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FEDERAL RESERVE BANK of KANSAS CITY L-lt-3 Ai'ri 27 1959 RESEARCH LIBRARY BACKING A M ) MONETARY DEVELOPMENTS IN MARCH 1959 Summary. Total credit at commercial banks declined somewhat in March as a substantial reduction in holdings of II. S. Government securities more than offset growth in loans and in holdings of other securities. Business loans accounted for the greater part of the loan growth but most major types of loans rose. The seasonally adjusted active money supply rose sharply. U. S. Government deposits, which usually increase substantially in March, declined. Net borrowed reserves of member banks rose somewhat. Effective between March 6 and March 16, the discount rate was raised to 3 per cent from 2-1/2 per cent at all Federal Reserve Banks. Data for assets and liabilities of all commercial banks have been revised for the period October 1958 through March 1959* and these revisions are reflected in this report. Revisions were made in accordance with the all-bank call figures for December 31> 1958, which have just become available. These data differ from those previously published in the Federal Reserve Bulletins and in the regular monthly releases, "Assets and Liabilities of All Banks in the United States". The recent revisions were considerably larger than the usual semi-annual revisions. Revised data on demand deposits adjusted and currency outside banks, for example, show a level $1.1 billion higher on December 31, 1958, than previous figures had indicated. As a result, growth in the active money supply during the year 1958 totaled $5.7 billion, or 4.1 per cent, rather than the 3*3 per cent previously indicated. Growth in time deposits was also slightly larger than previously reported. On the other hand, revised data show that the decline in the active money supply during the first quarter of 1959 was $500 million larger than previously reported, resulting in a seasonally adjusted rise of $500 million less, that is, $900 million instead of $1.4 billion. Additional tables have been included in this report showing final changes in major asset and liability items for the year 1958 compared with previous years. The large changes between estimated and final yearend data resulted primarily from more rapid growth in credit and deposits at nonmember commercial banks than at country banks during the latter part of 1958. Preliminary data for nonmember banks are entirely estimated from country bank data Hot for publication on the basis of the latest available call report relationships between country and nonmember bank data for individual items. Generally, balance sheet data for these two groups of banks move in a similar manner. On December 31, however, final nonmember bank data for total loans and investments were $500 million higher than estimates had indicated, and final data for demand deposits adjusted 'were $700 million higher. Final member bank data for December 31 on total loans and investments differed only slightly from preliminary data, but on demand deposits adjusted, they were $300 million higher. This unusually large difference was mainly due to technical reporting and estimating difficulties growing out of the fact that the last Wednesday of December in 1%)8 fell on the last day of the year. The data used by the Reserve Banks in preparing end-of-month deposit figures are those reported by the member banks on the reserve computation form, which shows deposits as of the opening of business on December 31» Therefore, the December 31 close-of-business figure for country banks did not become available until those banks submitted their reserve computation form for the first half of January, too late for preparation of the G.7 release. As a result, the Reserve Banks estimated the country bank figure on the basis of the December 31 opening deposit figure. Owing to large year-end deposit movements, this estimate was subject to a considerable margin of error. The revised demand deposits adjusted figures for the last Wednesday in January, February, and March are only $500$600 million higher than previous estimates, in contrast with the $1.1 billion revision for December 31. The smaller revision for these months resulted from two factors, (l) Deposits adjusted for country member banks required no revision for these months whereas they were revised upward by $300 for December 31. However, this resulted in a larger decline between the end of December and the end of January than had previously been reported. (2) The ratios used in estimating nonmember data from country bank data were revised on the