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Not for Publication DECONTROLLED AFTER SIX MOUTHS
H.11+

'

November 2h, 1958.
CAPITAL MARKET DEVELOPMENTS
(Including Monthly Review of Sources
and Uses of Financial Intermediaries)

The volume of public security financing was moderate last
week, but is expected to be much smaller during this holiday-shortened
week. During the week ending November 21, large corporate issues, including expiration of subscription rights, totaled $120 million. One
of the issues sold, a $20 million issue of Martin Company, had been
originally scheduled for sale in early July, but the sale was then
postponed. Large State and local government issues offered totaled
$6l million and a $100 million issue of International Bank for Reconstruction and Development was also sold. This week, only two large
offerings are expected—a corporate issue for $30 million and a local
government issue for $33 million.
Bond yields - Yields declined slightly for all types of outstanding bonds last week, except those for high-grade State and local
government bonds.
Stock market credit - Customer credit in the stock market
(excluding that for U. S. Government securities) increased $6l-million
further in October. At a record.level of $b,3&9 million, customer
End i Month
of
Oct. j Sept.
Customer credit
Excluding U„ S. Government securities - total
Net debit balances
Bank loans to "others"
Net debit balances secured by U. S. Govt, securities
Bank loans to others for purchasing or carrying
• U. S. Government securities
Broker and dealer credit
Money borrowed except on U. S. Government securities
On customer collateral
Money borrowed on U. S. Government securities
Customers' net free credit balances
xj Revised.




j

Change

(Millions of dollars)
I , 369
t
3,188
1,181
123

rA,308
r/3,109
1,199,
122

+61
+79
-18.
+1

59

51

+8

1,832
1,612
193
-1,110

1,865
1,626
210
i/l,119

-33
-16
-17
+21

H.lli

-2-

credit was 22 per cent higher than when margin requirements were reduced
last January. The September increase in credit was entirely in net debit
balances, as bank loans to "others" declined.
Borrowing by member films of the New Yoik Stock Exchange maintaining margin accounts (excluding borrowing on U. S. Government securities) declined slightly last month. Customers' net free credit balances
increased for the fifth consecutive month, totaling $1,140 million at
the end of the month.
These and other data on stock market credit for October and
September are shown in the table on the preceding page.
Stock prices - Stock prices declined last week after increasing in each of the previous three weeks. Standard and Poor's index of
500 common stocks, which reached a new high of 53.24 last Monday, closed
at 52.70 on November 21. Trading activity continued to be heavy, averaging 4.1 million shares a day.
Institutional investors - As in earlier months' of the year, the
increase in savings capital at savings and loan associations and deposits
at mutual savings banks in September was larger than a year earlier; however, the increase in life insurance company assets was slightly smaller.
Combined growth in savings at these three institutions was 15
per cent greater in the third quarter than in the corresponding period
last year. Savings capital at savings and loan associations increased
$855 million, 60 per cent more than last year. Deposits at mutual savings banks increased $1*98 million, also 60 per cent greater than in the
third quarter of 1957» However, the increase in life insurance company
assets was $1,485 million, only 3 per cent larger. . (Time deposits at
commercial banks increased the same amount in the third quarter this
year as a year earlier in contrast to the much more rapid growth earlier
in the year.)
Life insurance companies added substantially to their holdings
of U.S. Government securities during the third quarter of this year in
contrast to a moderate reduction last year. Net acquisition of both
business securities and mortgages t y these companies was smaller than
r
in the third quarter of 1957, with the former being one-fourth, and the
latter one-fifth smaller.
Savings and loan associations' funds invested in mortgages were
more than one-third larger than last year. Net acquisition of U. S. Govern
nient securities was quite large in the third quarter, totaling &2?8 million
compared with only tf91 million a year earlier.




Sources and Uses of Funds of Major Types of Savings Institutions 1/
Third Quarter 1953-1958
(In millions of dollars)

Year

Cash'

U.S.
Govt.
ities

Uses of funds
State &
Business
Mort- local
gages govt.
ities
sec.

