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^ 3 FEDERAL RESERVE BANK, BANKING AND MONETARY f9 Summary, Total crpdif^R M i9&tfercial banks declined somewhat in January. Season%^g^gWammtgtffire o f f s e t i n P a r f c by a contraseasonal increase in holdings ofrHvMB'. Government securities reflecting bank purchases of new Treasury issues. The seasonally adjusted active money supply declined slightly but U. S. Government deposits increased whereas they usually decline sharply in January. Net borrowed reserves of member banks averaged around 070 million, about the same as in December. Bank credit. Total loans and investments at all commercial banks "declined #600 million in January, but this change includes an increase of more than #00 million resulting from bank structure changes, as noted in detail in Table 1. The total credit reduction in January, after adjustment for structure changes, was still much smaller than in the three past years when credit had declined $2-3 billion. Credit growth in December 1958 had also been less than in the 1955-1957 period, but over the second half of 1958 it had been larger. The smaller-than-usual credit decline in January reflected seasonal loan repayments offset in part by a contraseasonal increase in holdings of U. S. Government securities resulting from Treasury financing. During the first two weeks of January, prior to the Treasury financing, credit at weekly reporting banks declined 1)1.9 billion. This was only slightly less than the record reduction in the comparable 1958 period which had followed the largest December rise in the postwar period. Total loans at commercial banks declined $1.5 billion in January ($la7 to $1,8 billion after adjustment for structure changes) compared with $2*7 billion in 1958 and $2 billion in 1957. The reduction reflected largely seasonal repayments in the business and security categories. Loan growth in December 1958 had been the largest on record, considerably exceeding that of 1957 and 1956. Holdings of U. S. Government securities increased Si billion in January (about $900 million after adjustment for structure changes) whereas usually these holdings decline. Commercial banks subscribed to #2.2 billion of the $2.7 billion 16-month Treasury note issued on January 21 and to $165 million of the $885 it per cent Treasury bonds of 1980 issued on January 23. During the first two weeks of January, however, holdings of U. S. Government securities at weekly reporting banks had declined 1600 million, somewhat more than in other recent yearsj at other banks they were about unchanged. During the second half of January, they rose 01.5 billion at all Not for publication Table 1 % -2Estimated Changes in Loans and Investments at All Commercial Banks (In billions of dollars) Item Total loans (excluding interbank) Business Real estate Security Agricultural Consumer All other December 31 to last Wednesday of January 1956 1959 1958 1957 1955 2/ 195k - 1.5 - 2,7 - 2.0 - 1.1 - 0.6 - l.k - 1.2 + O.lt - 1.7 - 1.1 + - 0,5 - 0.3 + 0.2 — 0,5 - 0,6 0.1 O.lt 0.1 H,i - 0^2 -S\6 + 0,1 - 0,2 - 0,1 - 0.2 U. S, Government securities + 1.0 - 0.5 - 0.9 - 0.7 ll + 0.8 Other securities - 0.1 1/ - 0.1 - 0.2 + o.U V - 0.6 - 3.1 - 2.9 "* 2.0 - 0,2 - 0.7 Total loans and investments (less interbank) Item Total loans (excluding interbank) Business Real estate Security Agricultural Consumer All other - O.lt + 0.1 y.i -¥.7 + 0.1 - 0.1 - 0,1 December 31 to last Wednesday of January 1953 1952 1951 1950 1919 19it8 — 0,6 - 0,9 + 0,1 - 0,3 — 0,1 + 0.1 - O.Lt - 0.3 - %5 n.a. n.a. n.a, n.a, n.a, n,a. n.a, n a. n.a. n.a. n.a. n.a. n.a. n.a. n.a, n.a. n.a. n.a. n.a. n.a. n.a, n.a, n.a. + 0.1 - 0.5 • & + 0,1 i, n,a. U. S. Government securities - 0,5 + 0,5 - 2,0 + 1,0 + 0,Zt + 0,2 Other securities + o.i 1/ 1/ + 0.1 - 0.1 i/ - 1,2 - 0.5 - 1,9 + 0,8 + 0.2 + 0.2 Total loans and investments (less interbank) n.a. Not available. 