TEXAS BUSINESS REVIEW 

A Monthly Summary of the Business and the Economic Conditions in Texas 
BUREAU OF BUSINESS RESEARCH : THE UNIVERSITY OF TEXAS 
STATE AND LOCAL DEBT IN TEXAS : A PROFILE by Lynn F. Anderson I THE PROCESS OF CAPITAL 
BUOOETING by Richard L. Norgaard I THE BUSINESS SITUATION IN TEXAS by Francis B. May 


TEXAS BUSINESS REVIEW VOL. XXXVII, NO. 1 JANUARY 1963 
Editor: Stanley A. Arbingast I Associate Editor: Francis B. May / Managing Editor: James J. Kelly 
CONTENTS 

1: THE BUSINESS SITUATION IN TEXAS by Francis B. May 
4: STATE AND LOCAL DEBT IN TEXAS: A PROFILE by Lynn 
F. Anderson 

7: PROCESS OF CAPITAL BUDGETING by Richard L. Norgaard 
11 : LOCAL BUSINESS CONDITIONS 
BUSINESS RESEARCH COUNCIL 

John Arch White, Dean of the College of Business Admin­istration (ex officio); John R. Stockton; Jim G. Ashburne, Jessamon Dawe, Stephen L. McDonald, E. W. Mumma, David C. Townsend, and W. T. Tucker. 
COOPERATING FACULTY 

Cha,rles T. Clark: Associate Professor of Business Sta­
tistics Robert H. Ryan: Special Instructor in Business Commu­nications 
Kornelis J. Walraven: Assistant Professor of Finance 
BUREAU OF BUSINESS RESEARCH 
Director: John R. Stockton Associate Director and Resourcea SpeciC£liat: Stanley A. Arbingast Aasiatant to the Director: Florence Escott Statiatician: Francis B. May Adminiatrative Assiatant: Juanita Hammons Research Associate: Charles 0. Bettinger, Alfred G. Dale, Marie Fletcher, James J. Kelly, Ida M. Lambeth, Robert 
M. Lockwood, Elizabeth R. Turpin, Frances Vick Reaearch Aaaiatant: Andre Bouchard, Theodore ten Broeke Administrative Secretary: Margaret F. Smith Senior Se<Yretary: Elsa Acker S enior Clerk Typist: Lind's Beard, Claire Howard, Elnora Mixson, Margaret Paulissen Cartographer: Tim M. Duffee, Ellen Wray Library Assistant: Merle Danz Statiatical Technician: Eva A. Arias Statiatical Assistant: Mildred Anderson, John S. Calhoun, Carol Laws Clerical Assiatant: Sara Connally, Mike Pettit Off set Press Operator: Robert Dorsett, Daniel P. Rosas 

Published monthly by the Bureau of Business Research, College of Business Administration, The University of Texas, Austin 12. Second-clas• postai:re paid at Austin, Texas. Content of this publication is not copyrighted and may be reproduced freely. Acknowledgment of source wlll be appreciated. Subscription, $3.00 a year ; individual copies, 25 cents. 

THE SEASONALLY ADJUSTED INDEX OF TEXAS BUSINESS activity rose 2% in November to a value of 131.3% of the 1957-59 monthly average. At this level the index was 5% above November of last year. It was at its third highest value in history, being exceeded only by the August value of 135.4 and the January value of 132.9. 
This was the second consecutive advance in the index after its sharp drop in September. It was induced by rises in a substantial number of barometers of Texas business. For the first eleven months the index averaged 129.5% compared with 117.6% for the like 1961 period. This was an increase in the average of 10.lo/o. Every month of this year has seen a value of the index recorded that exceeded the corresponding 1961 month. 
Miscellaneous freight carloadings rose 4% after sea­sonal adjustment. At 81.1 % of the 1957-59 base the index was 5% above November 1961. The index averaged 16.6% below 1961 during the first eleven months of this year. While the current improvement is welcome, the rails have much lost ground to recover. Other transportation media have made heavy inroads into their carriage of the mnnu­factured products which comprise much of the "miscel­laneous" category. The rails must be given an opportunity to earn revenues that will enable them to make needed capital investment. Current estimates indicate that l.>y the year's end they will have spent only $830.0 million on capital investment. In 1957 they spent $1.4 billion. 
Seasonally adjusted production of crude petroleum in November remained at the October level of 91.8% of 1957-59 average monthly production. At this level the in­dex was equal to its November 1961 value. Allowable pro­duction in November was restricted to eight days. De­cember production was set at the same figure for the eleventh consecutive month, the longest period of such tight restriction in the post-World War II era. 
In an effort to achieve greater flexibility in setting pro­duction quotas the Railroad Commission has shifted from a daily allowable to a percentage basis. The January al­lowable ha3 been set at 26% of the maximum output per­mitted for prorated wells. Strippers, water-floods, and other nonprorated production remains unaffected. The amount of such exempted production was 1,226,315 barrels a day as of December 15. 
During the first eleven months of this year the index of crude production averaged 92.3% of 1957-59 compared with an average of 92.0% for the comparable 1961 period. 


TEXAS BUSINESS ACTIVITY 
Index-Adjusted for seasonal variation-1957-1959=100 

JANUARY 1963 Total 1962 production will be almost the same as in 1~61 which, in turn, was almost identical with total production in 1960. 
Crude oil runs to stills dropped 1 % in November after seasonal adjustment. They were 10% above November 1961. For the first eleven months of the year, they averaged 5.3% above 1961. This increase in refinery runs at a time when crude production was virtually unchanged was possible because a certain amount of oil produced in neighboring states finds its way to Gulf Coast refineries. This is a natural feature of interstate trade and of the oil business. Much of the refining capacity of the nation is located on the Texas Gulf Coast, supplying jobs for thousands of Texas refinery employees. 
Seasonally adjusted total electric power consumption rose 2% in November to a level 17% above November of last year. For the first eleven months the index averaged 15.4% above the comparable period last year. 
Industrial power consumption rose 4% in November, after seasonal adjustment to a value of 132.5% of 1957-59. 
ESTIMATES OF TOTAL RETAIL SALES 
Percent change Nov Jan-Nov 1962 1962 Nov 1962 Nov 1962 Jan-Nov 1962 
from from from 
Classification (millions of dollars) Oct 1962 Nov 1961 Jan-Nov 1961 
TOTAL .........1,006.6 10,833.7 -3 + 4 + 8 

Durable goods• . 353.6 4,032.8 -10 + 9 + 19 
Nondurable goods 653.0 6,800.9 + 1 + + 3 
*Contains automotive stores, furniture stores, and lumber, building material, and hardware stores. 
The November value of the index was 6% above the same 
month last year. The first eleven months of the current 
year averaged lfi.9% above the comparable 1961 period. 
It is apparent that the rate of growth of industrial power 
consumption is keeping up with that of the total power 
consumption index. This, in turn, implies that the other 
two categories of power consumers, residential and com­
mercial, arc increasing their consumption at about the 
same rate as that for industrial users. 
Seasonally adjusted retail sales declined 2% in Novem­
ber due to a drop in sales of durable goods. They were 
4% above November of last year. 
Investment in chemical plants in the state continues, 
although at a somewhat reduced rate. Monsanto Chemical 
Company placed its Chocolate Bayou "chemical refinery" 
on stream recently. It will have an output of hydrocarbons 
of 2.5 billion pounds a year. 
It appear~ that l!JG:l will be a year of good business. 
Fears of a recession have subsided for lack of negative 
factors in the outlook. On the other hand, there is no 
expectation of a boom. "Business as usual" seems to be 
the watchword. 
Hetail Sales 
After rising 9% in October, the seasonally adjusted in­
dex of total retail sales declined 2% in November because 
of a fall in the volume of sales of durable goods. At 
11:l.8'/ of the average monthly volume of sales in the 
1957-59 base period, the index was 6% above its Septem­
ber value. Total sales for November were 4% above No­
vember 1961. Sales for the first eleven months of this 
year wer: 8'/< above the first eleven months of 1961. 
An estimate of total sales for the year based on results for the first eleven months places them at $12.05 billion. 
Seasonally adjusted sales of durable goods rose a spec­tacular 26% in October due almost entirely to a phenom­enal 50% increase in sales of automobiles. This unprece­dented rise was due in part to the unusually strong acceptance of the new models and in part to the Cuban crisis. International political tension generated by the Cuban situation revived memories of shortages of con­sumer durable goods during World War II. Automobiles were almost completely unobtainable then. Many heads of families undoubtedly decided to turn in the family con­veyance earlier than usual in order to have a brand-new vehicle with many years of useful life. Relaxation of the tension has caused a subsidence of these fears. It seems that a lot of November business was borrowed in October. The usual seasonal decline in sales of automotive stores in November is 1%. This November the decline was 10%. 
SELECTED BAROMETERS OF TEXAS BUSINESS (1957-59= 100) 
Percent change 
Nov 1962 Nov 1962 Nov Oct Nov from from Index 1962 1962 1961 Oct 1962 Nov 1961 
Texas business activity. ........131.3* 128.1 125.4 + 2 + 5 Miscellaneous freight carload­
ings in S.W. district. 81.1 77.8 77.5 + 4 + 6 Crude petroleum production . 91.8* 92.2r 92.1 •• •• Crude oil runs to stills . . . . . . . . . 110.3 111.7 99.9 + 10 Total electric power consumption 143.7* 141.0 122.4 + 2 + 17 Industrial power consumption . .. 132.5* 127.7 114.0 + + Bank debits ..............132.2 129.0 125.4 + + Ordinary life insurance sales. ... 136.5 129.5 126.l + + Total retail sales. . ..........113.8* 116.3r !09.4r -+ 
Durable-goods sales ....121.3* 131.7r 111.3r -+ 
Nondurable-goods sales .. 109.9* 108.4r 108.8r + 1 + I Urban building permits issued. .134.6 124.9 119.7 + 8 + 12 
Residential ..............130.0 118.4 115.0 + IO + IS 

Nonresidential 139.1 133.3 127.1 4 ~
+ + 
Adjusted for seasonal variation. 
*Preliminary. 
rRevised. 
••change is less than o_n_e-_h_a1_r_o_r_1...-.p_er_c_en_t_. -----------' 
Sales of motor vehicles dealers declined by the same 
amount. At this level November automobile sales were 
still 14% above November 1961. 
Sales of other categories of consumer durables con· tributed to the October-November decline of 8%. Sales of furniture and appliances combined dropped 5% in­stead of the usual 1 o/o. This drop was due entirely to a fall in sales of appliances. Furniture sales fell the usual seasonal drop of 1% for the month. Sales of lumber, building material, and hardware stores declined 13% in­stead of the usual November drop of 9o/o. 
Seasonally adjusted sales of nondurable goods rose 1.4% in November-not enough to offset the decline in sales of durables. They were 1% above the November 1961 level. For the first eleven months of the year sales of consumers' nondurables were 3% above the like 1961 period. 
Sales of apparel contributed to the improvement in 
nondurables' sales by rising 7% instead of falling the 
usual seasonal 1%. 
Drugstore sales held at the October level instead of 
dropping the usual 5% in November. They were 1% above 
November 1961. 
TEXAS BUSINESS REVIEW 

Sales of eating and drinking places fell less than sea­sonally, dropping 3% instead of the usual 6%. 
Gasoline and service station sales dropped more than seasonally, 7 % instead of the usual 1% . 
Department store sales showed a very good rise. 

Sales of "other" retail stores rose the usual seasonal 1o/o. This category includes florists, whose sales rose 7% ; nurseries, whose sales declined 34%; jewelry stores, whose sales rose 31 % ; and office, store and school supply dealers, whose sales fell 9%. 
Nationally, retail sales rose 2% in November after sea­sonal factors were taken into account. Nondurable goods' sales rose 3%. Durable goods' sales remained at the Oc­tober level. Sales of automobiles were unchanged from 
RETAIL SALES TRENDS BY KINDS OF BUSINESS Source: Bureau of Business Research in cooperation with the Bureau of the Census, U. S. Department of Commerce 
Percent change 
Normal seasonal• Actual 
Number of-­reporting Nov Nov 1962 Nov 1962 Jan-Nov 1962 establish-from from from from 

Kind of busineBB ments Oct Oct 1962 Nov 1961Jan-Nov1961 
DURABLE GOODS 
Automotive  storest  ... 259  -1  -10  +14  +24  
Furniture & household  
appliance  storest  . . ....146  -1  -5  -8  +  
Lumber, building material,  
and hardware  stores.  .248  -9  -18  -1  +  
NONDURABLE GOODS  
Apparel stores . . Drug stores . . . . .  . . 243 . . . . 165  -1 -6  + 7••  -1 +  + 1 + 2  
Eating and drinking  
places  . . . . .  97  -6  -8  + 3  + 2  
Food  stores  .. 408  -3  -s  + 2  +  
Gasoline and service  
stations  . .  ..  65  -1  -7  ••  +  
General merchandise  
storest  . ....... . . ... 237  + 2  +is  + 2  + 5  
Other retail  storest . . . . .. . 245  + 1  + 1  -1  + 3  

•Average seasonal change from preceding month to current month. 
••Change is leBB than one-half of 1 percent. 
tincludes kinds of busineBB other than classification listed. 


October's high rate after adjustment for seasonal varia­tion. Nationally, sales of consumer goods have been sustained by high levels of per capita personal income. There has been a slight tendency for gains in per capita personal income in Texas to lag behind the national average. This situation can be remedied by measures designed to in crease job opportunities, particularly skilled jobs. The advent of NASA and the award of defense contracts of great magnitude within the state should assist in reversing this trend, not immediately but in the years to come. 
Building Construction 
Total value of urban building permits issued in Texas, seasonally adjusted, rose 8% in November. After dropping rather sharply to 104.9% of the 1957-59 average monthly value in September, the index rose 19% in October. The additional 8% increase in November placed the index at a level just under its peak of 140.9% reached in June and at the third highest value in its history. The June high has been exceeded only once. That was in August 1961 when the index reached an all-time peak of 152.3%. It dropped to 95.9% the following month. The index this 
JANUARY 1963 year has been above the corresponding month of 1961 every month except August. 
The average value of the index for the first 11 months this year was 124.8% compared \\'ith u:i.oi;;, for the like 1961 period. This represented a 10.5% increase oYcr the first 11 months of 1961. 
Seasonally adjusted residential permits rose 10% in November. This is the second strong monthly increase, for the index rose 8% in October. At 130% of Hl57-59 the in­dex was 13% above November 1%1. This is the highest value of the index since it reached an all-time high of 135.4% in July 1958. During the intcn-ening years resi­dential permits have been as low as 79~( of the base value. This value was reached in December 1960. 
Permits for single-family dwellings for the first 11 months at $566.7 million were only 0.4<;(; abo,·e the like 1961 period. Permits for multiple-family dwellings were up 121% over the first 11 months of last year. Duplexes were up 19'/c ; three-and four-family apai1 men ts were up 65% and larger apartment buildings, up 133%. 
In appraising these figures, it is important to realize that $753.4 million of the total of $1.26 billion of permits issued for the first 11 months was for one-familv build­ings. This means that one-family homes accou;ted for 60% of the total. Multifamily dwellings accounted for $186.7 million in permits or 14% of the total. Large apartment buildings accounted for $175.0 million of the $186.7 million of permits for multiple-family dwellings. Permits for large apartment buildings for the first 11 months last year amounted to $75.2 million, less than half the 1962 total. 
Seasonally adjusted nonresidential permits rose 4% in November to 139.1% of 1957-59, a Yalue 9% above No" vember 1961. This was a second monthly rise in the value of nonresidential permits. Cumulative value of these per­mits for the first 11 months was 7% above the same pe­riod of 1961. 
Total value of nonresidential permits for the first 11 months was $507.3 million, or 40% of the total. 

