ 18.6 + 25 Annual rate of deposit turnover________ 14.2 + 38 + 17 Placements in employment -----···-·-222 + 21 + 10 Unemployment (area) -----------------1,800 -44 0 Placements in employment (area) ........ 771 + 88 -13 Nonagricultural civilian labor force TEXARKANA: (pop. 24,657)* (area) ----------------------48,950 -5 x Retail sales ---------------------+ 2 + 24 Percent of labor force unemployedDepartment and apparel store sales___ + 21 + 59 (area) ------------------­3.7 -40 0 Postal receipts ····-----------------$ 46,123 + 17 + 22 Coastal cars unloaded ·----------------667 + 12 + 54 Air express shipments ----------­113 + 14 + 5 Bank debits to individual accounts (thousands) -----------------------$ 33,776 + 24 + 22 End-of-month deposits (thousands) •_ $ 24,451 + 3 -4 (pop. 38,864) * TYLER: Annual rate of deposit turnover____ 9.5 + 22 + 16 Retail sales + 6 + 17 Unemployment ------------­3,500 -23 + 6 Department and apparel store sales_____ + 28 + 46 Placements in employment -------1,032 + 95 -16 Postal receipts -----------·-----$ 45,145 + 6 + 18 Nonagricultural civilian labor force_____ 39,450 + 14 + 3 Buildin~ permits ______________$ 398,435 -28 + 10Percent of labor force unemployed.__ 8.9 -32 + 1 Air express shipments ------­187 + 46 + 3 Bank debits to individual accounts WACO: (pop. 84,300H (thousands) -----------$ 51,599 + 15 + 19 End-of-month deposits (thousands)•_ $ 50,740 -3 Retail sales + 15 + 20 Annual rate of deposit turnover___ 12.2 " Apparel stores ----------····----· + 10 + 52 + 18 + 20 Automotive stores --··----------+ 12 + 10 Placements in employment --------· 586 + 45 + 33 Furniture and household stores_________ -18 -1 Lumber, building material and hardware stores ------------------­+ 55 + 20 WICHITA FALLS: (pop. 67,709>* Department and apparel store sales-.. + 15 + 39 Retail sales -------------------­+ 17 + 23Postal receipts ··-···-·--------------·$ 84,246 x + 8 Department and apparel store sales__ + 4 + 36 Building permits ------------------------··$ 1,376,785 -44 -12 Postal receipts -----------------------------$ 82,227 + 33 Air express shipments --------­257 + 24 -10 + 10 Building permits ---------------------$ 362,094 Bank debits to individual accounts + 4 -1 Air express shipments --------------­301 (thousands) ---·····-·-·-···--·-······----$ 76,825 + 25 + 18 + 29 -21 End-of-month deposits (thousands)•.... $ 79,178 + 8 -2 Bank debits to individual accounts Annual rate of deposit turnover.__________ (thousands) ··-------------·$ 80,299 11.5 + 13 + 19 + 22 + 22 Unemployment ------·-------··-·-----·-··----­1,400 -30 -7 End-of-month deposits (thousands)•---$ 94,064 + 4 -2 Placements in employment ----···-·--··-· 766 + 45 + 27 Annual rate of deposit turnover_____ 10.2 + 16 + 23 Nonae-ricultural civilian labor force.___ 44,300 x + 1 U nemp)oyment --···---··--------------------­930 -27 -23 Percent of labor force unemployed·-···­3.2 -29 -6 Placements in employment ····-----·····-----654 + 22 -13Railroad carloading& : Nonagricultural civilian labor force_____ 39,830 + 17 + 1Inbound --·---······-----------------------209 x + 28 Percent of labor force unemployed...._ 2.3 -38 -26 Outbound --·---····-·-·-------315 + 21 + 58 *Excludes deposits to credit of banks. xChange jg leas than one-half of one percent. tPreliminary 1950 Census. The crux of the cotton situation lies in the above-aver­age world demand for cotton, resulting primarily from war and prospective war. The supply-demand problem centers on the United States and countries supplied by us through Economic Cooperation Administration chan­nels. Present cotton prices are expected to encourage ex­pansion of cotton acreage throughout the world. This increased acreage would ease the situation if yields were normal. *Excludes deposits to credit of banks. xChange jg less than one-half of one percent. tPreliminary 1950 Census. For a more detailed analysis of data concerning the manufacture of dairy products, the Bureau of Business Research will send, upon request and without charge, copies of the monthly release, Texas Dairy Manufacturing. PRODUCTION Manufacturing (The volume of manufacturinc activity In any Industrial area, varyinc recularly wltb tbe seasons, ia a sensitive measure of tbe chances In buaineaa activity.) A 3% rise in industrial electric power consumption in Texas from February to March attests to the growth of industrial activity as the defense program gets under way. Although, with the coming of longer daylight hours, total kilowatt hours consumed dropped 1% due to 2, 7 and 5% dips in commercial, residential and "other consumer" classifications, respectively. When ad­justed for seasonal variation, total consumption and industrial consumption each registered a 3% gain over February. INDEX OF CEMENT PRODUCTION IN TEXAS ADJUSTED FOR 1944 1945 1946 1947 1948 1949 1950 '901 February while stocks increased 55 thousand barrels (10% ). Last year's figures were slightly above ship· ments and stocks this year but were 1% below Fehru· ary 1951 production totals. INDEX OF INDUSTRIAL ELECTRIC POWER CONSUMPTION IN TEXAS Percent 500 "'"'"' 500 400 400 300 200200 m L oo 0 ~ 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 During February, wheat ground and flour milled and all cottonseed activity classifications fell below January levels, with the greatest drop being recorded in cotton· seed received at mills (67%). TEXAS INDUSTRIAL ACTIVITY Source: Bureau of Mines and Bureau of the Census Percent chan119 Feb 1951 Feb 1951 Item Feb 1951 Jan 1951 Feb 1950 from Feb 1950 from Jan 1961 According to the Wall Street Journal, the nation's electric power and light companies held first place among United States industries in their post-war spend­ing for construction and expansion. However, the rate at which such