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NOT FOR PUBLICATION ' —, 1 , OCT IT fiTY L.4.3 October 15, 1969. r BANKING AND MONETARY^EVELOPMENTS IN SEPTEMBER 1969 Summary. Commercial bank credit declined further in September as a sharp reduction in holdings of U.S. Treasury securities more than offset moderate increases in loans and holdings of other securities. Bank sales of Treasury bills--presumably associated with the runoff of strip bills acquired in the late August financing--accounted for a large part of the reduction in U.S. Government securities but holdings of coupon issues also were reduced. Business, real estate, and consumer loans rose at about the same moderate pace as over the preceding three months. Banks acquired a small volume of municipal and agency securities following substantial liquidation in other recent months. The money supply increased slightly in September following a small decline in August. U.S. Government deposits increased substantially. Time and savings deposits continued to decline but at a much reduced pace compared with other recent months. Attrition of large negotiable CD's continued heavy--especially over the tax and dividend period--but the outflow of consumer-type time and savings deposits slackened at city banks and total time and savings deposits at country banks increased following two months of decline. Net borrowed reserves declined somewhat while total and required reserves remained relatively unchanged. Changes in Commercial Bank Credit Money Supply and Time Deposits (Seasonally Adjusted) Year Total loans and investments Annual rate (per cent) 1969 1968 First Second First Jan. - June- JulySept . Sept. May Half Half Half Jan. Sept. Sept. 11.0 6.5 15.0 3.0 3.9 -0.7 -0.5 1.8 -2.1 3.0 2.3 3.6 -17.9 -21.5 -8.0 -10.7 -15.1 -44.5 Other securities 16.4 8.1 23.8 -0.3 -6.3 -7.9 -2.8 3.4 11.6 7.2 15.5 9.1 11.2 2.3 3.6 7.2 5.3 11.1 7.6 14.1 14.0 16.8 4.1 5.5 11.3 3.5 7.2 7.2 7.0 4.3 4.3 1.4 0.4 3.0 0.6 11.5 5.3 17.3 -4.0 -3.7 -11.1 -13.1 -7.0 -1.9 U.S. Gov't, sec. Total loans Business loans Money supply Time and savings deposits at all commercial banks - - NOTE: Beginning July 1969, bank credit data are revised to include all bank premises subsidiaries and other significant majority-owned domestic subsidiaries; earlier data are for commercial banks only. Also total loans and investments are now reported gross of valuation reserves rather than net as previously reported. Individual loan items have always been reported gross. Where necessary, in the computation of annual rates, data prior to July 1969 have been adjusted to maintain comparability with current data. Money supply and time deposit data revised to reflect changes in seasonal factors and adjustments to Call Report benchmarks. -2- 4 Bank credit. Loans and investments at all commercial banks declined $700 million in September following a net reduction of $200 million over the previous three months. If, however, data were adjusted to take into account loans sold outright over this period, there would have been a small rise in credit. In September, at both large and small banks, credit growth (not adjusted for seasonal) was much smaller than usual. While total loans increased about the usual amount at weekly reporting banks, total investment portfolios showed a large contraseasonal decline. At nonweekly reporting banks, both loans and investments increased much less than usual. Holdings of U.S. Government securities declined $2.1 billion in September following a small net increase over the previous three months. Reductions in Treasury bill holdings were large at weekly reporting banks presumably reflecting sales of strip bills acquired in the late-August financing. Banks also reduced their coupon issues somewhat. Holdings of "other securities" increased $200 million--the first monthly increase since March. This reflected in part underwriting by New York City banks of the $450 million of short-term notes sold by the State of New York on September 12. At other large city banks, holdings of municipals continued to decline. Over the January-September period, total investment portfolios of all commercial banks declined at an annual rate of over 8 per cent compared with an increase of almost 10 per cent over the year 1968. Total loans increased $1.2 