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cl L.4.3 REPLACEMENT PAGE ^ Not for publication ) DeseGfcH September 19, 1966. BANKING AND MONETARY DEVELOPMENTS IN AUGUST 1966 Summary. Seasonally adjusted commercial bank credit rose in August by little more than half the large July increase. A substantial expansion of bank holdings of U.S. Government securities was offset in part by a sizable reduction in bank holdings of other securities. Total loan growth was small in August, due mainly to large loan repayments by businesses and finance companies. The money supply continued to decline in August, and at the same time Treasury deposits fell much more than seasonally. Time and savings deposits continued to expand at a pace somewhat faster than in earlier months of the year. Total and required reserves, seasonally adjusted, dropped sharply, and net borrowed reserves moved slightly upward. Changes in Commercial Bank Credit* Money Supply and Time Deposits (Seasonally adjusted) Annual rate (per cent) 1965 1966 August Total loans and investments Jan.- 2nd August Qtr. 1st Qtr. 1st Half Year 9.0 10.9 10.2 -10.7 -11.8 -11.1 -1.7 -9.5 -5.6 10.3 12.8 17.6 15.8 13.8 13.4 11.7 16.7 14.7 21.0 19.1 20.5 12.6 23.4 18.7 1.5 4.5 4.3 4.4 6.9 2.6 4.8 11.0 12.3 7.1 9.7 16.3 14.7 16.1 8.4 39.9 -4.7 -10.0 6.7 12.3 8.0 Total loans +1.2 12 .7 12.7 Business loans -4.6 18.7 Money supply -2.8 Time deposits at all commercial banks 13.8 Other securities 2nd Half 8.2 8.0 6.2 U.S. Gov't, securities 1st Half 8.3 * - Where necessary, changes in loans and other securities described above are adjusted for the definitional shift of about $1 billion of participation certificates from loans to other securities in early July. Changes in total credit, total loans, and total time and savings deposits described above are also adjusted for the reduction of $1.1 billion of balances accumulated for the payment of personal loans excluded on June 9 as a result of a change in Federal Reserve regulations affecting reserve requirements . -2- Bank credit. Seasonally adjusted total loans and investments at all commercial banks increased $1.6 billion during August, or at an annual rate of 6.2%, only slightly more than half the rapid July pace. Over the last three months the 8-1/2% annual rate of growth of credit has been similar to that in earlier months of the year. The August credit expansion appeared weak at both weekly and nonweekly reporting member banks, especially the former. Total loans at all commercial banks accounted for little of the credit growth, increasing only $200 million over the month, compared with the record $3.2 billion volume in the previous month. Contrary to the usual August loan pattern, weekly reporting banks made a net repayment of loans, while nonweekly reporting banks increased their loans much less than usual• The 13 per cent pace of loan growth over the first eight months of this year has been nearly as great as that in the same period of 1965, Business loans dropped $300 million in August--the first decline since May 1961. This unusual development, however, followed a near record rate of growth over the two preceding months, and seemed to reflect for the most part reduced August corporate withholding tax payments, a reaction to heavy borrowing earlier, continued monetary restraint, a further shift to the open market for financing needs. At weekly reporting banks, borrowing by most business concerns was smaller than in the comparable period of previous years. There was an unusually large liquidation of trade loans, as well as substantial net repayment of loans by public utilities, construction firms, and other manufacturing and mining concerns. Borrowing by the petroleum and chemical industry, important in other recent months, was