Other
assets

Sources of funds
Total
sources Net change
in deposits Borrow- Other
and
or savings ing
capital

Life Insurance Companies
1958
1957
1956
1955
1954
1953

2
8
-2
78
5
83

22k
-59
-121
63
-257
-100

k02
512
826
766
651
177

511
685
510
151
619
558

79
32
65 *
26
136
18

267
257
258
155
258
29

1,W5
1,135
1,536
1,559
1,412
368

—

—

101
47
-15
302
14
83

532
353
280
291
324
180

Savings and Loan Associations
1958
1957
1956
1955
1954
1953

-445
-U12
-317
-351
-113
-137

298
91
86
53
-15
10

—

1,66k
1,22k
1,215
1,598
1,229
1,017

-29
21
-20
-18
-18
-53

1,188
924
961
1,279
1,071
858

855
52k
696
686
733
595

Mutual Savings Banks
1958
1957
.1956
1955
1951
1953

-53
-88.
-82
-66
-38
-27

3
-13
-91
-18
-115
-lib

76
178
50
-95
72
94

572
336
611
676
Sk 3
372

12
6
-2
-4
36
18

30
17
.17
12
2k
31

64
IO
436 ~503
505 •
k92
1M

1/ For description of data see Exhibits J, K and L„
n.a.—Not available„




k9 8
312
337
413
407
357

—

142
124
166
92
85
87

- I t
Mutual savings banks' net acquisition of mortgages was 70 per
cent larger than a year earlier, while acquisition of business securities
was nearly 60 per cent less. This is in contrast to earlier in the year
when both mortgages and business security acquisitions exceeded, those of
a year earlier. Holdings of U. S. Government securities increased very
slightly; they had declined in the third quarter last year.
More detailed information 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,




EXHIBIT A

HIGH-GRADE BOND YIELDS

\A;

LOWER - GRADE BOND YIELDS




H.l4

Exhibit B
,Tables for Exhibit A
High-grade Bond Yields

Date

Corporate
Aaa 1/

U. S. Govt,
long-term 2/

3.1*2
2.85
4.14
4.13
3.55

3.19
2.16
3.76
3.83
3.07

Spread between
U. S. Govt, and
Corporate State and
local Aaa

State and
local govt.
Aaa y

(Per cent)
1953
1954
1957
1958

-

Oct.
Oct.
Nov.
Nov.
Nov.

24
31
7
Ik
21 2/

High
Low
High
High
Low

(6/19)
(4/23)
(9/27)
(10/10)
(5/2)

li.io
4.12
4.11.
4.10
4.08

(6/5)
(8/6)
(10/16)
(10/3)
(4/25)

.38
.30
.60
.51
.22

.83
.30
.47
.62
. .34

3.23
3.21
3.19
3.17
3.17

3.77
3.75
3.75
3.71
3.69

2.73 (6/25)
1.90 (9/2)
3.45 (6/29)
3.31 (9/11)
2.64 (5/1)

.33
.37
.36
.39
.39

.54
.54
.56
.54
.52

-

Lower-grade Bond Yields

Date

Corporate
Baa 1/

High
Low
High
High
Low

3.89
3.44
5.10
4.96
4.51

State and
local govt,
tea 2/

Spread between
Aaa and Baa
State and
Corporate
local govt.

(Per cent)
1953
1954
1957
1958

-

Oct. 24
Oct. 31
Nov. 7
Nov..14
Nov. 21 £/

4.91
4.90
4.89
4.88
4.86

(9/18)
(12/31)
(11/29.)
(1/3)
(7/11)
.