billion in September with most major loan categories showing moderate increases. Consumer loans continued to expand at the reduced pace of other recent months and while real estate loans increased at a slightly faster rate, this reflected in part some loan reclassifications. Business loans increased $300 million in September, or slightly less than the average monthly rise over the preceding three months. Even after adjustment for loans sold, this increase was relatively small considering the relatively large corporate tax payments due in September and the unusual borrowing in connection with the auction of North Slope oil leases. At weekly reporting banks, borrowing was relatively heavier in New York than outside, and included substantial increases in loans to machinery and transportation equipment concerns as well as to crude petroleum producers. Money supply and time deposits. The money supply increased $100 million in September following a $200 million decline in August. Since May, the money stock has increased $220 million on a monthly average basis compared with $700 million earlier in the year. U.S. Government deposits increased substantially further in September following a moderate buildup in August from the unusually low July level. Time and savings deposits declined $300 million in September following reductions of over $3 billion in each of the two previous months. Attrition of large negotiable CD's continued heavy, however, particularly in relation to the reduced level of maturities. Banks outside New York City continued to account for a substantial part of the decline. On the other hand, the outflow of consumer-type time and savings deposits slackened at - 3- city banks. While savings deposits declined further, the drop was offset in part by a small rise in time certificates and open account deposits At country member banks, total time and savings deposits increased following two months of decline, which was particularly heavy in July following midyear interest crediting. Bank reserves. Net borrowed reserves averaged about $830 million over the five weeks ending October 1 compared with $1 billion in August. Member bank borrowings declined and excess reserves increased somewhat. Total and required reserves showed little further change. Banking Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System L.4.3 - EXHIBIT A, PART 1 LOANS AND INVESTMENTS AT ALL COMMERCIAL BANKS Last Wednesday of month, seasonally adjusted 1 1 1 1 Billions of dollars 1 1 1 II 1 1 1 II 1 1 1 1 1 II 1 II * T<3TALLOANS Af<D INVESTMENTS 1 1 1 1 ~ ^ - — - L<JANS OTHER SECURITIES U.S. GOVT. SECURITIES M D D 1966 * CHANGE IN SERIES. 1967 M J 1968 S D M J 1969 S D Exhibit A - Part II Loans and Investments at All Commercial Banks (Seasonally Adjusted) Date Total U.S. Gov't, securities Loans ( I n b i l l i o n s of d o l l a r s Other securities ) 1962--Dec. 1963—Dec. 1964--Dec. 1965--Dec. 1966--Dec. 1967--Dec. 31 2/ 31 2/ 31 31 31 30 227.9 246.2 267.2 294.4 310.5 3/ 346.5 134.0 149.6 167.7 192.6 208.2 3/ 225 .4 64.6 61.7 60.7 57.1 53.6 59.7 29.2 35.0 38.7 44.8 48.7 61.4 1968--Jan. Feb. Mar. Apr . May June July Aug. Sept. Oct. Nov. Dec . 31 28 27 24 29 30 31 28 25 30 27 31 349.9 353.9 352.5 355.2 357.3 357.8 365.9 370.4 374.6 379.4 381.6 384.6 227.5 229.2 229.0 231 .4 232.6 233.5 238.4 241.1 243.6 246.7 250.4 251.6 60.0 62 .0 59.9 60.3 61.0 60.4 63.1 63.9 64.0 64.2 61.0 61.5 62.4 62.7 63.6 63.4 63.6 63.9 64.4 65.5 67.0 68.5 70.2 71.5 1969—Jan. Feb. Mar. Apr. May June 29 26 26 30 28 30 385.9 387.9 386.8 389.9 390.8 390.4 253.7 258.4 257.5 260.6 263.3 263.0 60.8 58.1 57.4 57.6 56.0 56.0 71.4 71.5 71.9 71.7 71.5 71.4 395.2 268.0 56.0 71.2 395.7 395.4 394.7 268.8 269.2 270.4 56.6 56.6 54.5 70.3 69.6 69.8 June 30 e(new series)4 ( July 30 Aug. 27 Sept. 24 1/ 2/ 3/ Adjusted to exclude interbank loans. p - Preliminary. r - Revised e - Estimated Estimated as of December 31. Beginning June 9, 1966, loan data exclude $1.1 billion of balances accumulated for payment of personal loans. Beginning June 30, 1966, total loans exclude, and other securities include, about $1 billion of participation certificates. 