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L.43 "OERAL RF.Sf of KANSA: BANKING AND MONETARY DEVELOPMENTS IN DECEMBER 1956 Summary, Total loans and Investments a t a l l commercial banks Increased substantially in December r e f l e c t i n g principally loan expansion but holdings of U. S, Government s e c u r i t i e s also rose. Demand deposit and currency holdings of businesses and individuals increased s l i g h t l y more than the usual seasonal amount. Net borrowed reserves of a l l member banks declined f u r t h e r . Bank c r e d i t . Preliminary estimates indicate t h a t t o t a l loans and investments a t a l l commercial banks may have increased around $2,3 b i l l i o n in December, as shown in Table 1, This vas about the same as in December l a s t year and more than in December of any postwar year. Loans increased $1.8 billion# with a l l major categories showing some growth. U. S. Government s e c u r i t i e s increased around $500 million, mainly a t c i t y banks, while holdings of other s e c u r i t i e s declined f u r t h e r . I n i t i a l l y , banks probably took most of the $1 b i l l i o n new Treasury b i l l s offered on December 17, but they sold U. Government s e c u r i t i e s a t other times in the month. Last year in December, t o t a l loan growth was about the same as t h i s year, but holdings of U, S. Government s e c u r i t i e s rose less and holdings of other s e c u r i t i e s also increased. Business loans a t a l l commercial banks rose around $1 b i l l i o n in December, probably the largest increase on record f o r that month a f t e r adjustment f o r loan r e c l a s s i f i c a t i o n included in 1955 data. At weekly reporting banks, the December expansion was considerably larger than a year ago, while a t other banks, I t was l e s s . Over half the December increase a t c i t y banks, as shown in Table 2, was in loans t o sales finance companies, which genera l l y Increase bank borrowing toward the year-end to r e t i r e outstanding open-market paper. Bank lending to food processors and commodity dealers, which usually tapers off towards year end, continued t o expand a t about the same rate as in November. Loans t o metals manufacturers and public u t i l i t i e s rose f u r t h e r in December while those to petroleum concerns, which generally had been increasing a l l year, declined. Real e s t a t e and consumer loans rose f u r t h e r in December. Security loans also Increased as is expected a t the year-end. Total loans and investments a t a l l commercial banks increased around $4.5 b i l l i o n in 1956, about the same as in both 1955 and 1953, but less than in any other year since 1948. The credit decline in the f i r s t half of 1956 was about the same as in 1955# t u t the subsequent expansion was considerably less in the Not f o r publication L.li3 y • 2 • Not f o r publication Table 1 Estimated Changes in Loans and Investments at All Commercial Banks "(In b i l l i o n s of dollars) Item 1956 1955 ' Nov, 29,- tleca 1 , Dec* 26 Dec* 31 Total loans (less 6/+ 1*8 bank) Business f / + 1.0 Real estate + Ool Security + 0.3 + 0.1 Agricultural + 0.3 Consumer y All other loans U« S« Govt. sec. Other securities Total (less bank) Item + 0 . 1 ~ * 0.8 + o.5 - 0.1 + 0,2 + 0.2 + 0,2 + 0,5 y 1/ * 0.2 0*1 + 0,1 a / W + 2.3 + 2,1 s + 0.1 + 1.1 + 0.2 - 1.7 - 0.3 - 0.1 % + 5.5 1956 1st, 2nd. 3rd. Uth# quarter quarter quarter quarter + 2,9 + 1.6 + OoU + 0*6 - o,5 ** 0.1 — Ool - 0 . 