Bureau of Business Research The University of Texas ' ol. "\"VI, :\o. 9 OcLober, 1942 A Monthly Summary of Business and Economic Conditions in Texas and the Southwest Bureau of Business Research, The University of Texas, Austin, Texas Entered as second class mnttcr on May 7, 1928, at the post office nt Austin, Texas, under Act of August 24, 1912 TRlND OF ANNUAL F A fl, M CAS~ NCO ME f>Y Pl\ODUCTS IN T t X A S I 9 2 7 -9 4 I ! TEXAS BUSINESS REVIEW Business Review and Prospect GENERAL to nearly 133 million dollars compared with approxi­ From various sources come heartening reports of a new spirit in Washington. For example, Barron's National Business and Financial Weekly on page four of the October 19, 1942, issue makes this opening state­ment: "There is a new atmosphere of firmness and sense of direction in our war leadership since President Roosevelt returned from his swing around the country. "Issues are being stood up to and met. That foggy aura of indecision and politics seems to be lifting. Or perhaps because it is now evident that the people are ready to come up for their sacrifices and resent being coddled the new course seems good politics. In any event there is a decisive snap and intelligence being applied to current problems. A spirit of what is the best thing to do without such regard for what is the expedient thing to do." War production continues to rise but total production for civilian use obviously is declining since Barron's index remains virtually unchanged at approximately 130. TEXAS BUSINESS There was little change in the Texas composite index of business activity from August through September which continued at approximately 160. Increases in the indexes of employment and pay rolls were virtually off set by decreases in the indexes of the remaining com­ponents. Failure of the index to continue the advance of preceding months was not caused by a decline in business and industrial activity hut rather by the failure to make the normal seasonal advance. EPTEMBER I DEXES OF BU I ESS ACTIVITY IN TEXAS (Average month of 1930=100%) ept., 1942 Sept., 1941 Aug., 1942 Em1 loym nt --------------129.8 107.2 127.4 Pay Rolls ----__ 196.3 127.3 187.1 1.isc. Freight arloading ( . W. District) --------------112.3 80.8 121.1 Runs of 'rude Oil to till • 181.3 221.2 182.5• Departm nt tor al _____ 150.3 130.1 156.8 on umption of Ele tric Power __ 217.7 162.5 217.3 ornpo itc --------------160.7 123.5 160.2 •Rcvi1ed. Compared with September, 1941, all of the components used in the index except runs of crude oil to stills made substantial gains over the corresponding month last year. The composite index rose accordingly from 123.5 to 160.7, an increase of 30 per cent. FARM CAsH INCOME Agricultural cash income in Texas (exclusive of government subsidies) during September as computed by this Bureau (see note at bottom of table) amounted mately 104 million dollars during September last year, an increase of 28 per cent. DEXES OF AGRICULTURAL CASH INCOME (Average Months 1928-1932= 100%) Cumulative Income District Sept., 1942 Aug., 1942 Sept., 1941 1942 1941 (000 Omitted) 1-N -----------172.5 178.6 96.8 62,126 28,134 1-S -----------319.9 334.0 136.5 33,874 19,411 2 -----------------156.1 194.2 91.7 52,160 32,882 3 ---------------226.3 314.2 116.5 30,925 18,963 4 ------------------110.0 65.6 93.0 104,794 71,890 5 -----------------62.4 44.5 39.4 34,853 21,066 6 ------------------283.0 198.5 169.5 23,506 17,753 7 -----------------275.7 227.3 131.3 50,890 39,188 8 -----------------134.3 115.2 175.2 62,010 37,733 9 ------------------214.9 142.0 88.5 37,422 22,649 10 ------------------143.6 137.6 129.2 15,383 12,225 10-A ---·---------130. 7 223.8 291.5 37,389 19,322 STATE ---------119.4 118.2 93.2 545,332 341,216 NoTE: Farm cash income as computed by this Bureau understates actual form cash income by from 6 to 10 per cent. This situation results from tho fnct that means or securing complete local marketings, especially by truck, have not yet been fully developed. In addition, means have not yet been developed for computing cash income from an agrieulturnl specialt ies of local importanco in scattered areas throughout the State. Thi1 situation, however, does not impair the accuracy or the indexes to any appreciable extent. On the outer cover of this issue of the REVIEW is a graphic presentation of the trend of farm cash income in Texas from 1927 through 1941 with a preliminary esti­mate for 1942. The information is given for each of the crop reporting districts as well as for the State as a whole, and is moreover broken down according to prin­cipal sources--cotton and cottonseed, grains, livestock, and livestock products and all other products principally fruits and vegetables. PRELIMINARY ESTIMATE OF FARM CASH INCOME IN TEXAS FOR 1942 Only a comparatively rough approximation can be made at this time of the probable farm cash income in Texas during the current year. The computed farm cash income for the first nine months of the year is 545 million dollars compared with 341 millions dollars during the corresponding period in 1941, or an increase of 60 per cent. It is improbable that this rate of increase over 1941 will be maintained during the last three months of the year, hut it is quite probable that the actual computa­tion for the entire year 1942 will he at least 40 per cent above the corresponding figure of 616 million dollars for 1941, which would make the 1942 farm cash income more than 850 million dollars. This figure is more than 50 million dollars greater than for any year for which computations have been made by this Bureau, the nearest being in 1928 when the total farm cash income was a little under 800 million dollars, computed on a comparable basis. It is much more likely, more· For Other TUGI Data, See Statistical Table$ at the End of this PubUcation over, that the final computed figure for 1942 will be above 850 million dollars, than that it will be below this amount. As already indicated, the computed figure is an under· statement estimated at between five and ten per cent. On this basis, actual farm cash income in Texas during 1942, exclusive of government subsidies, promises to be upwards of 900 million dollars against a comparable figure of slightly less than 700 million dollars last year. With government subsidies it may well reach a total of more than 950 million dollars. F. A. BUECHEL. Natural Resources, Science, and Industrial Organi­ zation in the Rapidly Changing Texas Scene EDITOR'S NoTE.-Each of the many articles prepared for the REVIEW by Mr. Johnson during recent years has no doubt well repaid the careful render seeking a sound basis for the interpn;ta­tion of eronomic and social phenomena. His thorough groundmg in the physical and biological science&-eSpecially in the fields of geology, mineral resources, soilr., physical geography, and ecology -gives Mr. John!'On a scientific approach to the study of natural rr~ions and associated natural resources, which few others possess. With these bases upon which to build! his studi~ of. regional e~c>­nomic developmPnt take on a re.ahsm and . s1gmficanc~ qm~e unique. Although the sweep of his concept 1s world wide •. h.is studies of rel[ions and resourees are noteworthy for the detail m which they have been worked out. In a brief summary of essential factors concerned with the economy of Texas, three elements are outstanding: the scope of the Texas region and its natural resources, the impacts of science upon the fuller development of the State's natural resources, and the impacts of world­wide economic movements not only upon Texas but upon other regions of the world, whether these regions are competitive or complementary with reference to the Texas region. Other elements concerned in the broader aspects of Texas economy may be regarded as corollaries of the elements named above; an exception is