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BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
(For Immediate Release)

H.12

August 7» 1951

CHANGES IN COMMERCIAL AND INDUSTRIAL LOAMS, BY INDUSTRY AND PURPOSE
The decrease of 89 million dollars in commercial, industrial, and agricultural loans at weekly reporting member banks during the week ended July 25
included decreases in loans to wholesale and retail trade and sales finance
companies. These decreases exceeded the increases in loans to public utilities
and to manufacturers of metals and metal products.
In a somewhat smaller sample of loans classified as to purpose, there
was a further increase in loans for defense and defense-supporting activities
totaling hd million dollars while non-defense loans decreased 88 million.
The principal changes in loans classified by type of business, during
the week and since the end of March, were as follows:

Business of Borrower
Manufacturing and minings
Fbod, liquor, and tobacco
Textiles, apparel, and leather
Metals and metal products
Trade — wholesale and retail
Commodity dealers
Sales finance companies
Public utilities and transportation

Week
Change
ended
since
July 25
March 28
(In millions of dollars)
—

-

+
—

-

+

10
10
13
33
2
29
28

-372
+129
+353
- 36
—U56
+ 7
+213

In addition to the usual table showing changes for the week by industry
of borrower, purpose of loans, and Federal Reserve District, there is also attached
a summary table showing the monthly changes since a sample of the largest banks
began reporting these data at the request of the National Voluntary Credit
Restraint Committee.
The summary table shows that loans to commodity dealers and to manufacturers of food, liquor, and tobacco have decreased in every month since the series
was started* On the other hand, loans to manufacturers of textiles, apparel, and
leather, to manufacturers of metals and metal products, to "other" manufacturing
and mining borrowers, and loans to public utilities have increased in every month.
Loans to wholesale and retail trade and to sales finance companies increased
during April and May but decreased during June and July.
Changes in loans classified as to purpose showed increases in defense
loans every month. Non-defense loans increased somewhat in April and June but
decreased by larger amounts during May and July; however, repayments of nondefense loans were greatly under-reported in the early weeks of the survey.
During these four months commercial, industrial, and agricultural loans
at all weekly reporting member banks have decreased 256 million dollars. During
the same period the change in loans classified by type of business of borrower
was nominal. This indicates that the industrial categories showing increases are
probably overstated and those showing decreases, understated. The difference
between the change in classified loans and in total commercial, industrial, and
agricultural loans at all weekly reporting member banks may be due in part to the
decline in loans at banks not included in the classification sample and to the
decline of smaller loans in the sampled banks. However, it is probable that the
difference is largely due to the coverage of new loans being more complete than
the coverage of repayments, particularly in some of the earlier weeks of the
series, when some banks were classifying only their new loans and not their repayments. However, this is to be expected to a certain extent at all times,
since a loan may be large enough to classify at the time it is made, but its
repayments may escape the classifier if made over a period of time.




CHANGES IN COMMERCIAL AND INDUSTRIAL LOANS OF A SAMPLE OF WEEKLY REPORTING MEMBER BANKS
BY INDUSTRY, PURPOSE, AND FEDERAL RESERVE DISTRICT,
WEEK ENDED WEDNESDAY, JULY 25, 1951

H. 12 (a)

Business of Borrower
Manufacturing and miningj
Food, liquor, and tobacco
Textiles, apparel, and leather
Metals and metal products (including
machinery & transportation equipment)
Petroleum, coal, chemicals, and rubber
Other manufacturing and mining
Trade $
Wholesale
Retail
Commodity dealers
Sales finance companies
Public utilities (including transportation)
Construction
All other types of business
Net change of classified loans*/
To balance with net change in weekly
reporting series
Net change in commercial, industrial,
and agricultural loans

(in millions of dollars)
All
New
Phila- CleveDistricts Boston York delphia land

RichAtlantaj Chicago
mond

-10.lt
- 9.5

- 1.1 - 7.7 - 2.2 + .3 - 1.5 - .6 -

+13.3
- 1.3
- 2.9

+ 2.3 + 3.8 + 1.6 + 3.0 — .2 + 3.5 - .1
—
+ 1.1 - 1.8 - .2 + .1 -

(
'J
(-32.5)
- 2.2
-28.5
+28.0
+ .5
+ 5.2 1
-Uo.3

+
+
-

1.0
.t
i
5.2
1,0
.3
.1
.2
I.8
t

. t + 1.1
I
.9 - .2
.1
— -

.7

I
- 2.3 - .3 + .2 + . t
. t + .6
I
- 9.3 - .3
- 5.6 + l.lt + 2.2 + 1.0
-31^3 - 2,It - 6.1 - 2.It
+21.1 - .2 + 5.0 + .5
+ 1.2
+ .5 - .5
+ 6, i + .2 - .8 + .2
t
-23.5 - 3.1 + 2.it - .1

St. Minne- Kansas
San
Dallas
Francisco
Louis apolis City

- 2.0
- .t
I

- It.3 + 1.2 - 3 . 5 - 3.0 +

. 5 + 1.0
.2
— -

-

.6
.2

+ 5.1
+ .3

+ 1.0
- .1
- .t
i

+ 2.0 + .1 3.3 - .2 + 1,7 - 1.0 +

.1
.3 + .k
.2 +1.7

- .5
- 1.8
- .8

+ .6
+ *8
-2,8

—
*
*
—
+
—
+
-

.7 - 1.2 - .2 - .2 - * 8 ( , ,
)
.3
- .2 - 1,0 - .7 - 1 . 9 (- 3.b)
.6 - .8 + 2.6 - it.2 + 3.1 + .8
+ .t
i
.8 - .1 + 1 . 1
.7
+14.5
.7 + 3.1 + .5 + .1 - 1 . 5
- 2.5
— —
.2 — .6 - . t - .2 + .8
i
.5
- 1.5 - .1 - .1 + 1.5
3.2
+ 7.U - 3.7 - 5.9 + 3.1 - 7.3

