Full text of H.16 Capital Market Developments : August 22, 1957

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Not for Publication

DECONTROLLED AFTER SIX MONTHS
August 22, 1957

H.Ik
CAPITAL MARKET DEVELOPMENTS

(Including Monthly Review of Source and Uses
of Funds of Financial Intermediaries).
The volume of public security financing was moderate last
week, but is expected to be much larger this week, particularly for
corporate securities. During the week ending August 16, a single
corporate offering for $18 million and State and local government
issues totaling $98 million were sold. This week, corporate issues,
including expiration of subscription rights, with aggregate proceeds
of $210 mill ion are expected. State and local government issues amounting to $85 million are also scheduled for sale.
Bond yields - Bond yields increased moderately last week for
all types of outstanding bonds, continuing the advance that had temporarily halted in mid-July.
The Pacific Telephone and Telegraph Company's debenture issue
this week was offered to the public to yield it.95 per cent, 72 basis
points above that for a similar offering made by this company last
August. Yields on outstanding Aa public utility bonds have increased
75 basis points over this 12-month period.
Amount
(millions
of
dollars
Aug. 22, 1956
Aug. 21, 1957

78.0

90.0

Maturity

1988
19-80

Coupon
rate

h 3/8

Yield
New
issue

Outstanding

ii.23
a. 95

3.50
ii.25

Stock market credit - Customer credit in the stock market
(excluding that extended on U. S. Government securities) declined
during July, reaching a level of $U,00lt million at the end of the
month. The decline of $27 million occurred largely in bank loans to
"others". Net debit balances also declined slightly, after showing
a substantial increase in June. Borrowing by member firms of the New
York Stock Exchange maintaining margin accounts (except borrowings on
U. S. Government securities) declined during July after increasing in




H.lii

the three previous months. Customers1 net free credit balances continued to increase,, totaling $829 million at the end of the month.
These and other data on stock market credit for July and June are
shown in the following table.
End of month
July

June

Change

(Millions of dollars)
Customer credit
Excluding U. S. Govt, securities - total
Net debit balances
/
Bank loans to "others"
Net debit balances secured by U.S. Govt, securities
Bank loans to others for purchasing or carrying
U. S. Government securities
Broker and dealer credit
Money borrowed except on UeS„ Govt, securities
On customer collateral
Money borrowed on U.S. Government securities
Customers' net free credit balances
c/ Corrected.

h,00i*
2,885
1,119
. 32

1,031
2,887
1,1 hh
c/ 31

-27
- 2
-25
+ 1

23

c/ 25

- 2

2,078
1,874
59
829

2,10k
1,872
52
820

-26 .
+ 2
+ 7
+ 9

Stock prices - Stock prices, as measured by the SEC index of
265 common stocks, declined 6.3 points last week, closing at 275»8 on
August 16. Trading activity remained low with the daily volume averaging
1.8 million shares. Daily figures through Wednesday of this.week indicate a sharp decline in prices on Monday with partial recovery on Tuesday
and Wednesday.
.
Institutional investors - In June, savings capital at savings
and loan associations increased more rapidly than a year ago for the
first time this year, while increases in deposits at mutual savings
banks and life insurance company assets continued to lag behind last
year. The investment pattern of the respective institutions showed
little deviation in June from that of recent months, except that life
insurance company net acquisitions of business securities increased more
rapidly than earlier.
Over the first six months, the combined growth in savings
at these three major savings institutions was 7 per cent smaller than
during the corresponding period of 1956. This growth — measured by
the net increases in life insurance company assets, savings capital at
savings and loan associations, and deposits at mutual savings banks —
amounted to $5,9b5 million this yearj, as compared to $6,UlO million a