4/ See note on Page 1. NOTE: Chart has not been completely revised for changes,in data relating to December 1968 benchmark revision. Overlapping data for March 1969 are shown. •• •• • • • • •• • t •• •• L.4.3-EXHIBITS, P a r t i LOANS AT ALL COMMERCIAL BANKS Billions of dollars Last Wednesday of month, seasonally adjusted 1 1 1 1 1 1 1 1 1 1 1 1 II 1 1 1 1 I I II M M 110 M 100 BUSINESS 90 - — 80 70 - - — 60 REAL ESTATE 50 CONSUMER - 40 30 15 10 SECURITY 1 II I I I 1 I 1966 I I I I I Exhibit B - Part II Loans at All Commercial Banks Seasonally Adjusted Business Date ( I n Consumer Real E s t a t e .b i l l i o n s o 1 d o l l a r Security s ) 1962--Dec. 1963—Dec. 1964--Dec. 1965--Dec. 1966—Dec. 1967--Dec. 31 1/ 31 1/ 31 31 31 31 47.6 52 .0 58.4 69.4 78.6 86.3 34.2 39.1 43.6 49.2 53.8 58.4 23.7 27.2 31.1 35.6 38.2 40.0 6.1 6.9 7.4 7.4 7.9 9.2 1968--Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 31 28 27 24 29 30 31 28 25 30 27 31 86.6 87.1 87.8 88.8 89.2 89.6 90.8 91.7 92 .4 93.4 95.1 95.9 58.9 59.5 60.1 60.6 61.1 61.4 61.8 62.3 62.8 63.6 64.3 65.0 40.4 40.8 41.0 41.4 41.6 41.8 42.2 42.7 43.3 44.0 44.3 44.9 10.1 10.2 8.7 8.5 8.5 8.2 10.7 11.4 11.6 11.2 11.0 10.4 1969—Jan. Feb. Mar. Apr. May June July Aug. Sept. 29 26 26 30 28 30 30 2/ 27 24 p 97.7 99.1 99.8 101.2 102.6 102.6 102.6 103.7 104.0 65.7 66.4 67.1 67.7 68.1 68.4 68.5 68.7 69.1 45.3 45.5 45.8 46 .2 46.4 46.6 46.7 r 46.9 47.1 9.4 10.4 8.8 8.9 9.3 8.9 9.7 8.5 8.6 1/ 2/ Estimated as of December 31. p - Preliminary r - Revised e - Estimated July data are comparable with previous months. Individual loan items are gross throughout and the effect of consolidation on any one loan item was nominal. NOTE: Chart has not been completely revised for changes in data relating to December 1968 benchmark revision. Overlapping data for March 1969 are shown. These data are not for publication. Exhibit C Changes in Loans and Investments at All Commercial Banks, Seasonally Adjusted (In billions of dollars) Item Aug. Loans and Investments 2/ 4- 4.5 Sept. + 4.2 Oct. Nov. + 4.8 + 2.2 + 3.0 + 1.3 + 2.0 - 1.1 + 3.1 + 0.9 - 0.4 + 0.5 - 2.7 - 0.7 + 0.2 - 1.6 1/ + 0.6 + 0.5 - 0.2 - 0.2 - 0.1 - 0.9 - 0.7 + 0.2 + 0.8 + 0.4 + 1.2 + 1.1 + 0.3 i Dec . Jan. Feb. Mar. Apr. May June July - y Aug. - 0.3 Sept. ~ 0 7 U. S. Gov't, securities + 0.8 + 0.1 + 0.2 - 3.2 + 0.5 - 0.7 Other securities + 1.1 + 1.5 + 1.5 + 1.7 + 1.3 - 0.1 Loans 2/ + 2.7 + 2.5 + 3.1 + 3.7 + 1.2 + 2.1 + 4.7 - 0.9 + 3.1 + 2.7 - 0.3 Business + 0.9 + 0.7 + 1.0 + 1.7 + 0.8 + 1.8 + 1.4 + 0.7 + 1.4 + 1.4 1/ Real estate + 0.5 + 0.5 + 0.8 + 0.7 + 0.7 + 0.7 + 0.7 + 0.7 + 0.6 + 0.4 + 0.3 + 0.1 + 0.2 + 0.4 Consumer + 0.5 + 0.6 + 0.7 + 0.3 + 0.6 + 0.4 + 0.2 + 0.3 + 0.4 + 0.2 + 0.2 + 0.1 r + 0.2 + 0.2 Security + 0.6 + 0.2 - 0.4 - 0.2 - 0.5 - 1.0 + 1.0 - 1.6 + 0.1 + 0.4 - 0.4 + 0.8 - 1.2 + 0.1 Nonbank financial + 0.2 1/ + 0.6 + 0. 3 + 0.1 1/ + 0.5 - 0.7 + 0.8 + 0.3 - 0.5 - 0.3 + 0.3 - 0.3 + 0.1 + 0.1 1/ 1/ - 2.1 Agriculture 1/ + 0.1 - 0.1 - 0.2 + 0.1 - 0.1 + 0.3 - 0.1 + 0.2 i/ + 0.3 + 0.1 All other 1/ + 0.4 + 0.5 + 1.1 - 0.6 + 0.3 + 0.6 - 0.2 - 0.4 1/ - 0.2 1/ r - 0.3 + 0.4 + 2.1 + 2.3 + 3.5 + 3.9 + 1.7 + 3.1 + 3.7 + 0.7 + 3.0 + 2.3 + 0.1 1/ + 1.6 + 1.1 + 1.9 + 2.3 + 2.9 + 3.6 + 1.6 + 3.1 + 3.2 + 1.4 + 2.2 + 2.0 + 0.6 | + 0.3 + 1.3 + 1.4 Total loans excluding security _3/ Total loans excluding security and nonbank financial 3/ 1/ 4/ Less than $50 million. 2/ Adjusted to exclude interbank loans. c - Corrected. r - Revised. lar e S banks on a last-Wednesday basis, bankers 1 acceptances increased $4 million in September 1969, compared with a decrease of $47 million in September 1968, and an increase of $77 million in September 1967. Changes are adjusted, where necessary, for conceptual changes in bank credit series beginning July 1969. Individual Loan Categories Are Not Available for Publication At e « # 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) t . Item Last Wednesday of August: to last Wednesday of Seote.mber 1969 1968 1967 1966 1965 1964 1963 All commercial banks 6/ Total loans U. S. Gov't, securities Other securities Total + 2.9 1.1 + 0.3 + 2.1 + + + + 4.1 1.0 1.6 6.7 + + + + 3.1 1.0 0.5 4.6 + 1.2 0.1 + 0.4 + 1.4 + + + + 2.7 0.4 0.5 3.6 + + + + 3.5 1.9 0.7 6.1 + + + + 3.5 1.0 0.5 4.8 All Lar^e Banks 5/ 6/ Total loans U. S. Gov't, securities Other securities Total + 2.6 1.1 1/ + 1.5 + + + + 2.7 0.8 1.1 4.7 + + + + 2.5 0.1 0.3 2.9 + 0.8 0.3 + 0.1 + 0.5 + 1.9 0.1 + 0.1 + 1.9 + + + + 2.7 1.2 0.4 4.4 + + + + 2.5 0.4 