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# /\UG 2 4 1959 BANKING AND MONETARY DEVELOPMENTS IN JULY 1 9 5 9 RESEARCH LIBRARY # # # + # + # # Summary. Total c r e d i t a t commercial banks increased in J u l y . Loans showed f u r t h e r rapid expansion and holdings of U, S. Government s e c u r i t i e s rose s l i g h t l y . The seasonally a d j u s t e d a c t i v e money supply increased sharply. U. S. Government deposits a l s o rose while time deposits a t commercial banks showed l i t t l e f u r t h e r change. Net borrowed reserves of member banks continued t o average somewhat over $500 m i l l i o n . Bank c r e d i t . Loans and investments a t a l l commercial banks increased $1.5 b i l l i o n in J u l y , somewhat more than usual f o r t h i s month. Loans rose $1.3 b i l l i o n , about twice as much as in the comparable period of 1955 and s l i g h t l y more than in 1950 when there had been a sharp loan growth following the outbreak of h o s t i l i t i e s in Korea. In most other years, loans have declined in J u l y . Holdings of TJ. S. Government s e c u r i t i e s increased $200 m i l l i o n in July 1959 in contrast with declines in other recent months. Banks subscribed t o almost the e n t i r e $ 3 b i l l i o n issue of 2 5 8 - d a y tax a n t i c i p a t i o n b i l l s , dated July 8, and t o the $2 b i l l i o n 1-year Treasury b i l l s dated July 15. Subsequently, however, they sold Governments in s u b s t a n t i a l volume. Holdings of other s e c u r i t i e s were unchanged over the month. At weekly reporting banks in leading c i t i e s c r e d i t , increased about $900 million in July, considerably more than u s u a l . c / At country member banks, c r e d i t growth was s l i g h t l y l a r g e r than in other recent y e a r s . Loans continued t o show record expansion a t both c i t y and country banks while holdings of TJ. S. Government s e c u r i t i e s increased s l i g h t l y but l e s s than usual. ~~ 1/ E f f e c t i v e July 1, the weekly reporting s e r i e s covering banks in leading c i t i e s was revised and subsequent data are not e n t i r e l y comparable with the former s e r i e s . The p r i n c i p a l changes were: ( l ) t o increase the number of reporting banks and c i t i e s ; (2) t o create a new category of loans t o nonbank f i n a n c i a l i n s t i t u t i o n s by r e c l a s s i f y ing loans t o s a l e s finance and mortgage companies out of business loans, loans t o mutual savings banks out of loans t o banks, and loans t o other f i n a n c i a l i n s t i t u t i o n s such as savings and loan a s s o c i a t i o n s out of "other loans"; (3) t o provide a breakdown f o r a l l c i t y banks between loans f o r purchasing and carrying IT. S. Government s e c u r i t i e s and loans f o r purchasing and carrying other s e c u r i t i e s ; and (4) t o provide a d d i t i o n a l d e t a i l on m a t u r i t i e s of U. S. Government notes and bonds, and on loans t o banks. Total loans and investments now include loans t o f o r e i g n banks, which amount t o about $600 million and exclude only loans t o domestic commercial banks. The e f f e c t of the changes in coverage and concept was t o increase the l e v e l of c i t y bank c r e d i t outstanding by $8.8 b i l l i o n on July 1, from a t o t a l of $94.7 b i l l i o n f o r the old s e r i e s t o $103.5 b i l l i o n f o r the new s e r i e s . The f i v e week changes in c i t y bank c r e d i t cited in the t e x t are based on changes in the old s e r i e s f o r the week ending July 1 combined with changes in the new s e r i e s t h e r e a f t e r . Not f o r publication - L.4.3 2 - Table 1 Estimated Changes in Loans and Investments a t A l l Commercial Banks (In b i l l i o n s of d o l l a r s ) End of June t o l a s t Wednesday in July Item 1958 1959 I f 1/ - 2.0 + 1.5 Business Eeal e s t a t e Security Agricultural Consumer A l l other TJ. S. Government s e c u r i t i e s Other s e c u r i t i e s Total loans and investments ( l e s s interbank) - 0.2 0 . 4 + 0.4 + 0.8 - 0 . 2 - + 0 . 2 - 1 . 0 + 1.0 + 0.4 HI 0.1 - HI - 1 / 0.1 HI + 0.8 + HI 0 . 5 + 0.2 + 0.2 1/ - 0.2 + 0.2 + 0.1 CO HI - + 0.2 O O O O O O + 0.1 - 0.2 - 0.1 + 0.1 1/ + 0.9 + 0.6 1 - 0.3 0.3 0.1 0.1 0.2 0.3 0.4 - 1 + 0.2 - 0.9 1/ + 0*1 1/ - 0.6 - 0 . 3 + 0 . 2 - 0.4 a 0.1 End of June t o l a s t Wednesday in July Item Total loans (excluding interbank) 0 . 