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^5f •2A BANKING AND MONETAE! DEVELOPMENTS IN AUGUST 1959 Summary. Commercial bank loans continued to expand at a near-record rate in August, despite the steel strike. In meeting loan demands banks reduced their Government security holdings heavily. Although total credit at commercial banks rose slightly, the money supply declined sharply—almost offsetting the July increase. In part this reflected a significant build-up in Government deposits in August. Short term money rates rose sharply in August and on September 1 the prime loan rate was advanced to 5 per cent. On September 11, seven Reserve Banks raised discount rates to % per cent. Bank credit. Total loans and investments at commercial banks increased slightly, $200 million, in August (apart from changes due to the addition of banks in Hawaii) as shown in Table 1. Usually total credit shows a somewhat larger increase in August. Total loans increased $1.1 billion, more than in August of any other year except 1950. Holdings of U. S. Government securities declined $900 million as heavy sales more than offset the initial acquisition by commercial banks of almost all of the $1 billion of the Treasury tax anticipation bill issue of August 19. Also commercial banks probably took most of the $600 million of new bills offered through increases in the weekly bill issues of August 13, 20, and 27. Total credit at weekly reporting banks declined in August whereas it usually increases somewhat. Seductions in holdings of U. S. Government and other securities more than offset near-record loan expansion. At country member banks, total credit apparently increased about the usual amount. The loan increase, as at city banks, was larger than in any other recent year except 1950, but holdings of U. S. Government securities did not increase as much as usual. Business loans at all commercial banks (which will not be revised to exclude loans to sales finance companies and other financial businesses until call report data become available) increased $600 million in August, as shown in Table 1. This increase was less than in August 1955, but somewhat more than in most other recent years. At city banks, increases in loans to seasonal borrowers—food processors, commodity dealers, and trade concerns—accounted for about 60 per cent of the growth in business loans. This increase was about the same as in the past three Hot for publication years, but considerably larger than in 1955* Loans to textile manufacturers continued to show record increases in August and loans to most other business categories increased slightly further. Despite the steel strike, loans to metals processors declined only nominally. In both 1952 and 1956, when steel strikes also occurred, loans outstanding to metals companies were reduced substantially in July and August, whereas this year such loans have shown little net change since midyear. Real estate loans at all commercial banks are estimated to have increased $200 million further in August (after adjustment for bank structure changes); the increase of $400 million since midyear was somewhat less than in 1955 and 1950. Data for city banks indicate that growth in these loans appears to be tapering off compared with the rapid expansion of the first half of 1959« Consumer loans continued to increase sharply, $200 million in August, The $400 million growth since June was exceeded only in 1950. Deposits and currency. Seasonally adjusted demand deposit and currency holdings of businesses and individuals declined $1.3 billion in August ($1.5 billion after adjustment for addition of banks in Hawaii) as shown in Table 3. This followed an increase of $1.7 billion in July (revised upward from $1.4 billion as reported last month). At the end of August the money supply was about 3 per cent above the level a year ago. Seasonally adjusted demand deposit data based on semimonthly averages of daily figures at member banks indicate a decline of $900 million between the second half of July and the second half of August. This followed an increase of $900 million on the same basis in July. U.S. Government deposits increased $900 million in August, somewhat more than usual, following a $400 million rise in July when these deposits usually decline. Commercial bank credit expansion since midyear has been reflected largely in this build-up of U. S. Government deposits, rather than in private deposits. Time deposits at commercial banks increased only slightly in August, $100 million, (after adjustment for structure changes). In July they had declined slightly. In the comparable period of 1958, these deposits