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L.4.3 Not for publication pf March 17, 1967. MAR 27 1- / _ _L J BANKING AND MONETARY DEVELOPMENTS IN FEBRUARY^ l Summary. Commercial bank credit increased further in February but at a pace considerably below that of the two previous months. Heavy repayments of security and finance company loans more than offset moderate increases in most other loan categories including business loans, and total bank loans declined. Treasury issues held by banks increased sharply, in February, in marked contrast with a decline the previous month and their holdings of municipal and agency issues rose at about the same rapid rate as in January. Time and savings deposits showed further sharp growth. The increase in the money stock more than offset the reduction in January. Total and required reserves increased substantially further. Member bank borrowings declined. Changes in Commercial Bank Credit* Money Supply and Time Deposits (Seasonally adjusted) 19 57 Jan. Feb. Feb. Total loans and investments Annual rate (per cent) Dec. 19661966 2nd 1st 1st Feb. Qtr. Half Half 1 Year 1967 Year 1965 6.5 10.6 10.1 8.0 9.8 1.9 5.9 10.2 U.S. Gov't, securities 24.5 6.6 15.1 -11.8 -9.0 -2.9 -5.9 -5.6 Other securities 29.1 29.8 19.9 8.0 12.5 -1.2 5.6 15.8 Total loans -3.4 7.2 6.6 13.8 14.7 4.1 9.5 14.7 Business loans 1.5 11.4 7.6 17.3 20.2 7.6 14.3 18.5 Money supply 6.4 0.7 3.1 5.0 4.7 -0.9 1.9 4.7 Time and savings deposits at 20.0 all commercial banks 19.7 16.3 7.1 10.3 6.1 8.4 16.0 * - Where necessary, changes in loans and other securities described above are adjusted for the definitional shift of about $1 billion of participation certificates from loans to other securities on June 30, 1966. Changes in total credit, total loans, and total time and savings deposits described above are also adjusted for the reduction of $1.1 billion of balance accumulated for the payment of personal loans excluded on June 9 as a result of a change in Federal Reserve regulations affecting reserve requirements. Bank credit. Total loans and investments at all commercial banks increased $1.7 billion in February, or at an annual rate of 6*5 per cent, only slightly more than half the average December-January expansion. Since the shift in monetary policy in late November, bank credit has increased at a relatively high annual rate of approximately 10 per cent. However, in contrast with the December-January period, when loan growth accounted for two-thirds of total bank credit expansion, all of February's increase in bank credit was accounted for by bank acquisitions of securities. Holdings of municipal and agency issues increased $1.2 billion in February, the same as in January and growth over the two months--at an annual rate close to 30 per cent--was the most rapid since early 1962. At large banks, where most of this growth occurred, holdings of tax warrants and other short-term instruments increased significantly though holdings of participations and longer-term issues rose as well* U.S. Government securities portfolios increased by $1,1 billion in February, following a decline in January. Since November, bank holdings of U.S. Treasury issues have increased $2 billion, or at a 15 per cent annual rate. At weekly reporting banks, holdings of U.S. Government securities increased contraseasonally in February and at other banks, they declined more moderately than usual. City banks apparently acquired a substantial volume of new Treasury notes in connection with the February 15 refunding. Total loans at all commercial banks declined $600 million in February. In part, this was associated with a $1.2 billion reduction in loans to security dealers who reduced their inventories following the sharp build-up in January. In addition, loans to finance