H.4.1 Factors Affecting Reserve Balances of Depository Institutions

BOARD OF GOVERNORS For Immediate Release H.4.1 OF THE FEDERAL RESERVE SYSTEM September 1, i960 WEEKLY AVERAGES OF MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS and STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS The average of daily figures of total member bank reserves held during the week ended August 31 increased a net of million to $18, 408 million. Cash allowed as reserves increased $307 million, largely reflecting an estimate of the increase in currency and coin that country member banks were permitted to count as reserves beginning August 25; and member bank reserve balances at the Federal Reserve Banks decreased $303 million. Estimated required reserves decreased $105 million; and estimated excess reserves increased $109 million to $574 million. Excess reserves exceeded member bank borrowings at the Federal Reserve Banks by $301 million, compared with the revised figure of $272 million the week before. The figure for excess reserves, however, necessarily is based in part on preliminary estimates of the credit received by country banks as the result of the vault cash action. The principal changes reducing average reserve balances with Federal Reserve Banks were decreases of $226 million in Federal Reserve float, $90 million in U. S. Government securities bought outright and $114 million held under repurchase agreement, and $20 million in gold stock, and an increase of $30 million in foreign deposits with Federal Reserve Banks. The principal offsetting changes were an increase of $80 million in member bank borrowings and a decrease of $107 million in currency in circulation. Total Reserve Bank credit decreased $363 million. As of Wednesday, August 31, holdings of U. S. Government securities bought outright were $57 million lower than a week earlier, U. S. Government securities held under repurchase agreement were $56 million higher, and member bank borrowings were $167 million higher. Averages of daily figures Member bank reserves, Week ended Change from week ended Wednesday Reserve Bank credit, Aug. 31, Aug. 24, Sept. 2, Aug. 31, and related items I960 I960 1959 I960 (In millions of dollars) Reserve Bank credit: U. S. Government securities— Bought outright--System account 26,682 - 90 + 32 26,640 Held under repurchase agreement 106 -114 + 65 122 Acceptances-- Bought outright 32 - 2 + 11 32 Held under repurchase agreement 1 - 12 1 - - Loans, discounts, and advances-- Member bank borrowings 273 + 80 692 405 - Other * — — — — - - Float 788 -226 48 707 • Total Reserve Bank credit 27,882 ^"63 633 27,907 Gold stock 19,00^ r J - 20 - 519 19'°°5 » - TTrreeaassuurryy ccuurrrreennccyy oouuttssttaannddiinngg 5,370 + 4 + 96 5,37i^-y 52,258 -380 4056 52,283- <0 Currency in circulation 31,980 . -107 + 48 32,025- 7 Treasury cash holdings 396' ' - 4 6 392 • Treasury deposits with F. R. Banks 487 + 2 74 481 - Foreign deposits with F. R. Banks 225 + 30 - 35 204 Other deposits with F. R. Banks 384 + k 4- 51 432 Other F. R. accounts (net) 1,014 - 2 246 1,013 . 34,486 - 77 - 262 3515#-^" Member bank reserves: With Federal Reserve Banks 17,772 -303 794 17,735 Cash allowed as reserves (estimated) 636 +307 + 636 636 Total reserves held 18,4oS + 4 158 18,371 » Required reserves (estimated) 17,834 -105 - 331 17,850 Excess reserves (estimated) 574 +109 + 173 521 * Less than $500,000. On August 31, I960, U. S. Government securities held in custody by the Federal Reserve Banks for foreign account were $5,423 million, an increase of $38 million for the week and an increase of $1,119 million from the comparable date a year ago.

