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FEDERAL RESERVE BANK
of KANSAS CITY
h . i bay
DEC 1 9 1 9 5 8
RESEARCH LIBRARY,
BANKING ANB MONETARY DEVELOPMENTS IN NOVEMBER 19^8
Summary* T o t a l c r e d i t a t a l l commercial banks i n c r e a s e d
s u b s t a n t i a l l y inNovember as a r e s u l t of a s i z e a b l e growth i n l o a n s
and i n holdings of U. S . Government s e c u r i t i e s . S e a s o n a l l y a d j u s t e d
demand deposit a n d currency holdings of b u s i n e s s e s and i n d i v i d u a l s
in c r e a s e d f u r t h e r and U. S. Government d e p o s i t s rose s u b s t a n t i a l l y .
Time d e p o s i t s , which i n o t h e r r e c e n t months had shown l i t t l e change,
declined somewhat more t h a n t h e usual November r e d u c t i o n a s s o c i a t e d
with withdrawal of Christmas savings. Free r e s e r v e s of member banks
were s l i g h t l y below t h e l e v e l f o r September and October.
Bank c r e d i t * T o t a l bank c r e d i t a t a l l commercial banks
i n c r e a s e d $2.1i b i l l i o n i n November, t h e l a r g e s t i n c r e a s e f o r t h i s
month since 195>2, as shown i n Table 1 . In t h e same month l a s t y e a r
bank c r e d i t d e c l i n e d $600 m i l l i o n . A l l of t h e growth i n c r e d i t
t h i s year was accounted f o r by i n c r e a s e s of somewhat more t h a n $1
b i l l i o n each i n loans and i n holdings of U. S. Government s e c u r i t i e s .
Government s e c u r i t y p o r t f o l i o s rose s h a r p l y when commercial banks
acquired i n i t i a l l y most of the $3.0 b i l l i o n of new 21^-day t a x a n t i c i
p a t i o n b i l l s i s s u e d by t h e Treasury on November 20. At o t h e r times
during t h e month, however, t h e y reduced t h e i r Government s e c u r i t y
holdings#
Since t h e beginning of t h e y e a r t o t a l bank c r e d i t has
in c r e a s e d n e a r l y $13 b i l l i o n , much more than i n any o t h e r y e a r since
World War I I and more t h a n t h r e e times t h e average f o r t h e same
months i n 19h7-19$7» Most of t h e i n c r e a s e has been i n U. S. Government s e c u r i t i e s ($9 b i l l i o n ) and o t h e r s e c u r i t i e s ($2.£ b i l l i o n ) .
Loans, on t h e o t h e r hand, have expanded by only a l i t t l e more t h a n
$1 b i l l i o n , f a r l e s s t h a n i n o t h e r r e c e n t y e a r s except 19h9, when
t h e r e was p r a c t i c a l l y no i n c r e a s e , and 1 9 & , when t h e growth was
only s l i g h t l y more t h a n t h i s y e a r .
The November i n c r e a s e of $1.2 b i l l i o n i n l o a n s was
g r e a t e r t h a n t h e average f o r t h e p a s t seven y e a r s . A l l of t h e
p r i n c i p a l t y p e s of l o a n s expanded with t h e l a r g e s t r e l a t i v e growth
occurring i n r e a l e s t a t e l o a n s .
Real e s t a t e loans rose $300 m i l l i o n i n November and n e a r l y
$2 b i l l i o n since t h e beginning of t h e y e a r . The growth t h i s y e a r
has been g r e a t e r than any y e a r since 1955# when t h e i n c r e a s e
amounted t o $ 2 . 3 b i l l i o n . Expansion has been p a r t i c u l a r l y r a p i d
since mid-year, exceeding t h a t i n t h e same p e r i o d i n any previous
year.
Not f o r p u b l i c a t i o n
-2-
Table 1
Estimated Changes i n 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 )
Item
T o t a l loans (excluding
interbank)
Business
Real e s t a t e
Security
Agricultural
Consumer
All other
1958
D c t . 30
Nov. 26
1957
1958
Oct. 31 June 26
Nov. 27 Nov. 26
1957
1958
1957
June 27
Nov. 27
Jan. 1
Nov. 26
Jan. 1
Nov.- 27
+ 1.2
- 0.1
+ 0.9
— 0.5
+ 1.3
+ 1.9
+
+
+
+
•
+
- 0.1
+ 0.1
•• 0 . 1
¥.1
+ 0.1
+ o.k
+ 1.3
— 1.6
+ 0.3
+ 0.2
+ 0.3
- 0.9
+ o.k
- 0.3
y
+15.3
+ 0.1
+
+
1.3
1.9
G.U
0.8
P,
+.o.lt
+ 0.9
+ 0.5
— 0.7
- 0.2
+ 1.1
+ 0.3
o.k
0.3
0.2
0.1
0.1
0.1
-
U. S. Government s e c u r i t i e s
+ 1.3
— 0.1;
+ 2.7
+ l.lt
+ 9.1
- 1.7
Other s e c u r i t i e s
- 0.1
-0.2
+ 0.1*
+ 0.6
+ 2.5
+ 1.1
+ 2.1;
- 0.6
+ lt.0
+ 1.6
+12.9
+ l.lt
T o t a l loans and investments
(less inteAank)
Item
Total l o a n s (excluding
interbank)
Business
Real e s t a t e
Security
Agricultural
Consumer
All other
U. S. Government s e c u r i t i e s
Other s e c u r i t i e s
T o t a l l o a n s and investments
(less interbank)
Change during November
1956
1955
+ 0.6
1951
1953
1952
1951
+ 1.8
+ 1.9
+ o.U
+ 1.2
+ 0.5
+ o.U
+ 0.2
+ 0.6
+ 0.1
+ 0.2
+ 0.3
+ 0.1
+ 0.1
+¥,i
- 0.1
+ 0.1
+ 0.2
+ 0.2
— 0.1
+ 0.1
+ fl{l
+ 0.2
+ 0.7
2/+1.2
"5/+0.2
~+ 0 . 1
+ 0.3
+ 0.1
I/
- 1.5
- 0.1
+ l.lt
+ 1.2
i
+ 0.7
1/
- 0.2
+ 0.1
+ 0.1
1/
+ 0.1
+ 1.3
+ 0.1
+ 1.8
+ 1.7
+ 2.5
+ l.lt
+ 0.6
+ 0.1
— 0.1
+ 0.1
+¥.i
1 / Less t h a n $*>0 m i l l i o n .
