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FEDERAL RESERVE BANK OF JANUARY SAN F R A N C ISC O 1948 CURRENT BAN KIN G AND CREDIT DEVELOPMENTS uppo r t of the Government securities market by the SFederal Reserve System gives the commercial banks ready access to additional reserves. To exert some re straint upon the creation of reserves by this process, Re serve System support prices for longer-term, fully-taxable Treasury bonds were lowered on December 24. Another restrictive step was taken in mid-January when the discount rate of each Reserve Bank was raised from 1 percent to 1 percent. Support prices lowered The reduction in Government bond prices was abrupt, but it does not reflect any weakening of the general policy of market support of the percent rate on long-term, fully-taxable Governments. The lower support prices are being maintained aggressively by System purchases of whatever amounts may be necessary to clear the market. Long-term Government bonds, which had been at sub stantial premiums, began to decline significantly in price in October in response to the Treasury offering of a 2 ^ percent nonmarketable issue of 1965 which was on tap for ten days, the continued demand of private borrow ers for funds, and the increasing attention, both public and private, given to possible credit restriction measures. The rise in rates on short-term Governments, which had begun in July, also was a contributing factor. The Re serve System and the Treasury had been sellers of bonds in earlier months, but support purchases were resumed in mid-November. The extent of the decline in bond prices in the last four to five months, with particular ref erence to recent developments, is indicated in the accom panying table. It may be noted that prices of bonds fully eligible for bank purchase rose again between Christmas and January 15. For a few days after December 24 it was necessary for the Reserve System to purchase Treasury bonds on a T able 1— P rices and Y iel d s of S elected T r e a s u r y B on d s (Fully taxable) ^ -Y ield s2—N -------------------- Prices1---------------------- \-------Aug. Jan. Aug. 29 Dec. 23 Dec. 26 Jan.15 29 15 1947 1947 1947 1948 1947 1948 1 y2% Dec. 1950 ............ 2 ^ 2 % M ar. 1952-54 ____ Sept. 1956-59 . . . 2V a % 2V a % June 19 59-623 . . . 2 Y z % Sept. 1967-72 . . . 2 Y z % Dec. 19 67-723 . . . 101.0 105.3 105.20 102.19 106.19 102.31 100.16 103.22 103.12 1 00.14 103.8 101.1 100.10 103.5 101.9 100.1 101.1 100.9 1 Decimals are 32nds. 2 To call, in percent. 3 Issue restricted for commercial bank purchase. 100.18 103.9 101.10 100.1 101.3 100.9 1.19 1.34 1.58 2.00 2.10 2.3 2 1.29 1.67 2.08 2.24 2.42 2.48 substantial scale, but thereafter offerings declined con siderably. Despite the increase in Treasury bonds held by the System, total Government security holdings of the System were no higher in mid-January than they had been on December 24 or November 12. T able 2— G o v e r n m e n t S e c u r it ie s H eld b y F ederal R eserve B a n k s , N o v e m b er 1947— J a n u a r y 1948 (millions of dollars) Bills .............................................. .......... Certificates and n o t e s .......... .......... ,. , N ov. 12 1947 13,234 8,079 738 Dec. 24 1947 Dec. 31 1947 1 1 ,7 8 7 8,404 1,709 11,433 8,273 2,852 J a n .14 1948 10,781 7,735 3,380 22,052 21,900 22,559 21,896 1 Purchases of bonds for Treasury investment accounts were also made in November and the first three weeks of December. It is probable that additional sales of Government se curities will be made to the Reserve System. Tax re ceipts of the Federal Government will substantially ex ceed its expenditures in the coming months. If, as is ex pected, the surplus is used principally to retire debt held by the Reserve System, the reserves lost when tax re ceipts are deposited to the Treasurer’s account in the Reserve System will not be returned to the commercial banks. Banks will replace reserves, and both bank and non-bank lenders may seek to meet the demands of pri vate borrowers by selling Government securities. Total Reserve System credit, however, probably will not ex pand correspondingly because of retirement of Systemheld securities. The pressure that the Treasury debt re tirement program will exert on reserves may have a con siderable restraining effect upon credit expansion over the next few months. Discount rates increased Discount rates of the Federal Reserve Banks were in creased from 1 percent to 1 ^ percent in mid-January. While a 1 percent discount rate had been formally in ex istence for some years, the effective rate during the war was percent, the rate at which loans were made on Governments maturing in less than one year. These pref erential rates were eliminated in April and May 1946, so that the discount rates, in effect, have been raised from Yz percent to 1 Ya percent since that time. Although discounts and advances to member banks are not large in absolute amount, they have increased consid erably since mid-October. The increase in the discount rate can not be said to have, by itself, a substantial effect 2 FEDERAL RESERVE B A N K OF S A N FRA N C ISCO upon the ability and willingness of the banks to obtain additional reserves, but it is consistent wTith the increases that are occurring in short-term money rates, and rein forces the other restrictive actions being taken in the monetary area. T Twelfth District ba nk loans a nd investments B i l l s .................................................. Notes and Certificates of Indebtedness ........................... The total amount of Government securities held by Twelfth District banks has changed little in recent weeks. In the wreek ending December 31, holdings did decline about $64 million, but in the following two weeks they were restored to almost their mid-November level. Hold ings of Treasury bonds were steadily but moderately re duced, however, from a recent high of $4,316 million on November 19 to $4,191 million at the end of the year. After some hesitation in November, loans of weekly reporting banks rose very sharply in the first three weeks of December, declined slightly in the two weeks ending January 7, and increased again in the following week to an all-time high. The course of District bank loans dur ing the first part of 1948 should be interpreted in the light of a tendency for some seasonal decline in loans during able M January 1948 3— G o v e r n m e n t S e c u r it ie s H em ber U B a n k s , N o v e m b er 1947 n it e d S tates and T eld b y and welfth W eekly R e p o r tin g J a n u a r y 1948— D is t r ic t (millions of dollars) Twelfth r- United States f------District------\ N ov. 12 1947 Jan. 14 1948 2,060 N ov. 12 Jan.14 1947 1948 115 180 .. 