For the year to November 30, increases in nonresi­dential permits over the first 11 months of last year were 9% for industrial buildings, 81 'le for office-bank buildings, 4% for educational buildings, and 15% for service sta­tions and repair garages. 
At $144.5 million, permits for alterations and repairs for the first 11 months were up 6% oYer 1961. Total Yalue of these permits was fairly evenly diYided between house­keeping dwellings and other priYate buildings. 
Of the $1.2 billion of permits issued for metropolitan areas, $969.2 million was the cumulati,·e Yalue of permits for the central cities. This is a fm1her illustration of the fact that, today, most of the population of the state lives in urban areas and most of the economic actiYity, mea;;­ured in dollar volume, takes place there. Hural area;; are important, but their relative position in populati"n and personal income earned is declining. An equilibrium po,i­tion will probably not be reached in the near future. 
Large amounts of building in the Hou;;:on area \\'ill re­sult from the NASA establishment there. One con;:ortium of builders plans a medium-~izecl city designed to service the center and its personnel. The continued high rate of population growth in Texas assures a continued demand 
for homes. 
3 

STATE AND LOCAL DEBT IN TEXAS: A PROFILE 

by Lynn F. Anderson 
Assistant Director, Institute of Public Affairs 
The University of Texas 
This article presents data available at the time. of publica­tion on vublic debt in Texas. In .a second arpicle 7J.lan.ned for the March issue the author will present his pro1ections of these figures fo; the remainder of the decade. 
AMONG MANY GROUPS OF PERSONS, FROM PROFESSIONAL economists to main street businessmen and average citi­zens, there is widespread knowledge of the fact that the United States government now has an outstanding debt of $800 billion. Much less well known is the fact that state and local governments in this country have an aggregate outstanding debt of $75 billion ($411 per capita) and that this debt is steadily increasing in size from year to year. Texas state and local governments, located as they are in one of the nation's largest and rapidly growing states, are active participants in this process, and currently they rank behind only California and New York in the aggre­gate volume of long-term bonds being issued. 
Viewed in historical perspective, the growth of borrow­ings by state and local governments is a concomitant of the nation's economic growth, population increase, and urbanization. Within this overall development for the coun­try as a whole, the forces behind a growing volume of mu­nicipal debt in Texas have been dramatic and sustained. The economy of the state has grown markedly within the past two decades and has become more diversified with the acldition of manufacturing industries and significant gov­ernment installations to an existing agricultural base of large proportions. Much of this economic growth has cen­tcrecl in, or clustered around, cities and has been pri­marily responsible for significant shifts of population within the state from rural to urban areas. Coupled with thn shift from farm to city has been an uninterrupted growth in the state's population, largely by natural in­crease rather than in-migration. A few figures tell the 
story vividly. 
In 1940 Texas had a total population of 6,414,824, less 
than half of which ( 45.4%) resided in urban places. By 
l!HJO the state's population had increased to 9,579,677, and 
7G'/,, of this population was located within urban areas. 
Thus, within the comparatively short span of two decades, 
Texas hacl been transformed from a rural to an urban 
state-at least so far as place of residence is concerned. 
Equally, if not more, significant is the fact that in 1960 
more than three-fifths (6:3.7%) of the state's total popu­
lation resided in twenty-one standard metropolitan areas, 
the largest number of such areas in any single state in 
the l:nited States. Two out of every five Texans now live 
in the state's four largest cities-Houston, Dallas, San An­
tonio, and Fort Worth-and provide a metropolitan con­
centration of people completely antithetical to the "wide 
open spaces" which characterize the state's geography and its popular image. 
As Texas has reoriented itself into a dynamic, indus­trial, and urban economy, the need and demand for fa­cilities and services in those functional areas which are the legal responsibilities of state and local governments have grown by leaps and bounds. At the state level, sig­nificant increases in spending have taken place for both capital outlay and operating costs for such functions as highways, education, and water resources. At the local level, numerous governmental jurisdictions have partici­pated in the rendition of a variety of public services and facilities, but municipal governments and independent school districts have been especially pressed by mounting needs in fast-growing urban areas. 
City governments have been faced with the costs of new subdivision development, new and improved streets, en­larged utility plants and distribution systems, hospitals, and airports, in addition to such expanded services as fire and police protection. Local school districts, and par­ticularly the independent school districts, as the local governmental units charged with administration of public education at the elementary and secondary levels, have had to increase both operating and capital outlays to meet the needs of rapidly rising school enrollments and to im­prove the quality of educational offerings. These dis­tricts receive substantial financial assistance from the state in the form of per capita and minimum foundation grants, but these are restricted to operating costs and do not, therefore, assist in meeting the districts' needs for school buildings and equipment. 
In addition to cities and school districts, special districts also have assumed a role of some importance in local government finance in recent years. These districts are local governmental jurisdictions designed to perform a single public function, such as water supply, drainage, or hospital service, which cannot be, or is not being, P.er­formed by general purpose units such as cities or counties. Among other powers, most of these districts have the power to borrow money and to impose taxes on property. During recent years a principal area of growth among special districts has been the increase in the number of various water districts in suburban areas adjacent to growing municipalities. These districts supply .water to residential or industrial consumers outside of city boun­daries during early development of the areas and are frequently absorbed by the city government when the area is subsequently annexed to the municipality. 

Texas Borrowing Patterns and Trends 
At the beginning of 1962 there were 3,328 units of government operating in the state of Texas. In addition to the state government, this number included 254 coun­ties, 866 municipalities, 1,474 school districts, and 733 local special districts. As these units of government have been confronted by the financial needs noted above, they have been required to raise tax rates or impose new taxes to meet increased operating costs. One tangible evidence of this at the state level is the 2% sales tax imposed by the legislature in 1961. At the local level, property tax rate increases or increased assessment levels have been widespread in most school districts and cities that have 
Table 1 

ESTIMATED OWNERSHIP OF STATE AND LOCAL 
SECURITIES BY INVESTOR CLASS 
June 30, 1961 

Investor class  Amount (billions)  P ercent of total  
Individuals  . . $28.3  39.5  
Commercial banks  18.8  26.2  
Insurance companies  .... . . ... .. . .  12.3  17.1  
State and local governments  
(trust and investment funds)  7.4  10.3  
Corporations (other than banks  
and insurance companies)  . . . . . . .  . .  2.2  3.1  
Others  2.7....... . ..... . . .  3.8  
Total  . . . . . . . . $71.7  100.0  

Source: Annual Report of the Secretary of the Treasury on the State of the Finances for the Fiscal Year Ended June 80, 1961, p. 625. 
experienced economic and population growth within the past decade. With additional amounts of current tax rev­enue being required for current operations, the only prac­tical alternative for the financing of capital outlays has been to resort to the money markets through the medium of long-term bonds. 
In line with national developments in the field of mu­nicipal finance, Texas governments have used both gen­eral obligation and revenue bonds to finance their capital requirements. General obligation bonds are debt instru­ments which are backed by the full faith and credit of the issuing government and are repaid from general property taxes, while revenue bonds must depend for their service entirely upon the net earnings of a self-supporting enterprise. One class of local governments in Texas, the water control and improvement districts, possesses the power to issue so-called combination bonds. These are instruments which are primarily revenue bonds serviced by enterprise earnings but are also backed by the taxing power in cases where earnings are insufficient to meet debt service requirements. For all of these classes of mu­nicipal bonds, the serial type of bond-where a portion of the principal becomes due and payable in each year the issue is outstanding-has almost completely displaced the older term or sinking fund type of bond which comes due on a single maturity date. 
Except for a small volume of negotiated sales involving 

JANUARY 1963 primarily revenue issues, municipal bonds in Texas are marketed on the basis of scaled bids to competing s\·rnli­cates of investment and commercial bankers. Biddin.g (\Il Texas municipal bond issues is usually brisk, and it i~ not uncommon to find four or more syndicates inYolving a total o~ 30 or more banks and innstment firms bidding on indi­vidual bond issues. The winning syndicate in am· bond sale' distributes the bonds purchased among its mc~1ber firms in accordance with prearranged agr~ements, and each firm in turn offers a portion of the bonds to the ultimate 
investors. 
Table 2 

STATE AND LOCAL BOND ISSUES IN TEXAS 
BY UNITS OF GOVERNME T 
January 1-ovember 19, 1962 


Percent  
Amount  Percent  of  
Type of governmental unit  issued 1962 (thousands)  of total 1962  fi ve-year total 1957-1961  
Cities and towns  
General obligation  bonds  ... $ 89,111  22.2  21.2  
Revenue  bonds  . . . .  79,276  19.7  18.6  
Total-cities and  towns  .. $168,387  41.9  39.8  
School and junior college  
districts  $115,973  28.9  29.4  
Special districts and authorities  50,736  12.6  9.5  
State agencies and colleges.  39,978  10.0  12.7  
Counties  . . . . . . . . .  24,994  6.2  7.5  
Road  districts  1,644  0.4  1.1  
Total  ... . . $401,712  100.0  100.0  

Source: Municipal Advisory Council of Texas. 
Since the income of municipal bonds is exempt from federal income taxes, these bonds are especially attractiYe to certain investors, such as indiYiduals in higher income tax brackets, commercial banks, and insurance companies. Data are not available on the O\\'nership of Texas munici­pal debt, but it is known that these securities are widely held both in and out of Texas, and there is no reason to believe that the pattern of ownership would differ significantly from the national figures exhibited in Table 
1. As shown in this table, more than 80'/o of outstanding municipal bonds are owned by incli\·iduals, commercial banks, and insurance companies. Although these are the latest published data, it should be noted that more recent data, when they become available, may show an increase in commercial bank holdings. 
Commercial banks, authorized to increase the rate paid on savings and time deposit accounts early in 19G2, found it necessary to increase the size and carning-s of their investment portfolios and have inwsted hea\·ily in munici­pal bonds during recent months to achie\·e this objecth·e. 
Since the conclusion of World \Var JI, state and local governments in Texas have issued more than $2.5 bil­lion in bonds. During the period from l!)SG through 1061 the annual volume of municipal bonds i;:suecl in the state increased from $327.1 million to $446.5 million, or 3i '.\: . This growth trend continued during the calendar year 
5 1962 1 and at the time of this writing it was likely that a new annual high in the vicinity of $450 million would be reached. For the period January 1 to November 19, 1962, the volume of bonds issued amounted to $401,712,000. Table 2 contains a breakdown of this amount by type of issuing agency and also compares the relative im?ortance of 1962 amounts with those for the four-year period from 1957 to 1961. 
From the data in Table 2, it is clearly evident that cities and towns are the largest issuers of long-term bonds, producing more than 40% of the total state-local volume. General obligation bonds, with 22.2% of the total amount issued, continue to exceed revenue bonds in im­portance, but the margin of difference is not e~tremely large. Based on a recent analysis by the Municipal Ad­visory Council of Texas of the purposes of bond issues during the 1959-1961 period, more than half of the annual value of general obligation bonds is regularly represented by issues for street improvements, including neces~ary rights-of-way. Second in importance are general obliga­tion bonds issued for water and sewer systems, and these are followed in order by public buildings of various kinds, airport improvements, and parks and swimming pools. In the revenue bond classification, bonds for waterworks systems occupy the number one position and account for approximately one-half of the new revenue bonds (ex­clusive of refunding issues). These are followed by rev­enue issues for sewer systems and electric light and power systems, each of which accounts for approximately one­fifth of the total annual volume of revenue issues. Of the remaining purposes for which revenue bonds are issued, only those issued to finance airport improvements have shown any significant increase in recent years. 
As indicated in Table 2, the second largest volume of current bond issues are those of school and college dis­tricts. Of the combined total of 28.9% issued to Novem­ber 19, 1962, only a small amount represented the issues of junior college districts; most of the bond issues in this category were for school buildings and related capi­tal outlays of independent school districts. Well behind the local school districts in their annual contribution to the volume of new bonds are the special districts and authorities and state agencies and colleges. In 1962 issues by special districts and authorities accounted for 
12.6% of the total volume to November 19, compared to an average of 9.5% for the five-year period from 1957 to 1961. Conversely, the $39.9 million issued by state agencies and colleges during the first ten and one-half months of 1962 accounted for only 10% of the total vol­ume compared to the 1957-1961 average of 12.7%. As will be indicated below, the state of Texas has followed a cautious borrowing policy for its noneducational func­tions. l\Ioreover, the volume of bonds issued by colleges and universities included in these data does not reflect their total borrowing, because a number of these institu­tions have availed themselves of low-interest housing loans from the Community Facilities Administration of the federal Housing and Home Finance Agency. 
Counties and road districts, the smallest issuers of municipal bonds at the present time, are of decreasing importance in the public debt of Texas. County govern­ments, being the least active financially of the major units of government, have remained static in many areas of the state and have had little, or no, need for new capital facilities. A number of counties have become debt free, and there is little prospect that they will change from this status in the near future. Road districts are political subdivisions in rural areas which exist for the sole purpose of financing roads. With the growth of the farm-to-market road program under the state highway system and the development and financing of roads on a countywide basis, these districts are fast disappearing, and the volume of debt issuance has been correspondingly reduced. 
As might be expected, there is a close correlation be­tween the amount of debt currently being issued by the various classes of governmental units in Texas and the relative share of the total outstanding debt attributable 
Table 3 
OUTSTANDING DEBT OF STATE AND LOCAL 
GOVERNMENTS IN TEXAS 
December 31, 1960 

Amount of debt Percent outstanding of 
Type of government (thousands) tots! 
Cities ...... . .... . .. . ......... . $1,434,900  41.6  
School districts  1,068,383  31.0  
State agencies and colleges  329,749  9.6  
Special districts and authorities . .  290,516  8.4  
Counties . . . . . . . . . . . . . . . . .  253,479  7.3  
Road districts . . . . . . . . . . . . . . . . .  51,296  1.5  
Junior college districts . . . . . . . . .  22,267  0.6  
Total  . .... . ........ .. .....$3,450,590  100.0  

Source: Municipal Advisory Council of Texas. 
to these units. The most recent detailed breakdown of the state's public debt is that prepared by the Municipal Ad­visory Council of Texas as of December 31, 1960, and pre­sented here in Table 3. It will be noted that, of the total outstanding debt of $3.45 billion at the end of 1960, cities and school districts had issued $2.5 million, or almost three-fourths of the total. Perhaps even more striking is the fact that the state government had issued less than 10% of this total debt, while local units of government as a group had issued more than 90%. This is by far the lowest ratio of state debt to total state-local debt of any of the states with comparable amounts of long-term debt outstanding. Based on U. S. Census Bureau data for state and local fiscal years ended in 1961, there were ten states which had an outstanding long-term debt of more than $2 billion: California, Illinois, Massachusetts, Michigan, New Jersey, New York, Ohio, Pennsylvania, Texas, and Washington. Of this group, in which Texas ranked fifth, the average ratio of state to combined state-local debt was 28.3%. Texas, with a ratio of 9.8%, was the lowest of the group and, together with Illinois, was. one of the two states below the 20% mark. This comparison reflects complex differences in the public financial structures. of the individual states in this group and at the same time 
. . . t" · sofar as future 
pomts up 1
important po icy ques ions m borrowing by governments in this state are ~on~e;ne~j Both of these matters are worthy of detailed md1VldU study and are, therefore, beyond the scope of this pres­entation. 

PROCESS OF CAPITAL BUDGETING 

by Richard L. Norgaard 
Assistant Professor of Finance, College of Business Administration 
The University of Texas 