had increased $1.1 billion, while In most other recent years, they had shown some small growth over these months. Not for publication Deposit turnover. The seasonally adjusted annual rate of turnover of demand deposits in 337 centers outside New York and other financial centers was 24.5 in August, somewhat below the recent peak of 25.4 in July, but about the same as the second quarter average. In August, turnover was about 8 per cent above the level of last August. Turnover also declined somewhat in New York City in August, averaging 55.6, also about 8 per cent above the level a year ago. Bank reserves. Net borrowed reserves of member banks averaged $525 million in August compared with $560 million in July and $515 million in June, as shown in Table 4. In April and May, net borrowed reserves had averaged about $300 million. Since May most of the tightening in reserve positions has occurred at central reserve city banks in New York, where net borrowed reserves increased from $50 million to $225 million. Net borrowed reserves were also somewhat higher at reserve city banks. At country banks, free reserves increased slightly over the three months. Borrowings rose to an average level of $1,010 million in August, the first time they have exceeded $1 billion on a monthly average basis since August 1957. Excess reserves also rose in August, to an average level of $485 million, the highest since early in 1959* Over August, as shown in Table 5# reserves were absorbed by further gold outflow, a build-up in Treasury deposits at the Reserve Banks, and a reduction in Beserve Bank float. Beserves were supplied by a reduction in currency in circulation of about the usual seasonal volume. In the two previous months, currency had increased somewhat on a seasonally adjusted basis but growth had been less rapid than in the spring and early summer. Federal Be serve purchases of $165 million of U. S. Government securities also supplied reserves. In addition, required reserves declined $145 million. An increase in required reserves in late August associated with bank credit expansion resulting from bank purchases of the August 19 Treasury tax anticipation bill issue was more than offset by reductions earlier in the month. Interest rates. Effective September 1, the prime rate— the rate charged on business loans to borrowers with the highest credit rating—was increased to 5 per cent from 4-1/2 per cent at banks in New York City. Subsequently, banks throughout the country also increased the prime rate. The rate is now higher than at any other time since the early Thirties. Not for publication Effective September 11, the discount rate at seven Reserve Banks (New York, Cleveland, Richmond, Chicago, St. Louis, Dallas, and San Francisco) was raised to 4 per cent from 3-1/2 per cent. In ten districts, including New York, it had last been at 4 per cent in the early part of 1930; in the Richmond and Dallas Districts it had been at 4 per cent in late 1931 and early 1932. By September 1%, the increase had become effective at four additional Banks. Interest rates on private open market paper increased further in August and early September. Rates on 4-6 month commercial paper rose to 4-1/2 per cent, also higher than at any other time in almost thirty years. In late 1957, the peak rate had been 4-1/8 per cent. Rates on directly-placed 3-6 month finance company paper moved into the 4-1/4—4-1/2 per cent range in early September compared with a previous peak of 3-7/8 per cent in 1957* (Data are available back to 1935)• The rate on bankers1 acceptances rose to 4 per cent in early September, slightly above the recent high in 1957* The effective rate on Federal funds remained at 3-1/2 per cent on every day during August and early September. It rose to 4 per cent following the increase in the discount rate. Not for publication -5 Table 1 LJt.3 Estimated Changes in Loans and Investments at All Commercial Banks (In billions of dollars) Item Total loans (excluding interbank) Business Real estate Security Agricultural Consumer All other Uo S. Government securities Last Wednesday of July to last Wednesday of August 19592/3/ 1958 1.3 + 0.6 0.3 V + + V 4 0.2 * + 0.2 0.8 - y Other securities Total loans and investments (less interbank) Item Total loans (excluding interbank Business Heal estate Security Agricultural Consumer All other 0.5 + 0.1 - 1957 0.5 + 0*k + + 0,2 0.9 1/ 1/ + 0.2 2.0 + + + + . - 1955 1951 + + — 0.5 + 0.8 - 0.7 0.6 0.2 0.3 0.2 1/ 0.1 + y + ' 0.3 0ol 0.1 0.1 0.1 1956 + 0.8 4 0.3 0.3 0.3 0.2 0.1 1/ + T).2 + 0.3 - 1.3 1/ — 1.2 + 3.0 - 0.1 + 1.0 + + + 0,3 + 0.1 + 0.1 + 0.2 + 2.1 + 0.5 + 1.5 - 0.2 V y + 2.3 Last Wednesday