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H.12 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SY6TEM (For Immediate Release) November 27, 1951 CHANGES IN COMMERCIAL AND INDUSTRIAL LOANS, BY INDUSTRY AND PURPOSE The p r i n c i p a l f a c t o r s i n t h e p r e v i o u s l y r e p o r t e d $181 m i l l i o n i n c r e a s e 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 a t weekly r e p o r t i n g member banks during t h e week ended November lii were i n c r e a s e s of ^52 m i l l i o n t o commodity d e a l e r s , $50 m i l l i o n To s a l e s f i n a n c e companies, $1*2 m i l l i o n t o manufact u r e r s of m e t a l s and metal p r o d u c t s , and $37 m i l l i o n t o t h e wholesale and r e t a i l t r a d e . These were p a r t i a l l y o f f s e t by d e c r e a s e s of $33 m i l l i o n i n l o a n s t o p u b l i c u t i l i t i e s and $19 m i l l i o n t o m a n u f a c t u r e r s of t e x t i l e s , a p p a r e l , and leather. The i n c r e a s e s i n l o a n s t o commodity d e a l e r s were l a r g e l y i n t h e San F r a n c i s c o , New York, D a l l a s , and S t . Louis d i s t r i c t s . The s a l e s f i n a n c e comp a n i e s ' i n c r e a s e was t h e l a r g e s t weekly change in t h i s b u s i n e s s c a t e g o r y 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 data i n l a t e March a t t h e r e q u e s t of t h e N a t i o n a l Voluntary C r e d i t R e s t r a i n t Committee. The i n c r e a s e i n l o a n s t o m a n u f a c t u r e r s of m e t a l s and metal p r o d u c t s was i t s l a r g e s t weekly i n c r e a s e i n over a month. Trade l o a n s showed t h e l a r g e s t change i n n e a r l y t h r e e months; about t w o - t h i r d s of t h i s i n c r e a s e was to r e t a i l e r s . Loans to p u b l i c u t i l i t i e s showed t h e l a r g e s t weekly d e c r e a s e i n t h i s b u s i n e s s c l a s s i f i c a t i o n s i n c e t h e s e r i e s was s t a r t e d . Changes i n l o a n s c l a s s i f i e d by t y p e of b u s i n e s s , during t h e week and s i n c e m i d - y e a r , were a s f o l l o w s i Business of Borrower ' Manufacturing and m i n i n g : 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 m e t a l p r o d u c t s Petroleum and o t h e r Trade — w h o l e s a l e and r e t a i l Commodity d e a l e r s Sales 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 C o n s t r u c t i o n and o t h e r C l a s s i f i e d changes U n c l a s s i f i e d changes Net changes i n commercial, indust 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 November ill June 27 (In m i l l i o n s of d o l l a r s ) +26 - 19 + U2 + 25 +37 + 52 +50 - 33 + 6 +186 ~ 5 +618 -250 +59U +195 + 81* +^79 - 67 +287 - 7u +1,865 -237 +181 +1,628 Changes i n l o a n s c l a s s i f i e d as t o purpose showed an i n c r e a s e of only $11 m i l l i o n f o r d e f e n s e and d e f e n s e - s u p p o r t i n g a c t i v i t i e s and a $175 m i l l i o n increase in non-defense loans. CHANGES IN COMMERCIAL AND INDUSTRIAL LOANS OF A SAMPLE OF WEEKLY REPORTING MEMBER BANKS BY INDUSTRY, PURPOSE, AND FEDERAL RESERVE DISTRICT, WEEK ENDED WEDNESDAY, NOVEMBER 111, 1951 (In m i l l i o n s of d o l l a r s ) New All P h i l a - Cleve- RichS t . Minne- Kansas San Business of Borrower D i s t r i c t s Boston York d e l p h i a land mond A t l a n t a Chicago Louis a p o l i s C i t y D a l l a s Francis co Manufacturing and minings Food, l i q u o r , and t o b a c c o —— + . 