RATIONING OF CAPITAL EXPENDITURES, WHICH IS AN outwardly complex but basically simple procedure, is the most important function in a firm's financial life. This rationing process is called capital budgeting. It is through the proper selection of potential investments that a firm succeeds or fails. On any given day the financial press reports the bad investments firms make which can be attributed directly to their failure to budget properly their capital expenditures. 
Often management of small and even large businesses fails to plan properly. They make an investment without all of the facts, or their assembly and evaluation of the facts available are faulty. Any business to be successful in the long run must plan carefully and execute its plan through systematic procedures. This is all that capital budgeting is in fact-an investment plan executed through systematic procedures. Businessmen who fail to use cap­ital budgeting will almost surely be victimized if they make important business decisions by "feel" or intuition. All of the pertinent problems, costs, revenues, and profits anticipated from any expenditure of capital can be deter­mined and evaluated by using the tools available in a sound capital budgeting program. 
The purpose of the capital budgeting program is to in­sure that the firm selects the best investments for its available funds from among those investment possibilities which are compatible with the firm's purpose, and this article attempts to outline the organization of a simple, but effective, capital budgeting program which could be applied by any firm. 
Organizing for effectiveness 
Although almost everyone agrees that capital budgeting is important and necessary, there is, nonetheless, a wide range of views about how to establish and use it. There is no "right way" to budget capital. The single most im­portant thing in any plan is that it be systematic. If it is systematic, consistent in evaluation, and true to its purpose, it will accomplish the desired ends. Systematizing the procedure has a secondary advantage. After a project has been approved and established, the results can be checked against the projections. Where there are differ­ences, the reasons for these differences can be determined and corrections taken in the system to prevent further deficiencies of this type, thus assuring better estimates in the future. 
Any systematic approach will involve the standard steps for decision-making. These are determination of the project, selection of alternatives, evaluation of these al­ternatives, and choice. 
Determination of the project-The determination of the b:st investment possibilities should be a part of the plan­nmg process of the firm. Thus the capital budgeting pro­gram should be based on the long-range objectives of the firm. For example, if diversification is an object of the firm, new investment proposals in different product lines would receive precedence over other investments. Firms which make spur-of-the-moment decisions must always be prepared to accept the failures that go with insufficient planning. Plans for the future are not properly stated in vague, general terms but in specific, clear terms which make implementation possible. The major implementation of a firm's long-range plans is accomplished through the capital budget. 
A firm must have a constant and sufficient quantity of new investment proposals. Employees must be on the outlook for new methods of cutting costs and for new investment opportunities. Management must be respon­sible for fresh ideas for labor-saving machines, new prod­ucts, product expansion, and on the look-out for other firms which can be acquired profitably. This steady inflow of investment proposals is necessary even where the firm's sales are not expanding. Even the static firm must reinvest the cash which flows from its profit and depre­ciation, because the rapid change in technology makes the firm which repurchases equipment used in the past only lose ground to its competitors. 
Selection of alternatives-As new investment proposals are made, they must each be examined to see if they are in conflict with other proposals. Thus a proposal to pur­chase a new machine which would double output might conflict with the corporation's desire to hold output where it is. Proposals can also be competing. If, for instance, 
JANUARY 1963 
the problem is the moving of material by hand, there might lie several other ways of doing it, such as conveyor belt, lift truck, or overhead carrier. Not only must eac~ be considered as opposed to the present method, but e~c must lie considered opposed to the others, for selection of one implies rejection of the others. 
As ideas for investment are proposed, they can be grouped into specific areas such as cost reducti?n, pl~nt expansion, new products, and innovation. Groupings. hke this will help in evaluating the projects. Thus while a new product may have a better expectation of fut~re income than a cost reducing project, the cost reduct10n offers far less risk of failure and, therefore, should be given precedence. Such a grouping can help the firm rec­ognize some of the risks involved in a new product that would not be present in a cost reduction plan or a plant expansion plan. 
Evaluation-Once management has the proposals listed, it must evaluate them properly so that a course of action may be determined. The number of proposals, whether it be one or a hundred, makes no difference. With each proposal management must decide either to accept it and invest, to shelve it for a more appropriate time, or to reject it. Evaluation uses the quantitative approach and is subject to a great amount of debate and discussion. It is in this area that it is most difficult to get management to break old habits. It is only through proper evaluation, however, that what action will be taken on a project can be determined. The principal cause of failure in a capital budgeting program is the inability to evaluate proposals 
properly. The three processes of evaluation are (1) determine the cost of the proposal, (2) measure the net cash flow 
from the proposal, and (3) compare the cost of the proposal with the computed net cash flow. Cost of the proposal-On the surface, determination of 
the cost of a proposal seems to be quite simple. If it is proposed to buy a new machine, what is the price tag? This is an oversimplification, however, because the cost of a new project is more than just the amount of cash necessary for purchase. Each proposal also includes the costs of getting the project into operation. Costs can be grouped into three areas. The first area of cost includes the new equipment and accompanying items such as freight-in, changes in plant area, special foundations, and anything else needed to get the equipment operating. A second important area of cost is the additional work­ing capital needed. When a new machine or product is added, there will prnbably be additional receivables and inventory. This takes cash. The buildup of these current accounts may also make it necessary for the firm to carry more in the cash account permanently. All of these should be added as costs of the new proposal. 
The third area of significance in cost in some proposals is the equipment or product replaced. If one machine replaces another machine which is still operating, what is to be <lone with the loss suffered on the replaced ma­chine? This type of loss is known as a sunk cost and is not included in the cost of the new machine or product. At first it may seem difficut to accept this concept-funds once spent are sunk and should not be used in determining the acceptability of other funds. Robert W. Johnson, in his book, Financial Management, points up the problem of sunk cost. "If you paid $10,000 for an oil wel! that went dry the day after you bought it, would you charge the $10,000 cost against your next investment? Would you say that your next $10,000 investment would have to be doubly profitable in order to recover your dry hole cost--otherwise you would not invest? If you would nor­mally be satisfied with a 10% rate of return, would your next $10,000 have to earn 20% ?" 
With all of the costs of the new proposal determined, it is necessary to measure the revenue that the proposal will produce. 
Measure of cash flow-Evaluation of a project depends upon how much cash the project will generate. Cash is of primary interest because cash is used to pay for the project, the labor, the materials, and management and to yield a return to the investor. In this respect, cash flow-basically net income plus depreciation-is more im­portant than net income only. To arrive at the appro­priate cash flow it is first necessary to measure expected sales or revenues generated by the proposed project. This may seem difficult to estimate; however, most firms who have capital budgeting programs report that they have become very proficient at it. The basic solution of the problem is to be systematic in the approach. Many books are written on how to project sales, and it is too involved a subject to be developed here. It should be sufficient to say that the projection can be accurate with even mini­mal experience. Once sales are projected, costs for ma­terials, labor, overhead, and administration can be de­termined. Any firm has sufficient resources at hand to make this determination quite accurately. After the projection of sales and costs there is only one other ex­pense that must be considered, and that is tax. Since ~axes must be paid, they cannot be part of cash flow. A simple example should help to illustrate the calculation of cash flow. 
Trionics, an electronic manufacturing firm, plans to purchase a new machine which will cost $10,000 installed. It is expected to have a 5-year life at which time it will be fully depreciated with no salvage value. The machine does not replace any other machine and is expected to provide additions to revenue of $6,000 a year with direct costs of $2,000. What is the cash flow for this machine? 
Cash flow  
Revenue from machine  $6,000  
Less direct cost  2,000  $4,000  

Gross profit $4,000 Depreciation per year (straight line) 2,000 
Profit before tax $2,000 Taxes (50%) 1,000 1,000 
Net profit $1,000 CASH FLOW 
$3,000 
The determination of cash flow is more complicated when new equipment replaces old equipment. In this case the differences in cash flow must be computed; however, the principal is the same. 
omparison of
Comparison of cost and cMh fiow-The c . cost and cash flow is not difficult although it mvo1ves 

simple mathematics; nevertheless, it is the area of sub­stantial disagreement as to method and as to implementa­tion. Although there are many different methods of com­paring costs and cash flow, all methods can be grouped into three basic types: payback, return on investment, and present value. 
A. PAYBACK-Investment in fixed assets are usually large and generally take several years to recover. As a rule, the degree of risk assumed by a firm when purchasing a fixed asset is directly related to the length of time re­quired to recover the investment from the firm's cash flow. The payback method of evaluating investment pro­posals stresses the length of time that is necessary for a firm to recoup its investment from profit and deprecia­tion charges. 
While there are several ways to calculate a payback, the most common is: Investment After-tax payback (years)=-------­
Cash flow per annum The following example illustrates this method. Assume that a firm is contemplating the purchase of two machines which require an investment of $1,500 each. Each ma­chine has an expected life of five years and each will be depreciated on a straight line basis with no salvage value. The following data pertain to each machine. 
Cash Flow 

Year  A  B  
1  600  400  
2  500  400  
3  400  400  
4  300  400  
5  200  400  

From this data we see that machine A will pay for itself in three years, whereas it takes 3% years for machine B to pay for itself. 
There are three advantages of the payback method. First, it is easy to calculate. Second, if a firm is ex­periencing a shortage of cash, the payback method may be used to select those investments which yield a quick return of cash funds. Third, the payback method permits a firm to determine the length of time that is required to recapture its original investment, thus determining the degree of risk of each investment. Unfortunately, the payback method ignores the time value of money and the income which may be produced beyond the payback period. 
B. RETURN ON INVESTMENT-The basic return on invest­ment adds very little to the payback method and is cal­culated as follows 
Net profit Return on investment-----­

Investment Customarily, this equation is modified in order to take into account the relative profitability of the various proj­ects. The modification most used is the average rate of return which is calculated as follows: 
Average net profit Average rate of return ---------­

Average investment Referring to the examples given under the payback meth­od, it is noted that both projects yield 131h % return. This is calculated as follows: 
JANUARY 1963 
Cash flow -depr. / useful life Average rate of return=-------------Invcstment/ 2 $2,000-$1,500/ 5 
$1,500/ 2 
lalf:i% 

Note that in the denominator the average investment is used. The investment is full~· used up by the end of the period, and is depreciated on a straight line basis. Note also that cash flow is not usecl alone in this equa­tion. Cash flow minus depreciation or simply net profit is substituted in its place. It may be recalled that using payback as a basis of selection, project A was more de­sirable than B; under this method they arc equally de­
sirable. 
The average-return method of selecting alternative uses of funds takes into consideration income over the entire life of the project; nevertheless, it still possesses a primary weakness in that it ignores the time value of funds. Where the income from the investment docs not vary appreciably, however, this method can closely ap­proximate a true rate of retm11 while still possessing the ease of calculation of the payback method. 
c. PRESENT VALUE--The present value method for evalu­ating proposals is the most difficult to calculate, the most accurate, and the method most often used by firms that have developed capital budgeting programs. While the two previously described methods of measuring alterna­tives have advantages, they both fail to account for the time value of money. This means that if a person were given a choice between receiving a dollar today or a dol­lar a year from today, he would choose a dollar today, because a dollar invested at interest (assuming a rate of 4%) would be worth $1.04 a year from now. This con­sideration ignores any price level changes, of course. 
The present value can be calculated in various ways. Basically, however, the whole problem of present value can be reduced to a compound interest table. Because the compound interest table, annuity table, and present value table all perform the same function, and because they are all so readily available, it will suffice to examine a typical table without going through the procedures of calculation. Furthermore, for the purpose of simplifying this explanation, all methods of discounting cash flow will be ignored, except the one shown in the accompanying illustration which is labeled present value. 
When the interest rate has been computed with the present value method as demonstrated in the accompany­ing computation, the results of the three methods applied to the same projects can be compared. 
Method 
Return on Present Payback investment value 
Machine A 3 yrs. 13.3'lo 12.8'/o 
Machine B 3.75 yrs. 13.3'/o 10.4'/o 

These and any other projects being considered can now be ranked for this budget period. In ranking, additional interest factors can be added where appropriate in order to compensate for risk or for category. For instance, if in the above case machine A were going to be used for a new product line and machine B for a cost reduction pro­gram, and we assessed a risk factor of 5% for new prod­uct lines, then the ranking for present value would be: machine A, 7.8% (12.8 -5.0) and machine B, 10.4%. 
Choice-With the projects or proposals ranked on the basis of one of the above methods, the next problem is to choose the ones to be completed during the budget period. This usually depends on the amount of capital available and the cost of capital, that is, the cost to the firm of the money it has available to invest. Assume that the ma-
Projects below the cost of capital are rejected. Projects above the cost of capital but below the available capital are postponed until more capital becomes available. When all the facts are collected and assembled, the choice of proposals to accept, shelve, or reject is automatic. 
After the capital budgeting program has been estab­lished, it must be examined periodically for errors. This process is called control. Control makes the capital budg­eting program work. After a project has been accepted and it starts returning income, it should be tested to see if the estimates made on the original proposal were cor-
COMPUTATION OF PRESENT VALUE 
A normal present value table has interest rates from 1%-100% and years hence from 1-50. The following table is a portion of a typical table: Table of Present Value of $1 Received at the End of Year 
Years 
hence 8% 10% 12% 14% 

1 .926 .909 .893 .877 

2 .857 .826 .797 .769 

3 .794 .751 .712 .675 

4 .735 .683 .636 .592 

5 .681 .621 .567 .519 


6 .630 .564 .507 .456 Calculations from this table are simple. Assume the in­terest rate is 10%. If $.909 is invested (see table) today, it will be worth $1 at the end of a year (.909 x 1.10 = . 9999). All the other figures in the table could be derived in a similar fashion. 
Now apply this table to the same machines that were used in the payback and average rate of return method. In that example, there were two machines: A with cash flows of $600, $500, $400, $300, and $200 and B with cash flows of $400 for each of 5 years. Both machines cost $1,500. The problem is to find an interest rate which will equate the $2,000 in cash flows with the $1,500 in initial cost. However, since the income is not received at the end of the 5 years but periodically throughout the period, the factors must be applied at the end of each year. Because this is not an exact method due to the mathematics involved, the correct interest rate can be found by trial and error. With machine A estimate the rate to be between 12% and 14%. Now the problem can 
·be solved for the interest rate. 

Machine A 
(1) (2) (1X2) 
(4) (4Xl)
Cash Est. rate Present Eat. rate Present
Year ftow (12%) value (14%) 
value 
1 $600 .893 $ 535.8 .877 $ 526.2 2 500 .797 398.5 .796 384.5 3 400 .712 284.8 .675 270.0 4 300 .636 190.8 .592 177.6 5 200 .567 113.4 .519 103.8 
$1,523.3 $1,461.1 
The true rate of interest then for this machine lies some­where between 12% and 14% because the cash flow at 12% had a present value of $1,523.30, whereas 14% was $1,461, and the true interest rate would have given a present value to the cash flow of $1,500. By interpolation the rate can be estimated to be 12.8% . 
Machine B 
(10%) (12%) 1 $400 .909 $ 363.6 .893 $ 357.2 2 400 .826 330.4 .797 318.8 3 400 .751 300.4 .712 284.8 4 400 .683 273.2 .636 254.4 5 400 .621 248.4 .567 226.8 
$1,516.0 $1 442.0 By interpolation the rate can be estimated to be 10.4%. 
This problem can now be restated for the other machine. At what interest rate would there be indifference about receiving $1,500 today or $400 a year for 5 years? The answer is, at an interest rate of 10.4%. Thus $400 re­ceived over 5 years, discounted at 10.4% compound in· terest, results in $1,500-the initial investment. 
chines have been ranked as follows: 
Machine B $1,500 investment 10.4% rate of return 
Machine A $1,500 investment 7.8% rate of return 
We have $3,000 available to us from depreciation and 
net profit, but our cost of capital is 8%. Under the cir­
cumstances we would invest in machine B only. 

The cost of capital is a subject as broad and extensive as is capital budgeting. As a result it will not be dis­cussed here; however, it can be briefly summarized. The cost to a firm of the capital it generates and borrows is ap~roximately equal to its traditional ratio of earnings on invested assets. Where a firm invests its money in long­run projects which earn less than its traditional rate it is in effect liquidating itself. In practice the money av~il­able and cost of capital provide us with a cut-off point. 
rect. It matters little if they are under or over the actual performance. Any variation is cause for corrective action. As corrections are made, however, so are improvements, and through the process of control the program generates better and better estimating procedures. 
Capital budgeting is the key to successful business op· erations for it insures that a firm will select the best pos­sible in~estments for the funds it has available. Capital budgeting can be as simple or as complex as the finn that uses it. Because it can be used by large as well as small companies, there is no "right" method or procedure. The only "right" approach to evaluating propos~ls for future investment is that the process be systematic-for this is the single most important characteristic of a capital 
budgeting program. 
TEXAS BUSINESS REVIEW 


LOCAL BUSINESS CONDITIONS 

:As a reader's guitle to better utility of retail sales data, an average percent change from the preceding month has been computed for each month of the year. This percent change is marked with a dagger (t) following that figure. The next percent change represents the actual change from the preceding month. A large variation in the normal sea­sonal from the actual figure represents an abnormal month. The third percent change shows the change from the identical period the preceding year. Postal receipt in­formation which is marked by an asterisk (*) indicates cash receipts received during the four-week postal account­ing period ended Nov. 9, 1962, and the precent changes from the preceding period and the comparable period in 
Percent change  
City and item  Nov 1962  Nov 1962 from Oct 1962  Nov 1962 from Nov 1961  


ABILENE (pop. 90,368) 
Retail sales . ............... ... . .. .. . 
Apparel storefl . . . . . ........ . 
Drug stores ....... ... ... ... . .... . 
General merchandise at.ores........ . 
Lumber, building material, 

and hardware stores....... ..... . Pootal receipts• ....................S Building permits, less federal contracts $ Bank debits (thousands) ............ .$ End-of-month deposits (thousands)t.. $ Annual rate of depoelt turnover..... . Employment (area) ............... . 
Manufacturing employment (area) . Percent unemployed (area) . . ....... . 
ALPINE  (pop. 4,740)  
Poetal  receipts•  ....................S  4,109  -21  + 3  
Building permits, less federal contracts $ Bank debits (thouaands) .. .. .........$  50,275 3,643  +906  +3042 + 20  
End-of-month deposits (thonsands)t.. $  4,360  2  + 7  
Annual rate of deposit turnover... .. .  9.9  + 11  

AMARILLO (pop. 137,969) 
Retail ealea ..................... .... 1t 

Apparel at.ores .................... 1 t 

Automotive at.ores lt
················ 
Eating and drinking places. . ...... St Furniture and household appliance at.ores 1t
········ ········ 

Postal receipts• ....... ..... ......... 254,820 Building permits, less federal contracts $ 4,193,370 Bank debits (thousands) .... ......... $ 242,359 End-of-month deposits (thousandsJi..$ 122,660 Annual rate of depoelt turnover...... 23.4 Employment (area) 51,900
················ 

Manufacturing employment (area). 5,450 Percent unemployed (area) ......... . 4.2 
ANDREWS (pop. 11,135) 
Poeta1 recelpU-....................S 6,941 -23 + 27 Building permits, less federal contracts $ 55,519 + 45 -60 Bank debits (thousands) ....... . .. ...S 5,237 -7 + 7 End-of-mouth depoelts (thouaandslt..S 7,543 + 8 -26 Annual rate of depoelt turnover..... . 8.6 -18 + 43 
JANUARY 1963 
1t 1 t st 
+ 2t 
9t 103,163 964,301 106,043 
71,393 
17.5 
35,800 3,920 
6.2 
•• -,I 
-17 -24 2 + 3 
+ 6 
7 5 -12 4 -47 + 18 
9 + 
7 
1 
8 5 
+ 9 + 22 

the previous year. Annual postal data are for 13 four-week periods falling closest within 1960 and 1961 calendar years. Changes less than one-half of 1 percent are marked with a double asterisk (**). Waco retail sales information is reported in cooperation with the Baylor Bureau of Business Research. End-of-month deposits as reported represent money on deposit in individual demand deposit accounts on the last day of the month and are indicated by the symbol (t). All population figures are final lGGO census data, with the exceptions of those marked (r) which are 
official revisions. Figures under Texarkana with the fol­lowing symbol ( §) are for Texarkana, Texas, only. 
Percent change  
City and item  Nov 1962  Nov 1962 from Oct 1962  Nov 1962 :from Nov 1961  


