Full text of H.16 Capital Market Developments : August 25, 1958
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Not for Publication DECONTROLLED AFTER SIX MONTHS H.lU August 25, 1958 CAPITAL MARKET DEVELOPMENTS (Including Monthly Review of Sources and Uses of Funds of Financial Intermediaries) The volume of public security financing continues to be moderate. During the week ending August 22, two large corporate issues with aggregate proceeds of 5-llU million were sold, and one large State and local government issue for $22 million was offered. The calendar for this week includes only one large corporate offering for $50 million and State and local government issues totaling §62 million. The sale of two other corporate issues scheduled for this week has been postponed indefinitely because of market conditions. The estimate for corporate new capital financing for the month of August, shown on Exhibit E s has been lowered to $500 million* reflecting in part these recent postponements„ Bond yields - Yields continued to increase last week for all categories of outstanding bonds. The increase was slight for yields on long-term U. S. Government obligations, but substantial for yields on corporate and State and local government bonds. Offering yields on new corporate issues have increased sharply recently. A new Aa-rated first and refunding mortgage bond issue was offered to investors last week at a yield of 1|.50 per c e n t — W basis points above the yield for a first mortgage bond issue with similar terms offered a month earlier. Stock prices - Common stock prices increased slightly last week. Standard and Poor's index of 500 common stocks closed at 1*7.7U on August 22, only 3 per cent below the July 1957 high. Trading activity declined again last week, averaging 2.5 million shares a day. Institutional investors - In June, savings inflows at three major financial institutions continued to be larger than a year earlier. The combined growth at these institutions—measured by the net increases in life insurance company assets, savings capital at savings and loan associations, and deposits at mutual savings banks—was one-sixth larger than in June 1957. ' For the first half, the growth of savings at these three institutions was nearly one-fourth greater than in 1957. Deposits at mutual savings banks increased $1,293 million during the first six months of 1958, nearly one-half larger than a year earlier. . Savings h. - lli —2— ' i/ Sources and Uses of Funds of 14a j or Types of Savings Institutions First six months 1953-1958 (In millions of dollars) Year Cash Uses of funds BusiMortness gages . ities ities 1958 1957 1956 1955 1951 1953 -99 -155 -178 -136 -121* -191 29 -2l*9 -625 25 -1*21 -165 u. s„ Govt. State & local Other govt. Total sources and uses Sources of funds Net change in deposits Borrow- Other or savings ing capital Life Insurance Companies 1,101 1,026 1,01*8 968 1,135 1,502 753 1,165 1,859 1,556 1,109 976 ll*6 56 11*9 121* #3 69 66l 552 363 365 692 178 2,591 2,395 2,616 2,902 2,7$1 2,369 —— -- . Savings and Loan Associations 1958 1957 1956 1955 1951: 1953 598 -58 -27 -11* 315 hh 157 357 301: 253 39 210 — — 2,31*5 2,157 2,191 2,869 ls87li 1,703 n.a. n„a. 198 1*11 .300 180 135 110 3,298 2,861 . 2,762 3,282 2,361 2,061* 3,157 2,650 2,656 2,586 2,321* 1,91*5 -31*6 -167 -279 151 -276 -il*6 1*87 378 385 51*5 313 265 Mutual Savings Banks 1958. 