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F E D E R A L R E S E R V E BANK O F N E W Y O R K
r Circular No. 3 8 3 2 1
March 17, 1952 J

L

Operating Ratios of Member Banks in the Second Federal
Reserve District for the Year 1951
To all Member Banks in the
Second Federal Reserve District:

Net profits after taxes of all member banks in the
Second Federal Reserve District averaged 6.9 per cent
of capital funds (ratio 3) in 1951, compared with 7.7 per
cent in 1950. The lower average return was confined
entirely to the groups of banks outside New York City
and was attributable mainly to net losses on sales of
Government securities (a component of ratio 20). In
the three smallest deposit size groups, which together
comprise 617 banks or 84 per cent of the District mem­
bership, lower net current operating earnings, owing to
larger expenses, also contributed importantly to the
decline in average net profits; in fact, in the very small­
est size group of banks, it was the dominant cause of the
decline. In contrast, the large New York City banks
were able to maintain their average return on capital
funds and the smaller New York City banks to increase
the rate of return, because the substantially increased
income from loans improved net current operating earn­
ings sufficiently to enable them to offset much heavier
taxation and security losses or a lower level of security
profits. While the largest banks outside New York City
also increased their net current operating earnings, the
increase was not enough to meet charge-offs for security
losses and higher taxes.
The largest size New York City banks (group V II)
had a lower level of security profits and recoveries (ratio
25) in 1951, while all other groups of banks incurred
moderate net losses or charge-offs on securities in place
of the net profits of recent years. The losses stemmed
from sales of Government securities. After the TreasuryReserve System accord of last March, Government secur­
ity prices declined, and sales which took place subse­
quently were subject to the price fluctuations inherent
in an orderly but otherwise free market. On the average,
net losses on securities equaled one tenth of one per cent
of total holdings as contrasted with an average net
security profit of similar proportion in 1950. An analysis
of the individual returns shows that, of the 732 banks
in the District, 299 incurred net losses or charge-offs on
securities as compared with 198 a year ago, 203 had a
lower level of security profits or recoveries, 61 banks
reported no profits or losses in either 1950 or 1951, and
169 either converted 1950 security losses to net gains
in 1951 or increased the level of net security profits.
As a result of an above average increase in the volume
of loans and substantially higher effective rates of inter­
est on loans (item 26), the two largest size groups of
New York City banks increased total current earnings
substantially. The increases in their gross earnings,
however, were entirely offset by larger expenses, lower
security profits, and heavier Federal taxation. As a
result, their average rates of return on capital funds
remained unchanged at 5.8 per cent and 6.2 per cent,
respectively, although the narrower profit margin on the
larger total current income was reflected in substantial
declines in their ratios of net profits to total earnings
(item 22). In the smallest size New York City banks,
the rise in total earnings was sufficient not only to absorb
the higher charges and security losses but also to permit
an expansion in net profits. In the banking groups out­
side the City, the increases in loans were smaller, earn­