1/ Less than S50 million. 2/ Total credit increased about &I4I1O million in January 1959 as a result of (1) inclusion of all banks in Alaska and (2) of absorption of a mutual savings bank by a commercial bank; loans were increased about $250 million, a substantial part of which was in real estate loans; U.S. Government securities were increased $130 million; and other securities $50 million. Note: Data for January 28, 1959 are preliminary estimates based on data reported by a sample of member banks. Revised estimates will be available at end of Feb, http://fraser.stlouisfed.org/ Not for publication Federal Reserve Bank of St. Louis Table 1 (continued) - 3 Estimated Changes in Loans and. Investments at All Commercial Banks (In billions bf^dollars) Item Total loans (excluding interbank) Business Real estate Security Agricultural Consumer All other Last Wednesday of November to December 31 1958 1957 1956 1955 1951* 1953 + 2.7 + 1.7 + 1.5 + 1,8 + 1.5 + 0.7 + + + + + 0.9 + 0.9 + + + + + + + + + + + 1.0 0,3 0.7 0.1 + 0.2 + 0.3 + + + + 0,1 0.6 0.1 0.1 1/ + + + + 1/ 0.3 0.1 0.2 0.1 0.9 0.1 0.5 0.2 0.2 v — 0,6 0.3 0.2 ' 1/ + 0.6 0.7 + 0.5 0.1 + 0.1 0.1 0.1 y U. S, Government securities - 1.1 + 1.3 + o.h + 0.2 - 1.1 ~ Other securities + 0.1 + 0.5 V + 0.1 + 0.1 + 0.1 + 1.7 + 3'h + 1.8 + 2.1 + 0.6 + 0,6 Total loans and investments (less interbank) Item Total loans (excluding interbank) Business Real estate Security Agricultural Consumer All other 0.3 Last Wednesday of November to December 31 1 1952 1951 1950 1919 1 19I48 1 191*7 + 1.0 + 1.0 + 1.1 + 0.1* + 0.3 + o.h + 0,6 + 0.1 + 0.8 + 0,1 + 0.1 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. n,a. n,a. n.a, + 0.1 + 0,5 n.a. n,a. - 0.2 + 0.3 + 0.1 + O.h 1/ + 0.1 - 0.1 U. S. Government securities — 0.8 - 0.1 + 0.3 + 0.1 — 0,2 — 0,8 Other securities - 0.1 + 0.3 + 0.3 + 0.2 + 0,1 + 0,1 + 0.2 + 1.3 + 1.6 + 0.6 + 0,2 - 0,2 Total loans and investments (less interbank) 1/ Less than $50 million. Not for publication + O.ii V n,a. $ L.U.3 - k - Table 1 (continued) # Estimated Changes in Loans and Investments at All Commercial Banks ~ (In billions of dollars) End of June to end of December Item 1958 Total loans (excluding interbank) • + Business Real estate SecurityAgricultural Consumer All other U. S. Government securities W . Other securities Total loans and investments (less interbank) 1956 1957 + 1.2 1955 195k 1953 + 3»lt + 7.3 + 3.2 + 2.6 li»U 1.0 + 0.7 - 0.2 + 1.2 + 0.5 + i*k 1.6 +¥.$ + + + 0.7 • + — 2.6 1*0 + 0.3 — 0.2 + 0.6 + 0.7 + 0.8 + o.lt + 0.1 — 0.1 + 0.1 + 0.1 * + 0.3 + 0.8 + O.li + O.lt + 1 . 1 + 0.1 + 0.1 + 0.2 + 0.2 + O.It + + + 1.9 - + 5.5 + It. 8 - 0.2 — 0.1 + 0.8 + O.it + 5.1 + + 2.0 2.7 + 0.3 + 1.1 + + 5.7 5.0 1.7 5.5 9.5 + 1.3 7.7 # End of June to end of December Item 1951 1952 • Total loans (excluding interbank) 0 Business Real estate Security Agricultural Consumer All other U. S. Government securities ^Other securities Total loans and investments (less interbank) ^1/ Less than $$0 million. Hot for publication + lt.9 + 2.6 + 0.7 + 0.1 + 0.3 + 2.9 + 2.2 1950 1919 7.5 + 1.9 + 2.7 + ij.lt + lt.0 5.0 + 0.6 + 0.9 + 3.3 + + 0.5 + 0.6 + 1.1 + l.It — 0.3 + 0.2 1/ + 0.8 — 0.8 + 5.8 + 0.7 + 0.3 + 0.6 + 0.7 + 0.6 + 0.3 + 0.1 + 0.1 + 0.1 - + - 2.2 - 1.3 - 1/ + 0.5 + 0.2 