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L.4.3 • Not fdr publld^tiaft ; ~f:\~ - # i '= ;,.<•• ;•'••••«'1 r*«; > » d BANKING • : 4 ftApril; •^•0:: 's • . * U 1 17..1967. ' "•/" '• . S <: ' • •' r. y -MONETARY PteVEIiOMrrS IN MARCH 1967 ; " SummafyCommercial bank credit rose $5.3 billion in March, the largest dollar increase tin record and the fastest rate of expand ion sine 6 Jun# 1958; PtlrcKaSes of U.S. Governments setiurities Were? extremely large, and acquisitions of municipals and other securities continued at about the same rapid pace of the preceding two months. Loan growth was also substantial, reflecting for the most part large increases' in security and business loans. The money supply rose $2.4 billion over the month. Time arid savings deposits continued their rapid expinsion, but at a slightly lower rate than in January and February. Total and fequired reserves increased further"! Over the four statement weeks ending March 29, borrowings fell considerably, and free reserves rose to an average of about $216 million. > Changes In. Commercial.Bank Credit* i Money ..Supply .and Time Deposits ... (Seasonally adjusted) „ (per cent) # Total 1 oar a ,and investments ® ® Dec.;. 19661967 1st. Mar. Mar. • Qtr« 1967 20.1 13.9 12.7 July 1966Nov. 1966 0.5 1966 1st 2nd Half Half . Year 5.9 9.8 1.9 •: J 1965 Year 10,2 -9.0 -5.9 -5.6 -1.2 12.5 5.6 15.8 4.1 14.7 9.5 14.7 7.6 20.2 14.3 18.5 -2.7 —0.9 4.7 1.9 4.7 5.,4 . 6.1 10.3 8,4 16.0 U.S. Gov't, securities 59.0 24; 3 26.7 -8.5 -2.9 Other securities 28.4 29.8 22.4 -1.5 Total loans 8.0 7.5 6.9 3.9 Business loans 11.9 11.6 8.7 .'•I' Money supply 17.6 6.1 • 6.6 Time and savings deposits at all commercial banks 15.4 . 18.5. 16.3 * - Where necessary, changes in loans and othersecurities described abqve are adjusted for the definitional shift of about $1 billion of participation certificates from loans to other securities on June 30, 1966. Changes in total credit, total,- lpans, and total ;time and .savings,deposits .described, above are also adjusted for the ^eduction of $1.1 billion of ^alagce accumulated for the. payment of persons^ loans excluded on June 9 , .a .result of a change in Federal Reserve regulations affecting reserve requirements. I« -2- Bank credit. Banks increased their holdings of U.S... ggveyyaent securities at an annual rate of 59 per cent in March, probably "reflecting in part acquisitions of the $2.7 billion. issye of tax anticipation bills delivered on March 13, 50 per cent' payable'through credit tro *tdx and loan accounts. Purchases were especially heavy at large city banks, where reductions usually occur in this period. Since the easing of policy in late November, the increase in holdings of Governments--mainly in Treasury bills and 1-5 year coupon issues--has nearly offset the $4,8 billion reduction over the first eleven months of 1966. .;' Banks further increased their liquidity by adding substantially to their portfolios of other securities. For the third consecutive month, holdings of these securities increased $1.2 billion, yielding a quarterly rise greater than that over the entire year 1966. . At city banks where most of the expansion occurred, a substantial part of the increase continued to be in tax warrants and other short-term municipals. Total loans rose $1.4 billion in March;-slightly less than half the large January increase, but more than in any other month since July. The uneven trend in total loans in recent months has reflected mainly erratic movements in both business and security loans. .Since the shift in monetary policy in late November, loans--despite the $600 million decline in February-have increased at an annual'rate of nearly 7 per cent, almost twice the growth rate over the five preceding months, but only half that of the first six months of 1966. ~v Security loans increased nearly $1 billion in March, following a • large decline in the previous month. The substantial March rise represented at least in part a larger than usual shift in dealer and broker borrowing from corporations to banks, as corporations came under pressure to meet heavy tax ' payments. ;f : • !