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Tjgssr .4.3 may 2 0 1959 RESEARCH LIBRARY BANKING AND MONETARY DEVELOPMENTS IN APRIL 1959 Summary. Total credit at commercial banks increased in April reflecting principally substantial loan growth. Holdings of U. S. Government and other securities also rose. The seasonally adjusted active money supply increased further. Time deposits rose moderately and U. S. Government deposits increased whereas they usually decline in April. Member bank reserve positions continued to tighten. Private short-term money market rates rose further. Bank credit. Total loans and investments at all commercial banks increased $2.6 billion in April. Total loans rose Si.8 billion, reflecting growth in all major categories. Holdings of U. S. Government securities increased SltOO million. On April 1, commercial banks subscribed to approximately $3.6 billion of the total $li..It billion Treasury cash offerings, but they subsequently reduced their holdings of U. S. Government securities substantially. The net rise for the month was entirely at country banks? holdings at city banks declined slightly. Holdings of other securities rose $300 millionj about half of this was in New York City reflecting in part bank purchases of a special offering of New York State tax anticipation bills. Total credit growth in April was about half as large as in April last year, which included a cash financing at the midmonth. It was about comparable with growth in 1957 and 1955, both of which included Treasury cash offerings. In most earlier years credit had declined. Exclusive of the substantial expansion in security loans (and after adjustment for structure changes) adjusted loan growth of $1.2 billion in April was larger than in any other recent year, over twice the average growth in the 19551957 period. The $1|00 million increase in holdings of U. S. Government securities was much less than in other years which included financing. So far this year, credit at all commercial banks (after adjustment for structure changes) has declined about $1*3 billion,— comparable with reductions in 1955 and 1956 and about the same as the average decline over the entire 191*8-1957 period. In 1958, credit had risen contraseasonally. Holdings of U. S, Government 1/ Final data indicate commercial bank? subscribed to $1,331 million of the $1,71*5 million of 4 per cent Treasury notes maturing May 15, 1963, and to $335 million of the $620 million of h per cent Treasury bonds maturing October 1, 1969. Commercial bank subscriptions to the $2 billion 289-day special Treasury bills are not available but commercial banks probably took most of the issue. Not for publication - 2 - LA.3 Table 1 Estimated Changes in Loans and Investments at All Commercial Banks (In billions of dollars) Item Last Wednesday in March to last Wednesday in April 19592/ 1958 1957 1956 1955^ 195^/ + 1.8 + 0.4 + 0.6 + 0.6 + 0.6 - 0.5 + + + + + + 0.2 0.4 0.5 0.1 0.3 0.3 - 0.8 + 0.1 + 0.9 1/ + 0.1 + 0.1 + + + + + + + + + + + + - 0.5 + 0.1 1/ U. S. Government securities + 0.4 + 3.2 + 1.8 Other securities + 0.3 + 0.4 + 0.2 + 2.6 + 4.1 + 2.4 Total loans (excluding interbank) Business Real estate Security Agricultural Consumer All other Total loans and investments (less interbank) ixem 1/ 0.2 0.1 0.3 0.1 0.2 0.2 0.2 0.5 0.3 0.1 + 0.1 - 0.4 + 1.4 + 1.4 1/ 1/ + 0.1 0.3 0.2 0.1 0.1 0.3 1/ + 0.2 + 2.0 'If + 1.1 Last Wednesday in March to last Wednesday in April 1953 1952 1951 1950^ 1949^/ 1948^/ + 0.3 + 0.4 1/ 1/ - 1.1 1/ - 0.1 + 0.1 1/ - 0.1 + 0.3 + 0.2 + + + + + 0.6 0.1 0.6 0.1 0.1 0.1 - 0.1 + 0.1 - 0.2 + 0.1 1/ + 0.1 - 0.3 + 0.2 + 0.2 - 0.1 4- 0.1 - 0.1 n.a. rua. n#8 * Xi • + 0.1 H *a n#€i • n,a. n»a. n,a. + 0.1 n.a. U. S. Government securities - 1.6 - 0.6 - 0.3 - 0.3 + 1.1 + 0.8 Other securities + 0.1 + 0.1 1/ + 0.2 - 0.1 - 0.1 - 1.3 - 0.2 - 0.3 - 0.1 - 0.1 + 0.7 Total loans (excluding interbank) Business Eeal estate Security Agricultural Consumer All other Total loans and investments (less interbank) 0 l/ Less than $$0 million. 