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F e d e r a l R e s e r v e Ba n k O F DALLAS Dallas, Texas, August 14, 1956 C O N D IT IO N OF MEMBER BANKS, JUNE 30,1956 ELEVENTH FEDERAL RESERVE DISTRICT To the Member Banks in the Eleventh Federal Reserve District: Banking totals as of June 30, 1956, reflect the continued growth of member banks in the Eleventh Federal Reserve District. Assets of member banks on that date totaled $9,764,962,000 — a midyear record. Loan expansion accounted for the largest part of asset growth between June 30, 1955, and June 30, 1956, as the accommodation of strong credit demands generated by a high level of economic activity increased net loans of member banks to $3,876,946,000. Cash accounts also increased, but investments were reduced as banks diverted funds into loan accounts. Paralleling the asset growth, deposits at member banks rose to $8,989,270,000 on June 30, 1956, and capital accounts were increased to $714,483,000. The volume of net loans on June 30 reflects an increase of $305,340,000 over the year-earlier level and an increase of $24,688,000 since April 10, 1956. Although the year-to-year expansion featured increases in almost every type of loan, the bulk of the loan expansion occurred in the commercial and industrial loan category. These loans rose $224,521,000 during the 12-month period, thus accounting for almost three-fourths of the total increase in net loans. Only loans to banks, single-payment loans to individuals, and loans directly guaranteed by the Commodity Credit Cor poration registered declines from a year ago. Investment liquidation during the 12 months ended June 30 was confined to United States Government obligations, holdings of which declined $160,079,000. Approximately two-thirds of this decline, or $107,182,000, occurred between April 10, 1956, and June 30, 1956. Holdings of non-Government securities increased $36,748,000 during the 12-month period, limiting the over-all reduction in investments to $123,331,000. Deposit expansion during the 12 months ended June 30 amounted to $254,772,000. Time and demand deposit balances of individuals, partnerships, and corporations rose $113,745,000, while other types of deposits showed smaller gains. Between April 10 and June 30, deposits increased $152,603,000, with interbank balances and Government deposits registering the largest gains. Yours very truly, Watrous H. Irons President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)