- 7.1
„ 2*6
+ 3.1
+ .3
+ 1.5
- .2
- .9
- 1.9

-1*8.7

- 1.2 -11.5 - 3.9 - 3.1t - 3.9

- 1.8

- 2,it - 1.3 - 2.1 - l.lt

- 1.7

-lit.l

-89.0

— 6.0 -35.0 - 7.0 - 1.0 - I . 0 - 5.0
t

+ 5.0 - 5.0 - 8.0 + 2.0

- 9.0

-16,0

-

+ 1.7

Purpose Classification
Defense contracts
+18.7
+ 1.1
+2,9 - .1
+ 1.7 + 8.8 + 1.8 + 2,It
- Defense-supporting activities t
Plant and equipment
+ .3 +20.0 - .2 + I , 7 + .2
+25.3
t
•i
t + ,1 + .2 +
All other
—
+ .2 + .3 + 3.2 + .3
—
+ . t — .1
I
+ 3.7
Non-defense activitiest
Inventory and working capital
- 6,6 -60.5 - 5.1 - 7.9 - 1.1 - 3.8
+ 1.6 - 1.6 -98.9
Plant and equipment
- .2 + 5.1 + .1 + .7 + .3 - .2
+ 9.2
+ 1.5 + .3 Retirement,of non-bank debt and
• w
- .6
preferred stock
+ 6.8
+ I. 3
t
+ .1
- 1.1 - 1,8 +
— — —
All other (for loans classified)
— il
«t
- .7 + .2
- 5.5
Net change of classified loansV*
+ 2.It - .1 - 3.2
+ 7.1 - 3.7 - I . 8 -23.5 - 3.1
t
-1+0,7
1/ About 220 weekly reporting member banks are reporting changes in their larger loans as to industry and purpose;
of total commercial, and industrial loans of. all weekly reporting member banks and about 75 per cent of the se
* * - cent
"


-—

- 1.2

- -

+ .1
+ 1.0

- 7.9
+ .5

- 3.1
+ .5

.1 + .2
— 1,6

5.8 + 2.9
.3 + .9
— -

- —

.1 + 1.8
5.9 + 3.0

.t
i
mm mm

+

l.l

- $6
- 7.3

—

- 2,1
- 1.9

of all commercial banks.

CHANGES IN COMMERCIAL AND INDUSTRIAL LOANS OF A SAMPLE OF WEEKLY REPORTING MEMBER BANKS
BY INDUSTRY AND PURPOSE, FOR THE FOUR MONTHS ENDED WEDNESDAY, JULY 25, 1951
(In millions of dollars)
i months '
t
Four or five weeks ended
Business of Borrower
'
totals
April 25^ May 30 1 June 27
July 25
Manufacturing and minings
Food, liquor, and tobacco
-125.8
-128.1*
-371*5
-77.it
-39.9
Textiles, apparel, and leather
+2lw2
+61*, 1
+13.6
+129.2
<27.3
Metals and metal products (including machinery & transportation equipment)
+ 8.0
+169.9
+78.0
+97.3
+3 53; 2
Petroleum, coal, chemicals, and rubber
+10,2
+21*. 0
- .1
+13.9
+ 1*8.0
Other manufacturing and wining
+ 82.)
+ 8.6
+ 2,5
+1*8.9
+22,3
Trade — wholesale and retail
+66,8
-10,0*
+ 5.2*
- 36,3
-98.3
Commodity dealers
-1*56.0
-168.1*
-135.1
-117.7
-31*. 8
Sales finance companies
+ 6,8
+17.7
+1*7.9
- 3.0
-55.8
Public utilities (including transportation)
+213.1
+19.1
+83.9*
+71.8*
+38.3
Construction
) +30.8
+ .3
+ 2; 8
- 2,9* ) +21.5*
(+ 3 2 U
All other types of business
-20.1*
Net change of classified loansl/
+
*9
- 9.0 * +250,3*
-55.1
-185.3
To balance with net change in weekly reporting series
-256.9
-70,0*
-19.9
-88.7
-78.3*
Net change in commercial, industrial, and agricultural loans
-256.O
+172.0
-75.0
-271*. 0
-79.0
Purpose Classification^/
Defense contracts
+66,8
+111.6
+67.8
+319.8
+73.6
Defense-supporting activities $
Plant and equipment
—
+165.2
+66,1*
+19.9
+78.9
All other
— —
+ 1*8.0
+*.*
181
+ 5.5
- 5.9
Non-defense activities $
Inventory and working capital
+26.0
-108.7
-1*35.3
-1*9.1
-303.5
Plant and equipment
—
+13I.0
+ 6,3
+51.0*
+73.7*
Retirement of non-bank debt and preferred stock
+
.6
-ll*.6
- 2,1*
+ 6,1*
+11.2
All other (for loans classified)
+ 2,8*
- 70.8
- * * 8*
11.
-23.1*
- 5.1*
Net change of classified loans1/ §/
+80,1
+10,0*
+161,5
-181.6
+253.0*
i
Revised; cumulative totals for May and June reflect minor revisions in some items,
l/ See footnote on preceding table regarding current coverage. During April and most of May the coverage was somewhat smaller,
2/ During April and early May, many of the banks were classifying only the new loans, and not repayments, as to purpose. The purpose
classification, "Defense-supporting activities", was not generally used prior to the week of May 16,
H

* 1 2 v3'