1957 1956 1955 1951 1953 - .29 -1*9 -1*8 -37 . k -51 -163 -108 -163 . -73 -167 1*2 525 1*02 116 -38 226 285 996 721 1,11*7 1,155 933 726 1*2 10 30 56 125 53 70 58 65 1*0 61* 1*1* 1,1*99 1,031* 1,11*7 1,106 1,185 1,100 1,293 876 997 975 1,01*2 1,007 206 158 150 130 11*3 93 1/ For description of data see exhibits J s K and L„ n»a„—Not available. f H.ll; capital at savings and loan associations increased a record £3*157 million, nearly.one-fifth greater than in the first half last year. However, the increase in life insurance company assets totaled $2,591 million, only 8 per cent larger than last year and smaller than in 1951, 1955, and 1956. (Tine and savings deposits at commercial banks have increased more rapidly in each month this 5 ear than last, except in January, and growth for the first six months was three-fifths greater than a year earlier. Life insurance companies added slightly to their holdings of U. S. Government securities during the first half of this year, in contrast to substantial reduction last year. The net addition reflected primarily the pattern of -Treasury financing, with life insurance companies acquiring over 4300 million of the new long-term issues, only partially offset by a reduction in their holdings oi short-term issues exchanged for the 3 1/2 per cent bond of 1990 and continued reduction in nonmarketable bond holdings. Last year a considerable part of the decline in insurance company holdings of U. S. Governments was in marketable bonds. Net acquisition of business securities by life insurance companies was 7 per cent higher during the first half than last year. The increase in mortgage holdings was smaller in each month this year than in the corresponding period a year earlier—with the total increase being one-third smaller than in 1957. Mutual savings banks' net liquidation of U. S. Government securities was 50 per cent larger this year than in the corresponding half of 1957. Net acquisition of mortgages was 38 per cent greater than a year earlier, while the increase in holdings of business securities was 31 per cent larger. Throughout 1957 savings banks increased their holdings of business securities very rapidly, but net acquisition of mortgages was at a slower rate than in 1956. The large volume of funds available this year has permitted an increase in mortgage holdings as well as in business securities. In June, there appears to have been a marked shift in investment policy of mutual savings banks as net acquisition of mortgages was in record volume while holdings of business securities declined slightly for the first time in over 18 months. The decline reflects a reduction in holdings of nonguaranteed debt of Federal agencies (classified in current monthly reports in the business securities category). Net acquisition of corporate securities increased slightly, but much less than in earlier months of the year. The shift in current investment activity from acquisition of business securities to investment in mortgages was quite sharp. Savings and loan associations' funds, invested in mortgages were 9 per cent larger than last year, while the increase in holdings of U. S. Government securities was less than half as large. These associations increased their cash balances 3598 million, in contrast to a $58 million decline last year. R.Ik - k- More detailed infoimation concerning recent capital market .developments is presented in the attached.exhibits. Capital Markets Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System. HIGH-GRADE BOND LOWER - GRADE YIELDS BOND YIELDS Exhibit B H.lh Tables for Exhibit A High-grade Bond Yields Corporate Aaa 1/ U. S. Govt, long-term 2/ 3J*2 2.85 lt.lU 3.89 3.55 3.19 (6/5) 2.15 (8/6) Spread between U." S. Govt, and Corporate State and local Aaa State and local govt. Aaa y (Per cent) 1953 195k 1957 1958 - High Low high High Low July Aug. Aug. Aug. Aug. 25 1 8 15 $2 2/ . 