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L.4.3 E D t R A L R E S E R V E BANK of K A N S A S C I T Y AUG 1 5 1957 BANKING AMD MONETARY DEVELOPMENTS IN JULY 1957 R E S E A R C H LIBRARY Summary. T o t a l loans and investments a t a l l commercial banks declined somewhat in J u l y as reductions i n loans, p r i n c i p a l l y those t o b u s i n e s s e s , were o f f s e t only in p a r t by bank purchases of U, S, Government s e c u r i t i e s . Demand deposit and currency holdings of businesses and i n d i v i d u a l s increased seasonally and time d e p o s i t s rose f u r t h e r , Net borrowed reserves of member banks d e c l i n e d . I n e a r l y August, the prime commercial loan r a t e was i n creased and r a t e s on commercial paper and bankers' a c c e p t ances rose f u r t h e r . E f f e c t i v e August 9> f o u r F e d e r a l Reserve Banks r a i s e d t h e i r discount r a t e s t o 3 - 1 / 2 per c e n t . Bank c r e d i t . Preliminary e s t i m a t e s i n d i c a t e t h a t t o t a l loans and investments a t a l l commercial banks declined $400 m i l l i o n in J u l y , a s shown in Table 1, A $900 m i l l i o n r e d u c t i o n in t o t a l loans and a small decline in holdings of municipal and corporate s e c u r i t i e s were o f f s e t i n p a r t by n e t purchases of-$600 m i l l i o n of U. S, Government s e c u r i t i e s , Holdings of U, S, Government s e c u r i t i e s increased sharply on J u l y 3 when commercial banks acquired p r a c t i c a l l y a l l of t h e new $3 b i l l i o n issue of t a x b i l l s . Subsequently, however, s a l e s were heavy. Last year in J u l y , which included no Treasury f i n a n c i n g , t o t a l c r e d i t declined $1 b i l l i o n , r e f l e c t i n g a smaller loan reduction accompanied by s a l e s of U. S, Government and other s e c u r i t i e s . In most other recent y e a r s , t o t a l bank c r e d i t has increased during J u l y , Business loans a t a l l commercial banks declined $900 m i l l i o n in J u l y o f f s e t t i n g over h a l f t h e record $1,6 b i l l i o n r i s e in June a s s o c i a t e d with borrowing f o r midmonth t a x payments. Banks in New York C i t y , which had a c counted f o r s l i g h t l y over h a l f of t h e June increase a t weekly r e p o r t i n g banks, accounted f o r t h r e e - f i f t h s of the decline a t those banks in J u l y . In J u l y l a s t year business loans had declined much l e s s , $300 m i l l i o n , about a f o u r t h of l a s t y e a r ' s smaller June r i s e . Not f o r p u b l i c a t i o n Table 1 Estimated Changes i n Loans and Investments a t A l l Commercial Banks (in b i l l i o n s of d o l l a r s ) ' 1957 Item Total l o a n s (excluding interbank) ' "1956 "1957 Year endings "1956 June 27- J u l y 1 - J a n . 1 - J a n , 1 * J u l y 31 J u l y 25 J u l y 31 J u l y 25 1957 1956 J u l y 31 J u l y 25 +10.U - 0,9 - OeU + lo5 + 3,8 + 5,3 - 0,9 X i - 0,3 + 0,1 - 0.1 •* 0 , 1 + 0,1 • —0,1 + 0,9 + 0,2 — 0,6 - 0.1 + 0,8 + 0.1 + + + + 206 1,1 0,7 0.3 1,2 0.1 + + * • + + U* S, Government s e c u r i t i e s + 0.6 — 0,1+ - - 5,U - 0,3 - Other s e c u r i t i e s •» Ool - 0.3 + 0,U *• o . U + o,U — o.U - o,U - 1.0 - 0,9 - + 5,3 + 2,5 Business Real e s t a t e Security Agricultural Consumer All other Total loans and investments (less interbank) + Ool *» 0 , 2 + 0,1 2*7 2,0 . 