at a much reduced pace in August, Meanwhile, borrowing by metals concerns--the prime factor in the rapid business loan expansion of June and July--though the single industry showing strength in loan growth in August, was relatively less strong than in preceding months. Loans to nonbank financial institutions declined $900 million over the month, following a sizable reduction in July. Most of the large August loan liquidation occurred at finance companies, reflecting a smaller need for funds to finance auto dealers, and more attractive rates available in the open market. This decline was more than offset by a $1.0 billion increase in loans to security dealers, in large part associated with heavy financing late in the month. Real estate loans rose at a faster pace in August than in other recent months, due probably to the fact that August was a five-week month. Over the eight months of 1966, real estate loans have grown about 25 per cent slower than during the first eight months of last year. Consumer loans rose at approximately the same moderate rate as in July. -3- Bank holdings of U.S. Government securities expanded $1.8 billion in A u g u s t — t h e first increase since M a r c h — a n d was accounted for almost entirely by heavy bank participation in tax bill financing late in the month. In absence of the financing, bank holdings of Treasury issue would probably have shown little change. Holdings of other securities declined $400 million in August as banks reduced their portfolios of municipal issues and participation certificates. The August decline marked the first substantial reduction in other securities during the current expansion. Over the first eight months, holdings of other securities have grown at slightly less than half the 15 per cent rate of increase over the year 1965. The heavy August liquidation came at weekly reporting banks, where acquisition of these securities is usually made during the month, On the other hand, nonweekly reporting banks were able to increase their holdings of other securities by about the usual amount in spite of a reduction of approximately $100 million maturing CCC certificates now included in other securities rather than loans. Money supply and time deposits. The seasonally adjusted money supply declined $500 million in August, following a decline the preceding month about two-thirds larger. The decline in private demand deposits in the previous month was paralleled by a greater than usual rise in U.S. Government deposits, however, while in August, Treasury balances at commercial banks declined more than seasonally. So far this year, the private money supply has expanded at an annual rate of 1.5 per cent, or less than half the 1965 yearly rate, A slowing in the expansion of private demand deposits has accounted for the slackened pace of growth. Total time and savings deposits at commercial banks continued in August to expand at a rate faster than in the first half of the year. The August rate was quite close to the 14,0 per cent annual rate exhibited in July, when transfers of funds during the mid-year interest crediting period contributed to the inflow. Over the eight months, however, time and savings deposits have grown at a pace about one-third slower than over the year 1965. At weekly reporting banks in August, time and savings deposits showed smaller than usual increases as shifts of funds into consumer-type time deposits were offset in substantial part by declines in passbook savings deposits and a large reduction at New York City banks of CD's held by individuals, partnerships, and corporations. Banks outside New York City were able to replace their maturing CD's, as w e l l as increase CD's outstanding by about the usual $170 million. Bank reserves. Total