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MONTHLY REVIEW T W E l FT H F E D E R A L RESERVE D ISTRI C T F e d e r a l R e se r v e Ba n k o f S a n F r a n c is c o M a y 1955 REVIEW OF BUSINESS CONDITIONS h e business situation in the Twelfth District and in the nation continued to strengthen early in the second T quarter of the year. In addition to the further improve ment in the level of activity there has been a noticeable tendency for recent gains to be somewhat more wide spread than earlier in the year. A notable feature of the recovery to date has been its heavy dependence upon unusually high rates of activity in two major markets, automobiles and new residential construction. While both of these markets continue very active, their sharp up ward push, after allowance for seasonal influences, has largely disappeared, and a greater share of over-all gains in general business activity has stemmed from rising levels of output and employment in other industrial and service establishments. This broadening of the recovery is to be expected as a result of the rise in personal incomes and a tendency to spread the increment of purchasing power over the wide range of commodities and services normally appearing in consumer budgets. Moreover, the rise in business incomes and confidence has led to a marked upturn in outlays for capital equipment. Employment rises more sharply in the District than in the nation In terms of employment changes (the most compre hensive measure of general levels of economic activity available for both the District and the nation) the Dis trict has recovered more completely than the nation from the low point of the recession and the District’s recovery has covered a broader front. The low point in employ ment during the recession came in August 1954 for the District and September 1954 for the nation. However, in order to simplify the comparisons that are used in the following discussion, September will be used as the low point for both the District and the nation. Total District nonagricultural employment, seasonally adjusted, ex panded by more than 3 percent from last September to mid-April of this year compared with a rise of less than 2 percent for the nation as a whole. Moreover, District employment in March exceeded its previous peak in July 1953, moved into even higher ground in April, and from all indications will show a further gain in May. Nation ally, nonagricultural employment is still below the pre vious peak in July 1953, although the total number at I ndexes of N o n a g r ic u l t u r a l U n it e d S t a t e s a n d E m ploym ent T w elfth D is t r ic t September 1954 = 100 (Adjusted for seasonal variation) t-------United States------ N Sept. 1954 April 1955 100.0 101.7 Manufacturing ............. 100.0 104.0 M ining ............................. 100.0 100.1 Contract con stru ctio n .. 100.0 99.9 Transportation and public u t ilit ie s ........... 100.0 98.6 100.0 101.0 Finance .......................... 100.0 101.4 Service ............................ 100.0 100.6 G o v e rn m e n t.................... 100.0 101.3 Industry division ,------Twelfth District----- -, Sept. 1954 April 1955 100.0 103.2 100.0 103.6 105.4 100.0 100.0 108.0 100.0 100.0 100.0 100.0 100.0 102.1 103.9 103.2 101.9 102.2 Source: Board of Governors of the Federal Reserve System and Federal Reserve Bank of San Francisco. work in May exceeded the total employed in May 1953. In addition, the percentage increases recorded since last September for each of the major industrial classifications, except for manufacturing, were significantly larger in the District than they were in the country as a whole. The slightly smaller gain in manufacturing employment in the District than in the nation (3.6 percent compared with 4 percent) reflects the lesser importance in the structure of this region’s economy of those industries that have undergone the major expansions nationally. This is particularly the case for the automobile and iron and steel industries. While these industries have had a sharp rise in activity in the District as well as in the nation, the gains have had a smaller over-all impact on the District economy than in the country as a whole since they account for a smaller fraction of total manufactur ing employment in the District than in the nation. A closer look at developments in the major nonmanu facturing industries will point up the reasons for the more complete and faster District recovery from the 1953-54 recession. Also in This Issue Ownership of Demand Deposits— Twelfth D i s t r i c t Changes in Banks and Branches— Twelfth District, 19 5 3 -5 4 . . . . 