3o8 0.8 0,6 0,1 1,1 o,U 2/+ 6 , 7 2/+ 1«9 ~ - 0,2 X . 1 + 0,3 7,5 F i r s t seven months Item 195U 1953 1952 1951 1950 + 5.0 - 0.8 + 1,2 + 1,7 + 1.9 + 2,8 + 2.2 + 1.6 1/ -"1.0 + i,U + 0.7 + + + 1,U 0,7 0,3 0,1 0.1 0,2 + + + o,U 0.6 0,2 0,1 1,3 0,2 «• + + + + 1,5 + + + + + U. S. Government s e c u r i t i e s * 5c 3 + 0.9 - 0,1 + l.U - 3*3 - 2,0 Other s e c u r i t i e s + 0,U + 1.0 + 0,2 + 0,8 + o.U + 1,2 + 0,1 + 1,1 + 1,3 + 3,9 - 1,0 + 1,9 Total loans (excluding interbank) Business Real e s t a t e Security Agricultural Consumer All o t h e r T o t a l loans and investments (less interbank) 1/ " 1955 0,8 o,5 o,5 o.U + 0,7 — 0,U + 0,3 + 0.9 + 0,2 Hi ; 0,2 1,1 o.5 0,3 1,0 0,3 Level of b u s i n e s s l o a n s i n c r e a s e d b y , and r e a l e s t a t e l o a n s decreased b y #300 m i l l i o n a t end of October 1955 t o c o r r e c t c l a s s i f i c a t i o n e r r o r s . No back f i g u r e s r e v i s e d ; most of t h e m i s c l a s s i f i c a t i o n probably occurred during 1955• Notej Data f o r J u l y 1957 are e s t i m a t e s and s u b j e c t t o e r r o r . P r e l i m i n a r y d a t a f o r J u l y w i l l be shown i n t h e Board 1 s s t a t e m e n t , "Assets and L i a b i l i t i e s of A l l Banks i n t h e United S t a t e s " a v a i l a b l e a t t h e end of August* Not f o r p u b l i c a t i o n Most b u s i n e s s groups reduced t h e i r o u t s t a n d i n g loans i n J u l y , as shown i n Table 2 . Sales f i n a n c e compani e s accounted f o r over o n e - t h i r d of t h e t o t a l d e c l i n e a t c i t y banks a s they reduced t h e i r borrowings by almost a s much a s t h e y had increased them in June, These companies, along w i t h p u b l i c u t i l i t i e s and metals m a n u f a c t u r e r s , had been t h e l a r g e s t borrowers i n June, Metals manufacturers a l s o reduced t h e i r loans considerably in J u l y - - a b o u t t h r e e q u a r t e r s of t h e June i n c r e a s e . Loans t o p u b l i c u t i l i t i e s , however, which had increased somewhat more t h a n any o t h e r b u s i n e s s group in June, dropped only moderately i n J u l y , Loans t o food p r o c e s s o r s continued t o d e c l i n e while those • t o commodity d e a l e r s began t o increase a s i s u s u a l i n J u l y . So f a r t h i s y e a r , b u s i n e s s loans a t a l l commercial banks have increased $$00 m i l l i o n compared w i t h $2,6 b i l l i o n l a s t y e a r . Business loans showed l i t t l e o v e r - a l l change d u r i n g t h e f i r s t f i v e months of 1957 whereas l a s t y e a r t h e y had increased, c o n s i d e r a b l y ; they rose more i n t h e June t a x period t h a n l a s t y e a r , b u t subsequently have d e c l i n e d f a s t e r . Loans t o food p r o c e s s o r s and commodity d e a l e r s have declined more t h i s year t h a n l a s t f o l l o w i n g an unusually sharp r i s e i n l a t e 1956. Also, n e t borrowing by t r a d e concerns has d e c l i n e d , whereas l a s t y e a r i t i n c r e a s e d , With t h e exception