and required reserves, seasonally adjusted, declined sharply in August, following a rather large increase in July. Excess reserves dropped about $20 million, while member bank borrowings remained little changed. As a result, net borrowed reserves rose to an average level of about $380 million. Repurchase agreements by the System supplied about $140 million in reserves, but this was much more than offset by a large decline in Reserve Bank float. Banking Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System 1.4.3 . fXWetT A, FART 1 |LOANS AND I N V E S T M E N T S AT A l l NKS COMME Billions ol dollori 400 Ijqtt Wtd»idoy of month, foionolty odjmUd T O T A L L O A N S AND I N V E S T M E N T S 300 200 LOANS 100 U S GOVT. S E C U R I T I E S OTHER S E C U R I T I E S 1966 1965 1964 1963 1962 1961 1967 Exhibit A - Part II Loans 1/ Total 1/ Date b i 1 1 i o n s 133.9 149.4 167.4 U.S. Gov't, securities of Other securities d o 1 1 a r s) 29.2 65.2 35.0 62.1 38.7 61.1 1962—Dec. 31 2/ 1963--Dec. 31 2/ 1964--Dec. 31 (In 228.3 246.5 267.2 1965--June 30 July 28 Aug. 25 Sept.29 Oct. 27 Nov. 24 Dec. 31 281.7 283.2 286.1 286.2 289.9 291.5 294.4 181.4 182.9 185.2 186.2 188.6 189.8 192.0 58.2 57.9 57.7 56.5 57.4 57 .5 57.7 42.1 42.4 43.1 43.4 43.9 44.2 44.8 1966--Jan. Feb. Mar. Apr. May June 297.4 297.5 300.3 302.7 304.3 305.4 3/ 194.5 196.2 198.6 200.7 202.0 203.7 3/ 58.0 55.9 56.0 55.8 55.0 54.5 44.9 45.4 45.7 46.2 47.2 47.1 308.2 309.8 205.9 4/ 206.1 54.1 55.9 48.2 4/ 47.8 26 23 30 27 p 25 p 30 p 2/ July 27 p Aug. 31 p I A U J U D L C U y V V7 CAWXUUW " & Estimated as of December 31 and June 30. Beginning June 9, loan data exclude the $1.1 billion of balances accumulated for the payment of personal loans. Beginning July 13, total loans exclude, and other securities include, about $1 billion of participation certificates. L O A N S AT A i l COMMERCIAL BANKS l o s t W e d n e s d a y of month, seasonally a d j u s t e d BUSINESS REAL ESTATE CONSUMER • 1961 1960 1964 1963 1962 1965 1966 Exhibit B - Part II Business Date 1960--Dec. 1961--Dec. 1962--Dec. 1963—Dec. 1964--Dec. 31 31 31 1/ 31 V 31 (I n 42.1 43.9 47.6 52.0 58.2 Real Estate tm i l l i o n s 28.6 30.2 34.2 39.1 43.5 Consumer Security of d o ]L i a r s ) 20.6 4.4 21.1 5.2 23.7 6.2 27.2 6.7 31.1 7.1 1965--June 30 July 28 Aug. 25 Sept.29 Oct. 27 Nov. 24 Dec. 31 65.0 65.6 66.2 66.8 67.2 67.8 69.1 46.2 46.6 47.2 47.8 48.3 48.7 49.2 33.4 33.9 34.3 34.7 35.1 35.4 35.8 8.7 7.2 7.6 6.3 6.9 7.5 7.2 1966--Jan. Feb. Mar. Apr. May June 70.6 71.3 72.4 73.0 74.2 76.2 49.7 50.2 50.7 51.0 51.4 51.6 36.1 36.3 36.9 37.0 37.3 37.5 8.0 7.0 7.5 8.1 7.9 8.0 78.0 77.7 51.9 52.4 37.8 38.1 7.4 8.4 26 23 30 27 p 25 p 30 p 17 July 27 p Aug. 31 p 1/ Estimated as of December 31 and June 30. p - Preliminary. These data are not for publication # # • • • # • • • Exhibit C Changes in Loans and Investments at All Commercial Banks, Seasonally Adjusted (In billions of dollars) 1966 1965 Item July August Sept. Oct. Nov. Dec. Jan. Feb, April Mar. July p June p May p ! Aug. p Loans and Investments 2/ ±U5 +2.9 +0.1 ±hl +1.6 +2.9 ± M +0.1 +2.8 +2.4 +L-± +2.2 4/ +2.8 +1.6 U. S. Gov't, securities -0.3 -0.2 -1.2 +0.9 +0.1 + 0 . 2 +0.3 -2.1 +0.1 -0.2 -0.8 -0.5 -0.4 +1.8 Other securities +0.3 +0.7 +0.3 + 0 . 5 + 0 . 3 +0.6 + 0 . 1 + 0 . 5 +0.3 ; +0.5 +1.0 -0.1 Loans 2/ +1.5 +2.3 + 1 . 0 + 2 . 4 +1.2 +2,2 + 2 . 5 + 1 . 7 +2.4 I +2.1 +1.3 + 2 . 9 Business +0.6 +0.6 +0.6 +0.4 + 0 . 6 +0.6 +1.2 Real estate +0.4 +0.6 +0.6 +0.5 + 0 . 4 +0.3 Consumer +0.5 +0.4 +0.4 +0.4 + 0 . 3 Security -1.5 +0.4 -1.3 +0.6 + 0 . 6 -0.3 Nonbank financial -0.2 +0,2 +0.3 +0.1 +0.1 + 0 . 1 Agriculture +0.3 -0.1 v 1 / 1/ V i/ +0.1 1/ -0.2 - 0 . 1 + 0 . 