TEXAS BUSINESS REVIEW 

A Monthly Summary of Business and Economic Conditions in Texas 
BUREAU OF BUSINESS RESEARCH mE UNIVERSITY OF TEXAS 
VOL. XXVII No. 6 TWENTY CENTS A COPY-TWO DOLLARS A YEAR 	JULY 1954 
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Cotton Textiles: 
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An Opportunity 1n Texas
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This month's special report on Texas business (page 15) shows why Texas is the t prime location for construction of new cotton mills. 
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LEGEND
* Otsrinafion 
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• U1 ban1ud Art1s 
-lreaking point on fin ished 
goods for Texas mills 
---Breaking poinf on unlinishd 
gotds for Texas mills 


Et3:'3 	Secondary mcrketing 
or111 for Texas mills ,......··· 

The primary marketing area for Texas textile mills stretches across the map from the West Coast to the Mississippi Valley. In the gray area east of the Mississippi, Texas mills can often compete with eastern producers. These marketing areas are mapped on the basis of shipping rates from mills (white stars) to major distribution points (black stars). The black dots show where major cities are located in Texas' potential market area. 
The Business Situation in Texas 

Business barometers compiled by the Bureau of Business Research during May continued to support the view ex­pressed in these columns for the past two months that the decline in Texas business activity has ended. The record for May was not quite as good as for April in Texas. But during the past month more and more business analysts have taken an increasingly optimistic stand concerning the future of business, as the national business barometers levelled off or turned up. 
The index of Texas business activity dropped three points from the level of April, leaving the May index two points below a year ago. In May 1953 the index had dropped seven points from the previous January level, while in May 1954 the index was four points higher than in January 1954. 
On this January-May basis, the index of Texas business made a much better showing than the index of industrial production in the United States, compiled by the Board of Governors of the Federal Reserve System. The May index for the nation turned up, the first rise in ten months. The upturn in industrial production for the United States was widespread, with the individual indexes for durable goods, nondurable goods, and minerals all registering increases. Most of the major industry groups equalled or exceeded their April levels. 
The component series in the index of Texas business activity showed more declines than increases. Two series, freight carloadings and building permits, rose between April and May, while the remaining five componeDts de­clined. In comparison with their year-ago levels, two series registered increases, one no change, and the remaining four series declined. The increases over a year ago were in electric power consumption and industrial power con· sumption; building permits showed no change. 
The detailed changes in the seven components of the in­dex are shown in the following table. It is wise to remember in making use of the composite index of business activity in Texas that it represents the average change in a number of different phases of business in the state. Sometimes signifi. cant trends appear in the individual components that are as important as the average change in total activity. 
INDEX OF TEXAS BUSINESS ACTIVITY AND COMPONENT SERIE!! 
(adjusted for seasonal variation, 1947-49=100) 

May  A pr  Percent  
Index Weigh t  1954  1954  change  
INDEX OF BUSINESS ACTIVITY  
( COMPOSITE ) ---------­--·­100.0  141*  144*  
Total electr ic power consu mption_____________ _ 3.0  206  21 2  
Crude runs to s t ills -------------------·---------­3.9  130  135  4  
Crude petroleum production ---------------­8.1  120  128  6  
Urban building permits, adjusted for  
price changes -----------------------------­9.4  122*  120*  + 6  
Miscellaneous freight carloadings ----­--­10.0  95  90  + 6  
Industria l electric power consumption_ _ 14.6  212  214  
Retail sales, adjusted for price changes__ 51.0  134*  138  

*Preliminary. 

Consumer spending, as measured by the Bureau's index of retail sales in Texas, declined 3% from April, but the May index was still at its second highest point in 1954. This index is adjusted for seasonal variation, but the fact that Easter came so late this year probably pushed a dispro­portionate share of the spring business into April, which resulted in a somewhat abnormal increase in April sales. 
In spite of the rather erratic variations in the index of retail sales, there has been a general upward movement in consumer spending in the first five months of 1954, with most kinds of goods reporting an improvement. Durable 
Texas Business Activity 
Index • Adiusted for seasonal variation • 1947-1949 •100 


1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 

JULY 1954 
goods have made a somewhat better showing than non­durables. One striking feature of the retail business has been the increased selling effort put forth by merchants, and there is no indication that selling will be any easier in the immediate future. However, consumer incomes re­main high, and sales can be made if the businessman will put forth sufficient effort. It appears that the really com­petitive buyers' market that characterized prewar business has finally returned. Furthermore, it gives promise of re­maining as long as there is no further immediate threat of war. 
The increase in retail sales has been accompanied by a 

rise in installment credit outstanding, which has offset some 
of the drop in personal income during the past six months. 
Income payments to individuals in the United States have 
been declining since October, and although these data are 
not available for Texas on a monthly basis, it seems likely 
that income of Texas individuals has also been declining. 
The increased use of installment credit will have the same 
effect on retail sales as an increase in income. For the first 
three months of 1954, repayments of installment obliga­
tions exceeded new credit extended, with the result that 
the total amount of credit outstanding declined. During 
April new credit extended slightly exceeded repayments, 
and the total outstanding rose. 
The large inventories of all kinds of goods, so conspicu­

ous a part of the business picture during 1953, are slowly 
being reduced as the rate of sales exceeds the volume of 
production. The lower volume of sales, however, reduces 
the size of the inventory needed. As long as inventories are 
decreasing, it means that sales are being made from stocks, 
and production will not maintain a level equal to the level 
of consumer buying. This is the reverse of the stimulating 
effect of inventory accumulation, when consumers buy less 
than the factories are producing and the difference goes 
into inventory. 
One of the striking features of the present decline in busi­

ness has been the stability of commodity prices.And as long 
as prices do not drop precipitously, there is not a strong 
incentive to liquidate inventories. Businessmen have been 
trying to work off the accumulation of goods by vigorous 
promotions and judicious reductions in price, but there has 
been no distress selling, such as typically accompanies 
major cyclical declines in business. 
Consumer spending represents the largest segment of 

Texas business, although it is not the most influential fac­
tor in determining the fluctuations in business. In general, 
consumer spending depends upon income expectations, and in a sense its fluctuations are more a result of changes in other elements of the economic situation than a casual fac­tor. It appears that business analysts have tended to over­emphasize the importance of consumer spending as a cause of changes in business activity. A more profitable type of analysis might be to study the reasons why income changes have occurred; explaining these changes will have the ef­fect of explaining why business volume has fluctuated. 
The most dynamic elements of the boom in Texas busi­ness since 1950 have been the expenditures of the govern­ment for munitions; the expenditures of business for new plant and equipment; and the other types of construction, such as homes, stores, churches, and schools. The tre­mendous increase in capital formation in Texas has been the greatest single factor in the high level of business, and the same holds true for all other sections of the country. 
The fact that building and industrial expansion have continued with very little reduction during the past twelve months is the major reason the level of business in Texas has declined so little. The Bureau's index of building for the first five months of 1954 was 11 % above the average for 1953, and there is no sign of any slowing down. 
The Department of Commerce has just announced the results of-its May survey of anticipated capital expendi­tures by business, and the indicated annual rate of ex­penditures in 1954 is within 5% of the record $28.4 bil­lion spent in 1953. Manufacturing concerns anticipated some reduction in capital expansion, but public utilities, oil pipelines, and airlines expected to increase their expendi­tures. There is a strong indication in the figures for Texas business that capital expansion in the state will be at a higher rate than the average for the United States. 
The index of bank debits in Texas cities, computed from 

the data compiled by the Federal Reserve Bank of Dallas, 
showed no change in the level of business transactions in 
May. The average of this index for the past three months 
has been higher than for any previous month. Since it rep· 
resents the changes in the dollar volume of business trans­
actions in the principal cities of the state, it offers confirma­
tion of the trends shown in the other barometers used in 
the analysis of the current business situation. 
In periods of rapidly changing prices, this index is in­

fluenced by the price level as well as by the volume of busi­
ness transacted, but prices have shown little change over 
the past year, and this index in its present form measures 
essentially the change in the volume of total business 
activity. 
JoHN R. STOCKTON 

Bureau of Business Research Publications 
A complete listing of Bureau publica­tions now available and of current in­terest will be mailed upon request. Eight regular series are listed as well as current publications and miscellaneous series. 

TEXAS BUSINESS REVIEW 

Robert H. Ryan--------·---Mana.iring Editor 
College of Business Administration, The University of Texas 
William R.. Sprlegel___________ _ _ ___ _Dean 
Business Research Council 
Wflllam R. Sprlegel (e2' o61cio), A. Hamilton Chute, F. L . Cox, Elisabeth Lanham, R. H . Montgomery, G. H. Newlove, and Charla 
E. Walker. 
STAFF OF THE BUREAU 
OF BUSINESS RESEARCH 
John R. Stockton Stanley A. Arblngaet Florence Escott Director Aamta"t Director Reeearch SMpen1iaor Re110Urcri Specialiat 
Statiaticio" Ren..,.,,h As80ciat<I Retailiftg Specialiat 
Robert H. Ryan Alfred G. Dale Anne K. Schuler 
ReeeGToh Auociat<I Reaearch Auociat<I Research Aamtant 
Jo Overstreet 
William 8. Lowe 
Calvin Jayroe Martha Ann Moore Cecilia Pingenot 

Of/aet Pren Operator Statistical Aaaiata..ta Publicatiofta Aaaiataftt 
Judy Vaugh&n Bonnie Thornhill Mariorie T . Cornwell Yvonne Hawn 
Secntarie• Administrative Cl6Tk Statistical Cl6Tk 
Alice R. Locklin 
Li"brart1 Asoiota"t 
Assistants 
Pierce Arthur, Jr., Nellie Marie Barnes, Marilyn Biel, Maurice Friedman, Benny Hill, Vera Jeffrey, David Lewis, Don Noble, Candis Pattillo, Tin& Piedrahita, William E . Wright, and Sharon Young. 
Cooperating Faculty 
A. B . Cox E'llzabeth Lanham 
Profel#rOr of A..ociate Profe8eor Cotto" Marketing of Management 
TABLE OF CONTENTS 
The Business Situation in ,Texas ·------------------------------2 Construction --------------------------···--------------------------------4 Retail Trade ----------------------------------------------------------------6 Industrial Production ---------------------------------------------8 Agriculture ----------------------------·. ---------------------------------10 Finance -----------------------------------------------------------------12 Labor ------------------------------------------------------------------------14 
Cotton Textiles: An Opportunity in Texas 15 Local Business Conditions ------------------------------------------18 Barometers of Texas Business -----------------------------------24 
Published monthly by the Bureau of Bualueeo Research, College of Business Administration, The University of Texas, Austin 12. Entered as second clasa matter May 7, 1928 at the poot office at Austin Texas, under the act of August 24, 1912. Content of this publication is not copyrighted and may be reproduced freely . Acknowledgement of source will be appreciated. Subscription, $2.00 a :year: individual copies, 20 cent.a. 
CONSTRUCTION 

The value of building permits issued in Texas declined 4% from April to May, but if a normal seasonal drop of 6% is taken into consideration, building activity actually gained about 2%. 
Additions, alterations, and repairs constituted the only major type of building showing an increase (+9%). However, the construction of hotels, tourist courts, and other nonhousekeeping residential building, a relatively small category dollarwise, did increase by a very substan· tial 313%. 
Nonresidential building decreased 6% from April to May while residential housekeeping building receded slightly more (-7%). In spite of the significant drop in value of housekeeping residential building, the number of 
Value of Urban Building Authorized in Texas 
Index • Adjusted for seasonal variation • 1947-1949 • 100 


permits issued for dwelling units in Texas was practically as high in May (4,851) as in April (4,861). This is ex· plained by the authorization of an unusually large number of inexpensive apartment houses in small cities during May. 
The value of building permits issued in Texas during the first five months of 1954 exceeded that of the same months last year by about 4%, but rising construction costs are the prime factor behind the overall increase. After adjustment for a climb of more than 5% in building costs, the estimated physical volume of construction for which building permits have been issued so far this year is slightly more than 1%below that of the comparable period in 1953. 
Based upon the reports of construction contractors in the state, the Texas Employment Commission estimates that the greatest gains in employment during June took place in the construction industry. All but two of the 17 major labor market areas of the state reported prospective construction increases. Street and highway jobs will be added to the number called for by building contractors busy on com· mercial, industrial, school, hospital, and residential struc­tures. Contract construction employment increased 3% from April to May compared to less than 0.2% for all non· agricultural employment. Both of the above employment categories are below the levels of last May, however (-3% and -0.5%, respectively). 
Labor-management dispute activity stepped up a little in April. The largest number of workers off the job at the first of May were in the construction industry, where 710 were listed in eight disputes. 
Building activity in small cities at high levels. The value of building permits in cities with less than 25,000 people gained 9% on the average from April to May. Losses averaged -8% in cities with over 100,000 popu· lation, -9% for cities between 50,000 to 100,000 persons, and -13% in cities with 25,000 to 50,000 people. 
Building values during the first five months of this year compared to a like period of 1953 are at a higher level in all city.size groups except the 50,000-to.100,000 classifi­cation in which the change was -9%. Cities with 25,000 to 50,000 population are up more ( +18%) this year than cities of over 100,000 population ( +8%) or cities with under 25,000 people ( 3%). 
National outlook estimates upgraded. National ex­penditures for new construction are expected to reach a new record high of $36 billion in 1954, almost 2% above last year's record level of $35.3 billion, according to revised outlook estimates prepared jointly by the U. S. Depart­ment of Commerce and the U. S. Department of Labor. This revised estimate is $2 billion higher than the $34 billion level projected for 1954 by these agencies last November. Present expectations of a 2% increase in 1954 construction activity over 1953 contrasts with a 2% de­cline anticipated by the Commerce and Labor Departments in November 1953. 
The more optimistic construction outlook at the present time results largely from a higher level of new home build­ing so far this year than was expected last November. Most other types of civilian construction also are showing greater activity than previously anticipated, and they are expected to reach record or near-record levels. 
Current indications are that 1,080,000 new private non· farm dwelling units will be started this year; it was an· ticipated earlier that there would he less than a million starts during 1954. On a seasonally-adjusted basis, private starts have been at an annual rate of well above 1,100,000 units for the first third of the year. The projected $10.7 billions of expenditures on privately-financed new dwelling unit construction represents a total slightly above that for 1953. Eased mortgage opportunities have been widely 
ESTIMATED VALUE OF BUILDING PERMITS ISSUED 

Source: Bureau of Business Research in cooperation with Bureau of 
Labor Statistics, U.S. Department of La.bor 

J anuary-May  
Classification  May 1954•  1954  1958  Percent change  


CONSTRUCTION CLASS Value (thousands of dolla rs) 
ALL PERMITS ----------63,263 314,679 302,242 + 4 

New construction ---------------55,837 279,140 268,344 + 4 Residential ----------------39,427 189,433 178,235 + 6 ------------+
Housekeeping 38,577 185,900 172,783 8 Single family ----------36,806 176,233 164,764 7
+ 

Mult iple family -------1,771 9,667 8,019 + 21 Nonhousekeeping 850 3,533 5,452 -35 Nonresidential ------------16,410 89,707 90,109 x Additions, alterations, and repairs ------··--····-·--7,426 35,539 33,898 5
+ 

CITY-SIZE GROUP (1940) ALL PERMITS ------63,263 314,679 302,242 4
+ 

Over 100,000 ----------------------28,989 147,867 137,203 + 8 50,000 to 100,000 ---···-····------11,923 55,755 61,361 9 25,000 to 50,000 --------·-----------4,568 30,861 25,645 + 18 Under 25,000 ----··-·--·· ----·--17,783 80,696 78,083 3
+ 
• Preliminary. 
xChange is less than one-half of one percent. 
Federal contracts are not included. 

