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BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM H„12 (For Immediate Release) A p r i l 9, 1952 CHANGES I N COMMERCIAL AND INTOSTRIAL LOANS, BY INDUSTRY AND PURPOSE Commercial, i n d u s t r i a l , and a g r i c u l t u r a l l o a n s a t weekly r e p o r t i n g member banks d e c l i n e d by $192 m i l l i o n during t h e week e n d e d A p r i l 2 , t h e l a r g e s t weekly d e c r e a s e s i n c e A p r i l 19U9. Repayments of l o a n s of $92 m i l l i o n by m a n u f a c t u r e r s of f o o d , l i q u o r , and tobacco products* $>33 m i l l i o n by pu i c u t i l i t i e s , $27 m i l l i o n by m a n u f a c t u r e r s of petroleum, c o a l , chemicals, and rubber p r o d u c t s , and $22 m i l l i o n by commodity d e a l e r s were t h e p r i n c i p a l f a c tors in this decline. The d e c l i n e s i n l o a n s to m a n u f a c t u r e r s of food, l i q u o r , and tobacco p r o d u c t s and t o m a n u f a c t u r e r s of petroleum, c o a l , chemicals, and rubber p r o d u c t s were t h e l a r g e s t weekly d e c r e a s e s i n t h e s e c a t e g o r i e s s i n c e a sample of t h e l a r g e s t banks began r e p o r t i n g t h e s e d a t a l a s t s p r i n g . Nominal i n c r e a s e s occurred i n f i v e i n d u s t r i a l c a t e g o r i e s . Changes i n loans during t h e week and s i n c e t h e y e a r - e n d were as follows; Business of Borrower Manufacturing and minings Food, l i q u o r , and tobacco T e x t i l e s , a p p a r e l , and l e a t h e r Metals and metal p r o d u c t s Petroleum, c o a l , chemicals, and rubber Other manufacturing and mining Trade — wholesale and r e t a i l Commodity d e a l e r s S a l e s f i n a n c e companies P u b l i c u t i l i t i e s and t r a n s p o r t a t i o n Construction Other t y p e s of b u s i n e s s C l a s s i f i e d changes - n e t U n c l a s s i f i e d changes - n e t Met change i n commercial, i n d u s t r i a l , and a g r i c u l t u r a l l o a n s Week ended . Since . A p r i l 2P/ December 262/ ( i n m i l l i o n s of d o l l a r s ) - 92 + 2 + 5 - 27 + 6 - 9 - 22 + 7 - 33 + 6 - 3 -160 - 32 -192 -U20 - 10 -150 +59 7 -830 purpose C l a s s i f i c a t i o n Defense Non-defense p / p r e l i m i n a r y ; see f o o t n o t e on a t t a c hled t a b l e . I n a d d i t i o n t o t h e weekly t a b l e , t h e r e i s a l s o a t t a c h e d a summary t a b l e showing t h e changes during March compared w i t h p r e c e d i n g p e r i o d s c o v e r i n g t h e f u l l y e a r s i n c e a sample of t h e l a r g e s t banks began r e p o r t i n g changes i n t h e i r l a r g e r l o a n s a c c o r d i n g t o i n d u s t r y and purpose c l a s s i f i c a t i o n * In some r e s p e c t s March r e f l e c t e d a r e v e r s a l of January and February t r e n d s . Loans t o t h e w h o l e s a l e and r e t a i l t r a d e , t o s a l e s f i n a n c e companies, and t o p u b l i c u t i l i t i e s showed monthly i n c r e a s e s f o r t h e f i r s t time s i n c e December. Loans t o t h e c o n s t r u c t i o n i n d u s t r y showed a nominal monthly i n c r e a s e f o r t h e f i r s t time s i n c e J u l y . Repayments of l o a n s t o m a n u f a c t u r e r s of f o o d , l i q u o r , and tobacco p r o d u c t s were somewhat l a r g e r i n March than t h e two p r e vious months, w h i l e repayments of l o a n s t o commodity d e a l e r s continued a t about t h e same r a t e . H.12 Page 2 Loans t o manufacturers of metals and metal p r o d u c t s , t o manufact u r e r s or producers of petroleum, coal, chemicals, and