ings on loans and interest on securities remained rela­
tively stable, and except for the largest (group IV)
banks, the increased total earnings were insufficient to
meet even the increase in net current operating expenses,
without considering losses on security sales and some­
what higher taxes. It is noteworthy, however, that,
despite the 1951 declines in net profits for banks outside
New York City, their average return on capital funds
remained higher than the return of any of the New York
City groups.
Interest received on U. S. Government obligations
decreased on the average from 28.8 per cent of total
earnings in 1950 to 26.5 per cent in 1951, with the most
pronounced declines occurring in the large banks that
had shown the greatest expansion in loan volumes. For
all members, the average rate of return on Government
securities (ratio 23) increased from 1.8 per cent to 1.9
per cent, reflecting the somewhat higher yields obtainable
on refunded shorter-term issues in 1951 as contrasted
with 1950. The increased yields, however, were confined
to the larger size groups of banks, IV through VII, the
average rates received by the smaller size groups remain­
ing unchanged.
The principal item of expense, salaries and wages,
increased in dollar amount in all groups of banks, and
outside New York City the increases in salary payments
outstripped the rise in total earnings. Interest payments
on time and savings deposits, however, declined relative
to total earnings in all but the largest New York City
banks in which they are a rather unimportant segment
of total expenses. The effective rate paid on time deposits
(ratio 37) increased in all the New York City groups
of banks but most sharply in the largest institutions,
whereas outside the City and in the District as a whole
it remained unchanged. (Rate increases, however, have
become more frequent during the past few months.)
Taxes on net income increased on the average from
7.6 per cent of total earnings in 1950 to 8.0 per cent
in 1951 and principally reflected the effect of the higher
corporate normal and surtax rates that became effective
on April 1, 1951. In the New York City banks, particu­
larly the largest institutions, the increases were much
greater (from lS y2 per cent of total earnings to nearly
20 per cent in group V II banks) because of the higher
level of taxable income in most banks. In the banks
outside New York City, income subject to taxation was
generally lower but the higher tax rates resulted in
moderate increases in the amounts that had to be paid.
The dollar volume of dividend payments continued
the upward trend in effect since 1944 and increased mod­
erately in all groups of banks. The return to the
stockholder on the steadily increasing volume of capital
funds (ratio 4) was generally slightly higher in the
larger groups of banks and unchanged in the smaller
groups, averaging 2.5 per cent of capital funds in the
District as a whole. The volume of retained earnings
decreased in most groups, reflecting the combination of
smaller or unchanged net profits and higher dividend
payments.
A llan Sproul,

President.

1 9 5 1 Average Operating Ratios of Member Banks in the Second District, Grouped According to Size o f Deposits and Proportion o f Loans to Total Assets
All ratios are expressed in percentages and are arithmetical averages of the ratios of individual banks in each group, rather than ratios based on aggregate dollar figures
(New York City ratios on last page)
BANKS
N o te :

G R O U P I — Deposits under $2,000,000

ALL BANKS
Second D istrict

Balance sheet figures used as a basis fo r the 1951
ratios are averages o f am ounts reported for D ecem ­
ber 30, 1950, June 30, 1951, and O cto b e r 10, 1951.

G roup average

1950
SU M M A R Y R A TIO S

1950

1951

748

N u m ber o f B a n k s. .