companies continued to decline. Business loans rose nominally in February following substantial growth in January. Part of this slowdown was presumably associated with small business payments of accelerated withheld taxes in February as compared with the large payments in January. At weekly reporting banks borrowing was smaller or repayments larger than in corresponding weeks of other recent years for most industry groups. Reductions in loans were especially sharp for food processors, commodity dealers, petroleum processors, and mining concerns. Loans to public utility concerns also declined substantially, perhaps reflecting some repayments out of the proceeds of capital markets financing. Holdings of bankers' acceptances were reduced following heavy purchases in January. On the other hand, loans to transportation equipment concerns continued to exceed those of most other recent years. -3Bank deposits. The $2.7 billion increase in time and savings deposits at all commercial banks in February was the largest recorded dollar increase. The seasonally adjusted annual rate of growth of 20 per cent was also an unusually large relative increase. The rapid expansion in total time and savings deposits in February, which followed the sharp expansion in January and the more moderate increase in December, has resulted in an annual rate of growth in these deposits in excess of 16 per cent for this three-month period, a rate that is comparable with the near-record highs which prevailed over most of 1965. Late in February, however, the rate of expansion moderated somewhat. Among weekly reporting banks, banks outside of New York City accounted for most of the increase. At country banks, growth was at about the same pace as in other recent months. At large commercial weekly reporting banks, between the last Wednesdays of January and February, holdings of negotiable CD's increased further but at a less rapid pace than in January when acquisitions had been at a record volume. In part, this slower growth probably reflected a decline in the yield advantage of CD's relative to Treasury bills in February. Nevertheless, by February 22, outstanding CD's were near to their mid-August high. Since mid-December, outstanding CD's have increased by about $3.2 billion. In February all the CD increases occurred at banks outside New York whereas in January, expansion had been about the same at the two groups of banks. Time deposits other than CD's also increased substantially further in February with growth continuing to be concentrated at banks outside New York City. The money supply rose $900 million in February, more than offsetting the January reduction. For the three month period since November, the money stock' rose at'an'annual rate of about 3 per cent compared with a decline of 2.7 per cent in the five preceding months. On a monthly average basis, U.S. Government deposits were unchanged in February, following a sharp increase in January. Over the December-February period, these deposits also increased. Bank reserves. Total and required reserves rose substantially further in February. Over the four statement weeks ending February 22, free reserves averaged about $40 million compared with net borrowed reserves of $60 million in January. This was the first sustained level of free reserves since early 1965. Member bank borrowings dropped substantially in this period while excess reserves dropped nominally. Reduction in member bank reserve requirements. On February 28, the Board of Governors announced a reduction in reserve requirements from 4 per cent to 3 per cent against savings deposits, Christmas and vacation club accounts, and the first $5 million of other time deposits at each member bank. The reduction, made in two equal steps, was to take effect with