Full text of H.16 Capital Market Developments : January 23, 1958

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Not for Publication DECONTROLLED AFTER SIX HOSTHS
H.lli

'

January 23, 1958
CAPITAL MARKET DEVELOPMENTS
(Including.Monthly Review of Sources and Uses
of Funds of Financial Intermediaries)

The volume of public security financing was substantial last
week. Corporations sold large issues totaling $lh3 million and State
and local governments offered issues with aggregate proceeds of $173
million. The State and local government total includes Missouri's rescheduled $55 million bond issue which was sold at a net interest cost
of 2.2U per cent. In mid-September when $30 million of these Aaa-rated
bonds were first offered for sale no bids were received because of a
3 per cent interest rate limitation.
This week, a large corporate issue of $75 million is expected,
and State and local government issues totaling #112 million are scheduled
for sale. A $15 million bond issue of the Union of South Africa was sold
on January 21.
Bond yields" - Yields on outstanding bonds declined further last
week, except for U. S. Government bond yields which increased slightly.
The decline was particularly sharp for yields on State and local government bonds.
Offering yields on new corporate issues have also declined
further recently. A new A-rated, 30-year first mortgage electric utility
issue was offered to investors on Tuesday of this week to yield 3.80 per
cent — 5 basis points below that for a comparable issue sold last week,
and 170 basis points below a comparable issue in early November. An Aa- .
rated issue with similar terms was offered on Thursday to yield 3-60 per
cent — 70 basis points below that for the last comparable issue, an
offering made in early December.
Stock market credit - Customer credit in the stock market (excluding that extended on U. S. Government securities) showed little net
change during December, reaching a level of $3,576 million at the end of.
the month. This is the smallest amount outstanding since January 1955,
and represents a decline of 11 per cent from the peak in June 1957* Net
debit balances declined #35 million in December5 the decline, however, .
was nearly offset by the increase in bank loans to "others." Borrowing
(except borrowing on U. S. Government securities) by member firms of the
NYSE maintaining margin accounts increased in December. Customers net
free credit balances also increased. These and other data on stock market
credit for December and November are shown in the following table.




H.lii

- 2 -

End of month
Dec.

Nov.

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 U. S. Govt, securities
On customer collateral
Money borrowed on U. S. Government securities
Customers' net'free credit balances

3,576
2,182
1,09k
68

.3,577
2,517
1,060
12

-1
-35

60

33

27

1,706
l,U9h
12k
896

1,611
1,UU3
56
876

65
51
68
20

3h

26

Stock prices - The Standard and Poor's index of 5>U0 common
stocks increased about 2 per cent last week, closing at iil.10 on January 17. Prices showed little change on balance in early part of this
week, closing at i|1.20 on Wednesday.
Institutional investors - I n November, savings capital at
savings and loan associations increased more than a year earlier, while
the increases in life insurance company assets and deposits at mutual
savings banks were smaller than in November 1956.
The increase in life insurance company assets during November
amounted to $373 million, about 8 per cent less than a year earlier.
As has been the case in each month this year, the increase in holdings
of mortgages was much smaller this November. The increase in business
security portfolios, however, was more than twice as large as a year
ago. Net liquidation of U. S. C-ovemment securities was about the same
in both years.
The net increase in savings capital of savings and loan associations was $399 million, about six per cent greater than a year earlier.
While holdings of U. S. Government securities increased, the increase
was below that in the corresponding month of 1956, but funds invested
in mortgages were larger.




H.lli

- 3 -

Growth in deposits at mutual savings banks in November was
$36 million, compared with an increase of $$0 million a year ago.
(The decline in savings and time deposits at commercial banks, which
is usual in November when Christmas savings deposits are withdrawn,
was about the same in both years.) Net liquidation of U. 3. Government
securities by savings banks in November was greater than last year.
Net acquisition of mortgages was more than I4.O per cent smaller than a
year earlier, while net purchases of business securities continued to
be unusually large.
More detailed information concerning recent capital market
developments is presented in the attached exhibits.

