The Decline of Commercial Banking

Archive Report

Course of Commercial Credit During Depression

Although excess reserves of member banks of the Federal Reserve System averaged $2,278,000,000 during July, the highest figure on record,*x*Excess reserves touched a new peak of $2,780,000,000, Aug. 28, due in part to reductions in reserve requirements under the 1935 banking act. the amount of commercial loans outstanding on the ledgers of weekly reporting member banks on July 31 was about $4,360,000,000, the smallest figure since 1914. Commercial loans increased somewhat during August, but the total volume outstanding failed to exceed the approximate level of 1914. Except for slight increases during short periods in the last three years, bank loans to business and industry have declined continuously and rapidly since 1929. Outstanding commercial loans of weekly reporting banks of ...
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