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flEDERAL RESERVE B A N K KANSAS CITY of Not for publication J J N 23 — Research 19o9 Likmrv June 18, 1969. — BANKING AND MONETARY DEVELOPMENTS IN MAY 1969 Summary. Commercial bank credit increased moderately in May-much less than in April and only slightly more than the sharply reduced average monthly growth over the first quarter of the year. Continued strong loan expansion, reflecting growth in all major categories, was offset in part by a large reduction in holdings of U.S. Government securities. Holdings of municipal and Federal agency securities also declined slightly further. The money supply fell somewhat in May following a substantial increase in April associated in part with special factors around the Easter weekend. U.S. Government deposits increased slightly further. Time and savings deposits at commercial banks declined further in May as attrition of large negotiable CD's continued heavy and consumer-type time and savings deposits rose much less than usual. Net borrowed reserves rose further as substantial increases in member bank borrowings were offset only in small part by an increase in excess reserves. Changes in Commercial Bank Credit Money Supply and Time Deposits (Seasonally Adjusted) 1967 Annual rate (per cent) 1968 First Second Fourth First Half Half Qtr. Qtr. 1969 Jan. May May Year Year 11.6 11.0 6.5 15.0 10.7 2.3 U.S. Gov't, sec. 11.4 3.0 2.3 3.6 -15.6 -26.7 Other securities 26.1 16.4 8.1 23.8 26.9 2.2 -3.3 Total loans 8.3 11.6 7.2 15.5 13.1 9.4 14.4 11.2 12.4 Business loans 9.8 11.1 7.6 14.1 15.2 16.3 16.8 16.8 16.6 Money supply 6.4 6.5 6.7 6.1 7.6 1.9 10.5 2.7 -2.5 16.1 11.3 5.1 17.1 15.7 -6.5 -1.2 -4.9 -4.2 Total loans and investments Time and savings deposits at all commercial banks April 9.6 3.9 2.8 4.2 -21.5 -33.3 — — Bank credit. Total loans and investments at all commercial banks increased $900 million in May following a $3.1 billion expansion in April (associated mainly with a Treasury financing and corporate tax payments) and -3.3 -2- a $700 million average monthly growth over the first quarter of the year. In May, as well as over the first five months of 1969, credit (not adjusted for seasonal) declined much more than usual at weekly reporting banks but rose by about the usual amount at nonweekly reporting banks. Total loans increased $2.7 billion in May—less rapidly than in April but somewhat faster than earlier in the year. Business borrowing continued heavy and security loans and loans to nonbank financial institutions also rose. Growth in real estate loans slowed somewhat while that in consumer loans continued at about the reduced pace of the earlier months of 1969. Loan growth in May was concentrated at small banks where the expansion was unusually rapid. On balance, over the first five months of the year, growth at these nonweekly reporting banks was considerably larger than in the January-May period of any other recent year. At weekly reporting banks loans were unchanged over the five months compared with declines in the corresponding periods of 1968 and 1967 but with fairly substantial increases in 1966 and 1965. This year, rapid growth in nonfinaneial loans was offset by a large decline in security and nonbank financial loans. Loans to businesses increased $1.4 billion in May, or at approximately the same substantial pace that had prevailed since the fall of 1968. As in April, increases continued sizable at both New York and other weekly reporting banks; in previous months most of the growth had been at banks outside New York City. Borrowing was fairly widespread among industry