ARANSAS PASS (pop. 6,956) 
Postal receipts• . . . . . . . . . . . . . . . . . . . S Building permits, less federal contracts $ Bank debits (thousands) ...... ...... $ End-of-month deposits (thousands) i. $ Annual rate of deposit turnover... .. . 
+ 
87 + f) 


ARLINGTON (pop. 44, 775)  
Retail sales  
Apparel at.ores .... . . . ............ . lt  -1  +  
Lumber, building material,  
and hardware at.ores . . .......... . 9t  -16  + 5  
Postal receipts• .. .. ........... . ....S 44, 762  -13  + 11  
Building permits, less federal contracts $ Bank debits (thousands) ............ .$ 957,935 36,355  -45 2  -16 + 10  
End-of-month deposits (thousands) i . .$ 26,415  -1  + 22  
Annual rate of deposit turnover.. .. . . Employment (area) . ...... ... ... . . . 16.5 220,500  -4 ••  + 2  
Manufacturing employment (area) . 49,350  + 1  
Percent unemployed (area) ......... . 5.0  + 11  6  
AUSTIN (pop. 186,545) Retail sales ........................ . 1t  ••  + 25  
Apparel at.ores . ..... ............. . Automotive stores .... . .......... . 1t lt  -4 -15  -1 + 24  
Food stores ...................... . St  -7  + 2  
Furniture and household  
appliance stores . . . . . . . . . . . . . . . . 1t  -10  + 7  
Lumber, building material, and hardware at.ores........ . .... 9t  -5  + 17  
Postal receipts• ................. .. .$ Building permits, less federal contracts $ 8,888,792 Bank debits (thonsands) ....... ... .. $ 276,039 End-of-month deposits (thousands)i..$ 157,605 Annual rate of depoelt turnover. . . 21.0 Employment (area) . . . . . . . . . . . . . . . . 84,500 Manufacturing employment (area) . 5,840 436,813  + 10 +186 + 4 •• + 2 + 1 ••  + 13 + 38 + 20 -2 + 20 + + 4  
Percent unemployed (area) .......... 3.8  + 6  3  

BAY CITY (pop. 11,656) 
Automotive at.ores ............... . Postal receipts• ........... .. . ......$ Bank debits (thouaands) .............$ End-of-month depoeits (thousands) i $ Annual rate of depoeit turnover..... Nonagricultural placements . . . . . . .. 
-lt 11,230 16,357 
23.344 
8.4 65 3,763 22, 160 5,581 
6.379 
10.6 
29 -5 
-11 + 15 
+ 1 + 17 
-12 -2 
-26 4 -15 5 4 + 4 
+ 1 3 
-7 + 
-42 -27 
-
-
-
-
-
+ 
+ 
--
-
+ 
10 4 12 4 
29 7 
76 4 3 6 
1 17 + + + + 
+ + + + + 
+ -
16 22 11 8 
17 23 58 2 5 3 
13 25 
Percent change 
Percent change
Local Business Conditions Local Business Conditions 
Nov 1962 Nov 1962 

Nov 1962 Nov 1962 Nov Nov from from
from from 1962 Oct 1962 Nov 1961 City vnd item 1962 Oct 1962
City ~nd item 	Nov 1961 
BRENHAM (pop. 7,740) BAYTOWN (pop. 28,159) 
Postal receipts• ....................$ 7,285 -14


Retail sales 	-4 
-5 + 6 Building permits, less federal contracts $ 70,674
Automotive stores ............ . -1t + 17 -87 Postal receipts• ... . .... ... ... .. ....$ 24,983 + 3 + 12
-9 -3 Bank debits (thousands) ....... ... ...$ 11,724 

208,922 -End-of-month deposits (thousands>* ..$ 4 Bank debits (thousands) .............$ 26,893 7 + 12 Annual rate of deposit turnover..... . 10.3 + 1 + 10 
Building permits, less federal contracts $ 44 -54 	13,307 -+ l 
24,971 + 2 + Nonagricultural placements . . .. . 42 -33
End-of-month deposits (thousands>:..$ 	-43 
Annual rate of deposit turnover . .... . 13.0 -6 + 
Employment (area) ..... .......... . 518,500 •• + BROWNSVILLE (pop. 48,040) 

2

Manufacturing employment (area). 91.750 •• Retail sales .. . ... . ................. . 1t -16 + IO Percent unemployed (area) ... . ..... . 4.0 + -11 Automotive stores ............... . 1t -26 + 16 Lumber, building material. and hardware stores............ . 9t -14 + 6
BEAUMONT (pop. 119,175) 
Pootal receipt.• .. ..................$ 33,107 •• 

+ 8
Retail aales . .. ............... ...... . 1t 2 + 8 

Building permits, less federal contracts $ 154,611 5 ­

Automotive stores .... ......... .. . 1t 7 + 12 	-62 

Bank debits (thousands) .......... . .. $ 37,792 -11 + 22

Furniture and household End-of-month deposits (thousande)t ..$ 23,191 -1 
+ 15
appliance stores ... ........... . + 21 + 31 

Annual rate of depoolt turnover..... . 19.5 -12 + 7Lumber, building material, Nonagricultural placements 
334 -33 + 13
and hardware otores. ........... . 9t -7 + 50 
Postal receipts• .............$ 122,861 -4 + 7 

BROWNWOOD (pop. 16,974) 
Building permits, less federal contracts $ 681,443 -50 -87 
Retail sales . .. .. .................•..


Bank debits (thousands) .............$ 167,957 8 5 	lt -1 + 

Apparel stores ................... . 1t -2

End-of-month deposits (thousands)t..$ 104,268 + 1 
Postal receipts• . . ..................$ 20,417 -19

Annual rate of depoolt turnover.. ... . 19.4 -9 4 Building permits, less federal contracts $ 16,025 -30 -25
Employment (area) ............... . 107,000 •• + 2 

Bank debits (thousands) .............$ 16,562 -8


Manufacturing employment (area) . 34,340 -1 + 13 Percent unemployed (area) ......... . 7.3 + 18 + 6 End-of-month deposits (thousands)*· .$ 13,426 •• 
+ ..8 
Annual rate of deposit turnover..... . 14.8 -6 + 6 Nonagricultural placements ... . . 116 -31 + 4
BEEVILLE (pop. 13,811) 

Postal receipts• ................... . $ 9,660 -24 -10 BRYAN (pop. 27,542) Building permits, less federal contracts $ 23,050 -98 -66 
Retail sales ... ..................... . 1t -2 + 6 Bank debits (thousands). . ... . .....$ 10,692 4 + 10 
Automotive stores .... . .......... . lt + 12 + 17 End-of-month deposits (thousands) i . .$ 14,613 + 5 + 5 
Food stores ...................... . 3t -s + 17 

Annual rate of deposit turnover..... . 9.0 -7 + 6 

Lumber, building material, Nonagricultural placements .. 89 -45 -38 
and hardware stores............ . 9t -19 -16 


Postal receipts• ....................$ 23,649 + 11 + 
BIG SPRING (pop. 31,230) Bank debits (thousands) .. .. ........ .$ 27,371 + 
End-of-month deposits (thousands>:..$ 18,648 + 1 +

Retail sales .... ... ....... ....... . .. . 1t 7 + 

Annual rate of deposit turnover..... . 17.7 +
Drug stores ................... . 5t 

+ 
Nonagricultural placements 223 -23 + 12
Lumber, building material, 

and hardware stores............ . 9t -17 
Postal receipts• ....................$ 32,255 -14 + 1 CALDWELL (pop. 2,204) 
Building permits, less federal contracts $ 389,265 + 77 Postal receipts• ....................$ 2,195 -10

+ 11 

Bank debits (thousands) .............$ 40,332 -12 Bank debits (thousands) ............ .$ 2,707 -1 + End-of-month deposits (thousands)*·.$ 27,153 -1 End-of-month deposits (thousandsJi..$ 4,137 •• Annual rate of deposit turnover. 17.8 -7 7 Annual rate of deposit turnover..... . 7.9 -4 + Nonagricultural placements 195 -26 8 
CAMERON (pop. 5,640) 

BISHOP (pop. 3,722) 	Postal receipte• ....................$ 4,812 -17 + 4 Building permits, less federal contracts $ 13,230 -75 -67
Postal receipts• .. . .. . ..... .. .......$ 3,095 

+ 24 + 16 
Bank debits (thousands) ... ..........$ 5,029 -14 -9

Bank debits (thousands) . .. ......... $ 1,896 

-14 -13 
End-of-month deposits (thousands) i . .$ 5,293 -4 + 2End-of-month deposits (thousand•) i . .$ 2,765 
-9 -12 
Annual rate of deposit turnover..... . 11.2 -10 -10Annual rate of deposit turnover..... . 7.9 
-11 -1 
CANYON (pop. 5,864) 

BONHAM (pop. 7,357) Building permits, less federal contracts $ 108,200 -40 Bank debits (thousands) .......... .. .$ 9,302 ** + 15 Bank debits (thousands) . . ...........$ 7,116 -9 + 14 5 •• End-of-month deposits (thousande)t ..$
End-of-month deposits (thousande) i . .$ 8,276 	6,941 + 3 + 4 
Annual rate of deposit turnover..... . 13.1 	-15 + 13
-3 + 8 Annual rate of deposit turnover..... . 12.5 
BORGER (pop. 20,911) 	CARROLLTON (pop. 4,242) 
Postal receipts• ... .................$ 16,170 	Postal receipte• ....................$ 4,981 + 2 + 12 

-5 	-76
Building permits, less federal contracts $ -10 	Building permits, less federal contracts $ 135,800 -72
192,738 + 5 -20

Nonagricultural placements .. . ... . 	Bank debits (thousands) ........ . ....$ 5,541 + 55 

-44 -29

127 	End-of-month deposits (thousands)t..$ 3,154 + + Sl Annual rate of deposit turnover.. 21.3 + 22
BRADY (pop. 5,338) 
Pootal receipts• ....................$ 


3,651 -24 -18 CISCO (pop. 4,499) 
Building permits, less federal contracts $ 
12,200 

-27 -23 Postal receipts• ... .................$ 3,662 	-27 

Bank debits (thonoands) ..... ........$ 


-13 End-of-month deposits (thousands>* . . $ 
5,058 -19 + 11 Bank debits (thousande) .......... . . . $ 3,327 + 

7,476 -3 -2 End-of-month deposits (thonsandeH ..$ 3,735 •• Annual rate of deposit turnover..... . 
8.0 -20 + 13 Annual rate of deposit turnover..... . 	10.7 -11 + 
12 
TEXAS BUSINESS REVIEW 
Percent change

Local Business Conditions 
Nov 1962 Nov 1962 Nov from from City Pnd item 1962 Oct 1962 Nov 1961 

CLEBURNE (pop. 15,381) 
Poetal receipts• .. ........ ..........s 14,202 + 5 + 2 Building permits, less federal contracts $ 204,325 + 3 +103 Bank debits (thousanda) . . .... .......$ 11,672 + 14 End-of-month deposits (thousandaH.. $ 12,079 -1 + 3 Annual rate of depoelt turnover. . ... . 11.5 -2 + 10 Employment (area) .... ... .. ...... . 220,500 •• + 2 
Manufacturing employment (area) . 49,350 + 4 Percent unemployed (area) .. . ...... . 5.0 + 11 6 
CLUTE (pop. 4,501) 
Poetal receipts• ....................$ 1,633 -14 -9 
Building permits, less federal contracts $ 30,490 -64 -42 
Bank debits (thousanda) . . ...........$ l,934 + 2 + 49 
End-of-month deposits (thousandaH..$ 1,547 •• -14 
Annual rate of depOlllt turnover.. .. . . 15.0 + + 63 

COLORADO CITY (pop. 6,457) 
Retail sales 
Automotive stores ... . . ..... . . ... . 3 -2 
Lumber, bulldlng material, 

and hardware stores............ . 9t + -14 Postal receipts• ............. ..... . . $ 5,792 + 8 + 12 Building permits, less federal contracts $ 7,026 + 12 -4 Bank debits (thousanda) .............$ 6,631 + + 7 End-of-month depoelta (thousanda) i ..S 13.0 + -10 
COLLEGE STATION (pop. 11,396) 
Poetal receipts• ....................S 18,573 -29 + 2 Building permits, less federal contracts $ 40,650 -12 -48 Bank debits (thousanda) ........ . ... .$ 3,718 -12 -2 End-of-month deposits (thousanda) i .. $ 2,929 1 + 9 Annual rate of depoalt turnover..... . 15.2 -8 -10 
COPPERAS COVE (pop. 4,567) 
Postal receipts• .. ......... ... ......$ 3,115 + 2 + 37 Building permits, less federal contracts $ 72,525 -43 -80 Bank debits (thousanda) .. ... .. ..... .$ 1,333 -11 + 26 End-of-month deposits (thousandaH.. $ 1,122 •• + 52 Annual rate of deposit turnover..... . 14.2 -18 -19 
CORPUS CHRISTI (pop. 167,690) 
Retail aa.lea . . . . . . . . . . • . . . • • . • • . . • • • • 1t -17 + 11 Apparel stores . . . . . . . . . . . . . . . . . . . . 1t + 10 -6 Automotive stores . . . . . . . . . . . . . . . . 1t -18 + 13 Lumber, building material, 
and hardware stores. . . . . . . . . . . . . 9t + 2 -11 Postal receipts• .. .... . .............$ 170,624 -1 + 3 Building permits, less federal contracts $ 3,201,980 -23 +136 Bank debits (thousanda) ... ......... .$ 201,759 + 2 -4 End-of-month deposits (thousandaH..$ 109,455 2 -3 Annual rate of depoalt turnover. . . . . . 21.8 + 2 •• Employment (area) . . . . . . . . . . . . . . . . 65,300 + + 2 
Manufacturing employment (area) . 8,690 •• + 2 Percent unemployed (area) . . . . . . . . . . 5.1 + -11 
CORSICANA (pop. 20,344) 
Postal receipts• . .......... . ... . ....$ 42,609 + 62 + 14 Building permits, less federal contracts $ 476,426 +232 +2046 Bank debits (thousanda) ......... ... . S 18,539 2 1 End-of-month deposits (thousandaH . . $ 20,885 -1 + 3 Annual rate of depoelt turnover. 10.6 -5 4 Nonagricultural placements ........ . 178 -21 3 
CRYSTAL CITY (pop. 9,101) 
Postal receipts• ............. . ......S 3,364 -6 -1 Building permits, leu federal contracts $ 54,490 +137 + 92 Bank debits (thousands) ........... . . S 3,474 + 2 + 23 End-of-month deposits (thonaandsH.. S 3,049 6 + 4 Annual rate of depomt turnover..... . 13.3 + 3 + 16 
JANUARY 1963 
Percent change

Local Business Conditions 
Nov 1962 ov 196~ Nov from from City and item 1962 Oct 1962 Nov 1961 

DALLAS (pop. 679,684) 
Retail sales ............. .. ......... . + 3t -4 -1 

Apparel stores ..... .... .......... . 1t + 11 -4 

Automotive stores .. ... . .. . .... .. . + 7t -8 + 15 
Eating and drinking places.. .. ... . -15t -11 -2 
Florists + 3t -1-1 -10 
Food stores + l -12 -6 
Furniture and hoU&ebold 
appliance stores . . . . . . . . . . . . . . . . 1t -27 -35 
Lumber, bullding material. 
and hardware stores.......... ... -14t -6 + 

Office, store, and school 

supply dealers . . . . . . . . . . . . . . . . . ••t -10 Postal receipts• ...............$ 2,522,013 + 1 + 5 Building permits, less federal contracts $17,691,649 -22 + 49 Bank debits (thousanda) . . ......... .. $ 3,403,424 + 2 + 10 End-of-month deposits (thousanda) i $ 1,301,199 •• + 4 Annual rate of deposit turnover. .. .. 31.4 + + 5 Employment (area) . . . . . . . . . . . . . . . . 461,600 •• + 
Manufacturing employment (area) . 102,900 •• + 7 Percent unemployed (area) . . . . . . . . . . 4.1 + 21 6 
DEER PARK (pop. 4,865) 
Postal receipts• . ... .. .. . . . .........S 4,057 -32 -17 Building permits, less federal contracts $ 46,741 -31 -30 Bank debits (thousands) . . . . . . . . . . . . $ 3,664 + 12 + 4 End-of-month deposits (thousanda);.. $ 2,435 + 7 + 12 Annual rate of depoelt tnrnover.. ... . 18.6 2 -2 
DEL RIO (pop. 18,612) 
Retail sales 
Lumber, bu!ldlng material, 
and hardware stores...... . -9t -13 -7 