VALUE OF CONSTRUCTION CONTRACTS AWARDED 
Sour ce : Dodge Statistical Research Service 

J anuary-May  
Type of const ·uct lon  May 1954  1953  Percent chanire  


Value (thousands of dollars) NEW CONSTRUCTION. ___ 112,355 505,148 473,157 
+ 7 

NEW  BUILDINGS --­ 84,333  897,694  380,156  + 6  
Residential  ---------·­-­ 52,766  244,994  230,157  + 6  
Nonresident ial -----·· -----­ 31,567  152,700  150,000  + 2  
P UBLIC WORKS AND  
UTILITIES  ----.---------­ 28,022  107,454  93,000  + 16  

indicated as one of the mainsprings of the 1954 strength in housing. 
Most building categories drop. Only nine of the 23 types of construction for which building permits are tabu­lated showed increases from April to May. Dollarwise, the miscellaneous nonresidential building classification showed the largest increase, $1,292,000 or 298%. Other increases in order of dollar magnitude were: additions, alterations, and repairs to nonresidential and nonhousekeeping resi­dential buildings ( +31% ) and construction of miscellan­eous nonhousekeeping residential buildings ( +415%), commercial garages ( + 190%), amusement buildings (+273%), tourist courts (+106%), churches (+7%), institutional buildings (+26%), and private garages (+9%). Few decreases were substantial with the notable exceptions of office buildings (-63% ) , public works and utilities (-60%), apartment buildings (-36%), educa­tional buildings (-19%), and stores and other mercantile buildings (-15%). Other decreases ranged from -9% to -3%, not far from the normal seasonal decline between April and May. 
Permit values in Texas cities. Changes from April to May in value of building permits issued in the five largest Texas cities were: Houston (+3%), Dallas (-15%), San Antonio (-21%), Fort Worth (-3%), and Austin (-23%). 
Alpine had the biggest relative increase from April to May ( + 1,573%), followed by McAllen (+952%), Gladewater (+517%), Marlin (+426%), and Llano (+400%). 
The city leading the state in per capita value of building permits issued during May was Irving with $759.63 per person. Other top cities: Andrews ($103.22) , Grand Prairie ( $84.28), Odessa ( $80.28), and Trinity ( $72.05) . Average municioal per capita building in the state during May was $15.45, compared to $16.47 in April. 
Texas building materials down slightly. Sales of Texas lumber, building materials, and hardware slid 3% from April to May in sharp contrast to an expected seasonal rise of 3% between these two months. This drop brought the total for January-May 1954 about 7% below that of the same period last year. Even with the declines experi­enced in the first five months of this year, however, the May, 1954 level was equal to the level of May last year. 
Shipments of portland cement from Texas mills in April slipped 1 % below March, somewhat less of a drop than the expected seasonal decline of 4%. Shioments in April of this year were at a level 4% above April 1953. 
R ICHARD c. HENSHAW, JR. 
RETAIL TRADE 

May sales below April level. The stimulating u~tu~n of sales in April was followed by a less-than-seasonal rise m May. However, May sales, after seasonal adjustment, fell little short of April, which had been the best month since July 1953. It is widely believed that the bottom of the cur­rent recession was reached in March and that stabilized or slowly increasing sales can be expected in months ahead. 
Retail Sales in Texas 
Index • Adjusted for seasonal variation •1947·1949 • JOO 
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With adverse weather conditions in various parts of the country, widespread special promotions during May failed to offset the shrinkage of sales to a level below that ex­pected. Outlying shopping centers and suburban towns ap­parently made better sales gains than city-central stores. Medium-and higher-priced lines of women's wear sold well, although below seasonal expectations. Sales of wom­en's dresses remained high throughout the weeks following Easter. Clearance sales increased markedly in early June. Volume in men's wear in May remained sluggish, except for work clothing, although summer apparel became more active in early June. Children's wear maintained a large volume in May but declined noticeably in June. Food sales were consistently above 1953 levels, with supermarkets re­porting better response than small retailers. Volume in household goods improved over recent months but still hung below last year. Sales of major household appliances were low, even with sales through discount houses. And television sales were spotty. But furniture and hardware 
ESTIMATES OF TOTAL RETAIL SALES 
Sales  P ercent change  
( mila of dols )  
May 1954  May 1954 Jan-May 1954  
Type of  May Jan-May  from  from from  
store  1954 1954  May 1953  Apr 1954 Jan-May 1953  

TOTAL ---------800.5 3,807.7 -8 

Durable goods ·-··-·· 303.1 1,395.9 3 + 4 -10 
Nondurable goods__ 497.4 2,411.8 8 3 -7 

gained volume, especially for outdoor equipment. Air­conditioning units gained steadily in demand. Automobile sales slipped considerably below last year, with used cars selling well ahead of new ones. Large trade-in allowances and discounts for cash were widely reported. Many mer­chants are giving a smaller article "free" with a purchase. Groups are promoting to avoid the usual "summer slump." 
Buying still cautious. Retailers buying apparel in the wholesale markets appeared to be more fearful of over­hanging inventories than of shortages which might result 
TEXAS BUSINESS REVIEW 
from delayed deliveries. Reports of consumer dissatisfac­tion due to out-of-stock conditions in lines of merchandise regularly carried have been widespread. Nevertheless, nu­merous buyers reportedly intend to handle inventory com­mitments on materially reduced buying budgets for fall and winter purchasing, especially for men's wear. Buying of women's and children's fall apparel began early this season, but orders continued to be small and exploratory. Some manufacturers of better dresses arranged for showings of their fall styles several weeks earlier than customary, being anxious to test customer reception of their offerings. Orders for men's wear remained low. Food ordering was well above 1953 but slowed at mid-June. Purchasing of house­hold goods strengthened but remained selective and well below last year's levels. Buying, on the whole, remained cautious but optimistic. 
Inventory shrinkage continuing. In eight months, manufacturers' stocks were generally reduced about 2.9%; wholesalers' inventories, 2.2%; retailers' goods, 2.0%. Retail stocks were cut in building materials, furniture, and appliances but were increased in clothing, food, and auto­mobiles. However, stocks of used cars fell below 1953 levels. Most retailers are displaying a tendency to restrict their stocks further. Some observers question whether stocks have not already been cut too low if the expected upturn in consumers' buying materializes during the latter half of 1954. 
Credit and income prospects. During January-April 1954, total consumer debt was reduced by $900 million. During April consumers' use of ordinary charge accounts 
CREDIT RAT IOS IN DEPARTMENT AND APPAREL STORES 
Credit  Collection  
Number  ratioe•  ratioet  
of  
Classification  r epor ting stores  May 1954  May 1953  May 1954  May 1953  

ALL STORES -------------------·-····­73  64.4  65.8  43 .3  43.1  
BY CITIES  
Austin ----········------------··---·--·-······· 4  60.3  59.4  50.6  54.2  
Cleburne ------­---------·····-···­------­3  37.9  36.5  46.1  44.2  
Corpus Christi ····­-····-········-­-··-····  59.2  59.8  40.9  37.7  
Dallas -­--------··············-·······-·····---­9  68.9  73.8  46.3  45.7  
E l Paso -····-····-------. ---··­·-·········--­3  59.2  58.9  32.1  34.1  
Fort Worth ···-·--·······--··········-------­ 64.0  63.4  36.0  38.5  
Galveston --·--··········----··············-···­5  59.9  59.1  50.5  49.0  
Houston ---···--·········--·----­----------­7  69.2  67.9  44.9  44.0  
San Antonio -­--·-----·····-·····-·····-···· 5  62.3  62 .6  46.2  44.6  
Waco .. --------------­-·····--· ..·-----­--­----­- 60.7  58.2  57.0  50.8  
Others ---··-·-----·-·-··-··-··-··-·-····----·--·­27  55.2  56.3  43 .6  42.6  
BY T YPE OF ST ORE  
Depar tment stores (over $1  
million) ------------------­22  66.S  68.3  42.1  42.3  
Department stores (under $1  
m illion) ·----------·············-·····---­20  42.3  43.3  50.2  43.8  
Dry goods and apparel stores ·-­ 70.9  70.3  57.2  54.3  
Women's specialty shops ----------· 17  58.4  57.7  45.0  43.4  
Men's clothing stores ··--···-······· 8  65 .2  64.6  54.4  54.0  
BY V OLU ME OF NET SAL E S  (1958 )  
Over $3,000,000 ----------·-··-········ 21  66.6  68. 2  42.3  42.5  
$1,500,000 to $3,000,000 ··-------·-· 5  55.6  56.3  52.4  45.1  
$500,000 to $1,500,00 ·····-----·······­19  54.5  55.1  51.4  50.0  
$250,000 to $500,000 ----·-----········ 12  43.9  42.7  51.8  44.1  
Less than $250,000 ··--·--··-­--.---­-­16  41.8  43.0  45.7  47.1  

• Credit sales as a percent of net sales. 
tCollections during the month as a percent of accounts unpaid ·on the first of t he month. 

RETAIL SALES TRENDS 

Source: Bureau of Business Research In cooperation with the Bureau of the Census, U.S. Department of Commerce 
Percent change  
Number of  
reporting  May 1954  May 1954 J an-May 1954  
establish- from  from  from  
Groups  ments  May 1953  Apr 1954 Jan-May 1953  


KIND OF BUSINESS  
DURABLE GOODS  
Automotive stores ···-----­---­ 322  - 1  + 6  -13  
Furniture and household  
appliance stores -----------­ 157  - 13  + 11  -13  
Lumber, building material,  
and hardware stores --­----­ 355  x  - 3  7  
NONDURABLE GOODS  
Apparel stores -----­----------­Drug stores -----­-------­-----­Eating and drinking places  247 172 145  +  5 1 7  -13 x + 4  2 6  
Filling stations ---------­--------­Florists -------------­-----------­ 991 37  +  +  1 2  + 4 5  
Food stores -------­--------------­ 349  3  
General merchandise stores  230  4  2  
Jewelry stores --------------­---­Liquor stores ----­-----------­ 40 23  + 3 -4  + 28 + 2  -11 -5  
Office, store, and school  
supply dealers -­----------­-----­ 37  7  x  -10  
CITY-SIZE CLASS (1950 )  
Over 250,000 ------­---·----------­1,389 100,000 to 250,000 -------------­177  +  5 l  2 5  -- 4 5  
50,000 to 100,000 ---------­-----­ 267  - 10  1  -11  
2,500 to 50,000 -----------------·-­1,161  + l  + 2  3  
Under  2,500  ------------------------­ 218  +  8  + 2  + 2  

xChange is Iese than one-half of one percent. 

increased about $180 million. Installment accounts in­creased only $9 million in contrast with a rise of $375 mil­lion during the preceding April. However, consumer in­stallment debt as of April 30 still totalled 6% higher than on that date in 1953. A tendency is reported for lenders to he more selective and exacting this year than last spring. Yet personal income has decreased only 1.7%, and income after taxes less than 0.5%. Farmers' income from crops marketed slipped 4% from 1953. 
Survey of Texas trade. Reporting by cities, 329 Texas department and apparel stores averaged decreases of 9% from April, 5% from last May, and 4% from January-May 1953. Of the 34 cities tabulated, four bettered April, nine topped last May, and nine were ahead in the January­May comparison. The largest gains over May 1953 were in El Paso (+18%), Texas City (+17%), San Angelo (+11%), Brownwood (+7%), Big Spring and Sherman (each +5%). Sales were ahead of January­May 1953 in Vernon ( +20%) and El Paso ( + 10%), and also by 1% to 4% in Brownwood, Lampasas, Texas City, Sherman, Wichita Falls, Greenville, and Port Arthur. 
Of 38 cities reporting enough retailers of various types to be listed individually, 15 topped April, 15 bettered last May, and seven were ahead in the January-May compari­son. The largest gains over April were in Brownsville (+24%), Lampasas (+22%), Greenville (+19%), Temple (+18%), and Jasper (+17%). Best showings over last May were at Temple (+27%), Greenville (+15%), San Angelo (+12%), Jasper (+11%), Port Arthur (+6%) and Dallas (+5%). Comparing the January-May periods, increases over 1953 were reported from Greenville (+14%), Gainesville and Jasper (each 
+ 11% ) , Commerce ( + 10%), Kirbyville ( +4%), and San Angelo ( +3%). 
Secondary trade indicators. Advertising linage in 26 Texas newspapers averaged 2% under April and 7% below last May. Of the 26 papers, 10 bettered April hut only 6 topped May 1953. Postal receipts for 123 Texas cities slipped below April by 6% but topped last May by 5%. Of the 123 cities, 47 topped April and 86 bettered May 1953. 
A. HAMILTON CHUTE 
POSTAL RECEIPTS 
Percent chaniie  
City  May 1954  Apr 1954  May 1953  May 1954 May 1954 from from May 1953 Apr 1954  

TOTAL• ---------$5,691,084 $6,028,993 $5,446,683 + 4 -6 

Alice -­------­-----­ 10,927  6,198  9,324  + 17  + 76  
Bastrop -------------­ 2,053  1,680  1,792  + 15  + 22  
Bay City ---------------­ 7,740  7,636  6,932  + 12  + l  
Belton ---------­-----­ 4,914  5,987  3,818  + 29  -17  
Brady --------­---­---­ 3,792  4,144  3,973  -5  -9  
Brownfield ------­ 6,110  5,822  4,711  +so  + 15  
Cameron ------­----­ 7,951  9,694  6,682  + 19  -18  
Cisco ----------­ 3,879  3,263  3,856  + 1  + 19  
Cleburne ----------­ 10,620  10,418  9,861  + 8  + 2  
Coleman ---­-----­--­ 5,188  4,975  4,745  + 9  + 4  
Crystal City -----­ 2,160  2,498  2,169  x  -14  
Cuero -------­-­ 3,584  5,441  3,607  1  -34  
El Campo ---­-----­ 7,270  7,155  6,738  + 8  + 2  
Gainesville -----~----­ 9,893  10,242  8,128  + 22  -3  
Gatesville ------­--­ 3,313  2,942  2,828  + 17  + 13  
Giddings ---­------­ 1,858  2,097  2,756  -33  -11  
Gilmer ---------­-­----­ 4,542  2,629  3,512  + 29  + 73  
Graham ---------------­ 5,256  5,314  4,283  + 23  -1  
Granbury ----------­---­ 2,118  2,212  1,451  + 46  -4  
Grand Prairie ---­----­ 12,610  15,487  12,181  + 4  -19  
Hillsboro ---------­ 5,033  4,976  4,387  + 15  + 1  
Huntsville -­-------­ 5,971  8,638  7,307  -18  -31  
Jacksonville --------­ 11,392  10,028  10,507  + 8  + 14  
Kenedy -------------­ 3,190  3,542  2,983  + 7  -10  
Kerrville ---­-----­---­ 7,872  7,645  7,000  + 12  + 3  
Kingsville ------------­ 9,547  10,044  9,524  x  -5  
Kirbyville ----­­ 1,994  2,124  -6  
La Grange -------­ 3,441  3,878  4,638  -26  -11  
Littlefield ----------­ 5,051  5,269  3,792  + 33  4  
Luling -------­---­ 2,792  2,922  2,431  + 15  -4  
McCamey ----------­ 2,408  2,448  2,588  -7  2  
Mission ---------------------­ 5,823  6,063  4,844  + 20  4  
Pampa ---­-----­---­---­-­ 12,863  14,494  13,340  -4  -11  
Pasadena ----------------­ 15,828  18,943  13,565  + 17  -16  
Pecos ------------------------­ 7,115  7,764  7,159  -1  -8  
Pharr ----------------------­ 3,926  3,629  3,502  + 12  + 8  
Pittsburg --------------­ 2,450  3,624  2,688  -9  -32  
Sulphur Springs ---­ 6,154  5,696  5,234  + 18  + 8  
Taft --­---------------­-----­ 2,062  2,083  1,996  + 3  -l  
Terrell --------------­-----­ 5,225  5,489  4,664  + 12  -5  
Uvalde --------------­---­ 6,221  5,628  5,007  + 24  -11  
Vernon --------------­- 8,284  8,182  + l  
Weatherford ---­------­ 6,965  7,055  6,724  -l  4  
Yoakum ------------­ 9,580  8,940  8,500  + 13  + 7  

*The total includes l"eCeipts for cities which are listed Individually under "Local Business Conditions." 
xChange is less than one-half of one percent. 
INDUSTRIAL PRODUCTION 

Authority of the Federal Power Commission was sig­nificantly broadened early last month to include control of natural gas produced for interstate shipment. In a long awaited decision, the U. S. Supreme Court ruled that the FPC was specifically responsible for price control of gas produced and gathered by the Phillips Petroleum Com· pany and sold to pipeline companies for shipment out of the state. Details of the opinion expressed by the five-to­three majority of the court, however, were not immedi­ately clear. 
WELL COMP LETIONS 
Source: The Oil and Gaa Jou"'4l 
May 1954• January-May Region Oil Gas Dry Total 1954 1953 
TEXAS 814 56 550 1,420 7,267 6,936 
North Central --­ 100  7  74  181  2,307  2,526  
West -------­ 95  15  72  182  1,459  1,522  
Panhandle -····--·  33  10  41  84  407  339  
Eastern  ----­ 288  3  253  544  949  331  
Gulf Coast -----··  247  9  97  353  1,273  l,039  
Southwest  ----·  51  12  13  76  872  1,179  

•For four weeks ending May 29, 1954. 
Texas officials, strongly opposed to extension of federal control in Texas gas fields, feared that more than 2,300 independent gas producers would be affected by the de­cision; there are at least that many who sell gas to inter­state transmission lines. But the court's ruling stated only that Phillips' production of gas for interstate distribution constituted a phase of interstate commerce. Federal gas legislation has previously exempted from federal control the production and gathering of gas, and this law may ~on­tinue to prevail in cases of producers whose operations are more clearly intrastate than those of Phillips. 
The suggestion that the result of the Phillips case may be applicable to all gas producers appeared in the dis­senting opinion of Supreme Court Justice Clark, who stated that the ruling of the court would extend federal control to "every gas operator, from the smallest pro­ducer to the largest pipeline." 
The majority of the court declared that market rates charged by Phillips have a "direct and substantial effect on the price paid by ultimate consumers" and that "pro­tection of consumers against exploitation ... was the pri­mary aim of the natural gas act." The decision was di-
Industrial Electric Power Use i.n Texas 
Index • Adjustedfor seasonal variation • 1947-1949 • 100 



PETROLEUM AND GAS ACTIVITY 

Source: State Comptroller of Public Accounts and Oil and Gu 
Dlvl1ion, Railroad Commilalon of Texaa 

Percent change  
P roduct  May 1964  Apr 1954  May 1963  May 1954 from May 1953  May 1964 from Apr 1954  

CARBON BLACK  
PRODUCE D  (value  
in t hous of dols) _  1,614  1,805  2,920  -45  -11  
CRUDE OIL  
Value (thous of dols ) ___  237,803  233,727  218,907  + 11  + 2  
P roduction (thous  
of bbls ) --···-·--· Runs to stills (thous of  88,843  81,994  82,745  + 1  + 2  
bbls) --------··· NATURAL AND  60,658  59,409  62,291  - 8  + 2  
CASINGH EAD GAS  
P RODUCE'D  (value  
in thous of dols) _  42,403  30,520  82,903  + 29  + 39  
SULFUR RE'COVERE D  
(long tons) -----­ 101  1,824  2  +4900  -92  

xChange is less than one-half of one percent 
rected toward closing what the court termed a "gap" in federal regulation of gas, but the breadth of the gap was not described. Nevertheless, gas buyers in the Middle West saw the decision as a victory. 
Forces against federal control had been led by the Phillips company; the states of Texas, Oklahoma, and New Mexico; and even the Federal Power Commission, which had previously ruled that its control did not extend over the disputed area. On the pro-control side were sev­eral midwestern states and cities--Wisconsin and Michi· gan; Detroit, Milwaukee, and Kansas City, Missouri­that use large volumes of Texas natural gas and believe its price should be stabilized by federal authority. 
Gas-producing states of the Southwest contend that far from exploiting northern consumers, gas producers are providing them with a premium fuel at prices that are commonly lower than those charged for fuel oil and coal, even in coal-producing areas. In Detroit, for example, coal heating for homes cost 32% more in 1950 than gas heat­ing, while fuel oil cost about 70% more, in terms of heat generated. It is believed that the situation has not changed radically since then. 
Resource economists have long complained that a mar­ket structure is unstable in which the premium commodity is sold at a lower price than less desirable competitive goods. They hold that this is particularly true in the case of natural gas, for the nation's reserves of gas are appar· 
The industrial power use index (adjusted) dipped slightly in May (212), after reaching a spring high 1n April (214). Yet the U.S. industrial production index moved upward in May, and Texas industry appeared set for high-level sum­mer production, broken perhaps by vacation­season slumps in industrial man-hours worked. 