6,025 31,002 6,135 29,392 1,618 4,299 1,643 4,195 ,, 37,834 37,587 6,032 6,018 the first four months or so, relative to the latter part of the year. Twelfth District banks have been able to increase loans in recent months without shifting out of Governments because of the flow of reserve funds into the District. In the coming months, the expected drain of Treasury operations upon reserves is likely to force District banks either to borrow or to convert other assets to maintain their reserve positions. Since extensive borrowing is un likely, District banks may reduce their security holdings rather substantially during the first half of the year. These reductions will be greater if loan expansion continues. INTEREST RATES O N COMMERCIAL BANK LOANS TO FARMERS1 h e s u r v e y of agricultural loans outstanding in midand production credit associations. The latter are quasi 1947 revealed two principal differences in structurecooperative, quasi-governmental organizations which ob between the interest rates charged by commercial banks tain most of their funds from the Federal Intermediate for farm mortgage loans and those charged for non-real Credit banks. The farm mortgage market is more highly estate agricultural loans. First, the pattern of rates for organized, broader in geographical scope, and has a farm mortgage loans has greater uniformity than that for greater variety of suppliers of funds than the market for farm production loans, and secondly, the level of rates is farm production loans. These characteristics arise from generally lower for farm mortgage than for farm produc the fact that farm mortgage loans employ an essentially tion loans. These differences prevail in both the Twelfth uniform type of security and fairly well standardized terms of contract. Mortgage loans are granted, and also District and the country as a whole. The greatest variation in rates is associated with dif purchased, with more reference to the value of the real ferences in size of loan. In the Twelfth District, the aver estate pledged than to the creditworthiness of the bor age rate of interest on farm mortgage loans varied from rower. Farm production loans, on the other hand, tend 6.5 percent on loans of under $1,000 to 4.6 percent on to be individual in character and hence are not easily loans of $25,000 or over, wThile the average rates on farm standardized. They are made primarily on the basis of the production loans in the corresponding size groups were creditworthiness of the borrower rather than on the type 7.3 and 4.3 percent respectively. The average rate for all of security pledged, and are more dependent upon indi farm mortgage loans was 5 percent compared with 5.5 vidual bargaining between the lender and the borrower. Also, they are typically smaller in amount. The larger, percent for all farm production loans. more competitive market for farm mortgage loans results in lower average interest rates and in greater uniformity Comparison of rates on farm mortgage in the pattern of rates charged on them than on produc and farm production loans tion loans. The principal sources of funds for farm mortgage loans Differences in risk also contribute to differences in in are insurance companies, mutual savings banks, commer cial banks, individuals, and agencies of the Federal Farm terest rates charged for the two types of loans. Lenders Loan System. The chief suppliers of farm production generally consider that less risk is attached to a loan se loans are the commercial banks, which hold about two- cured by real estate than by many other types of collateral, thirds of the outstanding farm production loans (com and hence are willing to charge less for farm real estate pared with only one-eighth of the farm mortgage loans), loans. This influence also produces more uniform interest rates for farm mortgage loans. 1 This is the last in a series of three articles based upon a survey of agricul tural loans of insured banks conducted by the Federal Reserve System with Table 1 reveals clearly the general differences already the cooperation of the Federal Deposit Insurance Corporation. The first mentioned. For farm production loans, 6 percent was the article, on non-real estate farm loans, and the. second one, on farm mortgage loans, appeared in the November and December 1947 issues of thé Monthly most common rate, and the next most frequent rate was -Review. ' T M O N T H L Y R E V IE W January 1948 T a b le 1— P e r c e n t a g e D i s t r i b u t i o n o f F a r m L o a n s o f I n s u r e d Regional Variations in Interest Rates C o m m e r c ia l B a n k s O u t s t a n d i n g i n M id -1 9 4 7 , Another factor which exercises a general influence upon interest rates is geographic location. Because the market for farm mortgages is more highly organized than the one for farm production loans, regional variations in interest rates were more pronounced for farm production loans. For both types of loans, regional differences in rates were greater for small than for large loans. by I n t e r e s t R a t e — T w e l f t h D is tr ic t1 Farm production Farm mortgage f------------loans------------N -------------- r--------------loans----------- \ Interest rate Number Amount Number Amount 3.9 and u n d e r ........................ 1 14 — — 4.0 1 3 11 20 7 24 2 33 4 42 — 38 — 7 49 — 23 — 16 1 27 7 6 2 8 2 1 — 4 — 2 — 1 — 100 100 100 100 4.1-4.9 5.0 5.1-5.9 6.0 1 8 1 36 7.0 7.1-7.9 8.0 8.1 and over3 ........................ Total .................................... 6.1-6.9 1 2 1 Estimated on basis of banks covered by the surveys. 2 Less than 0.5 percent. 3 The interest rates for discounted instalment loans used in this tabulation were effective rates, which are roughly double the quoted rates. Virtually all of the loans with rates of 8.1 percent and over were of this type. N o t e : Detailed figures may not add to totals because of rounding. 8 p e r ce n t in te r m s o f n u m b e r o f lo a n s , o r 5 p erce n t in te r m s o f d o lla r a m o u n t. F o r fa r m real e state lo a n s, 5 p e r c e n t w a s th e m o s t c o m m o n ra te, a n d 6 p erce n t w a s n e x t in o r d e r o f fr e q u e n c y . N o n -r e a l esta te lo a n s w e r e m a d e at b o th h ig h e r a n d lo w e r ra tes th a n fa r m m o r tg a g e lo a n s, a n d w e r e a lso less c o n c e n tr a te d w ith in a n a r r o w ra n g e o f ra te s. Size Production loan rates Rates on farm production loans in the Twelfth District were above the national average for smaller loans, but below it for loans of $2,500 and over (Table 3). Since 73 percent of the dollar amount of all Twelfth District farm production loans fell in the size category of $2,500 and over, compared with only 44 percent for the country as a whole, the average rate of 5.5 percent on all farm production loans in the District was below that of 6.1 percent for the United States. Bank rates on production loans to farmers were significantly higher in the Atlanta and Dallas Federal Reserve Districts than those charged in other districts for loans of like size. T a b le 3— A of of loan a nd interest rates by A s p r e v io u s ly in d ica te d , s iz e o f lo a n is th e p rin c ip a l verage I n t e r e st R a t e s T S iz e w elfth of L oan ra te o f in te r e st o n fa r m m o r tg a g e lo a n s v a rie d f r o m 6 .5 p e r ce n t o n lo a n s o f u n d e r $ 1 ,0 0 0 to 4 .6 p erce n t o n lo a n s o f $ 2 5 ,0 0 0 a n d o v e r ( T a b l e 2 ) . T h e a v e r a g e ra tes o n fa r m p r o d u c tio n lo a n s in th e c o r r e s p o n d in g size g r o u p s w e r e 7 .3 a n d 4 .3 p e r ce n t r e s p e c tiv e ly . T h e v a ria tio n o f in terest ra te s w ith size o f lo a n is th e r e su lt o f se v e ra