9 + + + + + + Other s e c u r i t i e s Total loans and investments ( l e s s interbank) - 1.4 + TJ. S. Government s e c u r i t i e s 1.0 - 1 Business Eeal e s t a t e Security Agricultural Consumer A l l other - + 1«3 1954 1955 1 Total loans (excluding interbank) 1956 1957 2/ 2/ 1953 1952 1951 1 9 5 0 1949 1948 + 0.3 + 0.2 - + - + 0.1 + + + + + - 0.2 + 0.1 1/ + 0.1 + 0.1 + 0.1 - 0.3 + 0.1 - 0.1 + 0.1 1/ - 0.2 + 4.6 + 1 . 7 1/ + 0 . 1 0.1 0.1 0.2 0.1 0.1 1/ + 5.0 + 2.1 0.6 1 . 0 0.7 - 0.1 + 0 . 2 + 0 . 1 n.a. n.a. n.a. n.a. + 0.1 * + 0.2 - 0 . 8 + 1.2 + 0.5 + 0.1 + 0 . 2 + 0 . 3 + 0.1 - + 0 . 3 + 0 . 7 + 0.7 0.3 + 0.4 + 0 . 2 + 0 . 3 n.a. n.a. n.a. XI0 St + • 0 . 1 n.a. 1/ Less than $50 m i l l i o n . n . a . Hot a v a i l a b l e 2 / Dates are f o r June 30 f o r a l l years except 1959# 1958* and 1957 which are f o r l a s t Wednesday. 2 / Data f o r a l l commercial banks w i l l not be revised t o conform with changes in weekly reporting data u n t i l a l l bank c a l l data are available on new b a s i s . Hot f o r p u b l i c a t i o n ~ 3 ~ Table 1 (continued) T.I. 4 • 3 Estimated Changes in Loans and Investments a t A l l Commercial Banks (In b i l l i o n s of d o l l a r s ) End of December t o l a s t Wednesday in July Item 1 9 5 9 ^ 1 / J Total loans (excluding interbank) Business Real e s t a t e Security Agricultural Consumer A l l other U. S. Government s e c u r i t i e s 1957 - 1 . 0 + 1.4 + 3 . 8 + 5 - 0 + 2.4 + 1.9 - 2 . 6 + 0 . 9 + 2 . 6 + 2 . 2 + 0 . 8 + 0 . 2 - 0 . 6 + 0 . 3 - + 0 . 1 + 0 . 5 + 1 . 6 - + 1 . 1 + - 5 . 6 + 1954 1955 1 9 5 6 + 6.4 Other s e c u r i t i e s Total loans and investments ( l e s s interbank) 1 9 5 8 — 0 . 8 - 1.4 + 1.6 0 . 6 + 1.1 - 0.7 - 0 . 3 - 0 . 3 - 0 . 1 + 1 . 0 + 1 . 2 0 . 1 + 0 . 1 + 0 . 1 + 1.4 + 0.7 + 5.9 - 2 . 3 - 5.4 - 5.3 + 0.9 1 / + 2 . 0 + 0 . 5 - 0.4 + 0.4 + 1 . 0 0 . 9 + 6 . 9 - 0 . 4 - + + 1 . 1 2 . 0 1/ 1 . 0 0 . 1 + 0 . 7 - 0.3 + 0.1 - 0 . 1 + 0 . 2 End of December t o l a s t Wednesday in July Item Total loans (excluding interbank) Business Eeal e s t a t e Security Agricultural Consumer A l l other 1952 1953 + 1.7 + 1 . 9 + 2 . 8 - 0.4 — 0 . 8 + 1 . 5 + 0 . 2 + 0 . 6 + 0 . 5 + 0 . 7 - 0 . 2 + 0 . 5 - 0 . 1 + 0 . 3 + + + + 1.1 0.5 0.3 1.0 0.3 + 1 . 2 + 1.3 + 0 . 2 + 0.4 + 0 . 9 + 0 . 2 - 0.4 1948 1949 1 9 5 0 1 9 5 1 - 2 . 2 n« & . n.a. n.a. n.a. + 0 . 4 n.a. + 1*9 n.a. n.a. n.a. n.a. + 0.7 n.a • U. S. Government s e c u r i t i e s - 0.1 + 1.4 - 3.3 - 2 . 0 + 1.8 - 3 . 9 Other s e c u r i t i e s + + 0 . 8 + 0.4 + 1 . 2 + + 0 . 3 + 3 . 9 - 1.0 + 1.9 Total loans and Investments ( l e s s interbank) 0 . 2 + 1.3 0 . 6 + 0.2 - 1 . 8 n . a . Hot a v a i l a b l e As a r e s u l t of bank s t r u c t u r e changes, t o t a l c r e d i t increased about $700 m i l l i o n ; loans about $400 m i l l i o n ; U . S . Government s e c u r i t i e s about $200 m i l l i o n ; and other s e c u r i t i e s about $100 m i l l i o n . 3 / Data f o r a l l commercial banks v i l l not be revised t o conform with changes in weekly reporting data u n t i l a l l bank c a l l data are available on new b a s i s . for publication DigitizedHot for FRASER 2/ - 4 Table 1 (continued) L.4.3 Changes in Loans and Investments a t City and Country Banks (In millions of d o l l a r s ) Last Wednesday in June t o l a s t Wednesday in July Item 1959 1956 1957 1954 1 9 5 5 2/ + 8 7 8 H + 835 + 104 61 tv> Total loans U. S. Government s e c u r i t i e s Other s e c u r i t i e s Total loans and investments 1 1 11 Weekly reporting banks 1958 l/ 8 8 6 + 324 - y? - 6 0 7 - 421 - 532 - 154 -1,107 + 3 9 0 + 85 33 + 442 - 6 9 6 + 4 9 6 + - 50 150 Total loans U. S. Government s e c u r i t i e s Other s e c u r i t i e s Total loans and investments + 43 2 2 9 34 + 152 + + + 76 54 50 79 + 175 + — 2 9 4 2 + 466 + 77 + 232 d_25 + 334 Last Wednesday in June t o l a s t Wednesday in July Item Weekly reporting banks + 230 + 104 +_33 + 367 + 1 + + Country member banks 1953 1952 1951 + 202 +3,494 + 109 +3,805 + 3 + 792 + 175 + 970 + 74 - 521 + 135 + 971 28 +1,077 + 192 + 621 14 + 799 4l + 222 + l6 + 197 1950 1949 + 787 - 911 + 192 + m +1,412 l/ 1948 2/ Total loans U. S. Government s e c u r i t i e s Other s e c u r i t i e s Total loans and investments - 3 6 8 - 2 2 7 - 8 5 1 + 2 8 8 + 1 1 9 + 849 + 204 + 114 + 437 + + Country member banks Total loans U. S. Government s e c u r i t i e s Other s e c u r i t i e s Total loans and investments + 2 1 1 - 5 3 + 1 6 + 1 7 3 + 54 1 7 6 + 14 + 243 93 + 1 8 0 + 2 + 2 7 5 l / Country bank data are f o r June and December c a l l d a t e s . 