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L.4,3 Not for publication...« M y °: B"'ERV£ April 15, 1965. BANKING /66BM§§IABY DEVELOPMENTS IN MARCH 1965 • Ubrf'" Seasonally adjusted commercial bank credit increased substantially in March reflecting continued strong loan demand. Holdings of Treasury issues declined somewhat while holdings of other securities showed little change. The money supply increased following a reduction in February. Time and savings deposits at commercial banks rose much less rapidly than in January or February but about the same as the average for other recent months. Seasonally adjusted total and required reserves rose further. Borrowings increased slightly and exceeded excess reserves which declined substantially. Bank credit. Seasonally adjusted loans and investments at all commercial banks increased $3.4 billion in March, somewhat more than in either January or February. Over the first quarter of the year, bank credit rose at an annual rate of 13 per cent compared with 7 per cent in the fourth quarter of 1964. The March credit growth was associated with an exceptionally heavy loan demand. Total loans rose by a postwar record amount of $3.9 billion, with most major loan categories showing substantial increases. The annual rate of growth in the first quarter of 21 per cent was over twice that in the fourth quarter of 1^64. Holdings of U. S. Government securities declined $600 million in March, bringing the total reduction in the first quarter to $1.9 billion. At city banks, liquidation of Treasury bills continued heavy over most of the month; there were also reductions in holdings of Governments in the intermediate - and longer-term maturity ranges after allowance for passage of time movements. At other banks, as well, holdings of Treasury issues declined more than usual. All-commercial bank holdings of municipal and Federal agency securities increased only slightly further in March following a slackening in the rate of acquisitions in February. Growth in March was somewhat understated, however, because of a large temporary run-off of New York State tax anticipation notes at the month-end. Part of the March credit increase was associated with business needs for funds over the tax and dividend payment period. These needs were appreciably higher this year than they were a year ago, but there were also more maturing tax bills and CD's to meet these payments in this year. Business loans rose more than in any other year and twice as much as last year. Credit extended indirectly to businesses, through loans to Government security dealers and to finance companies, on the other hand, increased much less than a year earlier. Thus, expansion in total bank credit over the tax and dividend period was a little smaller than that of the corresponding weeks last year but much larger than in most earlier years. - 2 - Seasonally adjusted business loans at all commercial banks increased $1.2 billion in March, about the same as in February, and more than twice the monthly average rise over the year 1964. Over the first quarter of 1965t business loans rose at an annual rate of 28 per cent, about the same as in early 1956, and more rapidly than in any subsequent period. At city banks, borrowing by metals companies continued large and was about the same as in March I960 but less than in March 1956--two earlier periods of substantial steel inventory accumulation. Borrowing was also heavy in most other major loan categories, particularly in trade, textiles, petroleum and chemicals, and miscellaneous manufacturing and mining. Loans to commodity