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BOARD OF
DF

GOVERNORS
THE

FEDERAL RESERVE SYSTEM

£
Frnm

ice Correspondence
Chairman Ecoles

Dflte

N vm e 19,1947
oe br

Subject:

Woodlief Thomas

I n response t o your request, the attached t a b l e shows f i g u r e s
on changes i n bank c r e d i t since December 19l|-5# the peak of the wartime
expansion*
There a r e , as you know, a l l s o r t s o f ways o f measuring t o t a l
bank c r e d i t , and they happen t o d i f f e r very s u b s t a n t i a l l y i n t h i s p a r t i c u l a r p e r i o d because of the sharp postwar c o n t r a c t i o n i n Treasury deposits
and i n bank holdings of Government s e c u r i t i e s , f o l l o w i n g the -wartime
expansion.
The p r i n c i p a l r e s u l t s are as f o l l o w s :
(In billions)
T o t a l loans and investments declined
but t h i s r e f l e c t e d a decrease i n
U» S* Government s e c u r i t i e s
(accompanying a s i m i l a r decline i n war loan
deposits)
Loans and other s e c u r i t i e s increased
T o t a l deposits o f a l l kinds declined
but t h i s was due t o the decline i n
U.S.Government deposits

- $9
- 20
+ 11
-

12

Demand deposits adjusted increased
Time deposits increased
T o t a l a d j u s t e d demand and time deposits increased
This l a s t i t e m i s the best a v a i l a b l e f i g u r e showing the net
e f f e c t o f commercial bank t r a n s a c t i o n s on the money supply, i * e * , deposits
of i n d i v i d u a l s , businesses, s t a t e and l o c a l governments, e t c . To t h i s
item,we would o r d i n a r i l y add the currency i n c i r c u l a t i o n , which has not
changed appreciably i n the past two years, and mutual savings bank deposits*
The t o t a l o f / t h e s e increased by 13 b i l l i o n i n
and - w i l l probably show
a f u r t h e r increase o f about 5 b i l l i o n i n 19U7*
a l l of "which came i n the
l a s t h a l f * This t o t a l showed an average annual gro^wth of 16 b i l l i o n i n
the f i v e war years, 191*1-14.5*
average o f I4. b i l l i o n f o r the 1936-14.0
p e r i o d of inhat was then considered r a p i d growth*




A l l Commercial Banks i n the United States
( I n millions of dollars)

Dec. 31,

T o t a l loans and investments.....

Sept. 24,
19*7 ? /

12k,019

115,080

Change

- 8,939

Loans.......................

26,083

35,550 •

+

U.S. Government s e c u r i t i e s . .

90,606

70,640

- 19,966

7,331

8,890

+

1,559

Reserves, cash, and b a l a n c e s . . . .

34,806

33,200

-

1,606

T o t a l deposits — unadjusted....

144,659

133,110

Demand deposits — adjusted.

75,851

84,200

+

8,349

Time deposits

30,135

34,900

+

4JJ^5.

105,986

119,100

+ 13,114

608

1,600

- 23,008

14,065

12,410

Other securities

Total
U. S. Government d e p o s i t s . . .
Interbank d e p o s i t s . . . .

p - preliminary.




9,467

- 11,549

-

1,655

©

CLASSIFICATION OF MEMBER0ANK LOANS AND INVESTMENTS

©

*

OTHER THAN U. S. GOVERNMENT SECURITIES

1920

1922

BOARD OF GOVERNORS OF THE FEDERAL




1924

1926

1928

1930

1932

RESERVE SYSTEM

1934 " 1936

1938

1940

1942

1944

1946
-¥R

LATEST F , C U R E S

J U N £

^

1948

CHANGE IN
S E E PAGE

SERIES,
82.

CONDITION OF 0 M B E R BANKS

I*"

BY CLASS OF BANK
BILLIONS OF DOLLARS

BILLIONS OF DOLLARS

CALL REPORT DATES THROUGH 1946 ( LAST WEDNESDAY OF MONTH 1947-

120

40

CENTRAL RESERVE CITY BANKS

100

32

80
24
60
16
40

8

20

0

0
MONTHLY AVERAGES OF DAILY FIGURES
TOTAL

20

I

RESERVE

BALANCES

_

~

—
|

|

|

—^BALANCES

DUE

TO

BANKS

DUE

1

FROM
1

BANKS

*

J

1942

1

1

1

|

1

LLLLLLLLLLL

1946

1944

RESERVE

BALANCES

•*

I

DUE T O




|

_

LLLLLLLLLLL

1948

RESERVES

—

|

LLLLLLLLLLL

1942

1944

1946

LLLLLLLLLLL

1948

C H A N G E IN SERIES, S E E PAGE 8 2 . C A L L D A T E S
TO JUNE 3 0 , 1 9 4 3 ; MONTHLY T H E R E A F T E R .
LATEST FIGURES

FIGURES

PLOTTED:

8

1

* v'

BOARD OF 'GOVERNORS OF THE FEDERAL RESERVE SYSTEM

LATEST

BANKS

REQUIRED
_

BALANCES

TOTAL

^ N ^ ^ B A L A N C E S

AUGUST

PLOTTED:

AUGUST