-H.lU

- 3 -

year earlier. Savings lagged behind 1956 rates at each of the institutions, with mutual savings banks showing the.largest percentage decline.
In contrast to developments in the three types of institutions noted
above, savings and time deposits at commercial banks have increased
much more rapidly this year than in the first six months of last year.
The increase in life insurance company assets during the
first half of 1957 amounted to $2,1+20 million, about 9 per cent less
than a year ago. Net liquidation of U. S. Government securities was
about half as large as in the first half of 1956. The increase in life
insurance company holdings of mortgages has been smaller in each month
this year than in the comparable period last year — with the increase
in the first half of 1957 being one-third smaller. Earlier in the year,
business security holdings were increasing less rapidly than they did
in 1956, but the increases in recent months have offset this lag; for
the whole first half, the increase was as large as in 1956.
The net increase in savings capital at savings and loan
associations in the first six months was $2,61|8 million, h per cent
smaller than a year ago. Funds invested in mortgages were smaller than
a year earlier, while holdings of U. S. Government securities increased
slightly more during the first half of 1957 than they did last year.
The growth in deposits at mutual savings banks was $877 million,
about 12 per cent below last year. Net liquidation of U. S. Government
securities by savings banks was one-third smaller this year than in the
corresponding half of 1956. Net acquisition of mortgages was smaller —
about 1+0 per cent less, whereas net purchases of business securities
were over three times larger than last year.
More detailed information concerning recent capital market
developments is presented in the attached exhibits.

Business Finance and Capital Markets Section,
Division of Research and Statistics,
Board of Governors of the Federal Reserve System.




/ ' EXHIBIT A

HIGH-GRADE BOND YIELDS

Spread between
State and
U. S. Govt.
govt. (old aeries) and
Hew series local
Aaa y
Corporate I State and
Aaa |local Aaa

U. S. Govt., long-term jj
Corporate
Aaa 1/

Old series

(Per cent)
3.142 (6/19) 3.15 (6/6)
2.78 (12/26)
2.7li(l/9)

n.a.
2.73 (6/25)
n.a.
1.98 (1/8)
n.a.
2.21 (6/10)
n.a.
1.90 (9/2)
3.03 (8/5) 2.3h (9/8)
2.91 (2/7)
2.89 (6/10) 2.05 (5/26)
3.79 (12/28) 3.U9 (12/21) 3.39 (12/28)3.05 (12/27)
3.07 (3/2) 2.80 (2/17) 2.92 (2/3) 2.17 (2/23)
1.09 (8A6) 3.70 (6/21) 3.66 (8/16) 3.37 (8/15)
3.66 (V12) 3.15 (2/8)
3.22 (2/8) 2,76 (2/21)

WW

3.98
li.Ol
U.05
U.07
1.09

3.63
3.68
3.6U
3.62
. 3.66

1:11

3.62

1:11

.38

.8U
.29

S

.13
•5U

3.Hi

.35

11
3.37

:«

1
.32
.•s

1/ Weekly average of daily figures. Average term of bonds Included is 25-26
2/ Weekly averages of daily figures. The old series includes fully taxable,
marketable 2 1/2 per cent bonds due or first callable after 12 years through
September 1955» and those due or callable in 10-12 years thereafter; the average
term to first call of the bonds included declined from 11* years in early 1953 to
11 1/2 years in early 1956. The new series is comprised of the 3 per cent bond
of 1995 and the 3 1/U per cent bond of 1978-83.
y Thursday figures. Only general obligation bonds are included; average
term is 20 years.
Note.—Highs and lows are for individual series and may be on different dates
for different peries.




EXHIBIT B

LOWER - GRADE BOND YIELDS

W

Corporate
Baa 1/

State and
local govt.
Baa 2/

State and
local govt,
rev. j/

(Per cent)
1953 - High

1956 - High
Low
1957 - High
Low

3.89 (9/18)
3.50 (1/2)
3.74 (1/8)
3.hb (12/31)
3.63 (12/30)
3.45 (1/1U)
U.ltl (12/28)
3.58 (3/9)
ii.82 (8/16)
h.h2 (1/12)

3.79
2.96
3.32
2.93
3.26
3.02
4.22
3.20
4.43
3.90

July 19
July 26
August 2
August 9
August 16

h.72
h.7h
li.76
4.78
ii.82

4.28
4.30
h.30
4.41
4.43

195k - High
1955 - High

(6/25)
(1/8)
(1/7)
(8/5)
(12/29)
(1/6)
(12/27)
(3/8)
(8/15)
(2/21)