1 + 0.8 + 0.3 + 0.2 y U. So Govt. gee. - 3.0 - 2.0 Other s e c u r i t i e s Total (less bank) - oa — Ool — Ie8 + 0o8 i + o06 2.0 h/+ Year ending« Dec. 26, Doc# 31# 1956 , 1955 +11.6 6/+ 8*1 5A o.9 Total loans (less bank) Business Real e s t a t e Security Agricultural Consumer All other loans 1/ 1955 '' July 1,~ Dec* 31 + 1*8 6A 3«9 0.5 h/+ ' 1956' July 1 , Dec, 28 " + 1.8 - 0.7 ~ + + + X.6 + 0.2 3*0 - 7*U„ - o,5 + O.U h/- y y y „ + it»6 * ii.6 1955 1st# 2nd* 3rd, quarter quarter quarter + 0.8 0.6 0.7 2.3 0.9 lithe quarter + 1*0 6/+ 2.9 + 0,8 + 0.5 + 0*3 — 0.3 + 0.2 + 0.3 * 0.1 + 0.2 + 0.3 + 0.1 - 0.1 - o.U — 0.3 + 0.3 + 0.2 + 0.8 + 0,6 + o.U 1.6 - U.8 - 0.9 - 1*3 - o.U - 0,3 + 0.7 - 0.2 + 0.1 - 0.2 - 3*3 + 2.U + 1*6 + 3.9 y • l.U h/+ % + o.5 + 0»6 + 3.6 + 1*5 + 0.8 + O.b - o*5 + + + - 2«7 1*6 0.8 0.3 0.5 + o.5 + o.Zt ~ + + + - 0.8 0*6 0.5 0.1 Business loans may decline $100 million or so between the l a s t Wednesday of December and the 31st» y Level of business loans increased by, and real e s t a t e loans decreased by# $300 million a t end of October 1955 t o correct c l a s s i f i c a t i o n e r r o r s ; no back figures revised. Most of the misclassification probably occurred during 1955° U. S. Government security holdings may decline $100 million or so between the l a s t Wednesday of December and the 31st* y On December 31, 1955# the c a l l report was rearranged and c l a r i f i e d ; some loans previously included in "other loans to individuals" were r e c l a s s i f i e d into other loan categories, and while most of them probably went into "other loans", i t appears, although there are no actual comparative data, t h a t "commercial and industrial loans" were affected to some extent* y In addition t o changes in loans by type, t o t a l loans net probably declined f»100 million between December 26 and December 31 due t o increases i n valuation r e serves, as indicated by weekly reporting data* Note$ Figures f o r December 1956 are estimates and subject to change. Preliminary data for December w i l l be shown in the Board's statement, "Assets and L i a b i l i t i e s http://fraser.stlouisfed.org/ of All Banks in the United States, available a t the end of January* Federal Reserve Bank of St. Louis v • - 3 - L.43 Table 2 Changes in Commercial and I n d u s t r i a l Loans 1/ (In millions of d o l l a r s ) Business of Borrower 1956 1956 1955 Nov.29, Dec. 1 , June 28, 1955 June 30, Dec.26 Dec. 28 Dec. 26 Dec. 28 r ending t)6c©26j Dec. 28, 1956 1955 """ Food processors Commodity dealers Trade concerns Total +168 +102 - 68 + r 62 7 a n +822 +737 +189 +177CS +1*80 +1*69 +327 +17273 +220 +3#. +360 +1Z3T Sales finance +503 +1*82 + 85 + +701* -237 +1,293 All other » t o t a l Metals and metal products T e x t i l e s , apparel and leather Petroleum, coal, e t c . Other manufacturing and mining Public u t i l i t i e s Construction All other types of business +227 +10 +209 +696 r75 +1,069 +241* <•3,831 1-1,287 *2,593 —+1*01 + U - 51 + 2 + 56 - +1*35 £> + 71 +208 +233 +859 +291 +521 - 9 +121 - 7 * 8 •* 65 + 5 + 70 +335 -.61* + 63 + 27 +106 +1*39 +700 - 10 +216 +1*11 +21*0 + 20 + 58 +17U +370 +323 +513 +931 — lit +700 - 1*1 +2,702 -21*6 +3,050 2/3/+156 4*, 826 -127 3A/-23 +917 +659 +2,156 2/3/+3,206 4*, 699 Total - C l a s s i f i e d Unclassified Total change - 60 + 8 4*73 Tm. +1,307 3/L/+l*,281* 1/ Prior t o week ending January 11, 1956, included changes i n a g r i