of s a l e s f i n a n c e companies and p u b l i c u t i l i t i e s , growth i n loans o u t s t a n d i n g t o o t h e r b u s i n e s s groups has been considerably l e s s t h a n l a s t y e a r , and, in some c a s e s , t h e r e have been d e c l i n e s . The l a r g e r growth in borrowing by p u b l i c u t i l i t i e s t h i s y e a r r e f l e c t e d p r i n c i p a l l y t h e unusually sharp increase i n J u n e . Loans t o s a l e s f i n a n c e companies rose somewhat i n t h e J a n u a r y - J u l y period., whereas l a s t y e a r they had dropped s u b s t a n t i a l l y . Excluding loans t o s a l e s f i n a n c e companies, b u s i n e s s loans a t c i t y banks have increased l e s s than a f i f t h a s much as last year. Heal e s t a t e loans a t a l l commercial banks may have increased somewhat i n J u l y ; so f a r t h i s y e a r , growth i n t h e s e loans has been small compared with over $1 b i l l i o n l a s t y e a r . Consumer loans probably showed l i t t l e f u r t h e r change over t h e p a s t month; expansion i n t h e s e loans has been about t w o - t h i r d s t h e r a t e of l a s t y e a r . A g r i c u l t u r a l loans rose somewhat i n J u l y while s e c u r i t y loans dropped t o t h e i r lowest l e v e l of t h e y e a r . Hot f o r p u b l i c a t i o n - it - Lslt.3 Table 2 Changes i n Commercial and I n d u s t r i a l Loans (In m i l l i o n s of d o l l a r s ) Business of Borrower 1/ Change from end of December t o 1956 "1957 June 27 June 28 1956 July 31 J u l y 25 1957 - 1*02 - 21*1* + 167 - 479 1952 1953 1955 195U - 605 - 395 + 176 - 021* - 500 297 6? 064 + 552 - 189 - - 71*0 - 891 - 608 - 575 + 192 - 138 -1,156 -1,661* Food processors Commodity d e a l e r s Trade concerns Total T-B5 - 100 • 51*1 + 11*2 - 1*97 a T - 1 5 -l',o82 Sales finance - 271 - 20l* + All other - t o t a l Metals and products T e x t i l e s , apparel and l e a t h e r Petroleum, c o a l , etc* Other manufacturing and mining Public u t i l i t i e s Construction All other types of business - 303 r-ssn + 27 +1,736 +2,989 +1,655 zrm +'' t i l +1,21*1 + 131 - + 19 - 27 + 29 + 61 + 6 - 82 + 8 - 28 — 16 + 1*31 + 337 + h + 39 + 386 + 169 + + 11* + 106 + 82 38 + 67 - 167 87 + 13 + 21* - + 2k - 57 + 172 + 208 + 77 + 1 + 25 - 659 - 128 - 139 - 90 + - 71*5 +1,985 +1,382 -1,559 29 2 / - 279 3 / - 297 283 + 1*73 271* - 735 101 - 787 - 229 + 1*62 +2,01b 2/+l,103 y - 1 , 8 5 6 - 71*7 - 836 Classified Unclassified Total change - 85 + 42 3 l 95 - 525 + 167 + 267 + + 26U + 1*88 + 21*8 + 331 - + 75 + 220 + 1*1*5 + 182 53 - 21*9 506 + 736 +1,119 710 + 39$ +1,002 91 + 185 52 31 + 205 75 - 1/ P r i o r t o week ending January 11, 1956, included changes i n a g r i c u l t u r a l l o a n s . 