3.27 (6/26)
2.71 (1/2)
3.00 (1/1)
2.72 (8/13)
2.99 (12/30)
2.76 (1/7)
3.98 (12/28)
2.89 (2/21*)
3.98 (l/li)
3.70 (2/22)
y

-

%/ Weekly average of daily figures. Average term of bonds
included is 25-26 years.
2/ Thursday figures. Only general obligation bonds are included; average term is 20 years.
3/ Friday figures. Average rating of bonds included is
between Baa and A; average term is 20 years.
h/ Series discontinued, as of March 15.Note.—Highs and lows are for individual series and may
be on different dates for different series.




STOCK MARKET

Common
DM.

Stock price
index 1/

volume 2/
(millions
yields y
of shares) (per cent

Stock market customer credit
Total

Customers'
debit balances h /

loans to
"others" 5/

(Millions of dollars)

1953 - High
Low
195b - High
Low
1955 - High
1956 - High
Low
1957 - High
June
July
August 2
August 9
August 16

167.1 (1/2)
1M.0 (9/18)
221.lt (12/31)
156.5 (1/6)
270.7 (12/30)
217.U (1/Ht)
295.5 (8/3)
257.U (1/20)
29U.6 (7/12)
260.3 (2/8)

2.5
0.9
3.7
1.1»
1*.6
1.5
3.1
1.5
2.7
1.6

5.88
• 5.15
5.1i9
ln09
U.23
3.59
1.13
3.65
14.28
3.67

286.2
292.0
286.3
282.1
275.8

2.2
2.2
1.8
1.9
1.8

3.79
3.75
3.76
3.814
3.95

2,U45
2,055
3,1436
2,1405
1**030
3,537
14,0147 .
3,9U4
14,031
'3,832

1,665
1,3114
2,388
1,653
2,805
2,517
2,823
2,710
2,887
1,713

780
661*
1,0148
7I46
l,2la
1,018
1,267
1,155
1,163
1,117

14,031
U,00l4

2,887
2,885

n.a.

n.a.

l,ia
1,119
1,119
1,117
n.a.

n.a.—Not available.
1/ SEC Index of 265 common stocks, weekly closing prices, 1939-100; converted
to 19a7-U9"100 by Federal Reserve. The conversion factor is 123.91.
2/ Averages of daily trading volume on the New York Stock Exchange.
3/ Moody's 125 industrial stocks; .weekly data based on Friday.
y End of month figures for member firms of the New York Stock Exchange which
carry margin accounts; excludes balances secured by U. S. Government obligations.
j>/ Wednesday figures for weekly reporting member banks. Excludes loans for
purchasing or carrying U. S. Government securities at banks in New York and Chicago.
Weekly reporting banks account for about 72 per cent of loans to others.
Note.—Highs and lows are for individual,series and may be on different dates
for different series.




1
H.lU
Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
New Capital
1957
January
February
March
April
May
July
August
September

1,063
1,071
l,3Wi
92b

771
1,W9
e/1,075
e/900

October
November
December
1st
2nd
3rd
Uth

quarter
quarter
quarter
quarter

1st half
Three quarters
Year

3,1*79
3,18k

6,663

1

Corporate
1956
|'

1955

1957

535
Ii07
1,223

685
566
1*99

818
1,11,6
811

1*78
886
687

1,063
651.
838

670

573
=712
817

.

597

6a

1955

l*0l*
696
390

535
312
538

762
528
e/360

378
U90
735

1*27
350
61i2

e/L80

376
199
333

1*06

S/hl 5

7U5 .
1,0895/
1,088

1,162!/
632
900

2,102
2,805
2,5#
2,922

2,165
2,052
1,911
2,695

1,750
e/1,670

U,907
7,1.63 .
10,381:

a,216

e/3,l*20

6,127
8,821

State and local
1
1956
I

- 6L5
311
126

1,190
1,603
908
1,382
3,093
1|,001
5,383

U70
2b9

919
6$8
108
1,385
1,1*18
1,12k

1,981* :
2,803
3,927
5,911

Excluding finance companies
1st
2nd
3rd
Uth

quarter
quarter
quarter
quarter

3,268
e/2,881*

Year

1,61*7
2,511
2,216
2,826

1,727
1,870
1, W *
2,551

9,259

7,595

e/ Estimated.
1/ Includes $637^2 million AT&T convertible debenture issues.
2/ Includes $571*5 million AT&T common stock issues.
3/ Total new capital issues excluding offerings of sales and consumer finance
companies.
Note.—Details may not add to totals due to rounding.