of July to last Wednesday of August 1953 1952 1951 1950 1h 99 1918 + 0.2 + 0.3 + 0.5 + 1.2 + 0.7 + 0.5 + + — + + - + + + + - o.L 0.2 Oi .i 0.1 0.2 0.2 + + — + + 1.0 + 0.3 - 0.5 1/ + 0.3 + 0.1 n. a. n. a. n.a. n.a. + 0.1 n # 3,* n # s* i H* 5e L n.a. + 0.1 n. a. + 2.3 - 0.2 0.2 0.1 0.2 0.1 '0.1 0.1 0.5 0.1 0.3 0.1 y + 0.1 0ok — H o 3Le U. S. Governmeit securities - 0.6 - 0.9 + Other securities + 0.2 + 0.3 - 0.1 + 0I. .4 + 0.2 + 0.1 - 0.3 — Ol. oj + 0.8 + 0.9 + 3.2 + O.ii Total loans and investments (less interbank) 0.8 l/ Less than #50 million n.a. t o available lt 2/ Data for all commercial banks will not be revised to conform with changes in weekly reporting data until all bank call data are available on new basis 3/ As a result of inclusion of banks in Hawaii, total credit increased about #300 million; total loans $200 million; and U, S. Government securities, $100 million. Not for publication - 6 - L.U.3 Table 1 Estimated Changes in Loans and Investments at All Commercial Banks (In billions of dollars) End of June to last Wednesday in August Total loans (excluding interbank) Business Real estate Security Agricultural Consumer All other U, S. Government securities Other securities Total loans and investments (less interbank) Item Total loans (excluding interbank) Business Real estate Security Agricultural Consumer All other 1959 3/ 1958 1957 1956 1955 1951 + 2.5 — 1.5 - o.5 + 0.1 + l.U — 1.3 + + + + + — + — — + + + — + + + - + - + o.h — o.5 + OI .t - 1.8 1/ + 0.1 + 0.2 — 0.6 + 1.5 + 0.7 + 0.2 + 0.1 0.9 0.5 0.1 0.1 01. .} 1/ + 1.9 0.6 0.2 0.1 0.2 0.2 1/ 0.3 0.3 O.Ii 0.3 0.1 1/ 1.0 0.5 0.3 o.5 + O.h 0.3 o.U 0.1 1.3 u + 0.2 + 0.1 + 0.6 - 0.8 + 3-8 + 0.1 — 0.1 + 0.1 + 0.2 + 0.3 + o.5 + 0.8 + 2.7 End of June to last Wednesday in August 1953 1952 1951 1950 19h9 191*8 + 0.5 + 0.5 — 0.1 + 2.2 y + 0.6 + + — + 0.2 0.2 Ooii 0.2 1/ - (. 51 + + — + + + 0.6 — 1.6 + 3.5 + 0.3 + 0.6 + o.5 + 0.2 + 1.2 + 3.9 + 1.1 + 0.3 + + 0.2 + — 1/ + 0.2 + + 0.2 + — 0.1 ; — 0.2 0.2 O.h 0.2 0.3 0.1 U» S. Government securities + h»o + 0.8 Other securities + 0.2 + O.h + i. i7 + 1.7 Total loans and investments (less interbank) 2j 1/ + 0.5 l.U 0*5 0.2 0.1 0.5 0.2 1 oc # 1 t n. 3 . , n.a. n. a. 11. dim + 0.1 + 0.2 n.a. n. s . i He He c# l n.a. 1/ Less than #$0 million. n.a. Not available 2/ Dates are for June 30 for all years except 1959, 1958, and 1957 which are for last Wednesday. 3/ As a result of inclusion of banks in Hawaii, in August 1959, total credit increased about $300 million5 total loans $200 millionj and U. S. Government securities, #100 million. Not for publication "7 " Table 1 L.4.3 ' Estimated Changes In Loans and Investments at All Commercial Banks (In billions of dollars) rcem Total loans (excluding interbank) Business Beal estate Security Agricultural Consumer All other I . S. Government securities F Other securities Total loans and investments (less interbank) Item End of December to last Wednesday in August 1959 2/ 3/ 1958 1957 1956 1955 • 1954 + 7.6 - 1.1 + 1.9 + 4.3 + 5.8 - 1.5 + + + + + + — + + + + + + + + + + + + + + 3.0 1.9 0.3 1.3 1.6 0.8 - 1.4 + 0.9 1/ - 1.2 - 0.1 + 0.2 3.0 2.1 0.6 0.1 1.8 1.2 2.2 1.0 0.6 0.5 0.1 0.3 1.2 0.3 0.5 0.4 1.1 0.1 3.2 1.3 1.0 0.5 1.1 0.3 - 6.4 + 7.9 - 2.4 - 4.4 - 6.5 + 3*9 1/ + 2.3 + 0.6 - 0.3 + 0.6 + 1.0 + 1.3 + 9.0 + 0.1 - 0.5 - 0.1 + 3.4 End of December to last Wednesday in August # e 1952 1951 1950 1949 1948 + 1.4 + 2.0 + 2.4 + 4.0 - 1.5 + 2.4 - 0.2 + 0.7 - 0.4 1/ . + 1.4 + 0.1 - 0.4 + 0.7 + 0.1 + 0.5 + 1.1 1/ + 2.0 + 0.8 - 0.7 + 0.4 1/ + 0.1 + 1.2 + 1.4 1/ - 0.3 + 1.3 + 0.4 n.a. n.a. n.a. n.a. + 0.5 n.a. n.a. n.a. n.a. n.a. + 0.8 n.a. U. S. Government securities e 1953 - 0.7 + 0.5 - 2.9 - 2.8 + 4.1 - 4.1 Other securities + 0.4 + 1.1 + 0.3 + 1.6 + 0.8 + 0.4 + 1.0 + 3.5 - 0.2 + 2.8 + 3.4 - 1.4 Total loans (excluding interbank) Business Beal estate Security Agricultural Consumer All other Total loans and investments (less interbank) n.a. Not available. l/ Less than $50 million. 2/ Data for all commercial banks will not be revised to conform with changes in weekly reporting data until all bank call data are available on new basis. 