? / Level of b u s i n e s s l o a n s i n c r e a s e d by and r e a l e s t a t e l o a n s decreased by $300
m i l l i o n i n October 195? t o c o r r e c t m i s c l a s s i f i c a t i o n e r r o r s . Most of t h e
m i s c l a s s i f i c a t i o n probably occurred i n 1955.
Notes Data f o r November 26, 1958# are p r e l i m i n a r y e s t i m a t e s based on d a t a f o r
weekly r e p o r t i n g banks and e s t i m a t e s f o r o t h e r banks. L a t e r e s t i m a t e s f o r
November w i l l be shown i n t h e Board's s t a t e m e n t , "Assets and L i a b i l i t i e s
http://fraser.stlouisfed.org/
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 December.
Federal Reserve Bank of St. Louis
-3L.lt.3
Table 1 (continued)
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 )
T o t a l loans (excluding
interbank)
#
#
•
Business
Real e s t a t e
Security
Agricultural
Consumer
All o t h e r
e
1955
195U
1953
1952
+ 6.2
+ 9.8
+ 1.5
+ 2.7
+ 5.1
+ lt.6
+ 1.7
2/+5.it
V+2.3
— 0.6
+ 1.5
+
+
+
+
+
+
+ O.lt
+ 2.1
+ 0.9
+ o.l
- 0.1
- O.lt
U. S. Government s e c u r i t i e s
- 3 .it
- 7.6
+ 6.7
+ O.lt
+ 2.6
Other s e c u r i t i e s
- O.lt
+ 0.3
+ 1.5
+ 0.5
+ 0.9
+ 2.it
+ 2.5
+ 9.6
+ 3.It
+ 8.8
T o t a l l o a n s and investments
( l e s s interbank)
- 1.0
- 0.1).
+ 0.8
0.1
1.0
0.2
0.6
l.lt
0.2
1.6
1.0
0.2
0.7
1.6
0.3
+ 1.2
End of December t o end of November
Item
1951
1950
19lt9
1918
19lt7
+ lt.lt
+ 8.2
+ 0.1
+ it.2
+ 6.1t
+
+
+
1/
+ 5.1t
+
+
+
+
+
n . si#
n.a.
n.a#
n.a.
n.a.
n . a#
n.a.
n.a.
n. a.
n.a.
n.® a .
n.a.
n.a#
n . a*
n. a.
n. a.
n.a.
n*a.
U. S. Government s e c u r i t i e s
- O.lt
- 5.3
+
b»3
- 6.It
- it. 7
Other s e c u r i t i e s
+ 0.6
+ 1.9
+ 0.9
+ 0.1
+ 0.8
+ It.6
+ it . 9
+ 5.3
- 2.2
+ 2.5
T o t a l l o a n s (excluding
interbank)
#
1956
+
+
+
+
•
•
End of December t o end of November
Item
0
Business
Real e s t a t e
Security
Agricultural
Consumer
All other
T o t a l l o a n s and investments
(less interbank)
n. a.
1/
2/
3.It
1.0
0.7
0.5
lt.0
1.9
0.2
0.2
1.6
0.7
Not a v a i l a b l e .
Less t h a n $50 m i l l i o n .
Level of b u s i n e s s l o a n s i n c re ase d by and r e a l e s t a t e l o a n s decreased by
$300 m i l l i o n i n 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 . Most of
t
h e m i s c l a s s i f i c a t i o n probably occurred i n 1955.
Not f o r p u b l i c a t i o n
Business l o a n s a t commercial banks i n c r e a s e d $1*00 m i l l i o n
i n November, about t h e same as t h e average f o r o t h e r r e c e n t y e a r s ,
b u t i n c o n t r a s t with a $100 m i l l i o n decline l a s t year*
Since t h e
beginning of 1958 b u s i n e s s loans have d e c l i n e d by $ 1 . 3 b i l l i o n , whereas i n t h e same p e r i o d of o t h e r recent y e a r s t h e y showed i n c r e a s e s
ranging from $900 m i l l i o n t o $5 b i l l i o n with t h e exception of t h e
r e c e s s i o n y e a r s 19%k and 1953 when t h e y d e c l i n e d b y $600 and $100
m i l l i o n , r e s p e c t i v e l y . This d e c l i n e has been t h e major f a c t o r accounting f o r t h e r e l a t i v e l y small growth i n t o t a l commercial bank l o a n s
so f a r t h i s y e a r .
.Seasonal borrowing sc€ c i t y banks by food p r o c e s s o r s , commodity d e a l e r s , and t r a d e concerns was l a r g e r i n November t h a n i n any
o t h e r r e c e n t y e a r except 1952, as shown i n Table 2# Since June,
however, l o a n s t o t h e s e borrowers have amounted t o $1,130 m i l l i o n ,
or about t h e average growth f o r o t h e r recent y e a r s .
