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FEDERAL RESERVE BANK 3 ^ p" -4 " .-3 \/v ot for publication- of K A N S A S ^ ' CITY 1962 Research Library BANKING AND MONETARY DEVELOPMENTS IN SEPTEMBER 1962 Total commercial bank credit9 seasonally adjusted, increased further in Septembero Total loans increased substantially as security loans rose sharply and other major loan categories also increased0 Holdings of IL S» Government securities declined* The money supply increased somewhat and time deposits at commercial banks rose substantially further» Total reserves and required reserves increased while free reserves declinedo Bank credit» Total credit at commercial banks9 seasonally adjusted9 increased $1<>7 billion further in September0 Total loans rose a record $2*4 billion9 reflecting a sharp rise in security loans as well as continued substantial growth in business and real estate loanso Holdings of Uo So Government securities declined* Shifts within commercial bank Government portfolios reflected the effect of the Treasury°s advance refunding which resulted in an exchange of $4<>7 billion of notes and certificates maturing in February and May 1963 for new 5-year notes and 10-year bonds0 Holdings of non-Government securities were unchanged following rapid growth around mid-year and more moderate expansion over the past two months» Total credit growth in September was larger than usual at both weekly reporting banks in leading cities and at banks not reporting weeklyj in each case9 loan growth was large0 Seasonally adjusted business loans at all commercial banks increased $500 million in September9 about the same as in August and more than in most other recent months0 At weekly reporting banks in leading cities9 borrowing over the mid~September tax and dividend payment period was somewhat larger than in the comparable period last year» Corporate taxes were about the same in the two years and maturing tax securities were available in both years* Over the month of September9 loans to metals processors and to public utilities, which usually increase substantially over tax and dividend payment months 9 accounted for about half the unadjusted rise in business loans at city banks0 Borrowing by metals processors was larger than in the comparable period of other recent years and that by public utilities about the sameG Loans to food processors9 commodity dealers9 and trade concerns rose about seasonallyo Loans to textile concerns declined slightly as is usual while those to petroleum and chemical concerns9 which normally increase in September$ also declined» On the other hand% net new borrowing by "other manufacturing and mining concerns" was larger than usual# Security loans, seasonally adjusted, increased $1 billion in September9 an unusually large rise. Loans to U. Se Government security dealers increased sharply around mid-September, associated in large part with the Treasury's advance refunding operation, and remained at unusually high levels through the rest of the month• Loans for purchasing and carrying non-Government securities which had begun to increase in August rose further over September* Real estate loans at all commercial banks showed further substantial expansion in September. Over