4 -0.3 i/ +0.3 -0.1 +0.1 +1.8 +1.9 +1.2 +1.3 +2.7 +2.1 +1.4 +3.4 +1.4 +1.9 All other Total loans excluding security 3/ +1.6 , +1.3 : + o . i -0.4 5/ +3.2 5/ +0.2 +2.0 +1.8 -0.3 +0.4 +0.2 +0.3 +0.5 +0.1 +0.3 +0.2 +0.3 +0.3 4 / ! j +0.5 1 + 0 . 4 j + 1 . 5 + 0 . 7 + 1 . 1 +0.5 + 0 . 5 +0.5 + 0 .3 + 0 . 2 + 0 . 8 - 1 . 0 +0.5 +0.6 -0.2 +0.1 -0.6 +1.0 + 0 . 1 1/ +0.7 +0.4 -0.4 +0.9 -0.7 -0.9 y +0.2 +0.1 +0.3 1/ + 0 . 6 ! | 5/ +0.5 +0.3 5/i -0.4 +3.9 4/* +2.1 5/' -0.3 +3.0 4/* +2.8 5/ -0.1 i +0.1 i +0.7 4/1 i j ! i Total loans excluding security and nonbank financial 3/ 1/ 2/ 3/ 4/ "* 5/ +1.8 +1.6 +1.6 +1.1 +1.2 +2.6 +2.0 + 1 . 4 +2.7 +1.0 4-2.3 | i 1 ! +0.6 to revision. Less than $50 million. Adjusted to exclude interbank loans. Derived by addition'of items and not by subtraction from total loans. Allowance has been made In the monthly changes in total bank credit, total loans and "all other" 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. Allowance has been made in the monthly changes in total loans, other securities, agricultural loans and all other loans for approximately $1 billion of participation certificates shifted from loans to other securities on July 13, 1966. 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 July to !ast Wedneisdav of August Item 1966 1965 1964 1963 1962 1961 1Q6f) All commercial banks Total loans U. S. Gov't, securities Other securities Total -0.2 +1.0 -0.2 4-0.6 +1.9 -0.8 +0.8 +2.0 +0.8 +0.5 +0.6 +1.9 +0.3 -1.7 +0.8 -0.7 +1.2 . -0.3 +0.4 +1.2 1/ -0.5 +0.2 -0.3 +0.6 -0.1 Weekly reporting banks 4/ Total loans U. S. Gov't, securities Other securities Total -0.3 +0.9 -0.4 +0.2 +1.3 -0.8 +0.5 +1.1 +0.4 +0.3 +0.4 +1.0 +0.1 -1.4 +0.4 -0.9 +0.9 -0.7 +0.1 +0.4 -0.3 -0.6 +0.2 -0.7 +0.1 +0.1 1/ +0.2 +0.1 +0.1 +0.2 +0.6 1/ +0.3 +0.9 +0.4 +0.2 +0.2 +0.9 +0.2 -0.3 +0.4 +0.2 +0.3 +0.4 +0.3 +0.8 +0.3 +0.1 v +0.4 +0.5 -0.2 Other banks 4/ Total loans U. S. Gov't, securities Other securities Total +0.4 1/ +0.4 1/ +P.2 End of December to last Wednesday cif Aueust Item 1966 3/ 1965 1964 2/ 1963 2/ 1962 1961 1960 • All commercial banks Total loans U. S. Gov't, securities Other securities , Total +9.8 -6.0 +2.2 +6.0 +12.2 -7.5 +4.6 +9.3 +6.1 -4.7 +2.1 +3.5 +4.6 -5.6 +4.4 +3.5 +3.4 -2 .7 +4.0 +4.6 -0.4 +3.2 +1.6 +4.5 +2.5 -2.3 ± 5 -0.5 Weekly reporting banks 4/ Total loans U. S. Gov't, securities Other securities Total +4.6 -3.8 +0.6 +1.5 +6.8 -5 .4 +2.9 +4.4 +1.9 -3.1 +1.1 -0.1 +1.0 -4.6 +3.1 -0.4 +0.5 -3.2 +2.9 +0.2 -2.3 +2 .9 +1.1 +1.7 -0.3 -0.3 -0.3 -0.9 Other banks 4/ Total loans U. S. Gov't, securities Other securities Total +5.2 -2.2 +1.6 +4.5 +5.4 -2.1 +1.7 +4.9 +4.2 -1.6 +1.0 +3.6 +3.6 -1.0 +1.3 +3.9 +2.9 +0.5 +1.1 44.4 +1.9 +0.3 +0.5 +2.8 +2 .8 -2.0 NOTE: 1/ 2/ 3/ 4/ +0.4 Data exclude all interbank loans; call report data for weekly reporting banks used when available. Less than $50 million. Based on estimated data for December 31, 1963 and 1962 for all commercial banks and for December 31, 1962 for weekly reporting banks. Where necessary, 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 on July 13, 1966 ($700 million at weekly reporting and $300 million at nonweekly reporting); and in total credit and 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 ($400 million at weekly reporting banks and $700 million at other banks). Based on revised coverage beginning July 1966. Exhibit E Changes in Commercial and Industrial Loans at Weekly Reporting Banks (In millions of dollars) T.?te December to Late July to end of August 1/ Business of borrower 1966 + 62 Food processors Commodity dealers Trade concerns Retail trade Wholesale trade Metals Primary metals Machinery Transportation equipment Other fabricated metals Textiles, apparel, etc. Petroleum Chemicals Other durable manufacturing Other nondurable manufacturing Mining Public utilities Construction All other types of