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




H

EXHIBIT A

HIGH-GRADE

B O N D YIELDS

Spread between
U.-S. Govt, and
Corporate 1 State and
Aaa
1local Aaa

mini i

Corporate
iaa 1/

U. S. Govt.
long-term 2/

State and
local govt.
Aaa y

(Per cent)

1953 - High
Low
195U - High
Low
1955 High
Low
1956 - High
1957 - High
December 20
December 27
January 3
January 10
January 17

i

l

l

11

1/ Weekly average of daily figures. Average term of bonds included is 25-26 years.
2/ Weekly averages of daily figures. The series includes bonds due or callable, in
10 7

^mS-s I d^ e figures. Only general obligation bonds are included; average tennis


20
Note?--Highs and lows are
http://fraser.stlouisfed.org/
different series.
Federal Reserve Bank of St. Louis

for individual series and may be on different dates for

LOWER - GRADE

1953

BOND

YIELDS

1954

Date

1955

Corporate
Baa 1/

1956

State and
local govt.
Baa 2/

M

I

1957

$

1958

Spread between
Aaa and Baa
State and
local govt.

Corporate

(Per cent)
1953 - High
Low
195U - High
Low
1955 - High
1956 - High
Low
1957 - High
Low
December 20
December 27
January 3
January 10
January 17

3.89 (9/18)
3.50(1/2)
3.7k (1/8)
3 . a (12/31)
3.63 (12/30)
3.1*5 (1/lW
h.la (12/28)
3.58 (3/9)
5.10 (11/29)
. l*.i*2 (1*/12)
5.00
5.00
li.96
h.92
U.81*

3.79
2.96
3.32
2.93
3.26
3.02
h.22
**3.20
U.51
3.90
3.92
3.92
3.92
3.88
3.77

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

.69
.1*2
.68

.52

.51*
.1*5

.63

.1*2
1.27
.61*

1.23
1.27

1.28
1.27
1.23

.

1.21
.98
1.16
.93
1.03
.87
1.17
.89
1.21
l.Ol*
1.06
1.08
1.06
1.02
1.09

25-26 years.
obligation bonds are included; average
2/ Thursday figures. Only j
term is 20 years.
Note.—Highs and lows are for individual series and may be on different
dates for different series.




STOCK

MARKET

STOCK MARKET CREDIT

Date

Stock price
index 1 /

Stock market cust<jmer credit
Trading
Common
Customers'
volume 2 /
debit bal(millions yields 2/
ances h/ "others" £/
of shares) (per cent)
(Millions of dollars)

1953 - High
Low
195U - High
Low
1955 - High
Low
1956 - High
Low
1957 - High
Low
November
December
January 3
January 10
January 17

26.51 (1/2)
22.95 (9A8)
35.98 (12/31)
2k.93 (1/8)
15.89 (12/9)
35.28 (l/ll*)
1*9.61* (8/3)
1*3-22 (1/20)
U9.08 (7/12)
39.1*8 (12/20)
1*0.35
1*0.33 .
10.87 '
5^0.37
1*1.10

2.5
0.9
3.7
1.1*
U. 6
1.5
3.1
1.5
U.2
1.1*

6.25
5.38
5.82
1».32
1*.1*2
3.61,
ti.35
3.82
U.72
3.91

2.5
2.6
3.3

1*.62
U.63
It.56
c/L.58
1*.50

2.1*

2,455
2,055
3.1*36
2,105
1,030
3,537
11,01.7
3,91k
M31
3,576 .

1,665
1,311;
2,388.
1,653
2,805
2,517
2,823
2,71*02,887
2,1,82

780
66U
1,01*8
7W
1,214
1,018
1,267
1,155
1,163
1,05k

3,577
3,576
n.a.

2,517
2,W2

1,060
1,091*
1,09k
1,051

n'a'

i available, c/ Corrected.
1/ Standard and Poor's composite index of 500 common stocks, weekly closing
prices, 191*1-1*3-10. Monthly data are averages of daily figures rather than of
Fridays' only. Highs and lows are for Friday's data only.
2/ Averages of daily trading volume on the New York Stock Exchange.
3/ Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing prices by Federal Reserve.
h/ 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.
5/ 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 70 per cent of loans to others.
For further detail see Bulletin.
Note.—Highs and lows are for individual series and may be on different dates
for different series.