the past six months, growth in these loans has exceeded that in the comparable six months of the 1959 and 1955 expansions. Consumer loans continued to rise moderately* Loans to nonbank financial institutions also rose over August and September* Money supply* The daily average money supply, seasonally adjusted, increased $500 million between the second half of August and the second half of September following a reduction of $900 million in the previous month. In late September, the money supply was about 1 per cent above the level in September a year ago and about 1/2 per cent below the 1961 year-end level* Average time and savings deposits at all commercial banks increased $900 million in September, This was a larger rise than in August and not too different from that of other recent months» Over the past six months these deposits have increased at an annual rate of about 13 V e r cent. While this is below the exceptionally rapid growth rate of 25 per cent in the first quarter, it is the same as in late 1960 and 1961$ when growth was much more rapid than in most other postwar yearso At weekly reporting banks in leading cities, savings deposits increased at a slightly more rapid rate in September than in August while other time deposits of individuals, partnerships, and corporations rose at about the same rate in both months* The seasonally adjusted annual rate of demand deposit turnover at banks in 3^3 centers outside New York declined to 31 <>1 in September (preliminary) from 31 <>6 in August* The September rate was lower than in any other month since February* Over the first three-quarters of the year, however, turnover averaged 8 per cent above the corresponding months last year. Bank reserves* Total reserves and required reserves of member banks increased in September. Excess reserves declined to $460 million while borrowings from the Federal Reserve dropped somewhat to $80 million* This free reserve level of $ 3 8 0 million compared with levels of about $440 million in July and August* At city banks, reserve positions shifted to net borrowed reserves and at country banks, free reserves declined. The effective rate on Federal funds remained high in September, averaging 2*89 per cent compared with 2*95 per cent in August. It was consistently at 3 per cent over the entire first half of the month and at 2-3/4 to 3 per cent in the second half. During September, on a daily average basis, reserves were supplied by an increase in float. Reserves were absorbed by some further gold outflow, a small rise in currency in circulation, and a reduction in System holdings of U. S. Government securities. Sales of securities were heavy around the midmonth when float was rising sharply but were offset in part by subsequent substantial purchases. Revision of monthly commercial bank data based on June 30 call. Data for assets and liabilities of all commercial banks have been revised on the basis of the June 30 call. Data for June 30 have been substituted for the June 27 data previously used. Other monthly data have been revised beginning, in most cases, in April. Revisions in estimates for nonmember banks resulted in an increase in total loans and investments of about $400 million. This was reflected largely in an