2 / Beginning July 1, 1959, changes are on revised b a s i s . Mote: Data f o r country banks include interbank loans, but interbank loans outstanding a t these banks have generally been l e s s than $100 million although on March 12, 1959, they vere close t o $200 m i l l i o n . Data f o r weekly r e p o r t i n g banks include interbank loans p r i o r t o 1952. Hot f o r p u b l i c a t i o n # LA.3 - 5 Table 1 (continued) Changes In Loans and Investments a t City and Country Banks (In millions of d o l l a r s ) # End of December t o l a s t Wednesday in July Item Weekly reporting banks 1959 2 / 1956 1955 1954 +3,084 -4,741 -2,120 +1,421 + 789 + 90 3/ Total loans TJ. S. Government s e c u r i t i e s Other s e c u r i t i e s Total loans and investments e 1957 1 9 5 8 1/ +3,216 -4,306 68 -1,158 - 2 , 5 0 2 - +5,579 +1,448 +4,525 + -1,560 +2,333 -4,072 - 482 -2,221 + 7 6 1 + 1 , 1 6 5 + 1 , 4 1 3 + 3 0 6 2 0 9 -1,413 6 2 + 6 5 -1,592 Country member banks $ $ Total loans U. S„ Government s e c u r i t i e s Other s e c u r i t i e s Total loans and investments # + 423 +1,490 - 810 + 3^ + 7 0 9 -1,440 Hi +1,532 -1,014 + 2 8 9 + 806 End of December t o l a s t Wednesday in July Item Weekly reporting banks # +2,290 -1,125 + 77 +1,242 1953 1952 + 6 8 0 - 412 ±126 + 404 l/ 1950 1949 1948 +1,477 -1,742 -2,528 +2,603 + + + 707 + 531 -2,357 + 94 -1,732 + 77 - 213 10 - 145 +1,128 - 785 + 231 + 574 1 9 5 1 3/ Total loans TJ. S. Government s e c u r i t i e s Other s e c u r i t i e s Total loans and investments - 18 2 6 2 + 105 - 175 + 369 +1,044 + 703 +2,116 + 9 1 0 - 2 , 7 2 5 + 140 8 7 2 - 1 , 6 7 5 + 607 + 8 2 9 + 1 , 0 2 9 - 9 0 8 8 5 + 1 6 6 + 8 7 6 3 2 Country member banks Total loans TJ. S. Government s e c u r i t i e s Other s e c u r i t i e s Total loans and investments + 950 - 184 T l M +1,029 + 240 + 123 +1,392 + 2%) +1,199 A ^ l / Country bank data are f o r December c a l l d a t e s , 2 / Country bank a s s e t s and l i a b i l i t i e s were increased about $350 m i l l i o n in A p r i l as a r e s u l t of inclusion of a n a t i o n a l bank in Hawaii and t h e s h i f t i n g of six n a t i o n a l banks in Alaska from nonmember banks. (Loans +200; U. S, Govt. +100j other s e c u r i t i e s +50; demand deposits adjusted +200; time deposits +150). 2 / Beginning July 1, 1959# changes are on revised b a s i s . Note; Data f o r country banks include interbank loans, but interbank loans outstanding a t these banks have generally been l e s s than $100 million although on March 12, 1959# they were close t o $200 m i l l i o n . Data f o r weekly reporting banks include interbank loans p r i o r t o 1952. # Hot f o r publication Over the Janaury-July 1959 period, t o t a l c r e d i t a t commercial banks was about unchanged ( a f t e r adjustment f o r bank s t r u c t u r e changes). This appeared t o be about in l i n e with the average movement in other recent y e a r s . Credit a t c i t y banks declined somewhat more than usual while c r e d i t expansion a t country banks was g r e a t e r than in most recent y e a r s . For a l l commercial banks combined, both the increase in loans and the reduction in holdings of U. S. Government s e c u r i t i e s were greater than in any other y e a r . Business loans a t a l l commercial banks (which w i l l not be revised t o exclude loans t o s a l e s finance companies and other f i n a n c i a l businesses u n t i l c a l l report data become a v a i l a b l e ) increased $300 million in J u l y , as shown in Table 1, s l i g h t l y more than in 1955 and s l i g h t l y l e s s than in 1950. In mist other y e a r s , business loans had declined. I t appears t h a t most of t h i s increase was accounted f o r by loans t o f i n a n c i a l i n s t i t u t i o n s in the business category (sales finance and mortgage companies). Loans t o f i n a n c i a l i n s t i t u t i o n s a t c i t y banks increased $145 million in the 4 weeks a f t e r July 1 and loans t o sales finance companies rose $135 m i l l i o n in t h e previous week. Business loans a t c i t y banks (which now exclude sales finance and mortgage companies as well as other f i n a n c i a l businesses) showed l i t t l e net change in J u l y , as large increases in some areas were o f f s e t by declines elsewhere. Loans t o metals processors increased f u r t h e r . In a l l other recent y e a r s , these loans declined in t h i s p e r i o d . Loans t o t e x t i l e manufacturers showed record