the reserve computation periods beginning March 2 and March 16. It is estimated that the combined impact of these changes was to reduce required reserves by about $850 million—approximately $500 million at country banks and $350 million at reserve city banks. Banking Section, Division of Research and Statistics. Board of Governors of the Federal Reserve System L.4.3 - EXHIBIT A , PART 1 LOANS AND I N V E S T M E N T S AT ALL C O M M E R C I A L B A N K S Last W e d n e s d a y of month, s e a s o n a l l y a d j u s t e d Billions of dollars 400 TOTAL LOANS AND INVESTMENTS 300 200 LOANS „ 100 U.S. GOVT. SECURITIES OTHER SECURITIES 1 ii i II 'I i i i ii i i i i i i i i i i 1961 1962 1963 1964 1965 1966 1967 Exhibit A - Part II ... Date Total 1/ (In b i l l i o n s 1962--Dec. 1963--Dec. 1964--Dec. 1965--Dec. 31 2/ 31 2/ 31 31 227.9 246.2 267.2 294.4 134.1 149.7 167.4 192.0 1966--Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 26 23 30 27 25 30 27 31 28 26 p 30 p 31 2/ 297.4 297.5 300.3 302.9 304.9 307.7 3/ 309.2 310.8 308.7 308.1 308.4 310.7 1967--Jan. Feb. 25 p 22 p 314.5 316.2 1/ 2/ 3/ U.S. Gov 1 1 securities Loans 1/ ! of d o l Other securities 1 a r s ) 64.5 61.5 61.1 57.7 29.2 35.0 38.7 44.8 194.5 196.2 198.6 200.8 202.3 204.0 3/ 206.4 206.6 206.1 207.3 207.3 208.2 58.0 55.9 56.0 55.9 55.1 55.1 54.4 56.1 54.3 52.4 52.9 54.3 44.9 45.4 45.7 46.2 47.4 48.6 3/ 48.5 48.1 48.3 48.4 48.3 48.3 211.3 210.7 53.8 54.9 49.5 50.7 Adjusted to exclude interbank loans. Estimated as of December 31. Beginning June 9, loan data exclude the $1.1 billion of balances accumulated for payment of personal loans. Beginning June 30, total loans exclude, and other securities include, about $1 billion of participation certificates. L.4.3 - EXHIBIT B, Part I L O A N S AT A L L C O M M E R C I A L B A N K S Last W e d n e s d a y of month, seasonally adjusted Billions of dollars BUSINESS REAL ESTATE SECURITY IIMIIII 1960 1961 1962 1963 1964 1965 II I I I I I I I I I 1966 Charts not revised and not updated for Business Loans. Exhibit B - Part II Date Business Real Estate ( I n b i l l i o n 1962--Dec. 1963--Dec. 1964--Dec. 1965--Dec. 31 1/ 31 1/ 31 31 1966--Jan. 26 Feb. 23 Mar. 30 Apr. 27 May 25 June 30 July 27 Aug. 31 Sept.28 Oct. 26 p Nov. 30 p Dec. 31 p V Consumer of d o l Security 1 a r s ) 47.6 52.0 58.4 69.2 34.2 39.1 43.5 49.2 23.7 27.2 31.1 35.8 6.2 6.7 7.1 7.2 70.5 71.3 72.2 72.9 74.2 76.2 77.6 77.7 78.2 78.9 79.1 79.1 49.7 50.3 50.8 51.2 51.5 51.9 52.2 52.7 53.1 53.4 53.7 54.0 36.1 36.3 36.9 37.0 37.3 37.5 37.8 38.1 38.3 38.3 38.7 38.9 8.0 6.9 7.2 7.9 7.7 8.3 7.4 8.4 6 .5 6.6 6.6 7.1 1967--Jan. 25 p 80.5 Feb. 22 p 80.6 1/ Estimated as of December 31. 1 1 54.3 54.6 r 39.0 8.4 39.1 7.2 , p - Preliminary r - revised # # # # # # # # # # Exhibit C Changes in Loans and Investments at All Commercial Banks, Seasonally Adjusted (In billions of dollars) 19()7 1966 1965 Item May June Dec. Jan. Feb. Mar. Apr. Loans and Investments 2/ +2.9 + 3.0 +0.1 +2.8 + 2.6 +2.0 U. S. Gov't, securities +0.2 +0.3 -2.1 +0.1 -0.1 -0.8 Other securities +0.6 +0.1 +0.5 +0.3 +0.5 +1.2 +0.24,r Loans 2/ +2.2 +2.5 +1.7 +2.4 +2.2 Business +0.9 + 1.3 +0.8 +0.9 Real estate +0.5 +0.5 +0. 6 Consumer +0.4 +0.3 Security -0.3 Nonbank financial +0.1 July Aug. Sept. Oct. p Nov. p Dec. p Jan.p Feb. p +3.9 4 ' +1.5 +1.6 -2.1 -0.6 +0.3 +2^3 +3.8 +U7 -0.7 +1.7 -1.8 -1.9 +0.5 +1.4 -0.5 +1.1 -0.1 -0.4 | : +0.2 +0.1 -0.1 1/ +1.2 +1.2 +1.5 + 3 . 8 4 f +2.4 +0.2 | -0.5 +1.2 i/ +0.9 +3.1 -0.6 +0. 7 +1.3 + 2.0 +1.4 +0.1 | +0.5 +0.7 +0.2 1/ +1.4 +0.1 +0.5 +0.4 +0.3 +0.4 +0.3 +0.5 +0.4 +0.3 +0.3 +0.3 +0.3 +0.3 +0.2 +0.6 +0.1 +0.3 +0.2 +0.3 +0.3 +0.2 1/ +0.4 r +0.2 r+0.1 +0.1 +0.8 -1.1 +0.3 +0.7 -0.2 +0.6 -0.9 +1.0 -1.9 +0.1 1/ +0.5 +0.1 1/ +0.7 +0.3 -0.5 + 1.2 -0.8 -0.9 +0.3 1/ 1/ -0.2 1/ 1/ 1/ 1/ 1/ +0.1 1/ +0.3 -0.24/ +0.3 +0.5 1/ -0.3 1/ All other +0.4 -0.3 +0.1 +0.5 1/ +0.3 +0.6 4/ 1/ -0.5 -0.2 -0.2 -0.3 k +o.i Total loans excluding security 3/ +2.3 +1.9 +1.7 +3.3 +1.5 + 2.0 +4.2 +1.5 1/ +1.2 +0.5 ! +0.6 k +0.4 Total loans excluding security and nonbank financial 3/ +2.2 +1.8 +1.7 +2. 