upward revision of the loan level. Smaller upward revisions in U. S. Government security holdings were about offset by small downward revisions in holdings of other securities. Total loans and investments were almost $1 billion higher on June 30 than on June 27 after the $400 million upward adjustment had been made in the June 27 figures for nonmember banks, A tabulation for weekly reporting banks as of June 30 indicates that total loans and investments at these banks, exclusive of interbank, rose $945 million between June 27 and June 30, However, over the reporting week, June 27-July 4, total loans and investments declined $49 million indicating that the decline in the four days following June 30 was $994 million. Loans accounted for a large part of this fluctuation. Total loans excluding interbank, increased $625 million between June 27 and June 30 and declined $645 million between June 30 and July 4, Business loans rose $181 million and subsequently declined $352 million; security loans rose $346 million and declined $321 million. Changes in other loan categories were smaller and in some cases in the opposite directions. Holdings of U. S. Government securities increased $226 million between June 27 and June 30 and then dropped $449 million in the following four days. Holdings of other securities increased $94 million between the last Wednesday and June 30 and then an additional $100 million in the first four days of July. Banking Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System. October 17, 1962. 1.4.3 - EXHIBIT A. Part 1 LOANS A N D INVESTMENTS AT A l l COMMERCIAL BANKS [last Wednesday of m o n t h , s e a s o n a l l y Billiens of dollars adjusted TOTAL LOANS AND INVESTMENTS U. $. «0VT. SECURITIES r OTHER SECURITIES 19SS 1SS7 195* 19*0 19*1 1 19*2 19*3 | Exhibit A - Part II Total 1/ Date Loans 1/ (In'billions of 1959—Dec. 1962~Jan. Feb. Marcl April May June July Aug. Sept. 1/ 31 31 31 31 31 166.4 181.0 185.7 194.5 209.6 - • 91.4 95.6 107.8 114.2 121.1 31 28 28 25 30 30 25 29 26 210.7 213.3 215.2 215.0 216.4 220.3 217.8 220.3 222.0 120.8 122.6 123.8 124.5 124.8 126.6 126.1 127.3 129.7 r r r r p Adjusted to exclude interbank loans, r - Revised I U. S. Gov't. securities ollars) Other securities 57.0 64.9 57.6 59.6 64.7 17.9 20.5 20.4 20.7 65.7 24.2 24.6 25.3 25.9 66.1 66.1 64.6 65.5 66.6 64.1 65.0 64.3 23.8 26.1 27.1 27.6 28.0 28.0 14 3 — EXHIBIT B, Port 1 LOANS AT ALL COMMERCIAL BANKS Billions el dollars^ SO Lait Wedneiday of month, seasonally adjusted RIAL ISTAll 1940 1**1 Exhibit B - Part II Real Estate Business Date (In bil l i o n s of Consumer d o l l a r s ) 15.7 15.9 1957—Dec. 1958—Dec. 1959—Dec. 1960—Dec. 1961—Dec. 31 31 31 31 31 35.3 35.4 39.5 42.1 44.1 23.0 25.2 28.7 30.3 20.5 1962—Jan. Feb. March April May June July Aug. Sept. 31 28 28 25 30r 30 25 r 29 r 26p 44.1 44.2 44.5 44.8 45.0 45.5 45.5 46.0 46.5 30.4 30.6 30.9 31.2 31.6 32.0 32.4 32.8 33.2 21.1 21.2 21.4 r - Revised p - Preliminary - 28.O • Security 18.8 21.0 21.6 21.8 22.0 22.0 22.2 22.4 3.8 4.1 4.2 4.3 5.2 4.8 5.5 6.0 5.6 5.2 5.3 4.4 4.7 5.7 Exhibit C Changes in Loans and Investments at all Commercial Banks, Seasonally Adjusted (In billions of dollars) 19 6 2 19 6 1 Item Sept. Oct. Nov. Dec. Jan. Feb. Mar. +&Z +0.4 +1.2 +1.2 +1.1 +2.6 +1.9 U. S. Gov't, securities +1.0 - 0 . 