• . • ' > Business loans increased $800 million ovgr the month, following only nominal change in February. Ttie March growth! was associated in part with heavyt tax and dividend payments* Over the past four months, business loans have increased at about the sank rate as in the July-November period, or less than half the rapid pace over thee first half of 1966. At large banks in New York City, March borrowing by nonfinaneial businesses was somewhat larger than in comparable weeks of other recent years, while at large banks outside New York City borrowing was slightly weaker than in the past two years, but stronger than in 1963 and 1964. In March, as well as in the first quarter as a whole, practically allthe strength in business loans was accounted for by increased lending to the metals industry--principally machinery and other fabricated metals--and by * -3- unusually large additions to holdings of bankers' acceptances. In midst oth6r industry categories, outstanding loans expanded only moderately, or, as ih the case tif food, trade, and other categories where borrowing is generally associated with inventory demands, declined more than usual. Real estate loans continued to expand in March at approximately the same moderate pace of other recent months. As in January and February, consumer loans rose only slightly. Money supply and time deposits. The money supply surged forward in March at the very rapid annual rate of 17.6 per cent, representing for the most part a sharp expansion of private demand deposits. Since the end of November, the money stock has risen $3.7 billion, almost twice the amount of the decline over the June-November period. U.S. Government deposits seasonally adjusted, declined only slightly in March. Time and savings deposits increased at an annual rate of 15.4 per cent over the month—a rapid pace, but somewhat below that of the two preceding months. Over the first quarter as a whole, time and savings deposits have risen at an annual rate of 18.5 per cent, more than twice as fast as the pace over the year 1966. At large city banks greater than usual inflows of consumer-type deposits accounted for a major part of the net rise in total time and savings. This probably reflected some return of funds to banks from market instruments as market yields declined further during March, as well as the relatively low level of consumer purchasing. At country banks inflows of savings deposits were quite large relative to other recent months. In addition, city banks were able to add about $750 million to their outstanding CD's in March, despite maturities over the month of $4.3 billion. In fact, by early March outstanding CD's had climbed from the mid-December low to a level exceeding the previous August peak. Growth in CD's, as well as in time deposits other than CD's, continued to be concentrated at large banks outside New York City. Bank reserves. Total and required reserves rose faster in March than the advanced pace of the preceding*two months. Excess reserves dropped slightly, while borrowings fell considerably. Over the four statement weeks ending March 29, free reserves rose to an average of $216 million, the largest increase since April 1963. The average effective rate on Federal funds declined from 5.00 in February to 4.53 in March. On a monthly average basis approximately $630 million in reserves were released as a result of a change in reserve requirements. System purchases of U.S. Government securities added to member bank reserves, while a reduction in float and currency outflows were the chief factors absorbing reserves. Banking Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System. L . 