c u l t u r a l loans* 2/ CCC c e r t i f i c a t e s of I n t e r e s t may have declined $300 million* 3/ Includes increase of $318 million in October 1955 t o correct 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 revised* Most of the m i s c l a s s i f i c a t i o n probably occurred i n 1955* 1*/ CCC c e r t i f i c a t e s of i n t e r e s t may have declined $800 million* Note* C l a s s i f i e d data are f o r a sample of about 210 banks reporting changes i n t h e i r l a r g e r loans; 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 reporting member banks and nearly 70 per cent of those of a l l commercial banks* Not f o r publication - 4 - L.43 July-October period and greater in November and December than a year e a r l i e r . Loans increased about $8 b i l l i o n in 1956, considerably less than the $11,5 record growth in 1955, but more than in any other year since 1950. U, S. Government security holdings declined $3 b i l l i o n in 1&6, considerably l e s s than half as much as a year e a r l i e r . Holdings of other s e c u r i t i e s , however, also declined $500 million, the f i r s t year since the early f o r t i e s that these holdings have not increased. During the year ending November 1956, the l a t e s t date f o r which data are available by class of bank, almost 60 per cent of the t o t a l credit growth a t a l l member banks was a t country banks, and p r a c t i c a l l y a l l the remainder a t reserve c i t y banks, as shown in Table 3« Credit a t nonmember banks appears t o have grown a t about the same rate as a t country banks. Loans continued t o increase more a t city banks than a t country banks, as in 1955, but r a t e s of loan growth dropped a t a l l classes of banks except central reserve city banks in Chicago, The country-bank proportion of t o t a l loan growth remained about constant in the two years, somewhat over one-fourth, U, S, Government security holdings declined much less a t a l l classes of banks than in the previous year. Country banks increased t h e i r holdings of other s e c u r i t i e s , whereas a l l other classes of banks reduced t h e i r s . Cash a s s e t s of a l l member banks--reserve balances, interbank balances, and cash in vault--rose by $700 million in the year ending November 1956, whereas they had declined $900 million in the previous year. Most of the growth was a t country banks where the increase exceeded the previous y e a r ' s decline. Business loans a t a l l commercial banks increased by nearly $5.5 b i l l i o n in 1956, somewhat less than the record growth in 1955, but more than in any other year. Business loans a t weekly reporting banks Increased $400 million less than in 1955 ( a f t e r adjustment f o r changes in CCC c e r t i f i c a t e s of i n t e r e s t included in 1955 figures) and those a t banks outside leading c i t i e s are assumed t o have increased about $200 million l e s s . Loans t o metals manufacturers, which increased sharply during the f i r s t half of 1956 and then showed l i t t l e f u r t h e r change on balance, accounted f o r more than one-quarter of t o t a l business borrowing a t c i t y banks during the year. Loans t o food processors and commodity dealers also increased substantially In 1956, declining less than usual during the f i r s t half of the year and increasing more than usual during the second h a l f . Loans t o petroleum concerns and public u t i l i t i e s