8 —0*6 +1.0 +0.4 Other securities +0.6 +0.4 +0.2 +0.4 +0.4 Loans 2/ +1.1 +1.2 +0.8 +1.7 -0.3 +0.2 +0.3 1/- +0.1 +0.2 Consumer -0.2 +0.1 +0.1 Security +0.3 +0.2 Nonbank financial +0.3 +0.2 +0.2 +0.1 +0.2 +0.1 +0.3 +0.1 +0.2 +0.1 +0.1 +0.2 +0.3 Loans and investments 2/ Business Real estate y Agriculture All other +0.2 y y y y Apr. J u l y y Aug. 3/ Sept.p May 3/ June —0 n 1 +1.4 +3-9 -2.5 +2.5 +1.7 -1.5 +0.9 +1.1 -2.5 +0.9 -0.7 +0.7 +0.6 +0.2 +1.0 +0.5 +0.4 y +1.8 +1.2 +0.7 +0.3 +1.8 -0.5 +1.2 +2.4 +0.1 +0.3 +0.3 +0.2 +0.5 y +0.5 +0.5 +0.1 +0.2 +0.3 +0.3 +0.5 +0.4 +0.4 +0.4 +0.4 y +0.1 +0.1 +0.2 +0.2 +0.2 +0.2 y +0.2 +0.2 y —0.4 +0.7 +0.5 -0.4 -0.4 +0.1 -0.9 +0.3 +1.0 -0.1 +0.2 -0.1 +0.1 +0.3 —0.1 +0.2 +0.1 +0.1 -0.1 +0.1 +0.1 -0.4 y +0.2 +0.2 +0.1 y +0.8 +0.3 y y y y +0.4 y y +0.2 NOTE—Individual loan items may not add to change in total loans because; (1) loan items are gross of valuation reserves while total loans are net; and (2) loan items and total loans are independently seasonally adjusted. Seasonally adjusted loans, by category, are experimental and are subject to revision. 2/ Less than $50 million. 2/ Adjusted to exclude interbank loans. 3/ Data revised on basis of June 30, 1962, call* p - Preliminary # # # # # # # # # # Exhibit D Changes in Loans and Investments at All Commercial Banks, at Weekly Reporting Banks, and at Other Banks, Not Adjusted for Seasonal. (In billions of dollars) Last Wednesday of August to last Wednesday of September Item 1962 1961 All commercial banks Total loans D. So Gov't, securities Other securities Total Weekly reporting banks Total loans U. S„ Gov't, securities Other securities Total Other banks Total loans U. So Gov'to securities Other securities Total 1960 +1,0 +1.1 +0o2 7275 +2„3 =0o3 +0. 1 +2,2 +1.5 + 1o0 +0.4 +2.8 +0.8 +0.4 +0.2 +1 +0.2 1959 1958 1957 1956 +1.0 +0.5 -1.4 +0.4 +0.7 -0.3 +0.2 +0.9 +0.5 +0.9 +0.4 —0.4 +0.6 -1.1 +0.2 +0.2 +0.7 -1.1 -1.4 =0.4 -0.9 +0.1 +0.5 +0.1 +0.1 +0.3 y +0.3 +0.1 +0.1 +0.1 —0.2 +0.2 —0.5 +0.1 +0.3 +0.3 +0.2 T O Kwd of December to last Wednesday of September Item All commercial banks Total loans U. So Gov'to securities Other securities Total Weekly reporting banks Total loans U. So Gov't, securities Other securities Total Other banks Total loans U, S„ Gov'to securities Other securities Total 1962 1961 1960 +6.7 -2.3 +3.5 - 1 . 2 +8.7 +1.4 +5-1 +2.4 +9.0 +2.8 =0.8 -3.4 +3.9 +1.1 +6.3 +1.9 +3.8 +1.5 +2.2 +1.3 1957 1956 -0.6 +2.6 2/+1.9 +8.6 - 2 . 7 + 0 . 8 +0.6 +5.2 -4.6 =0.1 +0%? +4.8 -6.5 —2.2 1959 1958 2/+8.8 2/-7.2 2/+0.1 -Qe 1 +6.5 +3.3 -4.0 =0*4 +5.0 +1.6 -1.1 T O =1 «3 2/+4.0 2/-0.7 +1.4 2/+3.7 +3.0 -0.2 2/+0.2 +2.0 +1.9 —0.6 +1.5 NOTE—Data exclude all interbank loans; call report data for weekly reporting banks used when available. 1/ Less than $50 million. 