business Bankers acceptances Other, mainly services + 54 + 30 +~T7" + 3 +139 + 22 + 16 + 78 + 23 +166 + 65 - 29 + 79 1/ 2/ +115 + 15 + 39 +"T7 + 27 + 25 - 25 + 77 +135 H i - 22 - 63 - 21 1962 + + + + + + + + + 80 62 9 89 14 31 46 33 78 76 73 - 54 - 14 +429 + 59 +705 +593 +488 +257 -419 -367 -595 -462 tiil +274 +1:241 +142 +516 +236 +347 M i + 59 +223 +269 +271 +344 +291 +327 +580 + 13 6 1964 +626 +669 + 36 + 1965 +101 - 60 24 40 22 63 49 1966 P 52 42 56 ~Z2T 32 93 25 2 +112 + + - •399 1963 1964 + 7 - 26 + 19 + 25 - 19 + 94 + 23 - 40 n .a. n .a. + 82 Classified Unclassified Total change 1965 nf August + 16 + 80 - 23 +149 +318 -150 +166 2/ 1963 -598 -107 - 80 "r3T - 29 -131 - 43 +125 -251 + 38 +420 - 14 + 15 -545 -192 +132 TT7 + 65 -842 + 86 +818 +157 +131 +257 -251 +407 +514 n.a. n.a. +4,570 +3,122 +4,587 +732 +735 +498 -150 +234 +188 +288 +7,692 +5,319 +1,233 + 38 +522 +611 +278 +497 -321 +135 +235 -423 +166 +143 n.a. n.a. Five most comparable weeks used throughout. " Changes are compiled from December 22, 1965; December 23, 1964; December 25, 1963; December 26, 1962; and December 27, 1961. Dates other than last Wednesdays of 1963 - 1965 were selected in order to avoid turnof-the-year dating differences. These data cannot be linked with all commercial bank data which are always for December 31. 1962 Exhibit F Loans and Investments at All Commercial Banks (In billions of dollars) Nonbank financial institutions All other Loans and investments U. S. Gov't. Other securities Total loans Business Real estate Security Farm Consumer (est.) 169.3 184.4 184.2 184.2 189.5 198.5 214.4 233.6 58.2 66.4 60.9 60.9 58.9 61.0 66.6 66.4 17.9 20.6 20.6 20.6 20.5 20.9 23.9 29.3 93.2 97.5 102.8 102.8 110.0 116.7 123.9 137.9 40.5 40.4 42.5 37.8 40.2 43.1 45.2 49.1 23.1 25.3 26.9 26.9 28.1 28.7 30.3 34.3 4.2 4.7 4.1 4.1 4.9 5.1 6.2 7.3 4.1 5.0 5.0 5.0 5.0 5.7 6.2 7.1 15.8 15.9 17.5 17.5 18.8 20.6 21.4 23.7 1963—Dec. 31 (est.) 252.4 63.4 35.1 153.9 53.7 39.2 7.9 7.4 27.2 10.2 11.3 1964—Oct. 28 Nov. 25 Dec. 31 262.4 266.3 273.9 61.4 62.7 63.0 38.0 38.1 38.8 163.0 165.5 172.1 56.3 57.4 60.2 43.0 43.4 43.7 7.1 7.4 8.4 7.5 7.6 7.5 30.5 30.6 31.0 9.5 9.6 10.9 12.5 12.9 13.9 1965— Jan. Feb. Mar. Apr. May June 27 24 31 28 26 30 269.1 270.7 273.9 275.9 277.1 283.9 61.5 60.5 59.0 58.3 57.2 56.9 39.1 39.7 40.3 41.4 41.1 42.2 168.5 170.5 174.5 176.2 178.8 184.9 58.9 60.3 62.2 62.5 63.4 65.5 43.9 44.1 44.5 45.0 45.5 46.2 7.4 7.1 7.8 7.9 7.9 9.0 7.7 7.8 7.9 8.1 8.1 8.1 31.1 31.3 31.7 32.4 33.0 33.7 9.8 9.9 10.5 10.3 10.4 11.5 13.4 13.5 13.5 13.7 14.0 14.5 July 28 Aug. 25 Sept.29 Oct. 27 Nov. 24 Dec. 31 281.2 283.2 286 .8 290.2 292.3 301.8 56.3 55.5 55.9 58.5 58.8 59.5 42.6 43.4 43.9 44.1 43.8 44.9 182.4 184.3 187.0 187.7 189.8 197.4 64.8 65.5 66.8 67.1 68.3 71.4 46.7 47.4 48.0 48.5 49.0 49.3 7.0 7.0 6.7 6.9 7.2 8.5 8.2 7.8 7.9 8. 1 8.2 8.2 34.2 34.6 34.9 35.2 35.4 35.8 11.0 11.3 11.8 11.2 11.3 13.3 14.2 14.3 14.4 14.2 14.1 14.9 296.8 296.0 298.5 301.5 301.9 307.8 2/ 306.1 306.7 59.6 57.3 55.4 55.4 53.5 52.9 52.5 53.5 44.4 45.1 45 .4 46.4 47.0 47.3 48.3 3/ 48.1 192.7 193.6 197.6 199.7 201.4 207.6 2/ 205.3 3/ 205.1 69.7 70.7 72.6 72.8 74.0 76.9 77.1 76.8 49.7 49.9 50.2 50.7 51.1 51.6 52.1 52.6 7.6 7.0 7.3 , 7.9 7.7 8.3 7.2 7.7 8.4 8.5 8.7 8.9 9.0 9.0 8.6 3/ 8.6 35.8 35.9 36.4 36.8 37.3 37.8 38.1 38.5 11.6 11.7 12.5 12.7 12.1 13.8 12.8 12.0 14.0 13.8 14.0 14.0 14.3 14.1 2/ 13.3 3y 12.9 Date 1957— Dec. 1958—Dec. 1959—June June Dec. 1960—Dec. 1961—Dec. 1962—Dec. 1966—Jan. Feb. Mar. Apr. May June July Aug. 31 31 24 24 31 31 30 31 26 23 30 27 25 30 27 31 (old) (new) 1/ p p p p p —— — -- 5.9 7.1 7.1 7.3 8.5 7.2 8.2 8.8 7.6 8.1 8.7 9.8 10.7 p - Preliminary. ? 