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1 tBDl*: ai ^ A f. / L.4.3 Not f o r p u b l i c a t i o n — fcesmxh librcr BANKING AND MONETARY DEVELOPMENTS IN FEBRUARY 1966 Summary. F o l l o w i n g a l a r g e e x p l o s i o n i n J a n u a r y , s e a s o n a l l y a d j u s t e d cotjniejrcial c r e d i t wa$ e s s e n t i a l l y unchanged i p F e b r u a r y , T o t a l l o a n s r o s e le'ssj.tfc^ici.|.in.othpr.recent,,monthsj r e f l e c t i n g , f o r t h e most p a r t a l a r g e dec l i n e ; in. s e c u r i t y l o a n s . . Bank h o l d i n g s of U, S. Government s e c u r i t i e s were reduced s u b s t a n t i a l l y , w h i l e h o l d i n g s of m u n i c i p a l and agency i s s u e s rpse-somewhat; more t h a n i n o t h e r r e c e n t months. A f t e r i n c r e a s i n g s h a r p l y i n t h e two p r e v i o u s m o n t h s , t h e money s u p p l y d e c l i n e d ^ l i g h t l y . Grpwth i n t i m e and s a v i n g s d e p o s i t s — s l o w i n g i n r e c e n t mpnt:hs^TContiny$d itP s l a c k e n d u r i n g F e b r u a r y . Seas o n a l l y a d j u s t e d t o t a l . a n d r e q u i r e d r e s e r v e s showed l i t t l e f u r t h e r c h a n g e . T h e r e was a . s m a l l r i s & i n e x c e s s r e s e r v e s , b u t a l a r g e r . i n c r e a s e in'member bank b o r r o w i n g r e s u l t e d i n an i n c r e a s e i n n e t borrowed r e s e r v e s . Changes t n Commercial Bank C r e d i t . Money Supply arid Tl'tfte D e p o s i t s (Seasonally adjusted) , T o t a l l o a n s arid i n v e s t m e n t s U. S. G o v ' t , s e c u r i t i e s Other s e c u r i t i e s , Annual r a t e ( p e r c e n t ) 1 1966 .... Jan. Feb. Feb. Jan. 4th Otr.' 6.3 0.4 12-2 10,9 -13.6 -23.0 -4.2 7.8 1,965 10.1 3rd ' 2 n d Qtr. Qtr. 1st Qtr. Year 10. 6 12.4 10.0 - 8 . 3 -12.8 -11.7 -6,2 13,3 • 20.0 14.5 15.2 .4.8 ?.4 18.7 11.5 3.0 20.0 12.0 7.0 16.4 20.8 14.8 19.0 11.8 % ? 15.5 11.7 19.4 26.1 19.4 Money s u p p l y 2.5 - 2.2 7.1 7.5 6.2 1V5 4.8 Time d e p o s i t s a t a l l commercial banks 7.3 8.2 15,0 16.8 17.4 16.1 Total loans Business loans 6.5 3.7 ' 11.5 Bank C r e d i t : . S e a s o n a l l y a d j u s t e d l o a n s and. i n v e s t m e n t s grew St a n e g l i g i b l e r a t e i h F e b r u a r y , f o l l o w i n g t h e v e r y r a p i d 1.2,2 p e r c e n t a n n u a l r a t e of growth i n J a n u a r y , E x p a n s i o n of t o t a l l o a n s o c c u r r e d a t a s l o w e r p a c e t h a n i n o t h e r r e c e n t p o n t h s , due l a r g e l y to, a, site a b l e decline in security loans. B u s i n e s s l o a n s a t a l l commercial b<ank$ r o s e by a b o u t h a l f of t h e u n u s u a l l y r a p i d December-J^hua.ry p a c e , b u t a t a 7^,:' r a t e c o m p a r a b l e t o t h a t of t h e second h a l f Qf 1965 < At c i t y b a n k s , t h e demand, f o r l o a n s by food p r o c e s s o r s and p e t r o l e u m and : c h e m i c a l companiesT-strp^g In January--continued vigorous during F e b r u a r y , Loan demand by t e x t i l e g r o u p s and p u b l i c u t i l i t i e s was a l s o s t r o n g , w h i l e .demand f o r bank c r e d i t by t r a d e c o n c e r n s , was a b o u t s e a s o n a l ; On t h e o t h e r h a n d , . loan..demand by m e t a l s g r o u p s a p p e a r e d w e a k . Real E s t a t e loans continued to,expand during February at a r a t e c o m p a r a b l e t o t h a t of r e c e n t months.•< The p a c e of constraier l o a n s was a l s o a b o u t t h e same a s i n 1965, f o l l o w i n g an u n u s u a l l y s m a l l r a t e of i n c r e a s e . . i n J a n u a r y - - p r o b a b l y a s s o c i a t e d w i e h t h e a d v e r s e f e f f e c t on s a l e s of u n f a v o r a b l e w e a t h e r . T h e r e was a s i z a b l e d e c l i n e of $900 m i l l i o n i n F e b r u a r y i n l o a n s t o b r o k e r s and Government s e c u r i t i e s d e a l e r s , t h e l a t t e r r e f l e c t i n g r e d u c t i o n s i n d e a l e r i n v e n t o r i e s . Loans t o nonbank f i n a n c i a l b u s i n e s s e s d e c l i n e d s l i g h t l y . I n t h e c a s e of b o t h s e c u r i t y l o a n s and loans t o n o n f i n a n e i a l b u s i n e s s e s , the February d e c l i n e s followed i n c r e a s e s i n . the...previous..month , . •; ...I • • ' Bank . h o l d i n g s . o f U. . S . Government s e c u r i t i e s d e c l i n e d $ 1 . 