expans i o n . Loans t o public u t i l i t i e s , which began increasing in the l a t e spring following s u b s t a n t i a l net repayments e a r l i e r in the year, rose f u r t h e r whereas generally they decline in t h i s p e r i o d . Loans t o food processors continued t o decline and those t o commodity dealers began t o increase as i s usual. Loans t o trade concerns a l s o increased whereas they had declined in July of every other recent year except 1955. Real e s t a t e loans a t a l l commercial banks are estimated t o have increased $300 million f u r t h e r in J u l y . So f a r t h i s year, growth of $1=7 b i l l i o n ( a f t e r adjustment f o r bank s t r u c t u r e changes) has been about the same as the record 1955 r i s e . Consumer loans a l s o rose f u r t h e r in July bringing the increase since December t o $1.6 b i l l i o n , s l i g h t l y more than in any other y e a r . Security loans rose somewhat in July as increases in loans f o r purchasing and carrying U. S. Government s e c u r i t i e s o f f s e t reductions in other s e c u r i t y loans. Loans on Government s e c u r i t i e s rose sharply a t the time of the Treasury financing in e a r l y July but subsequently repayments were l a r g e . Hot f o r p u b l i c a t i o n # L.4.3 - 7 Table 2 Changes In Commercial and I n d u s t r i a l Loans l/ (In millions of d o l l a r s ) Last Wednesday of June t o l a s t Wednesday of July Business of Borrower 1959 2 / 0oo& processors Commodity dealers Trade concerns Total Sales finance ^ 1 1 other - t o t a l Metals and products T e x t i l e s , apparel and l e a t h e r Petroleum, coal, e t c , 0 Other manufacturing and mining Public u t i l i t i e s Construction A l l other types of business Classified Unclassified Total change ^jfotal change excluding sales finance - 120 1958 - 1 1 6 1957 - 8 3 - 104 - 107 + 42 - 42 - 53 3/+ 134 - 115 - 2 8 0 - 563 -358 - 2 2 9 + 55 - 14 - 22 - 85 + 61 - 11 + 34 - + 1 8 9 1 + 42 + + + 20 - 11 1 - 126 + 10 - 114 + 29 + 123 + 5 - 785 - 67 + 128 - 6 2 8 5 2 - 737 - 21 27 + 9 - 83 + 9 1956 - 100 + 142 4 6 6 5 - 122 - 6 5 + ~ " 3 8 + 66 iL-JO + 31 - 204 - ± _ N + 132 - 1 2 1 + 2 9 + 64 + 75 - 2 8 - 16 + 24 - 1955 - 139 - 9 0 - 787 - 2 2 9 - 507 - 37 1954 1953 + 5 + 66 + 25 - 14 - 1 1 9 - 1 6 - 1 1 0 + 3 6 - 27? -133 - 39 - 5 0 + 18 + 36 - 64 + 34 + - + 2 8 2 9 13 + 36 - 88 + 1 6 + 65 - 2 9 + 2 - 2 1 + 1 1 - 17 5 + 125 - 245 4 / - 100 I h 115 - 113 - 41 4/+ 2 5 2/- 360 - 154 25 4/+ 6 2 2/- 346 - 190 l / P r i o r t o week ending January 11, 1956, included changes in a g r i c u l t u r a l loans. 2 / Includes changes on unrevised b a s i s f o r week of July 1 and revised b a s i s t h e r e a f t e r . / Excludes s a l e s finance a f t e r July 1. _ / Includes CCC c e r t i f i c a t e s of i n t e r e s t which are estimated t o have declined $100 m i l l i o n . 2 / Includes CCC c e r t i f i c a t e s of i n t e r e s t which are estimated t o have declined $40 m i l l i o n . Note; C l a s s i f i e d data are f o r a sample of about 210 banks reporting changes in t h e i r larger loans; these banks hold over 95 per cent of t o t a l commercial and i n d u s t r i a l loans of a l l weekly reporting banks and nearly 75 per cent of those of a l l commercial banks. f Not f o r p u b l i c a t i o n L.4.3 - 8 - Table 2 (continued) Changes In Commercial and I n d u s t r i a l Loans l / (In millions of d o l l a r s ) End of December t o end of J u l y ^Business of Borrower 1959 2 / Food processors Commodity dealers Trade concerns • Total Sales finance A l l other - t o t a l Metals and products • T e x t i l e s , apparel and l e a t h e r Petroleum, coal, e t c . Other manufacturing and mining Public u t i l i t i e s S Construction A l l other types of business Classified Unclassified Total change Total change excluding sales finance 1958 579 - 774 317 - 263 + 2 8 9 - 172 T - # -1,216 - 3/+ 455 - 9 6 8 +1,283 - 3 6 8 - 212 m 1957 - 1956 538 497 43 -1,078 + 402 244 + 1 6 7 1954 - - 500 - 740 - 2 9 7 - 6 0 8 - 86 +1,722 + 706 - 1955 - 525 605 395 116 824 - 189 - +2,989 +1,241 +1/6?? - 506 + 736 710 + 395 131 + + 168 263 + + 488 + + 248 331 + 260 + 146 9k - 303 + 103 + 66 + + 223 429 3 + 445 + 337 + 39 + + + 386 2 6 7 + -2,553 - 247 739 277 + a/+i,32o -2,800 462 +2,014 + 865 -1,832 376 +2,539 4/+ +1,130 + 1 9 0 + 9 8 1 7 2 +1,985 2 9 182 1 6 9 + + 208 57 1 6 91 +1,382 4/_ 2 7 9 4/+1,103 1952 + 192 -1,156 il R - M + 552 + 268 + 62 - 156 - 225 + 1953 + 53 1 8 5 7 5 - 31 + 14 38 87 + + + 106 67 13 + - 473 274 - 747 - 6 9 4 + 77 -1,559 1 / - 2 9 7 2/-l,856 551 2 / - l , 6 6 7 l / P r i o r t o week ending January 11, 1956, Included changes in a g r i c u l t u r a l loans. 