Other b u s i n e s s groups expanding t h e i r bank l o a n s i n
November were s a l e s f i n a n c e companies ($lt2 m i l l i o n ) , metal and
metal products manufacturers ($1*0 million), and p u b l i c u t i l i t i e s
$15 m i l l i o n ) . During much of 1958, t h e t r e n d i n outstanding
loans t o t h e s e i n d u s t r y groups has been downward, b u t t h i s t r e n d
appears t o have been h a l t e d i n recent weeks and i n t h e case of
p u b l i c u t i l i t i e s , t o have been r e v e r s e d .
Loans t o t e x t i l e , l e a t h e r , and apparel m a n u f a c t u r e r s , which
a l s o have been d e c l i n i n g during much of 1958, were down f u r t h e r
i n November, while loans t o the c o n s t r u c t i o n i n d u s t r y , which had
been r i s i n g during most of t h e y e a r , a l s o d e c l i n e d .
Consumer loans are estimated t o have i n c r e a s e d $100
m i l l i o n i n November i n c o n t r a s t with a d e c l i n e of t h a t amount
l a s t y e a r . There has been l i t t l e n e t change i n t h e amount of
t h e s e loans outstanding i n 1958. In o t h e r y e a r s s i n c e 191*9,
consumer l o a n s have expanded by $l-$2 b i l l i o n with t h e exception
of 1951 and 195U, when t h e r e was l i t t l e change.
S e c u r i t y loans i n c rease d by $200 m i l l i o n i n November,
a g r i c u l t u r a l l o a n s $100 m i l l i o n , and " a l l o t h e r " l o a n s by $100
m i l l i o n . The growth i n a g r i c u l t u r a l l o a n s sinc e t h e beginning
of t h e y e a r has amounted t o $800 m i l l i o n , the l a r g e s t i n any
recent year.
Deposits and currency. Preliminary e s t i m a t e s i n d i c a t e
t h a t 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 and currency holdings
of i n d i v i d u a l s and b u s i n e s s e s rose by $500 m i l l i o n i n November
Not f o r p u b l i c a t i o n
L.U.3
Table 2
Changes i n Commercial and I n d u s t r i a l Loans
( i n m i l l i o n s of d o l l a r s )
Business of Borrower
1958
1957
1956
+ 150
+ 81
+ 108
+ 339
+ 63
+ 68
+ 52
+ 183
+ 31
+ 282
Sales f i n a n c e
+
1)2
- 175
All o t h e r - 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 , e t c .
Other manufacturing
and mining
Public u t i l i t i e s
Construction
A l l o t h e r t y p e s of
business
-
b9
+
ko
- 169
- 89
k/
+
T o t a l change
1951*
1953
1952
Oct. 3© Oct. 31 Nov. 1 Oct.27 Oct.2b Oct .29 Oct. 30
Nov. 26 Nov. 27 Nov.28 Nov. 30 Nov.2k Nov.25 Nov. 26
Food p r o c e s s o r s
Commodity d e a l e r s
Trade concerns
Total
Classified
Unclassified
1955
1/
"
+ I51i
+ 135
+ 108
+ 87
+ 330
+ 81
+ 67
+ 221
+
+
+
+
+ 60
+ 315
— 56
+ 65
+ 192
+ 116
+ 253
+ 88
- 191
- 25
+ 67
+
57
76
+
57
7
+
17
k7
2
-
21
72
1
+
+
-
3
69
3
+
21
+
25 k9 +
97
2k
89
+
73
156
112
91
359
+ 187
- 56
+ 15
- 13
- 1*2 - 30
+ 10 + 32
6 - 22
+
8
— 66
+
+ 331
- 91
- 163
- ii8
+ 53lt + 8 99 + 316 — 25
9 %/+773
- 55 - 71
+ 610
9
+ 2U0
- 211
+ k79 + 890 y + 1 0 8 9 ^ - 96
+ 601
31
73
22
k9 +
50
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
loans#
3/
?PP c e r t i f i c a t e s of i n t e r e s t which are e s t i m a t e d t o have amounted
t o $175 m i l l i o n .
2/
c e r t i f i c a t e s of i n t e r e s t which are e s t i m a t e d t o have increased
?o2o million#
k/ Less t h a n $500 thousand.
ETote. 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 , t h e s e banks hold over 90 p e r 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 p e r 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
November 26, 1958.
Not f o r p u b l i c a t i o n
-6-
L.U.3
Table 2 (continued)
Changes i n Commercial and I n d u s t r i a l Loans 1 /
(In m i l l i o n s of d o l l a r s )
0
End of June t o end of November
Business of Borrower
1958
m
#
#
1957
1956
1955
1951
+ 651*
+ 635
+ 2?7
+1516
+ las
+ 1*75
+ 271
+12 61*
+ 388
+ 1*61
+ 188
+1037
1953
1952
Food p r o c e s s o r s
Commodity d e a l e r s
Trade concerns
Total
+ 500
+ 388
+ 2l*2
+1130
+
+
+
+
Sales f i n a n c e
- 192
- 677 - las
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 , e t c .
Other manufacturing
and mining
Public u t i l i t i e s
Construction
A l l o t h e r t y p e s of
business
- 582
- 561
- sa
- 188
- 62
-139 9 + 70 + 5 - 68 7
+ 61 + 1*86 + 153 + 38 + 56 + 201*
- 110
+ 59
+ 1*8
-
17
96 + 79 + 55 - 1*5 •
+ 211* + 58 - 271 — 28 - 57 + 101 + 68 -
+ 232
-
77 + 151* + 313 + 161* + 65 + 129
+ 359
- 21*1*
- 589 +1771 +2316 + 275 + 388 +2029
- 1*15 - 232 /-121 V- 27 y + 20 + 71*
+ 115
-look
Classified
Unclassified
#
T o t a l change
l/
2/
3/
V
—
P r i o r t o week ending January
loans.