6 +1.2 +2.5 +3.0 +2.3 +0.9 +0.9 +0.5 +0.6 1, f +0.6 Agriculture -1.2 1 -0.5 i 1 -0.1 r+0.1 -0.2 | +1.6 -0.2 | +1.8 +0.3 NOTE--Individual loan items may not add to change in total loans because: (1) loan items are gross of valuation reserves while total loans are net and (2) loan items and total loans are independently seasonally adjusted. Seasonally adjusted loans, by category, are experimental and are subject 1/ 2/ 3/ 4/ to revision. Less than $50 million. Adjusted to exclude interbank loans. Derived by addition of items and not by subtraction from total loans. Allowance has been made in the monthly changes in total bank credit, total loans and "all other" loans for the $1.1 billion of balances accumulated for the payment of personal loans excluded from time deposits and from loans on June 9. Allowance has been made in the monthly changes in total loans, other securities, agricultural loans and "all other loans" for approximately $1 billion of participation certificates shifted from loans to other securities on June 30, 1966. Data on individual loan categories are not for publication. 1/ 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 January to last Wednesday of February 1967 1966 1965 1964 1963 1962 1961 All commercial banks Total loans U. S. Gov't, securities Other securities Total -1.1 4-0.6 +1.3 +0.8 +0.9 -2.3 +0.7 -0.8 +2.0 -1.0 +0.6 +1.6' +1.1 -0.6 +0.5 +1.0 +1.8 -0.9 +0.4 +1.3 +1.5 -1.2 +0.4 +0.7 +1.6 -0.6 +0.4 +1.4 3/ Large banks — Total loans U. S. Gov't, securities Other securities Total -1.0 +0.7 +1.1 +0.8 +0.6 -1.8 +0.4 -0.8 +1.5 -0.8 +0.5 +1.1 +0.7 -0.2 +0.4 +1.0 +1.2 -0.5 +0.3 +1.0 +1.0 -1.0 +0.4 +0.4 +1.4 -0.4 +0.3 +1.3 Other banks 2/ Total loans U. S. Gov't, securities Other securities Total -0.1 -0.1 +0.2 1/ +0.3 -0.5 +0.3 1/ +0.5 -0.2 +0.1 +0.5 +0.3 -0.4 +0.1 1/ +0.6 -0.4 +0.1 +0.3 +0.5 -0.2 1/ +0.3 +0.2 -0.2 +0.1 +0.1 1961 End of December 1967-/ 1966 1965 to end of February 2/ 19641963-/ 1962 All commercial banks Total loans U. S. Gov't, securities Other securities Total -6.0 +0.3 +1.9 -3.8 -3.8 -2.2 +0.2 -5.8 -1.6 -2.5 +0.9 -3.2 -3.3 -1.9 1/ -5.2 -2.7 -1.1 +0.6 -3.2 -2.8 -0.6 +0.6 -2.8 -2.3 +0.3 +0.4 -1.5 Large banks —^ Total loans U. S. Gov't, securities Other securities Total -4.9 +0.4 +1.5 -2.9 -2 .9 -2.4 +0.1 -5.2 -1.6 -2.1 +0.7 -3.1 -3.0 -1.4 1/ -4.5 -2.7 -0.9 +0.4 -3.1 -2.5 -0.7 +0.4 -2.8 -1.9 1/ +0.4 -1.5 Other banks Total loans U. S. Gov't, securities Other securities Total -1.1 -0.1 +0.4 -0.9 -0.9 +0.1 +0.2 -0.6 1/ -0.4 +0.2 -0.1 -0.3 -0.5 1/ -0.7 1/ -0.2 +0.2 -0.1 -0.3 +0.1 +0.2 1/ -0.4 +0.3 1/ Item 1/ NOTE--Data exclude all interbank loans; call report data for large banks used when available. 1/ Less than $50 million. •_2/ Based on estimated data for December 31, 1966, 1963, and 1962, for all commercial banks and for December 31, 1966 and 1962, for large banks. 3/ Based on revised coverage beginning July 1966 and January 1967, Exhibit E Changes in Commercial and Industrial Loans at Large Commercial Banks (In millions of dollars) Late December to Late .Tanuarv to 1 ate Februarv 1/ Business of borrower 1957 1966 1965 1964 1963 1967 1966 1965 1964 1963 -304 -427 - 26 -196 -322 + 24 -126 - 99 - 76 Food processors -104 + 14 +135 -136 -104 + 54 -104 5 5 Commodity dealers - 71 + 82 +100 +109 + 91 -202 -246 Trade concerns +202 -293 + .5.9 -197 + 33 + 56 + 72 + 59 -143 Retail trade -172 +215 + 71 -206 -121 + 26 + 67 + 37 + 32 - 59 Wholesale trade - 74 - 13 - 12 - 87 - 76 +117 +239 +185 +140 +271 +166 +307 Metals +220 +270 + 11 + 14 + 28 - 9 + 56 - 1 + 56 Primary metals + 20 + 15 + 11 - 4 + 79 +122 + 93 + 84 +126 + 48 Machinery +164 + 84 +264 + 28 + 53 + 47 + 25 + 25 + 89 Transportation equipment + 68 " 19 +104 9 - 33 - 6 + 56 + 34 -+ 33 Other fabricated metals + 81 + 55 + 4 + 17 + 20 +190 +115 +191 +121 + 80 +145 Textiles, apparel, etc. +100 + 89 +145 + 83 + 24 +179 - 43 - 21 + 61 +140 Petroleum +128 + 45 - 48 - 45 +123 +101 + 21 + 13 + 97 +141 Chemicals + 69 +121 + 50 - 15 + 24 + 43 + 20 + 35 Other durable manufacturing - 30 + 53 + 47 + 24 - 30 - 13 + 26 + 49 + 21 + 27 Other nondurable manufacturing - 24 - 16 + 17 + 29 - 28 + 12 - 36 +110 - 33 - 13 +243 + 92 Mining +155 + 92 +219 - 79 Public Utilities, total - 1 +19 -135 - 67 -136 -212 - 67 -241 -250 -115 n .a. n.a. n.a. n.a. Transportation 3/ -n.a. n.a . n.a. + 39 n.a. n.a. n.a. n.a. n.a. + 41 n.a. n.a. Communication 3/ n.a. - 21 n.a. n.a. n.a. n.a. n.a . -177 n.a. n^a. Other public utilities -133 n.a. n.a. + 1 + 47 4 + 26 + 2 - 2 - 99 + 16 + 21 + 1 - 65 Construction + 36 + 54 +161 + 18 +100 -143 - 10 +255 -223 All other types of business - 27 + 6 + 43 - 67 n.a . + 82 - 33 -277 n.a. -114 n.a. Bankers acceptances n.a. n.a. n.a . n.a. -157 n.a. n.a. - 60 n.a. n.a. Services 3/ + 30 +121 +118 n.a. +175 -110 +267 n.a . - 49 n.a. Other n.a. n.a. n.a. n.a. + 38 n.a. n.a. + 30 n.a. n.a. Foreign business concerns 3/ +1,034 +605 +293 +244 +345 19 +915 — 64 -332 -577 Classified +132 +102 +158 + 25 72 + 85 + 7 + 64 +139 25 Unclassified +737 +1,192 +395 +269 | +430 91 +922 + 75 Total Change -268 -602 1/ Four most comparable weeks used throught. 2/ Changes are compiled from December 2 9, 1955; December 30, 1964; December 25; 1963, December 26, 1962; and December 27, 1961. These data cannot be linked with all commercial bank data which are always for December 31. 3/ Prior to 1967, transportation, communciation, services, and foreign loans were not reported separately. Exhibit F Loans and Investments at All Commercial Banks (In billions of dollars) Nonbank financial institutions All other Loans and investments U. S. Gov't. Other securities Total loans Business Real estate Security Farm Consumer 169.3 184.4 184.2 184.2 189.5 198.5 214.4 233.6 252.4 273.9 58.2 66.4 60.9 60.9 58.9 61.0 66.6 66.4 63.4 63.0 17.9 20.6 20.6 20.6 20.5 20.9 23.9 29.3 35.1 38.8 93.2 97.5 102.8 102.8 110.0 116.7 123.9 137.9 153.9 172.1 40.5 40.4 42.5 37.8 40.2 43.1 45.2 49.1 53.7 60.2 23.1 25.3 26.9 26.9 28.1 28.7 30.3 34.3 39.2 43.7 4.2 4.7 4.1 4.1 4.9 5.1 6.2 7.3 7.9 8.4 4.1 5.0 5.0 5.0 5.0 5.7 6.2 7.1 7.4 7.5 15.8 15.9 17.5 17.5 18.8 20.6 21.4 23.7 27.2 31.0 5.9 7.1 7.1 7.3 8.5 10.2 10.9 1965--0ct. 27 Nov. 24 Dec. 31 290.2 292 .3 301.8 58.5 58.8 59.5 44.1 43.8 44.9 187.7 189.8 197.4 67.1 68.3 71.4 48.5 49.0 49.3 6.9 7.2 8.5 8.1 8.2 8.2 35.2 35.4 35.8 11.2 11.3 13.3 14.2 14.1 14.9 1966--Jan. 26 Feb. 23 Mar. 30 Apr. 27 May 25 June 30 July 27 Aug. 31 Sept .28 Oct. 26 Nov. 30 Dec. 31 1967--Jan. 25 Feb. 22 296.8 296.0 298.5 301.7 302.4 310.1 2/ 307.1 307.7 309.3 308.4 309.4 318.5 313.9 314.7 59.6 57.3 55.4 55.5 53.6 53.5 52.7 53.7 53.6 53.5 54.3 56.1 55.8 56.4 44.4 45.1 45.4 46.5 47.1 48.8 3/ 48.6 48.4 48.8 48.6 47.8 48.4 49.0 50.3 192.7 193.6 197.6 199.8 201.7 207.9 2/3/ 205.8 205.5 206.9 206.3 207.3 214.0 209.1 208.0 69.7 70.7 72.6 72.8 74.0 77.2 77.1 76.8 78.1 78.3 79.0 81.6 79.6 80.0 49.7 50.0 50.3 50.9 51.2 51.9 52.4 52.9 53.3 53.7 54.0 54.2 54.3 54.3 7.6 6.9 7.0 7.7 7.5 8.6 7.2 7.7 6.9 6.6 6.4 8.4 7.9 7.2 8.4 8.5 8.6 8.7 8.8 8.5 H 8.6 8.6 8.6 8.6 8.7 8.7 8.8 8.9 35.8 35.9 36.4 36.8 37.3 37.8 38.1 38.5 38.5 38.5 38.7 r38.9 r 38.7 38.6 11.6 11.7 12.5 12.6 11.9 13.9 12.8 12.0 12.5 11.8 11.8 13.5 11.5 14.0 13.9 14.2 14.4 15.1 n 14.0 y 13.7 13.2 13.1 12.9 12.6 r 13.0 r 12.5 12.2 Date 1957--Dec. 1958--Dec. 1959--June June Dec. 1960--Dec. 1961--Dec. 1962--Dec. 1963--Dec. 1964--Dec. 31 31 24 24 31 31 30 31 31 31 (old) (new) 1/ (est.) (est.) p p p (est.) p p — — 11.1 7.2 8.2 8.8 7.6 8.1 8.7 9.8 10.7 11.3 13.9 p - Preliminary. 