Exhibit D
Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)
New capital
Corporate
195b

January
February
March

e/ 800

April
May
June
July
August
September
October
November
December
1st
2nd
3rd
Uth

|

1958

1,063
1,071
1,3W*

573
712
817

e/ 700

92k
771
1,W

818
1,11*6
eta

991
91k
973

1,063
651*
038

1,011,

831

e/1,000

Quarter
quarter
quarter
quarter

1

71*5.,

1,080
1,088

1

1957

765
5U6
393

378
1*90
735

529
581
1*30

1*08
206
357

696
632

639
31*7 .
1*09

688

2,016

6,662
9,5W
a/12,385

1*,907
7,1*63
10,381)

7,081*

2,878

1956
1*01*
696
390

e/2,81*5

3,l8ii

1

7h2
572
506

2,102
2,g05
2,556
2,922

3,179

1st half
Three quarters
Year

State and local 1/
1956

1957

1,820
1,701*

1,51*1*
3,521*
5,068

1,1*90

1,603
971
1,395
3,093

l*,00l4
5,1*59

Excluding finance companies 3/
1st
2nd
3rd
l*th

quarter
quarter
quarter
quarter

Year

3,268
2,921
2,560

e/2,695e/11, B 6

1,617
2,51*1
2,21*6
2,826
9,260

1/ Data through June 1956 are Bond Buyer data classified as new capital by
- Federal Reserve; later data are from the Investment Bankers Association of America
and are somewhat more complete as to coverage than the earlier data, particularly
for Federal Government loans.
,
2/ Includes $571.5 million AT&T common stock issue.
3/ Total new capital issues excluding offerings of sales and consumer finance
companies.
Note,—Details may not add to totals due -to rounding.




H.lk

Exhibit E
Large Public Security Issues for New Capital
(Other than U. S. Treasury) "y
Proceeds of Large Issues Offered
(Millions of dollars)

Month

Corporate

1956 - December
1957 - January
February
March
April
Hay

State and
local government

201
386
306
19k
k99
2k8
176
265
357
185
k35
386 :
k39

U30
567
671
788
177
329
877
525
526
537
57k
k20
399

July
August
September
October
November
December

Other 2/

100
50
125
25
39
25
30
75

Large Individual Issues Offered January 1 through 17
Issuer

Type y

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

CORPORATE
Commercial Credit Co.
Motes
50.0
Conn. Light & Power Co.
lst&ref.mtg.bds.30.0
Washington Water Pwr. Co. 1st mtg. bds. ?0.0
Commonwealth Edison Co.
S.F. deb.
. 50..0
'VJ.Va. Pulp & Paper Co.
Deb.
liO.O
Pacific Power & Light Co. 1st mtg. bds. 15.0
Alabama Power. Co.
1st mtg. bds. 23.0
Kimberly Clark Corp.
S.F. deb.
15-0




1978
1988
1988
2008
1978
1988
1988
1983

ti 1/8
3 7/8
h •
h 1A
3 7/8
3 3A

1.20

3.89
h.10
3.83

a.05

k.25
3.85
3.75

Aaa
A
Aa
A
Baa
A
Aa

H.lli

E-2
Large Individual Issues Offered January* 1 through 17 (Cont'd)

Type 3/

Coupon
Amount
Offering
(millions
Maturity net inter- yield
Bating
of
est cost
dollars)

STATE AND LOCAL COVFFNMFNT
Los Angeles, California
Dade Co., Florida
Caddo Parish S. D., La.
Des Moines Sch. Dist., Ia
State of New York
Ga. Rural Roads Auth.
State of Missouri
New York, New York
State of No. Carolina
Pa. State Hwy. & Bridge
Auth.
San Diego V/tr. Auth.,Calif

25.0
Hi .5

3.18
3.61

2.10-3.30 Aa
2.75-3-50 A
2.15-3.20 A
1.80-2.60 Aa
1.60-2.30 A
2.20-3.1*0 A

10.0

1959-08/68
1956-72/63
. 1959-78
1956-77
1959-72
1959-78/68
1959-79
1959-61
1959-77

2.39

1.75-2.05 A
1 . 6 0 - 2 . h o •Aa

Rev.
Rev.

20.0
7.5

1960-79/65
1959-93

2.63
3.29

1.90-2.70 Aa
2.00-3.35 A

Eds.

150.0

G.O.
G.O.
G.O.
G.O.
G.O.
Rev.
G.O.
• G.O.
G.O.

7.5
5.7
37.5
17.5
55.0
25-5

3.17
2.62
2.28

3.1*1

2.3k
2.12

1.60-2.38

OTHER
Int'l Bk. for Reconstruction and Development

1979

h 1/h

1.29

Aa

1/ Includes corporate and other security offerings offt]5million and over; ~
State and local government security offerings of #5 million and over.
2/ Includes foreign government and International Bank for Reconstruction and
Development issues.
'
3/ In the case of State and local government securities, G.O. denotes general
obligations; Rev., revenue bonds; G.R., frneral obligations additionally secured byfacilities revenues; L.L., limited liability obligations secui-ed by pledge of designated revenues.