l fa c to r s. B a n k s in cu r ce rta in m in im u m c o s ts in e x te n d in g c r e d it w h ic h a r e re la tiv e ly c o n sta n t r e g a r d le s s o f th e siz e o f lo a n . C o n s e q u e n tly th e y u su a lly c h a r g e a h ig h e r rate o n sm a ll th a n o n la r g e lo a n s in o r d e r to m e e t th e se c o sts. G e n e r a lly s p e a k in g , th e la r g e r lo a n s a r e g r a n te d to b o r r o w e r s o f la r g e n e t w o r t h w h o are lik e ly to m a in ta in siz a b le b a n k d e p o s its , at le a st d u r in g c e rta in p e r io d s o f th e y e a r , a n d w h o m a y a ls o crea te fo r th e b a n k a sig n ific a n t a m o u n t o f o th e r b u sin e ss. T able 2— A verage I nterest R ates on F a r m L o an s of I nsured C o m m ercial B a n k s O u t st a n d in g in M id -1947, b y S ize of L o a n — T w e l f t h D istrict 1 /'—Farm production l o a n s r Farm mortgage loans Average PercentageAverage Percentage interest r~ distribution—> interest ^-distrib’n-> Size of loan2 rate N o . Amount rate N o. Amount Under $1,000 ................... 7.3 57 10 6.5 3 3 $1,000-1,499 ...................... 6.6 15 7 6.0 6 1 $1,500-2,499 ................... 6.3 11 9 5.7 16 5 $2,500-4,999 .................... 6.1 9 13 5.4 33 19 $5,000-9,999 ................... 5.7 6 13 5.1 27 29 5.3 2 14 4.9 12 27 $10,000-24,999 ............... $25,000 and over .......... 4.3 1 33 4.6 3 19 All loans ...................... 5.5 100 100 5.0 100 100 1 Estimated on basis of banks covered by the surveys. 2 The classification by size is based upon outstanding amount of loan for farm production loans and upon original amount of loan for farm mortgage loans. 2 Less than 0.5 percent. N o te : Detailed figures may not add to totals because of rounding. F a r m P r o duction L o a n s by N A et W or t h of reas, a n d U in M id -1947, B orrower — n it e d States1 (Percent per annum) InterOregon and mountain Washington states United States Twelfth District Calif. 6.1 5.5 5.0 5.9 6.3 Size of loan outstanding 7.7 Under $250 ................. $250-499 ........................ 7.2 $500-999 ........................ 6.8 $1,000-1,499 ................. } 6.3 $1,500-2,499 ................. $2,500 and o v e r .......... 5.4 2 $2,500-4,999 ............ 2 $5,000-9,999 ............ 2 $10,000-24,999 ____ 2 $25,000 and o v e r .. 8.2 7.4 7.1 6.6 6.3 5.1 6.1 5.7 5.3 4.3 8.4 7.3 7.1 6.4 6.2 4.7 5.9 5.4 5.2 4.0 8.2 7.2 6.8 6.4 6.0 5.3 5.9 5.2 5.1 3 8.1 7.9 7.5 6.9 6.8 5.9 6.8 6.6 5.5 5.3 N et worth of borrower Under $2,000 ............... $2,000-9,999 ................. $10,000-24,999 ............ $25,000-99,999 ............ $ 1 0 0 ,0 0 0 and o v e r ... 7.7 7.1 6.5 5.8 4.5 6.4 6.7 6.0 5.6 4.2 7.6 6.8 6.6 5.9 4.4 8.8 7.7 7.1 6.1 5.4 d iv id u a l fa r m p ro d u c tio n a n d fa r m m o r tg a g e lo a n s— th e T w e l f t h D is t r ic t, th e a v e r a g e and D is t r ic t , fa c to r w h ic h a ffe c ts th e ra te o f in te re st c h a rg e d o n in la r g e r th e lo a n , th e lo w e r is th e rate o f in terest. I n th e on I n su r e d C o m m e r c ia l B a n k s O u t s t a n d i n g All loans ........................... 7.5 6.7 6.3 5.6 4.6 1 Estimated on basis of banks covered by the survey. 2 N ot available. 3 Insufficient number of loans to permit computation of an average rate. Regional variations in interest rates on farm produc tion loans appear to exist also within the Twelfth District. Rates charged in the Intermountain States, that is, Ari zona, Idaho, Nevada, and Utah, were generally higher for each size of loan than the District average (Table 3). Idaho, in particular, had a higher level of rates than other states in the District. There was no marked variation in average interest rates for loans of like size among the three Pacific Coast states. However, the average rate of interest on all farm production loans was 5.9 percent in Oregon and Washington compared with 5.0 percent for California. This difference is due to the fact that more of the loans in California were large in size and hence had lower rates of interest.1 1 These intra-District comparisons should be regarded as merely indicative of tendencies rather than as indisputable facts. The agricultural loan surveys were designed to reveal the characteristics^ of such loans for the District as a whole, but not necessarily for each individual state within the District. 4 January 1948 FEDERAL RESERVE B A N K OF S A N FRA N C ISCO Farm mortgage rates Size of bank Regional variations in interest rates on farm mortgages were much smaller than on farm production loans. For farm production loans of under $250, for example, aver age interest rates ranged from a low of less than 6 percent in the Boston and New York Federal Reserve Districts to nearly 11 percent in the Dallas District. The corre sponding range for small farm mortgage loans (under $1,000) was from about 5.5 percent for the Boston and New York Districts to 7 percent for the Dallas District. Farm mortgage rates in the Twelfth District were slightly higher for each size of loan than for the country as a whole (Table 4 ). Regional variations in farm mortgage rates within the Twelfth District were small. In contrast to the situation with respect to rates on farm production loans, farm mortgage rates in the Intermountain States were below the average for the District for most sizes of loans. Rates on loans of $5,000 and over were significantly lower in Oregon and Washington than in other sections of the District. Average interest rates on farm production loans were generally higher at small banks than at large ones. Twelfth District banking offices (including branch bank ing offices, which were treated as separate units) with total deposits of less than $2 million charged an average rate of 6.9 percent on production loans compared with 5.1 percent charged by banking offices with total deposits of $10 million and over (Table 5). Small banks in the District charged slightly more than did small banks in the country as a whole. The average interest rate on farm production loans of medium-sized banks (those writh total deposits of $2-$ 10 million) in the District wras 5.6 percent compared with 6.1 percent for the United States. The rates at large banks were the same in the District as in the United States. T a b l e 4— A of I n terest R ates verag e on F arm M ortgage I n su r e d C o m m e r c ia l B a n k s O u t s t a n d in g by T w elfth D O r i g in a l S iz e of A reas, a n d U (Percent per annum) A ll l o a n s ......................... 4.9 M L oans id -1 9 4 7 , L oan— is t r ic t , b y Original size United of loan States 6.2 Under $1,000 .................... $1,000-1,499 ...................... 5.8 $1,500-2,499 ...................... 5.4 5.0 $2,500-4,999 ...................... $5,000-9,999 ...................... 4.7 4.5 $10,000 and over............... in n it e d Twelfth District 6,5 6.0 5.7 5.4 5.1 4.8 Calif. 