The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
L.4. 3 Not for publication St-^ ^ - i969 September 17, 1969. Research Library ' BANKING AND MONETARY DEVELOPMENTS IN AUGUST 1969 Summary, Commercial bank credit declined slightly in August following little change over the June-July period. Banks liquidated a substantial volume of municipal and Federal agency issues for the second month in a row and bank holdings of U.S. Government securities were unchanged despite heavy bank participation in the late-month Treasury bill financing. Security loans declined—as System matched sale-purchase agreements in effect at the end of July expired--approximately offsetting a substantial rise in business loans. Other major loan categories remained relatively unchanged. The money supply declined in August, about reversing the increase in July. U.S. Government deposits rose somewhat following 2 months of sharp decline. Time and savings deposits dropped further--although less sharply than in Julyreflecting continued heavy attrition of large negotiable CD s and further substantial outflows of consumer-type time and savings deposits. Net borrowed reserves averaged somewhat below the July level. Total and required reserves continued to decline. Changes in Commercial Bank Credit Money Supply and Time Deposits (Seasonally Adjusted) Annua: rate (per cent) Year Total loans and investments 1968 First Second First Half Half Half 2.3 -17.9 -21.5 4.3 -12.0 -9.5 -3.6 -12.0 11.2 1.3 7.4 1.8 14.0 16.8 4.3 12.2 12.9 6.8 3.8 3.6 2.0 3.0 -4.8 17.1 -5.0 -4.9 -13.6 -8.1 -15.3 15.0 3.0 2.3 3.6 Other securities 16.4 8.1 23.8 -0.3 Total loans 11.6 7.2 15.5 9.1 Business loans 11.1 7.6 14.1 7.0 7.0 11.3 5.1 Time and savings 'deposits at all commercial banks -0.9 -0.2 6.5 Money supply August 3.9 3.0 11.0 U.S. Gov't, sec. r 1969 Jan. Jan. - JuneMay : August August - — — Note: beginning uuiy i?v?, u a n i x v j . c u . l l ^ — •— ~ # 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 data revised beginning June 1967 due to a change in accounting procedures to eliminate a downward bias resulting from- the generation of cash items in the process of collection associated with Euro-dollar transactions. Bank credit. Loans and investments at all commercial banks declined $300 million in August, with large banks showing a greater than usual reduction and smaller banks a less than usual increase. Security loans dropped sharply during the month primarily because of a run-off in loans associated with the expiration of matched sale-purchase agreements that the System made with Sealers in late July. Excluding these transactions, bank credit rose $900 million. Total loans increased $100 million in August--or $1.3 billion if matched sale-purchase transactions are taken into account. Business borrowing was stronger than in June and July, and accounted for more than four-fifths of the gain in total loans. Real estate and consumer loans continued to expand at the reduced pace of other recent months. Bank holdings of municipal and Federal agency issues declined $700 million in August--a substantial liquidation although somewhat smaller than that in July. Earlier in the year, there had been no overall change in these holdings following heavy net acquisitions in late 1968. The August reduction was concentrated at weekly reporting banks--especially those outside New York City--and continued to be mainly in holdings of municipals. Holdings of U.S. Government securities were unchanged in August despite the fact that banks underwrote the $2.1 billion Treasury bill strip (payable 100 per cent in tax and loan accounts) delivered