also rose substantially, while loans t o sales finance companies declined, compared with sharp growth in 1955. Real estate one-quarter less than annual growth f o r the $1.6 b i l l i o n , about a http://fraser.stlouisfed.org/ Not f o r Federal Reserve Bank of St. Louis publication loans increased $1,8 b i l l i o n in 1956, in 1955, but about equal t o the average post-war period. Consumer loans rose t h i r d less than in 1955, but about as Hot f o r publication - 5 * Table 3 - / L.43 Changes In Selected Assets and L i a b i l i t i e s of All Member Banks, by Class of Bank Nov. 30, 1955 t o Nov. 28, 1956 and Nov, 24, I95U t o Nov. 30, 1955 All member Item Loans and investments l / Central reserve Be serve Country Nev York Chicago city Nov. 30, 1955—Nov., 28, 1956 In millions of dollars + 3,500 + 51 + 117 + 1,298 + 2,034 + 7,347 - 3,340 507 + 1,423 978 394 + 562 - 348 - 97 + 3,240 - 1,740 202 + 2,122 274 + 186 Cash assets 2/ + 739 - 175 - + + Total deposits 3/ + 3,433 - 100 - 133 Loans l / U. S. Government s e c u r i t i e s Other s e c u r i t i e s 84 292 + 1,257 706 + 2,409 In per cesnt Loans and investments l / + 2.6 + 0.2 + 1.9 + 2.5 + 3.9 + 10.7 - 6.6 - 3.7 + 10.3 - 14.9 - 18.5 + 18.4 - 14.3 - 13.8 + 11.7 - 9.2 - 4.0 + 8.8 - 1.2 + 3.2 Cash assets 2/ + 2.7 - 3.9 - 6.3 + 2.8 + 6,6 Total deposits 3/ + - 0.4 - 1.9 + 2.2 + 4,1 Loans l / U, S. Government s e c u r i t i e s Other s e c u r i t i e s 2.3 Loans and investments 1/ + 1,957 Loans l / U. S. Government s e c u r i t i e s Other s e c u r i t i e s +10,090 - 8,386 + ' 253 - 1,075 - 233 + 1,293 + 1,972 1« + u> ro ro 0 ro ir-ovu? Nov. 24. 1954--Nov. 30, 1955 In millions of dollars + 478 - 820 + 109 + 4,385 - 3,094 + 2 + 2,942 - 1,386 + 4l6 142 - 539 + 1,127 Cash assets 2 / - 921 - 220 + 13 Total deposits 3/ + 492 899 - 275 - + 572 In per ce?nt + 1.5 - 4.6 3*6 + 2.6 + 3.9 + 17.2 - 14.2 + 1.9 + 19.8 - 32.O + 18.5 +18.8 -14.1 + 13.9 - 11.4 - 25.2 + 18,4 Cash a s s e t s 2/ - 3.3 - 4.7 + 1.0 Total deposits 3/ + 0.3 - 3.6 - Loans and investments l / Loans l / U. S. Government s e c u r i t i e s Other s e c u r i t i e s Digitized forl /FRASER Excludes loans t o banks. http://fraser.stlouisfed.org/ 3/ Adjusted t o exclude cash Federal Reserve Bank of St. Louis 3,9 - 5.8 - 1.3 - 5.1 + 1.0 + 2,0 4/ + 7.7 2/ -—r, — — items in process of collection, 4/ Less than 0.05%. - 6 L.43 much as in other recent years. Agricultural loans were about unchanged; a substantial decline in 1955 had r e f l e c t e d largely redemption of CCC c e r t i f i c a t e s of i n t e r e s t . Security loans declined about $700 million over the year> as year-end expansion did not o f f s e t steady declines throughout the year. "Other loans" increased less than in 1955, Deposits and currency. Preliminary estimates indicate that demand deposits and currency held by businesses and individuals may have increased $3 b i l l i o n in December, about $300 million more than the usual seasonal r i s e , as shown in Table 4. This was about the same as tl%e seasonally adjusted increase f o r December l a s t year, but t h i s y e a r ' s growth'was mainly in currency whereas l a s t year, i t was in deposits. U. S. Government deposits declined $1 b i l l i o n during the November 29- December 26, 1956, period. Time deposits increased substantially a t both commercial and mutual savings banks as is usual in December, Over the year 1956, privately-held demand deposits and currency rose over $1 b