0.2 3.1 Other banks 5/ 6/ Total loans U. S. Gov't, securities Other securities Total + 0.3 1/ + 0.3 + 0.6 + + + + 1.4 0.2 0.5 2.0 + + + + 0.6 0.9 0.3 1.7 + + + + + + + + + + + + 0.8 0.7 0.3 1.7 + + + + 1.0 0.6 0.2 1.7 Item 0.4 0.2 0.3 0.9 0.8 0.5 0.4 1.7 End of December to las t Wednesday of Sentember 2/ 1964 - 2/ 1963 - + 9.8 2 .7 + 2.7 + 9.8 + + + 8.7 5.4 + 3.0 + 6.3 + 4.6 1.8 + 1.5 + 4.3 + 3 .6 4.2 + 3.3 + 2.7 6.2 1.7 + 2.1 + 6 .6 + 5.2 0.9 + 1.2 + 5.5 + 4.5 0.4 + 1.6 + 5.6 1969 1968 1967 1966 All commercial banks 6/ Total loans U. S. Gov't, securities Other securities Total + 8.8 -11.6 - 0.9 3.7 +14.0 1/ , +6.1 +20.1 + 7.4 + 3.9 + 9.5 +20.9 +ii.i- -/+14.9 7.1 + 2 % + 5.1 + 8.1— +12 .9 All Large Banks 5/ 6/ Total loans U. S. Gov't, securities Other securities Total + 2.3 7.2 2.6 7.5 + 6.7 - 0.2 + 3.8 +10.3 + 2.1 + 1.8 + 6.3 +10.3 + 5.6^ Other banks 5/ 6/ Total loans U. S. Gov't, securities Other securities Total + 6.5 4.4 + 3.5 + 3.8 + + + + + 5.3 + 2.1 + 3.2 +10.6 NOTE: 7.3 0.2 2.3 9.8 - + + 1965 y+ Si + - + lUf + 5.8 - - 8.1 4.6 4.9 8.3 Data exclude all interbank loans; call report data for large commercial banks used when available. 1/ Less than $50 million. 2/ Based on estimated data for all commercial banks on December 31, 1963, and December 31, 1962, and for large commercial banks on December 31, 1962 . 3/ Allowance has been made in monthly changes in total loans and in other securities for approximately $1 billion of participation certificates shifted from loans to other securities in late June 1966: $700 million at large banks and $300 million at other banks. 4/ Allowance has been made in monthly changes in total credit and in total 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, 1966: $400 million at large banks and $700 million at other banks. 5J Based on revised coverage beginning July 1966; January 1967, 1968, and 1969. 6/ Based on revised reporting beginning July 1969. See note on page 1. Changes have http://fraser.stlouisfed.org/ been adjusted to maintain comparability of series. Federal Reserve Bank of St. Louis Exhibit E Changes in Commercial and Industrial Loans at Large Commercial Banks (In millions of dollars) Late August to late September 1/ 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 3V Communication 3/ Other public utilities Construction All other types of business Bankers acceptances Services 3/ Other Foreign business concerns 3/ Classified Unclassified Total Change i: 1968 1969 + 141 6 92 + + 15 + 77 + 587 64 + + 374 + 135 14 + 19 + 15 13 + 58 + + 95 + 173 + 250 75 + + 99 76 + 6 + 74 4 + 72 6 75 +1 ,264 23 + +1 ,287 + 274 31 16 89 + 73 + 326 + 69 + 125 + 100 32 + 3 34 + + 114 14 + + 45 24 + 173 15 + 51 + 137 + 21 + 228 47 54 + + 221 22 +1 ,133 + 158 +1 ,291 1966 1967 + + + + + + + 76 23 229 217 12 135 69 4 + 35 + 27 38 + 85 + 58 52 + 56 + + 65 + 243 + 115 9 + 137 - - + + 145 77 10 93 + + 4 +1 ,140 43 + +1 ,183 1965 + 112 39 + 143 92 + 51 + + 245 75 + 241 52 + + 27 53 1 + 106 31 + 28 + + 156 + 303 n.a. n.a. n.a. 55 + 47 14 + n .a. 33 + n.a. +1,023 + 124 +1,147 + + + + + + + + + + 191 55 133 94 39 246 18 47 115 66 31 48 66 88 42 19 201 n.a. n.a. n.a. 5 87 66 n.a. 21 n.a. +1,028 + 30 +1,058 Late December to late September 2/ 1969 - 393 - 502 + 165 + 15 + 150 +1.686 + 118 + 988 + 312 + 268 + 621 + 222 + 162 + 322 + 278 + 141 + 665 + 310 + 113 + 242 + 368 -2.991 - 314 + 636 -3,313 - 332 + 412 +4.589 +5,001 1968 + 351 581 98 56 + 154 +1.267 + 739 + 308 1 + 221 + 655 + 17 62 + 254 + 124 + 411 + 634 + 501 11 + 144 + 328 + 731 - 445 + 548 + 628 - 204 +3,321 + 286 +3,607 1967 1966 - 100 549 - 300 301 + 542 8 + 339 10 + 203 + 4 +2,132 +1.025 + 158 + 356 +1,040 + 505 + 597 70 + 337 + 231 + 656 + 272 + 164 + 37 + 434 + 197 + 468 + 185 + 436 + 291 + 566 25 + 590 + 625 n.a. + 368 n.a. + 218 n.a. + 39 + 115 31 + 80 + 788 + 367 . - 333 n.a. - 136 + 413 + 557 n.a. - 118 +5,783 +2,382 + 533 + 243 +6,316 +2,625 - for December 31. parately. 1965 - 293 - 333 + 910 + 587 + 323 +1.494 + 183 + 573 + 313 + 425 + 638 + 295 + 298 + 407 + 324 + 217 + 683 n.a. n.a. n.a. + 290 + 272 - 368 n.a. + 640 n.a. +5,202 + 634 +5,836 Exhibit F Loans and Investments at All Commercial Banks (In billions of dollars) Loans and investments Date U. S. Gov't. Other securities Total loans Business Real estate Security 1960--Dec. 1961--Dec. 1962--Dec. 1963--Dec. 1964--Dec . 