Full text of H.16 Capital Market Developments : March 30, 1959

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Not tor Publication

AFrER

SIX W W ®

H.lii

March 30, 1959
CAPITAL MARKET DEVELOPMENTS
(including Monthly Review of Sources and Uses
of Funds of Financial Intermediaries)

The volume of public security financing was small during the
holiday-shortened week ending March 27, but is expected to be somewhat
larger this week. Last week, corporations sold large issues totaling
$70 million*. No large State and local government bonds had been scheduled for sale. This week, the calendar includes large corporate issues
for new capital amounting to §116 million, State and local government
issues totaling $7it million, and a $90 million long-term offering by
the Federal National Mortgage Association.
Bond yields - Changes in bond yields were mixed, but minor
again last week. Yields on outstanding high-grade corporate and U. S.
Government bonds increased, while those for State and local government
bonds remained stable. Yields for lower-grade corporate bonds declined.
Yields on new corporate issues also have shown little change
recently. Two new Aa-rated, first mortgage electric utility bond issues
were offered to investors last week, each to yield k«h3 per cent. This
yield is slightly above the yield of the last comparable offering made
two weeks earlier. It should be noted that the earlier issue included
a five-yeer nonrefundable provision while the recent issues had no such
restriction.
April security volume - New corporate security offerings are
expected to total $700 million in April, slightly above the estimated
volume for March, but nearly two-fifths less than in April 1958. Large
public security issues for new capital are expected to total over $350
million.

r

State and local government security financing is expected to
total $750 million in April. This volume would be nearly one-sixth
more than in March, but slightly less than a year earlier. This estimate
includes a $200 million offering of the New York State Power Authority
scheduled for sale in mid-April.
Stock prices - Stock prices, as measured by the Standard and
Poor's index of 500 common stocks, declined further last week, closing
at 55=76 on March 26. Trading activity was much lighter than recently,
averaging 3=2 million shares a day.




H.lli

—

2

—

Institutional investors - In January, life insurance companyassets increased more rapidly than a year earlier, while the increase
in deposits at mutual savings banks and savings capital at savings and
loan associations was smaller than in January 1958. (Savings increased
rapidly during 1958 at mutual savings banks and savings and loan associations; the 1958 growth in life insurance company assets was much more
moderate.) The combined growth at these three institutions was four
per cent smaller than a year earlier. The investment pattern of each
of the institutions showed little change from that of late 1958.
The increase in life insurance company assets was one-tenth
larger this January than in 1958. Net acquisition of U. S. Government
securities was nearly two-thirds larger than last January. The increase
in U. S. Government holdings reflected both sizable acquisition of the
new
It per cent bond sold in January and a further increase in holdings of bills and other short-term obligations. holdings of both business securities and mortgages increased less rapidly than a year earlier,
with the growth in the former being one-sixth less and in the latter
two-fifths smaller.
Savings capital at savings and loan associations rose $U3U
million in January, slightly less than a year earlier. Net acquisition
of U. S. Government securities was very large, totaling nearly $300 million compared with less than S£0 million in January 1958. The net increase in holdings of mortgagesvas more than twice as large as a year .
earlier. Holdings of cash declined more this January, but repayment of
borrowing was about one-half smaller this year.
Growth in deposits at mutual savings banks was $122 million,
nearly one-half smaller than last January. As they were at the other
savings institutions, net acquisitions of U. S. Government securities
by savings banks were very large in January ($119 million), reflecting
to a large extent purchases of the new k
per cent bond. The increase
in holdings of mortgages was three-fifths larger than last year. There
was a slight net liquidation of business securities this January in contrast to an increase of more than $150 million in January 1958.
More detailed information concerning recent capital market
developments is presented in the attached exhibit.

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




5

liSIill.-*
HIGH-GRAPE

BOND

YIELDS

v\/

LOWER-GRADE

BOND

YIELDS




H.lk

Exhibit b
Tables for Exhibit A
High-grade liond Yields
Corporate
Aaa 1/

Date

U. S. Govt,
long-term 2/

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

State and
local govt.
Aaa y

(Per cent)
1951* - Low
1957 - High
1958 - High
Low
1 9 # - High.
Low

2.85
k.lk
li.13
3-55
k.16
k.09

Feb.
Mar.
Mar.
Mar.
Mar.

Ll3
k.ll
it. 13
k.13
U.lii

27
6
13
20
27 E/

.