3.79
2.93
4.51
4.34
3.64
4.24
4.16
4.12
4.12
4.11

(6/25)
(8/5)
(8/29)
(9/11)
(5/1)

.69
.52
1.27
1.28
.77
.81
.78
.78
.78
.78

1.21
.96
1.21
1.11
•93 .
1.01
.95
.93
.95
.94

E/ Preliminary.
1/ Weekly average of daily figures. Average term 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.
y 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




Exhibit D
Table for Exhibit C
Stock Market

Date

Stock price
index 1/

Trading
Common
Stock market customer credit
volume 2/
stock
Customers' Bank
(millions yields V Total debit bal- loans to
ances k/ "others" 5/
of shares) (per cent)
(Millions of dollars)

1953 - High
Low
1951* - High
Low
1955 - High
Low
1956 - High
Low
1957 - High
Low
1958 - High
Low
September
October
Nov. 7
Nov. l t
i
Nov. 21 g/

26.5k (1/2)
22.95
35.98 s ,
2L.93 (1/8)
45.69
35.28 X
19.61
13.22 i ; a

2.5
0.9
liZ
is
3.1
1.5

5.38

5.82

1*.08

1.*
*11

3.82

1.1*
39.1*8
53.09 (11/1!*) 1*.9
L0.37 (1/10) 1.7

1*.3U
3.91
U. 72
3.39
1*.58

1*8.85
50.95
52.26
53.09
52.70

3.69
3.52
3.L1*
3.39
3.1*1

1*9.08

1108,

U.2

3.U
U.l
U.o
U.2
h.l

2,1*55
2,055
3,1*36
2,1*05

1*,030

1,665
1,311*
2,388
1,653
2,805
2,517
2,823

3,537
l,l7
*0*
3,911*
1*,031
3.576
1*,369
3,551*

2,887
2.1*82
3,186
2,1*87

r/U,308
1*,369

r/3,109
3,188

2,71*0

780
661*
1,01*8
71*6
1,21*1
1,018
1,267
1,155
1,163
1,051*
1,317
1,051
1,199
1,181
r/1,176
1,182

n.a.—Not available.
jg/ Preliminary.
r/ Revised.
1/ Standard and Poor's composite index of 500 common stocks, weekly closing
prices, 191*1-1*3-10. Monthly data are averages of daily figures rather than of
Fridays1 only. Highs and lows are for Friday's data only.
2/ Averages of daily trading volume on the New York Stock Exchange.
2/ 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.
k/ 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.
j>/ 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.




Exhibit E
Long-term Corporate and State and Local Government
Security Offerings and Placements
(In millions of dollars)

1958

New -capital
Corporate 1/
State and local 2/
1
1956
1
1957
1958
1
1956
1
1957

January
February
March

ij&/

1,060
1,065
1,320

573
712
817

812
953
511

7k2
572
506

kok
696
390

April
May
June

1,141
600
881

765
1,1*53-

818
1,116
8kl

798
895
551

765
5k6
393

378
k90
735

JulyAugust
September

1,102
538
i,m

1,003
92k
973

1,063
65k
838

801*
1*03
667

529
58k
k31

October
November
December

e/7-00
e/600

1,090
789
1,076

1,088

E/WZ
e/600

698
633
698

639
3k7
. k09

1st
2nd
3rd
kth

3,135
2,622
2,78k

3,kk5
3,1U9
2,899
2,95k

2,102
2,805
2,556
2,922

2,276
2,216
1,87k

1,820
1,70k
l,5kk
2,029

l,k90
1,603
971
1,395

5,757
8,5a

6,59b
9,k93
12,kk7

a,907
7,163
10,381

k,520
6,39k

3,52k
5,069
7,099

3,093
k,06k
5,k59

quarter
quarter
quarter
quarter

1st half
Three quarters
Year

723

-

k08
206
357

Excluding finance companies * /
>
1st
2nd
3rd
kth

quarter
quarter
quarter
quarter

2,89k
2,583
e/2,731

Year

3,237
2,889
2,582
2,810

1A7
2,511
2,21,6
2,826

11,513

9,26°

1/ Securities and Exchange Commission estimates of net proceeds.
2/ Data through June 19$6 are Bond '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 #716.3 million AT&T convertible debenture issue.
ky Includes $571.5 million AT&T common stock issue.
Total new capital issues excluding offerings of sales arid consumer finance
companies.