on August 25. Subsequent run-offs of the newly-acquired bills appeared especially heavy at large banks outside New York. Earlier in the month, banks had sold a substantial volume of bills,and holdings of short-term coupon issues were reduced through attrition of the August 15, 1969, notes not exchanged in the mid-month refunding. The relatively large August increase in business loans followed two months in which these loans, after adjusting for loans sold by banks to holding companies and affiliates, rose only moderately. On balance, since the end of May, business loan expansion has been at a much slower pace than earlier in the year. At weekly reporting banks, both in New York City and outside, business loans (not adjusted for seasonal) declined in August by about the same amounts as in the corresponding weeks last year. Among industries, repayments were smaller than usual by retail trade, machinery, transportation equipment, and public utilities. Money supply and time deposits. The money supply declined $800 million in August about reversing the July increase. Over the June-August period, money supply rose about $330 million on a monthly average basis compared with about $600 million over the first five months of 1969 and more than $1 billion over the year 1968. U.S. Government deposits rose somewhat in August after declining substantially in the previous two months. Time and savings deposits declined $2.5 billion in August—considerably less than the unusually sharp drop in July but about three times as rapidly as over the first half of the year. Attrition of large negotiable CD's continued heavy, with the bulk of it occurring—as in July--at banks outside New York and Chicago. Consumer-type time and savings deposits also declined substantially in August but by much less than in July following midyear interest 4 -3crediting. Declines, however, continued large at banks in New York City and were primarily in time certificates and open accounts. At other large banks, outflows of savings deposits were considerably smaller than in July but outflows of consumer-type time deposits were somewhat larger. At country banks, outflows of time and savings deposits continued in August but at a pace sharply reduced from that in July. Bank reserves. Net borrowed reserves averaged about $1,000 million over the five weeks ending August 27, compared with $1,050 million in July. Member bank borrowings were reduced further but excess reserves also declined somewhat. Total and required reserves also continued to decline although less sharply than in July. 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 Billions of dollars Last Wednesday of month, seasonally adjusted I II III IIII I III I IIIII 400 TOTAL LOANS AND INVESTMENTS 300 LOANS 200 80 OTHER SECURITIES U.S. GOVT. SECURITIES 40 M J 1966 * CHANGE IN SERIES. M J 1967 M J 1968 M J 1969 Exhibit A - Part II Loans and Investments at All Commercial Banks (Seasonally Adjusted) Date Total Loans ( I n b i l l i o n s Other securities U.S. Gov't, securities of d o l l a r s ) 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 r 263.0 60.8 58.1 57.4 57.6 56.0 r 56.0 71.4 71.5 71.9 71.7 71.5 71.4 395.2 268.0 56.0 71.2 395.7 395.4 268.8 269.2 56.6 56.6 70.3 69.6 30 e(new series)4 y July 30 Aug. 27 June P 2/ 3/ - • Dovie oH a - F.stimal 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. NOTE;eechart has^not been completely revised for changes in data relating to December 1968 benchmark revision. Overlapping data for March 1969 are shewn. L.4.3- EXHIBIT B, P a r t i LOANS AT ALL COMMERCIAL BANKS Billions of dollars Last Wednesday of month, seasonally adjusted I I I I | 110 100 BUSINESS 90 80 70 60 REAL ESTATE 50 40 CONSUMER 30 SECURITY 1966 1967 1968 1969 Exhibit B - Part II Loans at All Commercial Banks Seasonally Adjusted Date .Business (In Real Estate b i l l i o n s Consumer oi Security d o l l a r ' 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. 