1 b i l l i o n i n F e b r u a r y , f o l l o w i n g a m o d e r a t e r e d u c t i o n i n J a n u a r y . The sizable, a d j u s t m e n t s i n , t h e .Governments-securities p o r t f o l i o r e s u l t e d . . l a r g e l y from c o n t i n u e d l a r g e b u s i n e s s - loan' demands, r e d u c e d r e s e r v e a v a i l a b i l i t y , and t h e abMftcg. of any s i g n i f i c a n t T r e a s u r y f i n a n c i n g o p e r a t i o n s i n F e b r u a r y . H o l d i n g s of m u n i c i p a l and agency i s s u e s , unchanged i n t h e p r o c e e d i n g month, r o s e $700 m i l l i o n i n F e b r u a r y - a somewhat f a s t e r r a t e t h a n i n o t h e r r e c e n t m o n t h s . Most of t h e i n c r e a s e d h o l d i n g s of m u n i c i p a l and agency s e c u r i t i e s o c c u r r e d a t . *. s m a l l e r b a n k s , w h i l e most of t h e l i q u i d a t i o n of T r e a s u r y i s s u e s was a c c o u n t e d f o r by l a r g e r b a n k s . Money s u p p l y and t i m e d e p o s i t s . The s e a s o n a l l y a d j u s t e d money s u p p l y d e c l i n e d $300 m i l l i o n i n F e b r u a r y i n c o n t r a s t t o t h e r a p i d e x p a n s i o n of t h e two p r e v i o u s m o n t h s . The F e b r u a r y d e c l i n e b r o u g h t t h e a n n u a l r a t e o f i n c r e a s e f o r 1966 down t o 2 . 5 p e r c e n t , only a t h i r d a s l a r g e as the high f o u r t h q u a r t e r r a t e . Commercial bank time and s a v i n g s d e p o s i t s r o s e $800 m i l l i o n i n F e b r u a r y , t h e r e b y c o n t i n u i n g t h e t r e n d i n r e c e n t months of s u c c e s s i v e l y s m a l l e r m o n t h l y i n c r e a s e s . I n February, t h e 6 . 5 p e r c e n t a n n u a l r a t e of e x p a n s i o n - - 1 , 7 p e r c e n t a g e p o i n t s below, t h e J a n u a r y r a t e - - w a s l e s s t h a n h a l f t h a t f o r t h e y e a r 1965. At w e e k l y r e p o r t i n g banks t h e i n c r e a s e 1 i n t o t a l t i m e and s a v i n g s d e p o s i t s ] w a s s m a l l , due t o an i n c r e a s e i n d e p o s i t s a t banks o u t s i d e New York o n l y s l i g h t l y l a r g e r t h a n a d e c l i n e i n t h e s e same d e p o s i t s a t r e p o r t i n g banks i n New Y o r k . A c o n t r a s e a s o n a l d e c l i n e i n s a v i n g s d e p o s i t s a t New York C i t y banks was o f f s e t o n l y i n p a r t a t banks o u t s i d e New Y o r k . O u t s t a n d i n g CD's of New York C i t y b a n k s d e c l i n e d i n F e b r u a r y , w h i l e o u t s t a n d i n g s of banks o u t s i d e New York r o s e enough t o more t h a n o f f s e t t h i s d e c l i n e . C o n s e q u e n t l y , o u t s t a n d i n g CD's a t l e a d i n g c i t y banks r o s e s l i g h t l y . Moderate growth i n t i m e d e p o s i t s o t h e r t h a n CD's was a c c o u n t e d f o r e n t i r e l y by b a n k s o u t s i d e New Y o r k . Bank r e s e r v e s . S e a s o n a l y a d j u s t e d t o t a l and r e q u i r e d r e s e r v e s i n c r e a s e d a n e g l i g i b l e amount f o l l o w i n g a m o d e r a t e r i s e i n J a n u a r y . E x c e s s r e s e r v e s i n c r e a s e d by a s m a l l amount, b u t member bank b o r r o w i n g a l s o r o s e , t h e combined e f f e c t of which was t o r a i s e n e t borrowed r e s e r v e s t o a l e v e l of a b o u t $100 m i l l i o n . R e s e r v e s were s u p p l i e d p r i n c i p a l l y t h r o u g h c u r r e n c y i n f l o w s and a b s o r b e d t h r o u g h a d e c l i n e i n F e d e r a l R e s e r v e f l o a t and o t h e r f a c t o r s . 