3.76 (10/18) 3.62 (8/22) 3.07 (h/25) 3.70 3.71 3.77 3.83 3.89 2.73 1.90 3.1*5 3.12 2.6k (6/25) (9/2) (8/29) (8/21) . (5/1) 2.78 2.81* 2.91 3.04 3.12 3.38 3.a 3.53 3.61 3.62 .38 .30 .60 .51 .22 .83 .30 .1*7 .62 .3U .32 .27 .60 .60 .62 .57 .50 . 2h .22 .27 Lower-grade Bond Yields State and local govt. Baa y Date . Corporate Baa 1/ High Low High High Low 3.89 (9/18) 3.W* (12/31) 5.10 (11/29) 1*.96 (1/3) l*.5l (7/11) 3.79 (6/25) 2.93 (8/5) l*.5l (8/29) 1*.10 (8/21) 3.61* (5/1) 1*.55 1*.56 1*.60 li.66 2*. 71 3.82 3.83 3.92 1*.03 l*.io Spread between Aaa and Baa State and "Corporate local govt. (Per cent) 1953 1951* 1957 1958 - July Aug. Aug. Aug. Aug. 25. 1 8 15 22 2/ . -69 .52 1.27 1.28 .82 1.21 .96 1.21 1.11 .98 .85 .85 .83 .83 .82 1.0U .99 1.01 .99 .98 2/ Preliminary. 1/ Weekly average of daily figures. Average terra of bonds included is 25-26 years. 2/ Weekly average of daily figures. The series includes bonds due or callable in 10 years or more. 2/C Thursday figures. Only general obligations bonds are included; average term is 20 years. Note.—Highs and lows are for individual series and may be on different dates for different series. STOCK MARKET -1: Exhibit D Table for Exhibit C Stock Market Date Stock price index 1/ Common Trading stock volume 2/ yields V (millions of shares) (per cent) Stock market customer credit Customers' Bank Total debit bal- loans to ances 4/ "others" 5/ (Millions of dollars) 1953 - High Low 1954 - High Low 1955 — High Low 1956 - High Low 1957 - High Low 1958 - High Low 26.54 22.95 35.98 24.93 45.89 35.28 49.64 43.22 49.08 39.48 48.05 40.37 (1/2) 2.5 (9/18X 0.9 (12/31) 3.7 (1/8) 1.4 (12/9) 4.6 (1/14) 1.5 (8/3) 3.1 (1/20) 1.5 (7/12) 4.2 (12/20) 1.4 (8/8) 3.8 (1/10) 1.7 June July Aug. 8 Aug. 15 Aug. 22 •£/ hi1.75 145.98 48.05 47.50 47.73 2.7 3.2 3.7 2.9 2.5 5.38 6.25 4.32 • 5.82 • 4.08 4.41 3.82 4.34 3.91 4.72 3.74 4.58 h. 07 3.97 3.7k 3.79 3.77 2,455 2,055 3,436 2,405 4,030 3,537 4,047 3,914 4,031 3,576 4,251 3,554 1,665 1,314 2,388 1,653 2,805 2,517 2,823 2,740 2,887 2,482 3,020 2,487 780 664 1,048 746 1,241 1,018 1,267 1,155 1,163 1,054 1,317 1,051 4,226 4,251 2,929 3,020 1,297 1,231 1,199 1,189 n.a. n.a.—Not available. jg/^Preliminary. ' 1/ Standard and Poor's composite index of 500 common stocks, weekly closing prices, 1941-43=10. Monthly data are averages of daily figures rather than of Fridays' only. - Highs and lows are for Friday's data only. 2/ Averages of daily trading volume on the New York Stock Exchange. J/ Standard and Poor's composite stock yield based on Wednesday data converted to weekly closing prices by Federal Reserve. Yields shown are for dates on which price index reached its high or low. 4/ End of month figures for member firms of the New York Stock Exchange which carry margin accounts; excludes balances secured by U. S. Government obligations. 5/ Wednesday figures for weekly reporting member banks. Excludes loans for purchasing or carrying U. S. Government securities at banks in New York and Chicago. Weekly reporting banks account for about 70 per cent of loans to others. For further detail see Bulletin. Note.