Includes CCC c e r t i f i c a t e s of
t o $175 m i l l i o n .
Includes CCC c e r t i f i a c t e s of
#353 m i l l i o n .
Includes CCC c e r t i f i c a t e s of
$300 m i l l i o n .
Notei
350
337
21*6
933
+
+
+
+
1*15
327
186
928
+ 686
+ 660
+ 227
+1573 .
+ 223 - 196 - 308 + 138
+ 61*3 + 829 - 565 - 231* + 321
- 51*8 - 221; + 79 - 521* - 266 - 30
-
16 + 70
3 — 68
2 + 23
+1539 4/+2195 y+2i*8 y+i*o8 +2103
11 } 1956# included changes i n a g r i c u l t u r a l
i n t e r e s t which a r e e s t i m a t e d t o have amounted
i n t e r e s t which a r e e s t i m a t e d t o have inc re as ed
i n t e r e s t which are estimated t o have declined
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 , t h e s e banks hold over 90 p e r cent of t o t a l comm e r c i a l 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 p e r cent of t h o s e of a l l commercial banks. Data a r e p r e l i m i n a r y
f o r week of November 26, 1958.
Not f o r p u b l i c a t i o n
following an i n c r e a s e of $1.2 b i l l i o n i n t h e previous month. Since
t h e beginning of t h e y e a r t h e s e a s o n a l l y a d j u s t e d money supply has
in c r e a s e d more t h a n $5 b i l l i o n , an annual r a t e of growth of It p e r
c e n t . This has been a l a r g e r r e l a t i v e as w e l l as a b s o l u t e growth
t h a n i n t h e comparable p e r i o d of any y e a r since 195)1* Most of
t h e i n c r e a s e , however, occurred during t h e period March through
July.
Demand d e p o s i t s a d j u s t e d b e f o r e seasonal c o r r e c t i o n
in c r e a s e d $>800 m i l l i o n i n November, somewhat more than t h e usual
seasonal growth f o r t h i s month. A l l of t h e i n c r e a s e r e f l e c t e d
growth o u t s i d e weekly r e p o r t i n g banks; t h e l a t t e r showed no change
over t h e month. The i n c r e a s e i n demand d e p o s i t s a d j u s t e d was
a s s o c i a t e d with a $1.7 b i l l i o n expansion in holdings of U. S.
Government s e c u r i t i e s , p r i n c i p a l l y a t commercial banks, and a
Si b i l l i o n expansion i n loans and investments o t h e r t h a n U. S.
Government s e c u r i t i e s . U. S. Government d e p o s i t s a t commercial
and Federal Reserve Banks a l s o increased by # 2 . 1 b i l l i o n i n
November, considerably more than t h e November i n c r e a s e of any
year s i n c e 19U5«
Time d e p o s i t s a t commercial banks d e c l i n e d by $800
m i l l i o n i n November, somewhat more than t h e usual r e d u c t i o n
a s s o c i a t e d with withdrawal of Christmas s a v i n g s . In r e c e n t months
t h e r a p i d expansion i n time d e p o s i t s a t commercial banks, which
began i n 1957 and a c c e l e r a t e d i n t h e f i r s t p a r t of 1958, has almost
come t o a h a l t . In September t h e r e was no i n c r e a s e and i n October
t h e i n c r e a s e amounted t o only $200 m i l l i o n . This compares with average
i n c r e a s e s of $900 m i l l i o n p e r month i n t h e f i r s t h a l f of t h e y e a r and
$500 m i l l i o n p e r month during J u l y and August. At c i t y banks
time d e p o s i t s began t o d e c l i n e i n September b u t t h e s e d e c l i n e s
were o f f s e t by small i n c r e a s e s a t banks o u t s i d e weekly r e p o r t i n g
banks i n a l l months except November. Deposits a t mutual savings
banks are estimated t o have inc re ase d by $100 m i l l i o n i n November,
compared w i t h no change i n t h e same month i n o t h e r r e c e n t y e a r s .
The s e a s o n a l l y a d j u s t e d annual r a t e of t u r n o v e r of demand
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
averaged 23.2 times i n October, almost unchanged s i n c e J u l y .
Turnover a t t h e s e banks i s now only about two p e r cent below t h e
t h i r d q u a r t e r 1957 peak. At banks i n New York C i t y , t h e average
f o r October was 51*6 t i m e s . This was somewhat h i g h e r than September
b u t w e l l below t h e second q u a r t e r 1958 average of 56.9 times*
Not f o r p u b l i c a t i o n
U.(,3
-8-
Table 3
Estimated Changes i n Deposits and Currency
(In 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 1 /
Demand d e p o s i t s a d j u s t e d
Currency o u t s i d e banks
Total
Seasonally unadjusted d a t a 1 /
Demand a d p o s i t s a d j u s t e d
Currency outside banks
Total
Time d e p o s i t s
Commercial banks
Mutual savings banks
U. S, Government d e p o s i t s
Total
1958
1957
1958
net. 30 Oct. 31 June 26 June 27 Jan.
Nov. 26
Nov. 27
+ 0.3
- 0.6
+ 0.5
- 0.2
+ 0.2
+ 0.8
+ 0.7
+ 1.5
- 0.7
— 0.8
+ 0.1
+ 2.1
+ 2.9
Factors a f f e c t i n g d e p o s i t s
(signs
and currency
Bank loans and investments
o t h e r than U. S. Govt. s e c . 3 / + 1 . 0
Commercial
~~
+ 1.1
Mutual savings
+ 0.2
Bank holdings of U. S.
