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j> ). • -g^VEMIOtotS?GOVERNORS OF THE FEDERAL RESERVE SYSTEM (For immediate Release) November 12, 1952 Hal - r e s e r v | ; 3 > CHANGES IN COMMERCIAL AND INDUSTRIAL LOANS BY INDUSTRY The $195. m i l l i o n i n c r e a s e i n commercial,^ i n d u s t r i a l , and a g r i c u l t u r a l l o a n s a t weekly r e p o r t i n g member banks d u r i n g t h e w.eek -ended Novmber 5 i n c l u d e d new borrowings i n p r a c t i c a l l y a l l b u s i n e s s c l a s s i f i c a t i o n s . The p r i n c i p a l i n c r e a s e s were $50 m i l l i o n i n l o a n s t o s a l e s f i n a n c e companies, $1*2 m i l l i o n to. commodity d e a l e r s , $37 m i l l i o n t o m a n u f a c t u r e r s of fo.o;d, l i q u o r , and tobacco p r o d u c t s , $32 m i l l i o n t o p u b l i c u t i l i t i e s , $22 m i l l i o n t o m a n u f a c t u r e r s of m e t a l s and metal p r o d u c t s , and .$15 m i l l i o n t o t h e wholesale and r e t a i l t r a d e , F o l l o w i n g s i x weeks-of d e c r e a s e s , l o a n s t o manuf a c t u r e r s -of t e x t i l e s , a p p a r e l , and l e a t h e r p r o d u c t s i n c r e a s e d $5 m i l l i o n . Changes i n l o a n s d u r i n g t h e week and Since mid-year were as f o l l o w s ; • : ; Business of Borrower \ Manufacturing and minings Btiod, l i q u o r , and tobacco T e x t i l e s , a p p a r e l , and l e a t h e r Metals and m e t a l p r o d u c t s petroleum}" c o a l , chemicals, & r u b b e r Other m a n u f a c t u r i n g and mining Trade — w h o l e s a l e and r e t a i l Commodity d e a l e r s Sales f i n a n c e companies p u b l i c u t i l i t i e s and t r a n s p o r t a t i o n Construction Other t y p e s of b u s i n e s s *' *• . Classified changes'- net U n c l a s s i f i e d changes - n e t ' y ; ' C •' Net: change i n commercial, i n d u s - ., t r i a l , and a g r i c u l t u r a l l o a n s - Week ended / Since • November 5~* June- 25— ( i n m i l l i o n s of d o l l a r s ) . +567 + 37 + lh + 5 • . '. : + 22 • : - 75 +156 + 67 + 15 + It2 + 50/ + 32 - 1 — 3 ; ; ' ' + 2k +105 +198 : : . .. ' T <• 3 ' , +151 +589 +122 -105 : +1,617 + 68 +1,685 p / . p r e l i m i n a r y } see f o o t n o t e on a t t a c h e d t a b l e , ; ; i n a d d i t i o n t o t h e weekly t a b l e , a monthly t a b l e i s a t t a c h e d showi n g changes during October compared w i t h the. preceding month, w i t h October .1951, and with t h e p a s t twelve months. . V -; • j The. changes during" October were q u i t e s i m i l a r i n most r e s p e c t s t o t h o s e d u r i n g September and a year ago October. There have been f u r t h e r i n c r e a s e s i n l o a n s t o commodity dealers, and to m a n u f a c t u r e r s of f o o d , l i q u o r , and t o b a c c o - p r o d u c t s , ; c o n t i n u i n g . t h e s e a s o n a l borrowings by t h e s e p r o c e s s o r s and d i s t r i b u t o r s t o f i n a n c e t h e crop movement. Loans t o t h e w h o l e s a l e and r e t a i l t r a d e s , to m a n u f a c t u r e r s of m e t a l s and metal p r o d u c t s , t o m a n u f a c t u r e r s and p r o d u c e r s of p e t r o l e u m , c o a l , c h e m i c a l s , and r u b b e r p r o d u c t s , and t o "othei" manufacturing and mining b u s i n e s s e s have a l s o i n c r e a s e d , b u t a t a more r a p i d r a t e t h a n l a s t month o r a y e a r ago October. Loans t o m a n u f a c t u r e r s of t e x t i l e s , a p p a r e l , and l e a t h e r p r o d u c t s d e c l i n e d d u r i n g October