Postal receipts• . . . . . . . . . S 12,184 -14 + 9 
Building permits, less federal contracts $ 150, 795 -70 + 157 
Bank debits (thousands) . . . ... .$ 10, 764 -12 + 11 
End-of-month deposits (thousands) i ..$ 14,941 .. + 12 
Annual rate of deposit tnrnover.. . . . . 8.7 -12 + 1 
DENISON (pop. 22,748) 
Retail sales 
Drug stores . .. . .... . ... .. ....... . -St + -24 


Postal receipts• ...... ............. .$ 19,134 •• 

Building permits, less federal contracts $ 247,518 + -24 
Bank debits (thousands) . . . ... . .. . . . . $ 16,678 + 
End-of-month deposits (thousands) i ..$ l S.556 + + 
Annual rate of deposit tnrnover. . ... . 13.l 4 + 2 
Nonagricultural placements 139 -37 9 
DENTON (pop. 26,844) 
Retail sales ......... . .... . ....... .. . -22 + 19 

Automotive stores . . . . . . . . . . . . . . . . 1t -2 + 13 
Drug stores . . . . . . . . . . . . . . . . . . . . . . st •• + 12 

Postal receipts• ........ ............$ 33,943 -9 -12 

Building permits, less federal contract. $ 1,536,424 +298 +371 
Bank debits (thousands) ..... ........$ 24,756 •• + 24 

End-of-month deposits (thousanda) i. S 24,245 -1 + 6 
Annual rate of deposit tnrnover. . . . 12.2 + 1 + 16 
Nonagricultural placements 143 -46 + 28 
DONNA (pop. 7,522) 

Postal receipts• ..... ..... . . . ...... . S 2,621 -33 -18 
Building permits, less federal contracts $ 39,900 +153 +142 
Bank debits (thousanda) . . . . . $ 2,345 -8 -6 
End-of-month deposits (thousands) i ..$ 2,690 32 10 
Annual rate of deposit tnrnover . . . . . . 8.5 -9 -16 

EDINBURG (pop. 18,706) 
Postal receipts• ...... ..............$ 6,211 -56 -35 Building permits, less federal contracts $ 42,113 -56 -60 Bank debits (thousanda) . . . . . . . . . . . . $ 13,772 -6 21

-
End-of-month deposits (thousands) i ..$ 9,917 + 4 + 15 
Annual rate of deposit tnrnover. 17.0 -11 -25 
Nonagricultural placements . ... . ... . 254 + 2 -S8 

13 

Local Business Conditions  Percent change Nov 1962 Nov 1962  Local Business Conditions  Percent change Nov 1962 Nov 196  
Nov  from from  Nov  from from  
City and item 1962  Oct 1962 Nov 1961  City and item 1962  Oct 1962 Nov 196  
EDNA (pop. 5,038) Retail .ales Food stores .............. · · · · · · · · · Postal receipts• .. ............... · ..$ Building permits, less federal contracts $ Bank debits (thousands) ....... . · · · · · $ End-of-month deposits (thousands) i . .$ Annual rate of deposit turnover..... . -3t 3,895 64,150 7,957 7,241 13.3  -2 -39 -84 + + + 6 -3 + 59 + 55 -7 + 66  GALVESTON (pop. 67,175) Retail sales ........................ . Apparel stores ................... . Food stores ...................... . Furniture and household appliance stores ............... . Postal receipts• ... ....... . .........S Building permits, less federal contracts $ Bank debits (thousands) .............$ -1t -lt -St -1t 80,734 717,519 91,661  -4 -10 -1 + 15 + 2 -43 -6 -22 -IS -12 -49 -7 +91 + 2  
EL PASO (pop. 276,687) Retail sales ... . . . .......... · · · · · · · · · Apparel stores ................... · Automotive stores ............... . Lumber, building material, and hardware stores. . .......... . 1t lt 1t 9t Postal receipts• . . ...... .. ..........$ 318,859 Building permits, less federal contracts $ 4,021,091 Bank debits (thouaands) ..... . ..... . . $ 359,792 End-of-month deposits (thousands); . . $ 186,524 Annual rate of deposit turnover. . . . . . 23.4 Employment (area) . . . . . . . . . . . . . . . . 94,000 Manufacturing employment (area) . 15,290 Percent unemployed (area) . . . . . . . . . . 5.2  -12 + 14 -32 -15 + 8 +139 •• + 2 -1 •• -3 + 11 -12 -25 -9 -10 + 7 + 16 5 + 4 7 + 1 + 8 + 21  End-of-month deposits (thousands) i . .$ Annual rate of de1>0sit turnover. .... . Employment (area) .......... ..... . Manufacturing employment (area) . Percent unemployed (area) ......... . 60,685 17.9 52,000 10,520 8.9 GARLAND (pop. 38,501) Retail sales ........................ . Automotive stores ... . ..... ...... . Furniture and household -It -1t appliance stores . . . . . . . . . . . . . . . . -lt Postal receipts• ....................$ 33,614 Building permits, less federal contracts $ 1,231,564 Bank debits (thousands) ............ . $ 28,239 End-of-month deposits (thousands);. $ 15,975  -2 -5.. -1 + 5 -7 + 7 -I -I + 5 -14 -17 + 13 -15 -29 -2 + 3 +S6 +46 -2 -I -44 -12 + 9  
ENNIS (pop. 9,347) Building permits, Jess federal contracts $ Bank debits (thousands) ....... . .....$ 111,250 6,862  -3 -19 +173 -10  Annual rate of de1>0slt turnover. . . . . . 21.5 Employment (area) . . . . . . . . . . . . . . . . 461,600 Manufacturing employment (area) . 102,900 Percent unemployed (area).... ... ... 4.1  -1 •••• + 21 -24 + 2 + 7 -6  
End-of-month deposits (thousands);..$ Annual rate of deposit turnover..... . 7,084 11.5  -2 -18 8 -3  GATESVILLE (pop. 4,626)  
Postal receipts• ....................S 4,950  -23 + 30  
EULESS (pop. 2,062) Building permits, less federal contracts $ 208,410 Bank debits (thousands) .............$ 245  -49 + 12 + 33  Bank debits (thousands) .............$ 6,154 End-of-month deposits (thousands);.. $ 5,969 Annual rate of deposit turnover. . . . . . 12.1  -9 -5 -7 + 16 + 6 + 9  
End-of-month deposits (thousands);..$ 664 Annual rate of deposit turnover. . . . . . 5.0  + 28 -31  GIDDINGS (pop. 2,821) Postal receipts• . .. ........ .........S 3,817  + 10 + 8  
+ 
23 Manufacturing employment (area) . 5,580 4 



~ORT WORTH (pop. 356,268) 
Retail sales . . . . . . . . . . . . . . . . . . . . • . . . • ••t Apparel stores . . . . . . . . . . . . . . . . . . . . 7t .A.utomotive stores . . . . . . . . . . . . . . . . St Drug stores . . . . . . . . . . . . . . . . . . . . . . St Eating and drinking places. . . . . . • . St Food stores . . . . . . . . . . . . . . . . . . . . . . . 7t Furniture and household 
appliance stores ............... . 3t Gasoline and oervice stations...... . 
2t 
General merchandise stores........ . 

+ 14t 
Lumber, building material, 
and hardware stores. . . . . . . . . . . . . -14t Postal receipts• ... .................$ 852,197 Building permits, less federal contracts $ 1,945,407 Bank debits (thousands) .............$ 806,542 End-of-month deposits (thousands);..$ 388,896 Annual rate of dePOBit turnover...... 24.7 Employment (area) . . . . . . . . . . . . . . . . 220,500 
Manufacturing employment (area). 49,350 Percent unemployed (area) . . . . . . . . . . 5.0 
FREDERICKSBURG (pop. 4,629) 
Retail sales . . . . . .. . . .. .. .. .. .. .. .. .. 1t Drug stores . . . . . . . . . . . . . . . . . . . . . • 5t Food stores . . . . . . . . . . . . . . . . . . • . . . St General merchandise stores. . . . . . . . . + 2t 
Postal receipts• .. ..................$ 5,374 Building permits, less federal contracts $ 29,200 Bank debits (thousands) .............S 9,462 End-of-month deposits (thousands) i . .$ 8,313 Annual rate of dePOBit turnover. 13.5 
+ 
2 

+ 	
7 


-13 -3 -4 
+ 12 
-5 -5 
+ 16 
-	16 
+ 	9 
-	12 
4 -2 -4 
+ 
+ 11 
+ 
15 -4 + 13 + 10 -8 -59 

+ 
13 

+ 
13 


-	2 

Bank debits (thousands) ... ..........$ 3,397 + 6 + 18FORT STOCKTON (pop. 6,373) End-of-month deposits (thousands);..$ 4,087 + 1 + s Bank debits (thousands) .......... . ..$ 5,812 8 + 8 Annual rate of deposit turnover. . . . . . 10.0 + 4 +14 
End-of-month deposits (thousands); .. $ 5,117 + 1 
GLADEWATER (pop. 5,742) 
Annual rate of deposit turnover. . . . . . 13.2 + 3 
Postal receipts• ....................$ 6,144 

Bank debits (thousands) ... ... .......$ 3,306 End-of-month deposits (thousands);..$ 6,205

+ 	
5 Annual rate of deposit turnover. . . . . . 6.3 

+ 	
2 Employment (area) . . . . . . . . . . . . . . . . 28,750


Percent unemployed (area).......... 4.8 

+ 	3 

+ 	9 GOLDTHWAITE (pop. 1,383) 
Postal receipts• ....................S 1,586 -24 -10 9 Bank debits (thousands) .............$ 3,110 -8 + 8 End-of-month deposits (thousands);..$ 3,497 -3 -104 Annual rate of deposit turnover. . . . . . 10.5 -11 +18
+ 	3 
GRAHAM (pop. 8,505) 

-	13 Postal receipts• ....................S 7,690

+ 	4 Building permits, less federal contracts $ 45,700 
-	4 Bank debits (thousands) .............$ 8,745•• End-of-month deposits (thousands) t .. $ 10, 735 •• Annual rate of deposit turnover..... . 9.7 
-13  + 11  
- 7  -6  
-4  +10  
- 5 ••••  -11 •• -8  
+ 9  +S3  

- 7  -11  
-- 29 3  +m..  
- 1  + s  
-4  

GRANBURY (pop. 2,227) 

+ 	2 Postal receipts• ....................$ 2,520 9 +20
4 Bank debits (thousands) . ............$ 1,686 + 8 t IS 

6 
End-of-month deposits (thousands);.. $ 2,161 + 6 + 4 
Annual rate of deposit turnover... . . . 9.7 + + 9 

+ 14 GRAND PRAIRIE (pop. 30,386) 
-3 Postal receipts• ....................S 21,309 

+ 
8 Building permits, Jess federal contracts $ 1.338,613 

+ 
11 Bank debits (thousands) .............S 18,029 


+ 
26 End-of-month deposits (thousands) i . .$ 10,359 -65 Annual rate of deposit turnover. . . . . . 20.5 

+ 
16 Employment (area) . . . . . . . . . . . . . . . . 461,600•• Manufacturing employment (area) . 102,900 

+ 
16 Percent unemployed (area).. 4.1 


-12 +128 -14 -4 -13 
.. 

+ 21 
+ 7 
+122 t IS + 2 t SS + 2 + 7 

·...oca1 Business Conditions City and item  Nov 1962  Percent change Nov 1962 Nov 1962 from from Oct 1962 Nov 1961  Local Business Conditions City ~nd item  Nov 1962  Percent change Nov 1962 Nov I962 from from Oct I962 Nov 1961  
;RAPEVINE (pop. 2,821)  HUMBLE (pop. 1,711)  
'ootal  receipts•  .... . ............. ..S  3,258  -18  + 4  Building permits, less federal contracts $  60,000  +5900  
luilding permits, less federal contracts $ lank debits {thousands) . . . .... . .....$  482,100 2,908  +831 -14  +998 + 20  Bank debits {thousands) ............ End-of-month deposits (thousands) i  $ $ 2,625 2,889  -+  8 2  + I9 + I6  
rnd--0f-month deposits {thonaandsH.. $ 1.nnual rate of depoeit tnrnover..... . 2,682 12.6 ;REENVILLE (pop. 19,087)  -6 -12  -7 + 25  Annual rate of deposit turnover.. ... . IOWA PARK (pop. 3,295) Building permits, less federal contracts $  Il.0 l SI,300  -IO + 52  + 4 -13  
tetail salea  .. . ......... ..... . ...... .  - lt  -19  + 9  Bank debits  {thousands) .. . . . ........$  3,224  8  + 2  
Apparel stores  ... ... . ............ .  - lt  + 2  + 4  End-of-month deposits (thouaandsH . . $  3,833  + 9  
Drug  stores  .. . .......... . ....... .  - st  - 4  - 6  Annual rate of deposit turnover. .. . . .  IO.O  
Lumber, bnildlng material, and hardware stores............ . 'ootai receipts• ........ ..... .......• ;.im1ding permits, lees federal contracts $ lank debits {thonaands) .. . . .........$ Cud--0f-month deposits {thonaandsH.. $ lnnual rate of deposit tnrnover.. .. . .  -9t 26,779 62,300 15,18S 14,8S9 12.3  -39 -12 -5S -14 •• -15  -6 + 17 -48 •• -12 + 13  JACKSONVILLE (pop. 9,590) Postal receipts• ...... . .............S Building permits, less federal contracts $ Bank debits {thousands) ....... . .....$ End-of-month deposits {thousandsJi.. $ Annual rate of deposit turnover..... . 19,289 46,100 10,390 8,569 I4.2  -4 -17 9 4 8  -1 -89 9 7  
fonagricultural placements ........ . 86 flALE CENTER (pop. 2,196) 'ootal receipts• ........... .. ...... .S luildinir permits, less federal contracts $ lank debits (thousands) .............$ ~nd--0f-month deposits {thonaandsH.. $ \nnual rate of deposit turnover.... . . 1,742 9,SOO 4,S4S 4,276 12.8  -22 -22 -62 + 2 + 1 -10  + 23 •• -58 + 8 -8 + 9  JASPER (pop. 4,889) Retail sales ........................ . Automotive stores .. ............. . Drug stores ...... . .............. . Postal receipts• ....... ........... ..S Building permits, less federal contra<:ts $ Bank debits {thousands) ......... . ...$ End-of-month deposits {thousands) i .. $  1t 1t st 7,026 45,800 9,460 7,523  .. 4 + 2 -4 -68.. ••  + 8 + 17 + 23 -2 + 91 + I6 -11  
llARLINGEN (pop. 41,207)  Annual rate of deposit turnover..... .  I5.I  - 2  + 32  
l!'Olltal recelpt.19 ................. . ..• 3uildinir permita, lees federal contra<:ts $ Bank debita (thonaands) .............$ End--0f-month depoeita {thousandsH.. $ Annual rate of deposit turnover. .. .. . lfonagricultural placements ...... . . . HEMPSTEAD (pop. 1,505) 0 POlltal recelpta• ............. . ......S 'Bank debita (thonaands) ... ..........$ End--0f-month depoeita {thousands)i.. $ ~nnual rate of deposit turnover..... . HENDERSON (pop. 9,666) !Retail salee Apparel storee ......... . ......... . IPoataI receipta• .... . .............. . S Building permita, less federal contracts $ IBank debita (thousands) . . .. . ........$ End-of-month deposlta {thousandsH.. $ !Annual rate of deposit turnover... .. .  28,761 65,300 35,040 27,783 14.4 401 3,320 1,221 2,064 6.6 -1t 8,909 37,18S 7,348 16,424 S.4  -lS -52 -16 -9 -13 -27 -S8 -29 -I3 -29 + 9 -24 + 11 + IO •• -10  -19 -96 -7 + 1 -11 -26 -S9 -16 + 8 -28 + 10 + 12 -23 + 4 + 3••  JUSTIN (pop. 622) Postal receipts• ... . .... .. ..........S Bank debits (thousands) . .. . . $ End-of-month deposits (thousandsli.. $ Annual rate of deposit turnover..... KATY (pop. 1,569) Building permits, less federal contracts $ Bank debits {thousands) .... . ....... $ End-of-month deposits {thouaandsli.. $ Annual rate of deposit turnover... . . . KILGORE (pop. 10,092) Postal receipts• ........ . ...........$ Buildinir permits, 11!8'1 federal contra<:ts $ Bank debits (thousands) ...... . ......$ End-of-month deposits (thousands) i .$ Annual rate of deposit turnover.. . .. . Employment {area) . .. ......... .. . Manufacturing employment {area) . Percent unemployed (area) ........ .  460 l,3Sl 895 I8.2 33,000 2,37I 2,4I9 Il.8 I0,808 52,705 12,133 13,273 11.0 28,750 5,S80 4.8  -48 -14 + 1 -19 + 72 + + I 9 -26 -I2 + 6 •• + s•• •• + 9  -17 + 4 + 5 + 2 +340 + 19 + 20 + 4 -18 -61 •• -11 + 12 •• -3 + 83  
HEREFORD (pop. 7,652) Postal receipts• ................... . S l!uilding permits, less federal contracts $ 11lank de bi ta (thousands) .. . ........ . . $ End-of-month deposits {th0t188nds) i ..$ il.nnual rate of deposit turnover..... .  8,S94 72,2SO 21,004 I6,663 16.8  -18 -91 + 18 + 2S + 1  -6 + 2S + 37 + 32 + lS  KILLEEN (pop. 23,377) Postal receipts• ........ ...... ......S Building permits, less federal contracts $ Bank debits {thousands) . ............$ End-of-month deposits {thousands) i $ Annual rate of deposit turnover... .. . 38,240 35S,462 I2,2I2 8,719 16.4  + 12 -60 -13 -4 -IS  + 37 + 16 + 9 -3 + 10  
HOUSTON (pop. 938,219) itetall ealea .. ... .... ..............• · Apparel stores ......... . ......... . Automotive stores ............... . Drug sto­.. ..... .... ...... . ... . Eating and drinking places...... . . Food storee ........... . .......... . General merchandise stores. ..... .. .  -2t + 2t -st -It -lt -2t + lt  -2 + 6 -lS -3 -4 -8 + 15  + 1 + 1 + 11 -2 •• -5 + 9  KINGSVILLE (pop. 25,297) Postal receipta• ....... . .. .. .... .. .. S Buildinir permits, less federal contracts $ Bank debita {thousands) ........ . ... $ End-of-month deposits (thouaanda) i . $ Annual rate of deposit turnover..... . KIRBYVILLE (pop. 1,660) 12,043 63,965 11,850 I4,051 10.4  -28 -50 +  -7 -37 + 12 + 7 + 6  
Liquor stores  . . .................. .  + 2t  + 8  - 8  Postal  receipts•  ... . .. .. .......... · · S  2,419  -50  -32  
Lumber, building material, and hardware stores............ .  -llt  -21  + 21  Bank debits {thouaands) .............$ End-of-month depoeits (thonsandsli. $ 2,056 2,914  -I3 -4  -8 + 20  
Postal  receipts•  ....... .... ... . . .. .. $ 1,699,672  - 2  + 4  Annual rate of deposit turnover.....  8.3  - 20  -19  
uiiding permita, less federal contracts $24,578,364 Bank debits (thousands) . . .......... .$ 3,066,747 nd-of-month deposits {thousandsH. $ I,447,778 nnual rate of deposit turnover. ..... 2S.7 mployment (area) . . . . . . . . . . . . . . . . 5I8,500 Manufacturing employment {area). 91,750  -14 8 + 2 -8 ••••  + S8 + 7 + 7 + 1 + 1 2  LA FERIA (pop. 3,047) Postal receipts• .............. · · · · · $ Building permits, 11!8'1 federal contracts $ Bank debita {thonaands) .............$ End-of-month deposits {thousands) i . S I.833 11,927 1,193 1,494  -25 +I54 -I2 3  -14 + 11 -15 + 7  
ercent unemployed  {area) .  4.0  +  8  -11  Annual rate of depo9it turnOYer . . ... .  9.5  - 3  -I8  