63 65 62 FEDERAL RESERVE BANK OF SAN FRANCISCO Construction shows most rapid rise from earlier lows The largest District employment gain both in terms of percentage increase and rise relative to the national pat tern has occurred in contract construction. In construc tion, an industry normally accounting for a larger pro portion of total employment in the District than in the nation, the relative District gain is outstanding. After seasonal adjustment the percentage rise in District con struction jobs from last September through mid-April was 8 percent. This compares with a slight decline in employment in construction in the nation during the same period. Unfortunately, statistical data are not available in suffi cient scope or comparability to determine precisely the trends in particular segments of the construction field that account for this large disparity between the national and District job experience. However, the data and other information that are available suggest that in recent months the building boom has been substantially more intense in the District than in the country as a whole. Part of this greater District increase stems from the relative weakness in District construction activity during the first six to eight months of 1954. One important factor contributing to that weakness was the scarcity of resi dential mortgage funds, for which the District is heavily dependent upon large eastern institutional lenders. The subsequent easing in money markets and the renewed readiness of these lenders to make available large blocks of mortgage funds on extremely liberal terms had an unusually sharp impact upon construction activity in this District. These developments in mortgage markets, combined with the relatively better sustained and subsequent greater rise in over-all levels of employment and incomes, help to account for the much greater rise in District construc tion demands and employment. The fact that the District continues to gain population at a faster rate than the country as a whole also intensifies the District demand not only for housing but for other types of construction as well. This is particularly noticeable in school, highway, commercial, and the various community service building requirements. M ining employment up sharply The growth of employment in District mines, despite the rather minor importance of mining in the over-all structure of the District economy, has also been large both percentagewise and in relation to changes nationally. Mining employment, seasonally adjusted, in the District rose by more than 5 percent compared with a gain of only one-tenth of 1 percent for the nation from last September to April of this year. It should be noted that many Dis trict nonferrous mines were shut down as a result of labor disputes in the late summer and early fall of last year, which accounts for part of the subsequently large District rise in mining activity. More important, however, has M ay 1955 been the greatly strengthened markets for metals, par ticularly for nonferrous metals of which the District is a major supplier. Prices of copper, lead, and zinc have all risen in response to tight national and world supplies with a consequent sharp upward impetus to output and employment in District mining operations. Tightness in these markets is evidenced in the withdrawal of supplies from defense stockpiles to prevent serious bottlenecks in industrial production. Noncommodity producing industries show substantial but more moderate gains Those industrial segments of the District economy whose output is essentially of a service character, including government activities, have all shared in varying degree in the employment advance since last September. In con trast to the industries already discussed, employment in the service industries did not generally decline in any significant degree at any time during the recessionary period. Moreover, their employment has risen substan tially since the low in total employment last September and accounts for a significant proportion of the rela tively greater growth in total nonagricultural employment in the District than in the nation. A number of factors have combined to raise the Dis trict level of activity in the service industries. This group of industries includes transportation, public utilities, finance, service, and governmental activity. Perhaps the factors most responsible for the greater growth of em ployment in these lines in the District than in the nation have been the continued faster rate of population growth in the District and the somewhat more favorable District economic situation generally throughout the past two years or so. Supplementing these trends has been the increasing proportion of consumer disposable incomes being devoted to the purchase of services as opposed to the buying of physical goods. As many of the services produced or performed by these industrial sectors are intimately related to home ownership, the greater intensity of residential construc tion activity in the District is an additional factor in the better regional than national employment gains in these classifications. Suburbanization both in housing and in commercial enterprises has required sharply increased provision of transportation, communication, public utility, and a host of governmentally supplied community serv ices. The latter factor, especially as it reflects the growth in school population in newly developed areas, is chiefly responsible for the substantial gain of more than 5 percent in state and local government employment in the District since last September. Federal Government employment in this District is an exception to these general trends. Continuing a decline of more than two years duration, Federal Government employment fell further in the September to April period being discussed. Changes in Federal Government em ployment in this District are heavily influenced by fluc tuations in employment at national defense installations. 