i n c o n t r a s t t o a nominal i n c r e a s e i n September, but t h e d e c l i n e was l e s s t h a n i n October a y e a r ago. Loans t o s a l e s f i n a n c e comp a n i e s and t o p u b l i c u t i l i t i e s , which had i n c r e a s e d i n September, d e c r e a s e d i n October. H.12 - 2 ~ S i n c e t h e o n l y c o m p a r a b l e p e r i o d f o r which c h a n g e s i n commercial l o a n s a c c o r d i n g t o i n d u s t r y a r e a v a i l a b l e f o r 1950 was between m i d - y e a r and November 1, 1950, a c o m p a r i s o n o f t h o s e c h a n g e s w i t h t h e two s u b s e q u e n t y e a r s i s shown i n t h e f o l l o w i n g t a b l e ; t h e d a t e s d i f f e r somewhat, b u t t h e y c o v e r p r a c t i c a l l y t h e same p e r i o d s . B u s i n e s s of Borrower June 2 5 Oct. 29, 1952 June 2 7 Oct. 31, 1951 . July 1 Nov. 1 , 1950 ( i n m i l l i o n s of d o l l a r s ) M a n u f a c t u r i n g and mining ;; Food, l i q u o r , and t o b a c c o T e x t i l e s , a p p a r e l , and l e a t h e r M e t a l s and m e t a l p r o d u c t s Petroleum, coal,-chemicals, & rubber O t h e r m a n u f a c t u r i n g and m i n i n g T r a d e — w h o l e s a l e and r e t a i l • Commodity d e a l e r s S a l e s f i n a n c e companies P u b l i c u t i l i t i e s and t r a n s p o r t a t i o n Construction A l l o t h e r t y p e s of b u s i n e s s +530 +10 - 97 +157 +67 +521 -217 +537 + 68 + 75 +136 +548 +72 -137 .+25 +107 + liO +394 -104 +318 - 61. - 6 : , +413 +130 - 17 + 19 + 17 +272 +690 +324 + 50 +55 •»-113 C l a s s i f i e d changes — n e t U n c l a s s i f i e d changes - n e t +1,419 + 71 +1,566 ~2l5 +2,065 Net change i n c o m m e r c i a l , i n d u s t r i a l , a.nd a g r i c u l t u r a l l o a n s +1,490 +1,351 +2,874 The r e c e n t e x p a n s i o n , of commercial l o a n s h a s b e e n s l i g h t l y more t h a n t h a t i n 1951 / b u t i n b o t h y e a r s i t was o n l y a b o u t h a l f t h a t of t h e comparable p e r i o d of 1950, , The p a t t e r n of t h e l o a n s c l a s s i f i e d d u r i n g t h e t h r e e p e r i o d s h a s b e e n somewhat s i m i l a r i n t h a t a l a r g e p r o p o r t i o n o f t h e l o a n e x p a n s i o n h a s b<§en t o commodity d e a l e r s and t o p r o c e s s o r s of f o o d p r o d u c t s . However, i n many r e s p e c t s t h e p a t t e r n s f o r t h i s . y e a r h a v e been more l i k e 1950 t h a n 1951* Loans t o m a n u f a c t u r e r s and p r o d u c e r s of p e t r o l e u m , c o a l , c h e m i c a l s , and r u b b e r , and t o t h e w h o l e s a l e and r e t a i l t r a d e i n c r e a s e d i n a l l t h r e e y e a r s ; t h e p e t r o l e u m , c o a l , c h e m i c a l s , and r u b b e r e x p a n s i o n was p r o g r e s s i v e l y g r e a t e r each y e a r , w h i l e t h e r e c e n t i n c r e a s e i n t r a d e I b a h s , t h o u g h r e l a t i v e l y l a r g e a s compared w i t h 1951, was o n l y h a l f t h a t of 1950. Loans t o m a n u f a c t u r e r s of m e t a l s and m e t a l p r o d u c t s , which had i n c r e a s e d more t h a n any o t h e r i n d u s t r i a l c a t e g o r y in. 1951, d e c r e a s e d ' t h i s y e a r a s t h e y had i n 1950. Loans t o m a n u f a c t u r e r s of t e x t i l e s , a p p a r e l , and l e a t h e r , and t o s a l e s f i n a n c e companies have i n c r e a s e d i n t h e p a s t f o u r months a s compared w i t h a d e c r e a s e a y e a r a g o ; i n 1950, t h e y i n c r e a s e d s u b s t a n t i a l l y . Loans t o p u