JANUARY 1963 
Percent change  
Local Business Conditions  Nov 1962  Nov 1962  
Nov  from  from  
City 1 nd item  1962  Oct 1962  Nov 1961  

LA MARQUE (pop. 13,969) 
Postal receipts• ..... .. .. .. . . .. . .. ..S Building permits, less federal contracts $ Bank debits (thousands) .... .........$ End-of-month deposits (thousands>* .. $ Annual rate of deposit turnover.. ... . Employment (area) ... .. . ... ... . .. . 
Manufacturing employment (area) . Percent unemployed (area) ......... . 
LAMESA (pop. 12,438) 
Retail sales Automotive stores . . .. . .. ........ . Postal receipts• ......... ..... ......S Building permits, less federal contracts $ Bank debits (thousands) ....... ......$ End-of-month deposits (thousands) i .. $ Annnal rate of deposit turnover... . . . Nonagricultural placements 
LAMPASAS (pop. 5,061)  
Postal receipts• ........ . ... . . . .... .S  5,443  + 1  + 22  
Building permits, less federal contracts $ Bank debits (thousands). . . . .. .... . . $ End-of-month deposits (thousands) i .. $  8,185 7,780 6,673  -86 4 1  -91 + 20••  
Annual rate of deposit turnover... .. .  13.9  + 20  
LA PORTE (pop. 4,512)  
Bank debits (thousands) ... . .... . ....$  3,385  -17  + 10  
End-of-month deposits (thousands) i .. $  2,317  -18  -12  
Annual rate of deposit turnover. ... . .  15.8  -9  + 9  

LAREDO (pop. 60,678) 
Postal receipts• . . . . ..... ...... .. ...S Building permits, less federal contracts $ Bank debits (thousands) . ... . ... .. ...$ End-of-month deposits (thousands) i ..$ Annual rate of deposit turnover..... . Employment (area) ......... . ... . . . 
Manufacturing employment (area) . Percent unemployed (area) . Nonagricultural placements .. 
LEVELLAND (pop. 10,153) 
Postal receipts• .. . . .. .. ... . ..... . . . S Building permits, less federal contracts $ Bank debits (thousands) ... ....... . . . $ End-of-month del)Osits (thousands) i ..$ Annual rate of deposit turnover.... . . 
LITTLEFIELD (pop. 7,236) 
Retail sales ..... ........ .. ..... .... . Automotive stores ...... ......... . General merchandise stores... .... . . 
Postal receipts• ... ................. S Building permits, less federal contracts $ 
LLANO (pop. 2,656) 
Postal receipts• .... ................ $ Building permits, less federal contracts $ Bank debits (thousands) ..... .. .... .. $ End-of-month deposits (thousands) i ..$ Annnai rate of deposit turnover. .... . 
LOCKHART (pop. 6,084) 
Retail sales 
Automotive .tores . .... .. ....... . . Postal receipts• ..... ........ .......$ Building permits, less federal contracts $ Bank debits (thousands) .. . .... .. ....$ End-of-month deposits (thousands) i .$ Annual rate of deposit turnover. 
7,938 -3 + 39 
222,296 + 131 + 438 
8,243 -5 + 4 
6,249 + 16 -2 

17.0 -11 + 15 
1
52,000 •• 
10,520 1 1 
8.9 + 5 + 5 
-lt + 1 -17 
10,516 -32 -31 199,600 -54 -4 23,835 + 26 -30 18,517 + 11 -20 
16.2 	+ 13 -11 61 -20 -16 
35,702 + 14 + 4 
206,330 -31 + 74 
33,919 2 + 27 
26,142 + 4 + 16 
15.8 -4 + 10 
18,700 •• 
1,270 -1 
10.8 + 30 
300 -40 -32 
2,550 + 5 + 1 
31,600 
+ 265 
3.877 -24 
+ 11 
4,195 -9 1 
10.6 -23 
+ 7 
-lt 
-1 + 22 
3,473 -24 
+ 70 
3,365 + 31 -73 
4,750 
** + 7 
6,246 
+ 2 + 10 

9.2 -3 •• 
Local Business Conditions  Percent change  
Nov 1962  Nov 1962  
Nov  from  from  
City and item  1962  Oct 1962  Nov 1961  

LONGVIEW (pop. 40,050) 
Retail sales ..................•...... 

Food stores ............ . ......... . 

Lumber, bulldlng material, 
and hardware stores........ . ... . Postal receipts• ...... . .............S Building permits, less federal contracta $ Bank debit.I! (thousands) . . . . .........$ End-of-month deposit.I! (thousands>* .. $ Annual rate of depoelt turnover..... . Employment (area) ............... . 
Manufacturing employment (area) . Percent unemployed (area) ......... . 
- lt  
- 3t  
- 9t  

48,326 357,900 48,536 39,783 
14.8 
28,750 5,580 
4.8 
LOS FRESNOS (pop. 1,289) 
Postal receipts• .. .......... ........S Building permits, less federal contract.I! $ Bank debits (thousands) ... ..........$ End-of-month deposit.I! (thousandsJi..$ Annnal rate of deposit turnover..... . 
907 
10,000 1,093 1,231 
10.1 
LUBBOCK (pop. 128,691) 
Retail sales . ....................... . -lt Apparel stores ................... . -lt Automotive stores ........... . ... . -lt Furniture and household 
appliance stores . . . . . . . . . . . . . . . . -1t Postal receipt.I!• . . ..................S 181,997 Building permit.I!, less federal contracta $ 1,969, 722 Bank debits (thouaands) ... ......... .$ 252,257 End-of-month deposit.I! (thouaandsH . . $ 127,067 Annual rate of deposit turnover. . . . . . 24.4 Employment (area) . . . . . . . . . . . . . . . . 53,200 
Manufacturing employment (area) . 6,260 Percent unemployed (area). ......... 3.6 
LUFKIN (pop. 17,641) 
Retail sales 
Automotive stores ............... . Postal receipts• ................. . ..S Building permits, less federal contracte $ Bank debits (thousands) ... ... . ......$ End-of-month deposit.I! (thousandsH.. $ Annual rate of deposit turnover.. ... . Nonagricultural placements . . ...... .
7,900 
147,719 16,995 12,287 
17.5 
lt 1t 
+ 2t 
6,704 49,839 
-18 -20 + 11 + 12 -1 
-15 -30 + 26 + 13 -69 
-1 
+ 23 
2 
3 
-7 -17 
+ 10 
-4 
McALLEN (pop. 32, 728) 
Retail salea . . ...................... . Apparel stores ................... . Automotive stores .. . .. . ..... . ... . Food stores ................... . .. . Furniture and household 
appliance stores ............... . 

Gasoline and service stations. . .... . Postal receipts• . . ..................S Building permits, less federal contracts $ Bank debits (thousands) . ............$ End-of-month deposits (thousands>* .. $ Annual rate of deposit turnover..... . Nonagricultural placements . .. . .... . 
McCAMEY (pop. 3,375) 
Poetal receipts• .................. . . S Bank debits (thousands) ..... ....... . $ End-of-month deposits (thousands>* . . $ Annnal rate of deposit turnover.. .. . . 
McGREGOR (pop. 4,642) 
Building permits, less federal contrac:ta $ Bank debits (thousands) ........... . . $ End-of-month depoeits (thousandsH. . $ Annual rate of depoelt turnover..... . 
-1t 25,709 
132,900 26,661 27,298 
11.9 89 
---- 1t 1t 1t 3t  
-- lt lt  

27,034 158,660 25,622 22,584 
13.3 405 
2,697 l,706 1,981 10.4 
1,000 3,311 5,476 
7.1 
-- 6 3  
-- 4 8  

-52 -5 + 2 -7 
+ 9 
-1 
-2 
-' 
t I -67 + 2 + s -..s -s 
t SS 
- 8  -16  
+158  t  4S  
-24  -7  
- 9  - 20  
-21  t  IS  

+ 11 
+ 4 
+ 
9 

+ 
6 


+ 
5 

+ 
3 


+ 20 
+ 4 
+ 14 
+ 2 
+ 4 
+ 6 
t I 
+ 7 
t I 
+ 
8 

+ 
4 


-SI 
·-..7 
-7 
+ 2 
+17 
-21 
+ 7  +64  
+ 15  +so  
-18  +93  
- 2  + 10  
+ 8  -2  
- 5  + 11  
- 6  -11  

-2 
+ 38 
-15 
+ I 
+ 
39 

+ 
1 


-6 
-23 
- 5  
- 4  
- 3  

-37 
-8 
+ 
11 

+ 
6 


-8 
-6 
+15 
-4 -17 -2 
+15 -11 -'5 
-24 -' 
-15
-26 
•• -6 
-25 -6 
-96
-17 
-10 +11 
-3 +10 
t I
-10 
Percent change Percent change

Local Business Conditions Local Business Conditions 
Nov 1962 Nov 1962 Nov 1962 Nov 196~
Nov from from Nov from from
City nnd item 1962 Oct 1962 Nov 1961 City and item 1962 Oct 1962 Nov 1961 

McKINNEY (pop. 13,763) MONAHANS (pop. 8,567) 
Poetal receipts• ....................S 10,048 -12 -15 

Postal receipts• . .... .. .... ... .. ....$ 7,4-11 -23 -2 
Building permits, less federal contracts $ 62,235 -63 

-32 Building permits, less federal contracta $ 49,350 -72 + 67 
Bank deblts (thouaands) .............$ 11,495 -22 + 6 Bank debits (thousands) ............. $ 10.037 
End-of-month deposit.a (thousandsJi.. $ 10,105 -3 + 7 End-of-month deposits (thousands) i . .$ 7,507 --10 3 
Annual rate of deposit turnover..... . 13.4 -22 + 1 

Annual rate of deposit turnover..... . 15.2 1
-+

Nonagricultural placements 84 -39 -16 
MUENSTER (pop. 1,190) 
MARSHALL (pop. 23,846) Postal receipts• .................. ..S 1,009 -27 -51 
Retail sales .. ...................... . -lt -3 •• Building permits, less federal contracts $ 20,000 -67 +567 

Apparel stores ....... ............ . -lt •• + 12 Bank debits (thouaands) . . . . . . . . . . . . $ 2,190 -17 + 4 
Postal receipts• ....................S 21,072 -16 -10 End-of-month deposits (thousands) i . .$ 2,265 + 9 + 23 
Building permits, less federal contracts $ 169,131 +181 +134 Annual rate of deposit turnover... 12.1 -18 -13 
Bank debits (thousands) .... .........$ 16,990 -3 + 3 
End-of-month deposits (thousands)f.. $ 22,303 + 1 + 3 NACOGDOCHES (pop. 12,674) 
Annual rate of deposit turnover..... . 9.2 •• •• Retail salea 
Nonagricultural placements ... . . . .. . 67 -49 -69 Apparel stores ................. .. . + 8 + 8 

Postal receipts• .... . . .... .. ........S 21,355 + 36 + 39 Building permits, less federal contracts $ 55,120 -96 -96
MERCEDES (pop. 10,940) 
Bank debits (thousands) .... .. . ...... $ 17,345 + 7
Poetal receipts• ..... ........ ...... . S 4,523 -5 -10 

End-of-month deposits (thouaands) i . .$ 18,917 -2 + 22
Building permits, 1""8 federal contracts $ 31,125 -30 -10 
Annual rate of deposit turnover..... . 10.9 -8 -13Bank debits (thouaands) ... ... .. .. . . . $ 5,338 -4 + 3 Nonagricultural placements ... 100 -12 -17
End-of-month deposit.a (thousands)f.. $ 3,980 -12 + 
Annual rate of deposit turnover.. ... . 15.1 + 7 3 

NEDERLAND (pop. 12,036) 
Building permits, less federal contracts $ 168,999 + 13 + 53
MEXIA (pop. 6,121) 
Bank debits (thousands) ...... .. .... .$ 5,293 + 3 
POltal recelpta• ................... . S 5,380 -14 + 11 End-of-month deposits (thousands)f .. $ 3,976 + 6 
Building permits, less federal contracts S 28,000 + 4 + loo Annual rate of deposit turnover... .. . 15.6 

Bank debits (thouaands) ...... . ......$ 3,929 -10 + 7 
End-of-month deposits (thOUlllUlds) i . .$ 4,723 -2 •• NEW BRAUNFELS (pop. 15,631) 
Annual rate of deposit turnover..... . 9.9 -10 -36 Postal receipts• .. ..................$ 19,483 + 16 + 3 

Building permits, less federal contracts $ 50,024 -85 -49 
MESQUITE (pop. 27,526) Bank debits (thousands) . .... ..... . .. $ 12, 181 + 31 
Poetal recelpta• ....................S 10,469 -19 -15 End-of-month deposits (thousands)f.. $ 12,186 -3 + 8 

Building permits, less federal contracts $ 740,860 -33 -61 Annual rate of. deposit turnover.. .... 11.8 •• + 19 
Bank debits (thousands) . ..... .......$ 6,940 2 + 11 
End-of-month deposits (thousands)f.. S 5.920 + 4 -15 NORTH RICHLAND HILLS (pop. 8,662) 

Annual rate of deposit turnover. . ... . 14.4 -8 + 13 Building permits, less federal contracts $ 146,096 7 
Employment (area) . ..... ........ . . 461,600 •• + 2 Bank debits (thousands) .. ........... $ 1,934 + 2 
Manufacturing employment (area) . 102,900 •• End-of-month devosits (thousands)f.. $ l,146 + 4

+ 7 

Percent unemployed (area) .. ...... . . + 21 5 Annual rate of deposit turnover. . . . . . 20. 7 + 37
4.1 