1951
732

146

131

Group average

Loans t o total assets, per cent— 1951
30-39.9
C

22

32

40 and up
D

1950

1951

33

Under 20 20-29.9
B
A

OUTSIDE

M A N H A TT A N ,

44

227

Loans to total assets, per cent— 1951

224

30-39.9
C

73

36

64

G rou p average

40 and up

51

U nder 20 20-29.9
B
A

NEW

YO RK

CITY

G R O U P I I I — D eposits $5,000,000 to $20,000.000

G R O U P II— D eposits $2,000,000 t o $5,000,000

1950

262

Group average

30-39.9
C

40 and ur
D

1950

90

45

79

48

77

Loans t o total assets, per cen t— 1951

1951
87

U nder 20 20-29.9
A
B

1951

270

D

G R O U P IV — Deposits over $20,000,000

Loans t o total assets, per cent— 1951

9

30-39.9
C

40 and up
D

26

Under 20 20-29.9
A
B

£

S

26

26

£
©
C

P e r c e n t a g e o f T o t a l C a p it a l A c c o u n t s

1. Net current earnings before income taxes
2. Profits before income taxes.......................

11.6

11.6

10.1

9 .4

6 .0

8 .5

10.1

11.1

11.2

10.8

8 .5

10.5

11.5

12.2

12.7

12.7

1 0 .0

1 1 .8

13.4

1 5 .9

I f.9

14.0

11.0

13.0

13.2

16.9

i

10.6

9 .9

9 .3

8 .6

6 .0

8 .2

9 .3

9 .6

10.4

9 .5

7 .6

9 .6

9 .8

10.5

11.3

10.5

8 .7

10.1

1 1 .0

1 2 .3

11.8

11.1

9 .1

10.9

1 0 .0

13.1

2

3. Net profits .................................................

7.7

6 .9

7 .4

6 .6

4 .8

6 .5

7 .1

7 .4

8 .0

7 .0

6 .2

7 .2

7 .0

7 .5

7 .9

7 .0

6 .5

7 .1

7 .3

7 .0

8.1

7 .0

6 .4

7 .3

6 .4

7 .7

3

4. Cash dividends declared............................

£ .4

2 .5

£.1

2 .1

2 .3

1.9

2 .3

2 .1

2 .3

2 .3

2 .0

2 .3

2 .4

2 .4

2 .6

2 .6

2 .2

2 .6

2 .6

3 .0

3 .0

3 .1

2 .7

2 .9

3 .1

3 .4

4

5

P e r c e n t a g e o f T otal A sse ts

5. Total earnings ...........................................

£.90

2 .9 5

3.09

3 .0 7

2 .4 3

2 .7 9

3 .0 9

3 .5 7

2.92

2 .9 4

2 .3 2

2.71

3 .0 9

3 .5 3

2 .87

2 .9 4

2 .3 2

2 .6 7

3 .0 8

3 .7 8

£.86

2 .9 8

2 .3 6

2 .6 7

2 .9 8

3 .5 1

6. Net current earnings before income taxes

0.9S

0 .9 3

1.01

0 .9 6

0 .6 6

0 .8 4

1.02

1.16

0.96

0 .9 3

0 .6 5

0 .8 7

1.00

1.13

0.91

0 .9 1

0 .7 1

0 .8 5

0 .9 6

1 .1 5

0.86

0 .9 3

0 .7 4

0.81

0 .8 7

1.16

6

7. Net profits .................................................

0.62

0 .5 6

0.74

0 .6 9

0 .5 4

0 .6 4

0 .7 3

0 .7 7

0.68

0 .6 0

0 .4 7

0 .6 0

0 .6 1

0 .7 0

0.67

0.51

0 .4 5

0 .5 1

0 .5 4

0 .5 1

0.55

0 .4 8

0 .4 4

0 .4 6

0 .4 3

0 .5 6

7

8. Interest on U. S. Government securities.............
9. Interest and dividends on other securities..........
10. Earnings on loans1 ...............................................

£8.8

2 6 .5

£7.4

2 5 .6

4 0 .7

3 2 .3

2 2 .4

15.8

29.3

2 7 .4

4 4 .8

3 1 .7

2 2 .5

14.9

30.3

28 .1

4 3 .9

3 1 .6

2 3 .1

1 4 .8

£6.4

2 3 .2

3 6 .8

2 8 .6

2 1 .2

15.1

8

6.S

6 .7

6 .7

7 .2

15.3

7 .9

5 .5

4 .0

6 .7

6 .9

10.3

7 .7

6 .1

4 .2

6 .0

6 .6

1 1 .3

7 .9

4 .6

2 .9

6.3

6 .2

11.3

6 .2

7 .0

3 .8

9

61.8

5 3 .8

67.0

58.1

3 4 .8

5 0 .0

6 2 .8

7 2 .2

62.6

5 4 .4

3 1 .5

4 9 .1

6 0 .4

70 .9

49.4

51.1

3 0 .8

4 5 .6

5 8 .2

6 8 .9

50. £

5 4 .4

3 3 .8

4 6 .3

5 7 .3

6 8 .7

10

11. Service charges on deposit accounts......................
12. Other current earnings......................................... .

7.2

7 .2

6 .7

5 .9

5 .6

6 .3

6 .1

5 .4

7.0

6 .9

8 .7

6 .8

6 .5

6 .4

8.3

8 .3

8 .4

8 .6

8 .7

6 .9

6.9

7 .2

8 .3

7 .2

7 .1

6 .8

11

6 .9

5 .8

S.£

3 .2

3 .6

3 .5

3 .2

2 .6

4-6

4 .4

4 .7

4 .7

4 .5

3 .6

6 .0

5 .9

5 .6

6 .3

5 .4

6 .5

10.£

9 .0

9 .8

11.7

7 .4

7 .6

12

13.
Total earnings ...................................................
14. Trust department earnings2 ( part o f item 12) . . .