1.4.3 - EXHIBIT A, Part 1 " L O A N S A N D 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 Billions dollars of 2*0 220 ."TOTAL LOANS A N r i N V I S T M I N T S 110 140 LOANS 1*0 U . S . G O V ! . SECURITHS *0 0 T H I R SECURITIES 19*3 19*2 Exhibit A - Part I I T o t a l 1/ Date (I n Loans 1/ b i 1 1 i o n s U.S. G o v ' t , securities of d o l l other securities a r s) 194.5 209.8 228.3 246.5 267.2 113.8 120.5 133.9 149.4 167.1 59.9 65.4 65.2 62.1 61.4 20.8 23.9 29.2 35.0 38.7 269.6 272.1 275.5 277.3 279.4 282.8 281.5 286.1 286.2 288.9 291.5 294.0 170.2 171.9 175.8 177.1 179.5 183.0 182.7 185.8 186.2 188.0 189.8 191.8 59.9 60.2 59.6 59.1 58.6 57.7 56.4 57.0 56.5 57.0 57.6 57.6 39.5 40.0 40.1 41.1 41.3 42.1 42.4 43.3 43.5 43.9 44.1 44.6 195.0 297.0 1966—Jan. 26 p 195.5 297.1 F e b . 23 p JL/ Adjusted t o exclude i n t e r b a n k l o a n s . 2/ Estimated as of December 31. p - Preliminary. 57.4 56.3 44.6 45.3 1960—Dec. 1961—Dec. 1962—Dec. 1963—Dec. 1964—Dec. 31 31 31 2 / 31 2 / 31 1965--Jan. 27 Feb. 24 Mar. 31 Apr. 28 May 26 June 30 J u l y 28 Aug. 25 Sept.29 Oct. 27 p Nov. 24 p Dec. 31 p 2/ 1.4.3. - EXHIBIT B. P e n ' Bitlio/i L O A N S AT ALL C O M M E R C I A L B A N K S l e t Wednesday el month, « e o . c o l l y of ; dollar*, odjyited BUSINESS RIAL ESTATE CONSUMER SECURITY 1960 1959 1961 Business Date (In 1962 | i i I I l I I | I I I I I I I IJXM. „44 1*63 Exhibit B - Part I I Real e s t a t e b i l l i o n Consumer of Security d o l l a r s ) 42.1 43.9 47.6 52.0 58.2 28.6 30.2 34.2 39.1 43.5 20.6 21.1 23.7 26.7 29.4 4.4 5.2 6.2 6.7 7.1 1965—Jan. 27 Feb. 24 Mar. 31 Apr. 28 May 26 June 30 J u l y 28 Aug. 25 Sept.29 Oct. 27 p Nov. 24 p Dec. 31 p i / 59.7 60.8 62.0 62.7 63.6 65.0 65.6 66.2 66.9 67.4 68.1 69.5 43.9 44.4 44.9 45.3 45.7 46.2 46.6 47.1 47.6 48.0 48.3 48.8 29.7 30.1 30.4 30.9 31.2 31.6 32.0 32.4 32.8 33.2 33.5 33.9 7.8 7.1 8.0 8.1 8.1 8.7 7.2 7.6 6.3 6.9 7.5 7.3 1966--Jan. 26 p F e b . 23 p 71.0 71.7 49.2 49.7 34.0 34.7 8.0 7.1 1960--Dec. 1961—Dec. 1962--Dec. 1963—Dec. 1964--Dec. 17 31 31 31 1 / 31 1/ 31 Estimated as of December 31. P " Preliminary. These d a t a a r e not f o r p u b l i c a t i o n . Exhibit C Changes i n Loans and I n v e s t m e n t s a t A l l Commercial Banks, S e a s o n a l l y A d j u s t e d ( I n b i l l i o n s of d o l l a r s ) 1966 1 9 6 5 Item Jan. p Feb. 1 +2.5 +3.0 +0.1 +0.6 1/ -0.2 -1.1 +0.4 +0.2 +0.5 1/ +0.7 +0.4 +1.8 : +1.8 +2.0 +3.2 +0.5 +0.6 +0.7 +0.5 +0.7 +1.4 +1.5 +0.7 +0.4 +0.5 +0.5 +0.4 +0.3 +0.5 +0.4 +0.5 +0.4 +0.4 +0.4 +0.4 +0.4 +0.3 +0.4 +0.1 +0.4 1/ +0.6 -1.5 +0.4 -1.3 +0.6 +0.6 -0.2 +0.7 -0.9 1/ +0.2 +0.4 1/ +0.2 +0.3 +0.1 +0.2 -0.2 +0.4 -0.1 +0.1 +0.2 +0.1 -0.1 +0.3 +0.1 1/ -0.2 1/ -0.1 +0.1 +0.1 +0.3 +0.3 1/ V +0.3 -0.1 +0.2 +0.1 1/ -0.1 1/ 1/ +0.1 +2.5 +2.4 +2.9 +1.8 +1.9 +2.9 +1.6 +2.0 +2.0 +1.2 +1.4 +2.0 +2.5 +1.7 +2.2 +2.3 +2.4 +1.8 +1.7 +2.5 +1.6 +1.8 +1.7 +1.1 +1.2 +2.2 +2.1 +1.8 Oct. p Nov. p Dec.p4/ +0.1 ±LZ +2J& +0.6 -0.5 +0.5 +0.3 +0.9 +0.2 +3.5 -0.3 +3.1 +0.9 +1.4 +0.6 +0.4 +0.4 +0.5 +0.3 +0.5 +0.3 -0.7 +0.9 +0.1 +0.3 +0.1 +0.5 Agriculture 1/ 1/ All other 1/ T o t a l loans excluding s e c u r i t y 3/ Total loans excluding s e c u r i t y and nonbank f i n a n c i a l 3/ Jan. Feb. Mar. Apr. May June July Aug. Sept. Loans and I n v e s t m e n t s 2 / +2.4 +2.5 +3.4 +1.8 +2.1 ± M - 1.3 +4.6 U. S. G o v ' t , s e c u r i t i e s -1.5 +0.3 -0.6 -0.5 -0.5 -0.9 -1.3 Other s e c u r i t i e s +0.8 +0.5 +0.1 +1.0 +0.2 +0.8 Loans 2/ +3.1 +1.7 +3.9 +1.3 +2.4 Business +1.5 +1.1 +1.2 +0.7 Real e s t a t e +0.4 +0.5 +0.5 Consumer +0.3 +0.4 Security +0.7 Konbank f i n a n c i a l NOTE--Individual loan i t e m s may n o t add t o change in t o t a l loans Because: u ; loan items a r e ui vaiua..xuu ; (2) l o a n items and t o t a l l o a n s a r e i n d e p e n d e n t l y s e a s o n a l l y a d j u s t e d . S e a s o n a l l y a d j u s t e d l o a n s , by c a t e g o r y , a r e e x p e r i m e n t a l and a r e s u b j e c t to revision. 1/ L e s s t h a n $50 m i l l i o n . "2/ A d j u s t e d t o e x c l u d e i n t e r b a n k l o a n s . 