.

Exhibit F

H.lli

Other Security Offerings 1/
(In millions of dollars)
Long-term
Foreign government 2/
Federal agency 3/
1935"
1958
19FT
1956
1937
" W
January
February
March

196
53

19
*
30

April
May

139
198
120

123
18
*
U2

9
5
17

28
7
30

2
39"

1
*
60
1

1*1*

July
August
September
October November
December
Year

81*

507

37
8

1,1^3
251

50

72

523 .

125
60

95
161*

109

215

5
21

100

300

572

Short-term
State and local government h/

169

Federal agency 3/~

January
February
March

233
1*60
273

326
1*55
11*7

196
357
21*9

371
208
11*1*

638
1*30
505

380
220
283

April
May

357
351*
26k

205
337
153

125
252
176

209
161
329

336
1*69
501

323
311*
260

July
August
September

289
1*23
369

272
272
252

195
207
. 179

1*37
206
330

22h
370
512

222
1*25
273

2/231

303
9*
1
1*59

2l
9*
328

1,238
255
116

1*07
222
128

5,51*3

3,1*57

October
November
December
Year

3,271*

. 11*8

2,706

e/ Estimated.
jo/ Preliminary.
1/ Data 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 organizations. Source: Securities and Exchange Commission.
Issues not guaranteed by the U. S. Government. Source: long-term, Securities
and Exchange Commission; short-term,Federal Reserve.
h/ Principally tax and bond anticipation notes, warrants or certificates and Public
Housing Authority notes.
some instances PHA
 one year.InSource: Bond buyer.notes included may have a somewhat
longer term than



11. Ik

Exhibit G
Large Long-tora Public Security Issues for New.Capital
(Other than U. 2. Treasury) 1/
Proceeds of Large Issuer Offered
(Millions of dollars)

Corporate

Month

State and
local - government

B7h
h20
399
318
605
1,093
725
#6
281
771
209
825
2#

1957 - October
-^November
December
1958 - ^January
February
March
April
May
July
August
September
October

393
3Ui
UOU
la 0
5%
162
300
505
195
275
109
288
172

Other 2/

151
1,357
266
653
16U
86
a

.

18
209-

Large Individual Issues Offered November 1 through 21

Type y

Amount
Coupon
Offering
(millions
Maturity
net inter- yield
of
est cost
dollars)

Rating

CORPORATE
Columbia Gas System, Inc.
Deb.
25.0
Nat. Gas Pipeline Co.
1st mtg.p.l.bds30.0
Pacific Tel. & Tel. Co.
Deb.
80.0
Martin Company
S.F. deb.
20.0
Gen. Public Utilities Corp. Com. stk.
20.3
STATS AND LOCAL GOVERNMENT
Chicapo, Illinois
Eev.-Ut.
25.0
Baltimore Co., Maryland
G.O.
11.5
Public Housing Authorities
G.O."
15.3
Port of New York Auth.
G.O.
25.0
State of Maryland
G.O.
. 16.8
Nassau Co., new iork
G.O.
21.6
Allegheny' Co.^an.Auth,,Pa. Rev. -lit.
20.0
Los Angeles Sch.Dist., Cal.
G.O.
28.0
Orange Co., California
Rev.-Ut.
15.9
Philadelphia, Pa.
G.O.
' 17.it




1963
1978
1990
1968

1961-83
1960-88
1959-99
1959-78.
1961-73
1959-87
J 461-96
1959-83
1960-99
1959-89

I 7/8
l 5/8
i
i 5/8
j
5 1/2

3.82
3.16
3.35
3.57
2.71
3.Uv
3.73
j.46
3.71
3.51

U. 80

L.60

LL7
5.3it

A
A
Aa
Baa

A
3.10-3.85
2.25-3.55 A
Aaa
1.75-3.15,, 2.10-3.65V A
'2.05-2.85 Aaa
2.00-3.65 A
2.50-3.79
—
1.90-3.55,/ Aa
2.10-3.9% A
2:00-3.602/ A

h.lli

G-2
Large Individual Issues Offered November 1 through 21 (Cont'd)

Issuer

Type 3/

Amount
Coupon
rate or Offering
"millions
Maturity
net interof
yield
dollars)
est cost

Rating

OTHER
Int'l Bk. for Rec. & Dev.