4 . 3 - EXHIBIT A, PART 1 LOANS AND I N V E S T M E N T S AT ALL C O M M E R C I A L B A N K S Last W e d n e s d a y of m o n t h , s e a s o n a l l y adiu-sted Billions of d o l l a r s 400 TOTAL LOANS AND INVESTMENTS 300 200 LOANS 100 U.S. GOVT. SECURITIES OTHER SECURITIES' 1961 1962 1963 1964 1965 1966 1967 Exhibit A - Part II Date Total 1/ ! | Loans 1/ ( I ri b i l l i o n s U.S. Gov' t securities of Other securities d o 1 1 a r s ) 1962--Dec. 1963--Dec. 1964--Dec. 1965--Dec. 31 2/ 31 2/ 31 31 227.9 246.2 267.2 294.4 134.1 149.7 167.4 192.0 64.5 61.5 61.1 57.7 29.2 35.0 38.7 44.8 1966--Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 26 23 30 27 25 30 27 31 28 26 p 30 p 31 2J 297.4 297.5 300.3 302.9 304.9 307.7 3/ 309.2 310.8 308.7 308.1 308.4 310.7 194.5 196.2 198.6 200.8 202.3 204.0 3/ 206.4 206.6 206.1 207.3 207.3 208.2 58.0 55.9 56.0 55.9 55.1 55.1 54.4 56.1 54.3 52.4 52.9 54.3 44.9 45.4 45.7 46.2 47.4 48.6 3/ 48.5 48.1 48.3 48.4 48.3 48.3 1967--Jan. Feb. Mar. 25 p 22 p 29 p 314.5 316.2 321.5 211.3 210.7 212.1 53.8 54.9 57.6 49.5 50.7 51.9 1/ 2J 3_/ Adjusted to exclude interbank loans. Estimated as of December 31, Beginning June 9, loan data exclude the $1.1 billion of balances accumulated for payment of personal loans. Beginning June 30, total loans exclude, and other securities include, about $1 billion of participation certificates. 1.4.3 - EXhSr B, P a r t 1 L O A N S AT ALL C O M M E R C I A L B A N K S Last W e d n e s d a y Billions of d o l l a r s of m o n t h , s e a s o n a l l y a d j u s t e d 80 BUSINESS REAL ESTATE CONSUMER SECURITY 11 i i i i i i ii ii ii ii i i i i i i i 1960 1961 1962 1963 1964 1965 1966 Chart revised for Business Loans beginning July 1966. Exhibit B - Part II Business Date (In 1962--Dec. 1963—Dec. 1964—Dec. 1965--Dec. 31 1/ 31 1/ 31 31 47.6 52.0 58.4 69.2 Security Real Estate Consumer b i l l i o n 34.2 39.1 43.5 49.2 of d o 1 1 a r s ) 6.2 23.7 6.7 27.2 31.1 7.1 7.2 35.8 1966--Mar. 30 Apr. 27 May 25 June 30 July 27 Aug. 31 Sept.28 Oct. 26 p Nov. 30 p Dec. 31 p i / 72.2 72.9 74.2 76.2 77.6 77.7 78.2 78.9 79.1 79.1 50.8 51.2 51.5 51.9 52.2 52.7 53.1 53.4 53.7 54.0 36.9 37.0 37.3 37.5 37.8 38.1 38.3 38.3 38.7 38.9 7.2 7.9 7.7 8.3 7.4 8.4 6.5 6.6 6.6 7.1 1967--Jan. 25 p Feb. 22 p Mar. 29 p 80.5 80.6 81.4 54.3 54.6 54.9 39.0 39.1 39.2 8.4 7.2 8.1 1/ Estimated as of December 31. p - Preliminary Exhibit C Changes in Loans and Investments at All Commercial Banks, Seasonally Adjusted (In billions of dollars) 19()7 1966 Item May Jan. Feb. Mar. Apr. Loans and Investments 2/ + 3.0 +0.1 +2.8 + 2.6 +2.0 U. S. Gov't, securities 4-0.3 -2.1 +0.1 -0.1 -0.8 Other securities 4-0.1 +0.5 +0.3 +0.5 Loans 2/ 4-2.5 +1.7 +2.4 Business 4-1.3 +0.8 Real estate 4-0.5 Consumer June July Aug. Sept. Oct. P Nov. P +3.9 4 ' +1.5 +1.6 -2.1 -0.6 +0. 3 -0.7 +1.7 -1.8 -1.9 +0.5 +1.2 4-0. 2 4' % -0.1 -0.4 +0.2 +0.1 +2.2 +1.5 +3.8 4 ' +2.4 +0.2 -0.5 +0.9 +0.7 +1.3 + 2.0 +1.4 +0.1 +0.6 +0.5 +0.4 +0.3 +0.4 +0.3 +0. 3 +0.2 +0.6 +0.1 +0.3 +0.2 Security 4-0.8 -1.1 +0.3 +0.7 -0.2 Nonbank financial 4-0.1 1/ +0.7 +0.3 1/ 1/ +0.1 All other -0.3 +0.1 Total loans excluding security 3/ 4-1.9 +1.7 Jan.p Feb. P Dec. p Mar. p + 5.3 +1.4 -0.5 4-1.1 + 2.7 -0.1 1/ +1.2 +1.2 + 1.2 +1.2 i/ +0.9 +3.1 -0.6 + 1.4 +0.5 +0.7 +0.2 1/ +1.4 +0.1 +0.5 +0.4 4-0. 3 +0.3 +0. 3 +0.3 +0.3 + 0.3 +0.3 +0. 3 +0.2 1/ +0.4 +0.2 +0.1 +0.1 + 0.1 +0.6 -0.9 +1.0 -1.9 +0.1 i/ +0.5 -1.2 + 0.9 -0.5 +1.2 -0.8 -0.9 +0.3 1/ i/ -0.2 -0.5 1/ 1/ +0.3 -0.24/ +0.3 +0.5 1/ -0.3 1/ 1/ I -0.1 1/ 1/ +0.5 1/ +0. 