3/ Structure changes in 1959 added about $1 billion to total credit; $600 million in loans; $300 million in U. S. Government securities; and $100 million in other securities. Beal estate loans increased about $300 million; business loans $100 million; and consumer loans $100 million. Not for publication L.li.3 - 8 - Table 1 Changes in Loans and Investments at City and Country Banks (In millions of dollars) Item Last Wednesday in July to last Wednesday in August 1958 1959 1957 1956 : 1955 1951 Weekly reporting banks 1/ Total loans U. S. Government securities Other securities Total loans and investments + - 78 9 975 125 311 + + + 2i lG 900 155 815 + 367 - 327 + 65 + 105 + 397 + 526 + 103 +1,026 + 632 -1,213 + 79 - 502 - 291 +1,886 + 27 +1,622 + 289 + 79 + 1 + 368 + 7k + 89 + 126 + 51 + 266 + 18 + 300 + lk + 332 - U5 + 23 + 182 + - 286 + 7 56 + k6 + 517 Country member banks Total loans U. S. Government securities Other securities Total loans and investments Item + 676 + 111 + 861 20k Last Wednesday in July to last Wednesday in August 1952 1953 1951 1950 19U9 19L8 Weekly reporting banks l/ a 1 Total loans + 98 U. S. Government securities 700 Other securities + 89 Total loans and investments + 3k + 10 *7 - 19 1* 1 - + 37k + — + + 882 6L5 305 552 + I.0 46 +1,717 + ia +2,321 + 263 - 168 + 63 + 158 + 173 + 6 + 59 • 238 + + 101 + 265 6 + 360 + 317 — 106 + 73 + 21 8* + 127 + 589 + u + 168 - 13 * + l i + 129 ~l,0li3 + 11*5 Country member banks Total loans U. S. Government securities Other securities Total loans and investments + 103 + 17 + 5U * 17U + 757 l/ Beginning July 1, 1959, changes are on revised basis. Notes Data for country banks include interbank loans, which on June 10, 1959, were about #100 million. Data for weekly reporting banks include interbank loans prior to 1952. Hot for publication # * ^ » » L.4.3 Table 1 Changes in Loans and Investments at City and Country Banks (In millions of dollars) Item End of June to last Wednesday in August 1/ 1959 1958 1956 1957 1955 1954 Weekly reporting banks 2/ Total loans U. S. Government securities Other securities Total loans and investments +1,258 - 713 - 145 + 400 -1,885 + 287 + 92 -1,506 - 519 3 + 20 - 502 - 24 6 51 81 +1,022* -1,128 + 46 — 60 - 987 +2,382 + 77 +1,472 + 195 + 177 + 29 + 701 + 736 + 47 + + It6 + 355 + 17 + 94 + 351 36 + 411 + 379 + 249 + 21 + 648 I. - 209 + 989 + 71 + 8*1 - Item 97 00 O Total loans U« S. Government securities Other securities Total loans and investments + Country member banks + 4i8 End of June to last Wednesday in August 1/ 1953 1952 1951 1950 1949 1948 + 300 +2,794 + 198 +3,292 + 37 - 251 + 320 + 106 + 39 - 246 + 60 - 147 +1,669 -1,556 + 497 + 610 - 391 +3,129: + 432 +3,170 + 382 + 36 + 177 + 595 + 238 + 988 + 26 +1,251 + 365 + 627 + 45 +1,037 + 60 + 487 + 10 + 557 + 528 - 159 + 89 + 457 + 181 + 765 + 55 +1,000 + 261 + 137 + 6 + 404 Weekly reporting banks 2/ Total loans U. So Government securities Other securities Total loans and investments Country member banks Total loans U. S. Government securities Other securities Total loans and investments l/ Country bank data are for June call dates except for 1959, 1958, and 1957, which are for last Wednesday. 2/ Beginning July 1, 1959, changes are on revised basis. Note: Data for country banks include interbank loans, which on June 10, 1959, were about $100 million. Data for weekly reporting banks include interbank loans prior to 1952. Hot for publication - 10 - L.lt.3 Table 1 Changes in Loans and Investments at City and Country Banks (In millions of dollars) Item End of December to last Wednesday in August 1/ 1959 1958 1957 1956 1955 1951* +U,007 -5,281 - 193 -1,1*69 -2,7142 +6,It 79 +1,603 +5,31*0 + 158 -1,71*0 + 127 -1,1*55 +2,730 -3,51*6 - 379 -1,195 +3,716 -5,951* + 1** 11 -2,091* -2,1*11 +3,307 + 816 +1,712 +2,555 -1,052 + 73 +1,576 + 835 + 982 + 53b +2,351 +1,251* - 61 8* + 10 *5 + 975 +1,1*31 -1,11*0 + 97 + 388 +1,736 -1,059 + 312 + 988 + + + + Weekly reporting banks 2/ Total loans U. S. Government securities Other securities Total loans and investments Country member banks 3/ Total loans Uo S, Government securities Other securities Total loans and investments Item 31 9* 31*5 182 921 End of December to last Wednesday in August 1/ 1953 1952 1951 + 80 - 96 2 + 191* - 688 + 10 *3 + 1 + 8* 18 +1,252 +1,317 -,11 27** + 126 -1,301 +1,053 - 167 + 130 +1,016 +1,202 + 2* 16 + 182 +1,630 + + + 1950 191*9 191*8 +2,359 : -2,387 +1,177 +1,11*9 —2,068 +1*,320 + 776 +3,028 + 71 9* -2,525 + 157 -1,571* +1,31*6 - 191 + 328 +1,1*83 + 21 0* + 376 + 31 + 612 +1,296 - 828 + 235 + 703 Weekly reporting banks 2/ Total loans U. S. Government securities Other securities Total loans and investments Country member banks 3/ Total loans U. S. Government securities Other securities Total loans and investments 930 6* 13 160 117 ** l/ Country bank data are for December call dates. 2f Beginning July 1, 1959, changes are on revised basis. 