H.4.1 Factors Affecting Reserve Balances of Depository Institutions

BOARD OP GOVERNORS For Immediate Release HT4.1 OP THE FEDERAL RESERVE SYSTEM February 2, I96I WEEKfcY AVERAGES OF MEMBER BAM RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS and STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS The average of daily figures of total member tank reserves held during the week ended February 1 decreased a net of $573 million to $18,890 million. Cash allowed as reserves decreased $115 million and member bank reserve balances at the Federal Reserve Banks decreased $458 million. Estimated required reserves decreased $50 million; and estimated excess reserves decreased $523 million to $477 million. Excess reserves exceeded member bank borrowings at the Federal Reserve Banks by $4ll million, compared with the revised figure of $953 million the week before. The principal changes reducing average reserve balances with Federal Reserve Banks were decreases of $221 million in Federal Reserve holdings of U. S• Government securities, $392 million in Federal Reserve float, and $49 million in gold stock. The principal offsetting change was a decrease of $190 million in currency in circulation. Total Reserve Bank credit decreased $597 million. As of Wednesday, February 1, holdings of U. S. Government securities bought outright were $177 million lower than a week earlier, U. S. Government securities held under repurchase agreement were $125 million higher, and member bank borrowings were $120 million higher. Outright holdings of bills, certificates, and notes decreased by $170 million, $5 million, and $2 million, respectively. All securities sold had maturities of less than one year. See attached note explaining changes in the publication of this press statement. Averages of daily figures Member bank reserves, Week ended Change from week ended Wednesday, Reserve Bank credit, Feb. 1, Jan. 25, Feb. 3, Feb. 1, and related items 1961 1961 I960 1961 (In millions oJ dollars) Reserve Bank credit: U. S. Government securities- Bought outright--System account 26,582 -239 -H, 140 26,570 Held under repurchase agreement 18 + 18 + 13 125 Acceptance s--bought outright 48 - 1 + 7 46 Discounts and advances-- Member bank borrowings 66 + 19 - 742 179 Other 9 - 1 + 6 9 Float 1,131 -392 + 24 859. Total Reserve Bank credit 27,853 -597 + 447 27,788 Gold stock 17,441 - 49 -2,004 17,441 Treasury currency outstanding 5,402 + 83 5,402 50,696 -1,474 50,631 Currency in circulation 31,774k- -190 + 209 31,752 Treasury cash holdings 4 2)lb + 7 12 427 Treasury deposits with F. R. Banks 510 ' + 3 «• - 456 Foreign deposits with F. R. Banks 227 - 18 - 12 225 Other deposits with F. R. Banks 393 + 1 + 60 380 Other F. R. accounts (net) 951 + 9 + 117 1,018 34,279 ^35 + 361 34,258 Member bank reserves: With Federal Reserve Banks 16,417 -458 -1,835 16,373 Cash allowed as reserves (estimated) 2,473 -115 +2,188 2,520 Total reserves held 18,890 -573 + 353 18,893 Required reserves (estimated) 18,413 - 50 + 357 18,4l4 Excess reserves (estimated) 477 -523 4 479 On February 1, 1961, U. S. Government securities held in custody by the Federal Reserve Banks for foreign account were $5,807 million, an increase of $83 million for the week and an increase of $1,341 million from the comparable date a year ago.

NOTE: Beginning this week the second page of this statement, heretofore shoving the condition of the 12 Federal Reserve Banks on a combined basis, will be oh a consolidated basis; and the figures on all pages will be in millions of dollars. The figures shown in parentheses on the consolidated statement are the eliminations made in the consolidating process. They include the following: (a) Elimination of the asset item, Federal Reserve notes of other Banks and a corresponding reduction in the liability item, Federal Reserve notes. The net liability figure represents the amount held outside of the Federal Reserve Banks. (b) Elimination of the interoffice duplication of deferred availability cash items at seme Federal Reserve Banks and cash items in process of collection at other Banks. This does not affect float figures as shoxm on page 1 of this statement. (c) Elimination, when it occurs, of collected funds held by one Reserve Bank which are due to another Bank and are on the books as an asset of the other Bank but have not been remitted because of local holidays or other reasons. The effect is to reduce two accounts, cash items in process of collection and "other" deposits, by identical amounts. (On page 1 of this statement on such an occasion, the item Other deposits with F. R. Banks is further reduced by the collected funds held by one Reserve Bank which are due to another Bank and are not on the bocks as an asset of the other Bank and which have not been remitted because of local holidays or other reasons. The figure of float on page 1 is revised to represent the net of cash items in process of collection less the total of deferred availability cash items and collected funds due other Federal Reserve Banks; heretofore the item of collected funds has not been deducted.) Comparisons with week-ago and year-ago figures are with consolidated figures. Totals will continue to be shown on a combined basis on the third and fourth pages, containing the statements of condition of the individual Reserve Banks. Because of its relatively small size the asset item "Due from foreign banks" has been combined into "Other assets."