3/ D e r i v e d by a d d i t i o n of i t e m s and n o t by s u b t r a c t i o n from t o t a l l o a n s . • • • • • • • • • • Exhibit D Changes i n Loans and I n v e s t m e n t s a t A l l Commercial Banks, a t Weekly R e p o r t i n g Banks, and a t Other Banks, Not S e a s o n a l l y A d j u s t e d ( I n b i l l i o n s of d o l l a r s ) L a s t Wednesday of J a n u a r y t o l a s t Wednesday of F e b r u a r v Item 1966 1964 1963 +2.0 -1.0 +0.6 +1.6 +1.1 -0.6 +0.5 +1.0 1965 1961 +1.8 -0.9 . +0.4 +1.3 +1.5 . -1.2 +0.4 +0.7 +1.6 -0.6 +0.4 +1.4 +0.7 -1.8 -0.2 -1.3 +0.3 -1.2 A l l commercial banks Total loans U. S. G o v ' t , s e c u r i t i e s Other s e c u r i t i e s Total +0.9 -2.3 +0.7 -0.7 Weekly r e p o r t i n g banks Total loans U. S. G o v ' t , s e c u r i t i e s Other s e c u r i t i e s Total +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 +0.3 -0.5 +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 Other banks Total loans U. S. G o v ' t , s e c u r i t i e s Other s e c u r i t i e s Total +0.3 +0.1 ' 1960 1962 J U L -0.9 +0.4 -0.6 -0.2 -0.4 End of December t o end of F e b r u a r v Item 1966i/ 1 9 6 5 1 / 1 9 6 4 2 . / 1 9 6 3 2 . / 1962 i960 1961 • A l l commercial banks Total loans U. S. G o v ' t , s e c u r i t i e s . Other s e c u r i t i e s , , Total -3.7 -2.0 +0.2 -5.6 -1.6 -2.5 +0.9 3Z-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 Weekly r e p o r t i n g banks Total loans U. S. G o v ' t , s e c u r i t i e s Other s e c u r i t i e s , Total -3.2 -2.3 -0.3 -5.8 -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. -1.9 1/ +0.4 -1.5 -2.1 -2.2 -0.2 -4.4 Other banks Total loans U. S. Gov't." s e c u r i t i e s Other s e c u r i t i e s Total -0.5 +0.3 +0.5 +0.2 -0.3 -0.5 1/ -0.2 +0,2 -0.1 -0.3 +0.1 +0.2 -0.4 +0.3 1/ 1/ +0.2 -0.5 -0.2 -0.8 V -0.4 +0.2 4/-0.1 -1L -0.7 1) . -1.9 -2.7 -0.4 -5.2 NOTE—Data e x c l u d e a l l i n t e r b a n k l o a n s ; c a l l r e p o r t d a t a f o r weekly r e p o r t i n g banks used when a v a i l a b l e . 1 / Less t h a n $50 m i l l i o n . 2 / E s t i m a t e d a s of December 3 1 , 1965, and December 3 1 , 1962, @ f o r a l l commercial banks and weekly r e p o r t i n g banks and f o r a l l commercial b a n k s , December 3 1 , 1963. 3 / C r e d i t d e c l i n e u n d e r s t a t e d by $200 m i l l i o n , a b o u t e q u a l l y d i v i d e d between l o a n s and i n v e s t m e n t s , a s a r e s u l t of a c o r r e c t i o n f o r r e p o r t i n g e r r o r s i n one d i s t r i c t . 4 / C r e d i t i n c r e a s e o v e r s t a t e d by $200 m i l l i o n ; s e e f o o t n o t e 3 / . . Exhibit E Changes i n Commercial and I n d u s t r i a l Loans a t Weekly R e p o r t i n g Banks ( I n m i l l i o n s of d o l l a r s ) End of .Tannarv 1~n And nf Fphrnai B u s i n e s s of b o r r o w e r 1/ 1 Late s-December t o end of F e b r u a r v 2 / 1962 1963 1964 1965 1966 1966 1965 1964 1963 1962 Food p r o c e s s o r s Commodity d e a l e r s Trade concerns Total + 24 - 5 + 82 +101 - 76 + 54 +100 + 78 -126 -104 +109 -121 - 99 - 5 + 91 - 13 + - 75 30 32 73 - 24 + 10 -441 -455 -190 +128 * + 53 - 9 -426 -136 -286 -848 -304 + 14 -197 -487 -279 - 28 -153 -460 M e t a l s and p r o d u c t s Textiles, apparel, etc. Petroleum, coal, e t c . O t h e r m a n u f a c t u r i n g and mining Public u t i l i t i e s Construction A l l o t h e r t y p e s of b u s i n e s s Banker1s acceptances Other, mainly s e r v i c e s +117 +190 +147 +239 +115 +280 +185 +191 - 22 +140 +121 - 9 +172 +133 - 40 +151 + 85 +310 +311 + 97 +264 +266 + 88 + 96 + 11 + 83 - 60 - 32 +144 -102 + 14 - 1 + 1 + 36 + 6 + 30 +202 + 19 + 47 + 54 - 67 +121 + 8 -135 + 26 +161 + 43 +118 + 49 - 67 + 2 + 18 n.a. n.a. + 8 -140 - 2 + 64 n.a. n.a. +220 -132 - 29 +187 + 16 +171 +367 + 32 + 9 +174 -254 +428 + 34 -241 + 21 +250 n.a. n.a. +217 -250 - 65 - 27 n.a. n.a. +161 -374 - 19 + 12 n.a. n.a. Classified Unclassified +605 +197 +1,034 +158 +293 +102 +244 + 25 +123 + 72 +337 +211 +1,245 +128 -334 + 66 -577 - 25 -669 - 47 T o t a l change +802 +1,192 +395 +269 +195 +548 +1,373 -268 -602 -716 1/ 2/ Four most c o m p a r a b l e weeks used t h r o u g h o u t . Changes a r e c o m p i l e d f r o m December 22, 1965; December 2 3 , 1964; December 25, 1963; December 2 6 , 1962; December 2 7 , 1961; and December 28, 1960. D a t e s o t h e r t h a n l a s t Wednesdays of 1963 and 1964 were s e l e c t e d i n o r d e r t o a v o i d t u r n - o f - t h e - y e a r d a t i n g d i f f e r e n c e s . These d a t a c a n n o t be l i n k e d w i t h a l l commercial bank d a t a w h i c h a r e always f o r December 3 1 . 