3 +0. 6 4/ 1/ -0.5 -0.2 -0.2 -0.3 +0.1 1 +0.1 i -0.2 + 0.2 +3.3 +1.5 +2.0 +4.2 +1.5 1/ +1.2 +0.5 +0.6 +0.4 I +1.6 -0.2 + 1.4 +0.6 +0.3 +0.9 +0.9 +0.5 j +1.8 +2.3 +3.0 +2.5 ^ +0.6 +1.2 +2. 6 +1.7 4-1.8 i ... i 1 1= 1 rl 1 i 1 LViauai loan items may uul auu uu tuaugc ah v w a * \/ o-, ,. NOTE-(2) loan items and total loans are independently seasonally adjusted. Seasonally adjusted loans, by category, are experimental and are subject + 1.4 Agriculture 1/ I Total loans excluding security and nonbank financial 3/ I ! -0.2 + ±hl to revision. 1/ Less than $50 million. 2/ Adjusted to exclude interbank loans. 3/ Derived by addition of items and not by subtraction from total loans. 4/ Allowance has been made in the monthly changes in total bank credit, total loans and "all other" loans for the $1.1 billion of balances accumulated for the payment of personal loans excluded from time deposits and from loans on June 9. Allowance has been made in the monthly changes in total loans, other securities, agricultural loans and "all other loans" for approximately $1 billion of participation certificates shifted from loans to other securities on June 30, 1966. 5_/ At large banks, bankers' acceptances increased $154 million in March 1967, compared with an increase of $32 million in March 1966, and a decline of $30 million in March of both 1965 and 1964. (See Exhibit E). Data on individual loan categories are not for publication 00 o" +3.8 Exhibit D Changes in Loans and Investments at All Commercial Banks, at Large Banks, and at Other Banks, Not Seasonally Adjusted (In billions of dollars) Last Wednesday of February to last Wednesday of March Item All commercial banks Total loans U. S. Gov't, securities Other securities Total Large banks 3 / Total loans U. S. Gov't, securities Other securities Total Other banks 3 / Total loans U. S. Gov't, securities Other securities Total 1967 1966 1965 1964 +3.0 + + + 4.0 1.9 0.3 2.5 + + + 4.0 1.5 0.6 3.2 + 2.2 4- 1.0 + 4.1 + + 2.7 1.1 0.1 1.6 + + + 3.1 0,9 0.3 2.6 + + + + 1.4 0.2 0.4 2.0 + + + + + + + 1.3 0.8 0.4 0.9 + + + 0.9 0.6 0.3 0.6 4 + + 0.8 0.2 0.1 0.7 + 1.2 + 1.3 + 5.5' + 1.9 + 1.1 1.1 0.1 0.3 1.4 1/ + 0.5 + 2.7 1963 1962 1961 + 1.2 - 0.5 + 0.8 + + + 1.5 1.6 0.9 0.8 + - 0.2 1.6 0.4 1.4 + 0.7 i/ + 0.5 + 1.2 + + + 1.1 1.3 0.8 0.5 + - 0.2 1.1 0.3 1.0 + + + + + + 0.4 0.3 0.1 0.3 1/ - 0.5 + 1.5 0.5 0.5 0.3 0.3 + 0.1 1 1 - 0.4 End of December to etid of March Item 1967 2/ 1966 1965 1964 2/ 1963 2/ 1962 1961 All commercial banks Total loans U. S. Gov't, securities Other securities , Total + + + 3.0 1.5 3.2 1.7 + + - 0.2 4.1 0.5 3.3 + + 3/ 2.4 4.0 1.5 l! + - 1.1 1.9 0.5 2.5 + - 1.5 1.6 1.4 1.7 + - 1.3 2.2 1.5 2.0 + - Large Banks 3/ Total loans U. S. Gov't, securities Other securities Total + + + 3.0 1.6 2.6 1.2 - 0.1 - 3.4 1/ - 3.6 + + - 1.7 3.3 1.0 0.5 + - 1.6 1.2 0.4 2.5 + - 1.9 0.9 1.0 1.9 + - 1.4 2.0 1.2 2.3 - 2.1 -1.1 + 0.7 - 2.5 Other banks 3/ Total loans U. S. Gov't, securities Other securities Total 1/ - 0.1 + 0.6 + 0.5 + + + + + + 0.7 0.7 0.5 0.5 + 0.5 - 0.7 + 0.1 + + + 0.4 0.7 0.4 0.2 + + + 0.1 0.2 0.3 0.3 + - 0.3 0.7 0.5 0.3 1/ NOTE—Data exclude all interbank loans; call report data for large banks used when available. V Less than $50 million. 2/ Based on estimated data for December 3 1 , 1 9 6 6 , 1 9 6 3 , and 1 9 6 2 , for all commercial banks and for December 3 1 , 1966 and 1 9 6 2 , for large banks. 3y Based on revised coverage beginning July 1966 and January 1 9 6 7 . 