0.5 + 3.5 - + + + o.L + - + 0.1 0.1 + 0.3 l.i 1/ + 1.1 + 0.3 + ¥.1 + 2.1 + + 0.1 + 0.6 + 1.2 + 0.7 7.2 + + U.9 + 6.1; 3.0 6.6 3.7 3.8 1918 + 19U7 19it6 — + 0.1 3.8 2.0 1/ 9.7 5.5 L.U.3 - ^ "* Table 1 (continued) Estimated Changes in Loans and Investments at All Commercial Banks IIn billions of dollars) 1958 Tear ending December 31 1957 1956 1955 1951t 1953 Total loans (excluding interbank) + lt.1 + 3.5 ' Business Real estate SecurityAgricultural Consumer M l other + + + + + U. S. Government securities + 8.0 - 0.3 — 3.0 - 7»h + 5.6 + 0.1 Other securities + 2.5 + 1.7 - O.li + O.lt + 1.6 + o.5 +llt.6 + lt.9 + i*.2 + lt.6 +10.2 + lt.1 Item Total loans and investments (less interbank) Item 1?52 Total loans (excluding m,A interbank) Business Real estate Security Agricultural Consumer All other 0.2 + 1.8 2.2 + 0.6 0.1& •- 0.1 0.9 - 0.1 0.1 + 1.1 0.9 + 0.3 1951 + 7.6 +11.6 + 2.9 + 3.L + + — — + + + + + + + + + + + + + + + 5.5 1.7 0.8 0.3 1.3 o.5 6.1t 2.1 0.6 0.7 2.3 0.9 0.3 1.7 0.9 0.2 + ¥.6 Year ending December 31 1950 1949 mi + 6 ell + 5.1t + 9.3 + + + + + + + 0.5 + ii.it + 6.9 0.7 1.0 O.li 1.0 1.5 0.2 19hb + lt.9 2.0 1.1 o.6 0.5 1.9 0.3 + 0.1 + 0.3 + + + + + U. S. Government securities + 1.8 — 0*5 — 5.0 + lt.lt • 6.6 — 5.6 -15.8 Other securities + 0.8 + 0.9 + 2.2 + 1.0 + 0.2 + 0.9 + 0.8 + 9.0 + 5.9 + 6.5 + 5.9 - 2.0 + 2.3 -10.1 Total loans and investments (less interbank) ' 1/ Less than $50 million. Not for publication + li.O + 1.0 - 0.3 + 0.5 h.9 - 1.9 2.0 + 0.7 0.2 + 0.3 0.1 i + 0.2 1.6 + 1.0 0.9 + 0.3 + + + + + + 0.8 + lt.O + lt.6 l.lt + 2.2 + 2.5 0.3 — 1.0 1.2 ! + 0.3 : g 1.0 + 1.3 0.3 + 0.3 + O.lt L- t-L 3 commercial banks, reflecting some reductions in holdings prior and following purchases of new securities. Business loans at commercial banks declined ^1.2 billion in January, almost offsetting the §1«1| billion increase in the last half of 1958, which had been somewhat less than seasonal. Growth during the last quarter of 1958, however, had appeared to be about seasonal. In January 1958, business loans had shown a record decline of Si.7 billion after showing no change in the last half of 1957. Loan repayments by sales finance companies totaled $260 million at city banks in January, accounting for about one-quarter of the total business loan decline, as shown in Table 2. This was a somewhat larger volume of repayments than in January 1958 but borrowing in December 1958, although accounting for over half the rise in total business loans, had been less than a year earlier. Seasonal repayments by food processors, commodity dealers, and trade concerns totaled $300 million in January, somewhat less than in the past two years. Borrowing by this group in the second half of 1958, however, had been less than in the comparable period of most other recent years. Loans also declined in nearly every other major business group, with loans to public utilities falling more than in any other year. Loans to metals processors increased $60 million. Security loans declined $u00 million in January, compared with $600 million last year. Previous year-end increases and the early-January declines in both years had been comparable. In midJanuary this year, however, loans for purchasing and carrying U* S. Government securities increased somewhat in connection with Treasury financing. Real estate loans rose moderately further in January after allowance for a $150 million increase resulting from bank structure changes. Preliminary call report data indicate that these loans at country banks did not increase quite as rapidly in the last quarter of 1958 as