63 M O NTHLY REVIEW M ay 1955 ployment, seasonally adjusted, declined by more than one-fourth from September to April compared with a decline in the nation of about 15 percent. Unemployment in relation to total labor force has also shown significant improvement during this period. Although the District ratio of unemployed to labor force exceeded the national figure during most of the winter months, recent sharp declines have brought it into rough equality with the national ratio, at least through mid-April. The national ratio reached a two-year low of 3.8 percent in mid-May, down from 4.6 percent in April. In all probability the District ratio will show an equivalent decline when the data for May become available. While the rate of decline in Federal employment has moderated substantially from earlier periods, some addi tional slight decline in the Federal budget and a shifting emphasis in defense policies may imply further moderate employee reductions at ground force installations in this District. Unemployment situation substantially improved Reflecting the substantial increases in the number of people employed, unemployment, after adjustment for seasonal fluctuations, has declined sharply in both the District and the nation. In view of the relatively larger District employment gains, the absolute level of unem OWNERSHIP OF DEMAND DEPOSITS—TWELFTH DISTRICT n d iv id u a ls , In the nation as a whole demand deposits also increased, though at a much slower rate than in this District. In fact, the dollar increase in this District was almost 25 percent of the dollar increase for the entire nation, though this District’s holdings represent only 11 percent of total holdings in the United States. Except for public utilities and transportation lines, other nonfinancial businesses, and nonprofit associations, each type of holder had a faster rate of growth in the Twelfth District than in the country as a whole. partnerships, and corporations held I$11,610 million in demand deposits at all commercial banks in the Twelfth District on January 31, 1955, ac cording to the Federal Reserve System’s annual Survey of Demand Deposit Ownership.1 This estimated record level represents an increase of $1,050 million (9.9 percent) over the year-ago level. The rather substantial increase in demand deposits2 occurred almost entirely during the last half of the Survey year. The revival in business ac tivity that started last fall and the credit easing actions of the Federal Reserve System, which resulted in an increase in loanable funds at commercial banks, no doubt contributed to the deposit growth in the District. Each type of holder with the exception of “ Other nonfinancial businesses” shared in the increase, as indicated in the accompanying table. Present ownership distribution The ownership distribution of demand deposits for the nation and for the District followed the same general pattern (i.e., businesses owned more than one half of total demand deposits, and individuals other than farmers held more than one-third). Within this broad pattern there were some fairly sharp differences, however, which, 1See section “ Note on New Sampling Techniques” on page 64. 2Demand deposits as used throughout this article refer to those held by indi viduals, partnerships, and corporations. E s t im a t e d O w n e r s h ip of C o r p o r a t io n s at A D ll em and T D w elfth e p o s it s o f D I n d iv id u a l s , P a r t n e r s h ip s , is t r ic t a n d U n it e d and S tates B a n k s (in millions of dollars) Type o f holder A L L H O L D E R S ..................................... Business— t o t a l ............................................ C o r p o r a te ......................................... N o n co r p o ra te ................................... Nonfinancial business .......................... C o r p o r a t e .......................................... N o n co r p o ra te ................................... Manufacturing and mining . . . . . . . Public utilities and transportation. Trade ..................................................... Construction ....................................... Other ..................................................... Financial business ................................. C o r p o r a te .......................................... N o n co r p o ra te ................................... Farmers ......................................................... C o r p o r a te .......................................... Individuals ..................................... Individuals other than f a r m e r s ............. Nonprofit a ss o cia tio n s ............................... Foreign and trust d e p o s its ...................... -Tw elfth District----------------------------N -U nited States»----------------------------- N Change from Jan. 30, 1954 Change from Jan. 30, 1954 ,— Amount outstanding— N to Jan. 31, 1955------- , -to Jan. 31,1955------- v (— Amount outstanding— N Jan. 30, 1954 Dollar Jan. 30, 1954 Dollar Jan. 31, 1955 (Revised) amount Percent Jan. 31, 1955 amount Percent (Revised) . 