JULY 1954 
REFINERY ST OCJ(S Source: The Oil and Gu Jounial 
Percent chan1re Stocka (thousands of barrela) -----­May 1954 May 1954 
Areaand May Apr May from from product 1954 1954 1958 May 1953 Apr 1954 

UNITED STATES  
Gasoline ----­172,855  177,058  152,435  + 13  -2  
Distillate ----71,224 Residual -------­46,433 Kerosene ----­23,416  61 ,405 43,583 19,680  70,842 41,425 23,527  + 1 + 12 -1  + 16 + 7 + 19  
TEXAS  
Gasoline -------­ 30,016  30,365  27,304  + 10  - 1  
Distillate  ------------­ 8,290  7,627  11,020  -25  + 9  
Residual ----------­Kerosene ------­--­ 5,538 3,534  5,434 2,774  7,252 8,752  -24 -6  + 2 + 27  

Figures shown a re for the Saturday nearest the end of the month. 

ently much more limited than the widespread deposits of coal. 
Some federal officials also predicted that long-range application of federal production control might ultimate­ly vitiate the apparent object of the court decision. If FPC control should lead to an interstate price or distribution structure considered unfavorable by Texas producers, they might divert a larger proportion of their output to Texas consumers, thus pinching the supply available to gas-hungry northern cities. 
Meanwhile, the Texas attorney general's office an­nounced that the Supreme Court will be asked to recon­sider the Phillips case and that if a rehearing is denied, Congress will be urged to restore gas production to state control through special legislation. 
As June ended, K. S. Adams, chairman of Phillips' board of directors, warned that if the court ruling is not revoked or bypassed, Phillips may end all its interstate shipments of gas. 
For the time being, however, some southwestern gas is destined to cross many state lines. The FPC has author· ized a Houston firm, Pacific Northwest Pipeline Cor­poration, to deliver natural gas from the San Juan basin of New Mexico and Colorado to points as far distant as Bellingham, Washington. 
Increasing demand for natural gas was indicated at the annual stockholders' meeting of Humble Oil and Refin· ing Company. Hines H. Baker, president of the company, announced that Humble's natural gas sales had risen 18% during the last year. The increasing market for gas is gradually raising its price, Mr. Baker said, "toward a level more nearly commensurate with the producer's real value." 

As the distribution of Texas natural gas spreads over most of the United States, the problems confronting gas economists and legislators knit into one of the most tight· ly complex situations affecting the well-being of state and nation. The three basic demands placed upon Texas gas resources are contradictory at many points. Gas produc· ers and marketers want, naturally enough, to maintain maximum profits within the bounds of reasonable conser· vation measures. But on the other hand, gas consumers, 
ELECTRIC POWER CONSUMPTION 
P ercent chan1re  
Use  Consumption (t hous kw-hrs ) May Ap r May 1954 1954 1953  May 1954 f rom May 1953  May 1954 f rom Apr 1954  

TOTAL ------------1,052,284 1,049,633 1,003,285 + 5 + 6 

Commercial -----·-------201,659 190,636 181,094 + 11 + 6 
Industrial 511,289 501,039 464,234 + 10 2

------------·-·· + 

Residential -----------165,834 163,459 151,927 -9 Other 173,502 194,499 206,000 -16
----------------------11 

Prepared from reports of nine electric power companies to the Bureau of Business Research. 
wherever they may be, are in favor of keeping the price at the lowest possible level. 
,These consumers, however, fall into two conspicuously variant groups: industrial gas-users concentrated in Texas and other producing states, who use tremendous volumes of gas but must buy it at a very low rate ; and residential gas-users, who are concentrated in the populous and chilly northeastern states. These latter users burn small amounts of gas individually and so must pay much higher rates, commonly more than three times as much per volume as industries. It is argued that by discouraging interstate shipment, Texans can offer their gas as a locational ad­vantage to industries that may build gas-burning plants in Texas and boost the economy of the state. This argument is based upon the tenets of states' rights. The opposing group see gas as a national resource rather than as the special advantage of a particular region. They favor the broad, nation-wide use of highly localized resources, a de· velopment from which they would not fail to benefit. 
ROBERT H. RYAN 
The index of crude oil runs, basic ba rometer of Texas refining activity, slipped from 135 in April to 130 in May, but was still above the 1953 aver­age of 128. In the nation as a whole, crude oil was processed at a slightly higher rate by mid-June, and gasoline stocks shrank slightly as the summer tourist season began. 
Crude Oil Runs to Stills in Texas 
Index • Adjusted for seasonal varialion • 1947-1949 • 100 


!GI 
!GO 

"' 
II'\. 
A
A" 
f -­
f-
If 
y 
'" 
J
_,v-' I \I"'-f-./ 
y­
'\.J'../" 
..

.. 
1'3! IHI IMI HU 1'43 1944 1145 ms 1141 IHI 1141 1150 1151 115% 115J lt~ 
AGRICULTURE 
Late rains still inadequate. Beneficial results 0£ spring rains to Texas farms and ranchers became evident during June. But by the end of the month drouth was once more threatening large areas. Conditions were par­ticularly good in the northern half 0£ the state, partially as a result 0£ scattered rains that £ell during June. There crops and pastures made good to excellent progress. In the southern half of Texas, however, crops and grass be­gan to deteriorate as soil moisture was rapidly depleted by dry winds and a blazing summer sun. Over most of this area general rains will be needed if a good harvest is to be made. 
Wheat harvest good. Harvest of a good Texas wheat crop was well under way by late June. Throughout the wheat lands conditions contrasted sharply with the dismal prospects of only a few months earlier when drouthy con­ditions had prevailed. The almost-too-late rains that £ell in April and May proved to be more beneficial than had been hoped for. To say the least, recovery of the once· weakened stands of wheat has been phenomenal. 
Illustrative of the extent of this recovery is the June 1 production estimate of the U. S. Department of Agricul­ture. At that time prospects for th.e state's 1954 harvest stood at 31,224,000 bushels, almost a 50% increase over the 21,290,000 bushels forecast on April 1. This year's anticipated production compares favorably with the 23,­035,000 bushels harvested in 1953 but is well under the 1943-52 average of 57,221,000 bushels. 
It should be noted, however, that this year's crop will come from only 2,602,000 planted acres, whereas in 1953 2,718,000 acres were planted, and over the preceding 10­year period (1943-52) an average of 4,628,000 acres were planted. This year's yield should reach 12 bushels to the acre as compared with the 8.5 bushels-an-acre yield for 1953 and the 10-year average of 11.8 bushels. The overall favorable outlook was tempered a bit by the possi­bility that the final production figures would be reduced by the combined effects of hail, fungus, leaf rust, stem rust, and weed infestation. 
Improved wheat-storage facilities in operation. As had been foreseen for some time, the increased wheat 
INDEXES OF PRICES R E CEIVED BY F ARMERS 
(1909-14=100) 

Source : Bureau of Agricultural Economics, U. S. Department of 
Agricult ure 

Percent change  
Index  May 1954  Apr 1954  May 1953  May 1954 May 1954 from from May 1953 Apr 1954  
ALL FARM PRODUCTS ------­ 272  270  280  - 3  + 1  
ALL CRO PS ---·---······-·········  254  247  257  - 1  + 3  
Food grains  --------··-···-····-----.-­-­ 229  239  266  - 14  4  
Feed grains and hay --------------­ 197  197  206  - 4  0  
Potatoes a nd sweet potatoes -----­ 215  216  356  - 40  x  
Fruit ------------------------­ 83  83  147  - 44  0  
Commercial  vegetables  -----·-·····-­ 363  304  295  + 23  + 19  
Cotton  --------------------------­-·-·····  259  255  252  +  3  + 2  
Oil-bearing crops ----­-------------­---­ 260  255  307  - 15  + 2  
LIVESTOCK AND  
PRODUCTS  -·-··-·-···---­ 297  301  309  - 4  - 1  
Meat a nimaJs --------------------------­- 344  343  334  + 3  x  
Dairy products  ------------------------­- 226  239  254  - 11  -5  
P oultry and eggs -----------------------­ 202  203  258  - 22  x  
Wool -------------------­ 366  379  391  - 6  

xChange is less than one-half of one percent. 
TEXAS BUSINESS REVIEW 
FARM CASH INCOME 
January-May 
Percent Commodity 1953 chanire 
Value (thousands of dollara) 
TOTAL ----------------------551,801 532,767 + 4 
Cotton ----------­----------------­ 149,396  109.106  + 37  
Cotonseed ----­---···----------------­ 1,285  2,099  -39  
Wheat ----­----­---------------------­ 8,189  12,250  -83  
Oats ---------------------------------­ 2,076  1.108  +87  
Corn --­--------------------­-----­ 2,828  3,344  -16  
Grain  sorghum  -------------­ 11,674  7,991  + 46  
Flaxseed -------------------­ 3.141  2,880  + 9  
Peanuts -----------.-­--------------­ 2,711  1,262  +115  
Cattle  --------------------­------­ 116,012  114,775  + 1  
Calves  -----­--------------------­ 30,857  36.343  -15  
Hogs  -------------------------­ 37.654  35,852  + 6  
Sheep and Jambs -------------­ 14,084  11,112  + 27  
Wool  ----------------------------­ 5,825  7.131  -18  
Mohair  --------------------------­ 5,211  5,630  -17  
Poultry -----­----------------------­ 21 .141  24.848  -15  
E ggs  -------------------------------­ 33.840  39,131  -14  
Milk and milk products____  73.279  90,646  -19  
Fruit and vegetables -------­ 32.598  27,259  + 20  

Farm cash income as computed by the Bureau underatatea actual farm cash income by from 6 to 10%. This situation results from the fact that means of 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 all agricultural specialties of local Importance in scattered areas. This situation does not Impair the accuracy of the index shown on page 24. 
crop brought about storage problems. Existing facilities, already bulging at the seams, were simply inadequate. In an attempt to alleviate these conditions, the Commodity Credit Corporation placed in operation at Fort Worth a unique system of ground storage. 
This system, perfected after years of engineering re­search, consists of spilling the grain on the ground in a cone shaped mound, each mound containing about 1 .mil­lion bushels. A canvas covering provides protection from the elements. Chemicals are used to repel insects, and "hot spot" detectors are used to gauge the heat at various sta­tions within the cone. 
The merits of the new system lie primarily in its econ­omy, particularly when compared with the cost of con­structing permanent storage that might not be needed every year. Between 8 million and 20 million bushels of wheat will be stored at the Fort Worth operation alone. A similar operation is planned for Saint Joseph, Missouri. 
Cotton outlook encouraging. Cotton prospects con­tinued good over most of Texas as plants reacted favor­ably to spring rains and hot summer weather. By late June, however, some areas, particularly in the southern Blacklands and the nonirrigated acreage in South Texas, were in need of additional moisture. 
In the Rio Grande Valley harvest of a "very good" cot­ton crop got well under way during the month following the ginning of the first U. S. bale on May 30. For various reasons this year's harvest is expected to move slowly in comparison with those of past seasons. In the dryland parts of the Valley, cotton planting was late this year. Cooler-than-normal weather retarded boll maturing. Also, the subsoil has more moisture than usual. With the prospects of a longer harvest season, though, comes the probability of longer staples and a higher yield per acre. 
Increased cotton demand seen by expert. The op· timistic outlook of the Texas cotton farmer was extended 
JULY 1954 
well beyond the current year by a long-term forecast made by Lamar Fleming, Jr., well-known cotton author­ity and chairman of the hoard of Anderson, Clayton and Company. Mr. Fleming sees a steady increase in both do­mestic and foreign needs for American cotton as a result of population growth and a gradual elevation of stand­ards of living. Foreign production, Mr. Fleming believes, is not capable of growing enough to meet these expected increases in demand. Mr. Fleming backs his forecast with this logical reasoning: So far this year consumption abroad is running considerably higher than was predicted earlier; the year's exports are now expected to top 3.8 million bales. At this rate of gain, exports for 1955 and 1956 will probably increase still further-to about 5 mil­lion bales. Increased foreign consumption of U. S. cotton, coupled with larger domestic sales, Mr. Fleming contends, should reduce the national carryover to 5 million bales by 1956. This year's carryover is forecast at 9.5 million bales. The obvious effect of these predicted conditions would be to end the cotton surplus that has plagued the cotton industry in recent years. 
Adjustments in 1953 cotton acreage made. En­couraging news for West Texas farmers came by way of a dispatch from Secretary of Agriculture Benson. Mr. Benson announced that state and county acreage records for 1953 will be adjusted upward to compensate for acre­age not planted to cotton because of last year's drouth. During this year 2,016,717 cotton acres in 80 West Texas counties were not planted to cotton. Worried cotton farm­ers assumed that low 1953 records of cotton acreage would be used in determining quotas allotted under a possible future control program. 
Increase in vegetable production expected. The late-June outlook for the 1954 Texas vegetable crop also showed evidence of benefiting from the timely moisture. Reports of the U. S. Department of Agriculture point to a harvest of spring and early summer commercial vege­tables 22% greater than last year's and 32% above the 1950-53 average. Principal increases were measured for com, cucumbers, tomatoes, green peppers, and water­melons. The late-spring tomato crop was forecast at 3,­
CARJ.OAD SHIPMENTS OF LIVESTOCK* 
8•urce: Bureau of BueineM Research in cooperation with the Bur~au ot 
Aerlcultnral Economic•, U. S. Department of Agriculture 
P ercent chanee  
Classification  May 1954  Apr 1954  May 1953  May 1954 from May 1953  May 1954 from Apr 1954  

TOTAL --------4,401 6,909 4,468 -36 
Cattle  ------------­- 8,338  5,656  3,142  +  6  - 41  
Calves __.............. ·--·-·--·­ 420  368  433  3  +  14  
Hogs  ------------­-----------­- 9  6  5  + 80  +  50  
Sheep  --------------­---­ 652  879  888  - 27  - 26  
INTERSTATE .-....-­ 4,072  6,642  4,236  -4  - 39  
Cattle  ----------------­-- 3,087  5,452  2,954  +  5  - 43  
Calves ..--·---..........--.... ·­ 385  332  408  - 6  +  16  
Hogs  -----­-------------­ 2  -50  0  
Sheep  -----·-----­ 617  857  872  - 29  - 28  
INTRASTATE  ---·-­- 829  267  232  +  42  +  23  
Cattle  --­--­-------­ 251  204  188  +84  +  23  
Calves -....-----·-­-... -.......  35  36  25  + 40  - 3  
Hon --..--..·-·---·  8  5  s  + 170  +  60  
Sheep  -­-­- 35  22  16  +120  +  59  

•Ran-car baal1: cattle, 30 hee.d per car: calves, 60; hop, 80; and 1heep, HO. 
CARLOAD SHIPMENTS OF FRUIT AND VEGETABLES 
Source : Compiled from reports received from Bureau of Agricultural 
Economics, U.S. Department of Agriculture 