Bds. -

100.0

1973

h 1/2

Ii.50

Aa

n.a.—Not available.
1/ Includes corporate and other security offerings of $lf> million and over;
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
obligationsj Rev.-Ut., revenue obligations secured only by income from public utilities j Rev.-Q.Ut., revenue bonds secured only by revenue from quasi-utilities;
Rev.-S.T., revenue bonds secured by revenue from specific taxes only; Rev.-Rent
revenue bonds secured solely by lease payments.
V 2 3/its of 1978 not reoffered.
5/ Is of 1986-99 not reoffered.
cy Is of 1989 not reoffered.




H.14

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

4957 - Sept. 30
Oct. 31
Nov. 29
Dec. 31
1958 - Jan. 31
Feb. 28
Mar. 31
Apr. 30
May 29
June 30
July 31
Aug. 29
Sept. 30
Oct. 31

During month following
date shown
State and
Corporate local govt. Other 2/
576
1*58
383
378
U98
1,123
555
356
266
768
161
785
113
201

^

334
339
363
345
370
131
298
193
177
225
55
241
295
258

30
18
150
110
150
36

Subsequent to
date shown
State and
Corporate local govt. Other 2/
647
815
1,193
1,161
1,378
1,208
670
561
464 .
1,048
381 .
914
216
326

551
54 3
558
564
487
3.41
330
493
208
235
125
'435
524
675

15
45
63
165
110
150
36

Forthcoming Large Offerings, as of November 21
Type

Amount
(millions Approximate date
of dollars) of offering

CORPORATE
Northern Natural Gas Co.
Pacific Gas"& Electric Co.
Potomac Electric Power Co.
Public Service Electric & Gas Co.
P. Lorillard Co.

30.0
S.F. deb.
1st & ref. mtg, bds. 65.0
1st mtg. bds.
25.0
23.0
Common stk.
24.0
Common stk.

Deb.
Southern Bell Telephone & Telegraph
1st 6 ref. mtg. bds.
Philadelphia Electric Co.
Conmon stk.
Pacific Telephone and Telegraph Co.
Arvida Corp.
Consumers Power Co.
Montana Power Co.
Commerce Oil Refining Corp.
Indiana & Michigan Electric Co.




Common stk.
Pfd. stk.
. 1st mtg. bds.
Deb., bds. & common
1st mtg. bds.

70.0
50.0
16.6
27.5
15.0
20.0
45.0
20.0

• Nov. 26
Dec. 3
Dec. 3
Dec. 4
Dec. 9
(rights expire)
Dec. 10
Dec. 11
Dec. 30
(rights expire)
Dec.
Winter
Winter
Winter
Winter

H.Ik

H-2
Forthcoming Large Offerings, as of November 21 (Cont'd)
Type

Amount
Approximate date
(millions
of offering
of dollars)

STATE AND LOCAL GOVERNMENT
New York, New York
State of Ohio
State of California
East Baton Rouge Parish, Louisiana
ttState of New York
^•Chicago Board of Education, Illinois
New York State Power Authority '
Chesapeake Bay Ferry Commission
Detroit-Metro. Expressway
Massachusetts Port Authority

. G.Oo
G.O.
G'oOo
G.0„
G.Oo •
G.Oo
Rev.-Ut„
Rev.-Ut.
Rev.-Ut,
Rev.-Ut.

32.8
30,0

100.0
22.5
5i-o
25.0

200.0

lkk.o
35.0
75.0

Nov, 25
Dec. 2
Dec, 3
Dec. 10
Dec. 10
Dec. 10
Winter
Winter
Winter
Winter

OTHER
Republic of Austria
Union of South Africa

Dec.
Bonds
25.0
Bonds
Dec. 1
*
25.0
_L
Included in table for first time.
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 issues None.




