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Federal reserve Bank OF DALLAS Dallas, Texas, December 2, 1949 CONDITION OF MEMBER BANKS, NOVEMBER 1,1949 To Member Banks of the Eleventh Federal Reserve District: A statement of the condition of member banks in the Eleventh Federal Reserve District as of November 1, 1949, with comparative figures for June 30, 1949, and December 31, 1948, is presented on the reverse of this letter. During the latest reporting period from June 30, 1949, to November 1, 1949, increases were reported by member banks for practically all of the principal accounts. Minor declines occurred in “ other” deposits and borrowings from the Federal Reserve Bank, while a moderate decline was reported in holdings of “ other” securities. Total loans and investments, total deposits, total capital accounts, and cash and balances due from banks showed significant increases. The increase in total loans during the latest reporting period, amounting to $146,270,000, is largely a reflection of the trend in loans for commercial, industrial, and agricultural purposes, which rose steadily from mid-August to November 1, 1949. Seasonal increases at Reserve city banks in the demand for agricultural loans in connection with the movement of crops, as well as seasonal increases in business loans, exerted an upward force during the last half of the period. However, the upward trend was also influenced by nonseasonal factors. Sharp reductions in inventories etfected by businesses earlier in the year in response to a less favorable outlook had reduced stocks of some types of goods to an undesirably low level by midsummer. With business sentiment and expecta tions somewhat improved toward the end of the summer, the demand for business loans to replenish stocks showed an increase. Along with the considerable increase in loans, banks were able to increase by an even greater amount their holdings of United States Government securities. From June 30, 1949, to November 1, 1949, holdings of United States Government obligations showed an increase of $166,932,000, the major portion of which was represented by short-term issues. Decreases in reserve requirements effected during August put banks in a position to increase their earnings by investing excess reserves in short-term Government obligations. At the same time, investments in obligations of states and political subdivisions increased by $12,229,000, while holdings of “ other” securities decreased by $4,301,000. The net increase of $391,777,000 in total deposits of member banks in the District during the 4 months ended November 1, 1949, reflects an increase in all classes of deposits, with the exception of a $46,000 decrease in “ other” deposits. An increase of $217,676,000 in demand deposits of indi viduals, partnerships, and corporations, together with an increase of $140,694,000 in deposits of banks, accounted for the major portion of the gain during the period. Smaller increases in United States Government deposits and deposits of states and political subdivisions also were reported. Seasonal strength, aided by other stimulative forces in business activity, checked and in some instances reversed the downward readjustment which prevailed during the first 8 months of the year, thus tending to increase deposits. Capital accounts, including capital stock, surplus, undivided profits, and reserves, increased $15,734,000 between June 30, 1949, and November 1, 1949, and amounted to $378,076,000 on the latter date. These accounts showed a balance of $342,390,000 on December 31, 1948. 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 ELEVENTH FEDERAL RESERVE DISTRICT Item November 1, 1949P June 30, 1949r December 31, 1948r Member banks in Eleventh District....... Loans, including overdrafts................... U. S. Government obligations, direct and guaranteed............................................. Obligations of states and political sub divisions-............................................... Other securities...................................... . TOTAL LOANS AND INVESTMENTS Individual— Demand deposits................. Individual—Time deposits....................... Deposits of U. S. Government, including postal savings....... ................................. Deposits of states and political sub divisions................................................. Deposits of banks......... ........................... Other deposits.......................................... TOTAL DEPOSITS................................... TOTAL CAPITAL ACCOUNTS........ Cash and balances due from banks......... Borrowings from Federal Reserve Bank All other borrowings................................. Ratio of loans to total loans and invest ments......... ...... ............................ —...... Ratio of cash and exchange to total deposits.---.............................................. 623 1,884,298,000 621 1,738,028,000 618 1,835,718,000 2,235,242,000 2,068,310,000 2,122,615,000 260,604,000 54,158,000 4,434,302,000 4,060,854,000 525,410,000 248,375,000 58,459,000 4,113,172,000 3,843,178,000 525,067,000 249,464,000 61,385,000 4,269,182,000 4,055,431,000 506,314,000 71,641,000 60,287,000 71,243,000 565,424,000 756,574,000 51,792,000 6,031,695,000 378,076,000 1,915,448,000 401,000 102,000 543,668,000 615,880,000 51,838,000 5,639,918,000 362,342,000 1,834,648,000 408,000 50,000 562,890,000 810,089,000 132,853,000 6,138,820,000 342,390,000 2,164,652,000 — o— — 0— 42.5% 42.3% 43.0% 31.8% 32.5% 35.3% r—Revised, p—Preliminary. PRINCIPAL ASSET AND LIABILITY ITEMS OF MEMBER BANKS AS OF SELECTED CALL DATES ELEVENTH FEDERAL RESERVE DISTRICT (In thousands of dollars) Date October 2, 1939 September 24, 1941 October 18, 1943 September 30, 1946 October 6 1947 November 1, 19.49p p—Preliminary. Total Loans Total and Investments Investments Total U. S. Gov. Secs. Total Capital Accounts 419,638 895,774 275,784 168,364 617,892 494,460 1,112,352 336,806 185,470 3,544,018 636,216 1,753,077 2,389,293 1,613,767 200,876 5,349,713 1,215,435 2,704,627 3,920,062 2,493,675 292,813 5,545,858 1,427,525 2,526,407 3,953,932 2,257,746 320,737 6,031,695 1,884,298 2,550,004 4,434,302 2,235,242 378,076 Total Deposits Total Loans 1,518,754 476,136 1,872,673
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