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Vfv^Vi Pf Not for Publication : MAY zM p.vtH A y ^ ^':iTY May 15, 1968. IWod — Research Library — BANKING AND MONETARY DEVELOPMENTS IN APRIL 1968 Summary. Commercial bank credit increased substantially in April after declining somewhat in March. Rapid loan expansion--associated principally with strong business loan demand--was offset in part by reductions in holdings of U.S. Government and other securities. The money supply grew at a faster pace than earlier in the year. U.S. Government deposits declined sharply following a moderate reduction in March. Time and savings deposits rose much less than in the two previous months. Reductions in holdings of large negotiable CD's were heavy; savings deposits at weekly reporting banks declined more than usual and consumer-type time deposits rose only moderately. Net borrowed reserves rose further. Total and required reserves declined. Changes in Commercial Bank Credit 1/ Money Supply and Time Deposits (Seasonally adjusted) 1965 1966 Annual rate (per cent) Dec. 1967 ,967 to 1st 2nd Year half half Apr. 1968 Jan. March 968 Jan. Apr. Apr. Year Year 10.2 5.7 11.5 9.9 12.5 7.2 6.8 U.S. Govt. sec. -5.6 -6.3 11.0 6.3 15.2 -10.1 2.0 Other sec. 15.8 6.5 26.1 31.2 18.1 12.3 13.7 9.8 -1.9 Total loans 14.7 9.1 8.2 5.9 10.3 10.6 6.4 9.6 18.9 Business loans 18.8 13.3 9.8 10.9 8.2 12.7 7.0 10.1 19.1 4.7 2.2 6.5 6.8 6.0 5.8 4.2 5.3 8.5 16.0 8.8 15.9 17.4 13.2 5.8 6.1 5.1 1.9 Total loans and investments Money supply Time and savings deposits at all commercial banks 1/ 7.7 10.2 -2.0 -14.0 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 balances accumulated for the payment of personal loans excluded on June 9, 1966, as a result of change in Federal Reserve regulations affecting reserve requirements. Bank credit. Following a $1.2 billion decline in March, total loans and investments at all commercial banks increased $3 billion in April, less than the January-February average increase. So far this year, credit has increased at an annual rate of 7.7 per cent or considerably below the 12.5 per cent annual rate of expansion in the second half of 1967. In April, sharp loan expansion was offset in part by reductions in holdings of U.S. Government and other securities. Loan expansion (not adjusted for seasonal) at both weekly reporting and at other banks was larger than in April of any previous year. However, liquidation of U.S. Government securities was relatively large--especially at the smaller banks-and acquisition of other securities was small particularly at the large banks. Total loans increased $3.6 billion in April or at a high 19 per cent annual rate. Growth in business loans was almost three times as fast as in the first quarter of 1968. Loans to nonbank financial institutions, particularly finance companies, also rose substantially. This presumably was associated in part with the relatively high cost of commercial paper financing compared with the prime rate as well as with large run-offs of finance company paper during the mid-April tax period. Later in the month, however, following the increase in the prime rate, repayments were substantial. Real estate, consumer, and agricultural loans rose further over April. Security loans--especially those to U.S. Government d e a l e r s fluctuated considerably but declined on balance over the month. Following a pick-up in late March, business loans expanded at a rapid pace through the mid-April tax period, but after that the pace of the expansion slackened. Over the month, business loans increased $1.4 billion in April, or at an annual rate of 19 per cent. Over the April