CONSOLIDATED STATEMENT OF CONDITION H.4.1(a) OF TgB TWELVE FEDERAL RESERVE BANKS (In millions of dollars) Change since Feb* 1, Jan. 25, Feb* 3, 1961 1961 I960 A S S E TS Gold certificate account 16,082 8 - 2,099 Redemption fund for F. R. notes 1,058 - 2 + 88 Total gold certificate reserves 17,140 - 10 - 2,011 Cash (689) 518 + 19 + 8 Discounts and advances 188 + 120 - 615 Acceptances- -bought outright 46 - 1 + 6 U« S. Government securities: Bought outright-- Bills 2,524 170 + 1,110 Certificates 9,045 - 5 - 1,462 Notes 12,466 - 2 + 1,456 Bonds 2,535 - - + 51 Total bought outright 26,570 - 177 + 1,155 Held under repurchase agreement 125 + 125 + 91 Total U. S. Government securities 26,695 52 + 1,246 Total loans and securities 26,929 4- 67 + 637 Cash items in process of collection (962) 4,220 48 + 171 Bank premises 108 ** — + 8 Other assets 210 - 61 - 146 TOTAL ASSETS (1,651) 49,125 - 33 - 1,333 L I A B I L I T I ES Federal Reserve note's ~ — (689) 26,994 - 33 + 117 Deposits: Member bank reserves 1166,,337733 -«• - 11,,664488 U. S. Treasurer—general account 456 - 57 - 16 Foreign 225 - 36 + 6 Other 380 - 22 + 38 Total deposits 17,434 - 115 - 1,620 Deferred availability cash items (962) 3,361 + 99 + 123 Other liabilities and accrued dividends 32 1 + 8 TOTAL LIABILITIES (1,651) 47,821 1 O - 1,372 C A P I T AL A C C O U N TS Capital-paid In™ 4l8 +2 + 28 Surplus 817 — + 42 Other capital accounts 69 + 15 - 31 TOTAL LIABILITIES AND CAPITAL ACCOUNTS (1,651) 49,125 - 33 - 1,333 Ratio of gold certificate reserves to deposit and F. R. note liabilities combined (computed from figures as shown on the following pages--not consolidated) 38.0 + .1$ - 3*1# Contingent liability on acceptances purchased for foreign correspondents 195 - 18 + 70 * Figures in parentheses are the eliminations made in the consolidating process; see comparable figures on combined basis on following pages. MATURITY DISTRIBUTION OF LOANS AND SECURITIES. FEBRUARY 1. 196l (Acceptances and securities held under repurchase agreement are classified as maturing within 15 days in accordance with maximum maturity of the agreements.) Discounts and U. 5. Government advances Acceptances securities Within 15 days 17B 10 16 days to 90 days 10 36 1,276 91 days to 1 year -- -- 9,054 Over 1 year to 5 years -- -- 10,673 Over 5 years to 10 years — — ' 1,179 Over 10 years — 271 Total IBS S5 26,695