the one relating to the comparative position of agriculture and industry in an economic system, which of course involves social factors of fundamental significance. The following outline attempts to present briefly the main factors concerned in the regional economy of Texas. I. First in importance in the scope of the Texas region as manifested in: a) The volume, quality, and diversity of Texas natural resources which are spread throughout an area nearly a twelfth of that of continental United States; b) The geographic orientation of Texas, together with the physical setting of the State in relation to the geologic architecture of the North American continent. Mere extent of territory may not necessarily be of any great positive importance; but the vast size of Texas in relation to the geographic orientation of the State on the one hand and the geologic make-up of the major sections of the State on the other hand all combine to give to Texas a diversity in, and an aggregate of, surface features and sub-surface conditions and resources that considered as a whole are little less than magnificent. A comprehensive view of Texas, commensurate with its geographic and geologic position in the North sources, obviously must be a first essential to an under· standing of the State and is at once a necessity to an interpretation of past developments and an indispensable element in envisioning the potentialities of the State in the near future. II. In connection with the natural resources attention is to be given to the import of the dynamics of science and industry in their mutual application to the economic development of Texas as evidenced through a more optimum utilization of the State's natural resources. These dynamic factors are institutional forces of the first magnitude. But, without the requisite bases of natural resources upon which to operate, these forces are virtually powerless. The scope and variety of natural resources on the one hand and the impacts thereon by an advancing technology and expanding industrial demand on the other supply the fundamental factors upon which economic development is based. III. Then there are the powerful impacts of world­wide economic movements upon the Texas scene and the consequent reactions upon "old" industries such as cotton and timber and the like on the one hand, and on the other hand upon the "new" industries such as the various aspects of the chemical industry, or what is being done with petroleum and natural gas and with the potentialities, for instance, or what may be done with vegetable oils or starch products. . The fut!'lre relations of cotton and synthetic fibers m supplying the demands of the textile market the potential aspects of vegetable oils and cellulosic prod· ucts, the accentuated vital importance of petroleum and natural p;as, and the potentialities of the State's vast non-metallic resources are all to be viewed against the background of these powerful forces which are sup· ported by scientific developments and achievements that are little less than revolutionary. With respect to petroleum, it is becominp; obvious that oil as a chemical raw material holds possibilities for a revolution in the chemical industry comparable to that inaugurated by the large scale use of coal-tar products in the latter part of the 19th century. IV. The new tempo in Texas economic development is manifested in one sense through the growing apprecia· tion of the inherent qualities of the State's diverae natural resources, as exemplified through the progress of scientific studies. The results of these studies are American continent and its vast wealth in natural re-being more and more efficiently utilized as illustrated by dominant trends in recent industrial developments and applications. One of the most difficult of problems, it may he remarked, is that of picturing in some adequate manner the revolutionary advances and changes that are taking place all about us. The tempo is too rapid, the changes are too deep, to he interpreted on the levels of achievements characteristic of even a few years ago. V. The accentuated aspects of competitive factors, because of developments in other producing sections of the world, for available markets, will not grow less in the post-war era, so far as Texas products are concerned. Industrial trends are world-wide in their scope; they operate on a world-wide stage not only in developing new regions hut also in developing new products for new uses and in developing new products which take the place of commodities formerly used. A com· J>rehensive study of competitive factors, which affect Texas products now and which will affect such products in an ever increasing measure in the future, can he hut little less than world·wide in its inclusiveness. VI. The comparative position of manufacturing and agriculture, as types of institutional adjustments in the economic life of the State, presents problems which cannot he measured merely in economic terms. The social implications and the social reactions concerned in these two systems of utilizing natural resources merit careful attention in analyses of the State's economy. VII. One manifestation of the dynamics of economic growth is that of economic integration in the economy of the United States as a whole and which is expressed necessarily in a more optimum economic development of the major regions of the country. The potentialities which Texas possesses in such an integration, by virtue of the State's great wealth in its varied natural resources, are of an order of magnitude adequate to give Texas a large and ever·growing place in the expanding national economy. This is hut another way of emphasizing the economic significance of regional analyses; unless fitted into the fundamental features of the regional environ· ment, most production studies necessarily are given to the use of abstractions which restrict their economic applications and limit their usefulness. VIII. Regional shifts of population and industries in the United States are evidences of geographic dis­persion and reflect the effects of a fuller utilization of the advantages possessed by the regions concerned. For the past century and a quarter the history of Texas has been determined primarily by these shifts into the South· wesl And the history of Texas internally considered has been concerned with the occupying of its major regions, each as large as an ordinary state. Regional shifts of national scope such as those that have been outstanding during the past two decades are manifesta­tions of forces operating to bring about a more com­pletely integrated national economy. As a matter of fact, the economic history of the United States and of its several major divisions is concerned primarily with these regional shifts and the economic and social consequences thereof. Whether these shifts involve cotton growing or livestock production, lumber­ing or the pulp and paper industry, petroleum or natural gas, o~ the several hra?che~ of the chemical industry, the shift took place pnmanly as an adjustment to the utilization of the natural resources involved. To at­tempt to explain these shifts by statistical data, or merely by so-called economic analyses, is to «et the cart before the horse. And, of course, some curr:nt attempts to explain away the significance of natural resources ~ould, of co~rse, _he ridiculous were they not so tragic m t?at they give nse to ?tterly wrong conceptions about sub1ects of transcendent importance in today's world. What is required as a prerequisite to an interpretation of these regional shifts is a scientific understandina of the physical environment of the regions concerned 0 and of the associated natural resources. Without a scientific understanding of the region and of the manner in which the natural resources are genetically associated with the physical