2/ ~ CCC c e r t i f i c a t e s of i n t e r e s t , which are included i n d a t a , may have declined $620 m i l l i o n , 3/ CCC c e r t i f i c a t e s of i n t e r e s t , which are included i n d a t a , may have increased $25 m i l l i o n • Note* C l a s s i f i e d d a t a are f o r a sample of about 210 banks r e p o r t i n g changes i n t h e i r l a r g e r l o a n s ; these banks hold over 90 per cent of t o t a l commercial and i n d u s t r i a l loans of a l l weekly r e p o r t i n g banks and n e a r l y 70 per cent of those of a l l commercial banks. Data are p r e l i m i n a r y f o r week of J u l y 31. Not f o r p u b l i c a t i o n So f a r t h i s y e a r , t o t a l loans and investments a t a l l commercial banks have declined $900 m i l l i o n , about h a l f a s much a s l a s t y e a r . While growth in t o t a l loans has been l e s s t h a n h a l f a s l a r g e , holdings of U, S . Government s e c u r i t i e s have d e c l i n e d much l e s s , and holdings of o t h e r s e c u r i t i e s have increased whereas l a s t y e a r t h e y d e c l i n e d . I n most o t h e r r e c e n t y e a r s , t o t a l c r e d i t has increased during the f i r s t seven months of t h e y e a r , Deposits and currency. P r e l i m i n a r y e s t i m a t e s i n d i c a t e t h a t demand d e p o s i t and currency h o l d i n g s of b u s i n e s s e s and i n d i v i d u a l s increased about s e a s o n a l l y i n J u l y , a s shown i n Table 3 . Demand d e p o s i t s a d j u s t e d d e c l i n e d somewhat b u t currency o u t s i d e banks r o s e . At t h e month-end, t h e s e a s o n a l l y a d j u s t e d money supply was l e s s t h a n one p e r c e n t above t h e year-ago l e v e l , a s had a l s o been t h e case i n May and J u n e , So f a r t h i s y e a r , s e a s o n a l l y a d j u s t e d demand d e p o s i t s and currency have increased $700 m i l l i o n , compared with $900 m i l l i o n in t h e comparable p e r i o d l a s t year, The r a t e of turnover of demand d e p o s i t s , excluding interbank and U. S. Government d e p o s i t s , a t banks o u t s i d e New York and o t h e r f i n a n c i a l c e n t e r s rose f u r t h e r d u r i n g t h e second q u a r t e r of 1957, averaging 2 3 . 3 . This was about 5 p e r cent above t h e f o u r t h q u a r t e r 1956 l e v e l compared with a 7 p e r cent r i s e over t h e comparable p e r i o d a year e a r l i e r . Time d e p o s i t s a t commercial and mutual savings banks rose f u r t h e r i n J u l y . So f a r t h i s y e a r t h e s e d e p o s i t s a t commercial banks have increased $3,8 b i l l i o n compared w i t h $ 1 , 3 b i l l i o n l a s t y e a r . Growth i n 1957 has been about t h e same a s t h e sharp wartime expansion i n 1945 b u t subs t a n t i a l l y l a r g e r t h a n i n any o t h e r y e a r . At mutual savings banks, d e p o s i t growth has been only s l i g h t l y l e s s t h i s y e a r than l a s t . U. S . Government d e p o s i t s d e c l i n e d $1 b i l l i o n i n J u l y and t o t a l d e p o s i t s and currency dropped $300 m i l l i o n . As noted above, commercial bank c r e d i t d e c l i n e d $400 m i l l i o n , and while F e d e r a l Reserve holdings of U. S . Government s e c u r i t i e s and loans a t mutual savings banks increased and added t o d e p o s i t s , o t h e r miscellaneous f a c t o r s reduced deposits. Not f o r p u b l i c a t i o n L.U.3 Table 3 Estimated Changes In Deposits and Currency t i n b i l l i o n s of d o l l a r s ) Item Seasonally a d j u s t e d d a t a l / " Demand deposits a d j u s t e d Currency outside banks Total Unadjusted d a t a l / Demand deposits""adjusted Currency outside banks Total Time d e p o s i t s U. S. Government d e p o s i t s Total W 7 — —1956 June 27- J u l y 1 J u l y 25 J u l y 31 - 0.2 + 0.2 17" 0.1 0.1 "TO - 0.9 Year ending; 1956 I M 1956 J a n . 