1/ Structure changes in 1959, on balance through August, added almost $1 billion total credit: $600 million in loans; $300 million in U.S. Government securities; and $100 million in other securities. Real estate loans increased about $300 million; business loans $ 100 million; consumer loans $100 million; and other loans $100 million. 2/ 3/ Beginning June 9, $1.1 billion of balances accumulated for the payment of personal loans were deducted from time deposits and "all other" loans. Beginning June 30, about $1 billion of participation certificates previously included in agricultural and "all other" loans were reclassified as "other securities." N0TE--Daca exclude interbank loans. Total loans are after and types of loans before deductions for valuation reserves. Consumer and "other loans" are partly estimated for all dates. Other data are partly estimated on all but June and December call dates. Beginning June 24, 1959, "business loans" and "all other loans" have been revised to exclude loans to nonbank financial institutions. Individual loan category data are available for publication only on a June and December call data basis. Ratios to Total Deposits 1/ U. S. Government securities maturing within one year L 0 A N S Date 1951--Dec. 1952--Dec. 1953--Dec. 1954--Dec. 1955--Dec. 1956--Dec. 1957--Dec. 1958--Dec. 1959--Dec. 1960--Dec. 1961--Dec. 1962--Dec. 1963--Dec. 1964--Dec. All commercial Total banks Member banks Reserve city banks New York City of Other Citv Chicago 46.3 36.2 39.4 50.6 38.9 41.1 50.6 42.2 39.1 46.8 38.3 41.9 46.3 56.7 48.5 61.7 52.7 , 52.7 61.9 55.2 53.3 49.4 57.7 51.3 67.3 58.2 58.2 65.9 60.8 59.0 65.0 58.0 57.7 67.9 60.1 61.4 67.4 62.1 63.3 69.3 64.4 65.0 31 31 31 31 31 31 31 31 31 31 31 28 25 31 37.2 39.3 40.5 40.3 45.8 48.8 49.7 48.4 54.0 55.1 54.5 56.5 58.6 60.5 37.6 39.9 41.1 40.7 46.7 50.1 51.0 49.4 55.6 56.5 55.7 57.7 59.9 61.9 1965--June 30 July 28 Aug. 25 Sept.29 Oct. 27 Nov. 24 Dec. 31 63.6 63.7 64.1 63.9 63.8 64.2 63.7 64.9 65.0 65.5 65.3 65.2 65.8 65.4 74.3 72.2 74.8 73.4 73.8 77.6 75.9 67.0 67.1 67.7 69.3 69.6 68.2 70.2 63.8 64.6 65.2 64.9 66.0 66.0 66.5 66 .5 66.8 66 .6 66. 6 66 .4 65.9 65.6 65.5 66 .5 67.0 66.6 67.6 67.7 68.3 68.3 68.6 68.4 68.5 68.3 67.7 67.3 75.9 77.5 77.7 75.7 79.3 80.9 82.6 81.9 81.8 82.9 82.7 84.0 81.8 81.8 71.3 73.4 73.9 68.4 70.4 73.4 73.3 74.0 75.3 74.2 77.7 75.8 75.8 74.8 1966--Jan. 26 Feb. 23 Mar. 30 - Apr. 27 - May 25 - June 303/ - July 27 - Aug. 31 p- Sept.28 p- Oct. 26 p- Nov. 30 p- Dec. 28 '67—p— Jan. 25 p- Feb. 22 Country j All commercial banks 32.1 33.9 36.1 37.1 40.7 42.6 44.1 44.4 48.2 50.3 50.2 51.7 53.8 56.0 9.8 11.7 16.9 10.0 5.1 7.5 8.4 8.3 7.4 8.7 11.2 9.5 2/ 7.5 8.0 67.8 68.9 69.0 69.1 69.1 69,3 68.7 58.3 58.6 58.7 58.4 58.2 58.3 57.9 6.0 5.7 6.1 6.4 7.1 7.3 7.3 69.2 70.6 70.8 70.7 70.9 70.3 71.0 71.3 71.9 71.4 71.2 70.5 70.3 69.5 57.9 58.3 59.0 59.2 60.1 59.6 60.1 60.2 60.2 60.1 60.1 59.9 59.7 59.6 7.5 6.3 5.7 5.6 5.4 5.3 5,0 5.6 5.6 5.8 5.6 6.2 6.1 n.a. < < 1 , < 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/ Estimated for December 31. 3/ Beginning in June, loans at all commercial banks exclude about $1 billion of participation certificates now reported in other securities. If the $1 billion were included in loans in July, the ratio for all commercial banks would be 66.3. NOTE: Comparability of figures affected by changes in Federal Reserve membership, mergers, and by changes in the reserve classification of cities or individual banks. p - Preliminary. 1/ L . 4 . 