3/ Country bank assets and liabilities were increased about S350 million in April 1959 as a result of inclusion of a national bank in Hawaii and the shifting of six national banks in Alaska from nonmember banks. (Loans +200j U. S. Govt. +100; other securities +50;) Note: Data for country banks include interbank loans, which on June 10, 1959, were about $100 million. Data for weekly reporting banks include interbank loans prior to 1952. Not for publication L.4.3 - 11- Table 2 Changes In Commercial and Industrial Loans l/ (In millions of dollars) Business 01 sorrower Food processors Commodity dealers Trade concerns Total Sales finance All other - total Metals and products Textiles, apparel and leather Petroleum, coal, etc. Other manufacturing and mining Public utilities Construction All other types of business Classified Unclassified Total change Total change excluding sales finance Last Wednesday in July to last Wednesday in August 1959 1958 1957 1956 1955 1954 1953 1952 + + + + + + + + 104 99 17 220 + + + + 71 156 29 256 + 115 + 108 + 2 + 225 + + + + 60 29 31 120 - 24 + 45 + 9 + 30 + 89 - 11 - 5 + 73 + + + 2/ + 48 + 4 + 137 + 274 - 44 - 60 - 37 + 144 - 8 + 24 - 85 - 10 - 138 + 180 - 139 + 311 + 33 - 49 - 99 + 190 - 13 + 93 - 105 + 85 + 22 + 15 + 24 + 50 1 + 48 + 54 + 78 + 20 + 40 + 2 + 33 + 18 + 37 + 68 + 31 + 19 + 10 - 6 - 7 + 27 + 11 + 17 + 5 + 60 + 52 + 19 + 17 + 41 + 2 + 2 - 16 + 19 + 7 + 76 + 19 + 7 + 38 + 12 - 15 + 56 + 46 + 86 + 120 + 3 + 50 + 36 + 381 + 10 + 293 + 39 + 249 + 24 + 541 + 705 - 64 + 10 1/- 60 4/-687 + 201 + 47 + 304 + 48 + 391 + 332 + 273 + 551 3A645 4/-751 + 248 + 352 + 391 + 284 + 269 + 4l4 1A371 + 308 + 389 115 86 36 237 4/-707 l/ Prior to week ending January 11, 1956/ included changes in agricultural loans. 2/ Hot included in business loans on revised basis. 3/ CCC certificates of interest which are included in data are estimated to have declined $200 million. 4/ CCC certificates of interest which are included in data are estimated to have declined $435 million. Note: Classified data are for a sample of about 210 banks reporting changes in their larger loans, these banks hold over 95 per cent of total commercial and industrial loans of all weekly reporting banks and nearly 75 per cent of those of all commercial banks. Hot for publication 167 83 ,3 247 L.U.3 - 12 - Table 2 Changes in Commercial and Industrial Loans 1/ (In millions of dollars) End of June to end of August Business of Borrower 1959 Food processors Commodity dealers Trade concerns Total 1958 1957 + 55 - 12 + 15 5 - 19 - 30 + + 197 + 219 95 + 111 + 13 + • 60 " 18 - 21 - 12 « • 2 + 173 + 262 + 150 + lh - 38 + + bz + 227 + 112 Sales finance All other - total Metals and products Textiles, apparel and leather Petroleum, coal,etc. Other manufacturing and mining Public utilities Construction All other types of business Classified Unclassified Total change Total change excluding sales finance 12 + 118 + 6 + 130 2/ - 66 + 210 + 13 - 539 -~TUl3 + 135 - 8 - 61 + 28 + ll Oi 1956 1955 1951 - 276 - 67 + 238 - 58 - 2U - lt l3 lt i2 36 2U9 69 i. - 31h + 208 + UU2 - 321: + lj9 - 66 = ~ ~Wi -~2^9 - 13 - 232 - 63 ^™2lC + 70 + 76 + 106 + 76 + 67 + 57 28 + 118 + 38 - 62 h + 97 - + 135 + h6 - 11 + 2b + U3 - lOl + l + 37 + 35 i 8 - 17 - 132 + 37 + 20 — 66 + lh Ihh + 85 + i 3 + 110 + 185 i - 1952 - + 66 + 1953 + + + 17 + 13 59 - 127 l t + 18 i 59 + 90 26 + k36 * 58 - h93 - - 1*16 + 1.3 + 830 - 309 40 + l9t tl - 520 - 511 + 322 3/+670j4,111 + k9h - teh — 238 + 389 3/+h32*4,053 + 118 + 222 28 - 98 - 81 3/-160 L/-803 + + 88 + l l it 6 + 39 9h + 153 1/ Prior to week ending January 11, 1956, included changes in agricultural loans. 2/ Not included in business loans on revised basis. 3/ Includes CCC certificates of interest which are estimated to have declined $300 million. h/ Includes CCC certificates of interest which are estimated to have declined $1*75 million. Note: Classified data are for a sample of about 210 banks reporting changes in their larger loans, these banks hold over 95 per cent of total commercial and industrial loans of all weekly reporting banks and nearly 75 per cent of those of all commercial banks. Not for publication - 13 Table 3 L.lt.3 Estimated Changes in Deposits and Currency ~ (In billions of dollars) Item Seasonally adjusted data Demand deposits adjusted Currency outside banks Total Seasonally unadjusted data Demand deposits adjusted Currency outside banks Total Time deposits Commercial banks Mutual savings banks U. S. Government deposits Total Factors affecting deposits and currency Bank loans and investments other than U. S.. Govt. sec.2/ Commercial ~ ~ Mutual savings Bank holdings of U. S. Government securities: Federal Reserve Commercial Mutual saving and other Gold stock and foreign deposits at F. R. Banks Other factors Last Wednesday in July to last Wednesday in August 1959 3/ 1958 - 1.2 — 0.1 - 1.3 - 0.3 1/ - 0.3 - 0.6 + 0.1 — 0.5 + 0.6 + o.U + 0.3 + 0.1; + 0.1 + 0.2 + 0.9 + l i .i - 0.2 + 1.5 (signs indicate - 1.5 1/ - 1.5 + 1.2 + 1.3 + 0.2 + 0.3 + 0.2 + 0.2 — — + + + + + 0.8 I T 5.8 0.1 1/ — 5.6 2.U 0.3 2.0 0.1 - 0.1 - 1.1 1957 1956 1955 l?ft l/3 + 0.3 — 0.3 + 0.1 + ¥.2 * 0.1 1.2 0.1; - 1.3 — Oi .t 01 . if - T75 1/ - 0.7 07? 