dealers, however, declined more than usual in March following a contraseasonal increase during the dock strike. Seal estate and consumer loans rose further in March. So far this year, growth in consumer loans has been somewhat faster than in late 1964 "kile that in real estate loans has moderated a little. Security loans rose contraseasonally in March reflecting a substantial rise in broker loans; in part, this rise represented refinancing of loans called by agencies of foreign banks in response to the repatriation of foreign time deposits by U. S. corporations. Loans to nonbank financial institutions also rose due in part to temporary end-of-month borrowing. Money supply, deposit turnover, and time deposits. The seasonally adjusted money supply increased $700 million in March following a decline of similar amount in February. Substantial growth in the first half of the month and a small reduction in the second half were associated in part with larger— than-usual changes in U. S, Government deposits at commercial banks. Since November, the money supply has increased at an annual rate of 1.3 per cent compared with 3.6 per cent over the preceding 12 months. Seasonally adjusted turnover of demand deposits at 224 standard metropolitan centers outside New York City (new series) rose to 34.6 in February from 33•8 in January. (March data not yet available). After increasing considerably early in 1964, turnover declined somewhat between May and October Subsequently, it rose moderately in each month and then substantially m February. Over January and February turnover averaged 5»2 per cent above the corresponding months last year. Seasonally adjusted time and savings deposits at all commercial banks increased $1.3 billion in March, well below the $2.3 billion average monthly rate in January and February but the same as in the Second half of 1964. Savings deposit growth continued large at city banks in March but expansion in time deposits slackened sharply compared with that in January and February. Outstanding negotiable CD's increased slightly further over the five weeks ending March 31, with expansion at New York City banks more than offsetting a decline at outside banks. Bank reserves. Seasonally adjusted total and required reserves rose further in March. Borrowings increased slightly and exceeded excess reserves, which declined substantially. Net borrowed reserves, after averaging 832 million over the first four reporting weeks, rose to $123 million in the week of March 31. The average level of borrowings rose to $416 million in March and that of excess reserves declined to $344 million. Reserves were supplied principally through Federal Reserve purchases of U. S, Government securities and absorbed through outflows of gold and currency. Banking Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System. 1.4.3 - EXHIBIT A, P a r i 1 L O A N S A N D I N V E S T M E N T S AT A l l C O M M E R C I A L B A N K S tail Wednesday of month, seasonally Billions adjusted of d o II o r i I O T A I LOANS AND INVESTMENTS LOANS U.S. GOVT. SiCURITliS OTHER SECURITIES I I I I I I I I I I II I II II I I IJUU 1961 1959 1962 1963 Exhibit A - Part II Total Date _!/ (In b iL 1 1 1 o n s Other U. S. Gov 1 t. securities securities of d o 1 1 a r s) 2/ 113.8 120.5 133.9 59.9 65.4 65.2 20.8 23.9 29.2 2/ 244.2 246.5 148.4 149.4 61.4 62.1 34.4 35.0 29 26 25 29 27 30 246.7 248.4 251.4 251.8 253.5 256.3 151.0 151.8 153.9 155.4 157.3 160.0 60.8 61.2 62.1 60.8 60.3 60.0 34.9 35.4 35.4 35.6 35.9 36.3 July 29 Aug. 26 Sept.30 Oct. 28 Nov. 25 Dec. 31 254.5 258.7 261.7 260.8 264.9 266.0 159.7 161.5 163.0 163.1 , 165.2 166.7 58.4 60.2 61.2 59.9 61.3 60.9 36.4 37.0 37.5 37.8 38.4 38.4 268.7 271.1 274.5 169.9 171.6 175.5 59.5 59.6 59.0 39.3 39.9 40.0 1963—Nov. 27 Dec. 31 1964--Jan. Feb. Mar. Apr. May June p p p p 2/ 1965—Jan. 27 p Feb. 24 p Mar. 31 p 1J 194.5 209.8 228.3 1960--Dec. 31 1961--Dec. 31 1962—Dec. 31 iy 2/ Loans Adjusted to exclude interbank loans. Estimated as of December 31. 