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Governor Eccles
CONFIDENTIAL
CHANGES IN MEMBER BANK LOANS DURING THE FIRST HALF OF 19U8
(Based on p r e l i m i n a r y f i g u r e s )

Paul F» Smithy D i v i s i o n of Bank Operations
The attached t a b l e shows t h e breakdown of member hank loans o u t standing on June 30, 1948 compared w i t h December 31, 1947oi/ The June 30
f i g u r e s have been prepared from p r e l i m i n a r y data submitted by the Federal
Reserve Banks i n response t o the Board 1 s telegram of J u l y 9*
A l l member banks
Total
per cent i n the
l i o n o r 7-3 per
per cent i n the

loans a t a l l member banks increased $1,361 m i l l i o n or i u l
f i r s t h a l f o f 1948, compared w i t h increases o f $1,959 m i l cent i n the f i r s t h a l f of 19U7 and $3,973 m i l l i o n or 13.9
second h a l f of 19U7*

A l l of the major l o a n c l a s s i f i c a t i o n s show increases w i t h the
exception of commercial and i n d u s t r i a l l o a n s , which d e c l i n e d $326 m i l l i o n *
Loans t o brokers and dealers increased by $361 m i l l i o n , l a r g e l y f o r p u r chasing or c a r r y i n g United States Government o b l i g a t i o n s . This increase
was p a r t i a l l y o f f s e t by a decline of $110 m i l l i o n i n other loans f o r p u r chasing or c a r r y i n g s e c u r i t i e s , l e a v i n g a net increase of $251 m i l l i o n i n
t o t a l loans f o r purchasing or c a r r y i n g s e c u r i t i e s . Real-estate loans show
the l a r g e s t increase, $617 m i l l i o n ; consumer loans increased $510 m i l l i o n ,
and loans to farmers $190 m i l l i o n * The remaining $120 m i l l i o n increase
was d i v i d e d between loans t o banks and f , a l l o t h e r " loans*
Member banks by classes
Commercial and i n d u s t r i a l loans d e c l i n e d $190 m i l l i o n a t c e n t r a l
reserve c i t y banks and $292 m i l l i o n a t reserve c i t y banks t This i s i n
contrast t o an increase i n these loans a t countxy banks of $156 m i l l i o n *
Real-estate and consumer loans continued t o increase a t a l l
classes of banks, w i t h country banks showing an increase of $331 m i l l i o n
i n r e a l - e s t a t e loans and $281 m i l l i o n i n consumer loans* Reserve c i t y
banks showed an increase of $239 m i l l i o n i n r e a l - e s t a t e loans and $197
m i l l i o n i n consumer loans* The remaining increase of $47 m i l l i o n i n r e a l e s t a t e loans and $32 m i l l i o n i n consumer loans was d i v i d e d between New York
and Chicago c e n t r a l reserve c i t y banks*
Loans t o brokers and dealers increased $4l8 m i l l i o n a t New York
c e n t r a l reserve c i t y banks and decreased $57 m i l l i o n at other member banks*
Loans t o others f o r purchasing or c a r r y i n g s e c u r i t i e s declined $110 m i l l i o n ,
of Twhich $75 m i l l i o n was a t reserve c i t y banks*
Of the $190 m i l l i o n increase i n loans t o farmers, $163 m i l l i o n
was a t country banks and $28 m i l l i o n a t reserve c i t y banks *

Attachment
J u l y 27, 1946

l / December 31 f i g u r e s have been adjusted on a p a r t l y estimated b a s i s i n
order t h a t they may be s u b s t a n t i a l l y comparable w i t h c u r r e n t f i g u r e s :
(1) f o r the change i n t h e method of r e p o r t i n g v a l u a t i o n reserves? (8)
f o r the r e c l a s s i f i c a t i o n of reserve c i t i e s on March 1, 1948; and (3)
f o r t h e reserve r e c l a s s i f i c a t i o n of a number pf banks i n P h i l a d e l p h i a *



LOANS OF MEMBER BANKS* BY CLASSES* JUNE 30. 1918 COMPARED WITH DECEMBER 31. 19A7

Item
Commercial and i n d u s t r i a l loans
Loans t o farmers guaranteed by
Commodity C r e d i t Corporation
Other loans t o fanners
Loans t o brokers and dealers i n
securities
Other loans f o r purchasing or c a r r y i n g
securities