0.3 0.3 ±L — 0.6 — 0.5 0.3 + 0.1; + 0.2 + 0.2 + 0.1 0.7 0.6 0.2 + 0.8 + 0.6 * 0.2 + 1.2 + 1.2 y - 0.5 - 0.7 + 0.2 0.1 + + + - 1.2 0.3 1.0 0.1 - 1.7 - 0.U - 1.2 + 2.3 - 0.6 + 3.0 1/ - 0.1 - 0.3 + 0.1 - 0.1 0 0 Ool + 0.3 0.2 + o.i 01 . 01 . + 0.7 + 2.1 — 0.9 1.7 1 6 - o.l . - 0.3 16 . effect on deposits and currency) + + + Vl T. J y i / n.9 y y Less than $50 million. , Total includes foreign loans on gold, holdings of bankers' acceptances at the Federal Reserve, and loans to foreign banksj changes in these items are generally relatively small. In addition even if there were no changes in these items, changes at commercial and mutual savings banks would not add to total change which is "net" because commercial banks exclude all interbank loans, domestic and foreign, j/ In August 1959, as a result of the addition of nonmember banks in Hawaii, demand deposits adjusted increased $200 million and time deposits at commercial banks increased #200 million. Hot for publication - 1% — L,lu3 Table 3 Estimated Changes in Deposits and Currency (In billions of dollars) End of June to last Wednesday of August Item 1959 V 1958 Seasonally adjusted data 1/ Demand deposits adjusted Currency outside banks Total + 0 1 . + 1.8 .) + 0.1 2/ + Ol . t + 1.9 Seasonally unadjusted data 1/ Demand deposits adjusted Currency outside banks Total Time, deposits Commercial banks Mutual savings banks U. S. Government deposits Total + + + + + + + + Factors affecting deposits an ^ currency Bank loans and investments other than U. S» Govt. sec.3/ Commercial Mutual savings Bank holdings of U. S. Government securities: Federal Reserve Commercial Mutual saving and other Gold stock and foreign deposits at F. H. Banks Other factors ol .t 0.1 0.3 0.2 0.2 0.1 1.3 2.1 + + + + + + — — 1.8 0.2 2.0 ll .t 1.1 0.3 l. t0 0.6 1956 1955 — 0.5 — 0.5 - 0.1 - 0.6 + 0.3 2/ + 0.3 + 1.3 - 0.1 + 1.2 - 0.5 2/ - 0.5 + 0.7 + 0.7 + 0.1 - 0.3 27- + + + + — + + + + + + + + + + + — + 1957 2'/ (signs indicate + 2.8 + 2.5 + 0.3 0.2 0.8 1.0 0.3 0.2 0.1 0.2 0.6 0.7 0.1 0.6 0.3 0.2 0.2 0.2 0.7 1951 1.3 0.2 1.1 0.7 0.5 0.2 0.7 1.1 deposits and cur: rency) + 1.8. - 0.7 - 0.1 - oi .t + 0.3 2/ - gy + 0.5 + Ol .t - 0.1 •+ 1.8 + 0.6 + 0.2 — 0.6 + 1.5 + 0.2 1/ + + + — 1.1 0.4 0.7 0.1 + Ol .t - 6.1 •+ 6.2 - 0.7 + 0.6 - 0.1 — 0.8 2/ - 11 ." - 0.1 - 0.5 + 0.1 - 1.1 2/ - 1.0 2/ - H.lt + 0.1 - 0.8 - 1.1 - 1.7 + Ol .t — 0.3 — 1.0 + 1.5 - 1.1 + Ol .t + 2.5 + 3.8 - 0.2 1/ Seasonally adjusted data are for last Wednesday throughout5 unadjusted data are ~ for last Wednesday except in case of June and December call dates, when ~ available. Data for June 1959* 1958$ and 1957 are for last Wednesday throughout. 2/ Less than #50 million. 3/ Total includes foreign loans on gold, holdings of bankers' acceptances at the ~ Federal Reserve, and loans to foreign banks; changes in these items are generally ~ relatively small. In addition even if there were no changes in these items, changes at commercial and mutual savings banks would not add to total change which is "net11 because commercial banks exclude all interbank loans, domestic and foreign. k/ In August 1959, as a result of the addition of nonmember banks in Hawaii demand deposits adjusted increased $200 million and time deposits at commercial banks increased $200 million. Not for publication l.U.3 -15 Table 3 Estimated Changes in Deposits and Currency (In billions of dollars) Item Seasonally adjusted data 1/ Demand deposits adjusted Currency outside banks Total Seasonally unadjusted data 1/ Demand deposits adjusted ~ * Currency outside banks Total Time deposits Commercial banks Mutual savings banks U. S. Government deposits Total Factors affecting deposits ond currency Bank loans and investments other than U. S. Govt. sec.3/ Commercial ~ Mutual savings Bank holdings of U. S. Government securities: Federal Reserve Commercial Mutual saving and other Gold stock and foreign deposits at F. R. Banks Other factors End of December to last Wednesday of August 1959 V 1958 1957 1956 1955 1951; + 1.6 + 0.3 + 1.9 + l. il 2/ + l. il + 0.1 + 0.2 + 0.3 - l l - 2.8 ul - 0.3 - 0.3 - i . 