2/ Data for April are affected by the date of the last Wednesday of March relative to the April 1 personal property tax date in Cook County, Illinois. 3/ Total credit increased about $200 million as a result of inclusion of a national bank in Hawaii. Loans were increased about *>120 million; Government securities about $60 million; and other securities about $20 million. Digitized Note: for FRASERData for April 29, 1959; are preliminary estimates based on data reported by a http://fraser.stlouisfed.org/ sample of member banks. Eevised data will be available at the end of May. Federal Reserve Bank of St. Louis - 3 Table 1 (Continued) L.lt.3 Estimated Changes in Loans and Investments at All Commercial Banks (In billions of dollars) Item December 33 to last Wednesday of April 19592/ 1958 1957 1956 1955 1951 +1.7 -1.3 +0.1 *1.9 +1.U -1.1 1/ +1.0 -0.3 -0.1 +0.6 +0.4 —2.1 +0.2 40.9 +0.3 -o.U -0.1 +0.3 1/ -0.5 -0.1 +o.U -0.1 +1.6 +0.6 -0.6 -0.2 +0.5 +Q.1 +0.7 +0.8 -0.2 -0.8 +0.6 40.2 -1.0 +0.2 -0.6 +0.5 -0.3 U. ST. Government securities -2.8 +L.6 -1.1 -3.U -3.it -1.3 Other securities +0.3 +l.lt +o.U -0.1 40.7 +0.5 -0.7 +L.7 #0.7 -1.6 -1.2 -1.9 Total loans (excluding interbank) Business Real estate Security Agricultural Consumer All other Total loans and investments (less interbank) Item Total loans (excluding interbankl" Business Real estate Security Agricultural Consumer All other 2 E December 31 to last Wednesday of April "1950" 1951 19II9 3HZ +0.7 +0.2 +1.7 +0.6 -l.lt —0.1 -0.7 40.2 +0.3 40.1 +0.2 +•1.7 +o.U +0.6 -d.3 n.a. n.a. y +5(2 +0.3 -0.5 -0.1 +0.9 +0.2 •0.6 +0.1 +<5.3 -0.2 +0.3 -0.1 n.a. 40.1 n.a. -0.6 U. S. Government securities -U.lt -1.0 -3.5 -1.5 Other securities +0.3 40.lt +0.2 +0.8 -3.6 —0.6 -1.7 Total loans and investments (less interbank) 1/ ' y -2.0 ~y Less than $50 million. 2J Structure changes' increased total credit about $6^0 million; loans, about $370 million; Government securities, about $200 million; and other securities about $70 million. Hot for publication L.4.3 <r Table 1 (continued) Changes in Loans and Investments at City and Country Banks (In millions of dollars) Last Wednesday in March to last Wednesday in April if 2/ Item 1959 2/ 1958 1957 1956 1955 1954 Weekly reporting banks ® Total loans U. S. Government securities Other securities Total loans and investments 921 89 + 203 +1,035 11 +2,440 + 241 +2,670 + 241 + 808 + 63 +1,112 - 255 486 60 291 + 370 +1,098 70 +1,398 - 635 +1,310 + 129 + 804 Demand deposits adjusted +1,176 +1,192 +1,223 +1,175 +1,379 +2,296 Total loans U. S. Government securities Other securities Total loans and investments + 753 + 4l8 + 76 +1,247 + 290 + 648 + 101 +1,039 + + + + 26l 543 65 869 + + + 246 50 42 238 + + + + 200 199 4l 440 + + + + 53 86 25 164 Demand deposits adjusted + +1,029 + 511 + 380 + 511 - 180 + + - Country member banks w ^ 902 Last Wednesday in March to last Wednesday in Apr jH Item 1953 1952 1951 1950 1/2/ 1949 1948 Weekly reporting banks $ Total loans U. S. Government securities Other securities Total loans and investments Demand deposits adjusted + 14 -1,401 + 45 -1,342 + + - 33 503 33 437 - 229 81 25 335 + + 30 196 117 49 -1,024 +1,201 33 + 144 - 292 +1,042 30 + 720 + 901 + 4ll + 627 + 987 +1,266 +1,331 + + - 203 238 5 30 + + + 210 127 47 130 + + - 112 174 19 43 + + + 82 65 39 56 - 24 92 7 123 + l4l 84 7 50 - 97 - 48 - 126 + 136 + 26 - 17 Country member banks Total loans U. S. Government securities Other securities * Total loans and investments Demand deposits adjusted —/ —— — v o . + - uud xqdu vicsu.j.iooucij ui i*iax'uii uu urie April x tax date in Cook County, Illinois. Years most affected are 1948, 19^9, 1950, 1954, and 1955. #/ Country bank data are for June and December call dates. 3/ Country bank assets and liabilities were increased about $350 million in April as a result of inclusion of a national bank in Hawaii and the shifting of six national banks in Alaska from nonmember banks. (Loans +200; U.S.Govt.