11,610 10,560 97,800 102,300 + 4 ,500 4- 9.9 + 1,050 + 4.6 6,260 5,670 590 + 10.4 58,900 57,200 + + 3.1 + 1,800 4,440 3,950 + 12.4 45,200 + 1,000 44,200 + 490 + 2.4 1,830 1,710 110 + 7.0 13,000 700 13,700 + + 5.7 + 5,070 4,620 + 9.7 48,400 47,400 + 450 + 2.1 + 1,000 3,500 3,150 350 + 11.1 37,200 36,800 500 + + + 1.3 1,580 1,470 110 + 7.5 11,200 10,700 + + 4.7 + 500 2 1,850 1,570 + 17.8 21,600 21,600 + 280 + 0.1 i 390 390 0 4,700 4,500 200 + + 3.4 1,820 1,660 160 + 9.6 14,600 14,200 + + 3.0 + 400 2 390 370 20 + 5.4 2,500 2,400 + + 0.9 620 630 10 — 1.6 4,700 5,100 — + 7.6 + 400 1,190 1,040 150 + 14.4 10,500 9,700 + 800 + + 8.3 940 800 140 + 17.5 8,000 7,400 + + 7.7 + 600 250 240 10 + 4.2 2,500 + 10.2 2,300 + + 200 — — , 740 680 60 + 8.8 5,400 5,500 100 'L 2 _ + n .a . n .a . 80 70 10 + 14.3 + n .a . n .a . 650 600 50 + 8.3 + 3,890 470 250 3,540 450 230 + + + 350 20 20 + + + 9.9 4.4 8.7 31,100 4,400 2,500 p Preliminary, n.a. N0t available. 1Less than $5 million. 2 Less than $50 million. Note: Figures may not add to totals because of rounding. Data are not comparable with figures previously published. 28,500 4,100 2,500 + 2.600 300 + 2 + + 9.1 6.7 0.4 64 FEDERAL RESERVE BANK OF SAN FRANCISCO to a large extent, reflect variations in the industrial struc ture of the nation as a whole compared with that of the Twelfth District. The most noticeable difference between the District and the national ownership distributions was in manufacturing and mining. Nationally this group held 21 percent of total demand deposits, while in the District they held 16 percent. The national figure is strongly in fluenced by the Second Federal Reserve District (New Y ork) and to a lesser degree by three other eastern and midwestern Districts where manufacturing and mining concerns held a higher average portion of demand de posits. The public utilities and transportation group was the only other classification that held a larger percentage of total demand deposits nationally than it did in the District— 5 percent and 3 percent respectively. In the case of financial businesses, the percentages of total demand deposits held by them in this District and in the nation are the same. However, financial corporations, as distinct from unincorporated firms, held a slightly larger share in the District than in the nation as a whole. Individuals and farmers in the Twelfth District jointly held 40 percent of total demand deposits compared with 36 percent nationally. Farmers in this District accounted for about 14 percent of the total demand deposits held by all farmers in the United States and “ other” individuals held about 13 percent of the national total. Changes in demand deposit holdings Total demand deposit holdings of Twelfth District businesses increased 10.4 percent during the survey year. The dollar increase, $590 million, made up over one half of the total increase in Twelfth District demand deposits. Corporate businesses, which increased their holdings by 12.4 percent during the year, accounted for the largest part of the gain, $490 million. Among nonfinancial busi nesses (corporate and noncorporate), the greatest in crease was made by manufacturing and mining concerns — a gain of 17.8 percent. This possibly was the result of improving business activity and industrial growth in the District with an accompanying increase in dollar value of output. Moreover, the low level of yields on short-term securities may have tended to encourage accumulation of cash funds for tax purposes, and the holding of un distributed profits in the form of cash. The general in crease in Twelfth District business activity also probably accounted for the increase in demand deposit holdings for the trade and construction categories, which showed gains of 9.6 percent and 5.4 percent respectively. The “ Other” business category which includes deposits of theatres, hotels, garages, laundries, and professional peo ple, etc., was the only classification in this District which showed a reduction in demand deposit holdings from the prior year. Nationally this group showed a substantial percentage increase (7.6 percent), rising by approxi mately $400 million. Financial businesses, such as real estate firms, insur ance companies, security dealers, and finance companies, M ay 1955 increased their demand deposit holdings during the year by $150 million or 14.4 percent. Only $10 million of this increase was accounted for by noncorporate