H.4.1(a) STATEMENT OF CONDITION OF THE TWELVE FEDERAL RESERVE BANKS COMBINED (In thousands of dollars) Change since Aug. 31, I * Sept. 2, I960 I960 1959 A S S E TS Gold certificate account 17,735,643 - 20,002 - 560,498 Redemption fund for F. R. notes 973,095 3,748 + 46,774 - Total gold certificate reserves 10,700,730 23,750 - 513,724 - F. R. notes of other Banks 442,535 12,198 + 30,511 Other cash 428,842 + 7,992 + 48,095 Discounts and advances 405,118 + 167,393 - 212,140 Acceptances: Bought outright 32,107 + 1 + 11,554 Held under repurchase agreement 500 2,731 + 117 - U. S. Government securities: Bought outright— Bills 2,639,407 - 57,000 9,993 Certificates 14,006,993 +3,500,000 —— Notes 7,510,298 — •» -3,500,000 Bonds 2,483,771 — mm w Total bought outright 26,640,469 - 57,000 9,993 Held under repurchase agreement 121,300 + 56,100 + 83,050 Total U. S. Government securities 26,761,769 900 + 73,057 - Total loans and securities 27,199,494 + 163,763 - 127,412 Due from foreign tanks 15 — W •» «e Cash items in process of collection 4,916,605 - 68,005 - 68,237 Bank premises 105,501 280 + 8,937 - Other assets 207,192 + 17,866 + 48,121 TOTAL ASSETS 52,000,922 + 85,388 - 573,709 L I A B I L I T I ES Federal Reserve note% ™~ 27,621,301 + 2222,, 558800 + 3377,,111155 Deposits: Member bank reserves 17,735,276 + 98,889 - 371,856 U. S. Treasurer--general account 481,413 - 37,096 - 59,199 Foreign 204,398 - 23,162 - 69,040 Other 431,820 + 48,623 + 86,581 Total deposits 10,052,907 + 07,254 - 413,514 Deferred availability cash items 4,209,4l4 40,792 10,243 - Other liabilities and accrued dividends 4l,550 - 802 + 2,249 TOTAL LIABILITIES 50,725,172 + 60,240 304,393 - C A P I T AL A C C O U N TS Capital'paid In™ 402,233 + 170 + 19,758 Surplus 774,808 —— - 93,602 Other capital accounts 106,709 + 16,978 115,472 - TOTAL LIABILITIES AND CAPITAL ACCOUNTS 52,008,922 + ...85,388 - 273,70% Ratio of gold certificate reserves to deposit and F. R. note liabilities combined 4400..33## .1$ 77$$ Contingent liability on acceptances purchased for foreign correspondents 203, 578 + 5,776 + 131,956 MATURITY DISTRIBUTION OF LOANS AND SECURITIES, AUGUST 31, I960 (Acceptances and securities held under repurchase agreement aire classified as maturing within 15 days in accordance with maximum maturity of the agreements.) Discounts and U. S • Government advances Acceptances securities Within 15 days 400,207 ~ 7,459 419,200 16 days to 90 days 4,849 25,148 6,471,687 91 days to 1 year 62 -- 12,734,378 Over 1 year to 5 years -- -- 5,686,647 Over 5 years to 10 years -- -- 1,178,574 Over 10 years — 271,283 Total 405,118 32,607 26,761,769

s.4.1(b) STATEMEN i T 1O 1F C O " N IDW I " TI " O ' N "1 ' O ' i F . EACH FEDERAL RESERVE BAN • K I ON AUG U e» S 4 T - 31, I960 Total Boston New York d P e h l i p la h - ia C l l a e n v d e . Richmond Atlanta Chicago L S o t u . is M ap i o nn li e s - K C an it s y a s Dallas Fra S n a c n is co ( In thousands of dollars) A S S E TS Gold certificate account 17,735,643 822,4o8 4,917,209 972,629 1540,920 973,287 832,769 3167,739 686,419 343,684 688,432 630,380 2159,767 Redemption fund for F. R. notes 973,095 59,796 216,146 59,052 86,087 81,589 62,038 178,532 43,848 23,680 45,221 32,497 84,609 Total gold certificate reserves 18,708,738 882,204 5,133,355 1031,681 1627,007 1054,876 894,807 3346,271 730,267 367,364 733,653 662,877 2244,376 F.R. notes of other Banks 442,535 52,786 86,147 44,832 14,452 25,216 71,717 29,925 14,177 24,757 20,293 16,405 41,828 Other cash 428,842 31,488 83,085 21,633 38,212 21,924 35,835 66,071 25,261 9,362 15,855 17,439 62,657 Discounts and advances 405,118 17,600 86,305 4,065 30,525 49,115 18,750 112,243 13,850 11,645 37,845 14,351 8,824 Acceptances: Bought outright 32,107 32,107 -- Held under rep. agree. 500 " 500 " — - " " U. S. Govt, securities: Bought outright— Bills 2,639,407 141,842 658,352 151,122 226,770 167,061 144,721 451,756 106,678 61,24? 113,286 106,368 310,204 Certificates 14,006,993 752,736 3,493,792 801,984 1203,439 886,573 768,017 2397,409 566,121 325,032 601,194 564,482 1646,214 Notes 7,510,298 403,603 1,873,309 430,010 645,262 475,364 411,798 1285,447 303,543 174,277 322,350 302,665 882,670 Bonds 2,483,771 133,478 619,532 142,211 213,398 157,210 136,188 425,117 100,386 57,636 106,606 100,096 291,913 Total 26,640,469 1431:659 6, 644,985 1525,327 2288,869 1686,208 1460,724 4559,729 1076,728 618,192 1143,436 1073,611 3131,001 Held under rep. agree. 121,300 121,300 1431,659 6,766,285 1525,127 2288,869 1686,208 1460,724 4559,729 1076,728 618,192 1143,436 1073,611 3131,001 Total U. S. Govt, sees. 26,761,769 Total loans & securities 27,199,494 1449,259 6,885,197 1529,392 2319,394 1735,323 1479,474 4671,972 1090,578 629,837 1181,281 1087,962 3139,825 Due from foreign banks 15 1 1/ 4 1 1 1 1 2 (2) (2) 1 12 Cash items in process of collection 4,916,605 348,567 914,994 300,561 412,790 380,081 370,962 798,941 206,274 143,519 257,043 265,471 517,402 Bank premises 105,501 4,051 9,547 3,856 8,833 6,295 10,623 20,949 6,737 4,926 4,524 13,438 11,722 Other assets 207,192 11,171 50,597 11,811 18,254 12,996 12,075 34,555 8,269 4,775 9.898 8,468 24,323 TOTAL ASSETS 52,008,922 2779,527 13,162,926 2943,767 4438,943 3236,712 2875,494 8968,686 2081,583 1184, 54o 2222,548 2072,06l 6042,135 1/ After deducting $11,000 participations of other Federal Reserve Banks. 2/ Less than $500.