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 (est.) 169.3 184.4 184.2 184.2 189.5 198.5 214.4 233.6 58.2 66.4 60.9 60.9 58.9 61.0 66.6 66.4 17.9 20.6 20.6 20.6 20.5 20.9 23.9 29.3 93.2 97.5 102.8 102.8 110.0 116.7 123.9 137.9 40.5 40.4 42.5 37.8 40.2 43.1 45.2 49.1 23.1 25.3 26.9 26.9 28.1 28.7 30.3 34.3 4.2 4.7 4.1 4.1 4.9 5.1 6.2 7.3 4.1 5.0 5.0 5.0 5.0 5.7 6.2 7.1 15.8 15.9 17.5 17.5 18.8 20.6 21.4 23.7 5.9 7.1 7.1 7.3 8.5 7.2 8.2 8.8 7.6 8.1 8.7 9.8 10.7 1963—Dec. 31 ( e s t . ) 252.4 63.4 35.1 153.9 53.7 39.2 7.9 7.4 26.7 10.2 11.8 1964—Oct. 28 Nov. 25 Dec. 31 262.4 266.3 273.9 61.4 62.7 63.0 38.0 38.1 38.8 163.0 165.5 172.1 56.3 57.4 60.2 43.0 43.4 43.7 7.1 7.4 8.4 7.5 7.6 7.5 29.0 29.1 29.4 9.5 9.6 10.9 14.0 14.4 15.5 1965—Jan. Feb. Mar. Apr. May June 269.1 270.7 273.9 275.9 277.1 283.9 61.5 60.5 59.0 58.3 57.2 56.9 39.1 39.7 40.3 41.4 41.1 42.2 168.5 170.5 174.5 176.2 178.8 184.9 58.9 60.3 62.2 62.5 63.4 65.5 43.9 44.1 44.5 45.0 45.5 46.2 7.4 7.1 7.8 7.9 7.9 9.0 7.7 7.8 7.9 8.1 8.1 8.1 29.5 29.7 30.0 30.7 31.2 31.9 9.8 9.9 10.5 10.3 10.4 11.5 15.0 15.1 15.2 15.4 15.8 16.3 281.2 283.2 286.8 290.3 292.4 301.3 56.3 55.5 55.9 58.5 58.7 58.9 42.6 43.4 43.9 44.1 43.7 44.7 182.4 184.3 187.0 187.8 190.0 197.6 64.8 65.5 66.9 67.3 68.6 71.9 46.7 47.3 47.8 48.2 48.6 48.9 7.0 7.0 6.7 6.9 7.2 8.6 8.2 7.9 7.9 7.9 8.0 8.0 32.3 32.7 33.0 33.3 33.5 33.9 11.2 11.5 12.0 11.4 11.6 13.3 15.9 16.1 16.3 16.3 16.2 16.6 296.4 295.7 59.2 56.9 44.2 44.9 193.0 193.9 70.1 71.1 49.2 49.4 7.6 7.1 8.2 8.3 33.8 34.3 11.9 11.9 16.0 15.8 Date 1957—Dec. 1958—Dec. 1959—June June Dec. I960—Dec. 1961—Dec. 1962—Dec. 31 31 24 24 31 31 30 31 (old) (new) 1/ 27 24 31 28 26 30 July 28 Aug. 25 Sept.29 Oct. 27 p Nov. 24 p Dec. 31 p ( e s t . ) 1966—Jan. 26 p Feb. 23 p — 1 1/ ~ Structure^hanges in 1959, on balance through August, added almost $1 b i l l i o n t o t a l c r e d i t : $600 million in loans; $300 million in U. S. Government s e c u r i t i e s ; and $100 million in other s e c u r i t i e s . Real e s t a t e loans increased about $300 million; business loans $100 million; consumer loans §100 million; and other loans $100 million. NOTE—Data exclude interbank loans. Total loans are a f t e r and types of loans before deductions for valuation reserves. Consumer^and "other loans" are p a r t l y 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 c a l l dates. Beginning June 24, 1959, business loans and " a l l other loans" have been revised to exclude loans to nonbank financial i n s t i t u t i o n s . Individual loan category data are available f o r publication only on a June and December c a l l date b a s i s . Exhibit G Ratios t o Total Deposits 1/ U. S. Government s e c u r i t i e s maturing within one vear L0' A N S Date All commercial banks Total 1964—Oct. 28 Nov. 25 Dec. 31 31.2 31.1 35.8 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 60.4 60.7 60.5 31.3 30.9 36.1 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 61.6 62.0 61.9 1965—Jan. Feb. Mar. Apr. May June 60.9 61.6 61.9 62.4 63.3 63.6 62.2 63.0 63.3 63.7 64.6 64.9 July 28 Aug. 25 Sept.29 Oct. 27 p Nov. 24 p Dec. 29 p 63.7 64.1 63.9 63.8 64.3 64.2 1966—Jan. 26 p Feb. 23 p 64.0 64.9 65.0 65.5 65.3 65.2 65.9 65.7 65.6 66.6 1948—Dec. 1949—Dec. 1950—Dec. 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. 