MIDLAND (pop. 62,625) ODESSA (pop. 80,338) 
Retail sales ....... ...... . ... . .. .... . -5 + 4

Postal receipts . . ............ $ 91,450 + 4 -3 

Fumitnre and household

Building permits, less federal contracts $ 2,581,585 +362 + 76 
appliance stores .. .... ......... . 1t + 10 -14


Bank debita (thousands) .............S 122,748 7 + 3 

General merchandise stores....... . + 2t + 4 -6


End-of-month deposits (thousands)f.. $ 98,090 -1 7 Postal receipta• ... .... ...... ... . . ..$ 71,035 -5 + 11Annual rate of deposit turnover. . . . . . 14.9 -7 + 6 Building permits, less federal contracts $ 468,002 -77 -29Employment (area) . . . . . . . . . . . . . . . . 54, 700 •• 
+ 

Bank debits (thousands) .. ...........$ 71,875

Manufacturing employment (area) . 2,670 •• + 15 End-of-month deposits (thousands) t .. $ 71,609 -4 

+

Percent unemployed (area) ..... . .... 3.7 + 19 + 12 Annual rate of deposit turnover..... . 11.8 -7 9Nonagricultural placements . . . . 578 -25 + 
Employment (area) ............... . 54,700 •• + Manufacturing employment (area) . 2,670 •• + 15
MIDLOTHIAN (pop. 1,521) 
Percent unemployed (area) ........ . . 3.7 + 19 + 12 

Bank deblta (thouaands) ...... .. .....S 1,216 
-19 + Nonagricultural placements 384 -35 -42 
End-of-month deposits (thousands)f. $ 1,809 -3 + 
Annual rate of deposit turnover. . . . . . 8.0 -17 ORANGE (pop. 25,605) 
Postal receipts• . . ..... ..... .... ....S 20,434 -26 -18 

MINERAL WELLS (pop.11,053) Building permits, less federal contracts $ 98,539 -73 -24 Postal receipts• .......... , . ........$ 11,064 -21 -7 Bank debits (thou.ands) .............$ so.on 2 + 3 Building permits, less federal contracts $ 507,075 + 19 +642 End-of-month deposits (thousands) i . .$ 25,152 + 1 + 12 Bank debits (thousands) .............$ 11,425 6 + 23 Annual rate of deposit turnover. ... . . 14.4 -6 -8 End-of-month deposits (thousands)f.. $ 13,556 + 1 + 27 Employment (area) ....... . ....... . 107,000 •• + 2 Annual rate of deposit turnover..... 10.2 -7 -1 Manufacturing employment (area) . 34,340 -1 + 13 Nonagricultural placements . . . . . . . . 55 -54 -45 Percent unemployed (area) .. ... .... . 7.3 + 18 + 6 
Nonagricultural placements .. . 319 + 72 + 89 
MISSION (pop. 14,081) PALESTINE (pop. 13,974) 
Poatat receipts• ....................s 8,134 + 2 + 2 Postal receipts• . . ...... .. . . ........$ 13,932 •• -4 Building permits, less federal contracts $ 70,762 + 69 + 53 Building permits, less federal contracts $ 80,035 -43 -63 Bank debits (thouaands) .. .. ..... .. .. $ 10,156 3 + 2 Bank debits (thousands) . . . . . . . . . . . . $ 11,666 -3 -6 End-of-month deposlta (thouaands)f.. $ 8,902 5 End-of-month deposits (thousands) i $ 15,676 •• + 8
+ 

Annual rate of deposit turnover..... . 13.4 Annual rate of deposit turnover... 8.9 -7 -14
+ 4 

JANUARY 1963 17 
Local Business Conditions  Percent change Nov 1962 Nov 1962  Local Business Conditions  Percent change Nov 1962 Nov 1962  
Nov  from  from  Nov  from  from  
City and item  1962  Oct 1962  Nov 1961  Citv and item  1962  Oct 1962  Nov 1961  
PAMPA (pop. 24,664) Retail sales ... . .. ..... . .. . .... .... . Eating and drinking places...... . . Food stores . .. .. . .. .. . .. ......... . Lumber, building material, and hardware stores............ .  1t 6t 3t 9t  -7 -8 -13 -6  -3 + 21 -8 -13  PORT ISABEL (pop. 3,575) Postal reeeipta• ....................$ Building permits, less federal contracts $ Bank debits (thousands) .............S End-of-month deposita (thousanda)t. . $ Annual ra,te of deposit turnover..... . 1,478 17,650 1,317 1,258 11.8  -35 -73 -4 -12 + l  -5 +358 + 24 + 41 -16  
Postal receiptll• .. ..... ..... ...... ..$ Building permits, less federal contracts $ Bank debits (thousands) ... ..... .. . . . $ End-of-month deposits (thousands) i .. $ Annual rate of deposit turnover.. ... . Nonagricultural placements  23.907 43.600 24,400 22,451 13.2 137  + 4 -49 3 + 3 -6 -22  + 9 -33 + •• + 3 + 65  PORT NECHES (pop. 8,696) Postal reeeipta• ....................$ 6,130 Building permits, less federal contracta $ 72,395 Bank debits (thousands) ........ .....$ 7,775 End-of-month deI>OBlta (thouaanda)t.. $ 6,106 Annual rate of deposit turnover.... . . 15.l  - •• 24 4 3 4  -30 + 71 + 7 + 8 3  
PARIS (pop. 20,977)  RAYMONDVILLE (pop. 9,385) Postal receipta• ....................$ 5,147  -24  8  
Retail sales Apparel stores ... . .. . .... ... ... . . . Automotive stores ...... .. .... . .. .  -- lt lt  + 1 + 6  + 4 ••  Building permita, le88 federal contracts $ Bank debits (thousands) .............$ End-of-month deposits (thousanda)t.. $  18, 700 6,214 9,009  9 9 4  + 73 + 4 + 8  
Postal  receipts•  ....................$  17,759  -17  - 1  Annual rate of deposit turnover. . . . . .  8.1  4  5  
Building permits, le88 federal contracts $ Bank debits (thousands) .............$ End-of-month deposits (thousands)t.. $ Annual rate of deposit turnover. . ... . Nonagricultural placements  64,978 19,123 15,335 15.0 93  -72 4 + 1 -7 -55  -76 + 3 + 9 -4 -28  Nonagricultural placements ..... ROBSTOWN (pop. 10,266) Postal receipta• ................. ...$ Building permits, less federal contracts $ Bank debits (thousands) .. ...........$  119 5,098 24,720 9,317  -22 -30 -33 -16  + 3 -19 -34 + s  
PHARR (pop. 14,106)  End-of-month depooits (thousanda)t.. $ Annual rate of deposit turnover..... .  9,901 10.7  9  -8 + 10  
Postal reeeiptll• ....................$ Building permits, less federal contracts $ Bank debits (thousands) .............$ End-of-month deposits (thousandsJi..$ Annual rate of deposit turnover..... . PILOT POINT (pop. 1,254) Building permits, less federal contracts $ Bank debits (thousands) .............$ End-of-month deposits (thousands)t.. $ Annual rate of deposit turnover. . . . . .  5,087 60,713 3,530 3,437 12.3 400 1,254 1.863 8.1  8 + 2 -19 -22 •• -28  -20 + 35 2 + 2 4 + 29 + 8 + 21  ROCKDALE (pop. 4,481) Postal receipts• .............. .... ..$ 3,852 Building permits, less federal contracts $ 2,500 Bank debits (thousands) ... .. ..... . .. $ 4,179 End-of-month deposits (thousands)t.. $ 5,816 Annual rate of depasit turnover. . . . . . 8.6 SAN ANGELO (pop. 58,815) Retail sales ..... ... ................ · Apparel stores . . . . ...... .. . .. .... . Jewelry stores .............. ..... . Postal receipts• .. . . ... .. ......... . . $ 1t lt 67,129  5 -93 -2 -1 •• + 14 -2 + 44 -17  + 13 -58 + 16 + 7 + + -12 + lS -9  
PLAINVIEW (pop. 18,735) Retail sales Automotive stores . .... . .... . .... . Postal receipta• ....... . . .... .......$ Building permits, less federal contracts $  -lt 20,110 304,750  + 9 9 + 4  + 32 -4 + 21  Building permits, less federal contracts $ Bank debits (thousands) .............$ End-of-month deposits (thoaaands) i . .$ Annual rate of deposit turnover..... . Employment (area) .. .. ........... . Manufacturing employment (area) .  497,4SO 53,222 47,636 13.4 20,000 3,140  -72 -12 •• -12 ••••  + 44 2 5 + 2 + 2 + 16  
Bank debits (thousands) . .. ......... . $ End-of-month deposits (thousands) i . .$ Annual rate of deposit turnover.. ... . Nonagricultural placements PLANO (pop. 3,695) Postal receipts• ....................$  43,117 28,519 19.0 220 4,156  + 7 + 10 -4 -19 -9  + 11 + 15 -1 + 15 -17  Percent unemployed (area) ..... .... . 4.4 SAN ANTONIO (pop. 587,718) Retail sales . . . . . . . . . . . . . . . . . . . . . . . . . + lOt Apparel stores . . . . . . . . . . . . . . . . . . . . + 5t Automotive stores . . . . . . . . . . . . . . . . + St Drug stores . . . . . . . . . . . . . . . . . . . . . . St Eating and drinking places. . . . . . . . 1t  -4 •• + 12 -5 •• + l  -10 + + + 20 -l + 18  
Building permits, less federal contracts $  94,666  -48  -78  Food stores  . . . . . . . . . . . . . . . . . . . . . . .  5t  - 6  2  
Bank debits  (thousands) ............ .$  2,432  + 46  + 14  Furniture and houaehold  
End-of-month deposits (thousands)t.. $ Annual rate of depasit turnover. .. .. .  2,262 11.6  -18 + 47  + 4 -3  appliance stores .... . .... ..... . . Gasoline and service stationll.. .... .  + 4t St  -10 -2  + +  
PORT ARTHUR (pop. 66,676)  General merchandise stores........ . Jewelry stores ... ...... .... .. .. .. .  6t  + 22 + 55  + + 12  
Retail sales .. . .. .. .. .. . .. .. .. . .. .. .. Automotive stores . . . . . . . . . . . . . . . . Food stores . . . . . . . . . . . . . . . . • . Furniture and houaehold  1t 1t 3t  -11 -23 + 2  -l + 14 -8  Lumber, building material. and hardware stores.. ........... -llt Postal reeeiptll• .. ........ ... .... ...$ 701,llS Building permits, less federal contracts $ 4,47S,440  -20 -8 + 26  -lS 8 l  
appliance stores . . . . . . . . . . . . . . . . 1t Gasoline and !lel'Vice stationll. . . . . . . 1t Lumber, building material, and hardware stores. . . . . . . . . . . . . 9t Postal receiptll• ... . . ... . .. ....... ..$ 43, 757 Building permits, less federal contracts $ 1,102,506  -15 -11 -8 -19 +232  -22 -5 -19 -21 +377  Bank debits (thoaaanda) ...... . ... ...$ End-of-month deposits (thousanda) i ..$ Annual rate of depaslt turnover. . . . . . Employment (area) . . . . . . . . . . . . . . . . Manufacturing employment (area) . Percent unemployed (area) . . . . . . . . . .  671,420 422,358 19.4 208,400 24,S25 5.2  7 + 8 -9 •• -2 + 16  + 4 + 7 •• +  
Bank debits (thousands) .. ... . ... .. .. $ End-of-month deposltll (thousandsJi.. $ Annual rate of depoolt turnover. . . . . . Employment (area) . . . . . . . . . . . . . . . . Manufacturing employment (area) . Percent unemployed (area)....... . . .  62,881 45,537 16.4 107,000 34,340 7.3  1 -2 -4 •• -1 + 18  2 + 2 + 13 + 6  SAN JUAN (pop. 4,371) Postal rece!pta• ....................$ Building permits, less federal contracts $ Bank debits (thousanda) .............S End-of-month depoolts (thousands)t.. $ Annual rate of depooit turnover..... .  2,47S 12,825 2,215 l,964 lS.7  -19 -S4 + 4 + 2 +  7 + 80 + 8 -8 + 15  

Local Business Conditions  Nov  Percent change Nov 1962 Nov 1962 from from  Local Business Conditions  Nov  Percent change Ney 1962 Nov 1962 from from  
City ~.nd item  1962  Oct 1962  Nov 1961  City and item  1962  Oct 1962  Nov 1961  
SAN MARCOS (pop. 12, 713)  SOUTH HOUSTON (pop. 7,253)  
Postal reoelpts• ................ .. .. S Building permits, less federal contracts $ Bank debits (thousands) .............$ End-of-month deposits (thonsands)t. . $ Annual rate of deposit turnover ..... .  9,375 167,381 7,284 8,953 9.6  -23 -68 -13 -4 -11  -4 +466 + 15 + 12 + 2  Building permits, less federal contracts S Bank debits (thousands) .............$ End-of-month deposits (thonsandsH.. $ Annual rate of deposit turnover..... .  355,684 4,904 3,215 17.8  +263 + 4 5 + 7  +9642 + 27 + 13 + 10  
SAN SABA (pop. 2,728) Postal receipts• ..... ... ....•.......S  2,546  -21  4  SULPHUR SPRINGS (pop. 9,160)  
Bank debits (thonsands) .. . ..........S  5,098  2  6  Retail sales  
End-of-month deposits (thou.sands)t . . $  4,821  + 1  4  Automotive  stores  .............. . .  - lt  + l!  - 6  
Annual rate of deposit turnover.. . . . .  12.7  2  2  Postal  receipts•  . ....... . ...........$  7,986  -19  - 2  
SEAGOVILLE (pop. 3,745) Postal receipts• ....................S  2,671  -41  + 32  Building permits, less federal contracts $ Bank debits (thou.sands) .... . . . . .....S End-of-month deposits (thou.sands)~.. $  49,450 11,734 13,059  -65 4 1  + 40 + 2 4  
Bank debits  (thousands).....  .$  2,390  3  + 20  Annual rate of deposit turnover..... .  10.7  6  + 6  
End-of-month deposits (thousands>* .. $  1,614  + 2  + 19  
Annual rate of deposit turnover... . . .  19.1  7  + 4  
SEGUIN (pop. 14,299) Postal receipts• ........... . ....... . $  9,313  -23  -10  SWEETWATER (pop. 13,914) Postal receipts• ...... . .............$ 9,664  -44  + 2  
Building permits, less federal contracts $ Bank debits (thousands) .. . .... ......$  63,681 9,900  + 66 -14  - 1  Bank debits (thousands) ........... . . $ End-of-month deposits (thousands) f .. $  14,052 10,595  3 + 2  + 2 +  
End-of-month deposits (thousands>* .. $ Annual rate of deposit turnover..... .  14,691 8.1  -- 2 13  * 'lt ••  Annual rate of deposit turnover..... . Nonagricultural placements . ....... .  16.1 91  -8 -30  + 2 -11  
SHERMAN (pop. 24,988)  
Retail sales Automotive stores .... ... . ....... . Furniture and household  lt  + 5  +  TAYLOR (pop. 9,434) Postal receipts• . .. .................S  7,324  -11  - 2  
appliance stores .............. . . Postal receipts• ............ . .......S Building permits, less federal contracts $  1t 30,009 280,230  -17 -1 + 61  + + + 4  Building permits, less federal contracts $ Bank debits (thouaands) .. . .. . ... . ...S End-of-month deposits (thonsands)f.. $  16,600 8,133 14,980  -76 -13 -4  -61 + 13 + 11  
Bank debits (thousands) ...... . ..... . $ End-of-month deposits (thousands>*.. S  32,411 20,162  + - 5  + 31 + 2  Annual rate of deposit turnover..... . Nonagricultural placements  6.4 64  -12 -37  + 3 -4  
Annual rate of deposit turnover. .... .  18.8  + 2  + 26  
Nonagricultural  placements  ... . .  177  - 38  + 21  
SILSBEE (pop. 6,277) Postal receipts• .... .. .......... ... .$ Bank debits (thouaands) . ............$ End-of-month deposits (thou.sands>* .. $ Annual rate of deposit turnover..... .  6,865 4,106 5,557 9.0  -17 6 + 2 8  + 4 + 7 + + 3  TEMPLE (pop. 30,419) Retail sales .... .... ............... .. Apparel stores ................... . Furniture and household appliance stores ... . ....... •.... Lumber, building material,  lt  + 4 + 8 + 4  + 14 + 10 -2  
SINTON (pop. 6,008) Postal receipts• ...... .... .. ........S Building permits, less federal contracts $ Bank debits (thousands) .............$ End-of-month deposits (thonsands) f ..$  4,765 45,800 4,779 5,403  -5 +6443 -4 + 15  -18 +394 + 15 + 14  and hardware stores. . .......... . Postal receipts• .. . .................$ Building permits, less federal contracts $ Bank debits (thou.sands) . . .......... .S Nonagricultural placements  9t 32,567 310,835 27,656 134  2 -19 -27 -4 -62  + 21 -8 -56 + 10 -20  
Annual rate of deposit turnover...  11.4  - 1  + 12  
SLATON (pop. 6,568)  TERRELL (pop. 13,803)  
Postal receipts• .. .. ................$ Building permits, less federal contracts $ Bank debits (thouaands) .. ...........$ End-of-month deposits (thou.sands)t.. $ Annual rate of deposit turnover..... . Employment (area) .... ... ........ . Manufacturing employment (area) .  3,270 96,212 4,117 4,123 12.6 53,200 6,260  -29 +272 -3 + 12 -10 + 2 + 4  -22 +712 -10 7 -3 + 2 + 17  Postal receipts• .. .......... ...... ..$ Building permits, less federal contracts S Bank debits (thousands) .. .. . ... . . . ..S End-of-month deposits (thousanda)f..$ Annual rate of deposit turnover..... . Nonagricultural placements  8,705 37,460 8,063 8,491 11.3 51  -21 -97 -11 -1 -14 -50  + 3 -70 + 7 + 13 -3 -28  
Percent unemployed  (area) ...... .  3.6  +  6  -23  
SMITHVILLE (pop. 2,933)  TEXARKANA, TEX. (pop. 30,218)  
Postal  receipts•  ....................$  1,577  -38  -20  Retail aales  
Building permits, less federal contracts $  750  - 91  -81  Furniture and household  
Bank debits (thousands)... . . . $ End-of-month deposits (thousands) f .. $ Annual rate of deposit turnover... .. .  l,124 2,303 5.9  -11 + 1 -11  -- 1 •• 2  appliance stores . . . . . . . . . . . . . . . . Postal receipts•§ .... . .............•.S Building permits, less federal  -1t 67,809  + 13 -9  + 32 + 2  
SNYDER (pop. 13,850) Pootai receipts .................. .. · S Building permits, less federal contracts $ Bank debits (thonsands) ..... . .......$ End-of-month deposits (thonsanda) i . .$ Annual rate of depoBit turnover. .... .  9,676 26, l 70 14,055 19,392 9.1  -31 -71 + 9 + 9 2  -19 +1439 3 +  contracts§ ... . . . ..................S Bank debits (thousands) t..... .. .. End-of-month deposits (thousandsJi§ .$ Annual rate of deposit turnover§ . Employment (area) . . . . . . . . . . . . . . . . Manufacturing employment (area). Percent unemployed (area) ..........  237,170 58,851 17,535 18.1 31,100 5,450 6.4  +108 -11 •• -3 •• 1 + 7  -16 + + 1 + 8 + 4 + 27 -16  
JANUARY 1963  19  