H.lU

Exhibit F
Forthcoming Large Public Security Offerings for New Capital
(Other than U. S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues

Date of
computation
1956 - Dec. 31
1957 - Jan. 31
Feb. 28
Mar: 29
Apr. 30
May 31
June 28
July 31
Aug. 30
Sept. 30
Oct. 31
Nov. 29
Dec. 31

Subsequent to
date shown

During month following _
date shown

Other 2/ Corporate

Corporate
U76
591
7W

2i6l

187
525
526
576
158
383
378

280
153
153
290
179
97
172
252
2h3

370
369
387
383

100
35
25
25
25.
30

•I
150

2/

796
966
795

763
61*8
631
862
396
388
1*98
51k

hS6

1
811
845

s
U39

587

6k7

815
1,193

1,161

6U1

100
35

I
25

1

63
165

Forthcoming Large Offerings, as of January 17
Type

Amount
(millions Approximate date
of offering
of dollars)

CORPORATE
Pacific Gas & Electric Co.
Commerce Oil Refining Corp.
Royal Dutch Petroleum Co.
^Northern Natural Gas Co.

1st & ref. mtg. bds. 75.0
Deb., bds. & common U5.0
Common stk.
100.0
Common stk.

20.0

Indiana & .Michigan Electric Co.
Pennsylvania Electric Co.
Cleveland Electric Illuminating Co.
American Telephone & Telegraph Co.

1st mtg. bds.
1st mtg. bds.
1st mtg. bds.
Conv. deb.

29.0
30.0
718.3

Natural Gas Pipeline Co. of America

1st mtg. bds.

Uo.o




25.0

Jan. 22
Jan.
Feb. 10
(rights expire)
Feb. 11
(rights expire)
Feb. Ill
Feb. 25
Feb. ,26
March 12
(rights expire)
Winter

H.lU

F-2
Forthcoming Large Offerings, as of January 1? (Cont'd)
Type

Amount
Approximate date
(millions of offering
of dollars)

STATE AND LOCAL GOVERNMENT
Sewer rev.
^Mansfield, Ohio
G.O.
State of California
Sewer rev.
Milwaukee Co., Wise.
Water & sewer rev.
^Dallas, Texas
G.O.
Dallas, Texas
G.O.
Florida State
G.O.
*Tonawanda City Sch. Dist., N. Y.
State of South Carolina
G.O.
G.O.
^Boston Met. Dist., Mass.
Water rev.
Los Angeles, California
State of New Hampshire
G.O.
Puerto Rico Water Resources Auth.
Rev.
•Bldg. 'rev.
*Met. Fair & Exposition Auth.,, '111.
•it-Allegheny Co. Sanitary Auth..-, 'Pa.
'Sewer -rev.
No. Hempstead Sch. Dist.-fro.'9, N.Y.
G.O.
East Baton Rouge Par. S.D. No.l, La.
. G.O.
Memphis, Tenn.
G.O.
*New Orleans, La.
G.O. :
Water rev.
Denver, Colorado
Public Housing Authorities
Wichita Sch. Dist. No. 1, Kansas
G.O.
*Met. Water Dist. of Southern Calif.
Rev.
^Guilford Co., North Carolina
G.O.
Water rev.
•^Milwaukee, Wisconsin
Rev.
New York State Thruway Auth.
Rev.
Pennsylvania Turnpike Commission
Rev.
Inter-American Center Authority,Fla.

6.2
100.0
5.7
5.0
6.8
7.9
5.1
8.0
5.5
9.0
28.14
25.0
25.0
25.0
7.1
'10 tO
12-! 5

6.9
20.0
67.1
5.0
18.0
6.0
10.0
Uo.o
62.0
20.0

-

Jan. 21
. Jan. 22
Jan. 2U
Jan. 27
Jan. 27
Jan. 28
Jan. 28.
Jan. 28
Jan. 29
Jan. 29
Jan. 30
Jan.
Feb. 3
Feb. h
Feb. k
Feb. h
Feb. h
'•Feb. 5
Feb. 5
Feb. •5
Feb. 6
feb. 11
Feb. 11
Mar. 18
Winter
Winter
Winter

OTHER
Union of South Africa
Quebec Hydro-Electric Commission

Ext. loan bds.
Deb.

