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BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM (For Immediate Release) September It, 1951 CHANGES IN COMMERCIAL AND INDUSTRIAL LOAMS, BY INDUSTRY AND PURPOSE An i n c r e a s e i n loans to t h e r e t a i l t r a d e accounted f o r the 12tt m i l l i o n d o l l a r i n c r e a s e in 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 during the week ended August 22. Increases were also r e p o r t e d in loans t o manufacturers of food products and t o commodity d e a l e r s j and t h e r e were decreases i n loans t o s a l e s f i n a n c e companies and 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 . The i n c r e a s e of 128 m i l l i o n d o l l a r s i n loans t o wholesale and r e t a i l trade was e n t i r e l y i n the r e t a i l p o r t i o n ; i t occurred i n p r a c t i c a l l y a l l d i s t r i c t s , w i t h the l a r g e r i n c r e a s e s being r e p o r t e d in the New York and San Francisco d i s t r i c t s $ an i n c r e a s e was reported i n the Chicago D i s t r i c t i n the p r e vious week. Loans t o manufacturers of food, l i q u o r , and tobacco products increased 37 m i l l i o n d o l l a r s , t h e f o u r t h consecutive weekly i n c r e a s e in t h i s category. The 23 m i l l i o n d o l l a r i n c r e a s e i n loans to commodity d e a l e r s was also the f o u r t h consecutive weekly i n c r e a s e . 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 the week and since t h e end of March, were as follows$ Business of Borrower 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 — wholesale and r e t a i l Commodity d e a l e r s Sales 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 o t h e r T o t a l changes c l a s s i f i e d Week Change ended since August 22 March 28 (In m i l l i o n s of d o l l a r s ) + 37 - 17 + 9 + 5 +128 + 23 — 22 -225 + 95 +531 +153 + 91 -378 — 16 + 6 - 21 +272 +26 +11*6 +518 In the c l a s s i f i c a t i o n as t o purpose, loans f o r defense and d e f e n s e supporting a c t i v i t i e s showed p r a c t i c a l l y no change» Non-defense loans increased 1U8 m i l l i o n d o l l a r s , of which lUl m i l l i o n was f o r inventory and working c a p i t a l . CHANGES IN COMMERCIAL AMD INDUSTRIAL LOANS OF A SAMPLE OF WEEKLY REPORTING MEMBER BANKS BY INDUSTRY, PURPOSE, AND FEDERAL RESERVE DISTRICT, WEEK ENDED WEDNESDAY, AUGUST 22, I 9 5 I (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- R i c h S 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 l a n d 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 F r a n c i s c o M a n u f a c t u r i n g and m i n i n g ; Food, l i q u o r , and t o b a c c o +36.5 1 . 9 + 1 . 8 + 1*2 + . 9 + 1 . 9 .2 + 7 . 8 + 3*1 + . 8 + 2 e it - .it +15.3 T e x t i l e s , a p p a r e l , and l e a t h e r 2.1 -17. U • 1 - .3 - .8 -15.it .1 - 1.1 •6 ~ .2 + 2.2 Metals and m e t a l p r o d u c t s ( 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) + 9.1 + . 3 + it.6 + 1 . 8 - . 9 + . 1 + 1.2 + — .2 .3 + 2,9 .3 - .3 P e t r o l e u m , c o a l , c h e m i c a l s , and rubber - ;6 + .2 + + . 2 - 1.5 .1 + . 6 + .1 - 1 . 1 + .2 #3 + .2 + .3 Other m a n u f a c t u r i n g and mining 4- .it + 2 . i t -f *3 + .it + , 2 + 5*3 — + + + . 3 .1 + 1.3 . 3 .itTrade; Wholesale . 7 - 1*3 + • 3 - . 6 — . 6 1.6 + 3 . 3 - .6 - .1 - . 3 - .7 Retail (*127.9) + 8.9 + 5.5 + 1.3 +61.5 +12.2 + 2.0 + 1 . 9 + 1.6 - .2 + 1 . 9 (+ it. it) + 2 9 . 8 Commodity d e a l e r s +22.9 — .7 +lit.u + a + + .7 + 2.1 + 2 . 2 + 1.2 + 1*5 - 1 . 1 .7 + .1 + 1 , 9 S a l e s f i n a n c e companies -22,1 . 3 - 9 . 1 - 1*2 - 2 . 8 - 1.2 .6 1.8 3 . 9 + .2 + .3 . 5 . 9 Public u t i l i t i e s (including transportation) + + + 5,7 .6 + 2.8 -+ .9 + 1 . 8 . 9 .1 . 5 . 2 Construction — .9 - 7.2 - 1.0 .6 - + .1 + 1,0 + .2 + .1 - . 9 - . 7 -- i t .. 55 A l l o t h e r t y p e s of b u s i n e s s -lit, 0 »2 - 1 0 , 1 + . 3 - .it —1+ 1.0 .1 - .it - .1 - 1 . 3 - 1.6 - 1 . 1 Net change of c l a s s i f i e d l o a n s V + 6.it +1U6.1 + +ii9c2 + 1.6 + 9.9 + 2 . 7 +15<0 + 5 , 7 - 1,6 + .2 + l.it +1*7.1 To b a l a n c e w i t h n e t change i n weekly reporting series -22.1 4- 2*6 - 2.5 - .9 - .7 - 2.6 - 3 . 0 - . 7 - l . i t - 1.2 - l.it - 9.1 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 + 9.0 +1214.0 +18,0 + 6»o + 9 . 0 + 2 . 0 1,0 +12.0 — 3.0 - 1.0 0 +38.0 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*6 - .8 + 3.2 •- + 2.6 .1 - .2 + ,2 .1 - .it 5 - 1.7 Defense-supporting a c t i v i t i e s j P l a n t and equipment + 1.1 + .2 + , 1 + 1.1 + .9 - .2 -l.l All other - it.2 - .1 - 6.0 .5 + .5 - .1 .1 + 2,0 ,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 +111.3 + 7«it +it6.9 + 8 , 1 + 6,it + 1 . 6 + 1.1 +13.3 + 6 . 3 l.it + 1.3 +51.0 - .7 P l a n t and equipment + 7. it + . 1 + 6 , 6 — . 1 - . 2 + .it — + .2 » 1 + .7 - .1 - .1 R e t i r e m e n t of non-bank debt and p r e f e r r e d stock + 5*8 + .2 .5 + W A l l o t h e r ( f o r loans c l a s s i f i e d ) - It. 3 - .it - l . l + 1 . 0 ,5 + l.l + .6 — ,6 + .it - i.b - 3.1 Net change of c l a s s i f i e d l o a n s l / +lit7.7 + 6 . 4 +it9.2 + 8 , 5 + 9 . 9 + 2 . 7 + 1.6 +15.O + 5 . 7 - 1 , 6 + 1 . 8 + l.it +it7.1 l/T 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 t o i n d u s t r y and p u r p o s e ; t h e s e banks h o l d n e a r l y 95 P©r c eFRASER n t of t o t a l commercial and i n d u s t r i a l loans of a l l weekly reporting" member banks and about 75 D<?r c e n t Digitized for those* of a l l Gomes'"cd a l banks* H, 1 2 ( a ) ro 1 LA CO .2 .7 - .2 .2 .2 .6
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