basis of the increased volume of nonmember bank resources found to exist on December 31. Since deposits at country banks were declining during the period January through March, the revised estimates for nonmember banks show a more rapid decline and a lower absolute level of deposits than the previous estimates. Hot for publication -3- L.4.3 Table 1 Estimated Changes in Loans and Investments at All Commercial Banka (In billions of dollars) Last Wednesday in February to last Wednesday in March Item 1959 1958 1957 1956 1955-/ 1954-/ + 1.5 + 0.9 + 1.2 + 2.1 + 1.0 + 0.8 + 1.0 + 0.2 - 0.1 — 0.1 + 0.2 + 0.1 + 0.6 1/ + 0.3 + 1.6 + 0.2 1/ - 0.1 + Oil + 0.2 + + + + + + 0.3 + 0.1 + 0.1 - 0.1 1/ + 1.2 1/ - 0.1 1/ + 0.1 1/ U. S. Government securities - 2.3 + 1.3 - 1.1 - 0.6 - 2.6 - 2.3 Other securities + 0.2 + 0."7 + 0.2 1/ + 0.2 + 0.1 — 0.6 + 2.8 + 0.3 - 1.4 - 1.5 Total loans (excluding interbank) Business Eeal estate Security Agricultural Consumer All other Total loans and investments (less interbank) If + 1.4 0.6 0.2 0.2 0.3 0.2 0.1 + 0.3 i/ Last Wednesday in February to last Wednesday in March Item 2/ 1953 1952 1951 I95 Or-' 1949^ 1948-/ + 1.0 + 0.5 + 0.9 + 0.7 + 0.4 + 0.3 + 0.5 1/ + 0.1 1/ + 0*3 1/ + 0.2 4- 0.1 + 0.1 1/ + 0.1 1/ + 0.6 + 0.1 1/ 1/ + 0.1 + 0.1 - 0.1 + 0.2 4- 0*3 1/ + 0.1 + 0.2 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. U. S. Government securities -1.4 - 0.2 - 0.3 -1.3 - 1.3 - 2.4 Other securities + 0.2 + 0.2 + 0.2 + 0.4 + 0.2 + 0.3 - 0.2 + 0.6 + 0.7 - 0.2 - 0.7 -1.8 T ota 1 loans (exc lud ins interbank) Business Eeal estate Security Agricultural Consumer All other Total loans and investments (less interbank) l/ 2/ Less than $50 million. n.a. Not available Data for March are affected by the date of the last Wednesday relative to the April 1 personal property tax date in Cook County Illinois. Note: Data for March 25, 1959# are preliminary estimates based on data reported by a sample of member banks. Eevised estimates will be available at the end of April. Not for publication Table 1 (Con't) Estimated Changes in Loans and Investments at All Commercial Banks (In billions of dollars) December 31 Item 1959 Total loans (excluding interbank)" 3/ 1958 1957 - 1.7 - 0.6 0.2 - 1.3 + 0.1 + 1/ Business Real estate SecurityAgricultural Consumer All other to last Wednesday of March 0.7 0.7 O.U + 0.1 K.i 0.3 1955 2/ 1951 2/ 0.8 - 0.6 1.3 + + - ^.7 1.3 o.U 0.5 o.i + + 0.5 + 0.5 o.i o.U 0.3 0.3 - 0.3 0.6 - 0.6 + 0.8 + + 0.2 0.1 + + 2.9 - 3.0 - U.8 - 2.7 + 1.0 + 0.2 - o.i + 0.7 + O.U + 0.6 - - 1.8 - 3.3 — 3.0 - 0.5 0.1 - 0.2 . 1 Uo So Government securities 3.2 + - Other securities 1/ 3.1 Total loans and investments (less interbank) 1956 l.U 3.1 0.2 - 0.1 December 31# to last Wednesday of March 1953 Total loans (excluding interbank) Business Real estate Security Agricultural Consumer All other + 1952 1951 o.U - 0.2 + 1.7 + ~0.2 — + - 0.1 0.1 0.3 + + - 1.8 0.3 O.U 0.1 0.1 + i0.1 - 0.5 + ^0.6 y + — y 1950 + + + 2/ 19U9 0.6 - 2/ 19U8 2/ 0.3 + n.a. n.a. n.a. n.a. n. a • n.a. 0.1 0.1 0.2 y 0.8 n.a. n.a* n.a. n.a. n.a. n.a. Uo S. Government securities — 2.8 — o.U - 3.2 — 1*2 - 1.7 - 3.7 Other securities + 0.2 + 0.3 + 0.2 • + 0.6 + 0.1 + 0,3 2.3 — o.U — l.U — 1.9 - 2.7 Total loans and investments (less interbank) y l/ Less than $50 million. 2/ Data for March are affected by the date of the last Wednesday relative to the April 1 personal property tax date in Cook County, Illinois. 3/ As a result of bank structure changes in January, total credit increased about SU00 million. Note: Data, for March 25, 1959, are preliminary estimates based on data reported by a sample of member banks. Revised estimates will be available at the end of April. Not for publication L .4.3 Table 1 (continued) Changes in Loans and Investments at City and Country Banks (In millions of dollars) Last Wednesday in February to last Wednesday in March Item 1958 1959 1957 1956 + 1,052 + 1,679 277 39 + + 1,441 l/ 1954 1955 Weekly reporting banks 0 Total loans U. S. Government securities Other securities Total loans and investments + 1,053 - 1,460 + - 181 225 + 725 + 1,252 475 + + 2,452 - ± + 559 — g 5b6 + 480 + 928 - 1,865 + 76 + - - 1,069 — m - 1,626 77 Country member banks 0 Total loans U. S. Government securities Other securities Total loans and investments 337 6U2 10 + + + 153 180 71 # + + 301 221 353 103 29 292 100 + 244 621 + 447 18 Tfi 137 Last Wednesday in February to last Wednesday in March l/ Item 1953 1952 1951 1950 1948 1949 Weekly reporting banks 0 Total loans U. S. Government securities Other securities Total loans and investments 745 828 112 29 + + + + 310 63 130 503 + + + 156 + 518 95 84 "597 + 286 - 1,044 + 336 422 + 169 158 - 1,064 120 + 775 + 116 + 7 91 + - 1,848 169 - 1,837 Country member banks Total loans U. S, Government securities Other securities Total loans and investments l/ 1ST +_ + 148 31 39 + 391 199 22 247 4* + 162 171 96 200 Data for March are affected by the closeness of the last Wednesday to the April 1 tax date in Cook County, Illinois. Years most affected are 1948, 1949, 1950, 1954, and 1955. 