E.4.1(b) STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK OH FEBRUARY 1, I96I San New Phila- Cleve- Rich- At- St. Minne- Kansas Total Boston Chicago Dallas Fran- York delphia land mond lanta Louis apolis City cisco (In millions of dollars) A S S E TS Gold certificate account 16,082 671 4,173 920 1,323 1,007 797 2,84l 636 3^5 739 657 1,973 Redemption fund for F. R. notes 1,058 62 250 65 92 86 62 187 46 26 49 32 101 Total gold certificate reserves 17,140 7-33 4,423 985 1,415 1,093 859 3,028 682 371 788 689 2,074 F. R. notes of other Banks 689 65 173 48 54 39 85 65 23 23 15 34 65 Other cash 518 36 106 25 45 32 35 87 27 11 19 19 76 Discounts and advances 188 5 26 6 10 2 8 77 10 1 32 9 2 Acceptances: Bought outright 46 46 U, S. Government securities: Bought outright— Bills 2,524 136 630 144 217 160 138 432 102 58 108 102 297 Certificates 9,045 486 2,256 518 777 572 496 1,548 366 210 388 365 1,063 Notes 12,466 670 3,109 714 1,071 789 684 2,134 504 289 535 502 1,465 Bonds 2,535 136 632 145 218 161 139 434 102 59 109 102 298 Total 26,570 1,428 6,627 1,521 2,283 1,682 1,457 4,5% 1,074 616 1,140 1,071 3,123 Held under repurchase agreement 125 125 Total U.S. Government securities 26,695 1,428 6,752 l, 521 2,283 1,682 1,457 4,548 1,074 616 l,l4o 1,071 3,123 Total loans and securities 26,929 1,433 6,824 1,527 2,293 1,684 1,465 4,625 1,084 617 1,172 1,080 3,125 u Cash items in process of collection 5,182 398 1,046 334 4l4 370 4l8 84o 211 146 ife 224 Bank premises 108 4 9 4 9 6 12 22 6 5 5 l4 12 Other assets 210 11 53 11 18 13 13 34 9 5 10 9 24 9V0 TOTAL ASSETS 50,776 2,680 12,634 2,934 4,248 3,237 2,887 8,701 2,042 1,178 2,2-fl 2,069 5,895

H.4.1(c) STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON FEBRUARY 1, l$6l San New Phila- Cleve- Rich- St. Minne- Kansas Total Boston Atlanta Chicago Dallas Fran- York delphia land mond Louis apolis City cisco L I A B I L I T I ES Federal Reserve notes 27,683 1,597 6,452 1,825 2,515 2,126 1,586 5,173 1,199 586 1,129 8l4 2,681 Deposits: Member bank reserves 621 4,574 ' 726 1,209 691 815 2,556 592 401 835 940 2,413 U.S. Treasurer-general account 1 6'$ 27 21 20 27 49 38 35 28 32 34 44 101 Foreign 225 11 1/ 67 13 20 10 12 31 7 5 9 13 Other 380 1 320 3 1 3 1 2 1 * 2 1 45 Total deposits 17,434 660 4,982 762 1,257 753 866 2,624 628 438 880 998 2,586 Deferred availability cash items 4,323 357 827 269 353 295 364 712 170 123 M 182 465 Other liabilities and accrued dividends 32 2 10 2 3 2 1 5 1 1 1 1 3 TOTAL LIABILITIES 49,472 2,616 12,271 2,858 4,120 3,176 2,017 8,514 1,998 1,140 2,216 1,995 30 CAPITAL ACCOUNTS Capital paid in 418 20 116 24 39 19 23 59 14 10 18 24 52 Surplus 817 40 229 48 75 37 44 116 27 19 35 47 ICO Other capital accounts 69 4 18 4 6 5 3 12 3 1 2 3 8 TOTAL LIABILITIES AND sr '•?y'o CAPITAL ACCOUNTS 50,776 2,680 12,634 2,934 4,248 3,237 2,887 8,701 2,c42 1,178 2,271 2,069 5,895 Contingent liability on acceptances purchased for foreign correspondents 195 10 2/ 55 11 18 9 10 27 7 5 8 11 24 FEDERAL RESERVE AGENTSf ACCOUNTS F. R. notes outstanding 29,294 1,681 6,884 1,908 2,690 2,229 1,681 5,390 1,255 666 1,165 865 • 2,880 Collateral for F. R- notes: Gold certificate account 9,255 475 2,000 650 870 670 525 11,,880000 441100 118800 300 227755 1,100 Eligible paper 47 —— — 6 10 — 31 —- U. S. Government securities 21,140 1,275 5,100 1,325 1,880 1,590 1,2C0 3,800 935 510 900 625 2,000 Total collateral 30,442 1,750 7,ico 1,981 2,750 2,260 1,725 5,600 1,355 690 1,231 900 3,100 l/ After deducting$158million participations of other Federal Reserve Banks. 2/ After deducting$l40million participations of other Federal Reserve Banks. ** Less than $>00,000.