1.4.3. - EXHIBIT •, rod I y t O A N S AT A l t COMMERCIAL B A N K S loll Wednesday of month, eoateoolly od|vslod Bllllone of doll I I I II I III II I Exhibit B - Part II Date Business Real estate Consumer (In 3 b i 1 1 i o n i 28.6 30.2 34.2 20.6 21.1 23.7 4.4 5.2 6.2 of Security do l i a r s ) 1960—Dec. 31 1961—Dec. 31 1962—Dec. 31 1/ 42.1 43.9 47.6 1963—Nov. 27 Dec. 31 1/ 51.5 52.0 38.8 39.1 26.5 26.7 7.3 6.7 29 26 25 29 27 30 52.5 52.9 53.0 53.6 54.1 54.6 39.5 40.0 40.4 40.6 41.0 41.4 26.8 27.1 27.4 27.6 27.8 28.0 7.5 6.9 7.3 7.4 7.7 8.0 July 29 Aug. 26 Sept.30 Oct. 28 Nov. 25 Dec. 31 55.1 55.5 56.1 56.3 56.8 57.6 41.7 42.0 42.5 42.8 43.1 . 43.5 28.2 28.4 28.7 28.9 29.1 29.4 7.8 7.8 7.6 7.1 7.7 6.9 59.3 60.4 60.6 43.8 44.3 44.6 29.7 30.1 30.3 7.6 7.0 7.9 1964—Jan. Feb. Mar. Apr. May June p p p p 1/ 1965—Jan. 27 p Feb. 24 p Mar. 31 p 1/ Estimated as of December 31. Exhibit C Changes in Loans and Investments at All Commercial Banks, Seasonally Adjusted (In billions of dollars) Item Loans and Investments 2/ 1 Q&4 Feb. Mar. Apr. May June ±kZ +^0 +0.4 +1£ +2.8 U. S. Gov't, securities +0.4 +0.9 -1.3 -0.5 -0.3 Other securities •0.5 +0.2 +0.3 Loans 2/ +0.8 +2.1 •1.5 Business +0.4 +0.1 Real estate +0.5 Consumer July T Q 6 S Aug. Sept. p Oct. p Nov. p Dec. p Jan. p k/ Feb. p Mar. p +Zzl +2^4 +2A 2ju2 +2i2 —1.6 +1.8 +1.0 -1.3 +1.4 -0.4 -1.4 +0.1 -0.6 +0.4 +0.1 +0.6 +0.5 +0.3 +0.6 y +0.9 +0.6 +0.1 +1.9 +2.7 —0.3 +1.8 +1.5 +0.1 +2.1 +1.5 +3.2 +1.7 +3.9 +0.6 +0.5 +0.5 +0.5 +0.4 +0.6 +0.2 +0.5 +0.8 +1.7 +1.1 +1.2 +0.4 +0.2 +0.4 +b.4 +0.3 +0.) +0.5 +0.3 +0.3 +0.4 +0.3 +0.5 +0.3 +0.3 +0.3 * +0.2 +0.2 +0.2 +0.2 +0.2 +0.3 +0.2 +0.2 +0.3 +0.3 +0.4 +0.2 Security -0.6 +0.4 +0.1 +0.3 +0.3 -0.2 -0.2 -0.5 +0.6 —0.8 +0.7 -0.6 +0.9 Nonbank financial +0.2 +0.4 +0.1 +0.2 +0.5 -0.7 +0.1 +0.3 +0.2 1/ +0.2 +0.5 Agriculture -0.2 +0.1 +0.1 +0.2 —0.1 +0.1 +0.2 +0.1 -0.1 +0.1 -0.1 +0.1 —0.2 +0.1 All other +0.3 +0.3 +0.5 +0.2 +0.6 -0.2 +0.1 +0.1 +0.2 +0.2 +0.7 +0.3 +0.5 +0.4 Total loans excluding security 3/ *1.5 +1.6 +1.7 +1.7 +2.1 +0.2 +1.3 +1.9 +0.8 +1.5 +2.1 +2.7 +2.5 +2.7 Total loans excluding security and nonbank financial 3/ +1.3 +1.2 +1.6 +1.5 +1.6 +0.9 +1.2 +1.6 +0.8 +1.3 +2.1 +2.7 +2.3 +2.2 1/ 2/ 3/ k/ y y y y (2) loan items and total loans are independently seasonally adjusted. Seasonally adjusted loans, by category, are experimental and are subject to revision. Less than $50 million. Adjusted to exclude interbank loans. Derived by addition of items and not by subtraction from total loans. Credit increase overstated by $200 million, about equally divided between loans and investments, as a result of a correction for reporting errors in one district. Exhibit D Changes in Loans and Investments at All Commercial Banks, at Weekly Reporting Banks, and at Other Banks, Not Adjusted for Seasonal. (In billions of dollars) L^st Wednesday of February to last Wednesday of March All commercial banks Total loans U. S. Gov't, securities Other securities Total Weekly reporting banks Total loans U. S. Gov't, securities Other securities Total Other banks Total loans U. S. Gov't, securities Other securities Total 1965 1964 +4.0 -1.5 +0.6 +3.1 +2.2 +3.1 -0.9 +0.3 +2.6 +0.9 —0.6 +0.3 +0.5 1963 +1.2 1962 1961 +1.5 —0.2 +0.9 -1.6 1/ +0.5 +2.7 -0.5 -1.6 +1.5 +0.8 +0.4 -1.4 +1.4 +0.7 +1.1 —0.2 +2.0 +1.2 -1.3 +0.8 +0.5 -1.0 +0.8 +0.5 -0.5 +0.3 +0.3 +0.2 +0.4 -0.2 +0.1 +0.? +0.8 y -1.1 +0.3 y +0.4 —0.3 -0.5 +0.3 -0.4 +0.1 +0.1 I960 -2.0 +0.7 -1.0 -1L -0.3 +0.3 -1.0 -11 —0.6 End of December to end of March All commercial banks Total loans U. S. Gov't, securities Other securities Total Weekly reporting banks Total loans U. S. Gov't, securities Other securities Total Other banks Total loans U. S. Gov't, securities Other securities Total 1965 y 1964 y 1963 y 1962 1961 I960 +2.6 -1.1 -3.9 +1.6 -1.5 -1.6 -1.3 -2.2 +1.5 -2.0 -2.5 -1.3 +0.8 -2.9 -0.9 -4.7 —0.4 4/+0.3 -1.9 +0.5 -2.5 +1.5 -3.0 -1.6 -1.2 -1.9 —0.9 +1.0 -1.9 -1.4 -2.0 +1.2 -2.3 -2.1 -1.1 +0.7 -2.5 -1.4 -3.2 +0.4 -0.7 +0.4 +0.2 +0.1 -0.2 +0.3 +0.3 -0.4 -0.2 +0.1 -0.4 +0.5 -1.5 +1.0 -0.5 +1.1 -0.9 +0.6 4/+0.8 +0.4 -2.5 +0.5 -0.7 +0.1 y +1.4 -1.7 -6.1 2/ -0.1 2/ -3.2 y y -3.3 y +0.5 -0.5 -0.2 -4.7 -0.2 -1.4 y I!# NOTE—Data exclude all interbank loans; call report data for weekly reporting banks used when available• 1/ Less than $50 million, 2/ In January 1959s total credit increased over 8400 million as a result of bank structure changes; loans, 3300 million; U. S. Gov't, securities, 3100 million; and other securities 3100 million. 3/ Estimated as of December 31, 1962, and December 31, 1964, for all commercial banks and weekly reporting banks and for all commercial banks, December 311 1963. 4/ Credit increase overstated by $200 million, about equally divided between loans and investments, as a result of a correction for reporting errors in one district. Exhibit & Changes in Commercial and Industrial Loans at Weekly Reporting Banks (In millions of dollars) T.a"he - Dprpmhpr f.n pnH r»f Margin End of Fmhrnarv t.n end nf Mar-rh i / Business of borrower 1965 D 1964 1963 1962 1961 1965,, 1964 1963 1962 1961 Food processors Commodity dealers Trade concerns Total + 22 - 153 * 327 + 196 - 15 -106 +203 + 82 -73 - 79 +138 - 14 - 80 - 56 +162 + + 36 39 99 24 -168 - 25 +380 +157 -467 -245 -107 -819 -371 — 69 - 96 -536 -345 - 77 - 9 -431 -271 - 22 -161 -454 Metals and products Textiles, apparel, etc. Petroleum, coal, etc. Other manufacturing and mining Public utilities Construction All other types of business Banker 1 s acceptances Other, mainly services * 477 + 148 + 158 +176 +100 + 59 +124 +137 +125 +245 +116 +132 +148 + 92 + 12 +788 +245 +422 +4l8 +183 +121 +158 +207 + 58 +272 +247 - 14 + 95 +178 + 63 + 227 + 55 7 + 123 - 42 + 165 + 89 - 90 + 34 +124 - 30 +154 +121 + 17 + 32 + 74 n.a. n.a. + 73 + 87 + 39 +122 + 36 + 5 +219 n.a. +112 -306 + 65 +351 n.a. n.a. +375 -233 - 42 + 33 n.a. n.a. +196 -288 + 18 + 79 n.a. n.a. + 89 -116 - 26 +271 n.a. n.a. Classified Unclassified +1,377 + 177 +574 +144 Total change +1,554 +718 1/ 2/ n.a. n.a. n.a. +594 + 87 + 2 +297 -296 +593 +616 + 56 +796 + 64 +657 + 70 +2,622 +305 +125 +189 + 21 + 21 + 80 + 14 +102 - 55 +672 +860 +726 +2,927 +314 + 42 + 94 + 4? ±JB Five most comparable weeks used throughout* Changes are compiled from December 23, 1964; December 25, 1963; December 26, 1962; December 27, 1961; and December 28, I960. Dates other than last Wednesdays of 1963 and 1964 were selected in order to avoid turnof-the-year dating differences. These data cannot be linked with all commercial bank data which are always for December 31. Exhibit F Loans and Investments at All Commercial Banks (In billions of dollars) Loans and investments U. S. Gov't. Other securities Total loans Business Real estate 58.2 66.4 60.9 60.9 58.9 61.0 66.6 66.4 17.9 20.6 20.6 20.6 20.5 20.9 23.9 29.3 