previously estimated. Consumer loans probably showed little further change in January, after increasing $200 million in December, slightly more than estimated* Deposits and currency. Seasonally adjusted demand deposit and currency holdings of "businesses and individuals declined $300 million in January, as shown in Table 3. Demand deposits adjusted declined $1,3 billion, $200 million more than the usual Hot for publication L,U.3 T5>£e 2 Changes in Commercial and Industrial loans 1/ — (In millions of dollars) Last Wednesday in December to last Wednesday in January 1959 t 1950 I 1927 I 1^6 | 1922 195U I 1953 I 1952 Business of Borrower Food processors Commodity dealers Trade concerns Total #1 - hhh 2$h -113 68 - 38 - 68 233 "555 =219 186 -221 - 60 9k - 227 10 207 Sales finance - 261* - 571 All other - total + 280 61 301* "" Metals and products - 91 +110 "T3 TTB Textiles, apparel and leather 25 12 + 23 + 6 Petroleum, coal, etc. - 71 18 + 1*8 22 + Other manufacturing and mining Hi •» 28 21 + 10 Public utilities - 109 - 81 + 100 + 6^ Construction - 23 - 2l* 38 - u All other types of business - 112 - 130 - 108 - 81 Classified Unclassified Total change -119 -116 -108 -=31? =ES - 32 - 89 - 5l75 =355 + 2 -153 °-lo6 -320 — 82 - 60 + 7 + 28 - 10 + - 97 - 37 + H* - 31 - 16 h - 11 9 - 80 93 +392 -31*3 =15? -lol* -118 + 6 - 2 - 10 + 2S> - k - 39 + 39 + 1* - 23 - 30 - 1*6 - - 81*8 -1,319 - 8 3 3 -331 -371 -737 - 271 - 281 - 199 -139 2/- 5>8 -11*2 -219 -293 -1,119 —1,600 -1,032 -1*70 2/-L29 -878 -379 - 1*3 -160 1*9 +• 21 -272 1/ Prior to week ending January 11, 1956, included changes in agricultural loans 2/ Includes CCC certificates of interest which are estimated to have declined $85 million. Note: Classified data are for a sample of about 210 banks reporting changes in their larger loans, these banks hold over 92 per cent of total commercial and industrial loans of all weekly reporting banks and about 72 per cent of those of all commercial banks. Not for publication L.lt.3- 8 ~ Table 2 (continued) Changes in Cbmmercial and Industrial loans 1/ (In millions of dollars) ™ ^ast Wednesday in June to last .Wednesday in December 1958 1957 1956 1955 1951 1953 1952 Food processors Commodity dealers Trade concerns Total + 522 + 100 + 86 +331 +1*20 — 8 + 822 + 739 + 178 +1,739 + JU80 + I4.69 + 327 +1,576 1*98 + 539 + 120 +1,157 +501 +380 + 1 +885 +1,557 Siales finance + 29k -108 + 98 + 70li + 32 —138 + 51*1* All other - total rlf Metals and products k$k Textiles, apparel and leather 232 Petroleum, coal, etc* Hi Other manufacturing and mining 121 + 23U Public utilities + 50 Construction All other types of + 362 business -h7h -=m + 883 — 7l + 221* 559 5W -311 -351 + 391 -159 +150 + 1*28 + 208 26 88 -101 +102 - I4.0 -161 +183 - h9 + 72 + 350 + 62 225 82 - 51* + 18 - 23 + 36 66 + 27 + 106 + 57 13 + 58 + 176 + 370 + 132 + 98 + 191 +i,138 197 +161 -157 +2,719 +3,050 + 630 +1*33 — 260 2/+ 156 3/- 91 l/+15b +2,1*91* - 59 + 9hl -296 ' +2,159 2/+3,206 3/+ 539 1/+583 +2,2*35 •KLjOlo ** Classified Unclassified Total change 6 +1,069 + 71 63 + + 751* + 662 + 11*1 + I + 250 1/ Prior to week ending January 11, 1956, included changes in agricultural loans. .2/ Includes CCC certificates of interest which are estimated to have declined $300 million. In October 195#, the level of business loans was increased by $318 million 0 to correct classification errors. No back figures were revised and changes for the July-December period include the revisions. ,3/ Includes CCC certificates of interest which are estimated to have increased $65 million. @ kl Includes CCC certificates of