b l i c u t i l i t i e s d e c r e a s e d t h i s y e a r a s compared w i t h i n c r e a s e s d u r i n g t h e c o r r e s p o n d i n g p e r i o d s of t h e p r e v i o u s two y e a r s . CHANGES IN COMMERCIAL AND INDUSTRIAL LOANS OF A SAMPLE OF WEEKLY REPORTING MEMBER BANKS BY INDUSTRY AND FEDERAL RESERVE DISTRICT, WEEK ENDED WEDNESDAY, NOVEMBER 5> 1952 Business of Borrower Manufacturing and miningt Food, l i q u o r , and tobacco T e x t i l e s , apparel, and leather Metals and metal products (including machinery & t r a n s p o r t a t i o n equipment) Petroleum, c o a l , chemicals, and rubber Other manufacturing and mining (In m i l l i o n s of d o l l a r s ) Phila- |Cleve-|Richmond delphial land All Dist r i c t s ii *6 *v .5 + 8i7 + 7.0 + 1»U .1 .9 + i7 1.U +1U.6 + 2i7 + .3 + + +22. k - 1.2 - .3 Trade$ Wholesale Retail 2.1 +21,2 + 2*6 +35.8 +26,9 - 1,2 +50.1 2.2 +32.0 l.U Construction - l.U A l l other types of business — 2.6 Net change i n commercial, i n d u s t r i a l , and a g r i c u l t u r a l loans +195.0 .k — •8 + ~ + + - - .1 + + .1 + 1.0 + 1.2 + .8 —— •* .3 *5 +20*0 + 1,U — 2 . 0 + #1 + .5 - 3.3 + 1.7 + .2 - .3 .3 .2 .2 - — + • 5 .1 •.1 1.2 + + .1 #2 + .6 #6 + 1,2 2.7 + .1 .6 - + .3 - fh •h + + •it •6 + 1.6 + 1.1 + 1.0 + .1 — ih •7 + .1* + 2.0 + 1,3 * 7,7 - - .1 -- - luO + + ,h + +13.3 + .2 - .it - rk + .1 - .3 + 1.1 + 3.1 +12,3 +33.1 * - 2.1 - 1.3 m 3,1 + 1.0 +11.0 +30.0 4* 2*7 T 2.6 .9 - .7 - 3.7 + 5.1 +H5.3 + \0 S a l e s finance companies Public u t i l i t i e s (including t r a n s p o r t a t i o n ) - 2.8 •3 + .*2 + 5,6 +U2.0 U n c l a s s i f i e d changes - n e t - 1.0 - 1*2 -f • 1 2.1 + .6 +197.8 *1 •8 an rran- Dallas + 2.6 - 1.7 - .2 r r avail- " Commodity dealers Net change i n c l a s s i f i e d l o a n s l / - nneLouislapolis Atlanta M CD H. 1 2 ( a ) + >5 - .9 - + 1.9 -15.3 —— .3 + 7.0+100.0 + 8 . 0 .5 — ,5 + .7 ,3 —• > + 3.5 - .5 able —• A 1.8 - ,2 + *3 + 1.3 + .2 + 1.3 — i«9 8.1& + 2.0 + 2.9 + 6,2 + 2.6 + 1.0 - .9 + 1.8 +lli.O +11.0 +3.o + 2.0 + 8.0 +1U.0 - + 1.5 p / Preliminary; f i n a l t o t a l s w i l l appear i n the F.R. B u l l e t i n and San Francisco D i s t r i c t f i g u r e s appear i n a release of the Reserve Bank. i/ sss z: 01 H. 1 2 ( b ) CHANGES IN COMMERCIAL AMD INDUSTRIAL LOANS OF A SAMPLE OF WEEKLY REPORTING MEMBER BANKS BY INDUSTRY Business of Borrower Manufacturing and mining* Food, l i q u o r , and tobacco T e x t i l e s , apparel, and l e a t h e r Metals and metal products (including machinery and t r a n s p o r t a t i o n equipment ) Petroleum, c o a l , chemicals, and rubber Other manufacturing and mining ( i n m i l l i o n s of d o l l a r s ) 5 weeks weeks 5 weeks ended ended ended October 51# 1951 September 24, 1952 October 29# 1952 12 months ended October 29, 19% +210.4 - 54*3 +176.4 + 6.9 +289.9 -159.4 + 75.6 -206.9 +111.4 + 42.3 + 36.2 + 5i6 + 18.4 + 17.8 + 84.8 + 26.5 + 5.6 +1,550.7 +590.4 +208.6 Trade — wholesale and r e t a i l +121.6 + 50.0 + 17^8 + Commodity dealers +261.6 +143.9 +229.7 +241.6 S a l e s finance companies - .3 +141.3 - 5.8 - 11.1 Public u t i l i t i e s (including t r a n s p o r t a t i o n ) - 59.7 + 50.2 + 99.6 -105,8 Construction + 3.9 + 3.3 - 27.8 + A l l other types of business - 8.0 + 25.6 + 19.8 +122.5 Net change i n c l a s s i f i e d l o a n s 3 / +665.1 +639.4 +602.5 +2,076.5 U n c l a s s i f i e d changes - net + 2.9 + 4o.6 -109.5 -375.5 Net change i n commercial, i n d u s t r i a l , and a g r i c u l t u r a l loans +668.0 +680.0 +495.0 +1,705.0 l/ See footnote on preceding t a b l e regarding current coverage. 6.7 6.4
@FedFRASER