i l l i o n , or about 1 per cent> compared with about 3 per cent in each of the two previous years. Most of the 1956 growth occurred during the f i r s t half year. Time deposits probably increased about $500 million more than in 1955, or about 4-1/2 per cent compared with 4 per cent. The increased r a t e of expansion occurred only a t commercial banks; a t mutual savings banks, the rate of increase declined s l i g h t l y . U. 8; Government deposits showed l i t t l e change in 1956, On balance, t o t a l deposits and currency increased around $4.5 b i l l i o n in 1956 compared with $6.3 b i l l i o n in 1955, Credit expansion provided approximately the same volume of funds in both years, while foreign operations provided more funds in 1956 than In 1955. Capital accounts a t commercial and mutual savings banks, however, appear t o have increased somewhat more than in 1955, whereas Reserve Bank f l o a t , which had increased substantially In 1955, showed l i t t l e f u r t h e r r i s e between the end of 1955 and the end of 1956. The seasonally adjusted annual r a t e of turnover of demand deposits a t banks in leading centers outside New York City rose f u r t h e r in November to 24,7. Turnover had declined somewhat during the l a t e summer and early f a l l but rose again in October and November averaging almost 8 per cent above the level in these same two months l a s t year. At banks in New York City, turnover in October and November averaged 4 per cent above l a s t y e a r ' s level. Bank reserves. Net borrowed reserves of a l l member banks declined f u r t h e r in December averaging around $30 million compared with $155 million in November, as shown in Table 5« Borrowings declined t o $690 million and excess reserves increased t o $660 million. Net borrowed reserves and borrowings were at t h e i r lowest levels since mid-1955 and excess reserves were a t Not f o r publication 7 - L*43 Table U Estimated Changes in Deposits and Currency (In b i l l i o n s of dollars) Year ending* 1^5" W "X55T 15eCT Dec.26, July 1 ~ July 1 Dec, 1 Nov, 29" 1955 Dec, 31 1956 Dec, 28 Dec* 26 Dec, 31 E E Item Seasonally adjusted data 1/ Demand deposits adjusted Currency outside banks Total - 0,1 I Unadjusted data 1/ h/ Demand deposits adjusted Currency outside banks Total Time deposits U. S e Government deposits u / Total Factors a f f e c t i n g deposits and currency Bank loans and investments other than U, 3, Govt# sec* 3 / Commercial Mutual savings Bank holdings of U# S# Government s e c u r i t i e s t Federal Reserve Commercial Mutual saving and other Gold stock and foreign deposits a t F. R* Banks Other f a c t o r s E + * + * 2.5 0,5 3.0 0,9 w 1,0 + o,U + 3*0 H i + 1,0 — 0,6 T-%9 + 0,8 + 3,0 7TO • 0,9 * o,5 tt:h • 6,0 * 0,2 + 6,7 + 0,9 + 0,8 + 3,1 + O.it + 1,2 + 1,2 + 3«U - 0.1 + O.h TT35 - 1,1* + 0.2 + 0*6 + 3.1 — 0,6 (signs indicate e f f e c t on,deposits and currency) + L.3 + 0.2 + 0.5 2/ •To.2 + 0.2 + 1.2 + 0.7 +157F + 2.7 T-I75 + 0,2 + 2.0 2/ - o.U 2/ + 0.1 * 0.8 - 1.1 + 8.U + 9.8 + 1,1 + 2,6 S o + 2,3 * 0.8 - 3.5 - 8.1 - 3.0 - 0.7 - 7.U - 0,5 + 0.3 - 1,9 - 0,2 +T2 + 17? - 1,7 - 0.3 -K.i + 0.1 Seasonally adjusted data are f o r l a s t Wednesday throughout; unadjusted data are r l a s t Wednesday except in case of June and December c a l l dates# when available. 