0Note: # 265 471 Data for country banks include interbank loans, but interbank loans outstanding at these banks are generally less than $100 million. Data for weekly reporting banks include interbank loans prior to 1952. Hot for publication 247 469 110 113 L.4.3 -6Table 1 (continued) m Changes in Loans and Investments at City and Country Banks (In millions of dollars) End of December to last Wednesday in March Item 1959 1956 1957 1958 1/ 1954 1955 Weekly reporting banks Total loans U. S. Government securities Other securities Total loans and investments @ + 468 - 4,017 + *23 - 3,126 - 1,298 - 1,950 + 4o6 - 2,842 + + - 307 933 194 433 + + End of December to last Wednesday in March 1/ 500 - 2,529 + 86 - 2,943 - 1,652 + 1,685 HI 946 - 1,490 + 115 - 2,321 + 983 - 2,127 + 39 - 1,105 Country member banks 0 Total loans U. S. Government securities Other securities Total loans and investments $ + - 208 718 U9 559 Item 34 + - 295 222 107 + + 192 - 507 1952 1953 235 934 1951 + 526 + - 844 12 306 1950 1949 326 654 2 326 1948 Weekly reporting banks 0 Total loans U. S. Government securities Other securities Total loans and investments 141 - 2,317 155 + - 2,303 283 262 + 1,108 8 + 240 - 2,780 - 305 .+ 8? - 1,591 - 1,351 + 501 + + 240 3 + + + 27 270 + 62 + 18 - 858 525 - 1,237 + 182 - 1,580 + 124 - 2,794 + 75 - 2,595 + - 96 265 - 63 231 + + Country member banks * Total loans U. S. Government securities Other securities Total loans and investments + + 438 452 11 3 617 66l + + + + 405 143 95 643 457 741 l4l 144 # l/ Data for March are affected by the closeness of the last Wednesday to the April 1 tax date in Cook County, Illinois. Tears most affected are 1948, 1949, 1950, 1954, and 1955. Mote: Data for country banks include interbank loans, but interbank loans outstanding at these banks are generally less than $100 million. Data for weekly reporting banks include interbank loans prior to 1952. 1 Hot for publication L;l*.3 -7Table 1 (continued) Estimated Changes in Loans and investments at All Commercial Banks (.In billions of dollars) Tear ending December 31 Item Total loans (excluding interbank) Business Real estate SecurityAgricultural Consumer All other 1958 1957 1956 1955 195k 1953 + .U.3 + 3.5 + 7.6 +11.6 + 2.9 + 3.1* o.l + 1.8 2.1 + 0,6 0.1* - 0.1 0.9 - 0.1 0.1 +1.1 1.0 . + 0.3 + 5.5 + + + + + + + + 0.3 1.7 0.9 0.2 1/ + 0.6 + + + + + + + + + + + — + + 1.7 0.8 0.3 1.3 0.5 6.1* 2.1* 0.6 0.7 2.3 0.9 0.7 1.0 O.lt 1.0 1.5 0.2 U. S. Government securities + 8.1 - 0.3 - 3.0 - 7.U + 5.6 + 0.1 Other securities + 2.6 + 1.7 - 0.1* + O.lt + 1.6 + 0.5 +15.1 + 1**9 + 1,2 + 1*.6 +10.2 + U.i Total loans and investments (less interbank) Item Tear ending December 31 1952 1951 + 6.1* + 5.1* + 9.3 + 2.0 + 0.5 + + + + 0.3 + 0.3 + + + + + U. S. Government securities + 1.8 - 0.5 - 5.0 Other securities + 0.8 + 0,9 + 9.0 + 5*9 Total loans (excluding interbank) Business Real estate Security Agricultural Consumer All other Total loans and investments (less interbank) 1/ Less than $50 million. Hot for publication + 1.1 + 0.6 + 1.9 l*.o 1.0 0.3 0.5 + 0.1 '1956 w 191$ 191*7 191*6 + 0.5 + U.lt + 6.9 + 1*.9 lt.9 - 1.9 2.0 + 0.7 0.2 + 0.3 0.1 j + 0.2 1.6 + 1.0 0.9 + 0.3 + 0.8 + 1.1* + 0.3 + lt.0 + lt.6 + 2.2 + 2.5 + 1.0 + 0.3 + + + 1.0 0.3 1.3 0.3 -|/ 7 + lt.lt — 6.6 — 5.6 -15.8 + 2.2 + 1.0 + 0.2 + 0.9 + 0.8 + 6.5 + 5,9 - 2.0 + 2.3 -10.1 + 1.2 + U2 + O.lt L.fc.3 Bank credit. Total loans and investments at all commercial banks declined $600 million in March as a $2.3 billion reduction in holdings of U, S. Government securities more than offset increases of $1.5 billion in loans and $200 million in holdings of other securities. The reduction in holdings of Governments reflected in part cash redemption on March 2k of maturing tax certificates, about $1.2 billion of which were held by commercial banks. The decline in holdings of U. S. Government securities was larger than in most recent years and contrasts with a $1.3 billion rise in March 1958, when there was a Treasury financing. The major part of the decline in holdings of Governments occurred at city banks but country banks also reduced their holdings more than usual as shown in Table 1. The $1.5 billion increase in loans