2/ As a result of bank structure changes, total credit increased about $1 billion I $600 million in loans $ $300 million in U. S« Gov't, securities;and $100 million in other securities. Exhibit E Changes in Commercial and Industrial Loans at Weekly Reporting Banks (In millions of dollars) Business of Borrower Food processors Commodity dealers Trade concerns Total Sales finance Metals and products Textiles, apparel, etc. Petroleum, coal, etc. Other manufacturing and mining Public utilities Construction All other types of business Classified Unclassified Total change Total change excluding sales finance 2/ 2/ 3/ End of August to end of September 3 / 1962 1961 1960 1959 1958 1962 1961 1960 1959 1958 +154 + 41 + 61 +158 +143 + 46 +256 -343 -223 -417 -557 +271 -391 -151 +194 ^545 —189 -131 +366 + 46 -503 + 93 + 46 +395 +167 + 36 + 71 +27% 1/ 1/ - 88 g/+455 -1,007 - 97 - 24 + 84 + 40 - 12 + 33 +106 +385 -133 -401 +220 - 71 +361 -127 +347 : 32 - 23 73 22 70 +603 -210 +212 +211 +244 -282 +427 +18 +266 +255 - 5 + 21 + + + + +193 +164 -237 + +130 +105 +116 +256 - 36 + ?1 +213 + y 1/ +113 + 24 - 14 - 40 - + 52 +203 - 3 + 24 + 3 +193 29 + 42 + - 17 2 + 82 65 - 26 + 15 + 42 +191 + 9 + 41 25 -617 y y y 96 +537 +707 +256 +721 + 24 -129 - 81 -713 -256 + 64 -168 +223 +591 + 30 +461 = 38 +606 +608 -119 +437 - 4 +825 +318 -273 + 16 +1,173 - 35 +2,124 + 90 -1,814 -211 +621 +423 +571 +489 +433 +1,143 -257 +1,072 +2 ,'214 -2,025 +621 +423 +571 +489 +521 +1,143 +1,072 +1,759 -1,018 Not included in business loans on revised basis. Through July 1. Four weeks used throughout. End of December to end of September -257 -100 • • • T 1960S 1961s 1962s • • • • • • Exhibit F Loans and Investments at All Commercial Banks (In billions of dollars) Date 1956s 1957s 1958: 1959s • Loans and investments u. s. Govt, securities Other securities Total loans Business Real estate 38.7 Security Farm Consumer Nonbank financial institutions All other Dec. Dec. Dec. June June Dec. Dec. 31 31 31 24 (old) 24 (new) 31 1/ 31 164.5 169.3 184.4 184.2 184.2 189.5 198.5 58.6 58.2 66.4 60.9 60.9 58.9 61.0 16.3 17.9 20.6 20.6 20.6 20.5 20.9 89.7 93.2 97.5 102.8 102.8 110.0 116.7 40.5 40.4 42.5 37.8 40.2 43.1 22.5 23.1 25.3 26.9 26.9 28.1 28.7 4.3 4.2 4.7 4.1 4.1 4.9 5.1 4.2 4.1 5.0 5.0 5.0 5.0 5.7 14.6 15.8 15.9 17.5 17.5 18.8 20.6 5.9 7.1 7.1 6.9 7.2 8.2 8.8 7.6 8.1 8.7 Aug. Sept. Oct. Nov. Dec. 30 27 25 29 30 203.0 207.5 64.2 66.1 66.6 66.2 66.6 22.5 23.3 23.2 23.4 23.9 116.3 118.1 118.5 119.5 123.9 42.5 43.0 43.2 43.6 45.2 29.7 29.8 29.9 30.1 30.3 4.6 5.1 5.2 5.0 6.2 5.8 5.8 5.9 6.0 6.2 21.2 21.0 21.0 21.0 21.1 5.9 6.4 6.1 6.3 7.3 9,1 9.4 9.6 9.9 10.2 Jan. Feb. Mar. Apr. May June July Aug. Sept. 31 28 28 28 30 30 25 29 26 210.9 211.6 212.4 214.8 67.2 66.0 64.4 64.7 64.4 64.4 64.2 63.9 64.3 24.1 24.5 25.4 26.1 26.1 27.0 27.5 27.9 28.2 119.6 121.1 122.6 124.0 124.8 43.4 43.7 44.8 44.7 45.0 45.9 45.2 45.7 46.5 30.4 30.5 30.7 31.1 31.5 32.0 32.4 32.8 33.3 4.7 5.4 5.4 5.7 5.1 5.3 4.4 4.6 5.8 6.4 6.6 6.6 6.7 6.6 6.8 6.7 6.2 6.2 21.0 20.9 21.1 21.4 21.7 22.0 22.2 22.4 22.6 6.4 6.4 6.5 6.5 6.6 7.2 10.0 10.1 10.2 10;5 10.8 11.1 11.0 11.1 11.5 208.3 109.1 214.4 r r r r p 215.3 219.2 217.8 219.0 223.1 127.7 126.1 127.3 130.6 — •»«=» 6.9 7.2 7.4 p - Preliminary. J/ 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 million5 business loans $100 million; consumer loans $100 million5 and other loans $100 million. NOTE—Data exclude interbank loans. Total loans are after and types of loans before deductions for valuation reserves. Consumer and "other loans" are partly estimated for all dates. Other data are partly estimated on all but June and December call dates. Beginning