.

H.l1*

Exhibit B
Large Public Security Issues for New Capital
(Other than U. S. Treasury) 1/
Proceeds of Large Issues Offered
(Millions of dollars)

Corporate

Month

1956 - July
August
September
October
November
December
1957 - January
February
March
April
May
June
July

State and
local government
164
35
181*
383
135
201
386
306
19U
1*99
21*8
176
265

592
217
558
386
701
U30
567
671
788
1*77

329
877
#5

Other I/

37
35
100
50
125
25
39
25

Large Individual Issues Offered August 1 through 16

Type J/

Coupon
Amount
(millions Maturity rate or
Offering Rating
net inter- yield
of
est cost
dollars)

CORPORATE
Minneapolis-Honeywell
Regulator Company
Associates Investment Co.
General Motors Acceptance
Corporation
Northern States Power Co.

Common stk.
Deb.

2n.k
50.0

1977

5 l/l*

5.25

Deb.
100.0
1st arfcg. bds. 18,0

1977
1987

5
5

5.20
5.00

Aaa

STATE AND LOCAL GOVERNMENT
State of Connecticut
Du Page Co. H.S.D. No. 88,
California
Sacramento Unif. S.D.,
California
Chicago, Illinois




G.R.

35.0

1963-97/65

3.61

2.80-3.65

Aaa

G.O.

7.9

1958-76

1*.23

2.80-1*. 25

A

7.0
39.6

1959-82
1959-76

3.1*9
3.81*

2.50-3.55
2.85-3.85

Aa
A

G.O. .
G.O.

E-2

fl.lU

Large Individual Issues Offered August 1 through 16 (Cont'd)

Issuer

Type 2/

Amount
Coupon
Offering
rate or
(millions
Maturity
net
inter- . yield Rating
of
dollars)
est cost

STATE AND LOCAL GOVERNMENT
(Cont'd)
Los Angeles City Sch.
Dists., California
New York, New York
Tampa, Florida
Dade Co., Florida

G.O.
kh.O
G.O.
UO.O
Utilities rev. 6.3
G.O.
7.5

1958-62
1958-72
1958-86/6?
1959-78

3.97
3.77
I1.6O
iu50

2.80-3.90
2.75-3.80
3.OO-I1.6O
3.10-L50

Aa
A
A
A

OTHER
None
State and local government security offerings of $5 million and over.
2/ Includes foreign government and International Bank for Reconstruction and
Development issues.
y In the case of State and local government securities, G.O. denotes general
obligation; Rev., revenue bonds; G.R., general obligations additionally secured by
facilities revenues; L.L., limited liability obligations secured by pledge of
designated revenues.




ID

Exhibit F

H.lU

Forthcoming Large Public Security Offerings for New Capital
(Other than U. S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues
Subsequent to
date shown

During month following
date shown

Date of
computation

Corporatel^^J

- July 31
Aug. 31
Sept. 28
Oct. 31
Nov. 30
Dec. 31
— Jan. 31
Feb. 28
Mar. 29
Apr. 30
May 31
June 28
July 31

21*7
369
315
683
136
1*76
591
7I1O
1*61
187
525
370
526

—w ;

131
359
162
•1*8
280
153
153
290
179
97
172
252

Other 2/jCorporate
37

23
- 100
35
25
25
25
—

1,096
1,202
1,009 ^
990
1*81
796
966
795
1*86
258
525
1*15

811

Other 1/
726
958
1,197
955
979
763
61*8
631
862
396
388
1*98
511*

37

23
100
-35
25
25
25

Forthcoming Large Offerings, as of August 16
Issuer

Type

Amount
(millions Approximate date
of offering
of dollars)

CORPORATE
J. Ray McDermott and Co.