growth can continue is now in question due to prospectively more stringent controls on build­ing materials. After a slight decrease in February, crude runs to stills were again climbing in March as shown by a six-million-barrel increase, a seasonally adjusted in­crease of 6%. Kerosene and residual refinery stocks rose 4 and 1%, respectively, from the preceding month to reverse the downward February movement. Gasoline stocks also experienced a reverse by falling 1% and distillate stocks declined 13%. New facilities, recently added to a Waddel, Texas natural gasoline plant, are expected to substantially increase production this year over 1950. Latest available figures on production and shipments of cement show 16 and 19% drops from January to ELECTRIC POWER CONSUMPTION* (in thousands of kilowatt houra) Percent cban1re Use Mar 1951 Feb 1951 Mar 1950 Mar 1951 from Mar 1950 Mar 1951 from Feb 1951 TOTAL ·---------···-·········-754,844 762,750 628,876 + 20 -1 Commercial ·-··----·-----·· 149,810 153,136 132,842 + 13 2 Industrial ···············--·--360,717 348,596 283,327 + 27 3 + Residential --------····------126,494 136,441 113,586 + 11 7 Other ---------------------- -----117,823 124,577 99,121 + 19 5 •Prepared from reports of 10 electric power companies to the Bureau of Buainess Research. Cement (1,000 barrels) Production 1,185 1,417 1,169 + 1 -16 Shipments 1.130 1,394 1,203 -6 -19 Stocks• 581 526 707 - 18 +10 Cottonseed (tons ) Received at mills 11,501 34,491 153,614 -93 -67 Crushed 99,013 143,375 172,063 -42 -31 Stocks• 210,342 297,854 419,117 -50 -29 Wheat Ground (1,000 bushels) 2,533 2,905 2,305 + 10 -13 Flour (1 ,000 sacks) 1,093 1,244 988 + 11 -12 *End of month. With the coming of spring and much-needed rains, the manufacture of dairy products began to climb. American cheese led the field with a 63 % increase over February followed by ice cream with 45 %. The total milk equivalent was up 34% with a total of 41,947 thousand pounds. COTTON MANUFACTURING Source: Bureau of the Census, U. S. Department of Commerca Percent cballl't Mar 1951 Mar 1951 Item Mar 195lt Feb 1951 Mar 1950 from Mar 1950 from Feb 1961 CONSUMPTION• Cotton ---------------­----­-----­--Linters ______ ___________.._______ 15,785 4,021 14,421 2,320 15,090 2,073 + 5 + 94 + 9 +78 SPINNING ACTIVITY Spindles in place (OOO's) 21 3 213 216 Spindles active (OOO's) .. 202 205 201 x Total spindle hours (OOO's) ·········· 95,000 Average spindle hours.... 446 101,000 474 104,000 481 9 7 6 6 *In running bales. t For four weeks ending March 31, 1951. xChange is less than one-half of one percent. Lumber production in southern pine mills during February was slightly below that of the preceding month and of February 1950. Telephones in service in the state were increased by almost 166 thousand in March to reach a total of 1,307 thousand. INDEX OF CRUDE OIL RUNS TO STILLS IN TEXAS ADJUSTED FOR S-~ASONAL VARIATION 1935-39~ 100 Percent ~50 2>0 I --· 00 [)\.. I j" ;' l'v1.o I . '"° ,_ i'vL/Lr I." \ . ..r - v I00 100 "" 5 0 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 Natural Resources (The production of crude petroleum is a major Industry In Texas, and the chaqes in the volume of production have a direct effect upon the Income produced in the atate. Figures on the number of well completions by districts indicate the extent to which new aourcea of oil and pa are being developed and the areas of the state in which drlllln1r operation• are in process.) The March index of crude petroleum production was 219, a 6% increase over the February 1951 index of 206 and a considerable increase (42%) over the index of 154 for March 1950. Total well completions for 1951 to date were 3,905, representing a slight increase (1.4%) over the corresponding period of 1950. WELL COMPLETIONS Source: The Oil and Gas Journal March 1951* January-March District Total Oil Gas Dry 1951 1950 TEXAS --··---------------........ 1,210 734 48 428 3,905 3,852 North Central Texas -------­ 368 191 169 1,152 l,183 West Texas -----­--·-···-··-·····-­ 350 266 0 84 1,179 1,129 Panhandle ............................ 42 20 18 4 179 273 Eastern Texas 81 55 0 26 262 265 Texas Gulf Coast ........ ..... 177 94 15 68 571 519 Southwest Texas . 192 108 7 77 562 483 •For four weeks ending March 31, 1951. An official of the Petroleum Administration for De­fense recently indicated that petroleum refiners soon will be asked to reduce automotive gasoline octane ratings. The director of PAD's refining division said critical shortages among raw materials used in tetra· ethyl lead, a vital ingredient in anti-knock gasoline, may continue into 1952. Critical shortages of these materials (including metallic sodium and ethyl chloride) in relation to the amount of tetraethyl lead needed, particularly for aviation gasoline, will lead to the decline in automotive gasoline octane ratings. Price regulations governing petroleum products at wholesale have been extended by the government to in­clude natural gas, petroleum gas, casinghead gas and refinery gas. Under the new order, long-term contracts governing all except petroleum gas will be permitted to continue in effect. The Federal Power Commission has under study a proposed 2,175-mile natural gas pipeline from Texas PRODUCTION OF HYDROCARBON LIQUIDS FROM GASOLINE AND RECYCLING PLANTS (in barrels) Source: Texas Railroad Commission, Oil and Gas Division Percent change Jan 1951 Dec 1950 Jan 1950 Jan 1951 from Jan 1950 Jan 1951 from Dec 1950 Total production ... 