100.0

100.0

100.0

100.0

100.0

100.0

100 .0

100.0

100.0

100.0

100.0

100.0

100 .0

100.0

100.0

100.0

100 .0

100.0

100 .0

1 0 0 .0

100.0

100.0

100.0

100.0

100 .0

100.0

13

3.4

3 .1

1-4

1.3

1.4

1 .0

0 .8

2 .1

1 .6

2-4

2 .2

2 .0

2 .6

2 .2

1 .5

4-6

4 .0

4 .7

5 .0

3 .5

2 .8

14

15. Salaries and wages..................................................

SO.6

3 1 .5

31.0

29.8

3 1 .2

3 3 .3

3 0 .9

3 0 .7

3 0 .8

29.8

3 0 .8

30.1

3 0 .7

3 1 .8

2 9 .8

32.4

32 .6

3 2 .9

3 3 .8

33.1

3 0 .8

15

SOURCES A N D D IS P O SIT IO N O F E A RN IN G S
P e r c e n t a g e o f T o t a l E a rn in g s

-

-

-

32 .2

-

3 3 .6

3 5 .8

-

3 0 .8

3 0 .5

16. Interest on time deposits.........................................

13.6

13.1

13.4

13.1

14.7

12 .7

12.4

13.0

14.8

14.3

16.1

14.7

13.6

13.2

14.1

13.9

16.7

14.1

12.9

12.8

11.6

11.2

12.3

10.4

1 2 .0

10.9

16

17. Other current expenses......................................... .

£3.9

2 3 .8

£3.1

23 .5

22.1

2 3 .4

23.7

2 4 .2

23.1

23.1

2 2 .5

2 2 .5

2 3 .3

24 .2

24.1

2 4 .0

2 2 .9

2 3 .5

2 4 .1

2 5 .7

26.1

25 .2

2 3 .2

2 5 .4

2 5 .8

2 5 .0

17

18.
Total expenses................................ .................. .
19. Net current earnings before income taxes...........

68.0

6 8 .4

67.6

68 .8

7 2 .6

69.7

66 .9

6 7 .7

67.7

6 8 .6

7 1 .9

6 8 .1

6 7 .6

68 .2

6 8.0

6 8 .7

6 9 .7

6 8 .3

6 8 .8

6 8 .3

70.1

6 9 .0

6 8 .4

6 9 .6

7 0 .9

6 6 .7

18

S£.0

3 1 .6

32.6

31 .2

27.4

3 0 .3

33.1

3 2 .3

32.3

31.4

28.1

3 1 .9

3 2 .4

3 1 .8

32.0

3 1 .3

3 0 .3

31 .7

3 1 .2

3 1 .7

29.9

3 1 .0

3 1 .6

3 0 .4

2 9 .1

3 3 .3

19

2 .2

0 .2

6 .5

20

20. Net recoveries and profits3 (or losses - ) .............
21. Taxes on net income...............................................
22.

Net profits ..........................................................

-

£.6

-

4 .2

-

2.1

-

-

0 .9

-

1.9

-

4 .5

-

2.2

-

3 .6

-

3 .0

-

2 .5

-

4 .9

-

4 .0

-

3 .£

-

5 .0

-

4 .2

-

4 .4

-

5 .0

-

6 .8

-

2.2

-

5 .9

-

5 .1

-

4 .5

-

6 .8

-

7.6

8 .0

6.4

6 .5

5 .3

6 .3

7 .3

6 .8

6.9

7 .1

4 .6

7 .2

7 .8

8 .0

8 .4

8 .5

6 .7

8 .1

8 .7

10.6

8.4

8 .8

7 .7

8 .5

7 .8

10.5

21

£1.8

19.4

£4.0

22 .5

2 2 .3

2 3 .1

23 .9

2 1 .0

23.2

20.7

2 0 .5

2 2 .2

19.7

19.8

20.4

17.8

19.4

19.2

17 .5

14.3

19.3

16.3

18.8

17.4

1 4 .5

16.3

22

RATES O P RETURN O N SECURITIES A N D L O A N S
R e t u r n o n S e c u r it ie s