(k/23)
(9/27)
(10/10)
(5/2)
(1/30)
(1/9)

2.15 (8/6)
3.76 (10/18)
3.8k (12/26)
3.07 (it/25)
3.96 (1/23)
3.83 (1/2)

1.90
3.k5
3.31
2.6k
3.20
3.06

3.90
3.87
3.92
3.92
3.9k

3.11
3.06
3.06
3.06
3.06

(9/2)
(8/29)
(9/U)
(5/1)
(2/5)
(3/26)

.30
.60
.51
.22
.27
.16

.30
.1*7
.72
.3k
.88
.65

.23
.2k
.21
.21
.20

.79
.81
.86
.86
.88

Lower-grade Bond Yields

Date

Corporate
Baa 1/

State and
local govt.
Baa y

Spread between
Aaa and Baa
State and
Corporate
local govt.

(Per cent)
195k - Low
1957 - High
1958 - High
Low
1959 - High
Low

3.ilk (12/31)
5.10 (11/29)
k.96 (1/3)
k.51 (7/11)
k.90 (2/13)
k.83 (3/26)

2.93(8/5)
k.5l (0/29)
k.3k (9/11)
3.6k (5/1)
k.13 (2/5)
3.92 (3/26)

Feb.
Mar.
Mar.
Mar.
Mar.

k.89
k.87
k.87
k.85
k.83

k.03
3.95
3.93
3.92
3.92

27
6
13
20
27 2/

.52
1.27
1.28
.77
.77
.69

.96
1.21
1.11
.93
.98
.86-

.76
.76
.7k
.72
.69

.92
.89
.87
.86
.86

2/ Preliminaiy.
1/ Weekly average of daily figures. Average term of bonds included is 2$-26 years.
2/ Weekly average of daily figures. The series includes bonds due or callable in
10 years or more.
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 series.




STOCK

MARKET




Exhibit D - Tattles for Exhibit C
Stock Market

Date

Stock price
index 1/

Common
Trading
stock
volume 2/
yields 2/ (millions
(per cent) of shares)

Stock market customer credit
Customers'
Bank
debit bal- loans to
ances 4/ "others"5/

Total

(Millions of dollars)
1953-1958 - High
Low
1959 - High
Low

54.11
22.95
56.67
5U. 37

(12/24/58) 3.30
(9/18/53)
6.25
(3/13)
3.21
(2/6)
3.3b

4.9
0.9
4.3
3.0

It,492
2,055
4,554
4,527

3,285
1,314
3,297
3,2 53

1,317
669
1,289
1,210

JanuaryFebruary
Mar. 6
Mar. 13
Mar. 20
Mar. 2? %/

55.82
51.77
56.21
56.67
56.39
55.76

3.24
3.32
3.24
3.21
3.22
3-31

4.0
3.5
4.2
4.2
4.3
3.2

4,554
4,527

3,297
3,253

n.a.
n.a.
n.a.

n.a.
n.a.
n.a.

1,257
1,274
1,270
1,271
1,289

n.a.—Not available.
g/ Preliminary.
1/ Standard and Poor's composite index of 500 common stocks, weekly closing
prices, 194l-43"10. Monthly data are averages of daily figures rather than of
Fridays' only. Highs and lows are for Fridays' data only.
2/ Standard and Poor's composite stock yield based on Wednesday data converted
to weekly closing prices by Federal Reserve. Yields shown are for dates on which
price index reached its high or low.
^
3/ Averages of daily trading volume on the New York Stock Exchange.
7j/ 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.
SJ 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.




Exhibit E

H.lU

Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)

1959
January
February
March

2/782
1/650
e/650

April
May

e/700

New capital
Corporate 1/
State and local 2/
1959
1
1958
1 -19W
1
1957
1
1957

July
August
September
October
November
December
1st
2nd
3rd
iith

quarter
quarter
quarter
quarter

e/2,082

1st half
Three quarters
Year

i,56il'

1,060
1,065
1,320 .

i,iui
600
881

i,U53

723

63k

812

e/750

7h2
572
506

|/6%
798
895
551

7 65
5U6
393
529
58U
131

1,102
538
l,lkk

1,003
973

806
I03
651

858
U73
91U

1,090
789
1,076

li56
U7lt
135

698
633
698

3,135
2,622
2,781
2,250

3,lite
3,1#
2,899
2,95k

2,276

1,660
1,365

1,820
1,704
1,5a
2,029

5,757
8,5hl
10,791

6,59k
9,U93
12,W

1,520
6,380
7,716

3,52k
5,069
7,099

92h

e/2,126

2,2hk

• Excluding finance companies h/
1st
2nd
3rd
jith

quarter
quarter
quarter
quarter

e/1,882

Year

2,89b
2,583

I'JZ

3,237
2,889
2,582
2,810

10,391

11,518

2/ Preliminary.
1/ Securities and Exchange Commission estimates of net proceeds.
2j Investment Bankers Association of America estimates of principal amounts.
3/ Includes $718.3 million AT&T convertible debenture issue.
%/ Total new capital issues excluding offerings of sales and consumer finance
companies.