businesses. Insurance companies, which received a substantial share of personal savings during 1954, probably accounted for a considerable part of this. It is also probable that real estate sales companies have been building up their de posits as a result of a high rate of residential sales, espe cially since July of last year. Both corporate and individual farmers showed an in crease in their holdings of demand deposits during the year. The increase in Twelfth District farm deposits is interesting in view of the fact that nationally farmers reduced their deposits by 2 percent. On the other hand, personal accounts excluding farmers increased nationally as well as in the Twelfth District. However, the rate of increase was somewhat, though not significantly, greater in the District than in the country as a whole. Nonprofit associations such as churches, hospitals, charities, labor unions, and private schools and colleges, while increasing their demand deposit holdings in this District, did not do so at as fast a rate as they did nationally. The remaining group, foreign and trust de posits, had a fairly large percentage increase in this Dis trict but declined slightly in the United States. Note On New Sampling Techniques The techniques used for estimating the 1955 owner ship of demand deposits were different in several respects from those used in prior years. It was possible to revise 1954 estimates to make them comparable with 1955. Several of the revisions employed in the current Survey were introduced in 1954, and the data for last year could be reorganized in a manner that permitted estimates reasonably comparable to those for 1955. Revised esti mates for earlier years, however, were not attempted. Thus, the foregoing discussion has been confined to the current structure of demand deposit ownership and to changes in holdings that occurred in the last year. The Twelfth District estimates used in this article were derived from data furnished by selected individual commercial banks and banking offices in this District. Each reporting banking office made a listing of all ac counts over a specified dollar amount ($3,000, $10,000, or $25,000) depending upon the total amount of its de mand deposits on December 31, 1953. Accounts below the minimum size were then sampled on a systematic basis.1 All accounts thus chosen were then classified by type of holder. Using these data, ownership estimates for 90 size-area breakdowns were prepared. These break downs were then totaled to arrive at District estimates. While basically the same method of obtaining data was followed in prior Surveys, there was one major difference, namely, that formerly the banking offices were not required to sample accounts with balances below a 1The first account to be used was randomly chosen; then, depending upon the size classification of the banking office, every fifth, twentieth, or thirty-third account thereafter was used. May 1955 65 M O NTHLY REVIEW specified minimum. Various examinations of the owner ship estimates made on the basis of these limited data indicated that some classifications were being overesti mated and others underestimated. For this reason the sampling techniques, classification of banking offices, and the procedure used in deriving the final estimates of ownership were revised. In 1954 a larger number of accounts was enumerated by the reporting banking offices than in the current Survey. By using these data and a special subsample of smaller accounts reported in the current Survey it was possible to revise last year’s estimates. The principal result of the revision of the 1954 estimates was to in crease the estimated amount of demand deposits held by individuals and to decrease the estimates for businesses. For the 1955 Survey it was possible to compute some measures of the probable degree of reliability of the esti mated total amount of demand deposits as derived from the sample. These tests indicated that the larger dollar volumes shown for 1955 in the table on page 63 are more reliable than the smaller amounts such as those shown for farmers, nonprofit associations, and trust and foreign accounts. However, because data for 1954 were not collected in a manner which would permit tests of sample reliability, no measures of variation could be made for those data. CHANGES IN BANKS AND BRANCHES—TWELFTH DISTRICT, 19 5 3 -5 4 h e r e were 2,076 banking offices, including military facilities, to serve the public in the Twelfth District T as of December 31,1954,49 more than at the end of 1953.1 N U M B E R O F B A N K IN G O F F IC E S , B A N K S , A N D B R A N C H E S T W E L F T H D I S T R I C T , 1945-1954 Number 25001 Banking Offices 1500 Branches and Military Facilities 1000 500 Banks 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 As in the country as a whole, bank mergers occurred on a large scale in the Twelfth District during 1954 and affected more banking offices than in any other postwar year. Of the 70 District banks discontinued during 1954, 68 of them were