1965--Dec. 1966--Dec 1967--Dec . 31 30 31 (est.) 31 (est.) 31 31 31 30 198.5 214.4 233.6 252.4 273.9 301.8 317.9 1/ 354.5 61.0 66.6 66.4 63.4 63.0 59.5 56.2 62.5 20.9 23.9 29.3 35.1 38.8 44.9 48.8 2/ 61.5 116.7 123.9 137.9 153.9 172.1 197.4 213.0 1/2/ 230.5 43.1 45.2 49.1 53.7 60.2 71.4 80.6 88.5 28.7 30.3 34.3 39.2 43.7 49.3 54.0 58.5 5.1 6.2 7.3 7.9 8.4 8.5 9.0 10.5 1968— Jan. Feb. Mar . Apr . May June July Aug. Sept., Oct. 31 28 27 24 29 29 31 28 25 30 27 21 350.5 350.9 351.5 354.7 355.4 361.4 366.0 367.9 374.4 379.3 381.1 393.4 62.2 63.2 61.2 59.8 60.3 58.6 60.5 61.5 62 .5 64.8 62.8 64.5 61.7 62.2 63.1 63.8 63.5 64.4 64 .6 66.0 67.6 68.8 69.5 71.5 226.5 225.5 227.2 231.0 231.6 238.4 240.9 240.4 244.2 245.7 248.8 257.4 85.7 85.9 87.8 89.2 88.7 91.5 91.3 90.3 92.1 92.7 94.7 98.4 58.8 59.2 59.6 60.2 60.8 61.4 61.9 62.5 63.2 64.0 64.7 65.1 10.8 9.7 8.7 8.7 8.5 9.2 11.1 11.1 11.4 10.5 10.0 11.8 1969--Jan. 29 Feb. 26 Mar . 26 Apr . 30 28 May 63.2 59.5 58.5 57.9 55.2 53.8 70.5 70.9 71.4 72.0 71.4 72.0 251.3 253.7 255.7 260.8 262.2 268.5 96.5 97.7 99.9 101.8 102.1 104.8 65.6 66.1 66.6 67.2 67.8 68.4 53.9 54.5 54.1 53.0 71.8 70.5 70.1 70.4 273.6 270.7 268.3 271.2 104.8 103.3 102.2 103.7 68.4 68.6 69.0 69.5 Nov. Dec. NOTE: June 30 e j 385.0 384.1 385.6 390.7 388.8 394.3 June July Aug. Sept. 30 (new) 3/ | 30 | 27 24 p 399.2 395.7 392.6 394.6 • Data exclude interbank loans. Consumer and "other loans" are partly estimated for all dates. Consumer Farm Nonbank financial institutions All other 20.6 21.4 23.7 27.2 31.0 35.7 38.3 40.0 7.1 7.3 8.5 10.2 10.9 13.3 . 13.3 12.5 8.7 9.8 10.7 11.3 13.9 15.0 13.6 1/2/ 15.9 9.3 9.5 9.6 9.7 9.8 10.0 10.1 10.0 9.9 9.9 9.8 9.7 40.1 40.2 40.5 41.1 41.6 42.1 42.6 43.2 43.6 44.1 44.4 44.9 11.3 10.7 10.8 11.1 10.8 12.2 12.0 11.4 11.9 12.0 12.1 13.7 15.3 15.2 15.1 15.8 16.2 16.8 16.7 16.7 16.9 17.3 17.9 18.9 9.5 9.5 8.8 9.4 9.3 10.0 9.7 10.0 10.1 10.3 10.4 10.6 44.9 44.9 45.2 45.9 46.4 46.9 12.1 12.5 12.3 13.3 12.7 13.6 18.2 18.2 18.0 18.2 18.6 19.2 10.0 9.8 8.3 8.5 10.6 10.7 10.7 10.6 46.9 47.2 r 47.4 47.5 13.6 12.5 12 .4 12.8 19.3 18.5 18.3 18.5 5.7 6.2 7.1 7.4 7.5 8.2 8.6 2/ 9.3 Other data are partly estimated on all but June and December call d a t e s . p - Preliminary. r - Revised. e - Estimated 1/ Beginning June 9, 1966, $1.1 b i l l i o n of balances accumulated for the payemtnt of personal loans were deducted from time deposits and "all other" loans. 2/ Beginning June 30, 1966, about $1 billion of participation certificates previously included in agricultural and "all other loans were reclassified as "other securities." Data revised to include all bank premises subsidiaries and other significant majority-owned domestic subsidiaries; earlier data are for commercial banks only. Also, total loans and investments are now reported gross of valuation reserves rather than net as previously. Individual loan items have always been gross. 3/ I n d i v i d u a l loans category data are available for publication only on a June and December call data basis. Exhibit G Ratios to Total Deposits 1/ U.S. Government securities maturing within one year L O A N S Date All commercial banks B a n k s M e m b e r Reserve City Banks New York City of Total Chicago Other City Country All commercial banks 37.6 39.9 41.1 40.7 46.7 50.1 51.0 49.4 55.6 56.5 55.7 57.7 59.9 61.9 65.4 67.9 65.8 46.3 50.6 50.6 46.8 56.7 61.7 61.9 57.7 67.3 65.9 65.0 67.9 67.4 69.3 75.9 83.5 79.9 36.2 38." 9 39.1 38.3 46.3 52.7 55.2 49.4 58.2 60.8 58.0 61.4 62.1 64.4 70.2 77.0 70.8 39.4 41.1 42.2 41.9 48.5 52.7 53.3 51.3 58.2 59.0 57.7 60.1 63.3 65.0 68.7 70.2 68.1 32.1 33.9 36.1 37.1 40.7 42.6 44.1 44.4 48.2 50.3 50.2 51.7 53.8 56.0 57.9 59.2 58.2 9.8 11.7 16.9 10.0 5.1 7.5 8.4 8.3 7.4 8.7 11.2 9.5 7.5 8.0 7.3 6.1 6.4 64.0 63.9 64. 6 65.4 65.7 66.1 66.2 66.2 66.0 65.4 66.0 64.7(63.7) 65.6 65.5 66.4 67.4 67.6 68.1 68.1 68.1 68.1 67.4 68.3 66.8 80.2 79.7 81.8 84.4 84.9 85.1 87.5 89.2 87.5 85.7 87.9 83.5(76.3) 70.0 70.3 75.1 75.6 75.6 78.6 76.1 75.5 76.6 74.4 76.4 75.1 67.4 67.5 68.6 69.8 70.0 70.5 69.6 69.3 69.6 69.3 70.6 69.1 58.2 58.2 58.3 58.9 59.1 59.3 59.5 59.6 59.5 59.0 59.2 58.2 6.3 5.9 5.5 4.9 5.1 5.1 5.4 5.3 5.5 6.5 5.7 6.1 1969—Jan. 29* 66.2(64.7) Feb. 26^ 67.4(65.9) Mar. 26j 68.1(66.4) Apr. 301 t 68.4(66.7) May 28 k 70.0(68.2) (old) June 25 r 71.5(69.0) (new) June 25': 72.8(70.3) July 30 73.2(70.5) Aug. 27"• 73.0(70.2) Sept .24't 73.3(70.6) 68.4 69.7 70.5 70.9 72.6 74.3 75.8 76.3 75.3 76.4 86.1(76.0) 71.0(79.7) 94.1(80.9) 94.4(80.2) 99.7(84.9) 105.6(85.6) 108.4(86.5) 110.9(88.6) 106.0(84.0) 108.0(86.3) 77.1 80.1 83.8 83.1 85.5 88.6 91.0 91.8 94.2 97.5 71.4 72.1 72.9 73.4 75.0 77.0 78.4 78.8 78.8 79.4 59.2 59.8 60.2 60.3 61.4 61.9 63.0 63.2 63.6 63.3 6.0 5.4 5.7 5.0 4.6 4.2 4.2 4.5 4.7 n.a. 