—Highs and lows are for individual series and may be on different dates for different series. H.lU Exhibit Hi Long-term Corporate and State and Local Government Security Offerings and Placements (In millions of dollars) 1956 New capital Corporate 1/ State and local 2/ 1 1956 1957 1958 1 1956 1 1957 January February March 723 851,/ 1,561-2/ 1,060 1,065 1,320 573 712 817 812 953 511 7k2 572 506 kok 696 390 April May June 1,110. 600 891 & l,U53 818 l,lk6 8kl 798 873 5k2 765 5k6 393 378 k90 735 1,003 92k 973 1,063 65k 838 E/627 e/kOO 529 58k k31 k08 206 357 1,090 789 1,076 1,088 698 633 698 639 3k7 k09 3,115 3,119 2,899 2,95k- 2,102 2,805 2,556 2,922 2,276 2,213 1,820 . 1,70k l,5kk 2,029 l,k90 1,603 971 1,395 k,907 7,k63 10.38k k,k89 3,52k 5,069 7,099 3,093 k,06U 5,k59 July August September e/1,150 2/500 October November December 1st 2nd 3rd kth quarter quarter quarter quarter 1st half Three quarters Year 3,135 2,622 5,75,7 6,59k 9,k93 12,kk7 Excluding finance companies 1st 2nd 3rd iith Year quarter quarter quarter quarter 2,89k 2,583 3,237 2,889 2,582 2,810 l,6k7 2,5kl 2,216 2,826 11,518 9,260 1/ Securities and Exchange Commission estimates of net proceeds. 2/ Data through June 1956 are Pond Buyer data classified as new capital by Federal Reserve; later data are from the Investment Bankers Association of America and are somewhat more complete as to coverage than the earlier data, particularly for Federal Government loans. 3/ Includes #718.3 million AT&T convertible debenture issue. h/ Includes $571.5 million AT&T common stock issue. jy Total new capital issues excluding .offerings of sales arid consumer finance companies. ' H.IU Exhibit F Other Security Offerings 1/ (In millions of dollars) Long-term Federal agency 3/ Foreign government 2/ 1956 1958 1958 11 1 1957 1 1957 1 January February March 196 53 April May June 139 198 120 Bh h9 37 8. 30 1,163 251 — 50 h2 95 July August September 28 7 30 2 39 October November December h hh 60 1 5 21 100 507 300 572 60 109 215 — 169 Federal cigency 3/ January February March . 233 160 273 326 155 117 .196 357 2k9 371 208 1UU April May June 357 35U 205 337 153 125 252 176 209 161 329 2/286 272 272 252 195 207 179 601 July August September 60 125 523 Short-term State and local government U/ 26k — — 123 Year 1956 72 .' 638 L30 505 380 220 283 336 169 501 323 31U 260 22k 370 512 222 125 273 303 2?h , U59 328 1U8 1,238 255 116 107 222 128 2,706 5,513 3,l'i57 October November December - 9h Year 3,27lr e/ Estimated. -qJ Preliminary. 1 / Ebta presented in this exhibit differ from those in Exhibit E in that refunding issues, as well as new capital issues, are included. Long-term securities are defined as those maturing in more than one year. 2/ Includes securities offered in the United States by foreign governments and their subdivisions and by international organisations. Source: Securities and Exchange Commission. 2 / Issues not guaranteed by the U. S. Government. Source: long-term, Securities and Exchange Commission; short-term, Federal Reserve. hj Principally tax and bond anticipation notes, warrants or certificates and Public Housing Authc '.y notes. In some instances PHA notes included may have a somewhat longer term '. one year. Source: Bond Buyer. I...II, - 1 ( •l'v.V'Lic Security- icuius l'or New Capital th:.n U. Treasury) 1 ] . ProiH:. dii 0.1' Lar^v Issuer, Offered (. .LIion.