7 - 3.1 t + 2.9 + 7.9 + 2.3 + 6.6 + 0.7 + 1.1; + 1.6 + 1.5 - 0.3 + 6.1; (signs indicate — 6.3 - 0.5 — 6.8 + + 7.8 175 11 . + + 3.0 "TT? 2.1 — 6.3 + 8.7 - + 7.9 +~~Tu2 6.k 1/ - 0.9 - 0.9 - 0.1 - 16 . - 3.7 + Ol .i + 0.1 + o.5 + 2.8 + 0.3 + 3.1 + 1.5 - o.U + l.i - 5.1; - 2.71 - 3.1 - 0.8 — 0.6 - 1.2 - 6.2 - 3i2 - h.2 + h»9 + 2.5 + 2.1 + 3.6 + i. t l + 1.5 + 1.2 + 2.5 + 1.0 + 1.2 + 1.2 + 1.2 + o.h + 1.9 + 0.5 + 1.3 - 1.5 - 1.9 — 0.6 • + o.7 effect on deposits and currency) + 3.7 + 2.5 + 1.5 + 5.1; + h.O + 1.8 - h.3 — - 1.6 - 2.1; - 0.3 + 0.6 - 1.5 1 5.8 l.i h'k 0.3 + 0.1 — 1.6 + 7.9 + 6.1; + 1.6 + 1.2 - 0.5 + 1.8 - 7.9 - l.Z — 6.5 - 0.2 + + - 1.1; 2.0 3.9 0.5 + 0.1 - 0.3 - 0.7 • - 1.6 1/ Seasonally adjusted data are for last Wednesday throughout; unadjusted data are for last Wednesday except in case of June and December call dates, when available. 2/ Less than $50 million. 3/ Total includes foreign loans on gold, holdings of bankers' acceptances at the Federal Reserve, and loans to foreign banks; changes in these items are generally small. In addition even if there were no changes in these items, changes at commercial and mutual savings banks would not add to total change which is "net" because commercial banks exclude all interbank loans, domestic and foreign. 4/ During 1959, through August, as a result of structure changes, demand deposits adjusted increased $1*00 million; time deposits at commercial banks increased $700 million; and time deposits at mutual savings banks declined $300 million. Not for publication - 16 - 3 Table k Free Reserves (excess reserves minus member bank borrowings; based on average of daily figures; in millions of dollars) All member New York Chicago Reserve city Country Quarterly averages - 10 18 - 28 - 1t 4 - 16 1 * 1 - 17 27 63 - 55 - 82 - 363 - - 67 56 - 215 - 393 1958: January February March April Mhy June July August September October November December 122 3l 2t 195 493 5* 17 18* *1 5* 16 383 95 96 20 - Il l - Jt6 L- 25 12 * - 3 51 7 16 - 22 - 25 - 6 - 18 7 7 12 1 * - Ihh 1 79 3 - 3 — 16 - 32 1959: January February March April May June July August - 59 - 17 * - 1* 10 - 258 - 318 - 513 -557 - 51 2* - 65 - 28 16 — 89 - 51 - 15 - 11 5* - 225 - 53 - 26 - 122 - - - 1* 16 - 193 -255 - 271 - 207 - 192 1958: First Second Third Fourth 31 1* 508 31*1 25 19591 First Second July August 29 5 12 19 26 September 2 5i IO 635 532 500 17 *7 51 3* - 25 52 - 8 - 13 * - 80 366 1*22 1*21* •8 20 - - 19h f - 62 16 89 57 56 22 201 198 189 197 337 353 10 *8 15 *9 399 10 *8 17 *1 12 *6 378 305 268 268 6h hi — 63 - hi - 37 - 223 195 228 281t 360 535 182 12 *0 281 202 11 9* 178 133 101 11 2* 158 - 33 26 15 * 51 28 32 - l*ol* 511 119 ** 31 9* 397 391 13 * 95 217 216 155 81 Notes Data for second half of August and September are preliminarye Not for publication 225 137 - 17 - L.4.3 Table 5 Changes In Member Bank Reserves, with Relevant Factors (Monthly average of daily figures; in millions of dollars) August Item July - August 19# 1958 1959 - 58 - 29 + 162 - 1* 13 - 8 - 143 + 85 - 8 21 Jan - August 1958 1959 20 - 286 - 840 + 85 29 - 253 - + 85 - 29 + 9 - 253 - 33 -1,440 + 5k2 + 58 1958 Member bank reserve balances Total Required reserves 1/ Effect of reduction in requirements Effect of deposit change Excess reserves 1/ Principal factors Currency in circulation Gold stock and foreign accounts Treasury operations Federal Reserve float Other factors Effect of above Tactors on reserves + 77 - 898 (signs indicate effect on.reserves + 56 - 4 - 177 - 229 + 377 + 664 - 69 - 53 - 132 - 145 - Mi 80 - 417 + 181 - 118 + 2 - 371 - 86 - 58 — 36 — + - 965 268 605 65 -1,586 - 17 - 585 - 269 - 260 - 357 - 529 - 780 - 990 -1,793 + 201 + 328 + 690 + 761 + 702 + 954 166 194 188 192 + 625 + 599 + 26 5 + + — + + - 27 6 332 56 18 +1,428 +1,790 - 363 10 + 87 - 17 + 110 + 451 7 - 458 6 - 62 - - 8U J Federal Reserve loans and investments: Total U. S. Govt, securities Outright Repurchase agreements Acceptances Discounts and advances: To member banks To others 28 It 4 7 51 12 + 143 1/ Data for August 1959 are preliminary Not for publication 661 708 48 10 — 18 » L.U.3 Tear or month End of Dec. 1950 1951 1952 1953 195U 19# 1956 1957 1928: July 30 Aug. 27 Sept.2U Oct. 29 Nov. 26 Dec. 31 1959: Jan. 28 3/ Feb. 25 Mar. 25 Apr. 29p U/ May 2 7 p ~ June 2Up July 29p Aug. 26p 5 / (in billions of dollars) (8) (It) (5) (6) (7) (9) (11) (12) (10) Seasonally Time deposits Total adjusted u. s . deposits Curmoney Demand CurGov't, rency and Demand supply and deposits Total Total rency Commer- Mutual Postal deposits outside currency (2+3) deposits outside time dep. adjusted (7+8+9) cial savings savings banks (5+6+10 2/ adjusted banks at com'l. +11) banks(l+7) (2) (1) (3) Seasonally ad, justed money supply 1 / 150.6 11U.3 120.1 12U.7 126.8 129.7 133.2 13U.lt 133.2 89.8 9U.5 97.8 99.5 102.8 105.8 106.7 105.1 21.5 25.6 26.9 27.3 26.9 27.li 27.7 28.1 158.0 I65.lt 170,5 176.5 181.6 185.0 189.3 92.3 98.2 101.5 102.5 106.6 109.9 lll.lt 