9,697,672 9,633,763 8,537,927 + 14 1 + Condensate-crude 485,070 555,514 486,731 x -13 Gasoline -------------6,349,648 5,325,585 4,680,504 + 14 x Butane-propane and methane-ethane ------------3,608,581 3,488,607 3,046,990 + 18 3 + Other products _ 254,373 264,057 323,702 -21 Total gas processed (Mcf) 290,363,095 286,618,157 250,478,419 + 16 + Yield per Mcf in gallons 1.40 1.41 1.43 -2 xChange is less than one-half of one percent. to Oregon and Washington. The Pacific Northwest Gas Pipeline Corporation has applied for a permit to build a 26-inch line from Wharton County, in the Texas Gulf Coastal region, to the Pacific Northwest area. This is the longest main-line gas system ever proposed to the agency. A bill providing for an additional tax of one cent per 1,000 cubic feet of natural gas "gathered for sale" passed the Texas House of Representatives April 10. Proceeds would be split among the schools (25%), the counties (50%) and the cities (25%). A bill to boost the retail gasoline tax from 4 to 5 cents has also been submitted to a House committee. Several bills, pro­posing to establish a 10-cent minimum price for each 1,000 cubic feet of Texas natural gas used for commer­cial, industrial or residential purposes, are still in com­mittee. Also in committee is the proposal to boost the natural gas tax rate from 5. 72 to 11.44% of market value. TOTAL AND MARKETED PRODUCTION OF NATURAL GAS (in millions of cubic feet) Source: Texas Railroad Commission, Oil and Gas DiYision Percent change Jan 1951 Dec 1950 Jan 1950 Jan 1951 from Jan 1960 Jan 1951 from Dec 1950 TOTAL PRODUCTION Gas well gas Sweet -­-­-··---------­-­Sour 391,572 307,350 275,929 31,422 378,827 297,029 265,056 31,973 331,128 262,578 234,384 28,494 + 18 + 17 + 18 + 10 + 3 + 3 + 4 2 Casinghead gas* 84,402 81,798 68,550 + 23 + 30 Marketed production Gas well "ast Casinghead gast Exported from state .. 316,693 236,749 72,536 138,471 300,842 224 ,334 70,054 131,472 260,537 193,152 57,683 101,234 + 22 + 23 + 26 + 37 + 5 + 6 + 4 + 5 Percent of marketed production 35 44 39 -10 -20 To carbon black manufacture 30,759 27,077 24,629 + 25 + 14 Transmission lines 227,789 216,110 182,977 + 24 + 5 Consumed in state . Exported from state 89,318 138,471 84,638 131,472 81,743 101,234 + 9 + 37 + 6 + 5 *Total c:udnghcad g3s prcduced, excluding gas leg-ally vented at the oil well. tExclndes comingled i:as from gaso1ine plant operations. CONSTRUCTION (Becauae of the ac:<:umulated deficiency of bulldlnl' In all section• 1f the atate, data on the volume of construction work are an extremely Important part of the hualnesa altuatlon. Building permit. and contracts awarded are both generally used to measure buildlna activity.) Starting of construction in :Texas as gauged by pre­liminary estimates of the value of building permits is zooming to record levels. The result of seasonal adjust­ments made for these estimates, however, indicates a drop in construction begun in March as 1951 progresses with its material shortages and tighter credit controls. A summary for the first quarter of this year placed building activity at $213,421 thousand, the largest quarter total on record and 17% above the $182,877 thousand reported for the first three months of 1950. INDEX OF VALUE OF BUILDING PERMITS IN TEXAS Percenl ADJUSTED FOR SEASONAL VARIATION, 1935-39•100 "'~' 1939 1940 1941 1942. 1943 1944 194~ 1946 1947 1948 1949 1950 1951 Preliminary estimates of the value of building per­mits issued in Texas were $67,429 thousand in March, a 10% increase from February. All types of permits showed an increase over February, with the largest gain recorded in nonhousekeeping residential (212%). Multiple-famiiy housekeeping units were up 71 % from February. A comparison of the first three months in 1951 with the same period of 1950 showed the greatest increase to be in nonresidential new building (62%) ; both multiple-family housekeeping units and non­housekeeping residential buildings were down 39 and !J-1 %, respectively. However, the seasonally adjusted index of the esti­mated value of building permits issued in Texas dropped ESTIMATES OF IIUILDING PF.R~UTS ISSUED BY TYPE OF CONSTRUCTION (in thousands) ~ource : Durcnu of Bwdness Research in cooperation with the Bureau of Lnbor Statistics, U. S. Department of Labor January-March Type of March Percent construction 1951 t 1951 1950 change TOTAL $67,429 $213,421 $182,877 + 17 New construction 60,606 193,851 ··-·· · 164,731 + 18 Residential ................ 39,868 125.447 122,479 + 2 Housekeeping-39,656 124,723 121,249 3 + Sin£"le family _-·-36,788 116.775 108,149 8 + Multiple family ··--2,868 7,948 13,100 -39 Nonhousekeeping 212 724 1,230 -41 Nonresidential 20,738 68 ,404 42,252 + 62 Auilding p£)rm.its were issued within the i111~orporated area of the city is included. Federal contracts are excluded. tPreliminary. 10% from 442 in February to 399 in March, bringing the total decline from January to 34%. This decline in the adjusted index indicates the occurrence of a slump in i:ew building activity, possibly the beginning ?f t~e ?eclme that many have been predicting since the mstitut10n of controls on building credit and mate­rials. Although the adjusted index of the value of building permits issued for March was only 2% below the level of March 1950, adjustment for changes in the value of the construction dollar carried the deflated index 9 % below year-ago levels. Only the second largest city-size group (population 50,000 to 100,000) failed to show a gain over Febru. ary. The greatest increase was found in the 25,000 to 50,000 population group (35 %) . In comparing the total of the first quarter with that of last year, only the largest population group (over 100,000) showed an important change, a 37% increase. Latest statistics on construction contracts awarded in Texas, as compiled by the Dodge Statistical Research Service, put the total valuation of construction contracts for January and February 1951 at $250,209 thousand, a 107% increase from the $120,845 thousand of Janu· ary and