-' of dollars) Corpoiate Month Ju.l> Auf-iuit 525 526 537 57li 120 399 313 605 1,093 725 3# 281 771 October Nov>i,iber LV: c 1:111 ber January February March April May July State and local government Other 2/ 22h 266 133 393 3WJ ' 25 2145 15U hoh hio 1,357 2# #3 182 300 #3 l6it 86 - hi 195 275 Large Individual Issues Offered August 1 through.22 Type 3/ Coupon Amount Offering rate or (millions Maturity net inter- yield of est cost dollars) Rating - CORPORATE S.l*. deb. U5.0 Consolidated Nat. Gas Co. Public Serv. Elec. & Gas Co. 1st ref.mtg.bds.60.0 Beb.&com.stk. hS.3 Houston Corn. 1983 1988 1 Q 68 k3/8 L5/8 5 U. 30 14.50 y Aaa Aa STATE AND LOCAL GOVERNMENT Philadelphia Sch. Dipt. ,Pa. Georgia Rural Rds. Auth. Los Angeles, California G.O. Rev.-Kent. G.O. OTHER None 12.0 21.0 21.5 1900-83 3.28 1960-79/68 3.72 1959-88/68 1.63 l.UC -3.50^ A 1.70-3.70 A 1.25-3.95 Aa G-2 • 1/ Includes corporate and other security offerings of $lj? million and over5 State and local government security offerings of $10 million and over. _2/ Includes foreign government and International Bank for Reconstruction and Development issues and non-guaranteed issues by Federal agencies. 3/ In the case of State and local government securities, G.O. denotes general obligations5 Rev.-Ut., revenue obligations secured only by income from public utilities; Rev.-Q.Ut., revenue bonds secured only by revenue of quasi-utilities; Rev.-S revenue bonds secured by revenue from specific taxes only; Rev.-Rent., revenue bonds secured solely by lease payments. h/ The 3.50 per cent yield is for the 1981-82 maturities. The 1/hs of 1983 •were' reoffered to yield I4.OO per cent. 5/ Offered in units with common stock. H.ll* Exhibit H Forthcoming Large Long-term Public Security Offerings for New Capital (Other than U. S. Treasury) 1/ Expected Proceeds from Forthcoming Large Issues Date of computation 1957 - June 28 July 31 Aug. 30 Sept. 30 Oct. 31 Nov. 29 Dec. 31 1958 - Jan. 31 Feb. 28 Mar. 31 Apr. 30 May 29 June 30 July 31 During month following date shown State and Corporate local govt. Other 2/ Subsequent to date shown. State and Corporate local govt. Other t 370 526 578 576 1*58 383 378 1*98 1,123 555 356 266 768 161 1*15 811 81*5 61*7 815 1,193 1,161 1,378 1,208 670 561 1*61* 1,01*8 381 153 218 183 331* 339 363 315 370 13U 298 1*93 177 225 55 25 30 30 18 150 110 150 36 1*79 1*71 379 551 51*3 558 561* 1*87 31*1 330 1*93 208 235 125 25 30 15 1*5 63 165 110 150 36 Forthcoming Large Offerings, as of August 22 Issuer Type Amount Approximate date (millions of offering of dollars) CORPORATE Southern California Edison Co. *Texas Eastern Trans. Co. *Sears Roebuck & Co. •Tennessee Gas Trans. Co. Universal-Cyclops Steel Corp. Montana Power Co. Commerce Oil Refining Corp. Standard Oil Co. of California Martin Co. 1st ref. mtg. bds. 1st mtg. p. 1. bds. S.F. deb. 1st mtg. p. 1. bds. S.F. deb. 1st mtg. bds. Deb ., bds. & common Deb. S.F. deb. 50.0 35.0 350.0 50.0 22.5 20.0 1*5.0 150.0 25.0 Aug. 26 Sept. 11 Sept. Sept. 1958 1958 1958 1958 1958 32.1* 18.7 10.7 21.0 30.0 20.0 10.0 30.0 30.0 11*1*.0 50.0 Aug. 26 Aug. 26 August Sept. 3 Sept. 9 Sept. 9 Sept. 10 Sept. 16 Sept. 18 October Dec. 3 STATE AND LOCAL GOVERNMENT New York, New York Detroit, Michigan San Carlos, California *State of Delaware Indiana State Office ELdg. Comm. *State of Connecticut San Diego Uhif. Sch. .Dist., Calif. *Los Angeles Go. Flood Dist., Calif. State of Ohio Chesapeake Bay Ferry Comm. State California Digitized forofFRASER G.O. G.O. G.O. G.O. Rev. G.O. G.O. Rev. Rev.