interest which are estimated to have increased $lil0 million. Note* Classified data are for a sample of about 210 banks reporting changes in their larger loans; these banks hold about 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 seasonal amount, and currency outside banks declined $900 million, $100 million more than the expected seasonal drop. In December, the active money supply had declined #200 million, reflecting a smaller-than-usual rise in currency outside banks« Currency had increased more than seasonally during the late fall, however. Over 1958, growth in the money supply had been 3-1/2 per cent, reflecting an annual rate of 5-1/2 per cent in the first seven months of the year with a subsequent drop to about 1-l/U per cent in the latter part of the year. Do S. Government deposits at commercial and Federal Reserve Banks increased $300 million in January reflecting Treasury financing operations in the latter part of the month,, Generally in January, these deposits have declined $1-2 billion. The level of time deposits at commercial banks increased SiiOO million during January, reflecting only bank structure changes. Last year in January, time deposits had increased $500 million. Over the year 1958, but mainly in the first seven months, time deposits increased £>6.8 billion, exceeding growth in any other year. The level of deposits at mutual savings banks declined $100 million in January, reflecting a reduction of $300 million due to bank structure changes offset in part by continued growth of $200 million. Expansion was at about the same rate as in late 1958 when growth at these banks had not slackened as at commercial banks. Bank reserves. Net borrowed reserves of member banks averaged C?0 million in January, a little higher than the $kO million December level, as shown in Table it. In December, banks had moved from a position of low free reserves to low net borrowed reserves. Reserve positions tightened slightly at city banks in January but were about unchanged at country banks. Member bank borrowings from the Federal Reserve averaged 0555 million in January, the same as in December, but excess reserves declined to 4U90 million from $520 million. On a weekly average basis during January, reserve positions ranged from net borrowed reserves of £>110 million to free reserves of $85 million. In the first half of January, net borrowed reserves remained close to the late December level of about $125 million as funds supplied through currency inflow reduction in required reserves, and a decline in Treasury deposits at the Reserve Banks were absorbed through System sales of U. S. Government securities and a decline in float. In the week of January 21, positions shifted to a free reserves level of #85 million. Further declines in currency and Mot for publication ~ • V 3- — 10 ~ Table 3 Estimate# .Changes in Deposits and Currency (in billions of dollars) Item Seasonally adjusted data!/ hJ Demand deposits adjusted Currency outside banks Total Seasonally unadjusted dataiA/ Demand deposits adjusted Currency outside banks Total Time deposits Commercial banks Mutual savings banks U. S. Government deposits Total 195$ 1956 1958 1957 1957 ... 3.959 Jan. 1 Jan. 1 June 24 June 27 Jan. .1 Jan, 1 Jan. 28 Jan. 29 Dec. 31 Dec. 31 Dec. 31 Dec. 31 — — + + mm + - 0.2 0.1 0.3 — 0.4 — 0.6 - 1.0 + 2.9 2/ + 2.9 - 2.2 + 0,2 - 2.0 + 5.2 — 0,1 + 5-1 — 1.6 + 0.4 - 1.2 1*3 0,? 2.2 0.3 0.4 0,1 0c3 1.3 - 2.7 - 1.0 - 3.7 + 0.7 + 0.5 + 0.2 zj.4 - 4.6 + + + + + + + + + + + + + + 4-2 + 0,3 + 4.5 + 8.8 + 6.8 + 2.2 + 0.2 +13.6 - 1.1 2/ - 1.2 + 6.9 + 5.6 + 1.7 + 0.2 + 5.9 Factors affecting deposits (signs and currency Bank loans and investments other than U. S, Govt, sec..2/ - 1.