1 I Jan. 1 J u l y 31 1 July 25 J u l y 25 J u l y 31 I Wl + o»U + 0.8 + 0.1 + 0.9 + 1 75 + 1.3 + 0.3 T13 - 5.8 - 0«U • U.7 - 0,9 o*U o«5 + 1.3 + 0.3 + 6.2 2/ + 3.6 - 2.3 TT72 + 0.3 T + U.7 - 0.3 TT3 + 2.3 - 0.2 - 3*5) O.k 0.6 + 0.9 (signs i n d i c a t e e f f e c t on d e p o s i t s and currency) Factors a f f e c t i n g d e p o s i t s and currency Bank loans and investments other than U« S. Govt* +12.L + 8.1 + 2.8 + ii.6 - 0.8 - 0.9 securities 3/ + 1.9 TJZ r r o Commercial" + 2.5 + 2.3 + 1.3 + 1.5 + 0.2 + 0.1 Mutual savings Bank holdings of U. S» - 8.9 - 1.0 - 7.0 b.b - 0.8 + 1.1 Government s e c u r i t i e s : - 1.6 - 1.U T T r r o TUHI Federal Reserve - 7.5 -"*0.3 5 . U 2.7 + 0.6 - o.U Commercial - 0.6 — o « 6 0 . 3 0.2 2/ Mutual saving and other 2/ Gold stock and f o r e i g n + 0.3 + 0.6 + 0.7 + 0.3 + 0.1 • o.i deposits a t F« R. Banks — 0.9 - 0.8 - 0.7 - l.U - 0.7 •• 0.6 Other f a c t o r s l a d j u s t e d data da- are Seasonally a d j u s t e d d a t a are f o r l a s t Wednesday throughout; unadjusted f o r l a s t Wednesday except i n case of June and December c a l l d a t e s , when availsbJe. Unadjusted d a t a f o r J u l y , 1957 and J u l y , 1956 are not e n t i r e l y comparable as the former are comDUted from the l a s t Wednesday of June and t h e l a t t e r from the 30th of June. Demand d e p o s i t s a d j u s t e d tend t o d e c l i n e , currency outside banks t o i n c r e a s e , and time d e p o s i t s t o i n c r e a s e , between t h e l a s t Wednesday of June and the 30th of June* Less than $50 m i l l i o n . . Total includes f o r e i g n loans on gold, holdings of bankers acceptances a t the Hi Federal Reserve, and loans t o f o r e i g n banks; changes i n these items are genera l l y r e l a t i v e l y small. In a d d i t i o n even i f there were no changes i n these items, changes a t commercial and mutual savings banks would not add t o t o t a l change which i s "net" because commercial banks exclude a l l interbank l o a n s , domestic and f o r e i g n . „ . . Data f o r J u l y 1957 are estimates and s u b j e c t t o e r r o r . Preliminary data f o r Notes J u l y w i l l be shown i n t h e Board's statement, "Assets and L i a b i l i t i e s of All Banks i n t h e United S t a t e s " a v a i l a b l e a t t h e end of August. On June 26, 1957, p r e l i m i n a r y s e a s o n a l l y a d j u s t e d d a t a were: Demand d e p o s i t s a d j u s t e d , ^107.2 b i l l i o n ; currency outside banks, $27.9 b i l l i o n ; and t h e t o t a l $135.1 b i l l i o n . http://fraser.stlouisfed.org/ Not f o r publication Federal Reserve Bank of St. Louis Bank r e s e r v e s . Wet borrowed r e s e r v e s of a l l member banks averaged $385 m i l l i o n in J u l y , somewhat below t h e $510 m i l l i o n average in June, as shown in Table 4 . Borrowings dropped t o $920 m i l l i o n and excess r e s e r v e s rose t o $535 m i l l i o n . Most of the easing occurred a t country banks, and t o a l e s s e r e x t e