H.Ik

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
Actual
(per cent) seasoned yields (per cent) seasoned yields
(basis points)
(basis points)

5.00(8/lV57)
2.93(3/31/51)

High
Low

1958 - January
February
March
• April
May 7

13
1,
5
16
20
21

*3.60o/
3.89^/
U.08
3.91
3.90

87
-3
-8
22
35
18 .
21

3.85
3.85

16
16

17
25

3.85
3.82
3.95

17
12
2*
1

18
23
Oct. 7
^
15

Loo
LlO
LlO
U.57
L50

25
28
29
25
22

29

L ^

123
-15

3.962/
l.7
»0
Ll6
L01
l.0
i0

3
9
-1
8
3

14.07

L35

U
32

• Loo
3.95

-i
-6

%

22

28

June 10
July 2
9

.

5.50(11/7/57)
3.00(3/17/51)

28

3.98^/
h.30

1
31

•

*—Single observation, not an average.
1/ Covers only 30-year first mortgage bonds, as reported in Moody1s 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
Sources and Uses of Funds by Life
Insurance Companies
Monthly
(In millions of dollars)
U. S.
Govt.
ities
1956 - July
Aug.
Sept.
Oct.
Nov.
Dec.
Value of Assets
at End of Year
19572/- Jan.
Feb.
Mar.
Apr.
May
. July
Aug.
Sept.
Oct.
Nov.
Dec.
Value of Assets
at End of Year
1958

- Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.

Uses of Funds 1/
State and
Busilocal
ness
govt.
ities
ities

16
-29
11
16
16
166

-36
-109
2h
17
*
-101
-226

297
11*2
71
108
98
208

hh
16
5
h
12

1,273

7,519

39,552

-127
-37

65
-33
-109
11
-79
-62
5
-32
-32
13
-92
-181

202
169
200,
172
169
181
321*
163
198

-1*2

28
-18
59
-9
-30
17
*
-17
22
138
1,291*
-93
-51
20
-17
7k
-20
20
-17
-1

gages

Other

56
109
93

Total
sources
or uses

329
282
215
289
307
288

73
115

706
1*11
1*19
1*63
1*05
557

2,23lt

32,99!*

12,272

95,81*1*

212
258

9
10
26
2
H*
11
7
13
10
10

286
205
197
172
186
11*1*
163
195
151*
170
132
237

11*7
102
3*
1
135
65
87
77
93
6
110
7

357
1*27
1*19
392
581*
381*
1*67
1*29
391*
1*69

7,028 1*2,133

2,377

35,271

13,206

101,309

221
106
277
208
135
191*
182
128
201

51
10
23
13
28
35
21*
36
19

191
125

111
1 hh
60
19
167

652
3*
19
1*01
31*7
1*50
500
570
1*76
kl?

171
15
-119
11
-70
17
*
175
1*2

Z_

21*1*

6

11*0

113
116
101*
123
11*0
119

-1

11*0-

1*6

_jL

1/ Uses of funds represent net changes in assets and therefore reflect net,
rather than gross, uses.
2/ The sum of the twelve monthly changes will not equal the difference between
the asset valves for 1956 and 19?7 shown because of adjustment of the change data to
eliminate the effect of a change in estimating procedures.
Source: Institute of Life Insurance.




H.Ik

Exhibit K
Sources and Uses of Bunds
by Savings and Loan Associations
Monthly
(In millions of dollars)
Uses of Funds 1/
U.S.
Govt.
MortCash
secur- gages
ities

1956 - July
Aug.
Sept.
. Oct.
Nov.
Dec.

-

Value of Assets
at End of Year
19572/- Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.
Oct.
Nov.
Dec.
Value of Assets
at End of Year
1958^- Jan.
Feb.
Mar.
Apr.
May
July
Aug.
Sept.