categories in May but was especially strong by food processors, machinery and chemicals manufacturers, and service industries. While business borrowing over past months probably reflected in part financing of inventory accumulation, some of the increases in recent weeks may have been associated with a shift of demand from the commercial paper market--and possibly some anticipatory borrowing--as rates on commercial paper rose above the prime rate prior to the increase in that rate to 8-1/2 per cent in early June. Holdings of U.S. Government securities declined $1.6 billion in May. While the reduction was unusually sharp at large banks, it was substantial at small banks as well. The reduction reflected in part attrition of maturing issues involved in the Treasury's May 15 refunding operations. In addition, at large banks, bill sales continued substantial over the month. Bank holdings of municipal and agency issues--which had begun to decline in April following sharply reduced expansion earlier in the year— dropped slightly further in May. Large banks sold more short-term municipals than usual in May and also sold longer-term municipals in contrast with substantial purchases in corresponding weeks of other recent years. At these banks, reductions in municipal and agency portfolios were large over the entire January-May period. At small banks, however, acquisitions were fairly substantial through the first quarter of the year but then tapered off in April and May. Money supply and time deposits. The money supply declined $400 million in May following a sharp April expansion, associated in part with special technical factors around the Easter holiday weekend and preparations -3for tax payments. Over the January-May period, the average monthly increase in the money stock was about one-third that in the fourth quarter of 1968. Time and savings deposits at all commercial banks declined $700 million in May following a slight reduction over the March-April period and very sharp declines in January and February. Attrition of large negotiable CD's continued heavy. Consumer-type time and savings deposits at large commercial banks declined slightly further in May after dropping sharply in April following the quarterly interest crediting period. Reductions at banks in New York City were offset in large part by moderate--but less than usual--expansion at banks outside New York City. Growth of time and savings deposits at country banks was also considerably smaller than in the corresponding weeks of other recent years. Bank reserves. Net borrowed reserves of member banks averaged about $1,120 million over the four weeks ending May 28 compared with $840 million in April. A substantial increase in member bank borrowings was offset only in small part by an increase in excess reserves. Banking Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System. L.4.3-EXHIBIT A, PARTI LOANS AND INVESTMENTS AT ALL COMMERCIAL BANKS Last Wednesday of month, seasonally adjusted Billions of dollars 400 TOTAL LOANS AND INVESTMENTS 300 LOANS 200 80 OTHER SECURITIES U.S. GOVT. SECURITIES 40 D 1966 1967 M J 1968 S D M J 1969 S D Chart revised beginning March 1969. Exhibit A - Part II Loans and Investments at All Commercial Banks (Seasonally Adjusted) Date Total Loans ( I n b i l l i o n s U.S. Gov11. securities of d o l l a r s Other securities ) 1962—Dec. 1963--Dec. 1964--Dec. 1965--Dec. 1966--Dec. 1967--Dec. 31 2/ 31 2/ 31 31 31 30 227.9 246.2 267.2 294.4 310.5 3/ 346.5 134.0 149.6 167.7 192.6 208.2 3/ 225.4 64.6 61.7 60.7 57.1 53.6 59.7 29.2 35.0 38.7 44.8 48.7 61.4 1968—Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 