February last year. Total new building was up 121 %, with the greatest rise in nonresidential build­ing (up 214%) . Additions, alterations and repairs ad· vanced 208% while public works and utilities saw a moderate increase of 18%. CONSTRUCTION CONTRACTS AWARDED IN TEXAS (in thousands) Source: Dodge Statistical Research Service January-February Type of Feb Feb construction 1951 1950 1951 1960 TOTAL CONSTRUCTION ---·---·$152,361 $ 62,989 $250,209 $120,846 Total new building --------­-·---­----·­115,091 49,328 194,085 87,840 Residential building --­-----­-----·--­ 56,674 37,020 111,915 61,710 Nonresidential b!!ildina: --·-----·--­ 58,417 12,308 82,170 26,180 Additions, alterations and repairs 21,639 5,870 27,888 9,048 Residential -----------------------------­ 558 151 1,183 827 Nonresidential --­------------------------­ 21,081 5,719 26,755 8,721 Public works and utilities.__ ____ _ 15,631 7,791 28,236 23,967 Total number of dwelling units provided in all resi· dential projects in Texas for the first two months of 1951 was 11,164, a 45% hike from last year. In the national scene, the total value of new construe· tion put in place during March was estimated at $2.1 billion, 10% above the February estimates and 21% more than the total for March 1950, according to the Building Materials Division of the Department of Com· merce and the Labor Department's Bureau of Labor Statistics. Total private investment for new construe· tion amounted to about $4.7 billion during the first quarter of this year while public expenditures were about $1.5 billion, increases of 20 and 22%, respec· lively, above a year ago. . Texas finished the year 1950 as the second-r~ng state in the country in new urban building construct1on and claimed the largest percentage increase over 1~49 in urban building valuations; the South Central region (Arkansas, Louisiana, Oklahoma and Texa~} was at the top in the nation in authorized construction. ESTIMATES OF BUILDING PERMITS ISSUED BY CITY-SIZE GROUPS (in thouaanda) Source: Bureau of Business Research in cooperation with the Bureau of Labor Statistics, U. S. Department of Labor January-March :March Percent Population• 196lt 1961 1960 change TOTAL ··············--·---·­ $67,429 $213,421 $182,877 + 17 Over 100,000 ···········-·-··­ 35,717 111,797 81,505 + 37 50,000 to 100,000 ·-·····-··· 9,678 35,780 36,619 x 25,000 to 50,000 -········­ 6,101 16,245 15,659 + 4 Lais than 25,000 ········-­ 15,933 49,599 50,194 - 1 Onl7 buildinir for which buildinir permits were issued within the lncorporatN. area of the cit7 i1 included. Federal contracts are excluded. •1940 Censwi. tPrellminar,.. In the latest release by the Bureau of Labor Statistics data on individual cities in various types of urban building construction during January 1951 showed that Dallas led the nation in "Stores and Other Mercantile Building" ($3,591 thousand) and "Churches" ($1,192 thousand); Temple was first in "Office and Bank Build­ings" ($1,221 thousand), and Houston led in "Public Buildings" ($5,200 thousand). It is generally believed in the construction industry that, although building continued to set records, the boom is only a momentum carried over from 1950's boom, with general panic-buying psychology among the chief factors in promoting the hike. A slow-down is expected after most of the backlog of financing commitments have been gradually worked off. Higher prices, higher down payments and tighter credit con­trols have substantially cut the demand for new homes, especially the low-cost types. Builders are getting cau­tious and may not put out the volume of buildings estimated by the federal planners. Serious shortages on building materials have not been experienced yet. It is a general belief that most builders stockpiled large quantities of critical materials before the controls went into effect, and they have enough supplies on hand or available to complete projects now undertaken. Some scarcities are antici­pated in the months ahead as the defense program rolls on. New control orders have been issued, or are under study, that will eliminate scarce metals from use in new home construction by the end of this summer. Expenditures for additions, alterations and repairs of homes and other buildings are expected to increase. Some persons believe that the reduced volume of new housing construction and the restriction on commercial and recreational construction will make it more de­sirable to keep the existing supply of such building in good condition. The money market of the construction industry is experiencing a drop in the flow of credit from invest­ment firms. Decisions of the Federal Reserve Board to increase the interest rate on long-term United States Government Bonds (up from 2% to 2% % ) and to cease supporting a pegged price on government bonds have made investment on mortgage loans unattractive. FINANCE Business Finance (Since the condition of bu1lne11 11 both reflected b7 and dependent upon financial cendltlona, varloua lndlcatora of financial activity are HHntlal for proper analy1la of tbe bualnesa altuatlon.) After several months of general increase the volume of bank credit in use in Texas remained relatively stable during March, continuing the trend that became ap­parent last month. As is evidenced by the table show­ing the condition of weekly reporting member banks in the Dallas Federal Reserve district, the totals of loans and investments, loans, United States Government securi­ties, and deposits each changed 1 % or less between the end of February and the end of March. However, the amount of credit in use in March was greater than the amount that was in use during March 1950. Member banks reported that on March 28, 1951 loans and in­vestments were 6% higher than on March 