Exhibit F

H.Ik

Other Security Offerings 1/
(In millions of dollars)
Long-term
Foreign government 2/
Federal agency 3/
1958
1
1957
1959
1 1958 1 1957
1959
1
January
February
March

77
53

April
May
June

84
49
30

199

1,163
251

72

523

125

139
198
120

^48
42

July
August
September

9
5
17

28
7
30

164

October
November
December

58

k20

12

4
60
1

Year

992

507

2,321

60

215

100

ShortState and local government it/
January
February
March

326

572

Federal agency 3/
270
500

371
208
144

638
430
565

264

205
337
153

209
161
329

336
469
501

July
August
September

289
1*23
369

272
272
252

437
206
330

October
November
December

415
243

303
94
459

3,910

3,274

190
E/423

April
May

Year

233
1*60
273

$

S

.

•

224
370
512

454
114
137

1,238
255
116

3,098

5,543

jd/ Preliminary.
l/ Data presented in this exhibit differ from those in Exhibit E in that refunding issues, as well as new capital issues, are included. Long-term securities are defined as those maturing in more than one year.
2/ Includes securities offered in the United States by foreign governments and
their subdivisions and by international organizations. Source: Securities and Exchange Commission.
y Issues not guaranteed by the U. S. Government. Source: long-term, Securities
and Exchange Commission; short-term, Federal Reserve.
4/ Principally tax and bond anticipation notes, warrants or certificates and Public
Housing
Digitized
forAuthority
FRASERnotes. In some instances PMA notes included may have a somewhat
longer tern than one year. Source: Bond Buyer.



Exhibit G

H.Ik

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

Month

Corporate

1958 - February
March
April
May
June
July
August
September
October
November
December
1959 - January
February

State and
local government

605
1,093
725
356
281
771
209
825
259
. 227
305
369
3k0

Other 2/

266

553
182
' 300
505
195
275
109
288
172
259
229
335
551

653
16U
86
10.
18
209
100
79
17U
35

Large Individual Issues Offered March 1 through 27

Issuer

Type J3/

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

Rating

CORPORATE
-No. Indiana Pub. Serv. Co. 1st mtg. bds.
25.0
KLM Royal Dutch Airlines
Conv, sub. deb. 18.5
American Natural Gas Co.
Com. stk.
28.0
Colorado Interstate Gas Ctx 1st mtg.p.l.bds.33.0
Texas Eastern Trans. Corp.
Pfd. stk.
15.0
Cleveland Elec. Ilium. Co. 1st mtg. bds.
25.0
Montana Power Co.
1st mtg. bds.
15.0
Ohio Edison Co.
1st mtg. bds.
30.0

k 1/2

19&9
1979

loA

li.75

1979

L70

ii.67

19 9k
1989
1989

it 3/8

k.29
h.h3
~h.h3

h 1/2
it 1/2

li.liO

Aa
Aa

STATE AND LOCAL GOVERNMENT
Detroit-Metro. Expressway ' Rev.-S.T.
Philadelphia, Pa.
G.O.
Port of New York Auth.
Rev.-Ut.
New York, N. Y.
G.O.
Metro.Wtr.Dist.of So.Calif. Rev.-Ut. .
State of California
G.O.
Phoenix, Arizona
Rev.-Ut.
West Virginia Univ.
Rev.-Q.Ut.




25.0 1960-81
3.5k
25.5 1960-89
3.27
30.0 1989/68
3.68
26.3 1960-74
3.17
26.lt 1960-71
2.96
100.0 1960-8V79 3.55
10.0 1960-88/68 3.69
10.2 I96O-89/69 1.27

1.90-3.65, ,
1.85-3.1*5^
3.63
1.90-3.37
1.90-3.05
1.90-3.60
2.00-3.80^,
3.25-1.302/

A
A
A
A
Aa
Aa
A

H.lli

G-2
Large Individual Issues Offered March 1 through 27 (Cont'd)

Issuer

Type 3/

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

Rating

STATE AND LOCAL GOVERNMENT
(Cont'd)
Baltimore, Md.
State of Delaware

GoO.
GoO.