Government s e c u r i t i e s :
+ 1.7
Federal Reserve
+ O.it
Commercial
+ 1.3
Mutual saving and o t h e r
If
Gold stock and f o r e i g n
d e p o s i t s a t F . R. Banks
2/
Other f a c t o r s
+ 0.2
V
1957
1958
Nov. 26
2.9
+ o.li
+
+
-
0.1
3.0
1/
0.7
5.9
0.9
6.8
0.7
o,5
0.5
1.1
0.5
0.7
-•§{3
3.9
luO
~5T
Nov. 27
1
Nov. 26
Jan. 1
Nov. 27
5.2
ZL
— 0.8
+ o.li
- l.k
+ 0.2
- 1.2
+ 1.6
+ 0.7
+ 2.3
+ 1.2
+ 1.0
5.2
- o.it
+ 1.3
- b.2
4* 1 . 7
+ 7.6
— 0
+ o.U
6.0
+ 0.I4
+
+
+ 2.1
+11.0
- 1.5
1957
4*
1.8
1.6
+ 0.2
+
5.L
li.ii
+ 1.3
— 0.8
+
+ 0.6
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)
- 0.1
- 0.3
+ 1.9
+ 1.3
+ 1.1
+ 1,0
+ 0.1
+ 1.0
+ 6,0
+ 3.8
+ 2.7
- 0.3
+ 0.3
+ 1.6
+ 0.7
+ 1.6
- 0.2
+
+
+
-
- 0.5
- 0.1;
+ 0.2
+ 0.2
- 0.7
- 0.5
+ 0.3
— 2.0
- 3.2
+ 0.2
- 0.1*
3.3
0.8
2.7
0.1
+ l.il
— 0.8
+10.2
+ 9.1
+ 3.0
+ 2.1
-
3.8
1.3
1.7
0.7
+ 0.9
- 1*3
Seasonally a d j u s t e d d a t a are f o r l a s t Wednesday t h r o u g h o u t j unadjusted d a t a are
f o r l a s t Wednesday except in case of June and December c a l l d a t e s , when
available.
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 t h e
F e d e r a l Reserve, and loans t o f o r e i g n banks; changes i n t h e s e 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 ire re no changes i n t h e s e
items, changes a t commerical 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 i n t e r b a n k l o a n s ,
domestic and f o r e i g n .
%
Notes
Data f o r November 26, 1958, are p r e l i m i n a r y e s t i m a t e s based on d a t a f o r
weekly r e p o r t i n g banks and e s t i m a t e s f o r o t h e r banks. Later e s t i m a t e s
f o r November w i l l be shown i n the Board'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 December.
#
L.lt.3
-9_
Table 3 (continued)
Estimated Changes i n Deposits and Currency
(In 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 1 /
Demand d e p o s i t s a d j u s t e d
Currency o u t s i d e banks
Total
Seasonally unadjusted d a t a 1 /
Demand d e p o s i t s a d j u s t e d
Currency outside banks
Total
Time d e p o s i t s
Commercial banks
Mutual savings banks
U. S. Government d e p o s i t s
Total
Item
Seasonally a d j u s t e d d a t a 1 /
Demand d e p o s i t s a d j u s t e d
Currency outside banks
Total
Seasonally unadjusted d a t a 1 /
Demand d e p o s i t s a d j u s t e d
Currency o u t s i d e banks
Total
Time d e p o s i t s
Commercial banks
Mutual savings banks
U. S. Government d e p o s i t s
Total
n®
1/
2/
End of December t o end of November
1956
1955
1951
1953
1952
+ 1.2
+ 0.3
+ 1.5
+ 2.8
+ o.5
+ 3.3
+ 3.3
+ 2.9
+ 1.0
+ O.it
+ l.lt
+ 3.5
+ 1.2
+ lt.7
- 1.6
+ o.It
- 1.9
+ 2.5
+ 1.2
+ 1.5
±JL»J ,
+ 1.9
+ o.k
+ 2.1
+ 0.9
+ 1.5
- 0.1
+ 2 .It
+ 1.5
- 0.6
+ 1.0
+ 3.9
+ 2.6
+ 1.5
+ 2.6
+ 7.5
+
+
+
+
+
+
+ 1.2
+ 1.1
+ 2.3
+
3.1t
+ 2.1
+ 1.1
- 0.3
Z/
1.3
o.k
0.9
3.5
2.2
l.lt
0.6
3.2
+ 3.1i
+ 9.0
End of December t o end of November
1951
1950
19h9
+ 5.0
+ 1.0
+ 6.0
+ it.6
- 0.2
+
lt.lt
+ U.o
+ Q.ii
+
ii.lt
+ l.L
+ 1.0
+ o.6
+ lt.5
+ 0.7
+ 6.5
- Qe.5
+
+
+
+
It.o
0.1
0.2
0.5
0.6
3.5
1918
19lt7
+ 0.2
- 0.5
- 0.3
- 1.3
— 0.6
- 1.9
+ 3.1
- o.5
- 1.9
- 0.6
-+ 2.5
0.6
+ 0.3
+ 0.5
+ 1.6
- 0.3
- 1.5
+ 0.5
+ 0.1
- 0.9
n«a.
n.a.
+ 2.6
- 0.P
+ 2.It
+ 2.0
+ 1.2
+ 0.7
— 0.3
+ lt.1
Seasonally a d j u s t e d d a t a are f o r l a s t Wednesday t h r o u g h o u t j unadjusted
d a t a are f o r l a s t Wednesday except in case of June and December c a l l
d a t e s , when a v a i l a b l e .
Less than $50 m i l l i o n .
Hot f o r p u b l i c a t i o n .
L.iu3
-10-
Bank r e s e r v e s . Member bank reserve p o s i t i o n s t i g h t e n e d
s l i g h t l y f u r t h e r i n November. Free r e s e r v e s averaged #38 m i l l i o n ,
about $63> m i l l i o n below t h e l e v e l f o r October and September and
$3!?0 m i l l i o n below August, as shown i n Table It. In t h e period
March through J u l y f r e e r e s e r v e s had remained near $000 m i l l i o n .