conditions of the region, analyses of regional economy are necessarily limited to superficial aspects of the features concerned. INDUSTRY AND THE NEW TEMPO IN TEXAS ECONOMIC DEVELOPMENT That the wealth of Texas now as well as in the future is, and will be, fundamentally dependent upon the natural resources of the State is hardly open to question. In fact, it is not questioned by those who think in realistic terms. And, because of this fact, considerably more attention necessarily will he paid in the future to studies of the natural resources of the State than has been true in the past. The whole field of conservation of natural resources is due to receive the attention it merits in a region where the significance of natural resources is so basic to the State's economy. But, in an area as large as Texas and as varied both as to surface features and sub-surface characteristics it is indeed a formidable task to get a full-fledged wo;kahle perspective of the State's natural resources. Partly because it is a formidable undertaking to get a suh­stanital perspective of Texas' natural resources and of the way in which they are basic to an understanding and appreciation of the State's economy, and partly because of a lack of appreciation of the fundamental importance of natural resources, this phase of the study of Texas constitutes one of the larger gaps in the educational system. A sure knowledge of the wide range and the inherent qualities of these natural resources can come only as a result of long and painstaking scientific in­vestigations. For this is a field in which mere statistical summations do not suffice. Owing to the fundamental importance of natural re­sources in the economic life of the State, it would be difficult to overemphasize the significance of scientific studies of the State's natural resources. In addition, there is the fact of the comparative position of Texas' natural resources, which by virtue of their volume, quality, and diversity, occupy a significant place in the pattern of the natural resources of the nation. At the same time, however, it is not merely volume that is to he considered significant, important as this item is, but also the inherent qualities of these natural resources as these properties are being progressively opened up by advancing science and utilized by new industrial develop­ments. It is necessary, therefore, that the student of economic development in Texas have not only a scientific under· standing of the natural resources of the State but also a comprehension of the manner in which advancing science, on the one hand, and industrial organization, on the other, are bringing about a more optimum develop· ment of these resources. The first problem encountered in portraying industry in Texas is that of the wide scope and the attainable high levels of the potential industrial development in the State. A second point is the fact that industry is not merely an agglomeration of machines and equipment and industrial processes but that industry is itself a predominant dynamic factor in determining the patterns and characteristics of economic life. Industry is concerned with machines and processes, both mechanical and chemical, but industry, owing to its inherent properties, has become one of the most powerful and at the same time most widespread of dynamic institutional factors, the impingements of which are obvious on wide fronts in today's rapidly changing world. The fundamental fact concerning industry is that it is based primarily upon the applications of progressively advancing science to the opening up of potentialities made possible by natural resources. Science is a funda­mental institutional factor of the first magnitude, and it is a dynamic factor, for when science ceases to advance, it is no longer science. Furthermore, it appears that industry is dynamic to the extent that it partakes of the dynamic qualities of science, on the one hand, and the potentialities made available by new or a fuller knowl­edge of natural resources, on the other. Thus the essential fact is that dynamic science and industry work hand in hand, with the consequence that natural resources are progressively being brought to new levels of effective­ness. But without the natural resources, there would be no bases upon which science could operate and no materials to which technology could be applied. And, furthermore, both science and industry operate on a scale that is world-wide. As stated by Veblen, "the modern state of the industrial arts is drawn on inter­ national scale, in that it works to the best, that is to say the most productive effect by the free use of materials drawn from many sources, far and near, and by such free local specialization of industry as will permit the supply of any given line of goods, finished or half. wrought, to be turned out wherever the facilities for their production are at their best. This is the chief service of the modern means of transport and communication." The scope and range of Texas natural resources both as to volume and pattern of combinations are adequate to support industries of more than merely local propor­ tions, as is abundantly exemplified in the petroleum industry and is currently being exemplified on a wide front in the chemical industry. No longer are provincial concepts of Texas natural resources and industry per· missible; instead the potentialities of the State have to be appraised in the light of their position in the national picture and even in the international scene. And, owing to war needs, the foremost natural resource of Texas in the national picture now and in the inter­national scene is oil with natural gas occupying also a very important position. In an address recently before The American Chemical Society, Charles M. A. Stine, a du Pont vice-president, spoke as follows of oil in the chemical picture: By all means, too, watch petroleum. Some years ago it wu believed that the ultimate in motor fuel would be reached by the creation of a gasoline equivalent in power and anti-knock qualities to pure iso-octane. So superior was iso-octane in theae respects that it arbitrarily was given an octane number of 100. which became the standard in evaluating all gasolines. •• , Fuels now can be made that go beyond the octane scale. Their estimated octane numbers are of the order of llO or llS or even higher. They deliver one-half again as much power as 100 octane fuel. Looking upon the situation that is indicated for after the war, the petroleum chemist now sees all existing motora as out of date, with knowledge of fuels advancing so rapidly that September's motor might be out of date in October. Let us glance at another phase of petroleum chemistry, A barrel of crude oil contains literally thousands of chemical compo.u~ds. The chemist .has long been fascinated by tho poss1b1hty that almost anything under tho sun might be created with these chemical building blocks of hydrogen and carbon· that simply by the addition of oxygen and other elements in th~ proper combination, he might obtain new alcohols, esters, acids. solvents, perfumes, pharmaceuticals and organic synthetics of every type. Catalytic cracking processes and adaptations of them, bro.ught very rec«:ntly to high stages of performance, are !1ow leadmg toward th1.s goal and taking petroleum chemistry mto a realm once exclusive to coal-tar chemistry. The largest cata!ytic c~acking c11:pacity in the world is being operated by American oil companies. Soon this capacity will appi:oximate some .hundreds of thousands of barrels daily. The significance of. this. deyelopment, well underway in 1939 but expanded. ~o gigantic s~ze by the n~eds of war, is beyond all present v1s10n. Synthetic rubber, which as every chemist knows 1s no~ ~bbei: ~t al_l but. a new material of broader and yet more prom1smg ut1hty, 1s bemg produced from butadieno