15.0
50.0

Jan. 21
Feb.

*—Included in table for first time.
1/ Includes corporate and other issues of $15 million and over; State and
local government issues of S5> 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.




R±ibit G

H.lU

Yields on New and Outstanding
Electric Power Bonds, Bated Aa and A 1/
Aa-rated offering yields' A-rated offering yields "
Amount above
Amount a.l eve
Actual
Actual
seasoned yields
seasoned yields
(per cent; (basis points) (per cent) .(.basis points
1#2 - 19#
High
1957 - January
February
March
April
MayJune
July
August
September 5
25

October 1
15
17

1.30(12/12/56)
2.93(3/31/51)

62
-3

l\.hh

57
lilt

lx.25
None '

•

*1.29

It .It It.
it.71
It. 66
*5.00

U.80

U.85

57
75
51
56

L-.76

lt5

2li

November 7
.
8
15
20
21
22
December 6
12
1958 - January 8
9
17 -

50

g

lt.97
lt.86 3/

63
52

It.82
h.65
lt.65
U.30

53
37
39
Ik.

k.58(12/6/56)
3.00(3/17/51)

1.62

None
U.50
U.55
It.60
' *5.10
It.86 2/ "

70
-15
61t

1*5
51t
79
106
70

5.10
lt-.95'
5-.30
5-50
5.05 2/

U.ho
It.07
lt.10 2 /
3.85 "

39
3lt
67
!

1i3

f/13

r/ Revised. Daily bond yields for A-rated public utility issues have been
revised from December $, 3957, through January 9, 1958.
Single observation, not an average.
1/ Covers only 30-year first mortgage bonds, as reported in Moody's Bond
Surveye 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 vields on seasoned issues of
similar quality for the same day. Average maturity for the seasoned issues varies
from 26 to 28 years.
2/ Both issues on which July average is based and other issues so marked
provide 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

1 9 # - Oct.
Nov.
Dec.
Value of Assets
at End of Year
1956 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
Value of Assets
at End of Year
1957 - Jan.
Feb.
Mar.
Apr.
MayJune
July
Aug.
Sept.
Oct.
Nov.
Dec.

-9
67
55
1,255
-88
-113
-lb
27
19
-9
16
-29
11
16
16
166
1,273
-132
-30
-b7
21.
-22
60
-5
-30
1*5
-16
lit

(In millions of dollars)
Uses of Funds 1/
State and
local
BusiU.S.
Govt. ness
. govt.
securities
ities
ities
-102
-136
-3b6

j |
;•

Mortgages

Other

Totkl
sources
• or uses

261
153.
293

7
-3
11

313
30b
558

17
9b
201

b8?
b79
772

8,5b 5 37,5.80.

1,998

29A25

Il,b6b

90,267

125
20
30

373
3ob
280
269
3b 0
293
329
282
. 215
269
307
288

85
93
57
8
55
' 65
5'6
109
93
-1
73
115

617
377
311
b6o
b 5b
397
706
bll
bl9
b63
b05
557

-152
-157
-191
ho
-99
-66
-36
-109
2b
n
-101
-226

27b
230
169
116
. 153
lo6
297
111 2
73
108
9o
206

-1).!
8
lil;
16
5
12
-

7,539 39,5'.'
09
-hh
-117
3
-90
-70
36
-36
-lib
9

172 •

2,231]
-

30

J'. 2
36:;
]65
' V?

V
13
26

), ••

33
10
7
12
10

(' ij
l> <(.
v.-.y
V'U,

32,991

12,272

95,8bb

285
200
193
168
182
137
197
391
150
162
127

68
lbb
108
bl
119
72
91
82
92
8
118

b72
b22
336
bib
380
371
766
#9
b38
bl2
373

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




Exhibit I

H.lli

Sources and Uses of Funds
by Savings and Loan Associations
Monthly
(in millions of dollars)
Uses of Funds 1/
U.S.
Total
Govt, MortOther
sources
Cash
secur- gages .
or uses
ities
117
6?
, # 8

1
11
3

Value of Assets 2,06?
" at End of Year

2,3L2

1955 - Oct.
Nov.
Dec.

