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BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
H#12
,
(For Immediate R e l e a s e )
September 11, 1951
CHANGES IN .COMMERCIAL AND INDUSTRIAL LOANS, BY INDUSTRY AM) PURPOSE
I n c r e a s e s of 30 m i l l i o n d o l l a r s i n loans t o manufacturers of metals and
metal products, 18 m i l l i o n t o p u b l i c u t i l i t i e s , and 11 m i l l i o n t o commodity d e a l e r s
were o f f s e t by d e c r e a s e s of 23 m i l l i o n i n loans t o s a l e s f i n a n c e companies, 20
m i l l i o n to manufacturers of t e x t i l e s , a p p a r e l , and l e a t h e r , and lit, m i l l i o n t o the
•wholesale and r e t a i l t r a d e during t h e week ended August 29* The n e t 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 a t weekly r e p o r t i n g member banks
was a decrease of 1 m i l l i o n , the only weekly decrease during t h e month.
Changes i n loans c l a s s i f i e d by type of b u s i n e s s , during t h e week and
s i n c e the end of March, were as f o l l o w s :
Week
Change
ended
since
B u s i n e s s of Borrower
August 29
March 28
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
Petroleum and other
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
S a l e s f i n a n c e companies
Public 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 and other
Total changes c l a s s i f i e d
( i n m i l l i o n s of d o l l a r s )
+
+
+
+
<+
-
5
20
30
7
lij.
11
23
18
6
-220
+ 75
+560
+160
+77
-367
- I4.O
+290
+20
+
7
+555
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 2J m i l l i o n d o l l a r s 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 decrease of 20
m i l l i o n i n n o n - d e f e n s e loans*
In a d d i t i o n t o the u s u al t a b l e showing changes f o r t h e week by i n d u s t r y
of borrower, purpose of l o a n s , and Federal Reserve d i s t r i c t , 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 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 a t the request of t h e National Voluntary Credit R e s t r a i n t
Committee#
During t h e quarter ended June 27 t h e r e was a r e l a t i v e l y small net change
i n commercial loans • The l a r g e r i n c r e a s e s were i n loans t o manufacturers of metals
and metal products and of t e x t i l e s , a p p a r e l , and l e a t h e r , and t o p u b l i c u t i l i t i e s ;
the only d e c r e a s e s during t h i s quarter were i n loans t o commodity d e a l e r s and t o
manufacturers of f o o d , l i q u o r , and tobacco products, but both c a t e g o r i e s showed
substantial decreases •
During J u l y t h e r e was a decrease of 262 m i l l i o n d o l l a r s i n commercial
loans a t a l l weekly r e p o r t i n g member banks. By i n d u s t r y , according t o the somewhat smaller sample of loans c l a s s i f i e d as t o b u s i n e s s of borrower, t h e r e was a
f u r t h e r decrease of 128 m i l l i o n d o l l a r s i n loans t o manufacturers of f o o d , l i q u o r ,
and tobacco products; and other l a r g e d e c r e a s e s were i n loans t o t h e w h o l e s a l e and
r e t a i l trade and t o s a l e s f i n a n c e companies• There was a continued decrease i n
loans t o commodity d e a l e r s , but i t amounted t o o n l y 35 m i l l i o n d o l l a r s as c o m p a r e d
w i t h 1^21 m i l l i o n i n t h e preceding three months• The o n l y l a r g e i n c r e a s e during
J u l y was 78 m i l l i o n d o l l a r s t o manufacturers of m e t a l s and m e t a l products •
During t h e f i v e weeks ended August 29 t h e r e have been s u b s t a n t i a l i n c r e a s e s 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 i n a l l weeks e x c e p t the
current one; t h e net i n c r e a s e has amounted t o 5UI4- m i l l i o n d o l l a r s . The l a r g e s t
i n c r e a s e was 207 m i l l i o n - t o manufacturers of m e t a l s and metal products . A f t e r
l o u r months of continuous d e c r e a s e s , the t r e n d was r e v e r s e d i n loans t o manufact u r e r s of f o o d , l i q u o r , and tobacco products and t o commodity d e a l e r s , i n d i c a t i n g '
t h e beginning of t h e usual s e a s o n a l borrowing izi t h e l a t e summer and e a r l y f a l l bj*
t h e s e p r o c e s s o r s a n d . d i s t r i b u t o r s . t o f i n a n c e t h e crop movement. Loans t o t h e
wnolesale and r e t a i l t r a c e , which had* d e c r e a s e d
m i l l i o n i n J u l y , i n c r e a s e d 113 ,
milj.xon i n August« The only b u s i n e s s e s showing n e t d e c r e a s e s during August were
loans to manufacturers of t e x t i l e s , a p p a r e l , and l e a t h e r , t o s a l e s f i n a n c e comp a n i e s , and i n the " a l l other" c l a s s i f i c a t i o n . The t e x t i l e d e c l i n e of 5 4 m i l l i o n
o lFRASER
l a r s came a f t e r f o u r months of i n c r e a s e s t h a t had t o t a l e d 129 m i l l i o n .