and styrene synthesized from petroleum. Toluene, best known as the basis of on~ of . the most important of modem high explosives but also essential m dye chemistry and many other industries, is now a petroleum product. With almost equal facility the petroleum chemist can give ua ethylene, on the one hand, or benzene on the other and su1>_ply them i.n quanti.ties measured in hundreds of tons 'daily. Thia feat might be hkened to drawing wine or water at will from tho ~me cask, or getting beef or pork from the same animal, mas~uch as ~t.hylene an~ benzene are members of quite different chemical fam1hes. Practically, they are employed in such diverse uses as the manufacture of styrene plastics, both the Buna and Thiokol types of synthetic rubbers, drugs, dyes and nylon. More­over, acetylene can be produced from refinery gases to furnish the principal intermediate in the manufacture of neoprene. The vital strategic significance of petroleum reserves and production in the war effort gives to this natural resource a level of importance which as yet is not generally appreciated. Certainly oil has become one of the major key resources in the global war, and upon its control hinges the fate of nations. AGRICULTURE AS A BASIC ENTERPRISE Texas is traditionally an agricultural and range live­stock producing State; the importance of these enter­prises is, however, by no means limited to traditional features. Agriculture and livestock are still and will long remain important in the State's economy, owing to the wide extent of the physical characteristics and the associated natural resources of the various portions of Texas which are concerned in the production activities of these enterprises. The extensive rich soil regions of the State, the wide expanses of lands highly suitable to native grasses, and the temperature and rainfall and soil conditions conducive to the rapid growth of forest trees in the eastern part of the State give to Texas a diversity in its capacity for large output of plant products equalled by few if any other states in the country. Unquestionably much progress remains to be accom­plished in rendering more efficient the adjustments of agricultural and range enterprises in the State. Con­servation of soils and native grasses and timber will come to be recognized as economic problems of the first magnitude, and it is apparent that the economic problems presented by conservation of agricultural and forest resources will call for a complete scientific understanding of the material bases out of which these problems have arisen. The great potentials in economic expansion in Texas, are, however, in the field of industry. In this ex­pansion agriculture will participate in no small degree, in supplying consumption products to the expanding markets occasioned by industrial growth, reflected, for instance, in the growing demands upon the dairy in­dustry or upon poultry and egg production. In the long run, however, agriculture will participate to a very significant degree in industrial expansion in still another sense, that of supplying raw materials in large quantities to satisfy the growing demands of new industry, a beginning of which is exemplified to a certain degree, at least, in what is currently happening in the pulp and paper industry in the State. This aspect of the potentialities of agricultural production is one of the most important developments in recent years. The past two decades have amply demonstrated, for example, what the field of synthetic fibers can do in competing with and, to certain extent, in supplanting the older textiles. It may be that in the next few decades the great sur­pluses of staple agricultural products will be viewed as vast annual supplies of raw materials readily avail­able to an expanding chemical industry. Unquestionably, such raw materials as vegetable oils, starches in grains or other farm products, cellulosic materials, and the like, will in the future be demanded by industry in large and expanding amounts. Few states possess the advantages for low-cost, large-scale produc­tion of these commodities which Texas has by virtue of the areal extent and the natural resources of its different natural regions. These natural regions are a function of the wide ranges in the physical environment of the State. This fact of the variety of environmental features and natural resources possessed by its major natural regions stands out as one of the most remarkable features in evaluating the potentialities of agricultural production in Texas. There is, however, another fundamental factor con­nected with the evaluating of agriculture in modern economy; these are the social aspects inherent in agri­cultural life. It is no exaggeration to state that the social aspects of agriculture constitute one of the nation's outstanding problems. And it is precisely this aspect of agriculture that challenges leadership to give the quality of attention merited by a problem of such momentous significance. In conclusion, it would seem that the pressure of events is sufficient to emphasize the importance of the subjects dealt with in this paper. Fortunate indeed is Texas in its capacity to supply vitally needed products in large volume. And fortunate, too, it is for the rest of the country and especially so at this particular time that Texas possesses the natural resources which enable this State to supply those vitally needed commodities. With advancing science and industry the natural resource problem will necessarily come to be recognized as one of the fundamental problems with which the world of tomorrow will have to come to terms. As a matter of fact, there is abundant evidence that the close inter­relationships of science and industry and natural re­sources are being given consideration by industrial and scientific leaders. One illustration may be permitted, one that contains far reaching suggestions. In his introductory lecture in "Oil in the Earth" Wallace E. Pratt reminded his audience that "Lectures by active technologists it might be supposed would tend to diminish the existing pro­nounced lag between the acquisition of new techniques in the field and their incorporation into the curriculum of the professional school. It is true that uniformly in our social order a long period intervenes between the discovery of new facts at the frontiers of industry and their effective dispensation at the established educational centers. But the occasional lecturer cannot contribute much toward eliminating this handicap to progress. The remedy lies elsewhere: probably in some fundamental reform of the system that coordinates science and in­dustry." ELMER H. JoHNSON. Cotton Production Capacity for the South--An Asset or Liability The natural resources and advantages in the South and Southwest for producing a large volume of quality cotton at relatively low cost are unrivaled in the world. From the beginning of cotton production in the United States down to the first World War this capacity to produce cotton was among the nation's greatest assets. Exports of cotton serviced our foreign debts and paid for much of the capital equipment used in developing the country. The whole economy of the South was built on it, and the ever-increasing volume of surplus cotton coming from the South, became the major raw material in the in­dustrialization of Western Europe. In view of the role that cotton produced in the South has played in the South, the nation and the world, how is it possible for so many people even in high authority to refer now to the South's capacity to produce surplus cotton as a liability rather than an asset? What has happened to cause such a radical change in the evalua­tion of our greatest resource? This change has not been due to a reduction in the South's natural capacity to produce cotton, hut to lagging technology in production and manufacture