5.9 5.9 5.7 5.5 5.3 4.9 5.0 5.1 S tates1 InterOregon and mountain Washington states 6.8 6.1 6.5 5.7 5.8 5.7 5.3 5.1 4.7 5.0 4.4 4.8 4.9 5.1 1 Estimated on basis of banks covered by the survey. Other Influences Affecting Farm Production Loan Rates A number of other factors exercised some influence upon interest rates for farm production loans. Among these are size of bank, type of farm, net worth of bor rower, tenure of borrower, maturity, type of security, and purpose of loan. The range of variation associated with each of these factors was smaller, however, than for size of loan. For each of these characteristics, rates were usually higher on small loans than on large ones. T able of 5— A verage I n terest R a t e s on I nsu r ed C o m m e r c ia l B a n k s O by T S iz e of w elfth Bank and T F a r m P ro d u c tio n L o a n s u t s t a n d in g in y p e of M id -1 9 4 7 , In both the Twelfth District and the United States, operators of general farms had to pay a higher rate of interest for production loans than did operators of special ized farms (Table 5). Loans to livestock producers car ried the lowest average rate of any type of farm in the District. This was due in large part to the fact that the average size of loan to livestock producers was much greater than for other types of farms. The most marked difference between the District and the United States in average interest rates by type of farm occurred in the case of cotton growing. The average rate in the District was 5.2 percent compared with 7.7 percent for the country as a whole. Cotton growing outside the District is largely concentrated in the South where aver age interest rates on agricultural loans were significantly higher than in other sections of the country. Moreover, cotton growing within the District is characterized to a greater extent than in the country as a whole by largescale, efficient operations. Net worth and tenure of borrower Borrowers of large net worth were able to secure loans of given size at lower rates than were borrowers of small net worth (Table 3). Average interest rates were some what higher in the Twelfth District than in the country as T able of 6— A by D is t r ic t a n d U n it e d S t a t e s 1 (Percent per annum) T United States A ll l o a n s ..................................................................................................... 5.5 6.1 Size of bank (total deposits) Under $2 million ............................................................................. 6.9 $ 2 -1 0 million ............................................................................. ......... 5.6 $ 1 0 million and over ............................................................ ......... 5.1 6.7 6.1 5.1 Type of farm G e n e r a l......................................................................................... ......... 6.6 D a i r y .............................................................................................. ......... 5.9 W heat, corn, and field c r o p s ..................................................... 6.0 Livestock .............................................................................................. 4.7 P o u l t r y ......................................................................................... ......... 5.9 Truck ..................................................................................................... 5.7 Fruit .............................................................................................. .........5.9 C o t t o n ..................................................................................................... 5.2 Other ..................................................................................................... 5.9 1 Estimated on basis of banks covered by the surveys. verage 6.4 5.9 6.4 5.3 5.7 6.0 5.4 7.7 6.2 I n terest R a te s on I nsu red C o m m e r c ia l B a n k s O F arm— Twelfth District Type of farm S e c u r it y w elfth and F a r m P r o d u c t io n L o a n s u t s t a n d in g i n T enure of D is t r ic t , b y A r e a s , a n d U (Percent per annum) Type of security U n s e c u re d ......................................... E n d o r s e d ............................................ L iv e sto c k ............................................ Machinery ....................................... Growing crops ................................ Combination of crops, livestock. or m ach in ery................................ G. I. guarantee or insurance.. Tenure of borrower Owner, farm not m o rtg a g ed .. . Owner, farm mortgaged .......... Tenant or c r o p p e r ........................ n it e d United States Twelfth District Calif. 6 .1 5.5 5.0 5.8 5.9 5.8 5.6 6.5 5.0 7.7 6.6 7.1 6.6 6.9 4.2 6.0 5.9 6 .1 5.1 5.8 6.7 6 .1 5.8 M id -1 9 4 7 , B orrow er — 1 Estimated on basis of banks covered by the survey. S tates1 Oregon Interand mountain W ash. states 5.9 6.3 5.3 5.9 6 .1 6.0 6.6 6 .1 4.6 7.6 5.9 7.4 6.0 7.0 5.7 8.4 7.6 5.2 6.7 6.5 4.7 4.0 4.5 5.3 5.6 6.2 6 .1 6 .2 6.4 7.3 5.4 6.0 January 1948 a whole for all sizes of borrowers except those with a net worth of $ 1 0 0 , 0 0 0 or over. The proportion of farm pro duction loans made to borrowers of large net worth was substantially higher in the District than in the United States. As a result the average rate for all farm produc tion loans was lower in the District than in the United States. There was also a significant variation in average interest rates associated with the tenure of the borrower. As would be expected, tenants or croppers had to pay higher rates than owners. Furthermore, owners whose farms were mortgaged paid higher rates than did those whose farms were unencumbered. In both the District and the United States, the spread between the average rates for tenants and owners of unmortgaged farms was about one percent (Table 6). Type of security In general, unsecured loans, both in the District and in the United States, carried slightly lower average rates of interest than secured loans (Table 6 ). A bank grants unsecured loans only to those borrowers who are con sidered to be quite sound financially, whereas it requires collateral in those cases which involve greater risk. Be cause of these differences in risk, interest rates tend to be lower on unsecured than on secured loans. The only exception to this in the District was in loans secured by livestock which had low rates because of their large size. Loans secured by machinery carried the highest average rate in the District, followed by loans with growing crops as collateral. Maturity Average interest rates on farm production loans in the Twelfth District varied directly with length of maturity. Loans with maturities of six months or less had an aver age rate of about 5 percent (Table 7). Thereafter, the rates increased as maturities lengthened, reaching an average of 7.3 percent for loans running for more than two years. The pattern of variation for the country as a whole was significantly different. Very short maturities carried the lowest rates, as in the District, but the highest rate was on loans with a maturity of six to nine months. As maturities lengthened beyond that point, the average rate of interest declined. This difference between the patT able of 7— A verage I nterest R ates on I n s u r e d C o m m e r c ia l B a n k s O by M a t u r it y a n d F a r m P ro d u c tio n L o a n s u t s t a n d in g i n P u r p o se of M ......................................................................................... Maturity Demand ....................................................................................... 