+100; other sec.+gO; dem.dep.adj.+200; time +1$0) Note: Data for country banks include interbank loans, but interbank loans outstanding at these banks have generally been less than $100 million although on March 12, 1959, they were •Lose to $200 million. Data for weekly reporting banks include interbank loans prior to 1952. L.4.3 ' - 5 Table 1 (continued) Changes in Loans and Investments at City and Country Banks (In millions of dollars) # End of December to last Wednesday in April Item I959 2/ 1958 l/ 1957 1956 1955 1954 Weekly reporting banks # 0 Total loans U. S. Government securities Other securities Total loans and investments + 421 -2,6l8 + 289 -1,908 -1,663 t +4,125 +1,034 +3,496 - 705 - 682 + 178 -1,209 +1,238 -2,613 21 -1,396 + 838 -2,919 + 353 -1,728 -1,933 - 640 + 535 -2,038 Demand deposits adjusted -1,241 -1,188 -1,519 -1,975 -1,476 -2,109 + + + + + + + + + + + + - 772 894 54 68 + + + 507 734 235 7 + + - -1,523 - 888 -1,734 Country member banks Total loans U. S. Government securities % Other securities Total loans and investments Demand deposits adjusted * 960 315 27 672 -1,154 256 353 323 932 -1,033 496 391 257 362 -1,525 End of December to last Wednesday in April Item 1953 1952 379 568 27 162 l/ 1951 1950 1949 1948 Weekly reporting banks 0 Total loans U. S. Government securities Other securities Total loans and investments Demand deposits adjusted - 127 -3,718 + 200 -3,645 + - 250 765 273 742 + 879 -2,869 + 64 -1,926 + 22 -1,547 + 618 - 907 -1,549 36 + 149 -1,436 - 168 -1,752 + 45 -1,875 -1*197 -1,072 -1,428 -l,104 -1,619 -2,014 + + - + + + + + - 729 835 81 25 + + + + 487 78 134 699 + - + + -1,036 - 260 -1,236 w Country member banks Total loans U. S. Government securities Other securities S Total loans and investments Demand deposits adjusted 641 690 16 33 -1,530 450 124 74 400 -1,364 72 357 70 354 598 825 134 94 -1,199 A / Country bank data are for June and December call dates. 2/ Country bank assets and liabilities were increased about $350 million in April as a result of inclusion of a national bank in Hawaii and the shifting of six national banks in Alaska from nonmember banks. (Loans +2005 U.S.Govt.+100; other sec.+^O; deal.dep.adj.+200; time +1$0) Note: Data for country banks include interbank loans, but interbank loans outstanding at these banks have generally been less than $100 million although on March 12, 1959, they were 0lose $200 million. Data for weekly reporting banks include interbank loans prior to 1952. Digitized for to FRASER Hot for publication L.4.3 - 6 - securities fell more than usual in the first four months of 1959 compared with other postwar years but loans rose more. Loan growth (adjusted for structure changes) totaled $1.3 billion, about the same as in 1955# somewhat below 1951 and 1956, but well above other recent years. Business loans at commercial banks increased #200 million in April, following a $1 billion increase in March, which included tax borrowing. Last April, business loans declined |800 million. The 1959 growth was about the same as that in 1955 and 1956; in all other recent years, these loans had declined. In April, borrowing by sales finance companies and trade concerns was heavier than usual. Loans to metals processors increased only slightly further, reflecting considerable slackening from the rate of growth earlier in the year. Seasonal repayments by food processors and commodity dealers were smaller than usual. Public utility concerns, however, continued to reduce their borrowing substantially. So far this year, business loans at all commercial banks have been about unchanged as a small decline at weekly reporting city banks has probably been offset by small growth at other banks. Within the city bank group, reductions in New York City exceeded growth in other cities. Last year, business loans at all commercial banks declined #2.1 billion with #650 million in New York. On the average, over the postwar years, business loans have shown