tax period, business borrowing was about the same as the advanced level in April 1967 although tax payments were higher. However, more tax bills were turned in for taxes this year than last, and, as indicated earlier, corporations presumably attained more funds through runoff of finance company paper. In April, growth in business loans at banks both in New York City and outside was far larger than in previous Aprils. Among industries, primary metals, retail and wholesale trade, textiles, mining, public utilities, and services were the largest borrowers. The increase in the mining category, however, reflected for the most part, borrowing by a large corporation to finance the acquisition of another firm. Holdings of bankers' acceptances declined much more than usual over the month. Almost half of the increase in outstanding business borrowing in April was in term loans which rose to 45.5 per cent of total classified business loans. In contrast, in April 1967, term loans had declined and the ratio to total business loans had dropped to 43.2 per cent. Even if the one large mining loan noted above were excluded, term borrowing was still substantial in April and was especially heavy in the metals industries—primary, machinery, and transportation equipment. U.S. Government security holdings declined $700 million in April following a $1.9 billion reduction in March. This two-month liquidation about offset the February increase which had been associated principally with the late-month Treasury note financing. So far this year, Governments have declined at an annual rate of about 2 per cent following growth at a 15 per cent annual rate in the second half of 1967. Reductions in holdings of Government securities were larger than usual (not seasonally adjusted) at both weekly reporting and at other banks in April. At weekly reporting banks, somewhat over half the reduction was in bills, presumably associated in part with the redemption of bank-held tax anticipation bills which matured late in the month. Holdings of "other securities declined slightly in April--one of the few monthly reductions on record in this series. Growth over the first four months of 1968 was at an annual rate of about 10 per cent-somewhat more than 1/3 the pace of 1967. At weekly reporting banks in April, holdings of short-term municipals, participations, and agency issues all declined compared with relatively substantial increases in April 1967; holdings of longer-term municipals increased only two-thirds as much this year as last. Money supply and time deposits. The money supply rose $1.3 billion in April following an average monthly increase of about $600 million over the first quarter of the year. Growth was unusually rapid through the week of April 17 but in the two following weeks the money supply declined sharply to about the March average. U.S. Government deposits were reduced substantially over April following a moderate decline in March. Time and savings deposits rose $300 million in April following increases of around $1.5 billion in both February and March. So far this year, these deposits have increased at an annual rate of 5.1 per cent--about a third as rapidly as in 1967. Negotiable CD's declined sharply in early April and over the midmonth corporate tax date, when banks had difficulty replacing maturing CD's at existing rate ceilings. Following the increase in Regulation Q ceilings on April 19, outstanding CD's increased somewhat. Savings deposits at weekly reporting banks declined more than usual over the month although withdrawals were not nearly as sharp as those following the interest crediting period in 1966. But there