in March was larger than in any other recent year except 1956, and reflected unusually rapid growth at both city and country banks. On April 1, (not included in above data) commercial banks subscribed to $1,285 million of the $1,7^5 million 4 per cent Treasury notes maturing May 15, 1963, and to $3^0 million of the $620 million 4 per cent Treasury bonds maturing October 1, 1969. They probably took most of the $2 billion 289-day special Treasury bills, but complete data are not yet available. In addition, loans for purchasing and carrying U. S. Government securities increased substantially at the time of the financing. During the first quarter (through March 25), total credit at commercial banks declined $3.1 billion, or more than in most other recent years, after allowance for usual end-ofMarch credit movements. Last year, commercial bank credit had increased contraseasonally. This year's reduction was mainly at weekly reporting banks, which had larger declines than usual in both loans and holdings of U. S. Government securities. At other banks, credit also declined more than usual. Holdings of U. S. Government securities at these banks went down more than in most other recent years and loans went up somewhat less. Business loans at commercial banks increased $1 billion in March, more than in any other recent year except 1957 and 1956 when the increases amounted to $1.2 billion and $1.6 billion respectively. The tax-period rise of $900 million at city banks in the two weeks ending March 18 was followed by a small decline in the week of March 25 and a further nominal reduction in the week of April 1 (not included in data). This year's tax period borrowing was about $100 million larger than last year's but less than the increases of $1.1 billion in 1957 Not for publication -9Table 2 Changes in Commercial and Industrial Loans 1/ (In millions of dollars) Business of Borrower w Food processors Commodity dealers Trade concerns Total - 13 +152 + 93 Sales finance +235 All other - total Metals and products Textiles, apparel and leather Petroleum, coal, etc Other manufacturing and mining Public utilities Construction All other types of business Classified Unclassified Total change - 1*6 +21*9 + 57 Last Wednesday in February to last Wednesday in March "1955" "1957* 1956 1!H£ w - 1*6 - 80 + 73 1952 + 1*3 73 107 - 1*2 + 39 + Ill 80 + 5 + -132 + 91 - 58 -125 + 72 - 62 -129 +11*3 "TUT -191 -119 + 36 "=57T +106 + 292 + l£8 + 98 +16 + 15 + 51* +1*30 + 790 +1,139 +155 + 86 +391 +1*56 81* 111 + 73 + 29 + 87 + 21 + 1*0 1h$ + 1*9 3 +126 - 9 + 36 +105 + 17 60 + 19 + # ~*Z5T + - 77 315 TO W +JU26 "+558" + 79 + 8 + 1*3 + 33 + 51 + 1 - 10 * - 6 80 + 88 + 27 + 18 * 92 - 20 * 9 92 90 + 2h + 73 8 +781 +135 •2*81 + 91 +1,089 +1,371 +170 +297 +1*21 + 52 + 96 2/+ 19 3/+ 20 + 1*7 +205 + 10 +916 +572 +1,11*1 +1,170 2/+L89 3/+317 +1*68 +215 h9 75 2 22 6 + 67 + 21 + 1*9 - 7 l/ Prior to week ending January 11, 1956, included changes in agricultural loans. 2/ Includes CCC certificates of interest which are estimated to have declined million. 3/ Includes CCC certificates of interest which are estimated to have increased #172 million Note: Classified data are for a sample of about 210 banks reporting changes in their larger loans; these banks hold over 95 per cent of total commercial and industrial loans of all weekly reporting banks and about 75 Per cent of those of all commercial banks. ' L.4 .3 -10- Table 2 (con't) Changes In Commercial and Industrial Loans l/ (In millions of dollars) Business of Borrower Last Wednesday in December to last Wednesday in March 1959 1958 1957 1956 1955 1954 1953 1952 Food processors Commodity dealers Trade concerns Total -268 -176 + 92 -3^2 -399 -215 -305 -253 -124 -190 -103 +_26 -279 -260 -236 -422 -333 -124 -795 Sales finance -12U -509 All other - total Metals and products Textiles, apparel and leather Petroleum, coal, etc. Other manufacturing and mining Public utilities Construction All other types of business +337 +C93 Classified Unclassified Total change -197 -550 -250 -214 - 68 -532 +136 -321 +105 -219 -106 -325 +317 +300 ±82^ ±14631 +667 +115 ±J4 - 13 +321 +1,129 9?8 +129 - 77 +150 +136 +138 +204 +192 + 89 + 53 +195 - 75 +154 + 37 + 17 +192 + 95 -210 + h +109 -190 - 14 +112 +140 - 44 +214 +304 - 30 +106 + 43 + 2 + 56 + 10 + 25 + 34 + 17 + 55 - 9 - 36 - 97 - 14 -133 - 19 + 12 - 13 - 38 -139 - 65 -989 -230 +280 -116 +1,119 +222 -677 + 1 2/-48 1/+60 + 49 -102 + 18 +164 +1,120 2/+174 2/-617 - 53 - 55 -181 - 24 -203 -1,219 +561 M - 11 + 4 -301 "379 - 73 l/ Prior to week ending January 11, 1956, included changes in agricultural loans. 