( P r e l i m i n a r y f i g u r e s . I n thousands of d o l l a r s )
ah l Member Banks
A l wemoer mrucs
C e n t r a l Reserve C i t y member banks
Change since
Chicago
New York
j1
June Y V T
V ULLV
Dec. 31, ]1947
N AIRT
.Tune "30. IChanee since 1 V U I L V Y30. Change since
June V / J
1
1948
Amount
%
1948 (Dec.31«1947w i! , 1948 . Dec.31,1947*
1,357,377 - 67,305
16,725,338
325,755 - 1*9 5,275,035
-122,894
17,533 — 26,015
1,221,428 + 215,865

-59*7
+21.5

197

1,171,658 +

+44.5

110,419 —10.4

956,347

-

360,921

—

—

1,936

15,597
967,359

- 21,357
+184,592
822

1,104

252,164

- 4,658
+ 32,262

61,138

- 11,772

125,565

- 44,201

22,106

74,573

- 12,274

417,155

- 74,753

214,521

—

—

115

1,708

962,849

+417,716

250,098

- 17,018

+

Reserve CityF* JW 1VI 1'
oounxry M /IMKLB/SM oanKS
memoer I ^ A M L ^ I M
member banks
June "30. nhanpffi *-/ J. J I V V / June 30,, Chancre M J 1 1 V V
sine©
sine**
V/IICUXGV
WXIVUIKV
U11Q
Dec.31.1947 .
1948
1948
Dec.31.1947*
-291,960
6,792,502
3,300,424
+156,404

-

-

6,374

Real-estate l o a n s :
414,510
778
+ 38,831
111
494,528 +
On farm land
+ 7,490
46,097 +10.3
79,215
25
113
+195,670 '
105,661 + 36,204
On r e s i d e n t i a l p r o p e r t y
29,922 +
3,038,813
+232,659
2,688,643
248
5,863,039 + 464,781 + 8 . 6
610
On other p r o p e r t y
+ 35,406
+ 59,463
54,884 + 10,356
547,715
794,6a
1,413,045 + 105,835 + 8 . 1
15,805 +
Other loans t o i n d i v i d u a l s :
435,326
+121,168
R e t a i l automobile i n s t a l m e n t paper
29,752 + 8,432
34,196 + 3,593
495,251
+102,224
994,525 + 235,417 +31.0
37,822 + 7,949
Other r e t a i l i n s t a l m e n t paper
599,740 + 115,824 +23.9
+ 52,932
272,474
+ 43,568
200,303
89,141 + 11,375
Repair and modernization i n s t a l m e n t
215,530
273,100
+ a , 226
loans
558,970 +
+ 23,445
17,399 + 1,300
75,153 +15.5
52,941 + 9,182
+ 23,972
Instalment cash loans
783,988 +
281,105
410,855
+ 43,248
7,185
124
63,291 + 8 . 8
84,843 - 3,805
978,770
- 14,278
+ 40,673
Single-payment loans
20,011 + . 9
437
59,455 5,947
880,954
359,465 2,278,644 +
5,157
Loans t o banks
160,558 +
+ 2,397
47,532 +42.1
+
5
17,319
103
259
137,979 + 45,389
+ 71,688
355,771
+ 8,230
A l l other loans
302,219
923,736 +
31,631 + 5,846
234,115 - 13,510
72,254 + 8.5
11,376,056
T o t a l loans and discounts - gross
4996,291
1,729,092 - 79,088
+ 62,595
13,420,944
34,163,077 +1,360,792 + 4 . 1 7,636,985 +380,994
124,562
+ 72,362
+ 28,793
14,897 + 7,897
66,893
Less r e s e r v e s ! /
293,292 + 118,992 +68.3
86,940 + 9,940
T o t a l loans and discounts - n e t
4967,498
13,296,382
11,309,163
- 9,767
1,714,195 - 86,985
33,869,785 +1,241,800 + 3 . 8 7,550,045 +371,054
I n computing the changes the December 31, 194-7 f i g u r e s x^ere adjusted on a p a r t l y estimated basis f o r the change i n method of r e p o r t i n g v a l u a t i o n r e s e r v e s ,
f o r the r e c l a s s i f i c a t i o n o f reserve c i t i e s on March 1, 194-8, and f o r the reserve r e c l a s s i f i c a t i o n o f a number o f banks i n P h i l a d e l p h i a *
1/

December 31, 194-7 f i g u r e s were estimated i n computing the change*




BOARD OF GOVERNORS CF THE FEDERAL RESERVE SYSTEM,
DIVISION OF BANK OPERATIONS,
JULY 27, 1948*