was also a much smaller offset to these outflows through growth in consumer-type time deposits, with the result that total consumer-type time and savings deposits declined more in April than in any month in recent years. Bank reserves. Total and required reserves declined in April following substantial growth earlier in the year. Net borrowed reserves averaged $360 million over the five weeks ending May 1, somewhat higher than the previous four weeks' average. Member bank borrowings rose further and excess reserves were about unchanged. Banking Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System. L4 3 - EXHIBIT A, Part 1 LOANS AND INVESTMENTS AT ALL COMMERCIAL BANKS Last Wednesday of month, seasonally adjusted Billions of dollars II II II I I I I1I1 II M I M M 4 0 0 TOTAL LOAM S AND INVES FMENTS - 300 - intuc 200 LDANO - 100 U.S. GOVT. SECURITIES I 1 OTHER SECURITIES 1962 1963 1964 1965 1966 11 n i i i i i i i 1967 1 I 1968 Exhibit A - Part II Loans and Investments at All Commercial Banks (Seasonally Adjusted) Date Total 1/ (In U.S. Gov 1 1. securities Loans 1/ b i l l i o n s of Other securities d o l l a r s ) 1962—Dec. 1963--Dec. 1964--Dec. 1965--Dec. 31 2/ 31 2/ 31 31 227.9 246.2 267.2 294.4 134.1 149.7 167.7 192.4 64.5 61.5 60.7 57.3 29.2 35.0 38.7 44.8 1966--June July Aug Sept. Oct. Nov. Dec. 30 27 31 28 26 30 31 306.8 3/ 307.5 309.9 309.4 308.9 309.3 310.2 203.4 3/ 204.5 205.8 206.2 207.2 207.5 207.8 54.9 54.5 56.0 54.9 33.4 53.4 53.7 48.5 3/ 48.5 48.0 48.3 48.4 48.4 48.7 1967—Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec . 25 22 29 26 31 30 26 30 27 25 29 30 314.4 318.0 321.4 323.2 324.6 325.6 332.4 337.3 339.5 342.6 344.4 • 345.9 • 210.4 211.0 211.3 213.5 213.5 213.9 217.1 218.2 220.? 221.8 222 .3 224.9 54.2 55.9 57.8 56.1 56.1 55.4 58.8 61.8 61.6 62 .3 61.8 59.6 49.9 51.1 52.3 53.6 55.0 56.3 56.5 57.3 57.? 58.6 60.3 61.4 31 349.0 • 227.5 59.1 62.4 Feb. Mar. 28 27 P 353.0 •• 351.8 * 228.7 228.5 61.8 59.9 62.6 , 63.5 Apr. 24 P 354.8 232.1 59.2 63.4 1 9 6 8 — Jan. \J 2/ 3/ i Adjusted to exclude interbank loans Estimated as of December 31. Beginning June 9, loan data exclude J?l.l 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. 1.4.3 EXHIBIT B, Part 1 LOANS AT ALL COMMERCIAL BANKS Last Wednesday of month, seasonally adjusted Billions of i 11 11 I I I I 1 1 1 1 I ! I I 1 I I I I — BUSINESS - — REAL EST i - — i CONSUIWEI — 1 1 i SECURITY e # 1965 1964 1963 1962 e e # 1966 e i i i i i i 11 M i 111 i I I i 1111 1968 1967 # # '• dollars Exhibit B - Part II Loans at All Commercial Banks Seasonally Adjusted Business Date (In Consumer Real Estate b i l l i o n s of Security d o l l a r s ) 47.6 52 .0 58.4 69.4 78.6 34.2 39.1 43.6 49.2 53.8 23.7 27.2 31.1 35.7 38.8 6 .2 6.7 7.1 7.4 7.9 1967--Jan. 25 Feb. 22 Mar . 29 Apr. 26 May 31 June 30 July 26 Aug. 30 Sept.27 Oct. 25 Nov. 2 9 Dec. 31 79.5 54.1 54.3 54.5 54.7 55.0 55 .3 55.7 56.2 56.7 57 .2 57 .8 58.4 39.0 39.1 39.2 39.4 39.4 39.6 39.8 40.0 40.3 40.6 40.9 41.0 8.4 8.3 8.3 8.1 7 .9 7.2 8.9 9.3 9.7 10.0 9.5 9.2 1968--Jan. Feb. Mar. Apr. 86 .5 87.0 87 .8 89.2 58.9 59.5 41.4 41.9 r 42.1 42.4 10.0 1962--Dec 1963--Dec 1964--Dec 1965--Dec 1966--Dec 1/ . . . . . 31 1/ 31 1/ 31 31 31 31 28 27 p 24 p 80.1 80.8 81.7 82 .3 82.9 83.7 83.9 84.2 84.4 84.7 86.3 Estimated as of December 31. 