31 31 31 31 31 31 31 31 31 31 31 31 31 31 28 25 27 24 31 28 26 30 Member banks Reserve c i t v banks New York City of Other Chicago Citv 33.4 30.4 35.9 32.4 25.6 34.9 38.1 32.3 42.5 36.2 39.4 46.3 41.1 38.9 50.6 42.2 39.1 50.6 38.3 41.9 46.8 48.5 46.3 56.7 52 .7 52.7 61.7 53.3 55.2 61.9 49.4 51.3 57.7 58.2 58.2 67.3 59.0 60.8 65.9 57.7 58.0 65.0 60.1 61.4 67.9 63.3 62.1 67.4 Country All commercial banks 67.8 69.4 69.3 62.0 62.1 64.4 65.5 66.1 65.0 55.8 55.9 56.0 14.2 19.2 15.2 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 7.2 8.0 8.0 69.9 71.8 71.9 71.2 72.7 74.3 72.2 74.8 73.4 73.8 77.6 75.9 63.4 65.0 67.6 64.9 65.3 67.0 65.4 66.4 66.1 67.1 68.1 67.8 56.3 56.4 56.9 57.6 58.3 58.3 7.1 7.0 6.4 6.3 6.2 6.0 67.1 67.7 69.3 69.6 68.2 71.5 71.3 73.4 68.9 69.0 69.1 69.1 69.3 68.9 58.6 58.7 58.4 58.3 58.4 58.4 5.7 6.1 6.4 r7.1 7.3 7.4 69.2 70.6 58.1 58.5 7.6 n.a. 75.9 77.5 27.1 28.5 31.5 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 2/ 2/ 2/ 3/ j./ locax loans ^aujusteu iu cav,auuc awouo w » 9 within one year estimated on b a s i s of Treasury survey of ownership;and t o t a l deposits (adjusted t o exclude cash items in process of c o l l e c t i o n . ) 2/ P r i o r t o 1951, data are on c a l l b a s i s and beginning in 1951, they are on maturity b a s i s , ~ On a c a l l b a s i s , data f o r 1951 and 1952 are 21.5 and 19.1, r e s p e c t i v e l y . 3/ Estimated for December 31. NOTE: Comparability of f i g u r e s a f f e c t e d by changes in Federal Reserve membership, mergers, and by changes in the reserve c l a s s i f i c a t i o n of c i t i e s or i n d i v i d u a l banks. p - Preliminary. r - Revised. 1.4.3.-EXHIBIT H, Part 1 DEPOSITS AND CURRENCY AND TURNOVER OF DEMAND DEPOSITS S t o i o n o l l y o d j m t t d ; "*itu m o v e r , m o n t h l y lAnnual deposits, .monthly a v e r a g e s of daily figures; rote I I I I U I I I I LmLI I I I I I I I I I MONEY TIME AND SUPPLY SAVINGS DEPOSITS • ^ 2 2 4 SMSA'S 3 4 3 Center* TURNOVER Outside N Y C [U.S. G O V T . DEPOSITS * N o t a d j u i U d for s e a s o n a l IIIII I 9 6 0 1961 1962 196 3 I I I I I I II I I III 19 6 S 1964 Exhibit H - Part I I * AH commercial bonks ] S e a s o n a l l y Period Hon e y Total A d j u s S u p p ly Demand deposits Currency t e d D a t a uv s . Turnover Time and savings deposits outside N. Y. C i t y * deposits Gov't, 1963--December 1964—December 153.1 159.7 120.6 125.4 32.5 34.2 112.2 126.6 33.9 * 33.4 1965—February November December 159.7 165.7 167.4 125.1 129.6 131.2 34.7 36.1 36.3 131.0 145.5 147.0 34.6 37.0 37.5 5.1 5.5 5.7 4.0 4.5 1966--January February p 168.4 168.1 131.8 131.2 36.7 36.8 148.0 148.8 37.0 n.a. 3.7 5.1 Week ending: Feb. 2 9 16 23 p 167.9 168.1 168.3 167.6 131.2 131.3 131.5 130.8 36.7 36.9 36.8 36.8 148.4 148.4 148.8 149.0 n. a. n.a. n.a. n.a. 4.2 4.3 4.5 6.2 \ p - Preliminary. ^Beginning January 1964, d a t a a r e f o r 224 m e t r o p o l i t a n c e n t e r s o u t s i d e New York C i t y . F i g u r e f o r December 1964 on old b a s i s i s 3 5 . 3 . NOTE: D o l l a r amounts i n b i l l i o n s . 1.4.3 - EXHIBIT I, Part 1 TIME A N D S A V I N G S D E P O S I T S AT MEMBER B A N K S I N L E A D I N G C I T I E S Wednesday Billions figures of dollars I 70 TOTAL TIME AND SAVINGS DEPOSITS 60 | SO SAVINGS DEPOSITS TIME D E P O S I T S OF PARTNERSHIPS, AND OTHER TIME 40 INDIVIDUALS CORPORATIONS DEPOSITS - T - i — r r i' T i i' I i i i—i—i—i—i—i—i—i—i—i—i—i 1945 1944 : 19*3 Exhibit I - Part I I Time Period Total (I n and S a v i n g s Individuals partnerships, and c o r p o r a t i o n s Savings m l l l i o n s D e p o s i t s of Other time d e p o s i t s 1/ d o l l a r s ) 50,011 59,227 66,881 30.082 34,712 38.083 40,698 5,969 9,080 13,310 16,407 5,421 6,219 7,834 9,776 Nov. 24 Dec. 29 77,694 78,260 45.048 45,362 21,552 21.258 11,094 11,640 1966—Jan. 26 79,170 45,081 22,414 11,675 78,868 79,130 79,146 79,324 45,015 45,053 45.049 45,064 22.259 22,499 22,515 22,716 11,396 11,578 11,582 11,344 1 9 6 1 - •Dec. 1962- •Dec. 1963- Dec. 1964- •Dec. 27 26 31 30 41,472 1965—Feb. 24 Feb. 1/ 2 9 16 23 Includes S t a t e s and p o l i t i c a l s u b d i v i s i o n s , U. S . Government, f o r e i g n governments and o f f i c i a l i n s t i t u t i o n s , and i n t e r b a n k . Exhibit J Member Bank Reserves (Based on averages of d a i l y f i g u r e s ; i n m i l l i o n s of d o l l a r s ) Country All member All member Total reserves held seasonally adlusted All member Excess reserves Free reserves (excess r e s e r v e s minus borrowings) Date All member Resterve C i t y Banks C i t y of Other New York Chicago City Borrowings Monthly a v e r a g e s : 1956--December 1957—December 1958--December 195 9--December 1960--December 1961--December 1962--December 1963—December - 36 -133 - 41 -424 669 419 268 209 - 91 -105 - 80 -109 10 - 50 - 62 19 - 86 - 77 - 32 -104 - 4 - 22 - 11 - 21 -203 -228 -197 -449 80 20 - 52 -122 344 277 268 237 583 471 394 334 652 577 516 482 756 568 572 536 688 710 557 906 87 149 304 327 17,185 17,077 17,942 17,978 18,283 18,977 19,548 20,240 1964—October Novemeber December 106 - 34 168 - 34 - 86 - 14 - 26 - 16 - 31 -116 -178 -103 282 246 315 415 396 411 309 430 243 20,949 21,033 21,082 1965--January February March April May June 103 32 - 76 -112 -178 -185 - 70 - 90 - 97 - 50 - 13 -114 - 17 37 45 40 4 15 - 83 -144 -148 -239 -333 -274 273 302 215 217 172 214 402 437 340 359 327 343 299 405 416 471 505 528 21,174 21,355 21,506 21,722 21,671 21,840 -175 -136 -155 -149 - 82 - 11 -135 - 32 - 47 - 28 - 78 - 71 - 25 36 43 80 31 8 -214 -228 -246 -207 -177 -165 199 160 181 166 203 232 349 428 373 341 370 443 524 564 528 490 452 454 21,865 21,816 21,816 21,872 21,827/ 22,160 July Aug. Sept. Oct. Nov. Dec. 1 22,282 402 358 219 -141 - 4g - 74 1966—Jan. p - 44 22.306 478 374 130 - 26 -155 -105 - 75 Feb. p NOTE; Beginning J u l y 26, 1962, f i g u r e s f o r b o t h New York and t h e C i t y of Chicago i n c l u d e banks f o r m e r l y c l a s s i f i e d as c e n t r a l r e s e r v e c i t y and t h r e e banks whose c l a s s i f i c a t i o n as r e s e r v e c i t y i s c o n t i n u e d . p - preliminary. Exhibit K Liquid Assets Held by the Public - Seasonally Adjusted Series 1/ (Amounts in billions of dollars; ratios expressed as percentages) Time d e p o s i t s End of year or month Total Demand deposits and currency 2/ Commercial banks 3/ Mutual savings banks Postal Savings System U. S. Gov't, Savings savings and loan bonds 5/ shares 4 / U. S. Gov't, securities maturing w i t h i n one year 6/ 8 10 55.6 55.9 54.8 51.6 50.5 47.9 47.0 47.4 47.6 49.0 30.6 31.6 33.2 38.8 35.6 48.8 41.9 42.6 46.8 48.1 85.9 81.3 79.6 80.3 80.2 80.5 79.2 78.5 80.4 81.3 35.0 32.6 31.2 30.3 29.9 28.7 27.6 26.4 25.4 24.7 0.4 0.4 0.4 99.8 100.8 101.3 49.4 49.5 49.9 46.8 46.7 46.1 82.0 24.2 49.4 49.6 49.8 50.1 50.4 50.8 0.4 0.4 0.4 0.4 0.4 0.4 101.7 102.6 103.6 103.9 104.4 105.1 '50.0 49.9 49.9 49.9 49.9 50.0 46.8 47.3 47.6 48.6 47.6 48.0 81.5 23.8 81.5 23.5 138.3 139.8 141.6 144.0 146.5 147.1 51.1 51.3 51.6 52.0 52.3 52.5 0.4 0.3 0.3 0.3 0.3 0.3 105.5 106.5 107.7 108.3 109.2 109.7 50.1 50.1 50.1 50.1 50.1 50.5 47.9 49.8 48.7 49.1 49.4 48.6 81.3 23.3 SI.3 23.2 149.2 149.4 52.8 53.0 0.3 0.3 109.8 e110.3 50.5 50.3 51.2 49.4 320.2 332.5 343.2 356.0 373.1 393.9 399.2 424.6 459.0 495.4 130.2 133.3 134.6 133.5 138.8 139.7 138.4 142.6 144.8 149.6 48. 49. 52. 57. 65. 67. 73.1 82.5 98.1 112.9 26.3 28.1 30.0 31.6 33.9 34.9 36.2 38.3 41.4 44.5 1964 Oct. Nov. Dec. 523.4 526.9 530.4 155.0 155.0 156.7 123.8 125.9 127.1 48.3 48.6 49.0 1965 Jan. Feb. Mar. Apr . May June 534.9 536.4 542.8 543.3 543.0 550.2 156.1 154.8 158.6 156.3 155.4 159.6 130.6 131.9 133.0 134.1 134.9 136.3 July Aug. Sept. Oct. p Nov. p Dec. p 550.9 555.6 560.6 565.0 568.2 572.4 157.7 157.8 160.6 161.1 160.3 163.7 1966 Jan. p Feb. p 577.7 574.8 164.0 162.1 Ratios: Commercial Demand dep o s i t s and bank d e p o s i t s currency t o and currency t o gross n a t i o n - l i q u i d a s s e t s a l product 7/ ( 2 + 3 * 1 ) 27.2 32.0 37.0 41.7 47.7 54.3 61.8 70.5 79.8 90.9 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 For f o o t n o t e s s e e n e x t p a g e . Liquid assets to gross national product 7/ p - Preliminary 2.1 1.9 1.6 1.3 1.1 0.9 0.8 0.6 0.5 0.5 6 - Estimated. Bxhibit_K (Continued) 1. Excludes h o l d i n g s of t h e United S t a t e s Government, Government agencies and t r u s t f u n d s , dom e s t i c commercial banks, and F e d e r a l Reserve Banks. Adjusted to avoid double c o u n t i n g whenever p o s s i b l e . A l l s e r i e s a d j u s t e d f o r s e a s o n a l v a r i a t i o n by the X-9 v a r i a n t of Method I I developed by t h e Bureau of t h e Census. 