little change in this period. During the first four months of the year, borrowing by trade concerns exceeded that of the comparable period of any other year, and borrowing by textile companies was also somewhat larger than usual. Borrowing by metals processors was substantial but less than in several other years. Seasonal repayments by food processors and commodity dealers were smaller than usual. Loans to sales finance companies showed little change whereas they ordinarily decline. On the other hand, loan repayments by public utilities were much larger than in any other year and those by petroleum concerns were somewhat larger. Real estate loans increased substantially further in April. Growth of #135 million at weekly reporting banks was about the same as in 19h7 and 1955 and much more than in any other year. The substantial total loan growth outside the weekly reporting banks in April indicated that real estate loans probably rose in considerable volume at these banks too. So far this year, growth in real estate loans at all commercial banks (after adjustment for structure changes) has been at a Not for publication £.4.3 - 7 Table 2 Changes In Commercial and Industrial Loans l/ (In millions of dollars) Last Wednesday of March to last Wednesday of April Business 01 sorrower 1959 1958 Food processors Commodity dealers Trade concerns Total - 124 - 49 + 118 - 55 - 177 - 23 + 23 - 177 + - 74 83 64 93 Sales finance + 133 - 268 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 - 122 + 37 + - 12 28 Classified Unclassified Total change 1956 1955 1954 1953 1952 + - 55 80 91 kk -130 -109 + 60 -179 -147 - 88 + 7 -228 - 216 - 117 + 65 - 2^8 - 295 - 131 + 20 - 406 + 92 + 4l +198 - 11 + 105 + 3 - 443 - 300 - 26 - 19 + + 52 87 + 80 - ^3 -176 -135 + + 43 19 + 97 4l - 56 60 + 6 + 29 + + 1 57 - 6 + 76 - 29 + 23 + 25 13 - 35 26 + 21 - 202 + 18 + + 32 59 16 + 11 - 39 + 4 + 18 - 118 + 28 + 16 - 8 + 27 - 9 - 75 + 15 + - 66 12 + + 5 70 17 + 20 - 70 - 18 - 21 + 18 + 34 - 18 - 29 + 44 74 - 887 + 32 - 27 - 57 + + 48 +100 -415 50 2/-152 2/-165 - 119 - 85 - 499 - 72 + 30 - 855 - 84 + 98 2/- 52 - 204 - 571 1957 3/-580 — — — 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 $130 million. Zl Includes CCC certificates of interest which are estimated to have declined $50 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. Data are preliminary for week of April 29, 1959- Not for publication L.U.3 - 8 - Table 2 (Continued) Changes in Commercial and Industrial Loans 1/ (In millions of dollars) Business of Borrower 1958 1959 Last Wednesday in December to last Wednesday in April 195U 1956 1955 1957 397 302 61 760 -U52 - Ul8 + 182 - 717 U6U r m - 230 - 1 - 322 +1.689 + 913 +7U7 + 72 - 102 1U8 + 618 + 3lo + 9^9 + 1U2 + 82 + + 139 261 +186 +271 + - 60 52 + 129 + 50 + 18 166 76 131 2 + 123 + 101 - Uo + + 232 186 2 + 59 + 98 + 31 . + 7 19 25 + 25 + 100 + 5 + - 60 79 19 85 - 151 + 3Q 39 - 31 - 67 -1,875 + 253 - 173 +320 - 1 , 0 9 2 +1,167 + 51 2 / -200 t~ 105 - 70 - 187 - 572 5U + +1,218 2 / +122 3^-1,197 - 257 - 626 Food processors Commodity dealers Trade concerns Total - 391 - 225 + 210 - U06 - 577 237 157 971 - 379 - 336 - 60 - 775 + - 2U5 183 187 2U1 Sales finance + - 778 + 228 - 280 All other - total Metals and products Textiles, apparel and leather Petroleum, coal, etc. Other manufacturing and mining Public utilities Construction M l other types of business + 2Tp + 5>30 + 127 1 + 79? + &2 8U 9k Classified Unclassified Total change 9, + iia - 105 + - + 115 * + - Ul2 + + 23 - 77 - 182 +• 9 1952 1953 - - 198 - 173 „ - 2 , 0 7 3 80 Uo • —U09 -369 - +303 + - 10U —1,265 +1.032 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 $300 million. 