Conv. sub. deb.

Atlantic Refining Co.
Pacific Telephone & Telegraph Co.
Thompson Products, Inc.

Conv. sub. deb.
Deb.
Conv. sub. deb.

aWestcoast Transmission Co., Ltd.
Tampa Electric Co.
Duke Power Co.
El Paso Natural Gas Co.

1st & ref.
mtg. bds.
1st & ref.
mtg. bds.
Sub. deb.
1st mtg. bds.
S. F. deb.
Conv. deb.

«New Jersey Bell Telephone Co.
Consolidated Natural Gas Co.
•Pacific Power & Light Co.
Pacific Telephone & Telegraph Co.

Deb.
Deb:
1st mtg. bds.
Common stk.

*Speriy Rand Corp.
American Telephone & Telegraph Co.

S. F. deb.
Deb.

Southern California Edison Co.
Public Service Electric & Gas Co.




20.3
100.0 .
90.0
19.7

August 20
(rights expire)
August 20
August 21
August 27
(rights expire)

1*0.0

August 28

60.0
25.0

August 29
September 5
September 6
September 11
September 11
(rights expire)
September 12
September 18
September 19
September 30
(rights expire)
September
October 29

18.0
#.0

60.0
30.0
30.0

20.0
17.2

110.0
250.0

H.Ui

F-2
Forthcoming Large Offerings, as of August 16 (Cont'd)
Issuer

Type

Amount
(millions Approximate date
of offering
of dollars)

STATE AND LOCAL GOVERNMENT
0.0.
^Nassau Co., New York
G.O.
State of Massachusetts
Rev.
Kansas Turnpike Authority
EOLec. rev.
Omaha Public Power List., Nebraska
0.0.
San Jose, California
G.O.
State of South Carolina
G.O. State of Rhode Island
G.O.
*State of Delaware
G.O.
aWest Hartford, Connecticut
G.O.
Chicago Board of Educ., Illinois
G.O.
^Honolulu, Hawaii
G.O.
Santa Monica Unif. Sch. Dist.,Calif.
G.O.
Dade Co., Spec. Tax S.D. No. 1, Fla.
Water rev.
^Houston, Texas
G.O.
*Winnebago Co. S.D. No. 205, H I .
Highway rev.
State of Ohio.
Los Angeles, California
G.O.
^Baltimore Co., Maryland
G.O.
G.O.
State of Missouri
Rev.
Pennsylvania Gen. State Authority
G.O.
^Buffalo, New York
G.O.
San Diego Unified Sch. Dist., Calif.
G.O.
State of Texas
Utilities rev.
- Jacksonville, Florida
University System Bldg. Auth., Ga.
Rev.
Rev.
Pennsylvania Turnpike Commission
Rev.Inter-American Center Auth., Fla.
New York State Thruway Authority
G.O.

21.0
19.0

19.5
8.0

5.0

6.0
6.7
21.3
6.6
15.0
11.5

5.0

9.5
10.0

5.5

31.0

5.0

23.6
30.0
25.0

e.k

10.0
12.5
30.0
12.0
62.0
20.0
50.0

Aug. 19
Aug. 20
Aug. 20
Aug. 20
' Aug. 21
Aug. 21
Aug. 21
Aug. 27
Aug. 27
Aug. 28
Aug. 29
Sept. 3
Sept. U
Sept. U
Sept. 5
Sept. 10
Sept. 11
Sept. 12
Sept. 17
Sept. 19
Sept. 19
Oct. 15
1957
1957
1957
1957
1957
1957

OTHER
None
Included in table for first
1/ Includes corporate and other issues of $1$ million and over; State and
local government issues of $5 million and over.
2/ Includes foreign government and International Bank for Reconstruction
and Development issues.
—
Note.—Deletions for reasons other than sale of issue: None.