n t , a t reserve c i t y banks. Net borrowed reserves were about unchanged a t c e n t r a l reserve c i t y banks in New York and Chicago, On a few days l a t e in the month, t h e e f f e c t i v e r a t e on F e d e r a l funds dropped below 3 per cent f o r the f i r s t time since March. E a r l y in J u l y , net borrowed r e s e r v e s were r e l a t i v e l y h i g h , averaging $680 m i l l i o n , w e l l above t h e June l e v e l . Currency outflows, increases in required r e s e r v e s a s s o c i a t e d with bank purchases of new Treasury b i l l s , and reductions in Reserve Bank f l o a t drained more funds than were supplied through System purchases of U. S, Government s e c u r i t i e s . Subsequently, net borrowed r e s e r v e s declined a s r e s e r v e s supplied through reductions in currency i n c i r c u l a t i o n and in required reserves were absorbed only in p a r t by o t h e r f a c t o r s , During the l a s t two weeks of t h e month, n e t borrowed reserves averaged only $150 m i l l i o n . During t h e week of August 7, however, reductions i n System holdings of U. S . Government s e c u r i t i e s , currency outflows, and changes i n o t h e r f a c t o r s absorbed funds and net borrowed r e s e r v e s rose t o an average l e v e l of $580 m i l l i o n . Over t h e month of J u l y average System holdings of U. S, Government s e c u r i t i e s , both o u t r i g h t and under r e p u r chase c o n t r a c t s , were $360 m i l l i o n above t h e June average, as shown in Table 5 . Purchases were heavy e a r l y in the month when reserve p r e s s u r e s were i n c r e a s i n g . Outright purchases continued during the mid-month but repurchase cont r a c t s were reduced. In t h e l a t t e r p a r t of J u l y , o u t r i g h t b i l l holdings declined but a s u b s t a n t i a l volume of repurchase c o n t r a c t s were acquired p r i o r t o t h e Treasury r e f u n d i n g on August 1. Over t h e month of J u l y , currency outflows and increases in required r e s e r v e s absorbed only p a r t of the funds provided through System purchases of U. S. Government s e c u r i t i e s and through small changes in o t h e r f a c t o r s adding t o r e s e r v e s . Average net borrowed r e s e r v e s declined $125 m i l l i o n in J u l y . I n t e r e s t r a t e s . On August 6 and 7, leading banks i n New York and other c i t i e s announced an increase in the prime r a t e — t h e minimum charged on short-term loans t o b u s i ness borrowers with t h e b e s t c r e d i t r a t i n g — t o 4-1/2 per cent from 4 per c e n t . The l a t t e r r a t e had been in e f f e c t since August 1956 when the r a t e had been increased l / k per Not f o r p u b l i c a t i o n - 8 - L.lt.3 Table h Free Reserves (Excess r e s e r v e s minus member bank borrowings} based on average of d a i l y f i g u r e s ; i n m i l l i o n s of d o l l a r s ) Reserve City Country - 26 - 338 550 338 83 103 256 262 153 Ill 1*8 72 93 Ill* 11*0 86 - 353 336 298 1*29 1*68 356 3Wi 382 296 21*6 193 203 379 310 319 321* 205 305 360 27U 380 358 393 3l*l* •• 1*1 - 123 - 101 - 300 - 101* — 185 - 181 - 1*0 - 53 - 253 - 210 - 165 - 1*8 - 27 - 172 21*9 21*2 263 367 1*88 