-S Commercial 1.4 2/ Mutual savings Bank holdings of U. S. + 0.2 Government securities: Federal Re s ewe 0.8 + 1.0 Commercial Mutual saving and other 0.1 Gold stock and foreign deposits at F. R. Banks 0.1 Other factors 0.1 — - — — - 8.3 0„8 9.1 2,4 1.4 1.1 + 6.4 4.7 0.5 5«2 2.7 2,1 0.8 0.5 7.4 indicate effect on deposits and currency) - 2,5 - 2.7 + 0.4 + 5,0 + 3.5 + 1.2 + 3,7 + 2.3 + 1,1 + 9,5 + 6.4 + 2.8 + 7.5 + 5.1 + 2.2 - + + + - + + + — _+ + + - — - 1.5 0.9 0.5 0.1 + 0.1 - 0.7 3.3 1.2 2.0 0.2 - 0.8 - 1.1 3.6 1.3 2,7 0,6 + 0.2 — 0.1 9,5 1.2 9.0 0.5 - 2.2 — 3.2 1.8 0.7 0.3 0.8 + 0.8 — 0.6 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. Seasonally adjusted data for January 1958 reflect change from December 25, 1957. 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. 4/ 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 January 28, 1959, are preliminary estimates based on data reported by a sample of member banks. Revised estimates will be available at the end of February. Not for publication L.l*.3 — 11 — Table 1*. Free Reserves (excess reserves minus member bank borrowings} based on average of daily figures; in millions of dollars) ill member Quarterly averages 1957: First Second Third Fourth - 108 - 1*85 - l*l*o - 265 1958: First Second Third Fourth New York - 88 - 196 - 21*1 - 109 Chicago -115 -11*1 - 56 - 105 221 373 316 1*28 320 - - 16 3U 30 9 18 - 35 - 17 27 63 55 191 - - 25 11*1* 7 7 12 1*1* 89 57 56 5o8 5U6 383 95 111 20 - i*i 1959: January 122 321 1*93 193 517 - - 1*81* - 28 1*6 21* 1*2 3 51 7 16 k 1 - - 6 18 k 22 - 79 17 - 1*3 - — 67 1958: December 31 1959: January 7 January lU January 21 January 28 February I* - 153 83 1 62 22 221* 286 276 365 1*22 1*21* 273 337 353 1*06 1*59 399 1*08 1*71 1*26 - 31 201 187 189 198 268 268 «• 61* - 53 223 273 -133 - 51 - 55 211* 190 - - U*0 - 258 285 171 205 173 81* - 110 - 62 - 80 - 101 - 52 26 * 3 3 16 91* «• 80 - 1*8 — 6 1* Note: Data for January and February are preliminary* Country City 313 1958: January February March iSDpril May June July August September October November December Not for publication Reserve 378 281* 1*08 313 339 153 89 - 12 - required reservee along with the mid-month rise in float supplied more reserves than System sales of securities absorbed* In the following week, however, when required reserves increased sharply in connection with Treasury financing, net borrowed reserves averaged $110 million. Over the month of January, as shown in Table 5, reserves were supplied to banks principally through the post-Christmas reduction of $850 million in currency in circulation and were absorbed by a reduction of $ 5 3 5 million in System holdings of U. S. Government and of $ 3 2 5 million in Reserve Bank float. Moderate gold outflow continued and in addition, foreign deposits at the Reserve Banks rose somewhat. Treasury deposits at the Reserve Banks declined, however, and other miscellaneous factors supplied a small volume of reserves. Required reserves increased slightly on a monthly average basis. On a weekly basis, they declined *26$ million during the three weeks ending January 21, reflecting seasonal contraction in bank credit and deposits. In the week of January 28, they rose $190 million associated with substantial bank takings of new Treasury securities. Interest rates. In January, the effective rate on Federal funds remained almost constantly at 2-1/2 per cent, dropping below that level only for two days around the midmonth. Money