93.2 97.5 102.8 102.8 110.0 116.7 123.9 137.9 40.5 40.4 42.5 37.8 40.2 43.1 45.2 49.1 23.1 25.3 26.9 26.9 28.1 28.7 30.3 34.3 4.2 4.7 4.1 4.1 4.9 5.1 (est. 169.3 184.4 184.2 184.2 189.5 198.5 214.4 233.6 1963- -June 29 July 31 Aug. 28 Sept .25 Oct. 30 Nov. 27 Dec. 31 (est. 7.3 239.1 237.8 237.1 241.9 242.4 245.0 252.4 63.5 62.5 60.9 61.8 62.0 62.3 63.4 32.4 32.9 33.7 34.2 34.5 34.1 35.1 143.1 142.4 142.5 146.0 146.0 148.6 153.9 49.9 49.0 49.2 50.1 50.6 51.9 53.7 36.7 37.3 37.8 38.2 38.6 39.0 39.2 6.9 6.4 6.1 7.4 6.5 7.0 7.9 1964- -Jan. 29 Feb. 26 Mar. 25 Apr. 29 May 27 June 30 July 29 Aug. 26 Sept. 30 Oct. 28 Nov. 25 Dec. 31 246.2 247.2 249.9 250.6 251.5 257.3 254.3 256.1 262.2 262.1 265.7 272.6 62.1 61.5 61.5 60.1 59.1 59.3 58.3 58.8 60.6 61.1 62.3 62.4 34.6 35.1 35.6 35.8 35.8 36.4 36.5 37.1 37.8 38.0 38.0 38.5 149.5 150.6 152.8 154.7 156.7 161.6 159.4 160.2 163.7 163.0 165.4 171.7 51.8 52.4 53.2 53.4 53.9 55.1 54.4 54.9 56.1 56.2 57.2 59.6 39.5 39.8 40.0 40.4 40.8 41.4 41.8 42.2 42.7 43.0 43.4 43.6 268.1 269.8 272.9 61.0 60.0 58.5 38.9 39.5 40.1 168.2 170.3 174.3 58.5 59.9 61.8 43.8 44.0 44.2 Date 1957--Dec. 1958- -Dec. 1959--June June Dec. 1960- -Dec. 1961--Dec. 1962--Dec. 31 31 24 24 31 31 30 31 (old) (new) 1/ P P P p (esl 1965- -Jan. 27 P Feb. 24 P Mar. 31 P Security Farm 4.1 5.0 5.0 5.0 5.0 5.7 Consumer 15.8 15.9 17.5 17.5 Nonbank financial institutions All other 7.2 8.2 8.8 7.1 21.4 23.7 5.9 7.1 7.1 7.3 8.5 7.5 7.2 6.8 7.0 7.3 7.4 7.4 25.5 25.7 26.0 26.1 26.3 26.5 26.7 8.9 8.7 9.1 8.6 8.6 10.2 11.0 10.8 10.8 11.0 11.1 11.3 11.8 7.1 6.9 7.1 7.2 7.5 8.2 7.6 7.2 8.0 7.1 7.4 8.1 7.5 7.4 7.5 7.6 7.7 7.7 7.6 7.4 7.5 7.6 7.8 7.8 26.6 26.8 27.0 27.4 27.8 28.2 28.5 28.7 28.9 29.0 29.1 29.4 8.6 8.8 9.3 9.3 9.3 10.5 9.5 9.7 10.2 9.6 9.7 11.4 11.5 11.7 11.8 12.4 13.0 13.8 13.3 13.4 13.6 13.8 14.0 15.1 7.2 7.0 7.7 8.0 7.9 29.5 29.7 29.9 9.9 10.1 10.7 14.8 15.1 15.3 6.2 6.2 8.0 18.8 20.6 8.6 7.6 8.1 8.7 9.8 10.7 p - Preliminary. 1/ Structure changes in 1959, on balance through August, added almost $1 billion total credit: $600 million in loans; $300 million in U. S. Government securities; and $100 million in other securities. Real estate loans increased about $300 million; business loans $100 million- consumer loans $100 million; and other loans $100 million. ' NOTE—Data exclude interbank loans. Total loans are after and types of loans before deductions for valuation reserves. Consumer and "other loans" are partly estimated for all dates. Other data are partly estimated on all but June and December call dates. Beginning June 24, 1959, "business loans" and "all other loans" have been revised to exclude loans to nonbank financial institutions. Exhibit G Ratios to Total Deposits 1/ U. S. Government securities maturing within one year L 0 A N S # Date #948- -Dec. 1949- -Dec. 1950- -Dec. 1951- -Dec. 1952- -Dec. 1953- -Dec. #954- -Dec. 1955- -Dec. 1956- -Dec. 1957- -Dec. 1958- -Dec. 1959- -Dec. # 6 0 - -Dec. 1961- -Dec. 1962- -Dec. All commercial banks Total Member banks Reserve city banks New York City of Other City Chicago Country All commercial banks 31 31 31 31 31 31 31 31 31 31 31 31 31 31 28 31.2 31.1 35.8 37.2 39.3 40.5 40.3 45.8 48.8 49.7 48.4 54.0 55.1 54.5 56.5 31.3 30.9 36.1 37.6 39.9 41.1 40.7 46.7 50.1 51.0 49.4 55.6 56.5 55.7 57.7 35.9 34.9 42.5 46.3 50.6 50.6 46.8 56.7 61.7 61.9 57.7 67.3 65.9 65.0 67.9 30.4 25.6 32.3 36.2 38.9 39.1 38.3 46.3 52.7 55.2 49.4 58.2 60.8 58.0 61.4 33.4 32.4 38.1 39.4 41.1 42.2 41.9 48.5 52.7 53.3 51.3 58.2 59.0 57.7 60.1 27.1 28.5 31.5 32.1 33.9 36.1 37.1 40.7 42.6 44.1 44.4 48.2 50.3 50.2 51.7 1963- -Nov. 27 Dec. 25 59.0 58.6 60. 