31 28 27 24 29 30 31 28 25 30 r 27 r 31 r 349.9 353.9 352.5 355.2 357.3 357.8 365.9 370.4 374.6 379.4 381.6 384.6 227.5 229.2 229.0 231 .4 232.6 233.5 238.4 241.1 243.6 246.7 250.4 251.6 60.0 62.0 59.9 60.3 61.0 60.4 63.1 63.9 64.0 64.2 61.0 61.5 62.4 62.7 63.6 63.4 63.6 63.9 64.4 65.5 67.0 68.5 70.2 71.5 1969—Jan. Feb. Mar. Apr. May 29 26 26 30 28 385.9 387.9 386.8 389.9 390.8 253.7 258.4 257.5 260.6 263.3 60.8 58.1 57.4 57.6 56.0 71.4 71.5 71.9 71.7 71.5 r r r p p 1/ Adjusted to exclude interbank loans. p - Preliminary. r - Revised. 2/ Estimated as of December 31. 3/ Beginning June 9, 1966, loan data exclude $1.1 billion of balances accumulated for payment of personal loans. Beginning June 30, 1966 total loans exclude, and other securities include, about $1 billion of participation certificates. 1.4.3-EXHIBITS, P a r t i LOANS AT ALL COMMERCIAL BANKS Last Wednesday of m o n t h , seasonally adjusted Billions of dollars H 100 BUSINESS 1 90 80 70 60 REAL ESTATE 50 CONSUMER 40 30 15 SECURITY D 1966 1967 M J 1968 S D M J 1969 S D Chart revised beginning March 1969. Exhibit B - Part II Loans at All Commercial Banks Seasonally Adjusted Date Business Consumer Real Estate (In b i l l i o n s oi Security d o l l a r ' s ) 1962--Dec. 1963—Dec. 1964--Dec. 1965—Dec. 1966—Dec. 1967—Dec . 31 1/ 31 1/ 31 31 31 31 47.6 52.0 58.4 69.4 78.6 86.3 34.2 39.1 43.6 49.2 53.8 58.4 23.7 27.2 31.1 35.6 38.2 40.0 6.1 6.9 7.4 7.4 7.9 9.2 1968—Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 31 28 27 24 29 30 31 28 25 30 27 31 r r r r r r 86.6 87.1 87.8 88.8 89.2 89.6 90.8 91.7 92.4 93.4 95.1 95.9 58.9 59.5 60.1 60.6 61.1 61.4 61.8 62.3 62.8 63.6 64.3 65.0 40.4 40.8 41.0 41.4 41.6 41.8 42.2 42.7 43.3 44.0 44.3 44.9 10.1 10.2 8.7 8.5 8.5 8.2 10.7 11.4 11.6 11.2 11.0 10.4 1969—Jan. Feb. Mar Apr. May 29 26 26 30 28 r r r p p 97.7 99.1 99.8 101.2 102.6 65.7 66.4 67.1 67.7 68.1 45.3 45.5 45.8 46.2 46.6 9.4 10.4 8.8 8.9 9.3 1/ http://fraser.stlouisfed.org/ w • Reserve-Bank # of«r Federal St. Louis r r - Revised p - Preliminary Estimated as of December 31. These data are not for publication. # e e # e * e e e # # # # # # # e # Exhibit C Changes in Loans and Investments at All Commercial Banks, Seasonally Adjusted (In billions of dollars) 19 6 8 Item Apr . May June July Aug. 1 9 i 5 9 Sept. Oct. Nov. Dec . Jan. Feb. Mar . Apr .p May p Loans and Investments 2/ + 2.7 + 2.1 + 0 .5 + 8 .1 + 4.5 + 4..2 + 4.,8 + 2.2 + 3.0 + 1.3 + 2.0 1.1 + 3.1 + 0.9 U. S. Gov't, securities + 0.4 + 0.7 - 0 .6 + 2 .7 + 0.8 + 0..1 ! + 0.,2 | - 3.2 + 0.5 - 0.7 - 2.7 - 0.7 + 0.2 - 1.6 Other securities - 0.2 + 0.2 + 0 .3 + 0 .6 + 1.1 + 1.,5 + 1.,5 + 1.7 + 1. 3 1/ + 0.5 - 0.2 - 0.2 Loans 2f + 2.4 + 1.2 + 0 .9 + 4 .9 + 2.7 + 2.,5 + 3 .1 + 3.7 + 1. 2 + 2.1 + 4.7 - 0.9 + 3.1 + 2.7 Business + 1.0 + 0.4 + 0 .4 + 1 .2 + 0.9 + 0.,7 + 1..0 + 1.7 + 0. 8 + 1.8 + 1.4 + 0.7 + 1.4 + 1.4 Real estate + 0.5 + 0.5 + 0 .3 + 0 .4 + 0.5 + 0,,5 + 0,,8 + 0.7 + 0. 7 + 0.7 + 0.7 + 0.7 + 0.6 + 0.4 Consumer + 0.3 + 0.2 + 0.2 + 0 .4 + 0.5 + 0,.6 + 0..7 + 0.3 + 0. 6 + 0.4 + 0.2 + 0.3 r+ 0.4 + 0.4 Security - 0.2 - 0.3 + 2 .5 + 0.6 + 0,.2 - 0.2 - 0. 5 - 1.0 + 1.0 - 1.6 + 0.1 + 0.4 Nonbank financial - 0.3 - 0 .1 + 0.2 + 0..6 + 0.3 + 0.,1 + 0.5 - 0.7 + 0.8 + 0.3 Agriculture 4- 0.1 + 0 .3 + 0 .1 1/ + 0,.1 - 0,.1 - 0.2 + 0.,1 - 0.1 + 0.3 - 0.1 + 0.2 V All other + 0.4 - 0.1 1/ + 0 .4 1/ + 0.4 + 0,.5 + 1.1 - 0.6 + 0.3 + 0.6 - 0.2 r - 0.4 - 0.2 Total loans excluding security 3/ + 2.6 + 1.2 + 1 .2 + 2 .4 + 2.1 + 2..3 + 3,.5 + 3.9 + 1.7 + 3.1 + 3.7 + 0.7 + 3.0 + 2.3 Total loans excluding security and nonbank financial 3/ + 2.3 + 1.0 + 1,.2 + 2 .5 + 1.9 + 2,.3 + 2,.9 + 3.6 + 1.6 + 3.1 + 3.2 1.4 + 2.2 + 2.0 1/ 3/ 1/ + 0.2 1/ 1/ V 0.4 - V 1/ i • Less than $50 million. 