2/ Includes CCC certificates of interest which are estimated to have declined $170 million. 2J Includes CCC certificates of interest which are estimated to have increased $175 million. Note: Classified data are for a sample of about 210 banks reporting changes in their larger loans* these banks hold over 95 per cent of total commercial and industrial loans of all weekly reporting banks and about 75 per cent of those of all commercial banks. Not for publication and $1.3 billion in 1956. Nevertheless, it was larger than might have been expected in view of the reduced level of corporate profits in 1958 compared with other recent years and the lower percentage of the previous year's tax liability payable by large corporations in March 1959--30 per cent compared with 35 per cent in 1958 and 40 per cent in 1957. Repayments in the two weeks following the tax period were considerably less this year than in past years. In March, loans to metals processors accounted for about one-quarter of the total loan expansion and loans to sales finance companies for another quarter. Loans to trade concerns, which are now increasing seasonally, rose more than in any other year, and loans to textile concerns also rose as is usual. Seasonal repayments by food processors and commodity dealers slackened compared with earlier months this year. So far this year, business loans have declined $200 million, all at banks in New York City. Last year, they declined $1.3 billion with about $200 million of the decline in New York. In the three previous years, they had increased in a range of $300 million to $1.3 billion. During the first quarter of 1959# the volume of new loans made at city banks substantially exceeded last year's first quarter volume; the volume of loan repayments was also slightly larger in 1959. Beal estate loans at all commercial banks increased further in March. So far this year, they appear to have increased about $500 million (adjusted for structure changes), somewhat more than in any other year except 1955. Consumer loans also expanded further in March, bringing the total growth this year to $400 million, also one of the largest in recent years. Security loans continued to decline in March. Deposits and currency. Seasonally adjusted demand deposit and currency holdings of businesses and individuals increased $1.2 billion in March, as shown in Table 3. A major contributing factor was a contraseasonal decline in U. S. Government deposits which usually rise substantially in March. The increases in February and March substantially exceeded the January decline of $900 million, resulting in a first quarter rise of $900 million. At the end of March the level of deposits and currency was over 4-1/2 per cent above that of a year ago. Seasonally adjusted demand deposits and currency had also increased in March last year. Not for publication -12- Table 3 Estimated Changes in Deposits and Currency (In billions of dollars) Item Seasonally adjusted data l/it/ Demand deposits adjusted Currency outside banks Total Seasonally unadjusted data l/h/ Demand deposits adjusted ~~ Currency outside banks Total Time deposits Commercial banks Mutual savings banks U. S. Government deposits Total Factors affecting deposits and currency Bank loans and investments other then U. S. Govt. sec.3/ Commercial ~ Mutual savings Bank holdings of U. S. Government securities: Federal Reserve Commercial Mutual saving and other Gold stock and foreign deposits at F. R. Banks Other factors 1959 *eb. 26 1958 1959 1958 Year ending Feb. 27 Jan. 1 Jan. 1 March 25 March 26 March 26 March 25 March 26 1959 1958 + 1.0 + 0.2 + 1.2 + 0.9 2/ A + 0.9 + OU 2/ + 1.3 - 0.5 + — + + + - - — 5.2 — 0.3 — 6.0 - 5.7 0.9 + + + + 3.1i 2.7 0.7 1.7 1.0 0.2 0.0 0.7 o.U 0.2 0.6 - 0.7 + + + + + + 0.9 1.0 2/ 1.0 1.6 1.2 0.3 2.2 2.8 1.1 0.9 0.2 e (signs indicate + 1.8 + 1.7 + 0.2 + + + 2.0 1.6 0.2 — 2.1 + 0.2 - 2.3 1/ + l.It 0.1 1.3 0.1 - 3.2 + 0.1 0.2 0.1; — 0.2 - 1.1 2/ - o.U + + + — 5.8, fL^7 +—67S - 6.6 U — 0.6 + 5.7 + 0.5 - 0.6 + 6.2 + 6.9 + 5.3 + 1.8 7.9 6.2 2.0 2.1 - 2.0 +11.1 971? -0.2 2/ + 0.2 + + 0.1 0.7 0.8 + 9.5 + 7.7 + 2.3 + + H - 0.8 + 0.5 + - 0.7 + + + - • l.h + u - 0.2 - 1.8 7.7 L8 + 2.h 3»h 5.U 2.0 3.6 0.3 + - 2*1 - 1.7 + 0.3 — 2.0 0.5 3.9 0.8 Seasonally adjusted data are for last Wednesday throughout; unadjusted data are for last Wednesday except in case of June and December call dates, when available. 2/ Less than $50 million. 