June 24, 1959« "business loans" and "all other loans" have been revised to exclude loans to nonbank financial institutions. Exhibit G Ratios to Total Deposits 1/ U„ S. Govt. securities maturing within one year L O A N S $ Date 1948: #49: 1950: 1951: 1952: 1953: 1954: #55: 1956: 1957: 1958: 1959: 1960: A W 1961: A w 1962: # All commercial banks Total Member banks Reservre city banks City of New York Other Chicago City All commercial banks Country 2/ 2/ 2/ 14.2 19.2 Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. 31 31 31 31 31 31 31 31 31 31 31 31 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 31.3 30.9 36.1 37.6 39.9 41.1 40.7 46.7 50.1 5.1.0 49.4 55.6 56.5 35.9 34.9 42.5 46.3 50.6 50.6 46.8 56.7 61.7 61.9 57.7 67.3 65.9 30.4 25.6 32.3 36.2 38.9 39.1 38.3 46.3 52.7 55.2 49.4 58.2 60.8 33.4 32.4 38.1 39.4 41.1 42.2 41.9 48.5 52.7 53.3 51.3 58.2 59.0 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 Aug. Sept. Oct, Nov. Dec. 31 27 25 29 30 55.1 54.7 54.3 54.7 54.5 56.1 55.7 55.3 55.7 55.7 62.8 57.1 58.6 63.6 56.6 62.9 63.5 57.9 57.7 65.0 5 8 = 0 57.9 57.7 58.3 57 0 7 51.1 50.7 50.2 50.5 50.2 11.4 11.8 11.4 10.4 10.6 Jan. Feb. Mar, Apr. May June July Aug. Sept. 31 55.3 56.0 56.5 56.5 63.0 28 28 25 30 r 30 25 r 54.1 54.9 55 » 4 55.4 55.8 55.9 55.6 5 6 . 8 5 8 . 8 57.7 2 9 R 5 6 . 0 26p 56.4 59.2 58.3 57.3 57.5 56.5 57.1 58.3 58.4 59.1 59.0 59.3 59.5 59.7 50.1 50.8 51.2 51.3 51.8 52.1 51.7 51.7 51.6 10.9 11.7 10.6 10.9 11.1 10.7 10.7 11.9 n0a0 ^ 5 6 . 8 56.8 56,5 57.0 57.6 64.7 65.8 65.4 64.4 63.6 63.0 6 5 . 8 68.8 58.6 5 8 . 0 15.2 9.8 11.7 16.9 10.0 5.1 7.5 8.4 8.3 6.7 8.1 Total loans (adjusted to exclude loans to banks)5 Do S 0 Government securities maturing within one year estimated on basis of Treasury survey of ownership and total deposits (adjusted to exclude cash items in process of collection) <> 2/ Prior to 1951 * data are on call basis and beginning in 19519 they are on maturity basis* On a call basis, data for 1951 and 1952 are 21*5 and 19*1 respectively* NOTE: Comparability of figures affected by changes in Federal Reserve membership, mergers9 0 etc®1 by changes in the reserve classification of cities or individual banks, and by changes in items» Beginning August 19629 figures for both New York City and the City of Chicago include banks formerly classified as central reserve city and three banks whose classification as reserve city is continued0 p - Preliminaryo r - Revised. 1.4.3. - EXHIBIT H, Part 1 DEPOSITS A N D CURRENCY Semi-monthly average* of daily figures, seasonally Billions adjusted of d o l l a r s 160 150 MONEY SUI PLY I 140 — no" 120 uT Too" 90™ To* TIME AND SAVINGS DEPOSIT! 7(T 60 __ = u , s, GOVT, DEPOSITS*Not adjusted for seasonal 19*2 1957 1943 ^AH c o m m e r c i a l bonks. Exhibit H - Part II Seasonally adjusted data Money supply Period Total Demand deposits Currency Time and savings deposits U. S. Gov't, deposits (In billions] of dollars) 1959--iJec. (2) 1960--Dec. (2) 1961--Dec. (2) (2) (1) (2) July (1) (2) Aug. (1) (2) Sept. (1) • (2) p 1962--May June 141.8 141.2 146.0 113.0 112.2 116.4 29.6 145.3 145.6 145.5 145.7 145.7 145.6 144.8 145.4 145.3 115.3 115.5 115.3 115.5 115.5 115.4 114.6 115.2 115.1 30.0 28.8 28.9 30.1 30.2 30.2 30.2 30.2 30.2 30.2 30.2 