3 months or l e s s ...................................................................... 3-6 months ................................................................................ 6-9 m o n t h s .................................................................................. 9-12 m o n t h s ............................................................................... 1 -2 y e a r s ....................................................................................... Over 2 y e a r s ............................................................................. 1 Estimated on basis of banks covered by the survey. United States 5.5 6.1 5.0 5.1 5.1 5.9 5.8 5.6 6.4 6.2 6.6 \ 7.3 J Ko Purpose of loan Pay production or living expenses............................... .........5.7 Buy machinery or livestock................................................ .........5.3 Buy or improve land or buildings...........................................5.7 Repay debts .........................................................................................5.6 id -1947, L oan— T w e l f t h D is t r ic t a n d U n ite d S t a t e s 1 (Percent per annum) Twelfth District A ll loans 5 M O N T H L Y R E V IE W 6.8 6.2 6.6 6.0 5.7 5.9 terns of variation in the District and the United States arises because factors other than the relative disposition of banks to lend money for particular intervals of time play a part in determining average rates by maturity. Dis tribution by maturity of these other characteristics, such as size of loan and type of security, was probably different in the District than in the United States. Purpose of loan The range in variations in average interest rates ac cording to purpose of loan was only half as great in the District as in the United States (Table 7). Loans to buy machinery or livestock carried the lowest average rate of interest in the District. This was due to the large average size of District livestock loans with their accompanying low rates of interest. For the country as a whole, loans to buy or improve land or buildings had the lowest rate of interest. The average rate for this purpose was the same in both the District and the United States, 5.7 percent. Loans to pay production or living expenses had the high est rate for the United States, 6.6 percent, compared with 5.7 percent for the District. Variations in Farm Mortgage Rates Several of the factors that exercised an influence upon interest rates for farm production loans also affected rates for farm mortgage loans. These include size of bank, ma turity, type of farm, and purpose of loan. Size of bank Average interest rates on farm mortgage loans out standing at small banks were higher than at large ones. Average rates for Twelfth District banking offices (in cluding branch offices) in all three size groups were some what higher than for the corresponding groups in the country as a whole. Small banks (those with total deposits of under $2 million) charged an average rate of 5.3 per cent in the Twelfth District compared with 5 percent in the United States, while large banks (those with de posits of $10 million and over) had average rates of 4.9 and 4.6 percent respectively (Table 8). Maturity and repayment method Farmers obtained long-term mortgage credit at lower interest rates than short-term credit. This was character istic of farm mortgage loans in both the Twelfth District and the United States, but the average rates for each length of maturity were somewhat higher in the District than in the country as a whole (Table 8 ). Several factors contribute to this difference in rates for long-term and short-term mortgage credit. A bank incurs certain minimum costs in making a mortgage loan, and the longer the maturity, the lower the interest rate may be and still provide for repayment of such costs. Some short-term mortgage loans are essentially farm production loans which the bank was unwilling to make without having real estate pledged as security. Banks probably charge somewhat higher rates to borrowers of this type who do not have a very strong bargaining posi tion. It is also possible that banks may exercise somewhat January 1948 FEDERAL RESERVE B A N K OF S A N F R A N C ISCO T able 8— A verage I nterest R a te s on F arm M ortgage L oans I n s u r e d C o m m e r c i a l B a n k s O u t s t a n d i n g i n M id -19 4 7 , b y S iz e of B a n k , M a t u r i t y , a n d R e p a y m e n t M e th o d — of T w elfth D is t r ic t a n d U n it e d T a b le 9— A verage I n t e r e st R a t e s on F a r m M of I n s u r e d C o m m e r c i a l B a n k s O u t s t a n d i n g by T S tates1 T y p e of welfth Twelfth District United States 5.0 4.9 Size of bank (total deposits) Under $2 million .............................................................................5.3 $2-10 million ............................................................................. .........5.2 $10 million and o v e r ............................................................ ......... 4.9 Maturity Demand ....................................................................................... 1 year or less ........................................................................... 1-2 years .................................................................................... 2-3 years .................................................................................... 3-5 years .................................................................................... 5-10 years .................................................................................. 10-15 years ............................................................................... Over 15 y e a r s ........................................................................... Repayment method Loans maturing in 1 year or less One p a y m e n t........................................................................ Instalment ............................................................................. Loans maturing in over 1 year One p a y m e n t........................................................................ Instalment ............................................................................. and P urpose and U of n it e d in M L oans id -1947, L oan— S tates1 (Percent per annum) (Percent per annum) All l o a n s ............................................................................................ F arm D ist r ic t ortgage 2 5.8 5.5 5.3 5.2 4.8 4.8 t 4.2 j 5.0 4.9 4.6 5.1 5.6 5.4 5.1 4.7 4.6 ,^ 5.8 5.6 5.6 5.1 5.2 5.0 4.8 4.7 1 Estimated on basis of banks covered by the survey. 2 Insufficient number of loans to permit computation of an average rate. greater caution in making long-term as contrasted with short-term loans because of the prolonged period of time for which bank funds are committed, and hence such loans may be somewhat above average in quality. Farm mortgage loans repayable in installments car ried slightly lower interest rates than did single-payment loans (Table 8). Type of farm Operators of general farms, as contrasted with special ized farms, paid about average interest rates on mort gage loans, whereas on farm production loans they had rates significantly above average. Poultry producers paid Twelfth District United States All lo a n s .................................................................................... 