110.3 59.2 61.5 65.8 70.lt 75.3 78.lt 82.2 89.1 137.6 137.3 136.7 138.1 138.8 139.1 109.5 109.2 108.9 110.2 110.6 111.3 28.1 28.1 27.8 27.9 28.2 28.1 199.9 200.0 199.lt 201.0 200.9 202.6 108.1 107.5 108.1 111.0 111.9 115.5 138.5 139.1 lUo.3 1U0.7 1U0.9 11*0.9 11*2.6 U|1.3 110.7 111.2 112.2 112.5 112.6 112.5 llU.l 112.9 27.8 27.9 28.1 28.2 28.3 28.lt 28.5 28.lt 201.9 202.8 20lt.lt 205.2 205.8 206.2 207.8 206.8 113.8 111.3 110.3 112.5 110.7 110.7 112.6 111.1 20.0 180.6 l8l t.t 50.6 56.1 20.9 22.6 2U.lt 26.3 28.1 30.0 31.7 2.9 2.7 2.5 2.U 2.1 1.9 1.6 1.3 3.7 3.9 5.6 U.8 5.1 U.U U.5 U.7 25.U 26.3 27.5 28.1 27.9 28.3 28.3 28.3 96.lt 97.0 97.2 97.lt 96.7 98.3 62.3 62.7 62.7 62.9 62.1 63.2 32.9 33.1 33.3 33.U 33.5 3U.0 1.2 1.2 1.2 1.2 1.1 1.1 U.8 6.2 5.0 U.2 6.3 U.9 27.9 28.0 27.9 28.0 28.8 28.7 238.7 238.1 2U0.6 2U3.7 2U7.5 98.lt 98.7 99.5 99.9 63.lt 63.7 61t.l 6U.5 6U.9 65.3 65.2 65.5 33.8 3U.0 3U.3 3U.3 3U.U 3U.6 3U.6 3U.7 1.1 1.1 1.1 1.1 1.1 1.1 1.0 1.0 5.3 5.0 U.U 5.1 5.7 5.2 5.6 6.5 27.6 27.7 27.9 27.9 28.1 28.3 28.U 28.U 2U5.1 2U2.7 2U2.0 2U5.U 2UU.8 2U5.1 2U7.U 2U7.2 36.3 37.9 it0.7 13.7 lt6.8 100.U 101.0 100.8 101.2 189.9 200.U 205.7 21U.8 221.0 226.u 232.3 237.2 p Preliminary. ^ ^ ... w w 2/ At commercial, savings, and Federal Reserve Banks. 3/ As a result of the addition of all banks in Alaska, time deposits at commercial banks increased almost $100 million and demand deposits adjusted increased about #100 million. As a result of the absorption of a mutual savings bank, time deposits at commercial banks increased #300 million and those at mutual savings banks declined #300 million. h/ As a result of inclusion of a national bank in Hawaii, demand deposits adjusted increased about #100 million and time deposits at commercial banks about #100 million. 5/ As a result of inclusion of all banks in Hawaii, demand deposits adjusted increased about #200 million and time aeposits at commercial banks about #200 million. publication Not for e e e e e e e e L.4.3 - 19 Loans and Investments at All Commercial Banks ( In billions of dollars) M 1947: 1948: 1949: •1950s 1951s 1952: 1953: 1954: 1955s •l956s 1957: Loans and investments Date Dec. Dec. Dec. Decv Dec. Dec. Dec. Dec. Dec. Dec. Dec. 31 31 31 31 31 31 31 31 31 31 31 U. S. Other Govt. secur- Total Business Real Secu- Farm Consecur- ities loans estate ritysumer ities 116.2 114.2 120.1 126.6 132.5 141.5 145.5 155.7 160.3 164.5 169.3 69.2 62.6 67.O 62.0 61.5 63.3 63.4 69.0 61.6 58.6 58.2 9.0 9.2 10.2 12.4 13.3 14.1 14.7 16.3 16.7 16.3 17.9 37.9 42.4 42.9 52.2 57.6 64.0 67.4 70.4 82.0 89.7 93.2 18.9 17.1 21.9 25.9 27.9 27.2 26.9 33.2 38.7 40.5 1958: June 23 July 30 . Aug. 27 • Sept. 24 Oct. 29 Nov. 26 Dec. 31 178.2 176.2 178.3 177.9 180.1 182.7 184.4 64.2 64.1 66.1 64.7 66.2 67.7 66.4 20.1 19.9 20.2 20.6 20.5 20.3 20.6 93.9 92.2 92.1 92.6 93.4 94.7 97.5 38.9 37.9 38.3 38.7 38.9 39.3 40.4 .1959: 1/ Jan. 28 • ~ Feb. 25 Mar. 25 £/ Apr. 29p ~ May 27p June 24p July 29p 3/ 4/ Aug. 26p I83.8 181.9 181.1 183.7 I83.6 183.8 185.2 185.7 67.5 65.5 63.2 63.5 62.4 60.6 60.8 60.0 20.4 20.4 20.6 20.9 20.8 20.6 20.6 20.6 95.9 96.0 ! 97.4 99.3 100.5 102.6 103.8 105.1 39.2 39.2 40.2 18.2 4. 06 lll i.i 42.5 42.8 l31 t.i 9.1 10.8 2.1 2.3 II.5 2.6 13.5 2.9 II 6 2 6 I. . 15.7 3.2 16.7 3.6 18.4 4.5 20.8 5.0 22.5 4.3 23.1 4.2 23.7 23.9 2ii.l 2li.3 2li.7 I.7 2.9 3.1 2.9 3I .t 3.9 5.0' 5.2 I. 5 t II.2 I. ti 4.7 25.3 25.6 25.7 25.9 26.3 26.6 26.9 27.1 27.li I. 2 t l. t0 3.9 4.3 l. il l. t0 4.1 l. il 5.0 5.0 i. i8 I .9 t 4.9 5.0 5.1 5.1 i. t6 l. i6 I. 18 4.9 5.0 2.8 3.1 3.4 l. t2 4.5 4.9 13.2 5.1 5.6 6.5 15.7 7.3 I16 I. I . 15.5 16 5.6 4.5 3.6 3.7 3.6 3.9 I. 7 t 25.0 3.8 i. i8 5.8 7.4 7.5 91 .1 10.9 10.9 All other 15.6 15.6 15.6 15.6 15.6 15.8 15.9 16.0 16.1 16.5 16.8 17.2 17.li 17.6 7.0 7.5 7.4 7.6 7.5 7.7 8.0 8.3 8.1 8.2 8i .i 8.6 8.8 9.1 9.3 9.5 1/ Total credit increased over |1|00 million in January as a result of bank structure changes, 2/ Total credit increased about #200 million as a result of bank structure changes. J5/ Total credit increased about $300 million as a result of bank structure changes. 3 / Structure changes in 1959, on balance through August added almost $1 billion to total creditj #600 million in loans; #300 million in U. S. Government securities; and #100 million in other securities, leal estate loans increased about #300 million; business loans #100 million; and consumer loans, #100 million. Jfotes 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. Data for all commercial banks will not be revised to conform with changes in weekly reporting data until all bank data are available on new basis. ^Jot. for publication L September 18, 1959
@FedFRASER