1/ Structure changes in 1959, on balance through August, added almost $1 billion total credit: $600 million in loans; $300 million in U. S. Government securities; and $100 million in other securities. Real estate loans increased about $300 million; business loans $100 million; consumer loans $100 million;and other loans $100 million. 27 Beginning June 9, $1.1 billion of balances accumulated for the payment of personal loans were deducted from time deposits and "all Other" loans. 3/ Beginning July 13, about $1 billion of participation certificates previously included in agricultural and "all other" loans were reclassified as "other securities." 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. Individual loan 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 0 A N S Date 1951—Dec. 1952—Dec. 1953—Dec. 1954—Dec. 1955—Dec. 1956—Dec. 1957—Dec. 1958—Dec. 1959—Dec. 1960—Dec. 1961—Dec. 1,962—Dec. 1963—Dec. 1964—Dec. All :ommercial Total banks Member banks Reserve city banks New York City of Other Cttv Chicago 46.3 36.2 39.4 50.6 38.9 41.1 50.6 39.1 42 .2 46.8 38.3 41.9 46.3 56.7 48.5 61.7 52.7 52.7 61.9 55.2 53.3 57.7 49.4 51.3 67.3 58.2 58.2 60.8 65.9 59.0 65.0 58.0 57.7 67.9 61.4 60.1 67.4 62.1 63.3 69.3 64.4 65.0 31 31 31 31 31 31 31 31 31 31 31 28 25 31 37.2 39.3 40.5 40.3 45.8 48.8 49.7 48.4 54.0 55.1 54.5 56.5 58.6 60.5 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 1965—June 30 July 28 Aug. 25 Sept.29 Oct. 27 Nov. 24 Dec. 31 63.6 63.7 64.1 63.9 63.8 64.2 63.7 64.9 65.0 65.5 65.3 65.2 65.8 65.4 74.3 72.2 74.8 73.4 73.8 77.6 75.9 67.0 67.1 67.7 69.3 69.6 68.2 70.2 1966--Jan. Feb. Mar. p- Apr. p- May P- June p- July p- Aug. 63.8 64.6 65.2 64.9 65.9 66.5 66.5 66.5 65.5 66.5 67.0 66.6 67.6 68.4 68.3 68.3 75.9 77.5 77.7 75.7 79.3 81.3 82.6 81.9 71.3 73.4 73.9 68.4 70.4 74.9 73.3 74.0 26 23 30 27 25 30 27— 31 1/ Country All commercial banks 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 9.8 11.7 16.9 10.0 5.1 7.5 8.4 8.3 7.4 8.7 11.2 9.5 2/ 7.5 8.0 67.8 68.9 69.0 69.1 69.1 69.3 68.7 58.3 58.6 58.7 58.4 58.2 58.3 57.9 6.0 5.7 6.1 6.4 7.1 7.3 7.3 69.2 70.6 70.8 70.7 70.9 71.4 71.0 71.3 57.9 58.3 59.0 59.2 60.1 60.0 60.1 60.2 7.5 6.3 5.7 5.6 5.4 5.4 4.9. n.a. 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.) 2/ Estimated for December 31. 2/ Beginning in July, loans at all commercial banks exclude about $1 billion of participation certificates now reported in other securities. If the $1 billion were included in loans in July, the ratio for all commercial banks would be 66.8 NOTE: Comparability of figures affected by changes in Federal Reserve membership, mergers, and by changes in the reserve classification of cities or individual.banks, p - Preliminary. 1.4.3. .-EX HI B 11 H. Pa. I I DEPOSITS A N D CURRENCY AND TURNOVER OF DEMAND DEPOSITS) ma n I h I y 601 20 TURNOVER 30 ($7$. 6 OVT.DE POSITS * Nol o d j u i l o d I of t e u t o n o I ) . U.I.LLU.l 1 1.1 L i-U l.Li-l J I9 60 * ' A l l t o r n III e m u I b u n k s i Exhibit H - Part II A d i u s t e d Da t a Turnover Time and M o n e y S u p p i y outside savings N.Y. City* deposits Demand Currency Total (per cent) deposits S e a s o n a 1 1 y Period 33.9 33.4* 37.5 U.S. Gov't, deposits 5.1 5.5 4.5 1963—December 1964—December 1965--December 153.1 159.7 167 .4 120 .6 125.4 131.2 32.5 34.2 36.3 112.2 126 .6 147.0 1965—August 162.7 127.3 35.4 140.1 1966—February March April May June July August p 168.0 169.2 171.1 169.5 171.1 169.6 169.1 131.2 132.3 134.0 132.2 133.8 131,9 148.8 149.6 151.6 152.9 153.3 1/ 154.9 V 156.7 37.0 38.3 37.7 37.8 39.0 n.a. 5.1 4.6 3.0 7.2 6.2 131.4 36.8 36.9 37.1 37.3 37.3 37.6 37.7 Week ending: August 3 10 17 24 31 169.3 168.2 169.3 169.5 169.6 131.6 130.6 131.7 131.8 131.8 37.7 37.6 37.7 37.7 37.8 155.8 156.2 156.9 156.9 157.0 n.a. n.a. n.a. n.a. n.a. 5.9 5.9 4.8 4.3 5.2 1/ 7.4 8.1 5.2 accumulated for the payment of