Other

-178
-96
-U3
36
58
302

3h
39
13
lh
25
11

hlh
hl.7
35h
356
27h
232

-8h
9
5h
68
81
-21

186
398
377
h73
h37
#3

2,119

2,782

35,729

2,199

12,875

-172

lh2
117
91
30
18
-hi
hi
23
26
-10
19
-69

200
266
36h

h58
h65
39 h
h63
363
h26
303
28h

-2h
57
8h
112
lhl
hi
-100
. 59
55
9h
69
22

lh5
399
515
h97
65h
651
lh
h38
h5l
h88
h73
675

336
315
359
313
h68
859
-68
252
32h
367
399
966

2,1hh

3,169

hO,119

2,809

h8,275

h2,038

1,381

h,856

-121
175
209
117
38
180
-30h
-73

h6
-20
-3
37
15
82
h2
111

216
25h
3hh
hOO
5hl
590
539
562

7
13
. 11
.108
100
-hi
-79
13

lh8
h22
561
662
69 h
811
198
613

h53
38h
h91
363
521
9h5
62
358

-377
-127
-89
112
-32
167
-37
5h

72
165
159
187
205
-301
173
201

-23
-18
38
187
-320
-106
8
-21
8h

hoh

Sources of Funds
Net
Total
sources change BorrowOther
ing 2/
or uses savings
capital
lh2
287
267

ho 5

377
822
37,W

81

103
95
82
66
60
-380

l,3h7

h,380

-59
16
28
2

-215
2h
-70
I5h
-21 . 177
lh
170
167
19
106
-31h
116
-3h
lh7
39
80
h7
18
103
66
8
. 123
-hlh

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 L
Sources and Uses of Funds byMutual Savings Banks
Monthly
(In millions of dollars)

Cash

U.S.
Govt,
ities

1956 - July
Aug.
Sept.
Oct.
Nov.
Dec.

-63 . -7
-19
-1*7
-37
-11*7
-33
-22
-78
-10
11*0

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
-21*
6
125

Uses of Funds 1/
State air
Busilocal MortTotal
ness
govt.. gages Other sources
secure
or uses
ities-' ities
31*
2
ll*
13
-7
5
3,523

21
20
18
-76
-19
-72
-7
11
-17
-136
-136
-26

68
51*
83
63
62
72
62
61
60
93
75
h,331
160
86
86
97
120
-2/4
3b
8
34

Value of Assets
at End of Year

g

7,971

7,552

1958 - Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.

-60
63
36
-1*7
-5
1*2
-66
-5
18

-21
11
1
-85
-62
-36
11
19
-27

55

1
2
-5
-5
i
8

198
227
186
205
175
11*6

669 19,529

6:
1
2
2
-1
7
-3
2
-3
7
-7

136
. 92
127
121
127
118
122
111
103
121*
100
11*1

682 20,951
23
1
*
6
k
. -19
2k
8
2
2

130
99
165
151*
195
253
193
198
181

-21*
16
25
-15
53
-1*2

Sources of Funds
Net
changes
in
deposits

Other

139
181
183
18
122
217

76
102
159
62
50
399

698 33,311

30,032

3,279

137
19k
273
31*
21*6
150
82
166
188
-20
108
299

85
112
238
7
169
265
16
90
206
31*
36
1*05

52
82
35
27
77
-115
66
76
-18
-51*
72
-106

761 35,168

31,695

3,1*73

278
251
3k3
91*
269
26k
152
251
237

231*
11*9
336
93
181
300
88
11*3
267

11
**
102
7
1
88
, -36
61*
108
-20

-5
27
32
-20
62
-38
-29
28
18
-la
38
-9

25
20
9
-29
10
*
5
-28
29
29

63
79
2k
-**
11
72
-152

1/ Uses of funds represent net changes in assets and therefore reflect net,
rather than gross, uses.
2/ Includes Canadian government and political subdivisions, International Bank
for Reconstruction and Development, non-guaranteed Federal agency and other bonds
as well as corporate bonds and stock.
Source:
 National Association of Mutual Savings Banks and Federal Deposit
Insurance Corporation.




Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102