29 26 26 30 28 30 30 2/ 27 p 97.7 99.1 99.8 101.2 102.6 102.6 102.6 103.7 65.7 66.4 67.1 67.7 68.1 68.4 68.5 68.7 45.3 45.5 45.8 46 .2 46.4 46.6 r 46.7 46.8 9.4 10.4 8.8 8.9 9.3 8.9 9.7 8.5 1/ Estimated as of December 31. p - Preliminary r - Revised e - Estimated 2/ 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) 1969 i 1968 Item July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. p May p June p 4/ July p— A u g . p - 0.4 + 0.5 - 0.3 Loans and Investments 2/ + 8.1 + 4.5 + 4.2 + 4.8 + 2.2 + 3.0 4- 1.3 + 2.0 - 1.1 + 3.1 + 0.9 U. S. Gov't, securities + 2.7 + 0.8 4- 0.1 + 0.2 - 3.2 + 0.5 - 0.7 - 2.7 - 0.7 + 0.2 - 1.6 O t h e r securities + 0.5 + 1.1 + 1.5 + 1.5 + 1.7 + 1.3 c - 0.1 + 0.5 - 0.2 - 0.2 - 0.1 - 0.9 - 0.7 Loans J2/ + 4.9 + 2.7 + 2.5 + 3.1 + 3.7 + 1.2 + 2.1 + 4.7 - 0.9 + 3.1 + 2.7 r - 0.3 + 0.8 + 0.4 Business + 1.2 + 0.9 + 0.7 + 1.0 + 1.7 4- 0.8 + 1.8 + 1.4 + 0.7 + 1.4 + 1.4 1/ + 1.1 Real estate + 0.4 4- 0.5 + 0.5 + 0.8 4- 0.7 + 0.7 + 0.7 + 0.7 + 0.7 + 0.6 + 0.4 + 0.3 + 0.1 + 0.2 Consumer + 0.4 + 0.5 + 0.6 + 0.7 + 0.3 + 0.6 + 0.4 + 0.2 + 0.3 * + 0.4 + 0.2 + 0.2 r + 0.1 + 0.1 Security + 2.5 + 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 Nonbank financial - 0.1 + 0.2 1/ + 0.6 + 0.3 + 0.1 1/ + 0.5 - 0.7 + 0.8 + 0.3 - 0.5 - 0.3 + 0.3 Agriculture + 0.1 1/ + 0.1 - 0.1 - 0.2 + 0.1 - 0.1 + 0.3 - 0.1 + 0.2 1/ r + 0.3 + 0.1 + 0.1 All other + 0.4 1/ + 0.4 + 0.5 + 1.1 - 0.6 + 0.3 + 0.6 - 0.2 - 0.4 1/ r - 0.2 Total loans excluding security 3/ + 2.4 + 2.1 + 2.3 + 3.5 + 3.9 4- 1.7 + 3.1 + 3.7 + 0.7 + 3.0 + 2.3 Total loans excluding security and nonbank financial _3/ + 2.5 + 1.9 + 2.3 + 2.9 + 3.6 4- 1.6 + 3.1 + 3.2 + 1.4 + 2.2 + 2.0 1/ r + 0.6 1/ 1/ 1/ - 0.2 r + 0.1 1/ + 1.6 | r + 0.6 + 0.3 + 1.3 r - 1/ 3/ Less than $50 million. 2/ Adjusted to exclude interbank loans. c - Corrected r - Revised At large banks on a last-Wednesday basis, bankers' acceptances declined $34 million in August 1969, compared w i t h a decrease of $40 million in 4/ August 1968, and an increase of $18 million in August 1967. Changes are adjusted, where necessary, for conceptual changes in bank credit series beginning July 1969. Individual Loan Categories Are Not Available for Publication 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 Julv to last Wednesday of Auetist Item 1969 1968 1967 1965 1966 1964 1963 All commercial banks 5_/ Total loans U. S. Gov't, securities Other securities Total - 2.4 0.4 0.4 3.1 + + + 0.5 1.0 1.4 1.9 44+ 0.7 2.0 1.1 2.4 + + 0.3 1.0 0.2 0.6 + + + 1.9 0.8 0.8 2.0 + + + + 0.8 0.5 0.5 1.9 + + - 0.3 1.7 0.8 0.7 All Large Banks 3/ 5/ Total loans U. S. Gov't, securities Other securities Total - 2.8 0.2 0.4 3.4 - 1.2 4* 0.7 + 1.3 4- 0.8 444- 0.5 0.7 0.5 0.6 + + 0.3 0.9 0.3 0.3 + + + 1.3 0.8 0.5 1.1 + + + + 0.4 0.3 0.4 1.0 + + - 0.1 1.4 0.4 0.9 Other banks 3/5/ Total loans U. S. Gov't, securities Other securities Total + 0.4 - 0.2 1/ + 0.2 + 44- 0.1 1.3 0.5 1.8 -1/ + 0.1 + 0.1 + 0.3 + 0.6 1/ + 0.3 + 0.9 + + + + 0.4 0.2 0.2 0.9 + + + 0.2 0.3 0.4 0.2 444.