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F e d e r a l R e s e r v e Ba n k

Dallas, Texas, August 14, 1956


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


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