3 . - E X H I B I T H, Part a 1 D E P O S I T S A N D C U R R E N C Y A N D T U R N O V E R OF D E M A N D DEPOSITS) — -- S e a s o n a l l y a d j u s t e d ; tTTrTTo v e r 7 ~ m o n t h I y A n n u a l deposits, monthly — a v e r a g e s of d a i l y . r | IfcwW— f i g u r e s ; . rate II II II i I II I M O N E Y TIME A N D i TTI I I I SUPPLY S A V I N G S DEPOSITS! 2 2 4 SMS A S 343 Centers U 10 T U R N O V E R Outs ide S . G O V T . D E PO S1T?\* N o t adjusted for s e a s o n a l [ 10 I 0 1960 196 1 19621 i 1963 iI 1 1 l 1 1 l 1 1 1 1964 fl96Tj I l i 11 i i 11 i i i i i 1966 • > 1 1 commercial banks.) xT5 V Chart not revised and not updated for Money Supply, Time and Savings Deposits, U.S. Government Deposits, and Turnover. Exhibit H - Part II S e a s o n a l l y M o n e y S u p Period Total Demand deposits A d 1 u s t e d D a t a p l y Time and Turnover savings outside Currency d e p o s i t s ^ N.Y. City* (per cent) U.S. Gov't deposits 1963--December 1964--December 1965--December 1966--December 153.1 159.7 167.2 170.3 120.6 125.4 130.9 132.1 32.5 34.2 36.3 38.3 112.2 126.6 146.9 158.0 33.9 33.4* 37.5 39.7 5.1 5.5 4.6 3.5 1966--February 168.2 131.4 36.8 148.5 37.0 5.2 1967--January p February p 169.6 170.5 131.1 131.7 38.5 38.7 160.5 163.2 n.a. n.a. 4.2 5.1 Week ending: Feb. 1 8 15 22 168.7 169.5 170.1 172.0 130.2 130.9 131.3 133.2 38.5 38.6 38.8 38.8 162.0 162.5 163.0 163.5 n.a. n.a. n.a. n.a. 4.6 5.3 4.7 5.0 1/ Beginning on June 9, 1966, time deposit data exclude $1.1 billion of balances accumulated for the payment of personal loans. P " Preliminary * Beginning January 1964, data are for 224 metropolitan centers outside New York City. Figure for December 1964 on old basis is 35.3. NOTE: Dollar amounts in billions. L.4.3 - EXHIBIT I, Part j j TIME A N D S A V I N G S DEPOSITS AT LARGE C O M M E R C I A L B A N K S Billions pf dollars W e d n e s d a y figures TOTAL TIME AND SAVINGS DEPOSITS SAVINGS DEPOSITS TIME DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS OTHER TIME DEPOSITS i 1964 i i 1965 i I l I I 1966 * C H A N G E IN SERIES. Exhibit I - Part II T i m e Period 1961—Dec. 1962--Dec . 1963--Dec. 1964--Dec. 1965—Dec. 27 26 31 30 29 S a v i n g s Savings Total ( I n a n d m i ! . l i o n s D e p o s i t s Individuals, partnerships, and corporations o f Other time deposits 1/ d o l l a r s ) 41,472 50,011 59,227 66,881 78,260 30,082 34,712 38,083 40,698 45,362 5,969 9,080 13,310 16,407 21,258 5,421 6,219 7,834 9,776 11,640 1966--Feb. June 3/ June 23 29 (old) 29 (new) 79,324 82,868 90,185 45,064 43,104 48,413 22,716 27,515 28,687 11,544 12,249 13,085 Dec. 3/ Dec. 28 (old) 28 (new) 89,495 89,639 47,099 47,213 28,979 29,002 13,417 13,424 1967--Jan. 25 92,545 46,520 32,119 13,906 Feb. 1 8 92,985 93,524 46,459 46,466 32 ,42.5 32,762 14,101 14,296 15 22 93,658 93,986 46,506 46,574 32,889 33,013 14,263 14,399 1/ 27 3/ Includes States and political subdivision, U.S. Government, foreign governments and official institutions, and interbank. Beginning June 15, data exclude the $400 million of balances accumulated for the payment of personal loans. Series revised. Exhibit J Member Bank Reserves (Based on averages of daily figures; in millions of dollars) Free reserves (excess reserves minus borrowings) Date All member Monthly Averages: Reserve City Banks New York City of City Chicago Excess reserves Country Other Borrowings All member All member Total reserves held seasonally ad lusted All member 1/ 1958--December 1959--December 1960--December 1961--December 1962--December 1963--December 1964--December 1965--December - 41 -424 669 419 268 209 168 - 2 - 80 -109 10 - 50 - 62 19 - 14 - 70 - 32 -104 - 4 - 22 - 11 - 21 - 31 - 8 -197 -449 80 20 - 52 -122 -103 -161 268 237 583 471 394 334 315 238 516 482 756 568 572 536 411 452 557 906 87 149 304 327 243 454 18,392 18,434 18,765 19,545 20,224 20,955 21,843 23,010 