rubber, and to "other" manufacturing and mining i n c r e a s e d during barch, as they had i n p r a c t i c a l l y every previous month s i n c e t h e s e r i e s was s t a r t e d . U n c l a s s i f i e d loans showed a nominal i n c r e a s e i n March, t h e f i r s t monthly i n c r e a s e i n t h e h i s t o r y of t h e s e r i e s and very p o s s i b l y r e p r e s e n t i n g numerous small l o a n s made f o r t h e payment of income t a x e s . For t h e year a s a whole, t h e i n c r e a s e i n commercial l o a n s has been approximately t h e i n c r e a s e i n loans to manufacturers of m e t a l s and metal p r o d u c t s . About t w o - t h i r d s of t h e loans c l a s s i f i e d as t o purpose have been f o r defense and defense-supporting a c t i v i t i e s . H. 12(a) CHANGES IN COMMERCIAL AND INDUSTRIAL LOANS OF A SAMPLE OF WEEKLY REPORTING MEMBER BANKS BY INDUSTRY, PURPOSE, AND FEDERAL RESERVE DISTRICT, WEEK ENDED WEDNESDAY, APRIL 2 , 1952 (In m i l l i o n s of d o l l a r s ) All DisNew P h i l a - Cleve- RichS t . Minne- Kansas San FranBusiness of Borrower t r i c t s p / Boston York d e l p h i a land mond Atlanta Chicago Louis a p o l i s C i t y Dallas cisco p / Manufacturing and miningj Food, l i q u o r , and tobacco - 3.5 + .6 -91.6 + .it -58.3 - 2.5 - .7 - .8 -16.6 1#8 - 3 . 5 it. 6 ,3 T e x t i l e s , a p p a r e l , and l e a t h e r - 3.9 + 2.2 + + 8.9 w .8 - 1.0 ,1 — ,1 - .3 .1 .5 ,9 Metals and metal products ( i n c l u d i n g machinery & t r a n s p o r t a t i o n equipment) + 2 . 0 + 1,3 + . 3 - 3 . 7 + . 3 + 5.2 + .7 + 1.8 + 2,1 — , 3 4 it.O * - 3.3 Petroleum, c o a l , chemicals, and rubber „ . 1 — .8 -27.1 — it.l w - 1 5 . 9 4- . 3 - 3 . 9 .5 - 1.6 .1 .it Other manufacturing and mining + 2.8 + 6.8 - . 6 + .2 - .1 + 5*5 + + .8 .1 5.0 . 3 4- , 3 .7 Trade $ Wholesale .it - 1 . 3 + . 2 4- . 6 + . 3 ) + .5 + .1 ( .2 + .it - .5 Retail - 2.3 r8-9) - 2 + 0 - .it - 1 . 0 + .it .8 — 1.6 ( " . 1 ) + 2 . 7 - 2.3 .5 Commodity d e a l e r s - 2.0 -21.9 + - 1.7 - . 2 + .it + . 2 .8 2.6 - 1.9 7.9 -3.5 3.5 S a l e s f i n a n c e companies + 1 . 1 + l.i* - 1.6 + 3 . 0 + 3.8 + 6.5 + .6 4- .3 4- 1.2 - 5.7 + 1 . 3 + 1.1 Public u t i l i t i e s (including t r a n s p o r t a t i o n ) - 1.8 -33.1 -51.1 4" , 3 1.1 + 2 , 0 — .1 1.1 .5 - .3 + • 6 Construction + + 6.1 + 2,2 4.1 .2 - .2 4 .5 " + 1 . 0 + . 8 4- .2 .3 4- 1 . 5 .3 All o t h e r types of b u s i n e s s + . 1 - 3 . 0 + . 2 4- l . l t - 1 . 5 - 3.1 4- 2.2 + .it - .it - 1 . 9 .3 .3 Net change i n c l a s s i f i e d loans}_/ - 8.1 -160.2 + 1.5 - 9 2 . 7 - It. 9 — i t . l + 3 . 6 8 . 6 4- 1.1 - 8 . 8 -31.8 2.9 it. 5 U n c l a s s i f i e d changes - net + . 1 -18,3 - 1.1 + .it -31.8 - it. 2 - .it •f 1.9 + . 8 8.1 .9 1.5 .5 Net change i n com»l,ind»1,& a g r ' l loans - 1 9 2 . 0 - 8.0 -111,0 + it.O + 1.0 - 6.0 - 5.0 - 6.0 -11,0 - 3 6 . 0 - 9 . 0 -f 3 . 0 - 8 . 0 Purpose C l a s s i f i c a t i o n Defense c o n t r a c t s +10.5 . 1 + 6,8 + . 2 1.1 .1 * 4- 2 . 3 4- 1.6 - . 8 4 . 3 4- 1 . 0 + .it Defense-supporting a c t i v i t i e s j P l a n t and equipment - 1.2 -20.9 -f . 1 8.6 — .1 - 9 . 7 + .6 .1 .1 — • 1 - .it 1.3 All other + .6 . 2 + 3 . 0 - . 1 •f . 8 + . 2 •f . 3 + 1.1 3.8 - .7 Non-defense a c t i v i t i e s j I n v e n t o r y and working c a p i t a l - 6.9 -11*2,3 - 8 2 , 0 - 5.2 4- 5 . 5 + . 7 4. .1 - 7 . 9 .it -30.6 .it 9.5 6.5 P l a n t and equipment + , 1 4- . 1 - . 3 - 3.i+ 4 1.3 * . 5 - L 5 - .it + .It + 1 . 9 .8 ,7 Retirement of non-bank debt and preferred stock .6 - 1.1 .2 4- 1.2 — ,1 - .it A l l o t h e r ( f o r loans c l a s s i f i e d ) + .8 - 5.2 - It.l + —— 4- . 