3 / Total includes foreign loans on gold, holdings of bankers' acceptances at the Federal Reserve, and loans to foreign banks; changes in these items are generally relatively small. In addition even if there were no changes in these items, changes at commercial and mutual savings banks would not add to total change which is "net" because commercial banks exclude all interbank loans, domestic and foreign. V In January as a result of the addition of all banks in Alaska, time deposits at commercial banks increased almost $100 million and demand deposits adjusted increased about #100 million. As a result of the absorption of a mutual savings bank by a commercial bank, time deposits at commercial banks increased $300 million and those at mutual savings banks declined $300 million. Note: Data for March 25, 1959, are preliminary estimates based on data reported by a sample of member banks. Revised estimates will be available at the end of April. Not for publication -13Table 3 Estimated Changes in Deposits and Currency (In billions of dollars) Item Seasonally adjusted data 1/ Demand deposits adjusted Currency outside banks Total Seasonally unadjusted data 1/ Demand deposits adjusted Currency outside banks Total Time deposits Commercial banks Mutual savings banks Uo S. Government deposits Total X*t6Hl 1956 1955 + o.U 2/ + 0.1 + + 1.8 0.1 + 0.3 + 0.5 + 1.9 + + + — — 6.2 0.9 7.1 2.U 2.0 o.U 0.2 U.9 + + 5.5 l.l 6.6 0.9 o.U 0.5 - U.2 1.2 + 0.3 + + - 2.6 3.2 - + + + + - 195U 1953 1952 + 0.7 + l.U + 0.2 + 0.3 + 0.9 + 1.7 — 5.8 - U.l — 0.6 - 1.2 5 . 3 , — 6.9 : - U.7 + 1.0 0.9 + 1.3 + 0.8 o.U + 0.5 0.6 + 0.5 + 0.5 0.2 + 0.2 + 1.3 U.2 - U.L — 3.6 — + + + 3.U 0.6 U.O 1.0 0.6 o.U 1.9 — - 0.1 0.2 0.3 + - 1.2 First Quarter 1951 - 0.2 0.2 o.u + + + 0.9 0.2 1.1 3.3 — — - 2.6 0.8 3.4 + 0.7 + + + - — 1.0 ~ — + + - U.3 0.1 0.1 0.1 3.7 0.7 19U9 2/ 2/ 2/ - u.u — 1.0 o.U o.U + + + 0.5 0.2 0.3 1.2 1.5 + - 1.5 3.U - 5.U 19U8 19U7 0 + + + 1950 — - 0.7 0.1 0.8 — + + + + - 5.6 0.9 6.c> — + + 2.9 0.6 3.5 0.8 o.U + + - 0.3 1.8 0.9 0.5 0.3 0.3 2.1 3.9 19U6 CO Seasonally unadjusted data 1/ Demand deposits adjusted Currency outside banks Total Time deposits Commercial banks Mutual savings banks Uo S» Government deposits Total 1957 + Seasonally adjusted data 1/ Demand deposits adjusted Currency outside banks Total First Quarter n.a. n.a. n.a. n.a. n.a. - 0.9 o.U + + 1.2 1.6 1.2 + o.U - 1.6 — 1.2 l/ Seasonally adjusted data are for last Wednesday throughoutj unadjusted data are for last Wednesday except in case of June and December call dates, when available 2/ Less than $50 million. Hot for publication Table 3 (con't) Changes in Deposits and Currency (In billions of dollars) Year ending December 31 Item Seasonally adjusted data 1/ Demand deposits adjusted"" Currency outside banks Total Seasonally unadjusted data 1/ Demand deposits adjusted Currency outside banks Total Time deposits Commercial banks Mutual savings banks U. S. Government deposits Total 1958 1957 1956 1955 195U 1953 + 6.2 1/ + 6.2 - 1.6 + O.U - 1.2 + 0.9 + 0.3 + 1.2 + 3.0 + 0.5 + 3.5 + 3.3 — O.U + 2.9 + 1.7 + O.ii + 2.1 + 5.3 + o.U + 5.7 + 9.2 + 7.0 + 2.3 + 0.3 +15.1 - 1.1 2/ - 1.2 + 6.9 + 5.6 + 1.7 + 0.2 + 5.9 + + + + + + + + + + + + + + + + + + + + Seasonally unadjusted data 1/ Demaid deposits adjusted Currency outside banks Total Time deposits Commercial banks Mutual savings banks U. S. Government deposits Total + + + + + ,+ + 3.U O.ii 3.8 3.1 1.5 1.8 0.6 6.3 U.l 0.2 3.9 It.9 3.2 1.9 0.3 9.0 0.9 0.6 1.5 U.6 3.0 1.8 0.8 5.3 Year ending December Item Seasonally adjusted data 1/ Demand deposits adjusted Currency outside banks Total 1.5 0.1 i.£ 3.8 2.2 1.9 2/ + 5.U 1952 1951 1950 19U9 19U8 19U7 + 3.3 + 1.3 + U.6 + U.7 + l.l + 5.8 + 5.5 - 0.2 + 5.3 + 0.8 - 0.6 + 0.2 - 1.7 -0.6 - 2.3 + 3.8 n.a. n.a. + + + + + + + + + + + + + + + 6.5 2/ + 6.5 + 0.6 + 0.2 + 0.7 - o.U + 6.7 + — + + + + + — — + + + + + + + + + 3.3 1.2 U.5 U.3 2.8 1.7 + led +10.6 6.0 0.9 6.9 2.2 1.5 0.9 0.2 9.3 0.2 0.7 O.U 1.1 0.3 0.9 0.5 1.2 1.6 o.U 2.0 1.1 0.6 0;6 1.3 O.ii 3.8 0.3 3.6 2.5 l.U + 0.9 - 1.2 + U.ti n.a. 1/ Seasonally adjusted data are for last Wednesday throughout$ unadjusted data are for last Wednesday except in case of June and December call dates, when available. 