2/ Adjusted to exclude interbank loans. At large banks on a last-Wednesday basis, bankers 1 acceptances declined $139 million in May 1969, compared with declines of $55 million in May 1968, and $50 million in May 1967. Individual Loan Categories Are Not Available For Publication Exhibit D Changes in Loans and Investments at All Commercial Banks, at Weekly Reporting Banks, and at Other Banks, Not Seasonally Adjusted (In billions of dollars) Item Last Wednesday of April to last Wednesday of Mav 1969 1968 1967 1966 1965 1964 1963 All commercial banks Total loans U. S. Gov't, securities Other securities Total +1.4 -2.7 -0.6 -1.9 +0.6 +0.5 -0.3 +0.7 +0.7 -0.4 +0.7 +1.1 +1.9 -1.9 +0.6 +0.7 +2.6 -1.1 -0.3 +1.2 +2.0 -1.0 +0.9 +2.0 -1.0 +0.3 +1.3 All Large Banks 3/ Total loans U. S. Gov't, securities Other securities Total -0.5 -1.7 -0.7 -2.9 1/ +0.4 -0.5 -0.1 -0.6 +0.1 +0.2 -0.3 +0.5 -1.3 +0.3 -0.5 +1.3 -0.5 -0.4 +0.4 +1.0 -0.4 -0.2 +0.4 +1.0 -0.6 +0.3 +0.7 Other banks 3/ Total loans U. S. Gov't, securities Other securities Total +1.9 -1.0 +0.1 +1.0 +0.6 +0.1 +0.2 +0.8 +1.3 -0.5 +0.5 +1.4 +1.4 -0.6 +0.3 +1.2 +1.3 -0.6 +0.1 +0.8 +1.0 -0.6 +0.2 +0.5 +1.0. -0.4 1/ +0.6 Item End of De cember to end nf Mav 1969 1968 1967 1966 1965 1964 ^/ 1963 All commercial banks Total loans U. S. Gov't, securities Other securities Total +4.8 -9.3 -0.1 -4.6 +1.1 -2.2 +2.0 +0.9 +0.1 -0.4 +5.9 +5.7 +4.1 -5.9 +2 .2 +0.4 +6.7 -5.8 +2.3 +3.2 +2.8 -4.3 +0.7 -0.9 +1.0 -3.4 +2.4 1/ All Large Banks 3/ Total loans U. S. Gov't, securities Other securities Total i/ -6.3 -1.3 -7.6 -1.1 -2.3 +1.0 -2 .3 -2.9 +0.2 +4.5 +1.9 +1.5 -4.3 +1.0 -1.8 +3.5 -4.2 +1.4 +0.6 +0.1 -2.7 +0.2 -2.4 -1.1 -2.3 +1.8 -1.7 Other banks 3/ Total loans U. S. Gov't, securities Other securities Total +4.8 -3.0 +1.2 +3.0 +2.2 +0.1 +1.0 +3.2 +3.0 -0.6 +1.4 +3.8 • +2.6 -1.6 +1.2 +2.2 +3.2 -1.6 +0.9 +2 .6 +2.7 -1.6 +0.5 +1.5 +2.1 -1.1 +0.6 +1.7 NOTE: 1/ 2/ 37 Data exclude all interbank loans; call report data for large banks used when available. Less than $50 million. Based on estimated data for December 1963, and 1962, for all commercial banks and for December 31, 1962, for large banks. Based on revised coverage beginning July 1966, January 1967, 1968, and 1969. Exhibit E Changes in Commercial and Industrial Loans at Large Commercial Banks (In millions of dollars) Late April to late May 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 manufacturing Mining Public Utilities, total Transportation 3J Communication 3/ Other public utilities Construction All other types of business Bankers acceptances Services 3J Other Foreign business concerns X! Classified Unclassified Total Change 1/ 2/ 1968 1969 + + - + + + + + - + + - + + + - 42 94 217 147 70 69 14 74 15 6 46 2 149 77 37 96 20 62 32 50 106 126 139 33 20 51 116 88 28 117 29 193 105 88 251 25 272 3 1 11 2 30 16 -f 27 79 26 75 10 91 80 17 55 69 31 100 700 3 - 703 1967 - - - - - - - - - - - - + - - - + + + - - - + + - + - + 113 128 168 110 58 243 9 216 74 56 43 31 107 50 25 15 102 — — + + Late December to late May 2/ + + + - 7 95 9 30 50 21 41 36 890 78 812 1966 66 73 116 111 5 220 41 96 49 34 65 146 25 53 68 + 45 + 114 n • a. n • a. n .a. 64 30 33 n• a • 63 n .a. 807 140 947 1965 - - - - + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + 113 115 280 209 71 120 20 20 46 34 14 21 20 33 30 43 87 n • a. n • a. n • a. 92 151 92 n• a • 59 h .a. 537 89 626 1966 1965 686 225 393 283 122 351 118 + 289 62 4 775 + 843 142 + 195 487 + 250 66 f 192 280 + 138 393 + 176 70 + 289 + 334 + 