Loans
Digitizeddfor
http://fraser.stlouisfed.org/
• '
- •'"
{over)
Federal Reserve Bank of St. Louis
CHANGES IN COMMERCIAL AND INDUSTRIAL "LOANS OF A SAMPLE OF WEEKLY REPORTING MEMBER BANKS
BY INDUSTRY, PURPOSE, AND FEDERAL RESERVE DISTRICT,
WEEK ENDED WEDNESDAY, AUGUST 2 9 , 1951
(In m i l l i o n s of d o l l a r s )
All
New
P h i l a - Cleve- RichBan
S t . Minne- Kansas;
Business of Borrower
D i s t r i c t s Boston York delphia land
mond Atlanta Chicago Louis a p o l i s City iDallas, Franci sco
Manufacturing and miningt
+ 1.2
+ 1.0
+ i.h
——
+ 2.5
+
+ 1,1
Food, l i q u o r , and tobacco
+ 5.3
+ 7.it
- 9. it + . 6 - 2.U + 1.2
.it
•»
—
+
T e x t i l e s , a p p a r e l , and l e a t h e r
1.6
f
1
1
.
6
. 1 - 3.3
-19.8
.1
1.6
.6
.1
.1
.it
.7
Metals and metal products ( i n c l u d i n g
+ 2.5
+
+ 2.0
——
machinery & t r a n s p o r t a t i o n equipment)
+ i. 0 +
+ 1.7
+18.1 - . 6 + 2.U
+29.5
.1
.1
.8
+
+
+
+
+ 1.6
+
+
1
.
2
+
Petroleum, c o a l , c h e m i c a l s , and rubber
.6
.2
.1
.6
1.8
.1
.8
1.9
.5
+
+
+
+ ub
Other manufacturing and mining
.2
——
+ 5,1
+ 1.3
.2
.6 ,+ 2 . 2
.1
.1 - .1
.9
Tradej
Wholesale
;• - 2 . 6
.1
- 1 . 0 + .1 + . 1
.1
- 2.5
.6 - .9 + .1
.3
[
1
3
.
6
]
j- 1.2 ) +
+ l.it
Retail
.8
.2
.2
6.it
• 7 + 1.1
• 5 + .1
+
+
——
+
Commodity d e a l e r s
+11,2
——
— 1. C
.2
.8
• 9 +10. it + • 3
.5
. 5 + 1.5
S a l e s f i n a n c e companies
+
+
•
-23.it
- 1.;
5.0 -lb.2 + 3.7
1.1
.8
.it - . 6 - .it - 1 . 7
5.3
+
Public u t i l i t i e s ( i n c l u d i n g t r a n s p o r t a t i o n )
——
——
—
.V
+17.5
.6
+17.2 + • l + 1.1
+ .5
2.5 3.3
.3
——
Construction
+ li.c
- 2.1
- 1.2
.2
.8
.6
1.0
.6
.6 - .3 .5
.9
+
A l l other types o f b u s i n e s s
- l.l
- it.l
- it. 0
.W
• 5 - 9.7 + l . l + 2.1 - 1.7
7 . 7 + . 6 + . 5 - .5
- 2.9
+ 6. c
- 2.3
+ 9.1
Net change of c l a s s i f i e d loanslX
+ 7.2
.2
+ 3 . 1 + 3 . 6 + 1.5
.8
7.5
. 7 - 1.7
To balance w i t h net change i n weekly
+
- It. 1
+ 1.2
- 1.7
- 1.0
reporting s e r i e s
- 1.5
+12.8
- 8.2
1.1
-10.1
,k - 6.5
.3
3.7
Net change i n commercial, i n d u s t r i a l ,
+ 1.0
+ 5.0
and a g r i c u l t u r a l loans
4- 5.0
+12.0
- 1.0
- L o
1 . 0 + 2.0
- 9.0
- 7 . 0 + h>o - 5 . 0 - it.O
Purpose C l a s s i f i c a t i o n
+ 1.8
Defense c o n t r a c t s
+
.2
+17.6
.2
+ 2.9
+ 9.8 .it
#9 + 1 . 6 - . 5
3.it - . 5
Defense-supporting a c t i v i t i e s t
——
——
——
Plant and equipment
+ 1.9
+
+
+ 8.0
.1
+ 5 . 5 + .1
.li
.5 + .3
A l l other
+
- 1.2
+ 1.7
.1
.It + . 1 + .2
Non-defense a c t i v i t i e s j
Inventory and working c a p i t a l
+
+ 1.2
- iw?