60.0 60.6 p - Preliminary These data are not for publication 10.3 9.0 8.6 r - Revised Exhibit Changes in Loans and Investments at All Commercial Banks, Seasonally Adjusted (In billions of dollars) Item 19 6 7 Mar . Apr . May June July Aug. Sept. Oct. Nov. Dec . Jan. Feb. Mar. | Apr. Loans and Investments 2/ +3.4 +1.8 +1A +L0 +6 .8 +4.9 +2.2 +3.1 +1.8 +1.5 +3.1 +4.0 -1.2 I +3.0 U. S. Gov't, securities +1.9 -1.7 1/ -0.7 +3.4 +3.0 -0.2 +0.7 -0.5 -2.2 -0.5 +2.7 -1.9 j -0.7 Other securities +1.2 +1.3 +1.4 +1.3 +0.2 +0.8 +0.4 +0.9 +1.7 : +1.1 +1.0 +0.2 +0.9 1 -0.1 Loans 2/ +0.3 +2.2 1/ +0.4 +3.2 +1.1 +2.0 +1.6 +0.5 | +2.6 +2.6 +1.2 -0.2 I +3.6 Business +0.7 +0.9 +0.6 +0.6 +0.8 +0.2 +0.3 +0.2 +0.3 +1.6 +0.3 +0.5 Real estate +0.2 +0.2 +0.3 +0.3 +0.4 +0.5 +0.5 +0.5 +0.6 | +0.6 +0.5 +0.6 Consumer +0.1 +0.2 +0.2 +0.2 +0.2 +0.3 +0.3 +0.3 i +0.1 +0.4 Security 1/ -0.2 -0.2 -0.7 +1.7 +0.4 +0.3 +0.3 -0.5 ; -0.3 -0.4 +0.2 -0.1 -0.2 -0.1 1/ +0.3 +0.3 -0.2 Nonbank financial y | | i +0.8 +1.4 +0.5 +0.6 +0.5 r+0.2 +0.3 +0.8 +0.5 -1.3 1 -0.4 -0.3 +0.1 -0.4 1/ : i i +0.5 | i Agriculture +0.2 1/ +0.1 +0.2 +0.1 +0:1 1/ 1/ -0.1 +0.2 i/ +0.1 j y All other -0.5 +0 * 9 -0.7 1/ +0.1 -0.2 +0.3 i/ +0.1 +0.7 +0.5 -0.4 i r-0.4 Total loans excluding security 3/ +0.3 +2.4 +0.2 +1.1 +1.5 +0.7 +1.7 +1.3 +1.0 +2.9 +1.8 +0.9 i +1.1 +0.7 +2.2 +0.3 +1.3 +1.6 +0.7 +1.4 +1.0 +1.3 j +i.i Total loans excluding security and nonbank financial 3/ | +1.2 +3.2* +1.7 1 1/ 2_/ Less than $50 million. Adjusted to exclude interbank loans. 3/ At large banks on a last Wednesday basis, bankers' acceptances decreased $148 million in April 1968, compared with a decline of $24 million in April 1967 and an increase of $21 million in April 1966. +0.2 +1.0 | ; +4.0 +3.6 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) Last Wednesday of March to last Wednesday in April Item * * * 1968 1967 1966 1965 1964 1963 1962 All commercial banks Total loans U. S. Gov't, securities Other securities Total +3.9 -1.5 +0.7 +3.0 +2.1 -1.6 +2.0 +2.4 +2.2 +0.1 +1.1 +3.2 +1.7 -0.7 +1.1 +2.0 +1.9 -1.4 +0.2 +0.7 +0.5 -0.8 +0.7 +0.4 +1.4 +0.3 +0.7 +2 .4 Weekly reporting banks 3/ Total loans U. S. Gov't, securities Other securities Total +2.0 -0.9 +0.3 +1.4 +0.7 -1.5 +1.4 +0.6 +1.1 +0.4 , +0.7 +2.2 +0.4 , -0.5 +0.7 +0.7 +0.8 -1.1 1/ -0.3 -0.2 -0.8 +0.6 -0.4 +0.4 -0.1 +0.6 +0.9 Other banks 3/ Total loans U. S. Gov't, securities Other securities Total +1.9 -0.6 +0.4 +1.6 +1.4 -0.1 +0.6 +1.8 +1.1 -0.3 +0.4 +1,0 +1.3 -0.2 +0.4 +1.3 +1.1 -0.3 +0.2 +1.0 +0.7 1/ +0.1 +0.8 +1.0 +0.4 +0.1 +1.5 1954 1963 1962 +0.8 -3.3 +0.7 -1.8 -1.0 -2.4 +2.1 -1.3 +0.1 -1.9 +2.2 +0.4 # End of December to'end of April Item 1968 1967 1966 1965 ' ^ — ^ All commercial banks Total loans U. S. Gov't, securities Other securities Total . +0.3 -2.9 +2.3 -0.4 -0.6 1/ +5.2 +4.6 +2 .4 -4.0 +1.6 -0.1 Weekly reporting banks 3/ Total loans U. S. Gov't, securities Other securities Total -1.0 -2.7 +1.5 -2.2 -2.3 +0 .1 +4.4 +2.2 +1.0 -3.1 +0.7 -1.3 Other banks 3/ Total loans U. S. Gov't, securities Other securities Total +1.3 -0.2 +0.8 +1.8 +1.7 -0.1 +0.8 +2.4 +1.4 -1.0 +0.9 +1.2 +4.1 -4.7 +2 .6 +2.0 • x +2.1 -3.7 +1.8 +0.2 -0.8 -2 .3 +0.4 -2.8 -2.2 -1.7 +1.5 -2 .3 -1.0 -2.1 +1.8 -1.4 +2.0 -1.0 +0.8 +1.8 +1.6 -1.0 +0.3 +1.0 +1.2 -0.7 +0.6 +1.0 +1.1 +0.1 +0.4 +1.8 2/ Data exclude all interbank loans; call report data for large banks used when available. Less than $50 million Based on estimated data for December 31, 1963, and 1962, for all commercial 3/ banks and for December 31, 1962, for large banks. Based on revised coverage beginning July 1966, January 1967, and January 1968 NOTE: 1/ Exhibit E Changes in Commercial and Industrial Loans at Large Commercial Banks (In millions of dollars) 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. Pettoleum Chemicals Other durable manufacturing Other nondurable manufacturing Mining Public Utilities, total Transportation 3/ Communication 3/ Other public utilities Construction All other types of business Bankers acceptances Services 