2 59.9 69.3 67.4 61.2 62.1 63.5 63.3 54.0 53.8 1964- -Jan. 29 Feb. 26 Mar. 25 Apr. 29 May 27 June 30 July 29 Aug. 26 Sept. 30 Oct. 28 Nov. 25 Dec. 30 p p p p 58.8 59.3 59.3 60.2 60.8 60.7 61.1 61.1 60.5 60.5 60.8 61.1 60.0 60.5 60.5 61.4 61.9 61.9 62. 2 62. 2 61.6 61.6 62.0 62.2 67.3 67.6 67.5 68.4 69.3 69.1 68.7 69.0 68.0 67.8 69.4 70.1 62.1 62.3 62.5 61.9 61.4 62.6 61.3 62.7 62.3 62.0 62.1 65.1 63.9 64.2 64.1 65.1 65.4 64.9 66.0 66.1 66.0 65.5 66.1 65.3 53.9 54.5 54.7 55.6 56.1 56. 2 56.4 56.2 55.8 55.8 55.9 56.2 7.2 6.8 6.5 6.3 6.4 6.6 5.7 6.3 6.9 7.2 8.0 8.0 -Jan. 27 p Feb. 24 p Mar. 31 P 61.0 61.7 62.1 62.2 63.0 63.3 69.9 71.8 71.9 63.4 65.0 67.6 65.4 66.4 66.1 56.3 56.4 56.9 7.1 6.9 n. a. e • 2/ 2/ 2/ 3/ 14.2 19.2 15.2 9.8 11.7 16.9 10.0 5.1 7.5 8.4 8.3 7.4 8.7 11.2 9.5 7.3 7.5 Total loans (adjusted to exclude loans to banks); U. S. Government securities maturing within one year estimated on basis of Treasury survey of ownership and total deposits (adjusted to exclude cash items in process of collection). Prior to 1951, data are on call basis and beginning in 1951, they are on maturity basis. On a call basis, data for 1951 and 1952 are 21.5 and 19.1 respectively. 3/ Estimated for December 31. NOTE--Comparability of figures affected by changes in Federal Reserve membership, mergers, etc.; by changed in the reserve classification of cities or individual banks, and by changes in items. J I 1.4. 3 . I X H I B IT H, Port 1 DEPOSITS A N D CURREJNCY A N D T U R N O V E R OF D E M A N D DEPOSITS Seasonally ,u n v adjusted; deposits, semi-monthly averages of daily figures; r ? «lt__monthly A n n u o 1 r a , e Billions of d o l l a r s ' m M O N I Y SUPPtY JIQ lURNOVfl Outude New York City 120 100 limi A M P SAVINGS DEPOSITS? •0 20 U.S. G O V I . D E P O S I T S ? 1959 19*0 1961 19*2 19*3 19*4, 19*1 * A l l commercial banks.1 Exhibit H - Part II S e a Period s o n a 1 1 y M o n <a y Total A d j u s t e d S u p ;j 1 y Demand deposits Currency Time and savings deposits D a t a Turnover outside NY City* U. S. Gov't, deposits 1962—December 1963—December 1964--December 147.6 153.2 159.4 117.1 120.7 125.2 30.6 32.4 34.2 97.9 112.3 126.5 31.3 33.9 * 33.4 5.6 5.2 5.5 1965—January February March p 159.8 159.1 159.8 125.3 124.5 125.2 34.5 34.6 34.6 128.9 131.1 132.4 33.8 34.6 n.a. 4.2 5.8 6.7 1965—Jan. (1) (2) Feb. (1) (2) Mar. (1) (2) p 160.1 159.5 159.3 158.8 160.0 159.6 125.8 124.9 124.7 124.3 125.4 125.0 34.4 34.5 34.6 34.5 34.7 34.6 128.0 129.7 130.8 131.6 132.3 132.6 n. a. n.a. n.a. n. a. n.a. n.a. 4.7 3.7 4.8 6.9 5.2 8.1 p - Preliminary. * Beginning January 1964, data are for 224 metropolitan centers outside New York City. New figure for January 1964 is 32.3 compared with 34.8 on old basis. 14.3 - EXHIBIT I, Pari I T I M E A N D S A V I N G S DEPOSITS AT MEMBER B A N K S I N L E A D I N G CITIES Wednesday figures 196 5 1964 196 3 Exhibit I - Part II T i m e Period and S a v i n g s Savings Total (I n m i l l i o n s D e p o s i t s Individuals, Other time partnerships, deposits 1/ and corporations of d o l l s i r s) 26 27 26 31 30 38,175 41,472 50,011 59,227 66,881 27,819 30,082 34,712 38,083 40,698 5,480 5,969 9,080 13,310 16,407 4,876 5,421 6,219 7,834 9,776 1965—Jan. 27 Feb. 24 69,077 70,144 41,213 41,623 17,959 18,266 9,905 10,255 70,341 70,828 70,651 71,005 71,140 41,744 41,910 42,028 42,096 42,315 18,359 18,613 18,250 18,465 18,464 10,238 10,305 10,373 10,444 10,361 1961--Apr. Dec. !962--Dec. 1963-~Dec. 1964--Dec. Mar. \l 3 10 17 24 31 Includes States and political subdivisions, U. S. Government, foreign governments and official