market rates increased slightly further. The rate on ii-6 month prime commercial paper rose from 3-l/U per cent to 3-3/8 per cent and that on 3-6 month finance paper from 3 per cent to a range of 3-3-l/U per cent. In early February, however, rates on both classes of paper dropped back tc their late December levels. Not for publication .LfcU.3 - 13 - Table 5 Changes in Member Bank Reserves, -with Relevant Factors (Monthly average of daily figures; in millions of dollars) Jannary Item July - fiecemberJanuarys-December 1959 1928 1958 1957 1958 1957 6 - 12U + 299 + Ii38 - 521 - 115 + 22 - 120 + lj08 + 358 - &6l - 1*0 + 22 — 28 - 120 - it + 1|08 - 109 + 358 + 80 -l,ltitO + 979 — 60 - ItO - 75 Member bank reserve balances Total Required reserves 1/ Effect of reduction in requirements Effect of deposit change Excess reserves 1/ - Principal factors Currency in circulation Gold stock and foreign accounts Treasury operations Federal Reserve float Other factors Effect of above factors on reserves (signs :Jidicate <sffect on reserves' + 8h9 + 873 -1,331 -1,029 - U38 — 156 + — * + + 61 132 325 32 - 908 + 8 + 580 - 29 + + + + 196 156 273 118 -2,123 + 77 + 53 - 262 + 851* + 161 - 190 it + 511t + 509 -1,680 - 286 -2,693 + 665 - $22 - 632 +1,981 + 723 +2,17lt - 780 +1,563 +1,510 +2,330 it + 993 + m + 295 + 23 - 271 + 100 it - 7 + U5 + 7 - 295 + 2 - 153 + 1 89 h2 326 38 Federal Reserve loans and investments: Total 8* Govt* securities Outright Repurchase agreements Acceptances Discounts and advances: Tb member banks To others - 536 U3 3 - 217 + it - 1 + 12 - 259 - 3 - + 1/ Data for January 1959 are preliminary. Wot for publication + hh + 22 - 12 o3 — «• Deposits and Currency (In billions of dollars) (9) Seasonally Time deposits adjusted U. S. money Demand Gov't, CurTotal Demand rency supply and deposits Total Commer- Mutual Postal deposits deposits outside time dep. adjusted ( 7 + 8 + 9 ) cial savings savings 2/ (2+3) adjusted banks at com'l. baidcs (1+7) Seasonally adjusted money supply 1/ Tear or month End of Dec. (12) Total Cur- deposits and rency outside currency baidcs ( 5 + 6 + 1 0 +11) 19U7 111.1 85.2 25.9 11*6.3 87.1 56.lt 35.2 17.7 3.U 19U8 108.8 83.5 25.3 ILL.6 85.5 35.8 1 8 Jt 3.3 19U9 109.0 8b.3 2b.7 1L5.1 85.8 57.5 58.6 36.1 3.2 lt.1 1950 llb.3 89.8 214.5 150.6 92.3 59.2 36.3 19.3 20.0 2.9 3.7 1951 120.1 9b.5 25.6 158.0 98.2 61.5 20.9 2.7 1952 12b.7 97.8 26.9 165.L 101.5 37.9 65.8 lt0.7 22.6 2.5 1953 126.8 27.3 170.5 102.5 70.lt lt3.7 2lt.lt 2.It lt.8 195b 129.7 99.5 102.8 176.5 106.6 75.3 L6.8 26.3 2.1 1955 133.2 105.8 27.it 181.6 109.9 78.lt lt8.lt 28.1 1956 13U.lt 106.7 27.7 185.0 mat 82.2 50.6 30.0 1.9 1.6 1957 133.2 105.1 28.1 189.3 110.3 89.1 56.1 31.7 1.3 132.2 10b.7 27.5 188.8 107.6 89.8 56.6 31.9 1.3 133.1 105.5 27.6 190.7 105.6 90.9 57.6 32.1 1.3 13U.0 106.b 27.6 192.8 10L.6 92.5 58.8 32.lt 1.3 6.b 27.lt 130.9 135.0 107.2 27.6 19k.9 107.2 93.6 32.5 1.2 6.0 27.6 23lt.lt 135.5 107.6 27.9 196.2 105.8 9 b .6 59.9 60.7 32.7 1.2 6.1 27.8 23U.3 135,b 107.U 28.0 196.9 106.2 95.5 61.5 32.8 1.2 10.0 27.8 239.5 137.6 109.5 28.1 108.1 96.lt 62.3 32.9 1.2 lt.8 27.9 237.2 137.3 109.2 28.1 199.9 200.0 107.5 97.0 62.7 33.1 1.2 6.2 28.0 238.7 26.9 ; 2.3 • 3.6 26.5 172.3 26.1 172.7 25.lt 25.lt 173.9 180.6 3.9 26.3 189.9 5.6 27.5 200.L 28.1 205.7 5.1 27.9 21&.8 lt.lt 28.3 221.0 lt.5 28.3 226.lt lt.7 28.3 232.3 2.9 27.3 227.7 lt.2 27.lt 228.1 1958$ Jan. 2 9 Feb. 2 6 Mar. 2 6 Apr. 3 0 May 2 8 June 23 July 30 Aug. 2 7 Sept.2b Oct. Nov. Dec. 136.7 108.9 27.8 199.lt 108.1 97.2 62.7 33.3 1.2 5.0 137.9 110.0 27.9 200.8 110.8 97.lt 62.9 33.lt 3,.2 lt.2 27.9 28.0 238.1 29p 26p 138.5 110.3 28.2 200.6 111.6 96.7 62.1 33.5 1.1 6.3 28.8 2L3.3 31p 138.3 H 0 . 