personal loans. p - Preliminary. * Beginning January 1964, data are for 224 metropolitan centers outside New York City. Figure for December 1964 on old basis is 35.3. http://fraser.stlouisfed.org/ NOTE: Dollar amounts in billions. Federal Reserve Bank of St. Louis 14 3 EXHIBIT 1, f o r l _ ^ TIME A N D S A V I N G S D E P O S I T S AT MEMBER B A N K S IN L E A D I N G C I T I E S Billioni.ol d o l l o r i Wednesdoy figures T O T A L T I M E AND S A V I N G S D E P O S I T S — L SAVINGS DEPOSITS T I M E D E P O S I T S OF I N D I V I D U A L S , P A R T N E R S H I P S , AND C O R P O R A T I O N S OTHER TIME D E P O S I T S 1966 1965 1964 » ( H A N O I IN S H I I S Exhibit I - Part II T i m e Period n d S a v i n g s Savings Total (In m i l l i o n D e p o s i t s Individuals, partnerships, and corporations > f Other time deposits 1/ d o l l a r s ) 27 26 31 30 29 41,472 50,011 59,227 66,881 78,260 30,082 34,712 38,083 40,698 45,362 5,969 9,080 13,310 16,407 21,258 5,421 6,219 7,834 9,776 11,640 1965—Aug. 25 75,703 43,779 20,923 11,001 1966—Apr. 27 May 25 2/ June 29(old)— 81,813 82,694 82,868 43,377 43,133 43,104 26,040 26,965 27,515 12,396 12,596 12,249 June 29(new) 90,185 48,413 28,687 13,085 July 27 90,944 47,453 30,550 12,941 1961—Dec. 1962—Dec. 1963—Dec. .1964--Dec. 1965--Dec. 13,007 30,625 47,386 91,018 13,029 30,771 47,364 91,164 13,156 17 30,943 47,341 91,440 13,159 24 31,047 47,295 91,501 47.228 11.171 31 91,258 Includes States t and political subdivisions, U.S. Government, foreign governments and official institutions, and interbank. Beginning June 15, data exclude the $400 million of balances accumulated for the payment of personal loans. Aug. 1/ ~ 2/ 3 10 Exhibit J Member Bank Reserves (Based on averages of daily figures; in millions of dollars) Free reserves (excess reserves minus borrowing s) Date All member Reserve City Banks New York City of City Chicago Other Country Excess reserves All member Borrowings All member Total reserves held seasonally adjusted All member 1/ Monthly Averages: 1958—December 1959--December I960--December 1961--December 1962—December .1963—December 1964--December - 41 -424 669 419 268 209 168 - 80 -109 10 - 50 - 62 19 - 14 - 32 -104 4 - 22 - 11 - 21 - 31 -197 -449 80 20 - 52 -122 -103 268 237 583 471 394 334 315 516 482 756 568 572 536 411 557 906 87 149 304 327 243 18,083 18,121 18,411 19,202 19,855 20,558 21,416 1965—July Aug. Sept. Oct. Nov. Dec. -174 -134 -144 -146 - 83 - 2 -134 - 32 - 46 - 28 - 77 - 70 - 25 36 43 80 30 8 -214 -230 -243 -207 -178 -161 197 163 190 167 202 238 350 430 384 344 369 452 524 564 528 490 452 454 22,245 22,231 22,205 22,273 22,276 22,546 1966--Jan. Feb. Mar. Apr. May June July Aug.p - 44 -107 -246 -268 -352 -352 -362 -398 - 74 - 75 - 37 - 29 - 40 -143 - 6 - 26 - 49 26 62 33 3 12 54 24 -141 -148 -218 -238 -225 -223 -312 -279 219 143 71 32 -84 27 9 -70 358 371 305 358 370 322 404 330 402 478 551 627 722 674 766 728 22,661 22,742 22,787 23,043 23,044 23,030 23,201 22,937 NOTE: Beginning July 26, 1962, figures for both New York and the City of Chicago include banks formerly classified as central reserve city and three banks whose classification as reserve city is continued. 1/ Preliminary revision reflecting July change in reserve requirements; a subsequent revision will be made in the series to reflect September reserve requirement changes• p - Preliminary. r i 4 r Exhibit K Liquid Assets Held by the Public - Seasonally Adjusted Series 1/ (Amounts in billions of dollars; ratios expressed as percentages) Time de posits End of year or month Total Demand deposits and currency 2/ Commercial banks J/ Mutual savings banks Postal Savings System Savings U. S. Gov't. and loan savings bonds shares 4/ IL S. Gov't, securities maturing within one year 6/ 4 5 6 7 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 320.2 332.5 343.2 356.0 373.1 393.9 399.2 424.6 459.0 495 .4 530.5 130.2 133.3 134.6 133.5 138.8 139.7 138.4 142.6 144.8 149.6 156.7 48.2 49.7 52.0 57.5 65.4 67.4 73.1 82.5 98.1 112.9 127.1 26.3 28.1 30.0 31.6 33.9 34.9 36.2 38.3 41.4 44.5 49.0 2.1 1.9 1.6 1.3 1.1 0.9 0.8 0.6 0.5 0.5 0.4 27.2 32.0 37.0 41.7 47.7 54.3 61.8 70.5 79.8 90.9 101.4 55.