3 - .1 .9 + .9 .1 .3 - .7 + .6 Net change i n c l a s s i f i e d loans}/ - 8.1 4 1.5 * - 2,9 -160.2 - it. 5 - 3 1 . 8 - 8 , 6 4- 1.1 - 8.8 - 9 2 , 7 - U.9 - It.l + 3 . 6 p / P r e l i m i n a r y } f i n a l t o t a l s w i l l appear i n the F.R. B u l l e t i n and f i n a l San Francisco D i s t r i c t f i g u r e s appear i n a r e l e a s e of the Reserve Bank, l / About 220 weekly r e p o r t i n g member banks are r e p o r t i n g changes i n t h e i r l a r g e r loans as to i n d u s t r y and purpose; these banks hold n e a r l y 95 P e r p c e n t of t o a l l weekly r e p o r t i n g member banks and about 75 per car <•>? these of a l l comm&rciMl banks, i http://fraser.stlouisfed.org/ t a l commercial and i n d u s t r i a l loans : Federal Reserve Bank of St. Louis mmmrn — e l . • * • • w w mm mm —— • 4- H. 12(b) CHANGES IN COMMERCIAL AND INDUSTRIAL LGAlw OF A SAMPLE OF WEEKLY REPORTING MEMBER BANKS BY INDUSTRY AND PURPOSE, FOR THE TWELVE MONTHS ENDED WEDNESDAY, MARCH 2 6 , 1 9 5 2 ( i n m i l l i o n s of d o l l a r s ) 4 weeks 4 weeks 5 weeks 6 momths ended ended ended ended December 26 J a n u a r y 30 February 2J March 26 12 months * totals 3 months ended June 27 Manufacturing and mining* Food, l i q u o r , and tobacco T e x t i l e s , a p p a r e l , and l e a t h e r Metals and metal products ( i n c l u d i n g machinery & t r a n s p o r t a t i o n e q u i p , ) • Petroleum, c o a l , chemicals, and rubber Other m a n u f a c t u r i n g and mining +267.6 -228.7 +2,096,8 +365.8 +256.1 -243.1 +115.6 +275.2 + it 8 . 1 + 60,0 +932.2 -360,8 +873.3 +125.4 +141.0 -118.2 - 38.7 +520.1 + 39.3 + 3.9 -112.5 + 47.7 +140.7 +103.9 + 18.5 -190.8 + 7.5 +287.5 + 49.1 + 33.0 Trade — wholesale and r e t a i l Commodity d e a l e r s S a l e s f i n a n c e companies Public u t i l i t i e s (including t r a n s p o r t a t i o n ) Construction A l l o t h e r t y p e s of b u s i n e s s Net change i n c l a s s i f i e d loans U n c l a s s i f i e d changes - n e t Net change i n commercial, i n d u s t r i a l , and a g r i c u l t u r a l loans - It5.6 - 31.7 -232,3 +516.2 - 89.8 + 7.1 +2,881.8 -719.8 +2,162.0 + 62.0 -421.2 + 62,6 +171.8 + 44.2 + 8.0 +186,2 -168,2 < 18,0 + + 16.2 +722.2 + 29.6 +350.8 - 98.1 + 37.0 +2,768.8 -396.8 +2,372 . 0 -155.0 - 92.6 -319.5 - 53.4 - 29.6 - 48.8 -292.5 -139.5 -432.0 - 5.0 -120.9 - 59.4 - 10,0 - 6,9 + 18,2 + 14.3 - 17.3 - 3.0 + 36.2 -119.2 + 54.4 1 + 54.0 + .6 - 7.3 +205.0 + 2,0 +207,0 +1,032,8 +246.2 +468.9 +139.9 + 72.3 +105,5 +836.1 +268.1 + 98.8 + 53.9 +526.7 +135.8 +102,9 + 19.6 + 22.3 + 36.1 • 85,4 + 22.7 +719,8 +220,8 + 36.1 -101,3 -131.8 +134.0 - 10,6 - 47.4 +343.1 +1,549.0 + 43.7 + 29.9 + 18.5 -530.9 + 1.3 + 8.7 - 34.0 -126.4 + 28.9 + 3.9 - 22.8 - 10.1 + 12.9 + 4.2 - 15.6 +2,772.5 -292.5 + 14.3 +205.0 Business of Borrower Purpose C l a s s i f i c a t i o n ^ / Defense c o n t r a c t s Defense-supporting a c t i v i t i e s $ P l a n t and equipment All other Non-defense a c t i v i t i e s : I n v e n t o r y and working c a p i t a l P l a n t and equipment Retirement of non-bank debt and p r e f e r r e d s t o c k A l l o t h e r ( f o r loans c l a s s i f i e d ) Net change i n c l a s s i f i e d l o a n s j V B / +3,042.4 l/ See f o o t n o t e on preceding t a b l e r e g a r d i n g c u r r e n t coverage. 2/ ~~ During Apii 1 and e a r l y May, many of the banks were c l a s s i f y i n g only the new l o a n s , and not repayments, as t o purpose. s i f i c a t i o n , '"Defense-supporting a c t i v i t i e s " , was n o t g e n e r a l l y used p r i o r t o the middle of May. During April and most of May the coverage was somewhat s m a l l e r . The purpose c l a s -