3/ Other Foreign business concerns 3/ Classified Unclassified Total Change 1/ 2/ 3/ 1968 p 131 107 + 271 + 155 + 116 + 166 + 89 + 77 49 + 49 + 67 _ 7 + 90 + 49 + 24 + 182 + 123 + 84 + 37 2 + + 49 + 167 148 + 97 + 218 8 + 935 + 221 +1 ,156 1967 - + + + + + - + - + - + - + + + - + + - + + - + + + 68 84 164 137 27 43 26 89 220 62 2 24 158 23 58 83 90 50 58 18 51 76 24 10 90 15 255 128 383 Late December to late.Ai2lJJ—2/ to 1 ate Anril 1/ 1 1965 1966 ..ate Marc - + + + - + - + + + - + + 120 110 240 189 51 32 1 59 18 8 3 6 116 38 31 —• — - + + + + - + - - + + + + - + + - + + + + 296 n.a. n .a. n.a . 17 + 119 21 n.a. 98 n.a. 232 87 + 145 - 147 179 10 65 55 54 24 37 29 22 33 27 63 50 57 11 6 n.a. n.a. n.a. 77 86 19 n.a. 67 n.a. 110 87 23 - + - + + + + - + - - - + - 1964 1968 157 140 5 2 7 60 3 28 26 3 32 16 5 18 23 25 19 n.a. n.a. n.a. 57 40 31 n.a. 9 n.a. 341 90 251 425 382 + 250 + 127 + 123 + 736 + 351 + 317 41 + 109 + 392 20 + 206 69 + 38 + + 579 221 + 231 35 417 + 91 + 328 268 + 278 + 318 56 4-1,587 + 264 4-1,831 - - 1966 1967 - 540 229 3 47 + 44 +1.028 + 126 + 691 + 6 + 205 + 209 + 37 + 466 + 34 + 111 + 111 77 + 138 + 124 - 339 56 + 322 + 212 - 132 + 242 + 78 +1,491 + 107 +1,598 326 159 199 210 + 530 + 235 + 349 + 178 + 181 + 57 + 836 + 555 + 116 + 154 + 494 + 154 + 35 + 143 + 191 + 104 + 281 + 328 + 139 + 143 + 253 + 214 + 193 + 194 + 154 + 124 + 229 + 118 21 419 n.a . n.a. n.a . n.a. n.a. n.a. + 79 + 53 + 35 + 361 326 20 . + n.a. n.a. + 361 + 341 n.a. n.a. +21,183 +1,537 + 295 + 329 +2' ,478 +1,866 - 1964 - - Four most comparable weeksi used throughout. December 27, 1967; December 28, 1966; December 29, 1965; December 30, 1964 and Changes are compiled from December 25, 1963. These Prior to 1967, transportat 1965 ^ - + + + - + + - + + + + - + + - + + 599 382 95 59 36 387 70 247 16 85 157 34 177 78 29 82 350 n.a. n.a. n.a. 112 339 n.a. n.a. n.a. n.a. 99 298 199 Exhibit F Loans and Investments at All Commercial Bank* (In billions of dollars) Date 1957--Dec. 1958—Dec. 1959—Jun. Jun. Dec. 1960—Dec. 1961--Dec. 1962—Dec. 1963—Dec . 1964—Dec. 1965—Dec. 31 31 24 24 31 31 30 31 31 31 31 Loans and investments U. S. Gov't. Other securities Total loans Business Real estate Security 169.3 184.4 184.2 184.2 189.5 198.5 214.4 233.6 252.4 273.9 301.8 58.2 66.4 60.9 60.9 58.9 61.0 66.6 66.4 63.4 63.0 59.5 17.9 20.6 20.6 20.6 20.5 . 20.9 23.9 29.3 35.1 38.8 44.9 93.2 97.5 102.8 102.8 110.0 116.7 123.9 137.9 153.9 172.1 197.4 40.5 40.4 42.5 37.8 40.2 43.1 45.2 49.1 53.7 60.2 71.4 23.1 25.3 26.9 26.9 28.1 28.7 30.3 34.3 39.2 43.7 49.3 4.2 4.7 4.1 4.1 4.9 5.1 , 6.2 7.3 7.9 8.4 8.5 1966—Jul. 27 Aug. 31 Sept.28 Oct. 26 Nov. 30 Dec. 31 306.9 2 207.4 308.8 308.0 309.0 317.9 52.7 53.7 53.6 53.6 54.4 56.2 48.6 3/ 48.4 48.8 48.7 47.9 48.8 205.6 2/5 205.2 206.4 205.8 206.7 213.0 77.1 76.7 77.9 78.0 78.6 80.6 52.3 52.8 53.2 53.6 53.8 54.0 1967—Jan. Feb. Mar. Apr. May Jun. 25 22 29 26 31 30 313.8 314.5 320.1 322 .5 323.6 329.5 56.0 56.6 57.8 56.2 55.8 54.2 49.4 50.7 52.0 54.0 54.7 56.7 208.5 207.2 210.3 212.4 213.1 218.6 78.9 79.1 81.1 81.8 81.7 84.6 Jul. 26 Aug. 30 Sept.27 Oct. 25 Nov. 29 Dec. 30 331.8 334.2 338.8 341.6 344.1 354.5 57.1 59.1 60.1 62.4 62.9 62.5 56.7 57.8 58.3 59.0 59.8 61.5 218.0 217.3 220.4 220.2 221.5 230.5 350.1 350.6 351.1 354.1 62.2 63.2 61.1 59.6 61.7 62.2 63.1 63.8 226.1 225.2 226.9 230.8 1968—Jan. Feb. Mar. Apr. (old) (new) 1/ (est.) (est.) 31 28 27 p 24 p Farm Consumer Nonbank financial insti tii11 onq 4.1 5.0 5 .0 5.0 5.0 5.7 6.2 7.1 7.4 7.5 8.2 15 .8 15.9 17 .5 17.5 18.8 20.6 21.4 23.7 27.2 31.0 35.8 5.9 7.1 7.1 7.3 8.5 10.2 10.9 13.3 7 .2 8 .2 8 .8 7 .6 8.1 8.7 9.8 10.7 11.3 13.9 14.9 7.2 7.7 7.0 6.8 6.8 9.0 8.6 3/ 8.6 ~~ 8.6 8.6 8.7 8.6 38.1 38.5 38.5 38.5 38.7 38.9 12.8 12.0 12.5 11.9 11.9 13.3 13.5 2/3/ 13.1 12.8 12.5 12.4 13.0 54.0 54.0 54.1 54.4 54.8 55.3 8.5 7.6 8.3 8.3 8.1 8.2 8.6 8.7 8.9 9.1 9.2 9.3 38.7 38.6 38.7 39.1 39.4 39.9 11.7 11.3 11.5 11.6 11.3 12.2 12.4 12.2 12.1 12.4 12.9 13.5 84.1 82.6 84.0 83.8 84.6 88.5 55.8 56.4 57.0 57.5 58.1 58.5 8.5 9.1 9.3 9.2 8.7 10.5 9.4 9.4 9.3 9.3 9.2 9.3 40.2' 40.5 40.6 . 