-S.T. Rev. -Ut. G.O. H.lU H-2 Forthcoming Large Offerings, as of August 22 (Cont'd) Issuer Type Amount Approximate date (millions of offering of dollars) OTHER None *—Included in table for first 1/ Includes corporate and other issues of $15 million and over; State and local government issues of $10 million and over. 2/ includes foreign government and International Bank for Reconstruction and . Development issues and non-guaranteed issues by Federal agencies. Note—Deletions for reasons other than sale of issue: . None. H.lU Exhibit I Yields on New and Outstanding Electric Power Bonds, Rated Aa and A 1/ Date 1952 - 1957 Aa-rated <offering yields A-rated offering yields Amount above Amount above Actual seasoned yields Actual seasoned yields (per cent) (basis points) (per cent) (basis points) 5.00(8/lU/57) 2.93(3/3l/5U) High Low 1 9 5 8 - January February March U 5 6 12 19 21 25 April 1 2 17 23 May 7 87 -3 *3.60 з . 892/ -8 22 U.22 U.00 U.OO и.15 UU 50 28 26 U.05 3.98 U.00 31 23 3.75 5 3.90 21 3.85 3.85 16 16 3.85 3.82 3.95 17 12 2U U.OO 25 25 29 13 15 16 20 21 22 28 June 1 0 17 25 July 2 9 18 23 il:18 || 5.50(11/7/57) 3.00(3/l7/5U) 3.962/ U.07 U.25 U.07 123 -15 3 9 6 -7 3.98 5 U.OU U.OO 11 3 U.07 U.35 U 32 U.00 3.95 -1 -6 3.982/ 1 U.35%/ 31 *—Single observation, not an average. , 1/ Covers only 30-year first mortgage bonds, as reported in Moody's Bond Survey. Except where indicated, the actual yield figure and the amount above seasoned yields are averages of offerings during the indicated period and of the differences between these new offering yields and yields on seasoned issues of similar quality for the same day. Average maturity for the seasoned issues varies from 26 to 28 years. 2/ Provides for a 5-year period during which issue may not be called for refunding at a lower coupon rate. Monthly averages so marked include one or more issues with such a provision. Other issues have no such provision. Exhibit J H.U* Sources and Uses of Funds by Life Insurance Companies Monthly (In millions of dollars) U. S. Govt. ities 1956 • Apr, May June July Aug. Sept. Oct. Nov. Dec. Value of Assets ' at End of Year 1957 - Jan. Feb. Mar. Apr. May June July : Aug. Sept. Oct. Nov. . Dec.. Value of Assets at End of Year 27 19 -9 16 l*o -29 -36 -109 16 16 166 1*7 -101 -226 11 1,273 -132 -38 -1*7 2l* -22 60 -5 -30 1*5 -16 lk 138 1,26k Uses of Funds 1 J State and Busilocal ness Mortgovt, gages securities ities^ 116 153 106 297 ll*2 71 108 98 208 69 -1*1* -117 3 -90 -70 36 -38 -I41* 9 -98 -185 6,950 269 -lit 3h0 6 293 329 282 215 289 307 288 56 109 93 -1 73 115 39,552 2,23k 32,991 12,272 172 160 192 165 165 172 lOlt 15U 188 237 202 252 10 33 10 7 12 10 13 285 200 193 168 182 137 197 191 150 162 127 21*1* 68 11*1* 108 la 119 72 91 82 92 8 118 -16 1*2,025 2,375 35,230 2h 7,519 Other : -8 1*1* 16 5 k 12 7 13 26 I 13,199 211* 180 163 1*3 -9k 11 8 119 -57 99 -122 19 271 " 22 13U -18 202 12 110 7 111 130 27 73 -73 -22 185 1*3 3k 99 1/ Uses of funds represent net changes in assets and therefore rather than gross, uses. Source: Institute of Life Insurance. 1958 - Jan. Feb. Mar. Apr. May 1*72 1*22 336 1*11* 380 371 766 369 138 hl2 373 1*1*6 101,01*3 123 629 11*8 328 61 385 19 332 165 1*33 1*81* ll*5 reflect net, Exhibit K H.lU Sources and Uses of Funds by Savings and Loan Associations Monthly r° (l| millions of dollars) Uses of Funds l / U.S. Govt. MortCash secur-; gages ities; 1956 - Apr. May June July Aug. Sept. Oct. Nov. Dec. Value of Assets . 