1956 - Jan.
Feb.
Mar.
Apr.
May

110
73
57
55
U3
-3h

-It 8
-It
-hi

-62
12
122c

July
Aug.
Sept.
Oct.
Nov.
Dec.

-178
-96

3h

39
13
Hi
25
11

-h3

36
58
302

Value of Assets 2,119
at End"of Year

2,782

-172
-1,0
-23
—It 8
38
187
-320
-106
8
-21

lL 2
117
91
30
18
-hi

1957— Jan.
Feb.
Mar.
Apr.
May

Sourcfes of Funds
Net
change
Borrow- Other
ing 2/
savings
capital
116
386
. 78U

. 73
18
514

10
16
-335

37,719

32,192

1,558

3,969

hl3
3U6
3U7
319
It 62
769

-2U0
-75
-51
-5

-21

2U8
lt20
U5o
1:88
617
539
186
398
377
U73
li37
523

287
267
lt05
377
822

81

35
Ht9
151
171
157
-28U
103
95
82
66
60
-380

35-^729 2,199

li2,875

37,11*8

1,3b 7

lt,00u

200
266
361t
ItOlt
lt58
lt65
39L
. L63
363
126
303

llt5"
#9
515
1(97
- 6%,
651
Hi
1,38

-215
-70
-21
lit
19
106
-3li
39

2lt
I51i
177
170
167
-311
116
lb 7
80
103
60

336
2lt6
218

ti6
97
15

31,U61 1,791
2lit
296
397
h08

1x36
hho

lilt •
Ith7
35h
356
27JU
232

-27

56
Lit
88
127
. 12

-81t
9
Sh

68
81

-2lt
57
81,
112
Dal
111
-100
59
55

It 99
lt?0
503

Ht2

336
315 •
359
313
L68
859
-68
252

-2

5U
-59
16
28
2

July
hi
Aug.
23
Sept.
26
hSl
32h
"
hi
-10
Oct.
I188
367
18
9h
8
Nov.
69
U73 t
399
8k
19
Dec.
p/ Preliminary.
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 and data on holdings of State and local government bonds, presumed to be small,
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 by
Mutual Savings Banks
Monthly

Cash

1955

19#

Oct.
Nov.
Dec.

(In millions of dollars)
Uses of Funds 1/
State and
Total
Busi- local
U.S.
Govt.
ness
govt. Mort- Other sources
secur- securgages
or uses
ities
ities
ities

-25
-6
73

-111
-73
-13

-10
-35

f Assets
of Year 965

8,1,60

3,316

21
-8
6
-52
-1.2
-90
-7
-li7
-37
-lk7
-78
-10

13
3h
3
2
19
li5
31.
2
111
13
-7
5

Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

-52
-lit
-13
-56
-2
89
-63
-19
-33
-22
lijO

Value of Assets
at End of Year 920
1957 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.

-89
13
-56
12
71
-73

-12

27
-2 k
6

7,971
21
20
18
-76
-19
-72
-7 '
11
-17
-136
-136

-5
-12
2

—

3,523
68
51i
83
63
62
72
62
61
55
6u
93

221
177
200

637 17,2h5

'

25
2
16

-5
-5
1
2
• -5
-5 .
l
8

192
190
2o5
183
l?h
183
198
227
186
205
175
1L6

669 19,529
6
1
2 .
2:
' -1
7
-3
2
-3
7

1#
92
127
121
127
110
122
111
103
12li
100

-16
36
-15

Sources of Funds
Net
changes
in ^
deposits

Other

2h6

85
27
328

62] 31,27k

28,18?

3,087

139
135
238
U5
162
278
76
102
159
62
50
399

ho
87
13
31,
6h
-8S
63
79
72
-152

30,032

3,279

5ii
87

-20
179
18
222
251
32
79
5
62
226
190
-32
-2li
339
16 ' 161.
183
25
18
-15
122
53
-1,2
21.7
6 9 8 33,311
-5
27
32
-20
62
-'8
-29
28
18
-111
38

137
39b
273
3li

216

150
82
166
188
-20
108

85
112
2#
7
169
265
16 .
90
206
314
36

-31
60
-82-

2h
-hh

52
82
35
27
77
-115
66
76
-18
-5k
72

1/ Uses of funds represent net changes in assets and therefore reflect net,
rather than gross, uses.
2/ Source: National Association of ?%utual Savings Banks and Federal Deposit
Insurance Corporation.
*