Exhibit G

H.lU

Yields on New and Outstanding
.
Electric Power Bonds, Rated Aa and A =/
Aa-rated offering - yields A-rated offering yields
Amount above
Amount above
Actual
Actual
seasoned yields
seasoned yields(per cent) (basis points) (per cent) (basis points)

Date

1952 - 1956
High
Low
1957 - January 8
16
18
22

ii. 30(12/12/56)
2.93(3/31/51)

.

62
-3

it. 50

.62

U.U3

56

1158(12/6/56)
3.00(3/17/5^)

'

' 70
-15

I4.67

70

li.56

57 .

2k
k.hO
53
February 5
k.29
k5
h6
19
k.2 5
k.2Z
27
k3
March 6
k.ia
35
12
52
U.58
20
1.55
k9
29
k.hS
U3
April 3
14.29
50
ii.60
10
59
12
ii.5o
h9
May 10
52
U.53
15
"
52
h.53 2/
16
65
it.70
lu5o
69
21
li.38 2/
51
98
23
5.00 .
29
123'
5.25
June 5
U.63
75
106
5.10
7
11
k.?8
87
July 3
U.80 2/
6k
10
U8
i L.88 I/
U.57
7k
68
11
1.77
16
ii.65
56
in 90
17
71
August lU
5.oo
75
*—Single observation, not an average.
1/ Covers only 30-year first mortgage bonds, as reported in Moody's Bond
Survey. Except where indicated, the actual yield figure and the amount above
seasoned yields are averages of offerings during the indicated period and of the
differences between these new offering yields and yields on seasoned issues of
similar quality for the same day. Average maturity for the seasoned issues varies
from 26 to 28 years.
2/ Provides' for a 5-year period during which issue may not be called for
refunding at a lower coupon rate. Other issues have no such provision.




Exhibit H
Sources and Uses of Funds by Life
Insurance Companies
Monthly

Cash

1955

May
July
Aug.
Sept.
Oct.
Nov.
Dec.

Value of Assets
at End of Year
1956 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
.Nov.
Dec.
Value of Assets
at End of Year
1957 - Jan.
Feb.
Mar.
Apr.
May.

ho

-3
30
75
-27
-9
67

55

1,255
-87
-113
-11*
27
19
-8
15
-29
13

16
16

161*
1,273

(In millions of dollars)
Uses of Funds.1T~
State and
U.S.
Busilocal
Govt.
govt.
ness
securities
ities
ities
-1|7
-12
50
81*
-51
-102
-136
-316

168

-9
1
22

1 hh

251
-9
209
261
153
293

h

.

7
-3
11

8,515 37,580

1,998

275
221
175
118

127
19
9

11*8

-13
8
1*3
15
7
5
11

-153
-157
-191
UO

1

-108
-27
1*5
-101
-217

106
298
155
51*
109
98
193

7,532 39,534

-132

56

2li
-22
60

-117
3
-90
-70

-hh

190
160
192
&
172

Mortgages

268
- 267

Other

253
21*9
313
301*
558

31*
51*
51
1*6
58
17
91*
201

29,125

11,1*61*

26h

367
. 302
281
268
310
293
328
285
211*
288
310
308

9h

126
U3
29

58

61*

55
9h

10k

-5

71
89

2,237

33,017

12,226

7

262
200
193
168
182
137

111*
11*1*
108
hi

119
72

July
Aug.
Sept.
1/ Uses of funds represent net changes in assets and therefore reflect net,
rather than gross, uses.
Source: . Institute of Life Insurance.




Exhibit I
Sources and Uses of Funds
by Savings and Loan Associations
Monthly
(In millions of dollars)
Uses of Funds 1/
Sources of Funds
U.S.
Net
•Total
Mort- Other
Govt.
change
Borrowsources
gages assets
savings
ing 2/
ities
capital
1955 - May
June
July
Aug.
Sept.
Oct.
Nov.
.Dec.
Value of Assets
at End of Year
1956E/ . Jan.
Feb.
Mar.
Apr.
m
F
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Value of Assets
at End of Year