29, 1950. When loans and investments are considered separately, loans increased 25% over last year while government securities, the major investment account, decreased by 15%. In addition to granting more loans, banks used the funds raised by the liquidation of government securi­ties to increase investment in non-government securities. to increase reserves at the Federal Reserve Bank and to hold larger cash balances. Funds in addition to those from government security sales were made available to the banks by "demand" deposits which increased ny lOjt,. These changes, which have taken place during the past year, were influenced by increased government ~pending, taxes and reserve requirements. Increases in the two components of bank debits, annu~l rate of deposit turnover and end-of-month de­posits, explain the debit increase. Deposit turnover rose uniformly throughout Texas in the year-to-year com­parison. Increases for the state as a whole were 17 and 20% above March 1950 and February 1951, respec­tively. End-of-month deposits remained fairly stable over the last month, decreasing by only 1% for the state. A total increase of 9/'c was recorded over the past year. Of the 20 reporting cities, 15 reported de­creases and five, increases from February to March. The small monthly changes in end-of-month deposits ranged from a decrease of 6',7c in Abilene to an increase of 5% in Fort Worth. During the past year, 16 of the 20 cities reported increases in end-of-month deposits and four reported decreases. The largest incrca~e (16';( ) was in Abilene, while the largest decrease (5 % ) oc­curred in Laredo. TEXAS BUSINESS REVIEW SUMMARY STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANK OF DAl,LAS BANK DEBITS* (in thousands ) (in thousands of dollars) Source: Board of Governors of the Federal Reserve System Source: Board of Governors of the Federal Reserve System Percent chanll'e Percent change Mar 1961 Mar 1951 Mar Feb Mar from from Mar28 Mar281951 1950 Mar 1950 Feb 1951 City 1951 1951 1951 from from TOTAL ................$5,233,546 $4,394,614 $4,065,741 + 29 + 19 Mar28 Feb 28 Mar29 Mar29 Feh28 Item 1951 1951 1960 1950 1951 ---·-----------­ Abilene 56,704 46,692 43,509 + 30 + 21 Amarillo ................ 137,397 121,745 104,909 + 31 + 13 ASSETS Austin --------166,303 150,856 144,393 + 15 + 10 Gold certificate -·-···---­reserves -----------------527,681 657,688 662,905 -20 Beaumont 120,892 106,024 97,482 + 24 + 14 Corpus Christi .... 129,004 101,424 96,663 + 33 + 27 U. S. Government securities ................1,078,171 1,046,655 795,126 Corsicana .... 12,266 11,493 10,249 + 20 + 7 + 36 + 1,152,524 + 16 Discounts and Dallas --············ ..... 1,503,412 1,295,064 + 30 El Paso ·--------194,603 164,393 154,625 + 26 + 18 advances ------------------60 10,850 1,488 -96 -99 -······ Fort Worth 482,085 387,376 306,742 + 34 + 24 Other cash .................. 14,675 13,334 12,119 + 20 + 9 160,728 173,073 124,452 Galveston ............. 83,766 68,258 72,082 + 16 + 23 Other assets -------------- + 29 7 1,219,286 1,142,512 + 31 + 23 TOTAL ASSETS ....1,781,215 1,801,500 1,596,090 + 12 1 Houston ················ 1,500,669 Laredo ------------------22,231 18,638 17,722 + 25 + 19 LIABILITIES ----------·-···· Lubbock 100,802 104,149 79,697 + 26 -3 Federal reserve ··-·-··­ Port Arthur 43,165 36,546 33,829 + 28 + 21 44,506 41,442 33,649 + 33 7 notes --------------···--------611,337 622,754 613,263 x San Angelo .......... + Deposits ----·----------·------997,975 1,004,738 834,316 + 20 1San Antonio 393,242 320,080 321,784 + 22 + 23 Other liabilities --------135,727 138,778 114,260 + 19 2 Texarknnat .......... 33,776 27,730 27,332 + 24 + 22 TOTAL Tyler ...................... 61,699 43,300 44,970 + 16 + 19 LIABILITIES ......1,745,039 1,766,270 1,561,828 + 12 Waco ...................... 76,825 65,122 61,286 + 25 + 18 Capital paid in ·····---·-10,036 10,018 8,874 + 18 xWichita Falls ...... 80,299 65,998 65,882 + 22 + 22 Surplus ---------------------18,159 18,169 17,180 + 6 •Debits to deposit accounts except interbank accounts. Other capital tincludes two banks in Arkansas, Eighth District. accounts -----------------7,981 7,(}63 8,208 +IS TOTAL LIABILITIES AND CAPITAL ACCOUNTS ..........1,781,216 1,801,500 1,596,090 + 12 -1 The most significant developments in the l'exas finan­ cial situation show that (1) the amount of bank credit available in March 1951 was larger than the amount xChnnge is less than on.,.half of one percent. available in March 1950; (2) during the last month Government Finance the amount of bank credit available in the state did not (Federal and state ta" collections vary directly with the level of change materially; (3) the volume of bank credit hualneu prosperity and consequently serve aa an Index of economic changing hands has substantially increased over Febru­conditions.) ary as well as over the past year; and (4) since the Despite loud complaints from all quarters that state change in the amount of bank credit was slight, the revenues will not be sufficient to cover appropriations increased availability of credit was due to the higher now being considered by the Texas Legislature, tax col· velocity of use of that credit. lections by the State Comptroller of Public Accounts The rate at which new business enterprises organized increased 12% during the past fiscal year. Most sources decreased 20% from last year and 1% from last month. of revenue, except grants received from the federal In March 299 new corporation charters were issued FEDERAL INTERNAL REVENUE COLLECTIONS by the Texas Secretary of State as compared to 303 Source: Office of the Collector, Internal Revenue Service, for February and 372 for March 1950. However, there Treasury Department was a shift to larger-sized