2/ Less than $50 million# y Total includes foreign loans on gold and holdings of bankers 1 acceptances at the f e d e r a l Reserve; changes i n these items are generally r e l a t i v e l y small. In addition even if there were no changes in these items, changes at commercial and mutual savings banks would not necessarily add exactly to t o t a l change, which i s "net"$ because of bookkeeping discrepancies among various banking records* h / I t i s l i k e l y t h a t demand deposits adjusted and currency outside banks w i l l i n crease SUOO million on balance between December 26 and December 31# Time deposits may increase by $200 million and U. S. Government deposits declined $500 million. Notei Data f o r December 1956 are estimates and subject t o change. Preliminary data f o r December w i l l be shown i n the Board* s statement, "Assets and l i a b i l i t i e s of All Banks i n the United States" available a t the end of January# .Not f o r publication - 8 - L.43 Table 5 Free Reserves (Excess reserves minus member bank borrowingsj based on average of daily figures; in millions of dollars) Period T 3 member New York - - 26 550 3 - 131* - U3 - Ill* - 137 - 67 - 83 - 151 - 167 - U09 1*01* - - 353 - 336 - 298 1955? March June September October November December 121 285 360 1*91 21*5 - 1956$ January February March April May June July August September October November December 255 266 - 198 . 138 Quarterly averages 1955J F i r s t Second Third Fourth 1956: F i r s t Second Third Fourth 1956* Nov. 28 Dec# 5 12 19 26 Jan* 2 533 501* 195 139 339 213 195 151* 29 2 127 150 265 161 - 171* 167 88 33 108 158 201* 192 - 91 - 83 103 256 262 153 Ill 1*8 - 72 - 93 - Ill* - 211* - 1U0 29 1 112 192 75 1*11 230 126 170 96 157 166 7 72 132 93 71 139 127 31* 111 67 11*5 121 251* 158 127 365 310 - 81* - 1*16 - 501 - 338 - h29 - 1*68 - 356 - 31*1* - 382 - 296 — 2lt6 - 193 - 20U 377 365 31*1* 31*1 338 379 310 319 321* 205 305 360 271* 380 358 393 351 99 150 323 1*18 1*57 371* 375 31*1 11*7 175 71 113 329 1*18 31*1 21U 336 278 338 367 123 52 100 165 223 216 131* 11*5 318 1*08 6h 67 95 80 80 95 Notes Data f o r second half of December and January are preliminary. Not f o r publication Country — 16 1*59 1*08 Reserve City 50 1951* < December 168 Chicago 237 295 371* 1*1*1 396 L.U3 - 9 - t h e i r highest level since early 1955* In December, a l l the reduction in net borrowed reserves occurred a t central reserve city banks in New York and Chicago; a t other banks, reserve positions tightened s l i g h t l y . The e f f e c t i v e trading rate f o r Federal funds in December, however, seldom dropped below 3 per cent. More reserves were supplied in December through System purchases of U. S. Government s e c u r i t i e s , largely outright, and through expansion in Reserve Bank f l o a t than were absorbed principally through currency outflows and increases in required reserves, as shown in Table 6. Currency outflows and growth in required reserves were somewhat larger than in December 1955# while expansion in f l o a t vas about the same. Although System purchases of U. S. Government securities were heavier in December 1956 than in December 1955# the reduction in net borrowed reserves was about $125 million l e s s . Over the year 1956, banks reduced t h e i r borrowings and added to excess reserves. More reserves were supplied t o banks largely through foreign transactions, increases in Reserve Bank f l o a t , and System purchases of U. S. Government s e c u r i t i e s than were absorbed through currency outflows and increases In required reserves. In 1955; borrowings