absorbed by existing banks, two banks in one city consolidated into one organization, and one bank liquidated voluntarily. Three of the banks that were absorbed were closed and their activities were transferred to other branches of the acquiring bank in the same or nearby communities. Of the 70 banks discontinued, one JT he data on banking offices presented in this article are not entirely com parable with those used in similar articles in previous years. T h e principal differences in the present treatment are the inclusion o f m ilitary facilities as banking offices, whereas form erly they had been om itted, and the exclusion o f certain nondeposit offices o f financial organizations w hich technically fall under state banking laws but are not serving regular banking functions. These latter offices had form erly been included as banking offices. These changes provide data that more accurately represent the number o f banking offices accepting deposits than did the classification previously used. C hanges in Ban ks and B r a n c h e s -—T w elfth D e ce m b e r 31, 1953 and 1954 D e c . 31,1953 N u m b e r o f b a n k s ................................ 502 1,475 N u m b e r o f b ra n ch es ...................... N u m b e r o f m ilitary f a c i l i t i e s .. . 50 D e c . 31,1954 442 1,582 52 2,076 D is t r ic t C h ange during year — 60 + 107 + 2 + N ote: T w elfth D istrict total for 1954 includes one member bank in Alaska. 49 B ra n ch B a n k in g S y s t e m s 1— T w e l f t h D is tr ic t D e c e m b e r 31, 1953 and 1954 B anks operating f ------- — braiich e s —---------N .. C a l i f o r n i a ............... , .. ,. .. U ta h .......................... W a s h i n g t o n .......... . . ,— A ll— , /—M em ber-^ 1954 1953 1954 1953 2 6 2 7 36 36 54 58 6 8 8 6 4 4 5 5 10 13 3 5 6 6 9 23 17 15 24 T w e lfth D is tr ic t . .. . 118 122 74 74 N u m b e r o f branches -------operated— ^—M e m b e r —% 1953 1954 1953 1954 41 58 50 43 1,001 1,058 1,033 1,121 65 65 60 60 22 21 20 24 106 138 116 129 37 34 34 38 161 177 176 190 f t -------A ll------- \ 1,634 1,525 1,496 1,423 1 Includes banks operating branches a n d /o r military facilities. was in Arizona, forty in California, one in Idaho, one in Nevada, twenty in Oregon, and seven in Washington. In California, 38 of the discontinued banks with their 27 branches were taken over by nine existing branch sys tems, with one branch system acquiring 27 banks and 24 of their branches. In Oregon, two branch systems ac quired the 20 discontinued banks and their 13 branches. In Washington, of the seven discontinued banks, six of them with two branches were taken over by three branch systems. Nine new banks were organized during 1954, and one existing bank in Alaska became a member of our District. Five of the newly organized banks were in California, one in Idaho, one in Nevada, and two in Washington. Six of these new banks are members. T otal A ssets of M em ber an d N on m e m b e r B ran ch ban k as p ercen t o f all bank assets —> M e m b e r branch banks-<N 1954 1953 1954 1953 $ 528,927 $ 481 ,258 97.2 96.0 16,354,858 15,610,984 89.7 90.6 83.4 82.9 412,693 434,960 89.5 237,108 210,806 89.7 1,487,573 91.5 86.9 1,697,575 57.4 54.3 461,257 403 ,800 87.2 1,995,901 2,153,372 B r a n c h B a n k in g S y st e m s (in thousands) -A ll1954 1953 639 ,170 $ 572,865 A r iz o n a 1 . . $ 17,613,119 16,555,719 C a liforn ia2 . 474,349 450 ,150 Id a h o .......... 235 ,530 2 68 ,092 N evada . . . 1,555,509 1,758,384 O reg on . . . 4 21 ,326 4 85,605 U ta h ^ .......... 2 ,292,693 2,466,961 W a s h in g to n T w e lfth D is tr ic t . $23 ,705 ,68 0 $ 22 ,083 ,79 2 $21,868,057 $ 2 0 ,603 ,01 5 1 Asset figures clu de figures were 11 such 2 Asset figures 86.1 88.6 88.7 not available for one branch system . Asset figures for Arizona in for Eleventh D istrict branches o f T w elfth D istrict banks; there branches in 1953 and 17 in 1954. include 3 out-of-state branches. 66 M ay 1955 FEDERAL RESERVE BANK OF SAN FRANCISCO N um ber of B a n k i n g O f f ic e s 1— T w e l f t h D D ecember 31, 1945-1954 is t r ic t A r iz o n a ............................................................................................ California ....................................................................................... Idaho .............................................................................................. N e v a d a ............................................................................................ O r e g o n ............................................................................................ Utah ................................................................................................ W a s h in g t o n ................................................................................... 