2/ Less than $50 million. Not for publication Time deposits at commercial banks increased further in March, but only a third as much as in March last year. During the first three months of the year, time deposits increased $500 million (after adjustment for structure changes), about one-quarter as much as in 1958 and 1957 but about the same as in other postwar years. Growth of deposits at mutual savings banks so far this year also appears to have been somewhat less than last year but about the same as in earlier years. Bank reserves. Net borrowed reserves of member banks averaged $140 million in March, $100 million higher than in February, as shown in Table 4. Borrowings averaged $600 million compared with $500 million in February while excess reserves averaged $460 million, the same as a month earlier. Weekly average reserve positions remained close to the monthly average level. Over the month of March, as shown in Table 5# reserves were absorbed principally by a reduction in System holdings of U. S. Government securities, currency outflow, and increases in Treasury and foreign deposits at the Beserve Banks. They were supplied mainly by a decline in required reserves. In early April, however, required reserves rose sharply as a result of deposit expansion associated with bank purchases of new Treasury issues. Interest rates. Between March 6 and March 16, the discount rate was increased to 3 per cent from 2-1/2 per cent at all Federal Reserve Banks. The effective rate on Federal futids rose to 3 per cent on March 6 but thereafter it was generally at 2-3/4 or 2-7/8 per cent, and only occasionally at 3 per cent. Other money market interest rates also rose, and at the end of March, the rate on 4-6 months prime commercial paper was 3-3/8 per cent, on bankers' acceptances, 2-7/8 per cent, and on 3-6 months' finance paper, 3-1/4—3-3/8 per cent. Not for publication -16- Table it Free Reserves (excess reserves minus meniber bank borrowings; based on average of daily figures; in millions of dollars) All member New York Chicago Reserve City - 16 - - 1 17 27 63 - 55 - 191* 366 1*22 1*21* 280 Country Quarterly averages 1958: 3hl 25 - 10 18 28 a 81 - 25 — 67 - 216 227 122 321* U95 1*93 517 - U6 — - 25 6 18 7 7 12 1* - 11*1*. 1 62 1*1* 89 57 56 - 22 - 201 - 198 - 189 - 197 337 353 1*08 1*59 399 lt08 1*71 1*26 378 305 268 268 311* 508 First Second Third Fourth - 1959: First 1958: January February March April May June July August September October November December - 51*6 383 95 96 20 1*1 January February March - 59 1*7 137 February 25 March It 11 18 25 April 1 - U6 Ill 150 131 131 138 1959: Note: - h&h - - 25 1*2 3 51 7 16 22 79 8 13 80 h — — — - 3 3 16 32 65 28 17 - 53 - 26 - 123 - 223 - 195 - 230 281 202 199 10 2 l*o 58 16 70 - 16 - 35 - 62 - 10U - 205 - 11+8 - 171 1U7 23k 197 26U 139 211 225 362 166 206 200 Data for last half of March and April are preliminary* Not for publication - -17Table 5 Changes.in .Member Bank Beserve8, with Relevant Factors (Monthly average df daily figures; in millions of dollars) Ma rch 4* # January-March Year ending March 1999 1958 1959 1958 1999 1958 -1U8 -270 =kZ2. -690 z3Ql -15I+ -152 -335 -1+17 -7a -131+ -267 -622 -122 -818 +681+ -167 -622 +355 Member bank reserve balances Total e e Required reserves if Effect of reduction in requirements Effect of deposit change Excess reserves l/ -152 + 1+ Principal factors Currency in circulation Gold stock and foreign accounts Treasury operations Federal Reserve float Other factors e Effect of above factors on reserves e -^9 •261+ + 65 -1+17 - 53 * 5k •113 C signs i Indicate <affect on reserves,! - 69 • 19 ,+1,110+ +1,31+3 ; -637 - 21 - 36 - 1+2 - 7 + h -182 j - 5U -165 - 19 -51+2 -1ia -2,11+7 '-U3 zJIk. - 22 -550 -21+3 +291+ +123 -131 -ll+l -150 -27I+ +31+1+ +38? -2,736 +121+ + + 5 -816 -1,076 +2.I1II1 -278 - 86 -103 + 17 - 3 4-108 +155 — -866 -150 -3I46 - 3 +1.960 +1,935 + 25 - 7 - 1+3 + 17 ..+ 93 + 1 -101+ * 1 -572 - 5 +1+63 + 18 + 80 + 61 z-21 Federal Reserve loans and investment s: Total If. S. Govt, securities Outright Repurchase agreements Acceptances Discounts and advances; To member banks To others # e l/ ? Data for March 1 9 ^ are preliminary. Not for publication - 50 - 6 + 1+1+ + 12 -696 - 21+ 1^4*5 Deposits and Currency (In billions of dollars) (10) (11) (12) (8) (9) (7) Seasonally Total Time deposits adjusted deposits D. S. Curmoney Demand and Gov't, rency Cursupply and deposits Demand Postal currency deposits outside Mutual Total Commerrency time dep. adjusted deposits banks (5+6+10 savings savings (7*8*9) cial adjusted outside at com'l. if +11) banks banks(1*7) (3) HI Seasonally adjusted money supply 1/ Year or month End of Dec. 1947 191*8 191+9 1950 1951 1952 1953 19 54 1955 1956 1957 1958t Jan. 29 Feb. 26 Mar. 26 Apr. 3° May 28 June 23 July 30 Aug. 27 Sept .21*. Oct. 29 Nov. 26 Dec. 31 19594 Jan. 28p jy Feb.. 2=p Mar. 25p Total (2+3) 111.1 108.8 109.0 114-3 120.1 124.7 126.8 129.7 133.2 134.4 133.2 85.2 83.5 84.3 89.8 94.5 97.8 99.5 102.8 IO5.8 106.7 105.1 25.9 25.3 24.7 24.5 25.6 26.9 27.3 26.9 27.4 27.7 28.1 146.3 144.6 145.1 150.6 158.0 165.4 170.5 176.5 181.6 185.0 189.3 27.5 27.6 27.6 27.8 27.9 28.0 2d.l 2&.1 27.8 27.9 28.2 . 