ventures, for the $100 thou­sand capitalization classification increased by 8% while July 1-March 31 all other classifications decreased. Real estate and mer­Percent 1949-50 chanre chandising ventures led with 63 and 53 new firms, District 1950-51 994,093,779 +22 respectively. TEXAS -----------------------------$1,212,131,730 $ Texans increased their life insurance coverage 6% Income ----------------------------755,481,736 619,353,472 +22 from March 1950 to March 1951, boosting sales 27% Employment 59,903,072 46,728,777 +28 from February to March this year. These increases Withholding ------------------281,245,083 217,534,287 +29 Other 115,601,889 110,477,243 + 5 compared to gains of 5% for the year and 21 % for -----------------------------­ FIRST DISTRICT 629,988,992 542,927,949 +16 the past month over the entire nation. +13 Income 393,293,577 347,909,230 ····------------ -----------­ 17,443,634 +58Employment ··---··------------26,683,737B USINESS FAILURES +28 Withholding ------------------148,150,250 120,479,092 Source: Dun and Bradstreet, Inc. Other 61,811,428 57,095,993 + 8 +29 SECOND DISTRICT ...... 682,192,738 451,165,830 Mar F eb Mar Feb Income 362,188,159 271,444,242 +83 ---------------------------· 1951 1951 1950 1950 +18 29,235,143 Employment ------------------33,219,335 +87 Number ....... ......................... 10 18 21 Withholding ------------------133,094,833 97,065,195 Liabilities• ....... $1,177 $ 397 $ 933 $1,605 Other -·-----------·-·-·--···--63,690,411 63,381,250 + I Average liabilities per failure* . .. $ 118 $ 44 $ 52 $ 76 ··-·*Withholding receipts for 1951 include Federal Insurance Contribution• *In thousands. which were formerly included in employment tax collections. REVENUE RECEIPTS OF STATE COMPTROLLER LABOR Source: iltate Comptroller of Public Accounts Employment September 1-March 31 (Employment statistics include data on both the employed and unemployed portions of the labor force and the number of place­ March Percent ments made by the State Employment Service durin11 the month. Item 1951 1949-60 These data serve as meaaurea of the demand for and the supply of 1950-51 change workera.) TOTAL ---------------------------$51,479,260 $345,115,575 $309,435,742 + 12 At the end of March the nation's civilian employment Ad valorem taxes_ _ ________ 3,211,505 32,062,232 29,0l>l,788 + 11 had reached an all-time high for that month, according Natural and easinghead to a release of the Bureau of the Census. An increase gas production taxea_ 1,248,866 7,712,496 6,492,661 + 40 of 809 thousand persons, most of whom were house­ Crude oil production taxes -------------------------9,005,832 63,108,413 45,053,528 + 40 wives entering the labor force for the first time, brought Sulphur production the month's total employment to 60,179 thousand. The taxes --------------------------0 2,858,091 2,228,661 + 28 Bureau of the Census also reported that national un­ Insurance corapanies employment had dropped to 2,147 thousand, a record o<'Cupation taxes ---­5,l71,15i 6,396,596 4,221,003 + 28 Motor fuel taxes (net) -6,955.244 53,502,861 48,161,899 + 11 low for the month of March. Texas and the Southwest Cigarette tax and were contributing more than their share to the over-all licenses ---------·--------·-· 2,663,997 18,799,159 15,173,572 + 24 employment gains. After registering a 12-month gain Alcoholic beverage taxes and licenses ------------­1,694,522 11,345,668 9,455,348 + 20 of 68 thousand workers, factory employment in the Automobile and other Southwest in February was at its highest level since sale taxes .................. 1,086,500 9,699,656 7,485,453 + 30 World War II, and the Texas Employment Commission Franchise taxes ---·---------­720,224 1,626,801 1,807,806 -10 Mineral leases, rentals and bonuses ................ 112,942 5,198,218 3,515,277 + 48 ESTIMATES OF EMPLOYMENT IN SELECTED INDUSTRIES Oil and gas royalties_____ 1,761,292 9,525,812 8,036,692 + 19 IN TEXAS Interest on deposits____ __ _ 12,060 91,038 2,388,719 -96 (in thousands) Interest on securities Source: Texas E'rnployment Commission in cooperation with the Bureauowned -----· --------------------1,316,971 6,106,162 5,212,512 + 17 of Labor Statistics, U. S. Department of Labor Unclassified receipts from county tax collectors --------------------­3,089,296-899,786 199,892 Percent change Motor vehicle licensee Feb 1951 Feb 1951and permits ------------­3,856,297 6,5'4,671 5,581,281 + 17 Feb Jan Feb from from Federal aid-highways __ 935,735 7,618,076 17,169,631 -56 Industry 1951• 1951 1950 Feb 1950 Jan 1951 Federal aid-public TOTAL MANUFACTURING 380.4 377.9 335.9 + 13 welfare --------------------5,658,643 44,412,248 43,127,373 + 3 + Durable goods -··----········----·-167.8 163.3 135.9 + 23 Federal aid-public + 9 Primary metals -·----·-·---··----· 17.2 17.1 14.2 + 21 education -------------------· 3,286,482 12,829,423 14,138,272 + Machinery (except ltetircment contributions 1,215,661 7,620,445 7,116,704 7 + electrical) 27.5 ---------------26.7 21.9 + 26 3 Unemployment compen­+ Transportation equipment 47.0 44.0 30.6 + 54 7 eatlon taxes --·-----------­351,762 9,118,026 11,667,837 -22 + Fabricated metal products 17.8 17.6 14.3 + 24 All other reeeipts ----------4,402,863 29,033,697 23,199,833 + 25 + Lumber and wood products 32.0 32.2 31.3 1 + 2 Furniture and fixtures_____ 9.1 8.8 7.9 + 15 + 3 Stone, clay and glass._____ 14.4 14.1 13.1 + 10 2 government for highway construction and for aid to + Other durable goods _ _ _ 2.8 2.8 2.6 + 8 0 public education, increased. The largest gains in amount Nondurable goods ------··-------· 212.6 214.6 199.7 1 + 6 and in proportion occurred in tax receipts occasioned Textile mill products___ _____ 9.8 9.8 8.8 + 11 0 by exploration for deposits of natural resources such