1945 31 1,099 86 24 145 76 238 1946 32 1,087 89 25 146 71 240 1947 38 1,098 93 26 152 75 246 1948 41 1,120 95 26 160 77 251 1949 44 1,155 96 27 167 78 261 1950 46 1,181 98 27 173 79 268 1951 55 1,205 100 29 175 84 280 1952 58 1,235 102 30 180 89 286 1953 62 1,264 103 30 184 91 293 1954 69 1,292 103 32 186 92 301 Tw elfth 1,699 1,690 1,728 1,770 1,828 1,872 1,928 1,980 2,027 2,076 District ........................................................................ 1 Includes head offices of banks, branches, and/or military facilities. N ote: Twelfth District total for 1954 includes one member bank in Alaska. Nine new branch systems, including a national bank operating one military facility for the first time, came into existence during the year. Seven of the new banking systems were in operation at the end of the year with fifteen banking offices. Thirteen branch systems with 42 branches were absorbed by existing banks. Nine of these systems were in California, three in Oregon, and one in Washington. There were 113 branches established in the Twelfth District during 1954, including two military facilities. In addition to the net conversion of 65 discontinued banks into branches, 48 de novo branches and facilities were established. Of these de novo branches, 31 were in Cali fornia, seven in Arizona, six in Washington, two in Ore N Arizona1 .................. California2 ................ Idaho ......................... Nevada .................... O r e g o n ...................... Utah ........................... W a s h in g t o n ............. um ber and T otal -A ll banks------------------,—Number-^ --------------- A ssets----------1954 1953 1954 1953 657,768 $ 596,809 11 12 171 206 19,625,475 18,264,021 38 38 568,917 543,074 8 8 298,783 263,288 48 68 1,922,162 1,789,781 54 54 846,697 776,509 I l l 116 2,827,816 2,662,387 T w elfth District3 . . 442 502 $26,751,978 $24,895,869 A sse ts of A ll B a n k s — T Decem ber 31, 1953 and 1954 (assets in thousands) w elfth -M em ber bank!S------------------------- \ 1954 1953 1954 3 4 $ 535,941 108 125 18,040,602 20 20 487,491 7 6 267,799 20 27 1,775,231 29 29 721,508 47 48 2,335,750 1953 $ 490,690 16,937,898 463,746 233,565 1,604,445 660,281 2,193,627 $24,168,682 $22,584,252 235 1 Includes one nonmember bank for which asset data are not available. 3 Asset items include 3 out-of-state branches. 8 Twelfth District totals for 1954 include one member bank in Alaska. gon, and one each in Nevada and Utah. Four branches were discontinued. As the foregoing figures illustrate, in terms of number of offices, branch banking continued to expand in the District in 1954. The number of branches has increased 39 percent since 1945. At the end of 1954, 27 percent of all banks in the District were branch banks and they operated 84 percent of all banking offices. Despite the substantial increase in the number of branch banking offices, the proportion of total bank assets in the District held by branch banking systems declined from 88.7 per cent at the end of 1953 to 88.6 percent at the end of 1954. In other words, total assets of all banks increased during 1954 at a somewhat faster rate (7.5 percent) than did the assets of branch banking systems (7.3 percent). 259 D is t r ic t — — — — -----N oiimember banks--------------N r - Number—s 1954 1953 1954 1953 $ 121,827 $ 106,119 8 8 1,584,873 1,326,123 63 81 81,426 79,328 18 18 30,984 29,723 1 2 185,336 41 146,931 28 125,189 116,228 25 25 64 68 492,066 468,760 207 243 $2,583,296 $2,311,617 Mem ber bank as percent of all bank f— assets — \ 1954 1953 81.5 82.2 91.9 92.7 85.7 85.4 89.6 88.7 92.4 89.6 85.2 85.0 82.6 82.4 90.3 90.7 M O ÑTHLY REVIEW M ay 1955 67 BUSINESS INDEXES— TW ELFTH DISTRICT1 (1947-49 a v e r a g e = 100 ) Total Waterborne Car nonagri Total Retail Dep’t foreign cultural m f’g loadings store food trade8* • Wheat Electric employ employ (num sales prices 8. 6 ber)* Copper3 flour8 power ment4 (value)2 ment Exports Imports Industrial production (physical volume)2 Year and month 1929 1931 1933 1935 1937 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1954 M arch April M ay June July August September October Novem ber December 1955 January February March Petroleum8 Lumber Crude Refined Cement Lead8 80 42 34 45 61 60 65 77 77 74 74 61 80 94 102 104 116 115 111 119 111 87 57 52 62 71 67 67 69 74 85 93 97 94 100 101 99 98 106 107 109 106 78 55 50 56 65 63 63 68 71 83 93 98 91 98 100 103 103 112 116 123 119 54 36 27 33 56 56 61 81 96 79 63 65 81 96 104 100 112 128 124 130 132 165 100 72 86 114 93 108 109 114 100 90 78 70 94 105 101 109 89 86 74 70 105 49 17 37 88 80 94 107 123 125 112 90 71 106 101 93 115 115 112 111 101 90 86 75 87 84 91 87 87 88 98 101 112 108 113 98 88 86 95 96 96 99 29 29 26 30 38 40 43 49 60 76 82 78 78 90 101 108 119 136 144 161 173 115 116 123 97 79 87 109 124 117 130 108 107 107 107 106 104 105 104 104 105 118 119 123 119 118 115 121 116 119 119 116 134 143 140 143 137 138 143 132 132 76 71 67 69 63 73 69 70 73 69 99 98 103 105 91 75 97 110 116 114 98 96 96 96 92 101 108 105 104 101 133 131 120 105 105 106 116 122 120 119 131 137 74 76 82 118 130 130 107r 112r 108 30 25 18 24 30 31 33 40 49 59 65 72 91 99 104 98 105 109 114 116 113 64 50 42 48 50 47 47 52 63 69 68 70 80 96 103 