82.7 5.2 5.3 5.5 89.8 7.7 67.4 73.0 90.4 90.9 91.6 91.9 92.2 92.7 93.1 93.6 6.1 8.3 8.2 6.0 5.4' 8.1 6.6 7.9 1.4.3 - EXHIBIT I, Part 1 TI ME A N D S A V I N G S DEPO SITS A T M E MBER B A N K S I N L E A D I N G . C m ES Wednesday Billions figure % of d o l l a r s 55 50 TOTAL JLF IE AND SAVINGS DEPOSITS 45 40 35 SAVINGS DEPOSITS 30 1 25 N W TIME DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS P v U - i J 1 1 A 1 L—J O 1 J 4- D I , I A F I 10 1 4 I L A 1 O 1 I D 1 F 1 1 A 1962 1961 L 1 J 1 1 A 1 L-Wx\zJ O 5 D 1963 Exhibit I -Part II Time and Period Total (In Savings mi 1 1 i 0 n s S a v i n g s Depo s i t s Individuals, partnerships, and corporations of d o l l a r s ) Other time deposits 1/ 1961—April 26 Dec. 27 38,175 41,472 27,819 30,082 5,480 5,969 4,876 5,421 1962—April May June July Aug. 25 30 27 25 29 45,513 46,484 47,077 47,257 47,729 31,740 32,116 32,539 33,044 33,404 7,804 8,322 8,511 8,296 8,428 5,969 6,046 6,027 5,917 5,897 - Sept. 5 12 19 26 47,723 47,901 47,903 48,093 33,481 33,552 33,631 33,734 8,402 8,548 8,457 8,535 5,840 5,801 5,815 5,824 1/ Includes States and political subdivisions, U. S. Government, foreign government# and official institutions, and interbank. » • • • • • • e e # e Exhibit J Member Bank Reserves (Based on averages of daily figures; in millions of dollars) Date Monthly averages: 1956: December 1957: December 1958: December 1959: December 1960s December 1961: 196,2; All member Reserve City Banks City of New York Other Chicago City - 36 -133 - 41 -424 669 - 91 -105 - 80 -109 10 July August September October November December 530 537 553 441 509 424 7 7 2 12 14 - 50 January February March April May June 546 434 379 440 434 370 41 11 - 24 50 10 - 12 July August September p 442 437 383 18 7 - 20 NOTE: - 86 - 77 - 32 -104 - 4 Borrowings Total reserves held seasonally adjusted All member All member All member 651 577 516 481 756 688 710 557 906 87 17,643 17,560 18,494 18,540 581 51 67 37 65 105 149 19,025 19,242 19,411 19,640 19,792 19,704 70 68 91 69 63 100 19,812 19,789 19,764 19,822 19,957 19,984 89 20,006 19,941 20,077 Excess reserves Free reserves (excess reserves minus borrowings) Country -203 -228 -197 -449 80 344 277 268 237 56 44 50 - 22 13 24 567 484 499 446 494 471 2 3 6 20 3 3 20 22 15 9 36 - 4 483 404 394 401 385 389 502 470 509 497 470 6 - 14 - 10 3 416 441 412 531 564 463 1 2 - 24 - - 13 8 2 5 8 3 604 589 507 614 573 616 127 80 18,887 Beginning July 26, 1962, figures for both New York City and the City of Chicago include banks formerly classified as central reserve city and three banks whose classification as reserve city is continued* p - Preliminary. Exhibit K Liquid Assets Held by the Public ~ Seasonally Adjusted Series (Amounts in billions of dollars; ratios expressed as percentages) End of year of month Total liquid assets Time deposits Demand adjusted 1/ deposits adjusted Commer= Mutual and savings cial currency banks 2/ banks outside banks 1/ 50.7 56.4 63.4 31.6 1956 1957 1958 1959 1960 339-9 351.7 368.9 388.7 396.0 134.5 133.6 140.2 139.2 66.2 1961s May June July Aug. Sept. Oct. Nov. Dec. 408.1 413.2 414.4 414.4 417.2 420.9 420.6 424.6 2/140.8 140.9 141.5 141.3 141.9 143.8 143.4 144.8 2/77.4 78.4 79.0 79.8 81.4 82.5 82.4 37.7 38.1 38.3 38.3 