of cotton and to lost markets, largely as a result of politico­economic forces. Cotton growers of the South have lost a large part of their former market in Europe not so much because those countries put tariffs or other restrictions on the import of American cotton, hut partly because the United States placed high tariffs and other restrictions on the import of commodities those countries wished to sell us to get dollars with which to pay for cotton; and partly because our Government has adopted a policy of putting above·market price loans on United States cotton. Bi-lateral trade agreements, blocked exchange quotas, and other similar devices have also played their part in our loss of markets. In recent years, there have been many political devices developed to control markets within the country itself, such as state trade harriers, excise taxes, and sanitary restrictions. Now that the Government itself has become the all-absorbing market, Government specifications de­termine who shall have what market. Government speci· fications of rayon instead of cotton cord for heavy duty army vehicle tires is a striking case in point. The battle of cotton is being fought on three major fronts: (1) economies of production and distribution; (2) technological discoveries and; ( 3) economic politics with equality of access to markets as the major objective. Without access to markets to absorb the volume of our natural advantage and specialized equipment to pro­duce, process, and merchandise cotton, our capacity to produce it in large quantities tends to become a liability. A. B. Cox. TEXAS STATISTICAL COUNCIL On Friday, October 23, the Texas Statistical Council held its regular annual meeting in Austin. The papers presented and the authors were as follows: Problems of Local Taxation, Mr. Curtis Morris, East Texas Chamber of Commerce, Longview. The Petroleum Industry Under War Conditions, Mr. M. G. Cheney, Petroleum Geologist, Coleman. Problems of Price Control, Dr. Bruce L. Melvin, Con­sumer Relation Executive, Office of Price Administration, Dallas. The address of welcome at the luncheon was given by Dr. Edward L. Dodd, Professor of Actuarial Mathe­matics, The University of Texas, Austin. The Changing Aspects of. Retail Distributwn, Mr. Louis R. Sarazan, Comptroller, The Fair, Fort Worth. Problems of War Manpower Supply and Labor Market Analysis, Mr. J. H. Bond, Regional Director, War Manpower Commission, Dallas, presented by Mr. John F. Hilliard, Assistant Director, War Manpower Com· mission, Austin. An Over-all View of Texas Agricultural Productwn in 1942 and an Estimate of Farm Cash Income in Texas in 1942, Mr. V. C. Childs, Principal ~ricultural Statisti­cian, United States Department of Agriculture, Austin; and Dr. F. A. Buechel, Assistant Director, Bureau of Business Research, The University of Texas, Austin. It is intended to bring these papers together in the Proceedings of the meeting. Only sufficient copies will he prepared to supply the needs of present members and prospective new members. However, if we receive specific requests from others than the groups named we shall try to meet them. Such requests should be sub­mitted as soon as possible, and directed to F. A. Buechel, Secretary. EMPLOYMENT AND PAY ROLLS IN TEXAS September, 1942 Eetlmatcd Number of Pcrccnta1e Change Eatimatcd Amount of Perccnta&:c Chana:e Worker• Employed• from from Wockly Pay Roll from from Aug. Sept. Aug. Sept. Aug. cpt. Aug. opt. 1942(1) 1942 <•> 1942 1941 19•12(1) 19-12<•> 1942 19-11 MANUFACTURING All Manufacturing lndustries___ l61,230 162,867 + 1.0 + 4.5 4,080,990 4,211,760 + 3.2 +21.3 Food Products I! ur Baking. 7,613 7,767 + 2.0 + 13.2 191,088 204,616 + 7.1 +29.6 Carbonaled Beverages_____ 2,908 2,964 + 1.9 -11.8 84,319 81,533 3.3 -8.4 Confectionery 1,004 1,067 + 6.2 + 9.1 10,351 11,101 + 7.2 + 17.6 Flour 1illing 1,931 1,913 0.9 + 3.0 38,398 39,559 + 3.0 + 12.5 Ire ream. 1,520 1,455 4.3 + 20.7 32,261 29,619 8.2 +26.7 M at Packing _ _ ______ 6,385 6,162 3.5 + 11.4 180,286 177,425 1.6 +32.1 Textiles Cotton Textile Mills 6,992 6,978 0.2 + 0.5 137,274 138,223 + 0.7 + 13.6 Men's Work Clotbin 5,085 5,156 + 1.4 -j-25.5 71,898 73,777 + 2.6 +34.8 Forest Products Furniture__________ 1,997 2,103 + 5.3 -9.9 31,954 33,628 + 5.2 -25.8 Planing Mills_ 2,607 2,667 + 2.3 + 2.7 73,739 74,267 + 0.7 +20.0 Saw Mills 16,862 17,075 + 1.3 -5.4 245,121 243,515 0.7 -2.9 Paper Boxes 593 601 + 1.4 -11.4 10,811 11,450 + 5.9 -16.9 Printing and Publishing Commer ial Printin 2,461 2,342 4.8 -7.9 61,710 65,179 + 5.6 + 10.9 New paper PuLli hing 4,328 4,641 + 7.2 + -(S) 108,640 114,611 + 5.5 + 1.0 Chemical Products Cotton Oil Mills 2,616 3,584 +37.0 + 11.7 29,871 48,515 +62.5 +66.5 Petroleum Refining 22,621 22,796 + 0.8 + 5.9 896,781 966,046 + 7.7 +20.0 Stone and Clay Products Brick and Tile 2,078 1,822 -12.3 -16.0 32,371 26,558 -18.0 -16.0 Cement 1,346 1,362 + 1.2 + 18.8 49,632 48,895 1.5 +38.1 Iron and teel Products Structural and Ornamental Iron __ 2,803 2,786 0.6 + 3.1 68,462 65,092 4.9 + 12.0 NONMANUFACTURING Crude Petroleum Production___ 26,627 26,107 1.9 -14.8 1,001,410 1,047,221 + 4.6 -6.8 (0 co (0 (4) Quarrying_ 3.5 + 0.4 2.6 + 12.2 (0 co (0 Public Utilities + 0.7 + 7.4 co + 7.2 +27.0 Re tail Trade 185,347 199,372 + 7.6 0.9 3,740,659 4,111,311 + 9.9 + 11.1 Wholesale Trade 66,824 67,881 + 1.6 + 7.2 2,103,752 2,139,733 + 1.7 + 9.9 Dyeing and Cleaning -2,693 2,775 + 3.0 -1.8 44,227 48,921 +10.6 + 9.8 Hotels 15,958 16,164 + 1.3 + 5.3 202,641 204,464 + 0.9 + IO.I Power Laundries 14,714 15,078 + 2.5 +24.1 205,465 211,256 + 2.8 +33.4 CH ANGES IN EMPLOYMENT AND PAY ROLLS IN SELECTED CITIES<•> Employment Pay Rollo Employment Pay Rollo Percenta1c Change Percentaa:e Cbanre Percenla&e Cbanec Pcrccota1e Chan1c Aug., 1942 Sept., 1941 Aug., 1942 Sept., 1941 Au&., 1942 Sept., 1941 Aug., 1942 Sept.. 1941 lO to to to to to to to Sept., 1942 Sept., 19-12 Sept., 1942 Sept., 19't2 Sept., 1942 Sept., 1942 Sept., 1942 Sept., 19-12 Abilen 9.5 + 14.5 5.1 + 16.6 Galveston ---+ 12.6 + 49.8 + 15.3 + 28.4 Amarillo _ _ 1.0 -14.4 + 4.0 + 6.6 Houston + 0.8 + 5.4 + 5.2 + 21.1 Au tin ___ + 13.0 + 23.9 + 9.9 + 28.7 Port Arthur _ 1.4 3.1 + 7.9 + 26.l Beaumont __ + 4.0 + 113.2 + 3.6 +215.9 San Antonio _ 0.4 + 9.7 + 3.7 + 24.5 Dallas __ _ + 3.1 + 5.4 + 5.9 + 19.8 Sherman __ + 4.2 + 4.4 + 9.0 + 26.7 El Paso _ _ + 3.6 + 7.2 + 0.2 + 25.3 Waco ------+ 3.3 + 15.0 + 5.3 + 32.7 Fort Worth + 0.2 + 14.0 + 1.6 + 51.7 Wichita Falls_ + 6.3 + 25.4 + 5.2 + 16.6 STATE --+ 1.9 + 19.5 + 4.9 + 54.0 ESTIMATED NUMBER OF EMPLOYEES IN NONAGR ICULTURAL BUSINESS AND GOVERNMENT ESTABLISHMENTS<~ )94()(1) 1941(1) 1942(1) 194()Cll 1941(1) 1942 January 944,000 1,052,000 1,115,000 July 983,000 1,101,000 1,317,000(1) Febrnary ----­94.3,000 1,092,000 1,131,000 August ----988,000 1,113,000 1,347,000(0)March 965,000 1,086,000 1,175,000 September 1,009,000 1,134,000 April -----­963,000 1,097,000 1,178,300 October _ ____l,022,000 1,141,000May 983,000 1,077,000 1,195,000 November ____l,048,000 1,161,000 June-------982,000 1,084,000 1,291,000 December 1,084,000 1,177,000 •Ooc1 not include proprieton, firm members, ollicen o( corporation1, or other pri,ncipal e:1:ecutive1. Factory employme.ot c:.:cludet also olicc, ule., technical and t:rn~c:i~i::.•l pertonncl. ubjcct to reyieJon. <3> o change. ot including aelf·employcd pertont, cuual workers, or domeetic aenant., and e:.:clulivc o( military and maritime penonncl. Thete 6curea arc fumi.Jhed by the Bureau of Labor tatistics, U.S. Department of Labor. Prepared from. report• from repreeeatati•e Tc.u1 e1tabll1hmente to the Bnre~u of. Bu1ineta Re1oarch coOpeatinc with the Bureau of I..bor Statietlca. Doe ro the nauonal emera:ency, pubUcatioa of data for eertain induttriet ii beJDC wubheld until further notice. SEPTEMBER RETAIL SALES OF INDEPENDENT STORES IN TEXAS Percentage Change! lo Dollar Salea No. of Sept., 1942 Sept., 1942 Year 19-12 Firm• from from from Repo rtin& Sept., 1941 Aug., 1942 Year 1941 TEXAS 1,023 + 9 + 9 + 2 STORES GROUPED BY LINE OF GOODS CARRIED: APPARE Family Clothing Store Men's and Boys' Clothing Stores Shoe Store Women's Specialty Shops AUTOMOTIVE* Motor Vehicle Dealers__ COUNTRY GENERAL DEP'ARTMENT STORES DRUG STORES _ _____________ DRY GOODS AND GENERAL MERCHANDISE. _____________ FILLING STATIONS .. FLORISTS FOOD• Grocery Stores___ Grocery and Meat Stores_______ FURNITURE AND HOUSEHOLD• Furniture Stores JEWELRY LUMBER, BUILDING, AND HARDWARE•____ Farm Implement Dealers___ Hardware Stores.