2 / Revised b a s i s a f t e r J u l y 1. 3 / Excludes s a l e s finance a f t e r J u l y 1. ¥ / Includes CCC c e r t i f i c a t e s of I n t e r e s t which are estimated t o have declined $820 m i l l i o n . 5 / Includes CCC c e r t i f i c a t e s of i n t e r e s t which are estimated t o have increased $25 m i l l i o n . Iiotes C l a s s i f i e d data are f o r a sample of about 210 banks reporting changes in t h e i r larger loans, these banks hold over 95 per cent of t o t a l commercial and i n d u s t r i a l loans of a l l weekly reporting banks and nearly 75 per cent of those of a l l commercial banks. *Not f o r publication Deposits and currency. Seasonally a d j u s t e d demand deposit and currency holdings of businesses and individuals increased $1.4 b i l l i o n in J u l y , following l i t t l e change in May and June. At the end of J u l y , the money supply was 3-1/2 per cent above the l e v e l a year e a r l i e r . So f a r t h i s year deposits and currency, seasonally a d j u s t e d , have increased $2.9 b i l l i o n , or a t an annual r a t e of 3 - l / 2 per cent, about the same as in the f i r s t seven months of 1955* U. S. Government deposits a t commercial banks increased $700 million in J u l y . Usually they decline in t h i s month. Time deposits a t commercial banks declined s l i g h t l y in J u l y . Deductions a t c i t y banks, not unusual in J u l y , were about o f f s e t by f u r t h e r expansion a t other banks. So f a r t h i s year, these deposits have increased $1.6 b i l l i o n ( a f t e r a d j u s t ment f o r bank s t r u c t u r e changes) compared with $6.2 b i l l i o n l a s t year and an average growth of $1.4 b i l l i o n over the 1946-1957 p e r i o d . Time deposits a t mutual savings banks Increased modera t e l y f u r t h e r In July bringing growth so f a r t h i s year t o $1 b i l l i o n ( a f t e r adjustment f o r s t r u c t u r e changes) s l i g h t l y l e s s than l a s t year but s l i g h t l y more than the average of e a r l i e r postwar y e a r s . Deposit turnover. The seasonally adjusted annual r a t e of turnover of demand deposits in 337 c i t i e s outside New York and other f i n a n c i a l centers Increased f u r t h e r in J u l y t o a new postwar high of 25.4, almost 11 per cent above the r a t e In J u l y 1958. Turnover a l s o Increased in Hew York City t o 59-5 times, over 6 per cent above the r a t e a year ago. Bank r e s e r v e s . Net borrowed reserves of member banks averaged $535 m i l l i o n in July compared with $515 million in June, as shown in Table 4. In A p r i l and May, net borrowed reserves had averaged about $300 m i l l i o n . Borrowings rose s l i g h t l y in J u l y t o an average of $955 m i l l i o n while excess reserves showed l i t t l e change, averaging $420 m i l l i o n . At c e n t r a l reserve c i t y banks in Hew York net borrowed reserves increased $140 m i l l i o n over the month but a t other c i t y banks they declined. Free reserves rose somewhat a t country banks. Not f o r p u b l i c a t i o n — 10 L.4.3 - Table 3 Estimated Changes in Deposits and Currency (In b i l l i o n s of d o l l a r s ) Item Seasonally adjusted data l / Demand deposits a d j u s t e d Currency outside banks Total Seasonally unadjusted data 1 / Demand deposits adjusted Currency outside banks Total Tine deposits Commercial banks Mutual savings banks U. S. Government deposits Total V + 1.4 -+ I1.4 T liz! +1.7 - 0.1 2/ + 0.1 M + 2 . 5 4.4 + 4.4 + 1.5 + 0.1 + 2 . 6 +_O2I + 0 . 3 + 2 . 2 + 2 . 9 + 2 . 4 - 3 . + 0 . 1 + 2 . 5 + 0 . 8 + 0 . 7 2 . 1 6 . 2 3.0 + 0 . 1 0 . 7 1 . 2 1 . 8 1 . 2 1 . 0 0 . 1 1 . 1 0 . 6 0 . 1 T79 + 1 0 . 4 + 1 2 . 0 + 2 . 1 - 0, 1:1 - 5.4 - 2*1 + & - TTTj 4.3 0.4 477 2 . 2 - 0.4 - 2.6 7.3 + 1.6 + 1.5 + 0.1 T7Z 9.7 7.9 4 . 5 (signs indicate e f f e c t on deposits and currency) + 1.7 + 1«3 + 0.1 - 1 . 4 + - 1 . 5 + 6.i + 2.7 + 1.0 + 0 . 3 + + 1 . 9 + 6 . 3 6 . 7 0 . 9 + 8.7 1 . 6 + 0 . 6 - - 0 . 1 + 0 . 2 + 0.1 + 0 . 2 - 0 . 5 - 5 . 6 + 5 . 9 - 3.3 - 0 . 1 + 0 . 1 - 0 . 1 - 0 . 2 - - 0 . 2 - 0 . 9 - 1.5 + 0 . 1 - 0 . 2 - + - CVJ 2 . 0 0 . 7 0 . 