+ 0.7 0.3 0.1 1.1 End of December to last Wednesday of August Item 1964 2/ 1963 2/ + + + 6.1 4.7 2.1 3.5 + + + 4.6 5.6 4.4 3.5 6.8 5.4 2.9 4.4 + + - 1.9 3.1 1.1 0.1 + + - 1.0 4.6 3.1 0.4 5.4 2.1 1.7 4.9 + + + 4.2 1.5 1.0 3.6 + + + 3.6 1.0 1.3 3.9 1969 1968 All commercial banks 5/ Total loans U. S. Gov't, securities Other securities Total + 5.9 -10.5 - 1.2 - 5.7 4- 9.9 - 1.0 4- 4.5 4-13.4 4- 4.3 4- 2.9 + 9.0 +16.3 +10.2 -/ +12.2 - 7.5 - 5.9 + 2.6 4/ + 4.6 + 7.0 4/ + 9.3 All Large Banks 3/5/ Total loans U. S. Gov't, securities Other securities Total - 0.3 -6.1 - 2.6 - 9.0 444- + + + 0.4 1.7 6.1 7.3 + + + 4.8 3.7 0.6 1.8 4/ 4/ 4/ 4/ + + + Other banks 3/ 5/ Total loans U. S. Gov't, securities Other securities Total + + + 4- 6.0 1/ 4- 1.8 4- 7.7 + 4.7 + 1.2 + 2.9 4- 9.0 + + + 5.4 2.2 2.0 5.2 4/ 4/ 4/ 4/ + + + NOTE: 6.2 4.4 1.4 3.2 3.9 1.0 2.7 5.7 1967 1965 1966 Data exclude all interbank loans; call report data for large banks used when available. 1/ Less than $50 million. 2J Based on estimated data for December 31, 1963, and 1962, for all commercial banks and for December 31, 1962, for large banks. 37 Based on revised coverage beginning July 1966, January 1967, 1968, and 1969. 4/ 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 at the end of June; $700 million were at weekly reporting and $300 million at nonweekly reporting. 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; $400 million were at weekly reporting banks and $700 million at other banks. 5/ Based on revised reporting beginning July 1969. See note on Page 1. Changes have been adjusted to maintain comparability of series. Exhibit E Changes in Commercial and Industrial Loans at Large Commercial Banks (In millions of dollars) Business of borrower Food processors Commodity dealefs 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 Late December to late Aueust 2/ Late Jul\ to Aueust 1/ 1969 - 69 - 64 -197 - 97 -100 -271 + 14 -178 - 40 - 67 + 59 - 42 - 90 + 4 + 15 - 61 - 28 + 12 - 57 + 17 + 15 + 19 - 34 + 12 + 41 - 49 -759 -196 -955 1968 54 18 245 217 28 395 + 37 262 112 58 + 89 2 106 14 6 69 71 49 75 + 53 + 43 260 40 17 203 + 1 999 48 -1 ,047 1967 + + - - 5 25 238 168 70 446 19 313 25 89 + 40 166 16 + 26 + 48 113 111 + 1 19 93 34 162 + 18 80 100 + 20 -1 ,172 84 -1 ,256 1966 1965 1969 1968 1967 1966 + 73 - 77 -430 -368 - 62 + 75 + 23 - 66 +140 • - 22 + 91 - 14 + 20 - 4 + 35 - 68 -108 n.a. n .a. n.a. - 14 -128 - 70 n .a. - 58 n.a. -549 -184 -733 + 62 + 54 + 30 + 27 + 3 +139 + 22 + 15 + 78 + 23 +166 + 65 - 29 + 79 + 82 - 24 - 40 n .a. n .a. n.a. + 22 + 63 - 49 n.a. +112 n.a. +669 - 16 +653 539 508 + 94 + 21 + 73 +1 ,090 + 69 + 613 + 154 + 254 + 615 + 237 + 153 + 252 + 173 28 + 393 + 234 + 3 + 156 + 360 +1 ,679 321 + 698 +1 ,302 249 +3 ,722 103 +3 ,619 625 550 + 114 33 + + 81 + 941 + 670 + 183 101 + 189 + 658 17 176 + 240 + 79 + 435 + 461 + 516 62 + 7 + 307 + 503 398 + 494 + 407 182 +2 ,188 + 128 +2 ,316 625 324 237 227 10 + 895 + 287 + 509 105 + 204 + 310 48 + 139 + 133 + 235 90 + 382 + 253 + 227 98 35 + 639 + 290 126 + 464 121 +1 ,242 + 200 +1 ,422 - 212 - 261 + 399 + 247 + 152 +1.887 + 233 + 799 + 545 + 310 + 709 + 165 + 328 + 437 + 408 + 410 + 287 n .a. n.a. n.a. + 170 + 33 - 347 n.a. + 380 n.a. +4,760 + 409 +5,169 - - - - - 1/ Four most comparaoie weeits uscu mi. vugnvuu. 2*/ Changes are compiled from December 25, 1968; December 27, 1967; December 28, 1966; December 29, 1965; ^ ~ December 1964. These data cannot be linked with all commercial bank data which are always for December 31, 3/ Prior to 1967, transportation, communication, services, and foreign loans were not reported separately. 