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. 1965—Dec. 1966—Dec. 1967—Dec. 31 37.2 31 39.3 31 40.5 31 40.3 31 45.8 31 48.8 31 49.7 31 48.4 31 54.0 31 55.1 31 54.5 28 56.5 25 58.6 31 60.5 31 63.7 31 65.8 30 63.8 1968—Jan. 31 Feb. 28 Mar. 27 Apr. 24 May 29 June 2 9 July 31 Aug. 28 Sept.25 Oct. 30 Nov. 27 Dec. 31* NOTE: Comparability of figures affected by changes in Federal Reserve membership, merger, and by changes in the reserve classification of cities or individual banks. p - Preliminary. 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.) * - Ratios in parenthesis are those obtained by adding Euro-dollars to the deposit base. L.4.3- EXHIBIT H, PART 1 DEPOSITS AND CURRENCY AND TURNOVER OF DEMAND DEPOSITS Seasonally adjusted. Deposits, average of daily figures. Turnover, monthly. Annual rate 1 1 1 1 1 1 1 1 1 1 1 55 Billions of dollars 1 1 1 1 1 1 1 1 1 1 1 225 - 205 * A 50 TIME AND SA\ZINGS DEPOSITS / ALL COMMERCIAL!BANKS - / f 45 MONEY S U P P L Y / ^ ^ - . AZ /IV 40 - /— y / f V ' 185 /TURNOVER OUTSIDE N.Y.C. 232SMSA'S 165 X 35 10 145 10 U.S. GOVT. DEPOSITS MEMBER BANKS 1 1 1 1 1 1 1 1 1 1 1 M i l l 1966 * CHANGE IN SERIES. 1967 1968 1969 Exhibit H - Part II P e r i o d Total S e a s o n a l l y A d j u s t e d Data (Dollar amounts in billions) Time and 1/ U.S. Gov't. S u p p l y M o "ley V 1/ savings 2/ deposits deposits 5/ (all member) 1/ Demand deposits Currency (All commercial) 1964--December 1965--December 1966--December 1967--December 159.3 r 166.7 170.4 181.7 125.1 r 130.4 132.1 141.3 34.2 36.3 38.3 40.4 1968—January February March April May June July August September October November December r r r r r r r r r r r r 182.6 183.3 184.2 185.1 186.8 188.2 189.6 191.0 191.4 191.8 193.6 194.8 r r r r r r r 40.6 40.7 41.1 41.3 41.6 41.9 42.1 42.4 42 .7 42.8 43.2 43.4 1969—January February March April May June July August September r r r r r r r r 195.8 196.3 196.8 198.1 198.3 199.0 199.3 199.1 199.2 r r r r r r r r Week ending: 1969—September 3 10 17 24 p 1/ 2/ 3/ 4/ 199.5 199.3 199.6 198.4 r r r r 142.0 142.6 143.2 143.8 145.3 146.3 147.5 148.6 148.8 149.1 150.5 151.4 152.3 152.5 152.7 154.0 153.8 154.2 . 154.4 153.8 153.9 154.0 154.2 154.3 153.1 r r r r r 43.5 r 43.8 r 44.1 44.2 r 44.5 r 44.8 r 45.0 45.3 : 45.3 45.5 45.1 45.3 45.3 Averages of daily figures. p - Preliminary. Beginning on June 9, 1966, time deposit data exclude $1.1 billion of Last Wednesday of month. certain changes in coverage and definitions have occurred that affect small however. 5/ Money supply and time deposits revised to reflect changes in seasonal * - Beginning January 1964, data for 232 metropolitan centers outside New Not Seasonally Adj. (In mil. of dollars) Turnover outside N.Y. City* (per cent) Gross liabilities of U.S. banks to 3_/ [ their foreign branch# 126.6 r 146.7 r 158.5 r 183.7 5.1 r 4.4 3.5 4.6 33.3 37.4 40.0 41.1 1,183 1,345 4,036 4,241 184.1 185.8 187.2 187.7 188.2 188.6 191.1 193.8 196.4 199.4 202.1 204.9 5.4 7.1 6.7 5.2 3.7 3.9 2.7 4.8 r 5.3 5.0 4.7 4.2 41.6 42.1 41.6 42.3 43.0 43.4 43.7 43.7 43.8 46.5 44.9 44.5 4,259 4,530 4,920 5,mo 5,872 6,202 6,126 7,004 7,104 7,041 7,170 6,039 203.2 202.4 202.3 202.3 201.7 200.8 197.7 194.5 194.2 5.4 6.7 4.8 5.9 5.9 4.0 2.4 2.9 4.3 46.1 47.4 46.1 46.8 48.0 48.4 49.1 49.9 n.a. 8,545 8,822 9,877 9,397 9,868 13,253 14,435 14,658 14,349 194.0 193.9 194.2 194.3 3.2 2.2 5.3 4.1 n.a. n.a. n.a. n.a. r r r r r r r r r r r r r r r r r r r r r r 14,523 14,917 14,589 14,349 balances accumulated for the payment of personal loans. somewhat the comparability of the data. factors and Call Report benchmarks. York City. Breaks in the series are relatively L.4.3-EXHIBIT I, Parti TIME AND SAVINGS DEPOSITS AT LARGE COMMERCIAL BANKS Wednesday figures Billions of dollars 120 TOTAL TIME AND SAVINGS DEPOSITS 100 80 CONSUMER TYPE TIME AND SAVINGS 60 