5.0 4.9 Type of farm G e n e r a l.................................................................................. Dairy .................................................................................... W heat, corn, and field c r o p s ...................................... Livestock ............................................................................. P o u l t r y .................................................................................. Truck .................................................................................... Fruit ....................................................................................... C o t t o n .................................................................................... Other .................................................................................... 5.0 4.9 4.7 4.9 5.6 5.4 5.1 5.3 5.1 4.8 4.8 4.8 4.8 5.1 5.2 5.1 5.7 5.0 Purpose of loan Buy land mortgaged ..................................................... Buy other land ................................................................. Build or repair b u ild in g s.............................................. Other .................................................................................... 4.8 5.0 5.3 5.2 4.8 4.9 5.2 5.1 1 Estimated on basis of banks covered by the survey. the highest average rate on mortgage loans in the Dis trict, while producers of wheat and other field crops had the lowest rate (Table 9 ). The highest rate for the coun try as a whole was paid by cotton growers, who also had the highest rate on a national basis on farm production loans. In the country as a whole there was more uniform ity in mortgage loan rates by type of farm than in the Twelfth District. Purpose of loan In both the District and the United States, farm real estate loans obtained for the purpose of buying the land which is pledged as security carried a lower rate of in terest than loans used for other purposes. Rates on loans to buy land other than that mortgaged were only slightly higher (Table 9 ), while rates for loans for all other pur poses were significantly higher. TWELFTH DISTRICT EMPLOYMENT INDEXES n e w s e r ie s of indexes of total manufacturing employ ment in the Twelfth District has recently been pre A pared by this bank. Indexes of wage-earner employment in the Twelfth District were published in the M o n t h l y R e v ie w through 1945, but because deficiencies were found in the data for each of the states except California, the indexes were not continued. Since 1945 only a Cali fornia index, for which the basic data are supplied by the California State Division of Labor Statistics and Research, has been published. With this issue of the M o n t h l y R e v i e w the California index is being replaced by the new Twelfth District manufacturing series. In ad dition to wage earners or so-called production workers, the new series includes administrative, supervisory, sales, technical and office personnel, and force-account construc tion workers. As in the earlier indexes, the fruit and vege table and fish canning industries have been excluded. This is because of the extreme and changing seasonal fluc tuations in employment in the canning industry, which make seasonal adjustments difficult, and obscure basic changes in manufacturing employment. The new indexes, which are on a 1935-39 base, cover the period from 1935 to date, with only annual indexes up to 1939 and monthly indexes from January 1939 to date. These indexes have been computed for the Twelfth District as a whole, for California, Oregon, and Wash ington separately, and for the four Intermountain States, Arizona, Idaho, Nevada, and Utah, combined. No satis factory monthly data on total manufacturing employment prior to 1939 exist; the only available monthly employ ment indexes for the Twelfth District are this bank's earlier wage-earner indexes.1 The basic data for the greater part of the new indexes are the series of monthly manufacturing employment esti mates by states, beginning January 1943, initiated re cently by the Bureau of Labor Statistics.2 The indexes from 1935 to January 1943 are based upon data derived 1 Described in the Monthly Review, Novem ber 1943. 2 These estimates are published monthly by the following state agencies co operating with the Bureau of Labor Statistics: Arizona, Em ployment Se curity Com m ission; California, Division of Labor Statistics and R esearch; Nevada, Employment Security D epartm ent; U tah, Department of E m ployment Security; W ashington, Office of Unemployment Compensation and Placement. The Bureau of Labor Statistics releases the estimates for Idaho and Oregon. 7 M O N T H L Y R E V IE W January 1948 from the biennial Censuses of Manufacturers from 1935 through 1939, and from state tabulations of insured em ployment issued by the Bureau of Employment Security of the Federal Security Agency. Adjustment for seasonal variation To reveal nonseasonal movements more clearly, regu larly recurring seasonal changes were measured and the indexes were adjusted to exclude them. Seasonal fluctua tions in manufacturing employment in California, Oregon, and Washington followed established seasonal patterns up to the advent of the war. During the war years sea- sonal movements in these states virtually disappeared under the pressure of capacity operations, and no adjust ments were made. Intermountain employment during the war followed a seasonal pattern somewhat similar to, though less clearly defined than that of the prewar period. Seasonal fluctuations are beginning to appear again in em ployment, and minor seasonal adjustments have been made in the data for recent months, except for California where no definite seasonal pattern has yet become dis cernible. N o te : A detailed description of basic sources of data and adjustments made by this bank and detailed tabulations of the indexes are available on request. Percent Percent Indexes of total employment in manufacturing, adjusted for seasonal variation, 1935-39=100. Annual figures for 1935*1938, monthly figures thereafter. Latest shown are for November, except United States figure which is for October. 