6 H + + + O + 7.2 + 4.3 + 2.8 1 +13.8 +12.4 + 1*9 O Factors a f f e c t i n g deposits and currency Bank loans and investments . other than TJ. S. Govt , sec ^2/ Commercial Mutual savings Bank holdings of U. S. Government s e c u r i t i e s : Federal Reserve Commercial Mutual saving and other Gold stock and f o r e i g n deposits a t F . B. Banks Other f a c t o r s Year ending 1959 z m z 2 m June 25- June 26J a n . 1 - J a n . 1— July 29, J u l y 30, July 29 July 30 J u l y 29 4 / July 30 1959 1958 2 . 6 1 . 6 0 . 3 + 7.8 - 0.7 - 1 . 6 - 1.3 + 0 . 2 — 2 . 6 l a s t Wednesday except in case of June and December c a l l d a t e s , when a v a i l a b l e . Data f o r 1958 are f o r l a s t Wednesday throughout. 2 / Less than $50 m i l l i o n . 3 / Total includes f o r e i g n loans on gold, holdings of bankers' acceptances a t the Federal Reserve, and loans t o f o r e i g n banks; changes in these items are generally r e l a t i v e l y small. In addition even if t h e r e were no changes in these items, changes a t commercial and mutual savings banks would not add t o t o t a l change which i s "net" because commercial banks exclude a l l Interbank loans, domestic and f o r e i g n . 4 / In April 1959 as a r e s u l t of t h e addition of a bank in Hawaii, demand deposits adjusted increased about $100 million and time deposits Increased about $100 m i l l i o n . In January 1959 as a r e s u l t of the addition of a l l banks in Alaska, time deposits a t commercial banks increased almost $100 million and. demand deposits adjusted increased $100 m i l l i o n . As the r e s u l t of the absorption of a mutual savings bank, time deposits a t commercial banks Increased $300 m i l l i o n , and those a t mutual savings banks declined $300 m i l l i o n . Not f o r p u b l i c a t i o n - L.4.3 11- Table 3 (continued) Estimated Changes in Deposits and Currency (In b i l l i o n s of d o l l a r s ) Item Seasonally a d j u s t e d data l / Demand deposits a d j u s t e d Currency outside banks Total Seasonally unadjusted data l / Demand depos i t s a d j u s t e d Currency outside banks Total Time deposits Commercial Mutual savings U. S. Government deposits Total <D Item + Seasonally unadjusted data l / Demand deposits adjusted Currency outside banks Total Time deposits Commercial Mutual savings U. S. Government deposits Total + 1.3 + 0.3 HI Seasonally adjusted data 1/ Demand deposits adjusted Currency outside banks Total 1957 Jan.Julv + + 4.8 0.5 5.3 4.5 3.8 + 0 . 9 - 0.3 - 1.2 1951 Jan.July 1956 Jan.Juiy + 0.8 + 0.1 + 0.9 + + + - 4.6 0.5 5.1 2.3 1.2 1.1 0.2 3.5 1950 Jan.July 1955 Jan.July 1954 Jan.Julv + 2.5 + 0.3 + 2.8 + 0.9 + 0.4 + 1.3 + 2.5 + 0.8 + 3.3 + 2.4 0.1 2.5 2.4 + 1 . 5 - 2.8 - 3.3 - 4.1 - 0 . 3 - - 0 . 1 - 3 . 1 + + + 4.4 2.6 1.6 1.1 + 2 . 7 + 0 . 9 + + + + - 1.8 0.9 1.1 1.4 0.2 1949 Jan»July 1 . 0 - b.3 + 3.3 + 2 . 3 + 1.1 - 0.4 - 0.9 1948 Jan.July + 2.9 ' - 0.2 + 2.7 + 0.3 - 0.3 - 2.5 - 0.2 + - - 2.7 — 0.8 - 3.5 + 0.9 + 0.4 + 0.6 - 1.7 + 0.9 + 0 . 5 + 0 . 5 + 1 . 9 - - 2 . 0 0 . 6 - 2.4 + 0.8 - 0 . 8 + 0 . 8 + + 0 . 3 0 . 5 + 0.4 + 1 . 3 + 0.2 + 0.6 2/ + 0.5 k.5 1952 Jan.July + 1.8 - 0.4 + 1.4 + 2.1 + 0.7 + 2.6 0 . 1 1953 Jan.July - 1 . 2 - 0.3 - 1.5 - 3.8 - 1.0 - 4.8 1947 Jan.July + 1.0 + 3.7 + 3.5 1946 Jan.July + 1.5 n.a. n.a. n.a. n.a. n.a. - 0.3 + 4.4 - 0.1 - 0 . 7 + 1 . 8 + + - l.l 0.6 1.4 0.6 - 1.0 + b.k + 3.9 + 2 . 7 + 1.0 -13.8 - 5 . 5 n . a . Hot a v a i l a b l e . l / Seasonally a d j u s t e d data are f o r l a s t Wednesday throughout; unadjusted data are f o r l a s t Wednesday except in case of June and December c a l l dates, when a v a i l a b l e . 2 / Less than $50 m i l l i o n . l o t f o r -publication L.4.3 12 - Over J u l y , as shown in Table 5> reserves were absorbed by a currency outflow of $235 m i l l i o n ; t h i s was somewhat l a r g e r than usual, but growth was l e s s rapid than in the spring and e a r l y summer. In a d d i t i o n , required reserves rose $205 m i l l i o n . S u b s t a n t i a l increases in required reserves in e a r l y July associated with bank c r e d i t expansion r e s u l t i n g from bank purchases of new Treasury b i l l s were o f f s e t in p a r t by subsequent reductions. There was some f u r t h e r moderate gold outflow but most of the reduction in gold stock r e f l e c t e d the carry-over on an average b a s i s of the payment of $3^4 m i l l i o n in gold in l a t e June t o the I n t e r n a t i o n a l Monetary Fund in connection with the increase in quotas of member c o u n t r i e s . Free gold was used t o meet $300 m i l l i o n of the payment and t o t h a t extent t h e t r a n s a c t i o