40.7 40.9 41.1 11.4 11.2 12.0 11.5 . 11.3 12.5 13,0 12.6 12.7 12.6 13.2 14.9 85.7 86.0 87.9 89.4 58.8 59.1 59.5 60.2 10.8 • 9.9 9.0 8.9 9.4 9.6 9.7 9.9 41.1 41.3 41.5 42.t 1 r NOTE: 11.3 10.9 11.1 11.5 ' _w 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. r - Revised c - Corrected . 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 $100 million; and other loans $100 million. 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 ." All other Individual loans category data are available for publication only on a June and December call data basis. 13.8 13.1 13.0 13.4 . Exhibit G Ratios to Total Deposits V U.S. Government £ securities maturing within one year L O A N S Member banks All Reserve.city banks commercial Total New York City of Other banks City Chicago Date Country 1951--Dec. 31 1952--Dec. 31 1953--Dec . 31 1954—Dec . 31 1955—Dec. 31 1956—Dec. 31 1957—Dec. 31 1958—Dec. 31 1959--Dec. 31 1960—Dec. 31 1961—Dec. 31 1962—Dec . 28 1963—Dec. 25 1964--Dec. 31 1965—Dec. 31 1966—Dec. 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 63.7 65.8 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 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 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 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 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 1967—Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. 65.6 65.3 65.1 65.1 65.1 65.6 65.1 64.9 64.6 64.0 64.1 63.8 67.6 67.2 66.9 66.8 66.6 67.3 66.2 66.5 66.3 65.5 65.7 65.8 81.8 81.8 81.2 80.9 80.0 82.1 81.5 81.0 79.8 77.8 78.7 79.9 75.8 74.8 73.4 72.1 70.9 74.0 72.3 71.4 72.2 70.7 71.0 70.8 70.4 69.5 68.7 68.3 68.3 68.6 67.8 68.4 68.3 67.7 68.3 68.1 59.3 59.3 59.5 59.8 59.9 60.0 59.6 60.4 58.8 58.6 58.4 58.2 63.9 63. 8 64.6 65.5 65.6 65.5 66.4 67.4 80,2 79.7 81.8 84.4 70.0 70.3 75.1 75.6 67.4 67.5 68.6 69.8 58.2 58.2 58.3 58.9 25 22 29 26 31 30 26 30 27 25 29 27 1968—Jan. 31 Feb. 28 Mar. 27p Apr. 24 p All commercial banks 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 7.3 6.1 r r r r r r r r r 6.2 5.5 5.5 5.2 4.6 4.4 5.2 5.7 5.8 6.4 6.5 6.6 # e @ # 6.5 6.1 5.6 n.a. "1 K i 1 -f- 4- -f <-»« . "NT f*Y 1 'TP • P r\mr\ i v o 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. 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.) —/ Beginning in June, 1966 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 June the ratio for all commercial banks would bs http://fraser.stlouisfed.org/ 66.3 compared with 66.0 on the current basis. Federal Reserve Bank of St. Louis # # # • L .4.3 DEPOSITS AND CURRENCY AND TURNOVER Seasonally Annual adjusted, deposits, monthly averages of daily figures, - EXHIBIT H, Part 1 OF DEMAND DEPOSITS turnover, monthly rate Billions of dollars n I I M II I I 111 M I IIIIIII 55 180 MONEY SUPPLY 50 160 45 140 TIME AND SAVINGS DEPOSITS ' 40 All commercial banks . / - 232 120 ' V SMSAS 35 100 TURNOVER Outside 343 N.Y.C Centers 30 80 U.S. GOVT. DEPOSITS 10 Member 10 banks 11111 n 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1962 1963 1964 1965 1966 1967 1968 0 Chart on revised basis for Money Supply, Time and Savings Deposits, and U.S. Gov. Deposits beginning July 1967. Exhibit H - Part II S e a s o n a l l y M o n e y P e