J anuary-May 
Percent 
Item 1954 1953 change 
TOTAL SHIPMENTS ......______.. 24,347 23,530 3
+ 
FRUIT _ .... -......... -.............. _____....___ 2,324 1,001 +130 
Cantaloupe ........................... -.....-............... 1,977 916 +115 
Grapefruit _ ............................... -.............. 95 43 +120 
Plums and prunes ....... -........................ -·-· 25 33 -24 
Watermelons -·-·----.. -........... _._ ............. 225 4 +5500 
Mixed citrus _ ................. -... -..... -..... 2 5 -60 
VEGETABLES .................................. 21,833 22,327 -2 
Beets _ ............. -.................... -.... -............. 58 139 -58 
Broccoli ......... -.... -..........___............ -...... 98 22 +350 
Cabbage ... -............. -..... -..... _ ____.......... -2,287 1,390 + 65 
Carrots -.. -........ -......___..____ .... _ .... _____....... 4,059 4,307 -6 
Cauliflower _ ............... -........... -............... _. 489 115 +320 
Corn -..--.-.............................. _ ....... --------480 395 + 22 
Lettuce ..·-·-.. ·-·----.................. -..... -.... -.. _ 1,885 1,311 + 44 
Onions -..·----....--.... -.... -................... 3,950 5,966 -34 
Potatoes and sweet potatoes ..---------------· 117 43 +110 
Spinach ........................................................ 648 1,009 -36 
Tomatoes -----·-.............................. _. 2,600 2,725 5 

Mixed vegetables ___................... _ .. _______..___ 5,164 4,905 5

+ OTHER -·-.. -................................ 190 202 -6 
611,000 bushels, 62% above last year and 21 % above average. The early-summer green pepper crop was ex­pected to increase 58% above the 1953 production figure to a total of 1,795,000 bushels. Most significant increase, however, was forecast for watermelons. A record 81,006,­000 melons were expected for the early-summer season­20% more than for 1953 and 23% above the average. 
Livestock condition favorable. Compared with a year ago the Texas livestock situation was favorable dur­ing June. In all but a few isolated areas livestock were in good condition. Stock water was adequate. Ranges were reported to be fair to excellent in most areas, al­though by the end of the month central, southern, and southeastern grasslands were showing the effects of dry weather. Supplemental feeding became necessary in South Texas. Panhandle grasslands, on the other hand, were as green as they have been in years. Marketings throughout the state were relatively heavy during the month, but they were well below the "drouth runs" of recent years. 
Agricultural price gain measured. Prices received by Texas farmers for their products rose slightly during May, with the average for the month about 1% higher than the April level. Compared with year-earlier levels, however, a 3% decrease was indicated. 
Increases in crop prices ( +3% ) accounted for the up­ward movement. Biggest gain in this group was recorded for commercial vegetables, up 19% from April levels. This gain and 2% increases for cotton and oil-bearing products were more than enough to offset a significant 4% drop in food-grains prices. This May's crop prices were 1 % below comparable 1953 levels. 
Partially offsetting the gains in crop prices, prices paid for livestock and products were down 1 % from April on the average. Although prices paid for meat animals and poultry and eggs changed little during the period, signifi­cant drops were recorded for dairy products (-5%) and wool (-3%). Compared with the same month in 1953, May livestock and product prices were down 4%. 
RAYMOND v. LESIKAR 

12 	TEXAS BUSINESS REVIEW 
FEDERAL INTERNAL REVENUE COLLECTIONS
FINANCE 
·Source: Internal Revenue Service, U.S. Treaanl'J' Department

Reserve requirements cut. Funds available for .in· vestment continue to exceed current demand. Acceptmg July 1-May 81 this situation some of the major finance companies have 
Percent

recently low~red interest rates they pay on .th.eir short· Source and area 1963-64 1962-63 change term commercial paper to ll/s%-11;2%. This is the sev· 
TEXAS --------·--·--·----· $1,930,496,712 $2,019,609,083 -4 

enth successive reduction made this year by the finance 
979,281,336 1,103,416,053 -11Income ---------------------·----­

companies. 
Employment --·-·-···----­21,379,126 20,204,561 + 6 Leading potential has been further augmented this Withholding ·--·-·-·····-·----757,573,808 723,856,591 + 6 
month by the reduction in the reserve requirements for Other -----··----·····--····-----172,262,442 172,131,878 x 
FIRST DISTRICT ···-1,048,763,871 1,096,869,186 -4

member banks in the Federal Reserve System. By August 
Income --541,807,015 607,032,128 -11 
reserve requirements on demand deposits for New York 
Employment ·-----·····---··-·· 4,748,418 4,660,717 + 2 and Chicago banks will be lowered to 20%: from the.Pres· Withholding ·--------··--··-·-··---403,983,714 386,616,697 + 4 
ent 22%; for reserve city banks the reqmrem~nt will be Other ----·-······--···-------98,214,724 98,559,744 x 
SECOND DISTRICT_. 881,742,841 922,739,897 -4

18%; and for country banks the requirement will be 12%. 
Income --------------------------437,474,321 496,383,926 -12
Time deposit requirements for all banks have ~een fixed 
Employment -·-·------------­16,630,708 16,543,844 + at 5% in place of the existing 6%. By releasmg fu~ds Withholding ------··--·-····---· 353,690,094 837,239,994 
+ hitherto locked up in reserves, the lo'"'.er resen:e req~nr~· Other --·-·-----------·-----··-··· 74,047,718 73,572,134 + 1 ments make possible a total ext~a credit expan~1?n w1th1.n xChange is Jess than one-half of one percent. the banking system of approximately $7.5. bilhon. T~1s policy, supplementing earlier moves lowe.rmg the red1s· 
Eleventh District hanking. Total loans by weekly re·count rate, may seem supererogatory at a time when loan­porting member banks during May increased fractionallyable funds are apparently so abundant. However, the Fed· from the April level but were 8% higher than during Mayeral Reserve is assuming that loan demand will increase last year, as the accompanying table shows. In reducingmaterially in the near future, and the B?ard is anxious reserve requirements, the Reserve Board indicated thatnot to inhibit business recovery by a possible shortage of the action was taken partly to provide for the expectedcredit. How far the action of the Federal Reserve will seasonal increases in loan activity that usually precedeaffect general credit demand at the present time is unc~r· crop marketings and inventory buying for year-end retailtain. It is possible, though, that borrower pressure will trade. The trend of loan activity in the Eleventh Districtforce further cuts in the prime commercial rate, in view during the next few months should provide some valuableof the recent Federal Reserve moves towards easier clues to business expectations in the Southwest, with re· money. 

gard to both the immediate and the longer term future. Holdings of all types of U. S. Government securities
CHANGES IN CONDITION OF WEEKLY-REPORTING MEMBER 

during May showed strong increases over last year's
BANKS IN THE DALLAS DISTRICT 

levels; the shorter term items continue to occupy a rela· 
Source: Board of Governon of the Federal Reeerve S;yatem 

tively less important position in portfolios than last year. Demand deposits were slightly higher during May than 
Percent change• 

during May, 1953 (+3%), and time deposits continue 
May 1964 May 1964 May 1963 

at relatively higher levels.
from from from 
Item May 1963 Apr 1964 Apr 1963 

LOANS MADE BY SAVINGS AND LOAN ASSOCIATIONS

ASSETS Loans and investments________________ + 11 1 -1
+ 

Source: Fed&ral Home Loan Bank of Little Rock Loans ----------------------+ 8 x -1 Total U.S. Government securities + 13 x -1 
-11 	Percent change
Treasury bills -----------------------+ 46 + 16 
Treasury certificates of 


May 1954 May 1964 indebtedness ---·----------·------+ 12 -28 -16 May Apr May from from 
Type 1954 1953

Treasury notes -----·----------00 + 12 + 46 6 1954 May 1963 Apr 1954 Bonds -----------------------------· + 10 x
x 
Number

Other securities ----------····-··· + 16 + 8 + 2 Reserve with Federal Reserve ALL LOANS ·-·· -------3,817 3,784 3,436 + 11 + 1 
Banks ·----··--··--·-·---------..-------+ 6 + 4 + 1 Cash in vaults -----·------·-·-·-·--+ 2 -14 -11 
Construction 798 748 628 7
--·------------
-----	+ 27 +

Balances with domestic banks .... + 6 -7 -1 
Purchase -------------------------1,222 1,127 1,132 + 8 + 8 LIABILITIES Refinancing -·····----·------···----366 310 313 + 17 + 18 Reconditioning 482
Total deposits (except interbank) + 9 x x 	------·--·-------438 426 + 13 + 10 
Other
Demand deposits (adjusted) ___ + 3 x x ------·-·------···----··------·--949 1,161 937 + 1 -18 Time deposits -·----··--·--+ 23 + 2 + 3 
Value (thousands of dollars)

U.S. Government deposits ---··-+200 3 -38 Interbank deposits ------·-·-··-----+ 18 -6 ALL LOANS -·---····-21,036 20,127 18,304 + 16 + 5 Domestic banks --·--···--··--·-----------+ 18 x -6 
Foreign 	banks --·------·--------+ 26 -28 -11 Construction ·----··--·-·----····-6,643 5,970 6,320 + 6 -5 CAPITAL ACCOUNTS ------+ 7 x + 3 Purchase -·-------·-----··----···---7,721 6,918 6,813 + 13 + 12 
Refinancing ·---·-------·--·--·-2,327 1,688 1,661 + 40 + 38 
*Percentage changes are based on the Wednesday nearest the end of the Reconditioning 1,108 1,203 14
---·-····--------· 968 -9 + 

month. 	Other 
4,583 + 8 :xChanire fa lees than one-half of one percent. 
---·----------·---------4,237 3,307 28 ­JULY 1954 

State revenues show increase. At the end of the third quarter of the 1953-54 fiscal year, state revenue re­ceipts were 13% above cumulated 1952-53 receipts for the same period. Chiefly reflecting the enormous growth in revenues accruing from offshore oil and gas leases, the increase nevertheless resulted partly from larger collections from other sources, notably from oil and gas production taxes and royalties. In addition, federal grants to the state for public welfare purposes have amounted this year to al­most $88 million, an increase of 18 % over last year's $74.5 million. 
REVENUE RECEIPTS OF STATE COMPTROLLER 
Source: State Comptroller of Public Accounta 
September 1-May 31 
Percent Source 1952-68 change 
TOTAL ---------------------------------$616,196,179 $547,325,042 + 13 
Gross telephone r eceipts -----------------3,529,918 8,193,440 + 7 
Natural and casinghead gas 
production truces ------------19,007,430 15,873,664 + 20 
Crude oil production truces ----96,075,653 93,125,116 + 3 
Insurance companies occupation taxes 18,477,259 18,517,871 x 
Net motor fuel taxes -------------------83,723,933 81,650,852 + 3 
Cigarette tax a nd licenses -------------25,390,949 26,303,576 
Alcoholic beverage taxes and licenses 14,250,676 14,627,478 
Automobile and other sales taxes______ 13,778,462 14,476,994 5 
Franchise truces ----------------14,958,270 13,756,565 + 9 
Mineral leases, rentals, and bonuses.. 53,942,107 11,918,934 +350 
Oil and gas royalties ---------·-·--16,568,332 14,056,785 + 25 
Motor vehicles licenses, permits, 
and miscellaneous --------·------------38,464,920 35,210,027 + 9 
Federal aid-public welfare -------·----87,892,822 74,485,424 + 18 
Unemployment compensation taxes ___ 13,010,678 15,238,745 -15 
All other receipts --------------116,224,770 114,889,571 + 1 
xChange is less than one-half of one percent. 
Federal revenue collections down. With two months 
remaining in the 1953-54 fiscal year, federal internal rev­
enue collections in Texas were 4% below the July I-May 
31 period of the 1952-53 fiscal year. The major reason for 
the decline is apparently lagging income tax collections. 
The other categories of employment and withholding taxes 
are so far showing fairly substantial gains. 
Business finance notes. The First National Bank in 
Dallas and the Dallas National Bank have mutually agreed 
to consolidate, subject to the approval of the U. S. Comp­
troller of the Currency and their respective stockholders. 
The new bank, under the name of the First National Bank 
Bureau of Business Research Publications 
Texas Industrialization 
A selected an annotated bibliography 
by Stanley A. Arbingast, Assistant Director, 
and Frank T. Cadena 

The 1954 revision of this bibliography is now avail­able for distribution. The 34-page work lists over two hundred sources of information on the development and pre~ent status of Texas industry. The listing in­cludes books, pamphlets, magazine and newspaper articles generally available for reference. Single copies will be mailed without charge upon request. 

in Dallas, will rank about 25th in the nation on the basis of deposits. It is proposed to dispose of the present Dallas Na­tional Bank building after the merger has been accom­plished. 
The old Wichita Falls and Southern Railroad Company, which operated about 170 miles of track south from Wichita Falls to Dublin, has been bought by the Chicago, Rock Island, and Pacific Company. The southernmost 63 miles of trackage will be abandoned this month. The re­maining 105 miles (Wichita Falls to South Hanlon near Breckenridge), which connect with the Rock Island at Graham, will be operated on an experimental basis for three years. Rock Island, which is paying approximately $750,000 for the securities and some rolling stock of the old railroad, hopes that by integrating the trackage into its system this section can be made to show a slight operating profit. 
According to the Quarterly Financial Report on United States manufacturing corporations made by the Federal Trade Commission, 1953 profits in the chemical and allied products industries, both before and after taxes, were 3 % above 1952. During the fourth quarter of 1953, industry sales amounted to $4.16 billion, compared with an esti­mated $4.34 billion for the same period of 1952. In relation to sales, profits before taxes were approximately 10.7% during the fourth quarter of 1953, compared with an aver­age of 13.1 % in the last quarter of 1952. Working capital for this industry averaged $4.68 billion at the end of the year. 
Petroleum refining fared well during last year. Profits 

before and after taxes were 8% above 1952, totalling $2.88 
billion before taxes, and $2.18 billion after taxes. Profits 
before taxes for petroleum refiners amounted to 13.3% of 
sales during the fourth quarter of 1953, increasing from 
the 12.5% profit margin achieved during the same period 
in 1952. 
Petroleum and coal products industries finished the year 

with relatively less favorable balance sheets than the other 
two groups of industries. After taxes profits for this group 
were down 3% from 1952, declining from $36 to $34 
million. 
The FTC compilation shows that during last year, indus­

tries which form an important part of the economic base of 
the state continued to operate profitably, and it points up 
the fact that the business downswing has been relatively 
less severe in Texas than in other parts of the nation. 
ALFRED G. DALE 
Bureau of Business Research Publications 
Industrial Expansion in Texas 
Stanley A. Arbingast, Assistant Director, and 
Alice Locklin, Library Assistant 

This quarterly supplement to the Directory of Texas Manufacturers lists new industrial plants and expan­sions of existing plants announced during Apri l-June 1954, together with data on their cost, number of employees, and products. Single copies of this re­lease are available without charge, and readers are invited to add their names to the mailing list for future issues. 
TEXAS BUSINESS REVIEW 
LABOR 

Employment rises steadily. Employment in Texas continued for the most part to rise steadily through June, and additional increases for July are predicted by Texas Employment Commission officials. Largest seasonal gains are anticipated in construction work, cotton harvesting, garment manufacture, and in ice cream factories and soft drink bottling plants. A normal uplift in business at tourist courts and laundries was noted, as tourist traffic began approaching peak season proportions. 
High school graduates found jobs scarce in June, par­ticularly in mechanical and manual fields. Most of the new workers who got jobs were placed in clerical fields. 
F. E. James, Dallas district TEC director, said only 150 of 2,000 spring graduates found work there through the TEC. At the same time last year, 420 jobs were found for gradu­ates. TEC expects to have 300 Dallas students placed in jobs this summer. 
Employment gains were registered in Abilene, Amarillo, Austin, Beaumont, Longview, Port Arthur, Texarkana, and Waco. At Abilene, the most significant increase in the non­manufacturing group occurred in the petroleum produc­tion industry. There, rigs that have been stacked are be­ing brought out and put into operation again. 
Amarillo had the largest net increase in employment dur­ing May since December 1952. A net gain of 452 brought the current level to an estimated 44,924. The current level is only 150 or 0.4% below the corresponding period of last year. Employment total will reach 45,238 in July. 
Local employers at Austin indicated they will need 272 additional workers during June and July and an additional 162 workers during August and September. At Texarkana, local employers indicate that total employment will in-

HOURS AND 
crease 385 workers from 38,760 in May to 39,145 in July. Farm employment will show a gain from 4,800 to 5,100 in the period. Additional workers will be needed in Waco during June and July, according to major employers there. The largest demand for men is in the construction indus­try; the largest demand for women is expected to be in garment and canvas goods factories. 
Wage raise rejected. Bus service on 3,000 miles of Continental Dixie's routes between Dallas and points in East and Northeast Texas was at a standstill in mid-June as union members of the Brotherhood of Railroad Trainmen failed to reach a wage raise agreement with the company. The drivers offered to end their 17-day-old strike on June 18 for a 1h cent-a-mile wage raise, but the company said it was unable to offer any more than 1,4 cent for three years. The union offer was for a one-year contract. 

Consolidated Vultee and the International Association of Machinists (AFL) signed a contract covering Convair's Fort Worth plant that gave workers a 5-cent-an-hour in­crease and fringe benefits. The new agreement also added 2 cents of Convair's 3-cent cost-of-living bonus pay to regular pay where it cannot be erased by a declining cost­of-living index. 
High Texas wages. Factory production workers in Texas worked an average of 41 hours in April, compared with the national average of 39 hours. They earned an aver­age of $71.34 weekly as against $70.20 weekly average in the nation. However, average hourly earnings in Texas were 6 cents less than the national average hourly earnings of $1.80. The average weekly hours, hourly earnings, and weekly earnings were all higher in Texas than in Arkansas, Louisiana, and Oklahoma. 