28.1 188.8 190.7 192,8 194.9 196.2 196.9 199.9 200 oQ 199.4 201,0 200.9 202,6 87.1 85.5 85.8 92.3 98.2 101.5 102.5 106.6 109.9 111.4 110.3 56.4 57.5 58.6 99.2 61.5 65.8 70.4 75.3 78.4 82.2 89.I 35.2 35.8 36.1 36.3 37.9 40.7 43.7 46.8 48.4 50.6 56.1 17.7 18.4 19.3 20.0 20.9 22.6 24.4 26.3 28.1 30.0 31.7 3.4 3.3 3.2 2.9 2.7 2.5 2.4 2.1 1.9 1.6 1.3 2.3 26.5 3.6 26.1 25.4 25.4 26.3 27.5 28.1 27.9 28.3 28.3 28.3 4.1 3.7 3.9 5.6 4.8 5.1 4.4 4.5 4.7 172.3 172.7 173.9 180.6 189.9 200,4 205.7 214.8 221.0 226.4 232,3 - 132.2 I33.I 134.0 135.0 135.5 135=4 137.6 137.3 136.7 138*1 138.8 139.4 104.7 105.5 106.4 107.2 107.6 107.4^ 109.5 109.2 138.5 139.L 140.3 110.7 111.2 112.2 108 .9 110.2 110,6 111,3 27 = 8 27.9 28.1- 201.9 202.8 204Ji 107.6 111.9 115.5 89.8 90.9 92.5 93.6 94.6 95.5 96 J+ 97.0 97.2 97.4 96.7 98.3 57.6 58.8 59.9 60.7 61.5 62.-3 62.7 62.7 62.9 62.1 113.8 111.3 110.3 98. h 98.7 99.4 105.6 lo4.6 107.2 105.8 106.2 108.1 107.5 108.1 111.0 1.3 1.3 1.3 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.1 63.2 31.9 32.1 32.4 32.5 32.7 32.8 32.9 33.1 33.3 33.4 33.5 34.0 63.4 63.7 64.1 33.8 34.0 34.2 56.6 2.9 4.2 6.4 6.0 6.1 10.0 4.8 27.3 27.4 27.4 27.6 27.8 1.1 5.0 4.2 6.3 4.9 27.8 27.9 28.0 27.9 28 oO 28.8 28.7 1.1 1.1 1.1 5.3 5.0 U.U 27,6 27.7 27.9 6.2 227.7 228„1 230.9 234.4 234.3 239.5 237.2 238.7 238.1 240.6 243,7 247*5 2U5,l 21*2.7 242.0 p Preliminary l/ Seasonally adjusted series begins in 1947 and is available only for last Wednesday of the month. At commercial^ savings*. and_Federal Reserve Banks. , 3/ As a result of. the addition of all banks -in, Alaska, time deposits at commercial hanks innreasad almost $lQQ jni 11 lop and demand _daposits„adjaated innreased-about $100 million.. As. a. result of. the absorption of a. mutual saving.a. -bank time deposits at n amine rnial banks increased f3QQ million and those at mutual .savings banks . declined - $300. million „ http://fraser.stlouisfed.org/ Not, Bank for.of#ibl i oati on # Note: Spinning October 1958, da#a revised. ® # # # # Federal Reserve St. Louis —19— Loans and Investments at All Commercial Banks (In billions of dollars) Loans and investments Date u. s. Other Govt, secursecur- ities ities Total loans Business Real Secu- Farm ConAll estate rity sumer other 191*7: 1918: 191*9: 1950: 1951: 1952: 1953: 1951: 1955: 1956: Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Dec. • -31 116.2 111.2 120.1 126.6 132.2 11*1.5 11*5.5 155.7 160.3 161*. 5 69.2 62.6 67.0 62.0 61.5 63.3 63.li 69.0 61.6 58.6 9.0 9.2 10.2 12.1* 13.3 ll*.l 11*. 7 16.3 16.7 16.3 37.9 1*2.1* 1*2.9 52.2 57.6 61*. 0 67.1* 70.1* 82.0 89.7 18.2 18.9 17.1 21.9 25.9 27.9 27.2 26.9 33.2 38.7 9.1* 10.8 11.5 13.5 ll*.6 15.7 16.7 18.1* 20.8 22.5 2.1 1.7 2.3 2.9 2.6 3.1 2.9 2.9 2.6 3.1* 3.2 3.9 3.6 5.0 1*.5 5.2 5.0 1*.5 1*.3 1*.2 3.8 1*.8 5.8 7.1* 7.5 9.1* 10.9 10.9 13.2 1)4.6 2.8 3.1 3.1* 1*.2 1*.5 1*.9 5.1 5.6 1957: Mar. June Sept Dec. 27 26 25 31 161.1 161*. 3 165.1 169.3 55.5 #.7 5%.9 58.2 16.5 16.8 17.1 17.9 89.1 92.0 92.2 93.2 39.0 1*0.5 1*0.3 W.5 22.5 22.6 22.9 23.1 3.6 3.9 3.8 1*. 2 1*.2 l*.o 3.8 l*.l 11*. 6 15.3 15.6 15.7 6.8 7.2 7.3 7.3 Jan. Feb. Mar. Apr. May June July Aug. Sept Oct. Nov. Dec. 29 26 26 30 28 23 30 27 166.2 167.1 169.9 171.0 173.8 178.2 176.2 178.3 177.9 180.1 182.7 i 18U.U 57.7 58.3 59.6 62.8 63.1 61*. 2 61*. 1 66.1 61*. 7 66.2 67.7 66. U 17.9 18.2 18.9 19.3 19.1* 20.1 19.9 20.2 20.6 20.5 20.3 20.6 90.5 90.6 91.5 91.9 91.3 93.9 92.2 92.1 92.6 93. U 91*. 7 97.5 38.8 38.6 39.2 38.1* 38.1 38.9 37.9 38.3 38.7 38.9 39.3 1*0.1* 23.1 23.2 23.2 23.3 23.5 23.7 23.9 21.1 2l*.3 21*. 7 25.0 25.3 3.6 3.9 1*.2 5.1 l*.l* 5.6 1*.5 3.6 3.7 3.6 3.9 1*.7 1*.2 l*.l* l*.l* l*.l* l*.l* 1*.6 1*.6 1*.6 1*.7 1*.8 1.9 5.0 15.5 15.3 15.2 15.3 15.1* 15.5 15.6 15.6 15.6 15.6 15.6 15.8 7.2 7.1 7.1 7.2 7.2 183.8 181.9 18 L 3 67.5 65.5 6 3,2 20.lt 20.U 20.6 95.9 96.0 97.5 39.2 39. 2 1*0 . 2 25. 6 25.8 26.0 U.o 1*.2 5.0 5.0 1*.9 15.9 8.1 16.0 8.1 16.2 8.2 1958: 1 1 2k 29p 26p 31p 1959:l/Jan. 28p Feb. 25p Mar. 25p i 3.9 6.5 7.0 7.5 7.1* 7.6 7.5 7.7 8.0 8.3 1/ Total credit increased over fi*00 million in January as a result of bank structure changes. Note: * Data exclude interbank loans. 1'otal loans are after and types of loans before deductions for valuation reserves. Consumer and "other loans" are partly estimated for all dates. Other data are partly estimated on all but June and December call dates. Data for March 25* 1959 are preliminary estimates based on data reported by a sample of member banks. Beginning with October 1958, data have been revised in accordance with December 31, 1958 all-commercial bank call report figures. * Not for publication Banking Section, Board of Governors,
@FedFRASER