n did not a f f e c t member bank reserve balances. Beserves were supplied in July p r i n c i p a l l y by Federal Reserve purchases of $460 m i l l i o n of U. S. Government s e c u r i t i e s . Not f o r p u b l i c a t i o n - 13 - 3 Table 4 Free Reserves (excess reserves minus member bank borrowings; based on average of d a i l y f i g u r e s ; in millions of d o l l a r s ) All member New York Chicago Reserve city Country Quarterly averages - 10 18 28 44 - 25 - - 56 - 46 - 25 - 1958: F i r s t Second Third Fourth 314 508 341 25 - 1959: F i r s t Second - 82 - 363 - 1958: 1959J January February March April May June July August September October November December January February March April May June July June 24 July 1 8 15 22 29 Note: 122 324 495 493 547 484 546 383 95 96 - 20 4l - 59 - 47 - 140 - 258 -318 - 513 - 535 - 419 604 592 591 - 381 — 498 - - - - - 52 42 3 51 7 16 22 79 8 43 16 4 1 17 - 27 63 - 55 - 194 3 66 422 424 280 67 - 215 - 393 225 137 25 6 18 - 144 1 62 44 89 57 56 - 197 337 353 408 459 399 408 471 426 378 305 268 268 - 223 281 - 7 7 12 4 — —— 3 3 l6 80 - 65 - 16 89 - 122 - 64 - 4l 28 - 51 - 15 - 154 - - 46 12 107 160 192 146 - 32 53 26 - 228 - 284 - 360 - 46 - 535 - 48l - 56 - - 39 71 47 31 33 202 194 178 133 101 146 - 195 63 - Data f o r second half of July are preliminary. Hot f o r p u b l i c a t i o n - 22 - 201 - 198 - 189 519 493 545 491 457 404 - 202 60 131 106 299 85 - 14 - L.4.3 Table 5 Changes In Member Bank Reserves, v i t h Relevant Factors (Monthly average of d a i l y f i g u r e s ; in millions of d o l l a r s ) July J a n . - July 1958 1959 9 - 228 - 811 + 62 ro O 1959 Year ending July 1 Item 8 9 0 + 297 - 642 + 297 - 235 -1,440 + 798 + 122 1958 1958 1959 Member bank reserve balances Total Required reserves 1 / E f f e c t of reduction in requirements E f f e c t of deposit change Excess reserves 1 / + 220 + + 206 - 2 1 - 132 - - 2 1 - 132 + 3 0 - -1,440 + 550 + 79 + 206 + 14 Principal factors Currency in c i r c u l a t i o n Gold stock and f o r e i g n accounts Treasury operations Federal Reserve f l o a t Other f a c t o r s E f f e c t of above f a c t o r s on reserves 9 6 (signs indicate e f f e c t on reserves) -233 - 225 - 348 - 226 + 321 - 8 9 6 + 6 6 8 - 7 8 5 -l,44l - 1 , 5 7 8 + 2 7 + 3 7 1 - 5 0 1 + 8 1 - 1 8 9 - 7 6 - 148 - 1 , 2 6 5 + 234 + l4 + 64 + + 44 Z - - 423 - 730 -1,436 - 1 , 9 8 7 -1,598 + ^33 + 501 + +2,049 +1,078 + 469 + 110 + T3B +1,204 + 1 , 8 6 7 2 6 9 - 42 26 + 321 - 473 I + - 159 233 Ill Federal Reserve loans and investments: Total + - 54 1 + 36 - 5 Data f o r J u l y 1959 are preliminary. Not f o r p u b l i c a t i o n - 52 3 - 33 - - 28 14 + 4oo + 5 6 2 6 ±1426 +1,603 - 367 3 HMD VO l/ + 520 1 1 U. S. Govt, s e c u r i t i e s Outright Repurchase agreements Acceptances Discounts and advances: To member banks To others + 489 + 1 , 1 3 6 + 6 8 - 15 + 848 + 1 2 +2,020 - 153 + 19 - 8 0 8 L.b.3 Year or month —l5 — Deposits and Currency ( i n b i l l i o n s of dollars) (11) (12) (9) (10) (8) (5) (6) (7) (1) (U) (2) (5) Seasonally adjusted Seasonally Total Time deposits adjusted money supply 1 / U. S. Cur- deposits Demand money and rency Gov't, Cursupply and deposits Total Commer- Mutual Postal deposits outside currency Demand rency Total deposits time dep. adjusted (7+8+9) c i a l y banks (5+6+10 savings savings (2+3) adjusted outside a t com'le +11) banks banks (1+7) End of Dec 172.3 26.5 2.3 17.7 3.b 11*6.3 87.1 35.2 56.b 111.1 85.2 25 19U7 26.1 172.7 3.6 35.8 I 8 . b 3.3 lbb.6 108.8 85.5 25 57.5 1918 83.5 173.9 b.l 25ob 36.1 19.3 58.6 3« 85.8 11*5.1 81*.3 21* 109.0 1919 180.6 2, 25.b 20.0 36.3 3.7 21* 150.6 59.2 92.3 89.8 lib.3 1950 26 189.9 2, 3.9 98.2 61.5 158 120.1 37.9 20.9 25 91*.5 1951 200.b 27 2, 22.6 5.6 65.8 bO. 7 26 101.5 165 1952 97.8 12U.7 28 205.7 b< 2, 2b.b 70.b 102.5 b3.7 170 126.8 27 99.5 1953 21b.8 27 2 , b6.8 26.3 106.6 5, 26 176 102.8 75.3 195b 129.7 221.0 28 1. 28.1 b, b8.b 181 78.b 109.9 27.1* 105.8 133.2 1955 226.b 28 1, 82.2 30.0 b, 111.1* 50.6 185.0 106.7 27.7 1956 13b.b 28 232.3 1, 89.1 56.1 b.7 110.3 31.7 28.1 189.3 105.1 133.2 1957 1958: 10.0 27.8 239.5 1.2 106.2 61.5 32 ,8 28.0 196.9 95.5 June 23 135.b 107.1* 237.2 b.8 1.2 27.9 108.1 62.3 32 ,9 28.1 96.b 199.9 109.5 July 30 137.6 28.0 6.2 238.7 1 . 2 .1 62.7 28.1 200.0 97.0 109.2 107.5 33 Aug. 27 137.3 238.1 27.9 1.2 .2 5.0 108.1 62.7 199.1* 108.9 27.8 97, 33 ,3 Sept.2b 136.7 2b0.6 28.0 1.2 b.2 62.9 111.0 201.0 33 ,b 27.9 97,.b 138.1 110.2 Oct. 29 28.8 1.1 2b3.7 6.3 62.1 33 .5 96,.7 111.9 28.2 200.9 110.6 Nov. 26 138.8 28.7 1.1 2b7.5 98,,3 63.2 3b »0 b.9 202.6 28.1 115.5 Dec. 31 139. b 111.3 1959: 2b5.1 1.1 27.6 113.8 98.b 63.b 33.8 201.9 5.3 27.8 Jan. 28 2 / 138.5 110.7 2b2.7 1.1 27. 