- 2.1
-12; 0 + k.h - 1 . 0 - 2 . 2
-15.5
1.9
5.1
.3 - .8 - 1.6
Plant and equipment
+
+
+ it.O +
4- . 7 + .5
- 1.4
+ 7.6
.1
.1
.it + 3.8
.3
.5
Retirement of non-bank and
preferred stock
+
+ l.it
+ .3
+ #9
.1
1.8
.5 + .1 + • 5
A l l other ( f o r loans c l a s s i f i e d )
+
+
+
- 1.2
.2
. 6 - 8,7
- 3.2
-13,1*
.it
.8
.3
.3 + .7
+ 6.0
.8
+ 9.1
.2
— 2.9
.7 - 2.0
Net change of c l a s s i f i e d loans3/"
+ 3.1 + 3.6 + 1.5 - 2.3
7.5
+ 6,9
w iuuwwwjf
r
^
~
i
1 / About 220 weekly r e p o r t i n g member banks are r e p o r t i n g unajigys ill wiu±1 ±<xi gcx iuaiw
61
cent of t o t a l commercial and i n d u s t r i a l loans of a l l weekly r e p o r t i n g member banks and about 75 P * cent of those of a l l commercial banks.
H*12(a)
mmmm
mmmm
:
.
mm
.
.?
•
tmmm
mmmm
mmm
mmmm
— mm
mmmm
mmmm
mmmm
mm mm
CHANGES IN COMMERCIAL AND INDUSTRIAL LOANS OF A SAMPLE OF WEEKLY REPORTING MEMBER BANKS
BY INDUSTRY AND PURPOSE, FOR THE FIVE MONTHS ENDED WEDNESDAY, AUGUST 2 9 , 1951
( i n m i l l i o n s of d o l l a r s )
5 monthst
totals
Business of Borrower
Manufacturing and mining:
Food, l i q u o r , and t o b a c c o
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 and t r a n s p o r t a t i o n equipment)
Petroleum, c o a l , c h e m i c a l s , and rubber
Other manufacturing and mining
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
S a l e s f i n a n c e companies
Public u t i l i t i e s (including transportation)
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 of c l a s s i f i e d l o a n s . ] /
To balance w i t h net change i n weekly r e p o r t i n g s e r i e s
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
3 months
ended
June 27
4 weeks
ended
J u l y 25
5 weeks
ended
: August 29
- 20.4
+151.8
- 54.0
+206.8
+
.+ 29.4
+113.2
+ 89.5
- 46.o
+ 76.6
+ 8.4
- 20.7
-185,3
+554.5
+300.0
+186.2
-168.2
+ 18.0
-262.0
|
+544.0
+400.2
+246.2
+ 73*6
;
+ 80.4
+317.4
+ 70.0
+ 98.8
+ 53.9
+ 66.4
- 5.9
-176.9
+166.4
-303 . 5
- 71.4
-131.8
+134.0
- 10.6
- 47.4
+ 11.2
- 23.4
+ 32.4
+ 9.8
#6
+716.1
+343.1
-181.6
+554.6
-219,7
+ 75; 2
+560.0
+ 2 * 8 . 1
+111.7
+ 76.9
-366.5
- 39.8
+289.7
|+ 19.8
+555.4
-255.4
-243.I
+115.6
+275.2
+ 48.1
+ 60.0
+ 62.0
-421.2
+ 62.6
+174.8
+ 52.2|
1
I
1
i
!
!
!
i
!
-128.4
+ 13.6
+ 78.0
.1
+22.3
- 98,3
- 34.8
- 55.8
+ 38.3
+
-
.3
76.7
-
10.5
Purpose C l a s s i f i c a t i o n ^ /
Defense contracts
Defense-supporting a c t i v i t i e s $
Plant and equipment
A l l other
Non-defense a c t i v i t i e s t
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 other ( f o r loans c l a s s i f i e d )
Net change of c l a s s i f i e d l o a n s ] Y £_/
l/1 See f o o t n o t e on p r e c e d i n g t a b l e r e g a r d i n g c u r r e n t c o v e r a g e .
2/
~~
+ 10.4
i
+258.4
During A p r i l and most of May the coverage was somewhat s m a l l e r *
D u r i n g A p r i l and e a r l y May, many of t h e banks were c l a s s i f y i n g o n l y t h e new l o a n s , and not r e p a y m e n t s , as t o p u r p o s e .
c l a s s i f i c a t i o n , " 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 " , was n o t g e n e r a l l y used p r i o r t o t h e week of May 16*
+152.2
+ 22.0
The p u r p o s e
@FedFRASER