Borrowings i n November were $1*86 m i l l i o n , about $60 m i l l i o n g r e a t e r
than i n October, while excess r e s e r v e s were Sf>25> m i l l i o n , almost
unchanged from t h e preceding month. The t i g h t e n i n g i n reserve
p o s i t i o n s occurred p r i n c i p a l l y a t c e n t r a l reserve c i t y banks;
a t reserve c i t y and country banks t h e r e was l i t t l e change from
t h e preceding month.
Free r e s e r v e s dropped from about $70 m i l l i o n a t t h e
beginning of t h e month t o a low of $6 m i l l i o n i n t h e f i r s t week
of November when reserve needs were l a r g e and then rose t o a high
of Si50 m i l l i o n i n t h e week ending November 12, when t h e beginning
of t h e mid-month r i s e i n f l o a t and a d e c l i n e i n r e q u i r e d r e s e r v e s
eased reserve p o s i t i o n s . In the ensuing two weeks ending November 26,
f r e e r e s e r v e s d e c l i n e d t o about f l £ m i l l i o n due i n p a r t t o some
r e d u c t i o n i n System holdings of Government s e c u r i t i e s i n t h e week
ending November 19 and t o a l a r g e i n c r e a s e i n r e q u i r e d r e s e r v e s i n
t h e week of November 26 a s s o c i a t e d with purchase by commercial banks
on November 20 of t h e new Treasury t a x a n t i c i p a t i o n b i l l s . By t h e
beginning of December borrowings exceeded excess r e s e r v e s by about
$50 m i l l i o n f o r t h e f i r s t time since January of t h i s y e a r .
The e f f e c t i v e r a t e on Federal funds f l u c t u a t e d between
2 - 1 A and 2-1/2 p e r cent during most of November. In t h e f i r s t
s i x days of t h e month t h e r a t e stood a t 2 p e r c e n t , i t dropped
t o a low of 1 p e r cent on November 12, and t h e r e a f t e r moved upward
and remained a t or n e a r 2-1/2 p e r cent during t h e remainder of t h e
month. Rates on p r i v a t e open market paper showed varying t r e n d s .
The r a t e on 3-6 month f i n a n c e paper declined by 1 / 8 of 1 p e r cent
t o 2-3/h p e r cent on November 1 and remained a t t h i s l e v e l . The
U-6 month prime commercial paper r a t e , which was 3 - 1 / 8 p e r cent
a t t h e beginning of t h e month, d e c l i n e d b r i e f l y during t h e middle
of t h e month t o 3 p e r c e n t , and t h e r e a f t e r i n c r e a s e d t o 3 - 1 / 8 p e r
c e n t . Rates on new and renewal c a l l loans secured by U. S. Government s e c u r i t i e s ranged between 2 - 2 - l / L p e r cent a t t h e beginning
of t h e month b u t moved upward g r a d u a l l y t o a l e v e l of 2-3/It p e r cent
b e f o r e t h e end of November. Other p r i v a t e open market paper r a t e s
were unchanged during November.
Not f o r p u b l i c a t i o n
e
—1—
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 )
All
member
Q u a r t e r l y averages
1956s F i r s t
Second
Third
Fourth
1957s
First
Second
Third
Fourth
1958:
First
Second
Third
1957:
1958:
1958:
#
Note:
June
July
August
September
October
November
December
January
February
March
April
May
June
July
August
September
October
November
October 29
November 5
November 12
November 19
November 26
December 3
-
310
Ull
230
128
-
-
108
185
WtO
265
88
- 196
- 2 la
- 109
-
!
New York
170
96
157
16 6
313
508
31*1
-
9
18
28
508
383
2*71
1*66
M
293
133
—
-
185
181
289
25ii
llil
80
105
122
32k
h93
k93
517 <
-
516
383
95
111
38
67
6
150
12
18
h9
-
Ii6
2b
h2
3
51
7
16
22
79
17
h2
69
k
- 102
— 5o
-
5o
l
Chicago
Reserve
City
-
117
175
71
113
-
329
Itl8
31+1
2 lit
336
278
338
365
-
115
lip.
56
105
-
221
373
h28
320
316
22k
286
276
-
16
it
1
-
27
63
55
365
1*22
k2h
-
ltd
28
26
115
115
123
77
-
1*88
1|52
1*00
U33
389
3lt2
228
210
278
336
301
252
277
25
6
18
7
7
12
k
-
lltlt
1
62
lilt
89
57
56
22
201
187
192
337
353
1*06
1*59
399
JU08
1*71
1*26
378
281
289
181*
161
110
183
180
369
310
256
287
—
-
— •"« —
-
3
3
16
-
1
9
7
lit
19
22
Data f o r November and December are 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
'
—
-
231
170
31U
Country
2a
L.U.3
-12—
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 )
November
Item
1958
July-November
1957
1958
J anuary-November
1957
1958
1957
Member bank reserve balances
Total
Required r e s e r v e s 1 /
E f f e c t of r e d u c t i o n i n
requirements
E f f e c t of deposit change
Excess r e s e r v e s 1 /
+
6b
-
+
73
- 11|6
+
-
73
9
- 12+6
+ 6h
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 o p e r a t i o n s
Federal Reserve f l o a t
Other f a c t o r s
E f f e c t of above
f a c t o r s on r e s e r v e s
82
-
+
-
60
-
2h
- 880
- 577
39
-
38
- 830
- 136
39
99
+
38
lb
-II4I4.O
+ 610
- 50
- h36
-
11+1
(signs i n d i c a t e e f f e c t on r e s e r v e s )
- 3b2
- 225
- 693
- U32
+ 200
+ WL
- 79
+ 14
+
I
+ 23
+ 99
+ 25
- 17
- 26
+
+
+
837
67
123
1+5
+ 193
+
lt5
- bh
- lit
-2052
+ 136
- ItOli
- 188
+ 851
+ 50
- 507
- 136
- 353
- 11+1+
-1295
- 252
-2308
+ 699
+ 111 9
+ 63
+1237
+ 227
+1131
-1275
+ 351+
+ 302
+ 52
+
2
+ 69
+ 21+
+ 1+5
+
2
+ 900
+ 06i+
+ 36
9
+ 1*28
+ 359
+ 69
2
+1668
+ w
- 279
9
-I3I+8
-12^
- 126
- 31
+ 61
+
2
-
+ 3hh
+
2
- 201
+
2
- 22b
U
+ 116
- 12
Federal Reserve loans and
investments:
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 o t h e r s
1/
Data f o r November 1958 are 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
7
1
L.ii.3
-13-
Reserves supplied t o member banks i n November p r i n c i p a l l y
by Federal Reserve purchases of U. S. Government s e c u r i t i e s
($355 m i l l i o n ) were more than absorbed by an i n c r e a s e i n currency
i n c i r c u l a t i o n ($3U0 m i l l i o n ) , a decline i n gold stock and f o r e i g n
accounts ($80 m i l l i o n ) , and an i n c r e a s e i n r e q u i r e d r e s e r v e s
(#73 m i l l i o n ) .