239 105 f 247 96 + 192 110 + 163 305 56 n. a • + 170 n . a. 142 368 n • a. 30 f 117 + 391 + 391 13 + 146 126 n • a. + 371 + 404 36 n • a. + 874 f2 ,344 + 215 f 481 +1 ,089 4-2,825 439 314 810 558 252 956 136 514 81 225 295 160 233 226 184 186 66 n • a. n • a. n • a. 171 186 234 n . a. 420 n. a . +2 ,720 384 +3 ,104 1968 1969 p 574 - 572 250 - 448 291 211 117 134 174 77 + 975 + 507 102 381 487 48 98 58 288 136 408 408 131 411 238 132 169 97 58 17 194 543 198 96 393 144 23 57 285 - 466 322 185 +1 ,247 396 258 385 769 385 736 396 152 47 +3 ,244 +1 ,097 139 245 +3 ,489 +1 ,236 - - 1967 - + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + - + + + + + + + - + + + + + + - + + + + + + + + + + + + + + + + - - + Four most comparable weeks used throughout, Changes are compiled from December 25, 1968; December 27, 1967; December 28, 1966; December 29, 1965; and December 30, 1964. These data cannot be linked with all commercial bank data which are always for December 31. 3>/ Prior to 1967, transportation, communication, services, and foreign loans were not reported separately. - + + + - + + Exhibit F Loans and Investments at All Commercial (In billions of dollars) Loans and investments Date 1960- -Dec. 1961- -Dec. 1962--Dec. 1963- -Dec. 1964- -Dec. 1965- -Dec. 1966- -Dec, 1967- -Dec. 31 30 31 31 31 31 31 30 1968- -Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 31 28 27 24 29 29 31 28 25 30 27 21 1969- -Jan. Feb. Mar. Apr. May 29 26 26 30 28 U. S. Gov't. Other securities Total loans Real estate Business Security 198.5 214.4 233.6 252.4 273.9 301.8 317.9 1/ 354.5 61.0 66 .6 66.4 63.4 63.0 59.5 56.2 62.5 20.9 23.9 29.3 35.1 38.8 44.9 48.8 2/ 61.5 116.7 43.1 123.9 45 .2 137.9 49.1 153.9 53.7 172.1 60.2 197.4 71.4 213.0 1/ If 80.6 230.5 88.5 28.7 30.3 34.3 39.2 43.7 49.3 54.0 58.5 5.1 6.2 7.3 7.9 8.4 8.5 9.0 10.5 r r r r r r 350.5 350.9 351.5 354.7 355.4 361.4 366.0 367.9 374.4 379.3 381.1 393.4 62.2 63.2 61.2 59.8 60.3 58.6 60.5 61.5 62.5 64.8 62.8 64.5 61.7 62.2 63.1 63.8 63.5 64.4 64.6 66.0 67.6 68.8 69.5 71.5 226.5 225.5 227.2 231.0 231.6 238.4 240.9 240.4 244.2 245.7 248.8 257.4 85.7 85.9 87.8 89.2 88.7 91.5 91.3 90.3 92.1 92.7 94.7 98.4 58.8 59.2 59.6 60.2 60.8 61.4 61.9 62.5 63.2 64.0 64.7 65.1 10.8 9.7 8.7 8.7 8.5 9.2 11.1 11.1 11.4 10.5 10.0 11.8 r r r P P 385.0 384.1 385.6 390.7 388.8 63.2 59.5 58.5 57.9 55.2 70.5 70.9 71.4 72.0 71.4 251.3 253.7 255,7 260.8 262.2 96 .5 97.7 99.9 101.8 102.1 65.6 66.1 66.6 67.2 67.8 9.5 9.5 8.8 9.4 9.3 ( ( Farm 7.1 7.4 7.5 8.2 8.6 1) 9.3 9.3 9.5 9.6 9.7 9.8 10.0 10.1 10.0 9.9 9.9 9.8 9.7 9.7 10.0 10.1 10.3 10.4 r - Revised. http://fraser.stlouisfed.org/ » e Reserve Bank of St. Louis Federal a .Tun, and necmdwr r.ll 21.4 23.7 27.2 31.0 35.7 38.3 40.0 Nonbank financial institutions 7.1 7.3 8.5 10.2 10.9 13.3 13.3 12.5 40.1 40.2 40.5 41.1 41.6 42.1 42.6 43.2 43.6 44.1 44.4 44.9 13.7 44.9 44.9 45.2 r 45.9 46.6 12.5 12.3 13.3 12.7 11.3 10.7 10.8 11.1 10.8 12.2 12.0 11.4 11.9 12.0 12.1 12.1 Consumer and "other loans i' S t : : Individual loans category data are available for publication only on 20.6 5.7 6.2 NOTE: Data exclude interbank loans. are partly estimated for all dates. Other data are partly estimated on all but June and December call dates. P " Preliminary. Consumer dafa All other 8.7 9.8 10.7 11.3 13.9 15.0 13.6 1/2/ 15.9 15.3 15.2 15.1 15.8 16.2 16.8 16.7 16.7 16.9 17.3 17.9 18.9 18.2 18.2 18.0 18.2 18.5 Exhibit G Ratios to Total Deposits 1/ U.S. Government securities maturing within one year L O A N S Date All commercial banks M e m b e r B a n k s Reserve City Banks Total . New York City of Other Chicago Citv Country All commercial