5.0 202.8 3b.0 H I . 3 98.7 63.7 1 1 1 . 2 Feb. 25 27.9 139.1 2b2.0 1.1 27. 6 b . l b.b 110.3 28.1 112.2 20b.b 3b, 99.5 Mar. 25 11*0.3 z 2b5.b 1.1 27, 5.1 112.5 28.2 6b.5 205.2 99.9 3b, Apr. 29p b / 1U0.7 112.5 28, 2bb.8 1.1 100.b 6b.9 110.7 112.6 28.3 205.8 5.7 3b, May 27p lb0.9 28, 2b5, 1.1 101.0 5.2 206.2 110.7 28.U 65.3 3b, 11*0.9 112.5 June 2bp 28, 1.0 2b7 100.9 5.9 112 .b 207.6 65.3 28.b 3b, July 29p 11*2.3 113.9 1/ Seasonally adjusted series begins i n 1947 and i s available only f o r l a s t Wednesday of the month. p P-pgl i mi nary. 2 / At commercial, savings, and Federal Reserve Banks. 3 / As a r e s u l t of the addition of a l l banks in Alaska, time deposits a t commercial banks increased almost $100 million and demand deposits adjusted increased about $100 million. As a r e s u l t of the absorption of a mutual savings bank, time deposits at commercial banks increased $300 million and those a t mutual savings banks declined $300 m i l l i o n . b / As a r e s u l t of inclusion of a national bank in Hawaii, demand deposits adjusted increased about $100 million and time deposits a t commercial banks about $100 m i l l i o n . http://fraser.stlouisfed.org/ Not f o r y b l i c a t i o n Federal Reserve Bank of St. Louis L.4.3 - 1 6 - Loans and Investments a t A l l Commercial Banks (In b i l l i o n s of d o l l a r s ) Loans and investments Date 1947: 1948: 19^9: #950: 1951: 1952: 1953: 1954: 1955: •L956: 1957: 1958: I » 1959: i Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. 116.2 31 31 31 31 31 31 31 31 31 31 31 114.2 120.1 126.6 132.5 141.5 145.5 155.7 160.3 164.5 169.3 166.2 J a n . 29 Feb. 26 Mar. 26 Apr. 30 May 28 June 23 July 30 Aug. 27 Sept.24 Oct. 29 Nov. 26 Dec. 31 1/ J a n . Feb. Mar. 2 / Apr. May June July 1 6 7 . 1 1 6 9 . 9 174.0 173.8 1 7 8 . 2 1 7 6 . 2 178.3 177.9 180.1 6 9 . 2 62.6 6 7 . 0 9.0 9.2 10.2 62.0 12.4 61.5 63.3 63.4 6 9 . 0 6 1 . 6 5 8 . 6 5 8 . 2 57.7 58.3 59.6 13.3 14.1 14.7 16.3 16.7 16.3 17.9 17.9 1 8 . 2 1 8 . 9 62.8 19.3 6 3 . 1 19.4 64.2 20.1 64.1 19.9 66.1 20.2 64.7 20.6 66.2 20.5 67.7 66.4 20.3 1 8 1 . 9 67.5 65.5 1 8 1 . I 6 3 . 2 183.7 1 8 3 . 6 63.5 62.4 20.4 20.4 20.6 20.9 1 8 3 . 8 6 0 . 6 185.3 6 0 . 8 1 8 2 . 7 184.4 28 25 25 29p 27p 24p 29p U. S. Other Total Govt; secursecur- i t i e s loans ities 1 8 3 . 8 20.6 37.9 42.4 42.9 52.2 57.6 64.0 67.4 70.4 82.0 Seal SecuConBusiness e s t a t e r i t y Farm sumer 18.2 16.9 17.1 21.9 25.9 27.9 27.2 2 6 . 9 89.7 93.2 33.2 38.7 40.5 90.5 38.8 91.5 91.9 91.3 93.9 39.2 38.4 38.1 38.9 37.9 38.3 38.7 38.9 39.3 40.4 90.6 92.2 92.1 92.6 93.4 94.7 97.5 95.9 9 6 . 0 97.4 99.3 100.5 20.8 20.6 102.6 20.6 103-9 38.6 39.2 39.2 40.2 40.6 41.4 42.5 42.8 9.4 10.8 11.5 13.5 14.6 15.7 1 6 . 7 18.4 20.8 2 2 . 5 23.1 2 3 . 1 23.2 2 3 . 2 23.3 23.5 23.7 23.9 24.1 24.3 24.7 2 5 . 0 25.3 2 5 . 6 25.7 25.9 2 6 . 3 2 6 . 6 2 6 . 9 2 7 . 2 2.1 2.3 2.6 2.9 2.6 3 . 2 3 . 6 4 . 5 5 . 0 4 . 3 4.2 3.6 3.9 4.2 5.0 4.4 5.6 4.5 3.6 3.7 3.6 3.9 4.7 4.2 4.0 3.9 4.3 4.1 4.0 4.1 1.7 2.9 3.1 2.9 3.4 3.9 5.0 5.2 4.5 4.2 4.1 3.8 4.8 5.8 7.4 7.5 9.4 All other 2.8 3.1 3.4 4.2 4 . 5 4 . 9 1 0 . 9 5 . 1 10.9 5 . 6 13.2 14.6 15.7 6.5 7.0 7.3 4.2 4.4 4.4 4.4 4.4 4.6 4.6 4.6 4.7 4.8 15.5 15.3 15.2 15.3 15.4 15.5 7 . 5 1 5 . 6 7 . 4 1 5 . 6 7 . 6 1 5 . 6 7 . 5 1 5 . 6 4 . 9 1 5 . 6 5.0 15.8 8.0 5.0 5.0 4.8 4.9 4.9 5.0 5.1 15.9 8.1 1 6 . 0 1 6 . 1 1 6 . 5 1 6 . 8 17.2 17.4 7.2 7.1 7.1 7.2 7.2 7 . 7 8.3 8.2 8.4 8.6 8.8 9.1 9.4 l / Total c r e d i t increased over $400 million in January as a r e s u l t of bank s t r u c t u r e changes, 2 / Total c r e d i t increased about $200 m i l l i o n as a r e s u l t of bank s t r u c t u r e changes. Note: Data exclude interbank l o a n s . Total loans are a f t e r and types of loans before deductions f o r valuation r e s e r v e s . Consumer and "other loans" a r e p a r t l y estimated f o r a l l d a t e s . Other data a r e p a r t l y estimated on a l l but June and December c a l l d a t e s . ^ o a n s by type have been revised in accordance with preliminary member bank c a l l data f o r June 10, 1959. Data f o r a l l commercial banks w i l l not be revised t o conform v i t h changes in veekly reporting data u n t i l a l l bank c a l l data are a v a i l a b l e on new b a s i s . Not f o r publication August 19, 1959
@FedFRASER