23. Interest on U. S. Government securities..

1.8

1 .9

2 .0

2 .0

2 .0

2 .0

1.9

2 .0

1.9

1.9

1.9

1 .9

1 .9

1.9

1.8

1 .8

1 .9

1 .8

1 .8

1 .8

1.6

1 .8

1 .8

1.7

1 .8

1 .8

23

24. Interest and dividends on other securities.

£-4

2 .3

2 .7

2 .6

2 .9

2 .6

2 .3

2 .6

£.3

2 .3

2 .7

2 .1

2 .2

2 .4

£.3

2 .2

2 .3

2 .0

2 .3

2 .3

t.4

2 .2

2 .0

2 .2

2 .1

2 .4

24

25. Net recoveries and profits (or losses - )
on total securities4 ....................................

0.1

-

0 .1

t

t

t

t

0

t

0.1

-

0 .1

t

-

0 .1

t

-

0 .1

0 .2

-

0 .1

25

5 .4

6.1

5 .5

4-8

4 .9

4 .6

4 .7

5 .0

5 .2

26

-

0 .1

-

0 .1

-

0 .2

t

-

0 .1

0.1

t

t

t

+

-

0 .1

27

2 7 .7

46.0

2 9 .5

43.3

3 7 .7

4 8 .6

4 4 .9

3 5 .3

2 8 .9

28

14.0

9 .0

11 .0

6 .5

29
30

-

0 .1

-

0 .1

-

0 .1

-

0 .1

-

0 .1

5.1

5 .0

-

0 .1

t

4 2 .1

5 4 .3

-

0 .1

-

0 .1

-

0 .1

-

0 .1

-

0 .1

-

0 .1

-

0 .1

-

0 .1

R etu rn o n L oa n s

26. Earnings on loans 1 ................................

6 .£

27. Net recoveries (or losses - ) on loans5

t

5 .2

6 .6
-

0.1

5 .6
-

5 .4

0 .1

0

4 9 .3

5 .7
-

0 .1

0 .1

-

0 .1

5 .4

6.3

5 .6

5 .5
-

-

0.1

5 .3

5 .5
-

5 .3

0 .1

0

4 4 .9

3 6 .9

5 .1

4 .8

DISTRIBUTION O P ASSETS
P e r c e n t a g e o f T ota l A ssets

28. U. S. Government securities.

43.4

39 .8

40.0

3 7 .8

29. Other securities.....................

8 .3

9 .1

7.9

8 .5

30. Loans ......................................

30.1

3 1 .7

32.6

31. Cash assets ............................
32. Real estate assets...................

17.1

18.3

18.7

0 .9

1 .0

8 .5

4 5 .4

35 .8

2 7 .9

43.£

4 0 .4

5 5 .3

4 5 .7

3 8 .5

14.0

9 .6

7 .2

5 .8

9 .0

9 .4

11.2

10.5

8 .9

7 .1

8 .3

9 .5

13.4

11.3

7 .6

5 .7

8 .6

9 .4

3 3 .0

15.7

2 4 .5

3 5 .5

4 6 .0

29.9

3 1 .0

13.7

2 5 .3

3 5 .2

4 6 .2

£ 8.6

3 0 .4

14.6

2 5 .3

3 5 .2

47 .1

30.3

33 .4

17.5

26.1

3 4 .5

45 .2

19.8

2 0 .3

1 9 .8

2 0 .5

19.3

16.8

18.1

18.8

18.3

17.9

17.7

15.9

16 .8

16 .8

16.6

17.4

1 6 .5

16.2

1 8 .0

1 8 .5

18.2

1 7 .8

17.7

31

0 .8

0 .8

0 .6

0 .6

0 .9

0 .9

1.0

1 .0

0 .8

0 .9

1 .0

1.2

1.0

1 .0

0 .7

1 .0

1 .2

1 .1

1.2

1 .2

1.1

1 .5

1 .0

1 .3

32

8 .5

10.6

10.8

11.4

10.7

10.6

10.7

8 .8

8 .9

8 .0

8 .8

9 .1

9 .6

7.6

7 .5

7 .5

7 .4

7 .5

