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BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM He 12 (For Immediate Release) October 30, 1951 CHANGES IN COMMERCIAL AND INDUSTRIAL LOANS, BY INDUSTRY AND PURPOSE Borrowings in p r a c t i c a l l y a l l business c l a s s i f i c a t i o n s accounted f o r the increase of $175 million in commercial, i n d u s t r i a l , and agricultural loans at weekly reporting member banks during the week ended October 17, according to a smaller sample of banks that report t h i s additional breakHoin at the r e quest of the National Voluntary Credit Restraint Committee. The principal increases were $6L million to manufacturers of food, liquor, and tobacco products, $5U million to commodity dealers, and $33 million to public u t i l i t i e s (including transportation), A decrease of $36 million was reported in loans to manufacturers of t e x t i l e s , apparel, and leather. Changes in loans c l a s s i f i e d by type of business, during the week and since the end of March when the sample of the largest banks began reporting these data, were as follows: Business of Borrower Manufacturing and mining t Food, liquor, and tobacco Textiles, apparel, and leather Metals and metal products Petroleum and other Trade — wholesale and r e t a i l Commodity dealers Sales finance companies Public u t i l i t i e s and transportation Construction and other Total changes c l a s s i f i e d Week Change ended since October 17 March 28 (in millions of dollars) + 6U - 36 + 13 + 25 + lb + 5it + 2it + 33 +10 +201 +203 - 25 +800 +239 +102 -1^2 +11 +14+9 - 12 +1,625 In the c l a s s i f i c a t i o n as to purpose, shown in the attached table, loans for defense and defense-supporting a c t i v i t i e s increased $38 million, of which $18 million was f o r plant and equipment. Non-defense loans increased $163 million; these include loans to processors and distributors of food products, to sales finance companies, and to a portion of the other business classifications. CHANGES IN COMMERCIAL AND INDUSTRIAL LOANS OF A SAMPLE OF WEEKLY REPORTING MEMBER BY INDUSTRY, PURPOSE, AND FEDERAL RESERVE DISTRICT , WEEK ENDED WEDNESDAY, OCTOBER 17, 1951 ( I n m i l l i o n s of d o l l a r s ) All I New P h i l a - Cleve- RichBusiness of Borrower D i s t r i c t s Bostonj Y o r k d e l p h i a land mond A t l a n t a Chicago Manufacturing and m i n i n g j + 1.2 Food, l i q u o r , and tobacco +63,6 + 2 . 3 +38.2 + 1 . 0 + 2 . 5 + 1 . 0 + it.9 T e x t i l e s , a p p a r e l , and l e a t h e r - 8.It .it - 3 . 5 - 1 1 . 9 - 2 , 6 - 1 . 9 - .it -35.7 Metals and metal products ( i n c l u d i n g + .2 + 1.5 - 2 . 0 + 3.6 + 1.6 - 1.0 machinery & t r a n s p o r t a t i o n equipment) +13.U + 3.9 —— + 2.1 +10.1 Petroleum, c o a l , chemicals, and r u b b e r + ,2 + 6,5 - .3 + .3 + . 5 + .6 + 1.8 + 1.0 + 2.1 + . 1 + 6.0 + .2 Other manufacturing and mining +lit.it Tradet + 2.2 .2 + 1.1 Wholesale + 1 . 9 + 3 . 5 + .it + . 7 { , 1 I A) ^+14.Oj + 1.1 + .6 Retail - l . l + 5.7 - . 2 + k . k - *2 + 2.6 + . 6 — +26,2 + . 8 Commodity d e a l e r s + .U . 8 +53.5 6 .2 S a l e s f i n a n c e companies - 1 . 6 +28.2 + it. 3 + 3 . 8 +2 It.ii - .7 + .1 + 2 . 1 +28.0 + . 1 + . 9 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 ) + 3.1 +33.0 — Construction - . 2 + 2 . 3 + .it + . 3 + . 2 - 2.5 - .5 2.0 + . 1 A l l o t h e r t y p e s of b u s i n e s s +12.6 +lit.2 - 1.8 + .5 - . 7 - it.2 Net change of c l a s s i f i e d l o a n s ! / +200.8 + 1 . 9 +122.6 + 7.7 +33. it + 1 , 0 - .1 + U.8 To b a l a n c e w i t h net change i n weekly + .1 reporting series — - It. 8 - 1 . 9 - 2 8 . 6 + 1.3 - l.it -25.8 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 — +175.0 -+9L.0 + 9 . 0 +32.0 + 1 . 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 + 2.9 + 8.1 + 2 . 1 - 3 . 5 + 2.1 + 1.5 Defense-supporting a c t i v i t i e s • —— P l a n t and equipment - .1 + 1.9 + .it +15.0 + . 2 + 1 . 7 +18. U + .1 + . 1 + 2.1* All other +11.0 - . 2 + 7.2 - 1.1 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 - 1.2 •lit 0,0 - 3.6 - 1.3 +103.7 + 5.2 +lit.3 + 1 . 7 + 2.1 P l a n t and equipment + 2.1 + 6 . 7 —— - +10.7 —— + .it Retirement of non-bank d e b t and -- -—* preferred stock + .9 - .3 - .5 + . 8 + l.it - . 9 - 6 . 0 + . 1 +13.5 + .it A l l o t h e r ( f o r loans c l a s s i f i e d ) +11.7 Net change of c l a s s i f i e d l o a n s i / + U.8 - .1 + 1 . 9 +122.6 + 7 . 7 +33. b + 1 . 0 +200,8 E,12(a) " BANKS s t ; Minne- Kansas San Louis a p o l i s C i t y Dallas F r a n c i s c o + it. 7 - 1.6 — 1.6 - .7 + 2.0 - .7 + 1.7 - 1.1 + 5.7 - 2.5 - l.l + 1.3 + .8 + .2 + .it + .2 + - .3 .3 .2 + it. 7 + .3 + 2,6 q) *9 ) 8.it 1.2 2.3 .7 .7 6.8 —— - .2 - .2 - .3 + .8 - .9 +10.2 + it.2 + .8 - . 5 - .2 — + . 1 - .it + 2.1 -— +15. It + 2 . 1 - 1.8 - .6 + 1.6 .2 .7 .6 .8 + + + + - l.it - 3.1 + it. 2 + .2 + 9.6 +1I.0 - 1.0 + 5.0 + 7.0 +lit.O - + + .9 - .2 + 2.7 - .1 —w - .3 + 2,6 - l.l + .2 + 6.3 - .7 - 2,it + .2 + 1.9 - .5 + 6.8 - »2 + 1# 8 .5 .It .1 — + .2 +15. it + + -- —— +I6.it - .3 — + 2.0 -— — + 2.1 - - + + .9 .8 ( + + + .6 l.it .7 it. 9 l.it 3.3 3.1 it.it + h* h l / About 220 weekly r e p o r t i n g member banks a r e 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 purpose5 t h e s e banks hold n e a r l y 95 P e r ~~ forcent of t o t a l commercial and i n d u s t r i a l l o a n s of 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 b a n k s . Digitized FRASER