r i o d Total S u p p 1 y Demand deposits Currency A d j u s t e d Time and V savings deposits (all commercial) D a t a U.S. Gov 1 1. deposits (all member) Turnover outside N.Y. City ' (per cent] 1964--December 1965-^December 1966—December 159.3 166.8 170.4 125.1 130.5 132 .1 34.2 36.3 38.3 126.6 146.9 158.6 5.1 4.2 3.2 33.3 37.4 40.0 1967--July August September October November December 177.9 179.1 179.2 180.3 181.2 181.5 138.4 139.6 139.5 140.3 141.2 141.1 39.5 39.6 39.8 39.9 40.0 40.4 174.6 177.2 178.9 180.8 182.5 183.3 3.2 3.7 4.5 5.6 5.3 4.4 40.7 4111 40.8 40.8 41.2 41.1 1968—January February p March p April p 182.5 182.5 183.4 184.7 414.9 141.8 142.3 143.3 40.5 40.7 41.1 41.4 183.7 185.0 186.6 186.9 5.3 6.9 6.5 5.1 41.6 42.1 41.6 n.a. Week ending: April 3 10 17 24 184.4 184.3 187.0 184.1 143.2 142.9 145.5 142.8 41.2 41.4 41.5 41.3 187.0 187.1 187.0 186.6 5.4 5.3 4.9 5.4 n.a. n„a. n.a. n.a. NOTE: Dollar amounts in billions. p - Preliminary r - Revised * - Beginning January 1964, data for 232 metropolitan centers outside New York City 1/ Beginning on JuiW 9; 1966ry time*de|*bsit data exclude $1.1 billion, of balances accumulated £&>r i the payment of personal loans. L .4.3 - EXHIBIT I, Part 1 TIME AND SAVINGS DEPOSITS AT LARGE COMMERCIAL BANKS Wednesday Billions figures of d o l l a r s 100 TOTAL TIME AND SAVINGS DEPOSITS 80 60 SAVINGS DEPOSITS TIME DEPOSITS 40 TIME [ EPOSITS EXCLUDING LARGE CD's 20 LARGE CD's i 1965 i i 1966 1967 1968 Exhibit I - Part II Large Commercial Banks T i m e a n d S a v i n g s P e r i o d Total V Savings (I n 1961--Dec. 1962--Dec. 1963--Dec. 1964--Dec. 27 26 31 30 m i l l Time V i o n s 41,472 50,011 59,227 66,881 30,082 34,712 38,083 40,698 11,390 14,299 21,144 26,183 73,672 80,467 43,137 48,314 1965--Dec. 29 85,298 1966--Dec. 28 (Old) Dec. 38 (New) 5/ 1967--Apr. 26 D e p o s i t s Large certificates of deposit of 2/ Time other 1/ than large certificates of deposit d o 1 1 a :r s ) 2,782 5,442 9,579 12,585 8,608 9,857 11,565 13,598 30,535 34,153 15,203 15,587 15,332 16,566 50,694 34,604 16,251 18,353 89,495 89,639 47,099 47,213 42,396 42,426 15,659 15,642 26,737 26,784 89,060 48,711 40,349 17,700 22,649 1967--Sept.27 Oct. 25 Nov. 2 9 Dec. 27 (Old) Dec. 27 (New) 101,659 102,173 102,969 102,809 102,991 48,349 48,428 48,533 48,647 48,781 53,310 53,745 54,436 54,162 54,210 19,897 20,107 21,131 20,330 20,330 33,413 33,638 33,305 33,832 33,880 1968--Jan. 31 Feb. 28 Mar. 27 104,178 104,961 105,133 48,516 48,620 49,120 55,662 56,341 56,013 20,920 20,094 20,554 34,742 35,247 35,459 104,696 104,497 103,780 104,231 49,006 48,780 48,485 48,420 55,690 55,717 55,295 55,811 20,307 20,196 19,499 19,785 35,383 35,521 35,796 36,026 1965--July July Apr. 1/ 2J 3/ 4/ 5/ 7 (Old) 7 (New) 5/ 3 10 17 24 3/ 4/ Beginning June 15, 1966, data exclude $400 million of balances accumulated for the payment of personal loans, Negotiable certificates of deposit issued in denominations of $100,000 or more, Estimated. As of December 5, 1962. 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 Citv Banks City of New York Chicago Citv 1 Excess Reserves Other Country All member Borrowings All member Total reserves held seasonally adjusted All member Monthlv Averages: 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 17,866 17,903 18.223 18,961 19,596 20,259 21,096 22,186 1966--Oct. Nov. Dec . -431 -222 -165 -124 - 71 - 95 - 95 - 24 - 50 -246 -245 -159 34 118 140 302 389 392 733 611 557 22,490 22,431 22,415 1967--Jan. Feb. Mar . Apr . May June July Aug. Sept Oct. Nov. Dec . - 16 - 4 236 175 269 297 272 298 268 160 270 107 - -123 - 64 - 15 - 20 1 - 3 - 15 4 3 4 11 - 5 - 80 - 84 13 - 38 - 9 33 12 16 - 