7 .6

6 .9

6 .8

6 .8

6 .3

6 .9

7 .1

33

£3.6

21 .9

£ 8.0

27.4

40 .7

3 1 .1

24 .2

2 0 .4

24-6

2 3 .6

3 5 .5

2 4 .5

2 0 .4

17.9

£1.9

19.7

2 8 .5

2 0 .5

17.1

14.2

18.0

16 .0

2 1 .9

1 7 .8

14.7

13.4

34

9-4

9 .4

12.1

12.3

13.0

12.2

12.0

12.1

9.7

9 .9

8 .7

9 .7

10.1

10.9

8 .£

8 .2

8 .2

8 .1

8 .2

8 .4

7.5

7 .4

7 .4

6 .8

7 .5

7 .8

35

36. Time to total deposits.....................

46.7

4 4 .6

46.6

44 .4

44 .8

4 1 .9

4 2 .0

4 7 .9

50.6

4 8 .0

4 6 .3

4 8 .7

4 7 .9

4 8 .1

49.2

4 7 .8

5 0 .1

4 6 .3

46 .7

5 0 .2

40.1

3 8 .0

4 0 .4

3 3 .1

3 9 .4

4 0 .5

36

37. Interest on time deposits.................

0 .9

0 .9

1.0

1 .0

0 .8

0 .9

1 .0

1.1

0 .9

0 .9

0 .8

0 .9

1 .0

1.1

0 .9

0 .9

0 .8

0 .9

0 .9

1 .0

0 .9

0 .9

0 .8

0 .9

1 .0

1 .0

37

1.316

1,337

1,251

1,379

1.456

1,259

3.306

3 .3 1 6

3,236

3,372

3 ,3 5 1

3,248

9,789

9 ,7 5 5

9 ,6 6 5

10,464

9 ,1 5 7

9 ,4 9 3

65,430

6 5 ,6 0 3

42,837

73,797

7 3 ,0 4 0

57,852

38

is e

161

159

148

317

324

274

322

336

348

796

788

770

834

739

799

4.824

4 ,7 0 9

3 ,0 5 7

5 ,0 3 3

5 ,2 1 8

4,447

39

CA PITA L A N D DEPOSIT R A T IO S — In p e r c e n t a g e

33. Capital accounts to total assets.................
34. Capital accounts to total assets, less U. S. Gov’ts
and cash assets.........................................................
35. Capital accounts to total deposits.

A V E R A G E R A N K IN G R O U P — in t h o u s a n d s o f d o l l a r s

38. Total deposits .....................................................
39. Capital accounts .................................................
1

in terest ana discount o n loans plus service charges and oth er fees on loans.
o r reporting negligible am ounts w ere excluded in com putin g
not show n w here there were few er than 3 banks in a grou p.

 Banks not reporting this item
2
this
http://fraser.stlouisfed.org/ average, and averages are
Federal Reserve Bank of St. Louis

167

175

3 Transfers from and to valuation reserves, recoveries and profits on securities, loans, and all other
item s, less all losses and charge-offs other than recurring depreciation on ban kin g house and fix­
tures which is in item 17.

4 Transfers from and to valuation reserves included.
5 T ran sfers from and to valuation reserves excluded,
t L ess than 0.05 per cent.