Local Business Conditions  Percent change Nov 1962 Nov 1962  
Nov  from  from  
City and item  1962  Oct 1962  Nov 1961  

Local Business Conditions  Percent change Nov 1962 Nov 1962  
Nov  from  from  
City and item  1962  Oct 1962  Nov 196!  


TEXAS CITY (pop. 32,065) 
Poatal receipts• .............. ......• 21,531 2 + 8 Building permits, less federal contracta $ 286,725 + 1 + 15 Bank debits (thousands) ...... .. .....$ 23,043 + 6 -15 End-0f-month deposits (thousands) i ..$ 14,676 + 3 -15 Annual rate of deposit turnover.... . . 19.1 + 4 4 Employment (area) .......... . .. . . . 52,000 •• 1 
Manufacturing employment (area) . 10,520 1 1 Percent unemployed (area) . . ....... . 8.9 + 5 + 5 
TOMBALL (pop. 1,713) 
Building permits, less federal contraeta S 8,100 -96 Bank debits (thoa11&11da) .. ...........• 6,818 -18 -8 End-0f-month deposits (thoaaandsli. . $ 5,750 -4 + 6 Annual rate of depoelt turnover..... . 18.9 -13 -12 
TYLER (pop. 51,230) 
Retail aales ... . .................... . 1t -6 2 

Apparel stores .... . ........ . .. .•.. 1t + 12 + 6 

Automotive stor4!11 . ..... . .. ... ... . lt -9 3 

Postal receipts .....................• 90,137 -3 + 

Building permits, less federal contracta • 442,395 -68 -16 
Bank debits (thoaaanda) ... . . ........• 96,814 4 + 4 

End-0f-month deposits (thoUll&llds) i ..S 63,557 -2 + 2 
Annual rate of depoelt turnover..... . 18.1 -4 + 2 
Employment (area) . . .... .. ...... .. 31,100 •• 
Manufacturing employment (area) . 7,020 -2 

Percent unemployed (area) .. ...... . . 4.6 + 21 
Nonagricultural placements .... . .. . . 617 -83 -26 
UVALDE (pop. 10,293) 
Postal receipts• ....................• 7,116 -20 -3 Building permits, lell8 federal contracts S 64,274 -70 -22 Bank debits (thoueanda) ... . . ........• 12,706 -10 + 50 End-0f-month deposits (thouaandali. . $ 8,864 5 -1 Annual rate of deposit turnover.... . 16.8 -5 
+ 51 

VERNON (pop. 12,141) 
Poatal receipts• ....................S 9,48& -11 -11 Building permits, less federal contracta S 98,925 + 37 -12 Bank debits (thOUll&llda) . .... .. .. ... .$ 16,913 + lS 16
-
End-0f-month deposit. (thoUll&llda)i . . $ 18,607 -2 

-6 Annual rate of depaelt turnover..... . 10.8 + 13 -11 Nonagricultural placements 55 -5 -42 
WACO (pop. 103,462r) 
Retail sales .. . . . . .. . .. .. .. .. .. . .... . 1t 
Apparel stores . . . . . . . . . .. .. .. .. .. . 1t 
Lumber, build.Ing material, 
and hardware atoree............. 9t Postal receipts• ....................• 173,966 Building permits, leas federal contracta S 1,048, 797 Bank debits (thousands) . ............S 112,003 End-0f-month deposit.a (thouaanda) i .. S 75,463 Annual rate of deposit tamover... ... 18.1 Employment (area) . . . . . . . . . . . . . . . . 49,600 
Manufacturing employment (area) . 10,220 Percent unemployed (area) . . . . . . . . . . 5.2 
WEATHERFORD (pop. 9,759)  
Postal  receipts•  ....................$  9,134  - 6  - 10  
Building permits, less federal contracts S  40,875  -66  - 64  
End-0f-month depo•its (thOUllandali..S  13,686  + 6  - 10  

WESLACO (pop. 15,649)  
Retail ll&les  
Automotive  stores  ............... .  - lt  - 9  -19  
Food atores  ...................... .  - St  + 1  - 6  
Postal receipta• ....................• Building permits, le118 federal contraeta S  8,142 64,440  -13 + 80  + 1 -21  
Bank debits  (thoaaanda) ............ . $  6,182  -13  +  
End-0f-month depoeitll (thouandali.. $  7,855  s  
Annual rate of deposit turnover..... .  9.9  - 8  +  

WICHITA FALLS (pop. 101,724)  
Retail sales  . . . . . . . . . .. .. .. .. .. .. .. ..  1t  + 11  +H  
Apparel stores .. . .. ..... .. . .. .. .. ..  1t  + lS  - 3  
Automotive lltors  . .. .. .. . . . • .. .. .  1t  + 3  + 29  
Eating and drinking placell. .......  St  - 1  +  
Furniture and houaehold  
appliance  stores  .. .. .. .. . .. .. .. .  It  -10  6  
P09tal  receipt.  .....................$  184,809  -14  + 4  
Building permita, leu federal contract. S 1,455,453  + 64  + 78  
Bank debits (thoullanda)...... ... ... .• End-0f-month depoaitll (thowrandllH . . S  117,864 98,950  - 4••  s 6  
Annual rate of deJ)Oldt turnmer. . . . . . Employment (area) . . . . . . . . . . . . • . • .  15.1 45,850  - s ••  + +  
Manufacturing employment  (area) .  3,910  - 2  + i  
Percent unemployed  (area) . . . . . . . . . .  4.6  + 10  -IS  

6 -32 
+ 8 
+ 83 
-9 
+ 4 
-12 
+ 18 
+ 
10 

+ 
16 

+ 
10 

+ 
29 


-5 
+ 
3 

+ 
6 


2 
+ 
+ 
7 

LOWER RIO GRANDE VALLEY (pop. 352,086) VICTORIA (pop. 33,047) (Cameron, Willacy, and Hidalgo Counties) 
Retail sales ... .. .................. .. It -6


Retail aalea ....... .. ........ .... .. .. 

1t 4 2 
Apparel store11 .................. .. 1t +SS


Automotive stores ............... . +

1t 6 4 
Food atores ...................... . St 4 + 7 

Automotive stores .... ........... . lt -14 
Drug stores ..................... .


Poatal receipts• ....................• 36,804 + 3 2 5t + 5 + 

Food stores ..................... .. St -2 2


Building permits, leas federal contracts S 219,355 -56 -89 Furniture and houaehold
Bank debits (thou11&11da) .............S 64,944 

-4 + 9 

End-0f-month deposit. (thou.sands) i ..$ 79,729 •• + 3 appliance stores ............... . 1t + 17 Annual rate of deJ,>Oait turnover. 9.8 -6 
Guoline and aervice lltatlone...... . lt -7 + 12
+ 5 

Nonagricultural placements ... -58 General merchandlae stores........ . + 2t + Sl -3

361 -40 

Jewelry stores .. .... ............. . + 69 + 76 Lumber, building material, WAXAHACHIE (pop. 12,749) and hardware .tores.. .. ........• -9t -14 + 18 Office, store, and echool 
Postal receipts• ....................$ 12,699 -2 

+ 1 aupply dealen ................. . + 23 -l4 

Building permits, les11 federal contracta • 1,550 -97 
-89 Postal receipt.a• ................... .. -lS -8 
Bank debits (thousands) . .... . .......S 9,589 -26 

-13 Building permits, la!S federal contract.. -17 -65 End-0f-month deposits (thon11&11dali .. $ 10,179 -17 -7 Bank debits (thOUBanda) . ..... . -10 •• 
Annual rate of depoelt turnover. 
10.2 -12 -8 End-0f-month deposlta (thouaanda) i. 5 + 7 Nonagricultural placements 
61 -26 -35 Annual rate of deposit turnover. 14.2 -8 -7 
BAROMETERS OF TEXAS BUSINESS 

All figures are for Texas unless otherwise indicated. All indexes are based on the average months for 1957·59, except where indi­cated; all are adjusted for seasonal variation, except annual indexes. Employment estimates are Texas Employment Commission data in cooperation with the Bureau of Labor Statistics of the U. S. Department of Labor. The index of Texas business activity is based on bank debits in 20 cities, adjusted for price level. An asterisk (•) indicates preliminary data subject to revision. Re•-ised data are marked (r) . 
Year-to-date average
Nov. Oct. Nov. 
1962 1962 1961 1962 1961 

GENERAL BUSINESS ACTIVITY  
Texas business activity, index . .... .. ..... . .. ....... . .............. . Miscellaneous freight carloadings in SW District, index... .... . ... .. . . Ordinary life insurance sales, index .... . . .. ........................ . Wholesale prices in U. S., unadjusted index .. . ... . .... ... ..... .... .  131.3• 81.l 136.5 100.7  128.1 77.8 129.5 100.7  125.4 77.5 126.l 100.0  129.5 76.9 115.8 100.6  117.6 92.2 107.9 100.3  
Consumers' prices in Houston, unadjusted index ................... . Consumers' prices in U. S., unadjusted index ....................... . Business failures (number) .... ... . . ... . ... .... ...... . . . .. .. .. ... . . Newspaper lineage, index .... . .......... . .. .. ..................... .  104.5 106.0 51 107.7  106.0 65 101.0  103.9 104.6 41 104.2  104.6 105.4 44 103.9  102.6 104.2 48 100.3  
TRADE  
Total retail sales, index . .......................................... .  113.8•  116.3r  109.4r  
Durable-goods sales,  index . . .. .......... .. ........ . ........... .  121.3•  131.7r  ll1.3r  
Nondurable-goods sales, index............. . . . .............. ... .  109.9•  108.4r  108.8r  
Ratio of credit sales to net sales in department and apparel stores ... . Ratio of collections to outstandings in department and apparel stores.  76.7 37.7  74.7 37.8  76.9r 39.3r  73.3 37.3  73.3 38.1  
PRODUCTION  
Total electric power consumption, index ........................... . Industrial electric power consumption, index. . .. . .. .... ... . . ... ... . Crude oil production, index............................ -.. .. . . .. .. .  143.7• 132.5• 91.8•  141.0 127.7 92.2r  122.4 114.0 92.l  135.6 125.3 92.3  117.5 108.l 92.0  
Crude oil runs to stills, index . . ... . .... ........ ... ..... . .........•.  110.3  111.7  99.9  109.7  104.2  
Industrial production in U.S., index ............................... .  119.5  119.5  114.8  118.2  108.8  
Texas industrial production-total index .... . ...................... .  114  112  109  112  107  
Texas industrial production-manufacturing index .................. .  124  122  118  122  114  
Texas industrial production-durable goods, index. ... ..... . . .. ..... .  117  117  114  117  109  
Texas industrial production-nondurable goods, index ............... .  130  125  121  127r  118  
Texas mineral production, index ............. . . .......... .. ....... .  100  99  96  98  97  
Average daily production per oil well . . ... .. ... .................... .  12.3  12.3  12.7  12.5  12.8  
Construction authorized, index .................................... .  134.6  124.9  119.7  124.7  112.9  
Residential  building,  index ................................... .  130.0  118.4  115.0  118.7  102.6  
Nonresidential building, index ....... . .. . .................... . .  139.1  133.3  127.1  135.2  129.2  
AGRICULTURE  
Prices received by farmers, unadjusted index  (1910-14=100) . . .. . ... .  263  261  265  261  255  
FINANCE  
Bank debits, index ............................................. · · ·  132.2  129.0  125.4  130.2  117.9  
Bank debits, U. S., index..... . ... ... . . ... ........ .. .... .. . .. ... •••  142.7  144.l  131.9  137.2  124.4  
Reporting member banks, Dallas Reserve District: Loans (millions) ... ..... . .. . ........ ... . . .. . . . . ........ . . . · · · Loans and investments (millions) ................... . . . ....... . Adjusted demand deposits (millions) .......................... . Revenue receipts of the State Comptroller (thousands) ............. . Federal internal revenue receipts (thousands) ...................... .  $ $ $ 3,495 5,597 2,916 $143,947 $471,655  $ $ $ 3,410 5,517 2,845 $113,438 $167,531  $ $ $ 3,191 5,136 2,860 $119,219 $385,261  $ 3,347 $ 5,392 $ 2,861 $126,728 $335,741  $ 3,050 $ 4,977 $ 2,761 $105,948 $289,424  
LABOR  
Total nonagricultural employment  (thousands) ......... .. . . .. . .... .  2,579.I •  2,578.8r  2,537.4  2.554.5  2.518.1  
Total manufacturing employment (thousands) ........ . ....... . . Durable-goods employment (thousands) ...... ... ... . .. .... . Nondurable-goods employment (thousands) . .. ....... . .... .  488.1 • 236.3• 251.8•  489.7r 236.7r 253.0r  485.1 234.0 251.l  490.5 236.9 253.5  483.2 230.5 252.6  
Total nonagricultural labor force in 18 labor market areas (thousands) Employment in 18 labor market areas (thousands) .............. . Manufacturing employment in 18 labor market areas (thousands)  2.357.1 2,182.7 389.6  2,355.0 2,183.6 391.6  2,345.1 2,151.5 377.8  2,345.2 2,171.8 393.5  2,330.7 2,130.9 382.4  
Total unemployment in 18 labor market areas  (thousands) . .... .  111.l  99.9  115.5  107.6  125.3  
Percent of labor force unemployed in 18 labor market areas .... .  4.7  4.2  4.9  4.6  5.4  
Average weekly earnings-manufacturing, index . . ................ . . . Average weekly hours-manufacturing, index ...................... .  111.7• 100.6"  110.9r 99.8r  110.8 100.8  111.2 100.7  107.4 99.8  

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CONTEMPORARY ADJUSTMENTS IN 
MANAGERIAL DECISION-MAKING AND PLANNING 
William H. Newman 

J. Anderson Fitzgerald Lectures No. 3 . . ...........$1.00 

The third in the annual lecture series named in honor of the former dean of the College of Business Administration of The University of Texas is devoted to the important process of decision-making and the executive qualities need­ed for rational, effective decisions. Professor Newman has explored in this discussion the contemporary adjustments which face present-day executives in a world of shifting emphases and values. The growing complexity of modern business enterprise has increased the importance of de­cision-making, and the executive qualities needed for ra­tional, effective decisions should be developed wherever possible. It was, therefore, appropriate that this year's lectures in the Dynamics of Business Enterprise be devoted to managerial decision-making and planning. 
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