H.4.l(c) STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK OH AUGUST 31, I960 Phila- Cleve- St. Minne- Kansas San Total Boston New York delphia land Richmond Atlanta Chicago Louis apolis City DDaallllaass Francisco L I A B I L I T I ES Federal Reserve notes 27,621,301 1595,793 6,427,631 1786,512 2512,155 2083,254 1570,965 5215,757 1188,032 594,742 1120,875 806,343 2719,242 Deposits: Member bank reserves 17,735,276 744,118 5,135,208 784,276 1390,538 722,257 877,651 2782,091 642,815 403,885 796,927 917,860 2537,650 U.S.Treasgen.acct. 481,413 30,337 56,348 36,583 37,089 31,172 31,307 49,767 30,754 23,487 37,343 34,118 83,108 Foreign 204,398 9,6o4 1/64,258 11,564 18,424 8,820 10,192 27,048 6,468 4,508 8,036 11,368 24,108 Other 431,820 384 373,013 3,06l 1,171 3,489 760 905 520 257 2,629 726 44,905 Total deposits 18,852,907 784,443 5,628,827 835,484 1447,222 765,738 919,910 2859,811 680,557 432,137 844,935 964,072 2689,771 Deferred availability cash items 4,209,414 333,166 732,799 244,925 357,178 325,286 314,733 705,032 168,248 127,058 201,180 227,707 472,102 Other liabilities and accrued dividends 41,550 2,344 10,978 2,134 3,890 2,709 2,170 6,466 1,488 1,266 1,743 1,569 4,793 TOTAL LIABILITIES 50,725,172 2715,74b 12,000,235 2869,055 4320,445 3176,987 2807,778 8787,066 2038,325 1155,203 2168,733 1999,691 5885,908 CAPITAL ACCOUNTS Capital paid in 402,233 19,927 114,217 23,433 37,277 18,341 21,315 55,908 13,430 9,237 16,952 23,133 49,063 Surplus 774,808 38,332 220,905 45,638 72,530 34,566 40,306 107,334 25,862 17,580 31,720 44,645 95,390 Other capital accounts 106.709 5.522 27,569 5.641 8,691 6,818 6,095 18,378 3,966 2,520 5,143 4,592 11,774 TOTAL LIABILITIES AND CAPITAL ACCOUNTS 52,008,922 2779,527 13,162,926 2943,767 4438,943 3236,712 2875,494 8968,686 2081,583 1184,540 2222,548 2072,061 6042,135 Conting. liab. on acceptances purchased for foreign correspondents 203,578 9,962 2/58,219 11,995 19,110 9,148 10,572 28,055 6,709 4,676 8,335 11,791 25,006 FEDERAL RESERVE AGENTS' ACCOUNTS F. R. notes outstanding 28,662,756 1678,886 6,671,398 1831,949 2621,131 2151,053 1641,524 5337,103 1231,438 611,259 1150,337 847,004 2009,674 Collat. for F. R. notes: Gold certificate acct. 10,465,000 530,000 2,800,000 700,000 920,000 675,000 500,000 1900,000 410,000 180,000 300,000 250,000 1300,000 Eligible paper 55,760 -- 4,065 -- -- -- — 13,850 -- 37,845 — U. S. Govt, securities 19.280.000 125P, 000 4.000.000 1200.000 1750.000 1500.000 1200.000 3700.000 935,000 450.000 870,000 625,000 1800,000 Total collateral 29,800,760 1780,000 6,800,000 1904,065 2670,000 2175,000 1700,000 5600,000 1358,850 630,000 1207,845 875,000 3100,000 l/ After deducting $140, 140,000 participations of other Federal Reserve Banks, 2/ After deducting $145, 359,000 participations of other Federal Reserve Banks.