2. Data a r e f o r demand d e p o s i t s a d j u s t e d and currency o u t s i d e banks and a r e as of t h e l a s t Wednesday of t h e month. In concept t h e f i g u r e s agree with t h e d a i l y average money supply d e s c r i b e d i n d e t a i l in t h e F e d e r a l Reserve B u l l e t i n f o r August 1962,p. 941, except t h a t demand d e p o s i t s h e l d by mutual s a v i n g s banks and by savings and loan a s s o c i a t i o n s have been deducted t o avoid double c o u n t i n g . Demand d e p o s i t s of commercial banks in Alaska and Hawaii a r e i n cluded b e g i n n i n g January 1959 and August 1959, r e s p e c t i v e l y , except t h a t one n a t i o n a l bank i n Alaska and one n a t i o n a l bank in Hawaii were included in April 1954 and A p r i l 1959, r e s p e c t i v e l y . Demand d e p o s i t s due t o banks in United S t a t e s p o s s e s s i o n s a r e included throughout . 3. T o t a l time d e p o s i t s a t commercial banks except i n t e r b a n k , U.S. T r e a s u r e r ' s open account, and p o s t a l s a v i n g s r e d e p o s i t e d i n commercial banks. Data are as of the l a s t Wednesday of month except June 30 and December 31 when c a l l d a t a f o r t h e s e d a t e s were used when a v a i l a b l e . Time d e p o s i t s of commercial banks in Alaska and Hawaii and time d e p o s i t s due t o banks in U. S. p o s s e s s i o n s a r e included as i n d i c a t e d f o r demand d e p o s i t s in f o o t n o t e 2 above. 4. F i g u r e s compiled by t h e F e d e r a l Savings and Loan Insurance Corporation except t h a t p r i o r t o 1955 d a t a a r e Board e s t i m a t e s based on monthly f i g u r e s of inflow of new s a v i n g s and w i t h drawal of savings c a p i t a l compiled by t h e F e d e r a l Home Loan Bank Board. 5. I n c l u d e s a l l t y p e s of s a v i n g s bonds held by i n v e s t o r s other than commercial and mutual savi n g s banks and U.S. Government a g e n c i e s and t r u s t f u n d s . Holdings of savings and loan a s s o c i a t i o n s a r e a l s o excluded beginning in February 1960, the e a r l i e s t d a t e f o r which s e p a r a t e figures for these i n s t i t u t i o n s are available. Figures a r e from d a t a compiled by t h e U. S. T r e a s u r y Department. 6. Beginning December 1950 f i g u r e s i n c l u d e Treasury marketable s e c u r i t i e s and F e d e r a l agency s e c u r i t i e s m a t u r i n g w i t h i n one y e a r , except h o l d i n g s of domestic commercial, mutual s a v i n g s , anA F e d e r a l Reserve Banks, Government a g e n c i e s and t r u s t f u n d s , and beginning February 1960, s a v i n g s and loan a s s o c i a t i o n s . F i g u r e s have been a d j u s t e d t o i n c l u d e p a r t i a l l y tax-exempt s e c u r i t i e s 12months p r i o r t o f i r s t c a l l d a t e , and p r i o r t o 1956, nonmarketable Treasury savi n g s n o t e s w i t h m a t u r i t i e s up to 36 months. P r i o r t o December 1950 f i g u r e s f o r m a r k e t a b l e i s s u e s i n c l u d e s e c u r i t i e s c a l l a b l e w i t h i n one y e a r . Figures r e p r e s e n t par v a l u e and a r e from t h e U. S. Treasury Department's Survey of Ownership of U. S. Government S e c u r i t i e s . 7. Gross n a t i o n a l p r o d u c t f i g u r e s a r e a v a i l a b l e q u a r t e r l y and annually only. Data f o r t o t a l l i q u i d a s s e t s used in computing t h e s e r a t i o s a r e q u a r t e r l y averages c a l c u l a t e d f o r f o u r d a t e s (each month of t h e _ c u r r e n t q u a r t e r and t h e l a s t month of t h e preceding q u a r t e r ) . # # # # # # # # # # #
@FedFRASER