1966--Jan. Feb. Mar. Apr. May June - 44 -107 -246 -268 -352 -352 - 74 - 75 - 37 - 29 - 40 -143 - 49 26 62 33 3 12 -141 -148 -218 -238 -225 -223 219 143 71 32 -84 27 358 371 305 358 370 322 402 478 551 627 722 674 23,139 23,217 23,274 23,530 23,536 23,539 -358 -390 -367 -431 -222 -165 - 6 - 26 - 93 -124 - 71 - 95 - 54 24 64 95 24 50 -312 -279 -217 -246 -245 - 99 9 -61 6 34 118 139 408 338 398 302 389 392 766 728 766 733 611 557 23,763 23,363 23,492 23,297 23,262 23,283 - 24 j i " 5 - 46 " - 67 -122 - 61 - 79 - 80 224 203 365 357 389 ,362 23,608 23.882 July Aug. Sept. Oct. Nov. Dec. 1967--Jan. p . Feb, p NOTE: 1 Beginning July 26, 1962, figures for both New York and the City o.r Chicago include banks formerly classified as central reserve city and three banks whose classification as reserve city is continued. r - revised. 1/ Data have been adjusted for redefinition of time deposits effective June 9, 1966. Exhibit K Liquid Assets Held by the Public - Seasonally Adjusted Series \J (Amounts in billions of dollars; ratios expressed as percentages) I Time deposits U. S. Gov't, securities maturing within one year 6/ 2 3 4 5 6 7 8 Liquid assets to gross national product 7/ 9 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 320.2 332.5 343.2 356.0 373.1 393.9 399.2 424.6 459.0 495.4 530.5 572.9 130. 2 133.3 134.6 133.5 138.8 139.7 138.4 142.6 144.8 149.6 156.7 764.0 48.2 49.7 52.0 57.5 65.4 67.4 73.1 82.5 98.1 112.9 127.1 147.1 26.3 28.1 30.0 31.6 33.9 34.9 36.2 38.3 41.4 44.5 49.0 52.6 2.1 1.9 1.6 1.3 1.1 0.9 0.8 0.6 0.5 0.5 0.4 0.3 27.2 32.0 37.0 41.7 47.7 54.3 61.8 70.5 79.8 90.9 101.4 109.7 55.6 55.9 54.8 51.6 50.5 47.9 47.0 47.4 47.6 49.0 49.9 50.5 30.6 31.6 33.2 38.8 35.6 48.8 41.9 42.6 46.8 48.1 46.1 48.6 85.9 81.3 79.6 80.3 80.2 80.5 79. 2 78.5 80.4 81.0 81.6 80.5 1966 Jan. Feb. Mar. Apr. May June 578.4 577.5 585.5 587.0 585.7 589.2* 164.8 162.7 167.0 166.4 163.7 166.5 149.2 149.4 151.1 152.5 153.6 153.9* 52.8 53.0 53.1 53.1 53.3 53.4 0.3 0.3 0.3 0.3 0.3 0.2 109.8 110.6 111.4 111.0 111.2 111.4 50.5 50.3 50.3 50.4 50.4 50.4 51.1 51.0 52.1 53.3 53.3 53.4 588.5 592.8 594.3 596.0 600.2 601.0 164.3 167.0 166.1 166.0 167.8 168.2 156.1 156. 6 156.7 156.6 158.2 159.4 53.7 53.9 54.2 54.6 54.8 55.1 0.2 0.2 0.2 0.2 0.1 0.1 110.7 111.3 112.2 112.1 112.8 113.3 50.6 50.6 50.5 50.6 50.6 50.9 52.8 53.3 54.5 56.0 55.8 53.9 j End of year or month Demand deposits and currency 2/ Total 1 July Aug. Sept. Oct. Nov. Dec. p i | | : p p ! ! ! ! : ! 1 1 Mutual savings banks Ccr-nercial banks 3/ | j i Postal Savings System Savings U. S. Gov't, and loan savings shares 4/ bonds 5/ Ratios: Demand deCommercial posits and bank deposits currency to and currency to gross nation- liquid assets al product 7/ (2 + 3 t 1) 10 11 35.0 32.6 31.2 30.3 29.9 28.7 27.6 26.4 25.4 24.6 24.1 22.9 55.7 55.0 54.4 53.6 54.8 52.6 53.0 53.0 52.9 53.0 53.5 54.3 ! 1 ! 80.2 | 22.8 | 80.1* 22.7 | 79.3 22.3 i j 22.0 | 78.7 1 I i i 54.3 54.1 54.3 54.3 54.2 54.4* 54.5 54. 6 54.3 54.1 54.3 54.5 j 1967 . 54.6 51.0 54. 3 113.8 0.1 i 55.5 ' 163.4 166.7 Jan. p 604.7 52.2 165.6 604.1 SO. Q Feb. p 165.1 55.9 0.1 54,7 114. For footnotes see next page. p - Preliminary r - revised. * - Beginning with data for June 1966, total liquid assets and time deposits at commercial banks exclude $1.1 billion of balances accumulated for the payment of personal loans. • • Exhibit_K (Continued) 1 • e # i. 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 through- V out. 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 19 , savings and loan associations. Figures have been adjusted to include partially tax-exempt securities 12months prior to first call date, and prior to 1956, nonmarketable Treasury sayings 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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