1965 - 484 - 388 + 777 + 493 + 284 +1,248 + 165 + 526 + 198 + 359 + 607 + 247 + 232 + 319 + 282 + 198 + 482 n.a. n.a. n.a. + 295 + 359 - 302 n.a. + 661 n .a. +4,174 + 604 ' +4,778 i 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. Nov. Dec. -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. Feb. Mar. Apr. May 29 26 26 30 28 30 e 385.0 384.1 385.6 390.7 388.8 394.3 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 (new) 3/ June 30 30 July 27 p Aug. 399.2 395.7 392.6 53.9 54.5 54.1 71.8 70.5 70.1 273.6 270.7 268.3 104.8 103.3 102.2 68.4 68.6 69.0 June NOTE: ! Data exclude interbank loans. June and December call dates. Consumer and "other loans" are partly estimated for all dates. p - Preliminary. 1/ 7/ 3/ 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 10.6 10.7 10.7 46.9 r 47.2 47.3 13.6 12.5 12.4 19.3 18.5 18.3 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 r - Revised. e - Estimated Beginning June 9, 1966, $1.1 billion of balances accumulated for the payemfcnt of personal loans were deducted from time deposits and "all other" loans. 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. Individual 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- M e m b e r B a n k s Reserve Citv Banks New York City of Total Chicago Other Citv Country All commercial banks 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 1967--Dec. 30 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 63.8 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 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 1968--Jan. 31 Feb. 28 Mar. 27 Apr. 24 May 29 June 29 July 31 Aug. 28 Sept .25 Oct. 30 Nov. 27 Dec. 31* 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. Feb. Mar. Apr. May (old) June (new) June July Aug. 66.2(64.7) 67.4(65.9) 68.1(66.4) 68.4(66.7) 70.0(68.2) 71.5(69.0) 72.8(70.3) 73.2(70.5) 73.0(70.2) 68.4 69.7 70.5 70.9 72.6 74.3 75.8 76.3 75.3 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) 77.1 80.1 83.8 83.1 85.5 88.6 91.0 91.8 94.2 71.4 72.1 72.9 73.4 75.0 77.0 78.4 78.8 78.8 59.2 59.8 60.2 60.3 61.4 61.9 63.0 63.2 63.6 6.0 5.4 5.7 5.0 4.6 4.2 4.2 4.5 n.a. 29* 26* 26* 30^ 28 25 25 30 27 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.) * for-FRASER Ratios in parenthesis are those obtained by adding Euro-dollars to the deposit base. Digitized L.4.3 - EXHIBIT H, PARTI DEPOSITS AND CURRENCY AND TURNOVER OF DEMAND DEPOSITS Seasonally adjusted. Deposits, average of daily figures. Turnover, monthly. Annual rate Billions of dollars 55 225 50 205 TIME AND SAVINGS DEPOSITS ALL COMMERCIAL BANKS / 185 45 MONEY SUPPLY TURNOVER OUTSIDE N.Y.C. 232 SMSA'S 40 165 35 10 145 10 U.S. GOVT. DEPOSITS MEMBER BANKS 0 1966 * CHANGE IN SERIES. 1967 1968 1969 Exhibit H - Part II P e r i o d Total 6 13 20 p 27 p 4,259 4,530 4,920 5,020 5,872 6,202 46.1 47.4 46.1 46.8 48.0 48.4 8,545 200.1 199.2 195.8 5.4 6.7 4.8 5 9 5.9 4.0 2.4 49.1 9,877 9,655 9,868 13,228 14.324 45.3 193.3 2.9 n.a. 14,550 45.2 45.3 45.3 45.4 194.0 193.5 193.2 192.9 2.9 3.1 1.7 3.1 n.a. n.a. n.a. n.a. 14,077 14,209 14,672 14,550 184.1 185.2 186.7 187.1 187.6 191.2 190.6 191.5 193.3 194.5 195.4 195.7 195.9 197.5 197.4 198.2 199.2 151.9 151.8 151.7 153.3 152.9 153.3 154.1 43.6 43.9 44.2 44.2 44 .6 44.9 45.1 202.5 201.0 201.0 200.8 198.4 153.1 198.4 198.6 198.9 197.9 153.2 153.4 153.6 152.5 1969--January February March April May June W e e k ending: 1969--August 41.6 42.1 41.6 42 . 3 43.0 43.4 43.7 43.7 43.8 46.5 44.9 44.5 40.6 40.7 41.1 41.4 41.6 42.0 42.2 42.6 42.7 42.8 43.2 43.4 182.7 183.1 183.9 184.7 186.7 August p 5.4 7.1 6.7 5.2 3.7 3.9 2.7 4.8 4.3 5.0 4.7 4.2 142.1 142 .4 142.8 143.4 145.0 146.0 148.0 148.6 147.9 148.7 150.1 151.1 1968--January February March April May June July August September October November December 170.4 181.7 188.1 190.2 Gross liabilities of U.S. banks to 3/ 4/ their foreign branches 1,183 1,345 4,036 4,241 126.6 166.8 Turnover outside N.Y. City* (per cent) 33.3 37.4 40.0 41.1 34.2 36.3 38.3 40.4 159.3 Not Seasonally Adj. (In mil. of dollars) 5.1 4.2 3.5 4.6 125.1 130.5 132 . 