28.9
12.5

1960-81
1960-79

2.96

3.11

I.9O-3.20
1.80-3.05

h 1/h

k.35

Aa
Aa

OTHER
Federal Land Banks

Farm loan bds. 86.0

1968

l/ Includes corporate and other security offerings of $15 million and over;
State and local government security offerings of $10 million and over.
2/ Includes foreign government and International Bank for Reconstruction and
Development issues and non-guaranteed issues by Federal agencies.
2/ In the case of State and local government securities, G.O. denotes general
obligations; Rev.-Ut., revenue obligations secured only by income from public utilities; Rev.-Q.Ut., revenue bonds secured only by revenue from quasi-utilities;
Rev.-S.T., revenue bonds secured by revenue from specific taxes only; Rev.-Rent.,
revenue bonds secured solely by lease payments.
V 1987-89 maturities not reoffered.
5/ 1989 maturities not reoffered.




Exhibit H

H.lij

Forthcoming Large Long-term Public Security Offerings for New Capital
(Other than U, S. Treasury) 1/
Expected Proceeds from Forthcoming Large Issues
Date of
computation

Subsequent to
date shown

During month following
date shown
Corporate

- Teb. 28
Mar. 31
Apr. 30
May 29
June 30
July 31
Aug. 29
Sept. 30
Oct. 31
Nov. 28
Dec. 31
— Jan. 30
Feb. 27

1/123
555
356
266
768
161
785
113
20l
301
210
270
198

|Other 2/

13U
298
193
177
225
55
21*1
295
258
229
261
551
292

110
150
36

Corporate
1,208
670
561

tok

1,018
381
911*
216
326

hOl

71
75

370
365
279

16
—-

^

3U.
330
1*93
208
235
125
1*35
521*
675
663
515
856
I18I

Other 2/

110
150
36

71
75
1*5

Forthcoming Large Offerings, as of March 27
Issuer

Type

Amount
Approximate date
(millions
of oifering
of dollars)

CORPORATE
Ohio Power Co.
Monongahela Power Co.
Armco Steel Corp.
Glickman Corp.
Tennessee Gas Transmission Co.
W. T.. Grant Co.
*Texas Eastern Transmission Corp.
Natural Gas Pipeline Co. of America
Food Fair Stores, Inc.
•aphilco Corp.
Columbia Gas System, Inc.
*Public Service of Colorado
Commerce Oil Refining Corp.




1st mtg. bds.
1st mtg. bds.
S.F. deb.
Com. stk.
Pfd. stk.
Com. stk.
1st mtg. p. 1. bds.
1st mtg. p. 1. bds.
Conv. sub. deb.
Conv. deb.
Com. stk.
1st mtg. bds.
Deb., bds. & common

25.0
16.0
75.0
31.0
a.o
15.0
15.0
20.0
21.2
20.0
l*o.o
20.0
1*5.0

Mar. 31
Apr. 1
Apr. 2
Apr. 7
Apr. 8
Apr. 9
Apr. 9
Apr. 10
Apr. 10
(rights expire)
Apr. 17
Apr. 20
(rights expire)
Apr. 29
Spring

H.llt

H-2
Forthcoming Large Offerings, as of March 27 (Cont'd)

Issuer

Type

Amount
Approximate date
(millions
of offering
of dollars)

STATE AND LOCAL GOVERNMENT
Milwaukee, Wisconsin
Pennsylvania General State Auth.
Shelby Co., Tennessee
Territory of Hawaii
Los Angeles Sch. Dist., Calif.
Alabama Highway Authority
*State of Connecticut
Buffalo, New York
Florida Development Commission
State of Minnesota
^Commonwealth of Massachusetts
*State of Mississippi
Oakland Co., Michigan
«New York State Power Auth.
estate of Tennessee
Los Angeles, California
^Cincinnati, Ohio
Chesapeake Bay Ferry Commission
State of New Jersey
Memphis, Tennessee

G.O.
Rev.-Rent.
G.O.
Rev.-Q.Ut.
G.O.
Rev.-Ut.
G.O.
G.O.
Rev.-Ut.
G.O.
G.O.
G.O.
Rev.-Ut."
Rev.-Ut.
G.O.
Rev.-Ut.
G.O.
jlev.-Ut.
G.O.
G.O.