3/ Includes CCC Certificates of interest which are estimated to have increased $125 million. Notes Classified data are for a sample of about 210 banks reporting changes in their larger loans j 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. Data are preliminary for week of April 29, 1959. Not for publication near-record level. This has also been true of consumer loans which increased #300 million in April for a total of $600 million over the first four months of 1959. Loans for purchasing and carrying securities increased $500 million in April. Loans on U. S. Government securities increased early in the month in connection with Treasury financing operations, and subsequent reductions offset this rise only in part. Loans for purchasing and carrying securities other than those of the U. S. Government continued to rise. Deposits and currency. Demand deposit and currency holdings of businesses and individuals rose about $700 million more than the usual seasonal amount in April, as shown in Table 3. This followed seasonally adjusted growth of $900 million during the first quarter of 1959. At the end of April, the money supply was close to k-l/2 per cent above the year-ago level; last year in April, there had also been substantial growth. So far this year, the money supply has increased $1.6 billion, an annual rate of 3-1/2 per cent. In the comparable period last year, it rose $1.8 billion, an annual rate of Ij. per cent. U. S. Government deposits increased $700 million in April compared with an average April decline of Si billion over the past decade. Time deposits at commercial banks increased moderately further in April. So far this year, time deposits at commercial banks (after adjustment for structure changes) have increased $800 million compared with $3.8 billion last year and $2.3 billion in 1957. Growth in 1959 was about contparable with most other recent years, however. At mutual savings banks (after adjustment for structure changes) growth has been less than last year but about comparable with most other recent years. Deposit turnover. The seasonally adjusted annual rate of demand deposit turnover rose further at all reporting centers in April. The rate was 25 times at banks outside New York City and other financial centers, 57.3 times in New York City, and 32.8 times in six other financial centers. During the first quarter of 1959, the seasonally adjusted rate had increased to an average of 23.9 times at banks outside New York and other financial centers; this was four per cent above the first quarter of 1958 and slightly above the recent peak in the third quarter of 1957. (Seasonally adjusted data for deposit turnover have been revised recently by the Federal Reserve Bank of New Not for publication - 10 . Table 3 L.U.3 Estimated Changes in Deposits and Currency (In billions of dollars) Year ending 1958 19*8 1959 1959 April 29 April JO March 26 March 27 Jan, 1 Jan. 1 1958 1959 April 29 April 30 April 29 # r i l 30 Item Seasonally adjusted data 1/ b/ Demand deposits adjusted Currency outside banks Total Seasonally unadjusted data 1/ U / 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 than U. S„ Govt, sec. Commercial Mutual savings Bank holdings of U. S. Government securities t Federal Reserve Commercial Mutual saving and other Gold stock and foreign deposits at F, R. Banks Other factors + 0.6 + 0.1 + 0.7 + 0.8 + 0.2 + 1.0 + 1.5 + 2.5 2? + 2.5 + + + + + + + + + + - + o.U + o.U 4.K71 + 3,6 2,6 0.2 5.8 l.l l.l 0.1 - o.U + 3.5 -no.i + 1.6 2.7 0.8 3.5 1.6 1.3 0.3 0.2 1.9 + 5.6 + 2.1 - 0.3 + 1.8 + o.U + 6.0 + + + + . - 3.1 - 0.7 - 3.8 + U.5 5.6 0.3 5.9 6,3 + U.6 . +3.8 + 0.8 + 1.3 . + 2.1 + 1.8 - 0.9 +11.2 - 0.1 + 0.1 2/ - 0.1 + 0.2 + 0.1 + 8.7 + 7,0 + 2.1 + 1.3 +10.1 (signs indicate effect on deposits and currency) 3/ + 2.3 + 2.0 + 0.2 + o.U + 0.1 + o.U +1.0 + 0.8 + 0.2 TTJ — 0.1 + 3.2 - 0.1 y - 0.5 + 0.9 — o.U + 2.1 + 2,0 + 0.5 + 1,1 + 0,1 + 1.0 410,8 + 8.9 + 2.3 + 7.7 •TOT + 2.5 - 3.5 - 0.7 - 2.8 2/ Hi - 0,1 + 2.U + 1.9 + 0.8 - 0.3 + 5.1 + oZ + 5.3 - 0.2 - 0.3 - 0,8 - 2.1 - 1.7 - 0.3 + U.6 1I • 0.8 - 0.2 - 2.5 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 $50 million, 3/ Total includes foreign loan? on gold, holdings of bankers' acceptances at the Federal Reserve, and loans to foreign banks$ 