banks 1951--Dec. 1952—Dec. 1953—Dec. 1954—Dec. 1955—Dec. 1956—Dec. 1957—Dec. 1958—Dec 1959—Dec. I960—Dec. 1961—Dec. 1962—Dec. 1963—Dec. 1964—Dec. 1965—Dec. 1966—Dec. 1967—Dec. 31 31 31 31 31 31 31 31 31 31 31 28 25 31 31, , 31- ' 30 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 63.7 65.8 63.8 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 65.4 67.9 65.8 46.3 50.6 50.6 46.8 56.7 61.7 61.9 57.7 67.3 65.9 65.0 67.9 67.4 69.3 75.9 83.5 79.9 36.2 38.9 39.1 38.3 46.3 52.7 55.2 49.4 58.2 60.8 58.0 61.4 62.1 64.4 70.2 77.0 70.8 39.4 41.1 42.2 41.9 48.5 52.7 53.3 51.3 58.2 59.0 57.7 60.1 63.3 65.0 68.7 70.2 68.1 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 57.9 59.2 58.2 9.8 11.7 16.9 10.0 5.1 7.5 8.4 8.3 7.4 8.7 11.2 9.5 7.5 8.0 7.3 6.1 6.4 1968—Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 31 28 27 24 29 29 31 28 25 30 27. 31 64.0 63.9 64.6 65.4 65.7 66.1 66.2 66.2 66.0 65.4 66.0 64.7 65.6 65.5 66.4 67.4 67.6 68.1 68.1 68.1 68.1 67.4 68.3 66.8 80.2 79.7 81.8 84.4 84.9 85.1 87.5 89.2 87.5 : 85.7 87.9 83.5 70.0 70.3 75.1 75.6 75.6 78.6 76.1 75.5 76.6 74.4 76.4 75.1 67.4 67.5 68.6 69.8 70.0 70.5 69.6 69.3 69.6 69.3 70.6 69.1 58.2 58.2 58.3 58.9 59.1 59.3 59.5 59.6 59.5 59.0 59.2 58.2 6.3 5.9 5.5 4.9 5.1 5.1 5.4 5.3 5.5 6.5 5.7 6.1 1969—Jan. Feb. Mar. Apr. May 29 26 26 3Op 2 8p 66.2 67.4 68.1 68.4 70.0 68.4 69.7 70.5 70.9 72.6 86.1 71.0 94.1 94.4 99.7 77.1 80.1 83.8 83.1 85.5 71.4 72.1 72.9 73.4 75.0 59.2 59.8 60.2 60.3 61.4 6.0 5.4 5.7 n.a. n .a. NOTE: Comparability of figures affected by changes in Federal Reserve membership, merger, and by changes in the reserve classification of cities or individual banks. p - Preliminary. r - Revised. 1/ 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/ Beginning in June, 1966,loans at all commerdial banks exclude about $1 billion of participation certificates now reported in other securities . If the $1 billion were included in loans in June the ratio for all commercial banks would be 66.3 compared with 66.0 on the current basis. L 4 3 EXHIBIT H, PART 1 DEPOSITS AND CURRENCY AND TURNOVER OF DEMAND DEPOSITS Seasonally adjusted. Deposits, average of daily figures. Turnover, monthly. Annual rate Billionsof dollars IT rr~R' 225 205 TIME AND SAVINGS DEPOSITS ALL COMMERCIAL BANKS > 185 45 MONEY SUPPLY TURNOVER OUTSIDE N.Y.C. 232 SMSA'S 40 165 35 145 10 10 U.S. GOVT. DEPOSITS MEMBER BANKS 0 1966 1967 1968 1969 Exhibit H - Part II P e r i o d Total • S e a s o n a l l y A d j u s t e d D a t a (Dollar amounts in billions) Time and 1/ M o n e y S u p p l y U.S. Gov't. 1/ savings 2/ deposits deposits Demand deposits Currency (all member) 1/ (All commercial) Not Seasonally Adj. (In mil. of dollars) Turnover outside N Y. City* (per cent) Gross liabilities of U.S. banks to 3/ 4/ their foreign branches 1964—December 1965—December 1966—December 1967—December 159.3 166.8 170.4 181.3 125.1 130.5 132 .1 140.9 34.2 36.3 38.3 40.4 126.6 146.9 158.1 183.5 5.1 4.2 3.5 4.6 33.3 37.4 40.0 41.1 1,183 1,345 4,036 4,241 1968--January February March April May June July August September October November December 182.3 182.7 183.4 184.4 186.1 187.3 189.4 190.2 189.5 190.2 191.9 193.1 141.7 141.9 142.2 143.0 144.5 145.3 147.2 147.6 146.7 147.4 148.7 149.6 40.6 40.7 41.1 41.4 41.6 42.0 42.2 42 .6 42.7 42.8 43.2 43.4 184.1 185.2 186.7 187.1 187.6 188.2 190.4 193.8 196.6 199.6 201.9 204.3 5.4 7.1 6.7 5.2 3.7 3.9 2.7 4.8 4.3 5.0 4.7 4.2 41.6 42.1 41.6 42.3 43.0 43.4 43.7 43.7 43.8 46.5 44.9 44.5 4,259 4,530 4,920 5,020 5,888 6,241 6,183 7,025 7,131 7,080 7,273 6,976 1969—January February March April p May p 193.7 193.8 194.0 195.7 195.3 