6 - 24 14 - 55 233 211 306 242 266 258 254 271 231 191 222 187 373 358 435 309 370 420 359 387 358 286 403 345 389 362 199 134 101 123 87 89 90 126 133 238 22,774 22,992 23,407 23,456 23,448 23,612 23,835 24,104 24,297 24,608 24,765 373 399 356 277 237 361 671 683 25,009 25,257 25,303 25,126 1968--Jan. Feb". Mar . Apr. p 136 38 -315 -406 46 67 68 10 12 7 20 6 39 - 10 23 - 22 9 - 57 - 13 - 59 - 2 2 - 59 -106 - 83 - 73 -253 -260 230 166 11 20 24,620 1/ 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 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/ 7 U. S. Gov't, securities maturing within one year 6/ 8 30.6 31.6 33. 2 38.8 35.6 48.8 41.9 42.6 46.8 48.1 46.1 48.6 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 320.2 130.2 48.2 26.3 2.1 27.2 55. 6 332.5 343.2 356.0 373.1 393.9 399.2 424.6 459.0 495.4 530.5 573.0 133.3 134.6 133.5 138.8 139.7 138.4 142.6 144.8 149.6 156.7 164.0 49.7 52.0 57.5 65.4 67.4 73.1 82.5 98.1 112.9 127.1 147.1 28.1 1.9 30.0 31.6 33.9 34.9 36.2 38.3 41.4 44.5 49.0 1.6 32.0 37.0 41.7 47.7 54.3 70.5 79.8 90.9 101.4 109.8 55.9 54.8 51.6 50.5 47.9 47.0 47.4 47.6 49.0 49.9 50.5 1966 May June July Aug. Sept. Oct. 585.9 589.5* 588.6 592.9 594.5 596.2 163.7 166.5 164.3 167.0 53.3 53.6 53.7 53.9 54.2 54 .6 54.8 55.2 0.3 166.1 166.0 168.0 168.6 153.6 153.9* 156.1 156.6 156.7 156.6 158.3 159.3 111.3 111.5 110.9 111.4 112.3 112.2 113.0 113.4 50.4 50.4 50.6 50.6 50.5 50.6 50.6 50.9 53.3 53.4 52.8 53.3 54.5 166.9 165.8 171.0 163.6 165.3 167.6 168.6 168.6 623.0 630.2 635.4 638.1 170.7 172.4 174.7 177.2 178.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 113.7 114.8 116.3 117.1 172 .9 173.7 171.9 174.1 176.2 175.7 645.8 650.2 177.8 180.7 183.8 183.1 55.5 55.9 56.3 56.8 57.4 57.8 58.4 58.7 58.9 59.5 59.9 51.0 50.9 51.0 51.1 51.1 51.2 51.3 51.3 51.4 51.4 51.5 51.9 54.2 51.7 52.9 50.9 49.5 46.5 46.7 47.8 48.2 48.3 49.1 50.5 655.8 658.6 665.1 663.6 179.5 178.2 181.5 180.7 186.5 187.6 187.8 187.2 51.9 51.8 51.8 51.8 53.6 55.4 56.9 56.3 Nov. Dec . A 1967 * Jan. Feb. Mar. Apr . May June July Aug. Sept. Oct. Nov. Dec. 1968 Jan. Feb. Mar . Apr . For * 600.6 601.5 605.1 604.7 615.1 613.2 619.7 620.6 footnotes see next p a g e . . Beginning w i t h data for J u n e 180.1 P " Preliminary 60.1 #60.6 61.1 61.4 61.6 0.8 0.6 0.5 0.5 0.4 0.3 0.2 0.2 0.2 0.2 0.2 0.1 0.-1 61.8 118.0 118.9 119.9 121.0 122.5 123.0 123.7 123.9 # 123.7 124.6 125.9 126.0 r - Revised Ratios: Commercial Demand deposits and bank deposits currency to and currency to gross nation- liquid assets ( 2 + 3 4-1) al product 7/ 11 10 29.7 55.7 55.0 54.4 53.6 54.8 28.6 52.6 81.5 27.5 26.4 25.1 24.6 24.1 80.0 22.8 53.0 53.0 52.9 53.0 53.5 54.3 79.7 22.5 79.0 22.2 78.5 21.9 85.3 81.3 79.7 80.5 79.5 80.2 79.0 78.4 79.5 34.7 32.6 31.3 30.4 81.0 56.0 55.8 53.9 79.2 21.9 79.6 22.1 79.3 22.0 79.6 22.0 54.2 54.3 54.4 54.6 54.3 54.1 54.3 54.5 54.6 54.8 55.0 55.0 55.4 55.8 55.6 55.7 55.8 55.8 56.0 21.8 80.5 55.9 55.8 55.5 55.5 55.4 on basis of December 30, 1967, Call R e p o r t . 1966, total liquid assets and time deposits at commercial banks exclude $1.1 billion of balances accumulated the payment of personal loans. # - Reflects c o n v e r s i o n of a savings and 52.6 1.3 1.1 0.9 Liquid assets to gross national product 7/ . loan association with share capital of about $175 million to a mutual savings ban . for 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 I960, 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. Gross.national product figures are available quarterly and a n n u a l l y 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). • — - — - • w— - — •. . --
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