Prepared by
Financial Statistics Division
Research Department

Banks in M anh attan, New York City

N o te :

GROUP V
Deposits
under
S100 million

Balance sheet figures used as a basis fo r the 19S1
ratios are averages of am ounts reported fo r D ecem ­
ber 30, 1950, June 30, 1951, and O cto b e r 10, 1951.

G R O U P VI
Deposits
million
to 11 billiion

G R O U P V II
Deposits
over
$1 billion

$ 10 0

1960
SU M M ARY RA TIO S

Number o f

1950

1951

1950

1951

9

B a n ks.

1951
9

10

10

9

9

h r c c n t a g * o f T o t a l C a p ita l A c c o u n t s

4.8
5 .2

2.3

5 .8

2 .1

S .5

3 .6

2.75

3 .1 2

2.18

2.41

1.90

2 .1 2

0.58

0 .7 8

0.92

1.08

0.80

0 .9 5

O .tl

0 .3 7

0.67

0 .5 5

0.60

0 .4 8

18.7

15.4

5 .2

4 .6

46.0

54 .8

P e r c e n t a g e o f T o ta l A s s e t s

SOURCES A N D D ISPO SITIO N O F E A RN IN G S
P e r c e n t a g e o f T o t a l E a rn in g s
24.1
6 .1

88.2
11.6

10.2

3 .8

18.5

14. Trust department earnings2 (part

of

item

100.0

6 .9

15.7

14.3

10.2

9 .2

42.3

IS. Salaries and wages.................................................

100.0

9 .9

1 2 ) ____

12.7

100.0

40.1

88.7

3 3 .2

83.3

3 2 .4

31.1

22.4

2 0 .5

22.8

2 0 .5

100 .0

8.4
82.2

22.1

20. Net recoveries and profits^ (or losses - ) .............

-

7.2

42.8

2 5 .6
-

5 .8

-

2 .7

42.3

4 5 .3
-

5 .8

-

l.6 r

8 .0

4 5 .2
-

2 .8
19.6

RATES O P RETURN O N SECURITIES A N D L O A N S
R e t u r n o n S e c u r it ie s
1 .6

1-4

1 .5

3 .1

25. Net recoveries and profits (or losses - )
0.3
R etu rn o n L oans
4 .8

-

o .s

-

3 .0

t

0 .2

t

35.8

DISTRIBUTION O F ASSETS
P e r c e n t a g e o f T o ta l A s s e t s

So. 7

2 8 .7

40.0

3 2 .8

7.1

6 .5

5.1

6 .0

8 1.4

37 .4

2S.8

3 4 .6

24.6

2 6 .0

24.8

2 5 .3

*4-6

26 .7

0 .6

0 .8

7.8

7 .7

9 .8

9 .8

8 .7

8 .1

19 .5

28.6

2 4 .0

22.0

CAPITAL A N D DEPOSIT R A T I O S — in p e r c e n t a g e

34. Capital accounts to total assets, less U. S. Gov'ts
11.4

36. Time to total deposits................................................
37. Interest on time deposits..........................................

11.6

0 .8

10.8

10.6

6 .5

1 .0

O.S

0 .4

0.4

A V E R A G E RAN K IN G R O U P — in t h o u s a n d s o f d o lla r s

38. Total deposits ...........................
39. Capital accounts ...............
See footn otes on previous table.




3 5 ,2 4 0

2.8S6

414.974

2 ,9 1 6

46,316

4 7 ,5 8 0

r Revised.

0 .6

[

FE D E R AL RESERVE BANK OF NEW YORK

T o a c c o m p a n y "1
C ircu la r N o . 3832
M a r c h 17, 1952 J

Banking Trends in the Second Federal Reserve District since 1945
slightly below the prewar 1941 proportion of 33.0 per
cent.
Business and personal demand deposits moved irregu­
larly in the central reserve city banks and expanded
sharply in the remaining banks. Time deposits increased
persistently in the city banks; elsewhere the slight
declining tendencies of recent years were reversed in
1951 and the time deposit level reattained the former
high of 1948. U. S. Government demand deposits receded
sharply in 1946, and then remained relatively stable
until the first half of 1951 when they temporarily
increased because of an excess of Treasury collections
over current rearmament and other expenditures; the
rise was reversed later in the year.