150.1 149.9 149.8 151.5 150.8 43.6 43.9 44.2 44.2 44.5 202.5 201.0 201.0 200.8 200.1 5.3 6.7 4.9 5.8 5.9 46.1 47.4 46.1 46.8 n.a. 8,656 8,869 9,918 9,706 10,288 Week ending: May 7 p 14 p 21 p 28 p 194.0 195.1 196.9 195.8 149.7 150.6 152.4 151.2 44.3 44.5 44.5 44.6 200.2 200.2 200.1 200.0 6.5 7.3 5.1 5.4 n.a. n.a. n.a. n.a. 10,193 9,992 10,576 10,288 1/ 2/ Averages of daily figures. Beginning on June 9, 1966, time deposit 3/ 4/ Last Wednesday of month. certain changes in coverage and definitions have occurred that affect somewhat the comparability of the data. data exclude $1.1 billion of balances accumulated for the payment of personal loans. small however. * - Beginning January 1964, data for 232 metropolitan centers outside New York City. P * Preliminary. Breaks in the series are relatively L.4.3 EXHIBIT I. Part 1 TIME AND SAVINGS DEPOSITS AT LARGE COMMERCIAL BANKS Billions of dollars Wednesday figures 120 TOTAL TIME AND SAVINGS DEPOSITS 100 CONSUMER-TYPE TIME AND SAVINGS 80 60 SAVINGS DEPOSITS 40 CONSUMER TYPE TIME DEPOSITS 20 NEGOTIABLE CD's STATE AND POLITICAL, FOREIGN OFFICIAL ETC. 1966 1967 1968 Exhibit I - Part II Period 1966--Dec. Dec. 1967--Dec. Dec. 28 28 27 27 1968--May (old) (new) 2/ (old) (new) 2/ Total ConsumerI type time & savings Time and Savings Deposits ConsumerLarge Savings type Negotiable time CD's State Political For. official etc . 89,495 89,639 102,809 102,991 65,733 65,847 73,686 73,820 47,099 47,213 48,647 48,781 18,634 18,634 25,039 25,039 15,659 15,642 20,330 20,330 8,103 8,150 8,793 8,841 29 104,170 75,637 48,470 27,167 19,543 8,990 1968—Oct. Nov. Dec. Dec. 30 27 31 (old) 31 (new) 2/ 110,771 111,895 111,900 112,103 78,456 78,656 79,443 79.637 48,522 48,668 49,016 49,161 29,934 29,988 30,427 30,476 23,303 24,302 22,821 22,820 9,012 8,937 9,636 9,646 1969—Jan. Feb. Mar. Apr. 29 26 26 30 110,030 109,211 108,408 106,949 79,473 79,944 80,492 79,834 48,342 48,335 48,667 47,737 31,131 31,609 31,825 32,097 21,031 19,968 18,792 17,622 9,526 9,299 9,124 9,493 1969--May 7 14 21 28 106,837 106,598 106,379 106,216 79,825 79,768 79,813 79,814 47,726 47,679 47,713 47,701 32,099 32,089 32,100 32,113 17,495 17,408 17,138 16,994 9,517 9,422 9,428 9,408 1/ Negotiable certificates of deposit issued in denominations of $100,000 or more. 2_/ Revised series. Exhibit J Member Bank Reserves (Based on averages of daily figures; in millions of dollars) Free reserves (excess reserves minus borrowings) D A T E All member Reserve City Banks New York City of City Chicago Other Excess Reserves Country Borrowings All member All member Total reserves held seasonally adjusted All member Monthly Averages: 1959--December 1960—December 1961--December 1962--December 1963--December 1964--December 1965—December 1966—December 1967--December -424 669 419 268 209 168 - 2 -165 107 -109 10 - 50 - 62 19 - 14 - 70 - 95 - 22 -104 4 - 22 - 11 21 - 31 - 8 - 50 - 5 -449 80 20 - 52 -122 -103 -161 -159 - 55 237 583 471 394 334 315 238 140 187 482 756 568 572 536 411 452 392 345 906 87 149 304 327 243 454 557 238 18,512 18,839 19,640 20,343 21,017 22,068 23,262 23,521 25,879 1968—Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 144 38 -315 -413 -326 -341 -226 -190 -132 -167 -245 -297 - 9 57 13 59 34 22 - 25 -164 -136 - 40 - 18 -130 - 2 2 - 59 -105 - 64 - 43 - 78 2 - 19 - 4 - 9 - 70 - 80 - 73 -253 -257 -189 -224 - 97 - 94 -133 -191 -258 -167 236 166 11 9 - 38 - 96 - 27 66 156 68 40 70 381 399 356 270 420 351 299 375 383 260 324 455 237 361 671 683 746 692 525 565 515 427 569 752 26,064 26,273 26,363 26,202 26,250 26,432 26,574 27,058 27,121 27,293 27,451 27,705 1969—Jan. Feb. Mar. Apr. May p -480 -596 -701 -844 -1,133 - 60 - 67 - 44 -117 - 89 - 49 - 33 -101 -116 -156 -337 -403 -456 -521 -557 - 34 - 93 -100 - 90 -331 217 228 217 152 270 697 824 918 996 1,403 27,845 27,737 27,637 27,501 27,849 1/ Series revised beginning January 1959. 