SAVINGS DEPOSITS 40 CONSUMER TYPE TIME DEPOSITS 20 NEGOTIABLE CD's STATE AND POLITICAL, FOREIGN OFFICIAL ETC. M 1966 J 1967 S D M J 1968 S D M J 1969 S D Exhibit I - Part II Period 1966--Dec. Dec. 1967—Dec. Dec. 28 28 27 27 (old) (new) 2/ (old) (new) 2/ Consumertype time & savings Total 89,495 89,639 102,809 102,991 Time and Savings Deposits Large State Political ConsumerFor. official Savings Negotiable type etc . time CD's 1/ 65,733 65,864 73,686 73,858 47,099 47,213 48,647 48,781 18,634 18,651 25,039 25,077 15,659 15,642 20,330 20,330 8,103 8,133 8,793 8,803 77,584 48,3(54 29,230 22,260 8,808 1968—Sept .25 108,652 1968—Oct. Nov. Dec. Dec. 30 27 31 (old) 31 (new) 2/ 110,771 111,895 111,900 112,103 78,456 78,656 79,443 79.637 48,522 48,668 49,016 49,161 29,934 29,988 30,427 30,476 23,303 24,302 22,821 22,820 9,012 8,937 9,636 9,646 1969--Jan. 29 Feb. 26 Mar.26 Apr. 30 May 28 June 25 (old) June 25 (new) 2/ July 30 Aug. 27 110,030 109,211 108,408 106,949 106,188 103,967 103,959 100,602 98,998 79,471 79,944 80,492 79,834 79,811 79,619 79,604 78,784 78,189 48,340 48,335 48,667 47,737 47,691 47,550 47,550 46,953 46,688 31,131 31,609 31,825 32,097 32,120 32,069 32,054 31,831 31,501 21,031 19,968 18,792 17,622 16,973 15,270 15,271 13,538 12,616 9,526 9,299 9,124 9,493 9,404 9,078 9,084 8,280 8,193 98,581 98,275 97,992 97,899 78,223 78,143 78,187 78,140 46,653 46,598 46,558 46,533 31,570 31,545 31,629 31,607 12,274 12,079 11,821 11,744 8,084 8,053 7,984 8,015 L 969—Sept. 2/ 3 10 17 P 24 p Revised series . Exhibit J Member Bank Reserves (Based on averages of daily figures; in millions of dollars) Excess Reserves Free reserves (excess reserves minus borrowings) DATE All member Reserve City Banks City of Chicago City New York All Other Country member Borrowings Total reserves held seasonally adjusted All member All member Monthly Averages: 1959- •December 1960- •December 1961- -December 1962- -December 1963- -December 1964- -December 1965- -December 1966- -December 1967- -December -424 669 419 1968--Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 144 38 -315 -413 -326 -341 -226 -190 -132 -167 -245 -297 1969--Jan. Feb. Mar. Apr. May June July Aug. Sept. p NOTE: 268 209 168 - 2 -165 107 1 -480 -596 -701 -844 -1,102 -1,096 -1,095 - 990 - 851 -109 10 - 50 - 62 19 - 14 - 70 - 95 - 22 - -104 - 4 -449 - 22 - 11 20 - 52 -122 -103 -161 -159 - 55 21 - .31 - 482 756 568 572 536 411 452 392 345 906 87 149 304 327 243 454 557 238 18,512 18,839 19,640 20,343 21,017 22,068 23,262 23,521 25,940 236 381 399 356 270 420 351 299 375 383 237 361 671 683 746 692 525 565 515 427. 569 752 26,134 26.352 26,451 26,298 26.353 26,547 26,715 27,213 27,311 27,504 27,685 27,964 2 - 59 -105 - 64 - 43 - 78 2 - 19 - 4 - 9 - 70 - 80 - 73 -253 -257 -189 -224 - 97 - 94 -133 -191 -258 -167 11 9 - 38 - 96 - 27 66 156 68 40 70 - 49 - 33 -101 -116 -148 7 - 15 - 49 - 37 -337 -403 -456 -521 -538 -671 -642 -430 -457 - 34 - 93 -100 - 90 -327 -402 -378 -460 -291 9 57 13 59 34 22 - 25 -164 -136 - 40 - 18 -130 - - 60 - 67 - 44 -117 - 89 - 30 - 60 - 52 - 65 8 - 50 - 5 80 237 583 471 394 334 315 238 140 187 2 166 260 324 455 217 228 217 152 300 312 96 260 216 697 824 918 996 1,402 1,408 1,191 1,250 1,067 28,139 28,060 27,972 27,775 28,235 28.056 27,530 27,398 27,393 Total- reserves revised beginning June 1967 due to a change in accounting procedures associated with Euro-dollar transactions. 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 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 within one year 6/ Liquid assets to gross national product 7/ 8 320.3 332.5 343.2 356.0 373.1 393.9 399.2 424.6 459.0 495.4 530.5 573.1 601.5 650.4 130.2 133.3 134.6 133.5 138.8 139.7 138.4 142.6 144.8 149.6 156.7 164.1 168.6 180.7 655.8 658.6 665.6 664.6 667.8 670.8 676.5 679.6 684.9 693.1 699.4 709.5 179.6 178.2 181.7 181.1 183.9 186.7 186.2 185.9 186.4 188.0 190.6 § 199.1 703.7 705.6 713.1 709.7 710.7 710.6 706.1 706.8 188.7 189.8 192.4 190.5 190.9 194.0 190.9 192.3 D a t a For f o o t n o t e s see next p a g e . * - B e g i n n i n g w i t h data for J u n e # 26.3 28.1 30.0 31.6 33.9 34.9 36.2 38.3 41.4 44.5 49.0 52.6 55.2 60.3 48.2 49.7 52.0 57.5 65.4 67.4 73.1 82.5 98.1 112.9 127.1 147.1 159.3 183.1 186.5 187.6 187.9 187.6 187.7 187.9 191.5 194.0 196.2 ; 200.4. 