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Fe d e r a l reserve Ba n k OF DALLAS Dallas, Texas, July 25,1946 CONDITION OF MEMBER BANKS, JUNE 29,1946 To the Member Banks of the Eleventh Federal Reserve District: There is presented on the opposite page a statement of the condition of all member banks in the Eleventh Federal Reserve District as of June 29, 1946, with comparative figures for December 31, 1945 and June 30, 1945. This statement reveals the substantial changes in the principal items of assets and liabilities of member banks in this district which occurred during the first six months of 1946. In contrast with the sharp upward trend that had been in progress since 1939, the gross deposits of member banks showed a decline of $371,000,000 during the first half of 1946. Nevertheless, total deposits of $5,368,000,000 on June 29 were still $434,000,000 greater than on the corresponding date of 1945. The marked decline since the beginning of this year has resulted from the large decreases in Government and interbank deposits and has been associated with the program of the United States Treasury to utilize a sub stantial amount of its large war loan deposits at depositary banks to retire a portion of the outstanding Federal debt. The sharp decline in these classes of deposits was only partially counterbalanced by the expansion of demand and time deposits of individuals, partnerships, and corporations. Total investments of member banks declined by only $83,000,000 during the six months, partly because banks replaced through purchases in the open market a portion of their Government securities that had been redeemed. Moreover, the banks were able to expand their holdings of other securities in view of the larger market supply brought about by the revival of corporate, state, and municipal financing. The loans of member banks increased by $10,000,000 during the six months and reached the highest level of record. The size of the net expansion was relatively small because the substantial increases in commercial, industrial, and agricultural loans, in real estate loans and in miscellaneous loans were largely counterbalanced by the sharp decline in loans made during the Victory Loan Drive for the purpose of purchasing and carrying Government securities. In view of the much smaller contraction in loans and investments than in deposits, cash assets declined by $168,000,000 during the six months and on June 29 constituted a slightly smaller percentage of total assets than at the beginning of the year. On June 29, 1946, the total capital accounts of member banks in the district aggre gated $284,000,000, representing an increase of $30,000,000 during the six-month period. This increase was about as large as the total expansion during 1945 and was larger than that during any preceding year^since the establishment of the Federal Reserve System. This growth in capital accounts during the six months reflected not only the retention for capital purposes of a large share of net profits but also the sale by many member banks of substantial amounts of new capital stock to the public. Yours very truly, R. R. GILBERT, President. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) COMPARATIVE STATEMENT OF CONDITION OF MEMBER BANKS IN THE ELEVENTH FEDERAL RESERVE DISTRICT June 29, 1946 (Preliminary) ITEM December 31, 1945 (Revised) Member banks in Eleventh District____ 589 Loans, including overdrafts___________ 1.148.981.000 U. S. Government obligations direct and guaranteed_______________________ 2.590.970.000 Obligations of States and political sub divisions__________________________ 145.255.000 44.620.000 Other securities— :____________________ TO TAL LO AN S A N D IN V E ST M E N TS 3.929.826.000 Individual—Demand deposits_________ 3.413.345.000 447.442.000 Individual—Time deposits____________ Deposits of U. S. Government, including 410.900.000 postal savings__________ __________ _ Deposits of States and political sub 308.940.000 d ivision s-....... ....... ............. ........... . 737.767.000 Deposits of banks................. ................. . 49.365.000 Other deposits______________ ___ _____ TO TAL DEPOSITS______________________ 5.367.759.000 284.096.000 TO TAL CAPITAL ACCOUNTS Cash and balances due from banks___ 1.783.148.000 — o — Borrowings from Federal Reserve Bank — o — All other borrowings_____________ ___ Ratio of loans to total loans and invest ments......................... .............. ........ . 29.2% Ratio of cash and exchange to total deposits.—.......................................... 33.2% June 30, 1945 (Revised) 585 1.138.936.000 586 921.048.000 2.702.604.000 2.386.686.000 132.142.000 29,107,000 4.002.789.000 3.303.687.000 414.298.000 112.633.000 24.046.000 3.444.413.000 2.906.973.000 369.217.000 767.306.000 659.191.000 281.304.000 870.818.000 101.051.000 5.738.464.000 253.741.000 1.951.263.000 223.902.000 735.511.000 39.161.000 4.933.955.000 245.669.000 1.698.416.000 75,000 150,000 — o— 28.5% 26.7% 34.0% 34.4% PRINCIPAL ASSET AND LIABILITY ITEMS OF ALL MEMBER BANKS IN THE ELEVENTH FEDERAL RESERVE DISTRICT AS OF JUNE 30 OF EACH YEAR 1939 TO 1946, INCLUSIVE (Thousands of dollars) June 30, Total Deposits Total Loans Total Investments Total Loans and Investments Total U. S. Gov. Secs. Total Capital Accounts 1939 1940 1941 1942 1943 1944 1945 1946 1,436,977 1,571,489 1,813,657 2,094,757 3,115,118 3,866,006 4,933,955 5,367,759 474,688 489,655 569,475 591,477 544,657 741,970 921,048 1,148,981 419,029 418,587 482,994 656,032 1,488,739 1,933,527 2,523,365 2,780,845 893,717 908,242 1,052,469 1,247,509 2,033,396 2,675,497 3,444,413 3,929,826 279,998 275,819 332,020 500,034 1,346,185 1,813,127 2,386,686 2,590,970 166,351 173,513 181,719 188,288 195,584 215,327 245,669 284,096