__ Lumber and Building Material Dealers ________ RESTAURANTS_____ ALL OTHER STORES -------­ TEXAS STORES GROUPED ACCORDING TO POPULATION OF OTY: All Stores in Cities of- Over 100,000 Population. 50,000-100,000 Pof:ulation_ 2,500-50,000 Popu ation Less than 2,500 Populatio •Group total ioclude1 kind1 of bu1ineu other than tho <1>Cbancc of lcu than .5%. Non : Prepared lrom report• of indopcndcut retail 1torea PETROLEUM Daily Average Production (In Barrels) Sept., 1942 Sept., 1941 Coastal Texa • 313,900 281,700 Ea t entral Texas__ 84,500 83,900 Ea t Texas 344,550 351,900 orth Texas -----135,500 132,850 Panhandle -----85,150 84,250 ou thwe t Texas ___ 163,100 209,350 We t Texas -----203,900 266,200 STATE 1,330,600 1,410,150 U !TED __ 3,857,500 3,995,700 •Includca Conroe. Non : From American Petroleum lnathute. See accompaoyioc map abowinri the oil producine diatdcta of Te:iaa. Gasoline sales as indicated by taxes collected by the State Comp­troller were: August. 1942, 115,856,000 gallons; August. 1941, 140,221,000 gallooe; July, 1942, 123,529,000 gallona. clu1i6cation1 liatod. 110 +31 +28 +19 28 +45 +17 +31 39 +23 +33 +13 14 +46 +38 +32 29 +32 +27 +18 68 -37 -10 -65 67 -39 -11 -67 90 +22 +11 +19 54 +18 +30 +n 138 +22 -2 +18 22 +18 + 2 +25 34 -4 -5 + 2 26 +16 +16 -1 151 +22 1 +26 48 +27 2 +30 95 +20 -1 +24 82 + 9 + 9 -8 71 +14 + 9 -6 28 +33 +18 +20 185 -5 + 4 +14 12 +13 +15 + 7 62 -2 + 6 + 8 109 -8 + 2 +14 19 +42 1 +19 16 +18 + 8 +24 171 + 9 +17 1 118 +15 +15 + 6 488 + 9 +12 4 246 + 3 + 1 + 6 to tho Bureau of Bu1inc11 Ro1earch coOperating with the U.S. Bureau of tho Cen1u1. DANMA.NOl..l Aug., 19-12 300,050 90,700 375,850 137,900 94,400 191,300 230,200 1,420,400 3,950,000 EPTE '!BER RETAIL ALE OF I DEPENDENT STORES TEXAS CHARTERS TEXAS Sept., Sept., Aur., Year YOl\t' \ 1942 1941 19•12 19•L2 19•11 Percentage Chnnges Domestic Corporations: No. of Sept., 1942 Sept., 19-12 Year 19-12 Firms from from from Capitalization• ------258 411 944 6,767 9,362 Reportina: Sept., 1941 Aug., 1942 Year 1941 Number --------33 53 34 572 636 TOTAL TEXA ____l ,023 + 9 +9 +2 Classification of new TEXA TORE corporations: GRO PED BY PROD CI G AREA Banking-Finance ---0 4 0 8 35 Manufacturing _ _ _ 4 13 7 68 90Di tri t 1-76 +29 + 6 + 7 Merchandising Oil 2 Amarillo ____ 20 +34 +11 -1 ---6 5 6 68 142 Pampa-----14 +14 -3 -3 3 8 42 67 Public Service ___ 1 6 0 Plainvi w ____ 16 +37 + 4 + 9 3 7 All Other ____ 27 + 18 + 3 +17 Real Estate Building_ 9 3 7 215 104 Tran portation 4 1 1 27 23 Di tri t 1-----­23 +24 + 18 +16 --- Lubbo k ------10 + 30 +23 + 16 All Others --------7 18 5 141 168 AII Other ____ 13 + 11 + 8 + 17 umber capitalized at 74 le s than $5,000 _______ Di tri t 2 ------­+22 +23 + 18 19 17 15 289 242 Wi hita Fall __ 13 +12 +13 +18 at Number capitalized All Others ____ 61 +27 +28 +18 $100,000 or more __ 0 1 4 14 16Di tri t 3 -------39 + 10 +26 + 6 Foreign Corporations (Number) Di tri t 4 ______ 214 +20 +21 + 7 39 -9 -------14 8 9 103 128Dalla ------+ 7 +19 Fort Worth ____ 30 +16 +15 + 8 •In thou1and1. herman -----­13 + 10 + 12 +19 NOT& : Compilod from records of cho Secr•tary of Slate. Wa o 21 +29 +23 +10 AII Others ___ 111 +22 + 18 + 14 Distri t 5 _____ 96 +18 +22 + 8 Tyler -------­10 + 13 + 15 + 5 CEMENT AII Other ---­86 + 20 +24 + 8 District 6 -----43 + 19 + 5 + 9 (In Thousands of Barrels) El Pao ___ 23 + 9 + 4 + 2 AlJ 0th rs ____ 20 +so +27 Sept., Sept., + 3 Aug., January I-October 1 1942 1941 Di tri t 7 ----------54 -3 + 10 + 10 1942 1942 1941 an Ang lo ______ _(l.) Texas Plants 11 +19 +11 All Others -----­43 -7 + 2 + 10 Production 1,036 930 1,103 8,998 7,212 Di tri t 8 __ ---160 +21 + 15 +17 Shipments ____ 900 885 1,136 9,385 7,367 Au Lin ------16 + 10 +40 +20 Stocks ----353 749 216 an ntonio ____ 55 + 15 + 13 + 7 AII Others ____ -1 United States 91 +22 +20 Di lrict 9 _____ 115 +13 + 25 Production _ .17,527 16,115 + 10 17,605 134,149 118,600 Beaumont _____ 14 +31 +35 +35 Shipments ____20,150 18,284 21,282 141,274 124,585 Calve ton _____ Stocks _____12,656 12 +23 + 18 +24 17,563 15,295 Hou ton 47 + 1 +21 -2 Capacity All Others ___ 45 + 29 + 25 + 5 Operated -----87.0% 78.3% 85.0% Di tri t 10 _______ 30 + 8 +13 + 9District 10-A ___ 41 +21 -12 +16 NOTE: From U.S. Department of Interior, Bureau of Mine• Brownsville 11 +18 -14 +15 1 All Others ____ 30 +22 -10 +17 U>Clurnac of leis than .5%. COMMODITY PRICES NoT1t: Prepared from reports of independent retail stores to the Bureau of Bu1ineu Rucarch coOperating with the U.S. Bureau of the Census. Sept., Sept., The total number of firm reporting doea not check exactly with the totala of 1942 1941 the cities hccau e some motor vehicle dealers whose aalea varied radically from Wholesale Prices: the anles of other stores in their re pcctive citie1 wero omitted when working the U. S. Bureau of Labor Statistics p rcentag• chani:tcs for tho!c cities. Thia was done only when the aaiea of motor (1926=100% ) vehicle dealer were an unu ually large proportion of the total aalca of a city. 99.6 91.8 99.2 Farm Prices: U. S. Dep't of Agriculture TEXAS CO 1MERCIAL FAILURES (1910-'14= 100% ) • 139.0 163.0 U. . Bureau of Labor Stati tics Sept., Sept., Aug., January l -October 1 19-12 1941 19•12 (1926= 100%) 1942 1941 107.8 91.0 106.1 umb r ------5 13 8 112 209 Retail Prices: Liabilitie • ____ 89 113 72 1,705 $3,763 A et• ____ 14 Food (U. S. Bureau of Labor 58 51 1,203 1,812 Statistics, 1935-'39=100%) __ 126.6 Average Liabilities 110.8 126.1 Dep't. Stores (Fairchilds Pub­per failure• __ 18 9 9 15 18 lications, Jan. 1931=100%) _ 113.1 105.2 113.1 •Jn thouunds. • ot available. Non : From Dun and Bradstreet, lac. POSTAL RECEIPTS Sept., 19-12 Sept., 1941 Aui:., 19-12 Year 194~ Year 1941 Abilene $ 30,012 $ 20,954 $ 26,173 $ 256,836 $ 240,604 Amarillo 42,285 33,600 40,214 330,209 304,495 Austin 78,145 76,361 84,316 706,625 666,141 Beaumont -----------­31,826 27,764 32,868 283,927 255,532 Big Spring ------------­7,783 5,737 7,556 63,737 57,360 Brownwood -----------­12,712 9,290 11,826 143,592 127,721 Coleman 3,153 2,738 3,104 28,402 23,195 Corpus Christi 44,299 39,006 41,848 379,588 314,935 Corsicana 7,833 6,577 8,747 62,943 53,588 Dallas 430,476 427,844 384,581 3,571,359 3,568,809 Del Rio ------------­3,524 3,722 3,474 30,557 47,495 Denison --------------­58,366 7,318 6,475 7,631 65,565 Denton -------------8,220 7,280 6,137 74,030 67,893 Edinburg_______________ 3,015 3,218 3,501 • • 61,473 59,336 58,366 543,746 542,952El Paso ----------­ Fort Worth -------·----­191,262 178,849 163,062 1,491,573 1,360,233 Galveston 38,510 32,229 34,729 333,832 306,568 Gladewater ------------------­3,032 2,894 2,470 27,749 25,942 Graham 2,669 2,617 2,367 22,020 20,923 Harlingen 7,946 6,841 7,146 65,073 58,889 Houston 291,036 268,549 272,258 2,519,844 2,429,673 Jacksonville 3,592 3,268 3,350 34,162 31,259 Kenedy 1,699 1,277 1,688 18,901 12,605 Longview 9,957 8,752 9,447 88,280 86,674 Lubbock 33,849 25,644 21,625 217,562 188,579 McAllen 4,896 4,374 4,480 45,909 43,789 Marshall 9,291 6,502 8,583 74,499 57,993 Pampa 7,858 6,677 6,923 64,024 61,297 Paris 10,139 7,136 9,193 75,436 56,146 Plainview 4,924 4,313 4,059 39,317 36,719 Port Arthur -----18,386 14,620 16,907 153,173 129,843 San Angelo ------------­15,015 13,805 14,501 132,028 120,376 San Antonio·---180,829 146,268 170,066 1,488,052 1,306,816 