204.7 203.8 203.4 202.9 201.9 200.6 199.6 197.3 193.9 192.2 w i l l # 60.6 61.1 61.4 61.7 62.1 62.6 62.8 63.0 63.4 63.8 64.3 64.7 55.6 55.9 54.8 51.6 50.5 47.9 47.0 47.4 47.6 49.0 49.9 50.5 50.9 51.9 30.6 31.6 33.2 38.8 35.6 48.8 41.9 42.6 46.8 48.1 46.1 48.6 53.9 50.5 # 123.6 124.6 125.8 125.9 126.4 126.8 127.2 128.1 129.5 130.0 130.8 ' 131.0 51.9 51.8 51.8 51.8 51.8 51.9 51.9 52.0 52.0 52.0 52.1 52.5 53.6 55.4 57.0 56.5 55.9 54.9 56.9 56.6 57.4 58.9 57.0 58.5 0.8 0.6 0.5 0.5 0.4 0.3 0.1 131.0 64.8 65.2 65.5 65.7 66.1 66.2 66.3 66.4 b e r - Revised. 1966, total liquid assets and payment of personal l o a n s . - Reflects conversion of a s a v i n g s and 27.2 32.0 37.0 41.7 47.7 54.3 61.8 70.5 79.8 90.9 101.4 109.8 113.4 123.9 2.1 1.9 1.6 1.3 1.1 0.9 132.0 133.4 133.3 133.6 133.7 133.6 134.1 a v a i l a b l e i 52.5 52.3 52.2 52.2 52.2 52.2 52.2 52.2 O c t o b e r 85.3 81.3 79.7 80.5 79.5 80.2 79.0 78.4 79.5 81.0 81.5 79.8 77.6 78.7 Ratios: Commercial Demand deposits and bank deposits currency to and currency to gross nation- liquid assets ( 2 + 3 4 1 ) al product 7/ 10 11 34.7 32.6 31.3 30.4 29.7 28.6 27.5 26.4 25.1 24.6 24.1 22.8 21.8 21.9 78.7 21.7 77.7 21.5 77.4 21.4 55.8 55.5 55.5 55.5 55.6 55.8 55.8 55.9 55.9 78.1 ' 21.4 56.5 56.8 77.9 21.2 76.8 20.7 55.6 55.3 55.1 54.9 55.1 54.5 54.4 20. e - E s.t . ima P - Preliminary. .t e d . . . . , . time deposits at commercial banks exclude $ 1 . 1 billion of b a l a n c e s accumulated for the . loan association w i t h share capital of about $175 m i l l i o n to a m u t u a l savings b a n k . 6 - F i g u r e s are for T u e s d a y , D e c e m b e r 31, rather than for the last W e d n e s d a y of December. NOTE: T o t a l liquid a s s e t s and U . S . G o v e r n m e n t securities m a t u r i n g w i t h i n 1 year revised beginning January 1969 to conform to new Budget concept figures 56.0 55.7 63.4 63.4 67.7 67.5 68.3 67.3 69.3 69.7 55.7 55.0 54.4 53.6 54.8 52.6 53.0 53.0 52.9 53.0 53.5 54.3 54.5 55.9 were increased b y $ 1 . 7 b i l l i o n oh that d a t e . Both 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. Data have not been revised to conform with the daily average money supply revision (beginning June 1967) associated with Euro-dollar transactions. 3. Total time deposits at commercial banks except interbank, U.S. Treasurer's open account, and postal savings redeposited in commercial banks. Data are as of the last Wednesday of month except June 30 and December 31 when call data for these dates were used when available. Time deposits of commercial banks in Alaska and Hawaii and time deposits due to banks in U. S. possessions are included as indicated for demand deposits in footnote 2 above. 4. Figures compiled by the Federal Savings and Loan Insurance Corporation except that prior to 1955 data are Board estimates based on monthly figures of inflow of new savings and withdrawal of savings capital compiled by the Federal Home Loan Bank Board. 5. Includes all types of savings bonds held by investors other than commercial and mutual savings banks and U.S. Government agencies and trust funds. Holdings of savings and loan associations are also excluded beginning in February 1960, the earliest date for which separate figures for these institutions are available. Figures are from data compiled by the U. S. Treasury Department. 6. Beginning December 1950 figures include Treasury marketable securities and Federal agency securities maturing within one year, except holdings of domestic commercial, mutual savings, and Federal Reserve Banks, Government agencies and trust funds, and beginning February 1960, savings and loan associations. Figures have been adjusted to include partially tax-exempt securities 12 months prior to first call date, and prior to 1956, nonmarketable Treasury savings notes with maturities up to 36 months. Prior to December 1950 figures for marketable issues include securities callable within one year. Figures represent par value and are from the U. S. Treasury Department's Survey of Ownership of U. S. Government Securities. 7. Gross national product figures are available quarterly and annually only. Data for total liquid assets used in computing these ratios are quarterly averages calculated for. four dates (each month of the current quarter and the last month of the preceding quarter) .
@FedFRASER