2.5 1.3 0.8 2.9 0.4 0.2 0.1 0.4 • • • • • • • • • Exhibit E Changes in Commercial and Industrial Loans at Weekly Reporting Banks (In millions of dollars) Late December to late Late ]February to late y[arch 1 / Business of borrower Food processors Commodity dealers Trade concerns Retail trade Wholesale trade Metals Primary metals Machinery Transportation equipment Other fabricated metals Textiles, apparel, etc. Petroleum Chemicals Other durable manufacturing Other nondurable manufacturir 5 Mining Public utilities , total Transportation 3/ Communication 3/ Other public utilities Construction All other types of business Bankers' acceptances Services 3/ Other Foreign business concerns 3/ Classified Unclassified Total Change 1964 1966 1965 +211 + 87 + 6 9 - 49 - 31 + 88 + 25 -144 - 8 +279 +154 + 15 +110 + 55 •tl-,388 +170 - 13 -100 +241 +161 + 80 +421 + 97 +165 +144 + 15 +180 + 9 +189 +103 + 76 + 26 + 89 n. a. n.a. n.a. + 38 +165 + 32 n.a. +133 n.a. +1,424 +157 + 17 -155 +338 +199 +139 +475 + 72 +293 - 4 +114 +148 + 38 +121 + 96 + 68 + 63 + 52 n.a. n.a. n. a. - 14 +131 - 30 n.a. +161 n.a. +1,378 +201 - 15 -106 +203 +145 + 58 +176 + 62 + 11 + 19 + 84 +100 - 63 +122 + 90 + 34 - 35 - 90 n.a. n.a. n.a. + 34 +124 - 30 n.a. +154 n.a. +574 +144 +1.558 41,581 +1,579 +718 1967 -150 - 41 + 35 - 41 + 76 +800 + 44 +476 +137 +143 +131 —* —* 1966 1965 n. a. n. a. n.a. + 32 + 74 n.a. n.a. n.a. n. a. +617 + 55 -321 -107 +379 +236 -142 +285 + 93 A, 369 - 27 - 39 -100 - 5 - 11 + 6 +683 +153 +213 +125 + 96 +325 +149 +330 +156 + 93 +118 -123 n.a. n.a. n.a. + 36 +242 - 1 n.a. +243 n<a. +1,769 +242 -179 - 20 +540 +414 +126 +782 + 92 +457 + 64 +169 +248 +166 +190 +143 + 97 +218 - 15 n.a. n.a. n.a. + 2 +121 -307 n.a. +428 n.a. 42,293 +208 +672 •ft. 342 +2.011 +2.501 1963 +139 +124 - 38 +132 + 20 + 10 1967 -472 -145 -167 -184 + 17 41,067 +100 +598 +226 +143 +137 +211 + 20 + 63 +308 + 57 + 53 +194 +105 + 51 + 22 + 49 + 18 -268 + 88 + 66 -468 -245 +114 - 82 - 32 +422 + 38 +296 + 27 -371 - 69 - 96 - 19 - 77 +159 + 12 +135 - 10 + 61 + 22 +184 - 9 +129 + 41 +207 - 32 + 90 + 33 + 46 +297 -233 n.a. n.a. n. a. - 42 + 33 n.a. n.a. n.a. n.a. - 11 + 82 -306 n.a. n.a. n.a. + 65 +356 n.a. n.a. n.a. n.a. +127 +187 +314 + 20 + 22 + 42 31. Exhibit F Loans and Investments at All Commercial Banks (In billions of dollars) Date Loans and investments U. S. Gov't. 169.3 184.4 184.2 184.2 189.5 198.5 214.4 233.6 252.4 273.9 58.2 66.4 60.9 60.9 58.9 1965—Oct. 27 Nov. 24 Dec. 31 290.2 292 .3 301.8 58.5 1966--Jan. 26 Feb. 23 Mar. 30 Apr. 27 May 25 June 30 July 27 Aug. 31 Sept.28 Oct. 26 Nov. 30 Dec. 31 1967—Jan. 25 Feb. 22 Mar. 29 296.8 296.0 298.5 301.7 302.4 310.1 307.1 307.7 309.3 308.4 309.4 318.5 313.9 314.7 320.2 59.6 57.3 55.4 55.5 53.6 53.5 52.7 53.7 53.6 53.5 54.3 1957—Dec. 1958—Dec. 1959—June June Dec. 1960—Dee. 1961—Dec. 1962—-Dec. 1963—-Dec. 1964—Dec. 31 31 24 24 31 31 30 31 31 31 (old) (new) 1/ (est.) (est.) P p p (est.) p p p 61.0 66.6 66.4 63.4 63.0 58.8 59.5 If 56.1 55.8 56.4 57.6 Other securities Total loans Business Real estate 23.1 25.3 26.9 26.9 Security Farm Consumer 4.2 4.7 4.1 4.1 4.9 5.1 4.1 5.0 5.0 5.0 5.0 5.7 15.8 15.9 17.5 17.5 7.3 7.9 8.4 7.1 7.4 7.5 21.4 23.7 27.2 31.0 116.7 123.9 137.9 153.9 40.5 40.4 42.5 37.8 40.2 43.1 45.2 49.1 53.7 172.1 60.2 28.7 30.3 34.3 39.2 43.7 44.1 43.8 44.9 187 .7 189.8 197.4 67.1 68.3 71.4 48.5 49.0 49.3 6.9 7.2 8.5 8.1 8.2 8.2 44.4 45.1 45.4 46.5 47.1 48.8 3/ 48.6 48.4 48.8 48.6 47.8 48.4 49.0 50.3 51.6 192.7 193.6 197.6 199.8 201.7 207.92/3/ 205.8 205.5 206.9 206.3 207.3 214.0 209.1 69.7 70.7 49.7 50.0 50.3 50.9 51.2 51.9 52 .4 52.9 53.3 53.7 54.0 54.2 54.3 54.3 54.4 7.6 6.9 7.0 7.7 7.5 8.4 8.5 7.2 7.7 6.9 8.6 8.6 8.6 6.4 8.4 7.9 7.2 7.9 8.7 8.7 17.9 20.6 20.6 20.6 20.5 20.9 23.9 29.3 35.1 38.8 93.2 97.5 102.8 102.8 110.0 208.0 211.0 72.6 72.8 74.0 77.2 77.1 76.8 78.1 78.3 79.0 81.6 79.6 80.0 81.9 28.1 6.2 8.6 6.6 18.8 20.6 6.2 8.6 8.7 8.8 8.5 8.6 8.8 8.9 8.9 2/ Nonbank financial institutions All other 7.2 8.2 8.8 5.9 7.1 7.1 7.3 8.5 10.2 7.6 8.1 8.7 9.8 10.7 10.9 11.3 13.9 35.2 35.4 35.8 11.2 11.3 13.3 14.2 14.1 14.9 35.8 35.9 36.4 36.8 37.3 37 . 