& 55,9 54.3 51,6 50.3 47.9 47,0 47,4 47,6 49.0 49.9 30. 6 31.6 33.2 38.8 35.6 48.8 41,9 42.6 46.8 48.1 46.1 1965 Apr. May June 543.4 543.0 550.2 156.3 155.4 159.7 134.1 134.9 136.3 50.1 50.4 50.8 0.4 0.4 0.4 103.9 104.5 105.1 49.9 49.9 50.0 48.6 47.6 48.0 July Aug. Sept. Oct. Nov. Dec. 550.9 555.7 560.7 565.1 568.3 572.8 157.7 157.8 160.6 161.1 160.4 164.0 138.3 139.8 141.6 144.0 146.5 147.1 51.1 51.3 51.6 52.0 52.3 52.5 0.4 0.3 0.3 0.3 0.3 0.3 105.5 106.5 107.8 108.4 109.3 109.7 50.1 50.1 50.1 50.1 50 a 50.5 47.9 49.8 48.7 49.1 49.4 48.6 Jan. Feb. Mar. Apr. p May p June p 578.5 577.5 585.5 ~ 587.1 585.8 r 588.6 * 164.8 162.8 167.1 166.6 164.1 r 166.4 149.2 149.4 151.1 152.3 153.2 153.4 * 52.8 53.0 53.1 53.1 53.3 53.4 0.3 0.3 0.3 0.3 0.3 0.2 109.8 110.6 111.4 111.0 111.2 £ 111.4 50.5 50.3 50.3 50.4 50.4 50.4 51.2 51.0 52.1 53.3 53.3 53.4 July p Aug. p r r 164.4 166.7 155.6 * 156.1 53.7 54.0 0.2 0.2 r 110.7 e 111.4 50.6 50.6 52.7 53.5 1 2 3 8 Liquid assets to gross national product 7/ 9 85.9 81.3 79.6 80 . 3 80.2 80.5 79.2 78.5 80.4 81.0 81.6 81.0 Ratios: Commercial Demand deposits and bank deposits currency to and currency to gross nation- liquid assets al product 7/ (2 + 3 t 1) 10 11 35.0 32.6 31.2 30.3 29.9 28.7 27.6 26.4 25.4 24.6 24.1 55.7 55.0 54.4 53.6 54.8 52.6 53.0 53.0 52.9 53.0 53.5 23.4 53.5 53.5 53.8 80.8 23.2 80.5 22.9 53.7 53.6 53.9 54.0 54.0 54.3 1966 587.9 * 592.4 80.2 22.8 80.1 * 22.7 54.3 54.1 54.3 54.3 54.2 54.3* 54.4 54.5 For footnotes see next page. p - Preliminary. e - Estimated. . r?-Revised. * - T o t a l liquid assets and time deposits at commercial banks are shown exclusive of the $1.1 billion of balances accumulated for the payment of personal loans, which were deducted from total deposits on June 9. 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 wheniever possible. All series adjusted for seasonal variation by the X*9 variant of Method II developed by the Bureau of the Census. 2. Data are for demand deposits adjusted and currency outside banks and are as of the last Wednesday of the month. In concept the figures agree with the daily average money supply described in detail in the Federal Reserve Bulletin for August 1962, p. 941, except that demand deposits held by mutual savings banks and by savings and loan associations have been deducted to avoid double counting. Demand deposits of commercial banks in Alaska and Hawaii are included beginning January 1959 and August 1959, respectively, except that one national bank in Alaska and one national bank in Hawaii were included in April 1954 and April 1959, respectively. Demand deposits due to banks in United States possessions are included throughout. 3. Total time deposits at commercial banks except interbank, U.S. Treasurer's open account, and postal savings redeposited in commercial banks. Data are as of the last Wednesday of month except June 30 arid 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 12months prior to first call date, and prior to 1956, nonmarketable Treasury savings notes jjrith 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. Data for total Gross national product figures are available quarterly and annually only. 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)< http://fraser.stlouisfed.org/ Federal Reserve Bank of• St. Louis v e • • • e e e e <
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