1 141.3 1964--December 1965-December 1966--December 1967-December July D a t S e a s o n a l l y A d j u s t e d (Dollar amounts in billions) Time and 1/ U.S. Gov't. M o n e y S u p p l y 1 / 5/ savings 2J deposits deposits (all member) 1/ Currency Demand deposits (All commercial) 146.9 158.1 183.5 188.2 190.4 193.8 196.6 199.5 201.9 204.3 6,126 7,004 7,104 7,041 7,170 6,039 8,822 \j Beginning0^'June 1/ % : : a i : ' Z S L l n % ^ a g e 5/ Demand^deposits and total money supply revised beginning June 1967 due to a change in accounting procedures associated with Euro-dollar transactions. time deposit data exclude $1.1 billion of balances accumulated for the payment of personal loans. and definitions have occurred that affect somewhat the comparability of the data. * - Beginning January 1964, data for 232 metropolitan centers outside New Y o r k City. Breaks in the series are relatively P " Prelimina y . 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 NEGOTIABLE CD's STATE AND POLITICAL, FOREIGN OFFICIAL ETC. S 1966 M J 1967 S D M J 1968 S D J 1969 S D Exhibit I - Part II Period 1966--Dec. Dec. 1967--Dec. Dec. 28 28 27 27 (old) (new) 2/ (old) (new) 2J Total Consumertype time & savings Time and Savings Deposits Large ConsumerNegotiable type Savings time CD's State Political For. official etc . 89,495 89,639 102,809 102,991 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 1968--Aug. 28 108,259 77,031 48,269 28,762 22,304 8,924 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. Feb. Mar. Apr. May June June July 29 26 26 30 28 25 (old) 25 (new) 2J 30 110,030 109,211 108,408 106,949 106,188 103,967 103,959 100,602 79,473 79,944 80,492 79,834 79,811 79,619 79,604 78,784 48,342 48,335 48,667 47,737 47,691 47,550 47,550 46,953 31,131 31,609 31,825 32,097 32,120 32,069 32,054 31,831 21,031 19,968 18,792 17,622 16,973 15,270 15,271 13,538 9,526 9,299 9,124 9,493 9,404 9,078 9,084 8,280 1969—Aug. 6 13 20 27 100,374 99,681 99,264 99,030 78,603 78,392 78,357 78,189 46,915 46,820 46,781 46,710 31,688 31,572 31,576 31,479 13,292 13,149 12,846 12,675 8,479 8,140 8,061 8,166 V 2/ Negotiable certificates of deposit issued in denominations of $100,000 or more. Revised series. Exhibit J Member Bank Reserves (Based on averages of daily figures; in millions of dollars) Excess Reserves Free reserves (excess reserves minus b o r r o w i n g s ) D A T E All member Reserve City Banks New Y o r k City of City Chicago Other Country Borrowings All member All member Total reserves held seasonally adjusted All member M o n t h l y Averages: 1959--December 1960--December 1961—December 1962--December 1963--December 1964--December 1965--December 1966—December 1967--December -424 669 419 268 209 168 2 -165 107 -109 10 - 50 - 62 19 - 14 - 70 - 95 - 22 -104 4 -. 22 - 11 21 - 31 8 - 50 5 -449 80 20 - 52 -122 -103 -161 -159 - 55 237 583 471 394 334 315 238 140 187 482 756 568 572 536 411 452 392 345 906 87 149 304 327 243 454 557 238 18,512 18,839 19,640 20,343 21,017 22,068 23,262 23,521 r 25,940 1 9 6 8 — Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec . 144 38 -315 -413 -326 -341 -226 -190 -132 -167 -245 -297 - 9 57 13 59 34 22 - 25 -164 -136 - 40 - 18 -130 - 2 2 - 59 -105 - 64 - 43 - 78 2 - 19 4 9 - 70 - 80 - 73 -253 -257 -189 -224 - 97 - 94 -133 -191 -258 -167 236 166 11 9 - 38 - 96 - 27 66 156 68 40 70 381 399 356 270 420 351 299 375 383 260 324 455 237 361 671 683 746 692 525 565 515 427 569 752 r r r r r r r r r r r r 26,134 26,352 26,451 26,298 26,353 26,547 26,715 27,213 27,311 27,504 27,685 27,964 1969--Jan. Feb. Mar. Apr. May June July Aug. p -480 -596 -701 -844 - 60 - 67 - 44 -117 - 49 - 33 -101 -116 -337 -403 -456 -521 - 34 - 93 -100 - 90 217 228 217 152 697 824 918 996 r r r r 28,139 28,060 27,972 27,775 - -148 7 - 15 - 49 -538 -671 -642 -430 -327 -402 -378 -460 300 1,402 312 96 260 1,408 1,191 1,250 NOTE: -1,102 -1,096 -1,095 990 89 30 60 52 r 28,235 r 28,056 r 27,530 27,381 Total reserves revised beginning June 1967 due to a change in accounting procedures associated w i t h 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 Total Demand deposits and currency 2/ 1 320.3 332.5 343.2 356.0 373.1 393.9 399.2 424.6 459.0 495.4 530.5 573.1 601.5 650.4 Commercial banks 31 Mutual savings banks 2 3 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 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 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 Postal Savings Sys tem 5 2.1 1.9 1.6 1.3 1.1 0.9 0.8 0.6 0.5 0.5 0.4 0.3 0.1 U. S. Gov't, securities maturing within one year 6/ 6 7 8 Liquid assets to gross national product 7/ 9 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 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 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 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 52.5 52.3 52.2 52.2 52.2 52.2 52.2 52 .2 63.4 63.4 67.7 67.5 Savings U. S. Gov't, and loan savings shares 4/ bonds 5J Ratios: Demand deCommercial posits and bank deposits currency to and currency to gross nation- liquid assets al product 7/ ( 2 + 3 - 5 - 1 ) 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 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 " 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.G 190.6 § 199.1 703.7 705.6 713.1 709.7 710.7 r 710.6 r r 706.1 706.8 For footnotes see next page. * . Beginning with data for June 188.7 189.8 * 192.4 190.5 190.9 ' 194.0 190.9 192.3 186.5 187.6 187.9 187.6 187.7 187.9 191.5 194.0 196.2 ; 200.4 204.7 203.8 # 60.6 61.1 61.4 61.7 62.1 62.6 62.8 63.0 63.4 63.8 64.3 64.7 203.4 ; 202.9 ' 201.9 100.6 199.6 197.3 r 193.9 64.8 65.2 65.5 65.7 66.1 r 66 .2 r 66.3 66.4 in.z - Revised — — - — — — — —— - — . — - — — — — — - - • • — — — # 123.6 124.6 125.8 125.9 126.4 126.8 127.2 128.1 129.5 130.0 130.8 ' 131.0 131.0 132.0 133.4 ' 133.3 ' 133.6 ' 133.7 r 133.6 134.1 68.3 67.3 r 69.3 69.7 78.7 21.7 77.7 21.5 77.4 21.4 • 78.1 ' 21.4 ' 77.9 ' 21.2 76.8 20.7 55.7 55.6 55.3 55.1 54.9 5.5.1 r 54.5 54.4 e - Estimated r 1966, total liquid assets and time deposits at commercial banks exclude $1.1 billion of balances accumulated for the payment^of personal loans. ft • Reflects conversion of a savings and loan association with share capital of about $175 million to a mutual savings bank. e - Figures are for Tuesday, December 31 rather than for the last-Wednesday of December. NOTE: Total liquid assets and U.S. Gov't, securities maturing within 1 year revised beginning January 1969 to conform to new Budget concept. v p r e increased by $1.7 billion on that date. 55.8 55.5 55.5 55.5 55.6 55.8 55.8 55.9 • 55.9 56.0 • 56.5 56 . 8 Both figures Exhibit K (Continued) 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. 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 eposits 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. 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. 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. 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. 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. 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