Apparel ········-------·--·--28.2 27.3 25.8 + 9 + Food -·-·----·--··--·-----···-·-··-···-----60.2 64.3 57.0 + 6 6 as crude oil, natural gas and sulfur. Even with these Paper and allied products 6.1 6.1 5.5 + 11 0 increases, the revenues will not be large enough to Printing and publishing___ 21.8 21.7 21.6 + 1 x cover state expenditures during the next two years, arid Chemicals and allied products -··-------·----··-34.6 34.2 30.4 + 14 new tax bills are being prepared by the lawmakers. + Petroleum and coal The "shot in the arm" given government tax receipts products ·------··---·-·---43.2 42.8 43.2 0 + by higher business profits due to defense contracts and Leather ·-·----·---··----·-··----··----·· 2.5 2.3 2.0 + 25 + 9 Other nondurable goods -· 6.2 6.1 5.4 + 15 2 higher prices has increased internal revenue collections + 7 + NONMANUFACTURING __ l,561.2 1,563.7 1,463.9 xin March 69% over March 1950. This boosted collec­Mining ---····-····-··---------·······-·-107.6 107.1 97.9 + 10 x tions for the fiscal year-to-date to a level 22% above Crude petroleum and natural gas products_____ 100.7 100.2 91.7 + 10 x total collections for fiscal 1950 to the corresponding Metal, coal and date. All types of collection increased during the past other mining -··-·--------6.9 6.9 6.2 + 11 0 fiscal year. Withholding taxes led with a rise of 29%. Transportation and pubic 218.1 211.0 8 These greater receipts together with the unexpectedly utilities --·---····-··-----216.6 + Trade -·--------·····---···-····-··--504.2 607.8 480.7 + 5 small expenditures for the defense program, which is Wholesale trade --·----131.3 132.1 126.6 4 not yet in high gear, have left the Treasury with a Retail trade ------------372.9 375.7 354.1 5 + + surplus so substantial that no new tax increases are Finance, service and miscellaneous -----301.8 302.2 290.6 4 x likely to be necessary before 1952. Not that funds + Government ·-----·-283.7 281.6 263.1 8 --+ + represented by past tax increases will not be needed or used; they will simply not be needed immediately. Thus, xChange is less than one-half of one percent. increases in tax rates may be deferred until later. *Preliminary. NONAGRICULTURAL CIVILIAN LABOR FORCE 1950 and 7% from January levels. The 16,400-employee gain iri this industry from February of last year ac· Source: Texas Employment Commission counted for 51 % of the total 12-month gain in all durable-goods manufacturing in the state. Percent change Average weekly earnings for manufacturing workers Mar 1951 Mar 1951 Mar Feb Mar from from in February fell one dollar from January to settle at Area 1951 1951 1950 Mar 1950 Feb 1951 $59.63. This was $4.45 less than the national average TOTAL --------------1,485,240 1,472,680 1,402,520 + 6 + as reported by the Bureau of Labor Statistics on Febru­ary 15. Every manufacturing industry except textile Abilene -----------22,100 21,750 19,100 + 16 + 2 Amarillo 37,750 37,500 36,600 + 3 + mil ls and printing followed the normal seasonal decline Austin -- ·-----------------48,385 48,185 45 ,975 + 5 x in February, but earnings still remained well above Beaumont­ year-ago levels in every industry. Port Arthur ----------76,500 75,500 75,375 + 1 + 1 During March the nonagricultural civilian labor force Corpus Christi ·· ····--56,700 56,350 53,950 + 5 x Dallas --------------------------271,900 269,700 251,600 + 8 + in 17 labor market areas of Texas increased 1% to El Paso ----------------------61,950 61,560 54,000 + 15 + 1 bring the total 6% above March 1950. Placements re­Fort Worth --153,200 152,100 139,500 + 10 + ----···--·- ported by the TEC were up 46% from a year ago while Galveston-Texas 48,950 48,900 51,550 5 x unemployment had declined 37%. Unemployment as City ------------Houston-Baytown______ 341,800 340,700 336,100 + 2 x a percent of the total labor force, after a seasonal gain Longview ----------------22,925 22,925 22,600 + 1 0 in January, was back to the low of 3.1 recorded in Lubbock --------------------30,100 30,100 26,800 + 12 0 December. Swelling industrial and government pay San Angelo ------20,600 20,650 18,500 +11 x San Antonio --------168,800 164,300 157,800 + 7 + 3 rolls seem capable of absorbing the influx of new Texarkana ----------39,450 38,450 34,750 + 14 + 3 workers in the labor force. For the eighth consecutive Waco ----------44,300 44,050 44,150 x + 1 month Dallas held the favored low spot in percentage Wichita Falls 39,830 39,460 34,170 + 17 + 1 of unemployment among the reporting labor markets. The percentage of unemployed workers dropped again has predicted that all Texas employment records will to 1.5, a low point earlier recorded by Dallas in Octo­be shattered within the next few months. Most of the ber 1950. l'he Houston-Baytown area held second place tremendous gain has occurred in the manufacture of with 2.2% unemployment, the lowest percentage re· transportation equipment such as planes, trailers, rail­ported for that area since World War II. road cars and other vehicles. Estimates of employment A necessary corollary to low unemployment is a short in transportation-equipment manufacturing in Texas for supply of labor for replacement and expansion. This February stood at 47 thousand, up 54% from February scarcity of skilled labor, already making itself felt in HOURS AND EARNINGS IN TEXAS* Source: Texas Employment Commission in cooperation with the Bureau of Labor Statistics, U.S. Department of Labor Average week)y earnings Average weekly hours Average hourly earninp---­ Industry Feb 195lt Jan 1951 Feb 1950 F'eb 195lt Jan 1951 Feb 1950 Feb 195lt Jan 1951 Feb 1960 MANUFACTURING, TOTAL_________ Durable goods, total..______ _________________ Nondurable goods, total----------------------­ $ 59.63 57.94 60.79 $ 60.63 59.87 61.45 $ 55.20 54.66 55.62 41.7 42.6 40.8 42.7 43.7 41.8 41.5 42.7 40.6 $ 1.43 1.36 1.49 $ 1.42 1.87 1.47 $ 1.88 1.28 1.87 Primary metals..