25.0
10.0

Mar. 31
Mar. 31
Mar. 31
Mar. 31
Apr. 7
Apr. 7
Apr. 8
Apr. 9
Apr. 9
Apr. Ik
Apr. Ik
Apr. 15
Apr. 20
Apr. 21
Apr. 28
May 12
May 12
Spring
Spring
Spring

90.0

Mar. 31

18.8
30.0
11.0
lii.O
27.0
20.0
16.9
10.2
25.0
12.0
60.2
20.0
12.7
200.0
10.0
. 15.0
26.9

ihk.o

OTHER
^Federal National Mortgage Assoc.

Deb.

*—Included in table for first time.
1/ Includes corporate and other issues of $15 million and over; State and
local government issues of $10 million and over.
2/ Includes foreign government and International Bank for Reconstruction
and Development issues and non-guaranteed issues by Federal agencies.
Note.—Deletions for reasons other than sale of issue: None.




H;ll*

Exhibit I
Yields on New and Outstanding
Electric Power Bonds, Rated Aa and A 1/
Aa-rated offering yields
A-rated offering yields
Amount above
Amount above
Actual
Actual
(per cent) seasoned yields (per cent) seasoned yields
(basis points)
(basis ooints)

Date'

1952 - 1957
High
Low
1958 - January
February .
March
April
May

5.00(9/14/57)
2.93(3/31/510

• „

July 2
9
18
23
Oct. 7
15
28
29
Dec. 17
1959 - Jan. 7
20
28
. Feb. 18
Mar. 11
25
26

87
-3

*3.60-,
3.89^
a. 08
3.91
3.87
3.87

-8
22
35
18
18
17

it. 00
li.10
a.10
a.57
L50
k.kO ,
k.k2l/
It.Wt

25
28
29
25
22
12
1U
23

L.60
4.65?/

3h
bO

k.kl
4.U3

ii
9
9

5.50(11/7/57)
3.00(3/17/51)
3.962/
4.07
4.16
4.01
4.07
3

123
-15
3
9
-1
8
6

^

h.3&

31

It. 7 5 ^

23

-*—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. Monthly averages so marked include one or
more issues with such a provision. Other issues have no such provision.




Exhibit J
Sources and Uses of Funds by Life
Insurance Companies
(In millions of dollars)
U. S.
Govt.

Cash

ities
1957 - Jan.2/
Feb..
Mar.
Apr. 1
MayJuly
Aug.
Sept.
Oct.
Nov.
Dec.
Value of Assets
at End of Year
1958 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
Value of Assets
at End of Year
1959

• Jan.
Feb.
Mar.

-127
-37
-k2
28
-18
59
-9
-30
47
-17
22
138

65
-33
-109
11
-79
-62
5
-32
-32
13
-92
-181

Uses of Funds 1/
BusiState and
ness
local govt Mortgages
ities
ities
202
169
200
172
169
181
324
163
198
244
212
258

9
10
26
2
14
11
7
13
10
10

286
205
197
172
186
ia
163
195
154
170
132
237

87
147
102
34
135
65
87
77
93
6
110
/ 7

2,377

35,271

13,206

191
125
140
113
116
104
123
140
139
186
146
303

ill
144
6o
• 19
167
140
, 46
147
: 74
53
100
• 185

12

Total
sources
or uses

Other

525
451
357
427
419
392
584
384
467
429
394
469

1,29k

7,028

42,133

-93
-51
20
-17
74
-20
20
-17
-1
-19
52
123

171
15
-119
11
-70
47
175
42
7
12
25
-139

221
106
277
208
135
194
182
128
201
303
133
394

1,365

7,205

44,615

2,685

37,097

14,452

107,419

-83

280

185

59

114

171

726

51
10
23
13
28
35
24
36;
19
25
31
13

•/

1/ Uses of funds represent net changes in assets and therefore reflect net
rather than gross, uses.
2/ Adjusted to eliminate the effect of a change in estimating procedures.
Source: Institute of Life Insurance.




652
349
4oi
347
450
500
570
476
439
560
487
879

V! •
H.lii
Sources and Uses of Funds
by Savings and Loan Associations
(In millions of dollars)
Uses of Funds 1/

u. s.

Govt.
securities
1957 - Jan.
" Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
Value of Assets
at End of Year
1958^- Jan.
Feb.
Mar.
Apr.
MayJuly
Aug.
Sept.
Oct.
Nov.
Dec.
Value of Assets
at End of Year
1959 - Jan.
Feb.
Mar.