1 +13.6 + 1.2 +25.6 + .2 + 3*6 + 3.1* + 2 . 0 + . 6 + 3.8 - 2*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 -18.5 - 3.1* - 7.1+ - 1 . 3 - 1.2 .1* + .7 - 2 . 7 - 1.1* - .1* - . 1 - .1* - . 5 Metals and m e t a l 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) +1*2.0 + 1 . 8 +21.1 - .1* + 6 . 1 + . 1 + .6 + 8.9 + 1.0 + 1.5 - .2 + 1.5 Petroleum, c o a l , c h e m i c a l s , and rubber —— + .1* + . 6 + 6.5 - .1* + . 1 - .1 + 2.5 - .1 + 1.9 - .7 + .1* + 1.9 Other m a n u f a c t u r i n g and mining —— +18.1 + 5 . 0 - 1 . 7 + 1*.5 + . 3 + .2 + 1.6 + . 1 + . 1 - .3 + 2.2 + 6.1 Trade; Wholesale + . 5 + 5.3 - . 1 + . 9 - . 3 + .1* + 3.1* + 2 , 0 - 1 . 0 - . 2 ( ' ) + .9 C 7 7 n) (+7 /• v j 7 ) + 1.2 Retail - 1.2 + 8 . 8 + 3 . 9 + 3 . 0 + . 6 - .1* + 7.7 + . 2 + 1.0 + 1.1 c Commodity d e a l e r s + 52.2 + 1 . 8 +12.8 + 2 . 0 + . 1 - . 1 + 1.7 + 3.8 + 7.0 + . 7 + 1.1 +13.8 + 7.5 S a l e s f i n a n c e companies + li.2 +10.8 + 2 . 6 + 9 . 6 + l.l* +1*9.5 + 2.2 + i.i* + 9 . 7 - 1*0 + 1 . 8 + . 8 + 6.0 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 ) + 2 . 0 + .1* + 1 . 0 - . 1 -32.7 - 1.5 -31.1 - . 1 - 2.3 - .1 - .1 - .1 - .7 Construction + .1 - 2.0 + . 1 + 1.1* - . 1 - 2.1 + 1.2 .1* - . 5 - .1* - 1 . 0 - .3 A l l o t h e r t y p e s of b u s i n e s s + 8.2 - . 1 + 8 . 2 + . 3 + 1.8 - 1 . 3 + .2 - . 9 + . 1 + . 1 + 1.5 - 2.2 + .5 Net change of c l a s s i f i e d l o a n s V ' + 2 . 7 +1*7.7 + 6 . 5 +23.5 + .1* +185.9 +1*0.2 + 1**3 +10.3 + 7 . 7 + 1 . 7 +13.1 +27.8 To b a l a n c e w i t h n e t change i n weekly reporting series + 2 . 5 - 3 . 7 + 1 . 5 - , 5 - 2.1* - 1*.9 - 1*.2 - . 3 + .2 + 2.9 - .3 .7 + .3 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 +181.0 + 5 . 0 +1*1*. 0 + 8 . 0 +23.0 - 2 . 0 + l*.o +36.0 +10.0 + 7 . 0 + 2 . 0 +16.0 +28.0 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 + . 6 +11*.1* + . 6 + 1 . 9 - . 8 +26.3 + I*.2 + . 9 + l . l - . 1 + .5 +1.6 + 1.1* Defense-supporting a c t i v i t i e s • P l a n t and equipment —— + .8 -16.8 -13.lt + 2.9 - .2 + 1.5 + .5 - .8 - 1.3 All other - 1.6 - . 1 - 2 . 9 - 1.1 + 1.0 + .7 - .1 + l . l + .3 + .8 - 1.3 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 + 1.1* +52.1 + 6 . 9 +16.5 +163.1 .2 + 3.3 +33.1* + 8 . 0 + 5 . 5 + l.l* +26.2 + 8.9 P l a n t and equipment —— —— + 1.2 - 1.3 + 1.9 + . 1 - 2. It + .1 - 1*.3 + 1.6 + .5 Retirement of non-bank debt and preferred stock - 1.0 + .6 - .2 .6 A l l o t h e r ( f o r loans c l a s s i f i e d ) + . 1 + . 8 + 6 . 2 + 2 . 0 + .1* • + 3 . 6 + 1.3 +13.1 , - 1.5 + .9 - .7 +1*0.2 +10.3 + 7 . 7 + 1 . 7 * Net change of c l a s s i f i e d l o a n s l / +27.8 +13.1 + 2 , 7 +1*7.7 + 6 . 5 +23.5 + «1* + lt.3 +185.9 l / About 220 w e e k l y 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; t h e s e banks hold n e a r l y 95 per cent of t o t a l commercial and i n d u s t r i a l l o a n s o f a l l weekly r e p o r t i n g member banks and about 75 per cent of t h o s e of a l l commercial banks. H. 1 2 ( a ) mm mm mm mm • *.
@FedFRASER