had increased substantially and excess reserves had declined. Member bank reserve positions, which had been brought under increasing r e s t r a i n t during 1955, tightened somewhat f u r t h e r during the early months of 1956, as shown in Table 5. Member bank indebtedness rose from an average level of $840 million in December 1955 to over $1 b i l l i o n in April and May. As is usual early in the year, the System sold U. S. Government s e c u r i t i e s t o absorb reserves being released through reductions in deposits and a currency inflow. System holdings of U. S. Government securl t i e s declined $1,505 million between the end of the year and May 23. Subsequently, in May, June, and early July, the System purchased about $665 million of U. S. Government s e c u r i t i e s . Reserve Bank f l o a t also increased to an unusually high l e v e l during t h i s period, and net borrowed reserves dropped t o $140 million in July coraparod with over $500 million in the spring. In August, net borrowed reserves rose temporarily following System sales of securities and reductions in Reserve Bank f l o a t to more normal levels, but they declined again in September. During the l a s t quarter of the year, net borrowed reserves dropped t o an average level of $125 million. System holdings of U, S, Government s e c u r i t i e s increased $1,235 million and, in addition, f l o a t and other factors provided more than enough reserves to meet drains from currency outflows and increases in required reserves. Not for publication - - 10 - L.43 Table 6 Changes in Member Bank Reserves, with Relevant Factors (Monthly average of daily f i g u r e s ; in millions of dollars) 1 July - December Year end- December 5 * Item 1956 1955 1956 1955 1956 1955 + 366 + 338 + 602 + 525 + 295 - + 69 + 297 + 70 + 268 + 85 + 517 + 25 + 5oo + 65 + 230 - 110 + 71 [ember bank reserve balances Total Excess reserves 1/ Required reserves 1 / (signs indicate e f f e c t on reserves) Principal f a c t o r s Currency in circulation Gold stock and foreign accounts Treasury operations Federal Reserve f l o a t Other factors Federal Reserve loans and investments: U« S« Govt, s e c u r i t i e s Outright Repurchase agreements Acceptances Discounts and advances$ To member banks To others 1/ - 577 - k7k -1,239 -1,215 - 510 - 516 - 32 + k + 333 - 87 - 63 + 105 + 33b + b + 90 + 59 + 127 + 50 - 50 + 511 73 + + + + + + - + 7bl TJJJf + 19U + 23 + 605 +1,21*3 *x;tii2 + 231 + 33 +l,00k + 72? + 282 + 3 + 163 +"186 - 17 + 31 + 255 + 19 - 56 + 17 - 177 1 •• + 1 + lj.38 62 - 151 + 17 + 593 - 160 + 250 + 2 Data f o r December 1956 are preliminary* Not for publication 39 81 17 3h 3U0 32 2UU 132 U2 63 397 83 L.43 - 11 Table 7 Changes in Member Bank Reserves, with Relevant Factors (Monthly average of daily figures; in millions of dollars) Item * Member bank reserve balances Tot,6.?. • • 1956 1955 1st. 2nd. 4th. 1st. 4th. 2nd, *3rd. 3rd. quarter quarter quarter quarter quarter quarter quarter quarter Excess l / Required l / - 316 + 9 + 91 + 511 - 644 + 80 7 - 309 - 10 + 19 + 5 + 86 + 80 + 430 - 118 - 526 - 16 + 96 0 ^ • Currency Gold stock and foreign accounts Treasury operations Federal Reserve float Other factors Federal Reserve loans and investments : U. S. Govt, sec.: Outright Repurchase Acceptances Discounts: To member banks To others 2 6 + 31 + 498 +1,010 - 280 - 267 - 972 + 959 - 260 - 370 - 845 + 132 - 99 + 118 + 71 + 44 - 22 + 46 + - 251 83 - 91 + 364 + 32 - 178 66 + 128 - 402 - 21 + 219 + 103 + 112 - + 435 - 62 - 188 + 74 + 46 98 56 + 465 - 17 -1.080 - 8 69 + 36 - 211 - 37 4 + 2 + 206 + 209 3 + 1 +1,037 -1,298 - 21 8 + 803 -1,284 14 - 13 + 234 + 16 + 32 --- + 111 + 72 + 39 + 2 + 154 - 224 1 + 1 + 23 1 + 62 39 + 447 - 40 mmm l / Data for December 1956 are preliminary. Not f o r •publication + (sigr is indiestte effec:t on reelerves) Principal f a c t o r s ^ + 4 8 + 81 - 104 18 - 108 + 217 - 58 + - + 893 + 650 + 243 1 - 10 22 - 12 - L.43 Loans and Investments at All Commercial Banks (In b i l l i o n s of dollars) Loans U, S, Other and Gov't* secur- Total Real invest* secure i t i e s loans Busiaeas estate ments i t i e s Date Dec* 31 31 31 31 31 116,2 llk.2 120,1 126,6 132.5 iUi.5 115*5 69»2 62,6 67*0 62.0 61*5 63.3 63.it 9,0 9.2 10.2 12.k 13.3 lk.l lk. 7 1951; Mar, 31 June 30 Sept,29 Dec, 31 1U2.5 11*6,2 150,1 155,7 60,7 63.5 67.3 69*0 1955* Jan. 26 Feb, 23 Mar, 30 Apr. 27 May 25 June 30 July 27 Aug, 31 Sept*28 155.5 153.8 I52.li 15k.k 151.5 151.8 155.8 155.6 I56.lt Oct, 26 Nov. 30 Dec. 31 I9h7* I9hds 19h9i 1950s 1951* 1952? 1953* Dec, 31 Dec, 31 Dec. Dec, Dac. Dec. 1956; Jan. 25 Feb. 29 Mar* 28 Apr. 25 May 30 June 30 July 25p Aug. 29p Sept*26p Oct. 31p Nov. 28p Dec* 26e Con- All Secur i t y Farm sumer1 other 1/ 1 / k2,9 52.2 57.6 6k* 0 67.k 18,3 18,9 17*1 21.9 25.9 27,9 27.2 9.k 10*8 11.5 13.5 lk.6 15.7 16.7 2.1 2.3 2.6 2.9 2.6 3.2 3.6 1.7 3.8 2.9 k.8 3.1 5.8 2.9 7,k 3.k 7.5 3.9 5>.k 5.0 10.9 2.9 3.1 3,k k.2 k.5 k.9 5.1 15.1 15=5 16.0 16,3 66,8 67.2 66.8 70«k 26,7 26*1 26*1 26.9 16.8 17.2 17.8 18,k 3.0 3.7 3.8 k.5 5.8 5*1 3*9 5.2 10.6 10.8 10,8 10.9 5.0 5.2 5.k 5.6 1 69.0 66.8 6k,2 65*6 65,0 63.3 63,7 62,5 62.0 16*7 16,8 17.0 17.0 16c 7 16.8 16.7 16,9 16.9 69.8 70*2 71,2 71.8 72«8 7k.8 75,k 76.2 77.5 26,6 26,8 27.k 27.6 28,0 28„9 29.1 29.9 30.5 18.6 18.8 19*0 19.2 19*5 19.8 20*0 20.3 20.6 k.o 3.9 kel k.3 k.3 k.5 k.5 k.2 k.2 5.2 5.2 k.9 k.k k.k k.k k.2 3.9 3.9 10.9 11.0 11.2 11.5 11,7 12.1 12,3 12.5 12*7 5.6 5.7 5*8 5.9 6.1 6.2 6.3 6.k 6.6 158.1 158.2 160.3 62.9 61.k 61.6 16.8 16.6 16.7 78.k 80.2 82.0. 32.3 33.2 ?20,5 20.7 20.8 k.k k.5 5.0 k.O 18*9 6,5 k.3 13.0 6.5 k.5 13.2 6.5 158,3 157*1 158*5 158,7 158.a 159,3 158*3 159*8 160*7 161,3 162.6 I6k»9 60.9 59.2 58.6 58*2 57.3 56*6 56.2 57.2 57.0 57.k 58.1 58,6 16.5 16.6 16.6 16,6 16„li 16.5 16.3 I6*k 16*5 16,3 16*3 16*2 80.9 81,2 83.3 83.9 8k. 7 86.2 85,8 86*3 87*2 87*6 88.3 90*1 32.7 32*9 3k, 5 3k. 8 3k. 8 36*1 35*8 36*k 36.9 37.1 37.7 38.7 20.9 21.0 21.2 21,k 21.6 21.8 21.9 22.1 22.3 22.k 22.5 22.6 k.6 k*5 k.5 k.k k.5 k.k k.3 k.O k.l k.l k.O k.3 k.k k.5 k.k k.3 k.k k.3 k.2 k.O k.2 k.2 k.k k*5 37.9 kZch 13*3 13.3 13.5 13*7 13*9 lk.3 lk.k lk.k lk*5 lk.5 lk.5 lk.8 1/ Revised series* 2/ Level of business loans increased by, and real estate loans decreased by $300 million at the end of October 1955 to correct c l a s s i f i c a t i o n errors* No back figures revised; most of the misclassification probably occurred during 1955* Note: Data exclude interbank loans* Total loans #re a f t e r and types of loans before deductions f o r valuation reserves. Consumer and "other loans" are partly estimated f o r a l l dates* Other data are p a r t l y estimated on a l l but June and December dates* Banking Section, Board of Governors http://fraser.stlouisfed.org/ Not f o r publication Federal Reserve Bank of St. Louis January 9# 1957 6*k 6.k 6*5 6,6 6.7 6.7 6.6 6.7 6.6 6,7 6.7 6,7
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