3 28.0 201.2 lHt.5 97.9 62.9 33.9 1.1 It. 9 28.6 2L5.9 138.0 110,1 2 7* 9 201.3 113.2 98.2 63.3 33.8 1.1 5.2 27.7 2l0t.lt 2lt0.lt 1959: Jan. 28p 3/ ~y Seasonally adjusted series begins in 19b7 and is available only for last Wednesday of the month. 2/ At commercial, savings, and Federal Reserve Banks. 3y' 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 a merger of a reserve city batik in the Fourth District with a mutual savings bank, time deposits at commercial banks increased $300 ^ . http://fraser.stlouisfed.org/million and those at mutual savings banks declined $300 million. "NotBank fo#publicatio# # # # # # # # Federal Reserve of St. Louis Loans and Investments at All Commercial Banks (In billions of dollars) Bate 19577 1918: 1919: 1956: g95l: 5.952: 1953: 195k: 1955: 1956: Dec. 31 Bee. 31 Bec. 31 Bee. 31 Dec. 31 Bee. 31 Bee. 31 Bee. 31 Bee. 31 Dec* 31 Jan. 30 Feb. 27 Mar. 27 Apr. 2lt May 29 June 26 July 31 Aug. 28 Sept. 25 Oct. 30 Nov. 27 Dec. 31 Jan. 29 Feb. 26 Mar. 26 Apr. 30 May 28 June 23 July 30 Aug. 27 Sbpt. 2lt Oct. 29p Nov. 26p Dec. 31p Loans UTS. Govt, Other Total and Real Secuinvest- secur- secur- loans Business estate rity Farm ments ities ities 116.2 9.0 I0Z2 37.9 9Ji 2.1 1.7 lllu2 62.6 9.2 l2.lt 18.9 10.8 2.3 2.9 120.1 67.0 10.2 it2.9 17.1 11.5 2.6 3.1 126.6 62.0 12.lt 52.2 21.9 13.5 2.9 2.9 132.5 61.5 13.3 57.6 llt.6 2.6 3.1* 25*9 lltl.5 63.3 lit.l 61t.O 27.9 •15.7 3.2 3.9 Ht5.5 63.lt lit. 7 67.lt 27.2 16.7 3.6 69.0 16.3 155.7 70.lt 26.9 I8.lt £.5 1$ 160.3 61.6 16.7 82.0 33.2 20.8 5.0 it.5 58.6 16.3 89 16U.5 38.7 22.5 It. 3 lt.2 161.6 161.1 161.a 163.8 163.8 161.3 I61t.l I61t.6 165.1 166.5 165.9 169.3 166.2 167.1 169.9 17lt.O 173.8 178.2 176.2 178.3 177.9 179.8 182.2 183.9 57.7 56.8 55.7 57.5 57.1 55.5 56.3 56.2 55,9 57.3 56.9 58.2 57.7 58.3 59.6 62.8 63.1 6it.2 61t.l 66.1 61t.7 66.0 67.3 66.2 16.2 16.3 16.5 16.7 16.8 16.8 16.8 16.9 17.1 17.6 17.lt 17.9 17.9 18.2 18.9 19.3 19.lt 20,1 19.9 20.2 20.6 20.5 20.3 20.lt 87.7 87.9 89.1 89.7 8 9.9 92.0 91.0 91.5 92.2 91.6 91.5 93.2 90.5 90.6 91.5 91.9 91.3 93.9 92.2 92.1 92.6 93.3 9&.6 97.3 37.6 37.8 39.0 39.0 38.9 22.5 22.5 22.5 22.5 22.5 39.6 39.9 lt0.3 39.7 39.6 22.7 Uo.5 ltO.5 38.8 3806 39.2 38.lt 38.1 38.9 37.9 38.3 38.7 38.9 39.3 lt0.3 22.6 22.8 22.9 22.9 23.0 23.1 23.1 23.2 23.2 23 23 23 23 2lt 2lt.3 2lt.7 25.0 25.3 ConAll sumer other 3e8 lt.8 2.9 3.1 5.8 3.1t 7, It lt.2 7.5 It. 5 9.1t lt.9 10.9 5.1 10.9 5.6 13.2 6.5 llt.6 7.0 3.7 3.7 3.6 3.8 3.8 3.9 3.7 3.8 3.8 3.7 3.6 lt.2 lt.2 lt.2 It.l lt.l lt.0 3.9 3.8 3.8 lt«0 lt.0 lt.l lit. 5 lit.5 llt.6 Ht.9 15.1 15.3 15.lt 15.5 15.6 15.7 15.6 15.7 6.8 6.8 6.8 3.6 3.9 lt.2 5.1 lt.lt 5.6 It.5 3.6 lt.2 lt.lt ItJt lt.lt lt.lt lt.6 lt.6 15.5 15.3 15.2 15.3 15.it 15.5 15.6 15.6 15.6 15.6 15.6 15.8 7.2 7.1 7.1 7.2 7.2 7.5 7.1t 7.6 7.5 7.7 lt.2 lt.61 lt.7 1:1 lt.8 3.9 li.9 lt.6 5.0 6.9 7.0 7.2 7.2 7.2 7.3 7.2 7.3 7.3 8.0 8.3 Jan. 28i 183.3 67.2 20.3 95.8 39.1 25.7 It. 2 5.1 15.8 8.1 ,a. l credit uicreased over #Zt0O million in January as a of—tlT inclusion of all ^ V -' • — — » — result -. rHanks in Alaska and (2) a merger of a reserve city bank in the Fourth District with a mutual savings bank. Botes Data exclude interbank loans. Data for January 2&, 1959, are preliminary estimates based on data reported by a sample of member banks. Loan data, by type, have been revised on basis of preliminary member bank call data for Dec. 31, 1958. Not for publication February 19, 1959. Banking Section, Board of Governors,
@FedFRASER