1957E/- Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Value of Assets at End of Year 1958^" Jan. Feb. Mar. Apr. May -62 12 122 -178 -96 -1*3 36 58 302 55 1*3 -3U 3k 39 13 ll* 25 11 1*08 1*36 1*1*0 lai* 1*1*7 351 356 27k 232 2,119 2,782 35,729 -172 -Uo -23 -1*8 38 187 -320 -106 . 8 -21 81* 1*3 9 ll*2 117 91 30 18 -la 1*1 23 26 -10 19 -69 200 266 361* l*ol* 1*58 1*65 39k 1*63 363 1*26 303 28k 2,ll*l* 3,169 -121 175 209 117 38 180 1*6 -20 -3 37 ¥ 82 k0,119 216 25U 3kk koo 5U1 590 Other Total sources or uses Sources of Funds Net change Borrowsavings ing 2/ capital 88 127 12 -8k 9 5k 68 81 -21 1*88 617 539 186 398 377 1*73 1*37 523 319 1*62 769 11*2 287 267 1*05 377 822 2,199 12,875 11*5 -2k 57 . 399 8k 515 112 1*97 1i a •651* ~ 651 hi -100 11* 1*38 59 1*51 55 1*88 9k 69 1*73 22 675 81 171* 157 -281* 103 95 82 66 60 -380 37,11*8 1,31*7 1*,380 336 315 359 313 1*68 859 -68 252 321* 367 399 966 -215 -70, -21 11* 19 106 -31* 39 1*7 18 8 123 21* 151* 177 170 167 -311* 116 11*7 80 103 66 -1*11* -5 -2 51* -59 16 28 2 2,809 1*8,275 1*2,038 1,381 1*,856 7 13 11 108 100 -la 11*8 1*22 561 662 1*53 381* 1*91 363 521 91*5 -377 -127 -89 112 72 165 159 187 69I* - 811 -32 I67 205 -301 1/ Uses of funds represent net changes in assets and therefore reflect net, rather than gross, uses. Savings and loan associations do not hold business securities and data on holdings of State and local government bonds, presumed to be small, are not available. 2/ Advances from Home Loan Banks and other borrowing. Source: Federal Savings and Loan Insurance Corporation. H.lU- Exhibit ft Soui-ces and Uses of Funds by Mutual- Savings Banks Monthly (In millions of dollars) Cash 1956 - Apr. May July . Aug. Sept. Oct. Nov. Dec. -56 -2 89 -63 -19 -33 -22 il*o Value of Assets 920 at End of Year 1957 - Jan. Feb. . Mar. Apr. • May July Aug. Sept. Oct. Nov. Dec. -89 13 -56 12 71 -73 -1*2 27 -2k 6 125 Value of Assets 890 at End of Year .1958.- Jan. »Feb. Mar. • Apr. May June -60 63 36 -1x7 r-5 1 h? Uses of Funds 1 / State and u.s. local MortTotal BusiGovt. ness govt. gages Other sources secur- securor uses ities ities-^ ities 2 19 1*5 31* 2 11* 13 -7 5 -52 -1*2 -90 -7 -1*7 -37 -117 -78 -10 7,971 3,523 21 20 18 -76 -19 -72 -7 11 -17 -136 -136 -26 7,552 -3 -5 -5 1 2 -5 -5 l 8 669 19 ,529 6 68 1 51* 83 63 2 62 2 -1 72 62 61 55 60 93 75 1,331 -21 ltl -u5 -62 -36 7 -3 2 -3 7 -7 97 120 -2h 103 121* 100 lhl 23 . '* 6 18 -ill 30 ?.U 137 .191* 273 3h 2L6 150 82 166 188 -20 108 Net changes in deposits 1*5 162 278 7.6 102 159 62 50 399 Other 31* 61* -88 63 79 21* -1*1* 72 152 30,032 3, # 9 85 112 238 7 169 265 16 52 82 35 27 77 115 90 76 -16 #6 31, 36 66 299 l*o5 72 106 7ol 3!$.168 31,6yS 3.1*73 130 278 23), Jili 251 11*9 102 99 165 20 9 31*3 195 1*0 5 269 ?6L I:' -19 79 226 190 139 • 181 183 18 122 21*7 698 33,311 136 -5 27 92 127 32 -20 121 62 127 118 . -38 122 -29 111 28 682 20,951 160 86 86 183 5 62 191* 183 -32 -21* 198 16 227 186 25 205 -15 175 53 11*6 . - ! » 2 Sources of Funds Ph 336 93 181 300 7 1. 83 36 1/ Uses of funds represent net changes in assets and therefore reflect net, rather than Rross, uses. 2/ Includes Canadian government and political, -subdivis Lens,, International Bank for i<econstruction and Development, non-guaranteed Federal agency and other bonds A3 well as corporate bonds and stock. Source: National Association of Mutual oavinvs Banks and federal Deposit : Inr.Hran^e Corporation. " •