Sherman 9,615 7,900 8,603 79,627 69,555 Snyder 1,727 1,398 1,687 • • Sweetwater -----------­5,090 4,912 5,714 48,520 45,599 Texarkana 20,349 16,910 19045 • • Tyler 15,211 16,121 16:401 144,231 142,354 40,504 37,294 37,995 Waco --------------337,847 318,220 Wichita Falls ------------34,687 29,267 30,535 338,455 235,170 $ 1,734,147 $ 1,578,319 $ 1,593,176 $14,381,230 TOTAL -~--------~ $13,474,308 • Not available. Non: Compiled from report11 from Texas chamber1 of commerce to the Bureau of BusincBS Research. SEPTEMBER SHIPMENTS OF LIVE STOCK CONVERTED TO A RAIL-CAR BASIS• Cattle Calve• Hoc• Sheep Total 1942 19'1 1942 1941 1942 1941 1942 1941 1942 1941 Total Interstate Plus Fort Worth 5,039 3,559 1,863 1,669 1,041 623 1,988 1,322 9,931 7,173 Total Intrastate Omitting Fort Worth ___ 767 465 153 186 51 20 543 472 1,514 1,143 TOTAL SHIPMENTS 5,806 4,024 2,016 1,855 1,092 643 2,531 1,794 11,445 8,316 TEXAS CAR-LOT• SHIPMENTS OF LIVE STOCK, JANAURY I-OCTOBER 1 Cattle Cal Yeo Hoc• Sheep Total 19'2 1941 1942 1941 1942 1941 1942 1941 1942 1941 Total Interstate Plus Fort Wort 42,881 30,183 8,769 8,001 9,176 7,679 9,689 7,772 70,515 53,635Total Intrastate Omitting Fort Worth ___ 4,818 3,446 972 1,090 231 138 928 801 6,949 5,475 TOT AL SHIPMENTS 47,699 33,629 9,741 9,091 9,407 7,817 10,617 8,573 77,464 59,110 •Rail-car Ba1i1: Cattle, 30 head per car; calve•, 60; hos-1. 80; and 1beep, 250. Fort Worlh 1bipment1 are combined with intentate fonrard.in11 In order that the bulk or market ditappearance for the month may be ihowo. NOTE: These data are !urni1hed the United Stites Buieau of Acricultural Ecooomic1 by railway offici1h throu&:h more than J,500 itation agent• repreaentins every live •tock 1bippin1 point in the State. The data are compiled by the Bureau of Buli.neH Reaearcb. ' BUILDING PERMITS Sopt., 1942 Sept., 1941 Aug., 1942 Year 1942 Year 1941 $ 11,340 $ 9,485 $ 4,280 $ 1,168,703 $ 727,279Abilene Amarillo 34,339 247,736 57,800 t 2,011,453• Austin 17,067 433,179 59,442 1,512,959 4,310,568 Beaumont 42,165 148,796 36,384 3,485,564 1,793,155 Big Spring ----------­ 35,435 10,036 4,156 84,593 154,611 Brownwood soo• i• 3,255. t t Coleman____________ 500 7,300 1,385 t 181,009. Corpus Clui ti ---------­55,738 417,353 236,870 3,846,345 11,032,856 Corsicana 3,400 9,900 1,575 153,434 141,442 Dallas 191,851 1,120,644 206,323 5,655,750 12,278,624 Del Rio 2,322 12,618 9,475 t so,075• Denton ------------­ 740 20,850 535 42,313 294,279 Edinburl'r-------------­2s9• t 333• t t El Pao 44,883 . 145,534 13,968 1,954,222 2,235,541 Fe:rt Worth--------­136,965 386,250 136,965 9,754,404 5,075,916 Galve ton 23,189 132,041 31,317 1,397,280 3,636,219 Gladewater.------------------0 0 0 4,610 16,030 Grabam_____ 0 2,160 160 18,008 62,747 Harlingen 6,500 43,700 805 96,100 287,695 Houston 61,720 1,498,866 181,985 10,865,184 15,346,880 Jacksonville _____________ 600 10,610 700 13,100 78,126 Kenedy___________ 0 0 0 2,990 37,835 Laredo ------------­i,ioo• t 1400• t t Longview 1,325 9,020 l :s25 33,055 149,515 Lubbock 13,939 260,133 15,095 2,030,174 2,820,352 McAlle, ,____._____ 2,495 13,233 3,950 143,298 165,388 Marshall 10,920 25,198 8,085 180,654 379,668 Midland -----­1,775 49,120 950 278,105 433,900 New Braunfels ----­1,905 7,245 1,410 37,399. t Pampa 1,750. 30,410• t 145,300 243,690 Paris 8,120 27,235 9,195 153,923 204,688 Plainview 1,650 4,540 998 10,205 59,939 Port Arthur -----------12,729 113,860 7,391 302,632 945,169 an Angelo ___ 4,765 88,124 9,320 244,840 605,905 an Antonio ----------­181,956 790,431 291,874 3,828,668 5,600,083 hennan 24,436 38,418 23,940 321,609 276,677 nyder 0 t 0 18,600• t Sweetwater 850 9,100 870 60,108 124,960 Texarkana_ ________ 6,916 83,498 524,014 t t Tyler 6,271 42,046 9,918 199,161 551,818 Waco 75,483 159,086 92,352 1,019,810 2,521,147 Wichita Falls ---------51,115 250,723 47,725 517,956 2,375,977 TOTAL ·---------___ _ $ 1,075,404 $ 6,558,068 $ 2,033,038 $59,525,051 $74,968,679 • ot incJuded in total. tNot available. Non: Compiled from reports from Texas chambers of commerce to the Bureau of Business Research. COITON BALANCE SHEET FOR THE UNITED STATES AS OF OCTOBER 1 (In Thousands of Running Bales Except as Noted) Year Carryover Au g. I Imports to Oct. 1• Governm ent Estimate u of Oc t. 1• Total Conaump· tion to Oct. I Expotta to Oct. I To tal Balance Oc t. l 1933-1934 1934-1935 1935--1936 1936-1937 1937-1938 1938-1939 1939-1940 194()...1941 1941-1942 1942-1943 8,176 7,746 7,138 5,397 4,498 11,533 13,033 10,596 12,376 10,590 23 19 14 22 14 29 22 14 69 t 12,885 9,443 11,464 11,609 17,978 12,212 11,928 12,741 11,061 13,818 21,084 17,208 18,616 17,028 22,490 23,774 24,983 23,351 23,506 24,408 1,088 714 859 1,205 1,206 1,093 1,255 1,289 1,750 1,891 1,400 706 728 752 838 590 644 156 255 t 2,488 1,420 1,587 1,957 2,044 1,683 1,899 1,445 2,005 1,891 18,596 15,788 17,029 15,077 20,446 22,091 23,084 21,906 21,501 22,517 •In 500-pound Daiei. t ot available. The cotton year begine in August. SEPTEMBER CREDIT RATIOS IN TEXAS DEPARTMENT AND APPAREL STORES (Expressed m Per Cent) Number Ratio of Rntio of Rntio of of Credi t Sato1 Coll oc ti on1 10 Credit nl11rica Stores to Net Snlos 011 tst11nclinga 1o Credit Sn lea Reporting 1942 19•11 1942 1941 1942 1941 All Stores,_ ___ _ 55 54.9 67.9 54.2 40.4 1.0 0.8 Stores Grouped by Cities: Abilene -----------------------------------------------------------------­ 3 46.2 59.7 14.0 29.3 1.4 1.5 Austi ---------------------·-----------­ 6 46.9 60.7 64.6 47.4 1.2 1.0 Dallas--------------------------------------­ 9 64.2 75.4 55.8 40.7 0.7 0.5 Fort Worth----­-----------------------------------------­Houston____________________________________________ 5 6 53.5 59.1 66.1 66.4 54.5 53.4 38.0 40.3 1.1 1.0 1.0 0.9 San Antonio----------------------­---------------------­Waco_____________________________________________________ All Others_____________________________________ 5 3 18 41.6 44.8 47.9 58.1 55.5 62.4 59.4 63.0 57.4 45.7 34.1 38.3 1.6 1.2 1.1 1.2 1.5 1.0 Stores Grouped According to Type of Store: Department Stores (Annual Volume Over $500,000) ________________ Department Stores (Annual Volume under $500,000) ____________ Dry-Goods-Apparel Stores____________________ __________________ 17 10 12 55.0 44_4 49.1 66.8 57.7 62.2 59.0 27.5 56.7 43.4 33.2 42.3 1.0 1.3 1.6 0.8 1.4 1.4 Women's Specialty Shops----------------------------­Men's Clothing Stores____________________________________ 13 13 57.4 54.7 73.8 67.0 50.1 56.4 36.l 35.7 0.5 1.2 0.3 1.1 Stores Grouped According to Volume of Net Sales During 1941: Over $2,500,000___________________________________ 10 59.0 68.8 60.8 46.3 LO 0.8 $2,500,000 down to Sl,000,000....------­------------------­$1,000,000 down to $500,000__________________________________________ $500,000 down to $100,000____________________________ Less than $100,QOO___________ ____________________ 10 7 25 3 47.6 49.9 36.6 60.4 64.1 61.3 53.8 71.3 56.1 61.3 56.l 51.4 39.9 39.4 40.4 42.6 Ll 1.1 1.8 1.8 1.0 1.1 1.5 2.5 NOTE: The ni.tioa shown for each year, in the order in which they appear from left to right nre obtained by the following computations: (1) Credit Snlca divided by Net Saleal ; (2) Collectione during the month divided by the total accounts unpaid on the first of the month; (3) Salaries of the credit depnrlmont divided by credit 1ale1. The data are reported to the Bureau of Business Rc11earch by Texas retail stores. SEPTEMBER, 1942, CARLOAD MOVEME TS OF POULTRY AND EGGS Shipments from Texas Stations Cars of P oultry Cnro of Eggs Dreased Shell Destination• Chick.en• Turk.ey1 Shell Frozen Dried Eczuivalentt September September 1942 1941 l !).i2 1941 1942 19.U 1942 1941 1942 1941 1942 1941 TOTAL 9 19 2 3 5 16 8 61 61 51 509 546 Intrastate 3 0 0 0 4 1 3 0 0 0 10 1 Interstate 6t 19 2 3 1 15 5 61 61 51 499 545 Receipts at Texas Stations Origin TOTAL 1 35 9 2 69 Intrastate 0 11 0 2 27 Interstate 1 24 9 0 42 •The