institutions, and interbank. • e • e # # e e # * Exhibit J Member Bank Reserves (Based on averages of daily figures; in millions of dollars) Free reserves (excess reserves minus borrowings) Date All member Monthly averages: 1956--December 1957--December 1958--December 1958—December 1960--December 1961--December 1962—December Reserve City Banks New York City of Other City Chicago Country Excess reserves Borrowings All member All member Total reserves held seasonally adjusted All member - 36 -133 - 41 -424 669 419 268 - 91 -105 - 80 -109 10 - 50 - 62 - 86 - 77 - 32 -104 - 4 - 22 - 11 -203 -228 -197 -449 80 20 - 52 344 277 268 237 583 471 394 652 577 516 482 756 568 572 688 710 557 906 87 149 304 17,185 17,077 17,942 17,978 18,283 18,977 19,548 94 33 209 - 99 - 74 19 - 11 - 36 - 21 - 93 -138 -122 298 281 334 407 409 536 313 376 327 19,923 19,994 20,240 1964—January February March April May June July August September October November December 175 89 99 167 82 120 135 83 89 106 - 34 168 - 22 - 7 - 16 - 1 - 25 -- 17 - 21 - 16 - 34 — 86 - 14 - 22 89 86 14 2 13 19 7 33 26 16 31 -113 - 88 - 50 - 77 -112 -114 -102 -154 -140 -116 -178 -103 332 273 255 259 221 248 273 265 278 282 246 315 431 393 358 380 337 390 400 417 420 415 396 411 256 304 259 213 255 270 265 334 331 309 430 243 20,248 20,278 20,459 20,482 20,404 20,682 20,665 20,753 21,012 20,949 21,033 21,082 1965--January February March p 103 35 - 72 - 70 - 90 - 97 - 17 - 36 - 45 - 82 -141 -148 270 302 220 402 440 344 299 405 416 21,174 21,355 21,509 1963--October November December NOTE--Beginning July 26, 1962, figures for both New York and the City of Chicago include banks formerly classified as central reserve city and three banks whose classification as reserve city is continued. Most data for 1964 revised slightly. p - Preliminary. e Exhibit K Liquid Assets Held by the Public - Seasonally Adjusted Series 1/ (Amounts in billions of dollars; ratios expressed as percentages) Time de posits End of year or month Demand deposits and currency 2/ Total 1 Consnercial banks 3/ 2 3 Postal Savings Sys tem Mutual savings banks 4 Savings U. S. Gov't, and loan savings shares 4/ bonds 5/ 5 U. S. Gov't, securities maturing within one year 6/ Liquid assets to gross national product 7/ 9 Ratios: Demand deCommercial posits and bank deposits currency to and currency to gross nation- liquid assets al product 7/ ( 2 + 3 4-1) 10 11 6 7 332.5 343.2 356.0 373.1 393.9 399.2 424.6 459.0 130.2 133.3 134.6 133.5 138.8 139.7 138.4 142.6 144.8 48.2 49.7 52.0 57.5 65.4 67.4 73.1 82.5 98.1 26.3 28.1 30.0 31.6 33.9 34.9 36.2 38.3 41.4 2.1 1.9 1.6 1.3 1.1 0.9 0.8 0.6 0.5 27.2 32.0 37.0 41.7 47.7 54.3 61.8 70.5 79.8 55.6 55.9 54.8 51.6 50.5 47.9 47.0 47.4 47.6 30.6 31.6 33.2 38.8 35.6 48.8 41.9 42.6 46.8 85.9 81.3 79.6 80.3 80.2 80.5 79.2 78.5 80.4 35.0 32.6 31.2 30.3 29.9 28.7 27.6 26.4 25.4 1963 Nov. Dec. r 493.3 r 495.4 149.6 149.6 111.9 112.9 44.6 44.5 0.4 0.5 r 90.1 r 90.9 48.6 49.0 48.1 48.1 81.9 24.8 1964 Jan. Feb. Mar. Apr. May June r r r r r r 149.5 148.4 150.2 149.9 149.6 151.1 114.8 115.5 115.9 117.0 117.9 118.6 45.0 45.4 45.6 46.0 46.3 46.8 0.5 0.4 0.4 0.4 0.4 0.4 r r r r r r 91.4 92.4 93.5 94.1 94.9 95.8 49.1 49.0 49.0 49.1 49.1 49.2 48.6 48.4 49.3 49.5 49.4 49.4 r 511.8 r 514.8 r 520.8 522.9 r 526.3 529.6 151.8 152.1 154.8 154.6 154.6 156.2 119.8 120.6 121.9 123.7 125.7 126.9 47.1 47.5 47.9 48.3 48.6 48.9 0.4 0.4 0.4 0.4 0.4 0.4 r 96.6 r 97.8 r 99.1 r 99.8 ri00.8 ri01.3 49.3 49.3 49.4 49.4 49.5 49.9 46.7 47.1 47.4 46.8 46.7 46.1 r 533.9 r 535.5 541.0 155.4 j r 154.2 157.9 130.3 131.6 132.6 49.4 49.6 49.8 0.4 0.4 0.4 rl01.7 rl02.6 103.3 50.0 49.9 49.9 46.8 47.3 47.1 1954 1955 1956 1957 1958 1959 1960 1961 1962 July Aug. Sept. Oct. Nov. Dec. 1965 Jan. Feb. Mar. 320.2 p p p p i i 498.9 499.6 504.0 506.0, 507.6 511.4 8 82.0 24.5 82.0 24.3 . 