EARNINGS 
Source: Texas Employment Commission in cooperation with the Bureau of Labor Statistics, 
U.S. Department of Labor 
ANNE K. SCHULER 

Average weekly earnings Average weekly hours  Average hourly earnings  
May Apr May May Apr May  May Apr May  
Industr' 1954* 1954 1953 1954* 1954 1953  1954* 1954 1953  
ALL MANUFACTURING.·--··-··-·· $71.51 $70.76 $68.39 41.1 40.9 41.2  $1.74 $1.73 $1.66  
Durable good•-----------·-····-·-···--···· 72.07 71.82 69.04 41.9 42.0 42.1  1.72 1.71 1.64  
Primary metals·-···-·-----------········· 81.60 82.62 75.92 Machinery-except electrical...__________ ___ 75.83 76.25 73.10 40.8 42.6 40.9 40.6 42.6 43.0  2.00 2.02 1.87 1.78 1.79 1.70  
Oil field machinery···-···-·-·-··-······· 81.98 81.98 78.94 Transportation equipment________________ __ 87.76 86.32 80.36 42.7 41.2 42.7 ' 42.9 41.5 41.0  1.92 1.92 1.84 2.13 2.08 1.96  
Fabricated metal products---····-········· 71.50 70.68 72.61 43.6 43.1 45.1  1.64 1.64 1.61  
Lumber and wood products----····-~·-····· 48.99 49 .2 2 47.91 Furniture and fixtures ___________________ --·­50.94 51.88 51.46 42.6 42 .1 42.8 42.4 41.5 41.5  1.15 1.15 1.13 1.21 1.25 1.24  
Stone, clay, and glass­--------·--·----·---­· 64.80 64 .65 61.49 43.2 43.1 42.7  1.50 1.50 1.44  
Nondurable good•--------------­--······-·· 71.51 70.45 67.87 Textile mill products__ ________________ 45.83 43 .27 44.33 40.4 40.2 39.8 40.4 39.7 40.3  1.77 1.77 1.68 1.14 1.09 1.10  
Broad woven goods..~-----····-­46.40 43.31 47.04 40.7 40.1 42.0  1.14 1.08 1.12  
Apparel and fabric products.-----·-· 34.89 34.65 33.76 35.6 35.0 34.8  0.89 0.99 0.97  
Food..­-------------·····-­62.97 62.99 60.91 41.7 40.9 42.3  1.51 1.54 1.44  
Meat packing_·­··-~--··-··----­71.50 69.81 71.68 39.5 39.0 40.5  1.81 1.79 1.77  
Paper and allied products·-·--······-----­75.17 77.00 77.52 Printing________________ ________ _ 82.86 85.39 85.28 43.2 38.9 42.5 44.3 39.9 41.6  1.74 1.77 1.75 2.13 2.14 2.05  
Chemicals and allied products____________ 85 .87 84.18 82.02 42.3 42.3 42.5  2.03 1.99 1.93  
Vegetable oil mills...·----·····---·­·· 49.27 50.59 50.49 Petroleum and coal products______
____ 96.70 94.09 91.03 48.3 40.8 49.6 49.5 39.7 40.1  1.02 1.02 1.02 2.37 2.37 2.27  
Leather products.­-----···--······ 40.87 38.96 39.68 39.3 38.2 38.9  1.04 1.02 1.02  
NONMANUFACTURING  
Mining·---------··---------·­------­97 .89 95.26 92.35 44.7 43.9 44.4  2.19 2.17 2.08  
Crude petroleum products-----------·-·-· 99.46 97.24 93.68 Sulfur_______ __________ ______________ 85 .69 79.97 79.00 44 .6 41.8 44.0 44.4 39.2 39.9  2.23 2.21 2.11 2.05 2.04 1.98  
Public utilities­-------------·· 67.09 66.47 63 .83 39.7 89.8 40.4  1.69 1.67 1.58  
Retail trade___________________ 
55.34 54.48 53.94 42.9 42.9 43.5  1.29 1.27 1.24  
Wholesale trade 72.21 71.21 67.55 43.5 42.9 43.3  1.66 1.66 1.56  
Figures do not cover proprietors, firm members, or other principal executives.  
•Preliminary-subject to revision upon receipt of additional reports.  

JULY 1954 




Cotton Textiles: 
An Opportunity 1n Texas 
Perhaps never before in Texas' industrial progress has the opportunity for cotton textiles been so favorable. The present situation in the general industry suggests further regional shifts, particularly from New England. But there are also warnings of difficulties in the Southeast. Texas and the Southwest, with recent growth and prosperity, ap­pear as attractive new areas for expansion of this industry. 
The opportunity for textiles should be approached real­istically in Texas, in the interest of sound local develop­ment as well as for the profitable operation of specific plants. An understanding of the national industry is helpful to this realism. The outstanding influences include th~ trends towards integration and technological change, the regional character, and the primary factors of cost and lo­cation. No single characteristic or trend or combination of factors disqualifies Texas. On the contrary, the character­istics of the industry point toward favorable consideration of this state. 
Texas is fully aware of how an expansion of cotton tex­tiles would benefit the economy of the state by providing a new block of industry particularly suitable for agricultural areas and small towns. It would permit the creation of ad­ditional wealth in processing values, investments, and pay­rolls and utilize the state's principal agricultural raw ma­terials. It would provide new and diversified job opportuni­ties for special population groups such as the released farm worker, women, and in certain areas the Latin-American. And it would permit the upgrading of both skills and wages and encourage the location of complementary and supplementary services and industries. This understanding and appreciation of such benefits would guarantee a friend­ly reception to new textile plants as well as a cooperative at­titude on the part of cities and towns toward their suc­cessful and profitable operation. 
Because of the mutual advantages accruing to both the industry and the state, a sound and growing textile industry is recognized as one of the major requirements for a bal­anced economy in Texas. 
Profits, both immediate and for the long run, are the key to a possible expansion of textile industry in Texas. Since prices for textile products remain relatively stable, the profit structure depends largely on savings in costs. Margins are so low that all elements of cost are significant, even though labor and raw materials account for 70% of the total. 
Profits are also the basis for the future of the industry. Unlike other fields where expansion may be financed by several methods and from various sources of funds, textiles have historically been limited to profits as the principal basis for expansion. 
The industry is obviously sensitive to its profit margin position. This has been the motivating factor in cost-saving technology, integration, market flexibility, and other in­fluences. It was essentially the economic reason for the first regional shift in the industry in the 1920's and is now the key to the North-South competition. It is the principal factor that this industry will consider with respect to Texas and the Southwest. What, then, is the profit potential? 
Specifically, what does Texas offer now and for the fu. ture; and how does it compare with existing or potential regions for location? There are both general and specific features of a profitable Texas location for this industry. 
Texas is one of a very few regions in the country which would meet the general requirements for textile manufac­turing. When the first regional shift occurred it was from New England to the Southeast because the Southeast could provide the basic factors: cotton raw material and a plenti­ful labor supply. As new shifts are contemplated there are only two other regions in this country which can fulfill these requirements, the Southwest and the West Coast. But the Southwest has at least two major advantages over the West Coast. Geographically the Southwest is more cen­trally located for distribution purposes. It would permit greater accessibility at lower cost for shipping textile pro­ducts to all points of the nation. Second, general labor costs are not as high as on the West Coast and the long-run prospects are for more labor stability in the Southwest than in the fast-growing areas of the West. 
This would leave only the Texas area, a region which produces cotton and has an abundant supply of labor, a re­gion from which the West Coast could be served as well as other marketing areas of the nation. 
Texas would represent a new region for a new industry. The modern textile industry, although an historical one, is geared to new technology, to integration, and to bigness, to new fibers and blends of fibers. It is on the threshold of new products, perhaps even of becoming a new industry. With bigness and newness, the essential question is whether a new environment would be desirable? 
There are many general advantages of a new industrial area: reservoir of untouched labor, a vigorous and ag­gressive people with conservative attitudes, yet adaptable to new ideas and new techniques, and a dynamic economy with potentially rich markets. A new area also permits in­dustry to take advantage of new technology and new buildings. 
And yet Texas has had sufficient experience with modern industry to be able to assimilate any new development into its economy without the difficulties encountered in com­pletely untouched areas. This would be a significant differ­ence from what happened when the industry moved into the Southeast. In the Southwest there is already a diversity of industry, labor and wage relationships have been es­tablished through long experience, and a limited textile in­
TEXAS BUSINESS REVIEW 
dustry has prospered. And yet this is still a new region for expansion purposes in the sense that there are many rural sections, towns, and labor groups which need the touch of industry. 
Since the average life of textile equipment is from 30 to 40 years the industry is concerned with the long-term trends and prospects of a region. In this respect, Texas and the Southwest are increasing their relative position in the nation. 
The major trends reflect that the primary market area of Texas mill locations is developing at a rate faster than the average for the United States in growth of population, total income payments, per capita income, number of production workers per 1,000 population, and the value of private construction. And projections for the future indicate that the population and power of the primary market area will continue to increase faster than the United States' average. 
The general pattern of migration in this industry indi­cates an adaptation to regional cost structures. Textile man­agement is therefore sensitive to the general cost position of a region. 
The marketing opportunity for cotton textiles from a Texas location is one of the outstanding advantages offered by this region. 
The Texas market area has a population of 48.2 million and the population of this area is increasing at a greater rate than the United States' average. Income payments to individuals in the Texas market area total $67.8 billion. The economy of this area is developing faster than the rest of the nation. Texas mill locations have a freight rate ad­vantage in shipments made to all states west of the Mis­sissippi River over Southeastern and New England loca­tions and can compete favorably but does not have com­plete freight rate advantages in a region east of the river. The apparel industry in the Texas market area is expanding faster than the average for the United States. 
There are special marketing opportunities within the Texas market areas. None of the textile mills west of the Mississippi River produces print goods, and the production of broadcloth and toweling is limited. Only one mill pro­duces gingham and dress goods and four mills, wide sheeting. 
Labor is both a principal location determinant and a ma­jor cost item for cotton textiles. Most studies indicate that wages paid to production workers alone in this industry ac­count for about one-third of the total cost, depending upon the product; and next to the expense of raw material, this is the most significant cost item. 
Labor cost may vary considerably between regions and between plants making the same kind of cloth within the same region. Management has a wide choice of adjustments to labor costs. Labor-saving equipment may be used, pro­duction design may be changed, or a move may even be made to lower labor cost area. Labor cost is further com­plicated by such factors as productivity, fringe benefits, the number of shifts, work load and assignments, governmental regulation, and the competitive relationship of the industry to the local economy in which it operates. 
Management therefore concentrates on savings in labor cost as the principal opportunity for widening its profit margin. In considering a new area of location, it is the availability of labor as well as the cost which are essential to the decision. Texas is in a highly favorable economic position in this respect, for its textile wages are the lowest in the nation. 

Industry will find available reserves of labor in Texas. And in addition to the number of workers that can be ob­tained from the labor force now employed or unemployed, there are other labor groups which can be drawn upon, the released farm workers, women workers, and in some areas the Latin-Americans. Industry will find labor that is in· telligent, easily trained, acquainted with the use of ma· chinery, and dependable. 
Further, industry will find that Texas labor laws respect the rights of management as well as of labor. These laws grant certain rights and privileges to labor, but they also place responsibilities upon labor organizations. For ex· ample, the check-off list is illegal. 
The water resources of Texas are ample and of a suitable quality in many parts of the state to support a cotton textile industry. There are 525 reservoirs in Texas, and the total capacity of the 36 largest reservoirs is 32 million acre-feet. The average annual flow of Texas streams is approximately 63 million acre-feet, with only nine million acre-feet being use at the present time. There are large underground res· ervoirs of water at economical drilling depths. One of the largest spring areas of the United States is located in Texas along the Balcones Fault. 
Texas is the only state that has a complete inventory of its cotton with respect to fiber properties other than grade and staple. Texas produces cottons which are similar in fiber characteristics to all growths with the exceptions of Peruvian and the coarse Asiatics. For the past five years Texas has produced over 4 million bales annually. 
The cotton crop of Texas is produced under a wide range of soil and climatic conditions. The varieties planted are adapted to the physical environment of each geographic area. Staple length of cotton grown in Texas ranges from % inch to 1 % inches. The "bread and butter" cottons, % through 31/32 inch, amount to approximately 50% of the annual production. Production of one inch through 11/16 inches cotton is about 30% of the total annual growth. Over 5% of the crop is 1 3/ 32 inches or longer and about 5% of the crop is 13/ 16 inch or shorter. Over 35% of the crop is Middling white or higher in grade. About 20% of the crop is Strict Low Middling white or lower in grade. Approximately 40% of the crop is usually Spotted in the grade of Low Middling through Good Middling. These percentages, however, will vary according to seasonal weather conditions. 
The wide range of fiber properties found in the Texas crop is more important to the mill than grade and staple. Year in and year out the tensile strength of the Texas crop will average 80 thousand pounds and about 70% of the crop will fall in the strength range of 75 to 85 thousand pounds. The average fineness of the crop has in recent years been about 4.5 micronaire units, and about 70% of the crop has fallen in the range of 3.8 to 5.2 micronaire units In uniformity, the cotton of the state will range from 76% to 80%. Maturity of the cotton will fall in the limits of 76% to 82%. The fiber data as reported are from early and mid­season pickings. Late cotton will not be up to the standard of the early cotton, but this is true in all parts of the cot· ton belt. 
Texas cotton will, grade for grade and length for length, usually make stronger yam than can be had from other parts of the Cotton Belt. This situation arises from the fact that a period of reduced rainfall usually sets in in Texas at the time when the plant begins to flower. Fiber strength is closely associated with moisture available at blooming time and for some 20 days thereafter. In general Texas cotton will do the work of cotton that is 1/ 32 of an inch longer from other parts of the cotton belt. This means a saving of $1.00 to $15.00 a bale depending upon the length of cotton in question. The superiority of Texas cot­ton is shown by spinning tests conducted by the United States Department of Agriculture over the seasons since 1946. Consequently, a mill located in the heart of an area that produces a wide variety of superior cottons has a dis· 
tinct advantage in the selection of raw material. 
The cost of cotton is the greatest cost item for the cotton textile industry, accounting for almost 50% of the total costs. The difference in the price paid for cotton at different locations reflects transportation costs, handling charges, time costs and incidental costs of merchandising. 
A cotton textile mill located in Texas will pay at least 
S7.50 a hale less for cotton than a mill in the Southwest or 
New England. The cotton raw material advantages of Texas 
are without equal in the nation. 
The mild climate of Texas offers many advantages to the 
industry. It reduces construction costs, fuel requirements, 
transportation expenses associated with inclement weather, 
and favors efficient processing conditions for cotton tex­
tiles. Texas weather rarely causes protracted delays in plant 
operations. In addition, the mild climate of Texas is a 
major factor in lowering living costs in the state. 
The average annual rainfall distribution varies widely, 
ranging from approximately 55 inches in East Texas to 8 
inches in extreme West Texas, with about 40% of the state 
receiving 30 inches or more. The temperature in the eastern 
part of the state averages from 62° F along the Red River 
in the northern part of the state, to 70° F along the Gulf of 
Mexico. The range in average annual temperature is only 
8° F over a north-south distance of about 500 miles. 
Texas is the only state that supports an organization 
dedicated to research in the problems of cotton economics, the technology of mill operations, and problems associated with cotton growing and seed utilization. Direction of the research is under the Cotton Research Committee of Texas composed of the Chancellors of The University of Texas and the Agricultural and Mechanical College System of Texas and the President of Texas Technological College. 
The Texas Technological College is the only recognized textile school west of the Mississippi River. Extensive re­search facilities are available at the major colleges and universities. 
The Southwest Research Institute, a private organization at San Antonio, has the facilities to conduct research in many fields associated with problems of the textile indus­try. The United States Testing Company maintains a com­plete fiber laboratory in Dallas. One of the fiber and spin­ning laboratories of the United States Department of Agri­culture is located at College Station, Texas. 
The electric power and light companies in Texas offer industry an adequate, dependable supply of electric pow­er at rates which compare favorably with the power rates in the more highly industrialized areas of the nation. Texas has an abundant supply of natural gas and fuel oil and the largest deposits of lignite in the United States. 
The governmental agencies in Texas have a clear con­ception of the value which manufacturing plants contribute to the economy of the state and the communities and they deal fairly, intelligently, and consistently with the existing tax problems. The citizens of Texas feel that it is not right to penalize existing industry by increasing its taxes suf­ficiently to subsidize new industry through tax waivers. It is preferred that each industry, as well as each person, pay a fair share of governmental costs. 
Texas has a conservative tax policy. There is no state corporation income tax, no general sales tax, and no state individual income tax. Texas does not have a manufac­turer's use tax and no payroll taxes for revenue purposes. Thirty-seven states have higher per capita state taxes than Texas. 
NoEL H. Wooo 


Texas Business Review 
This month Next month .•• and every month, the special report you will receive your copy of the semi­featured in the Texas Business Review annual statistical issue of the Texas is reprinted for free distribution to in­Business Review. This issue wi ll feature terested readers. If you believe that complete information on a revised In­some of your friends or business associ­dex of Texas Business, designed to ates would be interested in one or more measure with maximum accuracy the of these cover stories from the Review, fluctuations in general business activ­just send their names to the Texas Busi­ity within the state. An analysis of the ness Review Circulation Division, Aus­new index by Richard C. Henshaw, Jr. tin 12, Texas, and copies will be mailed will explain how statisticians gauge the to them. shifting tides of the Texas economy. 
TEXAS BUSINESS REVIEW 