-IkDeposits and Currency
(In b i l l i o n s of d o l l a r s )
L.k.3
Year
or
month
End of Dec.
19k7
1948
19k9
l&O
-1951
1952
19$3
195k
19#
1956
1957:
June
July
Aug.
Sept
Oct.
Nov.
Dec.
26
31
29
25
30
27
31
I3J
(21
i l l
Seasonally
Seasonally a d j u s t e d
adjusted
money supply 1 /
money
Cursupply
and
Demand
Total
rency
d
e
p
o
s
i
t
s
time
dep.
(2+3)
a d j u s t e d outside a t com'l.
banks
banks (1+7)
111.1
108.8
109.0
Ilk.3
120.1
11:1
8k. 3
39.8
9k.5
97.8
99.5
25.9
25.3
2k.7
2k.5
lk6.3
lkk.6
lk5.1
165.k
170.5
176.5
25.6
129.7
133.2
13k.k
102.8
105.8
106.7
26.9
27.3
26.9
27.k
27.7
135.2
107.3
27.9
12k.7
126.8
136.0
13k.7
133.9
13k.2
13k.0
133.2
108.0
106.8
106.2
106.5
105.9
105.1
28.0
27.9
27.7
27.7
28.1
28.1
150.6
158.0
181.6
185.0
(S)
(9)
(10)
(11)(12)
+11)
87.1
85.5
85.8
92.3
98.2
101.5
102.5
106.6
109.9
lll.k
189.7
107.2
107.2
110.3
189.3
(8)
Total
deposits
U. S .
CurDemand
rency
and
Gov't
deposits Total Commer- Mutual P o s t a l deposits outside currency
adjusted (7+8+9) c i a l
banks (5+6+10
savings savings
If
105.6
106.6
189.0
(7)
Time deposits
189.2
190.k
189.k
189.0
(6)
105.1
105.5
58.6
59.2
61.5
65.8
70.k
75.3
78.k
82.2
86 .k
86.7
87.1
87.7
88.1
87.6
89.1
in
36.1
36.3
37.9
k0.7
k3.7
k6.8
k8.k
50.6
5k.0
5k .k
5k.7
55.1
55.5
55.0
56.1
Hi
19.3
20.0
20.9
22.6
2k.k
26.3
I:1}
3.2
2.9
2.7
2.5
2.k
2.1
k.l
3.7
3.9
5.6
lw 8
t&
25.k
25.k
26.3
27.5
28.1
27.9
28.3
28.3
172.3
172.7
173.9
180.6
189.9
200.k
205.7
21k. 8
28.1
30.0
1.9
1.6
5.1
k.k
k.5
30.9
30.9
1.5
l.k
l.k
l.k
l.k
1.3
1.3
5.2
k.2
k.9
k.5
k.O
3.7
k.7
27.8
22k.9
27.8
22k.9
225.k
1.3
1.3
1.3
2.9
k.2
6.k
27.3
27.k
31.0
31.2
31.3
31.3
31.7
1958:
Jan. 29
188.8
132.2
10k.7
89.8
107.6
27.5
56.6 31.9
Feb. 26
27.6
105.6
133.1
105.5
190.7
32.1
90.9
57.6
Mar. 26
13k. 0
27.6
106 .k
192.8
10k.6
58.8 32 .k
92.5
Apr. 30
107.2
27.8
135.0
107.2
19k.9
93.6
32.5
59.9
May 2B
107.6
196.2
105.8
27.9
135.5
9k.6
60.7
32.7
June 25
28.0
107 .k
197.0
61.6 32.8
135.k
105.7
95.6
July 3C
28.1
108.1 96. k
137.6
109.5
199.9
62.3
32.9
Aug. 27
28.1
Q7.0
109.2
200.0
137.3
62.7
107.5
33.1
Sept 2k
108.9
27.8
108.1
136.7
199 .k
62.7
97.2
33.3
Oct. 29p
110.0
110.8
200.8
27.9
137.9
62.9
97.k
33.k
Nov. 26p
28.1
110.3
138.k
111.6
200.5
62.1 33.5
96.7
Prellmi
5 / Seasona?fy^adjusted s e r i e s begins i n 19k7 and i s a v a i l a b l e only ^for l a s t Wednesday
http://fraser.stlouisfed.org/
/ At Bank
cAnmerciala
b r i n g s , and f e d e r a l R e s ^ v e Banks,
Federal2Reserve
of St. Louis
1.2
1.2
1.2
1.2
1.2
1.2
1.2
1.1
27.8
I?:i
28.5
28.3
27 .k
6.0
6.1
10.2
27.8
6.2
28.0
k.8
5.0
k.2
6.3
of the month.