The major changes in asset and liability accounts of
member banks in this District since World W ar II are
shown in the two charts below, which provide an histor­
ical supplement to the one-year comparison in the
circular. Except for a temporary rise during the minor
business recession of 1949, Government security holdings
declined steadily during the entire period, and for all
of the District member banks taken together receded
from a peak of 61.3 per cent of total assets in 1945 to
39.8 per cent in 1951. Loans, on the other hand, moved
irregularly higher, with the rate of increase most pro­
nounced during the last half of 1950. The ratio of loans
to total assets reached 31.7 per cent in 1951 which is
more than double the 1945 low of 13.0 per cent and only

BILLIONS

CENTRAL RESERVE
NEW YORK C I T Y

b illio n s

7.5i

2or

ALL OTHER BANKS
I N SECOND DISTRICT

r

U . S . GOVT.
SECURITIES

U.S. GOVT.
SECURITIES

T O T A L LOANS
T O T A L L OANS

RESERVES, CASH,

& BANK BALANCES
RESERVES,CASH, & BANK BALANCES
O T H E R SECURITIES
O T H E R SECURITIES

LIABILITIES

B US I NE S S & PERSONAL
DEMAND D E P O S I T S *

BUSINESS & PERSONAL
DE MA ND D E P O S I T S *

TIME DEPOSITS

U.S. G O V T .
DEMAND
DEPOSITS

IN C LU D ES



DEMAND
DEPOSITS
O F BANKS
U.S.GOVT.
D E MA N D
D E P OS I T S

DEMAND
DEPOSITS
O F BANKS

1946 1947 1948 1949 1950 1951
DEPO SITS

OF STATES

AND PO LITIC AL

S U BD IV ISIO N S .

SOURCE:

CALL’ REPORTS.

At
Federal
o f

R eserve
New

Bank

York
N ew Y ork 45, N. Y.

March 14, 1952

CURRENCY AND COIN EXHIBIT

To the Chief Executive Officers of Member Banks
in the Second Federal Reserve Districts

We now have available for loan to member banks a collection of repre­
sentative United States currency and coin.

The exhibit consists of eight frames

of currency and three frames of coin; it contains specimens of Federal Reserve
notes of all denominations, including the $10,000 one.

Features of the collec­

tion include pairs of counterfeit and genuine notes, and specimens of currency
in use from Colonial times to the present.

A listing of the individual frames

appears on the reverse side of this letter.
Although preference in scheduling loan dates will generally be given
to an earlier request, we will try to give special consideration to member banks
wishing to use the exhibit as part of a program to mark a special occasion, such
as an anniversary or the opening of new or improved banking quarters.
have all or part of the collection for up to a week at a time.

You may

Tfyere is no

charge for the exhibit, and we will deliver and p i c k it up.
Requests for the exhibit, or for additional information, should be
directed to the Bank Relations Department.




ALLAN SPROUL,
President.

CURRENCY E X H IB IT

FRAME NO.
1.

U. S. currency (old series) $1 Denomination

2.

U. S. currency (old series) $2 Denomination

3-

U. S. currency (old series) $5 Denomination

4.

U. S. currency (old series) $10 Denomination

5-

U. S. currency (new series) $1 to $10 notes inclusive

6.

Obsolete and colonial notes
U. S. fractional currency
Confederate States currency

7.

Counterfeit and raised notes

8.

Federal Reserve notes (Series 1934) $5 to $10,000
denominations

COIN EXHIBIT
9.

Minting operations -- stages of production of 25^ piece
from raw material to finished product

10.

U. S. minor coins, U. S. gold coins and colonial coins

11.

U. S. silver coins




Each of the frames measures approximately 36 X 24 inches.
Display easels are also available.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102