Local Business 
Percent change Percent change 
May 1964 May 1954 May 1964 May 1964 May from from May from from City and item 1954 May 1953 Apr 1954 City and item 1954 May 1963 Apr 1964 
ABILENE (pop. 55,000)r BEAUMONT (pop. 94,169)u 
Retail sales ---------------------------------+ 3 + Retail sales• -----------------------------------------15 + Department and apparel stores ---------­-3 Automotive stores• ------------------------------18 
+ 

Postal receipts -----------------
--------$ 62,200 + 10 + 6 Department and apparel stores______ -2 Value of building permitsII ---------------------$ 616,525 + 2 -45 Eating and drinking places• -----------x -11 Bank debits (thousands) ------------------------$ 51,979 + 4 4 Food stores• -----------------------------+ 19 + End-of-month deposits+ ----------------------$ 52,305 + 6 + General merchandise stores* ----------­-2 Annual rate of deposit turnover ----------12.0 Lumber, building material, 
Employment --------------------------------26,650 + 5 + 1 and hardware stores• ---·········-·--··-·--· -40 8 Manufacturing employment -------------­3,210 3 3 Postal receipts ----------------------------
-----
-$ 78,354 x -13 Percent of labor force unemployed --------5.2 + 16 + 4 Value of building permitsll --------------------$ 470,278 -14 -47 Bank debits (thousands) -----------------$ 111,408 -11 + 2
ALPINE (pop. 5,261) End-of-month deposits (thousands) L ..$ 94,468 -1 Postal receipts -----
-----------------$ 3,301 + 1 + 7 Annual rate of deposit turnover -----·----­14.0 -11 + Value of building permitsD -----------------$ 92,000 +667 + 1573 Employment (area) ------------------------------78,200 2 x 
Bank debits (thousands) ______________$ 2,110 x + 6 Manufacturing employment (area) .... 26,400 -1 
+ 

End-of-month deposits (thousands) L ..$ 3,957 -3 Percent of labor force unemployed Annual rate of deposit turnover --------6.3 0 + 11 (area) ------------------------------6.6 + 32 3 Waterborne commerce (tons) ----------58,233 + 79 + 69
AMARILLO (pop. 92,592)r Reail sales• ---------------------2 -3 BEEVILLE (pop. 9,348)
Department and apparel stores___________ 
2 -15

+ Postal receipts -------------------------------------$ 6,142 + 22 + 1
Furniture and household 
Value of building permitsII -----------------$ 97,354 +982 -16

appliance stores• -----------------------­3 + 73 _ ______________$
Bank debits (thousands) 6,348 5 x

Lumber, building material, + 
End-of-month deposits (th•msands) L ..$ 11,534 x
and hardware stores• ---------------------2 4

+ Annual rate of deposit turnover______ 6.6 6
+Postal receipts -------------------------$ 116,839 1 -4 Value of building permits issuedll----------$ 1,245,876 -13 -47 Bank debits (thousands) -------------$ 120,567 2 BIG SPRING (pop. 20,654)r End-of-month deposits (thousands)+....$ 97,057 

Retail sales -------------------------------------3 

Annual rate of deposit turnover__________ 14.9 + Department and apparel stores________ 
+ Employment ----------------------------------43,200 x + 
Drug stores -------···-----------------------4 

Manufacturing employment ------------4,670 -10 Lumber, building material, Percent of labor force unemployed -----5.1 + 6 -11 
and hardware stores ----------------------19 Postal receipts -------------------------------------$ 16,697 + 20 ARLINGTON (pop. 7,692) Value of building permitsll --------------------$ 49,875 -85 -86 Postal receipts -----------------------$ 12,954 + 35 + 5 Bank debits (thousands) -----------------------$ 20,139 + + -45 -57
Value of building permitsll _______________$ 547,894 End-of-month deposits (thousands) L .. $ 22,944 Bank debits (thousands) ___ ____________$ 9,728 Annual rate of deposit turnover.__________ 10.4
+ 27 4 + + 
End-of-month deposits (thousands)+....$ 10,440 + 12 + Annual rate of deposit turnover -------11.3 + 13 7 + 

+ BORGER (pop. 18,159) AUSTIN (pop. 168,500)r Postal receipts -------
-------------------$ 12,815 + 15 + 24 Retail sales ------------------------------3 -1 Value of building permitsll ------------------$ 50,590 -27 + 92 Automotive stores ------------------------­3 -19 Bank debits (thousands) --------------------$ 10,971 8 
Department and apparel stores -----------­7 -12 End-of-month deposits (thousands)t....$ 13,096 
Annual rate of deposit turnover_________

Eating and drinking places -------------­+ 13 -2 9.9 
Filling stations ----------------------­+ 51 + 14 
Furniture and household 

BROWNSVILLE (pop. 36,066) 

appliance stores ------------------------­+ 32 Retail sales• -------------------------------------4 + 24 
Lumber, building material, Automotive stores• ---·-------------·-­+ 2 + 27 

and hardware stores --------------------­7 -13 Lumber, building material, Postal receipts -------------------------------------$ 214,009 + 8 -10 and hardware stores• ------------------------25 + 13 Value of building permitsII ----------------------$ 3,546,837 + 3 -23 Postal receipts -------
-------------------------$ 18,966 x x 
Bank debits (thousands) ------------------$ 116,150 + 11 4 Value of building permitsll ----------------$ 99,353 -81 -42 End-of-month deposits (thousands)+....$ 106,492 5
+ + 4 Tourists entering Mexico --------·------------­882 + 28
Annual rate of deposit turnover____________ 13.3 

+ 10 8 Tourist cars entering Mexico 853 + 28 Employment --------------------------------61,200 + 2 x Waterborne commerce (tons) 86,313 + 12 + 14 
Manufacturing employment --------------4,150 + 2 Percent of labor force unemployed........ 4.2 + 35 2 


BROWNWOOD (pop. 20,181)

BAYTOWN (pop. 22,983) Retail sales ----------------------------------------------+ -8 Department and apparel stores__________ 
_
Postal receipts --------------------------$ 15,754 + 13 x + -17 Value of building permitsD --------------$ 125,230 -33 -55 Furniture and household Bank debits (thousands) _____________ $ 16,457 + 48 8 appliance stores ------------·---------··········-· + 4 + 6
+ End-of-month deposits (thousands)+....$ 18,927 1 -9 Postal receipts ------------------------------------$ 14,867 + -6 
Annual rate of deposit turnover__________ 9.9 7 + 14 Value of building permitsll ------------------------S 18,507 -29 -59 
Bank -debits (thousands) _________________________$

Employment (area) ----------------357,800 x + 9,294 + 7 3 Manufacturing employment (area).... 80,675 .5 x End-of-month deposits (thousands)+---$ 13,041 + 2 Percent of labor force unemployed Annual rate of deposit turnover__________ 8.5 
+ 

(area) -----------------------------------------4.3 + 65 + 2 
For explanation of symbols, see page 23. 

JULY 1954 

Conditions 
Percent change Percent change 
City and item  May 1954  May 1954 from May 1953  May 1954 from Apr 1954  City and item  May 1954  May 1954 from May 1953  May 1954 from Apr 1964  
BRENHAM (pop. 6,941) Postal receipts ---­--­-----­-----­--------­$ Value of building permits ll __________ __________$ 4,539 47,722  -9 -44  -26 -47  DEL RIO (pop. 14,211) Postal receipts -------------------­-­-$ Value of building permitsll ____
________$ 9,421 62,694  + 7 + 77  -4 + 29  
Bank debits (thousands) ---
--
--------­--$ End-of-month deposits (thousands) t....$  5,605 10,294  + + 4  4 x  Bank debits (thousands) ------------­--------­$ End-of-month deposits (thousands)+....$ 8,286 11,076  +  3 7  + 5 + 2  
Annual rate of deposit turnover________ ____ BRYAN (pop.18,102)  6.5  0  3  Annual rate of deposit turnover______
____ Tourists entering Mexico ---­----­--------­Tourist cars entering Mexico ---­---­---­- 9.1 23,766 7,567  17 9 + 3  + 1 + 14 + 16  
Retail sales• --------­-----­--------­------­-----­ + 1  4  
Automotive stores• -------­------------­------·­Department and apparel stores ______ _____ 
Postal receipts ---­--­------------------­-------$ Value of building permits II ---­----­----­----$  17,094 110,020  + 15 -20 + 16 + 116  + 7 -76  DENISON (pop.17,504) Retail sales --­-----------------------------­------Automotive stores ---------­----------­-----­---­­Department and apparel stores ---­---­---­ --- 8 11 9  -5 -2 -20  
CHILDRESS (pop. 7,619) Retail sales• --­-----------­-----­-----­-----­Department and apparel stores____________ Filling stations• --------­--------­-----­--­------­Food stores• ---­---­-------­--------------­--­---­ -7 -14 -3 -17  + 3 -24 + 7 + 2  Postal receipts --­----------­---------­------$ Value of building permitsll --­--------­------$ Bank debits (thousands) ---­-­-------------$ End-of-month deposits (thousands) t ....$ Annual rate of deposit turnover__________  14,343 37,765 11,411 18,604 7.6  + 23 -58 -13 + 23 -29  + 16 -41 + 3 + + 4  
Lumber, building material, and hardware stores• ---------­---­--­---···  + 5  + 32  DENTON  (pop. 21,372)  
Postal receipts  ---­-----­---­-------­--­--­----­$ 4,004  -11  -13  Retail sales ---------­---­--­----­--­----­ 9  - 5  
Value of building permits issued_
___ __ ___ $ 6,300  -94  +330  Postal receipts  ---­----­------­-----------­--­$ 20,066  + 5  + 9  
Retail  CORPUS CHRISTI (pop.122,956)u sales ---­-------------­-------------­----­----­+ 3  - 2  Value of building permitsll ----­----------­$ Bank debits (thousands) ---­-------­--­--$ End-of-month deposits (thousands) L ..$ 110,475 10,093 13,733  9 + 1 + 5  -29 4 1  
Apparel stores ------------­---­----­----­---­--­---­Automotive stores -------­--­---­------­---­----­ x + 12  -23 + 4  Annual rate of deposit turnover___________  8.8  3  2  
Department storest ----­------­----------­-----­Postal receipts ----------­---­----­----------­-----­-$ 120,495 Value of building permitsll ____________________ $ 3,195,499 Bank debits (thousands) --­---­----­---­---$ 147,140 End-of-month deposits (thousands)+....$ 117,959 Annual rate of deposit turnover.__________ 15.8 Employment -----­------------------------­-----­60,700 Manufacturing employment ---­----­---­7,875 Percent of labor force unemployed________ 5.7  -5 + 10 + 87 + 4 + 8 + 3 x + 6 + 21  + 3 -3 + 62 x + 13 7 x x -11  EAGLE PASS (pop. 7,276) Postal receipts --­--------­-------------­--$ 4,638 Value of building permits II ---­-------­-----$ 13,975 Bank debits (thousands) _______________$ 3,770 End-of-month deposits (thousands) t .-.$ 3,808 Annual rate of deposit turnover___________ 13.0 EDINBURG (pop.15,993)r  + 3 -93 + 5 + 17 + 8  -6 -94 + 14 + 20 + 10  
Wateborne commerce (tons ) -----­------­-1,884,716  -18  + 7  Postal receipts ---­---­-------­-------­---­----­-$ 7,110  + 2  -13  
CORSICANA (pop.19,211) Postal receipts -----------------­---­------------$ 13,629  + 16  1  Value of building permits II -------­----------$ Bank debits (thousands ) --------­------­------$ End-of-month deposits (thousands ) L ..$  4,250 8,561 9,160  -92 + 1  -86 + 17 -3  
Value of building permitsI 
-----­----­--­--$ 32,320  -50  0  Annual rate of deposit turnover_________  11.0  + 4  + 24  
Bank debits  (thousands )  -------------­--­-$ 12,414  + 15  + 2  
End-of-month deposits (thousands )+....$ Annual rate of deposit turnover --------­--­ 20,746 7.2  + 7 + 9  x + 3  EL PASO (pop. 136,918)u Retail sales• ---­----------------­-------------­----­ - 3  -11  
DALLAS  (pop. 538,924)u  Apparel stores• ------------­-------­---­­Automotive stores• -------­----------------·-·  + 44 -14  -H -13  
Retail sales• -------­----­----­- --------­--­-- +  5  + 2  Department storest  -----­---------------­--­---­ 8  - 8  
Apparel stores• ------­-----------­----­--­---­Automotive stores ------------­-------­------­-­ -5 + 21  -11 + 20  Drug stores• --­------­--­----­----------­General merchandise stores• ---­---­--·  + 9 -9  + 10 -15  
Department storest -------------------------­--­Eating and drinking places• -----­------­Filling stations• -------­--------------------­----­ 9 + 5 x  3 + 1 -1  Postal receipts ---­---------­------­-------­--$ 185,532 Value of building permitsll -------­----------­---$ 2,207,256 Bank debits (thousands ) _________________ $ 174,428  + 10 8 3  -3 + 42 5  
Florists•  ----­ ---­-----­---------­---­- +  - 12  End-of-month  deposits  (thousands) l ----$  120,080  + 4  x  
Food stores•  ---­------­--­----­---­-------­ + 4  5  Annual  rate of deposit  turnover__________  17.4  5  
Furniture and household app!fance stores• ----------­-------­General merchandise stores• _________ 
 x  + 14 -3  Employment --­---­------------­----·------­-------­Manufacturing employment --­---­----­-Percent of labor force unemployed_______  70,900 10,725 4.7  + 2 + 3  +  x  
Lumber, building material,  Air express shipments  
and hardware stores• ------­---------­-­ + 8  -12  Tourists  entering Mexico  -----­---­-----­------­ 2,631  -14  + 10  
Office, store, and school  Tourist cars entering Mexico -------­·­··--··­ 963  - 11  +  
supply dealers• ------------------­-----­----­Postal receipts ----­--------------------­$ 1,490,790 Value of buflding permltsO ______________$10,425,445 Bank debits (thousands) ______________$ 1,674,056 End-of-month deposits (thousands)+­-·$ 914,932 Annual rate of deposit turnover._________ 22.2 Employment ----------------­--­304,500 Manufacturing employment --------­----­75,300  -10 + 3 + 20 + 3 + 6 2 x x  +14 8 -15 + x 2 x  GARLAND (pop. 10,571) Postal receipts --------­-------­--­------------$ 10,582 Value of building permitsll __
_________ __ ___$ 439,470 Bank debits (thousands) -----­----­------­$ 10,160 End-of-month deposits (thousands ) t ....$ 9,897 Annual rate of deposit turnover_________ 12.1  + 12 -18 + 2Z + 16 + 5  -13 -31 1 + 2  
Percent of labor force unemployed______  8.3  +  57  For explanation of symbols, see page 23.  

TEXAS BUSINESS REVIEW 

LOCAL BUSINESS CONDITIONS 

Percent change Percent chan11:e 
May 1954 May 1954 May 1954 May 1964 May from from Mny from from City and item 1954 May 1953 Apr 1954 City and item 1954 May 1953 Apr 1964 
FORT WORTH (pop. 315,578)u GONZALES (pop. 5,659) 
Retail sales• ------------------···-··-········· 5 -3 Postal receipts ------·-----------·······-··---$ 8,842 -20 -3 Apparel stores• ------------·-··-··-·······-····­9 -18 Value of building permitsll -··········-··········-$ 17,525 + 15 + 28 Automotive stores• ----------------·-----···--· 2 + 2 Bank debits (thousands) --··········--·····$ 4,414 + -6 Department storest -------·-··---····----··-···--7 5 End-of-month deposits (thousands) t....$ 6,183 x x Drug stores• ------·-·-·-·-·-·········--· 2 + 5 Annual rate of deposit turnover______ 8.6 + 2 -19 
Eating and drinking places• ................ -16 + 8 
Filling stations• -··-------·-·----······-··--· + 28 + 7 


HARLINGEN (pop. 30,038)r
F ood stores• ----·--·--·---··-····----· -17 + 
Furniture and household 

Postal receipts ------·----·-····-···-···$ 22,506 + 3 -5 Value of building permitsn .................._$ 137,815 8 -21
appliance stores• ----------------------­-25 + 23 

-13 Bank debits (thousands ) ··-··-·-········-··$ 23,834 + 8Hay, grain, and feed stores• --------------­-10 End-of-month deposits (thousands) t....$ 18,023 1 x
Jewelry stores• -----------------------­+ 3 + 42 
Annual rate of deposit turnover________ 15.8 9

Lumber, building material, + 
and hardware stores• ---------------------4 7 Postal receipts -----------··--···-···-----·------$ 479,499 + 4 4 HENDERSON (pop. 6,833) Value of building permitsll -·-····-·-···-------$ 3,308,246 + 11 3 7
Reta il sales• -------····--·-·······--······ ­
Bank debits (thousands ) ----··-·---·-··--·$ 507,315 + 3 2 Automotive stores• ---------·----·--·-----···· -17 

End-of-month deposits (thousands) L ..$ 333,295 + + 1 Department and apparel stores............ 
Annual rate of deposit turnover_________ 18-4 + 2 4 8 

Food stores• ·--------·----·-·--------­-9 Employment ·----------------·----···-173,900 + ·+ Lumber, building material, Manufacturing employment ---------· 52,625 1 + 
and hardware stores* --------------+ 57 + 13 
Percent of labor force unemployed_____ 4.9 + 14 4 