8 38.1 38.5 38.5 38.5 38.7 38.9 38.7 38.6 38.7 11.6 14.0 13.9 14.2 14.4 15.1 ,# 14.0 I/I// 13.7 13.2 13.1 12.9 11.7 12.5 12 ,6 11.9 13.9 12.8 12.0 12.5 11.8 11.8 13.5 11.5 11.1 11.2 12.6 13.0 12.5 12.2 12.2 l/~ Structured 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. 2/ 3/ Beginning June 9, $1.1 billion of balances accumulated for the payment of personal loans were deducted from time deposits and "all other" loans. Beginning June 30, about $1 billion of participation certificates previously included in agricultural and "all other" loans were reclassified as and "all other loans" have been revised to exclude loans to nonbank financial institutions. Individual loan category data are available for publication only on a June and December call data basis. Exhibit G Ratios to Total Deposits 1/ U. S. Government securities maturing within one year L 0 A : N S Date All commercial Total banks Member banks Reserve city banks New York City of Other Citv Ch%c^go 36.2 39.4 46.3 41.1 50.6 38.9 42.2 50.6 39.1 41.9 38.3 46.8 46.3 48.5 56.7 52.7 52.7 61.7 53.3 61.9 55.2 51.3 49.4 57.7 58.2 58.2 67.3 60.8 59.0 65.9 58.0 57.7 65.0 60.1 61.4 67.9 63.3 67.4 62.1 65.0 64.4 69.3 31 31 31 31 31 31 31 31 31 31 31 28 25 31 37.2 39.3 40.5 40.3 45.8 48.8 49.7 48.4 54.0 55.1 54.5 56.5 58.6 60.5 37.6 39.9 41.1 40.7 46.7 50.1 51.0 49.4 55.6 56.5 55.7 57.7 59.9 61.9 1965--June 30 July 28 Aug. 25 Sept.29 Oct. 27 Nov. 24 Dec. 31 63.6 63.7 64.1 63.9 63.8 64.2 63.7 64.9 65.0 65.5 65.3 65.2 65.8 65.4 74.3 72.2 74.8 73.4 73.8 77.6 75.9 67.0 67.1 67.7 69.3 69.6 68.2 70.2 63.8 64.6 65.2 64.9 66.0 66.0 66.5 66.5 66 .8 66.6 66. 6 66.4 65.9 65.6 65.4 65.5 66.5 67.0 66.6 67.6 67.7 68.3 68,3 68.6 68.4 68.5 68.3 67.7 67.3 67.0 75.9 77.5 77.7 75.7 79.3 80.9 82.6 81.9 81.8 82.9 82.7 84.0 81.8 81.8 81.2 71.3 73.4 73.9 68.4 70.4 73.4 73.3 74.0 75.3 74.2 77.7 75.8 75.8 74.8 73.4 1951—Dec. 1952--Dec. 1953--Dec. 1954--Dec. 1955--Dec. 1956--Dec. 1957--Dec. 1958--Dec. 1959--Dec. 1960--Dec. 1961--Dec. 1962--Dec. 1963—Dec. 1964--Dec. 1966--Jan. 26 Feb. 23 Mar. 30 - Apr. 27 - May 25 - June 30.3/ - July 27 - Aug. 31 p- Sept.28 p- Oct. 26 p- Nov. 30 p- Dec. 28 967-p- Jan. 25 p- Feb. 22 p- Mar. 2 9 1/ Country All commercial banks 32.1 33.9 36.1 37.1 40.7 42.6 44.1 44.4 48.2 50.3 50.2 51.7 53.8 56.0 9.8 11.7 16.9 10.0 5,1 7.5 8.4 8.3 7.4 8.7 11.2 9.5 2/ 7.5 8.0 67.8 68.9 69.0 69.1 69.1 69.3 68.7 58.3 58.6 58.7 58.4 58.2 58.3 57-9 6.0 5.7 6.1 6.4 7.1 7.3 7.3 69.2 70.6 70.8 70.7 70.9 70.3 71.0 71.3 71.9 71.4 71.2 70.5 70.3 69.5 68.7 57.9 58.3 59.0 59.2 60.1 59.6 60.1 60.2 60.2 60.1 60.1 59.9 59.7 59.6 59.8 7.5 6.3 5.7 5.6 5.4 5.3 5,0 5.6 5.6 5.8 5.6 6.2 6.1 5.5 n.a. 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.) 2/ Estimated for December 31. _3/ Beginning in June, loans at all commercial banks exclude about $1 billion of ~~ participation certificates now reported in other securities. If the $1 billion were included in loans in July, the ratio for all commercial banks would be 66.3NOTE: Comparability of figures affected by changes in Federal Reserve membership, mergers, and by changes in the reserve classification of cities or individual banks. - Preliminary. Digitized forpFRASER L. 4. 3.-EXHIBIT H, Pfft 1 DEPOSITS AND CURRENCY AND TURNOVER OF DEMAND DEPOSITS Seasonally adjusted; deposits, monthly averages of daily figures; tTFnover m onth lyj V Annual rate Bi II i o n s of dollars*' |160 M O N E Y SUPPLY 140 [l 2 0 TIME A N D SAVINGS DEPOSITS 100 y 224 SMSA'S 343 Centers TURNOVER 80 Outside N Y C . 60 -J - - , - ^ ^ — •>- - —i U,S. G O V T . DEPOSITS ' 10 10 Not adjusted for s e a s o n a l ; 1 19 6 0 I i 1 1962 196 3 i i i i i i i i i i i i i ii 1964 1965 i i i i i i i i i 1966 /All c o m m e r c i a l b a n k s . 