100 100 113 115 113 113 190 138 110 135 170 163 132 124 80 72 109 119 95 101 101 96 95 99 102 99 103 111 118 122 120 ’ *47 60 55 63 83 121 164 158 122 97 100 102 97 105 122 132 139 136 102 68 52 66 81 77 82 95 102 99 105 100 101 106 100 94 97 100 101 100 96 “ ¿9 129 86 85 91 186 171 140 131 ’ 57 81 98 121 137 157 200 308 260 171 168 174 183 179 174 174 176 177 173 120 120 120 119 119 119 120 120 121 121 136 136 136 137 131 130 136 137 138 139 94 99 97 96 88 90 97 102 98 106 111 111 114 114 115 115 110 116 114 118 113 113 114 114 113 113 113 113 111 111 156 157 158 141 144 96 115 112 118 113 233 232 271 237 331 282 262 277 196 313 173 179 188 122 122 123 139 139 140 99 104 105 124 115 116 112 112 112 163 183 287 263 ’ ÌÓÓ BANKING AND CREDIT STATISTICS— TW ELFTH DISTRICT (amounts in millions of dollars) Bank rates on short-term Total U.S. Demand Loans time business deposits Gov’t and loans* discounts securities adjusted8 deposits Condition Items of all member banks7 t ea r and month 1929 1931 1933 1935 1937 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1954 April M ay June July August September October November December 1955 January February March April 2,239 1,898 1,486 1,537 1,871 1,967 2,130 2,451 2,170 2,106 2,254 2,663 4,068 5,358 6,032 5,925 7,093 7,866 8,839 9,220 9,418 495 547 720 1,275 1,270 1,450 1,482 1,738 3,630 6,235 8,263 10,450 8,426 7,247 6,366 7,016 6,415 6,463 6,619 6,639 7,942 1,234 984 951 1,389 1,740 1,983 2,390 2,893 4,356 5,998 6,950 8,203 8,821 8,922 8,655 8,536 9,254 9,937 10,520 10,515 11,196 1,790 1,727 1,609 2,064 2,187 2,267 2,360 2,425 2,609 3,226 4,144 5,211 5,797 6,006 6,087 6,255 6,302 6,777 7,502 7,997 8,699 9,045 9,001 9,049 8,989 8,977 9,054 9,048 9,343 9,422 6,903 6,991 6,981 7,190 7,574 7,610 8,014 8,089 7,973 10,190 10,045 10,087 10,310 10,257 10,463 10,749 10,937 11,158 8,234 8,306 8,428 8,444 8,501 8,555 8,651 8,596 8,663 9,510 9,612 9,696 9,657 7,998 7,693 7,390 7,756 11,246 10,945 10,733 11,060 8,725 8,765 8,837 8,833 Member bank reserves and related items10 Reserve bank credit11 — + — + — + + + + + + — + — ’ 3.2Ó' 3.35 3.66 3.95 4.14 4.01 4.14 ’ 4.08’ + + + —- + — + + + — + + + — 4.01 3.98 — + + + 34 21 2 2 1 2 2 4 107 214 98 76 9 302 17 13 39 21 7 14 2 Coin and Commercial Treasury currency in operations12 operations12 circulation11 0 - 154 - 110 - 163 90 - 192 - 148 - 596 -1,980 -3,751 -3,534 -3,743 -1,607 - 510 + 472 - 930 -1,141 -1,582 -1,912 -3,073 -2,448 b 23 - 154 - 150 - 219 - 157 - 245 - 420 -1,000 -2,826 [-4,486 -4,483 -4,682 -1,329 - 698 - 482 + 378 +1,198 +1,983 +2,265 +3,158 +2,328 - + + + + 5 9 21 29 18 16 9 1 0 + 34 15 10 60 - 324 148 254 307 28 170 138 244 127 381 136 277 170 12 + 196 + 142 + 342 + 175 + - 150 26 401 306 + + + 77 57 362 261 + + + + + + + + + + + + + + + + + Reserves Bank debits 1ndex 31 clties*» » (1947-49» 100)* 6 48 18 14 3 31 96 227 643 708 789 545 326 206 209 65 14 189 132 39 30 175 147 185 287 549 584 754 930 1,232 1,462 1,706 2,033 2,094 2,202 2,420 1,924 2,026 2,269 2,514 2,551 2,505 42 28 18 25 32 30 32 39 48 60 66 72 86 95 103 102 115 132 140 150 153 7 36 15 3 7 8 23 27 23 2,477 2,432 2,413 2,308 2,317 2,368 2,364 2,440 2,505 150 143 157 145 154 152 150 158 173 79 13 1 15 2,481 2,447 2,418 2,432 161 166 177 165 1 Adjusted for seasonal variation, except where indicated. Except for department store statistics, all indexes are based upon data from outside sources, as follows: lumber, various lumber trade associations; petroleum, cement, copper, and lead, U.S. Bureau of Mines; wheat flour, U.S. Bureau of the Census; electric power, Federal Power Commission; nonagricultural and manufacturing employment, U.S. Bureau of Labor Statistics and cooperating state agencies; retail food prices, U.S. Bureau of Labor Statistics; carloadings, various railroads and railroad associations; and foreign trade, U.S. Bureau of the Census! 2 Daily average. 8 N ot adjusted for seasonal variation. 4 Excludes fish, fruit, and vegetable canning. * Los Angeles, San Francisoo, and Seattle indexes combined. 8 Commercial cargo only, in physical volume, for Los Angeles, San Francisco, San Diego, Oregon, and Washington customs districts; starting with July 1950, “ special category” exports are excluded because of security reasons. » Annual figures are as of end of year, monthly figures as of last Wednesday in month or, where applicable, as of call report date. * Demand deposits, excluding interbank and U.S. G o v ’t deposits, less cash items in process of collection. M onthly data partly estimated. 9 Average rates on loans made in five m ajor cities during the first 15 days of the month. 10 End of year and end of month figures. 11 Changes from end of previous month or year. 12 Minus sign indicates flow of funds out of the District in the case of commercial operations, and excess of receipts over disbursements in the case of Treasury operations. 13Debits to total deposits except interbank prior to 1942. Debits to demand deposits except Federal Government and interbank deposits from 1942. r— Revised.
@FedFRASER