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. k/ In April 1959 as a result of the addition of a bank in Hawaii, demand deposits adjusted increased about $100 million and time deposits increased about $100 million. In January 1959 as a result of the addition of all hanks in Alaska, time deposits at commercial banks increased almost $100 million and demand deposits adjusted increased about $100 million.As the result of the absorption of a mutual savings bank, time deposits at commercial banks increased $300 million, and those at mutual savings banks declined $300 million. Not for publication - 1 1 - LA.3 Table 3 (can't.) Estimated Changes in Deposits and Currency (In billions of dollars) First Four Months Item 1957 1956 1955 1954 1953 1952 Seasonally adjusted data l/ Demand deposits adjusted Currency outside banks Total + 0.6 2/ . + 0.6 + 0.3 - 0.1 + 0.2 + 2.3 + 0.2 + 2.5 2/ - 0.2 - 0.2 + 1.1 + 0.3 + 1.4 + 1.5 + 0.5 + 2.0 Seasonally unadjusted data l/ Demand deposits adjusted Currency outside banks Total Time deposits Commercial banks Mutual savings banks U. S. Government deposits Total + + + + - + + + + + + + + - - 3.9 - 1.4 - 5.2 + 1.6 + 1.0 + 0.6 4* 0.2 - 3.4 + + + - + + + + - # . • * e 3.8 1.3 5.1 0.9 0.4 0.6 0.6 - 3.6 Seasonally adjusted data l/ Demand deposits adjusted Currency outside banks Total Seasonally adjusted data l/ Demand deposits adjusted Currency outside banks Total Time deposits Commercial banks Mutual savings banks U. S. Government deposits Total 2.1 1.2 3.2 0.9 0.4 0.6 0.5 1.8 3.5 0.5 4.0 1.4 0.8 0.7 2.4 5.0 3.1 0.4 3.5 1.3 0.7 0.5 1.0 1.2 First Four Months Item 1951 1950 1949 1948 1947 1946 + 0.5 + 0.4 + 0.9 + 1.5 + 0.2 + 1.7 + 0.3 - 0.1 + 0.2 - l.l - 0.1 - 1.2 + 1.0 n.a. n.a. n.a. n.a. n.a. - 2.8 - 0.8 - 3.6 2/ 2/ + 0.2 + 2.8 + + + + + + - + + + + - + + + - + 1.6 00 • 1 * 4.1 0.9 5.0 2.7 2.3 0.4 0.2 2.1 O ® 1.5 0.8 2.3 0.9 0.5 0.4 2/ - 1.4 3.1 1.2 4.3 0.6 0.3 0.3 0.4 4.0 4.4 1.1 5.5 0.5 0.3 0.3 1.4 3.6 2.0 0.6 2.6 1.0 0.6 0.3 0.2 1.8 ~ + i.k + 2.2 + 1.5 4- 0.6 - b.g - 1.3 l/ 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. Hot for publication York). Turnover in six financial centers in early 1959 also slightly exceeded the 1957 peak but in New York City it was still somewhat below the mid-1958 peak. Bank reserves. Net borrowed reserves of member banks averaged $21*0 million in April, $100 million higher than in March as shown in Table 2u The average level of borrowings rose to $675 million, $75 million higher than a month earlier and excess reserves dropped to $ W ) million, somewhat below the March level. Reserve positions were considerably tighter at central reserve city banks in New York City and somewhat tighter at reserve city banks in April than they had been in March. They were about unchanged at country banks and somewhat easier at central reserve city banks in Chicago, but the latter reflected the usual reductions in borrowings following the April personal property tax date in Cook County, Illinois. Over the month of April, as shown in Table 5> reserves were absorbed mainly by an increase in required reserves and an outflow of currency into circulation. Required reserves increased # 0 0 million in the week of April 8, reflecting bank purchases of new Treasury issues on April lj in the following three weeks they declined $165 million. Gold stock declined $1*5 million over the month, on the average, but foreign deposits at the Reserve Banks also dropped somewhat. On a weekly average basis, gold stock declined over $100 million during April and there were further reductions in early May. The outflow of gold had slackened in late 1958 and in the first quarter of 1959 had totaled $85 million. During April reserves were supplied principally by System purchases of U. S. Government securities; securities purchased under repurchase contracts increased substantially early in the month when funds were being absorbed through the increase in required reserves but these acquisitions were