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F e d e r a l R e s e r v e , b a n k O F DALLAS Dallas, Texas, November 22, 1950 CONDITION OF MEMBER BANKS, OCTOBER 4, 1950 ELEVENTH FEDERAL RESERVE DISTRICT To the Member Banks of the Eleventh Federal Reserve District: A consolidated condition statement of all member banks in the Eleventh Federal Reserve Dis trict as of October 4, 1950, with comparative figures for November 1, 1949, and June 30, 1950, is presented on the reverse of this letter. Most notable increases in principal assets occurred with respect to loans and demand deposits of individuals, partnerships, and corporations; in contrast, holdings of United States Government securities declined moderately. Total loans of all member banks in the District amounted to $2,219,337,000 on October 4, 1950, reflecting an increase of $335,141,000 from November 1, 1949. Loans for commercial, industrial, and agricultural purposes, loans on real estate, and loans to finance consumer purchasing showed the most notable growth, with approximately 47 percent of the total increase reported between June 30 and October 4. The strong demand for bank credit, partly reflecting inflationary develop ments, was supported by very high business and industrial activity and unusually large volumes of construction and consumer purchasing. The increase in loans between November 1, 1949, and October 4, 1950, raised total loans of all member banks in this District to a record high. This substantial expansion of bank credit has been a matter of increasing concern to bank supervisory authorities and to the officers and directors of this bank. You will recall that on August 4, 1950, a joint announcement by national and state super visors of banks and other lending institutions emphasized the need to restrain credit expansion and urged banks and other financial institutions to decline to make loans to business or consumers which might be used for speculative purposes or otherwise interfere with defense requirements. The per sistent increase that has occurred in bank loans to date warrants a re-emphasis of that request. Investments in United States Government securities declined $34,625,000 between November 1, 1949, and October 4, 1950, although investments in obligations of states and political subdivisions and other securities increased during the period. As a consequence, total investments of the member banks amounted to $2,559,624,000 on October 4,1950, as compared with $2,550,004,000 on November 1, 1949. Loan expansion and the maintenance of total investments at a high level provided the basis for the increase of $355,454,000 in total deposits between November 1, 1949, and October 4, 1950. GrowTh in demand deposits of individuals, partnerships, and corporations was the principal factor con tributing to the increase, as this category of deposits rose by $326,494,000. Time deposits of indi viduals, in common with other forms of personal savings, declined between June 30 and October 4 as consumer expenditures reflected the upward surge of anticipatory buying. Member banks in the District reported total capital accounts of $422,279,000 on October 4, 1950, an increase of $44,169,000 from November 1, 1949, and $18,967,000 from June 30, 1950. ’These increases represent the strengthening of capital positions through the sale of new stock and the retention of earnings and, in addition, the admission of seven banks to membership in the System. 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 October 4, June 30, November 1, Item 1950P 1950r 1949r 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 TOTAL ASSETS_____________________ 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 BankAll other borrowings__________________ Ratio of loans to total loans and invest ments______________________________ Ratio of cash and exchange to total deposits____________________________ 630 2.219.337.000 626 2,062,161,000 623 1.884.196.000 2.200.547.000 2.274.896.000 2.235.172.000 285.158.000 73.919.000 4.778.961.000 6.847.511.000 4.386.484.000 538.512.000 267.797.000 61.344.000 4.666.198.000 6.825.546.000 4.272.620.000 548.934.000 262.144.000 52.688.000 4.434.200.000 6.432.938.000 4.059.990.000 525.348.000 83.048.000 101.143.000 71.643.000 545.814.000 768.001.000 65.599.000 6.387.458.000 422.279.000 1.968.819.000 515,000 584.295.000 817.307.000 68.890.000 6.393.189.000 403.312.000 2.068.738.000 566.673.000 756.580.000 51.770.000 6.032.004.000 378.110.000 1.915.976.000 401.000 105.000 — 100,000 o — — o — 46.4% 44.2% 42.5% 30.8% 32.4% 31.8% p— Preliminary, r— Revised. 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, 1949r October 4 , 1950p r— Revised, p— Preliminary. Total Investments Total Loans and Investments Total Capital Accounts Total Deposits Total Loans 1,518,754 476,136 419,638 895,774 275,784 168,364 1,872,673 617,892 494,460 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 6,032,004 1,884,196 2,550,004 4,434,200 2,235,172 378,110 6,378,458 2,219,337 2,559,624 4,778,961 2,200,547 422,279 Total U. S. Gov. Secs.
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