1/ j 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 Demand deposits and currency If Total Commercial banks 3/ Mutual savings banks Postal Savings System U. S. Gov't, U. S. Gov't, securities Savings maturing savings and loan within one bonds 5/ shares 4/ year 6/ Liquid assets to gross national product 7/ 8 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966* 1967 320.3 332.5 343.2 356.0 373.1 393.9 399.2 424.6 459.0 495 .4 530.5 573 .1 601 .5 650.4 1968 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 655.8 658.6 665.6 664.6 667.8 670.8 676.5 679.6 684.9 693.1 699.4 709.5 1969 Jan. Feb. Mar. Apr. May r r r r r r r r P P P P P 703.7 705.6 713.1 709.0 710.4* For footnotes see-next page * - DC glliUJ.115 ». 48.2 49.7 52.0 57.5 65.4 67.4 73.1 82.5 98.1 112.9 127.1 147.1 159.3 183.1 26.3 28.1 30.0 31.6 33.9 34.9 36.2 38.3 41.4 44.5 49.0 52.6 55.2 60.3 2.1 1.9 1.6 1.3 1.1 0.9 0.8 0.6 0.5 0.5 0.4 0.3 0.1 179.6 178.2 181.7 181.1 183.9 186.7 186.2 185.9 186 .4 188.G 190.6 § 199.1 186.5 187.6 187.9 187.6 187.7 187.9 191.5 194.0 196.2 200.4 204.7 203.8 # 60.6 61.1 61.4 61.7 62.1 62.6 62.8 63.0 63.4 63.8 64.3 64.7 __ 188.7 189.8 192.4 190.5 190.9 203.4 202.9 201.9 64.8 65.2 65.5 65.7 65.9 130.2 133.3 134.6 133.5 138.8 139.7 138.4 142.6 144.8 149.6 156.7 164.1 368.6 180.7 *00.6 199.6 r - Revised - - - - — 27.2 32.0 37.0 41.7 47.7 54.3 61.8 70.5 79.8 90.9 101.4 109.8 113.4 123.9 55.6 55.9 54.8 51.6 50.5 47.9 47.0 47.4 47.6 49.0 49.9 50.5 50.9 51.9 30.6 31.6 33.2 38.8 35.6 48.8 41.9 42.6 46.8 48.1 46.1 48.6 53.9 50.5 # 123.6 124.6 125.8 125.9 126.4 126.8 127.2 128.1 129.5 130.0 130.8 ' 131.0 51.9 51.8 51.8 51.8 51.8 51.9 51.9 52.0 52.0 52.0 52.1 52.5 53.6 55.4 57.0 56.5 55.9 54.9 56.9 56.6 57.4 58.9 57.0 58.5 131.0 132.0 133.4 e 133.2 ' e 133.5 ' 52 .5 52.3 52.2 52 .2 52.2 63.4 63.4 67.7 66.9 68.2 Ratios: Commercial Demand deposits and bank deposits currency to and currency to gross nation- liquid assets al product 7/ (2 + 3 t 1) 10 11 85.3 81.3 79.7 80.5 79.5 34.7 32.6 31.3 30.4 29.7 80.2 28.6 79.0 78.4 79.5 81.0 81.5 79.8 77.9 79.2 27.5 26.4 25.1 24.6 24.1 22.8 21.8 21.9 79.1 21.7 78.2 21.5 77.8 21.4 78.5 21.5 78.4 21.3 55.7 55.0 54.4 53.6 54.8 52.6 53.0 53.0 52.9 53.0 53.5 54.3 54.5 55.9 55.8 55.5 55.5 55.5 55.6 55.8 55.8 55.9 ' 55.9 56.0 56.5 56 .8 55.7 55.6 55.3 55.2 55.0 e - Estimated Preliminary ' ITT..-,i-g, i=.« «ith •"«« " - ' » 1 ; V * r £ . ! m " l m o " " * "°"'1 Both figures Exhibit K (Continued) 1. 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 account, and postal savings redeposited in commercial banks. Data are as of the last Wednesday of month except June 30 and December 31 when call data for these dates were used when available. Time deposits of commercial banks in Alaska and Hawaii and time deposits due to banks in U . S . possessions are included as indicated for demand deposits in footnote 2 above. 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 12 months prior to first call date, and prior to 1956, nonmarketable Treasury savings notes with maturities up to 36 months. Prior to December 1950 figures for marketable issues include securities callable within one year. Figures represent par value and are from the U. S. Treasury Department's Survey of Ownership of U. S. Government Securities. 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) .
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