1*55 369 299 280 269 192 210 280 25U 158 - 127 - 365 - 29 1 - 112 - 192 - - 99 - 150 - 323 - 1*18 1*57 371* 375 31*1 Period All member 1951k 1955$ December December 1*59 - 2U5 — 50 - 161 - 16 83 1956$ January February March April May June July August September October November December * - 255 266 1*08 533 5ob 195 139 339 213 195 15U 36 — 198 - 138 - 17ii - 167 - 88 - 33 - 108 - 158 - 201* - 192 - 211* - 91 - 1957$ January February March April May June July ~ - 117 126 316 505 UUi 5o8 38k Q u a r t e r l y averages 19#: First Second Third Fourth New York Chicago 75 61* 67 95 1956: First Second Third Fourth - 310 Ill 230 128 - 170 - 96 - 157 - 166 - 11*7 - 175 - 71 - 113 - 329 - 1*18 — 3l*l - 211* 336 278 338 365 1957: First Second - 108 - 1*85 - 88 - 196 - 115 - 11*1 - 221 - 373 316 221* - 1*57 - 723 - 636 - 1*9U - 13U - 161* — 580 - - 25 - 101 - 1*5 - 12 - 25 m 1 - 20 - 21*3 118 323 31U 377 112 21*0 217 169 267 279 121 29 306 1957* June 26 July 3 10 17 2l* 31 Aug, 7 Notes Data f o r second h a l f of J u l y and August a r e p r e l i m i n a r y . Not f o r p u b l i c a t i o n 1*58 571 61*7 517 365 21*6 1*91* c e n t . The r e c e n t increase r e p r e s e n t s t h e f i r s t change on record of a f u l l l / 2 percentage p o i n t . Previous changes have been i n s t e p s of l / 4 percentage p o i n t . On August 7> t h e r a t e on 4-6 month prime commercial paper rose l / 8 per cent t o 4 p e r cent and t h a t on b a n k e r s ' a c c e p t a n c e s , l / 4 p e r cent t o 3 - 5 / 8 p e r c e n t . E f f e c t i v e August 9> with t h e approval of t h e Board of Governors, t h e discount r a t e was r a i s e d t o 3-1/2 p e r cent from 3 p e r cent a t t h e F e d e r a l Reserve Banks of P h i l a d e l p h i a , Chicago, Minneapolis, and Kansas C i t y , Hot f o r p u b l i c a t i o n / - 10 - Table 5 Changes i n Member Bank Reserves, with Relevant F a c t o r s (Monthly average of d a i l y f i g u r e s } i n m i l l i o n s of d o l l a r s ) Jan. - July July" Item 1956 1957 1956 1957 Year ending July" 1957 1956 Member bank r e s e r v e balances Total Required r e s e r v e s l / Excess r e s e r v e s l / ~ + 1U7 - 97 - I4.O6 - hOh + 293 12 + 111 + 36 - 122 + 25 - 287 119 - 1*09 + 5 + 359 + 32 *• ** E f f e c t of above f a c t o r s on r e s e r v e s 20 (signs i n d i c a t e e f f e c t on r e s e r v e s I Principal factors Currency i n c i r c u l a t i o n Gold stock and f o r e i g n accounts Treasury operations Federal Reserve f l o a t Other f a c t o r s 66 - 2lh - 215 + 659 + 5iU - 365 - U67 + 20 + 25 + 5 + ko + U6 - 30 + 57 + 16 + 678 + 30 - 158 82 + 296 57 m 126 + 98 + 722 + 119 - 88 - U8 + 269 1 + 323 + 106 - 12U - 126 + 827 + + 3U0 + 230 + 271 + 27 -1,231 -1,125 - h6 - 220 + 362 T-28X + 81 + 58 —Ijhlli -1,300 - lib 28 - 1 ,022 "7115 277 1 - 229 -375 + 1U6 + U - 387 =""355 - 35 + 5 + 179 + 211 - h9 725 Federal Reserve loans and investmentss Total U. S. Govt, s e c u r i t i e s Outright Repurchase agreements Acceptances Discounts and advances* To member banks To others 1/ + 8? + 1 + 29 - 88 h - - 31 1 1 + 229 m 18 |: 101 1 Data f o r J u l y 1957 are p r e l i m i n a r y . Note* """"""" Changes are based on d a t a f o r June and July; December and J u l y ; and J u l y of each y e a r . Not f o r p u b l i c a t i o n L.U.3 - ii - >> Loans and Investments a t A l l Commercial Banks ( I n b i l l i o n s of d o l l a r s ) Loans and investments Date 19L7* Dec* 31 19U9: 1950S 31 31 1U5.5 155.7 1955* Mar. 30 June 30 Sept.28 Dec» 31 152.U 15U.8 156.a 160.3 61.2 63*3 62.0 61.6 17.0 16.8 16.9 16,7 71.2 7U.8 77.5 82.0 Jan* 25 Feb* 29 Mar* 28 Apr. 25 May 30 June 30 J u l y 25 Aug, 29 Sept*26 Oct, 3 1 Nov* 28 Dec* 31 158.3 157.1 158.5 158.7 158.L 159.3 158.3 159.8 160.7 161.L 162.7 161*5 60.9 59.2 58.6 16.5 16.6 16.6 16.6 80.9 81.2 83.3 83.9 814.7 86.2 85.8 86,3 87.2 87.6 Jan. Feb, Mar* Apr. May June July 161.6 161*0 161.3 163.7 163.6 16U.0 163.6 57.7 56.8 19571 p e 1/ ~ 30p 2?p 2TP 2ltp 29p 26p 31e 57.3 56.6 56.2 57,2 57.0 57.5 58.2 58.6 55.7 57.3 56.9 55.3 55.9 I8.li It. 5 19.0 19.8 20.6 1/20,8 U.l 20.9 21,0 U*6 21.2 21.lt U.5 27.L iui.5 58.2 15.7 16.7 9.U 10,8 11.5 13.5 31 31 31 1956: 31 2,1 2.3 2.6 2.9 2.6 3.2 3.6 18.3 18.9 17.1 21.9 25.9 27.9 27.2 26.9 1952: 1953: 195k: 1951: ConAll Real SecuFarm sumer o t h e r estate r i t y 37.9 U2.U U2.9 52,2 57.6 6U.0 67.U 70.U Dec* Dec. Dec* Dec* Dec. Dec. Dec. 31 Business 9.0 9.2 10.2 12,U 13.3 11,1 1U.7 I6c3 69.2 62.6 67.0 62.0 61.5 63.3 63.U 69.0 1918: 116.2 111*2 120.1 126.6 132.5 v . s . ' Other Gov*t. s e c u r - T o t a l secur- i t i e s loans ities I 6.lt 16.5 16.3 16. U 16.6 16.3 16.3 16.3 16.2 16.3 16,5 16.7 16.8 16.8 16.7 88.2 89,7 87.7 87.9 89.1 89.7 89.9 92,0 91.1 28.9 30.5 1/33,2 32.7 32.9 3k,5 3U.8 3U.8 36,1 35.8 36.lt 36.9 37.2 37.8 38.7 37.6 37.8 39.0 39.0 38.9 U0.5 39.6 Ui.6 21.6 21.8 li*5 It. 2 5.0 lt.5 U.li U.5 22.1 22.3 22.lt 22.5 22.5 li.lt li*3 lt.0 lt.1 li.l lt.0 li.3 22.5 22,5 22.5 22.5 22.6 22.6 22.7 3.7 3.7 3.6 3.8 3.8 3.9 3.7 21.9 1.7 2,9 3.1 2.9 3.1t 3*9 5.0 5.2 It.9 li.lt 3.9 U.5 U.U U.5 U.U U.3 U.U U.3 3.8 U.8 5.8 7.U 7,5 9.U 10.9 10.9 2.9 3.1 3.U U.2 U»5 U.9 11.2 12.1 12.7 13.2 5*8 6.2 6,6 6.5 13.3 13.3 6.U 6.U 6,5 6.6 6.7 6.7 13.5 U.2 13.7 13.9 1U.3 1U.U 1U.U 1U.5 1U.5 1U.5 1U.7 U.2 U.2 U.2 U.l U.l U.o U.l 1U,6 1U.6 1U.7 15.0 15.3 15.5 15.5 U.2 U.o U.2 U.o U.l 5.1 5.6 6.6 6 . 7 6.6 6.7 6.8 6,9 6,7 6,7 6.7 6.8 6.8 6.9 7.0 Preliminary Estimated Level of b u s i n e s s l o a n s i n c r e a s e d b y , and r e a l e s t a t e l o a n s d e c r e a s e d b y f>300 m i l l i o n a t t h e end of October 1955 t o c o r r e c t c l a s s i f i c a t i o n e r r o r s * No back f i g u r e s r e v i s e d } most of t h e m i s c l a s s i f i c a t i o n p r o b a b l y occurred d u r i n g 1955* Note; Data exclude i n t e r b a n k loans* T o t a l l o a n s a r e a f t e r and t y p e s of l o a n s b e f o r e d e d u c t i o n s f o r v a l u a t i o n r e s e r v e s * Consumer and " o t h e r l o a n s " a r e p a r t l y e s t i m a t e d f o r a l l d a t e s * Other d a t a a r e p a r t l y e s t i m a t e d on a l l b u t June and December d a t e s . Data# b y type of l o a n , have been r e v i s e d s l i g h t l y on b a s i s of p r e l i m i n a r y l o a n d a t a f o r a l l member banks f o r June 6* Data f o r J u l y 3 1 , 1957, a r e e s t i m a t e s and s u b j e c t t o e r r o r * Not f o r p u b l i c a t i o n Banking S e c t i o n , Board of Governors