25
18

3
126

-2 44

57

-66
-ia
117
67
268

15
-19
1

11

2,067 . 2,342

302

108
76
57
56
45
-32
35
39
13
Ik
28
17

2,142

2,798

-18
-44
-58
9
121
-169
-90
-1*3
37
56

551
611
534
581
183
3#
2I16
218

93
12
-71
ho

13
46
97
15

31,1j61 1,7VI
236
305
403
409

671
766
275
569
435
499
h20
503
37,719
276
434
I63
1:96
635
599
175

-19
53
18
89
137
29
-84
-1
55
68
85
-15

377
185
46l
578

35,870 2,236

43,098

445

481
391
452
353.
366
291
274

400

1*15
715
122
294
270
416
386
784

73
207
62
129
111
73
18
54

183
-156
91
146
51
10
16
-335

32,192

1,558

3,969

-197
-74
-51
-3
-2
57
-59
16
32
-It

50
150
155
169
162
-269
103
97
78
78
67
-368

U23
358
359
475
811
131
287
267
111
391
861
37,302

82
1,355

4,441

-168
19572/ - Jan.
148
212
187
-25
-190
41
336
Feb.
115
269
-39
-62
146
54
315
399
Mar.
86
-24 , 92
516
363
172
359
-15
28
-48
402
A?r.
115
10
496 ' 313
173
Kay
656
15
468
22
166
459
145
a/38
June
174
646
453
87
54
-35
-298
857.
July
Aug.
Sent.
2/ Preliminary, c/ Corrected.
1/ Uses of funds represent net changes in assets and therefore reflect net,
rather than gross, uses. Savings and loan associations do not hold business securities ano data on holdings of State and local government bonds, presumed to be small,
I are not available.
2/ advances from Home Loan Banks and other borrowing.
Source; Federal Savings and Loan Insurance Corporation.




Exhibit J
Sources and Uses of Funds. byMutual Savings Banks
Monthly

Cash

(In millions of dollars)
Uses of Funds 1/
State and
Total
Busilocal
sources
ness
govt,
Other or uses
secursecur- gages
ities
ities

U.S.
Govt.
ities

195-5 - May
July
Aug.
Sept.
Oct.
Nov.
Dec.

16
36
-65
9
-10
-25
-6
73

-lb
-58
34
-7
-45
-111
-73
-13

-38
-10
-32
-40
-23
-10
-35 .
—

' 965 8,46o

3,346

-33
-22
140

21
-8
8
-52
-42
-90
-7
-47
-37
-147
-78
-10

13
34
3
2
19
45
34
2
14
13
-7
5

Value of A ssets
920
at End of Year

7,971

3,523

1956 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept,
. Oct.
Nov.
Dec.

-52
-14
-13
-56
-2
89
-63
-19

Sources of Funds
Net
change
in
deposits

. 5
2
19
-3
-20
-5
-12
2

192
229
213
231
232
221
177
200

191
30
-3
194
146
-23
11
201
24
158
-16
54
36 . 87
246
-15

125
240
97
134
182
85
27
326

66
-47
49
67
-24
-31
60
-82

637

17,245

621 31,274

28,187

3,087

139
135
238
45
162
278
76
102'
159
62
50
399

40
87
13
34
64
-88
63
79
24
-44
72
-152

192
25
2
190
16 •
205
-3- . 183
194
-5
183
-5
l
198
2
227
186
-5
205
-5
i
175
8
146
669

19,529

-20
13
' 32
5
62
-32
-24
16
25
-15
53
-42

179
222
251
79
226 •
190
139
181
183
13
122
247

698 33., 311

30,032

3,279

Jan.
21
68
6
-89
136 • -5
85
137
52
Feb.
20
1 ;
54
92
• 27
112
194
82
Mar.
18
13
83
127
32
273
238
35
Apr.
-56
-76
63
2
121
-20
34
27
7
Hay
12
62
-19
2
62
' 127
246
169
77
June
-2
120
-73
75
266
72
153
-39
-113
July
Aug,
Sept.
1/ Uses df funds represent net changes in assets and therefore reflect net,
rather than gross, uses.
2/ Source: National Association of Mutual Savings Banks and Federal Deposit
Insurance Corporation.
1957