Postal receipts ·--···--··---·····--·---··--·$ 7,478 + 5 + 11 Value of building permits ll ·····-·····-----$ 105,500 + 220 -22 GALVESTON (pop. 71,527) u Bank debits (thousands) ---------$ 4,990 -18 -14 
Retail sales ------------------·-------5 -6 -2 x
-End-of-month deposits (thousandsH-.$ 13,268 Department and apparel stores________ -7 -13 Annual rate of deposit turnover______ 4.5 -15 -13 
F ood stores ------·-----------------·-+ 33 1 
Lumber, building material, 


HEREFORD (pop. 5,207)
and hardware stores ---------------------10 + 2 
Postal receipts -·········--·-···-------·--·$ 4,585 5 8

P ostal receipts -------------···-·--···--·$ 62,572 -6 7 + + 
Value of building permits ll ···-···········---$ 107,000 + 74 + 41Value of building permitsll ---------------·-·$ 356,980 + 73 -54 Bank debits (thousands) --------·-·······$ 6,897 3 4

Bank debits (thousands) -·------·----·$ 69,104 -6 6 + 
End-of-month deposits (thousands) t---$ 8,555 -6 3
End-of-month deposits (thousands ) L ..$ 66,689 -14 Annual rate of deposit turnover...·-····-9.5 + 10

Annual rate of deposit turnover__________ 12.4 + 9 2 Employment (a rea) -----·-·-·------· 44,250 -6 x Manufacturing employment (area) ____ 5.9 + 69 HOUSTON (pop. 700,508)u Percent of labor force unemployed 
Retail salesn ---·--·-···-·-·-·····-·-----­-8 -5 0
(area) ---------------·---5.9 + 69 Apparel storesil ------------------­-11 -17 Automotive storesn ----·---------···-··· -10 9GLADEWATER (pop. 5,305) Department storest --·····-----------­5 + + Drug storesn ···-··------····-·······-··-· -6
Postal receipts ----------------·-----·$ 5,134 + 9 + 13 x Value of building permitsR ----·----··----$ 296,000 +492 +517 Eating and drinking placesIl --------­-5 Bank debits (thousands) ----······-·-····$ 3,658 -19 9 
Filling stationsIT ------·········-··------15 End-of-month deposits (thousands) t....$ 4,075 -14 
+ Food storesIT ··-····----------·-······-·--·--10 -18 
Annual rate of deposit turnover ........___ 10.9 -8 Furniture and household Employment (area) ---------·-·-···--23,950 x 23
appliance storesIT ---·-··················· ­Manufacturing employment (area).... 4,030 + 2 General merchandise storesU 

------­-15 Percent of labor force unemployed 
Liquor storesU ·····-··--·-···-············· 9 + (area) --------------····-··--5.1 + 2 Lumber, building material, and hardware storesIT -·-·····-------··· + 7 + 1GOLDTHWAITE (pop. 1,566) Postal receipts ---------------$ 957,359 + 4 2 Retail sales• -----------------····-·· + 1 + 5 Value of building permitsll --·······--···--$11,772,836 + 6 + Automotive stores• -------------------19 -11 Bank debits (thousands) ---·-···-----$ 1,706,002 5 x
+ Postal receipts ---------------------$ 1,377 + 12 -11 End-of-month deposits (thousands) t._.$ 1,124,728 8 2
+ 

Bank debits (thousands) ---·-··--··-·--··$ 3,594 + 2 x Annual rate of deposit turnover_______ _
_ 18.0 4 End-of-month deposits (thousands ) t ._.$ 3,347 + 21 2
+ Em ployment (area) --···-··-·-·-----···-· 357,800 x + Annual rate of deposit turnover__________ 13.0 -17 2 
Manufacturing employment (area) ___ 80,575 5 x Percent of labor force unemployed GREENVILLE (pop. 17,500)r (area) ···········-·-·····--········-·-··············· 4.3 + 65 + 2 Retail sales• ···-······-··-·-·······-··-·····-······· + 15 + 19 Apparel stores• --·-··---·········-···--······· ...:. 9 -15 
JASPER (pop. 4,403)

Department and apparel stores.·-······· -10 -11 Drug stores• ----·-·····-·····-·················-­+ 7 Retail sales• ----·-·····-······················-······· + 11 + 17 Automotive stores* -------------------·-----+ 6 + 30
Food stores• -------------·······-············· + 4 Lumber, building material, Food stores• ·-··-·········-·····-··············· + 23 + 15 General merchandise stores• --------------+ 1 + 8
and hardware stores* ---······-···--·-··· +IO Postal receipts -------·················-$ 14,815 -15 
Postal receipts ---·--·-··········--·-······-···$ 4,400 + 27 + 11 

Bank debits (thousands) ----···-·-····-$ 4,927 + 18 + 13 ' End-of-month deposits (thousands) t---$ 5,430 + 4 x Value of building permitsll ----------····$ 35,766 -52 -58 Bank debits (thousands) --·-···--·$ 10,956 + 3 3 End-of-month deposits (thousands ) L ..$ 15,168 + 21 x Annual rate of deposit turnover_ _______ 10.9 + 16 + 15 
Anuual rate of deposit turnover.·-········ 8.7 -16 2 For explanation of symbols, see pa11:e 23. 
JULY 1954 

LOCAL BUSINESS CONDITIONS 


Percent change  Percent change  
City and item  May 1954  May 1954 from May 1953  May 1954 from Apr 1954  City and item  May 1954  May 1954 from May 1953  May 1954 f rom Apr 1954  
KERMIT (pop. 6,912) Postal receipts _____ ______________$ Value of building permitsO ----­----­--$ Bank debits (thousands) ------$ End-of-month deposits (thousands) *--$ Annual rate of deposit turnover_ _____  4,875 41,600 2,853 2,992 11.9  + 2 +1287 -7 + 18 -14  -12 -48 + + 8 + 3  LOCKHART (pop. 5,573) Postal receipts --------------$ Value of building permitsU ____$ Bank debits (thousands) ------$ End-of-month deposits (thousands) t-$ Annual rate of deposit turnover____ 3,066 30,060 2,638 4,558 6.9  + 21 + 258 -13 + 1 -13  + 5 + 29 -13 -1 -12  
KILGORE (pop. 9,638) Postal receipts -------------$ Value of building permits i .------------$ Bank debits (thousands ) __
___________$ End-of-month deposits (thosuands) *--­-$ Annual rate of deposit turnover_______ Employment (area) ------------------­Manufacturing employment (area) __ Percent of labor force unemployed (arer.) ------­---------------­8,769 102,900 12,172 14,212 10.2 23,950 4,080 5.1  -6 +758 1 + 1 -1  + 24 -17 9 2 7 x + 2 + 2  LONGVIEW (pop. 43,328)r Postal receipts --------------$ Value of building permits O -----------$ Bank debits (thousands) ------­--­----$ End-of-month deposits (thousands) t---$ Annual rate of deposit turnover_______ 
Employment (area) --------­-----­--Manufacturing employment (area) __ Percent of labor force unemployed (area) ------------­-------­27,925 453,400 30,593 34,063 10.8 23,960 4,030 5.1  + 17 + 30 6 -4 0  + 7 + 93 J[ x 2 x + 2 + 2  
KILLEEN (pop. 7,045) Postal receipts --------------$  21,258  + 49  -28  LUBBOCK  (pop. 96,095) r  
Value of building permits 0 --------------$  191,932  +1210  -83  Retail sales ---------------­-----------­ -17  -11  
Bank debits (thousands) --------$ End-of-month deposits (thousands) *--$ 6,253 9,649  + 52 -8  + 20 -3  Automotive stores ---------------­Department and apparel stores____________  -81 -4  -23 7  
Annual  rate of deposit turnover__________  7.7  +  57  + 24  Furniture and honsehold  
appliance stores ---------··-------······  -29  + 3  
LAMESA  (pop. 10,704)  General merchandise stores ----·--­-----­Lumber, building material,  4  5  
Postal receipts  -----------------­------$  6,629  -16  - 1  and hardware stores -------------------­-- 4  + 17  
value of building permits n ---------­---$ Bank debits (thousands) -------------$  10,300 6,238  +415 -6  +194 8  Postal receipts --­-­------­----·--­$ 79,510 Value of building permitsll ________________$ 2,095,928  + 7 + 77  -4 + 20  
~d-of-month deposits (thousands) *---S Annual rate of deposit turnover______  10,354 7.1  -18 + 13  8 7  Bank debits (thousands) -----------­$ 91,572 End-of-month deposits (thousands) f___$ 79,859  4  8 1  
Annual  rate  of deposit  turnover_______  13-7  6  
LAMPASAS (pop. 4,869) Retail sales• ---­------------------------­Automotive stores• --------------­-----­ 4 + 8  + 22 + 87  Employment ------------------­-Manufacturing employment -----­Percent of labor force unemployed_ ___  39,700 3,910 6.7  + 2 + 6 + 78  x 5 3  
Department and apparel stores__________  x  -17  
Food stores• ------­----------------­--­Lumber, building material, and hardware stores• ---­------­---·----· Postal receipts -----------­------­----­$ Value of building permitall --------------$ Bank debits (thousands) _________$ End-of-month deposits (thousands) t-$ 3,953 89,600 4,598 6,426  + 12 -41 + 42 +15000 + 10 -5  + 4 + 85 + 30 +167 6 + 2  LUFKIN (pop. 15,135) Postal receipts -----------------------­$ Value of building permitsll -----------$ Bank debits (thousands) -----------$ End-of-month deposits (thousands) t­--­S Annual rate of deposit turnover________ 13,572 106,600 13,631 23,490 7.8  -8 + 63 -17 + 13 -23  + 18 + 28 -17 + 11 -19  
Annual rate of deposit turnover________  8. 7  +14  7  
MARLIN  (pop. 7,099)  
LAREDO (pop. 59,350)r Postal receipts ---------------------------$· 24,071 Value of building permitaD _____________$ 64,150  -6 -39  + 2 +118  P ostal receipts -------------------$ Value of building permits ll ----------------$ Bank debits (thousands) ----------$  5,163 13,325 2,603  + 2 -44 3  -12 +426 -11  
Bank debits  (thousands)  ___________$  18,878  7  8  End-of-month deposits  (thousands)t_
_$ 4,077  2  
End-of-month  deposits  (thousands) t---S  18,903  x  + 4  Annual  rate  or deposit turnover_________  7.6  - 8  
Annual rate of deposit turnover____________  12.2  4  -8  
Tourists entering Mexico ----­----------­Tourist cars entering Mexico --------­ 7,972 2,959  -12 + 2  + 35 + 30  MARSHALL  (pop. 22,327)  
Department a nd apparel store sales______  -10  -17  
LEVELLAND  (pop. 8,264)  Postal receipts ------------­----------------­$ Value of building permitsi _______________$ 15,440 196,831  -16 + 90  -9 +114  
Postal receipts ----·-··-------------------------$ 5,085 Value of building permitsll -----­--­-----------$ 92,425 Bank debits (thousands) ___________$ 6,708 End-of-month deposits (thousands)t__
_$ 8,689  -2 + 81 -4 + 1  -17 -17 6  Bank debits (thousands) ----------­----------$ E nd-of-month deposits (thousands ) t __$ Annual rate of deposit turnover_.____ 12,320 19,728 7.4  9 2 8  5 4  
Annual rate of deposit turnover___________  7.8  -11  0  
MERCEDES  (pop.10,081)  
LLANO (pop. 2,954) Postal receipts ----------­-------­---$ Value of building permits U ____________$ Bank debits (thousands) --­----------$ End-of-month deposits (thousands)t__$ 1,943 15,000 2,907 3,595  + 24 + 15 + 24 + 3  + 21 + 400 + 29 + 3  Postal r eceipts ------------------------------------$ v alue of building permits n --------------------$ Bank debits (thousands ) ----­------------­$ E nd-of-month deposits (thousandsH---$ Ann ual r ate of deposit tur nover____ 4,406 3,250 6,998 3,193 19.5  x + 1150 + 14 -47 + 56  + 11 -81 + 26 -41 + 57  
Annual  rate of deposit turnover_______  9.9  + 19  + 24  
F or explanation of symbols, see page 23.  

TEXAS BUSINESS REVIEW 

LOCAL BUSINESS CONDITIONS 

Percent change Percent change 
City and Item  May 1954  May 1954 from May 1953  May 1954 from Apr 1954  City and item  May 1954  May 1954 from May 1953  May 1954 from Apr 1954  
Postal  MIDLAND {pop. 34,378)r receipts ____________________$ 43,877  +14  +  2  PORT ARTHUR {pop. 82,150)u Retail sales• ---------------------·----­+ 6  + 7  
Value of building permitsH ____________$ 640,839 Bank debits (thousands) _ _ ____$ 47,494 End-of-month deposits (thousands )+--$ 69,050 Annual rate of deposit turnover _______ 8.3  + 82 -7 + 14 -17  -32 7 x 7  Automotive stores* ---·.-­-------­----­------­Department and apparel stores_______ E ating and drinking places• ---------­F ood stores• ----------------------­Furniture and household  + 15 + 3 -38 + 3  + 18 -12 +  
MONAHANS {pop. 6,311) P ostal receipts ------­-----$ 4,729 Bank debits (thousands) -------$ 6,196 End-of-month deposits (thousands )+­$ 6,410 Annual rate of deposit turnover____ 11.3  + 13 + 4 + 11 -4  x 1 5 + 3  appliance stores* -----------------­---­Lumber, building material, and hardware stores• --------------­P ostal receipts --------------·--$ Value of building permitsll ___________$ Bank debits (thousands) ________$ 34,026 298,779 44,847  2 + 8 1 + 39 2  + + + 2 + 38 x  
NACOGDOCHES {pop.12,327) P ostal receipts -------­---------$ 8,066 Value of building permitsll __________$ 143,050 Bank debits (thousands) -------··---·-$ 9,079 + 1 + 3600 + 2  -12 + 44 + 14  End-of-month deposits (thousands)+­$ Annual rate of deposit turnover__________ Employment (area) -----------------·­Manufacturing employment (area ) ____ Percent of labor force unemployed 38,034 13.8 78,200 26,400  +  8  '+ +  x  
End-of-month deposits (thousands)+­$ 14,631 Annual rate of deposit turnover_______ 7.5 NAVASOTA (pop. 5,188) Retail sales• ----­---­--­Food stores• ----------·--­Postal receipts ----------$ 8,548 Value of building permitsll _____$ 3,880 2 + 6 -3 -6 -13 -80 NEW BRAUNFELS (pop. 12,210) P ostal receipts ---­--.$ 11,235 + 13 Value of building permits! ------·$ 93,545 + 17 Bank debits (thousands) ________ $ 6,668 -19 End-of-month deposits (thousands)+--$ 9,447 + 15  x + 17 ++ 4 + 3 -78 + 3 -10 1 8  (area ) ·---------··---------··--·-··-------· 6.6 RAYMONDVILLE {pop. 9,136) P ostal receipts ---·--·-­--··-----$ 4,018 Value of building permitsll -----·----$ 7,850 Bank debits (thousands) -··-------$ 3.667 End-of-month deposits (thousands) f __ $ 6,950 Annual rate of deposit turnover___ 6.2 ROCKDALE (pop. 4,550)r P ostal receipts --------·------·---$ 3,802 Value of building permitsU ------·--­-$ 74,200 Bank debits (thousands) ______$ 8,552 End-of-month deposits (thousands)+--­-$ 3,476 Annual rate of deposit turnover_ __ 11.0  + 82 -11 -16 + 2 + 9 + 12 -15 + 15 + 7 -7  -28 +190 + 1 + -24 -61 -15 . ­18  
Annual date of deposit turnover______ ODESSA {pop. 29,495) Department and apparel store sales___  8.3  -- 23 2  0 -11  SAN ANGELO {pop. 52,093) Retail sales ---­-·-···-··----------------··-­Department and apparel stores______ Postal receipts -------·------------------·-·$ 52,084  + 12 + 11 + 20  + 3  
Postal  receipts  ------------­-$ 35,489  + 9  + 8  Value of building permits !  -···-------$  390,998  -86  -83  
Value of building permitsU -----$ 2,367,796  + 167  + 96  Bank  debits  (thousands)  ______$  36,786  + 1  8  
Bank debits  (thousands )  _  --$  35,868  + 1  + 8  E'nd-of-month  deposits  (thousands);_ $ 42,400  7  x  
End-of-month  deposits  (thousands)+--$  31,698  4  2  Annual  rate  of deposit  turnover___  10.4  + 7  
Annual  rate  of deposit  turnover.________  18.4  + 8  +  Employment -------­-­----·-·  22,000  + 3  x  
ORANGE {pop. 21,174) P ostal receipts -----------.$ Value of building permitsll ----··--·----$ Bank debits (thousands) ---------·--·$ End-of-month deposits (thousands )+---$ Annual rate of deposit turnover__________ 14,825 296,867 17,734 24,188 8.9  + 19 + 64 + 6 + 2 + 8  -1 + 16 9 + 2 8  Manufacturing employment ------­Percent of labor force unemployed_ _ 2,700 + 25 5.0 + 11 SAN ANTONIO {pop. 449,521)u Retail sales• ------·--·------·-----­----­-­Apparel stores• --·--·-----··--·--··­-·-· Automotive stores• ---------­------­--------­Department storest ---------·--·-·-----­4 -12  + x -13 + 8 x  
PALESTINE {pop. 15,063)r Postal receipts ___________ ____$ 8,551 Value of building permitsR --------·-·$ 82,750 Bank debits (thousands) _________ $ 5,511  -15 -36 + 11  -13 -52 8  Drug stores• ------------­-------------­E ating and drinking places• --·--··-·­Filling stations• ------·--------------­Food stores• -·---·--------­-------··----····­Furniture and household  x -11 5 -9  + + +  
End-of-month deposits Annual rate of deposit  (thousands) +-.-$ turnover______  12,661 5.3  +  x 11  +  9  appliance stores• -----------------­General merchandise stores• ---------·­ -18 5  + 10 + 1  
Lumber, building material,  
PARIS {pop. 21,643) Department and apparel store sales______  -16  -16  and hardware stores• --------------­-­Postal receipts ·-----·----­----$  495,352  +  
P ostal receipts ------------­-­---$ Value of buiiding permitsft _____$  13,293 146,462  -1 +430  8 8  Value of building permitsll -------­--$ 8,482,816 Bank debits (thousands) ------------$ 381,046  + 4 3  -21  
Bank debits (thousands) -----------$ End-of-month deposits (thousands)+---­$ 11,082 13,975  3 + 1  7 + 1  End-of-month deposits (thousands)+---$ Annual rate of deposit turnover_______  806,308 14.9  8 + 1  x 4  
Annual  rate  of deposit turnover____ _  9.5  +  3  7  Employment ---·-­·----­---­----­--­-­Manufacturing employment -----­ 175,200 19,960  6 4  x + 2  
PLAINVIEW {pop. 14,044) Retail sales -----··-----·--·-------­Department and apparel stores__ P ostal receipts ___________$ 11,815  +  3 8 3  +  6 x 5  Percent of labor force unemployed___ 7.0 SAN MARCOS (pop. 9,980) P ostal receipts --------------­--$ 9,901 Value of building permits! --·------$ 102,862  +100 + 4 6  -11 +14 + 22  
Value of building permitsl  _____$  147,500  -11  + 8  Bank  debits  (thousands)  _______  $ 4,656  2  2  
Bank debits  (thousands )  ------$  12,972  7  9  End-of-month  deposits  (thousands)+--$  8,074  + 4  
End-of-month  deposits  (thousands)+--$  21,200  +  4  Annual  rate of deposit turnover______  6.8  4  
Annual  rate of  deposit turnover ___  7.2  4  

For explanation of symbols, see page 23. 