0 Chart not revised and not updated for Money Supply, Time and Savings Deposits, U.S. Government Deposits, and Turnover. Exhibit H - Part II S e a s o n a l l y Mo n e y S u p Period Total Demand deposits A d i u s t e d D a t a p i y Time and ' Turnover savings outside Currency depositSjy N.Y. City* (per cent) U.S. Gov' t deposits 1963--Dee ember 1964--De c ember 1965--December 1966--December 153.1 159.7 167.2 170.3 120.6 125.4 130.9 132.1 32.5 34.2 36.3 38.3 112.2 126.6 146.9 158.0 33.9 33.4* 37 .5 39.7 5.1 5.5 4.6 3.5 1966--March 169.3 132.3 36.9 149.5 38.3 4.6 1967--January p February p 169.6 170.4 172.8 131.1 131.7 133. 9 38.5 38.7 39.0 160.5 163.2 165.3 n.a. n.a. n.a. 4.2 5.1 4.9 171.0 171. 9 173.0 172.7 173.7 132.3 133.0 134.0 133.7 134.6 38. 7 38.9 39.0 39.0 39.1 163.8 164.5 165.1 165.5 166.0 n.a. n.a. n.a. n.a. n.a. 5.3 4.3 3.1 5.3 6.9 Wert e 5 l K i : P Mar. 1 8 15 22. 29 1/ Beginning on June 9, 1966, time deposit data exclude $1.1 billion of balances accumulated for the payment of personal loans. P " Preliminary * - Beginning January 1964, data are for 224 metropolitan centers outside New York City. Figure for December 1964 on old basis is 35.3. NOTE: Dollar amounts in billions. 1 . 4 . 3 - EXHIBIT I, P a r t 1 TIME A N D S A V I N G S D E P O S I T S AT LARGE C O M M E R C I A L B A N K S Wednesday BiWions of d o l l a r s figures TOTAL TIME AND SAVINGS DEPOSITS SAVINGS DEPOSITS TIME DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS OTHER TIME DEPOSITS 1964 1965 1966 * ' C H A N G E IN SERIES. Exhibit I - Part II Tim e Period 1961—Dec. 1962—Dec. 1963—Dec. 1964--Dec. 1965—Dec. 27 26 31 30 29 dollars) 41,472 50,011 59,227 66,881 78,260 30,082 34,712 38,083 40,698 45,362 5,969 9,080 13,310 16,407 21,258 5,421 6,219 7,834 9,776 11,640 81.001 82,868 90,185 45,111 43,104 48,413 24,160 27,515 28,687 11,73& 12^249 13,085 Dec. 28 (old) 28 (new) 89,495 89,639 47,099 47,213 28,979 29,002 13,417 13,424 25 22 92;545 93,986 1 8 94,240 95,036 46,520 46,574 46,603 46,721 32,119 33,013 33,013 33,503 13,906 14,399 14,618 16,812 15 22 29 95,206 95,700 96,133 46,806 46,907 47.098 33,528 33,780 34,054 14,872 15,013 14,981 1967——Jan. Feb. Mar. 3/ o f Other time deposits 1/ 29 (old) 29 (new) 3/ Dec. 2/ m i 1! 1 1 o n s Individuals, partnerships, and corporations 2/ June 3/ June 1966--Mareh 30 1/ S a v i n g s D e p o s i t s Savings Total ( I n and Includes States and political subdivision, U.S. Government, foreign governments and official institutions, and interbank. Beginning June 15, data exclude the $400 million of balances accumulated for the payment of personal loans. Series revised. Exhibit J Member Rank Reserves (Based on averages of daily figures; in millions of dollars) Excess Reserves Free reserves (excess reserves minus borrowings) Date All member Reserve City Banks City of New York Chicago City Country Other Monthly Averages: - 80 1958--December 1959--December 1960--December 1961--December 1962--December 1963--December 1964--December 1965--December - 41 -424 669 419 268 209 168 2 19 - 14 - 70 1966--Feb. Mar. Apr. May June -107 -246 -268 -352 -352 - 75 - 37 - 29 - 40 -143 -358 -390 -367 -431 -222 -165 - July Aug. Sept. Oct. Nov. Dec. 1967--Jan. Feb. p Mar. p NOTE! - r - 16 r - 4 238 -109 10 - 50 - 62 6 - 26 - 93 -124 - 71 - 95 - 46 - 67 - 68 All member All member All member 1/ - 52 -122 -103 -161 268 237 583 471 394 334 315 238 516 482 756 568 572 536 411 452 557 906 87 149 304 327 243 454 18,392 18,434 18,765 19,545 20,224 20,955 21,843 23,010 -148 -218 -238 -225 -223 143 71 32 -84 27 371 305 358 370 322 478 551 627 722 674 23,217 23,274 23,530 23,536 23,539 54 24 64 95 24 50 -312 -279 -217 -246 -245 r -159 9 6 34 118 r 140 408 338 398 302 389 392 r -123 r - 64 - 15 r - 80 r - 84 r 233 r 211 314 r 373 r 358 