8 January 1948 FEDERAL RESERVE B A N K OF S A N FRA NC ISCO INDUSTRIAL PRODUCTION National Summary of Business Conditions Released December 24, 1947— Board of Governors of the Federal Reserve System I production expanded somewhat further in November. Department store sales showed more than a seasonal increase in November and the first half of De cember. Wholesale commodity prices generally continued to advance. n d u str ia l I n d u s t r i a l P r o d u c t io n Federal Reserve index, monthly figures, latest shown are for November. DEPARTMENT STORE SALES AND STOCKS The Board’s seasonally adjusted index of industrial production advanced 2 points in November to 192 percent of the 1935-39 average, a new postwar peak rate. Output of durable goods expanded somewhat further, reflecting largely increases in activity in most machinery, transportation equipment, and nonferrous metal fabricating industries. Output of steel in November was at a slightly lower rate than in October, but in the early part of December scheduled operations rose to new postwar peaks. Motor truck assemblies were curtailed in November and early December, as a result of model changeover activity at plants of a major producer, while output of passenger cars in creased. Output of lumber and other construction materials was maintained in large volume. Manufacture of nondurable products continued to increase in November, reflecting mainly a further marked rise in activity at cotton textile mills and an expansion in the volume of livestock slaughtered as a result of reduced feed supplies and high prices for feeds. Liquor production, which increased sharply in October, was curtailed in November in accordance with the Federal program to conserve grain. Production of minerals rose somewhat further in November, reflecting further gains in output of bituminous coal as increased numbers of freight cars became available. C o n s t r u c t io n Values of most types of construction contract awards, according to the F. W . Dodge Corporation, showed seasonal declines in November and were substantially larger than a year ago. The number of dwelling units started during the month, as estimated by the Department of Labor, decreased from 94,000 in October to 82,000 in November; com pletions increased from 83,000 units to 86,000. Federal Reserve indexes, monthly figures, latest shown for sales, November; for stocks, October. MEMBER BANK RESERVES AND RELATED ITEMS D is t r ib u t io n Department store sales showed a sharp seasonal increase in November and the Board’s adjusted index rose to a new high of 300 percent of the 1935-39 average, as compared with 275 in October and 291 in September. Value of sales continued at a high level in the first half of December and was 8 percent above the corresponding period in 1946. Value of department store stocks has also increased in recent months and is above the corresponding period of a year ago. Shipments of most classes of railroad revenue freight were maintained in large vol ume in November and the first half of December, after allowance for usual seasonal declines at this time of the year. Coal shipments continued to increase and were at the peak rate reached at the beginning of the year. C o m m o d it y Wednesday figures, latest shown are for December 17. MEMBER BANKS IN LEADING CITIES P r ic e s Wholesale commodity prices generally advanced further in November and the early part of December. Crude petroleum prices were increased sharply and advances were announced in refined petroleum products, newsprint, rayon, textile products, shoes, and some metal products. Government disposal prices for Japanese silk were reduced by nearly one-half. Prices of commodities traded in the organized markets rose further in November but showed little change in the first three weeks of December. The consumers’ price index was unchanged from September to October. Food prices generally showed little change in November and December, while additional increases occurred in retail prices of other goods and services. Bank C r e d it Loans to businesses, consumers, and real estate owners expanded further at banks in leading cities during November and the first half of December. Demand deposits of individuals and businesses increased 800 million dollars at these banks, and currency in circulation rose by 400 million. In the four weeks ending December 17, member banks gained reserves as a result of a continued inflow of gold, Treasury transactions, and Federal Reserve purchases of Government securities. These sources of reserves more than offset the seasonal growth in currency. Reserve Bank holdings of Government securities declined in the four-week period, reflecting Treasury retirement of bills and certificates. The System also sold substan tial amounts of bills and certificates in the market, but purchased larger amounts of notes and bonds. I n t e r e s t R a t e s a n d B o n d Y ie l d s Demand deposits (adjusted) exclude U . S. G o v ernment and interbank deposits and collection items. Government securities include direct and gtiardnteed tesueB.Wednesday figures, latest shown are for Dedember 10. Prices of Treasury bonds, which declined sharply in October and November, were held firm after the middle of November by official support. Prices of corporate bonds declined further. Yields on Treasury certificates rose and a new issue of 1Ys percent one-year certificates was offered in exchange fot* the isstie maturing January 1. January 1948 M O N T H L Y R EVIEW BUSINESS INDEXES—TWELFTH DISTRICT 1935-39 Average = 1001 Industrial production (physical volume) 2 Year and m onth Ad justed _ 1947 _____ __ January _ ____ __ February _ _ _ _ _ _ M arch ___ ____ ___ __ _______ __________ A p r il_____ M a y ___ __ __ _ ____ J u n e _____ _ _ ____ __ _ _____ Ju ly_____ A u g u s t ___ ____ ____ September October __ November Unad justed Unad justed 121 95 78 74 72 73 86 89 99 104 93 03 96 103 118 129 135 131 193 168 140 134 127 123 140 154 163 159 160 158 172 175 194 226 243 219 128 133 133 122 100 131 132 133 229 227 221 155 172 143 132 130 131 126 130 131 140 155 106 121 124 135 151 151 140 158 154 152r 148 134 136 137 137 138 139 139 139 139 140 141 219 227 255 259 267 264 261 279 278 273 r 272 122 _ ___ ____ Unad justed 148 112 77 46 62 67 83 106 113 88 110 120 140 140 133 138 108 118 1929 1930 1931 1932 1933 1934 1935 1936 __ 1937 _ 1938 1939 1940 _ 1941 1942 1943 ___ 1944 __ 1945 1946___ 1946 October___ ______ November _ _ _ _ December _______ Petroleum3 Crude Refined Lumber W heat flour Cem ent Ad justed Unad justed Merchandise and miscellaneous Total Ad justed Unad justed Ad justed 112 96 75 57 58 66 72 85 90 79 85 90 105 113 109 115 110 111 1929______________ 1930______________ 1931 ___ 1932_____ __ 1933______________ 1934 1935 _ ____ 1936______________ 1937______________ 1938 1939_____ ________ 1940______________ 1941- _ 1942_ ___ . ___ 1943______________ 1944____ _ 1945_____ 1946 Unad justed California Electric power Ad justed Unad justed Ad justed Unad justed 161 182 182 175 176 170 135 127 145 236 237 243 229 232 240 182 183 183 182 183 183 376 372 387 380 373 388 191 182 207 193 193 186 184 185 193 187 205 164 166 190 196 195 202 195 201 207 203 199 152 147 141 133 129 138 126 125 123 133 133 250 249 252 254 251 251 252 252 259 260 263 246 244 248 252 253 257 262 263 259 253 258 182 183 183 ' 184 183 182 181 183p 185p 187p 188p 182 182 182 184 183 182 182 184p 185p 187p 188p 386 387 390 392 392 394 392 408 411 418 419 379 384 389 392 394 396 392 410 412 423 420 Other 114 105 89 74 70 81 85 97 102 90 96 99 116 121 119 130 131 132 Ad justed 106 100 101 89 88 95 94 96 99 96 107 103 103 104 115 119 132 128 83 84 82 73 73 79 85 96 105 102 112 122 136 167 214 231 219 219 District Unad justed Ad justed 109 84 57 37 43 48 56 70 75 65 72 79 91 103 97 97 83 86 Unad justed 111 93 73 54 53 64 78 96 115 101 110 134 224 460 705 694 497 339 88 100 112 96 104 118 155 230 306 295 229 174 Department store sales (value) 2 Ad justed Unad justed 110 96 74 48 54 70 68 117 112 92 