38.6 38.7 38.9 39.1 1962s Jan. Feb. Mar. Apr.r May r June r Julyr Aug. r Sept.p 425.7 430.6 435.3 438.9 437.6 442.5 443.7 447.0 n* a* 143.7 144.4 144.0 145.8 143.5 143.3 144.3 142.9 144.4 84.8 39.2 138.8 71.7 80.6 86.2 87.6 88.3 89.6 90.9 91.5 92.6 93.8 33.0 35.1 35.9 37.1 39.4 39.6 39.8 39.9 40.3 40.7 40.8 41.1 Savings and loan shares y U„ S. Govt, savings bonds y U. S„ Govt, securities maturing within one year 5/ Gross national product y T 31.3 35.3 33.4 44.1 39.1 37-0 41.7 47.7 54-3 54.8 51.7 65-2 65.9 47.2 47.2 47.3 47.3 47.4 47.3 47.3 47.6 39.8 42.7 41.8 40.4 40.7 40.8 47.6 47.5 47.5 47.4 47.4 47.4 47.5 47.5 n.a. 39.2 41.3 43.9 44.3 43.2 45.9 44,5 46.9 n.a. 61.8 66.5 67.3 6 8 . 0 68.9 69.7 70.5 71.2 71.8 72.7 73-3 74.0 74.7 75.2 76.3 n.a. 50.5 48.0 47.1 38.8 40.2 430.0 442.3 460 06 488.5 503.3 513.1 522.3 538.6 R a t Commercial bank deposits + currency to total liquid assets ((2+3)41) 9 54.5. 54.0 54.8 53.1 53.3 53.5 53.1 53.2 53.4 53.3 53.5 53.7 53.5 53.7 53.6 545.0 552.0 5 3 . 2 53.3 53.3 52.9 53.1 52.7 n.a. i o Total liquid assets to GNP 10 78.8 79.3 79.4 79.4 78.3 79.5 79-4 78.1 78.7 79.5 Exhibit K (Continued) p - Preliminaryo e - Estimated0 1/ Data for demand and time deposits adjusted and currency outside banks are as of last Wednesday of month, except that time deposits are as of June 30 and December 31 when call data for these dates were availablee Demand deposits adjusted are total demand deposits less interbank and IL S* Government demand deposits and cash items reported as in process of collection» Time deposits adjusted are total time deposits less interbank and IL S, Government time deposits* 2/ Includes savings deposits in the Postal Savings System0 3/ Prior to 1955 data are Board estimates based on monthly figures of inflow of new savings and withdrawals of savings capital compiled by the Federal Home Loan Bank Board« 4/ Includes all types of savings bonds held by investors other than banks and U* S„ Government agencies and trust funds„ 5/ Beginning May 1953 includes all marketable securities maturing within one year (adjusted to include partially tax exempt securities 12 months prior to first call date) and, prior to 19569 nonmarketable Treasury savings notes with maturities up to 36 months; figures include holdings of insurance companies* brokers and dealers9 State and local governments% nonbank corporations, corporate pension funds9 non-profit institutions, foreign accounts9 and individuals; prior to May 1953 includes securities callable within one year, 6/ Gross national product estimates are available quarterly and annually onlyu For 1950-60 ratios are for last quarter of year; for 1961 and 1962? for each quarter of yearQ Data for total liquid assets and for money supply used in computing these ratios are quarterly averages for four dateso each month of the current quarter and the last month of the preceding quartere 7/ ~ Demand deposits adjusted (before seasonal adjustment) was increased by $400 million and time deposits adjusted (before seasonal adjustment) was increased by $1*5 billion due to the reclassification of deposits of foreign official institutions which formerly were grouped with interbank deposits and excluded from demand and time deposits adjusted.
@FedFRASER