55.7 55.0 54.4 53.6 54.8 52.6 53.0 53.0 52.9 53.0 53.0 53.0 52.8 52.8 r 52.7 52.7 52.7 81.9 24.3 82.7 24.4 53.1 53.0 r 53.1 53.2 53.3 r 53.4 24.0 53.5 53.4 53.7 | p p p For footnotes see next page. r - Revised. 1 j | 82.4 Exhibit K (Continued) Excludes holdings of the United States Government, Government agencies and trust funds, domestic commercial banks, and Federal Reserve Banks. Adjusted to avoid double counting whenever possible. All series adjusted for seasonal variation by the X-9 variant of Method II developed by the Bureau of the Census. Data are for demand deposits adjusted and currency outside banks and are as of the last Wednesday of the month. In concept the figures agree with the daily average money supply described in detail in the Federal Reserve Bulletin for August 1962, p. 941, except that demand deposits held by mutual savings banks and by savings and loan associations have been deducted to avoid double counting. Demand deposits of commercial banks in Alaska and Hawaii are included beginning January 1959 and August 1959, respectively, except that one national bank in Alaska and one national bank in Hawaii were included in April 1954 and April 1959, respectively. Demand deposits due to banks in United States possessions are included throughout . Total time deposits at commercial banks except interbank, U.S. Treasurer's open account, and postal savings redeposited in commercial banks. Data are as of the last Wednesday of month except June 30 and December 31 when call data for these dates were used when available. Time deposits of commercial banks in Alaska and Hawaii and time deposits due to banks in U. S. possessions are included as indicated for demand deposits in footnote 2 above. Figures compiled by the Federal Savings and Loan Insurance Corporation except that prior to 1955 data are Board estimates based on monthly figures of inflow of new savings and withdrawal of savings capital compiled by the Federal Home Loan Bank Board. Includes all types of savings bonds held by investors other than commercial and mutual savings banks and U.S. Government agencies and trust funds. Holdings of savings and loan associations are also excluded beginning in February 1960, the earliest date for which separate figures for these institutions are available. Figures are from data compiled by the U. S. Treasury Department. Beginning December 1950 figures include Treasury marketable securities and Federal agency securities maturing within one year, except holdings of domestic commercial, mutual savings, and Federal Reserve Banks, Government agencies and trust funds, and beginning February 1960, savings and loan associations. Figures have been adjusted to include partially tax-exempt securities 12 months prior to first call date, and prior to 1956, nonmarketable Treasury savings notes with maturities up to 36 months. Prior to December 1950 figures for marketable issues include securities callable within one year. Figures represent par value and are from the U. S. Treasury Department's Survey of Ownership of U. S. Government Securities. Gross national product figures are available quarterly and annually only. Data for total liquid assets used in computing these ratios are quarterly averages calculated for four dates (each month of the current quarter and the last month of the preceding quarter).
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