-171
-I4O
-2l*

ll*3
115
89
26
lit
-1*0
1*1
21*
26
-5
23
-65

-k9

39
185
-320
-103
11
-18
86
1*31
2,11*6

3,173

1*1*
-19
-1
38
13
81
1*0
111
11*7
107
50
37

-119
173
209

116

38
177
-297
-70
-78
-108
a
338

Mortgages

Other

y

Total
sources
or uses

Sources of Funds
Net
Borrowchange
Other
savings
ing 3/
capital

220
259
357
1*00
166
1*21
1*07
1*60
357
1*16
278
253

-20
56
86
115
11*0
31
-9lt 59
56
87
60
-5

172
390
508
492
639
597
3U
1*1*0
150
180
1*1*7
6ll*

337
308
352
308
1*52
821
-52
252
32U
361
378
923

-211
-69
-19
11
21
101
-37
37
1*7
16
10
125

1*6
151
175
173
166
-325
123
151
79
103
59
-1*31

1*0,01*9

2,770

48,138

1*1,912

1,379

1*, 81*7

19l*
21*7
335
398
526
582
533
557
571*
6o5
1*65
532

12
8
10
102
100
-37
-80
9
1*2
131
102
-1*1*

131
1*09
553
651*
679
803
196
607
685
735
661
863

1*50
373
1*81*
356
508
9#
62
353
1*1*0
. 501
1*77
1,073

-377
-127
-89
113
-32
169
-39
55
85
58
1*1
215

58
163
158
185
203
-303
173
199
160
176
11*3
-1*25

2,569

3,821

1*5,599

3,125

55,1ll*

17,926

l,l*5l

5,737

r300

296

iilO

-53

353

1*31*

-181

100

d/ P r e l i m i n a r y . '
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/ 1957 data adjusted to include mortgage pledged shares as currently reported.
J3/ Advances from Home Loan Banks and other borrowing.
Source: Federal Savings and Loan Insurance Corporation.




•I

'

''i
•1
ij

Exhibit L

H.lii.

Sources and Uses of Funds by
Mutual Savings Banks
(In millions of dollars)

Cash

Uses of Funds 1/
Sources of Funds
State and
BusiNet
Total
local
change
Mort- Other sources
govt.
Other
gages
securor uses
in
itiesE/
deposits
ities

U. S.
Govt.
ities

1957 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
Value of Assets
at End of Year
1958 - Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.

13
-56
12
71
-73
-h2
27
-2k
6
125

21
20
18
-76
-19
-72
-7
11
-17
-136
-136
-26

890

7,552

-60
63
36
-k7
-5
k2
-66
-5
18
-8
-38
10k

-21
la
-85
-62
-36
11
19
-27
-92
-32
-39

-89

Value of Assets
at End of Year

92k

1959 - Jan. 3/
Feb.
Mar.

-96

68

6
1

83
63
62
72
62
61
55
60
93
75

2
2
-1
7
-3
2
-3
7
-7

136
92
127
121
127
118
122
111
103
12k
100
Ikl

it,331

682

20,951

160
86
86
97
120
-2k
3k
8
3k
-6

23
It
6
k
-19
2k
8
2
2
-3
-1
-10

130
99
165
15k
195
253
193
198
181
195
151
158

>
f

Sk

12

7,229

>,938

119

-16

722
17

23,023
208

137
19U
273
3k
2k6
150
82
166
188
-20
108
299

85
112
238
7
169
265
16
90
206
3k
36
W5

761 35,168

31,695

-5
27
32
-20
62
-38
-29
28
18
-a
38
-9

25
20
9
-29
1*0
5
-28
29
29
-U6
1*3
20

278
251
3k3
9k
269
26U
152
251
237
Uo
123
2U5

878 37,715
-58

175

23k
lli9
336
93
181
300
88
113
267
95
lt2
398 .
31,021

52
82
35
27
77
-115
66
76
-18
-5k
72
-106
3,173

Itii
102
7
1
88
-36
61*
108
-30
-55
81
-153
3,694
53

1/ Uses of funds represent net changes in assets and therefore reflect net,
rather than gross, uses.
2/ Includes Canadian government and political subdivisions, International Bank
for Reconstruction and Development, non-guaranteed Federal agency and other bonds juswell as corporate bonds and stocks.
2/ Adjusted to eliminate the effect of a merger of a large savings bank with a
commercial bank.
Source: Nat. Assoc. of Mutual Savings Banks and Federal Deposit Insurance Corp-