permitted to run off by the monthend. Interest rates. The effective rate on Federal funds remained at 3 per cent on all but two days in April. The rate on 4-6 months prime commercial paper rose to 3-1/2 per cent from 3-3/8 per cent; that on bankers' acceptances to 3-1/8 per cent from 2-7/8 per cent; and that on 3-6 months finance paper, to 3-3/8 - 3-1/2 per cent from 3-1/4 - 3-3/8 per cent. Not for publication .3 - 13 - Table 4 Free Reserves (excess reserves minus member bank borrowings; based on average of daily figures; in millions of dollars) All member New York Chicago Reserve City Country Quarterly averages 1958' First Second Third Fourth 314 508 341 25 - 10 18 - 28 - 44 - - - 16 4 1 17 27 63 - 55 - 194 366 422 424 280 1959: First - 82 - 25 - 67 - 215 225 1958: January February March April May June July August September October November December 122 324 495 493 54? 484 546 383 95 96 20 - 4l - 46 25 42 3 51 7 16 22 79 8 43 80 - 25 6 18 7 7 12 4 - - 144 1 62 44 89 57 56 - 22 - 201 - 198 - 189 - 197 337 353 408 459 399 408 471 426 378 305 268 268 1959: January February March April - 59 - 47 - 140 - 237 - 65 28 16 89 - 53 - 26 - 122 - 64 - 223 195 228 286 281 202 194 201 - 16 71 61 110 180 19 54 - 205 - 143 - 159 - 62 - 43 - 22 - 31 - 206 192 254 275 292 292 343 252 119 212 189 320 192 152 March 25 April 1 8 15 22 May 2 ?6 - 143 145 262 258 195 241 275 - - — — 3 3 16 32 Note: Data for last half of April and May are preliminary. - lU — L.U.3 Table 5 Changes in Member Bank Reserves, with Relevant Factors (Monthly average of daily figuresj in millions of dollars) Item January.•April 1958 1959 April 1958 1959 Year end:Lng April 1958 1959 Member bank reserve balances Total Required reserves 1/ Effect of reduction in requirements Effect of deposit change Excess reserves 1J +257 +257 - 22 Principal factors Currency in circulation Gold stock and foreign accounts Treasury operations Federal Reserve float Other factors Effect of above factors on reserves -336 - 23? -1.026 + 270 - 693 -328 - 157 -1,072 + h5h - 809 - 157 78 -1,126 + 5U ,+ U6 - 31U - 181 -1,126 + 317 + 116 -50U +176 - 8 ! 1 + 768 (signs :.ndicate eif feet on reserves' - 78 - 6U +1,066 .+1,279 - - 16 - 9 - 17 + 70 -38U - 1 - - 181 - 559 h - 525 23 ,579 253 29U - ,101 - $0 - 29 -10 -188 - + 28 651 - 39 -1,779 + 72 + 73 13 + 66 110 2)46 -2,298 - 209 182 U. S. Govt, securities Outright Repurchase agreements , Special certificates Acceptances Discounts and advances? To member banks To others +286 +152 - 530 - 92li +2.568 - +215 +163 - 651 + 27 + - 333 23 357 +2.012 +1,900 + 113 + - 517 108 5 8 + ik + 77 - 3 + 75 - 1 1f Data for April 1959 are preliminary. Not for publication 32 » Federal Reserve loans and investments% Total + -11 -11 - 67b - 2 - 9 - 8 1 * + 119 11 - mmtm 580 6 + + 5U6 18 + - - mo 881 25 — 15 — Deposits and Currency L.4.3 Year or month End of Dec. 19k7 19U8 19k9 1950 1951 1952 1953 195k 1955 1956 1957 1958 s Mar. 26 Apr. 30 May 28 June 23 July 30 Aug. 27 Sept.2k Oct. 29 Nov. 26 Dec. 31 1959: Jan. 28p 3 / Feb. 25p Mar. 25p Apr. 29P V (10) (8) (9) (6) (U) (5) (7) Seasonally Time deposits adjusted U. S. money Demand Gov't, Cursupply and deposits Demand rency Total Commer- Mutual Postal deposits time dep. adjusted deposits (7+8+9) cial savings savings 2/ outside at com'l. adjusted banks banks(1+7) (1) (2) (3) Seasonally adjusted money supply 1/ Total (2+3) (11) (12) Total deposits Curand rency outside currency (5+6+10 banks +11) 26.5 26.1 25.k 25.k 26.3 27.5 28.1 27.9 • 28.3 28.3 28.3 172.3 172.7 173.9 180.6 189.9 200.k 205.7 21k. 8 221.0 226.k 232.3 6.k 6.0 6.1 10.0 k.8 6.2 5.0 k.2 6.3 k.9 27.k 27.6 27.8 27.8 27.9 28.0 27.9 28.0 28.8 28.7 230.9 23k.k 23k. 3 239.5 237.2 238.7 238.1 2k0.6 2k3.7 2k7.5 5.3 5.0 k.k 5.1 27.6 27.7 27.9 27.9 2k5.1 2k2.7 2k2.0 2k5.6 111.1 108.8 109.0 llk.3 120.1 12U.7 126.8 129.7 133.2 13k.k 133.2 85.2 83.5 8k. 3 89.8 9k.5 97.8 99.5 102.8 105.8 106.7 105.1 25.9 25.3 2k. 7 2U.5 25.6 26.9 27.3 26.9 27.U 27.7 28.1 1U6.3 lWl.6 1U5.1 150.6 