destination above i11 the first destination a11 shown by the ori&inal waybill. Change11 in destination brought about by diversion orders are not shown. fln c ludes 1 carload of live chickene. %Dried eggs and frozen eggs are converted to a 11hell egg equivalent on the following buis: 1 rail carload of dried eggs = 8 cnrloade of shell eggs, and I carload of frozen eg:ga = 2 carloads of ahell cgg:11. Non : Thcae data arc furnished to the Divi11ion of Agricultural Stati11tic11, B. A. E., by ra ilroad officials through agents at all etation11 which originate and receive car­load ahipmenu of poultry and eggs. The data are compiled by the Bureau of Business Research. BANKING STATISTICS (In Millions of Dollars) DEBITS to individual accounts_____ ___ Condition of reporting member banks on- ASSETS: Loans and investments-total________ Loans-totaL Commercial, indu trial, and agricultural loans_______ Open market paper ---------­ Loans to brokers and dealers in securities___________ Other loans for purchasing or carrying securities_____~ Real Estate loans Loans to banks_____ Other loans.. Treasury Bills________________________ Treasury Cert. of indebtedness____________ Treasury Notes____________ U.S. Bonds. -----­ Obligations guaranteed by U.S. GovernmenL______ Other Securities -----------­Reserve with Federal Reserve Bank_ Cash in Vault Balances with domestic banks_ ____ Other Assets-net --------­LIABILITIES: Demand deposits-adjusted• -----------------­Time deposits --------­ U.S. Government deposits______________ Inter-bank deposits: Domestic banks__________ Foreign bank Borrowings Other liabilities.. Capital accoun • Not Available. Non : From Federal Rerserve Board. LUMBER (In Board Feet) Sept., 1942 Sept., 1941 Aug., 1942 outhern Pine Mills: Average weekl y per uni t ___ production 273,578 332,137 291,356 Ave rage weekly per unit ___ shipments 314,416 355,373 340,968 Average unfilled orders per unit, end of m ontb___l ,742,571 1,490,245 1,558,860 'on : From Southern P ine .Auociation. Sept., 1942 Sept ., 1941 Aug., 1942 Dallas United Dallas United Dallas United District States District States District States $ 1,411 $52,704 $ 1,102 $42,121 $ 1,374 49,180 Sept . 30, 1942 Oct. l, 1941 Sept. 2, 1942 843 35,954 644 29,125 792 34,457 302 10,361 344 11,024 305 10,382 213 6,270 235 6,447 220 6,282 1 2'l2 2 397 1 313 2 526 3 494 2 493 15 381 14 428 13 381 20 1.221 23 1,257 21 1,230 65 1 39 26 51 1,616 66 1,962 48 1,657 77 2,337 39 785 68 2,239 81 3,071 t t 74 2,273 75 3,283 34 2,280 44 2,753 209 11,257 117 7,917 202 11,220 39 2,106 49 3,319 40 2,095 60 3,539 61 3,800 59 3,495 232 8,618 164 10,792 228 9,379 17 496 14 537 16 473 262 2,526 301 3,596 266 2,635 32 1,220 31 1,200 32 1,194 749 130 56 27,424 5,162 2,041 593 133 35 24,277 5,429 599 733 131 39 27,217 5,137 1,532 350 1 8,527 676 2% 1 9,669 624 331 1 8,681 679 53 1 2 6 958 5 772 5 915 94 3,973 91 3,888 94 3,975 PERCENTAGE CHANGES IN CONSUMPTION OF ELECTRIC POWER Sept., 1942 Sept., 1942 Jan. !-Oct. l, 1942 from from from Sept., 1941 Aug., 1942 Jan. I-Oct. l, 1941 Commercial ---------------12.4 1.2 -9.9 Industrial ----------------+ 44.0 6.2 +49.9 Residential ----------------0.5 1.9 + 8.7 All Others --------------+ 19.7 7.7 +40.7 TOTAL ------------------+ 18.2 4.8 + 25.1 Prepared from report8 of 11 electric power companie1 to the Bureau of Bu11inc81Research. GRAPHIC AND -STATISTICAL SUMMARY OF THE DAIRY INDUSTRY WITH SPECIAL REFERENCE TO TEXAS By F. A. Buechel, Assistant Director and Statistician, Bureau of Business Research, The University of Texas. Dollar. This report by means of text, charts, and tables, presents a detailed and comprehensive statistical analysis of the dairy industry of Texas together with data which afford a picture of the industry, national and inter­national in scope. Developments and exigencies of today have made necessary the publication of this bulletin in preliminary form and those interested in the dairy industry whether from' a local, national, or international standpoint, will find in it the answers to many vital questions regarding all branches of dairy production, particularly with ref­erence to the industry in Texas. Included in the summary are forty-eight graphic charts which clearly illustrate detailed facts concerning all phases of the dairy industry. These charts depict sharply the position of Texas as both a producer and consum~r of dairy products; they show the trends and comparisons between countries, between states, and between the crop reporting districts of Texas. The locations of the different dairy products manufacturing plants are shown on a series of maps. A total of 131 statistical tables provides statistical in­ formation covering every branch of the dairy industry for the nation, for individual states, and for all Texas August, 1942. Price One counties grouped by crop reporting districts. For ex­ ample, Table 126 entitled, "Value of Milk Used in the Manufacture of Dairy Products in Texas, by Districts" shows the amount of creamery butter, ice cream, American cheese, cream cheese, and concentrated milk products manufactured in Texas from 1932 to 1940 in­ clusive. ' A paragraph included in the introduction states briefly: . "The present preliminary report is composed essen­ tially of three parts-general quantitative facts concern­ ing the dairy industry in international trade, designed to show the relative position of the United States in this trade; somewhat more specific quantitative facts con­ cerning the dairy industry in the country as a whole and certain geographical divisions thereof, with a view to presenting the Texas dairy industry in something of its national ~nd regio~al quanti!atiye setting; and, finally, coi_nparatively de~a1le? quantit~tive facts concerning the dairy manufacturmg mdustry m Texas, and particularly the subdivisions of Texas as represented by the crop reporting districts which are based upon the natural regions of the State." CLARA H. LEWIS. CONTENTS Business Review and Prospect, F. A. BuecheL·----------------------------------------------------------------------------------------------!aga Cotton Production Capacity for the South-An Asset or Liability, A. B. Cox-------------------------------------------------------8 Natural Resources, Science, and Industrial Organization in the Rapidly Changing Texas Scene, Elmer H. Johnson -----------------------------------------------------------------------------------------------------------------------------------------------------4 Texas Stati3tical Council ------------------------------------------------------------------------------------------------------------------------------------8 Announcement of the Publication of Graphic and Statistical Summary of the Dairy Industry with Special Reference to Texas, Clara H. Lewis .. -----------------------------------------------------------------------------------------------------------------16 LIST OF CHARTS Indexes of Business Activity in Texas ..--------------------------------------------------2 Trend of Annual Farm Cash Income By Products in Texas, 1927-1941 ---------------------=----=----==::::=:::::::::===--===:=--=--== 1 LIST OF TABLES Banking Statistics ---------------------------------------------------15 Building Permits ------------------------------------------------------13 Carload Movement of Poultry and Eggs__________________________ -------------------14 Cement -------------------------------------------------------11 Charters ------------------------------------------------------11 Commercial Failures ------------------------11 Commodity Prices 11 Cotton Balance Sheet ----------13 Credit Ratios in Department and Apparel Stores______ 14 Employment and Pay Rolls in Texas 9 Lumber -15 Percentage Changes in Consumption of Electric Power_ l5 Petroleum 10 Postal Receipts 12 Retail Sales of Independent Stores in Texas 10, 11 Shipmenta of Livestock 12