437 - 32 -104 4 - 22 - 11 - 21 - 31 8 - 26 - 62 - 33 - 3 - 12 - -197 -449 80 20 7 -61 I i 1 |1 26,763 23,363 23,492 23,297 23,262 23,283 766 728 766 733 • 611 557 389 362 199 1 r 23,614 r 23,886 24,338 B e g i n ^ n g ^ u l y ~ 2 6 j 1962j f i ^ r es~ f orHbc^h ~ N e w ^ o r k " t h ^ c T F y " o l T l ^ h i c a g o - i n c l u d e d . formerly classified as central reserve city and three banks whose classification as reserve city is continued. If [ Total reserves held seasonally adjusted Borrowings r , » " h t v « been adjusted for redefinition of ti.e deposits effective J„,e 9, 1966. Exhibit K Liquid Assets Held by the Public - Seasonally Adjusted Series 1/ (Amounts in billions of dollars; ratios expressed as percentages) Time deposits End of year or month Total Demand deposits and currency 2/ 2 1 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 320.2 332.5 343.2 356.0 373.1 393.9 399.2 424.6 459.0 495.4 530.5 572.9 130.2 133.3 134.6 133.5 138.8 139.7 138.4 142.6 144.8 149.6 156.7 164.0 1966 Jan. Feb. Mar. Apr. May June 578.4 577.5 585.5 587.0 585.7 589.2* 164.8 162.7 167.0 166.4 163.7 166.5 July Aug. Sept. Oct. Nov. Dec. p p p 1967 Jan. p Commercial banks 3/ 588.5 592.8 594.3 596.0 600.2 601.0 r 604.6 r 604.1 613.9 Mutual savings banks U. S. Gov't, Savings and loan savings bonds 5/ shares 4/ Postal Savings Sys tem U. S. Gov't, securities maturing within one year 6/ 8 3 4 5 6 7 48.2 49.7 52.0 57.5 65.4 67.4 73.1 82.5 98.1 112.9 127.1 147.1 26.3 28.1 30.0 31.6 33.9 34.9 36.2 38.3 41.4 44.5 49.0 52.6 2.1 1.9 1.6 1.3 1.1 0.9 0.8 0.6 0.5 0.5 0.4 0.3 27.2 32.0 37.0 41.7 47.7 54.3 61.8 70.5 79.8 90.9 101.4 109.7 55.6 55.9 54.8 51.6 50.5 47.9 47.0 47.4 47.6 49.0 49.9 50.5 30.6 31.6 33.2 38.8 35.6 48.8 41.9 42.6 46.8 48.1 46.1 48.6 149.2 149.4 151.1 152.5 153.6 153.9* 52.8 53.0 53.1 53.1 53.3 53.4 0.3 0.3 0.3 0.3 0.3 0.2 109.8 110.6 111.4 111.0 111.2 111.4 50.5 50.3 50.3 50.4 50.4 50.4 51.1 51.0 52.1 53.3 53.3 53.4 110.7 111.3 112.2 112.1 112.8 113.3 50.6 50.6 50.5 50.6 50.6 50.9 52.8 53.3 54.5 56.0 55.8 53.9 164.3 167.0 166.1 166.0 167.8 168.2 156.1 156.6 156.7 156.6 158.2 159.4 53.7 53.9 54.2 54.6 54.8 55.1 0.2 0.2 0.2 0.2 0.1 0.1 166. 7 165.6 170.6 163.4 165.1 167.3 55.5 55.9 56.1 0.1 0.1 0.1 r 113. 6 r 114.7 116.2 51.0 50.9 51.0 5U) r r Ratios: Commercial Demand deLiquid posits and bank deposits assets currency to and currency to to gross gross nation- liquid assets national product 7/ al product 7/ (2 + 3 t 1) 10 11 9 55.7 35.0 85.9 55.0 32.6 81.3 54.4 31.2 79.6 53.6 30.3 80.3 54.8 29.9 80.2 52.6 28.7 80.5 53.0 27.6 79.2 53.0 26.4 78.5 52.9 25.4 80.4 53.0 24.6 81.0 53.5 24.1 81.6 54.3 22.9 80.5 80.2 22.8 80.1* 22.7 79.3 22.3 78.7 22.0 54.3 54.1 54.3 54.3 54.2 54.4*x 54.5 54. 6 54. 3 54.1 54. 3 54.5 54.6 54. 7 55.0 54. 2 51.7 52.6 22.0 79.3 Mar. U OLA Mar. P p Beginning w T t h T a ' a ^ June 1966, total liquid assets and time deposits at commercial banks exclude $1.1 billion of balances accumulated for the payment of personal loans. p - preliminary r - revised. i e • t e • e # • # # e # # # ' # • Exhibit K (Continued) ——— • , - — - w-*.- — -• <•» « # # # »- 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. 2. 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. 3. Total time deposits at commercial banks except interbank, U.S. Treasurer's open accountr and Data are as of the last Wednesday of month postal savings redeposited in commercial banks. 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. 4. 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. 5. 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. * 6. 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 12months 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. 7. 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). #
@FedFRASER