---------------------·----­Machinery (except electrical) -------------­Transportation equipment_____ ___ ___ ___________ 65.60 67.65 65.98 67 .57 69.31 66.34 60.15 62.78 65.26 41.0 45.1 41.5 41.2 45.9 42.8 40.1 43.9 42.1 1.60 1.50 1.59 1.64 1.51 1.56 l.60 1.48 1.66 Fabricated metal products_______ ____________ 62.58 63.84 53.30 44.7 45.6 41.0 1.40 1.40 1.80 I.umber and wood products -----------­Furniture and fixtures _____________ 43.60 48.02 43.83 51.16 42.62 47.95 43.6 41.4 43.4 44.1 44.4 43.2 1.00 1.16 1.01 1.16 .98 1.11 Stone, clay and glas•------------·-----­ 51.78 54.12 48.22 42.1 44.0 42.3 1.28 1.28 1.1' Textile mill product•­-----------------------­Apparel and fabric products___________________ 50.17 35.42 48.62 36.85 42.95 32.56 44.4 88.5 44.2 39.2 41.3 38.3 1.13 .92 1.10 .94 1.04 .81 Food..-----------­------­-------------------------------­Paper and allied products.___________ 62.58 62.78 52.64 63.60 47.68 57.96 .U.4 42.1 42.8 42.4 41.l 41.7 1.27 1.49 1.23 1.60 1.16 1.19 Printing and publishing ··------------------------· Chemicals and allied products-------------­-Petroleum and coal products__________________ 75.66 70.68 80.60 73.73 71.60 83.22 72.25 64.83 73.52 38.6 43.1 39.9 38.2 44.2 41.2 39.7 44.1 38.9 1.96 1.64 2.02 1.93 1.62 2.02 1.82 1.47 1.89 NONMANUFACTURING Crude petroleum production________ ___________ 1.87 1.86 1.7'1 83.22 81.65 72.04 44.5 43.9 40.7 Nonmetaliic mining··------------------·-··-------···· 66.12 67.42 63.20 88.0 39.2 39.5 1.74 1.72 1.60 Public utilities.____________________________ ____________ 1.34 1.80 60.77 53.33 52.52 43.1 39.8 40.4 1.41 .91 trade___________ 1.08 Retail 45.15 44.81 41.13 43.0 43.5 45.2 1.05 1.8'1 1.4'1 Wholesale trade 67.58 64.53 59.32 43.6 43.9 43.3 1.55 ·-..... -------------------------------­ All series were revised January 1949 and are not 1trictly com· parable with previously published data. tPreliminary-subject to revision upon receipt of additional reports. *Figures do not cover proprietors, firm members or other principal executives. many industries, has shown indications in some areas of becoming a very serious problem. However, a top labor official in Washington has said that the govern· ment does not expect to "freeze" employees in their jobs this year. LABOR IN TEXAS Source: Texas Employment Commission Percent change Cl.uaification Illar 1951 Feb 1951 Mar 1950 Illar 1951 from Mar 1950 Illar 1951 from Feb 1951 William R. Spriegel Dean TEXAS BUSINESS REVIEW Published monthly by the Bureau of Business Research, College of Business Administration, The University of Texas, Austin 12, Texas Material contained in thia publication ia not copyrighted and may be reproduced freely. Acknowledgment of source will l:.e appreciated. Subscription $2.00 per year. J. Anderson r'itzgerald______________conaulting Deati Nonagricultural civilian labor force ---·-­-­1,485,240 Placements ---­-33,352 1,472,680 28,037 1,402,520 22,922 + 6 + 46 + 1 + 19 Unemployment _ 45,490 48,480 72,520 -37 6 Percent of labor force unemployed 3.1 3.3 5.2 - 40 - 6 John R. Stockton Stanley Arhingast Industrial Relations (A lmowlecls• of current developments ha lnduatrlal relation• la ~to an underatanclJns of the atate'a labor picture.) Labor relations in Texas during March were rather stable, continuing a trend which began in February when the Texas Employment Commission reported only one new dispute for the entire month. This marked the lowest number of disputes ever recorded for a single month since the commission started its labor­management dispute report. Including six disputes C{ll'rled over from the previous month, only 1,672 work· ers were involved in Texas labor disputes in February. In contrast to the Texas labor dispute record, the United States Department of Labor reported a national total for February of 400 new work stoppages and 200 carry-over stoppages involving 300 thousand work­ ers and 1,700 thousand man-days. In the Texas Senate a committee approved the bill placing violations of the right-to-work law under the anti-trust laws. Subsequently, the national Labor News Service, distributed by the AF of L to union newspapers, stated "Texas declares war on unions." It seemed clear that both labor and management would make active use of the national 10% wage-freeze formula. For example, the Dallas office of the Depart­ ment of Labor reported that over 200 firms had filed reports giving raises under the 10% formula. Many large firms were involved, and most of the reported raises covered a majority of the employees. In addition there were requests pending from 85 employers seek­ ing rulings on whether their proposed wage increases were legal. In an important decision reached at the end of March, ·the National Labor Relations Board ordered certain representation elections in the building industry. This order marked a departure from its 15-year-old policy and promised to bring a large proportion of the build­ ing industry under the Labor-Management Relations Act for the first time. On the political scene the United Labor Policy Com­ mittee continued its fight with the Administration over representation in the defense mobilization program. There were indications that a compromise might be reached soon. STAFF OF THE BUREAU OF BUSINESS RESEARCH DirectM A•siatant DirectM Ruovrcu Specialist A. H . Chute W. N . Breswick Retaili"D Specialist International Trade Specialist Robert Ryan Eugene Beard Dan Hill Edit<>rial Auiatant Ruurch Supervist>r Fiad Repruentatit!e PesnrY Curtice Evalyn Kauer Marjorie Cornwell Libnsrv Auiataftt Statistical Auiatant Secr•tarv Isabel Worley Frances Wilson Richard Graves Tommie Martin Publica.ti