JULY 1954 



LOCAL BUSINESS 	CONDITIONS 

Percent change 	Percent change 
May 1964 May 1964 May 1964 May 196• May from from 1'1Iay from from City and item 1964 May 1953 Apr 1954 City and item 1964 May 1963 Apr 1964 
-------------------... ---·-­
SEGUIN (pop. 14,000)r 	TEXAS CITY (pop. 23,000)r 
Postal receipts --------------------$ 8,439 + 12 -6 	Department and apparel store sales____ + 17 -12 Postal Receipts ________________$
Value of building permitsn ---------------$ 166,310 +880 +170 12,860 -4 1 Bank debits (thouaands) -------------$ 6,386 + 4 6 Value of building permits I --------$ 797,914 + 194 + 6 
______$

End-of-month deposits (thousands) i -$ 16,594 + 10 + 2 Bank debits (thouaands) 25,796 5 Annual rate of deposit turnover___ 4.7 2 4 End-of-month deposits (thousands) t -$ 25,876 4 6 Annual rate of deposit turnover___ 11.6 6 6
SHERMAN (pop. 20,150) 

Employment (area ) 44,250 9 2 Retail sales ---------------------4 + 8 
Manufacturing employment (area) ·-11,060 6 x 
Department and apparel stores........... . + 6 -12 

Percent of labor force unemployedFurniture and household 

(area) 5.9 + 69 0 appliance stores -------------------------­-16 + 8 Lumber, building material~ 
VICTORIA (pop.16,126)
and hardware stores ---------------------­+ 42 + 18 

x 
Postal receipts -----------------------------$ 23,556 + 14 + 2 

Retail sales* ---------····---------­+ 1 
Automotive stores• ------------------­+ 3 + 3 

Value of building permitsll ·················--$" 166,570 +104 + 36 Eating and drinking places• ------------­-15 + 18 Bank debits (thousands) ----------------$" 24,419 + 13 -10 Eating and drinking places -------------­-16 + 5End-of-month deposits (thousands)t._.$ 16,163 + 14 + 6 6
Filling stations• -------------------	+ 11

Annual rate of deposit turnover______ 18.5 2 -11
+ F ood stores• -------------------------+ 2 SNYDER (pop. 14,lll)r Furniture and household Postal receipta ---------------------$ 8,350 + 5 -8 appliance stores• ---------------­+ + Value of building permits U __________ _____ $ 85,900 + 23 +218 General merchandise stores• -----------­-10 
Bank debits (thouaands) ________$ 13,168 + 84 + 1 Lumber. building material, End-of-month deposits (thousands) L .. $ 12,866 + 42 + 1 and hardware stores• --------------­3 Annual rate of deposit turnover___ 12.4 -7 + 2 Postal receipts --------------------$ 20,120 + 4 
Air express shipments ----------------65

SWEETWATER (pop. 13,619) Postal receipts ---------------------$ 10,036 -30 -45 WACO (pop. 92,834)u Value of building permitsn -----------------$ 85,650 -25 -68 -5 -3
Retail sales ---------------------­

Bank debits (thousands) ---------------$ 8,099 + 8 + 2 	10 -12
Apparel stores ---------·---------------··· ­End-of-month deposits (thousands) $___$ 9,557 -5 8 Department storest ------------------------­+ 25 + 3 Annual rste of deposit turnover____ 10.1 + 12 + 3 

Furniture and household TAYLOR (pop. 9,071) appliance stores -------------------------­+ 25 + 13 Postal receipts ---------------------------$ 6,197 x -10 Postal receipts ---------------------------$ 103,882 + 4 -9 Value of building permitsO ____________ $ 121,815 44 21 Value of building permitsII ---------------$ 836,921 -4 -18 Bank debits (thousands ) _________$
Bank debits (thousands) _____________$ 9,036 4 5 73,193 + 12 2 End-of-month deposits (thousands) L .. $ 14,264 + 3 
End-of-month deposits (thousandsli--$ 61,217 + 3 Annual rate of deposit turnover_________ 14.3 8 1

Annual rste of depoait turnover___ 7.6 6 3 + Employment -----------------44,000 + 6 + 2TEMPLE (pop. 25,467) Manufacturing employment ----------­8,230 + 20 + 1 
Retail sales --------------------------­+ 27 + 18 Percent of labor force unemployed___ 6.4 -12 4 Apparel stores -------------·--·---------···· 9 -22 Department and apparel stores........... . 9 -22 WAXAHACIDE (pop.11,204)Furniture and houaehold Postal receipts ___________$" 8,606 -9 -12 
appliance stores -------------------------­+ + 9 Value of building permitsO --------------$ 325,100 +470 + 21 Lumber, building material, Bank debits (thousands) ------------$ 3,785 + 18 6 
and hardware stores ·················-······· + 82 + 31 End-of-month deposits (thouaands ) t .-.$ 8,906 + 30 2 Postal receipts ----····--------------···········---$ 24,179 + 1 -7 Annual rate of deposit turnover_______ 11.5 3 Value of building permitsll -----·-····------$ 167,211 + 195 -20 Bank debits (thouaands) -----------------$· 15,363 x 3 WICIDTA FALLS (pop. 90,676)r End-of-month deposits (thousands) L ..$ 23,808 + 12 + Retail sales -----------------------------14 + Annual rate of deposit turnover_____ _ 7.8 -8 5 Department and apparel store•--------+ + 4 
Lumber, building material,
TEXARKANA (pop. 40,628) § 
and hardware stores ------------------------­7 4 

Retail sales ---------·---------------·------------------19 + ! 
P ostal receipts --------------------$ 77,878 + 3 
Automotive stores -----------------19 + 14 
Value of building permitsn ---------$ 606,082 -39 -43Department and apparel stores_________ -14 -12 
Bank debits (thouaands) ------------$ 78,804 1
Furniture and houaehold End-of-month depoaits (thousands) L .. $ 98,108 + 4 1 
appliance stores ----------------------------­-34 + 25 

Annual rate of deposit turnover__________ 9.6 4 4 
Postal receipts ---·-···---------------------------$ 3,911 -17 -26 

Employment -------------------------------34,600 x Value of building permitsll ········--------·-·$ 68,130 -36 -27 

Manufacturing employment --------------3,320 -14 x 

Bank debits (thousands -------------------··$ 82,669 -17 -5 	Percent of labor force unemployed________ _ 5.6 + 24 7
End-of-month deposits (thousands) L -$ 17,715 -8 x Annual rate of depoait turnover__________ 
10.3 -5 -11 xChange is less than one-half of one percent. Employment ---·-··--·----------------------33,960 1 *Preliminary. 
Manufacturing employment ----·------­5,635 -57 4 tReported by the Federal Reserve Board of Dallas. Percent of labor force unemployed__ 
12.8 	+230 2 tExcludes depoaits to credit of banks. nFederal contracts are not included.
TYLER (pop. 38,968) 
UReported by Bureau of Buainess and Economic Research, University

Postal receipts -----------------$ 57,215 -7 -20 Value of building permitsU -----------$ 600,123 -67 -13 
of Houston. §Fiirures include Texarkana, Arkansas (pop. 15,875) and Texarkana,

Bank debits (thouaands) --------$ 60,284 + 11 + 7 
End-of-month deposits (thousands)$._$ 57,612 8 2 Texas (pop. 24.753) . 
Annual rate of deposit turnover______ _ + + rRevised for use by Texas Highway Department.

12.7 5 5
+ + 
u1950 Urbanized Census. 

BAROMETERS OF TEXAS BUSINESS 

Year-t<Mlate AverageMay Apr Mar avera1te month 1954 1954 1954 1954 1953 

GENERAL BUSINESS ACTIVITY  
tlndex of T exas Business Activity (100.0) ........-----------·······---------­-··-­ 141*  144*  141  141  142  
Index of bank debits-----·-­····--­····--· ······--·--··-·············· ········--·-····--····----·--­---·---·-········  175  175  179  174  169  
Index of bank debits in the United States........ .................. ····-················--·······--···  155  159  163  158  149  
Income payments to individuals in the United States (billions-seasonally  
adjusted at annual rate) ···--·-··­····--·······--···----------·-·····--·-···--­···---··--·----·-----·· ······ Index of wholesale prices in the United States (unadjusted) ....................... .. .. .  U0.9  $ 282.0 111.0  s  282.9 U0.5  $ 282.9 U0.8  $ 284.5 llO.l  
Index of consumers' prices in the United States (unadjusted) ····--·------··········-·  ll5.0  114.6  114.8  ll4.9  ll4.4  
iindex of consumers' prices in Houston (unadjusted) ···--·-···---·······-···--··············· Index of postal receipts.......................................................................................... .  ll6.7 165*  173  174  ll6.8 166  ll6.8 166  
tlndex of miscellaneous freight carloadings in the Southwestern District  
(10.0) ········---····-··-··· ·················----····---···················--·---·----·--·-······--·--------·--·-·-·-­---­Business corporation charters issued (number l --·····-·-··············---·----·········-··---·-· Business failures (number) ·····-··--········ ·······--···············--· -················--·-···············--­Index of ordinary life insurance sales (adjusted for price changes) ................  110 300* 26 159  90 348 25 174  90 359 21 175  93 326 20 166  98 305 15 164  
Index of ordinary life insurance sales....................... ........ .. .......·-··-·------··------·-----·­· Index of ordinary life insurance sales in the West South Central states...........  183 180  199 196  201 199  191 184  188 179  
Index of ordinary life insurance sales in the United States.. ............................. .  164  167  176  163  160  
TRADE  
tlndex of total retail sales (adjusted for price changes, 51.0) ·······-·--···-··············  134*  138  133  134  141  
Index of total retail sales........------------··--··········· ·-----···--··--········----·····­-----­---·------­--·-·  149  154  148  150  158  
Durable-goods stores....-----··-­---­----········--· ····--····----··--···----­······-·---·------·--·-····-----­Nondurable-goods stores..·---·---·-------·--···--·--·-·--------------·---­---­-------­--··­----­--­------­Ratio of credit sales to net sales in department and apparel stores....................  161 143 64.4  162 149 65.1  160 142 63.2  159 145 64.2  165 154 63.4  
Ratio of collections to outstandings in department and apparel stores.............  43.3  37.3  40.4  40.2  39.5  
PRODUCTION  
tlndex of industrial electric power consumption (14.6) ········--······-····· ··--···--·-·---­ 212  214  209  213  195  
tlndex of crude runs to stills (3.9) _···­--·----­-··----------­-------------------···---­-·--­----------------·  130  135  131  130  128  
Index of wheat grindings.......----­--------··-------·---·-····--·---·--­-·-------­-------­---­--------·-­----·­ 60  65  62  64  
lndex of dairy products manufactured·­····--··--·­··---·-··---······­--··---­---------·---­·-------­--· Index of cottonseed crushed.......·--··-­····----···------·---···----· ·----­-·---·····------­-------­---------·  87 302  107 168  98 184  79 127  
Index of southern pine production (unadjusted, 1935-39=100) ......................  120  128  120  124  
tlndex of urban building permits (adjusted for price changes, 9.4) ..................  121•  120*  129  120  lll  
Index of urban building permits.. ·--······---······--··---·­-----················­--· --­-··---·-------------· tlndex of crude petroleum production (8.1 l ­-···--·­-------------·-········--·-·--·-···--··-·---··-­­ 159* 120  156* 128  168 128  156 122  140 124  
lndex of gasoline consumption....--------·-----·­····· ·---····-----­----------·-----­-­---·----··---­--···-­tlndex of total electric power consumption (3.0) ···---·-········--··-----··­--­------------·­--··­Index of industrial production in the United States.......... ...................................  206 125*  125 212 123*  123 206 123*  136 205 124  179 206 134  
Index of cement production.. ........................ .................................... .....................  158  146  146  140  
Index of cement shipments.............................................................. ........................  157  153  154  140  
Construction contracts awarded (thousands) --------··----····----···········--····--········--···  Sll2,355  $115,732  $103,626  $101,030  $ 98,397  
AGRICULTURE  
Index of prices-received by farmers (unadjusted, 1909-14=100) ....................  272  270  271  270  273  
Index of prices paid by farmers in the United States (parity index­ 
ParYt~a~~~~-~-~-'. . ~~-~~-l~-~-~~-~-:::·.:·_::·_-_:·.·.::::·. :·.-_::::·_::::::::::·.·_:::::::::·.·.:::·.-.:·.:::::::::::·_::::·_-_:::::  284 96  283 95  283 96  283 95  279 98  
Index of farm cash income (unadjusted) ---·----­-----------­---------­·­--·---·-··-----·-·-----­-­--­Index of prices received by farmers-livestock (unadjusted, 1909-14=100).  67 297  65 301  63 300  68 302  95 298  
Index of prices received by farmers-all crops (unadjusted, 1909-14=100) ..  254  247  250  246  254  
FINANCE  
Loans, reporting member banks in the Dallas district (millions) ········­-··--·------·  s 1,910  s  1,906  s 1,902  $ 1,883  $ 1,793  
Loans and investments, reporting member banks in the Dallas district (millions ) ··---­---.. ···----­... ____ .........-··---­___ _____ __ _..... .... ·-·---··----. --·­....... ----·--·-·--··---·----­ s 3,362  s 3,340  s 3,307  s 3,341  $ 3,178  
Demand deposits adjusted, reporting member banks in the Dallas district (mi1lions ) __ ... __ ...................__ __ ................._ 
.....__ .··--···---······---------­--------­-----·------··­Bank debits in 20 cities (millions) ............---· ·----····--·····--·····----·------··-------·---------­--­Revenue receipts of the State Comptroller (thousands) ····­-··-­-·--··--·······--· ······ --­Federal Internal Revenue collections (thousands)···-·-··········-·----·-­···­-·· ·········----·  s 2,504 s 5,509 s 76,409 $169,693  s 2,502 s 5,574 s 76,789 $150,988  s 2,431 s 5,967 s 75,593 $319,823  $ 2,487 s 5,609 s 67,429 $231,214  $ 2,481 $ 5,570 $ 65,583 $183,278  
LABOR  
Total nonagricultural employment (thousands) ......................................... ........ Total manufacturing employment (thousands) .......... ................................... Durable-goods employment (thousands) ···-·----·----------------··-­-----·-···-----­-· Nondurable-goods employment (thousands) ·········--·------···­··--········· ·· ···­ 2,224.0* 421.5* 197.5* 224.0*  2,220.6 421.7 198.7 223.0  2,209.5 423.3 198.6 224.7  2,215.7 423.6 198.9 224.7  2,242.0 437.8 209.6 228.2  

All figures are for Texas unless otherwise indicated. All indexes are based on the average months for 1947-49, except where indicated and annual 
indexes, and are adjusted for seasonal variation. 

Manufacturing emploYment estimates have been adjusted for first quarter 1953 benchmarks. 
•Preliminary. 

tThe index of business activity le a weighted average of the indexes indicated by a dagger ( t). The weight given each index in computing the 
composite is given in parentheses. 
Undex computed for February, May, August, and November only.