27.6
27.8
27.9
27.9
28.0
28.7
221.0
226.k
225.2
227.0
227.0
232.3
227.7
228.1
230.9
23k.k
23k.3
239.3
237.2
238.7
238.1
2k0.k
2k3.3
1$'
if*
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 )
£
a
a
Date
Total
loans
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
31
31
31
31
31
31
31
31
31
31
116.2
lilt. 2
120.1
126.6
132.5
Htl.5
115.5
155.7
160.3
161.5
69.2
62.6
67.0
62.0
61.5
63.3
63.1
69.0
61.6
58.6
9.0
9.2
10.2
12.lt
13.3
llt.l
lit. 7
16.3
16.7
16.3
37.9
lt2.lt
42.9
52.2
57.6
61t.O
67.lt
70.lt
82.0
89.7
1957:
Jan.
Feb*
Mar.
Apr.
May
June
July
Aug.
Sept
Oct.
Nov.
Dec.
30
27
27
2k
29
26
31
28
25
30
27
31
161.6
161.1
161.1
163.8
163.8
16^.3
1614.1
57.7
56.8
16.2
16.3
16.5
16.7
16.8
16.8
16.8
16.9
17.1
17.6
I7.lt
17.9
87.7
87.9
89.1
89.7
89.9
92.0
91.0
91.5
92.2
91.6
91.5
93.2
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept
Oct.
Nov.
29
26
26
30
28
25
30
27
2ij
29p
26p
17.9
18.2
18.9
19.3
19.lt
20.0
19.9
20.2
20.6
20.5
20.lt
90.5
90.6
91.5
91.9
91.3
93.6
92.2
92.1
92.6
93.3
9lt.5
a
1958:
a
U. S.
Other
Govt,
secursecurities
ities
1917:
191*8:
19h9t
1950s
1951:
1952:
1953:
1951:
1955:
1956 s
0
#
Loans
and
investments
I6I1.6
165.1
166.5
165.9
169.3
166.2
167.1
169.9
17b.O
173.8
178.2
176.2
178.3
177.9
179.8
182.2
55.7
57.5
57.1
55.5
56.3
56.2
55.9
57.3
56.9
58.2
57.7
58.3
59.6
62.8
63.1
6I1.6
61t.l
66.1
6I1.7
66.0
67.3
Business
18.2
18.9
17.1
21.9
- 25.9
27.9
27.2
26.9
33.2
38.7
Real SecuCone s t a t e r i t y Farm sumer
All
other
9.11
10.8
11.5
13.5
lit.6
15.7
16.7
I8.lt
20.8
22.5
2.1
2.3
2.6
2.9
2.6
3.2
3.6
It.5
5.0
lt.3
1.7
2.9
3.1
2.9
3.1t
3.9
5.0
5.2
lt.5
lt.2
3.8
lt.8
5.8
7.It
7.5
9.1t
10.9
10.9
13.2
llt.6
2.9
3.1
3.It
lt.2
lt.5
It. 9
5.1
5.6
60 5
7.0
37.6
37.8
39.0
39.0
38.9
lt0.5 ,
39.6
39.9
it0.3
39.7
39.6
lt0.5
22.5
22.5
22.5
22.5
22.5
22.6
22.7
22.8
22.9
22.9
23.0
23.1
3.7
3.7
3.6
3.8
3.8
3.9
3.7
3.8
3.8
3.7
3.6
It.2
lt.2
lt.2
lt.2
lt.1
lt.1
lt.0
3.9
3.8
3.8
lt.0
lt.0
lt.1
lit. 5
lit. 5
llt.6
lit. 9
15.1
15.3
l5.lt
15.5
15.6
15.7
15.6
15.7
6.8
6.8
6.8
6.9
7.0
7.2
7.2
7.2
7.3
7.2
7.3
7.3
38.8
38.6
39.2
38.it
38.1
38.8
37.9
38.3
38.7
38.8
39.2
23.1
23.2
23.2
23.3
23.5
23.7
23.9
21.1
2lt.3
2lt.7
25.0
3.6
3.9
lt.2
5.1
lt.lt
5.1t
It. 5
3.6
3.7
3.6
3.8
lt.2
lt.lt
lt.lt
lt.lt
lt.lt
lt.6
15.5
15.3
15.2
15.3
I5.lt
15.5
15.6
15.6
15.6
15.6
15.7
7.2
7.1
7.1
7.2
7.2
7.it
7.1t
7.6
7.5
7.6
7.7
lt.6
lt.6
It. 7
It. 8
It . 9
p - Preliminary
Noter Data exclude i n t e r b a n k l o a n s . T o t a l loans are a f t e r and t y p e s of l o a n s b e f o r e
deductions 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 loans" a r e p a r t l y estimated f o r
a l l d a t e s and have been r e v i s e d beginning w i t h June 1957. Other d a t a are p a r t l y estimated
on a l l but June and December c a l l d a t e s . Data f o r November 26, 1958 are p r e l i m i n a r y
e s t i m a t e s based on d a t a r e p o r t e d by a sample of member banks. Loans by type f o r August
and September 1958 have been r e v i s e d i n accordance with p r e l i m i n a r y c a l l r e p o r t d a t a f o r
September 2lt, 1958*
Not f o r p u b l i c a t i o n
12/16/58
Banking S e c t i o n , Board of Governors,
@FedFRASER