158.0 165.U 170.5 176.5 181.6 185.0 189.3 87.1 85.5 85.8 92.3 98.2 101.5 102.5 106.6 109.9 lll.k 110.3 56 .U 57.5 58.6 59.2 61.5 65.8 70.U 75.3 78 .U 82.2 89.1 35.2 35.8 36.1 36.3 37.9 k0.7 1+3.7 I16.8 k8.k 50.6 56.1 17.7 18.k 19.3 20.0 20.9 22.6 2k.k 26.3 28.1 30.0 31.7 3.k 3.3 3.2 2.9 2.7 2.5 2.k 2.1 1.9 1.6, 1.3 2.3 3.6 k.l 3.7 3.9 5.6 k.8 5.1 k.k k.5 k.7 13k.0 135.0 135.5 135.lt 137.6 137=3 136.7 138.1 138.8 139. k 106. k 107.2 107.6 107.U 109.5 109.2 108.9 110.2 U0.6 111.3 27.6 27.8 27.9 28.0 28.1 28.1 27.8 27.9 28.2 28.1 192.8 19U.9 196.2 196.9 199.9 200.0 199. k 201,0 200.9 202.6 10k.6 107.2 105.8 106.2 108.1 107.5 108.1 111.0 111.9 115.5 92.5 93.6 9k. 6 95.5 96.U 97.0 97.2 97.lt 96.7 98.3 58.8 59.9 60.7 61.5 62.3 62.7 62.7 62.9 62.1 63.2 32.k 32.5 32.7 32.8 32.9 33.1 33.3 33.k 33.5 3k.0 1.3 1.2 1.2 1.2 1.2 1.2 1.2 1.2 1.1 1.1 138.5 139.1 11*0.3 lkl.O 110.7 111.2 112.2 112.8 27.8 27.9 28.1 28.2 201.9 202.8 20U.U 205.5 113.8 111.3 110.3 112.8 98.k 98.7 99.5 99,9 63.lt 63.7 6U.i 6k.5 33.8 3k.O 3k.3 3k. 3 1.1 1.1 1.1 1.1 1/ Seasonally adjusted series begins in 19k7 and is available only for last Wednesday of the month. 2/ At commercial, savings, and Federal Reserve Banks. 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, time deposits at commercial banks increased $300 million and those at mutual savings banks declined $300 million. k/ As a result of inclusion of a national bank in Hawaii, demand deposits -adjusted increased about $100 million and time deposits at commercial banks about $100 million. http://fraser.stlouisfed.org/ Not for publication ^ ^ ^ ^ ^ ^ ^ £ q Federal Reserve Bank of St. Louis L.V.3 - 16 Loans and Investments at All Commercial Banks (In billions of dollars) U. S. Loans ConHeal Secuand Govt, Other Total invest- secur- secur- loans Business estate rity Farm sumer ities ities ments Date # All other Dec l 31 Dec; 31 Dec; 31 Dec; 31 Dec. 31 Dec. 31 Dec; 31 Dec; 31 Dec. 31 Dec. 31 Dec. 31 116.2 114.2 120.1 126.6 132.5 l4l,5 145.5 155.7 160.3 164.5 169.3 69.2 62.6 67.O 62.0 61.5 63.3 63.4 69.O 6l.6 58.6 58.2 9.0 9.2 10.2 12.4 13.3 14.1 14.7 16.3 16.7 16.3 17.9 37.9 42.4 42.9 52.2 57.6 64.0 67.4 70.4 82.0 89.7 93.2 18.2 18.9 17.1 21.9 25.9 27.9 27.2 26.9 33.2 38.7 40.5 9-4 10.8 11.5 13.5 14.6 15.7 16.7 18.4 20.8 22.5 23.I 2.1 2.3 2.6 2-9 2.6 3.2 3.6 4.5 5.0 4.3 4.2 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 10.9 10.9 13.2 14.6 15.7 2;8 3.1 3:4 4.2 4.5 4.9 5-1 5.6 6.5 7-0 7.3 1958: Jan; 29 Feb; 26 Mar; 26 Apr. 30 May 28 e June 23 July 30 Aug. "27 Sept.2% Oct; 29 Nov. 26 # Dec. 31 166.2 167.1 169.9 174.0 173-8 178.2 176.2 178.3 177.9 180.1 182.7 184.4 57-7 58.3 59.6 62.8 63.1 64.2 64.1 66.1 64.7 66.2 67.7 66.4 17.9 18.2 18.9 19.3 19.4 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 93-4 94.7 97.5 38.8 38.6 39.2 38.4 / 38.1 38.9 37.9 38.3 38.7 38.9 39.3 4o.4 23.I 23.2 23.2 23.3 23.5 23.7 23.9 24.1 24.3 24.7 25.O 25.3 3.6 3.9 4.2 5.1 4.4 5.6 4.5 3.6 3.7 3.6 3.9 4.7 4.2 4.4 4.4 4.4 4.4 4.6 4.6 4.6 4.7 4.8 4.9 5.0 15.5 15.3 15.2 15.3 15.4 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 7.4 7.6 7.5 7-7 8.0 8.3 1959: l/ Jan. Feb. Mar. 2/ Apr. 183.8 181.9 181.1 183.7 67.5 65.5 63.2 63.6 20.4 20.4 20.6 20.9 95-9 96.0 97.b 99.2 39.2 39-2 40.? U0.I4 25.6 25.7 25.9 26.3 4.2 4.0 3.9 h.h 5.0 15.9 5.0 16.0 4.8 16.1 U.9 16. h 1947: 19^8: 1949: 1950: #1951: 1952: 1953: 195%: 1955: 1956: #1957: • 28p 25p 25p 29p 8.1 8.2 8.4 8.7 l/ Total credit increased over $400 million in January as a result of bank, structure changes. 2/ Total credit increased about $200 million as a result of the inclusion of a national # bank in Hawaii. Note: Data exclude interbank loans. Total 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 April 29, 1959 are preliminary estimates based # on data reported by a sample of member banks. Loans by type have been revised in accordance with preliminary member bank loan data for March 12, 1959* Hot for publication
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