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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 A l l Member wemoer Banks mrucs C e n t r a l Reserve C i t y member banks Change since Chicago New York j1 June V ULLV Y V T Dec. 31, ]1947 N AIRT .Tune "30. IChanee since since 1 June 30. 1 V UILV Y V / J Change 1948 w Amount % Dec.31,1947* 1948 (Dec.31«1947 i! , 1948 . 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' /IMKLB/SM I ^ A M L ^ I M oounxry Mmemoer oanKS member banks June June 30,, Chancre nhanpffi sine© sine** V/IICUXGV *-/ J. J I V V / WXIVUIKV M J 11VV U 1 1 Q "30. 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*
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