114 124 164 194 160 128 131 165 Carloadings (number)* Year and m onth Unad justed Factory payrolls4 Total manufacturing em ploym ent4 Dept, store stocks (value) 5 Cali fornia Pacifie North west Utah & So. Idaho Ad justed Ad justed Ad justed 112 104 94 71 68 77 86 100 105 100 109 116 139 169 201 221 244 306 109 103 94 72 68 75 86 99 106 100 109 117 136 160 192 217 242 304 115 106 91 68 66 78 85 100 105 100 110 117 146 189 219 232 252 310 124 111 97 69 72 82 89 99 104 98 110 116 138 174 212 217 237 304 Retail food prices6 District Ad justed Unad justed Unad justed 132 125 110 89 80 85 89 97 108 101 106 113 137 187 172 177 182 238 132.0 1 24.8 10 4 .0 8 9 .8 8 6 .8 9 3 .2 9 9 .6 1 0 0 .3 10 4 .5 9 9 .0 9 6 .9 9 7 .6 1 0 7 .9 13 0 .9 1 43.4 142.1 146.3 1 67.4 1946 October____________ November_____ __ December _ _ 109 111 121 128 112 107 125 134 145 151 134 129 89 83 91 99 84 79 319 319 317 330 376 503 320 325 310 313 307 329 301 289 305 270 296 334 299 313 273 1 86.2 1 99.9 1 98.4 136 134 117 120 112 115 122 109 108 109 107 108 111 109 117 112 124 124 125 124 128 114 146 150 129 130 131 134 133 129 121 122 129 122 125 120 122 123 142 142 145 142 147 129 124 113 103 108 88 91 107 82 91 92 94 89 93 96 111 98 101 102 100 101 103 95 313 330 325 315 323 319 329 340 321 324 340 249 278 295 297 300 293 271 306 335 335 400 307 317 318 314 321 317 322 329 317 321 342 318 352 336 311 331 324 333 349 323 332 332 326 335 314 313 279 294 349 363 312 294 313 315 330 331 308 287 280 267 248 253 288 315 277 290 308 304 298 285 283. 272 285 319 333 1 9 5 .7 1 9 3 .5 19 6 .6 19 7 .8 1 97.3 19 4 .8 19 6 .5 1 97.9 2 0 6 .6 2 0 4 .8 20 9 .4 1947 January______ February _ _________ March_______ _____ April____ _______ M a y ______________ J une________ ___ July_______ _______ August____________ September _____ October_______ ____ November. _ 1 The terms “ adjusted” and “ unadjusted” refer to adjustment of monthly figures for seasonal variation. Excepting department store statistics, all indexes are based upon data from outside sources, as follows: Lumber, various lumber trade associations; Petroleum and Cement, U.S. Bureau of Mines; W heat flour, U.S. Bureau of the Census; Electric power, Federal Power Commission; Manufacturing employment, Factory payrolls, and Retail food prices, U .S. B u reau of L a bor Statistics and cooperating state agencies; and Carloadings, various railroads and railroad associations. * Daily average. 8 1923-25 daily average = 1 0 0 . 4 Excludes fish, fruit and vegetable canning. Factory payrolls index covers wage earners only. 6 A t r«tail, end of month or end of year. 6 Los Angeles, San Francisco, and Seattle indexes combined, p— preliminary. r— revised. 7B FEDERAL RESERVE B A N K OF S A N F R A N C ISC O January 1948 BANKING AND CREDIT STATISTICS—TWELFTH DISTRICT (amounts in millions of dollars) C o n d itio n ite m s o f all m e m b e r b a n k s 1 Y e ar an d m o n th T o t a l2 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 I n v e s tm e n ts 21 L o a n s an d d isco u n ts C o m l., in d . For pu r c h ., & agrie. carry g secs. R eal estate 2,239 2,218 1,898 1,570 1,486 1,469 1,537 1,682 1,871 1,869 1,967 2,130 2,451 2,170 2,106 2,254 2,663 4,068 663 664 735 933 870 934 956 1,103 1,882 82 76 65 59 51 62 184 343 195 1946 October November December 3,794 3,954 4,068 1,882 195 1947 January February March April M ay June July August September October November December 4,140 4,254 4,364 4,479 4,558 4,658 4,755 4,879 4,997 5,158 5,240 5,362 228 309 560 458 561 560 528 510 575 587 614 498 486 524 590 541 538 557 698 795 908 1,234 1,158 984 840 951 1,201 1,389 1,791 1,740 1,781 1,983 2,390 2,893 4,356 5,998 6,950 8,203 8,821 1,776 1,915 1,667 1,515 1,453 1,759 2,006 2,078 2,164 2,212 2,263 2,351 2,417 2,603 3,197 4,127 5,194 5,781 36 49 99 148 233 228 167 96 90 127 118 68 144 307 842 1,442 2,050 303 560 9,157 8,815 8.426 891 889 908 8,757 8,801 8,821 5,669 5,696 5,781 808 610 303 8,303 8,058 7,909 7,677 7,662 7,370 7,375 7,353 7,364 7.361 7.361 7,243 911 893 894 876 862 871 874 871 889 896 884 872 8,704 8,367 8,327 8,334 8,260 8,297 8,366 8,462 8,600 8,722 8,797 8,811 5,761 5,804 5,820 5,837 5,851 5,908 5,888 5,887 5,909 5,949 5,907 5,988 308 370 396 286 235 103 148 208 216 192 205 148 668 670 662 686 327 362 399 460 275 974 899 885 908 1,431 211 1,431 2,047 1,828 649 M e m b e r b a n k reserves a n d related ite m s 5 Y e ar and m o n th Reserve b a n k cred it8 C o m m e rcia l o p eration s8 T reasu ry o p eration s6 C oin an d cu rren cy in circu lation 1946 October November December 1947 January February March April M ay June July August September October November December _ 34 — 16 21 + — 42 — 2 — 7 2 + 6 + — 1 — 3 2 + 2 + 4 + 107 + + 214 98 + — 76 9 + 0 — 53 — 154 — 175 — 110 — 198 — 163 — 227 — 90 — 240 — 192 — 148 — 596 1,980 3,751 3,534 3,743 1,607 T o ta l R equired Excess 6 16 48 30 18 4 14 38 3 20 31 96 227 643 708 789 545 326 189 186 231 227 213 211 280 335 343 361 388 493 700 1,279 1,937 2,699 3,219 2,871 175 183 147 142 185 242 287 479 549 565 584 754 930 1,232 1,462 1,706 2,033 2,094 171 180 154 135 142 172 201 351 470 418 459 515 720 1,025 1,343 1,598 1,878 2,051 4 5 4 8 37 84 100 119 70 142 138 257 245 262 103 104 136 59 146 126 97 68 63 72 87 102 111 98 102 110 134 165 211 237 260 298 — + + — — + 162 74 37 109 14 62 2 34 + — 21 — 234 — 48 — 87 23 + — 4 + + — — 25 29 136 37 — 35 — 25 3 + — 69 — 14 — 41 — 213 78 + — 85 — 39 0 5 U n a d ju ste d 23 89 154 234 150 257 219 454 157 276 245 420 ,000 ,826 ,486 ,483 ,682 ,329 _ + + + 223 111 62 — — + 2 2 7 2,875 2,866 2,871 2,040 2,092 2,094 2,002 2,030 2,051 56 54 59 310 313 339 168 133 50 47 49 — 7 + 381 + 124 + 172 35 + 33 + 49 + — — — — + — — — — — + 81 32 30 18 10 13 23 23 10 16 3 18 2,800 2,765 2,735 2,716 2,714 2,695 2,669 2,685 2,675 2,656 2,653 2,639 2,081 1,981 2,003 1,997 1,993 1,992 1,963 2,078 2,095 2,137 2,130 2,202 2,043 1,982 1,940 1,934 1,934 1,944 1,956 1,985 2,028 2,046 2,059 2,085 60 51 61 63 59 51 60 62 80 77 65 70 321r 325 332 309 297 322 + + + + + + + + + + + ' u a im a e o n s index 31 citie s8 R eserves7 F .R . n o te s o f F .R .B . o f S .F . T o ta l6 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 U .S . G o v ’ t d e p o sits4 495 467 547 601 720 1,064 1,275 1,334 1,270 1,323 1,450 1,482 1,738 3,630 6,235 8,263 10,450 8.426 647 721 711 635 1,000 T im e d eposits (except U .S . G o v ’ t) 4 1 oth er :urities A ll oth er 730 798 864 931 D em and deposits a d ju s te d 3,4 U .S . G o v ’ t secu rities 4* +i +2 +4 +4 +4 +1 + + — — + + + + + + + + + + + + + 305 322 325 346r 344 365 1 Annual figures are as of end of year; monthly figures are as of last Wednesday in month or, where applicable, as of call report date. 2 M onthly data for 1946 partly estimated. * Demand deposits, excluding interbank and U .S. G ov’t deposits, less cash items in process of collection. 4 M onthly data partly estimated. 6 End of year and end of month figures. 6 Changes only. 7 Total reserves are as of end of year or month. Required and excess: monthly figures are daily averages, annual figures are December daily averages. 8 Debits to total deposit accounts, excluding interbank deposits. 1935-39 daily average = 1 0 0 . %>— preliminary. r— revised.
@FedFRASER